/raid1/www/Hosts/bankrupt/TCRAP_Public/191230.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
Monday, December 30, 2019, Vol. 22, No. 0
Headlines
A U S T R A L I A
AI AQUA ZIP: Moody's Affirms B2 Rating on First Lien Secured Loans
EVOLVE BUILDING: First Creditors' Meeting Set for Jan. 7
M & A POLIMENI: First Creditors' Meeting Set for Jan. 7
PACIFIC BAUXITE: First Creditors' Meeting Set for Jan. 7
RESTORED CLASSICS: First Creditors' Meeting Set for Jan. 7
C H I N A
HENGFENG BANK: Former Chairman Set for Life in Jail
[*] CHINA: Corporate Defaults in 2019 Up to Record High $18.6BB
I N D I A
AIRCEL CELLULAR: CARE Keeps D on INR17,479cr Debt in NonCooperating
AIRCEL LIMITED: CARE Keeps D on INR17,479cr Debt in Not Cooperating
AIRCEL SMART: CARE Keeps D on INR17,479cr Debt in Not Cooperating
AJIT CONSTRUCTION: CARE Lowers Rating on INR3.5cr Loan to 'D'
ALPINE WINERIES: Insolvency Resolution Process Case Summary
ALVI TECH: CARE Lowers Rating on INR5.50cr LT Loan to 'D'
BAMBINO PASTA: Ind-Ra Affirms & Withdraws 'BB+' LT Issuer Rating
BBN FOODS HI-TECH: Insolvency Resolution Process Case Summary
BRIPANIL INDUSTRIES: Insolvency Resolution Process Case Summary
CROSS LINK: Insolvency Resolution Process Case Summary
DABRA AGRO: CARE Lowers Rating on INR24cr LT Loan to 'D'
DHARAMRAJ CONTRACTS: Ind-Ra Migrates 'D' Rating to Non-Cooperating
DISHNET WIRELESS: CARE Maintains 'D' Rating in Not Cooperating
DUCKBILL DRUGS: Insolvency Resolution Process Case Summary
DUNCANS INDUSTRIES: Insolvency Resolution Process Case Summary
DURGASHREE CASHEWS: CARE Lowers Rating on INR6cr LT Loan to D
ECS BIZTECH: Insolvency Resolution Process Case Summary
GOOUKSHEER FARM: Insolvency Resolution Process Case Summary
GROMET (INDIA): Insolvency Resolution Process Case Summary
HIMSHILA FERRO: CARE Assigns 'D' Rating to INR6.53cr LT Loan
HYDERABAD RING: CARE Keeps D on INR185cr Debt in Not Cooperating
IL&FS: Market Regulator Fined Two Credit Rating Agencies
INTEGRATED LIVESTOCK: Insolvency Resolution Process Case Summary
JET AIRWAYS: Creditors to Seek Fresh Initial Bids
KALEESWARA GINNING: ICRA Keeps D Debt Ratings in Not Cooperating
KG FOUNDATIONS: ICRA Lowers Rating on INR20cr LT Loan to B+
KNK CONSTRUCTION: Insolvency Resolution Process Case Summary
KRISHNA INDUSTRIAL: Insolvency Resolution Process Case Summary
KRP INFRASTRUCTURES: Insolvency Resolution Process Case Summary
MA SARADA: ICRA Keeps D on INR4.01cr Loan in Not Cooperating
NUCON PNEUMATICS: ICRA Keeps C on INR15cr Debt in Not Cooperating
ORIENT GREEN: ICRA Reaffirms D Rating on INR8cr Term Loan
POBI TECHNOLOGIES: Insolvency Resolution Process Case Summary
PRAKASH SHELLAC: Ind-Ra Lowers LongTerm Issuer Rating to 'D'
PREMIER SECURITY: Insolvency Resolution Process Case Summary
R K M POWERGEN: ICRA Reaffirms D Rating on INR1,254.27cr Loan
RATHI ISPAT: Insolvency Resolution Process Case Summary
RCBS REALTY: Insolvency Resolution Process Case Summary
RLJ CONCAST: ICRA Maintains 'D' Debt Rating in Not Cooperating
ROHIT'S HERITAGE: Ind-Ra Lowers Long Term Issuer Rating to 'D'
S A IRON: ICRA Lowers Rating on INR39.50cr Loan to 'D'
SAISONS TRADE: ICRA Lowers Rating on INR5cr Debentures to 'D'
SATNAM INDUSTRIES: Ind-Ra Lowers LongTerm Issuer Rating to 'D'
SHARMA PHARMACEUTICAL: Ind-Ra Moves 'B+' Rating to Non-Cooperating
SHETRON LIMITED: Ind-Ra Moves BB Issuer Rating to Non-Cooperating
SHREE AMBIKA: Insolvency Resolution Process Case Summary
SKYLINE MILLARS: ICRA Keeps D on INR6cr Loans in Not Cooperating
VENKATESA PAPER: Insolvency Resolution Process Case Summary
VISHNUSHIVA INFRASTRUCTURES: ICRA Cuts INR10cr Loan Rating to D
WOOLWAYS LIMITED: ICRA Keeps D on INR10cr Debt in Not Cooperating
J A P A N
JAPAN DISPLAY: Considers Selling Key Plant to Apple and Sharp
S I N G A P O R E
HYFLUX LTD: Axes Old Agreement with Mitsubishi on TuasOne Project
LIBRA GROUP: Supplier Yick Hoe Files Winding Up Petition vs. Unit
- - - - -
=================
A U S T R A L I A
=================
AI AQUA ZIP: Moody's Affirms B2 Rating on First Lien Secured Loans
------------------------------------------------------------------
Moody's Investors Service affirmed the ratings of AI Aqua Merger
Sub, Inc. including the company's Corporate Family Rating at B3,
and Probability of Default Rating at B3-PD. Moody's also affirmed
the B2 ratings on the first lien senior secured credit facilities
issued by the company and its Australian subsidiary AI Aqua Zip
Bidco Pty Ltd., and the Caa2 rating on the company's second lien
senior secured credit facility. At the same time, Moody's changed
the company's outlook to stable from negative and assigned a stable
outlook to the AI Aqua Zip Bidco Pty Ltd.
On December 23, 2019, Culligan announced that it had entered into a
definitive merger agreement to acquire AquaVenture Holdings Limited
(AquaVenture) for $27.10 per share, in a transaction valued at
approximately $1.1 billion. Culligan will fund the acquisition with
proceeds from a proposed $500 million incremental first lien term
loan along with a significant new equity contribution from the
company's financial sponsors Advent International and Centerbridge
Partners. Moody's estimates pro forma for the transaction
Culligan's financial leverage on a debt/EBITDA basis at 6.8x and
EBIT/interest coverage at around 2.0x for the twelve months period
ending September 30, 2019, compared to 7.3x and 1.6x respectively
on a standalone basis as of the same period. The transaction is
expected to close in April 2020.
"Today's ratings affirmation and outlook change to stable reflects
the deleveraging nature of the proposed transaction given the
material equity contribution from the financial sponsors, and our
expectation that the sponsors will continue to support Culligan's
acquisition growth strategy with equity contributions to maintain
debt-to-EBITDA leverage below 7.0x" said Moody's lead analyst
Oliver Alcantara. "The acquisition makes strategic sense because it
bolsters Culligan's market position in the highly fragmented US
office bottle free cooler sector, adds both revenue and geographic
diversification given AquaVentures' Seven Seas operations, and
creates cross-sell and synergy opportunities." added Alcantara. All
ratings are subject to Moody's review of final documentation.
Affirmations:
Issuer: AI Aqua Merger Sub, Inc.
Corporate Family Rating, Affirmed B3
Probability of Default Rating, Affirmed B3-PD
Gtd Senior Secured First Lien Revolving Credit Facility, Affirmed
B2 (LGD3)
Gtd Senior Secured First Lien Term Loan, Affirmed B2 (LGD3)
Gtd Senior Secured Second Lien Term Loan, Affirmed Caa2 (LGD5)
Issuer: AI Aqua Zip Bidco Pty Ltd.
Senior Secured First Lien Term Loan, Affirmed B2 (LGD3)
Outlook Actions:
Issuer: AI Aqua Merger Sub, Inc.
Outlook, Changed To Stable From Negative
Issuer: AI Aqua Zip Bidco Pty Ltd.
Outlook, Assigned Stable
RATINGS RATIONALE
Culligan's B3 CFR broadly reflects the company's high financial
leverage, weak quality-of-earnings, aggressive growth through
acquisition strategy that pressures free cash flow generation, and
the relatively short history of operating at the post acquisition
revenue and operating scope with revenue more than tripling since
December 2016 leverage buyout. Pro forma for the proposed
acquisition of AquaVenture financial leverage is high with
debt/EBITDA at around 6.8x for the twelve months period ending
September 2019. Both companies' aggressive growth through
acquisitions strategy, which is expected to continue, adds
volatility to leverage and results in large amounts of ongoing pro
forma add-backs to reported EBITDA. Moody's estimates the company's
pro forma debt-to-EBITDA leverage on a reported basis is in excess
of 12x. Furthermore, a material portion of these add-backs involve
cash flows that weaken free cash flow, and the magnitude of the gap
between reported and the company's adjusted results create sizable
variation around projected credit metrics and free cash flow. As
the company integrates the proposed and past acquisitions and grows
in scale, a reduction in future acquisition related costs should
support positive free cash flow in 2020 and a reduction in
debt-to-EBITDA leverage below 7.0x within two years without
significant pro forma adjustments. The rating also reflect the
inherent risks associated with executing an acquisition of this
size on top of other recent sizable acquisitions.
Culligan's credit profile is supported by the company's strong
market position, increased segment diversification bolstered by the
proposed AquaVenture acquisition, the high level of recurring
revenue, and good geographic diversification. Both Culligan and
AquaVenture's Quench segment have strong market positions in the
residential and office drinking water markets, respectively, and
AquaVenture's Seven Seas Water segment adds further revenue and
geographic diversification. Around 60% of the combined company's
revenue is recurring in nature, which offers earnings visibility
and also supports the credit profile. The sponsor financial support
through partial equity funding of acquisitions helps to somewhat
mitigate the integration, leverage and cash flow risks of the
transactions, and the rating also reflects Moody's expectation that
this financial support will continue.
Culligan's liquidity is adequate, characterized by modest cash on
hand of around $50 million, weak free cash flow generation, a lack
of meaningful maturities in 2020, and access to an undrawn $115
million revolving credit facility, which provides some level of
financial flexibility as the company executes its growth through
acquisitions strategy over the next year. The weak free cash flow
and expiration of the revolver in December 2021 are potential
liquidity risks.
The stable outlook reflects that the reduction in leverage pro
forma for the transaction will help mitigate the potential
variation around projected operating results and credit metrics
because of the large number of EBITDA adjustments and likely
continued acquisition activity. Moody's also expects the company
will continue to execute its acquisition strategy prudently with
minimal disruption both operationally and to credit metrics with
continued support from its financial sponsors, and that the company
will generate positive free cash flow in fiscal 2020. Moody's
assumes that revenue will grow by mid-single digits organically,
barring any major missteps with the integration of the proposed
acquisition, resulting in EBITDA growth and improving credit
metrics over the next 12-18 months.
Ratings could be upgraded if the company sustainably achieves
strong organic revenue and EBITDA growth with a narrowing gap
between reported US GAAP and management-adjusted results
(particularly EBITDA). The company would also need to reduce and
sustain debt/EBITDA below 5.5x, generate meaningfully positive free
cash flow, adhere to financial strategies expected to support
credit metrics at those levels, and maintain good liquidity to be
upgraded.
Ratings could be downgraded if the company's operating performance
weakens, financial policies become more aggressive, or debt/EBITDA
is sustained above 7.0x. The ratings could also be downgraded if
the company fails to generate positive free cash flow on an annual
basis or liquidity deteriorates.
The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.
Headquartered in Rosemont, Illinois, AI Aqua Merger Sub, Inc.
through its subsidiaries operates as a global manufacturer and
distributor of water treatment products and services for household,
commercial and industrial applications. AI Aqua Merger Sub, Inc. is
a wholly-owned subsidiary of Al Aqua Sárl (Parent and Guarantor).
The company is private and does not disclose its financial
information. AI Aqua Merger Sub, Inc., pro forma for the proposed
acquisition of AquaVenture and recently closed acquisitions
generated revenue of roughly $1.4 billion in the twelve-month
period ended September 30, 2019.
EVOLVE BUILDING: First Creditors' Meeting Set for Jan. 7
--------------------------------------------------------
A first meeting of the creditors in the proceedings of Evolve
Building Group Projects Pty Ltd will be held on Jan. 7, 2020, at
3:00 p.m. at the offices of Mackay Goodwin, Level 2, at 10 Bridge
Street, in Sydney, NSW.
Domenico Alessandro Calabretta and Thyge Trafford-Jones of Mackay
Goodwin were appointed as administrators of Evolve Building on Dec.
23, 2019.
M & A POLIMENI: First Creditors' Meeting Set for Jan. 7
-------------------------------------------------------
A first meeting of the creditors in the proceedings of M & A
Polimeni Plumbing Pty Ltd in its own right and ATF M & A Polimeni
Family Trust will be held on Jan. 7, 2020, at 3:00 p.m. at the
offices of BRI Ferrier, Level 10, at 45 William Street, in
Melbourne, Victoria.
David Coyne and James Koutsoukos of BRI Ferrier were appointed as
administrators of M & A Polimeni on Dec. 24, 2019.
PACIFIC BAUXITE: First Creditors' Meeting Set for Jan. 7
--------------------------------------------------------
A first meeting of the creditors in the proceedings of Pacific
Bauxite Limited will be held on Jan. 7, 2020, at 10:00 a.m. at the
offices of Quest East Perth, at 176 Adelaide Terrace, in East
Perth, WA.
Cameron Shaw and Richard Albarran of Hall Chadwick were appointed
as administrators of Pacific Bauxite on Dec. 23, 2019.
RESTORED CLASSICS: First Creditors' Meeting Set for Jan. 7
----------------------------------------------------------
A first meeting of the creditors in the proceedings of Restored
Classics Pty Ltd will be held on Jan. 7, 2020, at 10:00 a.m. at the
offices of Jirsch Sutherland, Level 9, at 120 Edward Street, in
Brisbane, Queensland.
Christopher John Baskerville of Jirsch Sutherland was appointed as
administrator of Restored Classics on Dec. 24, 2019.
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C H I N A
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HENGFENG BANK: Former Chairman Set for Life in Jail
---------------------------------------------------
The Financial Times reports that the former head of a regional bank
rescued by Chinese authorities this year is set to spend the rest
of his life behind bars after a court convicted him of corruption
and other crimes on Dec. 26.
The FT relates that Jiang Xiyun, former chairman of Hengfeng Bank,
was sentenced to death with a two-year reprieve - a punishment
usually commuted to life in prison after the reprieve - by a court
in eastern Shandong province, where the troubled financial
institution is based.
Jiang, who had been accused of embezzling about $110 million, was
also convicted of illegal destruction of financial documents, the
FT says citing the Yantai Intermediate People's Court.
Hengfeng was the largest of three regional banks rescued by Beijing
authorities this year, with more than CNY1.4 trillion (USD200
billion) in assets, the FT notes.
The FT says first to fall, Baoshang Bank in Inner Mongolia, was
controlled by Xiao Jianhua, a billionaire who was abducted from
Hong Kong three years ago by Chinese authorities and smuggled back
to the mainland. Officials are yet to comment officially on the
charges Mr. Xiao will face.
Baoshang's rescue, funded by the central bank, spooked the
country's financial markets because creditors above a certain size
will not get all of their money back, according to the FT.
The FT says the Chinese government forced larger state-controlled
financial institutions to come to the rescue of Bank of Jinzhou in
Liaoning province and Hengfeng.
China's largest lender, Industrial and Commercial Bank of China,
and two state-owned asset management companies, Cinda and Great
Wall, took large stakes in Bank of Jinzhou, the FT says.
The FT notes that Hengfeng's rescue was led by Central Huijin
Investment, a unit under China Investment Corp, Beijing's sovereign
wealth fund. Earlier this month, Hengfeng announced it would raise
CNY100 billion (USD14.3 billion) in new capital, about 60 per cent
of it from Central Huijin, the FT recalls.
Singapore's United Overseas Bank, which previously had a 13 per
cent stake in Hengfeng according to Reuters, took less than 2 per
cent of the new placement, diluting its shareholding, the report
relays.
According to the FT, Yi Gang, China's central bank governor, warned
in September that shareholders in institutions such as Hengfeng,
which undertook huge expansions at the beginning of the decade,
"must be responsible for the actions of their banks . . .
and need to have the ability to identify risks".
Despite such warnings and the seemingly harsh sentence for Jiang,
Chen Long, partner at Beijing-based research firm Plenum, said
death sentences with two-year reprieves were typical in corruption
cases involving similar amounts of money, the FT relates. "It is
unusual to see death penalties [carried out] these days," he added
The FT adds that the rescues of Hengfeng, Baoshang and Jinzhou
banks have raised concerns about the potential frailty of China's
banking system, especially as Beijing continues to crack down on
what it views as risky financing channels previously tapped by
regional banks and private sector companies.
[*] CHINA: Corporate Defaults in 2019 Up to Record High $18.6BB
---------------------------------------------------------------
The Financial Times reports that corporate defaults in China surged
to a record high in 2019, raising new questions over how
policymakers in Beijing will manage mounting financial distress
among large private and state-owned companies.
Onshore corporate defaults hit CNY130 billion (US$18.6 billion) in
the final weeks of the year, breaking the record of CNY122 billion
last year, the FT discloses citing to data compiled by Bloomberg,
as economic growth fell to a three-decade low.
According to the FT, private companies that expanded rapidly in
recent years, accruing large piles of debt, have been at the heart
of the explosion in corporate distress. Some of the country's
leaders in sectors such as chemicals and textiles have faced
financial pressures in recent weeks, the FT says.
Defaults on US dollar-denominated bonds, which until recently were
closely guarded with implicit state guarantees, have hit $2.9
billion this year, according to data from S&P Global Ratings, the
FT discloses.
"The recent pick-up in defaults adds to broader evidence that
corporate balance sheets remain under strain," the FT quotes Julian
Evans-Pritchard, senior China economist at Capital Economics, as
saying in a recent note to investors.
Private sector defaults have been concentrated in industries
heavily reliant on shadow bank funding - an area of the Chinese
financial system where access to credit has tightened significantly
over the past two years - and are now suffering from oversupply,
the FT says.
Yuhuang Chemical, which expanded rapidly over the past five years
and opened a large methanol plant in the US in 2017, is among a
growing list of large, private groups that have reneged on domestic
bond payments this year, according to the FT.
Shandong Ruyi, the owner of UK clothing maker Aquascutum and Savile
Row tailor Gieves & Hawkes, narrowly averted a default on a $345
million US-dollar bond due on December 19. But the group is still
struggling to manage a vast pile of debt that doubled in size
between 2015 and 2018, the report notes.
"Reduced funding access for weaker shadow banks could result in
increased credit events and defaults, particularly against the
backdrop of a slower environment, which can be particularly acute
for private-sector enterprises," Rowena Chang, an associate
director at Fitch, said in a report this month, the FT relays.
According to the FT, state-owned companies and groups controlled by
local governments around China have also faced unprecedented
financial pressures this year.
The FT relates that commodities trader Tewoo Group, which is backed
by the city government of Tianjin, forced creditors to take deep
discounts on a $300 million dollar-denominated bond earlier this
month, delivering a shock to investors who had thought such a
high-profile state group would receive full support from Beijing.
Experts are now debating how much support state-backed companies
will receive from the government in the new year following a
warning from a central bank adviser over a chain reaction in missed
payments, the report states.
"The 2020 wish lists for China's local government officials are
likely to include new bailouts of local debt," Logan Wright and
Allen Feng of independent researcher Rhodium Group wrote in a
report this month, the FT relays. "But the debt levels are just too
large at this point."
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I N D I A
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AIRCEL CELLULAR: CARE Keeps D on INR17,479cr Debt in NonCooperating
-------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Aircel
Cellular Limited continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 17,479 CARE D; Issuer not cooperating;
Facilities* Based on best available
information
* Part of Group facilities (interchangeable between Aircel Limited,
Aircel Cellular Limited,
Dishnet Wireless Limited and Aircel Smart Money Limited)
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated August 16, 2018, placed the
ratings of Aircel Cellular Limited under the 'Issuer Not
Cooperating' category as the company had failed to provide the
requisite information required for monitoring of the ratings as
agreed to in its rating agreement. Aircel Cellular Limited
continues to be non-cooperative despite repeated requests for
submission of information through phone calls and a letter/email
dated November 28, 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 on bank facilities of Aircel
Cellular Limited are 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
Contact details of the bankers are changed and CARE don't have the
updated contact details of the bankers. However, there are ongoing
delays as per publicly available information.
AL, together with two of its wholly owned subsidiaries ACL and DWL,
provides 2G wireless telecom services in all the 22 circles of
India and 3G services in 13 circles. ASML, another wholly owned
subsidiary of AL, provides mobile banking services. MCB, through
Global Communication Service Holdings Limited and Deccan Digital
Networks Private Limited, effectively holds approximately 73.99%
equity interest in AL. Further, Aircel had filled before the
National Company Law Tribunal, Mumbai Bench ("NCLT") in terms of
Section 10 of the Insolvency and Bankruptcy Code, 2016.
AIRCEL LIMITED: CARE Keeps D on INR17,479cr Debt in Not Cooperating
-------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Aircel
Limited continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 17,479 CARE D; Issuer not cooperating;
Facilities* Based on best available
information
* Part of Group facilities (interchangeable between Aircel Limited,
Aircel Cellular Limited,
Dishnet Wireless Limited and Aircel Smart Money Limited)
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated August 16, 2018, placed the
ratings of Aircel Limited under the 'Issuer Not Cooperating'
category as the company had failed to provide the requisite
information required for monitoring of the ratings as agreed to in
its rating agreement. Aircel Limited continues to be
non-cooperative despite repeated requests for submission of
information through phone calls and a letter/email dated November
28, 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 on bank facilities of Aircel Cellular
Limited are 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
Contact details of the bankers are changed and CARE don't have the
updated contact details of the bankers. However, there are ongoing
delays as per publicly available information.
AL, together with two of its wholly owned subsidiaries ACL and DWL,
provides 2G wireless telecom services in all the 22 circles of
India and 3G services in 13 circles. ASML, another wholly owned
subsidiary of AL, provides mobile banking services. MCB, through
Global Communication Service Holdings Limited and Deccan Digital
Networks Private Limited, effectively holds approximately 73.99%
equity interest in AL. Further, Aircel had filled before the
National Company Law Tribunal, Mumbai Bench ("NCLT") in terms of
Section 10 of the Insolvency and Bankruptcy Code, 2016.
AIRCEL SMART: CARE Keeps D on INR17,479cr Debt in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Aircel
Smart Money Limited continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 17,479 CARE D; Issuer not cooperating;
Facilities* Based on best available
information
* Part of Group facilities (interchangeable between Aircel Limited,
Aircel Cellular Limited,
Dishnet Wireless Limited and Aircel Smart Money Limited)
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated August 16, 2018, placed the
ratings of Aircel Smart Money Limited under the 'Issuer Not
Cooperating' category as the company had failed to provide the
requisite information required for monitoring of the ratings as
agreed to in its rating agreement. Aircel Smart Money Limited
continues to be non-cooperative despite repeated requests for
submission of information through phone calls and a letter/email
dated November 28, 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 on bank facilities of Aircel
Smart Money Limited are 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
Contact details of the bankers are changed and CARE don't have the
updated contact details of the bankers. However, there are ongoing
delays as per publicly available information.
AL, together with two of its wholly owned subsidiaries ACL and DWL,
provides 2G wireless telecom services in all the 22 circles of
India and 3G services in 13 circles. ASML, another wholly owned
subsidiary of AL, provides mobile banking services. MCB, through
Global Communication Service Holdings Limited and Deccan Digital
Networks Private Limited, effectively holds approximately 73.99%
equity interest in AL. Further, Aircel had filled before the
National Company Law Tribunal, Mumbai Bench ("NCLT") in terms of
Section 10 of the Insolvency and Bankruptcy Code, 2016.
AJIT CONSTRUCTION: CARE Lowers Rating on INR3.5cr Loan to 'D'
-------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of Ajit
Construction Company (ACC), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 3.50 CARE D; Issuer not cooperating;
Facilities revised from CARE B; Stable;
ISSUER NOT COOPERATING on the
Basis of best available
information
Short-term Bank 2.40 CARE D; Issuer not cooperating;
Facilities revised from CARE A4; ISSUER
NOT COOPERATING on the basis of
best available information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated February 12, 2019, placed
the rating of ACC under the 'issuer non-cooperating' category as
ACC had failed to provide information for monitoring of the rating
and had not paid the surveillance fees for the rating exercise as
agreed to in its Rating Agreement. ACC continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, 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(s).
The ratings have been revised on account of delay in debt servicing
owing to stressed liquidity position.
Detailed description of the key rating drivers
Key Rating Weakness
* Ongoing delay in debt servicing. There are on-going delays in
debt servicing owing to stressed liquidity position.
Ajit Construction Company, a proprietorship firm established in the
year 1984 by Mr. Ajit Singh Bagga. The entity is engaged into
construction of road work. The entity takes tender based contracts
for its projects where it majorly caters to Madhya Pradesh Rural
Road Development Authority (MPRRDA) and PMGSY (Pradhan Mantri Gram
Sadak Yojana) scheme. The firm procures raw materials like Cement
material, ready mix concrete, steel and plumbing material, etc.
from local suppliers across Madhya Pradesh.
ALPINE WINERIES: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Alpine Wineries Private Limited
33/1 Sapthagiriarcade II Floor
8th Cross Wilson Garden
H. Siddaiah Road
Bangalore
Insolvency Commencement Date: December 17, 2019
Court: National Company Law Tribunal, Bangalore Bench
Estimated date of closure of
insolvency resolution process: June 13, 2020
(180 days from commencement)
Insolvency professional: Ravindranath Narayana Rao
Interim Resolution
Professional: Ravindranath Narayana Rao
#522/C, 1st D, Cross Road
15th Main, 3 Stage
4 Block, WCR
Basaveshwaranagar
Bangalore 560079
E-mail: ravishendige@gmail.com
cirpawpl@gmail.com
Last date for
submission of claims: January 2, 2020
ALVI TECH: CARE Lowers Rating on INR5.50cr LT Loan to 'D'
---------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of Alvi
Tech Services Private Limited (ATS), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 5.50 CARE D; Issuer not cooperating;
Facilities revised from CARE B; Stable
Based on best available
Information
Short-term Bank 3.00 CARE D; Issuer not cooperating;
Facilities revised from CARE A4 Based on
best available information
Proposed Long/ 6.50 CARE D; Issuer not cooperating;
Short-term Bank revised from CARE B; Stable/
Facilities CARE A4 Based on best available
information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from ATS to monitor the rating(s)
vide e-mail communications/letters dated December 13, 2019,
November 13, 2019, October 14, 2019 and numerous phone calls.
However, despite CARE's repeated requests, the company has not
provided the requisite information for monitoring the ratings. In
line with the extant SEBI guidelines, CARE has reviewed the rating
on the basis of the publicly available information which however,
in CARE's opinion is not sufficient to arrive at a fair rating. The
rating on Alvi Tech Services Private Limited (ATS) 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 ratings.
The revision in rating assigned to the bank facilities of Alvi Tech
Services Private Limited (ATS) takes into consideration the delay
in debt servicing.
ATS's ability to establish clear track of servicing of its debt
obligations with generation of sufficient cash accruals is the key
rating sensitivity.
Key updates
* Delay in debt servicing. As per the interaction with the banker,
the account has been classified as NPA.
Alvi Tech Services Private Limited (ATS) was incorporated as a
private limited company in the year 2006 by Mr. Krishnanand Trivedi
and Mr. Alok Trivedi who are having more than two decades of
experience in EPC contracts. ATS has taken over proprietorship
company namely Alvi Tech Services in 2006. Company is engaged in
erection, commissioning and procurement (EPC) work in the field of
electrical instrumentation for offshore projects for Oil & Gas
companies through tender bidding process. ATS's registered office
is located at Kalyan while workshop is situated at Dombivali.
BAMBINO PASTA: Ind-Ra Affirms & Withdraws 'BB+' LT Issuer Rating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed and withdrawn
Bambino Pasta Food Industries Private Limited's (BPFIPL) Long-Term
Issuer Rating of 'IND BB+'. The Outlook was Stable.
The instrument-wise rating actions are:
-- The 'IND BB+'/Stable rating on the INR500 mil. Term loan* due
on March 2024 affirmed and withdrawn;
-- The 'IND BB+'/Stable/'IND A4+' rating on the INR200 mil. Fund-
based working capital limit^ affirmed and withdrawn;
-- The 'IND A4+' rating on the INR30 mil. Non-fund-based working
capital limit^^ affirmed and withdrawn; and
-- The Provisional 'IND BB+/stable/Provisional IND A4+' rating on
the INR30 mil. Proposed fund-based working capital limit#
affirmed and Withdrawn.
* Affirmed at 'IND BB+'/Stable before being withdrawn
^ Affirmed at 'IND BB+'/Stable/'IND A4+' before being withdrawn
^^Affirmed at 'IND A4+' before being withdrawn
#Affirmed at Provisional IND BB+/stable/Provisional IND A4+
KEY RATING DRIVERS
The affirmation reflects the marginal decline of 3.4% YoY in
BPFIPL's revenue to INR2,358 million in FY19 followed by continuous
year-on-year fall in its EBITDA margins to 6.6% (FY18: 7.5%; FY17:
9.8%) due to an increase in key operating expenses.
Furthermore, the company achieved revenue of INR1,323.20 million
and EBITDA margins of 6.88% in 1HFY20 on the back of an increase in
sales realization to INR58.45 per kg from INR55 per kg in FY19.
Based on the half-year results shared by the company with Ind-Ra,
the agency expects BPFIPL's margins to improve as a result of a
rise in the sale of vermicelli and pasta & premium pasta products
and annualized revenue growth of 12% in FY20.
BPFIPL's net leverage (adjusted net debt/operating EBITDAR)
deteriorated to 4.64x in FYE19 (FY18: 3.92x) and gross interest
coverage (operating EBITDA/gross interest expense) to 1.8x (2.1x)
owing to the high utilization of working capital limits. The weak
credit metrics also resulted from the company availing new working
capital term loans to the tune of INR500 million and increasing its
unsecured loans during FY19. However, Ind-Ra expects an improvement
in the debt metrics in the near term on the back of accretion of
reserves & surplus and the repayment of term loans resulting in a
decrease in interest cost.
Liquidity Indicator - Stretched: The company's average use of its
fund-based facilities was 97% over the 12 months ended in October
2019. Cash flow from operations turned positive to INR8.27 million
during FY19 (FY18: negative INR18.04 million) due to a decrease in
the working capital. Liquid cash and cash equivalents fell to
INR2.75 million during FY19 (FY18: INR11.88 million). The working
capital cycle stretched to 114 days in FY19 (FY18: 100 days), due
to a long inventory holding period of 76 days to meet the company's
orders.
The ratings, however, continue to be supported by the company's
three-decade-long established brand Bambino. BPFIPL's products have
strong brand value and well-established products across West, South
and Central part of India.
The ratings are also supported by the company's continuous
initiatives to roll out new products such as Bambino chakki atta in
FY21-FY22. The company's decision to withdraw the low-margin local
brand Anchal being sold in the unorganized sector in the Telangana
market in FY20 also supports its revenue growth prospects.
RATING SENSITIVITIES
Positive: Substantial growth in the revenue and/or an improvement
in the profitability margin, leading to a sustained improvement in
the credit metrics, will lead to positive rating action.
Negative: A decline in the revenue and/or profitability margin,
leading to sustained deterioration in the credit metrics, will lead
to negative rating action.
COMPANY PROFILE
Established in 2000, BPFIPL manufactures and sells pasta & premium
pasta products, macaroni, wheat products, vermicelli and roasted
vermicelli (value-added product) under the Bambino brand. The
company has a manufacturing plant in Bibinagar near Hyderabad,
Telangana.
BBN FOODS HI-TECH: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: BBN Foods Hi-Tech Processing Private Limited
Plot No. 11 Industrial Area
Bilaspur Himachal
Pradesh 177005
Insolvency Commencement Date: December 17, 2019
Court: National Company Law Tribunal, Chandigarh Bench
Estimated date of closure of
insolvency resolution process: June 14, 2020
Insolvency professional: Gurdev Bassi
Interim Resolution
Professional: Gurdev Bassi
1629 Progressive Housing Society
Sec-50-B, Chandigarh
Chandigarh 160047
E-mail: ipgurdevbassi@gmail.com
- and -
#303, 3rd floor, Plot no. D-190
Phase 8b, Sector 74
Industrial Area
SAS Nagar Mohali
Punjab 160071
E-mail: ipbbnfood@gmail.com
Mobile: 9357052828
Last date for
submission of claims: December 31, 2019
BRIPANIL INDUSTRIES: Insolvency Resolution Process Case Summary
---------------------------------------------------------------
Debtor: Bripanil Industries Limited
Registered office:
22, Biplabi Rash Behari Bose Road
4th Floor, Room No. 41
Kolkata 700001
Principal office:
No. 58-59 Khata No. 629-549 Magadi Road
Sankadakatte, Bangalore 560091
- and -
Sr. No. 2, Srigandada Kavalu
Magadi Main Road, Sunkadakatte
Bangalore 560091
Insolvency Commencement Date: December 18, 2019
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: June 15, 2020
(180 days from commencement)
Insolvency professional: Abhijeet Jain
Interim Resolution
Professional: Abhijeet Jain
Diamond Chamber
4, Chowringhee Lane
Block-1, 4th Floor
Suite # 4M, Kolkata
West Bengal 700016
E-mail: ajasso@rediffmail.com
cirp.bripranil@gmail.com
Last date for
submission of claims: January 1, 2020
CROSS LINK: Insolvency Resolution Process Case Summary
------------------------------------------------------
Debtor: Cross Link Shipping Private Limited
Registered office:
35 A, Sidharth Chambers-II
Kalu Sarai, Hauz Khas
New Delhi 110016
Insolvency Commencement Date: December 16, 2019
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: June 13, 2020
(180 days from commencement)
Insolvency professional: Mr. Rajesh Jangra
Interim Resolution
Professional: Mr. Rajesh Jangra
The Chambers of Jangra & Associates
ED-15 C, Pitampura
Delhi 110034
E-mail: jangraadvocate@gmail.com
crosslink.cirp@gmail.com
Last date for
submission of claims: December 30, 2019
DABRA AGRO: CARE Lowers Rating on INR24cr LT Loan to 'D'
--------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Dabra Agro Private Limited (DAPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 24.00 CARE D; Issuer not cooperating;
Facilities revised from CARE B; Stable;
ISSUER NOT COOPERATING
on the basis of best available
information
Detailed Rationale, Key Rating Drivers
CARE had, vide its press release dated March 18, 2019, placed the
rating of DAPL under the 'issuer non-cooperating' category as DAPL
had failed to provide information for monitoring of the rating and
had not paid the surveillance fees for the rating exercise as
agreed to in its Rating Agreement. DAPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, 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(s).
The ratings have been revised on account of delay in debt servicing
owing to stressed liquidity position.
Detailed description of the key rating drivers
Key Rating Weakness
* Ongoing delay in debt servicing. There are on-going delays in
debt servicing owing to stressed liquidity position.
Dabra (Madhya Pradesh) based Dabra Agro Private Limited (DAPL) was
incorporated as a private limited company in 1996. DAPL is mainly
engaged in the processing of rice and is also engaged in the
trading of paddy. The processing plant of the company has an
installed capacity of 8 Metric Tonnes per Hour (MTPD) for
processing of rice as on March 31, 2017. The company purchases
paddy from traders as well as farmers and sells rice (basmati,
parmal, Shela etc.) to Gujarat, etc. The company sells rice under
the brand name of 'Dinner King'.
DHARAMRAJ CONTRACTS: Ind-Ra Migrates 'D' Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Dharamraj
Contracts India Private Limited's (DCIPL) Long-Term Issuer Rating
to 'IND D' from 'IND BB' and has simultaneously migrated the
ratings to the non-cooperating category. The Outlook on the earlier
rating was Stable. The issuer did not participate in the rating
exercise despite continuous requests and follow-ups by the agency.
Thus, the rating is based on the best available information.
Therefore, investors and other users are advised to take
appropriate caution while using the rating. The rating will now
appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR210 mil. Fund-based-limits (long-term & short-term)
downgraded & migrated to non-cooperating category with IND D
(ISSUER NOT COOPERATING) rating;
-- INR700 mil. Non-fund-based limits (short-term) downgraded &
migrated to non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating; and
-- INR390 mil. Proposed non-fund based limits (short-term)
downgraded & migrated to non-cooperating category with
Provisional IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
KEY RATING DRIVERS
The downgrade reflects delays in the repayment of temporary
overdraft along with interest due thereon by DCIPL for more than 30
days for the three months ended November 2019, due to delays in
payments from its debtors.
RATING SENSITIVITIES
Positive: Timely debt servicing for at least three consecutive
months could result in a positive rating action.
COMPANY PROFILE
Established in 2010, DCIPL undertakes design, engineering,
construction maintenance and repair of civil infrastructure
projects such as roads, highways and building works, for central
and state government road construction departments.
DISHNET WIRELESS: CARE Maintains 'D' Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Dishnet
Wireless Limited continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 17,479 CARE D; Issuer not cooperating;
Facilities* Based on best available
information
* Part of Group facilities (interchangeable between Aircel Limited,
Aircel Cellular Limited,
Dishnet Wireless Limited and Aircel Smart Money Limited)
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated August 16, 2018, placed the
ratings of Dishnet Wireless Limited under the 'Issuer Not
Cooperating' category as the company had failed to provide the
requisite information required for monitoring of the ratings as
agreed to in its rating agreement. Dishnet Wireless Limited
continues to be non-cooperative despite repeated requests for
submission of information through phone calls and a letter/email
dated November 28, 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 on bank facilities of Dishnet
Wireless Limited are 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
Contact details of the bankers are changed and CARE don't have the
updated contact details of the bankers. However, there are ongoing
delays as per publicly available information.
AL, together with two of its wholly owned subsidiaries ACL and DWL,
provides 2G wireless telecom services in all the 22 circles of
India and 3G services in 13 circles. ASML, another wholly owned
subsidiary of AL, provides mobile banking services. MCB, through
Global Communication Service Holdings Limited and Deccan Digital
Networks Private Limited, effectively holds approximately 73.99%
equity interest in AL. Further, Aircel had filled before the
National Company Law Tribunal, Mumbai Bench ("NCLT") in terms of
Section 10 of the Insolvency and Bankruptcy Code, 2016.
DUCKBILL DRUGS: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Duckbill Drugs Private Limited
D/660, Lake Gardens
Kolkata WB 700045
IN
Insolvency Commencement Date: December 17, 2019
Court: National Company Law Tribunal, Ahmedabad Bench
Estimated date of closure of
insolvency resolution process: June 14, 2020
(180 days from commencement)
Insolvency professional: Mr. Bhupendra Singh Narayan Singh Rajput
Interim Resolution
Professional: Mr. Bhupendra Singh Narayan Singh Rajput
A-309, ATMA House
Opp. Old RBI
Ashram Road
Ahmedabad 380009
E-mail: cabsrajput309@gmail.com
Last date for
submission of claims: January 3, 2020
DUNCANS INDUSTRIES: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: Duncans Industries Limited
Duncan House
31, Netaji Subhas Road
2nd Floor
Kolkata 700001
W.B.
Insolvency Commencement Date: December 18, 2019
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: June 15, 2020
(180 days from commencement)
Insolvency professional: Surendra Kumar Agarwal
Interim Resolution
Professional: Surendra Kumar Agarwal
Bhawani Enclave, 3D
99C Girish Ghosh Road
Liluah, Howrah 711204
E-mail: surendraca@gmail.com
- and -
C/o Jain Chandra & Associates
18, Rabindra Sarani
Poddar Court, Gate No. 1
8th Floor, Room No. 816
Kolkata 700001
E-mail: cirp.duncans@gmail.com
Classes of creditors: Fixed Deposit Holder
Insolvency
Professionals
Representative of
Creditors in a class: Mr. Kamal Prakash Singh
Central Plaza
41 B.B. Ganguly Street
5th Floor, Suite No. 5E
Kolkata 700012, WB
E-mail: kamalprakashco@gmail.com
Mr. Chhedi Rajbhar
C. Rajbhar & Co.
40 Strand Road
Model House
2nd Floor, Room No. 49
Kolkata 700001, WB
E-mail: crajbharco.ca@gmail.com
Mr. Abhijeet Jain
Diamond Chamber
4, Chowringhee Lane
Block I, 4th Floor, Suite-4M
Kolkata 700016
E-mail: ajasso@rediffmail.com
Last date for
submission of claims: January 1, 2020
DURGASHREE CASHEWS: CARE Lowers Rating on INR6cr LT Loan to D
-------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Durgashree Cashews (DC), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 6.00 CARE D; Issuer not cooperating;
Facilities Revised from CARE B+; Stable on
the basis of best available
information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from DC to monitor the rating
vide e-mail communications/letters dated November 12, 2019,
November 13, 2019, November 14, 2019, November 15, 2019 and
November 19, 2019 and numerous phone calls. However, despite CARE's
repeated requests, the firm has not provided the requisite
information for monitoring the rating. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of best
available information which however, in CARE's opinion is not
sufficient to arrive at 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
The revision in the rating assigned to the bank facilities of DC
takes into account the delays in servicing the interest on working
capital facility. The client has undergone restructuring and
availed WCTL.
Key Rating Weaknesses
* Delays in debt servicing obligations. The client has undergone
restructuring of debt facilities in October, 2019 and availed WCTL.
There are on-going delays in
servicing of interest.
* Small scale of operations with low networth. The firm has a
track record of nine years, however, the total operating income
(TOI) of the firm remained low at INR8.95 crore in FY17 with a low
net worth base of INR1.49 crore as on March 31, 2017 as compared to
other peers in the industry.
* Declining PBILDT margins. The PBILDT margins of the firm are
seen declining during the review period. The PBILDT margin of the
firm has decreased from 11.05% in FY15 to 8.41% in FY17, as
although sales realizations increased, the firm could not pass on
the increase in raw material cost to its customers. The firm
follows the strategy of purchasing high quantities of stocks of raw
cashew when the price is relatively low which could cause
fluctuations in the profitability margins in the future.
Furthermore, PAT margin of the firm stood in the range of
1.57%-2.06% due to y-o-y increase in interest and financial
expenses.
* Leveraged capital structure and weak debt coverage indicators.
The capital structure of the firm stood leveraged as on March 31,
2017. The debt equity ratio has improved from 1.06x as on March 31,
2015 to 0.38x as on March 31, 2017 due to repayment of term loans
and vehicle loans. However, the overall gearing ratio of the firm
deteriorated from 1.67x as on March 31, 2015 to 3.12x as on March
31, 2017 due to high utilization of working capital limits.
* The debt coverage indicators of the firm stood weak during the
review period. The total debt/GCA though deteriorated from 7.03x in
FY15 to 15.36x in FY17 due to increase in debt levels at the back
of high utilization of working capital limits. The PBILDT interest
coverage ratio improved marginally from 2.09x in FY15 to 2.30x in
FY17 due to increase in PBILDT levels. However, it deteriorated to
2.04x in FY17 due to increase in interest cost at the back of high
utilization of working capital limits.
* Working Capital intensive as well as labour intensive nature of
operations. The operating cycle of the firm stood between 60-161
days due to high average inventory period during review period. The
firm imports 3-4 times in a year from the foreign countries in the
months of April or May and December or January. The average
inventory period stood high during the review period as the firm
purchases high quantities of stocks of raw cashew when the price is
relatively low and also seasonal availability of raw cashews. The
firm also purchases raw cashews locally from farmers. The firm
receives the payment from its customers within 30 days from the
date of invoice. The firm makes payment to the foreign suppliers
within 7 days once the raw material reaches at the customs port.
Further, the firm makes purchases from the local farmers and
traders on cash basis. The average utilization of CC facility was
80% for the last 12 months ended August 31, 2018. The processing of
raw cashew into graded cashew involves both working capital and
labor requirements. The First three processes of roasting shelling
and drying involves machines and the next levels of peeling,
grading and packing involve labour. Hence, DC's operations are not
only working capital intensive but it is also labor intensive.
Exposure to foreign exchange fluctuation risk. As imports
constitute around 90% of the total purchases of the firm, the firm
is exposed to foreign exchange fluctuation risk. The imports
exports raw cashew nuts from Dubai, Singapore, Indonesia, African
countries like Benin, Togo, Ivory Coast, and Tanzania etc. The firm
enters into contract with the supplier for purchase of raw material
and the firm receives them at the customs port within 45 days from
the date of contract. The firm makes payment in foreign currency
(USD) within 7 days once the raw material reaches the port The firm
has no hedging policy there by exposing the payables to foreign
exchange fluctuation risk.
* Highly fragmented and competitive industry. The cashew
processing business is highly fragmented with presence of large
number of organized and unorganized players in India as well
abroad. There is a high competition within the industry due to low
entry barriers and low product differentiation, thus limiting the
pricing flexibility. Raw cashew being an agro-commodity, the
availability of the same depends upon the climatic conditions.
* Constitution of the entity as partnership firm. Constitution as
a partnership has the inherent risk of possibility of withdrawal of
the capital at the time of personal contingency which can adversely
affect its capital structure. Furthermore, partnership firms have
restricted access to external borrowings as credit worthiness of
the partners would be key factors affecting credit decision for the
lenders. The partners of the firm have withdrawn capital to the
tune of INR0.33 crore in FY17.
Key Rating Strengths
* Reasonable track record and experience of the promoters for more
than a decade in cashew industry. Durgashree Cashews (DC) was
established in 2009 as a partnership firm by Mr.B. Satish Shetty
and Mrs.Suhasini S Shetty. Mr.B. Satish Shetty has around 25 years
of experience in cashew processing business. Further, Mrs.Suhasini
S Shetty has experience of more than 10 years of experience in
cashew processing business. Due to long experience of the partners,
they were able to establish long term relationship with clientele.
The same is expected to help the partners in developing their
business in near future.
* Growth in total operating income. The total operating income of
the firm increased y-o-y at a CAGR of 28.27% i.e., from INR5.44
crore in FY15 to INR8.95 crore in FY17, at back of increase in
sales volume and sale price per tin coupled with repetitive orders
from existing customers. Furthermore the firm has achieved turnover
of INR9.95 crore in FY18 (Provisional).
* Stable outlook of cashew industry. India is the top consumer of
cashew kernels in the world by absorbing over 25 per cent of the
supply, "Cashew nut demand has shot up 53 per cent since 2010.
Global demand for the cashew kernel has surged 53% since 2010,
surpassing production in at least four of the past seven years. In
a steadily growing $30-billion global tree nut market, the cashew
nut segment will continue to lead, and it is expected to account
for 28.91 per cent of the market by 2021. Global cashew production
is estimated at 7.4 million tonne.
Durgashree Cashews (DC) was established in 2009 as a partnership
firm by Mr.B. Satish Shetty and Mrs.Suhasini S Shetty. The firm is
engaged in processing of raw cashew nut into cashew kernels, the
process involves steam roasting, shell cutting, peeling and
grading. The firm majorly procures raw material (raw cashew nuts)
through imports from Dubai, Singapore, Indonesia, African countries
like Benin, Togo, Ivory Coast, and Tanzania etc. The firm also
purchases raw cashews locally from farmers. Imports constitute 90%
of the total purchases. The firm sells the cashew kernels
throughout India through agents. Goa, Karnataka, Maharashtra,
Punjab and Rajasthan are the major states covered by the firm. The
firm also generates income from sale of by-products cashew shells,
cashew husk and rejections.
ECS BIZTECH: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: ECS Biztech Limited
ECS House, 11-12 Garden View
Opp Auda Garden
Pakwan Circle
Sindhu Bhavan Road
Off SG Highway
Bodakdev Ahmedabad
Gujarat 380059
Insolvency Commencement Date: December 16, 2019
Court: National Company Law Tribunal, Ahmedabad Bench
Estimated date of closure of
insolvency resolution process: June 12, 2020
(180 days from commencement)
Insolvency professional: Sunil Kumar Agarwal
Interim Resolution
Professional: Sunil Kumar Agarwal
Tower 6/603, Devnandan Heights
Near Podar School
New CG Road
Chandkheda, Ahmedabad
Gujarat 382424
E-mail: anil91111@hotmail.com
- and -
202, Sakar III
Near C U Shah College
Income Tax Circle
Ahmedabad 380014
E-mail: cirp.ecsbiztech@gmail.com
Last date for
submission of claims: January 4, 2020
GOOUKSHEER FARM: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Goouksheer Farm Fresh Private Limited
As per MCA data on 16.12.2019:
39, Sambhunath Pandit Street
Kolkata WB 700025
IN
As per NCLT Order Copy dated 13.12.2019:
63/3B Sarat Bose Road, 5th Floor
Kolkata 700025
West Bengal
Insolvency Commencement Date: December 13, 2019
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: June 9, 2020
Insolvency professional: Sanjeev Jhunjhunwala
Interim Resolution
Professional: Sanjeev Jhunjhunwala
Siddha Weston, 9 Weston Street
Suite no. 134, 1st Floor
Kolkata 700013
E-mail: sanjeevjhunjhunwala@gmail.com
cirp.goouks@gmail.com
Last date for
submission of claims: December 26, 2019
GROMET (INDIA): Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Gromet (India) Private Limited
House No. 12, First Floor
Adhichini, New Delhi
South Delhi 110017
India
Insolvency Commencement Date: December 13, 2019
Court: National Company Law Tribunal, Delhi Bench
Estimated date of closure of
insolvency resolution process: June 10, 2020
(180 days from commencement)
Insolvency professional: Pankaj Kumar Singhal
Interim Resolution
Professional: Pankaj Kumar Singhal
Not for communication:
A-233, Ground Floor, Bunkar Colony
Ashok Vihar, Phase-IV
Delhi 110052
E-mail: aprassociatesllp@gmail.com
For communication:
E-mail: cirp.grometindia@gmail.com
- and -
Insolvency and Bankruptcy Board of India
(IBBI)
7th Floor, Mayur Bhawan
Shankar Market, Connaught Circus
New Delhi 110001
Last date for
submission of claims: January 1, 2020
HIMSHILA FERRO: CARE Assigns 'D' Rating to INR6.53cr LT Loan
------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Himshila
Ferro Alloys Private Limited (HFAPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 6.53 CARE D Assigned
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of HFAPL is primarily
constrained by delay in debt servicing of the company.
Rating Sensitivities
Positive factors
* Track record of timely servicing of debt obligations for at
least 90 days.
* Sustained improvement in financial risk profile, especially
liquidity.
Detailed description of the key rating drivers
Delay in debt servicing
There was a delay in term loan instalment of the company owing to
inadequate accruals from operations. Furthermore, there were
instances of over-drawings in the cash credit account also but the
same got regularized within 5 to 7 days.
Liquidity Indicator
Liquidity: Poor
Poor liquidity marked by lower accruals when compared to repayment
obligations, fully utilized bank limits and low cash balance. This
could constrain the ability of the company to repay its debt
obligations on a timely basis. The cash and cash equivalent stood
at INR0.03 crore as on March 31, 2019.
Incorporated in July 2009, Himshila Ferro Alloys Private Limited
(HFAPL) was promoted by Mr. Chinmoy Mondal and Mrs. Soma Ghosh for
setting up an iron castings unit in Burdwan, West Bengal. The
company has started its commercial operations from June 2017 at its
plant located at Dewandighi, Burdwan, West Bengal with an installed
capacity of 200 metric tons per month (MTPM). The company has been
engaged in manufacturing of high duty grey iron castings and
ductile iron castings.
HYDERABAD RING: CARE Keeps D on INR185cr Debt in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Hyderabad
Ring Road Project Private Limited continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 185.11 CARE D; Issuer not cooperating;
Facilities- Based on best available
(Term Loan) information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from Hyderabad Ring Road Project
Private Limited to monitor the rating(s) vide email
communications/letters dated August 5, 2019, August 20, 2019,
August 28, 2019, September 24, 2019, November 11, 2019, November
18, 2019, November 25, December 9, 2019 and numerous phone calls.
However, despite CARE's repeated requests, the company has not
provided the requisite information for monitoring the ratings. In
line with the extant SEBI guidelines, CARE has reviewed the rating
on the basis of the best available information which however, in
CARE's opinion is not sufficient to arrive at a fair rating. The
rating on Hyderabad Ring Road Project Private Limited's bank
facilities will now be denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers
The rating assigned to the bank facilities of Hyderabad Ring Road
Project Private Limited (HRRP) continues to factor in delays in
debt servicing by the company.
At the time of last rating on September 26, 2018, the following
were the rating weaknesses and strengths:
Key Rating Weaknesses
Delay in Debt servicing obligations: The liquidity position of the
company continues to remain weak due to delay in receiving
annuities from Hyderabad Growth Corridor Limited, leading to
ongoing delays in debt servicing.
Hyderabad Ring Road Projects Private Limited (HRRP) is a special
purpose vehicle (SPV) promoted by consortium of Era Infra
Engineering Limited and Induni CIE SA, for executing and operating
a 8-lane expressway (Narsingi to Kollur from km 0.00 to km 12.00
package) under Phase II of Outer Ring Road project of Hyderabad
Growth Corridor Limited (HGCL, in which 74% stake is held by
Hyderabad Metropolitan Development Authority (HMDA)) on Build
Operate Transfer (BOT Annuity) basis. The project, which was
secured following competitive bidding process in June 2007,
received provisional COD w.e.f. from March 30, 2012. The concession
period of the project is of 15 years from the appointed date, which
is December 12, 2007. HGCL/HMDA would pay HRRP 25 semi-annual
annuities of INR30.9 crore each over the entire concession period
from the COD.
IL&FS: Market Regulator Fined Two Credit Rating Agencies
--------------------------------------------------------
Reuters reports that India's market regulator on Dec. 26 fined two
leading credit rating agencies INR2.5 million (USD35,058.20) each
for their failure to carry out proper due diligence when assigning
credit ratings to an indebted shadow bank.
ICRA, the Indian arm of global ratings company Moody's Investors
Service, and CARE Ratings "failed to exercise proper skill, care
and due diligence" while assigning credit ratings for
non-convertible debentures of Infrastructure & Leasing Finance
Services (IL&FS), the Securities and Exchange Board of India (SEBI)
said in two separate orders late on Dec. 26, Reuters relates.
According to Reuters, India's credit rating agencies have come
under pressure from authorities and investors over their failure to
proactively flag financial problems at IL&FS, one of the country's
biggest Non-Banking Financial Companies (NBFCs) until a subsidiary
started defaulting on some of its debt last year.
In 2018, the Indian government took control of the IL&FS board, in
a move it said was necessary to protect the country's financial
system and markets from potential collapse, as shockwaves from a
series of IL&FS defaults triggered big declines in debt and equity
prices at other shadow lenders, Reuters says.
Reuters notes that funded substantially by short-term debt, NBFCs
such as IL&FS, also known as shadow banks, have played a major role
in lending growth in India in the last two years as Indian banks,
saddled with roughly $150 billion of bad debt, slowed lending.
Credit rating agencies for years assigned high ratings to IL&FS and
its group companies despite its deteriorating financial health,
according to a special audit conducted by Grant Thornton India,
Reuters relays.
CARE Ratings in July placed its chief executive on leave until
further notice, the report says.
ICRA in August fired its chief executive after sending him on leave
in July this year, Reuters relates.
According to Reuters, IL&FS in October said it aimed to resolve 50%
of its debt by March 2020 and had identified resolution plans for
all of its 302 entities.
IL&FS has a total debt of close to a trillion rupees, the report
notes.
About IL&FS
Infrastructure Leasing & Financial Services Limited (IL&FS) --
https://www.ilfsindia.com/ -- is an infrastructure development and
finance company based in India. It focuses on the development and
commercialization of infrastructure projects, and creation of value
added financial services. The company operates in Financial
Services, Infrastructure Services, and Others segments.
As reported in the Troubled Company Reporter-Asia Pacific on Oct.
3, 2018, the Indian Express said that the Indian government on Oct.
1, 2018, stepped in to take control of crisis-ridden IL&FS by
moving the National Company Law Tribunal (NCLT) to supersede and
reconstitute the board of the firm which has defaulted on a series
of its debt payments. This was said to be an attempt to restore the
confidence of financial markets in the credibility and solvency of
the infrastructure financing and development group.
INTEGRATED LIVESTOCK: Insolvency Resolution Process Case Summary
----------------------------------------------------------------
Debtor: Integrated Livestock Village Farm Pvt. Ltd.
B-3, Friends Colony (West)
Main Mathura Road
New Delhi 110065
Insolvency Commencement Date: December 18, 2019
Court: National Company Law Tribunal, New Delhi, Principal Bench
Estimated date of closure of
insolvency resolution process: June 15, 2020
(180 days from commencement)
Insolvency professional: Neeraj Bhatia
Interim Resolution
Professional: Neeraj Bhatia
P-27, First Floor
Malviya Nagar
New Delhi 110017
E-mail: nbtrace1@yahoo.com
ilvfplcirp@gmail.com
Last date for
submission of claims: January 3, 2020
JET AIRWAYS: Creditors to Seek Fresh Initial Bids
-------------------------------------------------
Business Standard reports that shares of Jet Airways (India) were
locked in 5 per cent upper circuit for the seventh straight day at
INR28.25 on the BSE on Dec. 26 as the creditors of the shuttered
airline decided to seek fresh initial bids for the airline. The
stock is trading at its highest level since September 30, 2019, the
report says.
The Committee of Creditors (CoC) would seek fresh Expression of
Interest (EoI), Business Standard relates citing a regulatory
filing on Dec. 23.
"The 6th CoC meeting of Jet Airways (India) was held on
December 17, 2019 and the CoC passed the resolution to issue fresh
invitation of Expression of Interest for the corporate debtor in
the e-voting concluded on December 22, 2019," the resolution
professional for the bankrupt company said in a regulatory filing
on Dec. 23, Business Standard relays.
Earlier this month, the National Company Law Tribunal (NCLT) had
directed the CoC to expedite their decision on seeking fresh EoIs
in view of new interest being shown for the grounded airline,
Business Standard recalls citing the Press Trust of India (PTI).
About Jet Airways
Based in Mumbai, India, Jet Airways (India) Limited was one of
India's top airlines founded by Naresh Goyal. It provided
passenger and cargo air transportation services as well aircraft
leasing services. It operated flights to 66 destinations in India
and international countries.
On June 20, 2019, the National Company Law Tribunal (NCLT), Mumbai
Bench, accepted an insolvency petition against Jet Airways filed by
its creditors as they attempt to recover some of their dues.
Ashish Chhawchharia of Grant Thornton India has been named as the
resolution professional in the case. Law firm Cyril Amarchand
Mangaldas will represent the interests of the lenders' consortium,
according to a Reuters report.
Jet Airways on April 17 halted all flight operations after its
lenders rejected its plea for emergency funds.
Creditors have filed claims worth INR30,907 crore, according to
Financial Express. The RP has so far admitted claims worth over
INR14,000 crore.
KALEESWARA GINNING: ICRA Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
ICRA said the ratings for the INR6.00-crore bank facilities of Sri
Kaleeswara Ginning Mills (SKGM) Continues to remain under 'Issuer
Not Cooperating' category'. The ratings are denoted as
"[ICRA]D/[ICRA]D ISSUER NOT COOPERATING."
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term–Fund 5.00 [ICRA]D; ISSUER NOT
Based Facilities/ COOPERATING; Rating
Cash Credit Continues to remain under
'Issuer Not Cooperating'
Category
Long term/Short 1.00 [ICRA]D/[ICRA]D; ISSUER NOT
Term–Unallocated COOPERATING; 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.
Sri Kaleeswara Ginning Mills is a proprietorship concern started in
the year 2002 by Mrs. Kokilavani. The concern operates a cotton
ginning, pressing unit in Coimbatore, Tamil Nadu. SKGM is engaged
in separating cotton fibre (lint) from cotton kappas. The cotton
are then packed in bales and sold to customers. The concern
procures BT variety of cotton and DCH variety of cotton from its
suppliers. SKGM operates in two shifts and has 10 employees on
permanent rolls and 20 employees on contractual basis. Mr.
Shanmugam, husband of the proprietor takes care of the overall
operations of the concern.
KG FOUNDATIONS: ICRA Lowers Rating on INR20cr LT Loan to B+
-----------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of KG
Foundations (P) Limited, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 20.00 [ICRA]B+(Stable) ISSUER NOT
Unallocated COOPERATING; Rating downgraded
from [ICRA]BB- (Stable) and
continues to remain under
'Issuer Not Cooperating'
Category
Rationale
The rating is downgraded because of lack of adequate information
regarding KG Foundations (P) Limited performance and hence the
uncertainty around its credit risk. ICRA assesses whether the
information available about the entity is commensurate with its
rating and reviews the same as per its "Policy in respect of
non-cooperation by the rated entity". The lenders, investors and
other market participants are thus 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.
As part of its process and in accordance with its rating agreement
with KG Foundations (P) Limited, ICRA has been trying to seek
information from the entity so as to monitor its performance, but
despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite information
and in line with SEBI's Circular No.
SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, ICRA's Rating
Committee has taken a rating view based on the best available
information.
KG Foundations (P) Limited, incorporated in 2005, is a real estate
developer based out of Chennai. The KG Group, promoted by Mr.
Kishore Kumar Gokaldas, has been involved in real estate
development since 1980 and has been one of the early entrants in
the Chennai real estate space.
KNK CONSTRUCTION: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: KNK Construction Private Limited
New No. 359, Old No. 95
7th Cross, Ashoka Pillar Road
Jayanagar 1st Block Bengaluru
Karnataka 560011
Insolvency Commencement Date: December 17, 2019
Court: National Company Law Tribunal, Bangalore Bench
Estimated date of closure of
insolvency resolution process: June 14, 2020
Insolvency professional: Konduru Prasanth Raju
Interim Resolution
Professional: Konduru Prasanth Raju
B-804, Shriram Suhaana Apartments
Harohalli, Nagenahalli Gate
Yelahanka, Bangalore
Karnataka 560064
E-mail: ipkpraju@gmail.com
- and -
New No 359, Old No. 95
7th Cross, Ashoka Pillar Road
Jaynagar 1st Block Bengaluru
Karnataka 560011
E-mail: knkclaims@gmail.com
Last date for
submission of claims: December 31, 2019
KRISHNA INDUSTRIAL: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: Krishna Industrial Corporation Limited
Ramakrishna Building
239, Mount Road
Chennai 600002
Tamil Nadu
Insolvency Commencement Date: December 16, 2019
Court: National Company Law Tribunal, Chennai Bench
Estimated date of closure of
insolvency resolution process: June 12, 2020
(180 days from commencement)
Insolvency professional: S. Rajendran
Interim Resolution
Professional: S. Rajendran
S. Rajendran & Associates
Company Secretaries
2nd Floor, Hari Krupa
No. 71/1, Mc Nicholas Road
Chetpet, Chennai 600031
Tel.: +914428361636
E-mail: cs.srajendran.associates@
gmail.com
claims.kicl@gmail.com
Last date for
submission of claims: December 30, 2019
KRP INFRASTRUCTURES: Insolvency Resolution Process Case Summary
---------------------------------------------------------------
Debtor: KRP Infrastructures & Builders Private Limited
Registered office:
MDH, 4/36, Sector H
Jankipuram, Lucknow
UP 226026
Mumbai office:
Office No. 4, Ashley Tower
Kanakia Road, Cinemax
Mira Road East
Thane 401107
Insolvency Commencement Date: December 17, 2019
Court: National Company Law Tribunal, Lucknow Bench
Estimated date of closure of
insolvency resolution process: June 14, 2020
Insolvency professional: Mr. Shravan Kumar Vishnoi
Interim Resolution
Professional: Mr. Shravan Kumar Vishnoi
BCC Tower, 1008, 10th Floor
Sultanpur-Lko Road, Arun Ganj
Near Saheed Path
Lucknow 226002
UP
E-mail: shravan.vishnoi@yahoo.com
Classes of creditors: May Be Allottess under a Real Estate
Projects
Insolvency
Professionals
Representative of
Creditors in a class: Anuj Kumar Tiwari
C-147 Raja Ji Puram Lucknow
Uttar Pradesh 226017
E-mail: anujtiwarics@gmail.com
Gyaneshwar Sahai
Second Floor, O S-2
The Next Door
Sector-76, Faridabad
Haryana 121004
E-mail: gyaneshwar.sahai@gmail.com
Anupam Tiwari
W-37, M.I.G.
Keshav Nagar, Juhi Gaushala
Kanpur, Uttar Pradesh
E-mail: tiwari.anupam23@gmail.com
Last date for
submission of claims: December 31, 2019
MA SARADA: ICRA Keeps D on INR4.01cr Loan in Not Cooperating
------------------------------------------------------------
ICRA said the rating for the INR5.56 crore bank facilities of Ma
Sarada Cold Storage 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 4.01 [ICRA]D ISSUER NOT COOPERATING;
Limit–Term Rating continues to remain
Loan under 'Issuer Not Cooperating'
category
Fund based 0.80 [ICRA]D ISSUER NOT COOPERATING;
Limit–Working Rating continues to remain
Capital under 'Issuer Not Cooperating'
category
Fund based 0.75 [ICRA]D ISSUER NOT COOPERATING;
Limit–Seasonal Rating continues to remain
Cash Credit 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 1987, Ma Sarada Cold Storage Private Limited is
engaged in providing cold storage facility to potato farmers and
traders on a rental basis. The facility of the company is located
in Bankura district of West Bengal having an annual storage
capacity of 21,052 metric tonnes.
NUCON PNEUMATICS: ICRA Keeps C on INR15cr Debt in Not Cooperating
-----------------------------------------------------------------
ICRA said the ratings for the INR26.00-crore bank facilities of
Nucon Pneumatics Private Limited (NPPL) continue to remain under
'Issuer Not Cooperating' category'. The ratings are denoted as
"[ICRA]C+/[ICRA]A4 ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based 15.26 [ICRA]C+; ISSUER NOT
facilities COOPERATING; Continues to
remain under the 'Issuer Not
Cooperating' category
Non-fund Based 5.97 [ICRA]A4; ISSUER NOT
COOPERATING; Continues to
remain under the 'Issuer Not
Cooperating' category
Unallocated 4.77 [ICRA]C+/[ICRA]A4; ISSUER NOT
limits COOPERATING; Continues to
remain under 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.
Nucon Pneumatics Private Limited was incorporated in the year 1972
under the name Nucon Industries Private Limited as a provider of
pneumatic solutions and compressed air treatment solutions.
Subsequently in the year 2010 the company diversified into
manufacturing of aerospace applications (missile guidance systems)
and later in the year 2012 both the divisions were demerged into
two different entities. The company is managed by Mr. Hemant Jalan
and his family. NPPL is currently engaged in providing pneumatic
solutions and the plant is located in Patancheru Hyderabad.
ORIENT GREEN: ICRA Reaffirms D Rating on INR8cr Term Loan
---------------------------------------------------------
ICRA has reaffirmed ratings on certain bank facilities of Orient
Green Power Company (Rajasthan) Private Limited (OGPRPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based-
Term Loan 8.00 [ICRA]D; Reaffirmed
Fund-based-
Working Capital
Facilities 8.00 [ICRA]D; Reaffirmed
Rationale
The reaffirmation of rating factors in the ongoing delays in debt
servicing by OGPRPL. While the plant load factor (PLF) of the 8 MW
biomass power plant operated by OGPRPL has improved to 79.9% in
FY2019 from 66.8% in FY2018 driven by improved availability of raw
materials, continued delay in debt repayments is due to the
company's weak cashflow position owing to high working capital
requirements.
Furthermore, the company's sanctioned working capital facilities
remain completely utilised primarily owing to high inventory
holding requirements due to the seasonality associated with
availability of key raw materials. The rating further continues to
remain constrained by the counterparty credit risks given the weak
financial position of Rajasthan state power distribution utilities
(discoms) and vulnerability of OGPRPL's profitability to volatility
in raw material prices whose availability is in turn exposed to
agro-climatic risks. ICRA, however, continues to take note of the
low offtake risks on account of presence of long-term power
purchase agreements (PPAs) with Rajasthan discoms.
Key rating drivers
Credit strengths
Low off-take risks owing to long-term PPAs signed with Rajasthan
discoms – OGPRPL has signed a long-term PPA with the state power
distribution utilities (discoms) of Rajasthan namely Jaipur Vidyut
Vitaran Limited, Jodhpur Vidyut Vitaran Limited and Ajmer Vidyut
Vitaran Limited for a period of 20 years. Presence of a long-term
PPA alleviates off-take risks for the company. The PPA provides for
escalation of variable cost of 5% per annum. Furthermore, the
tariff takes into consideration the normative raw material price of
INR2,450/MT at a fuel consumption rate of 1.23/unit Improved
performance of the biomass power plant – The PLF of the biomass
power plant has witnessed an improving
trend with PLF improving from 22.4% in FY2017 to 66.8% in FY2018
and further to 79.9% in FY2019 owing to improved availability of
raw materials.
Credit challenges
Operations remain exposed to fuel supply risks: The key raw
material used for power generation in the 8 MW biomass power plant
is mustard husk, whose availability is exposed to agro climatic
risks and is determined by the weather conditions during a given
year. Furthermore, the peak season for raw material availability is
January – March of a given year which, in turn, entails inventory
holding requirements for the company. The overall utilisation level
of the power plant is thus dependent on the extent of raw materials
available and the procurement strategy adopted by the company.
Vulnerability of profitability to movement in prices of key raw
materials: The overall performance of OGPRL is also dependent on
the price of the raw materials procured given that the PPA
considers a normative price of 2,450/MT. Given that the
availability of raw materials is exposed to seasonality as well as
weather conditions, the price, and thus the profitability of OGPRPL
is determined by the demand-supply scenario of raw materials in a
given year.
Liquidity position impacted by inventory holding requirements and
relatively high receivables: The liquidity position of the company
continues to remain stretched as funds are tied up in inventory
holding. Furthermore, a timing mismatch in receipt of payments from
the Rajasthan discoms and repayment of debt obligations, coupled
with limited availability of cushion in the sanctioned working
capital facilities has resulted in delays in repaying debt for the
company.
Liquidity position: Stretched
The liquidity position of the company is stretched as evident from
the delay in repayment of debt obligations. The working capital
limits stand fully utilised. The company has been meeting its
working capital funding requirements by delaying payments to its
creditors in the peak period.
Rating sensitivities
Positive Triggers: Improved working capital position which would
result in regularisation of debt servicing for a period of a
minimum of three months could trigger an upward revision in
rating.
OGPRPL was incorporated in November 2008 and is involved in
generating electrical power using biomass. The company has
commissioned an 8.0-MW biomass-based power plant in Kishanganj
(Baran, Rajasthan) in October 2013 and power is being sold to the
Rajasthan discoms under a 20-year PPA. OGPRPL is a part of the
Shriram Group of companies and is 100% held by Janati Bio Power
Limited.
In FY2019, the company reported a net loss of INR44.11 crore on an
operating income of INR32.41 crore, as compared to a net profit of
INR3.52 crore on an operating income of INR30.09 crore in the
previous year.
POBI TECHNOLOGIES: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Pobi Technologies & Constructions Private Limited
Karangapara Road, Durgapur
West Bengal 713201
Insolvency Commencement Date: December 11, 2019
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: June 8, 2020
Insolvency professional: Shashi Agarwal
Interim Resolution
Professional: Shashi Agarwal
Subarna Appartment
Opp. Udayan Club
21N, Block-A, New Alipore
Kolkata 700053
E-mail: shashiagg@rediffmail.com
pobi6750@rediffmail.com
Last date for
submission of claims: December 31, 2019
PRAKASH SHELLAC: Ind-Ra Lowers LongTerm Issuer Rating to 'D'
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Prakash Shellac
Factory's Long-Term Issuer Rating to 'IND D (ISSUER NOT
COOPERATING)' from 'IND B+ (ISSUER NOT COOPERATING)'. The issuer
did not participate in the rating exercise despite continuous
requests and follow-ups by the agency. Thus, the rating is based on
the best available information. Therefore, investors and other
users are advised to take appropriate caution while using these
ratings.
The instrument-wise rating action is:
-- INR50 mil. Fund-based working capital limit (long term)
downgraded with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information.
KEY RATING DRIVERS
The downgrade reflects delays in debt servicing by Prakash Shellac
Factory, the details of which are unavailable.
RATING SENSITIVITIES
Positive: Timely debt servicing for at least three consecutive
months will be positive for the ratings.
COMPANY PROFILE
Prakash Shellac Factory was established in 1988 as a partnership
firm. The firm manufactures different grades of machine-made and
handmade shellac.
PREMIER SECURITY: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Premier Security and Detective Bureau Private Limited
No. 77, First Main Road
CIT Nagar, Chennai
TN 600035
Insolvency Commencement Date: December 16, 2019
Court: National Company Law Tribunal, Chennai Bench
Estimated date of closure of
insolvency resolution process: June 13, 2020
Insolvency professional: Subramaniam Aneetha
Interim Resolution
Professional: Subramaniam Aneetha
A2 Sarada Apartments
17/6, Sringeri Mutt Road
R.A. Puram, Mandaiveli
Chennai, Tamil Nadu 600028
E-mail: aneethaca@gmail.com
Last date for
submission of claims: December 31, 2019
R K M POWERGEN: ICRA Reaffirms D Rating on INR1,254.27cr Loan
-------------------------------------------------------------
ICRA has reaffirmed ratings on certain bank facilities of R K M
Powergen Private Limited (RKMPPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based 1,254.27 [ICRA]D; reaffirmed and
Term Loan removed from ISSUER NOT
COOPERATING
Non-fund based 936.38 [ICRA]D; reaffirmed and
Facility removed from ISSUER NOT
COOPERATING
Fund-based 210.01 [ICRA]D; reaffirmed and
Cash Credit removed from ISSUER NOT
COOPERATING
Rationale
The reaffirmation of rating assigned to RKMPPL considers the
continued delays in servicing of debt obligations by the company
because of the large escalation in the capital cost for its 1440 MW
coal-based power generation project in Chhattisgarh and the
inadequacy of the revenues from sale of power to service the debt
obligations. The increase in project cost is mainly attributed to
the delays in implementation, leading to higher interest during
construction and escalation in imported boiler turbine generator
(BTG) equipment cost because of adverse exchange rate fluctuations.
While all the four units (360 MW each) of the project are
commissioned, the average plant load factor (PLF) for the project
remains low at ~20% over the past 30 months, given that the power
purchase agreements (PPA) signed with PTC India Limited (PTC;
3-year medium term PPA for 550 MW) has not commenced because of
non-availability of adequate working capital funding. Also, the
long-term PPA signed with Chhattisgarh state utility for 30% of the
project capacity is not operationalised by the utility and the
petition filed before the state regulator on the same remains
pending. Nonetheless, the company is currently supplying power
generated by the project to the Uttar Pradesh discoms under a
long-term PPA signed for 350 MW through tariff-based competitive
bidding.
However, ICRA takes note of the counterparty credit risks arising
out of its exposure to Uttar Pradesh discoms, which have a weak
financial health. Further, ICRA takes note of the fuel supply and
the pricing risks for the project from exposure to open market
purchases, given that the quantum available under the fuel supply
agreements (FSAs) signed with South Eastern Coalfields Limited
(SECL) is not adequate to meet the entire fuel requirement of the
plant. The escalation in capital cost, the dependence on open
market purchases for fuel and the lack of railway siding adversely
impact the cost competitiveness of tariffs offered by the project,
thereby affecting its merit order position of discoms and ability
to secure PPAs for the untied capacity.
Key rating drivers and their description
Credit strengths
Successful commissioning of entire project capacity and supply of
power to Uttar Pradesh discoms – The entire 1440 MW power
generation capacity of RKMPPL was commissioned by March 2019. The
company is supplying power to Uttar Pradesh discoms under a 25-year
long-term PPA for 350 MW secured through the competitive bidding
route.
Credit challenges
Delays in debt servicing – RKMPPL continues to delay its
servicing of debt obligations because of the inadequate cash
accruals in relation to the debt obligations, because of the large
escalation in the capital cost for its 1440-MW coal-based power
generation project in Chhattisgarh and inadequate power off-take.
The capital cost for the 1440 MW coal-based power project increased
to INR13,828 crore as of March 2019 against the appraised cost of
INR6,654 crore, because of a mix of reasons including delays in
implementation and increase in equipment and construction contract
costs.
Subdued PLF because of inadequate power off-take - The PLF levels
for the project remain subdued, with average PLF of ~20% over the
past 30 months, because of inadequate power off-take. This is owing
to non-operationalisation of the medium-term PPA signed with PTC
because of non-availability of adequate working capital funding.
Also, the long-term PPA signed with Chhattisgarh state utility is
not operationalised by the utility. This has in turn has impacted
the revenues and profitability of the company, leading to large
accumulated losses.
High counterparty credit risks - The counterparty credit risks
remain high for RKMPPL because of the exposure to Uttar Pradesh
discoms, which have weak financial health, leading to payment
delays. The overall pending dues, including disputed dues remained
high with debtor days of 281 days as on March 31, 2019.
Relatively weak cost competitiveness of tariff offered by the
project - The variable cost of generation for the company is
relatively high due to the dependence on open market purchases for
fuel and lack of railway siding. Also, the fixed cost of generation
is affected by the high level of project capital cost. This affects
the cost competitiveness of tariffs offered by the project, thereby
affecting its merit order position of the discoms and ability to
secure PPAs for the untied capacity.
Liquidity position: Poor
The liquidity position of the company is poor because of its
inability to generate adequate cash flows in relation to the debt
servicing obligations, because of a mix of reasons including large
increase in the capital cost of its coal-based project, sub-optimal
operating performance due to non-operationalisation of PPAs,
inadequate fuel tie-up and inability to secure adequate working
capital facilities.
Rating sensitivities
Positive triggers - The rating could be upgraded in case of receipt
of the confirmation from the lenders on timely servicing of debt
obligations by the company for a continuous period of at least
three months. The other triggers for upgrade include successful
implementation of resolution plan with the lenders at a sustainable
debt level and improvement in operating performance through
operationalisation of the PPAs signed with PTC India Limited and
CSEB.
Negative triggers - Not applicable
RKMPPL is a special purpose vehicle promoted by the Chennai-based
R.K. Powergen Group, Malaysia-based Mudajaya Group and Enerk
International Holdings Limited for the development of a 1440-MW
domestic coal-based power project in Janjgir Champa district of
Chhattisgarh. The first unit of the project was commissioned in
November 2015, followed by unit-2 in February 2016, unit-3 in
November 2017 and unit-4 in March 2019. The project cost stood at
INR13827.71 crore (INR9.60 crore per MW) as on March 2019 against
the appraised cost of INR6653.60 crore (INR4.62 crore per MW). The
project cost is expected to increase further because of pending
works including railway siding and installation of equipment to
comply with revised environmental norms. The project used BTG
sourced from Chinese players—boiler from China Western Power
Industrial Company and turbine generator set from Harbin Power
Engineering Company. The project has a long-term PPA for 350 MW
with Uttar Pradesh Power Corporation Limited (UPPCL) and a
medium-term PPA for 550 MW with PTC India Limited for a period of
three years. While the company also signed a PPA with Chhattisgarh
State Utility for 30% of its gross capacity under the
implementation agreement with the state government, the PPA remains
non-operational. The company has signed FSAs with SECL for 4.07
MTPA (million tonnes per annum).
RATHI ISPAT: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Rathi Ispat Limited
Registered office:
C-220, Savitri Nagar
Malviya Nagar, New Delhi
South Delhi DL 110017
IN
Corporate office:
A-2, South Side of GT Road Ispat Nagar
Ghaziabad 201009 UP
Insolvency Commencement Date: December 17, 2019
Court: National Company Law Tribunal, Delhi Bench
Estimated date of closure of
insolvency resolution process: June 14, 2020
Insolvency professional: Raj Kumar Gupta
Interim Resolution
Professional: Raj Kumar Gupta
S-203, 2nd Floor, Plot No. 1
Ajnara Tower-1
LSC, Savita Vihar
Nr. Yojna Vihar
New Delhi 110092
E-mail: rkgassociat@gmail.com
cirp.rathiispat@gmail.com
Last date for
submission of claims: January 2, 2020
RCBS REALTY: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: RCBS Realty Private Limited
111A, Shyama Prosad Mukherjee Road
2nd Floor, Kolkata
West Bengal 700026
Insolvency Commencement Date: December 13, 2019
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: June 10, 2020
(180 days from commencement)
Insolvency professional: Rajat Mukherjee
Interim Resolution
Professional: Rajat Mukherjee
302, Daga Complex II
103/5 B K Stret
Uttarpara, Hugli
West Bengal 712258
- and -
Office No. 30, 2nd Floor
Lawyer Chamber
Picket Road, Marine Lines
Mumbai 400002
E-mail: irp.rcbs@gmail.com
Last date for
submission of claims: December 27, 2019
RLJ CONCAST: ICRA Maintains 'D' Debt Rating in Not Cooperating
--------------------------------------------------------------
ICRA said the ratings for the INR61.40-crore bank facility of RLJ
Concast Private Limited continues to remain under 'Issuer Not
Cooperating' category. The Long-term rating is denoted as "[ICRA]D
ISSUER NOT COOPERATING". The Short-term rating is denoted as
"[ICRA]D ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based- 31.01 [ICRA]D; ISSUER NOT COOPERATING;
Term Loan Continues to remain under the
'Issuer Not Cooperating'
Category
Fund Based- 15.60 [ICRA]D; ISSUER NOT COOPERATING;
Cash Credit Continues to remain under the
'Issuer Not Cooperating'
Category
Non-fund Based 14.79 [ICRA]D; ISSUER NOT COOPERATING;
Continues to remain under the
'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
RLJ processes sponge iron and MS Ingots/billets. Its manufacturing
facility, with an installed capacity of 60,000 tonnes per annum
(TPA), is located at village Baragaon, Chunar area, District
Mirzapur (Uttar Pradesh). RLJ is promoted by Mr.
Arun Kumar Jain, who has also promoted S.A Iron & Alloys Private
Limited, a 90,000 TPA sponge iron unit in Jeevnathpur, Chandauli
(Uttar Pradesh). RLJ has recently set-up an induction furnace with
a capacity of 28,800 TPA and a 6MW power generation plant. The
projects started commercial production in October 2016.
ROHIT'S HERITAGE: Ind-Ra Lowers Long Term Issuer Rating to 'D'
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Rohit's Heritage
Jewellers Private Limited's Long-Term Issuer Rating to 'IND D
(ISSUER NOT COOPERATING)' from 'IND B+ (ISSUER NOT COOPERATING)'.
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 instrument-wise rating action is:
-- INR110 mil. Fund-based limits (Long term/ short Term)
downgraded with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Based on the best available
information
KEY RATING DRIVERS
The downgrade reflects delays in debt serving by the company, the
details of which are unavailable.
RATING SENSITIVITIES
Positive: Timely debt servicing for at least three consecutive
months will be positive for the ratings.
COMPANY PROFILE
Incorporated in 2000, Rohit's Heritage Jewellers manufactures and
trades jewelry.
S A IRON: ICRA Lowers Rating on INR39.50cr Loan to 'D'
------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of S A Iron
& Alloys Private Limited (SAI), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term-Fund 19.50 [ICRA]D ISSUER NOT COOPERATING;
Based/Cash Rating downgraded from [ICRA]BB
Credit (Stable) and continues to remain
under 'Issuer Not Cooperating'
category
Long Term-Fund 39.50 [ICRA]D ISSUER NOT COOPERATING;
Based TL Rating downgraded from [ICRA]BB
(Stable) and continues to remain
under 'Issuer Not Cooperating'
category
Short Term-Non- 3.00 [ICRA]D ISSUER NOT COOPERATING;
Fund Based Rating downgraded from [ICRA]A4
and continues to remain under
'Issuer Not Cooperating' category
Rationale
The rating downgrade reflects Delayed in Debt Servicing.
The rating is based on limited information on the entity's
performance since the time it was last rated in September 2018. The
lenders, investors and other market participants are thus 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.
As part of its process and in accordance with its rating agreement
with S A Iron & Alloys Private Limited, ICRA has been trying to
seek information from the entity so as to monitor its performance,
but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. In the absence of
requisite information and in line with SEBI's Circular No.
SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, ICRA's Rating
Committee has taken a rating view based on the best available
information.
Key rating drivers and their description
Credit challenges
There has been delays in debt as mentioned in care rationale.
Liquidity position: Poor
S A Iron & Alloys Private Limited liquidity profile is poor as
reflected by irregularities in debt servicing by entity.
SAI is engaged in the processing of sponge iron with an installed
capacity of 90,000 tonnes per annum (TPA) at village Jeevantpur,
Ramngar Industrial Area, District Chanduali (Uttar Pradesh). SAI is
promoted by Mr. Arun Kumar Jain, who has also promoted RLJ Concast
Private Limited (RLJ), a 60,000 TPA sponge iron unit in Baragaon,
District Mirzapur (Uttar Pradesh).
SAISONS TRADE: ICRA Lowers Rating on INR5cr Debentures to 'D'
-------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Saisons
Trade & Industry Private Limited (STIPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non Convertible 5.00 [ICRA]D; Rating downgraded
Debenture (NCD) From [ICRA]B(Stable)
ICRA has downgraded the long-term rating to [ICRA]D from [ICRA]B
with a Stable outlook, assigned earlier to the INR5.00 crore
non-convertible debenture programme of STIPL.
Material Event
STIPL has disclosed that there is a delay in interest payment on
its NCD, which was also confirmed by the debenture trustee (DT).
Rationale
The revision in rating of STIPL considers the recent instance of
delay in servicing of interest on NCD, as confirmed by the DT. The
liquidity position of the company remained stretched owing to the
due to the delay in receivables.
The rating favorably factors in the established track record of the
company in the electrical and electronics industry for
over a decade.
Key rating drivers and their description
Credit strengths
* Established track record in the electrical and electronics
industry for over a decade. STIPL was incorporated in 1999 and
manufactures electrical panels, fire panels and accessories, wire
harness, accessories for telecommunication towers and fabricated
products. The operations of the company are collectively managed by
Mr. Siddharth Shah and his brother, Mr. Ankit Shah, who have an
experience of over 15 years in the industry.
Credit challenges
* Recent delays in debt servicing. As confirmed by the debenture
trustee, STIPL has reported an instance of delay in servicing of
interest on NCD issued by the company in December 2019, due to
stretched liquidity position.
Liquidity Position: Poor
STIPL's liquidity profile is poor as reflected by recent
irregularity in debt servicing by company.
Rating sensitivities
Positive triggers - Regularisation of debt servicing
Negative triggers - Not applicable
Incorporated in 1999, STIPL manufactures electrical panels, fire
panels and accessories, wire harness, telecom products and various
fabricated products. It ventured into merchant exports of agro
commodities and chemicals in FY2018. The company's manufacturing
facility is in Bhiwandi (Thane district in Maharashtra) and its
registered office is in Mumbai.
SATNAM INDUSTRIES: Ind-Ra Lowers LongTerm Issuer Rating to 'D'
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Satnam
Industries' Long-Term Issuer Rating to 'IND D (ISSUER NOT
COOPERATING)' from 'IND B+ (ISSUER NOT COOPERATING)'. The issuer
did not participate in the rating exercise despite continuous
requests and follow-ups by the agency. Thus, the rating is based on
the best available information. Therefore, investors and other
users are advised to take appropriate caution while using these
ratings.
The instrument-wise rating actions are:
-- INR50 mil. Fund-based working capital limit (long term)
downgraded with IND D (ISSUER NOT COOPERATING) rating;
-- INR19.6 mil. Term loan (long term) downgraded with IND D
(ISSUER NOT COOPERATING) rating; and
-- INR20 mil. Non-fund-based limit (short term) downgraded with
IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information.
KEY RATING DRIVERS
The downgrade reflects delays in debt servicing by Satnam
Industries, the details of which are not available.
RATING SENSITIVITIES
Positive: Timely debt servicing for at least three consecutive
months would be positive for the ratings.
COMPANY PROFILE
Incorporated in 2007, Satnam Industries produces and processes rice
at its 8mt/hour manufacturing unit in Chhattisgarh.
SHARMA PHARMACEUTICAL: Ind-Ra Moves 'B+' Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Sharma
Pharmaceutical Private Limited (SPPL) Long-Term Issuer Rating to
the non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR50.00 mil. Fund-based limits migrated to non-cooperating
category with IND B+ (ISSUER NOT COOPERATING) / IND A4
(ISSUER NOT COOPERATING) rating; and
-- INR40.00 mil. Non-fund-based limits migrated to non-
cooperating category with IND A4 (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
December 27, 2018. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 2004 by Dayanand Sharma, SPPL manufactures
orthopedic implants and instruments in Vadodara.
SHETRON LIMITED: Ind-Ra Moves BB Issuer Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Shetron Limited's
(SL) Long-Term Issuer Rating at 'IND BB' with a Stable Outlook and
simultaneously migrated it to the non-cooperating category. The
issuer did not participate in the rating exercise despite
continuous requests and follow-ups by the agency. Thus, the rating
is on the basis of the best available information. 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:
-- INR320.1 mil. Long-term loan due on January 2031 affirmed and
migrated to non-cooperating category with IND BB (ISSUER NOT
COOPERATING) / Stable rating;
-- INR287.5 mil. Fund-based facilities affirmed and migrated to
non-cooperating category with IND BB (ISSUER NOT
COOPERATING)/ Stable /IND A4+ (ISSUER NOT COOPERATING)
rating; and
-- INR390.0 mil. Non-fund-based facilities affirmed and migrated
to non-cooperating category with IND BB (ISSUER NOT
COOPERATING)/ Stable /IND A4+ (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information.
KEY RATING DRIVERS
The affirmation reflects SL's continued moderate credit metrics and
declined EBITDA margins in FY19. The company's net leverage
(adjusted net debt/operating EBITDA) marginally deteriorated to
3.7x in FY19 (FY18: 3.5x) while interest coverage (operating
EBITDA/gross interest expense) remained stable year-on-year at
1.76x. Its EBITDA margins were average at 12.19% in FY19 (FY18:
12.36%; FY17:15.50%) due to a decline in revenue. The RoCE stood at
12% in FY19 (FY18: 11%).
SL's revenue fell 2.08% YoY to INR1,647.50 million in FY19 due to
the decline in the sales in the battery division The company booked
a turnover of INR873.90 million in H1FY20 (1HFY19: INR1,060
million).
However, the ratings are supported by the company's promoter's more
than three decades of experience in the business of metal packaging
and battery jackets manufacturing that has helped SL in
establishing healthy relationships with customers and suppliers.
RATING SENSITIVITIES
Positive: A substantial increase in the revenue and EBITDA margin
leading to an improvement in the credit metrics on a sustained
basis will be positive for the ratings.
Negative: Deterioration in the EBITDA margin leading to further
weakened credit metrics on a sustained basis could be negative for
the ratings.
COMPANY PROFILE
Shetron is a Bangalore-based company, listed on the Bombay Stock
Exchange. It was established in 1980 by Diwakar S. Shetty and his
associates jointly with the Karnataka State Industrial & Investment
Development Corporation. The company manufactures metal packaging,
printed metal sheets, metal cans & lug caps for foods and dry-cell
battery jackets & components.
SHREE AMBIKA: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Shree Ambika Sugars Limited
Eldorado, 5th Floor
112, Nungambakkam High Road
Chennai, Tamilnadu 600034
Insolvency Commencement Date: December 18, 2019
Court: National Company Law Tribunal, Division Bench II, Chennai
Estimated date of closure of
insolvency resolution process: June 15, 2020
(180 days from commencement)
Insolvency professional: Anurag Goel
Interim Resolution
Professional: Anurag Goel
10/349, First Floor
Sunder Vihar
Paschim Vihar
New Delhi 110087
E-mail: agoel@caannurag.com
cirp.ambikasugars@caanurag.com
Last date for
submission of claims: January 2, 2020
SKYLINE MILLARS: ICRA Keeps D on INR6cr Loans in Not Cooperating
----------------------------------------------------------------
ICRA said the ratings for the INR6.00 crore bank facilities of
Skyline Millars Limited (SML) continues to remain under the 'Issuer
Not Cooperating' category. The rating is denoted as "[ICRA]D ISSUER
NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based– 2.50 [ICRA]D ISSUER NOT COOPERATING;
Cash Credit Rating continues to remain under
the 'Issuer Not Cooperating'
category
Fund based– 3.50 [ICRA]D ISSUER NOT COOPERATING;
Term Loan Rating continues to remain under
the 'Issuer Not Cooperating'
category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
SML was incorporated on 28th November 1919 by the Walchand Group in
the name of ACME Manufacturing Company Limited. Mr. Ashok Patel
acquired the shares from Walchand Group and took over the
management of the company in 1972. Its name was changed to Millars
India Limited on 04th January 2002 and later on changed to Skyline
Millars Limited on 23rd October 2007 after sale of 43% stake to the
Skyline Group. The company is currently operating out of three
business segments viz: construction equipment realty and pipes. The
manufacturing facility of the construction equipment unit is in
Umreth Gujarat wherein the company manufactures transit mixers,
high speed pan mixers and batching and mixing plants. However, the
company is currently engaged in servicing of Old cranes and
supplying spare parts for the Construction Equipments supplied by
it earlier. SML is currently developing a residential unit in
Ghatkopar, Mumbai and a residential complex in Karjat. The company
is also into the manufacturing of concrete pipes and manholes and
has its manufacturing unit at Wada, Maharashtra which is
operational from December 2013.
VENKATESA PAPER: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Sri Venkatesa Paper and Boards Limited
148-D, Palani Road
S.V. Mills Post
Udumalpet, TN 642128
Insolvency Commencement Date: December 18, 2019
Court: National Company Law Tribunal, Coimbatore Bench
Estimated date of closure of
insolvency resolution process: June 15, 2020
Insolvency professional: S. Muthuraju
Interim Resolution
Professional: S. Muthuraju
No. 3, Sundaram Brothers Layout
Opp. to All India Radio
Trichy Road, Ramanathapuram
Coimbatore 641045
E-mail: smrajunaidu@gmail.com
Last date for
submission of claims: January 1, 2020
VISHNUSHIVA INFRASTRUCTURES: ICRA Cuts INR10cr Loan Rating to D
---------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of
Vishnushiva Infrastructures (VI), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 10.00 [ICRA]D ISSUER NOT COOPERATING;
Cash Credit Rating downgraded from
[ICRA]B+ (Stable) and continues
to remain under 'Issuer Not
Cooperating' category
Rationale
The rating downgrade reflects delays in debt servicing as confirmed
by the lender.
The rating is based on limited information on the entity's
performance since the time it was last rated in June 7, 2018. As
part of its process and in accordance with its rating agreement
with Vishnushiva Infrastructures, ICRA has been trying to seek
information from the entity so as to monitor its performance, but
despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite information
and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119,
dated November 1, 2016, ICRA's Rating Committee has taken a rating
view based on the best available information.
Key rating drivers and their description:
Credit strengths: NA
Credit challenges:
There has been delays in debt servicing as confirmed by the
lender.
Liquidity position: Poor
Vishnushiva Infrastructures liquidity profile is poor as reflected
by irregularities in debt servicing by entity.
Rating sensitivities:
Positive triggers: Regularization of debt servicing on a sustained
basis (more than three months) Negative triggers: NA.
Established in March 2008, Vishnushiva Infrastructures (VI) is a
partnership firm engaged in overburden removal, coal excavation
contract and road excavation contracts. The firm is majorly
involved in sub-contract and joint venture work for Sadbhav
Engineering Ltd. The firm is promoted by Mr. Birendra Rana and
other family members.
WOOLWAYS LIMITED: ICRA Keeps D on INR10cr Debt in Not Cooperating
-----------------------------------------------------------------
ICRA said the ratings for the INR10.00-crore bank facility of
Woolways (India) Limited continues to remain under 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA]D/[ICRA]D
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long/Short-term 10.00 [ICRA]D/D ISSUER NOT
Fund based COOPERATING 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.
WIL was incorporated in 1994 as a public limited company. It is
engaged in the manufacturing of readymade garments from its two
manufacturing facilities at Ludhiana, Punjab. The company is
promoted by Mr. Rakesh Nayar and his wife, Mrs. Babita Nayar, who
have over three decades of experience in readymade garment
manufacturing. The company has its own brands for children's wear,
'Unikid'. The company also manufactures knitting garments for other
players. WIL markets its product through its 21 retail outlets
spread across northern and central India. WIL also has tie-ups with
online aggregators for marketing and selling its products online.
The company derives around 15-20% of its revenues from exports to
Middle Eastern markets, such as Saudi Arabia and the United Arab
Emirates (UAE), as well as to China.
=========
J A P A N
=========
JAPAN DISPLAY: Considers Selling Key Plant to Apple and Sharp
-------------------------------------------------------------
The Japan Times reports that Japan Display Inc. is considering
selling a major plant in central Japan to Apple Inc. and Sharp
Corp. in an apparent bid to improve its balance sheet, sources
close to the matter said Dec. 27.
The struggling display-maker, also known as JDI, closed the plant
in Hakusan, Ishikawa Prefecture, in July due to weak demand for
smartphone panels from Apple, the report recalls.
The Japan Times relates that as part of efforts to turn its
business around, Japan Display was in talks with the U.S.
technology giant to sell part of the plant's facilities for $200
million.
But the company now appears to be set on selling the whole factory
to Apple and Sharp for around JPY80 billion to JPY90 billion
(US$731 million to US$822 million), the sources said, adding that
both sides are trying to reach a deal by the end of March.
By reducing fixed costs through the sale of the Hakusan Plant, JDI
apparently aims to improve its cash-flow situation, the report
notes.
"JDI is considering all of the options regarding handling of the
Hakusan Plant but nothing has been decided," the company said in a
statement on Dec. 27, The Japan Times relays.
To examine those options, it also said, "JDI is currently running a
comprehensive check on the production equipment and infrastructure
facilities at the Hakusan Plant."
The Japan Times relates that Sharp, also in a statement released
Dec. 27, said the firm was carefully examining how the possible
acquisition of the Hakusan Plant would contribute to its earnings
and whether the deal would pose any risk to its business
operations.
According to The Japan Times, the plant used to be one of Japan
Display's main factories for producing crystal display panels for
Apple's iPhones following the factory's launch at the end of 2016.
Apple provided a loan that covered most of its construction costs,
totaling JPY170 billion, but the repayments to Apple have weighed
on its financial situation, the report says.
The Japan Times relates that JDI said in mid-September, it had
started talks with Chinese Harvest Tech Investment Management Co.
regarding a plan to produce next-generation OLED panels for
smartphones at the plant.
But at the end of September, the Chinese fund withdrew from a
bailout plan to provide a capital injection of up to JPY80 billion,
the report notes.
According to the report, JDI said in mid-December it had basically
agreed to receive a capital injection of up to JPY90 billion from
Ichigo Asset Management Ltd. as a new sponsor. JDI is expected to
receive the financial support from the asset management firm in
February or March after the negotiations are finalized, the report
relates.
Japan Display was established in 2012 through the merger of the
display operations of Sony Corp., Hitachi Ltd. and Toshiba Corp.
with support from the state-backed fund INCJ Ltd.
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S I N G A P O R E
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HYFLUX LTD: Axes Old Agreement with Mitsubishi on TuasOne Project
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Rachel Mui at The Business Times reports that Hyflux Ltd on Dec. 26
said it has replaced an old settlement agreement entered into with
Mitsubishi Heavy Industries (MHI) on Feb. 15 in relation to the
TuasOne waste-to-energy project, and entered into a deed for a
novation of the engineering, procurement and construction (EPC)
contract to MHI.
BT relates that the new agreement also covers the division between
MHI and Hydrochem of the remaining payments to be made under the
EPC contract, and the discharge of certain claims, including a
resolution of the matters raised by Hydrochem against MHI via an
arbitration notice it filed in January this year.
Under the previous agreement, MHI agreed to an early injection of
an additional SGD23 million equity, if there is a firm deal between
the parties by end-January. The deal would help to address the
liquidity problems and ensure completion of the SGD750 million
project, said Hyflux founder and chief executive officer Olivia Lum
in an affidavit on Jan. 11, the report says.
According to BT, the old agreement also included the making of
payments to subsidiaries of MHI as subcontractors for the TuasOne
project, the discharge of certain claims including those between
Hyflux and Hydrochem on one hand and MHI on the other, and
addressed certain operational matters regarding the project so as
to facilitate its completion.
In a regulatory filing on Dec. 26, Hyflux also noted that entry
into the new settlement agreement and the deed of novation was
necessary to ensure continued funding for the project,
notwithstanding the debt restructuring of the group, which is
ongoing, BT relays.
The novation is expected to have a material effect on the group's
financial performance, Hyflux said, adds BT.
About Hyflux
Singapore-based Hyflux Ltd -- https://www.hyflux.com/ -- provides
various solutions in water and energy areas worldwide. The company
operates through two segments, Municipal and Industrial. The
Municipal segment supplies a range of infrastructure solutions,
including water, power, and waste-to-energy to municipalities and
governments. The Industrial segment supplies infrastructure
solutions for water to industrial customers. It has business
operations across Asia, Middle East and Africa.
As reported in the Troubled Company Reporter-Asia Pacific on May
24, 2018, Hyflux Ltd. said that the Company and five of its
subsidiaries, namely Hydrochem (S) Pte Ltd, Hyflux Engineering Pte
Ltd, Hyflux Membrane Manufacturing (S) Pte. Ltd., Hyflux Innovation
Centre Pte. Ltd. and Tuaspring Pte. Ltd. have applied to the High
Court of the Republic of Singapore pursuant to Section 211B(1) of
the Singapore Companies Act to commence a court supervised process
to reorganize their liabilities and businesses. The Company said
it is taking this step in order to protect the value of its
businesses while it reorganises its liabilities.
The Company has engaged WongPartnership LLP as legal advisors and
Ernst & Young Solutions LLP as financial advisors in this process.
LIBRA GROUP: Supplier Yick Hoe Files Winding Up Petition vs. Unit
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Ng Ren Jye at The Business Times reports that distressed Libra
Group said on Dec. 26 its supplier Yick Hoe Steel Industries had
filed a winding up petition dated Nov. 12 in the High Court of
Malaya against Libra's subsidiary, Libra Engineering &
Manufacturing Sdn Bhd.
The winding up petition will be heard on Feb. 10, 2020 at 9:00
a.m., BT relates.
The Catalist-listed company added that it is taking legal advice on
its next steps and "considering its options with regard to the
winding up petition," the report relays.
According to BT, the Singapore High Court had granted Libra a
six-month debt moratorium on Oct. 14.
Before the moratorium was granted, one of Libra's creditors, United
Overseas Bank (UOB), had in September sent letters of demand
claiming that certain default events had happened with banking
facilities granted to Libra Engineering Pte Ltd, the report says.
According to earlier bourse filings by Libra, UOB asked for more
than SGD1.3 million to be paid - which represents the sums
guaranteed, as well as outstanding amounts, under the entire credit
line, BT relates.
In November, UOB appointed receivers for Libra's mortgaged property
in Loyang Drive, recalls BT.
Libra suspended trading in August when it could no longer continue
as a going concern due to the various claims filed against two
subsidiaries of the company, BT adds.
About Libra Group
Libra Group Limited provides integrated M&E services as a
sub-contractor. The Company's services include the contracting and
installation of ACMV systems, fire alarms and fire protection
systems, electrical systems as well as sanitary and plumbing
services. Libra also manufactures and sells ACMV related products.
As reported in the Troubled Company Reporter-Asia Pacific on Oct.
18, 2019, The Business Times said the Singapore High Court has
granted Libra Group a six-month reprieve against its creditors.
Libra's creditors include UOB, which issued a letter of demand on
Oct. 8 for US$18.8 million, and Maybank Singapore, which on Sept. 3
issued a letter of demand to possess Libra's property at 34 Sungei
Kadut Loop.
*********
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,
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Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
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Editors.
Copyright 2019. All rights reserved. ISSN: 1520-9482.
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