/raid1/www/Hosts/bankrupt/TCRAP_Public/220909.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Friday, September 9, 2022, Vol. 25, No. 175
Headlines
A U S T R A L I A
BASSLINK GROUP: APA Group Preferred Bidder for Interconnector
BOOKS & GIFTS: First Creditors' Meeting Set for Sept. 13
GRIFFIN COAL: West Australian Coal Mine Teeters on the Brink
PERTH CONTAINER: First Creditors' Meeting Set for Sept. 14
PRIMO COMMERCIAL: First Creditors' Meeting Set for Sept. 19
PRINT RITE: First Creditors' Meeting Set for Sept. 14
TAURUS 2022-1 TRUST: Moody's Assigns (P)Ba2 Rating to Cl. F Notes
THREE'S A CROWD: Second Creditors' Meeting Set for Sept. 15
TRITON BOND 2022-3: S&P Assigns B(sf) Rating on Class F Notes
C H I N A
CHINA EVERGRANDE: State Firms Buy $1.1BB Holding in Shengjing Bank
CHONGQING HECHUAN: Fitch Affirms BB IDR & Then Withdraws Ratings
HENGYANG HONGXIANG: Fitch Withdraws 'BB+' IDR, Outlook Stable
LOGAN GROUP: Drafts Plan to Restructure US$6BB of Offshore Debt
SUNAC CHINA: Court to Hear Winding Up Petition on Nov. 16
H O N G K O N G
DEER INVESTMENT: Fitch Assigns 'B' Foreign Currency IDR
I N D I A
A H MALLICK: CARE Keeps D Debt Ratings in Not Cooperating
ADANI GROUP: CreditSights Finds Errors in Debt Report on Two Units
ADARSH BUILDSTATE: Insolvency Resolution Process Case Summary
AJANTA OFFSET: Liquidation Process Case Summary
ATS INFRABUILD: CARE Lowers Rating on INR135cr NCD to D
AVATHERA PHARMA: Insolvency Resolution Process Case Summary
BAOSTEEL ENGINEERING: Voluntary Liquidation Process Case Summary
CFC CARRIERS: CARE Withdraws D Rating on Long Term Facilities
DIGITAL MICRON: Liquidation Process Case Summary
DOLLEX AGROTECH: CARE Withdraws D Rating on Long Term Facilities
EFFULGENCE TRADING: CARE Keeps D Debt Ratings in Not Cooperating
ELECTRO TEKNICA: CARE Lowers Rating on INR1.50cr LT Loan to C
G.R MULTIFLEX: CARE Keeps D Debt Rating in Not Cooperating
GEM GRANITES: CARE Keeps D Debt Ratings in Not Cooperating
GILL ACQUA: Insolvency Resolution Process Case Summary
GOURAV POULTRIES: CARE Keeps C Debt Rating in Not Cooperating
HARIHAR INTERNATIONAL: Insolvency Resolution Process Case Summary
HYPER TECHNO: Insolvency Resolution Process Case Summary
JAGAT REALCON: Insolvency Resolution Process Case Summary
JAI VENAE: CARE Keeps D Debt Rating in Not Cooperating Category
JAIPUR DREAM: Insolvency Resolution Process Case Summary
JPM EXPORTS: CARE Keeps D Debt Ratings in Not Cooperating
LIBERTY OIL: Ind-Ra Keeps 'D' Issuer Rating in Non-Cooperating
M.G. ASSOCIATES: CARE Keeps C Debt Rating in Not Cooperating
MBG COMMODITIES: Ind-Ra Cuts LongTerm Issuer Rating to 'BB+'
MEWAR UNIVERSITY: CARE Keeps D Debt Rating in Not Cooperating
MILANI TECNO: Insolvency Resolution Process Case Summary
MOBILESTORE SERVICES: CARE Keeps D Debt Ratings in Not Cooperating
NAKKHEERAN PUBLICATIONS: CARE Keeps D Ratings in Not Cooperating
NARWAL HATCHERIES: CARE Keeps B- Debt Rating in Not Cooperating
NEPTUNE VENTURES: Insolvency Resolution Process Case Summary
NEW SILK: Voluntary Liquidation Process Case Summary
OMVISHWA GRAINS: CARE Lowers Rating on INR7cr LT Loan to D
PELLET ENERGY: Liquidation Process Case Summary
PRAKASH CORRUGATED: CARE Keeps D Debt Ratings in Not Cooperating
PRASHANTI CORPORATION: Ind-Ra Assigns 'BB' LongTerm Issuer Rating
PRECISION MACHINES: Ind-Ra Affirms 'BB+' LongTerm Issuer Rating
PUNJ SECURITY: Insolvency Resolution Process Case Summary
RANA STEELS: CARE Keeps D Debt Ratings in Not Cooperating
RECMET ALLOYS: CARE Keeps C Debt Rating in Not Cooperating
RICE TECH: CARE Keeps D Debt Rating in Not Cooperating Category
RICHFEEL HEALTH: Insolvency Resolution Process Case Summary
SIGMA CHEMTRADE: Insolvency Resolution Process Case Summary
SORT INDIA: Liquidation Process Case Summary
SPRING PROJECTS: Voluntary Liquidation Process Case Summary
TECHNO SATCOMM: CARE Keeps D Debt Ratings in Not Cooperating
THREE STAR: CARE Keeps C Debt Rating in Not Cooperating Category
TIRUPATI CARBONS: Ind-Ra Affirms 'B+' Long-Term Issuer Rating
TOKAI ENGINEERING: CARE Keeps C Debt Rating in Not Cooperating
VANTAGE BUILDWELL: Voluntary Liquidation Process Case Summary
VIBGYOR RETAIL: Insolvency Resolution Process Case Summary
VIKAS PROPPANT: Insolvency Resolution Process Case Summary
VR FOUNDRIES: Ind-Ra Hikes LT Issuer Rating to BB, Outlook Stable
WONDER PEAK: Voluntary Liquidation Process Case Summary
ZAVERI CONSTRUCTIONS: Liquidation Process Case Summary
I N D O N E S I A
WIJAYA KARYA: Fitch Cuts IDRs to B+ & Then Withdraws Ratings
N E W Z E A L A N D
C J KEARNS: Creditors' Proofs of Debt Due on Oct. 19
CRAZY HORSE: Court to Hear Wind-Up Petition on Oct. 13
DD DRAINAGE: Court to Hear Wind-Up Petition on Sept. 15
JFC WATERPROOFER: Creditors' Proofs of Debt Due on Oct. 21
S I N G A P O R E
EVEREST SG: Creditors' Proofs of Debt Due on Oct. 7
JAQUAR AND COMPANY: Creditors' Proofs of Debt Due on Oct. 7
KINGSTON SG: Creditors' Proofs of Debt Due on Oct. 7
SHEN GLOBAL: Creditors' Proofs of Debt Due on Oct. 7
TERAS 336: Members' Final Meeting Set for Oct. 7
V I E T N A M
VIETNAM: Moody's Upgrades Issuer & Senior Unsecured Ratings to Ba2
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A U S T R A L I A
=================
BASSLINK GROUP: APA Group Preferred Bidder for Interconnector
-------------------------------------------------------------
Australian Financial Review reports that APA Group has inched into
the preferred bidder spot in bankrupt electricity interconnector
Basslink's sale, after squaring off against Merrick Howes' Aviron
Investment Management at binding bids last week.
Basslink connects Tasmania into the national electricity market.
According to AFR, receivers FTI Consulting said they considered
binding offers' deal structure and conditions precedent in taking
their pick.
"We are now moving to final documentation which includes agreeing
key operating agreements with stakeholders of Basslink and which
will also include a deed of company arrangement to effect the
restructuring being proposed to creditors for approval," FTI
Consulting's Vaughan Strawbridge said in a statement.
It's the outcome APA Group needed, but one that it had to fight for
much harder than expected.
AFR says Macquarie Capital-advised APA owned the debt and
enforcement rights and was arguably the natural owner, given its
position in Australia's energy market and ambition to step up in
the electricity sector to help drive and fund the transition to
renewable sources.
It picked up the secured debt in February, a few months after
Basslink went into administration, and appointed FTI as receiver
soon after. FTI ran a sale, and hired Houlihan Lokey to help with
the auction.
APA's recent financial results revealed it had spent AUD587.4
million on acquisitions and investments (Basslink) in the year to
June 30.
About Basslink
Basslink Group owns and operates the Basslink undersea power cable
between Tasmania and Victoria.
Basslink entered into voluntary administration and receivership on
Nov. 12, 2021.
BOOKS & GIFTS: First Creditors' Meeting Set for Sept. 13
--------------------------------------------------------
A first meeting of the creditors in the proceedings of:
- Books & Gifts Direct Pty Ltd;
- Books & Gifts Direct (Franchise) Pty Ltd;
- BGDSA Pty Ltd;
- BGDNSW Pty Ltd; and
- BGDVIC Pty Ltd
will be held on Sept. 13, 2022, at 10:00 a.m. via webinar
facilities only.
John McInerney and Philip Campbell-Wilson of Grant Thornton
Australia were appointed as administrators of the company on Sept.
1, 2022.
GRIFFIN COAL: West Australian Coal Mine Teeters on the Brink
------------------------------------------------------------
ABC News reports that the looming demise of a loss-making coal mine
in Western Australia is a microcosm of the industry's "dire"
prospects as a fuel for electricity amid the rampant rise of
renewable energy, an analyst said.
According to ABC News, expectations are growing that the Griffin
Coal mine near Collie, about 180km south of Perth, will be tipped
into receivership in coming days following years of heavy losses
believed to exceed more than $1 billion.
ABC News relates that lawyers for the Indian-owned mine have been
fighting in the West Australian Supreme Court to stop a bid by its
biggest customer, the Bluewaters power station, to take control of
the operation.
However, Griffin lawyer Konrad De Kerloy has acknowledged creditors
to the mine, including Indian bank ICICI, have already prepared a
draft receivership document.
In court earlier this week, he said the document was still subject
to "some negotiation" but the situation was "near to some form of
closure," the report relays.
ABC News says the apparent preparedness of Griffin to appoint
receivers brings to a head a long-running saga that has been
playing out ever since Indian interests acquired the operation from
the wreckage of fallen coal tycoon Ric Stowe's failed business
empire.
It may also head off moves to take control of the mine by
Bluewaters, which is owned by huge Japanese conglomerates Sumitomo
and Kansai but ultimately controlled by some of the most feared
activist investors on Wall Street.
Sitting behind Bluewaters are so-called vulture capital firms
including Elliott Management and Oaktree Capital, which have forged
a reputation for taking on some of the biggest companies in the
world, including BHP, according to the report.
Simon Nicholas, an analyst at the Institute for Energy Economics
and Financial Analysis, said the courtroom battle between the two
sides was a sideshow to the main event unfolding around them.
ABC News relates that Mr. Nicholas said regardless of who gained
control over Griffin, coal mining in WA was on borrowed time as the
state government wound down its coal-fired power stations and
customers turned away from fossil fuels.
Under an announcement in June, the West Australian government said
it would close its remaining coal plants by 2029, while it revealed
it would not agree to buy half the output from Bluewaters when
current contracts expired in 2025, the report recalls.
"It's always bad news for coal-fired power," the report quotes Mr.
Nicholas as saying. "We just don't see any good news, any
improvement to the long-term outlook anymore."
According to ABC News, Mr. Nicholas said Western Australia's coal
industry was particularly vulnerable to the rise of renewable
energy and the reduction in demand for coal-fired power because it
did not have access to export markets.
He noted this was in contrast to eastern states coal suppliers,
which had been making windfall profits in recent months after
Russia's invasion of Ukraine sent fossil fuel prices soaring.
Despite this, Mr. Nicholas said the long-term outlook for east
coast coal miners was not pretty, and that forecast falls in demand
for coal-fired power could accelerate given the high prices.
He said the West Australian example was of global significance.
"Western Australia is becoming a bit of a microcosm for the future
of coal," he said.
"Even a few, perhaps four or five years ago, if I'd suggested or
predicted that coal would fall out the WA power system this
quickly, well, I wouldn't have believed it myself, I don't think."
Last week, it emerged that Bluewaters was seeking to appoint a
controller to run the Griffin mine following months of failure by
the operation to supply contracted volumes of coal, ABC News
discloses.
About Griffin Coal
Based in Australia, The Griffin Coal Mining Company Pty Ltd --
http://www.griffincoal.com.au/-- is engaged in coal mining and
processing. Griffin Coal operates major mines in the Collie area,
approximately 220 kilometers south east of Perth. The Company is
producing more than three million tons of coal per year. Griffin
Coal has operations at Ewington Mine, Muja Mine and Buckingham
Mine.
PERTH CONTAINER: First Creditors' Meeting Set for Sept. 14
----------------------------------------------------------
A first meeting of the creditors in the proceedings of Perth
Container Services Pty Ltd will be held on Sept. 14, 2022, at 11:00
a.m. at the offices of BRI Ferrier at Level 4, 307 Queen Street in
Brisbane.
James Taplin and Stefan Dopking of BRI Ferrier were appointed as
administrators of the company on Sept. 5, 2022.
PRIMO COMMERCIAL: First Creditors' Meeting Set for Sept. 19
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of Primo
Commercial Pty Ltd will be held on Sept. 19, 2022, at 2:00 p.m. at
the offices of RSM Australia Partners at Equinox Building 4, Level
2, 70 Kent Street in Deakin.
Frank Lo Pilato of RSM Australia Partners was appointed as
administrator of the company on Sept. 7, 2022.
PRINT RITE: First Creditors' Meeting Set for Sept. 14
-----------------------------------------------------
A first meeting of the creditors in the proceedings of Print Rite
Australia Pty Ltd will be held on Sept. 14, 2022, at 11:00 via
teleconference only.
Kenneth Whittingham and Brett Stephen Lord of Kroll Advisory were
appointed as administrators of the company on Sept. 2, 2022.
TAURUS 2022-1 TRUST: Moody's Assigns (P)Ba2 Rating to Cl. F Notes
-----------------------------------------------------------------
Moody's Investors Service has assigned provisional ratings to notes
issued by BNY Trust Company of Australia Limited in its capacity as
the trustee of the Taurus 2022-1 Trust.
Issuer: Taurus 2022-1 Trust
AUD204.60 million Class A1 Notes, Assigned (P)Aaa (sf)
AUD28.00 million Class A2 Notes, Assigned (P)Aaa (sf)
AUD18.20 million Class B Notes, Assigned (P)Aa2 (sf)
AUD8.70 million Class C Notes, Assigned (P)A2 (sf)
AUD3.98 million Class D Notes, Assigned (P)Baa2 (sf)
AUD2.52 million Class E Notes, Assigned (P)Baa3 (sf)
AUD5.60 million Class F Notes, Assigned (P)Ba2 (sf)
The AUD8.40 million Class G Notes are not rated by Moody's.
Taurus 2022-1 Trust (Taurus 2022-1) transaction is a static cash
securitisation of consumer and commercial auto loan receivables
extended to prime borrowers in Australia by Taurus Finance Holdings
Pty Limited (Taurus, unrated). Taurus is a finance company that
originates retail auto loans and provides floorplan finance to
automotive dealers. Taurus was founded in 2016 and started
originating retail auto loans in October 2019. Taurus has
originated AUD463.4m of retail auto loans as of June 30, 2022.
RATINGS RATIONALE
The ratings take into account, among other factors, evaluation of
the underlying receivables and their expected performance,
evaluation of the capital structure and credit enhancement provided
to the notes, availability of excess spread over the life of the
transaction, the liquidity facility in the amount of 1.50% of the
rated notes balance subject to a floor of AUD330,000, the legal
structure, and the experience of Taurus as servicer.
According to Moody's, the transaction benefits from the prime
nature of the obligors and the strong historical performance of
Taurus' loan portfolio with delinquencies and losses lower than
comparable auto loan originators since October 2019. However, the
limited historical of the performance data, with just over two and
a half years of meaningful performance data available presents a
challenge as the future performance of auto loans could be subject
to greater variability than the current data indicates.
KEY PORTFOLIO AND STRUCTURAL FEATURES
Key structural features include:
Once step-down conditions are satisfied, all notes, excluding
Class G notes, will receive their pro-rata share of principal.
Step-down conditions include, among others, 30% subordination to
the Class A notes and no unreimbursed charge-offs.
A swap provided by National Australia Bank Limited
(Aa3/P-1/Aa2(cr)/P-1(cr)) will hedge the interest rate mismatch
between the assets bearing a fixed rate of interest, and floating
rate liabilities. The notional balance of the swap will follow a
schedule based on amortisation of the rated notes assuming no
prepayments.
BNY Trust Company of Australia Limited (BNY), a wholly owned
subsidiary of The Bank of New York Mellon (Aa1/P-1) acts as the
back-up servicer. If Taurus is terminated as servicer, BNY will
take over the servicing role in accordance with the standby
servicing deed and its back-up servicing plan.
KEY MODEL AND PORTFOLIO ASSUMPTIONS
Moody's base case assumptions are a mean default rate of 3.75%, a
recovery rate of 30.0%, and a Aaa portfolio credit enhancement
("PCE") of 18.00%. The expected defaults and recoveries capture
Moody's expectations of performance considering the current
economic outlook, while the PCE captures the loss wMoody's expect
the portfolio to suffer in the event of a severe recession
scenario. Expected defaults and PCE are parameters used by Moody's
to calibrate its lognormal portfolio default distribution curve and
to associate a probability with each potential future default
scenario in its ABSROM cash flow model.
Moody's assumed mean default rate is stressed compared to observed
levels of default, with only four loans written off between October
2019 and June 2022. To address the limited performance history,
Moody's have benchmarked Taurus's portfolio performance, portfolio
characteristics, underwriting and credit policies to comparable
originators. Moody's have also overlaid additional stresses into
Moody's loss assumptions to account for the limited origination and
operational history.
The PCE of 18.00% is broadly in line with other Australian auto ABS
deals and is based on Moody's assessment of the pool taking into
account (i) historical data variability, (ii) quantity, quality and
relevance of historical performance data, (iii) originator quality,
(iii) servicer quality, (iv) certain pool characteristics, such as
asset concentration.
Key pool features are as follows:
- The pool consists of 97.8% consumer loans and 2.2% of commercial
loans.
- Interest rates in the portfolio range from 3.5% to 14.4%, with a
weighted average interest rate of 7.6%.
- The weighted average seasoning of the portfolio is 9.0 months,
while the weighted average remaining term of the portfolio is 58.9
months.
Methodology Underlying the Rating Action
The principal methodology used in these ratings was "Moody's Global
Approach to Rating Auto Loan- and Lease-Backed ABS" published in
July 2022.
Factors that would lead to an upgrade or downgrade of the ratings:
Up
Levels of credit protection that are greater than necessary to
protect investors against current expectations of loss could lead
to an upgrade of the ratings. Moody's current expectations of loss
could be better than its original expectations because of fewer
defaults by underlying obligors. The Australian job market is a
primary driver of performance.
Down
Levels of credit protection that are insufficient to protect
investors against current expectations of loss could lead to a
downgrade of the ratings. Moody's current expectations of loss
could be worse than its original expectations because of more
defaults by underlying obligors. The Australian job market is a
primary driver of performance. Other reasons for worse performance
than Moody's expects include poor servicing, error on the part of
transaction parties, a deterioration in credit quality of
transaction counterparties, lack of transactional governance and
fraud.
THREE'S A CROWD: Second Creditors' Meeting Set for Sept. 15
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Three's A Crowd
Group Pty Limited (trading as Quick Brown Fox) has been set for
Sept. 15, 2022, at 10:00 a.m. at the offices of O'Brien Palmer at
Level 9, 66 Clarence Street in Sydney.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Sept. 14, 2022, at 4:00 p.m.
Liam Bailey and Daniel Frisken of O'Brien Palmer were appointed as
administrators of the company on Aug. 11, 2022.
TRITON BOND 2022-3: S&P Assigns B(sf) Rating on Class F Notes
-------------------------------------------------------------
S&P Global Ratings assigned its ratings to nine classes of prime
residential mortgage-backed securities (RMBS) issued by Perpetual
Corporate Trust Ltd. as trustee for Triton Bond Trust 2022-3 Series
1.
The ratings reflect:
-- S&P's view of the credit risk of the underlying collateral
portfolio, including the fact that this is a closed portfolio,
which means no further loans will be assigned to the trust after
the closing date.
-- S&P's view that the credit support is sufficient to withstand
the stresses we apply. This credit support comprises mortgage
lenders insurance covering 25.0% of the loans in the portfolio as
well as note subordination for all rated notes.
-- S&P's expectation that the various mechanisms to support
liquidity within the transaction, including an amortizing liquidity
facility equal to 1.0% of the invested amount of all rated and
class G notes, subject to a floor of 0.10% of the initial invested
amount of all notes, principal draws, and a loss reserve that
builds from excess spread, are sufficient under its stress
assumptions to ensure timely payment of interest.
-- The extraordinary expense reserve of A$150,000, funded from day
one by Columbus Capital Pty Ltd., available to meet extraordinary
expenses. The reserve will be topped up via excess spread if
drawn.
-- The benefit of a fixed- to floating-rate interest-rate swap
provided by National Australia Bank Ltd. to hedge the mismatch
between receipts from any fixed-rate mortgage loans and the
variable-rate RMBS, should any be entered into after transaction
close.
Ratings Assigned
Triton Bond Trust 2022-3 Series 1
Class A1-MM, A$316.00 million: AAA (sf)
Class A1-AU, A$619.00 million: AAA (sf)
Class A2, A$77.00 million: AAA (sf)
Class AB, A$30.80 million: AAA (sf)
Class B, A$19.80 million: AA (sf)
Class C, A$15.40 million: A (sf)
Class D, A$9.90 million: BBB (sf)
Class E, A$5.50 million: BB (sf)
Class F, A$3.08 million: B (sf)
Class G, A$3.52 million: Not rated
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C H I N A
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CHINA EVERGRANDE: State Firms Buy $1.1BB Holding in Shengjing Bank
------------------------------------------------------------------
Reuters reports that state-owned companies of the Chinese
northestern city of Shenyang bought China Evergrande Group's
shareholding in Shengjing Bank in an auction for CNY7.3 billion
(US$1.05 billion), Alibaba auction platform showed on Sept. 7.
In July, Evergrande, the world's most indebted property developer,
said its unit, Evergrande Nanchang, had been ordered to pay an
unamed guarantor CNY7.3 billion for failing to honour debt
obligations.
The unit has provided counter-guarantees in the form of a pledge of
a total of 1.3 billion shares that it held in Shenyang-based
Shengjing Bank, the firm said at the time.
According to the auction platform, the 1.3 billion shares in
Shengjing Bank owned by Evergrande Nanchang were auctioned by
Shenyang Intermediate People's Court at an opening bidding price of
CNY7.3 billion, Reuters relays.
Reuters says the winner, a group of seven companies including
Shenyang Heping District State-owned Assets Management Company and
Shenyang Hi Tech Development Investment Holding Group, was the only
bidder in the auction that closed on Sept. 7.
Saddled with more than $300 billion in liabilities, Evergrande is
struggling to repay its many creditors through asset sales and debt
restructuring.
The 1.3 billion shares account for a 14.6% stake in Shenjiang Bank,
Reuters notes. Evergrande, which held 36.4% in the bank at the end
of 2020, has been selling down its holdings in the bank since it
slid into a debt crisis in the second half of last year.
About China Evergrande
China Evergrande Group is an integrated residential property
developer. The Company, through its subsidiaries, operates in
property development, investment, management, finance, internet,
health, culture, and tourism markets.
Evergrande had CNY1.97 trillion (US$311 billion) of liabilities at
the end of June 2021. Once China's biggest developer by sales,
Evergrande fell into distress as cash dried up and the group
overstretched itself on borrowings and ventures into car
manufacturing.
Evergrande hired outside financial advisers Houlihan Lokey and
Admiralty Harbour Capital in September 2021 to engage with
creditors soon after it ran into a liquidity squeeze. It has since
worked with more advisers in the past two months by turning to
China International Capital Corp, BOCI Asia and Zhong Lun Law Firm
on its debt workout plan.
As reported in the Troubled Company Reporter-Asia Pacific in June
2022, Fitch Ratings has withdrawn the Long-Term Foreign-Currency
Issuer Default Ratings (IDR) of 'RD' on Chinese homebuilder China
Evergrande Group and its subsidiaries, Hengda Real Estate Group
Co., Ltd and Tianji Holding Limited. Fitch has also withdrawn the
senior unsecured ratings of Evergrande and Tianji of 'C', with a
Recovery Rating of 'RR6', as well as the rating on the
Tianji-guaranteed senior unsecured notes issued by Scenery Journey
Limited of 'C', with a Recovery Rating of 'RR6'. Fitch has
withdrawn the ratings as Evergrande and its subsidiaries have
chosen to stop participating in the rating process. Therefore,
Fitch will no longer have sufficient information to maintain the
ratings. Accordingly, Fitch will no longer provide ratings or
analytical coverage for Evergrande and its subsidiaries.
CHONGQING HECHUAN: Fitch Affirms BB IDR & Then Withdraws Ratings
----------------------------------------------------------------
Fitch Ratings has affirmed China-based Chongqing Hechuan City
Construction Investment (Group) Co., Ltd's (HCCT) Long-Term
Foreign- and Local-Currency Issuer Default Ratings (IDR) at 'BB'
with a Stable Outlook. At the same time, Fitch has withdrawn all
the ratings.
Fitch has chosen to withdraw the ratings on HCCT for commercial
reasons. Accordingly, Fitch will no longer provide ratings or
analytical coverage for HCCT.
KEY RATING DRIVERS
'Very Strong' Status, Ownership and Control: HCCT was established
as a limited liability company under China's company law. The
district government maintains full control over the company by
appointing its senior management, approving its budget and
investment plans, and performing annual assessments through the
Chongqing Hechuan District State-owned Assets Management Centre.
'Strong' Support Record: The Hechuan government injected several
important local GREs, with total assets of around CNY37 billion,
into HCCT in 2016. This made HCCT the district's primary
urban-development platform and largest government-related entity
(GRE) by total assets. The local government has also provided HCCT
with annual operating subsidies and substantial capital injections
to relieve its debt burden and refinancing risk.
'Moderate' Socio-Political Implications of Default: HCCT is engaged
in infrastructure construction, primary-land development and
wholesale commodity trading in Hechuan district. Fitch assesses the
socio-political implications of a default to be 'Moderate', as its
part of its projects are undertaken by subsidiaries. Hence, a HCCT
default would not halt its services totally as the local government
can appoint other entities to perform part of its functions in the
interim.
'Very Strong' Financial Implications of Default: HCCT and its
subsidiaries are frequent bond issuers in the domestic and offshore
markets, with most of their debt raised for key local
infrastructure projects of a public-service nature. We believe a
default would severely damage the local government's reputation and
constrain its financing capability.
'b' Standalone Credit Profile: We assess HCCT's revenue
defensibility and operating risk at 'Midrange', as the company is
Hechuan district's flagship urban developer with a stable cost
structure and an adequate supply of resources in the region. We
assess its financial profile at 'Weaker' due to its high net
adjusted debt/EBITDA and we expect this to remain high at around
48x by 2025 under our rating-case scenario, although the company
has received continuous capital injections from the local
government that supplement its debt-servicing sources and mitigate
refinancing risk.
DERIVATION SUMMARY
HCCT's IDRs are derived from the four factors under the
Government-Related Entities Rating Criteria and the Standalone
Credit Profile under Fitch's Public Sector, Revenue-Supported
Entities Rating Criteria.
ISSUER PROFILE
HCCT is the largest GRE by total assets in Chongqing Hechuan
district in China. The entity was established by the Hechuan
district government in 2002 to engage in primary land development,
agent construction of key infrastructure including city roads,
bridges and social housing, to provide water supply and to
undertake commodity trading.
HENGYANG HONGXIANG: Fitch Withdraws 'BB+' IDR, Outlook Stable
-------------------------------------------------------------
Fitch Rating has withdrawn China-based HengYang HongXiang
State-owned Investment (Holding) Group Ltd.'s (HYHX) Long-Term
Foreign- and Local-Currency Issuer Default Ratings (IDR) of 'BB+'
with a Stable Outlook.
Fitch is withdrawing the ratings as HYHX has stopped participating
in the rating process. Therefore, Fitch no longer has sufficient
information to maintain the ratings. Accordingly, Fitch will no
longer provide ratings or analytical coverage for HYHX.
KEY RATING DRIVERS
Not applicable as the ratings have been withdrawn.
RATING SENSITIVITIES
Not applicable as the ratings have been withdrawn.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
Following the withdrawal of HYHX's ratings, Fitch will no longer
provide the associated ESG Relevance Scores.
RATING ACTIONS
Rating Prior
------ -----
HengYang HongXiang
State-owned Investment
(Holding) Group Ltd. LT IDR WD Withdrawn BB+
LC LT IDR WD Withdrawn BB+
LOGAN GROUP: Drafts Plan to Restructure US$6BB of Offshore Debt
---------------------------------------------------------------
Bloomberg News reports that Logan Group has briefed some creditors
about a draft proposal to restructure more than US$6 billion in
offshore borrowings, as indebted developers seek solutions after a
series of defaults.
Bloomberg relates that the proposal would include public bonds plus
private notes and some syndicated loans, according to people
familiar with the matter. The plan would extend the average term of
Logan's debt to slightly more than five years, said one of the
people, who asked not to be named as the matter is private.
Logan's dollar bonds due in the next three years are indicated at
below 17 cents on the dollar, according to prices compiled by
Bloomberg.
China's 27th-largest builder by contracted sales is among many in
the sector struggling with a cash crunch amid slumping home sales
worsened by the country's rigid Covid policies, the report notes.
Once considered a higher-quality name with several offshore
projects, Logan's looming restructuring has become combative as
some dollar bondholders organised and issued demands.
Under Logan's draft proposal, the firm's public notes will be fully
paid in 6.75 years with the first batch of principal payments
occurring 33 months after a restructuring becomes effective, said
the people, Bloomberg relays.
Its privately placed bonds are expected to be paid off in five
years, with the first principal payments made 30 months after
restructuring, they said, adding that Logan also intends to use
offshore assets to back the debt overhaul.
Bloomberg relates that the draft proposal remains in discussions
and is subject to revision, according to the people. Logan
representatives declined to comment. REDD previously reported some
of the details.
According to Bloomberg, Logan's move comes as creditors are looking
increasingly impatient with Chinese developers' generally slow
progress on cleaning up their offshore debt mess after payment
failures.
Only a handful of firms have unveiled relatively comprehensive
restructuring plans for such liabilities so far, including one by
Guangzhou R&F Properties to extend all its dollar bonds, the report
states.
Some of those who have yet to do so, from China Evergrande Group to
Sunac China Holdings, are being taken to court as creditors demand
winding up their businesses if they do not get repaid.
Bloomberg adds that Logan has suspended dollar bond payments while
seeking a holistic management of offshore debt. Its financial
adviser, Haitong International Securities Group, earlier said the
developer is planning for a so-called scheme of arrangement to
handle its debt.
About Logan Group
Logan Group Company Limited, an investment holding company,
operates as an integrated property developer in the People's
Republic of China. It operates through four segments: Property
Development, Property Leasing, Construction and Decoration
Contracts and Others, and Urban Redevelopment Business. The
Property Development segment develops and sells residential
properties and retail shops; and sells land held for development.
The Property Leasing segment leases office units, retail shops, and
hotels. The Construction and Decoration Contracts and Others
segment constructs office premises and residential buildings; and
provides decoration services to external customers and interior
decoration services to property buyers. The Urban Redevelopment
Business segment sells land for urban redevelopment. Logan Group
Company Limited is a subsidiary of Junxi Investments Limited.
As reported in the Troubled Company Reporter-Asia Pacific on April
21, 2022, Fitch Ratings has withdrawn China-based homebuilder Logan
Group Company Limited's Long-Term Foreign- and Local-Currency
Issuer Default Ratings (IDRs) of 'CCC'. Fitch has also withdrawn
the senior unsecured rating and the rating on Logan's outstanding
US dollar senior notes of 'CCC', with a Recovery Rating of 'RR4'.
The 'CC' rating, with a Recovery Rating of 'RR6', on Logan's
subordinated perpetual capital securities has also been withdrawn.
Fitch is withdrawing the ratings as Logan has chosen to stop
participating in the rating process. Therefore, Fitch will no
longer have sufficient information to maintain the ratings.
Accordingly, Fitch will no longer provide ratings or analytical
coverage for Logan.
SUNAC CHINA: Court to Hear Winding Up Petition on Nov. 16
---------------------------------------------------------
Reuters reports that a winding-up petition has been filed against
cash-strapped property developer Sunac China at the Hong Kong High
Court, the judiciary's website showed.
Reuters says the firm is working to restructure its offshore debt
after missing some bond payments earlier this year, adding to a
wave of defaults in China's debt-laden property sector.
The petition was made by Chen Huaijun, according to the website,
and a hearing will be held on Nov. 16.
Further details about Chen Huaijun were not available and it was
not immediately possible for Reuters to make contact in order to
obtain comment.
It is the first winding-up petition known to have been filed
against Sunac, a top 3 property developer by sales last year, the
report notes.
According to Reuters, Sunac said the petition was the "radical
behavior" of a single creditor that would not have a material
impact on company's operation and debt restructuring.
The company will take all measures to defend itself against the
petition, it added.
About Sunac China
Sunac China Holdings Limited (SEHK:1918) --
http://www.sunac.com.cn/-- is principally engaged in the sales of
properties in the People's Republic of China. The Company operates
its business through two segments: Property Development and
Property Management and Others. The Company's subsidiaries include
Sunac Real Estate Investment Holdings Ltd., Qiwei Real Estate
Investment Holdings Ltd. and Yingzi Real Estate Investment Holdings
Ltd.
As reported in the Troubled Company Reporter-Asia Pacific on May
19, 2022, Moody's Investors Service has downgraded the corporate
family rating of Sunac China Holdings Limited to Ca from Caa1, and
the company's senior unsecured ratings to C from Caa2. The outlook
remains negative.
=================
H O N G K O N G
=================
DEER INVESTMENT: Fitch Assigns 'B' Foreign Currency IDR
-------------------------------------------------------
Fitch Ratings has assigned Deer Investment Holdings Limited a final
Long-Term Foreign-Currency Issuer Default Rating (IDR) of 'B'. The
Outlook is Stable.
The Carlyle Group Inc. (BBB+/Positive) has completed the
acquisition of HCP Global Limited through Deer, financed by a US
dollar term loan B and an equity contribution from Carlyle. Carlyle
entered into a binding agreement to acquire a 100% stake in HCP, a
China-based manufacturer of cosmetic packaging for beauty brands,
in May 2022.
The rating reflects HCP's adequate business profile, which is
characterised by long-term customer relationships with top global
beauty brands, a leading position in a niche market, recovering
demand in the beauty industry and geographical diversification.
High leverage after the transaction, a modest product range with
focus on skincare and colour cosmetics, rigid packaging and a small
scale are constraints on the rating.
KEY RATING DRIVERS
High Leverage: Fitch said, "We think Deer's high leverage after the
acquisition will be a key constraint on the rating until the
company deleverages. Fitch expects Deer's total debt/EBITDA to rise
to 7.4x by end-2022 before falling to below 6.0x by end-2023.
Deer's deleveraging capacity will be supported by a rebound in
revenue and profitability as the Covid-19 pandemic's impact eases.
However, there may be volatility and uncertainty over the recovery
in end-market demand, which could affect Deer's deleveraging
pace."
Improving Profitability; Challenges Remain: Fitch expects HCP's
EBITDA margin to rebound from the trough in 2021 as the beauty
industry recovers from Covid-19. However, there are increased
challenges and uncertainty in improving profitability under an
inflationary environment. In addition, sales to mainland Chinese
customers, which have lower margins, rose during the pandemic,
potentially leading to structurally lower margins. Greater clarity
over its profit recovery could lead to an improvement in the credit
profile.
Long-Term Customer Relationships: Fitch said, "We expect HCP's
long-term relationships with leading global brands with diverse
portfolios, including the two biggest customers, Estee Lauder and
L'Oreal, to mitigate the risk of customer concentration. The top-10
customers account for over 60% of its revenue. Customer orders
depend on market demand, but HCP has retained a stable share of its
key customers' business. We expect the company to continue
benefiting from cooperation with customers that are outperforming
the beauty industry."
Positive FCF: Fitch forecasts HCP's free cash flow (FCF) to turn
positive in 2023, supported by improved profitability and
moderating capex, which should provide deleveraging capacity.
Management has no plan for dividend payouts or acquisitions over
the next two years. The company has been FCF negative due to high
capex in 2019 and the Covid-19 impact in 2020-2021, but we expect
the trend to reverse as end-market demand recovers.
Recovery in End-Market Demand: HCP will benefit from a recovery in
the beauty industry following the decline caused by the Covid-19
pandemic. Fitch said, "We expect the colour cosmetic and skincare
industry to resume mid-to-high single-digit growth in sales over
the next five years, which will support strong demand for cosmetic
packaging."
HCP's geographically diversified revenue streams and manufacturing
bases will also help mitigate any impact from temporary Covid-19
disruptions in China as its non-Chinese manufacturing facilities
have spare capacity. Expanding its manufacturing capacity in China
will help HCP to take advantage of the faster growth in China's
beauty industry than in mature markets.
Leader in a Niche Market: HCP is the largest manufacturer in APAC
and second-largest globally in the beauty and skincare rigid
packaging industry. The company holds around 5% share in a highly
fragmented market with the top-five players making up less than 20%
of total market share.
Fitch said, "We expect the company's market position to be
supported by high barriers to entry and long-term relationships
with key customers. New entrants will not only require upfront
investment to set up production facilities but also need to go
through a rigorous supplier qualification process before they can
be qualified to become global suppliers for beauty brands."
DERIVATION SUMMARY
HCP is much smaller than higher-rated peers such as Smurfit Kappa
Group plc (BBB-/Stable), Berry Global Group, Inc. (BB+/Stable) and
Silgan Holdings Inc. (BB+/Stable). The company's business profile
is also weaker than that of higher-rated peers because of a more
limited product range and exposure to a more cyclical industry.
In comparison with peers in the 'B' rating category, HCP is exposed
to a more cyclical end-market of the beauty industry than Rimini
BidCo S.p.A. (B+/Stable), which generates over 60% of its revenue
from food and beverage. As a result, HCP has higher cash-flow and
profitability volatility than Rimini. We expect HCP's gross
leverage, measured by total debt/EBITDA, to be 5.0x-6.0x over the
next 12-18 months, which is higher than that of Rimini. The
one-notch rating difference reflects HCP's lower business stability
and the uncertainty over the pace of its margin recovery.
HCP has a smaller scale and narrower addressable market than Titan
Holdings II B.V. (B/Stable) but Titan's leverage is higher, at over
6.5x total debt/EBITDA by 2023.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer:
- Revenue to increase in the low teens in 2022, moderating to a
high single-digit percentage in 2025;
- EBITDA margin of 18% in 2022, improving to 23% by 2025;
- Annual capex of USD21 million-29 million in 2022-2025;
- No dividend in 2022-2025.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- A clear deleveraging commitment, with total debt/EBITDA below
5.0x or net debt/EBITDA below 4.5x on a sustained basis;
- Neutral to positive FCF on a sustained basis.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Total debt/EBITDA above 7.0x or net debt/EBITDA above 6.5x on a
sustained basis, for instance, due to negative FCF, or a more
aggressive financial policy or acquisition strategy than
communicated to Fitch;
- Sustained loss of market share due to, for instance, declining
share of wallet from key customers such as Estee Lauder or
L'Oreal;
- EBITDA/interest paid sustained below 2x.
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity: We expect Deer to have sufficient liquidity
following the acquisition and issuance of the term loan B. We
expect HCP's prior outstanding debt will be repaid upon completion
of the acquisition by Deer. Deer will rely on HCP's adequate cash
flow generation to fund its interest payments.
ISSUER PROFILE
Deer is an investment vehicle set up by Carlyle to acquire HCP.
=========
I N D I A
=========
A H MALLICK: CARE Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of A H Mallick
Agro Services & Cold Storage Private Limited (AHM) continues to
remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.52 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 0.26 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 22, 2021,
placed the rating(s) of AHM under the 'issuer non-cooperating'
category as AHM 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. AHM continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 8, 2022, May 18, 2022, May 28, 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).
Incorporated in January 2012, A. H. Mallick Agro Services and Cold
Storage Private Limited (AHM) was promoted by the Mallick family of
Hooghly, West Bengal to set up a cold storage facility at Hooghly,
West Bengal. After successfully setting up the cold storage
facility, the company has commenced its commercial operations from
March 2013. The company is engaged in the business of providing
cold storage facility primarily for potatoes and is operating with
a storage capacity of 15,650 metric ton (MT). This apart, the
company is in the potato trading business.
ADANI GROUP: CreditSights Finds Errors in Debt Report on Two Units
------------------------------------------------------------------
Reuters reports that Fitch Group unit CreditSights said it had
discovered calculation errors in its recent debt report on two
power and transmission companies controlled by India's richest
person, Gautam Adani, following a conversation with the
management.
CreditSights's report late last month calling the conglomerate
"deeply overleveraged" and flagging other risks had sent shares of
many Adani companies down, Reuters says.
According to Reuters, the debt research firm said in a report dated
Sept. 7 that it had spoken with Adani Group's finance and other
executives and reconciled some figures for Adani Transmission and
Adani Power.
"Management views that the group's leverage is at manageable
levels, and that its expansion plans have not been mainly debt
funded," CreditSights said about the group that has announced deals
worth billions of dollars this year alone.
For Adani Transmission, CreditSights corrected its earnings before
interest, tax and amortisation (EBITDA), or core profit, estimate
to INR52 billion ($652.45 million) from INR42 billion earlier. For
Adani Power, it corrected its gross debt estimate to INR489 billion
from INR582 billion.
It did not give the period for the estimates, Reuters notes.
"These corrections did not change our investment recommendations,"
CreditSights said, adding that it, however, did not have formal
recommendations on the two power and transmission companies.
The combined market value of the Adani Group's seven publicly
traded companies - flagship Adani Enterprises, Adani Wilmar, Adani
Ports, Adani Green Energy, Adani Transmission, Adani Total Gas and
Adani Power - has increased about tenfold in the past three years
to about $251 billion, according to Reuters.
ADARSH BUILDSTATE: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Adarsh Buildstate Limited
Registered address:
410, 4th Floor, Vatika Atrium
Block-B, Golf Course Road
Sector 53, Gurugram (Haryana) 122002
Other address:
4th Floor, 406, Elements Mall
DCM, Ajmer Road
Jaipur (Rajasthan) 302021
Insolvency Commencement Date: August 30, 2022
Court: National Company Law Tribunal, Chandigarh Bench
Estimated date of closure of
insolvency resolution process: February 25, 2023
(180 days from commencement)
Insolvency professional: Mr. Jai Prakash Rawat
Interim Resolution
Professional: Mr. Jai Prakash Rawat
22-B, New Colony
Chandni Chowk, Jhotwara
Jaipur, Rajasthan 302012
E-mail: ipjprawat@gmail.com
cirp.abl@gmail.com
Classes of creditors: Home Buyers under Real Estate Project
Insolvency
Professionals
Representative of
Creditors in a class: Mrs. Garima Diggiwal
91, Moji Colony
Malviya Nagar, Jaipur
Rajasthan 302017
Mr. Sunil Kumar
4/46, KCC Nagar
Ajmer Road, Hanuman Mandir
Near Sector 4 Park
Jaipur, Rajasthan 302021
Mr. Umang Jain
380, Gayatri Nagar A
Maharani Farm, Durgapura
Near IHITC, Jaipur
Rajasthan 302018
Last date for
submission of claims: September 13, 2022
AJANTA OFFSET: Liquidation Process Case Summary
-----------------------------------------------
Debtor: Ajanta Offset and Packaging Limited
Madani Hall 1, Bahadur Shah Zafar Marg
New Delhi DL 110002
Liquidation Commencement Date: August 18, 2022
Court: National Company Law Tribunal, New Delhi Bench, Court IV
Date of closure of
insolvency resolution process: August 17, 2022
Insolvency professional: Satya Narayana Guddeti
Interim Resolution
Professional: Satya Narayana Guddeti
Plot No. 23 First Floor
Durganagar Colony
Punjagutta, West Merredpally
Telangana 500082
E-mail: gsnhyd@rediffmail.com
- and -
Flat No. C S-14, C-Floor
Ansal Plaza, Vaishali
Ghaziabad, Uttar Pradesh 201010
E-mail: ip.ajantaoffset@gmail.com
Last date for
submission of claims: September 16, 2022
ATS INFRABUILD: CARE Lowers Rating on INR135cr NCD to D
-------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of ATS
Infrabuild Pvt Ltd (AIPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non-Convertible 135.00 CARE D Revised from CARE BB-;
Debentures Stable
Detailed Rationale & Key Rating Drivers
The rating has been revised on account of non-payment of NCDs
principal amount and redemption premium due on June 11, 2022 to the
investors who have not given their positive consent for the
roll-over by period of two year to Jun 11, 2024.
Rating sensitivities
Positive:
* Timely repayment of its debt on timely basis
Detailed description of the key rating drivers:
Key Rating Weaknesses
* Default s in servicing of debt obligations: There were delays in
repayment of NCD's principal amount and redemption premium due on
June 11, 2022 to the investor who have not given their positive
consent for the roll-over of the NCD for period of two years to Jun
11, 2024. AIPL has applied for extension of final maturity date of
NCDs from June 11, 2022 to June 11, 2024. Further, company has
received consent on June 09, 2022 for extension from 76.67% of the
investors but remaining investors didn't given their positive
consent for the roll-over and redemption of NCDs.
* Physical status of the projects: AIPL is developing CASA Espana
project in two phases with total saleable area of 26 lsf. Phase 1
is in advance stage of completion as company has already incurred
80% of the total cost. In phase 1 company has already provided
possession for 4, 7, 8, 9 & 10th tower out of total 11 towers and
AIPL has applied for OC of 11th tower. AIPL is projecting to
complete the construction for tower 2 by December 2022, tower 3 by
Feb 2023, tower 5& 6 by May 2023 and tower 1 by December 2023.
Further in phase 1, 230 families are residing out of 250 whom
possession offered. AIPL is yet to launch the phase 2 and it is
expected to be launched by September 2022. All the approvals and
RERA registration for phase 2 are in place.
* Excessive dependence on customer advances: AIPL is currently
developing a residential group housing project, CASA Espana, in
Sector 121, Mohali, Punjab. The project is being developed in 2
phases. For phase 1, the company has spent 80% of the total project
cost (as on May 31, 2022). The same has been funded through NCD's &
customer advances. Remaining cost of INR131 cr for phase 1 has to
be funded majorly from customer advances. Therefore, dependence on
customer advances for funding the project continues to remain high.
However, comfort can be derived from the fact that satisfactory
progress has been achieved in sales status (about 91% area sold
till May-21) and remaining amount of project cost of INR102 cr is
already tied-up in form of receivables from sold stock.
* Salability and execution risk pertaining to proposed phase-II:
AIPL is yet to commence the construction and commercial sales for
the Phase 2, and it is expected to be launched by September 2022.
Since the project is yet to be launched, the execution and
salability risk pertaining to the same shall be high and may impact
the overall financial profile of the entity adversely, in case of
any time or cost escalations. Also there has been delays in the
launch of the project due to covid and subdued market scenario with
delay in approval from government authorities, which has further
impacted the liquidity position of the company. Any further delay
in the launch of phase 2, will have adverse impact on the financial
risk profile of the company.
* Inherent cyclical nature of the real estate sector: The company
is exposed to the cyclicality associated with the real estate
sector which has direct linkage with the general macroeconomic
scenario, interest rates and level of disposable income available
with individuals. In case of real estate companies, the
profitability is highly dependent on property markets. A high
interest rate scenario could further discourage the consumers from
borrowing to finance the real estate purchases and may depress the
real estate market.
Liquidity: Weak
The liquidity profile of ATS Infrabuild Private Limited remains
weak as reflected by slow customer collection and sales momentum.
The sales and collection have remained slow in the last one year
due to subdued real estate scenario. Due to mismatch between
project receipts vis a vis the debt repayment obligations the
liquidity of ATS infrabuild Private Limited remains constrained.
ATS Infrabuild Pvt Ltd (AIPL), incorporated on October 4, 2007, is
engaged in development of Real Estate Projects. AIPL is a part of
ATS Group (ATS), which has a long-standing presence in real estate
industry primarily in north India. The promoter of the group, Mr.
Getamber Anand, has more than two decades of experience in the real
estate industry. In the past, the group has successfully completed
seven residential/group housing projects with total saleable area
of about 113 lakh square feet (lsf).
At present, the ATS group is developing 22 residential projects
across North India (mainly Delhi NCR) having total saleable area of
approximately 361 lsf. AIPL is currently developing a premium
residential group housing project, CASA Espana, in Sector 121,
Mohali Punjab, in a joint venture with Shivalik Group. The project
is being developed in 2 phases. While Phase 1 is fully approved and
is under construction, Phase 2 is at approval stage. Phase 1 has a
total saleable are of 14.34lsf while Phase 2 has a saleable area of
11.66 lsf.
AVATHERA PHARMA: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Avathera Pharma Private Limited
P.No. 1981, 1984, Pragathi Nagar
Jeedimetla, Hyderabad
Telangana 500015
India
Insolvency Commencement Date: July 21, 2022
Court: National Company Law Tribunal, Hyderabad Bench
Estimated date of closure of
insolvency resolution process: January 16, 2023
Insolvency professional: Ramanjaneyulu Gandluri
Interim Resolution
Professional: Ramanjaneyulu Gandluri
A-414 Usha Enclave
Navodaya Colony
Srinagar Colony Extn
Yellareddiguda
Nr Satyasai Nigamagamam
Hyderabad, Telangana 500073
E-mail: ramgandluri@gmail.com
avatherarp@gmail.com
Last date for
submission of claims: August 4, 2022
BAOSTEEL ENGINEERING: Voluntary Liquidation Process Case Summary
----------------------------------------------------------------
Debtor: Baosteel Engineering India Private Limited
256, Vardhman City
Center-2
Near Shakti Nagar Under Bridge
Delhi, North Delhi
DL 110052
Liquidation Commencement Date: August 17, 2022
Court: National Company Law Tribunal, Delhi Bench
Insolvency professional: Jitesh Gupta
Interim Resolution
Professional: Jitesh Gupta
Office No. 257, Vardhman City
Center-2
Near Shakti Nagar
Under Railway Bridge
Delhi 110052
E-mail: jitesh@jkgupta.com
Tel: 011-23644449
Last date for
submission of claims: September 15, 2022
CFC CARRIERS: CARE Withdraws D Rating on Long Term Facilities
-------------------------------------------------------------
CARE has reaffirmed and withdrawn the outstanding rating of 'CARE
D: ISSUER NOT COOPERATING assigned to the bank facilities of CFC
Carriers Private Limited (CCPL) with immediate effect. The rating
has been reaffirmed by taking into account non-availability of
information due to non-cooperation by CCPL with CARE'S efforts to
undertake a review of the rating outstanding. CARE views
information availability risk as a key factor in its assessment of
credit risk. Further, the ratings continue to remain constrained by
delays in debt servicing.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities - Rating continues to remain
under ISSUER NOT COOPERATING
category; Reaffirmed at CARE D;
ISSUER NOT COOPERATING and
Withdrawn
The above action has been taken at the request of CFC Carriers
Private Limited and 'No Objection Certificate' received from the
bank that has extended the facilities rated by CARE Ratings Ltd.
Detailed description of the key rating drivers:
Key Rating Weaknesses
* Delays in debt servicing: The delays in debt servicing recognized
from publicly available information i.e. Annual Report for FY21,
available from registrar of the companies.
Liquidity: Poor
The liquidity of the company stood poor as marked by low current
ratio and quick ratio which stood at 1.44x and 1.44x as on
March 31, 2021 (Audited).
New Delhi-based CFC Carriers Private Limited (CCPL) was
incorporated in November 1995 and was promoted by Mr. Neeraj
Sharma. The company is in the business of providing transportation
and carrier services. CCPL has a total 25 branch offices across pan
India (predominantly concentrated in northern and western India),
which facilitate collection and distribution of goods and parcels.
Furthermore, the company offers door step delivery services and has
smaller light commercial vehicles which pick/deliver the goods from
the nodal offices and transport the same to the customer.
DIGITAL MICRON: Liquidation Process Case Summary
------------------------------------------------
Debtor: Digital Micron Roto Print Private Limited
102, Shri Krishnas Times Sqaure (1st Floor)
Scheme No. 47, Sneh Nagar Main Road
Indore MP 45001
IN
Liquidation Commencement Date: August 25, 2022
Court: National Company Law Tribunal, Indore Bench
Date of closure of
insolvency resolution process: October 8, 2021
Insolvency professional: Ms. Teena Saraswat Pandey
Interim Resolution
Professional: Ms. Teena Saraswat Pandey
387F 114 Scheme Part 1
Behind Diksha Girls Hostel
Sant Nagar, Lasudia Mori
Dewas Naka, Indore
Madhya Pradesh 452010
E-mail: teenasaraswat@yahoo.co.in
ip.dmrp@gmail.com
Last date for
submission of claims: September 23, 2022
DOLLEX AGROTECH: CARE Withdraws D Rating on Long Term Facilities
----------------------------------------------------------------
CARE Ratings Ltd has reaffirmed and withdrawn the outstanding
rating of 'CARE D (Single D)' assigned to the bank facilities of
Dollex Agrotech Limited (DAL), with immediate effect. The above
action has been taken at the request of DAL and 'No Objection
Certificate' received from the bank that have extended the
facilities rated by CARE Ratings Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank - Reaffirmed at CARE D and
Facilities Withdrawn
Detailed description of the key rating drivers
Key Rating Weaknesses
* Delays in debt servicing obligations: There were delays in
servicing its term loan installments for the month of May and June
2022 due to poor liquidity position of DAL.
Indore–based (Madhya Pradesh) Dollex Agrotech Limited (DAL) was
incorporated in 2013 as Dollex Agrotech Private Limited and changed
its constitution to Public limited company (unlisted) from May 20,
2022. It is engaged into trading and manufacturing of sugar and
jaggery from its manufacturing plant located at Datia, M.P. The
company has successfully completed capex of INR59.96 crore for
manufacturing of jaggery with an installed capacity of 1000 TCD
(Tons Crushing Per Day) and manufacturing of sugar with an
installed capacity of 2500 TCD. The operations for manufacturing
jaggery commenced from October, 2018 while manufacturing of sugar
commenced from January, 2020. DAPL procures sugarcane which is the
key raw material from the local farmers and sells majority of its
product domestically. However, it conducts trading operations with
traders located in Maharashtra and Madhya Pradesh.
EFFULGENCE TRADING: CARE Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Effulgence
Trading and Services Private Limited (ETSPL) continue 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
Short Term Bank 120.00 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 14, 2021,
placed the rating(s) of ETSPL under the 'issuer non-cooperating'
category as ETSPL 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. ETSPL 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).
ACFPL is a part of Swastik group (SG) and Mr. Hitesh Bindal is the
founder promoter of the company. The company has changed its name
to Effulgence Trading And Services Private Limited (ETSPL) from May
24, 2022. ETSPL imports its coal requirement directly or through
merchant importers in India and supplies it to the domestic market
for usage by various industries like cement, captive power plants,
steel and bricks. ETSPL is also engaged in trading of domestic coal
purchased through e-auction route from Coal India Limited (CIL).
SG, based out of Indore, Madhya Pradesh, is primarily involved in
the business of coal trading. The group has presence of more than
two decades with interests in diversified businesses including coal
trading, logistics, construction and real estate.
ELECTRO TEKNICA: CARE Lowers Rating on INR1.50cr LT Loan to C
-------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Electro Teknica Switchgears Private Limited (ETSPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 1.50 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B-; Stable
Short Term Bank 5.00 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 June 22, 2021,
placed the rating(s) of ETSPL under the 'issuer non-cooperating'
category as ETSPL 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. ETSPL continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 8, 2022, May 18, 2022, May 28, 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 ETSPL have been
revised on account of non-availability of requisite
information. The ratings further consider significant decline in
scale of operations, accumulation of losses, leveraged capital
structure and weak debt coverage indicators during FY21 over FY20.
Incorporated in May 1988, Electroteknica Switchgears Private
Limited (ETSPL) is engaged in the business of manufacturing of
electrical equipment like high voltage switchgear and transformer
with its facilities located at West Bengal with an aggregate
installed capacity of 1310 Pieces Per Annum. Mr. Katkuri
VenkataKrishna Reddy, having more than three decades of experience
in the same line of industry, looks after the overall management of
the company along with the other director Mr. Haranath Babu
Boyapati and supported by the team of experienced professionals.
G.R MULTIFLEX: CARE Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of G.R
Multiflex Packaging Private Limited (GMPPL) continues to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.00 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 22, 2021,
placed the rating(s) of GMPPL under the 'issuer non-cooperating'
category as GMPPL 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. GMPPL continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 8, 2022, May 18, 2022, May 28, 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).
Kolkata based G.R Multiflex Packaging Private Ltd (GMPPL) was
incorporated in July 2002 and currently managed by Mr.
Rabindra Kumar Jaiswal and Mrs. Prativa Jaiswal. Since its
inception, the company has been engaged in manufacturing of
flexible packaging materials such as polyester laminated rolls,
multilayer flexible films, oil print films, water printed films,
and bags and pouches. The company's manufacturing facility is
located in Kolkata with aggregated installed capacity of 1404
metric ton per annum.
GEM GRANITES: CARE Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Gem
Granites (GG) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 58.02 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Long Term/ 19.33 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
Short Term Bank 77.16 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 July 5, 2021,
placed the rating(s) of GG under the 'issuer non-cooperating'
category as GG 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. GG continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 21, 2022, May 31, 2022, June 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).
GG is a partnership firm established in the year 1972 by Mr.
Veeramani to carry on the business of mining/quarrying and
processing of various varieties of granites. The firm has two
quarrying units one in Ilkal, Karnataka and other in Dharmapuri
district. It also has a granite processing unit in Injambakkam,
Chennai.
GILL ACQUA: Insolvency Resolution Process Case Summary
------------------------------------------------------
Debtor: Gil Acqua Hydro Power Generation Company
Private Limited
Registered office:
Lane 3, Green Field Colony
Anand Pur Road
Pathankot Punjab 145001
India
Other address:
Flat No. 504-505
Kusal Bazar Building
32-33 Nehru Place
New Delhi 110019
Delhi, India
Insolvency Commencement Date: August 30, 2022
Court: National Company Law Tribunal, Chandigarh Bench
Estimated date of closure of
insolvency resolution process: February 22, 2023
Insolvency professional: Mr. Sanjeev Bhandari
Interim Resolution
Professional: Mr. Sanjeev Bhandari
95-B, Rishi Nagar Backside
Telephone Exchange, Hambran Road
Ludhiana, Punjab 141001
E-mail: ipcasanjeevbhandari.1@gmail.com
- and –
AAA Insolvency Professionals LLP
E-10A, Lower Ground Floor
Kailash Colony, Greater Kailash-1
New Delhi 110048
E-mail: sanjeevbhandari@aaainsolvency.com
Last date for
submission of claims: September 13, 2022
GOURAV POULTRIES: CARE Keeps C Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Gourav
Poultries India Private Limited (GPIPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.29 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 July 1, 2021,
placed the rating(s) of GPIPL under the 'issuer non-cooperating'
category as GPIPL 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. GPIPL continues to
be noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 17, 2022, May 27, 2022, 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).
Gourav Poultries India Private Limited (GPI) was incorporated in
December, 2010 by Mr Jai Bhagwan and Mr. Vinod Kumar. The company
is currently being managed by Mr Jai Bhagwan and Mrs Kiran. GPI is
engaged in poultry farming business at its poultry farm located in
Jind, Haryana.
HARIHAR INTERNATIONAL: Insolvency Resolution Process Case Summary
-----------------------------------------------------------------
Debtor: Harihar International Private Limited
Near Bank of India
P.O. Sunder Nagar
Jamshedphur
Jharkand 832107
Insolvency Commencement Date: August 31, 2022
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: February 27, 2023
Insolvency professional: Ms. Meera Prasad
Interim Resolution
Professional: Ms. Meera Prasad
Flat No. 103, First Floor
Anurag Apartment, Ashok Asthali
Near Dibadih Flyover
Ranchi, Jharkhand 834002
E-mail: pdmeera@gmail.com
- and –
AAA Insolvency Professionals LLP
Mousumi Co. Op. Housing Society
15B, Ballygunge Circular Road
Kolkata 700019
E-mail: hipl.cirp@gmail.com
Last date for
submission of claims: September 14, 2022
HYPER TECHNO: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Hyper Techno Buildmart Private Limited
'Shri Nath Residency' A-2 & 3
V.S.P. Nagar
Near Mahila Ashram College Bhilwara
Rajasthan 311001
India
Insolvency Commencement Date: September 3, 2022
Court: National Company Law Tribunal, Jaipur Bench
Estimated date of closure of
insolvency resolution process: February 27, 2023
Insolvency professional: Rishabh Chand Lodha
Interim Resolution
Professional: Rishabh Chand Lodha
E-5, Shraman Basant Vihar
Gandhi Nagar, Bhilwara
Rajasthan 311001
E-mail: rishabhlodha57@gmail.com
cirp.hypertechno@gmail.com
- and –
AVM Resolution Professional LLP (IPE)
8/28, 3rd Floor, WEA
Abdul Aziz Road, Karol Bagh
New Delhi 110005
Classes of creditors: Home Buyers
Insolvency
Professionals
Representative of
Creditors in a class: Mr. Nittin Mehta
Mr. Vijay Singh Chaplot
Mr. Arun Kapoor
Last date for
submission of claims: September 17, 2022
JAGAT REALCON: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Jagat Realcon Private Limited
ATM No. 2 & 3 Pacific Mall
KP-Block, Pitampura
New Delhi 110034
Insolvency Commencement Date: August 24, 2022
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: February 19, 2023
(180 days from commencement)
Insolvency professional: Loveneet Handa
Interim Resolution
Professional: Loveneet Handa
201, Second Floor
Park View Complex
Plot No. 48, Hasanpur
I.P. Extension
Patparganj, Delhi 110092
E-mail: loveneet.cs@gmail.com
cirp.jagatrealcon@gmail.com
Last date for
submission of claims: September 7, 2022
JAI VENAE: CARE Keeps D Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Jai Venae
Poultry Farms (JVPF) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.74 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 July 29, 2021,
placed the rating(s) of JVPF under the 'issuer non-cooperating'
category as JVPF 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. JVPF continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
June 14, 2022, June 24, 2022, July 4, 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).
Andhra based, Jay Venkay Poultry Farms (JVPF) was established in
the year 2008 and promoted by Mr. K Venkata Rao and family members.
The firm is engaged in farming of egg laying poultry
birds(chickens) and trading of eggs and live birds. The firm sells
its products like eggs and live birds in Andhra Pradesh to
retailers through own sales personnel. The firm buys chicks (small
chickens) from Srinivasa hatcheries private limited, Vijayawada.
The firm purchases raw materials like rice bokkens, sun flower cake
from local farmers, and soya from Harikrishna & Co, Suvarnalakshmi
trading company.
JAIPUR DREAM: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Jaipur Dream Buildcon Private Limited
Office No. 1, 4th Floor
Unique Destination
Laxmi Mandir Crossing
Tonk Road Jaipur
RJ 302015
IN
Insolvency Commencement Date: September 3, 2022
Court: National Company Law Tribunal, Jaipur Bench
Estimated date of closure of
insolvency resolution process: February 27, 2023
(180 days from commencement)
Insolvency professional: Mr. Arvind Kaushik
Interim Resolution
Professional: Mr. Arvind Kaushik
P-4, Tilak Marg
C-Scheme, Jaipur 302005
E-mail: ca73588@gmail.com
Classes of creditors: Homebuyers
Insolvency
Professionals
Representative of
Creditors in a class: Mr. Sudhir Bhansali
Mr. Bau Lal Sharma
Mr. Sushil Kumar Verma
Last date for
submission of claims: September 17, 2022
JPM EXPORTS: CARE Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of JPM Exports
Private Limited (JEPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 45.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 5.00 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 14, 2021,
placed the rating(s) of JEPL under the 'issuer non-cooperating'
category as JEPL 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. JEPL 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).
JPM Exports Private Limited (JPM) incorporated on August 19, 2009
by Mr. Dilip Madhogaria, is engaged in manufacturing and export of
work wear and uniforms such as fire control units, hotels,
hospitals, military wear and casual wear. It is a Government of
India registered Star Export House. JPM has expanded its operations
through Bangladesh in 2013 and has also set up a comprehensive
assembly line of production at its leased facility in Barasat, West
Bengal in 2016.
LIBERTY OIL: Ind-Ra Keeps 'D' Issuer Rating in Non-Cooperating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Liberty Oil
Mills Limited's (LOML) Long-Term Issuer Rating in the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Thus, the rating is based on the best available
information. Therefore, investors and other users are advised to
take appropriate caution while using the rating. The rating will
continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR7.120 bil. Non-fund-based working capital facility (Short-
term) maintained in non-cooperating category with IND D
(ISSUER NOT COOPERATING) rating; and
-- INR1.30 bil. Fund-based working capital limits (Long-/short-
term) maintained in non-cooperating category with IND D
(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information.
Company Profile
LOML is a part of the Liberty group of companies. The company is
engaged in the refining and trading of edible oils. It also
manufactures clarified butter, interest terrified vegetable oils
and fats and bakery products. The company has a total annual
capacity of over 650,000 metric tons, with six processing
facilities in Shahapur, Thane. LOML has an established presence in
western India and a management with an experience of over two
decades in the edible oil business.
M.G. ASSOCIATES: CARE Keeps C Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of M.G.
Associates (MGA) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE C; 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 July 2, 2021,
placed the rating(s) of MGA under the 'issuer non-cooperating'
category as MGA 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. MGA continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 18, 2022, May 28, 2022, June 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).
Kalaburagi (Karnataka) based, M.G. Associates (MGA) was established
in the year 2010 as a partnership firm by Rathi and Mailapur
family. The firm is engaged in the construction of residential
townships, apartments, shopping malls and commercial complexes.
Further, the firm has diversified its business in FY18 into
hospitality by starting hotel in the name of Citrus Hotel in
Gulbarga, Karnataka. Currently, the firm engaged in development of
residential project in Gulbarga with total investment of INR72.64
crore.
MBG COMMODITIES: Ind-Ra Cuts LongTerm Issuer Rating to 'BB+'
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded MBG Commodities
Private Limited's (MBG) Long-Term Issuer Rating to 'IND BB+' from
'IND BBB-'. The Outlook is Negative.
The instrument-wise rating actions are:
-- INR50 mil. Fund-based limits downgraded with IND BB+/Negative/
IND A4+ rating; and
-- INR2.40 bil. Non-fund-based limits downgraded with IND BB+/
Negative/IND A4+ rating.
The downgrade and Negative Outlook reflect the sustained EBITDA
losses incurred by MBG, the continued decline in its revenue, and
its stretched liquidity position in FY22.
Key Rating Drivers
Sustained EBITDA Losses; Weak Credit Metrics: MBG's operating
EBITDA losses widened to INR131.60 million in FY22 (FY21: loss of
INR104.50 million; FY20: EBITDA profit of INR347.60million) on
account of a decline in the top-line of the company. FY22 numbers
are provisional in nature. The ability of the company to improve
its operating EBITDA in FY23 and over the medium term, led by an
increase in revenue on the back of diversification of business
operations, would remain a key monitorable.
The rating further reflects MBG's continued weak credit metrics,
given the operating EBITDA losses. The net financial leverage
(adjusted net debt/operating EBITDA) improved to 10.61x in FY22
(FY21:17.40x), supported by comfortable cash accruals. Any
improvement in the metrics in FY23 and over the medium term would
be dependent on growth in the scale of operations, lower
utilization of working capital limits and the absence of any
significant debt-funded capex
Decline in Revenue: The revenue of the company declined for the
second consecutive year in FY22, falling to INR825.41 million
(FY21:INR932.50 million; FY20:INR10,641.60 million) owing to nil
trading of imported coals, a decline in the income from cargo
handling services of coals procured from the domestic suppliers for
the power generation companies (gencos), and a fall in polymer
trading. In FY22, the company booked nil revenue from the trading
of imported coals (FY21: INR309.81 million) due to lower demand for
the same from government departments as well as deferment of the
existing tenders/orders floated by the government departments. The
contribution of revenue from the trading of polymers declined in
FY22, due to issues such as shortage of polymers, resulting from
the increase in crude oil prices.
MBG's revenues in FY22 was supported to some extent by the stable
revenue of INR526.54 million (FY21: INR532.58 million) from the
cargo handling segment and income of INR251.32 million from the
trading of iron ores and manganese, which the company commenced
from FY22. During 4MFY23, the company booked nil revenue owing to
the absence of trading of imported coals and muted demand for
polymers and iron ore/ manganese. Since the demand for imported
coal from state power generating companies has reduced, the company
plans to start offering cargo handling services for the gencos, and
limit its exposure to the trading of imported coals. Any growth in
the revenue in FY23 and over the medium term would depend on
securing of sufficient orders to execute the cargo handling service
for the gencos and the sales of the residential plotted lands being
completed in accordance with the management's expectations.
Diversification into Real Estate: In FY23, MBG plans to foray into
the real estate segment, wherein it would be selling residential
plotted lands from September 2022. MBG has already paid an advance
of INR250 million to Centrum Developers LLP, a Hyderabad-based real
estate player that has developed 0.1 million square yards of
residential plotted lands, to procure land of 50,000 square yards
near Patenchuru-Hyderabad, Telangana. MBG has finalized three
possible routes to sell the plotted lands - i) the company can sell
the lands under its own name; or ii) Centrum Developers can sell
the properties on behalf of MBG; or iii) Centrum Developers and MBG
can sell the lands jointly. If the plotted lands are sold jointly,
the profit sharing will take place in a 50:50 ratio. The project is
located close to the Hyderabad airport and is well connected to the
city. As per the management, all the development and construction
work has been completed, and all the statutory clearances have been
received, except the Real Estate Regulatory Authority's approval,
which is likely to be received by mid-September 2022. Once the
approval is received, the company will start selling the
residential plotted lands. The management targets to sell 50% of
the plotted lands in FY23 and the remaining in FY24. The ability of
the company to identify potential buyers and sell the plotted lands
as per the estimated price will remain key monitorables.
Furthermore, improvement in the scale of operations, supported by
diversification of business, will remain a key monitorable.
Liquidity Indicator-Stretched: MBG does not have any capital market
exposure and relies only on banks and financial institutions to
meet its funding requirements. MBG's average maximum utilization of
fund-based limits was only about 2.05% during the 12 months ended
July 2022, indicating adequate availability of the unutilized
funds. In FY22, the cash flow from operations fell to INR152.95
million (FY21: INR522.00million) owing to the widening of EBITDA
losses and an increase in the interest cost. Ind-Ra expects the
cash flow from operations to improve in the medium term on account
of the planned diversification in the business. The net working
capital cycle continues to be negative at 476 days in FY22 (FY21:
negative 329 days) on account of an increase in the credit payment
period to 1,207 days (1,086 days) and inventory holding period to
27 days (nine days). The inventory holding period elongated in FY22
as 6,000 tons of imported coal were stocked at the port, as the
management wanted to sell the same for immediate cash and not on a
credit basis and they were unable to find buyers for the same. The
company reported unencumbered cash equivalents of INR1,697.45
million at FYE22 (FYE21:INR2,107.30million).
MBG had a total debt of INR301.28 million at FYE22
(FYE21:INR288.60million), of which INR14.33million was external
debt and the balance was loans and advances from related parties
and corporate bodies. The company has moderate long-term repayment
obligations of INR5.63million and INR6.06million for FY23 and FY24,
respectively, which can be comfortably met with the cash balances.
Additionally, MBG's investments, which were mainly in its group
companies, amounted to INR267.60million at FYE22
(FY21:INR267.60million) and its loans and advances stood at
INR290.89million (INR480.37 million).
High Receivables: The rating also factors in the high receivables
of the company, though the same improved to INR1,591.78 million at
FYE22 (FYE21: INR1,911.80 million; FYE20: INR3,967.80 million). The
debtor days continued to be stretched at 704 days in FY22 (FY20:
748 days; FY20: 136 days) on account of delays in the payment
realizations from the customers, who have been facing cash deficit.
MBG's business remains exposed to the weak credit profiles of state
power generating utilities, which were the bulk customers for the
company's coal trading business. The management is planning to
recover the outstanding dues from their customers. With the ongoing
shift in the business profile, the company's ability to recover the
delayed payments will remain a key monitorable.
High Payables Remain Outstanding: MBG's payables remained high and
increased to INR3165.82million in FY22 (FY21:INR3,084.10 million;
FY20:INR4555.10 million). The company has an understanding with its
suppliers, wherein the supplier will be paid once the company
receives its payment from the customer. As per the management, the
payment has to be made in a phased manner i.e. according to the
payment received from the customers. However, if any sudden pay-out
is needed, the same shall be funded out of the existing cash
balances, depending on the amount. In case of any shortfall, as per
the management, the company might infuse additional capital to pay
their suppliers and would not go for any external debt borrowings.
Rating Sensitivities
Negative: Any further deterioration in the profitability and debtor
cycle along with increased liquidity mismatch on the outstanding
dues, leading to a substantial build-up of debt, could be negative
for the ratings.
Positive: A sharper-than-expected improvement in the scale of
operations and EBITDA margins along with an improvement in the
debtor cycle, leading to significant accretion of cash and easing
of the liquidity mismatch, could be positive for the ratings.
Company Profile
Established in 1982 as Maheswari Brothers, MBG was converted into a
private limited company in 2012. MBG trades in imported coal, which
it imports mainly from Indonesia, South Africa, Russia and
Australia, and caters to the coal needs for the power sector.
Besides this, the company is also engaged in cargo handling for
gencos for domestically procured coal and is also engaged in
trading of polymer products and iron ore and manganese.
MEWAR UNIVERSITY: CARE Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Mewar
University (MU) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 16.72 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 July 5, 2021,
placed the rating(s) of MU under the 'issuer non-cooperating'
category as MU 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. MU continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 21, 2022, May 31, 2022, June 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).
Mewar University (MU) is an autonomous body promulgated by the
Government of Rajasthan through an Act passed by Rajasthan Assembly
in 2009 and is also approved by the UGC with the right to confer
degrees. MU was set up with an objective of providing higher and
technical education to the people of Mewar region of Rajasthan in
particular and India in general. MU is promoted by the Mewar
Education Society (MES), Chittorgarh and is controlled by a Board
of Management constituted by MES. The Board of Management is headed
by the Chancellor Mr. Ashok Kumar Gadiya.
MILANI TECNO: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Milani Tecno Engineering Limited
Registered office:
01, Plot No. 90, Mayur Colony
Jhalwa, Prayagraj
Allahabad, UP 211012
Corporate office:
4th Floor, Shri Shubh Apartments
Prafull Kanan Vip Park
Kestopur, Kolkata
WB 700101
Insolvency Commencement Date: August 24, 2022
Court: National Company Law Tribunal, Allahabad Bench
Estimated date of closure of
insolvency resolution process: February 19, 2023
Insolvency professional: Anurag Nirbhaya
Interim Resolution
Professional: Anurag Nirbhaya
204, Sagar Plaza
Plot No. 19, District Centre
Laxmi Nagar, New Delhi 110092
E-mail: anurag@canirbhaya.com
cirp@milanitechno.com
Tel: 8368569355
Classes of creditors: Investors in the Collective Investment
Scheme floated by the Corporate Debtor
Insolvency
Professionals
Representative of
Creditors in a class: Mr. Sanjeev Gupta
307, Laxmideep Building
Plot No. 9, District Centre
Laxmi Nagar, Delhi 110092
Mr. Rajeev Lochan
243, 1st Floor, AGCR Encalve
New Delhi 110092
Mr. Raj Kumar Soni
127, Second Floor, IP Colony
Sector 30-33, Gate No. 3
Indraprastha Colony
Faridabad, Haryana 121003
Last date for2
submission of claims: September 7, 2022
MOBILESTORE SERVICES: CARE Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of The
Mobilestore Services Limited (TMSL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 70.66 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 26.00 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 29, 2021,
placed the rating(s) of TMSL under the 'issuer non-cooperating'
category as TMSL 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. TMSL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 15, 2022, May 25, 2022, June 4, 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 MobileStore Services Limited (TMSL), a part of the Essar Group,
is engaged in the business of distribution of telecom, consumer
electronics and related products including mobile handsets,
accessories, domestic appliances and other consumer durable
products.
NAKKHEERAN PUBLICATIONS: CARE Keeps D Ratings in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Nakkheeran
Publications (NP) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.95 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 0.75 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 July 5, 2021,
placed the rating(s) of NP under the 'issuer non-cooperating'
category as NP 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. NP continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 21, 2022, May 31, 2022, June 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).
Chennai based, Nakkheeran Publications (NP) was incorporated in the
year 1988 by Mr. Nakkheeran Gopal. The firm is engaged in printing
of magazines and journals.
NARWAL HATCHERIES: CARE Keeps B- Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Narwal
Hatcheries (NH) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.45 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 July 5, 2021,
placed the rating(s) of NH under the 'issuer non-cooperating'
category as NH 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. NH continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 21, 2022, May 31, 2022, June 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).
Narwal Hatcheries (NWH) was established in April 2004 as a
partnership firm and is currently being managed by Mr. Surjeet
Singh, Mr. Kuldeep Singh, Mr. Kulbir Singh, Mr. Satpal Singh, Mr.
Lehna Singh, Mrs. Ratni Devi and Mr. Gaurav Narwal as its partners.
The firm is engaged in the hatchery business at its farm located in
Karnal, Haryana.
NEPTUNE VENTURES: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Neptune Ventures and Developers Private Limited
4th Floor, Eastern Buisness District
Near Mangatram Petrol Pump
L B S Road, Bhandup (W)
Mumbai 400078
Maharashtra, India
Insolvency Commencement Date: August 30, 2022
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: February 25, 2023
(180 days from commencement)
Insolvency professional: Kairav Anil Trivedi
Interim Resolution
Professional: Kairav Anil Trivedi
23 A 5th floor Jyoti Bldg.
Barquatali Dargah Margh
Wadala (E), Mumbai 400037
E-mail: kairavtrivedi2002@yahoo.co.in
- and –
413-414, Shramjeevan B5
Opp. Lodha, New Cuffe Parade
Wadala (E), Mumbai 400037
Last date for
submission of claims: September 12, 2022
NEW SILK: Voluntary Liquidation Process Case Summary
----------------------------------------------------
Debtor: New Silk Route Advisors Private Limited
Off No. 26L, 12th Flr.
Navjivan Commercial Premises Ltd.
Bldg No. 3, Lamington Road
Mumbai Central
Liqudation Commencement Date: August 1, 2022
Court: National Company Law Tribunal, Mumbai Bench
Insolvency professional: Anish Gupta
Interim Resolution
Professional: Anish Gupta
413 Autumn Grove
Near Lokhandwala Foundation School
Lokhandwala Foundation School
Lokhandwala Township, Kandivali East
Mumbai 400101
Tel: +918976008479
E-mail: anish@csanishgupta.com
Last date for
submission of claims: August 31, 2022
OMVISHWA GRAINS: CARE Lowers Rating on INR7cr LT Loan to D
----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Omvishwa Grains Private Limited (OGPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.00 CARE D; ISSUER NOT COOPERATING
Facilities 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 July 2, 2021,
placed the rating(s) of OGPL under the 'issuer non-cooperating'
category as OGPL 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. OGPL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 18, 2022, May 28, 2022, June 7, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rat ng 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 OGPL have been
revised on account of delay in debt servicing as recognized from
publicly available information i.e. FY21 Annual report available
from ROC filings.
Omvishwa Grains Private Limited (OGP) was incorporated as a private
limited company in February 2017 and the company is currently being
managed by Mr. Raghbir Chand, Mr. Dharam Pal, and Mr. Ved Prakash.
OGP is established with an aim to set up a manufacturing facility
at Kaithal, Haryana. The commercial operations of the company
commenced in October, 2017.
PELLET ENERGY: Liquidation Process Case Summary
-----------------------------------------------
Debtor: M/s Pellet Energy Systems Private Limited
205A, Ground Floor, LSC
Vardhman Premium Mall
Outer Ring Road, Deepali
Pitampura New Delhi
North West Delhi 110034
Liquidation Commencement Date: August 30, 2022
Court: National Company Law Tribunal, Principal Bench
Date of closure of
insolvency resolution process: August 27, 2020
Insolvency professional: Reshma Mittal
Interim Resolution
Professional: Reshma Mittal
RR Insolvency Professionals LLP
R-4/39, Raj Nagar
Ghaziabad 201002
E-mail: careshmamittal@gmail.com
irp.pellet@rrinsolvency.com
Last date for
submission of claims: September 25, 2022
PRAKASH CORRUGATED: CARE Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Prakash
Corrugated Products (PCP) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 22.31 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 0.02 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 July 2, 2021,
placed the rating(s) of PCP under the 'issuer non-cooperating'
category as PCP 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. PCP continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 18, 2022, May 28, 2022, June 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).
PCP was established in September 2001, as a proprietorship concern
and is involved in manufacturing of make to order corrugated boxes.
PCP's unit is located at Verna, Goa.
PRASHANTI CORPORATION: Ind-Ra Assigns 'BB' LongTerm Issuer Rating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Prashanti
Corporation (PC) a Long-Term Issuer Rating of 'IND BB'. The Outlook
is Stable.
The instrument-wise rating action is:
-- INR900 mil. Term loan due on June 2027 assigned with IND BB/
Stable rating.
Key Rating Drivers
The rating reflects PC's high offtake risk for its ongoing project,
'The Emerald', as till 28 June 2022 no sale has been booked. It was
Real Estate Regulatory Authority registered in October 2021.
Furthermore, Ind-Ra expects the booking to start in 4QFY23 and to
increase as the project approaches its completion.
The rating also factors in PC's time and cost overrun risk in 'The
Emerald'. The total cost of the project is estimated to be
INR2,854.2 million, which is to be funded by the promoters'
contribution of INR1,360 million (47.6%), customer advances of
INR594.2 million (20.8%) and a term loan of INR900 million (31.5%).
As on 28 June 2022, PC's total cost incurred was INR826.3 million
(promoters contribution: INR747.5 million; and the term loan of
INR70.2 million).
Although the project's progress is in line with the execution
schedule, PC continues to be vulnerable to project delay risks.
Also, given the aggressively improving demand scenario, there is
significant competition.
Liquidity Indicator - Stretched: PC's rating is constrained by the
likely cash flow-mismatch risk, if the advances from customer are
lower than Ind-Ra's expectations. According to the management, the
minimum debt service coverage ratio during the repayment period
(FY26-FY28) will be 1.9x in FY28, due to the balloon payment
structure. The company does not have any access to the capital
market and relies on bank loan and promoter funds and unsecured
loans from the family and relatives .
However, the rating is supported by its promoters', 'Bhikhalal
Moradia and Gordhan Bhai Moradia' more than three decades'
experience in the building construction segment. Furthermore, the
'The Emerald' is located at VIP Vesu Road, Surat, which is a prime
locality in Surat. The project is within 6kms from the local
airport, 5.8kms from Surat Diamond Bourse and around 12.7kms from
the local railway station. Also, the construction of the project,
'7 Heaven', which is located in VIP Vesu Road, Surat, is 100%
completed . The group has completed a combined project area of
35,31,000 square feet (sq ft), out of which 65,173 sq ft is unsold
worth INR260.7 million as of June 28, 2022.
Rating Sensitivities
Negative: Time or cost overruns and lower-than-expected sales
volume or lower realization from bookings, leading to stressed cash
flows, could lead to a negative rating action.
Positive: Higher-than-expected sales and the timely receipt of
advances from customers, leading to stronger cash flows, could lead
to a positive rating action.
Company Profile
PC was incorporated as a partnership firm in 2011. It constructs
residential projects. Located at VIP Road, Vesu, Surat, Gujarat,
the company has one ongoing project- The Emerald (luxury 5 BHK
apartments), which has a total saleable area of 8,98,149 sq ft.
PRECISION MACHINES: Ind-Ra Affirms 'BB+' LongTerm Issuer Rating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Precision Machines
& Equipments Private Limited's (PMEPL) Long-Term Issuer Rating at
'IND BB+'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR51.75 mil. (reduced from INR68.4 mil.) Term loan due on
March 2025 affirmed with IND BB+/Stable rating;
-- INR66 mil. Fund-based working capital limits affirmed with
IND BB+/Stable /IND A4+ rating; and
-- INR115 mil. Non-fund-based working capital limits affirmed
with IND A4+ rating.
Key Rating Drivers
The affirmation reflects PMEPL's continued small scale of
operations, even as its revenue increased to INR1,426 million in
FY22 (FY21: INR770.70 million), due to an increase in orders from
its main customer Caterpillar India Private Limited (CIPL;
accounting for over 92% of sales). At end-1QFY23, PMEPL achieved a
revenue of around INR768 million (1QFY22: INR278.71 million) and
had an unexecuted order book of INR1,800 million from CIPL, to be
executed by March 2023. Ind Ra believes PMEPL's revenue will grow
significantly in FY23, given the substantial increase in the
tentative yearly order book from CIPL. FY22 numbers are
provisional.
PMEPL's healthy but volatile EBITDA margin declined to 5.9% in FY22
(FY21: 8.7%, FY20: 5.35%, FY19: 10.77%), due to a significant
increase in the raw material prices and the company's inability to
fully pass on the raw material price hike to its customers during
the year. The raw material cost as a percentage of revenue
increased to around 85% FY22 (FY21: 78%; FY20: 79%). The return on
capital employed was 18% in FY22 (FY21: 13%). Ind-Ra believes the
margins will remain volatile over the medium term, given the
fluctuations in raw material prices.
Liquidity Indicator – Stretched: PMEL's average peak use of the
fund-based limits was around 80% during the 12 months ended July
2022. The cash flow from operations is likely to have remained
positive and increased slightly yoy in FY22 (FY21: INR38 million)
due to the increased EBITDA and a decline in the net working
capital days to seven (26). PMEL had an adequate unencumbered cash
balance of around INR72 million at FYE22. The company has repayment
obligations of around INR22 million in FY23 and INR18 million in
FY24. The company does not have any capital market exposure and
relies on banks and financial institutions to meet its funding
requirements.
The ratings reflect PMEPL's comfortable credit metrics. The gross
interest coverage (operating EBITDA/gross interest expense)
improved to 3.08x in FY22 (FY21: 2.96x) and the net financial
leverage (adjusted net debt/operating EBITDA) to 0.49x (1.05x) due
to an increase in the absolute EBITDA to INR84.14 million (INR67.15
million). The agency expects the credit metrics to remain
comfortable over the short term due to a further rise in the EBITDA
due to the increased orders.
The ratings, however, are supported by the directors' nearly three
decades of experience in the field of fabrication of machines.
Rating Sensitivities
Positive: A decline in the customer concentration and significant
growth in the revenue, along with substantial growth in the EBITDA,
while maintaining the credit metrics and the liquidity position,
would lead to a positive rating action.
Negative: A decline in the revenue, along with a contraction in the
EBITDA margin, leading to the gross interest coverage falling
below 2x and a continued stretched liquidity position, on a
sustained basis, would lead to a negative rating action.
Company Profile
Founded in 1990, PMIPL is into manufacturing of heavy, precision
fabrication and machining. It is located in Porur, Irungattukottai
and Oragadam in Tamil Nadu. The total installed capacity is 60
units per month.
PUNJ SECURITY: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Punj Security & Housekeeping Services Private Limited
House No. 3531, Second Floor Sector 35 D
Chandigarh 260022
India
Insolvency Commencement Date: August 26, 2022
Court: National Company Law Tribunal, Delhi Bench
Estimated date of closure of
insolvency resolution process: February 21, 2023
(180 days from commencement)
Insolvency professional: Mr. Sanjay Mehra
Interim Resolution
Professional: Mr. Sanjay Mehra
B-11, 3rd Floor
Geetanjali Enclave
New Delhi 110017
E-mail: sanjay.mehra64@gmail.com
Last date for
submission of claims: September 8, 2022
RANA STEELS: CARE Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Rana Steels
India Private Limited (RSIPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 26.24 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Long Term/ 4.00 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated June 28, 2021,
placed the rating(s) of RSIPL under the 'issuer non-cooperating'
category as RSIPL 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. RSIPL continues to
be noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 14, 2022, May 24, 2022, June 3, 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).
Muzaffarnagar (Uttar Pradesh) based Rana Steels India Limited
(RSIPL), was initially incorporated in 1992 under the name K. K.
Steels Limited by Mr. Kadir Rana, as a closely held company. In
2009, the company was renamed to its current name. The company is
currently being managed by Mr. Shah Mohammad Rana, Mr. Aslam Tyagi
and Mr. Sahajad as directors of the company. The company is engaged
in manufacturing of Mild Steel (M.S.) angles, T-Iron, channels,
bars and rounds.
RECMET ALLOYS: CARE Keeps C Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Recmet
Alloys Private Limited (RAPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.95 CARE C; 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 30, 2021,
placed the rating(s) of RAPL under the 'issuer non-cooperating'
category as RAPL 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. RAPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 16, 2022, May 26, 2022, June 5, 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).
New Delhi based RAPL was incorporated during October 2010 with
objective of setting up a Lead refining and smelting unit at
Jambusar, Bharuch district (Gujarat) at a proposed refining
capacity of 24,000 MT per annum. RAPL's registered office is in New
Delhi but all its operations are carried out from its Vadodara
(Gujarat) office as this is near to its plant in Jambusar, Bharuch
district (Gujarat). RAPL is promoted by Mr. Rabindra Agarwal, Mr.
Sanjay Saini, Mr. Kunj Behari Sarraf and Mr. Anup Agarwal with the
first three directors having experience of more than a decade into
Non-ferrous metal industry. RAPL has completed its project of
setting up Lead refining and smelting unit in April, 2016 the total
cost of the project was INR12.85 core which was funded through debt
to equity of 0.45 times. The plant has been set up on a land plot
purchased by the company at Jambusar having area of 34,095 sq.
meters.
RICE TECH: CARE Keeps D Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Rice Tech
Agro Mills (RTAM) 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 July 15, 2021,
placed the rating(s) of RTAM under the 'issuer non-cooperating'
category as RTAM 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. RTAM continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 31, 2022, June 10, 2022, June 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).
Rice Tech Agro Mills (RTAM) was established in 1998 as a
partnership firm. Mr. A. M. Koya, Mr. A. M. Sijumon, Mrs. Mini
Koya, Mrs. Laila Makkar and Mrs. A. M. Seemon are partners of the
firm. The firm belongs to the 'Beepath' Group and is engaged in the
business of milling and trading of rice.
RICHFEEL HEALTH: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Richfeel Health & Beauty Private Limited
5 Floor-Grd, Plot-198
Jagdish Niwas, Rammilan
G Shukla Marg, Sion (E)
Mumbai, Mumbai City
MH 400022
IN
Insolvency Commencement Date: August 26, 2022
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: February 22, 2023
Insolvency professional: Anurag Kumar Sinha
Interim Resolution
Professional: Anurag Kumar Sinha
Flat No. 3602
Redwood (Tower No. 7)
Runwal Greens
Mulund-Goregaon Link Road
Bhandup (West), Mumbai City
Maharashtra 400078
E-mail: aksinhaip3@gmail.com
rhabpl@gmail.com
Last date for
submission of claims: September 9, 2022
SIGMA CHEMTRADE: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Sigma Chemtrade Private Limited
Sigma House 170/22, R.N.T. Marg
Film Colony Indore
MP 452001
IN
Insolvency Commencement Date: August 30, 2022
Court: National Company Law Tribunal, Indore Bench
Estimated date of closure of
insolvency resolution process: Febraury 26, 2023
Insolvency professional: Chhaya Gupta
Interim Resolution
Professional: Chhaya Gupta
1, Bima Nagar
202, Almas Dreams Apartment
Near Anand Bazaar
Indore 452018, MP
E-mail: guptachayacs@gmail.com
- and -
911, Apollo Premier
Near Vijay Nagar Square
Indore 452010, MP
E-mail: cirp.sctpl@gmail.com
Last date for
submission of claims: September 13, 2022
SORT INDIA: Liquidation Process Case Summary
--------------------------------------------
Debtor: Sort India Enviro Solutions Limited
"Shankarwadi", Near Shastri Bridge
Nava Yard Road, Fategunj
Vadodara, Gujarat 390002
Liquidation Commencement Date: August 30, 2022
Court: National Company Law Tribunal, Ahmedabad Bench
Date of closure of
insolvency resolution process: August 25, 2022
Insolvency professional: Sapan Mohan Garg
Interim Resolution
Professional: Sapan Mohan Garg
D-54, First Floor
Defence Colony
New Delhi 110024
E-mail: liquidation.sortindia@gmail.com
sapan10@yahoo.com
Last date for
submission of claims: September 29, 2022
SPRING PROJECTS: Voluntary Liquidation Process Case Summary
-----------------------------------------------------------
Debtor: Spring Projects Private Limited
82, D Beadon Street
Kolkata WB 700006
IN
Liquidation Commencement Date: August 23, 2022
Court: National Company Law Tribunal, Kolkata Bench
Insolvency professional: Sunil Choraria
Interim Resolution
Professional: Sunil Choraria
P-41, Princep Street
Room No. 222
Kolkata 700072
West Bengal
E-mail: chorariamba@rediffmail
springliquidator@gmail.com
Tel: 9831278326
Last date for
submission of claims: September 22, 2022
TECHNO SATCOMM: CARE Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Techno
Satcomm India Private Limited (TSIPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ 14.00 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated June 24, 2021,
placed the rating(s) of TSIPL under the 'issuer non-cooperating'
category as TSIPL 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. TSIPL continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 10, 2022, May 20, 2022, May 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).
Techno Satcomm (India) Private Limited (TSIPL) was incorporated in
year 2008 by Dave Family. The company was formerly known as Techno
Com Inc started in August, 2005 and later incorporated to Private
Limited in January, 2008. Currently Mr. Jay Dave, Mr. Nirav Dave
and Mr. Jagdip Rana are directors of the company. The company is
engaged in providing services of RFID solutions, IP based PA
systems, WIFI solutions, CCTV Surveillance, Black Box in trains,
Network Infrastructure, Captive portal and Biometric solutions.
TSIPL has registered office in Mumbai and branches in Delhi and
Kolkata.
THREE STAR: CARE Keeps C Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Three Star
Marine Exports (TSME) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 0.21 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Short Term 9.50 CARE A4; ISSUER NOT
Bank 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 July 15, 2021,
placed the rating(s) of TSME under the 'issuer non-cooperating'
category as TSME 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. TSME continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 31, 2022, June 10, 2022, June 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).
Three Star Marine Exports (TSME) is a partnership firm established
in 2011 by Mr. K. K. Ashraf, Mr. Harshad, Mr. Naushad, Mr.
Suharabi, Mr. Nasmudeen and Mr. P. M. Ahmedkutty. TSME is engaged
in export of processed sea food products with the present installed
capacity of 10 tons per day. The sea food products include Shrimp,
Cuttlefish, Squid, Octopus, Fish, Ribbon fish, Seafood mix etc. The
sea food products are sold under the brand name "TME".
TIRUPATI CARBONS: Ind-Ra Affirms 'B+' Long-Term Issuer Rating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Tirupati Carbons &
Chemicals Private Limited's Long-Term Issuer Rating at 'IND B+'.
The Outlook is Stable.
The instrument-wise rating actions are:
-- INR70 mil. Fund-based working capital limits affirmed with
IND B+/Stable rating; and
-- INR10 mil. Non-fund-based working capital limits affirmed with
IND A4 rating.
Key Rating Drivers
The affirmation reflects TCCPL's continued small scale of
operations, despite a marginal improvement in the revenue to
INR289.70 million in FY22 (FY21: INR283 million) due to its
strong/healthy order book. TCCPL had sold its own mine two years
ago due to government intervention. The company procures
semi-finished graphite from other companies and processes it in its
facilities situated in Rajdewra and Visakhapatnam. Ind-Ra expects
the revenue to improve in the medium term due to its order book of
INR350 million as of July 2022., which is to be executed till
December 2022. FY22 financials are provisional.
The ratings also continue to factor in TCCPL's modest EBITDA
margins of 4.32% in FY22 (FY21: 4.61%) with a return on capital
employed of 5.2% (5.2%). The marginal decline in the EBITDA margins
owing to higher raw material procurement cost compared to supplies
from its own mine. In FY23, Ind-Ra expects the margins to remain at
a similar level.
Liquidity Indicator - Poor: The company's average maximum
utilization of the fund-based and the non-fund-based working
capital limits was 95.91% and 30.15%, respectively, during the 12
months ended July 2022. Moreover, the company had an elongated net
working capital cycle of 150 days in FY22 (FY21: 123 days) due to a
long inventory holding period of 103 days (65 days). The cash flow
from operations turned negative at INR12 million in FY22 (FY21:
INR20.57 million) due to an increase in working capital
requirement. Consequently, the free cash stood turned negative at
INR10.76 million (INR20.57 million) At FYE22, it had cash and cash
equivalents of INR15.80 million (FYE21: INR0.10 million.
The ratings remain constrained by TCCPL's modest credit metrics.
The interest coverage (operating EBITDA/gross interest expense)
improved to 2.0x in FY22 (FY21: 1.63x) due to a decline in interest
costs. However, the net leverage (total adjusted net debt/operating
EBITDAR) deteriorated to 6.50x in FY22 (FY21: 5.54x) due to an
increase in external borrowing at the end of the year as well as a
decline in the absolute EBITDA to INR12.51 million (INR13.05
million). Ind-Ra expects credit metrics to remain at a similar
level in FY23.However, the ratings remain supported by the
promoter's experience of over two decades in graphite
manufacturing, leading to established relationships with customers
and suppliers.
Rating Sensitivities
Positive: A significant improvement in the scale of operations,
leading to an improvement in the credit metrics on a sustained
basis would lead to a positive rating action.
Negative: A decline in the scale of operations, leading to
deterioration in the credit metrics with the interest coverage
reducing below 2.0x or a further pressure on the liquidity
position, all on a sustained basis, will be negative for the
ratings.
Company Profile
Incorporated in December 2006, TCCPL is engaged in graphite
manufacturing from semi processed graphite. It has an installed
capacity of 3,600TPA and its production capacity is 3,000TPA.
TOKAI ENGINEERING: CARE Keeps C Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Tokai
Engineering Private Limited (TEPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Short Term 1.00 CARE A4; ISSUER NOT
Bank 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 28, 2021,
placed the rating(s) of TEPL under the 'issuer non-cooperating'
category as TEPL 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. TEPL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 14, 2022, May 24, 2022, June 3, 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).
Gurgaon (Haryana) based TEPL was incorporated on July 9, 2006. The
company is currently being managed by Mr. Rajesh Khanna and Mrs.
Shilu Khanna. TEPL is engaged in manufacturing of jigs and
fixtures, testing machines, and special purpose machines. It mainly
caters to automobile companies. Its manufacturing facility is
located in Manesar, Gurgaon (Haryana). The major raw materials of
the company are MS Steel, cylinders, pneumatic items like
compressor etc which it procures from domestic manufacturers and
wholesalers.
VANTAGE BUILDWELL: Voluntary Liquidation Process Case Summary
-------------------------------------------------------------
Debtor: Vantage Buildwell Private Limited
43, Community Centre
New Friends Colony
New Delhi 110025
Liquidation Commencement Date: August 26, 2022
Court: National Company Law Tribunal, New Delhi Bench
Insolvency professional: Ms. Seema Salwan
Interim Resolution
Professional: Ms. Seema Salwan
47, Pusa Road
Ground Floor
Metro Pillar 131
Next to Telephone Exchange
New Delhi 110005
E-mail: seemasalwan.advocate@gmail.com
vl.vantagebuildwell@gmail.com
Tel: 8130700079
011-406222233
Last date for
submission of claims: September 25, 2022
VIBGYOR RETAIL: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Vibgyor Retail Private Limited
Plot No. 853, Phase-V
Udyog Vihar, Gurgaon
Haryana 122016
Insolvency Commencement Date: September 1, 2022
Court: National Company Law Tribunal, Gurugram Bench
Estimated date of closure of
insolvency resolution process: February 26, 2023
Insolvency professional: Mr. Alok Kumar Agarwal
Interim Resolution
Professional: Mr. Alok Kumar Agarwal
605, Suncity Business Tower
Golf Course Road, Sector 54
Gurgaon, Haryana 122002
E-mail: alok@insolvencyservices.in
- and –
C-100, Sector 2
Noida, Uttar Pradesh 201301
E-mail: vibgyor.cirp@gmail.com
Last date for
submission of claims: September 14, 2022
VIKAS PROPPANT: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Vikas Proppant & Granite Limited
Registered office:
Hisar Road, Siwani
Haryana 127046
Other address:
G-237, Udyog Vihar
RIICO Industrial Area
Sri Ganganagar 335002
Rajasthan
Insolvency Commencement Date: August 30, 2022
Court: National Company Law Tribunal, Chandigarh Bench
Estimated date of closure of
insolvency resolution process: February 22, 2023
Insolvency professional: Naresh Kumar Aggarwal
Interim Resolution
Professional: Naresh Kumar Aggarwal
M-806, Emaar Palm Drive
Golf Course Ext. Road
Sector 66, Near Badshahpur Chowk
Gurgaon, Haryana 122018
E-mail: nareshaggarwal375@gmail.com
cirpvpgl1@gmail.com
Last date for
submission of claims: September 13, 2022
VR FOUNDRIES: Ind-Ra Hikes LT Issuer Rating to BB, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded VR Foundries (VRF)
Long-Term Issuer Rating to 'IND BB' from 'IND BB-'. The Outlook is
Stable.
The instrument-wise rating actions are:
-- INR123.24 mil. (reduced from INR280 mil.) Term loan due on
February 2027 upgraded with IND BB/Stable rating;
-- INR150 mil. Fund-based working capital limits Long-term rating
upgraded; short-term rating affirmed with IND BB/Stable/IND
A4+ rating; and
-- INR40 mil. Non-fund-based working capital limits affirmed with
IND A4+ rating.
The upgrade reflects VRF's stronger-than-expected financial
performance in FY22.
Key Rating Drivers
The upgrade reflects an increase in VRF's revenue to INR2,668.62
million in FY22 (FY21: INR1,769.10 million) due to an increase in
the number of orders received and higher prices of metals. During
April to July 2022, VRF achieved a revenue of INR1,092.60 million,
and had an order book of INR922.46 million as of July 2022, to be
executed by October 2022. Ind-Ra expects FY23 revenue to steadily
increase due to a continuous demand.
The ratings also reflect VRF's continued healthy EBITDA margin,
which improved to 9.13% in FY22 (FY21: 8.82%), due to efficiency in
operations. The return on capital employed improved to 23.9% in
FY22 (FY21: 16.3%). In FY23, Ind-Ra expects the EBITDA margin to
remain at a similar level due to the similar nature of orders.
The ratings are constrained by VRF's continued modest credit
metrics even as its gross interest coverage (operating EBITDA/gross
interest expense) improved to 3.96x in FY22 (FY21: 2.10x), and the
net financial leverage (adjusted net debt/operating EBITDA) reduced
to 3.24x (4.64x), due to an increase in EBITDA to INR243.7 million
(INR156.03 million). Ind-Ra expects the credit metrics to improve
in FY23 due to the repayment of term loans.
Liquidity Indicator – Stretched: VRF's average maximum
utilization of the fund-based limits was 95.05% and that of the
non-fund-based was 99.62% during the 12 months ended July 2022. The
cash flow from operations deteriorated to INR34.21 million in FY22
(FY21: INR135.25 million), due to unfavorable changes in the
working capital. The net working capital cycle deteriorated to 11
days in FY22 (FY21: negative 6 days) due to a reduction in creditor
days to 106 (139). VRF has scheduled debt repayments of INR95.6
million and INR36.8 million for FY23 and FY24, respectively. The
cash and cash equivalents stood at INR3.78 million at FYE22 (FYE21:
INR8.56 million). VRF does not have any capital market exposure and
relies on banks and financial institutions to meet its funding
requirements.
The ratings, however, continue to be supported by VRF's promoters'
over three decades of experience in the casting and forging
industry. This has helped the firm to establish strong
relationships with customers as well as suppliers.
Rating Sensitivities
Negative: A decline in the scale of operations and EBITDA margin,
leading to deterioration in the credit metrics with the net
leverage above 4.5x on a sustained basis and/or further pressure on
the liquidity position could lead to a negative rating action.
Positive: An improvement in the scale of operations and EBITDA
margin, along with an improvement in the credit metrics and
liquidity profile will lead to positive rating action.
Company Profile
VRF, incorporated in 1979, is a partnership firm located in
Coimbatore and is engaged in manufacturing of grey iron casting at
a production capacity of 1800,000 molds per annum.
WONDER PEAK: Voluntary Liquidation Process Case Summary
-------------------------------------------------------
Debtor: Wonder Peak Tech Private Limited
Q No. 100, Gurunanakpura Raja Park
Jaipur, Rajasthan 302004
Liquidation Commencement Date: August 17, 2022
Court: National Company Law Tribunal, Jaipur Bench
Insolvency professional: Mr. Sumit Dhadda
Interim Resolution
Professional: Mr. Sumit Dhadda
B-11 Moti Ashirwad Building
Tilak Nagar Jaipur
Rajasthan 302004
E-mail: liquidation.wonderpeak@gmail.com
Tel: 9571704444
Last date for
submission of claims: September 16, 2022
ZAVERI CONSTRUCTIONS: Liquidation Process Case Summary
------------------------------------------------------
Debtor: Zaveri Constructions Private Limited
Shop No. 11, Majithia Apartment
S.V. Road, Irla
Vile Parle (West)
Mumbai MH 400056
IN
Liquidation Commencement Date: August 27, 2022
Court: National Company Law Tribunal, Mumbai Bench
Date of closure of
insolvency resolution process: August 26, 2022
Insolvency professional: Mr. Vikas Prakash Gupta
Interim Resolution
Professional: Mr. Vikas Prakash Gupta
G-19, Shreewardhan Complex
Mezzanine Floor
Besides Landmark Building
Ramdaspeth, Wardha Road
Nagpur, Maharashtra 440010
E-mail: vikas.gupta@bngca.com
- and –
12-B, Khatau Building
1st Floor, Alkesh Dinesh Modi Marg
Mumbai 400023
E-mail: liqoffice.zavericonstructions@
gmail.com
liquidator.zavericonstructions@
gmail.com
Last date for
submission of claims: September 25, 2022
=================
I N D O N E S I A
=================
WIJAYA KARYA: Fitch Cuts IDRs to B+ & Then Withdraws Ratings
------------------------------------------------------------
Fitch Ratings has downgraded Indonesian state-owned contractor PT
Wijaya Karya (Persero) Tbk's (WIKA) Long-Term Foreign- and
Local-Currency Issuer Default Ratings (IDR) to 'B+' from 'BB-'. At
the same time, Fitch Ratings Indonesia has downgraded WIKA's
National Long-Term Rating to 'BBB-(idn)' from 'A-(idn)'. The
Outlook is Stable. Fitch has simultaneously withdrawn all of WIKA's
ratings.
The downgrade follows our downward revision of WIKA's Standalone
Credit Profile (SCP) to 'ccc+'/'bb-(idn)' from 'b-'/'bbb-(idn)'.
The revision reflects WIKA's continued limited financial
flexibility with low EBITDA/interest of 1.0x-1.5x, weak cash flow
generation, and sustained high leverage.
WIKA's IDRs and National Long-Term Rating benefit from a
three-notch uplift from its SCPs. This is underpinned by our
assessment of its linkage strength with the state and the
government's incentive to provide support under Fitch's
Government-Related Entities (GRE) Rating Criteria, which results in
an aggregate support score of 15.
'BBB' National Ratings denote a moderate level of default risk
relative to other issuers or obligations in the same country or
monetary union.
Fitch has chosen to withdraw the ratings of WIKA for commercial
reasons.
KEY RATING DRIVERS
Cash Flow Pressure, Elevated Leverage: Fitch expects WIKA's cash
flow to remain under pressure with negative free cash flow (FCF)
due to slow EBITDA recovery, a long working-capital cycle, and high
capex requirements. Its operating cash flows were negative in 2021
and 1H22 on slow cash collection as some project owners have not
fully recovered from the pandemic. We believe the company will need
to continue to rely on debt to cover its cash flow gap, keeping its
net debt/EBITDA elevated at above 10x over 2022-2023.
WIKA aims to be more selective in bidding for projects with strong
counterparties, as well as scaling back some of its investments in
its subsidiaries. It has also been pursuing several asset recycling
initiatives, such as the divestment of the Cengkareng-Kunciran toll
road and Belawan port in 2022. Proceeds from these asset sales will
aid in improving its liquidity.
Weak Interest Coverage: WIKA's financial flexibility is undermined
by its growing debt and weak coverage. Fitch forecasts
EBITDA/interest to stay low at 1.0x-1.5x in 2022-2023 (2021: 1.5x).
EBITDA has yet to fully recover and interest payment is likely to
be higher on rising interest rates and debt to fund the cash
shortage. Higher interest payments will exacerbate the cash flow
deficits and risk increasing its reliance on debt to bridge the
cash shortfall.
We estimate WIKA will generate an EBITDA margin, including share of
profit from joint operations, of 10%-12% in 2022-2023 (2021: 11%).
Some inflationary pressure on raw-material costs may hamper the
EBITDA recovery in 2022. The company has been communicating with
its project owners to negotiate any necessary price increases where
possible, and is more cautious in project advancement and
execution.
Lower Orders, Prudent Project Selection: We expect WIKA's order
book to be lower at under IDR100 trillion in 2022-2023 as it
intends to be more selective in new contract acquisition and
counterparty selection. The company aims to focus on projects where
owners have adequate financial capacity for smooth cash payment and
healthy profitability for WIKA. The lower order book is likely to
affect WIKA's medium-term growth and scale, but improve underlying
project cash flow. WIKA's order book of IDR67 trillion at end-1H22
was lower than the IDR88 trillion in 2021 and IDR98 trillion in
2020.
'Strong' Status, Ownership and Control: The Indonesian government,
through the Ministry of State-Owned Enterprises, is WIKA's largest
shareholder. It holds 65% of the company's shares and has strong
control over its strategic, investment and operational decisions.
The government also holds a golden share that gives it veto power
over board member appointment and dismissal, profit distribution,
and M&A.
'Weak' Support Track Record: Fitch believes that government
support, while ongoing, has been insufficient for WIKA to maintain
an adequate credit profile during the pandemic. WIKA's financial
profile has weakened materially since 2020 with increasing leverage
and limited coverage. The government last provided an equity
injection to WIKA in 2016 for IDR4 trillion. The company has since
relied on external funding for its projects, supported by solid
relationships with state-owned banks.
'Moderate' Incentive to Support: Fitch regards a default by WIKA as
having 'Moderate' socio-political implications as other state-owned
or private contractors can step in to substitute WIKA's
construction services. However, there may be some disruptions
considering its order-book size of IDR67 trillion at end-June 2022,
45% of which are nationally strategic projects. We also believe
WIKA's default entails 'Moderate' financial implications on the
availability and cost of future financing for the sovereign and its
other GREs. This is based on the company's debt of more than IDR25
trillion.
DERIVATION SUMMARY
WIKA's ratings reflect a three-notch uplift from its SCPs, based on
its aggregate GRE support score of 15. This is in contrast with PT
Hutama Karya (Persero) (HK, BBB-/AA+(idn)/Stable) and PT Indonesia
Asahan Aluminium (Persero) (Inalum, BBB-/Stable), which are rated
one notch below the sovereign's 'BBB' rating based on their GRE
support scores of 35.
Fitch said, "We believe Inalum's default would have 'Very Strong'
implications on the cost and availability of financing to the
Indonesian government and other GREs because investors consider
Inalum a proxy financing vehicle for the state due to its
significant US dollar bond size.
"We assess HK's status, ownership and control, and support record
factors as 'Very Strong', compared with WIKA's 'Strong' and 'Weak',
respectively, to reflect the government's 100% ownership and
greater role and influence in HK's operations. The government
guarantees a substantial portion of HK's debt, and provides
frequent, consistent state capital injections for its toll-road
construction. We also believe that HK's default entails 'Strong'
financial implications of default, compared with WIKA's 'Moderate'
assessment, because HK's debt is guaranteed by the government."
Shanghai Construction Group Co., Ltd. (SCGC, BBB+/Stable) has the
same GRE score as WIKA, but is rated two notches above its SCP,
unlike WIKA's three notches. A default by SCGC would disrupt
construction projects in Shanghai, but social consequences would be
limited due to the city's high urbanisation rate and highly
competitive construction sector. WIKA's default would have a
greater impact on Indonesia's national infrastructure development
plan.
Infrastructure and Energy Alternatives, Inc.'s rating (IEA,
B/Rating Watch Positive) is two notches higher on the international
scale than WIKA's 'ccc+' SCP. IEA has a stronger financial profile
with projected net debt/EBITDA of below 2.0x, EBITDA-based coverage
of above 3.0x and better FCF generation. This is partially offset
by IEA's higher project execution risk as nearly all of its
contracts are on fixed prices and it has experienced cost overruns
in the past.
WIKA's SCP of 'bb-(idn)' is higher than the National Long-Term
Rating of Indonesia-based garment manufacturer PT Pan Brothers Tbk
(CCC-/CCC-(idn)). Pan Brothers faces near-term liquidity pressure
with the maturity of its USD124 million syndication loan in 4Q23.
We expect Pan Brothers' ability to obtain additional bank
facilities to remain challenging due to banks' diminished appetite
to lend to the Indonesian textile sector. WIKA has better funding
options based on its established relationships with state-owned
banks and repeat access to the domestic bond market, with fairly
manageable debt maturity.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
- New contract wins of around IDR30 trillion-35 trillion in 2022
and IDR35 trillion-40 trillion in 2023 (2021: IDR27 trillion);
- EBITDA margin, including share of profit from joint operations,
of around 10%-12% in 2022-2023 (2021: 11%);
- Aggregate capex and investments of around IDR2.5 trillion-3
trillion in 2022.
RATING SENSITIVITIES
Not relevant as the ratings have been withdrawn.
LIQUIDITY AND DEBT STRUCTURE
Adequate Funding Access: WIKA has strong access to bank financing,
especially state-owned banks, and a record of issuing domestic
bonds and sukuk. The company raised IDR7.5 trillion and IDR2.5
trillion in local bonds or sukuk in 2020-2021 and 1H22,
respectively. This will support its liquidity in light of the
absence of major debt amortisation in the next 12 months.
WIKA had IDR3.3 trillion in cash against IDR17.5 trillion in
short-term debt, excluding supply chain financing, at end-1H22.
About IDR16 trillion of the maturing debt was short-term
working-capital loans, which can be rolled over. Refinancing risk
for these short-term working-capital loans should be manageable as
more than 50% of them were funded by state-owned or subsidiaries of
state-owned banks.
WIKA secured an additional IDR340 billion working-capital credit
facility from state-owned PT Bank Tabungan Negara (Persero) Tbk
(AA(idn)/Stable) in 2Q22. Its subsidiary, PT WIKA Tirta Jaya
Jatiluhur, also obtained a IDR1.1 trillion syndicated loan from
state-owned PT Bank Mandiri (Persero) Tbk (BBB-/AA+(idn)/Stable),
PT Sarana Multi Infrastruktur (Persero) (BBB/AAA(idn)/Stable), and
regional government-owned bank PT Bank Pembangunan Daerah Jawa
Barat dan Banten Tbk (A+(idn)/Stable).
ISSUER PROFILE
WIKA, 65%-owned by the state, is one of the largest GRE contractors
in Indonesia with an order book of IDR67 trillion at end-June 2022.
WIKA categorises its business into five main segments:
infrastructure and building, industry, energy and industrial
plants, realty and property, and investments.
RATING ACTIONS
Rating Prior
------ -----
PT Wijaya Karya (Persero) Tbk
LT IDR B+ Downgrade BB-
LT IDR WD Withdrawn B+
Natl LT BBB-(idn) Downgrade A-(idn)
Natl LT WD(idn) Withdrawn BBB-(idn)
LC LT IDR B+ Downgrade BB-
LC LT IDRW D Withdrawn B+
=====================
N E W Z E A L A N D
=====================
C J KEARNS: Creditors' Proofs of Debt Due on Oct. 19
----------------------------------------------------
Creditors of C J Kearns Limited are required to file their proofs
of debt by Oct. 19, 2022, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Sept. 5, 2022.
The company's liquidators are:
Wendy Somerville
Malcolm Hollis
PwC
PwC Centre
109 Ward Street
PO Box 191
Hamilton
CRAZY HORSE: Court to Hear Wind-Up Petition on Oct. 13
------------------------------------------------------
A petition to wind up the operations of Crazy Horse Limited will be
heard before the High Court at Christchurch on Oct. 13, 2022, at
10:00 a.m.
Warissara Matajod filed the petition against the company on
Aug. 24, 2022.
The Petitioner's solicitor is:
Madison Prattley
Community Law Canterbury
198 Montreal Street
Christchurch 8011
DD DRAINAGE: Court to Hear Wind-Up Petition on Sept. 15
-------------------------------------------------------
A petition to wind up the operations of DD Drainage Limited will be
heard before the High Court at Christchurch on Sept. 15, 2022, at
10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on July 5, 2022.
The Petitioner's solicitor is:
Courtney Waddell
Inland Revenue
Legal Services
PO Box 1782
Christchurch 8140
JFC WATERPROOFER: Creditors' Proofs of Debt Due on Oct. 21
----------------------------------------------------------
Creditors of JFC Waterproofer Limited are required to file their
proofs of debt by Oct. 21, 2022, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Sept. 1, 2022.
The company's liquidator is:
Paul Vlasic
Rodgers Reidy (NZ)
PO Box 45220
Te Atatu Peninsula
Auckland 0651
=================
S I N G A P O R E
=================
EVEREST SG: Creditors' Proofs of Debt Due on Oct. 7
---------------------------------------------------
Creditors of Everest SG Pte. Ltd. are required to file their proofs
of debt by Oct. 7, 2022, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Aug. 31, 2022.
The company's liquidators are:
Low Sok Lee Mona
Teo Chai Choo
c/o Low, Yap & Associates
4 Shenton Way
#04-01 SGX Centre 2
Singapore 068807
JAQUAR AND COMPANY: Creditors' Proofs of Debt Due on Oct. 7
-----------------------------------------------------------
Creditors of Jaquar and Company Pte Ltd are required to file their
proofs of debt by Oct. 7, 2022, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Sept. 1, 2022.
The company's liquidator is:
Lam Seng Tiong
c/o 133 New Bridge Road
#24-01/02 Chinatown Point
Singapore 059413
KINGSTON SG: Creditors' Proofs of Debt Due on Oct. 7
----------------------------------------------------
Creditors of Kingston SG Ptd. Ltd. are required to file their
proofs of debt by Oct. 7, 2022, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Aug. 31, 2022.
The company's liquidators are:
Low Sok Lee Mona
Teo Chai Choo
c/o Low, Yap & Associates
4 Shenton Way
#04-01 SGX Centre 2
Singapore 068807
SHEN GLOBAL: Creditors' Proofs of Debt Due on Oct. 7
----------------------------------------------------
Creditors of Shen Global Pte. Ltd. are required to file their
proofs of debt by Oct. 7, 2022, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Aug. 31, 2022.
The company's liquidators are:
Low Sok Lee Mona
Teo Chai Choo
c/o Low, Yap & Associates
4 Shenton Way
#04-01 SGX Centre 2
Singapore 068807
TERAS 336: Members' Final Meeting Set for Oct. 7
------------------------------------------------
Members of Teras 336 Pte Ltd will hold their final meeting on Oct.
7, 2022, at 10:00 a.m., via electronic means.
At the meeting, Oon Su Sun and Lin Yueh Hung, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.
=============
V I E T N A M
=============
VIETNAM: Moody's Upgrades Issuer & Senior Unsecured Ratings to Ba2
------------------------------------------------------------------
Moody's Investors Service has upgraded the Government of Vietnam's
long-term issuer and senior unsecured ratings to Ba2 from Ba3 and
changed the outlook to stable from positive.
The upgrade to Ba2 reflects Vietnam's growing economic strengths
relative to peers and greater resilience to external macroeconomic
shocks that are indicative of improved policy effectiveness, and
which Moody's expects to continue as the economy benefits from
supply chain reconfiguration, export diversification and continued
inbound investment in manufacturing. The rating also reflects a
sounder fiscal footing backed by contained borrowing costs, a
conservative approach to fiscal policy and improved government
liquidity, driven by the ongoing transition from external
concessional borrowing toward longer-dated, low-cost domestic
market financing.
The stable outlook reflects a balance of risks to the rating. On
the positive front, Moody's expects continued improvements in
economic competitiveness to support rising incomes and advancements
in fiscal prudence demonstrated through the execution of a more
systematic, long-term debt management strategy and an increasing
emphasis in fiscal policy on long-term challenges, including
improving worker productivity and mitigating against physical
climate risks. On the downside, the relatively low capitalization
levels of state-owned banks coupled with high domestic credit
growth and potential risks from the real estate sector pose risks
to the real economy in the event of a shock. Uncertainties relating
to regional and global geopolitical tensions, higher imported input
prices and uncertain growth prospects in Vietnam's key trading
partners may also pose limits to external surpluses for Vietnam's
trade-reliant economy.
Concurrent to the action, Vietnam's local- and foreign-currency
ceilings are raised by one notch to Baa2 from Baa3 and Ba1 from
Ba2, respectively. The Baa2 local currency ceiling, three notches
above the sovereign rating, reflects relatively opaque government
decision-making and the significant, though shrinking, government
footprint in the economy, balanced by moderate political risks and
low external imbalances. The foreign currency ceiling at Ba1, two
notches below the local-currency ceiling, reflects existing
constraints to capital flows that point to possible transfer and
convertibility restrictions being imposed at times of perceived
need.
RATINGS RATIONALE
RATIONALE FOR THE Ba2 RATING
INCREASING COMPETITIVENESS AND INTEGRATION WITH GLOBAL VALUE CHAINS
SUPPORT RISING ECONOMIC STRENGTH
The increasing demand for Vietnamese exports through the
coronavirus pandemic underpins the growing competitiveness of
Vietnam's manufacturing sector, which has outperformed regional
peers in the attraction of foreign direct investment (FDI) and has
driven a rapid rise in per capita income. Trade tensions between
the US and China, as well as the supply chain disruptions due to
the waves of lockdowns within China, have accelerated manufacturing
investment in Vietnam given the similarity of Vietnam's exports
compared with China's among Asia-Pacific economies, along with an
ample supply of relatively low-cost labor.
Moody's expects Vietnam's centrality to multiple regional and
bilateral trade agreements to affirm its entrenched position in
global value chains. Vietnam is a party to the Regional
Comprehensive Economic Partnership (RCEP) and the Comprehensive and
Progressive Agreement for Trans-Pacific Partnership (CPTPP) and
bilateral Free Trade Agreements (FTAs) with Korea, and more
recently, with the European Union and the United Kingdom. These
trade agreements will strengthen Vietnam's competitive position in
lower-value products such as footwear, garments and agricultural
goods, while placing it firmly in higher-value-added regional tech
supply chains for smartphones, computers and other electronic
products.
Structural risks to this economic trajectory may emerge over the
next 5-10 years as the existing stock of port, airport, electricity
and railways infrastructure and the working age population, which
will peak around 2035, may be insufficient to absorb large-scale
shifts in supply chains to Vietnam from China and other higher-wage
locations of production. Moody's expects the authorities to seek to
address these challenges through investment in education and worker
training to support higher productivity and employment in higher
value-added activities, while targeting inflows of FDI into sectors
and activities that lead to greater direct spillovers to domestic
suppliers.
FISCAL CAPACITY WILL IMPROVE, SUPPORTED BY PRUDENT DEBT MANAGEMENT
POLICIES AND INCREASED FOCUS ON LONG-TERM RISKS
Fiscal policy effectiveness has improved, including a greater
emphasis on medium-term budget planning and the deepening of
domestic, low-cost financing sources. The National Assembly has
also lowered the statutory public debt ceiling to 60% of GDP from
65% to better anchor debt levels while preserving fiscal
flexibility amid the ongoing economic recovery. However,
transparency regarding contingent liabilities remains limited,
including the size and financial performance of large state-owned
enterprises, and delays in the execution of the government's large
public investment budget are credit constraints.
Despite below-potential growth in 2021, Vietnam's fiscal
performance was stable, recording a 3.4% of GDP deficit with
revenue collection exceeding its target by 16.8% - partially due to
companies' lower than expected uptake of stimulus support measures
such as corporate income tax deferrals. Vietnam's government debt
burden registered a moderate rise to 39.1% of GDP in 2021, higher
than previously forecast but comparable to levels in previous years
and below the statutory public debt ceiling.
For 2022, Moody's expects the fiscal deficit to be marginally
higher at around 3.8%, in line with the Ba-rated median, as the
authorities implement the Socio-Economic Recovery and Development
Program, valued at VND350 trillion ($14.9 billion, or 4.1% of 2021
estimated GDP). The program cuts the value-added tax for most
sectors, provides interest rate subsidies on loans to businesses
and allocates additional expenditure toward public investment in
transport, IT infrastructure, prevention of riverbank and coastal
erosion and other climate change adaptation projects. Moody's
expects Vietnam's fiscal deficit to consolidate to around 2.7% by
2025, with the government debt burden set to decline to around
37%.
Fiscal strength will be further supported by improved government
liquidity and debt affordability, which has been well-anchored by
lower domestic borrowing costs brought on by capital inflows and
high domestic savings that have allowed the government to
increasingly source budget financing from domestic institutional
investors at longer tenors. The average issuance tenor of
government bonds is now nearly 14 years, bringing the average term
to maturity on all outstanding domestic government bonds to more
than 9 years from 2.4 years in 2013.
The authorities are now embedding measures in fiscal policy
planning to address long-term challenges such as environmental
risks, which likely signal a significant increase in capital
expenditure. Moody's assesses that the country has highly negative
credit exposure to physical climate risks including coastal
flooding, droughts and water management risks related to the impact
of industrial pollution, urbanization and hydroelectric development
on the Mekong River, which supports the bulk of Vietnam's rice and
aquaculture output. However, there is greater government policy
focus on these challenges. For example, the government's National
Climate Change Strategy to 2050 will involve multi-ministerial
efforts to reduce Vietnam's greenhouse gas emissions by addressing
energy consumption, forestry and waste management.
RATIONALE FOR THE STABLE OUTLOOK
The stable outlook reflects a balance of risks. On the positive
side, upward credit pressures are driven by expected improvements
in economic strength and fiscal fundamentals that illustrate gains
in policy effectiveness and further integration with global value
chains. However, downward pressures may emerge from external
uncertainties related to slowing global growth and risks in
Vietnam's financial system that may weigh on economic potential.
Specifically, Moody's assesses that the institutional capacity and
frameworks to manage complex emerging risks, such as financial
stability in the nascent corporate bond market, are still evolving.
Financial system risks are amplified by Moody's assessment that
capitalization of Vietnam's banking system remains relatively low,
particularly given uncertainties from exposures to the household
and real estate sectors and a continued rise in corporate leverage.
Domestic credit and domestic banking system assets as a percent of
GDP have increased further to 124% and 187% in 2021 respectively,
among the highest levels among rated sovereigns in the Ba and Baa
tiers. Although the government has been restrained in recent years
in its provision of direct capital support to state-owned banks,
the impact of a banking system credit event would have significant
indirect effects on the economy given the importance of bank
lending to domestic investment, and would undermine foreign
investor confidence in the execution of macroeconomic policies.
This reflects gaps in institutions and governance strength that
will take to time to address, including the limited transparency of
regulatory and economic policies and fiscal accounts, and pending
improvements to the corporate governance of state-owned enterprises
that would lead to their restructuring or divestment.
Although Moody's expects Vietnam's economy to continue to benefit
from FDI inflows and supply chain shifts in the Asia Pacific
region, Vietnam's structural balance of payments surpluses may
narrow over the next two years due to higher commodity prices,
slower growth in Vietnam's largest export markets, rising domestic
investment needs, and higher input costs owing to occasional supply
chain disruptions.
ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS
Vietnam's ESG credit impact score is highly negative (CIS-4 credit
impact score), driven primarily by highly negative environmental
exposures including coastal flooding and water management risk that
may incur losses in major economic centers and increase adaptation
costs over time. Social risk exposure balances demographic
advantages and robust provision of basic public services such as
healthcare against wide skills and income gaps between the rural
and urban populations. Governance limitations including weak
legislative and executive institutions constrain policy
effectiveness and transparency, but have been increasingly balanced
by strengthened fiscal and monetary policy effectiveness that has
helped to increase Vietnam's resilience to shocks.
Vietnam's exposure to environmental risk is highly negative (E-4
issuer profile score), largely reflecting physical climate risks
from potentially adverse exposure to coastal flooding and heat
waves. Over time, rising sea levels and increasing frequency of
severe climate change-related weather shocks pose risks of
significant adaptation and reconstruction costs, while potentially
requiring resettlement of some urban populations. The reliance of a
substantial part of the population on agriculture for employment
exacerbates the potential economic and fiscal impacts of
weather-related shocks, such as flooding and storm surges, as well
as spillovers from the country's large and fast-growing
manufacturing sector, such as pollution. A highly negative exposure
to water management risk also reflects the impacts of upstream
hydropower development and pollution to agricultural production in
the Mekong River Delta.
Vietnam's social risk exposure is moderately negative (S-3 issuer
profile score), balancing Vietnam's favorable demographics compared
with peers with risks to longer-term social stability from the
young workforce's rising expectations of continued improvement in
living standards. The expected decline of the working-age
population from 2037 is also likely to present challenges to growth
and productivity, although government investments in education have
the potential to improve worker skills and productivity over time.
Relative to peers in terms of level of economic development,
Vietnam's government has prioritized provision of housing,
healthcare and education. However, rising levels of economic and
social inequality reflect generally weak provision of social
services, with high levels of undernourishment and lack of access
to clean drinking water.
The moderately negative influence of governance (G-3 issuer profile
score) on Vietnam's credit profile incorporates weak legislative
and executive institutions that reduce the predictability and
transparency of policy, which can hinder investor confidence, while
taking into account the recent track record of effective and
improved economic policymaking that has supported strong growth and
boosted the economy's global competitiveness.
GDP per capita (PPP basis, US$): 11,534 (2021) (also known as Per
Capita Income)
Real GDP growth (% change): 2.6% (2021) (also known as GDP Growth)
Inflation Rate (CPI, % change Dec/Dec): 1.8% (2021)
Gen. Gov. Financial Balance/GDP: -3.4% (2021) (also known as Fiscal
Balance)
Current Account Balance/GDP: -1.1% (2021) (also known as External
Balance)
External debt/GDP: 35.3% (2021)
Economic resiliency: baa3
Default history: No default events (on bonds or loans) have been
recorded since 1983.
On September 1, 2022, a rating committee was called to discuss the
rating of the Vietnam, Government of. The main points raised during
the discussion were: The issuer's economic fundamentals, including
its economic strength, have not materially changed. The issuer's
institutions and governance strength, have materially increased.
The issuer's governance and/or management, have materially
increased. The issuer's fiscal or financial strength, including its
debt profile, has not materially changed.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
FACTORS THAT COULD LEAD TO AN UPGRADE
Moody's would likely upgrade the rating if there are signs that
institutions and governance strength is improving, particularly
with monetary policy and regulatory effectiveness. This could come
about through the improved supervision of the banking system,
reducing contingent liability and financial stability risks. Signs
that Vietnam's economic strength is rising, for instance through
its sustained ability to attract FDI and benefit from global supply
chain restructuring, including the absorption of higher value-added
production with greater linkages to domestic companies, would also
indicate upwards rating pressure.
FACTORS THAT COULD LEAD TO A DOWNGRADE
Moody's would consider a downgrade of the rating as a result of a
re-emergence of financial instability, leading to higher inflation,
a rise in debt-servicing costs or a worsening of the external
payments position. Such signs of stress could be related to the
reversal of the current stabilization in the debt and deficit
trajectory, potentially as a result of a sizable crystallization of
contingent risks from either the banking system or state-owned
enterprises. Furthermore, evidence that a rise in geopolitical
tensions disrupts Vietnam's access to critical manufacturing inputs
or erodes export and FDI competitiveness would be negative for the
rating.
The principal methodology used in these ratings was Sovereign
Ratings Methodology published in November 2019.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
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Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2022. All rights reserved. ISSN: 1520-9482.
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