/raid1/www/Hosts/bankrupt/TCRAP_Public/221110.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
Thursday, November 10, 2022, Vol. 25, No. 219
Headlines
A U S T R A L I A
BRAZILIAN BEAUTY: Second Creditors' Meeting Set for Nov. 15
CRYPT CONSTRUCTIONS: First Creditors' Meeting Set for Nov. 16
ESQUE GROUP: Second Creditors' Meeting Set for Nov. 16
LA TROBE 2022-2: S&P Assigns BB- (sf) Rating to Class F Notes
LIBERTY FUNDING 2022-1: Moody's Gives Ba3 Rating to AUD5MM F Notes
PARADISE MOTOR: Second Creditors' Meeting Set for Nov. 16
QANTAS AIRWAYS: Egan-Jones Keeps 'BB-' Local Currency Unsec. Rating
WILMOT ENGINEERING: Goes Into Liquidation
WONDERFUL CAPITAL: First Creditors' Meeting Set for Nov. 16
C H I N A
COUNTRY GARDEN: S&P Cuts ICR to 'B+' on Narrowing Funding Channels
HUADI INTERNATIONAL: Sinks 91% After Selling Shares at a Discount
H O N G K O N G
[*] HONG KONG: No. of Suspended HKEX-Listed Firms Up 10%
I N D I A
AGM AUTO PRIVATE: Insolvency Resolution Process Case Summary
ASHA ENTERPRISE: CARE Keeps D Debt Ratings in Not Cooperating
ASHTAVINAYAK BUILDERS: CARE Keeps C Debt Rating in Not Cooperating
BALDEV KRISHAN: CARE Keeps D Debt Rating in Not Cooperating
BAYANTREE INFRADEVELOPERS: Insolvency Resolution Case Summary
BISI ENGINEERING: CARE Keeps B- Debt Rating in Not Cooperating
BRAHMAPUTRA TMT BARS: Insolvency Resolution Process Case Summary
D S DEVELOPERS: CARE Keeps B- Debt Rating in Not Cooperating
DABANG METAL: CARE Keeps D Debt Rating in Not Cooperating
DASHMESH RICE: CARE Keeps C Debt Rating in Not Cooperating
DHURIA RICE: CARE Keeps C Debt Rating in Not Cooperating
DROPBASE SOFTWARE: Insolvency Resolution Process Case Summary
GEPONG: CARE Lowers Rating on INR6.30cr LT Loan to B
GMR HYDERABAD: CARE Reaffirms D Rating on INR1,112.19cr LT Loan
GMR RAJAHMUNDRY: CARE Keeps D Debt Ratings in Not Cooperating
GVK GAUTAMI: CARE Keeps D Debt Rating in Not Cooperating Category
KANISH SPINNING: CARE Withdraws B- Long Term Debt Rating
KGN DECCAN ENGINEERING: Insolvency Resolution Process Case Summary
M J HOME: CARE Keeps B- Debt Rating in Not Cooperating Category
MAINAK AGRO: CARE Lowers Rating on INR4.54cr LT Loan to B-
NAVEEN DISTRIBUTORS: CARE Lowers Rating on INR4.97cr Loan to B
PRITHVI ENERGY: Insolvency Resolution Process Case Summary
R V REALTY: CARE Keeps D Debt Rating in Not Cooperating Category
RAJENDRA RICE: CARE Keeps C Debt Ratings in Not Cooperating
RAMANI ICECREAM: CARE Hikes Rating on INR50.01cr LT Loan to B
RLJ INFRACEMENT: CARE Keeps D Debt Rating in Not Cooperating
RUCHI WORLDWIDE: CARE Keeps D Debt Ratings in Not Cooperating
SAGGI ELECTRIC: CARE Keeps B- Debt Rating in Not Cooperating
SAHARA HOSPITALITY: CARE Keeps D Debt Ratings in Not Cooperating
SANDIPAN PRAMANIK: CARE Lowers Rating on INR10cr LT Loan to B-
SAURASHTRA SPECIALITIES: Insolvency Resolution Process Case Summary
SM1 CONSTRUCTION: CARE Lowers Rating on INR3cr LT Loan to B-
SMT. SHAKUNTLA: CARE Keeps D Debt Ratings in Not Cooperating
STERLING OIL: CARE Keeps D Debt Rating in Not Cooperating Category
SUPERIOR FOOD: CARE Reaffirms C Rating on INR65cr LT Loan
TECHNICAL PRODUCT: CARE Hikes Rating on INR8cr ST Loan from D
TITAGARH WAGONS: Insolvency Resolution Process Case Summary
UDIPTA ENERGY: CARE Withdraws D Long/Short Term Debt Ratings
ULTRAMINE PIPETECH: Insolvency Resolution Process Case Summary
VAIBHAVLAXMI CLEAN: CARE Keeps D Debt Rating in Not Cooperating
VALECHA ENGINEERING: Insolvency Resolution Process Case Summary
VISHAL LAKTO: Insolvency Resolution Process Case Summary
I N D O N E S I A
KAWASAN INDUSTRI: S&P Lowers LT ICR to 'CC' on Distressed Exchange
J A P A N
MITAMADO MOTOMACHI: Sapporo Temple Goes Bankrupt
TOBU RAILWAY: Egan-Jones Keeps 'BB-' Local Currency Unsec. Rating
N E W Z E A L A N D
ARK HOTELS: Creditors' Proofs of Debt Due on Dec. 16
HEADWAY PSYCHOLOGY: Court to Hear Wind-Up Petition on Nov. 10
KELLISA FARMS: BDO Tauranga Limited Appointed as Liquidators
NEW ZEALAND LJ: Court to Hear Wind-Up Petition on Nov. 15
PLANTTECH RESEARCH: Board Votes to Put Company Into Liquidaton
WELLNESS HAVEN: Court to Hear Wind-Up Petition on Nov. 11
S I N G A P O R E
CARE FOODS: Court to Hear Wind-Up Petition on Nov. 25
E2O PTE: Creditors' Proofs of Debt Due on Dec. 9
FAST RADIUS: Case Summary & 20 Largest Unsecured Creditors
MARINE TEC: Commences Wind-Up Proceedings
REALLYWORKS PTE: Court Enters Wind-Up Order
VIENNA INTERNATIONAL: Court to Hear Wind-Up Petition on Nov. 25
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A U S T R A L I A
=================
BRAZILIAN BEAUTY: Second Creditors' Meeting Set for Nov. 15
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Brazilian
Beauty (Stores) Pty Ltd has been set for Nov. 15, 2022, at 9:00
a.m. at the offices of McLeod & Partners at Level 9, 300 Adelaide
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 Nov, 14, 2022, at 4:00 p.m.
Jonathan Paul McLeod and Bill Karageozis of McLeod & Partners were
appointed as administrators of the company on Oct. 11, 2022.
CRYPT CONSTRUCTIONS: First Creditors' Meeting Set for Nov. 16
-------------------------------------------------------------
A first meeting of the creditors in the proceedings of Crypt
Constructions Pty. Ltd. will be held on Nov. 16, 2022, at 11:00
a.m. at the offices of CPA Australia at Level 20, 28 Freshwater
Place at Southbank and via videoconferencing facility.
Richard Lawrence, Richard Albarran, and Brent Kijurina of Hall
Chadwick were appointed as administrators of the company on Nov. 4,
2022.
ESQUE GROUP: Second Creditors' Meeting Set for Nov. 16
------------------------------------------------------
A second meeting of creditors in the proceedings of Esque Group Pty
Ltd has been set for Nov. 16, 2022, at 10:30 a.m. via
teleconference only.
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 Nov. 15, 2022, at 4:00 p.m.
Kathleen Vouris and Richard Albarran of Hall Chadwick were
appointed as administrators of the company on Oct. 12, 2022.
LA TROBE 2022-2: S&P Assigns BB- (sf) Rating to Class F Notes
-------------------------------------------------------------
S&P Global Ratings assigned its ratings to eight of the 10 classes
of residential mortgage-backed securities (RMBS) issued by
Perpetual Corporate Trust Ltd. as trustee for La Trobe Financial
Capital Markets Trust 2022-2. La Trobe Financial Capital Markets
Trust 2022-2 is a securitization of nonconforming and prime
residential mortgages originated by La Trobe Financial Services Pty
Ltd. (La Trobe Financial).
The ratings reflect:
-- That the credit risk of the underlying collateral portfolio and
the credit support provided to each class of notes are commensurate
with the ratings assigned. Credit support is provided by
subordination and excess spread. The assessment of credit risk
takes into account La Trobe Financial's underwriting standards and
approval process, and La Trobe Financial's servicing quality.
-- That the transaction's cash flows can meet timely payment of
interest and ultimate payment of principal to the noteholders under
the rating stresses. Key factors are the level of subordination
provided, the condition that a minimum margin will be maintained on
the assets, an amortizing liquidity facility sized at 1.5% of the
note balance, the principal draw function, the yield reserve, the
retention amount built from excess spread before the call date, the
amortization amount built from excess spread after the call date or
upon a servicer default, and the provision of an extraordinary
expense reserve. All rating stresses are made on the basis that the
trust does not call the notes at or beyond the call date, and that
all rated notes must be fully redeemed via the principal waterfall
mechanism under the transaction documents.
-- That S&P also has factored into its ratings the legal structure
of the trust, which has been established as a special-purpose
entity and meets our criteria for insolvency remoteness.
-- The counterparty support provided by National Australia Bank
Ltd. as liquidity facility provider and Commonwealth Bank of
Australia as bank account provider. The transaction documents for
the liquidity facility and bank accounts include downgrade language
consistent with S&P's "Counterparty Risk Framework: Methodology And
Assumptions" criteria, published on March 8, 2019, that requires
the replacement of the counterparty or other remedy, should its
rating fall below the applicable rating.
Ratings Assigned
La Trobe Financial Capital Markets Trust 2022-2
Class A1S, A$187.50 million: AAA (sf)
Class A1L, A$386.25 million: AAA (sf)
Class A2, A$67.50 million: AAA (sf)
Class B, A$51.52 million: AA (sf)
Class C, A$17.85 million: A (sf)
Class D, A$14.93 million: BBB+ (sf)
Class E, A$9.22 million: BB+ (sf)
Class F, A$6.23 million: BB- (sf)
Equity 1, A$7.12 million: Not rated
Equity 2, A$1.88 million: Not rated
LIBERTY FUNDING 2022-1: Moody's Gives Ba3 Rating to AUD5MM F Notes
------------------------------------------------------------------
Moody's Investors Service has assigned the following definitive
ratings to the notes issued by Liberty Funding Pty Ltd in respect
of Liberty Series 2022-1 SME.
Issuer: Liberty Funding Pty Ltd in respect of the Liberty Series
2022-1 SME
AUD127.0 million of Class A1a Notes, Assigned Aaa (sf)
AUD360.0 million of Class A1b Notes, Assigned Aaa (sf)
AUD146.3 million of Class A2 Notes, Assigned Aaa (sf)
AUD45.8 million of Class B Notes, Assigned Aa2 (sf)
AUD16.8 million of Class C Notes, Assigned A2 (sf)
AUD13.3 million of Class D Notes, Assigned Baa1 (sf)
AUD15.0 million of Class E Notes, Assigned Ba1 (sf)
AUD5.0 million of Class F Notes, Assigned Ba3 (sf)
The AUD20.8 million of Class G notes are not rated by Moody's.
The transaction is a securitisation of first-ranking mortgage loans
to self-managed superannuation funds (SMSFs), small- and
medium-sized enterprises (SMEs) and individuals, originated and
serviced by Liberty Financial Pty Ltd (Liberty, unrated). The
mortgage loans are secured by commercial, residential, or both
commercial and residential properties in Australia and denominated
in Australian dollars.
Liberty is an Australian non-bank lender that started originating
non-conforming residential mortgages in 1997. It subsequently
expanded into prime residential mortgage origination, as well as,
among others, auto loans, small commercial mortgage loans and
personal loans. As of June 2022, Liberty has total receivables of
AUD13 billion.
RATINGS RATIONALE
The definitive ratings take into account, among other factors:
The evaluation of the underlying receivables and their expected
performance;
The credit enhancement provided by note subordination, the
guarantee fee reserve and excess spread;
The legal structure and availability of the liquidity facility;
and
The credit strength and experience of Liberty as servicer.
According to Moody's, the transaction benefits from various credit
strengths such as relatively high subordination to the senior
notes, low weighted average loan to value (LTV) of the underlying
portfolio, and a guarantee fee reserve. However, Moody's notes that
the transaction features some credit weaknesses such as the
proportion of bullet loans within the portfolio and the pro rata
amortisation of rated notes under certain conditions.
Key transactional features are as follows:
Class A1 and Class A2 notes benefit from 35.07% and 15.56% of
subordination respectively.
Principal collections will be at first distributed sequentially.
Starting from the second anniversary from closing, all notes
(excluding the Class G notes) may participate in proportional
principal collections distribution subject to the step down
conditions being satisfied. The step down criteria include, among
others, no charge offs on any of the notes, average arrears greater
than 60 days not exceeding 4.0% of the aggregate loan amount and
there are no Class A1a notes outstanding. Principal pay-down will
revert to sequential once the aggregate loan amount is 20.0% or
less of the aggregate loan amount at closing, or on or following
the payment date in September 2026.
The guarantee fee reserve, which is unfunded at closing, will
build up to a limit of AUD3.75 million from excess spread. The
reserve account will firstly be available to meet losses on the
loans and charge offs against the notes. Secondly, it can be used
to cover any required payment shortfalls that remain after
liquidity facility and principal draws.
Key portfolio features are as follows:
Due to the mixed nature of the pool, the portfolio is categorised
into SME and residential loan sub-pools.
The SME sub-pool, representing 41.5% of the overall portfolio,
primarily includes loans to company borrowers. The residential loan
sub-pool, representing 58.5% of the overall portfolio, primarily
includes loans to individuals.
The weighted average scheduled LTV of the combined portfolio is
61.7%, with only 1.3% of the loans with a scheduled LTV above
80.0%.
Around 1.6% of the portfolio comprises bullet loans i.e. loans
requiring a lump sum repayment of principal at the end of the loan
term. These loans do not amortise over the initial term of up to
five years and rely on either refinancing or sale of the underlying
property to repay the loan at maturity.
In addition to the bullet loans, the portfolio contains 14.4% of
loans with an initial interest only period of up to five years,
converting to principal and interest thereafter.
Key model and portfolio assumptions:
For the total pool, Moody's portfolio credit enhancement ("PCE")
representing the loss that Moody's expects the portfolio to suffer
in the event of a severe recession scenario is 15.4% for the
combined portfolio. Moody's mean expected loss for the combined
portfolio is 2.2%. For the SME sub-pool, the PCE is 23.8% and mean
expected loss is 3.7%. For the residential loan sub-pool, Moody's
Individual Loan Analysis Credit Enhancement (MILAN CE) is 8.2% and
mean expected loss is 1.0%.
Methodology Underlying the Rating Action:
The methodologies used in these ratings were "Moody's Approach to
Rating RMBS Using the MILAN Framework" published in July 2022.
Factors that would lead to an upgrade or downgrade of the ratings:
Factors that could lead to an upgrade of the notes include rapid
build-up of credit enhancement, due to sequential amortisation, or
better-than-expected collateral performance. The Australian
macroeconomic conditions and the housing market are primary drivers
of performance.
A factor that could lead to a downgrade of the notes is
worse-than-expected collateral performance. Other reasons that
could lead to a downgrade include poor servicing, error on the part
of transaction parties, deterioration in credit quality of
transaction counterparties, fraud, or a lack of transactional
governance.
PARADISE MOTOR: Second Creditors' Meeting Set for Nov. 16
---------------------------------------------------------
A second meeting of creditors in the proceedings of Paradise Motor
Homes (QLD) Pty Limited been set for Nov. 16, 2022, at 2:30 p.m.,
respectively, via teleconference and at the Oaks Gold Coast Hotel,
2801 Gold Coast Highway in Surfers Paradise.
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 Nov. 15, 2022, at 4:00 p.m.
Jason Tang and Barry Wight of Cor Cordis were appointed as
administrators of the company on Oct. 12, 2022.
QANTAS AIRWAYS: Egan-Jones Keeps 'BB-' Local Currency Unsec. Rating
-------------------------------------------------------------------
Egan-Jones Ratings Company, on October 4, 2022, retained the 'BB-'
local currency senior unsecured rating on debt issued by Qantas
Airways Ltd.
Headquartered in Mascot, Australia, Qantas Airways Limited provides
airline services.
WILMOT ENGINEERING: Goes Into Liquidation
-----------------------------------------
The West Australian reports that South Boulder company Wilmot
Engineering has gone into liquidation, and expressions of interest
are being sought for the sale of the firm's plant, equipment, land
and building assets.
According to The West Australian, the news came to light in a
public notice in Nov. 9's Kalgoorlie Miner, which said Greg Quin
and Kim Wallman of HLB Mann Judd Insolvency WA were the joint
liquidators.
The notice said the deadline for expressions of interest was
November 16.
Mr. Quin declined to comment on the situation when the Kalgoorlie
Miner contacted him on Nov. 9.
The company's managing director, Graeme Wilmot, also declined to
comment when the Kalgoorlie Miner contacted him on Nov. 9, the
report relays.
Wilmot Engineering offered services in fabrication and welding,
machining and mechanical fitting, boiler-making and labour hire.
WONDERFUL CAPITAL: First Creditors' Meeting Set for Nov. 16
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of Wonderful
Capital Biotechnology Group Pty Ltd will be held on Nov. 16, 2022,
at 11:00 a.m. via virtual meeting only.
Danny Vrkic of DV Recovery Management was appointed as
administrator of the company on Nov. 7, 2022.
=========
C H I N A
=========
COUNTRY GARDEN: S&P Cuts ICR to 'B+' on Narrowing Funding Channels
------------------------------------------------------------------
On Nov. 8, 2022, S&P Global Ratings lowered its long-term issuer
credit rating on Country Garden Holdings Co. Ltd. to 'B+' from
'BB'.
S&P subsequently withdrew its issuer credit rating on Country
Garden at the company's request. The rating outlook was negative at
the time of the withdrawal.
S&P said, "We lowered the ratings to reflect narrowing funding
channels for Country Garden. The company's funding channels in both
onshore and offshore bond markets have been closed off amid fading
market confidence in private Chinese developers. In our view, it
will need to rely heavily on internal resources to settle its
upcoming bond maturities and bank syndicated loans. This could
undermine Country Garden's existing cash buffer. We also believe
interest coverage will deteriorate due to a lack of access to
low-cost funding from offshore markets." This used to be a core
strength of Country Garden. On the back of the company's
deteriorating credit market standing, we now assess its liquidity
to be less than adequate, from adequate previously.
The company has a high proportion of bank funding, with onshore
bank borrowings accounting for 47% of its total debt. While it is
likely to have access to most of its major banks, any weakening in
banking relationships will weigh on liquidity.
S&P believes other funding channels (including asset-pledged loans)
will be limited for Country Garden, given its lack of a sizable
investment property portfolio. This is despite the fact that the
company was one of a few privately owned developers guided by the
government to issue guaranteed onshore bonds in September 2022.
With this help, it successfully issued a Chinese renminbi (RMB) 1.5
billion onshore medium-term note that China Bond Insurance Co. Ltd.
(a state-owned financial institution) fully guaranteed.
Country Garden's sizable cash on hand mitigates near-term liquidity
risks. The company had about RMB77 billion of unrestricted cash
(excluding cash from escrow accounts) at the end of June 2022. The
amount covered its short-term debt maturities of RMB73 billion, of
which bank loans (mainly onshore) accounted for RMB45 billion. That
said, any further regulatory tightening on cash accessibility from
bank escrow accounts will reduce its liquidity.
Sales performance could be weaker than the overall market in the
next 12 months. Country Garden has high exposure to lower-tier
cities, at 66 % of its salable resources. This could lead to a
weaker sales performance than the market, in S&P's view. Its
contracted sales declined 27%-30% year on year in September-October
2022 while the industry declines were 25%-29%.
S&P said, "For 2023-2024, we expect a further decline in contracted
sales of 4%-5% per year to RMB320 billion-RMB340 billion. This
could raise leverage, as measured by the debt-to-EBITDA ratio, to
5.8x-5.9x. We now assess leverage to be highly leveraged, from
aggressive previously. However, in our assessment, such a level of
sales could still help Country Garden meet its construction
expenditure of about RMB200 billion annually.
"While a scaling back of land acquisitions can help preserve
liquidity, it could also undermine the competitive advantage of
Country Garden. During the first nine months in 2022, the company
only spent RMB6 billion on land acquisitions. This was a drastic
drop from RMB133 billion during the same period in 2021. If this
pace of reduction continues, we estimate its land reserves will
shorten to below two years by 2024, from over three years in 2022.
"The negative rating outlook prior to the rating withdrawal
reflects our view that Country Garden's liquidity buffer could
narrow further. This is due to weaker sales and sizable
construction expenditure over the next 12 months. The company's
leverage could also rise further amid declining sales and margins.
"We may downgrade Country Garden if its liquidity deteriorates due
to weaker sales, tighter restrictions on the accessibility of cash,
or a deterioration in external funding access.
"We could revise the outlook to stable if the sales and funding
channels of Country Garden improve over the next 12 months."
ESG credit indicators: E-3, S-3, G-3
HUADI INTERNATIONAL: Sinks 91% After Selling Shares at a Discount
-----------------------------------------------------------------
Bloomberg News reports that a little-known Chinese pipemaker erased
all of its dizzying rally from last week after announcing plans to
sell 1 million shares at a massive discount to a pair of
institutional investors.
According to Bloomberg, Huadi International Group sank 91% on Nov.
7 for its biggest drop on record, after an agreement to sell its
stock to investors at $25 per share -- an 86% discount to Nov. 4's
closing price. This comes after the stock skyrocketed 716% last
week amid volatile trading.
The company erased last week's rally on news of the offering,
falling to close at $15.81, Bloomberg says. Shares closed Nov. 4 at
$180. The stock sale will raise the same amount of cash as Huadi's
January 2021 initial public offering. Univest Securities served as
placement agent for Nov. 7's registered direct offering.
The Wenzhou, China-based company that makes stainless steel pipes
and tubes went public in 2021 without much fanfare, raising $25
million in capital, Bloomberg recounts. Since then it had surged
about 2,150% through Nov. 4's close to give it a market value of
more than $2.3 billion. Nov. 4's plunge takes Huadi's market cap to
about $209 million.
Last week's rally was punctuated by a jump on Nov. 3 that more than
tripled its value on a plan to enter the clean energy space. The
company doesn't have any coverage among Wall Street analysts,
according to Bloomberg data.
China stocks listed in the US broadly rallied last week on optimism
over reopening hopes and progress in the American audit inspection
of firms. Bloomberg notes that Huadi is not the only China or Hong
Kong-based stock making a sharp move Nov. 7.
GigaCloud Technology, a Hong Kong-based online marketplace
provider, surged 27% on Nov. 7, with more than 32 million shares
traded, the report adds.
Huadi International Group Co., Ltd. develops, manufactures,
markets, and sells industrial stainless steel seamless pipes,
tubes, bars, and plates in the People's Republic of China. The
company's products are used in oil and gas transmission, chemistry
engineering, food processing, medical devices, aeronautics and
astronautics, boiler, irrigation works construction, electricity,
automobile, naval architecture, paper mill, and mechanical
industries. It also exports its products to 20 countries, including
the United States, Mexico, Thailand, Australia, Argentina, India,
the Philippines, the United Arab Emirates, Taiwan, Canada, and
internationally.
=================
H O N G K O N G
=================
[*] HONG KONG: No. of Suspended HKEX-Listed Firms Up 10%
--------------------------------------------------------
The Standard reports that the number of Hong Kong-listed companies
that were suspended for more than three months rose by 10 percent
to 123 for the year ended August 2022 while the number that resumed
trading rose by 24 percent to 31, according to a study by Grant
Thornton.
Auditors triggered the most cases for suspensions in the past three
consecutive years, and the proportion increased from 50 percent to
58 percent, which may be due to the recent expansion of the
functions of the Accounting and Financial Reporting Council, The
Standard relays.
It demonstrated greater scrutiny on the listed companies and their
auditors, the research showed, and the major concern was the
overstatement of assets.
Besides, about 21 percent of prolonged suspensions were caused by
shareholders or management of the companies, because of the
misconduct of directors - most of them changed their directors
within six months, according to The Standard.
The Standard relates that Grant Thornton's national leader of
forensic and investigation services Barry Tong Biu said the Covid
pandemic had played a role in the increasing number of suspensions
over the past three years.
Companies based in the mainland are especially vulnerable as
auditors face travel restrictions which could lead to delays in
filing annual reports, according to the research.
Director of forensic and investigation services Kenneth Lam Siu-kei
said that companies planning to resume trading still face several
major challenges including the publication of outstanding financial
statements, issuing forensic review reports and addressing any
issues that arose from them, The Standard relays.
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I N D I A
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AGM AUTO PRIVATE: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: AGM Auto Private Limited
2009, Sector-21
Panchkula, Haryana 134109
Insolvency Commencement Date: November 1, 2022
Court: National Company Law Tribunal, Chandigarh Bench
Estimated date of closure of
insolvency resolution process: April 25, 2023
Insolvency professional: Anil Kumar Singhal
Interim Resolution
Professional: Anil Kumar Singhal
A2/10, DLF, Sector-11
Faridabad, Haryana 121001
E-mail: anilsinghalca@gmail.com
cirp.agmauto@gmail.com
Last date for
submission of claims: November 15, 2022
ASHA ENTERPRISE: CARE Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Asha
Enterprise Siliguri (AE) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.65 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 0.30 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 October 7,
2021, placed the rating(s) of AE under the 'issuer non-cooperating'
category as AE 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. AE continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
August 23, 2022, September 2, 2022, September 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).
Asha Enterprise was established as a partnership firm in February
2015 by Mr. Kedar Somani, Mr. Bineet Somani, Mr. Amit Somani and
Mrs. Asha Somani. AE runs a hotel (Hotel Saffrom Crest) in
Siliguri, a famous tourist destination of West Bengal. The hotel
consists of 61 rooms, food & beverages outlets, banquet halls,
conferencing facilities and other recreational facilities. The
hotel spread with an area of 76 katthas (basement+ 6 floors)
equipped with state of the art technology and well qualified &
experienced staffs. The firm has commenced operations from January
2018 and the average occupancy rate was around 80% during FY19.
ASHTAVINAYAK BUILDERS: CARE Keeps C Debt Rating in Not Cooperating
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of
Ashtavinayak Builders & Developers (ABD) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.50 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 September 9,
2021, placed the rating(s) of ABD under the 'issuer
non-cooperating' category as ABD 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. ABD
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated July 26, 2022, August 5, 2022, August 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).
Surat-based (Gujarat) ABD was established as a partnership firm in
April 25, 2014. Partners of ABD through their associate concerns in
past have executed various projects regarding residential and
commercial projects. ABD is engaged in the real estate development
and is currently executing its residential project named 'River
Marvella' at Surat, Gujarat. It comprises 2 blocks i.e. block A and
block B which consists of 44 flats divided into two wings i.e. wing
A and wing B only. Wing A comprises 22 flats of 1700 sq feet. Wing
B comprises 22 flats of area 1545 sq feet.
BALDEV KRISHAN: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Baldev
Krishan Memorial Charitable Society (BKMCS) continues to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.60 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 October 14,
2021, placed the rating(s) of BKMCS under the 'issuer
non-cooperating' category as BKMCS 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. BKMCS continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated August 30, 2022, September 9,
2022, September 19, 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 entity was established by the name of 'ISF College of Pharmacy
Managing Committee' in 1992 by Mr. Baldev Singh. Later on, after
the death of Mr. Baldev Singh, the name was changed to Baldev
Krishan Memorial Charitable Society (BKM) which got registered
under the Society registration Act-1860, in Feb-2010. The society
is currently being managed by Mr. Anoop Garg and his wife Mrs.
Rinkle Garg with an objective to provide higher education in the
field of dentistry. The trust has established BRS Institute of
Medical Sciences in 1992, affiliated to Pt. B.D.S University of
Health Science, Rohtak and offers courses of BDS (Bachelor in
Dental Surgery) and MDS (Master of Dental Surgery) under it.
BAYANTREE INFRADEVELOPERS: Insolvency Resolution Case Summary
-------------------------------------------------------------
Debtor: Bayantree Infradevelopers Private Limited
H.No. 310, Plot No. 4, Top Floor
Vardhaman Taru Plaza, Block-CU
Local Shopping Center, Pitampura
North West Delhi, Delhi 110034
Insolvency Commencement Date: November 1, 2022
Court: National Company Law Tribunal, Delhi Bench
Estimated date of closure of
insolvency resolution process: April 19, 2023
Insolvency professional: Devendra Umrao
Interim Resolution
Professional: Devendra Umrao
B-43A, First Floor
Kalkaji, New Delhi
National Capital Territory of Delhi
110019
E-mail: devumraoibc@gmail.com
- and -
Tower A, Ground Floor, Unit No. 14
The Corenthum, Sector 62
Noida 201301
U.P.
E-mail: bayantree.cirp@gmail.com
Last date for
submission of claims: November 15, 2022
BISI ENGINEERING: CARE Keeps B- Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Bisi
Engineering (BE) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 13,
2021, placed the rating(s) of BE under the 'issuer non-cooperating'
category as BE 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. BE continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
August 29, 2022, September 08, 2022, September 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).
Bisi Engineering (BE) was established as a proprietorship firm in
2010 by Mr. Sukanta Bisi. The firm has been engaged in repair &
maintenance of erector and special class boiler with its registered
office located at Sambalpur, Odisha. The firm has started
commercial operations from August, 2010 onwards.
BRAHMAPUTRA TMT BARS: Insolvency Resolution Process Case Summary
----------------------------------------------------------------
Debtor: Brahmaputra TMT Bars Private Limited
Room No. 19, 2nd floor Vrindavan Market
S J Road, Athgaon Guwahati 781001
Assam
Insolvency Commencement Date: November 4, 2022
Court: National Company Law Tribunal, Guwahati Bench
Estimated date of closure of
insolvency resolution process: April 26, 2023
Insolvency professional: Manish Agarwalla
Interim Resolution
Professional: Manish Agarwalla
Room No. 9, 5th Floor
Parmeshari Building, Chatribari
Guwahati 781001
E-mail: camanishagarwalla@gmail.com
cirp.btbpl@gmail.com
Last date for
submission of claims: November 18, 2022
D S DEVELOPERS: CARE Keeps B- Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of D S
Developers (DSD) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated September 13,
2021, placed the rating(s) of DSD under the 'issuer
non-cooperating' category as DSD 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. DSD
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated July 30, 2022, August 9, 2022, August 19, 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).
Jodhpur (Rajasthan) based, D S Developers (DSD) was formed as a
partnership concern in 2012 by Mr. Rajesh Jajra, Mr. Suresh Jajra,
Mr. Naresh Jajra, Mr. Vijay Kumar Agarwal, Maharaja Dalip Singh,
Mr. R.K Veer Vikram Singh, Mr. Sunil Bhandari and Smt. Neelam Vyas
as a partners. However, in 2014, last four partners retired and the
remaining continued as partners with sharing equal profit & loss of
the firm. DSD is engaged in construction of residential real estate
projects.
DABANG METAL: CARE Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Dabang
Metal Industries (DMI) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.95 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 September 27,
2021, placed the rating(s) of DMI under the 'issuer
non-cooperating' category as DMI 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. DMI
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated August 13, 2022, August 23, 2022, September 2,
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).
Kotdwar (Uttrakhand) based, Dabang Metal Industries (DMI) was
established as partnership firm in February 2012 by Mr. Vishal
Tayal, Mr. Mahender Jain, Mr. Sachin Gupta, Mr. Sharad Alan and Mr.
Sunil Gupta. The firm commenced its commercial operation from
February, 2013. The firm is engaged in drawing of copper wires of
thickness of 1 mm to 6 mm which finds its application in electrical
cable industry.
DASHMESH RICE: CARE Keeps C Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Dashmesh
Rice Mills (Tarn Taran) (DRMT) 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 October 14,
2021, placed the rating(s) of DRMT under the 'issuer
non-cooperating' category as DRMT 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. DRMT
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated August 30, 2022, September 9, 2022, September
19, 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).
DRM was established in 2001 as a partnership firm and is currently
being managed by Mr Prem Singh, Mr Dalip Singh and Mr Harjit Singh.
The firm is engaged in the processing of paddy at its manufacturing
facility located at Tarn Taran, Punjab.
DHURIA RICE: CARE Keeps C Debt Rating in Not Cooperating
--------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Dhuria Rice
Mill (DRM) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.50 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 October 18,
2021, placed the rating(s) of DRM under the 'issuer
non-cooperating' category as DRM 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. DRM
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated September 3, 2022, September 13, 2022, September
23, 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).
Dhuria Rice Mills (DRM) was established in 1978 as a partnership
firm and is currently being managed by Mr Ashok Kumar and Mr Arun
Kumar sharing profit and losses equally. DRM is engaged in
processing of paddy at its manufacturing unit located at Fazilka,
Punjab.
DROPBASE SOFTWARE: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Dropbase Software Private Limited
Room 1, Basement, Shop No. S-40
JDA Complex, Front of Post Office
Murlipura Scheme, Jaipur
RJ 302302
IN
Insolvency Commencement Date: October 20, 2022
Court: National Company Law Tribunal, Jaipur Bench
Estimated date of closure of
insolvency resolution process: April 17, 2023
Insolvency professional: Mr. Rajneesh Sharma
Interim Resolution
Professional: Mr. Rajneesh Sharma
Flat no. 101, Sanskar Apartment
No. 1, Navaratan Complex
Udaipur (Rajasthan) 313001
E-mail: rajneeshsharmacs@gmail.com
cirp.dropbase@gmail.com
Last date for
submission of claims: November 14, 2022
GEPONG: CARE Lowers Rating on INR6.30cr LT Loan to B
----------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Gepong (GP), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.30 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B+; Stable
Short Term Bank 5.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 14,
2021, placed the rating(s) of GP under the 'issuer non-cooperating'
category as GP 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. GP continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
August 30, 2022, September 9, 2022, September 19, 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 GP have been revised
on account of non-availability of requisite information.
Gepong was established in the year 1999 as a proprietorship entity.
The entity was promoted by Mr. Nabam Tagi based out of Arunachal
Pradesh. Since its inception, the entity has been engaged in civil
construction activities in the segment of roads and other
infrastructure projects. The entity participates in tenders and
executes orders for the entities like North Eastern Indian Railways
and Arunachal Pradesh Government departments.
GMR HYDERABAD: CARE Reaffirms D Rating on INR1,112.19cr LT Loan
---------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of GMR
Hyderabad Vijayawada Expressways Private Limited (GHVEPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 1,112.19 CARE D Reaffirmed
Detailed rationale and key rating drivers
The rating assigned to the bank facilities of GHVEPL continues to
factor in the stretched liquidity position due to lower toll
revenue thereby resulting in delays in debt servicing obligation.
Rating sensitivities
Positive factors – Factors that could lead to positive rating
action/upgrade:
* Improvement in liquidity profile and regularization of debt
servicing.
Detailed description of the key rating drivers
Key rating weaknesses
* Stretched liquidity with lower toll collection: The project
stretch traverses through Hyderabad, Suryapet and Vijayawada. These
stretches have witnessed subdued toll collection as a result of
drop in commercial traffic due to bifurcation of the state of
Andhra Pradesh, ban on sand mining in the region and low cement
trucks traffic. The toll collections during FY22 stood at INR99.89
lakh per day (FY21 – INR83.15 lakh per day). The collections are
lower by ~50% vis-à-vis envisaged as per base case plan.
Consequent to low traffic on the stretch and lower toll revenue,
cashflow position has been strained resulting in delays in debt
servicing.
Key rating strengths
* Claims made by GHVEPL for compensation due to change in law: The
company has been incurring losses since the commencement of
commercial operations since FY13 due to loss of revenue arising
because of drop in commercial traffic post. The company has claimed
the losses as part of change in law. The Concession Agreement
provides for recovery of losses suffered due to change in law and
hence, as on March 31, 2020, GHVEPL has claimed compensation of
INR1,676 crore from National Highway Authority of India (NHAI). The
court has ordered for claim of award from NHAI as it falls under
change in law and appointed arbitrator for quantification of the
claim. As per same, the claim has been quantified at INR1672 crore
(up to March 2020). In May 2022, NHAI has filed application against
the claim and the matter is subjudiced.
Liquidity: Poor
Liquidity is marked by cashflow mismatch due to low toll collection
and high debt servicing obligation. Hence, there are delays in debt
servicing obligation.
GMR Hyderabad Vijayawada Expressways Pvt. Ltd. (GHVEPL) is a
Special Purpose Vehicle (SPV), incorporated on June 11, 2009,
promoted by GMR Highways Limited (GHL; 49% stake), GMR
Infrastructure Limited (GIL; 41% stake) and Punj Lloyd Limited
(PLL; 10% stake). GHVEPL was formed for construction of four laning
of 181.5 km of Hyderabad Vijayawada section of NH-9 starting from
km 40 to km 221.5, on Build Operate and Transfer (BOT) - Toll
basis, awarded through competitive bidding by National Highways
Authority of India (NHAI). The company commenced toll operations
from December 21, 2012. The project road is a part of NH – 9
linking Hyderabad and Vijayawada in the states of Andhra Pradesh
and Telangana. GHVEPL is required to share 38% of its revenue with
NHAI as per Concession Agreement.
GMR RAJAHMUNDRY: CARE Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of GMR
Rajahmundry Energy Limited (GREL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 2,419.41 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 138.02 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated August 25,
2021, placed the rating(s) of GREL under the 'issuer
non-cooperating' category as GREL 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. GREL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated July 11, 2022, July 21, 2022, July 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).
Incorporated in November 2009, GMR Rajahmundry Energy Limited
(GREL) is a Special Purpose Vehicle (SPV) promoted by
GMR Generation Assets Limited to set up a 768 MW (2x384 MW)
gas-based Combined Cycle Power Plant (CCPP) at Vemagiri, Dist. East
Godavari, Andhra Pradesh. GREL has been set up adjacent to the
existing 389 MW gas-based CCPP of GMR Vemagiri Power Generation
Limited, the project achieved Commercial Operations Date (COD) on
October 22, 2015.
GVK GAUTAMI: CARE Keeps D Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of GVK Gautami
Power Ltd. (GGPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 1,009.75 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed rationale and key rating drivers
CARE had, vide its press release dated September 13, 2021, placed
the ratings of GGPL under the 'issuer non-cooperating' category as
GGPL had failed to provide information for monitoring of the rating
as agreed to in its Rating Agreement. GGPL continues to be
non-cooperative despite repeated requests for submission of
information through emails, phone calls and a email dated August
14, 2022, August 19, 2022 and October 3, 2022.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Detailed description of the key rating drivers
At the time of last rating on September 13, 2021 the following were
the rating strengths and weaknesses (updated for the
information available from Registrar of Companies):
Key rating weaknesses
* Stretched liquidity position with delay in debt servicing: The
liquidity position of the company continued to remain stretched on
an account of plant being non- operational since 2016 resulting in
delays in debt servicing as per Audit Report FY21.
Key rating strengths
* Experience of group in power sector: GGPL is a part of the
Hyderabad-based GVK group, which is one of the first Independent
Power Plant developers in the country. The GVK group through GVK
Power & Infrastructure Limited and its subsidiaries has substantial
ownership interest in power generating assets and is also engaged
in the building and developing of road projects, providing
infrastructure facilities, exploration of oil & natural gas,
operations, maintenance and development (OMD) of airport projects
and exploration of coal mines. The group has 15 assets in its
portfolio, out of which, seven assets are in power, four in
highways, two are in mining and two in airports.
GVK Gautami Power Ltd. is a subsidiary of GVK Energy Limited (GEL),
which in turn is the subsidiary of GVK Power & Infrastructure
Limited the flagship company of the GVK group. The company set up a
464 MW gas-based Combined Cycle Power Plant (CCPP), located in East
Godavari District of Andhra Pradesh, comprising two gas turbine
generators and one steam turbine generator.
KANISH SPINNING: CARE Withdraws B- Long Term Debt Rating
--------------------------------------------------------
CARE has reaffirmed and withdrawn the outstanding rating CARE B-;
Stable; Issuer Not Cooperating assigned to the bank facilities of
Kanish Spinning Mill (KSM) to with immediate effect.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank - Rating continues to remain
Facilities under ISSUER NOT COOPERATING
category; Reaffirmed at CARE B-;
ISSUER NOT COOPERATING and
Withdrawn
The ratings remained constrained on account of the firm's moderate
capital structure, highly fragmented industry and seasonal nature
of business as well as the partnership constitution of the firm.
The ratings however, derives strength from increase in scale of
operations, satisfactory profitability margin, comfortable debt
coverage as well as long track record the firm and the decade long
experience of the partners in the textile industry. The above
action has been taken at the request of KSM and 'No Objection
Certificate' received from the bank that has extended the
facilities rated by CARE.
Detailed description of the key rating drivers
At the time of last rating on January 5, 2022 the following were
the rating strengths and weaknesses (updated for the information
available from firm:
Key Rating Weaknesses
* Moderate capital structure: The firm's capital structure has
deteriorated due to increase in debt in form of working capital
borrowing, but remained moderate marked by Overall gearing ratio of
2.06x as on March 31, 2022 as compared to 1.08x as on March 31,
2021.
* Highly fragmented industry and seasonal nature of business: The
cotton ginning and spinning industry is highly fragmented in nature
with several organized and unorganized players. Prices of raw
cotton are highly volatile in nature and depend upon the factors
like area under cultivation, crop yield, international
demand-supply scenario, export quota decided by the government and
inventory carry forward of the previous year. Spinning operators
procure raw materials in bulk quantities to avail discount from
suppliers to mitigate the seasonality associated with availability
of cotton resulting in higher inventory holding period. Further,
the profitability margins of the firm are susceptible to
fluctuation in raw material prices.
* Constitution of the entity as partnership firm: Constitution as a
partnership has the inherent risk of possibility of withdrawal of
the capital at the time of personal contingency which can adversely
affect its capital structure. Furthermore, partnership firms have
restricted access to external borrowings as credit worthiness of
the partners would be key factors affecting credit decision for the
lenders.
Key rating strengths
* Long track record of the firm and experience of the partners for
more than one decade in textile industry Kanish: Spinning Mill
(KSM) was established in 2007 as a partnership firm by Mr. K.
Chandrasekaran and Mrs. K. Shanthi. Mr. K. Chandrasekaran is a
graduate by qualification and has more than 13 years of experience
in textile industry. Further, Mrs. K. Shanthi is a qualified
graduate and has experience of more than 11 years in textile
industry. Due to long experience of the partners, they were able to
establish long term relationship with clientele which will help to
developing their business in near future.
* Increase in scale of operations with satisfactory profitability
margins and moderate debt coverage indicators: The scale of
operation of firm increased albeit remained small marked by Total
operating income of INR56.62 crores in FY22 (Provisional) as
against INR32.29 Crores in FY21. Consequently, the firm's net
profitability also improved and stood at INR2.61 crore in FY22
compared to INR1.19 crore in FY21. The profitability margins of the
firm, remained satisfactory during the review period marked by
PBILDT margin of 15.37% in FY22 increased from 10.14% in FY21 to
due to decrease in employee costs as well as selling expenses in
FY22. Resultantly, The PAT margin increased from 3.68% in FY21 to
4.61% in FY22. As a result of increase in profitability, the debt
coverage indicators of the firm also improved and remained moderate
during review period marked by PBILDT interest coverage ratio of
4.82x in FY22(Provisional) improved from 3.74x in FY21.
Tamil Nadu based, Kanish Spinning Mill (KSM) was established in
2007 as a partnership firm, by Mr. K. Chandrasekaran and Mrs. K.
Shanthi. The firm is engaged in manufacturing of cotton yarn at its
manufacturing unit located at Vellakovil, Tamil Nadu.
KGN DECCAN ENGINEERING: Insolvency Resolution Process Case Summary
------------------------------------------------------------------
Debtor: K.G.N. Deccan Engineering Industries Private Limited
Plot No. 282, Ph-III
IP Pashamylaram Village
Sangareddy, Medak
Telangana 502205
Insolvency Commencement Date: October 31, 2022
Court: National Company Law Tribunal, Hyderabad Bench
Estimated date of closure of
insolvency resolution process: April 29, 2023
(180 days from commencement)
Insolvency professional: Maruti Venkata Subbarao Poluri
Interim Resolution
Professional: Maruti Venkata Subbarao Poluri
1-7-12, Flat No. 408
Chippendale Apartments
Golkonda X Roads, Musheerabad
Back Side N B K Estate
Hyderabad, Telangana 500020
E-mail: cssubbarao@gmail.com
- and -
1-10-17, 301 Chapas Prashanthi Niketan
St. No. 4, Ashok Nagar
Hyderabad 500020
E-mail: ip.kgndeccaneng@gmail.com
Last date for
submission of claims: November 14, 2022
M J HOME: CARE Keeps B- Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of M J Home
Furnishing (MJHF) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 4.05 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 19,
2021, placed the rating(s) of MJHF under the 'issuer
non-cooperating' category as MJHF 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. MJHF
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated September 4, 2022, September 14, 2022, September
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).
Haryana based, M J Home Furnishing was incorporated on March 28,
2015. However, the commercial operations commenced in October, 2018
and are currently being managed by Mr. Hemant Jain, Mr. Shubham
Jain and Mrs. Asha Rani Jain as its partners. Prior to June-19, the
firm was engaged in trading of thread like polyester yarn. However,
the firm has setup the manufacturing unit for manufacturing of grey
fabric which finds its end use in wide width bed sheets.
MAINAK AGRO: CARE Lowers Rating on INR4.54cr LT Loan to B-
----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Mainak Agro Food Product (MAFP), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 4.54 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated September 21,
2021, placed the rating(s) of MAFP under the 'issuer
non-cooperating' category as MAFP 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. MAFP
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated August 7, 2022, August 17, 2022, August 27,
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 MAFP have been
revised on account of non-availability of requisite information.
Mainak Agro Food Product (MAFP) was set up as a partnership firm in
May 2007. Since its inception, the firm has been engaged in milling
and processing of parboiled and non-parboiled rice. The
manufacturing plant of the firm is located at Burdwan, West Bengal
with an aggregate installed capacity of 27000 (Parboiled rice -
21600 MTPA & Non boiled rice - 5400 MTPA) metric ton per annum.
Apart from own rice milling, the firm also does custom milling for
government of West Bengal.
NAVEEN DISTRIBUTORS: CARE Lowers Rating on INR4.97cr Loan to B
--------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Naveen Distributors (ND), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 4.97 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B+; Stable
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated September 13,
2021, placed the rating(s) of ND under the 'issuer non-cooperating'
category as ND 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. ND continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
July 30, 2022, August 9, 2022, August 19, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The rating has been revised on account of non-availability of
requisite information
ND was formed by Mr. Jitendra Bhandari in 1988 as a proprietorship
concern. ND is authorized distributor of JK Cement Ltd for grey
cement, white cement and wall putty etc and supplies to around 100
sub dealers of Jodhpur and Jaisalmer. It has also dealership of
Apollo Tyres Ltd. The firm also operates two solar power plants
with a combined capacity of 1.7 MW and supplies power to respective
DISCOMs.
PRITHVI ENERGY: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Prithvi Energy Limited
CF-361, Salt Lake City
Sector-I, Kolkata 700064
West Bengal, India
Insolvency Commencement Date: November 1, 2022
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: April 3, 2023
Insolvency professional: Mr. Pinaki Sircar
Interim Resolution
Professional: Mr. Pinaki Sircar
31/7, N.C. Chowdhury Road
Kolkata 700042
West Bengal
E-mail: pinaki_sircar@hotmail.com
- and -
C/o LSI Resolution Pvt Ltd
Sagar Trade Cube 2nd floor
104 S.P. Mukherjee
Kolkata 700026
West Bengal
E-mail: cirp.pel@gmail.com
Last date for
submission of claims: November 15, 2022
R V REALTY: CARE Keeps D Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of R V Realty
(RVR) continues 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
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 18,
2021, placed the rating(s) of RVR under the 'issuer
non-cooperating' category as RVR 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. RVR
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated September 3, 2022, September 13, 2022, September
23, 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).
RV Realty is a special purpose vehicle (SPV) formed as a
partnership entity between the Pune based Vastushodh Group and the
Pune based Reelicon Group. The Reelicon group is a Pune based real
estate engaged mainly in the construction of residential projects.
The firm was promoted by 3 entrepreneurs in 1998, Mr. Anil Salunke,
Mr. Milind Jadhav and Mr. Dhananjay Nimbalkar each having 15 years
of experience.
RAJENDRA RICE: CARE Keeps C Debt Ratings in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Rajendra
Rice & General Mills (RRGM) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.50 CARE C; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Long Term/ 0.50 CARE C/CARE A4; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 19,
2021, placed the rating(s) of RRGM under the 'issuer
non-cooperating' category as RRGM 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. RRGM
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated September 4, 2022, September 14, 2022, September
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).
Tohana-based, (Haryana) Rajendra Rice & General Mills (RRGM) was
established in 1986 as partnership firm by Mr Avtar Singh and his
sons, Mr Tarsem Singh and Ms Surinder Kaur sharing profit and
losses equally. RRGM is engaged in milling and processing of
basmati and Non-Basmati rice. The firm is also engaged in trading
of basmati rice.
RAMANI ICECREAM: CARE Hikes Rating on INR50.01cr LT Loan to B
-------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Ramani Icecream Company Limited (RICL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 50.01 CARE B; Stable Revised from
Facilities CARE D; Stable outlook assigned
Detailed rationale and key rating drivers
The revision in the rating assigned to the bank facilities of RICL
takes into consideration its track record of timely servicing of
debt obligations for a period of more than 90 days supported by
improvement in its financial performance with profitable operation
in Q1FY23 (Q1FY23 refers to the period April 1 to June 30).
The rating, however, continues to remain constrained on account of
modest scale of operations with net loss in FY22 albeit sharp
recovery in Q1FY23, deterioration in capital structure with losses
and weak debt coverage indicators and stretched liquidity. The
rating, further, considers seasonal demand for ice-creams leads to
working capital intensive operations, susceptibility of its
profitability to volatility in raw material prices and intense
competition in the industry.
The ratings, however, continue to derive strength from experienced
promoters with its established track record of operations in the
ice-cream manufacturing business and established presence of Top 'N
Town brand in Madhya Pradesh.
Rating sensitivities
Positive factors – Factors that could lead to positive rating
action/upgrade:
* Growth in scale of operations with total operating income (TOI)
at envisaged level while achieving PBILDT margin of around 10% on
sustained basis.
* Managing working capital efficiently with improvement in working
capital cycle to less than 150 days on sustained basis.
* Improvement in interest coverage above 2.5 times and Total debt
to PBILDT of below 5 times on sustained basis.
Negative factors – Factors that could lead to negative rating
action/downgrade:
* Inability to improve profitability leading to PBILDT margin below
5%.
* Elongation of operating cycle beyond 300 days.
* Deterioration in capital structure marked by overall gearing of
above 4 times.
Detailed description of the key rating drivers
Key rating weaknesses
* Modest scale of operations with net loss in FY22: RICL's total
operating income (TOI) had seen a growth of 13% on Y-o-Y basis and
remained modest at INR115.80 crore in FY22 on account of relief
after COVID however, still lower by 60%-65% on y-o-y basis when
compared to pre COVID levels mainly due to continued adverse impact
of Covid-19 on the overall ice cream industry. However, the
company's PBILDT margins decreased to 0.94% in FY22 as compared to
5.26% in FY21 on the back of hike in input prices, freight cost and
decrease in TOI as against relatively sticky fixed costs. As a
result, the company reported net loss of INR17.63 crore in FY22
[Net loss in FY21: INR17.47 crore].
* Deterioration in capital structure with losses and weak debt
coverage indicators: RICL's capital structure deteriorated over the
previous year and remained leveraged marked by overall gearing of
3.82 times as on March 31, 2022, on account of erosion of networth
will losses at PAT level. Promoters has arranged funds in form of
unlisted redeemable optionally convertible unsecured debentures
(OCDs) having rate of interest (ROI) of 0.01% p.a. for tenor of 15
years (as per subscription agreement dated December 25, 2020). The
said issue (comprised of 25 lakh OCDs having face value of INR100
each) were issued with an aim to organize funds with the company to
service its existing bank debt obligations and general corporate
purpose and lower net worth base after absorbing net losses during
FY21-22. The debt coverage indicators of the company significantly
deteriorated and remained weak marked by below unity interest
coverage ratio of 0.17 times (P.Y.: 0.58 times). Funds released
from working capital were used to meet losses in FY22.
* Seasonal demand for ice-creams leads to working capital intensive
operations: The sales of the company are mainly concentrated during
the summer period, reflecting the seasonality of the business.
Hence, the working capital intensity is at its peak in the last two
quarters of the financial year as it has to accumulate raw material
inventory for the upcoming season i.e. 1st quarter of the next
financial year. The business is also susceptible to changing tastes
of consumers. As such, company has to constantly invest/innovate to
come up with new products, flavours etc. in line with the changes
in the industry as well as changing customer preferences.
* Susceptibility to volatility in raw material prices: Raw material
cost (including packing and freight) is the biggest operating cost
in ice cream manufacturing. The major raw materials for RICL
include skimmed milk powder, milk, butter and sugar. SMP is
procured from the dairies in Madhya Pradesh and Uttar Pradesh.
Other ingredients like refined sugar, colors, flavors, dry fruits
and fruits are procured from the local market. RICL focuses on
procuring the major SMP requirement (about 60-70% depending on the
current and expected price of SMP) for the upcoming summer season
(as they have proper storage facility available for the same)
during October to March to avail the benefit of lower raw material
prices and uninterrupted supply during summer.
* Healthy growth prospects for the ice cream industry albeit high
competition from nationally recognized brands and growing presence
of international brands: Indian ice cream industry had faced a
complete washout last year due to Covid-19 disruptions, however, it
has made a strong comeback in FY22 on the back of positive consumer
sentiment and expected to retain the same momentum. Top Indian ice
cream companies have witnessed a sales growth of 30-40% in FY22
over the previous year. Same is expected to reach precovid levels.
Moreover, growing demand for natural and traditional flavoured ice
cream, coupled with increasing penetration of international brands,
improvement in cold chain infrastructure and rapid urbanization is
expected to drive growth in India ice cream market.
RICL faces intense competition from various national and regional
brands like Amul, Kwality Walls, Naturals, Mother Dairy, Vadilal,
Havmor and Dinshaw's. In addition, RICL also faces competition from
local unorganized ice-cream manufactures. Moreover, changing
consumer preferences especially growing inclination towards healthy
and premium options have resulted in growing presence of
international brands in India.
Key rating strengths
* Track record of timely servicing of debt obligations for a period
of more than 90 days supported by recovery in Q1FY23: As per bank
statement received from the company of cash credits and term loan
statement of HDFC Bank and ICICI Bank for past 12 months ended
September 2022, the company has not delayed /defaulted in repayment
of term loan or no overdrawl in cash credit account since past six
months. The same was supported by increase in demand from March
2022 onwards and recovery in Q1FY23 wherein it reported TOI of
INR117 crore with a PBILDT of INR16.35 crore as compared to TOI of
INR33.69 crore with PBILDT of INR5.67 crore in Q1FY22. Normally,
Ice cream manufacturers have Q1 as main season while Q2 and Q3
being the slack season (monsoon and winter) leading to marginal
profit of loss in those quarter. Q4 mainly shows recovery in demand
with marriage season and start of summer in March.
* Experienced promoter group: In 1970, the first ice cream parlor
of 'Top 'N Town' was started by Late Mr. Balchand Kukreja, in
Bhopal. Currently, the entire business operations are looked after
by the third generation of his family. Mr. Arun Hariramani,
Director, looks after the overall operations of the company. He is
a management graduate with an experience of more than two and a
half decades in the ice cream industry. He is well supported by his
brother, Mr. Vijay Hariramani, who looks after finance and public
relations. Besides RICL, the promoters of Ramani group have
presence in other businesses i.e. education, real estate and
bakery.
* Established operations with good brand recognition in Madhya
Pradesh along with other parts of Central India: RICL has an
operational track record of more than two and a half decades and
currently has presence across seven states in the country. RICL has
strong foothold in Madhya Pradesh and has good presence in
Maharashtra, Chhattisgarh and Orissa. It started to penetrate the
markets gradually in Uttar Pradesh, Rajasthan and Andhra Pradesh.
RICL sells ice cream under the brand name of 'Top 'N Town'. Madhya
Pradesh continued to contribute a major portion of RICL's gross
sales followed by Maharashtra and Chhattisgarh.
Liquidity position of RICL remained stretched marked by high
utilization of its working capital limits, negative cash accruals,
moderate net worth base and lower cash and bank balance. Working
capital utilization remained almost full for the past twelve months
ended September 30, 2022, owing to the high inventory and debtors
and working capital gap due to losses in past coupled with
reduction in working capital facilities. Further, cash and bank
balance remained low at INR1.36 crore (P.Y.: 0.97 crore). GCA
remained negative at INR5.25 crore (P.Y.: -4.33 crore) on the back
of higher losses during FY22. However, cashflow from operations
remains healthy mainly on account of significant decrease in
inventory with company buying inventory as per requirement and
avoiding stocking. Further, RICL's gross current assets days
remained elongated at 261 days in FY22. Further, cash accruals of
the company are expected to remain modest and tightly matched as
against scheduled debt repayment of around INR8 crore in FY23.
Ramani Icecream Company Limited (RICL; CIN: U15544MP1991PLC006612)
was established by Bhopal-based Ramani group. Initially constituted
as Ramani Icecream Company Private Limited in 1991, it was later
converted into a public limited company in 2011. Founded by Late
Mr. Balchand Kukreja, Ramani group is engaged in manufacturing of
ice cream since 1970. RICL sells its products under the brand name
of Top 'N Town which has dominant presence in Madhya Pradesh and
good presence in states like Maharashtra, Chhattisgarh, Orissa and
Uttar Pradesh. As on March 31, 2022, RICL had daily production
capacity of 1,25,000 MT for manufacturing of ice cream at its two
plants located in Bhopal, Madhya Pradesh and Durg, Chhattisgarh.
Presently, it is operating only Bhopal Plant as it has shut down
plant of Chhattisgarh temporarily during COVID-19 outbreak which is
still shut and is planning to reopen it in February 2023.
RLJ INFRACEMENT: CARE Keeps D Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of RLJ
Infracement Private Limited (RIPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated September 16,
2021, placed the rating(s) of RIPL under the 'issuer
non-cooperating' category as RIPL 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. RIPL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated August 2, 2022, August 12, 2022, August 22,
2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
West Bengal-based RLJ Infracement Pvt Ltd (RIPL) was incorporated
in March 2008 as RLJ Steel Plant Private Limited. Thereafter, it
changed its name to RLJ Infracement Private Limited in November
2013. Its commercial operations commenced in September 2014. It is
managed by Mr. Manmohan Agarwal, Mr. Rameshwar Singh and Mr. Sneh
Jain. The company is engaged in the manufacturing and trading of
cement. The grinding unit for manufacturing Portland Pozzolana
Cement (PPC) is located in Chunar, Mirzapur, Uttar Pradesh.
RUCHI WORLDWIDE: CARE Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Ruchi
Worldwide Limited (RWL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ 835.00 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated August 19,
2021, placed the rating(s) of RWL under the 'issuer
non-cooperating' category as RWL 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. RWL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated July 5, 2022, July 15, 2022, July 25, 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).
RWL is based of Indore, Madhya Pradesh and is an international
trading arm of the group and is involved in trading of various
agri-commodities including edible oil, raw cotton, castor seeds and
oil, coffee, grain and pulses. In pursuance of implementation of
Resolution Plan approved by the NCLT Ruchi Soya Industries Limited
has transferred its entire ownership in Ruchi Worldwide Limited
(52.48%) to Sanatan Multi Skill Development and Education Private
Limited on 27th March, 2020. The balance (47.52%) is held by Dinesh
Khandelwal (Trustee of Disha Foundation Trust).
SAGGI ELECTRIC: CARE Keeps B- Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Saggi
Electric Company (SEC) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Short Term Bank 0.10 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 October 18,
2021, placed the rating(s) of SEC under the 'issuer
non-cooperating' category as SEC 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. SEC
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated September 3, 2022, September 13, 2022, September
23, 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).
Saggi Electric Company (SEC) was established in 1980 as a
partnership firm and is currently being managed by Mr. Yashpal
Saggi, Mr. Sabodh Saggi and Asha Saggi. The firm is engaged in
providing services in the electrical sector such as engineering,
procurement and construction of electrical substation, transmission
and distribution transformers etc.
SAHARA HOSPITALITY: CARE Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Sahara
Hospitality Limited (SHL) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 506.74 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 20.00 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 September 2,
2021, placed the rating(s) of SHL under the 'issuer
non-cooperating' category as SHL 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. SHL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated July 19, 2022, July 29, 2022, August 8, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
SHL operates Sahara Star Hotel in Mumbai, the construction of which
was planned in three phases. Phase-I of the project was completed
in October 2007 wherein 223 rooms and 9 specialty restaurants
outlets where constructed. Phase II and III includes construction
of 209 rooms (186 rooms in phase-II and remaining in phase-III),
new restaurants, banquets and conference facilities, meeting rooms,
swimming pool (4100 sq ft), internationally branded salon, preview
theatre, gymnasium, health clubs, squash and badminton courts, a
5-floor tower with banquet hall, business centres, night clubs,
event hall (25 ft height), entertainment zone and pent house etc.
SANDIPAN PRAMANIK: CARE Lowers Rating on INR10cr LT Loan to B-
--------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Sandipan Pramanik (SP), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Short Term Bank 3.00 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 September 22,
2021, placed the rating(s) of SP under the 'issuer non-cooperating'
category as SP 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. SP continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
August 8, 2022, August 18, 2022, August 28, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of SP have been revised
on account of non-availability of requisite information.
Sandipan Pramanik (SP) was established in 1999 as a proprietorship
entity. The entity has been engaged in civil construction
activities in the segment like roads. SP secures work contracts
through tender and executes orders mainly for various departments
of West Bengal Government. The major clients of the entity include
reputed names like Public Works Department (PWD) West Bengal and
National Highway Corporation (NHC).
SAURASHTRA SPECIALITIES: Insolvency Resolution Process Case Summary
-------------------------------------------------------------------
Debtor: Saurashtra Specialities Private Limited
Survey No. 196, National Highway 8-B
Navagam, Anandpar
Rajkot 360003
Gujarat
Insolvency Commencement Date: November 2, 2022
Court: National Company Law Tribunal, Ahmedabad Bench
Estimated date of closure of
insolvency resolution process: April 30, 2023
(180 days from commencement)
Insolvency professional: Mr. Ashish Shah
Interim Resolution
Professional: Mr. Ashish Shah
402, 4th Floor, Shaival Plaza
Gujarat College Road
Ellisbridge, Ahmedabad 380006
E-mail: ashish@ravics.com
ssplirp@gmail.com
Last date for
submission of claims: November 14, 2022
SM1 CONSTRUCTION: CARE Lowers Rating on INR3cr LT Loan to B-
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of SM1
Construction (SC), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 3.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Short Term Bank 1.00 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 October 11,
2021, placed the rating(s) of SC under the 'issuer non-cooperating'
category as SC 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. SC continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
August 27, 2022, September 6, 2022, September 16, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings have been revised on account of non-availability of
requisite information.
SM1 Construction (SM1) is a Beed (Maharashtra) based,
proprietorship firm, established by Mr. Shahuraj Ramrao Dhoble in
2004. The entity executes civil structures related to electrical
substation.
SMT. SHAKUNTLA: CARE Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Smt.
Shakuntla Educational and Welfare Society (SSEWS) continue to
remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 148.62 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 50.00 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 October 19,
2021, placed the rating(s) of SSEWS under the 'issuer
non-cooperating' category as SSEWS 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. SSEWS continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated September 4, 2022, September
14, 2022, September 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).
Smt. Shakuntla Educational & Welfare Society (SSEWS) formed in the
year 1998 with the Registrar of Society under the society
registration act 1860 with the main objective of providing
education. The society is promoted by Mr. Suneel Galgotia, an
educationist from Uttar Pradesh with experience of more than three
decades in the education industry. SSEWS is currently operating two
management colleges as well as one engineering college in Noida
(Uttar Pradesh). Apart from these, the society is also operating
one educational university named Galgotia University. Galgotia
University came into existence after passing of Galgotias
University Act in 2011 by Government of Uttar Pradesh.
STERLING OIL: CARE Keeps D Debt Rating in Not Cooperating Category
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sterling
Oil Exploration & Energy Production Company Limited (SOEEPCL)
continues to remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 4,649.55 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 27,
2021, placed the rating(s) of SOEEPCL under the 'issuer
non-cooperating' category as SOEEPCL 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. SOEEPCL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated July 13, 2022, July 23, 2022,
August 2, 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).
SEEPCO is a step-down subsidiary of Sterling Oil Resources Limited
(SORL) rate 'CARE D; ISSUER NOT COOPERATING' and is into
development and production of crude oil in OML 143 block of
Nigeria. SORL is the energy arm of the erstwhile Sandesara Group
headed by Mr. Nitin Sandesara. The Sandesara group had harboured
diversified business interests ranging from Oil & Gas,
Pharmaceuticals, Healthcare Engineering, Infrastructure, Onshore
rigs, Seismic studies and Oil trading. However, the company
defaulted on about INR6000 crore loans between 2006 and 2011. In
October 2017, CBI filed two cases against Sandesara Group's
management under Prevention of Corruption Act and Prevention of
Money Laundering Act, 2002.
SUPERIOR FOOD: CARE Reaffirms C Rating on INR65cr LT Loan
---------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Superior Food Grains Private Limited (SFGPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 65.00 CARE C; Outlook: Negative
Facilities Reaffirmed
Short Term Bank
Facilities 2.00 CARE A4 Reaffirmed
Detailed rationale and key rating drivers
The ratings of SFGPL continue to remain constrained by the weak
financial risk profile, poor liquidity position of the company
along with cyclicality & agro-climatic risk associated with the
sugar industry. The ratings takes cognizance of no delays in
servicing of debt obligations related to working capital facilities
rated by CARE. The ratings, however, continue to derive strength
from experienced promoters, integrated business model and improved
profitability margins.
Rating sensitivities
Positive Factors - Factors that could lead to positive rating
action/upgrade:
* Sustainable and significant increase in income while maintaining
PBILDT margins above 13%.
* Significant improvement in the capital structure with overall
gearing improving to less than 3x.
* Significant improvement of debt coverage indicators marked by
total debt to GCA and interest coverage ratio of below 6.00x and
above 3.00x, respectively, on a sustained basis.
Negative Factors- Factors that could lead to negative rating
action/downgrade:
* Any delays in servicing of debt obligations with working capital
limits being overdue for more than 30 days.
* Significant reduction in profitability margins as marked by
PBILDT to below 8% on a sustained basis.
Outlook: Negative
The negative outlook is on account of expected continuance of the
weak liquidity position of the company. The outlook may be revised
to 'Stable' if the company is able to generate healthy cash
accruals and improve its liquidity position as well as debt
servicing track record.
Detailed description of the key rating drivers
Key Rating Weaknesses
* Weak albeit improving financial risk profile: The company
continues to have weak financial risk profile marked by high
overall gearing and moderate debt coverage metrics. The overall
gearing of the company though improved to 4.80x as on March 31,
2022, from 6.84x as on March 31, 2021 continued to remain high. The
interest coverage stood moderate at 1.87x as on March 31, 2022 (PY
1.88x). The total debt to GCA ratio also stood weak though slightly
improved to 8.81x as on March 31, 2022 (PY: 10.20x). However, the
capital structure of the company remains leveraged primarily due to
working capital intensive nature of operations and reliance on
external debt to meet working capital requirement. There are
instances of delays in the servicing of the repayment obligations
for the term loan availed from IREDA (not rated by CARE) by the
company reported in the audit report of FY22. However, the auditor
has also stated that the company had enough balance in the current
account to pay the amount due on due date, but the trustee bank
could transfer the amount after due date due to procedural issues.
* Cyclical & regulated nature of sugar business: Sugar industry is
cyclical in nature and vulnerable to the changes in government
policies. Sugar being an essential commodity is of high importance
in the Wholesale Price Index (WPI). While sugar prices are largely
market driven and dependent upon sugar production in the season
along with prevailing inventory levels, the government is empowered
to fix the price paid to cane farmers annually. Risk of downfall in
sugar prices is partially mitigated by the measure of Central
Government through fixation of Minimum Support Price (MSP) of
sugar. Any adverse changes in regulatory policy and government
support extended to sugar industry will remain a key monitorable.
Key Rating Strengths
* Experienced Promoters: SFGPL is managed by Mr. Rana Karan Pratap
Singh with experience of over 16 years and Mr. Rana Preet Inder
Singh, in the sugar industry through their association with SFGPL
and other group concerns of the company. Mr. Rana Preet Inder Singh
(director) has an experience of nearly one decade in the sugar
industry.
* Integrated Business Model: SFGPL is engaged in the manufacturing
of sugar as well as generation of power through a by-product of the
sugar manufacturing process viz. bagasse. The company has a power
generation capacity of 33 MW. The company uses the power generated
for captive consumption and the surplus power is sold to UPPCL
(Uttar Pradesh Power Corporation Limited) under a long-term PPA of
25 years which is valid from Jan-2017 till Jan-2042.
* Improved profitability margins: The profitability margins of the
company improved to 10.04% in FY22 as against 9.34% in FY21 majorly
due to shift in production of sugar from Grade C heavy to Grade B
heavy. Going forward the company is planning to produce only grade
B heavy molasses which is expected to improve the EBIDTA margins
going forward.
Liquidity: Poor
The company has poor liquidity marked by high working capital
utilisation of ~92% for the trailing 12 months ending August 2022.
The company is expected to generate cash accruals to the tune of
INR26.02 crore during FY23 as against repayment obligations of
INR29.28, the shortfall is expected to be met by promoters'
contribution.
SFGPL was incorporated in January-2007 and is being managed by Mr.
Rana Karan Pratap Singh and Mr. Rana Preet Inder Singh (Cousin of
Mr. Rana Inder Pratap Singh). The company is engaged in the
manufacturing of sugar since September-2014 with a total installed
crushing capacity of 6,500 tons per day (TPD) as on March 31, 2022.
The company also operates a bagasse-based power plant of 33 MW for
captive consumption and the surplus power is sold to UPPCL under
long-term PPA of 25 years which is valid till January 2042.
TECHNICAL PRODUCT: CARE Hikes Rating on INR8cr ST Loan from D
-------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Technical Product Corporation (TPC), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Short Term Bank
Facilities 8.00 CARE A4 Revised from CARE D
Detailed rationale and key rating drivers
The revision in the rating assigned to the bank facilities of TPC
factors in modest though growing scale of operations and
improvement in liquidity profile of the firm. The rating is also
constrained by foreign currency fluctuation risk, fragmented and
highly competitive industry and constitution of the entity being a
partnership firm. The rating, however, derive strength from
experienced proprietor and established track record of entity,
moderate profitability margins and comfortable capital structure
and moderate coverage indicators.
Rating sensitivities
Positive factors – Factors that could lead to positive rating
action/upgrade:
* Sustainable improvement in the scale of operations to above INR30
cr. in the medium term.
* Sustainable improvement in operating cycle below 60 days in the
medium term.
Negative Factors- Factors that could lead to negative rating
action/downgrade:
* Deterioration in the PBILDT margins below 14% on a sustainable
basis.
* Deterioration in debt coverage indicators marked by total debt to
GCA ratio and interest coverage ratio above 5.00x and below 10.00x,
respectively, on a sustainable basis.
* Deterioration in overall solvency position with the overall
gearing ratio above 1.50x on a sustainable basis.
Detailed description of the key rating drivers
Key Rating Weaknesses
* Modest though growing scale of operations: Technical Products
Corporation scale of operations remain modest though ascended as
marked by total operating income of INR25.70 crore and gross cash
accruals of INR4.18 crore respectively, during FY22 (based on
provisional result; refer to the period from April 01, 2021 to
March 31, 2022) as against INR18.19 crore and INR3.69 crore
respectively in FY21. Nevertheless, the scale remains modest, it
limits the firm's financial flexibility in times of stress and
deprives it of scale benefits. Though, the risk is partially
mitigated by the fact that the scale of operation is growing
continuously. For the period FY20-FY22, TPC total operating income
grew from INR16.76 crore to INR25.70 crore reflecting a compounded
annual growth rate (CAGR) of 15.32%. The same is on account of
higher intake from existing customers. Further, in 6MFY22 (refer to
the period from April 01, 2022, to September 30, 2022) total
operating income of the firm stood at INR18.60 crore and gross cash
accruals of INR2.84 crore respectively. The firm is expecting to
achieve total income from operation of ~Rs. 26.00 crore in FY23 as
envisaged.
* Foreign currency fluctuation risk: The income from exports
constituted 97% of the total revenue in FY22 while the raw material
procurement is done completely from the domestic market, thereby
exposing the firm to risks associated with adverse fluctuations in
the foreign currency. With initial cash outlay for procurement in
domestic currency & sales realization in foreign currency and in
the absence of any hedging mechanism, the firm is exposed to the
fluctuation in exchange rates. Further, TPC reported a gain out of
foreign exchange fluctuation amounting to INR0.25 crore in FY22
(PY: Gain of INR0.14 crore).
* Constitution of the entity being a partnership firm: TPC
constitution being a partnership firm has the inherent risk of
possibility of withdrawal of the partner's capital at the time of
personal contingency and firm being dissolved upon the
death/retirement/insolvency of partner. TPC operates in highly
competitive industry wherein there is presence of a large number of
players in the unorganized and organized sectors. Hence, the
players in the industry do not have any pricing power and are
exposed to competition induced pressures on profitability.
* Fragmented and highly competitive industry: The industry in which
the firm operates is characterized by highly fragmented and
unorganized nature of industry due to numerous small players. Low
entry barriers and low investment requirement makes the industry
highly lucrative and thus competitive. Smaller companies in general
are more vulnerable to intense competition due to their limited
pricing flexibility, which constrains their profitability as
compared to larger companies who have better efficiencies and
pricing power considering their scale of operations.
Key rating strengths
* Experienced proprietor and established track record of entity:
The firm commenced operations in 1975. It is being managed by Mr.
Ramesh Dudani as the proprietor. He has a total work experience of
around five decades, gained through TPC and other group concerns
– Star resort Pvt. Ltd. and Dudani Engg. Company Private Limited.
The proprietor has adequate acumen about various aspects of
business which is likely to benefit TPC in the long run. He is
supported by a team of experienced and qualified professionals
having varied experience in the technical, finance and marketing
fields. Furthermore, the long track record has aided the firm in
having established relationship with customers and suppliers.
* Moderate profitability margin: The profitability margin of the
firm stood moderate for the past three financial year ending FY22.
The profitability margins as marked by PBILDT and PAT margin has
declined and stood at 17.18% and 14.23% during FY22 as against
21.21% and 18.79% during FY21. The decline in margins is on account
of increase in prices of raw material coupled with increase in
overhead expenses. During 6MFY23, the firm reported PBILDT margin
of 15.64% and PAT margin of 11.88% respectively.
* Comfortable capital structure and moderate coverage indicators:
The capital structure of the firm improved and stood comfortable as
marked by overall gearing of 0.52x in FY22 (prov.) as against 0.92x
in FY21 on account of limited reliance on external borrowings. The
overall gearing is expected to improve further over the medium term
on account of decline in debt level due to regular repayments.
Further, owing to moderate profitability levels and lower debt
levels, the debt coverage indicators stood moderate in FY22 as
marked by interest coverage ratio and total debt to GCA which stood
at 16.27x (PY: 22.34x) and 1.03 (PY: 1.55x) respectively.
Liquidity analysis: Adequate
The liquidity position of the firm remains adequate characterized
by sufficient cushion in accruals vis-à-vis repayment obligations.
The firm has reported gross cash accruals to the extent of INR4.18
crore during FY22 and INR2.84 crore in 6MFY23 and is expected to
generate envisage GCA of INR5.00 crore for FY23 against repayment
obligations of INR0.48 crore. The working capital limit utilization
is around 75% for past 12 months period ending September 30, 2022.
However, the firm has low free cash & bank balances which stood at
INR0.12 crore as on March 31, 2022.
Technical Product Corporation (TPC) was established in 1975 as a
Proprietorship firm by Mr. Ramesh Dudani. TPC is engaged in
manufacturing of furniture, bedding and swimming pool components
made of plastic and steel like fasteners, springs and coils at its
manufacturing facility located in Mohali, Punjab with a total
installed capacity of 4000 metric tonne per annum as on September
30, 2022. The firm exports its products to U.S.A., Canada and
Europe. The firm has group concerns – Star Resort Pvt. Ltd.,
which is into hospitality business in Shimla since 2000.
TITAGARH WAGONS: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Titagarh Wagons Limited
756, Anandapur
E M Bypass
Kolkata 700107
Insolvency Commencement Date: November 1, 2022
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: April 30, 2023
Insolvency professional: Sriram Mittal
Interim Resolution
Professional: Sriram Mittal
Room No. 8, Block B
1st Floor, Mercantile Building
9 Lalbazar Street
Opposite Lalbazar Thana
Kolkata, West Bengal 700001
E-mail: sriramittal.ey@gmail.com
- and -
AAA Insolvency Professionals LLP
Mousumi Co.Op. Housing Society
15B, Ballygunge Circular Road
Kolkata 700019
E-mail: titagarhwgons.cirp@gmail.com
Last date for
submission of claims: November 15, 2022
UDIPTA ENERGY: CARE Withdraws D Long/Short Term Debt Ratings
------------------------------------------------------------
CARE Ratings Ltd. has reaffirmed and withdrawn the outstanding
ratings of 'CARE D/CARE D' assigned to the bank facilities of
Udipta Energy & Equipment Private Limited (UEEPL) with immediate
effect. The above action has been taken at the request of UEEPL and
'No Objection Certificate' received from the bank(s) that have
extended the facilities rated by CARE Ratings Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank - Reaffirmed at CARE D and
Facilities Withdrawn
Short Term Bank - Reaffirmed at CARE D and
Facilities Withdrawn
Detailed description of the key rating drivers
Key rating weaknesses
* On-going delay in term debt servicing: There is on-going delay in
term debt servicing of the company due to mismatch- of
cash flows.
* Small scale of operations: The scale of operations of UEPL
remained small marked by total operating income of INR46.14 crore
in FY22 as against INR42.07 crore in FY21. However, the total
operating income (TOI) has increased by 9.26 % in FY22 over FY21
due to higher execution of orders of on shore oil extraction
services and higher revenue derived from solar power generation
activities. It has booked a turnover of INR30.77 crore during
H1FY23. The small size restricts the financial flexibility of the
company and hinders its economies of scale.
* Capital as well as working capital intensive nature of
operations: The operation of the company is capital intensive in
nature as huge funds remained blocked in fixed assets. The same is
also reflected by fixed assets turnover ratio of 0.40x in FY22 and
0.39x in FY21. Further the business of UEPL is also working capital
intensive in nature as reflected by high gross current assets days
of 267 days in FY22 as against 284 days in FY21. The company mainly
works for government departments and accordingly the receipts of
contract proceeds get delayed, resulting in high average collection
periods. Further, the average inventory holding period also
remained high in the range of 104-118 days on the back of work
orders under execution stage coupled with stocking of equipment
parts for requirement for the purpose of the projects. Accordingly,
the average working capital utilization remained on the higher side
during last twelve months period ended August 31, 2022.
* Exposure to risk related to changes in regulations: Solar photo
voltaic power industry is exposed to the risk related to the
changes in regulations. A number of federal laws, regulations, and
executive orders apply to solar energy development activities in
India. The power generators also have different set of concerns
relating to the policy and regulatory aspects of large-scale
renewable energy integration with the grid.
* Dependence on climatic conditions: Solar PV is dependent on
climatic conditions as its output is very much dependent on
the weather conditions. Bright, sunny days will contribute to the
system working at peak capacity. But on a day with thick cloud
cover, power production will be much lower than average. Solar
cells perform better in cold rather than in hot climate and as
things stand, panels are rated at 25˚C which can be significantly
different from the real outdoor situation. For each degree rise in
temperature above 25˚C the panel output decays by about 0.25% for
amorphous cells and about 0.4-0.5% for crystalline cells. Thus, in
hot summer days panel temperature can easily reach 70˚C or more.
Accordingly, the panels will put out up to 25% less power compared
to what they are rated for at 25˚C. Thus, a 100W panel will
produce only 75W in May/June in most parts of India where
temperatures reach 45˚C and beyond in summer and electricity
demand is high.
* Intense competition with tender-driven process risk: UEPL faces
intense competition from various small as well as large players
operating in the same area of operations. Further, the company
participates in tender for contact orders floated by ONGC, Oil
India Ltd., and the orders are generally awarded to lowest bidder.
Therefore, it remains exposed to tender-driven process risk,
however, it has long-standing relationship with the aforementioned
companies which mitigates the risk to a certain extent.
Key rating strengths
* Long track record of operations: UEPL is into servicing
activities incidental to oil and gas extraction like directional
drilling, services with mobile rigs, mud engineering services,
operation & maintenance services for nitrogen pumping unit, coil
tubing unit, hot coil circulation unit, drilling tool and tubular
supplies, non-destructive testing of tubing and drill string
components & other service activities on contract basis for Oil and
Natural Gas Corporation Limited, Oil India Limited etc. Since 2002
and accordingly has long track record of operations. Furthermore,
the promoters Mr. Sanjib Kakaty (MD), geologist by qualification,
is associated with the company since its inception, looks after the
day to day operations of the company supported by Mrs. Manisha
Kakaty.
* Long-term Power Purchase Agreement (PPA) with NBPDCL and SBPDCL:
UEPL had entered into a PPA with the North Bihar Power Distribution
Company Ltd. (NBPDCL) and South Bihar Power Distribution Company
Ltd. (SBPDCL) for sale of generated power whereby NBPDCL and SBPDCL
have agreed to purchase 5 MW of solar power from UEPL. The validity
of the PPA is 25 years from the date of commercial operation i.e.
April 2017. Hence the risk of power off take is mitigated till the
validity of the PPA. UEPL will supply power to NBPDCL and SBPDCL at
INR7.98 per KWh (Kilowatt hour).
* Moderate profit margins and satisfactory order book position:
UEPL has an unexecuted order book position of Rs.225.11 crore
(4.88x of TOI of FY22) which is to be completed by November 2025.
The satisfactory order book indicates near to medium-term revenue
visibility. The profitability margins of the company have improved
on the back of higher revenue booked through solar power generation
activities and the same remained moderate marked by PBILDT margin
of 38.21% in FY22 as against 37.36% in FY21.
* Satisfactory capital structure and debt coverage indicators: The
overall gearing has improved to 1.28x as on March 31, 2022, as
against 1.51x as on March 31, 2021, on account of accretion of
profits to reserve with marginal reduction in overall debt. The
debt coverage indicator also remained satisfactory with interest
coverage ratio of 2.99x as on March 31, 2022, as against 2.27x as
on March 31, 2021. Also, total debt to GCA has improved to 5.39x as
on Mar 31, 2022, as against 7.35x as on Mar 31, 2021, due to
reduction in total debt and improvement of profit in absolute
term.
Incorporated in 2002, Udipta Energy & Equipment Private Limited
(UEPL) is promoted by Mr. Sanjib Kakaty and Mrs Manisha Kakaty for
providing services incidental to oil and gas extraction. The
company provides oil and gas field service activities like
directional drilling, drilling fluid services, services with mobile
rigs, mud engineering services, operations & maintenance services
for nitrogen pumping units, coil tubing units, hot coil circulation
units, drilling tool and tubular supplies, non destructive testing
of tubing and drill string components & other service activities on
contract basis for Oil and Natural Gas Corporation Limited, Oil
India Limited, GAIL (India) Limited, etc. However, in a bid to
diversify its revenue stream, UEPL has ventured into solar PV
segment. The company has set up and commenced operations of a 5 MW
grid connected solar power plant at Banka, Bihar. The company has
entered into a Power Purchase Agreement (PPA) with North Bihar
Power Distribution Company Ltd. (NBPDCL) and South Bihar Power
Distribution Company Ltd. (SBPDCL) for tenure of 25 years from the
date of its commercial operations i.e. April 2017. NBPDCL and
SBPDCL undertake to pay tariff of INR7.98 per KWh (Kilowatt hour)
for all the energy supplied at the Delivery Point corresponding to
Contracted Capacity. Both NBPDCL and SBPDC are the subsidiaries of
Bihar State Power (Holding) Company Limited (BSPHCL).
ULTRAMINE PIPETECH: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: Ultramine Pipetech Private Limited
40, Strand Road
3rd Floor, Room No. 4
Model House Kolkata
Kolkata WB 700001
IN
Insolvency Commencement Date: November 2, 2022
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: May 1, 2023
Insolvency professional: Mr. Manish Jain
Interim Resolution
Professional: Mr. Manish Jain
Manish Mahavir & Co.
2B, Grant Lane
Room No. 303, 3rd floor
Bajrang Kunj
Kolkata 700012
E-mail: manishmahavir@gmail.com
cirp.ultramine@gmail.com
Tel: 9830248684
8582806221
Last date for
submission of claims: November 16, 2022
VAIBHAVLAXMI CLEAN: CARE Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of
Vaibhavlaxmi Clean Energy LLP (VCEL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 42.07 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 September 16,
2021, placed the rating(s) of VCEL under the 'issuer
non-cooperating' category as VCEL 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. VCEL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated August 2, 2022, August 12, 2022, August 22,
2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Vaibhavlaxmi Clean Energy LLP (VCEL) is a Limited Liability
Partnership (LLP) firm, incorporated in September 2010 and promoted
by Mr. Sanjay Agarwal, Ms. Manjari Agarwal and M/s Power Private
Limited (MPPL). During June 2011, VCEL set upwind power generation
capacity of 14.4 MW including 8.4 MW at Ratlam, Madhya Pradesh (MP)
and 6 MW at Tirunelveli, Tamil Nadu (TN). VCEL had entered into
Power Purchase Agreements (PPAs) with M.P. Power Management Company
Limited for the Madhya Pradesh project for a period of 25 years
starting from July 2011 and with Tamil Nadu Generation and
Distribution Corporation Limited for the Tamil Nadu project for a
period of 20 years starting from August 2011.
VALECHA ENGINEERING: Insolvency Resolution Process Case Summary
---------------------------------------------------------------
Debtor: Valecha Engineering Limited
Valecha Chambers, 4th Floor
Plot No. B-6
Andheri New Link Road
Andheri (West) Mumbai 400053
Insolvency Commencement Date: October 31, 2022
Court: National Company Law Tribunal, Mumbai Bench, Court IV
Estimated date of closure of
insolvency resolution process: April 29, 2023
Insolvency professional: Anurag Kumar Sinha
Interim Resolution
Professional: Anurag Kumar Sinha
Flat No. 3602, Redwood (Tower No. 7)
Runwal Greens, Mulund-Goregaon Link Road
Bhandup (West), Mumbai City
Maharashtra 400078
E-mail: aksinhaip3@gmail.com
- and -
AAA Insolvency Professionals LLP
144-B, Mittal Court
14th Floor, Nariman Point
Mumbai 400021
E-mail: valecha.ibc@gmail.com
Last date for
submission of claims: November 14, 2022
VISHAL LAKTO: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Vishal Lakto India Limited
U 52/33, U Block, DLF
Phase-3, Sector 24
Gurugram, Haryana 122022
Insolvency Commencement Date: October 31, 2022
Court: National Company Law Tribunal, Noida Bench
Estimated date of closure of
insolvency resolution process: April 29, 2023
Insolvency professional: Mr. Ashish Singh
Interim Resolution
Professional: Mr. Ashish Singh
Flat No. 901, Tower A-3
Cleo County, Sector 121
Noida 201301
- and -
Unit No. 153A, Fifth Floor
Tower-A, A-41
The Corenthum, Sector 62
Noida 201301
Last date for
submission of claims: November 15, 2022
=================
I N D O N E S I A
=================
KAWASAN INDUSTRI: S&P Lowers LT ICR to 'CC' on Distressed Exchange
------------------------------------------------------------------
Nov. 8, 2022, S&P Global Ratings lowered its long-term issuer
credit rating on PT Kawasan Industri Jababeka Tbk. (Jababeka) and
issue rating on the company's guaranteed senior unsecured notes to
'CC' from 'CCC'.
The negative outlook reflects S&P's expectation that it will lower
the issuer credit rating on Jababeka to 'SD' (selective default)
and issue rating on its guaranteed senior unsecured notes to 'D'
(default) when the company completes the exchange offer.
The downgrade follows Jababeka's proposed exchange offer for its
US$300 million notes due in October 2023.
S&P said, "We view the transaction as a distressed exchange,
tantamount to a default. This is because we believe the
participating bondholders will receive less than originally
promised without adequate offsetting compensation. Jababeka will
partially repay the 2023 notes. For each principal dollar that
accepted the exchange offer, the bondholder will receive US$0.30 in
cash and US$0.70 principal amount of the new notes. Jababeka has
secured a US$100 million term loan from Bank Mandiri to support the
partial cash redemption. Although the participating investors will
receive par-for-par exchange on their existing notes, the proposed
new notes will extend the maturity to 2027 from 2023. We also do
not view the proposed new coupon structure as adequate compensation
because it is only slightly higher than the existing 2023 notes.
"In addition, we believe that the probability of a conventional
default would be high in the absence of the exchange offer, given
Jababeka's significant refinancing requirements over the next 12
months compared with thin operating cash flows."
Assuming a 90% acceptance rate of the exchange offer, Jababeka's
capital structure will mainly consist of US$189 million new notes
due in 2027, a US$100 million Bank Mandiri loan due in 2027, and
US$30 million old notes due in 2023. S&P expects Jababeka to repay
the old notes before maturity using internal accruals and US$19
million from the Bank Mandiri loan.
The sustainability of Jababeka's capital structure significantly
depends on its ability to continuously increase its positive free
operating cash flow post the exchange offer. This is because the
company needs to service the loan amortization and to meet cash
reserve account requirements under the loan agreement, which would
strain its thin operating cash flow and cash balance excluding
joint ventures (JVs).
Jababeka's cash balance, excluding JVs, will erode gradually after
the exchange transaction, despite lower hedging costs and lower
withholding tax since the new notes will be issued directly by the
company. S&P excludes JVs because the cash generated at JVs is not
readily accessible due to the significant shareholdings of minority
shareholders.
The cash deterioration is mainly driven by:
-- Amortization of bank loan of about Indonesian rupiah (IDR) 111
billion in 2023 and about IDR169 billion in 2024.
-- About IDR287 billion (US$20 million) cash will be placed into
cash reserve accounts under the Bank Mandiri loan agreement.
-- Repayment of the residual 2023 notes.
-- These obligations will consume nearly all the annual free
operating cash flow (FOCF) which we estimate at IDR140
billion-IDR240 billion over 2023-2024. The FOCF is after interest
and hedging expenses, which we estimate at IDR370 billion–IDR390
billion per annum.
S&P projects the company's cash balance (excluding JVs) will
gradually erode to IDR450 billion-IDR550 billion by the end of
2023, compared with about IDR650 billion as of June 30, 2022.
S&P said, "Jababeka's operating and financial metrics are on track.
The company achieved IDR848 billion marketing sales in the first
half of 2022, meeting 51% of our full-year estimate. Industrial
land sales are the key driver for the marketing sales, contributing
more than 70% of the total sales. We expect a gradual pickup in
land sales given the resumption of international travel. At the
consolidated level, including JVs, we forecast the company's ratio
of EBITDA over interest to be about 1.7x in 2022, before improving
to about 1.9x in 2023 in our base case. However, Jababeka's
leverage ratio remains high with a debt-to-EBITDA ratio close to
about 6x post the exchange offer. This is based on our assumption
that marketing sales will increase to IDR1.6 trillion-IDR1.7
trillion in 2022 and IDR1.8 trillion–IDR1.9 trillion in 2023,
compared with IDR1.4 trillion in 2021. This level of marketing
sales is similar to pre-pandemic levels.
"The negative outlook reflects our expectation that we will lower
the issuer credit rating on Jababeka to 'SD' and the issue rating
on its guaranteed senior unsecured notes to 'D' upon completion of
the exchange offer."
Environmental, Social, And Governance
ESG credit indicators: E-3, S-2, G-4
Governance factors are a negative consideration in S&P's credit
rating analysis of the company.
Jababeka's shareholder dispute in 2019 highlighted some weaknesses
in governance structure. While the lawsuits have been resolved,
lack of sufficient shareholder attendance in AGM continues to delay
key approvals, including the company's attempt in 2021 to obtain
shareholders' approval on bond guarantee. A reemergence of similar
issues this year will hurt the company's refinancing prospects and
creditors' confidence amid the approaching maturity of the U.S.
dollar notes in 2023.
S&P said, "Environmental risk factors are a moderately negative
consideration in our credit rating analysis of Jababeka. Property
development and land sales accounted for 40%-50% of the company's
revenue on average over the past three years. Jababeka's exposure
to industrial estates poses some pollution risks, but we believe
the company's efforts to treat wastewater and limit air pollution
from its industrial estates tempers the risk. Jababeka also owns
and operates a gas-fired power plant (29% of revenue on average).
While electricity generation exposes Jababeka to longer-term energy
transition risks from fossil fuels, the 20-year off-take agreement
with state-owned electricity distributor, PT Perusahaan Listrik
Negara (Persero), also adds stability to cash flow."
=========
J A P A N
=========
MITAMADO MOTOMACHI: Sapporo Temple Goes Bankrupt
------------------------------------------------
The Mainichi reports that a temple operating a facility storing
people's ashes has effectively gone bankrupt and its representative
is missing, leaving the remains of some 1,000 people locked inside
with no way for their relatives to retrieve them.
Since late October, no one has been attending to the Mitamado
Motomachi charnel house at Hakuhoji temple in Sapporo's Higashi
Ward, as the facility remains locked, the report relates.
According to the Sapporo Municipal Government and other sources,
the facility opened in 2012 and the temple sold each lot for
300,000 to JPY2.5 million (about $2,050 to $17,000). It housed the
remains of some 1,000 people from within and outside Hokkaido, the
report notes. However, after the temple fell into financial
difficulty, its creditor, a local funeral firm, seized the property
in November 2021, and it was sold to a local real estate company in
a forced auction in July 2022.
The Manichi relates that the religious corporation running the
temple held a briefing session for templegoers between Oct. 9 and
Oct. 11, where its representative Tsukasa Ota asked them to take
back their kin's remains. Ota told them, "We have no assets that we
can cash in on even though we want to repay you." He reportedly
told them that the temple had no intention of refunding fees
including those for using charnel lots, holding memorial services
for the deceased on behalf of relatives, and annual management
charges.
While the property had initially been scheduled to be handed over
to the real estate firm on Oct. 24, the company and the religious
corporation filed for an extension of the handover with the Sapporo
District Court, on the grounds that it would take time for the
remains to be returned to relatives. The court accordingly
postponed the date for forced execution of the property handover to
Nov. 21, according to The Mainichi.
The Mainichi says some templegoers have since managed to recover
their kin's remains, but all entrances to the unmanned charnel
house have been locked since Oct. 24, barring people's access to
the facility. Templegoers have been unable to get in touch with
Ota, and his whereabouts remains unknown.
The municipal government conducted an on-site inspection of the
charnel house on Oct. 21, ahead of its closure, but officials were
unable to find financial data, including a list of assets, required
under Japan's graveyards and burial law. Ota, who was present
during the inspection, reportedly told the officials, "The
documents won't turn up right away." The officials then told him
verbally that he must abide by legal obligations.
According to the report, the temple had apparently continued to
sell charnel lots to new clients even after the forced auction was
held in July. After learning this, the municipal government asked
it to stop selling lots in a written request in September.
While the temple operator has been in talks with the realtor over
continuing the charnel house, a municipal ordinance dictates that
only religious corporations or local governments are eligible to
run such facilities storing people's ashes.
In order to change the party responsible for keeping the remains, a
certificate of storage issued by the original manager is necessary,
but a city official said, "As the facility is locked, we haven't
been able to assess how the remains are managed. We are not sure if
storage certificates are prepared for all parties," The Mainichi
relays.
The president of the realtor said at a press conference on Nov. 7,
"We'd initially planned to build a condominium at the site of the
charnel house, but considering the sentiments of its users, we'd
like to pursue ways to keep the facility going."
TOBU RAILWAY: Egan-Jones Keeps 'BB-' Local Currency Unsec. Rating
-----------------------------------------------------------------
Egan-Jones Ratings Company, on October 7, 2022, retained its 'BB-'
local currency senior unsecured ratings on debt issued by Tobu
Railway Co Ltd.
Headquartered in Tokyo, Japan, Tobu Railway Co., Ltd. mainly
provides passenger rail and bus transportation services in the
Kanto area.
=====================
N E W Z E A L A N D
=====================
ARK HOTELS: Creditors' Proofs of Debt Due on Dec. 16
----------------------------------------------------
Creditors of Ark Hotels Limited and Prabhjan Holdings Limited are
required to file their proofs of debt by Dec. 16, 2022, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on Oct. 26, 2022.
The company's liquidators are:
Daran Nair
Nair Draht Limited
97 Great South Road
Greenlane
Auckland 1051
HEADWAY PSYCHOLOGY: Court to Hear Wind-Up Petition on Nov. 10
-------------------------------------------------------------
A petition to wind up the operations of Headway Psychology Services
Limited will be heard before the High Court at Christchurch on Nov.
10, 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:
Gabrielle McGillivray
Inland Revenue, Legal Services
PO Box 1782
Christchurch 8140
KELLISA FARMS: BDO Tauranga Limited Appointed as Liquidators
------------------------------------------------------------
Paul Thomas Manning and Kenneth Peter Brown of BDO Tauranga Limited
on Oct. 31, 2022, were appointed as liquidators of Kellisa Farms
Limited.
The liquidators may be reached at:
BDO Tauranga Limited
Level 1, The Hub
525 Cameron Road
PO Box 15660
Tauranga 3144
NEW ZEALAND LJ: Court to Hear Wind-Up Petition on Nov. 15
---------------------------------------------------------
A petition to wind up the operations of New Zealand LJ Food Express
Taupo Limited will be heard before the High Court at Rotorua on
Nov. 15, 2022, at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Sept. 9, 2022.
The Petitioner's solicitor is:
T. Saunders
Inland Revenue, Legal Services
21 Home Straight
PO Box 432
Hamilton
PLANTTECH RESEARCH: Board Votes to Put Company Into Liquidaton
--------------------------------------------------------------
Scoop.co.nz reports that the Chair of PlantTech Research Institute
Limited, Mr. Mark Gilbert, has announced that regrettably, the
company's shareholder has decided to put the company into
liquidation.
The company's pipeline of research project revenue has dried up as
its clients, mostly in the horticulture sector, are in turn facing
very tough seasonal and broader economic conditions. "The kiwifruit
and apple sectors in particular are facing their worst season in 10
years, and this is seriously impacting on their ability to invest
in innovation currently," the report quotes Mr. Gilbert as saying.
At the same time, the company's five year establishment funding
from the Ministry of Business, Innovation and Employment (MBIE) is
coming to an end.
"It has unfortunately been the perfect storm", said Mr Gilbert.
"Combined with the downturn in commercial revenue, the business is
unable to survive without further Government funding support, and
we have been told that none is available."
The Board therefore decided it had no option other than to make the
prudent decision to appoint liquidators while the company still
remains solvent. "The Board's expectation is that by making this
decision now, the business should be in a position to pay out full
entitlements due to all staff and to the company's creditors", said
Mr. Gilbert.
"The Board's view is that continuing the business from here would
risk trading the company into insolvency."
Scoop.co.nz relates that Mr. Gilbert said that he would like to
thank the Board, and the CEO Mark Begbie and his team of 15 staff,
all of whom have been passionately working in the business. "Some
fantastic work has been done by this company – work which in time
could create very significant economic benefits to New Zealand. We
hope that much of this work can be continued in future by others,
however it is no longer viable to do so under PlantTech as it
currently stands."
Steven Khov and Kieran Jones of Khov Jones have been appointed by
the company as liquidators. Any further enquiries may now be
directed to that firm.
WELLNESS HAVEN: Court to Hear Wind-Up Petition on Nov. 11
---------------------------------------------------------
A petition to wind up the operations of The Wellness Haven Limited
will be heard before the High Court at Auckland on Nov. 11, 2022,
at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Sept. 22, 2022.
The Petitioner's solicitor is:
Cloete Van Der Merwe
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
=================
S I N G A P O R E
=================
CARE FOODS: Court to Hear Wind-Up Petition on Nov. 25
-----------------------------------------------------
A petition to wind up the operations of Care Foods (S) Pte Ltd will
be heard before the High Court of Singapore on Nov. 25, 2022, at
10:00 a.m.
Maybank Singapore Limited filed the petition against the company on
Nov. 3, 2022.
The Petitioner's solicitors are:
Tito Isaac & Co LLP
1 North Bridge Road
#30-00 High Street Centre
Singapore 179094
E2O PTE: Creditors' Proofs of Debt Due on Dec. 9
------------------------------------------------
Creditors of E2O Pte. Ltd. are required to file their proofs of
debt by Dec. 9, 2022, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Nov. 1, 2022.
The company's liquidator is:
Ong Kok Yeong David
c/o Tricor Singapore Pte. Ltd.
80 Robinson Road #02-00
Singapore 068898
FAST RADIUS: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Three affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Fast Radius, Inc. (Lead Case) 22-11051
113 N. May Street
Chicago, IL 60607
Fast Radius Operations, Inc. 22-11052
113 N. May Street
Chicago, IL 60607
Fast Radius PTE Ltd. 22-11053
31 Alps Avenue
Singapore 498784
Business Description: Fast Radius is a cloud manufacturing and
digital supply chain company.
Chapter 11 Petition Date: November 7, 2022
Court: United States Bankruptcy Court
District of Delaware
Debtors' Counsel: R. Craig Martin, Esq.
DLA PIPER LLP (US)
1201 North Market Street, Suite 2100
Wilmington, DE 19801
Tel: (302) 468-5700
Fax: (302) 394-2341
Email: craig.martin@us.dlapiper.com
- and -
Rachel Ehrlich Albanese, Esq.
1251 Avenue of the Americas
New York, New York 10020
Tel: (212) 335-4500
Fax: (212) 335-4501
Email: rachel.albanese@us.dlapiper.com
- and -
W. Benjamin Winger, Esq.
444 West Lake Street, Suite 900
Chicago, Illinois 60606
Tel: (312) 368-4000
Fax: (312) 236-7516
Email: benjamin.winger@us.dlapiper.com
Debtors'
Co-Counsel: BAYARD, P.A.
Debtors'
Investment
Banker: LINCOLN PARTNERS ADVISORS LLC
Debtors'
Financial
Advisor: ALVAREZ & MARSAL NORTH AMERICA, LLC
Debtors'
Notice,
Claims,
Administrative,
Solicitation &
Balloting
Agent: STRETTO, INC.
Total Assets as of June 30, 2022: $69,329,000
Total Liabilities as of June 30, 2022: $55,212,000
The petitions were signed by Patrick McCusker as authorized
signatory.
Full-text copies of the petitions are available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/P3ZHEBA/Fast_Radius_Inc__debke-22-11051__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/MDUC75I/Fast_Radius_Operations_Inc__debke-22-11052__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/MKSEK2I/Fast_Radius_PTE_LTD__debke-22-11053__0001.0.pdf?mcid=tGE4TAMA
Consolidated List of Debtors' 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. Palantir Technologies Inc. Trade Payable $2,906,250
1555 Blake Street
Suite 250
Denver, CO 80202
United States
Attn: Ryan Taylor
Title: Chief Legal And Business
Affairs Officer
Tel: 650-252-0276
Email: jdaley@palantir.com
2. United Parcel Service Trade Payable $1,500,000
General Services Co.
55 Glenlake Parkway
Atlanta, GA 30328
United States
Attn: Eric Woltering
Title: Director of M&A
Tel: 404-828-6000
Email: nbrothers@ups.com
3. Russel Precision & Solution Trade Payable $888,365
678 Nathan Rd Room C, 15/F
Hua Chiao Commercial C
Mongkok,
Hong Kong
Attn: Mr. Ivan Liu
Title: President
Tel: 86-189-1409-8761;
86-512-6271-8492
Email: Hijklmn_005@hotmail.com
4. Jasonmould Industrial Trade Payable $485,048
Company Co., Ltd.
Junxi Industrial Zone Of
Longgang Village
Longxi Town
Boluo County
Huizhou City, 51681
China
Attn: Eva Zhang
Title: Account Manager
Tel: 86-752-668-2869
Email: info@jasonmolding.com
5. Carbon Trade Payable $425,252
1089 Mills Way
Redwood City, CA 94063
United States
Attn: Craig Carlson
Title: CTO
Tel: 650-285-6307
Email: Craig@Carbon3D.com
6. Xintianjian Industry Co. Limited Trade Payable $410,402
Baoyuanquan 1st Industrial Zone
Donghuan Road
Shajing Town,
China
Attn: Legal Department
Tel: 86-0769-8239-1669
Email: Katie@Xtj-Tech.com
7. Google Inc. Trade Payable $369,786
2710 Gateway Oaks Dr
Ste 150N
Sacramento, CA 95833
United States
Attn: Corporation Service Company
Tel: 650-253-0000
Email: google-legal-support@google.com
8. Donnelley Financial Solutions Trade Payable $311,029
35 West Wacker Drive
Chicago, IL 60601
United States
Attn: Eric Foster
Title: EVP & CIO
Tel: 1-800-823-5304
Email: Eric.Foster@Dfinsolutions.com
9. Decatur Mold Trade Payable $242,076
3330 State Hwy 7
North Vernon, IN 47265
United States
Attn: Rhonda Hoerle
Title: President
Tel: 812-346-5188
Email: Rhoerle@decaturmold.com
10. C&L Industries Co., Limited Trade Payable $196,032
Flatrm B7/F Chongming Building
72 Chenua Sha Wan Rd
Kowloon, Hong Kong
Attn: Sunny Chen
Title: President of Sales
Tel: 86-769-3336-5168
Email: sunny@clproduct.com
11. Mastergraphics Trade Payable $174,343
2920 Marketplace Dr
Ste 101
Fitchburg, WI 53719
United States
Attn: Kevin Carr
Title: President
Tel: 608-256-4884
Email: Kevin.Carr@Mastergraphics.com
12. Ellison Technologies Trade Payable $166,207
9828 Arlee Ave
Sante Fe Springs, CA 90670
United States
Attn: Jana Brown
Title: CFO
Tel: 562-949-8311
Email: Jbrown@Ellisontechnologies.com
13. Ernst & Young LLP Trade Payable $127,670
401 9th ave
New York, NY 10001
United States
Attn: Daniel Cullen
Title: Partner / Principal
Tel: 312-879-3672
Email: daniel.cullen@ey.com
14. Stratasys, Inc. Trade Payable $114,800
7665 Commerce Way
Eden Prairie, MN 55344
United States
Attn: Yoav Zeif
Title: CEO
Tel: 952-937-3000
Email: Yoav.Zeif@Stratasys.com
15. Better-Mold (Dg) Trade Payable $95,156
Industrial Co., Ltd
No.37, Lishang Avenue
Chang'An
Dongguan, China
Attn: Fiona Zhang
Title: Customer Support
Tel: 86-769-8285-5722
Email: Yunki@Better-Molds.com
16. Common Grounds Workplace Trade Payable $91,350
1635 Market Street
Floor 16
Philadelphia, PA 19103
United States
Attn: Scott Anderson
Title: COO
Tel: 856-313-5238
Email: scott_a@cgworkplace.com
17. ROD International Trade Payable $90,790
No. 4 Floor
Building A
5th Factory district,
Fuzhu 3rd Street
Dongguan City, 523637
China
Attn: Juan Rodriguez
Title: President
Tel: 86-137-1323-1795
Email: davis@rodintl.com
18. APIC (aplicaciones Trade Payable $87,325
industriales de calidad s.a. de c.v)
Av. San Rafael 9
2, 051
Parque, 52000
Mexico
Attn: Paul Vedrenne
Title: Director of Operations
Tel: 52-172-8285-0540
Email: Gabrielventosa@Apic.Com.Mx
19. Wrightwood Precision Products Trade Payable $79,084
4934 W Bloomingdale Ave
Chicago, IL 60639
United States
Attn: Joseph Folker
Title: President
Tel: 773-237-2737
Email: nicholas_folker@wrightwoodprecision.com
20. U.S. Customs and Customs Undetermined
Border Protection Obligations
1300 Pennsylvania Ave. NW
Washington, DC 20229
United States
Attn: Scott K. Falk
Title: Chief Counsel
Tel: 202-344-2940
Email: Scott.K.Falk@CBP.DHS.gov
MARINE TEC: Commences Wind-Up Proceedings
-----------------------------------------
Members of Marine Tec Tachibana Pte Ltd, on Nov. 3, 2022, passed a
resolution to voluntarily wind up the company's operations.
The company's liquidator is:
Chua Kaw Kia @ Chua Soo Chiew
101 Upper Cross Street
#06-11 People’s Park Centre
Singapore 058357
REALLYWORKS PTE: Court Enters Wind-Up Order
-------------------------------------------
The High Court of Singapore entered an order on Nov. 4, 2022, to
wind up the operations of Reallyworks (Pte.) Ltd.
Maybank Singapore Limited filed the petition against the company.
The company's liquidators are:
Gary Loh Weng Fatt
Leow Quek Shiong
c/o BDO Advisory Pte. Ltd.
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
VIENNA INTERNATIONAL: Court to Hear Wind-Up Petition on Nov. 25
---------------------------------------------------------------
A petition to wind up the operations of Vienna International
Seafood Restaurant Pte Ltd will be heard before the High Court of
Singapore on Nov. 25, 2022, at 10:00 a.m.
Maybank Singapore Limited filed the petition against the company on
Nov. 3, 2022.
The Petitioner's solicitors are:
Tito Isaac & Co LLP
1 North Bridge Road
#30-00 High Street Centre
Singapore 179094
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2022. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed
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thereof are US$25 each. For subscription information, contact
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*** End of Transmission ***