/raid1/www/Hosts/bankrupt/TCRAP_Public/230112.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, January 12, 2023, Vol. 26, No. 10
Headlines
A U S T R A L I A
COOPER UTILITIES: Second Creditors' Meeting Set for Jan. 19
FORTICODE RESEARCH: Second Creditors' Meeting Set for Jan. 17
FTX TRADING: Australian Firms Dragged Into Ftx Bankruptcy Saga
HALLBUILD PTY: First Creditors' Meeting Set for Jan. 17
MEDIA HEROES: Second Creditors' Meeting Set for Jan. 19
OZ ONLINE: First Creditors' Meeting Set for Jan. 19
STOCKPAY NOMINEES: First Creditors' Meeting Set for Jan. 19
SUCCESSFUEL SOLUTIONS: First Creditors' Meeting Set for Jan. 19
SUN CABLE: First Creditors' Meeting Set for Jan. 20
C H I N A
KAISA GROUP: Says Annual Reports Pending Final Review
ZENSUN GROUP: Moody's Withdraws 'B3' Corporate Family Rating
[*] CHINA: To Tighten Scrutiny of Firms' Foreign Debt Next Month
I N D I A
AR LANDMARK: Ind-Ra Withdraws 'B+' LongTerm Issuer Rating
ARS AGRO: Ind-Ra Withdraws 'B' Long Term Issuer Rating
AVANTIKA CONTRACTORS: Ind-Ra Lowers Long Term Issuer Rating to BB
BALARKA FABRICON: CARE Keeps B Debt Rating in Not Cooperating
BANARAS SWARN: CARE Keeps B- Debt Rating in Not Cooperating
BANSAL RICE: CARE Keeps D Debt Rating in Not Cooperating Category
BAPASHREE AGRO: Ind-Ra Withdraws B+ Long Term Issuer Rating
BHAGWATI WOVEN: CARE Withdraws B+ Long Term Debt Rating
BNH INFRA: Ind-Ra Hikes Long Term Issuer Rating to 'BB'
CAROL INFO: Ind-Ra Cuts LT Issuer Rating to BB+, Outlook Stable
CGR COLLATERAL: CARE Keeps D Debt Rating in Not Cooperating
CRYSTAL SEA: Ind-Ra Withdraws 'D' Long Term Issuer Rating
DHABALESWAR TRADERS: CARE Keeps B- Debt Rating in Not Cooperating
DREAM WEAVER: CARE Assigns B+ Rating to INR1cr LT Loan
DTC SECURITIES: Ind-Ra Withdraws BB Long Term Issuer Rating
DYNAMIC ENGINEERS: CARE Lowers Rating on INR10cr LT Loan to B
ESSPAL INTERNATIONAL: Ind-Ra Keeps BB+ Rating in NonCooperating
GLOWMORE FINANCE: Ind-Ra Assigns 'B+' Bank Loan Rating
GOEL TRADERS: CARE Lowers Rating on INR2cr LT Loan to B-
GOLDSTAR POLYMERS: CARE Keeps D Debt Ratings in Not Cooperating
GREENTECH MEGA: CARE Lowers Rating on INR24.05cr LT Loan to D
GUPTA FOODS: CARE Keeps C Debt Rating in Not Cooperating Category
GVG KRAFT: Ind-Ra Moves BB+ Issuer Rating to Non-Cooperating
ICA EDUSKILLS: CARE Reaffirms B+ Rating on INR13.25cr LT Loan
INDO NABIN: CARE Reaffirms C/A4 Rating on INR5.0cr LT/ST Loan
JOONTOLLEE TEA: Ind-Ra Assigns 'B+' Long Term Issuer Rating
KANAK DEKA: Ind-Ra Withdraws B+ Long Term Issuer Rating
KANNATTU FINGOLD: Ind-Ra Hikes Bank Loan Rating to B+
KHAMMAM SPICE: Ind-Ra Withdraws BB- Long Term Issuer Rating
LAXMI COTSPIN: Ind-Ra Withdraws BB+ Long Term Issuer Rating
MAA SHEETLA: CARE Keeps B- Debt Rating in Not Cooperating Category
MARKOLINES INFRA: Ind-Ra Moves BB+ Rating to Non-Cooperating
MERRITO POLYMERS: CARE Lowers Rating on INR5cr LT Loan to B-
MUKTI FIRMS: CARE Keeps B- Debt Rating in Not Cooperating
NAAGAAMI INFRATECH: Ind-Ra Withdraws 'BB-' Long Term Issuer Rating
NATURAL PRODUCT: Ind-Ra Withdraws BB- Long Term Issuer Rating
NEOTECH FOUNDRIES: CARE Keeps B- Debt Rating in Not Cooperating
NIPKO TRADELINKS: Ind-Ra Withdraws 'BB' Long Term Issuer Rating
OMKARA BUSINESS: CARE Keeps B- Debt Rating in Not Cooperating
PAWANKUMAR KEDIA: Ind-Ra Withdraws BB Long Term Issuer Rating
POPULAR GROUP: CARE Keeps D Debt Rating in Not Cooperating
R.S. FOODS: CARE Keeps B- Debt Rating in Not Cooperating Category
RADIUS ESTATES: Adani Nears Purchase of Builder at 98% Discount
RAJKAMAL PETROL: CARE Assigns B Rating to INR6cr LT Loan
RAM NIWAS: CARE Lowers Rating on INR2cr Long Term Loan to B-
RAM URBAN: NCLAT Upholds Removal of Resolution Professional
SAHYADRI HOSPITALS: Ind-Ra Withdraws 'BB' Long Term Issuer Rating
SAI BALAJI: CARE Keeps D Debt Rating in Not Cooperating Category
SAI ENTERPRISES: Ind-Ra Withdraws BB Long Term Issuer Rating
SALAS PHARMACEUTICALS: CARE Keeps B- Rating in Not Cooperating
SANVIJAY INFRASTRUCTURES: Ind-Ra Withdraws BB LT Issuer Rating
SCORE INFORMATION: Ind-Ra Hikes Long Term Issuer Rating to 'BB-'
SHAKTI RICE: CARE Keeps B- Debt Rating in Not Cooperating Category
SHANKAR RAMCHANDRA: Ind-Ra Moves BB+ Rating to Non-Cooperating
SHIV SHAKTI: CARE Keeps B- Debt Rating in Not Cooperating Category
SHIV SHAKTI: Ind-Ra Withdraws 'B' Long Term Issuer Rating
SILVERSTONE ELASTOMER: Ind-Ra Withdraws B- LT Issuer Rating
SREEALANKAR GOLD: Ind-Ra Withdraws B+ Long Term Issuer Rating
SURYA TELECOM: CARE Keeps B- Debt Rating in Not Cooperating
SWAMIJI TRANSMISSION: Ind-Ra Withdraws B+ Long Term Issuer Rating
USHAHKAL ABHINAV: Ind-Ra Hikes Long Term Issuer Rating to BB+
UTTAR BHARAT: Ind-Ra Withdraws BB Long Term Issuer Rating
V. SATYA: CARE Keeps C Debt Rating in Not Cooperating Category
VASUDHA AGRO: Ind-Ra Withdraws 'B+' Long Term Issuer Rating
VIKRAM TRADERS: CARE Keeps B- Debt Rating in Not Cooperating
J A P A N
ANA HOLDINGS: Egan-Jones Retains CCC Senior Unsecured Ratings
RAKUTEN GROUP: S&P Affirms BB Rating on $500MM Sr. Unsecured Bond
M A L A Y S I A
SERBA DINAMIK: High Court Allows Winding-up of Company, 3 Units
N E W Z E A L A N D
AWESOME AWNINGS: Creditors' Proofs of Debt Due on Feb. 17
FEDERATION HOMES: BDO Tauranga Limited Appointed as Liquidator
MACWAL LIMITED: Creditors' Proofs of Debt Due on Jan. 25
MY TRUSTEE: Creditors' Proofs of Debt Due on Jan. 20
THIS IS ELECTRIC: Waterstone Appointed as Administrator
P A K I S T A N
PAKISTAN: Staring at Bankruptcy as Forex Reserves Dive to 8-Yr Low
S I N G A P O R E
HU AN CABLE: Creditors' Meetings Set for Feb. 27
PHILLIP STREET: Creditors' Proofs of Debt Due on Feb. 6
STRAITS PACOM: Creditors' Proofs of Debt Due on Feb. 6
YANG KEE: Court to Hear Judicial Management Petition on Jan. 19
ZAOBAO.COM LTD: Creditors' Proofs of Debt Due on Feb. 6
S R I L A N K A
SRI LANKA: Says Treasury Running Dry, Cuts Spending
- - - - -
=================
A U S T R A L I A
=================
COOPER UTILITIES: Second Creditors' Meeting Set for Jan. 19
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Cooper
Utilities Pty Ltd has been set for Jan. 19, 2023 at 11:00 a.m. via
videoconference facilities only.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Jan. 18, 2023 at 5:00 p.m.
David Trim and Brent Kijurina of Hall Chadwick were appointed as
administrators of the company on Jan. 19, 2023.
FORTICODE RESEARCH: Second Creditors' Meeting Set for Jan. 17
-------------------------------------------------------------
A second meeting of creditors in the proceedings of Forticode
Research Pty Ltd and Forticode Australia Pty Ltd has been set for
Jan. 17, 2023 at 10:00 a.m. at the offices of WLP Restructuring at
Suite 21.02, Level 21 Australia Square, 264 George Street in Sydney
and 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. 16, 2023 at 4:00 p.m.
Glenn Livingstone and Alan Walker of WLP Restructuring were
appointed as administrators of the company on Dec. 2, 2022.
FTX TRADING: Australian Firms Dragged Into Ftx Bankruptcy Saga
--------------------------------------------------------------
The Sydney Morning Herald reports that a number of Australian
companies including top-tier law firm Clayton Utz, Atlassian,
National Australia Bank and some local fintechs have been dragged
into FTX's US bankruptcy proceedings, as investigators seek more
information about the crypto group's global activities.
According to the report, documents filed in Delaware's bankruptcy
court in late December show hundreds of businesses and government
departments globally that have been contacted by corporate
investigation firm Kroll, which is seeking more information about
FTX and its debtors after its spectacular collapse in November.
FTX, which had been among the world's largest crypto exchanges,
filed for bankruptcy protection in the US last year in one of the
highest profile crypto blow-ups after traders pulled US$6 billion
from the platform in three days and rival exchange Binance
abandoned a rescue deal.
Founder Sam Bankman-Fried was arrested in the Bahamas on December
12 after US prosecutors filed an indictment accusing him of
spearheading a years-long fraud through the cryptocurrency
exchange. He has pleaded not guilty to criminal charges and is
likely to face trial in October, which is expected to be one of the
most high-profile white-collar fraud trials in recent years.
FTX and its affiliated companies appointed Kroll to oversee it as
its claims agent to assist as it navigates the US bankruptcy
process, with the restructuring administration firm working to
ensure any interested parties are notified of developments.
SMH says the Australian firms listed in the US court documents as
having been contacted by Kroll include Sydney-based law firm
Clayton Utz, which is representing global parent FTX Group and its
interests in Australia, and Atlassian, which did not comment.
SMH relates that NAB said while it had no partnerships,
relationships with or exposure to FTX, it had a rental guarantee
bond through a company FTX acquired locally in 2021 that it holds
full deposit security for.
Another Australian company, Moneytech, is also mentioned several
times in the document, however the company believes the
administrators are trying to reach Monoova, which used to be part
of Moneytech, SMH relay. Monoova, a payments platform, does not
hold digital currency but a number of its clients likely had
dealings with FTX.
Australian payments business Cuscal is also mentioned. A
spokeswoman said they were not, and never had been, a banking
partner for or provided any services to FTX, and there were no FTX
customer funds with Cuscal, but clients sometimes used an
"off-system BSB" service to allocate virtual account numbers to
their clients to ensure that deposits can be automatically
reconciled, SMH says.
"This uses a Cuscal BSB and settles in aggregate to a Cuscal
client's account," she said. "Deposits to FTX may have been made
via use of a Cuscal BSB. The bankruptcy executors may have
accordingly incorrectly considered this to be an account of FTX at
Cuscal."
According to SHM, Perth-based outfit Goldfields Money was also
listed in the document but did not respond to request for comment.
In Australia, KordaMentha has been appointed the administrator for
FTX's Australian entities, SMH notes. It said almost 30,000
Australian customers have lost "significant property" in the
collapse. They also found $42 million in the accounts of the two
entities, FTX Australia and FTX Express.
About FTX Group
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell
itself to its giant rival Binance, but Binance walked away from the
deal the next day amid reports on FTX regarding mishandled customer
funds and alleged US agency investigations.
At 4:30 a.m. on Nov. 11, 2022, Bankman-Fried ultimately agreed to
step aside, and restructuring vet John J. Ray III was quickly named
new CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
million in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year. According to Reuters, SBF
shared a document with investors on Nov. 10 showing FTX had $13.86
billion in liabilities and $14.6 billion in assets. However, only
$900 million of those assets were liquid, leading to the cash
crunch that ended with the company filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims
agent, maintaining the page
https://cases.ra.kroll.com/FTX/Home-Index
Lawyers at Paul Weiss represented SBF but later renounced
representing the entrepreneur due to a conflict of interest.
Morris, Nichols, Arsht & Tunnell LLP and Eversheld Sutherland (US)
LLP are representing the Ad Hoc Group of Non-U.S. Customers of
FTX.com.
The Official Committee of Unsecured Creditors tapped Paul Hastings
as counsel.
HALLBUILD PTY: First Creditors' Meeting Set for Jan. 17
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Hallbuild
Pty Ltd Pty Ltd, trading as Hallbury Homes, will be held on Jan.
17, 2023, at 10:00 a.m. at the offices of Frankston RSL at 183
Cranbourne Road in Frankston and via virtual meeting technology.
Michael Caspaney of Menzies Advisory was appointed as administrator
of the company on Jan. 5, 2023.
MEDIA HEROES: Second Creditors' Meeting Set for Jan. 19
-------------------------------------------------------
A second meeting of creditors in the proceedings of Media Heroes
Pty Ltd has been set for Jan. 19, 2023 at 3:00 p.m. at the offices
of Rapsey Griffiths at Level 5, 55-57 Hunter Street in Newcastle,
and via virtual meeting technology.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Jan. 18, 2023 at 4:00 p.m.
Mitchell Griffiths of Rapsey Griffiths Turnaround + Advisory was
appointed as administrator of the company on Dec. 5, 2022.
OZ ONLINE: First Creditors' Meeting Set for Jan. 19
---------------------------------------------------
A first meeting of the creditors in the proceedings of Oz Online
Group Pty Ltd, trading as syntricate.com.au, will be held on Jan.
19, 2023, at 9:30 a.m. at Suite 2, Level 5, 3 Horwoord Place in
Parramatta, and via virtual meeting technology.
Neil Cussen and Jeremy Nipps of Cor Cordis were appointed as
administrators of the company on Jan. 9, 2023.
STOCKPAY NOMINEES: First Creditors' Meeting Set for Jan. 19
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of Stockpay
Nominees Pty Ltd and Stockpay Pty Ltd will be held on Jan. 19,
2023, at 10:00 a.m. and 11:00 a.m. respectfully, via Microsoft
Teams only.
Desmond Teng and John Refalo of Moore Recovery were appointed as
administrators of the company on Jan. 9, 2023.
SUCCESSFUEL SOLUTIONS: First Creditors' Meeting Set for Jan. 19
---------------------------------------------------------------
A first meeting of the creditors in the proceedings of Successfuel
Solutions Pty Ltd will be held on Jan. 19, 2023, at 11:00 a.m. via
BPS teleconference facilities.
David Henry Sampson and Maxwell William Prentice of BPSR were
appointed as administrators of the company on Jan. 9, 2023.
SUN CABLE: First Creditors' Meeting Set for Jan. 20
---------------------------------------------------
A first meeting of the creditors in the proceedings of Sun Cable
Pty Ltd will be held on Jan. 20, 2023, at 11:00 a.m. at the offices
of FTI Consulting at Level 22, Gateway, 1 Macquarie Place in Sydney
and via electronic means only.
David McGrath, Christopher Hill and John Park of Moore Recovery
were appointed as administrators of the company on Jan. 10, 2023.
=========
C H I N A
=========
KAISA GROUP: Says Annual Reports Pending Final Review
-----------------------------------------------------
The Standard reports that Kaisa Group said that its auditor is
making a final review of the group annual results for 2021.
The developer is also working on the interim results for the six
months ending June 2022.
According to The Standard, Kaisa will continue to focus on
protecting the delivery progress of its property projects and
maintaining the normal operations of the company.
Additionally, it will continue to cooperate with brand partners -
including state-owned enterprises - in developing its property
projects, implementing measures to safeguard and realize the value
of those projects and control administrative costs and capital
expenditure, the report relays.
The Standard relates that the developer said its financial adviser
has continued to engage in dialogue with offshore creditors,
including, but not limited to, the holders of the US
dollar-denominated senior notes issued by the company.
The group is also in the process of evaluating its capital
structure and liquidity so that a holistic solution can be reached
with all of its offshore creditors as soon as practicable.
The trading in its shares will continue to be suspended, the report
notes.
Kaisa Group Holdings Ltd engages in real estate development in
China, including urban redevelopment projects in the GBA. As of
June 30, 2021, the company's land bank comprised an aggregate gross
floor area of 31.1 million square meters of saleable resources
across over 50 cities in China.
As reported in the Troubled Company Reporter-Asia Pacific, on Oct.
13, 2022, Moody's Investors Service has withdrawn Kaisa Group
Holdings Ltd's Ca corporate family rating and its C senior
unsecured ratings. Prior to the withdrawal, the rating outlook was
negative.
ZENSUN GROUP: Moody's Withdraws 'B3' Corporate Family Rating
------------------------------------------------------------
Moody's Investors Service has withdrawn Zensun Group Limited's B3
corporate family rating and Zensun Enterprises Limited's Caa1
senior unsecured rating.
Prior to the withdrawal, the rating outlook was negative.
RATINGS RATIONALE
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.
COMPANY PROFILE
Founded in 1995, Zensun is a real estate developer headquartered in
Zhengzhou, Henan province, focusing on the development and sale of
residential properties in Zhengzhou.
Zensun is a private company owned by Huang Yanping, who is the wife
of Zensun's Chairman Zhang Jinguo. Its subsidiary, Zensun
Enterprises Limited, was listed on the Hong Kong Stock Exchange in
2015 through a backdoor listing.
[*] CHINA: To Tighten Scrutiny of Firms' Foreign Debt Next Month
----------------------------------------------------------------
Bloomberg News reports that China's new regulation to increase
scrutiny of companies' foreign debt will become effective Feb. 10
in the market's biggest overhaul since 2015.
The effort will encompass debt instruments with tenors of over one
year that are sold by Chinese firms or their controlled offshore
entities, according to a Jan. 10 announcement on the National
Development and Reform Commission's website, Bloomberg relays.
According to Bloomberg, the proposal from the country's top
economic planning body was made public in August as Chinese
companies' offshore bond delinquencies soared to record highs amid
a liquidity crisis in the property sector. Defaults on foreign
notes totaled $46.5 billion last year, according to data compiled
by Bloomberg, versus $13.9 billion in 2021.
Bloomberg says firms to date have only been asked to register
offshore-bond issuance plans with the NDRC. Under the new
regulation, borrowers will be required to register, report and
receive approval for selling such debt. Chinese companies will also
have to regularly submit information including their use of
fundraising proceeds to the commission and report major situations
that may impact debt repayment.
"The main purpose of the new rules is to limit local government
financing vehicles' excess borrowings offshore," Bloomberg quotes
Zhaopeng Xing, senior China strategist at ANZ Bank China Co., as
saying.
Another notable change is that defaulted Chinese corporations might
be able to apply for foreign debt sales, Bloomberg relays.
Companies that take on foreign borrowings should meet certain
criteria including having a good credit profile and debt-repayment
ability while also having no bonds or other debt instruments that
are delinquent or in default, Bloomberg relates citing 2015
regulations and August's preliminary proposal. Jan. 10's statement
didn't include those conditions, potentially opening the door for
cash-strapped firms to tap an offshore market that's been largely
shut to them.
The move could help developers that have defaulted on offshore
debt, but whether they will be able to sell new bonds overseas
ultimately depends on market acceptance, Xing added, Bloomberg
relays.
Current policies "can't fully match" new trends as Chinese
companies' offshore financing has undergone changes in recent
years, the NDRC said in the statement. It added the new rule will
improve post-issuance regulation and strengthen risk prevention.
=========
I N D I A
=========
AR LANDMARK: Ind-Ra Withdraws 'B+' LongTerm Issuer Rating
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn AR Landmark LLP's
(ARL) Long-Term Issuer Rating of 'IND B+ (ISSUER NOT
COOPERATING)'.
Ind-Ra has withdrawn ARL's issuer ratings, following the withdrawal
of the provisional instrument ratings on July 9, 2021.
Company Profile
Registered in September 2017, ARL is undertaking the construction
of a residential real estate project, Vetro Apartments, in Wadgaon
Sheri, Pune.
ARS AGRO: Ind-Ra Withdraws 'B' Long Term Issuer Rating
------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn A.R.S. Agro
Business Private Limited's (ARS) Long-Term Issuer Rating of 'IND B
(ISSUER NOT COOPERATING)'.
Key Rating Drivers
Ind-Ra has withdrawn ARS's issuer rating following the withdrawal
of the provisional instrument ratings on July 9, 2021.
Company Profile
ARS is setting up a flour mill in Chandauli district, Uttar Pradesh
with wheat processing capacity of 48,000 tons per annum.
AVANTIKA CONTRACTORS: Ind-Ra Lowers Long Term Issuer Rating to BB
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Sri Avantika
Contractors (I) Ltd.'s Long-Term Issuer Rating to 'IND BB (ISSUER
NOT COOPERATING) from 'IND BBB- (ISSUER NOT COOPERATING)'.
The instrument-wise rating actions are:
-- INR250 mil. Fund-based working capital limits downgraded with
IND BB (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT
COOPERATING) rating; and
-- INR1.820 bil. Non-fund-based working capital limits downgraded
with IND A4+ (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 Sri Avantika Contractors' credit strength as the
company has been non-cooperative with the agency since June 30,
2022. Therefore, investors and other users are advised to take
appropriate caution while using these ratings.
Company Profile
Established in 2005, Sri Avantika Contractors (I) is a
Hyderabad-based civil contracting company promoted by K Narendar
Reddy. It executes irrigation projects such as canals and dams, as
well as airports, roads, hydro-electric power projects, and group
housing schemes across India.
BALARKA FABRICON: CARE Keeps B Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Balarka
Fabricon Private Limited (BFPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.51 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 1.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 29,
2021, placed the rating(s) of BFPL under the 'issuer
non-cooperating' category as BFPL 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. BFPL
continues to be noncooperative 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).
Balarka Fabricon Private Limited (BFPL) was incorporated in 2010
and promoted by Mr. Surendra Kumar Gulati, Mr. Lalit Kumar and Mr.
Sushil Jain. The company is engaged in the manufacturing of hoist
and cranes, mild steel (M.S.) structures and construction of
pre-engineering buildings (PEB). It also does job work for
galvanizing the steel products and undertakes turnkey projects in
the field of construction, telecommunication, infrastructure, etc.
The raw material used in manufacturing of the products are
iron/steel sheet, bar, round, angle, pipe etc. which are procured
by the company domestically.
BANARAS SWARN: CARE Keeps B- Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Banaras
Swarn Kala Kendra Private Limited (BSKKPL) continues to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 29,
2021, placed the rating(s) of BSKKPL under the 'issuer
non-cooperating' category as BSKKPL 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.
BSKKPL 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).
BSK was incorporated in 1994 as a private limited company. BSK is
promoted by Mr Ashok Jaiswal, Mr Sunil Jaiswal, Mr Anil Jaiswal and
Mr Manoj Jaiswal. The company is engaged in retail trading of
diamond-studded gold jewellery, gold jewellery, pearls and precious
stones studded gold jewellery (necklaces, earrings, rings, pendants
and bangles) and silver jewellery. BSK has its retail
outlet/showroom located at Varanasi, Uttar Pradesh.
BANSAL RICE: CARE Keeps D Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Bansal Rice
Mills (BRM) continues 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
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 23,
2021, placed the rating(s) of BRM under the 'issuer
non-cooperating' category as BRM 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. BRM
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated October 9, 2022, October 19, 2022, October 29,
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).
Bansal Rice Mill (BRM) was established in April, 2007 as a
partnership firm and is currently being managed by Mr Sandeep
Kumar, Mr Amandeep Bansal, Mr Badri Prasad, Mrs Rashmi Bansal and
Mrs Manisha Bansal as its partners sharing profit and loss equally.
The firm is engaged in processing of paddy and milling of rice at
its manufacturing facility located at Sangrur (Punjab).
BAPASHREE AGRO: Ind-Ra Withdraws B+ Long Term Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Bapashree Agro
Private Limited's (BAPL) Long-Term Issuer Rating of 'IND B+ (ISSUER
NOT COOPERATING)'.
Key Rating Drivers
Ind-Ra has withdrawn BAPL's Long-Term Issuer Rating following the
withdrawal of the provisional instrument ratings on July 9, 2021.
Company Profile
Incorporated in 2009, BAPL is primarily engaged in the processing,
milling and trading of rice and wheat.
BHAGWATI WOVEN: CARE Withdraws B+ Long Term Debt Rating
-------------------------------------------------------
CARE has reaffirmed and simultaneously withdrawn the outstanding
rating of 'CARE B+; Stable; ISSUER NOT COOPERATING/CARE A4; ISSUER
NOT COOPERATING assigned to the bank facilities of Bhagwati Woven
Private Limited (BWPL) with immediate effect.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ - Rating continues to remain
Short Term under ISSUER NOT COOPERATING
Bank Facilities category; Reaffirmed at
CARE B+; Stable/CARE A4;
ISSUER NOT COOPERATING and
Withdrawn
Long Term - Rating continues to remain
Bank Facilities under ISSUER NOT COOPERATING
category; Reaffirmed at
CARE B+; Stable; ISSUER NOT
COOPERATING and Withdrawn
Rating assigned to the bank facilities of BWPL continue to be
constrained on account company's small scale of operation with low
profitability, leveraged capital structure with weak debt coverage
indicators, presence in highly competitive and fragmented industry
coupled with susceptibility of operating margins to raw material
price fluctuation. The ratings however draw comfort from
experienced management with location advantage. The rating
withdrawal is at the request of BWPL and 'No Objection Certificate'
received from the bank that has extended the facilities rated by
CARE.
Detailed description of the key rating drivers
At the time of last rating July 29, 2022 the following were the
rating weaknesses and strengths (updated from information available
from BWPL):
Key Rating Weaknesses
* Small scale of operations with low profitability: The company has
reported growth of 23.60% in its scale of operation during FY22
albeit remained small marked by its total operating income of
INR32.40 crore as against INR26.20 crore during FY21 (Rs. 19.54
crore during FY20). Profitability margins declined on account of
increase in direct expenses during the year and remained low marked
by PBILDT margin of 6.57% during FY22 against 7.61% during FY21.
However, the same has been improved in absolute terms with increase
in scale of operations. Further, due to higher interest costs and
depreciation costs, BWPL reported a net loss during FY22 as against
Net profit of INR0.41 crore in FY21.
* Leveraged capital structure with weak debt coverage indicators:
The capital structure has deteriorated owing to increase in total
debt level as on balance sheet date and was leveraged marked by
overall gearing ratio of 3.90x as on March 31, 2022 as against
3.28x as on March 31, 2021. As a result of low profitability and
leveraged gearing position, debt coverage indicators have remained
weak marked by interest coverage ratio of 1.77x during FY22 as
against 1.68x during FY21 and Total debt/GCA of 15.26 years as on
March 31, 2022 as against 15.31 years as on March 31, 2021.
* Presence in highly competitive and fragmented industry coupled
with susceptibility of operating margins to raw material price
fluctuation: The Indian poly woven sacks industry is characterized
by high fragmentation and competitive intensity, resulting from low
capital intensity and technical complexity along with lower product
differentiation. Small players face high degree of competition
largely due to presence of unorganized sector and fragmented nature
of industry. Further, raw material used by BWPL is a derivative of
crude oil. Thereby any adverse fluctuation in crude oil prices is
likely to impact the profitability margins of BWPL.
Key Rating Strengths
* Experienced promoter: BWPL is managed by three active directors
namely Mr. Ashok Mundhara, Mr. Ghanshyam Mundhara and Mr. Daudyal
Mundhara. All the directors are holding an average experience of
more than a decade of experience. All the directors are
collectively looking after overall management of the company.
* Location Advantage: The manufacturing facility of BWPL is located
at Bareja near Ahmedabad. The location provides proximity to
sources of material access and smooth supply of its products at
competitive prices and lower logistic expenditure (both on the
transportation and storage) and also enjoys good road, rail and air
connectivity leading to better lead time and facilitating delivery
of finished products in a timely manner.
Ahmedabad (Gujarat) based, BWPL was incorporated as a Private
Limited Company in 2010. Currently the company is managed by three
directors named Mr. Ghanshyam Mundhara, Mr. Ashok Mundhara and Mr.
Daudyal Mundhara. The company is engaged into manufacturing of HDPE
(High Density Polythelyne) & PP (Polypropylene) woven fabrics
(laminated and nonlaminated) and tarpaulin. The company started its
commercial operations in July 2011 from its manufacturing facility
located at Bareja, Ahmedabad.
BNH INFRA: Ind-Ra Hikes Long Term Issuer Rating to 'BB'
-------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded BNH Infra Projects
(India) Private Limited's (BIPPL) Long-Term Issuer Rating to 'IND
BB' from 'IND BB-' The Outlook is Stable.
The instrument-wise rating actions are:
-- INR230 mil. (increased from INR220 mil.) Fund-based limit
Long-term rating upgraded; short-term rating affirmed with
IND BB/Stable/IND A4+ rating; and
-- INR285 mil. Term loan due on August 2026 assigned with IND
BB/Stable rating.
The upgrade reflects the growth in BIPPL's revenue and the
improvement in its credit metrics in FY22.
Key Rating Drivers
BIPPL's revenue increased to INR577.68 million in FY22 (FY21:
INR198.57 million), due to an increase in its income from sales of
yellow soil to INR475.88 million (INR39.825 million), as the
company was able to effectively deploy its recently purchased
vehicles. However, the scale of operations continued to be small.
BIPPL recorded revenue of INR998.9 million in 1HFY23 itself.
Furthermore, as of October 2022, the company had an order book of
INR14,009.524 million, out of which INR3,106.552 million is to be
executed by FYE24, providing strong revenue visibility.
Consequently, Ind-Ra expects the revenue to grow steadily in the
short term.
BIPPL's credit metrics remained modest but improved in FY22 due to
an increase in the absolute EBITDA to INR116.55 million (FY21:
INR45.59 million). The interest coverage (operating EBITDA/gross
interest expenses) was 2.77x in FY22 (FY21: 1.97x) and the net
leverage (total adjusted net debt/operating EBITDAR) was 3.54x
(6.51x). In FY23, despite an increase in the absolute EBITDA,
Ind-Ra expects BIPPL's credit metrics to remain at similar levels
owing to an increase in the debt availed for its planned capex of
INR70 million-100 million to expand its vehicle fleet.
Liquidity Indicator – Stretched: BIPPL's average maximum
utilization of the fund-based limits was 81.41% during the 12
months ended November, 2022. The company's net working capital
cycle remained elongated but it improved to 327 days in FY22 (FY21:
542 days), due to a fall in the receivable days to 192 days (414
days) and a decline in inventory days to 199 days in FY22 (FY21:
219 days). The inventory period improved due to timely completion
of surveys post the pandemic, leading to timely billing of the
works completed. The cash and cash equivalents stood at INR5.24
million at FYE22 (FYE21: INR3.94 million). The cash flow from
operations remained negative but improved to INR74.07 million in
FY22 (FY21: negative INR136.99 million), mainly due to the increase
in the absolute EBITDA. The free cash flow remained negative
INR116.39 million in FY22 (FY21: negative INR176.87 million). BIPPL
has scheduled debt repayments of INR52.71 million in FY23 and
INR79.79 million in FY24. BIPPL does not have any capital market
exposure and relies on banks and financial institutions to raise
funds to meet its funding requirements.
The ratings benefit from the healthy EBITDA margins. BIPPL's EBITDA
margin fell to 20.20% in FY22 (FY21: 22.96%) due to an increase in
fuel prices and transportation costs. The ROCE was 22.1% in FY22
(FY21: 13.1%). Ind-Ra expects the EBITDA margin to remain at
similar levels in the short term, given the nature of the
operations.
The ratings are also supported by the promoters' experience of
nearly two decades in the civil construction industry, which has
led to established relationships with customers and suppliers.
Rating Sensitivities
Negative: A decline in the scale of operations, leading to a
deterioration in the overall credit metrics and the interest
coverage and/or further pressure on the liquidity position, both on
a sustained basis, could lead to a negative rating action.
Positive: A substantial increase in the scale of operations and
successful execution of new mining projects, along with an
improvement in the overall credit metrics, with the interest
coverage remaining above 2.5x, and the liquidity profile, all on a
sustained basis, could lead to a positive rating action.
Company Profile
BIPPL was incorporated in 2007 and commenced operations in 2019.
The company is based in Bangalore and is engaged in subcontracting
work of infrastructure for Tata Projects Limited (IND AA/Stable)
and Larsen & Toubro Limited (IND AAA/Stable).
CAROL INFO: Ind-Ra Cuts LT Issuer Rating to BB+, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Carol Info
Services Limited's (CISL) Long-Term Issuer Rating to 'IND BB+' from
'IND BBB-'. The Outlook is Stable.
The instrument-wise rating action is:
-- INR3,193.21 bil. Term loan due on February 2035 downgraded
with IND BB+/Stable rating.
The downgrade reflects the deterioration in the credit profile of
Wockhardt Ltd ('IND BB+'/Stable), which accounts for almost 95% of
the total rental income for CISL.
ANALYTICAL APPROACH: The agency continues to take a consolidated
view of CISL and its wholly owned subsidiary, Banneret Trading Pvt
Ltd, while arriving at the rating, due to the strong strategic
linkages between them. As the subsidiary has been non-operational
since FY13, there is no material difference between the
consolidated and standalone financials.
Key Rating Drivers
Deteriorated Credit Profile of Wockhardt: The downgrade reflects
Wockhardt's continued high consolidated debt levels (including
promoter debt) post the completion of an INR7.5 billion rights
issue during FY22 as EBITDA generation remained weak. Wockhardt
reported a weak financial performance during 1HFY23 which may lead
to a yoy lower consolidated EBITDA in FY23. While the available
cash is sufficient to meet the repayment obligations for 2HFY23,
the company may not be able to generate the operational cash
required for meeting FY24 debt servicing and other obligations,
leading to heightened dependence on refinancing/liquidity events
(asset monetization/capital raise). The consolidated revenue from
operations declined 30% yoy to INR12.0 billion (FY22: INR32.3
billion) and EBITDA fell to INR270 million during 1HFY23 (1HFY22:
INR2.2 billion; FY22: INR2.9 billion), due to the decline reported
in the India and UK businesses.
Strong Linkages with Wockhardt: Wockhardt is a group company of
CISL, with the former contributing almost 95% to the latter's total
rental income. Wockhardt has leased Wockhardt Towers in Mumbai,
which being its headquarters is strategically important and thus
ensures tenant stickiness. It has also leased some of CISL's
properties in Aurangabad. Besides, the directors of CISL are former
employees of Wockhardt. Thus, the change in the credit profile of
the key tenant has affected the credit profile of CISL.
Modest Credit Metrics: On a consolidated basis, the gross interest
coverage (EBITDA/gross interest expenses) slightly increased to
2.32x in FY22 (FY21: 2.30x) and the net leverage (adjusted net
debt/EBITDA) increased to 4.53x (3.91x), due to the company
availing a lease rent discounting loan of INR740 million in FY22
that was ultimately utilized to meet the working capital
requirements of Wockhardt. On a consolidated basis, the company had
a debt of INR4,114.84 million as of March 31, 2022 (FY21:
INR3,486.71 million), which majorly comprised a lease rent
discounting loan of INR3,965.87 million (INR3,350.55 million). The
agency expects CISL's consolidated average debt service coverage
ratio to remain 1.4x over from FY23-FY25 (FY22: 1.4x; FY21: 1.3x).
The credit metrics are expected to be modest during the near to
medium term.
Large Investments in Wockhardt Hospitals: CISL, as a long-term
strategic investment in healthcare, invested INR5,590.75 million in
its associate company, Wockhardt Hospitals Limited (WHL), as of
March 2022, through optionally convertible redeemable debentures,
optionally convertible cumulative redeemable preference shares and
equity. The debt instruments will be due for redemption/conversion
post-December 2024 while the coupon has also been deferred/
accumulated. The management does not expect any returns to accrue
from WHL in the medium term, due to its weak financial structure.
Any further investments in WHL or deterioration in its credit
profile will be a key rating monitorable.
Liquidity Indicator - Stretched: The rating factors in the presence
of a debt service reserve account equivalent to two months of
repayment obligations in the form of fixed deposits worth INR90.39
million and additional fixed deposits of INR19.9 million as of
March 2022. Also, the company had a cash balance of INR121.66
million at FYE22 (FYE21: INR40.10 million). The rent collected is
being deposited in an escrow bank account and the surplus cash will
be available to the company only after it meeting its debt service
obligations. The equated monthly instalment for the loans is
INR46.87 million. CISL has total repayment obligations of INR147.07
million for FY23 and INR164.81 million for FY24. Furthermore, CISL
does not have any capital market exposure and relies on a single
bank/financial institution to meet its funding requirements.
Rating Sensitivities
Positive: A significant improvement in the credit profile of
Wockhardt or improvement in the consolidated net leverage below
3.5x will be positive for the ratings.
Negative: Any significant deterioration in the credit profile of
Wockhardt or any further increase in the consolidated debt level
will be negative for the ratings.
Company Profile
CISL, a subsidiary of Khorakiwala Holdings and Investments Private
Limited, is primarily engaged in the business of leasing out
immoveable property in Mumbai and Aurangabad.
CGR COLLATERAL: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of CGR
Collateral Management Limited (CCML) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 29,
2021, placed the rating(s) of CCML under the 'issuer
non-cooperating' category as CCML 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. CCML
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).
CGR Collateral Management Limited (CCML) was incorporated by Mr
Aman Deep in December 2012. CCML offers modern, scientific, IT
enabled storage services for all types of agro commodities covering
more than 57 locations spread across 6 states. The company had 175
storage facilities having a capacity of over 2.98 Lakh MT as on
June 30, 2018. CCML also provides commodity assaying services as it
is an NCDEX and NCDEX e Markets Ltd (NeML) appointed Assayer. The
company also provides the advisory and collateral management
services in partnership with the associate banks and Non-Banking
Financial Companies (NBFCs). CCML has tie-up with 8 nationalized
banks for providing collateral management services.
CRYSTAL SEA: Ind-Ra Withdraws 'D' Long Term Issuer Rating
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Crystal Sea
Foods Private Limited's Long-Term Issuer Rating of 'IND D (ISSUER
NOT COOPERATING)' in the non-cooperating category and has
simultaneously withdrawn it.
The instrument-wise rating actions are:
-- INR57.5 mil. Long term loan (Long-term) due on October 2023
maintained in non-cooperating category and withdrawn; and
-- INR250 mil. Fund-based working capital limit (Long-term/Short-
term)' maintained in non-cooperating category and withdrawn.
*Maintained at 'IND D (ISSUER NOT COOPERATING)' before being
withdraw
Key Rating Drivers
The ratings have been maintained in the non-cooperating category
before being withdrawn because the issuer did not participate in
the rating exercise, despite repeated requests by the agency, and
has not provided information about full-year financial performance
for FY22, sanctioned bank facilities and utilization, 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.
Company Profile
Incorporated in June 2013, Crystal Sea Foods operates a shrimp
processing unit at Chirala (Andhra Pradesh). The company has an
installed processing capacity of 10,500 metric ton and cold storage
capacity of 2,100 metric ton.
DHABALESWAR TRADERS: CARE Keeps B- Debt Rating in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Dhabaleswar
Traders (DT) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 30,
2021, placed the rating(s) of DT under the 'issuer non-cooperating'
category as DT 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. DT continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
October 16, 2022, October 26, 2022, November 5, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Dhabaleswar Traders was established as a partnership firm in the
year 2005 by Mr. Ch. Nageswar Patra, Mr. Nandulal Patra, Mrs. Ch.
Rasmita Patra, Mrs. Bandita Patra, Mr. Madhaba Patra of Berhampur,
Odissa. Since its inception, the firm has been engaged in trading
of agricultural products mainly pulses. The firm procures its
traded goods from across India and sells happens mainly in the
state of Odisha.
DREAM WEAVER: CARE Assigns B+ Rating to INR1cr LT Loan
------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Dream
Weaver Private Limited (DWPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 1.00 CARE B+; Stable Assigned
Short Term Bank
Facilities 9.00 CARE A4 Reaffirmed
Detailed rationale and key rating drivers
The ratings assigned to the Bank Facilities of DWPL continues to be
constrained by small scale of operations, weak financial
performance in FY22 (refers to the period April 1 to March 31) and
8MFY23, moderate capital structure, elongated working capital
cycle, susceptibility of profitability margin to raw material price
fluctuation, foreign exchange fluctuation risk, intensely
competitive nature of industry along with high geographic and
customer concentration risk. However, the ratings derive comfort
from the experienced promoters and stable demand outlook for the
products manufactured.
Rating sensitivities
Positive factors – Factors that could lead to positive rating
action/upgrade:
* Increase in scale of operation (turnover above INR25.00 crore)
with sustained profitability
* Improvement in capital structure (overall gearing ratio below
1.00x) and its reduced reliance on external borrowing for funding
its working capital requirement on a sustained basis.
Negative factors – Factors that could lead to negative rating
action/downgrade:
* Stretched liquidity position
* Decline in scale of operation with TOI less than INR5 crore
Detailed description of the key rating drivers
Key Rating Weaknesses
* Small scale of operations: The company has achieved total
operating income of INR10.85 crore in FY22 (Audited). The scale of
operations of the company continues to remain small. The tangible
net worth of the company stood at INR3.41 crore and the total
capital employed of the company was also low at INR16.17 crore as
on March 31, 2022 (Audited). The small scale restricts the
financial flexibility of the company at a time of stress.
* Moderate capital structure: The capital structure of the company
remained moderate marked by overall gearing ratio of 3.49x as on
March 31, 2022 (Audited) as against 3.21x as on March 31, 2021. The
PBILDT Interest coverage ratio stood at 1.45x in FY22 (Audited)
vis-à-vis 1.52x in FY21. The Total Outside Liabilities (TOL)/
Tangible Net Worth (TNW) stood at 4.60x as on March 31, 2022 as
against 3.90x as on March 31, 2021.
* Elongated working capital cycle: The working capital cycle is
elongated at 394 days in FY22 (560 days in FY21) on account of
elongated inventory period and receivables days primarily due to
lower sales. The average collection days stood at 148 days in FY22
(202 days in FY21) while the average inventory days stood at 308
days in FY22 (417 days in FY21). However, the average creditors
period stood around 62 days in FY22 (58 days in FY21).
* Margins vulnerable to raw material price fluctuation and foreign
exchange fluctuation risk: The raw material, primarily
semi-finished leather is sourced indigenously. The domestic leather
prices are dependent on the availability of leather in the domestic
market and are subject to significant volatility. However, as the
export realization are not linked to the domestic leather prices,
the margins are susceptible to adverse price movements in the
export and domestic markets. Also, as the DWPL derives about 100%
of the revenues from the export market, it remains exposed to the
fluctuations in the foreign currency rates.
* Intensely competitive nature of industry along with high
geographic and customer concentration risk: The company, being a
small sized exporter, has limited bargaining power with its export
customers and faces stiff competition from China and other leather
exporting countries like Bangladesh, Vietnam and Italy. Hence, the
players in the industry do not have pricing power and are exposed
to competition induced pressures on profitability. This apart, the
company primarily exports its products to European countries like
Italy, Spain, UK etc. and top three customers accounted around 40%
of total sales during FY22, which resulted in geographical and
customer concentration risk.
Key Rating Strengths
* Experienced Promoters: DWPL is currently managed by Mr. Rakesh
Kumar Choubey, Director, along with other director, Mr. Shahaan
Siddiqui and a team of experienced personnel. The directors are
having about a decade of experience in similar line of business.
This apart, the company is in operation from the year 2012, thus
enjoying a satisfactory track record of operation.
* Weak financial performance in FY22 and 8MFY23: The company
generated total operating income of INR10.85 crore during FY22
(Audited) as against INR7.36 crore in FY21. The PBILDT margin stood
at 10.66% while the PAT margin stood at 2.74% during FY22
(Audited). However, the company is expecting better demand in FY23
and has already achieved a turnover of INR8.60 crore in 8MFY23 with
a PAT of INR0.34 crore.
* Stable demand outlook for the products manufactured: The company
manufactures and exports small leather goods like wallets, belts,
purses, key rings etc along with ladies bag, handbags, laptop bags,
brief cases, etc, which has adequate demand in domestic and foreign
markets with the increase in population and change in lifestyle.
Liquidity: Stretched
In FY22, the company has generated gross cash accruals of INR0.39
crore. The average utilization levels of the working capital limits
were almost fully utilized for the last twelve months ended
November 30, 2022. The company has taken covid loan of INR0.60
crore during FY22 and has also taken fresh Term Loan of INR1.85
crore for construction of factory at Calcutta Leather Complex,
Bantala, Kolkata.
Incorporated in 2006, DWPL is engaged in the manufacturing and
export of leather and leather products. The company deals in small
leather goods like wallets, belts, purses, key rings etc along with
ladies bag, handbags, laptop bags, brief cases, etc. The company
does contract manufacturing for brands like Samsonite, Pepe Jeans,
etc which eventually sells the product under their brand name. The
company has manufacturing facility in Kolkata with an installed
capacity of 3,50,000 pcs per month. The company fully exports its
products to the European countries like Italy, Spain, UK etc
through Air (80%) and Sea (20%). The day-to-day affairs of the
company are looked after by Mr. Rakesh Kumar Choubey, Director,
along with the other director and a team of experienced personnel.
DTC SECURITIES: Ind-Ra Withdraws BB Long Term Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn DTC Securities
Limited's (DTC) Long-Term Issuer Rating of 'IND BB (ISSUER NOT
COOPERATING)'.
Key Rating Drivers
Ind-Ra has withdrawn the issuer rating of DTC following the
withdrawal of the provisional instrument ratings on July 9, 2021.
Company Profile
DTC was incorporated in 1995 by DTC Group. Dinesh Jalan, Satya
Narayan Jalan, and Poonam Jalan are the directors of the company.
The company has its registered office in Kolkata.
DYNAMIC ENGINEERS: CARE Lowers Rating on INR10cr LT Loan to B
-------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Dynamic Engineers (DE), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B+; Stable
Short Term Bank 7.00 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 December 27,
2021, placed the rating(s) of DE under the 'issuer non-cooperating'
category as DE 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. DE continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
November 12, 2022, November 22, 2022, December 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 DE have been revised
on account of non-availability of requisite information.
Kota-based (Rajasthan) DE was formed as a partnership concern in
1990. It is engaged in the business of fabrication for Railways
with major focus on fabrication of steel structures, glued joints
and supply of Steel Bridges, Girders and track fittings with
approval of Ministry of Railway (RDSO). Further, the promoters has
also incorporated DEIPL in 2007 which is engaged in the field of
civil works for Railways like Railway Track, Bridges, Limited
Height Subway, Railway Over Bridges etc.
ESSPAL INTERNATIONAL: Ind-Ra Keeps BB+ Rating in NonCooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Esspal
International Private Limited's Long-Term Issuer Rating in the
non-cooperating category and has simultaneously withdrawn it.
The instrument-wise rating actions are:
-- INR160 mil. Term loan* due on January 31, 2027 maintained in
non-cooperating category and withdrawn;
-- INR400 mil. Fund-based working capital limits^ maintained in
non-cooperating category and withdrawn; and
-- INR20 mil. Non-fund-based limits# maintained in non-
cooperating category and withdrawn.
*Maintained at 'IND BB+ (ISSUER NOT COOPERATING)' before being
withdrawn
#Maintained at 'IND A4+ (ISSUER NOT COOPERATING)' before being
withdrawn
^Maintained at 'IND BB+ (ISSUER NOT COOPERATING)'/'IND A4+ (ISSUER
NOT COOPERATING)' before being withdrawn
Key Rating Drivers
The ratings have been maintained in the non-cooperating category
before being withdrawn because the issuer did not participate in
the rating exercise, despite requests by the agency and has not
provided information pertaining to full-year financial performance
for FY22 and FY21, sanctioned bank facilities and utilization,
business plan and projections for the next three years, information
on corporate governance, and management certificate.
Ind-Ra is no longer required to maintain the ratings, as the agency
has received no-objection certificates from the lenders. This is
consistent with the Securities and Exchange Board of India's
circular dated March 31, 2017 for credit rating agencies.
Company Profile
Incorporated in March 2009, Esspal International manufactures and
trades grey fabrics. The company, promoted by Manish Lath and
Rashmi Lath, has a facility in Bhilwara, Rajasthan, with 340
weaving machines.
GLOWMORE FINANCE: Ind-Ra Assigns 'B+' Bank Loan Rating
------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated Glowmore Finance Pvt
Ltd.'s (Glowmore) bank loans as follows:
-- INR150 mil. Bank loans assigned with IND B+/Stable rating.
The rating reflects Glowmore's limited size and scale of operations
with geographic concentration, limited vintage in operations, and
modest profitability. However, the rating is supported by strong
sponsor support from its promoters in the form of equity capital
and unsecured loans for its current scale of operations.
Key Rating Drivers
The rating reflects Glowmore's limited size and scale of operations
as indicated by its outstanding micro loan assets under management
(AUM) of INR71.3 million at 1HFYE23 (FYE22: INR66 million, FYE21:
INR58 million). Also, the company's entire portfolio is originated
from two districts of Odisha, exposing it to geographical
concentration risk. The entity plans to expand in the adjoining
districts over the near-to-medium term.
Although the company has reported nil gross non-performing assets
(GNPA) in 1HFY23, the rating is constrained by Glowmore's weak
borrower profile, given unsecured lending to the marginal
vulnerable segment. Ind-Ra believes amid the microfinance
institutions (MFIs) being subject to systemic and idiosyncratic
risks typical of serving the needs of a socio-politically and
economically vulnerable segment, the company's ability to on-board
borrowers with a good credit history, recruit and retain employees,
and improve its geographical diversity while maintaining prudent
lending policies would be key for achieving stable growth.
However, the rating is supported by strong support from the
promoters in the form of equity infusion and unsecured loans since
inception. 1n 1HFY23, Glowmore's equity was INR52.4 million with a
low leverage (debt/equity) of 0.5x (FY22: 0.7x) and a comfortable
total capital adequacy ratio of 71% (78%). The company was also
able to raise funds from a public sector bank in FY22 (backed by
fixed deposit) and has started business correspondence book in
FY23. However, the company's ability to manage its leverage with
the increase in its scale of operations, as well as incremental
funding support from the lenders are key rating monitorable.
The rating is further supported by Glowmore's adequate liquidity
position. At 1HFYE23, the company had about INR5.2 million of free
cash and bank balance, which was sufficient to meet its scheduled
obligations of INR3.4 million till December 2022. The company has a
policy of maintaining INR30 million-35 million of cash on balance
sheet as liquidity at any point of time. Glowmore does not have any
unutilized committed bank lines. The company primarily meets its
operating expenses and other obligations through collections
(September 2022: INR12 million, August 2022: INR11.5 million, July
2022: INR9.7 million). Ind-Ra opines maintaining collection
efficiency while ensuring regular flow of funds to sustain
operations and meet its internal growth projection will be critical
for the company.
The rating further draws strength from Ind-Ra's stable outlook on
MFIs. Ind-Ra revised its outlook on the microfinance sector to
Neutral for FY23 from Negative. The agency has also revised the
rating Outlook on small-mid non-bank microfinance institutions
(NBFC-MFIs; including those with over 50% of AUM in microfinance)
to Stable for FY23 from Negative, while maintaining large NBFC-MFIs
(group-owned entities or AUM > INR50 billion) on a Stable rating
Outlook. Ind-Ra opines that the COVID-19 impact on credit costs has
been largely absorbed and there is a likelihood of normalized
growth for MFIs. Collections, especially on post-COVID-19
disbursements, have recovered and refinance has become relatively
easy. Moreover, there are increased viability expectations for
small-mid NBFC-MFIs asset the implementation of new regulations, as
entities can implement risk-based pricing of loans. Ind-Ra opines
this could improve pre-provision operating profit margins and
provide higher tolerance to withstand credit costs. Ind-Ra also
expects that non-profit form of microfinance entities would
continue to face challenges from lenders from incremental borrowing
point of view.
Rating Sensitivities
Positive: The rating could be upgraded if the company is able to
significantly expand and diversify its franchise, scale-up
operations while maintaining adequate short-term liquidity, capital
buffers and leverage on a sustained basis, along with maintaining
the asset quality.
Negative: A significant deterioration in the asset quality and
profitability metrics, leading to capital impairment, leverage
exceeding 4.0x on a sustained basis, and inability to maintain
adequate liquidity would lead to a negative rating action.
Company Profile
Glowmore is an NBFC with its registered and corporate office in
Ganjam, Odisha. The company promotes financial inclusion by
extending products and services in the micro-credit space. It
primarily offers collateral free loans to rural women through the
joint liability group model. GFPL has a network of 12 branches
across two districts of Odisha as of September 2022.
GOEL TRADERS: CARE Lowers Rating on INR2cr LT Loan to B-
--------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Goel Traders (GT), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 2.00 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 9.00 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 30,
2021, placed the rating(s) of GT under the 'issuer non-cooperating'
category as GT 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. GT continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
October 16, 2022, October 26, 2022, November 5, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of GT have been revised
on account of non-availability of requisite information.
Goel Traders (GT) was initially established as a sole
proprietorship firm by Mr. Sunil Goel in 1995. The firm was
reconstituted as a partnership firm from April 2017 onwards with
Mr. Sunil Goel and Mr. Dayananda Goel as its partners with its
office located at Durg, Chhattisgarh. Since its inception, the
entity has been engaged in civil construction business in the
segment like buildings. Further, the entity is also classified as
class 'I' contractor in civil (B&R) under the department of PWD
Government of Chhattisgarh. Class 'I' contractor can bid for all
types and higher value of contracts of Public Works Department
(PWD) in Chhattisgarh. The entity is also engaged in contractor
business with Chhattisgarh Police Housing Corporation Limited,
Government of Chhattisgarh and Chhattisgarh Housing Board (CHB),
Bhilai Municipal Corporation, Raipur Municipal Corporation Raipur
(Chattisgarh). Both the partners (Mr. Dayanada Goel and Mr. Sunil
Goel) have more than a decade of experience in civil construction
industry. Both of them look after the day to day operations of the
entity along with other technical and nontechnical professionals
who are having long experience in this industry.
GOLDSTAR POLYMERS: CARE Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Goldstar
Polymers Limited (GPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ 7.00 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
Short Term Bank 0.25 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 GPL under the 'issuer
non-cooperating' category as GPL 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. GPL
continues to be non-cooperative 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).
Established in 1990 as a proprietorship concern by Mr. Prem Prakash
Saraogi, Goldstar Containers (GC) was later converted into a public
limited company as Goldstar Polymers Limited (GPL) in 2006. The
company is engaged in manufacturing of plastic drums which find
application in carriage of various materials across different
industries viz. oil & petroleum, lubricants, inks, chemicals, etc.
The manufacturing facility of the company is located in Daman.
GREENTECH MEGA: CARE Lowers Rating on INR24.05cr LT Loan to D
-------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Greentech Mega Food Park Limited (GMFPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 24.05 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE BB-; Stable
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated December 7,
2021, placed the rating(s) of GMFPL under the 'issuer
non-cooperating' category as GMFPL 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. GMFPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated October 23, 2022, November 02,
2022, November 12, 2022, January 5, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The rating assigned to the bank facilities of GMFPL have been
revised on account of delays in debt servicing recognized from
Annual report of FY22 available from registrar of the companies.
Jaipur-based Greentech Mega Food Park Ltd (GMFPL) was incorporated
in 2012 as a private limited company by CG Foods India Pvt. Ltd.
(CGFPL), ARG Developers Pvt. Ltd., Genus Power Infrastructures Ltd,
Kamtech Associates Pvt. Ltd., Mr Surja Ram Meel, Mr Suresh Agarwal
and Mr Sunil Bansal with CGFPL being the lead promoter.
Subsequently, constitution of the company was changed from private
limited to public limited (closely held) in October, 2016. Further
in FY17, Neccon Power & Infra Ltd. bought 10% stake in the
company. The company is operating Mega Food Park at Roopangarh,
Distt. Ajmer with total developed area of 3.45 LSM. The company is
leasing out industrial plots to the participant for 99 years.
Further, it will also receive monthly rental from leasing out core
and non-core infrastructure like warehouses, SDF sheds, cold
storages, Individual Quick Freezer (IQF), power, Effluent treatment
plant (ETP), Sewage Treatment Plant (STP) etc.
GUPTA FOODS: CARE Keeps C Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Gupta Foods
(GF) continues to remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.50 CARE C; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated December 16,
2021, placed the rating(s) of GF under the 'issuer non-cooperating'
category as GF 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. GF continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
November 1, 2022, November 11, 2022, November 21, 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).
Gupta Foods (GF) is a Punjab based, partnership firm established in
2008 by Mr. Naveen Gupta, Mr. Avinash Gupta, Mrs. Anita Gupta and
Mrs. Shruti Gupta sharing profit and loss in equal proportion. The
company is engaged in processing of paddy at its manufacturing
facility located in Tarn Taran, Punjab.
GVG KRAFT: Ind-Ra Moves BB+ Issuer Rating to Non-Cooperating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated GVG Kraft Private
Limited's (GKPL) Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
continue to appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR9 mil. Term loan due on June 2024 migrated to non-
cooperating category with IND BB+ (ISSUER NOT COOPERATING)
rating; and
-- INR60 mil. Fund-based working capital limit migrated to non-
cooperating category with IND BB+ (ISSUER NOT
COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
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 in 2015, GKPL manufactures packing kraft with a total
capacity of 1,800 tons per month. The packing kraft can be used to
manufacture kraft boxes, paper bags and thick bags. Historically,
the company has been utilizing around 75% of its total capacity.
The company, which has its registered office in Udumalpet, has a
manufacturing unit near Udumalpet.
ICA EDUSKILLS: CARE Reaffirms B+ Rating on INR13.25cr LT Loan
-------------------------------------------------------------
CARE Ratings has reaffirmed ratings on certain bank facilities of
ICA Eduskills Pvt. Ltd. (ICA), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 13.25 CARE B+; Stable Reaffirmed
Short Term Bank
Facilities 21.50 CARE A4 Reaffirmed
Detailed rationale and key rating drivers
The ratings assigned to the bank facilities of ICA is revised on
account of substantial deterioration in the financial performance
of the company in FY22 (refers to the period from April 1 to March
31). The revision also takes into account delay in servicing of
interest on advances from National Skill Development Corporation
(NSDC; not rated by CARE). The ratings are further constrained by
its small scale of operation, continued low enrolments cycle and
working capital intensive nature of the operation due to high
collection period. The ratings, however, derive strength from the
long operational track record of ICA with established brand name,
diversity in nature of courses offered, government backed
programmes and satisfactory placement track record.
Rating sensitivities
Positive factors – Factors that could lead to positive rating
action/upgrade:
* Increase in scale of operation (turnover beyond INR160 crore)
with significant improvement in its operating margin on a sustained
basis.
* Improvement in operating cycle below 90 days with reduced
reliance on external borrowing for funding its working capital
requirement on a sustained basis.
Negative factors – Factors that could lead to negative rating
action/downgrade:
* Sizable decline in scale of operation (turnover below INR50
crore) with further deterioration in operating margin from
current level on a sustained basis.
* Deterioration in operating cycle beyond 200 days and increased
reliance on external borrowing for funding these requirements on a
sustained basis.
Detailed description of the key rating drivers
Key Rating Weaknesses
* Small scale of operations in FY22: The scale of operations of the
company declined significantly as marked by total operating income
of INR82.53 crore (IN74.45 crore in FY21). However, during 8MFY22,
the company has achieved turnover of INR39.50 crore. Furthermore,
the total net worth has also declined to INR41.25 crore as on March
31, 2022 as against INR42.45 crore as on March 31, 2021.
* Continued low enrolments cycle: ICA's business model is such that
approximately 10% of its revenue is generated from fees collected
from coaching at own and franchise centres and remaining 90% of its
revenue is generated form royalty collected from government
education programmes (namely DDU-GKY and PMKK). In FY22, the
enrolments were at par with previous year performance which
declined due to COVID-19 induced nationwide lockdown. Maximum
number of enrolments came from the PMKK (Pradhan Mantri Kaushal
Kendra) programme and going forward, a healthy increase in the
number of enrolments across various programmes can be expected as
the economy has gradually opened up now as a result of various
relaxations in the lockdown.
* Moderate financial performance in FY22: The revenues and
profitability of the company are still substantially below
pre-covid levels. Thus, ICA achieved PBILDT of only INR9.66 crore
in FY22 (INR-0.44 crore in FY21). The company incurred net loss of
INR1.66 crore in FY22 as against PAT of INR-11.74 crore in FY21 &
INR4.67 crore in FY20. The company generated cash of INR4.37 crore
in FY22. This apart, the company has taken fee based advanced from
NSDC, on repayment of principal of which it has got moratorium.
* Working capital intensive nature of operation due to high
collection period: In respect of courses offered to students who
are sponsored under various schemes of government, receipt of money
(reimbursements from government) in a timely manner is crucial due
to procedural aspects involved. Around 85% of the total revenue of
the company is achieved in FY22 from government receipts under
various skill development programmes. A large part of the total
receivables comprises of receivables form the government and
creates cash flow mismatch due to delay in reimbursement of the
said amount. This stretches the operating cycle of the company. The
collection period of ICA is high to the level of 213 days in FY21
which has continued at 205 days in FY22. The debtors balance has
increased from INR35.75 crore as on March 31, 2021 to INR58.22
crore as on March 31, 2022.
Key Rating Strengths
* Long operational track record with experienced promoters and
established brand name: ICA is engaged in providing education
services since 1999 and thus has more than two decades of track
record of operations. Dr. Narendra Kumar Shyamsukha started his
career as a Practicing Chartered Accountant for 10 years in his own
firm. In 1999, Dr. Shyamsukha ventured into the vocational
education industry with a proposition of offering Job Guaranteed
Courses. ICA has been in operation for over two decades under the
leadership of Dr. Shyamsukha. Dr. Shyamsukha has also completed
Doctorate from Mumbai University. Being in the same line of
business since long period, the company has established brand name
in the sector and is deriving benefits out of this.
* Diversity in nature of courses offered with high share of
Government backed programmes: ICA's business model consists of two
programmes- 1. Retail (including coaching at own and franchise
centres) and 2. Government programmes (DDU-GKY, PMKK, NSQF and
Aspire). Under retail, ICA imparts coaching for Basic Accounts,
Taxation (Direct and Indirect- including GST) coupled with three
certifications from SAP, Microsoft and QuickBooks/Tally. ICA's
Flagship course on Accounts & Taxation is CIA and CIA+. ICA also
has a Degree Program with two major courses- BBA-Financial
Services and B.ComBanking & Finance. ICA is a training and coaching
institute and is a part of unorganised sector in education
industry. Hence, it is not bound by regulatory risk in particular.
It is an approved funded training partner of National Skill
Development Corporation (NSDC) and provides training under DDU-GKY
and PMKK programmes. These are government initiatives and are
projected towards skill development of unskilled population of the
country. Hence, these are funded by government.
* Satisfactory placement track record: ICA provides both job
guarantee and non-job guarantee courses. ICA certified students
under Job guarantee courses are entitled for an ATJ card (Any time
Job). Under job guarantee courses, almost 100% of the willing
individuals are placed.
Liquidity: Stretched
Liquidity is characterised by GCA of INR4.37 crore in FY22
vis-à-vis debt repayment obligation of INR1.12 crore in FY23.
Also, there company has operating lease obligations to be paid in
FY23 amounting to INR 7.05 crore. Furthermore, ICA had free cash
and cash equivalents to the tune of INR 10.63 crore. Also, about
55% of total debtors are receivable for over more than 6 months
cycle. Governments contributing to over more than 80% of the TOI
have delayed payments which may exceed to over a period of 1 year
for realisation.
ICA Edu Skills Private Limited (ICA), incorporated in 1999, is
promoted by Kolkata based Mr. Narendra Kumar Shyamsukha. ICA is a
training and coaching institute specializing in training of
job-oriented accounts, finance and taxation. It has equal emphasis
on domain and soft skills training. It is an approved funded
training partner of National Skill Development Corporation (NSDC)
which provides training under DDU and PMKK programmes. It has
National Placement Network with over 30 placement offices and
conducts periodic campus interviews and job fairs. The company
began its operations in Kolkata and it gradually expanded its
operations to rest of India. Currently, ICA has 94 own and
franchisee centres in retail vertical, 50 PMKK centres and 40
DDUGKY centres in skills vertical. ICA has its presence all across
the country in 23 states and over 100 cities. It is an ISO
9001:2015 certified institute. It is also an affiliated training
partner with NSDC.
INDO NABIN: CARE Reaffirms C/A4 Rating on INR5.0cr LT/ST Loan
-------------------------------------------------------------
CARE Ratings has reaffirmed ratings on certain bank facilities of
Indo Nabin Projects Limited (INPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ 5.00 CARE C; Stable/CARE A4
Short Term Reaffirmed
Bank Facilities
Detailed rationale and key rating drivers
The rating assigned to the bank facilities INPL continue to be
constrained by reduction in scale of operations in FY22 (refers to
the period April 1 to March 31) with net loss incurred by the
company, elongation of average collection period albeit reduction
in absolute level, reduction in order book position, weak
debt-protection metrics and exposure to volatility in input
prices.
The ratings also factor in the gradual reduction in debt level by
the company, experience of the promoters in the industry and stable
demand outlook.
Rating sensitivities
Positive factors – Factors that could lead to positive rating
action/upgrade:
* Increase in the scale of operations on a sustained basis with
improvement in PBILDT margins leading to improvement in debt
coverage indicators.
* Successful biding of new orders and timely execution of the order
book.
* Improvement in working capital cycle below 500 days.
* Improvement in liquidity position.
Negative factors – Factors that could lead to negative rating
action/downgrade:
* Inability to improve profitability or realise pending dues
leading to further deterioration in liquidity
Detailed description of the key rating drivers
Key rating Weakness
* Reduction in order book position: The company had low unexecuted
order book of around INR3.35 crore as on September 30, 2022. INPL
was not able to secure any major order in FY22 and in current year
due to absence of BG limits. Further, the working capital
facilities of the company have been reduced by the banks which
restrict its scale of operation to some extent. The reduction in
order book was due to conscious decision by management not to bid
for EPC orders (which has resulted in losses in the past).
Currently the management bid only for consultancy projects.
* Continuous deterioration in financial performance in FY22: The
operating income of the company substantially reduced to INR7.00
crore in FY22 (Audited) from INR19.46 crore in FY21 on account of
lower execution of existing orders and absence of fresh orders in
the last three years due to conscious decision by management not to
bid for EPC orders (which has resulted in losses in the past).
Currently the management bids only for consultancy projects. PBILDT
margin of the company also continuously decline, and company
reported operating loss of INR7.08 crore in FY22 as against
operating loss of INR 5.78 crore in FY21 on account of
under-absorption of fixed costs along with cost overrun in raw
material consumption due to theft and pilferage in some of the
projects. In H1FY23, the company reported turnover of INR 4.42
crore with PBT of INR0.05 crore in H1FY23.
* Elongation of average collection period: The operating cycle of
the company remained high at 1334 days in FY22 (Audited) vis a vis
from 638 days in FY21. The average collection period remains high
at 1462 days in FY22 vis-à-vis 669 days in FY21. However, on
absolute level, overall debtors has reduced to INR24.04 crore as on
March 31, 2022 and further to INR15.63 crore as on November 30,
2022, from INR32.82 crore as on March 31, 2021. The Company paid
off its GECL loan as well as working capital limits with IDBI Bank
through recovery of debtors). The company received No Dues
Certificate from IDBI Bank dated June 16, 2022. The average days of
inventory reduced to 9 days in FY22 (68 days in FY21) realization
of existing inventory.
* Volatility in input prices: Raw material cost incurred by the
company accounted for about 55% of total cost of sales in FY22
(Audited). The major components of raw material consumed by INPL
include steel, aluminium, copper, etc. which are subject to price
fluctuations. However, INPL incorporates price adjustment/
escalation clause as per IEEMA in all of its contracts which hedges
it from adverse variances in cost to a certain extent. Weak
debt-protection metrics: The overall gearing however, increased to
6.56x as on March 31, 2022 from to 2.96x as on March 31, 2021 due
to reduction in net worth on account of loss incurred. Total
debt/GCA remained weak on account of cash loss in FY22.
Key rating Strength
Experienced promoters: INPL, incorporated on 1978, was promoted by
Mr. Amalendu Sen (an electrical engineer from IIT Kharagpur),
having around five decades of experience in the field of electrical
turnkey project execution and Mr. R. Chandramouli. All directors of
INPL are professionally qualified and involved in the field of
execution of electrical installation for more than three decades.
Going forward, the company will only bid for consultancy projects.
* Gradual reduction in debt level: The overall debt level reduced
to INR31.51 crore as on March 31, 2022 (including unsecured loan of
INR 21.21 crore) from INR33.62 crore (including unsecured loan of
INR23.36 crore) as on March 31, 2021. INPL has reduced debt during
FY22 through collections received from long pending debtors.
* Clientele being government and large corporate entities: INPL's
clientele base [MSPDCL, JBVNL, PWD (Govt. of West Bengal), WBSEDCL,
etc] majorly comprises of government entities. Hence default risk
for payment is low. INPL got good number of repeat orders from its
existing clients in the past indicating the capability of the
company to execute the projects satisfactorily. Though the order
book has been substantially reduced in FY21 and FY22. The reduction
in order book was due to conscious decision by management not to
bid for EPC orders (which has resulted in losses in the past).
Currently the management bid only for consultancy projects.
* Stable demand outlook: In Union Budget 2022-23: The government
has given a massive push to the infrastructure sector by allocating
INR10 lakh crore (US$130.57 billion) to enhance the infrastructure
sector. The government allocated INR134,015 crore (US$17.24
billion) to National Highways Authority of India (NHAI). The
government announced an outlay of INR60,000 crore (US$ 7.72
billion) for the Ministry of Road Transport and Highways. The
government announced INR 76,549 crore (US$ 9.85 billion) to the
Ministry of Housing and Urban Affairs.
Liquidity: Poor
The liquidity of the company is poor which is reflected in cash
losses incurred and high utilization of working capital limits. The
average month-end utilization of non-fund-based limits remained
high at above 95% through the past 12 months ended November 2022.
Average utilization of fund-based limits is 64% in last 12 months
ended November 2022. In FY23, realization from debtors and
unsecured loan from promoter are expected to support liquidity.
Company closed working capital bank facilities with IDBI Bank.
Company received No Dues Certificate from IDBI Bank dated June 16,
2022. Company's receivable was recovered from the government
authorities, through which they have repaid the outstanding amount
to the Bank. Also, company has reduced its sanctioned BG limits in
Bank of Baroda from INR7.00 crore to INR 4.00 crore on April,
2022.
Indo Nabin Projects Ltd. (INPL), which was originally promoted by
Mr. Amalendu Sen & Mr. R. Chandramouli, is a construction company
engaged in providing engineering & construction services (which
includes design & engineering, supply of materials, erection &
maintenance, and commissioning of sub-stations (33/11KV)) for
electrification projects primarily under Deen Dayal Upadhyaya Gram
Jyoti Yojana (DDUGJY) scheme of the Government of India. The
company specializes in execution of electrical construction
contracts on turnkey basis and has executed several contracts
involving ETC (Erection, Testing and Commissioning) of sub-stations
and operation & maintenance projects.
JOONTOLLEE TEA: Ind-Ra Assigns 'B+' Long Term Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Joonktollee Tea &
Industries Limited (JTIL) a Long-Term Issuer Rating of 'IND B+'.
The Outlook is Stable.
The instrument-wise rating actions are:
-- INR500 mil. Proposed non-convertible debentures (NCDs) coupon
rate 9% due on 10 years* assigned with IND B+/Stable rating;
and
-- INR250 mil. Preference shares coupon rate 6% due on 20 years*
assigned with IND B+/Stable rating.
* From date of allotment and subject to early repayment by the
company
ANALYTICAL APPROACH: Ind-Ra has taken a consolidated view of JTIL
and its subsidiaries - Keshava Plantations Pvt Ltd (100% stake),
Pranav Infradev Company Pvt. Ltd. (100% stake) and The Cochin
Malabar Estates & Industries Ltd. (a wholly-owned subsidiary of
Pranav Infradev Company), together referred to as the group
hereafter, while assigning the ratings. This is on account of the
strong operational and strategic linkages among them. All entities
operate in a similar line of business and have a common
management.
Key Rating Drivers
The ratings reflect the group's medium scale of operations. On a
consolidated basis, the revenue grew to INR1,124 million in FY22
(FY21: INR1,068 million) due to an increase in sales realization of
tea, coffee and rubber. During 1HFY23, the group achieved revenue
of INR396 million. On a standalone basis, JTIL reported revenue of
INR340 million in 1HFY23 (FY22: INR1,120 million, FY21: INR970
million). Ind-Ra expects the revenue to improve in the long term as
the group is planning to introduce Orthodox tea in its North Indian
estates.
The ratings also factor in the group's modest EBITDA margin.
Despite the revenue growth, the group's EBITDA margin contracted to
1.31% in FY22 (FY21: 4.42%) due to an increase in overall cost.
The return on capital employed was negative 3% in FY22 (FY21:
negative 1%). Ind-Ra expects the EBITDA margin to improve in the
medium term with the introduction of high-margin Orthodox tea. On
a standalone basis, JTIL's EBITDA margin was modest at 1.1% in
FY22 (FY21: 2.0%) with a return on capital employed of negative 3%
(negative 2%).
The ratings also reflect the group's modest credit metrics as
indicated by the interest coverage (operating EBITDA/gross interest
expenses) of 0.15x in FY22 (FY21: 0.49x) and the net financial
leverage (total adjusted net debt/operating EBITDAR) of 46.37x
(19.94x). The deterioration in the credit metrics was attributed to
the decline in EBITDA margin. Ind-Ra expects the group's credit
metrics to remain modest in FY23, despite a likely improvement in
the EBITDA margin. On a standalone basis, the credit metrics were
modest with the interest coverage of 0.13x in FY22 (FY21: 0.22x)
and net financial leverage of 51.0x (43.0x).
Liquidity Indicator - Poor: The company's average utilization of
the fund-based limits was 88% during the 12 months ended November
2022. The cash flow from operations turned positive to INR15
million in FY22 (FY21: negative INR117 million) owing to the
increase in overall sales. Consequently, the free cash flow
improved, although remained negative at INR55.20 million in FY22
(FY21: negative INR178 million) on the back of lower inflows. The
net working capital cycle remains modest, despite reducing to 226
days in FY22 (FY21: 427 days) because of a reduction in the
inventory holding period to 234 days (440 days). The group's
working capital cycle was 233 days in FY22 (FY21: 496 days).
The company has scheduled repayments of INR36.5 million, INR26.5
million and INR18.6 million in FY23, FY24 and FY25, respectively.
Furthermore, the company will be raising funds through preference
share allotment of INR250 million by end-January 2023 and the
proposed NCD issuance in two tranches of INR250 million, each, as
and when required, which would further provide cushion to the
liquidity.
The ratings are further constrained by agro-climatic risks as tea
and coffee production is dependent on climatic conditions.
Additionally, the inherent cyclicality of the fixed-cost intensive
tea industry, leads to variability in profitability and cash flows
of bulk tea blenders.
However, the ratings are supported by the promoters' more than two
decades of experience in the tea and coffee business as well as
timely funding support from the promoters.
Rating Sensitivities
Positive: An improvement in the group's scale of operations,
leading to an overall improvement in the credit metrics and
liquidity, all on a sustained basis, will be positive for the
ratings,
Negative: Deterioration in the group's scale of operations or any
decline in the liquidity or the interest coverage will be negative
for the ratings.
Company Profile
JTIL operates five tea estates, one coffee estate and one rubber
estate located in Northern and Southern Part of India. The
company's registered office is located in Kolkata, West Bengal.
JTIL is managed and promoted by the Bangur group.
KANAK DEKA: Ind-Ra Withdraws B+ Long Term Issuer Rating
-------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Kanak Deka's (KD)
Long-Term Issuer Rating of 'IND B+ (ISSUER NOT COOPERATING)'.
Key Rating Drivers
Ind-Ra has withdrawn KD's issuer rating following the withdrawal of
the provisional instrument ratings on July 9, 2021.
Company Profile
KD is engaged in the trading of hardware, and construction and
leasing of properties.
KANNATTU FINGOLD: Ind-Ra Hikes Bank Loan Rating to B+
-----------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Kannattu Fingold
Finance Private Limited's (KFFPL) bank loans to 'IND B+' from 'IND
B'. The Outlook is Stable.
The detailed rating action is:
-- INR100 mil. Bank loans upgraded with IND B+/Stable rating.
The upgrade reflects the scale-up of KFFPL's loan book with a
stable asset quality and improving profitability during
FY21-1HFY23. The rating also factors in the prospects of the
company improving its geographic diversification, as it has taken
steps to reduce its geographical concentration in Kerala.
Key Rating Drivers
Stable Asset Quality: KFFPL had nil non-performing loans
(recognized on 180+ days past due basis) at end-September 2022 and
secured lending towards relatively safe gold financing. It extends
gold loans with a tenor of up to 12 months with a bullet principal
repayment structure, while interest accrues on a monthly basis. The
average loan to value ratio of the overall book was 70% with a
maximum cap of 75% in FY22. The company sends notices to its
customers who are 11 months in overdue and an auction is conducted
at the end of 12th month to recover the dues. KFFPL could witness
an increase in its non-performing assets if the gold prices fall
steeply. The management expects to recover the dues through the
auction route.
Reducing Geographic Concentration with Scale up of Operations: At
end-September 2022, KFFPL had a small branch network of 20 branches
(18 in Kerala and two in Uttar Pradesh) with an AUM of INR287
million in 1HFY23 (FY22: 195 million; FY21: INR105 million; FY20:
INR83 million) and a tangible net worth of INR44.6 million (INR 34
million; INR 25 million; INR23.3 million). The company has reduced
its AUM concentration in the past 15 months, with Kerala
contributing 85% to its AUM in 1HFY23 (FY21: 100%). Moreover, the
management plans to open four new branches in Tamil Nadu (Chennai)
and another two branches in Uttar Pradesh in the next one year,
which are likely to ramp up gradually in terms of AUM, thereby
leading to further geographical diversification. However, the
company's current AUM exposes it to high geographical concentration
risk.
Part of Arun Group, although Low Own Vintage: KFFPL is a part of
Kerala-based Arun Group, which was incorporated in April 1986,
under the leadership of Arun Thomas as the group chairman. The
group houses a nidhi company - Kannattu Finance Nidhi Limited that
offers gold loans through 18 branches. Kannattu Finance Nidhi had
assets under management (AUM) of INR850 million as of September
2022, reaching near peak utilization in terms of AUM per branch.
Furthermore, it is a challenge for nidhi companies to open new
branches, due to the complex processes involved. Nidhi companies
are not permitted by regulation to operate in any other state,
except for Kerala. Hence, KFFPL's promoters acquired a sick company
- Adyar Anandhaa Finance Pvt. Ltd in 2018. Post a complete
management change in August 2020, the company was renamed as KFFPL.
With a business presence for more than three decades in Kerala, the
company's promoters have a strong local understanding of customer
needs. However, KFFPL's AUM is relatively unseasoned and a track
record of its asset quality is yet to be established.
Liquidity indicator - Adequate: KFFPL does not have any committed
bank facilities and any source of liquidity currently. It depends
on timely collections from its customers or refinancing of its NCDs
to meet its funding requirements. The company raised about INR78
million from privately placed NCDs at an average cost of 12.5% in
1HFY23. At end-December 2022, the company had a total cash and bank
balance of INR21.2 million, against its debt repayment obligation
(principal plus interest) of INR6.2 million for January-February
2023. Thus, the company's liquidity is adequate to meet its
obligations for two months, even with nil inflows. That said, in
the absence of committed bank lines, KFFPL will need to depend upon
timely collections/refinancing of its NCDs for incremental
disbursements.
Scale – Critical for Stable Profitability: KFFPL's operating
expenses are on a higher side as it is yet to attain economies of
scale. At end-September 2022, majority the company's operations are
manual and more than 70% (FY21: 90%) of the total collections were
in the form of cash. While its net interest income/average assets
improved to 18.5% in 1HFY23; (FY22: 15.5%; FY21: 13.6%; FY20:
14.9%), the higher operating cost/average assets of 10.8% (12.2%,
11.1%, 10.3%) led to volatile return on assets (3.9%; 2.4%; 1.8%;
3.2%). Therefore, Ind-Ra opines that further scaling up of the
operations remains critical for KFFPL to achieve stability in
profitability in the medium term.
Skewed Funding Profile: KFFPL's leverage (debt to equity) stood at
5.8x in 1HFY23 (FY22: 5.1x; FY21: 3.7x; FY20: 2.9x) with a tier-I
capital adequacy ratio of 14.7% (16.1%; 22.0%; 26.0%) and the total
capital adequacy ratio of 17.5% (20.1%; 25.0%; 34.0%), which is
adequate, given the secured nature of the gold loans. However, the
rating is constrained by the lack of diversification in KFFPL's
funding profile as it did not have access to any bank line at
end-September 2022. At end-September 2022, the company was solely
dependent on privately placed non-convertible debentures (NCDs; 75%
of total funding) and subordinated debt (25%) to fund its loan
book. As per the management, the company could raise INR78 million
in 1HFY23 (FY22: INR113 million; FY21: INR32 million) through the
NCD route, with an average tenor of three years and average cost of
12%. It plans to approach banks to diversify its source of funding,
any development on this front and the cost of funds would be a key
rating monitorable.
Rating Sensitivities
Positive: A significant increase in the AUM while maintaining asset
quality metrics, modest leverage and healthy profitability could
lead to a positive rating action. Geographical diversification of
its gold loan book while maintaining stable asset quality, on a
sustained basis, could also be positive for the ratings.
Negative: A significant dilution in the tangible net worth due to
losses, the Tier-I capital ratio declining below 12% on a sustained
basis in the medium term, a deterioration in the asset quality and
profitability buffers could lead to a negative rating action. Also,
a lack of regulatory compliance or a material fraud could lead to a
negative rating action.
Company Profile
Chennai-headquartered KFFPL is a registered non-banking financial
company. The company's management has an extensive experience in
gold financing and has been in the business since 1986.
KHAMMAM SPICE: Ind-Ra Withdraws BB- Long Term Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Khammam Spice
Specialities' (KSS) Long-Term Issuer Rating of 'IND BB- (ISSUER NOT
COOPERATING)'.
Key Rating Drivers
Ind-Ra has withdrawn KSS's issuer rating, following the withdrawal
of the provisional instrument ratings on July 9, 2021.
Company Profile
Established as a partnership firm in 2011, Telangana-based KSS is
engaged in the trading of chilies in the domestic and overseas
markets.
LAXMI COTSPIN: Ind-Ra Withdraws BB+ Long Term Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Laxmi Cotspin
Limited's (LCL) Long-Term Issuer Rating of 'IND BB+ (ISSUER NOT
COOPERATING)'.
Key Rating Drivers
Ind-Ra has withdrawn the issuer rating of LCL following the
withdrawal of the provisional instrument ratings on July 9, 2021.
Company Profile
LCL is engaged in the business of cotton ginning and spinning, with
an installed capacity of 48 automatic double roll gin machines,
16,800 spindles and 1,200 rotors. The company manufactures 100%
combed cotton wrap and hosiery yarns in counts of 30s-40s.
MAA SHEETLA: CARE Keeps B- Debt Rating in Not Cooperating Category
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Maa Sheetla
Autowheels Private Limited (MSAPL) continues 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 13.85 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 MSAPL under the 'issuer
non-cooperating' category as MSAPL 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. MSAPL 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).
Nainital (Uttarkhand) based Maa Sheetla Autowheels Private Limited
(MSAPL), incorporated in 2010 is promoted by Mr. Yashoda Agarwal
and Mr. Navneet Agarwal. MSAPL is an authorized dealer of
Volkswagen India Private Limited since 2010. It sells passenger
vehicles (Polo, Vento, Jetta, Beetle and Ameo). MSAPL has two
showrooms of which one is located in Haldwani (Nainital) and other
in Moradabad where in it is operating 3S facility 'Sales, spares
and service'. Since January 2015, company is also engaged in
trading of sponge iron. The company procures the traded product
from supplier's located in Chhattisgarh and Raipur and sells the
same in Uttarakhand.
MARKOLINES INFRA: Ind-Ra Moves BB+ Rating to Non-Cooperating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Markolines Infra
Private Limited's Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the surveillance
exercise, despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using the rating. The rating will now
appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the agency's
website.
-- INR50 mil. Fund-based working capital limits migrated to the
non-cooperating category with IND BB+ (ISSUER NOT
COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating;
-- INR25 mil. Non-fund-based working capital limits migrated to
the non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating; and
-- INR25 mil. Proposed non-fund-based working capital limits
migrated to the non-cooperating category with IND A4+ (ISSUER
NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
November 29, 2021. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
Company Profile
Markolines Infra is involved in toll operations (supplying manpower
for tolls), route patrolling and maintenance of roads. It is
promoted by Sanjay Patil, Vijay Oswal and Karan Bora. Its
registered office is located in Navi Mumbai, Maharashtra.
MERRITO POLYMERS: CARE Lowers Rating on INR5cr LT Loan to B-
------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Merrito Polymers (India) Private Limited (MPPL), 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 0.50 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 25,
2021, placed the rating(s) of MPPL under the 'issuer
non-cooperating' category as MPPL 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. MPPL
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 MPIPL have been
revised on account of non-availability of requisite information.
The ratings factored decline in scale of operations, occurring of
net losses during FY21 compare to FY20.
Merrito Polymers (India) Private Limited (MPPL) was incorporated in
the year 2014 as a private limited company and promoted by Mr. Yesu
Das Dovari, Mrs. Jayaprada Dovari, Mr. Dovari Amarnath and Mrs.
Darsi Vanaja. The manufacturing unit of Vinyl Sheeting and
Polyvinyl chloride Flexible Film and Foils is located in Krishna
District, Andhra Pradesh, covering an area of ~3400 square feet.
The company is engaged in manufacturing of Vinyl Sheeting and
Polyvinly Chloride Flexible film and started commercial operation
from September 2017. The company purchases raw material (rigid
film) from Chennai, Andhra Pradesh and Telangana. The company sells
its final products to Maharashtra, Chennai, Telangana, Andhra
Pradesh etc.
MUKTI FIRMS: CARE Keeps B- Debt Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Mukti Firms
Private Limited (MFPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.59 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 25,
2021, placed the rating(s) of MFPL under the 'issuer
non-cooperating' category as MFPL 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. MFPL
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).
Mukti Firms Private Limited. (MFPL), incorporated in the year 2016,
is a Arambagh (West Bengal) based company, promoted by Mr. Mukti
Padho Kundu and Mr. Subrata Kundu. It is engaged in the business of
providing cold storage services to potato growing farmers and
potato traders, having an installed storage capacity of 15,000 MTPA
in Hooghly district of West Bengal. Mr. Mukti Padho Kundu (aged 66
years) having experience of more than three decades looks after
overall management of the company with the support of other
director and a team of experienced professionals who have rich
experience in the same line of business.
NAAGAAMI INFRATECH: Ind-Ra Withdraws 'BB-' Long Term Issuer Rating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Naagaami
Infratech Private Limited's (NIPL) Long-Term Issuer Rating of 'IND
BB- (ISSUER NOT COOPERATING)'.
Key Rating Drivers
Ind-Ra has withdrawn NIPL's issuer rating following the withdrawal
of the provisional instrument ratings on July 9, 2021.
Company Profile
Incorporated in 2016, NIPL is engaged in the construction of roads,
bridges and civil structures. It executes only central and state
government projects in Assam and Nagaland.
NATURAL PRODUCT: Ind-Ra Withdraws BB- Long Term Issuer Rating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Natural Product
Bio Tech Limited's (NPBL) Long-Term Issuer Rating of 'IND
BB-(ISSUER NOT COOPERATING)'.
Key Rating Drivers
Ind-Ra has withdrawn NPBL's issuer rating, following the withdrawal
of the provisional instrument ratings on July 9, 2021.
Company Profile
NPBL is a real estate construction company.
NEOTECH FOUNDRIES: CARE Keeps B- Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Neotech
Foundries Private Limited (NFPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.54 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 21,
2021, placed the rating(s) of NFPL under the 'issuer
non-cooperating' category as NFPL 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. NFPL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated September 6, 2022, September 16, 2022, September
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).
Neotech Foundries Private Limited (NFPL) was incorporated as a
Private Limited Company on October 25, 2011. The company was
setting up an alloy steel and iron casting manufacturing unit at
Bhilai Industrial Estate at Chhattisgarhi with an installed
capacity of 5000 MTPA. The project cost was INR12.00 crore, which
was financed by way of promoter's contribution of INR2.02 crore,
unsecured loan from promoters of INR2.98 crore and term loan from
bank of INR7.00 crore. The project is almost completed and the
entire amount towards the project is expensed in full. Moreover,
the company is expected to start commercial operation from June,
2018. Mr. Soumen Midya (aged 54 years), having more than two
decades of experience in alloy steel and iron casting manufacturing
business along with his father Mr. Gunakar Midya (aged 86 years),
having around three decades of experience in similar line of
business looks after the overall management of the company along
with adequate support from a team of experienced personnel.
NIPKO TRADELINKS: Ind-Ra Withdraws 'BB' Long Term Issuer Rating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Nipko Tradelinks
Pvt. Ltd.'s (NTPL) Long-Term Issuer Rating of 'IND BB (ISSUER NOT
COOPERATING)'.
Key Rating Drivers
Ind-Ra has withdrawn NTPL's issuer rating following the withdrawal
of the provisional instrument ratings on July 9, 2021.
Company Profile
NTPL is engaged in the trading of electrical infrastructure
products such as current transformers, energy meters and customized
enclosures for commercial establishments.
OMKARA BUSINESS: CARE Keeps B- Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Omkara
Business Corporation (OBC) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 23.71 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 October 28,
2021, placed the rating(s) of OBC under the 'issuer
non-cooperating' category as OBC 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. OBC
continues to be noncooperative 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).
Omkara Business Corporation was established on June 29, 2017 as a
partnership firm by Mr. Siddhartha Patil (Managing Partner), Mr.
Deepak (Partner) and Ms. Lakshmi Upana (Partner) having its
registered office at Nagarbhavi, Bangalore. The partners of the
firm have experience of a decade in fabrication industry as they
engaged in similar nature of business earlier. The firm is involved
in manufacturing of Pre- Engineered Building System (PEBS) &
Roofing Sheets. The firm has taken over the existing company
"Kailash Roofing Solutions Pvt Ltd" with the purchase consideration
of INR17.50 crore. The commercial operations of the firm started
from 1st June 2018.
PAWANKUMAR KEDIA: Ind-Ra Withdraws BB Long Term Issuer Rating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Pawankumar Kedia &
Co.'s (PKC) Long-Term Issuer Rating at 'IND BB' and simultaneously
withdrawn it.
The instrument-wise rating action is:
-- INR300 mil. Fund-based working capital limit* Affirmed and
withdrawn.
*Affirmed at 'IND BB/Stable/IND A4+' before being withdrawn.
Ind-Ra is no longer required to maintain the ratings as the agency
has received a no-objection certificate from the lender. This is
consistent with the Securities and Exchange Board of India's
circular dated March 31, 2017 for credit rating agencies.
Key Rating Drivers
The affirmation reflects PKC's medium scale of operations with its
revenue increasing to INR2,193 million (FY21: INR1,118 million),
due to the restoration of normal business operations post-COVID-19
disruptions. The revenue in FY21 declined due to muted sales as the
operations were shut for around six months.
PKC's has modest credit metrics, with its net leverage (total
adjusted net debt/operating EBITDA) increased to 4.89x in FY22
(FY21: 1.19x), due to an increase in its net debt, and the gross
interest coverage (operating EBITDA/gross interest expense)
improving to 2.84x (2.4x), due to decrease in gross interest
expense.
Liquidity Indicator - Stretched: PKC's average maximum utilization
of the fund-based limits was 75.30% during the 12 months ended
November 2022. The cash flow from operations deteriorated to
negative INR189.94 million in FY22 (FY21: INR197.94 million), due
to unfavorable working capital changes. The free cash flow
deteriorated to negative INR190.03 million in FY22 (FY21: INR197.79
million). The firm had a moderate net working capital cycle of 76
days in FY22 (FY21: 70 days). The cash and cash equivalents stood
at INR0.25 million at FYE22 (FYE21: INR0.13 million). Furthermore,
PKC had availed a guaranteed emergency credit line of INR57.3
million in December 2021. However, the firm does not have any
capital market exposure and relies on banks and financial
institutions to meet its funding requirements. The company has debt
repayment obligations of INR6.4 million for FY24.
The rating is, however, supported by PKC's healthy EBITDA margin,
which deteriorated to 3.3% in FY22 (FY21: 6.5%) due to an increase
in cost of goods sold, transportation and selling expenses. The
return on capital employed declined to 20.9% in FY22 (FY21:
23.9%).
The rating is also supported by its promoters nearly three decades
of experience in the textile trading industry, leading to
established relationships with its customers and suppliers.
Company Profile
Established in 2016, PKC is a part of the Kedia group and is
engaged in the trading of cotton yarn. The firm's head office is in
Mumbai. Pawankumar Kedia and Manoj Kumar Kedia are the promoters.
POPULAR GROUP: CARE Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Popular
Group Mangalore (PGM) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 3,
2021, placed the rating(s) of PGM under the 'issuer
non-cooperating' category as PGM 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. PGM
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated September 19, 2022, September 29, 2022, October
9, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Popular Group Mangalore (PGM) was established in the year 2014, as
a partnership firm by Mr. B.A. Mohideen, Mr. Abubakar Siddiq, Mr.
B.M. Ishaq and Mr. Nurul Ameen Damudi. The partners are qualified
graduates and each of the partners has 10-15 years of experience in
various field i.e. Constructions and sanitary ware. The firm is
planning to construct commercial complex for lease rental purpose.
R.S. FOODS: CARE Keeps B- Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of R.S. Foods
(RF) continues to remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.00 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 December 17,
2021, placed the rating(s) of RF under the 'issuer non-cooperating'
category as RF 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. RF continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
November 2, 2022, November 12, 2022, November 22, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
R.S. Foods (RSF) was established in April, 2015 as a proprietorship
firm by Mr. Satish Kumar. The constitution was converted into a
partnership firm in April 2016 and is currently being managed by
Mr. Ram Lal Singla and Mr. Atul Singla as its partners sharing
profit and losses equally. The firm is engaged in processing of
paddy and trading of rice at its manufacturing facility in Karnal,
Haryana.
RADIUS ESTATES: Adani Nears Purchase of Builder at 98% Discount
---------------------------------------------------------------
Bloomberg News reports that Adani Goodhomes Pvt. is a step closer
to acquiring Radius Estates and Developers Pvt. at a 98% discount
to what the bankrupt company's creditors had been seeking,
according to a person with knowledge of the matter.
Bloomberg relates that Adani offered to pay INR319.7 million (US$4
million) to financial creditors, compared with their ask for
INR16.58 billion and INR15.2 million to employees, the person said,
asking not to be identified as the details are private. The
acquirer, part of billionaire Gautam Adani's empire, has also
promised to deliver some 700 luxury apartments worth more than INR8
billion to Radius clients by June 2024.
Adani's bid for Radius was approved by the National Company Law
Tribunal, Radius' former partner DB Realty told the stock exchange
on Jan. 9 without sharing financial details, the report relays.
Bloomberg says the NCLT had last year rejected a petition by some
of Radius' creditors that had alleged impropriety in the bidding
process. The matter is still in court and there's no date for a
final verdict.
The project Adani could acquire with this winning bid is named Ten
BKC, located in Mumbai's new financial district. Bandra Kurla
Complex, or BKC, houses the headquarters of several local and
global banks in the South Asian nation and is close to Dharavi, the
world's largest slum, that Adani has also won the contract to
remodel, the report relates.
Ten BKC is spread across 5 acres and is estimated to earn 25
billion rupees in revenue when complete, the person said.
About Radius Estates
Radius Estates and Developers Private Limited operates as a real
estate company. The Company offers construction of residential,
commercial, and infrastructure projects. Radius Estates and
Developers serves customers in India, Dubai, Singapore, Hong Kong,
and the United States and United Kingdom.
In April 2021, the National Company Law Tribunal (NCLT) agreed to
initiate insolvency and bankruptcy proceedings against Radius
Estates and Developers.
RAJKAMAL PETROL: CARE Assigns B Rating to INR6cr LT Loan
--------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Rajkamal
Petrol & Diesel Service (RP), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 6.00 CARE B; Stable Assigned
Detailed rationale and key rating drivers
The rating assigned to the bank facilities of RP is primarily
constrained by its small scale of operation with low networth base,
low profitability, leveraged capital structure and weak debt
coverage indicator, working capital intensive nature of operation.
Further ratings is further constrained by constitution of entity
being partnership and inherent intense completion. The rating
however derives strength from the long track record of operation
and experienced promoters.
Rating sensitivities
Positive factors – Factors that could lead to positive rating
action/upgrade:
* Increase in scale of operation to INR50 crore on sustained basis
* Improvement in operating margin to 1.50% on sustained basis
Negative factors – Factors that could lead to negative rating
action/downgrade:
* Non-renewal of the contract with Hindustan Petroleum Corporation
Limited
* Deterioration in overall gearing beyond 2.50x on sustained basis
Detailed description of the key rating drivers
Key rating weaknesses
* Small scale of operation with low networth base: RP's scale of
operation has reflected a fluctuating trend in past (FY18-21).
Further the same has stood almost at same level at INR21.15 crore
in FY22(vis-à-vis INR21.98 crore in FY21) owing to decline in
sales. The same was owing to outbreak of Covid-19 which impacted
FY21 sales coupled constructing of highway near the fuel pump which
took around 2 years. Owing to construction work being on, heavy
vehicles were not allowed in the city for around 6 months.
Furthermore, with the highway being constructed the traffic coming
from Ahmedabad which directly pass by (as the fuel pump is right
below the bridge) thus impacting RP's sales. During 7MFY23 it
posted total income of INR15.05 crore. Moreover, networth eroded
and stood negative as on March 31,2022 owing to withdrawal of
capital by one of the partners. However, the same is reinstated and
networth as on October 30,2022 stood at INR0.37 crore with overall
gearing of 9.59x as on October 30,2022.
* Low profitability: RP's operating margin stood relatively low
owing to service nature of business, wherein value addition in low.
Also, it has to pay HPCL a fixed fee of the sales done. PBILDT
margin declined in FY22 owing to lower commission income received
from HPCL (as the principal had reduced commission across owing to
increase in fuel prices). Owing to above coupled with interest and
depreciation expenses, PAT margin also stood negative.
* Leveraged capital structure and weak debt coverage indicator:
RP's stood leveraged owing to low networth base and high dependence
on external debt to fund its business operations. Further the
networth had eroded as on March 31,2022 due to withdrawal of the
capital by one of the partners for personal needs to honour a
commitment on personal front which was created all of a sudden. The
above had led to weak capital structure and debt coverage
indicators. However, the same is reinstated and networth as on
October 30,2022 stood at INR0.37 crore with overall gearing of
9.59x as on October 30,2022. Debt coverage indicators stood weak
owing to low cash accruals due to losses in FY22.
* Working capital intensive nature of operation: The operating
cycle of RP is moderately stretched primarily on the account of the
funds being blocked in receivables, leading to higher utilisation
of working capital limits at around 65% for past 12 months ended
November 2022. The receivables holding of the firm has remained
moderate as for diesel it has to grant around 15 days credit (as
those are mostly corporate clients). However, for petrol payment is
received on cash basis. On the other hand, it has to make advance
payment to HPCL for purchase of fuel. The above has led to
dependence on working capital borrowing for funding the operations.
The ability of RP to reduce the reliance on working capital
borrowings amidst the growing scale of business and increasing
competition would be critical from credit prospective.
* Constitution of entity being partnership entity: Being a
partnership firm, RP has inherent risk of withdrawal of partner's
capital at the time of personal contingency. Furthermore, it has
restricted access to external borrowings where net worth as well as
creditworthiness of the partner are the key factors affecting
credit decision of the lenders. Hence, limited funding avenues
along with limited financial flexibility have resulted in small
scale of operations for the firm.
* Intense competition and fragmented nature of the industry: The
fuel pump industry in India is highly fragmented with the presence
of numerous unorganized players in addition to the large players
leading to a high level of competition. The industry is susceptible
to various guidelines by Government of India, change in taxation
structure, impacting the industry.
Key rating strengths
* Experienced partners: RP is managed by Chaudhary family, current
partners Mr. Vipulkumar Chaudhary and Mrs. Geeta Chaudhary, have
more than two decades of experience in managing the business. Over
the years of their presence, they have established strong relations
in the market. The partners are supported by experienced management
team to carry out day to day activities.
Liquidity: Stretched
Liquidity position stood stretched marked by eroded networth as on
March 31,2022 and meagre cash accruals. The utilization for the
working capital limit stood with average and maximum utilization of
around 64.41% and 95.04% respectively for past twelve months ended
November 30,2022. The cash flow from operation stood negative as on
March 31, 2022.
Rajkamal Petrol & Diesel Service (RP) was established in 1976 as a
partnership firm by Mr. Chaudhary. Currently the firm is managed by
Mr. Vipulkumar Chaudhary and Mrs. Geeta Chaudhary. RP is engaged in
the business of operating a fuel pump at Mehasana in the main city
on Ahmedabad Palanpur highway. It has availed the dealership of
Hindustan Petroleum Corporation Limited (HPCL).
RAM NIWAS: CARE Lowers Rating on INR2cr Long Term Loan to B-
------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Ram Niwas & Company (RNC), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 2.00 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 13.00 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 December 24,
2021, placed the rating(s) of RNC under the 'issuer
non-cooperating' category as RNC 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. RNC
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated November 9, 2022, November 29, 2022, January 3,
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).
The ratings assigned to the bank facilities of RNC have been
revised on account of non-availability of requisite information.
Bikaner-based (Rajasthan), RNC was established as partnership firm
in 1989. Currently it is been managed by Shri Ram Niwas Tard, Shri
Sahab Ram Jangu, Shri Ram Swaroop Tard, Shri Om Prakash Jangu and
Shri Shankar Lal Jangu. The firm is engaged into construction and
maintenance of roads and sewage treatment plants for government
entities specifically in the state of Rajasthan. RNC is registered
"AA" class contractor for civil works.
RAM URBAN: NCLAT Upholds Removal of Resolution Professional
-----------------------------------------------------------
The Economic Times of India reports that the National Company Law
Appellate Tribunal (NCLAT) on Jan. 10 upheld the order of the
National Company Law Tribunal (NCLT), directing removal of the
resolution professional (RP) of Shree Ram Urban Infrastructure Ltd.
The appellate tribunal also directed the Insolvency and Bankruptcy
Board of India to conduct an enquiry against the RP and take
appropriate steps in accordance with the law.
A two-member NCLAT bench comprising Justices Rakesh Kumar and
Shreesha Merla said the NCLT was "well within its jurisdiction" to
pass an order for the removal of the RP, particularly in a
situation where he had not taken any steps to convene a meeting of
the Committee of Creditors (CoC), ET relates.
According to ET, the NCLAT observed that the Corporate Insolvency
Resolution Process (CIRP) was initiated against Shree Ram Urban
Infrastructure Ltd (SRUIL) on November 6, 2019, and the first CoC
meeting was conducted after more than one-and-a-half years on April
19, 2021.
NCLT "has categorically observed that the RP has 'miserably failed
to adhere to the timelines stipulated in the Code," said the
appellate tribunal.
The Mumbai bench of the NCLT had on November 11, 2022 directed
removal of Srigopal Choudary as the resolution professional of
Shree Ram Urban Infrastructure with a direction to hand over all
records/documents to the newly appointed Sapan Mohan Garg.
This order was challenged before the NCLAT, ET notes.
"We consider that it is a fit case in which a direction can be
issued to IBBI to conduct an inquiry regarding the conduct of the
appellant. Accordingly, IBBI is directed to conduct an in-depth
enquiry in respect of the conduct of the appellant and take
appropriate steps in accordance with the law," said NCLAT.
It had directed a copy of this order to be communicated to the
chairperson of IBBI, adds ET.
SAHYADRI HOSPITALS: Ind-Ra Withdraws 'BB' Long Term Issuer Rating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Sahyadri
Hospitals Private Limited's (SHL) Long-Term Issuer Rating of 'IND
BB' in the non-cooperating category and has simultaneously
withdrawn it.
The instrument-wise rating actions are:
-- INR150 mil. Fund-based working capital limits# maintained in
non-cooperating category and withdrawn;
-- INR5 mil. Non-fund-based working capital limits* maintained in
non-cooperating category and withdrawn; and
-- INR1,334.19 bil. Term loans$ due on June 2028 maintained in
non-cooperating category and withdrawn.
# Maintained at 'IND BB (ISSUER NOT COOPERATING)' before being
withdrawn
* Maintained at 'IND A4+ (ISSUER NOT COOPERATING)' before being
withdrawn
$ Maintained at 'IND BB (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 FY22,
sanctioned bank facilities and utilization levels, business plan
and projections for the next three years, information on corporate
governance, and management certificate.
Ind-Ra is no longer required to maintain the ratings, as the agency
has received a no-objection certificate and no-dues certificate
from the lenders. This is consistent with the Securities and
Exchange Board of India's circular dated March 31, 2017 for credit
rating agencies. Ind-Ra will no longer provide analytical and
rating coverage for the company.
Company Profile
SHL is one of the largest hospital chains in Maharashtra, with
eight operating hospitals. SHL's hospital assets comprise a mix of
direct ownership leases and operator arrangements with hospital
trusts.
SAI BALAJI: CARE Keeps D Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sri Sai
Balaji Associates (SSBA) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 0.60 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 6.90 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 24,
2021, placed the rating(s) of SSBA under the 'issuer
non-cooperating' category as SSBA 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. SSBA
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated October 10, 2022, October 20, 2022, October 30,
2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Kadapa (Andhra Pradesh) based, Sri Sai Balaji Associates was
established as a partnership firm in 2002 by Mr. Venkata Subba
Reddy and Mr. Pal Reddy. SSBA is engaged in civil construction
works like construction of canals, water tanks and under wiring
works relating to Department of Power Grid Corporation of India, in
Andhra Pradesh and Telangana. The firm purchases materials like
cement, steel, metal and CWD pipes from local suppliers located in
and around Andhra Pradesh and engage into construction works. Till
now, the firm has completed around 20 projects with total value of
about INR200.00 crore.
SAI ENTERPRISES: Ind-Ra Withdraws BB Long Term Issuer Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Sai Enterprises'
(SE) Long-Term Issuer Rating of 'IND BB (ISSUER NOT COOPERATING)'.
Key Rating Drivers
Ind-Ra has withdrawn SE's issuer rating following the withdrawal of
the provisional instrument ratings on July 9, 2021.
Company Profile
Established in 2005, SE is engaged in real estate development.
Basantraj Sethia and Sethia Infrastructure Pvt Ltd. are the
partners.
SALAS PHARMACEUTICALS: CARE Keeps B- Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Salas
Pharmaceuticals Private Limited (SPPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.44 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 SPPL under the 'issuer
non-cooperating' category as SPPL 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. SPPL
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).
SPPL was incorporated on November 13, 2009 and promoted by Mr. Prem
Sagar, Mr. Suman Chaudhary, Mr. Vindhya Prakash and Mr. Viresh
Kumar Verma, having more than 10 years of experience in
formulations and active pharmaceutical ingredients (API). Earlier,
the main business of SPPL was marketing of products of other
pharmaceutical companies. Subsequently, it developed and began
manufacturing of its own formulation products (medicines) on its
own brand name, i.e. Salas since March 22, 2017. The manufacturing
plant of the company is located at Kharpani, Mamring, South Sikkim,
Sikkim with an installed capacity of 1.00 crore tablets and 0.25
crore capsules annually.
SANVIJAY INFRASTRUCTURES: Ind-Ra Withdraws BB LT Issuer Rating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Sanvijay
Infrastructures Private Limited's (SIPL) Long-Term Issuer Rating of
'IND BB (ISSUER NOT COOPERATING)'.
Key Rating Drivers
Ind-Ra has withdrawn SIPL's Long-Term Issuer Ratings, following the
withdrawal of the provisional instrument ratings on 9 July 2021.
Company Profile
Incorporated in 2009, Sanvijay Infrastructures is a part of
Nagpur-based Sanvijay Group. The company galvanizes and fabricates
steel sections, and assembles them for transmission towers used in
the power and telecom transmission sector, microwave towers, and
over-head equipment structures for railways, pipe structures and
masts.
SCORE INFORMATION: Ind-Ra Hikes Long Term Issuer Rating to 'BB-'
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Score Information
Technologies Limited's (SITL) Long-Term Issuer Rating to 'IND BB-'
from 'IND B+'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR55 mil. Fund-based working capital limits upgraded with
IND BB-/Stable rating; and
-- INR100 mil. Non-fund-based limits upgraded with IND A4+
rating.
The upgrade reflects the overall improvement in SITL's financial
performance in 1HFY23, and the likelihood of continued improvement
in the same over the rest of FY23.
Key Rating Drivers
SITL witnessed a profit at the EBITDA level in 1HFY23, recording
absolute EBITDA of INR6.545 million and a margin of 4.8% (FY22:
loss of INR8.76 million; FY21: loss of INR4.91 million), led by
stabilization in input prices. The company had reported a loss in
FY22 owing to an increase in raw material costs. Ind-Ra expects the
margin to be higher on a yoy basis in FY23. Furthermore, SITL's
credit metrics improved in 1HFY23, supported by the improvement in
EBITDA. Ind-Ra expects the metrics to be better on a yoy basis in
FY23, backed by higher EBITDA.
SITL recorded a revenue of INR135.82 million in 1HFY23 (FY22:
INR333.42 million; FY21: INR214.86 million). As of November 2022,
the company had an orderbook of INR199 million, to be completed by
FYE23. The scale of operations continued to be small. In FY22, the
revenue had increased by 55% yoy due to an increase in the number
of orders, which had accumulated over FY21 owing to delays in
execution of projects. Ind-Ra expects the revenue to be stable on
a yoy basis in FY23.
Liquidity Indicator – Stretched: SITL's average utilization of
the fund-based limits was 86.39% during the 12 months ended
September 2022. Also, the cash flow from operations turned positive
at INR33.18 million in FY22 (FY21: negative INR72.51 million) due
to favorable changes in the working capital. The cash and cash
equivalent stood at just INR0.09 million at FYE22 (FYE21:INR0.15
million). In FY22, the working capital cycle improved to 168 days
(FY21: 378 days), on account of a decline in the inventory days to
53 days (143 days), an increase in the creditor days to 73 days
(FY21: 27 days) and a fall in debtor days to 187 days (262). The
creditor days improved because of SITL's enhanced ability to
negotiate terms with its vendors. While the debtor days improved,
it remained elongated due to delayed payments from customers, which
are mostly public sector units. Moreover, the company relies on
single bank funding and does not have access to the capital market.
SITL does not have any long-term debt obligations.
The ratings are supported by SITL being a part of the Kolkata-based
Kankaria group, which is among the largest jute manufacturers in
India. SITL has received support from the group's non-banking
financial companies in the form of unsecured loans (FY20: INR86.66
million) in the past. The company's bank facilities are guaranteed
by the group's promoter. Ind-Ra expects SITL to continue to receive
support from the group over the long term.
Rating Sensitivities
Negative: A decline in the scale of operations, leading to
deterioration in the credit metrics, with the interest coverage
being below 1.5x on a sustained basis and/or absence of timely
support from the group could lead to a negative rating action.
Positive: Improvement in the scale of operations, leading to an
improvement in the credit metrics, on a sustained basis, could lead
to a positive rating action.
Company Profile
Incorporated in 2000, SITL operates in the information and
technology sector and is mainly involved in closed- circuit
television surveillance system integration. It also deals in the
issue of smart cards, installation of public address systems,
software development and maintenance and smart card application
solutions. The company has its registered office in Kolkata.
SHAKTI RICE: CARE Keeps B- Debt Rating in Not Cooperating Category
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shiv Shakti
Rice Mills - Moonak (SSRMM) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 8.00 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 24,
2021, placed the rating(s) of SSRMM under the 'issuer
non-cooperating' category as SSRMM 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. SSRMM continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated October 10, 2022, October 20,
2022, October 30, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The entity was established in April, 1988 as a partnership firm
under the name of Mahaluxmi Trading Company. Later, in 1995, the
name was changed to its current name and in May 2008 , the business
was taken over by its current partners, Mr. Vikas Bansal, Mr.
Rajinish Kumar and Mrs. Krishna Devi. The firm is engaged in
processing of paddy at its manufacturing facility located in
Sangrur, Punjab.
SHANKAR RAMCHANDRA: Ind-Ra Moves BB+ Rating to Non-Cooperating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Shankar Ramchandra
Earth Movers Private Limited's Long-Term Issuer Rating to the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR70.00 mil. Fund-based working capital limits migrated to
non-cooperating category with IND BB+ (ISSUER NOT
COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating;
-- INR240.00 mil. Non-fund-based working capital limits migrated
to non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating; and
-- INR69.08 mil. Term loan due on December 2022 migrated to non-
cooperating category with IND BB+ (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
November 30, 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 1994, Shankar Ramchandra Earth Movers is a Class I
A contractor in the engineering, procurement and construction
segment. The company is engaged in civil construction of roads,
bridges, irrigation and civil work from railways.
SHIV SHAKTI: CARE Keeps B- Debt Rating in Not Cooperating Category
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shiv Shakti
Rice Mills - Moonak (SSRMM) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 8.00 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 24,
2021, placed the rating(s) of SSRMM under the 'issuer
non-cooperating' category as SSRMM 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. SSRMM continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated October 10, 2022, October 20,
2022, October 30, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The entity was established in April, 1988 as a partnership firm
under the name of Mahaluxmi Trading Company. Later, in 1995, the
name was changed to its current name and in May 2008 , the business
was taken over by its current partners, Mr. Vikas Bansal, Mr.
Rajinish Kumar and Mrs. Krishna Devi. The firm is engaged in
processing of paddy at its manufacturing facility located in
Sangrur, Punjab.
SHIV SHAKTI: Ind-Ra Withdraws 'B' Long Term Issuer Rating
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Shiv Shakti
Modern Rice Mill Private Limited's (SSMRMPL) Long-Term Issuer
Rating of 'IND B (ISSUER NOT COOPERATING)'.
Key Rating Drivers
Ind-Ra has withdrawn SSMRMPL's issuer rating following the
withdrawal of the provisional instrument ratings on 9 July 2021.
Company Profile
SSMRMPL was incorporated in 2013 by Birendra Kumar, Ram Krishna
Kumar and Monika Kumari for setting up a paddy processing plant in
the Raxaul city, Bihar.
SILVERSTONE ELASTOMER: Ind-Ra Withdraws B- LT Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Silverstone
Elastomer Private Limited's (SEPL) Long-Term Issuer Rating of 'IND
B- (ISSUER NOT COOPERATING)'.
Key Rating Drivers
Ind-Ra has withdrawn the issuer rating of SEPL following the
withdrawal of the provisional instrument ratings on July 9, 2021.
Company Profile
Incorporated in May 2013, SEPL is setting up a facility for the
manufacture of tread rubber (2,400 metric tons per annum) and
the mixing of rubber compounds (12,000 metric tons per annum).
SREEALANKAR GOLD: Ind-Ra Withdraws B+ Long Term Issuer Rating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Sreealankar Gold
Hub Private Limited's (SGHPL) Long-Term Issuer Rating of 'IND B+
(ISSUER NOT COOPERATING)'.
Key Rating Drivers
Ind-Ra has withdrawn SGHPL's issuer rating following the withdrawal
of the provisional instrument ratings on July 9, 2021.
Company Profile
SGHPL was incorporated in 2014 for setting up a jewelry showroom in
the Berhampur city of Odisha.
SURYA TELECOM: CARE Keeps B- Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Surya
Telecom Private Limited (STPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 2.85 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 7.00 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 STPL under the 'issuer
non-cooperating' category as STPL 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. STPL
continues to be noncooperative 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).
Surya Telecom Private Limited (STPL) was incorporated in 1998 and
is currently being managed by Mr Anil Sharma and Mr Ravinder Pushp.
STPL is engaged in the trading and installation of electronic
security and communication systems like analogue radios, HF radios,
high end security and safety products like Asset tracking systems,
Passenger Information Systems, etc.
SWAMIJI TRANSMISSION: Ind-Ra Withdraws B+ Long Term Issuer Rating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Swamiji
Transmission Private Limited's (STPL) Long-Term Issuer Rating of
'IND B+ (ISSUER NOT COOPERATING)'.
Key Rating Drivers
Ind-Ra has withdrawn STPL's issuer rating following the withdrawal
of the provisional instrument ratings on July 9, 2021.
Company Profile
STPL manufactures all types of insulator hardware parts/fittings,
conductors and earth wire accessories, clamps and connectors, and
others.
USHAHKAL ABHINAV: Ind-Ra Hikes Long Term Issuer Rating to BB+
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Ushahkal Abhinav
Speciality Hospital LLP's (UASHL) Long-Term Issuer Rating to 'IND
BB+' from 'IND BB-'. The Outlook is Stable.
The instrument-wise rating action is:
-- INR1.10 bil. Term loan due on March 2031 upgraded with
IND BB+/Stable rating.
The upgrades reflects the commencement of full commercial
operations of UASHL's hospital in Sangli from June 2022, although
delayed, and the continued presence of financial support from
promoters/ investors for meeting debt servicing requirements.
Key Rating Drivers
UASHL commenced full commercial operations from June 2022 with
revenue of INR396 million in 9MFY23, against the scheduled period
of December 2021 with management's expectation to book revenue of
INR462.6 million in FY22. According to the management, the delay
was induced by COVID-19 led disruptions in equipment supplies
especially electronics from Europe. In FY23, the management expects
to achieve revenue of around INR550 million on account of the
increase in the business operations. The ratings are constrained
due to the nascent stage of operations. As per the management, the
occupancy will be around 42% in FY23 and 60% in FY24. FY24 will be
the first full year of operations.
The ratings reflect the modest EBITDA margins. As per the
management, UASHL reported an EBITDA loss of INR20.4 million in
6MFY23 since June 2022, which reduced to INR8.0 million in 9MFY23.
However, the management expects EBITDA to turn positive by
end-FY23. Ind-Ra expects the EBITDA to turn positive by end-FY23
and improve significantly in FY24, on account of improving
operating leverage.
The ratings also reflect the firm's weak credit metrics as UASHL
has a term loan of INR1,100 million and guaranteed emergency credit
Line 1.0 extension of INR43.8 million, for which principal
repayments will start from February 2023 and October 2024,
respectively. Furthermore, UASHL has sought a fund-based limit of
INR150 million, which the management expects to be sanctioned in
January 2023.
Liquidity indicator - Stretched: There was an increase in the total
cost of the project to INR2,076 million (bank debt 55%, promoters
contribution 42% and unsecured loans 3%) from INR1,786 million, as
the project evolved over time to include more critical departments
based on market and post covid demand. Moreover, the firm does not
have access to the capital market and has bank lines from a single
bank. The debt repayment schedule has been deferred by four months
due to the delay in the commencement of operations. The repayment
obligations, which will commence from February 2023, stand at
INR18.4 million for FY23 (earlier was INR55.2 million) and INR110.4
million for FY24.
The instrument rating continues to derives comfort from the
presence of a debt service reserve account equivalent to three
months' principal and interest. Also, UASHL has been formed through
a collaboration of various designated doctor-partners, with the
promoters having an experience of over two decades in the
healthcare industry. Moreover, UASHL's project is multi
super-speciality hospital in the city of Sangli, Maharashtra,
signaling limited competition.
Rating Sensitivities
Negative: Any deterioration in the scale of operations leading to
deterioration in the credit metrics and/or deterioration in
liquidity position, would be negative for the ratings.
Positive: Substantial improvement in the scale of operations,
leading to an improvement in the credit metrics with net leverage
below 3.5x, and an improvement in the liquidity position, would be
positive for the ratings.
Company Profile
UASHL, incorporated in November 2016, has set up a multi-super
specialty hospital named Ushahkal Abhinav Institute of Medical
Sciences with over 356 beds in Sangli, Maharashtra, spread across a
land area four acres and built-up area of 0.425 million square
feet. The hospital will offer healthcare services in around 28
areas (earlier 22 areas), including urology , nephrology,
pathology, surgery and cardiology.
UTTAR BHARAT: Ind-Ra Withdraws BB Long Term Issuer Rating
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Uttar Bharat
Hydro Power Private Limited's (UBHPPL) Long-Term Issuer Rating of
'IND BB (ISSUER NOT COOPERATING)'.
The instrument-wise rating action is:
-- The IND BB rating on the INR1.570 bil. Term loan due on
November 2020 is withdrawn.
Key Rating Drivers
Ind-Ra is no longer required to maintain the ratings, as it has
received a no-dues certificate from the rated facilities’
lender.
Company Profile
Incorporated in 1991, UBHP has set-up three small hydro power
projects in Kapkot, Uttarakhand with a total installed capacity of
33MW.
V. SATYA: CARE Keeps C Debt Rating in Not Cooperating Category
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of V. Satya
Murthy (VSM) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 3.00 CARE C; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Long Term/ 11.00 CARE C/CARE A4; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 26,
2021, placed the rating(s) of VSM under the 'issuer
non-cooperating' category as VSM 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. VSM
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).
M/s V. Satya Murthy was established as proprietary concern in
November, 2003 by Mr. Vemula Satya Murthy. The propriety concern is
engaged in the civil construction business as a special class
contractor. It is engaged in the works like laying of roads and
irrigation works for government organizations covering Irrigation &
C.A.D. Department. Mr. Murthy is a special class contractor and has
experience of more than two decades in civil contract works.
VASUDHA AGRO: Ind-Ra Withdraws 'B+' Long Term Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Vasudha Agro Food
Products Private Limited's (VAFPPL) Long-Term Issuer Rating of 'IND
B+ (ISSUER NOT COOPERATING)'.
Key Rating Drivers
Ind-Ra has withdrawn VAFPPL's issuer ratings, following the
withdrawal of the provisional instrument ratings on July 9, 2021.
Company Profile
VAFPPL was incorporated in 2015 for setting up a food processing
plant in Hajipur city, Bihar (around 21km from Patna) to produce
grit and flour from maize and rice as main products, and maize
germs and maize fiber as by-products. The plant was expected to be
operational from October 2017.
VIKRAM TRADERS: CARE Keeps B- Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Vikram
Traders (VT) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 11.00 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 28,
2021, placed the rating(s) of VT under the 'issuer non-cooperating'
category as VT 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. VT 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).
Bangalore based, Vikram Traders (VT) was established in the year
1984 by Mr. Mangilal Gupta along with six other partners. However,
in the year 2013, the firm was reconstituted with three new
partners' viz. Mr. Meetesh Bhandari, Mr. Vikram Bhandari and Mr.
Sumeet Bhandari sharing profits and losses equally. The firm is
engaged in trading of fabrics with major product being rolled denim
fabric. The firm sells its products to various wholesalers located
in Bangalore and Maharashtra region. Its major customers included
Unitex Apparels Private Limited, Prateek Apparels Private Limited
and Famous Fashion. The fabric is mainly procured from the
suppliers based out in Maharashtra and Rajasthan like Raymond Uco
Denim Pvt Ltd, RSWM Limited, and Century Denim.
=========
J A P A N
=========
ANA HOLDINGS: Egan-Jones Retains CCC Senior Unsecured Ratings
-------------------------------------------------------------
Egan-Jones Ratings Company on December 28, 2022, maintained
its'CCC' foreign currency and local currency senior unsecured
ratings on debt issued by ANA Holdings Inc. EJR also upgraded the
rating on commercial paper issued by the Company to B from C.
ANA Holdings Inc. operates as a holding company, which provides
domestic and international air transportation services. The company
was founded on February 9, 1930 and is headquartered in Tokyo,
Japan.
RAKUTEN GROUP: S&P Affirms BB Rating on $500MM Sr. Unsecured Bond
-----------------------------------------------------------------
S&P Global Ratings affirmed its 'BB' issue credit rating to Rakuten
Group Inc.'s (BB/Negative/--) U.S. dollar-denominated senior
unsecured bonds ($500 million; issued in November 2022; due in
2024) following the company's announcement of a potential
additional issuance.
S&P said, "We equalize the issue rating on Rakuten's U.S. dollar
-denominated senior unsecured bonds with our long-term issuer
credit rating on the Japan-based internet services company. This
reflects our view that more senior debt (secured debt and
subsidiaries' debt) accounts for a very small portion of the
nonfinancial unit's debt and does not significantly subordinate the
bonds to other debt.
"We base our rating on Rakuten mainly on three factors. One, it has
a leading position in Japan's e-commerce market thanks to a strong
brand and solid ecosystem that includes financial services. Two,
there is a prospect of deeply negative free operating cash flow
(FOCF) and very weak financial standing continuing in the
nonfinancial unit in the coming 12 months due to slow improvement
in the mobile business. And three, there is strong profitability in
the financial unit, which invests funds, mainly from retail
deposits, in relatively high-yield, small-lot assets. However, the
support that the financial unit offers to overall creditworthiness
is gradually waning.
"The outlook on the long-term issuer credit rating is negative,
reflecting our view of an at least one-in-three chance that the
nonfinancial unit's performance and finances will fall short of our
assumptions in fiscal 2023 (ending Dec. 31, 2023). This may occur
if the mobile business is slow to acquire customers or reduce
costs."
S&P may consider a downgrade if it sees a heightened likelihood of
both the following scenarios.
-- The nonfinancial unit's EBITDA and FOCF in fiscal 2023 becoming
substantially weaker than we currently assume, owing to, for
example, slow improvement in the mobile business' performance;
and,
-- Fundraising throughout fiscal 2023 relying heavily on debt.
S&P may consider revising the outlook to stable if it sees a
heightened likelihood of either of the following scenarios.
-- Capital expenditures in the nonfinancial unit shrinking in line
with S&P's assumptions for fiscal 2023 and thereafter and Rakuten
raising a considerable amount of nondebt funds in fiscal 2023,
thereby curbing growth in debt; or,
-- EBITDA from the nonfinancial unit turning positive in the
coming 12 to 18 months.
===============
M A L A Y S I A
===============
SERBA DINAMIK: High Court Allows Winding-up of Company, 3 Units
---------------------------------------------------------------
theedgemarkets.com reports that the High Court on Jan. 10 allowed a
petition by six financial institutions to wind up Serba Dinamik
Holdings Bhd, and its three companies, Serba Dinamik International
Ltd (SDIL), Serba Dinamik Sdn Bhd and Serba Dinamik Group Bhd, over
debts totalling about MYR5 billion.
According to the report, judicial commissioner Ahmad Murad Abdul
Aziz allowed a petition filed by Standard Chartered Saadiq Bhd,
HSBC Amanah Malaysia Bhd, AmBank Islamic Bhd, MIDF Amanah
Investment Bank Bhd, United Overseas Bank (Malaysia) Bhd, and Bank
Islam Malaysia Bhd, and granted an order to wind up the four
companies, which are in debt to the tune of some M5YR billion.
Upon being wound up, the companies will be placed under Victor Saw,
a liquidator from PricewaterhouseCoopers (PWC), the report notes.
theedgemarkets.com relates that Ahmad Murad earlier heard an
application by the companies to postpone Jan. 10's hearing of the
winding-up proceedings after counsel Ranjit Singh - a legal
representative of Efire Capital Holdings Ltd, an Abu Dhabi company
that is a 50% joint venture between SDIL and an Abu Dhabi firm -
argued that Efire Capital should be allowed to sell its assets
first to help repay the debt.
Ranjit argued that Efire Capital should be allowed to intervene in
the matter, and be given one to 1.5 months to dispose of the assets
to help pay off some of the debts before the winding-up, as it
would be harder to sell the assets at a better price after the
winding-up. Moreover, he argued that the winding-up would also
affect the joint venture, the report says.
Ranjit further pointed out that the interim liquidator can only act
for the holding company, but not the joint-venture company, which
would be subject to Abu Dhabi law.
"I am also not certain of the assets to be sold off said to be
worth RM700 million and hence need the time," he added.
However, the application to adjourn was objected to by Datin
Jeyanthini Kannaperan, who represented the syndicated lenders,
Benjamin Dawson, who appeared for the bilateral lenders in HSBC
Amanah and HSBC Bank, and Karen Tan, who appeared for Hong Leong
Islamic Bank, according to the report.
Previously, the Serba companies had offered to pay 15% of their
debts to the local lenders by August 31 last year, and the
remaining amount by the end of last year, but had failed to do so,
says theedgemarkets.com.
Moreover, Jeyanthini revealed that the companies had failed to make
obligatory statutory payments, including those that relate to the
Employees Provident Fund (EPF) and Social Security Organisation
(Socso) for the staff. She said that the debt to the petitioner
syndicated lenders, which she represented, amounted to about MYR1.7
billion.
"The interim liquidator report on Aug. 23 conclusively showed the
companies are commercially insolvent," she stressed,
theedgemarkets.com relays.
About Serba Dinamik
Serba Dinamik Holdings Berhad provides engineering solutions. The
Company offers operation and maintenance, system integration,
training, civil works, planning, procurement, construction, and
commissioning services. Serba Dinamik Holdings operates facilities
in Malaysia, Indonesia, UAE, Bahrain, and the United Kingdom.
Serba Dinamik slipped into PN17 status in January 2022, after its
external auditor Nexia SSY PLT expressed a disclaimer of opinion
over its audited financial statements for the 18-month financial
period ended June 30, 2021.
Nexia had said that a number of factors had constrained its
completion of the group's audit, including the non-availability of
a report on an independent review conducted by Ernst & Young
Consulting Sdn Bhd.
=====================
N E W Z E A L A N D
=====================
AWESOME AWNINGS: Creditors' Proofs of Debt Due on Feb. 17
---------------------------------------------------------
Creditors of Awesome Awnings Limited, Tank Fort Street Limited and
Reynolds Roofing Limited are required to file their proofs of debt
by Feb. 17, 2023, to be included in the company's dividend
distribution.
Awesome Awnings Limited commenced wind-up proceedings on Dec. 16,
2022.
Tank Fort Street Limited commenced wind-up proceedings on Dec. 21,
2022.
Reynolds Roofing Limited commenced wind-up proceedings on Dec. 22,
2022.
The companies' liquidator is:
Paul Vlasic
Rodgers Reidy (NZ) Limited
Licensed Insolvency Practitioners
PO Box 45220
Te Atatu, Auckland
FEDERATION HOMES: BDO Tauranga Limited Appointed as Liquidator
--------------------------------------------------------------
Paul Thomas Manning and Kenneth Peter Brown of BDO Tauranga on Dec.
19, 2022, were appointed as liquidators of Federation Homes Limited
and BC Administration Limited.
The liquidators may be reached at:
BDO Tauranga Limited
Level 1, The Hub
525 Cameron Road
PO Box 15660
Tauranga 3144
MACWAL LIMITED: Creditors' Proofs of Debt Due on Jan. 25
--------------------------------------------------------
Creditors of Macwal Limited are required to file their proofs of
debt by Jan. 25, 2023, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Dec. 21, 2022.
The company's liquidator is:
Victoria Toon
Corporate Restructuring Limited
Chartered Accountants
PO Box 10100
Dominion Road
Auckland 1446
MY TRUSTEE: Creditors' Proofs of Debt Due on Jan. 20
----------------------------------------------------
Creditors of My Trustee Company (Nik and Pet) Limited are required
to file their proofs of debt by Jan. 20, 2023, to be included in
the company's dividend distribution.
The company commenced wind-up proceedings on Dec. 16, 2022.
The company's liquidators are:
Gareth Russel Hoole
Clive Robert Bish
Ecovis KGA Limited, Chartered Accountants
PO Box 37223
Parnell, Auckland
THIS IS ELECTRIC: Waterstone Appointed as Administrator
-------------------------------------------------------
Damien Mitchell Grant and Adam Stevenson Botterill of Waterstone on
Dec. 23, 2022, were appointed as administrators of This Is Electric
NZ Limited.
The administrators may be reached at:
Waterstone Insolvency
16 Piermark Drive
Rosedale
Auckland 0632
===============
P A K I S T A N
===============
PAKISTAN: Staring at Bankruptcy as Forex Reserves Dive to 8-Yr Low
------------------------------------------------------------------
The Economic Times reports that Pakistan is staring at bankruptcy
as the country's foreign exchange reserves plunged to an 8-year low
of $5.6 billion. This will cover less than one month of imports.
With loan repayments to be made, many analysts and economists are
saying that the country may face a balance of payments crisis in
the coming months, the report says.
According to ET, Pakistan needs to raise more than $26 billion to
repay foreign debts and reduce its massive current account deficit.
Nearly 30% of Pakistan's foreign debt is owed to China. ET relates
the dwindling of forex reserves leaves Pakistan with import cover
for only over a month. In the next three months, the country has to
pay $8.3 billion to external debtors.
ET notes that the release of $1.1 billion that was originally
scheduled to be disbursed by the IMF in November of last year has
yet to be approved, resulting in Pakistan having insufficient
foreign exchange reserves to cover only one month's worth of
imports.
The primary concerns are meeting the obligations of foreign debt
and acquiring essential goods such as medicine, food, and energy,
the report states. As a result, thousands of shipping containers
are currently stranded at the port of Karachi, as the banks are
unable to provide assurance for foreign exchange payments. The
cargo includes perishable food items and medical equipment, which
have a combined value of tens of millions of dollars.
According to the report, Pakistan's economy worsened after the
recent floods that inundated a third of the nation and halved its
growth. With inflation rates hovering around 25% the country is
facing one of its worst financial crises. Videos on social media
show people protesting on the streets for food as prices of
essential food items have skyrocketed in the country.
The economy has been in a state of collapse, due in part to an
ongoing political crisis, causing the value of the rupee to drop
significantly and inflation to reach its highest levels in decades,
ET notes. The situation has been made worse by the recent
devastating floods and an energy crisis affecting the entire
globe.
Economists anticipate a humanitarian and healthcare catastrophe in
Pakistan if the State Bank of Pakistan, Ministry of Finance, and
other organizations do not take decisive measures to prevent it, ET
relays.
According to ET, Pakistan typically seeks financial aid from allies
like China and Saudi Arabia, but analysts have suggested that these
countries are hesitating to provide assistance until Pakistan
receives approval from the IMF.
Saudi Fund for Development is likely to conduct a study on
increasing its deposits in Pakistan's central bank to $5 billion
from $3 billion. Pakistan is also planning to seek an extension of
a $2.1 billion loan from China, its all-weather ally, in March.
Malls and markets were ordered to close by 8:30 p.m. as part of
measures to conserve energy, the report says. As per government
calculation steps to shut markets, including restaurants, would
save around 62 billion Pakistani rupees ($273 million). Various
departments within the government have been told to reduce
electricity consumption by 30%.
About Pakistan
Pakistan is a country located in South Asia. It has a coastline
along the Arabia Sea and the Gulf of Oman and is bordered by
Afghanistan, China, India, and Iran. Pakistan's capital is
Islamabad.
As reported in the Troubled Company Reporter-Asia Pacific on Dec.
27, 2022, S&P Global Ratings lowered its long-term sovereign credit
rating on Pakistan to 'CCC+' from 'B-', and the short-term rating
to 'C' from 'B'. The outlook on the long-term rating is stable. S&P
also lowered its long-term issue rating on Pakistan's senior
unsecured notes to 'CCC+' from 'B-'.
The TCR-AP reported in October 2022, Fitch Ratings has downgraded
Pakistan's Long-Term Foreign-Currency Issuer Default Rating (IDR)
to 'CCC+' from 'B-'. Fitch typically does not assign Outlooks to
sovereigns with a rating of 'CCC+' or below.
=================
S I N G A P O R E
=================
HU AN CABLE: Creditors' Meetings Set for Feb. 27
------------------------------------------------
Hu An Cable Holdings Limited will hold a meeting for its creditors
on Feb. 27, 2023, at 11:00 a.m., via electronic means.
Agenda of the meeting includes:
a. to lay before the creditors a full statement of the affairs
of the Companies, showing the assets and liabilities of the
Companies;
b. to consider the nomination of the Liquidators for the
Company and on the appointment of Mr Ong Shyue Wen and
Mr Saw Meng Tee as the Liquidators of the Company;
c. to appoint a Committee of Inspection if deemed necessary;
and
d. to consider any other matter which may properly be brought
before the meeting.
The company's provisional liquidators are:
Ong Shyue Wen
Saw Meng Tee
EA Consulting Pte Ltd (a subsidiary of EisnerAmper PAC)
1 North Bridge Road
#23-05 High Street Centre
Singapore 179094
PHILLIP STREET: Creditors' Proofs of Debt Due on Feb. 6
-------------------------------------------------------
Creditors of Phillip Street Partners (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. 31, 2022.
The company's liquidators are:
Lin Yueh Hung
Goh Wee Teck
c/o 8 Wilkie Road
#03-08 Wilkie Edge
Singapore 228095
STRAITS PACOM: Creditors' Proofs of Debt Due on Feb. 6
------------------------------------------------------
Creditors of Straits Pacom Pte. Ltd., Straits Data Services Pte.
Ltd., and Straits Radio Private Limited are required to file their
proofs of debt by Feb. 6, 2023, to be included in the company's
dividend distribution.
The companies commenced wind-up proceedings on Dec. 31, 2022.
The liquidators can be reached at:
Gary Loh Weng Fatt
Leow Quek Shiong
Seah Roh Lin
c/o BDO Advisory Pte Ltd
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
YANG KEE: Court to Hear Judicial Management Petition on Jan. 19
---------------------------------------------------------------
A petition to place the operations of Yang Kee Logistics Pte Ltd
under the judicial management of judicial managers will be heard
before the High Court of Singapore on Jan. 19, 2023, at 2:30 p.m.
Yap Sze Kam filed the petition against the company on Dec. 23,
2022.
The Petitioner's solicitors are:
PK Wong & Nair LLC
2 Shenton Way
#16-02 SGX Centre 1
Singapore 068804
ZAOBAO.COM LTD: Creditors' Proofs of Debt Due on Feb. 6
-------------------------------------------------------
Creditors of Zaobao.Com 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. 31, 2022.
The company's liquidators are:
Gary Loh Weng Fatt
Leow Quek Shiong
c/o BDO Advisory Pte Ltd
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
=================
S R I L A N K A
=================
SRI LANKA: Says Treasury Running Dry, Cuts Spending
---------------------------------------------------
AFP reports that bankrupt Sri Lanka announced on Jan. 10 sharp
government spending cuts and warned it had barely enough revenue to
pay public salaries and pensions despite huge tax hikes.
According to AFP, the island nation has defaulted on its $46
billion public debt and is negotiating an International Monetary
Fund (IMF) bailout after an unprecedented economic crisis last year
brought widespread misery.
AFP relates that President Ranil Wickremesinghe ordered a five per
cent reduction in state spending this week and his administration
warned on Jan. 10 that welfare payments for 1.8 million families
below the poverty line could be delayed this month.
"The president informed the cabinet yesterday that the economic
crisis this year is going to be worse than what we expected,"
government spokesman Bandula Gunawardana told reporters.
Gunawardana said the government expected the economy to contract
further this year after shrinking an estimated 8.7pc in 2022, the
report relays.
"We will not get the projected tax revenue because this year too
the economy will shrink," he said.
Sri Lanka needs to achieve debt sustainability as a precondition to
secure a $2.9 billion IMF loan, the report notes.
AFP adds the lender has also asked Colombo to trim its 1.5
million-strong public service, sharply raise taxes and sell off
loss-making state enterprises.
Key creditors such as China and India are yet to agree upon a
"haircut" on their loans to the South Asian nation, which has
stalled Sri Lanka's efforts to restructure its debt, the report
notes.
Doubled personal income and corporate taxes kicked in on New Year's
Day to shore up state revenue.
Electricity prices are also rising another 65% after a 75% tariff
increase in August, the repot adds.
About Sri Lanka
Sri Lanka, formerly known as Ceylon and officially the Democratic
Socialist Republic of Sri Lanka, is an island country in South
Asia. It lies in the Indian Ocean, southwest of the Bay of Bengal,
and southeast of the Arabian Sea; it is separated from the Indian
subcontinent by the Gulf of Mannar and the Palk Strait. Sri Lanka
shares a maritime border with India and the Maldives. Sri
Jayawardenepura Kotte is its legislative capital, and Colombo is
its largest city and financial centre.
Sri Lanka has been mired in turmoil amid surging inflation, a
plummeting currency and an economic crisis that has left the
country short of the hard currency it needs to import food and
fuel, according to Bloomberg News. Public anger has boiled over
into violent protests and led the government to announce in April
2022 it would halt payments on its US$12.6 billion pile of foreign
debt to preserve cash for essential goods.
That marks the nation's first sovereign debt default since it
gained independence from Britain in 1948, Bloomberg said. Its bonds
are among the worst performers in the world in 2022 and trade deep
in distressed territory, with holders bracing for losses
approaching 60 cents on the dollar.
Sri Lanka's crisis sparked months of mass protests and eventually
forced then president Gotabaya Rajapaksa to flee the country.
On July 20, 2022, Ranil Wickremesinghe was elected as Sri Lanka's
new head of state backed by a majority of lawmakers from ousted
leader Gotabaya Rajapaksa's party.
Sri Lanka is in talks with the International Monetary Fund for a
bailout and needs to negotiate a debt restructuring with
creditors.
As reported in the Troubled Company Reporter-Asia Pacific in
December 2022, Fitch Ratings has downgraded Sri Lanka's Long-Term
Local-Currency Issuer Default Rating (IDR) to 'CC', from 'CCC', and
has affirmed the Long-Term Foreign-Currency IDR at 'RD' (Restricted
Default). Fitch typically does not assign Outlooks to ratings of
'CCC+' or below. Fitch has also removed the Long-Term
Local-Currency IDR from Under Criteria Observation, on which it was
placed on July 14, 2022, following the publication of the updated
Sovereign Rating Criteria.
*********
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
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TCR-AP subscription rate is US$775 for 6 months delivered via e-
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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 ***