/raid1/www/Hosts/bankrupt/TCRAP_Public/250429.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
Tuesday, April 29, 2025, Vol. 28, No. 85
Headlines
A U S T R A L I A
ACTION SMART: Placed in Liquidation Owing Almost AUD5 Million
BAMBIS IMPORT: First Creditors' Meeting Set for May 7
BUSH SURF: Second Creditors' Meeting Set for June 6
POLY TRANSPORT: First Creditors' Meeting Set for May 5
PROOF & COMPANY: Australian Business Enters Administration
TRAFFIC TECHNOLOGIES: First Creditors' Meeting Set for May 5
UNITED CIVIL: Second Creditors' Meeting Set for May 2
C H I N A
CHINA OIL: Moody's Affirms 'Ba3' CFR & Alters Outlook to Stable
COUNTRY GARDEN: Sells 11% Stake in LandSpace for US$180 Million
POWERLONG REAL ESTATE: Taps CICC as New Sole Financial Advisor
SUNAC CHINA: Winding-Up Petition Hearing Moved to Aug. 25
XINYUAN REAL ESTATE: Closes $1.75M Private Placement With Xy Mgmt.
I N D I A
EMPLOYEES WELFARE: CRISIL Moves B+ Debt Rating to Not Cooperating
INDIAN TRADING: CRISIL Reaffirms B- Rating on INR12cr Cash Loan
JYOTIRMAYEE FOODS: CRISIL Withdraws D Rating on INR25cr Cash Loan
KAMTANATH OILS: CRISIL Keeps B+ Debt Ratings in Not Cooperating
LAKSHMI AGENCIES: CRISIL Keeps D Debt Ratings in Not Cooperating
MAGENTA DISTRIBUTORS: CRISIL Reaffirms B Rating on INR5.01cr Loan
NAIK SEAFOODS: CRISIL Withdraws B+ Rating on INR45cr Loan
NSL TEXTILES: CRISIL Reaffirms D Rating on INR63.26cr Cash Loan
PROGRESSIVE CARS: CRISIL Cuts Rating on INR38cr Loan to B+
S KUMAR: CRISIL Keeps D Debt Ratings in Not Cooperating Category
S.N.R. TRADERS: CRISIL Keeps B+ Debt Ratings in Not Cooperating
SAMADHAN KENDRA: CRISIL Moves B Debt Rating to Not Cooperating
SAMARPAN DEVLOPERS: CRISIL Keeps B Ratings in Not Cooperating
SAMYAK TRADEX: CRISIL Migrates B+ Debt Rating to Not Cooperating
SARAVANA HI-TECH: CRISIL Keeps B+ Debt Ratings in Not Cooperating
SEQUENCE REALTY: CRISIL Withdraws B Rating on INR43cr Term Loan
SHUNTY BUNTY: CRISIL Keeps B+ Debt Ratings in Not Cooperating
SIISA: CRISIL Keeps D Debt Rating in Not Cooperating Category
SION CERAMICS: CRISIL Keeps D Debt Ratings in Not Cooperating
SKYCOMM ELECTRONICS: CRISIL Keeps D Rating in Not Cooperating
SPARK CONDUCTORS: CRISIL Reaffirms B+ Rating on INR4cr Cash Loan
SPARK REALTY: CRISIL Keeps B+ Debt Rating in Not Cooperating
TONOY HOSPITALITY: CRISIL Assigns B+ Rating to INR11cr Term Loan
V. J. GOTE: CRISIL Withdraws B+ Rating on INR7.5cr Cash Loan
I N D O N E S I A
MEDCO ENERGI: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable
J A P A N
NISSAN MOTOR: Fitch Lowers LongTerm IDR to 'BB', Outlook Negative
M A L A Y S I A
GREENPRO CAPITAL: Reports $726K Net Loss in 2024
LYC HEALTHCARE: Pays MYR600,000 Outstanding Claims With Petitioner
REACH ENERGY: Bursa Reprimands, Fines Six Directors
N E W Z E A L A N D
CARING CARD: Court to Hear Wind-Up Petition on May 30
DENHEATH CORP: Court to Hear Wind-Up Petition on May 10
DIRECT PROPERTY: Creditors' Proofs of Debt Due on June 11
EELAM TRADERS: Court to Hear Wind-Up Petition on May 2
GIRAFFE GROUP: Creditors' Proofs of Debt Due on June 2
P A K I S T A N
PAKISTAN: Requests Extra CNY10 Billion on China Swap Line
S I N G A P O R E
CKR CONTRACT: Court Enters Wind-Up Order
DIAMOND AND SPADE: Court Enters Wind-Up Order
FORTUNE SOVEREIGN: Court Enters Wind-Up Order
GEC 3: Creditors' Proofs of Debt Due on May 19
GREAT CONNECTION: Creditors' Proofs of Debt Due on May 18
S O U T H K O R E A
HOMEPLUS CO: Prosecutors Raid Homeplus, MBK Offices
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A U S T R A L I A
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ACTION SMART: Placed in Liquidation Owing Almost AUD5 Million
-------------------------------------------------------------
Matt Jones at Daily Mail Australia reports that seven companies
operated by Action Smart Group are in liquidation with debts of at
least AUD4.7 million, including an eye-watering tax bill.
According to Daily Mail Australia, the nationwide panel beating
group blamed a lack of major hailstorms in recent years and the
business growing too fast, too soon for the demise of its workshops
in New South Wales, ACT, Victoria, and South Australia.
Dozens of small paint and panel beating businesses across Australia
have also lost thousands in the liquidations and are unlikely to be
repaid.
The companies, directed by Gold Coast's Adam Blackwell, went into
voluntary liquidation on April 2, and hired liquidator Steven
Naidenov of Aston Chace, Daily Mail Australia discloses.
Documents lodged by Mr. Naidenov with corporate regulator ASIC
revealed the companies owed at least AUD4.7 million.
Action Smart Group had authorised repairer deals with insurance
companies including NRMA and sent hail damage work to small
contractors across Australia.
Action Smart Group's website stated it was an Australian owned and
managed company that 'has established a reputation among insurers
and competitors as the market leading hail repair specialists'.
Daily Mail Australia relates that Mr. Naidenov said early
investigations showed the group may have expanded too quickly, had
borrowed AUD2 million and amassed tax debts of around AUD4
million.
'As a small business, losing any money is really hard in this day
and age,' one business owner told the Courier Mail.
'It means we'll have to source income from other areas.'
Mr. Blackwell said in a statement the decision to liquidate was
made to make sure all legal and ethical obligations to employees
were met 'and to ensure the best outcome for creditors, customers,
and suppliers,' Daily Mail Australia relays.
'This outcome also reflects the highly seasonal nature of the hail
repair industry, with reduced storm activity over the past three
years placing sustained pressure on the business and contributing
to this difficult decision,' the report quotes Mr. Blackwell as
saying.
'All employee entitlements, including wages and superannuation,
have been prioritised, and creditors have been engaged through the
formal liquidation process.'
Mr. Naidenov revealed three businesses were purchased by for
AUD6.78 million last September by other companies controlled by Mr.
Blackwell, and the legitimacy of those sales were being looked at
by the liquidator, Daily Mail Australia relays.
'My investigations into the commerciality of the above sales and
other aspects of the liquidations such as other voidable
transactions are ongoing,' he said.
'In the event that the sales are uncommercial or undervalue then
action will be commenced against the purchasing entities and the
parties associated with the sale to remedy such claim.
'I have yet to form a view regarding the appropriateness of the
pre-appointment business sales.'
BAMBIS IMPORT: First Creditors' Meeting Set for May 7
-----------------------------------------------------
A first meeting of the creditors in the proceedings of Bambis
Import Co. Pty Ltd will be held on May 7, 2025 at 2:00 p.m. via
virtual meeting technology.
Laurence Fitzgerald and Garth O'Connor-Price of William Buck were
appointed as administrators of the company on April 25, 2025.
BUSH SURF: Second Creditors' Meeting Set for June 6
---------------------------------------------------
A second meeting of creditors in the proceedings of Bush Surf
Company Pty Limited has been set for June 6, 2025 at 10:30 a.m. at
the offices of Worrells at Suite 5B, 55 Kembla Street in Wollongong
and via virtual meeting technology.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by June 5, 2025 at 5:00 p.m.
Stephen John Hundy of Worrells was appointed as administrator of
the company on Feb. 25, 2025.
POLY TRANSPORT: First Creditors' Meeting Set for May 5
------------------------------------------------------
A first meeting of the creditors in the proceedings Of Poly
Transport Systems Pty Ltd will be held on May 5, 2025 at 2:00 p.m.
virtually via Zoom.
Ivan Glavas of Worrells was appointed as administrator of the
company on April 23, 2025.
PROOF & COMPANY: Australian Business Enters Administration
----------------------------------------------------------
The Shout reports that premium spirits distributor Proof & Company
has entered its Australian business into voluntary administration,
citing the economy and the changing landscape of the spirits
industry as factors.
Sa'Pere, trading as Proof & Company Australia, announced it will
appoint administrators to explore all options and achieve the best
possible outcome for all involved.
It is unclear what the move will mean for its Australian staff and
supply partnerships.
"This decision was not made lightly," the company said in a
statement, The Shout relays.
"It reflects the challenges of a local economic downturn and a
changing landscape in the spirits industry.
"As is customary in this process, the appointed administrators will
explore all options and seek to achieve the best possible outcome
for all involved."
According to The Shout, the company said it will continue to
operate "as usual" in its other markets including Singapore, New
Zealand and Hong Kong, where it also runs 28 HongKong Street bar.
"While this is a difficult period in the industry, it is also one
of reflection, renewal, and resilience," it said.
"We are committed as ever to our mission and to the people,
customers and brands who make it all possible.
"To everyone who contributed, a heartfelt thank you for these last
seven years in Australia."
The Shout says Proof & Company has partnered with a number of craft
and premium spirits brands to distribute them within Asia,
including Husk Distillers' rum and Ink Gin.
The deal with Husk was signed 12 months ago and gave Proof &
Company exclusive distribution rights for Husk Distillers' range of
spirits across APAC.
At the time, Husk Distiller owner, Paul Messenger, said after years
of distributing his own products, it was time for the business to
grow.
"We are very impressed with the Proof & Company team and business
model, and we share a passion and belief that together we can make
great things happen," he said.
The Shout has reached out to Husk Distiller to see what these new
developments mean for its distribution channels, and to Proof &
Company for comment on voluntary administration. Both are yet to
respond at the time of publishing.
TRAFFIC TECHNOLOGIES: First Creditors' Meeting Set for May 5
------------------------------------------------------------
A first meeting of the creditors in the proceedings of these
entities will be held on May 5, 2025 at 11:00 a.m. via electronic
means.
- Traffic Technologies Ltd.
- Aldridge Traffic Systems Pty. Ltd.
- Sunny Sign Company Pty. Ltd.
- Quick Turn Circuits Pty. Ltd.
- L&M Traffic Services Pty. Ltd.
- De Neefe Pty. Ltd.
Glenn Jeffrey Franklin and Jason Glenn Stone of PKF Melbourne were
appointed as administrators of the company on April 23, 2025.
UNITED CIVIL: Second Creditors' Meeting Set for May 2
-----------------------------------------------------
A second meeting of creditors in the proceedings of United Civil
Resources Pty Limited has been set for May 2, 2025 at 3:00 p.m. at
Level 1, 160 Pacific Highway in Charlestown and via virtual meeting
technology.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 1, 2025 at 5:00 p.m.
Paul William Gidley of Shaw Gidley was appointed as administrator
of the company on March 24, 2025.
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C H I N A
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CHINA OIL: Moody's Affirms 'Ba3' CFR & Alters Outlook to Stable
---------------------------------------------------------------
Moody's Ratings has affirmed China Oil and Gas Group Limited's
(COG) Ba3 corporate family rating and senior unsecured rating. At
the same time, Moody's changed the outlook to stable from
negative.
"The change in outlook to stable is underpinned by the company's
recent actions to address immediate corporate governance concerns,
including the timely publication of its 2024 financial results and
measures taken to remove an external loan guarantee commitment,"
says Boris Kan, a Moody's Ratings' Vice President and Senior Credit
Officer.
"The rating affirmation reflects Moody's expectations that COG's
operating and financial performance will remain stable at its
current Ba3 CFR, although the company's corporate governance risk
remains elevated," adds Kan.
Governance considerations are a driver of the rating action, with
elevated risks related to the company's loans to its associate.
RATINGS RATIONALE
COG announced its 2024 full year results on March 21, 2025, in line
with the reporting requirements by the Hong Kong Stock Exchange.
Its revenue declined by 4.7% and net profit increased by 84.5%
year-on-year, and total gas sales and transmission volume grew by
3.2%. These performances were largely in line with Moody's
expectations, and the company's retained cash flow (RCF)/debt of
14.6% and funds from operations (FFO) interest coverage of 3.6x
during the period are within the rating parameters of its Ba3 CFR.
The amount of an outstanding corporate guarantee provided to
Shandong Shengli, COG's 22.16%-owned associate, has come down to
zero since January 2024. Moody's believes the company will not
extend such a guarantee going forward, a credit positive. Because
COG is Shandong Shengli's single largest shareholder and has board
control over and is closely involved in strategic decision-making
in Shandong Shengli, Moody's manually consolidate Shandong
Shengli's financials into COG's for the latter's credit metrics
calculations.
That said, COG has an outstanding shareholder loan to Sino Director
Limited, a 17.5%-owned associate that operates certain coal mine
assets in Shandong province. These operations are outside of the
company's core city gas business and entail higher risks. Along
with its limited transparency due to its private status, the
shareholder loan highlights COG's governance risk and weigh on the
company's Ba3 CFR. That said, there have been some positive
developments in the operational status of the coal mine assets, and
Moody's expects the cash leakage risks related to the shareholder
loan to be manageable and reflected at COG's Ba3 CFR.
COG's Ba3 CFR reflects its steady but slower growth in gas sales
volumes over the next two to three years, supported by positive
industry policies. In addition, the expected reduction in future
capital spending in new projects would relieve the company's
leverage.
The CFR also considers the company's (1) high risk appetite,
including its investments in its associates, namely Shandong
Shengli and Sino Director, (2) overseas upstream operations, and
(3) weak liquidity at the holding company.
In terms of environmental, social and governance (ESG) factors,
Moody's considers COG's governance risk to be high, considering its
previous investments as well as the delay in publishing its FY2023
annual results.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Upward rating pressure could emerge over time if COG establishes a
proven track record with timely cost pass-through for its city gas
projects; shows increased diversification in revenue, such that
Qinghai province contributes to less than 30% of its total revenue;
and strengthens its corporate governance framework, including
resolving the shareholder loan with its associates, as well as
higher transparency and internal controls on related party
transactions with other investments undertaken by its chairman.
Financial metrics indicative of an upgrade include its retained
cash flow (RCF)/debt above 18% and Moody's-adjusted funds from
operations (FFO) interest coverage above 4.5x on a sustained basis,
both calculated with full consolidation of Shandong Shengli.
The rating could be downgraded if COG's corporate governance risks
are heightened, including a substantial increase in loans to Sino
Director and/or other associates. Other factors that could result
in a rating downgrade include a significant increase in the risks
associated with COG's overseas upstream operations, aggressive
debt-funded expansion projects or acquisitions, adverse regulatory
changes, or additional funding support to its upstream business and
its associates. Weak liquidity will also trigger a downgrade.
Financial metrics indicative of a downgrade include RCF/debt
falling below 13% and funds from operations (FFO) interest coverage
staying below 3.0x on a sustained basis, with full consolidation of
Shandong Shengli, while liquidity at the holding company level
remains weak.
The principal methodology used in these ratings was Regulated
Electric and Gas Utilities published in August 2024.
China Oil and Gas Group Limited (COG) engages in the piped city gas
business, as well as the transportation and distribution of
compressed natural gas (CNG) and liquefied natural gas (LNG). The
company expanded its footprint to oil and gas production in Canada
in July 2014.
COUNTRY GARDEN: Sells 11% Stake in LandSpace for US$180 Million
---------------------------------------------------------------
Reuters reports that Country Garden said on April 25 it would sell
an 11.063% stake in LandSpace Technology Co for CNY1.31 billion
(US$179.76 million). The disposal is part of the embattled
property developer's effort to resolve its liquidity issues.
Reuters relates that the company said it expects to record a
cumulative pre-tax profit of CNY370 million.
Earlier this month, Country Garden reached an agreement with a key
bondholder group and was close to finalising negotiations with a
group of bank creditors, Reuters recalls.
Country Garden has been an investor in LandSpace since 2019.
LandSpace is engaged in the research and development of liquid
oxygen-methane carrier rockets.
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.
As reported in the Troubled Company Reporter-Asia Pacific in late
February 2024, Kingboard Holdings-backed money lender Ever Credit
on Feb. 27, 2024, filed a winding-up petition against Country
Garden to the Hong Kong High Court for non-payment of a US$205
million loan.
The TCR-AP reported in late March 2024 that Country Garden has
hired Kroll to carry out a liquidation analysis. Kroll, the New
York-headquartered financial advisory firm, is expected to conduct
an independent business review of Country Garden before projecting
a recovery rate for the developer's creditors under a liquidation
scenario, according to Reuters.
The developer defaulted on US$11 billion of offshore bonds last
year and is in the process of an offshore debt restructuring.
POWERLONG REAL ESTATE: Taps CICC as New Sole Financial Advisor
--------------------------------------------------------------
TipRanks reports that Powerlong Real Estate Holdings Limited has
appointed China International Capital Corporation Hong Kong
Securities Limited as its new sole financial advisor to address its
current liquidity issues.
According to TipRanks, the company, along with its advisors, is
working towards a holistic solution to reach an agreement with
offshore creditors, emphasizing the need for patience and support
from stakeholders.
Powerlong Real Estate Holdings Ltd. operates real estate
businesses. The Company provides housing renovation, housing loans,
real estate brokerage, and other services. Powerlong Real Estate
Holdings also operates hotel operation, tourism development, and
other businesses.
As reported in the Troubled Company Reporter-Asia Pacific in early
July 2022, Moody's Investors Service has downgraded Powerlong Real
Estate Holdings Limited's corporate family rating to Caa2 from Caa1
and senior unsecured rating to Caa3 from Caa2. The outlook remains
negative.
On June 29, 2022, S&P Global Ratings lowered its long-term issuer
credit rating on Powerlong Real Estate Holdings Ltd. to 'CCC+' from
'B'. S&P also lowered the long-term issue rating on the developer's
senior unsecured notes to 'CCC' from 'B-'. At the same time, S&P
placed the ratings on CreditWatch with negative implications. S&P
subsequently withdrew its issuer credit rating and issue rating on
Powerlong at the company's request.
In December 2023, Powerlong Real Estate Holdings said it missed a
coupon payment on an offshore bond and hiring restructuring
advisors, according Mingtiandi. Having failed to pay US$15.9
million in interest on a set of dollar bonds by the Oct. 30, 2023,
due date, the developer said that it had failed to honour that
obligation within the 30-day grace period, triggering a default and
setting the stage for a debt restructuring.
SUNAC CHINA: Winding-Up Petition Hearing Moved to Aug. 25
---------------------------------------------------------
TipRanks reports that Sunac China Holdings Limited, a company
incorporated in the Cayman Islands, is currently involved in a
legal proceeding concerning a winding-up petition. The High Court
has adjourned the hearing of this petition to Aug. 25, 2025.
TipRanks says the company plans to provide updates to its
shareholders and investors as necessary, advising caution when
dealing with its securities.
Sunac China Holdings Limited (SEHK:1918) --
http://www.sunac.com.cn/-- engages in the sales of properties in
the People's Republic of China. The Company operates its business
through two segments: Property Development and Property Management
and Others. The Company's subsidiaries include Sunac Real Estate
Investment Holdings Ltd., Qiwei Real Estate Investment Holdings
Ltd. and Yingzi Real Estate Investment Holdings Ltd.
Sunac is among a string of Chinese property developers that have
defaulted on their offshore debt payment obligations since the
sector was hit by a liquidity crisis in 2021, roiling global
markets, according to Reuters.
Creditors of Sunac China Ltd have approved its NZD9 billion
offshore debt restructuring plan, the company said on Sept. 18,
2023, marking the first approval of such debt overhaul by a major
Chinese property developer.
Sunac China Holdings Limited sought creditor protection in the
United States under Chapter 15 of the Bankruptcy Code (Bankr.
S.D.N.Y. Case No. 23-11505) on Sept. 19, 2023. U.S. Bankruptcy
Judge Philip Bentley presides over the Chapter 15 proceedings.
Sidley Austin is the legal counsel to Sunac China.
XINYUAN REAL ESTATE: Closes $1.75M Private Placement With Xy Mgmt.
------------------------------------------------------------------
Xinyuan Real Estate Co., Ltd. disclosed in a Form 6-K Report filed
with the U.S. Securities and Exchange Commission that on April 7,
2025, the Company closed a private placement pursuant to a certain
subscription agreement dated January 20, 2025 with Xy Management
Limited. The Company issued to the Purchaser an aggregate of
12,515,080 common shares of the Company, par value $0.0001 per
share, at a purchase price of $0.14 per Common Share ($2.80 per
American Depository Shares if converted). A related Supplemental
Listing Application was approved by the NYSE on January 30, 2025.
The Common Shares have not been registered under the Securities Act
of 1933, as amended, or the securities laws of any state, and were
offered and issued in reliance on exemptions from registration
under the Securities Act, afforded by provisions of Section 4(a)(2)
and Regulation S promulgated under the Securities Act. The
management of the Company will have sole and absolute discretion
concerning the use of the proceeds from the Private Placement.
About Xinyuan Real Estate Co. Ltd.
Xinyuan Real Estate Co. Ltd., headquartered in Beijing, is a
residential real estate developer primarily focused on China's
tier-one and tier-two cities. Founded in 1997, the Company targets
middle-income homebuyers with large-scale, high-quality housing
projects and has extended its operations to the U.S., U.K., and
Malaysia. Xinyuan also offers property management and ancillary
services, and its shares trade on the New York Stock Exchange under
the ticker symbol XIN.
Creditors of Xinyuan Real Estate Co. Ltd. sought involuntary
petition under Chapter 11 of the U.S. Bankruptcy (Bankr. S.D.N.Y.
Case No. 25-10745) on April 14, 2025.
The Debtor is represented by Paul R. DeFilippo, Esq. at WOLLMUTH
MAHER & DEUTSCH LLP.
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I N D I A
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EMPLOYEES WELFARE: CRISIL Moves B+ Debt Rating to Not Cooperating
-----------------------------------------------------------------
Crisil Ratings has migrated the rating on the bank facilities of
Employees Welfare Fund (EWF) to 'Crisil B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 22 Crisil B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Crisil Ratings has been consistently following up with EWF for
getting information. Crisil Ratings requested cooperation and
information from the issuer through letter dated March 21, 2025
apart from telephonic and email communication. However, the issuer
has continued to be non-cooperative.
'Investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'issuer not cooperating' as the rating is arrived
at without any management interaction and is based on
best-available or limited or dated information on the firm. Such
non-co-operations by a rated entity may be a result of
deterioration in its credit risk profile. The rating with 'issuer
not cooperating' suffix lacks a forward-looking component'.
Detailed Rationale
Despite repeated attempts to engage with the management, Crisil
Ratings failed to receive any information on either the financial
performance or strategic intent of EWF which restricts the ability
of Crisil Ratings to take a forward-looking view on the entity's
credit quality. Crisil Ratings believes that the rating action on
EWF is consistent with 'Assessing Information Adequacy Risk'. Based
on the last-available information, the rating on the bank
facilities of EWF has been migrated to 'Crisil B+/Stable Issuer Not
Cooperating'.
Analytical Approach
CRISIL Ratings has evaluated the standalone business and financial
risk profiles of EWF.
About the society
EWF is a non-profit organisation registered as a society in 1975
under the Karnataka's Societies Registration Act. It caters to
employees and officers based in the Bengaluru (Karnataka) division
of HAL. The objective of EWF is to provide financial assistance for
the welfare of its members by way of loans for education and
medical treatment and carry out other activities related to the
welfare of the employees and their families. Loan dues are deducted
by the employer, HAL from the salary of the members and remitted to
EWF.
INDIAN TRADING: CRISIL Reaffirms B- Rating on INR12cr Cash Loan
---------------------------------------------------------------
Crisil Ratings has reaffirmed its 'Crisil B-/Stable/Crisil A4'
ratings on the bank loan facilities of Indian Trading Bureau Pvt
Ltd (ITBPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12 Crisil B-/Stable (Reaffirmed)
Letter of Credit 6.55 Crisil A4 (Reaffirmed)
The ratings continue to reflect a weak financial risk profile and
large working capital requirement. These weaknesses are partially
offset by the extensive experience of the promoters in the poultry
feed industry, moderate scale of operations and healthy
profitability.
Analytical Approach
Crisil Ratings has evaluated the standalone business and financial
risk profiles of ITBPL.
Key Rating Drivers & Detailed Description
Weaknesses:
* Weak financial risk profile: The company has an average financial
profile as indicated by estimated gearing of 2.86 times and total
outside liabilities to adjusted networth (TOLANW) ratio of 3.80
times as on March 31, 2025. Debt protection metrics have also been
weak in the past due to high gearing and low accrual from
operations. The interest coverage and net cash accrual to total
debt (NCATD) ratios are estimated to be 2.08 times and 0.07 time,
respectively, for fiscal 2025, but are expected to improve over the
medium term as debt levels come down.
* Highly leveraged capital structure: ITBPL has average financial
profile, as reflected by high TOLANW ratio of 4-5 times during the
three fiscals through 2024, which is expected to improve over the
medium term.
* Large working capital requirement: Gross current assets (GCAs)
are estimated to be around 271 days as on March 31, 2025, driven by
large debtors and inventory of 100 days and 135-145 days each. The
working capital cycle is likely to improve over the medium term but
will largely remain stretched with GCAs estimated between 250 days
and 270 days, constraining liquidity.
Strengths:
* Extensive experience of the promoters: The promoters have been in
the poultry industry for over two decades. Their expertise, strong
understanding of market dynamics and healthy relationships with
customers and suppliers should continue to support the business.
* Moderate scale of operations and profitability: Revenue improved
to INR41.73 crore in fiscal 2024 against INR32 crore in fiscal
2023, as indicated by higher volume traded, which is expected to
improve over the medium term and range between INR45 crore and
INR55 crore over the next few fiscals. Revenue clocked till
December 2024 was INR33 crore. The profitability was comfortable
at 8.1% in fiscal 2024 and is expected to remain at a similar level
over the medium term.
Liquidity: Stretched
Bank limit utilisation was high at 103% on average for the 12
months ended March 31, 2025. Cash accrual is expected to be
INR1.7-2.8 crore which will be sufficient against term debt
obligation of INR0.11-2 crore over the medium term, and the surplus
will cushion the liquidity of the company. The current ratio is
estimated to be moderate at 1.14 times as on March 31, 2025.
Outlook: Stable
Crisil Ratings believes ITBPL will continue to benefit from the
extensive experience of its promoters.
Rating sensitivity factors
Upward factors:
* Sustenance in revenue and profitability leading to net cash
accrual over INR2 crore
* Improvement in the liquidity profile with higher buffer in
average bank limit utilization.
Downward factors:
* Substantial decline in revenue with lower-than-expected operating
margin leading to cash accrual below INR1 crore
* Further stretch in the working capital cycle
ITBPL, incorporated in 1948, was acquired by Kolkata-based Mr.
Tejvinder Singh Chattha and his family members in 1989. The company
trades in poultry feed additives such as enzymes and products such
as vaccines and disinfectants.
JYOTIRMAYEE FOODS: CRISIL Withdraws D Rating on INR25cr Cash Loan
-----------------------------------------------------------------
Crisil Ratings has withdrawn its rating on the bank facilities of
Jyotirmayee Foods Private Limited (JFPL) on the request of the
company and after receiving no objection certificate from the bank.
The rating action is in-line with Crisil Rating's policy on
withdrawal of its rating on bank loan facilities.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 25 Crisil D (Issuer Not
Cooperating (Withdrawn)
Term Loan 5 Crisil D (Issuer Not
Cooperating (Withdrawn)
Crisil Ratings has been consistently following up with JFPL for
obtaining information through letter and email dated April 1, 2025
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, Crisil
Ratings failed to receive any information on either the financial
performance or strategic intent of JFPL. This restricts Crisil
Ratings' ability to take a forward looking view on the credit
quality of the entity. Crisil Ratings believes that rating action
on JFPL is consistent with 'Assessing Information Adequacy Risk'.
Therefore, on account of inadequate information and lack of
management cooperation, Crisil Ratings has migrated the rating on
the bank facilities of JFPL to 'Crisil D Issuer not cooperating'.
Incorporated in 2007, JFPL manufactures rice bran crude oil and
de-oiled bran. JFPL sells rice bran crude oil to refineries in
Andhra Pradesh and Telangana, and de-oiled bran to aquafeed
manufacturers and aqua farmers. JFPL is promoted by Mr. R H
Ramgopal, Mr. Ravipati S V K Varun, and Mr. Ravipati Sri Vijay
Maruthi Raghuram.
KAMTANATH OILS: CRISIL Keeps B+ Debt Ratings in Not Cooperating
---------------------------------------------------------------
Crisil Ratings said the ratings on bank facilities of Shree
Kamtanath Oils Private Limited (SKOPL) continue to be 'Crisil
B+/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4 Crisil B+/Stable (Issuer Not
Cooperating)
Proposed Cash 3.7 Crisil B+/Stable (Issuer Not
Credit Limit Cooperating)
Term Loan 1.3 Crisil B+/Stable (Issuer Not
Cooperating)
Crisil Ratings has been consistently following up with SKOPL for
obtaining information through letter and email dated March 12, 2025
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, Crisil
Ratings failed to receive any information on either the financial
performance or strategic intent of SKOPL, which restricts Crisil
Ratings' ability to take a forward looking view on the entity's
credit quality. Crisil Ratings believes that rating action on SKOPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
SKOPL continues to be 'Crisil B+/Stable Issuer not cooperating'.
SKOPL was incorporated by Mr. Deendayal Singhal and Abhay Agarwal
in 2009-10. It is engaged in manufacturing of edible mustard oil &
cake from mustard seeds and also manufacturing of guar gum splits
from guar seeds. The firm has one manufacturing unit based in
Morena (Madhya Pradesh) with a total crushing capacity of 50 tons
of per day for mustard and 70 tons per day for guar seeds.
LAKSHMI AGENCIES: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Sree Lakshmi
Agencies (SLA) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3 CRISIL D (Issuer Not
Cooperating)
Cash Credit 1 CRISIL D (Issuer Not
Cooperating)
Cash Credit 0.5 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 6 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 0.5 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 1 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 2.5 CRISIL D (Issuer Not
Cooperating)
Crisil Ratings has been consistently following up with SLA for
obtaining information through letter and email dated March 12, 2025
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, Crisil
Ratings failed to receive any information on either the financial
performance or strategic intent of SLA, which restricts Crisil
Ratings' ability to take a forward looking view on the entity's
credit quality. Crisil Ratings believes that rating action on SLA
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SLA continues to be 'Crisil D/Crisil D Issuer not cooperating'.
SLA was established in 1993, as a partnership firm by Mrs. T Jaypal
and her sister, Mrs. Selva Sundari. The firm is the exclusive
distributor of ITC Ltd.'s cigarettes and fast-moving consumer goods
in Tiruvallur, and also trades in pulses, particularly urad dal.
SVE, set up in 2010, is the exclusive distributor of ITC's
cigarettes and fast-moving consumer goods in the Kanchipuram
district of Tamil Nadu. The firm also trades in pulses,
particularly urad dal. Operations are managed by Mr. Raj Kumar and
his brother, Mr. Ramesh Kumar.
MAGENTA DISTRIBUTORS: CRISIL Reaffirms B Rating on INR5.01cr Loan
-----------------------------------------------------------------
Crisil Ratings has reaffirmed its ratings on the bank loan
facilities of Magenta Distributors Private Limited (MDPL) at
'Crisil B/Stable/Crisil A4'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.33 Crisil A4 (Reaffirmed)
Cash Credit 2.50 Crisil B/Stable (Reaffirmed)
Cash Credit 3.66 Crisil B/Stable (Reaffirmed)
Proposed Working
Capital Facility 5.01 Crisil B/Stable (Reaffirmed)
Rupee Term Loan 0.33 Crisil B/Stable (Reaffirmed)
Rupee Term Loan 0.50 Crisil B/Stable (Reaffirmed)
The ratings continues to reflect the company's small scale of
operations amidst intense competition, and susceptibility to
climatic conditions, volatility in raw material prices and intense
competition and modest working capital cycle. These weaknesses are
partially offset by the extensive experience of the promoters in
the agro-commodity business and moderate financial profile.
Analytical Approach
Crisil Ratings has evaluated the standalone business and financial
risk profiles of MDPL.
Key Rating Drivers & Detailed Description
Weaknesses:
* Small scale of operations amid intense competition: Scale of
operations remains modest at INR28 crore in FY25 against INR27
crore in FY24. The scale is expected to remain stable at around
INR26-30 crore over the next three fiscals owing to high-capacity
utilization in rice mill. Although the rice and flouring industry
being highly competitive, moderate capacity utilization is expected
to support the topline of the business over the medium term.
* Susceptibility to climatic conditions, volatility in raw material
prices and intense competition: The crop yield of paddy is
dependent on adequate and favorable climatic conditions. Thus, MDPL
is exposed to the risk of limited availability of its key raw
material during unfavorable climatic conditions. Also, production
may be impacted by pests or crop infection leading to higher
unpredictability in the production and pricing of Agri-commodities
and derived products. Though the market is highly competitive,
efficient management of operations is expected to support the
business risk profile over the medium term.
* Modest Working Capital Cycle: Working Capital management remains
modest marked by GCA days of around 105 days in FY25. The same is
due to higher inventory of around 85 days in FY25. This cycle is
expected to remain modest over the medium term.
Strengths:
* Extensive experience of the promoters in the agro-commodity
business: The partners' experience of over two decades in the rice
and flour milling business, their in-depth understanding of the
dynamics of the market and established relationships with local
suppliers and customers should continue to support the business.
* Moderate financial profile: Gearing of the business was around
1.5 times in FY25. Debt protection metrics of the business is was
healthy at around 2 times in FY25. The same is expected to improve
over the medium term. With steady accretion to reserves and no
major debt funded capex plans, financial risk profile is expected
to remain moderate over the medium term.
Liquidity: Stretched
The average month end bank limit utilisation stood at around 90% in
the last 12 months ended February 2025. The net cash accruals are
expected to be around INR80 lakhs, which is sufficient against the
repayment obligations of less than INR40 lakhs over the medium
term.
The current ratio is low at 0.9 times for FY25 and is expected to
remain in the same range over the medium term.
Outlook: Stable
Crisil Ratings believes MDPL will continue to benefit from the
extensive experience of its promoters in the agro-commodity
business.
Rating sensitivity factors
Upward factors:
* Sustained growth in revenue and operating profitability leading
to higher than expected net cash accrual.
* Efficient working capital management along with improvement in
financial risk profile reflected by TOL/TNW of less than 2 times.
Downward factors:
* Sustained decline in topline with lower operating margins and
resulting in expected accruals of lower than INR0.5 crore over the
medium term
* Increase in working capital requirement, sizeable additional debt
or withdrawal of unsecured loans leading to stretched liquidity or
delay in meeting debt obligation.
MDPL was set up in 2009, by the promoters, Mr. Sanjeev Agarwal, Mr.
Sudip Kumar Sil and Mr. Subham Agarwalla. The Kolkata-based company
processes wheat and rice. The flour mill at Hooghly, West Bengal,
produces atta, maida, suji, and wheat bran. The rice mill is
located in Howrah, West Bengal.
NAIK SEAFOODS: CRISIL Withdraws B+ Rating on INR45cr Loan
---------------------------------------------------------
Crisil Ratings has withdrawn its ratings on the bank facilities of
Naik Seafoods Private Limited (NSFPL; a part of the Naik group) on
the request of the company and after receiving no objection
certificate from the bank. The rating action is in-line with Crisil
Rating's policy on withdrawal of its rating on bank loan
facilities.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Foreign Bill 45 Crisil B+/Stable (ISSUER NOT
Discounting COOPERATING; Rating continues
at the same level and
Withdrawn)
Crisil Ratings has been consistently following up with NSFPL for
obtaining information through letter and email dated March 11, 2025
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component'.
Detailed Rationale
Despite repeated attempts to engage with the management, Crisil
Ratings failed to receive any information on either the financial
performance or strategic intent of NSFPL. This restricts Crisil
Ratings' ability to take a forward looking view on the credit
quality of the entity. Crisil Ratings believes that rating action
on NSFPL is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the rating on bank
facilities of NSFPL continues to be 'Crisil B+/Stable Issuer Not
Cooperating'.
NSFPL, incorporated in 1979, processes and exports various types of
seafood products. It deals in different types of fish and squids
and has facilities in Ratnagiri, Maharashtra. NFFPL, established in
1996, processes and exports various types of seafood products. It
deals in different types of fish, shrimps and squids and has
facilities in Taloja, Mumbai. Mr. Nisar Naik manages the operations
of the group.
NSL TEXTILES: CRISIL Reaffirms D Rating on INR63.26cr Cash Loan
---------------------------------------------------------------
Crisil Ratings has reaffirmed its 'Crisil D/Crisil D' ratings on
the bank loan facilities of NSL Textiles Ltd (NSLTL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 15.49 Crisil D (Reaffirmed)
Cash Credit 63.26 Crisil D (Reaffirmed)
Cash Credit 24.01 Crisil D (Reaffirmed)
Cash Credit 11.99 Crisil D (Reaffirmed)
Cash Credit 31.01 Crisil D (Reaffirmed)
Cash Credit 7.14 Crisil D (Reaffirmed)
Letter of credit
& Bank Guarantee 1.01 Crisil D (Reaffirmed)
Letter of credit
& Bank Guarantee 0.21 Crisil D (Reaffirmed)
Letter of credit
& Bank Guarantee 30.73 Crisil D (Reaffirmed)
Term Loan 4.88 Crisil D (Reaffirmed)
Term Loan 4.98 Crisil D (Reaffirmed)
Term Loan 4.37 Crisil D (Reaffirmed)
Term Loan 4.22 Crisil D (Reaffirmed)
Term Loan 22.22 Crisil D (Reaffirmed)
Term Loan 12.61 Crisil D (Reaffirmed)
Term Loan 14.16 Crisil D (Reaffirmed)
Term Loan 6.02 Crisil D (Reaffirmed)
The reaffirmation reflects the delay in servicing of optionally
convertible debentures (OCDs) and term loan by NSLTL and continuing
overdue as on date.
The ratings also factor in the company's subdued operating profit,
working capital-intensive operations and weak financial risk
profile. These weaknesses are partially offset by NSLTL's fully
integrated manufacturing process and presence across the value
chain.
Analytical Approach
Compulsory convertible zero-coupon debentures of INR270.70 crore
from group companies (Mandava Holdings Pvt Ltd, Prabhat Agri
Biotech, Prabhakar Rao and Yaaganti Seeds), have been treated as
quasi-equity.
Optionally convertible zero-coupon debentures of INR2.50 crore from
Mandava Holdings Pvt Ltd have been treated as debt.
OCDs of INR371.25 crore, with coupon of 0.01% per annum, from banks
have been treated as debt.
Key Rating Drivers & Detailed Description
Weaknesses:
* Delay in debt servicing: There has been a delay is servicing of
OCDs as per the banker's feedback and the company management. Weak
liquidity, following tepid performance and pressure on cash flow,
has resulted in the delay. The submission of 'no default statement'
by the issuer (last shared for November 2023), however, does not
indicate of any delay in repayment of any facilities.
* Subdued operating profit: NSLTL's operating profitability was
impacted in fiscal 2024 and the first nine months of fiscal 2025
due to low capacity utilisation driven by muted demand. In fiscal
2024, the profitability declined to negative 7.9% from 1% in fiscal
2023 due to sub-optimal capacity utilisation. In the first nine
months of fiscal 2025, operating profit was negative, resulting in
negative accrual. Material improvement in profitability will depend
on recovery in demand and optimal capacity utilisation.
* Weak financial risk profile: The financial risk profile remains
constrained by sizeable debt of INR595 crore as of March 2024
(including OCDs of INR364 crore). Gearing remains high because of
the large debt-funded capital expenditure undertaken in the past
and losses since fiscal 2023, impacting the networth. Debt
protection metrics were weak, with interest coverage and net cash
accrual to total debt (NCATD) ratio at negative 1.8 times and
negative 0.22 time, respectively, in fiscal 2024, and remained weak
in fiscal 2025 as well.
* Working capital-intensive operations and susceptibility to
volatility in cotton prices and foreign exchange fluctuations: Any
sharp volatility in cotton prices will impact the working capital
requirement, profitability and demand-supply dynamics of
end-products such as yarn/fabrics. The company's ability to manage
these challenges effectively will remain critical for the
sustenance of improved performance.
Strength:
* Fully integrated manufacturing process and presence across value
chain: NSLTL started out as a cotton yarn manufacturer and expanded
its production capabilities through a series of acquisitions. Over
the years, it has evolved into a complete textile player, with
presence across the value chain, including ginning, spinning,
weaving, and fabric processing and dyeing. Integrated manufacturing
facilities enhance the flexibility in NSLTL's operations, allowing
it to strategically plan and control raw material procurement and
production policies, resulting in healthy operational efficiency.
Liquidity: Poor
Liquidity is poor as reflected in delays in meeting debt
obligations. Bank limit utilisation was high at 88% on average for
the six months through February 2025. Cash accrual will be
inadequate to service the upcoming debt obligation.
Rating sensitivity factors
Upward factors:
* Track record of timely debt servicing for at least over 90 days
* Improvement in operating performance resulting in improvement in
liquidity position.
NSLTL, set up in 2002 and promoted by Mr. M Prabhakhar Rao, is part
of the NSL group. The group has revenue of over USD 1 billion, and
its businesses include seeds, textiles, power, infrastructure, and
sugar. NSLTL is in the textile industry, and has spinning, weaving,
yarn and fabric dyeing, processing, and garmenting capacities.
NSLTL's manufacturing facilities are spread over seven locations in
Andhra Pradesh.
PROGRESSIVE CARS: CRISIL Cuts Rating on INR38cr Loan to B+
----------------------------------------------------------
Due to inadequate information, Crisil Ratings, in line with
guidelines of Securities Exchange Board of India, had migrated its
rating on the long-term bank facilities of Progressive Cars Private
Limited (PCPL) to 'Crisil BB/Stable issuer Not Cooperating'.
However, the management has subsequently started sharing
information, necessary for carrying out a comprehensive review of
the rating. Consequently, Crisil Ratings is migrating the rating to
'Crisil B+/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Inventory Funding 38 Crisil B+/Stable (Migrated
Facility from 'Crisil BB/Stable
ISSUER NOT COOPERATING')
Inventory Funding 5 Crisil B+/Stable (Migrated
Facility from 'Crisil BB/Stable
ISSUER NOT COOPERATING')
Inventory Funding 25 Crisil B+/Stable (Migrated
Facility from 'Crisil BB/Stable
ISSUER NOT COOPERATING')
Inventory Funding 0.28 Crisil B+/Stable (Migrated
Facility from 'Crisil BB/Stable
ISSUER NOT COOPERATING')
Inventory Funding 6.24 Crisil B+/Stable (Migrated
Facility from 'Crisil BB/Stable
ISSUER NOT COOPERATING')
Working Capital 0.76 Crisil B+/Stable (Migrated
Term Loan from 'Crisil BB/Stable
ISSUER NOT COOPERATING')
The rating continues to reflect the low operating margin and
leveraged capital structure of the company. These rating weaknesses
are partly offset by the extensive experience of the promoters in
the automotive dealership business and their funding support, and
the moderate scale of operations of the company.
Analytical Approach
Crisil Ratings has evaluated the standalone business and financial
risk profiles of PCPL. Unsecured loans extended by the promoters
and their relatives have been regarded as neither debt nor equity,
as the loans are expected to remain in the business over the medium
term.
Key Rating Drivers & Detailed Description
Weaknesses:
* Low profit margin: Operating margin was modest due to the trading
nature of business, and rose by 76 basis points to 2.28% in fiscal
2024, as against 1.52% in fiscal 2023. The margin is estimated to
remain low in the range of 2-2.5% in fiscal 2025, and going forward
too. Despite improvement in operating margin, the net margin was
muted at 0.27% in fiscal 2024, as against 0.33% in fiscal 2023, due
to higher reliance on external debt to fund inventory.
* Leveraged capital structure: Capital structure was highly
leveraged, marked by adjusted gearing and total outside liabilities
to adjusted networth (TOL/ANW) ratios of 12.25 times and 12.67
times, respectively, as on March 31, 2024. The ratios are estimated
to improve marginally as on March 31, 2025, yet likely to remain
leveraged over the medium term.
Strengths:
* Extensive experience and funding support of the promoters: The
promoters, Mr. Hiralal Gupta and Mr. Avinash Gupta have been
engaged in the automotive dealership business for over three
decades. Longstanding presence has enabled them to gain strong
understanding of local market dynamics and maintain healthy
relationships with suppliers and customers. The promoters have also
extended funding support via capital and unsecured loans.
* Moderate scale of operations: Revenue is estimated to be over
INR550 crore in fiscal 2025, as against INR544.74 crore in fiscal
2024. Scale of operations has grown over the past three years, as
compared to the past, driven by higher demand for passenger
vehicles of Tata Motors Ltd. Further, PCPL has also been allotted a
new dealership for the Gandhinagar area as well.
Liquidity: Stretched
Along with high reliance on the bank limit, the company has also
availed ad-hoc limit at several instances during the year. Current
ratio has remained below unity for the past few years and may
remain at this level even over the medium term. Expected cash
accrual of INR2.5-3.5 crore could be tightly matched against yearly
debt obligation of INR2-3 crore over the medium term.
Outlook: Stable
Crisil Ratings believes PCPL will continue to benefit from the
extensive experience of its promoters in the auto dealership
business and healthy relationship with its principal i.e. Tata
Motors Ltd.
Rating sensitivity factors
Upward factors:
* Improvement in financial risk profile, marked by gearing below 6
times
* Better working capital management, marked by decline in gross
current assets below 45 days, thereby aiding liquidity
Downward factors:
* Decline in revenue or operating margin, leading to
lower-than-envisaged cash accrual
* Stretch in working capital cycle marked by GCAs above 75 days,
thus straining the financial risk profile and liquidity
Ahmedabad-based PCPL was incorporated in November 1999, by Mr.
Hiralal Gupta and Mr. Avinash Gupta. The company runs an authorised
dealership and service centre for passenger cars manufactured by
Tata Motors Ltd. It has showrooms and workshops at Ahmedabad and
Anand, and plans to open a new showroom at Gandhinagar.
S KUMAR: CRISIL Keeps D Debt Ratings in Not Cooperating Category
----------------------------------------------------------------
Crisil Ratings said the ratings on bank facilities of S Kumar
Engineering Industries (SKEI) continue to be 'Crisil D/Crisil D
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1.4 Crisil D (Issuer Not
Cooperating)
Bill Discounting 6 Crisil D (Issuer Not
Cooperating)
Cash Credit 0.6 Crisil D (Issuer Not
Cooperating)
Cash Credit 6 Crisil D (Issuer Not
Cooperating)
Long Term Loan 6 Crisil D (Issuer Not
Cooperating)
Proposed Working 3 Crisil D (Issuer Not
Capital Facility Cooperating)
Proposed Working 3.6 Crisil D (Issuer Not
Capital Facility Cooperating)
Crisil Ratings has been consistently following up with SKEI for
obtaining information through letter and email dated March 12, 2025
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, Crisil
Ratings failed to receive any information on either the financial
performance or strategic intent of SKEI, which restricts Crisil
Ratings' ability to take a forward looking view on the entity's
credit quality. Crisil Ratings believes that rating action on SKEI
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SKEI continues to be 'Crisil D/Crisil D Issuer not cooperating'.
SKEI, established in 2008, is a partnership firm of Mr. P Senthil
Kumar and his brother Mr. P Saravana Kumar. The firm fabricates
steel structural products and manufactures boiler components such
as valves, controllers, pressure gauges, coils, springs, and ducts.
Its manufacturing facility is in Trichy (Tamil Nadu).
S.N.R. TRADERS: CRISIL Keeps B+ Debt Ratings in Not Cooperating
---------------------------------------------------------------
Crisil Ratings said the ratings on bank facilities of S.N.R.
Traders (SNRT) continue to be 'Crisil B+/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 1.9 Crisil B+/Stable (Issuer Not
Cooperating)
Long Term Loan 0.1 Crisil B+/Stable (Issuer Not
Cooperating)
Proposed Working 1.0 Crisil B+/Stable (Issuer Not
Capital Facility Cooperating)
Crisil Ratings has been consistently following up with SNRT for
obtaining information through letter and email dated March 12, 2025
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, Crisil
Ratings failed to receive any information on either the financial
performance or strategic intent of SNRT, which restricts Crisil
Ratings' ability to take a forward looking view on the entity's
credit quality. Crisil Ratings believes that rating action on SNRT
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
SNRT continues to be 'Crisil B+/Stable Issuer not cooperating'.
SNRT was established as a partnership firm in June 2017 by Mr. Rafi
and Mrs Mallikadevi. The firm, based in Chennai, trades in raw and
tanned leather, which it sells to footwear manufacturers in the
Chennai and Vellore regions of Tamil Nadu.
SAMADHAN KENDRA: CRISIL Moves B Debt Rating to Not Cooperating
--------------------------------------------------------------
Crisil Ratings has migrated the rating on bank facilities of
Samadhan Kendra (Samadhan) to 'Crisil B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 2 Crisil B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
Crisil Ratings has been consistently following up with Samadhan for
getting information. Crisil Ratings requested cooperation and
information from the issuer through letter dated March 21, 2025
apart from telephonic and email communication. However, the issuer
has continued to be non-cooperative.
'The Investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on
best-available or limited or dated information on the firm. Such
non-co-operations by a rated entity may be a result of
deterioration in its credit risk profile. The rating with 'ISSUER
NOT COOPERATING' suffix lacks a forward-looking component'.
Detailed Rationale
Despite repeated attempts to engage with the management, Crisil
Ratings failed to receive any information on either the financial
performance or strategic intent of Samadhan which restricts the
ability of Crisil Ratings to take a forward-looking view on the
entity's credit quality. Crisil Ratings believes that the rating
action on Samadhan is consistent with 'Assessing Information
Adequacy Risk'. Therefore, on account of inadequate information and
lack of management cooperation, Crisil Ratings has migrated the
rating on bank facilities of Samadhan to 'Crisil B/Stable Issuer
Not Cooperating'.
Analytical Approach
For arriving at the rating, CRISIL Ratings has assessed the
business and financial risk profiles of Samadhan Kendra on a
standalone basis.
About The Society
Samadhan Kendra was started in 2004 by Mr. Subhash Kumar along with
a few other likeminded youngsters in the area. Initially the focus
was on Raghopur Diyar (a community development block in Vaishali
district). The people based in these areas were very poor; due to
water logging, they had no other option apart from traditional
agriculture practice and dairy for livelihood. Today, Samadhan
Kendra operates in all 16 blocks of Vaishali district. The society
prioritised rural and unreached areas for managing microcredit,
health, and sanitation projects, where target beneficiaries are
from schedule caste and other lower backward castes. The target
groups include women, adolescents, and youth.
SAMARPAN DEVLOPERS: CRISIL Keeps B Ratings in Not Cooperating
-------------------------------------------------------------
Crisil Ratings said the ratings on bank facilities of Samarpan
Devlopers (SD) continue to be 'Crisil B/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft Facility 5 Crisil B/Stable (Issuer Not
Cooperating)
Term Loan 9.5 Crisil B/Stable (Issuer Not
Cooperating)
Crisil Ratings has been consistently following up with SD for
obtaining information through letter and email dated March 11, 2025
among others, apart from telephonic communication. However, the
issuer has remained non cooperative and the rating on bank
facilities of SD continues to be 'Crisil B/Stable Issuer not
cooperating'.
Earlier, the entity did not provide the No Default Statements (NDS)
for the three consecutive months. Therefore, the issuer was
classified as 'non cooperative' in line with Clause 11. 3 of SEBI
CRA Operational Circular dated May 16, 2024.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, Crisil
Ratings failed to receive any information on either the financial
performance or strategic intent of SD, which restricts Crisil
Ratings' ability to take a forward looking view on the entity's
credit quality. Crisil Ratings believes that rating action on SD is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the rating on bank facilities of SD
continues to be 'Crisil B/Stable Issuer not cooperating'.
Established as a partnership firm in 2007 by Mr. Dineshchandra
Mafatlal Shah, Mr. Divyesh Dineshchandra Shah, Ms Premilaben
Dineshchandra Shah and Mr. Amar Dineshchandra Shah, SD develops
residential and commercial real estate in Mehsana.
SAMYAK TRADEX: CRISIL Migrates B+ Debt Rating to Not Cooperating
----------------------------------------------------------------
Crisil Ratings has migrated the rating on bank facilities of Samyak
Tradex LLP (STL) to 'Crisil B+/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 30 Crisil B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Crisil Ratings has been consistently following up with STL for
obtaining information through letter and email dated March 11, 2025
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, Crisil
Ratings failed to receive any information on either the financial
performance or strategic intent of STL, which restricts Crisil
Ratings' ability to take a forward looking view on the entity's
credit quality. Crisil Ratings believes that rating action on STL
is consistent with 'Assessing Information Adequacy Risk'.
Therefore, on account of inadequate information and lack of
management cooperation, Crisil Ratings has migrated the rating on
bank facilities of STL to 'Crisil B+/Stable Issuer not
cooperating'.
STL was incorporated as limited liability firm in 2017, is engaged
in wholesale trading of wide range of minerals (iron ore, dolomite,
marble, laterite etc), scrap (iron & plastics) & re-refined used
oil/waste oil. It also provides logistic services.
STL is owned & managed by Shri Bhavesh Prabhulal Sheth and Shri
Nirav Pradipbhai Mehta.
SARAVANA HI-TECH: CRISIL Keeps B+ Debt Ratings in Not Cooperating
-----------------------------------------------------------------
Crisil Ratings said the ratings on bank facilities of Sri Saravana
Hi-Tech Agro Foods (SSHAF) continue to be 'Crisil B+/Stable Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 Crisil B+/Stable (Issuer Not
Cooperating)
Proposed Long Term 2.5 Crisil B+/Stable (Issuer Not
Bank Loan Facility Cooperating)
Crisil Ratings has been consistently following up with SSHAF for
obtaining information through letter and email dated March 20, 2025
among others, apart from telephonic communication. However, the
issuer has remained non cooperative and the rating on bank
facilities of SSHAF continues to be 'Crisil B+/Stable Issuer not
cooperating'.
Earlier, the entity did not provide the No Default Statements (NDS)
for the three consecutive months. Therefore, the issuer was
classified as 'non cooperative' in line with Clause 11. 3 of SEBI
CRA Operational Circular dated May 16, 2024.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, Crisil
Ratings failed to receive any information on either the financial
performance or strategic intent of SSHAF, which restricts Crisil
Ratings' ability to take a forward looking view on the entity's
credit quality. Crisil Ratings believes that rating action on SSHAF
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
SSHAF continues to be 'Crisil B+/Stable Issuer not cooperating'.
Set up in 2013 as a partnership firm by Mr. M Rajendran and his
family members, SSHAF processes paddy into rice.
SEQUENCE REALTY: CRISIL Withdraws B Rating on INR43cr Term Loan
---------------------------------------------------------------
Crisil Ratings has withdrawn its ratings on the bank facilities of
Sequence Realty (SR) on the request of the company and after
receiving no objection certificate from the bank. The rating action
is in-line with Crisil Rating's policy on withdrawal of its rating
on bank loan facilities.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 43 Crisil B/Stable/Issuer Not
Cooperating (Withdrawn)
Term Loan 22 Crisil B/Stable/Issuer Not
Cooperating (Withdrawn)
Crisil Ratings has been consistently following up with SR for
obtaining information through letter and email dated March 11, 2025
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, Crisil
Ratings failed to receive any information on either the financial
performance or strategic intent of SR. This restricts Crisil
Ratings' ability to take a forward looking view on the credit
quality of the entity. Crisil Ratings believes that rating action
on SR is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, Crisil Ratings has
continued the rating on the bank facilities of SR to 'Crisil
B/Stable Issuer not cooperating'.
SR (a part of the Samanvay group) was set up in 2010 at Vadodara in
Gujarat. The firm undertakes civil construction works, mainly
construction of two- and three-bedrooms-hall-kitchen along with
commercial properties such as showrooms. It is also engaged in real
estate development and is working on a commercial project, Samanvay
Anantam, at Alkapuri in Vadodara. Mr. Ankur Parekh, Mr. Ravi J Rao
and Mr. Vishal K Patel manage the business.
SHUNTY BUNTY: CRISIL Keeps B+ Debt Ratings in Not Cooperating
-------------------------------------------------------------
Crisil Ratings said the ratings on bank facilities of Shunty Bunty
Automobiles Private Limited (SBAPL) continue to be 'Crisil
B+/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 14.75 Crisil B+/Stable (Issuer Not
Cooperating)
Electronic Dealer 10 Crisil B+/Stable (Issuer Not
Financing Scheme Cooperating)
(e-DFS)
Loan Against 2 Crisil B+/Stable (Issuer Not
Property Cooperating)
Term Loan 3.25 Crisil B+/Stable (Issuer Not
Cooperating)
Crisil Ratings has been consistently following up with SBAPL for
obtaining information through letter and email dated March 12, 2025
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, Crisil
Ratings failed to receive any information on either the financial
performance or strategic intent of SBAPL, which restricts Crisil
Ratings' ability to take a forward looking view on the entity's
credit quality. Crisil Ratings believes that rating action on SBAPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
SBAPL continues to be 'Crisil B+/Stable Issuer not cooperating'.
Based in Kanpur, SBAPL was started in October 2004 by Mr. Hari
Kishan Oberoi and is promoted by the Oberoi family. In addition to
dealing with MHCVs, the company sells spares and lubricant oils,
and now owns one sales, spares, and services (3S) in Chakarpur,
Kanpur.
SIISA: CRISIL Keeps D Debt Rating in Not Cooperating Category
-------------------------------------------------------------
Crisil Ratings said the rating on bank facilities of SIISA (part of
the SIISA group) continues to be 'Crisil D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Term Loan 15 CRISIL D (ISSUER NOT
COOPERATING)
Crisil Ratings has been consistently following up with SIISA for
obtaining information through letter and email dated March 12, 2025
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, Crisil
Ratings failed to receive any information on either the financial
performance or strategic intent of SIISA, which restricts Crisil
Ratings' ability to take a forward looking view on the entity's
credit quality. Crisil Ratings believes that rating action on SIISA
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
SIISA continues to be 'Crisil D Issuer not cooperating'.
Established in March 2005 as a partnership firm by Mr. Vasaram
Choudhary and his family members, SIISA operates a retail showroom
in Pune.
SION CERAMICS: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Sion Ceramics
Private Limited (SCPL) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 3.32 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 6.18 CRISIL D (Issuer Not
Cooperating)
Crisil Ratings has been consistently following up with SCPL for
obtaining information through letter and email dated March 12, 2025
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, Crisil
Ratings failed to receive any information on either the financial
performance or strategic intent of SCPL, which restricts Crisil
Ratings' ability to take a forward looking view on the entity's
credit quality. Crisil Ratings believes that rating action on SCPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
SCPL continues to be 'Crisil D Issuer not cooperating'.
Incorporated in 2013, SCPL, promoted by Mr. Pravin Karshan Patel,
Mr. Himalay Narbheram Patel, and Mr. Dilip Prabhu Dangroshiya,
manufactures ceramic wall tiles.
SKYCOMM ELECTRONICS: CRISIL Keeps D Rating in Not Cooperating
-------------------------------------------------------------
Crisil Ratings said the rating on bank facilities of Skycomm
Electronics (India) Private Limited (SEIPL) continues to be 'Crisil
D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL D (ISSUER NOT
COOPERATING)
Crisil Ratings has been consistently following up with SEIPL for
obtaining information through letter and email dated March 12, 2025
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, Crisil
Ratings failed to receive any information on either the financial
performance or strategic intent of SEIPL, which restricts Crisil
Ratings' ability to take a forward looking view on the entity's
credit quality. Crisil Ratings believes that rating action on SEIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
SEIPL continues to be 'Crisil D Issuer not cooperating'.
SEIPL, incorporated in 2012, is an authorised distributor of
Samsung's electronic appliances (except mobiles and light-emitting
diodes) in Andhra Pradesh and Telangana; it is also an authorised
dealer for Godrej's washing machines and refrigerators in
Hyderabad.
SPARK CONDUCTORS: CRISIL Reaffirms B+ Rating on INR4cr Cash Loan
----------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable/CRISIL A4'
ratings on the bank facilities of Spark Conductors Pvt Ltd (SCPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4 CRISIL B+/Stable (Reaffirmed)
Letter of credit 3.25 CRISIL A4 (Reaffirmed)
& Bank Guarantee
Proposed Long Term 0.92 CRISIL B+/Stable (Reaffirmed)
Bank Loan Facility
Term Loan 0.83 CRISIL B+/Stable (Reaffirmed)
Crisil Ratings has been consistently following up with SCPL for
obtaining information through letter and email dated March 11, 2025
among others, apart from telephonic communication. However, the
issuer has remained non cooperative and the ratings on bank
facilities of SCPL continues to be 'Crisil B+/Stable/Crisil A4
Issuer not cooperating'.
Earlier, the entity did not provide the No Default Statements (NDS)
for the three consecutive months. Therefore, the issuer was
classified as 'non cooperative' in line with Clause 11. 3 of SEBI
CRA Operational Circular dated May 16, 2024.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, Crisil
Ratings failed to receive any information on either the financial
performance or strategic intent of SCPL, which restricts Crisil
Ratings' ability to take a forward looking view on the entity's
credit quality. Crisil Ratings believes that rating action on SCPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SCPL continues to be 'Crisil B+/Stable/Crisil A4 Issuer not
cooperating'.
SCPL was incorporated in 2009. The company is owned and managed by
Mr. Pasupuleti Bheemudu and Mrs Pasupuleti V Ramani. It
manufactures aluminum conductors and cables and the manufacturing
facility is in Hyderabad.
SPARK REALTY: CRISIL Keeps B+ Debt Rating in Not Cooperating
------------------------------------------------------------
Crisil Ratings said the rating on bank facilities of Spark Realty
(SR) continues to be 'Crisil B+/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Term Loan 12 Crisil B+/Stable (Issuer Not
Cooperating)
Crisil Ratings has been consistently following up with SR for
obtaining information through letter and email dated March 12, 2025
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, Crisil
Ratings failed to receive any information on either the financial
performance or strategic intent of SR, which restricts Crisil
Ratings' ability to take a forward looking view on the entity's
credit quality. Crisil Ratings believes that rating action on SR is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the rating on bank facilities of SR
continues to be 'Crisil B+/Stable Issuer not cooperating'.
Set up in 2013 as a proprietorship concern by Mr. Suresh Kumar
Bhalotiya, SR undertakes residential and commercial real estate
development in Pune. It is currently developing a residential
project, Spark Urban Bliss, in Wagholi, Pune; and a 5-star resort,
Spark Heaven, in Chikhaldara, Maharashtra.
TONOY HOSPITALITY: CRISIL Assigns B+ Rating to INR11cr Term Loan
----------------------------------------------------------------
Crisil Ratings has assigned its 'Crisil B+/Stable' rating to the
long-term bank facility of Tonoy Hospitality Pvt Ltd (THPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 11 Crisil B+/Stable (Assigned)
The rating reflects THPL's exposure to risks related to its ongoing
project and expected leveraged capital structure. These weaknesses
are partially offset by the extensive experience and established
entrepreneurial capability of the promoters.
Analytical Approach
Crisil Ratings has evaluated the standalone business and financial
risk profiles of THPL.
Key Rating Drivers & Detailed Description
Weaknesses:
* Exposure to risks related to the ongoing project: THPL is
scheduled to commence its project in September 2025. Demand risk is
also expected to be high as the industry is highly fragmented
driven by low entry barriers with small capital and technological
requirements. Also, the company will be exposed to intense
competition from other players in the segment, especially chain
brand hotels in Guwahati. Timely completion and successful
stabilization of its operations at the new unit will remain a key
rating sensitivity factor.
* Expected leveraged capital structure: THPL is likely to have
average financial risk profile with high gearing and modest debt
protection metrics. The project is aggressively funded through a
debt-equity ratio of 1.65 times.
Strength:
* Extensive experience and entrepreneurial capability of the
promoters: The promoters have experience of around two decades and
are well connected in the region. They have also established a
successful track record as entrepreneurs and management. This has
given them an understanding of the market dynamics and enabled them
to establish relationships with key stakeholders.
Liquidity: Stretched
Annual cash accrual is expected to be over INR1-1.5 crore against
yearly term debt obligation of INR0.3-0.8 crore over the medium
term and will cushion liquidity. The current ratio was low as on
March 31, 2025.
Outlook: Stable
Crisil Ratings believes THPL will benefit from its promoters'
extensive industry experience.
Rating sensitivity factors
Upward factors:
* Timely commencement of the project, with revenue of around INR3
crore and adequate profitability
* Improvement in the financial risk profile.
Downward factors:
* Considerable delay in the commencement of its operations, leading
to net cash accrual to debt obligation below 1 time
* Significant cost overrun exerting pressure on financial
flexibility
Incorporated in 2023, THPL is setting up a 4-star resort in
Guwahati, Assam. The resort has 48 rooms, a banquet hall with an
open lawn, two restaurants, a bar, a swimming pool with a deck and
a spa. THPL is owned and managed by Ripul Baruah and Smitakhi
Baruah.
V. J. GOTE: CRISIL Withdraws B+ Rating on INR7.5cr Cash Loan
------------------------------------------------------------
Crisil Ratings has withdrawn its ratings on the bank facilities of
V. J. Gote Brothers (VJGB) on the request of the company and after
receiving no objection certificate from the bank. The rating action
is in-line with Crisil Rating's policy on withdrawal of its rating
on bank loan facilities.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 2 Crisil A4/Issuer Not
Cooperating (Withdrawn)
Cash Credit 7.5 Crisil B+/Stable/Issuer Not
Cooperating (Withdrawn)
Proposed Working 0.5 Crisil B+/Stable/Issuer Not
Capital Facility Cooperating (Withdrawn)
Crisil Ratings has been consistently following up with VJGB for
obtaining information through letter and email dated February 7,
2025 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, Crisil
Ratings failed to receive any information on either the financial
performance or strategic intent of VJGB. This restricts Crisil
Ratings' ability to take a forward-looking view on the credit
quality of the entity. Crisil Ratings believes that rating action
on VJGB is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of VJGB continues to be 'Crisil B+/Stable/Crisil A4
Issuer Not Cooperating'.
Incorporated in 1996, VJGB is promoted by Mr. Natraj Gote. The firm
constructs roads, drains, and small bridges, and undertakes other
civil contract work for customers such as Indian Railways, Public
Works Department, and Pune Municipal Corporation.
=================
I N D O N E S I A
=================
MEDCO ENERGI: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable
--------------------------------------------------------------
Fitch Ratings has affirmed PT Medco Energi Internasional Tbk's
Long-Term Issuer Default Rating (IDR) at 'BB-'. The Outlook is
Stable. The agency has also affirmed the ratings on the senior
unsecured US dollar notes guaranteed by Medco at 'BB-'.
Medco's credit profile is characterised by an average production
scale relative to 'BB' category upstream oil and gas (O&G)
producers, a low-cost position and favorable earnings mix through
fixed-price contracts. The Stable Outlook is supported by Medco's
ability to generate free cash flow and maintain adequate
liquidity.
Key Rating Drivers
Small Reserve Base: Medco's reserve base of 354 million barrels of
oil equivalent (mmboe) at end-2024 are smaller than those of
similarly rated peers. Fitch expects Medco's proven reserve (1P)
life to remain adequate at about six to seven years over the next
two years (2024: 7.5 years), based on additions from existing
projects and investments in exploration and development.
Its Tanzania LNG project has potential to nearly double the
company's 1P reserves over the next three to four years and extend
reserve life. However, the timing of reserve accruals for this
project depends on regulatory approvals.
Gas Contracts Underpin Stability: Medco's earnings are less
sensitive to oil price changes as 60%-70% of its future production
will be gas, with over half sold via long-term, fixed-price
contracts with take-or-pay protections. This is in contrast to
peers with high exposure to benchmark prices. The gas contracts
mitigate price and volume risk.
About 35%-40% of Medco's O&G business EBITDA will be via
fixed-price contracts. The EBITDA from fixed-price gas contracts is
likely to remain at 1.3-1.5x consolidated interest expenses until
2028 (2024: 1.8x).
Concentration in Corridor Block: Fitch expects Medco to produce
about 145 thousand barrels of oil equivalent per day (mboepd)
(2024: 152 mboepd), driven by its existing projects. Around 80% of
Medco's total O&G production is from Indonesia. Fitch expects its
largest single block—the Corridor Block in Indonesia—to
contribute about 30% of total volume on average over the next three
to four years (2024: 38%). This risk is mitigated by the Corridor
Block's lower cash cost of less than USD8/boe.
Rated on Consolidated Approach: Fitch rates Medco on a consolidated
basis, including operations outside the restricted group (RG) as
defined in its bond documents. Medco Power Indonesia (MPI) is
outside the RG. Fitch sees there is high incentive for Medco to
provide support to this leveraged wholly owned power business,
which also shares a common brand.
Sufficient Rating Headroom: Fitch expects Medco's consolidated
EBITDA net leverage to increase to 2.8x during 2025-2028 (2024:
2.3x), mainly due to capex growth while EBITDA declines on lower
oil prices. The lower EBITDA will be buffered by fixed-price gas
contracts in its portfolio. Medco operates most of its projects,
which gives it some flexibility to adjust operating and capital
expenditure during periods of sharp price correction.
Debt-Funded M&A as Event Risk: Fitch expects Medco to continue to
pursue acquisitions as part of its strategy to replenish reserves,
in line with its long-term goal of maintaining its current scale.
Fitch sees significant acquisitions funded by debt as event risk
due to uncertainties regarding the timing and pricing of these
transactions. Medco funded previous acquisitions with a combination
of cash and debt.
Internal Cash Generation Supports Capex: On a consolidated level,
Fitch expects Medco to able to generate positive FCF over the
medium term, in the absence of large new investments. Medco plans
capex of around USD1.3 billion for the O&G business in 2025-2028,
mostly for development projects and drilling at Oman Block 60,
which will be funded through internal cash generation.
Leveraged Power Business: MPI had high EBITDA net leverage of
around 10x at end-2024. The power business has been self-funded
thus far, relying on domestic bonds and term loans to finance its
projects. However, Fitch expects MPI to require new financing to
support on-going growth capex and initial investments for its Bulan
solar power supply project, held by MPI's JV.
Potential Large Investments: Medco's LNG project in Tanzania and
its JV's interest in Bulan (reported overall project cost of USD3
billion) are large and would increase capex substantially upon
reaching their final investment decisions. Fitch thinks Medco's
associate stake in PT Amman Mineral Internasional Tbk, which has
current market valuation of about USD6 billion, provides
substantial flexibility as Medco can monetise the stake to offset
higher leverage arising from these investments.
Limited Information on Shareholder: Medco's majority shareholder,
PT Medco Daya Abadi Lestari, is privately held by the Panigoro
family with limited information publicly available. However, Fitch
believes the majority shareholder's access to Medco's cash is
limited to shareholder returns, as Medco is listed with public
shareholders. Material related-party transactions with the parent
are also subject to disclosure requirements and approval from
independent shareholders.
Peer Analysis
Medco has a greater share of fixed-price contracts than Canada's
Vermilion Energy Inc. (BB-/Negative). Vermilion has broader
geographic diversity, while Medco derives 80% of its volume from
domestic assets. Fitch expects Vermilion's scale to expand after
its announced acquisition of Westbrick Energy Ltd, narrowing the
gap with Medco. The Negative Outlook on its rating reflects its
impaired liquidity profile and higher debt level.
Colombia's GeoPark Limited (B+/Stable) has a stronger financial
profile, with EBITDA net leverage of around 1x, but its rating is
constrained by its small size. Medco's production scale of 150
mboepd is about three times that of GeoPark's 35 mboepd-40 mboepd.
The presence of fixed-price contracts also gives Medco higher
earnings visibility. Medco and GeoPark share similar reserve lives
of about seven years and benefit from low-cost positions.
Key Assumptions
- Brent crude prices of USD65/barrel in 2025 - 2027 and USD60 in
2028
- Gas prices in line with fixed-price contracts, where applicable
- Total production volume of around 145 mboepd on average in
2025-2028
- Average production and lifting costs between USD8.5-9.0/boe
- O&G capex averaging at around USD320 million a year and power
capex averaging around USD80 million a year in 2025-2028,
- Annual dividend payout at 25% of net income
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Sustained deterioration in 1P reserve base to below 300 million
barrels
- Material decline in fixed-price gas contracts in Medco's EBITDA
mix
- Consolidated EBITDA net leverage at above 3.3x
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Average daily production approaching 175 mboepd, while growing 1P
reserve base to 500 million bbl and
- Consolidated EBITDA net leverage, below 2.3x
- Better clarity on company's strategy for upcoming investments
Liquidity and Debt Structure
At end-2024, Medco's available cash of USD696 million is sufficient
to cover its short-term debt of USD429 million. Fitch expects Medco
to undertake refinancing for its existing borrowings. Medco
actively manages its debt maturity profile and has a history of
refinancing bond maturities well in advance through multiple tender
offers and open market purchases. Medco's 20.92% stake in listed
Amman provides additional financial flexibility to the company.
Issuer Profile
Medco is an Indonesian upstream O&G company, with some producing
assets in Oman and Thailand. It produced 152 mboepd of O&G in 2024.
Medco also holds a 20.92% investment stake in Amman.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING
Medco Daya Abadi Lestari is privately held with limited information
publicly available. However, Fitch believes the majority
shareholder's access to Medco's cash is limited to shareholder
returns, as Medco is listed with public shareholders. Material
related-party transactions with the parent are also subject to
disclosure requirements and approval from independent shareholders.
These factors allow us to rate Medco despite the lack of detailed
information about the parent.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
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.
Entity/Debt Rating Prior
----------- ------ -----
PT Medco Energi
Internasional Tbk LT IDR BB- Affirmed BB-
Medco Oak Tree
Pte. Ltd.
senior unsecured LT BB- Affirmed BB-
Medco Bell Pte. Ltd.
senior unsecured LT BB- Affirmed BB-
Medco Maple Tree
Pte. Ltd.
senior unsecured LT BB- Affirmed BB-
Medco Laurel Tree
Pte. Ltd.
senior unsecured LT BB- Affirmed BB-
=========
J A P A N
=========
NISSAN MOTOR: Fitch Lowers LongTerm IDR to 'BB', Outlook Negative
-----------------------------------------------------------------
Fitch Ratings has downgraded Nissan Motor Co., Ltd.'s Long-Term
Foreign- and Local-Currency Issuer Default Ratings (IDRs) and
senior unsecured rating to 'BB' from 'BB+'. The Outlook is
Negative. Fitch has affirmed the Short-Term Foreign- and
Local-Currency IDRs at 'B'.
The downgrade reflects worsening market conditions in North America
and increasing cost pressures due to newly imposed US tariffs on
the automotive sector. Fitch now forecasts Nissan's auto EBIT and
FCF will remain negative for a second year in the fiscal year
ending March 2026 (FYE26), before recovering to breakeven in FYE27,
against its previous forecast of breakeven EBIT and FCF in FYE26.
Although Fitch expects Nissan's performance to recover in the
medium term as restructuring charges reduce and new model launches
ramp up, the company has exhausted its rating headroom to absorb
related short-term shocks and a potential decline in production
volumes.
The Negative Outlook reflects the deteriorating industry
environment. Nissan may benefit from rising vehicle prices and
tight supply due to its strengths in entry SUV and sedan models,
and mass-market pricing. However, macroeconomic uncertainties could
complicate Nissan's planned turnaround.
Key Rating Drivers
Macro Uncertainties, Higher Downside Risk: Tariffs announced by the
US administration on auto imports are likely to lead to production
cuts and increased costs, affecting automotive issuers'
profitability and weakening consumer demand. Following Fitch's
updated Global Economic Outlook in April 2025, Fitch has revised
its US light vehicle sales assumption down to 15.2 million from
16.3 million earlier this year. As a result, Fitch has changed its
2025 outlook for the global automotive sector to 'deteriorating'
from 'neutral'.
Tariffs to Hit Operating Profit: Fitch estimates the 25% tariff on
US imports from outside North America and an average 20% on imports
from Mexico and Canada to cause EBIT margin to drop by 230bp in
FYE26. Nissan manufactures half of its US sales outside the
country, which leaves it highly exposed to uncertainties over
implementation of tariffs in the US. Fitch also assumes a 2%
decline in the company's consolidated unit sales in FYE26.
Mitigation Measures: Nissan has reduced its capacity utilisation
through FYE25 to tackle its inventory problem and may shift
production to the US by tapping idle capacities there. However, the
production shift will be gradual and require additional costs,
while production costs are likely to be higher there, adding to
profitability pressures.
Additional Restructuring: Nissan announced a restructuring plan
that includes reducing production capacity, headcount and expenses
to offset the increased costs in FYE25. Management, led by new CEO
Ivan Espinosa, is expected to announce additional cost-reduction
measures in May 2025, which will bolster earnings and cash
generation. However, Fitch believes these measures will weigh on
profitability and cash flow in the short term and will take at
least a couple of years before having a net positive effect on
FCF.
Solid Capital Structure: Fitch expects Nissan's capital structure
to remain in line with those of higher-rated peers. Nissan's
Financial Structure and Financial Flexibility are assessed at
'bbb-' and 'a-', respectively, in Fitch's Rating Navigator for the
industry. These support the company's rating while auto
profitability is weak. Profitability from FYE27 should benefit from
its restructuring.
Long-Term Strategy Unclear: Although Honda Motor Co., Ltd.
(A/Stable) and Nissan ended discussions for a merger on 13
February, the two companies, along with Mitsubishi Motors
Corporation, maintain their alliance for electrification. The
alliance is poised to significantly accelerate investment and
development in electric vehicles by leveraging shared technology
and economies of scale. This is particularly important for Nissan,
which has a smaller scale in the auto industry and lags competitors
in battery electric vehicle sales.
Fitch does not anticipate the new management to significantly alter
Nissan's general strategy of focusing on the alliance, regional
strengths and brands. Consequently, Fitch expects the business
profile to remain broadly unchanged from FYE25 to FYE28.
Business Profile Intact: Nissan's business profile is solid for its
ratings. Although its sales volumes and market share have reduced
since the restructuring in 2020, it maintains competitive positions
in various markets and subsectors in the global auto market. The
company's large scale and strong diversification also support its
business profile.
Peer Analysis
On a standalone basis, Nissan is smaller than General Motors
Company (BBB/Positive), Ford Motor Company (BBB-/Stable),
Stellantis N.V. (BBB/Stable), and Hyundai Motor Company
(A-/Stable). It is comparable to the automotive operations of
Honda, although Honda benefits from its strong motorcycle
operations. However, Nissan's alliance with equity-accounted
affiliate Mitsubishi Motors, Renault, and potentially Honda
provides substantial capacity for economies of scale and
synergies.
Nissan's brand positioning is moderately weaker than that of its
rated global peers. Nonetheless, Fitch believes Nissan's product
and geographic diversification, along with its competitive
positions in the global auto market, supports its market share and
revenue scale. Nissan is more similar in market position and
diversification to Ford and Stellantis.
Recently, Nissan's credit profile has been weaker than that of
global auto manufacturers in the 'BBB' category, such as GM, Ford
and Stellantis. Nissan's operating and FCF margins have been lower
and are currently weak for its rating. However, its low leverage
and maintenance of a net cash position are considered strong for
its current rating and compare well with higher-rated peers.
Key Assumptions
Fitch's Key Assumptions Within its Rating Case for the Issuer
- 2% decline in consolidated unit sales in FYE26, followed by 0.9%
growth in FYE27 and 0% in FYE28.
- 25% tariff for imports into the US from outside North America,
and an average 20% for imports from Mexico and Canada.
- Initial 80% absorption of tariff costs and gradual decline (i.e.,
price increase) over the years.
- Gradual production shift from Japan and Mexico to the US in FYE26
and FYE27.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade:
- Failure to establish a clear trend towards breakeven in operating
profit and FCF in the auto segment, excluding non-recurring
restructuring charges, by FYE27.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade:
- The Outlook will be revised to Stable if the negative
sensitivities are not met.
Liquidity and Debt Structure
Fitch expects Nissan's auto segment to maintain a net cash position
with about JPY1 trillion-1.3 trillion of cash and cash equivalents
between FYE26 and FYE28, despite the large negative FCF Fitch
forecasts in FYE26. Its forecast does not include any cash inflow
from asset disposals. Nissan also has an unused committed line of
over JPY1.5 trillion, which supports both its auto and sales
financing arms.
Fitch sets aside JPY281 billion of cash in its financial
projections — equivalent to 2.5% of auto segment revenue — as a
reserve for seasonal working capital, as it is not immediately
accessible. Additionally, Fitch deducted JPY182.1 billion from cash
and cash equivalents of the Nissan parent/auto segment and
allocated it to financial services.
Issuer Profile
Nissan is a leading global automobile manufacturer. It was Japan's
fourth-largest automaker by sales volume in 2023 and ninth-largest
worldwide, based on data from Wards Intelligence.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
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.
Entity/Debt Rating Prior
----------- ------ -----
Nissan Motor Co., Ltd. LT IDR BB Downgrade BB+
ST IDR B Affirmed B
LC LT IDR BB Downgrade BB+
LC ST IDR B Affirmed B
senior unsecured LT BB Downgrade BB+
===============
M A L A Y S I A
===============
GREENPRO CAPITAL: Reports $726K Net Loss in 2024
------------------------------------------------
Greenpro Capital Corp. filed with the U.S. Securities and Exchange
Commission its Annual Report on Form 10-K for the fiscal year ended
Dec. 31, 2024.
As of and for the year ended December 31, 2024, the Company
recorded a net loss of $725,827, compared to a net income of
$1,049,699 in 2023, an accumulated deficit of $37,264,379 and a
negative cash flow of $1,360,454 in operating activities.
"We expect we may incur operating losses and negative operating
cash flows for the near future, and we may not achieve
profitability," said Greenpro Capital. "We also expect we may
experience negative cash flow for the near future due to operating
losses and capital expenditure. As a result, we will need to
generate significant revenues to achieve and maintain
profitability. We may not be able to generate sufficient revenues
or achieve profitability in the future. Our failure to achieve or
maintain profitability could negatively impact the value of our
business."
Kuala Lumpur, Malaysia-based JP Centurion & Partners, the Company's
auditor since 2021, issued a "going concern" qualification in its
report dated Apr. 9, 2025, attached to the Company's Annual Report
on Form 10-K for the year ended Dec. 31, 2024, citing that for the
years ended December 31, 2024, the Company incurred a negative cash
flow from operating activities of $1,360,454 and as of December 31,
2024, the Company incurred an accumulated deficit of $37,264,379.
These conditions raise substantial doubt about the Company's
ability to continue as a going concern.
The Company's ability to continue as a going concern is dependent
upon improving its profitability and the continuing financial
support from its major shareholders. Management believes the
existing shareholders or external financing will provide additional
cash to meet the Company's obligations as they become due. No
assurance can be given that any future financing, if needed, will
be available or, if available, that it will be on terms that are
satisfactory to the Company. Even if the Company can obtain
additional financing, if needed, it may contain undue restrictions
on its operations, in the case of debt financing, or cause
substantial dilution for its stockholders, in the case of equity
financing.
A full-text copy of the Company's Form 10-K is available at:
https://tinyurl.com/4mtws6tk
About Greenpro Capital Corp.
Kuala Lumpur, Malaysia-based Greenpro Capital Corp. provides
cross-border business solutions and accounting outsourcing services
to small and medium-sized businesses located in Asia, with an
initial focus on Hong Kong, China, and Malaysia. Greenpro offers a
range of services as a package solution to its clients, believing
that this approach can reduce business costs and improve revenues.
As of Dec. 31, 2024, the Company had $6,473,923 in total assets,
$1,279,635 in total liabilities, and a total stockholders' equity
of $5,194,288.
LYC HEALTHCARE: Pays MYR600,000 Outstanding Claims With Petitioner
------------------------------------------------------------------
The Edge Malaysia reports that ACE-Market listed LYC Healthcare Bhd
has made the full payment of MYR600,000 to SOG Mummy & Baby Centre
Pte Ltd, which had served a winding-up petition to the company.
In a bourse filing on April 25, LYC Healthcare said that the
outstanding claim was paid in full on April 24. As such, there is
no longer an outstanding claimed amount.
"The company has appointed solicitors to engage the petitioner's
solicitors in managing a withdrawal of the petition," the company
said in a bourse filing on April 25, The Edge relays.
Just a day earlier, LYC Healthcare announced that it had received a
winding-up petition from SOG Mummy on April 23, as it sought an
order to wind up LYC Healthcare, appoint an official receiver as
liquidator and recover costs from the company's assets.
The Edge, citing the petition, says the amount owed amounting to
MYR600,000 is related to instalment payments due under a settlement
reached in December 2024, which had been subsequently restructured
by both SOG Mummy and LYC Healthcare.
LYC Healthcare was loss-making in the past nine financial years.
For the nine months ending Dec. 31, 2024 (9MFY2025), the group
posted a total net loss of MYR8.69 million compared with a net loss
of MYR10.26 million a year ago, while revenue increased 28% to
MYR121.71 million from MYR94.97 million in 9MFY2024, The Edge
discloses.
As of end 2024, its total cash and bank balances stood at MYR20.18
million, compared to total borrowings of MYR74.66 million.
On April 24, LYC Healthcare's shares dropped 0.5 sen or 8.3% to
close at 5.5 sen, bringing the company's market capitalisation to
MYR40.7 million, The Edge discloses. Year-to-date, the stock has
declined by 50%.
LYC Healthcare Berhad provides health care services primarily in
Malaysia and Singapore.
REACH ENERGY: Bursa Reprimands, Fines Six Directors
---------------------------------------------------
The Edge Malaysia reports that Bursa Malaysia Securities Bhd has
publicly reprimanded Reach Energy Bhd and seven directors, for
failing to promptly announce that the company had triggered the
Practice Note 17 (PN17) criteria under listing rules, after its
auditors raised concerns about its ability to continue as a going
concern.
Six of the directors have also been fined MYR50,000 each, according
to Bursa in a statement on April 25.
The Edge relates that Bursa said the breach occurred when the
company failed to make the first announcement of its PN17 status
"immediately upon the release of its fourth quarterly report for
the financial period ended Dec. 31, 2022 (4QFP2022) on Feb. 28,
2023".
There was no reasonable explanation for the delay in making the
announcement, especially given the clear guidelines in the Main
Market Listing Requirements, Bursa said, The Edge relays.
Reach Energy triggered the PN17 criteria because its external
auditors had highlighted a material uncertainty related to its
ability to continue as a going concern in its audited financial
statements for the financial year ended Dec. 31, 2021 (FY2021),
issued on April 29, 2022.
Reach Energy's report for 4QFP2022 had also revealed that Reach
Energy's consolidated shareholders' equity stood at MYR111.29
million, representing only 22.8% of its share capital of MYR488.98
million as at end-2022, down from 62% as at end-2021, The Edge
discloses.
Despite having already triggered the PN17 criteria when it released
its report for 4QFP2022, Reach Energy only announced its PN17
status about a month later - on April 3, 2023 - following
engagement with Bursa on March 31, 2023.
The seven who were directors at Reach Energy at the time were also
reprimanded because they permitted the group to commit the breach,
said Bursa, according to The Edge.
Five of them have resigned on March 29, 2023, namely: Tunku Datuk
Nooruddin Tunku Shahabuddin (formerly Reach Energy's executive
director); Nik Din Nik Sulaiman, Datuk Jasmy Ismail and Datin Noor
Lily Zuriati Abdullah (independent non-executive directors); and
Izlan Izhab (senior independent non-executive director).
Two are still with the group: non-independent non-executive
chairman Tan Sri Dr Azmil Khalili Khalid and independent
non-executive director Yusoff Hassan, The Edge notes.
With the exception of Izlan, all were fined MYR50,000 each. "No
fine was imposed on Izlan Izhab due to personal adverse/extenuating
circumstances," Bursa said.
According to The Edge, Bursa said this is a serious breach as the
first announcement is crucial for shareholders and investors, as
the PN17 status indicates a company is under financial distress,
which could lead to suspension and delisting if the financial
condition is not regularised within the stipulated timeframe.
"Timely disclosure" of PN17 classification is therefore vital for
informed investment decisions, it said.
Company directors, it added, should not solely rely on management
or external auditors to flag potential PN17 triggers but must
exercise robust oversight and ensure compliance with all applicable
regulations, especially in light of clear financial indicators of
distress, adds The Edge.
About Reach Energy
Headquartered in Kuala Lumpur, Malaysia, Reach Energy Berhad, an
investment holding company, engages in the exploration,
development, production, and sale of crude oil and other petroleum
products in the Republic of Kazakhstan, Malaysia, and
internationally. The company holds a 100% working interest in the
Emir-Oil concession block covering an area of approximately 850.3
square kilometers located in the Mangystau Oblast in the
southwestern region of the Republic of Kazakhstan. It also
exports.
On April 3, 2023, Reach Energy Bhd fell into the Practice Note
(PN17) category. The company has triggered Paragraph 2.1(e) of PN17
of the Bursa Malaysia Securities Bhd in respect of the company's
unaudited financial statements for the financial year ended Dec.
31, 2022 (FY2022). Additionally, the company's shareholders'
equity on a consolidated basis is 50% or less of its share capital
as announced on Feb. 28, 2023.
=====================
N E W Z E A L A N D
=====================
CARING CARD: Court to Hear Wind-Up Petition on May 30
-----------------------------------------------------
A petition to wind up the operations of The Caring Card Company
2022 Limited will be heard before the High Court at Auckland on May
30, 2025, at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on March 26, 2025.
The Petitioner's solicitor is:
Hosanna Tanielu
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
DENHEATH CORP: Court to Hear Wind-Up Petition on May 10
-------------------------------------------------------
A petition to wind up the operations of Denheath Corporation
Limited will be heard before the High Court at Timaru on May 10,
2025, at 10:00 a.m.
Diane Lesley Kenton and Gordon Charles Kenton filed the petition
against the company on March 5, 2025.
The Petitioner's solicitor is:
Michael Richard Walker
Todd & Walker Law
Level 2, 36 Grant Road
Queenstown 9371
DIRECT PROPERTY: Creditors' Proofs of Debt Due on June 11
---------------------------------------------------------
Creditors of Direct Property Services Limited are required to file
their proofs of debt by June 11, 2025, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on April 23, 2025.
The company's liquidator is:
Thomas Lee Rodewald
C/- BDO Tauranga Limited
Level 1, The Hub
525 Cameron Road
PO Box 15660
Tauranga 3144
EELAM TRADERS: Court to Hear Wind-Up Petition on May 2
------------------------------------------------------
A petition to wind up the operations of Eelam Traders Limited will
be heard before the High Court at Auckland on May 2, 2025, at 10:00
a.m.
Concourse (2021) Limited filed the petition against the company on
Feb. 7, 2025.
The Petitioner's solicitor is:
Daniel Mark Hughes
Anthony Harper
Level 34, ANZ Centre
23–29 Albert Street
PO Box 2646
Auckland
GIRAFFE GROUP: Creditors' Proofs of Debt Due on June 2
------------------------------------------------------
Creditors of The Giraffe Group New Zealand Limited, Double O
Transport Limited and Jedik Electrical Limited are required to file
their proofs of debt by June 2, 2025, to be included in the
company's dividend distribution.
The Giraffe Group New Zealand Limited commenced wind-up proceedings
on April 8, 2025.
Double O Transport Limited commenced wind-up proceedings on April
11, 2025.
Jedik Electrical Limited commenced wind-up proceedings on April 16,
2025.
The company's liquidators are:
Garry Whimp
Benjamin Francis
Blacklock Rose Limited
PO Box 6709
Victoria Street West
Auckland 1142
===============
P A K I S T A N
===============
PAKISTAN: Requests Extra CNY10 Billion on China Swap Line
---------------------------------------------------------
Reuters reports that Pakistan has put in a request to China to
augment its existing swap line by CNY10 billion (US$1.4 billion),
Finance Minister Muhammad Aurangzeb said, adding he expected the
country would launch a Panda bond before year-end.
Pakistan has an existing CNY30 billion swap line already, Aurangzeb
told Reuters in an interview on the sidelines of the International
Monetary Fund and World Bank Group spring meetings in Washington.
"From our perspective, getting to 40 billion renminbi would be a
good place to move towards . . . we just put in that request,"
Aurangzeb said.
According to Reuters, China's central bank has been promoting
currency swap lines with a raft of emerging economies, including
the likes of Argentina and Sri Lanka.
Reuters says Pakistan has also made progress on issuing its first
panda bond - debt issued on China's domestic bond market,
denominated in yuan. Talks with the presidents of the Asian
Infrastructure Investment Bank (AIIB) and Asian Development Bank
(ADB) - the two lenders who are in line to provide credit
enhancements for the issue - had been constructive, he said.
"We want to diversify our lending base and we have made some good
progress around that - we are hoping that during this calendar year
we can do an initial print," he said.
Meanwhile, Aurangzeb expected the IMF executive board to sign off
in early May on the Staff Level Agreement on its new $1.3 billion
arrangement under a climate resilience loan program as well as the
first review of the ongoing $7 billion bailout program, Reuters
relays.
Getting the green light from the IMF board would trigger a $1
billion payout under the programme, which the country secured in
2024 and has played a key role in stabilizing Pakistan's economy.
Asked about the economic fallout from the tensions with India
following the killing of 26 men at a tourist site earlier this
month, Aurangzeb said it was "not going to be helpful."
Reuters relates that the attack triggered outrage and grief in
India, along with calls for action against neighbour Pakistan, whom
New Delhi accuses of funding and encouraging terrorism in Kashmir,
a region both nations claim and have fought two wars over.
After the attack, India and Pakistan unleashed a raft of measures
against each other, with Pakistan closing its airspace to Indian
airlines and suspending trade ties, and India suspending the 1960
Indus Waters Treaty that regulates water-sharing from the Indus
River and its tributaries.
Trade flows between the two countries had already fallen off
sharply following past frictions and totalled just $1.2 billion
last year.
Aurangzeb estimated growth around 3% in the current financial year
which ends in June 2025, and in the 4-5% range next year, with a
view to hitting 6% thereafter, Reuters adds.
About Pakistan
Pakistan is a country located in South Asia. It has a coastline
along the Arabia Sea and the Gulf of Oman and is bordered by
Afghanistan, China, India, and Iran. Pakistan's capital is
Islamabad.
As reported in the Troubled Company Reporter-Asia Pacific on April
21, 2025, Fitch Ratings has upgraded Pakistan's Long-Term
Foreign-Currency Issuer Default Rating (IDR) to 'B-' from 'CCC+'.
The Outlook is Stable.
=================
S I N G A P O R E
=================
CKR CONTRACT: Court Enters Wind-Up Order
----------------------------------------
The High Court of Singapore entered an order on March 10, 2025, to
wind up the operations of CKR Contract Services Pte. Ltd.
Greenmark Construction Pte. Ltd filed the petition against the
company.
The company's liquidators are:
Lau Chin Huat
Yeo Boon Keong
C/O Technic Inter-Asia Pte Ltd
50 Havelock Road
#02-767 The Beo Crescent
Singapore 160050
DIAMOND AND SPADE: Court Enters Wind-Up Order
---------------------------------------------
The High Court of Singapore entered an order on April 4, 2025, to
wind up the operations of Diamond and Spade Pte. Ltd.
Maybank Singapore Limited filed the petition against the company.
The company's liquidator is:
Mr. Gary Loh Weng Fatt
c/o BDO Advisory Pte. Ltd.
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
FORTUNE SOVEREIGN: Court Enters Wind-Up Order
---------------------------------------------
The High Court of Singapore entered an order on April 4, 2025, to
wind up the operations of Fortune Sovereign Investments Pte. Ltd.
Maybank Singapore Limited filed the petition against the company.
The company's liquidator is:
Mr. Gary Loh Weng Fatt
c/o BDO Advisory Pte. Ltd.
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
GEC 3: Creditors' Proofs of Debt Due on May 19
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Creditors of GEC 3 Pte. Ltd. are required to file their proofs of
debt by May 19, 2025, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on April 10, 2025.
The company's liquidator is:
Jason Aleksander Kardachi
Kroll Pte Ltd
10 Collyer Quay
#05-04/05 Ocean Financial Centre
Singapore 049315
GREAT CONNECTION: Creditors' Proofs of Debt Due on May 18
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Creditors of Great Connection System Pte. Ltd. are required to file
their proofs of debt by May 18, 2025, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on April 9, 2025.
The company's liquidators are:
Tan Wei Cheong
Lim Loo Khoon
6 Shenton Way
OUE Downtown 2, #33-00
Singapore 068809
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S O U T H K O R E A
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HOMEPLUS CO: Prosecutors Raid Homeplus, MBK Offices
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Pulse reports that South Korean prosecutors raided Homeplus'
headquarters on April 28 as part of an investigation into alleged
fraud by the company's executives. A group of prosecutors and
investigators were dispatched to Homeplus' main office in Gangseo
District, Seoul, to conduct a search and seizure operation.
Pulse relates that the raid also included the headquarters of
Homeplus' major shareholder MBK Partners. According to Pulse,
authorities suspect that Homeplus and MBK were aware in advance of
a downgrade in the company's credit rating and were preparing for
corporate rehabilitation but continued to issue short-term bonds.
Prosecutors are investigating company executives on charges
including fraud.
Homeplus' credit rating was downgraded from A3 to A3- in February
2025, and the company filed for court receivership just four days
later on March 4, Pulse notes. Prosecutors are focusing on the fact
that even after Homeplus and MBK received a downgrade notification
from a credit rating agency on February 25, 2025, they issued over
KRW80 billion ($54.47 million) in bonds to attract investors.
Issuing new bonds when a credit downgrade and rehabilitation
proceedings were imminent is viewed as being potentially deceptive
toward investors.
According to Pulse, prosecutors are also investigating possible
mis-selling by Shin Young Securities, which led the sale of
asset-backed short-term bonds based on Homeplus' credit card
receivables. If it is found that sufficient risk disclosures were
not provided to investors during the sales process, the firm could
face liability for incomplete sales. Several securities companies
filed criminal complaints against Homeplus executives for fraud
earlier this month.
Meanwhile, the Financial Supervisory Service officially referred
the Homeplus case to prosecutors on April 21, 2025, following its
investigation, Pulse reports. The financial regulator reportedly
found indications that MBK may have been aware of the likelihood of
a credit rating downgrade much earlier than it had claimed.
Internal documents suggest that Homeplus faced severe liquidity
issues from late 2023 and discussions about entering rehabilitation
proceedings had already started among the company's executives
around that time.
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.
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S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
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Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
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