/raid1/www/Hosts/bankrupt/TCRAP_Public/190807.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
Wednesday, August 7, 2019, Vol. 22, No. 157
Headlines
A U S T R A L I A
AVEO GROUP: Still in Talks with Brookfield on AUD1.27BB Cash Offer
CN BUILDING: Second Creditors' Meeting Set for Aug. 13
DAVID ORIEL: Second Creditors' Meeting Set for Aug. 13
HERITAGE BAY: Second Creditors' Meeting Set for Aug. 15
J & A LOGISTICS: Second Creditors' Meeting Set for Aug. 15
OCTERPUS PTY: Second Creditors' Meeting Set for Aug. 13
PEPTIDE CLINICS: Faces Fine for Marketing 'Dangerous' Products
SKM RECYCLING: CBA Taps KPMG as Receiver for SKM Corporate
SUPERWAY GROUP: First Creditors' Meeting Set for Aug. 15
TLC PLUMBING: Second Creditors' Meeting Set for Aug. 16
I N D I A
AGGARSAIN SPINNERS: Ind-Ra Gives B- Issuer Rating, Outlook Stable
ARYAMAN ISPAT: Ind-Ra Assigns 'BB-' Issuer Rating, Outlook Stable
AZAM RUBBER: ICRA Cuts Issuer Rating to D on Debt Payment Delays
B.K.THRESHERS: ICRA Lowers Rating on INR120cr LT Loan to 'D'
CH.GOWRI SHANKAR: Ind-Ra Affirms BB+ Issuer Rating, Outlook Stable
CHEEKA RICE: CARE Keeps B on INR8cr Bank Loans in Non-Cooperating
DEVKIRAN PAPER: Ind-Ra Migrates 'BB-' LT Rating to Non-Cooperating
DHANA SHREE: CARE Keeps D on INR1.3cr Loans in Non-Cooperating
GVR BEHARI: Ind-Ra Maintains 'D' Issuer Rating in Non-Cooperating
GVR NAGAUR: Ind-Ra Migrates 'D' Issuer Rating to Non-Cooperating
GVR PANNA: Ind-Ra Maintains 'D' Issuer Rating in Non-Cooperating
HARROW EDUCATIONAL: CARE Maintains D Rating in Not Cooperating
HIMANSHU INDUSTRIES: CARE Keeps D Loans Rating in Non-Cooperating
HUHTAMAKI FOODSERVICE: CARE Maintains B Rating in Not Cooperating
IBD UNIVERSAL: ICRA Maintains D Rating in Not Cooperating
K.B. GEMS: Ind-Ra Migrates 'BB+' Issuer Rating to Non-Cooperating
KAMESHWAR INDUSTRIES: CARE Keeps D on INR8cr Debt on NonCooperating
KAVAN COTTON: ICRA Keeps D on INR41.5cr Loans in Non-Cooperating
KISSAN POULTRY: ICRA Keeps D on INR13.6cr Loans in Not Cooperating
MAGPPIE EXPORTS: ICRA Lowers Rating on INR19.50cr Loan to D
MAXIMAA SYSTEMS: CARE Moves D on INR8.3cr Loans to Not Cooperating
MINI HOTELS: ICRA Keeps D on INR6.5cr Loan on Not Cooperating
MY CAR PRIVATE: ICRA Lowers Rating on INR28.50cr Loan to D
NAGARJUNA OIL: Haldia Petro Withdraws Appeal to Join in Revival
NHC FOODS: Ind-Ra Raises Long Term Issuer Rating to 'BB+'
POWER TELEVENTURES: CARE Maintains D Rating in Not Cooperating
RCI INDUSTRIES: Ind-Ra Lowers Long Term Issuer Rating to 'D'
SACHDEVA AND SONS: Insolvency Resolution Process Case Summary
SARGAM METALS: ICRA Keeps D on INR41cr Bank Loans in NonCooperating
SHREE RR PIPES: CARE Maintains D Debt Rating in Not Cooperating
SILK WOVEN: ICRA Withdraws 'D' Ratings on INR6.5cr Loans
SIZZLING BEVERAGES: ICRA Puts D Rating on Notice of Withdrawal
SUPERIOR FOOD: CARE Lowers Rating on INR25.69cr Loan to 'C'
SUZUKI TEXTILES: CARE Keeps D on INR164cr Loans in Not Cooperating
VIJIT INTERNATIONAL: CARE Cuts Ratings on INR7cr Loans to 'D'
[*] INDIA: Lok Sabha Passes Amendments to Bankruptcy Code
M A L A Y S I A
BARAKAH OFFSHORE: Unit Sues Petronas Over Licence Suspension
S I N G A P O R E
HONESTBEE: Seeks Court Protection, Owes Creditors US$180MM
MANHATTAN RESOURCES: Posts SGD895,000 Net Loss in Q2
- - - - -
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A U S T R A L I A
=================
AVEO GROUP: Still in Talks with Brookfield on AUD1.27BB Cash Offer
------------------------------------------------------------------
Aditya Soni at The Sydney Morning Herald reports that embattled
retirement living operator Aveo Group said on August 6 that
Brookfield Asset Management had offered AUD1.27 billion in cash to
acquire the company.
SMH relates that the disclosure is the first time Aveo has put a
value on the offer since it first revealed it was in talks with the
Canadian firm nearly a month ago.
According to the report, Brookfield's proposal values Aveo at
AUD2.195 per share, representing a 8.1 per cent premium to the
company's last closing share price
Aveo's acquisition would give Brookfield a sizeable chunk of
Australia's aged-care industry, which has seen its valuations slide
to attractive levels in the wake of a public inquiry into
mistreatment and abuse of residents in aged-care facilities, SMH
says.
SMH notes that Aveo revealed in June that the property downturn had
hit its earnings and warned underlying profits would fall to AUD50
million. It cut its annual distribution to unit holders in half.
Settlements are taking longer as incoming residents experience
increased difficulty in selling their homes to move on, creating
the knock-on effect of delaying decisions to purchase in Aveo's
villages, it said.
According to SMH, the group's sales took a dive after a joint
investigation by The Age and Herald in conjunction with ABC's 4
Corners exposed a litany of questionable business practices,
including churning of residents, fee-gouging, safety issues and
misleading marketing promises.
Brookfield's offer price would be reduced by the value of any
distributions declared by Aveo after entering into an acquisition
agreement, the Canadian firm said, adds SMH.
Aveo Group's activities include the development for resale of land
subdivision, residential and commercial property along with
commercial and residential building and construction. The Company
also develops and manages retirement villages and invests in and
manages office and commercial properties along with providing funds
management and other property services.
CN BUILDING: Second Creditors' Meeting Set for Aug. 13
------------------------------------------------------
A second meeting of creditors in the proceedings of CN Building
Holdings Pty Ltd has been set for Aug. 13, 2019, at 11:00 a.m. at
the offices of O'Brien Palmer, Level 9, at 66 Clarence Street, in
Sydney, 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 Aug. 12, 2019, at 4:00 p.m.
Daniel Frisken of O'Brien Palmer was appointed as administrator of
CN Building on July 9, 2019.
DAVID ORIEL: Second Creditors' Meeting Set for Aug. 13
------------------------------------------------------
A second meeting of creditors in the proceedings of David Oriel
Industries Pty Ltd has been set for Aug. 13, 2019, at 2:00 p.m. at
the offices of Deloitte Financial Advisory Pty Ltd, Eclipse Tower,
Level 19, at 60 Station Street, in Parramatta, 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 Aug. 12, 2019, at 4:00 p.m.
Neil Robert Cussen of Deloitte Financial Advisor was appointed as
administrator of David Oriel on July 9, 2019.
HERITAGE BAY: Second Creditors' Meeting Set for Aug. 15
-------------------------------------------------------
A second meeting of creditors in the proceedings of Heritage Bay
Pty Ltd, formerly trading as Strathpine Hyperbowl & Olympic Bowling
Parts and Supplies, has been set for Aug. 15, 2019, at 10:00 a.m.
at Suite D, Level 14, at 241 Adelaide Street, in Brisbane,
Queensland.
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 Aug. 14, 2019, at 5:30 p.m.
Thyge Trafford-Jones and Domenic Calabretta of Mackay Goodwin were
appointed as administrators of Heritage Bay on July 11, 2019.
J & A LOGISTICS: Second Creditors' Meeting Set for Aug. 15
----------------------------------------------------------
A second meeting of creditors in the proceedings of J & A Logistics
Australia Pty Ltd has been set for Aug. 15, 2019, at 11:00 a.m. at
the offices of PCI Partners Pty Ltd, Level 8, at 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 Aug. 14, 2019, at 5:00 p.m.
P Newman of PCI Partners Pty Ltd was appointed as administrator of
J & A Logistics on July 11, 2019.
OCTERPUS PTY: Second Creditors' Meeting Set for Aug. 13
-------------------------------------------------------
A second meeting of creditors in the proceedings of Octerpus Pty
Limited has been set for Aug. 13, 2019, at 10:00 a.m. at Level 27,
at 259 George Street, in Sydney 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 Aug. 12, 2019, at 4:00 p.m.
Sule Arnautovic and Trent Andrew Devine of Jirsch Sutherland were
appointed as administrators of Octerpus Pty on July 9, 2019.
PEPTIDE CLINICS: Faces Fine for Marketing 'Dangerous' Products
--------------------------------------------------------------
Meagan Dillon at ABC News reports that the Federal Court has found
that a company selling products marketed as expensive wonder drugs
that bronzed skin, built muscle and improved fitness had been
misleading customers.
According to the report, the court found Peptide Clinics had been
"obstructive" during the Therapeutic Goods Administration (TGA)
investigation into its practices before revelations it had been
using doctors banned from prescribing peptides to prescribe the
drugs.
ABC relates that Federal Court Judge Jayne Jagot found the
Sydney-based company - which is now in liquidation - had engaged in
misleading and false advertising and slapped the business with a
AUD10 million fine.
ABC says the court was told first-time customers were asked to
complete a medical questionnaire to gain access to an exclusive
part of Peptide Clinics' website where Schedule 4 substances, which
required a prescription, could be purchased for up to AUD1,400.
It heard the questionnaire was assessed by a medical practitioner
before the sale went ahead.
"(Peptide Clinics) refused to identify to the TGA the names and
registration numbers of the medical practitioners who were said to
grant access to the backend of the website," Judge Jagot said in
her judgement, ABC relays.
"It was later revealed that certain doctors that Peptide Clinics
used to write prescriptions for its products had previously had
limitations placed on their medical licences which prevented them
from providing substances like peptides."
One of the products being sold by the clinic, which claims to have
had 50,000 customers, was controversial drug Melanotan II - an
injection that tans skin and is commonly used in Australia's
bodybuilding and fitness industry, according to ABC.
Also known as the "Barbie drug", Melanotan II was identified on the
2013 AFL charge sheet against Essendon as the drug former coach and
player James Hird allegedly injected himself with, the report
discloses.
He reportedly suffered side effects including discoloured skin and
sensitivity to the sun.
ABC adds that another product sold by Peptide Clinics was a
Selective Androgen Receptor Modulator (SARM) known as S22.
According to ABC, Judge Jagot accepted the submission by the TGA
that it was "dangerous for Peptide Clinics to promote Schedule 4
substances for non-therapeutic purpose for which they were
advertised, especially without proper supervision by a qualified
healthcare professional".
The drugs were marketed to improve confidence, lean muscle mass,
tanning, weight loss, libido, hair loss and insomnia.
"The products sold by Peptide Clinics were expensive," the court
found, ABC relays. "The evidence shows that products were being
sold for amounts ranging from AUD99.95 to AUD209.95, AUD900 and
AUD1399.85.
ABC relates that the court was told that over an eight-month
period, the business received more than AUD2 million in income and
made a gross profit of almost AUD900,000.
Judge Jagot accepted the TGA submission that Peptide Clinics
"deliberately and recklessly pursued its own financial
self-interest at the expense of its legal obligations and the
interests of public health," the report adds.
SKM RECYCLING: CBA Taps KPMG as Receiver for SKM Corporate
----------------------------------------------------------
Sarah Thompson and Anthony Macdonald at Australian Financial
Review's Street Talk reports that Commonwealth Bank of Australia
has taken control of SKM Corporate Pty Ltd, one of the entities
within SKM Recycling Group.
The country's biggest bank has appointed KPMG as receiver of SKM
Corporate and has asked KPMG to perform an immediate review of the
recycling group, Street Talk says.
KPMG partners Brendan Richards and Peter McCluskey are spearheading
the work, the report says.
SKM collapsed last week and CBA is the largest creditor with a loan
believed to be worth about AUD60 million, according to Street
Talk.
"While it is not appropriate to comment in detail on an individual
customer's case, we can confirm we have been working closely and
cooperatively with this customer for an extended period of time,"
Street Talk quotes CBA as saying in a statement on August 6.
"Following the Supreme Court of Victoria appointing a liquidator to
SKM Corporate, we have now appointed a receiver and manager to work
collaboratively with the relevant stakeholders to resolve the
matter as quickly as possible."
According to Street Talk, SKM's administration comes after several
winding-up applications that creditors have made via the Federal
and Victorian Supreme courts. Jason South
Victoria's Supreme Court put SKM into liquidation on August 2, when
the company failed to secure a AUD13.5 million deal to pay off
creditors following a series of fires and stockpiling issues at its
plants, Street Talk discloses.
David Ross from Hall Chadwick was appointed administrator.
Street Talk relates that the company also faces insolvency in
Queensland and it has faced pressure to remove more than 380
shipping containers of recyclable material from a suburban Adelaide
site.
SKM is understood to have more than AUD50 million owing to hundreds
of creditors, and the prospect of non-compliance and big fines from
the Environment Protection Authority, as well as council contracts
being cancelled, adds Street Talk.
Privately-owned SKM provides recycling sorting services to 12
councils across Victoria including City of Ballarat, City of
Melbourne and Shire of Mornington Peninsula. SKM Recycling is
owned and run by the Italiano family.
SUPERWAY GROUP: First Creditors' Meeting Set for Aug. 15
--------------------------------------------------------
A first meeting of the creditors in the proceedings of Superway
Group Wholesale Distribution Pty Ltd will be held on Aug. 15, 2019,
at 10:30 a.m. at Suite 4, Level 3, Bryant House, at 26 Duporth
Avenue, in Maroochydore, Queensland.
Paul Eric Nogueira of Worrells Solvency & Forensic Accountants was
appointed as administrator of Superway Group on Aug. 5, 2019.
TLC PLUMBING: Second Creditors' Meeting Set for Aug. 16
-------------------------------------------------------
A second meeting of creditors in the proceedings of TLC Plumbing &
Bathrooms Pty Ltd has been set for Aug. 16, 2019, at 11:00 a.m. at
the offices of Rapsey Griffiths Turnaround + Insolvency, Level 5,
at 55-57 Hunter Street, in Newcastle, 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 Aug. 15, 2019, at 4:00 p.m.
Mitchell Griffiths of Rapsey Griffiths Turnaround + Insolvency were
appointed as administrators of TLC Plumbing on July 26, 2019.
=========
I N D I A
=========
AGGARSAIN SPINNERS: Ind-Ra Gives B- Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Aggarsain Spinners
Limited (ASL) a Long-Term Issuer Rating of 'IND B-'. The Outlook is
Stable.
The instrument-wise rating actions are:
-- INR19.00 mil. Fund-based working capital limit assigned with
IND B-/Stable/IND A4 rating.
KEY RATING DRIVERS
The ratings reflect ASL's small scale of operations with revenue of
INR64.70 million, according to the provisional financials of FY19
(FY18: INR150.34 million), on a decline in demand from customers on
the back of unfavorable market conditions. The company's EBITDA
margins were modest at 3.94% in FY19 (FY18: 7.28%) due to increased
administrative expenses. ROCE came in at 1.89% in FY19 (FY18:
7.74%).
Credit metrics are weak with gross interest coverage (operating
EBITDAR/gross interest expense + rents) of 1.21x in FY19 (FY18:
1.32x) and net leverage (adjusted net debt/operating EBITDAR of
24.26x (5.48x).
The ratings are constrained by ASL's elongated net cash cycle of
723 days in FY19 (FY18: 242 days) due to an increase in outstanding
debtors for over six months.
The ratings also reflect ASL's tight liquidity position, indicated
by an average maximum fund-based working capital limit use of
93.27% for the 12 months ended May 2019. ASL's cash flow from
operations turned negative to INR26.53 million in FY19 (FY18:
INR31.67 million). Cash and cash equivalent declined to INR0.08
million in FY19 from INR7.39 million in FY18.
ASL is in the process of acquiring a manufacturing unit for further
growth and expansion of the business. This acquisition is likely to
be completed by FYE20 and is likely to be funded partially through
an unsecured loan from directors and term loan.
The ratings are, however, supported by the founders' two decades of
experience in the textile trading business.
RATING SENSITIVITIES
Positive: Consistent revenue growth along with an improvement in
the credit metrics with the successful completion of the
acquisition will lead to positive rating action.
COMPANY PROFILE
Incorporated in 1998, ASL trades cotton yarn and fabrics in
Himachal Pradesh, Haryana, Punjab, Delhi, Rajasthan, and Uttar
Pradesh. The day-to-day operations are managed by Ramesh Kumar
Garg; Sunny Garg and Ajay Kumar Garg who are also the directors of
the company.
ARYAMAN ISPAT: Ind-Ra Assigns 'BB-' Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Aryaman Ispat
Private Limited (AIPL) a Long-Term Issuer Rating of 'IND BB-'. The
Outlook is Stable.
The instrument-wise rating actions are:
-- INR100.00 mil. Fund-based working capital limit assigned with
IND BB-/Stable/IND A4+ rating; and
-- INR120.00 mil. Non-fund-based working capital limit assigned
with IND A4+ rating.
KEY RATING DRIVERS
The ratings reflect AIPL's medium scale of operations, as indicated
by revenue of INR1,960.49 million in FY19 (FY18: INR2349.43
million). The fall in FY19 revenue can be attributed to change in
major supplier's (Bhushan Steel Limited; now Tata Steel BSL
Limited) trading policy, owing to its acquisition by Tata Steel
Limited ('IND AA'/Stable/'IND A1+').
The ratings also factor in the company's modest margins due to the
company's presence in the highly-competitive steel industry which
is vulnerable to fluctuations in the price of raw materials. AIPL's
margins expanded to 2.25% in FY19 (FY18: 1.66%), aided by the
change in trading policy due to which products were sold at a
higher price. Its return on capital employed was 10.69% in FY19
(FY18: 11.71%).
The ratings are also constrained by AIPL's weak credit metrics due
to low EBITDA and high debt levels. Its interest coverage
(operating EBITDA/gross interest expense) improved to 1.63x (FY18:
1.37x) and net financial leverage (total adjusted net debt /
operating EBITDAR) to 8.35x (8.62x), primarily on account of an
improvement in absolute EBITDA to INR44.21 million (INR38.96
million) and a decrease in associated interest obligations to
INR27.11 million (INR28.38 million).
The ratings also reflect AIPL's modest liquidity position, as
indicated by its average maximum fund-based working capital
utilization of 86.07% for the 12 months ended June 2019. Its cash
flow from operations remained negative at INR34.42 million in FY19
(FY18: negative INR79.47 million) due to an elongated working
capital cycle. Cash and cash equivalent stood at INR0.91 million at
FYE19 (FYE18: INR1.69 million).
The ratings, however, are supported by the promoters' more than a
decade of experience in the iron and steel trading business.
Furthermore, the company is also an authorized distributor of Tata
Steel BSL hot-rolled and cold-rolled sheets and coils.
RATING SENSITIVITIES
Positive: An increase in the revenue and/or a rise in the EBITDA
margin, leading to improvement in the credit metrics, all on a
sustained basis, will lead to positive rating action.
Negative: A decline in the scale of operations leading to a decline
in credit metrics and any deterioration in the liquidity position
will lead to negative rating action.
COMPANY PROFILE
AIPL was incorporated in January 2006 and is engaged in the trading
of hot-rolled and cold-rolled sheets and coils. The day-to-day
operations are managed by directors - Mr. Dinesh Kumar Garg, Mrs.
Parul Garg, and Mr. Deepak Garg.
AZAM RUBBER: ICRA Cuts Issuer Rating to D on Debt Payment Delays
----------------------------------------------------------------
ICRA has downgraded the issuer rating of Azam Rubber Products
Limited from [ICRA]C+ to [ICRA]D.
Rationale
The revision in rating is on account of delays in debt repayments
owing to the stretched liquidity position of the company. ICRA
takes note of weak financial profile as reflected by decline in
operating income in FY2019 (provisional) to INR65.64 crore from
INR85.01 crore in FY2018, leveraged capital structure and weak debt
coverage indicators.
Going forward, the company's ability to improve its liquidity
position and service its debt in a timely manner will be the key
rating sensitivity.
Outlook: Not applicable
Key rating drivers
Credit strengths
Experienced management with established track record in footwear
industry – The management of ARPL is well qualified and the
promoters have over three decades of experience in the footwear
industry.
Credit challenges
Stretched liquidity position resulted in delays in debt servicing
There have been delays in debt servicing owing to the stretched
liquidity position of the company.
Liquidity Position:
There have been delay in debt servicing owing to the stretched
liquidity position of the company.
Incorporated in 1994, ARPL is promoted by Mr. Azam Khan. The
company is manufactures footwear including hawai (flip flop)
slippers, sandals and sports shoes, etc. and has two manufacturing
units located at Gorakhpur Industrial Development Authority (GIDA),
Gorakhpur, Uttar Pradesh, with a total installed capacity of 4.35
crore pairs of footwear annually. Hawai slippers are produced and
ethylene vinyl acetate/polyvinyl chloride (EVA/PVC) footwear is
produced. The main raw material used by the company is rubber, EVA
and PVC, which it procures domestically. The products of the
company are marketed in UP, Bihar, Jharkhand, Chhattisgarh and MP,
under the brand name ARP through a network of around 250 dealers.
B.K.THRESHERS: ICRA Lowers Rating on INR120cr LT Loan to 'D'
------------------------------------------------------------
ICRA has downgraded the ratings of bank facilities of B.K.Threshers
Pvt. Ltd (BKTPL) to [ICRA]D/[ICRA]D from [ICRA]B
(Negative)/[ICRA]A4 and the ratings continue to remain in the
'Issuer Not Cooperating' category. The rating is now denoted as
"[ICRA]D/[ICRA]D ISSUER NOT COOPERATING"
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term-Fund 120.00 [ICRA]D ISSUER NOT COOPERATING
Based-Cash revised from [ICRA]B
Credit (Negative); Rating continue to
remain in 'Issuer Not
Cooperating' category
Long term-Fund 110.00 [ICRA]D ISSUER NOT COOPERATING
based-Term revised from [ICRA]B
Loans (Negative); Rating continue to
remain in 'Issuer Not
Cooperating' category
Long term-Non 4.00 [ICRA]D ISSUER NOT COOPERATING
fund based revised from [ICRA]B
(Negative); Rating continue to
remain in 'Issuer Not
Cooperating' category
Short term-Non 1.00 [ICRA]D ISSUER NOT COOPERATING
fund based revised from [ICRA]A4; Rating
continue to remain in 'Issuer
Not Cooperating' category
Long Term/Short 5.00 [ICRA]D ISSUER NOT COOPERATING
Term-Unallocated revised from [ICRA]B
(Negative)/[ICRA]A4; Rating
continue to remain in 'Issuer
Not Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
information on the issuers' performance. Accordingly, the lenders,
investors and other market participants are advised to exercise
appropriate caution while using this rating as the rating may not
adequately reflect the credit risk profile of the entity, despite
the downgrade.
Rationale
The rating downgrade follows the delays in debt servicing by BKTPL
to the lender(s), as confirmed by them to ICRA.
Incorporated in 2009, BKTPL is promoted by Mr. Bellam Kotaiah and
is involved in threshing and re-drying of tobacco in addition to
carrying tobacco exports. The Company setup a 12 TPH (tons per
hour) threshing plant at Kalikivai, near Tangutur, Andhra Pradesh
and the plant commenced operations from April 2012. The company
purchases various types of tobacco (Flue Cured Virginia (FCV) and
non-Virginia tobacco) from Andhra Pradesh and Karnataka tobacco
auction platforms (conducted by Government of India), processes and
sells it to domestic/ overseas clients.
CH.GOWRI SHANKAR: Ind-Ra Affirms BB+ Issuer Rating, Outlook Stable
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Ch.Gowri Shankar
Infra build (India) Private Limited's (CHGS) Long-Term Issuer
Rating at 'IND BB+'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR80 mil. Fund-based limits affirmed with IND BB+/Stable
rating; and
-- INR150 mil. (increased from INR70 mil.) Non-fund-based limits
affirmed with IND A4+ rating.
KEY RATING DRIVERS
The affirmation reflects CHGS' continued medium scale of operations
despite the growth in revenue to INR2,225 million in FY19 (FY18:
INR1,052 million). The rise in revenue was on account of an
increase in civil work orders from the Telangana government. As of
May 2019, the firm had an unexecuted order book of INR3,827
million, likely to be executed by August 2020. FY19 financials are
provisional in nature.
The ratings are also constrained by the firm's tight liquidity
position as indicated by 97.95% peak utilization of its fund-based
limits and overutilization of its non-fund-based limits (against
fixed deposit with a bank) for the 12 months ended June 2019. Its
cash flow from operations remained negative at INR27.53 million
(FY18: negative INR29.17 million), mainly due to an increase in
working capital required to meet the increase in orders. At FYE19,
CHGS had a cash balance of INR47.02 million (FYE18: INR21.31
million).
However, the ratings are supported by the firm's healthy EBITDA
margin of 10.42% in FY19 (FY18: 6.77%) with a return on capital
employed of 61% (27%). The improvement in the EBITDA margin was on
account of an increase in EBITDA to INR233.90 million in FY19
(FY18: INR71.20 million), resulting from a reduction in other
operating expenses. Consequently, its interest coverage (operating
EBITDA/gross interest expense) improved to 27.57x in FY19 (FY18:
6.38x) and net leverage (total adjusted net debt/operating EBITDAR)
to 0.51x (1.52x). The firm's credit metrics are strong.
The ratings remain supported by the promoter's three decades of
experience in the civil construction business.
RATING SENSITIVITIES
Positive: Sustained improvement in the operating performance along
with an improvement in the liquidity position will be positive for
the ratings.
Negative: Any deterioration in operating performance and further
stress on the liquidity position will be negative for the ratings.
COMPANY PROFILE
Established in 1986 as a proprietorship firm by Mr. Gowri Shankar,
CHGS is a special class civil contractor and undertakes civil
contract works for buildings, warehouses, drainage systems, and
irrigation projects.
CHEEKA RICE: CARE Keeps B on INR8cr Bank Loans in Non-Cooperating
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Cheeka Rice
Mill (CRM) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 8.00 CARE B; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated July 9, 2018 placed the
rating of CRM under the 'issuer noncooperating' category as CRM had
failed to provide information for monitoring of the rating. CRM
continues to be noncooperative despite repeated requests for
submission of information through numerous phone calls and e-mail
dated July 12, 2019 and numerous phone calls. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the best available information which however, in CARE's opinion
is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The rating has been taken into account non-availability of
requisite information and no due-diligence conducted with
banker due to non-cooperation by Cheeka Rice Mill with CARE'S
efforts to undertake a review of the rating outstanding.
CARE views information availability risk as a key factor in its
assessment of credit risk.
Detailed description of the key rating drivers
At the time of last rating on July 9, 2018, the following were the
rating weakness and strengths (Updated for the information
available from the Registrar of companies):
Key Rating Weaknesses
Small scale of operations with low profitability margins: The scale
of operations continues to remain small reflected by total
operating income (TOI) of INR29.65 crore in FY15 (refers to the
period April 1 to March 31) as against INR23.71 in FY14. The PBILDT
margin of the firm has declined in FY15 and stood at 2.87% as
against 3.24% in FY14. However, the PAT margin has improved in FY15
and stood at 0.10% as against 0.04% in owing to comparatively lower
interest and deprecation cost during FY15.
Weak financial risk profile: The financial risk profile of CRM is
characterized by low profitability margins, leveraged capital
structure and weak coverage indicators. The firm's profitability
margins have been on the lower side owing to the low value addition
and intense market competition given the highly fragmented nature
of the industry. This apart, interest burden on working capital
borrowing also restricts the net profitability of the firm. The
PBILDT and PAT margins stood at around 4.70% and 0.03% respectively
in the last three financial years (FY11-FY13). As on March 31,
2013, the firm has a leveraged capital structure marked by overall
gearing ratio of 2.38x as on March 31, 2013, which deteriorated
from 1.54x as on March 31, 2012, mainly on account of higher
utilization of working capital bank borrowings as on balance sheet
date. The firm's coverage indicators stood weak marked by low
interest coverage and high total debt to GCA of 1.18x and above
44x, respectively, for FY13 due to low profitability margin and
high debt level.
Leveraged capital structure and weak debt service coverage
indicators: Capital structure of the firm has improved in FY15;
however, stood leveraged marked by overall gearing of 1.67x as on
March 31, 2015, as against 2.19x as on March 31, 2014 on account of
higher utilization of working capital bank borrowings as on balance
sheet date. Debt coverage indicators have remained weak marked by
interest coverage and total debt to GCA of 1.14x and 59.23x for
FY15 against 1.15x and 62.22x for FY14.
Partnership nature of constitution: CRM being a partnership firm
and is exposed to the risk of withdrawal of capital by partners due
to personal exigencies, dissolution of firm due to retirement or
death or insolvency of any partner and restricted financial
flexibility due to inability to explore cheaper sources of finance
leading to limited growth potential.
Highly fragmented industry characterized by high competition: The
commodity nature of the product makes the industry highly
fragmented with numerous players operating in the unorganized
sector with very less product differentiation. There are several
small-scale operators which are not into end-to-end processing of
rice from paddy, instead they merely complete a small fraction of
processing and dispose-off semi processed rice to other big rice
millers for further processing. Agro-based industry is
characterized by its seasonality, as it is dependent on the
availability of raw materials, which further varies with different
harvesting periods. The price of rice moves in tandem with the
prices of paddy.
Key Rating Strengths
Experienced partners and long track record of operations: CRM is a
partnership firm with a track record of over four decades in
processing of paddy into rice. Mr Sat Pal and Ms Darshana Devi have
a total experience of around than two decades in the business of
processing and trading of paddy. Prior to this, Mr Sat Pal was
involved in Vishnu Trading Co (trading of paddy).
Favorable manufacturing location: CRM is mainly engaged in the
milling and processing of rice. The main raw material (paddy) and
wheat is procured from local grain markets, located in Haryana. The
firm's processing facility is situated in Cheeka, Haryana, which is
one of the highest producers of paddy in India. Its presence in the
region gives additional advantage over the competitors in terms of
easy availability of the raw material as well as favorable pricing
terms. CRM owing to its location is in a position to cut on the
freight component of incoming raw materials.
Fragmented nature of the industry: The commodity nature of the
product makes the industry highly fragmented with numerous players
operating in the unorganized sector with very less product
differentiation. There are several small scale operators which are
not into end to-end processing of rice from paddy, instead they
merely complete a small fraction of processing and dispose-off semi
processed rice to other big rice millers for further processing.
Cheeka Rice Mills (CRM) was established in 1972 as a partnership
firm. The present partners include Mr. Sat Pal and Ms. Darshana
Devi with equal profit sharing of 50% each. The firm is engaged in
trading and processing of rice. The firm is also engaged in
processing of rice for other rice millers on job work basis. The
manufacturing unit is located at Cheeka, Haryana. CRM procures
paddy from local grain markets through commission agents in bulk
mainly from the states of Haryana and Punjab. CRM has an open
storage facility of around 5 acres and storage capacity of around
10,000 tons approximately. The firm sells its products in the
states of Haryana and Punjab through a network of commission
agents.
DEVKIRAN PAPER: Ind-Ra Migrates 'BB-' LT Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Devkiran Paper
Mills 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 given below:
-- INR127.6 mil. Term loan due on June 2024 migrated to non-
cooperating category with IND BB- (ISSUER NOT COOPERATING)
rating;
-- INR130 mil. Fund-based facilities migrated to non-cooperating
category with IND BB- (ISSUER NOT COOPERATING) / IND A4+
(ISSUER NOT COOPERATING) rating;
-- INR35 mil. Non-fund-based facilities migrated to non-
cooperating category with IND A4+ (ISSUER NOT COOPERATING)
rating; and
-- INR107.4 mil. Proposed fund-based facilities* migrated to non-
cooperating category with Provisional IND BB- (ISSUER NOT
COOPERATING) / Provisional IND A4+ (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
August 3, 2018. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Devkiran Paper Mills was incorporated in 1988 as a private limited
company in Mysore. It manufactures recycled kraft paper for the
packaging and laminating industries. Mr. R H Ramanuja Setty, Mr. R
H Sreenivas Setty, Mr. Ramakrishna Setty, and Mr. Bhaskar Setty are
the promoters.
DHANA SHREE: CARE Keeps D on INR1.3cr Loans in Non-Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Dhana Shree
Developers (DSD) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 1.32 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated February 14, 2019, placed
the rating(s) of DSD under the 'issuer non-cooperating' category as
Dhana Shree Developers had failed to provide information for
monitoring of the rating. Dhana Shree Developers continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter dated July
16, 2019. In line with the extant SEBI guidelines, CARE has
reviewed the rating on the basis of the best available information
which however, in CARE's opinion is not sufficient to arrive at a
fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers
At the time of last rating on February 14, 2019, the following were
the rating strengths and weaknesses:
Key rating Weakness
On-going delays in debt servicing: As per banker interaction, there
were instances of delay in repayment of term loan since
October 201. However since March 2018, the account is regular and
now the conduct of account is satisfactory.
Project execution risk: The firm has successfully completed both
(Dhana Shree Heights- Andheri and Dhana Shree Pearl-Taloja)
projects and currently does not have any project.
Saleability risk: In case of Andheri project, the firm has sold 73
offices (out of 76 shops), 32 flats (out of 32 flats) and 6 shops
(out of 8 shops). In Taloja project, out of 104 flats 84 flats are
sold and 20 flats are remained unsold till date. Moreover, as
discussed above, the firm has an un-sold inventory at Taloja, which
can be utilized towards funding of the project and meeting its debt
obligations. Furthermore, the marketing risk continues to be
partially mitigated given the presence in well established
location, the risk to a certain extent is mitigated. Nevertheless,
going forward, its ability to timely monetize its inventory (both
at Andheri and Taloja) and timely meet its debt obligations shall
be critical from credit perspective.
Key Rating Strengths
Experienced partners: The partners of the firm Mr. Dnyaneshwar
Dabhole, Mr. Vijay Mehta and Mr. Sameer Shah have more than two
decades of experience in the construction and real estate industry.
The partners have also executed residential projects through
various group entities in Mumbai.
Dhana Shree Developers (DSD) was established in 2000 by Mr.
Dnyaneshwar Dabhole, Mr. Vijay Mehta, Mr. Sameer Shah and Mr.
Balwantrai Mehta. The firm has been primarily involved in
development of residential and commercial projects in Mumbai.
GVR BEHARI: Ind-Ra Maintains 'D' Issuer Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained GVR Behari
Hanumana Tollway Private Limited's (GBHTPL) term loan ratings in
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 the rating. The rating will
continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.
The detailed rating action is:
-- INR1,086.9 bil. Term loan (long-term) due on October 2025
maintained in a non-cooperating category with IND D (ISSUER
NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
August 17, 2018. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
GBHTPL has been granted a 15-year
design-build-fund-operate-transfer concession by Madhya Pradesh
Road Development Corporation for the two-laning of the
Behari-Hanumana section from 110km of NH-75(E) to 243km of NH-7.
GVR NAGAUR: Ind-Ra Migrates 'D' Issuer Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated GVR Nagaur Bikaner
Tollway Private Limited's (GNBTPL) bank loan ratings 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 the ratings. The ratings will now
appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating action is:
-- INR3.150 bil. Bank loan (long-term) migrated to non-
cooperating category with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
July 20, 2018. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
GNBTPL is a special purpose vehicle fully owned by GVR Infra
Projects Limited. It was incorporated for the development and
operation of a 108.26-kilometer section on the Nagaur-Bikaner
stretch of National Highway-89 in Rajasthan.
GVR PANNA: Ind-Ra Maintains 'D' Issuer Rating in Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained GVR Panna
Amanganj Tollway Private Limited's term loan rating in 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 the rating. The rating will
continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR870.7 mil. Term loan (long-term) due on November 2025
maintained in the non-cooperating category with IND D (ISSUER
NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
August 17, 2018. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
GVR Panna Amanganj Tollway has been granted a 15-year
design-build-fund-operate-transfer concession by Madhya Pradesh
Road Development Corporation Limited for the expansion of a 58.18km
part of the Panna-Amanganj section of State Highway-47 into two
lanes.
HARROW EDUCATIONAL: CARE Maintains D Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Harrow
Educational Society continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 5.39 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated September 18, 2018 placed
the rating of Harrow Educational Society under the 'issuer
non-cooperating' category as Harrow Educational Society had failed
to provide information for monitoring of the rating. Harrow
Educational Society continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls July 12, 2019. In line with the extant SEBI guidelines,
CARE has reviewed the rating on the basis of the best available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The ratings takes into account the ongoing delays in the servicing
of interest obligations due to stressed liquidity position.
Uttar Pradesh based HES was established in 1981 with an objective
to provide education services. The society is managed by Er. Navin
Prasad Mathur (President), Mrs. Veena Mathur (Secretary) and Mr
Vinesh Pal Singh (Treasurer). HES provides undergraduate and
post-graduate courses in various fields of Engineering, Computers
Science, Management and Pharma. The colleges is affiliated to
Gautam Buddha Technical University and is approved by the All India
Council for Technical Education (AICTE). The society also operates
a school in the name of Harrow School providing primary and
secondary education from Nursery to class XIIth. The school is
affiliated to Central Board of Secondary Education (CBSE).
HIMANSHU INDUSTRIES: CARE Keeps D Loans Rating in Non-Cooperating
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Himanshu
Industries continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 10.00 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated October 25, 2018 placed the
rating of Himanshu Industries under the 'issuer noncooperating'
category as Himanshu Industries had failed to provide information
for monitoring of the rating. Himanshu Industries continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls July 12, 2019. In line
with the extant SEBI guidelines, CARE has reviewed the rating on
the basis of the best available information which however, in
CARE's opinion is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The ratings take into account the ongoing delays in the servicing
of interest obligations due to stressed liquidity position.
Himanshu Industries (Himanshu) was established in January, 2005 as
a proprietorship firm by Mr. Himanshu Garg. The firm is engaged in
the manufacturing of corrugated boxes, mono cartons and rigid
boxes. The firm has its manufacturing unit at Faridabad, Haryana
with an installed capacity of 10,00,000 pieces per month as on
March 31, 2017. Prior to April, 2016, the firm was engaged in
leasing & renting services. The firm undertakes direct sales under
the brand name "BigBox Inc" mainly to manufacturers located in the
region of Delhi NCR wherein it caters to some large and reputed
player viz. VLCC Health Care Limited, Panasonic India Private
Limited, FieldFresh Foods Private Limited (DelMonte India), Intex
Technologies (India) Limited, Karbonn Mobile India Private Limited,
Magicon Impex Private Limited (JIVI Mobiles), etc. The major raw
materials required are paper boards, duplex board, kraft paper,
dyes, art paper, etc. which are procured domestically from local
dealers.
HUHTAMAKI FOODSERVICE: CARE Maintains B Rating in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Huhtamaki
Foodservice Packaging India Private Limited (HFP) continues to
remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 23.00 CARE B; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated Dec. 7, 2018, placed the
rating(s) of HFP's under the 'issuer non-cooperating' category as
Huhtamaki Foodservice Packaging India Private Limited had failed to
provide information for monitoring of the rating. HFP's continues
to be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter dated July
15, 2019. In line with the extant SEBI guidelines, CARE has
reviewed the rating on the basis of the best available information
which however, in CARE's opinion is not sufficient to arrive at a
fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Detailed description of the key rating drivers
Key rating Weakness
Modest scale of operations and low profitability: HFP's the scale
of operations remained modest with low capitalization. The
operations of the entity remained modest and with high operating
expenses, the profitability level of the entity remained low. Owing
to the same debt coverage indicators remained weak, however after
the acquisition by Huhtamaki Group, the promoters have infused
funds to support the operations of the entity.
Working capital intensive nature of operation: HFP's (formerly
VSPL) operations continued to be moderately working capital
intensive in nature with funds largely blocked in inventory and
debtors. The collection period deteriorated in FY18 on account of
higher credit period offered to retain the customers. Inventory
period deteriorated in FY18 on account of higher finished goods
inventory at the year end. However in light of low credit period
received from its suppliers, dependence on external funds remained
high.
Susceptibility to volatile raw materials prices: The volatility of
raw material prices shall be sensitive factor as the company as
raw materials contributed around 53% towards TOI. Further with
entity maintaining around 84 days of inventory to smoothly
run the business operations and with limited bargaining power
against its customers, any volatility in prices has to be borne
by HFP's.
Presence in highly competitive & fragmented industry: HFP's
operates in highly fragmented and competitive market marked
by the presence of numerous organised as well as unorganised
players in India as well as overseas. Low entry barriers and
low investment requirements makes the industry highly lucrative and
thus competitive. Smaller companies in general are more vulnerable
to intense competition due to their limited pricing flexibility,
which constrains their profitability as compared to larger
companies who have better efficiencies and pricing power
considering their scale of operations.
Project risk: During FY18, HFP's has undertaken expansion project
to manufacture specialised cups. Furthermore, the operating scales
have been fluctuating during last three years with incurring
losses; however, timely completion of orders and significant
project risk shall be the critical point in terms of credit
perspective.
Key rating Strengths
Experienced and resourceful promoters: The promoters of the entity
Huhtamaki Group has over 9 decades of experience in packaging
business and has global presence with esteemed clientele in
different industries. With new management acquiring 51% stake in
the company, INR14.65 crore has been infused by Huhtamaki in form
of equity capital.
Reputed clientele: HFP's is an approved vendor for reputed and
established clientele in the F&B industry and over the years
they have been able to generate sales from them.
Comfortable capital structure: With the change in ownership during
FY17, the new promoters have infused funds resulting in repayment
of old debt and comfortable solvency position.
Huhtamaki Foodservice Packaging India Pvt. Ltd (erstwhile known as
Valpack Solutions Private Limited (VSPL), incorporated in 2012 by
Mr. Vaibhav Garg and Mr. Param Gandhi, is engaged in the
manufacturing of paper products such as cups, buckets and lids
which find its applications in Food & beverages (F&B), FMCG,
Hospitality and other industries. HFP has its manufacturing
facility located at Bhiwandi, Maharashtra having an installed
capacity of 2448 lakhs units per annum for cups and 450 lakhs units
for lids.
IBD UNIVERSAL: ICRA Maintains D Rating in Not Cooperating
---------------------------------------------------------
ICRA said the rating for the INR54.00 crore bank facilities of Ibd
Universal Pvt. Ltd. continue to remain in the 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA]D ISSUER NOT
COOPERATING.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term-Fund 22.00 [ICRA]D ISSUER NOT COOPERATING;
Based TL Rating continues to remain
under 'ISSUER NOT COOPERATING'
category
Long Term-Fund 5.00 [ICRA]D ISSUER NOT COOPERATING;
Based/CC Rating continues to remain
under 'ISSUER NOT COOPERATING'
category
Long Term- 27.00 [ICRA]D ISSUER NOT COOPERATING;
Unallocated Rating continues to remain
under 'ISSUER NOT COOPERATING'
category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
IBDU was incorporated on July 15, 1999 as a private limited company
in the name of Indus Dwellings Pvt. Ltd. for development and
construction of apartments, houses, flats, rooms, bungalows,
markets, shopping complexes, townships or other building or
accommodation. The name of the company changed to IBD Universal
Private Limited on June 12, 2008. They have been actively involved
in construction and development of real estate over the last 15
years in Central India.
K.B. GEMS: Ind-Ra Migrates 'BB+' Issuer Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated K.B.Gems' (KBG)
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 action is:
-- INR240 mil. Fund-based cash credit migrated to non-cooperating
category with IND BB+ (ISSUER NOT COOPERATING) / IND A4+
(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
August 9, 2018. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Mumbai-based KBG is engaged in the processing and export of cut and
polished diamonds. It is a family-owned business.
KAMESHWAR INDUSTRIES: CARE Keeps D on INR8cr Debt on NonCooperating
-------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Kameshwar
Industries (KIND) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 8.45 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated August 29, 2018, placed the
ratings of KIND under the 'issuer non-cooperating' category as KIND
had failed to provide information for monitoring of the rating for
the rating exercise as agreed to in its Rating Agreement. KIND
continues to be non-cooperative despite repeated requests for
submission of information through phone calls and letter/email-s
dated June 24, 2019, June 25, 2019 and June 26, 2019. In line with
the extant SEBI guidelines, CARE has reviewed the ratings on the
basis of the best available information which however, in CARE's
opinion is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers
At the time of last rating on August 29, 2018, the following were
the rating weaknesses:
Key Rating Weaknesses
Ongoing delays in debt servicing: The rating assigned to the bank
facilities of KIND takes into account the fact that KIND has been
delaying in servicing its debt obligation.
Liquidity Analysis
The liquidity position of KIND remained weak marked by cash and
bank balance of INR0.06 crore as on March 31, 2017. Further, the
operating cycle of KIND stood at 130 days during FY17 as compared
to 88 days during FY16. Resultantly, average utilization of working
capital borrowings stood high at 90% for the past 12 months ended
September, 2017. Net cash flow from operating activities also stood
low at INR1.83 crore in FY17.
Kadi based (Gujarat) KIND was established in June, 2013 as a
partnership firm to carry on the business of cotton ginning and
pressing. It is currently managed by 6 partners and operates from
its sole manufacturing plant situated in Kadi, Gujarat with an
annual installed capacity of 66,00,000 Kg. of cotton bales and
1,25,00,000 Kg. of cotton seeds as on March 31, 2017. Partners
purchase raw material in bulk quantity from farmers locally.
KAVAN COTTON: ICRA Keeps D on INR41.5cr Loans in Non-Cooperating
----------------------------------------------------------------
ICRA said the ratings for INR41.50 crore bank facilities of Kavan
Cotton Private Limited continues to remain under 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA]D ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 40.00 [ICRA]D ISSUER NOT COOPERATING;
Cash Credit Rating continues to remain under
'Issuer Not Cooperating' category
Fund Based- 1.50 [ICRA]D ISSUER NOT COOPERATING;
Term Loan Rating continues to remain under
'Issuer Not Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity.
Incorporated in 2008, Kavan Cotton Private Limited is engaged in
the business of cotton ginning, pressing and crushing activities
with 40 ginning machines, 1 pressing machine and 11 expellers for
producing FP (fully pressed) bales and cottonseed oil with an
intake capacity of 42,240 MT per annum of raw cotton and 12,720 MT
per annum of cottonseeds. Apart from production, the company is
also involved in trading activities in cotton bales, cottonseeds,
cottonseed oil and oil cakes.
KISSAN POULTRY: ICRA Keeps D on INR13.6cr Loans in Not Cooperating
------------------------------------------------------------------
ICRA said the rating for the INR13.61-crore bank facility of Kissan
Poultry (India) Private Limited (KPIPL) continues to remain in
'Issuer Not Cooperating' category. The rating is denoted as
[ICRA]D; rating continues to remain in ISSUER NOT COOPERATING'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 10.00 [ICRA]D; ISSUER NOT COOPERATING;
Rating continues to remain in
'Issuer Not Cooperating' category
Term Loan 3.61 [ICRA]D; ISSUER NOT COOPERATING;
Rating continues to remain in
'Issuer Not Cooperating' category
ICRA has been seeking information from the entity to monitor its
performance. Despite repeated requests by ICRA, the entity's
management has remained non-cooperative. The current rating action
has been taken by ICRA based on the best available/dated/limited
information on the issuer's performance. Accordingly, lenders,
investors and other market participants are advised to exercise
appropriate caution while using this rating as it may not
adequately reflect the credit risk profile of the entity.
It is engaged in manufacturing of poultry feed and trading of day
old chicks and Eggs. The unit is in Jind District of Haryana. The
company started its commercial production in 2010 and has
production capacity of 210 tons per day. The day-to-day operations
of the company are managed by Mr. Tejbir Singh.
MAGPPIE EXPORTS: ICRA Lowers Rating on INR19.50cr Loan to D
-----------------------------------------------------------
ICRA has downgraded the rating of INR19.50 crore bank facilities of
Magppie Exports Private Limited (MEPL) to [ICRA]D Issuer Not
Cooperating from [ICRA]B with stable outlook. The rating continues
to remain under 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]D ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term-Fund 19.50 [ICRA]D ISSUER NOT COOPERATING;
Based-Cash Downgraded from [ICRA]B (Stable)
Credit continues to remain in issuer
not cooperating category
Rationale
The ratings downgrade follows the overdrawal of the drawing power
sanctioned by the banks for a period of more than 30 consecutive
days for bank facilities as per the information available in public
domain.
ICRA has been seeking information from the entity so as to monitor
its performance. Despite repeated requests by ICRA, the entity's
management has remained non-cooperative. The current rating action
has been taken by ICRA on the basis of the best
available/dated/limited information on the issuers' performance.
Accordingly, lenders, investors and other market participants are
advised to exercise appropriate caution while using this rating as
it may not adequately reflect the credit risk profile of the
entity.
Outlook: Not applicable
Key rating drivers
Credit strengths
Long track record in stainless-steel business: Established track
record of the company and management in its core trading business
of stainless-steel coils/sheets.
Credit challenges
Overdrawal of the drawing power sanctioned by the banks: The rating
downgrade follows the overdrawal of the drawing power sanctioned by
the banks for a period of more than 30 consecutive days for bank
facilities, which do not have scheduled repayment/maturity dates.
MEPL, incorporated in 1994, is engaged in the business of trading
of stainless steel coils/sheets. MEPL purchases stainless steel
coils/sheets and sells the same in the domestic market. The company
was initially catering to the requirement of stainless steel coils
for the promoter group company Magppie International Limited (MIL),
however over the years the company has developed a diversified
client base.
MAXIMAA SYSTEMS: CARE Moves D on INR8.3cr Loans to Not Cooperating
------------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Maximaa
Systems Limited (MSL) to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 6.33 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Short-term Bank 2.00 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated July 17, 2018, placed the
rating of MSL under the 'issuer non-cooperating' category as MSL
had failed to provide information for monitoring of the rating. MSL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a letter
dated July 12, 2019. In line with the extant SEBI guidelines, CARE
has reviewed the rating on the basis of the best available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating. The rating of MSL's bank facilities will
now be denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers
At the time of last rating on July 17, 2018, the following were the
rating strengths and weaknesses (updated for the information
available from Bombay Stock Exchange):
Key Rating Weaknesses
Delay in Debt Servicing: MSL's account has been classified as
Non-Performing Asset (NPA) by Bank of India on account of ongoing
delay in debt servicing.
Incorporated in 1990, Maximaa Systems Limited [(MSL) originally
established as a partnership firm in the year 1983] listed on the
Bombay Stock Exchange and is engaged in business of manufacturing
and trading of different types of industrial storage systems [i.e.
lockers, cupboards & steel furniture made of CRC sheets & is in the
form of slotted angles, panels of different specifications and
design for storing inventory] and IT services. Further the company
ventured into manufacturing pharmaceutical formulations making
ayurvedic in combination with probiotics.
MINI HOTELS: ICRA Keeps D on INR6.5cr Loan on Not Cooperating
-------------------------------------------------------------
ICRA said the rating for INR6.50 crore bank facilities of Mini
Hotels & Projects (MHP) continue to remain under 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA]D/D ISSUER
NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Unallocated 6.50 [ICRA]D/D ISSUER NOT
Bank COOPERATING; Rating continues
Faciliti to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
Mini Hotels and Projects (MHP), is a partnership firm, promoted by
Mr. P. Ravi Kumar and Ms. P. Padma on June 30, 2014. The firm has
renovated a multi storied building into a Hotel and branded as
"Hotel Aira". The hotel is situated in Benz circle, Vijayawada, a
prime location that annually draws tourists and corporate visitors
from all over the country. The land and super structure is owned by
the partners and the super structure is being leased out to MHP.
The hotel comprises of 7 Standard rooms, 29 Executive rooms, 4
Royal Suite, a Banquet Hall (accommodating 110 people) and
conference room. The hotel also has 80 seat fine dining restaurant
and 25 seat coffee shop. The hotel has commenced commercial
operations in the month of August 2016.
MY CAR PRIVATE: ICRA Lowers Rating on INR28.50cr Loan to D
----------------------------------------------------------
ICRA has downgraded the rating of INR28.5 crore bank facilities of
My Car Private Limited (MCPL) to [ICRA] D from [ICRA]BB- (with
Stable outlook. The rating continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based 28.50 [ICRA]D ISSUER NOT COOPERATING;
downgraded from [ICRA]BB-
(Stable) ISSUER NOT
COOPERATING; rating continues
in the 'Issuer Not Cooperating'
category
Rationale
The revision in rating is on account of irregularities in loan
repayment as per the information available in public domain.
ICRA has been seeking information from the entity so as to monitor
its performance. Despite repeated requests by ICRA, the entity's
management has remained non-cooperative. The current rating action
has been taken by ICRA on the basis of the best
available/dated/limited information on the issuers' performance.
Accordingly, lenders, investors and other market participants are
advised to exercise appropriate caution while using this rating as
it may not adequately reflect the credit risk profile of the
entity.
Going forward, the firm's ability to improve its liquidity position
and service its debt in a timely manner will be the key rating
sensitivity.
Incorporated in 2000 by Mr. Vijay Garg, MCPL is an authorised
dealer in Kanpur for passenger cars manufactured by Maruti Suzuki
India Limited (MSIL).
NAGARJUNA OIL: Haldia Petro Withdraws Appeal to Join in Revival
---------------------------------------------------------------
Business Standard reports that Haldia Petrochemicals on July 26
withdrew an appeal filed with the National Company Law Appellate
Tribunal (NCLAT) seeking its direction to participate in the
resolution and revival process of Nagarjuna Oil Corporation Ltd
(NOCL), which is carrying out a 6 million metric tonnes per annum
(MMTPA) petroleum and oil refinery project in Cuddalore.
With this, the interim stay on the liquidator calling for
expression of interest (EoI) for the revival of the project is
expected to proceed to the next stage, Business Standard relates.
The NCLAT had earlier issued an interim stay on the procedures
based on Haldia Petrochemicals' appeal, Business Standard says
citing sources.
According to Business Standard, NOCL had failed to get a successful
resolution plan in the Corporate Insolvency Resolution Process
(CIRP) and in December 2018, the National Company Law Tribunal
(NCLT), Chennai, ordered liquidation of the company, which is an
associate of Nagarjuna Oil Refinery Ltd (NORL).
Considering that the project could still go on if properly funded
and managed, there is one more opportunity for the revival of the
company through a scheme that has to be selected by the
liquidator.
Haldia Petrochemicals approached NCLAT alleging that certain
conditions have been imposed during the submission of the scheme,
which was not similar to the conditions that were imposed for the
resolution plan, Business Standard says. This was denied by the
liquidator's counsel.
Business Standard relates that the NCLAT bench observed that such
issues can be raised only when its scheme has not been accepted or
some other scheme is given preference over it.
The liquidator has to invite EoIs and finalise a scheme submitted
by any interested company, after considering various aspects. IBC's
liquidation sections provide for a revival through a competitive
bidding process on "as is where is" basis, said sources, Business
Standard relays.
It may be noted Haldia Petrochemicals and GP Global were the two
investors in the final round of resolution plan discussions
earlier, but the proposals fell short of the liquidation value of
INR1,450 crore, as reported earlier, the report notes. There are
around 15 lenders for NOCL.
About NORL
Hyderabad-based Nagarjuna Oil Refinery (NORL) holds 46.78% of the
equity share capital in NOCL, which is involved in setting up of a
refinery at Cuddalore in Tamil Nadu.
The National Company Law Tribunal's (NCLT) Chennai bench on July
25, 2017, appointed an Insolvency Resolution Professional (IRP) for
Nagarjuna Oil Corporation (NOCL) based on an application filed by
one of its creditors.
NHC FOODS: Ind-Ra Raises Long Term Issuer Rating to 'BB+'
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded NHC Foods
Limited's (NHCFL) Long-Term Issuer Rating to 'IND BB+' from 'IND
BB'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR3.10 mil. Term loan due on September 2018 withdrawn (paid
in full);
-- INR180.00 mil. (reduced from INR240.00 mil.) Fund-based
facilities Long-term rating upgraded; short-term rating
affirmed with IND BB+/Stable/IND A4+ rating.
KEY RATING DRIVERS
The upgrade reflects significant growth in NHCFL's revenue to
INR1,220.93 million in FY19 (FY18: INR841.22 million), owing to a
shift in the company's strategy towards expanding the customer base
rather than focusing on just a few major customers. Prior to FY19,
the company had been focused on the Yemen market, which frequently
had to face the brunt of political issues. As a result, NHCFL had
to experience a period of de-growth; subsequently, the company
decided to withdraw from the Yemen market and expand its geographic
reach. This change proved to be beneficial to NHCFL in FY19.
Although the revenue contribution from the global market fell by
14% YoY in FY19, this decline was more than compensated by the
remarkable revenue growth of 192% in the domestic market. Ind-Ra
expects the revenue to increase further in the near term owing to
the company's focus on expanding its brands i.e. Saaz, Indibite and
Eat'more in the global as well as domestic markets.
The ratings reflect the modest EBITDA margins due to the trading
nature of the business. The margin declined to 2.49% in FY19 (FY18:
3.10%) due to an increase in indirect costs, as NHC deals with
various commodities whose prices are fluctuating in nature. The
margins are likely to improve in the near term due to the company's
major focus on its own brands, especially the high-margin 'Saaz'
segment. Also, the margin is largely driven by export incentives
under the MEIS scheme. The return on capital employed stood at 5%
in FY19 (FY18:4%).
The rating factor in NHCFL's average credit metrics due to the
modest EBITDA margins. The metrics improved on a YoY basis in FY19,
mainly due to reduced debt levels (FY19: INR125.84 million; FY18:
INR187.48 million), and partially because of an increase in the
absolute EBITDA (FY19: INR30.40 million; FY18: INR26.04 million).
The interest coverage (operating EBITDA/gross interest expense) was
2.39x in FY19 (FY18: 1.66x) and the net leverage (net adjusted
debt/operating EBITDAR) was 3.77x (FY18:6.87x). Promoters' loan
constitutes 24% of the total debt level and is non-interest bearing
in nature; this provides some support to the company's net
leverage. With the scheduled repayment of the loan and the absence
of any CAPEX plans, the agency expects the credit metrics to
improve further in the near term.
The ratings are supported by the comfortable liquidity. The cash
flow from operations remained positive for the second consecutive
year at INR71.56 million in FY19 (FY18: INR46.68 million) as
against repayment obligation of an unsecured loan of INR14.88
million, which is scheduled to be fully repaid in FY20. Also, the
average maximum utilization of its fund-based limits was 71.51% for
the 12 months ended in June 2019. The cash and cash equivalents of
the company remained low at INR11.25 million in FY19 (FY18: INR8.51
million).
Additionally, NHCFL has a long-standing relationship of more than
four decades with the customers and suppliers owing to its long
track record of operations, which helps the company secure repeat
orders.
Furthermore, the ratings are supported by the promoters' experience
of more than three decades in the processing and trading business.
RATING SENSITIVITIES
Negative: An increase in the working capital requirements and
tightening of the liquidity profile along with the interest
coverage reducing below 2.0x would be negative for the ratings.
Positive: Substantial improvement in revenue and profitability,
while maintaining the working capital cycle, would be positive for
the ratings.
COMPANY PROFILE
NHCFL was incorporated in 1960 by Mr. Himatlal Shah. The company is
engaged in the processing and trading of spices, food grains, and
ready-to-eat snacks. The company's processing unit has an installed
capacity of 18,900MTPA.
POWER TELEVENTURES: CARE Maintains D Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Power
Televentures Private Limited (PTPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 15.80 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Long-term/ 8.00 CARE D/CARE D; ISSUER NOT
short-term COOPERATING; Based on best
Bank Facilities Available information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated July 3, 2018, placed the
ratings of PTPL under the 'issuer non-cooperating' category as PTPL
had failed to provide information for monitoring of the rating.
PTPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated July 2, 2019 and July 8, 2019. Further, PTPL has
not provided monthly 'No Default Statements (NDS)' for past more
than 12 months. In line with the extant SEBI guidelines, CARE has
reviewed the ratings on the basis of the best available information
which however, in CARE's opinion is not sufficient to arrive at a
fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Detailed description of the key rating drivers
At the time of last rating on July 3, 2018, the following was the
rating weakness.
Key Rating Weakness
Overdrawing in cash credit limits for more than 30 consecutive
days: The company used to act as an authorized distributor cum
stocking agent for Proctor & Gamble Home Products Ltd, Products &
Gamble Hygiene & Health Care Ltd and Gillette India Ltd (together
referred to as P&G). However, recently the company has lost the
distributorship of P&G which has led to fall in revenue and in turn
led to overdrawn in cash credit limits.
Incorporated in June 2005, PTPL is a Bhopal based company
incorporated by Mr. Aseem Singh and his family members. The company
used to act as an authorized distributor cum stocking agent of P&G
for eastern and southern Madhya Pradesh including Bhopal and
Gwalior.
RCI INDUSTRIES: Ind-Ra Lowers Long Term Issuer Rating to 'D'
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded RCI Industries &
Technologies Limited's (RCI) Long-Term Issuer Rating to 'IND D'
from 'IND BBB'. The Outlook on the earlier rating was Stable.
The instrument-wise rating actions are:
-- INR500 mil. Proposed long-term loan* downgraded with
Provisional IND D rating;
-- INR1.010 bil. Fund-based limits (long-term) downgraded with
IND D rating;
-- INR250 mil. Proposed fund-based limits* (long-term) downgraded
with Provisional IND D rating; and
-- INR1.090 bil. Non-fund-based limits (short-term) downgraded
with IND D rating.
*The ratings are provisional and shall be confirmed upon the
sanction and execution of the loan documents for the above
facilities by RCI to the satisfaction of Ind-Ra.
KEY RATING DRIVERS
The downgrade reflects the devolvement of the letter of credit for
a period exceeding 30 days as on date due to cash flow mismatches.
RATING SENSITIVITIES
Positive: Timely debt servicing for at least three consecutive
months could result in a positive rating action.
COMPANY PROFILE
Incorporated in 1992, RCI is listed on the Bombay Stock Exchange.
The company manufactures copper wires [24,000 million ton (mt)
capacity], copper/brass strips (15,000mt capacity) and TIN solder
strips/bars (1,200mt capacity). Its products include annealed
copper wire, bunched copper wires ropes and copper ingots.
SACHDEVA AND SONS: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Sachdeva and Sons Rice Mills Ltd
17-Cantonment Amritsar
Amritsar, Punjab 143001
Insolvency Commencement Date: July 29, 2019
Court: National Company Law Tribunal, Panchkula Bench
Estimated date of closure of
insolvency resolution process: January 24, 2020
Insolvency professional: Hemanshu Jetley
Interim Resolution
Professional: Hemanshu Jetley
Ducturus Resolution Professionals Pvt.
Ltd.
SCO-131, 2nd Floor, MDC
Sector-5, Panchkula
Haryana 134119
E-mail: hejetley@gmail.com
ip.sachdevarice@gmail.com
Mobile: 090417-00000
073411-05243
Last date for
submission of claims: August 12, 2019
SARGAM METALS: ICRA Keeps D on INR41cr Bank Loans in NonCooperating
-------------------------------------------------------------------
ICRA said the ratings for the INR41.00 crores bank facilities of
Sargam Metals Private Limited continue to remain in the 'Issuer Not
Cooperating' category. The long-term rating is denoted as "[ICRA]D;
ISSUER NOT COOPERATING" and the short-term rating is denoted as
"[ICRA]D; ISSUER NOT COOPERATING". ICRA had earlier moved the
ratings of Sargam Metals Private Limited to the 'ISSUER NOT
COOPERATING' category due to non-submission of monthly 'No Default
Statement' ("NDS").
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 30.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund Based Rating continues to remain in
Facilities the 'Issuer Not Cooperating'
category
Long Term- 2.50 [ICRA]D; ISSUER NOT COOPERATING;
Fund Based Rating continues to remain in
Term Loan the 'Issuer Not Cooperating'
category
Short Term- 8.50 [ICRA]D; ISSUER NOT COOPERATING;
Non-Fund Based Rating continues to remain in
Facilities the 'Issuer Not Cooperating'
category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
information on the issuers' performance. Accordingly, the lenders,
investors and other market participants are advised to exercise
appropriate caution while using this rating as the rating may not
adequately reflect the credit risk profile of the entity.
Incorporated in 1970, Sargam Metals Private Limited is primarily
engaged in manufacture of aluminium, zinc and manganese ingots
(contributes to ~85% of total revenues), which are used as raw
materials in foundries for producing cast products. SMPL is also
engaged in manufacture of cathode protection products, which are
used in ships, off-shore structures such as platforms, sub-sea
pipelines and structures such as jetty, wharves and barges. The
company has an alloy production facility with an installed capacity
of 7800 MT in SIPCOT Industrial estate in Cheyyar (Tamil Nadu)
recently shifted from Manapakkam, Chennai. The company is managed
by Mr. S Arun and is closely held by the promoter group.
SHREE RR PIPES: CARE Maintains D Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shree R. R.
Pipes continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 10.00 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated December 25, 2018 placed the
rating of Shree R. R. Pipes under the 'issuer noncooperating'
category as Shree R. R. Pipes had failed to provide information for
monitoring of the rating. Shree R. R. Pipes continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls July 12, 2019. In line
with the extant SEBI guidelines, CARE has reviewed the rating on
the basis of the best available information which however, in
CARE's opinion is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The ratings takes into account the ongoing delays in the servicing
of interest obligations due to stressed liquidity position.
Shree R.R.Pipes, a unit of RKD Pipes Private Limited (RKD)
established as a firm in 2012 by Mr. Sharad Gupta. The firm was
taken over by RKD pipes Private Limited (incorporated in 2012). RRP
is operating under RKD which has no other business activity. Mr.
Sharad Gupta and Ms. Ritu Agarwal are managing the operations of
RRP who are also director in RKD. The firm is primarily engaged in
trading of PVC tubes, GI pipes, Mild steel tubes etc. The firm has
authorized distributorship of Jindal Industries Limited for NCR and
UP and some areas of Uttaranchal. It also has dealership of Jindal
Steels Limited. The firm has dealership network of around 70-80
dealers.
SILK WOVEN: ICRA Withdraws 'D' Ratings on INR6.5cr Loans
--------------------------------------------------------
ICRA has withdrawn the long-term rating of [ICRA]D ISSUER NOT
COOPERATING assigned to the INR6.50 crore bank facilities of Silk
Woven Sack Pvt. Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based-Cash 1.50 [ICRA]D; ISSUER NOT COOPERATING;
Credit Limit Withdrawn
Fund-based- 5.00 [ICRA]D; ISSUER NOT COOPERATING;
Term Loan Withdrawn
Rationale
The ratings assigned to Silk Woven Sacks Pvt. Ltd. have been
withdrawn at its request based on the no objection certificate
provided by its banker.
Outlook: Not applicable
Key rating drivers
Key Rating drivers has not been captured as the rated instrument(s)
are being withdrawn.
Established in 2014, Silk Woven Sacks Pvt. Ltd. is engaged in the
business of manufacturing PP woven fabric. SWSPL is promoted by Mr
Darshan Jivani, Mr Divyesh Rangani, Mr Jaymin Rangani and Mr
Jitenkumar in the company. SWSPL operates from its plant located
near Rajkot with a total installed capacity 2500 MT per annum.
SWSPL manufactures PP fabric rolls ranging between 35 GSM to 150
GSM and size ranging from 12 inches to 36 inches; which it sells to
various through dealers and distributors across Gujarat.
SIZZLING BEVERAGES: ICRA Puts D Rating on Notice of Withdrawal
--------------------------------------------------------------
ICRA has put the issuer rating outstanding of [ICRA]D (Issuer
Non-Cooperation) for Sizzling Beverages Private Limited (SBPL) on
notice of withdrawal for a period of 30 days. The withdrawal is at
the request of the company and in accordance with ICRA's policy on
withdrawal and suspension. The ratings would be withdrawn after 30
days.
SBPL bottles various soft drinks, fruit based drinks, and packaged
drinking water under its own brand "Jingle", with the major ones
being Jingle Cola, Jingle Lemon, Jingle Orange, Jingle Brite,
Jingle Mango Drink etc. The products are sold in polyethylene
terephthalate (PET) bottles of sizes between 250 millilitres and 2
litres. The PET bottles are made in house. SBPL has its
manufacturing unit at Meerut spanning an area of 15,000 square
feet.
SUPERIOR FOOD: CARE Lowers Rating on INR25.69cr Loan to 'C'
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Superior Food Grains Private Limited (SFGPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 25.69 CARE C; Stable Revised
Facilities from CARE D;
(Term Loan)
Long term Bank 40.00 CARE C; Stable Reaffirmed;
Facilities Outlook revised from Negative
(Fund Based) to Stable
Short term Bank 2.00 CARE A4 Reaffirmed
Facilities
(Non-Fund Base)
Detailed Rationale & Key Rating Drivers
The revision in the rating assigned to the long-term bank
facilities (Term Loan) of SFGPL takes into account improvement in
the debt servicing track record of the company. The ratings
continue to derive strength from experienced promoters and
long-term Power Purchase Agreement (PPA) with Uttar Pradesh Power
Corporation Limited (UPPCL).
The ratings, however, remain constrained by the history of delays
in servicing the debt obligations, weak financial risk profile,
stretched liquidity position and cyclicality & agro-climatic risk
associated with the sugar industry.
Going forward, SFGPL's ability of the company to generate accruals
as envisaged, timely service its debt obligations, while improving
its overall solvency and liquidity position will remain the key
rating sensitivities. Further, timely infusion of funds by the
promoters to support various business requirements will also remain
a key rating sensitivity.
Outlook: Stable
The revision in the outlook from 'Negative' to 'Stable' is on the
expectation of improvement in the liquidity profile of the company.
With expected improvement in the cash accrual generation and
proposed fund infusion by the promoters, the liquidity profile of
the company is expected to improve going forward. The outlook may
be revised to 'Negative' if the cash accruals generated are less
than envisaged. In addition, timely fund infusion by the promoters
will also remain a key rating sensitivity.
Detailed description of the key rating drivers
Key Rating Strengths
Improvement in the debt servicing track record: Owing to the
stretched liquidity position of the company, there were delays in
servicing of the repayment obligations of the term loans. However,
the conduct of the term loan accounts has remained satisfactory
since March-2019.
Experienced promoters: SFGPL is promoted by Mr. Rana Inder Pratap
Singh, Mr. Rana Karan Pratap Singh and Mr. Rana Preet Inder Singh.
Mr. Rana Inder Pratap Singh and Mr. Rana Karan Pratap Singh have an
experience of around 15 and 10 years, respectively, in the sugar
industry through their association with SFGPL and other group
concerns of the company. Mr. Rana Preet Inder Singh (director) has
an experience of around 8 years in the sugar industry.
Long-term power offtake arrangement in the form of Power Purchase
Agreement (PPA): SFGPL is engaged in the manufacturing of sugar as
well as generation of power through the by-product of the sugar
manufacturing process viz. bagasse. The company has a power
generation capacity of 33 MW. The company uses the power generated
for captive consumption and the surplus power is sold to UPPCL
(Uttar Pradesh Power Corporation Limited) under long-term PPA of 25
years which is valid from Jan-2017 till Jan-2042. In FY19
(Provisional; refers to the period April 1 to March 31), the income
from the power segment constituted ~18% of total operating income
of SFGPL.
Key Rating Weaknesses
History of delays in the servicing of the debt obligations: Owing
to the stretched liquidity position of the company and cash flow
mismatches, there were delays in the servicing of the repayment
obligations for the term loans availed. There have also been
instances of overutilization of cash credit limit in the past. The
same were, however, settled within 30 days. However, since
March-2019, the conduct of the accounts has remained satisfactory
with no delays in the servicing of the debt obligation.
Weak financial risk profile: The capital structure of SFGPL
continued to remain leveraged with long term debt-toequity
ratio and overall gearing ratio of 22.68x and 26.38x, respectively,
as on March 31, 2019 (Provisional) as compared to 22.71x and 23.69x
respectively, as on March 31, 2018. To support the clearance of
sugarcane dues to the farmers, the company has been sanctioned a
soft-loan of INR93.58 Cr. from the Uttar Pradesh Government. The
loan amount was fully availed in FY19 (Provisional) and were used
to settle the past dues of the farmers (sugar). Despite this, the
long term debt to equity ratio remained on previous year's levels
on account of accretion of profits to
networth, repayment of unsecured loans infused by promoters and
related parties.
Furthermore, the total debt to GCA ratio also stood weak at 23.91x,
as on March 31, 2019 (Provisional) while the interest coverage
ratio of the company stood at 1.43x in FY19 (Provisional).
SFGPL reported a total income of the company of INR268.80 Crore in
FY19 (Provisional) which remained almost at previous year's level.
Further, the PBILDT margins remained at previous year's level at
13.97% in FY19 (Provisional; PY: 13.87%). The PAT margins remained
low at 0.76% in FY19 (Provisional) though improved from 0.05% in
FY18 owing to decline in interest expenses incurred.
Stretched liquidity position: The overall liquidity profile of the
company has remained stretched. Though the operating cycle of SFGPL
shortened to (-)7 days as on March 31, 2019 (Provisional) as
compared to (-)23 days as on March 31, 2018, this was mainly on
account of elongation of its creditor days (mainly pertaining to
sugar dues towards the farmers). The average utilization of cash
credit limits also remained high at ~95% for the twelve months
period ended May-2019. Furthermore, there have also been instances
of cash credit limit overutilization in the past. The same were,
however, settled within 30 days. SFGPL has repayment obligation of
INR52.84 Crore for FY20 and the same is proposed to be met through
the internal accruals and infusion of unsecured loans by promoters
and related parties. The current and quick ratios of the company
stood weak at 0.85x and 0.22x respectively as on March 31,
2019(Provisional). The firm had free cash and bank balances of
INR3.02 Crore, as on March 31, 2019(Provisional). Going forward,
the ability of the company to generate cash accruals as envisaged
and timely infusion of funds by the promoters will remain the key
rating sensitivities.
Cyclicality and agro-climatic risk associated with the sugar
industry: Sugarcane is the key raw material used for the
manufacturing of sugar and sugar-related products. The availability
and yield of sugarcane depends on factors like rainfall,
temperature and soil conditions, demand-supply dynamics, government
policies, etc. The production of sugarcane and hence sugar is
cyclical in nature while the seasonality of the business has a
significant impact on the profitability and sustainability of sugar
mills.
SFGPL was incorporated in January-2007 and is being managed by Mr.
Rana Inder Pratap Singh, Mr. Rana Karan Pratap Singh (brother of
Mr. Rana Inder Pratap Singh) and Mr. Rana Preet Inder Singh (cousin
of Mr. Rana Inder Pratap Singh). The company is engaged in the
manufacturing of sugar since September-2014 with a total installed
crushing capacity of 5,000 tonnes per day (TPD) as on March 31,
2019. The company is also operating a bagasse-based power plant of
33 MW.
SUZUKI TEXTILES: CARE Keeps D on INR164cr Loans in Not Cooperating
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Suzuki
Textiles Limited (STL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 143.87 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Short-term Bank 20.23 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated August 28, 2018, placed the
ratings of STL under the 'issuer non-cooperating' category as STL
had failed to provide information for monitoring of the rating. STL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated July 8, 2019. In line with the extant SEBI
guidelines, CARE has reviewed the ratings on the basis of the best
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Detailed description of the key rating drivers
At the time of last rating on August 28, 2019, the following were
the rating weaknesses (updated for the information available from
MCA website).
Key Rating Weaknesses
On-going delays in debt servicing: Debt servicing of STL is
irregular as reflected by delays in servicing obligation. With
disrupted operations (post fire incident) has resulted into acute
liquidity stress which also led to delays in debt servicing
and there are ongoing delays.
Suspension of manufacturing operation due to fire leading to
stressed financial profile: STL is undergoing acute liquidity
stress as an aftermath of fire incident that had taken place at its
manufacturing facility during March 2016. The fire
incident had destroyed both raw material and finished goods
inventory at its premises along with substantial damage to its
factory building.
Liquidity analysis: Liquidity of STL is weak due to cash loss
incurred by it in past three years ended FY18. CARE had sought
latest updates on liquidity available with STL to gauge its
forthcoming debt servicing capability including scheduled debt
repayments. However, despite numerous requests, the company has not
shared requisite information in this regard. In absence of
availability of latest updates on the liquidity of the company such
as monthly working capital utilization, it is difficult to take
cognizance of any liquidity which could be available to bridge any
operational cash flow mismatches.
STL is a Bhilwara based closely held public limited company
incorporated in 1986 and has an operational track record of more
than two decades. STL has one of the largest installed weaving
capacities in India and also enjoys location advantage being
situated in Bhilwara, a hub for the textile industry. STL operates
in three basic segments - suiting & shirting, yarn (polyester
cotton & cotton) and readymade garments.
VIJIT INTERNATIONAL: CARE Cuts Ratings on INR7cr Loans to 'D'
-------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Vijit International Private Limited (VIPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 6.00 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Short-term Bank 1.00 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information VIPL to monitor the rating vide
e-mail communications/letters dated June, 7 2019 June 10, 2019,
June 12, 2019 and numerous phone calls. However, despite our
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. Further, the banker
could not be contacted. The rating on VIPL's bank facilities will
now be denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Detailed description of the key rating drivers
At the time of last rating in September 17, 2018 the following were
the rating strengths and weaknesses. (Updated the information
available from Ministry of Corporate Affairs).
Ongoing delays in debt servicing: There is on-going delay in debt
servicing of the company. As per the interaction with the banker as
on September 13, 2018, there is continuous overdrawing in the cash
credit account for more than 60 days.
Liquidity position: Comment on liquidity is not available due to
non-cooperation by the company and also due diligence with the
banker is not available due to non-cooperation by the company.
Vijit International Private Limited (VIPL) was incorporated in
October 2000 and it was taken over by Mrs. Prity Sharma and Mr.
Madhusudan Agarwalla in July 2015. The company is engaged in
trading of iron and steel products like coils, angles, channels,
pipes and TMT bar etc.
[*] INDIA: Lok Sabha Passes Amendments to Bankruptcy Code
---------------------------------------------------------
India Today reports that Lok Sabha or House of the People on August
1 passed amendments to the Insolvency and Bankruptcy Code, with the
government asserting that the spirit behind the law is not to allow
companies to die.
India Today relates that Rajya Sabha has already passed the bill
and with its passage in the lower house, the Insolvency and
Bankruptcy Code is set to be amended.
Responding to the debate on the bill, Finance and Corporate Affairs
Minister Nirmala Sitharaman said the liquidation of a company is
not the sole agenda of the Insolvency and Bankruptcy Code, the
report relays.
As many as seven sections of the Code are to be amended, India
Today notes. Once the Corporate Insolvency Resolution Process
(CIRP) begins, it has to be completed in 330 days, including
litigation stages and judicial process, the minister said, citing
proposed amendments, India Today adds.
===============
M A L A Y S I A
===============
BARAKAH OFFSHORE: Unit Sues Petronas Over Licence Suspension
------------------------------------------------------------
The Star Online reports that Barakah Offshore Petroleum Bhd said
wholly owned unit PBJV Group Sdn Bhd is suing Petroliam Nasional
Bhd (Petronas) for RM1.02 billion.
According to The Star Online, the PN 17 company, in a filing with
Bursa Malaysia on August 6, said PBJV has issued a notice of demand
and dispute on August 5 to both Petronas and Petronas Carigali Sdn
Bhd after the company's licence was suspended by Petronas for three
years.
The Star Online relates that the suspension, issued on July 8,
Barakah said was based on grounds of adverse reports of PBJV's
performance under a contract referred to as "provision for
underwater services for Petronas Carigali."
"This suspension was issued post completion of the contract," it
said.
In response to the suspension, PBJV has issued a notice of demand
and dispute on August 5 where it disputed the validity of the
suspension being issued without any legal justification nor
compliance to procedures, the report relays.
"The contract has been successfully carried out and completed prior
to the suspension," Barakah, as cited by The Star Online, said.
"Upon completion of the contract, positive appraisal was
subsequently given by Petronas Carigali hence making the suspension
unwarranted," it added.
According to the report, Barakah said the company the amount of
MYR1.02 billion was based on the loss of future profits, reputation
and shares' market price.
The company, last week, was forced to abort a debt restructuring
plan following the suspension of PBJV's licence by Petronas, the
report says.
With the licence suspended, PBJV is unable to undertake or bid for
new contracts from Petronas, The Star Online adds.
About Barakah Offshore
Barakah Offshore Petroleum Berhad, an investment holding company,
provides offshore and onshore pipeline services for the oil and gas
industry primarily in Malaysia.
In May 2019, Barakah Offshore Petroleum Bhd slipped into Practice
Note 17 (PN17) after it failed to make instalment payments to
Export-Import Bank of Malaysia Bhd (Exim Bank) and was unable to
provide a solvency declaration to Bursa Malaysia Securities Bhd.
=================
S I N G A P O R E
=================
HONESTBEE: Seeks Court Protection, Owes Creditors US$180MM
----------------------------------------------------------
Inside Retail Asia reports that sinking in debts of around US$180
million, Singapore grocery retailer Honestbee is seeking court
protection from creditors to allow it to restructure.
According to the report, the company has applied to the High Court
to commence a process which reportedly would give it six months
protection from creditors lodging winding up procedures or other
legal attempts to recover what they are owed.
News of the move surfaced late on August 2 at the same time the
company confirmed it was laying off 38 staff in Singapore, the
report says.
"As a result of our reduced operations globally, the company has
made a decision to rightsize the company in order to cut costs and
streamline its business," Inside Retail Asia quotes a spokesman as
saying in a statement to the Straits Times. "The move is necessary
to ensure that the company has the right structure in place for
long-term stability and success."
Inside Retail Asia says the news came one week after the company
announced the appointment of a new CEO, Ong Lay Ann, who has
actually been in the role since July 15, taken over from interim
CEO and investor Brian Koo, who remains chairman. That followed the
resignation of CTO and co-founder Jonathan Low four days earlier.
Mr. Koo is also a founding partner in Formation Group, one of
Honestbee's largest creditors. Mr. Koo is part of the family which
owns South Korean industrial giant LG. Parties associated with the
Koo family are said to be owed as much as $50 million by Honestbee,
the report notes.
In a statement, Honestbee said a court-supervised restructuring
would allow management to focus on re-evaluating the business free
from interference, to streamline operations, improve efficiencies
and reduce overheads, Inside Retail Asia relays.
"As part of the restructuring process, Honestbee will work closely
with their advisers, creditors and stakeholders to achieve the best
possible outcome for all interested parties," the company said.
Headquartered in Singapore, honestbee is an online grocery and food
delivery service as its core business, a concierge service, and
also a parcel delivery service for its B2B clients.
MANHATTAN RESOURCES: Posts SGD895,000 Net Loss in Q2
----------------------------------------------------
Vivienne Tay at The Business Times reports that Manhattan Resources
has narrowed its second quarter net loss to SGD895,000, from SGD1.8
million a year ago, on the back of cost cuts after it disposed its
vessels last year.
The mainboard-listed firm's loss per share (LPS) for the period
stood at a 0.08 Singapore cent, from 0.32 cent a year ago. No
dividend has been declared for the quarter, unchanged from a year
ago.
For the second quarter, revenue fell 57 per cent to SGD3.2 million,
from SGD7.4 million a year ago, from the disposal of vessels in
November 2018. Shipping revenue also fell to SGD300,000 from SGD4.4
million a year ago.
The group's power plant segment saw a net profit of SGD200,000,
compared with a net loss of SGD1.3 million a year ago, mainly from
higher sales and decrease in coal expenses.
The company had also saw a decrease in finance cost and a decrease
in maintenance cost incurred for its power plant, offset by
increases in operation and maintenance fees.
For the first half of 2019, Manhattan Resources narrowed its net
loss to SGD2.8 million, from SGD4.3 million a year ago. LPS stood
at 0.25 Singapore cent, from 0.75 cent a year ago. Revenue
meanwhile, fell 50 per cent to SGD7.2 million, from SGD14.3 million
a year ago.
In a separate update on its financial position and efforts to
satisfy the minimum trading price (MTP) exit criterion, the group
said it would continue to make efforts and consider various options
to meet the requirements of the financial exit criteria and MTP
exit criterion of the Singapore Exchange's listing rules.
"The company will continue to concentrate its resources and efforts
towards the existing business and will focus on creating stable
revenue base and optimising operational efficiency and cost
effectiveness," it added.
Manhattan Resources, Inc. operates as a recruiting and advisory
services firm. The Company offers executive search, interim
professionals, and business solutions. Manhattan Resources serves
oil and gas, retail energy, power and utilities, petrochemicals,
finance, manufacturing and distribution, legal, engineering, and
construction Industries.
*********
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 ***