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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, January 4, 2019, Vol. 22, No. 003
Headlines
A U S T R A L I A
DHARF PTY: First Creditors' Meeting Set for Jan. 14
C H I N A
IDEANOMICS INC: Signs Deal for Tianjin Bus Conversion Financing
PANDA GREEN: S&P Keeps CCC+ Long-Term ICR on CreditWatch Negative
I N D I A
3B BINANI: CARE Reaffirms D Rating on INR1,574.26cr LT Loan
AIRCEL LIMITED: ICRA Maintains D Rating in Not Cooperating
ASHAPURA INTIMATES: CARE Migrates C Rating to Not Cooperating
CH.GOWRI SHANKAR: Ind-Ra Moves BB+ LT Rating to Non-Cooperating
C.P. SPONGE: CARE Lowers Rating on INR20cr LT Loan to D
DEV'S CHEM: Ind-Ra Migrates BB- Issuer Rating to Non-Cooperating
DEVANSHI CONSTRUCTION: CARE Reaffirms D Rating on INR6.78cr Loan
FEPL ENGINEERING: CARE Moves 'D' Rating to Not Cooperating
GINNI HOLDINGS: ICRA Maintains 'D' Rating in Not Cooperating
GOEL EXIM: ICRA Maintains D Rating in Not Cooperating Category
GOVARDANAGIRI AGRO: Ind-Ra Lowers Long Term Issuer Rating to 'D'
GUJARAT AMBUJA: Faces Insolvency Petition Over Unpaid Dues
HANSRAJ MEMORIAL: CARE Lowers Rating on INR19.90cr Loan to D
JEYENKAY PETROGELS: ICRA Hikes Rating on INR11cr Loan from D
MADHUCON PROJECTS: ICRA Moves D Rating to Not Cooperating
MALWA AGRO: Ind-Ra Lowers Long Term Issuer Rating to 'BB+'
MDA MINERAL: ICRA Maintains C+ Rating in Not Cooperating
MISTRY ENTERPRISES: ICRA Maintains D Rating in Not Cooperating
MOMAI APPARELS: CARE Moves CARE C(SO) Rating to Not Cooperating
NATHELLA SAMPATH: CARE Maintains D Rating in Not Cooperating
PANYAM CEMENTS: CARE Moves D Rating to Not Cooperating Category
PARAMOUNT WHEELS: ICRA Lowers Rating on INR13cr Cash Loan to D
PRANI AUTO: ICRA Maintains 'D' Rating in Not Cooperating
RAM COIR: Ind-Ra Migrates B+ LT Issuer Rating to Non-Cooperating
RANA SUGARS: ICRA Migrates D Rating to Not Cooperating Category
RTIL: NCLT Mumbai Puts Liquidation Plans on Hold
SHREE R.R.PIPES: CARE Maintains D Rating in Not Cooperating
SHREE RAJ: ICRA Maintains D Rating in Not Cooperating Category
SHRI BALAJI: ICRA Reaffirms D Rating on INR65cr Term Loan
SRINAGAR BANIHAL: ICRA Moves D Rating to Not Cooperating
SURYA PLASTIC: CARE Maintains 'D' Rating in Not Cooperating
SUSHEE INFRA: Ind-Ra Migrates 'D' LT Rating to Non-Cooperating
VINTAGE HOME: CARE Lowers Rating on INR5.75cr LT Loan to D
VIZAG PROFILES: CARE Moves D Rating to Not Cooperating Category
S I N G A P O R E
FORELAND FABRICTECH: Q3 Net Loss Widens to SGD196,500
HYFLUX: Gets More Time to Report Financial Results, Conduct AGM
S O U T H K O R E A
NIPPON STEEL: Wartime Laborers File for JV Asset Seizure
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A U S T R A L I A
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DHARF PTY: First Creditors' Meeting Set for Jan. 14
---------------------------------------------------
A first meeting of the creditors in the proceedings of Dharf Pty
Ltd will be held at the offices of SM Solvency Accountants, at
Level 8/490 Upper Edward Street, in Spring Hill, Queensland, on
Jan. 14, 2019, at 10:00 a.m.
Brendan Nixon of SM Solvency Accountants was appointed as
administrator of Dharf Pty on Jan. 3, 2019.
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C H I N A
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IDEANOMICS INC: Signs Deal for Tianjin Bus Conversion Financing
---------------------------------------------------------------
Ideanomics has entered into an agreement with the National
Transportation Capacity Co Ltd (NTS), as a specific financing
mandate under the original framework agreement announced by
Ideanomics in August 2018. This additional agreement is for the
initial tranche of asset-backed financing and comes as a result
of NTS finalizing a deal with the city of Tianjin, China's
fourth-largest city, to re-finance existing asset-backed
financing for electric bus conversion, valued at over 57Billion
RMB (approximately $8.25Billion USD). This initial mandate from
NTS is the first of several anticipated in the coming months
under the 260Billion RMB framework agreement between NTS and
Ideanomics.
Under the terms of deal, Ideanomics will provide advisory
services to NTS, including working with established financial
services partners to assist with the underwriting, marketing, and
sale of the financing. Ideanomics is finalizing terms with those
partner firms and anticipates being able to make partner
announcements in the near-term. The Company will derive revenues
under the deal based on fees of 1% of financing raised. This
amount is net of partner fees but will be subject to certain
underwriting and marketing costs.
The market size for the mandatory replacements and upgrades to
achieve fully-electric bus operations in China is estimated at
1Trillion RMB (approx. $145B), with the Chinese government
requiring the conversion of public transport vehicles to electric
power by 2021. NTS is the largest full-service provider for
electric bus operators with sales, lease financing, a charging
station network, and real-time data services including media,
payments, maps, and facial recognition.
The re-financing program Ideanomics has developed is designed to
save cities and municipalities 2% or more versus traditional
annual interest rates for this type of asset-backed financing.
The Company intends to launch a blockchain-based asset
registration platform, subject to the city operators' endorsement
and systems support, in conjunction with the re-financing
program. This registration platform is intended to deliver the
highest-level of transparency for the underlying assets provided
as the foundation for underwriting the offering and, as a result,
elevate asset registration beyond traditional asset monitoring
methods.
Alfred Poor, president & COO, of Ideanomics, "We are very
grateful to our colleagues in China for their hard work and
effort since securing the original agreement with NTS, which has
resulted in securing the first mandate under that deal. We are
now focused on working with our institutional banking partners in
the region to secure the required re-financing for the city of
Tianjin's electric bus conversion project. We anticipate the
offering will come to market in Q1 and extend through Q2 and Q3,
until the financing mandate is filled. This deal enables us to
demonstrate Ideanomics' core strengths of deal origination and
enablement, along with the application of new technologies which
we believe will form part of the evolution of the financial
services industry."
About Ideanomics
Ideanomics, formerly known as Seven Stars Cloud Group, Inc.,
seeks to become a next generation fintech company by leveraging
blockchain and artificial intelligence technologies. The Company
is headquartered in New York, NY, and has planned a "Fintech
Village" center for Technology and Innovation in West Hartford,
CT, and has offices in London, Hong Kong and Beijing, China.
Seven Stars reported a net loss of $10.19 million for the year
ended Dec. 31, 2017, compared to a net loss of $28.50 million for
the year ended Dec. 31, 2016. As of Sept. 30, 2018, Ideanomics
had $167.72 million in total assets, $123.10 million in total
liabilities, $1.26 million in convertible redeemable preferred
stock, and $43.35 million in total equity.
B F Borgers CPA PC's report on the consolidated financial
statements for the year ended Dec. 31, 2017, contains an
explanatory paragraph expressing substantial doubt regarding the
Company's ability to continue as a going concern. The auditors
stated that the Company incurred recurring losses from
operations, has net current liabilities and an accumulated
deficit that raise substantial doubt about its ability to
continue as a going concern.
PANDA GREEN: S&P Keeps CCC+ Long-Term ICR on CreditWatch Negative
-----------------------------------------------------------------
S&P Global Ratings said that it had kept its 'CCC+' long-term
issuer credit rating on Panda Green Energy Group Ltd. (PGE) on
CreditWatch with negative implications. The 'CCC' issue rating on
the company's senior unsecured notes also remains on CreditWatch
with negative implications.
PGE is a Hong Kong-listed solar power operator with a
consolidated installed capacity of about 1.8 gigawatts as of
June 30, 2018.
S&P said, "PGE successfully refinanced US$100 million in
convertible bonds (CB) due in December 2018, but its capital
structure remains vulnerable and unsustainable in the long-term,
in our view. We expect PGE to continue to face near-term debt
maturities including around Chinese renminbi (RMB) 1.2 billion of
domestic bank loans due by June 2019 as well as US$350 million in
senior unsecured bonds due on Jan. 25, 2020."
The CreditWatch negative status reflects PGE's continuing weak
liquidity position and low visibility of a clear pathway to
refinance the near-term debt maturities. While the company
expects to execute a series of new share subscription agreements,
the timing and final amount remains uncertain. PGE's inherent
cash flow generation also remains weak while it suffers from
delays in the receipt of renewable subsidies from the government.
On Dec. 26, 2018, PGE entered into a new loan agreement with
Qingdao City Construction Investment (QCCI) to repay and
extinguish the US$100 million CB held by QCCI previously.
According to the agreement and confirmation by PGE's management,
proceeds from the loan have been used to redeem the U.S. dollar
CB due on Dec. 29, 2018, and the corresponding certificates have
been cancelled. PGE also confirmed that it has redeemed its
HK$233 million CB on Dec. 24, 2018, using internal resources.
On Dec. 27, 2018, PGE also announced that it has entered into a
series of non-legal binding memorandum of understandings (MOU)
with its existing shareholders for subscription to new PGE shares
to support its capital structure. These include China Merchants
New Energy (no more than 1.35 billion new shares), Huarong (no
more than 0.94 billion shares), Orix (no more than 0.69 billion
new shares), Asia Pacific Energy & Infrastructure Investment
Group (no more than 0.32 billion new shares), as well as QCCI,
the lender of the new loan (no more than 3.21 billion new
shares). The subscription price of these new shares will be
HK$0.3 per share. PGE is hoping to reach an agreement with these
parties within 120 days since the MOUs were respectively signed.
S&P said, "Nevertheless, we expect PGE's cash resources to remain
insufficient to repay its near-term debt maturities even if all
its existing shareholders were to subscribe to the planned
additional shares. We anticipate the additional shares to be
subscribed by existing shareholders will provide around HK$1
billion of additional liquidity to PGE. In terms of new share
placement to QCCI, we expect the principal from the new loan will
eventually be used as the proceeds for new share subscriptions.
"Further, as new shares are issued, we will closely monitor if it
could eventually affect China Merchants' position as the largest
shareholder of PGE, which could possibly heighten PGE's
refinancing risk.
"While shareholders are looking at ways to support PGE, the
absence of a firm refinancing plan, particularly on hard
maturities such as its U.S. dollar bond, reflects a weaker
management and governance position; thus we have also lowered
PGE's management and governance score to weak." There could put
further downward pressure on the rating on PGE if a clear
financing plan has not been announced by April 2019.
The CreditWatch negative status reflects PGE's continuing weak
liquidity and vulnerability of its capital structure in the
absence of a clear refinancing plan for its near-term debt
maturities. It also takes into consideration of PGE's weak cash
flow generation ability and constant delay in subsidy receivables
from the government. A delay in the execution of the share
subscription agreement could further deteriorate PGE's liquidity
position.
S&P will continue to monitor the progress and timing of the
additional share issuance, potential further support from PGE's
shareholders to strengthen its capital structure, the renewable
subsidy collection process, as well as strategy and actions to
address the near-term debt maturities. Absence of any meaningful
development and clarity on the refinancing strategy by April 2019
could lead to further downward pressure on the rating.
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I N D I A
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3B BINANI: CARE Reaffirms D Rating on INR1,574.26cr LT Loan
-----------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
3B Binani Glassfibre SARL, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-Term Bank
Facilities 1,574.26 CARE D Reaffirmed
Detailed Rationale & Key Rating Drivers
The revision in the rating of 3B Binani Glassfibre SARL factors
in the delay in debt servicing. The liquidity profile of the
group continues to be under stress.
Detailed description of the key rating drivers
Key Rating Weaknesses
Ongoing delays in debt servicing: As per the management
interaction, there has been continuous delay in payment of
quarterly Interest. As per the management, company has not paid
interest component since the bank has filed case in NCLT against
its guarantor i.e. Binani cement Ltd for an amount equivalent to
outstanding bank loan of 3B Binani Glasfiber SARL plus one
advance interest installment. Analytical approach: Standalone
3B Binani Glassfibre Sarl (3B Binani) part of Braj Binani group,
is Europe's leading manufacturer of fibreglass for reinforcement
of thermoplastics and thermoset polymer applications and is a
preferred supplier for companies in the automotive and wind
energy sectors. Over 90% of 3B Binani's customers are based in
Europe. 3B Binani is a holding company. The group has three
manufacturing facilities: a) At Battice (Belgium) - in the books
of 3B Fibreglass SPRL b) At Birkeland (Norway) - housed in the
books of 3B Fibreglass Norway c) At Goa (India) - in the books of
Goa Glass Fibre Ltd.; acquired in 2013 3B Binani's product
portfolio comprises dry use chopped strands, continuous filament
mats, direct rovings, speciality wetuse shopped strands, milled
fibres and yarns.
AIRCEL LIMITED: ICRA Maintains D Rating in Not Cooperating
---------------------------------------------------------
ICRA said the ratings for the INR17,479-crore bank facilities of
Aircel Limited continue to remain in the 'Issuer Not Cooperating'
category. The rating is denoted as "[ICRA]B (Stable) ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based/ 17,479^ [ICRA]D ISSUER NOT COOPERATING*;
Non-fund Rating continues to remain
Based Limits under 'Issuer Not Cooperating'
category
*Issuer did not co-operate; based on best available information
^These limits are consolidated for Aircel Group; interchangeable
among Aircel Limited, Aircel Cellular Limited, Dishnet Wireless
Limited and Aircel Smart Money Limited
Rationale
The rating takes a consolidated view on the credit risk profiles
of Aircel Limited and its wholly-owned subsidiaries Aircel
Cellular Limited, Dishnet Wireless Limited and Aircel Smart Money
Limited. The four entities are together referred to as Aircel.
The rating takes into account continued delays in debt servicing
by the entity. As part of its process and in accordance with its
rating agreement with Aircel, ICRA has been trying to seek
information from the entity so as to monitor its performance, but
despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite
information, and in line with SEBI's Circular No.
SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, ICRA's
Rating Committee has taken a rating view based on the best
available information.
Outlook: NA
Key rating drivers
Credit strengths
* Track record of operations: The Group is under bankruptcy
proceedings, which raises doubt over survival of the Group.
Nevertheless, the Group had established pan-India operations in
the mobile services segment with strong market presence in its
four legacy circles namely - Tamil Nadu, Assam, North East and
Jammu & Kashmir. Later on it shut down its wireless operations
and lost its subscribers.
Credit challenges
* Continuing delays in debt servicing: the Group had delayed the
servicing of its debt liabilities last year as per public
information and continues to delay in servicing its debt
obligations.
* Operations closed and under bankruptcy proceedings: Aircel shut
down its wireless operations and filed for bankruptcy in February
2018, which was accepted in March 2018. The proceedings are
underway, and the resolution plan is yet to be finalised. In case
the resolution plan is not finalised or not approved, the company
may get liquidated.
* Legal Concerns: besides the ongoing bankruptcy proceedings,
other legal concerns for the Group remain high given the
uncertainties regarding the developments in the ongoing
investigations into acquisition of the company by Maxis
Communications Berhad (MCB).
Liquidity position
The Group has sizeable debt level and has even shut down its
wireless operations. It is under bankruptcy proceedings and the
debt servicing continues to be under delays. As per publicly
available information there are no cash flows from operations to
service its debt obligations.
Aircel Limited, along with its subsidiaries Aircel Cellular
Limited and Dishnet Wireless Limited, was a telecom service
provider with a pan India presence. Aircel Smart Money Limited,
another wholly owned subsidiary of Aircel Limited, provided
mobile banking services. Aircel Limited was incorporated in
December 1994 as Srinivas Cellcom Limited and started by offering
services in the Tamil Nadu circle in April 1999. Over the years,
it won licences and launched services in all the 22 telecom
circles in the country. Later in 2006, Maxis Communications
Berhad, Malaysia (Maxis), acquired majority stake in the company.
Maxis, through Global Communication Services Holdings Ltd and
Deccan Digital Networks Private Limited, effectively has
approximately 73.99% equity interest in Aircel Limited. The
balance equity is held by the Sindya Securities & Investments
Private Limited. Maxis also has a substantial shareholding in
Maxis Berhad, the leading telecommunication operator in Malaysia.
ASHAPURA INTIMATES: CARE Migrates C Rating to Not Cooperating
-------------------------------------------------------------
CARE Ratings has migrated the rating on bank facility of Ashapura
Intimates Fashion Limited (AIFL) to Issuer Not Cooperating
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 72.50 CARE C; Issuer Not Cooperating;
Facilities Based on Best Available
Information
CARE has been seeking information from AIFL to monitor the
rating(s) vide e-mail communications dated November 21 2018,
December 5, 2018, December 7, 2018, December 11, 2018 and
numerous phone calls. However, despite CARE's repeated requests,
the company has not provided the requisite information for
monitoring the ratings. In line with the extant SEBI guidelines,
CARE has reviewed the rating on the basis of the best available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating. The rating on AIFL's bank facilities
will now be denoted as CARE C; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The rating assigned to the bank facilities of Ashapura Intimates
Fashion Limited (AIFL) considers delays in debt servicing of
newly availed working capital facilities from other lender (not
rated by CARE).
The rating action also considers the significant deterioration in
the financial performance and liquidity position of AIFL in
quarter and half year ended September 2018 (H1FY19).
CARE also notes the qualified opinion of auditors in H1FY19
limited review report regarding the uncertainty of the company
being a going concern and the slow realization of its debtors.
Other rating challenges include continuing sharp decline in the
share price of the company and leveraging of equity stake by the
promoter by way of pledge of equity stake and invocation of
pledge by some of the financiers with whom promoters pledged
shares. Other rating weaknesses are stretched working capital
cycle coupled with high utilization of working capital limits;
inherent industry risk marked by increasing competition and
vulnerability to changes in fashion trends.
Detailed description of the key rating drivers
At the time of last rating on November 23 2018, the following
were the rating strengths and weaknesses:
Key Rating Weaknesses
Deterioration in the liquidity position: AIFL's liquidity
position has deteriorated significantly in recent time with slow
recovery of its debtors. The borrowings have also increased on
account of the newly availed working capital facilities in recent
months for store expansion. The working capital limits also have
been fully utilized and hence provides no liquidity cushion.
Weakening in credit profile due to delay in deleveraging: During
FY18 (refers to the period April 01, 2017- March 31, 2018), the
company had earned significant extraordinary income of INR40.69
crore by sales of treasury stock held by AIFL and the management
had proposed to prepay their entire long term loans by the end of
FY18. Further the company had also planned to reduce their
working capital debt in a phased manner. Delay in the above plan
had weakened the credit profile of the company significantly.
Working capital intensive nature of operations: The operations
are highly working capital intensive due to high debtor and
inventory holding. The working capital cycle has further
deteriorated to 236 days in FY18 as compared to 164 days in FY17.
The debtors have significantly increased from INR141 crore as on
March 31, 2018 to INR247 crore as on September, 30 2018.
Inherent industry risk marked by increasing competition: The
intimate garment industry in India is characterized by a high
degree of fragmentation with majority of the market controlled by
the unbranded and unorganized regional players and the balance by
a few large organized and branded players. A major share of the
lingerie market is held by the mid-market and economy segments,
in terms of both value and volume. The super-premium and premium
segments are relatively smaller, but fast-growing segments. In
the present scenario, the premium and super premium segments of
the lingerie industry are advancing following a consumer shift
from economy and mid-market segment to the premium segment.
Vulnerability to changes in fashion trends: The branded lounge
wear/ night wear segment is driven by fashion trends and its
target segment's aspirations. Therefore, their association with
brands may change. Thus, manufacturers need to constantly
innovate and adapt to the changing preferences of the target
segment. AIFL, with its team of in-house designers who work on
the upcoming season's collections, is expected to have the
ability to adapt to the changing market trends.
Key Rating Strengths
Established brand position: Over the years of its presence, AIFL
has been able to successfully establish various brands viz.
Valentine, N-Line, Night & Day, Valentine Sports, Valentine
Secret Skin and Valentine Pink brands; targeted for mid-income
group segment. AIFL has a strong distribution network with one
hundred and fifteen distributors, ten carrying and forwarding
agents and about ten thousand point of sales. AIFL also has a
diverse product portfolio catering to different segments, thereby
diversifying its revenue stream.
Analytical approach: Standalone including the merged subsidiary
Momai Apparels Limited
Incorporated in 2006, Ashapura Intimates Fashion Limited is
engaged in the business of designing, branding, marketing and
retailing of intimate garments under established brands (viz.
Valentine, N-Line, Night & Day, Valentine Sports etc) and
undertakes sales through organized retail chains and own outlets.
All its products are being manufactured by its subsidiary, Momai
Apparels Limited at its manufacturing facility in Vapi, Gujarat.
However MAL has been merged with the company with appointed date
of April 1, 2016.
CH.GOWRI SHANKAR: Ind-Ra Moves BB+ LT Rating to Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Ch.Gowri Shankar
Infra Build (India) Private Limited's Long-Term Issuer Rating to
the non-cooperating category. The issuer did not participate in
the rating exercise despite continuous requests and follow-ups by
the agency. Therefore, investors and other users are advised to
take appropriate caution while using these ratings. The rating
will now appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR80 mil. Fund-based facilities migrated to non-cooperating
category with IND BB+ (ISSUER NOT COOPERATING) rating; and
-- INR70 mil. Non-fund-based facilities migrated to non-
cooperating category with IND A4+ (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
January 15, 2018. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Established in 1986 as a proprietorship firm by Mr. Gowri
Shankar, Ch.Gowri Shankar Infra Build (India) is a special class
civil contractor and undertakes civil contract works for
buildings, warehouses, drainage systems and irrigation projects.
C.P. SPONGE: CARE Lowers Rating on INR20cr LT Loan to D
--------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
C.P. Sponge Iron Private Limited, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 20.00 CARE D; Issuer not cooperating;
Facilities Revised from CARE B+; Stable
based on best available
information
CARE has been seeking information from C.P. Sponge Iron Private
Limited to monitor the rating vide letters/e-mails communications
dated Oct. 9, 2018, Nov. 11, 2018, Nov. 19, 2018, Nov. 26, 2018
and numerous phone calls. However, despite CARE's repeated
requests, the entity has not provided the requisite information
for monitoring the rating. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the
publicly available information which however, in CARE's opinion
is not sufficient to arrive at fair rating. The rating on C.P.
Sponge Iron Private Limited's bank facilities will now be denoted
as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating. The long term rating assigned to the bank
facilities of C.P. Sponge Iron Private Limited is mainly on
account of on-going delays in debt servicing. Going forward, the
ability of the company to regularize the debt servicing
obligations and timely repayment of debt will be the key rating
sensitivities.
Detailed description of the key rating drivers
Ongoing delays in debt servicing: As on December 24, 2018, there
are on-going delays in the account. The banker has confirmed that
there is continuous overdrawal in the cash credit account for
more than 30 days.
C.P. Sponge Iron Private Limited (CPSIPL) incorporated in the
year 2002, was promoted by Chawla family belonging to West
Bengal. The company commenced operation since July, 2008. CPSIPL
is engaged in the manufacturing of sponge iron at its plant
located at Durgapur, West Bengal with a current installed
capacity of 60,000 metric tonne per annum (MTPA). All the three
directors look after the day to day activities of the business
along with a team of experienced professionals who are having
long experience in similar line of business.
Liquidity
The liquidity position of the company remained moderate marked by
current ratio of 1.13x and quick ratio of 0.79x as on March 31,
2017. The cash and bank balance amounting to INR1.51 crore
remained outstanding as on March 31, 2017. The Gross cash
accruals also remained adequate at INR1.54 crore as on March 31,
2017.
DEV'S CHEM: Ind-Ra Migrates BB- Issuer Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Dev's Chem Tec
Private Limited's Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise,
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
now appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR20 mil. Fund-based working capital limits migrated to non-
cooperating category with IND BB- (ISSUER NOT COOPERATING) /
INDA4+ (ISSUER NOT COOPERATING) rating;
-- INR40 mil. Non-fund-based working capital limit migrated to
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating; and
-- INR120 mil. Proposed fund-based working capital limit
migrated to non-cooperating category with Provisional
IND BB- (ISSUER NOT COOPERATING)/Provisional IND A4+
(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed
December 28, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 2015 in Hyderabad (Telangana), Dev's Chem Tec is
engaged in the trading of basic raw materials and intermediaries
for the pharmaceutical industry.
DEVANSHI CONSTRUCTION: CARE Reaffirms D Rating on INR6.78cr Loan
----------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Devanshi Construction (DEVANSHI), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 6.78 CARE D Reaffirmed and removed
Facilities from Issuer Not Cooperating
In the absence of minimum information required for the purpose of
rating, CARE was unable to express an opinion on the rating of
DEVANSHI and in line with the extant SEBI guidelines, CARE
revised the rating of bank facilities of the firm to 'CARE D;
ISSUER NOT COOPERATING'. However, the firm has now submitted the
requisite information to CARE. CARE has carried out a full review
of the rating and the rating stand at 'CARE D'.
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of DEVANSHI continue
to remain constrained due to on-going delays in debt servicing
owing to weak liquidity position.
Detailed description of the key rating drivers
Key Rating Weaknesses
Delays in Debt servicing: There were delays in debt servicing
obligations for more than 30 days due to stretched liquidity
position on account of lower than envisaged customer booking
advances received during current financial year. DEVANSHI
reported revenue of INR7.15 crore from sold units and of INR6.00
crore as booking advances from the project, till December 25,
2018.
Surat-based (Gujarat) based, DEVANSHI was established as a
partnership firm in 2014 by four partners. DEVANSHI has completed
a commercial project of shops named 'Madhuram Arcade' which
comprises of 304 shops involving a total saleable area of
2,46,516 Square feet area at Dindoli- Surat. The project got
completed in June, 2017.
FEPL ENGINEERING: CARE Moves 'D' Rating to Not Cooperating
----------------------------------------------------------
CARE Ratings has migrated the rating on bank facility of FEPL
Engineering Private Limited (FEPL) to Issuer Not Cooperating
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 2.00 CARE D; Issuer not cooperating;
Facilities Based on best available
information
Long-term/Short- 3.50 CARE D; Issuer not cooperating;
term Bank Based on best available
Facilities information
CARE has been seeking information from FEPL to monitor the
ratings vide e-mail communications/letters dated December 18,
2018, December 19, 2018, December 21, 2018, December 24, 2018 and
numerous phone calls. However, despite CARE's repeated requests,
the company has not provided the requisite information for
monitoring the ratings. In line with the extant SEBI guidelines,
CARE has reviewed the rating on the basis of the publicly
available information which, however, in CARE's opinion is not
sufficient to arrive at a fair rating. The ratings on FEPL's
bank facilities will now be denoted as CARE D/CARE D; ISSUER NOT
COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings take into account the delay in servicing of its debt
obligations due to weak liquidity position.
Detailed description of the key rating drivers
At the time of last rating on September 4, 2017, the following
were the rating strengths and weaknesses (updated for the
information available from Registrar of Companies):
Key Rating Weaknesses
Delays in debt servicing: As per the interaction with the banker,
FEPL has been delaying its payment of debt obligations, wherein
there have been continuous overdrawals exceeding 30 days in the
bank overdraft over April 2017-June 2017.
Incorporated in 2004, FEPL is engaged in SI (System Integration)
of SPV (Solar Photovoltaic)-based power systems, manufacturing of
oil mist systems viz. oil mist lubrication systems, blaze flow
oil purification systems, etc. coupled with trading of solar
products, chemicals and providing consultancy services of SPV-
based products. It has executed SI of SPVbased power systems
aggregating 800 KWp in Kuwait, for a renowned overseas company
named Plant Engineering Co. (PEC) which acts as a dealer of
petroleum pumps, flow meters, tank truck equipment, industrial
hoses, valves and oil field equipment. FEPL caters to a reputed
set of oil & petroleum players in India. for its various oil mist
systems. Moreover, it has provided consultancy services for over
19.5 KWp of various SPV-based products viz. solar lighting, grid-
tie solar, rooftop solar, etc.
GINNI HOLDINGS: ICRA Maintains 'D' Rating in Not Cooperating
------------------------------------------------------------
ICRA said the ratings for the INR25.00 crore bank facilities of
Ginni Holdings continue to remain in the 'Issuer Not Cooperating'
category. The rating is denoted as "[ICRA]D/[ICRA]D ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term-Fund 22.00 [ICRA]D; ISSUER NOT
Based/CC COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
Short Term-Non 1.00 [ICRA]D; ISSUER NOT
Fund Based COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
Long Term/Short 2.00 [ICRA]D/[ICRA]D; ISSUER NOT
Term-Unallocated COOPERATING*; Rating continues
to remain in the 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA,
the entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the
rating may not adequately reflect the credit risk profile of the
entity.
Ginni Holdings is a manufacturer, wholesaler and trader of gold,
diamonds and silver ornaments/jewellery. Ginni Holdings is a
partnership firm established in the year 2006 and promoted by Mr.
Pradeep Kumar Goel and his family. Ginni Holdings's customers
primarily consist of wholesalers and retailers based in New Delhi
area.
GOEL EXIM: ICRA Maintains D Rating in Not Cooperating Category
--------------------------------------------------------------
ICRA said the rating for the INR50.00 crore bank facilities of
Goel Exim India Private Limited (GEIPL) continues to remain in
the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]D ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 50.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund Based/CC Rating continues to remain in
the 'Issuer Not Cooperating'
category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA,
the entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the
rating may not adequately reflect the credit risk profile of the
entity.
GEIPL is a manufacturer, wholesaler and trader of gold, diamonds
and silver ornaments/jewellery. The company was incorporated in
the year 2004. The customers of GEIPL are primarily wholesalers
and retailers based in New Delhi area. The company is part of the
Delhi Based Group engaged in the manufacturing, wholesale and
retail sales of gold and diamond. GEIPL had acquired two
partnership firms, namely, Shree Ganpati Impex and Bhavya Gold
with effect from 15 March 2010. The partners of both the firms
are shareholders of the company
GOVARDANAGIRI AGRO: Ind-Ra Lowers Long Term Issuer Rating to 'D'
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Govardanagiri
Agro Industries Private Limited's (GAIPL) Long-Term Issuer Rating
to 'IND D' from 'IND B+'. The Outlook was Stable.
The instrument-wise rating actions are:
-- INR123.6 mil. (reduced from INR140.0 mil.) Term loans (long-
term)* due on January 2025 downgraded and assigned with IND D
rating; and
-- INR100.0 mil. Fund-based facilities (long-term/short-term)*
downgraded and assigned with IND D rating.
*The assignment of final ratings is based on the receipt of
sanction letters by Ind-Ra
KEY RATING DRIVERS
The downgrades reflect delays in debt servicing by GAIPL during
the six months ended November 2018, owing to a stressed liquidity
position.
RATING SENSITIVITIES
Positive: Timely debt servicing for at least last three
consecutive months could result in a positive rating action.
COMPANY PROFILE
GAIPL was established in February 2015 to set-up a cotton oil
extraction unit in Telangana. The site will engage in cottonseed
delinting, dehulling and oil extraction processes to provide
oiled cake, hulls, oil and lint. The promoters of the company are
Mr. D Raghavaiah and Mr. Ronda Suresh.
GUJARAT AMBUJA: Faces Insolvency Petition Over Unpaid Dues
----------------------------------------------------------
The Economic Times reports that Gujarat Ambuja Exports, a
manufacturer of starch derivatives, has been dragged to the
bankruptcy courts by one of its suppliers for recovery of
payments due to it.
ET relates that the case has been being filed by Delta Global
Resources, which supplied coal to Gujarat Ambuja, said a company
executive.
"We supplied coal against which we haven't received the payments.
The company is not releasing our payments which fell due since
August 2017," said Piyush Goel, director at Delta Global
Resources confirming the NCLT application, ET relays.
According to the report, the sum of non-repayments including
interest cost is estimated to be INR1.25 crore but it is the
Insolvency Bankruptcy Code that empowers even operational
creditors to drag a defaulting company to NCLT.
"The company has money but is not repaying due to some other
matter. It has reached out to the operational creditor for a
settlement. This is the power of IBC," the report quotes a senior
executive involved in the matter as saying.
But Gujarat Ambuja Exports said that its financial strength is
very sound and the dispute is more civil in nature.
"We would like to state that dispute for contracts which is civil
in nature and as the matter is sub-judice we are unable to
comment further on the matter except the fact that company is
sound with very good networth and credential in the market," said
Sanjay Maniar, GM (Corporate) at Gujarat Ambuja Exports, ET
relays.
"We are going to object the matter. It is further submitted we
have already filed civil suit against the said party," he said in
an email reply to ET.
Nipun Singhvi and Vishal Dave, two Ahmedabad-based advocates are
representing Delta Global Resources, which supplied imported
coals to the company in August, 2017, the report notes.
HANSRAJ MEMORIAL: CARE Lowers Rating on INR19.90cr Loan to D
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Hansraj Memorial Educational Society, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 19.90 CARE D Revised from CARE B;
Facilities Stable
Short-term Bank
Facilities 13.00 CARE D Revised from CARE A4
Detailed Rationale & Key Rating Drivers
The revision in the ratings assigned to the bank facilities of
Hansraj Memorial Educational Society takes into account ongoing
delays in the servicing of the debt obligation.
Detailed description of the key rating drivers
Ongoing delays in debt servicing: There are ongoing delays in the
servicing of the debt obligation for the term loan and the
overdraft facilities availed by the society.
Hansraj Memorial Educational Society (HMES) is a part of
Jalandhar (Punjab) based Airwings Services group which is engaged
in the business of tours & travels and HR management. HMES was
founded by Late Mr. Hans Raj Bhatia under the Societies
Registration Act of India on February 1, 2000. Mr. Ajay Bhatia is
the President of the society and his brother, Mr. Deepak Bhatia,
is the General Secretary. HMES is currently operating three
schools in the Jalandhar city- Cambridge International school for
girls (CISFG; established in 2005), Cambridge International
School Co-ed (CISC; established in 2008) and Cambridge
International (CISFG; established in 2005), Cambridge
International School Co-ed (CISC; established in 2008) and
Cambridge International Foundation School (CIFS; established in
2012) and is setting up a new school in Mohali (Punjab). The
schools are affiliated to CBSE (Central Board of Secondary
Education) and are ISO-9001:2008 accredited.
JEYENKAY PETROGELS: ICRA Hikes Rating on INR11cr Loan from D
------------------------------------------------------------
ICRA has upgraded the rating of bank facilities of Jeyenkay
Petrogels Private Limited to [ICRA]C+/[ICRA]A4.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based limit 3.45 [ICRA]C+; Upgraded from
[ICRA]D
Non-Fund based 11.00 [ICRA]A4; Upgraded from
limit [ICRA]D
Unallocated limit 3.55 [ICRA]C+/[ICRA]A4; Upgraded
from [ICRA]D/[ICRA]D
Rationale
The upgrade in ratings takes into consideration the
regularisation of debt servicing by Jeyenkay Petrogels Private
Limited in the past three months due to an improvement in its
liquidity position. Moreover, the ratings draw comfort from the
established experience of the promoter in the petrogel and
speciality oil industry.
However, the ratings continue to factor in the company's
stretched financial profile characterised by thin profitability,
weak debt protection metrics and leveraged capital structure. The
ratings are further constrained by JPPL's presence in the highly
fragmented petrogel and speciality oil industry, characterised by
intense competition, which limits its pricing flexibility. The
prices of its key raw materials are derived from the volatile
crude prices, which expose JPPL's margins to raw material price
volatility. Furthermore, with more than 30% of the raw material
requirement met through imports in FY2018, the company's profit
margins remain vulnerable to volatility in foreign currency
exchange rates.
Outlook: Not applicable
Key rating drivers
Credit strengths
Regularisation of debt servicing in the last three months: The
debt servicing has been regular since September 2018, backed by
an improvement in the company's liquidity position, because of
timely receipt of receivables.
Extensive experience of the promoter in the manufacture of
petrogels and speciality products: JPPL's promoter, Mr. Nilesh
Patel has been associated with the petrogel and speciality oil
industry for over two decades. Over the years, the company has
established strong ties with its customers, entailing repeat
orders.
Credit challenges Stretched financial risk profile characterised
by thin profitability, weak debt protection metrics and leveraged
capital structure: Owing to a low net-worth base, the company
funds its working capital requirements mainly by availing
external borrowings and through its creditors, resulting in a
TOL/TNW1 of 16.19 times as on March 31, 2018. Furthermore, JPPL's
profitability remained thin, leading to weak debt protection
metrics as indicated by NCA/Total Debt of 1% and Total
Debt/OPBDITA of 14.43 times as on March 31, 2018.
Modest scale of operations: The company's operating scale stood
modest with the operating income(OI) remaining stagnant at
around INR59 crore in both FY2017 and FY2018.
Intensely competitive nature of the industry and limited value-
addition in the nature of the business, result in thin
profitability: The company's presence in the highly fragmented
petrogel and speciality oil industry, which is characterised by
intense competition, limits its pricing flexibility and thereby
restricts its ability to effectively pass on any increase in raw
material prices to its customers.
Profitability susceptible to movements in the prices of raw
materials, which are crude oil derivatives: The prices of the
company's key raw materials comprising base oils, crystal wax,
slack wax and paraffin wax are derived from the highly volatile
crude prices. Since JPPL procures inventory in anticipation of
the demand, its margins remain vulnerable to raw material price
volatility.
Exposure to currency fluctuation risks, given its dependence on
imports: As the dependence on imports remained at 37% and 34% in
FY2017 and FY2018 respectively, JPPL's profits remain susceptible
to adverse fluctuations in foreign exchange rates, in absence of
any hedging mechanism. The company recorded a net forex gain of
INR0.01 crore in FY2017 and a net forex loss of INR0.02 crore in
FY2018.
Liquidity position: The company reported negative free cash flows
of INR1.11 crore as on March 31, 2018 and it has a free cash
balance of INR0.01 crore as on March 31, 2018. The funding
requirement has been met through infusion of unsecured loans by
the promoters. It has no repayment obligations as on March 31,
2018. There is no plan of any major capacity expansion in the
near to medium term. JPPL had undrawn working capital limits of
INR0.56 crore as on March 31, 2018. However, it has encumbered
cash balance of INR1.34 crore in the form of bank fixed deposits
as margin money for its Letter of Credit facility.
Established in 1996 as a partnership firm, Jeyenkay Petrogels
Private Limited manufactures petrogels and speciality grade oils.
The entity was converted into a private limited company in August
2011. JPPL's products are used as lubricating oils, rust
preventive oils, industrial oils, shock absorbers in
pharmaceuticals, cosmetics, automotives, telecom, defence,
perfumery, plastics, refrigeration, foundry, switch gears,
turbines, etc. The principal raw materials consist of base oils,
crystal wax, slack wax, paraffin wax, etc., which are primarily
imported from Singapore, Netherlands, and the UAE. JPPL's
corporate office is in Mumbai and its manufacturing facility in
Silvassa (Union Territory of Dadra and Nagar Haveli).
JPPL recorded a profit after tax of INR0.02 crore on an OI of
INR59.58 crore for the year ending on March 31, 2018.
MADHUCON PROJECTS: ICRA Moves D Rating to Not Cooperating
---------------------------------------------------------
ICRA has moved the long-term and short-term ratings for the bank
facilities of Madhucon Projects Limited (MPL) to the 'Issuer Not
Cooperating' category. The rating is now denoted as "[ICRA]D
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based 477.05 [ICRA]D ISSUER NOT COOPERATING;
Facilities Rating moved to the 'Issuer Not
Cooperating' category
Non-fund based 728.20 [ICRA]D ISSUER NOT COOPERATING;
Rating moved to the 'Issuer Not
Cooperating' category
Unallocated 194.75 [ICRA]D ISSUER NOT COOPERATING;
Limits Rating moved to the 'Issuer Not
Cooperating' category
The rating is based on limited information on the entity's
performance since the time it was last rated in June 2017. The
lenders, investors and other market participants are thus advised
to exercise appropriate caution while using this rating as the
rating does not adequately reflect the credit risk profile of the
entity. The entity's credit profile may have changed since the
time it was last reviewed by ICRA; however, in the absence of
requisite information, ICRA is unable to take a definitive rating
action.
As part of its process and in accordance with its rating
agreement with MPL, ICRA has been trying to seek information from
the entity so as to monitor its performance, but despite repeated
requests by ICRA, the entity's management has remained non-
cooperative. In the absence of requisite information, and in line
with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated
November 1, 2016, ICRA's Rating Committee has taken a rating view
based on the best available information.
Originally incorporated in 1990 as Madhu Continental
Constructions Private Limited and subsequently converted into a
listed public limited company in March 1995, Madhucon Projects
Limited (MPL) is primarily engaged in the road construction and
irrigation projects business. MPL was promoted by Mr. N Seethaiah
and Mr. N Krishnaiah. It is currently engaged predominantly in
construction of roads and irrigation projects.
MALWA AGRO: Ind-Ra Lowers Long Term Issuer Rating to 'BB+'
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Malwa Agro
Foods Private Limited's (MAFPL) Long-Term Issuer Rating to 'IND
BB+' from 'IND BBB-'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR7.7 mil. (reduced from INR9.25 mil.) Term loan due on
June 2023 downgraded with IND BB+/Stable rating;
-- INR124 mil. (reduced from INR133 mil.) Fund-based limits
downgraded with IND BB+/Stable rating; and
-- The IND BB+ rating on the INR0.60 mil. Non-fund-based limits
are withdrawn (repaid in full).
KEY RATING DRIVERS
The downgrade reflects a decline in MAFPL's revenue, leading to
deterioration in its net leverage in FY18. Revenue fell to
INR1,355 million in FY18 (FY17: INR1,558 million), driven by a
decrease in sales realization. The scale of operations is
moderate. Net leverage (net debt/operating EBITDA) was 4.3x in
FY18 (FY17: 3.9x), breaching Ind-Ra's negative rating guideline
of 4.0x owing to the decline in absolute EBITDA. MAFPL's return
on capital employed was 10% in FY18 (FY17: 11%) and EBITDA margin
was modest at 2.2% (2.1%). Interest coverage (operating
EBITDA/gross interest expenses) was 2.5x in FY18 (FY17: 2.4x).
The ratings also factor in MAFPL's modest liquidity position as
indicated by 78.16% average maximum working capital utilization
for the 12 months ended November 2018. Its cash flow from
operations improved to INR16 million in FY18 (FY17: INR6 million)
owing to better working capital management. At FYE18, it had an
available cash balance of INR3 million (FYE17: INR2 million).
However, the ratings continue to benefit from MAFPL's promoter's
experience of more than two decades in the wheat processing
business.
RATING SENSITIVITIES
Positive: A substantial increase in the scale of operations,
leading to the net leverage reducing below 3.0x on a sustained
basis could be positive for the ratings.
Negative: The net leverage increasing above 4.5x on a sustained
basis could be negative for the ratings.
COMPANY PROFILE
Incorporated in 2006, Indore-based MAFPL is engaged in the
processing and milling of wheat-based products. The company has
an installed capacity of 1,09,000mtpa. It operates from three
manufacturing units, of which two units are located in Indore and
one in Jabalpur. MAFPL markets all of its products under the
brand Heera Motee and Golden Kiran.
MDA MINERAL: ICRA Maintains C+ Rating in Not Cooperating
--------------------------------------------------------
ICRA said the ratings for the INR13.50-crore bank facilities of
MDA Mineral Dhatu (AP) private Limited continue to remain in the
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]C+/[iCRA]A4 ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term 5.00 [ICRA]C+ ISSUER NOT
Cash Credit COOPERATING; Rating continue
to remain in 'Issuer Not
Cooperating' category
Long Term- 6.00 [ICRA]C+ ISSUER NOT
Term Loan COOPERATING; Rating continue
to remain in 'Issuer Not
Cooperating' category
Long Term-Non- 2.50 [ICRA]C+ ISSUER NOT
Fund Based COOPERATING; Rating continue
to remain in 'Issuer Not
Cooperating' category
Short Term (2.50) [ICRA]A4 ISSUER NOT
Interchangeable COOPERATING; Rating continue
to remain in 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA,
the entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the
rating may not adequately reflect the credit risk profile of the
entity.
MDA Mineral Dhatu (AP) Pvt. Ltd. (MDA) was incorporated in 2010
by Mr. Vidhan Mittal, Mr. Vijay Kumar Mittal and Mr.Chagan Lal
Mittal as directors. The factory of the company is located at
owened premises at Bobbili, Vijayanagaram, Andhra Pradesh, spread
over 4.0 acres an build up area of ~4 acres. MDA Mineral Dhatu
(AP) Pvt. Ltd (MDA) is a 6MVA ferro alloy unit was incorporated
in the year 2011 after its de-merger from MDA Projects India Pvt
Limited. As informed by the management, the original company- MDA
Projects India Pvt Ltd has been dissolved after the incorporation
of MDA Mineral Dhatu (AP) Private Limited. The company proposed
to commence the commercial production in June 2012, however, the
trail production commenced on 29th June 2013.
MISTRY ENTERPRISES: ICRA Maintains D Rating in Not Cooperating
--------------------------------------------------------------
ICRA said the rating of INR27.50 crore bank facilities of Mistry
Enterprises Limited (MEL) continues to remain in the 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER
NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 10.00 [ICRA]D; ISSUER NOT COOPERATING;
Rating continues to remain in
the 'Issuer Not Cooperating'
category
Overdraft 17.50 [ICRA]D; ISSUER NOT COOPERATING;
Rating continues to remain in
the 'Issuer Not Cooperating'
category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA,
the entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this
rating as the rating may not adequately reflect the credit risk
profile of the entity.
Incorporated in 2007, Mistry Enterprises Limited (MEL) is engaged
in heavy excavation and earthwork. The promoters are also
associated with other companies engaged in film exhibition &
tower leasing (Meghraj Cinema, Kurla Exhibitors), textile trading
(Millennium Clothing Pvt Ltd) and site excavation & mining
activities (Mistry Construction Company Private Limited, MCCPL)
and MEL has extended large amount of advances to many of these
group companies.
MOMAI APPARELS: CARE Moves CARE C(SO) Rating to Not Cooperating
---------------------------------------------------------------
CARE Ratings has migrated the rating on bank facility of Momai
Apparels Limited (MIL) to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 32.50 CARE C (SO); Issuer Not
Facilities Cooperating; Based on Best
Available Information
CARE has been seeking information from MIL to monitor the
rating(s) vide e-mail communications dated November 21 2018,
December 5, 2018, December 7, 2018, December 11, 2018, and
numerous phone calls. However, despite CARE's repeated requests,
the company has not provided the requisite information for
monitoring the ratings. In line with the extant SEBI guidelines,
CARE has reviewed the rating on the basis of the best available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating. The rating on AIFL's bank facilities
will now be denoted as CARE C (SO); ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The rating assigned to the bank facilities of Momai Apparels
Limited (MAL) factors in the credit enhancement in the form of
unconditional and irrevocable corporate guarantee extended by
Ashapura Intimate Fashions Limited (AIFL) to the lenders of MAL
for repayment of the obligation on the bank facilities. In the
event of default by MAL, the guarantor (AIFL) will repay the dues
to the lender on demand.
The rating assigned to the bank facilities of Ashapura Intimates
Fashion Limited (AIFL) considers delays in debt servicing of
newly availed working capital facilities from other lender (not
rated by CARE). The rating action also considers the significant
deterioration in the financial performance and liquidity position
of AIFL in quarter and half year ended September 2018 (H1FY19).
CARE also notes the qualified opinion of auditors in H1FY19
limited review report regarding the uncertainty of the company
being a going concern and the slow realization of its debtors.
Other rating challenges include continuing sharp decline in the
share price of the company and leveraging of equity stake by the
promoter by way of pledge of equity stake and invocation of
pledge by some of the financiers with whom promoters pledged
shares. Other rating weaknesses are stretched working capital
cycle coupled with high utilization of working capital limits;
inherent industry risk marked by increasing competition and
vulnerability to changes in fashion trends.
Detailed description of the key rating drivers
At the time of last rating on November 23 2018, the following
were the rating strengths and weaknesses:
Key Rating Weaknesses
Deterioration in the liquidity position: AIFL's liquidity
position has deteriorated significantly in recent time with slow
recovery of its debtors. The borrowings have also increased on
account of the newly availed working capital facilities in recent
months for store expansion. The working capital limits also have
been fully utilized and hence provides no liquidity cushion.
Weakening in credit profile due to delay in deleveraging: During
FY18 (refers to the period April 1, 2017-March 31, 2018), the
company had earned significant extraordinary income of INR40.69
crore by sales of treasury stock held by AIFL and the management
had proposed to prepay their entire long term loans by the end of
FY18. Further the company had also planned to reduce their
working capital debt in a phased manner. Delay in the above plan
had weakened the credit profile of the company significantly.
Working capital intensive nature of operations: The operations
are highly working capital intensive due to high debtor and
inventory holding. The working capital cycle has further
deteriorated to 236 days in FY18 as compared to 164 days in FY17.
The debtors have significantly increased from INR141 crore as on
March 31, 2018 to INR247 crore as on September, 30 2018.
Inherent industry risk marked by increasing competition: The
intimate garment industry in India is characterized by a high
degree of fragmentation with majority of the market controlled by
the unbranded and unorganized regional players and the balance by
a few large organized and branded players. A major share of the
lingerie market is held by the mid-market and economy segments,
in terms of both value and volume. The super-premium and premium
segments are relatively smaller, but fast-growing segments. In
the present scenario, the premium and super premium segments of
the lingerie industry are advancing following a consumer shift
from economy and mid-market segment to the premium segment.
Vulnerability to changes in fashion trends: The branded lounge
wear/ night wear segment is driven by fashion trends and its
target segment's aspirations. Therefore, their association with
brands may change. Thus, manufacturers need to constantly
innovate and adapt to the changing preferences of the target
segment. AIFL, with its team of in-house designers who work on
the upcoming season's collections, is expected to have the
ability to adapt to the changing market trends.
Key Rating Strengths
Established brand position: Over the years of its presence, AIFL
has been able to successfully establish various brands viz.
Valentine, N-Line, Night & Day, Valentine Sports, Valentine
Secret Skin and Valentine Pink brands; targeted for mid-income
group segment. AIFL has a strong distribution network with one
hundred and fifteen distributors, ten carrying and forwarding
agents and about ten thousand point of sales. AIFL also has a
diverse product portfolio catering to different segments, thereby
diversifying its revenue stream.
MAL [erstwhile Momai Apparels Private Limited (MAPL)] is engaged
in the business of manufacturing lounge wear, comfort wear and
intimate wear primarily for AIFL. MAL belongs to Ashapura group
which has been promoted by Mr Harshad Thakkar and his family.
About the Company (Guarantor)
Incorporated in 2006, Ashapura Intimates Fashion Limited is
engaged in the business of designing, branding, marketing and
retailing of intimate garments under established brands (viz.
Valentine, N-Line, Night & Day, Valentine Sports etc) and
undertakes sales through organized retail chains and own outlets.
All its products are being manufactured by its subsidiary, Momai
Apparels Ltd at its manufacturing facility in Vapi, Gujarat.
However MAL has been merged with the company with appointed date
of April 1, 2016.
NATHELLA SAMPATH: CARE Maintains D Rating in Not Cooperating
------------------------------------------------------------
CARE had, vide its press release dated August 2, 2017 and
October 25, 2017, placed the rating of Nathella Sampath Jewelry
Private Limited (NSJPL) under the 'issuer non-cooperating'
category as NSJPL had failed to provide information for
monitoring of the rating. NSJPL continues to be non-cooperative
despite repeated requests for submission of information through
phone calls and a letter dated December 10, 2018. In line with
the extant SEBI guidelines, CARE has reviewed the rating on the
basis of the best available information which however, in CARE's
opinion is not sufficient to arrive at a fair rating.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term/Short- 355.00 CARE D/CARE D; ISSUER NOT
term Bank COOPERATING
Facilities
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers
CARE has noted from publicly available information on closure of
NSJPL's retail showrooms and failure to meet commitments under
the Gold savings's schemes. Media reports also indicate that the
company has filed for voluntary insolvency in April 2018 to
National Company Law Tribunal (NCLT). Further, CARE's interaction
with bankers indicates delays in debt servicing by the company.
Analytical approach: Standalone
NSJPL, a Chennai-based company was incorporated on April 3, 2007
by the amalgamation of three partnership firms namely, Nathella
Sampath Jewellerie, NSC Jewellers and NSC & Co. The group was
promoted by Sriman Nathella Sampathu Chetty Garu in 1928 and the
retail operations commenced in 1998. The company is primarily
engaged in trading of gold jewellery and gold bullion.
PANYAM CEMENTS: CARE Moves D Rating to Not Cooperating Category
---------------------------------------------------------------
CARE Ratings has migrated the rating on bank facility of Panyam
Cements and Mineral Industries Limited (PCMIL) to Issuer Not
Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 30.00 CARE D; Issuer not cooperating;
Facilities Based on best available
information
Short term Bank 9.32 CARE D; Issuer not cooperating;
Facilities Based on best available
information
Non-Convertible 97.68 CARE D; Issuer not cooperating;
Debentures Based on best available
information
CARE has been seeking information from PCMIL to monitor the
rating(s) vide e-mail communications/letters dated July 18, 2018,
August 3, 2018, October 26, 2018, November 1, 2018, November 9,
2018, November 13, 2018, November 19, 2018 and numerous phone
calls. However, despite CARE's repeated requests, the company has
not provided the requisite information for monitoring the
ratings. In line with the extant SEBI guidelines, CARE has
reviewed the rating on the basis of the best available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating. The rating on Panyam Cements and
Mineral Industries Limited's bank facilities and instruments will
now be denoted as CARE D/CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s). The ratings take into account delays in debt
servicing owing to stretched liquidity position.
Detailed description of the key rating drivers
At the time of last rating on September 29, 2017, the following
were the rating strengths and weaknesses (Updated from the
information available from Stock Exchange)
Key Rating Weaknesses
Continued delays in debt servicing owing to weak liquidity
position: There are continued delays in debt servicing on account
of liquidity constraint. The company continued to incur cash
losses during FY18 which has led to stretched liquidity position
and consequently delays. The same have also been in the audit
report of the company. The operating cycle for the company has
deteriorated further from 37 days in FY17 to 53 days in FY18,
owing to stretched collection period, which declined from 34 days
in FY17 to 54 days in FY18. Further, as on March 31, 2018, the
company had cash and bank balance of INR0.74 crore.
Significant decline in operations: The total operating revenue
(TOI) for the company reduced by 18.86% to INR180.22 crore for
FY18 from INR222.10 crore for FY17. Similarly, PBILDT for FY18
has fallen by 63.70%, reducing from INR31.78 crore in FY17 to
INR11.54 crore in FY18. Along similar lines, the PBT & PAT levels
have also reduced, and the company incurred losses of INR31.44
crore during FY18, as against PBT of INR0.93 crore during FY17 &
a post-tax loss of INR0.32 crore. PBILDT margin also declined
during FY18.
Continued leveraged capital structure with further deterioration:
The capital structure of the company continues to remain
leveraged. The overall gearing ratio deteriorated from 7.93x as
on March 31, 2017 to -9.85x as on March 31, 2018. The networth of
the company has completely eroded as in March 31, 2018.
Significant exposure to group companies: The company's exposure
towards group companies continues to remain high in the form of
equity, advances, Inter Corporate Deposits and also Corporate
Guarantees given for debt availed by group entities. As on March
31, 2018, the aggregate of same was around INR287.88 crore.
Key Rating Strengths
Experienced promoters with long track record of operations in
diversified business: PCMIL belongs to Nandi Group of
Industries, which has presence in diversified businesses such as
cements, dairy, construction, PVC pipes, etc mainly in Andhra
Pradesh. The main promoter, Mr S.P.Y. Reddy (Chairman) has
business experience of more than three decades. The business
operations of the group have benefited from Mr. Reddy's long
established track record in different businesses and the vast
industry network developed over the years.
Industry prospects: The eastern states of India are likely to be
the newer and virgin markets for cement companies and could
contribute to their bottom line in future. In the next 10 years,
India could become the main exporter of clinker and gray cement
to the Middle East, Africa, and other developing nations of the
world. Cement plants near the ports, for instance the plants in
Gujarat and Visakhapatnam, will have an added advantage for
exports and will logistically be well armed to face stiff
competition from cement plants in the interior of the country.
Analytical approach: Standalone
Panyam Cements & Mineral Industries Limited (PCMIL), incorporated
in June 1955, is part of Nandi Group of Industries based out of
Nandyal in Andhra Pradesh. PCMIL is currently engaged in
manufacturing of Ordinary Portland Cement (OPC) 53 grade & 43
grade and Pozzolona Portland cement (PPC) with installed capacity
of 1 million tons per annum (MTPA) at its manufacturing
facilities located at Kurnool District, Andhra Pradesh. PCMIL was
acquired by Nandi Group from its earlier promoters Mr. M. V.
Subba Rao and Associates during September 2004 when it was a sick
company. Over the years, Nandi Group has successfully revived the
company and furthermore, promoters have undertaken large
modernization and expansion projects to increase scale of
operations and reduce operational costs. Since 1978, the Nandi
group has built a diversified presence of businesses such as
cement, dairy, PVC pipes, construction, TMT bars etc.
PARAMOUNT WHEELS: ICRA Lowers Rating on INR13cr Cash Loan to D
--------------------------------------------------------------
ICRA has downgraded the rating of bank facilities of Paramount
Wheels Private Limited (PWPL) to [ICRA]D from [ICRA]B+ (Stable).
The rating continues to be in the 'Issuer Not Cooperating'
category. The rating is now denoted as "[ICRA]D ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based- 13.00 [ICRA]D ISSUER NOT COOPERATING;
Cash Credit downgraded from ICRA]B+
(Stable); rating continues to
be in 'Issuer not cooperating'
category
Fund Based- 2.50 [ICRA]D ISSUER NOT COOPERATING;
Adhoc Limit downgraded from ICRA]B+
(Stable); rating continues to
be in 'Issuer not cooperating'
category
Fund Based- 2.75 [ICRA]D ISSUER NOT COOPERATING;
Drop line OD downgraded from ICRA]B+
(Stable); rating continues to
be in 'Issuer not cooperating'
category
Unallocated 7.25 [ICRA]D ISSUER NOT COOPERATING;
downgraded from ICRA]B+
(Stable); rating continues to
be in 'Issuer not cooperating'
category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA,
the entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
information on the issuers' performance. Accordingly the lenders,
investors and other market participants are advised to exercise
appropriate caution while using this rating as the rating may not
adequately reflect the credit risk profile of the entity.
Rationale
The rating downgrade follows the delays in debt servicing by PWPL
to the lender, as confirmed by them to ICRA.
Paramount Wheels Private Limited (PWPL) is an authorized dealer
for Maruti Suzuki India Limited. The company was incorporated in
2010 and began its operations in March 2011. Currently, the
company has one showroom, one workshop and one body shop in Mira
Road, one showroom and a workshop in Wada, one workshop in
Goregaon and one true value outlet in Dahisar, and one Nexa
showroom coming up.
PRANI AUTO: ICRA Maintains 'D' Rating in Not Cooperating
--------------------------------------------------------
ICRA said the ratings for the INR17.75-crore bank facilities of
Prani Auto Plaza Private Limited continue to remain in the
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]D ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based- 13.00 [ICRA]D; Rating continue to
cash credit remain in 'Issuer Not
Cooperating' category
Fund Based- 4.40 [ICRA]D; Rating continue to
Term Loan remain in 'Issuer Not
Cooperating' category
Unallocated 0.35 [ICRA]D; Rating continue to
remain in 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA,
the entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the
rating may not adequately reflect the credit risk profile of the
entity.
Prani Auto Plaza Private Limited was started as a partnership
firm in 2003 and was subsequently converted to a private limited
company in 2009. The company is the authorized dealer of
passenger vehicles of Tata motors limited (TML) in Anantapur and
Kurnool districts in Andhra Pradesh. The company opened its first
showroom in Ananthapur in 2003, followed by showrooms in Kurnool
in 2007 and Nandyal in 2009. These three showrooms are in the
company's own buildings. Additionally, the company opened
showrooms in Hindupur (2011) and Tadipatri (2012) on a lease
basis. In January 2013, it opened one more showroom in Tirupati
as the existing dealer in the district withdrew from the
dealership.
RAM COIR: Ind-Ra Migrates B+ LT Issuer Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Ram Coir Mills'
Long-Term Issuer Rating to the non-cooperating category. The
issuer did not participate in the rating exercise, despite
continuous requests and follow-ups by the agency. Therefore,
investors and other users are advised to take appropriate caution
while using these ratings. The rating will now appear as 'IND B+
(ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR32 mil. Term loans due on March 2021 migrated to non-
cooperating category with IND B+ (ISSUER NOT COOPERATING)
rating; and
-- INR130 mil. Fund-based working capital limits migrated to
non-cooperating category with IND B+ (ISSUER NOT
COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed
December 27, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 1952 and based out of Kerala, Ram Coir Mills
manufactures vinyl backed coir products, coir mats, jute
products, rubber molded coir products, 100% rubber mats and
polypropylene mats. The firm is SA8000:2008 certified.
RANA SUGARS: ICRA Migrates D Rating to Not Cooperating Category
---------------------------------------------------------------
ICRA has moved the long term and short term ratings for the bank
facilities of Rana Sugars Limited (RSL) to the 'Issuer Not
Cooperating' category. The rating is now denoted as "[ICRA]D
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 502.20 [ICRA]D ISSUER NOT COOPERATING;
Fund Based- Rating moved to the 'Issuer Not
Cash Credit Cooperating' category
Long Term- 104.87 [ICRA]D ISSUER NOT COOPERATING;
Fund Based- Rating moved to the 'Issuer Not
Term Loans Cooperating' category
Long Term 81.13 [ICRA]D ISSUER NOT COOPERATING;
Unallocated Rating moved to the 'Issuer Not
Cooperating' category
Short Term-Non 31.80 [ICRA]D ISSUER NOT COOPERATING;
Fund Based-BGs Rating moved to the 'Issuer Not
and LCs Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA,
the entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
information on the issuers' performance. Accordingly the lenders,
investors and other market participants are advised to exercise
appropriate caution while using this rating as the rating may not
adequately reflect the credit risk profile of the entity.
RSL is engaged in the business of manufacturing sugar and
undertaking the allied businesses of cogeneration and distillery.
Incorporated in July 1991, RSL was promoted by Rana Gurjeet Singh
and Rana Ranjit Singh as a joint venture with Punjab Agro
Industrial Corporation Ltd. (PAIC). At present, the company is
being managed under the managing directorship of Rana Inder
Pratap Singh. PAIC divested its stake in Rana Sugars during
FY2005 by selling its stake to the promoters, as per the
provisions of the Financial Collaboration Agreement.
RSL's facilities consist of a combined crushing capacity of
15,000 tonnes crushed per day (TCD) including a 5,000 TCD mill
located at Buttar (Punjab) and two capacitates of 5,000 TCD each
located at Moradabad and Rampur (Uttar Pradesh). The company also
generates power using bagasse (a byproduct of sugar) and
currently has a total generation capacity of 105.9 MW. RSL is
also forward integrated to manufacture alcohol and has an alcohol
manufacturing capacity of 60 KLPD located in Punjab. In April
2013, the company launched a pilot project in Punjab for
manufacturing sugar from beetroot.
RTIL: NCLT Mumbai Puts Liquidation Plans on Hold
------------------------------------------------
The Hindu BusinessLine reports that in a victory for the
employees of debt-ridden RTIL (formerly Reid & Taylor India), an
association formed by the staff to scout for potential investors
and revive the firm has secured a stay on the liquidation
process.
Further, the employees' association has also brought in
Hong Kong-based SPGP Holdings (HK) Ltd as an investor. It is
close to submitting a bid for the bankrupt firm, the report says.
BusinessLine relates that the Mumbai bench of the National
Company Law Tribunal (NCLT), which heard a December 19 petition
filed by the Association of Persons (AOP) on January 1, has put
the liquidation proceedings on hold till the disposal of the
application. "The Corporate Insolvency Resolution Process period
ended on January 1, following which the case was referred for
liquidation. But NCLT, considering the December 19 application,
has put the liquidation proceedings on hold till the disposal of
the application," MS Prasanna, General Secretary of the RTIL
Employees' Association, told BusinessLine.
"We also presented an investor before the court, with a director
of the company also attending the court. The director also gave a
written statement to NCLT that SPGP Holdings would be interested
in RTIL's resolution plans but needs 4-6 weeks to submit the
resolution plan," he said.
BusinessLine says SPGP Holdings, which is committing to invest in
RTIL by way of either equity or debt, has readied a corpus of
$250 million. However, the exact amount to be invested will be
decided only after a due diligence process.
The NCLT has also directed the Interim Resolution Professional to
provide RTIL's financials to the investor by January 8. SPGP
Holdings will also file for a 'co-applicant' status along with
the AOP, Prasanna, as cited by BusinessLine, added.
Earlier, nearly 200 employees of RTIL had formed an AOP to scout
for potential investors, revive the company and prevent
liquidation with no major investors evincing interest,
BusinessLine discloses. Edelweiss Asset reconstruction Company
Ltd had earlier dragged RTIL to the NCLT.
On Jan. 1, the AOP (under the Income Tax Act, 1961, an AOP is an
integration of two or more persons for a common purpose) informed
the NCLT that a liquidation would cause irreparable loss and harm
to the employees, BusinessLine says.
BusinessLine notes that RTIL, a vertically-integrated premium
clothing provider, is struggling to pay off its INR3,800-crore
debt.
The apparel range of Reid & Taylor, a brand earlier endorsed by
actors Amitabh Bachchan and Pierce Brosnan, included formal and
casual daywear suits, jackets, trousers, shirts and ties,
accessories. T-shirts, jeans and other weekend wear. In 2008,
Singapore's GIC Special Investments invested INR900 crore in lieu
of a 25.4 per cent stake, the report discloses.
SHREE R.R.PIPES: CARE Maintains D Rating in Not Cooperating
-----------------------------------------------------------
CARE had, vide its press release dated October 31, 2017, placed
the rating of Shree R.R.Pipes under the 'issuer noncooperating'
category as Shree R.R.Pipes had failed to provide information for
monitoring of the rating. Shree R.R.Pipes continues to be non-
cooperative despite repeated requests for submission of
information through e-mails, phone calls and email dated
December 5, 2018. In line with the extant SEBI guidelines, CARE
has reviewed the rating on the basis of the best available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 10.00 CARE D; Issuer Not Cooperating;
Facilities on the basis of best available
information
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The rating has been reaffirmed by taking into account no due-
diligence conducted due to non-cooperation by Shree R.R.Pipes
with CARE'S efforts to undertake a review of the rating
outstanding. CARE views information availability risk as a key
factor in its assessment of credit risk.
Delhi-based, Shree R.R. Pipes, a unit of RKD Pipes Private
Limited (RKD) was established as a proprietorship firm in 2012 by
Mr Sharad Gupta. RRP is operating under RKD and the company has
no other business activity. Mr Sharad Gupta and Ms Ritu Agarwal
are managing the operations of RRP who are also directors in RKD.
The company is primarily engaged in trading of PVC tubes, GI
pipes, Mild steel tubes etc. The company has authorized
distributorship of Jindal Industries Limited and Jindal Steels
Limited for NCR and UP and some areas of Uttaranchal. The company
has a dealership network of around 70-80 dealers.
SHREE RAJ: ICRA Maintains D Rating in Not Cooperating Category
--------------------------------------------------------------
ICRA said the rating for the INR30.00-crore bank facilities of
Shree Raj Mahal Diamonds Pvt. Ltd (SRMD) continues to remain in
the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]D/[ICRA]D ISSUER NOT COOPERATING" .
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 30.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund Based/CC Rating continues to remain in
the 'Issuer Not Cooperating'
category
Short Term- (20.00) [ICRA]D; ISSUER NOT COOPERATING;
Interchangeable Rating continues to remain in
the 'Issuer Not Cooperating'
category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA,
the entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the
rating may not adequately reflect the credit risk profile of the
entity.
SRMD was incorporated in 2010 and is a part of the Delhi based
Shree Raj Mahal Group, which is engaged in the manufacturing,
wholesale and retail sales of gold and diamond. SRMDPL is a
closely held company promoted by Mr. Pradeep Kumar Goel and Mr.
Ashok Kumar Goel. The group has presence largely in gold
jewellery and its customers are primarily wholesalers and
retailers based in New Delhi.
SHRI BALAJI: ICRA Reaffirms D Rating on INR65cr Term Loan
---------------------------------------------------------
ICRA has reaffirmed the rating of bank facilities of Shri Balaji
Sugars and Chemicals Private Limited (SBSCPL) at [ICRA]D.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term-Fund
based Term Loan 65.00 [ICRA]D, reaffirmed
Long Term
Unallocated 15.00 [ICRA]D, reaffirmed
Rationale:
The rating reaffirmation factors in the continued delays in debt
servicing by SBSCPL due to inadequate cash accruals in relation
to the debt servicing requirement from the sugar mill operations
along with high working capital intensity as reflected from high
utilisation of the working capital facilities. This is because of
low sugar realisations prevailing in the industry, coupled with
the high cane cost. This is despite an improvement in cane
crushing levels in SY2018 owing to better monsoon in Karnataka
leading to higher cane availability.
The rating remains constrained by the vulnerability of the sugar
operations to agro-climatic risks and the regulated nature of the
industry in terms of pricing and exports. ICRA, however, takes
note of the presence of a power purchase agreement (PPA) for the
co-generation unit at a relatively remunerative tariff.
Going forward, the company's ability to generate commensurate
accruals for debt repayments through healthy cane crushing levels
supported by healthy sugar realisations, and thereby regularise
its debt repayment track record will remain the key rating
sensitivity.
Key rating drivers
Credit strengths Location-specific advantages with cane-producing
regions already in the project's command area: The sugar plant
benefits from its proximity to the command area and the company
is undertaking numerous initiatives to connect with the farmers
in the command area. These initiatives include - providing
fertilisers to the farmers, training the farmers on cane
cultivation and providing guidance on other relevant issues.
Partially forward integrated nature of the plant with a co-
generation unit: The profitability levels of the 18-MW
cogeneration unit protects the profitability from sugar
cyclicality to some extent. The entire capacity is tied up
through a long-term PPA with Hubli Electricity Supply Company
Limited (HESCOM).
Key management personnel have relatively vast experience in
operating sugar plants: The company's key promoters have close to
two decades of experience in the agro foods industry and lime
industry.
Credit challenges
Delays in debt servicing owing to reduction in sugar realisations
in SY2018: The continued delays in debt servicing by the company
due to inadequate cash accruals in relation to the debt servicing
requirement from the sugar mill operations along with its high
working capital intensity as reflected from high utilisation of
the working capital facilities remain a credit weakness. This is
because of low sugar realisations prevailing in the industry,
coupled with the high cane cost. This is despite an improvement
in cane crushing levels in SY2018 owing to better monsoon in
Karnataka leading to higher cane availability.
Agro-climatic risks on cane availability and high regulatory
intensity of the sugar sector: The sugarcane availability for the
company depends on monsoon experienced in its command area.
Besides the agro-climatic risk, the regulatory intensity of the
sugar sector in terms of controlled sugar sales mechanism,
sugarcane pricing, etc also remain a key sensitivity.
Working capital intensive nature of the sugar industry: The sugar
industry is characterised by high working capital intensity due
to its high inventory holdings. The companies are required to
uplift entire sugarcane production of the farmer, irrespective of
the market demand, which leads to considerable variability in
inventory holding patterns of the company.
Liquidity position
As on March 31, 2018, the company had a cash balance position of
INR8.27 crore. It has sanctioned fund-based limits amounting to
INR34 crore for its operations, which it has completely utilised.
In FY2019, its repayment obligations amount to ~INR0.7 crore.
Shri Balaji Sugars and Chemicals Private Limited (SBSCPL) was
incorporated in 2011. The company has set up a 3500-TCD sugar
plant and 18-MW co-generation unit in Bijapur district in North
Karnataka. The first phase of the project initially was scheduled
to start commissioning from March 2014. The date of commissioning
was later postponed to November 2014. However, the plant's
commercial operations commenced on March 23, 2015 for the first
phase, which essentially involved functioning of the sugar plant
and the co-generation unit. In the second phase, the company is
planning to integrate the existing phase-1 unit with a 60 KLPD1
distillery.
SRINAGAR BANIHAL: ICRA Moves D Rating to Not Cooperating
--------------------------------------------------------
ICRA has moved the ratings for the bank facilities of Srinagar
Banihal Expressway Limited to the 'Issuer Not Cooperating'
category. The rating is now denoted as "[ICRA]D ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based 1,440.00 [ICRA]D ISSUER NOT COOPERATING;
Facilities- Rating moved to the 'Issuer Not
Term Loan Cooperating' category
Rationale
The rating is based on limited cooperation from the entity since
the time it was last rated in June 2017. As part of its process
and in accordance with its rating agreement with Srinagar Banihal
Expressway Limited, ICRA has been sending repeated reminders to
the entity for payment of surveillance fee that became due.
However, despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite cooperation and in line with SEBI's Circular No.
SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, the
company's rating has been moved to the "Issuer Not Cooperating"
category.
Srinagar Banihal Expressway Limited is a special purpose vehicle
promoted by Ramky Infrastructure Ltd. (74%) and Jiangsu
Provincial Transportation Engineering Group Company Limited
(JTEG) (26%) for construction, operation and maintenance of the
four Lanning of the Srinagar-Banihal section of National Highway-
1A from km 187.00 to km 189.350 (Banihal bypass) and km 220.700
to km 286.110 (approximately 67.76 km) on design, build, finance,
operate and transfer (annuity) basis under the National Highways
Development Project (NHDP Phase II). The total revised cost of
the project is INR2000 crore. The total concession period is 20
years including the construction period of 3 years. SBEL will
receive a fixed annuity payment of INR134.82 crores semi-annually
for a period of 17 years. The project is being funded by INR1440
crore debt and INR360 crore of promoters' contribution and one
time fund infusion from NHAI of INR200 crore. The project
achieved provisional commercial operations date (PCOD) in April
2018. As against planned financial progress of 100.00%, actual
financial progress is 95.20% as on September 2018.
SURYA PLASTIC: CARE Maintains 'D' Rating in Not Cooperating
-----------------------------------------------------------
CARE had, vide its press release dated September 1, 2017, placed
the rating of Surya Plastic Manufacturing Private Limited under
the 'issuer non-cooperating' category as Surya Plastic
Manufacturing Private Limited had failed to provide information
for monitoring of the rating.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 9.00 CARE D; Issuer Not Cooperating;
Facilities Based on best available
information
Surya Plastic Manufacturing Private Limited continues to be non-
cooperative despite repeated requests for submission of
information through e-mails, phone calls and email dated
December 5, 2018. In line with the extant SEBI guidelines, CARE
has reviewed the rating on the basis of the best available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating. Users of this rating (including
investors, lenders and the public at large) are hence requested
to exercise caution while using the above rating(s).
The rating has been reaffirmed by taking into account no due-
diligence conducted due to non-cooperation by Surya Plastic
Manufacturing Private Limited with CARE'S efforts to undertake a
review of the rating outstanding. CARE views information
availability risk as a key factor in its assessment of credit
risk.
Bhiwani (Haryana) based Surya Plastics Manufacturing Private
Limited (SPMPL) was incorporated as a Private Limited Company in
2012 by Mr. Keshav Aggrawal and Ms. Ruchi Aggarwal. The company
commenced its operation in January 2016. The company is engaged
in manufacturing of non -woven fabric and Poly Proplyene (PP)
tape. The manufacturing facility is located at Bhiwani. The key
raw material is plastic granules which are procured domestically.
The company markets non-woven fabric through dealers located in
Delhi, Haryana and Rajasthan etc.
SUSHEE INFRA: Ind-Ra Migrates 'D' LT Rating to Non-Cooperating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Sushee Infra &
Mining Limited's (Sushee) Long-Term Issuer Rating to 'IND D' from
'IND BB+' while migrating it to the non-cooperating category. The
rating was on Rating Watch Negative (RWN). The issuer did not
participate in the rating exercise despite continuous requests
and follow-ups by the agency. Therefore, the rating is based on
the best available information. The rating will now appear as
'IND D (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR1.0 bil. Fund-based working capital limits downgraded and
migrated to non-cooperating category; Off RWN with IND C
(ISSUER NOT COOPERATING) / IND A4 (ISSUER NOT COOPERATING)
rating;
-- INR5.320 bil. Non-fund-based working capital limit downgraded
and migrated to non-cooperating category; Off RWN with IND C
(ISSUER NOT COOPERATING) / IND A4 (ISSUER NOT COOPERATING)
rating;
-- INR200 mil. Proposed fund-based working capital limits
downgraded and migrated to non-cooperating category; Off RWN
with Provisional IND C (ISSUER NOT COOPERATING) / Provisional
IND A4 (ISSUER NOT COOPERATING) rating; and
-- INR2.680 bil. Proposed non-fund-based working capital limits
downgraded and migrated to non-cooperating category; Off RWN
with Provisional IND C (ISSUER NOT COOPERATING) / Provisional
IND A4 (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information.
KEY RATING DRIVERS
The downgrade and resolution of RWN are driven by delays in
servicing of some of its bank facilities due to a tight liquidity
position, as confirmed by the bankers of the company. However,
the details of the same are not available.
The ratings have been migrated to the non-cooperating category as
the company did not provide Ind-Ra with information related to
its business and financial profiles.
RATING SENSITIVITIES
Positive: Timely debt servicing for three consecutive months
would be positive for the ratings.
COMPANY PROFILE
Incorporated in 1986, Sushee infrastructure Company Ltd
undertakes mining, irrigation, railways, and road projects. Its
clients include the Irrigation Department of Andhra Pradesh,
Singareni Collieries, Coal India Ltd, Indian Railways and
Ministry of Road Transport & Highways.
VINTAGE HOME: CARE Lowers Rating on INR5.75cr LT Loan to D
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Vintage Home Fashions (VHF), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 5.75 CARE D; Issuer not cooperating,
Facilities Revised from CARE C, on the
basis of best available
information
CARE had, vide its press release dated April 5, 2018, placed the
rating(s) of VHF under the 'issuer non-cooperating' category as
VHF had failed to provide information for monitoring of the
rating. VHF continues to be non-cooperative despite repeated
requests for submission of information through phone calls and
emails. In line with the extant SEBI guidelines, CARE has
reviewed the rating on the basis of the best available
information. Users of this rating (including investors, lenders
and the public at large) are hence requested to exercise caution
while using the above rating(s). The ratings have been revised
on account of ongoing delays in debt servicing.
Detailed description of the key rating drivers
The revision in the rating takes into consideration the following
weaknessess:
Key rating Weaknesses
Ongoing delays in debt servicing: There are instances of over
utilization of cash credit limit which is settled within 40 days.
The delays are on account of weak liquidity as the firm is unable
to generate sufficient funds on timely manner leading to cash
flow mismatches.
Small scale of operations: The total operating income of VHF
declined from INR33.15 crore in FY17 (refers to the period
April 1 to March 31) to INR22.56 crore in FY18 on account of
lower quantity sold owing to lower orders received. The small
scale of operations limits the firm's financial flexibility in
times of stress and deprives it from scale benefits. Furthermore,
the firm reported total operating income of INR12.00 crore in
8MFY19 (Provisional).
Weak solvency position & liquidity position: The capital
structure of the firm stood leveraged with overall gearing ratio
of 6.55x as on March 31, 2018. The same, however, improved from
14.05x as on March 31, 2017 on account of increase in net worth
base of the firm owing to infusion of funds by proprietor
amounting to INR0.38 crore and also due to accretion of profits
into it. The debt coverage indicators continued to remain weak
characterized by interest coverage ratio of 1.51x in FY18 and
total debt to GCA of 19.66x for FY18.
The liquidity position of the firm has remained weak with quick
ratio of 0.30x as on March 31, 2018, however, current ratio stood
moderate at 1.46x as on March 31, 2018. The firm had free cash
and bank balance of INR0.02 crore as on March 31, 2018.
The average operating cycle of the firm stood elongated at 136
days for FY18. The firm manufactures different types of home
furnishing products such as curtains, carpets, quilts, blankets,
etc. and therefore it needs to maintain sufficient stock of
different forms of raw materials for smooth production process as
well as stock of finished goods which resulted in high average
inventory period for FY18. Procurement of higher raw material
inventory in the month of March, 2018 resulted in higher
inventory period for FY18 and consequently, higher payment period
as well. Furthermore, the firm extends a liberal credit period
of around two-three months to its customers due to its presence
in highly competitive industry which resulted in collection
period of 67 days for FY18. As per banker, the cash credit limit
remained fully utilized for the last 12 months period ended
November, 2018.
Intense competition: The home furnishing products industry is
characterized by numerous small players and is concentrated in
the northern part of India. Low investment requirement makes the
industry highly competitive. Smaller companies in general are
more vulnerable to intense competition due to their limited
pricing flexibility, which constrains their profitability as
compared to larger companies who have better efficiencies and
pricing power considering their scale of operations. VHF also
faces stiff competition from cheaper imports from China,
Bangladesh and Vietnam in the same product segment.
Proprietorship nature of constitution VHF's constitution as a
proprietorship firm has the inherent risk of possibility of
withdrawal of the proprietors' capital at the time of personal
contingency and firm being dissolved upon the
death/retirement/insolvency of proprietor
Key Rating Strengths Experienced proprietor
VHF is a proprietorship firm being managed by Mr. Puneet Chugh.
Mr. Puneet Chugh has a total work experience of more than one and
a half decades which he has gained through his association with
VHF only. Furthermore, the proprietor is supported by experienced
team having varied experience in the field of marketing and
finance aspects of business.
VHF was established in April 1999 as a proprietorship firm by Mr
Puneet Chugh. The firm is engaged in the manufacturing of textile
home furnishing products which includes bed sheets, curtains,
quilts, blankets, carpets, etc, at its manufacturing unit located
in Panipat, Haryana. The firm has an installed capacity of 85
lakh units per annum as on March 31, 2018. VHF sells its finished
products under its own brand name 'Blanc' to the online sales
portals including Naaptol Online, Best Deal TV, etc. and also to
wholesalers including reputed customers like Welspun India
Limited (rated 'CARE AA; Stable/ CARE A1+'), The Bombay Dyeing
and Manufacturing Company Limited. The firm has in house facility
of printing, dyeing and designing of furnishing products.
VIZAG PROFILES: CARE Moves D Rating to Not Cooperating Category
---------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Vizag
Profiles Private Limited to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 40.00 CARE D; Issuer not cooperating;
Facilities Based on best available
information
Short term Bank 76.00 CARE D; Issuer not cooperating;
Facilities Based on best available
information
Detailed Rationale & Key Rating Drivers
Vizag Profiles Private Limited has not paid the surveillance fees
for the rating exercise agreed to in its Rating Agreement. In
line with the extant SEBI guidelines, CARE's rating on Vizag
Profiles Private Limited's bank facilities will now be denoted as
CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The ratings assigned to the bank facilities of Vizag Profiles
Private Limited takes into consideration elongated working
capital cycle during FY18 (April 1 to March 31) due to the
subdued steel industry scenario resulting in stretched liquidity
position and consequently leading to delays in servicing of debt
obligations.
Detailed description of the key rating drivers
Key Rating Weaknesses
Ongoing delays in meeting the debt obligations on time due to
stressed liquidity: The company during FY18 had elongated working
capital cycle due to the subdued steel industry scenario
resulting in stretched liquidity position and consequently
leading to delays in servicing of debt obligations.
Incorporated on November 20, 1997, Vizag Profiles Pvt Ltd (VPPL)
is primarily engaged in the trading of steel and steel products
(like TMT Bars, billets, steel wires etc) at Vijayawada, Andhra
Pradesh. However the company is also engaged in cargo handling
and trading in oil and lubricants. The company is promoted by Mr.
Bandi Suresh Kumar who has more than two decades of experience in
the trading and manufacturing of steel and steel products. The
promoter being in the line of activity for more than two decades
has established long term relationships with both suppliers and
clients.
=================
S I N G A P O R E
=================
FORELAND FABRICTECH: Q3 Net Loss Widens to SGD196,500
-----------------------------------------------------
The Strait Times reports that net loss for Foreland Fabrictech
widened to CNY988,000 (SGD196,500) for the third fiscal quarter
ended Sept. 30, 2018, from a net loss of CNY621,000 a year ago,
the company disclosed in a Singapore Exchange (SGX) filing on
Dec. 20, 2018.
Third quarter revenue for the Chinese textile maker was nil,
unchanged from the previous third quarter. Loss per share
increased to CNY0.0018, from loss per share of CNY0.0011 for Q3
2017, the Strait Times relays.
For the nine months ended Sept. 30, 2018, net loss was CNY2.4
million, compared with a net loss of CNY86.5 million in the
previous year. The group had no revenue in the period, the same
as for the first nine months of 2017, the Strait Times notes.
Loss per share was CNY0.0045, compared with loss per share of
CNY0.1546 for the corresponding period of the previous year, the
Strait Times discloses.
The company is insolvent, and is exploring various options
through discussions with major shareholders and potential
investors, Foreland Fabrictech said, the report relays. The group
intends to shift its focus to alternative industries, and will
update shareholders in due course on any material developments in
this regard, according to the Strait Times.
Foreland Fabrictech also posted its first quarter and half year
results on Dec. 20, 2018.
Shares of Foreland Fabrictech remain suspended on the SGX, the
report notes.
Foreland Fabrictech Holdings Limited manufactures and produces
fabrics. The Company's process includes weaving, dyeing, coating,
and finishing of fabrics.
HYFLUX: Gets More Time to Report Financial Results, Conduct AGM
---------------------------------------------------------------
The Strait Times reports that the Singapore Exchange has granted
Hyflux further extensions to report its financials and to conduct
its annual general meeting for fiscal 2018 as it undergoes
reorganisation, the cash-strapped water treatment company
announced on Jan. 2.
According to the report, Hyflux now has until June 30, 2019 or
before the lifting of its trading suspension to announce its
results for the second and third quarters of fiscal 2018, a 4.5-
month extension. The same deadline will apply for reporting its
full-year 2018 results, a four-month extension. The company also
received a four-month extension to conduct an annual general
meeting for FY2018, which was originally supposed to be held by
April 30, 2019; and a three-month extension to report its
financials for the first quarter of fiscal 2019.
The Strait Times relates that the latest extensions come after
Hyflux had in July last year requested for a six-month extension
to announce its financial statements for the second quarter ended
June 30, which was supposed to be announced by Aug. 14, 2018;
along with a three-month extension to release its third-quarter
results.
In its regulatory filing on Jan. 2, the company said the duration
of these further extensions is linked to its debt moratorium,
which will provide the group with time to reorganise its
liabilities and businesses, the report relays.
The report says the Singapore High Court had previously granted
Hyflux a 4.5-month extension of its debt moratorium to April 30,
2019.
The company added that there has been a standstill on the payment
of all pre-May 22, 2018 debts since its application on that date
for a six-month moratorium for itself and its units, and is
facing stringent controls on the group's cash, such as paying
only critical expenses relevant to the reorganization, according
to the Strait Times.
"The group is currently progressing with the reorganisation, and
the aim is to conclude the reorganisation as soon as possible and
continue trading with a more stable financial position," Hyflux,
as cited by The Strait Times, said.
The water treatment firm on Oct. 18 also announced that it had
entered into a restructuring agreement with an investor for a
total investment of $530 million, subject to various conditions,
the report notes.
According to the Strait Times, Hyflux said that since it is
negotiating terms of its reorganisation under the court-
supervised process and the six-month moratorium, releasing its
financial statements at this point before in-principle agreement
of any terms of agreement that could arise, or before there is
clarity on any financing proposals to be put forth, could result
in inaccurate and incomplete reflection of financial information.
"The company can only start to prepare the relevant financial
statements when it has certainty regarding the terms of the
reorganisation and the financing proposals (if any), which is
expected to take additional time," Hyflux said.
Most recently, Hyflux on Jan. 31 said it has obtained approval
from secured lender Maybank to extend the timeline for the
divestment of the Tuaspring integrated water and power plant, the
Strait Times reports.
The report relates that Maybank is now giving Hyflux until
Jan. 31, 2019 to execute a binding agreement with a successful
bidder or investor, an extension of the Oct. 29, 2018 deadline
earlier agreed upon. Maybank reserves the right to terminate the
collaboration agreement if the new deadline is breached, the
Strait Times adds.
About Hyflux
Singapore-based Hyflux Ltd -- https://www.hyflux.com/ -- provides
various solutions in water and energy areas worldwide. The
company operates through two segments, Municipal and Industrial.
The Municipal segment supplies a range of infrastructure
solutions, including water, power, and waste-to-energy to
municipalities and governments. The Industrial segment supplies
infrastructure solutions for water to industrial customers.
As reported in the Troubled Company Reporter-Asia Pacific on
May 24, 2018, Hyflux Ltd. said that the Company and five of its
subsidiaries, namely Hydrochem (S) Pte Ltd, Hyflux Engineering
Pte Ltd, Hyflux Membrane Manufacturing (S) Pte. Ltd., Hyflux
Innovation Centre Pte. Ltd. and Tuaspring Pte. Ltd. have applied
to the High Court of the Republic of Singapore pursuant to
Section 211B(1) of the Singapore Companies Act to commence a
court supervised process to reorganize their liabilities and
businesses. The Company said it is taking this step in order to
protect the value of its businesses while it reorganises its
liabilities.
The Company has engaged WongPartnership LLP as legal advisors and
Ernst & Young Solutions LLP as financial advisors in this
process.
====================
S O U T H K O R E A
====================
NIPPON STEEL: Wartime Laborers File for JV Asset Seizure
--------------------------------------------------------
Asian Nikkei Review reports that lawyers representing former
South Korean laborers forced to work for Nippon Steel & Sumitomo
Metal during World War II have followed through on their threat
to move to seize company assets in South Korea if the steelmaker
did not engage in talks over court-ordered compensation.
The Nikkei relates that the attorneys said on Jan. 2 they have
filed a petition for the seizure of assets with the Daegu
District Court. The move follows a late-October ruling by the
Supreme Court that ordered the Japanese company to compensate the
laborers, the report says.
The petition, filed on Dec. 31, 2018, targets 2.34 million shares
Nippon Steel owns of PNR, a recycling joint venture with Korean
steelmaker Posco. The 30% stake has an estimated value of KRW11
billion ($9.8 million), according to Nikkei.
The Nikkei says the petition seeks only a seizure of the stocks,
not a liquidation of those shares into cash. The plaintiffs'
lawyers explained that they want an "amicable solution" through
dialogue." But a court-designated execution officer could force
the process forward.
Nippon Steel has learned of the filing from media reports but has
yet to confirm it publicly, the Nikkei states. But if the filing
is true, that would be "extremely regrettable," a company
representative said. The corporation will discuss the matter with
the Japanese government and respond appropriately, the
representative said, the report relays.
Following the October ruling by the Supreme Court, the
plaintiffs' lawyers have visited Nippon Steel's headquarters in
Tokyo to discuss the matter, but the company did not comply. They
set a Dec. 24, 2018, deadline for the company to respond, the
report notes.
According to the Nikkei, Japan's position is that the matter has
been resolved based on a 1965 treaty that normalized diplomatic
ties with South Korea. But the laborers' advocates have been
seeking more compensation from Japanese companies, putting
strains on bilateral relations.
In a separate case involving Korean Women's Volunteer Labor Corps
against Mitsubishi Heavy Industries, plaintiffs' lawyers said
they would request talks with the Japanese company, hoping to
resolve the matter by February. If dialogue does not lead to
resolution, they may file to seize Mitsubishi Heavy's patents
filed in South Korea, the Nikkei reports citing media reports.
*********
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
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
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 2019. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000.
*** End of Transmission ***