/raid1/www/Hosts/bankrupt/TCRAP_Public/180420.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
Friday, April 20, 2018, Vol. 21, No. 078
Headlines
A U S T R A L I A
ARNAGE HOLDINGS: First Creditors' Meeting Set for April 30
BUX GLOBAL: Judge Fast-Tracks Investor's Wind Up Bid
EDESSA PTY: First Creditors' Meeting Set for May 1
EHP (GOLD COAST): First Creditors' Meeting Set for April 30
JAMIE OLIVER: Workers Unsure to Receive Unpaid Wages
MAC ENTERPRISES: First Creditors' Meeting Set for May 2
MAWSON GOLD: First Creditors' Meeting Set for May 2
C H I N A
GOLDEN EAGLE: Moody's Ups Senior Unsecured Debt Rating to B1
I N D I A
ABAAN IMPEX: CRISIL Assigns B Rating to INR8MM Cash Loan
ANIL COLOUR: CRISIL FB+ Rating Remains on 'Notice of Withdrawal'
CONCORDE DESIGNS: CRISIL Moves B Rating to Not Cooperating Cat.
DEEPAK YADAV: CRISIL Moves B Rating to Not Cooperating Category
GUHAN SANJEEVI: CRISIL Assigns B Rating to INR2.5MM Cash Loan
JAMMU PIGMENTS: CRISIL Withdraws B+ Rating on INR12MM Cash Loan
KARTHIK TRAVELS: CRISIL Lowers Rating on INR6MM Overdraft to D
KHUSHI EXIM: CRISIL Lowers Rating on INR14MM Cash Loan to D
KLG JEWELLERS: CRISIL Lowers Rating on INR15MM Loan to B+
MAA MUNDESHWARI: CRISIL Assigns B+ Rating to INR9MM Cash Loan
MEHTA STAR: CRISIL Migrates B Rating to Not Cooperating Category
MITTAL PIGMENTS: CRISIL Withdraws B+ Rating on INR10MM Cash Loan
PAREKH ALUMINEX: CRISIL Reaffirms D Rating on INR90MM Bank Loan
PRAHLAD ISPAT: CRISIL Moves B+ Rating to Not Cooperating Category
ROJER MATHEW: CRISIL Moves B- Rating to Not Cooperating Category
S.S. RICE UNIT: CRISIL Withdraws B+ Rating on INR7.54MM Loan
SANEE INFRASTRUCTURE: CRISIL Moves B Rating to Not Cooperating
SDS INFRATECH: CRISIL Migrates D Rating to Not Cooperating Cat.
SHIVIN CA: CRISIL Migrates B+ Rating to Not Cooperating Category
SHRI RAM: CRISIL Withdraws B Rating on INR12.5MM Cash Loan
STARWOOD TECHNO: CRISIL Moves B Rating to Not Cooperating Cat.
SUNITI PROVA: CRISIL Assigns 'B' Rating to INR2.50MM Cash Loan
UNIQUE CHAINS: CRISIL Moves B+ Rating to Not Cooperating Category
VEDSIDHA PRODUCTS: CRISIL Moves D Rating to Not Cooperating Cat.
VRAJ PSYLLIUM: CRISIL Assigns 'B' Rating to INR4.8MM Term Loan
I N D O N E S I A
MAXWELL INTERNATIONAL: New HK Investors Buy Company's Shares
J A P A N
TAKATA CORP: Dist. Ct. OK's Proposed Restitution Fund Methodology
N E W Z E A L A N D
PREET & CO: Goes Into Liquidation Owing NZ$14 Million
S O U T H K O R E A
STX OFFSHORE: KDB Approves Self-Rescue Plan
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=================
A U S T R A L I A
=================
ARNAGE HOLDINGS: First Creditors' Meeting Set for April 30
----------------------------------------------------------
A first meeting of the creditors in the proceedings of Arnage
Holdings Pty Ltd will be held at the offices of Worrells
Solvency + Forensic Accountants, Level 15, 114 William Street, in
Melbourne, Victoria, on April 30, 2018, at 3:30 p.m.
Con Kokkinos and Matthew Jess of Worrells Solvency were appointed
as administrators of Arnage Holdings on April 18, 2018.
BUX GLOBAL: Judge Fast-Tracks Investor's Wind Up Bid
----------------------------------------------------
Tim Clarke at The West Australian reports that the future of the
company behind a mobile-based money transfer business that has
attracted AUD100 million in investments -- along with allegations
of money laundering and extortion -- could be known within weeks.
The West Australian relates that a Federal Court judge on
April 16 vowed to fast-track an application to have Bux Global
Limited wound up, an action launched late last year by a
disgruntled investor.
And on April 16, lawyers for that shareholder, Peter Hooke,
appeared before Justice Michael Barker, claiming it was only
"dubious circumstances" that had led him to becoming a
shareholder in the first place -- without his agreement or
knowledge, the report says.
According to the West Australian, Mr. Hooke claims his initial
cash investment, which court documents put at more than AUD1.5
million, culminated in a shareholding in an entity in Hong Kong,
which was then transferred to a shareholding in Australia.
But Bux said Mr. Hooke had no standing to apply to have the
company wound up -- and they were prepared to prove it. That
looks set to lead to a courtroom showdown within months, after
Justice Barker ordered both sides to come back to him in a week
with a timetable for a possible trial, The West Australian
relays.
"Everything would be in the pot," the report quotes Justice
Barker as saying.
If it goes ahead, that hearing will be of huge interest to around
450 investors, including 300 from WA, who have poured more than
AUD100 million into the company on the back of claims its mobile
phone app will revolutionise electronic money transfers, the
report notes.
Those investors include former world champion boxer Danny Green,
former Australian cricketer Greg Matthews and Adelaide Crows
champion Mark Ricciuto, The West Australian discloses.
They were sold the dream of a big slice of the money transfer
market which exists among more than 2.5 billion people around the
world who do not use banks -- the so-called "unbanked," according
to the West Australian.
One of the biggest promoters of shares was Michael Van Rens, a
notorious figure in the global Firepower fraud, notes the report.
The Bux company's financial report to June 2017 recorded just
AUD17,268 in revenue against losses of AUD5.2 million, with no
investor ever receiving a dividend, the West Australian
discloses.
More than AUD970,000 was paid to consultants, the report notes.
After The Weekend West revealed Bux's troubles, high-profile paid
advisers -- former boss of the Commonwealth Bank David Murray,
former editor-in-chief of The Australian newspaper Chris Mitchell
and former chief financial officer of the Nine Network, Simon
Kelly -- all quit.
Nevertheless, Bux founder Raymond Webber has described the
application to have the company wound up by the Federal Court in
Perth as "frivolous".
"The history behind why this guy is taking the action . . . will
play out in the next few weeks and there will be a story of real
interest," the report quotes Mr. Webber as saying.
EDESSA PTY: First Creditors' Meeting Set for May 1
--------------------------------------------------
A first meeting of the creditors in the proceedings of Edessa
Pty. Limited will be held at Equinox Building 4, Level 2
70 Kent Street, in Deakin, ACT, on May 1, 2018, at 10:00 a.m.
Frank Lo Pilato and Jonathon Colbran of RSM Australia were
appointed as administrators of Edessa Pty on April 18, 2018.
EHP (GOLD COAST): First Creditors' Meeting Set for April 30
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of EHP (Gold
Coast) Pty Ltd will be held at the offices of EY Brisbane
Level 51, 111 Eagle Street, in Brisbane, Queensland, on April 30,
2018, at 2:30 p.m.
Justin Denis Walsh and Samuel Freeman of Ernst & Young were
appointed as administrators of EHP (Gold Coast) on April 17,
2018.
JAMIE OLIVER: Workers Unsure to Receive Unpaid Wages
----------------------------------------------------
Patrick Hatch at The Sydney Morning Herald reports that Jamie
Oliver's company had found a franchisee operator to run its chain
of restaurants in Australia before it called in administrators,
leaving some workers out of a job and unsure if they will receive
unpaid wages.
Jamie Oliver Restaurant Group Australia appointed partners from
accounting firm BDO on April 16 and closed down its outlet in
Canberra with immediate effect, the report says.
SMH relates that the five Jamie's Italian restaurants in Sydney,
Brisbane, Perth, Parramatta and Adelaide will continue to trade
under the management of the Brisbane-based Hallmark Group, the
report says.
All 53 of the global company's restaurants outside the UK are run
as franchises, with the Australian arm being owned in-house for a
short stint after the collapse of previous Australian franchisee
Keyston Group in late 2016, SMH discloses.
According to SMH, one employee at the now-closed Jamie's Italian
in Canberra said workers were told that as well as losing their
jobs, they would not receive their wages for the past fortnight
until further notice.
Going into administration means there is no guarantee workers
will receive their entitlements at all, or that suppliers will
have their invoices paid, the report states.
SMH relates that the employee, who asked not to be named, said
the restaurant had about 35 casual staff and 13 full-time
workers, including some who the company had sponsored on work
visas.
A spokeswoman for the Jamie Oliver Restaurant Group said staff
who were "transitioning" to the new operators would be paid wages
up to that date, but would not comment on the Canberra staff's
entitlements, SMH relays.
She said the business "faced high rent and restrictive trading
conditions, so made the difficult decision to close the Canberra
site".
"Australia has, and continues to be, one of our best-performing
international markets and, after a short period of in-house
management, we are pleased to be partnering with Hallmark," the
spokeswoman, as cited by SMH, said.
A BDO spokeswoman said voluntary administration was necessary "to
facilitate the closure of the Canberra restaurant".
SMH notes that Oliver's businesses are facing stress globally,
and have been trying to restructure debts of GBP71.5 million
($126 million).
A spokeswoman for Hallmark said the group was "thrilled to
partner with Jamie Oliver Restaurant Group on the Australian
portfolio" and was "actively seeking new suitable locations for
the next Jamie's Italian," the report adds.
Andrew Sallway, James White and Andrew Fielding of BDO were
appointed as administrators of Jamie Oliver Restaurant Group
(Australia) Pty Ltd, trading as Jamie's Italian Restaurants, on
April 16, 2018.
MAC ENTERPRISES: First Creditors' Meeting Set for May 2
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Mac
Enterprises (Vic) Pty Ltd, trading as Carringbush Hotel and
Restaurant, will be held at the offices of Romanis Cant
Level 2, 106 Hardware Street, in Melbourne, Victoria, on May 2,
2018, at 11:00 a.m.
Anthony Robert Cant and Renee Sarah Di Carlo of Romanis Cant were
appointed as administrators of Mac Enterprises on April 19, 2018.
MAWSON GOLD: First Creditors' Meeting Set for May 2
---------------------------------------------------
A first meeting of the creditors in the proceedings of Mawson
Gold NL will be held at the offices of DuncanPowell, Level 4, 70
Pirie Street, in Adelaide, South Australia, on May 2, 2018, at
10:30 a.m.
Christopher Robert Powell and Stephen James Duncan of
DuncanPowell were appointed as administrators of Mawson Gold on
April 19, 2018.
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C H I N A
=========
GOLDEN EAGLE: Moody's Ups Senior Unsecured Debt Rating to B1
------------------------------------------------------------
Moody's Investors Service has upgraded Golden Eagle Retail Group
Ltd.'s corporate family rating (CFR) to Ba3 from B1.
Moody's has also upgraded Golden Eagle's senior unsecured debt
ratings to B1 from B2.
The outlook on the ratings is positive.
RATINGS RATIONALE
"The upgrade of Golden Eagle's ratings and positive ratings
outlook reflect our expectation that the company will continue to
improve its credit profile because of a stabilized retail
environment, supported by its continued revenue growth, stable
profitability and deleveraging," says Danny Chan, a Moody's
Analyst.
"The change in ratings and outlook also consider the
significantly reduced refinancing risk and improvement in the
company's debt maturity profile, following the successful
refinancing of the RMB4.9 billion offshore syndicated loan due
April 2018," adds Chan, who is also Moody's Lead Analyst for
Golden Eagle.
Moody's expects that Golden Eagle's gross sales proceeds (GSP)
will grow by about 10% over the next 12-18 months, supported by
an increased gross floor area (GFA), growing contribution from
property sales and the stable operating conditions in the retail
industry in China. Such solid growth will continue to lift the
company's retail scale and profits.
Golden Eagle's total GFA grew to 2.5 million square meters at the
end of 2017 -- after the opening of four new lifestyle centers
during the year -- representing a 41% increase in total GFA when
compared with 2015. Golden Eagle has also continued investing to
cultivate new revenue sources. And, it has enhanced the customer
experience and user stickiness of its platform.
The increased operating floor area and new business initiatives
will help the company to sustain a moderate revenue and EBITDA
growth of about 20% and 10% respectively over the next 12 months.
In particular, Golden Eagle should generate EBITDA of more than
RMB2.5 billion per annum over the next 12-18 months, of which,
about RMB2.1 billion will be attributable to its core retail
activities.
Moody's also expects that Golden Eagle will continue to dispose
of its property inventories, and will likely generate more than
RMB800-1000 million in property development-related revenues per
annum over the next two years. The growing contribution of
property income over the next 2-3 years will help the company to
weather any potential headwind in the retail business.
Golden Eagle has been generating about RMB750 million of property
revenue over the last two years. At the end of 2017, Golden Eagle
had completed property-held-for-sales of RMB1.3 billion.
Moody's points out that typically, the launch of a new store
would dampen profit margins for the first few quarters, because
it takes time to optimize the operation and generate yield levels
comparable to matured stores.
Nevertheless, Moody's expects that the company's increased level
of property sales over the next 2 years will help offset the
lower profitability of its newly opened stores. As a result, its
adjusted EBITDA/GSP will remain stable at about 16%-17% over the
same period, similar to 17.1% in 2017.
Golden Eagle has also demonstrated a track record of deleveraging
as a result of steady EBITDA growth, despite the industry
volatility.
Ongoing business expansion is supported by EBITDA growth, with
debt levels remaining flat.
Golden Eagle' debt leverage -- in terms of adjusted
debt/EBITDA -- should improve to about 3.5x over the next 24
months from 4.7x in 2015; retained cash flow (RCF) to net debt
should remain at above 20% over the corresponding period. This
level of leverage is strong for its Ba3 rating. Such resilience
provides a buffer against the cyclical nature of its retail
business.
On April 12, 2018, Golden Eagle announced that its wholly-owned
subsidiary, Golden Eagle International Trading Limited, had
entered into a new syndicated loan agreement on 12 April 2018.
The new facility, together with the group's internal resources,
will be used to refinance the entire dual-currency three-year
term loan facility in the outstanding principal amounts of USD603
million and HKD1.015 billion, which will be repaid in full on 16
April 2018.
Upon the refinancing, Golden Eagle's liquid resources far
exceeded its planned capital investment, while the outstanding
borrowings were all long term in nature. The company reported
operating cash flow of around RMB3.1 billion in 2017 and cash on
hand of RMB6.5 billion, including fixed deposits of RMB0.7
billion.
In addition, Golden Eagle held a portfolio of retail assets
totaling RMB2.8 billion in book value as of the end of 2017.
These resources can serve as back-up liquidity.
Golden Eagle's Ba3 CFR continues to be supported by its strong
market position in the affluent Jiangsu Province, the benefits of
its concessionaire model, and its self-owned properties.
Golden Eagle's ratings also reflect its small scale, high level
of geographic concentration, the intense competition that it
faces in the retail industry, and the property development risk
that it faces.
The positive ratings outlook reflects Moody's expectations that
over the next 12-18 months, Golden Eagle's improved credit
profile will be sustained on the back of revenue growth and
improved earnings; and the pursuit of a prudent financial policy
and management, as its business expands.
The ratings could be upgraded if the company: (1) continues to
improve its revenue and earnings; (2) maintains a disciplined
acquisition and shareholder return policy; and (3) improves its
debt leverage, such that adjusted debt/EBITDA falls below 3.5x-
4.0x and adjusted RCF/net debt remains solidly above 20%, all on
a sustained basis
The ratings outlook could return to stable if: (1) Golden Eagle
fails to execute its property sales as scheduled; (2) its credit
metrics weaken such that adjusted debt/EBITDA is above 4.0x-4.5x
or its adjusted RCF/net debt falls below 10%-15%; (3) the
company's profitability or cash flow and/or its liquidity
position deteriorate; or (3) it aggressively grows its property
development business or pursues material acquisitions through
debt.
The principal methodology used in these ratings was Retail
Industry published in October 2015.
Golden Eagle Retail Group Ltd is one of the largest department
store operators in China. Based in Nanjing, the company is
strategically positioned in second- and third-tier Chinese
cities, catering to mid-to high-end customers.
At December 31, 2017, Golden Eagle operated 32 stores, including
15 lifestyle centers, in the Jiangsu, Anhui, Shaanxi, Yunnan and
Shanghai regions.
=========
I N D I A
=========
ABAAN IMPEX: CRISIL Assigns B Rating to INR8MM Cash Loan
--------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B/Stable/CRISIL A4'
ratings on the bank facilities of Abaan Impex Private Limited
(AIPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 4 CRISIL A4
Cash Credit 8 CRISIL B/Stable
The rating continues to reflect below average financial risk
profile and modest scale of operations and exposure to intense
competition in the fragmented industry. These rating strengths
has been partially offset by extensive experience of the promoter
in the cashew business.
Analytical Approach
For arriving at the ratings, CRISIL has treated unsecured loans
of INR1.63 crore (as on March 31, 2017) extended to AIPL by its
promoters as neither debt nor equity as the loans are expected to
be retained in the business over the medium term.
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations and exposure to intense competition
in the fragmented industry: The firm's business risk profile
remains constrained on account of its small scale of operations
in a highly fragmented industry. The firm recorded revenues of
Rs.39.37 crore during 2016-17 (refers to financial year, April 1
to March 31). The cashew industry is highly fragmented, marked by
the presence of many small and large players, leading to intense
competition in both the organised and unorganised segments.
* Below-average financial risk profile: The AIPL has below-
average financial risk profile marked by modest net worth of
INR2.27 cr., high gearing of 3.22 times as on March 31, 2017. The
firm has moderate debt protection metrics with net cash accrual
to Total debt (NCATD) and interest coverage ratios of over 0.04
and 1.73 times, respectively, for 2016-17. Financial risk profile
may remain below average over the medium term.
Strength
* Extensive experience of the promoter in the cashew business:
AIPL is promoted by by Mr. Najeeb A. The promoter has been
related to the same line of business for over a decade.
Presently, the firm generates its entire revenues from sale of
cashew kernels. The firm has a strong customer base in the export
market, with whom it has been associated since inception,
resulting in repeat business. Its long-standing position in the
cashew segment has given the firm a negotiating edge with its
various intermediaries.
Outlook: Stable
CRISIL believes that AIPL will continue to benefit from the
promoter's extensive experience in the cashew industry. The
outlook may be revised to 'Positive', if the firm scales up its
revenues and maintains its margins resulting in an improvement in
its capital structure. Conversely, the outlook may be revised to
'Negative', if the firm records lower than expected revenues and
profitability or undertakes greater than expected debt funded
capex or in case of significant withdrawals by the promoter.
Incorporated in 2014 by Mr. Najeeb A, AIPL is based out of
Trivandrum, Kerala and is engaged in trading of raw cashew nut.
ANIL COLOUR: CRISIL FB+ Rating Remains on 'Notice of Withdrawal'
----------------------------------------------------------------
CRISIL Ratings has been consistently following up with Anil
Colour Industries Pvt Ltd (ACIPL) for obtaining information
through letters dated December 31, 2017, and March 23, 2018,
among others; apart from telephonic communication. However, the
issuer has remained non-cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Fixed Deposits 2 FB+/Stable FB+/Stable (Issuer
Not Cooperating; Continues to
be on 'Notice of Withdrawal')
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of ACIPL. This restricts CRISIL's
ability to take a forward-looking view on the entity's credit
quality. Hence, based on the last available information, the
rating on the company's fixed deposit continues to be 'CRISIL
FB+/Stable, notice of withdrawal; issuer not cooperating'.
CRISIL will continue to place the rating on 'Notice of
Withdrawal' for additional two years at the company's request.
This in line with CRISIL's policy on withdrawal of ratings on
fixed deposits; the ratings will be withdrawn at the end of the
notice period.
The rating continues to reflect the extensive experience of
ACIPL's promoters in the dye intermediate chemicals industry and
established relationship with suppliers and customers. These
strengths are partially offset by modest scale of operations.
Key Rating Drivers & Detailed Description
Strength:
* Extensive experience of promoters: Longstanding presence in the
dye intermediate chemicals industry has enabled the promoters to
establish healthy relationship with customers and suppliers.
Weakness:
* Modest scale of operations: With turnover of INR15 crore in
fiscal 2016, scale remains small.
Outlook: Stable
CRISIL believes ACIPL will continue to benefit over the medium
term from the extensive experience of its promoters. The outlook
may be revised to 'Positive' if a significant and sustained
improvement in revenue and operating margins leads to increased
accretion to reserves, or if there is substantial equity
infusion. The outlook may be revised to 'Negative' if significant
decline in revenue or margins, stretch in working capital cycle,
or large, debt-funded capital expenditure weakens financial risk
profile.
Set up in 1989 by Mr Bharat Shah, Mr B K Patel, and their
families, ACIPL manufactures dye intermediates (meta uriedo
aniline hydro chloride and sulfo methyl carbamoyl pyridone) at
its facility in Vadodara.
CONCORDE DESIGNS: CRISIL Moves B Rating to Not Cooperating Cat.
---------------------------------------------------------------
Due to inadequate information, CRISIL Ratings, in line with SEBI
guidelines, had migrated the rating on bank facilities of
Concorde Designs Private Limited (CDPL) to 'CRISIL
B+/Stable/CRISIL A4 Issuer Not Cooperating'. However, the
management has subsequently shared the requisite information,
necessary for carrying out comprehensive review of the rating.
Consequently, CRISIL is migrating the rating on bank facilities
of CDPL from 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating'
to 'CRISIL B/Stable/CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 2 CRISIL A4 (Migrated from
'CRISIL B+/Stable' Issuer Not
Cooperating)
Cash Credit 10 CRISIL B/Stable (Migrated from
'CRISIL B+/Stable' Issuer Not
Cooperating)
The downgrade reflects deterioration of business risk profile of
CDPL in fiscal 2017 due to decline in turnover and operating
losses.
The ratings continue to reflect below-average financial risk
profile and modest scale of working capital-intensive operations.
These weaknesses are partially offset by extensive experience of
promoters and established relations.
Analytical Approach
For arriving at the ratings, unsecured loans of INR2.9 crores as
on March 31, 2017, have been treated as neither debt nor equity
as these are expected to remain in business over the medium term.
Key Rating Drivers & Detailed Description
Weaknesses
* Below-average financial risk profile: CDPL's financial risk
profile is below average due to accumulated losses which have led
to an erosion in its net worth. It has also booked operating
losses for the last 2 years ended fiscal 2017 due to overall
slowdown in the real estate industry and impact of
demonetization. Intense competition and tender based nature of
operations further restricts operating profitability. However,
the promoters have supported the company by way of unsecured
loans outstanding at INR2.9 crores as on March 31, 2017.
* Modest scale of working capital-intensive operations: With
revenue of INR28 crores for fiscal 2017, scale remains small in
the competitive interior designing segment, which restricts
ability to bid for large projects. Also, since business is
tender-based, income depends on order flow; this is reflected in
volatile sales in the three years through fiscal 2017, with a
decline in revenue in fiscal 2017 by 21% as 2017. Working capital
requirements are high reflected in Gross Current Assets of 216
days as on March 31, 2017, driven by sizeable work in progress of
115 days and other current assets, primarily advances to
suppliers. The company stretches payment to its subcontractors
and thereby avails a credit of about 200 days from its
subcontractors. However, for the incremental working capital
needs, CDPL relies on bank lines due to which bank limit remains
almost fully utilized. With ramp-up in operations, working
capital requirements will remain large over the medium term.
Strength:
* Promoters' extensive experience in the industry and established
relationships: The company recorded moderate revenue of INR68
crores during 2016-17, supported by the promoters' extensive
experience in trading in steel products through RKB Global Pvt
Ltd. Mr. Virat Shah, the family patriarch, has over two decades
of experience in trading in steel products. CRISIL believes that
SSTL will continue to benefit from the promoters' extensive
industry experience and will achieve stable offtake despite the
initial years of trading in steel products.
Outlook: Stable
CRISIL believes CDPL will continue to benefit over the medium
term from its promoter's extensive industry experience. The
outlook may be revised to 'Positive' in case of an increase in
revenue and profitability, leading to higher cash accruals and
improvement in financial risk profile. The outlook may be revised
to 'Negative' in case of low accrual, larger-than-expected
working capital requirement, or unanticipated capital
expenditure, resulting in weakening of financial risk profile,
especially liquidity.
CDPL, incorporated in 2002, is promoted by Mr. Anvay Madhukar
Naik. It designs and constructs interior works for corporate
customers and provides architectural consulting.
DEEPAK YADAV: CRISIL Moves B Rating to Not Cooperating Category
---------------------------------------------------------------
CRISIL Ratings has been consistently following up with Deepak
Yadav & others (DYAT) for obtaining information through letters
and emails dated January 15, 2018, February 26, 2018, March 13,
2018 and March 19, 2018 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 9 CRISIL B/Stable (Issuer Not
Cooperating; Rating Migrated)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Deepak yadav & others. Which
restricts CRISIL's ability to take a forward looking view on the
entity's credit quality. CRISIL believes information available on
Deepak yadav & others is consistent with 'Scenario 1' outlined in
the 'Framework for Assessing Consistency of Information with
CRISIL BB' rating category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facility of Deepak yadav & others to 'CRISIL B/Stable Issuer not
cooperating'.
Established in 2016 by Mr. Deepak Yadav, Mr. Pawan Kumar, Mr.
Hoshiyar Singh and Mr. Ravinder Singh Yadav, DYAT is setting up a
warehouse in Pathredi, Gurgaon district.
GUHAN SANJEEVI: CRISIL Assigns B Rating to INR2.5MM Cash Loan
-------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B/Stable/CRISIL A4'
ratings to the bank facilities of Guhan Sanjeevi Enterprises
(GSE).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 6 CRISIL A4 (Assigned)
Cash Credit 2.5 CRISIL B/Stable (Assigned)
The ratings reflect a modest scale of operations and below-
average financial risk profile. These rating weaknesses are
partially offset by the extensive experience of partners in the
sheet metal industry.
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations in the intensely competitive
transformers industry: Revenue was modest at INR33.6 crore in
fiscal 2017 in a fragmented industry. This leads to limited
bargaining power with suppliers and customers and hence to
pressure on the working capital cycle, and also restricts the
ability to exploit economies of scale.
* Below-average financial risk profile: The networth was modest
at INR2.2 crore due to low accretion to reserves, and the gearing
was high at 6.9 times, as on March 31, 2017.
Strengths
* Extensive industry experience of the partners: The partners had
been manufacturing welded metal sheet components for over a
decade before starting GSE. This has led to a healthy
relationship with customers ensuring repeat orders, and also with
suppliers.
Outlook: Stable
CRISIL believes GSE will continue to benefit from the extensive
industry experience of its partners. The outlook may be revised
to 'Positive' if there is significant and sustained increase in
the scale of operations and profitability along with better
working capital management, or if the capital structure improves
considerably either by way of capital infusion or better-than-
expected cash accrual. The outlook may be revised to 'Negative'
in case of significant deterioration in the financial risk
profile, particularly liquidity, due to larger-than-expected
working capital requirement, or a significant decline in turnover
or operating margin leading to less-than-expected cash accrual.
GSE was set up in 2003 as a partnership firm by Mr S Vimal. The
Chennai-based firm manufactures sheet metal components and
fabricates transmission and communication towers at its facility
in Thirvallur, Tamil Nadu.
JAMMU PIGMENTS: CRISIL Withdraws B+ Rating on INR12MM Cash Loan
---------------------------------------------------------------
CRISIL Ratings has been consistently following up with Jammu
Pigments Limited (JPPL) for obtaining information through letters
and emails dated October 23, 2017, and December 13, 2017 among
others, apart from telephonic communication. However, the issuer
has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Buyer's Credit 8 CRISIL A4/Issuer Not
Cooperating (Issuer Not
Cooperating; Rating Withdrawal)
Cash Credit 12 CRISIL B+/Stable (Issuer Not
Cooperating; Rating Withdrawal)
Standby Letter 2 CRISIL A4 (Issuer Not
of Credit Cooperating; Rating Withdrawal)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as they are arrived at without any
management interaction and are based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of JPPL. This restricts CRISIL's
ability to take a forward JPPL is consistent with 'Scenario 1'
outlined in the 'Framework for Assessing Consistency of
Information with CRISIL BB rating category or lower. Based on the
last available information, the rating on bank facilities of JPPL
continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'.
CRISIL has withdrawn its ratings on the bank facilities of JPPL
on the request of the company and receipt of a no objection / due
certificate from its bank. The rating action is in line with
CRISIL's policy on withdrawal of its ratings on bank loans.
Mittal group was established by Mr. Ramesh Kumar Agarwal and his
wife. The promoters have been in the same line of business for
over 20 years through other group entities. MPPL, incorporated in
1991, manufactures refined lead ingots, alloys, and oxides; and
zinc oxides and alloys. The company's manufacturing facility is
in Kota (Rajasthan). JPPL, incorporated in 2003, also
manufactures lead and zinc products. Its manufacturing facility
is in Kathua (Jammu and Kashmir), which is an excise-free zone.
KARTHIK TRAVELS: CRISIL Lowers Rating on INR6MM Overdraft to D
--------------------------------------------------------------
CRISIL Ratings has been consistently following up with Karthik
Travels Private Limited (KTPL) for obtaining information through
letters and emails dated December 14, 2017 and January 17, 2018
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Overdraft 6 CRISIL D/Issuer Not Cooperating
(Issuer Not Cooperating;
Downgraded from 'CRISIL BB-
/Stable')
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of KTPL. Which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on KTPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
CRISIL has downgraded its rating on the long-term bank facilities
of Karthik Travels Pvt Ltd (KTPL) to 'CRISIL D' from 'CRISIL BB-
/Stable'.
The downgrade reflects instances of excess utilisation of the
overdraft limit for more than 30 days in the past 12 months. The
last such instance was in February 2018. This was due to a
stretch in the working capital cycle.
Karthik Travels (KT) set up as a proprietorship firm in 1998, is
engaged in providing car rental services. The firm was
reconstituted into a Private Limited company in 2016 as KTPL. The
company also provides luxury car rental services. The day to day
operations are managed by Mr. Mohan & Mr. Eshwar.
KHUSHI EXIM: CRISIL Lowers Rating on INR14MM Cash Loan to D
-----------------------------------------------------------
CRISIL Ratings has been consistently following up with Khushi
Exim Private Limited (KEPL) for obtaining information through
letters and emails dated January 27, 2017 and February 28, 2017
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 14 CRISIL D (Issuer Not
Cooperating; Downgraded from
'CRISIL B-/Stable Issuer Not
Cooperating)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company'.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of KEPL which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on KEPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has downgraded its rating on the
long-term bank facilities of KEPL to 'CRISIL D Issuer Not
Cooperating' from ''CRISIL B-/Stable Issuer Not Cooperating''.
The downgrade reflects delays in repayment of debt obligation.
However, the company benefits from the extensive experience of
the promoters in the industry.
Key Rating Drivers & Detailed Description
Weakness:
* Weak liquidity: Liquidity has been weak leading to delays in
servicing of the repayment obligation.
Strengths:
* Extensive experience of promoters in the jewellery industry: Mr
Hiralal Jalan has 42 years of experience in the gold and
jewellery industry. Prior to KEPL, he was a partner in Bullion
Traders, a partnership that dissolved in 2003. Benefits derived
from the promoters' extensive, their strong understanding of the
local market dynamics, and healthy relations with customers and
suppliers should continue to support the business.
KEPL was established in 2003 by Mr. Hiralal Jalan and his son,
Mr. Vikash Jalan, in Kolkata. The company is in wholesaling and
retailing of gold jewellery, silver articles, and diamond- and
kundan-studded jewellery. It sells to retail showrooms in Raipur
(Chhattisgarh), Nagpur (Maharashtra), Indore (Madhya Pradesh),
Jamshedpur (Jharkhand), Ranchi (Jharkhand), and a few other
locations.
KLG JEWELLERS: CRISIL Lowers Rating on INR15MM Loan to B+
---------------------------------------------------------
CRISIL Ratings has downgraded its ratings on the bank facilities
of KLG Jewellers (KLG) to 'CRISIL B+/Stable' from 'CRISIL BB-
/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Electronic Dealer 15 CRISIL B+/Stable (Downgraded
Financing Scheme from 'CRISIL BB-/Stable')
(e-DFS)
Long Term Loan 7.24 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
Proposed Long Term 1.86 CRISIL B+/Stable (Downgraded
Bank Loan Facility from 'CRISIL BB-/Stable')
Proposed Overdraft 3.00 CRISIL B+/Stable (Downgraded
Facility from 'CRISIL BB-/Stable')
The downgrade reflects sizeable capital withdrawals made in
fiscal 2018 - to fund capex undertaken in September 2017,
purchase of property in Chandigarh, and for business expansion.
Networth is, therefore, likely to remain modest at INR4.0-4.5
crore over the medium term (it was INR6.63 crore as of March
2017). Bank limit utilisation was high, at 91% in the 12 months
through February 2018.
The downgrade also factors in deterioration in capital structure,
owing to sizeable debt contracted in fiscal 2018 to support
working capital and fund capital withdrawals. Total outside
liabilities to total networth (TOLTNW) ratio may exceed 4.0 times
over the near term (as against 1.55 times as of March 2017) on
account of modest networth and sizeable debt. Increased interest
obligation and modest profitability of 3.0-3.5% may debt
protection metrics: interest cover is expected at 1.4-1.6 times.
Business risk profile is stable with revenue growing 36% in
fiscal 2017 to INR57.22 crore over the previous fiscal.
Exclusivity as Tanishq's only franchise retailer in the region,
should help maintain steady growth. Operating margin may be
stable at 2.5-3.5% in the near term.
Key Rating Drivers & Detailed Description
Weaknesses
* Weak financial risk profile: Small networth of INR4-4.5 crore
over the medium term, and large, working capital debt led to a
weak total outside liability to tangible networth ratio of 4.0-
4.5 times. Interest coverage and net cash accrual to total debt
ratios were 2.2 times and 0.08 time, respectively, for fiscal
2017. However, with rising interest obligation due to working
capital debt, interest coverage ratio is expected to drop to 1.5-
1.6 times. Financial risk profile may remain weak over the medium
term.
* Geographical concentration in revenue and intense competition:
The firm has high geographical concentration in its revenues,
with all of its revenue coming from its single showroom at
Patiala, Punjab. Changes in purchasing power of customers in the
local market or in business conditions could affect the firm's
revenues significantly. Moreover, the jewellery industry is
highly fragmented with a large number of unorganized players
dominating the market, as it is neither capital- nor technology-
intensive. Exposure to risks relating to geographical
concentration and intense competition will, likely, persist.
* Small scale of operations and low operations margin
With turnover of INR57.22 crore in fiscal 2017, scale remains
modest, though revenue increased 36% in fiscal 2017. Operating
profitability was 3.34 in fiscal 2017, and is expected to be
remain stable over the medium term. Revenue should be largely
stable, too, at INR72-75 crore in fiscal 2018.
Strengths
* Experience of partners: The partners' family have over 20
years' experience, and strong insight into trends in the gold &
diamond jewellery. CRISIL believes that the firm will continue to
benefit from its partner's extensive industry experience over the
medium term.
* Brand presence & favorable market position: Tanishq is a
trusted name in the jewellery business. It is renowned for its
hallmarked jewellery collection. KLG has maintained healthy
relations within the gems and jewellery industry in Patiala, and
established brand of Tanishq in the market with its single
showroom. KLG also caters to large corporate houses, through
promotional and incentive schemes.
Outlook: Stable
CRISIL believes KLG will benefit over the medium term from the
extensive experience of its partners. The outlook may be revised
to 'Positive' if more-than-expected cash accrual due to
significant increase in revenue and operating profitability leads
to a better financial risk profile. The outlook may be revised to
'Negative' if decline in revenue and profitability, stretch in
working capital cycle, or large, debt-funded capex weakens
financial risk profile.
KLG was incorporated in September 2013 by the Patiala based Goyal
family. KLG is engaged in running a Tanishq jewellery (Titan
Company Ltd; CRISIL AA+/Stable/CRISIL A1+) dealership in Patiala,
Punjab. Ms Manju Goyal and her nephew Mr Kashish Goyal are the
partners.
MAA MUNDESHWARI: CRISIL Assigns B+ Rating to INR9MM Cash Loan
-------------------------------------------------------------
CRISIL Ratings has assigned 'CRISIL B+/Stable' rating to the bank
facilities of Maa Mundeshwari Motors Private Limited (MMMPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 9 CRISIL B+/Stable
Proposed Working
Capital Facility 6 CRISIL B+/Stable
The rating reflects company's nascent stage of operation, below
average financial risk profile marked by moderate networth,
moderate gearing, moderate debt protection metrics and intense
competition in auto dealership business. These weakness are
partially offset by promoter's extensive experience in automobile
industry and their funding support.
Analytical Approach
Unsecured loans from promoters of INR2.75 crore are treated as
neither debt nor equity as these loans are subordinate to bank
debt and is interest free.
Key Rating Drivers & Detailed Description
Weakness
* Nascent stage of operations in an intensely competitive market:
The company has been operational only since August 2017, and
hence the scale will likely remain modest over the near term.
Further it is expect to maintain the low profitability due to
trading nature of operations and intense competition in the auto
dealership segment.
* Below average financial risk profile: The Company's financial
risk profile is expected to be average with moderate networth of
INR6.1 crore, and moderate gearing of 1.73 as on March 31, 2018.
Also debt protection metrics is moderate with expected net cash
accruals to total debt of around 0.16 times and interest coverage
ratio of 3.5 times as on March 31, 2018.
Strengths
* Promoter's extensive experience: The promoters have been in the
auto dealership business for over 10 years. The extensive
experience of promoter will help company in bringing significant
business linkage over and above the financial support.
Outlook: Stable
CRISIL believes that MMMPL will benefit from the experience of
its promoters in the industry. The outlook may be revised to
'Positive' if company increases its scale of operations and
profitability leading to improvement in its financial risk
profile. Conversely, the outlook may be revised to 'Negative' if
the financial risk profile weakens because of stretch in
company's working capital cycle and/or on account of any debt
funded capital expenditure (capex) in the near future.
Incorporated in February 2017, MMMPL in Ranchi, Zarkhand. The
company is a dealer of Tata Motors Pvt. Limited (TML) for
commercial vehicle. The company has one showroom with 3S facility
in Gaya, and two offices in Navada and Aurangabad in Bihar. The
commercial operations of the company started in August 2017.
MEHTA STAR: CRISIL Migrates B Rating to Not Cooperating Category
----------------------------------------------------------------
CRISIL Ratings has been consistently following up with Mehta Star
Hotels Private Limited (MSHPL) for obtaining information through
letters and emails dated February 23, 2018, March 15, 2018 and
March 20, 2018 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 0.27 CRISIL B/Stable (Issuer Not
Cooperating; Rating Migrated)
Term Loan 5.17 CRISIL B/Stable (Issuer Not
Cooperating; Rating Migrated)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Mehta Star Hotels Private
Limited. Which restricts CRISIL's ability to take a forward
looking view on the entity's credit quality. CRISIL believes
information available on Mehta Star Hotels Private Limited is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of Mehta Star Hotels Private Limited to 'CRISIL
B/Stable Issuer not cooperating'.
Established in February 2015, MSHPL is establishing a three-star
hotel along with banquet, gym and club facility in Gaya, Bihar.
Mr Anup Mehta and Mr Anil Mehta are its promoters. The hotel will
be named Sukhdeo Palace and is expected to commence occupancy
from December 2016.
MITTAL PIGMENTS: CRISIL Withdraws B+ Rating on INR10MM Cash Loan
----------------------------------------------------------------
CRISIL Ratings has been consistently following up with Mittal
Pigments Private Limited (MPPL) for obtaining information through
letters and emails dated October 23, 2017, and December 13, 2017
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Buyer's Credit 20 CRISIL A4 (Issuer Not
Cooperating; Rating Withdrawal)
Cash Credit 10 CRISIL B+/Stable (Issuer Not
Cooperating; Rating Withdrawal)
Term Loan 5 CRISIL B+/Stable (Issuer Not
Cooperating; Rating Withdrawal)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as they are arrived at without any
management interaction and are based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MPPL. This restricts CRISIL's
ability to take a forward MPPL is consistent with 'Scenario 1'
outlined in the 'Framework for Assessing Consistency of
Information with CRISIL BB rating category or lower. Based on the
last available information, the rating on bank facilities of MPPL
continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'.
CRISIL has withdrawn its ratings on the bank facilities of MPPL
on the request of the company and receipt of a no objection / due
certificate from its bank. The rating action is in line with
CRISIL's policy on withdrawal of its ratings on bank loans.
The Mittal group was established by Mr. Ramesh Kumar Agarwal and
his wife. The promoters have been in the same line of business
for over 20 years through other group entities. MPPL,
incorporated in 1991, manufactures refined lead ingots, alloys,
and oxides; and zinc oxides and alloys. The company's
manufacturing facility is in Kota (Rajasthan). JPPL, incorporated
in 2003, also manufactures lead and zinc products. Its
manufacturing facility is in Kathua (Jammu and Kashmir), which is
an excise-free zone.
PAREKH ALUMINEX: CRISIL Reaffirms D Rating on INR90MM Bank Loan
---------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL D/CRISIL D' ratings on
the bank facilities and non-convertible debentures of Parekh
Aluminex Limited (PAL). As per discussion with PAL's banker, the
account continues to be classified as non-performing asset (NPA).
Also the company is in insolvency resolution process under the
provisions of Insolvency and bankruptcy code, 2016 (IBC) by order
of NCLT and IRP has been appointed for the company.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 345 CRISIL D (Reaffirmed)
Letter of Credit 55 CRISIL D (Reaffirmed)
Letter of credit &
Bank Guarantee 90 CRISIL D (Reaffirmed)
Proposed Long Term
Bank Loan Facility 855 CRISIL D (Reaffirmed)
Key Rating Drivers & Detailed Description
* Delays in meeting debt obligation: As per discussion with PAL's
banker, PAL's account with the bank continues to be classified as
a NPA. In past, cash flow mismatch driven by suboptimal capacity
utilisation and large working capital requirement stretched
liquidity. Efforts to resolve this mismatch has not been
successful since the demise of PAL's then chairman and managing
director, Mr Amitabh Arun Parekh, in January 2013; he was the key
management person supervising operations.
Incorporated in 1994, PAL manufactures aluminium foil containers
(AFC), lids, covers, and allied products used in packaging food
items. Manufacturing units are in Dadra and Nagar Haveli. In
2005, PAL acquired a Singapore-based company to enter the
Southeast Asian markets. In 2008, its units acquired export
oriented-unit status. The company entered the retail space with
two brands, PAL and ME Foil, in fiscal 2011. It has annual
production capacities of 688 crore pieces of AFC, 3.96 crore
pieces of foil roll, and 179 crore pieces of foil lids.
PAL incurred loss of INR380 crore on net sales of INR1090 crore
for fiscal 2013, against profit after tax of INR84.66 crore on
net sales of INR1370 crore for fiscal 2012. No financials have
been released since June 2013.
PRAHLAD ISPAT: CRISIL Moves B+ Rating to Not Cooperating Category
-----------------------------------------------------------------
CRISIL Ratings has been consistently following up with Prahlad
Ispat Private Limited (PIPL) for obtaining information through
letters and emails dated January 15, 2018, February 26, 2018,
March 13, 2018 and March 19, 2018 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 7.75 CRISIL B+/Stable (Issuer Not
Cooperating; Rating Migrated)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Prahlad Ispat Private Limited.
Which restricts CRISIL's ability to take a forward looking view
on the entity's credit quality. CRISIL believes information
available on Prahlad Ispat Private Limited is consistent with
'Scenario 1' outlined in the 'Framework for Assessing Consistency
of Information with CRISIL BB' rating category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facility of Prahlad Ispat Private Limited to 'CRISIL B+/Stable
Issuer not cooperating'.
PIPL, incorporated in 2003 and acquired by Mr. Ritesh Mittal and
family in 2009, manufactures mild steel (MS) bars and rolls. The
manufacturing unit in Firozabad has installed capacity of 43,200
metric tonne per annum. MS bars are sold under the registered
brand, Shri Krishna TMT.
ROJER MATHEW: CRISIL Moves B- Rating to Not Cooperating Category
----------------------------------------------------------------
CRISIL Ratings has been consistently following up with Rojer
Mathew and Company (RMC) for obtaining information through
letters and emails dated December 18, 2017 and January 17, 2018
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 7 CRISIL A4 (Issuer Not
Cooperating; Rating Migrated)
Cash Credit 12 CRISIL B-/Stable (Issuer Not
Cooperating; Rating Migrated)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Rojer Mathew and Company.
Which restricts CRISIL's ability to take a forward looking view
on the entity's credit quality. CRISIL believes information
available on Rojer Mathew and Company is consistent with
'Scenario 1' outlined in the 'Framework for Assessing Consistency
of Information with CRISIL BB' rating category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the ratings on bank
facilities of Rojer Mathew and Company to 'CRISIL B-
/Stable/CRISIL A4 Issuer not cooperating'.
Set up as a partnership firm in Kochi (Kerala), RMC executes
civil contracts for Kerala Public Works Department. Operations of
the firm are managed by key partner, Mr. Rojer Mathew.
S.S. RICE UNIT: CRISIL Withdraws B+ Rating on INR7.54MM Loan
------------------------------------------------------------
CRISIL Ratings has been consistently following up with S.S. Rice
Unit (SSRU) for obtaining information through letters and emails
dated December 6, 2017, and January 31, 2018 among others, apart
from telephonic communication. However, the issuer has remained
non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 4 CRISIL B+/Stable (Issuer Not
Cooperating; Rating Withdrawal)
Proposed Fund- 7.54 CRISIL B+/Stable (Issuer Not
Based Bank Limits Cooperating; Rating Withdrawal)
Term Loan 1.46 CRISIL B+/Stable (Issuer Not
Cooperating; Rating Withdrawal)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as they are arrived at without any
management interaction and are based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of SSRU. This restricts CRISIL's
ability to take a forward SSRU is consistent with 'Scenario 1'
outlined in the 'Framework for Assessing Consistency of
Information with CRISIL BB rating category or lower. Based on the
last available information, the rating on bank facilities of SSRU
continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
CRISIL has withdrawn its ratings on the bank facilities of SSRU
on the request of the company and receipt of a no objection / due
certificate from its bank. The rating action is in line with
CRISIL's policy on withdrawal of its ratings on bank loans.
SSRU is a Haryana based partnership firm, established and
promoted in 1998 by Mr. Sudesh Kumar, Mr. Rakesh Kumar and Mr.
Rajesh Kumar. The firm processes Indian rice, including basmati,
to local customers, and undertakes job work for Food Corporation
of India.
SANEE INFRASTRUCTURE: CRISIL Moves B Rating to Not Cooperating
--------------------------------------------------------------
CRISIL Ratings has been consistently following up with Sanee
Infrastructure Private Limited (SIPL) for obtaining information
through letters and emails dated December 18, 2017 and January
17, 2018 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 8 CRISIL A4 (Issuer Not
Cooperating; Rating Migrated)
Cash Credit 2.9 CRISIL B/Stable (Issuer Not
Cooperating; Rating Migrated)
Proposed Cash 0.1 CRISIL B/Stable (Issuer Not
Credit Limit Cooperating; Rating Migrated)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Sanee Infrastructure Private
Limited. Which restricts CRISIL's ability to take a forward
looking view on the entity's credit quality. CRISIL believes
information available on Sanee Infrastructure Private Limited is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the ratings on bank
facilities of Sanee Infrastructure Private Limited to 'CRISIL
B/Stable/CRISIL A4 Issuer not cooperating'.
Incorporated in 2002, SIPL is a construction and infrastructure
development firm that executes projects related to construction
of roads for the Madhya Pradesh government. The company is
promoted by Mr.Nilay Jain and Ms.Nisha Jain.
SDS INFRATECH: CRISIL Migrates D Rating to Not Cooperating Cat.
---------------------------------------------------------------
CRISIL Ratings has been consistently following up with SDS
Infratech Private Limited (SIPL) for obtaining information
through letters and emails dated December 18, 2017 and January
17, 2018 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term 37.5 CRISIL D (Issuer Not
Bank Loan Facility Cooperating; Rating Migrated)
Term Loan 50.0 CRISIL D (Issuer Not
Cooperating; Rating Migrated)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of SDS Infratech Private Limited.
Which restricts CRISIL's ability to take a forward looking view
on the entity's credit quality. CRISIL believes information
available on SDS Infratech Private Limited is consistent with
'Scenario 1' outlined in the 'Framework for Assessing Consistency
of Information with CRISIL BB' rating category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of SDS Infratech Private Limited to 'CRISIL D Issuer
not cooperating'.
SIPL, formed in 2008 and based in Delhi, undertakes real estate
development. The company is promoted by Mr Deepak Bansal. It is
developing two residential projects, both under NRI residency, at
Noida and Greater Noida.
SHIVIN CA: CRISIL Migrates B+ Rating to Not Cooperating Category
----------------------------------------------------------------
CRISIL Ratings has been consistently following up with Shivin CA
Store for obtaining information through letters and emails dated
December 18, 2017 and January 17, 2018 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 10 CRISIL B+/Stable (Issuer Not
Cooperating; Rating Migrated)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Shivin CA Store. Which
restricts CRISIL's ability to take a forward looking view on the
entity's credit quality. CRISIL believes information available on
Shivin CA Store is consistent with 'Scenario 1' outlined in the
'Framework for Assessing Consistency of Information with CRISIL
BB' rating category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facility of Shivin CA Store to 'CRISIL B+/Stable Issuer not
cooperating'.
Shivin was incorporated as a partnership firm in 2016 by Mr
Shivin Chauhan and Ms Shiyana Chauhan. The firm is setting-up a
controlled atmosphere (CA) cold storage facility, with a total
capacity of around 5700 tonnes per annum (with 24 chambers) in
Himachal Pradesh, where it will provide storage, mainly for
apples and also other products such as garlic, grapes, and kiwis.
SHRI RAM: CRISIL Withdraws B Rating on INR12.5MM Cash Loan
----------------------------------------------------------
CRISIL Ratings has been consistently following up with Shri Ram
Rice Unit (SRU) for obtaining information through letters and
emails dated July 10, 2017, and August 7, 2017, among others,
apart from telephonic communication. However, the issuer has
remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 12.5 CRISIL B/Stable (Issuer Not
Cooperating; Rating Withdrawal)
Proposed Long Term 3.5 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating; Rating Withdrawal)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as they are arrived at without any
management interaction and are based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of SRU. This restricts CRISIL's
ability to take a forward SRU is consistent with 'Scenario 1'
outlined in the 'Framework for Assessing Consistency of
Information with CRISIL BB rating category or lower. Based on the
last available information, the rating on bank facilities of SRU
continues to be 'CRISIL B/Stable/CRISIL A4 Issuer Not
Cooperating'.
CRISIL has withdrawn its ratings on the bank facilities of SRU on
the request of the company and receipt of a no objection / due
certificate from its bank. The rating action is in line with
CRISIL's policy on withdrawal of its ratings on bank loans
Established in 1991, SRU is a partnership firm promoted by Mr.
Sadhu Ram, Mr. Ravinder Kumar, Mr. Parmod Kumar, Mr. Vijay Kumar,
and Mr. Sanjay Kumar. The firm mills and processes rice, both
basmati and non-basmati varieties. It has a processing unit at
Taraori, Punjab.
STARWOOD TECHNO: CRISIL Moves B Rating to Not Cooperating Cat.
--------------------------------------------------------------
CRISIL Ratings has been consistently following up with Starwood
Techno Industries Private Limited (STIPL) for obtaining
information through letters and emails dated December 18, 2017
and January 17, 2018 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 4.7 CRISIL B/Stable (Issuer Not
Cooperating; Rating Migrated)
Proposed Long Term 0.3 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating; Rating Migrated)
Term Loan 4.0 CRISIL B/Stable (Issuer Not
Cooperating; Rating Migrated)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Starwood Techno Industries
Private Limited. Which restricts CRISIL's ability to take a
forward looking view on the entity's credit quality. CRISIL
believes information available on Starwood Techno Industries
Private Limited is consistent with 'Scenario 1' outlined in the
'Framework for Assessing Consistency of Information with CRISIL
BB' rating category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of Starwood Techno Industries Private Limited to
'CRISIL B/Stable Issuer not cooperating'.
Incorporated in 2016, STIPL has set up a project in Nanded
(Maharashtra) to manufacture LED (light emitting diode) and CRT
(cathode ray tube) televisions (TV). The project will start
commercial operations in December 2016. The promoters'Mr
Kanhaiyalal Rangani, Mr Dilip Rangani, Mrs Vimla Devi Rangani and
Mrs Komal Rangani'had two other proprietorship firms, Parisons
Electronics (PE) and Kings Electronics (KE) which were importing
LED and CRT TVs from China and selling it under its own brand
'Starwood'. Both firms ceased operations in March 2016 and the
business was taken over by STIPL. STIPL plans to stop trading
operations once its manufacturing operations stabilises.
SUNITI PROVA: CRISIL Assigns 'B' Rating to INR2.50MM Cash Loan
--------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B/Stable' rating to the
long-term bank facilities of Suniti Prova Cold Storage (SPCS).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility .85 CRISIL B/Stable (Assigned)
Cash Credit 2.50 CRISIL B/Stable (Assigned)
Long Term Loan 1.65 CRISIL B/Stable (Assigned)
The rating reflects the firm's weak financial risk profile
because of small networth and subdued capital structure,
susceptibility to regulatory changes, and exposure to competition
in the fragmented cold storage industry. These weaknesses are
partially offset by its promoters' considerable experience in the
cold storage business.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations in intensely competitive industry:
SPCS has been providing cold storage services and trading in
potatoes for around a decade. However, its scale of operations
remains modest, reflected in revenue of INR6.6 crore for fiscal
2017 (INR5.7 crore for fiscal 2016).
* Regulated storage rate and vulnerability to delay in payments
by farmers: The cold storage industry is regulated by state cold
storage associations. The rental rates are fixed by Department of
Agricultural Marketing. As part of the government's initiative to
support agriculture, banks extend financial assistance to farmers
storing produce in private cold storages against pledge of cold
storage receipt. The cold storage takes loans from banks and
extends the loans to farmers. However, the primary responsibility
to repay the bank loan along with interest remains with cold
storages. Farmers are required to clear their dues (loans and
storage charges) before withdrawing their stock from the cold
storage. During adverse market conditions and decline in potato
prices, farmers may not find it profitable to pay rental and
interest charges along with the loan principal, and hence, may
not retrieve potatoes from cold storages, affecting the
profitability of cold storage players.
* Small networth: SPCS has a small networth (INR1.56 crore as on
March 31, 2016 on account of low accretion to reserves resulting
from small scale of operations, despite high operating margin.
The small networth constrains financial flexibility. The networth
declined to INR0.85 crore as on March 31, 2017, on account of
capital withdrawal.
Strength:
* Promoters' experience in the cold storage and potato trading
businesses: The promoters have been in the cold storage business
for around 10 years, and have experience of over two decades in
potato trading. Over the years, they have developed healthy
relationships with traders and farmers, and good understanding of
the industry, which has helped SPCS ensure healthy utilisation of
its storage capacity (90% in fiscal 2017).
Outlook: Stable
CRISIL believes SPCS will continue to benefit from its promoters'
experience in the cold storage business. The outlook may be
revised to 'Positive' if the firm efficiently manages farmer
financing, and significant ramps up revenue and profitability.
The outlook may be revised to 'Negative' if delays in payments by
farmers, lower-than-expected cash accrual, or debt-funded capital
expenditure leads to pressure on liquidity.
Set up in 2009 by Mr Gautam Dutta and Ms Kajal Dutta, SPCS
operates a cold storage unit at Sonitpur (Assam) with capacity of
10,500 quintals in 2 chambers. One chamber is utilised for
storage of potatoes and the other for storage of green apples,
apples, and seeds. The firm is also engaged in trading of
potatoes.
UNIQUE CHAINS: CRISIL Moves B+ Rating to Not Cooperating Category
-----------------------------------------------------------------
CRISIL Ratings has been consistently following up with Unique
Chains Private Limited (UCPL) for obtaining information through
letters and emails dated December 18, 2017 and January 17, 2018
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 10 CRISIL B+/Stable (Issuer Not
Cooperating; Rating Migrated)
Proposed Long Term 10 CRISIL B+/Stable (Issuer Not
Bank Loan Facility Cooperating; Rating Migrated)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Unique Chains Private Limited.
Which restricts CRISIL's ability to take a forward looking view
on the entity's credit quality. CRISIL believes information
available on Unique Chains Private Limited is consistent with
'Scenario 1' outlined in the 'Framework for Assessing Consistency
of Information with CRISIL BB' rating category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of Unique Chains Private Limited to 'CRISIL B+/Stable
Issuer not cooperating'.
UCPL was started as proprietorship concern by Mr. Prem Mehra in
1977. In 2010, it was incorporated as a private-limited company.
The existing directors are Mr. Prem Mehra, his wife Ms. Pooja
Mehra and sons, Mr. Ankit Mehra and Mr. Saiyam Mehra. The company
manufactures, designs, and undertakes labour jobs of gold and has
its manufacturing facility in Dadar (Mumbai).
VEDSIDHA PRODUCTS: CRISIL Moves D Rating to Not Cooperating Cat.
----------------------------------------------------------------
CRISIL Ratings has been consistently following up with Vedsidha
Products Private Limited (VPPL) for obtaining information through
letters and emails dated December 18, 2017 and January 17, 2018
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 4.5 CRISIL D (Issuer Not
Cooperating; Rating Migrated)
Proposed Long Term 3.0 CRISIL D (Issuer Not
Bank Loan Facility Cooperating; Rating Migrated)
Term Loan 19.5 CRISIL D (Issuer Not
Cooperating; Rating Migrated)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Vedsidha Products Private
Limited. Which restricts CRISIL's ability to take a forward
looking view on the entity's credit quality. CRISIL believes
information available on Vedsidha Products Private Limited is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of Vedsidha Products Private Limited to 'CRISIL D
Issuer not cooperating'.
Furthermore, the company has not paid the fee for conducting
rating surveillance as agreed to in the rating agreement.
VPPL is promoted by Nagpur (Maharashtra)-based Mr Prabhudas Vyas
and Mr Niranjan Ranka. The company has set up a plant to
manufacture autoclaved aerated concrete blocks near Nagpur.
VRAJ PSYLLIUM: CRISIL Assigns 'B' Rating to INR4.8MM Term Loan
--------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B/Stable' rating to the
long-term bank facilities of Vraj Psyllium (Vraj).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 2.3 CRISIL B/Stable
Rupee Term Loan 4.8 CRISIL B/Stable
The rating reflects firm's modest scale of operations, average
financial risk profile, and vulnerability to fluctuations in raw
material prices. These weaknesses are partially offset by
proximity to the psyllium seed-growing belts in Gujarat, and the
partners' extensive experience in the industry.
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations amid intense competition: Fiscal
2018 is the first year of operations for the firm. Given its
early stage of operations, its scale is expected to remain
modest. Additionally, the industry has a large number of
unorganised players, leading to intense competition.
* Average financial risk profile: As the firm is in the initial
phase of operations, its networth is small. Due to debt-funded
capital expenditure and large working capital borrowings, gearing
is expected to remain high in the near term.
* Vulnerability to raw material price fluctuation: Operating
margin is susceptible to any sharp volatility in the cost of
psyllium seeds, a key raw material which accounts for a
significant proportion of production cost. Availability of
psyllium seeds is seasonal (March to June), necessitating
considerable inventory, and the company is susceptible to adverse
movements in isabgol seed prices, which may affect profitability.
Adverse climatic conditions can also affect revenue and
profitability.
Strengths
* Healthy demand prospects and advantageous location in terms of
raw material supply: Psyllium husk is a herbal supplement. India
accounts for 80% of the global psyllium production. Also,
Gujarat, where the firm's manufacturing facility is located, and
neighbouring state Rajasthan, are the major hubs for psyllium
production in the country. The advantageous location ensures
adequate supply of raw material at low transportation cost.
* Partners' extensive industry experience: The key partners'
experience of over a decade and knowledge of the industry should
help the firm scale up operations and establish healthy
relationships with customers in India and abroad.
Outlook: Stable
CRISIL believes Vraj will continue to benefit from healthy demand
prospects for psyllium husk and its favourable location.
Upside scenario
* Significant ramp-up of operations resulting in higher-than-
expected revenue and cash accrual, leading to improvement in
financial risk profile
Downside scenario
* Considerably larger-than-expected working capital requirement
or debt-funded capital expenditure, weakening the financial risk
profile
Vraj was established in 2011 as a partnership firm promoted by
the Patel and Sandesara families. The firm processes psyllium
seed (popularly known as isabgol). Its major products include
psyllium husk and powder, organic psyllium, and psyllium cattle
feed. Its manufacturing unit is at Patan, Gujarat.
It started commercial operations in fiscal 2018.
=================
I N D O N E S I A
=================
MAXWELL INTERNATIONAL: New HK Investors Buy Company's Shares
------------------------------------------------------------
Supriya Surendran at The Edge Markets reports that Maxwell
International Holdings Bhd saw the emergence of two new Hong Kong
shareholders who bought the shares "for investment", filings
shows.
A March 26 filing shows Leung Heung Yu buying 96.38 million
shares or a 24.17% stake on Jan. 17, the report discloses.
A separate filing, dated March 26, shows Chong Fong Yu holding a
7.35% stake after buying 29.3 million shares or a 7.35% stake on
Feb. 28, according to the report.
The PN17 company has until the end of June to submit its
regularisation plan to Bursa Malaysia, The Edge notes.
Maxwell International Holdings Berhad is a Malaysia-based
investment holding company. The Company is engaged in the
manufacture of sports shoes mainly in the People's Republic of
China. It designs and manufactures of a variety of sports
footwear, including court sports, such as basketball shoes,
volleyball shoes and badminton shoes; running and casual or
leisure sports shoes, such as hiking shoes and casual walking
shoes. Maxwell is the original equipment manufacturer and
original design manufacturer for a host of third-party brands.
Maxwell distributes its products to international customers
directly, as well as via trading houses and brand distributors.
Maxwell's end user markets include Europe, America, and Asia,
consisting mainly of Japan, South Korea, Singapore, Hong Kong,
Malaysia and Saudi Arabia. The Company's subsidiaries include
Zhenxing Shoes, Maxwell Global Investment Limited and Maxwell
International Trading Sdn. Bhd.
Maxwell had slipped into PN17 status on Aug. 2, 2016 after its
external auditors expressed a disclaimer opinion in its audited
financial statements for the financial year ended Dec. 31, 2015.
=========
J A P A N
=========
TAKATA CORP: Dist. Ct. OK's Proposed Restitution Fund Methodology
-----------------------------------------------------------------
District Judge George Caram Steeh issued an order granting the
Special Master's Request for Approval of the Revised Proposed
Individual Restitution Fund Methodology and overruling the
Defendant's objection in the case captioned UNITED STATES OF
AMERICA, Plaintiff, v. TAKATA CORPORATION, Defendant, Case No.
16-CR-20810 (E.D. Mich.).
Takata argues the Proposed Methodology should be rejected because
it is based, in part, on the "intention of the prosecuting
governmental authorities," rather than on the plain language of
the Plea Agreement. The Court has already determined that the
language of the Plea Agreement supports the Court's conclusion
here that it is appropriate to limit the class of Eligible
Claimants to the definition set forth by the Special Master in
his Proposed Methodology. Takata argues the court should afford
greater weight to its interpretation of the individual
restitution claimants as defined by the Plea Agreement than to
the government's interpretation because any ambiguities in the
Plea Agreement must be resolved in favor of Takata.
Takata correctly states that law that plea agreements are
contractual in nature and courts may use traditional principles
of contract law in interpreting and enforcing them. Furthermore,
Takata is correct that ambiguities in plea agreements are to be
construed against the government. Id. But here, the parties
expressly contracted that the identity of individual claimants
was left to the Special Master to identify in proposed findings
of fact and recommendations to this Court. Accordingly, there is
no ambiguity in the Plea Agreement. Because the Court does not
base its holding here on a preference for the government's
interpretation of the Plea Agreement over Takata's
interpretation, the court rejects Takata's objection.
Takata also argues that because the Special Master has not
imposed any geographical limitation for restitution to the
automotive manufacturers ("OEMs"), there is no rational basis for
treating individuals differently. To the contrary, the Court
finds that it reasonable to treat individuals differently than
the OEMs. First, the Restitution Fund for the OEMs is
significantly larger. The OEM Restitution Fund is $850,000,000
while the Individual Restitution Fund is only $125,000,000. The
Special Master had identified less than 100 OEMs, whereas
individual claimants even under the Special Master's definition,
which sets forth a geographic and nationality limitation, could
measure in the thousands.
Finally, the court considers Takata's argument that a global
definition of personal injury claimants is consistent with
Takata's treatment of such claimants in its insolvency
proceedings. Takata states that it is in the midst of
rehabilitation proceedings in Japan, which have been formally
recognized by the United States Bankruptcy Court, and its United
States subsidiary and related entities are in Chapter 11
proceedings in the United States. Foreign claimants have remedies
in the Takata bankruptcy. This matter involves a criminal
prosecution brought by the United States in the United States
District Court for a violation of the laws of the United States,
and on behalf of persons of the United States. The fact that the
foreign claimants may have recourse in the international
bankruptcy proceedings does not alter this Court's decision to
adopt the Special Master's recommendation that Eligible
Claimants be defined domestically.
A full-text copy of Judge Steeh's Order dated March 21, 2018 is
available at https://is.gd/Dv48lY from Leagle.com.
Eric D. Green, Special Master, represented by David J. Molton --
dmolton@brownrudnick.com -- Brown Rudnick LLP & Howard S. Steel
-- hsteel@brownrudnick.com -- Brown Rudnick LLP.
United States of America, Plaintiff, represented by Erin Shaw,
U.S. Attorney's Office, Brian Kidd, U.S. Department of Justice
Criminal Division, Fraud Section, Christopher D. Jackson, U.S.
Department of Justice Criminal Division, Fraud Section & John K.
Neal, United States Attorney's Office.
About Takata
Japan-based Takata Corporation (TYO:7312) --
http://www.takata.com/en/-- develops, manufactures and sells
safety products for automobiles. The Company offers seatbelts,
airbags, steering wheels, child seats and trim parts.
Headquartered in Tokyo, Japan, Takata operates 56 plants in 20
countries with approximately 46,000 global employees worldwide.
The Company has subsidiaries located in Japan, the United States,
Brazil, Germany, Thailand, Philippines, Romania, Singapore,
Korea, China and other countries.
Takata Corp. filed for bankruptcy protection in Tokyo and the
U.S., amid recall costs and lawsuits over its defective airbags.
Takata and its Japanese subsidiaries commenced proceedings under
the Civil Rehabilitation Act in Japan in the Tokyo District Court
on June 25, 2017.
Takata's main U.S. subsidiary TK Holdings Inc. and 11 of its U.S.
and Mexican affiliates each filed voluntary petitions under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case
No. 17-11375) on June 25, 2017. Together with the bankruptcy
filings, Takata announced it has reached a deal to sell all its
global assets and operations to Key Safety Systems (KSS) for
US$1.588 billion.
Nagashima Ohno & Tsunematsu is Takata's counsel in the Japanese
proceedings. Weil, Gotshal & Manges LLP and Richards, Layton &
Finger, P.A., are serving as counsel in the U.S. cases.
PricewaterhouseCooper54 is serving as financial advisor, and
Lazard is serving as investment banker to Takata. Ernst & Young
LLP is tax advisor. Prime Clerk is the claims and noticing
agent. The Debtors Meunier Carlin & Curfman LLC, as special
intellectual property counsel.
Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal
counsel, KPMG is serving as financial advisor, Jefferies LLC is
acting as lead financial advisor. UBS Investment Bank also
provides financial advice to KSS.
On June 28, 2017, TK Holdings, as the foreign representative of
the Chapter 11 Debtors, obtained an order of the Ontario Superior
Court of Justice (Commercial List) granting, among other things,
a stay of proceedings against the Chapter 11 Debtors pursuant to
Part IV of the Companies' Creditors Arrangement Act. The
Canadian Court appointed FTI Consulting Canada Inc. as
information officer. TK Holdings, as the foreign representative,
is represented by McCarthy Tetrault LLP.
The U.S. Trustee has appointed an Official Committee of Unsecured
Trade Creditors and a separate Official Committee of Tort
Claimants.
The Official Committee of Unsecured Creditors has selected
Christopher M. Samis, Esq., L. Katherine Good, Esq., and Kevin F.
Shaw, Esq., at Whiteford, Taylor & Preston LLC, in Wilmington,
Delaware; Dennis F. Dunne, Esq., Abhilash M. Raval, Esq., and
Tyson Lomazow, Esq., at Milbank Tweed Hadley & McCloy LLP, in New
York; and Andrew M. Leblanc, Esq., at Milbank, Tweed, Hadley &
McCloy LLP, in Washington, D.C., as its bankruptcy counsel. The
Committee has also tapped Chuo Sogo Law Office PC as Japan
counsel.
The Official Committee of Tort Claimants selected Pachulski Stang
Ziehl & Jones LLP as counsel. Gilbert LLP will evaluate of the
insurance policies. Sakura Kyodo Law Offices will serve as
special counsel.
Roger Frankel, the legal representative for future personal
injury claimants of TK Holdings Inc., et al., tapped Frankel
Wyron LLP and Ashby & Geddes PA to serve as co-counsel.
Takata Corporation ("TKJP") and affiliates Takata Kyushu
Corporation and Takata Services Corporation commenced Chapter 15
cases (Bankr. D. Del. Case Nos. 17-11713 to 17-11715) on Aug. 9,
2017, to seek U.S. recognition of the civil rehabilitation
proceedings in Japan. The Hon. Brendan Linehan Shannon oversees
the Chapter 15 cases. Young, Conaway, Stargatt & Taylor, LLP,
serves as Takata's counsel in the Chapter 15 cases.
* * *
Takata Corporation on Feb. 21, 2018, disclosed that the U.S.
Bankruptcy Court for the District of Delaware has confirmed the
Fifth Amended Chapter 11 Plan of Reorganization filed by TK
Holdings, Inc. ("TKH"), Takata's main U.S. subsidiary, and
certain of TKH's subsidiaries and affiliates.
====================
N E W Z E A L A N D
====================
PREET & CO: Goes Into Liquidation Owing NZ$14 Million
-----------------------------------------------------
Nick Krause at Times Online reports that Preet & Co Real Estate
(PEL) and Preet & Co Rentals (PRL) have now gone into liquidation
owing creditors at least NZ$14 million.
PEL held the franchise rights for the Harcourts' brand for south
and east Auckland for the sales arm of the business. It had 10
branches with offices in Botany, Ellerslie, Otahuhu, Howick,
Manukau (two sites), Pakuranga, Papatoetoe, Meadowlands and
Manurewa.
Administrators -- and now liquidators -- Meltzer Mason were
called in on November 22 "on appointment by a secured creditor"
to allow the insolvency group to take control of the affairs to
see if there was a way forward for "an otherwise successful
business," according to the report.
Company administration aims to help a company repay debts in
order to escape insolvency if possible, whereas liquidation is
the process of selling all assets before dissolving the company
completely.
Times Online relates that a Meltzer Mason report to creditors
said the sole director and shareholder of the group, Gurpreet
Grewal, was referred to Meltzer Mason by a firm of accountants
who acted for the shareholding trusts for the Harcourts group in
New Zealand.
According to Times Online, the report said anomalies were
discovered in the trust accounts of the Preet companies around
August/September and are being investigated by the Real Estate
Agents Authority (REAA). For about a month prior to the
appointment of Meltzer Mason, the administrators had some
involvement while Mr. Grewal worked with Harcourts and a secured
creditor to see if a plan could achieve full repayment of all
creditors. Ultimately, this did not occur and the administrators
were brought in.
Mr. Grewal tried to keep a lid on things assuring the
administrators he was committed to paying all creditors, adding
that once the appointment of Meltzer Mason became public, the
business would be "rendered useless", the report said.
According to Times Online, the administrators said Preet & Co had
traded relatively well but had expanded quickly. There was
significant secured debt and the companies had significant
funding requirements but were unable to secure financing. As a
result of the REAA investigation, Mr. Grewal had volunteered to
relinquish his licence while investigations were undertaken.
"In the administrators' assessment, the rapid expansion, coupled
with potentially overvalued acquisitions and the high level of
borrowing, led to working capital deficiencies," the report, as
cited by Times Online, said. "It is relevant that this programme
of growth was undertaken when the value of real estate in
Auckland was rising annually at very high percentages."
Times Online notes that as to the companies' financial accounts,
draft figures for the year to March 31, 2017 record a NZ$380,610
profit on turnover of NZ$12.688 million for PEL and a net loss of
NZ$2,232 on a turnover of NZ$852,210 for PRL. Net assets were
recorded on the balance sheets as NZ$1.695 million for PEL and
net liabilities of NZ$127,930 for PRL.
As at the date of appointment of Meltzer Mason, there were two
secured creditors -- Bank of New Zealand (first ranking) owed
NZ$10.179 million and Harcourts Group (second ranking) for
NZ$1.2 million, Times Online discloses.
Unsecured creditors are the Inland Revenue (NZ$2.262 million),
known trade creditors -- Preet & Co Real Estate (NZ$859,749) and
known creditors -- Preet & Co Rentals (NZ$20,817) for a total of
NZ$14,521,951 as at November 22, 2017, adds Times Online.
====================
S O U T H K O R E A
====================
STX OFFSHORE: KDB Approves Self-Rescue Plan
-------------------------------------------
The Maritime Executive reports that the state-run Korea
Development Bank (KDB), has accepted STX Offshore &
Shipbuilding's self-rescue plan and withdrawn its plan to put the
yard under court receivership.
According to the report, KDB is the main yard's main creditor,
and the deal comes a day after STX management reached a deal with
its labor union to accept terms laid out by the creditors
involving a 75 percent cut in labor costs. STX said it can make
the cuts through salary cuts rather than large numbers of
layoffs. Measures agreed to by the union include voluntary
retirement, outsourcing and a reduction in some employee
benefits.
Earlier last week, the bank said STX would be placed under court
receivership "in principle" after the union failed to accept an
earlier restructuring plan due to proposed layoffs, the report
says.
The Maritime Executive relates that the new restructuring plan
also involves measures so that KDB can issue refund guarantees
for new ships.
The yard previously filed for court receivership in May 2016, but
by mid-2017 it had made progress in its economic recovery plan
and had managed to meet its debt payment schedule, the Maritime
Executive recalls.
STX Offshore & Shipbuilding Co. Ltd. is a Korea-based company
mainly engaged in the shipbuilding and offshore business. The
company operates its business through five segments: merchant
vessel, cruise, offshore and specialized vessel (OSV), vessel
apparatus and other segment.
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
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about which we report.
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Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2018. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
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*** End of Transmission ***