/raid1/www/Hosts/bankrupt/TCRAP_Public/221116.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Wednesday, November 16, 2022, Vol. 25, No. 223
Headlines
A U S T R A L I A
COLMONT SCHOOL: Administrators Recommend School's Liquidation
EARTHTEC HIRE: Second Creditors' Meeting Set for Nov. 22
ELEKO PTY: First Creditors' Meeting Set for Nov. 24
OXIGEN BUSINESS: Second Creditors' Meeting Set for Nov. 22
PERTH WORKS: Second Creditors' Meeting Set for Nov. 22
STONE MAISON: First Creditors' Meeting Set for Nov. 22
TRITON BOND 2022-4: S&P Assigns Prelim. B(sf) Rating on Cl. F Notes
C H I N A
CHINA: Lets Developers Access Pre-Sale Funds to Ease Cash Crunch
COUNTRY GARDEN: Seeks US$493MM From Share Sale to Help Repay Debt
XINJIANG FINANCIAL: Fitch Affirms BB+ LongTerm IDRs, Outlook Stable
I N D I A
ABHYUDAYA GREEN: ICRA Keeps B+ Debt Rating in Not Cooperating
BHOGAWATI SAHAKARI: CRISIL Revokes B Rating on INR60cr LT Loan
CHOICE HATCHERY: CRISIL Assigns B+ Rating to INR12cr Term Loan
CHOUNDESHWARI SAHAKARI: CRISIL Withdraws B- Rating on INR8cr Loan
CORE PLASTO: CRISIL Withdraws D Rating on INR14cr Cash Loan
DEVAKI COMMERCIAL: CRISIL Assigns B+ Rating to INR90cr Loan
DEVKINANDAN DEVELOPERS: CRISIL Rates INR59.5cr Term Loan at B+
GANTA SRIRAM: ICRA Keeps B+ Debt Ratings in Not Cooperating
GKB OPHTHALMICS: CRISIL Hikes Rating on INR5cr Cash Debt to C
GOLHAR GINNING: ICRA Keeps D Debt Ratings in Not Cooperating
GOVERNMENT TELE-COM: ICRA Keeps D Debt Rating in Not Cooperating
IL&FS GROUP: Commences Interim Distribution Payout
IL&FS TRANSPORTATION: ICRA Keeps D Ratings in Not Cooperating
JAIBALAJI STEEL: CRISIL Withdraws B- Rating on INR13.5cr Loan
JET AIRWAYS: Probe Into Executive No Impact on Acquisition Deal
K.P. BLUE: ICRA Keeps B+ Debt Rating in Not Cooperating Category
KANYA IRON: CRISIL Moves B+ Debt Ratings from Not Cooperating
MATHURA FIBRES: ICRA Assigns B+ Rating to INR20cr LT Loan
NARENDRA DEV: ICRA Keeps B+ Debt Rating in Not Cooperating
NETMATRIX CROP: ICRA Keeps B+ Debt Ratings in Not Cooperating
NOOR ICE: ICRA Keeps B+ Debt Rating in Not Cooperating Category
R.H. SORTEX: ICRA Keeps D Debt Ratings in Not Cooperating
RAVINDRA RICE: CRISIL Lowers Rating on INR16.5cr Cash Loan to D
RELIANCE CAPITAL: Birla Sun Life, Nippon Life Merger Talks Fail
SAHU HYDRO: ICRA Keeps B+ Debt Ratings in Not Cooperating
SOVA ELECTROCASTING: CRISIL Lowers Rating on INR25cr Loans to D
SRINIVASA HAIR: ICRA Keeps B+ Debt Ratings in Not Cooperating
SUNFLORA VITRIFIED: ICRA Keeps B+ Debt Ratings in Not Cooperating
N E W Z E A L A N D
BUTT SNORKELER: Creditors' Proofs of Debt Due on Dec. 9
FS GROUP: Court to Hear Wind-Up Petition on Nov. 21
LAKEWOOD PLAZA: Court to Hear Wind-Up Petition on Nov. 21
MECH FELLING: Court to Hear Wind-Up Petition on Dec. 14
MILFORD INFRASTRUCTURE: Creditors' Proofs of Debt Due on Jan. 8
S I N G A P O R E
FS AUSTRALIA: Creditors' Proofs of Debt Due on Dec. 12
HO BEE: Creditors' Proofs of Debt Due on Dec. 9
LEGACY WINE: Creditors' Proofs of Debt Due on Dec. 10
MERX AVIATION: Creditors' Proofs of Debt Due on Dec. 12
SILVER FACTORY: Commences Wind-Up Proceedings
S O U T H K O R E A
ASIANA AIRLINES: Britain Raises Concern Over Korean Air Merger
T A I W A N
[*] Fitch Affirms 8 Taiwanese Standalone Securities Firms' Ratings
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A U S T R A L I A
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COLMONT SCHOOL: Administrators Recommend School's Liquidation
-------------------------------------------------------------
The Sydney Morning Herald reports that an investigation into the
failed Colmont School's financial records has recommended the
school be put into liquidation and found that its directors may
have been trading while insolvent for more than six months before
its sudden collapse.
According to SMH, the report by the school's administrators, Cor
Cordis, casts doubt on a potential investor's hopes to revive the
former Kilmore International School in time for students to return
there in semester one next year.
It stated the company may have been insolvent from at least
December 2021. Cor Cordis is due to meet with creditors on November
17, SMH relates.
In July, more than 300 students were given just two days' notice
that the school would close. The Victorian Registration and
Qualifications Authority told administrators on August 30 that they
were cancelling the school and its boarding premises registration.
SMH says potential investor Ayub Khan is trying to revive the
school along with several parents and former teachers who were
devastated when it failed. He has missed the cut-off date to apply
for a new registration for next year.
Khan was defiant when contacted on Nov. 11, saying his proposal to
reopen the school was unchanged, despite the administrators'
recommendations, SMH notes.
"Worst-case scenario is it will open in term one 2024, that is the
normal cycle," he said.
Creditors will decide on November 17 whether the company could
execute a deed of company arrangement, which aims to maximise the
school's chances of continuing, whether the administration should
end, or whether the company should be wound up.
Administrator Rachel Burdett has recommended, on a preliminary
basis, that the company be wound up and a liquidator be appointed,
according to SMH.
"Should the company be placed into liquidation, the directors may
be exposed to an insolvent trading claim by the liquidator and
could be ordered to compensate the company for liabilities incurred
whilst the company was insolvent," her report said.
Although the administrators are still finalising their position and
seeking legal advice, according to their preliminary findings any
director breach claims would be in the vicinity of AUD500,000 to
AUD800,000.
SMH notes that the report also highlighted that due to AUD3.5
million in outstanding employee entitlements, unsecured creditors,
including trade creditors and families who paid student deposits,
were unlikely to get anything.
Cor Cordis is also reviewing whether breaches were made under the
Education Services for Overseas Students Act or Education and
Trading Reform Regulations 2017, SMH adds.
Among the reasons for the school's difficulties, administrators
listed a unique rental, asset license and service agreement which
amounted to "significant payments" and prevented it from accessing
debt funding due to a lack of physical assets, SMH notes.
Colmont School offered the International Baccalaureate diploma
program and as of July 26, had 359 enrolments including 29
international students and 35 boarding students. It employed 97
staff.
EARTHTEC HIRE: Second Creditors' Meeting Set for Nov. 22
--------------------------------------------------------
A second meeting of creditors in the proceedings of Earthtec Hire
Pty Ltd has been set for Nov. 22, 2022, at 3:30 p.m. via virtual
meeting.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Nov. 21, 2022, at 4:00 p.m.
Bruce Gleeson of Jones Partners Insolvency & Restructuring was
appointed as administrator of the company on Oct. 18, 2022.
ELEKO PTY: First Creditors' Meeting Set for Nov. 24
---------------------------------------------------
A first meeting of the creditors in the proceedings of Eleko Pty
Ltd will be held on Nov. 24, 2022, at 11:00 a.m. at Level 5, 115
Pitt Street in Sydney.
Shumit Banerjee of Westburn Advisory was appointed as administrator
of the company on Nov. 14, 2022.
OXIGEN BUSINESS: Second Creditors' Meeting Set for Nov. 22
----------------------------------------------------------
A second meeting of creditors in the proceedings of Oxigen Business
Consulting Pty Ltd has been set for Nov. 22, 2022, at 11:00 a.m. at
the offices of Westburn Advisory at Level 5, 115 Pitt Street in
Sydney.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Nov. 21, 2022, at 4:00 p.m.
Rajiv Ghedia and Shumit Banerjee of Westburn Advisory were
appointed as administrators of the company on Oct. 19, 2022.
PERTH WORKS: Second Creditors' Meeting Set for Nov. 22
------------------------------------------------------
A second meeting of creditors in the proceedings of Perth Works
Contracting Pty Ltd has been set for Nov. 22, 2022, at 11:00 a.m.
at Suite 6.02, L6, 109 St. Georges' Terrace in Perth and via
virtual meeting.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Nov. 21, 2022, at 4:00 p.m.
Jimmy Trpcevski and David Hurt of WA Insolvency Solutions were
appointed as administrators of the company on Nov. 22, 2022.
STONE MAISON: First Creditors' Meeting Set for Nov. 22
------------------------------------------------------
A first meeting of the creditors in the proceedings of Stone Maison
Pty. Limited will be held on Nov. 22, 2022, at 10:00 a.m. via
virtual meeting only.
Christopher Damien Darin of Worrells was appointed as administrator
of the company on Nov. 10, 2022.
TRITON BOND 2022-4: S&P Assigns Prelim. B(sf) Rating on Cl. F Notes
-------------------------------------------------------------------
S&P Global Ratings assigned its preliminary ratings to nine classes
of prime residential mortgage-backed securities (RMBS) to be issued
by Perpetual Corporate Trust Ltd. as trustee for Triton Bond Trust
2022-4 Series 1.
The preliminary ratings reflect:
-- S&P's view of the credit risk of the underlying collateral
portfolio, which comprises entirely of residential investment
mortgage loans, of which 77.3% are to SMSFs. Because this is a
closed portfolio, no further loans will be assigned to the trust
after the closing date.
-- S&P's view that the credit support is sufficient to withstand
the stresses it applies. This credit support comprises mortgage
lenders insurance covering 1.6% of the loans in the portfolio as
well as note subordination for all rated notes.
-- S&P's expectation that the various mechanisms to support
liquidity within the transaction, including an amortizing liquidity
facility equal to 1.0% of the invested amount of all rated and
class G notes, subject to a floor of 0.10% of the initial invested
amount of all notes, principal draws, and a loss reserve that
builds from excess spread, are sufficient under our stress
assumptions to ensure timely payment of interest.
-- The extraordinary expense reserve of A$150,000, funded from day
one by Columbus Capital Pty Ltd., available to meet extraordinary
expenses. The reserve will be topped up via excess spread if
drawn.
-- The benefit of a fixed- to floating-rate interest-rate swap
provided by National Australia Bank Ltd. to hedge the mismatch
between receipts from any fixed-rate mortgage loans and the
variable-rate RMBS, should any be entered into after transaction
close.
Preliminary Ratings Assigned
Triton Bond Trust 2022-4 Series 1
Class A1-MM, A$80.00 million: AAA (sf)
Class A1-AU, A$345.00 million: AAA (sf)
Class A2, A$35.00 million: AAA (sf)
Class AB, A$15.00 million: AAA (sf)
Class B, A$8.00 million: AA (sf)
Class C, A$6.50 million: A (sf)
Class D, A$4.50 million: BBB (sf)
Class E, A$2.75 million: BB (sf)
Class F, A$1.45 million: B (sf)
Class G, A$1.80 million: Not rated
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C H I N A
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CHINA: Lets Developers Access Pre-Sale Funds to Ease Cash Crunch
----------------------------------------------------------------
Bloomberg News reportst that China gave embattled real-estate
developers a boost on Nov. 14 by allowing them access to more money
held in pre-sale accounts, the biggest source of funds for the
cash-strapped builders.
China will give "quality" property developers access to as much as
30% of the pre-sale funds with letters of guarantee from banks,
according to a statement posted on the banking and insurance
regulator's website, Bloomberg relays. The funds are money that
home buyers have paid to developers in advance of their property
being built, and are generally held in an escrow account.
According to Bloomberg, the economy has slowed drastically this
year as the more than year-long housing slump and the Covid Zero
policy have weighed on business activity and private consumption.
In the past week, policymakers have taken clear steps to try to
reduce the economic burden of Covid restrictions and to rescue the
property market, in a strong sign that the government is turning
its attention toward shoring up the world's second-largest economy.
"It's the third important easing on developers' finance, following
the guaranteed bond scheme and the 16-point supportive plan,"
Bloomberg quotes Yan Yuejin, research director at E-house China
Research and Development Institute, as saying. "The potential
pre-sales proceeds that can be accessed amount to as much as 10% of
national property sales value, which matters a lot to improving
liquidity."
However, property developers with obvious risks won't enjoy any
benefit as regulators will only support developers with sound
fundamentals, Yan said.
Pre-sales proceeds have been one of developers' biggest and
most-important financing channels, especially after builders were
increasingly shunned by banks, trust companies and bond investors,
Bloomberg says. The pre-sale money was 49% of all developers'
sources of funding in September, but in the face of a widespread
boycott of mortgage payments over delayed construction, local
governments have tightened oversight on developers withdrawing such
funds from escrow accounts, exacerbating their liquidity stresses.
Any funds which are withdrawn shouldn't be used to buy land, make
new investments or repay money borrowed from shareholders, the
statement said, adding that the money should primarily be used to
pay for construction of projects and to repay due debts for
specific projects, Bloomberg relays.
"The policy, while taken at face value, is positive but I would say
the effect is probably limited as only developers that are better
off are more likely to get the banks' consent to access pre-sale
funds," the report quotes Raymond Cheng, head of China and Hong
Kong research at CGS-CIMB Securities, as saying. "It's still going
to be voluntary rather than mandatory for the banks."
COUNTRY GARDEN: Seeks US$493MM From Share Sale to Help Repay Debt
-----------------------------------------------------------------
South China Morning Post reports that Country Garden Holdings,
China's fourth-largest developer by market value, is seeking
HK$3.87 billion (US$493 million) of net proceeds from a stock
placement to help repay offshore debt after a liquidity squeeze
that crashed the industry over the past two years.
According to the Post, the home builder plans to sell 1.463 billion
new shares at HK$2.68 each, or 6 per cent of its existing capital,
to undisclosed investors. The price represents a 17.8 per cent
discount to its last-traded price of HK$3.26 on Monday. The
placement is being made under a mandate previously approved by its
shareholders.
Country Garden, which is based in Foshan in southern Guangdong
province, hired UBS and JPMorgan Chase to find buyers for the
shares for a 1.25 per cent commission of the gross proceeds.
"Country Garden is leveraging its recent stock rally to rake in
money," the report quotes Dai Ming, a fund manager at Huichen Asset
Management in Shanghai, as saying. "The issue is with the pricing.
After the wild price swing, how many investors are willing to buy
the placement stocks based on the market price?"
Shares of Country Garden slipped 1.8 per cent to HK$3.20 on Nov.
15, after earlier losing as much as 15 per cent. The stock had
surged 223 per cent this month through Nov. 14 as China began to
selectively bail out some debt-stricken developers, the Post says.
The central bank last week issued a 16-point plan that included
asking commercial banks to boost lending to them.
Since Beijing began curbing excessive debt among weak developers to
protect the financial system, China's real estate market has seized
up with unprecedented debt defaults. Banks have shut off liquidity
tap while offshore bond investors demanded extra risk premium to
lend to troubled developers.
"It is intended that the net proceeds will be utilised for
refinancing existing offshore indebtedness and general working
capital," the company said in a Hong Kong stock exchange filing on
Nov. 15, the Post relays.
Country Garden's cash declined to about CNY148 billion (US$21
billion) on June 30 from CNY181.3 billion at the end of 2021,
according to interim report, while its borrowings and debts
amounted to about CNY294 billion, the Post discloses. The firm
reduced its total debt by CNY24.2 billion to CNY293.7 billion over
that period. On June 30, it had CNY53 billion of borrowings
maturing within 12 months.
Before a 45.5 per cent rally on Nov. 14, Country Garden had plunged
83.5 per cent since the infamous "three red lines" policy in August
2020, erasing HK181.6 billion of its market value, according to
Bloomberg data. The MSCI China Real Estate Index, which tracks 29
mainland developers including China Vanke, Longfor and Country
Garden, declined 50 per cent in the same period, wiping out US$1.83
trillion of capitalisation.
The Post notes that China last week unveiled a slew of easing
measures in a move seen as helping end the industry crisis. While
policymakers are signalling their intent to rescue the industry,
once a major economic pillar, there is still a big question mark on
how many players will survive the crisis, Dai at Huichen Asset
said.
Country Garden is led by Yang Huiyan, who controlled 61.2 per cent
of the company. Ranked the richest woman in China, she is credited
with US$10.2 billion of wealth, according to Forbes. She is the
co-chair of the company with her father Yeung Kwok-keung.
The firm reported a 31% drop in sales in the first six months of
this year, while net income tumbled 96 per cent from a year
earlier, the Post discloses citing Country Garden's interim report
to shareholders in September. It blamed Covid-19 outbreaks,
industry crisis and foreign-exchange loss for the slump.
About Country Garden
Country Garden Holdings Company Limited is an investment holding
company principally engaged in the sales of properties. The Company
operates its business through five segments: Property Development
segment, Construction Fitting and Decoration segment, Property
Investment segment, Property Management segment and Hotel Operation
segment. The Company's subsidiaries include Wuhan Country Garden
Lianfa Investment Co., Ltd, Jurong Country Garden Property
Development Co., Ltd and Chuzhou Country Garden Property
Development Co., Ltd.
As recently reported in the Troubled Company Reporter-Asia Pacific,
on Sept. 19, 2022, S&P Global Ratings lowered its long-term issuer
credit rating on Country Garden to 'BB' from 'BB+'.
The negative outlook on Country Garden reflects the risk that the
company's liquidity buffer and leverage could further deteriorate
due to weaker sales and a high amount of construction expenditure.
XINJIANG FINANCIAL: Fitch Affirms BB+ LongTerm IDRs, Outlook Stable
-------------------------------------------------------------------
Fitch Ratings has affirmed Xinjiang Financial Investment Co.,
Ltd.'s Long-Term Foreign- and Local-Currency Issuer Default Ratings
(IDR) of 'BB+'. The Outlook is Stable.
Fitch has also affirmed Xinjiang Financial's USD67 million 5.6%
senior unsecured notes due 2025 at 'BB+'. The offshore notes are
rated at the same level as Xinjiang Financial's IDRs, as they
represent the direct, unsubordinated, unconditional and unsecured
obligations of Xinjiang Financial and will at all times rank pari
passu with all its other unsecured and unsubordinated obligations.
Xinjiang Financial was established in 2008 by the State-owned
Assets Supervision and Administration Commission of Xinjiang
(Xinjiang SASAC). Xinjiang Financial is the only local regional
holding platform in Xinjiang for financial investments. It invests
in local financial institutions through their debt and equity
securities. The group plays an important role in maintaining the
stability of the local financial system as a state-owned asset
operation platform of the autonomous region's government.
KEY RATING DRIVERS
'Very Strong' Status, Ownership and Control: Fitch assesses this
attribute as 'Very Strong', based on the government's oversight of
Xinjiang Financial, which is 90.48% owned and ultimately controlled
by the Xinjiang SASAC. The government appoints or nominates most of
Xinjiang Financial's board members and senior management, and any
changes in the board of supervisors or board of directors require
government approval. The government also approves the company's
major decisions.
'Moderate' Support Record: Government subsidies represented less
than 10% of Xinjiang Financial's net profit during 2019-2021. The
government mainly provides capital injections and stake transfers
from state-owned enterprises (SOEs) to facilitate the company's
business development. This attribute is constrained by the lack of
continuous support, such as substantial amounts of capital
injections, holding controlling stakes of key SOEs, and the limited
visibility of future support.
'Moderate' Socio-Political Implications of Default: Xinjiang
Financial is the only platform in the Xinjiang Uygur Autonomous
Region that is engaged in financial investment and has the task of
maintaining regional financial stability. However, Fitch expects
that a default by Xinjiang Financial would have limited
social-political implications, as other local government-related
entities (GREs) could potentially replace it without causing a
material interruption in social services, on account of its status
as a government investment vehicle.
'Moderate' Financial Implications of Default: Fitch believes the
government's failure to provide timely support, if needed, could
damage the government's reputation and affect financing
availability for the province's other GREs. Nevertheless, Xinjiang
Financial's operations are small in terms of asset size relative to
the government's assets. Fitch therefore views the financial impact
of a default as 'Moderate'.
'b' Standalone Credit Profile: Fitch assesses Xinjiang Financial's
parent-level Standalone Credit Profile (SCP) as it is a strategic
holding company. Fitch expects a 'Weaker' financial profile on the
basis of its high leverage, with projected net debt/EBITDA to reach
21x by 2026 under Fitch's base case. Fitch assesses revenue
defensibility as 'Weaker', because parent-level revenue is mostly
from financial and investment income, and hence is subject to
cyclicality from subsidiaries. Operating risk is 'Midrange', as the
parent is an investment holding company with limited staff and is
unlikely to see a sharp rise in costs.
DERIVATION SUMMARY
Fitch assesses Xinjiang Financial under its Government-Related
Entities Rating Criteria, reflecting Xinjiang Uygur Autonomous
Region's ultimate ownership and oversight, and the company's
functional role in Xinjiang's development, as a key strategic
initiative of the government. These factors indicate a strong
incentive by the sponsor to provide extraordinary support to
Xinjiang Financial, if needed.
Xinjiang Financial's IDRs were derived from the four factors under
Fitch's Government-Related Entities Rating Criteria and the SCP of
'b' from its Public Sector, Revenue-Supported Rating Criteria.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- An upward revision of Fitch's credit view on Xinjiang's ability
to provide subsidies, grants or other legitimate resources allowed
under China's policies and regulations.
- An increase in the Xinjiang government's incentive to support
Xinjiang Financial, including stronger socio-political and
financial implications of a default or a stronger support record.
- An upgrade of Xinjiang Financial's IDRs would result in an
upgrade of the rating on its bonds.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- A downward revision in Fitch's credit view on Xinjiang's ability
to provide subsidies, grants or other legitimate resources allowed
under China's policies and regulations
- A significant weakening in the socio-political and financial
implications of a default by Xinjiang Financial, a weaker
government support record, or a dilution in the government's
shareholding.
- A downgrade of Xinjiang Financial's IDRs would result in a
downgrade of the rating on its bonds.
ISSUER PROFILE
Xinjiang Financial was established in 2008 by the Xinjiang SASAC.
It is 90.48% owned and controlled by the Xinjiang SASAC and 9.52%
owned by Xinjiang Finance Bureau as of end-June 2022. Xinjiang
Financial is the only local regional holding platform in Xinjiang
for financial investments and also invests in local financial
institutions through its debt and equity securities. The group
engages in a diversified range of business, including 1) wool
textile, 2) non-ferrous metals, 3) real estate development, 4)
asset management, 5) micro-financing, 6) medical equipment, 7)
equity exchange platform, 8) architectural design and 9) other
businesses. It is one of the largest GREs under the Xinjiang
SASAC's control, with consolidated total assets and net assets of
CNY29.7 billion and CNY14.7 billion as of 1H22.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
Entity/Debt Rating Prior
----------- ------ -----
Xinjiang Financial
Investment Co., Ltd. LT IDR BB+ Affirmed BB+
LC LT IDR BB+ Affirmed BB+
senior unsecured LT BB+ Affirmed BB+
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I N D I A
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ABHYUDAYA GREEN: ICRA Keeps B+ Debt Rating in Not Cooperating
-------------------------------------------------------------
ICRA has retained the rating for the bank facilities of Abhyudaya
Green Economic Zones Private Limited in the 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA]B+ (Stable);
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 7.35 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Incorporated in 2013, Abhyudaya Green Economic Zones Private
Limited is setting up a 4.00 MW (AC) grid connected solar PV power
plant in Chevella Village, Ranga Reddy District, Telangana. The
operations are being managed by Dr. Vijay Kolaventy, who has more
than 25 years of experience in Information Technology, Information
Technology Enabled Services, Renewable Energy and Energy Efficiency
services. AGEZPL has signed PPA with TSSPDCL at a tariff rate of
INR6.49/- valid for 20 years. The total cost of solar power plant
is INR29.37 crore which is funded by INR7.34 crore of equity,
INR7.35 crore of term loan and INR14.68 crore by IFCI in the form
of Optionally Convertible Debentures (OCD). The expected COD of the
plant was March 2016.
BHOGAWATI SAHAKARI: CRISIL Revokes B Rating on INR60cr LT Loan
--------------------------------------------------------------
CRISIL Ratings has revoked the suspension of its ratings on the
bank facilities of Shree Bhogawati Sahakari Sakhar Karkhana Limited
(SBSSKL) and has assigned its 'CRISIL B/Stable/CRISIL A4’ ratings
to them. CRISIL Ratings had suspended the ratings on July 7, 2014
on account of non-cooperation by UPL with CRISIL's efforts to
undertake a review of the ratings outstanding. UPL has now shared
the requisite information enabling CRISIL Ratings to assign its
ratings.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term
Bank Loan Facility 60 CRISIL B/Stable (Assigned;
Suspension Revoked)
Proposed Short Term 40 CRISIL A4 (Assigned;
Bank Loan Facility Suspension Revoked)
Proposed Short Term 106 CRISIL A4 (Assigned;
Bank Loan Facility Suspension Revoked)
Sugar Pledge 60 CRISIL B/Stable (Assigned;
Cash Credit Suspension Revoked)
Sugar Pledge 45 CRISIL B/Stable (Assigned;
Cash Credit Suspension Revoked)
Sugar Pledge 89 CRISIL B/Stable (Assigned;
Cash Credit Suspension Revoked)
The ratings reflect the society’s below-average financial risk
profile due to large debt levels and exposure to cyclicality and
regulatory changes associated with the sugar business. These
weaknesses are partially offset by the society’s established
presence in the industry and average business risk profile.
Key rating drivers and detailed description
Weaknesses:
* Below-average financial risk profile: Financial risk profile is
marked by leveraged capital structure as reflected in gearing and
total outside liabilities and adjusted networth (TOLANW) ratios of
8.79 and 10.36 times, respectively, as on March 31, 2022, on
account of loans such as sugar pledged, soft and short-term to
bridge the working capital gap and meeting other expenses. Also,
fund-based utilisation remains higher during peak season (November
to May). As the mill is a society, it operates on a no profit no
loss basis, the accretion to reserve is limited and hence networth
remains modest in comparison to scale. Due to high debt and low
profits, debt protection metrics remain weak, as reflected in
interest coverage ratio of just above 1 time.
* Exposure to regulatory changes and cyclicality in the sugar
industry and risk associated with singular dependence on sugar
sales: Regulatory mechanisms and dependence on monsoon lead to
cyclicality in the sugar industry, which may impact SBSSKL’s
performance. The government regulates the domestic demand-supply
scenario by restricting imports and exports, as well as the prices
of sugar cane. Moreover, due to non-integrated business model, the
company is solely dependent on sugar sales, which is susceptible to
both sugar prices and sugarcane cane prices to be paid to farmers.
Strengths:
* Society’s established presence: The society has an operational
track record of more than five decades. Its established presence
and association with a large number of member farmers from 55-60
villages, aids in regular sugar cane procurement. The board of
representatives consists of directors elected by member farmers
with other directors nominated by various regulatory and industry
bodies. The board is supported by a qualified management team who
run the society professionally.
* Moderate scale of operations: Society has sugar cane crushing
capacity of 4000 TCD and crushes around 5 lakh million tonne (MT),
regularly. Revenue fell to INR238 crore in fiscal 2022 from INR262
crore in fiscal 2021 due to lower sugar sales; majority of the
sales is to traders, which depends on the release quota set by the
government. Owing to better sugar cane crushing, the company had
adequate inventory of INR240 crore as on March 31, 2022 and sales
are expected to improve in fiscal 2023.
Liquidity: Stretched
Expected annual cash accrual of INR1-2 crore is insufficient
against repayment obligations of INR20 crore over the medium term.
Being a cooperative sugar factory, the society operates on a no
profit no loss basis, as profit is distributed among members
(usually farmers). Accordingly, the society generates low accruals.
However, funds can be earmarked for debt repayment and also sugar
pledge limit of INR194 crore can be used for meeting funding
requirement. Moreover, society always has an option to retain
profit in case of higher internal fund requirement.
The company has sugar pledged limit of Rs.194 crore where drawing
power depends on the sugar pledge stock where utilization is higher
during peak season
Outlook: Stable
CRISIL Ratings believes SBSSKL will continue to benefit from the
extensive experience of its members.
Rating sensitivity factors
Upward Factors
* Sustained and significant growth in revenue and a steady
operating margin, leading to higher cash accrual
* Better working capital management and improvement in gearing
(below 3 times on a sustained basis)
Downward Factors
* Weaker operating performance due to lower availability of sugar
cane (less than 4 lakh MT) or lower sugar realization
* Increase in working capital requirements or any large debt-funded
capital expenditure weakening the liquidity and financial risk
profiles.
Established in 1955 as a cooperative sugar factory, SBSSKL
manufactures sugar and its by-products molasses, bagasse, and
rectified spirit. It is based in Kolhapur district of Maharashtra
and has a crushing capacity of 4,000 TCD. Currently, Mr P.N Patil
(Chairman) and Mr Udaysinh Patil (Vice Chairman) along with 21
elected members of the board manage the operations.
CHOICE HATCHERY: CRISIL Assigns B+ Rating to INR12cr Term Loan
--------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable’ ratings on the
long-term bank facility of Choice Hatchery Pvt Ltd (CHPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6.05 CRISIL B+/Stable (Assigned)
Proposed Fund-
Based Bank Limits 1.45 CRISIL B+/Stable (Assigned)
Term Loan 12.00 CRISIL B+/Stable (Assigned)
The ratings reflect the modest yet improving scale of operations of
CHPL, its working capital-intensive operations and weak financial
risk profile. The ratings also reflect the exposure to intense
competition and risks inherent in the poultry industry. These
weaknesses are partially offset by the extensive experience of the
promoters in the poultry business.
Key Rating Drivers & Detailed Description
Weakness:
* Modest yet improving scale of operations: Scale of operations
remains modest, as reflected in total operating income of INR26.91
crore in fiscal 2022. However, the scale has picked up
significantly after hatchery operations commenced in fiscal 2018.
* Working capital-intensive operations: Gross current assets were
high at 174 days as on March 31, 2022. The company needs to extend
moderate credit period to its customers and also hold large
work-in-process and finished goods inventory, given the nature of
business.
* Exposure to intense competition and risks inherent in the poultry
industry: The poultry industry has several organized and
unorganized players catering to regional demand. It is also
susceptible to regional demand-supply factors, because of
transportation constraints and limited shelf life of products.
Outbreak of an epidemic could lead to a drop in sales volume and
realizations. Moreover, demand for poultry is seasonal, due to
religious beliefs.
* Average financial risk profile: Financial risk profile is marked
by high gearing of 3.19 times and total outside liabilities to
adjusted networth ratio of 3.42 times as on March 31, 2022. Debt
protection measures have also been weak due to high gearing and low
accrual from the operations. Interest coverage and net cash accrual
to total debt ratios stood at 1.75 times and 0.07 time,
respectively, for fiscal 2022, and should remain stable over the
medium term.
Strength:
* Extensive experience of the promoters: The two-decade-long
experience of the promoters in the poultry industry, their strong
understanding of market dynamics and established relationships with
suppliers and customers will continue to support the business risk
profile.
Liquidity: Stretched
Bank limit utilization is high around 97.6 percent for the past
twelve months ended September 2022.
Expected cash accrual of over INR2-2.6 crore should suffice to
cover the term debt of INR2 crore in the medium term. Current ratio
was healthy at 1.37 times as on March 31, 2022. The promoters are
likely to extend support via unsecured loans to cover the working
capital expense and debt obligation.
Outlook Stable
CRISIL Ratings believes CHPL will continue to benefit from the
extensive experience of its promoter in the poultry industry and
the established relationships with clients.
Rating Sensitivity factors
Upward factors
* Sustained growth in revenue (by 20%) and a stable operating
margin, leading to higher cash accrual
* Improvement in financial risk profile with lower gearing ratio
and higher debt protection metrics.
Downward factors
Downward factors
* Decline in scale of operations, leading to net cash accrual of
less than INR1 crore
* Any large debt-funded capital expenditure or substantial increase
in working capital requirement weakening the financial risk profile
and liquidity
CHPL was incorporated in 2018, by the promoter Mr Vinay Deswal. The
company is engaged in the business of poultry breeding and
hatching. It has day old chick breeder farms at Bemetra district of
Chhattisgarh.
CHOUNDESHWARI SAHAKARI: CRISIL Withdraws B- Rating on INR8cr Loan
-----------------------------------------------------------------
Due to inadequate information and in line with the Securities and
Exchange Board of India guidelines, CRISIL Ratings had migrated its
rating on the long-term bank facilities of Choundeshwari Sahakari
Soot Girani Ltd (CSSGL) to 'CRISIL B-/Stable; Issuer not
cooperating’. However, the company’s management has started
sharing the information necessary for a comprehensive review of the
rating. Consequently, CRISIL Ratings has migrated the rating to
'CRISIL B-/Stable’ and subsequently withdrawn the rating at the
company’s request and on receipt of a no-due certificate from its
banker. This is in line with the CRISIL Ratings policy on
withdrawal of bank loan ratings.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3 CRISIL B-/Stable (Migrated
from 'CRISIL B-/Stable
ISSUER NOT COOPERATING';
Rating Withdrawn)
Working Capital
Term Loan 8 CRISIL B-/Stable (Migrated
from 'CRISIL B-/Stable
ISSUER NOT COOPERATING';
Rating Withdrawn)
The rating continues to reflect the company’s weak financial risk
profile and susceptibility to fluctuations in cotton prices and
regulatory changes. These weaknesses are partially offset by the
extensive experience of the promoter in the cotton yarn industry.
Key Rating Drivers & Detailed Description
Weakness:
* Weak financial risk profile: Capital structure is weak as
indicated by modest networth of INR16 crore and high gearing and
total outside liabilities to adjusted networth (TOLANW) ratio of
2.92 times and 3.78 times, respectively, as on March 31, 2022. Debt
protection metrics were average, with interest coverage ratio at
1.74 times and weak net cash accrual to adjusted debt (NCATD) ratio
in fiscal 2022. Steady accretions should help improve the debt
protection metrics over the medium term.
* Susceptibility to fluctuations in cotton prices and regulatory
changes: Prices of cotton, the key raw material accounting for over
70% of the company's turnover, are volatile as availability depends
on the extent of rainfall. Furthermore, government interventions
and fluctuations in global cotton output have resulted in sharp
fluctuations in cotton prices in the past and impacted
profitability.
Strengths:
* Extensive experience of the promoter: The promoter’s experience
of over 29 years, strong understanding of local market dynamics and
healthy relationships with customers and suppliers should continue
to support the business.
Liquidity: Stretched
Cash accrual is expected at INR6.32 crore for fiscal 2023 against
debt obligation of INR5 crore. The cash and bank balance stood at
INR47 lakhs as on March 31, 2022.
Outlook - Stable
CRISIL Ratings believes CSSGL will continue to benefit from the
extensive experience of the promoter.
Rating Sensitivity factors
Upward factors
* Substantial and sustainable increase in revenue and improvement
in the operating margin, leading to net cash accrual above INR8.5
crore
* Improvement in the financial risk profile, with moderation in the
TOLANW ratio to below 2 times
Downward factors
* Weakening business risk profile because of decline in revenue,
leading to lower cash accrual
* Deterioration in the financial risk profile because of stretch in
the working capital cycle or any large, debt-funded capital
expenditure
Registered in 1996, CSSGL is a co-operative organisation formed
under the leadership of the Devang Koshti Samaj and its steering
committee. All its members are weavers. It is based in Kolhapur,
Maharashtra, and manufactures 100% cotton yarn. Mr Sanjay Kamble is
the chairman.
CORE PLASTO: CRISIL Withdraws D Rating on INR14cr Cash Loan
-----------------------------------------------------------
CRISIL Ratings has withdrawn its ratings on the bank facilities of
Core Plasto Enterprises (CPE) on the request of the company and
receipt of a no objection certificate from its bank. The rating
action is in line with CRISIL Ratings’ policy on withdrawal of
its ratings on bank loans.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 14 CRISIL D/Issuer Not
Cooperating (Withdrawn)
Term Loan 2 CRISIL D/Issuer Not
Cooperating (Withdrawn)
CRISIL Ratings has been consistently following up with CPE for
obtaining information through letters and emails dated May 10, 2022
and July 11, 2022, among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of CPE. This restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on CPE
is consistent with 'Assessing Information Adequacy Risk’. Based
on the last available information, the rating on bank facilities of
CPE continues to be 'CRISIL D Issuer Not Cooperating'.
Set up as a partnership firm in 2007 in Chennai, CPE manufactures
plastic injection molds primarily for use in home appliances. The
company's products include table top wet grinders, mixer grinders
and plastic dash board components for 4-wheelers. Mr. Renny Jose
and his brother Mr. Reji Jose manage the operations.
DEVAKI COMMERCIAL: CRISIL Assigns B+ Rating to INR90cr Loan
-----------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating to the
bank facilities of Devaki Commercial Vehicles Private Limited
(DCVPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Inventory Funding
Facility 90 CRISIL B+/Stable (Assigned)
The rating reflects the extensive experience of the promoters in
the automotive dealership industry and their funding support. The
rating strength are partially offset by nascent stage of operations
and exposure to intense competition.
Key Rating Drivers & Detailed Description
Strengths:
* Extensive experience of the promoters: The promoters have more
than three decades of extensive experience in the automotive
industry and have been in automotive dealership industry for past
10 years with the dealership of Honda Two-wheelers, Kia Motors and
TATA Passenger vehicles in group companies and have developed
understanding of the dynamics of the local market. This will help
scale up operations in DCVPL.
* Funding support from promoters: The promoters have infused equity
and unsecured loans to fund the capex for the showroom and will
continue to do so. This will lead to moderate dependence on debt
levels.
Weaknesses:
* Nascent stage of operations: DCVPL has commenced its commercial
operations from October 2022. The company is yet to display a track
record of sales and stabilization of operations. Any delay in
stabilization may impact its overall credit profile.
* Susceptibility to intense competition and cyclicality in the
industry: The automotive sector is highly fragmented because of
many players as original equipment manufacturers encourage more
dealerships to improve penetration and sales. Furthermore, the sale
of commercial vehicles is closely linked to the level of economic
activity in the country.
Liquidity: Stretched
Cash accruals are expected to be over INR2.5 crore against no term
debt obligation over the medium term. In addition, it will be act
as cushion to the liquidity of the company. The firm has been
sanctioned E-Dealer Finance Scheme of Rs. 90 crores. With increase
in revenues, utilization is expected to be high over the medium
term. The promoters are likely extending unsecured loans to meet
funds requirement.
Outlook: Stable
CRISIL Ratings believes DCVPL will continue to benefit over the
medium term from its experience of the management
Rating Sensitivity factors
Upward factors
* Successful start and timely stabilization of operations leading
to revenues of more than Rs.150 crores and accruals of Rs. 2
crores
* Maintenance of moderate working capital cycle
Downward factors
* Delay in stabilization of operations, leading to low cash
accruals
* High debt for working capital leading to gearing of above 4
times
DCVPL, incorporated in July 2022, is an authorized dealer of Tata
Motors Commercial Vehicles and spare parts. It has commenced its
commercial operations from October 2022 through one showroom and
service center located at Chakan, Pune. It is owned & managed by
Mr. Dinesh Devichand Agarwal along with his brother Mr. Aman
Devichand Agarwal.
DEVKINANDAN DEVELOPERS: CRISIL Rates INR59.5cr Term Loan at B+
--------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating to the
bank facilities of Devkinandan Developers (DD).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 59.5 CRISIL B+/Stable (Assigned)
The rating reflects susceptibility to cyclicality in the real
estate sector and exposure to risks related to ongoing projects.
This weakness is partially offset by the extensive experience of DD
partners in the real estate segment.
Key Rating Drivers & Detailed Description
Weaknesses:
* Exposure to risks associated with ongoing projects: DD is
currently setting up a commercial project, Dwarkesh Peninsula, in
Ahmedabad (Gujarat). The project is about 40% complete with 30
units been booked out of the total 221 units, leading to moderate
implementation and higher sale ability-related risks. Further, the
project cost of about INR125 crore is to be majorly funded by debt.
Hence, improvement in booking progress and timely receipt of
advances will remain critical to honour debt repayments going
ahead.
* Vulnerability to cyclicality inherent in the real estate
industry: The real estate sector in India is cyclical and affected
by volatile prices, opaque transactions, and a highly fragmented
market structure. Hence, business risk profile will remain
susceptible to risks arising from any industry slowdown.
Strengths:
* Partner’s extensive experience: Benefits derived from the
partners’ experience of over a decade, their strong understanding
of local market dynamics, healthy relations with suppliers and
customers, and their funding support should continue to boost the
business.
Liquidity: Stretched
Liquidity is stretched by lower customer advances of around Rs.
4.5-5 crores till July 2022 against Rs. 55 crores of construction
cost incurred. The partners have brought in the equity and USL
funds which has supported the project advancement. The firm has
also received term debt from bank of around Rs. 59.5 crores which
will support the project going ahead. The disbursement of the same
has already started with Rs. 5 crores disbursed till date and rest
to be disbursed as per the project progresses.
However, any delay in sale of offices or realization of customer
advances due to a sharp slowdown in real estate sector can
adversely affect liquidity. Promoter's willingness to induce funds
whenever required will add cushion to the liquidity.
Outlook: Stable
CRISIL Ratings believes DD will continue to benefit from its
promoters' extensive industry experience.
Rating Sensitivity factors
Upward factors
* Higher than expected booking velocity by 20-25% leading to
healthy customer advances and cash inflows
* Timely completion of project without any time or cost overrun
Downward factors
* Weakening of financial risk profile on account of delay in the
completion of the project or significant debt-funded capital
expenditure
* Lower than expected receipt of customer advances by 15% leading
to cashflow mismatches
DD was established as partnership firm based out of Ahmedabad,
Gujarat. It undertakes residential and commercial real estate
projects. The firm is currently executing commercial project namely
– Dwarkesh Peninsula in Ahmedabad, Gujarat.
GANTA SRIRAM: ICRA Keeps B+ Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has retained the rating for the bank facilities of Ganta
Sriram Educational Society in the 'Issuer Not Cooperating'
category. The rating is denoted as "[ICRA]B+ (Stable); ISSUER NOT
COOPERATING" .
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 5.20 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term- 0.70 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 4.10 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Ganta Sriram Educational Society was established in 2007. The
society runs "Ramachandra College of Engineering" in Eluru, West
Godavari district of Andhra Pradesh. The college is affiliated to
Jawaharlal Nehru Technological University, Kakinada. The courses
run by college are recognised and approved by All India Council for
Technical Education (AICTE).
GKB OPHTHALMICS: CRISIL Hikes Rating on INR5cr Cash Debt to C
-------------------------------------------------------------
CRISIL Ratings has upgraded its ratings on the bank facilities of
GKB Ophthalmics Limited to 'CRISIL C/CRISIL A4' from 'CRISIL
D/CRISIL D'. The rating upgrade reflects track record of 90 days
of timely debt servicing by GKB.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.6 CRISIL A4 (Upgraded from
'CRISIL D')
Bank Guarantee 0.3 CRISIL A4 (Upgraded from
'CRISIL D')
Cash Credit 5 CRISIL C (Upgraded from
'CRISIL D')
Cash Credit 3.7 CRISIL C (Upgraded from
'CRISIL D')
Export Packing
Credit 0.5 CRISIL A4 (Upgraded from
'CRISIL D')
Letter of Credit 0.7 CRISIL A4 (Upgraded from
'CRISIL D')
Letter of Credit 2 CRISIL A4 (Upgraded from
'CRISIL D')
Proposed Working 0.1 CRISIL C (Upgraded from
Capital Facility 'CRISIL D')
Working Capital 1.2 CRISIL C (Upgraded from
Term Loan 'CRISIL D')
Working Capital 1 CRISIL C (Upgraded from
Term Loan 'CRISIL D')
The ratings continue to reflect modest scale of operations along
with large working capital requirements and weak debt protection
metrics. These rating weaknesses are partially offset by extensive
experience of the promoters.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations and large working capital requirement:
Although on an improving trend, the scale of operations of the
company continues to remain modest and working capital intensive as
indicated by a revenue of INR26.98 Cr in fiscal 2022 and Gross
current asset (GCA) days of 166 days as of March 31,2022. Higher
GCA days are driven by high debtor and inventory days of 81 and 71
days respectively, which are met by a stretched creditor days of
140 days as of March 31,2022. Steady increase in scale of
operations remains monitorable over the medium term.
* Weak debt protection metrics: Losses at operating level has led
to weaker debt protection metrics, as indicated by interest
coverage and net cash accruals to adjusted debt ratios of 1.10
times and 0.02 time in fiscal 2022. Improvement in the operating
efficiency thus leading to better debt protection metrics remains a
key monitorable.
Strength:
* Extensive experience of promoters: Benefits from the
three-decade-long presence of the promoters in the industry, their
strong understanding of market dynamics and healthy relationships
with suppliers and customers should continue
Liquidity: Poor
Bank limit utilization is high averaging at 99.69% for the
fund-based facilities during the last 12 months ended September
2022. Current ratio was low at 0.67 times as on March 31,2022.
Expected Net Cash Accruals of over INR0.29 crore are insufficient
to cover the debt obligation of around INR0.4-0.6 crore per annum
over the medium term, however support in the form of dividend from
subsidiary and from promoters is expected in times of distress
Rating Sensitivity factors
Upward Factors
* Growth in revenue by over 15% along with stable operating margin
resulting in an improvement in net cash accruals to meet it
repayment obligations
* Sharp and sustained improvement in working capital cycle
resulting in cushion in working capital limits
Downward Factors
* Dip in revenue or operating margin resulting in net cash accruals
to fall below INR0.15 crore
* Stretch in working capital cycle resulting in weakening of
financial risk profile and liquidity
* Lower than expected or lack of timely fund support from
promoters/subsidiaries
Incorporated in 1981, GKB commenced operations in 1983. The company
manufactures ophthalmic lenses, such as single-vision glass,
single-vision plastic, bifocal plastic and photochromic plastic
lenses. Mr KG Gupta, Mr Vikram Gupta and Mr Gaurav Gupta are the
promoters of the company.
GOLHAR GINNING: ICRA Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA has retained the rating of Golhar Ginning & Oil Pvt. Ltd. in
the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 4.75 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term– 4.10 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Long-term– 1.15 [ICRA]D; ISSUER NOT
COOPERATING;
Unallocated Rating Continues to remain under
'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Golhar Ginning & Oils Private Limited was incorporated in November
2012 and commenced business operations since December 2014. It is
in the business of ginning, pressing of cotton and crushing of
cotton seed oil. The factory is located in Hingaghat, Dist. Wardha
(Maharashtra). GGOPL is equipped with 24 ginning machines and 1
pressing machine to carry out operations. It is presently managed
by Mr. Damodar Golhar and Mr. Dhanraj Golhar.
GOVERNMENT TELE-COM: ICRA Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of The
Government Tele-communication Employees' Co-Operative Society
Limited in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]D ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 669.44 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based/TL Rating Continues to remain under
'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
The Government Telecommunication Employees' Co-operative Society
Ltd is a multi-state employee credit cooperative society of BSNL
and DoT employees. As on March 31, 2016, it had a member base of
15,261 spread over the states of Tamil Nadu, Andhra Pradesh,
Kerala, Karnataka and the Union territory of Pondicherry; however,
Tamil Nadu constituted 91% of the total member base. The society
collects thrift and other mandatory deposits and also accepts fixed
deposits from its members and raises bank term loans to extend
loans to its members. The collection of monthly thrift, other
mandatory deposits and loan instalments from the members are made
directly in the form of salary deductions by BSNL and DoT, and
remitted to the society. As on March 31, 2016, the society's total
loan portfolio and net-worth stood at INR484 crore (provisional)
and INR81 crore (provisional) respectively.
IL&FS GROUP: Commences Interim Distribution Payout
--------------------------------------------------
IANS reports that Infrastructure Leasing and Financial Services
(IL&FS) has commenced interim distribution payout with Rapid Metro
Gurgaon Rail Ltd (RMGL), an IL&FS group company.
According to the report, the Group has completed distribution of
INR623.38 crore, on an interim basis, to the secured
lenders/secured financial creditors of RMGL comprising Union Bank
of India, Bank of India, Indian Bank, Punjab & Sind Bank, UCO Bank,
Bank of Baroda, Punjab National Bank and Indian Overseas Bank.
The total claims of these lenders was INR715 crore.
This distribution on an interim basis, thus, translates in a
recovery of around 83% to these creditors, IANS notes. Disbursement
of additional amounts to the unsecured financial creditors and
unsecured creditors is also under process.
IL&FS board had approved this interim distribution at its board
meeting held on November 2. This is the first payout by IL&FS under
the interim distribution framework wherein it is proposed to
distribute an aggregate amount of INR16,361 crore across select
Group companies, the report says.
IANS relates that the proposed distribution of INR16,361 crore
which would include INR11,296 crore of cash and INR5,065 crore of
Invit unit is being undertaken as per the interim distribution
framework approved by NCLAT (national company law appellate
tribunal) in June this year.
According to IANS, the board announced that a significant part
(Rs55,000 crore) of the overall resolution (of INR61,000 crore)
would be completed by this year (subject to approvals).
However, the final resolution of the remaining IL&FS group entities
(resolution value INR6,000 crore) is likely to take a significant
amount of time due to the complexities involved in the process.
Hence, the interim distribution was proposed to facilitate payout
to all class of creditors (as per NCLAT-approved process) with a
condition that any excess payouts at the interim stage, will have
to be returned to the group at or prior to the final distribution
stage, IANS states.
About IL&FS
Infrastructure Leasing & Financial Services Limited (IL&FS) --
https://www.ilfsindia.com/ -- is an infrastructure development and
finance company based in India. It focuses on the development and
commercialization of infrastructure projects, and creation of value
added financial services. The company operates in Financial
Services, Infrastructure Services, and Others segments.
The Indian government, in October 2018, stepped in to take control
of crisis-ridden IL&FS by moving the National Company Law Tribunal
(NCLT) to supersede and reconstitute the board of the firm which
has defaulted on a series of its debt payments, according to Indian
Express. This was said to be an attempt to restore the confidence
of financial markets in the credibility and solvency of the
infrastructure financing and development group.
IL&FS TRANSPORTATION: ICRA Keeps D Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has retained the Long term and Short term ratings for the of
IL&FS Transportation Networks Limited in the 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA]D/[ICRA]D;
ISSUER NOT COOPERATING" .
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 490.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Short-term– 320.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
CP/CD/STD- 1000.00 [ICRA]D; ISSUER NOT COOPERATING;
Commercial Continues to remain under the
Paper 'Issuer Not Cooperating'
Category
NCD/Debtbonds/ 3963.00 [ICRA]D; ISSUER NOT COOPERATING;
NCD/LTD Continues to remain under the
'Issuer Not Cooperating'
Category
NCD/Debt- 760.00 [ICRA]D; ISSUER NOT COOPERATING;
Preference Continues to remain under the
Shares 'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Incorporated in 2000, IL&FS Transportation Networks Limited (ITNL)
is a surface transportation infrastructure company and
Build-Operate-Transfer (BOT) road operator in India. The company is
promoted by Infrastructure Leasing & Financial Services Limited
which holds 71.92% equity stake in ITNL as on June 30, 2019. Since
inception, ITNL has been involved in the development, construction
and implementation, operation and maintenance of national and state
highways, roads, flyovers and bridges. ITNL, through its
wholly-owned subsidiary in Singapore, namely ITNL International Pte
Ltd (IIPL) holds 100% equity stake in Elsamex S.A, a Spanish O&M
operator which provides maintenance services for infrastructure
facilities largely in the roads sector in Spain and the rest of
Europe and 49% stake (51% being held by Chongqing Expressway Group
Company Limited) in Chongqing YuHe Expressway Company Limited
(CYECL), a toll-based road project in south-west China which has a
long operating history of over nine years.
JAIBALAJI STEEL: CRISIL Withdraws B- Rating on INR13.5cr Loan
-------------------------------------------------------------
CRISIL Ratings has withdrawn its ratings on the bank facilities of
Sri Jaibalaji Steel Rolling Mills Private Limited (SJSRML) on the
request of the company and receipt of a no objection certificate
from its bank. The rating action is in line with CRISIL Ratings’
policy on withdrawal of its ratings on bank loans.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 13.5 CRISIL B-/Stable/Issuer Not
Cooperating (Withdrawn)
Proposed Fund- 4.5 CRISIL B-/Stable/Issuer Not
Based Bank Limits Cooperating (Withdrawn)
CRISIL Ratings has been consistently following up with SJSRML for
obtaining information through letters and emails dated June 20,
2022 and August 18, 2022, among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
cooperation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.’
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SJSRML. This restricts CRISIL
Ratings’ ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
SJSRML is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the rating on bank
facilities of SJSRML continues to be 'CRISIL B-/Stable Issuer Not
Cooperating'.
Sri Jaibalaji Steel Rolling Mills Limited (SJSRML) is an Uttar
Pradesh-based company, established and promoted in the year 2010 by
Mr. Aakash Kumar, Shashank Jain and Mr. Gaurav Swarup. The company
is engaged into manufacturing of TMT bars through its manufacturing
facility at Muzzafarnagar with an installed capacity of 60000 MTPA
per annum, remaining utilized at around 70%.
JET AIRWAYS: Probe Into Executive No Impact on Acquisition Deal
---------------------------------------------------------------
Bloomberg News reports that the investigations into Florian
Fritsch, one of the two executives seeking to get bankrupt Jet
Airways India Ltd. back in the air through a bankruptcy process,
will not affect the rescue plan for the airline, according to his
firm.
"These investigations have no impact on the acquisition of Jet
Airways," Kalrock Capital Partners, Mr. Fritsch's investment
company said in a statement. Neither Kalrock nor Jet Airways have
connections with ongoing investigations or the charges, it said.
Bloomberg News last week reported multiple properties linked to Mr.
Fritsch were raided by prosecutors in a criminal investigation.
Kalrock said on Nov. 14 that Mr. Fritsch is assisting in certain
investigations initiated by regulatory agencies in Liechtenstein,
Switzerland, and Austria.
A potential revival of Jet Airways would be the first for a carrier
in India under new bankruptcy laws, and could boost Prime Minister
Narendra Modi's image as a business-friendly leader.
According to Bloomberg, the latest legal dispute is a fresh blow to
Jet Airways that has faced delays in its comeback after collapsing
amid debt in 2019. Once India's top private carrier, Jet Airways,
promised to start flights by March this year but it has struggled
to place orders for new aircraft with lenders reluctant to allow it
to take on fresh liabilities.
Bloomberg relates that the disputes are "commercial" in nature,
Kalrock said. The probe was initiated based on anonymous complaints
related to businesses where Mr. Fritsch is one of the financial
investors in his personal capacity. Mr. Fritsch has filed
complaints with a high court regarding the disputes and complaints
being investigated, according to the statement.
The consortium was picked to bring back Jet Airways to the air,
made up of Mr. Fritsch as an investor along with his Dubai-based
partner Murari Lal Jalan, with the group "committed" towards the
airline, it said.
About Jet Airways
Based in Mumbai, India, Jet Airways (India) Limited was one of
India's top airlines founded by Naresh Goyal. It provided
passenger and cargo air transportation services as well aircraft
leasing services. It operated flights to 66 destinations in India
and international countries.
Jet Airways on April 17, 2019, halted all flight operations after
its lenders rejected its plea for emergency funds.
On June 20, 2019, the National Company Law Tribunal (NCLT), Mumbai
Bench, accepted an insolvency petition against Jet Airways filed by
its creditors as they attempt to recover some of their dues.
Ashish Chhawchharia of Grant Thornton India has been named as the
resolution professional in the case. Law firm Cyril Amarchand
Mangaldas will represent the interests of the lenders' consortium,
according to a Reuters report.
Creditors have filed claims worth INR30,907 crore, according to
Financial Express. The RP has so far admitted claims worth over
INR14,000 crore.
In July last year, the Jalan-Kalrock consortium was declared as the
winning bidder for Jet Airways. In June last year, the NCLT
approved the consortium's resolution plan for the troubled
carrier.
Jet Airways got its air operator certificate revalidated in May
this year. The Mumbai-based company had plans to resume operations
in October but has not provided any official comments on the same,
according to Financial Express.
K.P. BLUE: ICRA Keeps B+ Debt Rating in Not Cooperating Category
----------------------------------------------------------------
ICRA has retained the rating for the bank facilities of K.P. Blue
Metal in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]B+ (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 10.97 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term- 4.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 0.03 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Established in 2007, KPBM is a part of the Geekay Group of
companies, which is a well-established leading stone crusher based
in Vellore. The company was initially set up as a partnership
entity with 10 partners. Subsequently, it was reconstituted in 2010
with four partners consisting of the promoter Mr. Gandhi and his
immediate family. KPBM has industrial equipment and machineries
with VSI technology that helps in mining construction aggregates.
At present, it is mining stone from the quarry located in Vellore,
leased out from the Government of Tamil Nadu.
KANYA IRON: CRISIL Moves B+ Debt Ratings from Not Cooperating
-------------------------------------------------------------
Due to inadequate information and in line with the Securities and
Exchange Board of India guidelines, CRISIL Ratings had migrated its
ratings on the bank facilities of Sri Kanya Iron and Steel Private
Limited (SKISPL) to 'CRISIL B+/Stable Issuer Not Cooperating'.
However, the firm’s management has subsequently started sharing
the information necessary for a comprehensive review of the
ratings. Consequently, CRISIL Ratings is migrating the ratings to
'CRISIL B+/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL B+/Stable (Migrated
from 'CRISIL B+/Stable ISSUER
NOT COOPERATING’)
Long Term Loan 8.5 CRISIL B+/Stable (Migrated
from 'CRISIL B+/Stable ISSUER
NOT COOPERATING’)
Long Term Loan 4.2 CRISIL B+/Stable (Migrated
from 'CRISIL B+/Stable ISSUER
NOT COOPERATING’)
Proposed Long Term 0.3 CRISIL B+/Stable (Migrated
Bank Loan Facility from 'CRISIL B+/Stable ISSUER
NOT COOPERATING’)
The rating reflects below-average financial risk profile marked by
its modest net worth, high TOL/TNW, and average debt protection
metrics. The rating of the firm is also constrained on account of
its exposure to intense competition in the steel trading business
resulting in its low profitability margins. These weaknesses are
partially offset by extensive experience of promoter in the steel
trading business, its established relations with customers and
moderate working capital management.
Key Rating Drivers & Detailed Description
Weaknesses:
* Below average financial risk profile: As on March 31, 2022
networth was at Rs. 14 crores. High TOL/TNW of 5 times as on March
31, 2022 and estimated TOL/TNW of 4.27 times as on March 2023. Debt
protection metrics were average as indicated by its NCATD and
interest coverage ratio of 0.06 and 1.80 times for fiscal 2022.
* Susceptibility to price fluctuations: Price of steel depends on
demand from the real estate and infrastructure activities in a
particular region, which is linked to economic cycles. Any slowdown
in economic activity or investments in infrastructure and housing
could hit the operations of SKISPL.
Strengths:
* Extensive experience of the promoters in the steel trading
business, and established relations with customers: SKISPL
promoters have an extensive experience of more than 2 decades in
the steel trading industry and has enabled the promoters to
establish strong relationship with customers and suppliers.
* Moderate working capital management: Working capital management
has been moderate as reflected in GCA days of 50 days during 2022
fiscal. The company maintains a modest inventory of 17 days.
Receivables were moderate at 27 days aided by timely payment from
the customers. Gross current assets days likely to remain stable in
the medium term.
Liquidity: Poor
Bank limit utilization averaged a high 95% over the 12 months
through September 2022. Cash accrual is expected to be over INR3-6
crore, which is sufficient to meet term debt obligation of INR2-5
crore over the medium term.
Current ratio stood moderate at 1.25 times as on March 31, 2022.
Outlook: Stable
CRISIL Ratings believes that SKISPL will continue to benefit over
the medium term from its promoters' extensive industry experience
and its established relations with customers.
Rating Sensitivity Factors
Upward factors
* Improvement in financial risk profile, especially TOL/TNW
reducing below 4.5 times
* Improvement in liquidity supported by enhancement in working
capital limit.
Downward factors
* Stagnant business due to weak demand or a stretch in receivables
* Stretch in GCAs beyond 90 days.
SKISPL was incorporated on July 26, 2019. The company was converted
from the proprietorship firm 'Sri Kanya Corporation', which was
established in 1994 he proprietor of the firm Mr. D Srinivas is the
managing director of the Company.
MATHURA FIBRES: ICRA Assigns B+ Rating to INR20cr LT Loan
---------------------------------------------------------
ICRA has assigned rating to the bank facilities of Mathura Fibres
and Cotton Industries (MFCI), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term
Fund Based–WC 20.00 [ICRA]B+(Stable); assigned
Long Term
Fund Based–
Term Loan 7.65 [ICRA]B+(Stable); assigned
Rationale
The rating assigned to MFCI factors in the long experience of the
partners in the cotton ginning industry and the location of the
firm's manufacturing plant in proximity to raw material sources in
Telangana, which is one of the top cotton-producing states in
India. However, the rating remains constrained due to the firm's
weak financial profile, characterized by leveraged capital
structure, stretched liquidity position and weak debt coverage
indicators. Further, the rating factors in the vulnerability of the
firm's profitability to adverse fluctuations in raw material prices
(raw cotton), considering the inherently low value-added and
seasonal nature of ginning operations and intense competition in
the industry. Further, MFCI's operations also remain exposed to
regulatory risks related to the minimum support price (MSP), which
is set by the Government.
The Stable outlook on the [ICRA]B+ rating reflects ICRA's opinion
that MFCI's financial risk profile will remain stable with modest
debt coverage metrics amid increasing repayment obligations, though
supported by need-based infusion of funds by the partners. The firm
is likely to continue to benefit from the experience of the
partners in the cotton ginning industry and maintain its business
position.
Key rating drivers and their description
Credit strengths
* Extensive experience of partners in cotton industry: The
promoters have a long experience of around three decades in the
cotton ginning industry, which has helped them in establishing long
associations with their suppliers and buyers in the industry.
* Location-specific advantage: The firm benefits in terms of low
transportation cost and easy access to raw cotton due to the
strategic location of its plant in Adilabad, Telangana, an area of
high cotton acreage and quality cotton crop.
Credit challenges
* Weak financial risk profile characterized by low profit margins,
leveraged capital structure, and weak debt coverage metrics: MFCI's
profit margins have remained low over the years due to low
value-added nature of its operations. The operating margin of the
firm declined to 4.9% in FY2022 from 9.3% in FY2021 due to higher
raw material costs during the fiscal. While the gearing improved to
3.9 times as on March 31, 2022 from 4.7 times as on March 31, 2021,
aided by capital infusion of INR0.6 crore by the partners and
reduction in short-term debt, the capital structure remained
leveraged. MFCI's debt metrics also remained weak due to low
profitability and high debt levels, as reflected by a total
debt/OPBIDTA of 7.3 times in FY2022 (7.6 times in FY2021) and Net
Cash Accruals/Total Debt remaining below 2% in the last five
fiscals. Owing to rising repayment obligations towards Emergency
Credit Line Guarantee Scheme (ECLGS) loans availed to tide over
pandemic-led liquidity pressure, the firm's debt coverage metrics
are expected to remain weak.
* Profitability remains vulnerable to movements in prices of raw
cotton: MFCI's profitability remains exposed to fluctuations in raw
material (raw cotton) prices, which are driven by various factors
such as seasonality, climatic conditions, international demand and
supply situation, and export policy. The firm is also exposed to
regulatory risks with respect to the minimum support price (MSP)
for cotton, which is set by the Government every year.
* Intense competition and fragmented industry structure: Low
value-added nature of the products and intense competition from
other players in the fragmented cotton ginning industry limit
MFCI's bargaining power and pricing flexibility, thereby exerting
pressure on margins.
* Risks associated with partnership constitution of the firm: ICRA
notes that MFCI is a partnership firm and any significant
withdrawal of capital by the partners may adversely impact the
firm's net worth and liquidity position. In this context, it has
been noted that the partners have ensured need-based fund infusion
in the firm in the past, which provides comfort.
Liquidity position: Stretched
MFCI's liquidity position is stretched, as reflected in marginal
cash and bank balances of less than INR 0.1 crore as of March 2022,
and consistently high utilisation of its fund-based working capital
facilities in the last 12 months. ICRA notes that the firm has
sizeable repayment obligations in the current and upcoming fiscals
for its term borrowings. While the liquidity in the immediate
future is expected to be supported by liquidation of inventory at
healthy realisations, the firm's ability to scale up operations
while effectively managing working capital cycle will remain
crucial for its liquidity profile, going forward. ICRA expects
inadequate cash flow generation from operations and increasing
repayment obligations to necessitate infusion of fresh capital to
maintain adequate liquidity position.
Rating sensitivities
Positive factors – ICRA could upgrade MFCI's rating if the firm
significantly scales up its operations and profitability, leading
to an improvement in its credit metrics, and achieves a better
liquidity position.
Negative factors –Pressure on MFCI's rating could arise if there
is a decline in revenues and profitability, or a stretch in the
working capital cycle, which results in a further deterioration in
its credit metrics and liquidity.
Incorporated in 2013, Mathura Fibres and Cotton Industries (MFCI)
is a partnership firm involved in ginning and pressing of raw
cotton to produce cotton bales and cotton seeds. MFCI also has a
facility for crushing cotton seeds to produce cotton seed oil and
cake. The firm's unit is located in Adilabad (Telangana) and is
owned and managed by Mr. Ganesh Mukkawar and Mrs. Vijaysri
Mukkawar. The firm has a manufacturing facility with a ginning
capacity of 2,600 quintal per day and installed pressing capacity
of 500 bales per day.
NARENDRA DEV: ICRA Keeps B+ Debt Rating in Not Cooperating
----------------------------------------------------------
ICRA has retained the short and long term ratings for the bank
facilities of Narendra Dev (Railways) in the 'Issuer Not
Cooperating' category. The ratings are denoted as "[ICRA]B+
(Stable)/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Short Term- 28.70 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Long Term- 11.98 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Narendra Dev (Railways) is a partnership firm established in the
year 1965 by Late Shri Narendra Dev Gupta. Now, the firm is managed
by Mr. Ajay Kumar Agarwal, Mr. Maheshwar Dayal, Ms Mansi Agarwal,
Mr. Madhup Gupta and Mr. Ashish Agarwal. The firm is engaged in the
construction and maintenance of civil works including construction
of main line railway tracks, platforms, railway siding, pre
stressed concrete structures, girder and pipe line bridges, and
other construction work for North Eastern Railways, North Central
Railways and U.P. Avas Vikas Parishad (Registered in section 'A').
NETMATRIX CROP: ICRA Keeps B+ Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has retained the short-term and long-term ratings for the bank
facilities of Netmatrix Crop Care Limited in the 'Issuer Not
Cooperating' category. The ratings are denoted as "[ICRA]B+
(Stable)/ [ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Short Term- 3.50 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Long Term- 38.50 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Long Term- 16.95 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term- 11.25 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Incorporated in 2000, Netmatrix Crop Care Limited (NMCCL, formerly
Netmatrix Limited) is a manufacturer of crop-care
products, primarily Chlorpyrifos Technical which is the single
largest used organophosphate insecticide. The company operates
through its manufacturing facilities at Vapi, Gujarat and
Visakhapatnam, Andhra Pradesh. The company is managed by Mr. B.
Chandrasekar, who has more than 25 years of experience in the
agro-chemical industry.
NOOR ICE: ICRA Keeps B+ Debt Rating in Not Cooperating Category
---------------------------------------------------------------
ICRA has retained the Long-Term and Short-Term ratings of Noor Ice
& Cold Storage Private Limited in the 'Issuer Not
Cooperating' category. The ratings are denoted as
[ICRA]B+(Stable)/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 4.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 4.70 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term- (0.50) [ICRA]B+ (Stable) ISSUER NOT
Interchangeable COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Short Term- 28.50 [ICRA]A4 ISSUER NOT
Fund Based COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Long Term/ 0.30 [ICRA]B+(Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain
under issuer not cooperating
category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Incorporated in February 1998, NICSPL is engaged in processing and
exporting seafood such as lobster, shrimp, pomfret, ribbon fish and
croaker fish. The company's processing units are located at Taloja
in the Raigad district of Maharashtra, with an installed processing
capacity of 88 Metric Tonnes Per Day. The company is predominantly
an export-oriented player with more than 95% of its revenues
generated by overseas markets.
R.H. SORTEX: ICRA Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
ICRA has retained the rating of R.H. Sortex Rice Mills Private
Limited in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 2.12 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Long-term– 3.50 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
RHS was established in 2011 as a private limited company. The
company is primarily involved in the milling of rice with an
installed capacity of 8 tonne per hour at Gorakhpur, Uttar Pradesh.
The company is professionally managed by Mr. Sukhdev Jaiswal.
RAVINDRA RICE: CRISIL Lowers Rating on INR16.5cr Cash Loan to D
---------------------------------------------------------------
CRISIL Ratings has downgraded the ratings of Ravindra Rice and
General Mills (RRGM)to 'CRISIL D Issuer Not Cooperating' from
'CRISIL B/Stable Issuer Not Cooperating'. The rating downgrade is
on basis of delays in servicing debt obligations as best available
information in the public domain.
Amount
Facilities (INR Crore) Ratings
---------- ---------- -------
Cash Credit 16.5 CRISIL D (ISSUER NOT COOPERATING;
Downgraded from 'CRISIL B/Stable
ISSUER NOT COOPERATING')
CRISIL Ratings has been consistently following up with RRGM for
obtaining information through letters and emails dated November 1,
2022 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of RRGM, which restricts CRISIL
Ratings’ ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RRGM
is consistent with 'Assessing Information Adequacy Risk’. CRISIL
Ratings has downgraded the ratings to 'CRISIL D Issuer Not
Cooperating' from 'CRISIL B/Stable Issuer Not Cooperating', the
rating downgrade is on basis of delays in servicing debt
obligations as best available information in the public domain.
RRGM is a partnership firm promoted by Mr. Ravindra and his family
members. The firm is primarily involved in milling of Basmati rice.
It is also involved in converting semi-processed rice into
parboiled Basmati rice. RRGM's milling unit is based out of
Jalalabad district, Ferozpur in close proximity to the local grain
market.
RELIANCE CAPITAL: Birla Sun Life, Nippon Life Merger Talks Fail
---------------------------------------------------------------
The Hindu BusinessLine reports that talks between Aditya Birla
Capital and Japan-based Nippon Life for a merger failed with the
latter not agreeing to a reduced stake in the life insurance
venture of debt-ridden Reliance Capital post resolution, sources
said.
BusinessLine relates that Nippon Life, the 49% partner in Reliance
Nippon Life Insurance Company (RNLIC), was considering a merger
between Reliance Nippon Life and Birla Sun Life Insurance, a part
of Aditya Birla Capital.
RNLIC is a subsidiary of debt-ridden Reliance Capital, which is
undergoing the insolvency resolution process.
According to the report, sources said the Nippon Life stake would
have been diluted to under 10% post the merger. The Japanese firm
is believed to be not comfortable with the idea of losing all the
shareholder and governance rights.
According to IRDAI guidelines, an entity cannot float two life or
non-life insurance entities. Thus, it would be mandatory for Birla
Sun Life to merge with Reliance Nippon Life if its promoter emerges
a successful bidder for RCap, BusinessLine relays.
The last date for submitting binding bids for Reliance Capital and
its subsidiaries is November 28.
BusinessLine says RCap had offered two options to the bidders.
Under the first, companies could bid for RCap, including its eight
subsidiaries. The second option gave the bidders freedom to bid for
RCap subsidiaries individually or in a combination.
RCap has eight businesses that are on the block, the report notes.
These include general insurance, life insurance, health insurance,
securities business and asset reconstruction.
About Reliance Capital
Headquartered in Mumbai, India, Reliance Capital Limited --
https://www.reliancecapital.co.in/ -- a non-banking financial
company, primarily engages in lending and investing activities in
India, Singapore, and Mauritius. The company operates through
Finance & Investment, General Insurance, Life Insurance, Commercial
Finance, Home Finance, and Others segments. It offers life, health,
and general insurance products; brokerage and distribution
services, including stock broking, wealth management, and third
party distribution; and commercial and home finance services, such
SME, retail, microfinance, renewable, affordable housing, and home
loans, as well as loans against property and construction finance.
The company also provides asset reconstruction, institutional
broking, and proprietary investments services, as well as other
financial and allied services. The company was formerly known as
Reliance Capital & Finance Trust Limited and changed its name to
Reliance Capital Limited in January 1995.
On Nov. 29, 2021, the Reserve Bank of India superseded Reliance
Capital's board following payment defaults and governance issues,
and appointed Nageswara Rao Y as the administrator for the
bankruptcy process, Financial Express said. The regulator also
filed an application for initiation of Corporate Insolvency
Resolution Process (CIRP) against the company before the National
Company Law Tribunal's (NCLT) Mumbai bench.
In an order dated Dec. 6, 2021 of the National Company Law
Tribunal, Mumbai (NCLT), corporate insolvency resolution process
has been initiated against Reliance Capital as per the provisions
of the Insolvency and Bankruptcy Code (IBC), 2016.
Reliance Capital owes its creditors over INR19,805 crore, majority
of the amount through bonds under the trustee Vistra ITCL India,
The Economic Times of India said.
In February this year, RBI appointed administrator invited EoIs for
sale of Reliance Capital assets and subsidiaries.
SAHU HYDRO: ICRA Keeps B+ Debt Ratings in Not Cooperating
---------------------------------------------------------
ICRA has retained the rating of Sahu Hydro Power Private Limited in
the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 7.60 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Long Term- 10.85 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Sahu Hydro Power Private Limited (referred as SHPPL) is a private
limited company promoted by Indus group to develop, own and operate
a 5 MW small hydro power (SHP) project at Kurtha in Chamba District
of Himachal Pradesh (HP). The company is promoted by Indus
Renewable Energy India Private Limited (IREIPL). Indus Power and
Infrastructure LLC (Indus USA), through Indus Power &
Infrastructure Mauritius (Indus Mauritius) holds stake in IREIPL.
Indus USA (holding company) is held by three Indian promoters
(combined stake of 30%), Mr. Lingareddy Venkata Prasad, Mr.
Nagarjun Valluripalli, and Mr. Ramaraju Raudraraju and a hedge
fund, Wexford Capital LLC (Wexford, 70% stake). The company has
successfully commissioned Kurtha project in December 2014 and is
backed by PPA with Govt of Himachal Pradesh State Electricity Board
(HPSEB) for a period of 40 years at a fixed tariff of INR3.23 per
unit.
SOVA ELECTROCASTING: CRISIL Lowers Rating on INR25cr Loans to D
---------------------------------------------------------------
CRISIL Ratings has downgraded the rating of Sova Electrocasting
Limited (SEL) to 'CRISIL D Issuer Not Cooperating' from 'CRISIL
BB-/Stable', as company has delayed servicing its debt obligation.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 16 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL BB-/Stable')
Cash Credit 9 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL BB-/Stable')
CRISIL Ratings has been consistently following up with SEL for
obtaining information through email dated August 30, 2022 and
September 29, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the firm. Such non
cooperation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of the entity, which restricts its
ability to take a forward-looking view on the entity's credit
quality.
CRISIL Ratings believes the rating action on SEL is consistent with
'Assessing Information Adequacy Risk'. Based on the best available
information and confirmation from the management, CRISIL Ratings
has downgraded the rating to 'CRISIL D Issuer Not Cooperating' from
'CRISIL BB-/Stable', as company has delayed servicing its debt
obligation.
Incorporated in 1997, SEL was taken over by the present management
in July 2006. The company manufactures thermo-mechanically treated
(TMT) bars. The company is promoted by Mr. Amit Agarwal, Mr. Shyam
Bihari & Mr. Naresh Bihari and is based out of Durgapur, West
Bengal.
SRINIVASA HAIR: ICRA Keeps B+ Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has retained the rating of Srinivasa Hair Industries in the
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 8.31 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term- 15.00 [ICRA]B+ (Stable) ISSUER NOT
Non Fund Based- COOPERATING; Rating continues
Others to remain under 'Issuer Not
Cooperating' category
Long Term- 0.19 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Long Term- 25.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Established by Mr. KK Gupta & family member in 1983, Srinivasa Hair
Industries (SHI) is primarily engaged in the Export (trading) of
human hair and procures both remy (tonsured hair) as well as the
non-remy variety (fallen hair) for its business model. After
processing the hair, the hairs are exported to overseas
manufacturers of hair extensions, wigs, toupees, hair pieces and
hair weavings. The firm exports to more than 10 markets, with
China, Brazil, Italy, Spain and the USA being major markets.
SUNFLORA VITRIFIED: ICRA Keeps B+ Debt Ratings in Not Cooperating
-----------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Sunflora
Vitrified Pvt. Ltd. in the 'Issuer Not Cooperating' category. The
ratings are denoted as "[ICRA]B+(Stable)/[ICRA]A4 ISSUER NOT
COOPERATING" .
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based– 15.90 [ICRA]B+(Stable); ISSUER NOT
Term Loan COOPERATING; Rating continues
to remain under the 'Issuer Not
Cooperating' category
Fund-based– 8.50 [ICRA]B+(Stable); ISSUER NOT
Cash Credit COOPERATING; Rating continues
to remain under the 'Issuer Not
Cooperating' category
Non fund based 5.50 [ICRA] A4; ISSUER NOT
Bank Guarantee COOPERATING; Rating Continues
to remain under issuer not
cooperating category
Unallocated 4.10 [ICRA]B+(Stable)/[ICRA]A4;
Limits ISSUER NOT COOPERATING;
Non-Fund Based Rating Continues to remain
under issuer not cooperating
category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Sunflora Vitrified Pvt. Ltd. was incorporated in January 2014 as a
private limited company and commenced operations in November 2014.
SVPL is a vitrified tiles manufacturer with its plant situated at
Wankaner in Morbi district, Gujarat. The company has an installed
capacity to manufacture around 20 lakh boxes (around 71346 metric
tonnes) of vitrified tiles per annum sized 600X600 mm.
SVPL is promoted and managed by Mr. Biren Bhimani along with other
directors- Mr. Dharamshibhai Patel, Mr. Narendrabhai Bhimani, Mr.
Rameshbhai Bhimani and Mr. Jayantibhai Bhimani who have a vast
experience of around 33 years in the ceramic industry. They are
also associated with other family-owned partnership firms involved
in manufacturing ceramic wall tiles, floor tiles, ceramic clay and
craft paper.
=====================
N E W Z E A L A N D
=====================
BUTT SNORKELER: Creditors' Proofs of Debt Due on Dec. 9
-------------------------------------------------------
Creditors of Butt Snorkeler Australasia Limited and Escape Rooms
Takapuna Limited are required to file their proofs of debt by Dec.
9, 2022, to be included in the company's dividend distribution.
The companies commenced wind-up proceedings on Nov. 4, 2022.
The companies' liquidator is:
Digby John Noyce
RES Corporate Services Limited
PO Box 301890
Albany
Auckland 0752
FS GROUP: Court to Hear Wind-Up Petition on Nov. 21
---------------------------------------------------
A petition to wind up the operations of FS Group Limited will be
heard before the High Court at Hamilton on Nov. 21, 2022, at 10:45
a.m.
Q.C.D. Limited filed the petition against the company on Oct. 26,
2022.
The Petitioner's solicitor is:
Jeffrey Gray Ussher
Level 19, 191 Queen Street
Auckland
LAKEWOOD PLAZA: Court to Hear Wind-Up Petition on Nov. 21
---------------------------------------------------------
A petition to wind up the operations of Lakewood Plaza Limited
Partnership will be heard before the High Court at Hamilton on Nov.
21, 2022, at 2:15 p.m.
Du Val Developments Limited filed the petition against the company
on Oct. 4, 2022.
The Petitioner's solicitor is:
Howard Thompson
McMahon Butterworth Thompson Lawyers
Level 1, 5 High Street
Auckland
MECH FELLING: Court to Hear Wind-Up Petition on Dec. 14
-------------------------------------------------------
A petition to wind up the operations of Mech Felling Limited will
be heard before the High Court at Gisborne on Dec. 14, 2022, at
9:30 a.m.
Blackburne Group LP filed the petition against the company on
Oct. 19, 2022.
The Petitioner's solicitor is:
Jeffrey Gray Ussher
Level 19, 191 Queen Street
Auckland
MILFORD INFRASTRUCTURE: Creditors' Proofs of Debt Due on Jan. 8
---------------------------------------------------------------
Creditors of Milford Infrastructure NZ Limited are required to file
their proofs of debt by Jan. 8, 2023, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Nov. 8, 2022.
The company's liquidators are:
Christopher Carey McCullagh
Stephen Mark Lawrence
PKF Corporate Recovery & Insolvency (Auckland) Limited
PO Box 3678
Auckland 1140
=================
S I N G A P O R E
=================
FS AUSTRALIA: Creditors' Proofs of Debt Due on Dec. 12
------------------------------------------------------
Creditors of FS Australia Property 2 Pte. Ltd. are required to file
their proofs of debt by Dec. 12, 2022, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Nov. 9, 2022.
The company's liquidators are:
Leow Quek Shiong
Gary Loh Weng Fatt
Seah Roh Lin
c/o BDO Advisory Pte. Ltd.
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
HO BEE: Creditors' Proofs of Debt Due on Dec. 9
-----------------------------------------------
Creditors of Ho Bee (Pasir Ris) 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. 7, 2022.
The company's liquidator is:
Tan Chin Ren
Tan, Chan & Partners
26 Eng Hoon Street
Singapore 169776
LEGACY WINE: Creditors' Proofs of Debt Due on Dec. 10
-----------------------------------------------------
Creditors of Legacy Wine & Spirits Pte. Ltd. are required to file
their proofs of debt by Dec. 10, 2022, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Nov. 3, 2022.
The company's liquidators are:
Seah Chee Wei
c/o 60 Paya Lebar Road
#08-05 Paya Lebar Square
Singapore 409051
MERX AVIATION: Creditors' Proofs of Debt Due on Dec. 12
-------------------------------------------------------
Creditors of Merx Aviation Singapore Pte. Ltd. are required to file
their proofs of debt by Dec. 12, 2022, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Nov. 3, 2022.
The company's liquidators are:
Ong Kok Yeong David
c/o Tricor Singapore Pte. Ltd.
80 Robinson Road #02-00
Singapore 068898
SILVER FACTORY: Commences Wind-Up Proceedings
---------------------------------------------
Members of Silver Factory Technology Pte Ltd, on Nov. 1, 2022,
passed a resolution to voluntarily wind up the company's
operations.
The company's liquidators are:
Goh Wee Teck
Ng Kian Kiat
8 Wilkie Road
#03-08 Wilkie Edge
Singapore 228095
=====================
S O U T H K O R E A
=====================
ASIANA AIRLINES: Britain Raises Concern Over Korean Air Merger
--------------------------------------------------------------
Yonhap News Agency reports that Korean Air Co. said Nov. 15 that
Britain's antitrust regulator has expressed concerns over its
planned integration with smaller local rival Asiana Airlines Inc.,
citing monopoly worries on routes between the two countries.
In a statement released Nov. 14, Britain's Competition and Markets
Authority (CMA) said the buyout of Asiana by Korean Air could lead
to higher prices for passengers flying between London and Seoul, as
well as impacting air cargo services, Yonhap relates.
"Korean Air and Asiana Airlines are the two main players on the
London to Seoul route and the deal risks UK customers and
businesses paying over the odds or receiving a lower quality of
service," Colin Raftery, senior mergers director at the CMA, said
in the statement.
Should Korean Air and Asiana Airlines fail to address our concerns,
this deal will progress to a more in-depth investigation, he said,
Yonhap relays.
In response, Korean Air said, "We are on the right track to
finalize the process and will soon submit the updated remedies
after discussions with the CMA."
According to Yonhap, the national flag carrier said it will
continue to cooperate closely with the CMA and the remaining
authorities to complete the merger process.
In January last year, Korean Air submitted documents to antitrust
regulators in 14 countries for the review of its combination with
Asiana, Yonhap recounts.
The company has received approval from nine countries -- Australia,
South Korea, Singapore, Vietnam, Thailand, Turkey, Taiwan, Malaysia
and the Philippines -- so far for the integration while awaiting
the go-ahead from five countries -- China, Japan, Britain, the
European Union and the United States.
Korean Air, currently the world's 18th-largest airline by fleet,
will become Asiana's biggest shareholder with a 63.9 percent stake
if the acquisition is completed.
In November 2020, Korean Air signed a deal to acquire the
controlling stake in Asiana in a deal valued at KRW1.8 trillion
(US$1.5 billion) that would create the world's 10th-biggest airline
by fleet.
Yonhap says the nation's two full-service carriers account for a
combined 40 percent of passenger and cargo slots at Incheon
International Airport, South Korea's main gateway, below the level
that constitutes a monopoly.
Korean Air aims to launch a merged entity with Asiana in 2024 after
completing a takeover process by next year, vowing to streamline
their routes and reduce maintenance costs.
About Asiana Airlines
Headquartered in Osoe-Dong Kangseo-Gu, South Korea, Asiana Airlines
Incorporated is engaged in air transportation, engineering,
construction, facilities, electricity, ground handling, catering,
communication, logo products and e-business. Asiana Airlines is a
unit of the Kumho Asiana Group, a South Korean conglomerate whose
business portfolio includes tire manufacturing and chemical
production.
State lenders Korea Development Bank and the Export-Import Bank of
Korea planned to inject a combined KRW1.7 trillion into Asiana to
help the airline stay afloat. In self-help measures, Asiana has
had all of its 10,500 employees take unpaid leave for 15 days a
month since April 2020 until business circumstances normalize,
Yonhap noted. Asiana's executives have also agreed to forgo 60% of
their wages, though no specific time frame was given for how long
the pay cuts will remain in effect.
In November 2020, Korean Air said it will acquire Asiana Airlines
in a deal valued at KRW1.8 trillion that could create the world's
10th-biggest airline by fleets, Yonhap said.
===========
T A I W A N
===========
[*] Fitch Affirms 8 Taiwanese Standalone Securities Firms' Ratings
------------------------------------------------------------------
Fitch Ratings has affirmed the ratings on eight Taiwanese
securities companies: Oriental Securities Corporation, Concord
Securities Co., Ltd., Grand Fortune Securities Co., Ltd. (GFS),
Shin Kong International Securities Co., Ltd. (SKIS), Good Finance
Securities Co., Ltd., Tachan Securities Co., Ltd, Horizon
Securities Co., Ltd. and CL Securities Taiwan Company Limited
(CLST). The Outlook is Stable.
KEY RATING DRIVERS
IDRS AND NATIONAL RATINGS
The ratings are underpinned mainly by their modest company
profiles, as denoted by their generally limited share of domestic
brokerage volume and other capital-market activity, and business
models that concentrate on more volatile brokerage and proprietary
trading operations which are highly susceptible to capital-market
performance. These features are balanced against acceptable
leverage and Fitch's expectation that they will maintain adequate
capital and liquidity buffers to withstand capital-market
volatility.
All eight securities companies reported profit declines in 1H22, as
trading and brokerage income suffered from much weaker market
sentiment - triggered by steep US interest-rate hikes and
heightened geopolitical tensions, along with more than a 30%
decline in average daily turnover. Return on average equity, for
the overall domestic securities sector, was down to 4.9% in 1H22
from 16.8% in 2021.
Fitch expects a slowdown in macroeconomic growth and ongoing
geopolitical tension to continue to weigh on capital-market
performance in 2023, although any incremental weakening may not be
as severe as in 2022.
SKIS saw a more notable decline in leverage in 1H22, due mainly to
much lower margin-financing receivables and trading receivables
awaiting settlement amid a less favourable trading environment,
while the other securities firms kept leverage at similar levels to
end-2021. Leverage remains moderate in absolute terms for the rated
securities firms, within a range of 2x-5x net tangible leverage,
and within Fitch's tolerance for the respective ratings relative to
balance-sheet risks.
All eight firms rely on wholesale funding, and use repos for
short-term funding and carry trades, exposing them to potential
credit-market volatility. The risk is mitigated by their acceptable
liquidity coverage buffers, as well as the high credit quality of
the underlying collateral against the repos, predominantly in the
form of Taiwanese government bonds and investment-grade
private-sector bonds.
GFS, SKIS, Oriental and Concord are rated higher than the other
four. GFS has shown sustained strength in underwriting, supported
by its focused strategy, expertise and strong pipeline. SKIS
continued to produce higher profitability, supported by its
competitive cost structure with its online brokerage focus, despite
the weaker market sentiment in 1H22.
Oriental has maintained a larger equity base relative to its market
position thanks to equity committed by its major shareholder, Far
Eastern group, and its franchise also benefits from its name
association with the group. Fitch also views its risk appetite as
more conservative relative to other lower-rated peers. Concord's
ratings reflect its mid-sized operations and more diversified
business model relative to the peer group.
Tachan's ratings are constrained by its less diversified business
model and reliance on proprietary trading for profit; such risks
are nonetheless reduced by its low use of leverage and adequate
liquidity profile. Good Finance continues its
business-diversification efforts to develop three revenue pillars -
brokerage, proprietary trading, and asset-management. However,
Fitch does not expect much change to its business profile in the
next two years, due to the competitive market dynamics along with
the expectation that its earnings will still depend largely upon
more volatile brokerage and trading income.
CLST and Horizon are rated at the lower end of the peer group. CLST
has been operationally profitable under the current management
structure which started in 2016, and has maintained a healthy
balance sheet. Nonetheless, its reliance on a single large client
and strategic partner, CLSA Limited, raises potential business risk
and constrains its ratings. Horizon's ratings reflect its higher
appetite to take on market risks, and modest franchise.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
Rating downgrades could arise from large and unexpected trading
losses due to adverse market movements, or credit losses stemming
from margin financing, that would weaken capital and liquidity
significantly.
In addition, a downgrade of Concord could come from an inability to
maintain its market position through broader product offerings,
while Oriental's ratings may be downgraded if its capital buffer
starts to decline due to persistent weak profitability or greater
dividend extraction by its parent group, or weakening links with
the parent group - such as reduced capital market flows from its
parent and sister companies.
A prolonged weakness in the capital market that affects
underwriting would be a downgrade trigger for GFS. Downgrades at
Shin Kong and CLST could be triggered by greater operational
challenges that undermine business continuity.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
Rating upgrades for all eight entities are less likely in light of
their modest franchises. Still, increased scale and business
diversification, resulting in lower earnings concentration and
volatility, would support positive rating action.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
Entity/Debt Rating Prior
----------- ------ -----
Tachan Securities
Co., Ltd Natl LT BBB+(twn)Affirmed BBB+(twn)
Natl ST F2(twn) Affirmed F2(twn)
Horizon Securities
Co., Ltd. Natl LT BBB(twn) Affirmed BBB(twn)
Natl ST F3(twn) Affirmed F3(twn)
Grand Fortune Securities
Co., Ltd. Natl LT A-(twn) Affirmed A-(twn)
Natl ST F1(twn) Affirmed F1(twn)
Oriental Securities
Corporation LT IDR BB+ Affirmed BB+
ST IDR B Affirmed B
Natl LT A-(twn) Affirmed A-(twn)
Natl ST F1(twn) Affirmed F1(twn)
Good Finance Securities
Co., Ltd. Natl LT BBB+(twn)Affirmed BBB+(twn)
Natl ST F2(twn) Affirmed F2(twn)
CL Securities Taiwan
Company Limited Natl LT BBB(twn) Affirmed BBB(twn)
Natl ST F2(twn) Affirmed F2(twn)
Concord Securities
Co., Ltd. LT IDR BB+ Affirmed BB+
ST IDR B Affirmed B
Natl LT A-(twn) Affirmed A-(twn)
Natl ST F2(twn) Affirmed F2(twn)
Shin Kong International
Securities Co., Ltd. Natl LT A-(twn) Affirmed A-(twn)
Natl ST F2(twn) Affirmed F2(twn)
*********
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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