/raid1/www/Hosts/bankrupt/TCRAP_Public/250310.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
Monday, March 10, 2025, Vol. 28, No. 49
Headlines
A U S T R A L I A
BRINDABELLA CHRISTIAN: First Creditors' Meeting Set for March 17
DIGITAL CLASSIFIEDS: First Creditors' Meeting Set for March 17
GLORIOUS HEALTH: First Creditors' Meeting Set for March 17
INFRABUILD AUSTRALIA: In Talks With Two Lenders to Save Company
INFRABUILD AUSTRALIA: Sinks to AUD81MM H1 Loss as Debts Balloon
SERIOUSLY DANCE: First Creditors' Meeting Set for March 14
SHARVAIN FACADES: First Creditors' Meeting Set for March 14
C H I N A
COUNTRY GARDEN: Misses Self-Imposed Debt Restructuring Deadline
I N D I A
ABS WHEELS: CRISIL Keeps D Debt Ratings in Not Cooperating
ADITYA HI-TECH: CRISIL Keeps B Debt Ratings in Not Cooperating
ADITYA MULTICARE: CRISIL Keeps B+ Debt Ratings in Not Cooperating
AFEX TECHNOLOGIES: CRISIL Keeps B+ Ratings in Not Cooperating
AGRAWAL MEDICO: CRISIL Keeps B+ Debt Rating in Not Cooperating
AHINSA FLOUR: CRISIL Keeps B Debt Ratings in Not Cooperating
AKR CONSTRUCTION: CRISIL Keeps C Debt Ratings in Not Cooperating
ALLURE CONSUMER: CRISIL Keeps B+ Debt Rating in Not Cooperating
ALLURE TEX: CRISIL Keeps D Debt Ratings in Not Cooperating
ALOK DINESH: CRISIL Keeps B Debt Ratings in Not Cooperating
AMBAY FOODS: CRISIL Keeps B+ Debt Ratings in Not Cooperating
AMBICA CONSTRUCTION: CRISIL Lowers Rating on INR3.47cr Loan to B
AMRFEO PRIVATE: CRISIL Keeps B Debt Ratings in Not Cooperating
ANALOGIC CONTROLS: CRISIL Cuts Rating on INR6.5cr Bank Loan to B
AROCHEM INDUSTRIES: CRISIL Keeps B+ Ratings in Not Cooperating
ATRIA WIND: Ind-Ra Affirms & Withdraws BB Bank Loan Rating
AVE MARIA: CRISIL Lowers Rating on INR5cr Cash Loan to B
BAKERI PROJECTS: Ind-Ra Affirms BB Loan Rating, Outlook Stable
BAKERI URBAN: Ind-Ra Affirms BB NonConvertible Debt Rating
BANKEY BIHARI: Ind-Ra Moves BB- Loan Rating to NonCooperating
BOXOVIA PRIVATE: Ind-Ra Moves BB- Loan Rating to NonCooperating
FERNANDES BROTHERS: CRISIL Reaffirms B- Rating on INR9.85cr Loan
FLEX FOODS: Ind-Ra Cuts Term Loan Rating to BB, Outlook Stable
GROMA INFRASTRUCTURE: Ind-Ra Keeps B+ Rating in NonCooperating
GURUDEVA CHARITABLE: CRISIL Hikes Rating on INR12cr Loan to B+
ISHANI RICE: CRISIL Keeps D Debt Ratings in Not Cooperating
KREYANSH SHIP: CRISIL Reaffirms B+ Rating on INR9.75cr Loan
KSK MAHANADI: CCI Approves JSW Energy's Proposal to Buy Company
LEO MERIDIAN: NCLT OKs Jalavihar Entertainment Acquisition Bid
M/S ANKIT: Ind-Ra Cuts Loan Rating to B+, Outlook Stable
MAHANTH MOTORS: Ind-Ra Moves BB Loan Rating to NonCooperating
MIL INDUSTRIES: Ind-Ra Affirms BB+ Loan Rating, Outlook Stable
MIRA BHAYANDAR: CRISIL Lowers Corporate Credit Rating to B
NECTAR BOTTLING: CRISIL Reaffirms B Rating on INR7.12cr Sec. Loan
NEO POWER: Ind-Ra Keeps B+ Term Loan Rating in NonCooperating
NIFTY LABS: Ind-Ra Keeps BB+ Loan Rating in NonCooperating
NUTRIFRESH FARM: Ind-Ra Keeps BB+ Loan Rating in NonCooperating
PETROMAR ENGINEERED: CRISIL Hikes Rating on INR5cr Loan to B+
RAYBAN SURFACES: CRISIL Assigns B+ Rating to INR24cr Term Loan
SILVERGLADES HOMES: Ind-Ra Withdraws BB+ Bank Loan Rating
SM CORPORATION: Ind-Ra Affirms BB+ Bank Loan Rating
TECHNOSYS INTEGRATED: Ind-Ra Cuts Loan Rating to BB
THENPANDIAN ENERGY: Ind-Ra Assigns BB+ Bank Loan Rating
UDAGIRI SUGAR: Ind-Ra Moves BB+ Loan Rating to NonCooperating
USHA CONSTRUCTIONS: Ind-Ra Affirms BB+ Rating, Outlook Stable
VYAKTA RENEW: CRISIL Assigns B+ Rating to INR150cr Proposed Loan
N E W Z E A L A N D
GLAZE IT: Creditors' Proofs of Debt Due on April 4
INDEPENDENT PROJECT: Creditors' Proofs of Debt Due on April 2
JUICY FESTIVAL: Placed Into Voluntary Liquidation
NGA URI: Court to Hear Wind-Up Petition on March 18
TITAN ACQUISITIONCO: Moody's Affirms B3 CFR, Alters Outlook to Pos.
WB BUILDING: Court to Hear Wind-Up Petition on March 24
YOKE INSULATION: Court to Hear Wind-Up Petition on March 21
S I N G A P O R E
ARMENOR PTE: Commences Wind-Up Proceedings
CORAL CAY: Creditors' Proofs of Debt Due on April 3
NAMURBLACK INVESTMENTS: Creditors' Proofs of Debt Due on April 6
TN ASIA: Creditors' Proofs of Debt Due on April 7
WILMAR KELLOGG: Creditors' Proofs of Debt Due on April 6
S O U T H K O R E A
HOMEPLUS CO: NPS Retrieves Half of KRW612 Billion Investment
S R I L A N K A
SRI LANKA: Reaches Deal With Japan to Restructure US$2.5BB in Debt
- - - - -
=================
A U S T R A L I A
=================
BRINDABELLA CHRISTIAN: First Creditors' Meeting Set for March 17
----------------------------------------------------------------
A first meeting of the creditors in the proceedings of Brindabella
Christian Education Limited will be held on March 17, 2025 at 4:00
p.m. online via MS Teams.
Sam Marsden and Sal Algeri of Deloitte SRT Pty Ltd were appointed
as administrators of the company on March 5, 2025.
DIGITAL CLASSIFIEDS: First Creditors' Meeting Set for March 17
--------------------------------------------------------------
A first meeting of the creditors in the proceedings of Digital
Classifieds Group Pty Ltd will be held on March 17, 2025 at 4:00
p.m. virtually by video conference.
Daniel Peter Juratowitch and Shaun Matthews of Cor Cordis were
appointed as administrators of the company on March 4, 2025.
GLORIOUS HEALTH: First Creditors' Meeting Set for March 17
----------------------------------------------------------
A first meeting of the creditors in the proceedings of Glorious
Health Australia Pty Ltd will be held on March 17, 2025 at 10:30
a.m. via teleconference.
Steven Arthur Gladman and Richard Albarran of Hall Chadwick were
appointed as administrators of the company on March 5, 2025.
INFRABUILD AUSTRALIA: In Talks With Two Lenders to Save Company
---------------------------------------------------------------
The Australian Financial Review reports that InfraBuild, the crown
jewel in British magnate Sanjeev Gupta's crumbling steel-making
empire, is in advanced talks with two lenders to secure a financial
lifeline.
Street Talk reveals Boston-headquartered Gordon Brothers and
private markets investor Alpha Wave Global have been in
negotiations to provide a US$150 million (AUD237 million)
asset-backed lending facility to the steel manufacturer. While the
situation remains fluid, the two firms have inked an exclusivity
agreement with Mr. Gupta, sources said.
About InfraBuild
InfraBuild is Australia's largest and only vertically integrated
electric arc furnace manufacturer and supplier of steel long
products. The company supplies around 2.1 million tonnes per annum
(mtpa) of steel long products across Australia, with most products
supplying the construction steel segment of the market (rebar,
mesh, etc.).
InfraBuild is a private company and is ultimately owned by the GFG
Alliance, a UK-based international industrial, energy, natural
resources and financial services group.
As reported in the Troubled Company Reporter-Asia Pacific in
mid-February 2025, Moody's Ratings has downgraded InfraBuild
Australia Pty Ltd's corporate family rating and backed senior
secured notes rating to Caa2 from Caa1, and maintained the negative
outlook.
The ratings downgrade reflects InfraBuild's rising default risk
given the company's weakening liquidity profile and deteriorating
operating performance, which continue to track below Moody's
expectations. Moody's view the company's capital structure as
unsustainable given its materially high interest burden, which
along with its decline in earnings, will result in ongoing cash
burn over the next 12-18 months. Without a material improvement in
earnings, Moody's expect that InfraBuild will breach its financial
covenants under its asset-backed term loan (ABTL) facility as they
reset in the first half of the fiscal year ending June 2026 (fiscal
2026), and will require waivers or further amendments. 2026), and
will require waivers or further amendments.
The TCR-AP reported in late December, 2024, that Fitch Ratings has
downgraded the Long-Term Issuer Default Rating (IDR) of InfraBuild
Australia Pty Ltd. (InfraBuild) to 'CCC-', from 'CCC'. The rating
on InfraBuild's senior secured US-dollar notes has also been
downgraded to 'CCC+', from 'B-', with a Recovery Rating of 'RR2'.
Fitch rates InfraBuild based on the consolidated profile of its
100% holding company, Liberty InfraBuild Ltd. (InfraBuild Group),
which does not generate any revenue, nor holds any cash or debt.
The downgrade reflects InfraBuild's weaker operational performance
and liquidity, relative to its last review. Fitch estimates the
company could breach the financial covenants under its USD150
million asset-backed term loan (ABTL) facility in 2H25, which could
lead to a payment acceleration from the due date in May 2026 in the
absence of a cure or waiver.
INFRABUILD AUSTRALIA: Sinks to AUD81MM H1 Loss as Debts Balloon
---------------------------------------------------------------
Simon Evans at The Australian Financial Review reports that
InfraBuild, the most profitable business in British industrialist
Sanjeev Gupta's faltering global business, has crashed to a loss of
more than AUD80 million in six months, paying millions of dollars
to cover the legal expenses of the creditors chasing his other
companies for repayment.
According to AFR, the company's finances were disclosed in a
presentation sent to InfraBuild bondholders, which note it is owed
AUD156 million by the Whyalla steelworks, once part of Gupta's
empire and now in the hands of administrators after the South
Australian government seized assets last month.
The accounts show InfraBuild - which runs furnaces in Sydney and
Melbourne and 10 manufacturing mills along the country's east coast
– fell from a AUD40 million profit after tax in the first half of
the last financial year to an AUD81.3 million loss in the six
months of December 31, AFR discloses.
InfraBuild has long been considered the best asset in Gupta's GFG
Alliance portfolio, which once stretched from Europe to the United
States and employed 35,000 people. Most of those steelworks are now
moribund.
According to AFR, InfraBuild chief executive Francisco Irazusta
said the results represented difficult conditions for the industry,
with falling construction activity in China creating a surge in
exports.
"Despite a challenging operating environment marked by softer
demand, macroeconomic headwinds, volatility in commodity spreads
and high overseas imports, our performance reflects that we are at
the bottom of the cycle," AFR quotes Mr. Irazusta as saying.
The accounts show a 9 per cent slump in revenue to AUD2.24 billion,
with earnings before interest and tax down 68 per cent to AUD46
million.
Debt levels have increased by AUD200 million to AUD1.19 billion.
The accounts also showed a substantial one-off cost of AUD16.2
million had been booked, "recognised as one-off significant items
relating to professional fees incurred in relation to creditor
settlement and restructuring expenses," AFR relays.
Mr. Gupta bought InfraBuild and the Whyalla steelworks in 2017 out
of the collapsed Arrium business, AFR recalls. His financial
troubles began after the collapse of his main financier,
Australia's Greensill, in 2021. Credit Suisse, which is now part of
UBS, has been pursuing GFG for US$1.3 billion (AUD2 billion) in
debts.
One of InfraBuild's bondholders, FitzWalter Capital Partners, a
private equity firm run by former Macquarie deal maker Ben Brazil,
is also pursuing the company in New York courts, demanding it
immediately repay more than AUD800 million, says AFR. In its court
filings, FitzWalter said it is concerned that Mr. Gupta intends to
fund payments to GFG's creditors with dividends of distributions
from InfraBuild, in violation of its deal with bondholders.
KordaMentha was appointed administrator of the Whyalla steelworks
on February 19. Earlier last week, it said the company was losing
money partly because it was selling products too cheaply to other
parts of Gupta's business. InfraBuild bought AUD140 million of
steel products and coking coal from the Whyalla steelworks over the
past six months.
KordaMentha's Mark Mentha said earlier last week he would be
looking to renegotiate the sale price of the products to
InfraBuild, AFR adds.
About InfraBuild
InfraBuild is Australia's largest and only vertically integrated
electric arc furnace manufacturer and supplier of steel long
products. The company supplies around 2.1 million tonnes per annum
(mtpa) of steel long products across Australia, with most products
supplying the construction steel segment of the market (rebar,
mesh, etc.).
InfraBuild is a private company and is ultimately owned by the GFG
Alliance, a UK-based international industrial, energy, natural
resources and financial services group.
As reported in the Troubled Company Reporter-Asia Pacific in
mid-February 2025, Moody's Ratings has downgraded InfraBuild
Australia Pty Ltd's corporate family rating and backed senior
secured notes rating to Caa2 from Caa1, and maintained the negative
outlook.
The ratings downgrade reflects InfraBuild's rising default risk
given the company's weakening liquidity profile and deteriorating
operating performance, which continue to track below Moody's
expectations. Moody's view the company's capital structure as
unsustainable given its materially high interest burden, which
along with its decline in earnings, will result in ongoing cash
burn over the next 12-18 months. Without a material improvement in
earnings, Moody's expect that InfraBuild will breach its financial
covenants under its asset-backed term loan (ABTL) facility as they
reset in the first half of the fiscal year ending June 2026 (fiscal
2026), and will require waivers or further amendments. 2026), and
will require waivers or further amendments.
The TCR-AP reported in late December, 2024, that Fitch Ratings has
downgraded the Long-Term Issuer Default Rating (IDR) of InfraBuild
Australia Pty Ltd. (InfraBuild) to 'CCC-', from 'CCC'. The rating
on InfraBuild's senior secured US-dollar notes has also been
downgraded to 'CCC+', from 'B-', with a Recovery Rating of 'RR2'.
Fitch rates InfraBuild based on the consolidated profile of its
100% holding company, Liberty InfraBuild Ltd. (InfraBuild Group),
which does not generate any revenue, nor holds any cash or debt.
The downgrade reflects InfraBuild's weaker operational performance
and liquidity, relative to its last review. Fitch estimates the
company could breach the financial covenants under its USD150
million asset-backed term loan (ABTL) facility in 2H25, which could
lead to a payment acceleration from the due date in May 2026 in the
absence of a cure or waiver.
SERIOUSLY DANCE: First Creditors' Meeting Set for March 14
----------------------------------------------------------
A first meeting of the creditors in the proceedings of Seriously
Dance Australia Pty Ltd will be held on March 14, 2025 at 3:00 p.m.
via virtual meeting only.
Bradd William Morelli and Christopher John Baskerville of Jirsch
Sutherland were appointed as administrators of the company on March
4, 2025.
SHARVAIN FACADES: First Creditors' Meeting Set for March 14
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of Sharvain
Facades Pty Ltd will be held on March 14, 2025 at 11:30 a.m. via
virtual facilities only.
Graeme Beattie of Worrells was appointed as administrator of the
company on March 4, 2025.
=========
C H I N A
=========
COUNTRY GARDEN: Misses Self-Imposed Debt Restructuring Deadline
---------------------------------------------------------------
Bloomberg News reports that Country Garden Holdings has missed a
self-imposed target date to reach a deal on its debt restructuring
plan, as the defaulted builder struggles to gain support from
creditors, according to sources familiar with the matter.
Bloomberg relates that the Chinese property company, which
defaulted on US dollar debt in 2023, told a court in January that
it expected an agreement by the end of February. However, it has
made little progress since with a key group of creditors, the
sources said, asking not to be identified because the matter is
private.
Bloomberg reported last month that the developer was set to miss
the end-February goal. The two sides have been divided over terms
of the overhaul, including the price of mandatory conversion bonds
and debt payment dates, Bloomberg reported in January.
Country Garden has re-engaged Houlihan Lokey and China
International Capital as financial advisers, sources familiar said
on March 3, as it seeks to build creditor support for the
restructuring and stave off liquidation.
According to Bloomberg, Country Garden's next winding-up hearing is
scheduled for May 26, but a judge previously said that the timing
could be accelerated if creditors are not happy with the state of
the talks by the end of February.
About Country Garden
Country Garden Holdings Company Limited (HKEX:2007), an investment
holding company, invests, develops, and constructs real estate
properties primarily in Mainland China. The company operates in two
segments, Property Development and Construction. It develops
residential projects, such as townhouses and condominiums; and car
parks and retail shops. The company also develops, operates, and
manages hotels. In addition, it researches and develops robots;
sells electronic hardware and food; and provides interior
decoration, agriculture, landscape design, investment and
management consulting, cultural activity planning, and real estate
consulting services.
As reported in the Troubled Company Reporter-Asia Pacific in late
February 2024, Kingboard Holdings-backed money lender Ever Credit
on Feb. 27, 2024, filed a winding-up petition against Country
Garden to the Hong Kong High Court for non-payment of a US$205
million loan.
The TCR-AP reported in late March 2024 that Country Garden has
hired Kroll to carry out a liquidation analysis. Kroll, the New
York-headquartered financial advisory firm, is expected to conduct
an independent business review of Country Garden before projecting
a recovery rate for the developer's creditors under a liquidation
scenario, according to Reuters.
The developer defaulted on US$11 billion of offshore bonds last
year and is in the process of an offshore debt restructuring.
=========
I N D I A
=========
ABS WHEELS: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of ABS Wheels
Private Limited (ABS) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 2.25 CRISIL D (Issuer Not
Cooperating)
Cash Credit 0.75 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 2.75 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 4.25 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with ABS for
obtaining information through letter and email dated February 7,
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 ABS, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on ABS
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
ABS continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
Incorporated in July 2013 and promoted by Mr. Arshad Shaikh and his
family members, ABS has a Volkswagen passenger car dealership and
operates a 3S (sales-service-spares) showroom in Solapur,
Maharashtra. The company is the sole authorised Volkswagen dealer
for Solapur, Osmanabad, and Latur; Maharashtra. Commercial
operations began from March 2014.
ADITYA HI-TECH: CRISIL Keeps B Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Aditya
Hi-Tech Cold Storage (AHCS) continue to be 'CRISIL B/Stable Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 0.25 CRISIL B/Stable (Issuer Not
Cooperating)
Term Loan 4.85 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with AHCS for
obtaining information through letter and email dated February 7,
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 AHCS, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AHCS
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
AHCS continues to be 'CRISIL B/Stable Issuer not cooperating'.
Established in 2015 as a partnership firm where business operations
are handled by Mr. Suresh Mali & Mr. Manoj kumar Devda, AHCS
provides cold storage facility at its unit in Banaskantha,
Gujarat.
ADITYA MULTICARE: CRISIL Keeps B+ Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Aditya
Multicare Hospital (AMCH) continue to be 'CRISIL B+/Stable/CRISIL
A4 Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft Facility 4 CRISIL A4 (Issuer Not
Cooperating)
Proposed Cash 3 CRISIL B+/Stable (Issuer Not
Credit Limit Cooperating)
Term Loan 3 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with AMCH for
obtaining information through letter and email dated February 7,
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 AMCH, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AMCH
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
AMCH continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
AMCH is promoted by the Dr. Suresh Naidu and was founded in 2004.
The hospital is based out of Vizag in Andhra Pradesh. It has tie
ups with multiple doctors to provide multi-specialty care.
AFEX TECHNOLOGIES: CRISIL Keeps B+ Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Afex
Technologies Private Limited (ATPL) continue to be 'CRISIL
B+/Stable/CRISIL A4 Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit/ 2.25 CRISIL B+/Stable (Issuer Not
Overdraft Cooperating)
facility
Letter of Credit 1 CRISIL A4 (Issuer Not
Cooperating)
Long Term Loan 11.75 CRISIL B+/Stable (Issuer Not
Cooperating)
Long Term Loan 2.57 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with ATPL for
obtaining information through letter and email dated February 7,
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 ATPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on ATPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
ATPL continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
ATPL is engaged in the manufacturing machined aluminum die casting
and forgings which has application in automotive and heavy
engineering industry.
AGRAWAL MEDICO: CRISIL Keeps B+ Debt Rating in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Agrawal Medico
(AM) continues to be 'CRISIL B+/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with AM for
obtaining information through letter and email dated February 7,
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 AM, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AM is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the rating on bank facilities of AM
continues to be 'CRISIL B+/Stable Issuer not cooperating'.
AM was started in 1988 as a sole proprietorship firm by Mr Dilip
Agrawal in Bhopal, Madhya Pradesh. The firm is a wholesale dealer
of medicines, both ayurvedic and allopathic, in Bhopal for around
52 companies.
AHINSA FLOUR: CRISIL Keeps B Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Ahinsa Flour
Mill Private Limited (AFMPL) continue to be 'CRISIL B/Stable Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 0.5 CRISIL B /Stable (Issuer Not
Cooperating)
Cash Credit 0.5 CRISIL B /Stable (Issuer Not
Cooperating)
Cash Credit 3.5 CRISIL B /Stable (Issuer Not
Cooperating)
Cash Credit 1 CRISIL B /Stable (Issuer Not
Cooperating)
Proposed Cash
Credit Limit 7.5 CRISIL B /Stable (Issuer Not
Cooperating)
Term Loan 0.4 CRISIL B /Stable (Issuer Not
Cooperating)
Term Loan 3 CRISIL B /Stable (Issuer Not
Cooperating)
Term Loan 1 CRISIL B /Stable (Issuer Not
Cooperating)
Term Loan 0.2 CRISIL B /Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with AFMPL for
obtaining information through letter and email dated February 7,
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 AFMPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AFMPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
AFMPL continues to be 'CRISIL B/Stable Issuer not cooperating'.
Incorporated in 2012 and promoted by Mr. Pradeep Bhadora and his
family members, AFMPL processes wheat products such as atta, maida,
suji, rava, and bran under its brands, MP Gold and Swarn Bhog. The
facility in Tikamgarh, Madhya Pradesh, has an installed capacity of
120 tonne per day and is utilised at around 80%.
AKR CONSTRUCTION: CRISIL Keeps C Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of AKR
Construction Limited (AKR) continue to be 'CRISIL C/CRISIL A4
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 29.12 CRISIL A4 (Issuer Not
Cooperating)
Bank Guarantee 48 CRISIL A4 (Issuer Not
Cooperating)
Bank Guarantee 13.13 CRISIL A4 (Issuer Not
Cooperating)
Letter of Credit 3 CRISIL A4 (Issuer Not
Cooperating)
Overdraft Facility 15 CRISIL C (Issuer Not
Cooperating)
Overdraft Facility 5 CRISIL C (Issuer Not
Cooperating)
Overdraft Facility 7.75 CRISIL C (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with AKR for
obtaining information through letter and email dated February 7,
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 AKR, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AKR
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
AKR continues to be 'CRISIL C/CRISIL A4 Issuer not cooperating'.
Established in the early 1990s as a proprietary concern AKR
Construction and later converted into a closely held public company
in 2004, AKR undertakes civil construction works, primarily
irrigation projects in Andhra Pradesh, Telangana, Karnataka, and
Madhya Pradesh.
ALLURE CONSUMER: CRISIL Keeps B+ Debt Rating in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Allure
Consumer Products Private Limited (ACPPL) continues to be 'CRISIL
B+/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 19.8 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with ACPPL for
obtaining information through letter and email dated February 7,
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 ACPPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on ACPPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
ACPPL continues to be 'CRISIL B+/Stable Issuer not cooperating'.
ACPPL set up in October 2016, is engaged into job work of toilet
soaps manufacturing for FMCGs companies. The manufacturing plant is
located at Dehradun.
ALLURE TEX: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Allure Tex
Trend Private Limited (ATTPL) continue to be 'CRISIL D/CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Foreign Bill 11 CRISIL D (Issuer Not
Purchase Cooperating)
Foreign Exchange 0.25 CRISIL D (Issuer Not
Forward Cooperating)
CRISIL Ratings has been consistently following up with ATTPL for
obtaining information through letter and email dated February 7,
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 ATTPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on ATTPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
ATTPL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
ATTPL, incorporated in 2011 in Mumbai, is promoted by Mr. Nirmal
Desai and Mr. Anil Gupta who have been in this industry for a
decade through associate companies. The company started operations
in 2012-13 (refers to financial year, April 1 to March 31). It
manufactures fabrics and ready-made garments.
ALOK DINESH: CRISIL Keeps B Debt Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Alok Dinesh
Chand Sarda (ADCS) continue to be 'CRISIL B/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Loan Against 7.05 CRISIL B/Stable (Issuer Not
Property Cooperating)
Working Capital 2 CRISIL B/Stable (Issuer Not
Facility Cooperating)
CRISIL Ratings has been consistently following up with ADCS for
obtaining information through letter and email dated February 7,
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 ADCS, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on ADCS
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
ADCS continues to be 'CRISIL B/Stable Issuer not cooperating'.
ADCS is engage in trading and grading and sorting of agricultural
commodities. ADCS is owned and managed by Alok Dinesh Chand
Sharda.
AMBAY FOODS: CRISIL Keeps B+ Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Ambay Foods &
Rice Exporters (AFORE) continue to be 'CRISIL B+/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.25 CRISIL B+/Stable (Issuer Not
Cooperating)
Long Term Loan 1.35 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with AFORE for
obtaining information through letter and email dated February 7,
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 AFORE, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AFORE
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
AFORE continues to be 'CRISIL B+/Stable Issuer not cooperating'.
Incorporated in May 2021, company is engaged in the processing and
manufacturing of basmati rice. The company started its commercial
operations in October 2021. The factory is situated in Sangrur,
Punjab and has a manufacturing capacity of 8 tonnes/hour.
AMBICA CONSTRUCTION: CRISIL Lowers Rating on INR3.47cr Loan to B
----------------------------------------------------------------
CRISIL Ratings has revised the ratings on bank facilities of Ambica
Construction Co (ACC) to 'CRISIL B/Stable/CRISIL A4 Issuer not
cooperating' from 'CRISIL BB+/Stable/CRISIL A4+ Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 4 CRISIL A4 (ISSUER NOT
COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
Proposed Long Term 3.47 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
Term Loan 0.4 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
Term Loan 0.38 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
Working Capital 1.75 CRISIL B/Stable (ISSUER NOT
Demand Loan COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with ACC for
obtaining information through letter and email dated February 7,
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 ACC, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on ACC
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
ACC revised to 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'
from 'CRISIL BB+/Stable/CRISIL A4+ Issuer not cooperating'.
ACC, a partnership firm set up in 2004, undertakes civil
construction works such as construction of buildings, roads and
bridges; it is based in Surat, Gujarat. The firm is owned and
managed by Mr Hareshkumar Babulal Patel and Mr Jitendra Madhavlal
Patel.
AMRFEO PRIVATE: CRISIL Keeps B Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Amrfeo
Private Limited (APL) continue to be 'CRISIL B/Stable/CRISIL A4
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bill Purchase 5.3 CRISIL A4 (Issuer Not
Cooperating)
Cash Credit 1 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Long Term 2.17 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 0.12 CRISIL B/Stable (Issuer Not
Cooperating
Term Loan 0.55 CRISIL B/Stable (Issuer Not
Cooperating
Term Loan 0.86 CRISIL B/Stable (Issuer Not
Cooperating
CRISIL Ratings has been consistently following up with APL for
obtaining information through letter and email dated February 7,
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 APL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on APL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
APL continues to be 'CRISIL B/Stable/CRISIL A4 Issuer not
cooperating'.
APL, incorporated in 1994, is owned and managed by Mr Rajeev Kedia
and Ms Komal Kedia. It manufactures 20 different bentonite products
that are used in micro tunnelling, piling, oil drilling, dam
lining, grouting, foundry, iron ore palletisation, paper, animal
feed binders, thrust boring, disinfectants and other processes. The
company has two manufacturing facilities located at Kutch in
Gujarat and Howrah in West Bengal.
ANALOGIC CONTROLS: CRISIL Cuts Rating on INR6.5cr Bank Loan to B
----------------------------------------------------------------
CRISIL Ratings has revised the ratings on bank facilities of
Analogic Controls India Limited (ACIL) to 'CRISIL B/Stable/CRISIL
A4 Issuer not cooperating' from 'CRISIL BB+/Stable/CRISIL A4+
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 6.5 CRISIL A4 (ISSUER NOT
COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
Proposed Overdraft 6.5 CRISIL B/Stable (ISSUER NOT
Facility COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
Secured Overdraft 7 CRISIL B/Stable (ISSUER NOT
Facility COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with ACIL for
obtaining information through letter and email dated February 7,
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 ACIL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on ACIL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
ACIL revised to 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'
from 'CRISIL BB+/Stable/CRISIL A4+ Issuer not cooperating'.
ACIL was set up in 1996 by Mr T V Prasad, Mr K Padmanabham, Mr C
Muralidhar Reddy, and Mr K Prabhakar. BFL completely acquired the
company in August 2017.
ACIL designs and develops onboard and ground electronic systems
mainly used in the defence industry. The company's facility in
Hyderabad is ISO 9001:2008-certified and recognised by the Ministry
of Science and Technology, Government of India.
AROCHEM INDUSTRIES: CRISIL Keeps B+ Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Arochem
Industries Private Limited (AIPL) continue to be 'CRISIL
B+/Stable/CRISIL A4 Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.5 CRISIL A4 (Issuer Not
Cooperating)
Cash Credit 5.75 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Long Term 1.75 CRISIL B+/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with AIPL for
obtaining information through letter and email dated February 7,
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 AIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
AIPL continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
AIPL was originally established as a partnership company in 1962 by
Mr. Suresh Chandra R Gandhi and his family members. In 2014-15, the
firm was reconstituted as a private limited company with the
current name. In the same year, Exochem, based in the UK, acquired
50 per cent of AIPL's shares. AIPL's day-to-day operations are
managed by Mr. Nilesh Gandhi. The company manufactures dye
intermediates (resist salt, metanilic acid, and 3'3' dinitro
diphenyl sulfone) used primarily in the textile industry and to
some extent in the aerospace industry. In 2014-15, the company
commenced manufacturing aniline 25 disulphonic acid. AIPL's
manufacturing facilities are in Vapi (Gujarat).
ATRIA WIND: Ind-Ra Affirms & Withdraws BB Bank Loan Rating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Atria Wind Power
(Chitradurga) Private Limited's (AWPCPL) term loan rating and
simultaneously withdrawn the same as follows:
-- The 'IND BB/Stable' rating on the INR1.453 bil. (reduced from
INR1,702.47 bil.) Term loan due on March 31, 2032 is affirmed
and withdrawn.
Analytical Approach
Ind-Ra assesses the project on a standalone basis, as the presence
of a ring-fenced debt structure ensures prioritization of cash
flows for AWPCPL's debt.
Ind-Ra has analyzed the project at a standalone level while rating
the senior debt. In addition to plain equity, the promoter has
infused compulsorily convertible debentures worth INR300 million in
FY24. The company also has unsecured loans from holding company
worth INR161.80 million. According to the terms of the shareholder
debt shared by management, these instruments do not have any right
to call an event of default and are completely subordinate to the
rated senior debt. The loan agreement also delineates the
subservient nature of the shareholder debt and treats this as an
equity-like instrument. Ind-Ra has excluded the servicing of the
sponsor's unsecured debt obligations while arriving at the ratings.
The inclusion of these funds into the debt category could impact
the rating.
Ind-Ra is no longer required to maintain the ratings, as the agency
has received a no-objection certificate from the lenders and a
withdrawal request from the company. This is consistent with
Ind-Ra's Policy on Withdrawal of Ratings. Ind-Ra will no longer
provide analytical and rating coverage for the company.
Detailed Rationale of the Rating Action
The rating reflects the project's stable operating performance,
backed by the timely receipt of payments from the power off-takers.
The project has sufficient liquidity to create the balance debt
service reserve account (DSRA) as per the terms of the financing
agreement, before any distribution of surplus cash to the sponsor.
However, the rating continues to be constrained by the inherent
risks associated with wind projects, including variations in wind.
Detailed Description of Key Rating Drivers
Moderate to Strong Counterparties: AWPCPL has tied up about 100% of
its capacity with its counterparties, with the largest customer
accounting for 30% of the committed offtake in FY24. The average
receivable days of all the off-takers stood more than 24 days in
FY24 (FY23: 51 days). The overall credit profile of the off-takers
and the receivable days are key rating monitorable.
Moderate Debt Structure: The debt is repayable in over 52
structured quarterly instalments ending March 2032. The project has
standard project finance features including a cash flow waterfall,
and a debt service reserve (DSR) equivalent to two quarters'
principal and interest payments. The company had compulsory
convertible debentures worth INR300 million in FY24, which are
considered subordinate to the rated term loan.
Historical Operating Performance of the Project: The project has a
long operational history of about eight years. The plant's average
net plant load factor (PLF) improved to 29.46% in FY24 (FY23:
28.73%) but deteriorated in the trailing 12 months ended December
2024 to 26.06% due to low wind speed. With the P90 estimate of
31.83%, the project has been underperforming since the commencement
of commercial operations and P90 benchmark is yet to be achieved.
Wind projects are generally susceptible to wind speed, which could
affect the cash flows. Ind-Ra will monitor the PLF trend; if it
continues to be significantly lower than the base case assumption,
the agency will review the ratings. In FY24, the grid availability
and machine availability were 99.73% and 98.88%, respectively.
Reasonable Operating Risk: The project operations and maintenance
is being handled by Vestas Wind Technology India Private Limited.
Ind-Ra considers the wind turbine generators used by the project
with a standard hub height of 110 meters to be proven technology.
Weak Sponsor Profile: Bengaluru-based Atria group is headed by CS
Sunder Raju and K Nagaraju, who belongs to the second generation of
the promoter family. The group has presence in power, education,
hotels and construction/real estate. Atria Brindavan Power Private
Limited (ABPPL), the holding company of the group's solar and wind
assets, had operational renewable projects (wind, solar ground
mounted and solar rooftop) assets of 467MW as of August 2024,
including 120MW of solar and 331MW of wind; with hydro accounting
for the balance. ABBPL's credit profile has weakened, with a delay
in the refinancing of its outstanding non-convertible debentures
due in 3QFY24. As per the management, the group is in discussions
with the existing lenders towards renegotiation of the terms and in
discussions with few investors to raise mezzanine debt to refinance
the outstanding bonds.
Liquidity
Adequate: The project's annual debt service coverage ratio (DSCR)
stood at around 1.05x on account of underperformance in power
generation, and high operations and maintenance cost. However, the
project has a DSRA of INR176.70 million, equivalent to about six
months of debt servicing obligations, in the form of fixed
deposits, at end-December 2024, against the stipulated two-quarter
DSRA requirement, as per the financing documents. The continuous
availability of the two-quarter DSRA is a key rating monitorable.
AWPCPL also had cash and cash equivalents of INR0.10 million, a
mandatory reserve of INR1.00 million and mutual fund or fixed
deposits of INR5.00 million at end-December 2024, subject to
distribution to the sponsor, as part of restricted payments. AWPCPL
had not availed any working capital loan at end-December 2024.
Ind-Ra considers the project's liquidity to be adequate on the back
of the available DSRA and timely receipt of revenue from the
off-takers.
About the Company
AWPCPL operates a wind power generation project of 39.6MW
(18X2.2MW) in Bijapur district, Karnataka. The sponsor Atria Wind
Private Limited holds a 70.00% stake in the project, while the
off-takers together hold the remaining.
AVE MARIA: CRISIL Lowers Rating on INR5cr Cash Loan to B
--------------------------------------------------------
CRISIL Ratings has revised the rating on bank facilities of Ave
Maria Spinning Mills Private Limited (AMSMPL) to 'CRISIL B/Stable
Issuer not cooperating' from 'CRISIL BB-/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Long Term Bank 1.5 CRISIL B/Stable (ISSUER NOT
Facility COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Long Term Loan 2.5 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Working Capital 1 CRISIL B/Stable (ISSUER NOT
Loan COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with AMSMPL for
obtaining information through letter and email dated February 7,
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 AMSMPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
AMSMPL is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the rating on bank
facilities of AMSMPL revised to 'CRISIL B/Stable Issuer not
cooperating' from 'CRISIL BB-/Stable Issuer not cooperating'.
AMSMPL is Incorporated in 1999, Coimbatore (Tamil Nadu)-based
AMSMPL manufactures cotton yarn. The operations are managed by the
promoter, Mr. P Arul Gruz.
BAKERI PROJECTS: Ind-Ra Affirms BB Loan Rating, Outlook Stable
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Bakeri Projects
Private Limited's (BPPL) bank facilities' ratings at 'IND BB'. The
Outlook is Stable.
The detailed rating actions are:
-- INR28.50 mil. (reduced from INR72.80 mil.) Term loan due on
June 30, 2026 affirmed with IND BB/Stable rating; and
-- INR67.20 mil. Bank overdraft is withdrawn.
* Ind-Ra has withdrawn the rating as Ind-Ra has received
confirmation for no-dues outstanding from the banker and the agency
has received a withdrawal request from the issuer. This is
consistent with Ind-Ra's Policy on Withdrawal of Ratings.
Analytical Approach
Ind-Ra has taken a fully consolidated view of BPPL and its group
company Bakeri Residence LLP and its 100% subsidiary Bakeri Urban
Development Private Limited (BUDPL; debt rated at 'IND BB'/Stable),
together referred to as Bakeri group, owing to the strong legal,
operational and financial linkages between them. BPPL has also
provided a corporate guarantee for BUDPL's rated non-convertible
debentures (NCDs).
Detailed Rationale of the Rating Action
The rating affirmation factors in the low sales booking in Bakeri
Group's plotted development scheme projects due to subdued demand;
however, the sales visibility and collection efficiency of the
group remain stable, primarily on account of a continuous inflow of
funds from the newly launched flagship project Stella in GIFT City
in Ahmedabad. The group started this project construction in March
2023 and at end-October 2024, around 20% of construction work was
completed. However, the group has already sold out around 55%
(447,973 square feet (sf)) of its total area of 895,107sf till
October 2024 for INR3,760 million and collected INR1,249 million.
The total project cost is INR4,031 million. The group has raised a
term loan of INR1,000 million for funding the project which has a
moratorium of 42 months. The remaining cost will be covered through
customer advances.
Detailed Description of Key Rating Drivers
Slow-paced Sales Booking in Projects Other Than Stella: Although
the group has recorded adequate sales visibility on account of the
new project launch, sales booking is slow paced in completed
projects namely Serenity Meadows, Sarvesh Apartments, Sakar9,
Serenity Proximus 1, due to the high-quoted prices which are not
being absorbed by the market. Similarly, the ongoing projects
namely Samasta Arcade and Sylvan Golf and Homes are registering
slow sales booking. Separately, Serenity Proximus 2 is stuck due to
ongoing litigation with previous landowners.
High Debt Obligations Likely to Consume High Portion of Customer
Advances: The group has high scheduled debt repayment obligations
of INR555 million and INR562 million in FY26 and FY27,
respectively, along with a finance cost of INR316 million and
INR311 million. These repayments are likely to burn most of the
customer advances, leading to a lower availability of funds for
project completion, as has been seen in the past 12 months.
Furthermore, BUDPL's NCDs along with accrued interest are
redeemable in FY27 for a total value around INR2,875.53 million. As
per the management, these NCDs are fully subscribed by the
promoters and likely to be rolled back without any outflow of
funds.
High Geographical Concentration, Cyclicality and Regulatory Risks:
The group heavily depends on one market – Ahmedabad and
Gandhinagar belt. Furthermore, the Indian real estate industry is
highly cyclical with volatile cash flows. The real estate sector is
exposed to a number of regulatory requirements that are subject to
frequent and unpredictable changes. This leads to confusion,
non-compliance and delays in project execution.
Stable Revenue and Collection Visibility Backed by New Project
Launch: The group's overall sales and collections were at
INR3,311.50 million and INR1,901.56 million, respectively, during
the 12 months ended December 2024. These numbers were primarily
supported by strong sales bookings in the flagship project Stella.
It is a residential project launched in August 2023 at the premium
location of Sabarmati riverfront. This project is at initial stage
(20% completed) and would entail a total cost of around INR4,031
million. The group had already sold out around 55% (447,973sf) of
its total area 895,107sf till October 2024 for INR3,760 million and
collected INR1249 million. Moreover, the group has an unsold ready
inventory of about 193,857 square yards plotted development scheme
& bungalow and 285,004sf commercial & residential units valued at
nearly INR3.32 billion, along with an inventory of ongoing projects
at an estimated value of over INR13.13 billion, which provides
adequate revenue visibility. Ind-Ra expects the group to maintain
the collection velocity as the company liquidates its completed
inventory and receives funds from the sold units of the ongoing
projects in a phased manner.
Low Project Execution Risk; Experienced Promoters: The group faces
low execution risk since many of its projects are already
completed. The company has four ongoing projects (Samasta Arcade at
77.93%, Stella GIFT City at 19.88%, Sujal Apartments at 17.48% and
Sylvan Golf at 46.35%) where on average, only 40% of construction
was completed as on 31 Oct 2024; however, even though there are
sizeable construction costs pending, all the required approvals
have already been obtained. Ind-Ra draws comfort from the
promoters' more than six decades of experience in the real estate
construction business, which has enabled the company to establish a
brand presence. The group has developed over 25 million sf of
plotted development and 17 million sf of constructed properties.
High Completion Status; Diversified Project Mix: The group has
overall high project completion status of around 80% on a weighted
average basis, as most of its projects are 100% completed and have
a ready inventory for sale. There are four ongoing projects, which
are under development with an average completion status of around
40%. The project mix is well diversified with availability of
residential & commercial buildings and plotted developments.
Liquidity
Stretched: At end-October 2024, the group's projects (sold) had
receivables of INR2,915 million and an unsold inventory of
INR14,651million, as against the pending construction cost of
INR4,829 million. The group has total debt repayments of around
INR1,939 million and a finance cost of INR917 million over
FY26-FY28, which pressures its liquidity. The Bakeri group's
available cash and cash equivalent were INR41.85 million in FY24.
The agency expects the liquidity to remain under pressure if the
finished inventory is not liquidated, given the sizeable, committed
construction cost for under construction & new projects, along with
sizeable scheduled debt repayments.
Rating Sensitivities
Negative: Delays in the selling of the ready inventory (completed
project), slow sales in the ongoing projects, a slowdown in project
completion and/or collection, leading to a further pressure on the
liquidity position will be negative for the ratings.
Positive: A ramp-up in the execution of the project Stella, faster
liquidity of the ready inventory (completed project), a significant
increase in the sales realization leading to an improvement in the
liquidity position, could lead to a positive rating action.
Any Other Information
Standalone profile: BPPL had sales and collection velocity of
INR499.85 million in the 12 months ended December 2024. BPPL has
two ongoing projects namely Samasta Arcade and Sujal Apartments
(redevelopment) which are jointly 47.7% completed and 15% sold out.
BPPL has a ready inventory of INR939 million from its completed
projects, which are available for liquidation in the
near-to-midterm. The principal repayment obligation is INR281.59
million in FY25 and INR277.2 million in FY26.
About the Company
BPPL is a real estate development company engaged in residential,
plotted development, and commercial real estate properties. It is
the flagship company of Bakeri Group. Bakeri Group was set up in
1959 and has developed more than 25 million sf of plotted
development and 17 million sf of constructed properties in
Ahmedabad.
BAKERI URBAN: Ind-Ra Affirms BB NonConvertible Debt Rating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Bakeri Urban
Development Private Limited's (BUDPL) debt instruments as follows:
-- INR1.050 bil. Non-convertible debentures*# affirmed with IND
BB/Stable rating; and
-- INR100 mil. Working capital demand loan affirmed with IND BB/
Stable rating.
#As per SEBI Master Circular, in the case of listed or proposed to
be listed debt securities, an unsupported rating is to be disclosed
in cases where there is a presence of a specified support
considerations, even though the instruments do not carry a CE
suffix rating. The unsupported ratings is arrived at without
factoring in the explicit credit enhancement. It helps in
understanding the extent of credit enhancement factored into the
instrument rating.
Analytical Approach
Ind-Ra has taken a fully consolidated view of BUDPL, its group
company Bakeri residence LLP and its holding company Bakeri
Projects Private Limited's (BPPL; debt rated at 'IND BB'/Stable;
holds 100%), owing to the strong legal, operational and financial
linkages among them. BPPL has provided a corporate guarantee for
BUDPL's NCDs.
Detailed Rationale of the Rating Action
The rating affirmation factors in the low sales booking in Bakeri
Group's plotted development scheme projects due to subdued demand;
however, the sales visibility and collection efficiency of the
group remain stable, primarily on account of a continuous inflow of
funds from the newly launched flagship project Stella in GIFT City
in Ahmedabad. The group started this project construction in March
2023 and at end-October 2024, around 20% of construction work was
completed. However, the group has already sold out around 55%
(447,973 square feet (sf)) of its total area of 895,107sf until
October 2024 for INR3,760 million and collected INR1,249 million.
The total project cost is INR4,031 million. The group has raised a
term loan of INR1,000 million for funding the project which has a
moratorium of 42 months. The remaining cost will be covered through
customer advances.
Detailed Description of Key Rating Drivers
Slow-paced Sales Booking in Projects Other Than Stella: Although
the group has recorded adequate sales visibility on account of the
new project launch, sales booking is slow paced in completed
projects namely Serenity Meadows, Sarvesh Apartments, Sakar9,
Serenity Proximus 1, due to the high-quoted prices which are not
being absorbed by the market. Similarly, the ongoing projects
namely Samasta Arcade and Sylvan Golf and Homes are registering
slow sales booking. Separately, Serenity Proximus 2 is stuck due to
ongoing litigation with previous landowners.
High Debt Obligations Likely to Consume High Portion of Customer
Advances: The group has high scheduled debt repayment obligations
of INR555 million and INR562 million in FY26 and FY27,
respectively, along with a finance cost of INR316 million and
INR311 million. These repayments are likely to burn most of the
customer advances, leading to a lower availability of funds for
project completion, as has been seen in the past 12 months.
Furthermore, BUDPL's NCDs along with accrued interest are
redeemable in FY27 for a total value around INR2,875.53 million. As
per the management, these NCDs are fully subscribed by the
promoters and likely to be rolled back without any outflow of
funds.
High Geographical Concentration, Cyclicality and Regulatory Risks:
The group heavily depends on one market – Ahmedabad and
Gandhinagar belt. Furthermore, the Indian real estate industry is
highly cyclical with volatile cash flows. The real estate sector is
exposed to a number of regulatory requirements that are subject to
frequent and unpredictable changes. This leads to confusion,
non-compliance and delays in project execution.
Stable Revenue and Collection Visibility Backed by New Project
Launch: The group's overall sales and collections were at
INR3,311.50 million and INR1,901.56 million, respectively, during
the 12 months ended December 2024. These numbers were primarily
supported by strong sales bookings in the flagship project Stella.
It is a residential project launched in August 2023 at the premium
location of Sabarmati riverfront. This project is at initial stage
(20% completed) and would entail a total cost of around INR4,031
million. The group had already sold out around 55% (447,973sf) of
its total area 895,107sf till October 2024 for INR3,760 million and
collected INR1,249 million. Moreover, the group has an unsold ready
inventory of about 193,857 square yards plotted development scheme
& bungalow and 285,004sf commercial & residential units valued at
nearly INR3.32 billion, along with an inventory of ongoing projects
at an estimated value of over INR13.13 billion, which provides
adequate revenue visibility. Ind-Ra expects the group to maintain
the collection velocity as the company liquidates its completed
inventory and receives funds from the sold units of the ongoing
projects in a phased manner.
Low Project Execution Risk; Experienced Promoters: The group faces
low execution risk since many of its projects are already
completed. The company has four ongoing projects (Samasta Arcade at
77.93%, Stella GIFT City at 19.88%, Sujal Apartments at 17.48% and
Sylvan Golf at 46.35%) where on average, only 40% of construction
was completed as of October 31, 2024; however, even though there
are sizeable construction costs pending, all the required approvals
have already been obtained. Ind-Ra draws comfort from the
promoters' more than six decades of experience in the real estate
construction business, which has enabled the company to establish a
brand presence. The group has developed over 25 million sf of
plotted development and 17 million sf of constructed properties.
High Completion Status; Diversified Project Mix: The group has
overall high project completion status of around 80% on a weighted
average basis, as most of its projects are 100% completed and have
a ready inventory for sale. There are four ongoing projects, which
are under development with an average completion status of around
40%. The project mix is well diversified with availability of
residential & commercial buildings and plotted developments.
Liquidity
Stretched: At end-October 2024, the group's projects (sold) had
receivables of INR2,915 million and an unsold inventory of
INR14,651 million, as against the pending construction cost of
INR4,829 million. The group has total debt repayments of around
INR1,939 million and a finance cost of INR917 million over
FY26-FY28, which pressures its liquidity. The Bakeri group's
available cash and cash equivalent were INR41.85 million in FY24.
The agency expects the liquidity to remain under pressure if the
finished inventory is not liquidated, given the sizeable, committed
construction cost for under construction & new projects, along with
sizeable scheduled debt repayments.
Negative: Delays in the selling of the ready inventory (completed
project), slow sales in the ongoing projects, a slowdown in project
completion and/or collection, leading to a further pressure on the
liquidity position will be negative for the ratings.
Positive: A ramp-up in the execution of the project Stella, faster
liquidity of the ready inventory (completed project), a significant
increase in the sales realization leading to an improvement in the
liquidity position, could lead to a positive rating action.
1) UNSUPPORTED RATING
Ind-Ra has affirmed the unsupported rating at 'IND BB'/Stable.
The unsupported rating is arrived at without factoring in the
explicit credit enhancement. It helps in understanding the extent
of credit enhancement factored into the instrument rating.
The analytical approach, detailed key rating drivers, liquidity and
sensitivities for unsupported rating are the same as that for the
NCD and bank loans ratings.
2) INSTRUMENT COVENANTS
Refer to Annexure II
3) ADEQUACY OF CE STRUCTURE
BPPL is BUDPL's 100% parent and has provided a corporate guarantee
for the rated NCDs. Since the guarantee does meet Ind-Ra's
requirement and does not specify the timeline for invocation to
ensure payment on the due date, Ind-Ra has not considered the same
as an explicit credit enhancement and hence not added the CE suffix
to the NCD rating.
Any Other Information
Standalone profile: BUDPL had sales and collection velocity of
INR465 million in the 12 months ended December 2024. BUDPL has one
ongoing project namely Sylvan Golf & Country homes plots which is
46% completed and 15% sold out. BUDPL has a ready inventory of
INR1,917 million from its completed projects, which are available
for liquidation in the near-to-midterm. The repayment obligation is
INR254 million in FY25 and INR189 million in FY26.
About the Company
BPPL is a real estate development company engaged in residential,
plotted development, and commercial real estate properties. It is
the flagship company of Bakeri Group. Bakeri Group was set up in
1959 and has developed more than 25 million sf of plotted
development and 17 million sf of constructed properties in
Ahmedabad.
BANKEY BIHARI: Ind-Ra Moves BB- Loan Rating to NonCooperating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has revised the Outlook on Shri
Bankey Bihari Polymers (SBBP) bank facilities to Negative from
Stable and has simultaneously migrated the ratings to the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency through phone calls and emails. Thus, the rating is based on
the best available information. Therefore, investors and other
users are advised to take appropriate caution while using these
ratings.
The instrument-wise rating actions are:
-- INR154 mil. Fund-based working capital limit Outlook revised
to Negative; rating migrated to non-cooperating category and
withdrawn with IND BB-/Negative (ISSUER NOT COOPERATING)/IND
A4+ (ISSUER NOT COOPERATING) rating; and
-- INR26 mil. Term loan due on March 31, 2027 Outlook revised to
Negative; rating migrated to non-cooperating category and
withdrawn with IND BB-/Negative (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: Issuer did not co-operate; based on
best available information
Detailed Rationale of the Rating Action
The migration of ratings to the non-cooperating category and
Outlook revision to Negative are in accordance with Ind-Ra's
policy, Guidelines on What Constitutes Non-Cooperation. The
Negative Outlook reflects the likelihood of a downgrade of the
entity's ratings on continued non-cooperation.
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interactions with SBBP while reviewing the
ratings. Ind-Ra had consistently followed up with SBBP over emails
starting December 26, 2024, apart from phone calls. Although, the
issuer has submitted the no default statement until November 2024.
Limitations regarding Information Availability
Ind-Ra is unable to provide an updated forward-looking view on the
credit rating of SBBP, as the agency does not have adequate
information to review the ratings. If an issuer does not provide
timely business and financial updates to the agency, it indicates
weak governance, particularly in 'Transparency of Financial
Information'. The agency may also consider this as symptomatic of a
possible disruption/distress in the issuer's credit profile.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. SBBP has been
non-cooperative with the agency since January 10, 2025.
About the Company
Established in 2019, SBBP is a partnership firm engaged in the
trading of polymers having its registered office in Delhi. Ayush
Gupta and Nikhil Jain are the partners of the firm.
BOXOVIA PRIVATE: Ind-Ra Moves BB- Loan Rating to NonCooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has revised Outlook on Boxovia
Private Limited's bank facilities to Negative from Stable and
simultaneously migrated the rating to the non-cooperating category.
The issuer did not participate in the rating exercise despite
continuous requests and follow-ups by the agency through emails and
phone calls. Therefore, investors and other users are advised to
take appropriate caution while using these ratings. The ratings
will now appear as 'IND BB-'/Negative on the agency's website.
The detailed rating action is:
-- INR850 mil. Term loan due on March 2029 Outlook revised to
Negative and migrated to non-cooperating category with IND
BB-/Negative (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not co-operate; based on
best available information
Detailed Rationale of the Rating Action
The migration of rating to the non-cooperating category and Outlook
revision to Negative are in accordance with Ind-Ra's policy,
Guidelines on What Constitutes Non-Cooperation. The Negative
Outlook reflects the likelihood of a downgrade of the entity's
ratings on continued non-cooperation.
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with Boxovia while reviewing the
ratings. Ind-Ra had consistently followed up with Boxovia over
emails, apart from phone calls since December 2024. However, the
issuer has been submitting its monthly no default statement until
January 2025.
Limitations regarding Information Availability
Ind-Ra is unable to provide an updated forward-looking view on the
credit rating of Boxovia, as the agency does not have adequate
information to review the rating. If an issuer does not provide
timely business and financial updates to the agency, it indicates
weak governance, particularly in 'Transparency of Financial
Information'. The agency may also consider this as symptomatic of a
possible disruption/distress in the issuer's credit profile.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings.
About the Company
Incorporated in December 2017, Boxovia manufactures corrugated
boxes and boards. The company's manufacturing facility located in
Ahmednagar (Maharashtra) has an installed capacity of 72,000 metric
tons per annum.
FERNANDES BROTHERS: CRISIL Reaffirms B- Rating on INR9.85cr Loan
----------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B-/Stable/CRISIL A4'
ratings on the bank facilities of Fernandes Brothers (FB).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.1 CRISIL A4 (Reaffirmed)
Cash Credit/
Overdraft
facility 16.5 CRISIL B-/Stable (Reaffirmed)
Packing Credit 8 CRISIL A4 (Reaffirmed)
Proposed Long Term
Bank Loan Facility 9.85 CRISIL B-/Stable (Reaffirmed)
Working Capital
Term Loan 1.55 CRISIL B-/Stable (Reaffirmed)
The ratings continue to reflect the susceptibility to volatility in
cashew prices, the firm's modest scale of operations amid intense
competition and its below-average financial risk profile. These
weaknesses are partially offset by the extensive experience of the
partners in the cashew industry.
Analytical Approach
CRISIL Ratings has evaluated the standalone business and financial
risk profiles of FB.
Key Rating Drivers & Detailed Description
Weaknesses:
* Susceptibility to volatility in cashew prices: Due to
insufficient supply and high rates of cashews in the domestic
market, the nuts are increasingly being imported. Any major change
in input prices or adverse fluctuations in the foreign exchange
(forex) rates can impact on the overall procurement costs. With
limited bargaining power in the domestic market, the volatility in
input costs is not fully passed on to the customers. Hence, the
operating margin of the firm has remained modest and has been
showing a declining trend in the three years through fiscal 2024.
* Modest scale of operations amid intense competition: The firm has
a modest scale of operations, as reflected in its revenue of
INR70.53 crore in fiscal 2024. Furthermore, the firm is exposed to
intense competition in the cashew industry, with several organised
and unorganised players in the domestic market.
* Below-average financial risk profile: The financial risk profile
is below-average, as indicated by the leveraged capital structure
and modest debt protection metrics. The capital structure is
leveraged as indicated by high gearing of 2.99 times as on March
31, 2024, while the networth was modest at INR7.84 crore. Debt
protection metrics were weak as reflected in the interest coverage
ratio of 0.38 time and net cash accrual to adjusted debt (NCAAD)
ratio of 0.01 time, in fiscal 2024. Due to low accrual, the
financial risk profile is expected to remain at a similar level.
Strength:
* Extensive industry experience of the partners: The partners have
experience of over four decades in the cashew industry. This has
given them an understanding of the market dynamics and enabled them
to establish relationships with suppliers and customers, especially
in the domestic market.
Liquidity: Poor
Bank limit utilisation was high at 91.65% on average for the 12
months through November 2024. Annual cash accrual is expected to be
insufficient to cover yearly term debt obligation of INR0.80-0.92
crore over the medium term. The current ratio was healthy at 1.29
times as on March 31, 2024. The partners are likely to extend
equity and unsecured loans to meet the working capital requirement
and debt obligations.
Outlook: Stable
CRISIL Ratings believes that FB will benefit over the medium term
from the extensive industry experience of its partners.
Rating sensitivity factors
Upward factors
* Improvement in liquidity, especially Net Cash Accrual/Repayment
obligation of above 1 time
* Increase in revenue or operating margin, leading to high cash
accrual
* Improvement in the financial risk profile
Downward factors
* Decline in revenue or operating margin going below 1% resulting
in low cash accrual
* Substantial increase in the working capital requirement, or
large, debt-funded capital expenditure, weakening the financial
risk profile
* Delays in debt servicing
Incorporated as a partnership firm in 2006, FB imports and
processes raw cashews. It is owned and managed by Mr Walter D Souza
and his family.
FLEX FOODS: Ind-Ra Cuts Term Loan Rating to BB, Outlook Stable
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Flex Foods
Limited's (FFL) bank facilities to 'IND BB' from IND BB+. The
Outlook is Stable.
The detailed rating actions are:
-- INR400 mil. Fund-based working capital limits Long-term rating
downgraded; short-term rating affirmed with IND BB/Stable/IND
A4+ rating;
-- INR1,268.3 bil. (reduced from INR1.620 bil.) Term loan due on
March 31, 2030 downgraded with IND BB/Stable rating; and
-- INR50 mil. Non-fund-based working capital limits Long-term
rating downgraded; short-term rating affirmed with IND BB/
Stable/IND A4+ rating.
Detailed Rationale of the Rating Action
The downgrade reflects the deterioration in FFL's operating
profitability, credit metrics and liquidity over FY24 and 1HFY25.
However, the ratings are supported by its strong parentage
evidenced by the inflow of unsecured loans over the past two years
as well as a further infusion of INR244.7 million by the group
companies/ultimate promoters in 1HFY25.
Detailed Description of Key Rating Drivers
Lower-than-expected Revenue Generation: FFL's FY23-FY24 performance
was lower than Ind-Ra's expectations, due to a delay in the
stabilization of its Krishnagiri unit (Tamil Nadu) and a dip in
demand in the export market, especially in Europe. The company's
revenue increased marginally to INR1,200 million in FY24 (FY23:
INR1,134.5 million; FY22: INR1,104.20 million), partly due to
higher volumes and realizations. The company's Krishnagiri unit had
commenced operations partially in October 2022 with four chambers,
and later on added two chambers in April 2023. However, the new
unit has yet to register any significant growth, due to lower
demand from the European market, which contributed over 60% to
FFL's total revenue in FY24.
The company recorded revenue of INR763.6 million in 1HFY25,
supported partially by improving realizations. The stabilization of
the new unit and an improvement in the turnover in the near- to
medium term will remain key monitorable.
Decline in Operating Profitability: FFL reported operating losses
of INR21.8 million in FY24 (FY23: profit of INR111.4 million; FY22:
INR182.7 million), due to the fixed cost incurred for the
Krishnagiri unit and lower capacity utilizations despite improved
realizations. The company continues to incur higher fixed costs at
its Krishnagiri unit. Ind-Ra expects the margin to improve in the
near to medium term with the likely stabilization of the operations
of the Krishnagiri unit.
Weak Credit Metrics: FFL's credit metrics weakened considerably
over the past two years owing to the dip in its EBITDA levels
amidst low-capacity utilizations and debt-funded capex towards
increasing capacity at its Krishnagiri unit. The net leverage (net
debt/EBITDA) increased to 20.98x in FY23 (FY22: 7.35x) and the
interest coverage (EBITDA/interest cost) reduced to 0.69x (7.50x),
due to the company reporting operating losses during FY24. The net
leverage and interest coverage remained subdued during 1HFY25 as
well amidst continuing operating losses. Ind-Ra expects the credit
metrics to remain stressed in the near term improve gradually over
the medium term, helped by the likely stabilization of its Tamil
Nadu facility and a pick-up in its revenue with improving capacity
utilizations and better absorption of fixed costs.
Stretched Liquidity: Please refer to liquidity section below.
Elongated Net Working Capital Cycle: The company's operating cycle
elongated to 265 days in FY24 (FY23: 245 days) due to increased
inventory days of 228 (216) and higher debtor days of 115 (96). The
company provides around 90 days of credit period to its customers
and relatively higher sale at the year-end optically inflates the
debtor days of 90-115 days. The creditors also provide a similar
credit period of 60-90 days. However, its inventory days remain
elevated at 200-220 days due to seasonality for some products
resulting in higher stocking combined with higher portion of
finished goods at year-end to cater increased demand in 4Q and 1Q.
Overall, the management expects the working capital cycle to trail
around similar level.
Customer Concentration Risk: FFL's top customers accounted for
around 42% in 1HFY25 its total revenue (FY23: 51%; FY22: 56%).
However, FFL's longstanding relationships with its key customers
mitigate the concentration risk to some extent.
Industry Risks: The company remains vulnerable to agro-climatic
risk, as well as seasonality in production of fruits, vegetables
and herbs. Furthermore, FFL is exposed to risks arising from
regulatory changes and adverse forex fluctuations as it derives a
major portion of its revenue from Europe and the US.
Strong Parentage: FFL is a UFlex group company, with Uflex
Limited ('IND AA-'/Stable) holding a 47.15% stake at FYE24. The
support from the strong parent is evident from the inflow of
unsecured loans over past two years as well as further infusion of
INR244.7 million by group companies/ ultimate promoters in 1HFY25.
Ind-Ra expects the group to continue to offer support to FFL to
meet its debt servicing requirements. As of March 31, 2024, Uflex
maintained unsecured loans worth INR107.5 million and Ultimate
Flexipack Limited maintained unsecured loans worth INR540 million;
another promoter company also engaged in packaging solutions
Liquidity
Stretched: FFL's average use of the fund-based working capital
limits stood around 92.2%for 12 months ended December 2024 with
similar utilization levels in succeeding month in the form of
packing credit facility and bill discounting. The company's free
cash flows remained negative at INR281.4 million in FY24 (FY23:
negative INR1,002.7 million; FY22: negative INR1,318 million), due
to muted operational results in FY24 and significant capex of
INR1,900 million incurred during the FY22-FY23 against modest
profitability. The company maintained unencumbered cash balance of
INR9.3 million at FYE24 (FYE23: INR22.2 million), against scheduled
repayments of INR145 million for FY25 and INR218 million each for
FY26-FY28, for which it might require support from the group
companies. As of September 30, 2024, the company received
additional funding support of about INR244.7 million from related
group entities in the form of unsecured loans to support the
operations, with no defined repayment obligation.
Rating Sensitivities
Negative: The inability to improve the scale of operations and the
profitability, leading to further deterioration in the credit
metrics and liquidity, all on a sustained basis, would be negative
for the ratings.
Positive: A significant increase in the scale of operations and the
operating profitability, following the stabilization of operations
at the Krishnagiri unit, resulting in an improvement in credit
metrics and liquidity, all on a sustained basis, would be positive
for the ratings.
About the Company
FFL is a UFlex group company, with Uflex holding 47.15% stake as of
FY23. FFL is engaged in the cultivation, processing and canning of
mushrooms and processing of culinary herbs, fruits and vegetables.
It has two manufacturing facility in Dehradun, Uttarakhand and
Krishnagiri, Tamil Nadu for freeze drying, air drying, individually
quick-frozen processing. The unit in Krishnagiri has commenced
operations partially in October 2022 with four chambers and an
additional two chambers were added in April 2023. The company has
its own captive mushroom cultivation unit, while it procures other
items primarily from nearby areas through contract farming.
GROMA INFRASTRUCTURE: Ind-Ra Keeps B+ Rating in NonCooperating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Groma
Infrastructure Limited's (GIL) bank facilities' ratings in the
non-cooperating category and has simultaneously withdrawn the same.
The detailed rating actions are:
-- INR760 mil. Non-fund-based working capital facility#
maintained in non-cooperating category and withdrawn;
-- INR20 mil. Proposed fund-based working capital limits*
maintained in non-cooperating category and withdrawn; and
-- INR220 mil. Fund-based working capital facility* maintained in
non-cooperating category and withdrawn.
*Maintained at 'IND B+/Negative (ISSUER NOT COOPERATING)' before
being withdrawn
#Maintained at 'IND A4 (ISSUER NOT COOPERATING)' before being
withdrawn
Detailed Rationale of the Rating Action
The rating has been maintained in the non-cooperating category
before being withdrawn because the issuer did not participate in
the rating exercise despite repeated requests by the agency through
phone calls and emails, and has not provided information about
latest audited financial statement, sanctioned bank facilities and
utilization, business plans and projections for the next three
years, and management certificate. This is in accordance with
Ind-Ra's policy of 'Guidelines on What Constitutes
Non-cooperation'.
Ind-Ra is no longer required to maintain the ratings, as the agency
has received a request for withdrawal of ratings, no-objection
certificate and no-dues certificate issued by the bankers. This is
consistent with Ind-Ra's Policy on Withdrawal of Ratings.
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interactions with GIL while reviewing the
rating. Ind-Ra had consistently followed up with GIL over emails,
apart from phone calls. The issuer has also not been submitting the
monthly no default statement.
Limitations regarding Information Availability
Ind-Ra is unable to provide an updated forward-looking view on the
credit rating of GIL, as the agency does not have adequate
information to review the rating. If an issuer does not provide
timely business and financial updates to the agency, it indicates
weak governance, particularly in 'Transparency of Financial
Information'. The agency may also consider this as symptomatic of a
possible disruption/distress in the issuer's credit profile.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. GIL has been
non-cooperative with the agency since August 2022.
About the Company
Incorporated in 2003, GIL (erstwhile MVPR Infrastructure Limited)
is a civil works contractor engaged in executing water supply works
(lift irrigation) contracts and electrical works contracts in
Karnataka, Telangana and Andhra Pradesh.
GURUDEVA CHARITABLE: CRISIL Hikes Rating on INR12cr Loan to B+
--------------------------------------------------------------
CRISIL Ratings has upgraded its rating on the long-term bank
facilities of Gurudeva Charitable Trust (GCT) to 'CRISIL B+/Stable'
from 'CRISIL B/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 7 CRISIL B+/Stable (Upgraded
Bank Loan Facility from 'CRISIL B/Stable')
Secured Overdraft 12 CRISIL B+/Stable (Upgraded
Facility from 'CRISIL B/Stable')
Term Loan 8 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
The upgrade reflects sustained improvement in GCT's business risk
profile supported by healthy operating performance. In the three
years ended fiscal 2024, operating income grew at a compound annual
growth rate of 29%, supported by an increase in course fees and
hospital revenue through growth in average revenue per occupied bed
(ARPOB) with stable occupancy of 60-65%.
Improvement in debt protection metrics strengthened the financial
risk profile over the period with interest coverage ratio of 6.43
times in fiscal 2024. Liquidity is supported by healthy net cash
accrual, expected over INR12 crore per fiscal, which will be
adequate against debt obligation of INR4.5-6 crore over the medium
term. Timely realisation of fee income, along with completion of
capital expenditure (capex) within the budgeted cost and timeline,
will be monitorable.
The rating continues to reflect GCT's modest scale of operations,
geographic concentration in revenue, susceptibility to regulatory
changes and weak capital structure. These weaknesses are partially
offset by the extensive experience of the trustees in the education
industry and adequate debt protection metrics.
Analytical Approach
CRISIL Ratings has evaluated the standalone business and financial
risk profiles of GCT.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations and geographical concentration in
revenue: The entire revenue is derived from a single medical
college and hospital in Kerala, resulting in small scale of
operations and geographical concentration risk. Revenue remains
small despite increasing to INR125.58 crore in fiscal 2024 from
INR90.42 crore in fiscal 2023.
* Susceptibility to regulatory changes: The education sector is
highly regulated and compliance with specific operational and
infrastructure norms set by regulatory bodies such as the Medical
Council, is essential. Thus, regular investment in the workforce
and infrastructure is required and approvals are a must even to set
up new courses or increase the number of seats for any course.
* Weak capital structure: The capital structure is leveraged as
reflected in high debt and low networth. Adjusted gearing was
negative 7.23 times as on March 31, 2024. The capital structure is
expected to marginally improve over the medium term with steady
accretion to reserve.
Strength:
* Extensive experience of the trustees and their fund support: The
trustees have extensive experience in the education and medical
sectors. The society has been able to establish its brand in a
short span of time, backed by focus on quality education and
hospital services. Moreover, need-based funding support from the
trustees in the form of unsecured loan of INR17.39 crore as on
March 31, 2023, is expected to continue.
Liquidity: Stretched
Bank limit utilisation was 42% on average for the 12 months ended
January 31, 2025. Annual cash accrual is expected to be over INR12
crore against yearly term debt obligation of INR4.5-6 crore over
the medium term. In addition, it will cushion liquidity. Current
ratio was low at 0.47 time as on March 31, 2024.
Outlook: Stable
CRISIL Ratings believes GCT will continue to benefit from the
extensive experience of its trustees.
Rating sensitivity factors
Upward factors:
* Increase in revenue and sustenance of operating profitability
over 12%, leading to high net cash accrual
* Improvement in the financial risk profile and capital structure
Downward factors
* Any large capex, weakening the financial risk profile
* Decline in revenue or profitability, leading to net cash accrual
below INR3 crore
GCT, based in Ernakulam, was set up in 2003 by a group of
non-resident Indians and businessmen from Kerala. The trust runs a
medical college and hospital at Ernakulam under the name of Sree
Narayana Institute of Medical Sciences, which offers MBBS course.
ISHANI RICE: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Ishani Rice
Mills Private Limited (IRMPL; formerly known as Agnibina Rice Mills
Private Limited) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.2 CRISIL D (Issuer Not
Cooperating)
Cash Credit 1.8 CRISIL D (Issuer Not
Cooperating)
Proposed Bank 0.8 CRISIL D (Issuer Not
Guarantee Cooperating)
Proposed Cash 2.7 CRISIL D (Issuer Not
Credit Limit Cooperating)
Term Loan 4.5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with IRMPL for
obtaining information through letter and email dated February 7,
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 IRMPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on IRMPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
IRMPL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
IRMPL was incorporated in 2013 and commenced operation in April
2018. The company is owned and managed by Mr Nazrul Islam Miya and
his family members. It operates a rice mill at Burdwan, West Bengal
with an installed capacity of 24,000 metric tonnes per annum.
KREYANSH SHIP: CRISIL Reaffirms B+ Rating on INR9.75cr Loan
-----------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable/CRISIL A4'
ratings on the bank facilities of Kreyansh Ship Recycling LLP
(KSRLLP).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 9.75 CRISIL B+/Stable (Reaffirmed)
Credit Exposure 1.3 CRISIL A4 (Reaffirmed)
Limits/Loan
Exposure Risk
Limits
Letter of Credit 55.25 CRISIL A4 (Reaffirmed)
Proposed Non
Fund based limits 8.95 CRISIL A4 (Reaffirmed)
Standby Line
of Credit 9.75 CRISIL A4 (Reaffirmed)
The ratings continue to reflect the firm's large working capital
requirement; susceptibility to cyclicality in a fragmented
industry, volatility in scrap prices and foreign exchange (forex)
rates; and exposure to regulatory and environmental risks. These
weaknesses are partially offset by the extensive experience of the
partners in the ship breaking industry and the advantageous
location of the firm's yard.
Analytical Approach
CRISIL Ratings has considered the standalone business and financial
risk profiles of KSRLLP.
Key Rating Drivers & Detailed Description
Weaknesses:
* Large working capital requirement: Operations are working capital
intensive owing to sizeable inventory, as the firm will procure a
ship in one go while realisation through sales may take 6-9 months.
KSRLLP is expected to meet its working capital requirement through
letter of credit from suppliers, unencumbered funds and/or
unsecured loans from the partners.
* Susceptibility to cyclicality and to volatility in scrap prices
and forex rates: The industry is cyclical, and the viability of the
ship breaking business is inversely correlated to the international
freight index. Domestic players face competition from shipbreakers
in China, Bangladesh and Pakistan. Furthermore, ship purchases are
in foreign currency (US dollars) while realisations are in domestic
currency (Indian rupee). Also, scrap rates may fluctuate over the
period of ship breaking, which impacts profitability.
* Exposure to regulatory and environmental risks: The ship breaking
industry is highly regulated with strict working and safety
standards to be maintained for labourers and environmental
compliance. The government of India enacted the Recycling of Ships
Act, 2019. This act provides the regulations for recycling ships by
setting certain standards and lays down the statutory mechanism for
enforcement of the standards and related matters. Any adverse
changes in the regulations or events may affect the business.
Strengths:
* Extensive industry experience of the partners: The partners'
experience of over two decades in the ship breaking industry,
understanding of the market dynamics and healthy relationships with
suppliers and customers will continue to support the business.
* Advantageous location of the yard: The firm operates in the Alang
ship recycling yard, which has many re-rolling mills and steel
profile cutters and therefore has a ready market for its products.
Also, 90% of India's ship breaking activities take place at Alang;
it is the country's largest ship breaking cluster. The unique
geographical features of the region include high tidal range, wide
continental shelf, adequate slope and mud-free coast. These
conditions are ideal for a variety of ships to be beached easily
during high tide. It accommodates nearly 140 plots spread over 10
km along the coast.
Liquidity: Poor
Bank limit utilisation was low at 1.53% for the 13 months through
January 2025. Cash accrual, expected to be INR0.3-0.6 crore per
annum, will be sufficient against nil term debt obligation over the
medium term.
Current ratio was healthy at 5.75 times as on March 31, 2024. Low
gearing and moderate networth support financial flexibility and
will cushion the liquidity against adverse conditions or downturns
in the business.
Outlook: Stable
CRISIL Ratings believes KSRLLP will continue to benefit from the
extensive experience of the partners.
Rating sensitivity factors
Upward factors
* Timely stabilisation of operations and significant increase in
revenue and profitability
* Healthy operating margin with net cash accrual more than INR1
crore
Downward factors
* Cash accrual of less than INR10 lakh
* Further stretch in the working capital cycle weakening the
financial risk profile and liquidity
Set up in December 2022, KSRLLP undertakes ship breaking/ship
recycling and deals in ferrous, non-ferrous metals and scrap
materials. The firm operates a ship breaking plot at Alang Ship
Breaking Yard in Bhavnagar (Gujarat), which was recently acquired
by Mr Prakashkumar Babulal Doshi and his family members. Operations
commenced from January 2023.
KSK MAHANADI: CCI Approves JSW Energy's Proposal to Buy Company
---------------------------------------------------------------
The Economic Times reports that the Competition Commission of India
on March 4 cleared JSW Energy's proposal to acquire KSK Mahanadi
Power Company. "The proposed transaction involves the acquisition
of 100% shareholding in KMPCL (which is currently undergoing CIRP
initiated under the Insolvency and Bankruptcy Code, 2016), by JSWEL
(through JSW Thermal)," the regulator said in a release.
JSW Energy Ltd (JSWEL), a listed company, through its subsidiaries
is engaged in power generation, power transmission, power trading,
coal mining, and power equipment manufacturing.
JSW Thermal Energy One Ltd (JSW Thermal) is a newly formed wholly
owned subsidiary of JSWEL.
In January this year, JSW Energy said it has emerged as a
successful applicant to acquire KSK Mahanadi Power Company, which
owns 3,600 MW thermal power plants, under insolvency proceedings,
ET recalls.
Incorporated in 2009, KSK Mahanadi Power Company Ltd (KMPCL) owns a
3,600 MW thermal power plant located in Chhattisgarh.
The National Company Law Tribunal (NCLT), Hyderabad, on April 30,
2024, admitted Aditya Birla ARC's initiation of insolvency process
petition against the personal guarantees given by the promoters of
KSK Mahanadi Power Company K.A. Sastry and S. Kishore.
LEO MERIDIAN: NCLT OKs Jalavihar Entertainment Acquisition Bid
--------------------------------------------------------------
The Economic Times reports that the Hyderabad bench of the National
Company Law Tribunal (NCLT) approved the Jalavihar Entertainment
Pvt Ltd (JEPL)-led consortium's acquisition of Leo Meridian
Infrastructure Projects & Hotels Ltd. The defunct company owns
Leonia Resorts in the Shamirpet area of Hyderabad.
According to ET, the company has admitted liabilities of INR2,218
crore, whereas the successful bidder proposed paying about INR237
crore to acquire the company through an insolvency resolution
process. The successful bidder also proposed to infuse INR90 crore
as working capital and renovation work for the resort.
"All crystallised liabilities and unclaimed liabilities of the
corporate debtor as on the date of this order shall stand
extinguished on the approval of this resolution plan," said a
division bench of judicial member Rajeev Bhardwaj and technical
member Sanjay Puri, ET relays.
ET relates that the tribunal, in its order of February 26, also
clarified that if the successful bidder fails to pay the amount as
envisaged in the 'comprehensive resolution plan' to the
stakeholders within the timeline fixed in the plan, the entire
amount paid by the successful bidders would be forfeited.
Before the tribunal's approval, the company's secured creditors
approved the resolution plan, with 100% voting in favour of the
JEPL-led consortium, ET says. The defunct hospitality company's
fair market value and liquidation value are INR397.13 crore and
INR109.37 crore, respectively.
The company's major secured financial creditors include Bank of
Baroda (INR606 crore), Andhra Bank (later merged with Union Bank of
India) (INR422 crore), Union Bank of India (INR273 crore), Bank of
India (INR187 crore) and Omkara ARC (INR90 crore), ET discloses.
BDO India's Insolvency Entity BDO Restructuring Advisory helped the
company's resolution professional with Leo Meridian Infrastructure
Projects and Hotels Ltd resolution, ET notes.
Leo Meridian Infrastructure Projects & Hotels Ltd commenced
insolvency proceedings on April 9, 2019.
M/S ANKIT: Ind-Ra Cuts Loan Rating to B+, Outlook Stable
--------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded M/S Ankit
International's (AI) bank facilities to 'IND B+' from 'IND BB-'
with a Stable Outlook as follows:
-- INR450 mil. Fund-based working capital limit downgraded with
IND B+/Stable/IND A4 rating.
Detailed Rationale of the Rating Action
The downgrade reflects the deterioration in AI's credit metrics and
EBITDA margins in FY24. The rating also reflects its continued
small scale of operations. Ind-Ra expects the credit metrics and
EBIDTA margins to improve slightly in FY25. The rating is supported
by the proprietor's more than a decade experience in the trading
business.
Detailed Description of Key Rating Drivers
Deterioration in Credit Metrics: In FY24, AI's credit metrics
deteriorated due to a decline in the EBIDTA to INR12.49 million
(FY23: INR17.76 million). The gross interest coverage (operating
EBITDA/gross interest expenses) deteriorated to 0.91x in FY24
(FY23: 2.93x) and the net leverage (total adjusted net
debt/operating EBITDAR) increased to 30.13x (0.72x). In FY25,
Ind-Ra expects an improvement in the credit metrics due to an
expectation of an improvement in the EBITDA.
Continued Small Scale of Operations: AI's scale of operations
remained small with its revenue increasing to INR1,776 million in
FY24 (FY23: INR977 million), due to an increase in demand for steel
pipes. During 9MFY25, AI booked revenue of INR933.85 million. In
FY25, Ind-Ra expects the revenue to decline on a yoy basis, due to
reduced trading of steel pipes from 2QFY25.
Continued Modest EBIDTA Margin: AI's EBIDTA margins remained
modest and fell to 0.7% in FY24 (FY23: 1.8%), due to unfavorable
movements in the steel prices and a surge in freight charges. The
return on capital employed was 2.1% in FY24 (FY23: 3.4%). In FY25,
Ind-Ra expects the EBIDTA margins to improve, due to the
management's plan to reduce its focus on steel pipe trading, which
yields lower margins than the trading of other products such as
scrap and licenses.
Poor Liquidity: Please refer to the liquidity section below.
Proprietor's Experience: The ratings are supported by the
proprietor's experience of more than a decade in the trading
industry, leading to established relationships with customers as
well as suppliers.
Liquidity
Poor: AI's average maximum utilization of the fund-based limits was
97.87% and that of the non-fund-based limits was 15.20% during the
12 months ended December 2024, with instances of overutilization up
to six days. The cash flow from operations turned negative at
INR304.77 million in FY24 (FY23: INR219.02 million), on account of
increased working capital requirements. Consequently, the free cash
flow turned negative at INR304.80 million in FY24 (FY23: INR218.86
million). The net working capital cycle improved to 54 days in FY24
(FY23: 70 days), due to a reduction in the inventory days to 47
days (FY23: 56 days). The cash and cash equivalents stood at
INR0.20 million at FYE24 (FYE23: INR1.63 million). The firm does
not have any repayment obligations. AI does not have any capital
market exposure and relies on a single bank to meet its funding
requirements.
Rating Sensitivities
Negative: A decline in the scale of operations, leading to
deterioration in the overall credit metrics and further pressure on
the liquidity position, could lead to a negative rating action.
Positive: A substantial increase in the scale of operations, along
with an improvement in the credit metrics with the interest
coverage exceeding 1.4x, and an improvement in the liquidity
profile, all on a sustained basis, could lead to a positive rating
action.
About the Company
AI was established in 2010 as a proprietorship firm by Pranav Jain.
The firm is engaged in the importing and trading of ferrous and
non-ferrous products such as steel pipes, scrap, sponge iron, and
HR coils, among others. It is also engaged in license trading and
has started providing consultation services from FY25. The firm is
located at Taloja, Navi Mumbai.
MAHANTH MOTORS: Ind-Ra Moves BB Loan Rating to NonCooperating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has revised the Outlook on
Mahanth Motors' (MM) bank facilities to Negative from Stable and
migrated the ratings to the non-cooperating category. The ratings
are simultaneously withdrawn on the issuer's request.
The detailed rating actions are:
-- INR210 mil. Fund-based working capital limit* Outlook revised
to Negative; rating migrated to non-cooperating category and
withdrawn; and
-- INR25.20 mil. Term loan# due on March 31, 2029 Outlook
revised to Negative; rating migrated to non-cooperating
category and withdrawn.
*Migrated to 'IND BB'/Negative/'IND A4+ (ISSUER NOT COOPERATING)'
before being withdrawn.
# Migrated to 'IND BB/Negative (ISSUER NOT COOPERATING)' before
being withdrawn.
Detailed Rationale of the Rating Action
The Outlook revision to Negative indicates the non-cooperation
could be symptomatic of possible disruption/distress in the
issuer's business. The rating has been migrated to the
non-cooperating category before being withdrawn because the issuer
did not participate in the rating exercise despite repeated
requests by the agency through phone calls and emails, and has not
provided information about latest audited financial statement,
sanctioned bank facilities and utilization, business plans and
projections for the next three years, and management certificate.
This is in accordance with Ind-Ra's policy of 'Guidelines on What
Constitutes Non-cooperation'.
Ind-Ra is no longer required to maintain the ratings, as the agency
has received a request for withdrawal of ratings from the issuer
and a no-objection certificate from the bankers. This is consistent
with Ind-Ra's Policy on Withdrawal of Ratings.
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with MM while reviewing the
ratings. Ind-Ra had consistently followed up with MM over emails,
apart from phone calls.
Limitations regarding Information Availability
Ind-Ra is unable to provide an updated forward-looking view on the
credit rating of MM, as the agency does not have adequate
information to review the ratings. If an issuer does not provide
timely business and financial updates to the agency, it indicates
weak governance, particularly in 'Transparency of Financial
Information'. The agency may also consider this as symptomatic of a
possible disruption/distress in the issuer's credit profile.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings.
About the Company
MM, an authorized dealer for personal and commercial vehicle
segment of Mahindra & Mahindra Limited ('IND AAA'/Stable), was
established in 2003 as a partnership firm. The firm has two
showrooms at Davanagere and Shivamogga and four sales outlets and
service centers at Sagara, Thirtahalli, Channagiri and Honnali,
Karnataka. The firm provides sales, spares, and service facilities
to its customers.
MIL INDUSTRIES: Ind-Ra Affirms BB+ Loan Rating, Outlook Stable
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed MIL Industries
Limited's (MIL) bank facilities' ratings as follows:
-- INR75 mil. Non-fund-based working capital limits affirmed with
IND A4+ rating; and
-- INR22 mil. Fund-based working capital limits affirmed with IND
BB+/Stable rating.
Detailed Rationale of the Rating Action
The ratings reflect MIL's continued small scale of operations in
FY24. Furthermore, Ind-Ra expects the company's revenue, EBITDA
margins and credit metrics to deteriorate in FY25. The ratings
continued to be supported by comfortable credit metrics, adequate
liquidity and promoters' experience of more than five decades in
the rubber lining business.
Detailed Description of Key Rating Drivers
Continued Small Scale of Operations: MIL's revenue increased to
INR383 million in FY24 (FY23: INR357 million) and EBITDA rose to
INR76 million (INR45 million), led by a rise in orders from
existing customers. During 9MFY25, MIL booked revenue of
INR220million (9MFY24: INR291 million) and it had an order book of
INR200 million as of January 31, 2025, to be executed by June 2025.
In FY25, Ind-Ra expects the revenue to decline due to a drop in the
number of orders received by the company.
EBITDA Margin to Deteriorate in FY25: MIL's EBITDA margin improved
to a healthy 20.01% in FY24 (FY23: 12.83%) owing to a decrease in
raw material prices and better absorption of fixed costs, led by
revenue growth. The return on capital employed was 22.3% in FY24
(FY23: 8.8%). In FY25, Ind-Ra expects the EBITDA margin to decline
due to lower absorption of fixed costs, resulting from the likely
fall in revenue.
Continued Comfortable Credit Metrics: MIL's credit metrics remain
comfortable, owing to its low dependence on external debt. In FY24,
the credit metrics improved due to the increase in EBITDA and the
company remaining net cash positive. In FY24, MIL's the interest
coverage (operating EBITDA/gross interest expenses) stood at 32x
(FY23: 18.0x). In FY25, despite capex, Ind-Ra expects the credit
metrics to remain at similar levels due to continued low dependence
on external debt. In FY26, MIL has planned capex of INR25 million,
which would be completed by June 2025 and would be funded through
internal accruals.
Experienced Promoters: The ratings remain supported by MIL's
promoters' experience of over five decades in the manufacturing of
rubber lining, which has led to established relationships with its
customers and suppliers.
Liquidity
Adequate: The cash and cash equivalents stood at INR190 million at
FYE24 (FYE23: INR138 million). MIL does not have long-term debt
obligations. MIL's average maximum utilization of the fund-based
limits was 71% and that of the non-fund-based limits was 57.94 %
during the 12 months ended December 2024. The cash flow from
operations improved to INR79.5 million in FY24 (FY23: INR46.1
million) because of the increase in EBITDA. Furthermore, the free
cash flow increased to INR65.6 million (FY23: INR35 million),
supported by the absence of capex. The net working capital cycle
remained elongated but improved to 119 days in FY24 (FY23: 152
days), mainly on account of a decrease in inventory days to 100
(129). The company provides a credit period of 30-45 days to its
customers and receives credit period of 30-45 days from its
suppliers. The inventory holding period ranges between 100-130
days. MIL does not have any capital market exposure and relies on
banks and financial institutions to meet its funding requirements.
Rating Sensitivities
Negative: A decline in the scale of operations, leading to
deterioration in the liquidity and credit metrics, all on a
sustained basis, will be negative for the ratings.
Positive: A significant increase in the scale of operations and
stable operating profitability, resulting in sustained comfortable
credit metrics, will be positive for the ratings.
About the Company
Established in 1966, MIL manufactures anti-corrosion and
anti-abrasion lining and products, such as rubber lining for
fertilizer, chemical and tire manufacturing industries.
MIRA BHAYANDAR: CRISIL Lowers Corporate Credit Rating to B
----------------------------------------------------------
CRISIL Ratings has revised the rating on Mira Bhayandar Municipal
Corporation (MBMC) to 'CRISIL B/Stable Issuer Not Cooperating' from
'CRISIL BB+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Corporate Credit 0.0 CRISIL B/Stable (ISSUER NOT
Rating-LT COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with MBMC for
obtaining information through letters and emails dated December 16,
2024, January 6, 2025 and January 15, 2025, among others, apart
from telephonic communication. However, the issuer has remained non
cooperative.
Investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix Issuer Not Cooperating as the rating is arrived at
without any management interaction and is based on best available
or limited or dated information on the company. Such
non-cooperation by a rated entity may be a result of deterioration
in its credit risk profile. Ratings with the 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 MBMC, which restricts the
ability of CRISIL Ratings to take a forward-looking view on the
credit quality of the entity. CRISIL Ratings believes that the
rating action on MBMC is consistent with Assessing Information
Adequacy Risk methodology under Basics of Ratings criteria. Based
on the last-available information, the corporate credit rating of
MBMC is revised to 'CRISIL B/Stable Issuer Not Cooperating' from
'CRISIL BB+/Stable Issuer Not Cooperating'.
MBMC was established on February 28, 2002, under the Maharashtra
Municipal Corporation (MMC) Act. Prior to 2002, it was classified
as a municipal council. The corporation has jurisdiction over 79.40
square kilometre and provides a range of civic services to around
809,000 people (as per 2011 census).
Under the MMC Act, the obligatory duties of MBMC include water
supply, sewerage treatment and disposal, construction of roads and
bridges, primary education, hospitals and development and
maintenance of primary infrastructure in Mira Bhayandar
(Maharashtra). It also provides certain discretionary services,
including transportation and slum improvement.
NECTAR BOTTLING: CRISIL Reaffirms B Rating on INR7.12cr Sec. Loan
-----------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B/Stable' rating on the
long-term bank facilities of Nectar Bottling & Marketing LLP
(NBML).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Secured Overdraft
Facility 7.12 CRISIL B/Stable (Reaffirmed)
The rating continues to reflect NBML's modest scale of operations,
susceptibility to government regulations and geographical
concentration. These weaknesses are partially offset by the
extensive industry experience of the partners and business
arrangement with JDPL.
Analytical approach:
CRISIL Ratings has evaluated the standalone business and financial
risk profiles of NBML.
Key rating drivers and detailed description
Weaknesses:
* Modest scale of operations: NBML's business profile is
constrained by its modest scale of operations in the intensely
competitive distillers and vintners' industry. Operating income is
around INR7.66 crore in fiscal 2024, is expected to improve to
around INR28 crore in fiscal 2025.
* Susceptibility to government regulations and geographical
concentration: The firm's operations are susceptible to changes in
government policies with respect to production, distribution of
liquor, taxation, and state excise duty; or any significant
modification in the duty structure. Furthermore, NBML has limited
geographical reach with major revenue coming from Andhra Pradesh.
Strengths:
* Extensive industry experience of the partners: The partners have
over three decades of experience in the manufacturing and marketing
of Indian Made Foreign Liquor (IMFL). This has given them an
understanding of the dynamics of the market and enabled them to
establish healthy relationships with suppliers and customers.
* Business arrangement with JDPL: The firm has tied up with JDPL to
promote its brands namely Original Choice whisky and Mont Castle
brandy. The firm will manufacture and distribute the brands in
Andhra Pradesh, against royalty payment. This arrangement is
expected to support the firm's business.
Liquidity: Stretched
Bank limit utilisation averaged a moderate 72.69% over the 12
months ended November 2024. In the absence of repayment obligation,
expected annual cash accrual of INR0.43 crore will support
liquidity. Current ratio was healthy at 2.39 times as on March 31,
2024
Outlook: Stable
CRISIL Ratings believes NBML will continue to benefit from the
extensive experience of its partners.
Rating sensitivity factors
Upward factors
* Continued revenue growth with a steady operating margin leading
to higher cash accrual of around INR40 lakh.
Sustenance of financial risk profile
Downward factors
* Any large, debt-funded capital expenditure (capex) or elongation
in the working capital cycle leading to weakening in the financial
risk profile
* Decline in the operating performance and steep fall in cash
accrual to less than INR20 lakh
Established in 2017, NBML is located in Hyderabad. The firm
manufactures IMFL and is owned and managed by Mr Vikram Reddy K, Mr
Vijay Kumar Reddy K and family.
NEO POWER: Ind-Ra Keeps B+ Term Loan Rating in NonCooperating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Neo Power
Electronics and Projects Private Limited's (NPEPPL) bank
facilities' ratings in the non-cooperating category and has
simultaneously withdrawn the same.
The detailed rating actions are:
-- INR40 mil. Fund-based working capital limit* maintained in
non-cooperating category and withdrawn; and
-- INR260 mil. Non-fund-based working capital limit# maintained
in non-cooperating category and withdrawn.
*Maintained at 'IND B+/Negative/IND A4 (ISSUER NOT COOPERATING)'
before being withdrawn.
# Maintained at 'IND A4 (ISSUER NOT COOPERATING)' before being
withdrawn.
Detailed Rationale of the Rating Action
The rating has been maintained in the non-cooperating category
before being withdrawn because the issuer did not participate in
the rating exercise despite repeated requests by the agency through
phone calls and emails, and has not provided information about
latest audited financial statement, sanctioned bank facilities and
utilization, business plans and projections for the next three
years, and management certificate. This is in accordance with
Ind-Ra's policy of 'Guidelines on What Constitutes
Non-cooperation'.
Ind-Ra is no longer required to maintain the ratings, as the agency
has received a request for withdrawal of ratings and no-objection
certificate issued by the bankers. This is consistent with Ind-Ra's
Policy on Withdrawal of Ratings.
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interactions with NPEPPL while reviewing the
rating. Ind-Ra had consistently followed up with NPEPPL over
emails, apart from phone calls. The issuer has also not been
submitting the monthly no default statement since June 2024.
Limitations regarding Information Availability
Ind-Ra is unable to provide an updated forward-looking view on the
credit rating of NPEPPL, as the agency does not have adequate
information to review the rating. If an issuer does not provide
timely business and financial updates to the agency, it indicates
weak governance, particularly in 'Transparency of Financial
Information'. The agency may also consider this as symptomatic of a
possible disruption/distress in the issuer's credit profile.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. NPEPPL has been
non-cooperative with the agency since October 2024.
About the Company
Incorporated in 1975 as a proprietorship firm, NPEPPL was converted
to a private limited company in 1988. It is engaged in the
manufacturing, installation and maintenance of electrical,
electronics, instrumentation, automation equipment and projects for
defense establishments, tele-communication companies and related
Industries. The promoters are Baburao S Wanelkar and family. The
company's registered office is in Mumbai and manufacturing units
are in Maharashtra.
NIFTY LABS: Ind-Ra Keeps BB+ Loan Rating in NonCooperating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Nifty Labs
Private Limited's bank loan ratings in the non-cooperating category
and has simultaneously withdrawn the same.
The detailed rating actions are:
-- INR120 mil. Non-fund-based working capital limits* maintained
in non-cooperating category and withdrawn; and
-- INR250 mil. Fund-based working capital limits# maintained in
non-cooperating category and withdrawn.
Note: ISSUER NOT COOPERATING: The issuer did not cooperate, based
on best available information
#Maintained at 'IND BB+/Stable (ISSUER NOT COOPERATING)/IND A4+
(ISSUER NOT COOPERATING)' before being withdrawn
* Maintained at 'IND A4+ (ISSUER NOT COOPERATING)' before being
withdrawn
Detailed Rationale of the Rating Action
The ratings have been maintained in the non-cooperating category
before being withdrawn as the issuer did not participate in the
rating exercise despite repeated requests by the agency through
phone calls and emails, and has not provided information about
latest audited financial statements, sanctioned bank facilities and
utilization, business plans and projections for the next three
years, information on corporate governance, and management
certificate. This is in accordance with Ind-Ra's policy of
'Guidelines on What Constitutes Non-cooperation'.
Ind-Ra is no longer required to maintain the ratings, as the agency
has received a no-objection certificate from the lenders and a
withdrawal request from the company. This is consistent with
Ind-Ra's Policy on Withdrawal of Ratings. Ind-Ra will no longer
provide analytical and rating coverage for the company.
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with Nifty Labs while reviewing
the ratings. Ind-Ra had consistently followed up with Nifty Labs
over emails, apart from phone calls. The issuer has also not been
submitting its monthly no default statement since June 2019.
Limitations regarding Information Availability
Ind-Ra is unable to provide an updated forward-looking view on the
credit rating of Nifty Labs, as the agency does not have adequate
information to review the rating. If an issuer does not provide
timely business and financial updates to the agency, it indicates
weak governance, particularly in 'Transparency of Financial
Information'. The agency may also consider this as symptomatic of a
possible disruption/distress in the issuer's credit profile.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings.
About the Company
Incorporated in 2005, Nifty Labs manufactures active pharmaceutical
ingredients and advanced drug intermediates.
NUTRIFRESH FARM: Ind-Ra Keeps BB+ Loan Rating in NonCooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Nutrifresh Farm
Tech India Private Limited's (NFFTIPL) bank facilities' ratings in
the non-cooperating category and has simultaneously withdrawn the
same.
The detailed rating actions are:
-- INR33.50 mil. Fund-based* working capital limit maintained in
non-cooperating category and withdrawn; and
-- INR186.50 mil. Term loan** due on March 31, 2028 maintained in
non-cooperating category and withdrawn.
*Maintained at 'IND BB+/Stable (ISSUER NOT COOPERATING)/ IND A4+
(ISSUER NOT COOPERATING)' before being withdrawn
** Maintained at 'IND BB+/Stable (ISSUER NOT COOPERATING)' before
being withdrawn
Detailed Rationale of the Rating Action
The ratings have been maintained in the non-cooperating category
before being withdrawn because the issuer did not participate in
the rating exercise despite repeated requests by the agency through
phone calls and emails, and has not provided information about
latest audited financial statement, sanctioned bank facilities and
utilization, business plans and projections for the next three
years, and management certificate. This is in accordance with
Ind-Ra's policy of 'Guidelines on What Constitutes
Non-cooperation'.
Ind-Ra is no longer required to maintain the ratings, as the agency
has received a request for withdrawal of ratings from the issuer
and a no-objection certificate from the bankers. This is consistent
with Ind-Ra's Policy on Withdrawal of Ratings.
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interactions with NFFTIPL while reviewing the
ratings. Ind-Ra had consistently followed up with NFFTIPL over
emails starting April 30, 2024, apart from phone calls. The issuer
has submitted no default statement until March 2024.
Limitations regarding Information Availability
Ind-Ra is unable to provide an updated forward-looking view on the
credit rating of NFFTIPL, as the agency does not have adequate
information to review the ratings. If an issuer does not provide
timely business and financial updates to the agency, it indicates
weak governance, particularly in 'Transparency of Financial
Information'. The agency may also consider this as symptomatic of a
possible disruption/distress in the issuer's credit profile.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. NFFTIPL has been
non-cooperative with the agency since April 30, 2024.
About the Company
NFFTIPL was incorporated in 2019 by its promoters Ganesh Sambhaji
Nikam and Sanket Mehta. The company is engaged in hydroponic
farming of over 42 stock keeping unit of fruits/vegetables/leafy
greens on 33 acres of controlled environment agriculture hydroponic
farms. The company has six units in Pune, Maharashtra.
PETROMAR ENGINEERED: CRISIL Hikes Rating on INR5cr Loan to B+
-------------------------------------------------------------
CRISIL Ratings has upgraded its ratings on the bank facilities of
Petromar Engineered Solutions Private Limited (PESPL) to 'CRISIL
B+/Stable/CRISIL A4' from 'CRISIL D/CRISIL D'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 8.5 CRISIL A4 (Upgraded from
'CRISIL D')
Letter of Credit 4.5 CRISIL A4 (Upgraded from
'CRISIL D')
Long Term Loan 2 CRISIL B+/Stable (Upgraded
from 'CRISIL D')
Working Capital 5 CRISIL B+/Stable (Upgraded
Facility from 'CRISIL D')
Working Capital 5 CRISIL B+/Stable (Upgraded
Facility from 'CRISIL D')
The ratings upgrade reflects track record of timely repayment of
debt obligations for more than 90 days.
The ratings continue to reflect stretched working-capital cycle and
modest scale of operations. These weaknesses are partially offset
by the extensive experience of the promoters in the industrial
machinery and consumer industry.
Analytical Approach
Unsecured loans (INR12.40 crore as on March 31, 2024) extended by
the promoters have been treated as 75% equity and 25% debt as these
interest-free loans are expected to be retained in the business
over the medium term.
Key Rating Drivers & Detailed Description
Weaknesses:
* Large working capital requirement: Gross current assets (GCAs)
were sizeable at 348 days as on March 31, 2024, driven by high
debtors of 131 days and huge inventory of 226 days. Long credit
period is offered to customers due to the project nature of
business; inventory remains substantial and comprises
work-in-progress of 139-176 days. The working capital cycle of the
company is expected to improve over the medium term as the company
is executing shorter duration orders along with changes in
regulations. However, its sustenance would be monitorable.
* Modest scale of operations: PESPL's scale of operations remains
modest as indicated by revenue of INR40 crore in fiscal 2024.
Revenue is estimated to remain in range of INR45 crore to INR50
crore in fiscal 2025. The industrial machinery and consumables
industry is highly fragmented, and the consequent intense
competition may continue to constrain scalability, pricing power
and profitability.
Strength:
* The promoters have over 45 years of experience in designing &
fabricating various filtration/separation systems used in oil &
gas, petroleum, emission fuels and aviation industries. Their
expertise and strong understanding of market dynamics enabled them
to achieve certifications from American Society of Mechanical
Engineers, resulting in PESPL becoming one of the approved vendors
of major oil and petrochemical companies.
Liquidity: Poor
Liquidity is poor with modest net cash accruals of INR93 lakhs in
FY 2024 and high bank limit utilization of 84% over the past 12
months ending January 2025. Net cash accruals are expected to
remain above INR1.80 crore over medium term against repayment
obligations of INR0.77 crore. Unsecured loan from promoters as on
March 2023 is INR12.40 crore supports liquidity.
Outlook: Stable
CRISIL Ratings believes PESPL will continue to benefit from the
extensive experience of its promoters and their established
relationships with customers.
Rating sensitivity factors
Upward factors
* Sustained improvement in scale of operation and sustenance of
operating margin, leading to cash accruals above 2.5 crores.
* Improvement in the working capital cycle, leading to better
liquidity
Downward factors
* Decline in scale of operations or operating margin dropping below
7% leading to lower-than-expected net cash accrual.
* Further stretch in working capital cycle leading to gross current
assets higher than 300 days.
PESPL was incorporated in 1986 by Mr Saif Shaikh and Mr Mukesh
Kaura. The company designs and fabricates various
filtration/separation systems used in oil & gas, petroleum,
emission fuels and aviation industries for their onshore and
offshore platforms. Its manufacturing facility is in Maharashtra
Industrial Development Corporation, Murbad (Thane, Maharashtra).
RAYBAN SURFACES: CRISIL Assigns B+ Rating to INR24cr Term Loan
--------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable/CRISIL A4'
ratings to the bank facilities of Rayban Surfaces LLP (RSL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 4.5 CRISIL A4 (Assigned)
Cash Credit 7.5 CRISIL B+/Stable (Assigned)
Proposed Long Term
Bank Loan Facility 2 CRISIL B+/Stable (Assigned)
Term Loan 12 CRISIL B+/Stable (Assigned)
Term Loan 24 CRISIL B+/Stable (Assigned)
The ratings reflect the firm's exposure to risks related to ongoing
project, expected leveraged capital structure and susceptibility to
cyclical nature of demand and volatility in raw material prices.
These weaknesses are partially offset by the extensive industry
experience of its partners and favourable location of plant due to
proximity to raw material and labour sources.
Analytical Approach
CRISIL Ratings has evaluated the standalone business and financial
risk profiles of RSL.
Key Rating Drivers & Detailed Description
Weaknesses:
* Exposure to risks related to ongoing project: RSL has set up a
manufacturing unit of ceramic vitrified tiles with capacity of
1,21,500 metre per annum (MPA) in Morbi, Gujarat. The operations
commenced from December 2024. Demand risk is expected to be
moderate as the ceramic industry is highly fragmented owing to low
entry barrier (small capital and technological requirements) and is
hence, highly competitive. Successful stabilisation of operations
at the new unit will remain monitorable over the medium term.
* Expected leveraged capital structure: Gearing is expected to
remain weak and debt protection metrics muted because the project
is aggressively funded in a debt-equity ratio of 2.72 times.
* Susceptibility to cyclical nature of demand and volatility in raw
material prices: The ceramics business is cyclical and moves in
tandem with the construction sector. Thus, demand will remain
vulnerable to inherent cyclicality in the end-user industry. The
firm will also remain vulnerable to volatility in raw material
prices over medium term, which can affect the operating margin.
Strengths:
* Extensive experience of the partners: Presence of over a decade
in the ceramic vitrified industry through group concerns has
enabled the partners to develop healthy business relationships in
the region.
* Favourable location of the plant due to proximity to raw material
and labour sources: The firm's manufacturing facilities are located
in Morbi, which is India's ceramic hub. This facilitates easy
access to clay (key raw material), contractors and skilled
labourers, and critical infrastructure such as gas and power.
Also, transportation costs are low as Morbi is close to the state's
major ports of Kandla and Mundra.
Liquidity: Poor
Cash accrual is expected to be around INR0.24 crore in fiscal 2025
against negligible term debt obligation. Expected net cash accrual
of INR4.4 crore will be insufficient to meet term debt obligation
of INR6 crore in fiscal 2026; and the funding gap will be bridged
with unsecured loans from the partners. The liquidity will be
supported by working capital limit of INR7.5 crore, which has
already been sanctioned by the bank.
Outlook: Stable
CRISIL Ratings believes RSL will benefit over the medium term from
the extensive industry experience of its partners and favourable
location of plant due to proximity to raw material and labour
sources.
Rating sensitivity factors
Upward factors:
* Timely stabilisation of operations at the proposed plant leading
to significant growth in revenue and profitability
* Healthy operating margin of 12% and sufficient net cash accrual
from manufacturing operations
Downward factors:
* Net cash accrual below INR5 crore during initial phase of
operations
* Substantial increase in working capital requirement further
weakening liquidity and financial risk profile
RSL was set up in 2023 as a partnership firm by Mr Bhaveshbhai
Durlabhjibhai Aghara, Ms Harshidaben Digeshbhai Aghara, Mr
Jayeshkumar Mavjibhai Dava and Ms Rajeshriben Nileshbhai Medpara.
The firm has set up a plant to manufacture ceramic vitrified tiles
in Morbi with installed capacity of 1,21,500 MPA. The plant began
operations in December 2024.
SILVERGLADES HOMES: Ind-Ra Withdraws BB+ Bank Loan Rating
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn rating of
Silverglades Homes LLP's (SHLLP) proposed bank facility as
follows:
-- The 'IND BB+/Stable' rating on the INR1.50 bil. Proposed term
loan is withdrawn.
Detailed Rationale of the Rating Action
Ind-Ra has withdrawn the rating on SHLLP's request as the company
did not avail the instrument as envisaged. This is consistent with
Ind-Ra's Policy on Withdrawal of Ratings.
About the Company
SHLLP was established as a limited liability partnership firm in
February 2023 and is engaged in the construction of a residential
project namely The Legacy. The project is located at Sec-63A,
Gurugram, Haryana. The firm has entered a joint venture agreement
with the landowner Pyramid & LID Realtors LLP and will construct a
total of 408 residential units under the project.
SM CORPORATION: Ind-Ra Affirms BB+ Bank Loan Rating
---------------------------------------------------
India Ratings and Research (Ind-Ra) has taken the following rating
actions on SM Corporation Limited's (SMCL) bank facilities:
-- INR1.060 bil. Fund-based working capital limit affirmed with
IND BB+/Stable/IND A4+ rating; and
-- INR116.1 mil. Fund-based working capital limit assigned with
IND BB+/Stable/IND A4+ rating.
Detailed Rationale of the Rating Action
The affirmation reflects the consistent liquidity challenges SMCL
faces around inventory accumulation from engineering, procurement
and construction (EPC) contracts, along with the competitive and
cyclical nature of industry, and moderate credit metrics. However,
the ratings are supported by the company's long track record of
operations with the authorized distributorship of Tata Steel
Limited's (TSL; NCDs rated at IND AAA/Stable) products in northeast
India, large scale of operations and average EBITDA margins.
Detailed Description of Key Rating Drivers
Liquidity Challenges due to Project Delays and Inventory
Accumulation: The company's liquidity has been impacted by delays
in project execution and the accumulation of work-in-progress (WIP)
inventory related to EPC projects. This inventory has remained high
over the years as significant revenue recognition is pending due to
delays in the clearance of bills related to escalations claims
submitted to Military Engineering Services (MES; contractor). At
FYE24, the WIP inventory with respect to EPC projects stood at
INR485.2 million. MES had cleared escalations claims amounting to
INR20.1 million in FY22. At end-March 2024, SMCL provided its
subsidiary SM Engineers India Limited (holds 89% stake) INR160.2
million of advances for the execution of the EPC project.
Moderate Credit Metrics: The gross interest coverage (operating
EBITDA/gross interest expense) deteriorated to 2.31x in FY24 (FY23:
2.39x) and the net financial leverage (Ind-Ra-adjusted
debt/operating EBITDAR) to 3.44x (4.32x) owing to a relatively
higher increase in the gross interest expense to INR106.71 million
(INR90.57 million), than the absolute EBITDA. The total debt
increased to INR1,098.68 million in FY24 (FY23: INR962.91 million).
Ind-Ra expects the credit metrics to remain moderate but improve in
the medium term, on account of a likely improvement in the overall
scale of operations coupled with a reduction in long-term debt due
to scheduled repayments. Of the total debt of INR1,098.68 million
at FYE24 (FYE23: INR962.91 million), INR32.73 million (INR95.76
million) was in the form of unsecured loans infused by related
entities.
Competitive and Cyclical Nature of Industry: The steel trading
industry remains highly fragmented, with a large number of
organized and unorganized players, leading to intense competition.
Also, the industry is cyclical in nature owing to its dependence on
macro-economic growth factors; this has a major impact on the
sustainability of trading companies such as SMCL.
Long Operational Track Record with Authorized Distributorship: SMCL
has been in the steel trading business since 2000. The promoters
have almost four decades of experience in the steel industry. SMCL
is a sole authorized distributor of TSL's products in the northeast
India, except Nagaland and Manipur. The products portfolio includes
thermo-mechanically treated (TMT) rebars and products of Tata
Tiscon ready build, Tata Pravesh and Tata Agrico,, among others. As
of June 2024, the company had about 430 dealers in the region.
Large Scale of Operations: SMCL's revenue grew at a CAGR of about
20% to INR8,776.36 million over FY21-FY24 (FY23: INR8,183.06
million) on the back of an increase in the overall quantity sold of
various products of TSL, resulting from a strong demand in the
north-eastern region. Ind-Ra expects the revenue to continue to
improve in the medium term on account of increase in the overall
demand of steel products in the industry.
Average Profitability: The EBITDA margin remained average at 2.80%
in FY24 (FY23: 2.65%, FY22: 2.89%) with a return on capital
employed of 13.5% (13.4%, 14.4%). The EBITDA margins are vulnerable
to fluctuations in the prices of products, and competition from
other organized and unorganized players in the industry. Ind-Ra
expects the margins to remain at similar levels in the
near-to-medium term owing to the trading nature of operations.
Liquidity
Stretched: The average maximum utilization of the fund-based limits
was 92.43% for the 12 months ended November 2024.
The average maximum utilization is likely to have remained at
similar levels in December 2024 and January 2025. SMCL's cash and
cash equivalents stood at INR7.63 million at FYE24 (FYE23: INR25.15
million). The net working capital cycle elongated to 57 days in
FY24 (FY23: 54 days) due to a rise in the inventory holding period
to 50 days (45 days). A majority of the inventory period pertains
to the escalation claims pending with respect to the EPC contracts
executed with MES. In FY24, the cash flow from operations
deteriorated to negative INR196.77 million (FY23: negative INR125.2
million) on account of unfavorable changes in the working capital.
SMCL's cash flow from operations is likely to turn positive in the
near term, led by favorable changes in the working capital. The
company has debt obligations of around INR13.90 million in FY25 and
FY26 each, likely to be met from internal accruals.
Rating Sensitivities
Negative: A decline in the scale of operations or profitability
with the interest coverage reducing below 2.0x or deterioration in
the overall liquidity profile, on a sustained basis, or a further
pile up of WIP inventory with respect to EPC contracts, will be
negative for the ratings.
Positive: Maintaining the scale of operations and profitability, an
improvement in the liquidity position with the interest coverage
exceeding 3.0x, on a sustained basis, along with the timely
realization of funds from EPC contracts will be positive for the
ratings.
About the Company
Incorporated in 1981, SMCL (formerly Northeastern Mercantiles
Limited) is a sole distributor of TSL's products in the
northeastern region (except Nagaland and Manipur). Its product
portfolio comprises TMT re-bars, tubes, structural and agricultural
implements. The company also undertakes EPC contracts for MES.
TECHNOSYS INTEGRATED: Ind-Ra Cuts Loan Rating to BB
---------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded the rating of
Technosys Integrated Solutions Private Limited (TISPL) and its bank
facilities to 'IND BB/Negative (ISSUER NOT COOPERATING)' from 'IND
BBB-/Negative (ISSUER NOT COOPERATING)'. The issuer did not
participate in the rating exercise despite continuous requests and
follow-ups by the agency through emails and phone calls. Thus, the
rating is based on the best available information. Therefore,
investors and other users are advised to take appropriate caution
while using the rating.
The detailed rating actions are:
-- Long-term Issuer Rating downgraded with IND BB/Negative
(ISSUER NOT COOPERATING) rating;
-- INR11 mil. Fund-based working capital limit downgraded with
IND BB/Negative (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT
COOPERATING) rating;
-- INR1.439 bil. Non-fund-based working capital limit downgraded
with IND A4+ (ISSUER NOT COOPERATING) rating; and
-- INR100 mil. Proposed non-fund-based working capital limit
downgraded with IND A4+ (ISSUER NOT COOPERATING) rating.
NOTE: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
best available information
Detailed Rationale of the Rating Action
The downgrade and Negative Outlook is in accordance with Ind-Ra's
Guidelines on What Constitutes Non-Cooperation. As per the
guidelines, if an issuer has an investment grade rating outstanding
while being noncooperative for more than six months with Ind-Ra,
then Ind-Ra will necessarily downgrade such rating to the
non-investment grade, while maintaining the Issuer Not Cooperating
status.
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interaction TISPL while reviewing the
ratings. Ind-Ra had consistently followed up with the company over
emails since February 12, 2025, apart from phone calls.
Limitations regarding Information Availability
Ind-Ra has reviewed the of the credit ratings of TISPL based on
best available information and is unable to provide a
forward-looking credit view. Hence, the current outstanding rating
might not reflect the company's credit strength. If an issuer does
not provide timely business and financial updates to the agency, it
indicates weak governance, particularly in 'Transparency of
Financial Information'. The agency may also consider this as
symptomatic of a possible disruption/distress in the issuer's
credit profile. Therefore, investors and other users are advised to
take appropriate caution while using these ratings. The company has
been non-cooperative with the agency since September 11, 2024.
About the Company
Established in 2006, TISPL provides installation of surveillance
and home security systems. The company also offers information
technology-oriented solutions in surveillance and traffic
management system, business automation, technology integration in
more than 20 states.
THENPANDIAN ENERGY: Ind-Ra Assigns BB+ Bank Loan Rating
-------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated Thenpandian Energy
Innovations Private Limited's (TEIPL) bank facilities as follows:
-- INR700 mil. Term loan due on September 2032 assigned with IND
BB+/Stable rating;
-- INR6 mil. Proposed bank facility assigned with IND BB+/Stable
rating; and
-- INR14 mil. Non-fund-based working capital limit assigned with
IND A4+ rating.
Detailed Rationale of the Rating Action
The ratings reflect TEIPL's nascent stage of operations as it is
setting up a solar plant, which will commence operations from May
2025. The ratings are also constrained by TEIPL's stretched
liquidity. Ind-Ra expects the scale of operations to be small,
EBITDA margins to be healthy and credit metrics to be modest in the
medium term. However, the ratings continue to be supported by
healthy EBITDA margin and debt-free position in FY24.
Detailed Description of Key Rating Drivers
Nascent Stage of Operations: TEIPL began trading operations at 11
ALDS in June 2023. It is also undertaking a large capex of
INR1,012.2 million for setting up a 16MW solar plant, which is
scheduled to commence operations by mid-May 2025. During 9MFY25,
TEIPL booked revenue of INR695.91 million (FY24: INR468.02 million)
from the trading division.
Large Ongoing Debt-funded Capex to Impact Credit Metrics in
Near-to-medium Term: TEIPL is undergoing capex of INR1,012.2
million for setting up of 16MW solar power plant, which is
scheduled to be completed by May 2025. The capex is being funded
through a term loan of INR700 million and unsecured loan from
promoters of INR312.2 million. Until June 2024, the company
incurred capex of INR303.6 million, which was funded by term loan
of INR238.4 million and unsecured loan of INR65.2 million. In FY24,
TEIPL's interest coverage (operating EBITDA/gross interest
expenses) was 286.13x. The company was net cash positive in FY24.
However, Ind-Ra expects the credit metrics to deteriorate in the
near-to-medium term due to the ongoing debt-funded capex.
Stretched Liquidity: TEIPL does not have any capital market
exposure and relies on banks and financial institutions to meet its
funding requirements. TEIPL has scheduled repayments of INR50.03
million and INR99.96 in FY26 and FY27, respectively.
EBITDA Margin to Remain Healthy in Medium Term: In FY24, the
EBITDA margin stood at 18.95% with a return on capital employed of
267%. Ind-Ra expects TEIPL's EBITDA margin to improve further and
remain healthy in the medium term due to better absorption of cost,
aided by the minimal expenses required for the maintenance of the
solar plant.
Liquidity
Stretched: The cash and cash equivalents stood at INR38.45 million
at FYE24. The cash flow from operations was INR66.55 million in
FY24 and free cash flow was INR37.45 million.
Rating Sensitivities
Negative: Any delay in the commencement of the solar power plant
or a lower offtake leading to deterioration in the overall credit
metrics and a further pressure on the liquidity position, could
lead to a negative rating action.
Positive: The timely commencement of the solar plant and an
increase in the scale of operations, along with an improvement in
the overall credit metrics and the debt service coverage ratio
above 1.1x as well as liquidity position, all on a sustained basis,
could lead to a positive rating action.
About the Company
Incorporated in June 2023, TEIPL operates six ALDS in Tamil Nadu
and five ALDS in Karnataka. The company is also setting up a 16MW
solar power plant in Namakkal, Tamil Nadu, which is likely to
become operational from May 2025.
UDAGIRI SUGAR: Ind-Ra Moves BB+ Loan Rating to NonCooperating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has revised the Outlook on
Udagiri Sugar and Power Limited's (USPL) bank facilities to
Negative from Stable and migrated the rating to the non-cooperating
category. The ratings are simultaneously withdrawn on the issuer's
request.
The detailed rating actions are:
-- INR1.50 bil. Fund-based working capital limit Outlook revised
to Negative; Migrated to non-cooperating category and
withdrawn; and
-- INR350 mil. Proposed fund-based working capital limit Outlook
revised to Negative; migrated to non-cooperating category and
withdrawn.
*Migrated to 'IND BB+/Negative (ISSUER NOT COOPERATING)'/'IND A4+
(ISSUER NOT COOPERATING)' before being withdrawn.
Detailed Rationale of the Rating Action
The Outlook revision to Negative indicates the non-cooperation
could be symptomatic of possible disruption/distress in the
issuer's business. The ratings have been migrated to the
non-cooperating category before being withdrawn as the issuer did
not participate in the surveillance exercise, despite continuous
requests and follow-ups by the agency through emails and phone
calls, and has not provided information about latest audited
financial statement, sanctioned bank facilities, business plans and
projections for the next three years. This is in accordance with
Ind-Ra's policy of 'Guidelines on What Constitutes
Non-cooperation'.
Ind-Ra is no longer required to maintain the rating, as the agency
has received no-objection certificate from the lenders and a
withdrawal request from the issuer. This is consistent with
Ind-Ra's Policy on Withdrawal of Ratings.
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with USPL while reviewing the
rating. Ind-Ra had consistently followed up with USPL over emails,
apart from phone calls.
Limitations regarding Information Availability
Ind-Ra is unable to provide an updated forward-looking view on the
credit rating of USPL, as the agency does not have adequate
information to review the rating. If an issuer does not provide
timely business and financial updates to the agency, it indicates
weak governance, particularly in 'Transparency of Financial
Information'. The agency may also consider this as symptomatic of a
possible disruption/distress in the issuer's credit profile.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings.
About the Company
Incorporated in 2010, USPL has an integrated facility and
manufactures sugar, produces ethanol, and generates power. The
company recently expanded its installed capacity of its sugar mill
to 4,900 TCD and increased its ethanol production capacity to 165
KLPD. It also has a co-generation plant with an installed capacity
of 14 megawatts per annum.
USHA CONSTRUCTIONS: Ind-Ra Affirms BB+ Rating, Outlook Stable
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Usha
Constructions' (UC) bank facilities ratings as follows:
-- INR80 mil. Fund-based working capital limit affirmed; Outlook
revised to Stable with IND BB+/Stable/IND A4+ rating;
-- INR40 mil. (reduced from INR240 mil.) Non-fund-based working
capital limit affirmed with IND A4+ rating;
-- INR60 mil. INR60 mil. Proposed non-fund-based working capital
limit affirmed with IND A4+ rating;
-- INR220 mil. Proposed non-fund-based working capital limit
assigned with IND A4+ rating; and
-- INR20 mil. Proposed fund-based working capital limit* is
withdrawn.
*Ind-Ra has withdrawn the rating as the company did not proceed
with the instrument as envisaged. This is consistent with Ind-Ra's
Policy on Withdrawal of Ratings.
Detailed Rationale of the Rating Action
The affirmation reflects UC's continued small scale of operations,
high customer concentration risk and stretched liquidity. However,
the ratings are supported by UC's healthy EBITDA margins,
comfortable credit metrics and its promoters' more than a decade of
experience in the construction industry. Ind-Ra expects the
revenue, EBITDA margins and credit metrics to remain at FY24 levels
in the medium term.
Detailed Description of Key Rating Drivers
Continued Small Scale of Operations: The affirmation reflects UC's
continued small scale of operations with a marginal increase in the
revenue to INR441.93 million in FY24 (FY23: INR431.9 million) and
EBITDA to INR47.67 million (INR45.15 million) due to the execution
of similar nature of orders. As of December 2024, it had an
unexecuted orderbook of INR1,396.31 million (3.16x of FY24
revenue), of which orders worth INR200.72 million are to be
executed in FY25 and the remaining till FY27. During 9MFY25, the
firm booked revenue of INR370 million. Ind-Ra expects the revenue
to remain at similar levels in FY25, given the company's existing
order book.
High Customer Concentration Risk: About 90% of the orders as of
December 2024 were from the government of Karnataka for Pradhan
Mantri Awas Yojana Scheme. There has been delays in receipt of
payments in the past from the same project, which poses a risk of
collection of receivables.
Stretched Liquidity: The net working capital cycle elongated to 181
days in FY24 (FY23: 97 days) owing to an increase in the inventory
holding period to 121 days (19 days), due to delay in order
execution due to non-receipt of payment for orders executed for
Pradhan Mantri Awas Yojana Scheme. The cash flow from operations
turned negative to INR1.65 million in FY24 (FY23: INR3.4 million),
mainly due to unfavorable changes in working capital. UC's average
maximum utilization of the fund-based and non-fund-based limits was
86.59% and 44.29%, respectively, during the 12 months ended
December 2024. The company has scheduled debt repayments of INR11
million and INR10.4 million in FY25 and FY26, respectively.
Healthy EBITDA Margins: The ratings also factor in Usha's healthy
EBITDA margins of 10.79% in FY24 (FY23: 10.45%) with a return on
capital employed of 19.8% (22.7%). In FY24, the margins increased
due to a decrease in the cost of raw materials consumed. Ind-Ra
expects the EBITDA margins to remain at similar level in FY25, due
to no major change in the company's cost structure owing to the
similar nature of business.
Comfortable Credit Metrics: The interest coverage (operating
EBITDA/gross interest expenses) improved to 3.35x in FY24 (FY23:
3.12x) owing the marginal increase in EBITDA. However, the net
leverage (adjusted net debt/operating EBITDAR) deteriorated to
2.56x in FY24 (FY23: 2.41x) because of an increase in total debt.
In FY25, Ind-Ra expects the credit metrics to remain at similar
levels due to the absence of a major capex plan in the near term
and scheduled term loan repayments.
Experienced Promoters: The ratings remain supported by the
promoters' a decade-long experience in the engineering, procurement
and construction industry. This has facilitated the company to
establish strong relationships with its customers as well as
suppliers.
Liquidity
Stretched: The firm does not have any capital market exposure and
relies on banks and financial institutions to meet its funding
requirements. The free cash flow improved to negative INR2.29
million (negative INR8.43 million) due to absence of any capex in
FY24. The cash and cash equivalents stood at INR0.23 million at
FYE24 (FYE23: INR15.07 million).
Rating Sensitivities
Negative: A decline in the scale of operations, leading to
deterioration in the overall credit metrics and elongation of the
working capital cycle, leading to a further pressure on the
liquidity position, could lead to negative rating action.
Positive: An increase in the scale of operations, along with an
improvement in overall credit metrics with an improvement in
liquidity profile, all on a sustained basis, could lead to a
positive rating action.
About the Company
UC is a partnership firm established in 2015. The firm is engaged
in construction contracts for commercial, residential and
government projects. Usha has its headquarter at Bengaluru and
undertakes contracts in Karnataka.
VYAKTA RENEW: CRISIL Assigns B+ Rating to INR150cr Proposed Loan
----------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating to the
long-term bank facility of Vyakta Renew Energy Private Limited
(VREPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term
Bank Loan Facility 150 CRISIL B+/Stable (Assigned)
The rating reflects exposure to risks related to the modernisation
and upgradation project and risks inherent in operating
renewable-energy assets. These weaknesses are partially offset by
the diversified entrepreneurial experience of the promoters.
Analytical approach
CRISIL Ratings has evaluated the standalone business and financial
risk profiles of VREPL.
Key rating drivers and detailed description
Weaknesses:
* Exposure to risks related to modernisation and upgradation
project: VREPL is refurbishing 31 wind turbine generators (WTGs) at
Tirunelveli, Tenkasi and Theni (all in Tamil Nadu); the activity is
in project phase and these WTGs are expected to be commissioned in
January 2026. Timely completion of the project and successful
stabilisation of operations at the new unit will remain a key
rating sensitivity factor.
* Exposure to risks inherent in operating renewable-energy assets
Wind power generation is highly vulnerable to seasonality and
variance in wind intensity. Given that cash flow is sensitive to
the plant load factor, the inherent risk could impair the
debt-servicing ability.
Strength:
* Diversified entrepreneurial experience of the promoters
Led by the government initiative and current scenario of demand for
wind power energy, the promoters have stepped into the business of
renewal energy (acquisition and refurbishment of 31 WTGs).
Liquidity: Poor
Average debt servicing coverage ratio (DSCR) is expected at a
modest 1.09 times over the residual tenure of the loan, with
minimum DSCR of 1.03 times.
Outlook: Stable
VREPL will continue to benefit from the diversified entrepreneurial
experience of the promoters and is likely to maintain its DSCR over
the medium term.
Rating sensitivity factors
Upward factors
* Timely stabilisation of operations at the proposed plant and
thereafter generating significant revenue and profitability.
* DSCR increasing to 1.20 times, with higher-than-anticipated cash
inflow once the plant is operational
Downward factors
* Faces a considerable delay in the commencement of its operations
leading to significantly low cash accruals during its initial phase
of operations leading to DSCR below 1 time.
* Witnesses a substantial increase in its working capital
requirements thus weakening its liquidity & financial profile.
VREPL was incorporated in June 2024 by Mr Elumalai Raji and Mr
Vishnu Vedant Devanand. The company has acquired wind power
generation business by signing the memorandum of understanding with
Schakralaya Motors Pvt Ltd. VREPL is carrying out the refurbishment
activity of 31 WTGs located at Tirunelveli, Tenkasi and Theni; the
activity is in project phase and these WTGs are expected to be
commissioned in January 2026.
=====================
N E W Z E A L A N D
=====================
GLAZE IT: Creditors' Proofs of Debt Due on April 4
--------------------------------------------------
Creditors of Glaze It Wellington Limited are required to file their
proofs of debt by April 4, 2025, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Feb. 27, 2025.
The company's liquidator is:
Heath Gair
Palliser Insolvency
Level 2, 40 Lady Elizabeth Lane
Wellington
PO Box 57124
Mana
Porirua 5247
INDEPENDENT PROJECT: Creditors' Proofs of Debt Due on April 2
-------------------------------------------------------------
Creditors of Independent Project Management Services Limited are
required to file their proofs of debt by April 2, 2025, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on March 5, 2025.
The company's liquidators are:
Steven Khov
Kieran Jones
Khov Jones Limited
PO Box 302261
North Harbour
Auckland 0751
JUICY FESTIVAL: Placed Into Voluntary Liquidation
-------------------------------------------------
Radio New Zealand reports that the company behind Juicy Fest has
been placed into voluntary liquidation.
RNZ, citing 1News, discloses that Juicy Festival Limited, Timeless
Events New Zealand and Timeless Events Australia Limited were
placed into liquidation on March 7, with Blacklock Rose's Ben
Francis and Garry Whimp appointed as liquidators.
Juicy Fest had cancelled the New Zealand leg of the tour in
December after being declined a liquor licence in Auckland, RNZ
says.
In an email, Juicy Festival Limited said the cancellation had
caused "significant and unexpected costs," RNZ relays.
"As you know in 2025, we had to cancel the Juicy Fest New Zealand
events as a result of our liquor licence being declined in
Auckland.
"We tried to combat the situation by securing a new, licensed venue
for Juicy Fest Auckland however, this option was taken away from us
at the last minute through no fault of the venue.
"When we were not approved for a special licence in Auckland, it
quickly became a health and safety issue, and it was not as simple
as running an event without alcohol."
RNZ relates that Juicy Festival Limited said the liquidators would
be working through how to best resolve the company's financial
obligations, "including funds and funds held to be refunded".
It added it aware the ticketing provider TicketFairy had been
"unfairly harassed" about the refunds.
"Please be aware that TicketFairy is a ticketing outlet only and
does not hold funds or deal with ticket refunds.
"The liquidator will access funds and deal with refunds, so please
wait to be contacted."
Juicy Festival Limited said it was "an extremely difficult
situation for all involved".
"The last thing we want is for anyone to be negatively impacted by
this and we want to assure you that we have done everything in our
power to avoid this outcome.
"We are absolutely gutted by the situation we are now in, and in
are sorry for any disappointment or inconvenience this may you."
NGA URI: Court to Hear Wind-Up Petition on March 18
---------------------------------------------------
A petition to wind up the operations of Nga Uri O Whiti Te Ra Mai
Le Moana Trust will be heard before the High Court at Wellington on
March 18, 2025, at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Jan. 29, 2025.
The Petitioner's solicitor is:
Claudia Elizabeth Mazuecos
Legal Services, Asteron Centre
55 Featherston Street
PO Box 895
Wellington 6011
TITAN ACQUISITIONCO: Moody's Affirms B3 CFR, Alters Outlook to Pos.
-------------------------------------------------------------------
Moody's Ratings has affirmed Titan AcquisitionCo New Zealand
Limited's (Trade Me) B3 corporate family and senior secured first
lien term loan ratings. The outlook has been changed to positive
from stable.
RATINGS RATIONALE
Trade Me's outlook change to positive reflects Moody's expectations
of improved interest coverage and free cash flows over the next 12
to 18 months. This will be driven by a reduction of interest costs
stemming from recent interest rate cuts by the Reserve Bank of NZ
(RBNZ) and the refinancing of the company's second lien senior
secured term loan in August last year.
Despite macroeconomic headwinds in New Zealand and lower listing
volumes, Trade Me managed to grow revenues and EBITDA over the last
2 years through yield uplift initiatives, including annual price
reviews and higher penetration of more premium products, and a
focus on cost control. This reflects the company's strong
competitive position and highlights the benefits of Trade Me's
business diversification.
Moody's anticipates these drivers, together with an improvement in
listing volumes when the economy starts to recover, will support
stronger revenue and earnings growth over the next 12 to 18 months.
Trade Me's revenues and earnings are influenced by the country's
overall economic conditions, with the key drivers of listing
volumes being private consumption and discretionary spending,
unemployment and employment growth, residential property market
volumes and prices, and interest rates.
Moody's expects that macroeconomic conditions in New Zealand (NZ,
Aaa stable) will improve in the next 12 to 18 months, which would
drive volume improvements and stronger earnings growth for Trade
Me, and continue to support debt/EBITDA registering below 6.5x.
While Moody's expects improving macroeconomic conditions in New
Zealand to support Trade Me's credit profile, there is potential
for the economic recovery to be slower than anticipated, which
could delay the pace of Trade Me's earnings growth and deleveraging
in the near term.
Real GDP growth was flat in the last twelve months to September
2024, reflecting weak business investment, government spending and
consumer demand. However, Moody's expects real GDP to increase
modestly by 0.5% in fiscal year ending June 2025 before a more
pronounced recovery of 3.3% in fiscal 2026. The recovery will be
driven by lower inflation and interest rates, which will support a
recovery in consumer spending, business investment, house prices
and transaction activity. Moody's therefore expects listing volumes
to remain largely subdued in fiscal 2025 but to start to improve in
fiscal 2026 as the New Zealand economy recovers.
Moody's expects leverage - as measured by gross debt to EBITDA –
to improve to around 5.8x over the next 12 to 18 months supported
by solid earnings growth, which compares to 6.3x for the last
twelve months as of December 2024.
Moody's also expects interest coverage – as measured by EBITA to
interest expense – to remain weak at around 1.4x in fiscal 2025
but to improve to around 1.6x in fiscal 2026, driven by lower
interest rates and the reduction in the second lien debt margin.
The RBNZ has reduced its official cash rate by 175bps since August
2024, currently sitting at 3.75%. In addition, in August last year,
the company refinanced its existing NZD465 million second lien term
loan, extending its maturity to Oct-31 and reducing the margin by
50bps.
Trade Me's rating affirmation continues to reflect the company's
high leverage and weak interest coverage, exposure to current
macroeconomic headwinds in New Zealand, as well competition and
potential for new entrants in the company's industry.
Trade Me's credit profile continues to benefit from its leading
market position and strong brand awareness in New Zealand, good
business line diversity, strong margins, and low capex
requirements.
OUTLOOK
Trade Me's positive outlook reflects Moody's expectations that the
company's interest costs will reduce and improve its interest
coverage ratio and free cash flow generation. The positive outlook
also considers Moody's expectations that macroeconomic conditions
in New Zealand will improve in the next 12 to 18 months, which
could drive volume improvements and stronger earnings growth and
deleveraging for Trade Me.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if Trade Me continues to grow
earnings in the current macroeconomic environment, supporting a
sustained improvement in credit metrics.
In particular, Moody's could upgrade the ratings if: (1) adjusted
debt/EBITDA is sustained below 6.5x; (2) EBITA/interest expense is
sustained above 1.5x; and (3) the company generates positive free
cash flow (after debt service) on a consistent basis.
Moody's could downgrade the ratings if: (1) the company's
competitive position weakens, hurting the company's revenues or
profitability; (2) adjusted debt/EBITDA exceeds 7.5x; (3)
EBITA/interest expense is below 1.0x (4) there is sustained
negative free cashflow and/or liquidity deteriorates or is likely
to become inadequate.
LIQUIDITY
Trade Me's liquidity position is good. The company had around NZD64
million in cash and equivalents as of December 2024 and NZD150
million in undrawn revolving facilities that mature in October
2026. Moody's also expects the company to generate incremental
operating cash flows over the next 12 to 18 months.
The revolver has a springing first lien leverage covenant that
would require Trade Me to maintain first lien leverage below 8.75x,
tested quarterly, if more than 40% of the revolver is drawn.
Moody's expects the revolver to remain fully undrawn and for Trade
Me to maintain cushion under this covenant for the next 12 to 18
months.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) CONSIDERATIONS
Trade Me's ESG credit impact score of CIS-4 indicates that the
rating is lower than it would have been if ESG risk exposures did
not exist. Trade Me has credit exposure to governance risks due to
the company's private equity ownership, which results in
prioritization of shareholder interests over creditor interests,
such as more aggressive growth plans and strategies, including a
tolerance for higher debt and leverage. Trade Me also has credit
exposure to social risks stemming from customer relations and data
security risks as the company collects a large amount of personal
data through its online businesses.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
COMPANY PROFILE
Trade Me is the leading online marketplace and classified business
in New Zealand (NZ) with local scale across a breadth of service
offerings including auctions, fixed-price sales for new and used
goods (Marketplace) and classified advertisements for automotive
(Motors), real estate (Property) and employment (Jobs). Trade Me
also has web businesses specializing in display advertising,
payments, and accommodation. The company was acquired by Apax
Partners in 2019.
WB BUILDING: Court to Hear Wind-Up Petition on March 24
-------------------------------------------------------
A petition to wind up the operations of WB Building Solutions
Limited will be heard before the High Court at Tauranga on March
24, 2025, at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Feb. 7, 2025.
The Petitioner's solicitor is:
Timothy Saunders
Inland Revenue, Legal Services
21 Home Straight
PO Box 432
Hamilton
YOKE INSULATION: Court to Hear Wind-Up Petition on March 21
-----------------------------------------------------------
A petition to wind up the operations of Yoke Insulation Limited
will be heard before the High Court at Auckland on March 21, 2025,
at 10:45 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Dec. 17, 2024.
The Petitioner's solicitor is:
Hosanna Tanielu
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
=================
S I N G A P O R E
=================
ARMENOR PTE: Commences Wind-Up Proceedings
------------------------------------------
Members of Armenor Pte. Ltd. on Feb. 26, 2025, passed a resolution
to voluntarily wind up the company's operations.
The company's liquidator is:
Mr. Ng Hoe Kiat Keith
7500A Beach Road
#05-303/304 The Plaza
Singapore 199591
CORAL CAY: Creditors' Proofs of Debt Due on April 3
---------------------------------------------------
Creditors of Coral Cay Pte. Ltd. are required to file their proofs
of debt by April 3, 2025, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Feb. 25, 2025.
The company's liquidator is:
Teo Hwei Pin
808 French Road
#05-165, Kitchener Complex
Singapore 200808
NAMURBLACK INVESTMENTS: Creditors' Proofs of Debt Due on April 6
----------------------------------------------------------------
Creditors of Namurblack Investments Pte. Ltd. are required to file
their proofs of debt by April 6, 2025, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Feb. 28, 2025.
The company's liquidators are:
Goh Wee Teck
Ng Kian Kiat
c/o 8 Wilkie Rd
#03-08 Wilkie Edge
Singapore 228095
TN ASIA: Creditors' Proofs of Debt Due on April 7
-------------------------------------------------
Creditors of TN Asia Pte. Ltd. are required to file their proofs of
debt by April 7, 2025, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Feb. 27, 2025.
The company's liquidator is:
Chek Khai Juat
c/o Tricor Singapore
9 Raffles Place
#26-01 Republic Plaza
Singapore 048619
WILMAR KELLOGG: Creditors' Proofs of Debt Due on April 6
--------------------------------------------------------
Creditors of Wilmar Kellogg (Singapore) Pte. Ltd. are required to
file their proofs of debt by April 6, 2025, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Feb. 28, 2025.
The company's liquidator is:
Mr. Liew Khee Soon
60 Paya Lebar Road
#04-51, Paya Lebar Square
Singapore 409051
=====================
S O U T H K O R E A
=====================
HOMEPLUS CO: NPS Retrieves Half of KRW612 Billion Investment
------------------------------------------------------------
Yonhap News Agency reports that South Korea's state pension fund
said on March 7 it has recovered about half of its total investment
of KRW612.1 billion (US$423.5 million) in major retailer Homeplus
Co., which recently entered a court-led rehabilitation process amid
liquidity worries.
Yonhap says the National Pension Service (NPS) originally invested
in Homeplus through a fund, including KRW582.6 billion in
redeemable convertible preferred stock (RCPS), when private equity
firm MBK Partners acquired the retail chain in 2015.
RCPS is a hybrid financial instrument that offers investors fixed
dividends with the option to convert their holdings into ordinary
shares. It also gives the issuing company the right to redeem the
shares at a predetermined price or date.
According to Yonhap, the NPS said it has so far recouped KRW313.1
billion in RCPS through refinancing and dividends.
"The NPS has not agreed to changes to the terms of RCPS issuance,
and the terms remain the same as the time of the initial
investment," the NPS said, vowing to do its best to retrieve its
remaining investment.
About Homeplus Co
Homeplus Co. operates discount store chain in South Korea. It
currently operates 126 stores nationwide.
Homeplus entered court-led rehabilitation process on March 4 after
a Seoul court approved the request by MBK Partners, the private
equity fund that owns the discount store chain.
The decision came after Korea Investors Service and Korea Ratings
Inc. downgraded the company's rating.
=================
S R I L A N K A
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SRI LANKA: Reaches Deal With Japan to Restructure US$2.5BB in Debt
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Reuters reports that Sri Lanka and Japan signed agreements on March
7 to restructure US$2.5 billion worth of debt, completing two years
of talks that will assist the island nation in getting back on its
feet after a severe financial crisis.
According to Reuters, the agreements will allow the two countries
to restart projects, including an expansion of Sri Lanka's main
airport, which were suspended after the island nation announced in
April 2022 that it was defaulting on its foreign debt.
Reuters relates that the crisis left Sri Lanka struggling to pay
for fuel, medicine and cooking gas. But it has made a
faster-than-expected recovery, aided by a $2.9 billion bailout from
the International Monetary Fund (IMF), which approved the fourth
tranche of its program last month.
"Sri Lanka's journey to full economic recovery is far from over. We
must continue on the reform path and within the parameters of the
IMF program to ensure that Sri Lanka does not fall back into a
crisis," Mahinda Siriwardena, Sri Lanka's finance ministry
secretary, told reporters at the signing ceremony.
Sri Lanka entered into a preliminary deal with key lenders to
restructure bilateral debt last June, Reuters recalls. It still
needs to sign similar agreements with China for about $4.75 billion
in debt and with India for $1.4 billion in debt to continue the IMF
program.
China and Sri Lanka agreed on more investment and economic
cooperation when Chinese President Xi Jinping met recently elected
Sri Lankan President Anura Kumara Dissanayake in Beijing in
January, according to Reuters.
Colombo has also secured a deal to restructure $12.5 billion of its
debt with international bondholders in December, Reuters recalls.
About Sri Lanka
Sri Lanka, formerly known as Ceylon and officially the Democratic
Socialist Republic of Sri Lanka, is an island country in South
Asia. It lies in the Indian Ocean, southwest of the Bay of Bengal,
and southeast of the Arabian Sea; it is separated from the Indian
subcontinent by the Gulf of Mannar and the Palk Strait. Sri Lanka
shares a maritime border with India and the Maldives. Sri
Jayawardenepura Kotte is its legislative capital, and Colombo is
its largest city and financial centre.
The island nation defaulted on its foreign debt for the first time
in its history in April 2022 as the worst financial crisis since
independence from Britain in 1948 crushed its economy.
As reported in the Troubled Company Reporter-Asia Pacific early
this January, Fitch Ratings assigned a 'CCC+' foreign-currency
rating to Sri Lanka's governance-linked bonds maturing in 2035 and
a 'CCC+' local-currency rating to the US dollar step-up bonds
maturing in 2038, which the government can decide to repay in
rupees. Fitch does not rate the macro-linked bonds, which would not
be in line with its sovereign rating criteria.
The ratings are in line with Sri Lanka's Long-Term Foreign- and
Local-Currency Issuer Default Ratings (IDRs). On Dec. 20, 2024,
Fitch upgraded Sri Lanka's Long-Term Foreign-Currency IDR to
'CCC+', from 'RD' (Restricted Default). Fitch also upgraded the
Long-Term Local-Currency IDR to 'CCC+', from 'CCC-', to align with
the Long-Term Foreign-Currency IDR.
The TCR-AP reported in late Dec. 2024, Moody's Ratings has upgraded
the Government of Sri Lanka's long-term foreign currency issuer
rating to Caa1 from Ca. The outlook is stable. Previously, the
rating was on review for upgrade.
The TCR-AP also reported that S&P Global Ratings on Dec. 27, 2024,
affirmed its 'SD/SD' (selective default) long- and short-term
foreign currency and 'CCC+/C' long- and short-term local currency
sovereign credit ratings on Sri Lanka. The outlook on the long-term
local currency rating is stable. S&P also revised upward its
transfer and convertibility assessment on Sri Lanka to 'CCC+' from
'CCC' previously. At the same time, S&P assigned its 'CCC+' issue
ratings to three categories of Sri Lanka's post-restructuring new
notes.
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S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2025. All rights reserved. ISSN: 1520-9482.
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