/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/220411.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, April 11, 2022, Vol. 25, No. 66 Headlines A U S T R A L I A BACKLOT STUDIOS: First Creditors' Meeting Set for April 22 CORONADO GLOBAL: Moody's Ups CFR to B1 & Alters Outlook to Stable EXECUTIVE GROUP: First Creditors' Meeting Set for April 14 FORTESCUE METALS: S&P Rates US$1.5BB Senior Unsecured Notes 'BB+' LIBERTY SERIES 2020-1: Moody's Ups Rating on Cl. F Notes From Ba1 MOTOR2U PTY: Second Creditors' Meeting Set for April 14 RUBY BOND 2022-1: S&P Assigns B Rating on Class F Notes SOUTH AUSTRALIA TRUCK: First Creditors' Meeting Set for April 22 TOKYO SUSHI: Second Creditors' Meeting Set for April 14 [*] Fitch Affirms 33 Tranches Across 4 Latitude Credit Card Trusts C H I N A BEIGENE LTD: Taps Auditor in Search for Way to Avoid Delisting CHINA HONGQIAO: S&P Affirms 'BB-' LT ICR & Alters Outlook to Pos. KAISA GROUP: In Deal With State-Owned Builder and Bad-Debt Manager REDSUN PROPERTIES: Moody's Lowers CFR to B3, Outlook Remains Neg. TIMES CHINA: Moody's Lowers CFR to B2, Outlook Remains Negative I N D I A A.R.T FABRICATION: CARE Lowers Rating on INR7.17cr Loan to B ACTION ISPAT: Insolvency Resolution Process Case Summary AFFORDABLE ROBOTIC: CRISIL Hikes Rating on INR14cr Loan to B+ AKSHAR IMPEX: CRISIL Withdraws B+ Rating on INR53.94cr Loan ANAND DIVINE: Insolvency Resolution Process Case Summary BRICS COMMODITIES: Voluntary Liquidation Process Case Summary CMJ BREWERIES: CARE Reaffirms D Rating on INR176.93cr LT Loan CORNING FINOFLEX: Voluntary Liquidation Process Case Summary D S TOLL: CARE Lowers Rating on INR171.67cr LT Loan to D DAULAT RAM: CARE Reaffirms D Rating on INR76.50cr LT/ST Loan DCW LIMITED: Insolvency Resolution Process Case Summary DR. GANESAN'S HITECH: Voluntary Liquidation Process Case Summary EAGLE CORP: Liquidation Process Case Summary EKDANT BUILDTECH: Liquidation Process Case Summary EMAAR LEAD: CRISIL Assigns B Rating to INR4cr Term Loan ENTERPRISES BHOPAL: CARE Reaffirms B+ Rating on LT Bank Debts EXPAT ENGINEERING: CARE Reaffirms B Rating on INR11cr LT Loan FEEDBACK ENERGY: CARE Reaffirms D Rating on INR209.68cr LT Loan FOODCO DELICACIES: Insolvency Resolution Process Case Summary HASH EDUCATION: Voluntary Liqidation Process Case Summary HPT CONSTRUCTIONS PRIVATE: Insolvency Resolution Case Summary IMP POWERS LIMITED: Insolvency Resolution Process Case Summary INNOVATIVE IDEALS: CARE Moves D Debt Ratings to Not Cooperating J.S. GROVER: CARE Assigns B Rating to INR10cr LT Loan JAYPEE CEMENT: CARE Reaffirms D Rating on INR2,312.94cr Loan JICS LOGISTIC: CARE Lowers Rating on INR5.0cr LT Loan to D JR MODI ASSOCIATES: Insolvency Resolution Process Case Summary KRISH CEREALS: CARE Hikes Rating on INR23cr LT Loan to B MAP REFOILS: Insolvency Resolution Process Case Summary MSH SAREES PRIVATE: Insolvency Resolution Process Case Summary PEAK TREASURE: Voluntary Liquidation Process Case Summary PRABAL ROLLER: CRISIL Lowers Rating on INR2.9cr LT Loan to D R R HOLIDAY: CARE Reaffirms D Rating on INR60cr LT Loan RAHUL SHIVHARE: CARE Reaffirms B Rating on INR4.70cr LT Loan RAMA NEWSPRINT: Insolvency Resolution Process Case Summary RAYMON PATEL: Insolvency Resolution Process Case Summary RICHA REALTORS: Insolvency Resolution Process Case Summary ROYAL GARDEN: CARE Lowers Rating on INR9.07cr LT Loan to B SANTASHA REAL: Insolvency Resolution Process Case Summary SASTHAA CONSTRUCTIONS: CARE Reaffirms B+ Rating on INR3.60cr Loan SIMHAPURI ENERGY: High Court Stays Liquidation Process SLACK TECHNOLOGIES: Voluntary Liquidation Process Case Summary SOYUG PRIVATE: CRISIL Assigns B+ Rating to INR25cr Term Loan SPECULUM PLAST: CARE Reaffirms B+ Rating on INR8.22cr LT Loan TALECH SOFTWARE: Voluntary Liquidation Process Case Summary UJJWAL LUXURY: CARE Reaffirms B- Rating on INR5.37cr LT Loan UT LIMITED: Liquidation Process Case Summary VRMX CONCRETE INDIA: Insolvency Resolution Process Case Summary WILSON TOOL: Voluntary Liquidation Process Case Summary M A L A Y S I A 1MDB: US Jury Convicts Former Goldman Banker M O N G O L I A MONGOLIAN MINING: S&P Puts 'B-' ICR on CreditWatch Negative N E W Z E A L A N D BISCUIT CREEK: Creditors' Proofs of Debt Due on May 20 HUFCOR NEW ZEALAND: Creditors' Proofs of Debt Due on May 11 INSPIRACION LIMITED: Creditors' Proofs of Debt Due on May 20 MANCHESTER UNITY: Fitch Affirms 'BB-' Insurer Fin. Strength Rating MTF PANTERA 2021: Fitch Hikes Rating on Class F Notes to 'BB+' TOKOTEA FRESH: Court to Hear Wind-Up Petition on May 5 YEE GOOD: Creditors' Proofs of Debt Due on May 18 S I N G A P O R E ASIATRAVEL.COM HOLDINGS: To Appeal Delisting Notice From SGX ESS ASIAN NETWORKS: Creditors' Proofs of Debt Due on May 8 KRISCON ENGINEERING: Court to Hear Wind-Up Petition on April 22 KS ENERGY: Deloitte Appointed as Provisional Liquidators RDV REALTY: PwC Appointed as Provisional Liquidators TAIGER SINGAPORE: Placed in Provisional Liquidation S R I L A N K A SRI LANKA: Needs US$3 Billion in Few Months to Stave Off Crisis V I E T N A M BIM LAND: Fitch Affirms 'B' LongTerm IDR, Outlook Stable - - - - - ================= A U S T R A L I A ================= BACKLOT STUDIOS: First Creditors' Meeting Set for April 22 ---------------------------------------------------------- A first meeting of the creditors in the proceedings of The Backlot Studios Pty Ltd ATF The Backlot Studios Trust and The Backlot Films Pty Ltd will be held on April 22, 2022, at 11:00 a.m. and 12:00 p.m. via virtual meeting technology. Leigh Dudman and Stephen Dixon of Hamilton Murphy Advisory were appointed as administrators of The Backlot Studios and The Backlot Films on April 8, 2022. CORONADO GLOBAL: Moody's Ups CFR to B1 & Alters Outlook to Stable ----------------------------------------------------------------- Moody's Investors Service has upgraded Coronado Global Resources Inc.'s (Coronado) corporate family rating to B1 from B2. At the same time, Moody's has upgraded the backed senior secured note rating of Coronado Finance Pty Ltd to B1 from B2. Moody's has also changed the outlook to stable from positive for both. RATINGS RATIONALE The upgrade of the Coronado's ratings reflects the substantial improvement in its financial profile and liquidity. Primarily a metallurgical (met) coal producer, Coronado has benefited from the recovery and rise in met coal prices over the past year. Also supportive of Coronado's credit profile is its improved capital structure following its refinancing initiatives last year. For the fiscal year ended December 2021, Coronado reported EBITDA of $486 million, up 804% on the prior year's level; and reached a net cash position of $123 million. So far in 2022 met coal prices have been averaging at record high levels on the back of supply issues and more recently the Russia-Ukraine military conflict. Moody's expects met coal prices to moderate but remain elevated in the near term as global supply remains tight. As such, Moody's expects Coronado to continue to generate higher earnings and cash flow over 2022, further strengthening its financial position. Moody's believes met coal prices will decline from the current very high spot levels over the next 12-18 months towards the mid-to-high end of the rating agency's medium-term price sensitivity range of $110-$180/tonne, as major exporters outside of Russia increase exports as weather-related disruptions subside and border restrictions ease. Nevertheless, Moody's estimates that Coronado's gross debt/EBITDA should remain comfortably below 1x. Coronado repaid 10% of its senior secured bond in November 2021, and Moody's believes it is likely the company will exercise its option to repay a further 10% in November 2022. In May 2021, Coronado carried out an equity raising, issued a $350 million secured bond and entered into a $100 million senior secured asset-based revolving credit facility. At the same time, the company repaid and cancelled its syndicated facility agreement. These steps have improved Coronado's capital structure and liquidity meaningfully, as well as relieved the company from the risk of covenant breaches given the secured bond does not have maintenance covenants. The restrictions placed by the secured bond on additional indebtedness and large dividend payouts, which have in the past weakened Coronado's balance sheet, reduce the risk of capital management initiatives that would be adverse to creditors. The B1 rating is supported by Coronado's position as a sizable met coal producer with geographically diversified operations in Australia and the United States. At the same time, the rating is constrained by the company's exposure to movements in met coal prices, and reliance on two operations for the vast majority of earnings. In addition, Coronado's rating is constrained by the Stanwell agreement, which requires Coronado to supply thermal coal to Queensland government's Stanwell Corporation at an agreed contract price, which is currently less than the cost of supply. The agreement also requires Coronado to pay a rebate on met coal exported from the Curragh mine. LIQUIDITY Moody's expects Coronado will maintain very good liquidity over the next 12-18 months supported by high realised coal prices. While Coronado could look to use excess liquidity for growth and/or shareholder returns, Moody's expects Coronado to continue maintaining good liquidity of at least $200 million through all points in the cycle (inclusive of cash and the $100 million undrawn asset-based revolving credit facility) to provide a buffer against price downturns. OUTLOOK The stable rating outlook reflects Moody's view that over the next 12-18 months Coronado will generate strong cash flows, maintain low leverage and good liquidity levels. ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS (ESG) Coronado's ESG credit impact score is highly negative (CIS-4). The score reflects its high exposure to environmental risk and very high exposure to social risks stemming from coal mining operations, and high exposure to governance risks stemming from Coronado's majority private equity ownership and a history of paying large debt-funded dividends. The exposure to environment risk for Coronado is highly negative (E-4 issuer profile score). Environment risk is driven by carbon transition risk – albeit over a longer horizon compared to thermal coal producers. The steel sector, which consumes met coal, is moving slowly towards electric arc furnaces and emerging technologies suggest some potential for carbon-free blast furnace steel production over a longer horizon. The exposure to social risk for Coronado is very highly negative (S-5 issuer profile score). Social risk is driven primarily by coal mining's high exposure to human capital, health and safety, responsible production and demographic and societal trends. In regards to safety performance, Coronado's Total Recordable Injury Frequency Rate compares well against industry averages, with the Australian operation demonstrating considerable improvement in 2021. However, Moody's notes the occurrence of two fatalities at the Curragh operation in 2020 and 2021, which have disrupted operations. The exposure to governance risk for Coronado highly negative (G-4 issuer profile score). Governance risk reflects the company's majority private equity ownership, albeit reduced to just over 50% following recent equity raisings. Moody's notes shareholder-friendly initiatives have occurred in the past, but that the current capital structure now places restrictions on any material dividend payouts. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Further upward movement in the rating is unlikely in the near term. Nonetheless, a potential upgrade would consider material improvements in the company's business profile such as scale, cost profile and diversity, as well as the company's commitment to a conservative financial policy. Moody's could downgrade Coronado's rating if debt/EBITDA exceeds 4x, material debt-funded acquisitions or dividends are undertaken, and/or if the company's cash generation and liquidity deteriorates. The principal methodology used in these ratings was Mining published in October 2021. PROFILE Coronado Global Resources Inc. (ASX:CRN) was founded in 2011 with the intention to acquire and develop existing met coal operations. It is majority-owned by The Energy & Minerals Group (EMG), a private investment firm. CRN has been listed on the Australian Securities Exchange (ASX) since 2018. EXECUTIVE GROUP: First Creditors' Meeting Set for April 14 ---------------------------------------------------------- A first meeting of the creditors in the proceedings of Executive Group Services Pty Ltd will be held on April 14, 2022, at 10:00 a.m. via virtual meeting technology. Andrew Schwarz and Jon Howarth of AS Advisory were appointed as administrators of Executive Group on April 4, 2022. FORTESCUE METALS: S&P Rates US$1.5BB Senior Unsecured Notes 'BB+' ----------------------------------------------------------------- S&P Global Ratings has assigned its 'BB+' issue rating and '4' recovery rating to FMG Resources (August 2006) Pty Ltd.'s proposed senior unsecured US$1.5 billion notes, split into US$700 million and US$800 million tranches of eight years and 10 years, respectively. The parent company and guarantor, Fortescue Metals Group Ltd. (Fortescue; BB+/Stable/--), plans to use the proceeds of the 10-year notes, designated "green notes," to fund the company's decarbonization ambitions, including projects related to renewable energy production and storage and clean transportation. Proceeds from the eight-year tranche are slated for general corporate purposes. Separate to Fortescue's decarbonization strategy, the company on March 29, 2022, announced that its subsidiary Fortescue Future Industries (FFI) has signed a memorandum of understanding with E.ON SE to supply Germany with up to 5 million metric tons a year of green, renewable hydrogen by 2030. S&P notes the associated high-level expenditure assessment by the Company Chairman of at least A$50 billion by FFI to deliver the hydrogen is not a commitment by Fortescue. S&P said, "At this time, the only commitment to FFI by Fortescue is 10% of net profit after tax a year, estimated at US$1 billion for fiscal 2021 and this commitment is factored into our analysis. That said, we expect FFI activities to ramp up in coming years and therefore future FFI investment including the associated amount and timing of any capital requirements and resultant estimated earnings trajectory are likely to be increasingly important in our analysis of Fortescue." S&P said, "FMG Resources (August 2006) Pty Ltd. is a wholly owned financing vehicle of Fortescue. The '4' recovery rating reflects our expectations of average recovery prospects (30%-50%; rounded estimate: 40%) under our hypothetical default scenario. Our simulated default occurs in 2027. In our view, Fortescue's creditors would realize greater value through reorganizing the company as a going concern than liquidating its assets." LIBERTY SERIES 2020-1: Moody's Ups Rating on Cl. F Notes From Ba1 ----------------------------------------------------------------- Moody's Investors Service has upgraded the ratings on nine classes of notes issued by two Liberty Series residential mortgage-backed securities (RMBS) transactions. The affected ratings are as follows: Issuer: Liberty Series 2020-1 Class B Notes, Upgraded to Aaa (sf); previously on Mar 15, 2021 Upgraded to Aa1 (sf) Class C Notes, Upgraded to Aa1 (sf); previously on Sep 13, 2021 Upgraded to Aa2 (sf) Class D Notes, Upgraded to Aa2 (sf); previously on Sep 13, 2021 Upgraded to A1 (sf) Class E Notes, Upgraded to A1 (sf); previously on Sep 13, 2021 Upgraded to Baa1 (sf) Class F Notes, Upgraded to A3 (sf); previously on Sep 13, 2021 Upgraded to Ba1 (sf) Issuer: Liberty Series 2020-2 Class C Notes, Upgraded to Aaa (sf); previously on Sep 13, 2021 Upgraded to Aa1 (sf) Class D Notes, Upgraded to Aa1 (sf); previously on Sep 13, 2021 Upgraded to Aa3 (sf) Class E Notes, Upgraded to Aa3 (sf); previously on Sep 13, 2021 Upgraded to Baa1 (sf) Class F Notes, Upgraded to A3 (sf); previously on Sep 13, 2021 Upgraded to Ba1 (sf) RATINGS RATIONALE The upgrades were prompted by a rapid increase in note subordination available for the affected notes due to high loan prepayment amounts and good performance of the underlying portfolios to date. Liberty Series 2020-1 Following the February 2022 payment date, the note subordination available for the Class B Notes has increased to 9.4% from 8.1% at the time of the last rating action for these notes in March 2021. Note subordination available for the Class C, Class D, Class E and Class F Notes has increased to 7.3%, 5.8%, 4% and 3.6% respectively, from 6.5%. 4.9%, 3.1% and 2.7% at the time of the last rating action for these notes in September 2021. As of end-February 2022, 1.9% of the outstanding pool was 30-plus days delinquent, and 1.0% was 90-plus days delinquent. The deal has not incurred any losses to date. Based on the observed performance to date and loan attributes, Moody's has updated its expected loss assumption to 1.4% of the outstanding pool (equivalent to 0.7% of the original pool balance), compared with 1.2% of the outstanding pool at the time of the last rating action (equivalent to 0.8% of the original pool balance). Moody's has lowered its MILAN CE assumption to 6% from 6.4% since the last rating action, based on the current portfolio characteristics. Liberty Series 2020-2 Following the February 2022 payment date, the note subordination available for the Class C, Class D, Class E and Class F Notes has increased to 8.9%, 6.5%, 4.2% and 3.4%, respectively, from 6.6%, 4.8%, 3.2% and 2.6% at the time of the last rating action for these notes in September 2021. As of end-February 2022, 1.4% of the outstanding pool was 30-plus days delinquent, and 0.2% was 90-plus days delinquent. The deal has not incurred any losses to date. Based on the observed performance to date and loan attributes, Moody's has updated its expected loss assumption to 1.4% of the outstanding pool (equivalent to 0.7% of the original pool balance), compared with 1.3% of the outstanding pool at the time of the last rating action (equivalent to 0.8% of the original pool balance). Moody's has lowered its MILAN CE assumption to 6% from 6.5% since the last rating action, based on the current portfolio characteristics. The transactions are Australian RMBS secured by portfolios of residential mortgage loans, originated and serviced by Liberty Financial Pty Ltd, an Australian non-bank lender. A small portion of the portfolios consists of loans extended to borrowers with impaired credit histories or loans made on a limited documentation basis. The principal methodology used in these ratings was "Moody's Approach to Rating RMBS Using the MILAN Framework" published in February 2022. Factors that would lead to an upgrade or downgrade of the ratings: Factors that could lead to an upgrade of the ratings include: (1) performance of the underlying collateral that is better than Moody's expectations, and (2) an increase in credit enhancement available for the notes. Factors that could lead to a downgrade of the ratings include: (1) performance of the underlying collateral that is worse than Moody's expectations, (2) a decrease in credit enhancement available for the notes, and (3) a deterioration in the credit quality of the transaction counterparties. MOTOR2U PTY: Second Creditors' Meeting Set for April 14 ------------------------------------------------------- A second meeting of creditors in the proceedings of Motor2u Pty Ltd has been set for April 14, 2022, at 11:00 a.m. via Zoom. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by April 13, 2022, at 5:00 p.m. Kelly Dale Meyn and Dermott Joseph McVeigh of Avior Consulting were appointed as administrators of Motor2u Pty on March 10, 2022. RUBY BOND 2022-1: S&P Assigns B Rating on Class F Notes ------------------------------------------------------- S&P Global Ratings assigned its ratings to seven classes of residential mortgage-backed securities (RMBS) issued by Perpetual Corporate Trust Ltd. as trustee for Ruby Bond Trust 2022-1. Ruby Bond Trust 2022-1 is a securitization of prime residential mortgage loans originated by BC Securities Pty Ltd. (BCS). The ratings assigned to the floating-rate RMBS reflect the following factors. The credit risk of the underlying collateral portfolio, which predominantly comprises residential mortgage loans to nonresidents of Australia, and the credit support provided to each class of notes are commensurate with the ratings assigned. Credit support is provided by subordination, excess spread, if any, and a loss reserve funded by the trapping of excess spread, subject to conditions. S&P's assessment of credit risk considers BCS's underwriting standards and approval process as well as its servicing quality. The rated notes can meet timely payment of interest and ultimate payment of principal under the rating stresses. Key rating factors are the level of subordination provided, the loss reserve, the principal draw function, the liquidity reserve, the interest-rate swap, and the provision of an extraordinary expense reserve. S&P's analysis is on the basis that the notes are fully redeemed via the principal waterfall mechanism under the transaction documents by their legal final maturity date, and it assumes the notes are not called at or beyond the call-option date. S&P said, "Our ratings also take into account the counterparty exposure to Australia and New Zealand Banking Group Ltd. as the bank account provider and Natixis S.A. as interest-rate swap provider. Natixis provides an interest-rate swap to hedge the interest-rate risk between any fixed-rate mortgage loans and the floating-rate obligations on the notes. The transaction documents for the swap and bank account include downgrade language consistent with S&P Global Ratings' counterparty criteria. "We also have factored into our ratings the legal structure of the trust, which is established as a special-purpose entity and meets our criteria for insolvency remoteness. "We have assessed the servicing and standby servicing arrangements in this transaction under our "Global Framework For Assessing Operational Risk In Structured Finance Transactions" criteria, published on Oct. 9, 2014, and concluded that there are no constraints on the maximum rating that can be assigned to the notes." Ratings Assigned Ruby Bond Trust 2022-1 Class A1-MM, A$95.00 million: AAA (sf) Class A1-AU-G, A$125.70 million: AAA (sf) Class B-G, A$39.74 million: AA (sf) Class C-G, A$47.72 million: A (sf) Class D, A$43.98 million: BBB (sf) Class E, A$30.20 million: BB (sf) Class F, A$19.90 million: B (sf) Class G, A$13.76 million: Not rated SOUTH AUSTRALIA TRUCK: First Creditors' Meeting Set for April 22 ---------------------------------------------------------------- A first meeting of the creditors in the proceedings of South Australia Truck & Machinery Pty Ltd will be held on April 22, 2022, at 3:00 p.m. via virtual meeting technology. Thomas Stuart Otway of SV Partners was appointed as administrator of South Australia Truck on April 8, 2022. TOKYO SUSHI: Second Creditors' Meeting Set for April 14 ------------------------------------------------------- A second meeting of creditors in the proceedings of Tokyo Sushi Kitchen Franchising Pty Ltd has been set for April 14, 2022, at 11:00 a.m. via virtual meeting technology. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by April 13, 2022, at 5:00 p.m. Con Kokkinos of Worrells Solvency & Forensic Accountants was appointed as administrator of Tokyo Sushi on March 11, 2022. [*] Fitch Affirms 33 Tranches Across 4 Latitude Credit Card Trusts ------------------------------------------------------------------ Fitch Ratings has affirmed the ratings of 33 tranches across four Latitude credit card trusts. The transactions are securitisations of Australian and New Zealand credit card receivables originated by Latitude Finance Australia entities. DEBT RATING PRIOR ---- ------ ----- Australian Sales Finance and Credit Cards Trust A LT AAAsf Affirmed AAAsf C LT Asf Affirmed Asf D LT BBBsf Affirmed BBBsf E LT BBsf Affirmed BBsf Latitude Australia Credit Card Master Trust 2017-2 Class A1 AU3FN0037826 LT AAAsf Affirmed AAAsf 2017-2 Class A2 AU3FN0037834 LT AAAsf Affirmed AAAsf 2017-2 Class B AU3FN0037842 LT AAsf Affirmed AAsf 2017-2 Class C AU3FN0037859 LT Asf Affirmed Asf 2017-2 Class D AU3FN0037867 LT BBBsf Affirmed BBBsf 2017-2 Class E AU3FN0037875 LT BBsf Affirmed BBsf 2017-VFN LT Asf Affirmed Asf 2018-1 Class A1 AU3FN0041513 LT AAAsf Affirmed AAAsf 2018-1 Class A2 AU3FN0041521 LT AAAsf Affirmed AAAsf 2018-1 Class B AU3FN0041539 LT AAsf Affirmed AAsf 2018-1 Class C AU3FN0041547 LT Asf Affirmed Asf 2018-1 Class D AU3FN0041554 LT BBBsf Affirmed BBBsf 2018-1 Class E AU3FN0041562 LT BBsf Affirmed BBsf 2019-1 Class A1 AU3FN0050035 LT AAAsf Affirmed AAAsf 2019-1 Class A2 AU3FN0050050 LT AAAsf Affirmed AAAsf 2019-1 Class B AU3FN0050068 LT AAsf Affirmed AAsf 2019-1 Class C AU3FN0050076 LT Asf Affirmed Asf 2019-1 Class D AU3FN0050084 LT BBBsf Affirmed BBBsf 2019-1 Class E AU3FN0050092 LT BBsf Affirmed BBsf Latitude New Zealand Credit Card Master Trust 2021-1 A NZLATD1006R4 LT AAAsf Affirmed AAAsf 2021-1 B NZLATD1007R2 LT AAsf Affirmed AAsf 2021-1 C NZLATD1008R0 LT Asf Affirmed Asf 2021-1 D NZLATD1009R8 LT BBBsf Affirmed BBBsf 2021-1 E NZLATD1010R6 LT BBsf Affirmed BBsf New Zealand Sales Finance and Credit Cards Trust A LT AAAsf Affirmed AAAsf B LT AAsf Affirmed AAsf C LT Asf Affirmed Asf D LT BBBsf Affirmed BBBsf E LT BBsf Affirmed BBsf KEY RATING DRIVERS Stable Performance and Collateral Characteristics: Historical performance has been stable since the last review, with steady charge-offs over the last year; gross charge-offs across the Australia trusts averaged 3.10%, and 3.00% for the New Zealand trusts. This was below Fitch's steady state of 5.25% and 4.25%, respectively. The monthly payment rate (MPR), a measure of how quickly consumers are paying off their credit-card debt, has averaged at 14.1% in Australia and 11.7% in New Zealand over the past year. Fitch maintains an MPR steady state at 12.5% for Australia and 9.75% for New Zealand. Yield has been steady across the transactions, averaging at 13.6% in Australia and 14.7% in New Zealand. Fitch maintains a gross yield steady state of 13.0% in both countries. Fitch expects card performance to be supported by recovering macroeconomic conditions in Australia and New Zealand. Fitch forecast Australia's GDP to expand by 4.2% in 2022, with an unemployment rate of 4.0%. GDP growth should normalise to 2.3% in 2023, with an unemployment rate of 4.3%. Fitch forecast New Zealand GDP growth of 3.1% in 2022 and 2.7% in 2023 and an unemployment rate of 4.0% and 4.3% respectively A summary of the steady states and rating stresses for the Australian and New Zealand trusts is shown below: Australia -- Steady States: -- Charge-offs: 5.25% -- MPR: 12.5% -- Gross yield: 13.00% -- Purchase rate: 100% New Zealand -- Steady States: -- Charge-offs: 4.25% -- MPR: 9.75% -- Gross yield: 13.00% -- Purchase rate: 100% -- Rating Stresses (Australia and New Zealand): -- Ratings: AAAsf / AAsf / Asf / BBBsf / BBsf -- Charge-offs (increase): 4.50x / 3.75x / 3.00x / 2.25x / 1.50x -- MPR (% decrease): 40.00% / 35.00% / 30.00% / 25.00% / 20.00% -- Gross yield (% decrease): 35.00% / 30.00% / 25.00% / 20.00% / 15.00% -- Purchase rate (% decrease): 90.00% / 85.00% / 75.00% / 65.00% / 55.00% Updated cash flow modelling was not performed for this review, in line with criteria. Originator and Servicer Risk Mitigated: Latitude is a publicly listed company with experience in managing large consumer receivable portfolios of over a decade in Australia and New Zealand. Latitude is not rated by Fitch and servicer risk is mitigated through back-up arrangements. Fitch undertook an operational review and found that the operations of the originator and servicer were comparable with other non-bank credit card providers. The key rating drivers listed in the applicable sector criteria, but not mentioned above, are not material to this rating action. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: -- A longer pandemic than Fitch expects that leads to material deterioration in macroeconomic fundamentals and consumers' financial positions in Australia and New Zealand beyond Fitch's baseline scenario. Available credit enhancement cannot fully compensate for credit losses and cash flow stresses associated with the assigned ratings, all else being equal. Downgrade Sensitivity: -- Fitch evaluated the sensitivity of the ratings to decreased yields, increased charge-offs and decreased MPRs over the life of the transactions. The model indicates that note ratings are sensitive to higher defaults and lower MPRs, with less sensitivity to lower yields. -- The most recent sensitivities are available at : Fitch Assigns Final Ratings to Upsized Latitude New Zealand Credit Card Master Trust - Series 2021-1 and Fitch Affirms Five Latitude Credit Card Trusts Factors that could, individually or collectively, lead to positive rating action/upgrade: -- An improvement in long-term asset performance, such as decreased charge-offs, increased MPRs or increased portfolio yields, driven by a sustainable positive change of underlying asset quality, would contribute to positive revisions of Fitch's asset assumptions. This could positively affect the notes' ratings. Increased credit enhancement ratios, which are able to fully compensate for credit losses and cash flow stresses commensurate with higher rating scenarios, all else being equal. -- The most recent sensitivities are available at : Fitch Assigns Final Ratings to Upsized Latitude New Zealand Credit Card Master Trust - Series 2021-1 and Fitch Affirms Five Latitude Credit Card Trusts. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Structured Finance transactions have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of seven notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of seven notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings are based on historical performance. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pools and the transactions. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information or reviewed origination files as part of its ongoing monitoring. Prior to the transactions closing, Fitch reviewed the results of a third-party assessment conducted on the asset portfolio information and concluded that there were no findings that affected the rating analysis. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. ========= C H I N A ========= BEIGENE LTD: Taps Auditor in Search for Way to Avoid Delisting -------------------------------------------------------------- Caixin reports that while regulators in Beijing and Washington debate how to settle a long-running audit standoff, some Chinese companies are blazing their own trails in search of a way to avoid getting kicked off American stock exchanges. According to Caixin, Chinese biotechnology company BeiGene Ltd. hired Boston-based accounting firm Ernst & Young LLP as the principal auditor of its financial statements to be filed with the U.S. Securities and Exchange Commission (SEC), replacing China-based Ernst & Young Hua Ming LLP. CHINA HONGQIAO: S&P Affirms 'BB-' LT ICR & Alters Outlook to Pos. ----------------------------------------------------------------- S&P Global Ratings, on April 7, 2022, revised its outlook on China-based primary aluminum producer China Hongqiao Group Ltd. to positive from stable. S&P also affirmed its 'BB-' long-term issuer credit rating on the company and its 'B+' long-term issue rating on the U.S. dollar-denominated senior unsecured notes that Hongqiao issues. S&P said, "The positive outlook reflects our view that Hongqiao's operating cash flow continues to be sufficient to cover its capex. Its Yunnan project should progress well, absent significant production disruptions. The company should sustain its ratio of funds from operations (FFO) to debt well above 45% over the next 12-24 months. "Robust industry momentum and increased production volumes should bolster Hongqiao's strong EBITDA and operating cash flow generation. We expect the company's EBITDA to ride on industry tailwinds to reach Chinese renminbi (RMB)40.0 billion-RMB41.0 billion in 2022, before moderating to RMB33.0 billion-RMB34.0 billion in 2023. This compares to RMB30.9 billion in 2021. Our base case assumes the aluminum prices will average US$3,000 a ton for the rest of 2022 and US$2,500 a ton for 2023, below the spot prices of about US$3,400 yet still at decade highs. The solid prices reflect our view on robust recovery in demand, smelter curtailments in China and Europe, and supply disruptions amid soaring energy prices and energy shortages. "We anticipate Hongqiao's total aluminum production will increase moderately to 6.5 million tons-6.7 million tons this year and next, from 6.3 million tons in 2021. This is due to production ramp-up at the new plant in Yunnan and resilient aluminum demand." Hongqiao should remain financially disciplined and continue to deleverage this year and next. Hongqiao's annual capital spending will increase to RMB8.0 billion-RMB10.0 billion in 2022-2023, mainly on the Yunnan project. This compares to RMB6.0 billion in 2021. The spending will be well covered by its operating cash flow of RMB21.0 billion–RMB27.0 billion a year over the period, supporting debt reduction. S&P views Hongqiao's debt-funded growth phase as over, given the company is already one of the largest primary aluminum producers globally and in light of the Chinese government's cap on national aluminum capacity. Hongqiao's adjusted debt could further drop to RMB20 billion-RMB21 billion by 2023. This follows a multiyear low of RMB24.5 billion by end-2021, representing a notable drop of 41% year-on-year. The company's unrestricted cash balance should stay high at more than RMB45.0 billion during the period, based on positive discretionary cash flow. Hongqiao managed its substantial debt maturities in 2021, supported by its ample cash balance as well as favorable industry conditions, which allowed strong operating cash flow. Healthy earnings and debt reduction will lead to Hongqiao's FFO-to-debt ratio to stay well above 45% this year and next. This compares to about 90% in 2021, 35% in 2020, and a low of 20% during the market trough of 2016. Hongqiao's capacity relocation to Yunnan poses execution risk. Hongqiao plans to relocate its aluminum capacity, which totals four million tons per annum (mtpa), to Yunnan from Shandong. The first one mtpa will likely reach full production capacity by 2023. The remaining three mtpa could commence operations in 2023-2024. Hongqiao's aluminum alloy capacity was 6.5 mtpa in 2021. The project, once fully operational, will move Hongqiao's primary aluminum production base to Yunnan and significantly lift the company's clean energy adoption. S&P sees potential project execution risks, considering its large scale and the company's first entrance into Yunnan where hydropower is highly seasonal, which may disrupt production. Without alternative power supplies in time, any significant hydropower shortages could hinder Hongqiao's production and operating cash flow. In May 2021, water shortages disrupted electricity supply in Yunnan. This forced about one-quarter of the aluminum plants in the province to temporarily shut. S&P said, "The positive outlook on Hongqiao reflects our view that robust aluminum prices and moderately increased production volume should generate strong operating cash flow in the next two years. This should more than cover the company's capex, resulting in positive discretionary cash flow. Its Yunnan project should progress well, absent significant production disruptions and Hongqiao's FFO-to-debt ratio should continue to stay well above 45% over the period. "We could raise the rating on Hongqiao if the company's FFO-to-debt ratio exceeds 45% and its discretionary cash flow remains positive over a sustained period after the smooth operation of its Yunnan project. "We may revise the rating outlook on Hongqiao to stable if the company's deleveraging trend reverses and its FFO-to-debt ratio trends toward 45% over a sustained period. This could happen if aluminum prices are lower than our expectation or operating costs and capex are well above our estimates. This could also happen if the production cost of the Yunnan project turns out to be much higher than we expect, or if the company's production output is much lower than we expect during the capacity relocation." KAISA GROUP: In Deal With State-Owned Builder and Bad-Debt Manager ------------------------------------------------------------------ Caixin Global reports that defaulted developer Kaisa Group Holdings Ltd. unveiled a strategic agreement with a state-controlled builder and one of China’s major bad-debt managers, becoming one of the few big private developers to avoid major liquidity issues. China Merchants Shekou Industrial Zone Holdings Co. and China Great Wall Asset Management Co. entered into a strategic cooperation agreement with Kaisa to develop real estate, tourism and other businesses in an area including Hong Kong and Macau, the developer said on April 5, Caixin relays. The strategic cooperation may have been coordinated and brokered by the government, a person close to the deal said. About Kaisa Group Kaisa Group Holdings Ltd engages in real estate development in China, including urban redevelopment projects in the GBA. As of June 30, 2021, the company's land bank comprised an aggregate gross floor area of 31.1 million square meters of saleable resources across over 50 cities in China. As recently reported in the Troubled Company Reporter-Asia Pacific, Fitch Ratings has withdrawn Kaisa Group Holdings Limited's Long-Term Foreign-Currency Issuer Default Rating (IDR) of 'RD' and senior unsecured rating of 'C' with a Recovery Rating of 'RR4'. Fitch is withdrawing the ratings as Kaisa has chosen to stop participating in the rating process. Therefore, Fitch will no longer have sufficient information to maintain the ratings. Accordingly, Fitch will no longer provide ratings or analytical coverage for Kaisa. REDSUN PROPERTIES: Moody's Lowers CFR to B3, Outlook Remains Neg. ----------------------------------------------------------------- Moody's Investors Service has downgraded Redsun Properties Group Limited's corporate family rating to B3 from B2 and the company's senior unsecured rating to Caa1 from B3. The outlook remains negative. "The downgrade reflects Redsun's heightened refinancing risks and weakened liquidity driven by its weak operating cash flow and sizable debt maturities over the next 12-18 months," says Cedric Lai, a Moody's Vice President and Senior Analyst. "The negative outlook reflects the uncertainties over the company's ability to address its refinancing needs amid a tight funding environment," adds Lai. RATINGS RATIONALE Moody's expects Redsun's contracted sales to decline over the next 6-12 months because of weak consumer sentiment and challenging operating conditions. This will reduce the company's operating cash flow and, in turn, its liquidity. Redsun's contracted sales fell 36% and 41% year on year in January and February 2022, respectively. In addition, Moody's expects Redsun's liquidity to weaken over the next 12 months as the company will use internal resources to repay maturing debt absent any new fundraising amid the tough funding environment. Specifically, Redsun will have USD260 million of offshore bonds coming due in April 2022, USD250 million in October 2022 and USD455 million in April 2023. Moody's expects the company to repay in full the maturing bond due in April 2022. The use of internal resources to repay the debt will exacerbate the company's liquidity pressure. However, Moody's believes the company will scale down land acquisitions and developments, as well as control expenses to preserve liquidity for debt servicing. Redsun's investment property portfolio will also provide an alternate source of liquidity, as the company could sell these properties to meet its debt obligations in case of need, but the execution of assets sale remains challenging under a difficult operating environment. Moody's notes that Redsun's auditor, Ernst & Young, indicated in its financial result announcement of 2021 the existence of material uncertainty in the company's ability to continue as a going concern. Moody's expects such an incident to weaken investors' confidence and the company's access to funding. Moody's forecasts Redsun's debt leverage, as measured by revenue/adjusted debt, will decline slightly to around 60% over the next 12-18 months from 63% in 2021, driven by its slower revenue recognition. Similarly, its interest-servicing ability, as measured by EBIT interest coverage, will weaken to 1.5x-1.6x from 1.9x over the same period, driven also by the expected declining margin. Redsun's B3 CFR reflects the company's long operating history in developing mass residential properties in Jiangsu province. However, the rating is constrained by the company's modest credit metrics, highly concentrated geographic coverage in Jiangsu province and significant exposure to its joint venture (JV) businesses, which increases its contingent liabilities and weakens its corporate transparency. The Caa1 senior unsecured debt rating is one notch lower than the company's CFR due to structural subordination risk. This risk reflects the fact that the majority of claims are at the operating subsidiaries and have priority over Redsun's senior unsecured claims in a bankruptcy scenario. In addition, the holding company lacks significant mitigating factors for structural subordination. As a result, the expected recovery rate for claims at the holding company will be lower. In terms of environmental, social and governance (ESG) considerations, Redsun's CFR considers the company's concentrated ownership by its key shareholder, Zeng Huansha, who held a 72% direct and indirect stake as of the end 2021. Moody's has also considered the presence of three independent nonexecutive directors on Redsun's seven-member board, and the presence of other internal governance structures and standards as required by the Corporate Governance Code for companies listed on the Hong Kong Stock Exchange. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade of Redsun's ratings is unlikely over the next 12 months, given the negative outlook. However, Moody's could change the outlook to stable if Redsun improves its liquidity and access to funding and strengthens sales, profitability and credit metrics through the next 12-18 months. On the other hand, Moody's could downgrade Redsun's ratings if its liquidity deteriorates further. The principal methodology used in these ratings was Homebuilding And Property Development Industry published in January 2018. Redsun Properties Group Limited, which was founded in 1996, listed on the Hong Kong Stock Exchange in July 2018. Its headquarters are in Shanghai and Nanjing. The company engages in real estate development, commercial properties and hotel operations in China. As of the end of 2021, its saleable resources totaled 18.8 million square meters in gross floor area spread across over 60 cities in China. TIMES CHINA: Moody's Lowers CFR to B2, Outlook Remains Negative --------------------------------------------------------------- Moody's Investors Service has downgraded Times China Holdings Limited's corporate family rating to B2 from B1, and the company's senior unsecured rating to B3 from B2. The outlook on the ratings remains negative. "The downgrade on the ratings reflects our expectation that Times China's liquidity will weaken because of its declining operating cash flow, driven by a likely fall in contracted sales over the next 12-18 months," says Kelly Chen, a Moody's Assistant Vice President and Analyst. "The negative outlook reflects uncertainties over the company's ability to raise new funding from public market to support its business plan, restore its liquidity and address its refinancing needs over the next 12-18 months," adds Chen. RATINGS RATIONALE Moody's forecasts Times China's liquidity will weaken in view of the company's declining contracted sales and constrained access to debt capital markets. Specifically, Moody's expects Times China's contracted sales will fall by 35%-40% in 2022 and continue to decline in 2023, driven by its diminished saleable resources and weak homebuyer confidence. The drop in contracted sales will reduce the company's operating cash flow and, in turn, its liquidity. Meanwhile, Times China relies heavily on onshore and offshore bond markets for funding, which together accounted for 58% of its total debt as of the end of 2021. In particular, the company has USD342 million of offshore bonds maturing in April 2022 and USD300 million maturing in March 2023. Given the volatile funding conditions, it is highly uncertain that the company will be able to issue new bonds to refinance these maturing debts. Times China will repay a material portion of its maturing public debt using its internal cash sources if the refinancing channels keep closed, which will reduce its funding headroom to support its business operations. At the same time, Moody's believes the company will scale down land acquisitions and developments, as well as control expenses to preserve liquidity for debt servicing. Times China's unrestricted cash declined to RMB14.7 billion as of the end of 2021 from RMB22.2 billion as of the end of June 2021, driven by debt repayment, weakened operating performance and ongoing spending on urban redevelopment projects (URPs). In addition, Moody's believes that part of such cash is kept at the project level and cannot be mobilized immediately to service the company's debt when needed. Moody's expects Times China to maintain its access to onshore bank loans to support its operations. The company has secured RMB1.55 billion of new financing sources from banks and financial institutions in the first three months of 2022. Moody's notes that Times China's auditor, Ernst & Young, indicated in its financial result announcement of 2021 the existence of material uncertainty in the company's ability to continue as a going concern. Moody's expects such an incident to weaken investors' confidence and the company's access to funding. Moody's forecasts Times China's interest coverage, measured by EBIT/interest coverage, will decrease to 2.5x-3.0x over the next 12-18 months from 3.2x for 2021. This expectation reflects Times China's slower revenue recognition and declining profit margins despite lower interest expenses because of a likely decrease in debt. Times China's B2 CFR continues to reflect the company's leading market position in Guangdong province and its good property development track record. However, the company's geographic concentration in Guangdong province limits its operational flexibility and exposes it to regional economic and regulatory risks. Its increased exposure to joint venture (JV) businesses also lowers corporate transparency over its credit metrics. Times China's B3 senior unsecured rating is one notch lower than its CFR, reflecting the risk of structural subordination. Most of Times China's claims are at its operating subsidiaries and have priority over claims at the holding company in a bankruptcy scenario. In addition, the holding company lacks significant mitigating factors for structural subordination. As a result, the likely recovery rate for claims at the holding company will be lower. As for environmental, social and governance (ESG) risks, Moody's has considered Times China's (1) increased JV exposure, which reduces its corporate transparency over its credit metrics; (2)Times China's concentrated ownership by its key shareholders, Shum Chiu Hung and his wife, who jointly held a 61.64% stake as of the end of June 2021; (3) adherence to the Listing Rules of the Hong Kong Stock Exchange and the Securities and Futures Ordinance in Hong Kong SAR, China on related-party transactions, and (4) the presence of three independent nonexecutive directors on the company's nine-member board, which provides management oversight. The independent nonexecutive directors also chair the company's audit and remuneration committees. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade of Times China ratings is unlikely over the next 12 months, given the negative outlook. However, Moody's could change the outlook to stable if the company improves its liquidity and access to funding; and strengthens its contracted sales over the next 12-18 months. On the other hand, Moody's could downgrade Times China's ratings if its access to funding and liquidity deteriorates further. The principal methodology used in these ratings was Homebuilding And Property Development Industry published in January 2018. Based in Guangdong province, Times China Holdings Limited is a property developer that focuses on mass-market housing. As of end of 2021, the company's land bank totaled around 19.9 million square meters across 17 cities in Guangdong and in major provincial cities such as Changsha, Wuhan, Chengdu and Hangzhou. ========= I N D I A ========= A.R.T FABRICATION: CARE Lowers Rating on INR7.17cr Loan to B ------------------------------------------------------------ CARE Ratings has revised the ratings on certain bank facilities of A.R.T Fabrication Industries Private Limited (ARPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term 7.17 CARE B; Stable Revised from Bank Facilities CARE B+; Stable Detailed Rationale & Key Rating Drivers The revision in rating assigned to the bank facilities of ARPL factors in the small scale of operations coupled with reporting higher operating losses in FY21 (refers to the period from April 1 to March 31). The rating also factored in weak capital structure as well as debt coverage indicators, working capital intensive nature of business along with poor liquidity position of the company. The rating, further, continues to remain constrained by volatility in the prices of raw material and highly competitive nature of the industry. The rating, however, continues to draw comfort from the experience of management and reputed though concentrated customer base. Rating Sensitivities Positive Factors * Improvement in scale of operations to around INR60 crore and above over the medium term on sustained basis. * Improvement in the operating cycle of the company for less than 80 days. Negative Factors * Cash flow mismatch from operation putting pressure on liquidity led to inability to meet its repayment obligation in timely Manner Detailed description of the key rating drivers Key Rating Weaknesses * Small scale of operation coupled with reporting losses: ARPL's scale of operations continues to remain small as evident from total operating income (TOI) of INR24.76 crore during FY21 as against (TOI) of INR23.35 crore during FY20. Moreover, ARPL's scale of operations remained fluctuating for the period FY19-FY21. The small scale of operations limits the company's financial flexibility in times of stress and deprives it of scale benefits. Further, during current year till March 25, 2022 ARPL has booked turnover of INR39 crore. The company has incurred operational losses of INR3.63 crore in FY21 against INR2.97 crore in FY20 owing to increase in raw material cost. Further, the company has written off obsolete inventory to the tune of INR5.50 crore in past two years' financials. As a consequence of the same ARPL has reported net losses as well as cash losses for past two years ended FY21. * Weak Capital structure as well as debt coverage indicators: On account of erosion of networth of company due to losses incurred by the company for past two years ended FY21, capital structure of the company remained weak marked by negative overall gearing ratio. Further, the debt coverage indicators of the company deteriorated and remained stressed during FY21 on account of reporting operating and cash losses during the year. * Working capital intensive nature of operations: The operations of the company are working capital intensive in nature as reflected by higher average utilization of its sanctioned working capital limits. The company maintains inventory mainly in the form of raw material and work in progress for smooth running of its production process resulting in an average inventory holding period of 172 days in FY21. Due to the longstanding relationship with its suppliers the company procures the raw material normally with the credit period of around 3-4 months resulting in an average creditor period of 103 days in FY21. Further, the company offers reasonable credit period of around 30-60 days to its customers as majority of them are large size players who possess high bargaining power. Entailing, all these lead to an operating cycle of 117 days for FY21. The average utilization of working capital remained almost fully utilized for the last 12 months ended February 2022. * Volatility in the prices of raw material: The raw material prices of iron and steel are highly volatile in nature and depend on the fortunes of steel industry. Since, the raw material cost is the major cost driver and any upward movement of finished goods price with no decline in raw material price is likely to result in adverse performance. Though, the company tries to pass on the price volatility to the end users, any adverse fluctuations in the prices may put pressure on the profitability of the company. The risk is more evident now that the market has considerable volatility and could leave the company carrying costly inventory in case of sudden appreciation. * Highly competitive nature of the industry: ARPL operates in a highly competitive nature of industry where the presence of large number of players in the organized sector. The industry is characterized by low entry barriers due to low technological inputs and easy availability of standardized machinery for production. This further leads to high competition among the various players and low bargaining power with the suppliers. Key Rating Strengths * Experienced management: The company is managed by Mr. Jatinder Singh Grover and Mr. Harinder Singh Grover. Mr. Jatinder Singh Grover both are graduates by qualification and have an experience of more than two and half decades in the manufacturing industry through their association with ARPL. Both the directors collectively look after the overall operations of the company. Moreover, ARPL has a well-qualified and experienced team of projects managers, project engineers and dedicated purchase planning and execution department with good experience. * Reputed though concentrated customer base: The company sells its products to reputed customers like Escorts Limited, JCB India Limited, Action Construction Equipment Limited. However, customer concentration risk was high as sale to top 3 reputed clientele contributing around 86% of the total sales in FY21 as against 80% contribution in total sales in FY20. Liquidity: Poor The liquidity position of the company remained poor owing to elongated inventory holding period coupled with almost full utilization of its working capital limits during the past 12 month's period ending February 2022. Moreover, the company has incurred cash losses to the tune of INR4.17 crore in FY21. The free cash and bank balances of the company stood low at INR0.19 crore as on March 31, 2021, while its cash flow from operating activity was negative at INR5.35 crore in FY21 against negative cash flow of INR0.84 crore in FY20. Haryana based A.R.T Fabrication Industries Private Limited (ARPL) was incorporated in August, 1995 as a private limited company and is currently being managed by Mr. Jatinder Singh Grover and Mr. Harinder Singh Grover. The company is engaged in the manufacturing of crane parts such as bumper of cranes, compactor chasis, counters weights, frames, etc. other associated sheet metal components and electricity panels at its manufacturing facility located in Faridabad, Haryana. ACTION ISPAT: Insolvency Resolution Process Case Summary -------------------------------------------------------- Debtor: Action Ispat and Power Private Limited Plot No. 44A, Khasra No. 589/333 Shahzada Bagh, Old Rohtak Road New Delhi 110035 Insolvency Commencement Date: April 4, 2022 Court: National Company Law Tribunal, New Delhi Bench Estimated date of closure of insolvency resolution process: September 19, 2022 Insolvency professional: Maya Gupta Interim Resolution Professional: Maya Gupta 3685/7, Narang Colony Tri Nagar, Delhi 110035 E-mail: fcsmayagupta@gmail.com - and - Maya Gupta & Associates 701, Vikrant Tower Rajendra Place New Delhi 110008 E-mail: cirp.actionispat@gmail.com Last date for submission of claims: April 18, 2022 AFFORDABLE ROBOTIC: CRISIL Hikes Rating on INR14cr Loan to B+ ------------------------------------------------------------- CRISIL Ratings has downgraded its ratings on the bank facilities of Affordable Robotic and Automation Ltd (ARAPL) to 'CRISIL D/CRISIL D' from 'CRISIL BB-/Negative/CRISIL A4+' and simultaneously upgraded the ratings to 'CRISIL B+/Stable/CRISIL A4.' Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 0.5 CRISIL A4 (Revised from 'CRISIL A4+' to 'CRISIL D' and simultaneously upgraded to 'CRISIL A4') Bank Guarantee 4.5 CRISIL A4 (Revised from 'CRISIL A4+' to 'CRISIL D' and simultaneously upgraded to 'CRISIL A4') Cash Credit 14 CRISIL B+/Stable (Revised from 'CRISIL BB-/Negative' to 'CRISIL D' and simultaneously upgraded to 'CRISIL B+/Stable') Proposed Bank 1 CRISIL B+/Stable (Revised Guarantee from 'CRISIL BB-/Negative' to 'CRISIL D' and simultaneously upgraded to 'CRISIL B+/Stable') Proposed Cash 5 CRISIL B+/Stable (Revised Credit Limit from 'CRISIL BB-/Negative' to 'CRISIL D' and simultaneously upgraded to 'CRISIL B+/Stable') The downgrade to 'CRISIL D/CRISIL D' reflects past delays in meeting monthly interest obligation on loans availed of from PNB Housing Finance Ltd (PNB), leading to the account being classified as substandard by the lender which came to CRISIL's notice from the auditor's qualification in annual report of 2020-21. ARAPL availed of long-term loans under a subvention scheme from PNB to buy properties. As per the tripartite agreement with the lender and builder, the builder was responsible for paying the interest till the possession of the property or fixed subvention period. Nonetheless, as per agreement, in case the builder fails to make the payment, the company was liable to honor all the interest obligation and hence there is recourse to company in the event of non-payment by the builder. The builder did not pay the monthly obligation in consecutive months and so the dues were cleared by company by June 2021 with a delay. Thereafter, ARAPL has been meeting the interest obligation on time. The rating upgrade to 'CRISIL B+/Stable/CRISIL A4' factors in the sufficient track record of timely debt repayment. Liquidity remains stretched, as reflected in highly utilized working capital limit because of large working capital requirement. The ratings reflect the susceptibility of ARAPL to cyclicality in the automotive industry and working capital-intensive operations. These weaknesses are partially offset by moderate capital structure and extensive experience of the promoter. Key rating drivers & detailed description Weaknesses: * Susceptibility to cyclicality in the automotive industry: Since the company primarily supplies robotics/automated welding lines and precision components to the automobile players, business risk profile will remain vulnerable to cyclicality in that industry. For instance, slowdown in the end user because of the pandemic had adversely impacted operating performance in fiscal 2021. * Working capital-intensive operations: Gross current assets were over 500 days as of March 31, 2021, because of significantly stretched receivables and sizeable inventory. Despite improvement in the current fiscal, operations will remain working capital intensive over the medium term; its management will remain critical. Strengths: * Extensive experience of the promoter: Benefits from the promoter experience of over a decade in the industrial automation business and established relationships with key customers should continue to support the business. * Moderate capital structure: Networth was healthy at INR45.49 crore and gearing strong at 0.58 time, as of March 31, 2021. The company had incurred PAT (profit after tax) loss in fiscal 2021 due to decline in revenue amid Covid-led disruptions. This led to subdued debt protection metrics, as reflected in interest coverage ratio of 0.35 time in fiscal 2021. With better revenue following revival in the overall economic scenario, the debt protection metrics are estimated to improve in fiscal 2022. Liquidity: Stretched Bank limit utilization remained high at 95.5% on average for the 7 months through March 2022 due to working capital-intensive operations. Net cash accrual is expected to be INR3-3.5 crore per annum against debt obligation of around INR1 crore per annum, over the medium term. Effective working capital management, mainly receivables realization, remains critical to cushion liquidity on a steady basis. Outlook: Stable ARAPL will continue to benefit from the extensive experience of its promoter. Rating sensitivity factors Upward factors * Sustained revenue growth and improved and stable operating margin leading to cash accrual above INR4.5 crore on a consistent basis * Efficient working capital management and improvement in liquidity Downward factors * Significant drop in revenue and operating margin leading to cash accrual of less than INR2 crore * Further stretch in working capital cycle leading to deterioration in liquidity Incorporated in 2009, Pune-based ARAPL is promoted by Mr Milind Padole. It primarily provides automation solutions for welding lines using robotics and related designing services. It also offers material handling automation services and has forayed into automated car parking systems. AKSHAR IMPEX: CRISIL Withdraws B+ Rating on INR53.94cr Loan ----------------------------------------------------------- CRISIL Ratings has withdrawn its ratings on the bank facilities of Akshar Impex Private Limited (Akshar) on the request of the company and receipt of a no objection certificate from its bank. The rating action is in line with CRISIL Ratings' policy on withdrawal of its ratings on bank loans. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Export Packing 35.92 CRISIL B+/Stable/Issuer Not Credit Cooperating (Withdrawn) Post Shipment 53.94 CRISIL B+/Stable/Issuer Not Credit Cooperating (Withdrawn) CRISIL Ratings has been consistently following up with Akshar for obtaining information through letters and emails dated October 24, 2020 and April 20, 2021, among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of Akshar. This restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on Akshar is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the rating on bank facilities of Akshar continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. Set up by Mr. Chandresh Gandhi and Mr. Yogesh Gandhi as a partnership firm in 2006 and was reconstituted as a private limited company in 2010, Akshar cuts and polishes diamonds (of size ranging from 25 cents to 3 carats) at its facility in Surat. Head office is in Mumbai. ANAND DIVINE: Insolvency Resolution Process Case Summary -------------------------------------------------------- Debtor: Anand Divine Developers Private Limited 711/92, Deepali Nehru Place New Delhi 110019 Insolvency Commencement Date: April 5, 2022 Court: National Company Law Tribunal, New Delhi Bench Estimated date of closure of insolvency resolution process: September 21, 2022 (180 days from commencement) Insolvency professional: Mr. Harish Taneja Interim Resolution Professional: Mr. Harish Taneja 236-L, Model Town Sonipat, Haryana 131001 E-mail: harishtaneja78@gmail.com cirp.ananddivine@gmail.com Classes of creditors: Real Estate Buyers Insolvency Professionals Representative of Creditors in a class: Gagan Gulati MP Jain Amit Talwar Last date for submission of claims: April 19, 2022 BRICS COMMODITIES: Voluntary Liquidation Process Case Summary ------------------------------------------------------------- Debtor: Brics Commodities Private Limited B/306, Shankar Dhan Plaza J N Road, Mulund (West) Mumbai 400080 Liquidation Commencement Date: March 31, 2022 Court: National Company Law Tribunal, Mumbai Bench Insolvency professional: Bharat Ramakant Updahyay Interim Resolution Professional: Bharat Ramakant Updahyay 507, 5th floor, C2 Wing Skyline Wealth Space Skyline Oasis Complex Premier Road Near Vidyavihar Station Ghatkopar-West, Mumbai 400086 Tel: 9833284483 E-mail: brupadhyay@hotmail.com brupadhyay.irp@gmail.com Last date for submission of claims: April 30, 2022 CMJ BREWERIES: CARE Reaffirms D Rating on INR176.93cr LT Loan ------------------------------------------------------------- CARE Ratings has reaffirmed ratings on certain bank facilities of CMJ Breweries Pvt Ltd, as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 176.93 CARE D; Reaffirmed Facilities Detailed Rationale & Key Rating Drivers The ratings assigned to bank facilities of CMJ continue to take into account ongoing delays and defaults in debt servicing, weak profitability with cash losses, stressed capital structure with negative networth and changes in government regulations impacting the spirit industry. The ratings also factor in modest track record of promoters and company's association with leading brands. Rating Sensitivities Positive Factors * Equity infusion leading to shoring up of networth and easing of liquidity. * Reporting positive profits on a sustainable basis * No delays and defaults in servicing debt. Detailed description of the key rating drivers Key Rating Weaknesses * Ongoing delays in debt servicing: In F21, CMJ has undertaken a One Time Settlement (OTS) for the outstanding dues with Punjab National Bank, Indian Bank, Allahabad Bank, State Bank of India and IFCI Ltd. However, the facilities of Canara Bank and Meghalaya Industrial Development Corporation (MIDC) have been restructured. However currently, the delays continue in servicing of term debt as per the interaction with few of the lenders. * Weak profitability marked by cash losses and stressed capital structure with negative networth: TOI has increased from 261.21 cr in FY20 to INR291.72 cr in FY21, however despite the increase the recovery in revenue the company continue to report cash losses. Further during fiscal 2021 the company report damaged and unsaleable goods of INR21.41 crores which was booked as losses for the said fiscal resulting in further stress on the overall profitability. The company has reported negative PBT at INR-41.95 cr in FY21 vis-a-vis -INR36.69 cr in FY20. Cash loss stood at INR12.90 cr in FY21 as against INR6 cr in FY20.The overall gearing ratio is negative as of March 31, 2021, on account of negative net worth of the company. * Changes in government regulations impacting the spirit industry: In the past few years, particularly since 2016, the industry faced a string of issues ranging from alcohol ban, demonetization, highway ban and exclusion from GST. These factors had a telling impact on alcohol production. Key Rating Strengths * Modest track record of operations: Mr. Ronak Jain S/o Mr. Rohit Jain, is a Commerce Graduate with MBA degree from Monash University of Australia. He is Director of the company. After completing his studies, he is actively involved in the family business of CMJ Group. He has an experience of more than a decade in this company. * Association with leading brands: The company is manufacturing beer under bottling agreement/Job work and own brands such as Asia 72, Meakins 1000, Heman 9000, Kingfisher Strong & lager, Godfather, Magpie, Savage, Red Indian, Shimla, etc. The company has bottling agreement in the Indian-made foreign liquor (IMFL) unit with “United Spirits Limited”, Allied Blenders & Distillers Private limited. In the Extra Neutral Alcohol (ENA) Unit, the company has tie-up with United Spirits Limited, Allied Blenders, Distillers Private limited & other local bottling units in north eastern states. Liquidity: Poor Liquidity is marked by negative gross cash accruals as on March 31, 2021. With a negative overall gearing as on March 31, 2021, the issuer does not have sufficient headroom, to raise additional debt for its future capex. CMJ Breweries Pvt Ltd, incorporated in November 2007, is promoted by the Meghalaya-based Jain family. For the Brewery segment -The annual installed capacity was increased from 2,00,000 HLPA in 2013 and to 700,000 HLPA in 2020. The distillery commenced operations in October 2014. The company has set up a 100 KLPD state of art grain-based Extra Neutral Alcohol (ENA) Plant at Byrnihat, Meghalaya. The grain-based ENA caters to the Eastern and North Eastern region where the demand is high. A Captive power plant of 4.20 MW has been set up alongside the distillery. CORNING FINOFLEX: Voluntary Liquidation Process Case Summary ------------------------------------------------------------ Debtor: Corning Finoflex Optical Fibre Private Limited D-237, MIDC, Phase-II Chakan Industrial Area Varale, Tal. Khed Chakan Pune MH 410501 IN Liquidation Commencement Date: March 30, 2022 Court: National Company Law Tribunal, Ludhiana Bench Insolvency professional: Rajeev Bhambri Interim Resolution Professional: Rajeev Bhambri SCO# 9, 2nd Floor, Jandu Tower Miller Ganj, GT Road Ludhiana 141003 E-mail: rajeev.bhambri@gmail.com Mobile: 9915710010 Last date for submission of claims: April 29, 2022 D S TOLL: CARE Lowers Rating on INR171.67cr LT Loan to D -------------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of D S Toll Road Limited (DS), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 171.67 CARE D; ISSUER NOT COOPERATING Facilities Revised from CARE B; Stable Detailed Rationale & Key Rating Drivers The revision in the rating assigned to the bank facilities of DS is due to on-going delay in servicing of interest payment. Rating Sensitivities Positive Factors - Factors that could lead to positive rating action/upgrade: The entity's ability to establish a track record of timely servicing of debt obligations Detailed description of the key rating drivers Key Rating Weaknesses * On-doing delays in debt servicing: There are on-going delays in debt servicing in the payment of the interest principal repayment of the term loan facility and dropline overdraft limit since the month of February 2022 due to stress on liquidity. Liquidity: Poor Liquidity is poor marked by delays in debt servicing (interest obligation of term loan). DS Toll Road Limited (DSTL) is a Special Purpose Vehicle (SPV) promoted by Reliance Infrastructure Limited for construction of the toll road covering stretch of 53 km from Dindigul to Samyanallore section on National Highway (NH-7) in state of Tamil Nadu on Build-Operate-Transfer (BOT) basis. The project involved widening of two lanes into four laning dual carriageway facility. The company entered into the Concession Agreement (CA) on January 30, 2006 with National Highway Authority of India (NHAI, rated CARE AAA; Stable) for a period of 20 years ending July 29, 2026. The total cost of the project was INR428 crore which was funded by sponsor equity of INR65 crore; grant paid by NHAI INR31 crore and balance debt. The road became operational from September 29, 2009. DAULAT RAM: CARE Reaffirms D Rating on INR76.50cr LT/ST Loan ------------------------------------------------------------ CARE Ratings has reaffirmed ratings on certain bank facilities of Daulat Ram Engineering Services Private Limited (DRESPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 14.72 CARE D; Reaffirmed Facilities Long Term/ Short Term Bank Facilities 76.50 CARE D/CARE D Reaffirmed Detailed Rationale & Key Rating Drivers The ratings assigned to the bank facilities of DRESPL continue to take into consideration the on-going delays in debt servicing due to liquidity stress. Rating Sensitivities Positive factors: * Delay free track record of 90 days in servicing of debt obligations Detailed description of the key rating drivers Key Rating Weaknesses * Ongoing delays in debt servicing on back of acute liquidity stress: The ratings assigned to the bank facilities of Daulat Ram Engineering Services Private Limited (DRESPL) continue to take into consideration the on-going delays in debt servicing due to liquidity stress. This is due to considerable time lag in receipt of dues from its customers which includes various divisions of Indian Railways. Liquidity analysis: Poor Liquidity profile of DRSPL remains poor on account of elongated operating cycle of 431 days in FY21 which was due to elongated inventory days and collection period. Net cash flow from operating activities remained low at INR0.29 crore during FY21 as against INR4.86 crore during FY20. The decline was due to blockage of funds into receivables and inventories. Raisen, Madhya Pradesh based Daulat Ram Engineering Services Pvt. Ltd. (DRESPL) (CIN: U74210MP1997PTC011601) was incorporated in 1997 by Mr. Chandra Prakash Sharma. Initially, the company was engaged in repair, reconditioning and rehabilitation of dynamic braking resistors for Indian Railways. Later, DRPL commenced manufacturing of motors, traction motors and alternators, auxiliary generator, traction motors, oil cooling blower and many other engineering products which find its application in railway locomotives. It supplies its products to various diesel locomotive manufacturing units of Indian Railways including DMW – Patiala, DLW – Varanasi, ICF – Chennai and National Railway Equipment Company (NREC) for onward supply to Indian Railways. DRPL also commenced manufacturing and installation of escalators at various railway stations as well as manufacturing of vacuum toilet systems for rail coaches. DCW LIMITED: Insolvency Resolution Process Case Summary ------------------------------------------------------- Debtor: D C W Limited Registered office: Dhrangadhra 363315 Gujarat Head office: "Nirmai" 3rd Floor Nariman Point Mumbai 400021 Insolvency Commencement Date: April 4, 2022 Court: National Company Law Tribunal, Kalyan Bench Estimated date of closure of insolvency resolution process: September 27, 2022 (180 days from commencement) Insolvency professional: Rajesh Kumar Mittal Interim Resolution Professional: Rajesh Kumar Mittal 204/A, Navjyoti Darshan CHS Near Purnima Talkies Murbad Road Kalyan (W) 421301 Maharashtra E-mail: csrajeshmittal@gmail.com rpdcwltd@gmail.com Last date for submission of claims: April 18, 2022 DR. GANESAN'S HITECH: Voluntary Liquidation Process Case Summary ---------------------------------------------------------------- Debtor: Dr. Ganesan's Hitech Diagnostic Centre Private Limtied #1, Millers Road Kilpauk, Chennai Tamil Nadu 600010 India Liquidation Commencement Date: April 1, 2022 Court: National Company Law Tribunal, Mumbai Bench Insolvency professional: Mr. Dilipkumar Natvarlal Jagad Interim Resolution Professional: Mr. Dilipkumar Natvarlal Jagad 803/804, Ashok Heights Opp Sarawati Apartment Nikalas Wadi Road Near Bhuta School Old Nagar X Road Gundavali, Andheri East Mumbai City, Maharashtra 400069 E-mail: dilipjagad@hotmail.com Mobile: +91-9821142587 Last date for submission of claims: May 1, 2022 EAGLE CORP: Liquidation Process Case Summary -------------------------------------------- Debtor: Eagle Corporation Private Limited Shop No. G-01, "Onyx-2" Paldi, Ahmedabad GJ 380007 IN Liquidation Commencement Date: March 30, 2022 Court: National Company Law Tribunal, Ahmedabad Bench Date of closure of insolvency resolution process: March 29, 2022 Insolvency professional: CA Dhaval Jitendrakumar Mistry Interim Resolution Professional: CA Dhaval Jitendrakumar Mistry 9 B, Vardan Tower Near Lakhudi Circle Navarangpura Ahmedabad 380014 E-mail: cadhavalmistry@yahoo.com rp.eaglecorp@gmail.com Last date for submission of claims: April 29, 2022 EKDANT BUILDTECH: Liquidation Process Case Summary -------------------------------------------------- Debtor: Ekdant Buildtech Private Limited B-1/46, Lane No. 3 New Ashok Nagar Delhi DL 110096 IN Liquidation Commencement Date: April 4, 2022 Court: National Company Law Tribunal, New Delhi Bench-IV Date of closure of insolvency resolution process: June 11, 2020 Insolvency professional: Mr. Chetan Gupta Interim Resolution Professional: Mr. Chetan Gupta 46 Raj Nagar Pitampura, Delhi 110034 E-mail: chetan.gupta@ apacandassociates.com - and - 604-605, PP City Centre Road No. 44, Pitampura Delhi 110034 Last date for submission of claims: April 30, 2022 EMAAR LEAD: CRISIL Assigns B Rating to INR4cr Term Loan ------------------------------------------------------- CRISIL Ratings has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the bank facilities of Emaar Lead Company Private Limited. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Secured Overdraft Facility 2 CRISIL A4 (Assigned) Working Capital Term Loan 4 CRISIL B/Stable (Assigned) The ratings reflect Emmar's susceptibility of operating margins to fluctuations in raw material prices, modest scale of operation and regulatory risk pertaining to duty structure and compliance with environmental norms. These weaknesses are partially offset by its extensive industry experience of the promoters. Key Rating Drivers & Detailed Description Weakness: * Modest scale of operation: Emmar's business profile is constrained by its scale of operations in the intensely competitive lead industry. Emmar's scale of operations will continue to limit its operating flexibility. * Susceptibility of operating margins to fluctuations in raw material prices: Owing to fluctuations in raw material prices, the operating profitability has remained low over the years. * Regulatory risk pertaining to duty structure and compliance with environmental norms: Lead is hazardous in nature and can cause serious damage to the environment. Ministry of Environment and Forests (MoEF) has framed Batteries (Management and Handling) Rules, 2001. These rules specify that only those who possess environmentally sound management systems and are registered with the MoEF / Central Pollution Control Board (CPCB) are allowed to carry out battery recycling. Strengths: * Established relationship with customers: The company has an established relationship with its clients which lead to regular demand for its products and repeat orders. Liquidity: Poor Bank limit utilization is moderate at around 70 percent for the past twelve months ended December 2021. However, cash accruals are estimated to be just adequate to meet the repayment obligations. Outlook Stable CRISIL Ratings believe Emmar will continue to benefit from the extensive experience of its promoter, and established relationships with clients. Rating Sensitivity factors Upward factor * Net cash accruals to repayment of more than 1.25 times * Large increase in scale of operations Downward factor * Net cash accruals to repayment of less than 1.1 times * Stretch in working capital cycle leading to weak liquidity Incorporated in 2010, Emaar Lead Company Private Limited (Emaar) is engaged in the business of manufacturing of pure lead products. The company is promoted by Mr. M. Senthikumar and Mr. T.Palanikumar, and is based out of Tamil Nadu. ENTERPRISES BHOPAL: CARE Reaffirms B+ Rating on LT Bank Debts ------------------------------------------------------------- CARE Ratings has reaffirmed ratings on certain bank facilities of Shree Enterprises (Bhopal) (SEB), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank Facilities - Reaffirmed at CARE B+; Stable Detailed Rationale & Key Rating Drivers CARE Ratings Ltd. has reaffirmed and withdrawn the outstanding ratings of 'CARE B+; Stable' assigned to the bank facilities of SEB with immediate effect. The above action is taken at the request of SEB and 'No Objection Certificate' received from the bank that has extended the facilities rated by CARE Ratings Ltd. Detailed description of the key rating drivers Key Rating Weaknesses * Modest scale of operations with thin profitability: During FY21 (provisional), the total operating income (TOI) remained at INR5.56 crore as against INR16.04 crore during FY20. (INR15.27 crore in FY19). PBILDT margin increased during FY20 by 156 bps from 8.88% in FY19 to 10.44% due to decrease in other direct expenses and selling expenses during the year. Further, owing to higher depreciation and interest expenses incurred during the year, PAT margin remained thin at 0.08% in FY20 in line with 0.08% in FY19. SEB reported PAT of INR0.02 crore in FY21 (Provisional). * Leveraged solvency position: The capital structure of SEB remained leveraged with an overall gearing of 1.76 times as of March 31, 2021 as against 3.50 times as of March 31, 2020 (3.58 times as of March 31, 2019). Debt service coverage indicators remained modest with TDGCA of 7.49 times as of March 31, 2020 which improved from 9.65 times as of March 31, 2019 due to marginal increase in GCA as well as marginal reduction in total debt due to gradual repayment of its term debt along with repayment of unsecured loan during the year. Furthermore, interest coverage stood modest at 2.37 times in FY20 as against 2.95 times in FY19 owing to increase in interest expense due to higher utilization of working capital borrowing during the year. * Susceptibility of profit margins to volatility in raw material prices along with presence in a highly competitive and fragmented nature of industry: Primary raw material required for manufacturing high-density polyethylene (HDPE) pipes are derived from petroleum. The prices of petroleum (or crude oil) are highly volatile in nature and hence any adverse change in its price imparts a significant impact on the operating profitability for the firm. Further, the pipes & fittings industry is highly fragmented with a large number of small to medium scale unorganized players. High competition in the operating spectrum and small scale of operations of the firm limits the scope for improvement in margins. The products of SEB are used in agriculture sector for irrigation purpose and hence, focus of govt. on growth of irrigation infrastructure will remain crucial for growth of this firm. * Constitution as partnership concern: SEB's constitution as a partnership firm restricts its overall financial flexibility. There is also the inherent risk of withdrawal of capital and dissolution of the firm in case of death/insolvency of partner. Any significant withdrawals from the capital account will affect its capital structure. Key rating strengths * Experienced partners: Mr. Deepak Kumar Sharma, partner, graduate by qualification, has more than a decade of experience and looks after the overall affairs of the firm. Further, he is supported by other partner, Mr. Samarth Dixit, Bachelor in Civil Engineering by qualification, who has 5 years of experience in the industry. The partners are supported by a team of qualified employees having long standing experience in their respective fields in smooth functioning of the firm. Bhopal-Madhya Pradesh-based SEB was formed in 2013 as a partnership concern by Mr. Deepak Kumar Sharma and Mr. Samrath Dixtit sharing profit and loss in the ratio of 50:50. Previously, Mr. Deepak Kumar Sharma was carrying a proprietorship concern under the same name; however in 2013 the constitution of the firm was changed to partnership by admission of Mr. Samrath Dixtit as a partner in the firm. Earlier, the firm was registered dealer of Nayara Energy Limited (formerly known as Essar Oil Limited) for trading in Bitumen petroleum products. However, since FY19 it has commenced manufacturing of HDPE pipes with an installed capacity of 350 tons per month. EXPAT ENGINEERING: CARE Reaffirms B Rating on INR11cr LT Loan ------------------------------------------------------------- CARE Ratings has reaffirmed ratings on certain bank facilities of Expat Engineering India Limited (EEIL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 11.00 CARE B; Stable; Reaffirmed Facilities Short Term Bank Facilities 13.50 CARE A4 Reaffirmed Detailed Rationale & Key Rating Drivers The ratings assigned to the bank facilities of EEIL continue to remain constrained on account of its small scale of operations with net losses during FY21 (refers to the period April 1 to March 31), moderate capital structure and weak debt coverage indicators, working capital intensive nature of operations and stretched liquidity during. The ratings further remained constrained on account of cyclicality inherent in the real estate sector. The ratings, however, continue to derive strength from experience of promoters in the construction industry and moderate order book position provides medium term revenue visibility. Key Rating Sensitivities Positive Rating Factors * Sustainable improvement in scale of operations of more than INR70 crore with profitability with PBILDT margin above 10% Negative Rating Factors * Deterioration in overall gearing over 2x * Any cashflow mismatch from operations putting pressure on liquidity Detailed description of the key rating drivers Key Rating Weaknesses * Small scale of operations with net losses during review period: The company has reported significant decline in TOI during FY21 (A) and remained at INR26.77 crores as against INR43.33 crores during FY20 due to adverse market conditions as well as lower and slow realization from its customers. However, in 10MFY22(Prov), the company has achieved TOI of around INR20 crores. As a result of decrease in revenue realization for company with incurring proportionately higher fixed overheads, profitability of company decreased marked by PBILDT of INR0.99 crore in FY21 against PBILDT of INR2.68 crore in FY20. Resultantly, with increase in interest charges due to increase in debt level by availing COVID loan during the year, EEIL reported net loss of INR1.77 crore in FY21 as against PAT of INR0.65 crores in FY20. Consequently, EEPL has reported cash loss of INR0.83 crore in FY21 against gross cash accruals of INR1.28 crore in FY20. * Moderate capital structure and weak debt coverage indicators: Capital structure of the company remained moderate marked by overall gearing ratio of 1.47x as of March 31, 2021 (A) as against 1.27x as on March 31, 2020. The moderation was due to higher debt levels owing to addition of COVID loan and marginal decline in tangible net worth level due to accumulation of losses to reserves. Further as a result of reporting cash loss and low operating profitability, debt coverage indicators remained weak marked by negative TDGCA ratio and below unity interest coverage during FY21 (A). * Working capital intensive nature of operations: The operating cycle of the company remained elongated at 780 days during FY21 (A) from 441 days during FY20. The elongation is due to higher inventory holding period which is due to slower sale of constructed units from their customers as well as pending orders which were not realized in time. * Cyclicality inherent to the real estate sector: Being a civil contractor, company is primarily engaged in construction of real estate projects, EEIL is exposed to the cyclicality of the real estate sector. Weak macro-economic scenario persisting after demonetization, RERA and pandemic has significantly impacted the overall scale of operations of the company. Key Rating Strengths * Experienced Promoters: EEIL is promoted by Mr. Santosh Balakrishna Shetty and several others and is engaged in executing contracts for land & infrastructure development and construction of residential & commercial buildings for projects belonging to the Expat group as well as others. * Moderate order book position provides medium term revenue visibility: As of February 8, 2022, the company has outstanding order book of INR139.87 crores which is 5.22x of revenue earned in FY21 and same likely to complete by July 2024 thereby providing medium term revenue visibility to the entity. Liquidity Position: Stretched The company has stretched liquidity position characterized by inadequate cash accruals to meet its repayment obligations of Vehicle loans. However, the said liquidity gap would be met by unsecured loans from promoters as well as realization from receivables. Cash and bank balance remained low at INR0.09 Crore as on March 31, 2021 (A), while it has net cash flow from operations have turned negative at INR0.71 crores as against positive INR1.69 crores during FY20 which was due to blockage of money into inventories. The average utilization of working capital limit for the last 12 months ended January 31, 2022 remained at around 98%. Expat Engineering India Limited (EEIL) was originally a division of Expat Properties India Limited, established in 1999 and part of the Expat Group. Later in 2007, this division demerged into a separate entity, EEIL. This restructuring was done to expand the operations for construction of residential buildings other than the group projects. EEIL, promoted by Mr. Santosh Balakrishna Shetty and several others, is engaged in executing contracts for land & infrastructure development and construction of residential & commercial buildings for projects belonging to the Expat group as well as others. FEEDBACK ENERGY: CARE Reaffirms D Rating on INR209.68cr LT Loan --------------------------------------------------------------- CARE Ratings has reaffirmed ratings on certain bank facilities of Feedback Energy Distribution Company Limited (FEDCO), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 209.68 CARE D; Reaffirmed Facilities Long Term/ Short Term Bank Facilities 49.00 CARE D; Reaffirmed Short Term Bank Facilities 60.00 CARE D; Reaffirmed Detailed Rationale & Key Rating Drivers The rating assigned to the bank facilities of FEDCO continue to factor in delays in debt servicing by the company due to its weak financial performance and poor liquidity position. Rating Sensitivities Positive Factors - Factors that could lead to positive rating action/upgrade: * Timely servicing of debt obligations for more than three months. Detailed description of the key rating drivers Key Rating Weaknesses * Weak financial performance and poor liquidity position: The liquidity position of the company continues to remain poor on account of weak financial performance, leading to ongoing delays in debt servicing. Total operating income of the company declined by ~69% in FY21 to INR198.27 crore. Company reported negative PBILDT of INR56.81 crore as against positive PBILDT of INR95.20 crore in FY20. Company reported net loss of INR181.54 crore as against net profit of INR120.43 crore in FY20. Company is in discussion with lenders for the debt resolution options for the entire debt of the company with options of OTS or revised debt restructuring proposal. Key Rating Strength * Experienced of parent company and management team in infrastructure services: The Company belongs to the Feedback Infra Group and is a wholly owned subsidiary of FIPL. FIPL is an integrated infrastructure services provider offering design and engineering consultancy, project management, operations & management as well as asset improvement services. The board members include persons having vast experience in the field of infrastructure management and advisory. Liquidity: Poor The liquidity profile of the company remained poor as reflected by delay in debt servicing. Company has reported negative GCA in FY20 & FY21. The current ratio of the company also remained low at 0.49x as on March 31, 2021 (PY: 0.95x). FEDCO is a wholly owned subsidiary of FIPL and is operating a distribution franchisee business at four divisions in Meghalaya and Tripura each and executes projects pertaining to Network Roll out Implementation (NRI). The scope of work under operating distribution franchisee business includes consumer metering, billing and revenue collection as well as network operations & maintenance. Furthermore, the scope of work also includes automation of metering facility of sub stations, feeders and high value consumers as well as introduction of smart metering into the area. The above scope of work carried by FEDCO is to increase billing and collection efficiency. FEDCO envisages extending the model to other regions across country. FOODCO DELICACIES: Insolvency Resolution Process Case Summary ------------------------------------------------------------- Debtor: Foodco Delicacies India Private Limited XI/46R, Trichattukulam P.O. Cherthala Kerala 688526 India Insolvency Commencement Date: April 1, 2020 Court: National Company Law Tribunal, Cherthala Bench Estimated date of closure of insolvency resolution process: 180 days from commencement Insolvency professional: CS Ramachandran, Thekkumkat Madathil Interim Resolution Professional: CS Ramachandran, Thekkumkat Madathil 24-53/2, Flat B, Inscape Illam Ragamaligapuram, Kottappuram Near Kottappuram Railway Gate Thrissur, Kerala 680004 India E-mail: ibcfoodco@gmail.com iamramantm@gmail.com - and - CS Ramachandran TM Company Secretary in Practice & Insolvency Professional 1st Floor, Saji Nivas Dr. AR Menon Road, Naickanal Thrissur, Kerala 680001 India Last date for submission of claims: April 15, 2022 HASH EDUCATION: Voluntary Liqidation Process Case Summary --------------------------------------------------------- Debtor: Hash Education Private Limited Num 348/3, 2nd Cross 1st Block, Jayanagar Bangalore 560011 Liquidation Commencement Date: March 28, 2022 Court: National Company Law Tribunal, Bangalore Bench Insolvency professional: Ganesh Panduranga Pai Interim Resolution Professional: Ganesh Panduranga Pai #68, Chitrapur Bhavan 6B, 6th Floor, 8th Main 15th Cross, Malleshwaram Bangalore 560055 E-mail: pragnya.cas@gmail.com Last date for submission of claims: April 27, 2022 HPT CONSTRUCTIONS PRIVATE: Insolvency Resolution Case Summary ------------------------------------------------------------- Debtor: HPT Constructions Private Limited H.No. 102, 1st Floor R/S, Ladrey Mohalla Village Jonapur New Delhi 110047 Insolvency Commencement Date: April 5, 2022 Court: National Company Law Tribunal, New Delhi Bench Estimated date of closure of insolvency resolution process: October 1, 2022 Insolvency professional: Rajiv Bajaj Interim Resolution Professional: Rajiv Bajaj B-269, Lower Ground Floor Chhatarpur Enclave, Phase 2 New Delhi 110074 E-mail: rbajajip@gmail.com cirphpt@gmail.com Last date for submission of claims: April 19, 2022 IMP POWERS LIMITED: Insolvency Resolution Process Case Summary -------------------------------------------------------------- Debtor: Imp Powers Limited Survey No. 263/3/2/2, Sayli Village Umarkuin Road, Silvassa (UT) Dadra & Nagar Haveli 396230 Insolvency Commencement Date: March 31, 2022 Court: National Company Law Tribunal, Mumbai Bench Estimated date of closure of insolvency resolution process: September 25, 2022 Insolvency professional: Mukesh Verma Interim Resolution Professional: Mukesh Verma B1506, Sunteck City Avenue 2 Goregaon West, Mumbai 400104 E-mail: ip.mukeshverma@gmail.com - and - AVM Resolution Professionals LLP Nucleus House, Saki Vihar Road Andheri East, Mumbai 400072 E-mail: ipl.cirp@gmail.com Last date for submission of claims: April 14, 2022 INNOVATIVE IDEALS: CARE Moves D Debt Ratings to Not Cooperating --------------------------------------------------------------- CARE Ratings has migrated the rating on bank facilities of Innovative Ideals and Services (India) Limited (II&SL) to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 10.00 CARE D; ISSUER NOT COOPERATING Facilities Rating moved to ISSUER NOT COOPERATING category Short Term Bank Facilities 0.30 CARE D; ISSUER NOT COOPERATING Rating moved to ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE has been seeking information from II&SL to monitor the rating(s) vide e-mail communications/letters dated February 19, 2022, February 21, 2022, February 23, 2022, February 24, 2022 among others 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 Innovative Ideals and Services India Limited 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). The rating take into account ongoing delays in debt servicing and stretched liquidity position. Detailed description of the key rating drivers At the time of last rating on August 2, 2021, the following were the rating strengths and weaknesses (updated for the information available from BSE): Key Rating Weaknesses * Ongoing delays in debt servicing: As per banker interaction, the account is regular from January 2022. Although, the curing period is not completed. * Stretched liquidity position: The Company has stretched liquidity position marked by negative cash accruals in FY21 and funds blocked in inventory and debtors due to non-execution of orders owing to overall slowdown in industry. Liquidity: Poor The liquidity position remained poor marked by lower accruals when compared to repayment obligations, fully utilized bank limits and low cash balance of INR0.01 crore as of March 31, 2021 (vis-à-vis 0.006 crore as of March 31, 2020). Further, its liquidity position remained weak marked by current ratio and quick ratio stood at 1.86 times and 0.82 times respectively in FY21 owing to higher inventory maintained by the company. The net cash flow from operating activities stood negative at INR2.45 crore in FY21 vis-à-vis negative at INR7.15 crore in FY20. Innovative Ideals and Services (India) Limited (II&SL), is providing services of system integration for security, safety and building automation an installation of various electronic systems. II&SL provides range of services like video door phone, audio door phone, access controls, home automation systems, intrusion alarm system, CCTV systems, fire alarm systems and telecom products. II&SL provides video door phones under its own brand name 'Onyx' & 'Inok'. Further, home automation solutions under the brand name of 'eHomes'. Further, II&SL had developed small product namely 'Savior' with a view of safety and security of senior citizen and children which can be wore as a wristwatch, ARMHer which is mainly for safety for women segment (With press of single button, communication reaches to all emergency contact details with GPS location of the person) and also provides mobile phones under 'Inoyo brand and cookware under the name of Baro Cook. J.S. GROVER: CARE Assigns B Rating to INR10cr LT Loan ----------------------------------------------------- CARE Ratings has assigned rating to the bank facilities of J.S. Grover Constructions Private Limited (JSGCPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 10.00 CARE B; Stable Assigned Facilities Detailed Rationale & Key Rating Drivers The rating profile of JSGCPL is primarily constrained on account of small scale of operations, low profitability margins, elongated collection period, moderate capital structure and debt coverage indicators. Further, the ratings continue to remain constraint by risk associated with participating in tenders and intense competition in the industry, and Project execution risk inherent in various contracts. The credit profile derives comfort from experienced promoters coupled with long track record of operations and Sizable order book in-hand. Rating Sensitivities Positive Factors - Factors that could lead to positive rating action * Improvement in scale of operations to above INR100 crore on sustained basis. * Improvement in collection period below 90 days on sustained basis. Negative Factors- Factors that could lead to negative rating action * Deterioration in the capital structure as marked by overall gearing ratio of above 1.50x on sustained basis. * Decline in PAT margin below 0.75% on sustained basis. Detailed description of the key rating drivers Key Rating Weaknesses * Small scale of operations: The company is a small regional player involved in executing civil construction contracts from government entities. The ability of the company to scale up to larger-sized contracts having better operating margins is constrained by its comparatively low capital base of INR0.05 crore as on March 31, 2021 and total operating income of INR2.18 crore in FY21. The small scale of operations in a fragmented industry limits the pricing power and benefits of economies of scale. The company has achieved total income from operation of INR2.50 crores in 10MFY22 and is expecting to generate total income from operation of INR27.50 crore by the end of FY22. * Low profitability margins: The company's profitability margins have been historically on the lower side owing to the trading nature of the business and intense market competition given the highly fragmented nature of the industry. The profitability margins of the company stood low as marked by PBILDT and PAT margin of 1.03% and 1% in FY21. * Elongated collection period: Due to the nature of the project and counter party being government entities, JSGCPL has high receivable outstanding as on March 31, 2021. Also, a large part of the receivable is pending from long term due to tight liquidity position with the counter party. The high receivable along with long gestation period in recovery of the same put pressure on the liquidity position of the company leading to full utilization of working capital limits. * Moderate capital structure and debt coverage indicators: The capital structure of the company stood moderate as marked by overall gearing and debt equity of 0.50x and 0.50x in FY21 as against 0.68x and 0.68x in FY20 owing to low level of debt primarily unsecured loan from the promoters. Further due to low debt levels, Debt service coverage indicators of the company stood adequate marked by Interest coverage and Total Debt/GCA of 33.84x and 1.07x respectively, in FY21 as against 273.50X and 0.71X respectively, in FY20. * Risk associated with participating in tenders and intense competition in the industry: The company majorly undertakes government projects, which are awarded through the tender-based system. The tender-based business is characterized by intense competition and the growth of the business depends on its ability to successfully bid for the tenders and emerge as the lowest bidder. The high concentration on government contracts also makes the company susceptible to any changes pertaining to government policy in regard to awarding tenders to contractors. * Project execution risk inherent in various contracts: Given the nature of tender awarded, the company is exposed to inherent risk in terms of delays in tender undertaken by the company due to delay in approvals and sanction from regulatory bodies, land acquisition issues etc. thus exposing JSGCPL towards the risk of delay in tender execution resulting in a delay in the realization of revenue growth. Also, the company's ability to execute a tender in timely manner led by its own operational efficiency and timely stage payments received from clients exposes the company to potential risk. Key Rating Strengths * Experienced promoters coupled with long track record of operations: The company is being managed by its directors Mr. Sunil Grover and his brother Mr. Sanjay Grover. Mr. Sunil Grover is post graduate and is in the same line of business for around 35 years. Mr. Sanjay Grover is also post graduate and have an experience of around four decades in the same industry. Both the promoters are into same line of business since inception. With vast experience of around four decades, both the promoters have established relations with reputed customer base as well as suppliers of the domain. Promoters are involved in managing the day-to-day affairs of the business. The promoters are also partners in associate concern J. S. Grover Constructions, partnership firm incorporated in 2010. The firm is also engaged in civil construction work since inception. * Sizable order book in hand: The unexecuted order book of the company as of January 31, 2022 stood at around INR513 crore, thereby giving medium term revenue visibility. The tenor of the orders undertaken by the company is up to 24 months. The orders being executed are fixed price, fixed time in nature and hence effective and timely execution of the orders has a direct bearing on the margins attained by the company. Liquidity: Adequate The liquidity position of the company remains adequate as firm has nil debt repayment in FY22. Liquidity position of the company is characterized by a moderate current ratio, which stood over 1.08 times as at the end of FY21. However, the company has low unencumbered cash and bank balances of INR0.88 crore as of March 31, 2021. J.S. Grover Constructions Private Limited (JSGCPL) was incorporated in 2018. The company is based in Pathankot (Punjab) and engaged into civil construction work such as construction of Roads, highways and so on. The company undertakes construction, improvement, widening, and straightening of roads for government departments, primarily on a subcontract basis. The company is promoted by its directors Mr. Sunil Grover and his brother Mr. Sanjay Grover. Both the directors are into similar line of business since inception. The promoters are also partners in associate concern J. S. Grover Constructions, partnership firm incorporated in 2010. J. S. Grover Constructions is also engaged in civil construction work since inception. As informed by the management, the associate concern has executed contracts amounting to rupees 1400-1500 crores till January 31, 2022. JAYPEE CEMENT: CARE Reaffirms D Rating on INR2,312.94cr Loan ------------------------------------------------------------ CARE Ratings has reaffirmed ratings on certain bank facilities of Jaypee Cement Corporation Limited (JCCL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 2,312.94 CARE D; Reaffirmed Facilities Short Term Bank Facilities 50.00 CARE D; Reaffirmed The ratings of the bank facilities and instruments of JCCL continue to factor in delays in debt servicing by the company due to liquidity constraints. Rating Sensitivities: Positive Factors: * Timely track record of debt servicing by the company for continuous 3 months * Sustainable improvement in the operations of the company Detailed description of the key rating drivers * Weak financial profile in FY21: During FY21, the company's net loss stood at INR204.94 crore on the total operating income of INR196.19 crore against net loss of INR740.11 crore on total operating income of INR166.59 crore in FY20. Low operating income and high interest cost have been the key reasons for weak financial performance. Due to weak financial risk profile of the group, coupled with JCCL's weak operating performance, the liquidity position continued to remain constrained, leading to delays in debt servicing by the company. Liquidity: Poor The liquidity of the company is poor, owing to delays in debt servicing. The company had cash and bank balance of INR9.43 crore as on March 31, 2021. JCCL, a wholly-owned subsidiary of Jaiprakash Associates Ltd (JAL, rated CARE D), is engaged in cement manufacturing. It has a 1.20 MTPA cement grinding unit at Shahabad District Gulbarga, Karnataka along with a 60 MW captive power plant. Another 1.20 MTPA cement capacity at Jaypee Shahabad Cement Project has been kept suspended temporarily. JICS LOGISTIC: CARE Lowers Rating on INR5.0cr LT Loan to D ---------------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of JICS Logistic Limited (JLL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 5.00 CARE D Revised from CARE B-; Facilities Stable/CARE A4; ISSUER NOT COOPERATING Long Term/ 15.00 CARE D/CARE D Revised from Short Term CARE A4 Bank Facilities Long Term/ 7.50 CARE D/CARE D Assigned Short Term Bank Facilities Detailed Rationale & Key Rating Drivers The ratings assigned to the bank facilities of JLL continue to take into consideration delays in servicing of debt repayment obligations. Rating Sensitivities Positive Factors - Factors that could lead to positive rating action/upgrade: * Delay free track record of 90 days in servicing of debt obligations Detailed description of the key rating drivers Key Rating Weaknesses * Delays in Debt servicing: As per audit report for year ended March 31, 2021, there were instances of prolonged delays (exceeding 30 days) in servicing of debt obligations by the company. Presently, there are no delays in servicing of obligations on the overdraft facilities rated by CARE during last few months (from October 2021 till March 24, 2022). However, status of debt servicing for other sanctioned facilities including the facilities for which delays were mentioned in FY21 audit report (not rated by CARE) is not available. Liquidity: Poor The liquidity of JLL continues to remain poor marked by prolonged delays (exceeding 30 days) in servicing of debt obligations by the company. Incorporated in 2009, JICS Logistic Ltd. (JLL) overtook a partnership firm of its promoters, the Jhawar family members. Till FY17, JLL was engaged in providing services like agri-warehousing, agri-commodity finance and commodity trading. FY18 onwards, the company discontinued the business of trading agri-commodity and a agri-commodity finance and shifted its focus on agri-warehousing. As on December 31, 2021 JLL had 7 warehouses (both dry and cold) of which 1 warehouse is on lease and 6 are owned warehouses. It is also affiliated with National Commodity and Derivatives Exchange Ltd. (NCDEX) and MCX as a warehousing service (WSP) provider across the country. JR MODI ASSOCIATES: Insolvency Resolution Process Case Summary -------------------------------------------------------------- Debtor: JR Modi Associates Limited 26, Ground Floor, Sir Fort Road New Delhi South Delhi DL 110049 Insolvency Commencement Date: April 1, 2022 Court: National Company Law Tribunal, New Delhi Bench Estimated date of closure of insolvency resolution process: September 27, 2022 Insolvency professional: Rajiv Bajaj Interim Resolution Professional: Rajiv Bajaj B-269, Lower Ground Floor Chhatarpur Enclave, Phase 2 New Delhi 110074 E-mail: rbajajip@gmail.com cirpmodi@gmail.com Last date for submission of claims: April 14, 2022 KRISH CEREALS: CARE Hikes Rating on INR23cr LT Loan to B -------------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of Krish Cereals Private Limited (KCPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 23.00 CARE B; Stable; ISSUER NOT Facilities COOPERATING; Rating removed from ISSUER NOT COOPERATING category and Revised from CARE C; Stable outlook assigned In the absence of minimum information required for the purpose of rating, CARE was unable to express an opinion on the ratings of KCPL and in line with the extant SEBI guidelines, CARE had reaffirmed the rating(s) of bank facilities of the company to 'CARE C; ISSUER NOT COOPERATING'. However, the company has now submitted the requisite information to CARE. CARE has carried out a full review of the ratings and the rating(s) stand at 'CARE B; Stable' Detailed Rationale & Key Rating Drivers The revision in the ratings assigned to the bank facilities of Krish Cereals Private Limited (KCPL) takes into account the establishment of clear repayment track record. The ratings, further, continue to derive strength from the long track record with experienced and resourceful promoters, favorable location of operations along with established business relationship with customers and suppliers. However, the ratings remained constrained on account of decline in scale of operations with low profitability margins, leveraged Capital structure with weak debt coverage indicators, working capital intensive nature of business and stretched liquidity. The ratings are also constrained by susceptibility to fluctuation in raw material prices and monsoon dependent operation, fragmented nature of industry coupled with high level of government regulation. Rating Sensitivities Positive Factors * Substantial improvement in scale of operations to above INR300 cr with PBILDT margins improving significantly to ~5%, on a sustained basis with overall gearing ratio improving to below 2x, and TDGCA ratio improving to below 10x, on a sustainable basis. Negative factors: * Significant reduction or discontinuance in the funding support from the promoter group going forward. * Any major debt-funded capex resulting in deterioration of capital structure with overall gearing deteriorating further beyond 3.00x. Detailed description of the key rating drivers Key Rating Weaknesses * Declining scale of operations with low profitability margins: KCPL reported a marginal decline in scale of operations and remained at INR236.40 crore at the end of FY21 against INR249.29 crore at the end of FY20 which was due to slow realization during COVID pandemic outbreak as well as decline in sale prices of finished products during the year. During FY22(Prov), the company has achieved TOI around INR236 crores. Further, profitability margin declined marginally over previous year and remained low marked by PBILDT margin of 1.15% in FY21 as against 1.48% in FY20 due to higher material cost on proportionate basis as well as employee costs. Further, PAT Margin remained in the line with previous year at 0.11% during FY21. Overall profitability of KCPL remained low owing to its low value addition nature of business. * Leveraged Capital structure and weak debt coverage indicators: As of March 31, 2021, capital structure has deteriorated and remained leveraged marked by overall gearing ratio of 2.91x as against 2.54x as of March 31, 2020 which was due to higher debt levels as on balance sheet date which was due to higher working capital utilization as well as availment of two Covid loans. Further, as a result of high gearing position with low profitability, its debt coverage parameters remained weak marked by TDGCA of 58.82 years as of March 31, 2021 as against 46.40 years as on March 31,2020. Further, interest coverage ratio remained at 1.04x during FY21 as against 1.37x during FY20 which was due to declined PBILDT in absolute terms. * Working capital intensive nature of operations: The average operating cycle of the company remained elongated at ~89 days during FY21 The same from ~87 days as during FY20. Owing to the seasonality of rice harvest (October to December), rice shellers have to maintain suitable raw material inventory to ensure uninterrupted production throughout the year. Further, basmati rice requires longer ageing of the semifinished rice for better quality which subsequently led to inventory period of ~84 days (PY :~87 days), in FY21. The company generally receives payment in around 2 months from the domestic customers with advance payments from export customers leading to the average collection period of 68 days in FY21 which deteriorated from ~54 days in FY20. Due to the impact of Covid-19, some of the payments from the debtors were elongated resulting in the elongation of the average collection period. On the raw material procurement side the company gets a credit period ranging between 30-60 days. This led to average creditors' period of ~64 days in FY21 the same has remained fluctuating in the past. * Susceptibility to fluctuation in raw material prices and monsoon dependent operation: Agro-based industry is characterized by its seasonality, due to its dependence on raw materials whose availability is affected directly by the vagaries of nature. The price of rice moves in tandem with the prices of paddy. Availability and prices of agro commodities are highly dependent on the climatic conditions. The monsoon has a huge bearing on crop availability which determines the prevailing paddy prices. Since there is a long time lag between raw material procurement and liquidation of inventory, the company is exposed to the risk of adverse price movement resulting in lower realization than expected. * Fragmented nature of industry coupled with high level of government regulation: The commodity nature of the product makes the industry highly fragmented, with numerous players operating in the unorganized sector with very less product differentiation. Furthermore, the concentration of rice millers around the paddy-growing regions makes the business intensely competitive. Furthermore, the raw material (paddy) prices are regulated by the government to safeguard the interest of farmers which limits the bargaining power of rice mills over the farmers. Given the fact that prices for finished products is market determined while the cost of raw material is fixed by Government of India through the MSP (Minimum Support Price) mechanism, the profitability margins remain vulnerable, especially in times of high paddy cultivation. Key Rating Strengths * Establishment of clear track record: As per written feedback from the banker, there are no delays in the repayments of the term loan obligations or overdues in cash credit facilities in last six months ended February 2022. Cash credit and Term Loan accounts of the company with the bank are standard and regular. (Here the term loans are not rated by CARE Ratings.) * Experienced and resourceful promoters with long track record of operations in the rice industry: The operations of the company are currently being managed by Mr. Kamal Singla and Mr. Dinesh Kumar. Both are having an experience of half a decade in the rice industry through their association with the company. There is also an experienced team of professionals for carrying out the day-to-day operations of the company. The promoters & related parties of the company have also infused unsecured loans to fund various business requirements of the company. * Favourable manufacturing location along with established business relationship with customers and suppliers: The company's manufacturing units are located in Nissing (Karnal, Haryana). This area is a hub for paddy/rice, leading to its easy availability. The company was established in 2010, with the promoters having an experience of a decade in the rice industry through their association with the company. Further, favorable location of the plant in close proximity to paddy growers in Haryana has led to development of long-term relationships with the suppliers and therefore easy procurement of raw materials. On the customer side, long track record has enabled the company to establish strong business relationships with its clientele in the market, which in turn leads to repeat orders. Liquidity: Stretched Liquidity remained stretched marked by almost full utilization of working capital limits for the past twelve months ended January 2022. Further, the company has inadequate cash accruals to meet its debt repayment obligation. However, the said gap would be met by fund infusion from promoters. Further, net cash flow from operating activities have turned negative and remained at INR4.85 crore during FY21 which was due to blockage of funds into receivables. As of March 31, 2021, cash and bank balance remained low at INR0.16 crore. KCPL is engaged in the business of milling and processing of basmati rice. The company is also engaged in the procurement of semi-processed rice from the market which is further processed through color sorter and grading machines to remove the impurities. The company has an installed manufacturing capacity of 16 metric tonnes per hour in Nissing (Karnal, Haryana). The operations of KCPL are presently being managed by Mr. Kamal Singla and Mr. Dinesh Kumar. MAP REFOILS: Insolvency Resolution Process Case Summary ------------------------------------------------------- Debtor: Map Refoils India Limited Budasan Kadi Mahesana Gujarat 382715 Insolvency Commencement Date: April 5, 2022 Court: National Company Law Tribunal, Ahmedabad Bench Estimated date of closure of insolvency resolution process: October 1, 2022 Insolvency professional: CA Dhaval Jitendrakumar Mistry Interim Resolution Professional: CA Dhaval Jitendrakumar Mistry 9 B, Vardan Tower Near Lakhudi Cirlce Navrangpura Ahmedabad 380014 E-mail: cadhavalmistry@gmail.com cirp.maprefoils@gmail.com Last date for submission of claims: April 21, 2022 MSH SAREES PRIVATE: Insolvency Resolution Process Case Summary -------------------------------------------------------------- Debtor: M/s MSH Sarees Private Limited 207 Crystal Centretunga Village Raheja Vihar, Andheri (East) Mumbai 400073 Insolvency Commencement Date: March 28, 2022 Court: National Company Law Tribunal, Mumbai Bench Estimated date of closure of insolvency resolution process: September 24, 2022 Insolvency professional: Mr. Anshul Gupta Interim Resolution Professional: Mr. Anshul Gupta Flat no. 1501, Tower no. 4 Spring Grove Towers Lokhandwala Township Kandivali East, Mumbai 400101 E-mail: contactanshulgupta@gmail.com - and - 410, 4th floor Bluerose Industrial Estate Near Metro Mall and Tata Power Petrol Pump, Western Express Highway Borivali (East) 400066 E-mail: mshsarees.cirp@gmail.com Last date for submission of claims: April 11, 2022 PEAK TREASURE: Voluntary Liquidation Process Case Summary --------------------------------------------------------- Debtor: M/s Peak Treasure Capital Private Limited Shop at 308, Plot No. 2, Sector-5 Agarawal Tower MLU Plaza Dwarka, New Delhi 110075 India Liquidation Commencement Date: March 30, 2022 Court: National Company Law Tribunal, Bengaluru Bench Insolvency professional: Ms. Ramanathan Bhuvaneshwari Interim Resolution Professional: Ms. Ramanathan Bhuvaneshwari C-006, Pioneer Paradise 24th Main Road, 7th Phase JP Nagar, Bangalore 560078 E-mail: bhoona.bhuvan@gmail.com Last date for submission of claims: April 30, 2022 PRABAL ROLLER: CRISIL Lowers Rating on INR2.9cr LT Loan to D ------------------------------------------------------------ CRISIL Ratings has downgraded the rating of Prabal Roller Flour Mill (PRFM)to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 2.5 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B/Stable ISSUER NOT COOPERATING') Long Term Loan 2.9 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B/Stable ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with PRFM for obtaining information through letters and emails dated August 19, 2021 and October 6, 2021 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of PRFM which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on AVR is consistent with 'Assessing Information Adequacy Risk'. As per publicly available information, there has been irregularity in company's account conduct due to delay in servicing the debt obligations. Therefore, CRISIL Ratings has downgraded the rating to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B/Stable Issuer Not Cooperating'. PRFM incorporated in 2017. The firm is setting up a Flour Mill with a capacity of 54000 MTPA in Etah (Uttar Pradesh). The firm is promoted by Mr Prabal Pratap Singh. R R HOLIDAY: CARE Reaffirms D Rating on INR60cr LT Loan ------------------------------------------------------- CARE Ratings has reaffirmed ratings on certain bank facilities of R R Holiday Homes Private Limited (RRHHPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 60.00 CARE D Reaffirmed Facilities Detailed Rationale & Key Rating Drivers The rating to the bank facilities of RRHHPL factors in ongoing default in debt servicing. The ratings factors in the impact of second wave of Covid-19 and subsequent state-wise lockdown impacting the revenues and liquidity position of the company. Delay in payment of statutory undisputed dues and moderate debt coverage matrix. However, the ratings derive strength from experienced promoter and favourable location of hotels translating into better average room rent and occupancy rate. Positive Sensitivity: Factors that could lead to positive rating action/upgrade: * Regularization in debt servicing beyond 3 months Detailed description of the key rating drivers Key Rating Weaknesses * Default in servicing interest obligation: RRHHPL has term loan sanctioned from KSIDC, for which the company pays interest on monthly basis amounting to ~INR0.52 crore. As per the confirmation from the company there are ongoing delays in payment of interest to the lenders. * Second wave of Covid-19 impacted revenues: Total operating income (TOI) of RRHHPL fir FY21 was INR13.18 crores as against INR56.58 cr for FY20. Also, the lockdown due to second wave of Covid-19 continue to impact the operations of the company there by significantly impacting the revenue and liquidity position of the company. For 10MFY22, the company reported a TOI INR32.31 crore. * Delay in undisputed statutory dues: Audited financial statement reported delay in undisputed statutory dues to the extent of INR12.78 crore as on March 31, 2020 and INR10.14 crore as on March 31, 2019. The dues pertain to EPF, ESI, TDS, CGST, SGST, KVAT and Luxury tax. Out of total dues, GST dues amounted to INR9 crores, KVAT and Luxury tax amounted to INR0.52 crore and other dues amounted INR0.62 crore. As on February 26, 2021, out of total pending amount, the company has GST payable of INR2.30 crores (remaining INR6.70 been paid by the company), dues related to KVAT and Luxury tax are applied for closure under Amnesty scheme declared by the Government of Kerala and the company has received order to close such tax. Other dues pertain to EPF, ESI and TDS which are routine in nature and payable on regular basis. * Inherent seasonal nature of the hotel industry: The hotel industry is cyclical and inherently seasonal in nature as the demand for the hotel rooms varies with the business cycle. Occupancy also depends on the tourism seasonality as it involves the concentration of tourist inflows during particular months. RRHHPL's Uday Samudra experiences high demand during October-March with occupancy ~85%-90% and low demand during April-September with occupancy ~65%. Uday Suites has a long-term agreement with airlines for providing food & accommodation to Air crew, with tenor of the agreement varying in the range of 2-3 years, Uday sky kitchen provides flight catering to various airlines and revenue from this unit is not affected much by seasonal nature of industry. Further, Uday serenity backwaters at Alleppey has become wedding destination spot over the years. Key Rating Strengths * Experienced promoter: RRHHPL is promoted by Mr. S. Rajasekharan Nair (Chairman & Managing Director) along with his wife Mrs. Udaychandrika Nair (Executive director). Mr. S. Rajasekharan Nair has extensive experience of over four decades in hospitality business. Mr. Raja Gopaal Iyer is a CEO and has experience of over 3 decades in hoteling and hospitality business. * Favorable location of hotels: The hotels are located at favorable locations being developed at close proximity to beach or airport. Two of the hotels, Uday samudra and Uday suites are located near Kovalam beach and Shanghumugham beach respectively. Uday suites and Uday sky kitchen are within 5 kms range from Trivandrum International Airport. Recently developed Uday Serenity Backwaters is located near Punnamada lake. The same can be corroborated from the 57% average occupancy with average room rent being INR10,000 during FY20, despite seasonality. * Moderate capital structure and debt coverage indicators: The net-worth of RRHHPL deteriorated and stood at INR39.49 crores as of March 31, 2021 as against INR49.81 crore as on March 31, 2020. The total debt as on March 31, 2021 stood at INR57.01 crores as against INR46.68 crores as on March 31, 2019. Out of total debt, INR54.24 crores accounted for long term borrowing and INR3.00 crores accounted for short term borrowing. Further, overall gearing deteriorated to 1.44x as on March 31, 2021 as against 0.94x as on March 31, 2020. TD/GCA deteriorated drastically to -36.94x in FY21 (PY: 2.52x). Liquidity Analysis - Stretched The liquidity position of the company remain stretched on the back drop tightly matched accruals as against debt servicing. The company reported a cash losses of INR2.76 crore in FY21. The company had a modest cash balance of INR0.70 crore as on March 31, 2021. As against this the company has interest obligation of INR0.52 crore per month. RR Holiday Homes Private Limited (RRHHPL), incorporated in 1995, is promoted by Mr. S. Rajasekharan Nair, who has over four decades of experience in hotel and hospitality industry. UDS hotels is part of RRHHPL. RRHHPL is engaged in the hospitality, restaurant, flight catering, and travel and tour businesses. RRHHPL owns 3 operational hotels, i.e. Uday Samudra Leisure Beach Hotel, Uday Suites Garden Hotel & Uday Serenity Backwater Resort along with 1 convention centre and 1 multicuisine restaurant. RAHUL SHIVHARE: CARE Reaffirms B Rating on INR4.70cr LT Loan ------------------------------------------------------------ CARE Ratings has reaffirmed ratings on certain bank facilities of Rahul Shivhare (RS), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 4.70 CARE B; Stable; Reaffirmed Facilities Short Term Bank Facilities 4.00 CARE A4 Reaffirmed Detailed Rationale & Key Rating Drivers The ratings assigned to the bank facilities of INR continue to remain constrained on account of fluctuating scale of operations, thin profitability margins, leveraged capital structure with weak debt coverage indicators and stretched liquidity position during FY21 (FY refers to the period April 1 to March 31). The ratings, further, continue to remain constrained on account of its trading nature of business characterized by low profitability and high competition, high business risk due to regulated nature of liquor industry and its constitution as a proprietorship concern. The ratings, however, continue to derive strength from its experienced promoter, favorable demand outlook with a steady increase in consumption of alcohol. Rating Sensitivities Positive Factors * Increase in scale of operations with improved Gross Cash Accruals (GCA) by more than 30% on a sustained basis * Improvement of profitability margins with reporting of PBILDT margin above 5% * Improvement in capital structure marked by overall gearing below 2.50 times. Negative Factors * Deterioration in debt coverage indicators with further deterioration in interest coverage ratio and total debt to GCA * Any changes in government regulation which adversely impacts the operations of the company * Lower than estimated allocation of tender for liquor shop license in projected period resulting in lower scale of operations Detailed description of the key rating drivers Key Rating Weaknesses * Fluctuating scale of operations along with thin profitability: The scale of operations of Rahul declined by 35% and remained at INR58.66 crore in FY21 as compared to INR90.57 crore in FY20 on account of decline in demand from customers due to lockdown period on account of Covid-19 outbreak. PBILDT margin improved marginally however continued to remain thin at 3.35% during FY21 as against 2.35% during FY20 mainly on account of decline in employee cost and other expenses incurred during the year. Consequently, PAT margin also improved marginally but continued to remain thin at 1.56% during FY21 as against 1.29% during FY20. * Leveraged capital structure and weak debt coverage indicators: The capital structure of Rahul continued to remain leveraged marked by an overall gearing ratio at 10.25 times as of March 31, 2021 as against 13.61 times as of March 31, 2020. Improvement was mainly on account of increase in tangible networth on account of accretion of profits to reserves. The debt coverage indicators of Rahul remained weak marked by total debt to GCA (TDGCA) of 22.39 years during FY21 (P.Y.: 17.79 years). Deterioration is on account of decline in GCA level during FY21. Interest coverage ratio remained at 2.07 times during FY21 as against 2.51 times during FY20. * Uncertainty in allocation/distribution of liquor shop license during auction process: As per liquor policy of Madhya Pradesh Government, every year shop licenses are issued through tender and successful bidders get license for trading for a period of one year for a specific location and have to go through similar process every year for renewal of licenses. For the licenses, bidders have to pay certain amount of advance fees in cash and certain percentage of bank guarantee (BG). The BG is released after one month of completion of licenses. The license fee is to be paid proportionately in each quarter by licensee. Every year as per policy, the liquor shop operators in every district are given option for auto-renewal of licenses with stipulated escalation subject to receipt of consent of minimum 70% of shop operators else all shops would go for normal auction process resulting in uncertainty on renewal of licenses. * High business risk due to regulated nature of liquor industry The Indian liquor industry is highly regulated. The industry is witnessing high taxes and numerous regulations from government which impact the pricing flexibility of the industry. The State Governments levy various duties license fee, state level import and export duty, bottling fee, welfare levy, assessment fee, franchise fee, turnover tax, surcharge etc. The state governments are also given liberty to enact the bye-laws for liquor industry on their own; hence any significant policy changes adversely affect the whole industry. Further, the liquor retailing is tender driven and the successful bidders' get license for trading for a period of one year and has to go through same process for renewal of licenses. Hence, it leads to aggressive bidding by the players resulting into pressure on the profitability margins and also uncertainty over future revenue visibility in case of non-renewal of licenses. Key Rating Strengths * Vast experience of partners in liquor trading business: The management of the company has vast experience in the liquor industry, being present in the industry since long period of time through the group - Shivhare. The group has other associate concerns namely Ram Swaroop Shivhare, Gopal Shivhare, Laxmi Narayan Shivhare, Kalpna Shivhare, Kamla Shivhare, Vinum Traders Pvt Ltd, Ranjeet Shivhare and Rahul Shivhare which are engaged in similar business activity. The overall affairs of the firm are managed by Mr. Rahul Shivhare. * Favourable demand outlook with steady increase in consumption of alcohol: Indian Liquor industry is one of the growing industries despite being subjected to high taxes and innumerable regulations by government. Country Liquor (CL) shares more than 50% of total liquor consumption on account of low cost and easy availability. However, in last five years Indian Made Foreign Liquor (IMFL) segment has seen higher growth rate of around 10- 12% than CL whose growth rate was around 5-8%. The factors such as rising income levels and changing mindsets which are more open to the consumption of alcoholic beverages drives the growth of IMFL segment. In addition, changing consumer preference towards premium varieties have resulted in improvement in sales mix of industry. Hence, Indian liquor industry is envisaged to continue the trend of steady growth supported by increasing demand-led volume growth. Liquidity: Stretched The liquidity position of Rahul remained stretched marked by higher utilization of fund-based limits and low cash flow from operations. Utilization level for fund based and non-fund based remained full during past 12 months period ended February 2022, while cash flow from operations improved and turned positive at INR2.02 crore during FY21 as against negative cashflow of INR4.20 crore during FY20 mainly due to increase in the amount of current loans and advances as on March 31, 2021. However, operating cycle of Rahul remained comfortable at zero days during FY21 (3 days during FY20). Cash and bank balance remained moderate at INR5.71 crore as of March 31, 2021. As against GCA of INR1.02 crore in FY21, INR0.13 crore as scheduled repayments towards long term debt obligations during FY22. The firm has availed moratorium benefit on interest portion of cash credit facility for the period of 6 months from March to August 2020 in line with RBI announcement on wake of COVID pandemic. Further, Rahul has also availed Guaranteed Emergency Credit Line (GECL) of INR0.80 crore in October 2020. Rahul Shivhare (RAHUL) was established in February 2016 by Mr. Rahul Shivhare as proprietorship Concern. RAHUL is engaged in the business of retailing of country made and Indian Made Foreign Liquor (IMFL) in Madhya Pradesh. The company's product profile comprises almost all the major brands of IMFL such as Seagram, Signature, Mc Dowells No.1, DIG whisky among others. In addition, the firm also distributes leading beer brands of United Breweries Limited (UBL) such as Kingfisher, Kingfisher Blue, and Kingfisher Ultra beer. Shivhare Liquor group has entities viz. Ram Swaroop Shivhare, Gopal Shivhare, Laxminarayan Shivhare, Kalpana Shivhare, Kamla Shivhare, Gopal Shivhare, Vinum Traders Pvt Ltd, Ranjeet Shivhare, Shriram & Co, Shivhare Liquors, Prabha Star and Rahul Shivhare which are engaged in similar business activity. RAMA NEWSPRINT: Insolvency Resolution Process Case Summary ---------------------------------------------------------- Debtor: M/s. Shree Rama Newsprint Limited Registered office: Village Barbodhan Taluka Olpad, District Surat Gujarat 395005 Corporate office: 10, Abhishree Corporate Park Nr. Swagat Bunglows BRTS Bus Stand Ambali Bopal Road, Ambali Ahmedabad 380058 Insolvency Commencement Date: March 17, 2022 Court: National Company Law Tribunal, Surat Bench Estimated date of closure of insolvency resolution process: September 13, 2022 Insolvency professional: Pradeep Kumar Kabra Interim Resolution Professional: Pradeep Kumar Kabra 301, 3rd Floor, Reegus Business Centre New Citylight Road Above Mercedes Benz Showroom Bharthana-Vesu, Surat 395007 E-mail: ippradeepkabra@gmail.com ippradeep.srnl@gmail.com Last date for submission of claims: March 31, 2022 RAYMON PATEL: Insolvency Resolution Process Case Summary -------------------------------------------------------- Debtor: Raymon Patel Gelatine Private Limited 61 Haribhakti Extension Old Padra Road Baroda Gujarat GJ 390015 IN Insolvency Commencement Date: March 30, 2022 Court: National Company Law Tribunal, Mumbai Bench Estimated date of closure of insolvency resolution process: September 29, 2022 Insolvency professional: Mr. Bhaskar Gopal Shetty Interim Resolution Professional: Mr. Bhaskar Gopal Shetty C-77, Shanti Shopping Centre Mira Road East 401107 Thane District, Maharashtra E-mail: cabgshetty@gmail.com raymondpatelgelatine.cirp@ gmail.com Last date for submission of claims: April 20, 2022 RICHA REALTORS: Insolvency Resolution Process Case Summary ---------------------------------------------------------- Debtor: Richa Realtors Private Limited 101, 1st Floor, Kshitij Plot No. 176, TPS-IV Sena Bhavan Path Dadar West, Mumbai 400028 Maharashtra, India Insolvency Commencement Date: March 22, 2022 Court: National Company Law Tribunal, Mumbai Bench Estimated date of closure of insolvency resolution process: September 18, 2022 (180 days from commencement) Insolvency professional: Neelima Anil Bhate Interim Resolution Professional: Neelima Anil Bhate 401 Citicentre Opp. Ayurved Rasashala Karve Road, Pune 411004 E-mail: neelima_bhate@yahoo.com nbirp05@gmail.com Mobile: 9822076964 Last date for submission of claims: April 5, 2022 ROYAL GARDEN: CARE Lowers Rating on INR9.07cr LT Loan to B ---------------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of Royal Garden Resort (RGR), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 9.07 CARE B; Stable Revised from Facilities CARE B+; Stable Detailed Rationale & Key Rating Drivers The revision in ratings assigned to the bank facilities of RGR considers the significant decline in scale of operations, net loss, leveraged capital structure, weak debt coverage indicators and stretched liquidity in FY21 (refers to period from April 1 to March 31). The rating also factors the firm's presence in a fragmented nature of industry with seasonality associated with business as well as the partnership constitution of the business. The rating, however, derives strength from established track record of operations along with experienced promoters and comfortable operating cycle. Rating Sensitivities Positive Factors * Continuous increase the occupancy level thereby increases the scale of operations with total operating income exceeding Rs.15 crore with tangible networth base exceeding INR8 crore on a sustained basis. * Improvement in profitability margins with PBILDT margin exceeding 20% and PAT margin exceeding 2% on a sustained basis. * Improvement in the capital structure with overall gearing reaching below 1.5x on a sustained basis. * Improvement in the debt coverage metrics with interest coverage exceeding 3.00x and total debt to gross cash accruals reaching below 5x on a sustained basis. Negative Factors * Continued booking of cash losses and resultant weak debt coverage indicators as well as liquidity mismatch * Stretched repayment of debt obligations led by lack of funding support from promoters or low generation of cash flow Detailed description of the key rating drivers Key Rating Weaknesses * Significant decline in scale of operations: The total operating income (TOI) of the firm declined drastically to INR1.61 crore in FY21 as against INR11.79 crore in FY20 on the back significant impact of covid-19 on the hotels and hospitality sector. Operations of RGR were curtailed for most part of FY21 severely affecting revenue during this period. The scale of operations of the company continues to remain small, coupled with a low networth base of INR0.42 crore which further hampers the financial flexibility during exigencies and industry downturn. * Net loss reported in FY21: The firm reported an operating loss as INR0.65 crore compared to an operating profit of INR1.18 crore at the end of the previous year. Despite the decline revenue; RGR continued to incur fixed costs such employee salaries amounting to INR0.37 crore and electricity expenses of INR0.47 crore. Further, on account of a stable depreciation the firm also reported an increase net loss of INR1.49 crore at the end of FY21 against a loss of INR0.55 crore at the end of FY20. * Leveraged capital structure and weak debt coverage indicators: The capital structure of RGR stood leveraged marked by high dependence on external bank borrowings. The deterioration in the same was due to decline in tangible networth owing to accretion of losses to reserves in addition to incremental term loans taken up by the firm. Further, The firm had availed an additional Covid-19 GECL loan in January 2021 leading to increase in overall debt. Overall gearing stood at 27.44x as on March 31, 2021 compared to 3.32x as on March 31, 2020. Debt coverage indicators deteriorated and remained weak on account of operating losses and cash loss during FY21. * Partnership nature: Due to RGR being a partnership firm, it has limited ability to raise capital as it has restricted access to external borrowings where personal networth and credit worthiness of partner affects decision of prospective lenders. Further, it is susceptible to risks of withdrawal of partner's capital at time of personal peril and poor succession decisions may raise the risk of dissolution of the firm. * Fragmented nature of industry with seasonality associated with business: RGR operates in a highly competitive and fragmented industry with a large number of small & mid-sized companies operating hotels & resorts at various places in Mumbai and also to the vicinity of the resort location. Furthermore, the hospitality industry is highly seasonal in nature with non-festive and non-holiday months face a slack in demand. Further, tourist season for water & amusement park is mainly in the summer months viz. March to June in which most of the tourist flow is concentrated. During the rest of the year the tourist flow is significantly lower. All these factors are evidently reflected in the small size of operations of the firm. Key Rating Strengths * Established track record of operations along with experienced promoters: RGR is into existence from past 25 years is promoted by Mr. Jitendra Thakur, Mr. Manoj Thakur and Mr. Mangesh Thakur who have an experience of more than two decades in diversified businesses like hotel industry and construction sector. The promoters have vast experience through their owned businesses under the name of Radhe Constructions Co. and Hotel Royal Hills situated in Vasai as well. Being in the industry for more than two decades has helped the promoters in gaining adequate acumen about hospitality industry and has helped in the smooth operations of the RGR. * Comfortable operating cycle: The operations of RGR are less working capital-intensive owing to the business operating in service sector. The creditors of RGR basically comprise of food, vegetables, facility services, liquor and material providers from whom the entity collectively gets credit period of 30 to 80 days. The collection period elongated to 64 days in FY21 (20 days in FY20). However, the operating cycle remains comfortable at just 3 days owing relative increase in creditor days which stood at 78 days in FY21 (26 days in FY20). Liquidity analysis: Stretched The liquidity position of RGR is stretched with reporting cash losses during FY21 and its negative cash flow from operation of INR0.33 crore in FY21. On the other hand, the company has adequate liquidity characterized by fixed deposits of INR6.12 and free cash & bank balance of INR0.16 crore as on March 31, 2021 to meet its repayment obligation. Royal Garden Resort (RGR) is a Mumbai-based partnership firm, promoted by the Thakur family with key promoters being Mr. Jitendra Thakur, Mr. Manoj Thakur and Mr. Mangesh Thakur. It is engaged in running of a resort which comprises of water and amusement park, hotel comprising of 94 AC rooms (12 super deluxe, 7 double suite room and 75 deluxe rooms) with occupancy rate of 60%, 8 conference halls facility, 2 banquet halls, 6 swimming pools, 1 gym and 1 AC restaurant viz. 'Orient' of 1800 square feet. SANTASHA REAL: Insolvency Resolution Process Case Summary --------------------------------------------------------- Debtor: Santasha Real Estate Private Limited 2914 Street No. 4 Chuna Mandi Paharganj New Delhi Central Delhi DL 110055 Insolvency Commencement Date: March 30, 2022 Court: National Company Law Tribunal, New Delhi Bench Estimated date of closure of insolvency resolution process: September 25, 2022 (180 days from commencement) Insolvency professional: Gunjan Mittal Interim Resolution Professional: Gunjan Mittal A-25A, LGF Lajpat Nagar-II New Delhi 110024 E-mail: ip.gunjanmittal@gmail.com Last date for submission of claims: April 12, 2022 SASTHAA CONSTRUCTIONS: CARE Reaffirms B+ Rating on INR3.60cr Loan ----------------------------------------------------------------- CARE Ratings has reaffirmed ratings on certain bank facilities of Sri Sasthaa Constructions (SSC), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 3.60 CARE B+; Stable Reaffirmed Long-term/ Short-term Bank Facilities 1.01 CARE B+; Stable/CARE A4 Reaffirmed Detailed Rationale & Key Rating Drivers The ratings assigned to the bank facilities of SSC continue to be constrained by small scale of operations, concentrated order book position, moderate capital structure, weak debt coverage indicators, profitability margins susceptible to fluctuation in raw material prices, highly fragmented industry and proprietorship nature of business constitution with inherent risk of withdrawal of capital. The ratings however, derive strength from experienced promoter and long track record of operations. Rating Sensitivities Positive Factors - Factors that could lead to positive rating action/upgrade: * Ability to scale up the operations to over INR25 crores while maintaining the PBILDT margin of over 12% on a consistent basis. * Generate sufficient accruals to improve debt coverage indicators with Total Debt/GCA below 10x. Negative Factors- Factors that could lead to negative rating action/downgrade: * Any sizable decline in the scale of operations with income below INR20 crore along with decline in profitability margins on a sustained basis. * Any withdrawal of capital by promoter leading to further deterioration of overall gearing to above 4x. Detailed description of the key rating drivers Key Rating Weakness * Small scale of operations with concentrated order book position: The scale of operations of the firm remained small ranging from INR8.7 crore to INR21 crore over past four years ended FY21 (refers to period April 1 to March 31). During FY21, the operating income of the firm declined to INR8.72 crore in FY21 from INR13.64 crore in FY20 due to covid lockdown restrictions for period of two months in Q1FY21 (refers to April 01 to June 30). SSC booked income of INR15.31 crore in 11mFY22 (refers to the period April 01 to February 28. The firm has order book of INR25.11 crore as on March 18, 2022 (2.88 times of FY21 turnover) to be executed before November 2023 however it is geographically concentrated with entire orders in Tamil Nadu and Andhra Pradesh. * Moderate capital structure and weak debt coverage indicators: The capital structure remained moderate with overall gearing of 2.29x as of March 31, 2021 as against 1.99x as of March 31, 2020. The cash accruals remained thin resulting in weak debt coverage indicators with Total debt/GCA of 30.46x as of March 31, 2021 as against 10.12x as of March 2020. * Profitability margins are susceptible to fluctuation in raw material prices: The raw material is the major cost driver and the prices of the same are volatile in nature therefore the cost base remains exposed to any adverse price fluctuations in the prices of cement, sand, steel, bricks, being major cost components amongst all materials. Accordingly, the profit margins of the firm are susceptible to fluctuation in raw material prices. * Highly fragmented industry: SSC operates in the construction industry which is characterized by high competition due to low entry barriers, high fragmentation and presence of a large number of players in the organized and unorganized sector. Thus, the entities present in the segment have a low bargaining power vis-a-vis their customers. Proprietorship nature of business constitution with inherent risk of withdrawal of capital. SSC is a proprietorship nature of business wherein the inherent risk of withdrawal of capital by the promoter at the time of their personal contingencies resulting in erosion of capital base leading to adverse effect on capital structure. It is witnessed that the partners had withdrawn the capital of INR1.59 crore over past three years ended FY21. Key Rating Strengths * Experienced promoter: Mr. C.T. Narayanan is a B E (Civil) graduate and has two decades of experience in the civil construction industry resulting in established customer base and seek regular orders from existing customers who are majorly corporate groups involved in real estate. The firm is supported by qualified and experienced second level management team consisting of a technical team which includes engineers, technicians and administrative staff. Liquidity: Stretched Liquidity is stretched marked with tightly matched accruals to repay its term debt obligations and low cash balance of INR0.08 crore as on March 31, 2021. The operating cycle of the firm elongated to 407 days in FY21 from 193 days in FY20. The inventory period elongated due to slowdown in execution due to covid restrictions. The inventory consists of unbilled revenue and receivables includes retention money; the same will be realized post completion of projects. The firm has been sanctioned with cash credit of INR3.60 crore and the average utilisation stood at 90% for last twelve months ended February 28, 2022. Sri Sasthaa Constructions (SSC) was established in 1999 as a proprietorship concern by Mr. CT. Narayanan. The proprietor is also member of various association industry which includes Charter President of Coimbatore builders and contractor association (Cebaca) Life member of Builder Association of India (BAI) and other industrial and social welfare association. SSC is a Class-I contractor and engaged in the construction of buildings, godowns, roads and others miscellaneous civil work and undertakes projects from individuals and private organizations. SIMHAPURI ENERGY: High Court Stays Liquidation Process ------------------------------------------------------ The Times of India reports that Justice G Radha Rani of the Telangana high court on April 1 stayed the liquidation process pertaining to Simhapuri Energy, a subsidiary of Madhucon Infra company. TOI says the judge gave this interim direction after hearing the grievance of the company through its counsel Vikram Pooseria. "When we are ready to pay INR700cr as a one-time settlement, the SBI is going ahead with the process of selling away the company for INR335CR," the report quotes Vikram as saying. The judge directed the liquidator to file his counter and posted the case for two weeks, the report relates. Simhapuri Energy Limited develops, constructs, operates and distributes power from coal based power projects in India. SLACK TECHNOLOGIES: Voluntary Liquidation Process Case Summary -------------------------------------------------------------- Debtor: Slack Technologies India LLP The Pavillion, 5th Floor Laxmi Society, Model Colony Senapati Bapat Rd. 30, Shivajinagar Pune 411016 Liquidation Commencement Date: March 31, 2022 Court: National Company Law Tribunal, Bangalore Bench Insolvency professional: Vinod Sunder Raman Interim Resolution Professional: Vinod Sunder Raman 318, 19th Main 41st Crsoss, 5th Block HBR Layout Bengaluru 560043 E-mail: vinod@vrconsulting.biz Tel: +91-9845884410 Last date for submission of claims: April 30, 2022 SOYUG PRIVATE: CRISIL Assigns B+ Rating to INR25cr Term Loan ------------------------------------------------------------ CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating to the long term bank loan facilities of Soyug Private Limited (SPL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 15 CRISIL B+/Stable (Assigned) Term Loan 25 CRISIL B+/Stable (Assigned) The ratings reflect exposure to risks related to ongoing project and expected leveraged capital structure. These weaknesses are partially offset by extensive industry experience of the promoters. Key Rating Drivers & Detailed Description Weaknesses: * Exposure to risks related to ongoing project: SPL is expected to commence its commercial operations partially from April 2022 and in full swing latest by October 2022. Demand risk is expected to be low as the entity is promoted by promoters having extensive industry experience in diversified business lines and in agricultural products. Timely completion and successful stabilization of its operations in the new unit will remain a key rating sensitivity factor. * Expected leveraged capital structure: SPL is expected to have an average financial risk profile with high gearing and moderate debt protection metrics. The project is aggressively funded through a debt equity ratio of 1.04 times. Strength: * Extensive industry experience of the promoters: The promoters have an experience of over 2 decades in agricultural products and other businesses. This has given them an understanding of the dynamics of the market and enabled them to establish relationships with suppliers and customer. Liquidity: Stretched Cash accruals are estimated to be over INR1.5 crores with no repayment obligation in fiscal 2023. In fiscal 2024, net cash accrual of over INR4.5 crore are expected to be sufficient against term debt obligation of INR2 crore. In addition, it will act as cushion to the liquidity of the company. Promoters are also expected to provide unsecured loans of about INR12 crore to support the business over the medium term. Outlook: Stable CRISIL Ratings believes that SPL will benefit from its promoter extensive industry experience. Rating Sensitivity Factors Upward factors * Commencement and stabilization of operations at its proposed plant in time and reports significant revenue and profitability with accruals of more than INR4.5 crore over the medium term * Improvement in financial risk profile resulting in stronger capital structure Downward factors * Faces a considerable delay in the commencement of its operations * Significantly low revenue and operating margin SPL was incorporated on 17th May 2021 and is setting up a unit for manufacturing refined soyabean and mustard oil and other by-products with installed production capacity of 500 TPD. SPECULUM PLAST: CARE Reaffirms B+ Rating on INR8.22cr LT Loan ------------------------------------------------------------- CARE Ratings has reaffirmed ratings on certain bank facilities of Speculum Plast Private Limited (SPPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 8.22 CARE B+; Stable Reaffirmed Facilities Long-term/ 0.45 CARE B+; Stable/CARE A4 Short-term Reaffirmed Bank Facilities Detailed Rationale & Key Rating Drivers The ratings assigned to the bank facilities of SPPL continue to be constrained by Small scale of operations with moderate profitability margin, Leverage capital structure and weak debt coverage indicators, elongated operating cycle and stretched liquidity FY21 (refers to period from April 1 to March 31). The rating also factors the company's presence in a competitive industry along with susceptibility to volatility in prices of raw material. The rating, however, derives strength from its experienced management. Rating Sensitivities Positive Factors * Sizable improvement in total operating income to INR40.00 crore and above on a sustained basis. * Improvement in PBIDLT margin and PAT margin above 12% and 4% respectively on continuous basis * Improvement in operating cycle of below 30 days on sustained basis Negative Factors * Deterioration in overall gearing level above 4.00x on sustained basis. Detailed description of the key rating drivers Key Rating Weaknesses * Small scale of operations with moderate profitability margin: Scale of operations improved marginally albeit remain small marked by a total operating income (TOI) of INR28.80 crore at the end of FY21 compared to INR24.54 crore at the end of the previous year as the fortunes of the company are majorly linked to the automobile sector which remained subdued during FY21 leading to small scale of operation. Profitability margins remained moderate at 6.67% at the end of FY21 compared to 6.27% at the end of FY20. Although the company is able to pass on the increase in costs to its customers with a certain time lag of one quarter; inability to do so under any circumstance impacts its margins. Additionally, prices raw materials used in plastic moulding process such as plastic granules are volatile in nature given that they are derivatives of crude oil. Further, with an increase in interest costs with prior period adjustment of depreciation company reported low net profitability of INR0.12 crore as in FY21 (P.Y. INR0.41 crore). However, gross cash accruals increased but remained low at INR0.71 crore in FY21 against INR0.47 crore in FY20. * Competitive industry along with susceptibility to volatility in prices of raw material: SPPL operates in a highly competitive industry with low entry barrier, large presence of unorganized players and commoditized nature of product. Therefore, the profitability margins of the players in this industry are susceptible to the volatile raw material prices & the entity's ability to pass on the same to the customers. The prices of the key raw materials, plastic granules, are highly volatile as it is a crude oil derivative. Business risk profile and profitability of the company will remain susceptible to such volatility, which is compounded by a sizeable inventory. * Leverage capital structure and weak debt coverage indicators: SPPL's capital structure remained leveraged marked by an overall gearing of 2.98x as on March 31, 2021 (P.Y: 2.58x) owing to increase in Overall debt mainly in form of availing working capital loans during FY21. As a result of low profitability, debt coverage indicators remained weak marked by modest interest coverage ratio stood at 1.59x at the end of FY21 (P.Y.: 1.63x) and TD/GCA improved as an increase cash profit offset the increase in overall debt albeit remained weak at 17.50 years (P.Y.: 22.81 years). * Elongated operating cycle: SPPL's operating cycle elongated at 95 days in FY21 against 85 in FY20 marginally on account of increase in receivables and inventory period. The company has to maintain a sufficient level of inventory to cater to the tailored requirements of its customers while it has very little negotiating power with respect to these aforementioned customers who are auto OEMs, sanitaryware manufacturers. Key Rating Strengths * Experienced Management: Speculum Plast Private Limited (SPP) commenced its commercial operations in 2009 and is currently being managed by Mr. Ashok Kakkar, Mr. Gaurav Kakkar and Mr. Gautam Kakkar. Mr. Ashok Kakkar is graduate by qualification and has experience of around two decades through his association with SPP since inception. Both Mr. Gaurav Kakkar and Mr. Gautam Kakkar are postgraduate by qualification and have around a decade experience in the manufacturing industry through their association with SPP. In addition, the operations of the company are smoothly carried out by a team of managers and professionals who have requisite experience in their respective fields. Liquidity analysis: Stretched The liquidity profile of SPPL remains stretched as reflected tightly matched gross accruals to meet its debt repayment obligations. The company had a free cash and bank balances of INR0.12 crore, as of March 31, 2021 (PY: 0.30 cr.). Further, the company had an unencumbered cash and bank balance of INR0.01 crore at the end of January 2022.The average utilization of the working capital borrowings stood close to 93% for the past six months ended January 2022. There have been multiple instances of cheque returns for various reasons such as insufficient funds, stop payment by SPPL. However, CFO was remained moderate at INR3.14 crore in FY21 improved from negative CFO of INR2.55 crore in FY20. Gurgaon based Speculum Plast Private Limited (SPP) was incorporated as a private company in 2005 and is currently being managed by Mr. Ashok Kakkar, Mr. Gaurav Kakkar and Mr. Gautam Kakkar. The company is engaged in manufacturing, electroplating and injection moulding plastic components at its manufacturing plant located in Manesar (Gurgaon). The company's products find its application in the auto component industry for OEM's, sanitary ware, cosmetic products etc. The main raw material for electroplating and injection moulding plastic components is chemicals, metal, plastic granules which company procures from traders and distributors located all over India. TALECH SOFTWARE: Voluntary Liquidation Process Case Summary ----------------------------------------------------------- Debtor: Talech Software Solutions Private Limited No. 9/611, Perumal Nagar Sivagami Nagar Medavakkam Chennai 600100 Liquidation Commencement Date: April 2, 2022 Court: National Company Law Tribunal, Chennai Bench Insolvency professional: Viswanathan Rajagopalan Interim Resolution Professional: Viswanathan Rajagopalan Plot No. 4, 1/787A Deivanai Nagar II Street Madipakkam, Chennai 600091 Tamilnadu Mobile: 6379252059 E-mail: viswanathan.irp@gmail.com Last date for submission of claims: May 2, 2022 UJJWAL LUXURY: CARE Reaffirms B- Rating on INR5.37cr LT Loan ------------------------------------------------------------ CARE Ratings has reaffirmed ratings on certain bank facilities of Ujjwal Luxury Hotels Private Limited (ULHPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank Facilities 5.37 CARE B-; Stable Reaffirmed Detailed Rationale & Key Rating Drivers The rating assigned to the bank facilities of ULHPL continues to remain constrained on account of financial risk profile marked by small scale of operations with net losses, weak capital structure and debt coverage indicators and poor liquidity. The rating further remains constrained on account of its presence in the intense competitive and cyclical industry. The rating, however, continues to derive strength from experienced and resourceful promoters and location advantage of the hotel. Key rating sensitivities Positive Rating Factors * Significant improvement in OR as well as ARR resulting to increase in total operating income above INR70 crore and improvement in profitability margins marked by PBILDT margin of above 7% * Reporting of positive net-worth. Negative Rating Factors * Reporting continuous losses putting pressure on liquidity * Delay in infusion of unsecured loans from promoters to support the repayments as well as operations. Detailed description of the key rating drivers Key Rating Weaknesses * Small scale of operations with net losses and cash losses: The company has reported decline of in TOI during FY21 (A) and remained at INR1.17 crores as against INR4.92 crores. The decline was primarily due to Covid Pandemic outbreak which has resulted into lower room booking as well as decline in Bar sales and food sales. However, ULHPL has clocked sales worth approximately INR2.75 crore in 11MFY22(Prov). The TOI of ULHPL comprises income from room sale of 75%, food and bar sales of 19% and balance income has been generated from other activities in FY21. During FY21, the average occupancy rate of the hotel property remained at 24% which has reduced from occupancy rate of 62% during FY20. Further, Average Room Rate (ARR) remained at INR1062 during FY21(FY20:INR2249) with the highest ARR reported in the month of June 2020. Further, the profitability of the ULHPL declined on back of decrease in scale of operation with incurring proportionately high fixed overheads marked by PBILDT margin of 5.90% in FY21 against 10.85% in FY20. Resultantly, with proportionately higher depreciation and interest charges born by the company it has reported net losses and cash losses of INR1.89 crore and INR0.78 crore in FY21 against those were INR1.79 crore and INR0.47 crore in FY20. The operations of the company have been supported through infusion of unsecured loans from promoters from time to time. * Weak solvency position and debt coverage indicators: On back of erosion of networth as a result of reporting continuous losses, the capital structure of ULHPL remained weak marked by negative overall gearing ratio as on March 31, 2021. Further, on back of high debt level and its resultant high interest cost with reporting minimal operating profitability and cash losses in FY21, the debt coverage indicators of ULHPL also remained weak marked by negative TDGCA ratio and below unity interest coverage ratio in FY21. However, the company is repaying its debt through fund infusion by promoters. The promoters are regularly infusing unsecured loans to support the operations. In FY21 promoters have infused USL of INR0.77 crore (FY20: INR2.76 crore). Further, in 11MFY22, the promoters have infused the funds in the form of Unsecured loans amounting to INR1.05 crores to support the business operation. * Intense competition and Inherent cyclicality of the hospitality industry: The Indian hospitality industry is highly fragmented and region-specific in nature with presence of large number of organized and unorganized players spread across all regions. Leisure destinations like Jaipur are highly dependent on tourist arrivals and it receives a mix of domestic as well as foreign tourists during the season. The demand is seasonal in nature due to dependency on tourist arrivals (both foreign and domestic) with the prime season being October to March. The hospitality industry is highly cyclical in nature and sensitive to any untoward events such as slowdown in the economy. It is also highly region specific with tier-1 cities catering to the business segment and other cities like Jaipur catering to the leisure segment. Leisure and luxury, contributed substantially by inbound tourists, used to be the mainstay of the hotel industry in this part of country. Further, destination weddings and MICE activities have also remained the mainstay for the industry. Key Rating Strengths * Experienced and resourceful promoters: The promoters of ULHPL are resourceful and have rich experience in liquor trading business. ULHPL is managed by Mr. Daya Ram Poonia and Mr. Bhagirath Poonia. Mr. Daya Ram Poonia and Mr. Bhagirath Poonia have more than two decades of experience in liquor trading business and other businesses. They are assisted by other members of the family. Further, the promoters have forayed into hospitality business through ULPHL in FY16 and also have mining business. Promoters have been supporting the operations as well as debt servicing of ULHPL through infusion of funds in the form of unsecured loans. The unsecured loans from promoters group stood at INR18.35 crore as on March 31, 2021 as against INR17.58 crore as on March 31, 2020. In 11MFY22, the promoters have infused the funds in the form of Unsecured loans amounting to INR1.05 crores. * Location advantage: ULHPL's hotel is located at center of the Jaipur city and at walking distance from Central bus stand of Jaipur and railway station which gives it location advantage. Further, Jaipur is one of the tourism centered cities in Rajasthan which opens a wide frontier of growth of hotel industry. However, the hospitality industry has been hit due to Covid-19 pandemic due to which the company envisages decline in its scale of operations during FY22 on y-o-y basis. Liquidity: Poor Liquidity of the company remained poor on account of continuous incurring of net loss and cash loss. The company relies on customers advances and unsecured loans for meeting its working capital requirement as well as debt servicing. During peak season i.e. December-March, the company generally experiences high working capital requirement which is partly met through advance received from customers. For food and bar operations, the company gets a credit of more than one month from suppliers resulting in negative working capital cycle. Further, company maintains inventory of 5-20 days for food and bar to cater the customers demand. Additionally, its cash flow from operating activities has turned negative and stood at INR0.08 crore in FY21 as against positive cash flow of INR0.33 crore during FY20 due to higher in working capital gap. Ujjwal Luxury Hotels Private Limited (ULHPL) was incorporated in June 2011 as a private limited company by Mr. Bhagirath Poonia and Mr. Daya Ram Poonia with an objective to establish a three-star hotel at Jaipur (Rajasthan). ULHPL has completed construction work on the hotel in the middle of November 2015 and has started its operations from December 2015. The hotel has a facility of total 75 deluxe rooms along with one restaurant cum bar and one banquet hall with capacity of 400 persons. UT LIMITED: Liquidation Process Case Summary -------------------------------------------- Debtor: UT Limited Registered office: Naman Villa, 28-A Ashutosh Chowdhury Road Kolkata 700019 West Bengal Corporate office: Budge Budge Trunk Road P.O. Chandannagar Maheshtala, District-South 24 Parganas, Kolkata 700141 Liquidation Commencement Date: March 30, 2022 Court: National Company Law Tribunal, Kolkata Bench Date of closure of insolvency resolution process: September 27, 2021 Insolvency professional: Anang Kumar Shandilya Interim Resolution Professional: Anang Kumar Shandilya T9, 1904, Exotica Dreamville Sector 16C, Greater Noida West Gautam Buddha Nagar 201318 Uttar Pradesh E-mail: csanang@gmail.com - and - Naman Villa, 28-A Ashutosh Chowdhury Road Kolkata 700019 West Bengal E-mail: liq.utltd@gmail.com Last date for submission of claims: April 29, 2022 VRMX CONCRETE INDIA: Insolvency Resolution Process Case Summary --------------------------------------------------------------- Debtor: VRMX Concrete India Private Limited Old No. 110, New No. 111 A 2nd Floor, Mount View Building Mount Road, Guindy Chennai 600032 Tamilnadu, India Insolvency Commencement Date: March 25, 2022 Court: National Company Law Tribunal, Chennai Bench Estimated date of closure of insolvency resolution process: September 17, 2022 Insolvency professional: Mrs. Ganesan Geetha Interim Resolution Professional: Mrs. Ganesan Geetha 12, I Cross Street MES Road East Tambaram Chennai, Tamil Nadu 600059 E-mail: kumarsgeetha@gmail.com Last date for submission of claims: April 8, 2022 WILSON TOOL: Voluntary Liquidation Process Case Summary ------------------------------------------------------- Debtor: Wilson Tool India Private Limited C/o eLagaan Biztech Labs, 3rd Floor 166 Arekere Mico Layout Bannerghatta Road Bangalore, Karnataka 560076 Liquidation Commencement Date: March 31, 2022 Court: National Company Law Tribunal, Ghaziabad Bench Insolvency professional: Sarvesh Kashyap Interim Resolution Professional: Sarvesh Kashyap 101, Nipun Plaza Sector-1 Near Max Hospital Vaishali, Ghaziabad 201010 Tel: 9818908851 E-mail: sarvesh_dam@yahoo.com Last date for submission of claims: April 30, 2022 =============== M A L A Y S I A =============== 1MDB: US Jury Convicts Former Goldman Banker -------------------------------------------- Channel News Asia reports that a New York jury on April 8 convicted a former Goldman Sachs banker for his role in propagating a massive bribery and money laundering scheme involving a state-owned Malaysian investment fund. CNA relates that the jury found Roger Ng, a managing director at Goldman from 2005 to 2014, guilty on all three counts connected to the massive 1MDB bribery scheme, which involved the embezzlement of billions of dollars of funds originally raised by investment bank. According to the report, the 1MDB fund was set up to promote the Malaysian economy, but was spectacularly looted in a scandal that roiled the country's politics and marred Goldman's reputation. Mr. Ng and his co-conspirators paid more than US$1 billion in bribes to government officials to secure three bond large transactions for Goldman with 1MDB, according to the US Department of Justice. The conspirators laundered billions of dollars in funds from 1MDB, including some of the funds from the Goldman transactions, the report says. Some of the money went to luxury items, such as a US$51 million Jean-Michael Basquiat painting and millions of dollars in Hermes handbags, the Justice Department said. CNA relates that the eight-week trial included testimony from Timothy Leissner, a former Goldman partner who has pleaded guilty in the case and testified at length on his role and that of Ng in the scheme. Attorneys for Ng had argued that Leissner's testimony should be discounted in light of his plea and that Ng was a pawn in the larger conspiracy. Ng faces up to a 30-year sentence following his conviction, a department spokesman said. "Today's verdict is a victory for not only the rule of law, but also for the people of Malaysia for whom the fund was supposed to help," the report quotes US Attorney Breon Peace as saying. "With today's verdict, a powerful message has been delivered to those who commit financial crimes motivated by greed," Peace said. "You will be caught, prosecuted and convicted, like Ng, and face a long prison sentence." The Goldman Sachs bond deals raised US$6.5 billion, yielding the prestigious New York investment bank $600 million in fees and revenue, while Ng garnered some US$35 million in kickbacks, the Justice Department said. In October 2020, Goldman agreed to pay US$2.9 billion in penalities in a DOJ settlement that included a guilty plea in US court by a Malaysian unit of the bank. About 1MDB Kuala Lumpur-based 1Malaysia Development Bhd (1MDB) is an insolvent Malaysian strategic development company, wholly owned by the Malaysian Minister of Finance. 1MDB was established in 2009 to foster long-term economic development for the country by forging global partnerships, particularly in energy, real estate, tourism, and agribusiness. The Company was founded shortly after Dato Sri Najib Razak became Prime Minister of Malaysia in July 2009. Najib said the establishment of 1MDB into a federal entity was to benefit a majority of Malaysians. 1MDB is said to have raised billions of dollars in bonds, for investment projects and joint ventures, between 2009 and 2013. Among those projects are the Tun Razak Exchange, Tun Razak Exchange's sister project Bandar Malaysia, and the acquisition of three independent power producers. The Company came into heavy scrutiny in 2015 for suspicious money transactions and evidence pointing to money laundering, fraud and theft. The corruption scandal in 1MDB has implicated high-level officials, including Prime Minister Najib Razak, as wells as banks and financial institutions around the world. In 2016, the U.S. Department of Justice filed a lawsuit, alleging that at least US$3.5 billion has been stolen from 1MDB. In September 2020, the alleged amount stolen had been raised to US$4.5 billion and a Malaysian government report listed 1MDB's outstanding debts to be US$7.8 billion. Malaysia has been filing lawsuits over the years in an effort to recover the missing billions of dollars. Among others, in May 2021, Malaysia filed 22 civil suits against entities and people involved in the corruption scandal, including units of Deutsche Bank and JP Morgan. Malaysia said in September 2020 it has so far recovered about US$3.24 billion in assets linked to the 1MDB matter. This amount includes about US$600 million cash and assets returned by U.S. authorities; about US$2.5 billion paid by Goldman Sachs as settlement; as well as US$780 million in settlement amounts from Malaysian banking group AmBank and audit firm Deloitte. =============== M O N G O L I A =============== MONGOLIAN MINING: S&P Puts 'B-' ICR on CreditWatch Negative ----------------------------------------------------------- S&P Global Ratings, on April 7, 2022, placed its 'B-' issuer credit rating and the 'B-' issue rating on Mongolian Mining Corp.'s (MMC) U.S. dollar-denominated bond on CreditWatch with negative implications. The CreditWatch placement reflects the possibility of a downgrade of one or more notches within the next 90 days if MMC's liquidity position deteriorates sharply and we see default risk on its debt obligations within the next 12 months. Continued low throughput at the China-Mongolia border could put MMC at risk of meeting its debt obligations in 2022. MMC could fail to meet its debt obligations this year if the company extends its production halt amid subdued border throughput. The company's plan to resume production in May could be further delayed if the border throughput does not improve in the second quarter. MMC has suspended operations since December 2021 to minimize operating costs and preserve cash due to very low border throughput. The company's minimum cash burn per month is around US$3 million. A delayed resumption of production could drag on the company's ability to generate sufficient cash flow to repay its debt obligation in the second half of 2022. This includes the US$15.5 million outstanding amount of the 2022 U.S. dollar notes due on Sept. 30 and US$20 million interest on the 2024 U.S. dollar notes due on Oct. 15. S&P estimates MMC had about US$55 million in cash on hand by the end of March 2022. This will be sufficient to cover its April obligations of US$20 million interest on the 2024 notes and the US$7.0 million acquisition payment of 10% equity of a joint venture with CHN Energy Coal Coking Co. Ltd. High uncertainty on border improvement in 2022 would continue to weigh on MMC's coal sales volume.Throughput at Gashuunsukhait-Ganqimaodu (GS-GM) border could be fickle if China tightens border controls to respond to a recent proliferation of COVID-19 cases in the country. Even though the throughput cap at the border was eased to 300 trucks per day from April 1, 2022, the ramp-up is subject to control measures related to COVID. The GS-GM border throughput was 125 trucks in the first quarter following China's tighter caps imposed after the outbreak of the omicron variant. Average daily throughput was around 400 trucks per day in November 2021 before the highly contagious variant emerged, and it was about 750 trucks per day prior to the pandemic. If border throughput stays at the current level of 200 trucks per day, MMC could only sell less than one million ton of coal in 2022 based on its plan to resume production in May. The company sold 1.3 million tons of coking coal products in 2021 and the average daily throughput last year was around 210 trucks. MMC's ability to generate cash from pre-sales could be constrained after the company pre-sold all its inventory on hand. MMC has been carrying out pre-sales of coal since 2021 to generate cash. However, pre-sale demand will be much lower after inventory is sold off, given higher uncertainty in delivery time. Although the selling price of pre-sales contracts could be at a steep discount to standard delivery contracts, customers are requested to make full advance payment prior to the delivery. The company expects to receive US$54 million in April and May which is the remaining payment from coal pre-sold in the first quarter this year. This additional cash would provide a better buffer for repaying its debt in the second half of the year. However, it's uncertain if the company will receive the cash on time. CreditWatch The CreditWatch with negative implications reflects the possibility of a downgrade of one or more notches within the next 90 days if MMC's liquidity position deteriorates sharply and S&P sees default risk on its debt obligations within the next 12 months. This could occur if border throughput does not improve in the second quarter such that the company delays its production resumption or is unable to pre-sell its coal to raise sufficient cash. ===================== N E W Z E A L A N D ===================== BISCUIT CREEK: Creditors' Proofs of Debt Due on May 20 ------------------------------------------------------ Creditors of Biscuit Creek Forest Limited are required to file their proofs of debt by May 20, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on April 7, 2022. The company's liquidators are: Simon Dalton Benjamin Francis Gerry Rea Partners PO Box 3015, Auckland HUFCOR NEW ZEALAND: Creditors' Proofs of Debt Due on May 11 ----------------------------------------------------------- Creditors of Hufcor New Zealand Limited are required to file their proofs of debt by May 11, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on April 6, 2022. The company's liquidators are: Iain Bruce Shephard Jessica Jane Kellow BDO Wellington Level 1, 50 Customhouse Quay Wellington 6011 INSPIRACION LIMITED: Creditors' Proofs of Debt Due on May 20 ------------------------------------------------------------ Creditors of Inspiracion Limited are required to file their proofs of debt by May 20, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on April 6, 2022. The company's liquidators are: Simon Dalton Matthew Kemp Gerry Rea Partners PO Box 3015, Auckland MANCHESTER UNITY: Fitch Affirms 'BB-' Insurer Fin. Strength Rating ------------------------------------------------------------------ Fitch Ratings has affirmed Manchester Unity Friendly Society's (MUFS) Insurer Financial Strength (IFS) Rating at 'BB-' (Moderately Weak). The Outlook is Stable. KEY RATING DRIVERS The affirmation reflects Fitch's expectation that MUFS' credit profile will remain intact as it completes the proposed conversion of its insurance liabilities and cancellation of its insurance license. The ratings reflect MUFS' 'Good' capitalisation and leverage, which is offset by a 'Least Favourable' company profile and 'Moderately Weak' financial performance and earnings. MUFS is looking to convert two of its largest insurance benefit funds - the funeral assistance and increasing assurance benefit funds - to debt securities. The society expects to have its insurance license cancelled after the conversion and to transfer NZD10 million of excess capital, currently held for regulatory solvency purposes, to a new fund to support benefits payments upon a member's death. The society says it will not change the capital structure until the conversion and license cancellation are complete. The conversion proposal was approved by member representatives at MUFS' conference in November 2021 and is subject to regulatory approval. The conversion will see the policyholder protection afforded to fund members by the Insurance (Prudential Supervision) Act 2010 replaced by investor protection under the Financial Markets Conduct Act 2013. MUFS' funeral assistance and assurance benefit funds, which account for over 98% of its insurance liabilities, have been closed to new business since 2012. MUFS also plans to exit a small number of insurance products that are still open to business. Fitch does not expect a significant change in MUFS' capital position while it operates as an insurer. The regulatory solvency margin widened to NZD20.3 million by end-November 2021 (financial year ending May 2021 (FYE21): NZD14.6 million) on higher interest rates. Consequently, the regulatory solvency ratio improved to 255%, from 205%. However, Fitch thinks MUFS' small absolute capital base and limited access to new capital leave it susceptible to external shocks and remote operational risks. Fitch ranks MUFS' company profile as 'Least Favourable' compared with that of other New Zealand life insurance companies. This reflects its 'Least Favourable' business profile and 'Moderate/Favourable' corporate governance. The business profile assessment is driven by the society's limited competitive positioning and diversification as well as declining membership. MUFS has a market share of less than 1% in the domestic life insurance sector and most of its life products are closed to new business. Fitch sees MUFS' financial performance and earnings as 'Moderately Weak' in light of falling premiums amid decreasing membership and because most of its insurance products are closed to new business. MUFS is not a profit-maximising entity due to its mutual ownership. Premiums contracted by 7% in FY21, following a 4% contraction in FY20. MUFS recorded a net profit of NZD4.7 million in 1HFY22 and NZD3.3 million in FY21, supported by revaluation gains from its property investments and rising interest rates. This followed a net loss of NZD1.4 million in FY20. The FY20 result was impacted by a liability-adequacy test that increased insurance contract liabilities by NZD5.3 million due to lower interest rates. MUFS' risky assets ratio of 15% at end-1HFY22 remained well below Fitch's criteria guidelines for a 'BB' rated insurer. The ratio is driven by exposure to unaffiliated equity investments and a small amount of unrated corporate debt. Unaffiliated equity investments accounted for 5% of invested assets at end-1HFY22. The mismatch in the duration of MUFS' assets and liabilities has fallen with the purchase of long-dated bonds in recent years. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: -- Considerable weakening in MUFS's capital position or regulatory solvency margin. -- Continued deterioration in the weak business profile, including a decrease in the number of lodges and significant reduction in the membership base. Factor that could, individually or collectively, lead to positive rating action/upgrade: -- A sustained improvement in the business profile, including growth in the society's membership base. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. MTF PANTERA 2021: Fitch Hikes Rating on Class F Notes to 'BB+' -------------------------------------------------------------- Fitch Ratings has upgraded five note classes and affirmed six from MTF Rambler Trust 2019 and MTF Pantera Trust 2021. The Outlook is Stable. The transactions consist of notes backed by a pool of New Zealand automotive loan receivables originated by Motor Trade Finance Ltd (MTF). The notes were issued by Trustees Executors Limited in its capacity as trustee. The upgrade of Rambler's class D and E notes and Pantera's class D, E and F notes follows an increase in credit enhancement via the accumulation of overcollateralisation. The ratings of class B and C notes from both trusts are capped by the trust's exposure to transaction account bank counterparty risk. DEBT RATING PRIOR ---- ------ ----- MTF Rambler Trust 2019 A NZRAMTFAT017 LT AAAsf Affirmed AAAsf B NZRAMTFAT025 LT AAsf Affirmed AAsf C NZRAMTFAT033 LT A+sf Affirmed A+sf D NZRAMTFAT041 LT A+sf Upgrade A-sf E NZRAMTFAT058 LT Asf Upgrade BBBsf MTF Pantera Trust 2021 Class A NZPANTFAT019 LT AAAsf Affirmed AAAsf Class B NZPANTFBT025 LT AAsf Affirmed AAsf Class C NZPANTFCT031 LT A+sf Affirmed A+sf Class D NZPANTFDT047 LT A-sf Upgrade BBB+sf Class E NZPANTFET052 LT BBB-sf Upgrade BB+sf Class F NZPANTFFT067 LT BB+sf Upgrade B+sf KEY RATING DRIVERS Stable Performance and Collateral Characteristics: Underlying asset performance has been better than Fitch's base-case net loss expectations; 30+ and 60+ day arrears were 1.2% and 0.6% for Rambler, respectively, and 0.6% and 0.3% for Pantera as at end-February 2022. This was below Fitch's 4Q21 Australian Dinkum ABS Index's 1.4% and 0.8% arrears. The Dinkum index is used as a comparison due to the similarities between the Australian and New Zealand markets. Rambler has finished its two-year revolving period and is amortising sequentially. Pantera is within its two-year revolving period, which ends in June 2023, and the receivables are subject to eligibility criteria that limits the pool's concentration in loan products, asset types and various asset characteristics. Fitch determines portfolio-specific default and recovery base-case expectations using originator-specific data, but also take into account the economic outlook as well as market and peer comparison data. The base-case default and recovery expectations have not changed since the last rating action. Base-case default expectations (and 'AAAsf' default multiples) are as follows: -- Low risk: 1.0% (7.5x) -- Medium risk: 2.7% (5.5x) -- High risk: 7.5% (4.0x) The recovery base case applied was 45.0% for all risk grades with a 50.0% 'AAAsf' recovery haircut. The Stable Outlook is supported by New Zealand's macroeconomic policy response to the Covid-19 pandemic. Fitch forecasts GDP to expand by 3.5% in 2022, with an unemployment rate of 4.3%. GDP growth should normalise to 2.9% in 2023, with an unemployment rate of 4.1%. Credit Enhancement and Structure Support Ratings: Both trusts benefit from credit enhancement provided by overcollateralisation, which has built up since closing from recoveries received after loans have been charged off. Both trusts also feature liquidity reserves - sized at 1% of the outstanding note balance - and excess-spread reserves that trap excess income during deteriorating performance. Fitch completed full cash-flow modelling in this review. Low Operational and Servicing Risk: All assets are originated by MTF, a large motor-vehicle financier established in New Zealand in 1970. Fitch undertook an operational review and found that the operations of the originator and servicer were consistent with market standards for auto and equipment lenders in New Zealand. The pandemic has not disrupted collection or servicing activity, as staff are able to work remotely and have access to the office, if needed. Rated Above Sovereign: Structured finance notes can be rated up to six notches above New Zealand's Long-Term Local-Currency Issuer Default Rating of 'AA+', supporting the 'AAAsf' rating on the class A notes. The key rating drivers listed in the applicable sector criteria, but not mentioned above, are not material to this rating action. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: Factors, actions or events that may, individually or collectively, lead to negative rating action include: -- A longer pandemic than Fitch expects that leads to deterioration in macroeconomic fundamentals and consumers' financial position in New Zealand beyond Fitch's baseline scenario. Credit enhancement cannot compensate for the higher credit losses and cash flow stresses, all else being equal. Fitch conducted sensitivity analysis by increasing gross default levels, decreasing recovery rates and decreasing residual value sales proceeds over the life of the transaction. MTF Pantera Trust 2021 -- Class A / B / C / D / E / F -- Recommended rating: AAAsf / AAsf / A+sf / A-sf / BBB-sf / BB+sf Downgrade Sensitivity: Impact on note ratings of increased defaults: -- Increase mean rating default rate by 10%: AA+sf / AA-sf / Asf / BBB+sf / BBB-sf / BB+sf -- Increase mean rating default rate by 25%: AAsf / A+sf / A-sf / BBBsf / BB+sf / BBsf -- Increase mean rating default rate by 50%: AA-sf / Asf / BBB+sf / BBB-sf / BBsf / BB-sf Impact on note ratings of decreased recoveries: -- Reduce recoveries by 10%: AA+sf / AAsf / Asf / BBB+sf / BBB-sf / BBsf -- Reduce recoveries by 25%: AA+sf / AA-sf / Asf / BBBsf / BB+sf / BBsf -- Reduce recoveries by 50%: AA+sf / A+sf / A-sf / BBBsf / BBsf / B+sf Impact on note ratings of multiple factors: -- Increase mean rating default rate by 10% and reduce recovery rate by 10%: AA+sf / AA-sf / A-sf / BBBsf / BBsf / B+sf -- Increase mean rating default rate by 25% and reduce recovery rate by 25%: AAsf / Asf / BBB+sf / BBB-sf / BBsf / B+sf -- Increase mean rating default rate by 50% and reduce recovery rate by 50%: Asf / BBB+sf / BBB-sf / BBsf / B-sf / less than Bsf MTF Rambler Trust 2019 -- Class A / B / C / D / E -- Recommended rating: AAAsf / AAsf / A+sf / A+sf / Asf Downgrade Sensitivity: Impact on note ratings of increased defaults: -- Increase mean rating default rate by 10%: AAAsf / AAsf / A+sf / A+sf / Asf -- Increase mean rating default rate by 25%: AAAsf / AAsf / A+sf / Asf / BBB+sf -- Increase mean rating default rate by 50%: AAAsf / AAsf / Asf / A-sf / BBBsf Impact on note ratings of decreased recoveries: -- Reduce recoveries by 10%: AAAsf / AAsf / A+sf / A+sf / A-sf -- Reduce recoveries by 25%: AAAsf / AAsf / A+sf / A+sf / A-sf -- Reduce recoveries by 50%: AAAsf / AAsf / A+sf / Asf / BBB+sf -- Impact on note ratings of multiple factors: -- Increase mean rating default rate by 10% and reduce recovery rate by 10%: AAAsf / AAsf / A+sf / Asf / A-sf -- Increase mean rating default rate by 25% and reduce recovery rate by 25%: AAAsf / AAsf / A+sf / A-sf / BBBsf -- Increase mean rating default rate by 50% and reduce recovery rate by 50%: AAAsf / AA-sf / A-sf / BBBsf / BB+sf Factors that could, individually or collectively, lead to positive rating action/upgrade: Factors, actions or events that may, individually or collectively, lead to positive rating action include: -- Macroeconomic conditions, collateral performance and credit losses that are better than Fitch's baseline scenario or sufficient build-up of credit enhancement that would fully compensate for the credit losses and cash flow stresses commensurate with higher rating scenarios, all else being equal. -- The class A notes are rated at 'AAAsf', which is the highest level on Fitch's scale. The ratings cannot be upgraded. The ratings of class B and C notes from both trusts are capped by the trust's exposure to transaction account bank counterparty risk. MTF Pantera Trust 2021 Upgrade Sensitivity: -- Class B / C / D / E / F -- Recommended rating: AAAsf / AAsf / A+sf / A-sf / BBB-sf / BB+sf -- Decrease defaults by 10%; increase recoveries by 10%: AAAsf / AAsf / A+sf / Asf / BBBsf / BBB-sf MTF Rambler Trust 2019 Upgrade Sensitivity: -- Class B / C / D / E -- Recommended rating: AAAsf / AAsf / A+sf / A+sf / Asf -- Decrease defaults by 10%; increase recoveries by 10%: AAAsf / AAsf / A+sf / A+sf / A+sf BEST/WORST CASE RATING SCENARIO International scale credit ratings of Structured Finance transactions have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of seven notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of seven notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings are based on historical performance. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pools and the transactions. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information or reviewed origination files as part of its ongoing monitoring. Prior to the transactions closing, Fitch sought to receive a third-party assessment conducted on the asset portfolio information, but none was made available for these transactions. As part of its ongoing monitoring, Fitch reviewed a small targeted sample of the originator's origination files and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the agency about the asset portfolio. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. TOKOTEA FRESH: Court to Hear Wind-Up Petition on May 5 ------------------------------------------------------ A petition to wind up the operations of Tokotea Fresh Limited will be heard before the High Court at Napier on May 5, 2022, at 2:15 p.m. Joanna Denise Gibson and Fiona Louise Openshaw (as trustees of the JD Gibson Trust) filed the petition against the company on June 22, 2021. The Petitioner's solicitor is: Jolyon Bates Brown & Bates Limited Level 1, 39 Tennyson Street Napier 4110 YEE GOOD: Creditors' Proofs of Debt Due on May 18 ------------------------------------------------- Creditors of Yee Good Fortune Investments Limited are required to file their proofs of debt by May 18, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on April 4, 2022. The company's liquidators are: Craig Sanson Richard Nacey PwC PO Box 243 Wellington 6140 ================= S I N G A P O R E ================= ASIATRAVEL.COM HOLDINGS: To Appeal Delisting Notice From SGX ------------------------------------------------------------ The Business Times reports that Asiatravel.com plans to appeal the delisting notification it received from the Singapore Exchange last month. Meanwhile, it has not heard back from its controlling shareholder in recent months, the company said in a April 8 bourse filing. BT relates that the online travel company, whose stock has been suspended from trading since July 2018, was hit with the delisting notification on March 9. This followed its being unable to continue as a going concern, with its auditors having issued a disclaimer of opinion, considering its net loss and negative working capital, the report says. In the delisting notification, SGX Regco noted that the company had failed to demonstrate a viable business, and that it had made aggressive assumptions for its projections of its online travel agent and events ticketing business, according to BT. BT adds that Asiatravel.com said it reached out to its controlling shareholder on March 22 and April 5 but has not received a response or exit offer. Its last correspondence with the controlling shareholder was on Aug. 15, 2021. Asiatravel.com Holdings Limited provides hotel and travel reservation services through websites on the Internet and travel offices throughout Asia. The Company also provides website membership, tours and transportation packages, and electronic-commerce, technical and consultancy services. ESS ASIAN NETWORKS: Creditors' Proofs of Debt Due on May 8 ---------------------------------------------------------- Creditors of ESS Asian Networks Pte Ltd are required to file their proofs of debt by May 8, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on April 1, 2022. The company's liquidators can be reached at: Lim Loo Khoon Tan Wei Cheong Deloitte 6 Shenton Way OUE Downtown 2, #33-00 Singapore 068809 KRISCON ENGINEERING: Court to Hear Wind-Up Petition on April 22 --------------------------------------------------------------- A petition to wind up the operations of Kriscon Engineering & Trading Pte Ltd will be heard before the High Court of Singapore on April 22, 2022, at 10:00 a.m. Maybank Singapore Limited filed the petition against the company on March 31, 2022. The Petitioner's solicitors are: Tito Isaac & Co LLP 1 North Bridge Road #30-00 High Street Centre Singapore 179094 KS ENERGY: Deloitte Appointed as Provisional Liquidators -------------------------------------------------------- Andrew Grimmett and Lim Loo Khoon of Deloitte on April 4, 2022, were appointed as provisional liquidators of KS Energy Engineering Services Pte Ltd. The provisional liquidators may be reached at: Andrew Grimmett Lim Loo Khoon Deloitte 6 Shenton Way OUE Downtown 2 #33-00 Singapore 068809 RDV REALTY: PwC Appointed as Provisional Liquidators ---------------------------------------------------- Mr. Sam Kok Weng of PricewaterhouseCoopers on March 30, 2022, were appointed as provisional liquidator of RDV Realty Pte. Ltd. The liquidators may be reached at: Sam Kok Weng PricewaterhouseCoopers 7 Straits View Marina One East Tower, Level 12 Singapore 018936 TAIGER SINGAPORE: Placed in Provisional Liquidation --------------------------------------------------- Joshua James Taylor and Chew Ee Ling of Alvarez & Marsal (SE Asia) on March 31, 2022, were appointed as provisional liquidators of Taiger Singapore Pte Ltd. The provisional liquidators may be reached at: Joshua James Taylor Chew Ee Ling Alvarez & Marsal (SE Asia) c/o Six Battery Road #16-01/02 Singapore 049909 ================= S R I L A N K A ================= SRI LANKA: Needs US$3 Billion in Few Months to Stave Off Crisis --------------------------------------------------------------- Reuters reports that Sri Lanka will need about $3 billion in external assistance within the next six months to help restore supplies of essential items, including fuel and medicines, to manage a severe economic crisis, its finance minister told Reuters on April 9. The island nation of 22 million people has been hit by prolonged power cuts, with drugs, fuel and other items running short, bringing angry protesters out on the streets and putting President Gotabaya Rajapaksa under mounting pressure, the report says. "It's a Herculean task," Finance Minister Ali Sabry said in his first interview since taking office this week, referring to finding $3 billion in bridge financing as the country readied for negotiations with the International Monetary Fund (IMF) this month. According to Reuters, the South Asian island nation will look to restructure international sovereign bonds and seek a moratorium on payments, and is confident of negotiating with bondholders for an upcoming $1 billion payment in July. "The entire effort is not to go for a hard default," the report quotes Sabry as saying. "We understand the consequences of a hard default." J.P. Morgan analysts estimated last week that Sri Lanka's gross debt servicing would amount to $7 billion this year, with the current account deficit coming in around $3 billion, Reuters notes. The country has $12.55 billion in outstanding international sovereign bonds, according to central bank data, and foreign reserves of $1.93 billion at the end of March, Reuters discloses. "The first priority is to see that we get back to the normal supply channel in terms of fuel, gas, drugs . . . and thereby electricity so that the people's uprising can be addressed," Sabry said. Reuters says anti-government protests have raged across the island for days, with at least one turning violent in the country's commercial capital of Colombo, which have hurt the lucrative tourism industry that was ravaged by the COVID-19 pandemic. "We respect your right to protest, but no violence, because it is counterproductive," Sabry told Reuters. "Our tourism, which was beautifully coming back in February with 140,000 tourists coming in, has been severely affected ever since the demonstrations." Reuters relates that Sabry said he will lead a delegation of Sri Lankan officials to Washington to start talks with the IMF on April 18 and that financial and legal advisers would be selected within 21 days to help the government restructure its international debt. "Once we go to them, first thing is there is a sense of confidence in the entire international monetary community that we are serious," he said. "We are transparent, we are willing to engage." On April 8, a new central bank governor raised interest rates by an unprecedented 700 basis points in a bid to tame rocketing inflation and stabilise the economy, Reuters reports. Sri Lankan authorities will also reach out to rating agencies, Sabry said, as the country looks to regain access to international financial markets after being locked out due to multiple ratings downgrades since 2020, Reuters relays. According to Reuters, Sabry said the government will hike taxes and fuel prices within six months and seek to reform loss-making state-owned enterprises, in an effort to fix public finances. These measures were among key recommendations in an IMF review of Sri Lanka's economy released in early March. "These are very unpopular measures, but these are things we need to do for the country to come out of this," Sabry said. "But the choice is do you do that or do you go down the drain permanently?" Sri Lanka will seek another $500 million credit line from India for fuel, which would suffice for about five weeks of requirements, Sabry said, relays Reuters. The government would also look for support from the Asian Development Bank, the World Bank and bilateral partners including China, the United States, Britain and countries in the Middle East, Reuters adds. "We know where we are, and the only thing is to fight back," Sabry said, looking relaxed in a blue T-shirt and jeans. "We have no choice." Discussions are ongoing with China on a $1.5 billion credit line, a syndicated loan of up to $1 billion dollars and a request from Sri Lanka's president in January to restructure some debt, Reuters adds. "Hopefully we will be able to get some relief and which would help to keep the Sri Lanka community and the country afloat until larger infusions come in," Sabry said. ============= V I E T N A M ============= BIM LAND: Fitch Affirms 'B' LongTerm IDR, Outlook Stable -------------------------------------------------------- Fitch Ratings has affirmed Vietnam-based property developer BIM Land Joint Stock Company's (BIML) Long-Term Issuer Default Rating (IDR) at 'B'. The Outlook is Stable. At the same time, the agency has affirmed the 'B' long-term rating and Recovery Rating of 'RR4' on BIML's US dollar unsecured unsubordinated notes due in May 2026. The affirmation of BIML's ratings reflect Fitch's expectations that contracted sales will rise in the next 12-18 months aided by a strong launch pipeline and improving demand, while the company will maintain a similar financial profile. The easing of Covid-19 movement curbs as Vietnam shifts its approach to living with the coronavirus supports a rebound in economic activity, and demand for tourism-led properties. The rating is nonetheless constrained by the company's smaller scale, based on contracted sales, than higher-rated peers. Fitch has also revised BIML's rating sensitivities to be in line with those of rated peers. KEY RATING DRIVERS Steady Presales, Cash Collections: Fitch projects BIML's attributable contracted sales (excluding minorities' share) to rise to VND9 trillion-10 trillion a year in 2022-2023, from an estimated VND8.1 trillion in 2021. BIML's sales in 2021 were steady despite the difficult operating environment. Cash collections from presales fell because the company allowed customers to pay lower installments in the first 6-12 months after the sale. Cash collections should improve in 2022 in line with a rise in contracted sales, and from higher installments on homes presold in 2021. Higher Inflation, Interest Rates: Fitch believes rising inflation and interest rates in the next 12-18 months will temper growth in BIML's contracted sales. Rising interest rates may hamper growth in mortgage-loan funded sales, which made up 32% of 9M21 contracted sales, but a recovery in demand amid fewer expected pandemic-led disruptions and a gradual resumption in international travel should counterbalance this. BIML's properties are in the mid- to high-end, which appeal to upgraders and investors, and they are seen as an inflation hedge and store of value. Economic Growth to Rebound: Faster economic growth will support demand for BIML's properties. Fitch expects Vietnam's GDP growth to accelerate to 6.1% in 2022 and 6.3% in 2023 from 2.6% in 2021. Measures to control a surge in Covid-19 cases caused GDP to contract in 3Q21, but economic activity resumed in 4Q21 as the authorities switched to a more flexible approach to the pandemic, made possible by high vaccination rates. Significant Exposure to Tourism-Property: Condotels and rental-villas will account for 30%-40% of BIML's contracted sales over the next three years. Demand for these products was steady in the past two years and Fitch expects it to remain healthy as Vietnam resumed quarantine-free travel for vaccinated visitors from March 2022. However, Fitch considers demand for tourism-centric properties to be more cyclical than residential property, and this is reflected in tighter leverage sensitivities for BIML versus residential developers. Limited Non-Development Cashflows: Fitch expects operating cash flows from hotels and rental condotels/villas to remain slightly negative in 2022-2023 before turning positive from 2024. Fitch believes Vietnam's tourism industry will recover gradually, but do not expect tourist arrivals to recover to pre-pandemic levels until 2023-2024. The occupancy rate of BIML's hotels fell to 21% in 2021, from 29% in 2020 and 51% in 2019. Fitch expects occupancy to recover to around 30% in 2022, and 40%-50% in 2023-2024. Tourism Capex and Land Banking: Fitch estimates BIML's capex to remain high at around VND1 trillion a year to expand its hotels and rental villas and condotels. BIML expects the number of hotel and condotel rooms to more than double to over 3,600 in 2024 from 1,500 in 2021. As of end-2021, BIML had sufficient paid-up land to support around 7-10 years of contracted sales, following the payments of around VND2.6 trillion in aggregate for the land plot in its Vinh Phuc township, as well as additional land payments in its Ha Long township. Fitch forecasts the company will spend around VND1 trillion opportunistically on acquisitions of smaller plots to support longer-term growth. BIML's cash flow from operations (CFFO) temporarily turned negative in 2021 due to the unusually large land purchases. Fitch forecasts free cash flow (FCF) to improve to a neutral level in the next 12-18 months as land bank costs moderate, and Fitch expects leverage, defined as net debt / net property assets, to remain at around 30% (2021 estimate: 24%) Concentrated Cash Flows: BIML's contracted sales stem mainly from Ha Long and Phu Quoc, while Vinh Phuc will contribute meaningfully from 2023. Its Ha Long Marina township is mature and offers residential and tourism-led products, and is in Quang Ninh province, which benefits from strong economic growth and industrialisation. The Phu Quoc and Vinh Phuc townships are less established, with Phu Quoc having mostly tourism properties, although the company is in the process of obtaining re-zoning approval to increase residential properties for sale. Linkages with Parent: BIML is wholly owned by BIM Group, which is owned by Chairman Doan Quoc Viet. His family holds key positions in all group companies, including BIML, BIM Energy Holding JSC and BIML's lifestyle- and food processing affiliates. Fitch excludes the ring-fenced and self-sufficient BIM Energy from BIM Group's financials in Fitch's assessment of the parent's standalone credit profile (SCP). There is limited net debt of around VND430 billion in the lifestyle and food businesses, which Fitch includes in BIML's leverage. BIM Group's SCP is similar to BIML's credit profile and does not affect BIML's rating. DERIVATION SUMMARY BIML's ratings are comparable with those on Vietnamese real estate players Dat Xanh Group Joint Stock Company (DXG, B/Stable) and Phat Dat Real Estate Development Corp (PDR, B/Stable), as well as Indonesian property developers PT Ciputra Development Tbk (CTRA, B+/Positive), and PT Lippo Karawaci Tbk (LPKR, B-/Stable). BIML, DXG and PDR are rated at the same level. Fitch expects PDR to record larger annual contracted sales of VND10 trillion-20 trillion in 2021-2023 stemming from its better geographical diversification compared to BIML. BIML has a track record of faster cash collection with higher margins from selling to retail buyers, compared to PDR's wholesale model. PDR also has higher execution risk related to sustaining its current scale as it grew rapidly in the last two years. Hence, both companies are rated at the same level. DXG's residential real-estate development provides greater cash flow stability than BIML's portfolio, which contains substantial tourism-related properties. DXG's brokerage business also offers more geographically diverse revenue streams compared with BIML's exposure to two main townships in Ha Long and Phu Quoc. However, this is offset by the large working-capital needs of DXG's brokerage business, which, together with significant land acquisitions, drains its CFFO during periods of high growth. In contrast, BIML has a record of maintaining positive CFFO and its land bank is mostly pre-paid. Both companies are likely to maintain leverage (defined as net debt/net property assets) at 30%-40% in the next two years. CTRA is rated higher than BIML given its stronger business risk profile. CTRA's contracted sales are more widespread across numerous regions in Indonesia and its housing products are more diverse across price-points and end-customers. CTRA's contracted sales are entirely from residential properties and it has demonstrated its ability to shift its product mix to cater to varying demand patterns. CTRA also has a larger recurring-income portfolio that provides it with more financial flexibility. Although BIML has lower leverage than CTRA, this alone is not sufficient to offset its weaker business risk profile. The Positive Outlook on CTRA reflects the possibility that the company could sustain higher presales over the medium term, which could lead to an upgrade. Lippo is rated lower than BIML on account of its weaker business risk profile with negative FCF before land acquisitions, and higher leverage. Fitch expects Lippo may face challenges in achieving neutral FCF in the next 12-18 months due to inflationary pressures on construction costs. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: -- Attributable contracted sales of around VND8.1 trillion in 2021 and VND8.6 trillion in 2022; -- CFFO of -VND1.8 trillion in 2021 and +VND721 billion in 2022; -- Capex of VND1.8 trillion in 2021 and VND1.5 trillion in 2022 on non-development income projects; -- Dividends of VND585 billion in 2021 and VND600 trillion in 2022. Key Recovery Rating Assumptions Fitch assumes BIML will be liquidated in a bankruptcy rather than continue as a going concern, because it is an asset-trading company. In order to estimate BIML's liquidation value Fitch assumed a 75% advance rate against account receivables, 50% advance rate against fixed assets and adjusted inventory (which includes value of inventories and investment properties net of customer advances). Fitch has excluded the purchase price of Vinh Phuc land of around VND1 trillion to account for the Vinh Phuc project, which is not a guarantor of the US dollar bonds. Based on the above calculation of the adjusted liquidation value after administrative claims, Fitch estimates the Recovery Rating of the senior unsecured bonds at 100%, which corresponds to a Recovery Rating of 'RR1'. However, Fitch has rated the senior unsecured bonds 'B'/'RR4' because Vietnam falls into Group D of creditor-friendliness under Fitch's Country-Specific Treatment of Recovery Ratings Criteria and the instrument ratings of issuers with assets in this group are subject to a soft cap at the company's IDR and Recovery Rating of 'RR4'. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- The lower of attributable contracted sales or implied cash collections from contracted sales sustained above VND12 trillion (about USD500 million); -- Net debt/ net property assets sustained below 35%. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- The lower of attributable contracted sales or implied cash collections falling below VND4 trillion (about USD180 million) on a sustained basis; -- Net debt / net property assets of above 45% for a sustained period. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. LIQUIDITY AND DEBT STRUCTURE Sufficient Liquidity: As of 30 September 2021, BIML had VND3.9 trillion of cash and equivalents (including VND2.8 trillion in time deposits maturing in less than 12 months) and VND500 billion in undrawn committed working-capital lines subject to a 12-month renewal cycle. The near-term maturities include short-term working-capital funding of VND234 billion, which Fitch expects will be rolled over by lenders over the normal course of business. The available facilities and cash balance are sufficient to cover Fitch-projected negative FCF of VND2.2 trillion in the 12 months to 30 September 2022. The company has access to all major domestic banks as well as several cross-border institutions including the International Finance Corporation. BIML's inaugural domestic secured bond of VND1 trillion raised on 15 March 2021 as well as inaugural international unsecured note of USD200 million issued on 7 May 2021 further diversified its funding sources. ISSUER PROFILE BIML has a land bank of more than 550 hectares, mainly in Ha Long, Phu Quoc and Vinh Phuc, which is sufficient for more than 10 years of development. The company also has investment properties, comprising serviced apartments and hotels operated by international brands such as InterContinental Hotels & Resorts and Regent Hotels & Resorts. SUMMARY OF FINANCIAL ADJUSTMENTS BIML reports undeveloped land bank at fair market value in line with International Financial Reporting Standards. However in order to arrive at a net debt/net property assets ratio based on carrying cost of land to be more comparable with regional peers, and in light of the wide leeway available in arriving at assumptions on price-growth and sales volumes incorporated in a typical fair-value assessment of bare land, Fitch reduces the reported fair value of BIML's adjusted inventory by the average of the last two years' gross profit margin on property sales, to arrive at an estimated land cost. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman, Editors. Copyright 2022. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. *** End of Transmission ***