/raid1/www/Hosts/bankrupt/TCRAP_Public/250410.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, April 10, 2025, Vol. 28, No. 72
Headlines
A U S T R A L I A
GUARDIAN NURSING: First Creditors' Meeting Set for April 14
INFINITE GREEN: Enters Administration; 1st Meeting Set for April 17
NATIONAL FACADES: First Creditors' Meeting Set for April 14
PASKAL TILE: First Creditors' Meeting Set for April 16
PEPPER ASSET 2: Fitch Hikes Rating on Class D Notes to 'B+sf'
RANTARNA PTY: First Creditors' Meeting Set for April 14
REACON AUSTRALIA: Placed in Administration
TWO SHORT: First Creditors' Meeting Set for April 15
C H I N A
CHINA EVERGRANDE: Liquidators Sue Hong Kong Golf Club
COUNTRY GARDEN: Creditor OKs Restructuring of at Least 8 Bonds
COUNTRY GARDEN: Sales Slump Persists as Revival Proves Elusive
I N D I A
AGRO INDUS: ICRA Reaffirms B+ Rating on INR10cr LT Loan
AJIT KUMAR: ICRA Keeps B Debt Ratings in Not Cooperating Category
AL-FALAH FROZEN: CARE Keeps D Debt Rating in Not Cooperating
ALMIGHTY AGROTECH: CARE Keeps B- Debt Rating in Not Cooperating
ALPINE PANELS: ICRA Keeps D Debt Ratings in Not Cooperating
AMBIKA MARKETING: CARE Lowers Rating on INR14.46cr LT Loan to B
AMBIKA PULSES: CARE Lowers Rating on INR15cr LT Loan to B
BALAJI CONSTRUCTIONS: ICRA Keeps B+ Ratings in Not Cooperating
C.M. ABDUL: CARE Reaffirms B+ Rating on INR0.55cr LT Loan
DEKSON CASTINGS: CARE Assigns D Rating to INR10.17cr LT Loan
DP JAIN: ICRA Lowers Rating on INR1173.02cr Term Loan to B+
INDURE PRIVATE: ICRA Withdraws D Rating on INR1,400cr ST Loan
K B D INDUSTRIES: ICRA Lowers Rating on INR0.75cr Loans to D
KBK BIOTECH: ICRA Lowers Rating on INR75cr LT Loan to B+
NAGARKURNOOL MUNICIPALITY: ICRA Keeps B+ Rating in Not Coop.
PARAGON FINANCE: ICRA Withdraws B+ Issuer Rating
SCORPIOS APPARELS: ICRA Keeps B+ Debt Ratings in Not Cooperating
SIMAR PORT: ICRA Withdraws B+ Rating on INR174cr LT Loan
UNITED BREWERIES: Court Cancels UB City Unit Sale, Orders Auction
N E W Z E A L A N D
ALFRISTON DEVELOPMENT: Court to Hear Wind-Up Petition on May 9
LOUVRE INNOVATIONS: Creditors' Proofs of Debt Due on May 20
MB PONSONBY: Khov Jones Appointed as Receivers
NGA TAMARIKI: Court to Hear Wind-Up Petition on May 6
ORACLE EUROPEAN: Grant Bruce Reynolds Appointed as Liquidator
STAFF SERVICES: Is Insolvent, Creditors Owed NZD525,000
S I N G A P O R E
AKS TECH: Court to Hear Wind-Up Petition on April 11
IMPERIUM GOURMET: Court Enters Wind-Up Order
KAARYAKA SINGAPORE: Court to Hear Wind-Up Petition on April 11
LIVFRESH Pte: Court Enters Wind-Up Order
TRANSCENDENCE MANAGEMENT: Court Enters Wind-Up Order
S O U T H K O R E A
HOMEPLUS CO: Workers Demand Rehabilitation Plan to Protect Rights
V I E T N A M
FORTUNE VIETNAM: Moody's Affirms 'B1' Deposit & Issuer Ratings
SAIGON-HANOI COMMERCIAL: Moody's Affirms 'B1' Issuer Rating
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A U S T R A L I A
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GUARDIAN NURSING: First Creditors' Meeting Set for April 14
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of Guardian
Nursing Agency Pty Ltd will be held on April 14, 2025 at 11:00 a.m.
online via videoconference only.
Roberto Crispino and Richard Albarran of Hall Chadwick were
appointed as administrators of the company on April 2, 2025.
INFINITE GREEN: Enters Administration; 1st Meeting Set for April 17
-------------------------------------------------------------------
pv magazine reports that renewable hydrogen developer Infinite
Green Energy (IGE) has entered administration less than 24 hours
before an application for a "winding up order" was due to be heard
before the Western Australian Supreme Court.
IGE had been fighting an application filed by Queensland-based
investor DD Investment to have liquidators appointed over its
failure to repay AUD3.85 million debt, pv magazine relates.
Documents filed with the Australian Securities and Investments
Commission show KordaMentha's Richard Tucker and Jared Palandri
were appointed as administrators to the Perth-headquartered company
and nine of its subsidiaries on April 7, according to pv magazine.
The documents show a first meeting of the creditors will be held on
April 17, 2025 to consider the company's immediate future.
Infinite Green Energy (IGE), formerly Infinite Blue Energy, is
behind the Arrowsmith hydrogen project planned for the central
coast of Western Australia. The developer has laid out plans to
build up to 5 GW of renewable energy capacity at the site to
produce more than 100,000 tonnes of green hydrogen per annum for
the domestic and international markets.
The company has also partnered with Samsung C&T and Doral Energy to
develop a demonstration green hydrogen production facility at
Northam. The MEG HP1 project, which would leverage the 11 MW
Northam Solar Farm that IGE owns and operates, was to produce 4.4
tonnes of hydrogen a day from two 5 MW electrolysers.
IGE has also teamed with Swiss renewable energy producer Axpo to
develop a green hydrogen project in central Italy. The proposed
Valle Peligna project includes a 30 MW electrolyser powered by a 45
MW solar farm. The production facility was expected to deliver
about 12 tonnes of green hydrogen per day.
NATIONAL FACADES: First Creditors' Meeting Set for April 14
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of National
Facades Australia Pty Ltd will be held on April 14, 2025 at 3:00
p.m. at the offices of Merchants Advisory at Level 15, 175 Pitt
Street in Sydney and online via Microsoft Teams.
Louisa Sijabat of Merchants Advisory was appointed as administrator
of the company on April 2, 2025.
PASKAL TILE: First Creditors' Meeting Set for April 16
------------------------------------------------------
A first meeting of the creditors in the proceedings of Paskal Tile
& Stone Pty Ltd will be held on April 16, 2025 at 11:00 a.m. via
teleconference only.
Stephen Dixon of Hamilton Murphy Advisory was appointed as
administrator of the company on April 4, 2025.
PEPPER ASSET 2: Fitch Hikes Rating on Class D Notes to 'B+sf'
-------------------------------------------------------------
Fitch Ratings has upgraded three note classes from Pepper Asset
Securities No. 2 Trust's pass-through floating-rate notes. The
Outlook is Positive. The transaction is backed by a pool of
first-ranking Australian automotive and equipment loan and lease
receivables originated by Pepper Asset Finance Pty Limited, a
subsidiary of Pepper Money Limited (Pepper). The notes were issued
by BNY Trust Company of Australia Limited as trustee for Pepper
Asset Securities No.2 Trust.
The upgrade of the class B, C and D notes by one notch each to
'BBB+sf', 'BB+sf' and 'B+sf', respectively, was driven by the
build-up of credit enhancement (CE), overcollateralization and the
transaction's stable asset performance, which offset the updated
portfolio default and recovery expectations. The Positive Outlook
reflects the notes' sensitivity to increased recoveries and
decreased defaults against Fitch's expectations of an increase in
CE over the next 12 months.
Entity/Debt Rating Prior
----------- ------ -----
Pepper Asset Securities
No.2 Trust
B AU3FN0088803 LT BBB+sf Upgrade BBBsf
C AU3FN0088811 LT BB+sf Upgrade BBsf
D AU3FN0088829 LT B+sf Upgrade Bsf
KEY RATING DRIVERS
Stable Asset Performance: Obligor default is a key input in its
quantitative analysis. The performance of the underlying assets has
been in line with its base-case expectations set at the
transaction's closing. The 30+ and 60+ day arrears were 1.7% and
0.8%, respectively, of end-February 2025, tracking in line with
Fitch's 4Q24 Dinkum ABS Index of 30+ and 60+ arrears of 1.6% and
0.8%.
Cumulative defaults and losses were 0.64% and 0.57%, respectively.
Cumulative recoveries as of end-February 2025 were 9.9%, below
Fitch's base case recovery of 35%, as actual cumulative recovery
rates may be understated because there may be receivables that have
defaulted but yet to receive recoveries.
Its performance expectations reflect the stable performance since
the transaction's closing as well as the expected performance for
the remaining term of the transaction.
The assumptions used in this analysis are detailed below and result
in a higher weighted-average expected portfolio loss rate of 17.95%
compared to 16.26% at closing. Higher expected losses reflect
Fitch's recently updated expectations for the Pepper Auto ABS
portfolio:
Non-novated Risk Grade A: 4.5% (4.75x);
Non-novated Risk Grade B: 9.0% (4.00x);
Non-novated Risk Grade C: 17.5% (3.00x); and
Novated: 1.1% (7.75x)
The recovery base case is 35.0%, with a 'AAAsf' recovery haircut of
60.0% across all risk grades. The haircut is interpolated for lower
rating levels. The 'Bsf' recovery haircut is 10.0%.
The new weighted-average 'AAAsf' remaining loss rate (RLR) for the
portfolio, incorporating the updated base cases and the portfolio's
current composition with respect to the aforementioned sub-groups,
is 18.0%.
Tight Labour Market Supports Outlook: Portfolio performance is
supported by Australia's continued growth and tight labour market.
GDP growth was 1.3% in 2024 and unemployment was 4.1% in February
2025. Fitch expects unemployment to increase to 4.5% in 2025 and
forecast GDP growth of 1.9%, rising to 2.1% in 2026.
Cash Flow Analysis Supports Ratings: Updated cash flow analysis was
performed, and incorporates Fitch's default and recovery
expectations. The transaction is currently paying principal
sequentially, with the ability to switch to pro rata paydown when
pro rata criteria are satisfied. The CE provided to each
collateralised rated note through note subordination, along with
the liquidity reserve and retention amount, supports the rating of
the notes.
Low Operational and Servicing Risk: All receivables were originated
by Pepper Asset Finance, which demonstrated adequate capability as
originator, underwriter and servicer. Servicer disruption risk is
mitigated by back-up servicing arrangements. The nominated backup
servicer is BNY Trust Company of Australia Limited. Fitch undertook
an operational and file review and found that the operations of the
servicer were comparable with those of other auto and equipment
lenders.
The key rating drivers listed in the applicable sector criteria,
but not mentioned above, are not material to this rating action.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Transaction performance may be affected by changes in market
conditions and the economic environment. Weakening asset
performance is strongly correlated with increasing levels of
delinquencies and defaults that could reduce CE available to the
notes.
Unanticipated increases in the frequency of defaults could produce
loss levels higher than Fitch's base case and are likely to result
in a decline in CE and remaining loss-coverage levels available to
the notes. Decreased CE may make certain note ratings susceptible
to negative rating action, depending on the extent of coverage
decline. Hence, Fitch conducts sensitivity analysis by stressing a
transaction's initial base-case assumptions. Fitch stresses the
recovery rate to isolate the effect of a change in recovery
proceeds at the borrower level.
Downgrade Sensitivity
Classes: B / C / D
Ratings: BBB+sf, BB+sf, B+sf
Expected impact on the notes' ratings of increased defaults (class
B/C/D)
Increase default rates by 10%: BBBsf/BBsf/less than Bsf
Increase default rates by 25%: BBB-sf/BBsf/ less than Bsf
Increase default rates by 50%: BB+sf/Bsf/less than Bsf
Expected impact on the notes' ratings of reduced recoveries (class
B/C/D)
Reduce recovery rates by 10%: BBB+sf/BB+sf/Bsf
Reduce recovery rates by 25%: BBBsf/BB+sf/ less than Bsf
Reduce recovery rates by 50%: BBBsf/BBsf/ less than Bsf
Expected impact on the notes' ratings of increased defaults and
reduced recoveries (class B/C/D)
Increase default rates by 10% and reduce recovery rates by 10%:
BBBsf/BBsf/ less than Bsf
Increase default rates by 25% and reduce recovery rates by 25%:
BB+sf/BB-sf/ less than Bsf
Increase default rates by 50% and reduce recovery rates by 50%:
BBsf/ less than Bsf /less than Bsf
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
An upgrade could result from macroeconomic conditions, loan
performance and credit losses that are better than Fitch's baseline
scenario or sufficient build-up of CE that would fully compensate
for credit losses and cash flow stresses commensurate with higher
rating scenarios, all else being equal.
Upgrade Sensitivity
Classes: B / C / D
Ratings: BBB+, BB+, B+sf
Expected impact on the notes' ratings of reduced defaults (class
B/C/D)
Reduce default rates by 10%: 'A-sf'/'BBB-sf'/'BBsf'
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset pool
and the transaction. Fitch has not reviewed the results of any
third-party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.
Prior to the transaction closing, Fitch sought to receive a third
party assessment conducted on the asset portfolio information, but
none was made available to Fitch for this transaction.
As part of its ongoing monitoring, Fitch reviewed a small, targeted
sample of the originator's origination files and found the
information contained in the reviewed files to be adequately
consistent with the originator's policies and practices and the
other information provided to the agency about the asset
portfolio.
Overall, and together with any assumptions referred to above,
Fitch's assessment of the information relied upon for the agency's
rating analysis, according to its applicable rating methodologies,
indicates that it is adequately reliable.
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.
RANTARNA PTY: First Creditors' Meeting Set for April 14
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Rantarna Pty
Ltd will be held on April 14, 2025 at 12:00 p.m. at the offices of
HoganSprowles at Level 1, Suite 1, 44 Pitt Street in Sydney and via
virtual meeting.
Michael Hogan of HoganSprowles was appointed as administrator of
the company on April 3, 2025.
REACON AUSTRALIA: Placed in Administration
------------------------------------------
Print21 reports that Reacon Australia and sister company
mmw3degrees are in administration, and looking at a restructure to
take the print and mailing businesses forward.
According to Print21, the administrator is currently running Reacon
Australia and mmw3degrees as trading concerns, and has been
presented with a consolidation plan and a DOCA (Deed of Company
Arrangement), which includes a promise of a capital injection and
operational expertise.
CEO of the Sydney-based businesses is Jahangir Khan, who is CEO of
Reacon Group. Print21 understands Reacon Group is in the process of
being acquired by the owner of a Sydney-based print company.
Print21 also understands that Fujifilm was paid on April 4 for the
JetPress 1160CF high volume inkjet web press it installed shortly
after drupa last year, and for a cutsheet Revoria.
Print21 notes that the DOCA enables a company to come to a mutual
understanding with its creditors to pay them back so many cents in
the dollar over an agreed time frame, while it carries on trading,
usually in a slimmed-down form. It is not without controversy, as
it effectively enables a business to shed much of its debt and
carry on in the same market, while competitors complain bitterly
that they are having to trade while paying 100 per cent of their
tax, super, rent and supplier invoices.
Reacon acquired mmw3degrees, the specialist direct mail and
data-driven communications service provider, when was suddenly
placed into voluntary administration at Christmas two years ago,
just six weeks after Jennifer Slarke, the ex-wife of the late owner
Laurie Griffiths, became company director. Griffiths passed away 18
months prior. The company had 40-50 staff at the time.
Reacon is part of the same Bridgestone Holdings group that bought
Theo Pettaras' Digitalpress in September 2020, and then merged its
Indigo and Copiworld business with it into a North Sydney
location.
At drupa last year, Reacon Group ordered a Fujifilm JetPress 1160CF
for its Australian operations, becoming the first printer in
Australia to take the 160 metres-a-minute inkjet colour press,
Print21 recalls. The deal was signed with Fujifilm Business
Innovation Australia for Reacon business mmw3degrees, with the
press set to be delivered virtually as soon as drupa was over.
The first meeting of creditors is on April 22 at 1:00 p.m. The
administrator is Cathro and Partners.
TWO SHORT: First Creditors' Meeting Set for April 15
----------------------------------------------------
A first meeting of the creditors in the proceedings of Two Short
Dogs Pty Ltd will be held on April 15, 2025 at 3:00 p.m. via
virtually via Microsoft Teams.
Matthew Jess of Worrells was appointed as administrator of the
company on April 4, 2025.
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C H I N A
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CHINA EVERGRANDE: Liquidators Sue Hong Kong Golf Club
-----------------------------------------------------
Bloomberg News reports that China Evergrande Group's liquidators
are suing Hong Kong Golf Club as they broaden their efforts to
recover more money from the defaulted developer's assets.
Liquidators said the club's rules may affect their ability to
fulfill their duties to maximise recoveries for Evergrande's
creditors, according to a writ seen by Bloomberg News that was
filed in Hong Kong's High Court on March 31. The lawsuit relates to
the builder's membership in the city's prestigious golf club and
rules governing transfers of membership, the writ showed.
The liquidators have considered selling some of Evergrande's
private club memberships including in the golf club, as a way to
claw back funds, people familiar with the matter said. But the
club's rules could eat into any money recovered, the argument goes,
Bloomberg relays.
The contention is that the club is asking to charge the transfer
fees twice, according to one of the people familiar with the matter
- one would be for the possible transfer from the liquidators to
any new buyer, and the other for when it changed hands from
Evergrande to the liquidators.
A membership transfer is deemed to have occurred when the owner is
subject to any winding-up petition or when a court issues a
liquidation order, according to the club’s rules seen by
Bloomberg News.
That then could incur transfer fees that club rules show could run
as high as a quarter of the cost of membership. Memberships can
cost up to HK$18 million (US$2.3 million) in the secondary market,
according to a membership services website.
According to Bloomberg, liquidators have cast a wide net in their
search for funds, targeting among other things a collection of art
work that includes pieces by Monet as well as luxury cars. So far
creditors have been left empty handed, with recovered assets being
used to support the winding-up procedure and a handful of legal
battles.
Liquidators have so far taken control of more than 100 direct or
indirect subsidiaries in the group, Bloomberg reported earlier.
They have wound-up two key units, CEG Holdings BVI Ltd and Tianji
Holding Ltd, and taken control of Evergrande Health Industry
Holdings Ltd, which owns more than 50% of the company's new energy
vehicle business.
About China Evergrande
China Evergrande Group is an integrated residential property
developer. The Company, through its subsidiaries, operates in
property development, investment, management, finance, internet,
health, culture, and tourism markets.
China Evergrande Group, the second largest real estate developer in
China, and certain of its affiliates sought creditor protection in
the United States under Chapter 15 of the Bankruptcy Code (Bankr.
S.D.N.Y. Lead Case No. 23-11332) on Aug. 17, 2023.
Evergrande, widely known as the most leveraged company in the
world, and its affiliates are asking the U.S. Bankruptcy Court for
the Southern District of New York for recognition of foreign
proceedings as "foreign main" proceeding under Chapter 15.
Evergrande is in the midst of a highly complex restructuring of
around $20 billion in offshore debt. In total, the Company has
more than $300 billion in liabilities.
Evergrande is incorporated in the Cayman Islands as an exempted
company with limited liability, with its principal place of
business located at 15th Floor, YF Life Centre, 38 Gloucester Road,
Wanchai, Hong Kong. It is subject to a restructuring proceeding
entitled In the Matter of China Evergrande Group, concerning a
scheme of arrangement between Evergrande and certain Scheme
Creditors pursuant to the relevant provisions of the Hong Kong
Companies Ordinance (Chapter 622 of the Laws of Hong Kong),
currently pending before the High Court of Hong Kong (Case Number
HCMP 1091/2023.
Affiliate Tianji Holding Limited is incorporated in Hong Kong as a
limited liability company, with its principal place of business
located at 17th Floor, One Island East, Taikoo Place, 18 Westlands
Road, Quarry Bay, Hong Kong. Tianji is subject to a restructuring
proceeding entitled In the Matter of Tianji Holding Limited,
concerning a scheme of arrangement between Tianji and certain
Scheme Creditors, pursuant to the relevant provisions of the Hong
Kong Companies Ordinance and currently pending before the Hong Kong
Court (Case Number HCMP 1090/2023).
Affiliate Scenery Journey Limited is incorporated in the British
Virgin Islands as a limited liability company, with its principal
place of business located at 2nd Floor Water's Edge Building,
Wickham's Cay II, Road Town, Tortola, BVI. Scenery Journey is
subject to a restructuring proceeding entitled In the Matter of
Scenery Journey Limited, concerning a scheme of arrangement between
Scenery Journey and certain Scheme Creditors, pursuant to section
179A of the BVI Business Companies Act, 2004, and currently pending
before the High Court of the Eastern Caribbean Supreme Court (Case
Number BVIHCOM 2023/0076).
U.S. Bankruptcy Judge Michael E Wiles presides over the Chapter 15
proceedings.
Sidley Austin is the Hong Kong Counsel to Evergrande and Tianji.
Maples BVI is the British Virgin Island Counsel to Scenery
Journey.
On Jan. 29, 2024, a Hong Kong court ordered the liquidation of
China Evergrande Group.
COUNTRY GARDEN: Creditor OKs Restructuring of at Least 8 Bonds
--------------------------------------------------------------
South China Morning Post reports that restructuring plans covering
at least eight bonds issued by Country Garden received approval
from creditors, marking another victory for the beleaguered
developer in its quest to trim its debt, as China's property market
remains in the doldrums.
The Post, citing state-owned media outlet The Paper, relates that
the company, based in Foshan, Guangdong province, is moving forward
with efforts to restructure CNY12.4 billion (US$1.7 billion) in
debt as part of a plan to reorganise nine bonds with a total value
of CNY13.5 billion.
For two of the bonds, which previously required a 10 per cent
payment on the principal in March, payment has been extended to
September, the Post says. The remaining bonds will be granted a
grace period of 60 trading days for the repayment of both principal
and interest, according to local media, adding that the developer
currently has a total of CNY20.5 billion in outstanding onshore
bonds.
The Post relates that the latest development was another victory
for Country Garden, once China's largest home builder by sales. The
firm's fortunes started to sour in late 2020 when Beijing
implemented its "three red lines" policy to deflate a housing
bubble and curb excessive borrowing among developers.
Last week, the company said its 2024 loss attributable to
shareholders narrowed to CNY32.8 billion from a whopping CNY178
billion loss a year earlier, the Post discloses. The 2023 loss was
mainly due to steep write-offs on properties that were completed or
under development, the company said in its annual report.
In another debt-management move, Country Garden in January unveiled
the terms of a proposal to restructure its offshore debt, which
stood at US$16.4 billion at the end of 2023, the Post notes. The
plan is expected to help the developer cut its debt by US$11.6
billion, extend maturities by up to 11.5 years, while reducing its
weighted average borrowing cost to 2 per cent from 6 per cent.
Country Garden is seeking to reach an agreement with its offshore
creditors in the first half of this year, adds the Post.
About Country Garden Holdings
Country Garden Holdings Company Limited (HKEX:2007), an investment
holding company, invests, develops, and constructs real estate
properties primarily in Mainland China. The company operates in two
segments, Property Development and Construction. It develops
residential projects, such as townhouses and condominiums; and car
parks and retail shops. The company also develops, operates, and
manages hotels. In addition, it researches and develops robots;
sells electronic hardware and food; and provides interior
decoration, agriculture, landscape design, investment and
management consulting, cultural activity planning, and real estate
consulting services.
On Feb. 27, 2024, Kingboard Holdings-backed money lender Ever
Credit filed a winding-up petition against Country Garden to the
Hong Kong High Court for non-payment of a US$205 million loan.
Country Garden hired Kroll to carry out a liquidation analysis in
March 2024. Kroll, the New York-headquartered financial advisory
firm, is expected to conduct an independent business review of
Country Garden before projecting a recovery rate for the
developer's creditors under a liquidation scenario, according to
Reuters.
The developer defaulted on US$11 billion of offshore bonds in 2023
and is in the process of an offshore debt restructuring.
COUNTRY GARDEN: Sales Slump Persists as Revival Proves Elusive
--------------------------------------------------------------
Bloomberg News reports that Country Garden Holdings' sales slide
continued in March, with the developer faring worse than the
broader China housing sector.
The Foshan-based company's monthly contracted sales dropped 25.3
per cent from a year earlier to CNY3.2 billion, Bloomberg
calculations based on corporate filings show.
While that was an improvement from a 38 per cent year-on-year slump
in February, the decline was from an already low base, and was much
steeper than the country's top 100 developers' 11 per cent drop in
new home sales in March. Country Garden's first-quarter sales
totalled just CNY7.8 billion, a far cry from its heyday, Bloomberg
discloses.
Weak domestic demand and a fragile job market continue to weigh on
China's housing market, which is now in its fourth year of decline,
Bloomberg notes. People remain wary about developers' ability to
finish projects on time, leading new-home sales to drop in March
after a brief period of stabilising.
Bloomberg says the outlook has been further clouded by a dramatic
escalation in the trade war between the US and China, which has
sent Chinese equities plummeting and could deal another blow to
consumer confidence in the world's second-largest economy.
Country Garden has been counting on a turnaround in sales while the
33-year-old developer continues lengthy restructuring talks more
than a year after defaulting on its debt, according to Bloomberg.
Bloomberg relates that the company said that challenges in ensuring
housing delivery are "complex", according to a statement citing a
March management meeting.
In January, the company told a Hong Kong court that it expected to
reach an agreement with creditors by the end of February, but it
ended up missing the self-imposed target date.
Country Garden has again engaged Houlihan Lokey and China
International Capital Corporation as financial advisers on its
offshore debt restructuring, Bloomberg News recently reported,
renewing ties with the two firms as it seeks to build creditor
support for its debt plan.
The developer's contracted sales for this year could test the 2012
to 2013 lows of 48 billion to 106 billion yuan, Bloomberg
Intelligence analysts Daniel Fan and Hui Yen Tay wrote in a January
note.
While Country Garden recorded steep write-offs for 2023 and laid
the foundation for a smaller loss in 2024 and 2025, further
impairment this year is possible as it has only written down about
11 per cent of its inventory, they added.
About Country Garden Holdings
Country Garden Holdings Company Limited (HKEX:2007), an investment
holding company, invests, develops, and constructs real estate
properties primarily in Mainland China. The company operates in two
segments, Property Development and Construction. It develops
residential projects, such as townhouses and condominiums; and car
parks and retail shops. The company also develops, operates, and
manages hotels. In addition, it researches and develops robots;
sells electronic hardware and food; and provides interior
decoration, agriculture, landscape design, investment and
management consulting, cultural activity planning, and real estate
consulting services.
On Feb. 27, 2024, Kingboard Holdings-backed money lender Ever
Credit filed a winding-up petition against Country Garden to the
Hong Kong High Court for non-payment of a US$205 million loan.
Country Garden hired Kroll to carry out a liquidation analysis in
March 2024. Kroll, the New York-headquartered financial advisory
firm, is expected to conduct an independent business review of
Country Garden before projecting a recovery rate for the
developer's creditors under a liquidation scenario, according to
Reuters.
The developer defaulted on US$11 billion of offshore bonds in 2023
and is in the process of an offshore debt restructuring.
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I N D I A
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AGRO INDUS: ICRA Reaffirms B+ Rating on INR10cr LT Loan
-------------------------------------------------------
ICRA has reaffirmed ratings on certain bank facilities of Agro
Indus Credits Limited (AICL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 10.00 [ICRA]B+ (Stable); reaffirmed
Fund Based-
Cash Credit
Long-term 9.00 [ICRA]B+ (Stable); reaffirmed
fund based–
Working capital
term loan
Short-term
fund based-
Overdraft 5.00 [ICRA]A4; reaffirmed
Rationale
The ratings factor in the track record of AICL in the gold loan
business and its low leverage, with a gearing of 0.7x as on
September 30, 2024. However, the ratings remain constrained by the
company's modest scale of operations, its legacy unresolved asset
quality issues and the risks associated with its geographically
concentrated operations. AICL has limited external borrowings at
present and it is crucial for it to strengthen its funding profile,
going forward, as the business expands.
AICL's delinquencies remained elevated in 9M FY2025, though the
same improved slightly with the overall 90+ days past due(dpd)
reducing to 20.1% as of September 2024 (29.6% as of March 2024)
from 22.7% as of September 2023. This was supported by the steady
scale-up of gold loans in the loan portfolio, which have relatively
lower delinquencies (90+ dpd of 5.3% as of September 2024
vis-à-vis 12.3% as of March 2024 and 0.4% as of September 2023).
While the company has limited credit losses in its gold loan
portfolio, delinquencies have fluctuated as it provided more time
to the borrowers to redeem their gold in view of the sufficient
loan-to-value (LTV) being maintained, given the trend of increasing
gold prices. The entire non-gold book was in the 180+ dpd bucket
and the extent of recovery from these loans would be monitorable.
Key rating drivers and their description
Credit strengths
* Track record in gold loan and other retail businesses: AICL has a
track record of more than 25 years in retail lending businesses,
including gold, vehicle and mortgage loans. Its senior management
consists of personnel with an average experience of more than a
decade in the banking sector. The company's Chief Executive
Officer, Mr. Joseph P Abraham, has over 23 years of experience in
non-banking financial services and capital markets. AICL has been
promoted by Mr. Muraleedharan Kesavan, the Chairman and Managing
Director of the Abu Dhabi-based SFC Group of Companies, and his
spouse; together, they hold a 78.6% stake in the company. The
promoters have been infusing equity over the last few years (INR5.0
crore during FY2022-FY2023), extended unsecured loans and have also
subscribed to the majority of the market instruments issued by the
company.
* Moderate capitalisation profile: AICL had a net worth of INR63.1
crore and a gearing of 0.7 times as of September 2024. While it has
maintained relatively low leverage in the past, a sizeable portion
of its loan portfolio comprised non-performing advances (NPAs),
resulting in subdued solvency metrics. AICL's net NPA/net worth was
18.1% as of September 2024 (15.6% as on March 31, 2024). The
provision coverage ratio was 40.9% as of September 2024. Given that
it is yet to make credit provisioning for a sizeable portion of the
legacy NPAs, the extent of recovery from these NPAs would determine
the incremental impact on the company's net worth and
capitalisation profile.
Credit challenges
* Modest scale and regionally concentrated operations: AICL's
portfolio improved to INR110.7 crore as of September 2024 from
INR92.4 crore as on March 31, 2024, supported by the significant
growth in its gold loan portfolio. Given its modest scale, the
company's portfolio remains concentrated in two states with 26
branches in Kerala and 36 branches in Tamil Nadu. The portfolio
consisted of gold loans (84%), mortgage loans (13%) and vehicle
loans (2%) as on September 30, 2024. Going forward, the share of
gold loans in the overall portfolio is expected to increase as
disbursements for mortgage loans and vehicle loans were stopped in
the past few years.
* Subdued asset quality indicators due to legacy issues;
profitability to remain under pressure despite recent improvement:
AICL's delinquencies remained elevated in 9M FY2025, though the
same improved slightly with the overall 90+ dpd reducing to 20.1%
as of September 2024 (29.6% as of March 2024) from 22.7% as of
September 2023. The improvement was supported by the steady
scale-up of gold loans in the loan portfolio, which have relatively
lower delinquencies (90+ dpd of 5.3% as of September 2024
vis-à-vis 12.3% as of March 2024 and 0.4% as of September 2023).
While AICL has limited credit losses from its gold loan portfolio,
delinquencies have fluctuated as it provided more time to the
borrowers to redeem their gold in view of the sufficient LTV being
maintained, given the trend of increasing gold prices. The entire
non-gold book was in the 180+ dpd bucket and the extent of recovery
from these loans would be monitorable. The company's gross NPAs
(150+ dpd basis) stood at 17.6% as on September 30, 2024 and 19.1%
as on March 31, 2024 due to limited collections in the mortgage and
vehicle loan segments. The ability to achieve recoveries from
mortgage and vehicle loans would be a key monitorable in the near
to medium term.
AICL's return on assets improved to 2.4% (provisional) in H1 FY2025
from 1.3% in FY2024 (0.1% in FY2023). This was due to the increase
in the net interest margin to 12.9% in H1 FY2025 and 13.4% in
FY2024 (12.1% in FY2023) and the moderation in credit costs to 0.4%
in H1 FY2025 from 1.8% in FY2024 (1.7% in FY2023). However, the
margin remains below the pre-Covid 19 pandemic level mainly because
of stiff competition in the gold loan segment. Further, the
provision cover on the company's NPAs1 remained moderate at 40.9%
as of September 2024 (45.0% as of March 2024 and 30.7% as of March
2023). The extent of recoveries from the legacy portfolio would
determine the incremental net credit losses, which the company
would have to absorb, going forward.
Liquidity position: Adequate
AICL had cash and undrawn bank lines of INR6.7 crore as on February
29, 2025, with repayments of INR1.8 crore of working capital demand
loans (WCDLs) and non-convertible debentures (NCDs) due over March
2025 to May 2025. It currently has working capital limits of INR15
crore with three banks, apart from a WCDL originally sanctioned for
INR10 crore. AICL's funding is largely from banks (55% of the total
borrowings as of September 2024), followed by unsecured loans from
directors and relatives (24%) and NCDs and sub-debt (20%).
ICRA notes that around 70% of the gold loans are rolled over on the
respective due dates, following the receipt of interest accrued,
thereby limiting the inflows from this segment. Also, collections
from the non-gold loan segment are expected to remain limited as
all the loans are in the 180+ dpd bucket.
Rating sensitivities
Positive factors – Profitable business growth and improvement in
the asset quality with 90+ dpd of less than 5.0%, while maintaining
a prudent capital structure, would have a positive impact on the
ratings.
Negative factors – AICL's ratings could be negatively impacted in
case of a significant weakening in the liquidity profile or further
deterioration in the asset quality.
Agro Indus Credits Limited (AICL) is a non-deposit taking
non-banking financial company (NBFC) incorporated in January 1997.
It was acquired by the current promoters, Mr. Muraleedharan
Kesavan, Mrs. Beena Muraleedharan and others, in 2010. At present,
AICL offers gold loans while mortgage loans and vehicle loans were
sanctioned earlier. It operates mainly in Tamil Nadu and Kerala
through its branches, with its head office in Kochi (Kerala). The
company has 62 branches in these two states, including 36 in Tamil
Nadu. Its total portfolio outstanding was INR110.7 crore and
INR92.4 crore as of September 2024 and
March 2024, respectively.
AICL reported a net profit of INR1.3 crore (provisional) on a total
asset base of INR116.5 crore in H1 FY2025 compared to INR1.2 crore
and INR98.7 crore, respectively, in FY2024.
AJIT KUMAR: ICRA Keeps B Debt Ratings in Not Cooperating Category
-----------------------------------------------------------------
ICRA has kept the long-term and short-term ratings of Ajit Kumar
Swain in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]B (Stable)/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 2.00 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Short Term- 5.00 [ICRA]A4; ISSUER NOT
Non-Fund COOPERATING; Rating continues
Based-Others to remain under 'Issuer Not
Cooperating' category
Long Term- 1.00 [ICRA]B (Stable); ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under the 'Issuer Not
Cooperating' category
Short Term- 2.00 [ICRA]A4; ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under the 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with AKS, ICRA has been trying to seek information from the entity
to monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non cooperative. In the absence of the requisite
information and in line with the aforesaid policy of ICRA, the
rating has been moved to the "Issuer Not Cooperating" category. The
rating is based on the best available information.
Incorporated in 2009 as a proprietorship firm, the entity commenced
operations in the second quarter of FY2015. Ajit Kumar Swain (AKS)
is a civil constructor involved in irrigation canals – earthwork,
rehabilitation etc, and road works in Odisha. AKS is a registered
Special Class Contractor with the Public Works Department (PWD),
Odisha, and this allows the entity to bid for large contracts
floated by the department. The proprietor of the firm is also
engaged in construction activities through a group firm - M S
Infraengineers Pvt Ltd (MSIPL), of which he is the Chief Executing
Officer.
AL-FALAH FROZEN: CARE Keeps D Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of AL-Falah
Frozen Foods (AFF) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated March 22, 2024,
placed the rating(s) of AFF under the 'issuer non-cooperating'
category as AFF had failed to provide information for monitoring of
the rating as agreed to in its Rating Agreement. AFF continues to
be non-cooperative despite repeated requests for submission of
information through emails dated February 5, 2025, February 15,
2025 and February 25, 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
Uttar Pradesh based AL-Falah Frozen Foods (AFF) was established in
the year 2005 as a partnership firm. The firm is currently being
managed by Mr. Shakeel Ahmad, Mohammad Sameer and Mr. Tashkil
Ahmed. The firm operates as an integrated cold chain and
preservation facility and is engaged in the processing and
supplying of frozen buffalo meat. The processing facility of the
firm is located at Moradabad, Uttar Pradesh and has its own
slaughterhouse with a capacity to process 500 buffalo per day.
However, they have permission to process 150 buffalo per day as on
March 31, 2022. The firm is having three associate concerns namely;
"AL-Falah Cold Storage" (established in 2016) operates as cold
storage; "AL-Falah Food Exports" (established in 2015) engaged in
the trading of processed meat and "AL-Falah Foods Private Limited"
(incorporated in 2019) engaged in the export of processed meat.
ALMIGHTY AGROTECH: CARE Keeps B- Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Almighty
Agrotech Private Limited (AAPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.36 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 February 7,
2024, placed the rating(s) of AAPL under the 'issuer
non-cooperating' category as AAPL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
AAPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated December 23, 2024,
January 2, 2025, January 12, 2025 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Stable
Rajkot- Gujarat based AAPL was established as a partnership firm in
1977 by Bhalani family which has been subsequently converted to
private limited company in the year 2007. AAPL is managed by Mr.
Maheshkumar Bhalani, Mr. Jamanbhai Bhalani, Mr. Dharmeshkumar
Bhalani, Mr.Pareshkumar Bhalani, Mrs. Sheetalben Bhalani, Mrs.
Hetalben Bhalani and Mrs. Chandrikaben Bhalani. AAPL is engaged in
the business of manufacturing of Plant Protection Equipments since
its inception. AAPL is selling its products under brand name of
'Alap' and 'Milap'. The manufacturing facility is located at Metoda
G.I.D.C. with an area of 12,000 Sq. Mt. Land and installed capacity
of 450,000 agricultural sprayers. AAPL currently possess in-house
facilities for Blow Molding, Fabrication, Heat Treatment, Coating,
Welding and Brazing, etc. Also have in-house inspection and testing
facilities as per I.S.I. standards.
ALPINE PANELS: ICRA Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has kept the long-term and Short-Term ratings of Alpine Panels
Pvt. Ltd (APPL) in the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 0.75 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Short-term 10.00 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Rating continues to remain under
Others 'Issuer Not Cooperating'
Long-term/ 3.25 [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 APPL, 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.
Alpine Panels Private Limited (APPL) was incorporated in 2005 and
is engaged in the manufacturing of veneer and cutting and
processing of timber (sawn timber and wooden plates). These are
primarily used as the raw material in the manufacturing of plywood.
The manufacturing unit is located in Visakahapatnam with an
installed capacity of 24,000 Cubic meters per annum. The company is
led by Mr. Sudama Seth and Mr. Deepak Saxena who have nearly two
decades of experience in the timber and plywood industry. The
company is part of the Deccan Group, which has a history of about
two decades in the plywood business.
AMBIKA MARKETING: CARE Lowers Rating on INR14.46cr LT Loan to B
---------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Ambika Marketing (AM), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 14.46 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Downgraded from CARE B+; Stable
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated March 7, 2024,
placed the rating(s) of AM under the 'issuer non-cooperating'
category as AM had failed to provide information for monitoring of
the rating as agreed to in its Rating Agreement. AM continues to be
non-cooperative despite repeated requests for submission of
information through e-mails dated January 21, 2025, January 31,
2025, February 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 ratings assigned to the bank facilities of AM have been revised
on account of non-availability of requisite information.
Analytical approach: Standalone revised from Combined For arriving
at the ratings, CARE has considered a combined view of – Ambika
Marketing (AM), Ambika Pulses (AP) and Raghuratna Agro Industries
(RAI), as all these entities are engaged in the same line of
business, have common promoters, and have operational and financial
linkages. However, updated information is not available to
ascertain financial linkages that warrant a continuation of
combined approach.
Outlook: Stable
Formed in 2012, Ambika Marketing (AM) is a proprietorship firm
managed by Mr. Pannalal Kalantri. It is a part of Ambika group and
is engaged in processing of Chana dal, Toor dal and packaging for
Tata Sampanna.
AMBIKA PULSES: CARE Lowers Rating on INR15cr LT Loan to B
---------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Ambika Pulses (AP), 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 category and
Downgraded from CARE B+; Stable
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated March 7, 2024,
placed the rating(s) of AP under the 'issuer non-cooperating'
category as AP had failed to provide information for monitoring of
the rating as agreed to in its Rating Agreement. AP continues to be
non-cooperative despite repeated requests for submission of
information through e-mails dated January 21, 2025, January 31,
2025 and February 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 ratings assigned to the bank facilities of AP have been revised
on account of non-availability of requisite information.
Analytical approach: Standalone revised from Combined
For arriving at the ratings, CARE has considered a combined view of
– Ambika Marketing (AM), Ambika Pulses (AP) and Raghuratna Agro
Industries (RAI), as all these entities are engaged in the same
line of business, have common promoters, and have operational and
financial linkages. However, updated information is not available
to ascertain financial linkages that warrant a continuation of
combined approach.
Outlook: Stable
Formed in 2001, Ambika Pulses (AP) is a proprietorship firm managed
by Mr. Shrikanta Kalantri. It is a part of Ambika group and is
engaged in sorting and grading of pulses (toor and chana). The
processing unit is situated in Latur, Maharashtra.
BALAJI CONSTRUCTIONS: ICRA Keeps B+ Ratings in Not Cooperating
--------------------------------------------------------------
ICRA has kept the long-term and Short-Term ratings of Sri Balaji
Constructions (SBC) in the 'Issuer Not Cooperating' category. The
rating is denoted as [ICRA]B+(Stable); ISSUER NOT COOPERATING
/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 3.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Short Term- 6.30 [ICRA]A4; ISSUER NOT
Non-Fund COOPERATING; Rating continues
Based-Others to remain under 'Issuer Not
Cooperating' category
Long Term/ 0.70 [ICRA]B+(Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain
under issuer not cooperating
Category
As part of its process and in accordance with its rating agreement
with SBC, ICRA has been trying to seek information from the entity
to monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of the requisite
information and in line with the aforesaid policy of ICRA, the
rating has been moved to the "Issuer Not Cooperating" category. The
rating is based on the best available information.
Sri Balaji Constructions (SBC) was established in 1994 by Mr. Kodur
Purandhar Reddy. SBC is in the business of construction and
maintenance of roads, under bridges, tunnels and construction of
canals and irrigation tanks for government departments. The firm
primarily operates in Nellore district of Andhra Pradesh and is a
class-I contractor executing projects for SC Railway, I&CAD
Department of Andhra Pradesh etc.
C.M. ABDUL: CARE Reaffirms B+ Rating on INR0.55cr LT Loan
---------------------------------------------------------
CARE Ratings has reaffirmed ratings on certain bank facilities of
C.M. Abdul Khader (CMAK), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term bank 0.55 CARE B+; Stable Rating removed
from ISSUER NOT COOPERATING
category and Reaffirmed
Short Term
Bank Facilities 45.78 CARE A4 Rating removed from
ISSUER NOT COOPERATING
category and Reaffirmed
Rationale and key rating drivers
CARE Ratings Limited (CARE Ratings) had previously rated the bank
facilities of CMAK as 'ISSUER NOT COOPERATING' since it had not
paid the surveillance fees for the rating exercise agreed to in its
Rating Agreement. The firm has now cooperated for undertaking the
review.
The ratings assigned to the bank facilities of CMAK are constrained
by small scale of operations, sole proprietorship nature of the
business, geographically concentrated operations, elongated working
capital cycle and highly competitive nature of the industry. The
ratings however derive strength from the long track record of the
firm, healthy profitability margins and vast experience of the
promoter in the business.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Ability to scale up operations with total income above INR50
crores while maintaining PBILDT margin above 15% on sustained
basis.
* Improve capital structure with overall gearing below 2x.
Negative factors
* Any delay in execution of orders leading to decline in income
below INR20 crore on sustained basis.
Analytical approach: Standalone
Outlook: Stable
The 'stable' outlook reflects the firm is expected to sustain its
operational performance with revenue visibility from existing
orders and benefit from established relationship with clients.
Detailed description of key rating drivers:
Key weaknesses
* Small scale of operations with geographically concentrated
operations: The firm, despite being in operation for over 3 decades
has small scale of operations marked by income of INR 20.83 crore
in FY24 (refers to the period April 01 to March 31), as against
INR34.90 crores in FY23. Further, the firm has booked revenue of
INR11.80 crore in 11mFY25 (refers to the period April 01 to
February 28). The order book stood at INR155.71 crores (7.48 times
of FY24 turnover) as on August 31, 2024. The projects that have
been taken up by the firm over the years are under the Jal Jeevan
Mission, concentrated in the northern districts of Kerala, mainly
Kannur and Kasaragod districts.
* Sole proprietorship nature of the business: CMAK's nature of
business is sole proprietorship, and it faces the inherent risk of
withdrawal of capital by the proprietor at the time of their
personal contingencies resulting in erosion of capital base leading
to adverse effect on capital structure. The proprietor made no
capital withdrawals during FY24 (PY: INR2.70 crore). With lower
networth base, the overall gearing stood weak at 8.02 (PY: 4.67) as
on March 31, 2024.
* Highly competitive nature of the industry: The sector in which
CMAK is operating has minimal entry barrier and it is filled with
fragmented and unorganised players. The orders are based upon the
tender mechanism and the bidder with least quote wins the order.
This type of market is prone to get affected by raw materials cost,
election period, government policies and face a stiff competition
from established companies with strong cash reserves.
Key strengths
* Long track record of the firm and vast experience of the promoter
in the business: CMAK was established in the year 1987 and has
track record of over three decades in construction field. Prior to
establishing the firm, its promoter Mr. C.M. Abdul Khader worked
under other major contractors to gain experience in the field. Mr.
C.M. Abdul Khader has experience of over four decades in
construction activities related to pipelines and water supply
systems.
* Comfortable profitability margins: CMAK has shown improvement in
PBILDT margin from 7.86% in FY23 to 18.13% in FY24 as the firm was
able to pass on the cost by invoking price escalation clauses. The
strong association with the suppliers helped the firm in limiting
the effects of the price hike to certain extent in the past.
Liquidity: Poor
The liquidity position of the firm is poor marked by tightly
matched accruals against repayment obligations of INR0.28 crores in
FY24. The cash balance as on as on March 31, 2024 stood low at INR
0.15 crores. The firm has been sanctioned fund based and
non-fund-based working capital limits and utilization stood at 95%
and 20% respectively for the past 12 months ended February 2025.
The current ratio of the firm stood at 1.12x as on March 31, 2024
(PY: 1.23x).
C.M. Abdul khader is a sole proprietorship firm started in the year
1987. The firm is situated in Kasaragod, Kerala and focuses on
construction activities related to water supply system like laying
of pipelines, installation of transmission mains etc. The firm has
an order book of INR 155.71 crores as of August 31, 2024.
DEKSON CASTINGS: CARE Assigns D Rating to INR10.17cr LT Loan
------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Dekson
Castings Limited (DCL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term bank 10.17 CARE D Assigned
Facilities
Long-term bank 17.83 CARE D Rating removed from
Facilities ISSUER NOT COOPERATING category
and Reaffirmed
Rationale and key rating drivers
The reaffirmation in the rating assigned to the bank facilities of
DCL takes into account continued delays in debt servicing due to
stretched liquidity position.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Establishing a track record of timely servicing of debt
obligations for a period of minimum 3 consecutive months
Negative factors
* Not Applicable
Analytical approach: Standalone
Outlook: Not applicable
Detailed description of key rating drivers:
Key weaknesses
* Delays in debt servicing: CARE Ratings Limited (CARE Ratings) has
observed delays in servicing of debt obligations of its funded
interest term loan rated by CARE Ratings, wherein the interest
payment for December 2024 was made with a delay of 5-7 days in
January 2025.
* Moderate scale of operations, thin profitability: Over the four
years ended FY24 (refers to April 1 to March 31), the TOI of the
company remined in the range of INR30-35 crore. PBILDT margin also
witnessed down trend which declined from 14.87% in FY20 to -1.50%
in FY24 (8.49% in FY23).
* Leveraged capital structure: The capital structure of the company
remained leveraged with overall gearing of 29.44x as on March 31,
2024 (PY: 5.98x) owing to increased reliance on external debt and
shrinking networth position due to losses reported in FY24. DCL's
outstanding loans have been restructured effective from July 2024.
Additionally, DCL had been sanctioned a Funded Interest Term Loan
(FITL) in July 2024, for which the monthly interest payment was to
be made starting August 2024.
Liquidity: Poor
The liquidity position is poor marked by full utilization of
working capital limits and low cash and bank balance.
Assumptions/Covenants: Not applicable
Dekson Castings Limited (DCL) was established in the year 1993 as a
proprietorship concern and was later reconstituted as a private
limited company in the year 2005 and later as a public limited
company in February, 2014. DCL is engaged in the manufacturing of
aluminium sand castings and gravity die castings (GDC) components
and caters mainly to the two- wheeler segment in the auto industry
as well as non-auto applications, viz, electrical energy. The
manufacturing unit of the company is located in Aurangabad.
DP JAIN: ICRA Lowers Rating on INR1173.02cr Term Loan to B+
-----------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of DP Jain
TOT Toll Road Pvt Ltd (DPJTRPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 1,173.02 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating downgraded
Term Loan from [ICRA]BB(Stable) ISSUER
NOT COOPERATING and continues
to remain under the 'Issuer
Not Cooperating' category
Rationale
The rating is downgrade because of lack of adequate information
regarding DPJTRPL performance and hence the uncertainty around its
credit risk. ICRA assesses whether the information available about
the entity is commensurate with its rating and reviews the same as
per its "Policy in respect of non-cooperation by a rated entity"
available at www.icra.in. 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 DPJTRPL, 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.
DP Jain TOT Toll Road Pvt Ltd (DPJTRPL) a Special Purpose Vehicle
(SPV) incorporated in May 2021 by D.P. Jain & Co. Infrastructure
Pvt Ltd (DPJ) for the Tolling, Operation, Maintenance & Transfer of
Palanpur - Radhanpur- Samkhiyali section of NH-27 (from KM 536.000
to KM 430.100) in the state of Gujarat under TOT mode with a
Concession Period of 20 Years from Appointed Date. The Project was
awarded to D P Jain & Co Infrastructure Private Limited with
highest Bid Concession Fee of INR1251 Crore. The Company has been
given the right to collect toll for the road during the period and
is required to carry out road development works as per the terms.
INDURE PRIVATE: ICRA Withdraws D Rating on INR1,400cr ST Loan
-------------------------------------------------------------
ICRA has withdrawn the ratings assigned to the bank facilities of
Indure Private Limited, at the request of the company and based on
the No Objection Certificate received from its bankers in
accordance with ICRA's policy on withdrawal. However, ICRA does
not have information to suggest that the credit risk has changed
since the time the rating was last reviewed. The Key Rating Drivers
and their description, Liquidity Position, Rating Sensitivities,
Key Financial Indicators have not been captured as the rated
instruments are being withdrawn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Short-term 1,400.00 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Withdrawn
Others
Long-term- 250.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Withdrawn
Cash Credit
The Indure Private Limited (IPL) is a Company under DESEIN- INDURE
Group of Companies and was promoted by late Mr. O. P. Gupta in
1970. The Company engages in undertaking Ash Handling Plant
contracts on turnkey basis involving designing, engineering,
manufacturing and installation & commissioning of Ash handling
systems. The Company also undertakes operation and maintenance for
Ash Handling Plants. IPL has two workshops/units one located at
Sahibabad (U.P.) and other at Sikandarabad (U.P.). Together these
units have a foundry, two induction furnaces with 2 tonne capacity
each, machine shops and fabrication shops (including fabrication
shops for large vessels.
K B D INDUSTRIES: ICRA Lowers Rating on INR0.75cr Loans to D
------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of KBD
Industries LLP (KBDILLP), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 53.25 [ICRA]D; ISSUER NOT COOPERATING;
Fund based downgraded from [ICRA]B+(Stable);
Cash Credit moved to "Issuer Not Cooperating"
category
Unallocated 0.75 [ICRA]D; ISSUER NOT COOPERATING;
Limits downgraded from [ICRA]B+(Stable);
moved to "Issuer Not Cooperating"
category
Rationale
On April 3, 2025, ICRA received confirmation from the lenders of
KBDILLP regarding irregularities in debt servicing on company's
borrowing facilities. The lenders indicated that there have been
delays in servicing of interest on the term loans since January
2025 largely owing to liquidity pressures emanating from cost and
time overruns faced by the 60 kilolitre per day grain-based
distillery project being set up by the firm.
As part of its process and in accordance with its rating agreement
with KBDILLP, 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 moved to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
Liquidity
The liquidity position is poor, reflected in the delays in debt
servicing owing to cost and time over-runs in the project being
implemented by the firm.
KBD Industries LLP (KBDILLP) was incorporated on February 26, 2021,
under the Limited Liability Partnership Act, 2008, for
manufacturing and selling ethanol and related products. The LLP is
setting up a 60-kilolitre-per-day (KLD) grain-based ethanol
distillery, mainly using broken rice and maize as the basic raw
material, at Khammam, Telangana.
KBK BIOTECH: ICRA Lowers Rating on INR75cr LT Loan to B+
--------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of KBK
Biotech Private Limited, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 75.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating downgraded
Cash Credit from [ICRA]BB(Stable) and
continues to remain under
'Issuer Not Cooperating'
category
Long Term- 60.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating downgraded
Term Loan from [ICRA]BB(Stable) and
continues to remain under
'Issuer Not Cooperating'
category
Long-term 124.47 [ICRA]B+(Stable); ISSUER NOT
fund-based- COOPERATING; Rating downgraded
Working capital from [ICRA]BB(Stable) and
demand loan continues to remain under
'Issuer Not Cooperating'
Category
Long-term (35.00) [ICRA]B+(Stable); ISSUER NOT
non-fund based- COOPERATING; Rating downgraded
Letter of credit from [ICRA]BB(Stable) and
continues to remain under
'Issuer Not Cooperating'
category
Short-term 1.00 [ICRA]A4 ISSUER NOT
non-fund based- COOPERATING; Rating continues
Bank guarantee remain under 'Issuer Not
Cooperating' category
Short-term (5.00) [ICRA]A4 ISSUER NOT
non-fund based- COOPERATING; Rating continues
Bank guarantee remain under 'Issuer Not
Cooperating' category
The rating downgrade is because of lack of adequate information
regarding KBK Biotech Private Limited performance and hence the
uncertainty around its credit risk. ICRA assesses whether the
information available about the entity is commensurate with its
rating and reviews the same as per its "Policy in respect of
non-cooperation by a rated entity" available at www.icra.in. 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 KBK Biotech 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 moved
to the "Issuer Not Cooperating" category. The rating is based on
the best available information.
KBK Biotech Private Limited, based out of Andhra Pradesh was
incorporated in 2015 and is engaged in the manufacturing of Extra
Neutral Alcohol (ENA), Impure Spirit (IS) and Distillers Dried/Wet
Grains with soluble (DDGS), Hand Sanitizers and Captive Power
Generation of 2.1 MW. During FY2016-17, the company acquired Milano
Spirits India Private Limited's (MSIPL) factory land, plant and
machinery along with all the operational licenses. The commercial
operations of the company were then started from July 2019. The
company is promoted by Kundula Balarama Krishna, Kundula Ganga
Bhavani, Kundula Murali Krishna and Kundula Suresh Kumar. From
March 2020, the company started manufacturing hand sanitizers. The
company is setting up a 397-kilo litres per day (KLPD) grain-based
distillery for ethanol manufacturing along with conversion of its
existing installed capacity of 88.5 KLPD for ENA manufacturing into
ethanol manufacturing in their existing plant at Chinnabrahmadevam
village in the East Godavari district of Andhra Pradesh and also
increasing its power generation capacity by 9.0MW.
NAGARKURNOOL MUNICIPALITY: ICRA Keeps B+ Rating in Not Coop.
------------------------------------------------------------
ICRA has kept the Long-term rating of Nagarkurnool Municipality in
the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Issuer rating - [ICRA]B+(Stable); ISSUER NOT
COOPERATING; Rating continues to
remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Nagarkurnool Municipality, ICRA has been trying to seek
information from the entity to monitor its performance. Further,
ICRA has been sending repeated reminders to the entity for payment
of surveillance fee that became due. Despite repeated requests by
ICRA, the entity's management has remained noncooperative. In the
absence of the requisite information and in line with the aforesaid
policy of ICRA, the rating has been moved to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
The NKM, being an ULB, provides civic services to the Nagarkurnool
town. Nagarkurnool is a new district formed in October 2016 in
Telangana. It was previously in Mahabubnagar district. The town is
located at a distance of around 134 km from the state capital,
Hyderabad. The major economic activity in the region is
agriculture. According to Census 2011, Nagarkurnool covers an area
of 5.74 sq. km. and has a population base of 26,801 of which 18% is
accounted by slum dwellers. The ULB is governed by the provisions
of the Telangana State Municipalities Act, (TSM Act) 1965. The
major functions of the NKM involve water supply, solid-waste
management, repair and maintenance of roads, street lighting and
amenities such as shopping stalls, community hall, playgrounds,
parks/gardens, among other civic amenities. The council of the NKM
comprising 20 Ward Councillors is headed by a Chairperson. The
executive wing is headed by a Municipal Commissioner, who is
appointed by the GoTS and is supported by the heads of various
departments.
PARAGON FINANCE: ICRA Withdraws B+ Issuer Rating
------------------------------------------------
ICRA has withdrawn the issuer rating outstanding for Paragon
Finance Limited at the request of the company. ICRA does not have
sufficient information to review the rating at present, hence, the
rating has been withdrawn in accordance with ICRA's policy on the
withdrawal of credit ratings. The key rating drivers, liquidity
position, rating sensitivities, and key financial indicators have
not been captured as the rated instrument has been withdrawn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Issuer Rating - [ICRA]B+ Rating Watch with
Developing Implications;
withdrawn
Paragon Finance Limited (Paragon), incorporated on July 21, 1986,
was promoted by the late Mr. Radhey Shyam Gupta in Kolkata with his
sons – Mr. Aloke Gupta and Mr. Manoj Gupta, as the first
directors. It is registered with the Reserve Bank of India (RBI) as
a non-deposit taking non-banking financial company (NBFC). It was
initially formed as Paragon Finance and Plywood Industries Ltd as
its Group entities were involved in the plywood and timber
business.
Paragon started as a commercial vehicle financing business as it
had already established good relations with truck drivers. It was
renamed Paragon Finance Limited in 1993 and went public {launched
its initial public offering (IPO)} in 1995. As on March 31, 2024,
the company reported assets under management (AUM) of INR13.6 crore
with a presence in Ranchi and Kolkata. Paragon is largely held by
the promotor group with a stake of ~71% as on December 31, 2024.
SCORPIOS APPARELS: ICRA Keeps B+ Debt Ratings in Not Cooperating
----------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Scorpios
Apparels Private Limited (SAPL) 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
---------- ----------- -------
Short Term- 11.00 [ICRA]A4 ISSUER NOT
Fund Based COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Long Term- 2.50 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Short Term- 5.00 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Long Term- 0.24 [ICRA]B+ (Stable) ISSUER NOT
Term loans COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Long Term/ 15.49 [ICRA]B+(Stable) ISSUER NOT
Short Term COOPERATING/[ICRA]A4 ISSUER
Unallocated NOT COOPERATING; Rating
continues to remain under
'Issuer Not Cooperating'
category
ICRA has been consistently following up with SAPL for obtaining the
monthly 'No Default Statement' and had also placed the ratings
under review due to non-submission of NDS in the months of January
2025 and February 2025. However, the entity's management has
remained non-cooperative. 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 cooperation
and in line with the aforesaid policy of ICRA, the ratings have
been continued to the
"Issuer Not Cooperating" category. The ratings are based on the
best available information.
ICRA is unable to validate whether SAPL has been able to meet its
debt servicing obligations in a timely manner. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating.
Incorporated in 1998, SAPL manufactures and exports women's
garments. It was initially set up as a manufacturing unit for Nitya
SARL, a France-based fashion house specialising in women's garments
(promoted by, Mr. Janak Datwani). The company deals only in woven
fabric and manufactures garments for women. SAPL has manufacturing
units at three plants – two in Okhla, Delhi and one in Faridabad,
Haryana. All the business processes like designing, procurement,
packaging, embroidery and dispatch are undertaken at its Faridabad
plant, whereas Okhla plants have only stitching and finishing
facilities.
SIMAR PORT: ICRA Withdraws B+ Rating on INR174cr LT Loan
--------------------------------------------------------
ICRA has withdrawn the ratings assigned to the bank facilities of
Simar Port Private Limited (SPPL) at the company's request and
based on the no dues certificate received from the banker, in
accordance with ICRA's policy on withdrawal of credit ratings. The
key rating drivers, 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- 174 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Withdrawn
In May 2007, the Gujarat Maritime Board (GMB) invited bids for the
development of a multi-user, multi-purpose all weather greenfield
port on a build, own, operate and transfer (BOOT) basis in Gujarat.
A consortium led by Shapoorji Pallonji and Company Private Limited,
along with Afcons Infrastructure Limited and Forbes and Company
Limited (all the three companies are part of SP Group), was
selected through a competitive bidding process to develop the port
at Chhara, Gujarat.
Simar Port Private Limited (SPPL) was subsequently incorporated on
July 17, 2008, as a separate SPV by the SP consortium for the
development of the port. On January 29, 2015, a concession
agreement was executed between the company and GMB for the
development of the Chhara Port. Earlier, the SP Ports Private
Limited (SPPPL), a wholly-owned subsidiary of Shapoorji Pallonji
Infrastructure Capital Company Private Limited (SPICCPL), held
99.99% equity shares of the company. SPPPL has now been merged with
SPICPL and the 99.99% stake is held by SPICCPL. The balance stake
is held by Afcons Infrastructure Limited and Forbes & Company
Limited equally. The scope of the project being executed by SPPL
was reduced, as discussed during the last surveillance exercise. At
present, the company will be executing project activities related
to the LNG project only i.e. setting up of the breakwater. As a
result, the project cost had been revised to ~INR1,957 crore from
INR4,085 crore earlier. Additionally, due to delays caused by the
acquisition of certain key land parcels, the CoD of the project has
been shifted to July 2024 from October 2023. Earlier, SPPL had
proposed to develop two terminals -a 15-MMTPA bulk terminal (8
MMTPA in first phase) and a 5-MMTPA LNG terminal -along with the
common infrastructure and backup areas at Chhara. SPPPL had entered
into a 50:50 JV with HPCL to set up a 5-MMTPA land-based LNG
storage and regasification terminal at the Chhara port through a
sub-concession (to be executed) with the company, however, SPPPL
sold its stake in the project at a consideration of INR397 crore in
March 2021.
UNITED BREWERIES: Court Cancels UB City Unit Sale, Orders Auction
-----------------------------------------------------------------
Deccan Herald reports that the Karnataka High Court has quashed the
sale of a 3,831.8 sq ft property by the UB Group on the third floor
of the Canberra Block in UB City to Brunton Developers in 2012.
Deccan Herald relates that the court has now directed the official
liquidator to take possession of the property and auction it in
accordance with the law.
"On taking possession of the said premises, the official liquidator
is directed to bring the said property for auction after taking
necessary permission from this court and complete the auction
process in accordance with the law by obtaining such
orders from this court as and when are necessary," Justice Suraj
Govindaraj said while dismissing the company application filed by
Brunton Developers, Bengaluru.
According to Deccan Herald, the petitioner had approached the High
Court seeking a directive for the issuance of a khata and other
necessary documents related to the property.
Deccan Herald says the petitioner claimed that United Breweries
(Holding) Limited, the company in liquidation, had conveyed the
property through a registered sale deed dated May 21, 2012, for
INR3 crore. United Breweries had stood as a guarantor for money
lent to liquor baron Vijay Mallya's Kingfisher Airlines.
The petitioner further claimed that the amount paid exceeded the
guidance value by nearly INR31 lakh, Deccan Herald relays.
The official liquidator filed objections, contending that since the
sale took place after the initiation of winding-up proceedings, it
was deemed a fraudulent transaction under Section 536 of the
Companies Act, 1956, according to Deccan Herald.
The court noted that the sale by the company in liquidation was
void under sections 536 and 537 of the Companies Act, 1956, as well
as sections 334 and 335 of the Companies Act, 2013. It also pointed
out that, according to a memo submitted by the official liquidator,
properties on other floors of the same building had been sold at a
higher price.
Deccan Herald adds that the court observed that the winding-up
petition was filed on March 26, 2012, while the sale occurred on
May 21, 2012. Since the winding-up order was passed on February 7,
2017, the purchaser's application, filed on June 30, 2023, was ex
facie barred by limitation under Article 113 of the Limitation Act,
1963.
"The sale price at which the subject property has been sold to the
applicant is not the market value at the time of the sale. The
valuation is much less than the value at which the developer sold
his share of the same unit under a contemporaneous document. The
measurements indicated also being completely different, the
transaction is not bona fide and has been structured in a way to
benefit a related party to the managing director of the company in
liquidation," the court, as cited by Deccan Herald, said.
United Breweries Holdings Ltd. is an Indian conglomerate company
headquartered in UB City, Bangalore in the state of Karnataka,
India. The Company operates an airline, bottles beverages,
manufactures fertilizers, and offers construction services. United
Breweries is India's largest producer of beer with a market share
of more than 50% by volume.
=====================
N E W Z E A L A N D
=====================
ALFRISTON DEVELOPMENT: Court to Hear Wind-Up Petition on May 9
--------------------------------------------------------------
A petition to wind up the operations of Alfriston Development 2022
Limited will be heard before the High Court at Auckland on May 9,
2025, at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Feb. 19, 2025.
The Petitioner's solicitor is:
Cloete Van Der Merwe
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
LOUVRE INNOVATIONS: Creditors' Proofs of Debt Due on May 20
-----------------------------------------------------------
Creditors of Louvre Innovations Limited are required to file their
proofs of debt by May 20, 2025, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on April 1, 2025.
The company's liquidators are:
Paul Thomas Manning
Thomas Lee Rodewald
C/- BDO Tauranga Limited
Level 1, The Hub
525 Cameron Road
PO Box 15660
Tauranga 3144
MB PONSONBY: Khov Jones Appointed as Receivers
----------------------------------------------
Steven Khov and Kieran Jones of Khov Jones on April 8, 2025, were
appointed as receivers and managers of MB Ponsonby Limited.
The receivers and managers may be reached at:
Steven Khov
Kieran Jones
Khov Jones Limited
PO Box 302261
North Harbour
Auckland 0751
NGA TAMARIKI: Court to Hear Wind-Up Petition on May 6
-----------------------------------------------------
A petition to wind up the operations of Nga Tamariki 60 Limited
will be heard before the High Court at Rotorua on May 6, 2025, at
10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Feb. 25, 2025.
The Petitioner's solicitor is:
Christina Anne Hunt
Inland Revenue, Legal Services
21 Home Straight
PO Box 432
Hamilton
ORACLE EUROPEAN: Grant Bruce Reynolds Appointed as Liquidator
-------------------------------------------------------------
Grant Bruce Reynolds of Reynolds & Associates on April 4, 2025, was
appointed as liquidator of Oracle European Services Limited.
The liquidator may be reached at:
Reynolds & Associates Limited
PO Box 259059
Botany
Auckland 2163
STAFF SERVICES: Is Insolvent, Creditors Owed NZD525,000
-------------------------------------------------------
The Timaru Herald reports that a Timaru recruitment company put
into liquidation a year ago is insolvent, with no funds left to pay
creditors owed NZD525,000.
Staff Services Limited, which provided labour hire services, was
established in October 2015 and was owned by sole shareholder and
director Leon Hobbs.
It was placed into liquidation on March 7, 2024 by way of
shareholder resolution, with liquidator Brenton Hunt, of Insolvency
Matters, appointed to oversee the process, The Timaru Herald
notes.
In his latest six-monthly report, released on April 4, Mr. Hunt
said a preferential creditor had been paid, but no distribution had
been made to any of the other creditors.
A statement of the accounts for the period shows NZD75,000 was paid
to the preferential creditor (IRD).
Mr. Hunt had received one claim from Inland Revenue for NZD424,935,
and four claims from unsecured creditors totalling NZD91,629, The
Timaru Herald discloses.
Unsecured creditors included ACC, 2 Degrees, Contact, Jeffery
Henderson and Nigel Gormack, IRD, Sidekick Accountants, Spark and
Yellow Design.
The money owed to IRD was for unpaid GST and PAYE.
At the time the company was placed into liquidation, Mr. Hunt said
Mr. Hobbs cited slowly reducing demand for labour, increasing
competition, the pressures of Covid-19 and lower margins as reasons
for falling behind in his tax obligations, The Timaru Herald
relays.
During the six-month reporting period to April 4, Mr. Hunt said he
had also collected the shareholders current account, held
discussions with the director and creditors and investigated the
trading history of the company and the director’s actions.
Mr. Hunt told The Timaru Herald he had looked into the director's
actions and found nothing to show there had been any breaches of
the Companies Act.
He said the director had tried different approaches to make the
business work, but the model didn't work.
He said he expected the liquidation would be completed within the
next 12 months.
Staff Services is linked to Pinnacle Recruitment Ltd, also owned by
Mr. Hobbs and incorporated in January 2024.
=================
S I N G A P O R E
=================
AKS TECH: Court to Hear Wind-Up Petition on April 11
----------------------------------------------------
A petition to wind up the operations of AKS Tech Pte. Ltd. will be
heard before the High Court of Singapore on April 11, 2025, at
10:00 a.m.
RHB Bank Berhad filed the petition against the company on March 18,
2025.
The Petitioner's solicitors are:
Messrs Harry Elias Partnership LLP
SGX Centre 2,
#17-01, 4 Shenton Way
Singapore 068807
IMPERIUM GOURMET: Court Enters Wind-Up Order
--------------------------------------------
The High Court of Singapore entered an order on March 28, 2025, to
wind up the operations of Imperium Gourmet Asia Pte. Ltd.
DBS Bank Ltd filed the petition against the company.
The company's liquidator is:
Gary Loh Weng Fatt
BDO Advisory Pte Ltd
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
KAARYAKA SINGAPORE: Court to Hear Wind-Up Petition on April 11
--------------------------------------------------------------
A petition to wind up the operations of Kaaryaka Singapore Pte.
Ltd. will be heard before the High Court of Singapore on April 11,
2025, at 10:00 a.m.
Sajnani Shah Natasha filed the petition against the company on Nov.
27, 2024.
The Petitioner's solicitors are:
August Law Corporation
12 Eu Tong Sen Street
#04-166, The Central
Singapore 059819
LIVFRESH Pte: Court Enters Wind-Up Order
----------------------------------------
The High Court of Singapore entered an order on March 28, 2025, to
wind up the operations of Livfresh Pte. Ltd.
DBS Bank Ltd filed the petition against the company.
The company's liquidator is:
Gary Loh Weng Fatt
BDO Advisory Pte Ltd
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
TRANSCENDENCE MANAGEMENT: Court Enters Wind-Up Order
----------------------------------------------------
The High Court of Singapore entered an order on March 28, 2025, to
wind up the operations of Transcendence Management Pte. Ltd.
The Bamboo Group Management II Pte. Ltd. filed the petition against
the company.
The company's liquidators are:
Mr. Lau Chin Huat
Mr. Yeo Boon Keong
c/o Technic Inter-Asia Pte Ltd
50 Havelock Road
#02-767, The Beo Crescent
Singapore 160050
=====================
S O U T H K O R E A
=====================
HOMEPLUS CO: Workers Demand Rehabilitation Plan to Protect Rights
-----------------------------------------------------------------
Chosun Biz reports that workers at Homeplus and partnering
companies undergoing corporate rehabilitation procedures (court
management) on April 8 launched a Joint Emergency Committee and
urged the establishment of a corporate rehabilitation plan to
ensure their right to survival. They argued that the corporate
rehabilitation plan should not include restructuring and store
sales.
According to the report, the Joint Emergency Committee held a press
conference in front of the main hall of the National Assembly in
Yeouido, Seoul, on April 8, and said, "MBK Partners (the major
shareholder) should take full responsibility for the corporate
rehabilitation of Homeplus and prepare a genuine corporate
rehabilitation plan to guarantee the survival rights of workers and
partnering companies."
Chosun Biz relates that the Joint Emergency Committee includes the
Mart Industry Union of the Korean Confederation of Trade Unions,
the Homeplus branch, as well as more than 10 political parties and
labor and civil society organizations. Among the political parties,
the Participatory Party, Basic Income Party, Social Democratic
Party, Labor Party, Green Party, and Justice Party participated.
Additionally, People's Solidarity for Participatory Democracy, the
Lawyers for a Democratic Society, Korean Progressive Network, the
Korean Federation of Micro Enterprises and Small Businessmen, and
the Cargo Union Seoul-Gyeonggi Headquarters also joined.
Chosun Biz says the Joint Emergency Committee demanded a thorough
investigation into the Homeplus situation and the establishment of
regulatory legislation to prevent the acquisition of corporations
by speculative capital. They requested the National Pension Service
and financial authorities to disclose excessive dividends and
investment return structures regarding MBK.
Ahn Soo-yong, head of the Homeplus branch of the Mart Union, said,
"While preparing the Homeplus rehabilitation plan, there is only
discussion of plans regarding creditors, and the actual plans for
field members are not being discussed at all," adding, "There must
be a plan that allows all 100,000 members to recover together,"
Chosun Biz relays.
Jang Jeong-hoon, head of the Cargo Union Seoul-Gyeonggi
Headquarters, said, "Every time store sales and closures continue,
we endure the pain of tightening our belts despite decreased
revenue from reduced cargo and the anxiety of not knowing when we
will be kicked out. Cargo workers have had to leave their
workplaces without any compensation or measures when the company,
facing difficulties, said they had to go. The asset sales and store
closure plans of Homeplus must be stopped."
Choi Dae-young, secretary of the online delivery department of the
Mart Union, said, "Contract drivers have taken out loans and
scraped together money from here and there to work with Homeplus,
investing tens of millions of won in buying cars and painting
logos," adding, "The corporate rehabilitation of Homeplus is
nothing less than pushing us to death." A contract driver refers to
a transportation operator who owns a commercial license plate after
obtaining a cargo transportation business license and has signed a
management consignment contract.
Kim Byeong-guk, chairman of the Homeplus Store Owners Association,
said, "The wish of everyone gathered here is the "normalization of
Homeplus," but if there is not a single person's will, it will be
impossible." He added, "(Chairman Kim Byeong-joo of MBK) should
stop the empty promises of personal fund contributions and
insincere rehabilitation plans and show actions for genuine
normalization that saves lives."
Chosun Biz adds that the Joint Emergency Committee is planning to
hold a "National Assembly" on the 1st of next month in front of the
D Tower in Gwanghwamun, Seoul, where 3,000 people are expected to
gather.
About Homeplus Co
Homeplus Co. operates discount store chain in South Korea. It
currently operates 126 stores nationwide.
Homeplus entered court-led rehabilitation process on March 4, 2025,
after a Seoul court approved the request by MBK Partners, the
private equity fund that owns the discount store chain.
The decision came after Korea Investors Service and Korea Ratings
Inc. downgraded the company's rating, citing the company's lack of
efforts to improve its financial health.
=============
V I E T N A M
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FORTUNE VIETNAM: Moody's Affirms 'B1' Deposit & Issuer Ratings
--------------------------------------------------------------
Moody's Ratings has affirmed the B1 local (LC) and foreign (FC)
currency long-term (LT) bank deposit and issuer ratings of Fortune
Vietnam Joint Stock Commercial Bank (LPBank), as well as the bank's
b2 Baseline Credit Assessment (BCA) and adjusted BCA.
Moody's have also affirmed LPBank's Ba3 LT FC and LC Counterparty
Risk Ratings (CRR) and Ba3(cr) LT Counterparty Risk Assessment
(CRA), NP short-term (ST) FC and LC CRR, ST FC and LC bank deposit
ratings, ST FC and LC issuer ratings and NP(cr) ST CRA.
The rating outlook on the LT bank deposit ratings and issuer
ratings for LPBank are stable.
RATINGS RATIONALE
The affirmation of LPBank's B1 ratings is driven by Moody's
expectations that the bank's stable capitalization and improved
profitability will provide adequate buffer against still elevated
asset risk and the bank's high reliance on market funds relative to
Moody's rated peers in Vietnam. The large import tariffs imposed by
the US (Aaa negative) on Vietnam (Ba2 stable) will hurt the
country's near-term growth prospects, given the significant share
of exports to the US. This could lead to heightened financial
stress for export-oriented industries and potentially impact the
broader economy and banking sector.
The bank's B1 deposit ratings are one notch above its b2 BCA
reflecting Moody's assumptions of a moderate probability of support
from the Government of Vietnam (Ba2 stable) in times of need.
As of December 2024, LPBank's nonperforming loans (NPLs) increased
to 1.6% from 1.3% a year ago because of higher delinquencies of
retail borrowers. The deterioration in asset quality led to a
slight decline in loan loss reserves as a percentage of NPLs to 83%
from 94% over the same period, reflecting modest buffers for future
loan losses. Moody's expects asset quality pressures to remain high
over the next 12-18 months as the bank plans to expand its retail
loans, which will pose unseasoned risk. However, the reduced
concentration to large borrowers will make the bank less vulnerable
to spikes in NPLs.
LPBank's capitalization remains modest. As of December 2024, its
tangible common equity as a percentage of risk-weighted assets
(TCE/RWA) declined moderately to 8.6% from 8.9%. Moody's expects
the bank's TCE/RWA to remain stable over the next 12-18 months with
capital generation and retention matching capital consumption. The
bank's return on tangible assets (ROTA) increased to 1.9% in 2024
from 1.5% in 2023 as the bank optimized funding costs and operating
expenses. Moody's expects profitability to decline moderately over
the next 12-18 months due to higher credit costs.
LPBank has increased its reliance on market funds in 2024. Market
funds as a percentage of tangible banking assets increased to 34%
as of year-end 2024 from 26% a year earlier. Despite the
concentrated deposit base, the bank has access to more stable
deposits from state-owned enterprises and retail deposits through
its extensive network of post offices and postal transaction
offices in Vietnam.
The bank's liquidity is modest. High-quality liquid assets such as
cash, balances with central bank and government securities,
accounted for just 10% of its total assets, providing a limited
buffer in times of need.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's could upgrade LPBank's deposit and issuer ratings if its
standalone credit strength or BCA improves. Moody's could upgrade
LPBank's b2 BCA if its TCE/RWA improves to more than 10% and ROTA
exceeds 1.8% on a sustained basis.
Moody's would downgrade LPBank's ratings and BCA if its NPLs exceed
3%, leading to higher credit costs and a decrease in ROTA to less
than 0.75%, or if the bank's TCE/RWA declines below 7%. A weakening
in LPBank's funding and liquidity will also be negative for its
BCA.
Moody's would also downgrade LPBank's deposit and issuer ratings if
Moody's assess that government support for the bank has weakened.
The principal methodology used in these ratings was Banks published
in November 2024.
Fortune Vietnam Joint Stock Commercial Bank, headquartered in
Hanoi, reported total assets of VND508 trillion as of December 31,
2024.
SAIGON-HANOI COMMERCIAL: Moody's Affirms 'B1' Issuer Rating
-----------------------------------------------------------
Moody's Ratings has affirmed the B1 local (LC) and foreign (FC)
currency long-term (LT) bank deposit and issuer ratings of Saigon
– Hanoi Commercial Joint Stock Bank (SHB), as well as the bank's
b2 Baseline Credit Assessment (BCA) and adjusted BCA.
Moody's have also affirmed SHB's Ba3 LT FC and LC Counterparty Risk
Ratings (CRR) and Ba3(cr) LT Counterparty Risk Assessment (CRA), NP
short-term (ST) FC and LC CRR, ST FC and LC bank deposit ratings,
ST FC and LC issuer ratings, NP(cr) ST CRA and (P)B1 FC senior
unsecured medium-term note (MTN) programme rating.
The rating outlooks for SHB, where applicable, are stable.
RATINGS RATIONALE
The affirmation of SHB's B1 ratings is driven by Moody's
expectations that the bank's stable profitability and improved
capitalization will provide buffers against high asset risks and
the bank's reliance on market funds. The large import tariffs
imposed by the US (Aaa negative) on Vietnam (Ba2 stable) will hurt
the country's near-term growth prospects, given the significant
share of exports to the US. This could lead to heightened financial
stress for export-oriented industries and potentially impact the
broader economy and banking sector.
The bank's B1 deposit ratings are one notch above its b2 BCA
reflecting Moody's assumptions of a moderate probability of support
from the Government of Vietnam in times of need.
As of the end of December 2024, SHB's nonperforming loans (NPLs)
decreased to 2.6% from 3.0% a year ago because of recoveries and
write-offs of NPLs. Nevertheless, SHB's increased exposures to real
estate and construction sectors pose asset risks. As of the end of
2024, loans to real estate and construction sectors accounted for
36% of the bank's total loans, higher than 33% a year earlier.
Moody's expects asset quality pressures to remain high over the
next 12-18 months as the real estate sector's recovery will be
gradual.
The bank's reported return on tangible assets (ROTA) improved
modestly to 1.4% in 2024 from 1.2% in 2023 driven by improvement in
net fee and commission income and lower credit costs which helped
offset the decline in net interest margin (NIM). Moody's expects
the bank's profitability to be under pressure over the next 12-18
months as credit costs increase given the elevated asset quality
risks.
While SHB's capitalization will further improve, supported by the
proceeds from the sale of the bank's consumer finance subsidiary,
SHBANK Finance Company Limited, Moody's expects that it will remain
at a modest level because of its lower profitability compared with
peers.
The rating affirmation also considers the bank's stable funding and
liquidity. As of the end of December 2024, market funds as a
percentage of tangible banking assets increased from a year
earlier. High-quality liquid assets such as cash, balances with
central bank and government securities, accounted for just 7% of
the bank's total assets, providing a limited buffer in times of
need.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
SHB's ratings could be upgraded if the bank's standalone credit
strength improves and leads to an upgrade of the BCA. Moody's could
upgrade SHB's b2 BCA, if its NPL ratio decreases below 2% and TCE/
RWA increases to above 10% and the bank reduces its reliance on
market funds while increasing the share of high-quality liquid
assets to more than 15% of its tangible banking assets on a
sustained basis. The rating upgrade will also be subject to the
bank lowering its credit concentration to the real estate sector.
Moody's would downgrade SHB's ratings if Moody's assesses that
government support for the bank has weakened. Moody's could also
downgrade SHB's BCA if loan concentration in real estate developers
and construction companies continues to increase to 50% of its
gross loans or if its NPLs increase above 4%, leading to higher
credit costs and a decrease in the ROTA to below 0.75%. A weakening
in SHB's funding and liquidity will also be negative for the bank's
BCA.
The principal methodology used in these ratings was Banks published
in November 2024.
Saigon – Hanoi Commercial Joint Stock Bank, headquartered in
Hanoi, reported total assets of VND747 trillion as of December 31,
2024.
*********
S U B S C R I P T I O N I N F O R M A T I O N
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