/raid1/www/Hosts/bankrupt/TCRAP_Public/230106.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
Friday, January 6, 2023, Vol. 26, No. 6
Headlines
A U S T R A L I A
DELUXE CAR: Commences Wind-Up Proceedings
DGI DEBT: May Have Traded While Insolvent, Liquidator Says
HALLBUILD PTY: Michael Caspaney Appointed as Liquidator
MAINLINE SERVICES: Second Creditors' Meeting Set for Jan. 13
C H I N A
GREENLAND HOLDINGS: To Sell Major Stake in Unit for USD91 Million
SUNAC CHINA: Bondholders Agree to US$2.3BB Debt Rollover Plan
TIMES CHINA: Moody's Lowers CFR to Ca & Senior Unsecured Debt to C
I N D I A
ABHILASH CHEMICALS: Ind-Ra Moves BB+ Rating in Non-Cooperating
AILSINGHANI TRANSPORT: Ind-Ra Moves BB- Rating in Non-Cooperating
AKASH STEEL: CARE Keeps B+ Debt Rating in Not Cooperating
AKRITI SALES: Ind-Ra Assigns BB+ LT Issuer Rating, Outlook Stable
AMARTARA PRIVATE: CARE Withdraws B+/A4 Debt Ratings
AMODA IRON: CARE Keeps D Debt Ratings in Not Cooperating
ANAND MOTOR: Ind-Ra Moves BB Rating in Non-Cooperating
ANNAPURNA TRADERS: CARE Keeps C Debt Rating in Not Cooperating
ASHOK TIMBER: CARE Keeps B- Debt Ratings in Not Cooperating
BEWAKOOF BRANDS: CARE Lowers Rating on INR19.66cr Loan to B
BL AGRO: Ind-Ra Keeps BB Long Term Issuer Rating in Non-Cooperating
BULLAND BUILDTECH: CARE Keeps D Debt Rating in Not Cooperating
ESSPAL INTERNATIONAL: Ind-Ra Moves BB+ Rating in Non-Cooperating
EXCELL AUTOVISTA: Ind-Ra Assigns 'BB+' Rating, Outlook Stable
FUJIN WIND: CARE Keeps D Debt Rating in Not Cooperating Category
FURNACE FABRICA: Ind-Ra Moves BB- Rating in Non-Cooperating
HOTEL SWOSTI: Ind-Ra Moves BB Issuer Rating in Non-Cooperating
HUBLI COTTON: CARE Keeps D Debt Rating in Not Cooperating
K. V. R CONSTRUCTIONS: CARE Lowers Rating on INR25cr LT Loan to B-
KAFILA HOSPITALITY: Ind-Ra Moves B+ Rating in Non-Cooperating
KANAK GINNING: CARE Keeps C Debt Rating in Not Cooperating
KANTHARAJ H M: CARE Lowers Rating on INR15cr LT Loan to B-
KERALA STATE: Ind-Ra Affirms 'B-' Rating, Outlook Stable
KOPALLE PHARMA: CARE Keeps D Debt Ratings in Not Cooperating
KRISHNAMOHAN ENERGY: Ind-Ra Moves B+ Rating in Non-Cooperating
L. N. FIELDS: CARE Keeps B- Debt Rating in Not Cooperating
LANGTA BABA: Ind-Ra Moves BB+ Rating in Non-Cooperating
LONE FURROW: Ind-Ra Hikes NonConvertible Debts Rating to BB+
MAHAPRABHU RAM: CARE Keeps D Debt Ratings in Not Cooperating
MAHESHWAR HYDEL: CARE Keeps D Debt Rating in Not Cooperating
MAHESTALA AGRO: CARE Keeps B+ Debt Rating in Not Cooperating
MANJEERA CONSTRUCTIONS: Ind-Ra Hikes Long Term Issuer Rating to B-
MEENAKSHI ENERGY: Ind-Ra Affirms 'D' Bank Loan Rating
METTU CHINNA: CARE Keeps D Debt Ratings in Not Cooperating
MOTIL DEVI: CARE Keeps B- Debt Rating in Not Cooperating
MURALIKRISHNA CONSTRUCTION: CARE Keeps B- Rating in Not Cooperating
N.V. KHAROTE: CARE Keeps D Debt Ratings in Not Cooperating
PACIFIC JUTE: Ind-Ra Moves BB+ Rating in Non-Cooperating
PARAMOUNT BLANKETS: CARE Keeps D Debt Ratings in Not Cooperating
PAS TRADING: Ind-Ra Assigns B- LT Issuer Rating, Outlook Stable
PRATIBHA SYNTHEX: Ind-Ra Keeps BB Issuer Rating in Non-Cooperating
PUSHPAVATHI AGRO-TECH: CARE Cuts Rating on INR9cr LT Loan to B-
RAM COTTEX: Ind-Ra Moves B+ Rating in Non-Cooperating
RAMANI ICECREAM: CARE Lowers Rating on INR50.01cr LT Loan to D
RELIANCE CAPITAL: NCLT Stays Resolution Process on Torrent's Plea
RR COTTONS: Ind-Ra Moves 'B' Rating in Non-Cooperating
RRR CONSTRUCTIONS: Ind-Ra Moves BB Rating in Non-Cooperating
SAI ENGICON: CARE Lowers Rating on INR5.0cr LT Loan to B
SHAKSHI COIR: CARE Keeps B+ Debt Rating in Not Cooperating
SIDDHARTHA INNOPAK: Ind-Ra Assigns BB- Long Term Issuer Rating
T G R PROJECTS: CARE Keeps B- Debt Rating in Not Cooperating
TAJSHREE CARS: CARE Keeps D Debt Rating in Not Cooperating
TEJAS ISPAT: CARE Keeps B- Debt Rating in Not Cooperating
TELAWNE POWER: Ind-Ra Moves BB+ Rating in Non-Cooperating
TRIVENI WIRES: Ind-Ra Moves BB+ Rating in Non-Cooperating
TRIVIKRAMA MEDICAL: Ind-Ra Moves BB+ Rating in Non-Cooperating
TRN ENERGY: Ind-Ra Moves 'D' Debt Rating in Non-Cooperating
ULTRA DENIM: Ind-Ra Lowers LongTerm Issuer Rating to BB
VASWANI INDUSTRIES: Ind-Ra Keeps B+ Rating in Non-Cooperating
VENKATESWARA AND COMPANY: Ind-Ra Moves B- Rating in NonCooperating
VGP MARINE: Ind-Ra Moves 'BB' Loan Rating to Non-Cooperating
VIKAS SILKS: Ind-Ra Moves B+ Rating in Non-Cooperating
VRG INDUSTRIES: Ind-Ra Moves 'B+' Rating in Non-Cooperating
ZEE ENTERTAINMENT: IndusInd's Insolvency Petition Not Maintainable
S I N G A P O R E
ALPRE INSURANCE: Creditors' Proofs of Debt Due on Feb. 6
AVAX ASIA: Creditors' Proofs of Debt Due on Feb. 6
NEMRE INSURANCE: Creditors' Proofs of Debt Due on Feb. 6
RYBURN INT'L: Creditors' Proofs of Debt Due on Feb. 5
SIRE INSURANCE: Creditors' Proofs of Debt Due on Feb. 6
TANTRAMAR PTE: Creditors' Proofs of Debt Due on Feb. 5
UGLYFOOD: Closes Down Shop After 7 Years
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A U S T R A L I A
=================
DELUXE CAR: Commences Wind-Up Proceedings
-----------------------------------------
Members of Deluxe Car Detailers Pty Ltd, trading as "deluxcar" and
"Wurtzite", on Jan. 4, 2023, passed a resolution to voluntarily
wind up the company's operations.
The company's liquidator is:
Clifford John Sanderson
Dissolve Pty Ltd
Level 8, 80 Clarence St
Sydney, NSW 2000
DGI DEBT: May Have Traded While Insolvent, Liquidator Says
----------------------------------------------------------
Max Mason at Australian Financial Review reports that the
liquidator for collapsed companies run by ASIC-banned property and
debt spruiker Dominique Grubisa believes the businesses may have
traded while insolvent, with preliminary investigations suggesting
the company held no assets and owed money to the tax office and
other related parties.
Ms. Grubisa, a Sydney-based lawyer and chief executive of DG
Institute, describes herself as a property educator and asset
protection specialist. She provided training courses covering asset
protection and wealth management.
The liquidator reports, lodged with the Australian Securities and
Investment Commission, are the latest in a stream of bad news for
Ms. Grubisa and her business activities, which have been
extensively reported by The Australian Financial Review.
Liquidators were appointed to DGI Debt Management and DGI
Accounting in late August. The firms owed than AUD93,000 and
AUD190,000 to the Australian Taxation Office.
In both statutory reports to creditors, liquidator Danny Vrkic of
DV Recovery Management said Ms. Grubisa "may have traded the
company whilst insolvent," AFR relays. Regarding DGI Accounting,
which provided accounting services to clients of DG Institute, the
insolvent trading may have occurred as early as February 2021.
But the liquidators said further investigation would be required to
see whether an insolvent trading claim existed and they had
insufficient funding to proceed further, AFR relates. Regardless,
the cost of running an insolvent trading case would exceed the
actual claim made by the ATO as the sole creditor, the liquidator
report said.
The report noted, however, Ms. Grubisa owns property and has
shareholdings in various companies.
AFR adds that the tax office said: "The ATO cannot comment on the
tax affairs of any individual or entity due to our obligations of
confidentiality under the law."
Trading while insolvent, meaning continuing to operate while unable
to pay debts when they are due, can lead to penalties or criminal
charges for directors if certain thresholds are met. The corporate
regulator can also chase directors for compensation for creditors,
to the point of bankruptcy.
She has continued to run wealth, property and asset protection
seminars, despite being banned by ASIC from running companies, and
no longer has a legal practising certificate, according to the
Victorian Legal Services Board and Commissioner, AFR relays.
In announcing the four-year ban, ASIC declared Ms Grubisa "has a
habit of not telling the truth and failed to conduct herself with
the professionalism of someone providing financial and credit
services".
ASIC found Ms. Grubisa is "not a fit and proper person" and was
"likely to continue to contravene financial services and credit
law".
Generally one indicator of potential insolvent trading is
continuing losses: the company reported losses of AUD6,638;
AUD222,842 and AUD176,967 in 2020, 2021 and 2022 respectively,
according to the liquidator's report.
Further insolvency indicators noted in the report are that DG Debt
Management owes AUD644,747 to Master Wealth Control Pty Ltd, which
trades as the DG Institute. It has no assets and the ATO is the
only creditor with a debt of AUD93,635, AFR discloses.
DGI Accounting also had no assets, the only known creditor was the
ATO and the debt to the tax office increased after February 2021,
according to the liquidator report. The company did not have the
money to pay related-party debts, the liquidator said. The report
said a potential claim against Ms Grubisa might be around
AUD165,000.
According to the DGI Debt Management report, Ms. Grubisa's
explanation for its failure was that it was "unable to trade due to
banning order". This refers to ASIC banning her for four years from
engaging in credit activity, providing financial services,
performing any function in a credit entity or controlling a credit
entity or financial services business. She is appealing against the
ban.
The statutory reports state "no dividend will be paid to
creditors," according to AFR.
AFR says the corporate regulator may ban a director who has been
involved with two or more companies that have gone into liquidation
within the last seven years and paid creditors less than 50 cents
in the dollar. Such a move would be at ASIC's discretion.
Last week, the Australian Competition and Consumer Commission
lodged a legal action Ms Grubisa's Master Wealth Control Pty Ltd,
alleging misleading or false claims in the marketing and sale of
its products, reports AFR.
AFR adds that the competition watchdog is seeking court orders
disqualifying Ms. Grubisa from managing a company for a set period
of time, as well as injunctions, penalties and corrective
publications. The DG Institute disputes the ACCC's claim and stated
it intends to fight it.
HALLBUILD PTY: Michael Caspaney Appointed as Liquidator
-------------------------------------------------------
Michael Caspaney of Menzies Advisory on Jan. 5, 2023, was appointed
as liquidator of Hallbuild Pty Ltd, trading as Hallbury Homes.
MAINLINE SERVICES: Second Creditors' Meeting Set for Jan. 13
------------------------------------------------------------
A second meeting of creditors in the proceedings of Mainline
Services (Aust) Pty Ltd has been set for Jan. 13, 2023, at 11:00
a.m. via teleconference facilities.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Jan. 12, 2023, at 5:00 p.m.
Richard Albarran and Brent Kijurina of Hall Chadwick were appointed
as administrators of the company on Dec. 2, 2022.
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C H I N A
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GREENLAND HOLDINGS: To Sell Major Stake in Unit for USD91 Million
-----------------------------------------------------------------
Yicai Global reports that Greenland Holdings plans to sell a
majority stake in its hotel management unit for CNY624 million
(USD91 million) as part of its asset-light strategy.
Yicai Global relates that Greenland's subsidiary Greenland Digital
Technology will sell its 52 percent stake in Shanghai Greenland
Hotel Management to Minyoun Hospitality, a Chengdu-based hotel
chain operator, the Shanghai-headquartered real estate giant
announced on Jan. 4.
Greenland Hotel Management was founded in January 2019, with
Greenland's units Greenland Digital and Greenland Financial
Technology Group holding 70 percent and 30 percent stakes in the
new company, respectively.
After the transaction, Greenland will inject assets from its hotel
management and other related subsidiaries into Greenland Hotel
Management, the firm added, Yicai Global relays.
According to Yicai Global, the deal is expected to bring an income
of around CNY610 million to Greenland, the company noted. As
Greenland Hotel Management will be excluded from its earnings
results after the transaction, the value of Greenland's remaining
48 percent stake in the hotel management firm will have to be
recalculated based on fair value, which will bring Greenland a book
income of CNY560 million, it said.
Greenland is facing great debt pressure due to the downturn of the
Chinese real estate market, the report notes. In November, it said
it applied to roll over its nine overseas bonds totaling USD3.2
billion.
Greenland logged CNY6.9 billion (USD1 billion) in net profit in the
first three quarters of 2022, down 38 percent from a year earlier,
Yicai Global discloses citing latest financial report. Revenue fell
28 percent to CNY306.1 billion (USD44.5 billion).
About Greenland Holdings
Greenland Holdings Corporation Limited focuses on the real estate
business. The Company owns 23 high-rise landmark buildings both
built and under construction across the world. The Company's
projects are located in more than 80 cities of 29 provinces
(autonomous regions and municipalities) in China. The Company also
develops projects in the United States, Canada, Australia, Japan,
Korea and other 3 foreign countries. Its residential projects are
for sale after development, while its commercial projects are for
lease and commercial and hotel operations apart from the most for
sale.
As reported in the Troubled Company Reporter, S&P Global Ratings,
on May 23, 2022, lowered its long-term issuer credit rating on
Greenland Holding Group Co. Ltd. (Greenland) to 'B-' from 'B+', and
the long-term issue rating on the senior unsecured notes the
company guarantees to 'CCC+' from 'B'. S&P also downgraded
Greenland's strategically important subsidiary Greenland Hong Kong
Holdings Ltd. (Greenland HK) to 'B-' from 'B'. All the ratings were
placed on CreditWatch with negative implications. S&P aims to
resolve the CreditWatch as soon as it has more visibility on the
progress of Greenland's asset disposals.
SUNAC CHINA: Bondholders Agree to US$2.3BB Debt Rollover Plan
-------------------------------------------------------------
South China Morning Post reports that Sunac China has won a
financial lifeline from creditors who have agreed to roll over
CNY16 billion (US$2.32 billion) of domestic bonds, or 85 per cent
of all its local-currency debt, to help it recover from the worst
industry slump in decades.
According to the Post, the rollover plan was approved by
bondholders in a meeting several days ago, the nation's
fourth-largest developer said in a statement on Jan. 4. On average,
the extension involving 10 bond issues will give the firm an extra
3.5 years to service its debt obligation, it added.
"This will ease Sunac's liquidity pressure," the company said. "It
can further improve the overall financial situation, and create
favourable conditions for the company to resume operations and
return to a healthier development."
The Post says China's debt-stricken developers are buying more time
to fend off creditors and wait for a rebound in the industry, aided
by financial support from lenders and state-owned peers. Beijing
has softened its approach to spur the economy, after its "three red
lines" policy triggered an unprecedented liquidity crunch and debt
defaults.
"Property sales in a number of markets could start to pick up
strongly by early February, after the Lunar New Year holiday,"
Gavekal Dragonomics said in a report on Jan. 4, the Post relays.
"If Beijing's supportive signals stay consistent, property sales
and construction could both see double-digit growth – admittedly
from a very low base - in 2023."
Sunac had CNY1.05 trillion of liabilities at the end of 2021,
including almost CNY322 billion of borrowings that had ballooned
from CNY303 billion a year earlier, the Post discloses. They
included 18.8 billion of local-currency bonds, according to its
2021 annual report published last month. Its unrestricted cash had
dwindled to CNY14.3 billion from CNY98.7 billion over the same
period, as home sales plunged.
The developer last month separately proposed to convert most of its
US$11 billion of offshore debt into equity and new long-term bonds
to survive the crisis. Earlier this week, it agreed to sell its
stake in a Shenzhen snow park project to reduce its debt burden.
The Post relates that to appease creditors at home, Sunac has
pledged multiple assets such as the Guangzhou Sunac Land Resort
theme park and a high-end project in Chongqing's Jiangbeizui area
called A-ONE, to guarantee repayment during the rollover period, it
added in the statement.
About Sunac China
Sunac China Holdings Limited (SEHK:1918) --
http://www.sunac.com.cn/-- engages in the sales of properties in
the People's Republic of China. The Company operates its business
through two segments: Property Development and Property Management
and Others. The Company's subsidiaries include Sunac Real Estate
Investment Holdings Ltd., Qiwei Real Estate Investment Holdings
Ltd. and Yingzi Real Estate Investment Holdings Ltd.
As reported in the Troubled Company Reporter-Asia Pacific in
October 2022, Moody's Investors Service has withdrawn Sunac China
Holdings Limited's Ca corporate family rating and its C senior
unsecured ratings. Prior to the withdrawal, the rating outlook was
negative. Moody's has decided to withdraw the ratings because it
believes it has insufficient or otherwise inadequate information to
support the maintenance of the ratings.
TIMES CHINA: Moody's Lowers CFR to Ca & Senior Unsecured Debt to C
------------------------------------------------------------------
Moody's Investors Service has downgraded Times China Holdings
Limited's corporate family rating to Ca from Caa1 and the company's
senior unsecured rating to C from Caa2.
The outlook remains negative.
"The downgrade and negative outlook reflect Times China's high
likelihood of default and Moody's expectation of weak recovery
prospects for the company's creditors, given its weak operating
performance and limited ability to service its upcoming offshore
debt maturity," says Kelly Chen, a Moody's Vice President and
Senior Analyst.
RATINGS RATIONALE
Times China announced on December 30, 2022 that it expects to
suspend its offshore debt payments [1]. The expected non-repayment
reflects the company's weak liquidity and constrained financial
flexibility. The suspension of payments could also trigger a
default on its scheduled debt repayment obligations and accelerate
the repayment of the company's other debt obligations.
The company's operating performance is weak, as its contracted
sales significantly decreased by 56% during the first 11 months in
2022 to RMB38.2 billion compared with the same period in 2021. The
company will have to rely on asset disposals or investments from
potential investors to generate funds to service its debt. The
company would also have to enter into a debt restructuring process
with its creditors. However, such activities entail high execution
risk with uncertain recovery prospects for its creditors.
Times China's senior unsecured debt rating is one notch lower than
the CFR because of structural subordination risk. Most of Times
China's claims are at the operating subsidiary level and have
priority over claims at the holding company in a liquidation
scenario. In addition, the holding company lacks significant
mitigating factors for structural subordination. Consequently, the
expected recovery rate for claims at the holding company is lower.
In terms of environmental, social and governance (ESG) risks,
Moody's has considered Times China's weak liquidity and financial
management, and concentrated ownership by its key shareholders,
Shum Chiu Hung and his wife, who jointly held a 62.74% stake as of
the end of December 2021.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's could further downgrade Times China's CFR if recovery
prospects for its creditors deteriorate.
An upgrade is unlikely, given the negative outlook.
However, positive rating momentum could develop if Times China
repays its maturing debt obligations and materially improves its
liquidity.
The principal methodology used in these ratings was Homebuilding
and Property Development published in October 2022.
Based in Guangdong province, Times China Holdings Limited is a
property developer that focuses on mass-market housing. As of the
end of 2021, the company's land bank totaled around 19.9 million
square meters across 17 cities in Guangdong and major provincial
cities such as Changsha, Wuhan, Chengdu and Hangzhou.
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I N D I A
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ABHILASH CHEMICALS: Ind-Ra Moves BB+ Rating in Non-Cooperating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
Abhilash Chemicals and Pharmaceuticals Pvt. Ltd. to the
non-cooperating category as per Ind Ra's policy on Issuer
Non-Cooperation, following non-submission of No Default Statement
continuously for 8 months despite continuous requests and
follow-ups by the agency and also IND-Ra's inability to validate
timely debt servicing through other sources it considers reliable.
No Default Statement in the format prescribed by SEBI is required
to be shared by the issuer every month as a confirmation that all
financial obligations are being serviced on time., Investors and
other users are advised to take appropriate caution while using
these ratings. The rating will now appear as 'IND BB+ (ISSUER NOT
COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR 160 mil. Non-Fund Based Working Capital Limit migrated to
non-cooperating category with IND A4+ (Issuer Not
Cooperating) rating;
-- INR 25 mil. Term loan due on May 31, 2024 migrated to non-
cooperating category with IND BB+ (Issuer Not Cooperating)
rating; and
-- INR 160 mil. Fund Based Working Capital Limit migrated to non-
cooperating category with IND BB+ (Issuer Not Cooperating) /
IND A4+ (Issuer Not Cooperating) rating.
Company Profile
Incorporated in 1989, ACPPL is a Madurai-based specialty chemicals
manufacturer. The company manufactures active pharmaceutical
ingredient - metformin hydrochloride, which is used as an oral
antidiabetic agent. It derives 85% of its revenue from the pharma
division and the remaining from the manufacturing of leather
chemicals and textile chemicals. ACPPL generates 90% of its revenue
from exports to Brazil, Thailand, the UAE, Sri Lanka, Pakistan,
Egypt, Syria and Vietnam.
ALS incorporated in 2017 is a separate business entity focused on
the production of pharmaceutical finished dosage forms for Global
markets.
AILSINGHANI TRANSPORT: Ind-Ra Moves BB- Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
Ailsinghani Transport Pvt Ltd to the non-cooperating category as
per Ind Ra's policy on Issuer Non-Cooperation, following
non-submission of No Default Statement continuously for 7 months
despite continuous requests and follow-ups by the agency and also
IND-Ra's inability to validate timely debt servicing through other
sources it considers reliable. No Default Statement in the format
prescribed by SEBI is required to be shared by the issuer every
month as a confirmation that all financial obligations are being
serviced on time., Investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating action is:
-- INR 40 mil. Fund Based Working Capital Limit migrated to non-
cooperating category with 'IND BB- (Issuer Not
Cooperating)/IND A4+ (Issuer Not Cooperating) rating.
Company Profile
Incorporated on April 15, 1997, Maharashtra-based ATPL is engaged
in transportation, logistics, warehousing and storage services.
AKASH STEEL: CARE Keeps B+ Debt Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Akash Steel
Crafts Private Limited (ASCPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.45 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 6.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 2,
2021, placed the rating(s) of ASCPL under the 'issuer
non-cooperating' category as ASCPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. ASCPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated September 18, 2022, September
28, 2022, October 8, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Akash Steel Crafts Private Limited (ASCPL) was incorporated in the
year 2005 by Mr. C. N. Mohanan and Mrs. Sharmila Mohanan and is
engaged in manufacturing of welded/seamless Stainless-Steel Pipes
and Tubes. It manufacturers various types of products like SS
welded pipes and tubes, SS EFW/EFSW pipes and tubes, SS
instrumental pipes and tubes, SS polished pipes and tubes, SS
seamless pipes and tubes and SS heat exchanger pipes and tubes
which find application in various machineries & equipment across
varied industries viz. dairy & food products, pharmaceutical
machineries, water treatment plants, oil & gas, chemicals,
refineries, power, paper, sugar, railways, etc. The company's
manufacturing facility is located at Taloja, Raigad and registered
office at Masjid, Mumbai.
AKRITI SALES: Ind-Ra Assigns BB+ LT Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Akriti Sales
Corporation (ASC) a Long-Term Issuer Rating of 'IND BB+'. The
Outlook is Stable.
The instrument-wise rating actions are:
-- INR610 mil. Fund-based working capital limit assigned with
IND BB+/ Stable/ IND A4+ rating;
-- INR60 mil. Term Loan due on January 2027 assigned with IND
BB+/ Stable rating; and
-- INR40 mil. Non-fund based working capital limit assigned with
IND A4+ rating.
Key Rating Drivers
Liquidity Indicator- Stretched: The average maximum utilization of
ASC's fund-based limits was 93.02% over the 12 months ended
November 2022. ASC's cash and cash equivalents stood at INR 58.54
million at FYE22 (FYE21: INR28.83 million), including fixed
deposits of INR56.05 million kept as margin money for the
fund-based limits. The net working capital cycle improved to 38
days in FY22 (FY21: 71 days, FY20: 57 days) due to a reduction in
the collection period to 32 days (64 days, 56 days), as changes in
the company's credit policies led to quicker realization of
receivables. ASC's cash flow operations remained negative at
INR15.07 million in FY22 (FY21: negative INR114.84 million).
Consequently, the free cash flows too remained negative at INR18.69
million in FY22 (FY21: negative INR116.77 million). The company has
debt obligations of INR54.3 million and INR 53.0 million for FY23
and FY 24, respectively, which would be met through internal
accruals.
The ratings are constrained by the proprietorship nature of the
business. Since ASC operates as a proprietorship firm, there is
always an inherent risk of withdrawal of capital at the time of
personal contingency. Furthermore, the entity has restricted access
to external borrowings, with the net worth as well as the
creditworthiness of the partners being critical factors that affect
the credit decisions of the lenders. The limited funding avenues,
along with limited financial flexibility, restrict the further
prospects for the firm.
The ratings reflect the competitive and cyclical nature of the
steel trading industry. The industry is highly fragmented, with a
large number of organized and unorganized players, leading to
intense competition. Also, the industry is cyclical in nature owing
to its dependence on macro-economic growth factors; this has a
major impact on the sustainability of trading companies such as
ASC.
The ratings are supported by the long track record of operations.
ASC, which sells directly to corporates, has been in the steel
trading business over a decade. The proprietor has almost a decade
of experience. Furthermore, ASC is an authorized dealer of Steel
Authority of India Limited (SAIL; 'IND AA/Stable/IND A1+') and
Jindal Steel and Power Limited (JSPL). During FY22, ASC procured
30.95% of its material requirement from SAIL, 26.36% from Gallant
Metal Ltd, 19.16% from JSPL and the balance from other suppliers in
the industry.
The ratings reflect ASC's diversified customer base. The top 10
customers, which include reputed companies such as SRF Limited (IND
AA+/ Stable/ IND A1+), and KLJ Group, Gujarat Fluorochemicals Ltd,
contributed around 54% to the total revenue in FY22. ASC receives
orders from the corporate customers based on the latter's capex
requirements.
The ratings factor in the medium scale of operations, as indicated
by revenue of INR6,389.12 million in FY22 (FY21: INR3,395.18
million, FY20: INR2,695.88 million). The revenue grew by 88.18% yoy
in FY22 due to an increase in sales volumes as well as
realizations. This resulted in the EBITDA per metric ton rising to
INR1,603.92 million in FY22 (FY21: INR1,502.51 million, FY20:
INR1,030.91 million). The volumes sold during FY22 increased by
43.53% yoy to 1,11,702 metric tons (MT) in FY22, supported by a
strong recovery in demand post covid. Meanwhile, the sale
realizations increased by 31.11% yoy to INR57,198 per MT in FY22.
During 8MFY23, ASC reported a gross revenue of INR 5,474.38
million. Ind-Ra expects the revenue to continue to increase in the
near-to-medium term.
The ratings benefit from the healthy EBITDA margins. The margin
fell to 2.80% in FY22 (FY21: 3.44%, FY20: 2.74%) because of higher
input costs. The ROCE was 21.3% in FY22 (FY21:17.8%, FY20:13.6%).
Ind-Ra expects margins to be stable in the near-to-medium term,
given the trading nature of operations.
The ratings reflect the average credit metrics. ASC's credit
metrics improved in FY22 owing to an increase in the absolute
EBITDA to INR179.16 million (FY21: INR116.93 million; FY20: INR
73.77 million). The gross interest coverage (operating EBITDA/gross
interest expense) was 3.68x in FY22 (FY21: 2.99x; FY20: 1.99x) and
the net financial leverage (Ind-Ra-adjusted debt/operating EBITDAR)
was 3.48x (4.75x; 5.14x). Of the total adjusted debt of INR681.89
million at FYE22 (FYE21: INR583.72 million; FYE20: INR426.64
million), INR117.75 million (INR125.90 million; FY20: INR109.32
million) was in the form of an unsecured loans infused by related
entities and the proprietor's relatives. Ind-Ra expects the credit
metrics to remain moderate in the near-to-medium term.
Rating Sensitivities
Negative: Any substantial decrease in the scale of operations,
deterioration in liquidity and credit metrics, with the interest
coverage falling below 2.5x, on a sustained basis, will be negative
for the rating.
Positive: An improvement in the liquidity while maintaining the
scale of operations and credit metrics will be positive for the
rating.
Company Profile
ASC is a proprietorship firm established in 1999 by Kamal Drolia.
It is engaged in the trading of structural steel and thermo
mechanically treated bars. The promoter initially started with the
cement business, and forayed into the steel trading business in
2010. ASC is an authorized dealer for companies such as SAIL,
Gallantt Metal Ltd, and Jindal Steel & Power Limited.
AMARTARA PRIVATE: CARE Withdraws B+/A4 Debt Ratings
---------------------------------------------------
CARE has reaffirmed and withdrawn the outstanding ratings of 'CARE
B+/Stable/CARE A4' assigned to the bank facilities of Amartara
Private Limited with immediate effect based on No Objection
Certificate from the lender.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ - Reaffirmed at CARE B+; Stable/
Short Term CARE A4 and withdrawn
Bank Facilities
Long Term Bank - Reaffirmed at CARE B+; Stable
Facilities and withdrawn
Short Term Bank - Reaffirmed at CARE A4 and
Facilities Withdrawn
Detailed Rationale & Key Rating Drivers
The reaffirmation of the rating continues to derive strength from
established track record of operations along with experienced
promoters and comfortable capital structure. However, the rating
continues to remain constrained by modest scale of operations
(Audited, refers to period April 1 to March 31), working capital
intensive nature of operation coupled with stressed liquidity
position, and foreign currency fluctuation risk.
Detailed description of the key rating drivers
Key Rating Weaknesses
* Modest scale of operations: The scale of operation marked by
total operating income continues to remain modest at INR130.09
crore in FY22 (PY: INR103 crore). The improvement in revenue in
FY22 was on account of revival of demand post pandemic. During
FY22, APL registered operating profit of INR6.02 crore (PY: INR1.92
crore) primarily on account of reduction in selling and
administration expenses and power & fuel expenses during the year.
Company registered higher PAT of INR13.79 crore accounted to profit
earned from sale of land worth INR11.65 crore in FY22.
* Working capital-intensive nature of operations: The operations
continue to remain working capital-intensive as the majority of the
funds are blocked in receivables and inventory. Further average
collection period stood high at 82 days in FY22 (88 days during
FY21). Further, the company requires to maintain good amount of
inventory level in the form of raw material and work in process in
order to meet the customer's requirement and average inventory
period stood at 40 days in FY22(43 days during FY21). On the other
hand company enjoys longer credit period from its suppliers in the
range of around 60-90 days from its suppliers, thereby balancing
off liquidity requirements. Owing to above mentioned scenario the
operating cycle of the company has elongated and remained at 80
days in FY22{(vis-à-vis 89 days in FY21 (A)}.
* Foreign currency fluctuation risk: APL is exposed to foreign
exchange fluctuation risk, given the imports of raw material from
China, Belgium, Taiwan and others which constitute around 80% of
the total purchases in FY21 and exports of PVDC film to
Philippines, Taiwan, Malaysia, UAE, UK, Jordon, Indonesia,
Bangladesh etc. which constitute around 20% of the total sales in
FY21. However, some comfort can be drawn from the fact that the
company is hedging its foreign currency exposure through forward
purchase contract limit of INR1.50 crore to cover and mitigate
exchange fluctuation risk associated with imports and exports.
However, APL remain expose to un-hedge foreign exchange exposure.
Hence, any adverse movement in exchange rate would impact
profitability of the company.
* Presence in competitive and fragmented industry: The company
faces intense competition from the large and established players in
the rigid packaging segment. APL is also exposed to high
fragmentation in the packaging industry, which has numerous players
at the bottom of the value chain and low entry barriers due to low
capital and technology requirements. Furthermore, due to limited
bargaining power against large clients, players like APL are unable
to pass on the fluctuations in the raw material prices to them.
Key Rating Strengths
* Established track record of operations along with experienced
promoters: APL possesses an established track record of more than
five decades in the business of manufacturing rigid PVDC
(Polyvinylidene chloride) films and cold form blister films for the
pharmaceutical industries. APL is managed and promoted by Mr. Arun
Sarup and his son Mr. Arjun Sarup. Mr. Arun Sarup holds vast
experience of over four decades through his association with the
company and Mr. Arjun Sarup holds experience of more than two
decades in the same line of business.
* Comfortable capital structure: Capital structure of APL
marginally improved with overall gearing at 0.43x in FY22
vis-à-vis 0.73x as on FY21. The marginal improvement was on
account of improvement in tangible net-worth due to accretion of
profits in FY22.
Liquidity: Stretched
The liquidity continues to remain stretched as reflected by average
utilisation of fund-based limits above 90% for last twelve months
ended November 30, 2022. Also, the track record of profit after tax
remains low. The company has booked profit of INR13.79 crores in
FY22 (FY21: loss of INR1.36 crores); however same is majorly on
account of sale of land to the extent of INR11.00 crore. Hence the
cash and bank balance has increased to INR13 crore in as on March
31, 2022 (FY21: INR2 crore).
Amartara Private Limited (APL) was incorporated as a private
limited company in 1964 and is promoted by Mr. Arun Sarup and his
son, Mr. Arjun Sarup. APL is engaged in the business of
manufacturing rigid PVDC (Polyvinylidene chloride) films and cold
form blister films for pharmaceutical industry. They import raw
material viz. PVC Films (Polyvinyl chloride) from China, Belgium
and Taiwan and chemicals such as Difone A736, Emulder 381, etc.
from France (imports contributing to 85% of total purchases in FY21
(71% in FY20)) whereas the rest accounts for domestic purchases of
PVC films primarily from AVI Global Private Limited (Daman).
Exports to Philippines, Taiwan, Malaysia, UAE, UK, Jordon,
Indonesia, Bangladesh etc. contributed to 20% of the total sales of
FY21 (20% of the total sales in FY20), while rest with domestic
sales taking place pan India. AFPL has two plants located at Mumbai
and Gujarat with combined total installed capacity of 630 tonnes of
films per month. The company is an ISO 9001:14001 certified and
also hold certifications such as MSDS Certificate, Food Grade
Certificate, DMF Certificate, etc.
AMODA IRON: CARE Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Amoda Iron
And Steel Limited (AISL) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 5.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 18,
2021, placed the rating(s) of AISL under the 'issuer
non-cooperating' category as AISL had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. AISL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated September 3, 2022, September 13, 2022, September
23, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Amoda Iron & Steel Limited (AISL), was incorporated in the year
2003 as a public limited company (unlisted). The company is
promoted by Mr. Upputhulla Kondala Rao, Mr. T. Satish Kumar, Mr. T.
Satish Kumar and others. The company is engaged in manufacturing of
sponge iron, which is used in manufacturing of steel bars. The
company has a total installed capacity of around 200 tons per hour,
and the plant is located at Jaggayyapet, Andhra Pradesh. The
company procures basic raw material, viz. Iron Ore, Coal and
Limestone from in and around Jaggayyapet. The company sells its
products to the steel plants in the adjoining areas.
ANAND MOTOR: Ind-Ra Moves BB Rating in Non-Cooperating
------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
Anand Motor Agencies Limited to the non-cooperating category as per
Ind Ra's policy on Issuer Non-Cooperation, following non-submission
of No Default Statement continuously for 8 months despite
continuous requests and follow-ups by the agency and also IND-Ra's
inability to validate timely debt servicing through other sources
it considers reliable. No Default Statement in the format
prescribed by SEBI is required to be shared by the issuer every
month as a confirmation that all financial obligations are being
serviced on time., Investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR30 mil. Non-Fund Based Working Capital Limit migrated to
non-cooperating category with IND A4+ (Issuer Not
Cooperating) rating; and
-- INR268 mil. Fund Based Working Capital Limit migrated to non-
cooperating category with IND BB (Issuer Not Cooperating) /
IND A4+ (Issuer Not Cooperating) rating.
Company Profile
AMAL was incorporated in 1987 and is engaged in the trading of
four-wheelers and holds a 3S authorized dealership of MSIL. Under
the MSIL dealership, the company has five showrooms, four outlets
and six service centers in Lucknow.
ANNAPURNA TRADERS: CARE Keeps C Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Annapurna
Traders (AT) continue to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 3.26 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 6.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 22,
2021, placed the rating(s) of AT under the 'issuer non-cooperating'
category as AT had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. AT continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
October 8, 2022, October 18, 2022, October 28, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Annapurna Traders (AT) was established as a proprietorship firm in
2007. The firm is primarily engaged in trading of wheat, soya bean,
chana and makka etc. The firm has two manufacturing units located
at Bematara and Nandul, Chhattisgarh with aggregate processing
capacity of 11,520 metric ton per annum (MTPA). AT procures paddy
from farmers & local agents and sells its products through the
wholesalers and distributors located in Chhattisgarh. Mr. Manish
Kumar Gilda, having more than a decade of experience in the rice
milling industry and trading business, looks after the day to day
operations of the firm along with a team of experienced
professionals who have rich experience in the similar line of
business.
ASHOK TIMBER: CARE Keeps B- Debt Ratings in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Ashok
Timber Trading Co. (ATTC) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.50 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 25.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 1,
2021, placed the rating(s) of ATTC under the 'issuer
non-cooperating' category as ATTC had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. ATTC
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated September 17, 2022, September 27, 2022, October
7, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Bangalore (Karnataka) based, Ashok Timber Trading Company (ATTC)
was established in the year 2007 as a partnership firm by Mr.
Shivji Gopal Patel and family. The firm is engaged in wholesale and
retail trading of timber and plywood.
BEWAKOOF BRANDS: CARE Lowers Rating on INR19.66cr Loan to B
-----------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Bewakoof Brands Private Limited (BBPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 19.66 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B+; Stable
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 1,
2021, placed the rating(s) of BBPL under the 'issuer
non-cooperating' category as BBPL had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. BBPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated September 17, 2022, September 27, 2022, October
7, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of BBPL have been
revised on account of non-availability of requisite information.
The rating also considers decline in scale of operations and
continuing losses along with an increase in overall debt in FY21 as
compared to FY20.
Bewakoof Brands Private Limited (BBPL) incorporated in 2011 by Mr.
Prabhkirandeep Singh and Mr. Siddharth Munot as a private limited
company, is engaged in online retailing of readymade garments and
mobile covers through its website and mobile application
(bewakoof.com) across India and does sales under its own brand i.e.
"Bewakoof". Company procures its major raw material i.e. grey
fabric from Tirupur (Textile hub) and does further process of
knitting, stitching and designing in its own manufacturing unit in
Bivandi, Mumbai.
BL AGRO: Ind-Ra Keeps BB Long Term Issuer Rating in Non-Cooperating
-------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained B.L. Agro Oils
Limited's Long-Term Issuer Rating in the non-cooperating category.
The issuer did not participate in the rating exercise despite
continuous requests and follow-ups by the agency. Therefore,
investors and other users are advised to take appropriate caution
while using these ratings. The rating will continue to appear as
'IND BB (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR2.750 bil. Fund-based working capital limit maintained in
non-cooperating category with IND BB (ISSUER NOT
COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating; and
-- INR770 mil. Term loan maintained in non-cooperating category
with IND BB (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
September 30, 2021. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
Company Profile
B.L. Agro Oils, incorporated in 1999, is engaged in the trading,
processing and manufacturing of edible oils, namely rice bran,
mustard, soya, refined palmolein and others.
BULLAND BUILDTECH: CARE Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Bulland
Buildtech Private Limited (BBPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 45.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 19,
2021, placed the rating(s) of BBPL under the 'issuer
non-cooperating' category as BBPL had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. BBPL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated September 4, 2022, September 14, 2022, September
24, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Delhi-based BBPL was incorporated by Mr Rajneesh Nagar, Mr RamKesh
Basist and Mr Krishan Pal Singh. The company is engaged in real
estate development. Currently, BBPL is developing 'Bulland
Elevates' residential project with 10.95 lsf of saleable area. The
promoters of BBPL have other business interests such as dealership
of Lohia Machinery Limited (LML), dealership of TVS Motor Company;
which is being carried out through associate concerns, namely, M/s
Bulland Automobile and M/s Bulland Motors, and M/s Flash Express
Courier Services engaged in courier business.
ESSPAL INTERNATIONAL: Ind-Ra Moves BB+ Rating in Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
Esspal International Private Limited to the non-cooperating
category as per Ind Ra's policy on Issuer Non-Cooperation,
following non-submission of No Default Statement continuously for
10 months despite continuous requests and follow-ups by the agency
and also IND-Ra's inability to validate timely debt servicing
through other sources it considers reliable. No Default Statement
in the format prescribed by SEBI is required to be shared by the
issuer every month as a confirmation that all financial obligations
are being serviced on time., Investors and other users are advised
to take appropriate caution while using these ratings. The rating
will now appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR111.5 mil. Term loan due on Jan 31, 2027 migrated to non-
cooperating category with IND BB+ (Issuer Not Cooperating)
rating;
-- INR48.5 mil. Term loan migrated to non-cooperating category
with IND BB+ (Issuer Not Cooperating) rating;
-- INR400 mil. Fund Based Working Capital Limit migrated to non-
cooperating category with IND BB+ (Issuer Not Cooperating) /
IND A4+ (Issuer Not Cooperating) rating; and
-- INR20 mil. Non-Fund Based Working Capital Limit migrated to
non-cooperating category with IND A4+ (Issuer Not
Cooperating) rating.
Company Profile
Incorporated in March 2009, EIPL manufactures and trades grey
fabrics. The company, promoted by Manish Lath and Rashmi Lath, has
a facility in Bhilwara, Rajasthan, with 340 weaving machines.
EXCELL AUTOVISTA: Ind-Ra Assigns 'BB+' Rating, Outlook Stable
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Excell Autovista
Private Limited (EAPL) a Long-Term Issuer Rating of 'IND BB+'. The
Outlook is Stable.
The instrument-wise rating actions are:
-- INR944.5 mil. Fund-based working capital limit assigned with
IND BB+/Stable/IND A4+ rating;
-- INR80 mil. Non-fund-based working capital limit assigned with
IND A4+ rating; and
-- INR284.7 mil. Term loan due on March 2026 assigned with IND BB
+/Stable rating.
Key Rating Drivers
Medium Scale of Operations: The operating revenue grew to INR7,039
million in FY22 (FY21: INR5,868 million), as the result of a
recovery in demand. The company had witnessed a decline in its
turnover during FY20-FY21, mainly due to a slowdown in the
automobile industry and the impact of COVID-19 on the business.
EAPL generated 83.6% of its revenue from the dealership of Maruti
Suzuki India Limited - passenger vehicle (PV) segment through seven
showrooms. It also has two True Value showrooms which deal in
pre-owned PVs, and nine service centers. EAPL has inaugurated an
additional showroom-cum-service center in Roha, Raigad in November
2022 and is adding a new showroom in Kolad, Raigad which shall be
operational by March 2023. MSIL is a market leader in the PV
segment of India, accounting 43% of domestic sales during FY22
(FY21: 50%, FY20: 53%). EAPL has already achieved a revenue of
INR440 million in 1HFY23.
Modest Profitability: The EBITDA margins ranged from 2.7% to 3.3%
during FY19 to FY22, primarily on the account of the dealership
model and the revenue being concentrated in the sales of vehicles
while the services and spare parts are higher margin segments. The
return on capital employed was 13.5% in FY22 (FY21: 10.2%). In
FY22, Ind-Ra expects the margins to remain stable over the medium
term.
Weak Credit Metrics: Albeit weak, EAPL's credit metrics improved in
FY22 with interest coverage (operating EBITDA/gross interest
expense) of 2.11x (FY21: 1.57x) and net leverage (adjusted net
debt/operating EBITDA) of 4.0x (5.09x). The metrics improved mainly
due an increase in the absolute EBITDA to INR192.45 million (FY21:
INR157.26 million). Ind-Ra expects the metrics to improve further
in FY23, owing to the timely repayment of debt and an increase in
the absolute EBITDA.
Liquidity Indicator - Stretched: EAPL's average maximum utilization
of fund-based working capital limits was on a higher level over the
12 months ended November 2022. At FYE22, the company's cash and
cash equivalents stood at INR163.08 million (FYE21: INR147.46
million), of which INR149.19 million were in the form fixed
deposits earmarked as securities against working capital limits.
The cash flow from operations declined to INR23.32 million in FY22
(FY21: INR235.97 million), mainly due to an increase in the working
capital requirement. However, during FY22, EAPL's net-working
capital cycle reduced to 28 days (FY21: 30) majorly due to a
decline in its inventory days to 23 (30). With no major capex, the
free cash flow was at INR2.77 million in FY22 (FY21: INR167.94
million). The term debt outstanding was at about INR311.5 million
on 31 March 2022 with a repayment obligation of INR73.7 million,
INR78.5 million in FY23 and FY24 respectively, which, Ind-Ra
believes, will be paid out of the internal accruals.
Cyclical Nature of the Auto Industry and Intense Competition: EAPL
operates in the cyclical auto industry which is susceptible to
macro-economic factors. EAPL's operations remain dependent on sale
of MSIL's PVs, exposing the company to cyclical downturns in the PV
segment, as well as the risks of a lower demand for MSIL's vehicles
and increased competition from other dealers of MSIL. Furthermore,
EAPL's operations are concentrated in the state of Maharashtra,
exposing the company to geo-political risks.
Established Market Position of EAPL and Experienced Promoters: EAPL
was incorporated in 2005 and has been into the dealership of MSIL.
The company has nine showrooms, five service centers and four stock
yards across Mumbai, Navi Mumbai and Pune and is in the process of
expanding in Raigad. The ratings also factor in the promoters' over
a decade of experience in the automobile sector.
Rating Sensitivities
Positive: Sustenance in the scale of operations, leading to an
improvement in the overall credit metrics with net leverage going
below 3.5x and improvement in the liquidity position, could lead to
a positive rating action.
Negative: A decline in the scale of operations or the net leverage
going above 4.5x or deterioration on the liquidity position, could
lead to a negative rating action.
Company Profile
Incorporated in 2005, EAPL is primarily an authorized dealer of
MSIL. The company is promoted by Madhup Agarwal and Sunny Agarwal.
EAPL has nine showrooms, five service centers and four stock
yards.
FUJIN WIND: CARE Keeps D Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Fujin Wind
Parks Private Limited (FWPPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 296.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 18,
2021, placed the rating(s) of FWPPL under the 'issuer
non-cooperating' category as FWPPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. FWPPL continues to be noncooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated September 3, 2022, September
13, 2022, September 23, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Incorporated in September 2011, Fujin Wind Parks Private Limited
(FWPPL) is a wholly owned subsidiary of Ecoren One Wind Energy
Private Limited (EOW) which is part of Ecoren Energy India Private
Limited. EOW is a Joint Venture (JV) between Ecoren and GE
Affiliate; Guayama P.R. Holdings BV (Guayama) in the ratio of
51:49. EOW was incorporated on July 01, 2015 and is an investment
holding company for the Independent Power Producer (IPP) executed
under the JV. Guayama is a 100% subsidiary of GE Capital
International Holdings Limited whose ultimate holding company is
General Electric Company (GE); New York.
FURNACE FABRICA: Ind-Ra Moves BB- Rating in Non-Cooperating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
Furnace Fabrica (India) Limited to the non-cooperating category as
per Ind Ra's policy on Issuer Non-Cooperation, following
non-submission of No Default Statement continuously for 9 months
despite continuous requests and follow-ups by the agency and also
IND-Ra's inability to validate timely debt servicing through other
sources it considers reliable. No Default Statement in the format
prescribed by SEBI is required to be shared by the issuer every
month as a confirmation that all financial obligations are being
serviced on time., Investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR83.10 mil. Letter of Credit migrated to non-cooperating
category with IND BB- (Issuer Not Cooperating) rating;
-- INR 2.558 bil. Non-Fund Based Working Capital Limit Migrated
to non-cooperating category with IND BB- (Issuer Not
Cooperating) rating;
-- INR589 mil. Fund Based Working Capital Limit migrated to non-
cooperating category with IND BB- (Issuer Not Cooperating)
rating; and
-- INR30 mil. Non-Fund Based Working Capital Limit migrated to
non-cooperating category with IND A4+ (Issuer Not
Cooperating) rating.
Company Profile
FFIL provides engineering, procurement and construction services
for metallurgical, fertilizer, petrochemical, refinery, cement,
power and steel plants on a turnkey basis.
Its head office is in Mumbai. It has regional offices in Delhi,
Kochi and Kolkata, and its international offices are in Zambia,
Morocco and the UAE. Furthermore, FFIL has captive fabrication
facilities in Navi Mumbai (Maharashtra) and Kandla (Gujarat) in
India and Chingola in Zambia. The company is promoted by A.
Baseeruddin.
HOTEL SWOSTI: Ind-Ra Moves BB Issuer Rating in Non-Cooperating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Hotel Swosti Pvt
Ltd.'s Long-Term Issuer Rating to the non-cooperating category. The
issuer did not participate in the rating exercise despite
continuous requests and follow-ups by the agency. Therefore,
investors and other users are advised to take appropriate caution
while using these ratings. The rating will now appear as 'IND BB
(ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR7.5 mil. Fund-based facilities migrated to Non-Cooperating
category with IND BB (ISSUER NOT COOPERATING) rating;
-- INR39.59 mil. Term Loan due on September 2027 migrated to Non-
Cooperating category with IND BB (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
November 3, 2021. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
Company Profile
Incorporated in 1981, Hotel Swosti operates Swosti Grand, a luxury
business four-star hotel in Bhubaneswar (Odisha), near
Bhubaneshwar railway station.
HUBLI COTTON: CARE Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Hubli
Cotton Industries (HCI) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 1,
2021, placed the rating(s) of HCI under the 'issuer
non-cooperating' category as HCI had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. HCI
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated September 17, 2022, September 27, 2022, October
7, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Karnataka based, Hubli Cotton Industries (HCI) was established on
July 18, 2015 as a partnership firm and its commercial operations
started from January, 2017. The firm is promoted by Mr.
Maheshchandra P Khandelwal along with his family members. The firm
is engaged in processing of cotton lint and seeds.
K. V. R CONSTRUCTIONS: CARE Lowers Rating on INR25cr LT Loan to B-
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of K. V. R
Constructions (KVRC) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 25.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Short Term Bank 15.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 27,
2021, placed the rating(s) of KVRC under the 'issuer
non-cooperating' category as KVRC had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. KVRC
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated September 12, 2022, September 22, 2022, October
2, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of KVRC have been
revised on account of non-availability of requisite information.
K. V. R Constructions (KVRC) was established in the year 2005 as a
proprietorship firm. The firm is a Class I civil contractor and has
its registered office located at Davangere, Karnataka. KVRC
commenced its operation in the year 2007 and is engaged in civil
construction works of irrigation canals, bridges, road works and
buildings. The firm is primarily a contractor for various
government organizations, Private Sector Undertakings (PSU's) and
private organization.
KAFILA HOSPITALITY: Ind-Ra Moves B+ Rating in Non-Cooperating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
Kafila Hospitality and Travels Private Limited to the
non-cooperating category as per Ind Ra's policy on Issuer
Non-Cooperation, following non-submission of No Default Statement
continuously for 11 months despite continuous requests and
follow-ups by the agency and also IND-Ra's inability to validate
timely debt servicing through other sources it considers reliable.
No Default Statement in the format prescribed by SEBI is required
to be shared by the issuer every month as a confirmation that all
financial obligations are being serviced on time., Investors and
other users are advised to take appropriate caution while using
these ratings. The rating will now appear as 'IND B+ (ISSUER NOT
COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR 425 mil. Fund Based Working Capital Limit migrated to non-
cooperating category with IND B+ (Issuer Not Cooperating)
rating; and
-- INR 425 mil. Fund Based Working Capital Limit migrated to non-
cooperating category with IND B+ (Issuer Not Cooperating)
rating.
Company Profile
Based in Delhi, KHTPL was established in 2008 by Pradeep Chadda. It
undertakes airline ticket and hotel bookings through the
business-to-business and business-to-consumer models, and runs a
27-room guest house based in Delhi. The company has also entered
into the railway booking segment.
KANAK GINNING: CARE Keeps C Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Kanak
Ginning (KG) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.77 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated December 21,
2021, placed the rating(s) of KG under the 'issuer non-cooperating'
category as KG had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. KG continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
November 6, 2022, November 16, 2022, November 26, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which, however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
KG based out of Nagpur, Maharashtra is a proprietorship firm
established in January 2016. The entity is engaged in ginning and
pressing of cotton and extraction of oil from cotton seed. The
ginning and pressing unit and oil extraction unit is located at
Nagpur, Maharashtra.
KANTHARAJ H M: CARE Lowers Rating on INR15cr LT Loan to B-
----------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Kantharaj H M (KHM), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 26,
2021, placed the rating(s) of KHM under the 'issuer
non-cooperating' category as KHM had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. KHM
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated September 11, 2022, September 21, 2022, October
1, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of KHM have been
revised on account of non-availability of requisite information.
Kantharaj H M (KHM) is a proprietorship firm established in 1997 by
Mr. Kantharaj H M in Hassan, Karnataka. The firm is a class I
contractor for Public Works Department (PWD), Karnataka for
undertaking civil constructions of buildings, roads, bridges
etc.Over the last few years, KHM has undertaken various contracts
for construction of roads, buildings in Hassan, Shimoga, Mysore,
Mandya and Bengaluru regions of Karnataka for the Public Works
Department.
KERALA STATE: Ind-Ra Affirms 'B-' Rating, Outlook Stable
--------------------------------------------------------
India Ratings and Research (Ind-Ra) has taken the following rating
actions on Kerala State Electronics Development Corporation Ltd.'s
(KSEDC) bank facilities:
-- INR100 mil. Working capital limits affirmed; Outlook revised
to Stable from Negative with IND B-/Stable/IND A4 rating.
The Outlook revision reflects the closure of project-specific
loans, which had irregularities in debt servicing in the past and
Ind-Ra's expectation of an improvement in KSEDC's revenue in FY23,
backed by its strong order book. Furthermore, the agency expects
the EBITDA margin to improve in FY23, supported by the company's
increased focus on manufacturing activities than trading.
Key Rating Drivers
KSEDC reported continued delays in the debt servicing on the
unsecured loans from the government of Kerala (GoK), who is the
primary shareholder (98.03%) and other government entities until
FY22. However, a majority portion of the unsecured loans and
interest accrued on the loans were converted into equity. On May
15, 2020, the GoK had approved the conversion of a government loan
amounting to INR720 million and government grants amounting to
INR60 million into equity. Further, on October 18, 2022, the GoK
had approved the conversion of interest accrued on the government
loans amounting to INR923 million into equity. At FYE22, the total
debt stood at INR987 million, of which INR801 million of loans were
availed from the GoK and state government entities and had interest
accrued on the same.
Liquidity Indicator- Poor: The company's average combined
utilization of the fund-based and non-fund-based limits availed
from banks was 93% while that of the fund-based limits availed from
government entities was 76% over the 12 months ended November 2022.
The net cash conversion cycle remained elongated at 102 days in
FY22 (FY21: 104 days). The receivable period remained long at
268-348 days over FY19-FY22 (FY22: 348 days, FY21: 346 days) on
account of delays in receivables from customers. The cash flow from
operations declined to INR142 million in FY22 (FY21: INR545
million) on account of increased working capital requirements. The
company has repayment obligations of INR40.1 million and INR21.5
million for FY23 and FY24, respectively, for the loans availed from
banks and other government entities, and is likely to be met out of
internal accruals. KSEDC has high cash and cash equivalents at the
end of the year (FYE22: INR758 million, FYE21: INR619 million)
since the company receives advances from government departments.
The rating also factors in KSEDC's medium scale of operations. The
revenue grew to INR5,217 million in FY22 (FY21: INR4,502 million)
backed by a change in product mix. Ind-Ra expects the revenue to
grow in FY23 as well, backed by a strong order book of INR6,901
million (1.3x of FY22 revenue) as of September 2022 which provides
revenue visibility for the medium to long term.
The credit metrics turned moderate from weak in FY22 as reflected
in the gross interest coverage (operating EBITDA/gross interest
expense) of 5.1x (FY21: 2.1x) and net leverage (total adjusted net
debt/operating EBITDAR) of 0.63x (10.2x), backed by a reduction in
the debt levels to INR987.3 million (INR1,809 million) and an
increase in the EBITDA to INR366 million (INR117 million).
However, the rating is supported by the company's healthy EBITDA
margin with a return on capital employed of 20% in FY22 (FY21: 5%).
The EBITDA margin expanded to 7% in FY22 (FY21: 2.6%) owing to
increased revenue contribution from the manufacturing segment which
is likely to continue. In FY22, the revenue share from
manufacturing activities increased to 20% from 12% in FY21.
The rating also benefits by the willingness of the government of
Kerala which holds 98% stake in KSEDC, to extend unsecured loans to
support the company's capex plans. KSEDC's debt largely consists of
unsecured loans from the state government.
The rating is also supported by KSEDC's significant operational
track record as it has been operating in the electronics industry
since 1973.
Rating Sensitivities
Negative: Any decline in the operating profitability and a further
stretch in the working capital cycle, leading to further
deterioration in the liquidity position and credit metrics, would
be negative for the ratings.
Positive: A significant improvement in the working capital cycle,
leading to an improvement in the liquidity position, while
sustaining the scale of operations along with an improvement in the
operating profitability, would be positive for the ratings.
Company Profile
Incorporated in 1972, Trivandrum, Kerala-based KSEDC is a GoK
undertaking engaged in the manufacturing of a wide range of
electronic goods. It undertakes projects involving the designing,
manufacturing, testing, installation, commissioning and maintenance
of electronic equipment in industrial establishments. KSEDC has
four manufacturing units, along with a diversified product
portfolio, catering to sectors such as defense, space, power
electronics, control and instrumentation, traffic management,
information technology/information technology-enabled services, and
security and surveillance.
KOPALLE PHARMA: CARE Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Kopalle
Pharma Chemicals Private Limited (KPCPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 9.75 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 22,
2021, placed the rating(s) of KPCPL under the 'issuer
non-cooperating' category as KPCPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. KPCPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated September 7, 2022, September
17, 2022, September 27, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Kopalle Pharma Chemicals Private Limited (KPCPL) was incorporated
in 1981 and the company was taken over by the present promoter; by
Mr. G. Ramesh (Managing Director) in 2012. The company is engaged
in manufacturing of active pharmaceutical ingredients (API's) &
intermediaries. KPCPL is an ISO 9001:2008 certified company and has
a GMP Certified manufacturing facility at Jeedimetla in Hyderabad.
The company is primarily a domestic player and has product
portfolio of nearly 20 products with focus on anti-psychotic
segment.
KRISHNAMOHAN ENERGY: Ind-Ra Moves B+ Rating in Non-Cooperating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
Krishnamohan Energy and Infrastructure Private Limited to the
non-cooperating category as per Ind Ra's policy on Issuer
Non-Cooperation, following non-submission of No Default Statement
continuously for 8 months despite continuous requests and
follow-ups by the agency and also IND-Ra's inability to validate
timely debt servicing through other sources it considers reliable.
No Default Statement in the format prescribed by SEBI is required
to be shared by the issuer every month as a confirmation that all
financial obligations are being serviced on time., Investors and
other users are advised to take appropriate caution while using
these ratings. The rating will now appear as 'IND B+ (ISSUER NOT
COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- LongTerm Issuer with IND B+ (ISSUER NOT COOPERATING) rating.
Company Profile
Incorporated in May 2016, KEIPL is setting up a dedicated ethanol
manufacturing plant in Madhya Pradesh. Saiyyad Akhtar Ali, Femina
Mughal and Kamruddin Mughal are the promoters.
L. N. FIELDS: CARE Keeps B- Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of L. N.
Fields Private Limited (LNFPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 16.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 22,
2021, placed the rating(s) of LNFPL under the 'issuer
non-cooperating' category as LNFPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. LNFPL continues to be noncooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated September 7, 2022, September
17, 2022, September 27, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Incorporated in January 1998, L. N. Fields Private Limited (LNFPL)
was promoted by Mr. Arvind Karnani, Mr. Ujjal Dugar and Ms. Shalini
Karnani. Till FY17, LNFPL was into trading of agro fertilizer,
pesticides and cultivation of fruits and vegetables. However, the
company discontinued the trading operations and started
manufacturing of bio-organic fertilizer and pesticides along with
cultivation of fruits and vegetables. The company has two farm
lands one is located at Dhobni Village, (spread in an area of 50
acres) and other located in Nagpur (speared in an area of 100
acres) where the company uses scientific method for farming fruits
and vegetables like pomegranate, colour capsicum and broccoli. The
company sells its organic fertilizer and pesticides under its
registered brands like Hannibal, Netra Max, Red Star, Pinaca,
Simone etc. The company has its warehouse/godown located in 8
different cities spread in the state of Jharkhand, Assam and
Maharashtra. The company has availed moratorium for interest on
working capital and principal and interest repayment on term loan
for the period from March 2020 to August 2020 from its lender.
LANGTA BABA: Ind-Ra Moves BB+ Rating in Non-Cooperating
-------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
Sri Langta Baba Steels Private Limited to the non-cooperating
category as per Ind Ra's policy on Issuer Non-Cooperation,
following non-submission of No Default Statement continuously for
11 months despite continuous requests and follow-ups by the agency
and also IND-Ra's inability to validate timely debt servicing
through other sources it considers reliable. No Default Statement
in the format prescribed by SEBI is required to be shared by the
issuer every month as a confirmation that all financial obligations
are being serviced on time., Investors and other users are advised
to take appropriate caution while using these ratings. The rating
will now appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR350 mil. Fund Based Working Capital Limit migrated to non-
cooperating category with IND BB+ (Issuer Not Cooperating) /
IND A4+ (Issuer Not Cooperating) rating;
-- INR75 mil. Non-Fund Based Working Capital Limit migrated to
non-cooperating category with IND A4+ (Issuer Not
Cooperating) rating; and
-- INR10 mil. Term loan due on Jun 30, 2026 migrated to non-
cooperating category with IND BB+ (Issuer Not Cooperating)
rating.
Company Profile
Incorporated in 2005, SLBSPL runs a fully automatic steel
re-rolling mill in Jharkhand to manufacture MS billets (90,000
metric tons per annum) and thermo-mechanically treated bars (90,000
metric tons per annum). It also has a slag crushing capacity of
7,200 metric tons per annum. It sells its products under the brand
name TUFCON.
LONE FURROW: Ind-Ra Hikes NonConvertible Debts Rating to BB+
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Lone Furrow
Investments Private Limited's (LF) non-convertible debentures
(NCDs) to 'IND BB+' from 'IND BB'. The Outlook is Stable.
The detailed rating actions are:
-- INR1.5 mil. NCDs I ISIN INE0FST07042 issued on December 27,
2021 Zero Coupon due on December 26, 2024 upgraded with
IND BB+/Stable rating; and
-- INR2.0 mil. NCDs II ISIN INE0FST07059 issued on December27,
2021 Zero Coupon due on December 26, 2024 upgraded with IND
BB+ / Stable rating.
ANALYTICAL APPROACH: To arrive at the ratings, Ind-Ra has
consolidated the business and financial risk profiles of LF and all
the entities in Medplus group, together referred to as the group
hereafter, as it believes that the successful repayment/refinancing
of debt depends on the market value of Medplus. The ratings of the
operating entities within the Medplus Group could be meaningfully
different from that of the rated NCDs, given that the cash flows
may not be fully fungible across the group. LF has no operations of
its own and is the holding company of Medplus.
The upgrade reflects an improvement in Medplus' liquidity position
following the successful completion of its initial public offering
(IPO) and the listing of shares of Medplus Health Services Limited
(Medplus) on the BSE Ltd and National Stock Exchange of India
Limited in December 2021. Medplus received fresh issue of INR6
billion, which was utilized to meet working capital requirements of
Optival Health Solutions Pvt Ltd (Optival; 100% subsidiary of
Medplus).
Key Rating Drivers
Improvement in Liquidity Post Completion of Medplus IPO: On 23
December 2021, Medplus concluded its IPO with a total issue size of
INR13.98 billion, of which INR6 billion was fresh issue. The IPO
proceeds were mainly utilized for funding Optival's working capital
requirements, as reflected in the reduction of its working capital
limits to INR60 million from INR1.75 billion with an average
utilization of 28% during the 12 months ended November 2022 and
healthy cash & equivalents (including liquid investments) of
INR3.59 billion at 1HFYE23. Ind-Ra expects the improved liquidity
to boost Medplus' business growth.
Weak Cash Fungibility from Medplus to Holdcos: Although Medplus'
holding companies (holdcos) have been infusing equity into the
former, there has been no dividend outflow from Medplus till date.
Additionally, there has been no instance of Medplus or its
subsidiaries being leveraged to fund any of the holdcos' debt.
Therefore, the group derives financial flexibility entirely from
the promoters' unpledged shareholding in Medplus, whose valuation
has been increasing over the years.
Group Credit Profile Impacted by Holdco Debt: The holdco-level
debt, post the issuance of the rated NCDs, was about INR6.25
billion at FYE22, including LF's of INR3.5 billion and Agilemed
Investments Private Limited's (Agilemed, promoter holding company,
holds 13% stake in Medplus) of about INR2.75 billion. At the
standalone operational entity level, Medplus continues to have a
comfortable credit profile. the net adjusted leverage (net adjusted
debt/EBITDA) improved to 0.63x in FY22 (FY21: 2.23x), the interest
coverage (Operating EBITDA/Gross Interest Expense) improved to 4.1x
(3.95x) owing to an improvement in the EBITDA to INR2.72 billion
(INR2.17 billion), backed by an improvement in the revenue to INR38
billion (INR31 billion) following the addition of 747 stores in
FY22. However, the group-level gross adjusted consolidated leverage
was 5.23x in FY22 (FY21: 5.43x) and is likely to increase above
6.03x by FYE23. The group-level interest coverage deteriorated to
1.81x in FY22 (FY21: 3.10x), although is likely to remain stable
over FY23, despite of increasing accrued interest towards the
holding company's debt. Ind-Ra takes comfort from the group's
strong debt service coverage ratio in FY23, owing to no term debt
repayment obligations until February 2024.
Liquidity Indicator - Adequate: Ind-Ra believes the cash flows of
LF and Medplus group would be unaffected over the next one year, as
there is no debt servicing requirement towards the rated NCDs. The
debt to the tune of INR3.46 billion is due for repayment on
February 5, 2024 in Agilemed and INR5.18 billion is due for
repayment on December 26, 2024 in LF including accrued interest.
The only other group debt at FYE22 was INR1.42 billion of working
capital debt at Optival. Medplus had liquid investments of about
INR6.23 billion at FYE22, which can be utilized for debt
repayments. Management expects the rated NCDs to be repaid through
refinancing or sale of investment to a third party. However, the
financial flexibility of the promoters will be a key rating
monitorable.
Medplus-Driven Group Liquidity: At a standalone level, Medplus
operates pathological laboratories business. Its pharmacy retail
business is operated by Optival. At FYE22, Medplus operated over
2,748 stores, generating a revenue of INR38 billion (FY21: INR30
billion) with an EBITDA margin of 7.2% (7.1%). While the growth in
revenue was driven primarily by the COVID-19 pandemic-led demand
(phase 2 in April and May 2021) and addition of stores, the EBITDA
margin continued to be stable with the continued increase in share
of private labels (FY22: 12.50%; FY19-FY20: 5%-6%). The working
capital cycle improved to 87 days in FY22 (FY21: 95 days) on
account of an increase in the payable period to 26 days (19 days).
Medplus's average use of INR60 million of working capital limits
was 28% during the 12 months ending November 2022.
Rating Sensitivities
Negative: A decline in the financial flexibility of the group,
impacting the ability to refinance debt can lead to a negative
rating action.
ESG Issues
ESG Factors Minimally Relevant to Rating: Unless otherwise
disclosed in this section, the ESG issues are credit neutral or
have only a minimal credit impact on LF, due to either their nature
or the way in which they are being managed by the entity. For more
information on Ind-Ra's ESG Relevance Disclosures, please click
here.
Company Profile
Incorporated in FY21, LF is a special purpose vehicle fully owned
by Gangadi Madhukar Reddy, founder promoter of Medplus through
Gangadi Investments Private Limited. LF holds 14.44% stake in
Medplus. The company does not have any operations of its own.
Founded in 2006, MedPlus is the second-largest retail pharmacy
chain in India with over 19% market share of the organized retail
pharmacy market. It has a network of over 3,328 stores spanning
across 454 cities, seven states operated majorly through own stores
(including 40 hospital pharmacies) and 90 franchised stores as of
September 30, 2022.
MAHAPRABHU RAM: CARE Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Mahaprabhu
Ram Mulkh Hi Tech Education Society (MRMHTES) continue to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 2.55 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 4.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated December 9,
2021, placed the rating(s) of MRMHTES under the 'issuer
non-cooperating' category as MRMHTES had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. MRMHTES continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated October 25, 2022, November 14,
2022 and January 2, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution
while using the above rating(s).
Mahaprabhu Ram Mulkh Hi-Tech Educational Society (MRMHTES) got
registered under the Society Registration Act- 1860 in 2005 and is
currently being managed by Mr Roshan Lal Jindal, Mrs Ritu Jindal,
Mr Mukesh Jindal, Mrs. Tamanna Jindal, Mrs Saroj Garg, Mr Rajneesh
Jindal and Mr Rohit Sharma as the trustees. The society was formed
with an objective to provide higher education in the field of
engineering, computer science and management. The society has
established five separate colleges, namely, Shree Ram Mulkh
Institute of Management and Technology, Shree Ram Mulkh Institute
of Engineering and Technology, Shree Ram Mulkh College of Technical
Education, Shree Ram Mulkh College of Education and Shree Birkha
Ram College of Education. All the colleges of MRMH are in Village
Kohra-Bhura (Bhurewala), Haryana. The different courses offered are
duly approved by AICTE (All India Council of Technical Education).
MRMH is also affiliated to Kurukshetra University, Kurukshetra
(KUK).
MAHESHWAR HYDEL: CARE Keeps D Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shree
Maheshwar Hydel Power Corporation Limited (SMHPCL) continues to
remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 451.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed rationale and key rating drivers
CARE Ratings Ltd. (CARE Ratings) had, vide its press release dated
March 31, 2018, placed the rating of SMHPCL under the 'issuer
non-cooperating' category as SMHPCL had failed to provide the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. SMHPCL continues to be non-cooperative despite
repeated requests for submission of information through email dated
December 23, 2022; December 24, 2022 and December 25, 2022. In line
with the extant SEBI guidelines, CARE Ratings has reviewed the
rating of the bank facilities on the basis of the best available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating.
CARE Ratings has also withdrawn the outstanding ratings assigned to
the Non-Convertible Debentures of SMHCPL with immediate effect, as
same has been redeemed and there is no amount outstanding under the
said facility as on date. The withdrawal of the said instrument is
based on confirmation of redemption of the respective NCDs obtained
from the debenture trustee.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The rating of long-term bank facilities of SMHPCL continues to
factor in the ongoing delays in servicing of debt obligations.
SMHPCL is setting-up 400 MW (10x40 MW) Maheshwar Hydro Power
Project on the river Narmada at Maheshwar near Mandleshwar, Madhya
Pradesh. The project was initially conceived for setting up by the
Narmada Valley Development Authority (NVDA). Later, it was
transferred to erstwhile Madhya Pradesh State Electricity Board
(MPSEB) in 1980, before awarding it to S Kumars group (the group)
as an Independent Power Project. The group created a Special
Purpose Vehicle (SPV) in 1993 in the name of SMHPCL for execution
of the project. The project entailed a total estimated cost of ~Rs.
3,939cr (originally INR 2,760 cr) to be funded in a debt to equity
mix of 70:30. The long-term Power purchase agreement (PPA) for the
project was signed in 1994 with erstwhile MPSEB (succeeded by M.P.
Power Management Co Ltd as holding company for all discoms in M.P).
The work on the project which started in the year 1998-99 was
stalled in September 2001 due to withdrawal of certain lenders
impacting the financing of the project. Consequently, SMHPCL
approached Power Finance Corporation (PFC) for sanction of debt and
the work on the project was started again in November 2005.
MAHESTALA AGRO: CARE Keeps B+ Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Mahestala
Agro Foods Private Limited (MAFPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 17.30 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 28,
2021, placed the rating(s) of MAFPL under the 'issuer
non-cooperating' category as MAFPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. MAFPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated September 13, 2022, September
23, 2022, October 3, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Kolkata-based, Mahestala Agro Foods Private Limited (MAFPL)
incorporated in April, 2009, was promoted by the Kundu family of
Kolkata, West Bengal with Mr. Nityananda Kundu being the main
promoter. MAFPL is engaged in the trading activities of agro based
food products like rice, wheat, sugar, salt, edible oil etc. MAFPL
has entered into an authorized license agreement since March, 2013
with West Bengal Public Distribution System (WBPDS) under
Government of West Bengal whereby MAFPL receives orders for supply
of food items like rice, wheat, sugar, salt etc. to WBPDS and the
company sells edible oil to local customers. This apart, the
company is also engaged in retailing of silver, gold, platinum and
diamond jewellery under a franchise agreement with Titan Industries
Limited under the brand name "Tanishq". MAFPL has two showrooms
under this agreement, located at Barasat, and Behala in Kolkata,
West Bengal. The franchise agreement with Titan Industries Limited
for Barasat and Behala showrooms are valid for a period of nine
years ending in May 2022 and March 2026 respectively.
MANJEERA CONSTRUCTIONS: Ind-Ra Hikes Long Term Issuer Rating to B-
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Manjeera
Constructions Limited's (MCL) Long-Term Issuer Rating to 'IND B-'
from 'IND D'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR67.8 mil. Fund-based working capital limit upgraded with
IND B-/Stable/IND A4 rating; and
-- INR82.2 mil. Non-fund-based working capital limit upgraded
IND A4 rating.
The upgrade reflects the timely servicing of MCL's debt during the
three months ended November 2022. However, the liquidity remains
poor.
Key Rating Drivers
The ratings reflect MCL's cost overrun risk in its three ongoing
projects; one project has almost been completed. The total cost of
the four ongoing projects is estimated to be INR11,888 million,
which is to be funded by the promoter contribution of INR2,937
million (25%), sales proceeds of INR5,168 million (43%), existing
debt of INR843 million (7%) and proposed debt of INR2,940 million
(25%). As of September 30, 2022, MCL had received promoter
contribution of INR2,744 million (93%), and sales proceeds of
INR1,487 million (29%); its existing debt stood at INR843 million
(100%). The company had incurred 40% (INR4,705 million) of the
total cost as of September 30, 2022. For the remaining construction
cost of INR7,183 million, around 56% will be funded through sales
proceeds, 41% through proposed debt and remaining 3% from promoter
contribution.
The costs of the New York Project (Bangalore), Platinum Project
(Khanamet, Hyderabad) and Manjeera Blue Project (Ongole, Andhra
Pradesh) are estimated to be about INR2,021 million, about INR6,736
million and about INR604 million, respectively; as on 30 September
2022, the cost incurred was INR328 million (16% construction),
INR1,823 million (27%), and INR49 million (8%), respectively. For
the Manjeera Monarch project (Vijayawada, Andhra Pradesh), which is
nearing completion, the estimated cost is around INR2,527 million;
of this, INR2,505 million (99% construction) had been incurred as
of September 30, 2022.
The rating also factors in the risk of time overruns, though the
projects' progress has been in line with the execution schedule so
far. Also, given the aggressively improving demand scenario, MCL
has been facing significant competition.
The ratings also reflect MCL's small scale of operations, as
indicated by revenue of INR381.3 million in FY22 (FY21: INR274.4
million). The revenue increased on the back of sales of
residential projects, engineering, procurement and construction
work and wind mill energy sales. Ind-Ra expects the revenue to
increase in FY23, led by a likely increase in sales.
The ratings are constrained by MCL's high offtake risk, given that,
as on 30 September 2022, it had not recorded any sales for its
three ongoing projects. Ind-Ra expects the booking to start soon
and believes it would pick up pace once the projects near
completion. As on 12 December 2022, only Platinum Project
(Khanamet, Hyderabad) was not registered with RERA. Manjeera
Monarch had recorded bookings of 72% (total developer's saleable
area: 526,269 square feet (sf); total developer's area sold:
381,246sf) as of September 30, 2022.
Liquidity Indicator - Poor: The fund-based limits were fully
utilized during the 12 months ended November 2022. Also, there were
instances of overutilization in June 2022 (13 days), July 2022 (8
days), August 2022 (30 days), September 2022 (22 days), October
2022 (1 day) and November 2022 (25 days). The average utilization
of the non-fund-based limits was 70.7% during the 12 months ended
November 2022. The ratings are further constrained by the company's
lack of access to the capital market. As per the management, the
debt service coverage ratio (DSCR) was 1.03x as of September 2022.
Ind-Ra expects the DSCR to improve in FY23, led by the cash
inflows from sales proceeds from the three ongoing projects;
however, lower-than-expected sales proceeds could weaken the DSCR.
For Manjeera Monarch, the loan was sanctioned by LIC Housing
Finance Limited. As per the management, there is a debt service
reserve account of INR9.9 million, which includes interest for only
two months, with Punjab National Bank (IND AAA/Stable).
The ratings are supported by the promoters' experience of more than
three decades in the real estate business, resulting into
longstanding relationship with its customers and suppliers.
The ratings are further supported by MCL's long track record, with
the company having completed around nine projects, with a total
saleable area of 2.4 million sf. Furthermore, the group has
completed around 13 projects, with a total saleable area of 5.1
million sf.
Rating Sensitivities
Negative: Lower-than-expected sales volume or lower realization
from bookings or time or cost overruns, leading to stressed cash
flows or deterioration in the liquidity, could lead to a negative
rating action.
Positive: An improvement in the sales and the timely receipt of
advances from customers, leading to stronger cash flows and
improvement in the liquidity, could lead to a positive rating
action.
Company Profile
Incorporated in1987, MCL is engaged in the developing of
residential, commercial, hospitality, and retail projects,
engineering, procurement and construction and windmill energy
projects. MCL is promoted by G. Yoganand. It is listed on the
Bombay Stock Exchange.
MEENAKSHI ENERGY: Ind-Ra Affirms 'D' Bank Loan Rating
-----------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Meenakshi Energy
Limited's (MEL) bank loan ratings at 'IND D (ISSUER NOT
COOPERATING)'. The issuer did not participate in the rating
exercise, despite continuous requests and follow-ups by the agency.
Thus, the rating is based on the best available information.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings.
The detailed instrument-wise rating actions are:
-- INR10.570 bil. Senior bank loan phase I (Long-term) affirmed
with IND D (ISSUER NOT COOPERATING) rating;
-- INR23,311.7 bil. Senior bank loan phase II (Long-term)
affirmed with IND D (ISSUER NOT COOPERATING) rating; and
-- INR11.310 bil. Additional term loan (Long-term) affirmed with
IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information.
Key Rating Drivers
The affirmation reflects MEL's continued delays in debt servicing.
The company is undergoing the corporate insolvency resolution
process and is being managed by a resolution professional.
Rating Sensitivities
Positive: Clarity on business continuity and timely debt servicing
for at least three consecutive months will lead to a positive
rating action.
Company Profile
MEL, founded by the Meenakshi Group of companies, is implementing
coal-based thermal power plants of 300MW (2 X 150MW) and 700MW (2 X
350MW) in two phases in the coastal area of Thaminappatnam in
Andhra Pradesh at a cost of INR14,280 million and INR50,050
million, respectively. The phase I of the project has been
operational since April 2013, while the phase II is under
construction.
METTU CHINNA: CARE Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Mettu
Chinna Mallareddy Godowns (MCMG) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.27 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 0.23 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 22,
2021, placed the rating(s) of MCMG under the 'issuer
non-cooperating' category as MCMG had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. MCMG
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated October 8, 2022, October 18, 2022, October 28,
2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Andhra Pradesh based, Mettu Chinna Mallareddy Godowns (MCMG) was
established as a partnership firm in the year 2011 and promoted by
Mr. Ch. Venkata Krishna Rao and Mrs. Ch. Lakshmi. The firm is
engaged in providing ware house for lease rental purpose to Andhra
Pradesh State Warehousing Corporation. The property is built on
total land area of 18 acres comprising of nine godowns having
storage capacity for food crops like paddy around 45000 MT and each
godown having storage capacity of 5000MT.
MOTIL DEVI: CARE Keeps B- Debt Rating in Not Cooperating
--------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Motil Devi
Organic Food Industries Private Limited (MDOFIPL) continues to
remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.39 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 22,
2021, placed the rating(s) of MDOFIPL under the 'issuer
non-cooperating' category as MDOFIPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. MDOFIPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated September 7, 2022, September
17, 2022, September 27, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Motil Devi Organic Food Industries Pvt Ltd (MDOFIPL), incorporated
in December 2012 by one Mr. Deepak Wadhvani of Raipur, is engaged
in the business of manufacturing of ice cream. The company started
its commercial operation since April 2014 with an installed
capacity of 15,00,000 litres per annum. The company market its
products under the brand name of "Mental" in and around Raipur. Mr
Deepak Wadhvani, Director, looks after the day to day operations of
the company with adequate support from other director and a team of
experienced personnel.
MURALIKRISHNA CONSTRUCTION: CARE Keeps B- Rating in Not Cooperating
-------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of
Muralikrishna Construction Company (MCC) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 22,
2021, placed the rating(s) of MCC under the 'issuer
non-cooperating' category as MCC had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. MCC
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated October 8, 2022, October 18, 2022, October 28,
2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Telangana based, Muralikrishna Construction Company (MCC) was
established in the year 1991 by Mr. Murali Krishna (Managing
Partner) along with other family members. MCC is engaged in the
civil construction works like construction of railway bridges. The
firm undertakes civil contract works for Railway department. MCC
purchases the raw material from local traders depending on the
project location. The firm receives orders by participating in
tenders of government projects with respect to railway department.
N.V. KHAROTE: CARE Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of N.V.
Kharote Constructions Private Limited (NKCPL) continue to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 7.83 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 26,
2021, placed the rating(s) of NKCPL under the 'issuer
non-cooperating' category as NKCPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. NKCPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated October 12, 2022, October 22,
2022, November 1, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Pune (Maharashtra) based NVKCPL, incorporated in 1997 was promoted
by Mr. Ratnakar Narhar Kharote and Mr. Sanjay Narhar Kharote. The
company is engaged in construction of canals and other irrigation
projects for various government departments like Water Resources
Department and Municipal Corporations. NVKCPL is a registered
government contractor {Class- I-A (Without Limit)} with Public
Works Department.
PACIFIC JUTE: Ind-Ra Moves BB+ Rating in Non-Cooperating
--------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
Pacific Jute Limited to the non-cooperating category as per Ind
Ra's policy on Issuer Non-Cooperation, following non-submission of
No Default Statement continuously for 8 months despite continuous
requests and follow-ups by the agency and also IND-Ra's inability
to validate timely debt servicing through other sources it
considers reliable. No Default Statement in the format prescribed
by SEBI is required to be shared by the issuer every month as a
confirmation that all financial obligations are being serviced on
time., Investors and other users are advised to take appropriate
caution while using these ratings. The rating will now appear as
'IND BB+ (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR170 mil. Fund Based Working Capital Limit migrated to non-
cooperating category with IND BB+ (Issuer Not Cooperating)
rating.
Company Profile
Incorporated in 2005 by the Kolkata-based Pawan Kumar Agarwal, PJL
manufactures and exports jute products. It has an export-oriented
unit in Falta, West Bengal. The company is part of the Mohan Group
Limited.
PARAMOUNT BLANKETS: CARE Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Paramount
Blankets Private Limited (PBPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 21.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Long Term/ 1.00 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 14,
2021, placed the rating(s) of PBPL under the 'issuer
non-cooperating' category as PBPL had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. PBPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated August 30, 2022, September 9, 2022, September
19, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Paramount Blankets Private Limited (PBPL) was incorporated as a
private limited company in 2004 by Mr. Sat Bhusan, Mr. Mukesh Gupta
and Mr. Rakesh Dayal. The company is engaged in manufacturing and
trading of blankets such as mink blanket, polar fleece blanket,
coral fleece blanket, etc. In addition to this, the company also
undertakes job work i.e., manufacturing of blankets wherein the raw
material is provided by its associate concern namely Paramount
Impex Private Limited (PIP).
PAS TRADING: Ind-Ra Assigns B- LT Issuer Rating, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned PAS Trading House
(PAS) a Long-Term Issuer Rating of 'IND B-'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR224.00 mil. Fund-based working capital limits assigned with
IND B-/Stable/IND A4 rating;
-- INR10.00 mil. Non-fund-based working capital limits assigned
with IND A4 rating; and
-- INR80.4 mil. Term loan due on January 2033 assigned with IND
B-/Stable rating.
Key Rating Drivers
The ratings reflect PAS's moderate credit metrics with its gross
interest coverage (operating EBITDA/gross interest expenses)
reducing to 1.03x in FY22 (FY21: 1.07x) and the net leverage (total
adjusted net debt/operating EBITDAR) rising to 10.43x (9.51x), due
to a decline in its absolute EBITDA to INR35.76 million (INR41.26
million). In FY23, Ind-Ra expects the credit metrics to remain at
the similar level, due to the similar level of its operations.
PAS has a small scale of operations, with its revenue increasing to
INR673.23 million in FY22 (FY21: INR368.70 million), due to a
recovery in its business after COVID-19 disruptions. As of 8MFY23,
PAS booked revenue of INR457.4 million. In FY23, Ind-Ra expects the
revenue to remain at the similar level with a moderate growth in
line with the industry.
The ratings also factor in PAS's modest EBITDA margin of 5.31% in
FY22 (FY21: 11.19%), due to a substantial increase in paper prices
after the COVID-19 lockdowns and PAS's ability to sell its
inventory at higher prices. In FY22, the margin normalized due to
regular operations. The return on capital employed was 7.3% in
FY22 (FY21: 9.3%). In FY23, Ind-Ra expects the EBITDA margin to
remain at the similar level, due to the similar level of its
operations.
Liquidity Indicator - Poor: PAS's average maximum utilization of
the fund-based limits was 97.02% and the non-fund-based limits was
35% during the 12 months ended October 2022, with an instance of
overutilization up to three days due to interest charged by its
bank. PAS has loan repayment obligations of INR29.8 million for
FY23 and INR31.9 million for FY24. The cash flow from operations
improved to INR22.91 million in FY22 (FY21: negative INR80.8
million), due to a favorable change in the working capital.
Furthermore, the free cash flow stood at INR20.16 million (FY21:
negative INR82.0 million). The net working capital cycle remained
elongated at 217 days in FY22 (FY21: 417 days), due to a reduction
in its inventory days to 179 days (300 days). The cash and cash
equivalents stood at INR2.14 million at FYE22 (FYE21: INR2.4
million). PAS does not have any capital market exposure and relies
on banks and financial institutions to meet its funding
requirements.
However, the ratings are supported by the promoters' nearly two
decades of experience in the paper industry, leading to established
relationships with customers as well as suppliers.
Rating Sensitivities
Positive: An increase in the scale of operations, along with an
improvement in the overall credit metrics with the gross interest
coverage exceeding 1.2x and an improvement in the liquidity
profile, all on a sustained basis, could lead to a positive rating
action.
Negative: A decline in the scale of operations, leading to a
deterioration in the overall credit metrics and/or further pressure
on the liquidity position, could lead to a negative rating action.
Company Profile
PAS was established in 2015 as a partnership firm by Mr. Sunil
Khanna, Mrs. Alka Khanna and Mr. Puranjay Khanna, in Mumbai,
Maharashtra, and engages in the trading of papers such as coated
wood free paper, printing paper, label paper, specialty paper,
packaging paper, among others that are 100% domestically supplied.
PRATIBHA SYNTHEX: Ind-Ra Keeps BB Issuer Rating in Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Pratibha Syntex
Limited's Long-Term Issuer Rating in the non-cooperating category.
The issuer did not participate in the rating exercise despite
continuous requests and follow-ups by the agency. Therefore,
investors and other users are advised to take appropriate caution
while using these ratings. The rating will continue to appear as
'IND BB (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR2,592.4 bil. Term loan due on FY22 maintained in non-
cooperating category with IND BB (ISSUER NOT COOPERATING)
rating;
-- INR2.70 bil. Fund-based working capital facilities maintained
in non-cooperating category with IND BB (ISSUER NOT
COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating; and
-- INR200 mil. Non-fund-based working capital facilities
maintained in non-cooperating category with IND A4+ (ISSUER
NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
July 11, 2020. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
Company Profile
Established in 1997, Pratibha Syntex is promoted by S. K.
Chaudhary. The company has gradually increased its presence across
the textile value chain and has a fully integrated facility,
including spinning (cotton & blended yarn), knitting (cotton grey
fabric), dyeing (cotton dyed fabric) & garmenting (casual wear &
inner wear) in Pithampur, Madhya Pradesh.
PUSHPAVATHI AGRO-TECH: CARE Cuts Rating on INR9cr LT Loan to B-
---------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Sri Pushpavathi Agro-Tech Private Limited (SPAPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 19,
2021, placed the rating(s) of SPAPL under the 'issuer
non-cooperating' category as SPAPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. SPAPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated September 4, 2022, September
14, 2022, September 24, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of SPATPL have been
revised on account of non-availability of requisite information.
The ratings also factored decline in scale of operations and
continued net losses in FY22 compare to FY21.
Andhra Pradesh based, Sri Pushpavathi Agro-Tech Private Limited
(SPAPL) was incorporated in 2014 and promoted by Mr. N.
Venkateswarlu and his family member. The company is planning to
provide cold storage facilities i.e., for preserving agricultural
products like pulses, chillies, turmeric etc. at Narsaraopet,
Guntur Dist. Andhra Pradesh. The proposed customers of the company
include farmers and local traders. The company is planning to set
up the cold storage capacity of 10,000 metric tonnes. Apart from
providing cold storage facility the company is also planning to
engage in processing and packaging of Chilli powder. Current
installed capacity for the processing and packaging of chilli
powder is 4 tons per day.
RAM COTTEX: Ind-Ra Moves B+ Rating in Non-Cooperating
-----------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
Shree Ram Cottex Industries Private Limited to the non-cooperating
category as per Ind Ra's policy on Issuer Non-Cooperation,
following non-submission of No Default Statement continuously for
10 months despite continuous requests and follow-ups by the agency
and also IND-Ra's inability to validate timely debt servicing
through other sources it considers reliable. No Default Statement
in the format prescribed by SEBI is required to be shared by the
issuer every month as a confirmation that all financial obligations
are being serviced on time., Investors and other users are advised
to take appropriate caution while using these ratings. The rating
will now appear as 'IND B+ (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating action is:
-- INR300 mil. Fund Based Working Capital Limit migrated to non-
cooperating category with IND B+ (Issuer Not Cooperating)/
IND A4 (Issuer Not Cooperating) rating.
Company Profile
SRCIPL is engaged in cotton ginning and pressing to produce cotton
bales and cotton seeds. Its 60,000 bales per annum manufacturing
plant is located at Gondal in Rajkot, Gujarat.
RAMANI ICECREAM: CARE Lowers Rating on INR50.01cr LT Loan to D
--------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Ramani Icecream Company Limited (RICL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 50.01 CARE D; Revised from CARE B;
Facilities Stable
Detailed rationale and key rating drivers
The revision in the rating assigned to the bank facilities of RICL
takes into account irregularities in servicing of its debt
obligations on the back of its poor liquidity.
Rating sensitivities
Positive Factors - Factors that could lead to positive rating
action/upgrade:
* Establishing a track record of timely servicing of debt
obligations for a period of at least 90 days
Detailed description of the key rating drivers
Key rating weaknesses
* On-going delays in debt servicing: As per interaction with lender
and information received from the company, its debt servicing
remained irregular due to poor liquidity.
Liquidity: Poor
Liquidity position of RICL remained poor marked by on-going delay
in repayment of debt obligation on the back of slack winter season
coupled with difficulties in realization of inventory and debtors
on time.
Further, RICL's gross current asset days remained elongated at 341
days in FY22 while the company reported cash loss of INR5.25 crore
in FY22 as against scheduled debt repayment of around INR8.00 crore
in FY23. It has elongated operating cycle of 261 days in FY22 on
the back of high inventory days of 311 days. Furthermore, free cash
and bank balance remained at INR1.36 crore as on March 31, 2022.
Ramani Icecream Company Limited (RICL; CIN: U15544MP1991PLC006612)
was established by Bhopal-based Ramani group. Initially constituted
as Ramani Icecream Company Private Limited in 1991, it was later
converted into a public limited company (closely held) in 2011.
Founded by Late Mr. Balchand Kukreja, Ramani group is engaged in
manufacturing of ice cream since 1970. RICL sells its products
under the brand name of Top 'N Town which has dominant presence in
Madhya Pradesh and good presence in states like Maharashtra,
Chhattisgarh, Orissa and Uttar Pradesh. As on March 31, 2022, RICL
had daily production capacity of 1,25,000 MT for manufacturing of
ice cream at its two plants located in Bhopal, Madhya Pradesh and
Durg, Chhattisgarh.
RELIANCE CAPITAL: NCLT Stays Resolution Process on Torrent's Plea
-----------------------------------------------------------------
Outlook India reports that the insolvency process of debt-ridden
Reliance Capital Ltd (RCL) on Jan. 3 hit a roadblock as the NCLT
Mumbai has stayed the resolution process on the plea of Torrent
Group.
According to Outlook India, the stay order was issued by the
National Company Law Tribunal (NCLT) as the Ahmedabad-based Torrent
Group challenged the revised bid from Hinduja Group, sources said.
Torrent Group, which emerged as the highest bidder with an INR8,640
crore offer, had moved the NCLT-Mumbai against Hinduja Group's late
revised bid, which it had submitted after the completion of the
e-auction process on December 21.
A day after the e-auction, Hinduja Group, the promoter of IndusInd
Bank, revised its offer from INR8,110 crore to INR9,000 crore,
Outlook India says.
This is the first time that an e-auction of this scale is taking
place for the resolution of an NBFC (non-banking financial company)
under the Insolvency and Bankruptcy Code (IBC).
Outlook India says the decision of e-auction was taken at the
behest of LIC and EPFO, which together control 35 per cent of the
voting rights in the CoC.
Torrent claimed that Hinduja's revised offer, after the e-auction,
is illegal and non-compliant. The NCLT has asked the administrator
to file a reply on Torrent's application, sources said.
The hearing is now scheduled for the next week.
Meanwhile, lenders of RCL in its meeting discussed the resolution
plans of both bidders - Torrent Group and Hinduja Group, Outlook
India reports.
According to Outlook India, Torrent also wants the Committee of
Creditors (CoC) to allow it a charge on RCL assets for securing
deferred financing, sources said, adding, lenders will continue to
engage with the bidders.
CoC has also decided to file an extension application with NCLT to
extend the resolution process completion timeline from January 31
to February 15, 2023, Outlook India notes.
About Reliance Capital
Headquartered in Mumbai, India, Reliance Capital Limited --
https://www.reliancecapital.co.in/ -- a non-banking financial
company, primarily engages in lending and investing activities in
India, Singapore, and Mauritius. The company operates through
Finance & Investment, General Insurance, Life Insurance, Commercial
Finance, Home Finance, and Others segments. It offers life, health,
and general insurance products; brokerage and distribution
services, including stock broking, wealth management, and third
party distribution; and commercial and home finance services, such
SME, retail, microfinance, renewable, affordable housing, and home
loans, as well as loans against property and construction finance.
The company also provides asset reconstruction, institutional
broking, and proprietary investments services, as well as other
financial and allied services. The company was formerly known as
Reliance Capital & Finance Trust Limited and changed its name to
Reliance Capital Limited in January 1995.
On Nov. 29, 2021, the Reserve Bank of India superseded Reliance
Capital's board following payment defaults and governance issues,
and appointed Nageswara Rao Y as the administrator for the
bankruptcy process, Financial Express said. The regulator also
filed an application for initiation of Corporate Insolvency
Resolution Process (CIRP) against the company before the National
Company Law Tribunal's (NCLT) Mumbai bench.
In an order dated Dec. 6, 2021 of the National Company Law
Tribunal, Mumbai (NCLT), corporate insolvency resolution process
has been initiated against Reliance Capital as per the provisions
of the Insolvency and Bankruptcy Code (IBC), 2016.
Reliance Capital owes its creditors over INR19,805 crore, majority
of the amount through bonds under the trustee Vistra ITCL India,
The Economic Times of India said.
In February this year, RBI appointed administrator invited EoIs for
sale of Reliance Capital assets and subsidiaries.
RR COTTONS: Ind-Ra Moves 'B' Rating in Non-Cooperating
------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
RR Cottons to the non-cooperating category as per Ind Ra's policy
on Issuer Non-Cooperation, following non-submission of No Default
Statement continuously for 9 months despite continuous requests and
follow-ups by the agency and also IND-Ra's inability to validate
timely debt servicing through other sources it considers reliable.
No Default Statement in the format prescribed by SEBI is required
to be shared by the issuer every month as a confirmation that all
financial obligations are being serviced on time., Investors and
other users are advised to take appropriate caution while using
these ratings. The rating will now appear as 'IND B (ISSUER NOT
COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR150 mil. Fund Based Working Capital Limit migrated to non-
cooperating category with IND B (Issuer Not Cooperating) /
IND A4 (Issuer Not Cooperating) rating; and
-- INR7.9 mil. Term loan due on May 31, 2024 migrated to non-
cooperating category with IND B (Issuer Not Cooperating) /
IND A4 (Issuer Not Cooperating) rating.
Company Profile
RRC was established in July 2016. It is involved in the
manufacturing, ginning and pressing of cotton in Adilabad, Andhra
Pradesh.
RRR CONSTRUCTIONS: Ind-Ra Moves BB Rating in Non-Cooperating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
RRR Constructions & Projects Private Limited to the non-cooperating
category as per Ind Ra's policy on Issuer Non-Cooperation,
following non-submission of No Default Statement continuously for 7
months despite continuous requests and follow-ups by the agency and
also IND-Ra's inability to validate timely debt servicing through
other sources it considers reliable. No Default Statement in the
format prescribed by SEBI is required to be shared by the issuer
every month as a confirmation that all financial obligations are
being serviced on time., Investors and other users are advised to
take appropriate caution while using these ratings. The rating will
now appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR160 mil. Non-Fund Based Working Capital Limit migrated to
non-cooperating category with IND A4+ (Issuer Not
Cooperating) rating;
-- INR140 mil. Fund Based Working Capital Limit migrated to non-
cooperating category with IND BB (Issuer Not Cooperating) /
IND A4+ (Issuer Not Cooperating) rating;
-- INR60 mil. Fund Based Working Capital Limit migrated to non-
cooperating category with IND BB (Issuer Not Cooperating) /
IND A4+ (Issuer Not Cooperating) rating; and
-- INR140 mil. Non-Fund Based Working Capital Limit migrated to
non-cooperating category with IND A4+ (Issuer Not
Cooperating) rating.
Company Profile
Established in 2015, Hyderabad-based RRR focuses mainly on roads,
pipes, buildings, flyover projects, structure projects, national
highways, irrigation and canals, road-over-bridges and related
maintenance works. It has presence in Telangana, Andhra Pradesh and
Karnataka.
SAI ENGICON: CARE Lowers Rating on INR5.0cr LT Loan to B
--------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Sai Engicon And Construction Private Limited (SECPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.00 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B+; Stable
Short Term Bank 25.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 25,
2021, placed the rating(s) of SECPL under the 'issuer
non-cooperating' category as SECPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. SECPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated September 10, 2022, September
20, 2022, September 30, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of SECPL have been
revised on account of non-availability of requisite information.
Incorporated in May 2007, Sai Engicon and Construction Private
Limited (SECPL) were promoted by Mr. Ritesh Ranjan Singh, Mr. Arjun
Yadav, Mr. Rakesh Kumar Singh and Mr. Sujeet Kumar Singh. The
company has been engaged in civil construction activities in the
segment like construction of buildings, bridges, tunnels, roads,
etc. The company is classified as Class – 1 contractor by Public
Works Division, Bihar which indicates that the company can
participate for higher value contracts released by government
departments. SECPL participates in tenders and executes orders for
the Public Works Department (Bihar), Rural Works Department
(Bihar), etc.
SHAKSHI COIR: CARE Keeps B+ Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shakshi
Coir Products Private Limited (SCPPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.90 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 18,
2021, placed the rating(s) of SCPPL under the 'issuer
non-cooperating' category as SCPPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. SCPPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated September 3, 2022, September
13, 2022, September 23, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Lucknow, Uttar Pradesh based Shakshi Coir Products Private Limited
(SCP) was incorporated in 2001. The company was promoted by Mrs.
Pooja Gupta and Mrs. Seema Gupta. The company is being managed by
Mr. Ramsharan Gupta (Chairman), Mr. Anil Tiwari (CEO), Mr. Rajeev
Kumar Gupta (Finance) and Mr. Anand Kumar Gupta (Marketing). SCP is
engaged in the manufacturing of Rubberized Coir products like multi
layered mattresses, cushions, pillows, carpet under lays, bus
Seats, backRest, auto seats, furniture cushioning block etc. SCP
has its manufacturing facilities located at Raibareilly, Uttar
Pradesh.
SIDDHARTHA INNOPAK: Ind-Ra Assigns BB- Long Term Issuer Rating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Siddhartha
Innopack Industries Private Limited (SIIPL) a Long-Term Issuer
Rating of 'IND BB-'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR150 mil. Fund-based working capital limits assigned with
IND BB-/Stable/IND A4+ rating;
-- INR104.85 mil. Term loan due on June 2026 assigned with IND
BB-/Stable rating.
Key Rating Drivers
The ratings reflect SIIPL's small scale of operations. The revenue
grew to INR852.81 million in FY22 (FY21: INR734.46 million), due to
an increase in the order flow. Till 1HFY23, SIIPL booked revenue of
INR530 million. Ind-Ra expects the revenue to improve in FY23 as
well, due to a continuous demand for the company's end-product.
The ratings also factor in SIIPL's modest EBITDA margin of 4.58% in
FY22 (FY21: 7.47%) with a return on capital employed of 4.1%
(10.3%), as it faces stiff competition. The margin declined in FY22
due to an increase in direct expenses. Ind-Ra expects the EBITDA
margin to remain at similar levels in FY23.
The ratings also reflect SIIPL's weak credit metrics, as reflected
by the interest coverage (operating EBITDA/gross interest expenses)
of 1.35x in FY22 (FY21: 2.42x) and the net leverage (total adjusted
net debt/operating EBITDAR) of 6.76x (4.43x). The metrics
deteriorated in FY22 due to an increase in the debt levels. Ind-Ra
expects the credit metrics to improve in FY23 and beyond due to
repayment of loans of INR18.98 million in FY23, INR30.37 million in
FY24 and INR29.70 million in FY25.
Liquidity Indicator - Stretched: SIIPL's average maximum
utilization of the fund-based limits was 98.61% during the 12
months ended October 2022. The cash flow from operations rose to
INR71.55 million in FY22 (FY21: INR29.79 million) due to an
increase in creditor days. The free cash flow improved to INR50.36
million in FY22 (FY21: negative INR2.90 million). The net working
capital cycle elongated to 81 days in FY22 (FY21: 68 days) due to
an increase in the debtor days. The cash and cash equivalents fell
to INR0.43 million at FY22 (FY21: INR6.16 million). Furthermore,
SIIPL does not have any capital market exposure and relies on banks
and financial institutions to meet its funding requirements.
However, the ratings are supported by the promoters' nearly 10
years of experience in the packaging industry. This has facilitated
the company to establish strong relationships with customers as
well as suppliers.
Rating Sensitivities
Positive: An increase in the scale of operations, along with an
improvement in the overall credit metrics, with net leverage below
5.5x, and liquidity profile, all on a sustained basis, could lead
to a positive rating action.
Negative: A decline in the scale of operations, leading to
deterioration in the overall credit metrics and/or further pressure
on the liquidity position, could lead to a negative rating action.
Company Profile
Incorporated in 2011, SIIPL manufactures biaxially-oriented
polypropylene bags, polypropylene woven bags and fabric bags. Their
factory with an installed capacity of around 200,000 bags/day is
located in Veeravalli, Andhra Pradesh.
T G R PROJECTS: CARE Keeps B- Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of T G R
Projects India Private Limited (TGRPIPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 32.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 29,
2021, placed the rating(s) of TGRPIPL under the 'issuer
non-cooperating' category as TGRPIPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. TGRPIPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated September 14, 2022, September
24, 2022, October 4, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Bengaluru (Karnataka) based, T G R Projects India Private Limited
(TGRPIPL) was incorporated in the year 2012 by Mr. Gopal Reddy, Mr
Aravind Reddy, Mrs. Aruna Devi, Mr. Mansukhlal Patel and others.
The company began commercial operation in 2014 and is currently
engaged in the construction of residential apartments in
Bangalore.
TAJSHREE CARS: CARE Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Tajshree
Cars Private Limited (TCPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 14.85 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 17,
2021, placed the rating(s) of TCPL under the 'issuer
non-cooperating' category as TCPL had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. TCPL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated October 3, 2022, October 13, 2022, October 23,
2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
TCPL was established in the year 2013. The company is an authorized
dealer for the four wheelers of Honda Cars India Limited (Honda) in
Nagpur region.
TEJAS ISPAT: CARE Keeps B- Debt Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Tejas Ispat
Private Limited (TIPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 27,
2021, placed the rating(s) of TIPL under the 'issuer
non-cooperating' category as TIPL had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. TIPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated September 12, 2022, September 22, 2022, October
2, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Tejas Ispat Private Limited (TIPL) was incorporated in May 2006 by
the Malhotra family of Jamshedpur, Jharkhand for setting of an iron
& steel manufacturing plant. The manufacturing plant of the company
will consist of furnace division and a rolling division and the
same are proposed to be located at Adiyapur Industrial Area,
Jamshedpur in Jharkhand with installed capacity for ingots of
36,500 metric ton per annum and 21,900 metric ton per annum of
structural steels. TIPL has already set up the rolling division
entirely funded by the promoters and presently setting up furnace
division with aggregate project cost of INR6.89 crore. Mr Kailash
Malhotra has around four decades of experience in iron and steel
industry will look after the day-to-day operations of the company.
He will be supported by his son: Mr Vivek Malhotra who is also has
around seven years of experience in steel industry.
TELAWNE POWER: Ind-Ra Moves BB+ Rating in Non-Cooperating
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
Telawne Power Equipments Pvt. Ltd. to the non-cooperating category
as per Ind Ra's policy on Issuer Non-Cooperation, following
non-submission of No Default Statement continuously for 7 months
despite continuous requests and follow-ups by the agency and also
IND-Ra's inability to validate timely debt servicing through other
sources it considers reliable. No Default Statement in the format
prescribed by SEBI is required to be shared by the issuer every
month as a confirmation that all financial obligations are being
serviced on time., Investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR90 mil. Fund Based Working Capital Limit migrated to non-
cooperating category with IND BB+ (Issuer Not Cooperating) /
IND A4+ (Issuer Not Cooperating) rating; and
-- INR 190 mil. Non-Fund Based Working Capital Limit migrated to
non-cooperating category with IND A4+ (Issuer Not
Cooperating) rating.
Company Profile
Incorporated in 2004, Telawne manufactures power distribution
transformers at its manufacturing units located in Rabale and
Taloja in Navi Mumbai, Maharashtra.
TRIVENI WIRES: Ind-Ra Moves BB+ Rating in Non-Cooperating
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
Triveni Wires Private Limited to the non-cooperating category as
per Ind Ra's policy on Issuer Non-Cooperation, following
non-submission of No Default Statement continuously for 10 months
despite continuous requests and follow-ups by the agency and also
IND-Ra's inability to validate timely debt servicing through other
sources it considers reliable. No Default Statement in the format
prescribed by SEBI is required to be shared by the issuer every
month as a confirmation that all financial obligations are being
serviced on time., Investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR 220 mil. Term loan due on Mar 31, 2024 migrated to non-
cooperating category with IND BB+ (Issuer Not Cooperating)
rating; and
-- INR 200 mil. Fund Based Working Capital Limit migrated to non-
cooperating category with IND BB+ (Issuer Not Cooperating) /
IND A4+ (Issuer Not Cooperating) rating.
Company Profile
TWPL was incorporated on 8 December 1981 in Nagpur. The company is
engaged in manufacturing and supplying a wide assortment of round
cable armor, flat cable armor, medium coated galvanized wire,
commercial graded galvanized wire, MS/HB wire, MS annealed binding
wire and barbed wire under its own brand name MICON wire.
TRIVIKRAMA MEDICAL: Ind-Ra Moves BB+ Rating in Non-Cooperating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
Trivikrama Medical Services Private Limited to the non-cooperating
category as per Ind Ra's policy on Issuer Non-Cooperation,
following non-submission of No Default Statement continuously for 8
months despite continuous requests and follow-ups by the agency and
also IND-Ra's inability to validate timely debt servicing through
other sources it considers reliable. No Default Statement in the
format prescribed by SEBI is required to be shared by the issuer
every month as a confirmation that all financial obligations are
being serviced on time., Investors and other users are advised to
take appropriate caution while using these ratings. The rating will
now appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating action is:
-- INR 70 mil. Term loan Migrated to non-cooperating category
with IND BB +(Issuer Not Cooperating) rating.
Company Profile
TMSPL was incorporated on May 15, 2012 and operates Neuro one
Hospital, a single specialty hospital, providing services in
neurosurgery, neuro anesthesia, neuro radiology, neuro
rehabilitation and neuropsychiatry. The directors of TMSPL are
Vijay Kumar Sivaramamoorthy, Kota Ramgopal and Easwaran
Ramakrishna.
TRN ENERGY: Ind-Ra Moves 'D' Debt Rating in Non-Cooperating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated TRN Energy Private
Limited's debt instruments to the non-cooperating category. The
issuer did not participate in the rating exercise despite
continuous requests and follow-ups by the agency. Therefore,
investors and other users are advised to take appropriate caution
while using these ratings. The ratings will now appear as 'IND D
(ISSUER NOT COOPERATING)' on the agency's website.
The detailed rating actions are:
-- INR28,156.90 bil. (INR26,457.9 bil. outstanding as of June 30,
2021) Term loan (Long-term) due on January 15, 2038 migrated
to non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating;
-- INR2,412.5 bil. (USD38.21 mil.) External commercial borrowing
(ECB; long-term)^ migrated to non-cooperating category with
IND D (ISSUER NOT COOPERATING) rating;
-- INR2,050.0 bil. Fund-based limits (Long-term) migrated to non-
cooperating category with IND D (ISSUER NOT COOPERATING)
rating;
-- INR2,250.0 bil. Non-fund-based limits (Long-term) migrated to
non-cooperating category with IND D (ISSUER NOT COOPERATING)
rating; and
-- INR700 mil. Loan equivalent risk (Long-term) migrated to non-
cooperating category with IND D (ISSUER NOT COOPERATING)
rating.
^Conversion rate as per hedged rate of USD1 = INR63.13
Note: ISSUER NOT COOPERATING; The ratings were last reviewed on
November 12, 2021. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
Company Profile
Incorporated on November 17, 2006, TRN Energy has developed a 600MW
(2 x 300MW) coal-based thermal power plant in Raigarh district,
Chhattisgarh.
ULTRA DENIM: Ind-Ra Lowers LongTerm Issuer Rating to BB
-------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Ultra Denim
Private Limited's Long-Term Issuer Rating to 'IND BB (ISSUER NOT
COOPERATING) from 'IND BBB- (ISSUER NOT COOPERATING)'.
The instrument-wise rating actions are:
-- INR405 mil. Fund-based working capital limits downgraded with
IND BB (ISSUER NOT COOPERATING)/ IND A4+ (ISSUER NOT
COOPERATING) rating;
-- INR15 mil. Non-fund-based working capital limits downgraded
with IND A4+ (ISSUER NOT COOPERATING) rating; and
-- INR433.35 mil. Term loans due on June 2024 downgraded with IND
BB (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Key Rating Drivers
The downgrade is pursuant to the Securities and Exchange Board of
India's circular SEBI/HO/MIRSD/CRADT/CIR/P/2020/2 dated January 3,
2020. As per the circular, any issuer with an investment grade
rating remaining non-cooperative with a rating agency for more than
six months should be downgraded to a sub-investment grade rating.
The current outstanding rating of 'IND BB (ISSUER NOT COOPERATING)'
might not reflect Ultra Denim's credit strength as the company has
been non-cooperative with the agency since May 2, 2022. Therefore,
investors and other users are advised to take appropriate caution
while using these ratings.
Company Profile
Ultra Denim was established in 2011 by Bhogibhai L Patel and
commenced commercial operations in 2015. The company manufactures
denim fabric.
VASWANI INDUSTRIES: Ind-Ra Keeps B+ Rating in Non-Cooperating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Vaswani
Industries Limited's Long-Term Issuer Rating of 'IND B+' in the
non-cooperating category and has simultaneously withdrawn it.
The instrument-wise rating actions are:
-- INR400 mil. Fund-based working capital limit* maintained in
non-cooperating category and withdrawn; and
-- INR320 mil. Non-fund-based limits# maintained in non-
cooperating category and withdrawn.
*Maintained at 'IND B+ (ISSUER NOT COOPERATING)' before being
withdrawn
#Maintained at 'IND A4 (ISSUER NOT COOPERATING)' before being
withdrawn
Key Rating Drivers
Ind-Ra has maintained the ratings in the non-cooperating category
because the issuer did not participate in the rating exercise,
despite requests by the agency and has not provided information
pertaining to the full-year financial performance for the past
four years, sanctioned bank facilities and utilization levels,
business plan and projections for next three years, information on
corporate governance, and management certificate.
Ind-Ra is no longer required to maintain the ratings, as the agency
has received a no-objection certificate from the lenders. This is
consistent with the Securities and Exchange Board of India's
circular dated March 31, 2017 for credit rating agencies. Ind-Ra
will no longer provide analytical and rating coverage
Company Profile
Incorporated in 2003, VIL generates power and manufactures sponge
iron, steel billets and ingots in Raipur.
VENKATESWARA AND COMPANY: Ind-Ra Moves B- Rating in NonCooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
Sri Venkateswara and Company to the non-cooperating category as per
Ind Ra's policy on Issuer Non-Cooperation, following non-submission
of No Default Statement continuously for 9 months despite
continuous requests and follow-ups by the agency and also IND-Ra's
inability to validate timely debt servicing through other sources
it considers reliable. No Default Statement in the format
prescribed by SEBI is required to be shared by the issuer every
month as a confirmation that all financial obligations are being
serviced on time., Investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND B- (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating action is:
-- INR 250 mil. Non-Fund Based Working Capital Limit migrated to
non-cooperating category with IND A4 (Issuer Not Cooperating)
rating.
Company Profile
Located in Tenkasi (Tamil Nadu), SVC is a partnership firm trading
timber logs and sawn sizes, and purchasing them domestically and
internationally.
VGP MARINE: Ind-Ra Moves 'BB' Loan Rating to Non-Cooperating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
VGP Marine Kingdom Private Limited to the non-cooperating category
as per IndRa's policy on Issuer Non-Cooperation, following
non-submission of No Default Statement continuously for 7 months
despite continuous requests and follow-ups by the agency and also
IND-Ra's inability to validate timely debt servicing through other
sources it considers reliable. No Default Statement in the format
prescribed by SEBI is required to be shared by the issuer every
month as a confirmation that all financial obligations are being
serviced on time., Investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR 206.25 mil. Working Capital Term Loan due on Jun 30, 2027
migrated to non-cooperating category with IND BB (Issuer Not
Cooperating) rating; and
-- INR 399.85 mil. Term loan due on Dec. 31, 2027 migrated to
non-cooperating category with IND BB (Issuer Not Cooperating)
rating.
Company Profile
VGPMKPL, incorporated in February 2012 began commercial operations
from April 2019. It operates an underwater aquarium in Chennai with
a total built-up area of 75,098 square feet. VGPMKPL is a part of
the VGP group. The kingdom is divided into five zones, viz
rainforest, gorge, mangrove, coastal and the deep ocean with 4,000
species of underwater creatures.
VIKAS SILKS: Ind-Ra Moves B+ Rating in Non-Cooperating
------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
Vikas Silks to the non-cooperating category as per Ind Ra's policy
on Issuer Non-Cooperation, following non-submission of No Default
Statement continuously for 11 months despite continuous requests
and follow-ups by the agency and also IND-Ra's inability to
validate timely debt servicing through other sources it considers
reliable. No Default Statement in the format prescribed by SEBI is
required to be shared by the issuer every month as a confirmation
that all financial obligations are being serviced on time.,
Investors and other users are advised to take appropriate caution
while using these ratings. The rating will now appear as 'IND B+
(ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR30.90 mil. Term loan due on Aug 31, 2024 migrated to non-
cooperating category with IND B+ (Issuer Not Cooperating)
rating; and
-- INR70 mil. Fund Based Working Capital Limit migrated to non-
cooperating category with IND B+ (Issuer Not Cooperating) /
IND A4 (Issuer Not Cooperating) rating.
Company Profile
VS, a proprietorship firm, is engaged in the retailing of women
readymade apparels. The firm is headed by Rajasekar. It operates
through two retail shops located at Sankarankovil and Rajapalayam,
in Tamil Nadu.
VRG INDUSTRIES: Ind-Ra Moves 'B+' Rating in Non-Cooperating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
VRG Industries Private Limited to the non-cooperating category as
per Ind Ra's policy on Issuer Non-Cooperation, following
non-submission of No Default Statement continuously for 7 months
despite continuous requests and follow-ups by the agency and also
IND-Ra's inability to validate timely debt servicing through other
sources it considers reliable. No Default Statement in the format
prescribed by SEBI is required to be shared by the issuer every
month as a confirmation that all financial obligations are being
serviced on time., Investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating action is:
-- INR 100 mil. Fund Based Working Capital Limit migrated to non-
cooperating category with IND B+ (Issuer Not Cooperating)/
IND A4 (Issuer Not Cooperating) rating
Company Profile
Incorporated in 2017, VRGPVT is based out of Orissa as a micro,
small & medium enterprises unit and its registered office is
situated at Visakhapatnam. It manufactures gas cylinders.
ZEE ENTERTAINMENT: IndusInd's Insolvency Petition Not Maintainable
------------------------------------------------------------------
BQ Prime reports that Zee Entertainment Enterprises Ltd. has
contested the maintainability of the insolvency process initiated
by IndusInd Bank Ltd. before the National Company Law Tribunal.
The company has claimed that the default in question occurred in
October 2020, when the Insolvency Code was suspended, and so the
bank's application should be dismissed, the report relates.
In light of the Covid-19 pandemic, the government had suspended the
period from March 2020 to December 2020 for the purpose of
initiating corporate insolvency, BQ Prime says. Any default that
occurred during such period cannot be the basis of initiating
insolvency, the notification said.
IndusInd Bank had initiated insolvency proceedings against Zee in
February last year for defaulting under a Debt Service Reserve
Account Agreement between the bank and Siti Networks Ltd., to which
Zee was also a party, BQ Prime recalls.
BQ Prime relates that the company, under the agreement, had
guaranteed a term loan of INR150 crore extended to Siti Networks by
IndusInd. According to the terms of the agreement, Zee had provided
a limited guarantee to maintain an amount equal to one quarter's
interest and one quarter's principal at all times in the account
for the purpose of servicing Siti's debts.
According to IndusInd Bank, Siti has failed to maintain this amount
since September 2019 and since then has been in continuing default.
As a guarantor, Zee is liable for Siti's debt and hence this
petition, the bank told the court, the report states.
But, according to Zee, there's no default until the guarantee is
explicitly invoked by the bank, BQ Prime states. The communications
by IndusInd Bank in September 2019 and later in March 2020 merely
inform the company about a shortage of INR69 lakh in the account
and does not categorically invoke the guarantee.
Also, the communication in April 2020 suggests that the bank
intends to invoke the guarantee, thereby confirming that the
guarantee was not invoked until then, Zee's counsel Zal
Andhyarujina told the NCLT.
A crystallised claim for repayment of debt amounting to INR83 crore
was only made in October 2020, a period which is explicitly
excluded under the Code for initiating insolvency process and
should therefore be dismissed, BQ Prime says. Also, the default
amount is INR69 lakh—an amount well below the minimum default
required to initiate insolvency, Andhyarujina argued.
BQ Prime adds that Zee is also in a legal tussle with IDBI Bank
Ltd. under a similar agreement for the default of INR150 crore, for
which corporate insolvency has been initiated before NCLT Mumbai.
Based in Mumbai, India, Zee Entertainment Enterprises Limited,
together with its subsidiaries, engages in broadcasting satellite
television channels.
=================
S I N G A P O R E
=================
ALPRE INSURANCE: Creditors' Proofs of Debt Due on Feb. 6
--------------------------------------------------------
Creditors of Alpre Insurance Pte. Ltd. are required to file their
proofs of debt by Feb. 6, 2023, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Dec. 27, 2022.
The company's liquidators are:
Ong Kok Yeong David
Tay Tuan Leng
c/o Tricor Singapore Pte. Ltd.
80 Robinson Road #02-00
Singapore 068898
AVAX ASIA: Creditors' Proofs of Debt Due on Feb. 6
--------------------------------------------------
Creditors of Avax Asia Pte. Ltd. are required to file their proofs
of debt by Feb. 6, 2023, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Dec. 28, 2022.
The company's liquidators are:
Ong Kok Yeong David
Tay Tuan Leng
c/o Tricor Singapore Pte. Ltd.
80 Robinson Road #02-00
Singapore 068898
NEMRE INSURANCE: Creditors' Proofs of Debt Due on Feb. 6
--------------------------------------------------------
Creditors of Nemre Insurance Pte. Ltd. are required to file their
proofs of debt by Feb. 6, 2023, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Dec. 27, 2022.
The company's liquidators are:
Ong Kok Yeong David
Tay Tuan Leng
c/o Tricor Singapore Pte. Ltd.
80 Robinson Road #02-00
Singapore 068898
RYBURN INT'L: Creditors' Proofs of Debt Due on Feb. 5
-----------------------------------------------------
Creditors of Ryburn International Pte. Ltd. are required to file
their proofs of debt by Feb. 5, 2023, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Dec. 22, 2022.
The company's liquidator is Farooq Ahmad Mann of M/s Mann &
Associates PAC.
SIRE INSURANCE: Creditors' Proofs of Debt Due on Feb. 6
-------------------------------------------------------
Creditors of Sire Insurance Pte. Ltd. are required to file their
proofs of debt by Feb. 6, 2023, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Dec. 27, 2022.
The company's liquidators are:
Ong Kok Yeong David
Tay Tuan Leng
c/o Tricor Singapore Pte. Ltd.
80 Robinson Road #02-00
Singapore 068898
TANTRAMAR PTE: Creditors' Proofs of Debt Due on Feb. 5
------------------------------------------------------
Creditors of Tantramar Pte. Ltd. are required to file their proofs
of debt by Feb. 5, 2023, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Dec. 22, 2022.
The company's liquidator is Farooq Ahmad Mann of M/s Mann &
Associates PAC.
UGLYFOOD: Closes Down Shop After 7 Years
----------------------------------------
Channel News Asia reports that UglyFood, the local start-up with a
stated mission to reduce food waste, is closing down close to seven
years after its launch.
CNA relates that the online grocer said it was winding up as it was
"unable to raise the funds required to grow further", in an
Instagram post on Jan. 4.
It is holding a closing down walk-in sale at its shop at Gambas
Crescent until Jan. 8. Online orders on its website have stopped,
and all deliveries from Jan. 4 onwards are being refunded.
The company told customers on its Telegram channel that it was
"almost a one man show at this point".
"Might restart the whole thing in future," it added.
UglyFood started out as a school project and took in blemished and
excess fruits from importers, supermarkets and wholesalers.
In 2021, the company told CNA it had saved 200 tonnes of food since
it was founded in 2016.
On social media, it has educated the public on food waste issues
using illustrations and animations. These included tips on the
shelf life of different fruits and vegetables, and how to keep them
fresh.
UglyFood previously raised US$120,000 in a pre-seed round, CNA
discloses citing business data provider Crunchbase.
Customers reacted to the news of UglyFood's closure with
disappointment. Many on social media asked if the company would
accept crowdfunding to keep afloat.
"Your business and what (you all) stand for is so important
especially in a world where food wastage is so prevalent!"
commented one user.
"Great work bringing awareness to sustainability and hope you make
a comeback soon," said another.
Food waste is one of Singapore's largest waste streams, with
817,000 tonnes generated in 2021.
UglyFood was among a crop of local start-ups aimed at tackling the
problem, also including treatsure, CRUST Group and Good For Food.
*********
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 2023. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000.
*** End of Transmission ***