/raid1/www/Hosts/bankrupt/TCRAP_Public/221124.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, November 24, 2022, Vol. 25, No. 229
Headlines
A U S T R A L I A
CASA SOL: First Creditors' Meeting Set for Nov. 29
GRAND CINEMAS: Cinema Chain Collapses Due to Covid Restrictions
INNOVATIVE OFFICE: Second Creditors' Meeting Set for Nov. 25
METIGY GROUP: Returns to Creditors Look Thin; Faces ASIC Probe
PETROSERV INT'L: First Creditors' Meeting Set for Nov. 24
POLITIS CENTRAL: Second Creditors' Meeting Set for Nov. 25
TRIPLE MMM: Melbourne Place Hotel Placed Into Administration
WIRI COMMUNITY: Second Creditors' Meeting Set for Nov. 28
C H I N A
ZHONGYUAN ASSET: Fitch Assigns 'BB+' Rating to New US Dollar Notes
I N D I A
A.K. SONI: CARE Keeps D Debt Ratings in Not Cooperating Category
AADHISHIVA ENTERPRISES: CARE Keeps D Rating in Not Cooperating
ADVANCE METERING: CARE Keeps B+ Debt Ratings in Not Cooperating
AIMIA INDIA: Voluntary Liquidation Process Case Summary
ALVA'S EDUCATION: Ind-Ra Assigns 'BB-' Bank Loan Rating
ARDISONS ASSOCIATES: CARE Lowers Rating on INR6.50cr Loan to B-
AT&F INDIA FABRICATION: Insolvency Resolution Process Case Summary
AURO GOLD: Insolvency Resolution Process Case Summary
B. K. CONSTRUCTION: CARE Lowers Rating on INR4.95cr Loan to B-
BHAGWATI GEMS: Ind-Ra Affirms 'BB+' LongTerm Issuer Rating
BHAIRAVNATH SUGAR: Ind-Ra Keeps 'D' Rating in Non-Cooperating
BILCARE LTD: NCLAT Stays Insolvency Proceedings Against Company
BIOTECH FUELS: Ind-Ra Assigns 'B' Issuer Rating, Outlook Stable
BROTHER MULTIPLAST: Ind-Ra Moves BB Rating to Non-Cooperating
CHEMM FINANCE: Ind-Ra Affirms 'BB' LongTerm Issuer Rating
CHENANI NASHRI: Ind-Ra Affirms 'D' Bank Loan Rating
DBG LEASING AND HOUSING: Insolvency Resolution Case Summary
DEEP PLAST: CARE Keeps C Debt Rating in Not Cooperating Category
DELHI ELECTRIC: CARE Keeps B- Debt Rating in Not Cooperating
DEMBLA VALVES: Ind-Ra Assigns BB+ LT Issuer Rating, Outlook Stable
DK REALTY INDIA: Insolvency Resolution Process Case Summary
FENIX PROCESS: CARE Lowers Rating on INR25.88cr LT Loan to B+
FOUNTAIN IMPORTS: CARE Keeps D Debt Ratings in Not Cooperating
HARI STEEL: CARE Keeps B- Debt Rating in Not Cooperating Category
HERITAGE WORLD: CARE Keeps C Debt Rating in Not Cooperating
IL&FS: Ind-Ra Affirms 'D' Long-Term Issuer Rating
JALANDHAR AMRITSAR: Ind-Ra Moves 'D' Loan Rating to NonCooperating
JULY NEW: Voluntary Liquidation Process Case Summary
JULY SYSTEMS: Voluntary Liquidation Process Case Summary
KANDIVLI BALAJI: Insolvency Resolution Process Case Summary
KANDUI INDUSTRIES: Ind-Ra Lowers Long-Term Issuer Rating to 'BB'
KANJI KALYANJI: CARE Keeps B- Debt Rating in Not Cooperating
KARTHICK POULTRY: CARE Keeps B- Debt Rating in Not Cooperating
KHADYOTA KISHAN: Insolvency Resolution Process Case Summary
KOPARGAON AHMEDNAGAR: Ind-Ra Keeps 'D' Rating in NonCooperating
LALIT POLYPLAST: CARE Lowers Rating on INR6.0cr Loan to B
LODZ DENIM: Ind-Ra Affirms BB+ LT Issuer Rating, Outlook Positive
LOKMANGAL AGRO: Insolvency Resolution Process Case Summary
MAGNUM SPINNING: Ind-Ra Moves BB Issuer Rating to Non-Cooperating
NANDHINI HOTELS: Insolvency Resolution Process Case Summary
PIONEER FOOD: CARE Keeps D Debt Rating in Not Cooperating
PREMIER SEAFOODS: Ind-Ra Moves BB- Issuer Rating to NonCooperating
QUADROS MOTORS: CARE Keeps D Debt Rating in Not Cooperating
RAHUL COMMERCE: CARE Keeps C Debt Rating in Not Cooperating
RAJARAMBAPU PATIL: Ind-Ra Gives BB- Issuer Rating, Outlook Stable
RAMA RICE: CARE Keeps B- Debt Rating in Not Cooperating Category
RAMESH H: CARE Keeps B- Debt Rating in Not Cooperating Category
RAVJI MANJI: CARE Keeps C Debt Rating in Not Cooperating Category
RELCON INFRAPROJECTS: Ind-Ra Keeps 'BB+' Rating in NonCooperating
RELIABLE FINANCE: Liquidation Process Case Summary
RELIANCE INFRATEL: Tribunal Approves Jio's Bid to Acquire Firm
S M INTERIOR: CARE Lowers Rating on INR32.04cr LT Loan to B+
SAMKWANG INDIA: Ind-Ra Moves BB Issuer Rating to Non-Cooperating
SANATAN MERCHANTS: Ind-Ra Affirms BB Issuer Rating, Outlook Stable
SANDBERRY FIBRETECH: CARE Assigns B+ Rating to INR66.70cr Loan
SANDHU FARMS: CARE Keeps D Debt Rating in Not Cooperating
SASA MUSA: Insolvency Resolution Process Case Summary
SAVI LEATHERS: Ind-Ra Moves B+ LT Issuer Rating to Non-Cooperating
SCSL AGRO: Ind-Ra Withdraws B+ LongTerm Issuer Rating
SHREE KRISHNA: Ind-Ra Affirms BB+ Issuer Rating, Outlook Stable
SINGH ENTERPRISES: Ind-Ra Moves BB Issuer Rating to NonCooperating
SULTANPURE TEXTILE: Ind-Ra Gives B+ Issuer Rating, Outlook Stable
TIRUPATI STEEL: CARE Keeps B- Debt Rating in Not Cooperating
TULSI DEVI: CARE Keeps B- Debt Rating in Not Cooperating Category
UNITED BROTHERS: Ind-Ra Moves BB- Issuer Rating to Non-Cooperating
VANTA BIOSCIENCE: Ind-Ra Moves D Issuer Rating to NonCooperating
VANTAGE MACHINE: CARE Keeps C Debt Rating in Not Cooperating
VANTAGE SPINNERS: CARE Keeps D Debt Rating in Not Cooperating
VELNIK INDIA: Insolvency Resolution Process Case Summary
VIJAYA DURGA: CARE Keeps D Debt Rating in Not Cooperating
VITTHAL GAJANAN: CARE Keeps D Debt Rating in Not Cooperating
WALCHANDNAGAR INDUSTRIES: Ind-Ra Assigns B- LT Issuer Rating
[*] Creditors Realise INR2.43 lakh crore Through IRP Until Sep 2022
I N D O N E S I A
KAWASAN INDUSTRI: Fitch Lowers LongTerm Issuer Default Rating to C
PT REASURANSI: Fitch Lowers Insurer Fin. Strength Rating to 'CC'
N E W Z E A L A N D
EVI-DENT DENTURE: Creditors' Proofs of Debt Due on Dec. 19
NZ TINY HOMES: Creditors' Proofs of Debt Due on Jan. 17
PENINSULA ROOF: Court to Hear Wind-Up Petition on Dec. 5
PRITCHARD TRUSTEES: Greg Sherriff Appointed as Receiver
WORKFORCE RECRUITMENT: Court to Hear Wind-Up Petition on Dec. 13
S I N G A P O R E
CELEBES LINES: Commences Wind-Up Proceedings
CHARAKU PTE: Court to Hear Wind-Up Petition on Dec. 9
EQONEX LTD: Files for Voluntary Debt Restructuring in Singapore
OFFSHORE HOLDING: Court Enters Wind-Up Order
SALE STOCK: Court Enters Wind-Up Order
TECHNOFORM KUNSTSTOFFPROFILE: Proofs of Debt Due on Dec. 23
S O U T H K O R E A
GERMAN PROPERTY: Korean Firms Urged to Repay Investors
V I E T N A M
ANZ VIETNAM: Fitch Affirms 'BB' Foreign Currency IDR, Outlook Pos.
ASIA COMMERCIAL: Fitch Affirms BB- LongTerm IDR, Outlook Stable
MILITARY BANK: Fitch Hikes LongTerm IDR to 'BB-', Outlook Pos.
STANDARD CHARTERED VIETNAM: Fitch Affirms BB Foreign Currency IDR
VIETCOMBANK: Fitch Hikes LongTerm IDR to 'BB', Outlook Positive
VIETINBANK: Fitch Hikes LongTerm IDR to 'BB', Outlook Positive
- - - - -
=================
A U S T R A L I A
=================
CASA SOL: First Creditors' Meeting Set for Nov. 29
--------------------------------------------------
A first meeting of the creditors in the proceedings of Casa Sol Pty
Ltd will be held on Nov. 29, 2022, at 10:30 a.m. at Level 14, 570
Bourke Street in Melbourne and via virtual meeting technology.
Con Kokkinos of Worrells was appointed as administrator of the
company on Nov. 17, 2022.
GRAND CINEMAS: Cinema Chain Collapses Due to Covid Restrictions
---------------------------------------------------------------
Alexis Carey at news.com.au reports that Grand Cinemas, a popular
Australian cinema chain, has left loyal customers devastated after
announcing the "difficult" news that it had called in
administrators, with the company's future in doubt.
Grand Cinemas started out as a family business back in 1928, and
has evolved into an iconic Western Australian independent film
chain in the almost 100 years since.
But this week, the company took to social media to reveal that the
pandemic had taken a destructive toll on the business, news.com.au
says.
"Some difficult news for us to share today – Covid-19 and the
related closure and capacity limits for cinemas had a substantial
impact on the financial health of our business, and we've had to
get some outside help and have appointed administrators to the
business," the post read.
"It means we will continue trading through some locations in the
short term, but the longer term is harder to predict while
operating and recapitalisation options are reviewed.
"We want to take this opportunity to thank all our staff past and
present and customers for their support. Still WA-owned and
focused, the Grand Theatre Company is proud of its history –
nearly as long as the movie industry itself – and status as one
of Australia's oldest independent film exhibitors."
According to news.com.au, the company confirmed that its Joondalup
and Armadale cinemas would be closed "immediately", but that venues
in Bunbury, Currambine and Warwick would remain open "at this
time".
news.com.au says the announcement shocked customers, who expressed
their sadness on social media - with many urging the local
community to rally around the struggling business.
"Deeply saddened as I attended sometimes up to three times a week.
I love the cinema so much. This is terrible and I am sorry for all
the staff impacted. You guys were truly one of the last safe, fun,
affordable outing venues in Perth. Again gee wiz," one loyal
customer wrote, news.com.au relays.
"I am so very sorry to hear this news today. I know how hard all
the management team and staff fought to keep the doors open during
Covid and in the time since. Hopefully locals will come out and
support a fabulous locally owned and operated business to help keep
the doors open," another added.
"Come on WA don't give up on this WA-owned business. Get some
friends together and go and watch a movie," another urged.
Administrators Ian Francis and Daniel Woodhouse of FTI Consulting
have been appointed, and will now review the company's finances,
news.com.au says.
The pair told The West Australian the chain had also been impacted
by broader Hollywood trends, with fewer films being produced in
recent years as a result of the pandemic, news.com.au relays.
INNOVATIVE OFFICE: Second Creditors' Meeting Set for Nov. 25
------------------------------------------------------------
A second meeting of creditors in the proceedings of Innovative
Office Furniture Pty Ltd has been set for Nov. 25, 2022, at 9:00
a.m. via virtual meeting technology (teleconference and Microsoft
Teams) from Cor Cordis at One Wharf Lane, Level 20, 171 Sussex
Street.
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. 24, 2022, at 4:00 p.m.
Jason Tang and Ozem Kassem of Cor Cordis were appointed as
administrators of the company on Oct. 22, 2022.
METIGY GROUP: Returns to Creditors Look Thin; Faces ASIC Probe
--------------------------------------------------------------
Chris Pash at AdNews reports that the returns to creditors from
Australian startup Metigy look thin, with staff entitlements now
being paid via a federal government scheme, as the corporate
regulator ASIC investigates suspected insolvent trading.
The now collapsed machine-led marketing platform owed an estimated
AUD32,366,606.84, AdNews discloses citing the liquidators in
documents filed to ASIC.
AdNews relates that the liquidators are still to sell two
properties owned by Metigy founder David Fairfull for which he used
a AUD7.7 million loan from the company to purchase.
Mr. Fairfull went bankrupt this month, according to the National
Personal Insolvency Index. Records show this is his second run at
bankruptcy. His first was 2006 to 2009.
A meeting of creditors this week was told that liquidators Simon
Cathro and Andrew Blundell of Cathro Partners are continuing to
assist corporate regulator ASIC in its investigations, according to
AdNews.
AdNews says the liquidators are now using the Fair Entitlements
Guarantee Scheme (FEG), a legislative safety net scheme of last
resort, to pay various employee entitlements.
So far, these payments have totalled AUD1.3 million. However, there
are additional claims made by employees.
The sale of the two properties -- one in Sydney's upmarket Mosman
and the other in Kangaroo Valley, in regional NSW -- were scheduled
for December 6 and 8, AdNews notes.
Mr. Blundell told the meeting of creditors that it appears that
those two properties were bought towards the top of the market.
And that the realisable value may be less than what was paid for
them.
AdNews says previous reports to creditors estimated the value of
properties: 2 Sirius Avenue, Mosman NSW - AUD10,500,000; 741
Wattamolla Road, Wattamolla NSW AUD7,700,000.
But the combined mortgages of AUD12,740,000 left possible equity of
AUD3,760,000.
"The Liquidators had written to the mortgagee on numerous occasions
and despite numerous requests, they had not been provided any
details relating to their costs incurred or the expected
realisation amounts," according to minutes of the meeting, AdNews
relays.
AdNews notes that previous reports from Cathro and Blundell of
Cathro Partners showed Metigy relied almost entirely on capital
injections to run its business.
Part of a AUD20 million capital raise last year -- led by Cygnet
Capital and including Regal Funds Management, OC Funds and Five V
Venture Capital -- to expand the business then became a loan used
to buy personal property.
According to AdNews, the 2015 startup apparently didn't lodge
business activity statements, didn't create formal financial
statements and nor did it appear to lodge tax returns.
The report to creditors from Cathro & Partners stated: "From our
investigations to date, it appears as though the Metigy Group
didn't ever reach a cash flow positive trading position.
"During the year prior to our appointment, Metigy raised capital of
more than $20 million from various investors which appears to have
been used to service the day-to-day trading requirements of the
group entities and a loan to the director which was used to
purchase personal property assets."
Seventy-five staff lost their jobs when the company went into
voluntary administration in July.
AdNews adds that the investigation report: "Metigy does not appear
to have earned any revenue since its inception."
About Metigy
Founded in 2015 by David Fairfull and Johnson Lin, Sydney-based
Metigy provided an all-in-one marketing platform tailored for the
needs of SMEs. The Metigy platform includes video creation and
image editing systems, a live ad creation tool, and a 'marketing
command center' providing "recommendations tailored to your
brand".
Simon Cathro and Andrew Blundell of Cathro Partners were appointed
as administrators of the company on July 29, 2022.
PETROSERV INT'L: First Creditors' Meeting Set for Nov. 24
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Petroserv
International Pty Ltd will be held on Nov. 24, 2022, at 11:00 a.m.
via virtual meeting at Level 17, 383 Kent Street in Sydney.
Philip Campbell Wilson and Cameron Crichton of Grant Thornton
Australia Limited were appointed as administrators of the company
on Nov. 15, 2022.
POLITIS CENTRAL: Second Creditors' Meeting Set for Nov. 25
----------------------------------------------------------
A second meeting of creditors in the proceedings of Politis Central
Services Group Pty Ltd has been set for Nov. 25, 2022, at 11:00
a.m. at the offices of Pitcher Partners Perth at Level 11, 12 The
Esplanade in Perth and via virtual meeting technology.
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. 24, 2022, at 12:00 p.m.
Michael Oscar Basedow of Pitcher Partners Advisory was appointed as
administrator of the company on Oct. 21, 2022.
TRIPLE MMM: Melbourne Place Hotel Placed Into Administration
------------------------------------------------------------
The Property Tribune reports that Merricks Capital announced on
Nov. 22 that it has placed the Melbourne Place hotel development
project into voluntary administration following payment defaults by
the developer, Triple MMM Holdings Pty Ltd.
Upon completion, the project is expected to be valued at $155
million and will consist of a 15-storey, 189-boutique hotel on the
Paris end of Melbourne's CBD.
McGrathNicol Restructuring has appointed Partners Matthew Hutton
and Matthew Caddy as the administrators, the report discloses.
"The Administrators are undertaking an urgent assessment of the
Melbourne Place project. We will be working constructively with all
stakeholders including the builder, ADCO Constructions, to seek to
secure the best possible outcome for all parties," the report
quotes Mr. Hutton as saying.
Currently, the project is in the early stages of both construction
and funding, with the basement and early works underway.
According to The Property Tribune, Merricks Capital is the senior
secured lender of the project, and had made available a $105
million facility, of which around $40 million was drawn.
This forms part of Merrick Capital's' AUD2.1 billion of private
credit sector funds under management.
The Property Tribune relates that Adrian Redlich, Merricks Capital
Executive Chairman & Chief Investment Officer, said, "Melbourne
Place sits on a prime site in Melbourne's east end that is hard to
replicate, and we believe it will be one of Melbourne's leading
hotels. Merricks Capital is keen to support it through to
completion if the right equity partner is presented by the
administrators.
Neil Harding, ADCO Managing Director, said the team remained
supportive of the project.
"Construction remains on track for completion in line with project
planning, and we will work with all stakeholders to see it to a
successful conclusion," The Property Tribune quotes Mr. Harding as
saying.
"The architect has designed a beautiful building that responds well
to its urban setting," Mr Harding said. "For over 50 years ADCO has
delivered striking developments in the hotel, hospitality and
short-term accommodation sectors, and we look forward to seeing
this fabulous project completed."
The news follows the liquidation of All State Constructions
Solutions last week, The Property Tribune notes.
WIRI COMMUNITY: Second Creditors' Meeting Set for Nov. 28
---------------------------------------------------------
A second meeting of creditors in the proceedings of Wiri Community
Limited has been set for Nov. 28, 2022, at 1:30 p.m. at the offices
of SV Partners at 1st Floor, Corner Sydney and Gordon Streets in
Mackay.
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. 24, 2022, at 5:00 p.m.
Frank Jude O'Neill and David Michael Stimpson of SV Partners were
appointed as administrators of the company on Oct. 24, 2022.
=========
C H I N A
=========
ZHONGYUAN ASSET: Fitch Assigns 'BB+' Rating to New US Dollar Notes
------------------------------------------------------------------
Fitch Ratings has assigned China-based Zhongyuan Asset Management
Co., Ltd's (Zhongyuan AMC, BB+/Positive) proposed US dollar senior
notes a rating of 'BB+'. The proposed notes will be issued by
Zhongyuan AMC's wholly owned subsidiary, Zhongyuan Dayu
International (BVI) Co., Ltd., and will be unconditionally and
irrevocably guaranteed by Zhongyuan AMC.
KEY RATING DRIVERS
The proposed guaranteed bonds will constitute Zhongyuan AMC's
direct, unconditional, unsubordinated and unsecured obligations and
will rank pari passu with other unsecured and unsubordinated
obligations. Bond proceeds will be used for refinancing existing
offshore debt and replenishing working capital.
The proposed bonds are rated at the same level as Zhongyuan AMC's
Issuer Default Rating (IDR) because the direct guarantee structure
transfers the ultimate responsibility of payment to Zhongyuan AMC.
DERIVATION SUMMARY
Fitch rates Zhongyuan AMC under the agency's Public Sector,
Revenue-Supported Entities Rating Criteria, which take into account
the company's revenue defensibility, operating risk and financial
profile. The three-notch uplift applied to the Standalone Credit
Profile reflects the application of the Government-Related Entities
Rating Criteria and Fitch's assessment of the four factors under
the strength of linkage and incentive to support.
Zhongyuan AMC's proposed notes are rated on a par with its IDR,
reflecting its unconditional and irrevocable guarantee.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- An upgrade of Zhongyuan AMC's IDR will result in a similar change
in the rating of the proposed notes.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- A downgrade of Zhongyuan AMC's IDR will result in a similar
change in the rating of the proposed notes.
ISSUER PROFILE
Zhongyuan AMC was established in August 2015 with the Henan Finance
Bureau as its major shareholder and controller under the approval
of the provincial government. Its core business is non-performing
asset resolution. It is also engaged in equity investment, finance
leasing, factoring and social resettlement housing projects. It had
total assets of CNY70.8 billion at end-June 2022.
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
----------- ------
Zhongyuan Dayu
International
(BVI) Co., Ltd.
senior unsecured LT BB+ New Rating
=========
I N D I A
=========
A.K. SONI: CARE Keeps D Debt Ratings in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of A.K. Soni
Hosiery Mills Private Limited (ASHMPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 17.96 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 0.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated September 08,
2021, placed the rating(s) of ASHMPL under the 'issuer
non-cooperating' category as ASHMPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. ASHMPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated July 25, 2022, August 4, 2022,
August 14, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution
while using the above rating(s).
A.K Soni Hosiery Mills Private Limited (AKS) incorporated in
August, 2004 is currently being managed by Mr. Anand Kumar Soni,
Mrs. Rajrani and Mr. Sanjeev Soni. Prior to AKS, the
promoters-directors were carrying out operations through a
proprietorship firm 'A.K. Soni Hosiery Mills' (operational since
1971) engaged in similar business. The company is engaged in
manufacturing of knitted fabric.
AADHISHIVA ENTERPRISES: CARE Keeps D Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Aadhishiva
Enterprises (AE) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.35 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated September 7,
2021, placed the rating(s) of AE under the 'issuer non-cooperating'
category as AE had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. AE continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
July 24, 2022, August 3, 2022, August 13, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Aadhishiva Enterprises (AE) is a proprietorship concern established
by Mr. Prathap Chandran in July 2007. AE is engaged in trading of
imported cashews and is operating in 3 facilities in Kerala
(Nedumpana and Pooyappally in Kollam and Attingal in
Thiruvananthapuram). AE imports raw cashews from African countries
like Ivory Coast, Ghana, Tanzaniya, Benin etc. and once the goods
reaches the port (Tutucorin or Cochin), the goods are taken to the
processing units and undergo the process of borma (process of
heating the cashews kernels), Shelling, peeling, grading and
packing. AE has got a centralized packing unit in Kollam where the
packing is done based on customer requirements.
ADVANCE METERING: CARE Keeps B+ Debt Ratings in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Advance
Metering Technology Limited (AMTL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.00 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Long Term/Short 8.50 CARE B+; Stable/CARE A4;
Term Bank ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed rationale and key rating drivers
CARE had, vide its press release August 19, 2021, placed the
ratings of AMTL under the 'issuer non-cooperating' category as the
company had failed to provide information for monitoring of the
rating as agreed to in its Rating Agreement. It continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter dated July
19, 2022, July 20, 2022 and July 25, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
The ratings have been maintained under issuer not cooperating
category on account of non-receipt of requisite information and
hence CARE is not able to conduct appropriate analysis.
Detailed description of the key rating drivers
At the time of last rating on August 19,2021, the following were
the rating strengths and weaknesses (updated for the information
available from BSE India):
Key Rating Weaknesses:
* Subdued operational performance: Total operating income of the
company decreased to INR14.04 crore in FY22 (PY: INR20.38 crore) on
account of decrease in revenue from sale of meters. The company
reported losses of INR2.84 cr during FY22 (PY: loss of INR8.29 cr).
It has also reported losses during H1FY23 for INR0.58 crore (Profit
during H1FY22 of INR0.34 crore).
* Dependence on seasonal wind patterns for power generation: Wind
farms are exposed to inherent risk of climate fluctuations leading
to variations in the wind patterns which affects the CUE.
* Intense competition in the industry: Though the demand prospects
in transmission and distribution of power industry are favourable
given Government of India's initiatives like Power for All, Deen
Dayal Upadhyaya Gram Jyoti Nana (DDUGJY), SAUBHAGYA etc., the
smaller companies remain exposed to the competitive pressure from
other established players. Furthermore, this industry Is fragmented
with large number of small and medium scale players which has a
bearing on the margins of the entities operating in the industry.
Key Rating Strengths:
* Experienced promoters: AMTL is controlled by Ranade family with
its members being the directors In the company. Mr. Pranav Kumar
Ranade, the Managing Director of AMTL, Is a post graduate by
qualification and has more than four decades of experience in
similar line of operations which includes manufacturing of
switchgears, meters etc. The experience of the promoters is
expected to benefit the company in the long run.
* Moderate gearing: Net-worth of the company has declined to
INR100.52 crore as on March 31, 2022 (PY: INR103.71 crore), due to
losses at net level during the year. However, the company's overall
gearing improved significantly to 0.16x as on March 31, 2022 (PY:
0.74x) due to lower debt levels.
* Long-term fixed price PPAs: AMTL is selling power under a 25
years' PPA with AVVNL at a tariff of INR5.18 per unit and a 20 and
25 years' PPA with JoVVNL at a tariff of INR4.46 per unit and
INR5.18 per unit respectively, which provides long-term revenue
visibility.
Outlook: Stable
Liquidity: Adequate
The current ratio of the company stood at 1.24x (PY: 0.93x). The
company reported cash and cash equivalents of INR4.83 crore as on
March 31, 2022 (PY: INR0.16 crore). CARE doesn't have any clarity
on its capex plans.
AMTL was incorporated In 2011 as a resulting company pursuant to
the demerger of 'Eon Electric Ltd (EEL, formerly Indo Asian
Fusegear Limited). AMTL is currently engaged in the manufacturing
of electric meters, wind power generation, energy audit, plastics
components for meters and other electrical and electronic products.
AMTL has three subsidiaries namely PKR Energy Limited, Global Power
Trading PTE Limited, Singapore and Advance Power
and Trading Gmbh, Germany in which there are no major operations.
AMTL also operates 3 wind mill power projects (set-up by Suzlon and
Gamesa) located in Jaisalmer district in Rajasthan with a total
capacity of 11.7 MW which has been operational since 2012.
AIMIA INDIA: Voluntary Liquidation Process Case Summary
-------------------------------------------------------
Debtor: Aimia India Loyalty Managament Private Limited
A-503, Holy Plaza CHS Ltd
Noopur Complex Mira Road (E)
Near Sheetal Nagar
Thane, MH 401107
Liquidation Commencement Date: November 14, 2022
Court: National Company Law Tribunal, New Delhi Bench
Insolvency professional: Mr. Manish Gupta
Interim Resolution
Professional: Mr. Manish Gupta
207, Suchet Chambers
1224/5, Bank Street
Near Faiz Road, Karol Bagh
New Delhi 110005
E-mail: liquidation.aimia@gmail.com
manish@rmgcs.com
Tel: +919212221110
Last date for
submission of claims: December 14, 2022
ALVA'S EDUCATION: Ind-Ra Assigns 'BB-' Bank Loan Rating
-------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated Alva's Education
Foundation's (AEF) bank facilities as follows:
-- INR700 mil. Bank loans assigned with IND BB-/Positive rating.
The Positive Outlook reflects Ind-Ra's expectation of a
moderate-to-healthy growth in AEF's overall student headcount,
leading to an improvement in its operating performance and
financial profile over the medium term.
Key Rating Drivers
Liquidity Indicator – Stretched: The rating reflects AEF's low
cash and bank balance (unrestricted) during FY17-FY22 (FY22:
INR53.04 million, FY21: INR28.19 million). However, the cash flow
from operations improved to INR638.73 million in FY22, after
declining significantly to INR221.19 million in FY21 from
INR1,206.12 million in FY17 due to a fall in revenue during the
period. The improvement in cash flow from operations was due to an
improvement in EBITDA and favorable changes in working capital. The
average utilization of the fund-based working capital limits was
66.84% during the 12 months ended October 2022. The receivables
period was long at 108 days in FY22 (FY21: 162 days, FY20: 38 days)
due to an increase in receivables at the end of the year as the
admission process was delayed due to COVID-19-related disruptions.
However, there have been delays in debt servicing for the 12 months
ended May 2022 on account of delay in fee collection from
students as the admissions were delayed due to COVID-19 pandemic.
The trust has regularized debt repayment from June 2022. AEF's debt
service commitments (both principal and interest cost) is likely to
amount INR552 million for FY23.
The rating is constrained by a decline in student headcount during
FY18-FY21, mainly due to fall in pre-university college courses due
to lack of demand. However, in FY22, the overall student headcount
increased marginally by 2.54% yoy to 15,036. Of the total 15,036
students in FY22, about 47% of the students were from schools and
53% were from colleges. The capacity utilization stood low at 44%
in FY22 (FY21: 41%). As informed by management to Ind-Ra, the
overall student headcount was 18,290 as of October 2022 and is
likely to increase further with the ongoing admissions. Ind-Ra
expects a moderate-to-healthy growth in the student headcount over
the medium term on account of adequate demand for the courses
offered by the institutes run by the trust.
The rating also reflects AEF's moderate scale of operations. The
trust's total revenue has been declining since FY18 due to the fall
in the overall student headcount. However, it remained above
INR2,000 million during FY17-FY22, except FY21. In FY22, the total
revenue increased 24.16% yoy to INR2,214.33 million on account of
the increase in student headcount. It collected revenue of
INR1,668.50 million during April-September 2022. Tuition fee and
hostel income was the major revenue contributor at 53% and 40%,
respectively, averagely to total revenue during FY17-FY22. As the
trust offers diverse programmes through various institutions, it
mitigates trust's revenue concentration risk.
The rating also factors in AEF's moderate leverage and debt service
coverage levels. In FY22, the trusts leverage (debt/EBITDA)
improved to 2.39x (FY21: 3.26x) on account of a 17.03% yoy fall in
the total debt to INR1,690.95 million and a 13.03% yoy increase in
the EBITDA to INR707.65 million. The interest service coverage
(EBITDA/interest expenses) and debt service coverage ratio was
comfortable at 3.62x in FY22 (FY21: 2.76x) and 1.29x (1.21x),
respectively. It plans to incur capex of INR432.80 million during
FY23-FY27 for maintenance of its existing campuses.
However, the rating is supported by AEF's healthy, operating margin
of above 30% during FY21-FY22. Although the operating margin was
volatile during FY18-FY22, the trust reported healthy operating
margin of 31.27% in FY22 (FY21: 34.76%, FY20: 19.84%). The decline
in operating margins was due to a relatively higher increase in
operating expenses than operating income. However, the net surplus
increased to INR201.62 million in FY22 (FY21: INR57.17 million).
Ind-Ra expects the trust's operating profitability to remain
comfortable in the medium term on the back of growth in student
headcount.
The rating also benefits from AEF's strong operational track record
of over 27 years and its strong market position regionally supports
its operational profile.
Rating Sensitivities
Positive: A sustained improvement in the cash flow from operations,
leading to an improvement in liquidity and debt service coverage
ratio, all on a sustained basis, could lead to a positive rating
action.
Negative: Inability to maintain the operating profitability which
could lead to deterioration in the leverage and coverage metrics,
and a further stress on the liquidity position, all on a sustained
basis, will lead to a negative rating action.
Company Profile
Established in 1995, AEF is a charitable trust promoted by Dr.
Mohan Alva in Moodbidri, Karnataka. The trust manages 21
educational institutions that offers education from kindergarten to
standard 12 (K-12), pre-university, diploma, graduate and post
graduate degrees in engineering, nursing, allied health science,
ayurvedic, homeopathic, physiotherapy, and arts and science, among
others.
ARDISONS ASSOCIATES: CARE Lowers Rating on INR6.50cr Loan to B-
---------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Ardisons Associates (AA), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.50 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Short Term Bank 3.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 5,
2021, placed the rating(s) of AA under the 'issuer non-cooperating'
category as AA had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. AA continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
August 21, 2022, August 31, 2022, September 10, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The rating has been revised on account of non-arability of
requisite information.
Ardisons Associates (ARA) is a partnership firm, established in
1978 and being managed by Mr. Gagan Chhabra, Mr. Jagdish Chhabra
and Mr. Sudesh Chhabra. The firm is engaged in the manufacturing of
distribution transformers with capacities ranging from 6.3 KVA to
1,000 KVA at its manufacturing facility located at Kurali, Punjab.
AT&F INDIA FABRICATION: Insolvency Resolution Process Case Summary
------------------------------------------------------------------
Debtor: AT&F India Fabrication Private Limited
902, 9th Floor, Sanjona Chambers
BKSD Marg Opp. I.I.P.S.
Govandi Station Road
Deonar, Mumbai Bandra
Suburban MH 400088
Insolvency Commencement Date: November 18, 2022
Court: National Company Law Tribunal, Pune Bench
Estimated date of closure of
insolvency resolution process: May 17, 2023
Insolvency professional: Shilachandra Hajgude
Interim Resolution
Professional: Shilachandra Hajgude
Office No. 1, MSR Capital
2nd Floor, Pimpri Court Road
Samrat, Chouk
Morwadi, Pimpri Chicnhwad
Pune 411018
E-mail: shilchandra@gmail.com
cirp.atf@gmail.com
Last date for
submission of claims: December 2, 2022
AURO GOLD: Insolvency Resolution Process Case Summary
-----------------------------------------------------
Debtor: Auro Gold Jewellery Private Limited
70/70A, Laxmi Premises
Sheikh Memon Street
1st Floor, Zaveri Bazar
Mumbai, Maharashtra 400002
Insolvency Commencement Date: November 18, 2022
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: May 17, 2023
(180 days from commencement)
Insolvency professional: Mr. Avil Menezes
Interim Resolution
Professional: Mr. Avil Menezes
416, Crystal Paradise Co-op Pvt Ltd
Dattaji Salvi Marg
Above Pizza Express
Off Veera Desai Road
Andheri West, Mumbai 400053
E-mail: avil@caavil.vom
ip.aurogold@gmail.com
Last date for
submission of claims: December 2, 2022
B. K. CONSTRUCTION: CARE Lowers Rating on INR4.95cr Loan to B-
--------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of B.
K. Construction (BKC), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 4.95 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Short Term Bank 3.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 7,
2021, placed the rating(s) of BKC under the 'issuer
non-cooperating' category as BKC had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. BKC
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated August 23, 2022, September 2, 2022, September
12, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of BKC have been
revised on account of non-availability of requisite information.
B. K. Construction (BKC) was established as a proprietorship firm
in April 15, 1998 by Mr. Biplab Gupta of Durgapur, West Bengal.
Since its inception, the firm has been engaged in operation and
maintenance services in the segment like maintenance of thermal
power and hydro power plants, boiler & coal mill, water pkg.
including fire system etc. BKC participates in tenders and executes
orders for the Damodar Valley Corporation, Bharat Electronics
Limited. The firm has an order book position of INR32.90 crore
(1.26x of FY18 total operating income) as on June 30, 2019 which is
to be completed by June 2020.
BHAGWATI GEMS: Ind-Ra Affirms 'BB+' LongTerm Issuer Rating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has revised affirmed Bhagwati
Gems’ Outlook to Positive and Stable while affirming its
Long-Term Issuer Rating at 'IND BB+'.
The instrument-wise rating actions are:
-- INR160 mil. (increased from INR120 mil.) Fund-based working
capital limit affirmed; Outlook revised to Positive from
Stable with IND BB+/Positive rating.
The Outlook revision reflects the improvement in Bhagwati Gems'
interest coverage in FY22, the significant growth in revenue during
the year, and the likelihood of the credit metrics to remain strong
in FY23.
Key Rating Drivers
Bhagwati Gems' revenue and EBDITA grew to INR6,860.52 million and
INR154.41 million respectively in FY22 (FY21: INR2,825.27 million
and INR97.58 million) due to an improvement in the flow of orders
post the receding of the impact of pandemic-led disruptions. In
7MFY23, Bhagwati Gems achieved a revenue of INR3,102 million. The
management expects to record revenue of around INR5,500 million in
FY23. Ind-Ra expects the revenue to be slightly lower on a yoy
basis in FY23, based on the interim financials.
Furthermore, Bhagwati Gems' gross interest coverage (operating
EBITDA/gross interest expense) improved sharply to 35.98x in FY22
(FY21: 11.15x) due to a rise in the absolute EBITDA to INR154.41
million (INR97.58 million). The net financial leverage (adjusted
net debt/operating EBITDA) remained strong but deteriorated
slightly to 1.0x in FY22 (FY21:0.83x) due to an increase in the
total debt to INR167.1 million (INR94.45 million). Ind-Ra expects
the credit metrics to remain strong in FY23, supported by a healthy
operating performance and the absence of any major debt-funded
capex plans.
Liquidity Indicator – Stretched: Bhagwati Gems does not have any
capital market exposure and relies on banks and financial
institutions to meet its funding requirements. The average maximum
utilization of the fund-based limits was 57% during the 12 months
ended September 2022, with no instances of overutilization. The
cash flow from operations turned negative at INR101.24 million in
FY22 (FY21: INR107.15 million) due to unfavorable changes in the
working capital. The free cash flow turned negative at INR48.69
million in FY22 (FY21: INR98.84 million). The net working capital
cycle improved to 31 days in FY22 (FY21: 51 days) due to reduction
in the inventory days to 56 days (114 days). The cash and cash
equivalents stood at INR12.03 million at FYE22 (FYE21: INR13.34
million). The firm has repayment obligations of INR15 million and
INR19.40 million in FY23 and FY24, respectively.
The ratings reflect the continued modest EBITDA margins due to the
nature of the business. The margin fell to 2.25% in FY22 (FY21:
3.45%) due to fluctuations in raw diamond prices. The ROCE was
25.10% in FY22 (FY21: 15.60%). Ind-Ra expects the margins to be
stable in FY23.
Rating Sensitivities
Positive: Sustaining of the scale of operations along with an
improvement in the profitability, leading to an overall improvement
in the liquidity position, will be positive for the ratings.
Negative: Any deterioration in the scale of operations or a
deterioration in the credit metrics or profitability will be
negative for the ratings.
Company Profile
Bhagwati Gems, a partnership firm, is engaged in the cutting and
polishing of rough diamonds at its unit in Surat. In addition, it
is engaged in the trading of rough diamonds. Its partners are
Bharat Kathiriya, Bhimjibhai Kathiriya and Manishaben Kathiriya.
BHAIRAVNATH SUGAR: Ind-Ra Keeps 'D' Rating in Non-Cooperating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Bhairavnath
Sugar Works Limited's (BSWL) Long-Term Issuer Rating of 'IND D' in
the non-cooperating category and has simultaneously withdrawn it.
The instrument-wise rating actions are:
-- INR2.80 bil. Fund-based working capital limits# maintained in
non-cooperating category and withdrawn; and
-- INR1,573.91 bil. Long-term loans# due on January 2025
maintained in non-cooperating category and withdrawn.
# Maintained at 'IND D (ISSUER NOT COOPERATING) before being
withdrawn
Key Rating Drivers
Ind-Ra has maintained the ratings in the non-cooperating category
because the issuer did not participate in the rating exercise
despite requests by the agency and has not provided information
pertaining to full-year financial performance for FY21 and FY22,
sanctioned bank facilities and utilization levels, business plan
and projections for the next three years, information on corporate
governance, and management certificate.
Ind-Ra is no longer required to maintain the ratings, as the agency
has received a no-objection certificate from the lenders. This is
consistent with the Securities and Exchange Board of India's
circular dated March 31, 2017 for credit rating agencies. Ind-Ra
will no longer provide analytical and rating coverage for BSWL.
Company Profile
BSWL was incorporated in 2000 and runs five fully-integrated sugar
manufacturing facilities in Maharashtra, with a total crushing
capacity of 13,500 tons of cane per day and cogeneration plants
with total capacity of 53.5MW.
BILCARE LTD: NCLAT Stays Insolvency Proceedings Against Company
---------------------------------------------------------------
The Economic Times reports that the National Company Law Appellate
Tribunal (NCLAT) has stayed the bankruptcy court's order of
admitting listed pharmaceutical firm Bilcare under the corporate
insolvency resolution process (CIRP). The company was admitted
under the resolution process on a plea filed by Assets
Reconstruction Company (India) after it defaulted on its dues of
over INR235 crore.
Before the appellate tribunal's order, the Mumbai bench of the
National Company Law Tribunal (NCLT) had admitted the company under
CIRP on November 11, and had appointed Ashutosh Agarwala as the
interim resolution professional (IRP) of the company, ET
discloses.
The appellate tribunal will hear the matter further on December 7,
the report notes.
Bilcare Limited is primarily involved in manufacturing speciality
pharmaceutical packaging barrier films. Bilcare provides
pharmaceutical packaging innovation (PPI) services and products,
global clinical services (GCS) and anti-counterfeit technologies to
major pharmaceutical companies. Over the years, Bilcare has
diversified its geographical presence by organic and inorganic
expansion. The company's manufacturing facilities are located in
India, Singapore, USA and Europe and its R&D facilities are in
India, Singapore and the USA.
BIOTECH FUELS: Ind-Ra Assigns 'B' Issuer Rating, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Biotech Fuels
Private Limited (BFPL) a Long-Term Issuer Rating of 'IND B'. The
Outlook is Stable.
The instrument-wise rating actions are:
-- INR470 mil. Proposed term loan assigned with IND B/Stable
rating; and
-- INR30 mil. Proposed fund-based working capital limit assigned
with IND B/Stable/IND A4 rating.
Key Rating Drivers
The ratings reflect BFPL's lack of operational track as the company
is in the initial stage of setting up a proposed ethanol
manufacturing plant at Raipur, Chhattisgarh. The unit is yet to
commence construction. Management has informed Ind-Ra that the
commercial operations will commence from beginning FY25 with 65
kilo liters per day-dedicated grain-based ethanol plant.
The company has signed a memorandum of understanding with Fuelcraft
Solutions Private Limited, which has agreements with oil marketing
companies for supply of ethanol. Ind-Ra, however, expects the scale
of operations to remain small over the medium term owing to the
initial risk associated with capacity utilization.
Liquidity Indicator - Poor: The ratings also reflect the time and
cost overrun, and funding risks associated with the proposed
ethanol manufacturing plant as total investment for the project is
INR685 million, of which INR470 million will be funded through debt
and the remaining through promoters' contribution in the form of
equity and unsecured loans. The term loan is yet to be sanctioned.
As of 30 October 2022, BFPL has incurred INR5.80 million of the
total project cost for land acquisition. The agency expects the
remaining capex to be completed on completion of civil construction
works. The company's day-to-day requirements will be met through
the proposed fund-based working capital limits of INR30 million,
which will be disbursed post commencement of operations. In the
event of a delay in the completion of remaining capex, the expenses
will be funded by promoters. However, this could impact the debt
service coverage ratio.
The ratings are also constrained by promoter's lack of experience
in the ethanol manufacturing business.
Rating Sensitivities
Negative: Any delay in the commencement of operations and achieving
stability in the operating performance or weaker-than-expected
credit metrics could be negative for the ratings.
Positive: The timely commencement of operations and the subsequent
achievement of a stable operating profitability will be positive
for the ratings.
Company Profile
Incorporated on December 22, 2021, BFPL is setting up an ethanol
manufacturing plant. Its registered office is in Raipur
(Chhattisgarh). Rohit Sachdev and Charanjiv Singh Bhutani are the
promoters.
BROTHER MULTIPLAST: Ind-Ra Moves BB Rating to Non-Cooperating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated United Brothers
Multiplast LLP's Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR570 mil. Fund-based limits migrated to non-cooperating
category with IND BB (ISSUER NOT COOPERATING) rating; and
-- INR150 mil. Non-fund-based limits migrated to non-cooperating
category with IND BB (ISSUER NOT COOPERATING)/IND A4+ (ISSUER
NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
October 8, 2021. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
Company Profile
United Brothers Multiplast was set up as a partnership firm, United
Brothers, in August 1997 with the objective of distribution and
marketing of polypropylene products for Gail (India). The firm is
exclusive stockist for Maharashtra, Due & Daman, Silvassa and
Dadranagar Haveli.
CHEMM FINANCE: Ind-Ra Affirms 'BB' LongTerm Issuer Rating
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Chemm Finance
Limited's (CFL) Long-Term Issuer Rating at 'IND BB'. The Outlook is
Stable.
The instrument-wise rating actions are:
-- INR246.1 mil. (reduced from INR250 mil.) Non-convertible
debentures (NCDs)# affirmed with IND BB/Stable rating; and
-- INR50 mil. Bank loans affirmed with IND BB/Stable rating.
#details in annexure
Key Rating Drivers
Modest Scale of Operations to Continue over Near Term; High
Geographical Concentration: During FY22, CFL's assets under
management (AUM) declined 12.5% yoy to INR316.7 million, due to the
impact of the pandemic till 1HFY22. Even on a small AUM base, the
company's loan book expanded moderately at a CAGR of 8.4% over
FY18-FY22 (FY22: INR316.7 million; FY17: INR234 million). As gold
loans are short-tenor loans with an average residual tenor of
four-to-six months, the disbursement momentum is critical for its
loan book growth. Over FY22-FY24, the company plans to improve its
AUM growth by opening new branches, focusing more on marketing
campaigns and linking the employee incentives to disbursements. CFL
is also exposed to high geographical concentration risk, with all
of its 23 branches being located in Karnataka. While the promoters
intend to expand the portfolio to other states over the near term,
the strategy execution remains the key.
Improvement in Scale Critical for Stable Profitability: CFL's
operating expense is on the higher side as it is yet to attain
economies of scale. While the net interest income/average assets of
the company remained healthy at 10.0% in FY22 (FY21: 9.5%; FY20:
9.1%; FY19: 9.7%; FY18: 9.4%), the operating cost/average assets of
9.8% (7.9%; 8.7%; 9.5%; 9.6%) led to a low and volatile return on
assets of 0.3% (1.5%; 0.03%; 0.1%; negative 1.3%). Ind-Ra believes
the scaling up of the operations remains critical to achieve
stability in the profitability over the medium term, and thus, a
key rating monitorable.
Concentrated Funding Profile: At FYE22, CFL's borrowings were
concentrated, with NCDs accounting for 80.8% of the total funding,
which are subscribed by retail investors. Bank overdraft and fixed
deposits from related parties / inter-corporate deposits made up
0.3% and 18.8%, respectively, of its overall borrowings at FYE22. A
diversification of the funding profile is critical to reduce CFL's
dependency on NCDs (both in terms of exposure and the number of
banks), and thus is a key near- to medium-term monitorable.
High Leverage; Promoters Committed to Infusing Capital to Keep
Leverage below 6x: At FYE22, the company's net worth was INR63
million, with a leverage ratio of 5.7x (FY21: 5.0x). Due to a
decline in its AUM on a yoy basis, CFL's reported capital adequacy
ratio increased to 20.9% in FY22 (FY21: 16.2%). The promoters plan
to infuse adequate capital over the near term and maintain adequate
cushion above the regulatory capital adequacy requirement of 12%.
Liquidity Indicator - Adequate: As of March 31, 2022, the company's
asset liability management statement had a cumulative surplus in up
to one-year bucket. At end-September 2022, CFL had cash and liquid
investments of INR27.8 million on its balance sheet, as against
October-December debt outflows of INR34.5 million. Against this, it
had an overdraft limit of INR50 million, which was unutilized at
end-September 2022. Given the shorter tenor of gold loans and CFL
having an average collection of INR55 million on a monthly basis,
its disbursement requirements are covered by the collections
itself, on an ongoing basis. Thus, the liquidity position is
adequate given its bank lines.
Established Presence in Business of Gold and Bullion: CFL is
promoted by George Chemmanur (Chairman) who is also the founder of
the Chemmanur group of companies. The Chemmanur group has a vintage
of more than 50 years in the business of traditional gold jewelry
under the name of Chemmanur Jewellers. The group is extending loans
against gold for more than 28 years through CFL, whose operations
are driven by Anoop Chemmanur (advisor, the largest shareholder and
the son of George Chemmanur). He is supported by the chief
executive officer, Bhuvanendra Takoor, who has an extensive
experience as an ex-banker.
Stable Asset Quality: CFL extends gold loans with a tenor of up to
12-month with bullet principal repayments, while interest accrues
on a monthly basis. The average loan-to-value ratio of the overall
book is 70%, with a maximum cap of 75%. CFL's gross non-performing
assets remained nil in 1QFY23 (FYE22: nil; FYE21: 0.15%; FYE20;
FYE19: nil). The company provides notices to customers who complete
12 months in overdues and conducts auctions before the end of the
15th month to recover dues.
Rating Sensitivities
Positive: A significant scale-up in the AUM while maintaining the
asset quality metrics; healthy profitability and diversification in
funding will be positive for the ratings. Geographic
diversification while maintaining the asset quality, on a
sustainable basis, could also lead to a positive rating action.
Negative: A significant dilution in the tangible net worth, the
leverage exceeding 6x over the near- to medium-term, deterioration
in the asset quality and profitability could lead to a negative
rating action. Any challenges faced by the entity in terms of
regulatory compliance or in case of material fraud could also
entail a negative rating action.
Company Profile
CFL was incorporated in 1993 and was registered with the Reserve
Bank of India as a deposit-taking non-banking finance company on 27
February 1998. It mainly engages in providing loans against gold
assets collateral, also in the form of household jewelry. The
company, which belongs to the Chemm Group, has its corporate office
in Bengaluru. As on 31 March 2022, the major shareholders of the
company were Anoop Chemmanur, with a 44.9% holding, Megha Anoop
(29.1%) and George Chemmanur (around 21.9%).
CHENANI NASHRI: Ind-Ra Affirms 'D' Bank Loan Rating
---------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Chenani Nashri
Tunnelway Limited's (CNTL) bank loans' rating at 'IND D'.
The instrument-wise rating actions are:
-- INR29.760 bil. (INR27,721.1 bil. outstanding on August 30,
2020) Senior long-term bank loans (Long-term)* affirmed with
IND D rating; and
-- INR3.720 bil. (INR3,342.5 bil. outstanding on August 30, 2020)
Subordinated long-term bank loans (Long-term) affirmed with
IND D rating.
* including USD43 million external commercial borrowings
CNTL has been providing project-related information in a timely
manner since September 2022 in line with the regulatory
compliance.
Key Rating Drivers
The affirmation reflects continued delays in debt servicing by CNTL
since September 2018, as per the agency's discussions with
management and lenders. The ratings also factor in lack of any
clarity on the right of sponsor-infused unsecured loans, to call an
event of default on CNTL's loans.
As per the National Company Law Appellate Tribunal ruling dated
March 12, 2020, CNTL continues to be classified as an amber entity
based on its debt-servicing ability, depicting its inability to
meet all its payment obligations, other than operational and
payment obligations towards senior secured financial creditors.
Company Profile
CNTL which is wholly owned by IL&FS Transporation Networks Limited
('IND D (ISSUER NOT COOPERATING') is a special purpose vehicle
created to implement the four-laning of the Chenani-to-Nashri
section of the National Highway 1A (including a two-lane, 9km
tunnel in the Udhampur district near Jammu) on a design, build,
finance, operate and transfer basis under a 20-year concession
(expiring in May 2031) from the National Highways Authority of
India ('IND AAA'/Stable).
DBG LEASING AND HOUSING: Insolvency Resolution Case Summary
-----------------------------------------------------------
Debtor: DBG Leasing and Housing Limited
C-88, Gali No. 8, Jyote Colony
Shadara, New Delhi 110032
Insolvency Commencement Date: November 18, 2022
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: May 15, 2023
(180 days from commencement)
Insolvency professional: Rajeev Ranjan Singh
Interim Resolution
Professional: Rajeev Ranjan Singh
Flat No. 14049, 16 Avenue
Gaur City-2, Greater Noida West
Gautam Buddha Nagar
Uttar Pradesh 201310
E-mail: rajeevranjan6476@gmail.com
- and -
532, 5th Floor, Somdatt Chamber-II
Bhikaji Cama Place
New Delhi 110066
E-mail: dbglhltd.ibc@gmail.com
Last date for
submission of claims: November 30, 2022
DEEP PLAST: CARE Keeps C Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Deep Plast
Industries (DPI) continue to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE C; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 5.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 07,
2021, placed the rating(s) of DPI under the 'issuer
non-cooperating' category as DPI had failed to provide information
for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. DPI continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated August 23, 2022, September 2,
2022, September 12, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution
while using the above rating(s).
Established in 1998 as a partnership firm, DPI is engaged in the
manufacturing of master batches which find its application
predominantly in plastic and packaging industries. The firm was
setup by Mr. Ramesh Patel and his wife Mrs. Asha Patel having equal
profit-sharing ratio. The master batches manufactured by the firm
are compatible with all types of plastic polymers and plastic
manufacturing processes. DPI operates from its sole plant located
in Santej, Gujarat. It has recently completed its expansion and
installed capacity increased to 8,000 metric tonnes per annum
(MTPA) as on March 31, 2015.
DELHI ELECTRIC: CARE Keeps B- Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Delhi
Electric Company (DEC) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 3.75 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Short Term Bank 1.50 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 13,
2021, placed the rating(s) of DEC under the 'issuer
non-cooperating' category as DEC had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. DEC
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated August 29, 2022, September 8, 2022, September
18, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Delhi based Delhi Electric Company (DEC) was established in April,
1973. The firm is currently being managed by Mr. Mahavir Prasad
Mittal and Mrs. Satyawati Mittal as a partnership concern sharing
profits and losses equally. The firm is engaged in trading of
electrical goods such as wires & cables, switchgears, transformers,
etc.
DEMBLA VALVES: Ind-Ra Assigns BB+ LT Issuer Rating, Outlook Stable
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Dembla Valves
Limited (DVL) a Long-Term Issuer Rating of 'IND BB+'. The Outlook
is Stable.
The instrument-wise rating action is:
-- INR200 mil. Fund-based working capital limits assigned with
IND BB+/Stable/IND A4+ rating.
Key Rating Drivers
The ratings reflect DVL's medium scale of operations as indicated
by revenue of INR1,461.31 million in FY22 (FY21: INR946.69
million). The revenue increase in FY22 was attributed to the
normalization of operations post-COVID-19 pandemic. The company
booked revenue of INR350 million in 1QFY23. As of September 2022,
it had an order book of INR1,200 million, to be executed by FYE23.
Ind-Ra expects the revenue to improve further in FY23 on the back
of orders in hand and high demand for valves from the oil and gas
segment. FY22 financials are provisional in nature.
The ratings also factor in DVL's average EBITDA margins of 16.29%
in FY22 (FY21: negative 5.03%, FY20: 15.5%) with a return on
capital employed of 16.8% (negative 5.3%) due to the customized
nature of orders. The margins turned negative in FY21 due to the
COVID-19-led lockdown and an increase in oxygen prices, which led
to an increase in cost of castings (major raw material). However,
the margins returned to pre-covid levels in FY22 with the
stabilization of operations. Ind-Ra expects the EBITDA margins to
remain at a similar level in FY23.
Liquidity Indicator - Stretched: The net working capital cycle
improved to 301 days in FY22 (FY21: 393 days), although remained
elongated, due to a decrease in the inventory holding period to 278
days (301 days). The average maximum utilization of the fund-based
limits was 86.73% during the 12 months ended August 2022. Ind-Ra
expects the utilization to have remained at similar levels in
September and October 2022. The unencumbered cash and cash
equivalents was INR58.27 million at FYE22 (FYE21: INR28.67
million). Furthermore, the company does not have any capital market
exposure and relies on banks and financial institutions to meet its
funding requirements. The cash flow from operations turned positive
to INR47 million in FY22 (FY21: negative INR103.85 million) due to
an increase in the fund flow from operations to INR153.8 million
(negative INR236.87 million). The company had availed a guaranteed
emergency credit line (GECL) of INR98.5 million in FY21 and another
INR77 million in FY22 to meet its working capital requirements. DVL
has around INR69 million and INR63 million of scheduled debt
repayments in FY23 and FY24, respectively, which would be serviced
through internal accruals. Ind-Ra expects the liquidity to
marginally decline in FY23, owing to the scheduled GECL loan
repayment.
The ratings also reflect DVL's modest credit metrics with the gross
interest coverage (operating EBITDA/gross interest expense) of
3.49x in FY22 (FY21: negative 0.77x) and net leverage including
letters of credit (total adjusted net debt/operating EBITDAR) of
3.56x (negative 17.31x). The improvement in the credit metrics was
driven by an increase in the absolute EBITDA to INR238 million in
FY22 (FY21: negative INR47.6 million). Ind-Ra expects the credit
metrics to improve further in FY23 on the back of scheduled debt
repayments and absence of significant capex plans.
However, the ratings benefit from DVL's diversified customer base
as no single customer accounted for more than 20% of the revenue in
FY22. The top 10 customers contributed 26.2% to the total sales in
FY22. The company’s largest customer Modec Offshore Production
Systems (Singapore) Pte. Ltd. contributed 8% to the revenue in
FY22.
The ratings are also supported by the promoters' over three decades
of experience in the valve industry, leading to established
relationships with customers and suppliers.
Rating Sensitivities
Positive: A significant increase in the scale of operations, along
with an improvement in the credit metrics and liquidity position,
all on a sustained basis, will be positive for the ratings.
Negative: A decline in the scale of operations, leading to
deterioration in the credit metrics and/or deterioration in the
liquidity position with the net leverage exceeding 4.0x, all on a
sustained basis, will be negative for the ratings.
Company Profile
Incorporated in 1989, DVL is involved in the fabrication of valves
catering largely to oil and pharmaceutical industries. It is
located in Thane. Jayprakash Dembla is the managing director and
Jeevan Pujara is the chief financial officer.
DK REALTY INDIA: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: D.K. Realty (India) Private Limited
4-A, 4th Floor, Dheeraj Arma
Anant Kanekar Marg
Bandra East, Near Bandra Court
Mumbai City Maharashtra 400051
Insolvency Commencement Date: November 16, 2022
Court: National Company Law Tribunal, Mumbai Bench-IV
Estimated date of closure of
insolvency resolution process: May 14, 2023
Insolvency professional: Mr. Nitin Jain
Interim Resolution
Professional: Mr. Nitin Jain
E-337 Ground Floor
Greater Kailash-I
New Delhi
National Capital Territory of Delhi
110048
E-mail: nitinjain@
ichinencapitalservices.com
- and -
AAA Insolvency Professionals LLP
E-10A, Lower Ground Floor
Kailash Colony, Greater Kailash-I
New Delhi 110048
E-mail: dkrealtyindia.ibc@gmail.com
Classes of creditors: Financial Creditors
Insolvency
Professionals
Representative of
Creditors in a class: Mr. Anshul Pathania
Mr. Viral Vora
Ms. Khatri Tehseen Fatima
Last date for
submission of claims: November 29, 2022
FENIX PROCESS: CARE Lowers Rating on INR25.88cr LT Loan to B+
-------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Fenix Process technologies Private Limited (FPTPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 25.88 CARE B+; Stable; Revised from
Facilities from CARE B; Stable
Short Term Bank
Facilities 1.22 CARE A4 Reaffirmed
Detailed rationale and key rating drivers
The revision of the ratings assigned to the long-term bank
facilities of FPTPL factors in significant improvement of total
operating income (TOI) in FY22 against FY21, with improved cycle
and collection period.
The ratings remain tempered on account of small scale of operation,
moderate profitability margins, moderate order book position,
leveraged capital structure and weak debt coverage indicators. The
ratings are further constrained on account of presence of the
company in competitive and cyclical nature of industry. The
ratings, however, continue to derive strength from experienced
promoters and management.
Rating sensitivities
Positive factors – Factors that could lead to positive rating
action/upgrade:
* Improvement in scale of operations marked by increase in total
operating income of more than INR50 crore on a sustained basis
* Improvement in liquidity profile marked by timely realization of
debtors on sustained basis
* Improvement in gearing level to less than 1x on sustained basis
Negative factors – Factors that could lead to negative rating
action/downgrade:
* Sustained weakening in revenue and profitability.
* Deterioration in liquidity profile on account of delay in
debtor's realization/inventory pileup
Detailed description of the key rating drivers
Key rating weaknesses
* Small scale of operation; albeit substantial growth in TOI in
FY22: The scale of operations continues to remain small, albeit
significant increase in TOI by over 149% at INR34.13 crore for FY22
as against INR13.70 crore for FY21. The increase in TOI was mainly
due to higher execution of orders post covid along with improved
collection led by improved bill payments by clients. The networth
continued to remain low at INR13.53 crore as on March 31, 2022. The
company had an unexecuted orderbook of INR45 crore as on Feb 28,
2022. Out of this the company has executed orders worth INR10-13
crore till October 31, 2022, and accordingly the company is
expected to report a TOI of ~Rs.35 crore in FY23. Hence, timely
execution of orders remains critical from credit perspective and a
key rating monitorable the small scale of operations coupled with
modest networth base restricts the financial flexibility of the
company during industry downturn.
* Moderate profit margins: The profitability of the company marked
by PBILDT margin declined from 24.29% in FY21 to 12.43% in FY22,
mainly on account of high raw material prices (Steel mainly). The
PBILDT in absolute terms has remained on a declining trend over
last three years, however this time in FY22 it has increased from
INR3.33 crore in FY21 to INR4.24 crore, the PAT of the company
stood at INR1.74 crore in FY22 as against INR0.16 Crore in FY21, on
account of increase in TOI.
* Leveraged capital structure and weak debt coverage indicators:
The total debt of the company stood at INR26.20 crore as against
tangible net worth base of INR13.53 crore resulting in leveraged
capital structure. However, the overall gearing ratio improved to
1.94x as on March 31, 2022, as against 2.18x as on March 31, 2021.
With improvement in gearing levels, the debt coverage indicators of
the company also improved, however, continued to remain weak marked
by PBILDT coverage ratio and total debt to GCA of 1.70x and 11.10x
respectively as at the end of FY22(as against 1.47x and 28.62x
respectively as at the end of FY21).
* Susceptibility to volatile raw material prices and forex rates:
The company is also dependent on import of raw materials and
execution of orders for international clients. Moreover, foreign
exchange inflow/outflow remain unhedged, thus exposing to forex
fluctuation risk. The major raw material used in manufacturing is
copper, aluminium, stainless steel etc. which amount to more than
50% of the total cost of material. Further, majority of the orders
executed by FPTPL do not contain price escalation clause leading to
adverse impact on profitability margins in case of unfavorable
movement in the material prices.
* Presence in competitive and cyclical nature of industry: FPTPL
operates in the Engineering Capital goods Industry providing
solutions and execution of orders related to process plant
equipment's. The industry is highly competitive with major presence
of well-established domestic and foreign players. Further, the
company is also highly dependent on the CAPEX undertaken by
customers which is cyclical in nature and influenced by general
macro environments in turn leading to impact on revenue by numerous
factors, including contractionary monetary policy, changes in the
government policies etc.
* Moderate orderbook position: FPTPL has an outstanding orderbook
of INR35 crores as on October 2022, indicating an orderbook to
sales ratio of 1.03 times TOI of FY22 (A), thus providing revenue
visibility in the short to medium term. The existing orderbook does
not contain price escalation clause leading to susceptibility of
profitability margins in case of unfavourable movement of raw
material prices.
Key rating strengths
* Experienced Promoters: FPPL is promoted by Mr. M. V. Roa and is
well versed with the intricacies of the business on the back of
more than three decades of experience in the engineering and
capital goods industry. Further, he is ably supported by Mr. N.K.
Donta (Director) who has an experience of around one decade in
engineering and capital goods industry and a team of experienced
professionals. Furthermore, the directors are supported by
experienced and qualified management team which further aids in
smooth operations of the company and have maintained good
relationship with key customers and suppliers.
* Capex funded through Internal Accruals of the company: The
company has incurred a Capex of INR1.00 crore on machinery in FY22,
funded out of internal accruals. The said expansion was towards
addition of Laser Machine, which is expected to enhance
productivity as the same was previously subcontracted, thus
resulting in better efficiency and will have positive impact on the
margins going ahead.
Liquidity: Stretched
Liquidity position is marked by tightly matched accruals to
repayment obligations. Further, the limits remain fully utilized
and cash balance remained modest at INR0.28 crore as on March 31,
2022. The company is projected to generate a gross cash accrual of
about INR2.5 crore as against a repayment obligation of INR1.84
crore in FY24 and INR3.36 crore in FY24. The average operating
cycle of the company has improved to 313 days in FY22, vis-à-vis
980 days in FY21, mainly led by improvement in collections.
Fenix Process Technologies Private Limited (FPPL) was incorporated
in 2005 and is based out of Pune (Maharashtra). The company is
engaged in designing, engineering, and equipment solutions for
distillation and other mass-transfer operations. The company
undertakes projects from plant erection to supplying custom
machineries. The product profile of the company includes structured
packing, column internals, distillation trays, centrifuge, compact
heat exchangers, evaporators, dryers, mixers, and agitators etc.
The company has technology resources for aromatic solvent
production, methyl amines production, acetate production, Biodiesel
production, waste engine oil decarbonization. The company further
provides turnkey solutions for Distillation technology. The stages
of execution of the project generally include project design and
feasibility study, detailed engineering, design, and fabrication of
equipment's, erection, commission, and operators training and
inhouse analytical and data analysis.
FOUNTAIN IMPORTS: CARE Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Fountain
Imports Private Limited (FIPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 5.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated September 6,
2021, placed the rating(s) of FIPL under the 'issuer
non-cooperating' category as FIPL had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. FIPL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated July 23, 2022, August 2, 2022, August 12, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Incorporated in November 2011, Fountain Imports Private Limited
(FIPL) by Mr. Bhawanji Jeram Mewawala. The company has commenced
operations from October 2012. FIPL is engaged in trading of dry
fruits and agricultural products (viz. coco, sugar and others).
FIPL is part of Fountain Group which was established in 1922 by
late Mr. Bhawanji Jeram Mewawala after whom Mr. Narendra Mewawala
looked after the entire business. The group is engaged into dry
fruit trading business comprising FIPL and other group company
namely, Fountain Dry Fruit Store Limited.
HARI STEEL: CARE Keeps B- Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shree Hari
Steel Industries (SHSI) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 4.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 6,
2021, placed the rating(s) of SHSI under the 'issuer
non-cooperating' category as SHSI had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. SHSI
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated August 22, 2022, September 1, 2022, September
11, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Rourkela (Odisha) based Shree Hari Steel Industries (SHSI) was
established in April 1991 as a proprietorship entity by Mr. Shiv
Kumar Agarwal. Since its inception, SHSI has been engaged in
trading of coal and iron & steel products.
HERITAGE WORLD: CARE Keeps C Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Heritage
World School (HWS) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated September 30,
2021, placed the rating(s) of HWS under the 'issuer
non-cooperating' category as HWS had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. HWS
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated August 16, 2022, August 26, 2022, September 5,
2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Heritage Education & Human Welfare Society is incorporated under
the society registration act 1860. The society is establishing a
senior secondary school in the name of Heritage World School at
Chandauli, Varanasi. The school is being promoted by Sri Lal Ji
Rai, Sri Pankaj Rai, Smt Divya Rai and they are having experience
in health care industry for more than two decades. Heritage group
is one of the leading groups in Varanasi from last 20 years in
Health Care and Construction Industry. The health care business is
looked after by and Dr. Anshuman Rai, whereas real estate sector is
being looked after by Shri Pankaj Rai. Heritage group is running a
multi-specialty hospital i.e. Heritage hospital ltd in Lanka,
Varanasi (Uttar Pradesh).
IL&FS: Ind-Ra Affirms 'D' Long-Term Issuer Rating
-------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Infrastructure
Leasing & Financial Services Limited's (IL&FS) Long-Term and
Short-term Issuer Ratings at 'IND D'.
The instrument-wise rating actions are:
-- INR93,600.8 bil. Long-term debt* (Long term) affirmed with
IND D rating;
-- INR1.0 bil. Subordinated debt^ (Long term) affirmed with
IND D rating;
-- INR12.250 bil. Short-term debt (Short term) affirmed with
IND D rating; and
-- INR3.0 bil. Bank loans (Long term) affirmed with IND D rating.
^Unutilized
*Details in annexure
Key Rating Drivers
The ratings continue to reflect IL&FS's missed payments on
contractual debt obligations. The IL&FS group has been functioning
under a resolution framework, wherein payments are made mostly to
meet operational expenses to ensure the going concern status of the
company. IL&FS remains in a cash conserving mode while continuing
to make efforts towards asset monetization.
In the company's media release dated March 29, 2022, the company
announced that INR550 billion of debt has been resolved. The group
estimates to resolve around INR610 billion of debt.
Liquidity Indicator – Poor: IL&FS is in continuous default since
September 2018, and the liquidity is poor.
Rating Sensitivities
Positive: Timely debt servicing for at least three consecutive
months could result in a positive rating action.
Company Profile
IL&FS operated in India's infrastructure development space. The
company had restructured its business in FY08 and converted itself
into a holding company after demerging its lending and advisory
business to its subsidiary, IL&FS Financial Services Ltd ('IND D').
The company received a core investment company license in September
2012.
JALANDHAR AMRITSAR: Ind-Ra Moves 'D' Loan Rating to NonCooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Jalandhar Amritsar
Tollways Limited's (JATL) bank loan rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using the rating. The rating will now
appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating action is:
-- INR1.417 bil. Bank loan (Long-term) migrated to non-
cooperating category with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
November 25, 2021. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
Company Profile
JATL is a special purpose company that was set up to widen,
operate, and maintain a 49km road stretch on the National Highway 1
between Jalandhar and Amritsar in Punjab. National Highways
Authority of India ('IND AAA'/Stable) has awarded the project to
JATL under a 20-year concession. JATL is wholly owned by IVRCL
Limited ('IND D (ISSUER NOT COOPERATING')). The project stretch is
maintained by IVRCL, which has over two decades of experience in
operating toll roads.
JULY NEW: Voluntary Liquidation Process Case Summary
----------------------------------------------------
Debtor: July New Media Solutions and Technologies Private Limited
Prestige Solitaire, Level-II
No. 6, Brunton Road
Bangalore 560001
Karnataka, India
Liquidation Commencement Date: November 17, 2022
Court: National Company Law Tribunal, Coimbatore Bench
Insolvency professional: Vasudevan Gopu
Interim Resolution
Professional: Vasudevan Gopu
18/30, Ramani Street
K.K. Pudur, Saibaba Colony
Coimbatore 641038
Tamilnadu
E-mail: vasudevangopu.ip@gmail.com
vasudevanacs@gmail.com
Tel: 0422-4347063
Last date for
submission of claims: December 17, 2022
JULY SYSTEMS: Voluntary Liquidation Process Case Summary
--------------------------------------------------------
Debtor: July Systems and Technologies Private Limited
Prestige Solitaire, Level-II
No. 6, Brunton Road
Bangalore 560001
Karnataka, India
Liquidation Commencement Date: November 17, 2022
Court: National Company Law Tribunal, Coimbatore Bench
Insolvency professional: Vasudevan Gopu
Interim Resolution
Professional: Vasudevan Gopu
18/30, Ramani Street
K.K. Pudur, Saibaba Colony
Coimbatore 641038
Tamilnadu
E-mail: vasudevangopu.ip@gmail.com
vasudevanacs@gmail.com
Tel: 0422-4347063
Last date for
submission of claims: December 17, 2022
KANDIVLI BALAJI: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Kandivli Balaji Investment Private Limited
Gajalaxmi Apartments
Babhai Naka Borivali (W)
Mumbai 400067
Insolvency Commencement Date: November 10, 2022
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: May 9, 2023
(180 days from commencement)
Insolvency professional: Mr. Sanjay Gupta
Interim Resolution
Professional: Mr. Sanjay Gupta
C-4E/135, Janakpuri
New Delhi 110058
E-mail: sanjay@sgaindia.in
- and -
Primus Insolvency Resolution and
Valuation Pvt. Ltd.
408, 4th Floor, Manish Chambers
Sonawala Road, Goregaon (E)
Mumbai 400063
Email: cirpkandivli@gmail.com
Last date for
submission of claims: November 24, 2022
KANDUI INDUSTRIES: Ind-Ra Lowers Long-Term Issuer Rating to 'BB'
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Kandui
Industries Pvt Ltd.'s Long-Term Issuer Rating to 'IND BB (ISSUER
NOT COOPERATING)' from 'IND BBB- (ISSUER NOT COOPERATING).'
The instrument-wise rating actions are:
-- INR290 mil. Fund-based working capital limits downgraded with
IND BB (ISSUER NOT COOPERATING) rating;
-- INR170 mil. Non-fund-based working capital limits downgraded
with IND A4+ (ISSUER NOT COOPERATING) rating; and
-- INR108.90 mil. Term loans due on April 2025 downgraded with
IND BB (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer not cooperating, based on the
best available information.
Key Rating Drivers
The downgrade is pursuant to the Securities and Exchange Board of
India's circular SEBI/HO/MIRSD/CRADT/CIR/P/2020/2 dated January 3,
2020. As per the circular, any issuer with an investment-grade
rating remaining non-cooperative with a rating agency for more than
six months should be downgraded to a sub-investment grade rating.
The current outstanding rating of 'IND BB (ISSUER NOT COOPERATING)'
may not reflect Kandui Industries credit strength as the company
has been non-cooperative with the agency. Therefore, investors and
other users are advised to take appropriate caution while using
these ratings.
Company Profile
Established in 2006, Kandui Industries manufactures master batches
that are used in the plastic and polyester industries for adding
color shades to the final product.
KANJI KALYANJI: CARE Keeps B- Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Kanji
Kalyanji And Co (KKC) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.50 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 24,
2021, placed the rating(s) of KKC under the 'issuer
non-cooperating' category as KKC had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. KKC
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated October 10, 2022, October 20, 2022, October 30,
2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Mumbai (Maharashtra) based Kanji Kalyanji and Co. (KKC) is a
partnership firm established in 1949 and is currently managed by
Mr. Rajesh Shantilal Lapasia and Mr. Yash Rajesh Lapasia. They
collectively look after the overall operations of the firm. The
entity is engaged in the business of extraction and supplying of
refined oils such as groundnut, cotton, sunflower etc. at its
processing facility located in Mumbai, Maharashtra.
KARTHICK POULTRY: CARE Keeps B- Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sri
Karthick Poultry Farm (SKPF) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 14.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated September 06,
2021, placed the rating(s) of SKPF under the 'issuer
non-cooperating' category as SKPF had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. SKPF
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated July 23, 2022, August 2, 2022, August 12, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Mr. S Natarajan (HUF) intends to establish Sri Karthick Poultry
Farm (SKPF) as Proprietorship firm which would be engaged in
rearing of chicks for production of eggs. The raw materials such as
feeds for chick like maize, broken rice, medicine would be procured
from KR Agency, Amman agency, and medicine for chick from Poorani
Agrowet all located in and around Namakkal (Dt.) Tamil Nadu.
However, the firm intends to make sale of eggs, manure and chicken
through broker namely SKM feeds. The Proprietor already has an
existing poultry farming business in the name of 'Sri Karthik
Poultry farm' located in Namakkal area itself with an area of 23
acres and was established in 2000.
KHADYOTA KISHAN: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Khadyota Kishan Foundation
(Kishan Research and Development Centre)
241/1, 3rd Sundaram Street
Nalvar Layout, Near Lala Mahal
Rathinapuri, Coimbatore 641027
Insolvency Commencement Date: November 11, 2022
Court: National Company Law Tribunal, Chennai Bench
Estimated date of closure of
insolvency resolution process: May 8, 2023
Insolvency professional: Usha Gayathri Kavi
Interim Resolution
Professional: Usha Gayathri Kavi
Old No. 12/1 (New No. 21)
Kutchery Road
Mylapore, Chennai 600004
E-mail: ca.ushagayathrik@gmail.com
irpkhadyota@gmail.com
Mobile: 9500075778
Last date for
submission of claims: November 23, 2022
KOPARGAON AHMEDNAGAR: Ind-Ra Keeps 'D' Rating in NonCooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Kopargaon
Ahmednagar Tollways Phase 1 Private Limited's senior project term
loan in the non-cooperating category. The issuer did not
participate in the surveillance exercise, despite continuous
requests and follow-ups by the agency. Therefore, investors and
other users are advised to take appropriate caution while using the
rating. The rating will continue to appear as 'IND D (ISSUER NOT
COOPERATING)' on the agency's website.
The detailed rating action is:
-- INR1.560 bil. Senior project bank loan(long-term) maintained
in non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
August 4, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
Company Profile
Kopargaon Ahmednagar Tollways Phase 1 is a special purpose vehicle
that was incorporated to implement the expansion of a 42.6km
stretch on the Kopargaon Ahmednagar section of State Highway 10 in
Maharashtra to four lanes from two under a seven-year concession
from the state government.
LALIT POLYPLAST: CARE Lowers Rating on INR6.0cr Loan to B
---------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Lalit Polyplast Private Limited (LPPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
revised from CARE B+; Stable
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated September 13,
2021, placed the rating(s) of LPPL under the 'issuer
non-cooperating' category as LPPL had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. LPPL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated July 30, 2022, August 10, 2022, August 19,
2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings have been revised on account of non-availability of
requisite information.
Incorporated in 2014, Lalit Polyplast Private Limited (LPPL) was
promoted by Mr. Lalit Kumar Jha and Mrs. Anubha Jha, is engaged in
trading of polymers and plastic raw materials like Poly Vinyl
Chloride (PVC) resin, PVC paste resin, polypropylene granules,
high-density polyethylene granules, low-density polyethylene
granules, and linear low-density polyethylene granules,
plasticisers and other polymers. The products of the company are
used in making plastic containers, pipes, tanks, lamination,
automobile industry etc. The company has warehouses in Delhi,
Bawana and Faridabad having storage capacity of 300 M.T., 300M.T.
and 450 M.T. respectively.
LODZ DENIM: Ind-Ra Affirms BB+ LT Issuer Rating, Outlook Positive
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Lodz Denim Pvt
Ltd.'s (LDPL) Long-Term Issuer Rating at 'IND BB+'. The Outlook is
Positive.
The instrument-wise rating actions are:
-- INR140 mil. Fund-based facilities affirmed with IND BB+/
Positive rating;
-- INR75 mil. Non-fund-based facilities affirmed with IND A4+
rating; and
-- INR913.6 mil. (reduced from INR965 mil.) Term loan due on
March 2027 affirmed with IND BB+/Positive rating.
The Positive Outlook reflects the likelihood of an improvement in
the credit metrics in FY23, led by scheduled debt repayment and
sustaining of the scale of operations.
Key Rating Drivers
The rating factors in LDPL's continued medium scale of operations,
as indicated by revenue of INR2,890.92 million in FY22 (FY21:
INR1,522.89 million). The revenue rose by 90% yoy in FY22 due to
growth in the sales volumes to 16.76 million meters (FY21: 10.5
million meters), led by the normalization of operations post the
pandemic. The capacity utilization rose to 72% in FY22 (FY21:64%),
with the production of denim fabric rising to 17.51 million meters
during the year (14.9 million meters). The company booked a revenue
of INR1,261 million in 5MFY23 and had an orderbook of INR590
million as of September 2022, to be executed in the next three
months. Ind-Ra expects the revenue to improve marginally in FY23,
backed by the company's orderbook and continued high realizations
of denim, as the heavy rains in October have pushed the likely
decline in cotton yarn prices back by a month.
The rating reflects LDPL's moderate credit metrics. The metrics
improved in FY22 due an increase in the absolute EBITDA to INR312.9
million (FY21: INR187.25 million). The gross interest coverage
(operating EBITDA/gross interest expense) was 2.52x in FY22 (FY21:
1.67x) and the net leverage (total adjusted net debt/operating
EBITDAR) was 3.89x (6.78x). Ind-Ra expects the credit metrics to
improve in FY23 on the back of the debt repayment, sustained scale
of operations, and the absence of any major debt-funded capex
plans.
Liquidity Indicator -Stretched: The average maximum utilization of
the fund-based limits was 67.28% in the 12 months ended September
2022. The unencumbered cash and cash equivalents stood at only INR2
million at FYE22 (FYE21: INR2 million). LDPL has high debt
repayment liabilities of INR173 million and interest payment of
about INR110 million in FY23. The scheduled debt repayment stands
at INR173.3 million in FY24. Furthermore, the company does not have
any capital market exposure and relies on banks and financial
institutions to meet its funding requirements. The net working
capital cycle improved to 59 days in FY22 (FY21: 73 days) due to a
decrease in the inventory days to 92 days (112 days) and a fall in
the debtor days to 66 days (79 days). The inventory days improved
due to higher revenue and normalization of operations post-covid.
The cash flow from operations turned positive at INR84.47 million
in FY22 (FY21: negative INR289 million) due to an increase in the
fund flow from operations to INR193.59 million (INR80.9 million).
The company had taken guaranteed emergency credit line of INR202
million in FY22, and secured a further extension of INR101 million
in the same in FY23 to meet its working capital requirements.
The rating reflects LDPL's average EBITDA margins. The margin
declined to 10.82% in FY22 (FY21: 12.30%, FY20: 10.44%) due to an
increase in the prices of cotton yarn, the main raw material in the
production of denim. The ROCE was 14.1% in FY22 (FY21: 6.9%).
Ind-Ra expects the margins to remain at similar levels in FY23.
The ratings are also constrained by LDPL's high customer
concentration, as a single customer accounted for 26% of the
revenue in FY22. The top 10 customers contributed to 63.3% of the
total sales in FY22.
The ratings are supported by the strong relationships that LDPL has
established with its customers in the domestic as well as export
markets since the commencement of operations in FY20, which has
enabled it to secure repeat orders from its top ten customers over
the past two years.
The ratings also benefit from the promoters' experience of close to
a decade in the textile industry.
Rating Sensitivities
Negative: Inability to sustain the scale of operations, leading to
deterioration in the liquidity, with the net leverage remaining
above 3x, will be negative for the ratings.
Positive: Improvement in liquidity while sustaining the scale of
operations, with the net leverage falling below 3x, on a sustained
basis, will be positive for the ratings.
Company Profile
LDPL, which was incorporated in December 2011, manufactures denim
fabric in Surat, Gujarat, with 75% domestic sales and 25% exports.
Bangladesh is its biggest export customer. The unit has an
installed capacity of 23 million meters.
LOKMANGAL AGRO: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Lokmangal Agro Industries Limited
Lokmangal House, 8536
A/11, Murarji Peth
Old Poona Naka, Solapur
Maharashtra 413001
Insolvency Commencement Date: November 16, 2022
Court: National Company Law Tribunal, Mumbai Bench V
Estimated date of closure of
insolvency resolution process: May 14, 2023
Insolvency professional: Mr. Ajay Ganesh Marathe
Interim Resolution
Professional: Mr. Ajay Ganesh Marathe
Flat no. 205, Sudama Yash
Chittarajan Das Road
Next to Ramakrishna Hotel
Dombivili (East)
Maharashtra 421201
E-mail: ajaym7@rediffmail.com
- and -
581, Top Floor
Sector 27, Gurugram
Haryana
E-mail: lokmangal@truproinsolvency.com
Last date for
submission of claims: November 30, 2022
MAGNUM SPINNING: Ind-Ra Moves BB Issuer Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Magnum Spinning
Mills India Private Limited's (MSMIPL) Long-Term Issuer Rating of
'IND BB' to the non-cooperating category and has simultaneously
withdrawn the same.
The instrument—wise rating actions are:
-- INR120 mil. Fund-based working capital limits* migrated to
non-cooperating category and withdrawn;
-- INR337.7 mil. Term loans# due on September 2028 migrated to
non-cooperating category and withdrawn; and
-- INR40 mil. Proposed fund-based working capital limits*
migrated to non-cooperating category and withdrawn.
*Migrated to 'IND BB (ISSUER NOT COOPERATING)/ 'IND A4+ (ISSUER
NOT COOPERATING)' before being withdrawn
# Migrated to 'IND BB (ISSUER NOT COOPERATING)' before being
withdrawn
Key Rating Drivers
The rating has been migrated to the non-cooperating category as
MSMIPL did not participate in the rating exercise despite
continuous requests and follow-ups by Ind-Ra and has not provided
information pertaining to the operational and financial performance
in FY22, sanctioned bank facilities and utilization, business plan
and projections for the next three years, and information on
corporate governance.
Ind-Ra is no longer required to maintain the rating, as it has
received a no-objection certificate from the lender. This is
consistent with the Securities and Exchange Board of India's
circular dated March 31, 2017 for credit rating agencies.
Company Profile
MSMIPL manufactures blended yarn (cotton, polyester, and lensing
viscose). The company manufactures varieties of yarns, blending
cotton, viscose and polyester.
NANDHINI HOTELS: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Nandhini Hotels Private Limited
#114/2, Lalbagh Fort Road
Bangalore, Karnataka 560004
Insolvency Commencement Date: November 16, 2022
Court: National Company Law Tribunal, Bangalore Bench
Estimated date of closure of
insolvency resolution process: April 18, 2023
Insolvency professional: Vineet Gupta
Interim Resolution
Professional: Vineet Gupta
408, Laxmi Deep Building
Dist. Centre, Laxmi Nagar
Delhi 110092
E-mail: vineetsinghalco@hotmail.com
ipvgupta@gmail.com
Classes of creditors: Real Estate - Home Buyers
Insolvency
Professionals
Representative of
Creditors in a class: Ms. Santosh Goel
Pradeep Kumar Kaushik
Sanjeev Gupta
Last date for
submission of claims: November 30, 2022
PIONEER FOOD: CARE Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Pioneer
Food & Agro Industries Private Limited (PFAIPL) continues to remain
in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Short Term Bank 30.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated September 06,
2021, placed the rating(s) of PFAIPL under the 'issuer
non-cooperating' category as PFAIPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. PFAIPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated July 23, 2022, August 02,
2022, August 12, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Mumbai (Maharashtra) based Pioneer Food & Agro Industries Private
Limited (PFAIPL), initially established as a partnership firm in
2007 and later on in July 2014 was converted into private limited
company. PFAPL is engaged in the processing of the raw honey
wherein it procures raw honey through its network of traders &
collectors (from Punjab, Haryana, Uttarakhand, Uttar Pradesh, Bihar
and West Bengal) and decrystallize it (reduces the moisture
content) to improve the quality of honey and finally exports the
processed honey (export only to USA). The company has its sole
processing facility located at Mathura (Uttar Pradesh) with the
accreditation from ISO 22000, HACCP & USFDA.
PREMIER SEAFOODS: Ind-Ra Moves BB- Issuer Rating to NonCooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Premier Seafoods
Exim Private Limited's Long-Term Issuer Rating to the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
continue to appear as 'IND BB- (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating action is:
-- INR180 mil. Fund-based working capital limit migrated to non-
cooperating category with IND BB- (ISSUER NOT
COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
October 5, 2021. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
Company Profile
Incorporated in 2000, Kerala-based Premier Seafoods Exim processes
sea-caught and cultured shrimps. The company has two processing
units, one each in Cochin (Kerala), and Aroor (Alappuzha). It
primarily caters to customers in Europe, Japan and other Asian
countries.
QUADROS MOTORS: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Quadros
Motors Private Limited (QMPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.20 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated September 03,
2021, placed the rating(s) of QMPL under the 'issuer
non-cooperating' category as QMPL had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. QMPL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated July 20, 2022, July 30, 2022, August 9, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Incorporated in the year 2005, QMPL is an authorized dealer for
Suzuki Motors India Private Limited (Suzuki) for its two wheelers
and covers the whole Goa State, being a '3-S' dealer, it also
provides spares and services. QMPL had four showrooms located at
Margao, Ponda, Mapusa and Vasco.
RAHUL COMMERCE: CARE Keeps C Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Rahul
Commerce Private Limited (RCPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.60 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Short Term Bank 1.40 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated September 6,
2021, placed the rating(s) of RCPL under the 'issuer
non-cooperating' category as RCPL had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. RCPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated July 23, 2022, August 2, 2022, August 12, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
RCPL was incorporated in June 1975 and the company is currently
managed by Mr. Deven Shah, Mr. Vinay Joshi and Mr. Soumen Datta.
RCPL is a specialized IT service provider engaged in consultancy
services with regards to IT systems and solutions along with
supply, installation and maintenance of IT systems/solutions to
corporates. RCPL mainly supply computer hardware (like projector,
server, laptop, computer, monitor, printer and scanner, UPS etc.)
and related software systems with customized implementation and
provides regular maintenance services of the same.
RAJARAMBAPU PATIL: Ind-Ra Gives BB- Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Rajarambapu Patil
Sahakari Sakhar Karkhana Limited (RPSSKL) a Long-Term Issuer Rating
of 'IND BB-'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR4,500.0 bil. Fund-based working capital limits assigned
with IND BB-/Stable/IND A4+ rating; and
-- INR500.0 mil. Term loans due on March 2027 assigned with IND
BB-/Stable rating.
Key Rating Drivers
The ratings reflect RPSSKL's weak credit metrics, despite its net
leverage (total adjusted net debt/operating EBITDA) reducing to
6.5x in FY22 (FY21: 8.69x; FY20: 8.40), due to a decline in total
debt to INR5,177.9 million (INR7,934.05 million), following the
repayment of its term loans. The gross interest coverage (operating
EBITDA/gross interest expense) slightly declined to 1.19x in FY22
(FY21: 1.24x; FY20: 1.21x).
Liquidity Indicator - Stretched. RPSSKL has scheduled debt
repayments of INR599.57 million and INR373.32 million for FY23 and
FY24, respectively, as against net cash accruals of INR267.03
million. The company plans to expand its Wategaon unit No.2 to
5,000 tons of cane per day (TCD) from 4,000TCD, along with a
distillery project of 2,00,000 liters per day and a distillery
project in unit No.4 in Tipphealli Jath in the next two-to-four
years. The debt service coverage ratio stood low at 0.5x in FY22
and the agency expects the debt service coverage ratio to
deteriorate further, owing to its additional capex in the medium
term. The net working capital days, although elongated, reduced to
155 days in FY22 (FY21: 277 days; FY20: 276 days), owing to
increased sales of sugar, leading to a decline in its inventory
holding period to 205 days (349 days; 351 days). The cash and cash
equivalents stood at INR54.3 million at FYE22 (FYE21: INR1.29
million; FYE20: INR14.25 million). RPSSKL's average maximum monthly
utilization of the fund-based limits was 64.41% for the 12 months
ended August 2022.
RPSSKL's revenue improved to INR13,053.29 million in FY22 (FY21:
INR9,711.40 million; FY20: INR9,075.60 million), led by increased
production. The return over capital employed stood at 5.6% in FY22
(FY21: 5.9%) and its EBITDA margin remained modest at 5.97% (9.4%;
FY20: 9.76%), owing to an increase in the cost of the goods sold as
a percentage of the revenue to 83.13% (79.97%; 80.67%) along with a
decline in export incentives to INR 323.90 million (INR651.47
million). Ind-Ra expects the profitability to remain at 6%-7% in
the near- to medium-term.
RPSSKL increased its focus on ethanol production, by expanding its
existing distillery (unit 1) capacity to 150kilo liter per day
(KLPD) in FY22 (FY21: 75KLPD). The commercial operations of the
unit would likely to start in end-November 2022, indicating a
likely annualized growth in its revenue. The government preponed
its 20% ethanol blending with petrol target to 2025 from 2030,
resulting in healthy demand prospects for ethanol producers like
RPSSKL.
The ratings are also supported by RPSSKL operational track record
of more than 50 years and its promoters' experience in the sugar
industry.
Rating Sensitivities
Positive: A substantial improvement in liquidity, while maintaining
the scale of operations, interest coverage above 1.3x, on a
sustained basis, will lead to a positive rating action.
Negative: Any deterioration in the scale of operations, liquidity
or the credit metrics or the interest coverage below 1.2x, on a
sustained basis, will lead to a negative rating action
Company Profile
RPSSKL was incorporated by late Rajarambapu Patil in 1968 under
'The Maharashtra Co-operative Societies Act 1960' as 'Walwa Taluka
Sahakari Sakhar Karkhana Limited' to produce sugar in Sangli
(Maharashtra). The company changed its name to Rajarambapu Patil
Sahakari Sakhar Karkhana Limited. RPSSKL is a part of the
Sangli-based 'Rajarambapu Group' whose diversified business profile
comprises operations in sugar production, distillery, power
generation, co-operative bank (Rajarambapu Sahakari Bank Limited),
co-operative spinning mills, milk federation, soya bean extraction
plant, educational institutes and petrol pumps. Currently, his son
Mr. Jayantrao Patil is the chairman of the sugar factory.
RPSSK has sugar mills at Sakhrale, Wategaon, Karandwadi and Jath in
Sangli with a total sugarcane crushing capacity of 16,500TCD along
with a 40 megawatt cogeneration unit and 150-KLPD distillery plant
(expanded to 150KLDP in FY22 from 75KLPD, which would be
operational from end-October 2022.
RAMA RICE: CARE Keeps B- Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Rama Rice
and General Mills (RRGM) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 11.20 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 0.80 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated September 29,
2021, placed the rating(s) of RRGM under the 'issuer
non-cooperating' category as RRGM had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. RRGM
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated August 15, 2022, August 25, 2022, September 4,
2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Karnal-based (Haryana) Rama Rice and General Mills (RRGM) was
established as a partnership firm in 1998 by Mr. Mamu Ram and his
family members comprising Mr. Sohan Lal, Mr. Dharam Pal, Mr. Sish
Pal, Mr. Rajinder Kumar and Mr. Pawan Kumar. The firm is engaged in
milling, processing and trading of basmati rice and non-basmati
rice) from its processing unit located in Karnal, Haryana.
RAMESH H: CARE Keeps B- Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Ramesh H
Beravat (RHB) continue to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.47 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 2.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 06,
2021, placed the rating(s) of RHB under the 'issuer
non-cooperating' category as RHB had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. RHB
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated August 22, 2022, September 1, 2022, September
11, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Dahod-based (Gujarat), RHB was established in September, 2018 as a
partnership firm by Mr. Ramesh Beravat, Mr. Virendra Beravat and
Mr. Pankaj Beravat, erstwhile established as proprietorship firm by
the key promoter Mr. Ramesh Beravat. RHB is engaged in the civil
construction works for Western Railway Department and Public Works
Department (PWD), Gujarat and executes projects in the state of
Gujarat. The firm is registered as 'A' class contractor with the
Government of Gujarat. RHB secures all its contracts through open
bidding process of railway department and PWD department within
Gujarat.
RAVJI MANJI: CARE Keeps C Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Ravji
Manji Sorathia and Company (RMSC) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.00 CARE C; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 10.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 7,
2021, placed the rating(s) of RMSC under the 'issuer
non-cooperating' category as RMSC had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. RMSC
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated August 23, 2022, September 2, 2022, September
12, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Gandhidham based Ravji Manji Sorathia and Co (RMSC) was promoted by
Mr. Ravji Manji Sorathia as proprietorship concern in 1990. The
firm was reconstituted as a partnership concern in 2004. RMSC is
engaged into building road and construction work and undertakes
contracts of government departments as well as private entities; it
also undertakes road construction work, commercial buildings, and
civil construction works. RMSC is “AA class” approved
Government of Gujarat (GOG) contractor and has executed contracts
for various reputed public as well as private organizations.
RELCON INFRAPROJECTS: Ind-Ra Keeps 'BB+' Rating in NonCooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Relcon
Infraprojects Ltd.'s Long-Term Issuer Rating of 'IND BB+' in the
non-cooperating category and has simultaneously withdrawn it.
The instrument-wise rating actions are:
-- INR410 mil. Fund-based working capital limits# maintained in
non-cooperating and withdrawn; and
-- INR2.090 bil. Non-fund-based working capital limits*
maintained in non-cooperating and withdrawn.
# Maintained at 'IND BB+ (ISSUER NOT COOPERATING)'/'IND A4+
(ISSUER NOT COOPERATING)' before being withdrawn
*Maintained at 'IND A4+ (ISSUER NOT COOPERATING)' before being
withdrawn
Key Rating Drivers
Ind-Ra has maintained the ratings in the non-cooperating category
because the issuer did not participate in the rating exercise,
despite requests by the agency and has not provided information
pertaining to full-year financial performance for FY21 and FY22,
sanctioned bank facilities and utilization levels, business plan
and projections for the next three years, information on corporate
governance, and management certificate.
Ind-Ra is no longer required to maintain the ratings, as the agency
has received a no-objection certificate from the lenders. This is
consistent with the Securities and Exchange Board of India's
circular dated March 31, 2017 for credit rating agencies. Ind-Ra
will no longer provide analytical and rating coverage for the
company.
Company Profile
Relcon Infraprojects undertakes civil construction work in
Maharashtra (mainly Mumbai) and Gujarat, and also manufactures
ready mix concrete.
RELIABLE FINANCE: Liquidation Process Case Summary
--------------------------------------------------
Debtor: Reliable Finance Corpn Private Limited
106, T-10, Main Patel Road
Guruarjun Nagar, Shadi Khampur
New Delhi 110008
India
Liquidation Commencement Date: November 15, 2022
Court: National Company Law Tribunal, New Delhi Bench VI
Date of closure of
insolvency resolution process: November 15, 2022
Insolvency professional: Satyendra Sharma
Interim Resolution
Professional: Satyendra Sharma
M-3, Block No. 51, 1st Floor
Anupam Plaza II
Above Axis Bank
Sanjay Place
Agra 282002
India
E-mail: satyendrasirp@gmail.com
reliablefinance.liquidation@
gmail.com
Last date for
submission of claims: December 15, 2022
RELIANCE INFRATEL: Tribunal Approves Jio's Bid to Acquire Firm
--------------------------------------------------------------
NDTV.com reports that the National Company Law Tribunal (NCLT) on
Nov. 21 gave its approval to Jio for the acquisition of Reliance
Infratel (RITL).
According to the report, the tribunal asked Jio to deposit INR3,720
crore in the State Bank of India (SBI) escrow account to complete
the acquisition of RCOM's tower and fibre assets.
On November 6, Jio had proposed to deposit INR3,720 crore in an
escrow account to complete the acquisition of Reliance Infratel
which is undergoing an insolvency resolution process.
Billionaire Mukesh Dhirubhai Ambani-led Jio placed a bid of
INR3,720 crore in November 2019 to acquire tower and fibre asset of
debt-ridden subsidiary of his younger brother Anil Ambani-managed
firm Reliance Communications, NDTV.com relays.
The Committee of Creditors has already approved the resolution plan
by Jio on March 4, 2020 with a 100 per cent vote.
According to an application moved by Reliance Projects and Property
Management Services, a subsidiary of Jio, due to the pendency of
the proceedings over the distribution of the amount and issuance of
'no dues' certificate, implementation of the resolution plan is
delayed.
"Such delay is causing severe harm to the interest of the corporate
debtor (Reliance Infratel) as well as the resolution applicant
(Jio)," it submitted before NCLT last month, recalls NDTV.com.
NDTV.com relates that Jio said the delay in acquisition of RITL
assets due to inter-creditor disputes will deteriorate the value of
assets.
RITL has fibre assets of around 1.78 lakh route kilometers and
43,540 mobile towers across India.
RITL is the holding company for tower and fibre assets of RCOM.
Reliance Project & property Management Services Limited, the
successful resolution applicant for Reliance Infratel Ltd (RITL),
had moved a fresh application in the NCLT Mumbai to complete the
acquisition process, NDTV.com notes.
The funds will be distributed amongst the lenders once the
inter-creditor dispute over the distribution of resolution funds is
settled.
SBI and a few other banks, including Doha Bank, Standard Chartered
Bank, and Emirates Bank, are engaged in a legal battle over the
distribution of funds.
The matter is pending before the Supreme Court, NDTV.com says.
NDTV.com relates that Doha Bank had challenged the classification
of claims from the indirect creditors of RITL as the financial
creditors by the resolution professional.
About Reliance Infratel
Reliance Infratel Limited (RITL) builds, owns, and operates
telecommunication towers, optic fiber cable assets, and related
assets. Its customers use the space on its telecommunication towers
to install active communication related equipment and operate their
wireless communications networks. The company serves wireless and
other communications service providers and non-communications
customers under long-term contracts.
RITL, formerly Reliance Telecom Infrastructure Limited, is a part
of the RCom group. RCom (holding company for group telecom
operations) has ~ 95% stake in RITL through its wholly-owned
subsidiary - Reliance Communications Infrastructure Limited and
other trusts and holding companies.
RITL commenced insolvency resolution process on May 15, 2019. Mr.
Manish Dhirajlal Kaneria of RBSA Advisors was appointed as interim
resolution profession of the company.
S M INTERIOR: CARE Lowers Rating on INR32.04cr LT Loan to B+
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
S M Interior Private Limited (SMIPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 32.04 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
revised from CARE D; Stable
outlook assigned
Short Term Bank
Facilities 30.00 CARE A4 Revised from CARE D
Detailed rationale and key rating drivers
The revision in the ratings assigned to the bank facilities of
SMIPL is on account of regular debt servicing for more than 90 days
as confirmed by the lender. The rating continues to be constrained
by intense competition and tender driven process risk, volatility
in input prices, small scale of operations, improvement in
financial performance in FY22 (refers to the period of April 1 to
March 31) and client concentration risk albeit reputed clientele.
The ratings, however, derive strength from satisfactory order book
size and experienced promoters.
Rating sensitivities
Positive factors – Factors that could lead to positive rating
action/upgrade:
* Sizeable increase in scale of operations from present level
(Total Operating Income above INR80.00 crore) on
sustainable basis.
* Improvement in capital structure with overall gearing on a
sustained basis.
* Improvement in the liquidity position with easing of working
capital utilization
Negative factors – Factors that could lead to negative rating
action/downgrade:
* Deterioration in the overall liquidity position.
* Deterioration in capital structure with overall gearing on a
sustained basis.
Detailed description of the key rating drivers
Key rating weaknesses
* Intense competition and tender driven process risk: Companies
have to bid for the contracts based on tenders opened by the
various public sector units. Upon successful technical evaluation
of various bidders, the lowest bid is awarded the contract. The
company receives projects which majorly are of a short to medium
tenure (i.e. to be completed within maximum period of one to two
years). Furthermore, orders are generally tender driven floated by
government units indicating a risk of non-receipt of contract in a
competitive industry.
* Volatility in input prices: The major input materials such as
bitumen, plywood, stone chips and aluminum the prices of which are
volatile. However, the contract at times contain price escalation
clause and which minimize the risk of the price volatility of the
input materials. This apart, any increase in labour prices will
further lead to cost overrun and thus would have an impact on the
profitability.
* Small scale of operations: SMIPL is a relatively small player
vis-a-vis other players in the civil construction and interior
designing solutions industry marked by total operating income of
INR70.93 crore in FY22 vis-à-vis INR50.38 crore in FY21. The
tangible net worth of the company stood at INR14.93 crore and the
total capital employed of the company was moderate at INR57.05
crore as on March 31, 2022. The small scale restricts the financial
flexibility of the company at a time of stress.
* Improvement in financial performance in FY22: The company has
generated total operating income of INR71.26 crore in FY22
vis-à-vis INR50.79 crore in FY21. However PAT margin deteriorated
from 4.98% in FY21 to 4.56% in FY22 due to increase in the interest
expense. The PBILDT interest coverage ratio moderated to 3.09x
during FY22 as against 4.08x in FY21 due to increase in finance
costs. The capital structure of the company witnessed moderation in
FY22 with overall gearing moderating from 2.54x as on March 31,
2021 to 2.83x as on March 31, 2022 on account of increase in total
debt. The debt increased for acquisition of equipment loan to
execute new orders received. Also, working capital utilisation
witnessed an increase. The average utilization of working capital
limits also remained high at 92% for the last twelve months ended
October 2022.
* Client concentration risk albeit reputed clientele: SMIPL
executes orders for various public and private sector units and
government departments like Indian Railway (N.F.R) Irrigation &
Waterways directorate (Govt. of W.B), Your Choice etc. and earns
revenue of more than 90% of its total operating income from the
above clients which exposes it to client concentration risk.
However, the company has long standing relationship with these
clients which offset the risk to some extent. Further the clients
of the company are reputed government players and hence, default
risk is minimal. The company realizes money within 30-45 days from
the date of submission of bills subject to deduction of retention
money at a rate of 6% and applicable government taxes.
Key rating strengths
* Satisfactory order book size: The company has satisfactory order
book position of INR222.68 Crore (3.12x of TOI of FY22) as on June
30, 2022 demonstrating revenue visibility going forward.
* Experienced promoters: Mr. Sahabuddin Molla (Managing Director)
along with his wife Ms. Naima Parvin (Director) looks after overall
management of the company. Mr. Sahabuddin Molla has around two
decades of experience in civil construction and interior designing
business and is ably supported by a team of experienced
professionals who have rich experience in the same line of
business.
Liquidity: Stretched
The liquidity profile of the company is stretched marked by tightly
matched accruals to repayment obligations. The average utilization
of working capital limits also remained high at 92% for the last
twelve months ended October 2022. Cash and Bank balance stood at
INR5.04 crore as on March 31, 2022. The company has a debt
repayment obligation of INR9.07 crore in FY23.
S.M Interior Private Limited (SMIPL) was incorporated in 2011 by
Mr. Sahabuddin Molla. Since its inception, the company has been
engaged in civil construction works, mechanical works and interior
decoration projects. The company's main client includes Tata Steel
Limited, Haldia dock complex (Kolkata Port Trust) and Indian
Railway (N.F.R) Irrigation & Waterways directorate (Govt. of West
Bengal).
Mr. Sahabuddin Molla has around two decades of experience in the
same line of industry he looks after the day-to-day operations of
the company. He is ably supported by other director Mrs. Naima
Parvin, along with the team of experienced professionals who have a
rich experience in similar line of business.
SAMKWANG INDIA: Ind-Ra Moves BB Issuer Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Samkwang India
Electronic Private Limited's Long-Term Issuer Rating to the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR250 mil. Fund-based limits migrated to non-cooperating
category with IND BB (ISSUER NOT COOPERATING)/IND A4+ (ISSUER
NOT COOPERATING) rating; and
-- INR350 mil. Term loan due on April 2024 migrated to non-
cooperating category with IND BB (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
October 14, 2021. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
Company Profile
Incorporated on January 3, 2018, Samkwang India Electronic is
promoted by Sungje Cho and Sung Gon Ryu. Its major stake is held by
a Korea-based Samkwang Wintech. The plant is based in Greater Noida
(Uttar Pradesh). Samkwang is the first vendor company for the
Samsung Group engaged in moulding, assembling and paint job for
Samsung Electronics Co.
SANATAN MERCHANTS: Ind-Ra Affirms BB Issuer Rating, Outlook Stable
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Sanatan Merchants
Private Limited's (SMPL) Long-Term Issuer Rating at 'IND BB'. The
Outlook is Stable.
The instrument-wise rating actions are:
-- INR174.5 mil. (increased from INR149.5 mil.) Fund-based
facilities affirmed with IND BB/Stable/ IND A4+ rating; and
-- INR25.5 mil. Proposed fund-based facilities assigned with
IND BB/Stable/ IND A4+ rating.
Key Rating Drivers
The affirmation reflects SMPL's continued small scale of
operations, as indicated by its revenue of INR781.56 million in
FY22 (FY21: INR905.14 million). In FY21, the revenue had increased
by 15.96% yoy owing to a surge in demand from the agricultural
segment, with demand for equipment for insecticides and cleaning
sprays, which comes under agriculture machinery, having increased
significantly during the pandemic. In FY22, the revenue decreased
by 13% yoy due to a decline in demand for agricultural machinery,
resulting from the receding impact of the pandemic. In 5MFY23, the
company booked a revenue of INR344.57 million. Ind-Ra expects the
revenue to improve marginally on yoy basis in FY23 but remain below
FY21 levels due to lower demand for agricultural equipment.
The ratings reflect SMPL's modest EBITDA margins due to the trading
nature of business. In FY21, the company had incurred a one-time
expenditure of INR45 million due to an issue related to differences
in customs prices. This expenditure was not incurred in FY22, and
consequently, the margin improved to 4.03% during the year(FY21:
3.6%). The RoCE was 8.9% in FY22 (FY20: 9.9%). The EBITDA margins
stood at 3.71%5MFY23. Ind-Ra expects the margin to be stable on a
yoy basis in FY23.
The ratings factor in SMPL's weak credit metrics due to the modest
margins. The gross interest coverage (operating EBITDA/gross
interest expense) improved marginally to 1.61x in FY22 (FY21:
1.52x) owing to a fall in the interest costs, resulting from a
decline in the interest rates. The net leverage (total adjusted net
debt/operating EBITDAR) deteriorated to 6.86x in FY22 (FY21: 6.18x)
because of increase in the total debt to INR 216.76 million in FY22
(FY21: INR205.76 million). Ind Ra expects the credit metrics to
improve in the near term owing to scheduled debt repayments.
Liquidity Indicator - Stretched: The average maximum utilization of
the fund-based facilities was 90.11% over the 12 months ended
August 2022. The net working capital cycle elongated in FY22 to 155
days (FY21: 122 days) due to an increase in the inventory days to
147 days (108 days). The cash flow from operations remained
negative and deteriorated further to INR19.17 million in FY22
(FY21: negative INR38.38 million). The free cash flow too remained
negative and deteriorated to INR22.03 million in FY22 (FY21:
negative INR38.97million). The cash and cash equivalent stood at
INR1.07 million at FYE22 (FYE21: INR4.13 million). The company has
scheduled debt repayments of INR8.7 million in FY23 and INR8.6
million in FY24. The company does not have any capital market
access and depends on one bank for its funding.
The ratings continue to be supported by the promoter's experience
of over three decades in the trading hand tools and power tools
such as marble, stone, granite, and wood cutting machines,
pesticide sprayers, and rice processing machines, personal care
products, and agricultural equipment.
Rating Sensitivities
Positive: Improvement in the credit metrics as well as the
liquidity profile, on a sustained basis, will be positive for the
ratings.
Negative: The interest coverage ratio falling below 1.6x and stress
on the liquidity position, both on a sustained basis, will be
negative for the ratings.
Company Profile
Incorporated in 1994 and with its registered office in Kolkata,
SMPL deals in trading of hand tools and power tools such as marble,
stone cutting machines, granite cutting machines, wood cutting
machines, pesticide sprayers and rice processing machines, and
trades writing, stationary, personal care products and other
accessories. The company is managed by its three directors - Binod
Maroti, Nirav Maroti and Anil Gupta.
SANDBERRY FIBRETECH: CARE Assigns B+ Rating to INR66.70cr Loan
--------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Sandberry Fibretech Private Limited (SFPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 66.70 CARE B+; Stable; Assign
Facilities
Short Term Bank 1.30 CARE A4 Assigned
Facilities
Detailed Rationale & Key Rating Drivers
The ratings assigned to the bank facilities of SFPL remains
constrained on account of project implementation risk associated
with on-going debt funded capex. The ratings further remain
constrained due to highly competitive and fragmented nature of
industry with raw material price fluctuation risk and exposure to
volatility in finished goods prices.
The ratings, however, derive strength from experienced promoters
through group entities along with revenue visibility through LOI
and expected benefits through government incentives.
Rating Sensitivities
Positive Factors - Factors that could lead to positive rating
action/upgrade:
* Stabilization of operations with successful completion of the
project within time and cost parameters
Negative Factors- Factors that could lead to negative rating
action/downgrade:
* Delay in project execution and commencement of operations putting
pressure on liquidity
* Changes in government regulations which adversely impacts the
business of the company
Detailed description of the key rating drivers
Key Rating Weakness
* Project implementation risk associated with on-going debt-funded
capex: SFPL is establishing Polyester Staple Fibre (PSF)
manufacturing unit in Morbi (Gujarat) with estimated project costs
of INR90.52 crore to be funded through term loan of INR44.37 crore,
unsecured loans of INR19.15 crore and remaining through promoter's
contribution. Operations are expected to commence from July 2023
with installed capacity of 76.04 MTPA. Till November 3, 2022, SFPL
has incurred ~INR50 crore towards project. With 45% of costs yet
to be incurred, project completion and stabilization risk persist.
* Highly competitive and fragmented nature of industry with raw
material price fluctuation risk: The company operates in the
textile manufacturing and processing industry which is highly
competitive industry with presence of numerous independent
small-scale enterprises owing to low entry barriers leading to high
level of competition in the processing segment. Furthermore, the
Indian textile industry also faces competition from the low-cost
countries like China and Bangladesh. The intense competition in the
textile processing industry also restricts ability to completely
pass on volatility in input cost to its customers, leading to lower
profit margins. Further, the basic raw material of the company is
PET bottles which is the downstream petroleum product and hence the
prices of which are linked to international crude prices.
* Exposure to volatility in finished goods prices: The price of
recycled PSF (RPSF) is benchmarked against the prices of virgin
PSF, which in turn, is linked to the prices of Poly Terephthalic
acid (PTA) and mono ethylene glycol (MEG) (i.e., derivatives of
crude oil). PSF's prices are at a discount (approximately 15-20%)
to virgin PSF prices. Any downward movement in crude oil prices
makes RPSF less attractive vis-à-vis virgin PSF, as the spread
between the two gets narrowed. However, the risk is mitigated to an
extent as Polyethylene terephthalate (PET) waste does not have any
other significant usage apart from that in PSF manufacturing.
Hence, recycled PSF manufacturers have ability to negotiate input
raw material prices in times of declining PSF prices.
Key Rating Strength
* Experienced Promoters: SFPL is promoted by 4 promoters viz. Mr.
Kishan Khunt, Mr. Nirmesh Khunt, Mr. Nilesh Thummur and Mr. Vaibhav
Pragada. Mr. Kishan Khunt holds Bachelor's Business Administration
and is involved in plastic Injection moulding industry for past 6
years and is currently a partner at Henki Fibre LLP and M/s. Nova
Plastech. He will look after manufacturing and production of SFPL.
Mr. Nirmesh Khunt has 4 years of experience in plastic industry
through Nova plastech. He will look after procurements. Further, it
has employed technical specialist for smooth execution of project.
Overall, operations of the entity will be supported by qualified
employees as well. With strong industrial background and experience
in industry, SFPL will be able to successfully complete project and
stabilize operations.
* Revenue Visibility through LOI along with benefits from
government incentives: SFPL has received Letter of Intent (LOI)
from Kanchan India Limited for supply of 60 MTPA polyester stable
fiber (PSF) which is around 80% of proposed installed capacity of
SFPL. The company has already identified prospective customer and
has planned sales accordingly. The PSF will ultimately be sold to
manufacturing units for pillows, soft toys, cushions, clothing and
home furnishing items like curtains, carpets, wall coverings and
sheets etc. Further, unit is also eligible for 40% capital subsidy
under Gujarat Industrial Policy – 2020 under Scheme of Assistance
for Common Environment Infrastructure.
Rajkot, Gujarat based Sandberry Fibretech Private Limited (SFPL) is
incorporated in January, 2022, by 4 promoters viz. Mr. Nilesh
Thummar, Mr. Kishan Khunt, Mr. Mirmesh Khunt and Mr. Vaibhav
Pragada. SFPL is implementing greenfield project to manufacture
Polyester Staple Fibre (PSF) from post consumed PET bottles with
expected project costs of INR90.52 crore with project gearing of
2.35 times. SFPL will operate from its sole manufacturing facility
at Morbi, Gujarat and expects to commence operations from July 2023
with installed capacity of 76.04 MTPA. PSF finds its application in
pillows, soft toys, cushions, clothing and home furnishing items
like curtains, carpets, wall coverings, sheets, etc.
SANDHU FARMS: CARE Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sandhu
Farms Private Limited (SFPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 3.03 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated September 13,
2021, placed the rating(s) of SFPL under the 'issuer
non-cooperating' category as SFPL had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. SFPL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated July 30, 2022, August 10, 2022, August 19,
2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Sandhu Farms Private Limited (SFP) was incorporated in August-2013
and is promoted by Mr. Manjit Singh Sandhu and Mrs Updesh Kaur. SFP
undertook a project pertaining to setting up a marriage palace
under the name of 'Fort Patiala' having 9 rooms and 2 banquet halls
at Rajpura Road, Patiala. The same is spread on a land area of 4
acres. The palace got operational from October, 2016 with
completion of capex. The company earns income from letting of
banquet halls (having accommodation facility of maximum 500 people)
and rooms on rent for the purpose of marriage, parties etc.
SASA MUSA: Insolvency Resolution Process Case Summary
-----------------------------------------------------
Debtor: Sasa Musa Sugar Works Pvt. Ltd.
Mercantile Building
9/12 Lalbazar Street
Kolkata 700001
Insolvency Commencement Date: November 17, 2022
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: May 16, 2023
Insolvency professional: Shri Sachin Gopal Jathar
Interim Resolution
Professional: Shri Sachin Gopal Jathar
B-1/8, Samadrita
EKTP Phase-III
EKT, Kolkata
West Bengal 700107
E-mail: sgjathar.ip@gmail.com
- and -
AAA Insolvency Professionals LLP
Mousumi Co. Op. Housing Society
15B, Ballygunge Circular Road
Kolkata 700019
E-mail: ibc@sasamusasugar.com
Last date for
submission of claims: December 3, 2022
SAVI LEATHERS: Ind-Ra Moves B+ LT Issuer Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Savi Leathers'
Long-Term Issuer Rating of 'IND B+' to the non-cooperating category
and has simultaneously withdrawn the same.
The instrument-wise rating actions are:
-- INR288 mil. *Fund-based working capital limits migrated to
non-cooperation category and withdrawn;
-- INR60 mil. ^Non-fund-based working capital limits migrated to
non-cooperation category and withdrawn; and
-- INR107 mil. #Term loans due on FY30 migrated to non-
cooperation category and withdrawn.
*Migrated to IND B+ (ISSUER NOT COOPERATING)/IND A4 (ISSUER NOT
COOPERATING) before being withdrawn
^ Migrated to IND A4 (ISSUER NOT COOPERATING) before being
withdrawn
# Migrated to IND B+ (ISSUER NOT COOPERATING) before being
withdrawn
Key Rating Drivers
Ind-Ra has maintained the ratings to the non-cooperating category
because SL did not participate in the rating exercise despite
requests by the agency and has not provided information pertaining
to the full-year financial performance in FY22, sanctioned bank
facilities and utilization, business plan and projections for the
next three years, information on corporate governance.
Ind-Ra is no longer required to maintain the ratings, as the agency
has received a no-objection certificate from the lender. This is
consistent with the Securities and Exchange Board of India's
circular dated March 31, 2017 for credit rating agencies. Ind-Ra
will no longer provide analytical and rating coverage for the
company.
Company Profile
Incorporated in 2009, SL manufactures and exports leather garments
and accessories. It has clients in the US, Germany, Italy, the
Netherlands and Australia.
SCSL AGRO: Ind-Ra Withdraws B+ LongTerm Issuer Rating
-----------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn SCSL Agro Private
Limited's (SAPL) Long-Term Issuer Rating of 'IND B+'. The Outlook
was Stable.
The instrument-wise rating actions are:
-- The 'IND B+' rating on the INR900 mil. Proposed term loan is
withdrawn; and
-- The 'IND B+' rating on the INR100 mil. Proposed fund-based
facilities is withdrawn.
Key Rating Drivers
Ind-Ra is no longer required to maintain the ratings as the company
did not proceed with the instrument as envisaged. The agency will
no longer provide rating and analytical coverage for SAPL.
Company Profile
Incorporated in 2019, SAPL is setting up a 90-kilo liter per day
ethanol manufacturing plant in Hassan (Karnataka).
SHREE KRISHNA: Ind-Ra Affirms BB+ Issuer Rating, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Shree Krishna
Steels (SKS) Long-Term Issuer Rating at 'IND BB+'. The Outlook is
Stable.
The instrument-wise rating action is:
-- INR500 mil. Non-fund-based working capital Facilities affirmed
with IND BB+/Stable/IND A4+ rating.
Note: The facility includes INR230 million fund-based facility as a
sub-limit.
Key Rating Drivers
The affirmation reflects SKS's continued moderate credit metrics.
The gross interest coverage (operating EBITDA/gross interest
expense) improved to 10.67x in FY22 (FY21: 9.00x) due to an
increase in the absolute EBITDA to INR160 million (INR81 million).
The net financial leverage (adjusted net debt/operating EBITDA)
deteriorated to 1.99x in FY22 (FY21: 0.98x) due to an increase in
debt, specifically the cash credit facility. In FY23, Ind-Ra
expects the credit metrics to deteriorate due to an increase in
debt coupled with a likely fall in the absolute EBITDA.
The ratings reflect SKS's continued medium scale of operations, as
indicated by revenue of INR3,406 million in FY22 (FY21: INR2,064
million). The revenue increased in FY22 due to a sharp rise in
steel prices. SKS achieved a revenue of INR1,826 million in 1HFY23.
In FY23, Ind-Ra expects the revenue to improve marginally on a yoy
basis due to an increase in the demand for iron and steel products
in India.
Liquidity Indicator –Stretched: SKS does not have any capital
market exposure and relies on banks and financial institutions to
meet its funding requirements. The average maximum utilization of
the fund-based limits was 42% and that of the non-fund-based limits
was 24% during the 12 months ended September 2022. SKS's medium net
working capital cycle deteriorated to 72 days in FY22 (FY21: 68
days) due to an increase in inventory days (FY22: 55; FY21: 54) and
a fall in creditor days (1; 3). The cash and cash equivalents stood
at INR0.4 million at FYE22 (FYE21: INR12 million). The cash flow
from operations remained negative but improved to INR186 million in
FY22 (FY21: negative INR269 million) due to the improvement in the
EBITDA and favorable changes in the working capital. The free cash
flow also remained negative but improved to INR189 million in FY22
(FY21: negative INR269 million).
The ratings, however, are supported by the healthy EBITDA margins.
The margin rose to 4.7% in FY22 (FY21: 3.92 %) due to an increase
in the selling price of the products. The ROCE was 24% in FY22
(FY21: 16%). In 1HFY23, the EBITDA margin was 0.7%. In FY23, Ind-Ra
expects the EBITDA margin to decline on a yoy basis due to a fall
in the selling price.
The ratings continue to be supported by the promoters' experience
of over four decades in the metal industry.
Rating Sensitivities
Positive: An increase in the scale of operations on a sustainable
basis, along with an improvement in the overall credit metrics,
with the interest coverage remaining above 2x, could lead to a
positive rating action.
Negative: A decline in the scale of operations, leading to
deterioration in the overall credit metrics, with the interest
coverage declining below 1.5x and pressure on the liquidity
position, could lead to a negative rating action.
Company Profile
Incorporated in 1980, SKS is a partnership firm located at Mumbai.
It is involved in the trading of iron and steel products such as
hot-rolled coils, galvanized plain coils and, color-coated coil,
and cold rolled close annealed coils. Previously, the company used
to import products and sell in the domestic market, but in FY21,
the company started procuring the products from domestic players,
mainly from Arcelor Mittal Nippon Steel India. It sells the
products to customers on just-in-time basis. SKS caters to
customers located across India, but it mainly operates in
Maharashtra.
SINGH ENTERPRISES: Ind-Ra Moves BB Issuer Rating to NonCooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Singh Enterprises'
Long-Term Issuer Rating to the non-cooperating category. The issuer
did not participate in the rating exercise, despite continuous
requests and follow-ups by the agency. Therefore, investors and
other users are advised to take appropriate caution while using the
rating. The rating will now appear as 'IND BB (ISSUER NOT
COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR25 mil. Fund-based working capital limits migrated to non-
cooperating category with IND BB (ISSUER NOT COOPERATING)
rating;
-- INR200 mil. Non-fund-based working capital limits migrated to
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating; and
-- INR75 mil. Proposed fund-based working capital limits*
migrated to non-cooperating category with IND BB (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
October 12, 2021. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
Company Profile
Singh Enterprises was incorporated in 1992 as a proprietorship
firm. Its registered office is in Ranchi, Jharkhand. It is managed
by Mr. Ranjan Kumar. The firm is engaged in the design, execution,
supply, installation, testing, commissioning of interlocking
system, and maintenance of safety-related rail signaling and
control systems. It also executes projects involving the laying of
cables, track circuiting and other telecom works.
SULTANPURE TEXTILE: Ind-Ra Gives B+ Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Sultanpure Textile
Mills Private Limited a Long-Term Issuer Rating off 'IND B+'. The
Outlook is Stable.
The instrument-wise rating actions are:
-- INR120 mil. Fund-based working capital limit assigned with IND
B+/Stable/IND A4 rating; and
-- INR68.5 mil. Term loan due on April 2027 assigned with IND B+/
Stable rating.
Key Rating Drivers
The ratings reflect STMPL's small scale of operations as indicated
by revenue of INR1,018.2 million in FY22 (FY21: INR825.11 million).
The growth in revenue was due to execution of a higher number of
orders. Ind-Ra expects the revenue to remain at similar levels in
FY23 due to sustained demand for industrial fabric. FY22 numbers
are provisional in nature.
The ratings also factor in STMPL's modest EBITDA margin of 1.49% in
FY22 (FY21: 1.28%) with a return on capital employed of 5.2%
(3.1%). In FY22, the EBITDA margin improved due to a decline in
overall expenses. In FY23, Ind-Ra expects the EBITDA margin to
remain at a similar level due to the similar nature of orders.
The ratings also reflect the company's modest credit metrics as
reflected by interest coverage (operating EBITDA/gross interest
expenses) of 1.35x in FY22 (FY21: 0.98x) and net leverage (total
adjusted net debt/operating EBITDAR) of 6.65x (12.44x). The
improvement in credit metrics was driven by a decline in external
borrowings and associated interest cost. However, the agency
expects the credit metrics to deteriorate in FY23 as STMPL borrowed
guaranteed emergency credit line of INR40 million during FY23.
Liquidity Indicator - Poor: STMPL's average maximum utilization of
the fund-based limits was 89.35% during the 12 months ended October
2022. The cash flow from operations declined to INR81.49 million in
FY22 (FY21: INR128.62 million) owing to unfavorable changes in
working capital. The net working capital cycle improved to 36 days
in FY22 (FY21: 42 days) mainly due to a reduction in the receivable
period to 29 days (55 days). The cash and cash equivalents stood at
INR20.61 million at FYE22 (FYE21: INR4.54 million). The company has
scheduled term debt repayments of INR11.20 million, each, in FY23
and FY24. However, STMPL does not have any capital market exposure
and relies on banks and financial institutions to meet its funding
requirements.
However, the ratings are supported by the promoters' nearly two
decades of experience in the textile industry, leading to
established relationships with customers as well as suppliers.
Rating Sensitivities
Positive: A substantial increase in the scale of operations, along
with an improvement in the liquidity position and overall credit
metrics with the interest coverage increasing above 1.6x, all on a
sustained basis, could lead to a positive rating action.
Negative: A decline in the scale of operations, leading to
deterioration in the overall credit metrics or/and weakening of the
liquidity position, could lead to a negative rating action.
Company Profile
Established in 1994, Ichalkaranji, Maharashtra-based STMPL is
engaged in the designing and manufacturing of industrial fabrics
for use in laminated, pharmaceutical, abrasive and self-adhesive
tapes. Gajanan Sultanpure and Tushar Sultanpure are the promoters.
TIRUPATI STEEL: CARE Keeps B- Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Tirupati
Steel Enterprises (TSE) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 20.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 6,
2021, placed the rating(s) of TSE under the 'issuer
non-cooperating' category as TSE had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. TSE
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated August 22, 2022, September 1, 2022, September
11, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Tirupati Steel Enterprises (TSE) was set up as a proprietorship
concern in 1993 by Raipur-based Shri Sambhudayal Garg. Since
inception, TSE is engaged in the trading of various steel related
products. It is also an authorized dealer of Steel Authority of
India Limited (SAIL) and Jindal Steel and Power Ltd (JSPL) for
selling structural steel products like angle, channels, beams and
columns.
TULSI DEVI: CARE Keeps B- Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Tulsi Devi
Educational Society (TDES) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 1.86 CARE B-; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 3.70 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 13,
2021, placed the rating(s) of TDES under the 'issuer
non-cooperating' category as TDES had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. TDES
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated August 29, 2022, September 8, 2022, September
18, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Tulsi Devi Educational Society was formed in April, 1998 by Mr. Har
Bhagwan Munjal (Chairman), Mrs Rita Munjal (Secretary) and Ms Kirti
(Member) as the society members. The society was formed with an
objective to provide higher education in the field of engineering,
technology, science and management. The society is running two
schools and a college by the name Tulsi Public School and Tulsi
College of Education.
UNITED BROTHERS: Ind-Ra Moves BB- Issuer Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated United Brothers
Polytech LLP's Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR80 mil. Fund-based limits migrated to non-cooperating
category with IND BB- (ISSUER NOT COOPERATING) rating; and
-- INR50 mil. Non-fund-based limits migrated to non-cooperating
category with IND BB- (ISSUER NOT COOPERATING)/IND A4+
(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
October 8, 2021. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
Company Profile
United Brothers Polytech was established as a partnership firm in
August 2012. The firm is an agent and a consignment stockist for
the distribution and marketing of HPCL Mittal Energy's (NCDs rated
at 'IND AA+/Stable') polypropylene products in Maharashtra, Daman
Silvassa and Goa.
VANTA BIOSCIENCE: Ind-Ra Moves D Issuer Rating to NonCooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Vanta Bioscience
Limited's Long-Term Issuer Rating to the non-cooperating category.
The issuer did not participate in the rating exercise despite
continuous requests and follow-ups by the agency. Therefore,
investors and other users are advised to take appropriate caution
while using these ratings. The rating will now appear as 'IND D
(ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR23 mil. Fund-based working capital limit (Long-term)
migrated to non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating; and
-- INR187.1 mil. Term loan (Long-term) due on December 2027
migrated to non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
August 13, 2021 Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
Company Profile
Promoted by Mohan Krishna and Dopesh Raja, Vanta Bioscience was
incorporated in 2016 to undertake research and development,
clinical and pre-clinical studies.
VANTAGE MACHINE: CARE Keeps C Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Vantage
Machine Tools Private Limited (VMTPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 CARE C; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated September 6,
2021, placed the rating(s) of VMTPL under the 'issuer
non-cooperating' category as VMTPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. VMTPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated July 23, 2022, August 2, 2022,
August 12, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Vantage Machine Tools Private Limited (VMTPL) was promoted by Shri
Potluru Mohana Murali Krishna in September 2013 for undertaking
manufacturing of Special Purpose Machines like CNC (Computer
Numerical Control) machines and Hydraulic machines. These machines
are widely used in Power plants, Ports, Steel plants, Sugar
industries, cement industries, heavy fabrication, chemical and
processing equipments of aerospace and defence sectors. The
manufacturing facility of the company is located at Gollapalli
village of Krishna District in the state of Andhra Pradesh with an
annual installed capacity of 360 numbers of Special Purpose
Machines.
VANTAGE SPINNERS: CARE Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Vantage
Spinners Private Limited (VSPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 68.75 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated September 1,
2021, placed the rating(s) of VSPL under the 'issuer
non-cooperating' category as VSPL had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. VSPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated July 18, 2022, July 28, 2022, August 7, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Vantage Spinners Private Limited (VSPL) was incorporated on July
28, 2006, by Mr. Potluru Mohana Murali Krishna, Mr. Potluru Soma
Sekhar and Ms Nandamuri Meenalatha. VSPL is engaged in
manufacturing of cotton yarn (40s and 60s count) with an installed
capacity of 31,500 spindles. The company's manufacturing plant is
located at Nuzividu Mandalam in Krishna district, Andhra Pradesh.
VELNIK INDIA: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: M/s Velnik India Limited
E-10, Krishi Mandi
Sojat City, Sojat
Pali 306104, RJ IN
Khasra Nos. 516-517
Near Dutt Cold Storage
Bijalpur, Indore
Madhya Pradesh 452012
262, 269 to 275, 276/1, 290, 291/1/4
Kalab Kalan Road Dholi Magri
Choraha, Kalakot
Tehsil-Raipur, Pali 306304
RJ IN
S-1 & S-2, Takshashila Parisar
A.B. Road, Near Rajendra Nagar PS
Indore-452012 (MP)
Insolvency Commencement Date: November 18, 2022
Court: National Company Law Tribunal, Surat Bench
Estimated date of closure of
insolvency resolution process: May 15, 2023
Insolvency professional: CA Kailash Thanmal Shah
Interim Resolution
Professional: CA Kailash Thanmal Shah
505, 21st Century Business Centre
Near World Trade Centre
Ring Road, Surat 395002
E-mail: ipktshah@gmail.com
cirp.velnik@gmail.com
Last date for
submission of claims: November 30, 2022
VIJAYA DURGA: CARE Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Vijaya
Durga Green Fields Private Limited (VDGFPL) continues to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated September 3,
2021, placed the rating(s) of VDGFPL under the 'issuer
non-cooperating' category as VDGFPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. VDGFPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated July 20, 2022, July 30, 2022,
August 10, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Vijaya Durga Green Fields Private Limited was promoted by Smt.
Nandamuri Meenalatha and Smt. Potluru Sita Ratnam in December 2013.
The company is engaged in trading of cotton lint and cotton yarn
and is the supplier of cotton lint to various spinning units in the
major cotton growing region in Krishna District, Andhra Pradesh.
The company started commercial operations from January 2014
onwards.
VITTHAL GAJANAN: CARE Keeps D Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Vitthal
Gajanan Sugar Private Limited (VGSPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 17.60 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated September 7,
2021, placed the rating(s) of VGSPL under the 'issuer
non-cooperating' category as VGSPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. VGSPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated July 24, 2022, August 3, 2022,
August 13, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Satara- based (Maharashtra) VGSPL was incorporated in 2013 by Mr.
Chandrakant Pawar, Mr. Yashwant Mali and Mr. Prasad Jugdar. The
company is in the process of setting up a jaggery manufacturing at
Satara, Maharashtra.
WALCHANDNAGAR INDUSTRIES: Ind-Ra Assigns B- LT Issuer Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Walchandnagar
Industries Limited (WIL) a Long-Term Issuer Rating of 'IND B-'. The
Outlook is Stable.
The instrument-wise rating actions are:
-- INR2,145.40 bil. Fund-based working capital limit assigned
with IND B-/Stable/IND A4 rating; and
-- INR5,095.60 bil. Non-fund-based working capital limit assigned
with IND A4 rating.
Key Rating Drivers
Restructuring of KKR's debt: WIL has delayed in servicing KKR India
Financial Services Private Limited's term loan and the
non-convertible debentures (NCDs) issued to KKR India Debt
Opportunities Fund II in FY21. KKR assigned the entire debt of
INR2,073 million on March 31, 2022 to Assets Care and
Reconstruction Enterprise Limited (ACRE) for a settlement value of
INR720 million, of which INR620 million was funded by ACRE and the
remaining INR100 million was funded by WIL, via inter-corporate
deposits. Furthermore, WIL needs to issue 7% of the total issued
and paid-up share capital in favor of ACRE. The company plans to
repay ACRE's loan by selling its identified non-core assets. As per
the standstill agreement between WIL and ACRE, which was signed on
19 July 2022, all the existing event of default shall be waived
during the standstill period of April 12, 2022 to April 12, 2023.
WIL has to pay monthly interest of INR8.27 million during the
standstill period, an aggregate payment of INR250 million at the
end of the standstill period and maintain a minimum operating
EBITDA of INR550 million FY23 onwards. The timely execution of the
standstill conditions remains a rating monitorable.
Liquidity Indicator- Poor: WIL's average maximum utilization of the
fund-based limit was 97.15% for the 12 months ended September 2022.
Its cash and cash equivalent stood at INR29.40 million at FYE22
(FYE21: INR29.20 million; FYE20: INR32.10 million). The cash flow
from operations reduced to negative INR423.10 million in FY22
(FY21: INR25.60 million; FY20: negative INR97.50 million), due to
high finance cost and an unfavorable change in the working capital.
The free cash flow remained negative at INR454 million in FY22
(FY21: negative INR41 million; FY20: negative INR248.20 million),
mainly due to negative cash flows from operations. The net cash
conversion cycle increased to 692 days in FY22 (FY21: 572; FY20:
1,030), due to an increase in the inventory days to 581 (493;
1,078) and debtor days to 269 (235; 243). During FY09, WIL had
received two large-size orders from Tamil Nadu Electricity Board
(TNEB), totaling around INR11,250 million and Tendaho Phase-I & II,
Ethiopia, totaling INR7,000 million- 8,000 million, with a delivery
period up to two-to-three years. However, the projects were
delayed, leading to higher inventory and debtors days, thereby
resulting in cash flow crisis. After that WIL has not undertaken
any new engineering, procurement and construction projects and is
only working on the existing projects until the funds are released
from the customers. Ind-Ra expects its liquidity to remain poor in
the medium term. WIL has repayment obligation of INR490 million for
FY24.
Small Scale of Operations: In FY22, the company's revenue reduced
8.12% to INR2,991.90 million (FY21: INR3,256.40 million; FY20:
INR2,980.50 million). Its heavy engineering division (HED)
contributed 79.95% to the total revenue in FY22 (FY21: 86.19%;
FY20: 78.71%) and the foundry division contributed around 14.05%
(10.62%, 15.39%). The instrumentation division accounted for the
remaining revenue. The aerospace and missile business contributed
around 23.83% to the HED revenue in FY22 (FY21: 29.39%; FY20:
24.67%), followed by the defense business (22.47%; 20.56%; 9.30%),
the gear business (around 10.46%; 10.47%; 10.91%). The revenue from
the nuclear business declined to INR32.71 million (accounting for
1.09% of the total revenue) in FY22 (FY21: INR322.81 million
(9.91%)), due to no new tenders floated by Nuclear Power
Corporation of India Limited ('IND AAA'/Stable) during the COVID-19
period till the time the previous orders were fully implemented.
WIL received order worth INR1,800 million from NPCIL until October
2022. The revenue from the aerospace and missile business reduced
to INR712.97 million in FY22 (FY21: INR957.01 million), due to raw
materials availability issues during the COVID-19 period, leading
to a delay in the execution. Nevertheless, WIL has recently
received orders worth more than INR2000 million from the aerospace
business. In 1QFY23, WIL achieved INR 648.2 million revenue. The
HED contributed around 73% and the foundry division contributed
around 18.75% to the revenue. As of September 30, 2022, WIL had
INR8,660 million unexecuted orders.
Modest EBITDA Margin: WIL's EBITDA margin remained modest at 7.39%
in FY22 (FY21: 6.06%; FY20: 11.30%), due to the variation in the
cost of goods sold, following the change in product mix. The return
on capital employed remained negative 0.02% in FY22 (FY21: negative
0.47%). WIL executed some strategic projects at a loss in the
defense and nuclear business during FY21-FY22. Although the
company's absolute EBITDA increased to INR221.10 million in FY22
(FY21: INR197.50 million; FY20: INR336.80 million), it incurred a
net loss of INR380.7 million (INR 572.4 million; INR 654.6
million). As of 1QFY23, the company had incurred an operating loss
of INR45.5 million (1QFY22: negative INR25.6 million).
Weak Credit Metrics: The gross interest coverage (operating
EBITDA/gross interest expense) remained weak at 0.31x in FY22
(FY21: 0.25x; FY20: 0.39x) and the net leverage (total adjusted net
debt/operating EBITDA) deteriorated to 22.17x (23.07x; 13.06x),
owing to an increase in its total debt to INR4,931.80 million
(INR4,586.50 million; INR4,432.10 million).
Established Track Record and Experienced Promoters: WIL was
promoted by (late) Seth Walchand Hirachand Doshi and is in the
business for more than 100 years. WIL has presence in the areas
such as defense, nuclear, missiles, aerospace and industrial
products such as gears, centrifugal, castings and gauges, crushing
and grinding solutions and process equipment. Mr. Chakor Lalchand
Doshi, the current the chairman of the company, has over four
decades of experience.
Rating Sensitivities
Positive: A substantial improvement in liquidity, on a sustained
basis, would be positive for the rating.
Negative: A substantial deterioration in liquidity, on a sustained
basis, would be negative for the rating.
Company Profile
Established in 1908, WIL provides engineering, procurement and
construction solutions and supplies machinery and equipment to
aerospace and missile, defense, nuclear, gear, centrifugal, sugar
plants, among others. WIL has heavy engineering division, foundry
division and instrumentation division.
[*] Creditors Realise INR2.43 lakh crore Through IRP Until Sep 2022
-------------------------------------------------------------------
The Economic Times reports that banks, financial institutions and
other creditors of stressed companies have realised INR2.43 lakh
crore through NCLT-supervised insolvency resolution processes
against total claims of INR7.91 lakh crore till September 30, 2022.
So far, 532 CIRPs (Corporate Insolvency Resolution Process) yielded
resolution plans, said the quarterly report of the Insolvency and
Bankruptcy Board of India (IBBI).
"Till September 30, 2022, the creditors have realised INR2.43 lakh
crore under the resolution plans.
"The fair value of the assets available with these CDs, when they
entered the CIRP was estimated at INR2.14 lakh crore and
liquidation value of INR1.37 lakh crore against the total claims of
the creditors' worth INR7.91 lakh crore," it said, ET relays.
ET relates that the creditors have realised 177.55 per cent of the
liquidation value and 84 per cent of the fair value (based on 456
cases where fair value has been estimated), the newsletter said.
"The haircut for creditors relative to the fair value of assets was
less than 16 per cent, while relative to their admitted claims is
of around 69 per cent," it added.
The report also added that till September 2022, 740 CIRPs have been
withdrawn under the provisions of section 12A of the Insolvency and
Bankruptcy Code.
Moreover, the report also highlighted that 64 per cent of the
ongoing CIRP has taken more than 270 days, beyond the permissible
time frame under the IBC, ET adds.
Delay in CIPR, which is a time-bound process, has become an issue.
The Insolvency and Bankruptcy Code (IBC) mandates a CIRP to be
completed within a time frame of 180 days from the date of
admission of the application.
Under the request of the resolution professional of the company,
NCLT has the power to extend the duration for another 90 days.
However, it also mandates CIRP has to be completed with a time
frame for resolution is 330 days, inclusive of time taken for
litigation, ET states.
ET relates that the delay is on account of litigations, shortage of
manpower at the National Company Law Tribunal (NCLT) benches,
infrastructure woes and the pandemic-induced disruptions that have
adversely impacted the envisaged time-bound resolution process.
Earlier, this month the government appointed a total of 15 judicial
and technical members to the National Company Law Tribunal (NCLT),
which is grappling with a shortage of judges.
The NCLT has a total of 28 benches, with a sanctioned strength of
63 members. This includes 31 each from the judicial and
administrative sides along with its president, who heads the
principal bench in New Delhi, ET discloses.
=================
I N D O N E S I A
=================
KAWASAN INDUSTRI: Fitch Lowers LongTerm Issuer Default Rating to C
------------------------------------------------------------------
This is a correction of a press release published on November 8,
2022. It corrects the nature of the notes that are due in 2027 to
senior unsecured notes in the first paragraph and clarifies the
guarantee on the 2023 notes in the second paragraph.
Fitch Ratings has downgraded Indonesia-based homebuilder PT Kawasan
Industri Jababeka Tbk's (KIJA) Issuer Default Rating (IDR) to 'C',
from 'CC', following the company's 8 November announcement offering
to exchange most of its senior unsecured notes due October 2023 for
new senior unsecured notes due 2027. At the same time, Fitch has
downgraded the senior unsecured USD300 million notes due 5 October
2023 to 'C' from 'CC', with a Recovery Rating of 'RR4'.
The 2023 notes are issued by wholly owned subsidiary, Jababeka
International B.V., and guaranteed by KIJA and certain
subsidiaries. Fitch Ratings Indonesia has also downgraded KIJA's
National Long-Term Rating to 'C(idn)' from 'CC(idn)'.
The downgrade reflects Fitch's view that the proposed exchange
constitutes a distressed debt exchange (DDE), because it results in
a material reduction in terms to investors, and Fitch believes the
transaction is conducted to avoid a default on the October 2023
notes. Short of completing the exchange offer, KIJA would be left
with extremely limited options to repay the notes, due to weak
investor sentiment for emerging-market high-yield debt.
If the DDE is completed, Fitch will downgrade KIJA's IDR to
'Restricted Default' (RD), and re-assess the ratings in line with
the post-exchange capital structure. If the exchange is
unsuccessful, KIJA's ratings will be reassessed to reflect the
heightened near-term liquidity risks.
'C' National Ratings denote a default or default-like process has
begun, or the issuer is in standstill, or for a closed funding
vehicle, payment capacity is irrevocably impaired.
KEY RATING DRIVERS
Exchange Offer Constitutes a DDE: The transaction contemplates
exchanging the face value of at least 90% of KIJA's outstanding
bonds due October 2023 into 30% of cash and 70% of longer-dated
unsecured notes maturing in 2027, with a coupon step-up ranging
from 7%-9% in annual increments of 50bp, compared with a fixed
cash-coupon for the current notes. Fitch believes these amendments,
which have been combined with a consent solicitation to remove
restrictive covenants on any remaining notes, constitute a material
reduction in terms.
Exchange to Avoid Default: Fitch believes KIJA's ability to raise
new financing has weakened significantly amid souring investor
sentiment for emerging-market debt, as global growth prospects slow
due to persistently high inflation and rising interest rates.
The refinancing plans had previously included raising USD100
million from domestic banks, and the balance via a fresh issue in
cross-border bond markets. KIJA has secured a USD100 million bank
loan from PT Bank Mandiri (Persero) Tbk (BBB-/AA+(idn)/Stable),
which it proposes to use to prepay an equivalent value of the old
note issuance. However, the prospects of raising the balance via
bond issuance have diminished - given weak market access - with
secondary market trading implying unserviceable interest payments
on any new issuance.
Presales to Moderate: Fitch forecasts presales, excluding KIJA's
joint venture - PT Kawasan Industri Kendal - to fall by 5% in 2023
to around IDR1 trillion, on softer economic growth amid rising
inflation and interest rates. Presales should improve to IDR1.1
trillion in 2022, from IDR994 billion in 2021, on the reopening of
international borders following the Covid-19 pandemic. This is
facilitating a normalisation of foreign visitors and building
momentum for foreign direct investment.
Fitch expects industrial land sales to account for the majority of
presales in the next two years, with affordable homes and
commercial land plots making up the balance.
ESG - Governance: The company has not fully addressed market
concerns on debt maturities amid limited access to capital, which
has a negative impact on the credit profile, and is relevant to the
ratings in conjunction with other factors
DERIVATION SUMMARY
KIJA's Long-Term IDR of 'C', the 'C' rating on its unsecured notes
and the National Long-term Rating of 'C(idn)' reflect the company's
announced exchange offer on its outstanding unsecured notes, which
Fitch believes constitutes a DDE.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
- Presales, excluding the Kendal joint venture, to fall to around
IDR1.0 trillion in 2023 (2022 forecast: IDR1.1 trillion)
- Non-development EBITDA of around IDR400 billion in 2022 and
IDR380 billion in 2023
- Land banking and capex, excluding Kendal, of around IDR295
billion in 2022 and IDR200 billion in 2023
- Fitch does not assume any dividends in 2022 and 2023, considering
Kendal's ongoing development plans.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- Fitch will reassess KIJA's capital structure and cash flow after
the completion of the exchange offer, or if the exchange is not
completed, to determine its IDR, senior unsecured ratings and
National Long-Term Rating.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Fitch will downgrade KIJA's Long-Term IDR to 'RD' (Restricted
Default) and National Long-Term Rating to 'RD(idn)' if the exchange
offer is completed, and thereafter re-assess the company's IDR
based on its post-exchange capital structure.
LIQUIDITY AND DEBT STRUCTURE
Bank Funding Insufficient: KIJA had around IDR1.2 trillion (USD81
million) of cash as of 30 July 2022, compared with around IDR4.5
trillion (USD303 million) debt due in the next 12 months,
comprising mostly of its USD300 million unsecured notes due 5
October 2023. KIJA has insufficient liquidity to repay the notes,
with only USD100 million committed from a domestic bank in October
2022 and its neutral free cash flow. The company's access to
capital markets has weakened significantly in the current
environment, such that Fitch believes the proposed exchange offer
is key to repaying its cross-border debt.
ISSUER PROFILE
KIJA is an Indonesia-based industrial township developer. The
company generates presales from its two flagship projects, Kota
Jababeka in Cikarang, West Java, and Kawasan Industri Kendal, in
Central Java. It had over 1,700 hectares of landbank across its two
estates at end-December 2021, which was sufficient for more than 20
years of development.
ESG CONSIDERATIONS
PT Kawasan Industri Jababeka Tbk has an ESG Relevance Score of '4'
for Management Strategy as it has not fully addressed market
concerns on debt maturities amid limited access to capital , which
has a negative impact on the credit profile, and is relevant to the
rating[s] in conjunction with other factors.
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
Entity/Debt Rating Recovery
----------- ------ --------
PT Kawasan Industri
Jababeka Tbk LT IDR C Downgrade
Natl LT C(idn) Downgrade
senior unsecured LT C Downgrade RR4
Jababeka International
B.V.
senior unsecured LT C Downgrade RR4
PT REASURANSI: Fitch Lowers Insurer Fin. Strength Rating to 'CC'
----------------------------------------------------------------
Fitch Ratings has downgraded PT Reasuransi Nasional Indonesia's
(Nasional Re) Insurer Financial Strength (IFS) Rating to 'CC'
(Extremely Weak) from 'BB-' (Moderately Weak). At the same time,
Fitch Ratings Indonesia has downgraded the National IFS Rating to
'CC(idn)' from 'A(Idn)'. Both ratings have been placed on Rating
Watch Negative (RWN).
'CC' National IFS Ratings denote two possible outcomes. If
policyholder obligations are still being met on a timely basis, the
rating implies ceased or interrupted payments appear probable.
Alternatively, a 'CC' National IFS Rating is assigned to
obligations that have experienced ceased or interrupted payments,
but with the potential for average to below-average recoveries.
KEY RATING DRIVERS
Negative Equity; Weak Governance: The multiple-notch downgrade
reflects the company's negative equity position of IDR112 billion
at end-September 2022, based on unaudited financials published in
October 2022. The insurer's end-2021 shareholder's equity was also
revised down to IDR7 billion, based on the audited financials
finalised in September 2022, from the unaudited IDR899 billion.
The downgrade also reflects the company's 'Least Favourable'
corporate governance, evident from the frequent inconsistencies
between audited and unaudited financial statements as well as a
weak governance structure. Fitch believes the weak financial
position has increased the risk of ceased or interrupted payments
occurring. The RWN is driven by elevated near-term downside risk to
the reinsurer's credit profile, including pressure on
capitalisation and financial performance, and increased risk to its
company profile.
Weak Corporate Governance: Its 'Least Favourable' assessment of
Nasional Re's corporate governance is a comparison with that of
other Indonesian insurers. Its financial disclosure has fallen
notably below that of peers with delays in publishing accounts and
the significant inconsistencies between its published audited and
unaudited reports recently. Fitch also think the governance
structure is inadequate as it has only two directors currently, the
president and finance directors. The operations director resigned
on 9 June 2022 and the technical director completed his tenure on 2
October 2022.
Significant Strengthening in Reserves: The revisions to the
financial statements stem from large reserve top-ups relating to
the company's credit insurance business, which accounted for 28% of
gross premiums at end-2021. The company has strengthened reserves
for two consecutive years due to a change in the reserving method
in 2020 as well as continued growth in the credit insurance
business. These followed recommendations by the company's new
auditor, Kantor Akuntan Publik Tanudiredja, Wibisana, Rintis dan
Rekan (PwC), which was appointed in 2020.
Weak Capitalisation: The higher reserves led to a revision in
Nasional Re's end-2021 regulatory risk-based capital (RBC) ratio to
11%, based on the audited report, from the unaudited 121%. The RBC
ratio dropped further to -39% by end-September 2022. These figures
are a breach of the regulator's minimum RBC requirement of 120%.
Fitch also estimates that Nasional Re's Fitch Prism Model Score
fell below 'Weak', based on the end-September 2022 financials, from
'Weak' at end-2021.
Parent Support Unlikely: Fitch does not expect any capital support
from Nasional Re's immediate parent, PT Asuransi Kredit Indonesia,
or ultimate parent, PT Bahana Pembinaan Usaha Indonesia (Indonesia
Financial Group), which is the state-owned insurance and guarantor
holding company. Nasional Re obtained subordinated loans amounting
to a total of IDR1,020 billion in June and September 2021 to
support its capital.
However, Fitch thinks that further capital infusions are unlikely
in the near term. Fitch has not incorporated any state support in
arriving at Nasional Re's rating, despite the company being
Indonesia's largest domestic reinsurer with a gross premium market
share of 29%.
Weak Underwriting Performance: Nasional Re's non-life 'combined
ratio' increased to 126% in 2021 on a higher claim ratio from the
credit insurance business. The company's net loss widened to IDR740
billion in 2021 from IDR543 billion in 2020. Fitch expects further
volatility from the credit insurance business as a result of the
lingering economic uncertainties. The company aims to improve its
underwriting by limiting its exposure to credit insurance retention
through curtailing the claim ratio from each ceding company.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Fitch's belief that ceased or interrupted payments on Nasional
Re's obligations are imminent.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- Capital injection, leading to a significant improvement in
Nasional Re's capital position.
ESG CONSIDERATIONS
Nasional Re has an ESG Relevance Score of '4' for Exposure to
Environmental Impact because most of the company's premium income
derives from the domestic market, which has a negative impact on
the credit profile and is relevant to the international IFS Rating
in conjunction with other factors. Indonesia is geographically
widespread and faces multiple hazards, including flooding,
earthquakes, landslides, tsunamis and volcanoes.
Nasional Re has an ESG Relevance Score of '4' for Financial
Transparency due to shortfalls in the quality and timing of
financial reporting, which has a negative impact on the credit
profile and is relevant to the international IFS Rating in
conjunction with other factors.
Nasional Re has an ESG Relevance Score of '4' for Governance
Structure due to limitations in board independence and
effectiveness, which has a negative impact on the credit profile
and is relevant to the international IFS Rating in conjunction with
other factors.
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
Entity/Debt Rating Prior
----------- ------ -----
PT Reasuransi
Nasional Indonesia Ins Fin Str CC Downgrade BB-
Natl Ins Fin Str CC(idn) Downgrade A(idn)
=====================
N E W Z E A L A N D
=====================
EVI-DENT DENTURE: Creditors' Proofs of Debt Due on Dec. 19
----------------------------------------------------------
Creditors of Evi-Dent Denture Clinic 2008 Limited are required to
file their proofs of debt by Dec. 19, 2022, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Nov. 11, 2022.
The company's liquidator is Kelera Nayacakalou.
NZ TINY HOMES: Creditors' Proofs of Debt Due on Jan. 17
-------------------------------------------------------
Creditors of New Zealand Tiny Homes Limited and Tiny Town Projects
Limited are required to file their proofs of debt by Jan. 17, 2023,
to be included in the company's dividend distribution.
The company commenced wind-up proceedings on Nov. 15, 2022.
The company's liquidators are:
Tony Leonard Maginness
Jared Waiata Booth
Baker Tilly Staples Rodway Auckland Limited
PO Box 3899
Auckland 1140
PENINSULA ROOF: Court to Hear Wind-Up Petition on Dec. 5
--------------------------------------------------------
A petition to wind up the operations of Peninsula Roof Painters
Plus Limited will be heard before the High Court at Tauranga on
Dec. 5, 2022, at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Oct. 19, 2022.
The Petitioner's solicitor is:
T. Saunders
Inland Revenue, Legal Services
21 Home Straight
PO Box 432
Hamilton
PRITCHARD TRUSTEES: Greg Sherriff Appointed as Receiver
-------------------------------------------------------
Greg Sherriff of Sherriff Consulting Limited on Nov. 15, 2022, was
appointed as administrator of Pritchard Trustees Limited.
The receiver may be reached at:
Sherriff Consulting Limited
Building D, 42 Tawa Drive
Albany, Auckland
Email: greg@sherriffconsulting.co.nz
WORKFORCE RECRUITMENT: Court to Hear Wind-Up Petition on Dec. 13
----------------------------------------------------------------
A petition to wind up the operations of Workforce Recruitment
Limited will be heard before the High Court at Rotorua on Dec. 13,
2022, at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Sept. 30, 2022.
The Petitioner's solicitor is:
T. Saunders
Inland Revenue, Legal Services
21 Home Straight
PO Box 432
Hamilton
=================
S I N G A P O R E
=================
CELEBES LINES: Commences Wind-Up Proceedings
--------------------------------------------
Members of Celebes Lines Pte Ltd, Thong Yong 2000 Marine Pte Ltd,
Thong Yong International Pte Ltd, on Nov. 15, 2022, passed a
resolution to voluntarily wind up the companies' operations.
The companies' liquidators are:
Lim Loo Khoon
Terrence Chin Khee Loon
Deloitte & Touche LLP
6 Shenton Way
OUE Downtown 2, #33-00
Singapore 068809
CHARAKU PTE: Court to Hear Wind-Up Petition on Dec. 9
-----------------------------------------------------
A petition to wind up the operations of Charaku Pte Ltd will be
heard before the High Court of Singapore on Dec. 9, 2022, at 10:00
a.m.
XMI Group Pte Ltd filed the petition against the company on Nov.
15, 2022.
The Petitioner's solicitors are:
Eldan Law LLP
6 Raffles Quay #15-01
Singapore 048580
EQONEX LTD: Files for Voluntary Debt Restructuring in Singapore
---------------------------------------------------------------
Will Canny at CoinDesk reports that Eqonex Ltd (EQOS), a
Nasdaq-listed crypto financial services firm, filed a voluntary
application with the High Court in Singapore to place the company
into judicial management.
In a Nov. 21 filing with the U.S. Securities and Exchange
Commission, Eqonex said its Hong Kong-based entity, Diginex, has
been placed into creditors' voluntary liquidation and Eqonex
Capital in Singapore is also expected to enter voluntary
liquidation, CoinDesk relates.
The company signed a strategic partnership with Bifinity, a
payments technology firm owned by crypto exchange Binance, in March
as it began preparing to focus on custody, brokerage and asset
management, CoinDesk recalls. Bifinity agreed to provide a $36
million loan that could be converted into equity and Jonathan
Farnell, former head of U.K. operations at Binance, became CEO. Due
to technical breaches of the loan agreement, Bifinity withheld the
fifth tranche of the loan.
"In order to address these liquidity issues, the group has been in
negotiation with potential investors to obtain equity financing
through the issuance of new shares, and in negotiation with
Bifinity seeking, amongst other things, a waiver of breaches and an
amendment of terms under the loan agreement. Unfortunately, despite
the group's best efforts, these negotiations have not been
successful," the company said, CoinDesk relays.
Other units of the group, including Bletchley Park Asset Management
and Digivault, are not in insolvency proceedings, CoinDesk says.
Digivault, a custodian registered with the U.K.'s Financial Conduct
Authority, will start a voluntary wind-down and will try to find an
alternative solution. Eqonex closed its crypto exchange in August,
citing extreme market volatility and declining trading volumes,
saying it planned to focus on its asset management and custody.
Judicial management is a type of restructuring in which an
independent overseer is appointed to handle a company that cannot
meet its debt obligations, CoinDesk notes.
The company's shares fell almost 24% on Nov. 21, as contagion fears
engulfed the crypto market. They have tumbled 91% this year. When
Eqonex listed in October 2020 it was the first Nasdaq company with
a cryptocurrency exchange.
Ensuring the company was properly regulated at a time that
"grow-at-all cost" development characterized the crypto space may
have hurt its ability to grow as fast as it wanted, the company
said in a letter to shareholders posted on its website, according
to CoinDesk.
"We must now acknowledge that we have not delivered on the
ambitious goals we set for ourselves as one of the first listed,
regulated digital asset ecosystems," it said.
Eqonex Ltd mainly engaged in the provision of digital asset
management and digital financial services.
OFFSHORE HOLDING: Court Enters Wind-Up Order
--------------------------------------------
The High Court of Singapore entered an order on Nov. 18, 2022, to
wind up the operations of Offshore Holding Company Pte. Ltd.
Adip Mittal filed the petition against the company.
The company's liquidators are:
Cameron Lindsay Duncan
David Kim
c/o KordaMentha Pte Ltd
16 Collyer Quay
#30-01 Singapore 049318
SALE STOCK: Court Enters Wind-Up Order
--------------------------------------
The High Court of Singapore entered an order on Nov. 11, 2022, to
wind up the operations of Sale Stock Pte. Ltd.
OSV Harta Holdings and Sumba II Limited filed the petition against
the company.
The company's liquidators are:
Joshua James Taylor
Chew Ee Ling
Alvarez & Marsal (SE Asia)
6 Battery Road, #16-01/ 02
Singapore 049909
TECHNOFORM KUNSTSTOFFPROFILE: Proofs of Debt Due on Dec. 23
-----------------------------------------------------------
Creditors of Technoform Kunststoffprofile Asia Pacific Pte. Ltd.
are required to file their proofs of debt by Dec. 23, 2022, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on Nov. 17, 2022.
The company's liquidator is:
Liu Weikang
c/o 80 Robinson Road #02-00
Singapore 068898
=====================
S O U T H K O R E A
=====================
GERMAN PROPERTY: Korean Firms Urged to Repay Investors
------------------------------------------------------
Bloomberg News reports that Korean consumers were misled by some of
the nation's biggest financial firms and should get back the money
they lost when a German property fund collapsed, South Korea's
financial watchdog recommended Nov. 22.
Bloomberg relates that the six firms -- Shinhan Securities Co., NH
Investment & Securities Co., Hana Bank, Woori Bank, Hyundai Motor
Securities Co. and SK Securities Co. -- should repay the KRW430
billion (US$317 million) clients lost, a panel at Financial
Supervisory Service said. While the panel's decision is just a
recommendation, brokerages have accepted proposals from the panel
in the past, according to the watchdog.
The German Property Group, formerly known as Dolphin Trust, at the
center of the scandal filed for bankruptcy in 2020, wiping out
about $1 billion of investor cash, Bloomberg recalls. While
investors from the UK, Singapore and Ireland also lost money, South
Korea is unique because the people affected mostly bought through
regulated finance firms, giving them the chance to recoup some of
their losses.
According to Bloomberg, the Financial Supervisory Service said it
received 190 complaints against six firms that sold the fund and
derivatives products in South Korea. The products were pitched to
retail investors, many of them retirees, as real estate projects
that would transform historic sites and castles in Germany into
apartments.
"The six firms admitted that they misled investors as they
explained the project could proceed as planned given German
developer's outstanding business records, credit and financial
status," the panel said. The products' proposals by an overseas
asset management firm were "mostly false or exaggerated."
No one would have invested in the products had they known it would
be "impossible to get their investment back," it added, Bloomberg
relays.
Shinhan, Woori, Hyundai Motor Securities, SK Securities and NH
Investment & Securities said they are reviewing the panel's
decision.
Woori added it decided to pay 50% of the principal to the buyers in
October last year, Bloomberg relays.
=============
V I E T N A M
=============
ANZ VIETNAM: Fitch Affirms 'BB' Foreign Currency IDR, Outlook Pos.
------------------------------------------------------------------
Fitch Ratings has affirmed ANZ Bank (Vietnam) Limited's (ANZV)
Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB' and
Long-Term Local-Currency IDR at 'BBB-'. The Outlook is Positive.
KEY RATING DRIVERS
Shareholder Support Drives Ratings: ANZV's Long-Term
Foreign-Currency IDR is driven by the Shareholder Support Rating
(SSR) of 'bb', which takes into account the parent's - Australia
and New Zealand Banking Group Limited (ANZ, A+/Stable/a+) - strong
credit profile and capacity to support ANZV. This is
counterbalanced by transfer and convertibility risks in Vietnam
(BB/Positive), as reflected in the 'BB' Country Ceiling.
The Positive Outlook mirrors that of the sovereign, reflecting a
potentially higher Country Ceiling should the sovereign rating be
upgraded. Fitch has not assigned a Viability Rating to ANZV, given
the high operational linkages with its parent that render a
standalone assessment as not meaningful.
Lower Local-Currency Repayment Risk: The Long-Term Local-Currency
IDR is rated two notches above Vietnam's sovereign rating, as Fitch
believes the risks of sovereign restrictions on local-currency
repayments are lower than for foreign-currency repayments, and that
the parent's propensity to support the bank is likely to remain
strong under a sovereign stress scenario. The Short-Term IDRs are
derived from the Long-Term IDRs, in line with criteria.
High Integration with Parent: All of ANZV's directors are appointed
by ANZ and its underwriting standards are closely guided by the
group's risk frameworks. Fitch believes that the bank's competitive
advantage is buttressed by its linkages with its parent, through
client referrals, funding support and technical expertise. ANZV's
asset and profit contribution to ANZ is modest, but this may
increase as its role in ANZ's overseas strategy continues to grow.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
A downgrade in the sovereign rating is likely to lead to a similar
revision in the bank's SSR and IDRs, given the Country Ceiling
constraints.
Fitch may also downgrade the bank's ratings if Fitch sees changes
in ANZ's ability or propensity to extend extraordinary support in a
timely manner. This could occur if there is a significant reduction
in ANZ's stake in the bank, or if there was a multiple-notch
downgrade of ANZ's ratings, which Fitch considers as remote in the
near term.
A downgrade in the Long-Term Local-Currency IDR may result in a
similar downward revision of its Short-Term Local-Currency IDR.
Meanwhile, it would require at least four notches of downgrade in
the Long -Term Foreign-Currency IDR to result in a downgrade of the
Short-Term Foreign-Currency IDR - a scenario that is unlikely to
occur in the near term.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
An upgrade in Vietnam's sovereign rating and Country Ceiling is
likely to lead to a similar revision in the bank's SSR and
Long-Term IDRs, provided the parent's ability and propensity to
support the bank remain unchanged.
An upgrade of the Long-Term Local-Currency IDR may result in a
similar upward revision of its Short-Term Local-Currency IDR.
Meanwhile, it would require at least two notches of upgrade in the
Long-Term Foreign-Currency IDR to result in an upgrade in its
Short-Term Foreign-Currency IDR.
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
ANZV's ratings are linked to Vietnam's Country Ceiling and ANZ's
ratings.
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
----------- ------ -----
ANZ Bank (Vietnam)
Limited LT IDR BB Affirmed BB
ST IDR B Affirmed B
LC LT IDR BBB- Affirmed BBB-
LC ST IDR F3 Affirmed F3
Shareholder Support bb Affirmed bb
ASIA COMMERCIAL: Fitch Affirms BB- LongTerm IDR, Outlook Stable
---------------------------------------------------------------
Fitch Ratings has upgraded Asia Commercial Joint Stock Bank's (ACB)
Government Support Rating (GSR) to 'b+', from 'b', and has affirmed
its Long-Term Issuer Default Rating (IDR) at 'BB-' and Viability
Rating at 'bb-'. The Outlook is Stable.
KEY RATING DRIVERS
Greater Probability of State Support: Fitch has upgraded the GSR,
as Fitch believes regulatory actions in recent years and policy
responses to recent events have bolstered the state's propensity to
provide extraordinary support to the banking system. The two-notch
gap between the GSR and the sovereign rating reflects Vietnam's
large banking-system size and ACB's more moderate systemic
importance relative to larger state-owned peers. The GSR does not
drive the bank's Long-Term IDR, as it is lower than its Viability
Rating
Standalone Credit Strength Drives Ratings: The Long-Term IDR is
driven by ACB's standalone credit profile, as reflected in its
Viability Rating. The Viability Rating is underpinned by ACB's risk
profile, which supports asset quality that is better than that of
the industry. It also takes into account the bank's improving
profitability and capitalisation, balanced against moderate pricing
power given ACB's status as a mid-sized domestic bank, with market
share of about 3% in system assets and loans. ACB also faces risks
associated with rapid loan growth - a trait shared by many
Vietnamese banks.
Supportive Economic Environment: Vietnam's economy expanded by a
robust 8.8% in 9M22 amid a broad-based recovery and brisk export
growth. Fitch expects economic growth to trend at above 6.0% over
2023 and 2024, although external uncertainties and tighter funding
conditions pose some downside risks. The favourable domestic
environment should continue to buoy banks' earnings prospects and
support asset quality in the near term. Against this backdrop,
Fitch has revised the banking operating environment score to
'bb-'/positive, from 'bb-'/stable.
Retail Centric Medium-Sized Bank: ACB's business model is focused
on the retail segment, which comprises more than 60% of loan and
deposits. Its core target customers are higher-income borrowers in
southern Vietnam, which Fitch expects the bank to continue to
harness as it expands its franchise.
Asset Quality Better than Industry: ACB's asset-quality metrics
have outperformed the industry average over the years, reflecting
the bank's superior underwriting standards and risk controls. Fitch
expects asset quality to remain broadly steady over the next 12
months, despite the expiry of Covid-19 pandemic-related regulatory
forbearance on loan classification, as economic momentum is likely
to remain robust. This leads up to affirm ACB's asset quality score
at 'bb-' with a stable outlook.
Above Peer Profitability: Fitch has upgraded the earnings and
profitability score to 'bb'/stable, from 'bb-'/stable, given ACB's
higher risk-adjusted returns, which Fitch expects to be sustained
over the next 12 months. Fitch expects ACB's core profitability
metric to remain among the highest of rated local peers in the near
to medium term, helped by its higher margin but lower-risk retail
lending that will keep credit costs low, as well as strong
bancassurance growth.
Improved Capital Buffers: Fitch has upgraded the capitalisation and
leverage score to 'bb-'/stable, from 'b+'/stable, as Fitch believes
ACB's Fitch Core Capital ratio is likely to be sustained at above
12% in the near to medium term. This takes into account the bank's
strong internal capital generation, which is likely to outpace loan
growth in the near term.
Largely Deposit Funded: ACB's loan/deposit ratio of 102% as at
September 2022 reflect an acceptable liquidity profile, although
this has risen steadily over the last 18 months due to higher loan
growth. While the share of interbank funding has risen in recent
months, Fitch expects ACB to remain primarily deposit funded as it
prioritises growing its low-cost current and savings account
deposits. Fitch has affirmed its funding and liquidity profile at
'bb-'/stable.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
Fitch may downgrades the Viability Rating and Long-Term IDR should
a combination of the following occur:
- The non-performing and problem loan ratios, which include special
mention loans and Vietnam Asset Management Company bonds, rise
significantly above 1% and 2%, respectively, for a sustained
period.
- Excessive credit growth into higher-risk sectors, such as
unsecured personal loans, without a commensurate improvement in
loan absorption buffers.
- Operating profit/risk-weighted assets declining below 2% for a
prolonged period (2021: 3.0%).
The GSR could be downgraded upon a downgrade of the sovereign
rating (BB/Positive), which Fitch believes is unlikely to happen in
the near term given the Positive Outlook.
The Short-Term IDR is unlikely to be downgraded unless the
Long-Term IDR is downgraded by four or more notches.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
The Viability Rating is at the same level as the operating
environment score, which typically constrains its assessment of the
business profile and other financial profile scores. An upgrade of
the operating environment score, in conjunction with a more
positive assessment of ACB's qualitative and financial key rating
drivers, could lead to a Viability Rating upgrade.
A sovereign rating upgrade is also likely to lead to similar upward
revision of ACB's GSR, assuming the state's propensity to support
the bank remains broadly unchanged.
The Short-Term IDR is unlikely to be upgraded unless the Long-Term
IDR is upgraded by three or more notches.
VR ADJUSTMENTS
The operating environment score has been assigned above the implied
score due to the following adjustment: economic performance
(positive)
The business profile score has been assigned below the implied
score due to the following adjustment: market position (negative).
The asset quality has been assigned below the implied score due to
the following reason: underwriting standards and growth
(negative).
ESG CONSIDERATIONS
Fitch has revised ACB's ESG Relevance Score for Governance
Structure to the sector default of '3', from '4', as Fitch believes
some of the weaknesses in corporate governance, such as low
independent director representation, have not materially impacted
the bank's business performance and have only a minimal impact on
the bank's rating.
Fitch has revised ACB's ESG Relevance Score for Financial
Transparency to the sector default score of '3', from '4', as Fitch
believes loan classification and disclosure standards in Vietnam
continue to lag international practices, but have improved in
recent years and no longer weigh on the bank's credit rating.
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 minimal credit impact on the entities,
either due to their nature or to the way in which they are being
managed by the entities.
Entity/Debt Rating Prior
----------- ------ -----
Asia Commercial
Joint Stock Bank LT IDR BB- Affirmed BB-
ST IDR B Affirmed B
Viability bb- Affirmed bb-
Government Support b+ Upgrade b
MILITARY BANK: Fitch Hikes LongTerm IDR to 'BB-', Outlook Pos.
--------------------------------------------------------------
Fitch Ratings has upgraded the Long-Term Issuer Default Rating
(IDR) of Military Commercial Joint Stock Bank (MB) to 'BB-' from
'B+', in line with the upward revision of the Government Support
Rating (GSR) to 'bb-' from 'b'. The Outlook on the IDR is Positive,
mirroring the Outlook on Vietnam's sovereign rating (BB). At the
same, Fitch has affirmed MB's Viability Rating (VR) at 'b+'.
KEY RATING DRIVERS
Sovereign Support Underpins Ratings: The upgrade of MB's Long-Term
IDR is driven by the upward revision of its GSR, which takes into
consideration its view that the government's propensity to support
the banking system is strong. It also factors in the bank's
shareholding structure and linkages with state-linked companies
that would render any extraordinary support more likely than other
mid-sized banks in Vietnam.
The VR takes into consideration MB's moderate, albeit expanding
franchise, as well as Vietnam's resilient economic growth, which
should continue to support the bank's asset quality and
profitability over the next 12-18 months. This is balanced by risks
associated with the bank's penchant for high credit growth - a
trait shared by many Vietnamese banks.
Supportive Economic Environment: Vietnam's economy grew by 8.8% in
9M22 amid a broad-based recovery and brisk export growth. Fitch
expects economic growth above 6% over 2023 and 2024, although
external uncertainties and tighter funding conditions pose some
downside risks. The favourable domestic environment should continue
to buoy banks' earnings prospects and support asset quality in the
near term. Against this backdrop, Fitch has revised the outlook on
the banking system operating environment score of 'bb-' to positive
from stable.
Moderate Franchise Expanding: MB's market shares in deposits and
assets have been expanding gradually over the past five years, due
to rapid balance-sheet growth. The bank remains significantly
smaller than the state-owned banks, but MB has a relatively strong
funding franchise. The franchise has been helped by improving
digitalisation efforts and indirect state-linkages, in Fitch's
view.
Asset-Quality Risks Manageable: Fitch expects asset-quality risks
to remain broadly contained in the near term, helped by the steady
operating environment and the bank's high loan-loss coverage. This
is despite MB's appetite for growth. Fitch believes that rapid
growth in the higher-risk retail sector may lead to higher
non-performing loan formation in the medium term, but credit risks
should be mitigated by its underwriting standards
Leading Risk-Adjusted Returns: Fitch revised the bank's earnings
and profitability score to 'bb' from 'bb-' to reflect its higher
risk-adjusted returns, which Fitch expects to be sustained in the
near to medium term. MB has one of the highest levels of
profitability among Fitch-rated Vietnamese banks, supported by its
improving cost efficiency and higher-margin lending business.
Capitalisation Likely to Improve: MB's core capital ratio remains
low by global standards and relative to risks in the operating
environment. Still, Fitch expects the ratio to continue to improve
on strong internal capital generation and the potential stake sale
in its Cambodian subsidiary. Against this backdrop, Fitch has
revised the outlook on the bank's capitalisation and leverage score
of 'b+' to positive from stable.
Steady Funding Profile: MB is largely funded by customer deposits
(83% of funding), with low-cost current and savings accounts (CASA)
comprising around 35% of deposits - the highest among Fitch-rated
local banks. We expect its loan/deposit ratio of 94% at
end-September 2022 to rise next year on a strong loan pipeline.
Even so, the funding and liquidity position should remain broadly
intact over the next 12 months as MB continues efforts to attract
CASA via its increasing digital banking capabilities.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
Any negative action on the sovereign rating will be directly
reflected in the bank's Long-Term IDR. The IDR and GSR could be
downgraded if Fitch sees material deterioration in the sovereign's
propensity to support the bank. The latter could be triggered by a
downgrade in the sovereign rating.
The bank's VR may be under pressure if Fitch sees significant
deterioration in its financial metrics, such as its operating
profit/risk-weighted assets ratio falling below 2% for a prolonged
period, and if there is evidence of stress in its liquidity
profile. Fitch thinks that the likelihood of these scenarios
occurring is low in the near term, given the resilient economic
environment.
Excessive growth in higher-risk sectors, such as in unsecured
personal loans, without commensurate improvements in its loss
absorption buffers or risk controls may also be negative for its
VR.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
The bank's Long-Term IDR and GSR will be upgraded if the sovereign
rating is upgraded, assuming the sovereign's propensity to support
the bank remains intact.
MB's VR may be upgraded if Fitch sees sustained improvement in its
business profile as well as its capitalisation, such that its Fitch
Core Capital ratio were to rise and stay above 12% over a sustained
period. Continued improvement in the operating environment may also
lead to positive action on the bank's VR.
VR ADJUSTMENTS
The operating environment score has been assigned above the implied
score for the following adjustment: economic performance
(positive)
The business profile score has been assigned below the implied
score for the following adjustment: market position (negative).
The asset quality has been assigned below the implied score for the
following reason: underwriting standards and growth (negative).
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
MB's ratings are linked to Vietnam's sovereign rating.
ESG CONSIDERATIONS
MB's ESG Relevance Score for Governance Structure has been revised
to a sector default of '3' from '4', as Fitch believes that some of
the weaknesses in corporate governance, such as its low independent
director representation, have not materially impacted its business
performance and have only minimal effect on the bank's rating.
Fitch has revised MB's ESG Relevance Score for Financial
Transparency to the sector default score of '3' from '4'. Fitch
believes loan classification and disclosure standards in Vietnam
continue to lag behind international practices, but they have
improved in recent years and no longer weigh on the bank's credit
rating even as Fitch factor these differences into consideration in
its rating assessment.
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 minimal credit impact on the entity,
either due to their nature or to the way in which they are being
managed by the entity.
Entity/Debt Rating Prior
----------- ------ -----
Military Commercial
Joint Stock Bank LT IDR BB- Upgrade B+
ST IDR B Affirmed B
Viability b+ Affirmed b+
Government Support bb- Upgrade b
STANDARD CHARTERED VIETNAM: Fitch Affirms BB Foreign Currency IDR
-----------------------------------------------------------------
Fitch Ratings has affirmed Standard Chartered Bank (Vietnam)
Limited's (SCBVL) Long-Term Foreign-Currency Issuer Default Rating
(IDR) at 'BB' and Long-Term Local-Currency IDR at 'BBB-'. The
Outlook is Positive.
KEY RATING DRIVERS
Country Ceiling Constrains Rating: The Long-Term Foreign-Currency
IDR is driven by SCBVL's Shareholder Support Rating (SSR) of 'bb'.
The SSR takes into account the strong ability and propensity of the
parent, Standard Chartered Bank (Singapore) Limited (SCBS,
A+/Stable/a), to support SCBVL, if required, given SCBVL's growing
importance to the group as well as high operational integration
with the parent. The SSR is, however, constrained by Vietnam's
(BB/Positive) Country Ceiling of 'BB', which reflects the transfer
and convertibility risks in Vietnam.
The Positive Outlook mirrors that on the Vietnam sovereign,
reflecting a potentially higher Country Ceiling should the
sovereign rating be upgraded. Fitch has not assigned a Viability
Rating to SCBVL given the high operational linkages with its parent
that render a standalone assessment not meaningful.
Strong Parental Ability to Provide Support: Fitch sees the risk of
sovereign restrictions on local-currency repayments as lower than
for foreign-currency repayments. Hence, Fitch rates SCBVL's
Long-Term Local-Currency IDR two notches above Vietnam's Country
Ceiling, reflecting the parent's robust ability and propensity to
support SCBVL. The Short-Term IDRs are derived from SCBVL's
Long-Term IDRs, in line with criteria.
Parent Linkages Support Local Franchise: Fitch believes SBVL's
local franchise strengths are supported by the strong linkages with
its parent, allowing the bank to target high net worth individuals,
multinational companies in Vietnam and large local corporates with
transnational banking needs, despite the unit's small balance-sheet
size. SCBVL's asset and revenue contribution relative to its parent
is modest, but has been steadily growing. Fitch expects this trend
to persist as the entity takes advantage of the country's strong
economic growth.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
A downgrade in the Vietnam sovereign rating and Country Ceiling is
likely to lead to a downgrade of the SSR and IDRs.
Fitch may also downgrades the ratings upon a significant reduction
in SCBS's ability and propensity to support its subsidiary.
However, Fitch sees this scenario as unlikely in the near term,
given SBVL's growing role in the group as well as the six-notch gap
between the parent's Viability Rating and Vietnam's Country
Ceiling.
A downgrade of the Long-Term Local-Currency IDR may result in a
downgrade of the Short-Term Local-Currency IDR. Meanwhile, it would
require at least a four-notch downgrade of the Long-Term
Foreign-Currency IDR to result in a downgrade of the Short-Term
Foreign-Currency IDR, a scenario that is unlikely to occur in the
near term.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
An upward revision in the sovereign rating and Country Ceiling is
likely to lead to a corresponding upgrade in the bank's SSR and
IDRs, assuming the parent's ability and propensity to support the
bank remain intact.
An upgrade of the Long-Term Local-Currency IDR may result in a
similar upward revision of the Short-Term Local-Currency IDR.
Meanwhile, it would require at least a two-notch upgrade of the
Long-Term Foreign-Currency IDR to result in an upgrade of the
Short-Term Foreign-Currency IDR.
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
SCBVL's ratings are linked to Vietnam's Country Ceiling and SCBS's
ratings.
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
----------- ------ -----
Standard Chartered
Bank (Vietnam)
Limited LT IDR BB Affirmed BB
ST IDR B Affirmed B
LC LT IDR BBB- Affirmed BBB-
LC ST IDR F3 Affirmed F3
Shareholder Support bb Affirmed bb
VIETCOMBANK: Fitch Hikes LongTerm IDR to 'BB', Outlook Positive
---------------------------------------------------------------
Fitch Ratings has upgraded Joint Stock Commercial Bank For Foreign
Trade of Vietnam's (Vietcombank) Long-Term Issuer Default Rating to
'BB' from 'BB-', on an upgrade of the Government Support Rating
(GSR) to 'bb' from 'bb-'. The Outlook on the IDR is Positive, in
line with Vietnam's sovereign rating of 'BB' with a Positive
Outlook. Fitch has also upgraded Vietcombank's Viability Rating
(VR) to 'bb-' from 'b+'.
KEY RATING DRIVERS
The State Bank of Vietnam has a strong influence on Vietnam's
banking sector. Its supervisory actions in recent years and policy
responses to recent events have bolstered its view that the
authorities have strong propensity to provide extraordinary support
to the banking system in general, and to majority-state owned and
systemically important banks like Vietcombank, in particular.
Fitch has therefore upgraded the GSR to 'bb', which is equalised to
the sovereign rating, and upgraded the IDR consequently. Fitch
upgraded the VR to reflect its assessment that the bank's risk
profile and asset quality performance have become more consistent
in recent years. The standalone credit profile also takes into
consideration Vietcombank's status as a leading state-owned bank,
its healthy profitability and adequate funding and liquidity, but
is offset by thin capitalisation.
Systemically Important State-Owned Bank: Vietcombank's high
systemic importance, with 9%-10% share of system deposits and
loans, and 75% state ownership underpin its assessment that the
state is likely to extend extraordinary support to the bank, if
necessary, as contagion risks across the banking system would
otherwise be high. The GSR is equalised to Vietnam's sovereign
rating, as Fitch believes the government's support for large
state-owned banks such as Vietcombank is likely to be strong, in
times of need.
Favourable Economic Environment: Vietnam's economy grew by a robust
8.8% in 9M22 amid a broad-based recovery and brisk export growth.
Fitch expects economic growth to trend at above 6% over 2023 and
2024, although external uncertainties and tighter funding
conditions pose some downside risks. This should continue to buoy
banks' earnings prospects and support asset quality in the near
term, which is why Fitch has revised the outlook on the operating
environment to positive from stable.
Easing Credit Risks: Fitch believes the bank's risk profile and
asset quality have improved through more consistent credit
underwriting in recent years. This is reflected in the reported
non-performing loan ratio being at a low, steady level
(end-September 2022: 0.8%) and high loan-loss coverage that
provides adequate protection against new slippages as Covid-19
restructured loans exit relief programmes. Fitch expects
Vietcombank's loan portfolio performance to remain steady in the
near term on the robust economy, and have revised the scores on
both risk profile and asset quality to 'bb-' from 'b+'.
Steady Earnings Growth: Brisk balance-sheet growth and a modestly
higher net interest margin have placed Vietcombank's risk-adjusted
profitability on a gradually improving trajectory. This trend
should hold for the next 12-18 months, in Fitch's view. Credit
costs are likely to remain manageable in line with loan portfolio
performance, and the bank will also be able to draw on its
significant loan loss reserves to defend earnings, if necessary.
Capitalisation Low but Improving: Reduced cash dividend payments
over the past two years have helped the bank to gradually build up
its capital ratio as profitability has been robust, but
capitalisation remains thin on rapid balance-sheet growth. A
planned private placement issue - as much as 6.5% additional shares
- will ease pressure on the bank's capitalisation and leverage
score. Even so, the amount of benefit is subject to unpredictable
market conditions and the timing remains unclear.
Funding and Liquidity Steady: Vietcombank's loan/deposit ratio rose
to 94% by end-September 2022 (end-2021: 85%) as deposit growth
lagged loan growth. The banking system as a whole had experienced
lower deposit growth in 9M22 as interest rates rose and liquidity
tightened. Still, Fitch believes Vietcombank continues to have an
edge in its funding structure due to its larger base of US dollar
deposits. Fitch also believes the bank, together with other large
state-own banks, is likely to be perceived by depositors as a haven
during times of market stress.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
IDR and GSR
The IDR and GSR are sensitive to Vietnam's sovereign rating and the
Outlook on the IDR is likely to mirror that on the sovereign
rating. Fitch may also takes negative rating action on the GSR and
the IDR if Fitch perceives the state's propensity to support
Vietcombank as diminishing materially, such as if the bank had much
lower systemic importance or ceased to be majority state-owned,
neither of which Fitch consider to be likely in the near term.
VR
Vietcombank's VR may come under pressure if the Fitch Core Capital
ratio declines below 7% on a sustained basis (end-September 2022:
8.2%). This could occur if balance-sheet growth was substantially
more rapid than Fitch expects without a commensurate increase in
capital accrual, or if cash dividends payments were significantly
increased.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
IDR and GSR
An upgrade of Vietnam's sovereign rating is likely to lead to a
corresponding upgrade of the GSR and IDR, provided that the state's
propensity to support Vietcombank is unchanged.
VR
The VR has been upgraded and is unlikely to be upgraded again in
the near term. In the medium term, an upgrade of the operating
environment score, in conjunction with a more positive assessment
of Vietcombank's qualitative as well as financial key rating
drivers, could lead to an upgrade of the VR. This is conditioned
upon the Fitch Core Capital ratio rising to at least 12% on a
sustained basis.
VR ADJUSTMENTS
The operating environment score has been assigned above the implied
score for the following adjustment reason: economic performance
(positive).
The asset quality score has been assigned below the implied score
for the following reason: underwriting standards and growth
(negative).
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
Vietcombank's ratings are linked to Vietnam's sovereign rating.
ESG CONSIDERATIONS
Vietcombank has an ESG Relevance Score of '4' for Governance
Structure, due to the significant influence of the state in the
bank's strategic objectives and a potential lack of effective
independent board oversight that could weaken the protection of
creditor and stakeholder rights. This has a negative impact on the
credit profile, and is relevant to the ratings in conjunction with
other factors. The bank's strong state linkages are also factored
into its assessment of the likelihood of state support, which
drives its GSR and Long-Term IDR.
Fitch has revised Vietcombank's ESG Relevance Score for Financial
Transparency to the sector default score of '3' from '4'. Fitch
believes loan classification and disclosure standards in Vietnam
continue to lag behind international practices, but they have
improved in recent years and no longer weigh on the bank's credit
rating even as Fitch factor these differences into consideration in
its rating assessment.
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
----------- ------ -----
Joint Stock Commercial
Bank For Foreign Trade
of Vietnam LT IDR BB Upgrade BB-
ST IDR B Affirmed B
Viability bb- Upgrade b+
Government Support bb Upgrade bb-
VIETINBANK: Fitch Hikes LongTerm IDR to 'BB', Outlook Positive
--------------------------------------------------------------
Fitch Ratings has upgraded Vietnam Joint Stock Commercial Bank for
Industry and Trade's (Vietinbank) Long-Term Issuer Default Rating
(IDR) to 'BB' from 'BB-' on an upgrade of its Government Support
Rating (GSR) to 'bb' from 'bb-'. The Outlook on the IDR is
Positive, in line with Vietnam's sovereign rating of 'BB' with a
Positive Outlook. The Viability Rating (VR) was affirmed at 'b'.
KEY RATING DRIVERS
State Support: The State Bank of Vietnam has a strong influence on
Vietnam's banking sector. Its supervisory actions in recent years
and policy responses to recent events have bolstered its view that
the authorities have strong propensity to provide extraordinary
support to the banking system in general, and to majority
state-owned and systemically important banks like Vietinbank, in
particular. This accounts for its upgrade of the GSR to 'bb', which
is equalised to the sovereign rating, and the consequent upgrade of
the IDR.
The affirmation of the VR reflects its belief that Vietinbank's
financial performance is likely to continue improving gradually
over the next 12-18 months, with steady loan growth and asset
quality, while profitability continues to rise due to its earlier
front-loading of credit provisions. Rating pressure on capital is
likely to ease due to better internal capital generation, but
increases are not material enough to revise its view, as Fitch
continues to apply capitalisation and leverage as a negative
adjustment to the VR.
Systemically Important State-Owned Bank: Vietinbank's 65% state
ownership and high systemic importance, with about 11% share of
system deposits and loans, underpin our assessment that the state
is likely to extend extraordinary support to the bank, if needed,
as contagion risks across the banking system would otherwise likely
be high. The GSR is equalised with Vietnam's sovereign rating as
Fitch believes the government's support stance for large
state-owned banks like Vietinbank is likely to be strong in times
of need.
Favourable Economic Environment: Vietnam's economy grew by a robust
8.8% in 9M22 amid a broad-based recovery and brisk export growth.
Fitch expects economic growth to be above 6% over 2023 and 2024,
although external uncertainties and tighter funding conditions pose
downside risks. The growth should continue to buoy banks' earnings
prospects and support asset quality in the near term, resulting in
its revision of the outlook on the operating environment to
positive from stable.
Weaker Asset Quality than Peers: Vietinbank's risk profile and
asset quality have historically lagged behind that of its local
rated peers, with only modest improvement in recent years. The
reported non-performing loan ratio inched up to 1.4% by September
2022 (end-2021: 1.3%) but special-mention loans have increased to
1.8% of loans (end-2021: 0.5%). Fitch expects a moderate uptick in
the problem loan ratio in the near term as restructured loans exit
relief, but impairment risks are likely to be manageable with
higher loan-loss coverage of 222% by end-September 2022 from 180%
at end-2021.
Improving Earnings Prospects: Vietinbank's profitability ratios
improved in 9M22, as continued loan growth (14.8% yoy in 3Q22),
higher bancassurance-related fees and better currency trading gains
boosted pre-provision operating profit. This enabled the bank to
beef up its loan-loss allowances more actively in anticipation of
potential credit impairments following the end of loan
forbearance.
Fitch believes these buffers will reduce the bank's credit costs
and buoy its profitability, as loan growth and net interest margins
remain steady on current trajectories over the next 12-18 months.
The outlook on earnings and profitability was revised to positive
from stable with an unchanged score of 'b+'.
Capitalisation a Constraint: Fitch expects Vietinbank's Fitch Core
Capital Ratio to improve to above 7% from 6.1% at end-3Q22 due to
higher profitability. Nonetheless, Fitch believes the bank's
capitalisation will remain weak over the next two years as Fitch
anticipates that brisk growth in risk-weighted assets will consume
most of the bank's internally generated capital. Capitalisation has
been a key rating weakness that prompted us to notch down the VR to
'b' from its implied assessment of 'b+'.
Steady Funding and Liquidity: Vietinbank's loan/deposit ratio rose
to 105% by end-September 2022 (end-2021: 97%) as deposit growth
lagged behind loan growth, which reflected the trend in the broader
banking system amid higher interest rates in recent months.
Prolonged liquidity tightness is detrimental to Vietinbank, which
has relied on the interbank money market for a larger share of its
non-equity funding than peers. Nevertheless, Fitch believes it is
likely to be perceived by depositors as a haven together with the
other large state-owned banks if system liquidity were to be in
distress.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
IDR and GSR
The IDR and GSR are sensitive to Vietnam's sovereign rating and the
Outlook on the IDR is likely to mirror that on the sovereign
rating. Fitch may also takes negative rating action on the GSR and
the IDR if Fitch perceives the state's propensity to support
Vietinbank as diminishing materially, such as if the bank were to
have much lower systemic importance or ceases to be majority
state-owned, neither of which Fitch considers likely in the near
term.
VR
A decline in Vietinbank's Fitch Core Capital ratio to 5% (end-3Q22:
6.1%) or its local capital ratios to close to the regulatory
minimum is likely to lead to a downgrade of the VR to 'b-',
especially if there were no meaningful improvements in other
financial profile scores. A material deterioration in its risk
profile, which could be reflected in excessively rapid growth or a
major shift to higher-risk borrowers, in tandem with significantly
worse asset-quality metrics, may also lead to a downgrade of the
VR.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
IDR and GSR
An upgrade of Vietnam's sovereign rating is likely to lead to a
corresponding upgrade of the GSR and IDR, provided the state's
propensity to support Vietinbank is unchanged.
VR
The VR is likely to be upgraded if the Fitch Core Capital ratio
rises above 8% on a sustained basis, as capitalisation is
constraining the VR. An upgrade of the operating environment score,
coupled with upward revisions in the bank's risk profile, asset
quality performance and profitability, may also lead to an upgrade
of the VR.
VR ADJUSTMENTS
The VR has been assigned below the implied VR due to the following
adjustment reason: weakest link - capitalisation and leverage
(negative).
The operating environment score has been assigned above the implied
score due to the following adjustment reason: economic performance
(positive).
The asset quality score has been assigned below the implied score
due to the following adjustment reason: underwriting standards and
growth (negative).
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
Vietinbank's ratings are linked to Vietnam's sovereign rating.
ESG CONSIDERATIONS
Vietinbank has an ESG Relevance Score of '4' for Governance
Structure due to the significant influence of the state in the
bank's strategic objectives and a potential lack of effective
independent board oversight that could weaken the protection of
creditor and stakeholder rights. This has a negative impact on the
credit profile, and is relevant to the ratings in conjunction with
other factors. The bank's strong state linkages are also factored
into our assessment of the likelihood of state support, which
drives its GSR and Long-Term IDR.
Fitch has revised Vietinbank's ESG Relevance Score for Financial
Transparency to the sector default score of '3' from '4'. Fitch
believes loan classification and disclosure standards in Vietnam
continue to lag behind international practices, but they have
improved in recent years and no longer weigh on the bank's credit
rating even as Fitch factor these differences into consideration in
its rating assessment.
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
----------- ------ -----
Vietnam Joint Stock
Commercial Bank for
Industry and Trade LT IDR BB Upgrade BB-
ST IDR B Affirmed B
Viability b Affirmed b
Government Support bb Upgrade bb-
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2022. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000.
*** End of Transmission ***