/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/220914.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, September 14, 2022, Vol. 25, No. 178 Headlines A U S T R A L I A ARMOR SAFETY: First Creditors' Meeting Set for Sept. 16 ELLUME LTD: Owes AUD140MM, New Documents Show GARDENSCAPE DESIGN: First Creditors' Meeting Set for Sept. 16 GOLDENIA DEVELOPMENTS: Second Creditors' Meeting Set for Sept. 19 OLYMPUS TRUST 2022-1: S&P Assigns Prelim. BB+ Rating on Cl. E Notes PALACIO PROPERTY: Second Creditors' Meeting Set for Sept. 16 PREMIUM FRESH: Faces Wind Up Bid from JCDecaux Over Unpaid Debt REDZED TRUST 2021-3: Fitch Hikes Class F Notes Rating to BB+sf RING US: Second Creditors' Meeting Set for Sept. 16 TRISTAR MEDICAL: Placed Into Liquidation C H I N A CHINA EVERGRANDE: Vows to Resume Projects by End of September ROYOLE CORP: Has $5.3MM in Assets Frozen Amid 'Contract Disputes' [*] CHINA: Public Hospitals Face Financial Trouble I N D I A ABAN OFFSHORE: Central Bank Withdraws Insolvency Case ANIK INDUSTRIES: CARE Reaffirms D Rating on INR10cr Long Term Loan ASHWANI GOYAL: CARE Keeps D Debt Rating in Not Cooperating BABA PROJECTS: Ind-Ra Moves 'BB+' Issuer Rating to Non-Cooperating BAIT LOGITECH: CARE Keeps D Debt Ratings in Not Cooperating BHIMA AND BROTHER: Ind-Ra Keeps BB Issuer Rating in Non-Cooperating BLOSSOM INFRASTRUCTURE: Voluntary Liquidation Process Case Summary CFC CARRIERS: CARE Withdraws D Rating on Long Term Loan CHANDNA INFRAPROJECTS: CARE Keeps D Ratings in Not Cooperating CHIRAG VYAPAAR: Liquidation Process Case Summary CHOUHAN AUTOMOBILES: CARE Keeps C Debt Rating in Not Cooperating CREAMCRUST FOOD: CARE Keeps C Debt Rating in Not Cooperating DV LIVING SCIENCE: Voluntary Liquidation Process Case Summary ENERSAN POWER: CARE Keeps D Debt Rating in Not Cooperating FIRESTAR DIAMOND BVBA: Ind-Ra Keeps D Rating in Non-Cooperating FIRESTAR DIAMOND FZE: Ind-Ra Keeps D Rating in Non-Cooperating FIRESTAR DIAMOND INT'L: Ind-Ra Keeps D Rating in Non-Cooperating FIRESTAR DIAMOND LIMITED: Ind-Ra Keeps D Rating in Non-Cooperating FIRESTAR INTERNATIONAL: Ind-Ra Keeps 'D' Rating in Non-Cooperating FORTUNE CARS: CARE Lowers Rating on INR19.50cr LT Loan to D ICOAT PROJECTS: CARE Lowers Rating on INR4cr LT Loan to D IIFL FINANCE: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable INDIAN TRANSFORMERS: Liquidation Process Case Summary INDSIL HYDRO: Ind-Ra Moves 'D' LT Issuer Rating to Non-Cooperating J P AND COMPANY: CARE Keeps C Debt Rating in Not Cooperating KAMAKOOTI AGENCIES: Voluntary Liquidation Process Case Summary KANACHUR ISLAMIC: CARE Keeps C Debt Rating in Not Cooperating KARUNA VENTURES: Ind-Ra Withdraws 'BB-' Long-Term Issuer Rating KERALA INFRASTRUCTURE: Fitch Affirms 'BB' LongTerm IDRs KRUGER M AND E: Voluntary Liquidation Process Case Summary M/S GMA: Ind-Ra Affirms 'B+' Long-Term Issuer Rating MAA PEETAMBRA: CARE Keeps D Debt Rating in Not Cooperating MACK STAR: NCLAT Sets Aside Insolvency Proceedings vs Firm MAHANAGAR TELEPHONE: CARE Cuts Rating on INR9,810.34cr Loan to D MANAPPURAM FINANCE: Fitch Affirms BB- LongTerm IDRs, Outlook Stable METRO AGRO: CARE Keeps D Debt Rating in Not Cooperating MGI INFRA: CARE Withdraws D Rating on Long/Short Term Debts MUTHOOT FINANCE: Fitch Affirms 'BB' LongTerm IDRs, Outlook Stable NAGARJUNA FERTILIZERS: Ind-Ra Moves 'D' Rating to Non-Cooperating NEEL MOTORS: Liquidation Process Case Summary NEMCARE HOSPITAL: CARE Keeps D Debt Rating in Not Cooperating NEWCON ENGINEERS: Insolvency Resolution Process Case Summary NSP ASSOCIATES: Insolvency Resolution Process Case Summary NURNEHER AGRO: CARE Keeps C Debt Rating in Not Cooperating PARASHNATH RE-ROOLLING: CARE Keeps D Ratings in Not Cooperating PATNA BAKHTIYARPUR: Ind-Ra Keeps 'D' Rating in Non-Cooperating PRAMUKH EXIM: ICRA Keeps D Debt Ratings in Not Cooperating RAGHUVANSHI FIBERS: Liquidation Process Case Summary RAJENDRA TRUCKING: CARE Keeps C Debt Rating in Not Cooperating RAMAKRISHNA ELECTRONICS: CARE Keeps D Rating in Not Cooperating RAMEE HOTELS: ICRA Keeps D Debt Ratings in Not Cooperating RATTAN POLYCHEM: CARE Keeps D Debt Ratings in Not Cooperating RBR GARMENTS: Ind-Ra Moves 'BB' Issuer Rating to Non-Cooperating REDDY AND REDDY: CARE Keeps C Debt Rating in Not Cooperating REETHU TOBACCO: CARE Keeps D Debt Rating in Not Cooperating RELISHAH EXPORT: Ind-Ra Affirms 'BB' Long-Term Issuer Rating SAGAR AUTOMOBILES: Insolvency Resolution Process Case Summary SAPTAM DECORE: CARE Withdraws C Rating on Long Term Debt SHRIRAM TRANSPORT: Fitch Affirms 'BB' LongTerm IDRs, Outlook Stable SIX SIGMA: CARE Reaffirms B+ Rating on INR12.21cr LT Loan SPES HOSPITAL: CARE Keeps D Debt Rating in Not Cooperating SWASTIK COAL: CARE Keeps D Debt Ratings in Not Cooperating YCD INDUSTRIES: Ind-Ra Affirms 'BB+' Long-Term Issuer Rating N E W Z E A L A N D AMSTED LIMITED: Court to Hear Wind-Up Petition on Sept. 23 BEST QUALITY: Creditors' Proofs of Debt Due on Oct. 18 HILLSBOROUGH BUILDING: Court to Hear Wind-Up Petition on Oct. 7 RK & JJ: Creditors' Proofs of Debt Due on Oct. 13 SHORE LIVING: Creditors' Proofs of Debt Due on Oct. 5 S I N G A P O R E DFS ASSET: Fitch Assigns BB Rating to Class B Notes Due 2027 JME ENGINEERING: Creditors' Proofs of Debt Due on Oct. 17 KAGOSHIMA SHIPHOLDING: Members' Final Meeting Set for Oct. 9 UNBOUND INNOVATIONS: Creditors' Meetings Set for Sept. 27 - - - - - ================= A U S T R A L I A ================= ARMOR SAFETY: First Creditors' Meeting Set for Sept. 16 ------------------------------------------------------- A first meeting of the creditors in the proceedings of Armor Safety Pty Ltd will be held on Sept. 16, 2022, at 10:30 a.m. virtually via Zoom. Ivan Glavas of Worrells was appointed as administrator of the company on Sept. 6, 2022. ELLUME LTD: Owes AUD140MM, New Documents Show --------------------------------------------- Australian Financial Review reports that Ellume Limited owes investors, staff and other creditors almost AUD140 million, according to new documents presented to creditors on Sept. 12. The Brisbane-based business, which was an IPO hopeful before being placed in voluntary administration earlier this month, had raised capital via numerous convertible note rounds between 2022 and August last year, amassing a total of AUD89 million. The notes had been issued on the premise that they would be repaid via an IPO or trade sale. The business also owes AUD49 million to other creditors and AUD1.7 million to staff, AFR discloses. John Park and Joanne Dunn of FTI Consulting are acting as administrators, and it is understood the details of the liabilities were provided by Ellume management, while administrator investigations are ongoing, according to AFR. The Australian company is the 100% owner of US subsidiary Ellume USA LLC, which has a US$231.8 million contract with the US Department of Defence to supply 20 million COVID-19 rapid antigen test kits. The US business is not part of the administration. Administrators are still calculating the value of the subsidiary, and they are awaiting communications from the US Defence Department about the ongoing supply of rapid tests, which are due on Sept. 15, AFR says. The Australian business was responsible for manufacturing the rapid tests supplied to the US. Slides presented to creditors on Sept. 12 indicated the company had AUD37 million in plant and equipment assets, on top of AUD2.5 million in cash. It is owed less than AUD1 million by debtors and its inventory assets were still being calculated. Despite the company's value being tied to the US contract, the convertible notes were issued by the Australian business. According to AFR, the company continues to trade, with administrators working to either recapitalise the business via a deed of company arrangement, or sell it. Administrators revealed they had secured a funding agreement to support the continued trading of the company via an unnamed third party, the report relays. Founded by clinical care clinician and 2020 Brisbane Young Entrepreneur of the Year Sean Parsons after seeing a need for rapid diagnostic solutions during the 2009 swine flu pandemic, the business has invested more than AUD300 million in its product, with its tests bringing together digital reader and patented virus detection capabilities. But it issued a voluntary product recall in October last year, affecting 2.2 million of its COVID-19 home-testing kits, because of a faulty component affecting 3.3% of its kits. The company had been aiming to list on the ASX in April 2022 via stockbrokers Morgans and Ord Minnett, according to Street Talk. One notable Ellume investor is its director, entrepreneur Paul Darrouzet, who made his fortune selling a stake in Anglo American in 2007, the report discloses. When the business raised its convertible note round in 2021, it did so without a valuation. But, investor sources at the time pegged it at anywhere between AUD500 million and AUD1 billion. The notes came with a 10% per annum interest rate, compounding quarterly, and a 15% default rate; they were set to mature on June 30, 2023. About Ellume Limited Ellume Limited develops, manufactures, and commercializes the next generation of digitally enabled diagnostic products for healthcare professionals and consumers. Joanne Dunn and John Park of FTI Consulting were appointed as administrators of Ellume Limited on Aug. 31, 2022. GARDENSCAPE DESIGN: First Creditors' Meeting Set for Sept. 16 ------------------------------------------------------------- A first meeting of the creditors in the proceedings of Gardenscape Design (Dubbo) Pty Ltd will be held on Sept. 16, 2022, at 11:00 a.m. virtually via Zoom. Steven John Priest and Chris Chamberlain of Chamberlain's SBR were appointed as administrators of the company on Sept. 6, 2022. GOLDENIA DEVELOPMENTS: Second Creditors' Meeting Set for Sept. 19 ----------------------------------------------------------------- A second meeting of creditors in the proceedings of Goldenia Developments Pty Limited has been set for Sept. 19, 2022, at 3:00 p.m. via Zoom and telephone conferencing facilities. 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. 16, 2022, at 4:00 p.m. Stephen Wesley Hathway and Philip Raymond Hosking of Helm Advisory were appointed as administrators of the company on Aug. 17, 2022. OLYMPUS TRUST 2022-1: S&P Assigns Prelim. BB+ Rating on Cl. E Notes ------------------------------------------------------------------- S&P Global Ratings assigned its preliminary ratings to seven classes of prime residential mortgage-backed securities (RMBS) to be issued by Perpetual Corporate Trust Ltd. as trustee of Olympus 2022-1 Trust. Olympus 2022-1 Trust is a securitization of prime residential mortgages originated by Athena Mortgage Pty Ltd. (Athena). This is the first standalone RMBS transaction rated by S&P Global Ratings consisting fully of loans originated by Athena. The preliminary ratings S&P has assigned to the floating-rate RMBS reflect the following factors. The credit risk of the underlying collateral portfolio and the credit support provided to each class of notes are commensurate with the ratings assigned. Note subordination and excess spread provide credit support. S&P's assessment of credit risk considers Athena's underwriting standards and approval process. Its assessment also takes into account Athena's servicing and underwriting standards. The rated notes can meet timely payment of interest and ultimate payment of principal under the rating stresses. Key rating factors are the level of subordination provided, the provision of a liquidity facility, a loss reserve partially funded at transaction close and built up from excess spread, the principal draw function, and the provision of an extraordinary expense reserve. S&P's analysis is on the basis that the rated notes are fully redeemed via the principal waterfall mechanism under the transaction documents by their legal final maturity date, and it assumes the notes are not called at or beyond the call-option date. S&P's ratings also consider the counterparty exposure to National Australia Bank Ltd. as bank account provider and Westpac Banking Corp. as the liquidity facility provider. The transaction documents for the facilities include downgrade language consistent with S&P Global Ratings' counterparty criteria. S&P has also factored into its ratings the legal structure of the trust, which is established as a special-purpose entity and meets its criteria for insolvency remoteness. Preliminary Ratings Assigned Olympus 2022-1 Trust Class A1S, A$74.85 million: AAA (sf) Class A1L, A$195.00 million: AAA (sf) Class A2, A$16.95 million: AAA (sf) Class B, A$4.05 million: AA (sf) Class C, A$3.60 million: A (sf) Class D, A$2.25 million: BBB (sf) Class E, A$0.90 million: BB+ (sf) Class F, A$2.40 million: Not rated PALACIO PROPERTY: Second Creditors' Meeting Set for Sept. 16 ------------------------------------------------------------ A second meeting of creditors in the proceedings of Palacio Property Group Pty Ltd has been set for Sept. 16, 2022, at 11:00 a.m. at the offices of SV Partners Brisbane at 22 Market Street in Brisbane. 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. 15, 2022, at 5:00 p.m. Anne Meagher of SV Partners was appointed as administrator of the company on Aug. 12, 2022. PREMIUM FRESH: Faces Wind Up Bid from JCDecaux Over Unpaid Debt --------------------------------------------------------------- Australian Financial Review reports that French out-of-home advertising giant JCDecaux has applied to have liquidators appointed to a local hospitality business that did not respond to a legal demand for debts owed. According to the report, JCDecaux wants the Federal Court of Australia to appoint Jones Partners managing principal Michael Jones as liquidator of Premium Fresh Meals. No liquidator has been appointed yet, and the matter will go to court next month when Premium Fresh Meals may challenge the wind-up application, or pay the debt before the court date. AFR relates that the application to wind up Premium Fresh Meals has been made over an unpaid debt of just over AUD32,000. According to documents filed with the court, obtained by The Australian Financial Review, a statutory demand for payment of debt was sent on June 21. "The respondent failed to pay the amount of the debt demanded or to secure or compound for that amount to the applicant's reasonable satisfaction within 21 days after the demand was served on the respondent," documents filed on behalf of JCDecaux said. Under the Corporations Act, JCDecaux can use a failure to pay the debt, or non-compliance with the statutory demand, to ask the court to wind up Premium Fresh Meals, AFR states. "A failure to respond to a statutory demand can have very serious consequences for a company. In particular, it may result in the company being placed into liquidation and control of the company passing to the liquidator of the company," the court documents stated. JCDecaux entered Australia in the late 1990s and its biggest contract was with City of Sydney in a deal it held for more than two decades. However, it sensationally lost the contract and became embroiled in a dispute with City of Sydney over the French advertising business' upgrade of Telstra's payphone network, which would have led to digital billboards being installed on payphones across the council area. QMS Media swooped in and won the contract in 2020. However, in September last year, JCDecaux managed to snare the hugely valuable Sydney Trains contract from oOh!Media, the report notes. In 2018, JCDecaux massively expanded its footprint in Australia with the AUD1.2 billion acquisition of the formerly Australian Securities Exchange-listed APN Outdoor. In the 12 months to December 31 last year, JCDecaux reported AUD290.9 million in revenue in Australia. However, it booked a loss of AUD56.3 million, AFR discloses. "During 2021 and 2020, there was a substantial and immediate reduction in revenues as a result of the [COVID-19] crisis. Outdoor advertising is particularly exposed to the restrictions on people movement that have been mandated by the government as a reaction to spikes in transmission of the virus throughout the community," the company report said. "It is expected that as the virus is managed within the community and the implementation of restrictions become less likely, the business will recover quickly as advertisers will need and want to build their brands through our medium and this is expected in 2022 to 2023 when we have forecasted that trading will eventually return to pre-COVID levels." REDZED TRUST 2021-3: Fitch Hikes Class F Notes Rating to BB+sf -------------------------------------------------------------- Fitch Ratings has upgraded five note classes and affirmed another three from RedZed Trust Series 2021-3. Fitch has also removed classes B, C, D, E and F from Under Criteria Observation (UCO), on which they were placed on 6 June 2022 following the publication of the updated APAC Residential Mortgage Rating Criteria. The transaction is backed by first-ranking Australian conforming and non-conforming full- and low-documentation mortgage loans originated by RedZed Lending Solutions Pty Limited. The notes were issued by Perpetual Trustee Company Limited in its capacity as trustee of the series. The upgrades were supported by the updated APAC Residential Mortgage Rating Criteria, published on 2 June 2022, which recalibrated Fitch's house price decline assumptions; strong mortgage performance; deleveraging of the portfolio and the build-up of credit enhancement since the last rating action. The criteria update was the driving factor behind upgrades to the class B (one of the two notches), class C (two of the four notches), class D (two of the three notches), class E (three of the four notches) and class F notes (3 notches). RATING ACTIONS ENTITY / DEBT RATING PRIOR ------------- ------ ----- RedZed Trust Series 2021-3 A-1yr AU3FN0063897 LT AAAsf Affirmed AAAsf A-2yr AU3FN0063905 LT AAAsf Affirmed AAAsf A-3yr AU3FN0063913 LT AAAsf Affirmed AAAsf B AU3FN0063921 LT AAAsf Upgrade AAsf C AU3FN0063947 LT AA+sf Upgrade Asf D AU3FN0063939 LT Asf Upgrade BBBsf E AU3FN0063954 LT BBB+sf Upgrade BBsf F AU3FN0063962 LT BB+sf Upgrade B+sf KEY RATING DRIVERS Resilient Asset Performance: The transaction's 30+ day arrears were 0.4% at end-July 2022. That was below Fitch's 2Q22 Prime Dinkum RMBS Index and Non-Conforming Index arrears of 0.82% and 1.21%, respectively. 90+ day arrears were 0.0%, well below the index's 0.45% and 0.41% for prime and non-conforming, respectively. There has been no losses to-date for the transaction. The 'AAAsf' weighted-average (WA) foreclosure frequency (FF) of 17.6% is driven by the WA unindexed current loan/value ratio (LVR) of 64.8%, low-documentation loans forming 91.6% of the pool and, under Fitch's methodology, non-conforming and investment loans accounting for 12.6% and 48.7%, respectively, of the pool. The 'AAAsf' WA recovery rate (WARR) of 58.9% is driven by the portfolio's WA indexed scheduled LVR of 61.9%. Liquidity Risk Mitigated: Structural features include retention and amortisation amounts that redirect excess income to repay note principal and a liquidity facility sized at 1.5% of the invested note balance, with a floor of AUD600,000; this is sufficient to mitigate payment interruption risk. The notes can withstand all relevant Fitch stresses applied in our cash-flow analysis at their current rating levels. The class F notes were constrained from further upgrade by the large-obligor concentration test. Low Operational and Servicing Risk: RedZed was established in 2006 and is an experienced specialist lender for self-employed borrowers. Fitch undertook an operational review and found that the operations of the originator and servicer were comparable with market standards. Economic Growth Supports Outlook: Performance is supported by Australia's ongoing economic recovery. We expect the country's strong labour market and GDP growth to support transaction performance, despite increasing interest rates. We expect GDP to expand by 4.0% in 2022, with an unemployment rate of 3.9%. GDP growth should normalise to 2.5% in 2023, with an unemployment rate of 4.0%. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: The transaction's performance may be affected by changes in market conditions and the economic environment. Weakening asset performance is strongly correlated with increasing levels of delinquencies and defaults that could reduce credit enhancement available to the notes. Downgrade Sensitivities Unanticipated increases in the frequency of defaults and loss severity on defaulted receivables could produce loss levels higher than Fitch's base case and are likely to result in a decline in credit enhancement and remaining loss-coverage levels available to the notes. Decreased credit enhancement may make certain note ratings susceptible to negative rating action, depending on the extent of the coverage decline. Hence, Fitch conducts sensitivity analysis by stressing a transaction's initial base-case assumptions. The rating sensitivity section provides insight into the model-implied sensitivities the transaction faces when assumptions - WAFF or WARR - are modified, while holding others equal. The modelling process uses the modification of default and loss assumptions to reflect asset performance in up and down environments. The results should only be considered as one potential outcome, as the transaction is exposed to multiple dynamic risk factors. Note: A-1yr / A-2yr / A-3yr / B / C / D / E / F Rating: AAAsf / AAAsf / AAAsf / AAAsf / AA+sf / Asf / BBB+sf / BB+sf Increase defaults by 15%: AAAsf / AAAsf / AAAsf / AAAsf / AA+sf / A-sf / BBB+sf / BB+sf Increase defaults by 30%: AAAsf / AAAsf / AAAsf / AA+sf / AAsf / A-sf / BBBsf / BB+sf Reduce recoveries by 15%: AAAsf / AAAsf / AAAsf / AAAsf / AAsf / BBB+sf / BBBsf / BB+sf Reduce recoveries by 30%: AAAsf / AAAsf / AAAsf / AA+sf / A+sf / BBBsf / BB+sf / BB-sf Increase defaults by 15% and reduce recoveries by 15%: AAAsf / AAAsf / AAAsf / AA+sf / AA-sf / BBB+sf / BBB-sf / BBsf Increase defaults by 30% and reduce recoveries by 30%: AAAsf / AAAsf / AA+sf / AA-sf / A-sf / BBB-sf / BB-sf / Bsf Factors that could, individually or collectively, lead to positive rating action/upgrade: Economic conditions, loan performance and credit losses that are better than Fitch's expectations or sufficient build-up of credit enhancement that would fully compensate for credit losses and cash flow stresses commensurate with higher rating scenarios, all else being equal. The class A-1yr, A-2yr, A-3yr and B notes are at 'AAAsf', which is the highest level on Fitch's scale. The ratings cannot be upgraded and upgrade sensitivity scenarios are not relevant. The rating on the class F notes is constrained by the large obligor concentration test, which limits the rating to two notches below the model implied rating of 'BBBsf'. Prepayments to the loans with the largest obligor loss exposure, which result in the notes passing Fitch's concentration test, could lead to positive rating action for this class of notes, all else being equal. Sensitivity stress results for the remaining rated notes are as follows: Note: C / D / E Rating: AA+sf / Asf / BBB+sf Reduce defaults by 15% and increase recoveries by 15%: AAAsf / AAsf / A+sfx' RING US: Second Creditors' Meeting Set for Sept. 16 --------------------------------------------------- A second meeting of creditors in the proceedings of Ring Us Group Pty Ltd has been set for Sept. 16, 2022, at 11:00 a.m. via virtual meeting. 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. 15, 2022, at 4:00 p.m. Vincent Pirina and Ian Niccol of Aston Chace Group were appointed as administrators of the company on Aug. 12, 2022. TRISTAR MEDICAL: Placed Into Liquidation ---------------------------------------- Sunraysia Daily reports that more than 300 creditors face an uncertain future after Tristar Medical Group was put into liquidation following months of administration. Tristar, which at one stage operated more than 50 medical clinics across Australia and employed hundreds of doctors, nurses and office staff, went into administration in May. Matthew Caddy and Keith Crawford of McGrathNicol were appointed as administrators of Tristar Medical Group Pty Ltd, Tristar Property Holdings Pty Ltd and El-Sheikh Family Holdings Pty on May 24, 2022. ========= C H I N A ========= CHINA EVERGRANDE: Vows to Resume Projects by End of September ------------------------------------------------------------- Bloomberg News reports that China Evergrande Group pledged to resume its remaining stalled projects by the end of the month, as the debt-laden developer tries to allay concerns that prompted some homebuyers to refuse to pay mortgages for unfinished apartments. Bloomberg relates that the company will restart construction on 38 developments by Sept. 30, it said in a statement late Sept. 12, citing Chairman Hui Ka Yan's weekly staff meeting. It has already resumed building on 668 of the total 706 projects, it said. Bloomberg notes that cash-strapped Chinese developers are facing pressure to complete pre-sold homes after angry buyers nationwide stopped making loan payments. The mortgage boycotts could pose a threat to social stability ahead of a Communist Party congress next month, at which President Xi Jinping is expected to seek a third term. According to Bloomberg, Evergrande is at the centre of a credit crunch that has rippled through China's property sector and curtailed growth in the world's second-largest economy. Among its 668 projects that have resumed work, 606 have reached normal construction level, while 62 are in the process of returning to normal and will do so this month, Hui said at the meeting. It's been difficult to assess the scale of the mortgage boycotts since the government in July began censoring crowdsourced documents circulated online, Bloomberg relates. The trend has raised concern that the property crisis could spread to the financial system. Banks face mortgage losses of US$350 billion in a worst-case scenario, S&P Global Ratings has estimated, although lenders posted much smaller overdue loans in the most recent earnings season. Bloomberg says Chinese authorities are taking steps to ensure real estate companies finish apartments. In Zhengzhou city in Henan province, all stalled developments must resume by October 6, the Communist Party-run Dahe News reported last week. The local government is urging builders to raise funds by selling undeveloped land and other assets, according to the report. Financing platforms set up by the local authorities will take over projects of developers who have liquidity difficulties. The central government has also been taking steps to address the issue. Authorities will offer CNY200 billion (US$29 billion) in special loans to ensure stalled housing projects are delivered to buyers, people familiar with the matter said last month, Bloomberg relays. In addition, policymakers are making it easier for some developers to raise funds on the local bond market. Several private real estate companies have issued or planned to issue new domestic bonds with state-owned China Bond Insurance providing full guarantees, the report relays. Developers like Country Garden Real Estate Group, which plans to sell as much as CNY1.5 billion of onshore bonds, listed funding of property projects among their use of proceeds. Last week, Seazen Holdings sold CNY1 billion of three-year notes at a 3.28% yield. The bond, which is guaranteed by China Bond Insurance, was 2.8 times oversubscribed. Yet Evergrande, which defaulted on its offshore debt in December, has not been able to tap the domestic bond guarantee programme and its statement did not say how it was funding the revived construction work, Bloomberg states. Bloomberg adds that the company is actively applying for special purpose loans and trying to receive support fund money for distressed developers, 21st Century Business Herald reported last week, citing an interview with Chief Executive Officer Shawn Siu. It is working with state-backed construction companies in Chongqing and Hefei. Evergrande is working on an offshore debt restructuring plan, which it aims to announce within this year. It failed to deliver a preliminary plan in July as previously promised. 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. ROYOLE CORP: Has $5.3MM in Assets Frozen Amid 'Contract Disputes' ----------------------------------------------------------------- Caixin Global reports that Royole Corp. has had assets worth CNY37 million (US$5.3 million) frozen by a local court due to "contract disputes" with suppliers, as the company struggles with a cash crunch due to poor take-up of its technology by major smartphone makers and mounting losses. Caixin relates that the application to freeze some of Royole's assets was filed by four public relations companies and was approved by the Chaoyang district court in Beijing, according to a court notice published late last month. No further information was given on the nature of the "contract disputes." Royole Corp. is a China-based flexible-screen maker. [*] CHINA: Public Hospitals Face Financial Trouble -------------------------------------------------- Yicai Global reports that a large number of public hospitals in China have faced financial pressure in recent years, largely due to the pandemic, which has also exposed a number of internal management problems. A series of reforms have been taken in response, and hospitals are trying to develop new models in order to cope. Yicai Global relates that 20 of the 31 provincial-level areas of China had a below-zero medical surplus in 2020, and 43.5% of tertiary public hospitals included in the statistics were in the red, up 25.9 percentage points from 2019, according to a report the National Health Commission published in July. Another report from the commission showed that about 40% of the assessed secondary public hospitals made a loss in 2020. Public hospitals get most of their revenue from medical services and fiscal appropriation. "We were in a situation where income and spending were narrowly equal," Chen Fen, head of a hospital in Anhui province, told Yicai Global. "Our concern was that such a delicate balance could be broken amid the uncertainty of Covid-19." Yicai Global relates that Chen said the hospital's expenditure has been increasing while its medical income has been falling in the last three years. In 2019, revenue was about 10% more than spending, with a surplus of about CNY60 million. The surplus fell to CNY10 million in 2020 and last year. Many patients chose not to stay in hospital as hospitalization management procedures became more complex to reduce infection risks during Covid-19, Chen noted. Income from inpatient services used to be two times that of outpatient services. The falling hospitalization revenues have resulted in greater financial pressure since the pandemic. In each year from 2015 to 2020, hospitalization revenue made up over 65 percent of public hospitals' total income, Yicai Global discloses citing China Hygiene Health Statistical Yearbook 2021. Meanwhile, Covid-19 hit government income, making it hard to implement compensation mechanisms for public hospitals. Personnel costs have been rising, increasing in 2020 to 35.4 percent of the CNY4.2 trillion total spending of Chinese public hospitals, the yearbook said. For a public hospital, the average spending on staff in 2020 doubled from that of 2015. Declining revenues at public hospitals has also impacted the salaries of healthcare workers amid the pandemic, the report says. Cash flow has been particularly tight in areas where there have been repeated outbreaks, and as a result some cut salaries to save money. This has led to numerous medical staff leaving their jobs. "In our hospital, the proportion of personnel spending was about 38 percent to 40 percent," the director of a tertiary public hospital told Yicai Global, adding that the hospital has had to appeal to staff to stop them from leaving. Many public hospitals have not been able to hire new employees since the pandemic began, Chen said. After the experience of Covid-19, public hospitals generally hope the government can increase fiscal appropriation. "This is difficult, however, given that local government revenue is also under pressure," Zhuang Yiqiang, a consultant at Guangdong Province Hospital Association and director at Guangzhou Alibi Hospital Management Center, told Yicai Global. The pricing of medical services should be more flexible, suggested Liao Zangyi, associate professor with the School of Political Science and Public Administration at the China University of Political Science and Law. He added that existing prices do not reflect the value of medical services and that public hospitals cannot set prices freely, Yicai Global relays. "In recent years, the growth of China's spending on medical treatment and public health has been slowing," Yicai Global quotes Chen Qiulin, deputy director of the Health Industry Development Research Center at the Chinese Academy of Social Sciences, as saying. "But growth remained at a relatively high level, and in global terms, the spending-to-gross domestic product ratio is at a high level," he added. "So, we should reflect on why it is that amid such huge spending, public hospitals are still losing money." The difficulties caused by the Covid-19 pandemic will drive public hospitals to directly face underlying development problems and establish a new input-output model in line with the direction of medical reform, said Chen Qiulin, adds Yicai Global. ========= I N D I A ========= ABAN OFFSHORE: Central Bank Withdraws Insolvency Case ----------------------------------------------------- Business Standard reports that Central Bank of India has withdrawn insolvency case against Chennai-based Aban Offshore Ltd after the troubled oil rig paid dues under One-time settlement. The company has been in talks with lenders for a debt resolution plan. According to Business Standard, the company, which provides offshore drilling services for exploration and production of oil and gas, has paid an outstanding principal of INR121.78 crore to Central Bank. The public sector lender had filed suit against the company under section seven of Insolvency and Bankruptcy Code 2016 (IBC), the company informed BSE. Lenders who have exposure to ailing the company include Bank of Baroda, Export Import Bank of India and IDBI Bank, according to the firm's annual report for FY22. One senior executive with a private bank said this borrower has been selling oil rigs in stages and paying off dues of the lenders in small amounts, Business Standard relays. The securities or collateral provided for each bank or lender is different. Business Standard says the company embarked on the exercise to sell 14 rigs owned by the Company and its step-down subsidiaries (including five rigs in the current financial year) following Board and shareholder approval. Six rigs have already been delivered and transactions completed, which helped moderate debt, it said in Fy22 report. The Company generated revenues worth INR598.3 crore in 2021-22 compared to the previous year's revenue of INR1,069.4 crore. The company reported a net loss of INR2,689.7 crore in 2021-22 compared with a net loss of INR1,502 crore in 2020-21, the report discloses. At the close of 2021-22, the Company's rigs were operating under a balanced mix of long-term and short-term contracts. Aban Offshore Limited (AOL), the flagship company of Aban group, provides offshore drilling services to companies engaged in exploration and production of oil and gas. AOL is the largest private player in India in the offshore drilling industry and is one of the largest in the world. The company and its wholly owned subsidiaries had a total of 18 assets by the end of March 2021. ANIK INDUSTRIES: CARE Reaffirms D Rating on INR10cr Long Term Loan ------------------------------------------------------------------ CARE Ratings reaffirmed ratings on certain bank facilities of Anik Industries Limited (AIL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 10.00 CARE D Rating removed from Facilities ISSUER NOT COOPERATING category and Reaffirmed Short Term Bank 68.00 CARE D Rating removed from Facilities ISSUER NOT COOPERATING category and Reaffirmed Detailed rationale and key rating drivers The ratings assigned to bank facilities of Anik Industries Limited (AIL) continue to take into account on-going delays in its debt servicing obligation owing to poor liquidity. Rating Sensitivities Positive factors – Factors that could lead to positive rating action/upgrade: * The ability of the company to meet its debt obligation in timely manner for a period of at least consecutive three months. Negative Factors- Not Applicable Detailed description of the key rating drivers Key rating weaknesses * On-going delays in debt servicing: As per results published on stock exchange for quarter ended June 30, 2022, there has been instance of Letter of Credit (LC) devolvement. Furthermore, one of the lenders also informed that there were instances of LC devolvement in the month of June and August 2022. Liquidity: Poor The company's liquidity remained poor marked by delays in servicing of debt obligations. Incorporated in 1976, AIL is engaged in commodity trading and real-estate development, after sale of its dairy business in September 2016. AIL trades in agro commodities such as edible oils, soya bean and wheat. It also engages in trading of other commodities such as coal and also imports crude palm oil and sells the same in bulk after getting it refined through third party refineries. ASHWANI GOYAL: CARE Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Ashwani Goyal (AG) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 9.38 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 August 9, 2021, placed the rating(s) of AG under the 'issuer non-cooperating' category as AG 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. AG continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 25, 2022, July 5, 2022, July 15, 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). AG is a proprietorship firm established by Mr. Ashwani Goyal in 2004. However, the firm commenced the development of 4 Star hotel project in 2013 with total capacity of 75 rooms and other facilities such as bar restaurant, banquet, gymnasium and health zone. BABA PROJECTS: Ind-Ra Moves 'BB+' Issuer Rating to Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has migrated Baba Projects Private Limited's Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR50 mil. Bank overdraft migrated to non-cooperating category with IND BB+ (ISSUER NOT COOPERATING) rating; and -- INR290 mil. Non-fund-based working capital limit migrated to non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on July 27, 2021. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. Company Profile Incorporated in December 2005, Jharkhand-based Baba Projects undertakes civil construction projects for railways, highways, rural road construction, and flood divisions. BAIT LOGITECH: CARE Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of Bait Logitech Private Limited (BLPL) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 5.50 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 6.60 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 25, 2021, placed the rating(s) of BLPL under the 'issuer non-cooperating' category as BLPL 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. BLPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 11, 2022, May 21, 2022, May 31, 2022. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Bait Logitech Private Limited (BLPL) was incorporated in the year 2010 by promoters named Mr. Brahmananda Mishra and with its office located Khordha , Odisha. Since its inception, the company has been engaged in several business activities such as trading of iron ores, construction of buildings, fabrication and erection of industrial structures, and transportation services. The company mainly generates income from trading of iron ores. This apart, the company also generates income from transportation services and also from civil construction, fabrication and erection job. Both the directors (Mr. Brahmananda Mishra and Mr. Bimal Krushna Mishra) have more than 25 years of experience in these industries. Both of them look after the day to day operations of the entity along with other technical and non-technical professionals who are having long experience in this industry. BHIMA AND BROTHER: Ind-Ra Keeps BB Issuer Rating in Non-Cooperating ------------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Bhima and Brother Bullion Private Limited's Long-Term Issuer Rating of 'IND BB (ISSUER NOT COOPERATING)' in the non-cooperating category and has simultaneously withdrawn it. The instrument-wise rating action is: -- INR1.320 bil. Fund-based working capital limit** maintained in the non-cooperating category and withdrawn. **Maintained at 'IND BB (ISSUER NOT COOPERATING)'/'IND A4+ (ISSUER NOT COOPERATING)' before being withdrawn. Key Rating Drivers The ratings have been maintained in the non-cooperating category before being withdrawn because the issuer did not participate in the rating exercise, despite repeated requests by the agency, and has not provided information about interim financials, sanctioned bank facilities and utilization, business plan, and projections for next three years, information on corporate governance, and management certificate. Ind-Ra is no longer required to maintain the ratings, as the agency has received a no-objection certificate from all lenders. This is consistent with the Securities and Exchange Board of India's circular dated March 31, 2017 for credit rating agencies. Company Profile Bhima and Brother Bullion began its operations as a partnership firm in 1925 and was converted into a private limited company in 2012. The company is engaged in the retail of gold and diamond jewelry, gold bullions and silver articles. BLOSSOM INFRASTRUCTURE: Voluntary Liquidation Process Case Summary ------------------------------------------------------------------ Debtor: Blossom Infrastructure Private Limited 43, Community Centre New Friends Colony New Delhi 110025 Liquidation Commencement Date: August 29, 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 liquidator.bipl@gmail.com Tel: 8130700079 011-40622233 Last date for submission of claims: September 28, 2022 CFC CARRIERS: CARE Withdraws D Rating on Long Term Loan ------------------------------------------------------- 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 - Rating continues to remain Facilities 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 on 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. CHANDNA INFRAPROJECTS: CARE Keeps D Ratings in Not Cooperating -------------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of Chandna Infraprojects India Private Limited (CIIPL) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 9.50 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 0.50 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 CIIPL under the 'issuer non-cooperating' category as CIIPL 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. CIIPL 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). Jaipur (Rajasthan) based CIIPL, incorporated in 2010, is a part of Chandna Group which is engaged primarily in the mining of marbles and granites as well as cutting and processing of marbles since 2000. CHIRAG VYAPAAR: Liquidation Process Case Summary ------------------------------------------------ Debtor: Chirag Vyapaar Private Limited 14 Roop Chand Roy Street 1st Floor Kolkata 700007 Liquidation Commencement Date: August 30, 2022 Court: National Company Law Tribunal, Kolkata Bench Date of closure of insolvency resolution process: May 21, 2022 Insolvency professional: Daulat Ram Jain Interim Resolution Professional: Daulat Ram Jain 33 Shakespeare Sarani Kolkata 700017 E-mail: daulatjain@rediffmail.com chiraag.rp@gmail.com Last date for submission of claims: September 30, 2022 CHOUHAN AUTOMOBILES: CARE Keeps C Debt Rating in Not Cooperating ---------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Chouhan Automobiles LLP (CAL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 20.50 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated June 22, 2021, placed the rating(s) of CAL under the 'issuer non-cooperating' category as CAL 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. CAL 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). Bhilai (Chhattisgarh) based, Chouhan Automobiles LLP (CAL) was established as a partnership firm in June 2017 and the firm has been engaged in dealership business of automobiles. CREAMCRUST FOOD: CARE Keeps C Debt Rating in Not Cooperating ------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Creamcrust Food Products Company (CFPC) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 5.00 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category Long Term/ 1.00 CARE C; Stable/CARE A4; Short Term ISSUER NOT COOPERATING; Bank 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 13, 2021, placed the rating(s) of CFPC under the 'issuer non-cooperating' category as CFPC 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. CFPC continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 29, 2022, June 8, 2022, June 18, 2022. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Patan-based (Gujarat), CFPC was established in 2015 by Mr. Ismailbhai Dauwa, Mr. Akbarali Dauwa, Mr. Muktarhusen Dauwa and Mr Zakirhussain Dauwa. CFPC was established to manufacture premium quality ice-creams and it will sell ice-creams under the brand name 'Cream Crust'. Initially, it commenced operations from small manufacturing unit in Ahmedabad (Gujarat) from January 2016. The facility is located at Siddhpur in Patan district of Gujarat with installed capacity of 36 lac liters ice-cream per annum. DV LIVING SCIENCE: Voluntary Liquidation Process Case Summary ------------------------------------------------------------- Debtor: DV Living Science Enterprises Private Limited New No. 17 (Old No. 8A) Bishop Wallers Avenue (West) Mylapore Chennai 600004 Liquidation Commencement Date: August 27, 2022 Court: National Company Law Tribunal, Chennai Bench Insolvency professional: Chitra Perinkulam Ragavan Interim Resolution Professional: Chitra Perinkulam Ragavan "Anurag", Old No. 16, New No. 7 Appadurai Street, Seethamma Colony Teynampet, Chennai 600018 Tamilnadu E-mail: chitraprc@yahoo.com Mobile: +919841080995 Last date for submission of claims: September 26, 2022 ENERSAN POWER: CARE Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Enersan Power Private Limited (EPPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 42.35 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 02, 2021, placed the rating(s) of EPPL under the 'issuer non-cooperating' category as EPPL 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. EPPL 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). Incorporated in May 2013, EPPL is promoted by Mr. Kishor Virangama and Mr. Dipak Sangani and operates a 10 megawatt (MW) solar power plant in the Kutch region of Gujarat. In March 2014, EPPL entered into a PPA, for entire power produced for 25 years with SECI, a Government of India (GoI) undertaking under the administrative control of Ministry of New and Renewable Energy (MNRE), under the Jawaharlal Nehru National Solar Mission (JNNSM) Phase II Batch I with VGF support. FIRESTAR DIAMOND BVBA: Ind-Ra Keeps D Rating in Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Firestar Diamond BVBA's bank loan rating in the non-cooperating category. The issuer did not participate in the rating exercise, despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating action is: -- INR3,811.056 bil. (USD48)^ Fund-based working capital facilities (Long-term/Short-term) maintained in the non- cooperating category with IND D (ISSUER NOT COOPERATING) rating; Note: ISSUER NOT COOPERATING: The ratings were last reviewed on April 19, 2018. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. ^Reserve Bank of India reference rate dates September 2, 2022: USD1 = INR79.3970 Company Profile Firestar Diamond BVBA is a step-down subsidiary of Firestar International Private Limited ('IND D (ISSUER NOT COOPERATING)'), a global diamond and jewelry company founded by Nirav Modi. FIRESTAR DIAMOND FZE: Ind-Ra Keeps D Rating in Non-Cooperating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Firestar Diamond FZE's bank loan ratings in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating action is: -- INR8,813.067bil. (USD111)^ Fund-based working capital facilities (Long-term/Short-term) maintained in non- cooperating category with IND D (ISSUER NOT COOPERATING) rating; ^Reserve Bank of India Reference Rate dates September 2, 2022: USD1 = INR79.3970 Note: ISSUER NOT COOPERATING: The ratings were last reviewed on April 19, 2018. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. Company Profile Firestar Diamond FZE is a step-down subsidiary of Firestar International Private Limited (IND D(ISSUERNOT COOPERATING)), which is a global diamond and jewelry company founded by Nirav Modi. FIRESTAR DIAMOND INT'L: Ind-Ra Keeps D Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Firestar Diamond International Private Limited's bank loans' ratings in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR3.824 bil. Fund-based working capital facilities (Long- term/Short-term) maintained in the non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; -- INR1.059 bil. Non-fund-based working capital facilities (Short-term) maintained in the non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on February 20, 2018. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. Company Profile Firestar Diamond International was incorporated in 2006 as a jewelry manufacturing company for exports. It operates Firestar International Private Limited's (a global diamond and jewelry company founded by Nirav Modi) domestic retail business, which functions under the Nirav Modi brand. FIRESTAR DIAMOND LIMITED: Ind-Ra Keeps D Rating in Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has maintained Firestar Diamond Limited, Hong Kong's bank loan ratings in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- INR2,778.895 bil. (USD35)^ Fund-based working capital facilities (Long-term/Short-term) maintained in the non- cooperating category with IND D (ISSUER NOT COOPERATING) rating. ^Reserve Bank of India Reference Rate as of September 2, 2022: USD 1 = INR79.3970 Note: ISSUER NOT COOPERATING: The ratings were last reviewed on April 19, 2018. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. Company Profile Firestar Diamond is a step-down subsidiary of Firestar International Private Limited ('IND D (ISSUER NOT COOPERATING)'), a global diamond and jewelry company founded by Nirav Modi. FIRESTAR INTERNATIONAL: Ind-Ra Keeps 'D' Rating in Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has maintained Firestar International Private Limited's 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. 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: -- INR17.132 bil. Fund-based working capital facilities (Long- term/Short-term) maintained in the non-cooperating category with IND D (ISSUER NOT COOPERATING)rating; and -- INR2.272 bil. Non-fund-based working capital facilities (Short-term) maintained in the non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on April 19, 2018. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. Company Profile Firestar International, founded by Nirav Modi, is a global diamond and jewelry company. FORTUNE CARS: CARE Lowers Rating on INR19.50cr LT Loan to D ----------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Fortune Cars Private Limited (FCPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 19.50 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category and Revised from CARE C; Stable Short Term Bank 0.70 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category and Revised from CARE A4 Detailed Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated July 2, 2021, placed the rating(s) of FCPL under the 'issuer non-cooperating' category as FCPL 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. FCPL 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). The ratings assigned to the bank facilities of FCPL have been revised on account of delays in debt servicing as recognized from publicly available information i.e. FY21 Annual report available from ROC Filings. Fortune Cars Private Limited (FCPL), incorporated in November, 1996 was co-founded by Mr. Vinod Sharma, Mr. R.P. Mungrikar, Mr. S. Premkumar and Mr. N. Subramanium. During 1996-2000, FCPL was authorized dealer for DAEWOO Motors Limited for selling passenger cars. Since July 2000, FCPL became authorized dealer for TATA Motors Limited (TML) for selling passenger vehicles such as Indica, Indigo, Nano, UV and Fiat in Mumbai, Thane and Nerul. Besides, it is engaged in the servicing of vehicles and sale of spare parts for TML. The promoters have been involved in the auto dealership sector since 1986 through another group company viz. Unitech Automobiles Private Limited which is an authorized dealer for TML's commercial vehicles for Mumbai, Thane and Raigad district. ICOAT PROJECTS: CARE Lowers Rating on INR4cr LT Loan to D --------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of ICoat Projects Private Limited (IPPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 4.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category and Revised from CARE B-; Stable Short Term Bank 700.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category and Revised from CARE A4 Detailed Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated July 16, 2021, placed the rating(s) of IPPL under the 'issuer non-cooperating' category as IPPL 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. IPPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 1, 2022, June 11, 2022, June 21, 2022 and August 30, 2022. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings assigned to the bank facilities of IPPL have been revised on account of defaults recognized from Annual Report of FY20, available from register of companies. Icoat Projects Private Limited (IPPL) was incorporated in the year 2007 (erstwhile Icoat technologies India Pvt. Ltd, the company's name has changed to current nomenclature IPPL in 2012). IPPL is promoted by Mrs Pranitha Kumari, Mr. D.Vishnu Vardhan Reddy and Mr. B. Srinivas Rao. The company is engaged in the trading of modular wall panels and ceiling panels and also provides erection and installation works for transmission towers and substations within the range of 33kv to 132kv. Furthermore, the company also undertakes electrical works for commercial buildings government while participating in tenders. IIFL FINANCE: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable ------------------------------------------------------------- Fitch Ratings has affirmed India-based IIFL Finance Limited's Long-Term Issuer Default Rating (IDR) at 'B+' with a Stable Outlook. The ratings on IIFL Finance's medium-term note programme and senior secured debt have also been affirmed at 'B+' with a Recovery Rating of 'RR4'. KEY RATING DRIVERS Standalone Profile Drives Ratings: IIFL Finance's Long-Term IDR is derived from its standalone credit profile and reflects its moderate domestic franchise, confidence-sensitive funding and Fitch's view of lingering risk in the construction and real-estate loan portfolio, even as overall asset quality continues to recover from the effects of the Covid-19 pandemic. This is partly counterbalanced by acceptable earnings performance, loss-absorption buffers and a liquidity cushion held to mitigate debt rollover risk. Broader Recovery, but Risks Linger: Fitch said, "We expect asset quality to improve further as India's economy regains momentum. Loan impairment costs eased to 2.6% of average loans in the financial year ending March 2022 (FY22), from 3.5% in FY21, and leading asset-quality indicators continue to improve. External inflationary, monetary and growth pressures raise economic headwinds, but we expect GDP growth to remain resilient at 7%-8% in FY23." A rebound in housing demand should also benefit IIFL Finance's construction finance portfolio. Some early warning indicators have improved for this segment, but Fitch does not believe problem exposures have been fully addressed. This continues to constrain IIFL Finance's rating. Manageable Margin Pressure: Fitch said, "We expect profitability to remain resilient in the coming year, backed by stronger loan growth and manageable net interest margin compression. IIFL Finance's net interest margin tend to be wide, like that of many non-bank financial institutions (NBFIs) in India, giving it room to absorb higher funding costs. Its high lending yields and partly floating-rate loan book should also enable it to pass on a moderate increase in interest rates to borrowers." Off-Book Lending Tempers Leverage: Leverage should remain contained in the near-term as IIFL Finance continues to tap off-balance-sheet funding to finance growing loan demand. Loan assignments, or sell-downs, and co-lending arrangements with banks funded around 35% of loans under management at end-1QFY23. This, along with steady profit generation, should support capital adequacy. Debt/tangible equity of 5.5x at FYE22 remained within Fitch's tolerance for the rating level. Confidence-Sensitive Funding: The rating reflects Fitch's view that IIFL Finance's wholesale-funded book is more confidence-sensitive than that of higher-rated peers. Fitch said, "We also consider that liquidity coverage has fluctuated over the past one to two years, narrowing at times due to weaker loan collections and tighter funding markets. Against this, greater funding diversity, longer funding tenors, off-balance-sheet sources and liquid asset coverage of close to six months of upcoming maturities mitigate rollover risk in times of market stress." RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: - A significant weakening in credit quality that results in gross impaired and restructured loans rising above 7.0% of the portfolio (FY22: 4.2%, incorporating tightened impairment recognition regulation announced in November 2021) - A deterioration in short-term liquidity and reduced funding access. In particular, insufficient liquidity buffers ahead of the remaining USD324 million bond maturity in April 2023 - Debt/tangible equity exceeding 7.0x or a liquidity buffer of less than three months of upcoming debt repayments without a clear path to improvement, although Fitch does not expect such deterioration in the near-term barring another prolonged economic shock. Factors that could, individually or collectively, lead to positive rating action/upgrade: - Continued construction progress in the real-estate finance portfolio - Debt/tangible equity remains below 6.0x - Liquid asset buffers - comprising unrestricted cash, high- quality liquid assets and committed undrawn facilities - consistently cover at least six months of upcoming debt maturities - Estimated liquidity, including loan collection inflows, remain sufficient to cover more than 12 months of upcoming maturities under Fitch's stress scenario - The operating environment remains supportive, and asset quality, earnings and funding conditions remain steady. DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS The MTN programme and foreign-currency senior secured debt are rated at the same level as the Long-Term Foreign-Currency IDR, in accordance with Fitch's rating criteria. The debt of Indian NBFIs is usually secured and we believe non-payment of the senior secured debt would best reflect the entity's uncured failure. NBFIs can issue unsecured debt in the offshore market, but such debt is likely to form a small part of total funding and cannot be viewed as NBFIs' primary financial obligation. The senior secured debt carries a Recovery Rating of 'RR4'. This reflects Fitch's expectation of 'Average' recovery prospects in the event of default and is in line with Fitch's criteria for entities with a Long-Term IDR of 'B+' or below. DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES Any change in the Long-Term Foreign-Currency IDR would lead to a corresponding change in the MTN programme and senior secured debt ratings. The debt and programme ratings may also be downgraded if we believe recovery prospects are likely to weaken to below 30%. The Recovery Rating would be revised to 'RR5' in such a scenario, although this is not our base case. ESG CONSIDERATIONS IIFL Finance has an ESG Relevance Score of '3' for Customer Welfare, compared with the standard score of '2' for the finance and leasing sector. This reflects the company's retail-oriented business model, which exposes it to risks around fair lending practices and pricing transparency as well as repossession, foreclosure and collection practices. Aggressive practices in these areas may subject the company to legal, regulatory and reputational risk that may weaken its credit profile. The score reflects Fitch's view that these risks are adequately managed by the company and have a low impact on its credit profile at present. 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. INDIAN TRANSFORMERS: Liquidation Process Case Summary ----------------------------------------------------- Debtor: Indian Tansformers Company Limited Plot no. A-19, w-7/w-8 MIDC Tarapur IND Boisar, Palghar Maharashtra 401506 Liquidation Commencement Date: September 5, 2022 Court: National Company Law Tribunal, Mumbai Bench Date of closure of insolvency resolution process: September 5, 2022 Insolvency professional: Mr. Ankur Kumar Interim Resolution Professional: Mr. Ankur Kumar Office No. 18, 10th Floor Pinnacle Corporate Park Bandra Kurla Complex Bandra (e), Mumbai 400051 E-mail: ankur.srivastava@ezylaws.com -itcl-cirp@ezylaws.com Last date for submission of claims: October 4, 2022 INDSIL HYDRO: Ind-Ra Moves 'D' LT Issuer Rating to Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has migrated Indsil Hydro Power and Manganese Limited's Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR33 mil. Term loan (Long-term) due on March 2021 migrated to non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; -- INR825.5 mil. Fund-based facilities (Long-term/Short-term) migrated to non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR147.5 mil. Non-fund-based facilities (Short-term) migrated to non-cooperating category with IND D (SSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on August 16, 2021. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. Company Profile Incorporated in 1990 and promoted by S N Varadarajan, Indsil Hydro Power and Manganese manufactures ferro alloys and operates hydro and thermal power plants. The company produces low carbon silicon manganese/medium carbon silicon manganese and ferro chrome from its Palakkad (Kerala), Raipur and Andhra Pradesh plants. J P AND COMPANY: CARE Keeps C Debt Rating in Not Cooperating ------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of J P and Company (JPC) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 12.00 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 13, 2021, placed the rating(s) of JPC under the 'issuer non-cooperating' category as JPC 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. JPC continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 29, 2022, June 8, 2022, June 18, 2022. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Indore-based JPC was originally formed in 2013 as a partnership concern by Maltani Family. However, in December, 2015, the firm was taken over by Wadhwani Family. JPC was established with an objective to set up a hotel in Indore (Madhya Pradesh). The hotel will have facility of total 121 rooms includes; 89 Typical Rooms, 30 Jr. Suite rooms, 2 Suite rooms along with separate Vegetarian and Non-Vegetarian restaurant, Gym, Swimming Pool, 3 banquet hall and bar. JPC has envisaged that project will be completed in the month of May, 2017 and is expected to commence its operations from May, 2017. KAMAKOOTI AGENCIES: Voluntary Liquidation Process Case Summary -------------------------------------------------------------- Debtor: Kamakooti Agencies Private Limited Plot No. 590, New No. 30 Alagirisamy Salai K.K. Nagar, Chennai 600078 Tamilnadu Liquidation Commencement Date: September 1, 2022 Court: National Company Law Tribunal, Coimbatore Bench Insolvency professional: Vasudevan Gopu Interim Resolution Professional: Vasudevan Gopu 18/30, Ramani Street K.K. Pudur, Saibaba Colony Coimbatore 641038 Tamilnadu E-mail: vasudevangopu.ip@gmail.com vasudevanacs@gmail.com Tel: 0422-4347063 Last date for submission of claims: October 1, 2022 KANACHUR ISLAMIC: CARE Keeps C Debt Rating in Not Cooperating ------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Kanachur Islamic Education Trust (KIET) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 140.00 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 13, 2021, placed the rating(s) of KIET under the 'issuer non-cooperating' category as KIET 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. KIET continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 29, 2022, June 8, 2022, June 18, 2022. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Incorporated in 2001, KIET was founded by Mr. U. K. Monu along with his family members, to set up educational institute in Mangalore. Initially it started with a school (affiliated to CBSE board) in the year 2001, and over the years, it has started two new educational institutes, Kanachur PU College and Kanachur Institute of Management Science. In the year 2016-17, the Trust started medical college and hospital. The Trust's campus is spread across 25 acres in the outskirts of Mangalore and runs about 7 educational institutions. KARUNA VENTURES: Ind-Ra Withdraws 'BB-' Long-Term Issuer Rating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn the rating of Karuna Ventures Private Limited's non-convertible debentures (NCDs) as follows: -- The IND BB-/Stable rating on the INR500 mil. Series I NCDs ISIN INE0J6707019 issued on October 18, 2021 coupon rate 9.15% due on October 18, 2023 is withdrawn; -- INR750 mil. Series II NCDs ISIN INE0J6707027 issued on October 28, 2021 coupon rate 9.15% due on November 28, 2024 is withdrawn; and -- INR750* mil. Series II NCDs is withdrawn; *INR750 million of Series II NCDs have not been issued as envisaged Key Rating Drivers Ind-Ra is no longer required to maintain the rating as the Series I and Series II NCDs have been paid in full and Ind-Ra has received the no-dues certificate for the same. Company Profile Incorporated on August 7, 2009, Karuna Ventures provides management & business consultancy services, and construction services of commercial buildings. The company is wholly owned by Arun Kumar Pillai and his family. KERALA INFRASTRUCTURE: Fitch Affirms 'BB' LongTerm IDRs ------------------------------------------------------- Fitch Ratings has affirmed Kerala Infrastructure Investment Fund Board's (KIIFB) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) at 'BB'. The Outlook is Stable. Fitch has also affirmed KIIFB's INR50.0 billion medium-term note (MTN) programme and the INR21.5 billion 9.723% senior secured notes due 2024 under the programme at 'BB'. The notes, issued by KIIFB directly, are unconditionally and irrevocably guaranteed by India's State of Kerala (BB/Stable) acting through the Finance Department of Kerala. KEY RATING DRIVERS 'Very Strong' Status, Ownership, Control: KIIFB is a statutory body set up and wholly owned by the government of Kerala under the Kerala Infrastructure Investment Fund Act, 1999. KIIFB has a special legal status whereby its liabilities are automatically transferred to the state in a default. KIIFB follows the government of Kerala's plan to finance and implement various infrastructure projects and its board consists of existing and former government officers as well as independent members. In addition, a fund trustee and advisory commission acts as KIIFB's trustee to ensure there is no diversion of funds. Fitch does not expect changes to KIIFB's status, ownership and control over the medium term. 'Very Strong' Support Record: The state government by law guarantees the payment of principal and interest on any funds that KIIFB proposes to raise. In addition, the state government has created a dedicated ringfenced fund to help KIIFB's debt servicing. The fund draws on the entire petroleum cess and a progressive step-up share of up to 50% of the motor-vehicle tax collected by the state. There is no legal, regulatory or policy restrictions on government support. Fitch expects the government to maintain its very strong financial support to KIIFB. 'Strong' Socio-Political Default Implications: Fitch's assessment reflects KIIFB's designation by the state government as the exclusive financing vehicle for critical infrastructure-development projects. The projects span various public sectors, including transportation and urban infrastructure development, power generation, agriculture, education and healthcare. The development of these sectors is crucial to improve Kerala's living standards and for its sustainable economic growth. It is difficult to find substitutes for KIIFB in the short-to-medium term and Fitch believes a default would threaten KIIFB's ability to carry out its operations, which would have strong socio-political implications for the state. 'Very Strong' Financial Default Implications: KIIFB is a proxy financing platform for large and capital-intensive state projects. KIIFB had approved projects with total investment exceeding INR730 billion as of end-July 2022 and made project disbursements of around INR208 billion. Fitch regards KIIFB's creditworthiness as directly linked to that of the state government, with the direct guarantee embedded in the Kerala Infrastructure Investment Fund Act, 1999. KIIFB's insolvency directly affects the state government's credibility. DERIVATION SUMMARY Under Fitch's Government-Related Entities (GRE) Rating Criteria, KIIFB's GRE support score is assessed at 50 points, reflecting a combination of a 'Very Strong' assessment for status, ownership and control, support record and financial implications of default, and 'Strong' assessment for socio-political implications of default. In addition, KIIFB's debt is 100% guaranteed by the government of Kerala, which leads to its ratings being equalised with those of Kerala, irrespective of KIIFB's standalone credit profile. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: - An upgrade of Fitch's assessment of the creditworthiness of Kerala may trigger a positive rating action on KIIFB. Factors that could, individually or collectively, lead to negative rating action/downgrade: - A significant weakening of KIIFB's strategic importance to the state, dilution of the state government's shareholding and/or reduced state government support, may result in a downgrade; - A downgrade may also stem from weaker fiscal performance or increased indebtedness of Kerala, leading to a deterioration in its creditworthiness. Any rating action on KIIFB's IDRs would result in a similar action on the ratings of the MTN programme and the drawdowns. ISSUER PROFILE KIIFB was founded in November 1999. The Kerala Infrastructure Investment Fund Act was amended in 2016, under which KIIFB was empowered to raise money through financial instruments approved by the Securities and Exchange Board of India and the Reserve Bank of India, to accelerate the state's infrastructure investment. KRUGER M AND E: Voluntary Liquidation Process Case Summary ---------------------------------------------------------- Debtor: Kruger M and E Industries (India) Private Limited Gut No. 329A, 330, 332, 333A, 336B & 336C Village Kalamgaon, Tal Shahapur Thane 121601 Maharashtra, India Liquidation Commencement Date: July 29, 2022 Court: National Company Law Tribunal, Mumbai Bench Insolvency professional: Mr. Venugopal Madhavan Panicker Interim Resolution Professional: Mr. Venugopal Madhavan Panicker A-801, Neel Sidhi Tower Sector 12, Plot 195 Vashi, Navi Mumbai 400703 India E-mail: vmprmc@gmail.com Tel: +91-9820083003 Last date for submission of claims: August 28, 2022 M/S GMA: Ind-Ra Affirms 'B+' Long-Term Issuer Rating ---------------------------------------------------- India Ratings and Research (Ind-Ra) has revised M/s GMA Pinnacle Automotives Private Limited's (GMA) Outlook to Stable from Negative while affirming the Long-Term Issuer Rating at 'IND B+'. The instrument-wise rating actions are: -- INR100 mil. (reduced from INR150 mil.) Fund-based limits affirmed; Outlook revised to Stable from Negative with IND B+/Stable/IND A4 rating. The Outlook revision to Stable from Negative reflects Ind-Ra's expectation of a strong growth in the auto sector in FY23, following the economic recovery after the COVID-19 pandemic, which would lead to an increase in GMA's revenue and sales volumes. The affirmation reflects GMA's continued small scale of operations, and modest EBITDA margins and credit metrics in FY22. Key Rating Drivers According to FY22 provisional financials, the revenue grew to INR682.69 million (FY21: INR477 million), due to increased demand for automobiles following the economic recovery after the COVID-19-led disruptions. Ind-Ra expects the revenue to further improve marginally over the medium term backed by the launch of a new variant of Jeep (Grand Cherokee) and after sales services. The ratings continue to factor in GMA's modest EBITDAR margins of 3.36% in FY22 (FY21: 5.01%) with a return on capital employed of 0.2% (2.4%). The decline in margins was due to reduced revenue contribution from higher margin generating segments such as sale of spare parts and higher discounts offered by the company. In FY23, Ind-Ra expects the EBITDA margins to remain at a similar level due to the dealership nature of the business. The interest coverage (operating EBITDAR/gross interest expense + rent) deteriorated to 1.09x in FY22 (FY21: 1.28x) owing to a decline in the absolute EBITDAR to INR22.97 million (INR23.91 million). However, the net leverage (adjusted net debt/operating EBITDAR) improved to 9.66x in FY22 (FY21: 9.81x) owing to a reduction in the debt to INR228.94 million (INR238.63 million). Ind-Ra expects the credit metrics to improve marginally in FY23 on account of a likely decline in the total debt and interest expense in FY23. Liquidity Indicator - Stretched: The average maximum utilization of the fund-based limits for the 12 months ended July 2022 was 90.64%. GMA does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. The cash flow from operations turned positive to INR23.13 million in FY22 (FY21: negative INR30.67 million), mainly due to an increase in booking advances from customers. Consequently, the free cash flow improved to positive INR26.53 million in FY22 (FY21: negative INR26.02 million) The working capital cycle shortened to 25 days in FY22 (FY21: 40 days), due to the receipt of customer advances. GMA had cash and cash equivalents of INR6.96 million at FYE22 (FYE21: INR4.03 million). The ratings, however, remain supported by the promoter's experience of almost a decade in the automobile industry. Rating Sensitivities Positive: A significant improvement in the revenue and profitability margins, along with an improvement in the liquidity position and credit metrics, all on a sustained basis, would be positive for the ratings. Negative: A significant decline in the revenue and profitability margins, leading to deterioration in the liquidity profile and credit metrics, all on a sustained basis, would be negative for the ratings. Company Profile Incorporated in 2016, GMA is an authorized dealer of Jeep cars. It is also engaged in the selling of imported and domestically-manufactured cars, spare parts accessories and servicing. MAA PEETAMBRA: CARE Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Maa Peetambra Sugar and Power Limited (MPSPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 13.67 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 24, 2021, placed the rating(s) of MPSPL under the 'issuer non-cooperating' category as MPSPL 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. MPSPL 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). Dabra (Madhya Pradesh) based Maa Peetambra Sugar and Power Limited (MPSPL, CIN: U15420MP2013PLC030055) was incorporated in 2013 by Mr. Rajendra Kandele is mainly engaged in the manufacturing of White Sugar. MACK STAR: NCLAT Sets Aside Insolvency Proceedings vs Firm ---------------------------------------------------------- Business Standard reports that appellate tribunal NCLAT has set aside insolvency proceedings against Mack Star Marketing initiated by the NCLT Mumbai after observing that the term-loan provided by Yes Bank to it was an "eye-wash" and "collusive in nature". A two-member bench held such collusive transactions do not fall within the ambit of the definition of Financial Debt as defined under Section 5(8) of the Insolvency & Bankruptcy Code and therefore Suraksha Asset Reconstruction cannot be termed as a Financial Creditor, Business Standard says. According to Business Standard, the NCLAT observed that out of INR147.6 crore -- sanctioned by Yes Bank in Mack Star's name for the purpose of renovating 'Kaledonia' a two-year-old building constructed at a cost of INR100 crore -- more than 99% of the amount was routed back to Yes Bank either on the same day or within a very short period. "The chequered history of the loan transactions and collusive arrangements indulged by Yes Bank demonstrates that the Term Loans disbursed in the name of Mack Star is an eye-wash' and Yes Bank has disbursed these loans with an ulterior motive," said the National Company Law Appellate Tribunal (NCLAT). It also set aside the orders of the Mumbai bench of the National Company Law Tribunal (NCLT), which had on Oct. 27, 2021, directed to initiate insolvency proceedings against Mack Star Marketing over a petition from Suraksha Asset Reconstruction, the assignee of the loans given by Yes Bank, Business Standard relates. "We allow this Appeal and set aside the Impugned Order passed by the Learned Adjudicating Authority (NCLT, Mumbai Bench, Court III), on 20.09.2021," said the NCLAT. In effect, orders passed by the NCLT appointing an interim resolution professional, declaring moratorium, freezing of account and all other orders passed pursuant to the impugned order, are set aside, the appellate tribunal, as cited by Business Standard, said. "The Adjudicating Authority will now close the proceedings. The Corporate Debtor' is released from all the rigours of law and is allowed to function independently through its Board of Directors with immediate effect," it added. The report notes that the appellate tribunal order came on a petition filed by Ocean Deity Investment Holdings, which holds a majority of 82.17% shares in Mack Star, challenging the NCLT order. According to the report, the NCLT had admitted Suraksha's Section 7 application under the Insolvency and Bankruptcy Code, 2016, claiming defaults in payment of four Term Loans, out of the six Term Loan transactions executed between Mack Star and Yes Bank totalling INR159.67 crore. However, challenging this before the NCLAT, Ocean Deity Investment Holdings submitted that the CBI had lodged an FIR on Sept. 23, 2020, against Yes Bank officials, Housing Development Infrastructure Ltd (HDIL), its Promoters, Wadhawans and other individuals, who were collectively accused for cheating Mack Star and the appellant by way of these collusive transactions, the report relays. After several months of the Enforcement Directorate having arrested Rana Kapoor, the Promoter of Yes Bank for conspiring with HDIL Promoter to cheat Mack Star, the NCLT passed the order on Sept. 20, 2021, the report recalls. "Both CBI and ED have independently concluded that there was a criminal conspiracy, pursuant to which act, there was three steps circular flow of funds from Yes Bank, whereby INR147 crores have fraudulently been disbursed in the name of Mack Star; the amount was disbursed to Yes Bank accounts of HDIL Group Companies," it said. These loan amounts of INR146 crore from Yes Bank accounts of HDIL Group Companies were used for discharging the earlier loans availed by the financially stressed HDIL Group Companies from Yes Bank. "These findings were completely ignored by the Adjudicating Authority while passing the Impugned Order," the holding company submitted before the NCLAT. MAHANAGAR TELEPHONE: CARE Cuts Rating on INR9,810.34cr Loan to D ---------------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Mahanagar Telephone Nigam Limited (MTNL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term bank 9,810.34 CARE D Revised from CARE AA+ Facilities (CE)@; Stable Long-term/Short- 4,754.66 CARE D Revised from CARE AA+ term bank (CE)@; Stable/CARE A1+ (CE)@; facilities@ Outlook: Stable Short-term bank 7,435.00 CARE D Revised from CARE A1+ facilities@ (CE)@ Bonds^ 3,768.97 CARE AAA (CE); Stable Reaffirmed Bonds^ 6,500.00 CARE AAA (CE); Stable Reaffirmed Non-convertible 2,980.00 CARE AAA (CE); Stable debentures^ Reaffirmed Non-convertible 765.00 CARE AAA (CE); Stable debentures^ Reaffirmed @ Backed by credit enhancement in the form of 'Letter of Comfort' (LoC) from the Department of Telecommunications (DoT) under the Ministry of Communications (MoC), Government of India (GoI). ^ Backed by credit enhancement in the form of unconditional and irrevocable guarantee from the GoI, through the DoT, Ministry of Communications (MoC). Detailed rationale and key rating drivers for the credit enhanced debt The revision in the ratings assigned to the bank facilities of Mahanagar Telephone Nigam Limited (MTNL) factors in the ongoing delays in debt servicing. The company, vide notification dated August 31, 2022, informed the stock exchanges regarding the default on payment of interest of INR35.15 crore due to Union Bank of India on July 31, 2022. The ratings were principally based on credit enhancement in the form of Letter of Comfort (LoC) issued by the DoT, Government of India (GoI). The LoC, valid till October 26, 2022, has been renewed periodically every three years since 2010. From time to time, the GoI has continuously extended support to MTNL by way of sovereign guarantee for the latter's bond issuances; LoC for raising bridge finance as well as through budgetary assistance to offset the continuous losses at the company level. CARE Ratings also expects MTNL to receive aid under the second revival plan for Bharat Sanchar Nigam Limited (BSNL) and MTNL announced by the GoI in July 2022, in order to replace their existing outstanding bank loans with sovereign guaranteed bonds. As informed by the company, the Ministry of Finance (MoF), GoI, has issued the sovereign guarantee to the extent of INR10,910 crore in favour of MTNL on September 02, 2022. CARE Ratings understands that MTNL has initiated the process of issuance of the aforementioned sovereign guaranteed bonds, which is estimated to fructify soon. Meanwhile, the company has unavailed limits under the rated facilities backed by LoC from the DoT, GoI amounting to INR4,750 crore. As communicated by the company management and confirmed by the banks to CARE Ratings, MTNL had already approached the banks for availing bridge finance under these limits. However, timing mismatches in concluding the process of raising interim bank finance till issuance of sovereign bonds, led to delay in servicing of some rated bank facilities backed by LoC from the DoT, GoI. CARE Ratings notes that MTNL has throughout been regular in debt servicing obligations and has been furnishing necessary monthly "no default" declarations to CARE, as per extant Securities and Exchange Board of India (SEBI) guidelines. The reaffirmation of the ratings assigned to the instruments (Bonds and non-convertible debenture [NCD] issues) of MTNL is based on credit enhancement in the form of unconditional and irrevocable guarantee from the GoI, through the DoT, MoC, supported by a trustee-administered structured payment mechanism ensuring timely debt servicing. As confirmed by the Debenture Trustee to CARE Ratings, the aforementioned structured payment mechanism has been consistently adhered to and is working as devised. The ratings continue to factor in majority holding of the GoI (56.89% holding as on June 30, 2022), demonstrated support in the past and expectation of continued support in the future from the GoI for timely servicing of obligations towards instruments (Bonds/NCDs raised by MTNL). CARE Ratings also takes cognisance of the recently approved revival package for BSNL by the Union Cabinet, at its meeting held on July 27, 2022, and Office Memorandum dated August 02, 2022, which highlights the support proposed to be extended to MTNL by GoI. Detailed rationale and key rating drivers of MTNL The revision in the unsupported ratings assigned to MTNL factors in the ongoing delays in debt servicing as mentioned earlier. Rating sensitivities For credit enhanced debt- Bonds/ NCDs Negative factors – Factors that could lead to negative rating action/downgrade: * Non-adherence to the trustee administered structured payment mechanism by any of the parties in the transaction. * Any change in the focus/support from the GoI to MTNL. For bank loans and unsupported ratings Positive factors – Factors that could lead to positive rating action/upgrade: * Track record of timely debt servicing for a continuous period of three months. * Sustained improvement in the financial and business performance of the company. Negative factors – Factors that could lead to negative rating action/downgrade: * Not applicable Detailed description of the key rating drivers Key rating strengths * Majority ownership of the GoI: MTNL is one of the only two state-owned telecom service providers in India along with BSNL (bond rated 'CARE AAA (CE); Stable'). The GoI holds majority stake in MTNL (56.89% as on June 30, 2022) and balance by public. The company enjoys 'Navratna Status', a status that gives greater autonomy to Central Public Sector Enterprises (CPSEs) in their investment and capital expenditure decisions. Such a status also aims at facilitating expansion of its operations both in the domestic and global markets. * Credit enhancement for the Bonds/NCDs in the form of unconditional and irrecoverable guarantee from the GoI: The Bond/NCD issues are backed by unconditional and irrevocable guarantee for the servicing of the entire issue (both principal amount as well as the accrued interest) from the GoI through the DoT, MoC. * Trustee-administered structured payment mechanism, designed to ensure full and timely payments: A trusteeadministered structured payment mechanism is in place to ensure the timely payment of interest and principal obligations of the Bond/NCD issues through a tripartite agreement between MTNL, Trustee (M/s SBICAP Trustee Company Limited) and the GoI, through the DoT, MoC. The trustee will facilitate timely servicing of MTNL's obligations by DoT even if MTNL does not have sufficient funds to do so. * Support from the GoI: Keeping in mind the legacy as well as strategic importance of MTNL, the GoI, in October 2019, announced the revival plan for MTNL and BSNL and had meanwhile, continued to support the company's funding requirements through the issuance of LoC. Certain identified land assets of MTNL are also expected to be monetised in order to maximise the returns and support in reducing the debt levels. Furthermore, to make the public sector units (PSUs) financially viable, the Union Cabinet approved the second revival plan for BSNL and MTNL (the telcos) amounting to INR1.64 lakh crore on July 27, 2022. The revival plan is aimed at upgrading services, rolling out 4G services, augmenting the telecom network, and de-stressing the balance sheets. The following are the schemes approved by the Union Cabinet for the telcos: * Allotment of spectrum administratively: The telcos will be allotted a spectrum administratively in the 900/1,800 MHz band (renewal of spectrum for 20 years) amounting to INR44,993 crore through equity infusion. However, there have been delays in the rollout of 4G services due to 4G import restrictions (as per the GoI's 'Atmanirbhar' scheme). * Financial support for capex: To meet the projected capex for the next four years of deploying Atmanirbhar 4G technology stack, the GoI will fund a capex of INR22,471 crore. The same will be infused through equity into BSNL and includes the projected capex requirements of INR1,851 crore for MTNL as well. * Viability gap funding (VGF): A consideration of INR13,789 crore for commercially unviable rural wire-line operations done during FY14 to FY20 will be provided by the GoI in three tranches, the first of which is expected by September 2022. Proceeds from the same will be utilised for the prepayment of high-cost debt. * Debt structuring: Sovereign guarantee is to be provided for raising long-term bonds amounting to INR40,399 crore, which will be utilised for restructuring high-cost debt. * Financial support for AGR dues: AGR dues amounting to INR33,404 crore to be settled by conversion into equity. * Merger of Bharat Broadband Network Limited (BBNL) and BSNL: The two companies will be merged to facilitate wider utilisation of the infrastructure. * Re-issue of preference shares: BSNL will re-issue preference shares of INR7,500 crore to the GoI. Key rating weaknesses * On-going delays in debt servicing: There are ongoing delays by MTNL in servicing its debt obligations for the bank facilities, the ratings for which were based on credit enhancement in the form of LoC, issued by the DoT. The LoC, valid till October 26, 2022, has been renewed periodically every three years since 2010. MTNL has incurred continued operational losses in the past, which were regularly funded through issuance of sovereign backed debt instruments/bank loans. From time to time, the GoI has extended support to MTNL by way of sovereign guarantee for the latter's bond issuances; LoC for raising bridge finance as well as budgetary assistance in the form of revival package to offset the continuous losses at the company level. As informed by the company, the Ministry of Finance (MoF), GoI, has issued the sovereign guarantee to the extent of INR10,910 crore in favour of MTNL on September 02, 2022. CARE Ratings understands that MTNL has initiated the process of issuance of sovereign guaranteed bonds, which is expected to fructify soon. Meanwhile, as communicated by the company management and confirmed by banks to CARE Ratings, MTNL had already approached them for availing bridge finance against unavailed rated limits aggregating INR4,750 crore. However, timing mismatches in concluding the process of raising interim bank finance, till issuance of sovereign bonds, led to delay in servicing of some rated bank facilities backed by LoC, issued by the DoT, GoI. Higher than industry average human resource cost: MTNL has a large employee base and the staff costs absorb a very high percentage of the revenue of the company. MTNL's staff cost was about INR555 crore in FY22 (PY: INR413 crore), which is around 52% of its revenue from operations in FY22 (around 32% in FY21). Although there has been a significant decrease in the employee costs post the successful implementation of the VRS, the same continues to remain more than 5x the industry average. Overstaffing is a major risk faced by the company and this cost in case of other operators is around 5-7% of the total operating income (TOI). The same is on account of the legacy issues, which are likely to remain going forward. * Highly competitive nature of the industry, albeit favourable industry outlook: The Indian telecom sector is the second largest in the world, in terms of the number of subscribers. The sector has witnessed exponential growth over the past few years due to various factors, including affordable tariffs, wider service availability, the rollout of new technology, etc. The average data consumption per subscriber per month has increased rapidly during the past few years and the same stood at 15.80 GB for Q4FY22, backed by the consumers' digital shift post the COVID-19 pandemic. During September 2021, the GoI announced major reforms for the telecom sector to address the liquidity issue of telecom service providers (TSPs), encourage investment, and promote healthy competition in the industry. Furthermore, the industry undertook tariff hikes of up to 25% post the telecom reforms to improve cash flows and provide additional liquidity for capex plans. Additionally, the 5G spectrum auction concluded on August 1, 2022, fetching over INR1.50 trillion, making it a success. As per CARE Ratings' reports, considering the large quantum of investments required in the next two to three years for the rollout of 5G, the TSPs are likely to witness an increase in leverage levels, with the aggregate debt levels for the major TSPs to touch an estimated INR6.20 trillion by March 2023. Going ahead, prospects of growth for the Indian telecom industry are healthy, with the telecom operators upgrading and expanding their network to meet the demand for rising data growth with the evolution of new revenue streams. Liquidity: Poor There have been continuous operational losses in the past for MTNL. However, its liquidity profile is being supported by the GoI through issuance of sovereign backed debt securities at MTNL level. GoI, through the DoT, has provided LoC for the company's bank borrowings stating that the GoI will ensure timely payment of interest and repayments to banks/FIs due from MTNL. However, timing mismatches in concluding the process of raising interim bank finance, till issuance of sovereign bonds, led to delay in servicing of some rated bank facilities backed by LoC issued by the DoT, GoI. Going forward, timely fructification of sovereign debt issuance plans is a precursor for improvement of MTNL's liquidity profile. Analytical approach: * Sovereign Guaranteed Bonds/NCDs: Credit enhancement in the form of unconditional and irrevocable guarantee from the GoI, through the DoT, MoC, operating through a trustee-administered structured payment mechanism for the timely transfer of the required funds for repayment of principal and interest to a designated account. The rating also factors in the GoI's majority stake (56.89% of the equity) in MTNL. * Bank facilities: Standalone, and factoring majority ownership of the GoI in MTNL. The approach was earlier based on credit enhancement in the form of LoC issued by the DoT, GoI. Pursuant to delay in debt servicing to banks, the approach has been revised to standalone. MTNL was incorporated by the GoI in 1986 with the aim of upgrading the quality of telecom services, expanding the telecom network and introducing new services for India's key metros, Delhi and Mumbai. MTNL was given the Navratna status in 1997 and was listed on New York Stock Exchange in 2001. MTNL is providing a host of telecom services that include fixed telephone service, GSM, Internet, Broadband, ISDN and Leased Line services. MTNL has been the first to launch some of the latest telecom technologies in the country like ADSL2+ & VDSL2 in broadband, IPTV on MPEG4 technology, VOIP and 3G Mobile service. MTNL is also providing telecommunication services beyond Indian boundaries through its joint ventures (JV) and subsidiaries. MTNL is present in Nepal through its JV, United Telecom Limited (UTL), and in Mauritius through its 100% subsidiary, Mahanagar Telephone Mauritius Limited (MTML). However, after obtaining unified license for all 22 circles in India, the business operations of MTNL is being handled by BSNL as its outsourced agency, since September 01, 2021. BSNL's major focus will be to expand the 4G network with new equipment and introduce competitive tariff and marketing plans to attract customers. As on June 30, 2022, MTNL had a total subscriber base of 5.87 million consisting of 3.24 million wireless subscribers (0.28% market share) and 2.63 million wireline subscribers (10.29% market share). MANAPPURAM FINANCE: Fitch Affirms BB- LongTerm IDRs, Outlook Stable ------------------------------------------------------------------- Fitch Ratings has affirmed India-based Manappuram Finance Limited's (MFIN) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'BB-'. The Outlook is Stable. KEY RATING DRIVERS MFIN's ratings are driven by its standalone credit profile, and stem from MFIN's moderate franchise in gold-backed financing among the semi-urban and rural markets in India, stable asset quality supported by gold collateral, generally stable funding and liquidity profile, and satisfactory leverage. This is counterbalanced by a growing risk appetite as evidenced by its evolving business model, and the company's record of compliance lapses, particularly in earlier years. Gold jewellery-backed loans formed 67% of MFIN's total loans at end-June 2022 and will continue to dominate in the portfolio in the medium term. However, its share in the consolidated portfolio is likely to fall as management targets higher growth in riskier non-gold loan segments - microfinance, low-ticket housing, and used commercial vehicles - to boost franchise growth. We believe higher growth in less-familiar businesses could increase asset-quality volatility. We also view operational risk as high for MFIN due to its decentralised branch-led disbursement approach in gold-backed financing. MFIN's credit profile is also weighed down by high key-person risk. It recently implemented a succession plan related to the founding shareholder, who is also the managing director. However, in the absence of a clear transition of decision-making or devolvement of duties, the risk remains elevated. Fitch said "We also view regulatory risk for the business as high due to its history of compliance lapses, some of which are related to customer practices. This underpins our ESG Relevance Scores of '4' for Customer Welfare and Governance Structure. Steps taken to improve governance and operational practices under board oversight should reduce such risks, but this will happen only gradually." MFIN's highly liquid gold collateral underpins its stable asset quality. Credit impairment costs are vulnerable to a steep decline in gold prices, which could lead to a decline in the realisable value of gold jewellery. However, a regulatory loan/value ceiling of 75% and standardised jewellery valuation based on its pure gold content mitigate gold price declines. MFIN's credit costs rose slightly during the pandemic to 1.5% in the financial year ended March 2022 (FY22), from 1.1% in FY20, due to deterioration in non-gold segments, which we expect to moderate as economic conditions improve. However, a larger share of non-gold loans, which typically have higher credit costs, may increase asset-quality volatility. MFIN's wide net interest margin (NIM) of 13% in FY22 is reflected in its typically healthy profitability (pre-tax profit of 5.5% of average assets). However, NIM narrowed from around 15% previously due to promotional low-rate gold loans amid intensifying competition during the pandemic. Such products have since been discontinued, and we expect downward pressure on yield to abate. "Still, we do not expect NIM to return to previous highs as competition is likely to remain high, although gold loans should remain among products with the widest margins in the non-bank lending sector," Fitch said. Adequate internal capital generation results in moderate debt/tangible equity (3.0x at end-March 2022). MFIN is wholesale-funded like most other Indian non-bank financial institutions (NBFIs). Banks made up 62% of MFIN's total borrowings at end-June 2022 and are likely to remain its preferred source in the near term due to rising interest rates for market instruments. MFIN has cut the use of commercial paper to 1% of borrowings (from 5% at end-March 2021). Its asset-liability profile is reasonably well-matched, but growth in long-tenor products will change the profile in the medium to long term. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: IDRS The rating may be downgraded in the event of aggressive growth in non-gold lending segments without a corresponding strengthening in risk controls and balance-sheet buffers, higher leverage sustained above 4.5x, or higher-than-expected operational risk losses that materially weakened profitability. Factors that could, individually or collectively, lead to positive rating action/upgrade: IDRS Fitch believes that the ratings have limited upside potential in the near term. In the longer term, evidence of sustained robust regulatory compliance, a strengthened franchise in gold and non-gold lending segments along with a record of maintaining healthy asset quality and profitability metrics may be positive for the ratings. DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS The ratings on MFIN's medium-term note (MTN) programme and foreign-currency senior secured debt are at the same level as its Long-Term Foreign-Currency IDR. Indian NBFIs' borrowings are typically secured, and Fitch believes that non-payment of their senior secured debt would best reflect uncured failure of the entity. NBFIs can issue unsecured debt in the overseas market, but such debt is likely to constitute a small portion of their funding and thus cannot be viewed as their primary financial obligation. DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: Negative action on MFIN's Long-Term Foreign-Currency IDR would drive similar action on its MTN programme and senior secured debt ratings. Factors that could, individually or collectively, lead to positive rating action/upgrade: Fitch will take positive action on the ratings on the MTN programme and senior secured debt in the event of similar positive action on MFIN's Long-Term Foreign-Currency IDR. REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING The principal sources of information used in the analysis are described in the Applicable Criteria. ESG CONSIDERATIONS MFIN has an ESG Relevance Score of '4' for Customer Welfare - Fair Messaging, Privacy and Data Security, due to a history of lapses in customer-related business practices that did not fully comply with regulatory norms. This implies gaps in the governance structure that also explains the ESG Relevance Score of '4' for Governance Structure. The scores reflect our assessment that governance and customer-related practices appear weaker than rated peers', raising regulatory and reputational risk for MFIN. This has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. 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. METRO AGRO: CARE Keeps D Debt Rating in Not Cooperating ------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Metro Agro Mills (MAM) 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 MAM under the 'issuer non-cooperating' category as MAM 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. MAM 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). Metro Agro Mills (MAM) was established in April 2002 as a partnership firm. Mr. A.M. Koya, Mr. A. M. Sijumon, Mrs. Mini Koya, Mrs. Laila Makkar, Mr. A.M. Seemon are partners of the firm. The firm belongs to the 'Beepath' Group (based in Kerala) and is engaged in the business of rice milling (processing of paddy into rice) and also into trading of rice (which constitute around 25% of the rice sales). The key raw material, paddy is procured from farmers in Kerala, Tamil Nadu and Karnataka. MGI INFRA: CARE Withdraws D Rating on Long/Short Term Debts ----------------------------------------------------------- CARE Ratings Ltd. has reaffirmed and withdrawn the outstanding rating of CARE D; assigned to the bank facilities of MGI Infra Private Limited (MGIIPL), with immediate effect. The rating takes into account the delay in debt servicing due to tight liquidity position of the company. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank - Reaffirmed at CARE D and Facilities Withdrawn Short Term Bank - Reaffirmed at CARE D and Facilities Withdrawn The above action has been taken at the request of MGI Infra Private Limited and 'No Objection Certificate' received from the bank that have extended the facilities rated by CARE Ratings Ltd. Rating Sensitivities Positive Factors * Improvement in the liquidity position of the company as reflected from timely servicing of its debt obligations. Detailed description of the key rating drivers Key rating weaknesses * Delays in debt servicing: There has been delay in the servicing of its debt obligations due to the stressed liquidity position of the company. The company delayed in repayment of its debt servicing in month of March 2022 due to delay in timely realization of its receivables from government departments. Liquidity: Poor MGI Infra Private Limited has poor liquidity position as marked by low current ratio and quick ratio of 1.09x and 0.60x during FY21. New-Delhi based, MGI Infra Private Limited (MGIIPL), was incorporated in Oct 2011 by Mr. Hitesh Jaju & Mr. Arvind Rana. The company is engaged in the business of design and erection of pre-engineered steel buildings (PEB) such as residential & commercial buildings and Light Gauge Steel Frame (LGSF) Structure and Dry wall. The client profile comprises government as well as private sector entities. The orders executed for the government entities comprise those obtained through direct bidding as well as those sub-contracted by the primary MGI Infra Private Limited IRCM Dated: August 26, 2022 Mandate ID: 2015- 2016/50/32666 contractor. It obtains the orders directly from the private sector entities. Besides the company also outsources the orders that it receives as the primary contractor to other parties. MUTHOOT FINANCE: Fitch Affirms 'BB' LongTerm IDRs, Outlook Stable ----------------------------------------------------------------- Fitch Ratings has affirmed India-based Muthoot Finance Ltd's (MFL) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'BB'. The Outlook is Stable. KEY RATING DRIVERS The ratings reflect MFL's market leadership in gold-backed lending, experienced management, consistently low credit losses, moderate leverage and a liquidity profile supported by low-tenor loans. Asset quality is supported by MFL's high exposure in loans against gold collateral, at 89% of consolidated loans at end-June 2022. A regulatory loan/value ceiling of 75% and established valuation practices mitigate collateral price volatility, while standardised auction procedures smooth the loan recovery process in the event of default. Credit costs remain low, at 0.6% in FY22 and -0.1% (annualised) in 1QFY23. The net interest margin (NIM) had declined over the last two years (Fitch-calculated NIM in FY22: 12.0%; FY21: 12.9%; FY20: 13.8%) due to falling loan yields, as promotional low-rate loans were introduced amid intensifying competition during the pandemic. Such teaser-rate products have since ceased, and we expect yield pressure to ease from here. Still, the NIM is unlikely to return to previous highs amid still-high competition, although gold loans should remain among the widest-margin products within the non-bank lending sector. MFL's healthy NIM and low credit costs continued to support its profitability in FY22, with a pre-tax profit of 7.5% of average assets. MFL's strategy to increase non-gold backed lending - microfinance, low-cost housing and auto loans - should help diversify its portfolio, but could also entail a higher risk appetite. That said, gold loans are likely to remain its dominant lending segment in the medium term. MFL faces high operational risks in the branch-led gold-lending business arising from decentralised collateral and cash handling as well as lending against stolen or spurious gold. However, various controls, including regular inspections and the company's decentralised branch operations, mitigate this risk. Internal capital generation and moderate growth should help contain leverage in the medium term (June 2022: 2.6x). MFL's funding access remains diversified, having held up well even during the pandemic due to resilient collections from gold loans. Liquidity is also supported by short asset tenors, with a positive short-term asset-liability maturity profile. We expect the funding and liquidity profile to remain broadly stable. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: The ratings may be downgraded if asset quality and gold collateral values weaken sharply and diminish MFL's profitability and capitalisation, or if aggressive expansion in new lending segments leads to a weaker risk profile assessment. Excessive operational risk losses, weakened liquidity coverage or funding access, and debt/tangible equity exceeding 4.5x would also pressure the ratings. Factors that could, individually or collectively, lead to positive rating action/upgrade: The ratings are at the higher end of rated local peers; an upgrade would be based on steady and successful expansion in MFL's franchise beyond gold-loans, along with a materially improved operating environment. This is provided that MFL maintains profitability amid rising competition in gold loans, satisfactory asset quality and balance-sheet metrics commensurate with a stronger rating as it expands. DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS MTN PROGRAMME AND SENIOR SECURED DEBT The ratings on MFL's medium-term note (MTN) programme and foreign-currency senior debt are at the same level as its Long-Term Foreign-Currency IDR. The borrowings of Indian non-bank financial institutions are typically secured and we believe non-payment of senior secured debt would best reflect the uncured failure of the entity. Non-bank financial institutions can issue unsecured debt in the overseas market, but such debt is likely to constitute a small portion of their funding and thus cannot be viewed as their primary financial obligation. DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES MTN PROGRAMME AND SENIOR SECURED DEBT Factors that could, individually or collectively, lead to positive rating action/upgrade: Any positive action on the Long-Term Foreign-Currency IDR will result in similar action on the MTN programme and senior secured debt ratings. Factors that could, individually or collectively, lead to negative rating action/downgrade: Negative action on the Long-Term Foreign-Currency IDR would drive similar action on the MTN programme and senior secured debt ratings. REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING The principal sources of information used in the analysis are described in the Applicable Criteria. ESG CONSIDERATIONS MFL has an ESG Relevance Score of '3' for Customer Welfare, compared with the standard score of '2' for the finance company sector. This reflects its retail-focused operations, which expose it to risks around fair lending practices, pricing transparency, repossession, foreclosure and collection practices, whereby aggressive practices in these areas may subject the company to legal or regulatory and reputational risk that may damage its credit profile. The score of '3' for this factor reflects our view that such risks are adequately managed and have a low impact on the company's credit profile. 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. NAGARJUNA FERTILIZERS: Ind-Ra Moves 'D' Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Nagarjuna Fertilizers and Chemicals Limited's Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR8.03 mil. Fund-based limit (Long-term) migrated to non- cooperating category with IND D (ISSUER NOT COOPERATING) rating; -- INR11.80 mil. Non-fund-based limit (Short-term) migrated to non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR4.73 mil. Long-term loans issued on FY21-FY24 migrated to non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on August 5, 2021. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. Company Profile Established in 1987, Nagarjuna Fertilizers and Chemicals manufactures and supplies plant nutrients. The company has two urea plants in Andhra Pradesh, with a total capacity of 1.19 million metric ton per annum. It also trades in other fertilizers such as di-ammonium phosphate, mono-ammonium phosphate, muriate of potash, water soluble fertilizers, micronutrients, bio-products, customized fertilizers, and seeds. NEEL MOTORS: Liquidation Process Case Summary --------------------------------------------- Debtor: Neel Motors LLP Sr. No. 80/2/5, 80/2/4, 80/2/3 Jaymala Business Centre E Wing, Mouje Manjari, BK Pune Maharashtra 412307 Liquidation Commencement Date: May 6, 2022 Court: National Company Law Tribunal, Mumbai Bench Date of closure of insolvency resolution process: April 1, 2022 Insolvency professional: Mukesh Kumar Gupta Interim Resolution Professional: Mukesh Kumar Gupta 171 Sita Ram Apartment 102 Ip Ext New Delhi 110092 E-mail: guptam11@gmail.com - and - D-54, First Floor Defence Colony New Delhi 110024 E-mail: liquidation.neelmotors@gmail.com Last date for submission of claims: June 6, 2022 NEMCARE HOSPITAL: CARE Keeps D Debt Rating in Not Cooperating ------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Nemcare Hospital Tezpur Private Limited (NHTPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 15.00 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 30, 2021, placed the rating(s) of NHTPL under the 'issuer non-cooperating' category as NHTPL 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. NHTPL 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). NHTPL was incorporated on May 23, 2016 by Guwahati based NEMCARE Group. North East Medical Care & Research Centre Pvt Ltd (NEMCRCPL) holding 88.64% stake in NHTPL is the flagship company of the group which is already operating a 100 bed multi-speciality hospital in Guwahati, Assam since last 2 decade. This apart, Nemcare Hospital Pvt Ltd (NHPL, IND D) another company of the group is running a 200 bed multi-speciality hospital in Guwahati. NHTPL is setting up a 60 bed multi-speciality hospital in Tezpur, Assam at an estimated cost of INR25.98 crore (being funded at a debt equity ratio of 1.7:1). The commencement of the same has been postponed from April'18 and the project is expected to be completed by April 2020. Dr. Mihir Kumar Baruah, Director [MBBS, PGDHHM] along with Dr. Hiteshwar Baruah (MBBS, MAIMS, FAIMS) serving as the chairman and Managing Director of NHTPL is looking after day to day operations of the company. The promoters are having an experience of more than two decades in the healthcare industry. NEWCON ENGINEERS: Insolvency Resolution Process Case Summary ------------------------------------------------------------ Debtor: Newcon Engineers Private Limited F-99, Ground Floor Okhla Industrial Estate Phase-III, New Delhi South Delhi 110020 India Insolvency Commencement Date: September 7, 2022 Court: National Company Law Tribunal, Delhi Bench II Estimated date of closure of insolvency resolution process: March 4, 2023 (180 days from commencement) Insolvency professional: Sanyam Goel Interim Resolution Professional: Sanyam Goel Unit No. 110, First Floor JMD Pacific Square Sector 15, Part II Gurugram 122001 Haryana, India E-mail: goelsanyam@gmail.com cirp.newconengineers@gmail.com Last date for submission of claims: September 21, 2022 NSP ASSOCIATES: Insolvency Resolution Process Case Summary ---------------------------------------------------------- Debtor: N S P Associates (India) Private Limited Registered office: L-356, Mahipalpur Extension Delhi 110037 India Other address: Khasra No. 360-368, NH-48 Village Mohaldia Tehsil Neemrana, Alwar 301705 Rajasthan, India Insolvency Commencement Date: September 5, 2022 Court: National Company Law Tribunal, New Delhi Bench VI Estimated date of closure of insolvency resolution process: February 27, 2023 (180 days from commencement) Insolvency professional: Sunder Khatri Interim Resolution Professional: Sunder Khatri GF-124 & 113 World Trade Centre Babar Road, Lalit Hotel New Delhi 110001 National Capital Territory of Delhi India E-mail: sunder_khatri@yahoo.com nspassociate.ip@gmail.com Last date for submission of claims: September 19, 2022 NURNEHER AGRO: CARE Keeps C Debt Rating in Not Cooperating ---------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Nurneher Agro Products Private Limited (NAPPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.83 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category Short Term Bank 0.19 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 29, 2021, placed the rating(s) of NAPPL under the 'issuer non-cooperating' category as NAPPL 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. NAPPL continues to be non-cooperative 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). Incorporated in June 2016, Nurneher Agro Products Private Limited (NAPPL) was promoted by Mr. Liakat Ali Mallick and Mrs. Nurneher Begam Mallick for setting up a cold storage facility for potatoes in Burdwan, West Bengal. The company has setup its cold storage facility having a capacity 14.0 lakh quintal with a cost of INR10.02 crore funded at a debt equity of 1.73x. The company has started loading its cold storage and commenced its operations from March 1, 2018. PARASHNATH RE-ROOLLING: CARE Keeps D Ratings in Not Cooperating --------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Shree Parashnath Re-Roolling Mills Limited (SPRML) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 166.95 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 53.92 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 18, 2021, placed the rating(s) of SPRML under the 'issuer non-cooperating' category as SPRML 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. SPRML continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 4, 2022, May 14, 2022, May 24, 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). SPRML, incorporated in 2002, was promoted by two brothers, Mr. Anil Kumar Jain and Mr. Vipin Kumar Jain, of Durgapur. The company is presently engaged in manufacturing of Billets, Wire Rods and Structural products like Angles, Channels, Joists, H Beam, MS Flat, MS Round and MS Scrap with manufacturing facility located at Durgapur in West Bengal. The products are sold under "PARAS" brand. In July 2014, SPRML was referred to CDR. In November 2014, CDR cell approved the restructuring package of the company with effective date of July 1, 2014. PATNA BAKHTIYARPUR: Ind-Ra Keeps 'D' Rating in Non-Cooperating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Patna Bakhtiyarpur Tollway Limited's bank loan rating in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating action is: -- INR7,145.89 bil. Bank loans (Long-term) maintained in non- cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on June 8, 2018. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. Company Profile Patna Bakhtiyarpur Tollway is a special-purpose vehicle incorporated to implement a 50.65km-lane expansion (four-laning) between Anisabad in Patna and Bakhtiyarpur on the National Highway-30 in Bihar under an 18-year concession from the National Highways Authority of India National Highway Authority of India ('IND AAA'/Stable). PRAMUKH EXIM: ICRA Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------- ICRA has retained the Long-Term and Short-Term ratings of Pramukh Exim Pvt. Ltd. in the 'Issuer Not Cooperating' category. The ratings are denoted as [ICRA]D/[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 5.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category Short-term 10.00 [ICRA]D; ISSUER NOT COOPERATING; Non-fund based Continues to remain under the 'Issuer Not Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Incorporated in 2009, Pramukh Exim Private Limited (PEPL) exports salt in various countries such as South Korea, Bangladesh, China, USA etc. Pramukh International was established as a proprietorship concern of Mr. Pushpendra Thakker in 2004. It was subsequently converted a closely held private limited company in the year 2009. Mr. Shambhu Humbal and Mr. Puspendra Thakkar are the key promoters of the company and are engaged in the day to day operation of the business. RAGHUVANSHI FIBERS: Liquidation Process Case Summary ---------------------------------------------------- Debtor: Shree Raghuvanshi Fibers Private Limited Registered office: C/o Gopal Enterprise New Sardar Marketing Yard Shop No A-174, 8B National Highway, Gondal Rajkot, Gujarat 360311 Principal office: Near Krishna Cotton & Highspin Cotton Rajkot Cotton, Rajkot-Gondal Highway Biliyala, Tal. Gondal Dist. Rajkot 360311 Liquidation Commencement Date: August 31, 2022 Court: National Company Law Tribunal, Ahmedabad Bench Date of closure of insolvency resolution process: August 30, 2022 Insolvency professional: Jaykumar Pesumal Arlani Interim Resolution Professional: Jaykumar Pesumal Arlani Arlani Nivas, 10 Gayakwadi, Junction Plot Rajkot 360001 E-mail: arlanijay@gmail.com - and - C/o Jogi Meghani & Associates 215-16, 2nd Floor Century Centre, Kanta Stree Vikas Gruh Road Rajkot 360002 E-mail: liquidation.raghuvanshi@gmail.com Last date for submission of claims: September 29, 2022 RAJENDRA TRUCKING: CARE Keeps C Debt Rating in Not Cooperating -------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Rajendra Trucking Private Limited (RTPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 12.50 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 1, 2021, placed the rating(s) of RTPL under the 'issuer non-cooperating' category as RTPL 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. RTPL 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). Varanasi, Uttar Pradesh based Rajendra Trucking Private Limited (RTPL) is a private limited company, incorporated on October 12, 2012 was promoted by Mr. Rajendra Goenka, Mr. Rahul Goenka and Mr. Tanay Goenka. RTPL operates as an authorized dealer of Bharat Benz (division of Daimler India Commercial Vehicles (DICV) in Varanasi, Uttar Pradesh. RAMAKRISHNA ELECTRONICS: CARE Keeps D Rating in Not Cooperating --------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Ramakrishna Electronics (Kurnool) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 30.00 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 August 4, 2021, placed the rating(s) of RE under the 'issuer non-cooperating' category as RE 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. RE continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 20, 2022, June 30, 2022, July 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). Ramakrishna Electronics (RE), is a partnership firm established in April, 2000by Mr. V. Raghavenrdra, Mr. V. Ravi Kumar, Mrs. V. Rajeshwari, Mrs. V. Neelima, Mr. V Ananthakrishna, Mr. G. Ramaiah, Mr. G. Seshamma and Mrs. V. Nagarekha. The firm is engaged in distribution and trading (retail and wholesale) of consumer electronic products and home appliances. It operates with a total 9 showrooms. The firm has its registered office and show room located at Municipal Shopping Complex, Park Road, Kurnool with other retail show rooms located at Anathapur, Nadhyala, Madhanapally, Thandapathi, Kadiri and Guntakal in Andhra Pradesh. The firm distributes consumer durables of some major brands which include Sony and LG electronics goods in and around two districts of Andhra Pradesh. RAMEE HOTELS: ICRA Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------- ICRA has retained the Long-term and Short-term ratings of Ramee Hotels Private Limited in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 48.50 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Term Loan 'Issuer Not Cooperating' Category Long-term– 10.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category Long-term/ 0.25 [ICRA]D/[ICRA]D; ISSUER NOT Short Term COOPERATING; Rating Continues to Unallocated remain under 'Issuer Not Cooperating' Category Short-term 2.50 [ICRA]D; ISSUER NOT COOPERATING; Non-fund based Continues to remain under the 'Issuer Not Cooperating' ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Incorporated in 1998 and promoted by the Shetty family, Ramee Hotels Private Limited is engaged in the hospitality business and operates two hotels in Mumbai and Pune. Its registered office is in Dadar, Mumbai. The company's promoter, Mr. Vardaraj M Shetty, is actively involved in the Group's business. The Ramee India Group, comprising two other companies and around six subsidiaries, is engaged in the hospitality, construction and real estate and security and protection business. Ramee acts as a holding company for its subsidiaries and holds stake in two other Group companies. The three companies operating in India - Ramee Hotels Pvt. Ltd. (RHPL), Ramani Hotels Limited (RHL) and Creative Hotels Pvt. Ltd. (CHPL)- share a common management and brand, 'Ramee Guestline Hotels', while deriving considerable synergy from intra-group operational and financial linkages. The Group also operates 34 hotels worldwide, with a total capacity of ~3,000 rooms, with focus on the West Asian market. In FY2017, the firm reported a net profit of INR0.24 crore on an operating income (OI) of INR28.48 crore, as compared to a net loss of INR3.06 crore on an OI of INR27.16 crore in the previous year. RATTAN POLYCHEM: CARE Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of Rattan Polychem Private Limited (RPPL) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 13.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Long Term/ 12.00 CARE D/CARE D; ISSUER NOT Short Term COOPERATING; Rating continues Bank Facilities 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 29, 2021, placed the rating(s) of RPPL under the 'issuer non-cooperating' category as RPPL 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. RPPL 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). Faridabad (Haryana) based, Rattan Polychem Private Ltd (RPPL) incorporated in December 3, 2009 is promoted by Mr. Yashvir Singh Dagar and Mrs. Darshana Dagar. The company is engaged in manufacturing of Expandable polystyrene (EPS) of various grades. The manufacturing facility of the company is located at Faridabad, Haryana. RBR GARMENTS: Ind-Ra Moves 'BB' Issuer Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated RBR Garments Private Limited's Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR250 mil. Fund-based working capital limits migrated to non- cooperating category with IND BB (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating; -- INR50 mil. Non-fund-based working capital limits migrated to non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on July 2, 2021. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. Company Profile Tirupur-based RBR Garments was established in 1987 as a partnership firm and was converted into a private company in 2005. The company manufactures knitted garments and exports them to the US and Europe. It has in-house facilities of knitting, dyeing, printing, embroidery and washing. REDDY AND REDDY: CARE Keeps C Debt Rating in Not Cooperating ------------------------------------------------------------ CARE Ratings said the ratings for the bank facilities of Reddy and Reddy Import and Exports (RRIE) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 10.00 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category Short Term Bank 4.00 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 August 05, 2021, placed the rating(s) of RRIE under the 'issuer non-cooperating' category as RRIE 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. RRIE continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 21, 2022, July 1, 2022, July 11, 2022. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Reddy and Reddy Import and Exports (RRIE), is a partnership firm, incorporated in 1997 and is promoted by Mr. Goluguri Rama Krishna Reddy, Mr. Venakata Reddy and Mr. Sri Rama Reddy. Mr. Goluguri Rama Krishna Reddy is the firm's managing partner. The firm primarily trades in prawn feed in and around West Godavari district, Andhra Pradesh. The firm also derives about 10- 12% of its revenue from manufacturing shirt buttons. RRIE belongs to Reddy and Reddy Group which has diverse interests including trading and manufacturing of prawns feed, authorized dealership of Maruthi Suzuki India Limited (MSIL) and Hero Motors. REETHU TOBACCO: CARE Keeps D Debt Rating in Not Cooperating ----------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Reethu Tobacco Traders (RTT) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 7.60 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 7, 2021, placed the rating(s) of RTT under the 'issuer non-cooperating' category as RTT 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. RTT continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 23, 2022, June 2, 2022, June 12, 2022. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). About the Firm Andhra Pradesh based, Reethu Tobacco Traders (RTT) was established in the year 2010 as a proprietorship concern by Mr. Gogineni Venkateswara Rao. Mr. Gogineni Venkateswara Rao is an authorized licensed holder from Government of Andhra Pradesh for processing and selling of Virginia tobacco. RTT is mainly engaged in processing and selling of Virginia tobacco. The processing unit for separation of tobacco leaves is located at Tangutur (Andhra Pradesh) which is 25 km away from Ongole (Andhra Pradesh) where tobacco is one of the major crops. The firm has reputed client base like Godfrey Phillips India Limited and Premier Tobacco Packers Private Limited who contributed 40% and 45% of total sales respectively in FY17. RELISHAH EXPORT: Ind-Ra Affirms 'BB' Long-Term Issuer Rating ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has affirmed Relishah Export's Long-Term Issuer Rating at 'IND BB'. The Outlook is Stable. The instrument-wise rating actions are: -- INR55.1 mil. Fund-based post-shipment demand loan/usance foreign bill purchased/foreign bill purchased affirmed with IND A4+ rating; -- INR69.6 mil. Fund-based packing credit/packing credit in foreign currency* affirmed with IND A4+ rating; and -- INR2 mil. Non-fund-based inland bank guarantees affirmed with IND A4+ rating. *Includes standby limit of INR19.6 million Key Rating Drivers The affirmation reflects Relishah's continued medium scale of operations, with its revenue increasing to INR3,982.8 million in FY22 (FY21: INR2,356.9 million), led by an increase in demand for commodities which increased the cotton and yarn prices. The firm booked revenue of INR523.8 million in 1QFY23 and it had orders in hand worth INR200 million as of July 2022 to be executed until September 2022. Due to the stress in the operating environment and the halt in cotton yarn production mills, owing to a low demand and high raw material prices, the management expects the company's turnover to be impacted in FY23. Ind-Ra expects the firm's revenue to decrease in FY23. Its FY22 financials are provisional in nature. The ratings also factor in the firm's healthy-though-volatile EBITDA margin. Relishah's margin significantly improved to 5.5% in FY22 (FY21: 2.6%), on account of an increase in the export incentive to INR70.4 million (INR43.4 million) and the addition of operating income from a premium of remission of duties and taxes on export products worth INR103.6 million. The return on capital employed stood at 32.6% in FY22 (FY21: 12.2%). The ratings reflect the partnership structure of the company, high competition in the market, the cyclical nature of the cotton trading industry, as well as the risk of any adverse change in regulatory policies. The ratings reflect the firm's customer concentration. The company caters to its overseas customers and the top 10 customers accounted for about 66% of the total revenue in FY22 (FY21: 62%; FY20: 57%). The ratings however are supported by Relishah's comfortable credit metrics, with its gross interest coverage (operating EBITDA/gross interest expense) improving to 3.2x in FY22 (FY21: 1.0x), owing to an increase in its absolute EBITDA to INR220.3 million (INR60.5 million). The net leverage (total adjusted net debt/operating EBITDA) also reduced to 0.7x in FY22 (FY21: 4.4x), due to a reduction in total debt to INR155.62 million (INR265.7 million). For FY23, Ind-Ra expects deterioration in the company's credit metrics, on account of a reduction in the operating profit. Liquidity Indicator - Adequate: The average maximum utilization of the working capital facilities was 11% for the 12 months ended July 2022. The cash and cash equivalents stood at INR12.1 million at FYE22 (FYE21: INR1 million). At end-January 2022, the firm had un-utilized working capital lines of INR111.5 million, and Ind-Ra believes this will be sufficient to meet the incremental working capital requirement in the near term. Relishah does not have any term debt. The cash flow from operations deteriorated to negative INR195.3 million in FY22 (FY21: negative INR0.8 million), on account of high working capital requirement. Moreover, the free cash flow reduced to negative INR196.4 million in FY22 (FY21: INR7.3 million), with minimal capital expenditure of INR1.6 million. In FY23, Ind-Ra expects cash flow from operations to improve on account of low dependence on working capital requirement due to a likely decline in its top line. The net cash cycle of the company elongated to 59 days in FY22 (FY21: 42) mainly on account of a stretch in debtor realization days to 61 days (49). In FY23, Ind-Ra expects the cash cycle to be elongated on account of a further increase in debtor days with an increase in its inventory holding days. The ratings continue to derive comfort from the founders' more than three decades of experience in the cotton trading industry. Rating Sensitivities Negative: A reduction in the scale of operations or profitability, leading to deterioration in the overall credit metrics along with the liquidity position, on a sustained basis, could be negative for the ratings. Positive: An increase in the scale of operations and profitability, while maintaining the overall credit metrics with the interest coverage remaining above 2x along with an adequate liquidity position, on a sustained basis, could lead to a positive rating action. Company Profile Established in 1987, Relishah is a registered partnership firm engaged in textile trading activities. The firm is into exports of primarily cotton yarn, raw cotton and fabrics. SAGAR AUTOMOBILES: Insolvency Resolution Process Case Summary ------------------------------------------------------------- Debtor: Sagar Automobiles Pvt. Ltd. 8/13, Babji Nagar A.B. Road, Niranjanpur Dewas Naka, Indore MP 452010 Insolvency Commencement Date: August 27, 2022 Court: National Company Law Tribunal, Indore Bench Estimated date of closure of insolvency resolution process: February 21, 2023 (180 days from commencement) Insolvency professional: Mr. Ishwar Lal Kalantri Interim Resolution Professional: Mr. Ishwar Lal Kalantri FH 183 Scheme No. 54 Vijay Nagar, Indore Madhya Pradesh 452010 E-mail: ipkalantri@gmail.com ip.sagarauto@gmail.com Last date for submission of claims: September 10, 2022 SAPTAM DECORE: CARE Withdraws C Rating on Long Term Debt -------------------------------------------------------- CARE Ratings Ltd. has reaffirmed and withdrawn the outstanding ratings of 'CARE C; Stable; Issuer not Cooperating' assigned to the bank facilities of Saptam Decore Private Limited (SDPL) with immediate effect. The proposed debt of the borrower was under non-cooperation due to non-submission of information and subsequently the funds were raised from State Bank of India. Subsequently, the above action has been taken at the request of SDPL 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 - Rating continues to remain Facilities under ISSUER NOT COOPERATING category; Reaffirmed at CARE C; Stable; ISSUER NOT COOPERATING And Withdrawn Detailed description of the key rating drivers Key Rating Weaknesses * Project execution and stabilization risk with debt funding yet to be tied up: SDPL is setting up green field project for manufacturing of bagasse/ wood-based particle board in Muzaffarnagar, Uttar Pradesh with total project cost of INR46.40 crore. The project is proposed to be funded through term loan of INR 30 crore and balance through promoters' contribution. The debt funding is yet to be tied up. The production is expected to commence from October 2019. This exposes the company towards project execution in terms and completion of the project with-in the envisaged time and cost. Furthermore, project stabilization risk of the manufacturing facilities to achieve the envisaged scale of business and scalability risk associated with the products in the light of competitive nature of industry remains crucial for the company. Also, the capital structure of the company is expected to remain leveraged due to debt-funded capex to be undertaken for setting up new manufacturing facilities. * Highly competitive industry: The Company will operate in a highly competitive industry marked by the presence of a large number of players in the organized and unorganized sector which limits bargaining power and exerts pressure on the margins. Key Rating Strengths * Experienced directors: SDPL business risk profile will be benefitted from the extensive experience of promoters in the field of manufacturing specifically in manufacturing of Bagasse/wood based particle board the company is primarily being managed by Mr. Prashant Agarwal and Mrs. Rachna Agarwal. Mr. Prashant Agarwal is a mechanical engineer with around one and half decade of experience in manufacturing of Kraft paper & Duplex Board through his association with the group. Mrs. Rachna Agarwal; another director of SDPL has around one and half decade of experience in the industry through his association with the group. This long-standing experience and expertise in the industry has enabled them to establish good relationship with customers and suppliers. Besides, the promoters of SDPL are also handling other companies like Tirupati Balaji Fibres Limited (CARE BB+; Stable; INC /CARE A4+), Tehri Pulp & Paper Limited (CARE BB+; Stable / CARE A4), Bindals Papers Mills Limited (CARE BBB-; Stable/CARE A3) are into existence for more than two decades which aided into creating its image in regional market. * Location advantage: SDPL's manufacturing facility will be located in Pargana, Muzaffarnagar (Uttar Pradesh). The Industrial belt will ensure easy availability of manpower and procurement of raw material on favourable pricing terms. Muzaffarnagar, Uttar Pradesh-based Saptam Decore Private Limited (SDPL; CIN: U20100UP1995PTC099365) was incorporated in the name Shikhar Capital Services Private Limited in February 1995. In 2016, the name changed to TCMC Merchandise Private Limited. Further in 2017, the name changed to present one. SDPL Is setting up new manufacturing unit which would be located at Pargana, Muzaffarnagar (Uttar Pradesh) and the proposed installed capacity to manufacture the board would be 42,240 TPA. The main raw material for manufacturing would be bagasse, wood and chemicals which company will procure from local manufacturers and suppliers. SHRIRAM TRANSPORT: Fitch Affirms 'BB' LongTerm IDRs, Outlook Stable ------------------------------------------------------------------- Fitch Ratings has affirmed India-based Shriram Transport Finance Company Limited's (STFC) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'BB'. The Outlook is Stable. KEY RATING DRIVERS STFC's rating reflects its established franchise in used commercial-vehicle (CV) financing, seasoned management team, established risk controls and adequate capital and balance sheet buffers. The rating also reflects Fitch's belief the merger of STFC with sister company Shriram City Union Finance Limited (SCUF) and parent Shriram Capital Limited, which was announced in late 2021, will not materially alter STFC's credit profile. STFC's used commercial-vehicle financing segment will form the predominant part (75%-80%) of the post-merger loan book, and should continue to drive the performance of the combined entity in the medium term. SCUF's primary exposure to sub-prime borrowers who fall outside banks' typical customer base is similar to that of STFC. STFC has demonstrated steady performance over recent quarters as well as sufficient funding access. The post-merger combined credit profile of STFC and SCUF is likely to remain resilient amid India's improving economic outlook. Risk appetite could rise as STFC executes its post-merger growth strategy. That said, management of both entities have worked closely on a business, network and technology integration plan to minimise the merger's execution risk. We also expect the cross-selling strategy between SCUF and STFC networks to be well thought out. Mis-steps in customer risk selection remains a risk during cross-selling efforts, but careful pacing of such activities and close analysis of cross-sold loan performance would help avert any major problems. STFC has a higher-risk borrower profile due to its exposure towards non-prime customers. However, its established underwriting processes premised on close borrower contact and careful vehicle collateral valuation have helped to contain credit losses. STFC's high non-performing loan ratio of 7.1% at end-June 2022 (SCUF: 5.8%) reflects its higher-risk customer base, but credit costs have remained lower at an average of 2.7% over the past four years (SCUF: 2.7%) even with pandemic-driven asset-quality pressure. STFC's rural and semi-urban customer base underpinned its high net interest margin of 6.8% in the financial year ended March 2022 (FY22) and 6.9% in FY21 (SCUF: 11.1% in FY22). This, along with a stable operating expense base, resulted in healthy pre-provisioning profitability/gross loans of 6.1% in FY22 and 5.6% in FY21 (6.5% for SCUF in FY22). The combined entity's profitability is likely to improve with moderating asset-quality pressure, improving credit demand and cautious management of margins and operating costs. Management expects some post-merger cost efficiencies, but we believe savings may appear only in the medium term. STFC's debt/tangible equity improved to 4.5x by end-March 2022 from 5.0x at end-March 2021 (SCUF: 3.7x at end-March 2022). Fitch expects little pressure on leverage in the near term even after the merger as internal capital generation should be sufficient to support loan growth targets. STFC benefits from a generally diversified funding mix with adequate banking relationships and access to debt capital markets. Its liquidity buffers have increased over the past two years and we expect management to pare these buffers back as it becomes more confident of the economic outlook. We do not expect any material changes to the funding and liquidity profile after the merger. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: IDRs STFC's rating could be downgraded in the event of significant asset quality and profitability underperformance, weakening liquidity profile due to sustained collection shortfalls that results in a declining liquidity buffer, or leverage consistently greater than 5.5x. A major mis-step in merger execution or a material increase in post-merger risk appetite, marked by loosened underwriting standards or aggressive growth relative to the industry, could also lead to a rating downgrade. Factors that could, individually or collectively, lead to positive rating action/upgrade: IDRs STFC's rating is at the higher end of Fitch's Indian non-bank financial institution (NBFI) rating universe and an upgrade is less likely in the near term. In the longer-term, an upgrade will depend on a material strengthening in the operating environment and domestic financial system, stability in asset quality, sustained improvement in profitability and leverage below 4x debt/tangible equity on a sustained basis. A lower-risk operating environment and tighter management of asset-quality metrics may increase STFC's leverage tolerance over time. DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS MTN PROGRAMME, SENIOR SECURED DEBT The ratings on STFC's medium-term note (MTN) programme and foreign-currency senior secured debt are at the same level as its Long-Term Foreign-Currency IDR, while the rupee-denominated senior secured debt is rated at same level as its Long-Term Local-Currency IDR in accordance with Fitch's rating criteria. Indian NBFI borrowings are typically secured and Fitch believes that non-payment of their senior secured debt would best reflect uncured failure of the entity. NBFIs can issue unsecured debt in overseas markets, but such debt is likely to constitute a small portion of their funding and thus cannot be viewed as their primary financial obligations. DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: MTN PROGRAMME, SENIOR SECURED DEBT Any positive action on STFC's Long-Term IDRs would result in similar action on the MTN programme and senior secured debt ratings. Factors that could, individually or collectively, lead to negative rating action/downgrade: MTN PROGRAMME, SENIOR SECURED DEBT Any negative action on STFC's Long-Term IDRs would drive similar action on its MTN programme and senior secured debt ratings. REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING The principal sources of information used in the analysis are described in the Applicable Criteria. ESG CONSIDERATIONS STFC has an ESG Relevance Score of '3' for Customer Welfare, compared with the standard score of '2' for the finance and leasing sector. This reflects its retail-focused operations, which exposes it to risks around fair-lending, pricing-transparency and repossession, foreclosure and collection practices. Aggressive practices in these areas may subject the company to legal, regulatory and reputational risk that may negatively affect its credit profile. The relevance score of '3' for this factor reflects Fitch's view that these risks are adequately managed and have a low impact on STFC's credit profile at present. 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. SIX SIGMA: CARE Reaffirms B+ Rating on INR12.21cr LT Loan --------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of Six Sigma Readymix Concrete Private Limited (SSRC), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank Facilities 12.21 CARE B+; Stable Reaffirmed Detailed rationale and key rating drivers The rating assigned to the bank facilities of SSRC continues to be tempered by short track record and small scale of operations, leveraged capital structure and weak debt coverage indicators, highly fragmented and competitive industry and vulnerability of profits to volatility in input costs. The rating continues to derive strength from experience of the promoters for more than a decade in cement industry. Rating sensitivities Positive factors – Factors that could lead to positive rating action/upgrade: * TOI of more than INR40.00 crore on consistent basis coupled with sustainable operating margins at 10% or above. Negative factors – Factors that could lead to negative rating action/downgrade: * Drop in PBILDT margins below 5% on a continuous basis. * Deterioration in overall gearing to above 6.00x. Detailed description of the key rating drivers Key rating weaknesses * Short track record and small scale of operations: The company was incorporated on March 14, 2016 and started operations in April 2016. The scale of operations of the company remained small marked by a total operating income (TOI) of INR33.34 crore in FY22 (PY: INR28.21 crore). Leveraged capital structure and weak debt coverage indicators Capital structure of SSRC continues to be leveraged. The overall gearing stood moderate however improved to 3.59x as on March 31, 2022 (PY: 4.37x) due to high working capital utilizations coupled with low net worth base of INR5.08 crore as on March 31, 2022 (Prov.). The debt protection metrics marked by Total debt/GCA continued to be weak at 7.90x as on March 31, 2022. The company had planned for a large capex of INR40.0 crore fully funded by term loans towards building a new plant in Kadalur to increase production capacity. The capex is expected to commence from November 2022 and the COD is expected on December 2023. The large debt funded capex is expected to moderate the capital structure and debt coverage metrics further in the medium term. * Highly fragmented and competitive business segment due to presence of numerous players and association of profits to the real estate industry: The company is engaged into a fragmented business segment and competitive industry. The market consists of several small to medium-sized firms that compete with each other along with several large enterprises. There are several small sized companies in and around Chennai, Coimbatore and areas in Karnataka, which compete with SSRC. The end product of SSRC finds its application in the construction industry. And hence the business risk profile of SSRC is directly linked to that of the construction and real estate sector. * Vulnerability of profits to volatility in input costs: The major cost drivers for SSRC are power costs and fuel costs for freight and raw materials viz cement, blue metals which accounted for nearly 87% of the total cost of sales during FY22 (86% in FY21 & 90% in FY20). Fuel costs also remain highly volatile due to impact of international crude oil prices. The PBILDT margin of the company has been volatile in the range of 9.5% to 13.5% over the past three years ended FY22. Key rating strengths * Experience of the promoters in cement industry: SSRC's day to day operations are managed by Mr. C. Sekhara Srinivasan (Managing Director) and Mr. Nagendran Rajkumar (Director). Mr.C. Sekhara Srinivasan is an Engineering graduate by qualification and has more than a decade of experience in related field. Mr. Nagendran Rajkumar, a law graduate also has more than one decade of experience in the fields of legal matters and jewellery business. Due to long experience of the promoters, the company had established long term relationship with clientele. Liquidity: Stretched The liquidity position remains stretched with tightly matched accruals against the repayment obligation and moderate cash balance of INR1.45 crore as on March 31, 2022. The working capital cycle remains elongated at 110 days in FY22 (PY: 138 days). The company has been sanctioned working capital limits of INR10.0 crore and the average utilization of the same stood high at 98% for the past twelve months ended April 2022. The current ratio stood moderate at 1.18x as on March 31, 2022. Six Sigma Readymix Concreate (SSRC) was incorporated on March 14, 2016 as a Private Limited company and promoted by Mr.C. Sekhara Srinivasan, Mr. P. Nagendran Rajkumar along with other promoters. The Company is engaged into manufacturing of Ready-Mix Concrete (RMC) and trading of cement. The company has five plants located in Coimbatore, Chennai, Trichy, Kaaramadai and Gobichettipalayam. SPES HOSPITAL: CARE Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Spes Hospital (SH) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 5.83 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 6, 2021, placed the rating(s) of SH under the 'issuer non-cooperating' category as SH 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. SH continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 22, 2022, June 1, 2022, June 11, 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). SPES Hospital was established in November 2014 as a partnership firm by Dr. Rakesh, Dr. Manoj and Mr. Manjeet Singh. It is located in Bhiwani, Haryana with capacity of 100 beds. The operations of the hospital commenced from December 2015. The hospital covers all the basic departments, such as neurology, cardiology, general surgery, ortho, plastic surgery, pediatrics, xray, medicine, Ear-Nose-Throat (ENT), Maternity Gynecology, plastic surgery, trauma centre, etc. The hospital is also associated with third party insurance companies. SWASTIK COAL: CARE Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of Swastik Coal Corporation Private Limited (SCCPL) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 55.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 320.00 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 SCCPL under the 'issuer non-cooperating' category as SCCPL 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. SCCPL 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). SCCPL is a flagship company of Swastik group (SG) and Mr. Vishnu Prasad Jindal is the founder promoter of the company. SCCPL 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. SCCPL is also engaged in trading of domestic coal purchased through e-auction route from Coal India Ltd. and its subsidiaries. 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. YCD INDUSTRIES: Ind-Ra Affirms 'BB+' Long-Term Issuer Rating ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has affirmed YCD Industries Limited's (YCDIL) Long-Term Issuer Rating at 'IND BB+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR150 mil. (reduced from INR290 mil.) Fund-based facilities affirmed with IND BB+/Stable/ IND A4+ rating; -- INR160 mil. Proposed fund-based facilities assigned with IND BB+/Stable/ IND A4+ rating; -- INR40 mil. Non-fund-based facilities affirmed with IND A4+ rating; and -- INR80 mil. (reduced from INR99.3 mil.) Term loan due on April 2025 affirmed with IND BB+/Stable rating. Key Rating Drivers Liquidity Indicator - Stretched: YCDIL's average maximum utilization of the fund-based facilities was high at 93% for the 12 months ended July 2022. Furthermore, the firm does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. At FYE22, YCDIL had cash and cash equivalents of INR1.62 million (FYE21: INR4.1 million). The net working capital cycle improved to 80 days in FY22 (FY21: 132 days) due to a decrease in the inventory days to 59 days (103 days). The cash flow from operations rose to INR116.89 million in FY22 (FY21: 24.42 million) due to an increase in the fund flow from operations to INR81.66 million in FY22 (FY21: INR38.32 million). The rating reflects YCDIL's average EBITDA margins due to the intense competition in the industry, resulting from the fragmented nature of the business. The margin improved to 5.55% in FY22 (FY21: 4.85%) due to higher realizations of cotton yarn and the consequent reduction in the share of power cost in the revenue to 5.27% (FY21: 6.7% of revenue). The ROCE was 11.9% in FY22 (FY21: 4.7%). In FY23, the EBITDA margins are likely to remain at similar levels. The ratings factor in YCDIL's continued medium scale of operations, as indicated by revenue of INR1,917.24 million in FY22 (FY21: INR1,303.78 million). The revenue grew mainly due to an increase in cotton yarn (finished good) prices by 30% and higher demand, with capacity utilization increasing to 87% (78%). The company booked a revenue of INR612.72 million in 1QFY23. As on 18 August 2022, YCDIL had an orderbook of INR302.43 million, scheduled to be executed in the next 1.5-to-two months. Cotton yarn prices are likely to fall in FY23. Furthermore, YCDIL's capacity utilization was already high in FY22, and the firm does not have any capex plans. Hence, the volumes are unlikely to see any significant growth in FY23. Consequently, Ind-Ra expects the revenue to decline marginally in FY23. The rating is, however, supported by YCDIL's comfortable credit metrics. The metrics improved in FY22 due to a decrease in the total borrowings to INR308.64 million (FY21: INR365 million), the resultant fall in interest expenses, and a rise in the absolute EBITDA to INR106.47 million (INR63.24 million). The gross interest coverage (operating EBITDA/net interest expense) was 4.67x in FY21 (FY20: 2.43x) and the net leverage (net adjusted debt/operating EBITDA) was 2.88x (5.71x). Ind-Ra expects the credit metrics to remain stable in FY23. The ratings are also supported by the management's experience of more than two decades in the textile industry, which has led to established relationships with customers and suppliers. Rating Sensitivities Positive: Improvement in the liquidity and scale of operations while maintaining the credit metrics will be positive for the ratings. Negative: Decline in the EBITDA margins and/or deterioration in the liquidity position, leading to weakening of the credit metrics, with the gross interest coverage reducing below 1.7x, all on a sustained basis, will be negative for the ratings. Company Profile Incorporated in 1992, YCD Industries manufactures cotton and polyester yarn. The company is located in Rupnagar, Punjab. ===================== N E W Z E A L A N D ===================== AMSTED LIMITED: Court to Hear Wind-Up Petition on Sept. 23 ---------------------------------------------------------- A petition to wind up the operations of Amsted Limited will be heard before the High Court at Auckland on Sept. 23, 2022, at 10:00 a.m. The Commissioner of Inland Revenue filed the petition against the company on Aug. 1, 2022. The Petitioner's solicitor is: Cloete Van Der Merwe Inland Revenue, Legal Services 5 Osterley Way Manukau City Auckland 2104 BEST QUALITY: Creditors' Proofs of Debt Due on Oct. 18 ------------------------------------------------------ Creditors of Best Quality Limited are required to file their proofs of debt by Oct. 18, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 6, 2022. The company's liquidators are: Pritesh Patel Patel & Co 344 Great South Road Papatoetoe Auckland 2215 HILLSBOROUGH BUILDING: Court to Hear Wind-Up Petition on Oct. 7 --------------------------------------------------------------- A petition to wind up the operations of Hillsborough Building Limited will be heard before the High Court at Auckland on Oct. 7, 2022, at 10:45 a.m. Rock and Rubble Limited filed the petition against the company on Aug. 11, 2022. The Petitioner's solicitor is: Brett Leeson Martelli HC Legal Limited Level 1, 19 Mauranui Avenue Newmarket Auckland RK & JJ: Creditors' Proofs of Debt Due on Oct. 13 ------------------------------------------------- Creditors of RK & JJ Limited are required to file their proofs of debt by Oct. 13, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 1, 2022. The company's liquidators are: Keaton Pronk Iain McLennan McDonald Vague Limited PO Box 6092 Victoria Street West Auckland 1142 SHORE LIVING: Creditors' Proofs of Debt Due on Oct. 5 ----------------------------------------------------- Creditors of Shore Living Limited are required to file their proofs of debt by Oct. 5, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 7, 2022. The company's liquidators are: Steven Khov Kieran Jones Khov Jones Limited PO Box 302261 North Harbour Auckland 0751 ================= S I N G A P O R E ================= DFS ASSET: Fitch Assigns BB Rating to Class B Notes Due 2027 ------------------------------------------------------------ Fitch Ratings has assigned ratings to DFS Asset Purchase Company Pte. Ltd.'s asset-backed fixed-rate and floating-rate notes as below. The issuance consists of notes backed by credit card receivables originated by Diners Club (Singapore) Private Limited (DCS). SGD35.0 million working-capital facility (WCF) due September 2025: 'A-sf'; Outlook Stable; SGD5.0 million standby liquidity facility (SBLF) due September 2025: 'A-sf'; Outlook Stable; SGD100.0 million class A1 notes due September 2027: 'A-sf'; Outlook Stable; SGD90.0 million class A2 notes due September 2027: 'A-sf'; Outlook Stable; SGD27.5 million class B notes due September 2027: 'BBsf'; Outlook Stable; SGD10.0 million junior notes due September 2027: 'NRsf'; SGD22.5 million seller notes due September 2027: 'NRsf' RATING ACTIONS ENTITY / DEBT RATING ------------- ------ DFS Asset Purchase Company Pte. Ltd. (2022 refinance) A1 LT A-sf New Rating A2 LT A-sf New Rating B LT BBsf New Rating Junior Notes LT NRsf New Rating Seller's Notes LT NRsf New Rating Stand By Liquidity Facility LT A-sf New Rating Working Capital Facility LT A-sf New Rating KEY RATING DRIVERS Receivables Performance: The issuer's ability to meet payment obligations is closely linked to the performance of DCS's securitised credit card receivables. Fitch analysed the originator's historical data for credit cards and charge cards along with forward-looking asset analysis to derive Fitch's expectations of base-case default rate, monthly payment rate (MPR) and yield rate for each product to assess the portfolio's credit risk. Originator and Servicer Quality: DCS is an active originator of credit card receivable securitisation transactions. Fitch held discussions with DCS's management teams from various departments on 8 July 2022 and a loan file review was conducted before closing. Fitch found DCS's underwriting and servicing capabilities adequate to the ratings. Counterparty Risk: Counterparty risks arise in all situations where the transaction places either operational reliance or dependency on payment obligations from counterparties or other supporting parties. The transaction has eligibility criteria and replacement provisions for key counterparties such as the account banks in place, which are in line with Fitch's criteria. Sufficient Credit Enhancement: Initial minimum note subordination is 24% for class A notes, 13% for class B notes and 6% for junior notes. The transaction also benefits from a reserve held in the name of the SPV funded by the SBLF drawdown, which covers note interest and senior expenses as well as dilution risk. Stable Macroeconomic Conditions: The Singapore economy also supports a stable environment for the transaction and Stable Outlook for the ratings. Fitch forecasts Singapore's GDP to expand by 4.0% in 2022 and 3.7% in 2023. Rating Cap: Ratings are capped in the 'A' category, considering the very small market share and survivability of DCS in the Singapore credit card market. The ratings are also constrained by high sensitivity to MPR. Moreover, unhedged interest-rate risk exposure makes the transaction incompatible with a higher investment grade. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: Fitch evaluated the sensitivity of the ratings assigned to DFS Asset Purchase Company's notes to increased weighted-average (WA) base-case charge-offs, decreased WA base-case MPR and the combination of stressed charge-offs and MPR over the life of the transaction. Rating sensitivities provide insights into the model-implied sensitivities the transaction faces when one risk factor is stressed, while holding others equal. Sensitivity to increased WA charge-offs (25% / 50% / 75%): Class A notes/WCF/SBLF: A-sf/ A-sf /BBBsf Class B notes: BBsf / BB-sf / B+sf Sensitivity to decreased WA MPR (15% / 25% / 35%): Class A notes/WCF/SBLF: A-sf / BBBsf / BBsf Class B notes: BB-sf / Bsf / below Bsf Fitch also analysed the sensitivity to a combination of increased WA default rates and decreased WA MPRs (25% and 15% / 50% and 25% / 75% and 35%): Class A notes/WCF/SBLF: BBB+sf / BB+sf / B+sfClass B notes: B+sf / below Bsf / below Bsf Factors that could, individually or collectively, lead to positive rating action/upgrade: The note ratings are capped and upgrades can be considered only if the risk elements underpinning the rating cap are reduced. JME ENGINEERING: Creditors' Proofs of Debt Due on Oct. 17 --------------------------------------------------------- Creditors of JME Engineering Pte. Ltd. are required to file their proofs of debt by Oct. 17, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 7, 2022. The company's liquidators are: Don M Ho David Ho Chjuen Meng C/o Avery Corporate Advisory 63 Market Street #05-01A Bank of Singapore Centre Singapore 048942 KAGOSHIMA SHIPHOLDING: Members' Final Meeting Set for Oct. 9 ------------------------------------------------------------ Members of Kagoshima Shipholding Pte. Ltd, Macaron Shipholding Pte. Ltd, and Gana Shipping Pte. Ltd will hold their final meeting on Oct. 9, 2022, at 10:00 a.m., at 6 Shenton Way, OUE Downtown 2, #33-00, in Singapore. At the meeting, Lau Chin Huat, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. UNBOUND INNOVATIONS: Creditors' Meetings Set for Sept. 27 --------------------------------------------------------- Unbound Innovations (Asia) Pte Ltd, which is in compulsory liquidation, will hold a meeting for its creditors on Sept. 27, 2022, at 11:00 a.m., via video conference. Agenda of the meeting includes: a. to provide an update on the status of the liquidation; b. to approve the Liquidators' fees; and c. to discuss other business. The company's liquidator is: Lim Soh Yen c/o 133 New Bridge Road #24-01/02 Chinatown Point Singapore 059413 ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman, Editors. Copyright 2022. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. 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