/raid1/www/Hosts/bankrupt/TCRAP_Public/250326.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Wednesday, March 26, 2025, Vol. 28, No. 61
Headlines
A U S T R A L I A
BLUE2 ENTERTAINMENT: First Creditors' Meeting Set for March 28
DROP BEAR: Second Creditors' Meeting Set for March 28
EMERGENCY CLINIC: First Creditors' Meeting Set for March 31
GENETIC TECHNOLOGIES: Executes Deed of Company Arrangement
GML MARKETING: First Creditors' Meeting Set for March 31
PEPPER RESIDENTIAL 38: Moody's Ups Rating on Class F Notes to Ba3
REDZED TRUST 2025-1: Fitch Assigns 'B+sf' Rating on Class F Notes
SECOND SPHERE: First Creditors' Meeting Set for March 28
VERMILE PTY: Owes More Than AUD116MM, Liquidator Reports Show
C H I N A
KAISA GROUP: Wins Hong Kong Court Approval for Offshore Debt Plan
SUNAC CHINA: Working on Second Restructuring of Offshore Debt
I N D I A
AARTI SUITINGS: CARE Keeps D Debt Ratings in Not Cooperating
ADIG JEMTEX: CARE Keeps D Debt Rating in Not Cooperating Category
AGRAWAL TECHNICAL: Ind-Ra Cuts Term Loan Rating to B
AXORA RESOURCES: ICRA Lowers Rating on INR50cr LT Loan to D
BIO AGRO: Ind-Ra Cuts Term Loan Rating to D
BULANDSHAHR ROLLER: CARE Keeps B- Debt Rating in Not Cooperating
BULLAND BUILDTECH: CARE Keeps D Debt Rating in Not Cooperating
CHAMUNDESWARI SUGARS: Ind-Ra Assigns BB+ Bank Loan Rating
FATEHABAD BIO: CARE Lowers Rating on INR54.75cr LT Loan to B+
GCRG MEMORIAL: Ind-Ra Keeps D Loan Rating in NonCooperating
HIGHWAY ENGINEERING: ICRA Cuts Rating on INR10cr LT Loan to B+
INDIAN CANE: Ind-Ra Cuts Term Loan Rating to BB+, Outlook Stable
JUBILEE HILLS: Ind-Ra Keeps D Loan Rating in NonCooperating
KAKINADA SEZ: Ind-Ra Cuts Loan Rating to BB+, Outlook Negative
KAMINENI EDUCATIONAL: Ind-Ra Cuts Term Loan Rating to BB-
KRISHNA EDUCATIONAL: Ind-Ra Keeps D Loan Rating in NonCooperating
KUMAR SINEW: Ind-Ra Moves D Loan Rating to Non-Cooperating
L.N. MALVIYA: ICRA Lowers Rating on INR55cr LT Loan to B+
LODZ DENIM: Ind-Ra Moves BB+ Loan Rating to Non-Cooperating
MANGE RAM: CARE Lowers Rating on INR15cr LT Loan to B
MANIYARPUR DAIRY: CARE Lowers Rating on INR28cr LT Loan to D
MANTRI INFRASTRUCTURE: CARE Keeps D Debt Rating in Not Cooperating
MGM HEALTHCARE: Ind-Ra Assigns BB+ Loan Rating, Outlook Stable
NOVELTY ASSOCIATES: Ind-Ra Keeps BB Loan Rating in NonCooperating
ORIENT CRAFT: CARE Keeps D Debt Ratings in Not Cooperating
OUR CO: ICRA Keeps D Debt Rating in Not Cooperating Category
PANCHSHEEL SOLVENT: ICRA Withdraws D Rating on INR12.50cr Loan
RIVER FRONT: Ind-Ra Hikes Loan Rating to BB, Outlook Stable
RURAL IMPROVEMENT: Ind-Ra Cuts Bank Loan Rating to B-
S.K. AGROS: ICRA Keeps B Debt Ratings in Not Cooperating Category
SAANJ AUR: ICRA Keeps B+ Debt Rating in Not Cooperating Category
SAI MAATARINI: Ind-Ra Keeps D Loan Rating in NonCooperating
SHARADHA TIMBERS: ICRA Keeps D Debt Ratings in Not Cooperating
SIDDARTH ORGANISATION: ICRA Keeps B+ Ratings in Not Cooperating
SIESTA LAMINATES: CARE Lowers Rating on INR25cr LT Loan to B
SOMA NUTRITION: ICRA Keeps D Debt Ratings in Not Cooperating
SSI GOLD: Ind-Ra Hikes LongTerm Rating to BB+, Outlook Stable
TAJ AGRO COMMODITIES: ICRA Keeps B+/A4 Ratings in Not Cooperating
TAJ AGRO: ICRA Keeps B+ Debt Rating in Not Cooperating Category
TAPASYA SHIKSHA: CARE Lowers Rating on INR6.55cr LT Loan to B
TIRUPATI STRUCTURES: Ind-Ra Affirms B+ Bank Loan Rating
TRIMURTHI HITECH: ICRA Keeps C+ Debt Ratings in Not Cooperating
TRIVENI WIRES: Ind-Ra Withdraws BB+ Term Loan Rating
VADIM INFRASTRUCTURE: ICRA Keeps D Ratings in Not Cooperating
VAISHNAVI FOOD: ICRA Keeps B- Debt Rating in Not Cooperating
VAKRANGEE FOUNDATION: Ind-Ra Cuts Term Loan Rating to B-
VEERAJ CONSTRUCTION: ICRA Keeps D Debt Ratings in Not Cooperating
VIJAY INDUSTRIES: ICRA Keeps B+ Debt Rating in Not Cooperating
VIKRANT FORGE: Ind-Ra Moves B- Loan Rating to Non-Cooperating
WAVIN INDUSTRIES: Ind-Ra Places BB+ Bank Loan on Rating Watch
WEST GUJARAT: Ind-Ra Affirms D NonConvertible Debts Rating
WOODIND: ICRA Keeps D Debt Ratings in Not Cooperating Category
ZINZUWADIA BROTHERS: ICRA Keeps B+ Debt Rating in Not Cooperating
M A L A Y S I A
CAPITAL A: Deadline for Aviation Assets Takeover Extended to May 30
N E W Z E A L A N D
3 SWEETS: Court to Hear Wind-Up Petition on April 3
APEX SECURITY: Court to Hear Wind-Up Petition on May 2
CHALLENGE MARINE: In Liquidation; Owes NZD1.2MM to IRD & ACC
FAVORABLE BUY: Creditors' Proofs of Debt Due on April 20
FOSSIL FUEL: Creditors' Proofs of Debt Due on April 16
LUME TRUSTEE: Court to Hear Wind-Up Petition on April 4
PARTY KINGDOM: Placed in Liquidation; Owe More Than NZD200,000
S I N G A P O R E
CAROMA SINGAPORE: Creditors' Proofs of Debt Due on April 22
CITADINES KYOTO: Creditors' Proofs of Debt Due on April 21
KB-MAX PTE: Court to Hear Wind-Up Petition on April 4
PROOFER BAKERY: Court to Hear Wind-Up Petition on April 4
TIMEMOVER PTE: Court to Hear Wind-Up Petition on April 4
S O U T H K O R E A
[] SOUTH KOREA: Insolvent Companies Hit 6-Year High
S R I L A N K A
[] SRI LANKA: Some Non-Profit State Entities Face Likely Closure
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A U S T R A L I A
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BLUE2 ENTERTAINMENT: First Creditors' Meeting Set for March 28
--------------------------------------------------------------
A first meeting of the creditors in the proceedings of Blue2
Entertainment Pty Ltd will be held on March 28, 2025 at 11:00 a.m.
at the offices of Mackay Goodwin at Level 2 68 St Georges Terrace
in Perth and via Teams.
Mathieu Tribut of Mackay Goodwin was appointed as administrator of
the company on March 18, 2025.
DROP BEAR: Second Creditors' Meeting Set for March 28
-----------------------------------------------------
A second meeting of creditors in the proceedings of Drop Bear Bytes
Pty Ltd has been set for March 28, 2025 at 11:00 a.m. at the
offices of WLP Restructuring at Suite 19.02, Level 19, 1
Castlereagh St in Sydney and via electronic facilities.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by March 27, 2025 at 12:00 p.m.
Glenn Livingstone and Benjamin Ho of WLP Restructuring were
appointed as administrators of the company on Feb. 20, 2025.
EMERGENCY CLINIC: First Creditors' Meeting Set for March 31
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of Emergency
Clinic Erina Pty Ltd will be held on March 31, 2025 at 2:00 p.m. by
virtual meeting technology.
Andrew Blundell and Simon Cathro of Cathro Partners were appointed
as administrators of the company on March 19, 2025.
GENETIC TECHNOLOGIES: Executes Deed of Company Arrangement
----------------------------------------------------------
TipRanks reports that Genetic Technologies Limited, currently under
voluntary administration, has executed a Deed of Company
Arrangement (DOCA) with Benelong Capital Partners Pty Ltd. This
development follows a resolution by creditors and involves the
company's recapitalization, subject to shareholder approval.
TipRanks relates that the Deed Administrators, appointed by FTI
Consulting, will oversee the process until all conditions are met,
impacting shareholder interests as detailed notices will be issued
soon.
Victoria, Australia-based Genetic Technologies Limited (ASX: GTG;
Nasdaq: GENE) -- https://genetype.com/
-- is a molecular diagnostics company. A global leader in
genomics-based tests in health, wellness, and serious disease
through its geneType and EasyDNA brands. GTG offers cancer
predictive testing and assessment tools to help physicians to
improve health outcomes for people around the world. The company
has a proprietary risk stratification platform that has been
developed over the past decade and integrates clinical and genetic
risk to deliver actionable outcomes to physicians and individuals.
Andrew Michael Smith and Robert Allan Jacobs of Auxuilium Partners
were appointed as administrators of the company on Nov. 20, 2024.
GML MARKETING: First Creditors' Meeting Set for March 31
--------------------------------------------------------
A first meeting of the creditors in the proceedings of GML
Marketing Pty Ltd will be held on March 31, 2025 at 11:00 a.m. via
virtual meeting.
Robert William Hutson and Richard Tucker of KordaMentha were
appointed as administrators of the company on March 19, 2025.
PEPPER RESIDENTIAL 38: Moody's Ups Rating on Class F Notes to Ba3
-----------------------------------------------------------------
Moody's Ratings has upgraded the ratings on five classes of notes
issued by Pepper Residential Securities Trust No. 38.
The affected ratings are as follows:
Issuer: Pepper Residential Securities Trust No. 38
Class B Notes, Upgraded to Aaa (sf); previously on May 31, 2024
Upgraded to Aa1 (sf)
Class C Notes, Upgraded to Aa1 (sf); previously on May 31, 2024
Upgraded to Aa3 (sf)
Class D Notes, Upgraded to A1 (sf); previously on May 31, 2024
Upgraded to A3 (sf)
Class E Notes, Upgraded to Baa3 (sf); previously on May 31, 2024
Upgraded to Ba1 (sf)
Class F Notes, Upgraded to Ba3 (sf); previously on Sep 7, 2023
Definitive Rating Assigned B2 (sf)
A comprehensive review of all credit ratings for the transaction
has been conducted during a rating committee.
RATINGS RATIONALE
The upgrades were prompted by (1) an increase in credit enhancement
available for the affected notes, and (2) the collateral
performance to date.
No actions were taken on the remaining rated classes in the deal as
credit enhancement remains commensurate with the current rating for
the respective notes.
Following the February 2025 payment date, credit enhancement
available for the Class B, Class C, Class D and Class E Notes has
increased to 11.1%, 9.8%, 6.3%, and 4.4% respectively, from 7.8%,
6.9%, 4.4% and 3.1% at the last rating action in May 2024. Credit
enhancement available for Class F Notes has increased to 2.1% from
0.8% at closing. Principal collections are currently distributed on
a pro-rata basis between Class A1 and Class A2 Notes. Current total
outstanding notes as a percentage of the total closing balance is
47.6%.
As of January 2025, 4.0% of the outstanding pool was 30-plus day
delinquent and 1.9% was 90-plus day delinquent. The deal has not
incurred any losses to date.
Based on the observed performance to date and loan attributes,
Moody's have maintained Moody's expected loss assumption at 1.9% of
the outstanding pool balance (equivalent to 0.9% of the original
pool balance) from the last rating action. Moody's have also
maintained Moody's MILAN CE assumption at 7.5%.
The transaction is an Australian RMBS secured by a portfolio of
residential mortgage loans, originated by Pepper Homeloans Pty
Limited and serviced by Pepper Money Limited. A portion of the
portfolio consists of loans extended to borrowers with prior credit
impairment or made on an alternative documentation basis.
The principal methodology used in these ratings was "Residential
Mortgage-Backed Securitizations" published in October 2024.
Factors that would lead to an upgrade or downgrade of the ratings:
Factors that could lead to an upgrade of the ratings include (1)
performance of the underlying collateral that is better than
Moody's expectations, and (2) an increase in credit enhancement
available for the notes.
Factors that could lead to a downgrade of the ratings include (1)
performance of the underlying collateral that is worse than Moody's
expectations, (2) a decrease in the notes' available credit
enhancement, and (3) a deterioration in the credit quality of the
transaction counterparties.
REDZED TRUST 2025-1: Fitch Assigns 'B+sf' Rating on Class F Notes
-----------------------------------------------------------------
Fitch Ratings has assigned final ratings to RedZed Trust STC Series
2025-1's mortgage-backed pass-through floating-rate bonds. The
issuance consists of notes backed by a pool of first-ranking
Australian conforming and non-conforming residential full- and
low-documentation mortgage loans as well as small-ticket commercial
(STC) loans originated by RedZed Lending Solutions Pty Limited.
The notes were issued by Perpetual Trustee Company Limited in its
capacity as trustee of RedZed Trust STC Series 2025-1. This is a
separate and distinct series created under a master trust deed.
The final rating on the class F note is one notch higher than the
expected rating. This is due to the reduction in the transaction's
weighted-average (WA) note margin from the indicative WA note
margin previously modelled, which increases the excess spread
available.
Entity/Debt Rating Prior
----------- ------ -----
RedZed Trust STC
Series 2025-1
A AU3FN0096491 LT AAAsf New Rating AAA(EXP)sf
B AU3FN0096509 LT AAsf New Rating AA(EXP)sf
C AU3FN0096517 LT Asf New Rating A(EXP)sf
D AU3FN0096525 LT BBBsf New Rating BBB(EXP)sf
E AU3FN0096533 LT BBsf New Rating BB(EXP)sf
F AU3FN0096541 LT B+sf New Rating B(EXP)sf
G1 LT NRsf New Rating NR(EXP)sf
G2 LT NRsf New Rating NR(EXP)sf
Transaction Summary
The collateral pool is unchanged from the expected rating and
totalled AUD600 million. The pool consisted of 833 obligors at the
31 December 2024 cut-off date.
KEY RATING DRIVERS
Sufficient Credit Enhancement: The class A, B, C, D, E and F notes
benefit from credit enhancement of 15.0%, 9.6%, 6.6%, 3.9%, 1.8%
and 0.5%, respectively. The transaction is backed by residential
loans, which form 81.2% of the pool, and STC loans, which form
18.8%.
The combined 'AAAsf' portfolio loss is 13.3% (residential 8.8% and
STC 32.7%), against 13.2% (residential 7.1% and STC 31.7%) for the
previous transaction, RedZed Trust STC Series 2024-1. The increase
in residential portfolio loss is due to higher WA current and
indexed scheduled loan/value ratios and under Fitch's methodology,
a higher proportion of non-conforming loans. The increase in STC
portfolio loss is due to a higher one-year probability of default
(PD).
STC Borrower Credit Risk: Historical data analysis for the STC
portion of the pool was performed to derive a one-year PD
assumption of 1.7%, based on the underlying portfolio's annual
average historical 90 days past due. This is higher than 1.3% at
RedZed STC 2024-1's closing to account for the higher defaults in
2024. Fitch added the default probability assumption to its
proprietary Portfolio Credit Model (PCM), which also considers
other key variables, such as portfolio amortisation profile,
obligor concentration and industry distribution.
Empirical data show that not all loans that become 90 days past due
will end in foreclosure. Fitch has analysed the cure rate for
RedZed's STC portfolio for loans that entered 90 days past due and
concluded that around 50% of these loans were cured. In line with
the SME Balance Sheet Securitisation Rating Criteria, Fitch has
capped the base expected cure rate assumption at 40%, and tiered it
for higher rating scenarios. The cure rates are then applied to the
PD from PCM. The STC portfolio's 'AAAsf' default probability after
the application of cure rate drops to 53.8%.
STC Recovery Rate Lower than for Residential: Fitch applied
collateral haircuts for the STC portion of the pool that are in
line with the SME Balance Sheet Securitisation Rating Criteria. The
'AAAsf' WA recovery rate (WARR) for the STC portion of 39.2% is
lower than the 52.2% 'AAAsf' WARR for the residential portion.
Exposure to Obligor Concentration: Its PCM modelling, which
stresses default probability, correlation and recovery assumptions
for large groups of obligors, found that the pool's largest obligor
and the top-10 obligors account for 2.1% and 17.8%, respectively,
of the STC asset balance.
Limited Liquidity Risk: Fitch's payment interruption risk is
mitigated by a liquidity facility sized at 1.5% of the invested
note balance (excluding class G1 and G2 notes), with a floor of
AUD900,000. Other structural features include retention amounts
that redirect excess available income to repay note principal in
reverse sequential order (excluding class G1 and G2 notes) with a
limit of AUD500,000, and post-call amortisation amounts that
redirect after-tax excess income to repay note principal through
the principal priority of payments waterfall.
Low Operational and Servicing Risk: RedZed, established in 2006, is
an experienced specialist lender for self-employed borrowers. Fitch
undertook an operational review and found that the operations of
the originator and servicer were comparable with the market.
Tight Labour Market to Support Outlook: Portfolio performance is
supported by Australia's continued growth and tight labour market,
despite rapid interest-rate hikes in 2022-2023. GDP growth was 1.3%
for the year ended December 2024 and unemployment was 4.1% in
January 2025. Fitch forecasts GDP growth of 1.6% in 2025, with
unemployment increasing to 4.5%. This reflects Fitch's expectation
that the effects of restrictive monetary policy and persistent
inflation will continue to hinder domestic demand.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
A downgrade could stem from portfolio composition migrating towards
STC loans, as the STC loans attract a higher portfolio loss than
residential loans. Portfolio migration may occur if residential
loans were to have a higher prepayment rate, increasing the
concentration of STC loans. Transaction performance may also be
affected by changes in market conditions and the economic
environment.
Downgrade Sensitivities
Unanticipated deterioration in the frequency of defaults and
recoveries could produce loss levels higher than Fitch's base case
and are likely to result in a decline in credit enhancement and
remaining loss-coverage levels available to the notes. Decreased
credit enhancement may make certain note ratings susceptible to
negative rating action, depending on the extent of coverage
decline. Hence, Fitch conducts sensitivity analysis by stressing a
transaction's initial base-case assumptions.
Note: A / B / C / D / E / F
Final Ratings: AAAsf / AAsf / Asf / BBBsf / BBsf / B+sf
Increase defaults by 15%: AA+sf / A+sf / BBB+sf / BBB-sf / BB-sf /
Bsf
Increase defaults by 30%: AA+sf / A+sf / BBB+sf / BB+sf / B+sf /
less than Bsf
Reduce recoveries by 15%: AA+sf / A+sf / BBB+sf / BB+sf / B+sf /
less than Bsf
Reduce recoveries by 30%: AA+sf / Asf / BBBsf / BB+sf / Bsf / less
than Bsf
Increase defaults by 15% and reduce recoveries by 15%: AA+sf / Asf
/ BBBsf / BB+sf / B+sf / less than Bsf
Increase defaults by 30% and reduce recoveries by 30%: A+sf /
BBB+sf / BB+sf / B+sf / less than Bsf / less than Bsf
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
An upgrade could result from economic conditions, loan performance
and credit losses that are better than Fitch's baseline scenario or
sufficient build-up of credit enhancement that would fully
compensate for credit losses and cash flow stresses commensurate
with higher rating scenarios, all else being equal.
Upgrade Sensitivities
The class A notes' ratings are at the highest level on Fitch's
scale and cannot be upgraded.
Upgrades of the class C and D notes are constrained by one notch,
while the class E note is constrained by two notches, due to the
pro rata amortisation concentration test as per the SME Balance
Sheet Securitisation Rating Criteria.
Note: B / C / D / E / F
Final Ratings: AAsf / Asf / BBBsf / BBsf / B+sf
Reduce defaults by 15% and increase recoveries by 15%: AA+sf / A+sf
/ BBB+sf / BB+sf / BB+sf
CRITERIA VARIATION
The transaction features a threshold rate mechanism. This is a
common feature in Australian RMBS and is therefore contemplated
under the APAC Residential Mortgage Rating Criteria. However, 18.8%
of the pool consisted of STC loans, respectively, which were
analysed under the SME Balance Sheet Securitisation Rating
Criteria, which do not contemplate the concept of a threshold rate
and, instead, WA margin compression is generally modelled. Fitch
has applied the threshold rate for both the residential and STC
portions of the pool.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
Prior to the transaction closing, Fitch sought to receive a
third-party assessment conducted on the asset portfolio
information, but none was made available for this transaction.
As part of its ongoing monitoring, Fitch conducted a review of a
small targeted sample of the originator's origination files and
found the information contained in the reviewed files to be
adequately consistent with the originator's policies and practices
and the other information provided to the agency about the asset
portfolio.
Overall, and together with any assumptions referred to above,
Fitch's assessment of the information relied upon for the agency's
rating analysis according to its applicable rating methodologies
indicates that it is adequately reliable.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
SECOND SPHERE: First Creditors' Meeting Set for March 28
--------------------------------------------------------
A first meeting of the creditors in the proceedings of Second
Sphere Partners Pty Ltd will be held on March 28, 2025 at 10:00
a.m. virtually via Microsoft Teams.
Alan Walker and Nicholas Charlwood of WLP Restructuring were
appointed as administrators of the company on March 18, 2025.
VERMILE PTY: Owes More Than AUD116MM, Liquidator Reports Show
-------------------------------------------------------------
The Age reports that a freight empire has collapsed with massive
debts of more than AUD116 million, while its high-flying director
insists he will launch fresh bankruptcy proceedings against former
AFL manager Ricky Nixon over an alleged debt of AUD40,000.
According to The Age, family-owned Austrans Container Services was
placed into liquidation last July, but documents filed with the
corporate regulator reveal Gregory O'Shea is being investigated
over allegations he repeatedly breached his director duties and
allowed the company to trade while insolvent.
A statutory report by liquidator Cor Cordis also confirmed it was
examining claims that unfair preference payments and uncommercial
transactions were made before Austrans' sudden demise.
"A number of stakeholders have raised concerns about the company's
conduct during the period prior to our appointment. The concerns
raised appear to relate to the misappropriation of company and
customer assets," according to the report by Cor Cordis chief
executive Daniel Juratowitch, The Age relays.
The Age relates that the report, filed in October with the
Australian Securities and Investments Commission, stated that any
recovery of assets in the liquidation is "highly unlikely".
Mr. Juratowitch also advised creditors his investigation had been
hampered by inadequate information from Austrans and its sole
director, including a failure by Mr. O'Shea to provide a personal
statement of his assets and liabilities.
The long list of creditors includes 160 former employees who are
owed more than AUD1.7 million in unpaid wages, superannuation and
other entitlements, The Age discloses.
However, the liquidation of Austrans has failed to curb Mr.
O'Shea's lavish lifestyle. The 36-year-old and his wife, Sarah
Fyfe, sold a historic Toorak mansion for about AUD7 million in
January. He now rents a luxury home in Brighton East for more than
AUD3,000 a week.
The Age relates that Mr. O'Shea, who took over the 37-year-old
business from his father, said it had been sabotaged by a rival
transport company, which he accused of illegally suspending its
services to derail Austrans and its holding company, Vermile Pty
Ltd.
"I categorically deny all the allegations in the liquidator's
report. The report is vague, outdated and contains inaccuracies
concerning the inflated debt of AUD116 million which has been
substantially exaggerated due to excited creditors adding a decimal
point here, and a few extra zeros there," The Age quotes Mr. O'Shea
as saying.
"When the time comes for Cor Cordis to substantiate the debt of
AUD116 million, I'll be happy to work with them," he said.
Daniel Peter Juratowitch, Sam Kaso and Catherine Conneely of Cor
Cordis were appointed as liquidators of Vermile Pty. Limited,
trading as Austrans Container Service.
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C H I N A
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KAISA GROUP: Wins Hong Kong Court Approval for Offshore Debt Plan
-----------------------------------------------------------------
Bloomberg News reports that Kaisa Group Holdings Ltd. won a Hong
Kong court's approval for its offshore restructuring, according to
people familiar with the matter, clearing the way for it to proceed
with its debt plan.
Bloomberg relates that the development comes after Hong Kong High
Court Judge Linda Chan reserved a decision on the restructuring on
March 21, saying that she needed to check on some matters, without
elaborating. Companies often receive approval for such plans as the
hearings wrap up.
On March 21, Judge Chan had asked the company about a work fee to
be paid to an ad-hoc group of creditors. The company had earlier
reduced the fee to 1%.
The High Court didn't reply to a request for comment, Bloomberg
notes.
Even if a company gets court approval, it still faces challenges. A
number of builders that also passed this stage in their
restructurings are heading back to square one, after fresh
liquidity problems amid a prolonged property crisis made it harder
for them to honour their promises.
Kaisa will still face a winding-up hearing on March 31, Bloomberg
notes.
About Kaisa Group
Kaisa Group Holdings Ltd is a major Chinese real estate developer
of large-scale residential properties and integrated commercial
properties. Kaisa issued the most offshore debt among Chinese
developers after China Evergrande Group.
Kaisa was China's first real estate company to default on an
overseas bond in 2015, but it was able to recover in 2017. By late
2021, Kaisa defaulted on $12 billion of its offshore debt.
In July 2023, Kaisa faced a winding-up petition filed in a Hong
Kong court in relation to non-payment of CNY170 million (US$23.50
million) onshore bonds. The petitioners were Broad Peak Investment
Pte Advisers Ltd, and the issuer of the yuan bonds is Kaisa's
wholly-owned subsidiary, Kaisa Group (Shenzhen) Co Ltd.
Since then, Kaisa has been working to restructure its debt.
In March 2024, Citicorp International, as bond trustee for a major
group of dollar bondholders, replaced the original petitioners.
Citicorp filed a petition when Kaisa failed to pay a US$750 million
bond. Broad Peak withdrew from the case as it sold its debt
holdings in early 2024.
By August 2024, Kaisa Group reached an offshore debt restructuring
agreement with a key group of bondholders, swapping existing debt
into new notes and shares in the company. Kaisa proposed to issue
US$5 billion worth of new bonds maturing in 2027 to 2032, and
US$4.8 billion of mandatory convertible bonds to repay creditors.
SUNAC CHINA: Working on Second Restructuring of Offshore Debt
-------------------------------------------------------------
Reuters reports that Sunac China has become the first Chinese
property developer to plan a second restructuring of its offshore
debt.
According to Reuters, the company said in a filing on March 24 it
would seek a more comprehensive debt solution "to address its
current offshore debt risks", citing the impact of a liquidation
petition against the company, and weak market conditions.
It has appointed Houlihan Lokey and Sidley Austin as its financial
and legal advisors, respectively, Reuters relays.
Early in the day on March 24, the lawyer of a unit of state-owned
asset manager Cinda told a Hong Kong court Sunac had informed it
about the restructuring intention, Reuters relates.
According to Reuters, Cinda (HK) filed a liquidation petition this
year against Sunac over the non-payment of a $30 million loan.
Reuters relates that the petition surprised many in the market
because Sunac completed a $9 billion offshore debt restructuring in
2023, the first developer in China's property sector to do so since
the debt crisis that began in 2021.
Once accounting for a quarter of China's GDP, the sector has
struggled to recover from a liquidity crisis triggered by a
regulatory crackdown on developer debt, leaving projects unfinished
and buyers wary.
A lawyer for Cinda, Thomas Wong of Temple Chambers, sought an
immediate liquidation of Sunac in March 24's hearing, saying the
developer had not provided any documents of a new restructuring
plan. The hearing was adjourned to April 28 to allow Sunac to
present its progress, Reuters relays.
The company had informed some of its dollar creditors it was
unlikely to meet a September deadline for its first tranche of
restructured notes, Reuters reported in January.
Cinda's $30 million loan is expected to be included in the second
restructuring, Mr. Wong told Reuters outside the court. It was not
included in the first round. The company hasn't disclosed when the
loan was due.
Sunac had total borrowings, including onshore and offshore, of
CNY227.43 billion ($38.23 billion) as of end-June. It had total
cash of CNY25.7 billion, Reuters discloses.
It restructured $2.1 billion worth of onshore bonds late last year
and cut the debt by more than half. It still needs to negotiate
restructuring terms with creditors on other onshore loans.
Cinda, which is also a major lender to Sunac in mainland China, is
using the Hong Kong petition to raise its bargaining power for
negotiations on both its onshore and offshore loans, according to
two people familiar with the situation. They declined to be named
due to the sensitivity of the issue, Reuters relays.
About Sunac China
Sunac China Holdings Limited (SEHK:1918) --
http://www.sunac.com.cn/-- engages in the sales of properties in
the People's Republic of China. The Company operates its business
through two segments: Property Development and Property Management
and Others. The Company's subsidiaries include Sunac Real Estate
Investment Holdings Ltd., Qiwei Real Estate Investment Holdings
Ltd. and Yingzi Real Estate Investment Holdings Ltd.
Sunac is among a string of Chinese property developers that have
defaulted on their offshore debt payment obligations since the
sector was hit by a liquidity crisis in 2021, roiling global
markets, according to Reuters.
Creditors of Sunac China Ltd have approved its NZD9 billion
offshore debt restructuring plan, the company said on Sept. 18,
2023, marking the first approval of such debt overhaul by a major
Chinese property developer.
Sunac China Holdings Limited sought creditor protection in the
United States under Chapter 15 of the Bankruptcy Code (Bankr.
S.D.N.Y. Case No. 23-11505) on Sept. 19, 2023. U.S. Bankruptcy
Judge Philip Bentley presides over the Chapter 15 proceedings.
Sidley Austin is the legal counsel to Sunac China.
=========
I N D I A
=========
AARTI SUITINGS: CARE Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Aarti
Suitings Private Limited (ASPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 16.72 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 0.55 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated March 19, 2024,
placed the rating(s) of ASPL under the 'issuer non-cooperating'
category as ASPL had failed to provide information for monitoring
of the rating as agreed to in its Rating Agreement. ASPL continues
to be non-cooperative despite repeated requests for submission of
information through e-mails dated February 2, 2025, February 12,
2025 and February 22, 2025 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
Bhilwara based Aarti Sutings Private Limited (ASPL) was
incorporated in 1994 by Mr. Nand Kishore Jindal, Mr. Madhur Jindal
and Mrs. Nidhi Jindal. The company is engaged in the manufacturing
of grey fabrics and sells grey and finished fabrics in the market.
The company gets processing work done on job work basis from other
processing units. The company is also engaged in trading of grey
and finished fabrics.
ADIG JEMTEX: CARE Keeps D Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Adig Jemtex
Private Limited (AJPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 27.43 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated March 19, 2024,
placed the rating(s) of AJPL under the 'issuer non-cooperating'
category as AJPL had failed to provide information for monitoring
of the rating as agreed to in its Rating Agreement. AJPL continues
to be non-cooperative despite repeated requests for submission of
information through e-mails dated February 2, 2025, February 12,
2025 and February 22, 2025 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
Bhilwara (Rajasthan) based Adig Jemtex Private Limited (AJPL) was
incorporated by Mr. Nand Kishore Jindal and Mr. Madhur Jindal in
2010. Subsequently, there was change in share holding pattern in
2014 with exit of Mr. Madhur Jindal and entry of two new directors
namely, Mr. Akash Jindal and Mrs. Kavita Jindal. Initially, AJPL
was engaged in the business of seizing of yarns (mainly starching
process) and trading of grey and finished fabrics. However, from
June 2017, it has started commercial production of grey fabrics.
The plant of the company is located at Bhilwara.
AGRAWAL TECHNICAL: Ind-Ra Cuts Term Loan Rating to B
----------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Shri Agrawal
Technical & Education Society rating to IND B/Negative (ISSUER NOT
COOPERATING). The issuer did not participate in the surveillance
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:
-- INR149 mil. Fund Based Working Capital Limit downgraded with
IND B/Negative (ISSUER NOT COOPERATING) rating; and
-- INR181.7 mil. Term loan due on December 31, 2026 downgraded
with IND B/Negative (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Detailed Rationale of the Rating Action
The downgrade is in accordance with Ind-Ra's policy of Guidelines
on What Constitutes Non-Cooperation. As per the policy, ratings of
non-cooperative ratings issuers may get downgraded during
subsequent reviews, if the issuer continues to remain
non-cooperative. With passage of time and absence of updated
information, the risk of sustaining the rating at current levels by
relying on dated information increases, which may be reflected
through a downgrade rating action
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with Shri Agrawal Technical &
Education Society while reviewing the rating. Ind-Ra had
consistently followed up with Shri Agrawal Technical & Education
Society over emails, apart from phone calls.
Limitations regarding Information Availability
Ind-Ra has reviewed the credit ratings of Shri Agrawal Technical &
Education Society on the basis of best available information and is
unable to provide a forward-looking credit view. Hence, the current
outstanding rating might not reflect Shri Agrawal Technical &
Education Society'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.
About the Company
Registered under the Madhya Pradesh Society Registration Act, 1973,
Shri Agrawal Technical & Education Society was set up by Sanjeev
Agarwal in June 2002.
AXORA RESOURCES: ICRA Lowers Rating on INR50cr LT Loan to D
-----------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Axora
Resources Limited, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 50.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund Based- Rating downgraded from
Cash Credit [ICRA]B+(Stable); ISSUER NOT
COOPERATING and continues to
remain under 'Issuer Not
Cooperating' category
Short Term- 13.00 [ICRA]D; ISSUER NOT COOPERATING;
Non-Fund Based- Rating downgraded from
Letter of Credit [ICRA]A4; ISSUER NOT COOPERATING
and continues to remain under
'Issuer Not Cooperating'
category
Long Term/ 27.00 [ICRA]D/[ICRA]D; ISSUER NOT
Short Term- COOPERATING; downgraded from
[ICRA]B+(Stable)/[ICRA]A4;
ISSUER NOT COOPERATING and
continues to remain under
'Issuer Not Cooperating'
Category
Rationale
The rating of Axora Resources Limited is downgraded based on the
feedback received by its lender where it has been confirmed that
the account of the entity has been classified as NPA.
Impact of material event
The rating is based on limited information on the entity's
performance since the time it was last rated November 2023. The
lenders, investors and other market participants are thus advised
to exercise appropriate caution while using this rating as the
rating may not adequately reflect the credit risk profile of the
entity, despite the downgrade.
As part of its process and in accordance with its rating agreement
with Axora Resources Limited, ICRA has been trying to seek
information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the “Issuer Not Cooperating” category. The rating
is based on the best available information.
Founded in 1994, Axora Resources Limited specialises in processing
of lead, tin, antimony and other non-ferrous metals. It started its
operations in FY2020 and has a manufacturing plant in Chittoor,
Andhra Pradesh. The company is promoted by Mr. Vijendra Kedia, a
commerce graduate having more than 25 years of experience in the
non-ferrous metals Industry.
BIO AGRO: Ind-Ra Cuts Term Loan Rating to D
-------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Bio Agro Energy
Pvt. Ltd.'s (BAEPL) term loan rating to 'IND D' from 'IND B+'. The
Outlook was Stable.
The instrument-wise rating action is:
-- INR1.70 bil. Term loan due on March 31, 2031 downgraded with
IND D rating.
Detailed Rationale of the Rating Action
The downgrade reflects a delay in debt servicing of the term loan
during December 2024. This is consistent with Ind-Ra's Default
Recognition and Post-Default Curing Period Policy.
Detailed Description of Key Rating Drivers
Delay in Debt Servicing: The downgrade reflects BAEPL's delay in
the payment of the interest on term loan by 10 days in December
2024, which was regularized on January 10, 2025. The delay was
caused by liquidity constraints. This is consistent with Ind-Ra's
Default Recognition and Post-Default Curing Period Policy.
Liquidity
Poor: BAEPL's liquidity position is poor, as reflected by the
inability to service debt obligation on a timely basis.
Rating Sensitivities
Negative: Not applicable
Positive: Timely debt servicing for at least three consecutive
months could result in a positive rating action.
About the Company
Incorporated in September 2021, BAEPL is operating a 66,000 kilo
liters per annum distillery to produce ethanol in Sonepur district,
Odisha. The registered office of the company is in Khordha, Odisha.
The company started operations in January 2025.
BULANDSHAHR ROLLER: CARE Keeps B- Debt Rating in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Bulandshahr
Roller Flour Mill Private Limited (BRFM) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated January 23,
2024, placed the rating(s) of BRFMPL under the 'issuer
non-cooperating' category as BRFMPL had failed to provide
information for monitoring of the rating as agreed to in its Rating
Agreement. BRFMPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails dated
December 8, 2024, December 18, 2024 and December 28, 2024 among
others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Stable
Bulandshahr Roller Flour Mill Private Limited (BRFMPL) was
incorporated on June 23, 1997 by Mr Dinesh Goel, Mr Mohit Goel and
Ms Neha Goel. BRFMPL is engaged in processing and trading of wheat,
maida, suji, wheat flour and cattle feed. The company commenced
commercial operations in June 1999. BRFM has its manufacturing
facility located at Bulandshahr. The main raw material is wheat.
BRFMPL procures raw material from nearby grain markets, commission
agents and also directly from farmers.
BULLAND BUILDTECH: CARE Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Bulland
Buildtech Private Limited (BBPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 45.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated March 15, 2024,
placed the rating(s) of BBPL under the 'issuer non-cooperating'
category as BBPL had failed to provide information for monitoring
of the rating as agreed to in its Rating Agreement. BBPL continues
to be non-cooperative despite repeated requests for submission of
information through e-mails dated January 29, 2025, February 8,
2025 and February 18, 2025 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
Delhi-based BBPL was incorporated by Mr Rajneesh Nagar, Mr Ramkesh
Basist and Mr Krishan Pal Singh. The company is engaged in real
estate development. Currently, BBPL is developing 'Bulland
Elevates' residential project with 10.95 lsf of saleable area. The
promoters of BBPL have other business interests such as dealership
of Lohia Machinery Limited (LML), dealership of TVS Motor Company;
which is being carried out through associate concerns, namely, M/s
Bulland Automobile and M/s Bulland Motors, and M/s Flash Express
Courier Services engaged in courier business.
CHAMUNDESWARI SUGARS: Ind-Ra Assigns BB+ Bank Loan Rating
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated Sri Chamundeswari
Sugars Limited's (SCSL) bank facilities as under:
-- INR1,644.3 bil. Term loan due on March 31, 2037 assigned with
IND BB+/Stable rating;
-- INR95 mil. Fund-based working capital limit assigned with IND
BB+/Stable/IND A4+ rating; and
-- INR2,260.7 bil. Proposed term loan assigned with IND
BB+/Stable rating.
Detailed Rationale of the Rating Action
The ratings reflect SCSL's weak credit metrics owing to its high
cost of borrowings, resulting in the entity's coverage being
consistently low at around 1.5x historically. The management has
taken active steps to mitigate these concerns, and has proposed the
re-financing of its a significant portion of its present high-cost
borrowings in FY26, with a new term loan at a lower cost, which
supports the rating. The ratings are constrained by SCSL's weak
current ratio, which has consistently been below 1x in the past few
years due to higher short-term debt despite inventory levels
typically being lower in the month of March.
The ratings are, however, supported by the entity's stable revenue
and operating profitability, with its EBITDA margins being higher
than industry peers. The management's extensive experience of more
than five decades in the sugar industry also supports the rating.
Detailed Description of Key Rating Drivers
Credit Metrics Impacted by High Interest costs on Existing Debt:
Despite stable operational performance in the past few years,
SCSL's credit metrics remain weak due to high borrowing costs. The
entity's interest coverage (operating EBITDA/gross interest
expense) weakened to 1.47x in FY24 (FY23: 1.54x) as its interest
expenses rose to INR741.03 million (INR722.5 million). The net
financial leverage (Ind-Ra adjusted net debt/operating EBITDAR)
remained at largely similar levels of 5.24x in FY24 (FY23: 5.29x),
with the overall debt level reducing to INR5,784.15 million
(INR5,979.83 million). Despite the net leverage being in line with
peers in the sugar industry, the company has weak interest coverage
due to its significantly high interest costs. The weighted average
interest cost on total debt was significantly high at 12.64% in
FY24 (FY23: 11.93%), with the cost of borrowings from financial
institutions exceeding 13%. Ind-Ra expects the credit metrics to
remain weak in the near-to-medium term if the high cost of existing
debt persists.
To mitigate the impact of high interest costs, the management has
proposed re-financing of significant portions of existing debt,
with a new term loan of INR4,000 million in FY26. The management
plans to replace the existing long-term debt of INR2,137.25 million
that was outstanding at FYE24, additional term loans of INR320
million drawn in FY25, and working capital facilities to the extent
of INR1,400 million under this arrangement. The management expects
to re-finance the existing loans with lower cost of borrowing on
the new term debt and is already in talks with lenders for the
re-financing transaction. If the re-financing arrangement is
completed successfully, it would lead to a decline in the overall
interest costs, which could result in the interest coverage
gradually improving above 2x in the medium term. The update on the
proposed re-financing arrangement will remain a key monitorable for
the agency.
Weak Current Ratio Historically; Likely to improve after
re-financing of Short-term debt: SCSL's current ratio, as per
Ind-Ra's calculations, improved but remained weak at 0.9x in FY24
(FY23: 0.7x; FY22: 0.5x), as the short-term debt remained high
despite inventory levels typically being lower in the month of
March. The short-term debt remained at largely similar levels of
INR1,572.59 million in FY24 (FY23: INR1,590.73 million) against
sugar and by-products inventory of INR382.15 million (INR360.76
million). Under the proposed re-financing arrangement, the
management plans to replace a significant portion of the short-term
debt with long-term loans to be used for working capital purposes
from FY25. Ind-Ra expects this arrangement to improve the current
ratio in the near-to-medium term.
Low Quota Allocation from Government could impact Medium-Term
Revenue: Despite a decline in production, SCSL's revenue increased
slightly to INR6,310.93 million in FY24 (FY23: INR6,220.27
million), led by the rise in sugar prices, as the average
realization improved to INR36,055 per metric ton (MT; INR33,329 per
MT). The sugar sales declined to 122,296MT in FY24 (FY23: 136,574
MT) due to a fall in production owing to a lower recovery at its
Mandya Unit compared to the previous years. SCSL has been receiving
significantly low quota allocations from the government for sugar
sales in the past few years, at less than 10% of the total
production. However, at present, the entity sells more than 95% of
its total sugar produced, backed by an order from the High Court of
Karnataka that allows it to sell as much sugar exceeding the
allocated quota as is required for making cane payments to the
farmers. Given the higher sales under this order, the entity's
inventory levels have been significantly lower than its peers in
the sugar business.
However, the consistently low levels of quota allocated for sales
to the entity by the government poses risks to SCSL's medium-term
revenue visibility if the High Court order is not in the company's
favor in the upcoming seasons. Nevertheless, given the historical
trend, the agency considers this to be an unlikely event.
Regulatory Risks inherent to Sugar industry: The sugar industry is
regulated and vulnerable to government policies as it is classified
as an essential commodity. Besides setting quotas for the domestic
sale of sugar and restricting sugar exports, the government has
implemented various regulations such as fixing the raw material
prices in the form of FRP for sugarcane as well as implementing
restrictions on the diversion of sugar syrup and B-heavy molasses
in the previous season (2023-24), although the restrictions are now
lifted. All these factors impact the production and sales of sugar
and ethanol/ extra neutral alcohol (ENA), posing significant risks
to SCSL's scale of operations.
EBITDA Margins Higher Than Industry Peers Due to Lower Cane Costs:
SCSL's EBITDA margin declined slightly to 17.28% in FY24 (FY23:
17.88%) as the rise in sugar prices was offset by the increase in
operating overheads. The EBITDA declined slightly to INR1,090.73
million in FY24 (FY23: INR1,112.44 million). Nevertheless, the
entity's margins remained better than peers in the sugar industry
in North Karnataka, Maharashtra, and Uttar Pradesh. The sugar
entities in the southern part of India benefit from lower cane
costs due to the applicability of lower fair remunerative prices
(FRP) of cane, which is directly linked to the recovery rate of
sugar from sugarcane. As the recovery rates in the southern region
are lower than the basic recovery of 10.25%, sugar mills in these
geographies have to pay a lower FRP than the fixed FRP of INR3,400
per MT of cane (for the ongoing 2024-25 sugar season). At a
recovery rate of lower than 9.5% historically, the entity has to
pay a lower FRP of INR3,150 per MT of cane to the farmers, while
the output prices of sugar are not impacted, thereby resulting in
higher gross margins. The entity's return on capital employed
(ROCE) remained stable at 9.7% in FY24. The agency expects the
EBITDA margins and the ROCE to remain at similar levels in the
near-to-medium term, provided the scale of operations is
sustained.
Synergies from Fully integrated Nature of Operations; Extensive
Experience in Sugar industry: SCSL benefits from the synergies of
the integrated nature of its operations. The C-heavy molasses used
as raw material by the distillery unit is produced in-house by the
sugar mill as a by-product during sugar production. Furthermore,
the bagasse required for steam generation in the co-generation plan
is also produced in-house as a byproduct during the crushing of
sugarcane. This enables the entity to maximize its profitability in
the co-generation and distillery segments. The entity also sells
bio-compost that is made out of pressmud and spentwash, which are
by-products in the manufacturing process of sugar and ENA,
respectively; the bio-compost contributes around INR400 million to
the revenue every year.
Furthermore, SCSL has been engaged in sugar production since 1972
through its Mandya Unit and has extensive experience of more than
five decades in the sugar industry, with the management experienced
in steering through various cyclical and regulatory changes in the
industry.
Liquidity
Stretched: SCSL had unencumbered cash and cash equivalents of
INR63.52 million at FYE24 (FYE23: INR91.89 million). The average
maximum utilization of its fund-based working capital limits for
the 12 months ended February 2025 was 83.74%. The sugar
manufacturing industry is inherently working capital-intensive in
nature; however, as the entity has been selling most of its sugar
production backed by the High Court's order, it has a significantly
shorter net working capital cycle than its peers in the industry at
83 days in FY24 (FY23: 75 days; FY22: negative two days). SCSL's
cash flow from operations had turned negative in FY23 because of a
sharp deterioration in the working capital cycle. While the working
capital cycle stretched further in FY24, the elongation was very
slight compared to the deterioration in FY23. Consequently, the
cash flow from operations turned positive at INR111.03 million in
FY24 (FY23: negative INR390.03 million; FY22: INR67 million). The
entity has repayment obligations of INR645.9 million and INR565.62
million, respectively, in FY25 and FY26 as per its existing
repayment schedule; however, this is subject to the re-financing
arrangement proposed by the management.
Rating Sensitivities
Negative: Any deterioration in the scale of operations, failure to
complete the re-financing arrangement, leading to the interest
coverage remaining below 1.5x, the current ratio remaining below
1.0x, or significant deterioration in the liquidity, all on a
sustained basis, will be negative for the ratings.
Positive: Maintaining the scale of operations, successful
completion of the re-financing arrangement, leading to the interest
coverage exceeding 2.25x, a significant improvement in the current
ratio, and improvement in the liquidity, all on a sustained basis,
will be positive for the ratings.
About the Company
SCSL produces sugar and related by products from sugar processing,
power, and extra neutral alcohol. The company has two units located
in Mandya, Karnataka, and Hassan, Karnataka with a combined with a
crushing capacity of 8,500TCD, 47MW for cogeneration, and a
distillery with molasses-based ENA capacity of 50 kiloliters per
day.
FATEHABAD BIO: CARE Lowers Rating on INR54.75cr LT Loan to B+
-------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Fatehabad Bio Energy LLP (FBEL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 54.75 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING and Downgraded from
CARE BB-; Stable
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated February 5,
2024, placed the rating(s) of FBEL under the 'issuer
non-cooperating' category as FBEL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
FBEL continues to be non-cooperative despite repeated requests for
submission of information through emails dated December 21, 2024,
December 31, 2024, January 10, 2025 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The rating assigned to the bank facilities of FBEL have been
revised on account of non-availability of requisite information.
Analytical approach: Standalone
Outlook: Stable
Fatehabad Bio Energy LLP (FBEL) is promoted by Mr. Srinivas
Sanapala. Mr. Srinivas Sanapala has worked in past with McKinsey
and Ernst & Young (E&Y) in Mergers and Acquisitions, Project, and
General management divisions. Sanapala family prior to entering the
renewable energy space was engaged in trading of wood to paper
industry. The group is also known as Jyoti Group. FBEL is in
process setting up biomass fired power plant with capacity of 9.9
MW at Fatehabad district in Haryana. It is understood that company
has achieved COD on December 11, 2022.
GCRG MEMORIAL: Ind-Ra Keeps D Loan Rating in NonCooperating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained GCRG Memorial
Trust's instrument(s) rating in the non-cooperating category. The
issuer did not participate in the surveillance 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 the rating. The rating will
continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.
The detailed rating actions are:
-- INR19.5 mil. Fund Based Working Capital Limit maintained in
non-cooperating category with IND D (ISSUER NOT COOPERATING)
rating;
-- INR115 mil. Non-Fund Based Working Capital Limit maintained in
non-cooperating category with IND D (ISSUER NOT COOPERATING)
rating; and
-- INR105.8 mil. Term loan due on March 31, 2020 maintained in
non-cooperating category with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Detailed Rationale of the Rating Action
The ratings are maintained in the non-cooperating category in
accordance with Ind-Ra's policy of Issuer Non-Cooperation.
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with GCRG Memorial Trust while
reviewing the rating. Ind-Ra had consistently followed up with GCRG
Memorial Trust over emails, apart from phone calls.
Limitations regarding Information Availability
Ind-Ra has reviewed the credit ratings of GCRG Memorial Trust on
the basis of best available information and is unable to provide a
forward-looking credit view. Hence, the current outstanding rating
might not reflect GCRG Memorial Trust'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.
About the Company
GCRG Memorial Trust was founded by Chairman Abhishek Yadav and
Mohit Yadav (secretary) in May 2008 and is incorporated under the
Indian Trust Act, 1882.
HIGHWAY ENGINEERING: ICRA Cuts Rating on INR10cr LT Loan to B+
--------------------------------------------------------------
ICRA has downgraded and moved the ratings for the bank facilities
of Highway Engineering Consultants (HEC) to the Issuer Not
Cooperating category. The ratings are denoted as [ICRA]B+(Stable)
ISSUER NOT COOPERATING/[ICRA]A4 ISSUER NOT COOPERATING.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 10.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; downgraded from
Cash Credit from [ICRA]BB+ (Stable) and
moved to 'ISSUER NOT
COOPERATING' category
Short-term- 55.00 [ICRA]A4 ISSUER NOT
Non-fund based COOPERATING; downgraded from
[ICRA]A4+ and moved to
'ISSUER NOT COOPERATING'
category
Long-term/ 15.00 [ICRA]B+(Stable) ISSUER NOT
Short-term- COOPERATING/[ICRA]A4 ISSUER NOT
Unallocated COOPERATING; downgraded from
[ICRA]BB+ (Stable)/[ICRA]A4+
and moved to 'ISSUER NOT
COOPERATING' category
As a part of its process and in accordance with its rating
agreement with HEC, ICRA has been trying to seek information from
the entity to monitor its performance, however, despite repeated
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, a rating view has been
taken on the entity based on the best available information.
LNM was established in 2000 in Bhopal as a proprietorship firm by
Mr. Laxmi Narayan Malviya. It was later incorporated as a private
limited company in 2010. HEC was established in 2007 by Mr. Satya
Narayan Malviya (elder brother of Mr. L. N. Malviya) and Ms. Tapsya
Malviya as partners. Both the entities are in similar line of
business of providing engineering consultancy services focused
towards the infrastructure sector including segments such as
highways, roads and water supply, among others. Its key service
offerings are supervision, quality control and detailed project
reports. The company's projects are
distributed across the country, with its primary focus on Madhya
Pradesh.
INDIAN CANE: Ind-Ra Cuts Term Loan Rating to BB+, Outlook Stable
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Indian Cane
Power Limited's (ICPL) long-term debt to 'IND BB+' from 'IND BBB-'
with a Stable Outlook and the short-term debt to 'IND A4+' from
'IND A3', as follows:
-- INR850 mil. Fund-based working capital limits downgraded with
IND BB+/Stable rating;
-- INR125 mil. Non-fund-based working capital limits downgraded
with IND A4+ rating;
-- INR4.625 bil. Term loan due on March 31, 2033 downgraded with
IND BB+/Stable rating;
-- INR1.0 bil. Proposed non-fund-based working capital limits
downgraded with IND A4+ rating; and
-- INR900 mil. Proposed fund-based working capital limits
downgraded with IND BB+/Stable/IND A4+ rating.
Analytical Approach
Ind-Ra has changed its rating approach to taking a standalone view
of ICPL from a consolidated view of ICPL as its two wholly owned
subsidiaries Alagwadi Bireshwar Sugar Pvt Ltd and Someshwar Sugars
Ltd, as they have been merged with ICPL effective June 29, 2022 and
cease to exist as a legal entity.
Detailed Rationale of the Rating Action
The downgrade reflects deterioration of ICPL's credit metrics in
FY24, which is likely to continue in FY25 due to increased debt
levels to fund working capital requirements.
Detailed Description of Key Rating Drivers
Increase in Sugar Production Capacity in FY25, Leading to Higher
Inventory and Working Capital Requirements: In FY25, ICPL expanded
its sugar production capacity to 39,500TCD from 28,500TCD in FY24
(FY23: 24,000TCD), resulting in an expected 50%-55% increase in
sugar production volumes. However, the sugar sales quota, including
export allocations, is to remain low in FY25, leading to a
threefold increase in sugar inventory levels compared to FY24's
0.08 million MT. The company has a distillery capacity of 180KLPD.
It plans to commence operations at its new distillery of capacity
300KLPD in FY26, diverting 4,000 tons of cane per day (10% of
current capacity) for ethanol production. This is likely to reduce
sugar production while improving ethanol output. However, due to
the lower sugar quota than the total production, the inventory
levels may keep increasing. Elevated inventory levels lead to
higher working capital requirements, necessitating additional debt,
which can be secured through sugar inventory pledging.
Deterioration in Credit Metrics in FY24, Likely to Continue in
FY25: The gross interest coverage (operating EBITDA/gross interest
expenses) decreased to 9.82x in FY24 (FY23: 10.86x) due to a
decrease in the absolute EBITDA to INR1,078.81 million (INR1,356.81
million). Moreover, the net financial leverage (total adjusted net
debt/operating EBITDAR) increased to 6.40x in FY24 (FY23: 3.47x) on
account of an increase in term debt to fund the capex and an
increase in fund-based facilities, cash credit and pledge loans due
to the increase in capacity. Ind-Ra expects the credit metrics to
deteriorate in FY25 as well, due to the increase in term loans for
completing the distillery project of 300KLPD and increased
inventory levels leading to higher working capital requirements,
which will also increase interest expenses. In the near-to-medium,
Ind-Ra expects the credit metrics to improve with the commencement
of operations at the new distillery unit in FY26, driven by
increased ethanol production and revenue diversification. However,
they are likely to remain weaker than the FY24 levels due to
additional working capital debt.
Rising Cane Costs to Impact FY25 Profitability: For the sugar
season 2024-25 (SS 2024-25), the government has increased the
sugarcane fair remunerative prices (FRP) to INR3,400 per metric
tons (MT), for a basic recovery rate of 10.25% before the premium
for incremental recovery, from INR3,150 per MT. This has
significantly increased the cane procurement costs for the current
sugar season. At the current sugar realization of INR38,000 per MT
(ex-mill), the rise in cane FRP will lead to significant shrinking
of the company's gross margin on sugar sales, thereby impacting its
profitability in FY25. Any volatility in the market prices of sugar
is likely to lead to losses in the sugar segment in the medium
term, which will have to be absorbed by increased sales of ethanol
and other products. In FY24, the EBITDA margins decreased to 8.74%
(FY23: 10.04%) due to an increase in the cost of cane and
manufacturing expenses by 0.70% and employee costs by 0.70%, owing
to the capacity increase in FY24. Ind-Ra expects the EBITDA margins
to improve in the near to medium term due to increased sales from
the distillery segment.
Free Cash Flow Likely to Remain Negative due to Expected Rise in
Inventory Levels: ICPL's free cash flow remained negative at
INR970.98 million in FY24 (FY23: negative INR1,398.27 million;
FY22: negative INR92.92 million) due to the increased capex in FY23
and FY24. Ind-Ra expects the free cash flow to remain negative in
FY25 and beyond, owing to the likely further rise in inventory
levels.
Regulatory Risks Inherent to Sugar Industry: The sugar industry is
regulated and vulnerable to government policies, as it is
classified as an essential commodity. Besides setting quotas for
the domestic sale of sugar and restricting sugar exports, the
government has implemented various regulations such as fixing raw
material prices in the form of FRP for sugarcane as well as
implementing restrictions on the diversion of sugar syrup and
B-heavy molasses in the previous season (2023-24), although the
restrictions have now been lifted. All these factors can impact the
production and sales of sugar and ethanol/extra neutral alcohol,
posing significant risks to ICPL's scale of operations.
Improvement in Scale of Operations in Near to Medium Term: In FY25,
ICPL has successfully enhanced its sugar production capacity to
39,500TCD (FY24: 28,500TCD, FY22: 24,000TCD), co-generation
capacity to 129MW (97MW, 83MW) and distillery capacity to 480KLPD
(180KLPD, 180KLPD). While operations in the sugar and cogen
segments commenced in SS24-25, operations. ICPL expects to commence
operations at its new 300KLPD distillery in FY26. In FY24, the
revenue declined to INR12,344.24 million (FY23: INR13,518.57
million) due to the lower sugar sales quota and reduction in the
number of ethanol tenders allocated. However, Ind-Ra expects the
revenue to improve in FY25, supported by sugar exports, and further
in the near-to-medium term, driven by the commencement of
operations in distillery from FY26, which will enhance revenue
diversification.
Synergies from Integrated Nature of Operations: ICPL benefits from
the synergies derived from the integrated nature of its operations.
The B-heavy and C-heavy molasses used as raw materials by the
distillery unit are produced in-house by the sugar mill as a
byproduct during sugar production. Furthermore, the bagasse
required for steam generation in the co-generation plant is
produced in-house as a byproduct during the crushing of sugarcane.
This enables the entity to maximize its profitability in the
cogeneration and distillery segments.
20 Years of Experience in Sugar Industry: ICPL has an operational
track record of more than two decades in the sugar industry with
established relationships with farmers in the region.
Liquidity
Stretched: ICPL's current ratio (current assets/current
liabilities) deteriorated to 0.83x in FY24 (FY23: 0.99x),
indicating the use of short-term funds for long-term purposes. The
company's average monthly utilization of the fund-based working
capital limits was 71.41% for 12 months ended January 2025. The
cash and cash equivalents fell to INR233.27 million at FYE24
(FYE23: INR754.73 million) and the cash flows from operations
decreased to INR1,876.31 million (INR1,953.23 million). The company
incurred capex of INR2,847.29 million in FY24 (FY23: INR3,351.50
million) causing the free cash flow to remain negative INR970.98
million (negative INR1,398.27 million). The working capital cycle
increased to 45 days in FY24 (FY23: 22 days) owing to a
significant increase in the inventory days to 160 days (98 days).
The payable period increased to 167 days in FY24 (FY23: 116 days)
and receivable period increased to 53 days (40 days) due to delays
in the receipt of payments from Karnataka government. It has
scheduled debt repayments of INR384.95 million in FY25 and
INR458.64 million in FY26. Ind-Ra expects the liquidity to remain
stretched in near-to-medium term on account of the increase in
inventory levels, leading to higher working capital requirements.
Rating Sensitivities
Negative: Substantial deterioration in the liquidity position or
current ratio, or the net leverage exceeding 5.50x would be
negative for the ratings.
Positive: A substantial improvement in the liquidity position and
current ratio, along with the net leverage remaining below 4.50x
would be positive for the ratings.
About the Company
Incorporated in 2002, ICPL operates with a crushing capacity of
39,500 tons of cane per day and a co-generation facility of 129MW,
located across Uttur, Belagavi and Bijapur in Karnataka. The
company also operates a 180KLPD distillery unit at Bellary,
Karnataka. The promoters of the company are Dr. S.
Shivashankarappa, S.S Mallikarjun and Prabha Mallikarjun.
JUBILEE HILLS: Ind-Ra Keeps D Loan Rating in NonCooperating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained The Jubilee
Hills Cooperative House Building Society Ltd.'s instrument(s)
rating in the non-cooperating category. The issuer did not
participate in the surveillance 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 the rating. The rating will
continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.
The detailed rating action is:
-- INR175 mil. Term loan due on March 31, 2028 maintained in non-
cooperating category with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Detailed Rationale of the Rating Action
The ratings are maintained in the non-cooperating category in
accordance with Ind-Ra's policy of Issuer Non-Cooperation.
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with The Jubilee Hills Co-
operative House Building Society Ltd. while reviewing the rating.
Ind-Ra had consistently followed up with The Jubilee Hills Co-
operative House Building Society Ltd. over emails, apart from phone
calls.
Limitations regarding Information Availability
Ind-Ra has reviewed the credit ratings of The Jubilee Hills Co-
operative House Building Society Ltd. on the basis of best
available information and is unable to provide a forward-looking
credit view. Hence, the current outstanding rating might not
reflect The Jubilee Hills Co- operative House Building Society
Ltd.'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.
About the Company
Jubilee Hills was registered on July 7, 1962 as a co-operative
society under the Andhra Pradesh State Co-operative Societies Act,
with Registration No. T.A.173. Its main objectives are to carry on
functions for the benefit of its members, and buying and developing
land in accordance with co-operative principles as per the Andhra
Pradesh State Co-operative Societies Act. Jubilee Hills has total
member base of 4,986 divided amongst residential, commercial
members and non-land/property holders.
KAKINADA SEZ: Ind-Ra Cuts Loan Rating to BB+, Outlook Negative
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Kakinada SEZ
Limited's (KSEZ) term loan rating to 'IND BB+' from 'IND BBB-' with
a Negative Outlook, as follows:
-- INR5.050 bil. (reduced from INR8,378.4 bil.) Term loans due on
March 31, 2032 downgraded with IND BB+/Negative rating.
Analytical Approach
Ind-Ra continues to factor in KSEZ's strong strategic and legal
linkages with its parent, Auro Infra Private Limited (AIPL), and
its ultimate parent, RPR Enterprises (RPR), a partnership firm
which holds around 82.26% stake in AIPL through a trustee (RPR Sons
Advisors Pvt Ltd) and Penaka Suneela Rani, the ultimate beneficiary
of RPR. RPR has extended support to AIPL to fund KSEZ's acquisition
and debt repayments. Ind-Ra believes RPR would continue to provide
support, if needed, to complete the capex plan envisaged and to
meet the repayment obligations in KSEZ.
Detailed Rationale of the Rating Action
The downgrade reflects the slow pick-up in asset monetization
during FY24 and 9MFY25 despite the granting of environment
clearance (EC) and approval from the Andhra Pradesh Pollution
Control Board in December 2023, thereby impacting KSEZ's
medium-term credit performance. The Negative Outlook reflects the
lack of investor interest due to lower incentives and the recent
investigation launched in connection with the acquisition of stakes
in Kakinada Sea Ports Limited (KSPL) and Kakinada Special Economic
Zone by RPR in FY21; timely resolution of the same will remain a
key monitorable.
Detailed Description of Key Rating Drivers
Project Cash Flows Yet to Pick Up: KSEZ's sales remained muted in
FY24 and 9MFY25; as of December 2024, it had sold only 440 acres
out of the total of around 5,682 acres. It sold 423 acres of land
to Aurobindo Pharma Ltd (APL, IND AA+/Stable) for INR2,748 million
in FY22 and 17 acres to three marine-based companies in FY23 for a
total of INR127.5 million. The sales have been substantially lower
than the management's anticipation due to delays in obtaining
environment clearance, lack of investor interest on lower
incentives, and the recent investigation launched in connection
with the acquisition of stakes in KSPL and Kakinada Special
Economic Zone from the original promoters by RPR . However, as per
management, RPR had complied with all the regulatory and statutory
requirements for the acquisition, and regarding the nature of the
complaint, no criminal allegation has been made and it has not
received any formal written notice of the complaint.
Apart from the land sale, KSEZ carried out contract works such as
land levelling and soil filling to the tune of INR1,118.8 million
in FY23 and INR325 million in FY24.
All Major Project Clearances Obtained: KSEZ's proposal for
environment and Coastal Regulation Zone clearance has been approved
by the Expert Appraisal Committee set up by the Ministry of
Environment, Forest and Climate Change, EC and the Andhra Pradesh
Pollution Control Board. The committee issued its minutes on
November 26, 2023 and granted the final clearance in December
2023.
KSEZ has been engaged in advanced discussions with ethanol
manufacturers and pharma players for the sale of 300 acres of land.
However, the company had not signed any definitive agreements as of
February 2025. Ind-Ra will continue to monitor the land sales.
Muted cash flow generation could impact the debt serviceability and
would be negative for the ratings. Ind-Ra expects land sales to
advance once legal issues are resolved and sufficient progress is
made on port development.
Strong Legal Linkages Backed by Tangible Support from RPR: RPR
offers tangible support KSEZ, leading to financial flexibility.
KSEZ is strategically important to the promoters, as reflected by
the quantum of the investment and legal support offered at the time
of acquisition of KSEZ, along with the extension of corporate
guarantees from AIPL and RPR, and personal guarantees by P Suneela
Rani, P Sarath Chandra Reddy and P Rohit Reddy (ultimate
beneficiary of RPR) for the bank loans availed by KSEZ. The support
continued in FY24 and FY25 as well, with AIPL infusing INR1.5
billion in in KSEZ during 9MFY25 (FY24: INR1.63 billion; FY23:
INR1.71 billion) for meeting the latter's debt servicing
obligations. Furthermore, the promoters have provided an
undertaking to KSEZ's lenders to fund any shortfall in meeting the
payment of secured obligations, replenish the debt service reserve
account (DSRA) in case of a shortfall and meet any shortfall in the
sale or lease proceeds for meeting secured obligations and
development cost of the project.
Of the total debt of INR6,899 million that was outstanding as of
March 2024, the company prepaid debt of INR1,060 million in 1QFY25
through the parent's support. As per KSEZ, the parent will provide
support in case there is any shortfall in meeting the debt
obligations. This demonstrates the strength of the legal and
strategic linkages between the companies. Furthermore, RPR holds
39.7% stake in APL. On consolidated basis (factoring in RPR's
investments in multiple pharma and infra businesses), RPR
continues to rely on loans against shares (LAS) for funding its
project commitments. At a consolidated level, RPR's outstanding
LAS-backed debt amounted to INR17.46 billion at end-January 2025
(FY24: INR19.18 billion), taking its pledged holding to 20%, and
resulting in a cover of 3.2x versus the required cover of around
2x. The company's dependence on LAS remains a key monitorable for
the agency.
Liquidity
Adequate; Supported by Ultimate Parent: KSEZ's unencumbered cash
and bank balances stood at INR61 million at end-December 2025
(FY24: INR1,176 million). It has created a debt service reserve of
around INR885 million (FY24: INR994 million). KSEZ has principal
annual repayments of INR1,062 million for FY25 and INR1,062.5
million in FY26. The company is also required to make mandatory
prepayments of 20% of the sale/lease proceeds. The land sale
proceeds are yet to be realized, and the company has yet to
conclude all sale transactions completely. Therefore, these are key
monitorables for the agency.
The company also prepaid partial debt of INR1,060 in 1QFY25 through
the parent's support, which will be adjusted from the last
instalment. The debt service coverage ratio of the company remained
less than 1x during FY23-FY24. However, AIPL has provided support
to KSEZ in the past to meet the latter's debt servicing obligations
in a timely manner and for stepping up of DSRA. Ind-Ra expects the
parent to continue to provide timely support to KSEZ. Ind-Ra also
draws comfort from the support undertaking by RPR to fund any
shortfall in the development cost of the project, along with the
undertaking to fund any shortfall in the sales proceeds for
servicing the debt over the tenure of the loan, which is 10 years,
with two years of moratorium. Hence, the liquidity at RPR group
level will continue to be a key monitorable.
Rating Sensitivities
Revision in Outlook to Stable: Higher-than-projected land
monetization, leading to debt service coverage ratio above 1.1x and
an improvement in liquidity profile on a sustained basis could lead
to a Stable Outlook.
Negative: Lower-than-projected land monetization, leading to
deterioration in the project's debt service coverage ratio below
1.1x; or a weakening of the support from/linkages with the
sponsors, leading to sustained deterioration of the liquidity
profile; and/or tapping of the DSRA to meet any shortfall, could
lead to a negative rating action.
Any Other Information
Change in Capex Plans: KSEZ had previously planned to develop
certain premium infrastructure such as roads, power stations, water
supply systems, steam generators, common effluent treatment plants,
waste water discharge systems, among others, which would benefit
its occupants to operate with a common major infrastructure rather
than incurring the infrastructure cost separately. KSEZ was to
start the projected capex of around INR7,850 million in FY23;
however, the plans were changed subsequently, KSEZ now intends to
only undertake land levelling and road connectivity projects, which
will cost INR3,000 million-3,500 million. The capex would be funded
through bank debt and internal accruals/subordinated unsecured
loan/equity by availing support from the ultimate promoter.
About the Company
KSEZ, located at Kakinada, is planning to develop an industrial
park on an area of 5,600 acres, which would comprise various
industries such as petrochemical complex, pharma complex majorly
active pharmaceutical ingredients, food and agro processing park,
and other port-based industries. The company also plans to
construct a port on another 1,500 acres later. The entity was
earlier held by GMR SEZ & Port Holdings Limited (51%) and KVR group
(48.74%). ARIPL acquired 99.74% stake in KSEZ in FY21 and would be
the engineering, procurement and construction contractor for the
said project.
KAMINENI EDUCATIONAL: Ind-Ra Cuts Term Loan Rating to BB-
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Kamineni
Educational Society rating to 'IND BB-/Negative (ISSUER NOT
COOPERATING)'. The issuer did not participate in the surveillance
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:
-- INR50 mil. Fund Based Working Capital Limit downgraded with
IND BB-/Negative (ISSUER NOT COOPERATING) rating;
-- INR200 mil. Non-Fund Based Working Capital Limit downgraded
with IND BB-/Negative (ISSUER NOT COOPERATING) rating; and
-- INR650 mil. Term loan due on September 30, 2023 Downgraded
with IND BB-/Negative (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Detailed Rationale of the Rating Action
The downgrade is in accordance with Ind-Ra's policy of Guidelines
on What Constitutes Non-Cooperation. As per the policy, ratings of
non-cooperative ratings issuers may get downgraded during
subsequent reviews, if the issuer continues to remain
non-cooperative. With passage of time and absence of updated
information, the risk of sustaining the rating at current levels by
relying on dated information increases, which may be reflected
through a downgrade rating action
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with Kamineni Educational Society
while reviewing the rating. Ind-Ra had consistently followed up
with Kamineni Educational Society over emails, apart from phone
calls.
Limitations regarding Information Availability
Ind-Ra has reviewed the credit ratings of Kamineni Educational
Society on the basis of best available information and is unable to
provide a forward-looking credit view. Hence, the current
outstanding rating might not reflect Kamineni Educational Society'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.
About the Company
Formed in 1989, Kamineni Educational Society is registered under
the Andhra Pradesh (Telangana) Public Societies Registration Act,
1350 Fasli. It runs nursing schools and colleges.
KRISHNA EDUCATIONAL: Ind-Ra Keeps D Loan Rating in NonCooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Shree Krishna
Educational & Charitable Society's instrument(s) rating in the
non-cooperating category. The issuer did not participate in the
surveillance 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
the rating. The rating will continue to appear as 'IND D (ISSUER
NOT COOPERATING)' on the agency's website.
The detailed rating actions are:
-- INR10 mil. Fund/Non-Fund Based Working Capital Limit
maintained in non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating; and
-- INR66 mil. Term loan due on January 31, 2019 maintained in
non-cooperating category with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Detailed Rationale of the Rating Action
The ratings are maintained in the non-cooperating category in
accordance with Ind-Ra's policy of Issuer Non-Cooperation.
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with Shree Krishna Educational &
Charitable Society while reviewing the rating. Ind-Ra had
consistently followed up with Shree Krishna Educational &
Charitable Society over emails, apart from phone calls.
Limitations regarding Information Availability
Ind-Ra has reviewed the credit ratings of Shree Krishna Educational
& Charitable Society on the basis of best available information and
is unable to provide a forward-looking credit view. Hence, the
current outstanding rating might not reflect Shree Krishna
Educational & Charitable Society'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.
About the Company
Shree Krishna Educational & Charitable Society was established in
2008 under the Societies Registration Act, 1860. The society
operates two institutes in Barnala, Punjab, namely Aryabhatta Group
of Institutes and Aryabhatta College.
KUMAR SINEW: Ind-Ra Moves D Loan Rating to Non-Cooperating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) migrates the ratings of Kumar
Sinew Developers Private Limited's NCDs to issuer 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 ratings are based on the best
available information. Therefore, investors and other users are
advised to take appropriate caution while using these ratings.
The detailed rating action is:
-- INR1.794 bil. Non-convertible debenture* (Long-term) migrated
to non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not co-operate; based on
best available information
* Details in Annexure
Detailed Rationale of the Rating Action
The migration of rating to the non-cooperating category is in
accordance with Ind-Ra's policy, Guidelines on what Constitutes
Non-Cooperation.
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interactions with KSDPL while reviewing the
ratings. Ind-Ra had consistently followed up with KSDPL over
emails, apart from phone calls. The issuer has submitted no default
statement until February 2025.
Limitations regarding Information Availability
Ind-Ra is unable to provide an updated forward-looking view on the
credit rating of KSDPL, 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
KSDPL is a real estate development special purpose entity with a
focus on residential, retail and commercial development in Pune and
Mumbai.
L.N. MALVIYA: ICRA Lowers Rating on INR55cr LT Loan to B+
---------------------------------------------------------
ICRA has downgraded and moved the ratings for the bank facilities
of L.N. Malviya Infra Projects Pvt. Ltd. (LNM) to the Issuer Not
Cooperating category. The ratings are denoted as [ICRA]B+(Stable)
ISSUER NOT COOPERATING/[ICRA]A4 ISSUER NOT COOPERATING.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 55.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; downgraded from
Cash Credit from [ICRA]BB+ (Stable) and
moved to 'ISSUER NOT
COOPERATING' category
Short-term- 205.00 [ICRA]A4 ISSUER NOT
Non-fund based COOPERATING; downgraded from
[ICRA]A4+ and moved to
'ISSUER NOT COOPERATING'
category
Long-term/ 75.00 [ICRA]B+(Stable) ISSUER NOT
Short-term- COOPERATING/[ICRA]A4 ISSUER NOT
Unallocated COOPERATING; downgraded from
[ICRA]BB+ (Stable)/[ICRA]A4+
and moved to 'ISSUER NOT
COOPERATING' category
As a part of its process and in accordance with its rating
agreement with LNM, ICRA has been trying to seek information from
the entity to monitor its performance. However, despite repeated
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, a rating view has been
taken on the entity based on the best available information.
LNM was established in 2000 in Bhopal as a proprietorship firm by
Mr. Laxmi Narayan Malviya. It was later incorporated as a private
limited company in 2010. HEC was established in 2007 by Mr. Satya
Narayan Malviya (elder brother of Mr. L. N. Malviya) and Ms. Tapsya
Malviya as partners. Both the entities are in similar line of
business of providing engineering consultancy services focused
towards the infrastructure sector, including segments such as
highways, roads and water supply, among others. Its key service
offerings are supervision, quality control and detailed project
reports. The company's projects are
distributed across the country, with primary focus on Madhya
Pradesh.
LODZ DENIM: Ind-Ra Moves BB+ Loan Rating to Non-Cooperating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Lodz Denim Pvt
Ltd.'s (LDPL) bank facilities 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
emails and phone calls. Thus, the ratings are based on the best
available information. Therefore, investors and other users are
advised to take appropriate caution while using these ratings. The
rating will now appear as 'IND BB+/Negative (ISSUER NOT
COOPERATING)'.
The detailed rating actions are:
-- INR400 mil. Fund-based working capital limit migrated to non-
cooperating category with IND BB+/Negative (ISSUER NOT
COOPERATING) rating;
-- INR75 mil. Non-fund-based working capital limit migrated to
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating;
-- INR695.19 mil. Term loan due on October 31, 2028 migrated to
non-cooperating category with IND BB+/Negative(ISSUER NOT
COOPERATING) rating; and
-- INR9.81 mil. Proposed non-fund-based working capital limit
migrated to non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating.
Note: Issuer did not cooperate; based on best available
information
Detailed Rationale of the Rating Action
The ratings have been migrated to the non-cooperating category in
accordance with Ind-Ra's policy of Guidelines on What Constitutes
Non-Cooperation.
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with LDPL while reviewing the
ratings. Ind-Ra had consistently followed up with LDPL over emails
starting December 3, 2024, apart from phone calls. Although, the
issuer has been submitting their monthly no default statement.
Limitations regarding Information Availability
Ind-Ra has reviewed the credit ratings of LDPL on the basis of best
available information and is unable to provide a forward-looking
credit view. 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
LDPL, which was incorporated in December 2011, manufactures denim
fabric in Surat, Gujarat, with 75% domestic sales and 25% exports.
Bangladesh is its biggest export customer. The unit has an
installed capacity of 23 million meters.
MANGE RAM: CARE Lowers Rating on INR15cr LT Loan to B
-----------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Mange Ram Enterprises Private Limited (MREPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING and Downgraded from
CARE B+; Stable
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated February 21,
2024, placed the rating(s) of MREPL under the 'issuer
non-cooperating' category as MREPL had failed to provide
information for monitoring of the rating as agreed to in its Rating
Agreement. MREPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails dated
January 6, 2025, January 16, 2025 and January 26, 2025 among
others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings have been revised on account of non-availability of
requisite information.
Analytical approach: Standalone
Outlook: Stable
Delhi based Mange Ram Enterprises Private Limited (MREPL) (CIN No.
U51909DL2007PTC167336) was incorporated in August, 2007 and started
its commercial operations from August, 2008. The company is
currently managed by Mr. Pushpinder Rawat & Mrs. Renuka Rawat.
MREPL is an authorized distributor of Hyundai Motor India Limited
(HMIL) vehicles. The company operates through its 3S (Sales, Spares
and Services) facility and is engaged in the sale of passenger
cars, servicing of vehicles and sale of its spare parts. The
company has three showrooms located in Ghaziabad, Vaishali &
Baraut. The company has two associate concerns namely; "M.R.
Preview" and "M.R. Homes" engaged in real estate business.
MANIYARPUR DAIRY: CARE Lowers Rating on INR28cr LT Loan to D
------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Maniyarpur Dairy Private Limited (MDPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term 28.00 CARE D; ISSUER NOT COOPERATING;
bank facilities Downgraded from CARE B+; Stable
and moved to ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. has been seeking information from MDPL to monitor
the ratings vide email communications dated February 4, 2025 and
March 4, 2025, and numerous phone calls. However, despite repeated
requests, the company has not provided the requisite information
for monitoring the ratings.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating. Further, MDPL has not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. The ratings on MDPL's bank facilities will now be
denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The rating assigned to the bank facilities of MDPL takes into
account the delay in debt servicing of its financial obligations
due to insufficient funds as confirmed by its banker.
Analytical approach: Standalone
Outlook: Not Applicable
Detailed description of key rating drivers:
Key weaknesses
* Delay in debt servicing: There have been several instances of
delays in debt servicing of its financial obligations due to
insufficient fund as confirmed by the lender.
Maniyarpur Dairy Private Limited (MDPL) company is based out of
Maniyarpur, Vaishali, Bihar. Established as a private limited
company for setting up a liquid milk processing plant. The entity
has entered into a tripartite agreement dated December 7, 2020,
with Kaira District Milk Producers Co-operative Union Limited
(KDMPCUL) and Gujarat Co-operative Milk Marketing Federation
Limited (GCMMFL). Currently, MDPL has a milk processing capacity of
1 LLPD and the company is into expansion of the same to 2 LLPD.
MANTRI INFRASTRUCTURE: CARE Keeps D Debt Rating in Not Cooperating
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Mantri
Infrastructure Private Limited (MIL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non Convertible 247.00 CARE D; ISSUER NOT COOPERATING
Bonds Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Limited (CARE Ratings) had, vide its press release
dated March 22,2024, placed the rating(s) of MIL under the 'issuer
non-cooperating' category as MIL had had failed to provide the
latest information for monitoring of the rating as agreed to in its
Rating Agreement. MIL continues to be noncooperative despite
repeated requests for submission of the latest information for
reviewing the ratings through emails dated February 5, 2025,
February 15, 2025, and February 25, 2025 etc. In line with the
extant SEBI guidelines, CARE Ratings has reviewed the rating on the
basis of the best available information which however, in CARE
Ratings' opinion is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders, and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Detailed description of key rating drivers:
At the time of last rating on March 22, 2024, the following were
the rating weakness (updated for the information available from the
management):
Key weaknesses
* Delays in debt servicing: As confirmed by the management, there
are ongoing delays in debt servicing.
MIPL is a SPV floated by the Mantri group to undertake construction
of Mantri Central retail project in Bengaluru. The project involves
construction of retail mall with leasable area of 5.91 lsf with
construction cost of INR214 crore. MIPL raised an amount of INR250
crore by issuing bonds. The repayment of these bonds will be made
out of excess cashflows of entire Mantri group's existing assets
(residential+ commercial+ retail) post repayment to the existing
senior lenders.
MGM HEALTHCARE: Ind-Ra Assigns BB+ Loan Rating, Outlook Stable
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated MGM Healthcare Pvt
Ltd.'s (MGM) bank facilities as follows:
-- INR280.0 mil. Fund-based working capital limits assigned with
IND BB+/Stable/IND A4+ rating;
-- INR7,234.6 bil. Term loans due on March 31, 2034 assigned with
IND BB+/Stable rating;
-- INR400.0 mil. Non-fund-based working capital limits assigned
with IND A4+ rating; and
-- INR80.0 mil. Proposed fund-based working capital limits
assigned with IND BB+/Stable/IND A4+ rating.
Detailed Rationale of the Rating Action
The rating reflects MGM's weak credit metrics because of a series
of debt-funded acquisitions during FY24-9MFY25. MGM expended
INR4,582 million during FY23-9MFY25 for setting up four hospitals,
with a total capacity of 956 beds. Furthermore, the company plans
to undertake greenfield capex of INR2,890 million, primarily
focused on the Chennai cluster, during FY26-FY27, taking the total
bed count to 1,300 beds. The financial flexibility of the promoters
and timely fund infusions remain key monitorables in Ind-Ra's
view.
Detailed Description of Key Rating Drivers
Capex Undertaken for New Hospital in Chennai; Credit Metrics Remain
Weak but Likely to Recover from FY26-FY27: At end-February 2025,
MGM had undertaken capex of INR3,800 million for the construction
of a 400-bed multi super specialty quaternary care hospital at
Saint Mary's Road at Alwarpet, Chennai. The management expects the
capex to be completed by December 2026. The capex will be funded by
a term loan of INR2,140 million and the remaining either by funds
infusion in the form of unsecured loans or equity and/or through
internal accruals. The purpose of this capex is to expand its
presence in south-east and south-west of Chennai. Ind-Ra expects
the new hospital to start generating revenue from January 2027.
The promoter infused equity of INR499.9 million in 9MFY25 and
additional unsecured loans for funding its debt obligations and
capex. MGM's credit metrics remained weak in 9MFY25 due to an
increase in total debt. The gross interest coverage (operating
EBITDA/gross interest expense) improved to 1.2x in 9MFY25 (FY24:
0.8x; FY23: 1.3x) due to an improvement in the EBITDA to INR443
million (INR332 million; INR442 million). The net leverage
(excluding unsecured loans) (adjusted net debt/operating EBITDA)
stood at 13.2x in FY24 (FY23: 8.6x). Ind-Ra expects the net
leverage (excluding unsecured loans) to fall below 5x from FY26,
supported by improved profitability from new hospitals.
Intense Competition and Regulatory Risk: MGM is exposed to
increased competition from several large hospitals in Tamil Nadu,
where most of its hospitals are located. It also remains exposed to
the regulatory risks faced by the healthcare industry, mainly in
the form of price capping for medical procedures and devices. The
agency believes MGM's strong presence in niche therapies, brand
recall amongst patients in Chennai region and history of consistent
surgical/treatment outcomes will aid its future growth.
Healthy Presence In Key Growth Markets, Led By Strong Brand: MGM
commenced its operations during 2019, with FY21 being the first
full year of operations, with three multi-specialty hospitals in
Chennai, Tamil Nadu, and one in Vizag, Andhra Pradesh. As of
December 2024, MGM had a total of 956 installed beds, of which 740
beds were operational. It is in the process of setting up a 400-bed
hospital in Alwarpet, Chennai. MGM has improved its scale of
operations primarily via acquisitions. MGM's main hospital is in
Amjikarai, Chennai (400 beds); in addition, it operates a cancer
center (150 beds), a hospital in Adyar, Chennai (150 beds –
acquired during FY24), and one in Vizag (256 beds – acquired
during 1HFY25).
MGM has strong brand recall amongst its patients, especially in the
Chennai region, given its strong presence in niche specialties,
especially transplants.
Focus on Niche Specialties; Improving Scale of Operations: As of
February 2025, MGM had four operational hospitals. MGM's hospitals
are multi-specialty tertiary care hospitals, with a niche specialty
in transplants and other surgeries. According to the management,
MGM's hospitals have performed over 700 transplants in total so
far, with a significant success rate. The transplants carried out
by the hospitals are mainly of heart and lungs, which contributed
over 18% to MGM's revenue in FY24 (FY23: 21%). The hospitals also
carry out pancreas, hand and liver transplants. The other key
specialties are cardiology and cardio thoracic surgery (15% of FY24
revenue), oncology (13%), liver surgeries (6.5%), neurology,
neurosurgery & critical care (7.3%), orthopedics (5.1%) and
nephrology (4.4%).
MGM's revenue grew at a CAGR of 26.7% during FY21-FY24. The revenue
stood at INR4,482 million in 9MFY25 (FY24: INR4,312 million, FY23:
INR3,525 million), driven by the addition of new hospitals, leading
to an increase in occupied beds to 345 beds (219, 154), with higher
occupancy rate of 46.7% (45.3%, 54.4%). The in-patient revenue
accounted for 81% of the total revenue in 9MFY25 (FY24: 86%),
followed by out-patient revenue at 15% (12%) and pharmacy revenue
at 4% (2%). The in-patient volumes stood at 21,910 in 9MFY25
(15,546, 13,454). The average in-patient ARPOB for 9MFY25 stood at
INR45,097 million (FY24: INR60,705 million; FY23 INR54,305
million), due to the addition of hospitals. The average length of
stay stood at 3.6 days in 9MFY25 (FY24: 2.8 days; FY23: 4.2 days).
MGM achieved 9.9% EBITDA margins in 9MFY25 (FY24: 7.7%, FY23:
12.5%), as the hospitals have started to absorb the fixed cost.
Ind-Ra expects the revenue and EBITDA margins to improve from FY26
owing to higher capacity utilization, improving average rate per
occupied bed and improving case mix.
Strong Promoter Background, Healthy Financial Flexibility: MGM is
jointly held by MK Rajagopalan (chairman) and his family, including
his son, Dr. Prashanth Rajagopalan, and daughter, Dr. Urjiitha
Rajagopalan. MK Rajagopalan is an educationist who has started
multiple medical colleges in Pondicherry, Karaikal and Chennai,
Tamil Nadu, India region under Sri Balaji Vidyapeeth University.
There are no related party transactions between MGM's hospitals and
promoter-owned colleges or trusts. Furthermore, Ind-Ra has observed
multiple instances of fund infusions by the promoters in MGM in the
past via equity and unsecured loans and expects the same to
continue in the future based on business requirements. The
timeliness of fund infusions by the promoters for discharging
external liabilities (in case needed) shall remain a key
monitorable.
Liquidity
Stretched: MGM's peak month-end utilization of the working capital
limits was 72.5% during the 12 months ended January 2025. Also, it
had cash and bank balance of INR39 million at end-December 2024
(FYE24: INR62 million). It has scheduled debt repayment obligations
of INR932 million for FY25 and INR1,216 million for FY26, which
would be met through funds infusion by the promoters and related
parties. MGM's reported cash flow from operations post tax has been
positive for the past three years (FY24: INR953 million; FY23:
INR1,206 million), on account of continued favorable changes in
working capital. The working capital days have been negative due to
high creditor days up to 120 days. The free cash flow turned
negative at INR970 in FY24 (FY23: INR270 million), mainly due to
the capex undertaken by the company. Ind-Ra expects unconditional
fund infusion from the directors or related parties to fund any
exigencies.
Rating Sensitivities
Positive: An improvement in the operating performance, led by an
increased occupancy, resulting in a sustained improvement in the
revenue and EBITDA, with the net adjusted leverage (excluding
unsecured loans) falling below 4x, and improvement in the
liquidity, all on a sustained basis, could result in a positive
rating action.
Negative: Any deterioration in the operating performance, with
inability to improve the occupancy, or a decline in ARPOB,
resulting in a decline in revenue or low EBITDA, leading to the net
adjusted leverage (excluding unsecured loans) remaining above 5x,
or deterioration in the liquidity, all on a sustained basis, could
result in a negative rating action.
About the Company
MGM, which was founded in 2019, is held by MK Rajagopalan,
chairman, and family including son Dr. Prashanth Rajagopalan and
daughter Dr. Urjiitha Rajagopalan. The promoters started a
charitable trust named Sri Balaji Educational and Charitable Public
Trust, in 1996. MK Rajagopalan is an entrepreneur and an
educationist who started multiple medical colleges in Pondicherry,
Karaikal and Chennai, under the deemed-to-be university named Sri
Balaji Vidyapeeth. The university was formed in the year 2008. One
of the colleges is accredited by the American Heart Association.
Mahatma Gandhi Medical College and Research Institute is the
flagship college of MGM.
MGM, which is known for its organ transplantation programs,
operates through four hospitals, with three hospitals in Tamil Nadu
and one in Vizag. The hospitals are all multi-specialty tertiary
care hospitals. The total installed capacity is 956 beds, of which
740 beds are operational. MGM is in the process of setting up a
400-bed hospital in Alwarpet, Chennai. MGM's hospitals are
accredited by Joint Commission International and National
Accreditation Board for Hospitals, and it has received Platinum
Certifications from the U.S. Green Building Council Leadership in
Energy and Environmental Design.
NOVELTY ASSOCIATES: Ind-Ra Keeps BB Loan Rating in NonCooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Novelty
Associates Private Limited (NAPL) bank facilities' ratings in the
non-cooperating category and has simultaneously withdrawn the same.
The detailed rating actions are:
-- INR108.85 mil. Term loan due on August 31, 2023 maintained in
non-cooperating category and withdrawn; and
-- INR1,073.50 bil. Fund-based working capital limits maintained
in non-cooperating category and withdrawn.
*Maintained at 'IND BB/Stable (ISSUER NOT COOPERATING)' before
being withdrawn
# Maintained at 'IND BB/Stable (ISSUER NOT COOPERATING)/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 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 withdrawal request from the issuer and 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 NAPL while reviewing the
ratings. Ind-Ra had consistently followed up with NAPL over emails,
apart from phone calls since April 2020. The issuer has also not
been submitting the monthly no default statement since April 2020.
Limitations regarding Information Availability
Ind-Ra is unable to provide an updated forward-looking view on the
credit rating of NAPL, 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. NAPL has been
non-cooperative with the agency since April 2020.
About the Company
NAPL is a part of the Novelty group formed by S Kartar Singh in
1950. The group owns Novelty Sweets in Amritsar and has interests
in the food, automobile and real estate businesses.
ORIENT CRAFT: CARE Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Orient
Craft Limited (OCL) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 324.01 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 700.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated February 2,
2024, placed the rating(s) of OCL under the 'issuer
non-cooperating' category as OCL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
OCL continues to be non-cooperative despite repeated requests for
submission of information through emails dated December 18, 2024,
December 28, 2024, January 7, 2025 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
Orient Craft Ltd (OCL), promoted by Mr. Sudhir Dhingra and Mr. K.K.
Kohli in Feb 1978, is in the business of manufacturing ready to
wear garments and home furnishings. The company is one of India's
leading manufacturers and exporters of premium ready-to-wear
garments. The company exports its products to leading international
fashion houses and retail chains, predominantly in the United
States and Europe. OCL is also recognized by the Government as a
four-star export house.
OUR CO: ICRA Keeps D Debt Rating in Not Cooperating Category
------------------------------------------------------------
ICRA has kept the Long-Term rating of Our Co. Infrastructure
Developers Private Limited (OCIDPL) in the 'Issuer Not Cooperating'
category. The rating is denoted as [ICRA]D; ISSUER NOT
COOPERATING”.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 84.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with OCIDPL, ICRA has been trying to seek information from the
entity so as to monitor its performance. Further, ICRA has been
sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been continued to the “Issuer Not
Cooperating” category. The rating is based on the best available
information.
OCIDPL is a private limited company established on September 13,
2007 with an aim of taking up construction projects for Mother's
Pride Group across Delhi – NCR region. The company was inactive
in the initial years and was looking at land in Delhi where it
could set up the building and infrastructure for a Mother's Pride
school. Land of 4.5 acre was purchased in 2013 in sector 57,
Gurgaon where it was proposed to set up 'Presidium' brand of
school. Initially, it was proposed to construct two Blocks namely
Block A and Block B (Phase – I). Subsequently, in August 2013,
Bank of India sanctioned a term loan of Rs 35 crore and the Company
started working on the project. However, expecting more demand, the
Company proposed to expand its school operations and build
additional infrastructure to support this demand. In this
expansion, the Company has envisaged some additional infrastructure
in Blocks A & B, and a whole new Block C having classrooms and
facilities for extra curricular activities (like sports, music
etc.) (Phase–II).
PANCHSHEEL SOLVENT: ICRA Withdraws D Rating on INR12.50cr Loan
--------------------------------------------------------------
ICRA has withdrawn the ratings assigned to the bank facilities of
Panchsheel Solvent Private Limited, at the request of the company
and No Due Certificate received from its bankers in accordance with
ICRA's policy on withdrawal. The Key Rating Drivers and their
description, Liquidity Position, Rating Sensitivities and Key
financial indicators have not been captured as the rated
instruments are being withdrawn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 12.50 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Withdrawn
Cash Credit
Long-term- 12.25 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Withdrawn
Term Loan
Incorporated in 2008, PSPL was promoted by the Lalani family. Prior
to this, the management was engaged in the manufacturing of poultry
feed and PET bottles through its group entities. PSPL is currently
engaged in extracting edible refined bran oil with an installed
capacity of 1,50,000 tonnes per annum (TPA) and 30,000 TPA of
refining unit. Besides,PSPL has flexibility to refine other
crudeoils in the same plant and therefore, started refining
cottonseed crude oil since February 2015. The manufacturing
facility of the company is located at Rajnandgaon, Chhattisgarh.
RIVER FRONT: Ind-Ra Hikes Loan Rating to BB, Outlook Stable
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded River Front
Developers Private Limited's (RFDPL) term loan rating to 'IND BB'
with a Stable Outlook from 'IND BB-/Negative(ISSUER NOT
COOPERATING)' as follows:
-- INR850 mil. Term loan due on March 31, 2029 upgraded with
IND BB/Stable rating.
Detailed Rationale of the Rating Action
The upgrade reflects RFDPL's achievement of financial closure. The
ratings also reflect the medium offtake risk, time and cost overrun
associated with project completion, and industry risks. Ind-Ra
expects the unit booking velocity to increase in the medium term as
the project approaches completion. The rating, however, is
supported by the company's successful completion and sale of three
other projects in Cuttack, and the promoters' decade of experience
in the industry.
Detailed Description of Key Rating Drivers
Medium Offtake Risk: The rating factors in the medium offtake risk
for RFDPL, as only 332 units out of the total 662 units had been
booked as of December 2024. The project has dependence on customer
advances (55% of the total cost) for project completion and with
the receivable of already booked units, along with the term loan
pending for disbursement, RFDPL can complete the construction of
the ongoing projects. As of December 2024, the firm had pending
receivables of around INR2,088.9 million, against the pending
construction cost of INR1,618 million. Ind-Ra expects the
collection of receivables to increase in the medium term as the
project approaches completion.
Time and Cost Overrun Risks: Although the project construction is
in line with the execution schedule, there exists time and cost
overrun risks. The total cost of the ongoing projects is estimated
to be INR3,443 million, which is to be funded by the promoter's
contribution of INR240 million (7%), customer advances of
INR1,892.82 million (55%), unsecured loan from promoters of INR460
million (13%) and a term loan of INR850 million (25%). As of
December 2024, RFDPL's total cost incurred was INR1,545 million
(promoter's contribution: INR132.92 million; unsecured loan form
the promoters: INR366.98 million; customer advances: INR723.9
million and term loan: INR425 million). Also, given the
aggressively improving supply scenario, there is significant
competition.
Achievement of Financial Closure: RFDPL has achieved financial
closure for its ongoing projects – Dion's Twin Tower and Dion's
Skywalk. In Dion's Twin Tower, the cost to be incurred as of
December 31, 2024 was INR1,492.65 million, whereas the receivables
on the area sold amounted to INR1,606.4 million and the term loan
pending for disbursement is INR300 million, leading to excess funds
available over the cost of around INR413.8 million. In Dion's
Skywalk also, the excess funds available over cost amount to around
INR202.5 million, where the cost to be incurred as on 31 December
2024 was INR404.92 million against receivables available on the
area sold of INR482.4 million clubbed with pending disbursement of
term loan of INR125 million.
Favorable Location: The ongoing projects are located in Cuttack,
which is nearly 10km from the Cuttack airport, around 8km from the
Cuttack Junction railway station, situated by the Kathajodi river,
and are in proximity to shopping complexes, educational hubs and
hospitals.
Established Operational Track Record; Experienced Promoters: The
promoters have around a decade of experience in the real estate
development business. The company, so far, has successfully
completed and sold more than three projects with limited time and
cost overruns. The group has completed projects of 601,757 square
feet until end-January 2025.
Liquidity
Stretched: The rating is constrained by the likely cash
flow-mismatch risk, if the advances from customer are received
slower than Ind-Ra's expectations. This cashflow mismatch can
likely impact the debt service coverage ratio. The rating is
further constrained by the company's lack of access to the capital
market. The company has scheduled debt repayments of INR275
million, INR425 million and INR150 million in FY27, FY28 and FY29,
respectively.
Rating Sensitivities
Negative: Time or cost overruns and lower-than-Ind-Ra-expected
sales volume or lower realization from bookings, leading to
stressed cash flows, could lead to a negative rating action.
Positive: Higher-than-expected sales and the timely receipt of
advances from customers, leading to stronger cash flows, could lead
to a positive rating action.
About the Company
RFDPL is a consortium of Dion Infratech Pvt Ltd and SCS
Constructions India Pvt Ltd, incorporated in August 2020 and
promoted by Manoj Sahoo. The company is constructing two
residential and commercial real estate projects in Cuttack. Dion's
Twin Tower and Dion's Skywalk were registered with Real Estate
Regulatory Authority in August 2022 and May 2022, respectively.
RURAL IMPROVEMENT: Ind-Ra Cuts Bank Loan Rating to B-
-----------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded RURAL
IMPROVEMENT PROJECT rating to 'IND B-/Negative (ISSUER NOT
COOPERATING)'. The issuer did not participate in the surveillance
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 action is:
-- INR50 mil. Proposed bank Loan downgraded with IND B-/Negative
(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Detailed Rationale of the Rating Action
The downgrade is in accordance with Ind-Ra's policy of Guidelines
on What Constitutes Non-Cooperation. As per the policy, ratings of
non-cooperative ratings issuers may get downgraded during
subsequent reviews, if the issuer continues to remain
non-cooperative. With passage of time and absence of updated
information, the risk of sustaining the rating at current levels by
relying on dated information increases, which may be reflected
through a downgrade rating action
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with RURAL IMPROVEMENT PROJECT
while reviewing the rating. Ind-Ra had consistently followed up
with RURAL IMPROVEMENT PROJECT over emails, apart from phone
calls.
Limitations regarding Information Availability
Ind-Ra has reviewed the credit ratings of RURAL IMPROVEMENT PROJECT
on the basis of best available information and is unable to provide
a forward-looking credit view. Hence, the current outstanding
rating might not reflect RURAL IMPROVEMENT PROJECT'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.
About the Company
RIP is a voluntary organization formed in 1985 by a group of
persons involved in All India Catholic University Federation and
committed to rural development and social change. RIP was
registered as trust in April 1986 with a view to launching
innovative educational programs and development activities for the
upliftment and wellbeing of the rural poor. Until March 1992, RIP's
activities were limited to educational interventions like seminars
and trainings for women and youth. RIP is mainly engaged in
providing micro credit loans to SHGs.
S.K. AGROS: ICRA Keeps B Debt Ratings in Not Cooperating Category
-----------------------------------------------------------------
ICRA has kept the Long-Term ratings for the Bank facilities of S.K.
Agros in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]B(Stable) ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 9.50 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 0.50 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with S.K. Agros, ICRA has been trying to seek information from the
entity so as to monitor its performance. Further, ICRA has been
sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been continued
to the "Issuer Not Cooperating" category. The rating is based on
the best available information.
S.K. Agros is a partnership firm, engaged in the business of
milling, processing and selling of basmati rice, and has a fully
automated plant at Fazilka (Punjab) which has a milling capacity of
4 tonnes per hour. The byproducts of basmati rice viz husk, rice
bran and 'phak' are sold in the domestic market.
SAANJ AUR: ICRA Keeps B+ Debt Rating in Not Cooperating Category
----------------------------------------------------------------
ICRA has kept the Long-Term ratings for the Bank Facility of Saanj
Aur Savera Educational and Welfare Trust (SAS) in the 'Issuer Not
Cooperating' category. The ratings is denoted as "[ICRA]B+(Stable)
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 10.30 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with SAS, ICRA has been trying to seek information from the entity
so as to monitor its performance. Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
SAS was formed in 2003 and runs the Delhi Public School in Pinjore
(Haryana), which commenced operations in AY 2004-05. The trust is
managed by a four-member committee, headed by Dr. D. R. Arora. In
addition to the senior secondary school under SAS, the trustees
have also set up pre-schools (under the name Shemrock) and senior
secondary schools (under the name Shemford) across the country,
which are primarily managed by franchisees.
SAI MAATARINI: Ind-Ra Keeps D Loan Rating in NonCooperating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Sai Maatarini
Tollways Limited's (SMTL) term loan rating in the non-cooperating
category. The issuer did not participate in the surveillance
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 the
rating. The rating will continue to appear as 'IND D (ISSUER NOT
COOPERATING)' on the agency's website.
The detailed rating action is:
-- INR13,973.5 bil. Term loans (Long-term) due on October 1, 2027
maintained in non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Detailed Rationale of the Rating Action
The rating has been maintained in the non-cooperating category in
accordance with Ind-Ra's policy, Guidelines on What Constitutes
Non-Cooperation.
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with SMTL while reviewing the
rating. Ind-Ra had consistently followed up with SMTL through
emails, apart from phone calls. The issuer has also not submitted
the no default statement since March 2024.
Limitations regarding Information Availability
Ind-Ra is unable to provide an updated forward-looking view on the
credit rating of SMTL, 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 the rating. SMTL has been
non-cooperative with the agency since March 20, 2023.
About the Company
SMTL is a special purpose vehicle, incorporated to implement a
166.17km-lane expansion (two-to-four laning) between Panikolli and
Rimuli in Odisha on National Highway 215, under a 24-year
concession agreement from the National Highways Authority of India
'(IND AAA/Stable)'. The project was terminated on January 28, 2020
due to non-completion of balance construction works.
SHARADHA TIMBERS: ICRA Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
Timbers in the 'Issuer Not Cooperating' category. The ratings are
denoted as "[ICRA]D; ISSUER NOT COOPERATING/[ICRA]D; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 2.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Short-term 16.75 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Rating continues to remain under
Others 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Sri Sharadha Timbers, ICRA has been trying to seek information
from the entity so as to monitor its performance. Further, ICRA has
been sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been continued to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
Sri Sharadha Timbers is a proprietorship firm owned by Mr. Narashia
Manji Patel. It was established in 2002 and is involved in the
business of sawing and trading of timber, mainly imported wood. The
customers of SST include dealers, wholesalers and
retailers.
SIDDARTH ORGANISATION: ICRA Keeps B+ Ratings in Not Cooperating
---------------------------------------------------------------
ICRA has kept the Long-Term and Short-Term ratings for the Bank
facilities of Siddarth Organisation (SG) in the 'Issuer Not
Cooperating' category. The rating are denoted as "[ICRA]B+(Stable)
ISSUER NOT COOPERATING/[ICRA]A4 ISSUER NOT COOPERATING ".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ 7.84 [ICRA]B+ (Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain
under issuer not cooperating
category
Long Term- 2.16 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with SG, ICRA has been trying to seek information from the entity
so as to monitor its performance. Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
Siddarth Group (SG) was established in 1984 in Jaipur. Siddarth
Group is engaged in the manufacturing of ladies garments, kids
garments, scarfs and fashion accessories. Siddarth Group comprises
of three Independent units producing Ladies and Children Garments
namely Siddarth Organisation, Siddarth Organisation Limited and
Siddarth Intercraft Private Limited. The factory is geared up to
deliver 2 million Garments annually. The company is engaged in
manufacturing and trading of garments primarily for women (such as
kurtis, cardigans, tops, coats, tunics, leggings, dresses, pants,
leggings & salwar kameez). The company caters to mid-range of
products with price range of the products varying from Rs 500-Rs
5000 per piece.The company's brand portfolio includes products that
range from affordable and mass-market to luxurious, highend styles
that cater to every age group, from children to women. Siddarth
Group has four Brands -Paprika, Surasa, Jaipuri Kurti, Chickpea.
SIESTA LAMINATES: CARE Lowers Rating on INR25cr LT Loan to B
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Siesta Laminates Private Limited (SLPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 25.00 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B+; Stable
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated February 16,
2024, placed the rating(s) of SLPL under the 'issuer
non-cooperating' category as SLPL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
SLPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated January 1, 2025,
January 11, 2025, January 21, 2025 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of SLPL have been
revised on account of non-availability of requisite information.
Analytical approach: Standalone
Outlook: Stable
Mehsana (Gujarat)-based, SLPL was incorporated by three directors,
Mr. Ambalal Patel, Mr. Sunil Patel and Mr. Jayant Patel in 2011.
The company is engaged in manufacturing decorative laminates sheets
having 8 x 4 size and 0.7 mm to 1.0 mm thickness, which find their
application mainly in furniture and real estate industry. The unit
is located at Mehsana District in Gujarat and has a production
capacity of 30 lakh HP (High Pressure) decorative sheets per annum
as on March 31, 2021. The company offers numerous types of HP
decorative sheets in form of country wood, rose valley, color core,
metal series, diamond leather, etc. The company sales its products
with brand names of 'XVENZA' or 'SIESTA' in the market. Major
required raw materials for decorative sheets are craft papers, base
papers and various chemicals like melamine, etc. which the company
avails from Gujarat and Maharashtra. The company generates its
major revenue from the states of Gujarat, Maharashtra, Karnataka
and Rajasthan through its dealers.
SOMA NUTRITION: ICRA Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA has kept the Long-term rating of Soma Nutrition Labs Private
Limited (SNLPL) in the 'Issuer Not Cooperating' category. The
rating is denoted as [ICRA]D; ISSUER NOT COOPERATING."
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 8.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Long-term- 2.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long Term- (2.00) [ICRA]D; ISSUER NOT COOPERATING;
Interchangeable Rating Continues to remain under
'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with SNLPL, ICRA has been trying to seek information from the
entity so as to monitor its performance. Further, ICRA has been
sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been continued to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
Soma Nutrition Labs Pvt. Ltd. (SNLPL) was incorporated in 2013 and
will be involved in the business of manufacturing and exporting
therapeutic and supplementary food for malnourished children across
the world as well as in India. Mr. Hemant Phatak, who is the
Managing Director of the company, has an experience of over two
decades in a 2 similar line of business. SNLPL's registered office
is in Borivali, Mumbai with a factory at Jejuri near Pune spread
over an area of 6050 sq. meter. It has a Group company Phoenix
Trading and Consulting Pvt. Ltd., which is involved in the trading
of non-food items for the underprivileged.
SSI GOLD: Ind-Ra Hikes LongTerm Rating to BB+, Outlook Stable
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded SSI Gold House
Private Limited's (SGHPL) long-term bank facilities to 'IND BB+'
from 'IND BB' with a Stable Outlook, and affirmed the short-term
bank facilities at 'IND A4+', as follows:
-- INR400 mil. Fund-based working capital limit Long-term rating
upgraded; Short-term rating affirmed with IND BB+/Stable/IND
A4+ rating;
-- INR100 mil. Fund-based working capital limits assigned with
IND BB+/Stable/IND A4+ rating; and
-- INR100 mil. Term loan due on September 30, 2027 assigned with
IND BB+/Stable rating.
Detailed Rationale of the Rating Action
The upgrade reflects SGHPL's improved scale of operations and
EBITDA margins in FY24. Ind-Ra expects the revenue and credit
metrics to improve, while the EBITDA margin to remain at a similar
level, in FY25. The ratings continue to be constrained by the
highly competitive nature of the jewelry business and the company's
revenue dependence on a single store.
Detailed Description of Key Rating Drivers
Store Concentration and Industry Risks: SGHPL's operations are
concentrated to a single store in Chennai, exposing the company to
geographical concentration risk. SGHPL also faces high competition
from local jewelers, and its profit margins are susceptible to gold
price movements. Additionally, the gold jewelry industry has
witnessed high regulatory oversight over the past decade, with
several policy interventions. The industry has been subject to
several compliances including mandatory hallmarking along with
restrictions on bullion purchase and gold saving schemes in the
past. The introduction of any new regulation could increase
compliance costs for the industry.
Improvement in Scale of Operations: SGHPL's revenue rose to
INR2,894.33 million in FY24 (FY23: INR1,790.27 million) and EBITDA
of INR176.46 million (INR33.48 million). The scale of operations
was medium. In FY24, the revenue improved due to the stabilization
of business operations and improved realization. SGHPL derives
80%-90% of its revenue from gold-based products such as ornaments
and bullions. Till 9MFY25, SGHPL booked revenue of INR2,597.78
million. Ind-Ra expects the revenue to improve in FY25 due to
increasing gold prices.
Improvement in EBITDA Margin: The ratings also factor in SGHPL's
healthy EBITDA margin which rose to 6.10% in FY24 (FY23: 1.87%)
with a return on capital employed of 25.61% (9.6%). In FY24, the
EBITDA margin improved due to the economies of scale coupled with
improved fixed cost absorption. Ind-Ra expects the EBITDA margin to
remain at similar levels in FY25.
Credit Metrics Expected to Improve: The ratings also reflect
SGHPL's modest credit metrics as reflected by the interest coverage
(operating EBITDA/gross interest expenses) of 1.5x in FY24 (FY23:
2.9x) and the net leverage (total adjusted net debt/operating
EBITDAR) of 3.5x (20.2x). In FY24, the interest coverage
deteriorated due to an increase in the interest expense on account
of interest charges on unsecured loans, whereas the net leverage
improved due to the increase in the EBITDA. Ind-Ra expects the
credit metrics to improve due to an increase in the EBITDA, despite
an increase in the debt levels. SGHPL has planned capex of INR130
million to be completed by FY26, of which INR100 million funded
through a term loan and the remaining through internal accruals.
Liquidity
Stretched: SGHPL's average maximum utilization of the fund-based
limits was 89.20% during the 12 months ended December 2024. The net
working capital cycle reduced to 101 days in FY24 (FY23: 142 days),
on account of a reduction in creditor days due to advanced payment
for purchases. The company provides one to two days credit period
to its customers. The inventory holding period is around 100 days
The cash flow from operations stood at INR44.69 million in FY24
(FY23: negative INR217.38 million) and it improved due to the
increase in EBITDA. Resultantly, the free cash flow rose to
INR40.72 million (FY23: negative INR218.85 million) in absence of
capex. The cash and cash equivalents stood at INR3.25 million at
FYE24 (FYE23: INR2.44 million). However, SGHPL does not have any
capital market exposure and relies on banks and financial
institutions to meet its funding requirements.
Rating Sensitivities
Negative: A substantial decrease in the scale of operations or
operating profitability, or deterioration in the overall credit or
the liquidity profile, on a sustained basis, could lead to a
negative rating action.
Positive: An improvement in scale of operations, achievement of
stable operating profitability and the interest coverage staying
above 2.8x, on a sustained basis could lead to a positive rating
action.
About the Company
SGHPL, a subsidiary of Sakthi Steel Industries Limited (SSIL), was
established in April 2022 as a retail jewelry store in Chennai. It
is a franchise of AVR Swarna Mahal and deals in gold ornaments,
diamond, platinum, silver, and other gift items.
TAJ AGRO COMMODITIES: ICRA Keeps B+/A4 Ratings in Not Cooperating
-----------------------------------------------------------------
ICRA has kept the Long-term and Short-Term rating of Taj Agro
Commodities Private Limited (TAC) in the 'Issuer Not Cooperating'
category. The ratings are denoted as [ICRA]B+(Stable); ISSUER NOT
COOPERATING/[ICRA]A4; ISSUER NOT COOPERATING."
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ 50.00 [ICRA]B+ (Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Fund Based/ Rating Continues to remain
Non Fund Based under issuer not cooperating
category
As part of its process and in accordance with its rating agreement
with TAC, ICRA has been trying to seek information from the entity
so as to monitor its performance. Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
Incorporated in 2004, Taj Agro Commodities Pvt. Ltd. (TAC) is
engaged in the import and trading of pulses in the domestic market
as well as exports of chickpeas (which are exempted from the
exports ban). The product profile of the company includes red and
green lentils, green peas, black mapte, moong beans, pigeon peas,
chickpeas, yellow peas, brown and black eye beans. The product mix
is largely dependent on the demand–supply scenario. Crimson/red
lentils (masoor dal) are a core sales component currently. TAC is a
part of the Trimurti Group, which owns a building of ~4,000
square feet in proximity to the Agriculture Produce Market
Committee (APMC), Vashi, which is also its registered and
administrative office. It also has two godowns in the APMC market.
TAJ AGRO: ICRA Keeps B+ Debt Rating in Not Cooperating Category
---------------------------------------------------------------
ICRA has kept the Long-term rating of Taj Agro Industries Llp (Taj
LLP) in the 'Issuer Not Cooperating' category. The rating is
denoted as [ICRA]B+(Stable); ISSUER NOT COOPERATING."
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 10.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Taj Llp, ICRA has been trying to seek information from the
entity so as to monitor its performance. Further, ICRA has been
sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been continued to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
Established in May 2014 and promoted by Mr. Himmatlal Chandra and
Mr. Jayesh Ganatra, Taj Agro Industries LLP, (Taj LLP) is engaged
in processing of pulses namely, red lentils, yellow lentils, pigeon
peas, crimson/red lentils. Based out of Navi Mumbai, Taj LLP has a
processing facility located in Asangaon, Thane with an installed
capacity to process 24,000 MTPA of food grain, pulses and lentils
(dal). The firm sells processed pulses to distributors, processors,
exporters across India.
TAPASYA SHIKSHA: CARE Lowers Rating on INR6.55cr LT Loan to B
-------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Tapasya Shiksha Samiti (TSS), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.55 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING and Downgraded from
CARE B+; Stable
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated March 15, 2024,
placed the rating(s) of TSS under the 'issuer non-cooperating'
category as TSS had failed to provide information for monitoring of
the rating as agreed to in its Rating Agreement. TSS continues to
be non-cooperative despite repeated requests for submission of
information through emails dated January 29, 2025, February 8,
2025, February 18, 2025 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings have been revised on account of non-availability of
requisite information.
Analytical approach: Standalone
Outlook: Stable
TSS was formed as a society on October 2, 2000, under the Madhya
Pradesh Society Registration Act, 1973. The society was established
with a view to establish and operate educational institutes.
Currently, TSS is managing five institutes namely Radharaman
Institute of Technology and Science (RITS), Radharaman College of
Pharmacy (RCP), Radharaman Institute of Pharmaceutical Science
(RIPS), Radharaman Engineering College (REC) and Radharaman
Institute of Nursing (RIN). RITS, REC and RIRT provides various
courses under Bachelor's of Engineering such as Computer Science &
Engineering, Electronics & Communication Engineering, Information
Technology Electrical & Electronics and Mechanical Engineering
along with Master's in Technology. Further RITS and REC also offer
Master of Business Administration (M.B.A) in Financial Management,
Human Resource Management and Marketing Management. RCP and RIPS
offers courses in department of Pharmacy both Bachelor and Master
in Pharma. The various institutes also provides diplomas in
engineering programme. The society provides the hostel facility and
transportation facility to the students. All the colleges of TSS is
approved by All India Council for Technical Education (AICTE),
affiliated by Rajiv Gandhi Proudyogiki Vishwavidyalaya (RGPV) & 3
CARE Ratings Ltd. Press Release Barkatullah University (BU).
Further it is ISO certified and accredited by National Board of
Accreditation (NBA) and Pharmacy Council of India (PCI) approved.
TIRUPATI STRUCTURES: Ind-Ra Affirms B+ Bank Loan Rating
-------------------------------------------------------
India Ratings and Research (Ind-Ra) has taken the following rating
actions on Tirupati Structures (India) Private Limited's (TSIPL)
bank facilities:
-- INR230 mil. Fund-based working capital limits assigned with
IND B+/Stable rating;
-- INR10 mil. Proposed Fund-based working capital limits assigned
with IND B+/Stable rating;
-- INR70 mil. Term loan due on November 15, 2027 assigned with
IND B+/Stable rating; and
-- INR250 mil. Fund-based working capital limits affirmed with
IND B+/Stable rating.
Detailed Rationale of the Rating Action
The ratings reflect TSIPL's continued small scale of operations,
sustained modest EBITDA margins and continued modest credit
metrics. However, the ratings are supported by the promoter's
experience in the steel manufacturing industry. Furthermore, Ind-Ra
expects TSIPL's revenue and EBITDA margins to improve in FY25.
Detailed Description of Key Rating Drivers
Scale of Operations Continues to be Small: TSIPL's revenue
increased slightly to INR2,449.62 million in FY24 (FY23:
INR2,239.47 million) due to improved demand from customers. During
8MFY25, TSIPL booked revenue of INR2,502.42 million, backed by
growth in demand. In FY25, Ind-Ra expects the revenue likely to
improve on a yoy basis, considering the revenue recorded in 8MFY25.
EBITDA Margins Remain Modest: TSIPL's EBITDA margin fell to 0.70%
in FY24 (FY23: 1.46%), mainly because of inventory losses,
resulting from reduced steel prices. The return on capital employed
was 2.40% in FY24 (FY23: 7.30%). The EBITDA margin improved to
2.50% in 8MFY25 as the company was able to procure steel at lower
prices. In FY25, Ind-Ra expects the EBITDA margin to be higher on a
yoy basis.
Continued Modest Credit Metrics: TSIPL's credit metrics
deteriorated in FY24 because of a decline in the EBITDA to INR17.10
million (FY23: INR32.59 million). The interest coverage (operating
EBITDA/gross interest expenses) stood at 0.33x in FY24 (FY23:
1.16x). The interest payment in FY24 was funded by the unsecured
loans infused by the promoters of INR17.18 million and also through
internal liquidity. The net leverage (total adjusted net
debt/operating EBITDAR) stood at 25.23x in FY24 (FY23: 12.01x). In
FY25, Ind-Ra expects the credit metrics to improve because of a
likely improvement in the EBITDA.
Experienced Promoters: The ratings are supported by the promoters'
experience of more than three decades in steel manufacturing, which
has led to well-established relationships with customers as well as
suppliers.
Liquidity
Poor: TSIPL's average maximum utilization of the fund-based limits
was 85.40% during the 12 months ended January 2025. The cash flow
from operations turned positive at INR5.57 million in FY24 (FY23:
negative INR 194.93 million) owing to a favorable change of
INR35.56 million in working capital (FY23: negative INR202.51
million). However, the free cash flow remained negative at
INR45.86 million in FY24 (FY23: negative INR209.22 million) due to
the capex of INR51.43 million incurred by the company during the
year. The average net working capital cycle improved to 34 days in
FY24 (FY23: 51 days), mainly on account of a decline in inventory
days to 26 days (42 days). TSIPL has term loan repayment
obligations of INR18.30 million and INR19.70 million for FY25 and
FY26, respectively. As per the company, these repayment obligations
would be met through infusions of unsecured loans by the promoters,
if required. The cash and cash equivalents stood at INR13.17
million at FYE24 (FYE23: INR6.88 million). TSIPL does not have any
capital market exposure and relies on banks and financial
institutions to meet its funding requirements.
Rating Sensitivities
Negative: A decline in the scale of operations, leading to
deterioration in the overall credit metrics, or further
deterioration in the liquidity position, could lead to a negative
rating action.
Positive: A substantial improvement in the scale of operations,
liquidity position and the credit metrics, with the interest
coverage exceeding 1.5x, all on a sustained basis, will be positive
for the ratings.
About the Company
Incorporated in 2000 by Anand Agrawal, TSIPL supplies a wide range
of ISI-certified mild steel products that are used in various
construction works. Also, the entity is the authorized distributor
of the mild steel products manufactured by Jindal Steel and Power
Limited.
TRIMURTHI HITECH: ICRA Keeps C+ Debt Ratings in Not Cooperating
---------------------------------------------------------------
ICRA has kept the Long-Term and Short-Term ratings of Trimurthi
Hitech Company Private Limited in the 'Issuer Not Cooperating'
category. The ratings are denoted as "[ICRA]C+; ISSUER NOT
COOPERATING/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 4.75 [ICRA]C+; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Short Term- 2.75 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
Others to remain under 'Issuer Not
Cooperating' category
Long Term/ 2.50 [ICRA]C+/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain
under issuer not cooperating
category
As part of its process and in accordance with its rating agreement
with Trimurthi, ICRA has been trying to seek information from the
entity so as to monitor its performance. Further, ICRA has been
sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been continued to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
Trimurthi Hitech Company Pvt Ltd was incorporated in the year 1989
by Mr B.L Kabra and Mr Sundeep Kabra who have close to two decades
of experience as EPC contractors for various government projects.
The company predominantly takes up electrification works for
railway projects in southern India. By virtue of the long standing
experience of the promoters in execution of such projects, the
company is prequalified to take up overhead electrification works,
high voltage substation contracts and civil tenders for government
projects.
TRIVENI WIRES: Ind-Ra Withdraws BB+ Term Loan Rating
----------------------------------------------------
India Ratings and Research (Ind-Ra) has revised the Outlook on
Triveni Wires Private Limited's (TWPL) 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:
-- INR86.55 mil. Proposed term loan** migrated to non-cooperating
category and withdrawn;
-- INR58.15 mil. Term loan** due on September 30,2026 migrated to
non-cooperating category and withdrawn; and
-- INR170 mil. Fund-based working capital limit* migrated to non-
cooperating category and withdrawn.
*Migrated to 'IND BB+/Negative (ISSUER NOT COOPERATING)'/'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 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 ratings, 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 TWPL while reviewing the
ratings. Ind-Ra had consistently followed up with TWPL 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 TWPL, 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 on December 8, 1981, TWPL is in the business of wire
galvanizing since 1982. It has a 3,600MTPA galvanizing unit located
in Butibori, Nagpur. Premkumar Tekriwal, Ramakant Tekriwal, and
Arunkumar Tekriwal and other members of the Tekriwal family are the
promoters of the company.
VADIM INFRASTRUCTURE: ICRA Keeps D Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has kept the Long-Term and Short-Term ratings of Vadim
Infrastructure Private Limited in the 'Issuer Not Cooperating'
category. The ratings are denoted as "[ICRA]D; ISSUER NOT
COOPERATING/[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 2.30 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Short-term- 2.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Short-term 4.05 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Rating continues to remain under
Others 'Issuer Not Cooperating'
Category
Long-term/ 1.65 [ICRA]D/[ICRA]D; ISSUER NOT
Short Term COOPERATING; Rating Continues to
Unallocated remain under 'Issuer Not
Cooperating' Category
As part of its process and in accordance with its rating agreement
with Vadim Infrastructure Private Limited, ICRA has been trying to
seek information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Vadim Infrastructure Private Limited was incorporated in Chennai in
2004 and has a diversified presence across four states with branch
offices in Coimbatore, Hyderabad, Bhubaneswar, and Nagpur. VIPL is
an EPC contractor and undertakes design, engineering, procurement
and execution of turnkey projects. The company has more than 14
years of experience in power, industrial, and infrastructure
sectors. VIPL also provides design and detail engineering in the
areas of piping, civil and structural work.
VAISHNAVI FOOD: ICRA Keeps B- Debt Rating in Not Cooperating
------------------------------------------------------------
ICRA has kept the Long-Term rating of Vaishnavi Food Products (VFP)
in the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B- (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 6.00 [ICRA]B- (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with VFP, ICRA has been trying to seek information from the entity
so as to monitor its performance. Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
Incorporated in 2011, Vaishnavi Food Products (VFP) is promoted by
Mr. Ashok Kumar. Since inception, the firm has been engaged in
processing and freezing of Green Peas as well as other vegetables.
The firm started its commercial operations in 2011 at its
manufacturing unit located at Sultanpur Patti,Bazpur (U.S. Nagar).
The firm has the production facility of 2 MT of peas per hour. The
firm also has four warehouses which have the facility to store 2000
MT of peas in one warehouse and 500 MT in the other three.
VAKRANGEE FOUNDATION: Ind-Ra Cuts Term Loan Rating to B-
--------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Vakrangee
Foundation rating to 'IND B-/Negative (ISSUER NOT COOPERATING)'.
The issuer did not participate in the surveillance 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 action is:
-- INR35.30 mil. Term loan due on February 28, 2022 downgraded
with IND B-/Negative (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Detailed Rationale of the Rating Action
The downgrade is in accordance with Ind-Ra's policy of Guidelines
on What Constitutes Non-Cooperation. As per the policy, ratings of
non-cooperative ratings issuers may get downgraded during
subsequent reviews, if the issuer continues to remain
non-cooperative. With passage of time and absence of updated
information, the risk of sustaining the rating at current levels by
relying on dated information increases, which may be reflected
through a downgrade rating action
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with Vakrangee Foundation while
reviewing the rating. Ind-Ra had consistently followed up with
Vakrangee Foundation over emails, apart from phone calls.
Limitations regarding Information Availability
Ind-Ra has reviewed the credit ratings of Vakrangee Foundation on
the basis of best available information and is unable to provide a
forward-looking credit view. Hence, the current outstanding rating
might not reflect Vakrangee Foundation'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.
About the Company
Vakrangee Foundation was established in July 2010 and is
incorporated under the Societies Registration Act, 1973. Founded by
Manish Bohra and Bhawna Bohra, the society runs the Academic World
School in Bemetara, Chhattisgarh.
VEERAJ CONSTRUCTION: ICRA Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------------
ICRA has kept the Long-Term and Short-Term ratings for the Bank
Facility of Veeraj Construction in the 'Issuer Not Cooperating'
category. The ratings are denoted as "[ICRA]D ISSUER NOT
COOPERATING/[ICRA]D ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Short-term 6.50 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Rating continues to remain under
Others 'Issuer Not Cooperating'
Category
Long-term- 3.50 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Veeraj Construction, ICRA has been trying to seek information
from the entity so as to monitor its performance. Further, ICRA has
been sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been continued to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
Veeraj Construction, a partnership firm based out of Nashik,
Maharashtra, is involved in executing irrigation and water supply
projects on a turnkey basis. The firm was established as a
proprietorship firm in 2006 by Mr. Sanjay Kotecha who traces his
lineage to Kotecha Group – the second largest manufacturer of
prestressed pipes in India. The proprietorship concern was
converted into a partnership firm in 2009, with Mrs. Vandana
Kotecha, wife of Mr. Sanjay, as the partner.
VIJAY INDUSTRIES: ICRA Keeps B+ Debt Rating in Not Cooperating
--------------------------------------------------------------
ICRA has kept the Long-Term rating of Vijay Industries (VI) in the
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B+ (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 7.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with VI, ICRA has been trying to seek information from the entity
so as to monitor its performance. Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
Vijay Industries (VI) was incorporated in 1978 as the flagship firm
of the Data Group, Vijay Industries commenced commercial production
from April 26, 1978 in Khairthal with 20 pairs of kolhus for
crushing mustard seeds. The facilities have been expanded and
modernised at regular intervals and the firm is now operating with
52 pairs of kolhus, a packaging plant and a seed crushing plant
with a capacity of crushing 80 MT of mustard seeds per day (~18000
MTPA). The firm markets its products primarily in the Northern and
Eastern parts of India under the brand name of 'Scooter'. The firm
was reconstituted in April 2009 with replacement of Mr. Babu Lal
Data (HUF) by Mr. Babu Lal Data and his sons, Mr. Deepak Data and
Mr. Ajay Data.
VIKRANT FORGE: Ind-Ra Moves B- Loan Rating to Non-Cooperating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Vikrant Forge
Private Limited's (VFPL) bank facilities to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency through
phone calls and emails. Thus, the rating is based on the best
available information. Therefore, investors and other users are
advised to take appropriate caution while using these ratings. The
ratings will now appear as 'IND B-/Negative (ISSUER NOT
COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR80 mil. Non-fund-based working capital limit migrated to
non-cooperating category with IND A4 (ISSUER NOT COOPERATING)
rating;
-- INR90 mil. Fund-based working capital limit migrated to non-
cooperating category with IND B-/Negative (ISSUER NOT
COOPERATING) rating; and
-- INR192.63 mil. Term loan due on September 30, 2028 migrated to
non-cooperating category with IND B-/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 is 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 and
a continued delay in the resolution of VFPL's account as the
company has been in the process of bringing the account out of the
non-performing asset (NPA) status for which the compliance
requirements were pending. The company is also looking for
alternative measures. However, there was no delay in its debt
servicing and the company's accounts remain active. Ind-Ra expects
the resolution of the account to take more time.
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interactions with VFPL while reviewing the
ratings. Ind-Ra had consistently followed up with VFPL over emails
since December 20, 2024, apart from phone calls. The issuer has
submitted the 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 VFPL, 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. VFPL has been
non-cooperative with the agency since December 2024.
About the Company
VFPL was incorporated on November 25, 1985. The company
manufactures industrial forgings at its facility in Hooghly
district, West Bengal. The operations of the company also include
machined and finish machining. The company has an installed
capacity of 2,400MT. The company serves the domestic and
international customers.
WAVIN INDUSTRIES: Ind-Ra Places BB+ Bank Loan on Rating Watch
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has placed Wavin Industries
Limited's (formerly known as Vectus Industries Limited) (WIL) bank
facility on Rating Watch with Developing Implications as follows:
-- INR910 mil. Fund-based working capital limit Placed on Rating
Watch with Developing Implications with IND BB+/Rating Watch
with Developing Implications/IND A4+/Rating watch with
Developing Implications.
Analytical Approach
To arrive at the ratings, Ind-Ra continues to take a fully
consolidated view of WIL and two of its wholly-owned subsidiaries,
Wavin India Holding Private Limited and Wavin India Pipes and
Fittings Manufacturing Private Limited, together referred to as the
Wavin group, as all the companies operate in the same line of
business and have a common management. Ind-Ra has also factored in
the availability of support to WIL from its ultimate parent, Orbia
Advance Corporation (Fitch Ratings Ltd.: Issuer Default Rating:
'BBB'/Stable, having 100% shareholding in WIL, through its
wholly-owned subsidiary and WIL's immediate parent, Wavin B.V.
Until last year, Ind-Ra had considered a consolidated view of WIL's
subsidiaries Gangotri Polymers Private Limited, Sunrise Tanks
Private Limited, Wavin India Holding and Wavin India Pipes and
Fittings Manufacturing for WIL's ratings. However, in FY25, there
has been a divestment of the group's business in which Gangotri
Polymers and Sunrise Tanks have been sold under a slump sale. Also,
a peer and median comparison is being adopted.
Detailed Rationale of the Rating Action
Ind-Ra has placed the rating on Rating Watch with Developing
Implications in view of the memorandum of understanding (MOU)
signed during FY25 for the planned acquisition of Wavin by Supreme
Industries Limited. The acquisition is scheduled to be completed in
FY26.
Detailed Description of Key Rating Drivers
Continuation of Operational losses due to lower capacity
utilization: In FY22, the consolidated turnover of Wavin group was
INR8,160 million, out of which around 42% of its revenue was
derived from its now discontinued business. Wavin group had been
incurring losses on account of huge capacities been installed in
the initial phases of the business of the subsidiaries including
Wavin India Holdings and Wavin India Pipes & Fittings Manufacturing
but the same was not being absorbed due to lower capacity
utilization. The Wavin group recorded a revenue of INR6,673 million
and INR6,232 million in FY23 and FY24, respectively, from its
continuing operations and will continue to focus only on its core
P&F segment. The company incurred EBDITA losses of INR716 million
and INR959 million, in FY23 and FY24, respectively, consequently
resulting in net losses (including losses from discontinuing
operations) of INR1,714 million and INR1,980 million in FY23 and
FY24, respectively. The company managed liquidity for its
operations partly by reducing its working capital requirement in
the form of lower inventory, support from its parent in the form of
external commercial borrowing and the utilization of its available
bank lines in the last two years. In the current financial year,
till October 2024, the group has already recorded a turnover of
around INR4,129 million with an operational loss of INR684million.
As per the management, a policy and other strategy changes are
underway, which will lead to an improvement in the operating
profitability along with the expected improvement in the capacity
utilization from 2025. An improvement in the operating
profitability will remain a key monitorable in the near term.
Availability of Support From A Strong And Reputed Higher Rated
Parent: WIL has received continuous support from its ultimate
parent, Orbia Advance Corporation (Fitch Ratings Ltd. Issuer
Default Rating: 'BBB'/Stable, having 100% shareholding in WIL,
through its wholly-owned subsidiary and WIL's immediate parent,
Wavin B.V. The current outstanding rating of Orbia is equivalent to
AAA on the Indian scale.
Divestment By Way Of Slump Sale Ensuring Liquidity For Smooth
Functioning And Specialized Focus On Pipes And Fittings Business :
In FY25, the management sold off WIL's tanks, bath ware & household
(TBH) business as it wanted to focus on its core business. Wavin,
being a globally recognized brand for its products and solutions in
the P&F segment, will now focus only on this segment only. WIL
received around INR1,435 million as slump sale consideration,
boosting its liquidity significantly. WIL became a 100% subsidiary
of its parent, Wavin B.V, in FY25 by the purchase of its minority
shares of 33%. Although the Wavin group comprises WIL and its two
subsidiaries, i,e., Wavin India Holdings and Wavin India Pipes &
Fittings Manufacturing, the management's long-term vision is to
ultimately merge all the entities and operate under one company
only. The company will continue to reap the benefits of its
experienced core management team since it has always been a
professionally managed company and divestment does not result in
any change in the core team.
Liquidity
Stretched: The group's utilization of the fund-based limits was 65%
during the 12 months ended October 2024. The group had cash and
cash equivalents of around INR125.29 million at FYE24 (FYE23:
INR322.34 million). The cash flow from operations remained negative
at INR316.49 million in FY24 (FY23: negative INR259.56 million) due
to the continuation of operational losses despite favorable changes
in the working capital. The free cash flow was also negative at
INR546.41 million in FY24 (FY23: INR722.83 million) due the annual
capex requirement of INR229.92 million (INR482.51 million). The
net-working capital cycle improved to 10 days in FY24 (FY23: 130
days) due to a fall in the inventory days to 70 (194). The company
received support from its parent in the form of external commercial
borrowing of INR1537 million in FY24; the need-based parent support
will continue, further providing a liquidity support to WIL and its
subsidiaries. The group has no repayment obligations in the next
three years. Also, the group has received a support letter from
Orbia Advance which is valid until February 2025.
Rating Sensitivities
The Rating Watch with Developing Implications indicates that the
ratings may be affirmed or downgraded or upgraded upon resolution.
The Rating Watch with Developing Implications will be resolved
within as and when the agency receives additional information from
the issuer with respect to the MOU signed for the acquisition of
Wavin and updated operational information for analyzing the
impact of the same on the company's credit profile.
About the Company
WIL was initially manufacturing plastic water tanks, polypropylene
random copolymer piping systems, polyvinyl chloride and chlorinated
polyvinyl chloride piping systems, plastic pipe fittings,
polyethylene manholes and various kinds of plastic molded articles
for agricultural and household purposes. Now, it is solely involved
in in the P&F business.
WEST GUJARAT: Ind-Ra Affirms D NonConvertible Debts Rating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed West Gujarat
Expressway Limited's (WGEL) non-convertible debentures' (NCDs)
rating as follows:
-- INR653.24^ mil. Senior, secured, redeemable non-convertible
debentures (long-term)* affirmed with IND D rating.
^Outstanding amount is INR653.24 million
* Details in annexure
Analytical Approach
Ind-Ra continues to take a standalone view of WGEL to arrive at the
rating.
Detailed Rationale of the Rating Action
The affirmation reflects the continued non-payment of the
company's debt obligations on account of the termination of the
project by National Highways Authority of India (NHAI, 'IND
AAA'/Stable) with effect from April 1, 2022.
Detailed Description of Key Rating Drivers
Termination of Project: The project was terminated by the NHAI on
account of the concessionaire's default, and the toll is no longer
being collected by the concessionaire. The draft of the settlement
agreement between the NHAI and WGEL has been finalized. Also, the
liquidation process of the entity has been initiated. WGEL is in
the process of obtaining relevant approvals for the same.
About the Company
WGEL is a special purpose vehicle set up to develop, design,
finance, construct, operate and maintain a 68km Jetpur Gondal and
Rajkot bypass section (National Highway 8B including Rajkot bypass)
in Gujarat. The project was awarded by the NHAI and involves
widening the existing Jetpur-Gondal section (two to four laning,
26km), improving the existing four-lane Gondal-Rajkot Section
(32km), and widening the existing Rajkot bypass (two to four
laning, 10km).
WOODIND: ICRA Keeps D Debt Ratings in Not Cooperating Category
--------------------------------------------------------------
ICRA has kept the Long-Term and Short-term ratings of The Woodind
in the 'Issuer Not Cooperating' category. The ratings are denoted
as "[ICRA]D; ISSUER NOT COOPERATING/ [ICRA]D; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- (6.00) [ICRA]D; ISSUER NOT
Interchangeable COOPERATING; Rating Continues
to remain under issuer not
cooperating category
Short term- 10.00 [ICRA]D; ISSUER NOT
Non fund based COOPERATING; Rating Continues
Others to remain under 'Issuer Not
Cooperating' Category
As part of its process and in accordance with its rating agreement
with The Woodind, ICRA has been trying to seek information from the
entity so as to monitor its performance. Further, ICRA has been
sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been continued to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
The Woodind, initially established as proprietorship concern in
2006 by Mr. Russal M Easa, was later converted in to a partnership
firm in December 2013. The firm is engaged in trading of timber.
The firm imports timber mainly from Latin American countries and
also from African countries. The timber imported belongs to two
main categories -Teak and Pincoda. The firm is located in Kochi
(Kerala) and caters to the needs of the wholesalers as well as the
retailers in North Kerala.
ZINZUWADIA BROTHERS: ICRA Keeps B+ Debt Rating in Not Cooperating
-----------------------------------------------------------------
ICRA has kept the Long-Term ratings for the Bank facilities of
Zinzuwadia Brothers Jewellers (ZBJ) in the 'Issuer Not Cooperating'
category. The rating is denoted as "[ICRA]B+(Stable) ISSUER NOT
COOPERATING ".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 8.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with ZBJ, ICRA has been trying to seek information from the entity
so as to monitor its performance. Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
Zinzuwadia Brothers Jewellers (ZBJ) was established in 1969, as a
wholesaler and trader of gold, silver jewellery with operations
based in Ahmedabad. The firm entered the retail jewellery business
in 1993 with first retail store in C G Road, Ahmedabad and
continued trading operations as well as through a sister concern
called Zinzuwadia & Co. The firm is a part of the Zinzuwadia group
which consists of 6 showrooms in Ahmedabad. However, the trading
operations were discontinued from 2013 following the separation of
the sister concern and the firm is currently engaged only in retail
sale of gold, silver and diamond jewellery. The firm currently
operates out of its 2100 sq. ft. showroom in C.G. Road with
workforce 20 trained personnel.
===============
M A L A Y S I A
===============
CAPITAL A: Deadline for Aviation Assets Takeover Extended to May 30
-------------------------------------------------------------------
The Edge Malaysia reports that Capital A Bhd on March 24 said the
cut-off date to dispose of its short-haul aviation business worth
MYR6.8 billion to its sister company AirAsia X Bhd has been
extended for the second time, to May 30.
The original cut-off date of January 25 was previously extended to
March 25, before this latest two-month extension, The Edge
relates.
"This is to allow additional time for the company and AAX to,
amongst others, obtain the approval and/or consent of the relevant
authorities, financiers/lenders and/or third parties as well as for
AAX to finalise the definitive terms with the identified investors
in relation to AAX's proposed pre-completion private placement
exercise," Capital A said in an exchange filing.
Shareholders of both Capital A and AAX approved the merger of
Capital A's short-haul airline business into AAX in October last
year.
The Edge notes that the corporate exercise is intended to help
Capital A exit its Practice Note 17 (PN17) status, which it fell
into in 2022.
On March 7, Capital A received approval from Bursa Malaysia for its
proposed regularisation plan. Following this, Capital A chief
executive officer Tan Sri Tony Fernandes was quoted as saying that
he expects the group to exit the PN17 status by May.
About Capital A
Capital A Bhd, formerly known as AirAsia Group Bhd, provides
low-cost air carrier service. The company provides services on
short-haul, point-to-point domestic and international routes.
Capital A, headquartered in Malaysia, operates from hubs in
Malaysia, Thailand, Indonesia, Philippines and India. The airline's
Malaysia and Thailand operations are undertaken via AirAsia Bhd and
Thai AirAsia Co Ltd while AirAsia Group's Indonesia and Philippines
operations are managed under PT Indonesia AirAsia and Philippines
AirAsia Inc.
Capital A triggered the PN17 suspended criteria in July 2020 after
its external auditors, Ernst & Young PLT, issued an unqualified
audit opinion with material uncertainty relating to going concern
in respect of its audited financial statements for the financial
year ended Dec. 31, 2019 (FY19) and its shareholders' equity on a
consolidated basis was 50% or less of its share capital.
Capital A also triggered the prescribed criteria pursuant to
Paragraph 8.04 and Paragraph 2.1(a) of PN17 of Bursa's Main Market
Listing Requirements (Main LR), where AirAsia's shareholders'
equity on a consolidated basis was 25% or less of its share capital
and the shareholders' equity is less than MYR40 million based on
the audited financial statements for FY20.
Following relief measures introduced by Bursa and the Securities
Commission Malaysia, Capital A was not classified as a PN17 listed
issuer and was not required to comply with the obligations under
Paragraph 8.04 and PN17 of the Main LR for a period of 18 months
from the date of the first relief announcement, theedgemarkets.com
said. The date of the first relief announcement was July 8, 2020,
and the 18-month period ended on Jan. 7, 2022. Under the relief
measures, companies that triggered any of the suspended criteria
between April 17, 2020 and June 30, 2021, would not be classified
as a PN17 and Guidance Note 3 (GN3) company for 12 months.
As reported in the Troubled Company Reporter-Asia Pacific in
mid-October 2024, shareholders have backed plans for budget carrier
AirAsia to be bought by its long-haul associate, AirAsia X paving
the way for the Malaysian-based airlines to finalise their
consolidation by the end of the year.
AirAsia X shareholders approved the proposed acquisition of Capital
A's equity interest in AirAsia units for MYR6.8 billion (US$1.6
billion) on Oct. 16, 2024, after Capital A shareholders gave the
nod on Oct. 14 to the deal, company statements said, according to
Reuters.
Capital A CEO Tony Fernandes said on Oct. 14, 2024, the disposal of
AirAsia Berhad and AirAsia Aviation Group, which includes AirAsia
units in Thailand, Indonesia, Philippines, and Cambodia, will pave
the way for Capital A's restructuring and exit from PN17 status.
The TCR-AP reported on March 17, 2025, that Capital A Berhad has
reached a major milestone in its financial transformation journey
with the approval of its Proposed Regularisation Plan by Bursa
Malaysia Securities Berhad.
=====================
N E W Z E A L A N D
=====================
3 SWEETS: Court to Hear Wind-Up Petition on April 3
---------------------------------------------------
A petition to wind up the operations of 3 Sweets Limited will be
heard before the High Court at Christchurch on April 3, 2025, at
10:00 a.m.
Saneet Investments Limited filed the petition against the company
on Feb. 18, 2025.
The Petitioner's solicitor is:
Peter James Broad
Level 1, 1/208 Great South Road
Papatoetoe
Auckland
APEX SECURITY: Court to Hear Wind-Up Petition on May 2
------------------------------------------------------
A petition to wind up the operations of Apex Security Limited will
be heard before the High Court at Auckland on May 2, 2025, at 10:00
a.m.
New Zealand Consulting Services Limited filed the petition against
the company on Feb. 5, 2025.
The Petitioner's solicitor is:
Hayden Dempsey
c/o JB Morrison Lawyers
Floor 7, 126 Lambton Quay
Wellington Central
Wellington
CHALLENGE MARINE: In Liquidation; Owes NZD1.2MM to IRD & ACC
------------------------------------------------------------
The Press reports that companies linked to a troubled businessman
are finally being wound up years after they stopped trading, with
NZD1.2 million owed after new buyers defaulted.
Challenge Marine Ltd, a boat engineering business previously based
in Nelson, and Basalaj Properties Ltd, an investment business, were
placed into voluntary liquidation this month.
Inland Revenue and ACC were the only creditors with NZD1.2 million
claimed against Challenge Marine and NZD70,000 from Basalaj
Properties, The Press discloses citing initial liquidator reports.
The Press relates that liquidator Brenton Hunt said he was advised
both companies stopped trading in 2021.
"Challenge Marine sold its business to a new owner under a vendor
arrangement in August 2018. The purchaser company was placed into
liquidation in August 2021, which resulted in no funds for
Challenge Marine," The Pres quotes Mr. Hunt as saying.
The purchaser, Challenge Marine (2018) Ltd, owed NZD3.8 million to
creditors.
Basalaj Properties found itself in a similar situation with a
different purchaser.
"The director was working on some alternative recoveries for last
few years, but none of these came to fruition," Mr. Hunt said.
"Inland Revenue debt from back when it was trading has increased
with penalties and interest and Inland Revenue were looking at
recovery action."
Both companies were directed by Nevil Basalaj for more than two
decades before his wife took over in December 2021. He remained a
shareholder of both.
Mr. Basalaj's wife Amber took over another two companies the pair
owned on the same December date in 2021.
He previously made headlines when his company Nelson Reliance
Engineering went under in 2018, with creditor claims climbing to
NZD4.8 million.
In 2020, Mr. Basalaj was was sentenced to 300 hours' community work
and ordered to pay NZD318,000 to Inland Revenue for withholding
PAYE and other wage deductions. At the time, his lawyer said he had
chosen to pay his 50 or so employees over paying tax.
Amber Basalaj solely owns cosmetic retailer Basalaj Beauty through
another company, and was the official beauty partner of New Zealand
Fashion Week in 2023, the report adds.
FAVORABLE BUY: Creditors' Proofs of Debt Due on April 20
--------------------------------------------------------
Creditors of Favorable Buy International Trading Limited are
required to file their proofs of debt by April 20, 2025, to be
included in the company's dividend distribution.
The High Court at Auckland appointed Adam Botterill and Damien
Grant of Waterstone Insolvency as liquidators on March 14, 2025.
FOSSIL FUEL: Creditors' Proofs of Debt Due on April 16
------------------------------------------------------
Creditors of Fossil Fuel Customs Limited and Sleeping Beauty
Limited are required to file their proofs of debt by April 16,
2025, to be included in the company's dividend distribution.
The company commenced wind-up proceedings on March 19, 2025.
The company's liquidator is:
Mohammed Tazleen Nasib Jan
Liquidation Management Limited
PO Box 50683
Porirua 5240
LUME TRUSTEE: Court to Hear Wind-Up Petition on April 4
-------------------------------------------------------
A petition to wind up the operations of Lume Trustee Company
Limited will be heard before the High Court at Auckland on April 4,
2025, at 10:00 a.m.
Auckland Council filed the petition against the company on Nov. 28,
2024.
The Petitioner's solicitor is:
Kirstin Margaret Wakelin
135 Albert Street
Auckland
PARTY KINGDOM: Placed in Liquidation; Owe More Than NZD200,000
--------------------------------------------------------------
The New Zealand Herald reports that an Auckland children's party
venue and school care provider is in liquidation owing more than
NZD200,000 to creditors and Inland Revenue.
NZ Herald relates that Party Kingdom, in Stanmore Bay, closed its
doors last week after eight years.
Iain Shephard and Jessica Kellow of BDO Wellington were appointed
liquidators of Party Kingdom 2022 Ltd, NZ Herald discloses.
=================
S I N G A P O R E
=================
CAROMA SINGAPORE: Creditors' Proofs of Debt Due on April 22
-----------------------------------------------------------
Creditors of Caroma Singapore Pte. Ltd. are required to file their
proofs of debt by April 22, 2025, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on March 14, 2025.
The company's liquidators are:
Chek Khai Juat
Tay Tuan Leng
c/o Tricor Singapore
9 Raffles Place
#26-01 Republic Plaza
Singapore 048619
CITADINES KYOTO: Creditors' Proofs of Debt Due on April 21
----------------------------------------------------------
Creditors of Citadines Kyoto Gojo (S) Pte. Ltd. are required to
file their proofs of debt by April 21, 2025, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on March 14, 2025.
The company's liquidators are:
Leow Quek Shiong
Gary Loh Weng Fatt
Seah Roh Lin
c/o BDO Advisory
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
KB-MAX PTE: Court to Hear Wind-Up Petition on April 4
-----------------------------------------------------
A petition to wind up the operations of KB-Max Pte. Ltd. will be
heard before the High Court of Singapore on April 4, 2025, at 10:00
a.m.
RHB Bank Berhad filed the petition against the company on March 10,
2025.
The Petitioner's solicitors are:
Messrs. Harry Elias Partnership LLP
SGX Centre 2
#17-01, 4 Shenton Way
Singapore 068807
PROOFER BAKERY: Court to Hear Wind-Up Petition on April 4
---------------------------------------------------------
A petition to wind up the operations of Proofer Bakery Pte. Ltd.
will be heard before the High Court of Singapore on April 4, 2025,
at 10:00 a.m.
I Design & Build Pte Ltd filed the petition against the company on
March 11, 2025.
The Petitioner's solicitors are:
Drew & Napier LLC
10 Collyer Quay
#10-01 Ocean Financial Centre
Singapore 049315
TIMEMOVER PTE: Court to Hear Wind-Up Petition on April 4
--------------------------------------------------------
A petition to wind up the operations of Timemover Pte. Ltd. will be
heard before the High Court of Singapore on April 4, 2025, at 10:00
a.m.
Maybank Singapore Limited filed the petition against the company on
March 14, 2025.
The Petitioner's solicitors are:
Shook Lin & Bok LLP
1 Robinson Road
#18-00, AIA Tower
Singapore 048542
=====================
S O U T H K O R E A
=====================
[] SOUTH KOREA: Insolvent Companies Hit 6-Year High
---------------------------------------------------
The Chosun Daily reports that nearly 12% of South Korean firms
became insolvent last year due to the downturn in construction and
real estate, marking the highest level since 2019. These companies,
burdened with more debt than assets, face complete capital erosion
and financial instability.
Chosun Daily, citing the Federation of Korean Industries (FKI)
discloses that about 4,466 companies, or 11.9% of all 37,510
externally audited companies (excluding financial firms), are
expected to be completely insolvent. This marks an increase of 116
companies (2.7%) from 4,350 in 2023 and represents the highest
number in six years, since analysis began in 2019. The insolvency
probability also reached a record high of 8.2% last year.
By industry, real estate and rental businesses faced the highest
risk at 24.1%, feeling the direct impact of the construction
downturn. Next came utilities (15.7%), health and social welfare
services (14.2%), and arts and leisure services (14.0%). The
construction sector showed the steepest increase, with its
insolvency risk (6.1%) nearly doubling from five years ago (3.3%)
due to fewer orders amid high interest rates and inflation.
Chosun Daily adds that an FKI official warned, "More insolvent
companies rapidly increase uncertainty by worsening the real
economy and expanding financial market risks," adding that "risks
must be reduced through lower financing costs and liquidity
support."
=================
S R I L A N K A
=================
[] SRI LANKA: Some Non-Profit State Entities Face Likely Closure
----------------------------------------------------------------
Sri Lanka Mirror reports that a Cabinet-appointed committee that
looked into reforming state-owned non-commercial institutions has
recommended a string of restructuring measures, including winding
up some state institutions, ending state intervention with several
other institutions and amalgamation of some.
The liquidation of 12 non-commercial state entities coming under
six ministries has been recommended by the committee along with the
winding up of the Sri Lanka Mahaweli Authority and the Cashew
Corporation. Others for which liquidation is recommended include
the Galle Heritage Foundation, the National Ocean Affairs Committee
Secretariat and the Information and Communication Technology
Agency.
Sri Lanka Mirror relates that the committee has also recommended
that the three state-owned media institutions, namely the Sri Lanka
Broadcasting Corporation, the Rupavahini Corporation and the
Independent Television Network, be placed under a single management
so as to improve efficiency and make them commercially viable.
According to Sri Lanka Mirror, the committee said these media
institutions needed significant investment for their survival, and
hence its recommendation for single management.
Other institutes recommended for amalgamation are the Sri Lanka Tea
Board and the Tea Small Holdings Development Authority, as well as
the Coconut Cultivation Board, Coconut Development Authority and
the Palmyra Development Board.
Sri Lanka Mirror notes that the committee headed by the Prime
Minister's Secretary, Pradeep Saputantri, was appointed in December
last year to review all non-commercial state statutory institutions
in the country, with a view to strengthening public service
delivery and addressing inherent inefficiencies. It assessed 160
institutions coming under 24 ministries.
Prime Minister Harini Amarasuriya submitted the committee report to
Cabinet on March 24, and approval was given to implement its
proposals.
Sri Lanka Mirror says the committee found that some state
institutions were running efficiently and should be managed in the
same manner while recommending private-public partnerships to run
others. The report said that the Sri Lanka Film Corporation, for
example, could be run efficiently if it partnered with a private
partner so that its dependency on the Treasury could be minimised.
The committee also recommended the amalgamation of the Office of
the Commissioner General of Rehabilitation, the National Authority
on Tobacco and Alcohol and the National Dangerous Drugs Control
Board.
With regard to the Sir John Kotalawala Hospital, the committee said
that the institution does not make any profits and has become a
burden to the treasury and, therefore, recommends that a committee
be appointed to study how it can be turned into a financially
viable institution, Sri Lanka Mirror relays.
On the Sri Lanka Press Council, the committee recommends that it be
continued with a change in name to Sri Lake Media Council to widen
its reach.
The committee also noted that large extents of land that belong to
different state institutions are lying idle and recommended that
steps be taken to manage these in a manner for the benefit of the
public, adds Sri Lanka Mirror.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2025. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000.
*** End of Transmission ***