/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/221219.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 Monday, December 19, 2022, Vol. 25, No. 246 Headlines A U S T R A L I A BELLROCK UAV: First Creditors' Meeting Set for Dec. 21 BROSA DESIGN: Gets More Than 30 Potential Buyers CAFE ON: Second Creditors' Meeting Set for Dec. 21 CLOUGH GROUP: May Be Difficult to Recover AUD350MM Owed to Parent COSMOS ASSET: Second Creditors' Meeting Set for Dec. 20 DBL FUNDING 2021-1: Moody's Raises Rating on Class E Notes to Ba1 ORION TRUST 2022-1: S&P Assigns BB(sf) Rating on Class E Notes ROSEMARY TECHNOLOGIES: First Creditors' Meeting Set for Dec. 21 SRD QLD: First Creditors' Meeting Set for Dec. 13 VIG ASSET: ASIC Cancels AFS licence Following Receivership YOURGROCER: Shut Operations Due to Tough Economic Conditions C H I N A LANZHOU CONSTRUCTION: Moody's Affirms 'Caa1' CFR, Outlook Negative I N D I A A N WIRES: CRISIL Keeps B Debt Ratings in Not Cooperating A.S. EMPORIUM: CRISIL Keeps B+ Debt Rating in Not Cooperating AADHI CARS: CRISIL Keeps B Debt Ratings in Not Cooperating ABHIGNA RICE: CRISIL Keeps B Debt Ratings in Not Cooperating ADITYA AGRI: CRISIL Keeps B Debt Rating in Not Cooperating AL HIND: CRISIL Keeps B Debt Rating in Not Cooperating Category ALFANSO VITRIFIED: CRISIL Keeps B+ Ratings in Not Cooperating ALPINE EXPO: CRISIL Keeps B Debt Ratings in Not Cooperating ANUBHA INDUSTRIES: Ind-Ra Affirms BB LongTerm Issuer Rating ARYA TRADER: CRISIL Keeps B+ Debt Ratings in Not Cooperating AVIVET NUTRITIONAL: CRISIL Keeps B Debt Rating in Not Cooperating AWADE INDUSTRIES: CRISIL Keeps B+ Debt Ratings in Not Cooperating BABBOO RICE: CRISIL Keeps B Debt Ratings in Not Cooperating BLS INSTITUTE: CRISIL Lowers Rating on INR7.4cr Cash Loan to B BLUE AUTOWORLD: CRISIL Keeps B+ Ratings in Not Cooperating CHETAN ALLOYS: CRISIL Keeps B Debt Rating in Not Cooperating CREATIVE EDUCATIONAL: CRISIL Keeps B+ Rating in Not Cooperating DALKAN SHIPBREAKING: Ind-Ra Assigns BB Long Term Issuer Rating DILEEP TRADERS: CRISIL Keeps B+ Debt Rating in Not Cooperating DR. RAJENDRA: CRISIL Keeps B+ Debt Ratings in Not Cooperating DUTCH BLUE: CRISIL Keeps B+ Debt Ratings in Not Cooperating EASTERNZONE INDUSTRIES: CRISIL Keeps B Ratings in Not Cooperating EMS AND EXPORTS: CRISIL Keeps C Debt Rating in Not Cooperating FIVE VISION: CRISIL Keeps B+ Debt Ratings in Not Cooperating PARAS STEEL: Ind-Ra Assigns BB LT Issuer Rating, Outlook Stable SARRA MOTORS: CRISIL Keeps B+ Debt Ratings in Not Cooperating SITI NETWORKS: IDBI Files Insolvency Petition vs. Company UNIQ SECURITY: CRISIL Withdraws B+ Rating on INR4cr New Loan VIJAYKUMAR & CO: Ind-Ra Assigns BB Long Term Issuer Rating I N D O N E S I A KAWASAN INDUSTRI: S&P Raises ICR to 'CCC+' Following Debt Exchange J A P A N FTX TRADING: Seeks Approval to Sell Japan Unit TOSHIBA CORP: Aims to Reach Deal With Potential Partners Soon M O N G O L I A MONGOLIA: S&P Withdraws 'B' LT Rating on US$5BB Medium-Term Notes MONGOLIAN MINING: S&P Upgrades LT ICR to 'CCC', Outlook Negative N E W Z E A L A N D ARGO BEACH: Creditors' Proofs of Debt Due on Feb. 7 MW LESLIE: Creditors' Proofs of Debt Due on Jan. 15 NZ SMOKEFREE: Creditors' Proofs of Debt Due on Feb. 3 RESIMAC PRIME 2021-1: S&P Affirms BB(sf) Rating on Cl. E Notes WHITE INTERNATIONAL: Creditors' Proofs of Debt Due on Jan. 20 WHITELABELNZ LIMITED: First Creditors' Meeting Set for Dec. 13 S I N G A P O R E AIMS IMMIGRATION: Court to Hear Wind-Up Petition on Dec. 30 DELTA LINK: Court to Hear Wind-Up Petition on Jan. 6 IBC CAPITAL: Moody's Affirms 'B3' CFR & Alters Outlook to Stable MAPLE BUILDERS: Court to Hear Wind-Up Petition on Dec. 30 PRISMINVEST PARTNERS: Creditors' Proofs of Debt Due on Jan. 16 WIRECARD ASIA: Creditors' Proofs of Debt Due on Jan. 16 S O U T H K O R E A DAEWOO SHIPBUILDING: Hanwha Group's Acquisition Deal Completed T H A I L A N D DAOL SECURITIES: Fitch Gives BB(tha) Rating on THB300MM Debentures - - - - - ================= A U S T R A L I A ================= BELLROCK UAV: First Creditors' Meeting Set for Dec. 21 ------------------------------------------------------ A first meeting of the creditors in the proceedings of Bellrock UAV Pty Ltd, trading as 'Bellrock Australia', will be held on Dec. 21, 2022, at 10:00 a.m. at Level 5, 115 Pitt Street in Sydney. Shumit Banerjee of Westburn Advisory was appointed as administrator of the company on Dec. 12, 2022. BROSA DESIGN: Gets More Than 30 Potential Buyers ------------------------------------------------ Jack Evans at news.com.au reports that embattled online furniture retailer, Brosa, could still be saved after a late surge in interest from potential buyers after going into administration last week. On Dec. 14, it was announced that Brosa - a popular online furniture and home decor retailer - had appointed Richard Tucker and Michael Korda of KordaMentha as voluntary administrators, news.com.au discloses. But on Dec. 16, Mr. Tucker said more than 30 approaches were made in two days after the appointment of administrators. "The potential buyers have been given details of Brosa's operations, and they are doing their due diligence," the report quotes Mr. Tucker as saying. "We hope to have a deal in the next week before the first meeting of creditors." According to the report, Mr. Tucker said buyers were particularly interested in Brosa's online expertise and unique customer base, calling called on customers to be patient so the administrators can focus on saving the business. "I understand the frustration of customers who are waiting for deliveries. But we must concentrate almost completely on this window of opportunity to save the business and provide a better outcome for customers," he said. "We are assessing orders and stock so we can inform customers about their orders as soon as possible." The administrators will contact customers by email as soon as this analysis is completed, news.com.au relays. "This, however, will likely take the Administrators some time". News.com.au relates that the administrator said Brosa grew rapidly during the pandemic, driven by a spike in online shopping. "The business faced challenges when sales declined after the Covid-19 restrictions were lifted. This caused short-term cashflow pressures after a period of phenomenal growth,' Mr. Tucker said. Brosa is a Melbourne-based digital furniture and homewares retailer. CAFE ON: Second Creditors' Meeting Set for Dec. 21 -------------------------------------------------- A second meeting of creditors in the proceedings of Cafe On William Pty Ltd, trading as The Good Place Rockhampton, has been set for Dec. 21, 2022, at 10:30 p.m. at the offices of Worrells at Suite 5A, Level 5, 34 East Street in Rockhampton, 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 Dec. 20, 2022, at 5:00 p.m. Michael Beck of Worrells was appointed as administrator of the company on Nov. 16, 2022. CLOUGH GROUP: May Be Difficult to Recover AUD350MM Owed to Parent ----------------------------------------------------------------- News.com.au reports that a building company that collapsed suddenly leaving AUD10 billion worth of government projects up in the air was owed AUD350 million by its parent company, which could be hard to recover, according to administrators. Perth-based Clough Group went into voluntary administration earlier this month but The Australian reported it may be difficult to recover the AUD350 million owed to the contractor by South African parent company Murray & Roberts, news.com.au relates. Clough built industrial projects in the energy, resources and infrastructure sector, which has left a number of sites in the lurch including the Federal Government's Snowy Hydro 2.0 expansion and other projects in NSW, Western Australia and Papua New Guinea. But the company has received a welcome lifeline with administrators securing a AUD17.6 million deal to save most of its workforce through a part sale of its projects and assets to a company called Webuild that is a partner on the AUD5.9 billion Snowy Hydro 2.0 project, according to news.com.au. news.com.au relates that Webuild, an Italian contractor, is currently in negotiations with Deloitte over the part sale of the company, while it had also agreed to take on Clough's "brands, business references, Australian organisation and certain projects". Other contractors may also take over current projects, although uncertainty remains over ones like the AUD2.3 billion Project EnergyConnect transmission line between South Australia and NSW, and Mitsui and Beach Energy's AUD768 million gas project in Western Australia. However, Deloitte administrator Jason Tracey said the firm had cut a deal with contractors to ensure work could continue and staff would still be paid, which had seen AUD11 million paid out to subcontractors so far, news.com.au relays. "Those arrangements require the principals and clients to put money into our bank account, which is then held to pay employees and indirect overhead costs which relate to both employees, as well as fixed overheads," he told The Australian. "In effect we're being funded week to week by the clients, and that means that the subcontractors and ordinary creditors of the company are getting paid." But court documents have revealed that Clough's collapse has seen 850 creditors lodge a claim of up to AUD284 million, news.com.au discloses. There's also AUD66.6 million owed to unsecured trade suppliers and subcontractors. Administrators are hoping to secure deals for all projects to prevent the company going into liquidation, news.com.au notes. COSMOS ASSET: Second Creditors' Meeting Set for Dec. 20 ------------------------------------------------------- A second meeting of creditors in the proceedings of Cosmos Asset Management Pty Ltd, Formerly Trading as Bitcoin Access Fund; Bitcoin Access Hedge Fund; Bitcoin Wholesale Access Fund; BITETF, has been set for Dec. 20, 2022, at 11:00 a.m. via virtual meeting only. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Dec. 19, 2022, at 11:00 a.m. Anthony Miskiewicz and Catherine Conneely of KordaMentha were appointed as administrators of the company on Dec. 20, 2022. DBL FUNDING 2021-1: Moody's Raises Rating on Class E Notes to Ba1 ----------------------------------------------------------------- Moody's Investors Service has upgraded the ratings on three classes of notes from DBL Funding Trust No. 1 Salute Series 2021-1. Issuer: DBL Funding Trust No. 1 Salute Series 2021-1 Class C Notes, Upgraded to Aa3 (sf); previously on Feb 15, 2022 Upgraded to A1 (sf) Class D Notes, Upgraded to A3 (sf); previously on Apr 15, 2021 Definitive Rating Assigned Baa2 (sf) Class E Notes, Upgraded to Ba1 (sf); previously on Apr 15, 2021 Definitive Rating Assigned Ba2 (sf) RATINGS RATIONALE The upgrades were prompted by (1) an increase in credit enhancement available for the affected notes, and (2) the good collateral performance to date. Following the November 2022 payment date, credit enhancement available for the Class C Notes has increased to 3.1% from 2.5% at the time of the last rating action for these notes in February 2022. Credit enhancement available for the Class D and Class E Notes has increased to 0.9% and 0.3% respectively, from 0.5% and 0.2% at closing in April 2021. Since closing, there have been no loans greater than 30 days in arrears in the pool. The portfolio has incurred no losses to date. Based on the observed performance to date and loan attributes, Moody's has lowered its expected loss assumption to 0.5% of the outstanding pool balance (equivalent to 0.2% of the original pool) from 0.5% of the original pool balance at the last rating action in February 2022. Moody's has lowered its MILAN CE assumption to 4.8% from 6.4% at the last rating action, based on the current portfolio characteristics. The transaction is an Australian RMBS secured by a portfolio of prime residential mortgage loans, originated and serviced by Defence Bank Limited. The principal methodology used in these ratings was "Moody's Approach to Rating RMBS Using the MILAN Framework" published in July 2022. Factors that would lead to an upgrade or downgrade of the ratings: Factors that could lead to an upgrade of the ratings include (1) performance of the underlying collateral that is better than Moody's expectations, and (2) an increase in credit enhancement available for the notes. Factors that could lead to a downgrade of the ratings include (1) performance of the underlying collateral that is worse than Moody's expectations, (2) a decrease in the notes' available credit enhancement, and (3) a deterioration in the credit quality of the transaction counterparties. ORION TRUST 2022-1: S&P Assigns BB(sf) Rating on Class E Notes -------------------------------------------------------------- S&P Global Ratings assigned its ratings to seven classes of residential mortgage-backed securities (RMBS) issued by Perpetual Corporate Trust Ltd. as trustee of Orion Trust 2022-1. Orion Trust 2022-1 is a securitization of prime residential mortgage loans originated by Brighten Financial Pty Ltd. The ratings reflect the following factors. The credit risk of the underlying collateral portfolio, which predominantly comprises residential mortgage loans to prime-quality Australian resident borrowers, and the credit support provided to each class of notes are commensurate with the ratings assigned. Credit support is provided by subordination and excess spread, if any. S&P's assessment of credit risk considers Brighten Financial's underwriting standards and approval process, and its servicing quality. The rated notes can meet timely payment of interest and ultimate payment of principal under the rating stresses. Key rating factors are the level of subordination provided, the principal draw function, the liquidity reserve, and the provision of an extraordinary expense reserve. S&P's analysis is on the basis that the notes are fully redeemed via the principal waterfall mechanism under the transaction documents by their legal final maturity date, and it assumes the notes are not called at or beyond the call-option date. S&P said, "Our ratings also take into account the counterparty exposure to Westpac Banking Corp. as bank account provider. We also have factored into our ratings the legal structure of the trust, which is established as a special-purpose entity and meets our criteria for insolvency remoteness. "We have assessed the servicing and standby servicing arrangements in this transaction under our "Global Framework For Assessing Operational Risk In Structured Finance Transactions" criteria, published Oct. 9, 2014, and concluded that there are no constraints on the maximum rating that can be assigned to the notes." Ratings Assigned Orion Trust 2022-1 Class A-S, A$170.00 million: AAA (sf) Class A-L, A$150.00 million: AAA (sf) Class A2, A$34.00 million: AAA (sf) Class B, A$18.48 million: AA (sf) Class C, A$10.56 million: A (sf) Class D, A$7.36 million: BBB (sf) Class E, A$4.48 million: BB (sf) Class F1, A$2.56 million: Not rated Class F2, A$2.56 million: Not rated ROSEMARY TECHNOLOGIES: First Creditors' Meeting Set for Dec. 21 --------------------------------------------------------------- A first meeting of the creditors in the proceedings of Rosemary Technologies Pty Ltd will be held on Dec. 21, 2022, at 4:30 p.m. at the offices of Hayes Advisory at Level 16, 55 Clarence Street in Sydney, and virtual meeting technology. Alan Hayes and Wayne Marshall of Hayes Advisory were appointed as administrators of the company on Dec. 12, 2022. SRD QLD: First Creditors' Meeting Set for Dec. 13 ------------------------------------------------- A first meeting of the creditors in the proceedings of SRD QLD Pty Ltd will be held on Dec. 23, 2022, at 10:00 a.m. at the offices of Morgan Conley Solicitors at 6/239 George Street in Brisbane. Daniel Moore of BCR Advisory was appointed as administrator of the company on Dec. 13, 2022. VIG ASSET: ASIC Cancels AFS licence Following Receivership ---------------------------------------------------------- The Australian Securities and Investments Commission (ASIC) has cancelled the Australian financial services (AFS) license of VIG Asset Management Pty Ltd (VIG) effective Dec. 8, 2022. The licence authorised VIG to deal in interests in managed investment schemes to wholesale clients. ASIC cancelled the licence because receivers and managers were appointed to the property of VIG. Philip Campbell-Wilson and Matthew Byrnes of Grant Thornton were appointed as joint receivers and managers on June 25, 2020. VIG may apply to the Administrative Appeals Tribunal (AAT) for a review of ASIC's decision. VIG has held AFS licence no. 225867 since March 20, 2003. YOURGROCER: Shut Operations Due to Tough Economic Conditions ------------------------------------------------------------ David Adams at SmartCompany reports that Melbourne fresh produce delivery service YourGrocer ceased operations on Dec. 16, exiting the hard-hit market just days before the Christmas rush. According to SmartCompany, the Nine papers reported YourGrocer founder and chief executive Morgan Ranieri informed customers of the decision in an email on Dec. 14, declaring the company had no choice but to shut up shop. Mr. Ranieri and the YourGrocer team "cannot keep the company going any longer so have been forced to cease operating", he told customers. Dec. 16 was the last day of YourGrocer deliveries, with all future orders cancelled, including orders booked for the rapidly approaching festive period, the report notes. Mr. Ranieri apologised to customers for the "inconvenience and disappointment", the email said. In an online notice to customers ahead of the Christmas rush, a YourGrocer representative said the company had been "negatively affected by the tough global economic conditions" and was forced to cancel weekend and same-day deliveries, SmartCompany relays. "While we remain deeply committed to partnering with independent businesses to bring you the best local food, these changes are unavoidable for the time being," the representative said. Founded in 2013 in Melbourne's Brunswick East, YourGrocer partnered directly with independent market retailers to offer their fresh produce online. ========= C H I N A ========= LANZHOU CONSTRUCTION: Moody's Affirms 'Caa1' CFR, Outlook Negative ------------------------------------------------------------------ Moody's Investors Service has affirmed the Caa1 corporate family rating of Lanzhou Construction Investment (Holding) Group Co., Ltd. The rating outlook remains negative. "The affirmation reflects Lanzhou Construction's ongoing severe liquidity and refinancing risks, given the company's slow progress in addressing its large maturities over the next six months," says Ying Wang, a Moody's Vice President and Senior Analyst. "Moody's have lowered Lanzhou city government's capacity to support (GCS) score to ba1 from baa3 based on Moody's expectation that the Gansu province and the city's economic fundamentals will remain weak in the near term. However, the lowering will not immediately affect Lanzhou Construction's Caa1 CFR because the CFR already reflects the tight regional funding environment as well as the uncertainty regarding the adequacy and timeliness of government support for the company," Wang adds. The negative outlook reflects Lanzhou Construction's weak debt-repayment ability over the next 6-12 months. RATINGS RATIONALE The Caa1 rating primarily reflects the company's severe liquidity risk. Although the company managed to repay its public bonds through the support of Lanzhou and Gansu governments over the past 12 months, it has not yet restored its ability to refinance its debts on its own from the bond market or completed a financing with financial institutions to repay or refinance a substantial amount of debts coming due over the next six months. Lanzhou Construction's CFR, which is multiple notches below Lanzhou's GCS, and negative outlook have already considered the company's weak sustainability of relying solely on government's co-ordination efforts to repay its debts over the next 12 -18 months. As such, the one notch lowering of Lanzhou's GCS does not have a material impact on the company's current rating. The lowering of Lanzhou city's GCS mainly reflects Moody's expectation that the Gansu province and the city's economic fundamentals will remain weak in the near term due to China's sluggish land market. In the longer term, the province and city's economic growth will remain under pressure due to fundamental weaknesses including persistent population outflows and a less diversified economy. Weak growth will further strain Lanzhou's fiscal profile, which is characterized by a relatively low tax revenue-generating ability and high reliance on transfer payments. In addition, Lanzhou's land sales revenue has been volatile and will likely keep weak in the near term, creating challenges to its fiscal performance. Moreover, the sluggish economy will constrain Lanzhou's financial sector, which is already weak compared with other regions in China. The funding environment in Gansu province and Lanzhou city has not recovered due to rising investor risk aversion. The region's relatively weak local financial sector with limited financial resources constrains the Lanzhou government's ability to coordinate with financial institutions to provide timely liquidity support to its local government financing vehicles (LGFVs), to a greater extent than Moody's previously estimated. Lanzhou Construction's Caa1 CFR incorporates (1) the Lanzhou city government's GCS score of ba1; and (2) Moody's assessment of the company's liquidity risk and how its characteristics affect the Lanzhou city government's propensity to support, which results in a six-notch downward adjustment. Moody's assessment of Lanzhou's GCS reflects (1) Lanzhou city's status as the capital of Gansu province, (2) the city's relatively weak economic and fiscal metrics, (3) the constraints faced by its local financial sector, and (4) limited disclosure by its local state-owned enterprises (SOEs), which hinders a complete assessment of the city's capacity to provide support. The Caa1 rating primarily reflects the company's severe liquidity risk. It also reflects the Lanzhou city government's propensity to support Lanzhou Construction, based on its 100% ownership of the company and the company's status as the dominant LGFV providing essential public services in the city. This strength is counterbalanced by the company's weak debt management and the contingent risks arising from the external guarantees it has provided to other companies. Lanzhou Construction's access to capital markets remains constrained and its negotiation with financial institutions to secure adequate refinancing has been slower than Moody's expected. At the same time, Lanzhou Construction faces a large amount of bonds coming due or becoming puttable over the next six months. The company currently only relies on resources from the Lanzhou city government and Gansu provincial government to repay. However, there is execution risk associated with the timeliness and adequacy of government support. In addition, Moody's believes Lanzhou Construction's ability to meet its other debt obligations will decline if the company is unable to negotiate refinancing terms with its creditors. Lanzhou Construction's rating also considers the following environmental, social and governance (ESG) factors. Lanzhou Construction has a neutral to low credit exposure to environmental risks, highly negative credit exposure to social risks, and very highly negative credit exposure to governance risks. The effect of these considerations on the rating cannot be fully mitigated by the expected support from the Lanzhou government, in times of need, to the company. Lanzhou Construction's neutral to low environmental risk exposure is driven by the company's neutral to low exposure to physical climate risks in Lanzhou city, in terms of extreme weather patterns and their impact on its urban construction projects. The company's exposure to carbon transition, water management, waste and pollution and natural capital is also neutral to low. Lanzhou Construction's highly negative social risk exposure is common among most LGFVs and relates to demographic and societal trends. The company invests in urban construction projects as it implements public policy initiatives mandated by the Lanzhou government. Population growth and demographic and societal trends shape the company's development targets and affect the Lanzhou city government's propensity to support the company. Lanzhou Construction's very highly negative governance risk is driven by a very highly negative score on financial strategy and risk management due to the weak debt management and weak predictability of government payments, and highly negative score on management creditability and track record due to the management's lack of experience and expertise to deal with capital market volatility. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING Moody's could downgrade the rating if Lanzhou Construction's liquidity deteriorates further, or if it fails to meet its debt obligations. An upgrade of the ratings is unlikely, given the negative outlook. However, Moody's could revise the outlook to stable if Lanzhou Construction alleviates its high liquidity pressure and strengthens its funding access. The principal methodology used in this rating was Local Government Financing Vehicles in China Methodology published in April 2022. Established in 2016, Lanzhou Construction Investment (Holding) Group Co., Ltd. is 100% owned by the Lanzhou State-owned Asset Supervision and Administration Commission through a parent intermediary, Lanzhou Investment (Holdings) Group Co., Ltd. The company mainly engages in urban infrastructure construction, shantytown redevelopment, utilities, public services and transportation in Lanzhou city. ========= I N D I A ========= A N WIRES: CRISIL Keeps B Debt Ratings in Not Cooperating --------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of A N Wires (ANW) continue to be CRISIL B/Stable Issuer Not Cooperating. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 8.5 CRISIL B/Stable (Issuer Not Cooperating) Proposed Cash 0.5 CRISIL B/Stable (Issuer Not Credit Limit Cooperating) CRISIL Ratings has been consistently following up with ANW for obtaining information through letters and emails dated September 16, 2022 and November 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of ANW, which restricts CRISIL Ratings ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on ANW is consistent with Assessing Information Adequacy Risk. Based on the last available information, the ratings on bank facilities of ANW continues to be CRISIL B/Stable Issuer Not Cooperating. ANW was established in 2010 as a partnership firm by Mr Ashwani Kumar Mahajan and Mr Nand Kishore Mahajan. The firm manufactures galvanised wires and fine wires along with various categories of wires. The facility is in Damtal, Himachal Pradesh. A.S. EMPORIUM: CRISIL Keeps B+ Debt Rating in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of A.S. Emporium (ASE) continues to be CRISIL B+/Stable Issuer Not Cooperating. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5.5 CRISIL B+/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with ASE for obtaining information through letters and emails dated September 16, 2022 and November 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of ASE, which restricts CRISIL Ratings ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on ASE is consistent with Assessing Information Adequacy Risk. Based on the last available information, the ratings on bank facilities of ASE continues to be CRISIL B+/Stable Issuer Not Cooperating. Set up in 2001 as a partnership firm by Mr Selvaraj and his wife Mrs Subhadra, ASE trades in knitted fabric. The firm is based in Tirupur, Tamil Nadu. AADHI CARS: CRISIL Keeps B Debt Ratings in Not Cooperating ---------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Aadhi Cars Private Limited (ACPL) continue to be CRISIL B/Stable Issuer Not Cooperating. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Inventory Funding 28 CRISIL B/Stable (Issuer Not Facility Cooperating) Inventory Funding 10.23 CRISIL B/Stable (Issuer Not Facility Cooperating) CRISIL Ratings has been consistently following up with ACPL for obtaining information through letters and emails dated September 16, 2022 and November 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of ACPL, which restricts CRISIL Ratings ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on ACPL is consistent with Assessing Information Adequacy Risk. Based on the last available information, the ratings on bank facilities of ACPL continues to be CRISIL B/Stable Issuer Not Cooperating. ACPL is a Coimbatore-based company, set up by Mr S Srinivasan and Ms K Kalaivani in 2012. The company is an authorised dealer of MSIL, and is engaged in sale of new cars, pre-owned cars (under True Value outlet), spare parts and accessories. It also undertakes servicing of vehicles and runs the Maruti Driving School (MDS). ABHIGNA RICE: CRISIL Keeps B Debt Ratings in Not Cooperating ------------------------------------------------------------ CRISIL Ratings said the ratings on bank facilities of Abhigna Rice and Parboiled Industries (ARPI) continue to be CRISIL B/Stable Issuer Not Cooperating. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4 CRISIL B/Stable (Issuer Not Cooperating) Long Term Loan 2.3 CRISIL B/Stable (Issuer Not Cooperating) Proposed Long Term 0.7 CRISIL B/Stable (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with ARPI for obtaining information through letters and emails dated September 16, 2022 and November 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of ARPI, which restricts CRISIL Ratings ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on ARPI is consistent with Assessing Information Adequacy Risk. Based on the last available information, the ratings on bank facilities of ARPI continues to be CRISIL B/Stable Issuer Not Cooperating. Set up in 2012, ARPI mills and processes paddy into rice, rice bran, broken rice and husk. Its milling unit is in Mahbubnagar (Telangana). The firm has four partners: Mr. Kondaiah, Mr. Venkataiah, Mr. Narasimhulu and Mr. Bhaskar. ADITYA AGRI: CRISIL Keeps B Debt Rating in Not Cooperating ---------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Aditya Agri Machineries (AAM) continues to be CRISIL B/Stable Issuer Not Cooperating. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Fund- 5 CRISIL B/Stable (Issuer Not Based Bank Limits Cooperating) CRISIL Ratings has been consistently following up with AAM for obtaining information through letters and emails dated September 16, 2022 and November 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of AAM, which restricts CRISIL Ratings ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on AAM is consistent with Assessing Information Adequacy Risk. Based on the last available information, the ratings on bank facilities of AAM continues to be CRISIL B/Stable Issuer Not Cooperating. AAM was established as a proprietorship firm by Mr Deepak Khade in 2008. It manufactures and exports agro processing machineries, mainly milling machines, pulse-polishing machines, grading machines, storage silo, and grain dryer. The manufacturing facility is in Akola (Maharashtra). AL HIND: CRISIL Keeps B Debt Rating in Not Cooperating Category --------------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Al Hind Educational and Charitable Trust (AHECT) continues to be CRISIL B/Stable Issuer Not Cooperating. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 20 CRISIL B/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with AHECT for obtaining information through letters and emails dated September 16, 2022 and November 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of AHECT, which restricts CRISIL Ratings ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on AHECT is consistent with Assessing Information Adequacy Risk. Based on the last available information, the ratings on bank facilities of AHECT continues to be CRISIL B/Stable Issuer Not Cooperating. Set up in 2009, AHECT runs the Eranad Knowledge City, which operates three institutions, namely, Eranad Knowledge City College of Architecture, Eranad Knowledge City Technical Campus, And Eranad Knowledge City College of Commerce & Sciences. ALFANSO VITRIFIED: CRISIL Keeps B+ Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Alfanso Vitrified Private Limited (AVPL) continue to be CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 4 CRISIL A4 (Issuer Not Cooperating) Cash Credit 10 CRISIL B+/Stable (Issuer Not Cooperating) Term Loan 31.5 CRISIL B+/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with AVPL for obtaining information through letters and emails dated September 16, 2022 and November 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of AVPL, which restricts CRISIL Ratings ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on AVPL is consistent with Assessing Information Adequacy Risk. Based on the last available information, the ratings on bank facilities of AVPL continues to be CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating. AVPL is a private limited company incorporated in 2015, in the Morbi district of Gujarat. AVPL has set up a manufacturing unit of vitrified tiles. Its production capacity is 75,000 MT per annum. Commercial production have already commenced in end of December 2016. ALPINE EXPO: CRISIL Keeps B Debt Ratings in Not Cooperating ----------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Alpine Expo Tex Private Limited (AETPL) continue to be CRISIL B/Stable Issuer Not Cooperating. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 20 CRISIL B/Stable (Issuer Not Cooperating) Proposed Cash 5 CRISIL B/Stable (Issuer Not Credit Limit Cooperating) CRISIL Ratings has been consistently following up with AETPL for obtaining information through letters and emails dated September 16, 2022 and November 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of AETPL, which restricts CRISIL Ratings ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on AETPL is consistent with Assessing Information Adequacy Risk. Based on the last available information, the ratings on bank facilities of AETPL continues to be CRISIL B/Stable Issuer Not Cooperating. AETPL, incorporated in 1995, is a Delhi-based company that trades in woven fabrics. Mr Jagdish Agarwal, Mr Kapil Agarwal, and Mr Prayas Agarwal are the promoters. ANUBHA INDUSTRIES: Ind-Ra Affirms BB LongTerm Issuer Rating ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Anubha Industries Private Limited's (AIPL) Long-Term Issuer Rating at 'IND BB'. The Outlook is Negative. The instrument-wise rating actions are: -- INR800 mil. Fund-based working capital limits affirmed with IND BB/Negative rating; -- INR592.2 mil. Term loans due on January 2026 affirmed with IND BB/Negative rating; and -- INR35.5 mil. Non-fund based working capital limits affirmed with IND A4+ rating. The Negative Outlook reflects Ind-Ra's expectation of continued stretched liquidity position for the company due to high debt repayments due over FY23 and FY24. Key Rating Drivers AIPL's revenue increased 49% yoy to INR3,786 million in FY22, on account of a recovery in the sales volume post COVID-19. As per the management, the company achieved revenue of INR2,248 million in 1HFY23. As of November 2022, it has an order book of around INR750 million, to be executed by January 2023. Ind-Ra expects the company to sustain its volume growth backed by a healthy order book position. With the volume improvement, the average EBITDA per meter in FY22 rose to INR11.75 (FY21: negative INR15.93; FY20: INR15.41). AIPL's EBITDA margins thus recovered and was modest at 5.4% in FY22 (FY21: negative: 9%) and ROCE was 4.1% (negative 9.1%). With the likely sustenance in volume growth, Ind-Ra expects the company's profitability to see a marginal improvement in FY23 although it would remain lower than pre-covid levels. The ratings further reflect AIPL's weak credit metrics due to the leveraged balance sheet position and high-cost working capital funding. The gross interest coverage (operating EBITDA/ gross interest expense) was 1.05x in FY22 (FY21: negative 0.77x) and the net leverage (total net debt/ EBITDA) was 8.52x in FY22(FY21: negative 13.93x). Ind-Ra expects the credit metrics to improve in FY23, although remain weak, on account of a likely improvement in the internal accruals. Liquidity Indicator - Stretched: The company's fund-based working capital limits remained fully utilized over the 12 months ended October 2022. The cash flow from operations remained negative at INR9.66 million in FY22 (FY21: negative INR265.33 million) due to high interest servicing and negative changes in the year end working capital. At FYE22, AIPL's cash and cash equivalents stood at INR32.56 million (FYE21: INR0.85 million). During FY22, the promoters infused INR220.2 million in AIPL to support the liquidity. The company has scheduled debt repayment of INR272 million in FY23 and INR194 million in FY24, which is likely to be met through funds from promoters and cash accruals. Ind-Ra expects the liquidity to remain stretched and the company dependent on promoters' funding in FY23 as well. However, the ratings remain supported by AIPL's promoters' more than four decades of experience in the textile industry through its other group companies, leading to established relationships with its customers and suppliers. Rating Sensitivities Positive: An improvement in the liquidity position, along with an increase in the revenue and EBITDA margins, leading to an improvement in the interest coverage above 1.25x, all on a sustained basis, will be positive for the ratings. Negative: Inability to improve the scale of operations or further deterioration in the liquidity profile or interest coverage remaining below 1.25x, all on a sustained basis, will be negative for the ratings. Company Profile Incorporated in 2012, Surat-based AIPL manufactures denim and cotton fabrics. The company has an installed capacity of 20 million meters. Aditya Goyal is the managing director. ARYA TRADER: CRISIL Keeps B+ Debt Ratings in Not Cooperating ------------------------------------------------------------ CRISIL Ratings said the ratings on bank facilities of Arya Trader - Jhansi (ATJ) continues to be CRISIL B+/Stable Issuer Not Cooperating. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Electronic Dealer 10 CRISIL B+/Stable (Issuer Not Financing Scheme Cooperating) (e-DFS) Proposed Inventory 5 CRISIL B+/Stable (Issuer Not Funding Cooperating) CRISIL Ratings has been consistently following up with ATJ for obtaining information through letters and emails dated September 16, 2022 and November 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of ATJ, which restricts CRISIL Ratings ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on ATJ is consistent with Assessing Information Adequacy Risk. Based on the last available information, the ratings on bank facilities of ATJ continues to be CRISIL B+/Stable Issuer Not Cooperating. Set-up in 2014, AJI is a proprietorship concern of Ravikant Dubey-it began operations only in November 2015. The firm is a super distributor of Patanjali products in 7 districts of Uttar Pradesh-Fatehpur, Mahoba, Banda, Jalaun, Hamirpur, Lalitpur and Jhansi. In December 2017, the districts of Auraiya and Etawah were also awarded. AVIVET NUTRITIONAL: CRISIL Keeps B Debt Rating in Not Cooperating ----------------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Avivet Nutritional Services Private Limited (Avivet) continues to be CRISIL B/Stable Issuer Not Cooperating. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 12.36 CRISIL B/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with Avivet for obtaining information through letters and emails dated September 16, 2022 and November 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of Avivet, which restricts CRISIL Ratings ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on Avivet is consistent with Assessing Information Adequacy Risk. Based on the last available information, the ratings on bank facilities of Avivet continues to be CRISIL B/Stable Issuer Not Cooperating. Incorporated in 2010, Avivet is promoted by Mr. Pradip Linge and his wife Ms. Neelima Linge. The company trades in animal nutrition products and provides consultancy for livestock farming. Along with that it has dairy farm in Nagpur wherein it sells milk and its by product under its own brand 'Mai Milk'. AWADE INDUSTRIES: CRISIL Keeps B+ Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Awade Industries Private Limited (AIPL) continue to be CRISIL B+/Stable Issuer Not Cooperating. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Term 10 CRISIL B+/Stable (Issuer Not Loan Cooperating) Proposed Working 7 CRISIL B+/Stable (Issuer Not Capital Facility Cooperating) CRISIL Ratings has been consistently following up with AIPL for obtaining information through letters and emails dated September 16, 2022 and November 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of AIPL, which restricts CRISIL Ratings ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on AIPL is consistent with Assessing Information Adequacy Risk. Based on the last available information, the ratings on bank facilities of AIPL continues to be CRISIL B+/Stable Issuer Not Cooperating. Incorporated in 1995 as a private limited company, AIPL manufactures kraft paper from waste papers. The Kolhapur-based company has been promoted by members of the Awade family. BABBOO RICE: CRISIL Keeps B Debt Ratings in Not Cooperating ----------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Babboo Rice and General Mills (BRGM) continue to be CRISIL B/Stable Issuer Not Cooperating. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7 CRISIL B/Stable (Issuer Not Cooperating) Export Packing 2.5 CRISIL B/Stable (Issuer Not Credit & Export Cooperating) Bills Negotiation/ Foreign Bill discounting Warehouse 2.5 CRISIL B/Stable (Issuer Not Financing Cooperating) CRISIL Ratings has been consistently following up with BRGM for obtaining information through letters and emails dated September 16, 2022 and November 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of BRGM, which restricts CRISIL Ratings ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on BRGM is consistent with Assessing Information Adequacy Risk. Based on the last available information, the ratings on bank facilities of BRGM continues to be CRISIL B/Stable Issuer Not Cooperating. BRGM was set up in 1978 as a partnership between two brothers, Mr Vijay Kumar Sethi and Mr Surinder Sethi. The firm processes and sells basmati rice, mainly the PUSA 1121 variety; it also deals in non-basmati rice. Its plant at Amritsar (Punjab) has sorting and milling capacities, each of 3 tonne per hour. BLS INSTITUTE: CRISIL Lowers Rating on INR7.4cr Cash Loan to B -------------------------------------------------------------- CRISIL Ratings has revised the ratings on bank facilities of BLS Institute of Management (BLS) to CRISIL B/Stable Issuer Not Cooperating from CRISIL BB-/Stable Issuer Not Cooperating. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit/ 7.4 CRISIL B/Stable (ISSUER NOT Overdraft facility COOPERATING; Revised from 'CRISIL BB-/Stable ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with BLS for obtaining information through letters and emails dated September 16, 2022 and November 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of BLS, which restricts CRISIL Ratings ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on BLS is consistent with Assessing Information Adequacy Risk. Based on the last available information, the ratings on bank facilities of BLS Revised to CRISIL B/Stable Issuer Not Cooperating from CRISIL BB-/Stable Issuer Not Cooperating. BLS was founded in 1996, by Mr Somdev Sharma, based in Mohan Nagar, Uttar Pradesh. BLS operates two schools, both affiliated to CBSE i.e. Mount Litera Zee School, Ghaziabad and Yaduvanshi Shiksha Niketan, Jind, Haryana. Mr Kapil Garg, Mrs Novita Chopra and Mr Somdev Sharma oversee the daily operations of the society. BLUE AUTOWORLD: CRISIL Keeps B+ Ratings in Not Cooperating ---------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Blue Autoworld Private Limited (BAPL) continue to be CRISIL B+/Stable Issuer Not Cooperating. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4.9 CRISIL B+/Stable (Issuer Not Cooperating) Proposed Long Term 3.1 CRISIL B+/Stable (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with BAPL for obtaining information through letters and emails dated September 16, 2022 and November 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of BAPL, which restricts CRISIL Ratings ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on BAPL is consistent with Assessing Information Adequacy Risk. Based on the last available information, the ratings on bank facilities of BAPL continues to be CRISIL B+/Stable Issuer Not Cooperating. Incorporated in 2010 and promoted by Mr Subhas Rail and Mr Panchanan Mishra, BAPL is an authorised dealer and service centre for all two-wheelers of TVS in Malda, West Bengal. CHETAN ALLOYS: CRISIL Keeps B Debt Rating in Not Cooperating ------------------------------------------------------------ CRISIL Ratings said the rating on bank facilities of Chetan Alloys Private Limited (CAPL) continues to be CRISIL B/Stable Issuer Not Cooperating. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 9 CRISIL B/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with CAPL for obtaining information through letters and emails dated September 16, 2022 and November 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of CAPL, which restricts CRISIL Ratings ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on CAPL is consistent with Assessing Information Adequacy Risk. Based on the last available information, the ratings on bank facilities of CAPL continues to be CRISIL B/Stable Issuer Not Cooperating. CAPL was incorporated in 2011, it is engaged in trading of scrap products of ferrous metals and non-ferrous metals like aluminum, bronze, zinc, titanium etc. CAPL is owned & managed by Mr. Chetan Maheshwari and Mr. Satish Maheshwari. CREATIVE EDUCATIONAL: CRISIL Keeps B+ Rating in Not Cooperating --------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Creative Educational Society (CES) continue to be CRISIL B+/Stable Issuer Not Cooperating. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 8.8 CRISIL B+/Stable (Issuer Not Cooperating) Secured Overdraft 1.2 CRISIL B+/Stable (Issuer Not Facility Cooperating) CRISIL Ratings has been consistently following up with CES for obtaining information through letters and emails dated September 16, 2022 and November 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of CES, which restricts CRISIL Ratings ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on CES is consistent with Assessing Information Adequacy Risk. Based on the last available information, the ratings on bank facilities of CES continues to be CRISIL B+/Stable Issuer Not Cooperating. Established in 2005, CES runs two colleges offering undergraduate courses in engineering and pharmacy and post graduate courses in pharmacy. Daily operations are managed by the chairman, Mr S Rama Subbha Reddy. DALKAN SHIPBREAKING: Ind-Ra Assigns BB Long Term Issuer Rating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Dalkan Shipbreaking Ltd. (DSBL) a Long-Term Issuer Rating of 'IND BB'. The Outlook is Stable. The instrument-wise rating actions are: -- INR50 mil. Fund-based working capital limit* assigned with IND BB/Stable/IND A4+ rating; and -- INR400 mil. Non-fund-based working capital limit assigned with IND A4+ rating. *Fund-based limit is a sublimit of non-fund-based limit. Analytical Approach: Ind-Ra has taken a consolidated view of DSBL, Paras Steel Corporation ('IND BB'/Stable) and Vijaykumar & Co ('IND BB'/Stable), jointly referred to as the Bhupatrai Chimanlal group, while arriving at the ratings. This is in view of the strong strategic and operational ties between the companies and the common management. Key Rating Drivers The group has a medium scale of operations with consolidated revenues rising to INR1,416 million in FY22 (FY21: INR1,077million, FY20: INR1,121 million), mainly driven by higher sales of scrap, as the company had purchased larger sized ships. The group's revenue highly depends on the type of ships procured by the entities to dismantle, leading to the absence of revenue visibility. Ind-Ra expects the consolidated revenues for FY23 to remain in line with FY22 or see a marginal decline, since the group had just one ship to breakdown during 1HFY23. Liquidity Indicator - Stretched: The fund-based working capital utilization of the group has been 35% for the 12 months ended October 2022. The group utilizes its non-fund-based letter of credit (LC) limits for purchasing ships. The tenure for the same depends upon the size and tonnage of ships and ranges between 180-270 days. An upfront cash margin of 15% is retained at the time of opening an LC. The group parks its surplus in fixed deposits. This ensures gradual a build-up of reserve funds to meet the sizeable LC payment obligations on maturity. As of October 31, 2022, the group had no outstanding LC. The group's working capital cycle improved to 181 days in FY22 (FY21: 222 days, FY20: 448 days), but remained elongated, due to a decrease in the inventory days to 129 (183, 408). The group's payable period was 9 days in FY22 (FY21: 10 days, FY20: 7 days) and receivable days were 60 (50, 46). The group has a total debt repayment of INR6.9 million for the years FY23 and FY24, respectively. The group had cash and bank balances of INR108 million at FYE22, out of which INR105 million is lien marked against LC (FYE21: INR89 million). The ratings factor in the group's modest and volatile EBITDA margins. The EBITDA margins declined to 2.5% in FY22 (FY21: 3.81%) due to lower-than-average realization per unit from the ships purchased for dismantling and higher average metal/scrap prices. The return over capital employed stood at 3.5% in FY22 (FY21: 2.7%). The operating margins of the group fluctuated between 2%-6% over FY19-FY22, reflecting the volatility in the prices of steel scrap as well as the purchase price of ships. The ratings reflect the group's modest credit metrics. The interest coverage (operating EBITDA/gross interest) improved to 1.01x in FY22 (FY21: 0.66x) mainly due to a reduction in interest cost INR36 million (INR41 million), while the net financial leverage (adjusted net debt/operating EBITDA) deteriorated to 20.97x (17.32x) due to an increase in the overall debt to INR854 million (INR799 million). The agency, however, expects the company's credit metrics to remain in the line with FY22 as the group's operating performance may either remain stable or see a marginal decline. The ratings factor in the favorable location of the ship-breaking yard and over 30 years of promoter's experience in the ship breaking industry. The Bhupatrai Chimanlal group's ship-breaking yard is located in the Alang-Sosiya belt in Gujarat, which is one of the world's largest ship-breaking clusters and constitutes almost 90% of India's ship-breaking activity. Standalone Performance: On a standalone basis, DSBL's revenue was INR579 million in FY22 (FY21: INR358 million), while its operating margins were 2% (7%), the interest coverage was 0.73x (0.97x) and net leverage was 15.65x (8x). Rating Sensitivities Positive: An improvement in the consolidated scale of operations and liquidity position, leading to the consolidated interest coverage exceeding 1.3x, on a sustained basis, will be positive for the ratings. Negative: Deterioration in the consolidated scale of operations and liquidity position, leading to deterioration of the consolidated credit metrics on a sustained basis, would be negative for the ratings. Company Profile DSBL was incorporated in 1994 to carry out ship recycling activities. The company operates from the Alang Ship Breaking Yard in Bhavnagar, Gujarat. DILEEP TRADERS: CRISIL Keeps B+ Debt Rating in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Dileep Traders - Kollam (DTK) continues to be CRISIL B+/Stable Issuer Not Cooperating. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7 CRISIL B+/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with DTK for obtaining information through letters and emails dated September 16, 2022 and November 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of DTK, which restricts CRISIL Ratings ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on DTK is consistent with Assessing Information Adequacy Risk. Based on the last available information, the ratings on bank facilities of DTK continues to beCRISIL B+/Stable Issuer Not Cooperating. Set up as a Proprietorship firm in 2000 by Mr. Dileep Kunju, Dileep Traders - Kollam (DTK) is engaged in the processing of raw cashew nuts and sales of cashew kernels. DTK currently operates three processing facility, two in Kerala and one in Tamil Nadu with combined installed capacity of dispatching around 8000 kg per day of cashew kernels. DR. RAJENDRA: CRISIL Keeps B+ Debt Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Dr. Rajendra Prasad Educational Society (DRP) continue to be CRISIL B+/Stable Issuer Not Cooperating. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Overdraft Facility 4 CRISIL B+/Stable (Issuer Not Cooperating) Term Loan 5 CRISIL B+/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with DRP for obtaining information through letters and emails dated September 16, 2022 and November 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of DRP, which restricts CRISIL Ratings ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on DRP is consistent with Assessing Information Adequacy Risk. Based on the last available information, the ratings on bank facilities of DRP continues to be CRISIL B+/Stable Issuer Not Cooperating. Set up in 2000 and based in Lucknow, DRP runs nine colleges and two schools. The society is promoted by Mr Vijay Srivastava and Mrs Mamta Srivastava, and offers management, law, and commerce courses, and school education. DUTCH BLUE: CRISIL Keeps B+ Debt Ratings in Not Cooperating ----------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Dutch Blue Fashions (DBF) continue to be CRISIL B+/Stable Issuer Not Cooperating. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Export Packing 4 CRISIL B+/Stable (Issuer Not Credit Cooperating) Proposed Long Term 2 CRISIL B+/Stable (Issuer Not Bank Loan Facility Cooperating) Term Loan 4 CRISIL B+/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with DBF for obtaining information through letters and emails dated September 16, 2022 and November 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of DBF, which restricts CRISIL Ratings ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on DBF is consistent with Assessing Information Adequacy Risk. Based on the last available information, the ratings on bank facilities of DBF continues to be CRISIL B+/Stable Issuer Not Cooperating. DBF was established in 1996 as a partnership firm by Mr S Sreethar Babu and Mr S Mahalakshmi. The firm, based in Tiruppur, Tamil Nadu, manufactures and exports RMG for men, women, and children. EASTERNZONE INDUSTRIES: CRISIL Keeps B Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Easternzone Industries Private Limited (EZIPL) continue to be CRISIL B/Stable Issuer Not Cooperating. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7 CRISIL B/Stable (Issuer Not Cooperating) Term Loan 2.95 CRISIL B/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with EZIPL for obtaining information through letters and emails dated September 16, 2022 and November 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of EZIPL, which restricts CRISIL Ratings ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on EZIPL is consistent with Assessing Information Adequacy Risk. Based on the last available information, the ratings on bank facilities of EZIPL continues to be CRISIL B/Stable Issuer Not Cooperating. Incorporated in 2013, EZIPL is managed by its promoter-director, Mr Surendra Nath Sahoo, along with Mr Samarjeet Sahoo, Mr Sanjay Kumar Sahoo, and Mr Subhrajeet Sahoo. The company has set up a 12-tonne-per-hour non-basmati rice mill unit at Cuttack, Odisha. EMS AND EXPORTS: CRISIL Keeps C Debt Rating in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of EMS and Exports (EMS; a part of the Five Core group) continue to be CRISIL C/CRISIL A4 Issuer Not Cooperating. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bill Discounting 20 CRISIL A4 (Issuer Not Cooperating) Bill Discounting 5 CRISIL A4 (Issuer Not Cooperating) Bill Discounting 12 CRISIL A4 (Issuer Not Cooperating) Cash Credit 2 CRISIL C (Issuer Not Cooperating) Packing Credit in 16 CRISIL A4 (Issuer Not Foreign Currency Cooperating) CRISIL Ratings has been consistently following up with EMS for obtaining information through letters and emails dated September 16, 2022 and November 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of EMS, which restricts CRISIL Ratings ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on EMS is consistent with Assessing Information Adequacy Risk. Based on the last available information, the ratings on bank facilities of EMS continues to be CRISIL C/CRISIL A4 Issuer Not Cooperating. For arriving at the ratings, CRISIL Ratings has combined the business and financial risk profiles of Five Core Electronics Ltd (FCEL), EMS, Indian Acoustics Pvt Ltd (IAPL), Visual and Acoustics Corporation LLP (Visual), Digi Export Ventures Pvt Ltd (Digi), Happy Acoustics Pvt Ltd (Happy), 5 Core Acoustics Pvt Ltd (5Core), and Neha Exports (Neha). This is because all these entities, collectively referred to as the Five Core group, have common management, brand, customers, suppliers, and strong operational synergies. Furthermore, 5Core is a wholly owned subsidiary of FCEL. About the Group FCEL is a part of the Five Core group that manufactures electronic equipment, including public address systems, speakers, amplifiers, microphones, woofers; and electrical accessories under the 5 Core brand. The group exports products to 56 countries. Mr Amarjit Kalra and his family manage the operations. Incorporated in 2002, FCEL is listed on the National Stock Exchange Emerge platform since May 2018 and has manufacturing units in Delhi and Bhiwadi (Rajasthan). Set up in 2008 as a partnership firm, EMS has a facility in Kashipur (Uttarakhand). Visual is a limited liability partnership firm set up in 2008, with a unit in Mundka (Delhi). Neha is a proprietorship firm set up in 2009 and has a unit at Daruhera (Gurugram). Set up in 2010, 2011, and 2012, IAPL, Digi, and Happy are private-limited companies with units in Noida, Bhiwadi, and Delhi, respectively. 5Core was set up in 2012 and has a unit in Bhiwadi. FIVE VISION: CRISIL Keeps B+ Debt Ratings in Not Cooperating ------------------------------------------------------------ CRISIL Ratings said the ratings on bank facilities of Five Vision Promoters Private Limited (FVPPL) continue to be CRISIL B+/Stable Issuer Not Cooperating. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term 6.86 CRISIL B+/Stable (Issuer Not Bank Loan Facility Cooperating) Term Loan 28.14 CRISIL B+/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with FVPPL for obtaining information through letters and emails dated September 16, 2022 and November 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of FVPPL, which restricts CRISIL Ratings ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on FVPPL is consistent with Assessing Information Adequacy Risk. Based on the last available information, the ratings on bank facilities of FVPPL continues to be CRISIL B+/Stable Issuer Not Cooperating. FVPPL, incorporated in 2005, is a part of Ghaziabad (Uttar Pradesh)-based SVP group. The company owns and operates a 3 screen PVR multiplex. The multiplex-cum-shopping mall in Ghaziabad has a total developed area of around 175,000 square feet and operates under the name 'Opulent'. The company is promoted by Mr. Vijay Kumar. PARAS STEEL: Ind-Ra Assigns BB LT Issuer Rating, Outlook Stable --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Paras Steel Corporation (PSC) a Long-Term Issuer Rating of 'IND BB'. The Outlook is Stable. The instrument-wise rating actions are: -- INR50 mil. Fund-based working capital limit* assigned with IND BB/Stable/IND A4+ rating; and -- INR300 mil. Non-fund-based working capital limit assigned with IND A4+ rating. *Fund-based limit is a sublimit of non-fund-based limit. Analytical Approach: Ind-Ra has taken a consolidated view of PSC, Vijaykumar & Co ('IND BB'/Stable), and Dalkan Shipbreaking Ltd ('IND BB'/Stable), jointly referred to as the Bhupatrai Chimanlal group, while arriving at the ratings. This is in view of the strong strategic and operational ties between the companies and the common management. Key Rating Drivers The group has a medium scale of operations with consolidated revenues rising to INR1,416 million in FY22 (FY21: INR1,077million, FY20: INR1,121 million), mainly driven by higher sales of scrap, as the company had purchased larger sized ships. The group's revenue highly depends on the type of ships procured by the entities to dismantle, leading to the absence of revenue visibility. Ind-Ra expects the consolidated revenues for FY23 to remain in line with FY22 or see a marginal decline, since the group had just one ship to breakdown during 1HFY23. Liquidity Indicator - Stretched: The fund-based working capital utilization of the group has been 35% for the 12 months ended October 2022. The group utilizes its non-fund-based letter of credit (LC) limits for purchasing ships. The tenure for the same depends upon the size and tonnage of ships and ranges between 180-270 days. An upfront cash margin of 15% is retained at the time of opening an LC. The group parks its surplus in fixed deposits. This ensures gradual a build-up of reserve funds to meet the sizeable LC payment obligations on maturity. As of October 31, 2022, the group had no outstanding LC. The group's working capital cycle improved to 181 days in FY22 (FY21: 222 days, FY20: 448 days), but remained elongated, due to a decrease in the inventory days to 129 (183, 408). The group's payable period was 9 days in FY22 (FY21: 10 days, FY20: 7 days) and receivable days were 60 (50, 46). The group has a total debt repayment of INR6.9 million for the years FY23 and FY24, respectively. The group had cash and bank balances of INR108 million at FYE22, out of which INR105 million is lien marked against LC (FYE21: INR89 million). The ratings factor in the group's modest and volatile EBITDA margins. The EBITDA margins declined to 2.5% in FY22 (FY21: 3.81%) due to lower-than-average realization per unit from the ships purchased for dismantling and higher average metal/scrap prices. The return over capital employed stood at 3.5% in FY22 (FY21: 2.7%). The operating margins of the group fluctuated between 2%-6% over FY19-FY22, reflecting the volatility in the prices of steel scrap as well as the purchase price of ships. The ratings reflect the group's modest credit metrics. The interest coverage (operating EBITDA/gross interest) improved to 1.01x in FY22 (FY21: 0.66x) mainly due to a reduction in interest cost INR36 million (INR41 million), while the net financial leverage (adjusted net debt/operating EBITDA) deteriorated to 20.97x (17.32x) due to an increase in the overall debt to INR854 million (INR799 million). The agency, however, expects the company's credit metrics to remain in the line with FY22 as the group's operating performance may either remain stable or see a marginal decline. The ratings factor in the favorable location of the ship-breaking yard and over 30 years of promoter's experience in the ship breaking industry. The Bhupatrai Chimanlal group's ship-breaking yard is located in the Alang-Sosiya belt in Gujarat, which is one of the world's largest ship-breaking clusters and constitutes almost 90% of India's ship-breaking activity. Standalone Performance: On a standalone basis, PSC's revenue was INR 338 million in FY22 (FY21: INR331 million), while its operating margins were 3% (5%), the interest coverage was 1.31x (0.73x) and net leverage was 7.65x (17.25x). Rating Sensitivities Positive: An improvement in the consolidated scale of operations and liquidity position, leading to the consolidated interest coverage exceeding 1.3x, on a sustained basis, will be positive for the ratings. Negative: Deterioration in the consolidated scale of operations and liquidity position, leading to deterioration of the consolidated credit metrics on a sustained basis, would be negative for the ratings. Company Profile PSC was established in 1998 as a proprietorship concern of Jaysukhlal Shah to carry out ship-recycling activities. The firm operates from the Alang Ship Breaking Yard in Bhavnagar, Gujarat. SARRA MOTORS: CRISIL Keeps B+ Debt Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Sarra Motors Private Limited (SMPL) continue to be CRISIL B+/Stable Issuer Not Cooperating. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4 CRISIL B+/Stable (Issuer Not Cooperating) Proposed Long Term 2.51 CRISIL B+/Stable (Issuer Not Bank Loan Facility Cooperating) Working Capital 1.49 CRISIL B+/Stable (Issuer Not Demand Loan Cooperating) CRISIL Ratings has been consistently following up with SMPL for obtaining information through letters and emails dated August 24, 2022 and November 30, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of SMPL, which restricts CRISIL Ratings ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SMPL is consistent with Assessing Information Adequacy Risk. Based on the last available information, the ratings on bank facilities of SMPL continues to be CRISIL B+/Stable Issuer Not Cooperating. SMPL, set up in 2003, is the sole dealer of Skoda cars in Aurangabad, Maharashtra. It also deals in spare parts and car accessories, and provides car servicing facilities. SITI NETWORKS: IDBI Files Insolvency Petition vs. Company --------------------------------------------------------- The Economic Times reports that IDBI Bank has filed a fresh insolvency petition against the Essel Group promoted cable company Siti Networks Ltd becoming the third lender to drag the debt laden company to court as banks step up pressure on the Zee Group to recover their dues. Siti owes a group of nine lenders a total of INR850 crore, ET discloses. Earlier this year, IndusInd Bank and Housing Development Finance Corp Ltd (HDFC) had filed similar petitions to recover their dues, ET recalls. Axis Bank has the maximum exposure of INR200 crore among lenders. IDBI has a INR115 crore exposure. SITI Network provides cable services at 580 locations and adjoining areas, reaching out to over 11.3 million digital customers. UNIQ SECURITY: CRISIL Withdraws B+ Rating on INR4cr New Loan ------------------------------------------------------------ Due to inadequate information, CRISIL Ratings, in line with SEBI guidelines, had migrated the rating of Uniq Security Solutions Private Limited (formerly known as Uniq Detective and Security Services Private Limited) (Uniq) to 'CRISIL B+/Stable Issuer Not Cooperating'. CRISIL Ratings has withdrawn its rating on bank facilities of Uniq following a request from the company and on receipt of a 'no dues confirmation'. Consequently, CRISIL Ratings is migrating the ratings on bank facilities of Uniq from 'CRISIL B+/Stable Issuer Not Cooperating' to 'CRISIL B+/Stable'. The rating action is in line with CRISIL Ratings' policy on withdrawal of bank loan ratings. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 3 CRISIL B+/Stable (Migrated from CRISIL B+/Stable ISSUER NOT COOPERATING; Rating Withdrawn) Proposed Bank 4 CRISIL B+/Stable (Migrated Guarantee from CRISIL B+/Stable ISSUER NOT COOPERATING; Rating Withdrawn) Proposed Long Term 3 CRISIL B+/Stable (Migrated Bank Loan Facility from CRISIL B+/Stable ISSUER NOT COOPERATING; Rating Withdrawn) Uniq is a leading industrial security, electronic surveillance, facility management and security consulting agency, having its operations in Karnataka, Tamil Nadu, Andhra Pradesh and Telangana. The Company started as a partnership firm in 1995 by Lt KP Nagesh and was converted into a private limited company in 1996. SIS Limited ('CRISIL AA-/ Stable/CRISIL A1+') acquired 100% of shares of Uniq on April 16, 2021. This acquisition provides SIS Limited with a strong position in Bangalore, which is the second largest and fastest-growing market for security solutions in India. VIJAYKUMAR & CO: Ind-Ra Assigns BB Long Term Issuer Rating ---------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Vijaykumar & Co (VAC) a Long-Term Issuer Rating of 'IND BB'. The Outlook is Stable. The instrument-wise rating actions are: -- INR50 mil. Fund-based working capital limit* assigned with IND BB/Stable/IND A4+ rating; and -- INR300 mil. Non-fund-based working capital limit assigned with IND A4+ rating. *Fund-based limit is a sublimit of non-fund-based limit. Analytical Approach: Ind-Ra has taken a consolidated view of VAC, Dalkan Shipbreaking Ltd. ('IND BB'/Stable), and Paras Steel Corporation ('IND BB'/Stable), jointly referred to as the Bhupatrai Chimanlal group, while arriving at the ratings. This is in view of the strong strategic and operational ties between the companies and the common management. Key Rating Drivers The group has a medium scale of operations with consolidated revenues rising to INR1,416 million in FY22 (FY21: INR1,077million, FY20: INR1,121 million), mainly driven by higher sales of scrap, as the company had purchased larger sized ships. The group's revenue highly depends on the type of ships procured by the entities to dismantle, leading to the absence of revenue visibility. Ind-Ra expects the consolidated revenues for FY23 to remain in line with FY22 or see a marginal decline, since the group had just one ship to breakdown during 1HFY23. Liquidity Indicator - Stretched: The fund-based working capital utilization of the group has been 35% for the 12 months ended October 2022. The group utilizes its non-fund-based letter of credit (LC) limits for purchasing ships. The tenure for the same depends upon the size and tonnage of ships and ranges between 180-270 days. An upfront cash margin of 15% is retained at the time of opening an LC. The group parks its surplus in fixed deposits. This ensures gradual a build-up of reserve funds to meet the sizeable LC payment obligations on maturity. As of October 31, 2022, the group had no outstanding LC. The group's working capital cycle improved to 181 days in FY22 (FY21: 222 days, FY20: 448 days), but remained elongated, due to a decrease in the inventory days to 129 (183, 408). The group's payable period was 9 days in FY22 (FY21: 10 days, FY20: 7 days) and receivable days were 60 (50, 46). The group has a total debt repayment of INR6.9 million for the years FY23 and FY24, respectively. The group had cash and bank balances of INR108 million at FYE22, out of which INR105 million is lien marked against LC (FYE21: INR89 million). The ratings factor in the group's modest and volatile EBITDA margins. The EBITDA margins declined to 2.5% in FY22 (FY21: 3.81%) due to lower-than-average realization per unit from the ships purchased for dismantling and higher average metal/scrap prices. The return over capital employed stood at 3.5% in FY22 (FY21: 2.7%). The operating margins of the group fluctuated between 2%-6% over FY19-FY22, reflecting the volatility in the prices of steel scrap as well as the purchase price of ships. The ratings reflect the group's modest credit metrics. The interest coverage (operating EBITDA/gross interest) improved to 1.01x in FY22 (FY21: 0.66x) mainly due to a reduction in interest cost INR36 million (INR41 million), while the net financial leverage (adjusted net debt/operating EBITDA) deteriorated to 20.97x (17.32x) due to an increase in the overall debt to INR854 million (INR799 million). The agency, however, expects the company's credit metrics to remain in the line with FY22 as the group's operating performance may either remain stable or see a marginal decline. The ratings factor in the favorable location of the ship-breaking yard and over 30 years of promoter's experience in the ship breaking industry. The Bhupatrai Chimanlal group's ship-breaking yard is located in the Alang-Sosiya belt in Gujarat, which is one of the world's largest ship-breaking clusters and constitutes almost 90% of India's ship-breaking activity. Standalone Performance: On a standalone basis, VAC's revenue was INR498 million in FY22 (FY21: INR387 million), while its operating margins were 14% (2%), the interest coverage was 1.14x (0.11x) and net leverage was 34.66x (145x). Rating Sensitivities Positive: An improvement in the consolidated scale of operations and liquidity position, leading to the consolidated interest coverage exceeding 1.3x, on a sustained basis, will be positive for the ratings. Negative: Deterioration in the consolidated scale of operations and liquidity position, leading to deterioration of the consolidated credit metrics on a sustained basis, would be negative for the ratings. Company Profile VAC was established in 1994 as a proprietorship concern to carry out ship recycling activities, which was subsequently converted into a partnership firm. The firm operates from the Alang Ship Breaking Yard in Bhavnagar, Gujarat. ================= I N D O N E S I A ================= KAWASAN INDUSTRI: S&P Raises ICR to 'CCC+' Following Debt Exchange ------------------------------------------------------------------ S&P Global Ratings, on Dec. 15, 2022, raised its long-term issuer credit rating on PT Kawasan Industri Jababeka Tbk. (Jababeka) to 'CCC+' from 'SD', and the long-term issue rating on the company's guaranteed 2023 notes to 'CCC+' from 'D'. S&P also assigned its 'CCC+' long-term issue rating to the company's new 2027 notes. The stable outlook reflects S&P's view that Jababeka has sufficient liquidity over the next 12-18 months, despite an erosion of its cash balance. The upgrade reflects Jababeka's substantially reduced refinancing and liquidity risk in the next 12-18 months post the exchange completion. The completed exchange of US$300 million notes due in 2023 extended company's key maturity to 2027. This has substantially improved the developer's liquidity profile, given limited maturities over the next 12 months. S&P estimates Jababeka will have thin but sufficient cash flow and cash balance to cover its operating expenses, interest payments, and obligations over the period. Following the transaction, Jababeka's capital structure will mainly consist of US$186 million new notes due in 2027, about US$34 million old notes due in 2023, and a US$100 million loan from PT Bank Mandiri. S&P expects the company to repay the residual old notes before maturity using internal accruals and the unutilized US$20 million from the Bank Mandiri loan. The sustainability of Jababeka's cash flow and capital structure will be highly dependent on favorable market conditions due to continuous erosion of its cash position. The company will generate limited free operating cash flow (FOCF) over the next 12 months, in our assessment. At the same time, cash balance, excluding joint ventures (JVs), will be eroded by loan amortization and the need to meet cash reserve account requirements under Bank Mandiri's loan agreement. S&P projects Jababeka's cash balance (excluding JVs) will narrow to Indonesian rupiah (IDR) 250 billion-IDR280 billion by the end of 2023, compared with about IDR650 billion as of June 30, 2022. S&P excludes cash at JVs because it is not readily accessible due to the significant shareholdings of minority shareholders. Cash will deteriorate mainly due to: -- Amortization of bank loans of about IDR111 billion in 2023 and about IDR170 billion in 2024. -- About IDR287 billion (US$20 million) cash will be placed into cash reserve accounts under the Bank Mandiri loan agreement in 2023. -- Repayment of the residual 2023 notes of IDR519 billion (US$34 million). S&P forecasts limited FOCF at the company level ranging between IDR220 billion and IDR270 billion per annum over the next two years. This is despite lower hedging costs and lower withholding tax since Jababeka will directly issue the new notes. In addition, S&P assumed the company will incur only maintenance capex over this period. The FOCF is after interest and hedging expenses, which we estimate at IDR370 billion-IDR390 billion per annum over the same period. Furthermore, a higher loan amortization of US$20 million and US$10 million step-up in cash reserve account from the start of 2025 could further erode Jababeka's liquidity and financial flexibility. Jababeka's operating and financial metrics are on track despite the cash balance erosion. With easing border restrictions and resumption of international travel, industrial land sales in Indonesia to both local and international buyers will likely improve. Industrial land sales are the key driver for Jababeka's marketing sales, accounting for 70%-75% of the total sales forecast for 2022. During the first half of 2022, the company achieved IDR848 billion marketing sales, equivalent to a 61% increase year on year. Jababeka's EBITDA during 2022 and 2023 will benefit from the sales recovery in 2021 and 2022, given development EBITDA is supported by a backlog of sales. S&P said, "At the consolidated level, we forecast Jababeka's ratio of EBITDA over interest to be about 1.7x in 2022, before improving to 1.8x-2.0x in 2023 in our base case, owing to higher EBITDA. However, Jababeka's leverage ratio remains high with a debt-to-EBITDA ratio of 5.9x-6.1x following the exchange offer. This is based on our assumption that marketing sales will increase to IDR1.6 trillion-IDR1.7 trillion in 2022 and IDR1.8 trillion-IDR1.9 trillion in 2023, compared with IDR1.4 trillion in 2021. This level of marketing sales is similar to pre-pandemic levels. "The stable outlook on Jababeka reflects our view that the company has no imminent liquidity pressure. However, we anticipate a cash flow deficit (measured as FOCF after debt amortization and cash reserve requirement) for the company over the next 12-18 months. "We could lower the ratings on Jababeka if the company's cash flow deficit deepens such that a default scenario become more likely. This could occur if the cash proceeds from marketing sales are 15%-20% lower than our base case. "We could raise the ratings on Jababeka if its cash flow deficit trends toward breakeven at the company level, excluding JVs. This would indicate a more sustainable capital structure, and could be achieved by marketing sales of at least IDR2.4 trillion annually with more than 70% of sales being made at the company level." ESG credit indicators: E-3, S-2, G-4 S&P said, "Governance factors are a negative consideration in our credit rating analysis of Jababeka. The company's shareholder dispute in 2019 highlighted some weaknesses in governance structure. While the lawsuits have been resolved, lack of sufficient shareholder attendance at annual general meetings continues to delay key approvals, including the company's attempt in 2021 to obtain shareholders' approval for a bond guarantee. We believe these issues have affected creditors' confidence and the company's refinancing of its U.S. dollar notes in 2023. "Environmental risk factors are a moderately negative consideration in our credit rating analysis of Jababeka. Property development and land sales accounted for 40%-50% of the company's revenue on average over the past three years. Jababeka's exposure to industrial estates poses some pollution risks, but we believe the company's efforts to treat wastewater and limit air pollution from its industrial estates temper the risks." Jababeka also owns and operates a gas-fired power plant (29% of revenue on average). While electricity generation exposes Jababeka to longer-term energy transition risks from fossil fuels, the 20-year off-take agreement with state-owned electricity distributor, PT Perusahaan Listrik Negara (Persero), also adds stability to cash flow. ========= J A P A N ========= FTX TRADING: Seeks Approval to Sell Japan Unit ---------------------------------------------- Jiji Press reports that failed U.S. crypto exchange FTX Trading Ltd. said on Dec. 16 that it has sought court permission for the start of procedures to sell four businesses, including its Japan unit. According to the report, the bidding for FTX Japan K.K. is expected to take place in March next year if approved by the federal bankruptcy court in Delaware. The parent firm aims to secure funds to repay creditors. The four businesses have "solvent balance sheets, independent management and valuable franchises," FTX said, the report relays. Jiji Press relates that FTX Japan is subject to business suspension and business improvement orders. "The longer operations are suspended, the greater the risk to the value of the assets and the risk of a permanent revocation of licenses," the parent company said. Customers of FTX Japan have remained unable to withdraw their assets, the report notes. About FTX Group FTX is the world's second-largest cryptocurrency firm. FTX is a cryptocurrency exchange built by traders, for traders. FTX offers innovative products including industry-first derivatives, options, volatility products and leveraged tokens. Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that FTX paused customer withdrawals after it was hit with roughly $5 billion worth of withdrawal requests. Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell itself to its giant rival Binance, but Binance walked away from the deal the next day amid reports on FTX regarding mishandled customer funds and alleged US agency investigations. At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step aside, and restructuring vet John J. Ray III was quickly named new CEO. FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc. (d/b/a FTX US), Alameda Research Ltd. and certain affiliated companies then commenced Chapter 11 proceedings (Bankr. D. Del. Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022. Additional entities sought Chapter 11 protection on Nov. 14, 2022. FTX Trading and its affiliates each listed $10 billion to $50 million in assets and liabilities, making FTX the biggest bankruptcy filer in the US this year. According to Reuters, SBF shared a document with investors on Nov. 10 showing FTX had $13.86 billion in liabilities and $14.6 billion in assets. However, only $900 million of those assets were liquid, leading to the cash crunch that ended with the company filing for bankruptcy. The Hon. John T. Dorsey is the case judge. Andrew G. Dietderich, James L. Bromley, Brian D. Glueckstein and Alexa J. Kranzley at Sullivan & Cromwell LLP in New York, serve as the Debtors' counsel. Adam G. Landis, Kimberly A. Brown and Matthew R. Pierce at LANDIS RATH & COBB LLP in Wilmington serve as local bankruptcy counsel to FTX Group. Alvarez & Marsal North America, LLC, is the Debtors' financial advisor. Kroll is the claims agent, maintaining the page https://cases.ra.kroll.com/FTX/Home-Index Lawyers at Paul Weiss represented SBF but later renounced representing the entrepreneur due to a conflict of interest. TOSHIBA CORP: Aims to Reach Deal With Potential Partners Soon ------------------------------------------------------------- Reuters reports that Toshiba Corp., which is in talks about a buyout, said in a letter to shareholders on Dec. 16 that it was aiming to reach a conclusion with potential partners as soon as possible. Reuters relates that the letter from Akihiro Watanabe, chairperson of the board, and Jerry Black, chairperson of Toshiba's special committee looking at strategic alternatives, added there was no assurance that a deal would be reached. Toshiba is "planning to receive binding and bona-fide proposal(s) and shall be making strong efforts to arrive at a conclusion as early as possible after necessary negotiations," the letter said. Sources have told Reuters that the company's preferred bidder, Japan Industrial Partners (JIP), was moving closer to securing financing from banks for a buyout. A deal is expected to value the industrial conglomerate at around JPY2.2 trillion ($16 billion). The Nikkei newspaper reported on Dec. 15 that JIP was likely to receive JPY1.2 trillion in loans and that the core banking units of Sumitomo Mitsui Financial Group Inc. and Mizuho Financial Group Inc. would each lend JPY450 billion, Reuters relays. Financial services group Orix Corp., chipmaker Rohm Co. and Japan Post Bank Co. are among Japanese companies likely to join JIP in its bid, sources have previously said. About Toshiba Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/-- manufactures and markets electrical and electronic products. The Company's products include digital products such as PCs and televisions, NAND flash memories, and system LSIs (large-scale integrated), as well as social infrastructures such as power generators, medical equipment, and home appliances. As reported in the Troubled Company Reporter-Asia Pacific, S&P Global Ratings, in March 2022, affirmed its 'BB+' long-term issuer credit rating and 'B' short-term issuer and issue credit ratings on Toshiba Corp. S&P removed the long-term issuer credit rating from CreditWatch with negative implications, on which S&P placed it on Nov. 16, 2021. The outlook is negative. =============== M O N G O L I A =============== MONGOLIA: S&P Withdraws 'B' LT Rating on US$5BB Medium-Term Notes ----------------------------------------------------------------- S&P Global Ratings withdrew its 'B' long-term credit rating on the US$5 billion global medium-term note program issued by the government of Mongolia. The rating was withdrawn at the issuer's request. S&P's sovereign credit ratings on Mongolia (B/Stable/B) remain in place. MONGOLIAN MINING: S&P Upgrades LT ICR to 'CCC', Outlook Negative ---------------------------------------------------------------- S&P Global Ratings, on Dec. 15, 2022, raised its long-term issuer credit rating on Mongolian Mining Corp. (MMC) to 'CCC' from 'SD'. S&P also raised the long-term issue rating on the company's guaranteed senior unsecured notes to 'CCC' from 'D'. S&P said, "The negative outlook on the issuer credit rating reflects our view that MMC's nonrepayment risk is high. The company could undertake below-par redemptions or distressed debt exchanges over the next 12 months, which we would view as tantamount to default. "We raised the rating on MMC following the company's completion of a cash tender offer for its senior unsecured notes due April 2024. We view the transaction as a distressed exchange. MMC's non-repayment risk over the next 12-15 months remains high due to a material liquidity deficit." The company's capital structure is unsustainable despite the exchange offer and an improvement in operations. MMC's cash on hand and cash flow from operations could still be insufficient to cover its notes maturity by April 2024. This is after factoring in improving operating conditions, with sales volume of hard coking coal likely to reach 5.3 million-5.7 million tons (mt) in 2023, compared with our estimate of 3.3-3.5 mt in 2022. The recovery in sales volume will be underpinned by S&P's expectation that the truck throughput level at the Gashuunsukhait-Ganqimaodu border between China and Mongolia could stay close to the current level under China's shift from zero-COVID toward a reopening of the economy in 2023. Throughput increased to 765 trucks per day in November 2022 and averaged at 812 trucks per day in the first 10 days of December. This was a strong recovery from an average of 230 trucks per day in the first half of the year, and is comparable to the pre-COVID level of about 750 trucks per day. MMC will likely need to rely on refinancing or below-par redemption to repay its outstanding U.S. dollar notes due to the material liquidity deficit it might face at the bond maturity. The company's debt level remains high with US$376 million of 2024 notes outstanding after completion of the tender offer. MMC bought back US$42.6 million of the principal amount of the existing notes at a clearing price of US$630 for each US$1,000 principal amount. The repurchased amount represents approximately 9.68% of the US$440 million total outstanding principal amount. The acceptance rate was much lower than MMC's proposed plan of utilizing a maximum of US$100 million for repurchase (equivalent to about US$159 million of face value assuming the same clearing price). The refinancing risk on the outstanding 2024 notes remains high because the financing environment for high-yield issuers continues to be tough, especially for coal producers. MMC may continue to carry out discounted price buybacks in the secondary market or carry out below-par exchanges over the next 12-15 months to prevent a conventional default. S&P will likely view a below-par redemption as a distressed exchange and tantamount to default, based on the company's weak liquidity. S&P said, "The negative rating outlook reflects our view that MMC's default risk, including for its U.S. dollar-denominated notes, is high. The company could undertake below-par redemptions or distressed debt exchanges over the next 12 months, which we would view as tantamount to default." S&P could lower its rating on MMC if: -- The company announces a debt exchange or debt restructuring; -- It carries out distressed secondary market buybacks; or -- S&P anticipates a payment default in the next six months. S&P said, "We could raise the rating or revise the outlook to stable if we have greater visibility on MMC's refinancing plan or if we no longer view a distressed exchange or debt restructuring as likely over the next 12 months. This could happen if the company's operating performance improves substantially in term of sales volume and average selling price (ASP)." ESG credit indicators: E-4; S-3; G-4 ===================== N E W Z E A L A N D ===================== ARGO BEACH: Creditors' Proofs of Debt Due on Feb. 7 --------------------------------------------------- Creditors of Argo Beach Co-Working Limited and Argo Co-Working Limited are required to file their proofs of debt by Feb. 7, 2023, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Dec. 13, 2022. The company's liquidators are: Lynda Smart Geoff Brown Rodgers Reidy PO Box 39090 Harewood Christchurch 8545 MW LESLIE: Creditors' Proofs of Debt Due on Jan. 15 --------------------------------------------------- Creditors of MW Leslie Harvesting Limited are required to file their proofs of debt by Jan. 15, 2023, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Dec. 10, 2022. The company's liquidators are: Brenton Hunt PO Box 13400 City East Christchurch 8141 NZ SMOKEFREE: Creditors' Proofs of Debt Due on Feb. 3 ----------------------------------------------------- Creditors of NZ Smokefree Tomorrow Limited are required to file their proofs of debt by Feb. 3, 2023, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Dec. 13, 2023. The company's liquidators are: Rachel Mason-Thomas Jeffrey Philip Meltzer Chartered Accountants PO Box 6302 Victoria Street West Auckland 1141 RESIMAC PRIME 2021-1: S&P Affirms BB(sf) Rating on Cl. E Notes -------------------------------------------------------------- S&P Global Ratings affirmed its ratings on six classes of notes issued by The New Zealand Guardian Trust Co. Ltd. as trustee for RESIMAC Prime Trust - RESIMAC Prime Trust Series 2021-1. The transaction continues to perform well. As of Oct. 31, 2022, the Series 2021-1 pool has a current weighted-average loan-to-value ratio of 69.1%, weighted-average seasoning of 32.9 months, and pool factor of about 63.2%. Approximately 1.9% of the pool is between 31 and 60 days in arrears and none are more than 60 days in arrears. There have been no losses to date. S&P believes that the credit support provided to each class of notes is sufficient to withstand the stresses we apply at each respective rating level. Credit support is provided via subordination from junior notes. In addition, lenders' mortgage insurance provides credit support for a small portion -- approximately 1.5% -- of the loan portfolio. A key risk for the portfolio is the uncertainty from the near-term economic backdrop in New Zealand. The New Zealand economy is showing signs of cooling, and S&P expects there is still a lag to the effects of higher interest rates. While there has been a buildup of credit support as a percentage of the outstanding notes, S&P believes this buildup should be able to withstand some volatility in arrears. S&P expects that the various mechanisms to support liquidity within the transaction, including principal draws and an amortizing liquidity facility, are sufficient to ensure timely payment of interest. Ratings Affirmed RESIMAC Prime Trust - RESIMAC Prime Trust Series 2021-1 Class A1: AAA (sf) Class A2: AAA (sf) Class B: AA (sf) Class C: A (sf) Class D: BBB (sf) Class E: BB (sf) WHITE INTERNATIONAL: Creditors' Proofs of Debt Due on Jan. 20 ------------------------------------------------------------- Creditors of White International Forwarding Limited are required to file their proofs of debt by Jan. 20, 2023, to be included in the company's dividend distribution. The High Court at Auckland appointed Jared Waiata Booth and Tony Leonard Maginness of Baker Tilly Staples Rodway Auckland as liquidators on Dec. 9, 2022. WHITELABELNZ LIMITED: First Creditors' Meeting Set for Dec. 13 -------------------------------------------------------------- A first meeting of the creditors in the proceedings of WhitelabelNZ Limited will be held on Jan. 4, 2023, at 11:00 a.m. via video conference. Bryan Edward Williams of BWA Insolvency was appointed as administrator of the company on Dec. 14, 2022. The administrator may be reached at: Bryan Edward Williams BWA Insolvency Limited PO Box 609 Kumeu 0841 ================= S I N G A P O R E ================= AIMS IMMIGRATION: Court to Hear Wind-Up Petition on Dec. 30 ----------------------------------------------------------- A petition to wind up the operations of Aims Immigration Specialist Pte Ltd will be heard before the High Court of Singapore on Dec. 30, 2022, at 10:00 a.m. RHB Bank Berhad filed the petition against the company on Dec. 8, 2022. The Petitioner's solicitors are: Rajah & Tann Singapore LLP 9 Straits View #06-07 Marina One West Tower Singapore 018937 DELTA LINK: Court to Hear Wind-Up Petition on Jan. 6 ---------------------------------------------------- A petition to wind up the operations of Delta Link Pte Ltd will be heard before the High Court of Singapore on Jan. 6, 2023, at 10:00 a.m. Maybank Singapore Limited filed the petition against the company on Dec. 13, 2022. The Petitioner's solicitors are: M/s Advent Law Corporation 111 North Bridge Road #25-03 Peninsula Plaza Singapore 179098 IBC CAPITAL: Moody's Affirms 'B3' CFR & Alters Outlook to Stable ---------------------------------------------------------------- Moody's Investors Service has changed the rating outlook for IBC Capital Limited (Goodpack) to stable from negative. At the same time, Moody's has affirmed Goodpack's B3 corporate family rating, the B3 senior secured rating of the first lien term loan due September 2023 and the Caa1 senior secured rating of the second lien term loan due September 2024. The rated loans are issued by Goodpack as the parent borrower and IBC Capital US LLC as the US co-borrower, and substantially guaranteed by all of Goodpack's subsidiaries. "The change in Goodpack's rating outlook to stable reflects the improvement in the company's liquidity and debt maturity profile following the signing of its new senior loan facilities and the mezzanine debt facility at its parent, IBC Capital I Limited. Goodpack will use proceeds from the new facilities to repay its existing debts," says Hui Ting Sim, a Moody's Assistant Vice President and Lead Analyst for Goodpack. Utilisation of the new facilities is subject to fulfilment of certain conditions precedent by Goodpack and its parent, which include documentation and know-your-customer requirements. "The rating affirmation reflects Moody's expectation that Goodpack will grow its revenue following its investment ramp-up in new containers, as well as maintain its high profit margins," adds Sim. RATINGS RATIONALE On December 5, Goodpack and its parent signed a senior loan facility at Goodpack and a debt facility at its parent. The amounts available under these facilities are sufficient to refinance Goodpack's existing term loans and revolving credit facilities that will mature over the next two years. Proceeds from the mezzanine debt facility at IBC Capital I Limited will be injected into Goodpack as equity to repay the latter's existing debts. Moody's expects Goodpack's liquidity to be very good over the next 18 months after the drawdown of the new facilities. The new facilities entail low debt amortization amounts over the initial two years. Pro forma for the new facilities, Moody's forecasts Goodpack's leverage — as measured by adjusted debt/EBITDA — will be 5.0x-5.5x over the next 12-18 months. Goodpack's leverage will be elevated at 7.0x-7.5x after including the mezzanine debt at its parent that will be drawn down to refinance existing debts. Moody's estimates that Goodpack's EBITDA margin will be around 45%-46% over the next 12-18 months. Goodpack has recently seen higher success rates in recovering freight and trucking costs from customers via the introduction of surcharges. This has led to an improvement in EBITDA margins from the past two years, which weakened during the pandemic because of lengthening supply chains and high freight costs. However, slower economic growth over the next 12 months could dampen further improvement in Goodpack's profit margins, as weaker consumer sentiment may affect demand for containers as transportation volumes decline and the company's customers minimize inventory levels. Moody's expects Goodpack's revenue to grow 3%- 5% year on year to around $300 million over the next 12 months. Goodpack's revenue will continue to increase over the next two years given the company's investment in new containers. According to Goodpack's latest guidance, cash outflows from capital spending will increase 84% year on year to $132.9 million over the fiscal year ending June 30, 2023. Consequently, Moody's expects Goodpack's free cash flow to remain negative over the next 12-18 months, and the company will have to fund part of its capital spending via drawdowns of its new senior facilities. Goodpack is also acutely exposed to the risk of rising interest rates given its highly leveraged capital structure. Majority of its new debts will be tied to floating interest rates. An increase in interest rates by one per cent will lift its interest expense to about $8.5 million at Goodpack based on its reported interest-bearing loans and borrowings of around $852 million as of September 30, 2022. The incremental interest cost is material to Goodpack and will reduce its cash flow from operations (CFO). During the twelve months ended September 30, 2022, the company generated around $60 million of CFO. Moody's understands that Goodpack is exploring interest rate swaps or hedges to mitigate against interest rate risks. The new debt facilities will help to stem cash outflows from interest costs at Goodpack as interest at its parent's mezzanine debt facility is payment-in-kind (PIK). Terms at the new senior debt facility generally restrict Goodpack from paying dividends to its parent unless the company reduces its leverage to a certain threshold. Moody's estimates that Goodpack's adjusted EBITA to interest will be around 1.0x-1.5x over the next 12-18 months. Goodpack's B3 CFR reflects its (1) high customer, channel and supplier concentration, which exposes its business to headwinds in the automotive industry; (2) aggressive financial policies, following its acquisition by Kohlberg Kravis Roberts & Co L.P. (KKR); and (3) small scale when compared with rated peers'. These factors are balanced against the company's leading position in the niche logistics market for rubber and synthetic rubber and high EBITDA margins. ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS Goodpack's credit exposure to governance risks is highly negative, reflecting its concentrated ownership by KKR, a fully non-independent board of directors, and the company's aggressive financial policy and tolerance for high leverage. Goodpack is a private company with no publicly stated policies or stock exchange filing requirements. However, the company hosts quarterly earnings calls and provides quarterly financial statements to its investors. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's would consider an upgrade of Goodpack's ratings if the company is able to maintain its strong profit margins and improve its capital structure. Quantitative metrics indicative of an upgrade include adjusted debt/EBITDA below 6.5x and adjusted EBITA/interest above 1.5x on a sustained basis. Moody's could downgrade Goodpack's rating if the company's earnings and liquidity are weaker than the agency's expectations. Quantitative metrics indicative of a downgrade include adjusted debt/EBITDA above 7.5x, EBITA/interest below 1.0x as well as cash and availability under committed revolving facilities below $40 million. RATING METHODOLOGY The principal methodology used in these ratings was Business and Consumer Services published in November 2021. PROFILE IBC Capital Limited (Goodpack) was acquired by KKR in September 2014 for $1.4 billion and is an indirect wholly-owned subsidiary of a fund affiliated and advised by KKR. Headquartered in Singapore, Goodpack owns a fleet of more than 4 million intermediate bulk containers used for the packaging, transportation and storage of cargo; primarily natural rubber and synthetic rubber. MAPLE BUILDERS: Court to Hear Wind-Up Petition on Dec. 30 --------------------------------------------------------- A petition to wind up the operations of Maple Builders Pte Ltd will be heard before the High Court of Singapore on Dec. 30, 2022, at 10:00 a.m. The Comptroller Of Income Tax and The Comptroller of Goods and Services Tax filed the petition against the company on Dec. 7, 2022. The Petitioner's solicitors are: Infinitus Law Corporation 77 Robinson Road #16-00, Robinson 77 Singapore 068896 PRISMINVEST PARTNERS: Creditors' Proofs of Debt Due on Jan. 16 -------------------------------------------------------------- Creditors of Prisminvest Partners Pte. Ltd. are required to file their proofs of debt by Jan. 16, 2023, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Dec. 8, 2022. The company's liquidator is: Lim Seow Hwa 12 Tannery Road #10-01 HB Centre 1 Singapore 347722 WIRECARD ASIA: Creditors' Proofs of Debt Due on Jan. 16 ------------------------------------------------------- Creditors of Wirecard Asia Holding Pte. Ltd. are required to file their proofs of debt by Jan. 16, 2023, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Dec. 9, 2022. The company's liquidator is: Yit Chee Wah c/o FTI Consulting (Singapore) One Raffles Quay #27-10 South Tower Singapore 048583 ===================== S O U T H K O R E A ===================== DAEWOO SHIPBUILDING: Hanwha Group's Acquisition Deal Completed -------------------------------------------------------------- The Korea Times reports that Hanwha Group's acquisition of Daewoo Shipbuilding & Marine Engineering (DSME) was completed, Dec. 16, after the government approved a motion for state-run Korea Development Bank (KDB) to sell part of its 55.68 percent stake in the debt-ridden shipbuilder to the country's seventh-largest conglomerate. According to the report, the shipbuilder's CEO Park Du-seon is highly likely to be replaced, largely because the conglomerate needs to remove any liabilities associated with the figure a close acquaintance of former President Moon Jae-in. Whether Hanwha will install one of its affiliate heads to the shipbuilder's top management spot remains to be seen, in what market watchers said is almost a foregone conclusion, the report says. The Korea Times notes that the prospect is backed by the 5,000 unionized workers of DSME who have shown no opposition, as illustrated by the uninterrupted and successful due diligence at the shipbuilder's shipyard in Okpo, Geoje Island late last month. Their collective acceptance of the acquisition followed Hanwha's pledge to keep communication channels open to limit layoffs and to discuss other labor demands. Whether and how fast the performance of DSME turns around will determine the success of the acquisition which was 14 years in the making, the report states. The firm's debt ratio stood at 1,291 percent as of the third quarter of this year. Operating losses in the first nine months of this year came KRWto 1.19 trillion ($909 million), the report discloses. Hanwha will be able to hold a controlling stake of 49.3 percent at a takeover price of KRW2 trillion, whereas stakes held by the state-run lender will decline to 28 percent. The Korea Times says the Fair Trade Commission (FTC) will approve the acquisition, a process that will be finalized when the go-ahead is issued by the relevant eight foreign antitrust authorities. The KRW2 trillion will be drawn from six Hanwha affiliates, including KRW1 trillion from Hanwha Aerospace, formerly Hanwha Techwin. A total of KRW500 billion will come from Hanwha Systems, an aerospace and defense affiliate. Hanwha Impact Partners, a green energy tech firm, will pay KRW400 billion, and three subsidiaries of Hanwha Energy will pay a combined KRW100 billion, the report discloses. About Daewoo Shipbuilding Headquartered in Seoul, South Korea, Daewoo Shipbuilding & Marine Engineering Co. -- http://www.dsme.co.kr/-- is engaged in building ships and offshore structures. Its product portfolio includes commercial ships, such as liquefied natural gas (LNG) carriers, oil tankers, containerships, liquefied petroleum gas (LPG) carriers, pure car carriers; offshore structures, such as FPSO vessels, drilling rigs, drillships and fixed platforms, and naval vessels, including submarines, destroyers, rescue ships and patrol boats. The state-backed Korea Development Bank first bailed out the shipbuilder in 2000, after the larger Daewoo Group collapsed in the wake of the Asian financial crisis, according Nikkei Asia. Since then, over KRW7 trillion ($5.2 billion at current rates) of state aid has been injected into Daewoo. KDB now holds a 55.7% stake in the company. The Nikkei related that KDB for years has sought a domestic buyer for the embattled shipbuilder, with every attempt thwarted by market downturns and antitrust concerns. The latest deal, reached in March 2019 with Hyundai Heavy, was blocked by the European Union in January 2022 on the grounds that the combined company would control too much of the market for liquefied natural gas carriers. Daewoo's finances have worsened in the meantime, the Nikkei said. The company booked a KRW99.5 billion operating loss for the April-June quarter. Its capital ratio, an indicator for financial soundness, plunged to 13% as of the end of June from 37% at the end of 2020. The company has struggled to pay for some materials, stoking concerns over its ability to remain in business. =============== T H A I L A N D =============== DAOL SECURITIES: Fitch Gives BB(tha) Rating on THB300MM Debentures ------------------------------------------------------------------ Fitch Ratings (Thailand) has assigned a National Long-Term Rating of 'BB(tha)' to DAOL SECURITIES (THAILAND) PUBLIC COMPANY LIMITED's (DAOLSEC, BB+(tha)/Rating Watch Negative (RWN)/B(tha)) upcoming issue of up to THB300 million in subordinated unsecured debentures. The RWN on the subordinated debentures is consistent with the RWN of DAOLSEC's National Long-Term Rating. The debentures have a maturity of one year. The firm plans to use the proceeds to finance its working capital. KEY RATING DRIVERS Fitch rates DAOLSEC's subordinated debentures one notch below the anchor rating, which is the 'BB+(tha)' National Long-Term Rating, to reflect the subordinated debentures' higher loss-severity risk relative to senior unsecured instruments, as per Fitch's Corporate Hybrids Treatment and Notching Criteria. The notching also incorporates the debentures' subordinated status, as subordinated noteholders rank after senior creditors in priority of claims. There is no additional notching for non-performance risks due to the notes' lack of going-concern loss-absorption and equity-conversion features. Fitch has not assigned equity credit to the issue, as the instrument is not designed to be a permanent part of the company's capital structure. For further detail on DAOLSEC's key rating drivers and rating sensitivities, please see its latest commentary titled "Fitch Places DAOL SECURITIES (THAILAND) on Rating Watch Negative", dated 25 November 2022. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: The rating of DAOLSEC's subordinated debentures will be downgraded if the National Long-Term Rating is downgraded. Factors that could, individually or collectively, lead to positive rating action/upgrade: A removal of the RWN on the National Rating would result in similar action on the rating of the subordinated debentures. The rating of DAOLSEC's subordinated debentures will be upgraded if the National Long-Term Rating is upgraded. However, there is limited upside potential for the National Long-Term Rating, given the RWN. Entity/Debt Rating ----------- ------ DAOL SECURITIES (THAILAND) PUBLIC COMPANY LIMITED subordinated Natl LT BB(tha) New Rating ********* 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. 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