/raid1/www/Hosts/bankrupt/TCRAP_Public/250213.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, February 13, 2025, Vol. 28, No. 32
Headlines
A U S T R A L I A
ANGELS CARE: First Creditors' Meeting Set for Feb. 20
BLAYNEY CRANE: First Creditors' Meeting Set for Feb. 18
LEAF IMPORTS: First Creditors' Meeting Set for Feb. 20
PIO'S (WA): First Creditors' Meeting Set for Feb. 18
REX AIRLINES: Australia Open to Acquiring Collapsed Airline
STAR ENTERTAINMENT: Could Enter Administration Within a Week
STAR ENTERTAINMENT: Receives Bids for Brisbane Joint Venture
TOTAL CARE: First Creditors' Meeting Set for Feb. 19
H O N G K O N G
LAI SUN: Unit Begins Creditors' Voluntary Liquidation
I N D I A
ABAN OFFSHORE: CARE Reaffirms D Rating on INR387.47cr LT Loan
AHINSHA BUILDERS: CARE Keeps D Debt Rating in Not Cooperating
AJAY PROTECH: CRISIL Keeps B+ Debt Rating in Not Cooperating
BEN & GAWS: CRISIL Migrates B+ Debt Ratings to Not Cooperating
BHARTO DEVI: CRISIL Moves B+ Debt Ratings from Not Cooperating
HOLOFLEX LIMITED: CRISIL Withdraws B Rating on INR8.65cr Loan
J AND G TRANSFORMER: CARE Keeps D Debt Rating in Not Cooperating
JHV STEELS: CARE Keeps C Debt Rating in Not Cooperating Category
KAILA DEVI: CARE Lowers Rating on INR12cr LT Loan to B-
LAKSHMI SRINIVASA: ICRA Keeps B+ Debt Rating in Not Cooperating
M3M INDIA: ICRA Withdraws B+ Rating on INR282.66cr Term Loan
MAPLE FLEXIBBLE: CRISIL Moves B Debt Rating to Not Cooperating
NANIBALA COLD: CARE Lowers Rating on INR7cr LT Loan to B-
NASIM AHSAN: CARE Keeps B- Debt Rating in Not Cooperating Category
OSWAL KNIT: CARE Keeps D Debt Ratings in Not Cooperating Category
PATIALA DISTILLERIES: CARE Keeps C Debt Rating in Not Cooperating
PAYAL DEALERS: CRISIL Withdraws B Rating on INR12.2cr Cash Loan
PRANEE INFRASTRUCTURE: ICRA Keeps D Ratings in Not Cooperating
PS TOLL: ICRA Reaffirms C+ Rating on INR708cr Term Loan
RAJAMAHENDRAVARAM MUNICIPAL: ICRA Keeps B+ Rating in Not Coop.
RAM INDUSTRIES: ICRA Reaffirms B+ Rating on INR7.40cr Loan
RELIANCE COMMUNICATIONS: CARE Keeps D Ratings in Not Cooperating
ROYALLINE RESOURCES: CARE C/A4 Debt Ratings in Not Cooperating
SAI ENGINEERING: CRISIL Moves B- Debt Rating to Not Cooperating
SARAF AGENCIES: CARE Reaffirms D Rating on INR55cr LT/ST Loans
SAVALIA COTTON: CARE Keeps D Debt Ratings in Not Cooperating
SH MARINE: CARE Lowers Rating on INR20.50cr LT/ST Loan to D
SIDDHIDATA AGRO: CRISIL Moves B+ Debt Rating to Not Cooperating
M O N G O L I A
MONGOLIA: S&P Assigns 'B+' LT FC Rating to New Sr. Unsec. Notes
N E W Z E A L A N D
AIRWORK HOLDINGS: Previous Owner Wants to Buy Back Company
DU VAL: Owners Given Deadline to Hand Over Outstanding Assets
EURO HOLDINGS: PKF Corporate Appointed as Receivers
GHCC 2016: Creditors' Proofs of Debt Due on March 8
LIGHTFOOT SOLUTIONS: Creditors' Proofs of Debt Due on March 4
NZ AUTO: Court to Hear Wind-Up Petition on March 13
SKY FLOORING: Grant Bruce Reynolds Appointed as Liquidator
S I N G A P O R E
ASIAN AESTHETICS: Creditors' Proofs of Debt Due on March 10
ENSKY TECHNOLOGY: Creditors' Proofs of Debt Due on March 10
FOOD CHEF: Court Enters Wind-Up Order
MIRACLE CONCEPT: Court Enters Wind-Up Order
TO-GATHER DINING: Creditors' Meeting Set for March 3
S O U T H K O R E A
MG INSURANCE: Korea Deposit Insurance to File Injunction v. Union
[] S. KOREA: FSS Enhances Monitoring of High-Risk Corporations
- - - - -
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A U S T R A L I A
=================
ANGELS CARE: First Creditors' Meeting Set for Feb. 20
-----------------------------------------------------
A first meeting of the creditors in the proceedings of Angels Care
(Australia) Pty Ltd will be held on Feb. 20, 2025 at 11:00 a.m. at
the offices of Vincents - Brisbane at Level 34, 32 Turbot Street,
in Brisbane and via Zoom meeting.
Nick Combis of Vincents Chartered Accountants was appointed as
administrator of the company on Feb. 10, 2025.
BLAYNEY CRANE: First Creditors' Meeting Set for Feb. 18
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Blayney
Crane Services Pty Limited will be held on Feb. 18, 2025 at 11:00
a.m. at Rydges Mount Panorama, Bathurst, 1 Conrod Straight in
Bathurst and via Microsoft Teams platform.
Peter Hillig of Smith Hancock was appointed as administrator of the
company on Feb. 6, 2025.
LEAF IMPORTS: First Creditors' Meeting Set for Feb. 20
------------------------------------------------------
A first meeting of the creditors in the proceedings of Leaf Imports
Pty Ltd will be held on Feb. 20, 2025 at 11:00 a.m. at the offices
of Westburn Advisory at Level 5, 115 Pitt Street in Sydney.
Shumit Banerjee of Westburn Advisory was appointed as administrator
of the company on Feb. 10, 2025.
PIO'S (WA): First Creditors' Meeting Set for Feb. 18
----------------------------------------------------
A first meeting of the creditors in the proceedings of PIO'S (WA)
Pty Ltd, trading as Birraz Bar Restaurant, will be held on Feb. 18,
2025 at 12:00 p.m. via Microsoft Teams.
Sule Arnautovic of Salea Advisory was appointed as administrator of
the company on Feb. 6, 2025.
REX AIRLINES: Australia Open to Acquiring Collapsed Airline
-----------------------------------------------------------
Reuters reports that the Australian government said on Feb. 12 it
was open to acquiring collapsed airline Regional Express Holdings
to ensure its regional services continue, in what would be the
first state ownership of a carrier in the country in three
decades.
Rex entered voluntary administration last July, cutting hundreds of
jobs and grounding its Boeing 737 flights between Australia's major
cities, though it continues to operate smaller turboprop services
to and from rural areas after the government guaranteed the routes
until June this year.
It owes about AUD500 million ($314 million) to 4,800 creditors
after failing to compete effectively with rivals Qantas Airways and
Virgin Australia, which together control 98% of the domestic
aviation market.
According to Reuters, Australia's Prime Minister Anthony Albanese
said the government still preferred a private sale of the airline,
but it was open to taking a direct stake should a buyer fail to
emerge.
"We're determined to make sure that regional communities are not
left behind," Mr. Albanese told a press conference on Feb. 12,
notes the report. "If there is no sale, we will work on contingency
plans with relevant state governments, including the potential for
(government) acquisition."
Any nationalisation would be the first time the government would
hold an equity stake in an airline since it finished privatising
Qantas in 1995, Reuters notes.
Mr. Albanese's centre-left Labor Party faces reelection in
nationwide polls that must be held by May, and has been courting
rural voters with additional funding across the country.
Vast distances between towns in Australia's interior and its main
cities such as Sydney mean rural communities are reliant on
regional flights provided by Rex for essential services, including
specialist medical needs.
Reuters notes that the government has already provided a loan of up
to AUD80 million to keep Rex's regional routes operating until June
and last month acquired AUD50 million of debt from the airline's
largest creditor.
About Rex Airlines
Regional Express Pty. Ltd., trading as Rex Airlines (and as
Regional Express Airlines on regional routes), is an Australian
airline based in Mascot, New South Wales. It operates scheduled
regional and domestic services. It is Australia's largest regional
airline outside the Qantas group of companies and serves all 6
states across Australia. It is the primary subsidiary of Regional
Express Holdings.
On July 30, 2024, Samuel Freeman, Justin Walsh, and Adam Nikitins
of Ernst & Young Australia (EY Australia) were appointed Joint and
Several Voluntary Administrators by the Rex Group's respective
Boards of Directors. The companies in administration are:
* Regional Express Holdings Limited;
* Regional Express Pty Limited;
* Rex Airlines Pty Ltd;
* Rex Investment Holdings Pty Limited; and
* Air Partners Pty Ltd.
STAR ENTERTAINMENT: Could Enter Administration Within a Week
------------------------------------------------------------
Sky News Australia reports that Star Entertainment Group "could
enter administration within a week", sources told Sky News, as the
beleaguered casino operator continues to be plagued by dire cash
reserves.
The company revealed in January it had just $78 million left as of
December 31 after churning through $107 million over the previous
three months. It has sold its Sydney casino's event space for $60
million and knocked back several offers from foreign investors
looking to purchase Star's 50 per cent stake in the Brisbane
Queen's Wharf precinct, but negotiations are ongoing.
Sky News' Business Editor Ross Greenwood on Feb. 12 revealed that
Star could soon go under as its cash raising efforts have not been
enough to overcome its liquidity woes.
"Sources close to the financially troubled Star Entertainment have
revealed to us that the company could enter administration within a
week as its cash reserves again run dry," Greenwood said on
Business Now.
Star raised $100 million in early December in the first half of a
two-tranche loan package it secured in September that gives the
company upwards of $200 million.
But to access the second half of the package, Star has tough
conditions to meet, particularly with raising $150 million of
subordinated debt - a low priority loan that is not necessarily
secured by a company's assets or other forms of collateral.
Mr. Greenwood said this second package will remain out of the
cash-strapped Star's account.
"It is understood that trading conditions at its casinos have
continued to be subdued, and the next $100m will not be
forthcoming," the report quotes Mr. Greenwood as saying. "CEO Steve
McCann is understood to be urgently seeking funds and support from
the New South Wales Government to remain afloat."
About Star Entertainment
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.
As reported in the the Troubled Company Reporter-Asia Pacific on
Jan. 21, 2025, Star Entertainment has warned that it faces
"material uncertainty" over its ability to stay afloat unless it
finds a solution to its worsening financial woes.
In a quarterly update to investors on Jan. 20, ASX-listed Star said
its revenue had fallen 15 per cent in the December quarter, citing
ongoing weakness in its operating performance. It pointed to a
"challenging" consumer environment, the impact of carded play in
NSW, and expenses caused by a series of regulatory and compliance
problems.
According to The Sydney Morning Herald, the Star reiterated that it
had AUD78 million left in cash - after previously indicating
earlier in the month that it is burning through about AUD35 million
a month - which prompted Morningstar's analyst to warn the company
may not survive until its results in late February.
As it fights for survival, Star said it was continuing discussions
to attempt to deal with the crunch on its finances, but there was
no guarantee it would be able to reach a deal to resolve its
situation, the Herald relayed. It acknowledged the uncertainty over
its ability to continue operating if the negotiations were
unsuccessful.
STAR ENTERTAINMENT: Receives Bids for Brisbane Joint Venture
------------------------------------------------------------
Reuters reports that Star Entertainment Group said on Feb. 10 it
has received offers from its Hong Kong investors to acquire a 50%
interest in the embattled casino operator's Destination Brisbane
Joint Venture.
Destination Brisbane Consortium is a joint venture between Star
Entertainment and its Hong Kong partners, Chow Tai Fook Enterprises
and Far East Consortium. It operates Queen's Wharf Brisbane which
includes luxury hotels and restaurants, among other amenities.
According to Reuters, the casino operator said none of the
proposals have provided "sufficient value" for the company and that
it continues to engage with both the parties to negotiate the
proposals.
The announcement came as response to recent media report relating
to the proposed offers.
Last month, Star said it would divest its Star Sydney Event Centre
assets to theater owner and operator Foundation Theatres for AUD60
million ($37.5 million) as it undergoes a cash and liquidity
crunch, Reuters recalls.
Since 2021, Star has been embroiled in a slew of government probes
over possible breaches of anti-money laundering and
counter-terrorism laws at its Sydney and Queensland casinos.
About Star Entertainment
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.
As reported in the the Troubled Company Reporter-Asia Pacific on
Jan. 21, 2025, Star Entertainment has warned that it faces
"material uncertainty" over its ability to stay afloat unless it
finds a solution to its worsening financial woes.
In a quarterly update to investors on Jan. 20, ASX-listed Star said
its revenue had fallen 15 per cent in the December quarter, citing
ongoing weakness in its operating performance. It pointed to a
"challenging" consumer environment, the impact of carded play in
NSW, and expenses caused by a series of regulatory and compliance
problems.
According to The Sydney Morning Herald, the Star reiterated that it
had AUD78 million left in cash - after previously indicating
earlier in the month that it is burning through about AUD35 million
a month - which prompted Morningstar's analyst to warn the company
may not survive until its results in late February.
As it fights for survival, Star said it was continuing discussions
to attempt to deal with the crunch on its finances, but there was
no guarantee it would be able to reach a deal to resolve its
situation, the Herald relayed. It acknowledged the uncertainty over
its ability to continue operating if the negotiations were
unsuccessful.
TOTAL CARE: First Creditors' Meeting Set for Feb. 19
----------------------------------------------------
A first meeting of the creditors in the proceedings of Total Care
Bundaberg will be held on Feb. 19, 2025 at 10:00 a.m. via Microsoft
Teams platform.
Rajiv Ghedia of Westburn Advisory was appointed as administrator of
the company on Feb. 9, 2025.
=================
H O N G K O N G
=================
LAI SUN: Unit Begins Creditors' Voluntary Liquidation
-----------------------------------------------------
TipRanks reports that Lai Sun Garment (International) Limited
announced the commencement of a creditors' voluntary liquidation
for its indirect non-wholly-owned subsidiary, Charming Jade
Limited, which was involved in restaurant operations in Hong Kong.
TipRanks relates that this decision follows the cessation of
several key directors and highlights a significant restructuring
within the company, potentially impacting its operational focus and
market strategy.
Lai Sun Garment (International) Limited, along with its
subsidiaries Lai Sun Development Company Limited, Lai Fung Holdings
Limited, and eSun Holdings Limited, operates within the garment and
property development sectors. These companies are involved in
various operations including restaurant management and property
development, focusing on the Hong Kong market.
=========
I N D I A
=========
ABAN OFFSHORE: CARE Reaffirms D Rating on INR387.47cr LT Loan
-------------------------------------------------------------
CARE Ratings has reaffirmed ratings on certain bank facilities of
Aban Offshore Ltd (AOL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term 387.47 CARE D Reaffirmed
Bank Facilities
Cumulative 105.00 CARE D Reaffirmed
Redeemable
Preference
Shares-Series-I
Cumulative 156.00 CARE D Reaffirmed
Redeemable
Preference
Shares-Series-II
Cumulative 20.00 CARE D Reaffirmed
Redeemable
Preference
Shares-Series-III
Rationale and key rating drivers
The ratings assigned to bank facilities and preference share issues
of AOL factor in the instances of delays in debt servicing.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Satisfactory track record of timely servicing of debt obligation
on a sustained basis
Analytical approach: Standalone
Outlook: Not applicable
Detailed description of key rating drivers:
Key weaknesses
* Moderate financial performance: The company has faced a continued
decline in fleet utilization, resulting in a significant drop in
revenue over the past few years. The pandemic in FY21 severely
impacted the oil and gas sector, with reduced consumption and lower
exploration activities, which in turn led to a steep fall in day
rates and decreased revenue for Aban. PBILDT margins also turned
negative due to the under absorption of fixed costs. However, the
situation has now improved with the recovery of exploration
activities and rising crude prices. Additionally, the sale of idle
assets, including nine rigs over FY22 and FY23, has allowed the
company to better optimize fixed costs by eliminating expenses
related to maintaining non-operational assets. This operational
streamlining has led to better utilization of fixed costs,
resulting in an improvement in operating margins, though the scale
remains modest at INR65.79 crores in H1FY25.
Liquidity: Poor
AOL has been experiencing liquidity issues resulting in delays in
debt servicing.
Key strengths
* Extensive Experience of Promoters: AOL was promoted in 1986 by
late Mr. M.A. Abraham, in collaboration with Chiles Offshore Inc.
(COI), USA, an offshore drilling company in the Gulf of Mexico.
Company's management team includes Mr. Reji Abraham (Managing
Director) and Mr. C P Gopalakrishnan, (CFO& Deputy MD).
Aban Offshore Limited (AOL), the flagship company of Aban group,
provides offshore drilling services to companies engaged in
exploration and production of oil and gas. The company and its
wholly owned subsidiaries had a total of four operational assets by
the end of December 2024.
AHINSHA BUILDERS: CARE Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Ahinsha
Builders Private Limited (ABPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 37.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated February 7,
2024, placed the rating(s) of ABPL under the 'issuer
non-cooperating' category as ABPL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
ABPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated December 23, 2024,
January 2, 2025 and January 12, 2025 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
Ahinsha Builders Private Limited (ABPL) was incorporated in April
2004. The company is promoted by Mr. Ghasitumal Jain and Mr. Vipin
Jain. The company is engaged in the business of real estate
development which involves development of residential projects.
AJAY PROTECH: CRISIL Keeps B+ Debt Rating in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Ajay Protech
Private Limited (APPL) continue to be 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 21 CRISIL A4 (Issuer Not
Cooperating)
Cash Credit 15 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with APPL for
obtaining information through letter and email dated January 13,
2025 among others, apart from telephonic communication. However,
the issuer has remained non cooperative and the ratings on bank
facilities of APPL continues to be 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating'.
Earlier, the entity did not provide the No Default Statements (NDS)
for the three consecutive months. Therefore, the issuer was
classified as 'non cooperative' in line with Clause 11. 3 of SEBI
CRA Operational Circular dated May 16, 2024.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of APPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on APPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
APPL continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
Incorporated in 2011 by Mr. Amrutlal Patel and Mr Chandreshkumar
Patel, APPL engaged in construction of roads and bridges including
rail over bridges, and flyovers. The company is registered as an
'AA' class contractor with Government of Gujarat and has also
received "Special Category I" certificate.
BEN & GAWS: CRISIL Migrates B+ Debt Ratings to Not Cooperating
--------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of Ben &
Gaws Private Limited (BAGPL) to 'CRISIL B+/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Cash Credit 2 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Working 7 CRISIL B+/Stable (ISSUER NOT
Capital Facility COOPERATING; Rating Migrated)
Working Capital 5 CRISIL B+/Stable (ISSUER NOT
Loan COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with BAGPL for
obtaining NDS through letters/emails dated November 30, 2024,
December 31, 2024 and January 31, 2025 among others, apart from
telephonic communication to seek the same. After non-receipt of NDS
for 2 consecutive months, we also sent a letter dated January 23,
2025 reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of BAGPL to confirm timely debt servicing during
these months, but awaits any feedback.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive NDSs from BAGPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on BAGPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the rating on bank facilities of BAGPL
migrated to 'CRISIL B+/Stable Issuer not cooperating'.
BAGPL was incorporated in 2016 . BAGPL manufactures storage
tanks(i.e. hopper bottom silo, flat bottom silo, water tank, ss
tank, liquid tank), chain conveyor, nozzle & flanges, overhead
walkway, perforated sheet, handrail & railings, steel ducting
,profiled sheet , cable tray ,gratings and other MS structure.
BAGPL is located at New Delhi. BAGPL is managed by Mr. Ankur Gupta
and Mr. Dwaipayan Dutta.
BHARTO DEVI: CRISIL Moves B+ Debt Ratings from Not Cooperating
--------------------------------------------------------------
Due to inadequate information, CRISIL Ratings, in line with SEBI
guidelines, had migrated the rating of Smt. Bharto Devi Educational
Trust (SBD) to 'CRISIL B/Stable Issuer Not Cooperating'. However,
the management has subsequently started sharing requisite
information, necessary for carrying out comprehensive review of the
rating. Consequently, CRISIL Rating is migrating the rating on bank
facilities of SBD to 'CRISIL B+/Stable' from 'CRISIL B/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft Facility 1.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Term Loan 6.0 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
The rating reflects the trust's vulnerability to stringent
regulations, modest scale of operations and weak financial risk
profile. These weaknesses are partially offset by the extensive
experience of the management in the education sector.
Analytical Approach
CRISIL Ratings has considered the standalone business and financial
risk profiles of SBD.
Unsecured loans of INR9.10 crores as on March 31, 2024, are from
the trustees and have been treated as 75% equity and 25% debt as
the loan is expected to remain in the business over the medium
term.
Key Rating Drivers & Detailed Description
Weaknesses:
* Vulnerability to stringent regulations: Establishment and
operations of educational institutions are regulated by various
government and quasi-government agencies, such as the University
Grants Commission, Medical Council of India, All India Council for
Technical Education, Central Board of Secondary Education,
universities and state governments. Each body has detailed
procedures for granting permission to set up institutions, and
approvals need to be renewed every three or five years.
Non-compliance results in cancellation of affiliation and licence,
leading to loss of reputation and revenue.
* Modest scale of operation: Intense competition in the education
sector constrains scalability, as reflected in average revenue of
INR7.9 crore in fiscal 2024 and INR7.42 crore as of December 2024,
and operating flexibility. Further, the occupancy levels, though
improved, continue to remain moderate at about 71% in fiscal 2025.
* Weak financial risk profile: Owing to negative accretion to
reserve, networth was negative INR1.14 crore as on March 31, 2024,
leading to gearing of negative 10.74 times. However, the debt
protection metrics were moderate, as reflected in interest coverage
and net cash accrual to adjusted debt ratios of 1.82 times and 0.07
time, respectively, in fiscal 2024. Improvement in the financial
risk profile will remain monitorable.
Strength:
* Extensive industry experience of the management: The management
has experience of over seven years in the education sector. This
has given them an understanding of the market dynamics and enabled
the trust to establish market position.
Liquidity: Stretched
Cash accrual, expected at INR1.7-2.7 crore per annum, will
sufficiently cover yearly term debt obligation of INR1.2 crore over
the medium term. In addition, the management's support by way of
unsecured loan infusion, will cushion the liquidity. The current
ratio was low at 0.3 time as on March 31, 2024. Negative net worth
limits its financial flexibility and restricts the financial
cushion for any adverse conditions or downturns in the business.
Outlook: Stable
CRISIL Ratings believes SBD will maintain its business risk profile
supported by its established market position over the medium term.
Rating sensitivity factors
Upward factors
* A significant and substantial increase in revenue backed by
healthy occupancy levels and sustained operating margins at 23%,
leading to higher cash accruals
* Improvement in the financial risk profile and liquidity
Downward factors
* Decline in revenue to less than INR6 crore or significant dip in
profitability or occupancy levels, resulting in lower cash
accruals
* Any large debt funded capital expenditure or delay in receipt of
fees, thereby impacting its liquidity and financial risk profile
Set up in 2017 in Haryana, SBD operates a school in Gurugram named
Imperial Heritage School. The school offers education from nursery
to standard XII and is affiliated with CBSE. The trust is run by Mr
Yogesh Dahiya.
HOLOFLEX LIMITED: CRISIL Withdraws B Rating on INR8.65cr Loan
-------------------------------------------------------------
CRISIL Ratings has withdrawn its ratings on the bank facilities of
Holoflex Limited (HL) at the request of the company and after
receiving no objection certificate from the bank. The rating action
is in-line with CRISIL Rating's policy on withdrawal of its rating
on bank loan facilities.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.35 CRISIL B/Stable/Issuer Not
Cooperating (Withdrawn)
Cash Credit 2 CRISIL B/Stable/Issuer Not
Cooperating (Withdrawn)
Letter Of Guarantee 1.6 CRISIL A4/Issuer Not
Cooperating (Withdrawn)
Letter of Credit 0.4 CRISIL A4/Issuer Not
Cooperating (Withdrawn)
Long Term Loan 6 CRISIL B/Stable/Issuer Not
Cooperating (Withdrawn)
Proposed Long Term 8.65 CRISIL B/Stable/Issuer Not
Bank Loan Facility Cooperating (Withdrawn)
CRISIL Ratings has been consistently following up with HL for
obtaining information through letter and email dated August 12,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of HL. This restricts CRISIL
Ratings' ability to take a forward looking view on the credit
quality of the entity. CRISIL Ratings believes that rating action
on HL is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, CRISIL Ratings has
continued the ratings on the bank facilities of HL at 'CRISIL
B/Stable/CRISIL A4 Issuer Not Cooperating'.
Established in 1991 and promoted by Mr Manoj Kochar, HL
manufactures security holograms and allied holographic products at
its fully integrated production facilities in Salt Lake, Kolkata.
J AND G TRANSFORMER: CARE Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of J and G
Transformer Private Limited (JGTPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.95 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 April 25, 2024,
placed the rating(s) of JGTPL under the 'issuer non-cooperating'
category as JGTPL had failed to provide information for monitoring
of the rating as agreed to in its Rating Agreement. JGTPL continues
to be non-cooperative despite repeated requests for submission of
information through e-mails dated February 5, 2025 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 have been revised on account of non-availability of
requisite information. The rating revision also considers delays in
debt servicing recognized from publicly available information.
Analytical approach: Standalone
Outlook: Not Applicable
Gurgaon (Haryana) based J and G Transformer Company (JGTPL) was
originally established as proprietorship firm by Mr. Manohar Lal
Bera in 2009. The firm was reconstituted into private limited
company in 2015 and is currently being managed by Mr. Manohar Lal
Bera and Mrs. Usha Gera. JGTPL is engaged in manufacturing of power
& distribution transformers. JGTPL is also engaged in maintenance
and repairing of transformers. These transformers are mainly
supplied to state electricity boards of Haryana (Uttar Haryana
Bijli Vitran Nigam and Dakshin Haryana Bijli Vitran Nigam) wherein
the orders are acquired through bidding.
Status of non-cooperation with previous CRA: CRISIL has continued
the ratings assigned to the bank facilities of JGTPL into 'Issuer
not-cooperating' category vide press release dated February 4, 2025
on account of non-availability of requisite information from the
company.
JHV STEELS: CARE Keeps C Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of JHV Steels
Limited (JSL) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 11.00 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 February 6,
2024, placed the rating(s) of JSL under the 'issuer
non-cooperating' category as JSL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
JSL continues to be non-cooperative despite repeated requests for
submission of information through emails dated December 22, 2024,
January 1, 2025 and January 11, 2025 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
Kolkata based JHV Steels Limited (JSL) is a limited company
promoted by Mr. Hira Lal Jaiswal. JSL is engaged in manufacturing
of thermo mechanically treated bars (TMT Bars), coal dust and
grains. The manufacturing unit of JSL is located at Mirzapur, Uttar
Pradesh.
Status of non-cooperation with previous CRA: ICRA has continued the
ratings assigned to the bank facilities of JSL into 'Issuer
not-cooperating' category vide press release dated May 29, 2024 on
account of non-availability of requisite information from the
company.
KAILA DEVI: CARE Lowers Rating on INR12cr LT Loan to B-
-------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Kaila Devi Healthcare Services Private Limited (KDHSPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 12.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Downgraded from CARE B; Stable
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated February 6,
2024, placed the rating(s) of KDHSPL under the 'issuer
non-cooperating' category as KDHSPL had failed to provide
information for monitoring of the rating as agreed to in its Rating
Agreement. KDHSPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails dated
December 22, 2024, January 1, 2025 and January 11, 2025 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 bank facilities of KDHSPL have been revised
on account of non-availability of requisite information.
Analytical approach: Standalone
Outlook: Stable
Varanasi based Kaila Devi Healthcare Services Private Limited
(KDHSPL), was incorporated in July, 2017. Its commercial operations
started with effect from April 1, 2018 the company was incorporated
with an aim to operate a diagnostic centre to provide medical
services such as automated MRI, CT scan, Ultrasound, X-ray,
Mammography etc.
LAKSHMI SRINIVASA: ICRA Keeps B+ Debt Rating in Not Cooperating
---------------------------------------------------------------
ICRA has kept the Long-Term and Short-Term ratings of Sri Lakshmi
Srinivasa Raw & Boiled Rice Mill in the 'Issuer Not Cooperating'
category. The ratings are denoted as "[ICRA]B+(Stable); ISSUER NOT
COOPERATING/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 11.25 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term/ 3.75 [ICRA]B+(Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain
under issuer not cooperating
category
As part of its process and in accordance with its rating agreement
with SLSRBRM, ICRA has been trying to seek information from the
entity so as to monitor its performance. Further, ICRA has been
sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been continued to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
Sri Lakshmi Srinivasa Raw & Boiled Rice Mill (SLSRBRM) was
established as a proprietorship firm in 1983. In 2002, SLSRBRM was
reconstituted as partnership firm. The firm had setup a rice mill
with production capacity of 36,000 TPA to produce raw & boiled
rice. The firm operates in three shifts per day. The unit is
located at Nellore district of Andhra Pradesh.
M3M INDIA: ICRA Withdraws B+ Rating on INR282.66cr Term Loan
------------------------------------------------------------
ICRA has withdrawn the ratings assigned to the bank facilities of
M3M India Private Limited (M3M), at the request of the company and
based on the No Dues Certificate received from the lenders, in
accordance with ICRA's policy on withdrawal.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term– 282.66 [ICRA]B+; ISSUER NOT
COOPERATING;
Term Loan on Rating watch with negative
implications; withdrawn
Long term– 12.50 [ICRA]B+; ISSUER NOT COOPERATING;
non-fund based on Rating watch with negative
implications; withdrawn
Long term– 50.00 [ICRA]B+; ISSUER NOT
COOPERATING;
Fund-based– on Rating watch with negative
Overdraft implications; withdrawn
The key rating drivers and their description, liquidity position
and rating sensitivities have not been captured as the rated
instruments are being withdrawn.
M3M India Private Limited, formerly known as M3M India Ltd, was
incorporated in March 2007 by Mr. Roop Kumar and Mr. Pankaj Bansal.
The Group has a presence across residential, commercial and retail
segments of real estate and has a presence across multiple micro
markets in Delhi-NCR. Further, the company has 21 completed
projects with total saleable area of 15 million square feet with a
mix of residential and commercial construction.
MAPLE FLEXIBBLE: CRISIL Moves B Debt Rating to Not Cooperating
--------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of MFL to
'CRISIL B/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Rupee Term Loan 13 CRISIL B/Stable (Issuer Not
Cooperating/Migrated)
CRISIL Ratings has been consistently following up with MFL for
obtaining information through letter and email dated January 27,
2025 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MFL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MFL
is consistent with 'Assessing Information Adequacy Risk'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL Ratings has migrated the rating on
bank facilities of MFL to 'CRISIL B/Stable Issuer not
cooperating'.
MFL is a partnership firm and started its operations in June 2022.
MFL is engaged in manufacturing of heat shrink labels, wrap around
labels and LDPE coating films for packaging of FMCG brands. The
company has its manufacturing facility in Guwahati and has a
capacity of 1500MT/ year for LDPE shrinks.
NANIBALA COLD: CARE Lowers Rating on INR7cr LT Loan to B-
---------------------------------------------------------
CARE Ratings has revised the ratings for the bank facilities of
Nanibala Cold Storage Private Limited (NCSPL) to:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING and Downgraded from
CARE B; Stable
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated January 4,
2024, placed the rating(s) of NCSPL under the 'issuer
non-cooperating' category as NCSPL had failed to provide
information for monitoring of the rating as agreed to in its Rating
Agreement. NCSPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails dated
November 19, 2024, November 29, 2024, 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).
The ratings assigned to the bank facilities of NCSPL have been
revised on account of non-availability of requisite information.
Analytical approach: Standalone
Outlook: Stable
NCSPL was incorporated in March 1997 to set up a cold storage
facility with a storage capacity of 21,800 Metric Tonnes in Bankura
district of West Bengal. Since its inception, the company has been
engaged in the business of providing cold storage facility
primarily for potatoes to farmers along with trading of potatoes.
The company also provides interest bearing advances to farmers for
their agricultural activities against the receipts of potato
stored.
Status of non-cooperation with previous CRA: CRISIL has continued
the rating assigned to the bank facilities of NCSPL into 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
requisite information from the company.
NASIM AHSAN: CARE Keeps B- Debt Rating in Not Cooperating Category
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Nasim Ahsan
Construction Private Limited (NACPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 30.00 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 4,
2024, placed the rating(s) of NACPL under the 'issuer
non-cooperating' category as NACPL had failed to provide
information for monitoring of the rating as agreed to in its Rating
Agreement. NACPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails dated
November 19, 2024, November 29, 2024, 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).
The ratings assigned to the bank facilities of NACPL have been
revised on account of non-availability of requisite information.
Analytical approach: Standalone
Outlook: Stable
Nasim Ahsan Construction Pvt. Ltd. (NACPL) was initially promoted
as a partnership firm in April 1996 in the name of Nasim Ahsan &
Co. (NAC) to execute civil and mechanical engineering construction
projects in the state of Bihar. In February 2010, NAC was converted
into a Private Limited Company and rechristened as NACPL. The
company is engaged in providing services primarily to oil marketing
and refining companies for installation of pipeline and other
structural fabrication works. As of now, the single largest
customer for the company is Indian Oil Corporation Ltd. (IOCL).
Shri Nasim Ahsan, Managing Director, looks after the day to day
operations of the company with adequate support from other two
directors and a team of experienced professionals.
OSWAL KNIT: CARE Keeps D Debt Ratings in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Oswal Knit
India Limited (OKIL) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 19.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 16.70 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated February 1,
2024, placed the rating(s) of OKIL under the 'issuer
non-cooperating' category as OKIL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
OKIL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated December 17, 2024,
December 27, 2024 and January 6, 2025 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
Promoted by Oswal family of Ludhiana, Oswal Knit India Limited
(OKIL) was incorporated in 1992. OKIL is engaged in the
manufacturing of hosiery and woollen apparels for men and women at
its manufacturing facility located at Ludhiana, Punjab. The company
sells its readymade garments under the brand name of 'Gadoni' and
'Casablanca' through its six exclusive showrooms and through
various wholesalers and retailers.
PATIALA DISTILLERIES: CARE Keeps C Debt Rating in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Patiala
Distilleries and Manufacturers Limited (PDM) 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 0.35 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 February 1,
2024, placed the rating(s) of PDM under the 'issuer
non-cooperating' category as PDM had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
PDM continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated December 17, 2024,
December 27, 2024 and January 6, 2025 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
Patiala Distillers and Manufacturers Limited (PDML) is a closely
held public limited company incorporated in Nov-1974. The company
is currently being managed by the directors - Mr. Sudarshan Kumar
Modi, Mr. Sanjeev Kumar Modi, Mr. Tarun Kumar Modi, Mr. Kewal
Aggarwal and Mr. Virendra Swarup Agarwal. The company is engaged in
the manufacturing of rectified spirit (RS) and extra neutral
alcohol (ENA) and sells it in the form of Country Liquor (CL) and
India Made Foreign Liquor (IMFL).
PAYAL DEALERS: CRISIL Withdraws B Rating on INR12.2cr Cash Loan
---------------------------------------------------------------
CRISIL Ratings has withdrawn its rating on the bank facilities of
Payal Dealers Private Limited (PDPL) at the request of the company
and after receiving no objection certificate from the bank. The
rating action is in-line with CRISIL Rating's policy on withdrawal
of its rating on bank loan facilities.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12.2 CRISIL B/Stable/Issuer Not
Cooperating (Withdrawn)
CRISIL Ratings has been consistently following up with PDPL for
obtaining information through letter and email dated May 15, 2024
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of PDPL. This restricts CRISIL
Ratings' ability to take a forward looking view on the credit
quality of the entity. CRISIL Ratings believes that rating action
on PDPL is consistent with 'Assessing Information Adequacy Risk'
Based on the last available information, the ratings on the bank
facilities of PDPL continues to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Analytical Approach
CRISIL Ratings has evaluated the standalone business and financial
risk profiles of PDPL.
PDPL was incorporated in 1996 by Mr Pawan Gupta. This company,
based in Hooghly (West Bengal), processes cashew and manufactures
agarbatti for ITC Ltd.
PRANEE INFRASTRUCTURE: ICRA Keeps D Ratings in Not Cooperating
--------------------------------------------------------------
ICRA has kept the Long-Term and Short-Term ratings of Pranee
Infrastructure Pvt. Ltd. (PIPL) in the 'Issuer Not Cooperating'
category. The ratings are denoted as "[ICRA]D; ISSUER NOT
COOPERATING/[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ 10.00 [ICRA]D/[ICRA]D; ISSUER NOT
Short Term COOPERATING; Rating Continues to
Fund Based/ remain under issuer not
Non-Fund Based cooperating category
As part of its process and in accordance with its rating agreement
with PIPL. ICRA has been trying to seek information from the entity
so as to monitor its performance. Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
Incorporated in 2013, Pranee Infrastructure Private Limited (PIPL)
is a private limited company based out of Bangalore. The company
primarily operates as a civil contractor engaged in the
construction of residential complex and commercial buildings. The
company is mainly engaged in building construction, internal
electrical works, road works etc. The company has undertaken
various projects for Renaissance Holdings & Developers Private
Limited. Within the building construction segment, the company is
executing residential and commercial projects. The orders for civil
construction are procured majorly through networking of the
director and also through tenders awarded. Mr. Venkateswarlu, the
overall in-charge director has around 3 decades of experience in
construction industry. The commercial operations of the company
started in the month of September 2013.
PS TOLL: ICRA Reaffirms C+ Rating on INR708cr Term Loan
-------------------------------------------------------
ICRA has reaffirmed ratings on certain bank facilities of PS Toll
Road Private Limited (PSTRPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term-
Fund-based-
Term loan 708.00 [ICRA]C+; reaffirmed
Long-term-
Unallocated
Limits 82.00 [ICRA]C+; reaffirmed
Rationale
The rating for PSTRPL remains constrained by the prolonged delays
in project completion and the ongoing dispute between PSTRPL and
the National Highways Authority of India [NHAI, rated
[ICRA]AAA(Stable)] over penalties for the delay in project
completion and premium payable in line with the provisions of the
Concession Agreement. The total claim amount by the NHAI from the
company, represents a significant sum, including claims related to
non-payment of premiums and accrued interest thereon. The company
has made counterclaims primarily related to engineering,
procurement and construction (EPC) contractor-related services. Any
crystallisation in this claim liability would have an adverse
impact on its credit profile and hence will remain a key rating
monitorable. Although the company has maintained a debt service
reserve account (DSRA) balance of INR25.9 crore as on January 29,
2025, it is lower than the lenders' stipulated DSRA to cover
succeeding three months' principal and interest obligations.
Notwithstanding the track record of toll collections, the project
remains exposed to risks inherent in BOT (toll) road projects,
including risks arising from political acceptability of rate hikes
linked to WPI over the concession period and interest rate risk,
given the floating nature of interest rates.
The rating, however, favourably takes into account the project's
long established tolling track record of 14+ years, along with the
advantageous location, on the Mumbai-Chennai stretch of the Golden
Quadrilateral offering strategic benefits to its operations, which
is reflected in its healthy CAGR of 9.5% in toll revenue during
FY2018-2024, with 7% growth in FY2024, supported by toll rate hike
of ~6%.
Key rating drivers and their description
* Operational nature of project; established toll collection track
record: The project has an operational track record of 14+ years,
with healthy CAGR of 9.5% in toll revenue during FY2018-2024 and 7%
growth in FY2024, supported by toll rate hike of ~6%. The project
stretch is a part of the Mumbai – Chennai stretch of the Golden
Quadrilateral, connecting major cities of Pune, Kolhapur and
Bangalore. Traffic is majorly composed of cars (70%-75%) and
buses/trucks (11%-13%). Traffic volumes are driven by major tourist
attractions like Mahabaleshwar, Panchgani and Kas Pathaar near the
stretch. While ICRA notes the project's strategic location, the
stretch witnessed a ~3% YoY decline in traffic in 8M FY2025 due to
ongoing construction work on the Kagal-Satara section of NH48,
which resulted in traffic diversion via Solapur (Maharashtra).
However, this disruption is temporary, and traffic volume is
expected to recover post FY2026.
Credit challenges
* Continuing delays in project execution; exposed to residual
execution risk: There have been prolonged delays in project
execution for around a decade (original scheduled completion date
was March 31, 2013). Till date, PSTRPL has received the NHAI's
approval for extension of timeline for construction till December
31, 2015. ICRA notes that the Independent Engineer has recommended
extension of time on multiple occasions. However, the same are yet
to be approved by the NHAI. The project received provisional
completion certificate on April 30, 2022, subject to completion of
pending punch list works (of INR184.9 crore) within ensuing 90/180
days (for punch list A and B respectively), though the same has
been delayed by challenges like unhindered right of way (RoW),
rainfall and other local issues as per the lender's engineer
report. The balance work outstanding was INR41.8 crore as on
December 25, 2024 (pertaining to hindered stretches of land).
However, the company has applied for its descoping because of
unavailability of RoW. It shall remain exposed to residual
execution risk till the same is received.
* Sizeable contingent liability, primarily on account of claims
filed by authority: The dispute between the company and the NHAI
over penalties for the delay and NHAI premium is subject to
arbitration. The total claim amount by the NHAI from the company,
represents a significant sum, including claims related to
non-payment of premiums and accrued interest thereon. The company
has made counterclaims primarily related to engineering,
procurement and construction (EPC) contractor-related services.
PSTRPL is paying premium in line with the provisions of the
Concession Agreement from October 2023 onwards (to be escalated by
5% annually), with the amount for November 2024 and December 2024
currently pending release from escrow account. Any crystallisation
of the NHAI's claim liability would have an adverse impact on the
company's credit profile.
* Risks inherent to toll road projects and interest rate risk: The
project remains exposed to risks inherent in BOT (toll) road
projects, including risks arising from variation in traffic volume
over the project stretch and its dependence on the economic
activity in the surrounding regions. Moreover, it is vulnerable to
movement in WPI (for toll rate hike), political acceptability of
toll rate hikes over the concession period, development/improvement
of alternative routes and likelihood of toll leakages.
Further, the project's cash flows and profitability remain exposed
to the interest rate risk due to the floating nature of the
interest rate. ICRA notes that although company has maintained a
DSRA balance of INR25.9 crore as on January 29, 2025, it is lower
than the lenders' stipulated DSRA to cover succeeding three months'
principal and interest obligations.
Liquidity position: Stretched
As on January 29, 2025, the free cash balance stood at ~Rs. 35
crore. The prolonged capital expenditure, coupled with suspension
of toll collections in the past, has strained PSTRPL's cash flows,
necessitating dependence on sponsor support in the past. The
project cashflows are expected to be adequate to cover capital
expenditure, scheduled debt obligations and routine O&M expenses.
However, given the decline in traffic due to ongoing construction
on subsequent stretch, adequacy of cashflows for timely payment of
NHAI premium remains a key monitorable. Further, any adverse
outcome of the ongoing arbitration proceedings on claims and
outstanding NHAI deferred premium could further result in cash flow
mismatches.
Rating sensitivities
Positive factors – The rating could be upgraded on sustained and
material improvement in debt coverage metrics, creation of
stipulated reserves in line with the lenders' requirements, along
with improvement in liquidity position. Moreover, a favourable
outcome from arbitration proceedings is also vital for a rating
upgrade.
Negative factors – Any weaker-than-expected toll collections
resulting in weakening in debt coverage metrics and/or any
unfavourable outcome on disputes with the NHAI leading to material
liability could lead to downward movement in rating.
Incorporated in February 2010, PSTPRL is a special purpose vehicle
fully held by Reliance Infrastructure Limited. The scope of work
included widening of Pune - Satara stretch from four lanes to six
lanes on design, build, finance, operate and transfer basis under
NHDP Phase V in Maharashtra. The project is a part of NH-4 and
starts at km 725.00 and ends at km 865.35 of NH 4 covering a total
length of about 140.35 km. The project was awarded by the NHAI
based on the highest premium quoted of INR90.90 crore in the first
year, i.e., from October 2010. The project achieved provisional
completion on April 30, 2022 and is under process for receiving
full completion.
RAJAMAHENDRAVARAM MUNICIPAL: ICRA Keeps B+ Rating in Not Coop.
--------------------------------------------------------------
ICRA has kept the Long-Term rating of Rajamahendravaram Municipal
Corporation (RMC) in the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Issuer Rating - [ICRA]B+(Stable); ISSUER NOT
COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with RMC, ICRA has been trying to seek information from the entity
so as to monitor its performance. Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
The RMC was upgraded to a municipal corporation in 2005 from a
selection-grade municipality. RMC is governed by the Andhra Pradesh
Municipal Corporations Act 1994 (Act). It manages the municipal
services in Rajamahendravaram city, located in the East Godavari
district in coastal Andhra Pradesh. RMC covers an area of 44.5
square kilometres (sq. km.) and serves a population of 3.4 lakh (as
per Census 2011). Its major functions include water supply, solid
waste management and construction, repair and maintenance of roads
and streetlights in its area. Divided into 50 municipal wards, an
elected body headed by a Mayor administers the corporation while
the Commissioner acts as the executive head overseeing its everyday
functioning.
RAM INDUSTRIES: ICRA Reaffirms B+ Rating on INR7.40cr Loan
----------------------------------------------------------
ICRA has reaffirmed ratings on certain bank facilities of Sri Ram
Industries (SRI), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based–
Working capital 7.40 [ICRA]B+(Stable); reaffirmed
Fund-based–
Term loan 2.04 [ICRA]B+(Stable); reaffirmed
Unallocated 1.06 [ICRA]B+(Stable); reaffirmed
Rationale
The rating considers SRI's moderate scale of operations with
estimated revenues of INR32-35 crore in FY2025, along with modest
operating margins due to limited value addition in the work done
and highly fragmented and intense competition in the rice milling
industry, which limits its pricing power. SRI's total debt is
estimated at INR10-12 crore as of March 2025 (PY: INR10.7 crore),
which will majorly fund the working capital requirements
(inventory). Consequently, the debt protection metrics are
estimated to remain modest, with high leverage, Total Debt/OPBIDTA
of 6.0-6.5 times as of March 2025 and weak interest coverage of
1.7-2.0 times in FY2025. SRI's revenues and margins are susceptible
to volatile paddy prices, and adverse changes in agro-climatic
conditions as well as Government regulations, which can affect the
availability of paddy. Additionally, the rating remains constrained
by the risks associated with the partnership nature of the firm.
The rating, however, favourably factors in the extensive track
record of Sri Ram Industries' (SRI) partners in the rice milling
industry and ease in paddy procurement owing to the proximity of
its plant to major paddy-cultivating regions in northern Karnataka.
The firm's business continues to derive comfort from the favourable
demand prospects of the industry as India is the second-largest
producer and consumer of rice, globally.
The Stable outlook on the [ICRA]B+ rating reflects ICRA's opinion
that SRI's revenues will continue to benefit from its proximity to
rice-growing areas.
Key rating drivers and their description
Credit strengths
* Extensive experience of promoters in rice milling business;
proximity to rice-growing areas: SRI is involved in the processing
of raw rice and parboiled rice. The firm's milling unit at Manvi,
in Raichur district, has an installed capacity of 4 MT per hour.
The promoters have been involved in the rice milling business for
over two decades and, hence, have extensive operational track
record in the rice milling industry. Its plant in Manvi is
surrounded by areas such as Raichur, Sindhnoor and Gangavathi,
hence has proximity to major paddy-cultivating regions in northern
Karnataka. This yields low transportation cost for the firm and
easy availability of paddy.
* Favourable long-term demand outlook: The demand prospects of the
rice industry are expected to remain favourable, supported by
India's growing population with rice remaining a staple food grain
in the country. Moreover, the firm's business continues to derive
comfort from the favourable demand prospects of the industry as
India is the second-largest producer and consumer of rice,
globally.
Credit challenges
* Moderate scale of operations and modest debt protection metrics:
The scale of operations remains moderate with estimated revenues of
INR32-35 crore in FY2025 (PY: INR41.7 crore) with modest operating
margins due to limited value addition in work done, along with
highly fragmented and intense competition in the rice milling
industry, which limits its pricing power. The total debt is
estimated at INR10-12 crore as of March 2025 (PY: INR10.7 crore),
which will majorly fund the working capital requirements
(inventory). Consequently, the debt protection metrics are
estimated to remain modest, with high leverage, Total Debt/OPBIDTA
of 6.0-6.5 times as of March 2025 and weak interest coverage of
1.7-2.0 times in FY2025
* Stiff competition in industry; inherent agro-climatic risks and
vulnerability to changes in Government regulations limits pricing
power: Owing to low entry barriers, along with readily available
technology and proximity to rice-cultivating belt, there are more
than 100 rice milling units in and around Raichur, resulting in
intense competition for paddy procurement. This affects volumes and
limits the pricing flexibility for rice millers. Further, players
in the industry face inherent risks such as unfavourable monsoons,
unavailability of raw materials at reasonable prices, epidemics in
paddy crop or shift of farmers to other cash crops, volatile paddy
prices, cyclicality and are vulnerable to changes in Government
regulations and policies. Inherent risks associated with
partnership nature of business – SRI is exposed to risks
associated with partnership nature of firm including limited
ability to raise capital and capital withdrawal by partners, which
could adversely impact its capital structure.
Liquidity position: Stretched
SRI's liquidity position remains stretched with minimal cash and
cash equivalents. The firm had an average working capital
utilisation of 73% in the past 12 months, while the utilisation is
high during harvest seasons. The firm has low debt repayment
obligations in FY2025 and FY2026, which are expected to be
adequately met through its cash flow from operations.
Rating sensitivities
Positive factors – ICRA could upgrade the rating in case of a
significant and sustained increase in scale of operations and
earnings, along with improvement in debt protection metrics and
liquidity position.
Negative factors – Negative pressure on SRI's rating could arise
in case of a decline in revenues or margins leading to weakened
debt protection metrics. Any withdrawal of capital or increase in
working capital intensity leading to stretch in liquidity position
can also lead to a downgrade.
Sri Ram Industries, incorporated in 2007, is a partnership firm
involved in milling of paddy and produces non-basmati raw rice. The
firm's major products include boiled rice, raw rice, bran, broken
rice and husk. SRI has a milling unit in Manvi, in Raichur
district, Karnataka with an installed milling capacity of 4 MT per
hour. Its plant is spread over 3.5 acres with a storage capacity of
80,000 bags (75 kg each) of paddy and 250 MT of rice. SRI sells raw
rice under eight brands namely, KDM, Ram, Shilpa, RSK,MVM, AKS, VTC
and Double Parrot. Also, it sells broken rice under two brands
namely, Rabbit and Helicopter.
RELIANCE COMMUNICATIONS: CARE Keeps D Ratings in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Reliance
Communications Limited (RComm) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9,322.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 8,034.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Non-convertible 750.00 CARE D; ISSUER NOT COOPERATING
debentures Rating continues to remain
under ISSUER NOT COOPERATING
category
Short-term 2,880.00 CARE D; ISSUER NOT COOPERATING
Instruments Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Limited (CARE Ratings) had, vide its press release
dated November 28, 2018, placed ratings of RComm under the 'Issuer
non-cooperating' category, as RComm failed to pay the surveillance
fees for the rating exercise as agreed to in its Rating Agreement.
RComm continues to be non-cooperative despite repeated requests
through e-mails, phone calls, and has not provided the requisite
information for monitoring the ratings. In line with the extant
Securities and Exchange Board of India (SEBI) guidelines, CARE
Ratings has reviewed the ratings based on best available
information, which, however, in CARE Ratings' opinion is not
sufficient to arrive at a fair rating. Ratings on RComm's bank
facilities and instruments continue to be denoted as 'CARE D;
ISSUER NOT COOPERATING'.
Users of this rating (including investors, lenders and public at
large) are hence requested to exercise caution while using the
above rating(s).
Rating sensitivities: Factors likely to lead to rating actions
Not applicable
Analytical approach: Consolidated
Considering the strong operational and financial linkages with the
subsidiaries, the consolidated financials of RComm are considered
for analysis purpose.
Outlook: Not applicable
Detailed description of key rating drivers:
At the time of last rating on February 9, 2024, the following were
the rating strengths and weaknesses:
Key weakness
* Delay in servicing of debt obligation: RComm had delayed
servicing its debt obligations due to severe deterioration in the
financial and liquidity profile of the company, and high debt
service obligations.
Liquidity: Poor
Liquidity position of the company is under stress due to weak cash
accruals against large debt obligations.
Founded by late Dhirubhai H. Ambani, RComm is the flagship company
of the Reliance Group, led by Anil Dhirubhai Ambani. RComm is one
of India's integrated telecommunications service providers. The
services it provides include GSM (Voice; 2G, 3G, 4G), fixed line
broadband and voice, and Direct-To-Home (DTH), depending upon its
areas of operation in India. The company had to shut down its
business operations as a result of its high debt burden and a
failed merger with Aircel. RComm is currently under corporate
insolvency resolution process (CIRP) pursuant to the provisions of
the Insolvency and Bankruptcy Code, 2016.
ROYALLINE RESOURCES: CARE C/A4 Debt Ratings in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Royalline
Resources Limited (RRL) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ 130.00 CARE C; Stable/CARE A4; ISSUER NOT
Short Term COOPERATING; Rating continues to
Bank Facilities remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated February 9,
2024, placed the rating(s) of RRL under the 'issuer
non-cooperating' category as RRL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
RRL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated December 25, 2024,
January 4, 2025 and January 14, 2025 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
Incorporated as Sacvinam Exports Private Limited in 1994, Royalline
Resources Limited (RRL) is engaged mainly in the export of iron ore
fines and mill scales along with trading of imported steam coal,
sugar, soya bean, cashew nuts and other agro commodities. RRL has
facilities (warehousing) of exports from all the major ports from
India viz Vizag, Haldia, Paradip, Chennai and Kandla. RRL is a part
of the Radiant Group of companies. The Radiant group is
headquartered in Singapore and presence in 5 continents and 11
countries. Royalline Resources Limited is the flagship company of
the group.
Status of non-cooperation with previous CRA: India Ratings has
continued the rating assigned to the bank facilities of RRL under
Issuer Not Cooperating category vide press release dated July 14,
2024 on account of its inability to carry out a review in the
absence of the requisite information from the company.
SAI ENGINEERING: CRISIL Moves B- Debt Rating to Not Cooperating
---------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of Sri
Sai Engineering and Drilling (SSED) to 'CRISIL B-/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 1 CRISIL B-/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
Secured Overdraft 9 CRISIL B-/Stable (ISSUER NOT
Facility COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with SSED for
obtaining information through letter and email dated January 6,
2025 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SSED, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SSED
is consistent with 'Assessing Information Adequacy Risk'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL Ratings has migrated the rating on
bank facilities of SSED to 'CRISIL B-/Stable Issuer not
cooperating'.
SSED was set up in 1995 as a partnership firm by Mr Prasad Rao and
his wife, Ms V Jaya Lakshmi; it is based in Vijayawada (Andhra
Pradesh). The firm provides oil and gas exploration services
related to seismic surveys and drilling of wells.
SARAF AGENCIES: CARE Reaffirms D Rating on INR55cr LT/ST Loans
--------------------------------------------------------------
CARE Ratings has reaffirmed ratings on certain bank facilities of
Saraf Agencies Private Limited (SAPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 22.22 CARE D; Reaffirmed
Facilities
Long Term/
Short Term Bank
Facilities 55.00 CARE D/CARE D Reaffirmed
Rationale and key rating drivers
Reaffirmation in the ratings assigned to the bank facilities of
SAPL considers the ongoing delay in debt servicing as the company
has poor liquidity profile attributable to ongoing cash losses on
account unviability of supply of orders at current market prices.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Delays/defaults free track record of 90 days.
Analytical approach: Standalone.
Outlook: Not Applicable.
Detailed description of the key rating drivers:
Key weaknesses
* Delay in debt servicing: There is ongoing delay in debt servicing
as SAPL continues to incur cash losses on account of unviability of
supply of orders at current market prices.
Liquidity: Poor
Poor liquidity position of marked by ongoing delay in debt
servicing.
Saraf Agencies Private Limited (SAPL) was originally incorporated
as Eastern Steel Forgings Private Limited in June, 1965 and
subsequently its name was changed to its present name in August,
2003. SAPL is a part of the Kolkata based Forum Group promoted by
Late S. M. Shroff. The group is primarily engaged in the business
of real estate development and caters to both commercial and
residential segments in Eastern India. SAPL is engaged in
manufacturing of titanium slag plant with a capacity of 36,000 ton
per annum (TPA) with 4 furnaces and a high purity pig iron plant
(by-product) with a capacity of 20,000 TPA.
SAVALIA COTTON: CARE Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Savalia
Cotton Ginning and Pressing Private Limited (SCGPPL) continue to
remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 44.22 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 3.50 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 January 11,
2024, placed the rating(s) of SCGPPL under the 'issuer
non-cooperating' category as SCGPPL had failed to provide
information for monitoring of the rating as agreed to in its Rating
Agreement. SCGPPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails dated
November 26, 2024, December 6, 2024, December 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
Incorporated in November 1999, Rajkot-based, SCGPPL is promoted by
Mr. Utpal Savalia and Mr. Jitendra Bhalara and is engaged in cotton
ginning & pressing and trading of cotton & cotton seeds. As on
March 31, 2015, SCGPL had an installed capacity of 13,000 Metric
Tonne Per Annum (MTPA) of cotton ginning at its processing unit
located at Shapar Industrial Area near Rajkot in Gujarat.
SH MARINE: CARE Lowers Rating on INR20.50cr LT/ST Loan to D
-----------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
SH Marine Exim, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.80 CARE D; ISSUER NOT COOPERATING
Facilities Downgraded from CARE B+; Stable
and moved to ISSUER NOT
COOPERATING category
Long Term/ 20.50 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Downgraded from
Bank Facilities CARE B+; Stable/CARE A4 and
moved to ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. has been seeking information from SH Marine Exim
to monitor the rating(s) vide e-mail communications dated October
4, 2024, January 30, 2025 among others and numerous phone calls.
However, despite repeated requests, the firm has not provided the
requisite information for monitoring the ratings.
In line with the extant SEBI guidelines, CARE Ratings 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. The rating on SH Marine Exim's bank
facilities will now be denoted as CARE D/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).
The revision in ratings assigned to the bank facilities of SH
Marine Exim (SHME) takes into account the delay in debt servicing
of the term loan obligations of the company as ascertained as part
of CARE's due diligence exercise.
Analytical approach: Standalone
Outlook: Not applicable
Detailed description of the key rating drivers:
Key weaknesses
* Delay in debt servicing: As per the lender feedback, as part of
due diligence exercise conducted by CARE Ratings Ltd, there has
been instances of delay in repayment of term loan obligations.
* Small scale of operations; sharp reduction in sales in 11MFY24:
The firm is involved in processing and export of seafood, mainly
vannamei shrimp followed by cuttlefish, octopus, ribbon fish,
squid, etc. The firm uses only block freezing technique and the
seafood is exported as frozen blocks. The total operating income
(TOI) stood modest at INR81.70 crore in FY23 and has further
declined to INR25.78 crore in 11MFY24. The sharp reduction in sales
in was primarily on account of subdued demand from the Chinese
market which is the primary export destination of the firm. SHME
expects revenues to improve post stabilisation of demand in export
destinations. Thin profit margins exposed to raw material
volatility and foreign currency fluctuations. The PBILDT margin of
the firm had been thin and fluctuating over the last three years
between 2-4% primarily due to the volatility in the raw material
prices. Moreover, the company has limited ability to pass on any
increase in raw material prices to its customers, as the
end-product prices are mostly determined by the international
demand-supply scenario. SHME is also susceptible to fluctuation in
foreign currency, affecting profitability.
* Presence in highly regulatory industry and exposure to
water-borne diseases: Shrimp is a depleting commodity and increased
severity of regulations on excessive fishing has rendered supply
more irregular. Thus, the governments around the world regularly
put up new regulations regarding the international trade of shrimp.
However, SHME is procuring shrimp from its own shrimp farms, which
help it overcome the supply irregularities. There are varieties of
lethal viral and bacterial diseases that might affect shrimps. The
fact that the shrimps are kept in clusters acts as an exponential
factor in multiplying the disease caught by a single shrimp and
wipes out almost 90% of the total shrimp population in a particular
farm.
Liquidity: Poor
The company has delays in servicing debt obligations as per the due
diligence conducted by CARE.
Kochi based SHME was incorporated in 2010 as a proprietorship firm
and later converted into partnership firm in October 2013 as a
family business by Mr. Siraj and his wife Mrs. Gansa Siraj. The
firm is engaged in the processing and export of various varieties
of sea food, primarily shrimp followed by octopus, cuttle fish,
squid, various types of fish etc. The company has an installed
monthly capacity of 30-35 tonnes/day.
SIDDHIDATA AGRO: CRISIL Moves B+ Debt Rating to Not Cooperating
---------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of Shree
Siddhidata Agro Industries Private Limited (SSAIPL) to 'CRISIL
B-/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Term Loan 28 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with SSAIPL for
obtaining NDS through letters/emails dated November 30, 2024,
December 31, 2024 and January 31, 2025 among others, apart from
telephonic communication to seek the same. After non-receipt of NDS
for 2 consecutive months, we also sent a letter dated January 23,
2025 reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of SSAIPL to confirm timely debt servicing
during these months, but awaits any feedback.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive NDSs from SSAIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on SSAIPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the rating on bank facilities of SSAIPL
migrated to 'CRISIL B+/Stable Issuer Not Cooperating'.
Incorporated in December 2022, SSAIPL is setting up a manufacturing
facility at Kopaganj in Uttar Pradesh to produce wheat-related
products such as atta, sooji, maida and bran. The facility will
have two units — one for manufacturing sooji, maida, atta and
bran and the other for atta and bran. Overall manufacturing
capacity will be 400 tonne per day. The company is promoted by Mr
Nirmal Gupta and his family members.
===============
M O N G O L I A
===============
MONGOLIA: S&P Assigns 'B+' LT FC Rating to New Sr. Unsec. Notes
---------------------------------------------------------------
S&P Global Ratings assigned its 'B+' long-term foreign currency
issue rating to the benchmark-sized U.S. dollar-denominated senior
unsecured notes that Mongolia proposes to issue.
The note issuance is part of the Mongolia government's liability
management exercise. Concurrently, Mongolia (B+/Positive/B) has
announced a tender offer on its U.S. dollar-denominated bonds due
in 2026 and 2028. The government intends to fund the tender offer
using proceeds from the note issuance.
The notes represent direct, general, unconditional, unsecured, and
unsubordinated obligations of the sovereign, and rank equally with
the sovereign's other unsecured and unsubordinated debt
obligations.
The rating on the notes is subject to S&P's review of the final
issuance documentation.
=====================
N E W Z E A L A N D
=====================
AIRWORK HOLDINGS: Previous Owner Wants to Buy Back Company
----------------------------------------------------------
The New Zealand Herald, citing BusinessDesk, reports that aviation
veteran Hugh Jones is on a mission to save former NZX-listed
Airwork Holdings from the clutches of liquidation.
Last month he wrote to the Chinese owner, Zhejiang Rifa Precision
Machinery (RPM), saying he was interested in buying back the
company once he had a clear idea of what assets were left and the
state of its finances, NZ Herald relates.
Until he had that information, he said he could not contemplate
what sort of offer he would make.
"There's some value [in Airwork], but each day it is diminishing,"
NZ Herald quotes Mr. Jones as saying, referring to numerous recent
announcements about Airwork to RPM investors.
Mr. Jones bought into the company in 1984. A few years later, he
bought out Allan Hubbard's stake and rapidly overhauled the
business. He said when Airwork was sold to the Chinese in 2016 and
2017, the then-NZX-listed company "was in great shape".
BusinessDesk reports that Airwork Holdings faces liquidation over a
NZD146.35 million plus NZD230,000 syndicated loan due for repayment
by the end of July.
Its listed Chinese parent, Zhejiang Rifa Precision Machinery (RPM)
told investors in an announcement to the Shenzhen Stock Exchange on
Feb. 7 that Airwork had begun negotiating with banks but the loan
could not be repaid by the due date of July 31, BusinessDesk
relates.
DU VAL: Owners Given Deadline to Hand Over Outstanding Assets
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Radio New Zealand reports that the owners of the troubled Du Val
property group have been given a deadline to hand any outstanding
assets to receivers - and to explain the whereabouts of some
jewellery.
Du Val, which comprised dozens of companies, was in statutory
management, owing about NZD240 million dollars to creditors and
investors.
Owners Kenyon and Charlotte Clarke were also in personal
receivership.
RNZ relates that the couple was ordered to hand most of their
personal assets to the receivers, PWC, but there was a legal
dispute about what they needed to hand over - and when.
In a memo released this week, a High Court judge said the Clarkes
had until next week to explain what happened to some assets the
receivers considered unaccounted for, according to RNZ.
In particular, they must detail any jewellery they had not
previously disclosed, the memo said.
If they considered an item to be lost, or they had given it away,
they must provide details, the judge said.
By this Friday [Feb. 14], the couple must hand over any assets
previously identified in court documents to the receivers, RNZ
says.
RNZ adds that the Clarkes told the court they were unhappy with the
conduct of the receivers who had a dual role as the statutory
management of their companies.
However, they said they were committed to complying with all lawful
orders.
About Du Val Group
Du Val Group -- https://duval.co.nz/ -- is a developer of
large-scale residential projects in New Zealand, renowned for their
innovative design.
As reported in the Troubled Company Reporter-Asia Pacific, the
Financial Markets Authority on Aug. 21, 2024, confirmed that the
Governor-General, on the advice of the Minister of Commerce and
Consumer Affairs given in accordance with a recommendation from the
FMA, declared a number of entities within the Du Val group be
placed in statutory management under the terms of the Corporations
(Investigation and Management) Act 1989 (the Corporations Act).
Statutory management for these entities was announced by the
Minister on Aug. 21, 2024 effective immediately. John Fisk, Stephen
White and Lara Bennett of PwC New Zealand, who were appointed as
interim receivers on Aug. 2, 2024, have been appointed as the
Statutory Managers.
EURO HOLDINGS: PKF Corporate Appointed as Receivers
---------------------------------------------------
Christopher Carey McCullagh and Stephen Mark Lawrence of PKF
Corporate Recovery & Insolvency on Feb. 12, 2025, were appointed as
receivers and managers of Euro Holdings Limited.
The receivers and managers may be reached at:
PKF Corporate Recovery
Level 15, Swanson House
12–26 Swanson Street
Auckland 1010
GHCC 2016: Creditors' Proofs of Debt Due on March 8
---------------------------------------------------
Creditors of GHCC 2016 Limited are required to file their proofs of
debt by March 8, 2025, to be included in the company's dividend
distribution.
The High Court at Auckland appointed Adam Botterill and Damien
Grant of Waterstone Insolvency as liquidators on Feb. 5, 2025.
LIGHTFOOT SOLUTIONS: Creditors' Proofs of Debt Due on March 4
-------------------------------------------------------------
Creditors of Lightfoot Solutions New Zealand Limited are required
to file their proofs of debt by March 4, 2025, to be included in
the company's dividend distribution.
The company commenced wind-up proceedings on Feb. 4, 2025.
The company's liquidators are:
Gareth Russel Hoole
Raymond Paul Cox
Ecovis KGA Limited
Level 2, 5–7 Kingdon Street
Newmarket
Auckland 1023
NZ AUTO: Court to Hear Wind-Up Petition on March 13
---------------------------------------------------
A petition to wind up the operations Of NZ Auto Parts Limited will
be heard before the High Court at Dunedin on March 13, 2025, at
10:00 a.m.
Otago Car Wreckers Limited filed the petition against the company
on Nov. 11, 2024.
The Petitioner's solicitor is:
Charles Alexander Robert Darling
c/- Wilkinson Rodgers Lawyers
Level 1, Burns House
10 George Street
Dunedin
SKY FLOORING: Grant Bruce Reynolds Appointed as Liquidator
----------------------------------------------------------
Grant Bruce Reynolds of Reynolds & Associates on Feb. 5, 2025, was
appointed as liquidator of Sky Flooring Limited.
The liquidator may be reached at:
Reynolds & Associates Limited
PO Box 259059
Botany
Auckland 2163
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S I N G A P O R E
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ASIAN AESTHETICS: Creditors' Proofs of Debt Due on March 10
-----------------------------------------------------------
Creditors of Asian Aesthetics Centers Pte. Ltd. are required to
file their proofs of debt by March 10, 2025, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Feb. 5, 2025.
The company's liquidators are:
Leow Quek Shiong
Gary Loh Weng Fatt
Seah Roh Lin
c/o BDO Advisory Pte. Ltd.
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
ENSKY TECHNOLOGY: Creditors' Proofs of Debt Due on March 10
-----------------------------------------------------------
Creditors of Ensky Technology Pte. Ltd. are required to file their
proofs of debt by March 10, 2025, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Feb. 3, 2025.
The company's liquidator is:
Wee Phui Gam
c/o 111 Somerset Road #13-33
Singapore 238164
FOOD CHEF: Court Enters Wind-Up Order
-------------------------------------
The High Court of Singapore entered an order on Jan. 31, 2025, to
wind up the operations of The Food Chef Consultancy Pte. Ltd.
Maybank Singapore Limited filed the petition against the company.
The company's liquidator is:
Gary Loh Weng Fatt
BDO Advisory Pte Ltd
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
MIRACLE CONCEPT: Court Enters Wind-Up Order
-------------------------------------------
The High Court of Singapore entered an order on Jan. 31, 2025, to
wind up the operations of Miracle Concept Pte. Ltd.
Maybank Singapore Limited filed the petition against the company.
The company's liquidator is:
Gary Loh Weng Fatt
BDO Advisory Pte Ltd
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
TO-GATHER DINING: Creditors' Meeting Set for March 3
----------------------------------------------------
To-Gather Dining Bar Pte. Ltd. will hold a meeting for its
creditors on March 3, 2025, at 11:30 a.m., via Zoom.
Agenda of the meeting includes:
a. to receive a full statement of the company's affairs
together with a list of creditors and the estimated amount
of their claims;
b. to nominate Liquidator(s) or confirm the nomination of
liquidators;
c. to form a committee of inspection of not more than
5 members, if thought fit; and
d. any other business.
Mr. Lau Chin Huat and Mr. Yeo Boon Keong of Technic Inter-Asia were
appointed as provisional liquidators of the company on Feb. 5,
2025.
=====================
S O U T H K O R E A
=====================
MG INSURANCE: Korea Deposit Insurance to File Injunction v. Union
-----------------------------------------------------------------
Maeil Business Newpaper reports that the sale of MG Insurance has
not been able to find a breakthrough for nearly three years due to
opposition from the union. For the sale, Meritz Fire & Marine
Insurance, which was selected as the preferred bidder for the
acquisition, must conduct on-site due diligence, but due to
opposition from the MG non-life union, due diligence cannot be
carried out. In response, the Korea Deposit Insurance Corporation
is expected to take legal measures, including applying for an
injunction against obstruction of business to the union.
According to the financial sector, MG Insurance union and
management held negotiations for about two hours on Feb. 7 on
whether to proceed with due diligence, but eventually failed to
reach an agreement.
At the meeting, the union reportedly stuck to its existing position
of "opposing due diligence." The report says the union reportedly
responded to the forecast and Meritz Fire & Marine Insurance's
request for due diligence data, saying, "We will review it and
decide whether to send it or not." The due diligence was canceled
again as the union did not budge.
In response to continued opposition from the labor union, the Korea
Meteorological Administration plans to consider a provisional
injunction against obstruction of business related to the failure
of due diligence as early as this week. A forecast official said,
"We are preparing to issue a provisional injunction against
obstruction of business related to the failure of due diligence."
Initially, Meritz Fire & Marine Insurance Co. was preparing to
start due diligence, believing that there is a possibility that the
MG insurance union may turn its position. However, the MG Insurance
union has reportedly blocked Meritz Fire & Marine Insurance
employees from entering the office since the selection of the
preferred bidder.
The next round of negotiations has yet to be set, Maeil Business
notes. Critics point out that the acquisition of Meritz Fire &
Marine Insurance may be canceled as the due diligence has been
postponed indefinitely due to continued opposition from the union.
Maeil Business relates that the reason why MG Insurance union
opposes due diligence is that Meritz Fire & Marine Insurance sees
it as a "dangerous acquirer." The union sadi it is difficult to
trust Meritz Fire & Marine Insurance considering its aggressive
business expansion method and history of large-scale
restructuring.
The union is also raising questions about the way it is sold. The
fact that the sale is carried out in an asset debt transfer (P&A)
method, which does not have an obligation to succeed in employment
and can only take superior assets, is disadvantageous to MG
insurance. The union argues that it should take a merger and
acquisition (M&A) method that takes over both assets and
liabilities.
According to Maeil Business, the forecast said that if the sale
fails, it will have no choice but to consider liquidation and
bankruptcy of MG Insurance. Kim Byung-hwan, chairman of the
Financial Services Commission, also said, "There are not many
options left in MG insurance."
If liquidation and bankruptcy are realized, damage to 1.24 million
MG non-insurance subscribers is inevitable, Maeil Business relays.
They receive up to KRW50 million in compensation under the
Depositor Protection Act, but they are in a position to terminate
their insurance contracts.
MG Non-Life Insurance Co. Ltd. provides insurance services. The
Company offers automobile, property damage, casualty, theft, fire,
malpractice, marine, workers compensation, homeowners insurance,
and other insurance services. MG Non-Life Insurance serves clients
in Korea.
[] S. KOREA: FSS Enhances Monitoring of High-Risk Corporations
--------------------------------------------------------------
Chosun Biz reports that the Financial Supervisory Service will
conduct in-depth monitoring of large corporations with a high risk
of potential insolvency. Concerns are growing that major domestic
exporting corporations could suffer severely and deteriorate
financially due to the U.S. government's high tariff policies and
China's dumping exports, which is interpreted as a preemptive
response.
Chosun Biz relates that on Feb. 10, the FSS noted through its '2025
business plan' that it will refine management to early identify
potential risks from corporate debt. The FSS stated it would induce
strict management from key bond banks. After confirming the status
of major debt-related agreement compliance checks, the FSS will
actively encourage improvements if shortcomings are found, linking
assessments of the early warning systems of banks and trends in
selecting potential insolvent corporations to ongoing credit risk
evaluations.
According to Chosun Biz, the FSS will also weekly monitor detailed
trends of construction firms with high risk levels and strengthen
analysis and checks on vulnerable industry corporations through
communication with sector experts. The FSS plans to promote orderly
restructuring for insolvent corporations.
To ensure stable management of household debt, the FSS will
establish a repayment ability-centered review practice of
'borrowing only as much as can be repaid' and focus on qualitative
structural improvements centered on 'partitioning and fixed rates.'
The FSS is preparing for the smooth implementation of the debt
service ratio (DSR) phase three and is advancing the monitoring of
household loan trends, Chosun Biz relays.
The FSS announced it will fundamentally improve the sales practices
and internal control culture within the financial sector, Chosun
Biz relates. To prevent incomplete sales, it will improve selling
practices by ensuring that high-risk financial products like
equity-linked securities (ELS) are 'sufficiently explained and
contracted' to 'suitable' consumers. The FSS will also establish
'selection and evaluation standards for delegated sales GA
(insurance agencies)' to strengthen the control of selling
delegation risks and implement an operational risk assessment
system for insurance companies.
To strengthen internal controls, the FSS will systematically manage
the operational status of the 'accountability structure' introduced
this year for major financial holding companies and banks, as well
as inspect the performance-based compensation systems of financial
companies that could lead to financial accidents, notes the report.
Additionally, the FSS will enhance standards for disciplinary
measures and specify leniency and exemption criteria to improve the
culture of care within organizations. Promotion of whistleblower
activation will also be pursued.
Chosun Biz says the FSS will strengthen soundness supervision to
stabilize the financial markets. The FSS is pushing for the
introduction of liquidity and leverage ratio regulations for bank
holding companies and will establish an 'inspection process' for
key underlying assumptions that significantly affect the evaluation
of insurance company liabilities. Moreover, to enhance the
soundness management of electronic financial service providers such
as electronic payment agency (PG), the FSS will disclose compliance
status with operational guidance standards semi-annually.
Chosun Biz adds that the FSS will also establish a comprehensive
management and supervisory system for real estate finance. It will
strengthen management and regulatory improvements by thoroughly
checking on related household debt, corporate loans, and individual
business loans in high interconnectivity with project financing
(PF). The FSS will ensure the quarterly evaluation system for PF
business sites is firmly established and guide the implementation
of seamless restructuring.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2025. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
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*** End of Transmission ***