/raid1/www/Hosts/bankrupt/TCRAP_Public/190124.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, January 24, 2019, Vol. 22, No. 017
Headlines
A U S T R A L I A
DREAM OF GREEN: First Creditors' Meeting Set for Jan. 31
ENVIROLIFE PTY: Court Appoints Clifton Hall as Liquidator
GENE PACKAGING: Second Creditors' Meeting Set for Feb. 4
PLANDO HUMAN: First Creditors' Meeting Set for Feb. 1
PLANTATION ENERGY: Second Creditors' Meeting Set for Feb. 1
RVF (CHILE): Second Creditors' Meeting Set for Jan. 31
SHOPSMART PHARMACY: First Creditors' Meeting Set for Jan. 30
STEELVISION PTY: First Creditors' Meeting Set for Feb. 4
C H I N A
CHINA: Corp. Defaults Highlight Disclosure, Governance Issues
CHINA EVERGRANDE: Issues More Bonds to Cover Debt
CHINA SINGYES: Falls 72% as Trading Resumes After Suspension
HSIN CHONG: Files for Provisional Liquidation and Faces Delisting
TONGLIAO CITY: Fitch Withdraws BB- LT IDR on Insufficient Info
XINYI CITY: Fitch Affirms BB- LT IDR, Outlook Stable
I N D I A
AARTI INFRASTRUCTURE: Ind-Ra Moves BB Rating to Non-Cooperating
AHZ INTERIOR: Insolvency Resolution Process Case Summary
ALBUS INDIA: Insolvency Resolution Process Case Summary
ANTONY ROAD: CARE Migrates B+ Rating to Not Cooperating
ARJUN ISPAT: Insolvency Resolution Process Case Summary
B J HOTELS: CARE Lowers Rating on INR6.12cr LT Loan to D
BHARATI DEFENCE: NCLT Rejects Edelweiss Bid; Orders Liquidation
BLUEFERN VENTURES: Insolvency Resolution Process Case Summary
GE GODAVARY: Insolvency Resolution Process Case Summary
HARIOM COTGIN: CRISIL Maintains D Rating in Not Cooperating
HI-TECH RADIATORS: Ind-Ra Migrates BB+ Rating to Non-Cooperating
IDEAL PRINTOGRAPHICS: Insolvency Resolution Process Case Summary
IL&FS GROUP: May Appoint Forensic Auditor to Look into Books
INDRA TUBES: CRISIL Maintains B+ Rating in Not Cooperating
J G FOUNDRY: CRISIL Maintains B+ Rating in Not Cooperating
JHARKHAND ROAD: Ind-Ra Lowers Rating on INR17.30BB Loan to 'D'
JONAS WOODHEAD: CARE Assigns B+ Rating to INR7.05cr LT Loan
KIZHAKKEBHAGATHU RICE: CRISIL Keeps C Rating in Not Cooperating
MANIS OILS: Insolvency Resolution Process Case Summary
MAXOUT INFRASTRUCTURES: CRISIL Keeps D Rating in Not Cooperating
MEGHA GUM: CRISIL Maintains D Rating in Not Cooperating
MONNET ISPAT: IFCI Moves NCLAT Against AION-JSW Resolution Plan
N. E. AGENCY: CRISIL Maintains B+ Rating in Not Cooperating
NUDDEA PLANTATIONS: Insolvency Resolution Process Case Summary
OSHINA EXPO: CARE Assigns B+ Rating to INR5cr LT Loan
OZONE INFRA: CARE Migrates D Rating to Not Cooperating Category
P.D. BAJORIA: CARE Lowers Rating on INR7.48cr Loan to B-
PASHUPATI CASTINGS: CRISIL Maintains B+ Rating in Not Cooperating
PRANAVAM AEROSPACE: CRISIL Withdraws B Rating on INR17cr Loans
PRAVEEDH DECOR: CARE Migrates B+ Rating to Not Cooperating
PRIMROSE INFRATECH: Insolvency Resolution Process Case Summary
RAJASTHAN TOURS: CRISIL Maintains B+ Rating in Not Cooperating
RAJATHADRI JEWELLERS: Ind-Ra Migrates D Rating to Non-Cooperating
RCM INFRASTRUCTURE: Insolvency Resolution Process Case Summary
SAHYOG INDUSTRIES: CARE Assigns B+ Rating to INR5.49cr LT Loan
SHANKAR ENTERPRISES: Ind-Ra Withdraws BB on INR100MM Loans
SHIV SHAKTI: CARE Lowers Rating on INR11.20cr LT Loan to B+
SHRI SHYAMJI: Insolvency Resolution Process Case Summary
SHUBHKAMNA BUILDTECH: Insolvency Resolution Process Case Summary
SINGHAM BIO: CARE Assigns B+ Rating to INR8.75cr Loan to B+
SREE GURUDEVA: Ind-Ra Lowers INR161.24MM Bank Loan Rating to 'D'
TRUST CHEMISTS: Ind-Ra Affirms B LT Issuer Rating, Outlook Stable
TULSI EXTRUSIONS: Insolvency Resolution Process Case Summary
UNIQUE CHAINS: CRISIL Withdraws B+ Rating on INR20cr Loans
UNTITEK POWER: Insolvency Resolution Process Case Summary
WHITE HORSE: Insolvency Resolution Process Case Summary
P H I L I P P I N E S
RIZAL COMMERCIAL BANK: Fitch Puts BB+ LT IDR on Rating Watch Neg.
S I N G A P O R E
CHINA FISHERY: Court Junks Bid to Intervene in Suit vs HSBC
RHODIUM RESOURCES: Fitch Withdraws B- IDR for Commercial Purposes
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A U S T R A L I A
=================
DREAM OF GREEN: First Creditors' Meeting Set for Jan. 31
--------------------------------------------------------
A first meeting of the creditors in the proceedings of Dream of
Green Pty Ltd will be held on Jan. 31, 2019, at 11:00 a.m. at
Suite 14.03 'MLC Centre', 19 Martin Place, in NSW.
Costa Nicodemou -- costa@newpointadvisory.com -- of New Point
Advisory was appointed as administrator of Dream of Green on
Jan. 21, 2019.
ENVIROLIFE PTY: Court Appoints Clifton Hall as Liquidator
---------------------------------------------------------
Timothy Clifton of Clifton Hall was appointed Liquidator of
Envirolife Pty Ltd, Formerly Trading as PowerVault Australia-SE
Asia, on Jan. 23, 2019, by Order of the Federal Court of
Australia.
GENE PACKAGING: Second Creditors' Meeting Set for Feb. 4
--------------------------------------------------------
A second meeting of creditors in the proceedings of Gene Packaging
Pty Ltd, trading as "Premium Packaging" has been set for Feb. 4,
2019, at 11:00 a.m. at the offices of Amos Insolvency, at 25/ 185
Airds Road, in Leumeah, NSW.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Feb. 1, 2019, at 4:00 p.m.
Peter Andrew Amos of Amos Insolvency was appointed as
administrator of Gene Packaging on Oct. 23, 2018.
PLANDO HUMAN: First Creditors' Meeting Set for Feb. 1
-----------------------------------------------------
A first meeting of the creditors in the proceedings of Plando
Human Capital Pty Ltd will be held on Feb. 1, 2019, at 11:00 a.m.
at the offices of Farnsworth Shepard, at Level 5, 2 Barrack
Street, in Sydney, NSW.
Adam Shepard of Farnsworth Shepard was appointed as administrator
of Plando Human on Jan. 21, 2019.
PLANTATION ENERGY: Second Creditors' Meeting Set for Feb. 1
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Plantation
Energy Australia Pty Ltd has been set for Feb. 1, 2019, at 1:00
p.m. at the offices of Ferrier Hodgson, at Level 28, 108 St
Georges Terrace, in Perth, WA.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Jan. 31, 2019, at 4:00 p.m.
Martin Bruce Jones and Andrew Michael Smith of Ferrier Hodgson
were appointed as administrators of Plantation Energy on Dec. 18,
2018.
RVF (CHILE): Second Creditors' Meeting Set for Jan. 31
------------------------------------------------------
A second meeting of creditors in the proceedings of RVF (Chile)
Pty Ltd has been set for Jan. 31, 2019, at 11:00 a.m. at the
offices of PCI Partners Pty Ltd, at Level 8, 179 Queen Street, in
Melbourne, Victoria.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Jan. 30, 2019, at 5:00 p.m.
P Newman of PCI Partners Pty was appointed as administrators of
RVF (Chile) on Nov. 5, 2018.
SHOPSMART PHARMACY: First Creditors' Meeting Set for Jan. 30
------------------------------------------------------------
A first meeting of the creditors in the proceedings of Shopsmart
Pharmacy Franchising Pty Ltd will be held on Jan. 30, 2019, at
11:00 a.m. at the offices of Veritas Advisory, at Level 5, 123
Pitt Street, in Sydney, NSW.
Steve Naidenov and Vincent Pirina of Veritas Advisory were
appointed as administrators of Shopsmart Pharmacy on Jan. 17,
2019.
STEELVISION PTY: First Creditors' Meeting Set for Feb. 4
--------------------------------------------------------
A first meeting of the creditors in the proceedings of Steelvision
Pty Ltd will be held on Feb. 4, 2019, at 11:00 a.m. at the offices
of CPA Australia Ltd, at 28 Freshwater Place, in
Southbank, Victoria.
Richard Rohrt and Stephen Dixon of Hamilton Murphy were appointed
as administrators of Steelvision Pty on Jan. 22, 2019.
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C H I N A
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CHINA: Corp. Defaults Highlight Disclosure, Governance Issues
-------------------------------------------------------------
Three defaults in recent months have highlighted the risk of
broader disclosure and governance problems among Chinese
corporates, as well as the variable quality of local auditing,
says Fitch Ratings. Shandong SNTON Group Co. (Snton, RD), Reward
Science and Technology Industry Group Co. (Reward, RD) and Kangde
Xin Composite Material Group Co. (KDX, WD) all defaulted on
moderate amounts relative to their reported cash holdings.
Corporate defaults are usually driven by insufficient liquidity,
but these companies' stated cash balances cannot explain the non-
payments. Snton was sued by the Hebei Bank Qingdao Branch on
September 25 for CNY139 million, which included defaulted
principal of two drawn facilities. It had a reported cash balance
of CNY4 billion at end-June, of which Fitch estimates roughly half
was unrestricted, which should have provided a significant buffer
against default. It was also able to raise CNY400 million through
domestic bond issuance in 1H18, suggesting normal access to the
domestic funding market, despite generally tight credit
conditions.
Reward failed to repay CNY300 million of commercial paper on
December 6, despite having CNY4.9 billion in cash - just CNY548
million of which was restricted - at end-June 2018, and CNY4.2
billion at end-September, according to its management accounts.
KDX failed to repay CNY1 billion of commercial paper on 15
January. It had reported available cash of CNY15 billion and a net
cash position in September.
These companies did not show other typical signs of distress prior
to the defaults. The rise in Snton's leverage in 2017 was above
Fitch's expectations and drove our downgrade of the company's
rating in May 2018, but its FFO net leverage of around 3.5x at
end-June 2018 did not indicate an unsustainable capital structure.
Reward's FFO interest coverage was over 3.5x in 9M18, while KDX
was around 5x in 1H18.
The defaults call into question the actual availability and
amounts of reported cash balances. The three companies reported
their restricted cash balances in line with Chinese accounting
standards - China GAAP - which mandate similar disclosures on cash
encumbrances to international standards. It is unclear if there
were less formal restrictions in place, such as agreements with
lending institutions to keep sums in designated accounts to
support facility access. In any case, Reward and KDX confirmed to
Fitch shortly before their commercial paper due dates that their
holdings of realisable cash were sufficient to meet obligations.
Uncertainty over the accuracy of the companies' books and
disclosure of pertinent information is ultimately related to
governance and accounting quality. Governance issues - often
challenging to uncover - have been a factor in Fitch's ratings on
Reward and KDX. Reward's ratings have been constrained by its low
transparency as a private unlisted company with concentrated share
ownership. The company changed auditor and re-issued its 2017
accounts due to disclosure and accounting problems flagged by the
regulator.
KDX is listed on the Shenzhen Stock Exchange (SSE), but an
apparent problem with its disclosure of concerted party
arrangements at shareholder level prompted an SSE investigation,
which hampered access to funding and prompted our downgrade in
December. Snton's case demonstrates unpredictable financial
management. It failed to repay domestic bank loans, but has
continued to service onshore bonds.
All three companies are audited by domestic accounting firms.
International bond investors have become more receptive of Chinese
issuers choosing not to hire one of the "Big Four" international
accounting firms over the past decade. However, the quality of
domestic auditing is variable. It is not unprecedented for
domestic audit firms to be reprimanded for shortcomings. The
auditors of Snton, Reward and KDX have previously received
reprimands, albeit not for their work on these companies.
CHINA EVERGRANDE: Issues More Bonds to Cover Debt
-------------------------------------------------
The Standard reports that China Evergrande Group said it will
issue US$3 billion senior notes to cover debt from a previous
issue.
The company will issue of an additional US$1.1 billion, US$875
million and US$1.025 billion senior notes at 7 percent, 6.25
percent and 8.25 percent respectively, the report relates.
The Standard says the company entered into the purchase agreement
with Credit Suisse, CEB International, China CITIC Bank
International and UBS in relation to the additional notes issue.
As previously reported by The Troubled Company Reporter-Asia
Pacific, Fitch Ratings upgraded China Evergrande Group's
(B+/Positive) senior unsecured rating and the ratings on all its
outstanding notes to 'B+/RR4' from 'B-/RR6'. The upgrade follows
the drop in the China-based homebuilder's total debt by CNY60
billion by end-June 2018 from end-2017. Evergrande is also using
more payables, non-controlling interest funding as well as
offshore unsecured debt to replace prior-ranking onshore debt,
which will reduce the subordination of its senior notes.
China Evergrande Group is an integrated residential property
developer. The Company, through its subsidiaries, operates in
property development, investment, management, finance, internet,
health, culture, and tourism markets.
CHINA SINGYES: Falls 72% as Trading Resumes After Suspension
------------------------------------------------------------
SCMP.com reports that shares of China Singyes Solar Technologies
Holdings plunged as much as 72 per cent as trading resumed after a
three-month suspension that had prevented investors from selling
on its earlier debt-default news.
SCMP.com says the fall happened despite the privately backed firm
saying it may have found a state-owned utility as its potential
white knight.
According to SCMP.com, the Zhuhai-based firm, controlled by
mainland businessman Liu Hongwei, said Strong Eagle Holdings -
53 per cent owned by chairman Liu - has inked a memorandum of
understanding to potentially buy Singyes shares from Strong Eagle
as well as new Singyes shares to be issued.
It is non-legally binding, the report notes. Completion of the
transaction is subject to due diligence results, the Hong Kong-
listed Singyes successfully reaching an agreement with its
creditors to restructure its debt, and board and shareholders
approval of the shares purchase, the report notes.
SCMP.com relates that Singyes and Strong Eagle must not negotiate
or agree to sell Singyes shares to any other parties for two
months, other than the potential buyer, Shandong provincial
government-owned Shuifa Energy Group.
"The possible transaction is subject to further negotiation and
execution of a formal sale and purchase agreement," SCMP.com
quotes Singyes as saying in a filing to Hong Kong's bourse on Jan.
22. "It is contemplated the potential purchaser will own not less
than 50.1 per cent of the enlarged issued share capital of the
company."
This means the buyer will be required to make an offer to buy
shares owned by other Singyes shareholders at the same price under
Hong Kong's securities regulations, it added, SCMP.com relays.
China Singyes said in mid October it failed to repay a US$160
million bond and interest owed, SCMP.com recalls. It has a US$260
million note to repay by next month, according to Fitch Ratings.
It also has a CNY930 million bond due in August this year,
SCMP.com discloses.
Shuifa Energy, set up in July 2017, is part of Shuifa Group, which
engages in water supply and sewage treatment, agriculture, natural
gas supply and solar, hydro, wind, biomass power generation.
Energy takes up just over a quarter of the group's total assets,
including 140 mega-watts of solar farms.
China Singyes Solar Technologies Holdings Limited, an investment
holding company, designs, fabricates, and installs conventional
curtain walls and solar projects in Mainland China, Malaysia,
Macau, Hong Kong, the United States, Africa, and Oceania. Its
solar projects include building integrated photovoltaic systems,
roof top solar systems, and ground mounted solar systems.
Its debt default was a result of over-expansion into capital-
intensive solar farms investment and Chinese banks' credit
tightening last year as part of Beijing's economic debt
deleveraging, which hit private enterprises particularly hard,
SCMP.com notes.
HSIN CHONG: Files for Provisional Liquidation and Faces Delisting
-----------------------------------------------------------------
SCMP.com reports that Hsin Chong Group Holdings, the Hong Kong
construction major behind the iconic Ocean Park and former Kai Tak
Airport, could be delisted in July after filing for provisional
liquidation earlier this week.
The development came just before the company defaulted on a US$150
million bond due on Jan. 22, the report says.
According to SCMP.com, the Supreme Court of Bermuda approved Hsin
Chong's application to go into provisional liquidation. Edmund
Yeung Lui-ming and Glen Ho Kwok-leung of Deloitte Touche Tohmatsu
Hong Kong, and Rachelle Ann Frisby, of Deloitte in Bermuda have
been named joint provisional liquidators, the company said in a
filing to the Hong Kong stock exchange on Jan. 21, SCMP.com
relays.
SCMP.com says the company, whose shares have been suspended from
trading for 21 months, will be delisted on July 31 if it is unable
to resolve its issues by then. The stock exchange last August
introduced a new rule to delist a company that has been suspended
for 18 months, or 12 months in the case of a company that had been
suspended before the rule was introduced.
The 80-year-old company, chaired by Shanghai businessman Lin
Zhuoyan, has previously been in talks with several potential white
knights including Greenland Holdings, 46.4 per cent owned by the
Shanghai government, the Post reported in September, quoting two
anonymous sources.
Hsin Chong has previously also been in talks with Hong Kong-listed
property companies Poly Property Group and Kaisa Group Holdings
for potential partnership, SCMP.com relates citing an exchange
filings from last May.
"Hsin Chong is still in discussions with these potential white
knights," a source close to Hsin Chong told the South China
Morning Post. "The company is hoping to be able to reach a deal
with one of them to restructure its debts. This is why the company
applied for provisional liquidation to safeguard its assets and
prevent creditors from taking it."
SCMP.com relates that the source said Hsin Chong's problem arose
after its rapid expansion on the mainland over the past few years.
"It still has thousands of staff, talented engineers and
contractors with experience in complex construction projects. If
the white knight can inject new capital, it can help the company
get back on track."
Hsin Chong has faced many lawsuits from different creditors for
non-repayment of loans, with the latest default taking place on
its 8.5 per cent, US$150 million senior notes, SCMP.com discloses.
The company has met certain holders of the notes and their
advisers to discuss a potential "consensual restructuring" of the
debt, Hsin Chong said in a filing on Jan. 22. It anticipates
continuing this dialogue and holders of the notes are invited to
contact the company, Hsin Chong, as cited by SCMP.com, added.
Hsin Chong, founded by the Yeh family during the early years of
the second world war, has been involved in building many of the
city's most iconic landmarks as well as the first large scale
private housing estate Mei Foo Sun Chuen located in Lai Chi Kok,
Kowloon. In recent years, it turned to building hotels in Macau,
including the Sands, the Venetian, Four Seasons, Sands Cotai
Central and the Parisian.
The Yeh family ceded control of Hsin Chong to the Mission Hills
Group in 2007 and later to Lin Zhuoyan, SCMP.com discloses.
Since then, the company has taken on more projects in mainland
China, including HK$10.6 billion (US$1.35 billion) of real estate
at the Sanshui district in Foshan city.
A source close to Hsin Chong said these projects have dried up the
company's liquidity and led it to pile on debt, SCMP.com relays.
Last August, the West Kowloon Cultural District Authority
cancelled Hsin Chong's HK$5.9 billion contract for the M+ museum
project, amid concerns over the developer's financial solvency,
SCMP.com recounts.
Hsin Chong last traded at 35 HK cents before its suspension on
April 3, 2017, giving it a market cap of HK$1.99 billion, SCMP.com
notes.
TONGLIAO CITY: Fitch Withdraws BB- LT IDR on Insufficient Info
--------------------------------------------------------------
Fitch Ratings has withdrawn Tongliao City Investment Group Co.,
Ltd.'s (TCIG) Long-Term Foreign- and Local-Currency Issuer Default
Ratings of 'BB-' with a Stable Outlook.
KEY RATING DRIVERS
Fitch is withdrawing the ratings as TCIG has chosen to stop
participating in the rating process. Therefore, Fitch will no
longer have sufficient information to maintain the ratings.
Accordingly, Fitch will no longer provide ratings (or analytical
coverage) for TCIG.
RATING SENSITIVITIES
Not relevant as the ratings have been withdrawn.
XINYI CITY: Fitch Affirms BB- LT IDR, Outlook Stable
----------------------------------------------------
Fitch Ratings has affirmed China-based Xinyi City Investment &
Development Co., Ltd.'s Long-Term Foreign- and Local-Currency
Issuer Default Ratings at 'BB-'. The Outlook is Stable. Fitch has
also affirmed the 'BB-' rating on the USD110 million 5.8% senior
unsecured notes due 2019 issued by Xingang International Holding
Limited.
XCID's ratings are assessed under Fitch's Government-Related
Entities Rating (GRE) Criteria, reflecting Xinyi City's full
ownership, strong control and support track record of the company.
Fitch has also factored in the strategic importance of XCID's to
the city as local leading urban developer. Local government
therefore has the incentive to support the company as its default
would have moderate socio-political and very strong financial
implications for the city.
The notes are unconditionally and irrevocably guaranteed by
Xingang International Investment Company Limited (XII), a wholly
owned subsidiary of XCID. XCID has granted a keepwell and
liquidity support deed and a deed of equity interest purchase
undertaking to ensure that XII has sufficient assets and liquidity
to meet its obligations under the guarantee for the notes.
XCID is the largest urban developer in Xinyi city of Jiangsu
province in China's eastern coastal area, engaged in
infrastructure construction, land development as well as water
supply.
KEY RATING DRIVERS
'Very Strong' Status, Ownership, Control: XCID is established as
state-owned limited liability company under Chinese company law.
Xinyi government maintains full ownership and exerts strong
control over the company through the Xinyi State-owned Assets
Supervision and Administration Commission (Xinyi SASAC), by
appointing senior management, approving major investment and
financing plan, and closely monitoring operating and financial
performance.
'Strong' Support Track Record, Expectation: XCID received
continuous and substantial cash and asset injections, as well as
regular operating subsidies from the government of the city.
Accumulated capital injections during 2014-2017 amounted to CNY3.8
billion, equivalent to 30% of 2017 shareholder equity. The annual
operating subsidy was around CNY300 million, or about 30% of
revenue for the year.
'Moderate' Socio-Political Implications of Default: XCID provides
wide range public services, including infrastructure development,
resettlement-housing construction, primary-land development and
water supply. However, Fitch assesses socio-political implication
of its default to be moderate as most services are conducted
through various subsidiaries, which would not be materially
affected by XCID default.
'Very Strong' Financial Implications: XCID is the largest GRE
under Xinyi SASAC's supervision, accounting for more than 60% of
the total assets of local GREs, and more than 60% of the city's
overall risk. Most of its debt is raised to finance local key
infrastructure projects that serve the public. Fitch believes a
default would severely damage the local government's reputation
and constrain its financing capability.
Weak 'B' Category Standalone Credit Profile: XCID's financial
profile has been characterised by large capex, negative free cash
flow and high leverage. Its Fitch-adjusted net debt to EBITDA
continued to rise to 39.4x by end-2017 from 24.1x at end-2016.
Fitch believes the company's standalone credit profile is
constrained by its public-service nature and subject to
refinancing risk due to the small scale of its sponsor's budget.
RATING SENSITIVITIES
A revision in Fitch's perception of Xinyi city's ability to
provide subsidies, grants or other legitimate resources allowed
under China's policies and regulations would lead to a change in
ratings.
Positive rating action may be triggered by a revised assessment of
the socio-political implications of a default, enhancing Xinyi
city's incentive to provide legitimate support. A downgrade may
result from a significant weakening of the assessment of the
socio-political and/or financial implications of a XCID default,
or the assessment of the city's support record, or a dilution of
the local government's shareholding.
An improvement or deterioration of XCID's standalone credit
profile or liquidity position would also affect the ratings.
A rating action on the company would also lead to similar action
on the rating of the US dollar notes.
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I N D I A
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AARTI INFRASTRUCTURE: Ind-Ra Moves BB Rating to Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Aarti
Infrastructure & Buildcon 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:
-- INR50 mil. Fund-based working capital limits migrated to non-
cooperating category with IND BB (ISSUER NOT COOPERATING)
rating; and
-- INR70 mil. Non-fund-based working capital limits migrated to
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
January 19, 2018. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Aarti Infrastructure & Buildcon is a real estate company.
AHZ INTERIOR: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: AHZ Interior Private Limited
103, Husaini Taheri CHSL
Church Road Fakhri Colony Near MBMC Office
Bhayandar West Thane
Maharashtra, PIN: 401101
Insolvency Commencement Date: December 10, 2018
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: June 8, 2019
Insolvency professional: Nagaraj U. Hiregange
Interim Resolution
Professional: Nagaraj U. Hiregange
L-601 6th Floor, L Wing
Panchsheel Garden J, K, L, M, N CHS Ltd
Gate no. 3, Panchsheel Enclave
Mahavir Nagar, Kandivali (W)
Mumbai 400067
E-mail: nhiregange@gmail.com
Last date for
submission of claims: January 18, 2019
ALBUS INDIA: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Albus India Limited
F. No. 22, Plot No. 29
Maitri Apartment, Sector-9
Rohini, New Delhi
North Delhi 110085
Insolvency Commencement Date: January 2, 2019
Court: National Company Law Tribunal, Delhi Bench
Estimated date of closure of
insolvency resolution process: June 30, 2019
(180 days from commencement)
Insolvency professional: Sandeep Kr Bhatt
Interim Resolution
Professional: Sandeep Kr Bhatt
83B, Pocket-4, Mayur Vihar, Phase-1
New Delhi 110091
E-mail: skbmica@gmail.com
Last date for
submission of claims: January 21, 2019
ANTONY ROAD: CARE Migrates B+ Rating to Not Cooperating
-------------------------------------------------------
CARE has been seeking information from Antony Road Transport
Solutions Private Limited (ARTS) to monitor the rating(s)
vide e-mail communications/letters dated October 23, 2018,
November 5, 2018, November 28, 2018, December 27, 2018
and numerous phone calls. However, despite CARE's repeated
requests, the company has not provided the requisite information
for monitoring the ratings. In the absence of minimum information
required for the purpose of rating, CARE is unable to express
opinion on the rating. In line with the extant SEBI guidelines
CARE's rating on ARTS's bank facilities will now be denoted as
CARE B+; ISSUER NOT COOPERATING.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 41.43 CARE B+; Stable; Issuer not
Facilities cooperating; Based on 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 take into account modest scale of operations, highly
leveraged capital structure albeit moderate debt coverage
indicators, risks associated with geographical & customer
concentration, project execution & funding associated to ongoing
fleet expansion, experienced promoters in public bus transport
services business coupled with strong group support from group
companies, exclusive agreement with Delhi transport authority,
high profit margins and comfortable operating cycle.
Detailed description of the key rating drivers
At the time of last rating on January 29, 2018, the following were
the rating strengths and weaknesses (updated from the latest
possible information received from the company):
Key Rating Weaknesses
Modest scale of operations albeit continuous & healthy growth over
last 3 years: The scale of operations of ARTS stood relatively
modest with the total operating income ranging from INR30-90 crore
over FY15-FY18 (refers to the period April 1 to March 31).
However, the same has been continuously improving at a healthy
rate of 40.55% CAGR over the same period owing to increase in
deployment of buses over the said period. However, given the
modest scale of operations, the tangible net-worth base also stood
modest.
Highly leveraged capital structure albeit moderate debt coverage
indicators: The capital structure of ARTS stood highly leveraged
with the overall gearing ranging from 3-7 times over FY15-FY18,
given the high reliance on external term debt for funding the
addition of buses in each year. However, given the significant
improvement in the profitability & cash accruals, the debt
coverage indicators improved and stood moderate in FY18.
Risks associated with geographical & customer concentration albeit
mitigated by absence of regional competition: ARTS is exposed to
significant geographical & customer concentration since its
operations are confined only to cluster no. 7 of New Delhi,
whereas the same cater to only single customer. Moreover, the
single-customer services coupled with terms & conditions of the
bid limit the flexibility of the company to negotiate on various
terms like payment, schedule, rates, etc. However, comfort can be
derived from the fact that the company is the sole provider of
public bus transport services in a specific region of the city.
Project execution & funding risks associated to ongoing fleet
expansion: ARTS faces significant project execution and funding
risk associated with ongoing fleet expansion. The company had been
an L1 bidder for the operations in a new cluster for over a decade
of tenure, for which DoT had floated the tender. The said capital
expenditure would require investments of over INR200 crore in
various buses.
Key Rating Strengths
Experienced promoters in public bus transport services business:
The overall operations of ARTS are looked after by Mr. Jimmy
Kallarakkal and Mr. Edison Thomas, who possess requisite
experience of over a decade in the public bus transport services
business.
Strong group support with group companies: ARTS shares operational
synergies with the Antony Group in terms of common management and
derives significant operational synergies with Antony Garages
Private Limited (AGPL) and Antony Commercial Vehicles Private
Limited (ACV). All the three companies are operated by the same
management, whereas the buses owned & deployed by ARTS are
supplied by ACV (being an authorized distributor for commercial
vehicles of Ashok Leyland Limited), whereas the body building of
which in turn is carried out by AGPL.
Exclusive agreement in place with Delhi transport authority for
providing public bus services in cluster no. 7 of New Delhi: AGPL
had successfully won the bidding contract from Department of
Transport, Delhi (DoT) to run the public bus transport services in
cluster no. 7 of New Delhi. With regard to this, ARTS has entered
into an agreement with DoT, under which it is bound to provide
buses and run them as a means of public road transport in cluster
no. 7 of New Delhi, as per the schedule provided by DoT. The
contract is valid for a period of 10 years (renewable up to 2
years) from the date the depot is provided by DoT. On the other
hand, the rates are fixed on the basis of consumable charge,
capital charge and manpower & overheads charge, which are linked
to the prevailing CPI (Consumer Price Index) rates.
High profit margins: The PBILDT margin of ARTS stood high in the
range of 25-35% over FY15-FY18, given the service nature of
operations. Given this, the PAT margin also stood comfortable in
the range of 4.50-7.50% over the same period.
Comfortable operating cycle: ARTS maintains an inventory of 1-2
days comprising spare parts of buses, used for occasional repairs
& maintenance. Moreover, the debtors are generally recovered in 10
days from the date of billing. On the other hand, the suppliers
(including those of oil & grease, fuel, spare parts, etc.) provide
a credit period of over 15-20 days. Led by this, the operating
cycle stood comfortable in the range of -16 to 7 days over FY15-
FY18.
Incorporated in 2010 by Mr. Jimmy Kallarakkal and Mr. Edison
Thomas, ARTS is engaged in providing public bus transport services
in cluster no. 7 of New Delhi. ARTS is an SPV (Special Purpose
Vehicle) incorporated by Antony Garages Private Limited (AGPL) so
as to operate the bid won by the latter on September 3, 2012, from
the Department of Transport, Delhi (DoT) to run the buses in
cluster no. 7 of New Delhi. With regard to this, ARTS has entered
into an agreement (valid for 10 years, renewable up to 2 years)
with DoT on June 20, 2013, under which it is bound to provide 328
buses (258 non-AC and 70 AC) (the buses are to be provided phase-
wise after the allocation of depot by DoT) including 30 as spares,
and run them as a means of public road transport, as per the
schedule provided by DoT.
ARTS belongs to the Antony Group, and is a subsidiary of AGPL
which is engaged in the body building of buses, tempos, trucks and
other commercial vehicles; and providing public bus transport
services in Pune. AGPL is an authorized body building manufacturer
for the commercial vehicles of Ashok Leyland. On the other hand,
Antony Commercial Vehicles Private Limited (ACV) is an authorized
distributor for the commercial vehicles of Ashok Leyland in Pune,
whereas Antony Motors Private Limited (AMPL) and Antony Waste
Handling Cell Private Limited (AWHC) are engaged in manufacturing
of waste & garbage carriage vehicles. ARTS shares operational
synergies with the Antony Group in terms of common management and
significant operational linkages with AGPL and ACV.
ARJUN ISPAT: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Arjun Ispat India Private Limited
Y-59, Loha Mandi Naraina
New Delhi DL 110028 IN
Insolvency Commencement Date: January 2, 2019
Court: National Company Law Tribunal, Jaipur Bench
Estimated date of closure of
insolvency resolution process: July 1, 2019
(180 days from commencement)
Insolvency professional: Mr. Rajneesh Singhvi
Interim Resolution
Professional: Mr. Rajneesh Singhvi
36A, Suraj Nagar (East)
Civil Lines, Jaipur
Rajasthan 302006
E-mail: rajneesha1@gmail.com
irparjunispat@gmail.com
Last date for
submission of claims: January 16, 2019
B J HOTELS: CARE Lowers Rating on INR6.12cr LT Loan to D
--------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
B J Hotels Private Limited (BJHPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 6.12 CARE D; Issuer not cooperating;
Facilities Revised from CARE B+; Stable
Based on best available
information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from BJHPL to monitor the
rating(s) vide e-mail communications/letters dated December 2,
2018, November 14, 2018, November 6, 2018, November 2, 2018 and
Oct. 10, 2018 and numerous phone calls. However, despite CARE's
repeated requests, the company has not provided the requisite
information for monitoring the ratings. In the absence of minimum
information required for the purpose of rating, CARE is unable to
express opinion on 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 a fair rating. The rating on B J
Hotels Private Limited 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 ratings.
The ratings have been revised on account of the ongoing delays in
the repayment of debt obligations.
Detailed description of the key rating drivers
At the time of last rating on Oct. 30, 2017, the following were
the rating strengths and weaknesses (updated from the latest
possible information received from the banker):
Key Rating Weakness
Delays in debt servicing: As per interaction with banker, BJHPL
has been delaying in the repayment of the debt obligation for 7 to
8 days in the month of Dec 2018.
B.J.Hotels Private Limited (BJHPL) was incorporated in 1971, as a
private limited company, by Mr. Mr. Gurindersingh P. Bawa and Mr.
Karanveersingh G. Bawa. BJHPL has developed hotel in Khar Mumbai
under the name of "Hotel Bawa Suites" with room inventory of 26
rooms comprising of 7 floors plus 6 shops on ground floor and
basement which are given on rent to Airtel, Viom Network Limited,
Indus, Zodiac, Vijaydeep Hotels Pvt Ltd and IOSIS Spa and
Wellness. From FY15 entire hotel business was transferred to one
of its group company namely Vijaydeep Hotels Private Limited and
now BJHPL earns only rental income from the shops on the ground
floor and basement from companies namely Airtel, Viom Network
Limited, Indus, Zodiac and others. The group is into hospitality
industry for more than 3 decades and has established boutique
properties in Mumbai namely, Hotel Bawa International, Hotel Bawa
Continental, Hotel Bawa Suites and Hotel Bawa Regency.
BHARATI DEFENCE: NCLT Rejects Edelweiss Bid; Orders Liquidation
---------------------------------------------------------------
LiveMint.com reports that the National Company Law Tribunal (NCLT)
has ordered the liquidation of Bharati Defence & Infrastructure
Ltd, rejecting a resolution plan of Edelweiss Asset Reconstruction
Co. Ltd. In its January 14 order, the Mumbai bench of NCLT said
Edelweiss did not give a practical and viable plan to manage the
affairs of Bharati Defence.
According to LiveMint.com, the order said Edelweiss' resolution
plan proposed to pay INR9 crore to operational creditors against
dues of INR187 crore. Also, they would be paid in a phased manner,
and the new management would decide the sum and period of settling
dues for each operational creditor. Alongside, Edelweiss proposed
to pay INR1,124 crore in a phased manner to financial creditors to
which it owes INR11,373.4 crore, implying a discount of 90%.
Edelweiss, which had acquired Bharati Defence's loans from
lenders, now holds 83% voting rights in its committee of creditors
(CoC), the report notes. In 2017, the ARC had referred Bharati to
the bankruptcy court. Around 95% of lenders backed the Edelweiss
resolution plan, the report says.
LiveMint.com relates that the NCLT order also noted the Edelweiss
plan proposes INR35 crore as insolvency resolution process costs
before repaying other debt.
"During the hearing, the bench also expressed its concern over the
huge fee charged by the RP and his team of few people, even though
the company has a huge workforce. It is noted that monthly fee
charged by RP and his team is approximately INR80 lakh whereas
monthly salary bill of around 850 staff is INR1.5 crore, which
indicates a huge fee to RP and his team," the order, as cited by
LiveMint.com, said.
As per the resolution plan, the insolvency cost was projected at
INR35 crore, whereas as per submission to the tribunal, it is
approximately INR62 crore as of August 2018, LiveMint.com notes.
"Considering the national importance attached to product line of
the firm, the customers, explicitly ministry of defence, Indian
Coastguard, Customs etc., order book size, advances paid by
government departments, the work in progress stalled at various
stages of production and huge number of workforce (around 850
employees), we direct that the liquidator shall endeavour to sell
the corporate debtor company as going concern," said the division
bench presided by judicial member V.P. Singh and technical member
Ravikumar Duraiswami, LiveMint.com adds.
Bharati Defence and Infrastructure Limited, formerly Bharati
Shipyard Limited (BOM:532609) is engaged in the business of naval
architecture, marine engineering and ocean engineering. The
Company is also engaged in building various types of ships and
other vessels, (both with and without power), build drilling
rigs, fabricating offshore platform and other Offshore and other
structures, earth moving machinery, and all platforms and
equipment required for defense purpose. The Company operates in
Ship Manufacture segment. It is also engaged in building a Mobile
Offshore Drilling Unit capable of operating in approximately 350
feet of water. This Rig can be elevated to a height of
approximately 418 feet, and has an electric rack and pinion
system of jack up, as well as derrick skidding system. It has a
cantilever cover of 70 feet beyond the transom and drill floor
movement of approximately 30 feet side to side. It offers Self
Propelled Moduler Transport System and Computer Numeric Control
machines.
BLUEFERN VENTURES: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Bluefern Ventures Private Limited
Ethanpa Villa, Dathang Road
Namchi Bazar, Namchi, South Sikim
Insolvency Commencement Date: December 21, 2018
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: June 19, 2019
Insolvency professional: Hrisikesh Dasgupta
Interim Resolution
Professional: Hrisikesh Dasgupta
AV Insolvency Professionals Pvt. Ltd.
Bajarang Kunj, Room No. 412 & 413
2B, Grant Lane, 4th Floor
Kolkata 700012
E-mail: hkdaspt@gmail.com
cirp.bluefern@gmail.com
Last date for
submission of claims: January 14, 2019
GE GODAVARY: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: GE Godavary Engineering Limited
Plot No. 136 and 137, M No. Nil
Maitrinagar, Phase 2
Road No. 3, Miyapur
Landmark Nr. Reliance Fresh
Hyderabad 500049
Insolvency Commencement Date: January 4, 2019
Court: National Company Law Tribunal, Hyderabad Bench
Estimated date of closure of
insolvency resolution process: July 3, 2019
Insolvency professional: Mr. Kedar Ramratan Laddha
Interim Resolution
Professional: Mr. Kedar Ramratan Laddha
501 Shajanand Shopping Centres
Shahibaug, Ahmadabad
Gujarat 380004
E-mail: ip@kpsjca.com
kladdha@kpsjca.com
- and -
B-1002 ? Mondeal Square
Nr. Prahladnagar Garden
SG Highway
Ahmedabad 380015
Last date for
submission of claims: January 18, 2019
HARIOM COTGIN: CRISIL Maintains D Rating in Not Cooperating
-----------------------------------------------------------
CRISIL has been consistently following up with Hariom Cotgin
Private Limited (HCPL) for obtaining information through letters
and emails dated June 28, 2018 and December 10, 2018 among others,
apart from telephonic communication. However, the issuer has
remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8 CRISIL D (ISSUER NOT COOPERATING)
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of HCPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on HCPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of HCPL continues to be 'CRISIL D Issuer not
cooperating'.
Furthermore, the company has not paid the fee for conducting
rating surveillance as agreed to in the rating agreement.
HCPL, incorporated in 2008 by Mr. Ramesh, gins cotton, and presses
and processes cotton seed into oil and cakes. In October 2015, it
was taken over by Mr. Bharatbhain Selani and Mr. Chiragbhai
Selani, who have been in the cotton ginning and pressing business
for five decades.
HI-TECH RADIATORS: Ind-Ra Migrates BB+ Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Hi-Tech Radiators
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:
-- INR184 mil. Long-term loans# migrated to non-cooperating
category with IND BB+ (ISSUER NOT COOPERATING) rating;
-- INR118.9 mil. Cash credit limits migrated to non-cooperating
category with IND BB+ (ISSUER NOT COOPERATING) rating;
-- INR20 mil. Proposed cash credit limits migrated to non-
cooperating category with Provisional INDBB+ (ISSUER NOT
COOPERATING)/Provisional IND A4+ (ISSUER NOT COOPERATING)
rating;
-- INR40 mil. Usance bills discounted under letter of credit
migrated to non-cooperating category with IND BB+ (ISSUER
NOT COOPERATING) rating;
-- INR140 mil. Letter of credit migrated to non-cooperating
category with IND A4+ (ISSUER NOT COOPERATING) rating; and
-- INR40 mil. Proposed letter of credit migrated to non-
cooperating category with Provisional IND A4+ (ISSUER NOT
COOPERATING) rating.
#Details provided in the Annexure
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
January 25, 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 1989, Hi-Tech Radiators manufactures corrugated
tanks and fin-type radiators for power and distribution
transformers at its two plants in Rabale (Navi Mumbai) and Khopoli
(Raigad). It has a total monthly manufacturing capacity of 1,200
metric tons.
IDEAL PRINTOGRAPHICS: Insolvency Resolution Process Case Summary
----------------------------------------------------------------
Debtor: Ideal Printographics Private Limited
Registered Office as per MCA:
29, Second Floor, Centre Market
Punjabi Bagh, West New Delhi 110059
Insolvency Commencement Date: December 17, 2018
Court: National Company Law Tribunal, New Delhi Bench-II
Estimated date of closure of
insolvency resolution process: June 15, 2019
Insolvency professional: Rajesh Kumar Parakh
Interim Resolution
Professional: Rajesh Kumar Parakh
5/51, Second Floor, W.E.A. Karol Bagh
New Delhi 110005
E-mail: parakh.rajesh@gmail.com
irp.paramount@gmail.com
Last date for
submission of claims: January 18, 2019
IL&FS GROUP: May Appoint Forensic Auditor to Look into Books
------------------------------------------------------------
The Hindu BusinessLine reports that the newly appointed Board of
IL&FS is toying with the idea of appointing a forensic auditor to
look into the books of the IL&FS Group and its subsidiaries for
the past five years so as to ascertain the nature and quantum of
financial mismanagement.
Grant Thornton, a professional services firm, is a frontrunner and
may soon bag this mandate, sources said, the report relates.
Meanwhile, the Central Council of the CA Institute is not in favor
of allowing its research arm Accounting Research Foundation (ICAI
ARF) to take up the task of reopening the books of accounts of
IL&FS and two of its subsidiaries -- IL&FS Transportation Network
and IL&FS Financial Services -- for the past five years, according
to the Hindu BusinessLine.
ICAI ARF was sounded out on this, but the CA Institute is not in
favour because of a legal hitch as the Companies Act stipulated
that only a firm of chartered accountants can reopen the books,
sources added, the Hindu BusinessLine relays.
The Mumbai bench of National Company Law Tribunal (NCLT) had early
this year allowed the Government to reopen and recast the accounts
of IL&FS and two of its subsidiaries -- IL&FS Transportation
Network Ltd and IL&FS Financial Services -- for the past five
years, the Hindu BusinessLine recounts.
IL&FS had accumulated a debt of more than INR91,000 crore and
defaulted on some of its commitments, the report notes.
About IL& FS
Infrastructure Leasing & Financial Services Limited (IL&FS)
operates as an infrastructure development and finance company in
India. It focuses on the development and commercialization of
infrastructure projects, and creation of value added financial
services. The company operates in Financial Services,
Infrastructure Services, and Others segments. Its Financial
Services segment engages in the commercialization of
infrastructure; investment banking, including corporate finance,
advisory, capital market, and other financial services; and
securities trading, venture capital, and trusteeship operations.
As reported in the Troubled Company Reporter-Asia Pacific on
Oct. 3, 2018, the Indian Express said that the government on
Oct. 1 stepped in to take control of crisis-ridden IL&FS by
moving the National Company Law Tribunal (NCLT) to supersede and
reconstitute the board of the firm which has defaulted on a
series of its debt payments. This was said to be an attempt to
restore the confidence of financial markets in the credibility and
solvency of the infrastructure financing and development group.
INDRA TUBES: CRISIL Maintains B+ Rating in Not Cooperating
----------------------------------------------------------
CRISIL has been consistently following up with Indra Tubes Private
Limited (ITPL) for obtaining information through letters and
emails dated June 28, 2018 and December 10, 2018 among others,
apart from telephonic communication. However, the issuer has
remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Proposed Cash
Credit Limit 3.0 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of ITPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on ITPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of ITPL continues to be 'CRISIL B+/Stable Issuer not
cooperating'.
ITPL is a Ghaziabad-based company, promoted since 2009 by Mr.
Sharad Gupta and his wife Ms. Sheetal Gupta. The company trades in
mild steel pipes, galvanised iron pipes and fittings, and
Polyvinyl Chloride (PVC) pipes and fittings through wholesalers
and dealers in National Capital Region and Uttrakhand.
J G FOUNDRY: CRISIL Maintains B+ Rating in Not Cooperating
----------------------------------------------------------
CRISIL has been consistently following up with J G Foundry Limited
(JGFL) for obtaining information through letters and emails dated
June 28, 2018 and December 10, 2018 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of JGFL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on JGFL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of JGFL continues to be 'CRISIL B+/Stable Issuer not
cooperating'.
Furthermore, the company has not paid the fee for conducting
rating surveillance as agreed to in the rating agreement.
Incorporated in 1991 and based in Patna (Bihar) JGFL manufactures
steel ingots. Mr Girja Shankar Prasad manages the operations.
JHARKHAND ROAD: Ind-Ra Lowers Rating on INR17.30BB Loan to 'D'
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded the rating on
Jharkhand Road Projects Implementation Company Limited's (JRPICL)
non-convertible debentures (NCDs) while resolving the Rating Watch
Negative (RWN) as follows:
-- INR17.300 bil. (outstanding INR16,284.40 bil.) Senior,
secured, redeemable NCDs (long-term)* downgraded; Off RWN
with IND D (SO) rating.
* Details in annexure
KEY RATING DRIVERS
The downgrade reflects JRPICL's default on the payment of
redemption of NCDs due on January 21, 2019 to debenture holders,
despite availability of sufficient cash. The debenture trustee on
an instruction received from the debenture holders had directed
the escrow bank to process the payment on the due date. According
to the trustee communication to Ind-Ra, the escrow bank did not
process the payment and the interest/principal payment was not
made to the debenture holders on the due date. The rating action
is in line with the Securities and Exchange Board of India
regulations which direct credit rating agencies to recognize
defaults on the 'one day one rupee' principle.
Ind Ra in its commentary "IL&FS SPVs' Interpretation of NCLAT
Ruling Places Project Financing Structure at Risk in India", dated
January 15, 2019, had provided an update on the same and
highlighted the potential risk of the rating being downgraded to
'IND D'.
As on January 14, 2019, JRPICL had adequate cash of INR2.21
billion in debt service reserve account against a stipulation of
INR2.11 billion and INR1.09 billion in major maintenance reserve
account against a stipulation of INR1.03 billion, and surplus cash
of INR1.28 billion.
RATING SENSITIVITIES
Positive: Timely debt servicing for at least three consecutive
months could result in a positive rating action.
COMPANY PROFILE
In 2007, the government of Jharkhand (GoJ) launched Jharkhand
Accelerated Road Development Programme under a public-private
partnership framework. In February 2008, the GoJ and
Infrastructure Leasing & Financial Services Limited (IL&FS; 'IND
D') signed a programme development agreement to improve 1,500 lane
km of selected project road corridors. The programme is being
implemented by Jharkhand Accelerated Road Development Company Ltd.
JRPICL, which is 6.57%-owned by IL&FS and 93.43%-owned by its
subsidiary IL&FS Transportation Networks Limited (ITNL; 'IND D'),
has undertaken and implemented five projects totalling 627 lane
km: Ranchi Ring Road (sections III, IV, V and VI), Ranchi Patratu
Dam, Patratu Dam Ramgarh, Adityapur Kandra and Chaibasa Kandra
Chowka Road. All these projects have separate concession
agreements with the GoJ, along with separate escrow accounts.
JONAS WOODHEAD: CARE Assigns B+ Rating to INR7.05cr LT Loan
-----------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Jonas
Woodhead and Sons India Limited (JWSIL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 7.05 CARE B+; Stable Assigned
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of JWSIL is primarily
tempered by small scale of operations with fluctuating total
operating income, leveraged capital structure, working capital
intensive nature of operations and exposure to volatile raw
material prices. However, the rating derives comfort from
established track record of operations and vast experience of the
management team, satisfactory profitability margins and
satisfactory debt-coverage indicators.
Going forward, the company's ability to improve its scale of
operations, improve its profitability, efficiently utilize its
working capital requirements are the key rating sensitivities.
Detailed description of the key rating drivers
Key Rating Weaknesses
Small scale of operation with fluctuating total operating income:
JWSIL's scale of operation stood small marked by total operating
income of INR12.25 crore in FY18 as against INR14.81 crore in FY17
and was found to be fluctuating during the review period. The
company reported tangible net-worth of INR1.09 crore as of
March 31, 2018.
Leveraged capital structure: The debt profile of the company
comprises a significant portion of loans and advances from the
promoter group which are interest free and was used towards
capital expenditure. The capital structure of the company marked
by overall gearing improved yet stood leveraged at 18.06x as of
March 31, 2018 as compared to 28.02x as of March 31, 2017.
Leveraged capital structure of the company was on account of long-
term unsecured-loan from promoter group.
Working capital intensive nature of operations: Higher operating
cycle days was mainly due to higher average inventory period days
on account of high inventory of finished goods as of balance sheet
date. Since the company has four sales branches at various
locations it needs to stock manufactured goods to meet customer
requirements. Apart from that, the company is required to maintain
sufficient raw material, stores and spares to meet production
requirements. On account of elongated inventory period, the
average working capital cycle stood at 253 days for FY18 as
against 192 days for FY17. However, the company had utilized it
working capital facility up to 45-50% on an average during the 12
months ended November 2018. The company also uses unsecured loans
for its working capital requirements.
Exposure to volatile raw material prices: The volatility in steel
prices driven by demand and supply conditions in the global as
well as local markets exposes the company to any adverse price
movement on raw material inventory as well as finished goods
inventory.
Key Rating Strengths
Established track record of operations and vast experience of the
management team: The company was incorporated in 1963 and has been
operational for more than five decades. It is currently being
managed by Mr. Naresh P. Modi, Chairman who has experience of
nearly four decades and Mr. Abhishek Modi, Managing Director. They
look after the overall business operations of the company and are
supported by a second-tier management team, which is comprised of
members having requisite experience in their respective fields.
Satisfactory profitability margins: The PBILDT margin of the
company has been satisfactory and increasing year-on-year. The
company was able to improve its profit margins year-on-year which
stood at 17.09% in FY18. Furthermore, on account of technicality
associated with the nature of work undertaken, the business is
characterised by moderate to high entry barrier and relatively low
competition leading to healthy profit margins for the company. The
PAT margin also increased year-on-year and stood at 3.24% in FY18
due to increasing operating profit during review period resulting
in absorption of financial expenses and depreciation provisions.
Satisfactory debt-coverage indicators: The debt-coverage
indicators marked by TD/GCA stood at 14.23x in FY18 as against
13.69x in FY17. Although TD/GCA stood high it was mainly on
account of unsecured borrowings from the promoter group, which are
interest free. Due to interest free loans borrowed from promoters
group, the interest obligations stands low for the company.
Therefore, the interest coverage also stood satisfactory in FY18
at 4.68x although marginally declined from 4.71x in FY17.
Healthy outlook for auto components industry: The Indian auto-
components industry has experienced healthy growth over the last
few years. The auto-component industry of India has expanded by
18.3 per cent to reach at a level of US$ 51.2 billion in FY 2017-
18. The auto-components industry accounts for 2.3 per cent of
India's Gross Domestic Product (GDP) and employs as many as 1.5
million people directly and indirectly each. A stable government
framework, increased purchasing power, large domestic market, and
an ever increasing development in infrastructure have made India a
favorable destination for investment.
Liquidity Analysis: The company had total cash and bank balance
amounting to INR0.62 crore and current investment of INR0.40 crore
as on March 31, 2018. The current ratio and quick ratio stood
satisfactory at 2.20x and 1.32x respectively as of March 31, 2018.
On an average, the company's unutilized fund based limits amounted
to INR1.50 crore during the last 12 months ended
December 2018.
Jonas Woodhead And Sons India Limited (JWSIL) was established in
1963, engaged in manufacture parabolic & leaf spring and spring
assemblies. The manufactured components are being supplied to
OEM's (Heavy and light commercial vehicles) dealers and
distributors. The company has its registered office and plant
location in Chennai and has four sales office in Madurai,
Bangalore, Calicut and Vijayawada.
KIZHAKKEBHAGATHU RICE: CRISIL Keeps C Rating in Not Cooperating
---------------------------------------------------------------
CRISIL has been consistently following up with Kizhakkebhagathu
Rice Mills (KRM) for obtaining information through letters and
emails dated June 28, 2018 and December 10, 2018 among others,
apart from telephonic communication. However, the issuer has
remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Open Cash Credit 6 CRISIL C (ISSUER NOT
COOPERATING)
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of KRM, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on KRM is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of KRM continues to be 'CRISIL C Issuer not
cooperating'.
Set up in 1997, KRM mills and processes paddy into rice, rice
bran, broken rice and husk. It has an installed paddy milling
capacity of 5 tonnes per hour (tph). Its rice mill is located at
Muvattupuzha, Kerala. Its operations are managed by Mr. Dinu
Kurien.
MANIS OILS: Insolvency Resolution Process Case Summary
------------------------------------------------------
Debtor: Mansi Oils & Grains Pvt Ltd
P-36 India Exchange Place
3rd Floor, Room no. 48C
Kolkata 700001
Insolvency Commencement Date: January 1, 2019
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: June 29, 2019
Insolvency professional: Rachna Jhunjhunwala
Interim Resolution
Professional: Rachna Jhunjhunwala
Vikram Vihar, BK-H
493/B/18 G.T. Road
Howrah 711102
E-mail: jsa.jhunjhunwala@gmail.com
- and -
Siddha Weston, 9 Weston Street
Suite no. 134, 1st Floor
Kolkata 700013
E-mail: cirp.mansi@gmail.com
Last date for
submission of claims: January 14, 2019
MAXOUT INFRASTRUCTURES: CRISIL Keeps D Rating in Not Cooperating
----------------------------------------------------------------
CRISIL has been consistently following up with Maxout
Infrastructures Private Limited (MIPL) for obtaining information
through letters and emails dated June 28, 2018 and December 10,
2018 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 12 CRISIL D (ISSUER NOT COOPERATING)
Cash Credit 8 CRISIL D (ISSUER NOT COOPERATING)
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on MIPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of MIPL continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
MIPL, incorporated in 2007, undertakes railway projects, and
develops roads, bridges, sewage water treatment plants, waste and
waste water treatment plants and works, mainly in North India. The
company is promoted and managed by Mr. Pramod Kumar Singh and his
brother Mr. Praveen Kumar Singh.
MEGHA GUM: CRISIL Maintains D Rating in Not Cooperating
-------------------------------------------------------
CRISIL has been consistently following up with Megha Gum and
Chemicals (MGC) for obtaining information through letters and
emails dated June 28, 2018 and December 10, 2018 among others,
apart from telephonic communication. However, the issuer has
remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 15 CRISIL D (ISSUER NOT COOPERATING)
Term Loan 3 CRISIL D (ISSUER NOT COOPERATING)
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MGC, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on MGC is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of MGC continues to be 'CRISIL D Issuer not
cooperating'.
Set up as a proprietorship firm by Ms. Urmila Goyal, MGC commenced
operations in 2005 by setting up a guar gum refining unit in
Hisar, Haryana. Its cotton ginning and cotton oil refining unit
began operations in November 2012. MGC is managed by Mr. Rajinder
Goyal and Mr. Anuj Goyal.
MONNET ISPAT: IFCI Moves NCLAT Against AION-JSW Resolution Plan
---------------------------------------------------------------
Livemint.com reports that IFCI Ltd, the erstwhile Industrial
Finance Corp. of India, has challenged the AION Capital-JSW Steel
Ltd resolution plan for Monnet Ispat and Energy Ltd, which treats
IFCI's secured loan as unsecured debt, before the National Company
Law Appellate Tribunal (NCLAT). Last April, Monnet Ispat's
committee of creditors (CoC) had approved the resolution plan to
revive the distressed steel manufacturer, the report says.
Subsequently, the resolution professional (RP) had submitted the
AION-JSW resolution plan to the National Company Law Tribunal
(NCLT) for approval, Livemint.com relates. In July 2018, the
tribunal had approved the INR2,875-crore plan by the AION-JSW
Steel consortium, which was the sole bidder for the assets.
Monnet Ispat's debt stood at INR11,000 crore, the report says.
"One of the grounds taken by the appellant is that the resolution
plan discriminates between Monnet Ispat's financial creditors and,
thereby, is against the ratio laid down by this appellate tribunal
in the Binani Industries Ltd vs Bank of Baroda case," said the
division bench of justices S.J. Mukhopadhaya and Bansi Lal Bhat in
its ruling on January 10, Livemint.com relays. Monnet Ispat owes
around INR158 crore to IFCI.
In the Binani Industries case, while striking down the resolution
plan submitted by Dalmia Bharat Pvt. Ltd-owned Rajputana
Properties Pvt. Ltd, the NCLAT had ruled that discriminating
between different categories of financial creditors is unlawful,
says Livemint.com.
According to Livemint.com, the NCLAT has directed the resolution
applicants (AION-JSW) to either modify the financial matrix of the
resolution plan or to argue on its legality at the next hearing.
It will next hear the matter on January 29.
Livemint.com says the AION-JSW Steel consortium has also sought
the appellate tribunal's permission to hear their side of the
argument.
"The issue arises out of the fact that the plan has prescribed
different treatment to different categories of financial
creditors, between secured and unsecured financial creditors, and
also treats IFCI's secured debt as an unsecured debt," argued IFCI
lawyers in the court, Livemint.com relays.
N.P.S. Chawla, associate partner of law firm Vaish Associates,
which is representing IFCI in the NCLAT, confirmed the
development, but refused to divulge further details since the
matter is subjudice, Livemint.com notes.
Bharat Heavy Enterprises Ltd (BHEL) has also approached the NCLAT
challenging the CoC's decision, arguing that it has assigned nil
liquidation value to its operational dues, the report adds.
Monnet Ispat is among the major stressed assets from the so-called
first list of the Reserve Bank of India (RBI), which were taken up
under the resolution process.
About Monnet Ispat
Monnet Ispat and Energy Limited is a holding company. The Company
is engaged in the business of conducting coal mining operations
and manufacturing coal-based sponge iron and various other
steel/iron-based products. The Company operates through three
segments: Iron & Steel, Power and Others. Its principal products
and services include steel and power. It has an integrated steel
plant at Raigarh that has a production capacity of 1.5 million
tons per annum (MTPA) to produce hot rolled (HR) plates, rebars
and structure profiles to cater to the infrastructure and
construction industry. The Company has coal blocks, such as Gare
Palma IV/5, Utkal B2, Urtan North, Raigmar dipside block and
Mandakini. It is also engaged in producing ferro-alloys, which
includes vital alloys, such as Ferro Manganese (Fe-Mn) and
Silico-Manganese (Si-Mn). These are supplied in diverse shapes
and forms from billets and ingots to powders, fillers and allied
reinforcements.
Monnet Ispat was one the 12 companies identified by the Reserve
Bank of India for action under the Insolvency and Bankruptcy Code
(IBC).
As reported in the Troubled Company Reporter-Asia Pacific on
April 11, 2018, BloombergQuint said Monnet Ispat's committee of
creditors on April 10 approved a resolution plan submitted by a
joint venture between AION Investments Pvt Ltd and JSW Steel Ltd.
The plan was approved by lenders with a 98.97 percent majority.
The bid will now be placed before the National Company Law
Tribunal for final approval, before being implemented.
On Feb. 27, BloombergQuint had reported that the JSW-AION
consortium had made a INR3,700 crore offer for Monnet Ispat. Of
this, INR2,650 crore were to be used to repay lenders against
admitted claims worth INR10,000 crore. That would mean that the
financial creditors would take a 76 percent haircut on their
exposure.
N. E. AGENCY: CRISIL Maintains B+ Rating in Not Cooperating
-----------------------------------------------------------
CRISIL has been consistently following up with N. E. Agency (NEA)
for obtaining information through letters and emails dated
June 28, 2018 and December 10, 2018 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1.65 CRISIL A4 (ISSUER NOT
COOPERATING)
Cash Credit 5.00 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Proposed Short 0.35 CRISIL A4 (ISSUER NOT
Term Bank Loan COOPERATING)
Facility
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of NEA, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on NEA is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of NEA continues to be 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating'.
NEA, a sole proprietorship firm of Ms. Nabam Yani, undertakes
civil construction work (primarily buildings) for government
departments and public sector entities in Arunachal Pradesh.
NUDDEA PLANTATIONS: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: Nuddea Plantations Limited
Regional office:
Totapara Tea Estate Banarhat
Jalpaiguri, Jalpaiguri 735202
West Bengal
Insolvency Commencement Date: January 4, 2019
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: July 2, 2019
Insolvency professional: Chhedi Rajbhar
Interim Resolution
Professional: Chhedi Rajbhar
40, Strand Road, Model House
2nd Floor, Room No. 49
Kolkata 700001
E-mail: crajbharco.ca@gmail.com
npl.cirp@gmail.com
Last date for
submission of claims: January 17, 2019
OSHINA EXPO: CARE Assigns B+ Rating to INR5cr LT Loan
-----------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Oshina
Expo Private Limited (OEPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank
Facilities 5.00 CARE B+; Stable Assigned
Short term Bank
Facilities 1.00 CARE A4 Assigned
Detailed Rationale & Key Rating Drivers
The ratings assigned to the bank facilities of OEPL are
constrained by modest scale of operation and moderate profit
margin, highly leveraged capital structure and weak debt coverage
indicators, working capital intensive nature of operations,
susceptibility of profit margins due to volatile material prices
and presence in competitive and fragmented industry. The ratings
however, derive strength from experienced promoters in the
industry coupled with presence in various northern states of
India.
Ability of OEPL to increase its scale of operations while
improving its profitability amidst intense competition and
improvement in capital structure along with efficient management
of its working capital requirement remain the key rating
sensitivity.
Detailed description of Key rating drivers
Key Rating Weaknesses
Modest scale of operations and moderate profit margin: Total
operating income of the company remained modest during past four
years ending FY18. Further total operating income (TOI) of the
company moderated to INR92.34 crore (vis-Ö-vis INR94.26 crore in
FY17) due to lower orders received due to reduced demand. OEPL has
achieved total operating income of INR84 crore till in 8MFY19.
Tangible net worth of the company also stood small at INR2.44
crore due to low capitalization during past which further limits
the financial flexibility of the company to the extent. As trading
being the major activity, the operating profit margin of company
has been low (in the range of 2.33% to 2.73% during FY15-FY18).
However it improved marginally to 2.73% in FY18 from 2.33% in FY17
mainly on account of lower traded goods purchased cost in FY18.
However net profit margin declined to 0.42% in FY18 from 0.54% in
FY17 on account of increase in depreciation cost in FY18 (due to
addition of fixed assets amounting to INR0.98 crore in FY18).
Highly leveraged capital structure and weak debt coverage
indicators: Capital structure of the company remained highly
leveraged during past four balance sheet dates ended March 31,
2018 on account of high debt level and low net worth base. Further
overall gearing of the company improved to 4.18x as on March 31,
2018 from 5.31x as on March 31, 2017 on account of accretion of
profit to capital and reduced debt level due to repayment of
unsecured loan and lower utilization of working capital limit as
on March 31, 2018, nevertheless it continues to remain leveraged.
The debt coverage indicators also remained weak however improved
with total debt to gross cash accruals at 9.01x in FY18 vis-Ö-vis
12.23x in FY17 due to increase in gross cash accruals and reduced
debt level. Interest coverage ratio also improved to 2.33x in FY18
from 1.97x in FY17 due to lower interest cost.
Working capital intensive nature of operations: Operations of OEPL
are working capital intensive mainly on account of funds being
blocked in inventory (average inventory period is 25 days) as
company has to maintain raw material inventory to execute the
orders in timely manner and receivables (avg. collection period is
86 days) as company offers credit period of around two months.
Further on the other hand it makes payment within two months which
led to average creditors' period of 75 days. All taken
collectively, operations of the company remains working capital
intensive leads to 75-80% utilization of its working capital limit
(INR5.00 crore) for past twelve months ended November 2018.
Moderate liquidity position: Liquidity position stood moderate
with current ratio of 1.11x as on March 31, 2018 and quick ratio
of 0.86x in FY18. Further free cash and bank balance remained low
at INR0.09 crore as on March 31, 2018 vis-Ö-vis INR0.80 crore as
on March 31, 2017; however net cash flow from operating activity
remains positive at INR2.10 crore as on March 31, 2018, vis-Ö-vis
INR2.17 crore as on March 31, 2017.
Susceptibility of profit margins due to volatile material prices:
The material is the major cost driver (constituting about 85% of
total cost of sales in FY18) and the prices of the same are
volatile in nature therefore cost base remains exposed to any
adverse price fluctuations in the prices of the footwear. Footwear
being major cost components amongst all materials is volatile in
nature. Accordingly, the profitability margins of the company are
susceptible to fluctuation in raw material prices. With limited
ability to pass on the increase in material costs in a competitive
operating spectrum, any substantial increase in raw material costs
would affect the company's profitability.
Presence in competitive and fragmented industry: Company operates
in a highly competitive and fragmented valve industry. The company
witnesses intense competition from both the other organized and
unorganized players domestically. This fragmented and highly
competitive industry results into price competition thereby posing
a threat to the profit margins of the companies operating in the
industry.
Key rating Strengths
Experienced promoters in the industry coupled with presence in
various northern states of India: OEPL is managed by Samit Jain
and Mrs. Suchitra Jain who have rich experience for more than a
decade in the industry. All the promoters are assisted by
experienced management team in the field of accounts, sales and
production to carry out day-to-day operations. Company has a
marketing setup and regional presence in the unorganized market in
Northern states with some of the major group brands being "Ektta",
"Tucson", "Nicholas" and "Prozone".
Oshina Expo Private Limited (OEPL) was established as a
proprietorship concern in 2002 by Mr Samit Jain and his family
and the firm was converted in 2012 into a private limited company.
OEPL is engaged in the business of trading (constitutes 95% of
total sales) and manufacturing (constitutes 5% of total sales) of
footwear such as shoes, sandals and slippers, etc. for both men
and women. The manufacturing facility of the firm is located in
Sahibabad, Uttar Pradesh. OEPL has regional presence in the
unorganized market in Northern states with some of the major group
brands being "Ektta", "Tucson", "Nicholas" and "Prozone".
OZONE INFRA: CARE Migrates D Rating to Not Cooperating Category
---------------------------------------------------------------
CARE has been seeking information from Ozone Infra Projects (OIP)
to monitor the rating(s) vide e-mail communications/letters dated
October 20, 2018, December 24, 2018, January 2, 2019 and numerous
phone calls. However, despite CARE's repeated requests, the firm
has not provided the requisite information for monitoring the
ratings. In the absence of minimum information required for the
purpose of rating, CARE is unable to express opinion on the
rating. In line with the extant SEBI guidelines CARE's rating on
OIP's bank facilities will now be denoted as CARE D; ISSUER NOT
COOPERATING.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 6.00 CARE D; Issuer not cooperating;
Facilities Based on 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 take into account the ongoing delays/default in debt
servicing obligations, since the cash credit facility of has been
continuously overdrawn by INR0.16 crore since March 31, 2018 owing
to liquidity crunch.
Detailed description of the key rating drivers
At the time of last rating on June 19, 2018, the following were
the rating strengths and weaknesses (updated from the
latest possible information received from the banker):
Key Rating Weaknesses
Default in debt servicing: As per the interaction with the banker,
the cash credit facility of OIP has been continuously overdrawn by
INR0.16 crore since March 31, 2018 owing to liquidity crunch. In
view of this, the account has been classified as NPA by the bank
with effect from September 30, 2018.
Established as a partnership firm in April 2008 and currently
managed by Mr. Santosh Pote, Mr. Changdeo Kadam and Mr. Shashikant
Shinde as partners of the firm, OIP acts as a sub-contractor for
carrying out various infrastructure construction activities viz.
laying pipes & SWD (Storm Water Drainage) works, earth work &
other foundation work for laying railway lines, construction of
roads, construction of dams & canals, etc. On the other hand, the
main raw materials viz. MS beams, plates & pipes, sand & cement,
drainage pipes, etc. are procured from the local suppliers of the
same across Mumbai.
P.D. BAJORIA: CARE Lowers Rating on INR7.48cr Loan to B-
--------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
P.D. Bajoria Tea And Agro Products Pvt Ltd (PDB), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 7.48 CARE B-; Stable; Issuer not
Facilities cooperating; Revised from
CARE B; Stable; Based on
best available information
Short-term Bank 0.35 CARE A4; Issuer not
Facilities cooperating; Based on best
available information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from PDB to monitor the rating
vide email communications/letters dated October 4, 2018,
November 8, 2018, November 14, 2018 and December 17, 2018, and
numerous phone calls. However, despite CARE's repeated requests,
the company 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 a fair rating. The rating on PDB's bank
facilities will now be denoted as CARE B-;Stable/CARE A4; ISSUER
NOT COOPERATING. Further, banker could not be contacted.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The rating takes into account its small scale of operation with
short track record, susceptible to vagaries of the nature and
exposure to raw material price fluctuation risk, high competition
with lack of backward integration and weak financial risk
profile marked by net loss and negative net worth and weak
liquidity. The ratings, however, derive strength from its
experienced promoters and proximity to raw material sources.
Detailed description of the key rating drivers
At the time of last rating in November 10, 2017, the following
were the rating strengths and weaknesses:
Key Rating Weaknesses:
Small scale of operation with short track record: PDB is a small
player in tea manufacturing business with revenue of INR1.53 crore
and net loss of INR0.79 crore in FY17. Furthermore, the total
capital employed was also modest at INR6.74 crore as on March 31,
2017. The small scale restricts the financial flexibility of the
company in times of stress. According to the management, during
7MFY18, the company has earned a total operating income of INR6.97
crore. The company has started operation from November 2016, thus
having very short track record of about one year.
Susceptible to vagaries of the nature and exposure to raw material
price fluctuation risk: Most of the tea gardens from which PDB
procures green leaves are concentrated in the state of West Bengal
and Assam. However, the region is prone to erratic weather
conditions. Therefore adverse natural events have negative bearing
on the productivity of tea gardens in the region and accordingly
PDB is exposed to vagaries of nature which further exposes the
company to raw material price fluctuation risks.
High competition with lack of backward integration: The tea
industry is an organised agro-industry. It is highly fragmented in
India with presence of many small, mid-sized and large players.
There are number of tea brands in India, of which 90% of the
brands are represented by regional players while the balance of
the 10% is dominated by Tata Tea, HUL, Wag Bakri Chai, Godrej,
Sapat International and others. Furthermore, the company does not
own any tea garden, thus it has to depend completely on local
gardens and open market which in turn decreases its profitability
on account of lack of backward integration.
Weak financial risk profile marked by net loss and negative net
worth and weak liquidity: Financial risk profile of the company is
weak marked by negative net worth of the company as on
March 31, 2017. This apart, interest coverage ratio has been below
unity during FY17 on account of lower operating profit with
respect to interest expense. The company served the interest
expenses from unsecured loan. The current ratio of the company
remained just above unity as on March 31, 2017. Average CC
utilisation during last 12 months ending on October 2017, was 90%.
Key Rating Strengths
Experienced promoters: PDB is currently managed by Mr. Vikash
Agarwal, Director, having about a decade of experience in similar
line of business. These apart, the other two directors are also
having around a decade of experience in similar industry.
Proximity to raw material sources: PDB's unit has close proximity
to local tea gardens and processing plants. Further, West Bengal
and nearby state like Assam are one of the major tea producing
area in India. Accordingly, PDB has locational advantage in terms
of proximity to raw material. This apart, the plant is located in
the vicinity of industrial area of West Bengal, having good
transportation facilities and other requirements like good supply
of power, water etc.
P.D. Bajoria Tea and Agro Products Pvt Ltd. (PDB) was incorporated
in March 2010 to initiate a tea processing business at Siliguri in
West Bengal. After remaining dormant for over six years, during
FY16, the company has installed a tea manufacturing unit at
Jalpaiguri in West Bengal with installed capacity of 12,00,000 kg
per annum. The commercial operation has started from November
2016. Currently the company is engaged in procuring processed tea
leaf from local tea plants.
The day-to-day affairs of the company are looked after by Mr.
Vikash Agarwal, director, with the help of the other directors and
a team of experienced personal.
PASHUPATI CASTINGS: CRISIL Maintains B+ Rating in Not Cooperating
-----------------------------------------------------------------
CRISIL has been consistently following up with Pashupati Castings
Limited (PCL) for obtaining information through letters and emails
dated June 28, 2018 and December 10, 2018 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 19.76 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of PCL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on PCL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of PCL continues to be 'CRISIL B+/Stable Issuer not
cooperating'.
Incorporated in 1996 in Aligarh and promoted by Mr. Yogendra Kumar
Yadav and Mr. Ashok Kumar Yadav, PCL manufactures mild-steel
ingots and TMT bars under the Pashupati TMT brand.
PRANAVAM AEROSPACE: CRISIL Withdraws B Rating on INR17cr Loans
--------------------------------------------------------------
Due to inadequate information, CRISIL, in line with SEBI
guidelines, had migrated the rating of Pranavam Aerospace Private
Limited (PAPL) to 'CRISIL B/Stable/Issuer not cooperating'. CRISIL
has withdrawn its rating on bank facility of PAPL following a
request from the company. Consequently, CRISIL is migrating the
ratings on bank facilities of PAPL from 'CRISIL B/Stable/Issuer
Not Cooperating to 'CRISIL B/Stable' The rating action is in line
with CRISIL's policy on withdrawal of bank loan ratings.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Cash 2 CRISIL B/Stable (Migrated from
Credit Limit 'CRISIL B/Stable ISSUER NOT
COOPERATING'; Rating Withdrawn)
Proposed Long 15 CRISIL B/Stable (Migrated from
Term Bank Loan 'CRISIL B/Stable ISSUER NOT
Facility COOPERATING'; Rating Withdrawn)
Incorporated in Sep 2016, PAPL is setting up a facility for
manufacturing of high precision engineering components for
aerospace industry. The unit is expected to commence operations
from Sep 2017.
PRAVEEDH DECOR: CARE Migrates B+ Rating to Not Cooperating
----------------------------------------------------------
CARE has been seeking information from Praveedh Decor Private
Limited (PDPL) to monitor the rating(s) vide e-mail
communications/ letters dated August 1, 2018, August 31, 2018,
November 15, 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 rating
on PDPL's bank facilities will now be denoted as CARE B+; Stable/
CARE A4; ISSUER NOT COOPERATING.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 2.22 CARE B+; Stable; Issuer not
Facilities cooperating; Based on best
available information
Proposed Long 1.00 CARE B+; Stable; Issuer not
term bank cooperating; Based on best
facilities available information
Short term 2.25 CARE A4; Issuer not
Bank Facilities cooperating; Based on best
available information
Proposed Short 1.25 CARE A4; Issuer not
term Bank cooperating; Based on best
Facilities 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.
The ratings take into account the small scale of operations with
low profitability, moderate capital structure & debt coverage
indicators, moderate liquidity position owing to working capital
intensive nature of operations, operations in the competitive and
fragmented industry, susceptibility of margins to volatile raw
material prices, long track record of operation and experienced
promoters in the textile industry, diversified clientele and
comfortable profitability margins.
Detailed description of the key rating drivers
Key Rating Weaknesses
Small scale of operations with low capitalization: The scale of
operations increased by 13.87% in FY18 and stood at INR11.40 crore
(as against INR10.01 crore in FY17) due to increase in the number
of orders executed. However, its net worth base remained low at
INR1.85 crore as on March 31, 2018 (vis-Ö-vis INR0.78 crore as on
March 31, 2017) which limits its financial flexibility to meet any
exigency.
Moderate capital structure and debt coverage indicators: PDPL's
capital structure improved and stood moderate with overall gearing
of 1.88x as on March 31, 2018 (vis-a-vis 5.06x as on March 31,
2017) owing to decline in the debt level on the back of repayment
of term loan availed from bank along with repayment of unsecured
loans and moderate dependence on working capital bank borrowings.
Further the net worth base has also improved marginally from
INR0.78 crore as on March 31, 2017 to INR1.85 crore as on March
31, 2018. Further, owing to the above coupled with marginal
improvement in GCA levels, the total debt to GCA improved and
stood at 3.66x as on March 31, 2018 (vis-a-vis 6.37x as on March
31, 2017) and interest coverage at 3.93x in FY18 as against 2.97x
in FY17 owing to improved profitability.
Moderate liquidity position owing to working capital intensive
nature of operations: The liquidity position is marked by moderate
current ratio and high operating cycle. The operations are
moderately working capital intensive in nature as the entity uses
plywood as a raw material whose prices fluctuates and also they
have to maintain the stock in order to avoid the shortage. The
entity imports around 70% of raw material from various countries
and offers a credit period of 30-60 days and it supplies majorly
to domestic customers and offers a credit period of 90-120 days to
maintain competitive edge.
Operations in the competitive and fragmented industry: PDPL
operates in a highly competitive and fragmented industry. The
company witnesses intense competition from both organized and
unorganized players. This fragmented and highly competitive
industry results into price competition thereby affecting the
profit margins of the companies operating in the industry.
Susceptibility of margins to volatile raw material prices: The
company has no long-term contract with the suppliers of raw
materials and solely depends upon the established relationships.
The prices of PDPL's major raw material, ie, plywood are prone to
price volatility and with RM contributing more than 70% towards
total cost of production during last two years ending FY17.
Further entity holds around 80 days of inventory and thus it is
subject to risk associated with adverse movement in the raw
material prices.
Key Rating Strengths
Long track record of operation and experienced promoters in the
textiles industry: The promoters of PDPL are very experienced and
are supported by experienced management team. Mr. Pankaj Chandak,
Mr. L.D.Chandak and Mrs. Navita Chandak directors of the company,
having average experience of around two decades in furniture
industry and are looking after the day-to-day operations of the
company. Furthermore, the top management is supported by personnel
having adequate and relevant experience in their respective fields
to carry out day-to-day operations.
Comfortable profitability margins: PBILDT margin remained
moderately comfortable in the range of 8.97% to 14.73% during last
three years ending FY18 on account of decline in material cost and
manufacturing expenses. PBILDT margin improved & stood at 14.73%
in FY18 vis-Ö-vis 12.96% in FY17. Further net profit margin also
improved and remained moderately comfortable at 6.33% in FY18 vis-
Ö-vis 4.28% in FY17 (vis-Ö-vis 1.62 % in FY16) due to
proportionate savings in interest and depreciation cost in FY18.
Diversified clientele: Customer base remained diversified with top
3 customers contributing 11% in FY17 and in FY16 as well. The
company sells its products to its domestic customers primarily in
the markets of Delhi, Rajasthan, Gujarat, Maharashtra, Andhra,
Telangana, Karnataka, Tamilnadu and Kerala.
Praveedh Decor Private Limited (PDPL) (erstwhile Prestige Interio
Concepts Private Limited) was incorporated in 2006. Prestige
Interio Concepts Private Limited was erstwhile known as Pratham
Trading Technologies Private Limited. Till 2012, the company was
managed by Mr. Nandlall Mandhana and Mr. Omprakash Gaggar. Later,
Mr. Pankaj Chandak took over this company and changed its name to
Prestige Interio Concepts Private Limited on May 2, 2012. PDPL is
engaged in manufacturing of wooden furniture panels which mainly
includes pre laminated panels used for furniture. PDPL has an
installed capacity of 6000 boards per month as on March 31, 2017
at its well equipped plant located at Vapi, Gujarat.
Out of the total purchases, the company imports more than 70% of
raw material majorly plywood and plastic sheets, laminates and
other material from Hong Kong, Korea, Austria, Germany, Vietnam,
Malaysia and China. The company sells its products to its domestic
customers primarily in the markets of Delhi, Rajasthan, Gujarat,
Maharashtra, Andhra, Telangana, Karnataka, Tamil Nadu and Kerala.
PRIMROSE INFRATECH: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: Primrose Infratech Private Limited
Registered Office as per MCA:
Flat No. 251-B, First Floor
LIG Flats Pkt-12 Jasola
New Delhi 110025
Insolvency Commencement Date: December 21, 2018
Court: National Company Law Tribunal, New Delhi Bench-II Bench
Estimated date of closure of
insolvency resolution process: June 20, 2019
(180 days from commencement)
Insolvency professional: CA Anil Matta
Interim Resolution
Professional: CA Anil Matta
Matta & Associates
Chartered Accountants
308, RG Trade Tower, Plot No. B-7
Netaji Subhash Place, Pitampura
Delhi 110034
E-mail: mattaassociates@gmail.com
Last date for
submission of claims: January 17, 2019
RAJASTHAN TOURS: CRISIL Maintains B+ Rating in Not Cooperating
--------------------------------------------------------------
CRISIL has been consistently following up with Rajasthan Tours
Private Limited (RTPL) for obtaining information through letters
and emails dated June 28, 2018 and December 10, 2018 among others,
apart from telephonic communication. However, the issuer has
remained non cooperative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Proposed Long Term
Bank Loan Facility .16 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Term Loan 2.34 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of RTPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on RTPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of RTPL continues to be 'CRISIL B+/Stable Issuer not
cooperating'.
Furthermore, the company has not paid the fee for conducting
rating surveillance as agreed to in the rating agreement.
RTPL, a private limited company, incorporated in September 1959 is
a travel company engaged in providing a range of services such as
transport services, organizing sightseeing and excursions and
travel and stay arrangements. It was founded by Mr. Bhim Singh who
is the chairman and managing director of the company. Mrs.
Madhuwanti Singh (Daughter of Mr. Bhim Singh) and Mrs. Rajkumari
(Wife of Mr. Bhim Singh) are directors with the company and
assists in the day to day operations of the company.
RAJATHADRI JEWELLERS: Ind-Ra Migrates D Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Rajathadri
Jewellers Private Limited's (RJPL) Long-Term Issuer Rating to 'IND
D' from 'IND B' while migrating the rating to the non-cooperating
category. The Outlook was Stable. The issuer did not participate
in the rating exercise, despite continuous requests and follow-ups
by the agency. Thus, 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 action is:
-- INR180.0 mil. Fund-based working capital limits (Long-
term/Short-term ) downgraded and migrated to non-cooperating
category with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; Based on
the best available information
KEY RATING DRIVERS
The ratings have been downgraded following a confirmation from the
lenders of RJPL that the company has been categorized as a non-
performing asset.
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 at least three consecutive
months will be positive for the ratings.
COMPANY PROFILE
RJPL has a gold and jewelry retail showroom in Bangalore.
RCM INFRASTRUCTURE: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: RCM Infrastructure Limited
#8-2-622/5/A/2, Indira Chambers
2nd Floor, Avenue-4
Road No. 10, Banjara Hills
Telangana 500034
Insolvency Commencement Date: January 3, 2019
Court: National Company Law Tribunal, Hyderabad Bench
Estimated date of closure of
insolvency resolution process: July 2, 2019
(180 days from commencement)
Insolvency professional: Manivannan J.
Interim Resolution
Professional: Manivannan J.
Plot No. 53B, 8/330
Vishalakshi Nagar
Fourth Cross Street
Santhosapuram, Chennai
Tamil Nadu 600073
E-mail: equitablelegal@gmail.com
Last date for
submission of claims: January 16, 2019
SAHYOG INDUSTRIES: CARE Assigns B+ Rating to INR5.49cr LT Loan
--------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Sahyog
Industries (SGI), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 5.49 CARE B+; Stable Assigned
Facilities
Detailed rationale
The ratings assigned to the bank facilities of SGI are primarily
constrained on account of its modest scale of operation with thin
profitability, leveraged capital structure and weak debt coverage
indicators. Furthermore, ratings are also constrained on account
of its partnership nature of constitution, presence in highly
competitive and fragmented cotton industry and susceptibility of
profit margins to cotton price fluctuations along with seasonality
associated with the cotton industry.
The rating, however, benefits from healthy experience of the
partners, proximity to cotton growing area of Gujarat and
satisfactory liquidity.
The ability of SGI to improve its scale of operations, profit
margins, capital structure as well as debt coverage indicators
and efficient working capital management is key rating
sensitivities.
Detailed description of the key rating drivers
Key Rating Weaknesses
Modest scale of operations with thin profitability: Although, SGI
has registered consistent growth in scale of operations marked
total operating income having compounded annual growth rate (CAGR)
of 20.79% during FY16-18 but remained modest at INR20.60 crore in
FY18 as against INR15.09 crore during FY17. Overall profit margins
remained thin during FY18 marked by PBILDT margin and PAT margin
of 3.11% and 0.06% respectively in FY18 owing to its low value
added nature of business.
Leverage capital structure and weak debt coverage indicators: The
capital structure remained leverage marked by overall gearing
ratio of 1.86 times as on March 31, 2018 owing to high debt level
with low net worth base. Further, owing to thin profitability with
high debt level, debt coverage indicators remained thin marked by
total debt to gross cash accruals ratio of 12.59 times and
interest coverage ratio of 1.96 times in FY18.
Partnership nature of constitution: SGI being a partnership firm
is exposed to inherent risk of the partners' capital being
withdrawn at the time of contingency and also limits the ability
to raise the capital.
Presence in highly fragmented and competitive cotton industry: SGI
operates in an industry characterized by high fragmentation and
intense competition on account of presence of a large number of
small and medium-scale units due to minimal technological and
financial investment requirement. Furthermore, due to limited
value addition, players present in this segment operate at a very
low bargaining power against its customers as well as suppliers.
Susceptibility of profit margins to cotton price fluctuations
along with seasonality associated with the cotton industry: The
profitability of SGI is exposed to fluctuations in raw material
prices, which is being an agricultural commodity its prices are
volatile in nature and linked to production in the domestic
market. Further, agro based industries have seasonality associated
with availability of raw materials due to different harvesting
periods. Further, the supply of key raw materials is primarily
dependent upon monsoon during a particular year as well as overall
climatic conditions.
Key Rating Strengths
Experienced partners: SGI firm is managed by three active partners
Mr. Ilyasali Devani, Mr. Mohit Devani and Mr. Yasinali Devani. All
the partners have healthy experience of more than three decades in
cotton ginning industry. All the partners collectively take
strategic decisions of the firm.
Proximity to cotton growing area: The manufacturing facilities of
SGI are located at Botad in Saurashtra region of Gujarat. Gujarat
produces around 30% of total national production of cotton; hence,
SGI's presence in the cotton producing region results in benefit
derived from a lower logistic expenditure, easy availability and
procurement of raw materials at effective prices and consistent
demand for finished goods resulting in a sustainable and clear
revenue visibility.
Adequate liquidity: Liquidity remained adequate marked by current
ratio of 1.40x as on March 31, 2018 and operating cycle of 67 in
FY18. Further, average utilization of working capital limit
remained moderate at 70% for the past 12 months ended November
2018. Cash flow from operating (CFO) activities of SGI remained
positive but moderate at INR0.79 crore during FY18 and cash and
bank balance on hand also remained low INR0.26 crore as on March
31, 2018.
SGI is a partnership firm and was established in year 2010. SGI is
managed by three active partners Mr. Ilyasali Devani, Mr. Mohit
Devani and Mr. Yasinali Devani. SGI is engaged into cotton ginning
and pressing business. SGI is operating from its sole
manufacturing unit located at Babra(Gujarat) having installed
capacity of Cotton bales- 1.52 Metric tonnes per hour, Cotton
seedcake - 2.99 Metric tonnes per hour as on March 31, 2018.
SHANKAR ENTERPRISES: Ind-Ra Withdraws BB on INR100MM Loans
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Shankar
Enterprises' Long-Term Issuer Rating in the non-cooperating
category and simultaneously withdrawn the rating.
The instrument-wise rating actions are:
-- INR40 mil. Fund-based working capital limit* maintained in
non-cooperating category and withdrawn; and
-- INR60 mil. Non-fund-based working capital limit# maintained
in non-cooperating category and withdrawn.
* Maintained in 'IND BB (ISSUER NOT COOPERATING)' before being
withdrawn
# Maintained in 'IND A4+ (ISSUER NOT COOPERATING)' before being
withdrawn
KEY RATING DRIVERS
Shankar Enterprises did not participate in the rating exercise
despite continuous requests and follow-ups by the agency. Ind-Ra
is no longer required to maintain the ratings, as the agency has
received a no objection certificate from the rated facility's
lender.
COMPANY PROFILE
Founded in 2000, Shankar Enterprises is engaged in civil
construction work. It undertakes projects for government and
private entities. The firm is led by Ramesh Jaiswal.
SHIV SHAKTI: CARE Lowers Rating on INR11.20cr LT Loan to B+
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Shiv Shakti Modern Flour Mills Private Limited (SSFMPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 11.20 CARE B+; Stable; Issuer not
Facilities cooperating; Revised from
CARE BB-; Stable; Based on
best available information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from SSFMPL to monitor the
rating vide e-mail communications/letters dated October 4, 2018,
November 8, 2018, November 14, 2018 and December 17, 2018 and
numerous phone calls. However, despite CARE's repeated requests,
the company 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 a fair rating. The rating on SSFMPL's bank
facilities will now be denoted as CARE B+; ISSUER NOT COOPERATING.
Further, the banker could not be contacted.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The rating takes into account its small scale of operation with
low profitability margins, margins susceptible to fluctuation
in the raw material price and government regulations, fragmented
and competitive nature of industry and seasonality nature of
availability resulting in high working capital intensity and
exposure to vagaries of nature. The ratings, however,
continue to draw comfort from experienced promoters and proximity
to raw material sources.
Detailed description of the key rating drivers
At the time of last rating in December 20, 2017, the following
were the rating strengths and weaknesses:
Key Rating Weaknesses:
Small scale of operation with low profitability margins: The scale
of operations remained small as compared to its peerswith a PAT of
INR0.32 crore on total operating income of INR66.56 crore during
FY17. Furthermore, total capital employed of the company, though
increased as on March 31, 2017, but remained low at INR14.05 crore
as against INR10.77 crore as on March 31, 2016. Furthermore, the
company have achieved the turnover of INR38.00 crore during
7MFY18.
Margins susceptible to fluctuation in the raw material price and
government regulations: The main raw material for production of
wheat flour is wheat. Prices of wheat are subject to government
intervention since it is an agricultural produce and staple food.
Various restrictions including minimum support price, control on
exports, wheat procurement policies for maintenance of buffer
stocks etc. are imposed to regulate the price of wheat in the
market. The MSP of wheat for 2016-17 is INR1625/quintal increased
from INR1525/quintal in 2015-16. The price of wheat is also
influenced by the supply scenario, which is susceptible to the
agro-climatic conditions. Thus any volatility in wheat prices can
have direct impact on the profitability margins of the company.
The companies in such industries have to store raw material during
the harvesting period for future consumption which leads to high
inventory holding period and results into high holding
cost.
Fragmented and competitive nature of industry: The agro processing
industry is highly fragmented and competitive due to presence of
many players operating in this sector owing to its low entry
barriers, due to low capital and technological requirements. Bihar
and nearby states are a major wheat growing area with many flour
mills operating in the area. High competition restricts the
pricing flexibility of the industry participants and has a
negative bearing on the profitability.
Seasonality nature of availability resulting in high working
capital intensity and exposure to vagaries of nature: Agro product
processing business is working capital intensive as the millers
have to stock wheat by the end of each season till the next season
as the price and quality of agro products are better during the
harvesting season. Further, while the raw material is sourced
mainly on a cash basis or on a credit period of a week, the
millers are required to extend credit period of around a week to
their customers. Accordingly, the working capital intensity
remains high impacting company's profitability. The average fund
based working capital utilisation remained high at 96% during the
last twelve months ended October 31, 2017. Efficient management of
working capital requirement is a key rating sensitivity. Also,
agro products cultivation is highly dependent on monsoons, thus
exposing the fate of the company's operation to vagaries of
nature.
Key Rating Strengths
Experienced promoters: Mr. Birendra Kumar and Mrs. Monika Kumari
are the directors of SSFMPL and looks after overall management of
the company. Mr. Birendra Kumar having around two decades of
experience in the flour mill business and are ably supported by
other director Mrs. Monika Kumari along with the team of
experienced professionals who have rich experience in the same
line of business.
Proximity to raw material sources: SSFMPL's plant is located in
the vicinity to a major wheat growing area, thus, resulting in
logistic advantage. The entire raw material requirement is met
locally from the farmers (or local agents) helping the company to
save simultaneously on transportation and procurement cost.
Shiv Shakti Modern Flour Mills Pvt. Ltd. (SSFMPL) was incorporated
in November 2007 by Mr. Birendra Kumar and Mrs. Monika Kumari of
Patna, Bihar. The company is engaged in the processing and milling
of wheat grains. The milling unit of the company is located at
East Champaran, Bihar with processing capacity of 45,000 Metric
Tonne Per Annum (MTPA). The flour mill manufactures atta, maida,
suji, rawa and wheat bran. The company sells its product to
traders and wholesalers located in Bihar only.
Mr. Birendra Kumar (aged 42 years), having around two decades of
experience in the same line of industry, looks after the overall
management of the company with adequate support from other
director and a team of experienced personnel.
SHRI SHYAMJI: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Shri Shyamji Agrico Exports Private Limited
Registered office:
39 B, Tyagi Colony Rajendra Park Nangloi
New Delhi, PIN: 110041 IN
E-mail: dsinternational2000@gmail.com
Factory/Works:
Village Pakhana, Sonkra Rd.
Taraori, Tehsil Nilokheri
Distt. Karnal (Haryana)
Insolvency Commencement Date: January 2, 2019
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: June 30, 2019
(180 days from commencement)
Insolvency professional: Mr. Sanjay Kumar Aggarwal
Interim Resolution
Professional: Mr. Sanjay Kumar Aggarwal
#14, New Punjab Mata Nagar
Main Street Pakhowal Road
Ludhiana 141013 (Pb)
E-mail: sanjayaggarwal.fcs@gmail.com
Last date for
submission of claims: January 21, 2019
SHUBHKAMNA BUILDTECH: Insolvency Resolution Process Case Summary
----------------------------------------------------------------
Debtor: Shubhkamna Buildtech Private Limited
197-E, Pocket-IV
Mayur Vihar Phase-I
Delhi 110091
Insolvency Commencement Date: November 26, 2018
Court: National Company Law Tribunal, Court-IV, New Delhi Bench
Estimated date of closure of
insolvency resolution process: May 25, 2019
(180 days from commencement)
Insolvency professional: Gurkamal Hora Arora
Interim Resolution
Professional: Gurkamal Hora Arora
1, Link Road, Jangpura Extention
New Delhi 110014
E-mail: gurkamal.hora@gmail.com
- and -
7th Floor, Mayur Bhawan
Shankar Market, Connaught Circus
New Delhi, Delhi 110001
Insolvency
Professionals
Representative of
Creditors in a class: Ms. Monika Agarwal
205, Chopra Complex
8, Preet Vihar
Community Centre
Delhi
E-mail: cacsmonika.agarwal@gmail.com
Mr. Brij Nandan Kalra
B-001, Park View Anand Bestech Sector-81
Gurugram, Haryana
E-mail: bnkalra1954@gmail.com
Mr. Tarun Kumar Banga
S-15/15, DLF City Phase-3
Gurugram 122002, Haryana
E-mail: bangatarun@yahoo.co.in
Last date for
submission of claims: January 12, 2019
SINGHAM BIO: CARE Assigns B+ Rating to INR8.75cr Loan to B+
-----------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Singham
Bio Crop Care Private Limited (SBC), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 8.75 CARE B+; Stable Assigned
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of SBC are constrained
on account of its small scale of operations, low profit margins,
leveraged capital structure, modest debt coverage indicators,
modest liquidity and risk associated with ongoing debt funded
capex. Further, the rating is also constrained due to
susceptibility of its profit margins to fluctuation in raw
material prices and presence in highly fragmented and competitive
fertilizer industry. The rating, however, derives comfort from
long experience of promoters in fertilizer industry and positive
demand outlook for fertilizer industry.
SBC's ability to increase its scale of operations with improvement
in profitability, capital structure and debt coverage indicators
along with efficient working capital management will be the key
rating sensitivity.
Detailed description of the key rating drivers
Key Rating Weaknesses
Small scale of operations coupled with low profit margins: The
scale of operation of SBC remained small as marked by total
operating income of INR8.26crore in FY18 as against INR7.55crore
during FY17. Operating profitability of SBC remained moderate as
marked by PBILDT margin of 6.37% in FY18 as compared to 7.01%
during FY17; however owing to high interest and depreciation cost,
PAT margin remained low at 0.52% in FY18 as against 1.30 % in
FY17. Consequently gross cash accruals also remained low at
INR0.25 crore in FY18 as against INR0.26 crore in FY17.
Leveraged capital structure and modest debt coverage indicators:
The capital structure remained leveraged marked by overall gearing
ratio of 1.82 times as on March 31, 2018 owing to low networth
base and high debt levels. Further, due to high debt level coupled
with low cash accruals reported during the year, debt coverage
indicators remained modest marked by total debt to GCA ratio of
12.11 times and interest coverage ratio of 1.94 times, in FY18.
Modest liquidity: The liquidity stood modest marked by current
ratio of 0.98 times as on March 31, 2018. Cash flow from operating
activities (CFO) remained negative at INR1.45crore in FY18 and
cash and bank remained low at INR0.04crore as on
March 31, 2018. Further, its working capital limit was also
remained almost fully utilized during past one year ended November
2018. However, During FY18, operating cycle remained moderate at
52 days in FY18 as against 38 days in FY17 mainly due to increase
in collection period days.
Project Risk: SBC is undertaking a capex for expansion of its
existing plant for addition of new product in its portfolio i.e
Single Super Phosphate with proposed installed capacity of 10000
Metric Tonne Per Month. The proposed total cost of project is
Rs.11crore, envisaged to be funded through debt/equity mix of 11
times. SBC is envisaging commencing commercial operation of new
product line from February 2019 onwards. SBC has incurred majority
of the cost towards the capex till December 28, 2018. As balance
cost is pending to be incurred project implementation risk and
consequent stabilization risk persists.
Susceptibility of profit margins to volatility in raw material
price: SBC is engaged in the business of manufacturing mixed
fertilizer chemical like Nitrogen Phosphorus Potassium (NPK) and
Single Super Phosphate, major raw materials being Gypsum, Urea,
Potassium Chloride (MOP), Di-Ammonium Phosphate (DAP) and Coal and
various other chemicals. Prices of these raw materials are
volatile in nature. Hence, the profitability of the company is
susceptible to the fluctuations in raw material prices and any
adverse fluctuation in the raw material price will have direct
impact on the operating margins of the company.
Presence in highly fragmented and competitive fertilizer industry:
SBC is currently into manufacturing of mixed fertilizer chemical.
The fertilizer industry is highly fragmented in nature with
presence of huge number of organized as well as unorganized
players in it. SBC being into fertilizer industry faces high
degree of competition from numerous players. Furthermore, due to
the fragmented nature of the industry, bargaining power of SBC
with customers is also restricted as reflected in small scale of
operations as well as low profitability.
Key Rating Strengths
Long Experience of promoters in fertilizer industry: SBC was
incorporated by Mr. Jigar H. Bhatt and Ms. Swetal J. Bhatt, both
the directors hold experience of more than a decade in same line
of business.
Positive demand outlook for fertilizers industry: Rapid
development of organic agriculture coupled with augmenting demand
for organic food is expected to increase the demand for mixed
fertilizers chemicals. The production of fertilizers has less
investment and high benefits. This factor is expected to augment
the fertilizers market over the forecast period.
Vadodara-(Gujarat) based Singham Bio Crop Care Private Limited
(SBC) was incorporated as a private limited company in September,
2011 by Mr. Jigar H. Bhatt and Ms. Swetal J. Bhatt. SBC is engaged
into manufacturing of Mixed Fertilizer Chemical like NPK (Nitrogen
Phosphorus Potassium) Fertilizer, which finds its application in
fertilizers used mainly in agro industries. SBC is undertaking
capex to manufacture Single Super Phosphate having envisaged cost
of INR11 crore with proposed installed capacity of 10000 Metric
Tonne Per Month of Single Super Phosphate and envisaged to
commence commercial operation of new product line from February
2019 onwards. SBC is operating from its sole manufacturing
facility in Vadodara (Gujarat) having existing installed capacity
of 200 Metric Tonne Per Day of NPK as on
March 31, 2018. It has an associate concern named Singham
Industries Private Limited which is engaged in trading of mixed
fertilizer chemicals.
SREE GURUDEVA: Ind-Ra Lowers INR161.24MM Bank Loan Rating to 'D'
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Sree Gurudeva
Charitable and Educational Trust's bank loan rating to 'IND D
(ISSUER NOT COOPERATING)' from 'IND BB- (ISSUER NOT COOPERATING)'.
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. Therefore,
investors and other users are advised to take appropriate caution
while using the rating. The rating will now appear as 'IND D
(ISSUER NOT COOPERATING)' on the agency's website.
The detailed rating actions are:
-- INR161.24 mil. Bank loans downgraded with IND D (ISSUER NOT
COOPERATING) rating; and
-- INR70 mil. Fund-based working capital facilities downgraded
with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; Based on
the best available information
KEY RATING DRIVERS
The downgrade reflects ongoing delays in debt servicing by the
trust due to a stressed liquidity profile.
RATING SENSITIVITIES
Positive: Timely debt servicing for at least three consecutive
months could result in an upgrade.
COMPANY PROFILE
Sree Gurudeva Charitable and Educational Trust were established in
2008 in Pallickal, Kerala. The trust has been managing Sri
Vellappally Natesan College of Engineering since 2008 and offers
B.Tech and M.Tech courses. Mr. Tushar Vellapally is the chairman
of the trust.
TRUST CHEMISTS: Ind-Ra Affirms B LT Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Trust Chemists
and Druggists Limited's (TCDL) Long-Term Issuer Rating at 'IND B'.
The Outlook is Stable.
The instrument-wise rating action is:
-- INR140 mil. Fund-based working capital limit affirmed with
IND B/Stable/IND A4 rating.
KEY RATING DRIVERS
The ratings reflect TCDL's continued small scale of operations,
EBITDA losses and weak credit profile. In FY18, revenue was
INR759.7 million (FY17: INR1,102.4 million), EBITDA margin was
negative 16.7% (negative 8.1%), interest coverage was negative
0.5% (0.04%) and net leverage (adjusted net debt/operating
EBITDAR) was negative 18.7x (227.7x). The negative EBITDA margin
was because of the losses reported by many of its stores due to
high competition along with inventory losses due to a steep
decline in medicine prices.
Ind-Ra however believes TCDL would turn EBITDA positive by end-
FY19. This is because the company has opened 20 hospital medical
stores (total 34), where margins are higher than retail medical
stores, and closed 77 loss-making retail medical stores during the
24 months ended December 2018 (majority in 2018). The company
plans to open 10 more hospital medical stores by May 2019 in a
phased manner. Additionally, it is implementing cost-cutting
measures, increasingly focusing on the sale of dietary
supplements, which fetch higher margins, and plans to introduce
some products under its own brand. According to provisional
financials for the period April-September 2018, it achieved
revenue of INR296.4 million with an EBITDA margin of around
negative 2.4%.
However, the ratings benefit from TCDL's comfortable liquidity
position with 71% average utilization of the fund-based facilities
for the 12 months ended December 2018. In FY18, TCDL had a cash
balance of INR16.7 million (FY17: INR9.6 million) and cash flow
from operations turned positive at INR59.4 million (negative
INR115.2 million).
The ratings are also supported by the company promoter's
experience of over a decade in running retail medical stores and
other pharma related activities.
RATING SENSITIVITIES
Negative: Inability to achieve the revenue and margin as expected
by the management will be negative for the ratings.
Positive: A positive rating action could result from sustained
positive profitability leading to improved credit metrics.
COMPANY PROFILE
Incorporated in 2003 by Mr. Hemanth Kumar Bothra, TCDL runs
pharmacy retail chains in Karnataka with over 55 outlets. The
company is a one-stop healthcare shop with integrated offerings
across pharmacy, health and wellness care. It operates through
several formats such as stand-alone pharmacies, pharmacies in
hospitals, corporate campuses and malls; and shop-in-shop
pharmacies in supermarkets.
TULSI EXTRUSIONS: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Tulsi Extrusions Limited
Plot No. N-99, M.I.D.C. Area
Jalgaon 425003
(Maharashtra)
Insolvency Commencement Date: December 12, 2018
Court: National Company Law Tribunal, Jalgaon Bench
Estimated date of closure of
insolvency resolution process: June 26, 2019
(180 days from commencement)
Insolvency professional: Amit Chandrashekhar Poddar
Interim Resolution
Professional: Amit Chandrashekhar Poddar
'AKSHAT', 7, Vijay Nagar
Katol Road, Opp. NCC Office
Nagpur 440013
E-mail: amitpoddar.ca@gmail.com
ip.tulsi@gmail.com
Last date for
submission of claims: January 11, 2019
UNIQUE CHAINS: CRISIL Withdraws B+ Rating on INR20cr Loans
----------------------------------------------------------
Due to inadequate information, CRISIL, in line with SEBI
guidelines, had migrated the rating of Unique Chains Private
Limited (UCPL) to 'CRISIL B+/Stable/Issuer not cooperating'.
CRISIL has withdrawn its rating on bank facility of UCPL following
a request from the company and on receipt of a 'no dues
certificate' from the banker. Consequently, CRISIL is migrating
the ratings on bank facilities of UCPL from 'CRISIL
B+/Stable/Issuer Not Cooperating to 'CRISIL B+/Stable'. The rating
action is in line with CRISIL's policy on withdrawal of bank loan
ratings.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL B+/Stable (Migrated
from 'CRISIL B+/Stable ISSUER
NOT COOPERATING'; Rating
Withdrawn)
Proposed Long 10 CRISIL B+/Stable (Migrated
Term Bank Loan from 'CRISIL B+/Stable ISSUER
Facility NOT COOPERATING'; Rating
Withdrawn)
UCPL was started as proprietorship concern by Mr. Prem Mehra in
1977. In 2010, it was incorporated as a private-limited company.
The existing directors are Mr. Prem Mehra, his wife Ms. Pooja
Mehra and sons, Mr. Ankit Mehra and Mr. Saiyam Mehra. The company
manufactures, designs, and undertakes labour jobs of gold and has
its manufacturing facility in Dadar (Mumbai).
UNTITEK POWER: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Unitek Power Solutions India Ltd
XVIII/135, (PB No. 77)
Masjid Road, Aluva
Ernakulam 683101
India
Insolvency Commencement Date: January 1, 2019
Court: National Company Law Tribunal, Ernakulam Bench
Estimated date of closure of
insolvency resolution process: June 30, 2019
Insolvency professional: Sankar P. Panicker
Interim Resolution
Professional: Sankar P. Panicker
64/768, Panicker and Panicker Advocates
Jaikunj, Chittoor Road
Kochi 682035
E-mail: sankarpanicker@gmail.com
Last date for
submission of claims: January 15, 2019
WHITE HORSE: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: White Horse Network Services Pvt. Ltd.
No. 223, G R Arcade, 3rd Floor
Sampige Road, Malleshwaram
Bengaluru 560003
Insolvency Commencement Date: December 31, 2018
Court: National Company Law Tribunal, Bangalore Bench
Estimated date of closure of
insolvency resolution process: June 30, 2019
Insolvency professional: Mr. Suryanarayana Prathap Kumar Pande
Interim Resolution
Professional: Mr. Suryanarayana Prathap Kumar Pande
No. 139, Shaimar Galaxy, 3rd Floor
Sheshadripuram Main Road
Bangalore 560020
Tel.: 080-23465808
Mobile: 9448089774
E-mail: pande@pkpandeassociates.com
Last date for
submission of claims: January 14, 2019
=====================
P H I L I P P I N E S
=====================
RIZAL COMMERCIAL BANK: Fitch Puts BB+ LT IDR on Rating Watch Neg.
-----------------------------------------------------------------
Fitch Ratings has placed Rizal Commercial Banking Corporation's
Long-Term Issuer Default Rating of 'BB+' on Rating Watch Negative,
in light of its assessment that the bank's asset-quality metrics
may be significantly affected by its exposure to Hanjin Heavy
Industries and Construction Philippines, which filed for creditor
protection on January 8, 2019.
Fitch will resolve the Rating Watch once more clarity emerges
about the financial impact on RCBC from the exposure.
KEY RATING DRIVERS
VIABILITY RATING AND IDRS
The RWN reflects the possibility of a downgrade of RCBC's
Viability Rating (VR) and IDRs as a result of its exposure to HHIC
Phil. RCBC is not the only bank with exposure to the entity, but
its exposure is the largest among the five banks reportedly
affected. The roughly USD145 million exposure is equivalent to
about 9% of the bank's end-3Q18 equity and exceeds its 2017 pre-
tax profit.
The precise financial implications for RCBC are still being
assessed. HHIC Phil's reported net asset position could help limit
any losses, but the path to recovery remains uncertain and is
likely to be protracted. An adverse outcome could have a
significant impact on RCBC's asset-quality metrics, which in turn
would affect its profitability and potentially result in capital
impairment.
Fitch estimates that RCBC's gross non-performing loan (NPL) ratio
would rise to more than 4% on a pro forma basis (end-2017: 2.2%)
once the bank classifies the exposure as non-performing. This is
significantly higher than the system's gross NPL ratio of around
1.9% at end-November 2018, and would be the highest among Fitch-
rated Philippine banks. Provisioning needs could be substantial
given the size of the exposure, and the bank's operating
profit/risk-weighted assets of around 1.2% in 2017 was already a
thinner earnings buffer than those of most other rated Philippine
banks. This could result in an impairment in capital, although
RCBC's capitalisation - as indicated by its common equity Tier 1
ratio of 14.5% at end-September 2018 - remained satisfactory
relative to the size of this exposure.
MEDIUM-TERM NOTE PROGRAMME AND SENIOR DEBT
The ratings on RCBC's medium-term note programme and senior notes
are the same as its Long-Term IDR. The senior notes and senior
debt issued under the programme constitute direct, unsubordinated
and unsecured obligations of RCBC and rank equally with all its
other unsecured and unsubordinated obligations. The RWN on these
instruments mirror that on RCBC's IDR.
RATING SENSITIVITIES
VIABILITY RATING AND IDRS
Fitch will look to resolve the RWN once there is more clarity on
the ultimate financial impact of the HHIC Phil exposure on RCBC,
which is likely to depend on the debt rehabilitation agreement.
The ratings may be downgraded if weaker-than-expected recovery on
the exposure leads to significantly higher impairment charges and
poorer risk-adjusted profitability for RCBC relative to its peers
and Fitch's previous expectations, or if negative spill-over
effects were to develop such that Fitch's assessment of the bank's
financial position is no longer consistent with the current
ratings. While the current ratings already capture risks from high
loan concentrations, which are common among Philippine banks
including RCBC, RCBC's ratings may be downgraded if there are any
additional large asset impairments that could materially weaken
the bank's asset quality and profitablity metrics, relative to its
peers.
The ratings could be placed back on Stable Outlook provided that
the bank is able to recover the majority of its exposures to HHIC
Phil, assuming all other rating factors remain broadly steady.
MEDIUM-TERM NOTE PROGRAMME AND SENIOR DEBT
The ratings on RCBC's medium term note programme and senior notes
would move in tandem with its Long-Term IDR.
=================
S I N G A P O R E
=================
CHINA FISHERY: Court Junks Bid to Intervene in Suit vs HSBC
-----------------------------------------------------------
Bankruptcy Judge James L. Garrity, Jr. issued an order denying the
motion of China Fishery Group Limited (Cayman) to intervene in the
Trustee's HSBC adversary proceeding captioned William A. Brandt,
Jr., as Trustee of CFG Peru Investments Pte. Ltd. (Singapore)
Plaintiff, v. The Hongkong and Shanghai Banking Corporation
Limited, Defendant, Adv. Pro. No. 18-01575-JLG (Bankr. S.D.N.Y.).
In the adversary proceeding, William A. Brandt, Jr., as the
chapter 11 trustee of CFG Peru Investments Pte. Ltd. (Singapore)
is seeking to recover damages from The Hongkong and Shanghai
Banking Corporation Limited ("HSBC") that CFG Peru allegedly
suffered by reason of actions taken by HSBC in enforcing its
rights against China Fishery Group Limited (Cayman) ("CFGL") and
China Fisheries International Limited (Samoa) ("CFIL"), as
borrowers and/or guarantors under that certain Club Facility CFGL
filed a motion pursuant to Rule 24 of the Federal Rules of Civil
Procedure to intervene in the adversary proceeding. The Trustee
and HSBC object to the Motion.
By the motion, CFGL seeks to intervene in this action, and join in
and adopt the claims asserted by the Trustee in the Complaint. It
contends that as an indirect 100% shareholder of CFG Peru, and
therefore the Peruvian OpCos, it stands in the same position as
the Trustee. It maintains that since its revenue was derived
primarily from the Peruvian Business, and it is a joint and
several obligor under the Club Facility, it was significantly
harmed by the damages inflicted on the Peruvian Business by HSBC.
CFGL argues that it can intervene in the Adversary Proceeding as
of right pursuant to Federal Rule 24(a)(1), because it is a "party
in interest" under section 1109(b) of the Bankruptcy Code and, in
any event, satisfies the requirements for mandatory intervention
under Federal Rule 24(a)(2). Alternatively, CFGL asserts that
because CFGL's claims against HSBC arise from the same facts and
circumstances asserted in the Trustee's Complaint, it should be
permitted to intervene pursuant to Federal Rule 24(b)(1)(B).
Finally, CFGL requests that the Court dispense with the
requirement for the filing of a separate complaint under Federal
Rule 24(c). CFGL asserts that in contrast to a "typical" motion to
intervene in a pending litigation, it is "not looking to assert
new claims against HSBC," but rather "seeks only to join and adopt
the claims asserted in the Trustee's Complaint as against HSBC."
It maintains that given the "unique circumstances" of the
adversary proceeding, it is "unnecessary for [it] to file a
separate pleading at this time."
The Court is not persuaded by CFGL's contentions. First, as an
indirect shareholder, CFGL, in effect, concedes that any stake it
may have in the outcome of the Adversary Proceeding is, as a
factual and structural matter, conditional and indirect. The
outcome of the litigation may have no impact at all on CFGL and
the other Debtors who are above CFGL in the capital structure if
recoveries to creditors of the Peruvian Opcos do not leave any
residual value to be upstreamed to CFG Peru's equity holders.
Second, that CFGL was one of the entities over which the JPLs were
appointed does not, without more, give rise to a direct pecuniary
interest in the claims asserted against HSBC, and to be sure, CFGL
did not and could not articulate any such nexus. Finally, CFGL's
contention that it was "directly damaged" by HSBC's actions
plainly contradicts its repeated statements and position that it
is "not looking to assert new claims against HSBC but rather seeks
to "join and adopt all claims asserted by the Trustee in the
Trustee Complaint." Instead, it is clear from the record of these
cases and the parties' pleadings that CFGL's interest in the
adversary proceeding is indirect at best, and simply too inchoate
to constitute a "sufficient stake" for purposes of being
designated a "party-in-interest" under section 1109(b) of the
Bankruptcy Code.
Accordingly, CFGL cannot intervene in this adversary proceeding as
of right under Federal Rule 24(a)(1).
A copy of the Court's Memorandum Decision dated Dec. 27, 2018 is
available at https://bit.ly/2MmO7lL from Leagle.com.
William A Brandt, Jr., Plaintiff, represented by Lisa Laukitis --
lisa.laukitis@skadden.com -- Skadden, Arps, Slate, Meagher & Flom
LLP.
William A Brandt, Jr. Plaintiff, represented by James C. Tecce --
jamestecce@quinnemanuel.com -- Quinn Emanuel Urquhart & Sullivan,
LLP.
The Hongkong and Shanghai Banking Corporation Limited, Defendant,
represented by Elliot Moskowitz -- elliot.moskowitz@davispolk.com
-- Davis Polk & Wardwell LLP.
About China Fishery Group Limited (Cayman)
China Fishery Group Limited (Cayman) and its affiliates sought
protection under Chapter 11 of the Bankruptcy Code (Bankr.
S.D.N.Y. Lead Case No. 16-11895) on June 30, 2016.
In the petition signed by CEO Ng Puay Yee, China Fishery Group
estimated its assets at $500 million to $1 billion and debt at $10
million to $50 million.
The cases are assigned to Judge James L. Garrity Jr.
Weil, Gotshal & Manges LLP has been tapped to serve as lead
bankruptcy counsel for China Fishery and its affiliates other than
CFG Peru Investments Pte. Limited (Singapore). Weil Gotshal
replaces Meyer, Suozzi, English & Klein, P.C., the law firm
initially hired by the Debtors. The Debtors have also tapped
Klestadt Winters Jureller Southard & Stevens, LLP, as conflict
counsel; Goldin Associates, LLC, as financial advisor; RSR
Consulting LLC as restructuring consultant; and Epiq Bankruptcy
Solutions, LLC, as administrative agent. Kwok Yih & Chan serves
as special counsel.
On Nov. 10, 2016, William Brandt, Jr., was appointed as
Chapter 11 trustee for CFG Peru Investments Pte. Limited
(Singapore), one of the Debtors. Skadden, Arps, Slate, Meagher &
Flom LLP serves as the trustee's bankruptcy counsel; Hogan Lovells
US LLP serves as special counsel; and Quinn Emanuel Urquhart &
Sullivan, LLP, serves as special litigation counsel.
RHODIUM RESOURCES: Fitch Withdraws B- IDR for Commercial Purposes
-----------------------------------------------------------------
Fitch Ratings has affirmed Rhodium Resources Pte. Ltd.'s Long-Term
Foreign-Currency Issuer Default Rating of 'B-' with a Stable
Outlook and its senior unsecured rating of 'B-'. At the same time,
the agency has chosen to withdraw Rhodium's ratings for commercial
reasons. Accordingly, Fitch will no longer provide ratings or
analytical coverage for Rhodium.
The ratings were withdrawn with the following reason: for
commercial purposes.
KEY RATING DRIVERS
Small Trader, Weak Liquidity: Rhodium's rating reflects its small
operating scale relative to Fitch's rated commodity traders and
weak liquidity profile. Fitch views Rhodium's small scale as a
disadvantage because it limits funding access and operating
efficiency compared with that of larger players. Rhodium reported
annual EBITDAR of USD29 million for the fiscal year ended February
28, 2018 (FY18), against a midpoint of USD250 million for
companies rated in the 'B' category according to Fitch's
commodity-processing navigator. A heavy reliance on short-term,
uncommitted lines to fund its trades renders its funding
susceptible to sudden changes in creditor sentiment.
Moderating Growth: Fitch expects Rhodium's revenue growth to
decelerate to below 20% in the next 18 months, from an average
growth rate of around 40% in the past three years. Rhodium's
ability to expand is constrained by limited insurance headroom
with which it can insure around 65% of its receivable balance.
Nonetheless, Fitch expects the company to continue its growth
trajectory, albeit at a slower rate, and maintain an overall
credit profile that is consistent with its rating based on a
stable margin, sufficient debt servicing, continued access to
banks and insurance limits as well as discipline in its back-to-
back trading model.
Lower Profit Margin and Fixed Charge Coverage: Fitch expects
Rhodium's fixed charge coverage to hover between 1.6x-1.8x over
the next 12-18 months, slightly lower than its previous estimate
of around 2.0x. This is because the company's plan to improve its
margin through supplier advances did not materialise, as its bond
issuance did not proceed.
Exposure to Cyclical Commodities: Rhodium's exposure to commodity-
price risk is largely mitigated by its back-to-back trading model
and zero inventory holding. Palm oil and coal historically
contributed around 70% of total sales; however, in the past two
years Fitch also saw increasing contribution from copper, which
now contributes around 20% of total trade value. Nevertheless,
Rhodium remains exposed to cyclical commodities because, as a
price taker, its profitability margin also depends on commodity-
price fluctuations to some extent. Rhodium reported a lower margin
for FY18 due to weaker commodity prices. Its trading margin
subsequently improved to 2.4% in 6MFY18, from 2.2%, on a
recovering copper price.
DERIVATION SUMMARY
Rhodium is rated one notch lower than Australia-based heavy-
equipment rental company, Emeco Holdings Limited (B/Stable), owing
to its weaker liquidity, higher leverage and smaller business
scale. Fitch believes Emeco is in a better position than Rhodium,
especially during commodity downturns, which justifies the rating
difference. Rhodium is rated lower than Chinese commodity trader,
Tewoo Group Co., Ltd. (BBB/Stable, standalone: BB), in light of
Tewoo's market dominance as one of China's largest commodity and
metal traders, its lower leverage and sound working capital
management that leads to positive free cash flow.
KEY ASSUMPTIONS
- Revenue growth decelerating to 18% in FY19 and 15% in
FY20 (FY18: 30%)
- Stabilised gross profit margin of 2.4% (FY18: 2.2%)
- No significant capex or investments
RATING SENSITIVITIES
Rating sensitivities are no longer relevant as the ratings have
been withdrawn.
LIQUIDITY AND DEBT STRUCTURE
Weak Liquidity, Manageable Maturities: Rhodium has a weak
liquidity profile that is driven by high reliance to short-term,
uncommitted banking lines to fund working capital. The weak
liquidity is accentuated by the company's exposure to cyclical
commodities and inherently thin margin buffer. Nonetheless, Fitch
believes Rhodium will maintain sufficient debt servicing capacity,
supported by stable fixed charge cover and manageable debt
maturities of around USD3 million annually.
*********
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
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*** End of Transmission ***