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T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, July 28, 2022, Vol. 25, No. 144
Headlines
A U S T R A L I A
CAYDON PROPERTY: First Creditors' Meeting Set for Aug. 8
CAYDON PROPERTY: Nylex Site Among Assets Seized by Receivers
CAYDON PROPERTY: Part of Group Placed Into Liquidation
CHELSEA COSMETICS: First Creditors' Meeting Set for Aug. 5
CHRISTINA FITZGERALD: First Creditors' Meeting Set for Aug. 8
FIRSTMAC MORTGAGE 4: S&P Rates Class E Debt on Eagle 2 Series 'BB+
PROGRESS TRUST 2020-1: S&P Raises Class E Notes Rating to BB+
WILUNA MINING: Investors to Get Answers on Aug. 1 After Collapse
XIN AU: First Creditors' Meeting Set for Aug. 5
C H I N A
GEMDALE CORP: S&P Affirms 'BB' LT ICR & Alters Outlook to Negative
SEAZEN GROUP: Moody's Cuts CFR to Ba3 & Alters Outlook to Negative
TSINGHUA UNIGROUP: Former Chief Falls Under Investigation
I N D I A
AMBOOTIA TEA: CRISIL Keeps D Debt Ratings in Not Cooperating
ANNAPURNA COTTON: CARE Lowers Rating on INR6cr LT Loan to B-
ASEAN AGENCIES: CARE Lowers Rating on INR9cr LT Loan to B
ASHISH BUILDERS: ICRA Keeps B+ Debt Rating in Not Cooperating
AVEENA MILK: CARE Keeps B- Debt Rating in Not Cooperating Category
BEE PEE: CARE Keeps B+ Debt Rating in Not Cooperating Category
BHAGIRATH DHANNALAL: CARE Keeps B- Debt Rating in Not Cooperating
CAPITOL HILL: CRISIL Keeps D Debt Ratings in Not Cooperating
FREEZE ENGINEERING: CRISIL Keeps C Ratings in Not Cooperating
FUTURE GROUP: 3 Group Firms to File Claims Before IRP
GN POULTRY: CARE Keeps B- Debt Rating in Not Cooperating Category
GOODEARTH MARITIME: ICRA Keeps D Debt Rating in Not Cooperating
GREEN WOOD: CARE Keeps B- Debt Rating in Not Cooperating Category
HARESH OVERSEAS: ICRA Upgrades Rating on INR5.0cr Loan to B+
HIMALAYA COMMUNICATIONS: ICRA Keeps B+ Ratings in Not Cooperating
HITECH CELLPHONE: ICRA Keeps B+ Debt Ratings in Not Cooperating
HONEY JEWELLERY: CARE Keeps B- Debt Rating in Not Cooperating
HYPNOTIK CLOTHING: CRISIL Keeps D Debt Rating in Not Cooperating
JATIN AND COMPANY: CARE Lowers Rating on INR0.68cr LT Loan to B-
JEPPIAAR POWER: ICRA Keeps D Debt Rating in Not Cooperating
LAMPEX ELECTRONICS: ICRA Keeps B+ Debt Rating in Not Cooperating
MAHAPRABHU RESIDENCY: CARE Moves B+ Debt Rating to Not Cooperating
MANIKYAM POULTRY: CARE Keeps D Debt Rating in Not Cooperating
MARKS ENGINEERING: ICRA Keeps B+ Debt Ratings in Not Cooperating
OM COTTEX: CARE Keeps D Debt Rating in Not Cooperating Category
OM SHIVASHAKTHI: CARE Keeps C Debt Rating in Not Cooperating
POOJA ASSOCIATE: CARE Lowers Rating on INR2CR LT Loan to B-
PTG TECHNOPAK: ICRA Reaffirms B+ Rating on INR5.85cr Cash Loan
R.N. FOODS: CARE Assigns B+ Rating to INR7.30cr LT Loan
RADIANT INDUSTRIES: CARE Lowers Rating on INR3.48cr LT Loan to B
RAJIB CASHEW: CARE Lowers Rating on INR14.24cr LT Loan to C
RAM INDUSTRIES: CARE Lowers Rating on INR9.0cr LT Loan to B-
REDDY AND REDDY: CARE Keeps B- Debt Rating in Not Cooperating
RELIANCE BROADCAST: CARE Moves D Debt Rating to Not Cooperating
SHIRPUR GOLD: CARE Keeps D Debt Ratings in Not Cooperating
SUNSHINE CONVEYORS: ICRA Keeps B Debt Rating in Not Cooperating
TIRUPATI TRADING: CARE Keeps B- Debt Rating in Not Cooperating
VIJAYSHREE ELECTROMECH: ICRA Keeps B+ Rating in Not Cooperating
N E W Z E A L A N D
BASELINE CIVIL: Court to Hear Wind-Up Petition on Aug. 4
C & L TEDDY: Creditors' Proofs of Debt Due on Aug. 26
GENETIC DEVELOPMENT: Court to Hear Wind-Up Petition on Sept. 5
HK CUISINE: Creditors' Proofs of Debt Due on Sept. 22
KOVA LIMITED: Creditors' Proofs of Debt Due on Aug. 26
YABONZA GROUP: First Creditors' Meeting Set for Aug. 5
P A K I S T A N
[*] PAKISTAN: Small Auto Parts Makers Go Bankrupt
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A U S T R A L I A
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CAYDON PROPERTY: First Creditors' Meeting Set for Aug. 8
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A first meeting of the creditors in the proceedings of Caydon
Property Group Pty Ltd will be held on Aug. 8, 2022, at 10:30 a.m.
via virtual meeting.
Malcolm Kimbal Howell of Jirsch Sutherland was appointed as
administrator of the company on July 26, 2022.
CAYDON PROPERTY: Nylex Site Among Assets Seized by Receivers
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Australian Financial Review reports that receivers acting on behalf
of Asia-based non-bank lender OCP will have at least $150 million
of assets they could potentially sell as they look to recoup
funding provided to collapsed developer Caydon, after seizing
control of the prized Nylex silo site and about 100 unsold
apartments.
Due to house a 30,000-square metre office development,
micro-brewery and 200-room hotel, the 1.3 hectare Nylex site with
its famous clock atop concrete silos was the second stage in
Caydon's $1 billion Malt District. The first stage featured a
AUD100 million office building leased to MYOB and bought by AXA in
2018 and a completed residential tower.
With estimated land value of AUD90 million, the undeveloped site
including the historic malting silos was being marketed by Cushman
& Wakefield in March this year, as cash-strapped Caydon sought a
capital partner to complete the AUD450 million development,
according to AFR.
Also in the hands of receivers McGrathNicol are about 100 unsold
apartments from previous Caydon projects, which could be worth
AUD50 million to AUD60 million, AFR says.
It is expected that OCP will look to divest these assets at some
stage to recoup the loans it provided to Caydon, after founder Joe
Russo appointed a liquidator over more than two dozen companies in
the group this week.
OCP, which also provided loans to another failed developer,
Steller, has not revealed how much money it lent to Caydon.
Property searches carried out by The Australian Financial Review
revealed prominent Melbourne non-bank lender CVS Lane, which is
backed by the Liberman family and has former prime minister Julia
Gillard on its board, provided mortgages to Mr. Russo to buy
development sites on Harris Street in Parramatta and at Burleigh
Heads on the Gold Coast. These sites are held by Caydon entities
not in the hands of liquidators or receivers.
On July 26, Mr. Russo, a former Melbourne cab driver who got his
start in property development after selling his taxi licence for
AUD120,000, blamed "accelerating construction cost pressures,
supply chain interruptions, and interest rate pressures" for the
decision to put part of Caydon's Australian business in
liquidation.
The head company, Caydon Property Group, which employs staff, is in
voluntary administration following the appointment on July 25 of
Malcolm Howell of Jirsch Sutherland, AFR discloses. Mr. Howell was
also appointed liquidator of 27 Caydon entities by Mr. Russo.
Following these actions, OCP appointed Matthew Hutton and Matthew
Caddy from McGrathNicol as receivers and managers over parts of
Caydon Group that held assets over which the Hong Kong-based lender
held mortgage security, according to AFR.
In addition to the Nylex site and unsold apartment stock, over
which OCP has direct security, OCP also has an indirect equity
interest in other Caydon projects, including a development site in
San Diego and a 350-unit apartment building in Houston, AFR notes.
AFR relates that OCP also has a shareholding in the entity running
Caydon's under-construction residential projects in Alphington and
Preston, which are fully funded and will be completed. OCP does not
have any direct or indirect interest in these underlying
properties.
HOME at Alphington, which has about 300 apartments, is due for
completion at the end of next month while Due North in Preston,
which has about 100 apartments, is due for completion in March.
AFR adds that the collapse of Caydon follows Mr. Russo warning last
month that building costs had increased 45% in the past eight to 12
months. However, he said Caydon had "addressed these issues with a
cool-headed approach".
CAYDON PROPERTY: Part of Group Placed Into Liquidation
------------------------------------------------------
9news.com.au reports that part of major property developer Caydon
Property Group has collapsed and been placed into liquidation.
According to the report, the company said it has been dealt one
difficult market situation after another, pointing the finger at
prolonged COVID-19 lockdowns in Melbourne and accelerating
construction cost pressures.
9news.com.au relates that the property group is currently
developing a commercial precinct at the site of the old Nylex silos
in Melbourne, but said two other projects – Home in Alphington
and Due North in Preston – will not be affected by the collapse.
Managing director Joe Russo said going into liquidation was an
"extremely difficult" decision to make, the report relays.
"The latest and really confronting challenge we've been facing has
been the pricing factors affecting the Australian property and
construction industry," the report quotes Mr. Russo as saying.
"The significant disruption to our business created by two years of
COVID-19 lockdowns in Melbourne has caused business uncertainty and
severely impacted sales.
"Pressure on construction costs resulting in builder insolvencies
and supply chain interruptions, and now the interest rate pressures
and negative house price sentiment has placed additional pressure
on our operations."
Purchasers of Caydon's properties have been advised that their
current contractual arrangements should not be impacted by the
company going into liquidation, the report adds.
CHELSEA COSMETICS: First Creditors' Meeting Set for Aug. 5
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A first meeting of the creditors in the proceedings of Chelsea
Cosmetics Pty Ltd will be held on Aug. 5, 2022, at 10:00 a.m. via
virtual meeting.
Manuel Hanna and Renee Di Carlo of Romanis Cant were appointed as
administrators of the company on July 26, 2022.
CHRISTINA FITZGERALD: First Creditors' Meeting Set for Aug. 8
-------------------------------------------------------------
A first meeting of the creditors in the proceedings of Christina
Fitzgerald Pty Ltd will be held on Aug. 8, 2022, at 11:00 a.m. via
virtual meeting only.
Philip Raymond Hosking of Helm Advisory wase appointed as
administrator of the company on July 27, 2022.
FIRSTMAC MORTGAGE 4: S&P Rates Class E Debt on Eagle 2 Series 'BB+
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S&P Global Ratings assigned ratings to six of the seven classes of
prime residential mortgage-backed securities (RMBS) issued by
Firstmac Fiduciary Services Pty Ltd. as trustee for Firstmac
Mortgage Funding Trust No.4 Series Eagle No.2.
The ratings reflect the following factors.
The credit risk of the underlying collateral portfolio and the
credit support provided to each class of notes are commensurate
with the ratings assigned. Credit support for the rated notes is
provided by subordination and excess spread. The credit support
provided to the rated notes is sufficient to cover the assumed
losses at the applicable rating stress. S&P's assessment of credit
risk takes into account Firstmac Ltd.'s underwriting standards and
approval processes, which are consistent with industry-wide
practices, and the strong servicing quality of Firstmac.
The rated notes can meet timely payment of interest--excluding the
residual interest due on the class B, class C, class D, and class E
notes--and ultimate payment of principal under the rating stresses.
Key rating factors are the level of subordination provided, the
liquidity reserve, the principal draw function, 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 by their
legal final maturity date, and it does not assume the notes are
called at or beyond the call date.
S&P's ratings also take into account the counterparty exposure to
Westpac Banking Corp. as bank account provider and National
Australia Bank Ltd. (NAB) as interest-rate swap provider. NAB
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.
S&P also has factored into its ratings the legal structure of the
trust, which is established as a special-purpose entity and meets
its criteria for insolvency remoteness.
Ratings Assigned
Firstmac Mortgage Funding Trust No.4 Series Eagle No.2
Class A-1, A$160.00 million: AAA (sf)
Class A-2, A$24.00 million: AAA (sf)
Class B, A$6.00 million: AA+ (sf)
Class C, A$4.00 million: A+ (sf)
Class D, A$2.00 million: A- (sf)
Class E, A$2.00 million: BB+ (sf)
Class F, A$2.00 million: Not rated
PROGRESS TRUST 2020-1: S&P Raises Class E Notes Rating to BB+
-------------------------------------------------------------
S&P Global Ratings raised its ratings on four classes of notes
issued by Perpetual Trustee Co. Ltd. as trustee of Progress 2020-1
Trust. At the same time, S&P affirmed its ratings on two classes of
notes issued out of the same trust.
S&P said, "The rating actions reflect the increased credit support
to the notes and our view of the credit risk of the underlying
collateral portfolio, which has been amortizing in line with our
expectations, decreasing the expected loss. The current
loan-to-value (LTV) ratio for the pool has decreased as principal
has been repaid. As of April 30, 2022, the pool has a current
weighted-average LTV ratio of 62.5%, weighted-average seasoning of
53.7 months, and pool factor of about 52%. Loans that are more than
30 days in arrears comprise 0.49% of the pool, of which 0.28% is
more than 90 days in arrears. There have been no losses to date for
the portfolio.
"We believe that the credit support provided to each class of notes
is sufficient to withstand the stresses we apply at each respective
rating level. Credit support comprises subordination from junior
notes and lenders' mortgage insurance on 52.0% of the portfolio.
"We have limited the rating upgrades on the class D and class E
notes below a level that models alone support. We view the credit
support provided to both classes of notes at their revised rating
levels as sufficient to mitigate any potential weakening of
performance due to expected interest rate increases.
"We expect that the various mechanisms to support liquidity within
the transaction, including an amortizing liquidity reserve and the
trapping of excess spread following the call-option date, are
sufficient under our cash-flow stress assumptions to ensure timely
payment of interest for each class of notes at its respective
rating level."
Ratings Raised
Progress 2020-1 Trust
Class B: to AAA (sf) from AA (sf)
Class C: to AA (sf) from A (sf)
Class D: to A (sf) from BBB (sf)
Class E: to BB+ (sf) from BB (sf)
Ratings Affirmed
Progress 2020-1 Trust
Class A: AAA (sf)
Class AB: AAA (sf)
WILUNA MINING: Investors to Get Answers on Aug. 1 After Collapse
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ShareCafe reports that investors in Wiluna Mining hope to start
getting answers on Aug. 1 as to why their company suddenly
collapsed late last week and went into administration.
The Administrators from FTI Consulting have to provide a first
report to creditors eight days after being appointed, which would
be August 1.
Since the collapse and appointment of administrators there have
been no answers as to why a company that had just raised more than
AUD60 million to fund a revamp of the area in WA where Wiluna has
been exploring, suddenly collapsed and was placed into
administration, ShareCafe says.
According to ShareCafe, Wiluna became the first listed resources
company to collapse thanks to the surge in inflation and costs,
Covid infections, labour shortages and the supply chain constraints
that are impacting all areas of business.
Some shareholders would like to know if that was the case and if
the full AUD60 million raised was in the company's accounts.
Wiluna announced the appointment of FTI Consulting as
administrators on July 25 despite the millions raised from
shareholders and a change of management at the start of July,
ShareCafe discloses.
ShareCafe relates that the administrators said they intend to
continue operating Wiluna Mining on a 'business as usual' basis
while reviewing operating and recapitalisation options.
They said they will work closely with Wiluna Mining employees,
suppliers, secured lenders and customers to quickly stabilise
operations and preserve value for stakeholders.
According to ShareCafe, the administrators told the ASX in a
statement that they had been advised by management that due to the
impact of increasing cost pressures, tightening terms of creditor
payments, the impact of COVID on staff availability, project
ramp-up issues and worldwide shipping constraints, the company had
had insufficient working capital to carry out its reset mine plan.
Wiluna Mining had investigated ways of improving that cash by
getting financial accommodation from creditors and shareholders,
but directors said it became apparent that those options would not
successfully address the cash flow shortfall in the time needed.
But some investors apparently would like to see a timeline of
events to see if these problems were evident as the company raised
AUD63 million in May and June, ShareCafe relays.
Wiluna ran a capital raising in May and early June aimed at raising
between AUD50 million and AUD84.5 million from shareholders,
recalls ShareCafe. That was raised at 40 cents a share. The shares
ended at 20.5 cents, so the company's problems were in the market.
It managed to raise AUD60 million and it looked like that would be
enough to allow the company to reset plans to mine the 5.5 million
ounces in the area in the WA goldfields.
This was the latest fund raising by a company that has spent an
estimated AUD750 million in a decade exploring and mining for gold,
ShareCafe notes.
About Wiluna Mining
Based in West Perth, Australia, Wiluna Mining Corporation Limited
-- https://www.wilunamining.com.au/ -- explores for and develops
gold properties. It holds a 100% interest in the Matilda-Wiluna
property located in Australia.
Daniel Hillston Woodhouse, Michael Joseph Ryan, Kathryn Guinivere
Warwick and Ian Charles Francis of FTI Consulting were appointed as
administrators of Wiluna Mining Corporation Limited; Wiluna
Operations Pty Ltd; Wiluna Gold Pty Ltd; Kimba Resources Pty Ltd;
Zanthus Energy Pty Ltd; Lignite Pty Ltd; and Scaddan Energy Pty Ltd
on July 20, 2022.
XIN AU: First Creditors' Meeting Set for Aug. 5
-----------------------------------------------
A first meeting of the creditors in the proceedings of Xin Au Pty
Ltd, trading as Dumpling Land, will be held on Aug. 5, 2022, at
10:00 a.m. via virtual meeting.
Michael Hogan and Brendan Copeland of HoganSprowles were appointed
as administrators of the company on July 26, 2022.
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C H I N A
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GEMDALE CORP: S&P Affirms 'BB' LT ICR & Alters Outlook to Negative
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S&P Global Ratings, on July 26, 2022, revised its outlook on
Gemdale Corp and its subsidiary Famous Commercial Ltd. to negative
from stable. At the same time, S&P affirmed its 'BB' long-term
issuer credit rating on Gemdale and 'BB-' long-term issuer credit
rating on Famous Commercial.
The negative outlook reflects the risk that Gemdale's contracted
sales and EBITDA will continue to decline, which could drive up its
leverage to more than 5.0x in the next 12-18 months.
S&P said, "We revised the outlook to negative from stable because
we expect Gemdale's contracted sales to remain weak amid compressed
margins, leading to lower EBITDA and a rise in leverage toward
5.0x. in 2023. We forecast the company's contracted sales will
decline by 20%-25% in 2022 and a further 3%-5% in 2023 amid weak
homebuyer confidence. This will lead to revenue declining by 7%-10%
annually during 2023-2024. In the first half of 2022, Gemdale
recorded total contracted sales of Chinese renminbi (RMB) 100.6
billion--a decrease of 38% year on year.
"We project Gemdale's leverage will remain elevated at 4.7x-5.2x
during 2023-2024. In 2021, Gemdale's gross margin dropped
significantly to 21% from 33% in 2020 due to rising land cost and
measures to boost sales. As a result, the company's leverage rose
sharply to 5.3x from 3.3x over the period. We expect the company's
leverage will temporarily improve to 4.4x-4.6x in 2022 due to
substantially lower land spending.
"We believe Gemdale can effectively control its debt growth in
2022-2023 because it has an abundant land reserve.We estimate the
company's attributable land investment fell sharply by 70%-90% year
on year in the first half of 2022. Such prudent land investment
strategy is supported by Gemdale's sufficient land bank, which can
sustain future development for at least four years. We see no
imminent need for the developer to replenish its land bank. We
therefore forecast the ratio of Gemdale's total land premium to
total contracted sales will remain at 25%-30% in 2022-2023,
compared with 46% in 2021, before rebounding to 38%-42% in 2024.
"Given Gemdale's focus on higher-tier cities, we expect the
company's sales performance will continue to outperform the
industry average in 2022.62% of the land bank was located in tier-1
and tier-2 cities, in terms of gross floor area, especially in
Yangtze River Delta region. Gemdale's contracted sales performance
during the first half of 2022 was better than the industry average
(decline of about 50% year on year).
"Gemdale's liquidity will remain adequate, supported by its
centralized cash management policy and solid banking relationships.
The company has been effectively adopting a centralized cash
management policy. This is indicated by its abundant cash holdings
at the parent company level, reaching 40%-45% of total consolidated
cash over the past three years. With this track record, we now
assume 50% of its cash will be accessible in our adjusted debt
calculation, versus 25% in prior years.
"Additionally, Gemdale's solid banking relationship remained
intact, in our view. The company managed to increase its bank
borrowings in the first half of 2022 amid more difficult capital
market access for Chinese developers. As at end-2021, 52.99% of its
consolidated total debt was from banks, and 44.07% was from capital
markets. Gemdale's alternative financing exposure is minimal at
2.94%.
"However, Gemdale's high exposure to unconsolidated JV projects
lowers financial transparency and increases operational risks.The
company has been participating extensively in JV projects to share
the financial burden and help in entering new markets. This is
mainly due to the developer's high exposure in top-tier cities,
where land premium is higher and competition is more fierce. High
exposure to JV projects will increase execution risks, in our view,
particularly during an industry downturn. This is because weaker JV
partners may drag liquidity resources from Gemdale and slow
construction progress. That said, we believe the company's sales
exposure to projects with distressed partners requiring further
investment is less than 3% of Gemdale's attributable contracted
sales in 2021.
"The negative outlook reflects our view that Gemdale's contracted
sales will stay weak and margins will remain at a compressed level
over the next 12-18 months. We estimate the company's consolidated
leverage will stay at 4.4x-4.8x over the next 12-18 months.
"The negative outlook on Famous Commercial, a wholly owned offshore
operating and financing platform of Gemdale, reflects the outlook
on the parent and our view that Famous will remain a highly
strategic subsidiary of Gemdale over the next 12-18 months.
"We could lower the rating if Gemdale's leverage substantially
deteriorates, such that the consolidated debt-to-EBITDA ratio
exceeds 5.0x for an extended period. Weaker contracted sales than
we expect, a significant increase in debt-funded land investments,
and further margins narrowing in 2022-2023 below our projection
could lead to a leverage above 5.0x. Leverage could also increase
if Gemdale faces significant project delays that hurt its project
delivery and revenue booking.
"We may lower the rating on Famous Commercial if we downgrade
Gemdale.
"We could also lower the rating on Famous Commercial if: (1) we
believe the company's strategic importance to Gemdale has
diminished because of a change in the parent's strategy; or (2)
Gemdale's control and supervision over the subsidiary weaken.
"We could revise the outlook back to stable if Gemdale can achieve
a strong sales recovery in the next 12-18 months. We may also
upgrade the company if its margins rebound strongly, which we view
as an unlikely development, while it maintains good financial
discipline. A consolidated debt-to-EBITDA ratio comfortably below
5.0x in 2022-2023 would indicate this.
"We could revise the outlook on Famous Commercial back to stable if
we were to take the same action on its parent Gemdale. We could
upgrade Famous Commercial if its contribution to the group becomes
more significant, such that we assess it as a core subsidiary."
ESG credit indicators: E-3 S-2 G-2
S&P said, "Environmental factors are a moderately negative
consideration in our credit rating analysis of Gemdale. The company
faces environmental risk comparable to that of its industry peers.
Social and governance factors are an overall neutral consideration
in our rating analysis. The listed company has a diversified
ownership structure with limited influence from any single
shareholder compared with other privately owned peers, and a team
of professional executives with a lengthy track record manage it."
SEAZEN GROUP: Moody's Cuts CFR to Ba3 & Alters Outlook to Negative
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Moody's Investors Service has downgraded to Ba3 from Ba2 Seazen
Group Limited's corporate family rating and to B1 from Ba3 the
backed senior unsecured rating on the bonds guaranteed by Seazen
Group and issued by New Metro Global Limited.
Moody's has also downgraded to Ba3 from Ba2 the backed senior
unsecured rating on the bonds guaranteed by Seazen Holdings Co.,
Ltd. (Seazen Holdings) and issued by New Metro Global Limited.
Moody's has changed all the rating outlooks to negative from
ratings under review.
At the same time, Moody's has withdrawn Seazen Holdings' CFR
because Seazen Holdings accounts for the majority of Seazen Group's
operations, and its credit quality has already been reflected in
Seazen Group's Ba3 CFR. The rating and outlook of Seazen Holdings
was Ba2 and ratings under review before the withdraw.
Seazen Group operates mainly through Seazen Holdings, its 67%-owned
subsidiary, which accounts for 99% of Seazen Group's revenue and
total assets.
This concludes the review for downgrade initiated on May 13, 2022.
"The rating downgrade reflects Seazen Group's declining property
sales and credit metrics, as well as reduced financial flexibility
amid the difficult operating and funding conditions in China's
property sector," says Kelly Chen, a Moody's Vice President and
Senior Analyst.
"The negative outlook reflects uncertainties over Seazen Group's
ability to raise new unsecured long-term funding to maintain its
liquidity buffer," adds Chen.
RATINGS RATIONALE
Seazen Group's CFR reflects the company's established market
position in Yangtze River Delta and growing stream of recurring
rental income, which to some extent supports its cash flow
stability.
The rating is, however, constrained by the company's declining
sales, weakening credit metrics and financial flexibility, and
significant exposure to joint ventures (JVs), which weakens its
corporate transparency and increase contingent liabilities.
Moody's expects Seazen Group's gross contracted sales to fall
around 30% to around RMB165 billion in 2022, after declining 7% to
RMB234 billion in 2021. The drop in contracted sales will reduce
the company's operating cash flow. In the first six months of 2022,
Seazen Group's contracted sales decreased 45% due to weak market
sentiment and COVID-led disruptions.
The company will also have to offer price discounts to support its
contracted sales amid the difficult market conditions, thereby
pressuring its profit margins.
Moody's forecasts Seazen Group's gross margin will fall to 15%-16%
over the next 12-18 months from 17% in 2021. Coupled with a
projected decline in revenue, Seazen Group's EBIT/interest coverage
will fall to below 3.0x over the next 12-18 months from 3.7x in
2021.
Meanwhile, Moody's projects Seazen's investment property (IPs) will
generate RMB5.0 billion-RMB5.5 billion in recurring rental income
(excluding commercial property management fees) over the next 12-18
months. This income will cover 80%-100% of its gross interest
expenses over the same period.
Moody's expects Seazen group's liquidity to remain adequate. Its
unrestricted cash of RMB46.6 billion as of December 2021 and
projected operating cash flow will be sufficient to cover its
maturing debt, including USD1.4 billion of offshore bonds and
RMB12.2 billion onshore bonds becoming mature or puttable before
the end of 2023. However, the use of internal resources to repay
maturing debt could continue to weaken its liquidity buffer over
time.
Moody's notes that Seazen Group has recently issued a 3-year
onshore medium-term-note (MTN) of RMB1 billion with 6.5% coupon and
a put option at the end of the second year after issuance, as well
as a 364-day offshore bond of USD100 million with 7.95% coupon.
However, Moody's sees uncertainties for Seazen Group to
consistently issue long-term unsecured bonds in meaningful amounts
over the next 6-12 months, given weak market sentiment.
Seazen Group has also actively raised onshore bank loans by
pledging its IPs over the past three months. While this financing
would provide the company with alternative liquidity, the increase
in encumbrance of its assets, alongside uncertainties in its
ability to issue unsecured debt, would reduce the company's
financial flexibility.
From a governance perspective, Seazen Group's ownership is
concentrated in its former chairman, who holds a 69.6% stake in
Seazen Group. Moody's has considered the company's established
management team as well as its good institutional governance
structures and standards as required by the Hong Kong and Shanghai
stock exchanges, where the company is listed.
The senior unsecured bonds guaranteed by Seazen Group are rated at
B1, one notch lower than the CFR, due to structural subordination
risk. Most of Seazen Group's claims are at the subsidiary level 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.
On the other hand, the senior unsecured bonds guaranteed by Seazen
Holdings are rated at Ba3, reflecting that creditors of Seazen
Holdings are closer to the assets and have higher priority of
claims over the creditors of Seazen Group in a liquidation
scenario. They also directly benefit from the group's diversified
business profile, with cash flow generation across a large number
of operating subsidiaries with high geographic diversification, as
well as its portfolio of investment properties.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade of the ratings is unlikely in the near term, given the
negative outlook.
However, Moody's could revise Seazen Group's rating outlook to
stable if the company strengthens its access to long-term funding,
improves sales, financial metrics, rental income and maintains
sufficient liquidity.
Moody's could downgrade Seazen Group's ratings if its liquidity and
access to funding further deteriorates; its contracted sales
decline more than Moody's expectation such that its credit metrics
weaken, such as EBIT/interest coverage falling below 2.75x-3.0x on
a sustained basis.
Downward pressure could also increase if the company's contingent
liabilities associated with its JVs or the likelihood of the group
providing funding support to the JVs increases significantly.
The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in January 2018.
Seazen Group Limited operates primarily in residential development
in China. Seazen Group was founded in 1996 by Wang Zhenhua, the
former chairman of Seazen Group. Wang Zhenhua is the largest
shareholder of Seazen Group, holding a 69.6% stake in the company,
and has been involved in the property development business in China
(A1 stable) since 1993. The company had a land bank spread across
129 cities in China, with a total gross floor area of 138 million
square meters as of the end of 2021.
TSINGHUA UNIGROUP: Former Chief Falls Under Investigation
---------------------------------------------------------
Caixin Global reports that a former chairman and major shareholder
of China's Tsinghua Unigroup Co. Ltd. was placed under
investigation as the debt-laden semiconductor conglomerate wraps up
a bankruptcy reorganization to reboot its businesses.
Zhao Weiguo, 55, was taken away from his home in Beijing by
authorities in mid-July and has since been out of contact, several
people with knowledge of the matter told Caixin.
Tsinghua Unigroup Co., Ltd manufactures computer products. The
Company produces computer softwares, computer hardwares, computer
auxiliary equipment, and other products. Tsinghua Unigroup also
produces electronic components, chemicals, and other products.
Tsinghua Unigroup is 51% owned by China's Tsinghua University.
As reported in the Troubled Company Reporter-Asia Pacific on Nov.
18, 2020, Tsinghua Unigroup, a major government-backed player in
China's technology race, has defaulted on a CNY1.3 billion
(US$197.96 million) bond, three sources said, according to
Reuters.
The default by Tsinghua Unigroup, a wholly-owned division of the
prestigious Tsinghua University in Beijing, on Nov. 16, 20210,
immediately triggered a credit rating downgrade that is expected to
weaken the company's financial health. Reuters said the
semiconductor conglomerate has been a major driving force in
Beijing's campaign to boost its chip industry amid an ongoing spat
over trade and technology with Washington, which has drawn
attention to China's reliance on key imported components. Tsinghua
Unigroup defaulted after its proposal to extend a repayment
deadline failed to gain support from bondholders, sources said,
Reuters related.
The TCR-AP reported in mid-July 2022 that an investment vehicle has
taken full ownership of Tsinghua Unigroup Co. Ltd., concluding a
bankruptcy reorganization plan the Chinese semiconductor
conglomerate unveiled last year to deal with its debt crisis.
Tsinghua Unigroup has updated its business registration materials
to show that Beijing Zhiguangxin Holding Co. Ltd. now owns 100% of
the company, according to an exchange filing published on July 11,
2022, CaixingGlobal.com said.
=========
I N D I A
=========
AMBOOTIA TEA: CRISIL Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Ambootia Tea
Exports Private Limited (ATEPL) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.5 CRISIL D (Issuer Not
Cooperating)
Credit Limit Under 5 CRISIL D (Issuer Not
Gold Card Cooperating)
Credit Limit Under 5 CRISIL D (Issuer Not
Gold Card Cooperating)
Foreign Bill 15 CRISIL D (Issuer Not
Purchase Cooperating)
Packing Credit 50 CRISIL D (Issuer Not
Cooperating)
Packing Credit 15 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with ATEPL for
obtaining information through letters and emails dated April 20,
2022 and June 08, 2022 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 ATEPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on ATEPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
ATEPL continue to be 'CRISIL D Issuer Not Cooperating'.
Incorporated in 2009 and promoted by Mr. Sanjay Prakash Bansal,
ATEPL, based in Kolkata (West Bengal), trades in organic Darjeeling
teas and other inorganic varieties of teas in the international and
domestic markets. The company had taken over the business of Tea
Group Exports, a proprietorship concern formed by Mrs. Reena Bansal
(wife of Mr. Bansal) in 2010-11. Mr. Bansal has been engaged in the
tea business for almost three decades. The group is vertically
integrated, with the promoters cultivating and processing organic
Darjeeling tea and Assam tea, and trading in tea in the export and
domestic markets. The group deals in 67 varieties of tea and has 87
brands.
ANNAPURNA COTTON: CARE Lowers Rating on INR6cr LT Loan to B-
------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Annapurna Cotton Impex (ACI), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated May 13, 2021,
placed the rating(s) of ACI under the 'issuer non-cooperating'
category as ACI had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. ACI continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 29, 2022, April 8, 2022, April 18, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of ACI have been
revised on account of non-availability of requisite information.
ACI is established in May 2012 as a partnership firm by the members
of Goyal family. ACI is engaged in cotton ginning and pressing
activities. The manufacturing facilities of the firm is in Sendhwa
(Madhya Pradesh) with installed capacity for cotton bales of 76,500
MTPA and cotton seeds of 15,000 MTPA as on March 31, 2017.
ASEAN AGENCIES: CARE Lowers Rating on INR9cr LT Loan to B
---------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Asean Agencies (AA), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.00 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B+; Stable
Short Term Bank 3.50 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated May 17, 2021,
placed the rating(s) of AA under the 'issuer non-cooperating'
category as AA had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. AA continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 2, 2022, April 12, 2022, April 22, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of AA have been revised
on account of non-availability of requisite information.
Asean Agencies was established in April 2008 by Mr. Tarik Talom
with an objective to enter into undertaking infrastructure and
civil construction business. Since its inception, the entity has
been engaged in civil construction business in the segment like
roads, bridges and railway projects. Further, the entity is also
classified as class 'I' contractor in civil (B&R) under the
department of PWD Government of Arunachal Pradesh. Class 'I'
contractor can bid for all types and higher value of contracts of
Public Works Department (PWD) in Arunachal Pradesh. The entity is
also engaged in contractor business with Rural Work Department
(RWD) and Water Resource Department (WRD).
ASHISH BUILDERS: ICRA Keeps B+ Debt Rating in Not Cooperating
-------------------------------------------------------------
ICRA has retained the Long-Term rating of Ashish Builders and
Developers in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 11.35 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Incorporated in May 2004 by Mr. Ashish Gupta, Ashish Builders &
Developers (ABD) is involved in the development and marketing of
real estate in Kashipur. With an experience of over 10 years, ABD
has completed several residential projects that include plots,
villas, independent floors, apartments and row housing concept
projects. Its two most recent projects were developed over an area
of ~50,000 sq mt and comprised ~400 flats (only ~15 flats remain
unsold in these 2 projects – Prakash City and Prakash Residency.
Currently, the company is developing 4 residential projects located
in Kashipur.
AVEENA MILK: CARE Keeps B- Debt Rating in Not Cooperating Category
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Aveena Milk
Products (AMP) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated June 25, 2021,
placed the rating(s) of AMP under the 'issuer non-cooperating'
category as AMP had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. AMP continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 11, 2022, May 21, 2022, May 31, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution
while using the above rating(s).
Delhi based, Aveena Milk Products (AMP) is a partnership firm
established in January, 2014 and commenced its operations in April,
2017. The current partners are Mr. Avdesh Mittal and Hrishikesh
Farms Private Limited sharing profit and losses in the ratio 99:1.
AMP was established with an aim to operate a milk dairy plant. The
dairy unit is located in Bhagwanpur,
Uttarakhand.
BEE PEE: CARE Keeps B+ Debt Rating in Not Cooperating Category
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Bee Pee
Rollers Private Limited (BPRPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated May 17, 2021,
placed the rating(s) of BPRPL under the 'issuer non-cooperating'
category as BPRPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. BPRPL continues to
be noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 2, 2022, April 12, 2022, April 22, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Bee Pee Rollers Private Limited (BPRPL) was incorporated in June
1994 and currently, the company is managed by Mr. Prem Chand
Agarwal and Mr. Akhil Kumar Agarwal. Since its inception, the
company has been engaged in manufacturing of structural steel
products such as TMT bars. The manufacturing unit of the company is
located at Kalunga, Sundargarh, Odisha with an installed capacity
of 30000 metric tons per annum (MTPA).
BHAGIRATH DHANNALAL: CARE Keeps B- Debt Rating in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Bhagirath
Dhannalal (BD) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.50 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated May 13, 2021,
placed the rating(s) of BD under the 'issuer non-cooperating'
category as BD had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. BD continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 29, 2022, April 8, 2022, April 18, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Bhagirath Dhannalal (BD) based out of Indore (Madhya Pradesh) is
engaged in the business of processing of Moong Dal, Chana Dal and
grading of wheat. It purchases the commodities from local mandi and
sells it in Madhya Pradesh, Tamil Nadu, Delhi and Maharashtra under
brand name of 'Love Story' and 'Om Brand' through 40-50 authorized
broker.
CAPITOL HILL: CRISIL Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Capitol Hill
Hotels Private Limited (CHHPL) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 20 CRISIL D (Issuer Not
Cooperating)
Term Loan 25 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with CHHPL for
obtaining information through letters and emails dated April 20,
2022 and June 8, 2022 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 CHHPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on CHHPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
CHHPL continue to be 'CRISIL D Issuer Not Cooperating'.
Incorporated in 2012, CHHPL is developing a four-star deluxe hotel
in Bistupur, Jamshedpur (Jharkhand). The company is promoted by Mr.
Ashwani Bhatia and Mr. Sanjay Bhatia.
FREEZE ENGINEERING: CRISIL Keeps C Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Freeze
Engineering Industries Private Limited (FEIPL) continue to be
'CRISIL C/CRISIL A4 Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bill Discounting 2.5 CRISIL A4 (Issuer Not
Cooperating)
Export Packing 6 CRISIL C (Issuer Not
Credit Cooperating)
Proposed Long Term 1.5 CRISIL C (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with FEIPL for
obtaining information through letters and emails dated April 20,
2022 and June 8, 2022 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 FEIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on FEIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
FEIPL continue to be 'CRISIL C/CRISIL A4 Issuer Not Cooperating'.
FEIPL was set up at Kollam (Kerala) in 1980. The company processes
and exports sea fish such as cuttlefish, mackerels, leatherjacket
fish, cods, tuna and shrimps.
FUTURE GROUP: 3 Group Firms to File Claims Before IRP
-----------------------------------------------------
The Economic Times reports that three listed Future group firms
will file their claims before the Interim Resolution Professional
(IRP) of Future Retail Ltd (FRL), against which insolvency
proceeding has been initiated by NCLT earlier last week. The three
companies -- Future Consumer Ltd, Future Enterprises Ltd and Future
Supply Chain Solutions Ltd NSE -- in their respective regulatory
filings informed that they have significant amount of receivables
from FRL against the transactions undertaken in the course of the
business.
"With the initiation of the CIRP (Corporate Insolvency Resolution
Process) in FRL, the company would be required to quantify its
receivables and submit claim before the IRP as per the provisions
and process prescribed under the code including applicable rules
made thereunder," said the three Future Group companies in their
respective filings on July 21.
They would continue to take all appropriate steps in this matter,
the filings added.
On July 20, the Mumbai bench of the National Company Law Tribunal
(NCLT) ordered initiating insolvency resolution proceedings against
the debt-ridden FRL and dismissed objections raised by e-commerce
major Amazon.
NCLT has passed the order after allowing the petition filed by Bank
of India (BoI) following loan defaults by FRL -- the flagship firm
of the Kishore Biyani-led group.
Under the Insolvency & Bankruptcy Code, a company facing insolvency
proceedings is protected under moratorium and during that period
any recovery through suits, decree, arbitration etc. is
prohibited.
"The order of moratorium shall have effect from the date of
pronouncement of this order till the completion of the corporate
insolvency resolution process or until this bench approves the
resolution plan or passes an order for liquidation of the corporate
debtor, as the case may be," NCLT had said in its order.
About Future Group
Future Group operates multi-branded retail outlets. The company's
retail chains include department stores, outlet stores, sportswear,
home improvement and consumer durables, supermarket, and
convenience stores as well as food parks.
As reported in the Troubled Company Reporter-Asia Pacific on July
25, 2022, an Indian court agreed to send Future Retail Ltd. into
bankruptcy, allowing the creditors to find a new owner for the
beleaguered retailer that once operated the largest chain of
department stores across the country and was the prized trophy for
two retail sector giants. According to Bloomberg News, the National
Company Law Tribunal on July 20, 2022, gave its verdict on a
petition by Bank of India to start the bankruptcy-resolution
process for the cash-strapped retailer. It dismissed allegations
from the local unit of Amazon.com Inc. that Future Retail's lenders
were colluding with its founders to push the firm into insolvency.
The court also appointed an administrator to take over the
management at Future Retail.
GN POULTRY: CARE Keeps B- Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of GN Poultry
Farms (GNPF) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated June 11, 2021,
placed the rating(s) of GNPF under the 'issuer non-cooperating'
category as GNPF had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. GNPF continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 27, 2022, May 7, 2022, May 17, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Telangana based GN Poultry Farms (GNPF) was established as a
partnership firm in the year 2011. GNPF was promoted by Mr.
Ramchandra Reddy and Mr. Narsi Reddy. The firm is engaged in layer
poultry farming and wholesale trading of eggs. The firm has an
installed capacity of 20,000 layers in 7 sheds as on February 28,
2018. The firm sells its products, eggs, cull birds, and manure to
the customers located in Telangana, Andhra Pradesh and Karnataka.
The firm purchases inputs for feeding of birds like maize, soya,
broken rice, shell grit and minerals from local traders.
GOODEARTH MARITIME: ICRA Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------------
ICRA has retained the rating for the bank facilities of Goodearth
Maritime Limited in the 'Issuer Not Cooperating' category. The
ratings is denoted as "[ICRA]D ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based- 242.96 [ICRA]D; ISSUER NOT COOPERATING;
Term Loan Rating Continues to remain under
'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its Further, ICRA has been sending repeated reminders to
the entity for payment of surveillance fee that became due, but
despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Goodearth Maritime Limited is a part of the Chennai-based Archean
Group, promoted by Mr. P.B. Anandam and family. GML commenced its
operations in FY2002 by chartering ships and later acquired ships
at the trough of the cycle in the calendar year (CY) 2003. However,
due to sustained weakness in charter rates in the dry-bulk segment
in the last few years coupled with interest burden on high debt
levels, the company has been selling its vessels to reduce debt
levels and at present it has no operational vessel. GML also owns a
jetty in Jakhau, Gujarat from where the salt produced by Jakhau
Salt Company Private Limited (JSCPL), a group company, is loaded
onto barges for trans-shipment. GML also has a wholly-owned
subsidiary – GML BKS Private Limited, Jersey – which was
incorporated as a special purpose vehicle (SPV) for coal mining
operations in Indonesia. GML also has a wholly-owned subsidiary
called Drillco Exploration FZE (Drillco). Besides dry-bulk
shipping, the Archean Group is present in export of granite stones,
iron ore fines and industrial salts.
GREEN WOOD: CARE Keeps B- Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Green Wood
Poultries (GWP) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.47 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated June 7, 2021,
placed the rating(s) of GWP under the 'issuer non-cooperating'
category as GWP had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. GWP continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 23, 2022, May 3, 2022, May 13, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Green Wood Poultries (GWP) was established in January, 2015 as a
partnership firm and is currently being managed by Mr. Rajendra
Prasad Aggarwal, Mr. Akshay Aggarwal and Mr. Tarsem Kumar Sharma.
The firm is engaged in poultry farming business at its poultry farm
located in Sangrur, Punjab.
HARESH OVERSEAS: ICRA Upgrades Rating on INR5.0cr Loan to B+
------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Haresh
Overseas Private Limited (HOPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based: 5.00 [ICRA]B+(Stable); upgraded
Working capital From [ICRA]B(Stable)
Facilities
Non-fund based
Facilities 34.37 [ICRA]A4; reaffirmed
Unallocated 0.92 [ICRA]B+(Stable); upgraded
From [ICRA]B(Stable)
Rationale
The upgrade in the rating factors in an improvement in the scale of
operations and profit margins of HOPL. In FY2022, the operating
income grew 106% to INR134 crore from INR65 crore in FY2021; the
operating profit margin also increased to 7.1% in FY2022 from 4.3%
in FY2021 on account of lower provisions for bad debt. The ratings
continue to consider the extensive experience of the promoters in
the chemical trading business and the company's reputed customer
base.
The ratings are, however, constrained by the company's small net
worth base and its adverse leverage (TOL/TNW as on March 31, 2022)
and debt coverage indicators. The profits are also susceptible to
the volatility in chemical prices, and foreign exchange
fluctuations as the entire traded goods are procured from overseas.
ICRA also considers the intense competition in the petrochemical
trading industry owing to the presence of several organised and
unorganised players, which limits the pricing flexibility.
The Stable outlook on the rating reflects ICRA's expectation that
HOPL will benefit from its long track record of operations and
maintain its credit profile, backed by expected sustained revenue
growth and efficient working capital management.
Key rating drivers and their description
Credit strengths
* Extensive experience of promoters: HOPL's promoters have been in
the petrochemical and speciality chemical industry for more than
three decades. The extensive experience and expertise of the
promoters helped HOPL in maintaining long
relationships with established overseas suppliers.
* Established relationships with reputed clientele translate into
repeat orders: The company has long-term relationships with reputed
customers like Berger Paints India Limited, Speciality Industrial
Polymers & Coatings Pvt. Ltd. and other large paint
manufacturers and have received consistent orders from them over
the years. In FY2022, it derived ~51% of its revenue from
the top 10 customers, indicating a moderately diversified customer
base.
* Improvement in scale and profitability: HOPL's operating income
grew by 106% to INR134 crore in FY2022 compared with INR65 crore in
FY2021 as healthy demand and higher realisations pushed up sales
volumes. The company's operating margins have increased to 7.1% in
FY2022 from 4.3% in FY2021 mainly on account of lower provisioning
of bad debt. The net margins of the company also improved to 8.5%
in FY2022 from 3.6% in FY2021, supported by improved OPM and
profits on the sale of the guar gum manufacturing unit. HOPL booked
a profit of INR4.15 crore from the sale of the guar gum powder
manufacturing
unit, which supported the overall cashflows.
Credit challenges
* Adverse capital structure and moderate debt coverage indicators:
The company's financial risk profile remains average owing to a
small net worth base (INR11.5 crore as on March 31, 2022) and
adverse capital structure. The company has high reliance on
creditor funding which has resulted in high outside liabilities,
reflected in TOL/TNW of 5.1 times (though improved from 327.6 times
in FY2021). The coverage indicators have improved in FY2022 with
the improvement in profitability. Going forward, with the
anticipated decline in margins (OPM of ~4-4.5%) owing to adverse
forex rate movement and stiff competition, the
debt protection metrics are expected to remain at moderate levels.
* Profitability exposed to volatility in raw material prices and
forex rates: The inventory prices and profit margins remain
vulnerable to the commodity price cycles, with HOPL trading in
commodity chemicals. Though a major part of the purchases are order
backed, the company holds up to two months of inventory for some
products. The prices primarily move in line with international
demand and supply scenario and are subject to considerable
volatility, depending on the crude oil price movements. Thus, its
margins remain susceptible to any adverse price movements. The
chemicals that HOPL trades in are imported primarily from Saudi
Arabia and Thailand. However, exports form a minor portion of the
total sales, exposing the company to foreign currency fluctuation
risk in the absence of any natural hedge. However, the company has
now started hedging a major portion (60-70%) of its forex exposure,
which will provide stability to the margins in the coming years.
* Intense competition in fragmented trading business: The chemical
trading business is characterised by stiff competition owing to the
presence of many companies in the organised and unorganised sectors
limiting HOPL's pricing flexibility.
Liquidity position: Stretched
The company's liquidity position continues to be stretched given
the sizeable LC maturities in the near term. Further, the company's
debt servicing ability completely depends on the timeliness of the
receivable receipt, given the almost full utilisation of the
working capital limits. HOPL also avails ad-hoc LC limits, backed
by 100% margin on FDs on need basis. The company has proposed an
enhancement in the overall working capital limits, which is
expected to support the liquidity profile.
Rating sensitivities
Positive factors - ICRA could upgrade HOPL's ratings if the company
demonstrates a sustained improvement in scale and profit margins,
leading to an improvement in the key debt protection metrics and
liquidity position.
Negative factors - Negative pressure on HOPL's ratings could arise
if there is a deterioration in the company's scale and
profitability, or if any stretch in the working capital cycle
adversely impacts the key credit metrics and liquidity position.
HOPL was incorporated in 1983 and is managed by Mr. Kailash S.
Kasat at present. The company is headquartered in Mumbai
(Maharashtra) with branch offices in Cochin (Kerala), Gandhidham
(Gujarat) and Jodhpur (Rajasthan). It is involved in the trading,
marketing and distribution of petrochemicals and solvents.
HIMALAYA COMMUNICATIONS: ICRA Keeps B+ Ratings in Not Cooperating
-----------------------------------------------------------------
ICRA has retained the long-term and short-term ratings of Himalaya
Communications Limited in the 'Issuer Not Cooperating' category.
The ratings are denoted as [ICRA]B (Stable)/[ICRA]A4; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 1.92 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term- 5.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Short Term- 21.50 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
Others to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
HCL, incorporated in 2000, is promoted by Mr. S C Jain; it began
operations in 2002. The company manufactures optical fiber cable
(OFC) and polyethylene insulated jelly filled cable (PIJF) in its
manufacturing facility at Baddi, Himachal Pradesh. HCL has annual
capacity to manufacture 15.4 lakh conductor kilometer of PIJF
cables and 28.56 kilometer of OFC in three shifts.
HITECH CELLPHONE: ICRA Keeps B+ Debt Ratings in Not Cooperating
---------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of HiTech
Cellphone Private Limited in the 'Issuer Not Cooperating' category.
The ratings are denoted as "[ICRA]B+(Stable)/ [ICRA]A4 ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 8.00 [ICRA]B+ (Stable) ISSUER NOT
COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Unallocated 5.00 [ICRA]B+ (Stable) ISSUER NOT
Limit COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Non Fund Based 7.00 [ICRA]A4 ISSUER NOT
Limit COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its Further, ICRA has been sending repeated reminders to
the entity for payment of surveillance fee that became due, but
despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Hitech Cellphone Private Limited was established in 2008 and is
promoted by Kolkata based Md. Rahabuddin, Md. Gyasuddin and Md.
Kamaluddin and their family. The company is primarily involved in
trading of mobile phones. Other than the trading business the
promoters of the company are also involved in transportation
business through its own fleet of trucks. The company sells its
phones under the brand name 'Hi-Tech' and sales of the company are
largely concentrated in the state of West Bengal.
HONEY JEWELLERY: CARE Keeps B- Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Honey
Jewellery (HJ) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated June 16, 2021,
placed the rating(s) of HJ under the 'issuer non-cooperating'
category as HJ had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. HJ continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 2, 2022, May 12, 2022, May 22, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Varanasi, Uttar Pradesh based Honey Jewellery (HJ) was established
in April, 2007 as a proprietorship firm and is currently being
managed by Mr. Sumit Verma. The firm is engaged in the retail
trading of silver and gold jewellery (anklets, toe rings, utensils,
necklaces, earrings, rings, and bangles). The firm operates through
its two showrooms located at Varanasi and Gorakhpur, Uttar Pradesh.
HYPNOTIK CLOTHING: CRISIL Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Hypnotik
Clothing Private Limited (HCPL) continues to be 'CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Packing Credit 6.75 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with HCPL for
obtaining information through letters and emails dated April 20,
2022 and June 8, 2022 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 HCPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on HCPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
HCPL continues to be 'CRISIL D Issuer Not Cooperating'.
HCPL was set up in December 2010, by Mr Vijay Golani and Ms Resham
Chellaram. The company exports readymade garments primarily to the
US. Garments are manufactured on a job-work basis from various
players in Karnataka, Maharashtra and Gujarat. HCPL manufactures
about 30% of its total volume and the balance is outsourced.
JATIN AND COMPANY: CARE Lowers Rating on INR0.68cr LT Loan to B-
----------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Jatin and Company (JC), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 0.68 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Short Term Bank 19.24 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated June 1, 2021,
placed the rating(s) of JC under the 'issuer non-cooperating'
category as JC had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. JC continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 17, 2022, April 27, 2022, May 7, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of JC have been revised
on account of non-availability of requisite information.
Established in April 1979, Jatin & Company (JAC) is a partnership
concern set up by brothers Mr. Jatin J. Bhuta and Mr. Tushar J.
Bhuta. JAC is engaged in exports of agricultural commodities such
as basmati rice, black pepper, cardamom, cashew, coriander seeds &
powder, cumin seeds, fennel seeds, mustard seeds, fenugreek seeds,
red chillies & powder and turmeric fingers & powder to gulf
countries.
JEPPIAAR POWER: ICRA Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
ICRA has retained the rating for the bank facilities of Jeppiaar
Power Corporation Private Limited in the 'Issuer Not Cooperating'
category. The rating is denoted as "[ICRA]D ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 92.50 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its Further, ICRA has been sending repeated reminders to
the entity for payment of surveillance fee that became due, but
despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Jeppiaar Power Corporation Private Limited (JPCPL) was incorporated
in October 2009 by the Jeppiaar Group which manages a diverse set
of businesses in the state of Tamil Nadu. The company is
establishing a coal-based Captive Power Plant (CPP) with a total
generating capacity of 30 MW in Kanchipuram, Tamil Nadu.
LAMPEX ELECTRONICS: ICRA Keeps B+ Debt Rating in Not Cooperating
----------------------------------------------------------------
ICRA has retained the long-term and short-term ratings of Lampex
Electronics Limited in the 'Issuer Not Cooperating' category. The
ratings are denoted as [ICRA]B+(Stable)/[ICRA]A4; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ 2.50 [ICRA]B+(Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain
under issuer not cooperating
category
Long Term/ 22.50 [ICRA]B+(Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Non-Fund Rating Continues to remain
Based-Others under issuer not cooperating
category
Short Term- 10.00 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Long Term- 50.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Lampex Electronics Limited (LEL) was incorporated on 01.04.1991 as
a private limited company. In 2002, the constitution of the company
was changed to limited company. LEL is engaged in manufacturing of
LCD and LCD modules, handheld terminals like spot billing machines,
products like cash registers. The company is also involved in
providing Electronic Manufacturing Services (EMS) on job work
basis. LEL operates through its owned facility located in
Kukatpally, Hyderabad. The company has diversified into
manufacturing of Set Top Boxes (STBs) in FY2017.
MAHAPRABHU RESIDENCY: CARE Moves B+ Debt Rating to Not Cooperating
------------------------------------------------------------------
CARE Ratings has migrated the ratings on certain bank facilities of
Mahaprabhu Residency LLP (MRLLP), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 65.00 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Rating moved to
ISSUER NOT COOPERATING category
Detailed rationale and key rating drivers
CARE Ratings Ltd. has been seeking information from MRLLP to
monitor the rating vide e-mail communications dated May 6, 2022,
June 6, 2022, June 14, 2022, June 21, 2022 and June 22, 2022 and
numerous phone calls. However, despite the repeated requests, the
firm has not provided the requisite information for monitoring the
rating.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating. The rating on Mahaprabhu Residency LLP's
bank facilities will now be denoted as CARE B+; Stable; ISSUER NOT
COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers
At the time of last rating on June 18, 2021 the following were the
rating strengths and weaknesses (updated for the information
available from the audit report for FY21, Gujarat RERA website and
Liases Foras portal)
Key rating weaknesses
* High implementation risk: MRLLP launched the residential project
'Harmony Harikesh' in December 2021 and is envisaged to be
completed by December 2027. The project has received all requisite
approvals for commencement of construction. Further, the
construction is at nascent stage, hence implementation risk
remained high. However, considering demonstrated project execution
capability by the promoter groups, achievement of financial closure
and infusion of entire promoter's contribution implementation risk
is reduced to some extent.
* High salability risk: The total project cost of INR161 crore is
envisaged to be funded through debt: promoters' contribution:
customer advances in the ratio of 40:40:19. Till date, MRLLP has
received bookings for 32 units aggregating to around 9% of the
total units (i.e.348 units. Further, considering the lower booking
status, subdued buyer's sentiments & sluggish demand scenario, the
salability risk remained high.
* Inherent risk associated with real estate sector: The life cycle
of a real estate project is long and the state of the economy at
every point in time, right from land acquisition to construction to
actual delivery, has an impact on the project. This
capital-intensive sector is extremely vulnerable to the economic
cycles. Further, the real estate sector in India is highly
fragmented with many regional players, who have significant
presence in their respective local markets which in turn leads to
intense competition within the industry. The real estate sector is
sensitive to the economic cycle and interest rates. Adverse
movement in interest rate affects the real estate players in both
ways – by hampering demand as well as increasing the cost of
construction.
Key rating strengths
* Vast experience & established track record of the promoter
groups: MRLLP is promoted by Mr Devansh Patel, Mr Jayprakash Patel
and ten other partners. Mr Jayprakash Patel administers the overall
affairs of the firm and has an experience of over 15 years in
construction industry. Mr Devansh Patel looks after construction
activity and has an experience of over five years in real estate
sector. MRLLP is a part of the Ahmedabad-based Harmony & Times
group and as on May 31, 2021, both the groups, on a combined basis,
have developed 32 residential & commercial real estate projects
along with plot schemes with total built up area of around 76 lakh
square feet (lsf). Better construction quality and timely
completion of projects by both groups have resulted in a strong
brand recall in Ahmedabad's real estate market.
MRLLP was incorporated on April 25, 2019 by Mr Devansh Patel, Mr
Jayprakash Patel and ten other partners to construct a residential
real estate project 'Harmony Harikesh'. The MRLLP is a part of
Ahmedabad-based 'Harmony & Times' group. The project; Harmony
Harikesh is a residential project (registered under Gujarat
Registration No.
PR/GJ/AHMEDABAD/AHMEDABADCITY/AUDA/RAA09838/210222) consisting of
three high-rise residential buildings of 30 floors aggregating 348
flats. MRLLP has launched the project in December 2021. The project
is located at Science city road, Sola in Ahmedabad.
MANIKYAM POULTRY: CARE Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Manikyam
Poultry Farm (MPF) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated June 16, 2021,
placed the rating(s) of MPF under the 'issuer non-cooperating'
category as MPF had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. MPF continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 2, 2022, May 12, 2022, May 22, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Manikyam Poultry Farm (MPF) was established in the year 2007 by Mr.
I. Siva Koti Reddy, K.Rama Mohan Rao and others. The firm is
engaged in farming of egg, laying poultry birds (chickens) and
trading of eggs, cull birds and their manure. The firm sells its
products such as eggs and cull birds to retailers through own sales
personnel as well as through dealers in the states of Mumbai, Goa,
Belgaum and Bangalore. The firm mainly buys chicks (small chickens)
and inputs for feeding of birds like rice broken, maize, sun flower
oilcake, shell grit, minerals and soya from local traders.
MARKS ENGINEERING: ICRA Keeps B+ Debt Ratings in Not Cooperating
----------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Marks
Engineering Works in the 'Issuer Not Cooperating' category. The
ratings are denoted as "[ICRA]B+(Stable)/ [ICRA]A4 ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 1.50 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term- 1.35 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Short Term- 9.65 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its Further, ICRA has been sending repeated reminders to
the entity for payment of surveillance fee that became due, but
despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
M/s. Marks Engineering Works, a partnership concern established in
1999, is engaged in manufacturing and export of precision machined
components. The Firm is managed by the partners namely Mr. K.
Veluswami and Mr. K. Chellamuthu.
OM COTTEX: CARE Keeps D Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Om Cottex
(OC) continues to remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated May 12, 2021,
placed the rating(s) of OC under the 'issuer non-cooperating'
category as OC had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. OC continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 28, 2022, April 7, 2022, April 17, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Botad (Gujarat) based Om Cottex (OC) was established in 2008 as a
partnership firm. Currently, OC is managed by six partners with
unequal profit and loss sharing agreement between them. OC is into
the business of cotton ginning & pressing and crushing of cotton
seeds. While cotton bales are used in manufacturing of cotton yarn,
cotton seeds are further processed for extraction of edible oil. OC
operates from its sole manufacturing facility located in Botad
(Gujarat) and has an installed capacity of 6048 metric tons per
annum (MTPA) for cotton bales, 756 MTPA for cotton seed oil & 5418
MTPA for cake as on March 31, 2016. OC markets its products in the
states of Gujarat, Tamil Nadu and Maharashtra.
OM SHIVASHAKTHI: CARE Keeps C Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Om
Shivashakthi Poultry Breeders (OSPB) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.10 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated June 16, 2021,
placed the rating(s) of OSPB under the 'issuer non-cooperating'
category as OSPB had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. OSPB continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 2, 2022, May 12, 2022, May 22, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Om Shivashakthi Poultry Breeders (OSPB) was established in the year
2004 and promoted by Mr. Ramaswamy (Managing Partner), Mrs.
Girijamma Ramasamy (Partner), Mrs. K.R. Vachana (partner) and Mr.
K.R.Ravindra (Partner). The firm is engaged in farming of egg,
laying poultry birds (chickens) and trading of eggs, cull birds and
their Manure. The firm sells its products like eggs and cull birds
in Kerala to retailers through own sales personnel and through some
dealers. The firm mainly buys chicks (small chickens) from Kerala.
The firm purchases raw materials for feeding of birds like rice
broken, maize, sun flower oil cake, shell grit, minerals and soya
from local traders.
POOJA ASSOCIATE: CARE Lowers Rating on INR2CR LT Loan to B-
-----------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Pooja Associate (Contract Division) (PA), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 2.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Short Term Bank 8.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated May 24, 2021,
placed the rating(s) of PA under the 'issuer non-cooperating'
category as PA had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. PA continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 9, 2022, April 19, 2022, April 30, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of PA have been revised
on account of non-availability of requisite information.
Pooja Associates (Contract Division) was established in the year
1995 with its office located at Guwahati, Assam. Since its
inception the entity is engaged in civil construction works on
behalf of various public and private entities. Further, to
diversify the business the entity also started its transportation
business from the year 2011 onwards.
PTG TECHNOPAK: ICRA Reaffirms B+ Rating on INR5.85cr Cash Loan
--------------------------------------------------------------
ICRA has reaffirmed ratings on certain bank facilities of PTG
Technopak Private Limited's (PTG), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 5.85 [ICRA]B+ (Stable); Reaffirmed
Fund Based-
Cash Credit
Long Term- 5.00 [ICRA]B+ (Stable); Reaffirmed
Fund Based-
Term Loan
Short-term:
Interchangeable (5.85) [ICRA]A4; reaffirmed
Rationale
The rating action factors in PTG steady revenue growth, driven by
an increase in sales volumes with higher capacity utilisation in
FY2022. The rating also factors in the expanding customer base
which includes reputed names such as Pidilite Industries Limited,
Indian Oil Corporation Limited and Bajaj Hindustan Sugar Limited.
PTG has no external debt as on date other than working capital
limits which is typically sparsely utilised. PTG meets its funding
requirement mostly through internal cash accruals and surplus funds
from other Group companies (like Track Innovations (India) Private
Limited), which are partially interest-bearing.
Moreover, while the company has been mostly able to pass on the
price hikes in raw materials to the end-consumers, the operating
margins have been declining to 5.95% in FY2022 from 6.7% in FY2021,
primarily owing to a change in the product mix. Additionally, the
ratings continue to derive comfort from the promoter's extensive
experience in the plastic rigid packaging industry and a favourable
demand outlook for PTG's products (high-density polyethylene drums,
barrels and containers). The ratings, however, remain constrained
by the highly fragmented and competitive industry, which limits the
pricing flexibility of the industry participants, and PTG's modest
scale of operations, resulting in limited economies of scale.
Despite some improvement, its financial profile remains average.
However, given the low capital base and accretion to reserves due
to the limited operational track record, PTG's capital structure
has remained leveraged with a gearing of 3.82 times (2.63 times
excluding unsecured loans) and TOL/TNW of 5.4 times as of March
2022. Moreover, the company's profit margins remain vulnerable to
the volatility in key raw material prices (high-density
polyethylene or HDPE) and also to the adverse movement in foreign
currency exchange rates, given that a part of its raw material
requirement is met through imports.
The Stable outlook on the ratings reflects ICRA's expectation that
PTG will continue to benefit from the extensive experience of its
promoters in the industry and a favourable demand outlook for its
products, enabling it to scale up its operations steadily.
Key rating drivers and their description
Credit strengths
* Extensive domain experience of promoters: PTG is a part of the
Padia Group, which is involved in the timber and plastic rigid
packaging businesses through various companies. The company's
promoters have an extensive experience of over a decade in
manufacturing HDPE barrels, drums and containers. This has helped
them to scale up PTG's operations steadily since the commencement
of its operations in 2017.
* Growing customer base; includes reputed names: The promoters have
been able to grow PTG's customer base because of their prior
experience in the industry. The company has reputed clients such as
Pidilite Industries Limited, Indian Oil Corporation Limited and
Bajaj Hindustan Sugar Limited. However, given its current scale,
PTG only meets a part of the total requirements of its major
customers. The customer concentration was relatively high with top
five clients accounting for 75- 76% of the total sales in FY2022.
* Favourable demand outlook for domestic HDPE barrel industry:
There is good demand prospect for the polymer-based packaging
industry, supported by cost and quality advantages, against that
for metal-based containers.
Credit challenges
* Fragmented and competitive nature of the industry limits pricing
flexibility: The low manufacturing technological complexity and,
consequently, a moderate capital investment in setting up an
injection moulding plastic manufacturing plant have resulted in
intense competition. Moreover, there are several organised and
unorganised players in the field, of which the former accounts for
a greater share of the market. Intense competition limits the
pricing flexibility of the industry participants, including PTG.
* Modest scale due to limited track record of operations: Though
the company's operating income (OI) has increased to ~Rs.37 crore
in FY2022, its existing scale of operations remains modest. This
constrains its ability to benefit from the economies of scale and
limits its pricing flexibility vis-à-vis the bigger entities
operating the same business.
* Average financial risk profile: Despite some improvement, PTG's
financial profile remains average. The company's capital structure
remains leveraged owing to low net worth, marked by a gearing of
4.08 times as on March 31, 2022. This, coupled with increasing
working capital requirements and some contraction in margins, led
to average debt protection metrics for FY2022.
* Profit margins vulnerable to volatility in raw material prices
and foreign exchange: Any adverse movement in raw material prices
– that cannot be entirely passed on to its customers – may have
a negative impact on the company's margins. This is also
demonstrated by some contraction in margins in FY2022 owing to the
sizeable firming up of raw material prices. Though the share of
material requirement which is met through imports is decreasing,
PTG's margins remain vulnerable to foreign exchange rate
fluctuations in the absence of an adequate hedging mechanism.
Liquidity position: Adequate
PTG's liquidity position is adequate, supported by steady internal
accrual generation and cushion in the form of undrawn bank lines.
Moreover, PTG does not have any major capex plans over the medium
term and the cash accrual generation is expected to be sufficient
to meet the debt repayment obligations.
Rating sensitivities
Positive factors – The company's ratings could be upgraded if it
demonstrates a sustained improvement in revenue and cash accrual
generation, leading to a strengthened net worth position and
improvement in its debt protection metrics.
Negative factors – Negative pressure on the company's ratings
could arise if there is a significant decline in revenues or
margins, resulting in a reduction of cash accruals. Further, any
significant capex or stretch in the working capital cycle adversely
impacting the liquidity profile might result in a rating downgrade.
A specific credit metric that could lead to a downgrade includes a
DSCR of less than 1.1 times on a sustained basis.
PTG, incorporated in 2016, is a wholly promoter Group-owned
organisation of the Padia Group, with its manufacturing facility in
Ambala, Haryana. The company commenced commercial operations in
February 2017 and manufactures high-density polyethylene (HDPE)
drums, barrels and containers. The major promoter of PTG, Mr. Amit
Padia, has ~15 years of experience in manufacturing plastic-moulded
products and the direct marketing of products for industrial
packaging.
R.N. FOODS: CARE Assigns B+ Rating to INR7.30cr LT Loan
-------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of R.N.
Foods (RNF), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.30 CARE B+; Stable; Assigned
Facilities
Long Term/ 7.70 CARE B+; Stable/CARE A4
Short Term Assigned
Bank Facilities
Detailed Rationale & Key Rating Drivers
Rating assigned to the bank facilities of RNF remains constrained
by modest though growing scale of operations, thin profitability
margins, Leveraged capital structure and weak debt coverage
indicators. The rating further remains constrained on account
constitution of the entity being a proprietorship firm, and
competitive and fragmented nature of industry. The rating, however,
draws comfort from experienced promoter coupled with long track
record of operations.
Rating Sensitivities
Positive Factors
* Improvement in PBIDLT and PAT margin above 2.50% and 1.50%
respectively on continuous basis
* Improvement in total operating Income to INR150 crores on
sustained basis.
Negative Factors
* Deterioration in creditor days to above 100 days on sustained
basis.
* Decline in scale of operation below 40.00 crore.
Detailed description of the key rating drivers
Key Rating Weaknesses
* Modest though growing scale of operations coupled with low net
worth base: RNF's scale of operation have remained modest though
growing as marked by a total operating income and gross cash
accruals of INR81.61 crore and INR0.40 crore respectively during
FY22. RNF's total operating income grew at the rate of ~10.51% in
FY22 from FY21. Further, the firm's net worth base was relatively
small at INR0.69 crore as on March 31, 2022. The small scale limits
the firm's financial flexibility in times of stress and deprives it
from scale benefits. In 2MFY23, the firm has generated total income
from operation amounting to INR15.61 crore.
* Thin profitability margins: The profitability margins of the firm
stood thin marked by PBILDT margin of 0.78% and PAT margin of 0.17%
in FY22 due to firm's presence in a highly competitive and
fragmented industry. However, the PBIDLT margin improved marginally
to 0.78 % in FY22 as against 0.19 % in FY21 respectively on account
of better cost management done. Further, PAT margin has remained
almost in line with the previous year to 0.17% in FY22. In 2MFY23,
the firm has generated PAT margin of ~0.26%.
* Leveraged capital structure and weak debt coverage indicators: As
on March 31 2022, the debt profile of RNF comprises of working
capital borrowings of INR5.30 crores, Unsecured loan of INR11.83
crore and term loan of INR1.92 crore. The unsecured loan to the
tune of INR11.83 crores in FY22 respectively is classified as quasi
equity as the same is subordinated to debt as per sanction letter.
The capital structure of the firm stood leveraged as marked by
TOL/TNW and overall gearing ratio which stood at 1.54x and 0.58x
respectively as on March 31, 2022 as against 246.98x and 3.30x
respectively as on March 31, 2021 on account of firm's high
reliance on external borrowings to fund various working capital
requirements of business. Further, owing to thin profitability
margins and high debt levels, the debt coverage indicators of the
firm stood weak marked by interest coverage ratio and total debt to
GCA stood at 2.77x and 17.86x respectively as on March 31, 2022, as
against 75.65x and 1.75x as on March 31, 2021 respectively.
* Constitution of the entity being a proprietorship firm: RNF's
constitution being a proprietorship firm has the inherent risk of
possibility of withdrawal of the proprietor's capital at the time
of personal contingency and firm being dissolved upon the
death/retirement of proprietor. Moreover, proprietorship firms have
restricted access to external borrowing as credit worthiness of
proprietor would be key factors affecting credit decision for
lenders.
* Competitive and Fragmented nature of industry: The commodity
nature of the product makes the industry highly fragmented, with
numerous players operating in the unorganized sector with very less
product differentiation. There are small scale operators which are
not into end-to-end processing of rice from paddy, instead they
merely complete a small fraction of processing and dispose-off
semi-processed rice to other big rice millers for further
processing. Furthermore, the concentration of rice millers around
the paddy growing regions makes the business intensely competitive.
The raw material (paddy) prices are moderately regulated by
government to safeguard the interest of farmers, which in turn
limits the bargaining power of the rice millers.
Key Rating Strengths
* Experienced proprietor coupled with long track record of
operations: RNF was established as a proprietorship firm by Ms.
Rakesh Garg. He is graduate by qualification and holds experience
of more than a decade in rice milling industry, agriculture being
the conventional business of the proprietor's family. The long
track record in the rice industry has aided the firm in having
established relationship with customers and suppliers.
Liquidity: Stretched
The firm has stretched liquidity position characterized by expected
tightly match accruals vis-à-vis repayment obligations. The firm
has generated gross cash accruals of INR0.40 crore in FY22 and is
expected to envisage gross cash accruals of INR0.47 crore in FY23
against repayment obligation of INR~0.28 in same year. The firm has
low free cash and cash equivalents to the tune of INR0.12 crore as
on March 31, 2022 (Audited). Further, working capital utilization
remains at ~85% for the past 12 months ending on May, 2022.
Established in 2017, R.N. Foods (RNF) is a Proprietorship Firm
based in Karnal (Haryana). Mr. Rakesh Garg is proprietor of the
firm, who owns and manages its business affairs. RNF is engaged in
the processing, grading, sorting and trading of basmati rice at its
manufacturing plant situated in Karnal. The plant has manufacturing
capacity of ~97,000-98,000 tonnes per annum. RNF holds bargaining
power with the suppliers by procuring its key raw material i. e,
paddy from rice millers located in U.P., Bihar, Punjab, M.P.,
Rajasthan, Haryana and so on. Similarly, in terms of clientele, the
firm has diversified customer base which comprises reputed
exporters like India Gate, KRBL, Sunstar Overseas Ltd., Supple Tek
Industries Private Limited, Shiv Shakti Exporters, JD International
etc.
RADIANT INDUSTRIES: CARE Lowers Rating on INR3.48cr LT Loan to B
----------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Radiant Industries (RI), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 3.48 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B+; Stable
Long Term/Short 11.52 CARE B; Stable/CARE A4;
Term Bank ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE B+; Stable/CARE A4
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated June 02, 2021,
placed the rating(s) of RI under the 'issuer non-cooperating'
category as RI had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. RI continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 18, 2022, April 28, 2022, May 8, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings have been revised on account of non-availability of
requisite information.
Radiant Industries was established in the year 1995 as a
partnership firm by Mr. Vijay Jadhav and Mrs. Sangeeta Jadhav. The
entity is engaged in manufacturing of fabricated and precision
machined metal components (viz wind mill parts, heavy engineering
products and die holders, bolsters, tooling and others) which finds
its major application in the automobile industry, forging and
tooling, oil and gas industry and in the windmill sector.
RAJIB CASHEW: CARE Lowers Rating on INR14.24cr LT Loan to C
-----------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Rajib Cashew Processing Private Limited (RCPPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 14.24 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B-; Stable
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated May 07, 2021,
placed the rating(s) of RCPPL under the 'issuer non-cooperating'
category as RCPPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. RCPPL continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 23, 2022, April 2, 2022, April 12, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The rating assigned to the bank facilities of RCPPL have been
revised on account of non-availability of requisite information.
The rating also factored in decline in scale of operations,
accumulated net losses and increase in debt levels during FY21.
Rajib Cashew Processing Private Limited (RCPPL) was incorporated in
April, 2012. The company has started its operations from April,
2013, the company has been engaged in processing of cashew nuts at
its plant located at Mednipur, West Bengal. The plant has a
processing capacity of 8 metric tonnes per day of raw cashew nuts
per day. The company procures its raw materials from domestic as
well as international markets and sales happen through dealers
across all over India.
RAM INDUSTRIES: CARE Lowers Rating on INR9.0cr LT Loan to B-
------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Shri Ram Industries- Fazilka (SRIF), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated June 4, 2021,
placed the rating(s) of SRIF under the 'issuer non-cooperating'
category as SRIF had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. SRIF continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 20, 2022, April 30, 2022, May 10, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings have been revised on account of non-availability of
requisite information.
Shri Ram Industries (SRI) was established on March 19, 2014 as a
partnership firm by Mr. Ashok Kumar Goomber, Mr. Rajan Goomber and
Mr. Varun Doda to setup the business of rice processing. The plant
has been set-up at Jatwali Village, Fazilka district, Punjab.
REDDY AND REDDY: CARE Keeps B- Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Reddy and
Reddy Automobiles (RRA) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated June 14, 2021,
placed the rating(s) of RRA under the 'issuer non-cooperating'
category as RRA had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. RRA continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 30, 2022, May 10, 2022, May 20, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Reddy and Reddy Automobiles (RRA) is a partnership firm,
incorporated in 2004 by Mr. G. Ramakrishna Reddy and Mrs. G Radha.
Mr. G Ramakrishna Reddy is the Managing Partner of the firm. RRA is
an authorized dealer of Hero MotoCorp Ltd's entire range of
two-wheelers, and their spares and accessories. RRA has one
showroom-cum-service station in Bhimavaram (Andhra Pradesh), and
five display centres in West Godavari (Andhra Pradesh). RRA belongs
to Reddy and Reddy Group which has diverse interests including
trading of prawns feed, authorized dealership of Maruti Suzuki
India Limited (MSIL) and is also engaged in button manufacturing
business.
RELIANCE BROADCAST: CARE Moves D Debt Rating to Not Cooperating
---------------------------------------------------------------
CARE Ratings has migrated the ratings on certain bank facilities of
Reliance Broadcast Network Limited (RBNL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 83.69 CARE D; ISSUER NOT COOPERATING;
Facilities Rating moved to ISSUER NOT
COOPERATING category
Non Convertible 50.00 CARE D; ISSUER NOT COOPERATING;
Debentures Rating moved to ISSUER NOT
COOPERATING category
Non Convertible 66.80 CARE D; ISSUER NOT COOPERATING;
Debentures Rating moved to ISSUER NOT
COOPERATING category
Non Convertible 50.00 CARE D; ISSUER NOT COOPERATING;
Debentures Rating moved to ISSUER NOT
COOPERATING category
Non Convertible 65.00 CARE D; ISSUER NOT COOPERATING;
Debentures Rating moved to ISSUER NOT
COOPERATING category
Detailed rationale and key rating drivers
CARE Ratings Ltd. has been seeking information from RBNL to monitor
the rating(s) vide e-mail communication dated May 24, 2022, May 30,
2022, among others and numerous phone calls. However, despite
repeated requests, the company has not provided the requisite
information for monitoring the ratings. In line with the extant
SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the
basis of the best available information which however, in CARE
Ratings Ltd.'s opinion is not sufficient to arrive at a fair
rating. Further, RBNL has not paid the surveillance fees for the
rating exercise as agreed to in its Rating Agreement. The rating on
RBNL's bank facilities/Instruments 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 ratings of Bank facilities/Instruments factors in the ongoing
delays in debt servicing reported to CARE through 'No Default
Statement' dated July 1, 2022, received on July 12, 2022, and
non-payments of the principal of the NCDs (ISINs: INE445K07163,
INE445K07106, INE445K07155, INE445K07049 and INE445K07189) maturing
on, October 8, 2020, July 20, 2020, October 8, 2019, May 13, 2020,
and October 10, 2019. Reliance Broadcast Network Limited (RBNL) has
not paid the surveillance fees for the rating exercise agreed to in
its Rating Agreement. In line with the extant SEBI guidelines, CARE
Ratings Ltd.'s rating on RBNL's bank facilities/instruments will
now be denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers
At the time of last rating on August 31, 2021, the following were
the rating strengths and weaknesses (updated for the
information available from ROC):
Key Rating Weaknesses
* Ongoing delays/default in debt servicing: There are ongoing delay
in debt servicing since September 2019.
* Weak financial performance coupled with weak capital structure:
Total Operating Income of the company declined by around 45% to
INR125 crore in FY21 (vs. INR231 crore in FY20). The company
continued to incur losses in FY21,, primarily due to high finance
costs which has resulted in negative net worth as on March 31,
2021. The operations were also impacted by the outbreak of
covid-19. Continuous losses over the past few years have eroded the
net-worth of the company. Despite the equity infusion of INR600
crore in FY20, the net-worth stood at negative value of INR684
crore as on March 31, 2021, and negative value of INR582 crore as
on March 31, 2020. Accordingly, the overall gearing and total debt
to GCA ratios are not meaningful.
* Termination of proposed acquisition of RBNL by Music Broadcast
Ltd (MBL): RBNL had entered into Share Subscription Agreement,
Share Purchase Agreement and Shareholding Agreements, dated June
12, 2019, with Reliance Entertainment Networks Private Limited
(formerly known as Reliance Land Private Limited), Reliance Capital
Limited and Music Broadcast Limited (MBL). Pursuant to these
agreements MBL would acquire 24% equity share capital in RBNL by
way of a preferential allotment and thereafter subject to the
receipt of all regulatory approvals value of INR1,050 crores.
During FY21, MBL terminated INR1,050 crore acquisition deal with
RBNL, since the parties did not receive approval from the Ministry
of Information and Broadcasting (MIB) and long stop date under the
definitive agreements has expired.
* Operates in competitive and regulated industry segment: The
competition is ever increasing with availability of different
broadcasting channels and large number of players entering the
broadcasting industry. Moreover, technological changes have laid
new distribution platforms inviting competition from newer players.
To maintain its competitive edge in such a scenario, the company
will need to anticipate preferences to create, acquire, commission,
and produce compelling content across platforms favoured by the
consumers.
Reliance Broadcast Network Limited (RBNL), a public limited company
(unlisted), incorporated on December 27, 2005, is a part of the
Anil Ambani-led Reliance Group. The company is in the business of
radio broadcasting (BIG FM). RBNL operates FM radio broadcasting
stations in 58 Indian cities under the brand name 'BIG FM'.
SHIRPUR GOLD: CARE Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shirpur
Gold Refinery Limited (SGRL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 37.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 328.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated August 23,
2021, placed the ratings of SGRL under the 'issuer non-cooperating'
category as SGRL had failed to provide information for monitoring
of the rating exercise and had not paid the surveillance fees for
the rating exercise as agreed to in its Rating Agreement. SGRL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and email
dated May 20, 2022, May 24, 2022, and June 6, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers
At the time of last rating on August 23, 2021, the following were
the rating strengths and weaknesses (updated for the information
available from stock exchange):
Key Rating Weaknesses
* On-Going delay/defaults in debt servicing: As per the Audit
Report of FY22 there are Defaults. The audit reports mention that 3
Lender banks and a financial institution have outstanding dues
classified as non-performing assets, amounting to INR380.96 Crore
including amount of bank guarantees invoked, interest and penal
interest of INR96.92 Crore as per the records of the Company,
classified as Non-performing assets. The said dues are after
adjustment of fixed deposits of INR14.60 Crore, including interest
thereon, kept as margin against bank guarantees with Axis Bank
Ltd., due to defaults in the repayment and non-compliance of the
terms and conditions.
* Update on performance in FY22: The financial performance of the
company has deteriorated in FY22. The total operating income of the
company increased by 20.5% to INR5269.52 crore as compared to
INR4371.05 crore in FY21. The improvement was due to increased
demand and prices of gold. SGRL incurred net loss of INR96.17 crore
in FY22 (as compared to net loss of INR245.69 crore in FY21).
Overall gearing of the company deteriorated further due to erosion
of net-worth on account of huge loss incurred in FY22.
Analytical approach: Consolidated
CARE has considered the consolidated financials of SGRL for
analytical purposes owing to financial and operational linkages
between the company and its subsidiaries. The consolidated
financials include the financials of two wholly owned subsidiaries
namely Shirpur Gold Company Pvt. Ltd., Singapore and Zee Gold DMCC,
Dubai.
Shirpur Gold Refinery Limited (SGRL) is a part of Essel Group since
December 2008, post takeover of assets from ARCIL auction. The
company is engaged in gold refining with an installed capacity to
refine 217 MT per annum of gold. Its refinery is located at
Shirpur, Dhule district, Maharashtra. The company is also engaged
in bullion trading, manufacturing and sale of gold coins, gold bars
and gold jewelry both in the domestic and international markets.
The company's products namely Gold Bars and Gold Jewelry are well
established in the market and are sold under the brand name 'Zee
Gold'. As on March 31, 2019, SGRL has one wholly owned subsidiary
namely Zee Gold DMCC (ZGD), Dubai and two step down foreign
subsidiaries namely Precious Metals Mining and Refining Limited
(PMMRL), Papua New Guinea and Metalli Exploration and Mining, Mali.
Shirpur Gold Company Private Limited (SGM), Singapore ceased to
exist with effect from March 07, 2019 and loss (Rs.1.96 crore);
being investment value in such subsidiary has been written off.
SUNSHINE CONVEYORS: ICRA Keeps B Debt Rating in Not Cooperating
---------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Sunshine
Conveyors Private Limited in the 'Issuer Not Cooperating' category.
The ratings are denoted as "[ICRA]B(Stable)/ [ICRA]A4 ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 2.50 [ICRA]B (Stable) ISSUER NOT
COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Fund-based- 1.00 [ICRA]B (Stable) ISSUER NOT
Limit proposed COOPERATING; Rating continues
cash credit to remain under 'Issuer Not
limit Cooperating' category
Fund-based- 1.35 [ICRA]B (Stable) ISSUER NOT
limit Term COOPERATING; Rating continues
loans to remain under 'Issuer Not
Cooperating' category
Non-fund- 3.50 [ICRA]B (Stable) ISSUER NOT
based limit COOPERATING; Rating continues
Bank Guarantee to remain under 'Issuer Not
Cooperating' category
Proposed- 1.00 [ICRA]B (Stable) ISSUER NOT
Bank Guarantee COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Unallocated limit 0.65 [ICRA]B (Stable)/[ICRA]A4
ISSUER NOT COOPERATING;
Rating continues to remain
under the 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its Further, ICRA has been sending repeated reminders to
the entity for payment of surveillance fee that became due, but
despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Incorporated in 2002, SCPL is involved in manufacturing rubber
conveyor belts. The company has its facility in Rajnandgaon in
Chhattisgarh. The clientele of the company mainly comprises public
sector entities across the country.
TIRUPATI TRADING: CARE Keeps B- Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Tirupati
Trading Corporation (TTC) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated June 16, 2021,
placed the rating(s) of TTC under the 'issuer non-cooperating'
category as TTC had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. TTC continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 2, 2022, May 12, 2022, May 22, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Delhi based Tirupati Trading Corporation (TTC) was established in
October, 2004 as a partnership firm and is currently managed by Mr.
Vivek Bansal and Mrs. Parul Bansal sharing profit and losses
equally. The firm is engaged in the wholesale trading of food
grains like rice, pulses, maize, etc. to exporting companies
directly and through commission agents.
VIJAYSHREE ELECTROMECH: ICRA Keeps B+ Rating in Not Cooperating
---------------------------------------------------------------
ICRA has retained the Long-Term and Short-Term ratings of
Vijayshree Electromech Private Limited in the 'Issuer Not
Cooperating' category. The ratings are denoted as
"[ICRA]B+(Stable)/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 5.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Short Term- 1.98 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
Other to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Vijayshree Electromech Pvt Ltd. (VEPL) is one of the major
contractors for electrical work to be executed in major
infrastructure projects undertaken by government bodies. It was
established in 1991 as a partnership firm and later incorporated as
a private limited company in 2004. The business is managed
primarily by directors Mr. Shukhlal Sheladia and Mr. Mansukh
Dhanani having wide experience in the field. The company is a
government certified 'AA Class' electrical contractor and holds
requisite licenses to qualify and bid for the Government projects.
It also undertakes the electrical work on sub contract basis from
other approved R & B government contractors who are awarded
construction contracts.
=====================
N E W Z E A L A N D
=====================
BASELINE CIVIL: Court to Hear Wind-Up Petition on Aug. 4
--------------------------------------------------------
A petition to wind up the operations of Baseline Civil Limited will
be heard before the High Court at Christchurch on Aug. 4, 2022, at
10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on May 31, 2022.
The Petitioner's solicitor is:
Jess Thomson
Inland Revenue
Legal Services
PO Box 1782
Christchurch 8140
C & L TEDDY: Creditors' Proofs of Debt Due on Aug. 26
-----------------------------------------------------
Creditors of C & L Teddy Limited are required to file their proofs
of debt by Aug. 26, 2022, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on July 26, 2022.
The company's liquidator is:
Hamish Pryde
CS Insolvency
c/- Coombe Smith (PN) Limited
168 Broadway Avenue (PO Box 788)
Palmerston North
GENETIC DEVELOPMENT: Court to Hear Wind-Up Petition on Sept. 5
--------------------------------------------------------------
A petition to wind up the operations of Genetic Development (NZ)
Exports Limited Partnership will be heard before the High Court at
Hamilton on Sept. 5, 2022, at 10:45 a.m.
Armer Farms (N.I.) Limited filed the petition against the company
on June 20, 2022.
The Petitioner's solicitor is:
Thomas Refoy-Butler
Mackenzie Elvin Law
44 Brown Street
Tauranga 3143
HK CUISINE: Creditors' Proofs of Debt Due on Sept. 22
-----------------------------------------------------
Creditors of HK Cuisine Group Limited and LGZ Queen Street Limited
are required to file their proofs of debt by Sept. 22, 2022, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on July 27, 2022.
The company's liquidators are:
Christopher Carey McCullagh
Stephen Mark Lawrence
PKF Corporate
PO Box 3678
Auckland 1140
KOVA LIMITED: Creditors' Proofs of Debt Due on Aug. 26
------------------------------------------------------
Creditors of Kova Limited are required to file their proofs of debt
by Aug. 26, 2022, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on July 25, 2022.
The company's liquidators are:
R. Mason-Thomas
Meltzer Mason, Chartered Accountants
PO Box 6302
Victoria Street West
Auckland 1141
YABONZA GROUP: First Creditors' Meeting Set for Aug. 5
------------------------------------------------------
A first meeting of the creditors in the proceedings of Yabonza
Group Pty Ltd will be held on Aug. 5, 2022, at 10:00 a.m. via
Microsoft Teams.
Andrew McCabe and Joseph Hayes of Wexted Advisors were appointed as
administrators of the company on July 26, 2022.
===============
P A K I S T A N
===============
[*] PAKISTAN: Small Auto Parts Makers Go Bankrupt
-------------------------------------------------
The Express Tribune reports that auto parts manufacturers have said
that they are facing the worst crisis in history as small units in
the industry are going bankrupt because of the domino effect of
dollarisation - spiralling inflation, rising freight rates,
escalating utility tariffs, mounting bank interest, skyrocketing
material cost and working capital crunch.
These views were expressed by the speakers at a seminar organised
by the Pakistan Association of Automotive Parts and Accessories
Manufacturers (Paapam), the report says.
It was attended by a large number of association members, who were
in full agreement that it was the worst crisis in the history of
Pakistan's auto industry.
There was discussion on the current economic situation, especially
the freezing of major cost elements by the original equipment
manufacturers (OEMs), which had become a burning issue for all the
parts makers, according to the report.
All fears of the association members revolved around a single
point, which was how the auto parts industry could survive in the
current circumstances because the entire sector was in
a gridlock.
The Express Tribune says Paapam Chairman Abdur Razzaq Gauhar and
Senior Vice Chairman Abdul Rehman Aizaz asked the OEMs (automakers)
to justify their unwillingness to accept the request of vendors
about better profit margins, instead of freezing them, in the wake
of rising input costs.
Association members called for giving compensation for the increase
in costs that could not be recovered through the meagre profit
margins, which had been frozen for the past
many years.
They unanimously sought urgent support from the automotive
manufacturers (OEMs) who, they said, had been supplied high quality
parts by all Paapam members at reasonable prices, the report
relays.
The Express Tribune relates that seminar participants conveyed to
the OEMs that unless they supported the auto parts makers at the
current critical juncture through adequate compensation to offset
the impact of hyperinflation, rupee devaluation, increase in
freight, utilities, interest and material costs, and paucity of
working capital, their production lines would come to a complete
halt.
Consequently, the OEMs' assembly lines may shut down and the worst
case scenario could be that the automakers may have to import auto
parts at exorbitant prices on account of heavy freight costs and
high duties, The Express Tribune relays.
Paapam members demanded immediate increase in their margins, the
report notes.
*********
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
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*** End of Transmission ***