/raid1/www/Hosts/bankrupt/TCRAP_Public/230116.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Monday, January 16, 2023, Vol. 26, No. 12
Headlines
A U S T R A L I A
AK COMMERCIAL: Second Creditors' Meeting Set for Jan. 23
ENCOMPASS COMMUNITY: First Creditors' Meeting Set for Jan. 24
GT CAPITAL: Second Creditors' Meeting Set for Jan. 20
HALLBURY HOMES: Placed in Administration
RODINIA RESOURCES: Commences Wind-Up Proceedings
WIMMERA MALLEE: Commences Wind-Up Proceedings
C H I N A
DALIAN WANDA: Fitch Gives BB Rating to Proposed USD Sr. Unsec Notes
FOSUN INTERNATIONAL: Lines Up US$1.8BB Syndicated Credit Line
WAKANDA PROPERTIES: Moody's Rates New Senior Unsecured Bond 'Ba3'
H O N G K O N G
GOLDIN FINANCIAL: Former HQ Sells for 'Significant Discount'
I N D I A
AARTI SUITINGS: CARE Keeps D Debt Ratings in Not Cooperating
ADYARAJ DEVELOPERS: CARE Lowers Rating on INR1.00cr Loan to B-
APRAJITA MICROFINANCE: ICRA Assigns B Rating to INR3.0cr LT Loan
BABANARAYAN HIMGHAR: CARE Keeps B- Debt Rating in Not Cooperating
CONSTRUCTIONS & LEISURE: CARE Cuts Rating on INR14.30cr Loan to C
ESTEEM INDUSTRIES: CARE Lowers Rating on INR1.20cr Loan to B-
EXCLUSIVE OVERSEAS: CARE Lowers Rating on INR17.71cr Loan to D
FRIENDS ELECTRICALS: CRISIL Lowers Rating on INR3.50cr Loan to B
IFP PETRO: CARE Keeps B+ Debt Rating in Not Cooperating Category
JAYA SURYA: ICRA Withdraws B Rating on INR7.50cr Term Loan
JET AIRWAYS: Tribunal Allows Ownership Transfer to Consortium
KESHAVA MEDI: CRISIL Keeps B+ Debt Ratings in Not Cooperating
KUBER INFRA: CRISIL Keeps B Debt Rating in Not Cooperating
LAXMI INDUSTRIAL: CRISIL Keeps B Debt Ratings in Not Cooperating
MAHADEV BUILDING: CARE Keeps B- Debt Rating in Not Cooperating
NETMATRIX CROP: ICRA Withdraws B+ Rating on INR16.95cr LT Loan
PADMA POLYMERS: CARE Keeps B- Debt Rating in Not Cooperating
PERFECT INFRACORP: Ind-Ra Keeps BB Issuer Rating in NonCooperating
RAC PAPERS: CARE Keeps C Debt Rating in Not Cooperating Category
RADHAKRISHNA OIL: CRISIL Keeps B+ Debt Rating in Not Cooperating
RAINBOW FOUNDATIONS: Ind-Ra Assigns BB Long Term Issuer Rating
RANGANATHASWAMY JEWELLARY: CARE Keeps D Rating in Not Cooperating
SANDOR LIFESCIENCES: ICRA Keeps D Debt Rating in Not Cooperating
SARAVANA INDUSTRIES: Ind-Ra Affirms B+ Long Term Issuer Rating
SHANNON AND SHANNON: CARE Keeps B- Debt Ratings in Not Cooperating
SHIVALAKHA SOLAR: ICRA Lowers Rating on INR75.36cr Loan to B+
SHORAPUR SOLAR: ICRA Lowers Rating on INR36.25cr Term Loan to B
SITSON INDIA: CRISIL Keeps B Debt Rating in Not Cooperating
SK. SAMIR: CRISIL Keeps B+ Debt Rating in Not Cooperating
SMPL LIFE: CRISIL Keeps B Debt Rating in Not Cooperating Category
SOLCEN INFRA: CRISIL Keeps B Debt Ratings in Not Cooperating
SVL LIMITED: ICRA Withdraws D Rating on INR650cr NCD
TRANSPORT CORPORATION: CRISIL Keeps B Rating in Not Cooperating
VASAVI EXPORTS: CRISIL Keeps B Debt Ratings in Not Cooperating
ZEBION INFOTECH: Ind-Ra Affirms BB- Long Term Issuer Rating
I N D O N E S I A
LIPPO KARAWACI: Moody's Puts 'B3' CFR on Review for Downgrade
M A L A Y S I A
CAPITAL A: Optimistic of Exiting PN17 Status By Year-End
M O N G O L I A
MONGOLIA: Fitch Assigns 'B' Rating on Proposed USD Sr. Unsec Bonds
N E W Z E A L A N D
CAFE MONET: Creditors' Proofs of Debt Due on March 3
UPTOWN HOLDINGS: Court to Hear Wind-Up Petition on March 2
VAC-U-DIGGA NZ: Cor Cordis Appointed as Liquidator
WAITAKARURU HONEY: Court to Hear Wind-Up Petition on March 2
WORK FORCE: Creditors' Proofs of Debt Due Jan. 31
P A K I S T A N
PAKISTAN: Premier Says UAE Extends US$2B Loan, Offers US$1B More
P H I L I P P I N E S
NORTHERN FOODS: Abolition Underway Amid Losses, Non-Performance
S I N G A P O R E
COMMERZ ASSET: Creditors' Proofs of Debt Due on Feb. 12
DELTA LINK: Court Enters Wind-Up Order
KREUZ SUBSEA: Commences Wind-Up Proceedings
PARAMINDO SINGAPORE: Commences Wind-Up Proceedings
SUNTECCITY THIRTY: Court to Hear Wind-Up Petition on Jan. 18
S R I L A N K A
CEYLON ELECTRICITY: Fitch Cuts National LongTerm Rating to 'B(lka)'
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A U S T R A L I A
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AK COMMERCIAL: Second Creditors' Meeting Set for Jan. 23
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A second meeting of creditors in the proceedings of:
- AK Commercial Construction Pty Ltd;
- AK Commercial Interiors Pty Ltd;
- AK Commercial Construction (ACT) Pty Ltd;
- AK Commercial Pty Limited;
- AGKP Management Pty Limited; and
- Tilton Group Pty Ltd
has been set for Jan. 23, 2023 at 2:00 p.m. at the offices of RSM
Australia Partners at Equinox Building 4, Level 2, 70 Kent Street,
in Deakin, ACT, 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. 20, 2023 at 4:00 p.m.
Frank Lo Pilato, Jonathon Colbran and Richard Stone of RSM
Australia Partners were appointed as administrators of AK
Commercial et al. on Dec. 7, 2022.
ENCOMPASS COMMUNITY: First Creditors' Meeting Set for Jan. 24
-------------------------------------------------------------
A first meeting of the creditors in the proceedings of Encompass
Community Services Incorporated will be held on Jan. 24, 2023, at
11:00 a.m. at the offices of Rydges Geelong at Myers St &,
Gheringhap Street in Geelong, and via virtual meeting technology.
Scott Andersen and Nathan Deppeler of Worrells were appointed as
administrators of the company on Jan. 12, 2023.
GT CAPITAL: Second Creditors' Meeting Set for Jan. 20
-----------------------------------------------------
A second meeting of creditors in the proceedings of GT Capital
Partners Pty Ltd has been set for Jan. 20, 2023 at 10:00 a.m. at
Level 15, 125 St Georges Terrace in Perth, and via virtual meeting
technology.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Jan. 19, 2023 at 4:00 p.m.
Simon Theobold and Robert Ditrich of PwC were appointed as
administrators of the company on Dec. 6, 2022.
HALLBURY HOMES: Placed in Administration
----------------------------------------
The Property Tribune reports that Melbourne-based home builder
Hallbury Homes has collapsed.
Having operated for over 30 years, Hallbury appointed administrator
Menzies Advisory principal Michael Caspaney on Jan. 11.
The Property Tribune relates that Mr. Caspaney said 20 Hallbury
employees were impacted by the administration.
The company was operating 50 projects across 42 sites in
Melbourne.
No dollar figure, in terms of what is owed to creditors, has been
provided, the report notes.
It appears Hallbury was troubled by the slow build speed for its
project which severely impacted cash flow.
The company is under the directorship of Glenn Nathan Smith and
Clifford Anthony Hall, and is owned by Boynis Pty and CHFT Pty Ltd
who are controlled by the duo respectively, The Property Tribune
discloses.
RODINIA RESOURCES: Commences Wind-Up Proceedings
------------------------------------------------
Members of Rodinia Resources Pty Ltd on Jan. 11, 2023, passed a
resolution to voluntarily wind up the company's operations.
The company's liquidator is:
Mathew Gollant
CJG Advisory
Suite 3, Level 2
443 Little Collins Street
Melbourne, VIC 3000
WIMMERA MALLEE: Commences Wind-Up Proceedings
---------------------------------------------
Members of Wimmera Mallee Commodities Trading Pty Ltd on Jan. 13,
2023, passed a resolution to voluntarily wind up the company's
operations.
The company's liquidator is:
Nathan Deppeler
Worrells
Level 14, 570 Bourke Street
Melbourne, VIC 3000
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C H I N A
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DALIAN WANDA: Fitch Gives BB Rating to Proposed USD Sr. Unsec Notes
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Fitch Ratings has assigned a rating of 'BB' to Dalian Wanda
Commercial Management Group Co., Ltd.'s (Wanda Commercial,
BB+/Stable) proposed US dollar senior unsecured notes, which will
be issued by its wholly owned subsidiary, Wanda Properties Global
Co. Limited.
The proposed notes are rated at the same level as Wanda Commercial
Properties (Hong Kong) Co. Limited's (Wanda HK, BB/Stable) senior
unsecured rating, as they will be unconditionally and irrevocably
guaranteed by Wanda HK, Wanda Real Estate Investments Limited and
Wanda Commercial Properties Overseas Limited. In addition, Wanda
Commercial has granted a keepwell deed and a deed of equity
interest purchase undertaking to ensure the issuer has sufficient
assets and liquidity to meet its note obligations.
Wanda Commercial follows the "stronger subsidiary" path under
Fitch's Parent and Subsidiary Linkage (PSL) Rating Criteria, and is
rated one notch above the consolidated profile of its 44% owner,
Dalian Wanda Group Co., Limited (Wanda Group). Fitch assesses Wanda
Commercial's Standalone Credit Profile (SCP) at 'bbb+', which is
supported by its large asset scale and healthy recurring EBITDA
interest coverage of above 2x.
Wanda HK is Wanda Commercial's sole offshore financing platform and
overseas investment-holding company. Under the PSL criteria, Wanda
HK follows the "stronger parent" path and is rated one notch below
Wanda Commercial's rating, based on our assessment of 'Weak' legal
incentive, 'Medium' strategic incentive and 'High' operational
incentive for the parent to provide support. Wanda HK is 100% owned
by Wanda Commercial.
KEY RATING DRIVERS
Parent Constrains Ratings: Wanda Commercial's ratings are
constrained by its parent's consolidated profile, which Fitch
assessed at 'bb'. The consolidated profile is supported by the
group's large asset base and net debt/investment property value of
51% in 2021 and 55% in 1H22. The group's holding-company (holdco)
interest coverage of 1.0x in 2021 is low relative to that of 'BB'
rated peers.
Fitch thinks the parent holdco's liquidity is adequate as most of
its short-term debt is onshore bank loans and the group continues
to demonstrate strong funding access. Wanda Group plans to borrow
new bank loans or use cash from disposal of offshore subsidiaries
(around USD1.5 billion mainly from the sales of 100% of AMC and 20%
of Legendary Entertainment in 2021-2022) to repay a USD380 million
bond due March 2023, after fully redeeming a USD550 million bond
due July 2022.
Linkage Factor Assessments: Under Fitch's PSL criteria, Wanda
Commercial is rated under the "strong subsidiary" approach, with
its ring-fencing linkage to the parent assessed as 'Open', as there
is no covenanted mechanism to limit the parent's access to its cash
flow. Fitch assesses the access and control factor as 'Porous' as
related-party transactions require the approval of a significant
minority shareholder, who has board representation. The two
companies share three directors and have independent cash and
funding policies.
Diversified Portfolio Supports SCP: Wanda Commercial's SCP of
'bbb+' reflects a property portfolio in line with that of 'A' rated
companies due to its large size, asset diversification and
resilient performance. Fitch expects its rental and management fee
recurring income to continue to rise by 6% in 2022 from CNY43
billion in 2021. Management said China's Covid-19 resurgence in
2022 did not have a material impact as most of the rental income is
fixed.
Asset-Light Model: Fitch believes Wanda Commercial's asset-light
mall ramp-up cuts its capex needs and supports its near-term
financial profile. Management said the company operated 183
asset-light malls owned by third parties out of a total of 472 at
end-2022. Fitch believes Wanda Commercial will continue to open
around 50 malls in 2023, after opening 55 in 2022, with over 80%
under the asset-light model, in which it operates the malls and
receives around 30% of the rental profit. Fitch capitalises CNY500
million-600 million of fixed leases at 8.0x adjusted debt, in line
with its Corporate Rating Criteria.
Margin Decline: Wanda Commercial's recurring EBITDA margin will
narrow from 42% in 1H22 and 50% in 2020 towards its asset-light
malls' gross margin of 30%-40% in the long run, as the company
continues to expand its asset-light business. It books 100% of the
revenue under the asset-light model, but subtracts the owners'
profit share as variable leases and expenses. Fitch thinks the
margin drop reflects the change in business model rather than a
deterioration in the underlying business.
Adequate Interest Coverage: Wanda Commercial's recurring EBITDAR
interest coverage improved to 2.2x in 2021 and 1H22 from 1.9x in
2020 due mainly to recovery from the pandemic. Wanda Commercial's
recurring EBITDA interest coverage is slightly lower than that of
'BBB' rated peers, but this is mitigated by its large cash balance
and investments in entrusted loans and wealth-management products,
which provide additional financial flexibility. Fitch expects the
interest coverage to rise towards 2.5x by 2024.
Subsidiary's Potential IPO: Wanda Commercial aims to list its
asset-light subsidiary, Zhuhai Wanda Commercial Management Ltd., by
end-2023. Fitch treats CNY38 billion in pre-IPO funds received in
2021 as debt due to repurchase obligations if Zhuhai Wanda is not
listed by end-2023.
Fitch thinks the IPO will be beneficial in the medium term as it
will raise financial transparency and cut leverage, while no
immediate rating impact is expected. Fitch will deduct Zhuhai
Wanda's non-controlling interest (NCI) dividend from Wanda
Commercial's recurring EBITDA as the subsidiary distributed almost
100% of net profit to investors, reducing Wanda Commercial's cash
flow available for interest servicing.
DERIVATION SUMMARY
For Wanda Commercial
Wanda Commercial's investment-property portfolio is comparable with
those of major global investment-property companies, such as Swire
Properties Limited (A/Stable) and Unibail-Rodamco-Westfield SE
(BBB+/Negative). Wanda Commercial's strong retail mall portfolio is
in line with that of 'A' rated property-investment companies due to
its large size, asset diversification and strong operational
performance throughout business cycles.
Wanda Commercial's credit metrics are weaker than that of peers as
its recurring EBITDA interest coverage of around 2.0x is lower than
the peer average of more than 5.5x.
For Wanda HK
Wanda HK's ratings are supported by the linkage with its parent,
Wanda Commercial. The linkage can be compared with pairs such as
Vanke Real Estate (Hong Kong) Company Ltd (Vanke HK, BBB+/Stable)
and its parent, China Vanke Co., Ltd. (BBB+/Stable); Hengli (Hong
Kong) Real Estate Limited (BBB+/Stable) and its parent, Poly
Developments and Holdings Group Co., Ltd. (BBB+/Stable). The
subsidiaries are all positioned as their parents' main offshore
financing platforms.
However, Fitch considers Wanda Commercial's legal incentive to
support Wanda HK as 'Low', in contrast to the two peers' 'Medium'
assessment. This is the reason for rating Wanda HK one notch below
its parent while the ratings of Vanke HK and Hengli are equalised
with those of their parents.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
- Wanda Commercial will open 50 new Wanda Plazas in 2023 with
around 80,000 sq m of leasable floor area each, out of which 40
malls will be under the asset-light business model.
- Rental and property management fee gross profit margin of around
66% in 2022-2023.
- Rental and property management fee income of CNY46 billion and
CNY48 billion in 2022 and 2023, respectively.
- Capex of CNY4 billion in 2023.
- Available cash balance (including 40% of wealth-management
products) to be maintained at CNY40 billion-50 billion in 2023.
- No equity financing cash inflow due to timing uncertainty.
RATING SENSITIVITIES
For Wanda Commercial
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- Improvement in Wanda Group's information transparency and
consolidated credit profile
- Weakened linkage with Wanda Group
- Full restoration of capital-market access
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Deterioration in Wanda Group's consolidated credit profile
- Strengthened linkage with Wanda Group
- Wanda Commercial's recurring EBITDAR - NCI dividend/interest +
fixed lease coverage below 2x for a sustained period
For Wanda HK
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- Improvement in Wanda Commercial's IDR
- Strengthened linkage with Wanda Commercial
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Deterioration in Wanda Commercial's IDR
- Weakened linkage with Wanda Commercial
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity: Wanda Commercial had CNY33 billion in available
cash at end-September 2022, sufficient to cover CNY28 billion in
short-term debt. At the same time, Fitch estimates the company had
around CNY23 billion in wealth-management products - similar to
end-1H22 - mostly issued by commercial banks with less than one
year to maturity, and CNY30 billion in short-term tradable
financial investments.
Wanda Commercial has CNY18 billion in bond maturities in 2023,
including CNY15 billion in onshore bonds and USD400 million in
offshore bonds, while the remaining short-term debt is almost all
onshore bank loans secured against investment properties. Wanda
Commercial does not have syndicated loans offshore and trust loans
account for 1% of the total debt.
Wanda HK also had sufficient liquidity with a cash balance of
CNY4.2 billion at end-1H22 and CNY3 billion in short-term debt.
Fitch also expects liquidity support from Wanda Commercial, if
necessary.
ISSUER PROFILE
Wanda Commercial is the largest shopping mall owner in China, and
one of the largest commercial property owners rated by Fitch.
SUMMARY OF FINANCIAL ADJUSTMENTS
Fitch's estimate of CNY19 billion in recurring EBITDA in 2021 is
based on the gross profit disclosure adjusted for estimated selling
and administrative expenses, depreciation and interest on lease
liabilities. Fitch has not included investment and interest income
of CNY2.6 billion in 2021 in its calculation of recurring EBITDA.
Fitch adjusted CNY39.6 billion from Zhuhai Wanda's pre-IPO
investment (including interest, according to the audited report)
into debt as it comprises the repurchase obligation. Fitch also
capitalised a CNY543 million fixed lease with the 8.0x multiple.
ESG CONSIDERATIONS
Wanda Commercial's ESG Relevance Score for Financial Transparency
was revised to '4' from '5' because Wanda Group's financial
disclosure to Fitch is improving. Fitch has some access to its
management but it is not assured of consistent access to the
financial information of Wanda Group and its principal
subsidiaries. The uncertainty over Wanda Group's financial
transparency has a negative impact on the credit profile, and is
highly relevant to the rating.
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
Entity/Debt Rating
----------- ------
Wanda Properties
Global Co. Limited
senior unsecured LT BB New Rating
FOSUN INTERNATIONAL: Lines Up US$1.8BB Syndicated Credit Line
-------------------------------------------------------------
Caixin Global reports that debt-laden private conglomerate Fosun
International Ltd. secured a long-sought credit line of CNY12
billion (US$1.8 billion) from a group of banks led by state-owned
Industrial & Commercial Bank of China Ltd., Caixin learned from the
lenders and people familiar with the matter.
Shanghai Fosun High Technology Group Co., a key subsidiary of Fosun
International, signed the loan agreements on Jan. 12 with the
lenders, which also include China Minsheng Bank, Shanghai Pudong
Development Bank and HSBC Bank (China) Co. Ltd., Caixin says.
About Fosun International
Fosun International Limited provides diversified services. The
Company offers products and services for families in health,
happiness, and wealth businesses. Fosun International serves
clients worldwide.
As recently reported in the Troubled Company Reporter-Asia Pacific,
Moody's Investors Service has downgraded to B2 from B1 the
corporate family rating of Fosun International Limited. At the same
time, Moody's has also downgraded to B2 from B1 the senior
unsecured bonds issued by Fortune Star (BVI) Limited and
unconditionally and irrevocably guaranteed by Fosun. Moody's has
changed the outlook on all ratings to negative from ratings under
review. This concludes the review for downgrade initiated on
September 30, 2022.
"The downgrade reflects Fosun's weak liquidity, recent fast and
significant decline of the market value of its listed assets which
erodes its funding headroom, and the execution risk related to the
company's fundraising plans amid capital market volatility and
prevalent risk averse sentiment. Moody's are also concerned that
accelerated divestments or pledge of good quality assets will lead
to a faster-than-expected weakening of Fosun's portfolio size and
quality, as well as its financial flexibility, which no longer
supports its previous B1 rating," says Lina Choi, a Moody's Senior
Vice President.
The negative outlook reflects the refinancing uncertainties and
execution risks of asset sales to repay Fosun's sizable debt
maturing over the next 12 months, and the company's ongoing
challenges in balancing liquidity needs and maintaining its
investment portfolio quality.
WAKANDA PROPERTIES: Moody's Rates New Senior Unsecured Bond 'Ba3'
-----------------------------------------------------------------
Moody's Investors Service has assigned a Ba3 rating to the senior
unsecured bond issued by Wanda Properties Global Co. Limited.
The rating outlook on Wanda Properties Global Co. Limited is
stable.
The proposed bond is guaranteed by Wanda Commercial Properties (HK)
Co. Limited (Wanda HK, Ba3 stable) and supported by deeds of equity
interest purchase undertakings and keepwell deeds between Dalian
Wanda Commercial Management Group Co., Ltd. (DWCM, Ba1 stable),
Wanda HK and the bond trustee.
Wanda Properties Global Co. Limited is a wholly-owned subsidiary of
Wanda HK, which is a wholly-owned subsidiary of DWCM.
"The proposed bond will lengthen DWCM and Wanda HK's debt maturity
profile and will not have a material impact on their credit
metrics, since DWCM will use the proceeds mainly to refinance
offshore debt," says Alfred Hui, a Moody's Analyst.
RATINGS RATIONALE
DWCM's Ba1 corporate family rating (CFR) reflects its strong brand
and track record of developing and operating commercial properties
in China. The rating also considers the company's adequate
liquidity and sizable, stable recurring leasing and management fee
income and cash flow from its investment property portfolio.
On the other hand, DWCM's Ba1 CFR is constrained by its exposure to
lower-tier cities and execution risks related to its expansion plan
amid fast-changing business conditions, as well as its private
company status. However, corporate governance risk associated with
its private company status is tempered by the presence of an
investment consortium including Tencent Holdings Limited (A1
stable) and other investors, who appoint their representatives to
the board of directors to balance the interests of the
shareholders, creditors and other stakeholders.
Moody's expects DWCM's operations to gradually recover in 2023, as
the easing of COVID restriction measures in China is likely to
support retail sales and in turn, DWCM's retail mall occupancy and
rental incomes. Accordingly, DWCM's adjusted net debt/ EBITDA, will
improve to 4.3x in 2023 from an estimated level of 4.7x in 2022,
while its EBITDA interest coverage will improve to 3.2x from 2.8x
over the same period. These projected ratios continue to support
DWCM's Ba1 CFR.
DWCM's liquidity is adequate, underpinned by its large cash
holdings of RMB34.8 billion and short-term investments of RMB46.8
billion as of September 30, 2022 with sizable and stable rental and
management fee income. Moody's expects these cash resources to be
sufficient to cover DWCM's maturing debt, committed capital
expenditure (capex) for the company's portfolio of shopping malls
and potential repurchase obligation of the pre-IPO capital of its
commercial property management arm over the next 12-18 months.
Wanda HK's Ba3 CFR reflects the company's standalone credit profile
plus a two-notch uplift based on Moody's expectation that the
company will receive support from its parent DWCM in times of
need.
Moody's expectation of support considers DWCM's 100% ownership of
Wanda HK, the parent's full control over the company, Wanda HK's
role as the primary platform for DWCM's offshore funding and
investment, as well as DWCM's track record of providing timely
funding support to Wanda HK.
Wanda HK's standalone credit profile is constrained by its small
operating scale, exposure to the seasonality and volatile operating
conditions of its hotel business, weak liquidity, weak credit
metrics for its standalone credit profile and thin equity base.
These weaknesses are mitigated by operational and funding supports
from its parent.
In terms of environmental, social and governance factors, Moody's
has considered DWCM's private company status with concentrated
ownership by its ultimate shareholder, Mr. Wang Jianlin, who
directly and indirectly owned a 53% equity stake in DWCM as of end
of 2021. Moody's has also considered DWCM's prudent financial
strategy to control debt funding needs when pursuing its business
aspirations.
Moody's has also taken into account Wanda HK's private company
status and low corporate transparency. However, DWCM's 100%
ownership of the company and history of providing support to its
subsidiary mitigate these risks.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
The stable rating outlook on DWCM reflects Moody's expectation that
DWCM will maintain solid financial metrics that support its Ba1
CFR, and have sufficient cash resources to cover its operating and
refinancing needs over the next 12-18 months.
The stable rating outlook on Wanda HK primarily reflects Moody's
expectation that DWCM will continue to provide financial support to
the company in times of stress, given the close linkages between
the two companies.
Moody's could upgrade DWCM's Ba1 CFR if the company strengthens its
corporate governance and disclosure standards in line with other
publicly listed companies; achieves its business growth plan and
maintains stable financial metrics and strong liquidity on a
sustained basis.
On the other hand, DWCM's Ba1 CFR could be downgraded if the
company's liquidity weakens, growth in leasing and management
income is slower than Moody's expects or credit metrics
deteriorate.
Credit metrics that would be indicative of negative rating pressure
include adjusted net debt/EBITDA rising above 6.0x-6.5x and
EBITDA/interest coverage falling below 2.0x on a sustained basis.
In addition, any significant leakage of funds from DWCM or a
substantial deterioration in the company's corporate governance and
transparency could strain its rating.
Upward pressure on Wanda HK's CFR could develop if Wanda HK's
standalone credit profile strengthens, DWCM's CFR is upgraded and
Wanda HK's strategic and economic importance to the parent
increases.
On the other hand, a downgrade of DWCM's CFR will result in a
downgrade of Wanda HK's CFR and the ratings of its guaranteed
bonds.
Furthermore, Wanda HK's rating could face downward pressure if its
standalone credit profile deteriorates, there is a reduction in the
level of ownership by DWCM or the strategic and economic importance
of the company to DWCM reduces.
The principal methodology used in this rating was Business and
Consumer Services published in November 2021.
Dalian Wanda Commercial Management Group Co., Ltd. (DWCM) develops
and operates commercial properties in China. As of the end of March
2022, the company operated 420 retail malls in China, comprising
285 portfolio shopping malls.
As of December 31, 2021, the company was 44.31% owned by Dalian
Wanda Group Co., Ltd. (Dalian Wanda Group). The chairman of Dalian
Wanda Group, Wang Jianlin, also directly and indirectly owned a
53.25% stake in the company as of the same date. In addition, an
investment consortium led by Tencent Holdings Limited and
comprising JD.com, Inc. (Baa1 stable), Sunac China Holdings Limited
and Suning Commerce Group Co., Ltd. owned a 14.2% stake in the
company.
Wanda Commercial Properties (HK) Co. Limited is the primary
offshore funding and investment platform for DWCM. The company's
main assets include a 65.04% equity interest in Hong Kong-listed
Wanda Hotel Development Company Limited.
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H O N G K O N G
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GOLDIN FINANCIAL: Former HQ Sells for 'Significant Discount'
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South China Morning Post reports that the former headquarters of
embattled Goldin Financial Holdings has been bought by PAG and a
Singaporean investment firm for HK$5.6 billion (US$713 million),
according to a statement from the joint venture.
The confirmation of the acquisition ends more than two years of
legal wrangling over the 28-storey office building, known as the
Goldin Financial Global Centre (GFGC), the Post says.
The Post relates that PAG said the price agreed on by PAG, a
pan-Asian investment company, and Singapore government-backed
Mapletree Investments, is well below market value.
"GFGC is an iconic building in Hong Kong's [second central business
district], and represents very good value at a significant discount
to replacement cost," the Post quotes J-P Toppino, PAG's president,
as saying in the statement.
"This transaction further expands PAG Real Assets' footprint in
Hong Kong, where we see the ongoing post-Covid recovery creating
attractive opportunities for us and our investors."
In September, several local media outlets reported that the
property in the Kowloon Bay district was sold for between HK$6.5
billion and HK$7 billion, a long way shy of its estimated value of
HK$10 billion, the report recalls. It is unclear whether the
acquisition confirmed on Jan. 12 is the same deal referred to in
those reports.
The acquisition is a "great opportunity to own a high-quality
office building, boosting our presence in Hong Kong's commercial
sector at an attractive price," said Wong Mun Hoong, regional chief
executive officer, Australia and North Asia, for Mapletree, the
Post relays.
"With the reopening of the border with China and the easing of
travel restrictions, we are confident in the recovery of the office
sector in Hong Kong," he added.
Hong Kong-listed Goldin Financial holds Chinese tycoon Pan Sutong's
finance and property development businesses. The firm and its
creditors have been engaged in a tussle since July 2020 over who
controlled the building, which the developer has used as collateral
for loans, the Post states. Pan resigned as Goldin's chairman in
June last year.
In September 2020, the receivers appointed Knight Frank to sell the
tower after the developer failed to meet its debt obligations, the
Post recalls. But two days later, Goldin said it had entered into a
provisional sale-and-purchase agreement for the building with an
independent third party for HK$14.3 billion.
Two months after that, however, the receivers said the company had
no right to sell it. Then, in October the same year, the Hong Kong
High Court ruled that Pan, Goldin's chairman back then, had lost
control of its assets to creditors.
According to the Post, the receivers sold the building, located at
17 Kai Cheung Road, for a reported HK$14 billion later that year,
but failed to complete the deal.
The property received LEED platinum and BEAM Plus platinum
certification upon completion in 2016, the highest global and Hong
Kong local industry standards for healthy, sustainable and
cost-saving green buildings.
The Post notes that Goldin has been selling its assets in recent
years to pare down a mountain of debt. In 2020, the company agreed
to sell a residential plot at Kai Tak at an estimated record loss
of HK$2.57 billion.
It is also looking for a buyer for half-completed twin towers in
Guangzhou Science City, with a starting price of CNY1.64 billion
(US$242 million).
Goldin is facing a petition for liquidation in Bermuda and a
bankruptcy petition in Hong Kong owing to its debts, the Post
notes. Pan, a billionaire, was also ordered by the Hong Kong High
Court in July to wind up one of his holding companies over unpaid
liabilities of HK$8 billion owed to China Citic Bank. The order is
being appealed.
PAG Real Assets, the property business of PAG, has more than US$10
billion in equity under management across the Asia-Pacific region,
the Post discloses. Over the past two decades, it has bought and
managed over 7,000 properties across the Asia-Pacific region, in
sectors that include office and logistics, hotel, retail, digital
infrastructure and renewables.
Mapletree, a unit of Singapore's Temasek Holdings, owns Festival
Walk, an upscale Hong Kong shopping centre. It manages a portfolio
of SGD78.7 billion (US$59.1 billion) in property assets including
offices, industrial buildings, data centres, retail and residential
premises in markets such as Asia-Pacific, Europe and the US.
Based in Hong Kong, Goldin Financial Holdings Ltd is a diversified
company. The Company's operations include Factoring, Wine
Production and Sales and Property Investment and Development.
=========
I N D I A
=========
AARTI SUITINGS: CARE Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Aarti
Suitings Private Limited (ASPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 16.72 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 0.55 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 30,
2021, placed the rating(s) of ASPL under the 'issuer
non-cooperating' category as ASPL 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. ASPL
continues to be noncooperative 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).
Bhilwara based Aarti Sutings Private Limited (ASPL) was
incorporated in 1994 by Mr. Nand Kishore Jindal, Mr. Madhur Jindal
and Mrs. Nidhi Jindal. The company is engaged in the manufacturing
of grey fabrics and sells grey and finished fabrics in the market.
The company gets processing work done on job work basis from other
processing units. The company is also engaged in trading of grey
and finished fabrics.
ADYARAJ DEVELOPERS: CARE Lowers Rating on INR1.00cr Loan to B-
--------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Adyaraj Developers Private Limited (ADPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 1.00 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 4.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 27,
2021, placed the rating(s) of ADPL under the 'issuer
non-cooperating' category as ADPL 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. ADPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated September 12, 2022, September 22, 2022, October
2, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of ADPL have been
revised on account of non-availability of requisite information.
Adyaraj Developers Private Limited was incorporated in June 2005
with its office located at Patna, Bihar. Since its inception, the
entity has been engaged in civil construction business in the
segment like building and bridges. Further, the entity is also
classified as class 'I' contractor in civil (B&R) under the
department of PWD Government of Bihar and East central railway
department. Class 'I' contractor can bid for all types and higher
value of contracts of Public Works Department (PWD) in Bihar. Mr.
Jitendra Kumar Roy have almost two decades of experience in civil
construction industry, he looks after the day to day operations of
the entity along with other directors (i.e. Mr. Priyatam Roy, Mr.
Ramsagar Prasad Yadav and Mr. Amrendra Kumar Amar). Directors are
ably supported by other technical and non-technical professionals
who are having long experience in this industry.
APRAJITA MICROFINANCE: ICRA Assigns B Rating to INR3.0cr LT Loan
----------------------------------------------------------------
ICRA has assigned rating to the bank facilities of Aprajita
Microfinance Association's (Aprajita), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term
unallocated 3.00 [ICRA]B (Stable); assigned
Rationale
The assigned rating factors in Aprajita modest scale of operations
and high geographical concentration. The company was incorporated
in November 2015 and reported assets under management (AUM) of
INR0.87 crore as on October 31, 2022. Aprajita's operations are
geographically concentrated with a presence in only one district of
Bihar. In addition, it remains exposed to the volatility of its
asset quality indicators as it lends to low-income segment
borrowers, who are more prone to income shocks. ICRA also notes
that Aprajita's growth has been driven by fund infusions from
shareholders and limited debt fund raising so far. Its ability to
raise additional funds and diversify its lender base is yet to be
established.
The rating, however, takes into consideration the steady growth in
its portfolio, albeit on a small scale, and the experience of the
promoter team in the relevant area of operations. ICRA notes that
Aprajita has been able to maintain comfortable asset quality
indicators with nil gross non-performing assets (GNPAs) and nil net
NPAs (NNPAs).
Going forward, Aprajita would need to raise funds (both debt and
equity) to grow and expand its presence geographically. The
company's ability to improve its scale of operations, while
maintaining control on its asset quality, would be a key
monitorable.
Key rating drivers and their description
Credit strengths
* Track record and experience of management team in microfinance
lending: Aprajita was incorporated in 2015 and has been involved in
the microfinance business in Bihar (in Patna district) for the past
seven years. It offers loans at an average interest rate of 18% to
its borrowers with an average ticket size of INR30,000. The company
has been able to achieve healthy growth in its scale with its AUM
increasing by 26% in FY2022 and 27% (annualised) in 7M FY2023.
Credit challenges
* Modest scale of operations: The company's scale of operations
remains modest with its AUM at INR0.87 crore as on October 31, 2022
(INR0.76 crore as on March 31, 2022). The growth is driven by the
limited fund raise and promoters' equity.
* Geographically concentrated portfolio in one state: Aprajita is a
Patna-based microfinance company, and its operations are
concentrated in only one district of Bihar. ICRA expects the
operations to remain concentrated in Bihar over the near term. Any
meaningful diversification would take time.
* Ability to raise funds yet to be established: The borrowing
profile comprised loans from directors, an overdraft limit from
Punjab National Bank (PNB) and a Guaranteed Emergency Credit Line
(GECL). Going forward, the growth in the portfolio would be driven
by the availability of additional funding, for which the company is
in discussions with banks. Aprajita's ability to raise funds to
meet its growth plans would be critical.
* Vulnerable borrower profile: Even though the GNPAs and NNPAs are
nil and Aprajita has been able to maintain good collection
efficiency, it remains exposed to asset quality fluctuations. The
low-income segment borrowers remain vulnerable to income shocks,
which could impact their debt repayment capacity. This poses asset
quality risks for the company.
Liquidity position: Stretched
Aprajita's liquidity is stretched with a free cash and bank balance
of ~INR11 lakh as of October 2022 against total debt of ~INR80 lakh
as on October 31, 2022. The debt comprises ~INR15 lakh of the GECL
limit, INR15 lakh loan from directors and a shortterm line of INR50
lakh overdraft.
Rating sensitivities
Positive factors – A healthy growth in the scale of operations
along with the ability to maintain good asset quality and
profitability indicators and a prudent capitalisation structure on
a sustained basis could lead to a rating upgrade.
Negative factors – A deterioration in the asset quality
indicators, resulting in pressure on the profitability indicators,
and inability to maintain a prudent capitalisation profile could
lead to a rating downgrade.
Aprajita Microfinance Association (Aprajita) is an unlisted private
company incorporated in November 2015. It was started by Mr. Nand
Kishor Paswan and his brother, Mr. Vivek Kumar. Aprajita currently
operates in Patna district as a microfinance institution.
BABANARAYAN HIMGHAR: CARE Keeps B- Debt Rating in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of
Babanarayan Himghar Private Limited (BHPL) continue to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.39 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 0.14 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 26,
2021, placed the rating(s) of BHPL under the 'issuer
non-cooperating' category as BHPL 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. BHPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated September 11, 2022, September 21, 2022, October
1, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Incorporated in January 2012, Babanarayan Himghar Private Limited
(BHPL) was promoted by Mr Saikat Nandan and Mr Tapas Nanshi for
setting up a cold storage facility. BHPL has started its commercial
operations from March 2015. The company has been engaged in cold
storage services for potatoes to farmers and traders on a rental
basis. The coldstorage facility of the company is located at
Paschim Midnapur in West Bengal with a storage capacity of 162200
quintals. Besides providing cold storage facility the company also
works as a mediator between the farmers and marketers of potato, to
facilitate sale of potatoes stored and it also provides interest
bearing advances to farmers for farming purposes against potato
stored.
CONSTRUCTIONS & LEISURE: CARE Cuts Rating on INR14.30cr Loan to C
-----------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Shree Constructions & Leisure Private Limited (SCLPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 14.30 CARE C; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE B-
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 29,
2021, placed the rating(s) of SCLPL under the 'issuer
non-cooperating' category as SCLPL 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. SCLPL 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).
The rating has been revised on account of non-availability of
requisite information. The revision also considers the negligible
scale of operations during FY21 and FY22.
Shree Construction and Leisure Pvt Ltd (SCLPL) incorporated in
September 2010 by Mr. Ranjeet Singh and Mrs. Kiranjeet Kaur. SCLPL
operates a hotel under the brand name of 'Rajnes's Hotel' at
Lucknow, Uttar Pradesh. The hotel has 61 rooms, banquet hall (400
person capacity), mini banquet hall (100 person capacity),
conference room and restaurant. The hotel commenced its commercial
operations in May, 2015. SCL has many corporate tie ups with
companies like Vodafone, Uninor, Allahabad Bank etc.
ESTEEM INDUSTRIES: CARE Lowers Rating on INR1.20cr Loan to B-
-------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Esteem Industries Inc. (EII), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 1.20 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated December 9,
2021, placed the rating(s) of EII under the 'issuer
non-cooperating' category as EII 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. EII
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated October 25, 2022, November 14, 2022 and January
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 have been revised on account of non-availability of
requisite information.
The entity was established as a partnership firm in 1984 under the
name of "Vikrant Equipments". However, in January 2007, the firm
changed its name to "Esteem Industries Inc." and is currently being
managed by Mr. Mahendra Tandon, Mr Vipul Tandon and Mrs Roma
Tandon, as its partners. EII is engaged in the manufacturing,
trading and installation of medical, surgical and scientific
laboratory instruments such as autoclaves, sterilisers, medical
equipment, hospital furniture, consumable products, personal
protection equipment, pathology products, etc, at its manufacturing
facility located in Baddi, Himachal Pradesh.
EXCLUSIVE OVERSEAS: CARE Lowers Rating on INR17.71cr Loan to D
--------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Exclusive Overseas Private Limited (EOPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 17.71 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE C
Long Term/ 8.00 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category and
Revised from CARE C/CARE A4
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 29,
2021, placed the rating(s) of EOPL under the 'issuer
non-cooperating' category as EOPL 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. EOPL
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 and January 5, 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 rating has been revised on account of non-availability of
requisite information. The ratings also consider ongoing delays in
debt servicing as recognized from publicly available information
i.e. CIBIL filings.
EOPL was incorporated in January 1996 by Mr Rajeev Aggarwal and his
family member. The company is engaged in the manufacturing of
quilted fabrics. The company has two manufacturing facilities,
located at New Delhi and Bengaluru, Karnataka.
FRIENDS ELECTRICALS: CRISIL Lowers Rating on INR3.50cr Loan to B
----------------------------------------------------------------
CRISIL Ratings has revised the ratings on bank facilities of
Friends Electricals - Lucknow (FE) to 'CRISIL B/Stable/CRISIL A4
Issuer Not Cooperating' from 'CRISIL BB-/Stable/CRISIL A4+ Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1.35 CRISIL A4 (ISSUER NOT
COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
Cash Credit 3.50 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Proposed Fund- 2.36 CRISIL B/Stable (ISSUER NOT
Based Bank Limits COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Term Loan 2.79 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with FE for
obtaining information through letters and emails dated October 21,
2022 and December 15, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of FE, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on FE is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of FE
revised to 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating' from
'CRISIL BB-/Stable/CRISIL A4+ Issuer Not Cooperating'.
Set up in 1984, FE trades in electrical products and mainly deals
with government organisations through tenders. It has a
distribution network across Uttar Pradesh. FE is owned and managed
by Mr H K Thakur, Mr Rishabh Thakur and Ms Vipla Thakur.
IFP PETRO: CARE Keeps B+ Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of IFP Petro
Products Private Limited (IPPPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 18.00 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 IPPPL under the 'issuer
non-cooperating' category as IPPPL 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. IPPPL 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).
IFP Petro Products Private Limited (IFP) was established in April,
2002 and is currently being managed by Mrs. Urmila Bhargava and Mr.
Anant Bhargava. The company is operating into three business
segments i.e. Used Oil refining, Transmix refining and Contract
packaging. The major application industry for company's products
are oil companies, engineering industries, grease manufacturers,
paint industries etc.
JAYA SURYA: ICRA Withdraws B Rating on INR7.50cr Term Loan
----------------------------------------------------------
ICRA has withdrawn the ratings assigned to the bank facilities of
Sree Jaya Surya Hospital Private Limited at the request of the
company and based on the No Objection Certificate received from its
banker. The Key Rating Drivers, Liquidity Position, Rating
Sensitivities, Key financial indicators have not been captured as
the rated instruments are being withdrawn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term– 7.50 [ICRA]B(Stable); ISSUER NOT
Fund Based COOPERATING; Withdrawn
Term Loan
Incorporated in 2015, Sree Jayasurya Hospital Private Limited (SJH)
has been set up to run a multispecialty hospital in the Villivakkam
district of Chennai. The hospital is proposed to have 50 beds,
focusing majorly on Orthopaedics, physiotherapy, obstetrics and
gynaecology and general and physiological treatments. The company
is promoted by Dr. M. S. Palanichamy and his wife Dr. D.
Jayalakshmi, who has more than two decades of experience in the
healthcare industry.
JET AIRWAYS: Tribunal Allows Ownership Transfer to Consortium
-------------------------------------------------------------
Reuters reports that India's national company law tribunal has
allowed the ownership of carrier Jet Airways to be transferred to a
consortium, led by UAE-based businessman Murari Lal Jalan and
London-based Kalrock Capital, two sources told Reuters.
Once India's biggest private airline, Jet ran out of cash in April
2019. It was supposed to resume operations by the first quarter of
2022 under its new owners.
However, it is deadlocked with creditors over the resolution plan
to lift the airline out of bankruptcy, Reuters relates. Jet owes
its lenders about INR180 billion (US$2.21 billion).
"The next step will involve the Jalan committee bringing in
capital, implementing the plan and restarting operations," a direct
source aware of the judgement said, notes the report.
The lenders will take a call on any subsequent steps after
deliberation among the lender consortium, post the entire order is
uploaded, a banker said, Reuters relays.
Reuters relates that the tribunal, which had already approved the
consortium's resolution plan for Jet, also set the effective date
of ownership as Nov. 16, 2022, one of the sources said.
The Jalan-Kalrock consortium would have to settle its dues with all
lenders within 180 days, or six months, from Nov. 16, the source
added, reports Reuters.
About Jet Airways
Based in Mumbai, India, Jet Airways (India) Limited was one of
India's top airlines founded by Naresh Goyal. It provided
passenger and cargo air transportation services as well aircraft
leasing services. It operated flights to 66 destinations in India
and international countries.
Jet Airways on April 17, 2019, halted all flight operations after
its lenders rejected its plea for emergency funds.
On June 20, 2019, the National Company Law Tribunal (NCLT), Mumbai
Bench, accepted an insolvency petition against Jet Airways filed by
its creditors as they attempt to recover some of their dues.
Ashish Chhawchharia of Grant Thornton India has been named as the
resolution professional in the case. Law firm Cyril Amarchand
Mangaldas will represent the interests of the lenders' consortium,
according to a Reuters report.
Creditors have filed claims worth INR30,907 crore, according to
Financial Express. The RP has so far admitted claims worth over
INR14,000 crore.
In July last year, the Jalan-Kalrock consortium was declared as the
winning bidder for Jet Airways. In June last year, the NCLT
approved the consortium's resolution plan for the troubled
carrier.
Jet Airways got its air operator certificate revalidated in May
this year. The Mumbai-based company had plans to resume operations
in October but has not provided any official comments on the same,
according to Financial Express.
KESHAVA MEDI: CRISIL Keeps B+ Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Keshava Medi
Devices Private Limited (KMDPL) continue to be 'CRISIL
B+/Stable/CRISIL A4 Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.25 CRISIL A4 (Issuer Not
Cooperating)
Cash Credit 10 CRISIL B+/Stable (Issuer Not
Cooperating)
Letter of Credit 0.75 CRISIL A4 (Issuer Not
Cooperating)
Long Term Loan 1.36 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with KMDPL for
obtaining information through letters and emails dated October 21,
2022 and December 15, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of KMDPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on KMDPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
KMDPL continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'.
The company primarily manufactures disposable syringes. Its
promoters, Ms. Tanikonda Latha and Mr. Tanikonda Kesavulu Naidu,
have experience of over two decades in similar lines of business.
KUBER INFRA: CRISIL Keeps B Debt Rating in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Kuber Infra
Solutions (KIS) continues to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 5 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with KIS for
obtaining information through letters and emails dated October 21,
2022 and December 15, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of KIS, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on KIS
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
KIS continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Mumbai based KIS was establish in 2016 by Mr. Shankar Rajput. KIS
manufactures thread rebar coupler, rebar threading machines,
threaded bars having applications in many industries.
LAXMI INDUSTRIAL: CRISIL Keeps B Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Laxmi
Industrial Bottling Plant (LIBP) continue to be 'CRISIL
B/Stable/CRISIL A4 Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.2 CRISIL A4 (Issuer Not
Cooperating)
Cash Credit 5.2 CRISIL B/Stable (Issuer Not
Cooperating)
Term Loan 1.2 CRISIL B/Stable (Issuer Not
Cooperating)
Term Loan 3.26 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with LIBP for
obtaining information through letters and emails dated October 21,
2022 and December 15, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of LIBP, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on LIBP
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
LIBP continue to be 'CRISIL B/Stable/CRISIL A4 Issuer Not
Cooperating'.
Set up in 2011, LIBP manufactures and sells country liquor. The
bottling unit is located at Sonari, West Bengal, with a capacity of
160,000 bottles per day. Mr Sanjay Kumar Das and Mr Baidyanath
Biswas are the partners.
MAHADEV BUILDING: CARE Keeps B- Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Mahadev
Building Systems Private Limited (MBSPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.72 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 22,
2021, placed the rating(s) of MBSPL under the 'issuer
non-cooperating' category as MBSPL 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. MBSPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated September 7, 2022, September
17, 2022, September 27, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Incorporated in May 2011, MBSPL was promoted by Mr. G. Mahadeva
Naidu along with his sons Mr. G.M. Lokesh and Mr. G. MahadevaTeja.
The company is engaged in manufacturing of wide range of roofing
sheets and products which include GI Sheets, Purlins and Steel
Structures. These products are widely utilized by clients across
various construction industries for building various factories,
sheds, commercial and residential sites. MBSPL commenced its
business operations from December 27, 2012 with FY14 being first
full year of business operations. The company has diversified its
business from manufacturing activity to civil constructions (like
construction of bridges, canals and warehouses) from FY14 onwards.
The company procures its raw material such as steel coils, HR
coils, zinc, aluminium, paints and chemicals from Telangana and
Maharashtra. MBSPL is also a registered Class-I civil contractor.
NETMATRIX CROP: ICRA Withdraws B+ Rating on INR16.95cr LT Loan
--------------------------------------------------------------
ICRA has withdrawn the ratings assigned to the bank facilities of
Netmatrix Crop Care Limited at the request of the company and based
on the No Due Certificate/Closure Certificate received from the
banker. The Key Rating Drivers, Liquidity Position, Rating
Sensitivities, Key Financial indicators have not been captured as
the rated instruments are being withdrawn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 11.25 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Withdrawn
Cash Credit
Long Term- 16.95 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Withdrawn
Term Loan
Long Term- 38.50 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Withdrawn
Short Term- 3.50 [ICRA]A4 ISSUER NOT
Non Fund Based- COOPERATING; Withdrawn
Others
Incorporated in 2000, Netmatrix Crop Care Limited (NMCCL, formerly
Netmatrix Limited) is a manufacturer of crop-care products,
primarily Chlorpyrifos Technical which is the single largest used
organophosphate insecticide. The company operates through its
manufacturing facilities at Vapi, Gujarat and Visakhapatnam, Andhra
Pradesh. The company is managed by Mr. B. Chandrasekar, who has
more than 25 years of experience in the agro-chemical industry.
PADMA POLYMERS: CARE Keeps B- Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Padma
Polymers (PP) continue 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
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 17,
2021, placed the rating(s) of PP under the 'issuer non-cooperating'
category as PP 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. PP 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).
Padma Polymers was established in 2000 by Mr. Viresh Timbadia and
Mr. Paresh Timbadia. The firm is engaged in trading of plastic raw
materials like plastic granules, high density polyethylene (HDPE),
low density polyethylene (LDPE), Poly propylene etc. the firm also
traders in oils, paraffin wax and chemicals like acrylamide, DCDA
and phosphoric, glycerin, phosphoric acid, citric acid, residue
wax, sack wax etc. which find its application to various industries
like cosmetics, textile, lubricants, plastic products etc. It
operates through its registered office located at Mumbai,
Maharashtra.
PERFECT INFRACORP: Ind-Ra Keeps BB Issuer Rating in NonCooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Perfect
Infracorp Private Limited's (PIPL) Long-Term Issuer Rating at 'IND
BB (ISSUER NOT COOPERATING)' and has simultaneously withdrawn it.
The instrument-wise rating actions are:
-- INR160 mil. Fund-based working capital limits* maintained in
non-cooperating category and withdrawn; and
-- INR642 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
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
PIPL was established in 1992 as a partnership firm, Perfect
Construction Company. The constitution of the entity was changed to
a private limited company in December 2012. The company is mainly
engaged in road construction, and strengthening and widening of
existing roads for various governments and semi-government
departments of Gujarat and Madhya Pradesh. The company also works
with government authorities. PIPL is a registered class 'AA' and
'Special Category I' contractor with the Gujarat government.
The company participates in tenders floated by Jilla Panchayat
Roads and Building Division Mehsana; Executive Engineer National
Highway Division Ahmedabad; and Executive Engineer Roads and
Building Division Mehsana; among others.
RAC PAPERS: CARE Keeps C Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of RAC Papers
Limited (RPL) continue to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 13.30 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 0.33 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 RPL under the 'issuer
non-cooperating' category as RPL 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. RPL
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).
Delhi based, RAC Paper Limited [RPL] (Formerly known as Nav Bharat
Duplex Limited) was established in 1985, promoted by Mr. Dayanand
Gupta and Mr. Raj Bala Gupta. The company is engaged into
manufacturing of Kraft paper, newsprint paper, duplex board etc.
The company has its manufacturing unit at Hapur, Ghaziabad.
RADHAKRISHNA OIL: CRISIL Keeps B+ Debt Rating in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Radhakrishna
Oil Industries (ROI) continues to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7.2 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with ROI for
obtaining information through letters and emails dated October 21,
2022 and December 15, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of ROI, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on ROI
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
ROI continue to be 'CRISIL B+/Stable Issuer Not Cooperating'.
ROI was established as a partnership firm in 1999. The operation of
the firm is managed by Jaiswal family. The partners are having more
than two decades experience in cotton ginning and also having
farming business in city of Bhikangaon, Madhya Pradesh. ROI carries
out cotton ginning and oil extraction work in Bhikangaon only. It
gins and presses cotton, and extracts oil from seeds. It has
installed capacity of 300 bales per day.
RAINBOW FOUNDATIONS: Ind-Ra Assigns BB Long Term Issuer Rating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Rainbow
Foundations Limited (RFL) a Long-Term Issuer Rating of 'IND BB'.
The Outlook is Stable.
The instrument-wise rating action is:
-- INR1.750 bil. Proposed non-convertible debentures (NCDs)
assigned with IND BB/Stable rating.
Key Rating Drivers
The ratings reflect moderate execution risk pertaining to RFL's six
ongoing projects; although, the projects' progress is in line with
the execution schedule. The six projects entail an overall cost of
around INR8,946.8 million, of which INR2,501 million was incurred
as of September 30, 2022. Of the remaining construction costs of
INR6,445.8 million, around 57% will be funded from customer
advances, 41% by term loan and around 2% through partners'
capital.
The ratings are also constrained by the high offtake risk
associated with its ongoing projects. Till 30 September 2022, only
11% of the total saleable area of 387,145 square feet (sf) was
booked under Rainbow Crystal Heights, 4% of 459,850sf under Rainbow
Chetna and 1% of 70,200sf under Rainbow Ekanta, 27% of 346,000sf
under Rainbow Girnar, 45% of 66,595sf under Rainbow Trade Centre,
while the total saleable area for Rainbow Aadarsh is yet to be
finalized. Management expects the booking to improve with projects
approaching completion. The company also has few projects in the
pipeline namely, (i) Rainbow Sarala Avenue (a residential project)
spread across 87 acres in Arakkonam, (ii) Rainbow Aaransh in Vepery
(a residential project) and (iii) Rainbow Depot in Madhavaram
(warehousing plots). As per management, the project details are yet
to be finalized.
The ratings are further constrained by the intense competition in
the real estate industry amid the aggressively improving demand
scenario as well as geographical concentration risks as all of
RFL's projects are primarily located in Tamil Nadu. Therefore,
timely regulatory approvals remain critical for the timely launch
of projects.
Liquidity Indicator - Stretched: There could be cash flow
mismatches, if the advances from customers are lower than Ind-Ra's
expectations. As per management, RFL's debt service coverage ratio
(DSCR) stood at 1.35x (cash DSCR: 1.35x) at 1HFYE23. The company
had a cash balance of INR28.87 million at FYE22 (FYE21: INR7.57
million). Moreover, the company does not have access to the capital
market as relies on customer advances to meet its financial needs.
As per management, it has scheduled debt repayments of INR210.3
million in FY23. RFL's average maximum utilization of the
fund-based limits was 77% in the 12 months ended December 2022.
However, the ratings are supported by the promoters more than two
and a half decades of experience in the commercial and residential
real estate segments as well as RFL's modest operational track
record as reflected by construction of 18,15,109sf (1,308 units
including flats in Chennai (Tamil Nadu)).
Rating Sensitivities
Negative: Deterioration in the liquidity position, a slowdown in
sales or collections, and any delay in timely receipts of advances
from the customers could lead to a negative rating action.
Positive: An improvement in the liquidity position, along with a
substantial improvement in the collections and sales, could lead to
a positive rating action.
Company Profile
Incorporated in June 1994, RFL is engaged in the construction of
commercial and residential projects across Tamil Nadu under the
Rainbow brand. So far, the company has completed 36 projects and
has six ongoing projects. Its shares are listed on BSE Ltd.
RANGANATHASWAMY JEWELLARY: CARE Keeps D Rating in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sri
Ranganathaswamy Jewellary Works (SRJW) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 29,
2021, placed the rating(s) of SRJW under the 'issuer
non-cooperating' category as SRJW 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. SRJW
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).
Sri Ranganathaswamy Jewellary Works (SRJW) is a proprietary concern
started by Mr K. Rangachari in September 1989. The firm is engaged
in the business of wholesale trading and retailing of gold and
silver ornaments. It is also engaged in designing and making gold
and silver ornaments as per the request of customers. Their
showroom is situated at Challakere, Karnataka. Mr Ranagachari has
an experience of around 25 years in the industry.
SANDOR LIFESCIENCES: ICRA Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------------
ICRA has retained the rating for the Debenture Programme of Sandor
Lifesciences Private Limited in the 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA]D: ISSUER
NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 35.00 [ICRA]D; ISSUER NOT
Bonds/NCD/LTD COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Promoted by Mr. Rajeev Sindhi, Sandor Lifesciences Private Limited
(SLPL), provides services in medical genetics, cellular biology,
protemics, genomics etc. The company is also a provider of trained
scientists and research assistants to the Centre for DNA
Fingerprinting and Diagnostics, operated by the Department of
Biotechnology, Ministry of Science and Technology and University of
Delhi. The company also provides bio-repository services following
standard protocols for inventory and tracking solutions. Also, the
R&D department of SLPL is recognized by the Department of
Scientific and Industrial Research.
SARAVANA INDUSTRIES: Ind-Ra Affirms B+ Long Term Issuer Rating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Shri Saravana
Industries Private Limited's (SSIPL) Long-Term Issuer Rating at
'IND B+'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR45 mil. Fund-based facilities affirmed with IND B+/Stable/
IND A4 rating; and
-- INR205 mil. Non-fund based facilities affirmed with IND A4
rating.
Key Rating Drivers
The ratings continue to reflect SSIPL's small scale of operations,
despite an increase in the revenue to INR309 million in FY22 (FY21:
INR253 million). The growth in revenue was driven by execution of a
higher number of orders. Till 7MFY23, SSIPL achieved revenue of
INR121 million. As of June 2022, the company had an order book of
INR759 million, to be executed in the next one-to-two years. In
FY23, Ind-Ra expects the revenue to remain at a similar level.
The ratings also reflect the company's continued modest EBITDA
margin of 3.0% in FY22 (FY21: 6.0%) with a return on capital
employed of 1.0%. The decline in EBITDA margin was attributed to
an increase in cost of raw materials. SSIPL expects the margin to
range between 4% and 6% in the long term owing to the similar
nature of operations as it is dependent upon the types of orders
executed as complex orders award high margins.
Liquidity Indicator - Stretched: SSIPL's average use of the
fund-based limits was 99% during the 12 months ended November 2022.
The cash flow from operations turned positive to INR25 million in
FY22 (FY21: negative INR5 million) due to favorable changes in
working capital. The company has a cash balance of INR3.7 million
at FYE22 (FYE21: INR6.59 million). The cash conversion cycle
reduced to 243 days in FY22 (FY21: 344 days) due to a reduction in
the inventory holding period to 48 days (166 days). SSIPL does not
have any capital market exposure and relies on banks to meet its
funding requirements. The company has scheduled repayments of
INR9.73 million and INR7.33 million in FY23 and FY24,
respectively.
The ratings continue to factor in the company's modest credit
metrics as indicated by the net financial leverage (adjusted net
debt/operating EBITDA) of 5.56x in FY22 (FY21: 3.78x) and the gross
interest coverage (operating EBITDA/gross interest expense) of
1.01x (FY21 : 2.77x). The deterioration in credit metrics was on
account of a decline in the EBITDA, partially offset by a decline
in debt. However, Ind-Ra expects the credit metrics to improve in
the medium term on account of the absence of any major debt-led
capex.
The ratings also remain constrained by customer concentration risks
as the company receives significant quantum orders from government
and public entities or as a subcontracting working for a primary
contractor.
However, the ratings continue to be supported by SSIPL's more than
two decades of presence in the hydro-mechanical industry.
Furthermore, the company's promoters S. Kandasamy, K. Vadivambal
and S. Ganesan have more than three decades of experience in the
hydro-mechanical industry, leading to established relationships
with its customers and suppliers.
Rating Sensitivities
Negative: A decline in the revenue and EBITDA margin, leading to
deterioration in the credit metrics and/or a further stretch in the
liquidity position, all on a sustained basis, could be negative for
the ratings.
Positive: An increase in the revenue and EBITDA margin, leading to
an improvement in the credit metrics and liquidity position, all on
a sustained basis, could be positive for the ratings.
Company Profile
Founded as a proprietorship firm in 1986 by S Kandasamy,
Madurai-based SSIPL undertakes hydromechanical operations, which
involve the design, procurement, fabrication, manufacture,
installation, testing and commissioning of complete
hydro-mechanical equipment, including penstocks, steel liners,
expansion joints, pressure shafts and gates. SSIPL imports hydro
component from China and designs of valves from Italy.
SHANNON AND SHANNON: CARE Keeps B- Debt Ratings in Not Cooperating
------------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Shannon
And Shannon (SS) continue to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Long Term/Short 1.00 CARE B-; Stable/CARE A4;
Term Bank ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 2.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated December 9,
2021, placed the rating(s) of SS under the 'issuer non-cooperating'
category as SS 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. SS continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
October 25, 2022, November 14, 2022 and January 4, 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).
Gurugram based Shannon and Shannon (SS) was established in 1953 as
a proprietorship firm and is currently being managed by Mr. Amit
Shannon and Mr. Shivam Shannon. The firm is a sanitary contractor
and is engaged in providing plumbing and firefighting works to
various private sector developers (Real-estate). The firm is
associated with many reputed clients namely, DLF, Adani Group
(Builders and Developers), India bulls real estate, etc. The main
raw materials are PVC Pipes, GI Pipes, MS Pipes, UPVC Pipes, Pumps,
etc. which the firm procures from various domestic manufacturers
and wholesalers.
SHIVALAKHA SOLAR: ICRA Lowers Rating on INR75.36cr Loan to B+
-------------------------------------------------------------
ICRA has downgraded the ratings on certain bank facilities of
Shivalakha Solar Energy Private Limited (SSEPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 75.36 [ICRA]B+ (Stable) downgraded
Fund-based- from [ICRA]BB- (Stable)
Term loan
Rationale
ICRA's rating action on SSEPL factors in the deterioration in the
generation performance of its 20-MW solar power plant in FY2022 and
8M FY2023 over the corresponding period of the previous year,
leading to weak debt coverage metrics with the debt service
coverage ratio (DSCR) remaining well below one. The generation
performance has remained subdued over the past few years owing to
various factors, including inverter breakdowns, degradation in
performance of photovoltaic (PV) modules and adverse weather
conditions. As the cash flows generated from the company's
operations were inadequate, SSEPL remained dependent on funding
support from Group companies and the available liquidity to service
its debt repayment obligations. Over the near to medium term, the
debt metrics are expected to remain weak unless the company
achieves a significant improvement in generation performance.
The rating also continues to remain constrained by the sensitivity
of the debt metrics to power generation and in turn to the weather
conditions because of the one-part tariff under the PPA. Further,
the single location and single asset operations increases this
risk. The rating also factors in the regulatory challenges
associated with the implementation of forecasting and scheduling
mechanism for solar power projects in Gujarat.
Further, ICRA notes that the sponsor funding for the project is
through a mix of equity, preference shares, optionally convertible
debentures (OCDs) and inter-corporate deposits (ICDs). However, the
servicing of the sponsor debt remains subordinated to the project
debt. ICRA also takes note of the weak financial performance of the
holding company, NSL Renewable Power Private Limited (NRPPL), and
the cash flow pressure at the Group level, mainly due to the delay
in the execution of the hydro power portfolio and the operational
issues in certain wind power projects.
The rating, however, favourably factors in the low offtake risks
owing to the presence of a long-term power purchase agreement (PPA)
(25-year) with Gujarat Urja Vikas Nigam Limited (GUVNL; rated
[ICRA]AA- (Stable)/[ICRA]A1+) at a fixed tariff of INR9.98 per unit
for the first 12 years and INR7.00 per unit for the remaining 13
years. Further, the rating derives comfort from the strong credit
profile of the counterparty, evident from the timely payment
realisation. ICRA also takes note of the presence of a debt service
reserve account (DSRA), equivalent to two quarters' interest and
principal payments, and the support extended by the Group companies
in the past to bridge the cash flow shortfall of SSEPL.
The Stable outlook on the rating assigned to SSEPL factors in the
limited offtake and tariff risks given the presence of longterm PPA
with GUVNL, low counterparty credit risk and the availability of a
two-quarter DSRA.
Key rating drivers and their description
Credit strengths
* Long-term PPA mitigates offtake and tariff risks: The company has
a 25-year PPA with GUVNL for its entire capacity at a fixed tariff
of INR9.98 per unit for the first 12 years and INR7 per unit for
the next 13 years. Hence, the offtake and tariff-related risks
remain limited.
* Strong offtaker lowers counterparty credit risk: The counterparty
credit risk for SSEPL is low because of the presence of a strong
offtaker, GUVNL, which is rated at [ICRA]AA- (Stable)/[ICRA]A1+.
Timely realisation of monthly payments from GUVNL and the presence
of cash DSRA equivalent to the ensuing two quarters' principal and
interest payment support the company's liquidity profile.
Credit challenges
* Sub-optimal generation over past five years because of
inverter-related issues and module degradation: The generation
performance of the company continues to be weak, with reported PLF
of 12.78% in FY2022 compared with 14.11% in FY2021 and 14.17% in
FY2020 and much lower than the average PLF of over 15.0% reported
till FY2019. The performance was impacted till FY2020 owing to
inverter issue and module degradation. While the inverter-related
issues were resolved in FY2021, the PLF remains subdued owing to
lower-than-expected solar radiation and module degradation.
Further, the generation in 8M FY2023 is lower on a YoY basis;
hence, improvement in the generation remains a key rating
sensitivity factor for SSEPL.
* Single-asset operations; sensitivity of debt metrics to energy
generation: SSEPL is entirely dependent on power generation by the
solar power project for its revenues and cash accruals, given the
single-part nature of the tariff. As a result, any adverse
variation in weather conditions and equipment performance may
impact its PLF and consequently its cash flows. The single location
and single asset nature of the company's operations amplifies this
risk.
* Weak financial profile of holding company; cash flow pressure at
Group level: The financial performance of NRPPL in the last few
years has been impacted by the delay in the execution of hydropower
projects and the associated funding risks, as well as by the
operational issues in certain wind power projects. The Group has
been able to divest one such hydro project, while the divesting
process is underway for the second project.
* Challenges associated with implementation of forecasting and
scheduling regulations: The company remains exposed to the
regulatory challenges pertaining to the implementation of the
scheduling and forecasting framework for solar power projects in
Gujarat.
Liquidity position: Stretched
The liquidity position of the company is stretched, given the
inadequacy of the cash flows from operations in relation to the
debt servicing obligations because of the weak generation
performance of its solar power project. As a result, the company
has remained dependent on the funding support from Group companies
to bridge the gap. The liquidity position, however, remains
supported by the presence of a two-quarter DSRA and timely
realisation of payments from the offtaker.
Rating sensitivities
Positive factors – ICRA could upgrade the rating if the company
demonstrates a sustained improvement in the generation level, which
would improve its debt protection metrics. Specific credit metrics
that could lead to an upgrade include DSCR of more than 1.0 times
on a sustained basis.
Negative factors – Pressure on SSEPL's rating would arise in case
of a further deterioration in generation, which would weaken the
overall financial risk profile. Any delays in realising the
payments from GUVNL impacting the company's cash flows and
liquidity would be another negative trigger.
SSEPL, incorporated in August 2010, operates a 20-MW solar power
plant at Shivalakha village in the Kutch district of Gujarat. The
project was commissioned in phases, with the first 10.08 MW
commissioned in April 2012 and the remaining capacity commissioned
in June 2012. SSEPL was a joint venture between NRPPL and Solar
Semiconductor Private Ltd (SSPL). NRPPL gradually increased its
stake and became the 100% shareholder in June 2017. The project was
developed using poly-crystalline modules based on a thin-film
technology from Sunwell Solar Corporation (Taiwan). The operations
and maintenance of the project is being carried out by Mahindra
Susten Private Limited since May 2019.
SHORAPUR SOLAR: ICRA Lowers Rating on INR36.25cr Term Loan to B
---------------------------------------------------------------
ICRA has downgraded the ratings on certain bank facilities of
Shorapur Solar Power Limited (SSPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 36.25 [ICRA]B (Stable); downgraded
Fund-based- from [ICRA]B+(Stable); removed
Term loan from Issuer Not Cooperating
Category
Long term-
Unallocated 8.75 [ICRA]B (Stable); downgraded
from [ICRA]B+(Stable); removed
from Issuer Not Cooperating
Category
Rationale
The rating revision factors in the deterioration in SSPL generation
performance in FY2022 and the current fiscal, which remained lower
than the P90 estimates owing to the O&M issues faced by the company
and a fire incident that occurred in H1 FY2023. The total
generation levels declined to 15.7 MUs in FY2022 and 8.1 MUs in 8M
FY2023 from 18.7 MUs in FY2021. Further, the net profits remained
negative in the last four years due to higher fixed costs. The
subdued generation performance resulted in inadequate cash flows
and a stretched liquidity position, reflected in the utilisation of
its debt service reserve account (DSRA) to meet the debt obligation
in the recent past. Going forward, a sustained improvement in the
generation levels and replenishment of the DSRA balance to the
mandated level would remain critical from a credit perspective.
ICRA also notes the qualified opinion by the auditor, as per the
Audit Report 2022, highlighting the investment of funds in the form
of equity from Karvy Consultants Limited (KCL) into SSPL which are
a part of the net proceeds of the ongoing legal proceedings against
promoter Group entities. ICRA will continue to monitor the
developments in this regard and their possible impact on the credit
risk profile of the company, if any, and take an appropriate rating
action as and when required. Further, the rating is also offset by
the moderate counterparty credit risk as Chamundeshwari Electricity
Supply Corporation Limited (CESCL) is the sole offtaker. SSPL
remains exposed to interest rate risk, given the single and
fixed-part nature of the tariff, and revenue concentration due to
the single-asset and location of operations. Further, the debt
metrics and cash flows of the solar power projects remain sensitive
to the capacity utilisation factor (CUF), which is impacted by the
variation in weather conditions.
However, ICRA takes into consideration the operational status of
SSPL's 10-MW solar photovoltaic (PV) based power plant since
February 2018, along with its long-term revenue and cash flow
visibility arising from a firm power purchase agreement (PPA) with
CESCL, at a fixed tariff, valid for 25 years and timely payments
from the offtaker within 30-40 days from the billing date.
The Stable outlook reflects ICRA's expectation that the power
generation levels are expected to improve and the payments from
CESCL will be received in a timely manner.
Key rating drivers and their description
Credit strengths
* Track record of operations: The 10-MW solar power plant has been
operational since February 23, 2018, thereby eliminating the
execution risk associated with under-construction projects.
However, the track record of power generation has remained below
P90 estimates since commissioning.
* Limited demand risk with long-term PPA with state discom: The
company has signed a PPA with CESCL for a period of 25 years from
the effective date i.e. September 26, 2016, which limits the demand
and pricing risk. As per the PPA, the applicable tariff for the
project would be lower of the tariff of INR5.13 per unit or the
tariff approved by the Karnataka Electricity Regulatory Commission
(KERC) as on the COD date (Rs. 4.36 per unit is the KERC approved
tariff on COD). As per the order dated June 07, 2018, the company
has received an interim tariff of INR4.36 per unit pending the
disposal of the petition filed by SSPL with APTEL. However, the
company has realised the payments from the offtaker in 30-40 days
in the past 15 months.
Credit challenges
* Single-asset nature of operations; cash flows exposed to weather
conditions with tariffs linked to actual generation: SSPL is
entirely dependent on power generation by the solar power project
for its revenues and cash accruals, given the single-part nature of
the tariff. As a result, any adverse weather conditions may impact
its PLF and consequently the cash flows. The single location and
single asset nature of the company's operations increases this
risk.
* Low generation performance with reported PLF below P90 estimate:
The plant generation performance remained low with PLF of 19.9% in
FY2021 and 17.92 % in FY2022, which is lower than the P90 estimates
of 21%. Further, the generation level declined in 8M FY2023 with
the PLF falling to ~14% due to a fire incident and the plant
operating at subdued capacity levels. The company's liquidity
profile has weakened, reflected in the utilisation of the debt
service reserve account (DSRA) to meet the debt obligations in the
current fiscal, subsequent to the deterioration in the PLF level.
The DSCR is expected to remain less than 1.0 times in FY2023 and
around 1.07 times in FY2024.
* Exposure of project to counterparty credit risk: The company's
operations remain exposed to the counterparty credit risk as CESCL
is the sole offtaker. Nonetheless, SSPL has been receiving payments
timely within 30-40 days from the date of billing.
* Weakening of financial flexibility of the promoter group: The
financial flexibility of the Karvy Group's promoters and entities
has weakened further amid the ongoing legal proceedings against
promoter and group companies. ICRA would continue to monitor the
developments in this regard and their impact on SSPL's credit
profile.
Liquidity position: Stretched
The company's liquidity profile remains stretched due to inadequate
cash flow generation following the deterioration in the generation
performance in the recent past, as reflected in the utilisation of
the DSRA balance to meet the debt repayment obligations. The DSRA
balance stood at INR1.91 crore as on November 30, 2022, which is
expected to support the operating cost and debt servicing over the
next 3-4 months.
Rating sensitivities
Positive Factors - The rating can be upgraded if the company
demonstrates an improvement in DSCR to above 1.10 times on a
sustained basis and improvement in liquidity and financial
flexibility at the promoter group level.
Negative Factors - Pressure on the rating would arise if the
payments from the offtaker are delayed adversely affecting the
liquidity position, or if an underperformance in generation weakens
the debt coverage metrics on a sustained basis. Any adverse impact
on SSPL's credit profile amid the ongoing legal proceedings against
its promoter group entities adversely impacting the company's
operational and credit profile could also lead to a downgrade.
SSPL was incorporated in May 2016 with the main objective of
setting up a 10-MW solar power plant at Yalgi village, Shorapur
taluk, Yadgir district, Karnataka. The COD was achieved on February
23, 2018. The company is promoted by the Karvy Group with Karvy
Consultants Ltd (KCL) holding 99.91% of the shareholding, while the
rest is held by KCL's promoters in their individual capacity.
SITSON INDIA: CRISIL Keeps B Debt Rating in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Sitson India
Private Limited (SIPL) continue to be 'CRISIL B/Stable/CRISIL A4
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 18 CRISIL A4 (Issuer Not
Cooperating)
Cash Credit 7.25 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SIPL for
obtaining information through letters and emails dated October 21,
2022 and December 15, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SIPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SIPL continue to be 'CRISIL B/Stable/CRISIL A4 Issuer Not
Cooperating'.
Set up as a partnership in 1978 by Mr Dilip Bhamare and Mr Ramarao
Nandris, the firm was converted into a private-limited company in
1999. SIPL manufactures boilers and auxiliary products, such as
soot blowers. It also undertakes turnkey projects for power
generation/co-generation and setting up sugar mill plants; its
sugar-crushing capacity is 2,500-3,000 tonne per day. The
manufacturing unit is in Dombivali, Maharashtra.
SK. SAMIR: CRISIL Keeps B+ Debt Rating in Not Cooperating
---------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of SK. Samir Ali
(SKSA) continue to be 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit/ 7 CRISIL B+/Stable (Issuer Not
Overdraft Cooperating)
facility
Proposed Short Term 3 CRISIL A4 (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with SKSA for
obtaining information through letters and emails dated October 21,
2022 and December 15, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SKSA, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SKSA
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SKSA continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'.
Established as a proprietorship firm by Mr SK Samir Ali in 1988,
SKSA undertakes projects for construction of buildings, bridges and
other civil works.
SMPL LIFE: CRISIL Keeps B Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of SMPL Life
Sciences Private Limited (SMPL) continue to be 'CRISIL
B/Stable/CRISIL A4 Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 2 CRISIL A4 (Issuer Not
Cooperating)
Cash Credit 7.5 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SMPL for
obtaining information through letters and emails dated October 21,
2022 and December 15, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SMPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SMPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SMPL continue to be 'CRISIL B/Stable/CRISIL A4 Issuer Not
Cooperating'.
Incorporated in 2011, Delhi-based SMPL trades pharmaceutical
formulations in the form of tablets and medicines. The company is
promoted by Mrs. Meenu Sabharwal and family. The entire sales are
done to ministry of defence in India.
SOLCEN INFRA: CRISIL Keeps B Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Solcen Infra
Private Limited (SIPL) continue to be 'CRISIL B/Stable/CRISIL A4
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1.35 CRISIL A4 (Issuer Not
Cooperating)
Cash Credit 4.9 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Bank 1.65 CRISIL A4 (Issuer Not
Guarantee Cooperating)
Proposed Cash 2 CRISIL B/Stable (Issuer Not
Credit Limit Cooperating)
Proposed Fund- 8.6 CRISIL B/Stable (Issuer Not
Based Bank Limits Cooperating)
Proposed Line 1.5 CRISIL B/Stable (Issuer Not
of Credit Cooperating)
CRISIL Ratings has been consistently following up with SIPL for
obtaining information through letters and emails dated October 21,
2022 and December 15, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SIPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SIPL continue to be 'CRISIL B/Stable/CRISIL A4 Issuer Not
Cooperating'.
SIPL was incorporated in April 1991 as a private limited company by
the name of Nidhi Pipes Private Limited and got renamed to its
current name in 2016 and is currently managed by Mr Vijay Mittal
(Chairman) and Mr Rohit Mittal (Managing Director). The company is
engaged in manufacturing of solar mounting structures and
galvanized pipes/ tubes & fittings at its manufacturing facility
located in Derabassi, Punjab with an installed capacity of 7000
ton/PA.
SVL LIMITED: ICRA Withdraws D Rating on INR650cr NCD
----------------------------------------------------
ICRA has withdrawn the ratings assigned to the NCD Programme of SVL
Limited at the request of the company and based on the No Due
certificate (NDC) received from its banker. The Key Rating Drivers,
Liquidity Position, Rating Sensitivities, Key financial indicators
have not been captured as the rated instruments are being
withdrawn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non-Convertible 650.00 [ICRA]D; ISSUER NOT COOPERATING;
Debenture Withdrawn
Programme
SVL Limited, erstwhile Shriram Industrial Holdings Limited, is the
ultimate holding company of the SVL Group, which has investments in
diverse entities in manufacturing and infrastructure sectors. The
SVL Group was formed after the restructuring process of the Shriram
Group, wherein the financial services (FS) entities were housed
under Shriram Capital Limited and the non-financial entities (NFS)
under SVL. The SVL Trust holds 100% stake in SVL Limited and there
are no common trustees and beneficiaries between SVL Trust and
Shriram Ownership Trust (SOT), which is the major shareholder in
financial services entities.
TRANSPORT CORPORATION: CRISIL Keeps B Rating in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Tamilnadu
State Transport Corporation (Madurai) Limited (TNSTC) continues to
be 'CRISIL B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 13 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with TNSTC for
obtaining information through letters and emails dated October 21,
2022 and December 15, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of TNSTC, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on TNSTC
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
TNSTC continue to be 'CRISIL B/Stable Issuer Not Cooperating'.
TNSTC (MDU) is a Government of Tamil Nadu enterprise that provides
intercity bus transport facilities. The company operates in Madurai
district of Tamil Nadu.
VASAVI EXPORTS: CRISIL Keeps B Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Shree Vasavi
Exports (SVE) continue to be 'CRISIL B/Stable/CRISIL A4 Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3 CRISIL B/Stable (Issuer Not
Cooperating)
Export Packing 3 CRISIL A4 (Issuer Not
Credit Cooperating)
Foreign Bill 1 CRISIL B/Stable (Issuer Not
Purchase Cooperating)
Key Cash Credit 3 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SVE for
obtaining information through letters and emails dated October 21,
2022 and December 15, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SVE, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SVE
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SVE continue to be 'CRISIL B/Stable/CRISIL A4 Issuer Not
Cooperating'.
Set up in 1997 as a proprietorship firm, SVE is engaged in trading
of raw cashew nuts and Palmyra fiber. The firm is based out of
Kakinada in Andhra Pradesh and promoted by Mr.T Vijay Kumar.
ZEBION INFOTECH: Ind-Ra Affirms BB- Long Term Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Zebion Infotech
Private Limited's (ZIPL) Long-Term Issuer Rating at 'IND BB-'. The
Outlook is Stable.
The instrument-wise rating actions are:
-- INR201 mil. Fund-based facilities affirmed with IND BB-/Stable
/IND A4+ rating;
-- INR10 mil. Non-fund-based facilities affirmed with IND A4+
rating; and
-- INR19 mil. (increased from INR18.6 mil.) Term loan due on
February 2026 affirmed with IND BB-/Stable rating.
Key Rating Drivers
The affirmation reflects ZIPL's continued weak credit metrics, with
gross interest coverage (operating EBITDA/gross interest expense)
of 1.25x in FY22 (FY21: 1.29x) and net leverage (adjusted net
debt/operating EBITDAR) of 7.6x (6.4x). The credit metrics
deteriorated on account of an increase in total debt, resulting
from higher utilization of the fund-based limits. Ind-Ra expects
the credit metrics to improve in FY23, supported by a likely
increase in absolute EBITDA and scheduled loan repayments.
The ratings reflect ZIPL's continued small scale of operations, as
indicated by revenue of INR1038.4 million in FY22 (FY21: INR805.8
million). The revenue increased by 28% yoy in FY22 due to higher
demand for information technology products and electronic goods,
led by the increased prevalence of remote working in the wake of
the pandemic. In 8MFY22, ZIPL achieved revenue of INR700 million.
Ind-Ra expects the revenue to grow marginally on a yoy basis in
FY23 owing to higher demand for electronic products.
The ratings also factor in ZIPL's modest EBITDA margins due to the
trading nature of the business. The margin declined to 4.28% in
FY22 (FY20: 5.38%) because of increase in the cost of goods
purchased from China and Taiwan. The ROCE was 11.8% in FY22
(FY21:13.9%). During 8MFY22, ZIPL achieved EBITDA margins of 5.6%.
Ind-Ra expects the margin to rise slightly in FY23, due to
increased absorption of fixed costs owing to higher revenue.
Liquidity Indicator - Stretched: The company's average maximum
utilization of the fund-based facilities was around 87.63% over the
12 months ended November 2022, while the non-fund-based limits were
fully utilized over the same period. The cash flow from operations
remained negative at INR57.27 million in FY22 (FY21: negative
INR53.79 million) due to unfavorable changes in the working
capital. The net working capital cycle remained elongated but
improved to 144 days in FY22 (FY21: 179 days) due to a decrease in
the inventory holding period to 99 days (121 days). The
unencumbered cash and cash equivalents stood at only INR0.27
million at FYE22 (FYE21: INR0.72 million). Furthermore, the company
does not have any capital market exposure and relies on banks and
financial institutions to meet its funding requirements. ZIPL had
availed a guaranteed emergency credit line of INR26.98 million in
FY21, and another extension of INR16.5 million in FY22 to meet its
working capital requirements. Ind-Ra expects the liquidity to
marginally decline in FY23, owing to the scheduled loan repayment
of approximately INR15 million each in FY23 and FY24.
The ratings are, however, supported by the promoters' experience of
over a decade in the computer peripherals and accessories industry,
which has led to established relationships with customers and
suppliers.
Rating Sensitivities
Negative: Any decline in the scale of operations, leading to
deterioration in the credit metrics or the liquidity position, will
be negative for the ratings.
Positive: Growth in the scale of operations, leading to an
improvement in the credit metrics, with the gross interest coverage
exceeding 1.8x, and an improvement in the liquidity position, all
on a sustained basis, will be positive for the ratings.
Company Profile
Established in 2010, Pune-headquartered ZIPL is engaged in the
trading of information technology products, including closed
circuit television, computer peripherals and accessories. The
company imports products mainly from China and Taiwan on contract
manufacturing basis and sells it under the Zebion brand. Its
promoters are Abhishek Lodha, Abhinandan Dagale and Yogesh Dagale.
=================
I N D O N E S I A
=================
LIPPO KARAWACI: Moody's Puts 'B3' CFR on Review for Downgrade
-------------------------------------------------------------
Moody's Investors Service has placed Lippo Karawaci Tbk (P.T.)'s B3
corporate family rating and the B3 backed senior unsecured rating
of the notes issued by Theta Capital Pte. Ltd., a wholly-owned
subsidiary of Lippo Karawaci, on review for downgrade. The notes
are guaranteed by Lippo Karawaci and some of its subsidiaries. The
outlook on all ratings was revised to ratings under review from
stable.
On January 11, Lippo Karawaci announced a tender offer to buy back
its $405 million US dollar notes due January 2025 and its $417
million US dollar notes due October 2026, with the offer capped at
all or part of the net proceeds up to IDR6 trillion (about $387
million) term loan. Lippo Karawaci is also seeking noteholders'
consent to waive and amend some terms under the notes.
"The review will focus on the success of the tender offer, which
will require noteholders' consent on the proposed revised terms for
the company to raise fresh debt to buy back the US dollar notes. At
this point, it remains unclear as to whether the tender offer will
be successfully completed," says Rachel Chua, a Moody's Vice
President and Senior Analyst.
RATINGS RATIONALE
Including the early tender and consent fee, noteholders will
receive $875 per $1,000 principal issued for the 2025 notes and
$775 per $1,000 principal issued for the 2026 notes. The buyback
will be funded by a new secured seven-year amortizing term loan
from Bank Negara Indonesia (Persero) (P.T.) (Baa2 stable) and Bank
CIMB Niaga Tbk (P.T.) (Baa2 stable). The offer expires on February
1, 2023.
Moody's notes that the maturities of the two bonds are 24 months
and 46 months away. Further, Lippo Karawaci's ability to raise a
substantial amount of fresh loan funds signals the company has
access to debt markets at the moment.
If completed, the tender offer will partly address Lippo Karawaci's
large debt maturity wall in 2025-26, reduce total debt by around
10% and result in around $5 million-$10 million of interest savings
annually.
However, Moody's notes that the noteholders will have to absorb an
economic loss if the tender offer is completed. The company's
capital structure will also shift to incorporate more secured
borrowings.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's review will focus on the success of the consent
solicitation and the tender offer. The review will also focus on
the economic loss the noteholders will have to absorb and default
avoidance as a result of the transaction.
The transaction will create legal subordination for investors that
do not tender their notes. The remaining bonds will be legally
subordinated to the new loan, which is secured over land and some
other properties.
Consequently, the B3 ratings of the 2025 and 2026 notes will likely
face downward rating pressure upon successful completion of the
tender offer. The unsecured notes will make up around 40% of Lippo
Karawaci's new capital structure, if the full IDR6 trillion is used
to buy back the two bonds equally. The secured bank debt has
priority claim and will rank ahead of the notes, which will reduce
the recovery prospects for the noteholders if a default were to
occur.
The principal methodology used in these ratings was Homebuilding
and Property Development published in October 2022.
Lippo Karawaci Tbk (P.T.) and its subsidiaries are engaged in the
development, management and operation of retail malls, hospitals,
hotels, condominiums, and residential townships across multiple
cities in Indonesia. Lippo Karawaci also manages Lippo Malls
Indonesia Retail Trust (B3 negative), a real estate investment
trust (REIT) listed on the Singapore Stock Exchange, in which it
owned a 47% stake as of September 30, 2022.
===============
M A L A Y S I A
===============
CAPITAL A: Optimistic of Exiting PN17 Status By Year-End
--------------------------------------------------------
The Sun Daily reports that Capital A Bhd is optimistic about its
growth potential this year following a strong rebound in travel
demand post-Covid and expects to be out of the PN17 status by the
end of this year, said chief executive officer Tan Sri Tony
Fernandes.
He said the investment holding group that is involved in aviation,
logistics, lifestyle, and financial services ventures, plans to
submit its finalised regularisation plan to Bursa Malaysia as early
as February, Sun Daily relates.
"We can be out of PN17, definitely this year, I hope much earlier
(than that). All of the consultants are now going through all the
work," he told reporters on the sidelines of the AirAsia Super App
Rider and Driver appreciation event on Jan. 12. "We hope to submit
to Bursa (somewhere between) February and April. So once we get the
approval, then we will go through."
To recap, Capital A fell into the PN17 list of Bursa Securities - a
categorisation for distressed entities - in January 2022.
Sun Daily relates that the group previously announced that there
was no plan for a merger between its two airlines entities, AirAsia
Bhd and AirAsia X Bhd (AAX), but a separate publicly quoted
aviation group will be formed under the proposed PN17 exit
strategy.
Commenting on travel demand especially from China following the
reopening of its border, Mr. Fernandes said the group anticipates a
very strong recovery for the market in view of the overwhelming
demand it received from the Chinese tourists, Sun Daily relays.
"We have not started selling in full because we're applying for all
the rights . . . but we have applied for 19 destinations (compared
with about) 24 destinations we had pre-Covid.
"The demand is there. Obviously, flights are very expensive going
abroad so we think many people will come to Southeast Asia," he
said.
According to the report, Mr. Fernandes expressed hope that the
governments, which seem quite good at the moment, do not overreact
to the latest Covid variant as it is less dangerous, saying that
like everywhere else, the surge in China will likely be over soon.
Mr. Fernandes said his main focus currently is getting all the
planes to fly again and expects to be at par with pre-Covid levels
by July for all markets, not just China.
He said the airline business will be running with 204 planes by May
compared with 150 planes it currently has, and there will be no new
delivery taking place this year, while 50 new deliveries are
expected in 2024, the report relays.
"People have to understand that it's taking a little bit of time
for airlines to get back, but we're working very hard. We're
listening to the people . . . the issues with AirAsia (regarding)
on time performance . . . I think that's going to be solved. For
refunds, I think that's almost all solved now," the report quotes
Mr. Fernandes as saying.
"It all looks positive, but there's a lot of things still that we
have to work on such as the oil price that is still very high and
ringgit versus US dollar. Those are the only two kinds of clouds,
but demand is very strong and so I believe 2023 will be an
important year for us in getting back to where we were," Mr.
Fernandes said, notes the report.
He added that AAX will be operating with 14 planes by end-2023
versus eight at present.
About Capital A
Capital A Bhd, formerly known as AirAsia Group Bhd, provides
low-cost air carrier service. The company provides services on
short-haul, point-to-point domestic and international routes.
AirAsia, headquartered in Malaysia, operates from hubs in Malaysia,
Thailand, Indonesia, Philippines and India. The airline's Malaysia
and Thailand operations are undertaken via AirAsia Bhd and Thai
AirAsia Co Ltd while AirAsia Group's Indonesia and Philippines
operations are managed under PT Indonesia AirAsia and Philippines
AirAsia Inc.
As reported in the Troubled Company Reporter-Asia Pacific on Jan.
18, 2022, AirAsia Group Bhd (AAGB) is in the midst of formulating a
plan to regularize its financial condition to address its Practice
Note 17 (PN17) status. According to The Star, Bursa Malaysia on
Jan. 13 dismissed AAGB's appeal seeking to extend an 18-month
relief period from being classified as a PN17 company that ended on
Jan. 7, 2022.
AirAsia triggered the PN17 suspended criteria in July 2020 after
its external auditors, Ernst & Young PLT, issued an unqualified
audit opinion with material uncertainty relating to going concern
in respect of its audited financial statements for the financial
year ended Dec. 31, 2019 (FY19) and its shareholders' equity on a
consolidated basis was 50% or less of its share capital.
AirAsia also triggered the prescribed criteria pursuant to
Paragraph 8.04 and Paragraph 2.1(a) of PN17 of Bursa's Main Market
Listing Requirements (Main LR), where AirAsia's shareholders'
equity on a consolidated basis was 25% or less of its share capital
and the shareholders' equity is less than MYR40 million based on
the audited financial statements for FY20.
Following relief measures introduced by Bursa and the Securities
Commission Malaysia, AirAsia was not classified as a PN17 listed
issuer and was not required to comply with the obligations under
Paragraph 8.04 and PN17 of the Main LR for a period of 18 months
from the date of the first relief announcement, theedgemarkets.com
said. The date of the first relief announcement was July 8, 2020,
and the 18-month period ended on Jan. 7, 2022. Under the relief
measures, companies that triggered any of the suspended criteria
between April 17, 2020 and June 30, 2021, would not be classified
as a PN17 and Guidance Note 3 (GN3) company for 12 months.
===============
M O N G O L I A
===============
MONGOLIA: Fitch Assigns 'B' Rating on Proposed USD Sr. Unsec Bonds
------------------------------------------------------------------
Fitch Ratings has assigned Mongolia's proposed US dollar bonds a
'B' rating.
The transaction is related to a voluntary exchange and tender offer
for outstanding bonds maturing in 2023 and 2024.
KEY RATING DRIVERS
The rating is in line with Mongolia's 'B' Long-Term
Foreign-Currency Issuer Default Rating (IDR), which has a Stable
Outlook and was last affirmed on 18 May 2022.
The following ESG issues represent key rating drivers for the
proposed bond; other key rating drivers can be found in the issuer
rating action commentary dated 18 May 2022:
ESG - Governance: Mongolia has an ESG Relevance Score of '5[+]' for
Political Stability and Rights and '5' for the Rule of Law,
Institutional and Regulatory Quality and Control of Corruption.
These scores reflect the high weight World Bank Governance
Indicators (WBGIs) have in its proprietary Sovereign Rating Model.
Mongolia has a medium WBGI ranking at the 47th percentile,
reflecting a recent record of peaceful political transitions, a
moderate level of rights for participation in the political
process, moderate institutional capacity, established rule of law
and a moderate level of corruption.
The rating on the bonds is sensitive to any changes in the
Long-Term Foreign-Currency IDR, which has the following rating
sensitivities (as per the aforementioned issuer rating action
commentary).
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- External Finances: Heightened external stress, which may be
evident from restricted access to external financing sources or a
marked decline in foreign reserves, potentially as a result of
prolonged border disruptions with China.
- Public Finances: Failure to reduce the budget deficit and
stabilise the government debt/GDP ratio.
- Structural Features: Political instability sufficient to
significantly disrupt strategic mining projects or FDI inflows.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- External Finances: The accumulation of larger foreign-currency
reserve buffers and implementation of a debt-management strategy
that lowers refinancing risks and improves external debt
sustainability.
- Macroeconomic: A resumption of stronger economic growth and
export trends without the emergence of imbalances, and the
maintenance of a favourable business environment conducive to
robust FDI inflows.
- Public Finances: Narrowing of the budget deficit consistent with
a declining government debt/GDP ratio.
ESG CONSIDERATIONS
The ESG profile is in line with that of Mongolia.
Entity/Debt Rating
----------- ------
Mongolia
senior unsecured LT B New Rating
=====================
N E W Z E A L A N D
=====================
CAFE MONET: Creditors' Proofs of Debt Due on March 3
----------------------------------------------------
Creditors of Cafe Monet Limited are required to file their proofs
of debt by March 3, 2023, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Jan. 9, 2023.
The company's liquidators are:
Paul Vlasic
Rodgers Reidy (NZ) Limited
Licensed Insolvency Practitioners
PO Box 45220
Te Atatu
Peninsula, Auckland
UPTOWN HOLDINGS: Court to Hear Wind-Up Petition on March 2
----------------------------------------------------------
A petition to wind up the operations of Uptown Holdings Limited
will be heard before the High Court at Auckland on March 2, 2023,
at 10:00 a.m.
N2D3 Properties Limited filed the petition against the company on
Nov. 15, 2022.
The Petitioner's solicitor is:
Jeffrey Gray Ussher
Level 19
191 Queen Street
Auckland
VAC-U-DIGGA NZ: Cor Cordis Appointed as Liquidator
--------------------------------------------------
Michael James Billingsley and Neil Robert Cussen of Cor Cordis on
Jan. 5, 2023, were appointed as liquidators of Vac-U-Digga NZ
Limited and Beacos NZ Limited.
The liquidators may be reached at:
Michael James Billingsley
Neil Robert Cussen
Cor Cordis
PO Box Q1165
Queen Victoria Building
1230 New South Wales
Australia
WAITAKARURU HONEY: Court to Hear Wind-Up Petition on March 2
------------------------------------------------------------
A petition to wind up the operations of Waitakaruru Honey Limited
will be heard before the High Court at Auckland on March 2, 2023,
at 10:00 a.m.
Team Aqua Limited filed the petition against the company on Nov.
15, 2022.
The Petitioner's solicitor is:
Jeffrey Gray Ussher
Level 19
191 Queen Street
Auckland
WORK FORCE: Creditors' Proofs of Debt Due Jan. 31
-------------------------------------------------
Creditors of Work Force Connect Limited are required to file their
proofs of debt by Jan. 31, 2023, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Dec. 15, 2022.
The company's liquidator is Kelera Nayacakalou.
===============
P A K I S T A N
===============
PAKISTAN: Premier Says UAE Extends US$2B Loan, Offers US$1B More
----------------------------------------------------------------
The Associated Press reports that Pakistan's prime minister said on
Jan. 12 that the United Arab Emirates agreed to extend a US$2
billion loan to his country and provide an additional US$1 billion
as his nation struggles to recover from devastating floods this
summer and a dire economic crisis.
According to the AP, Prime Minister Shahbaz Sharif's office made
the announcement after he met with the leader of the UAE, Abu Dhabi
ruler Sheikh Mohammed bin Zayed Al Nahyan. It said Sheikh Mohammed
agreed to the loan extension and the new loan, desperately needed
as foreign currency reserves in the nation have plummeted to US$5.5
billion - enough money for just under a month of imports.
"Both sides agreed to deepen the investment cooperation, stimulate
partnerships and enable investment integration opportunities
between the two countries," Sharif's office said.
The Emirates did not immediately acknowledge the rollover of the
loan and the granting of the additional billion, the report states.
It said the meeting at Abu Dhabi's Al Shati Palace saw the two
leaders discuss "the historical relations between the UAE and
Pakistan and ways to enhance joint cooperation and expand its
horizons in a way that serves the mutual interests of the two
countries."
Sharif's visit to the UAE marks his third since becoming premier
last April, the AP notes. The seven sheikhdoms of the Emirates are
home to some 1.7 million Pakistanis, many manual laborers that
power its economy and send money back to their nation.
Stung by food and fuel increases caused by Russia's war on Ukraine,
Pakistan also has been struggling to cut into its government
spending as well as inflation grows, the AP says. That's worsened
the economic crisis gripping a country where authorities have
ordered malls to shut earlier to save on energy costs. The
International Monetary Fund released a crucial tranche of US$1.1
billion to Pakistan in August but talks have stalled since.
Saudi Arabia earlier last week floated investing US$10 billion in
Pakistan and increasing its deposits in the State Bank of Pakistan
to US$5 billion there, according to the AP.
On Jan. 11, Sharif said several countries and some of the world's
institutions have pledged US$9.7 billion to help Pakistan rebuild
from the summer's catastrophic flood that killed 1,739 people.
That's far above the pledges - which have gone unfulfilled in other
similar international conferences, the report relates.
The floods destroyed more than 2 million homes and caused more than
US$30 billion in damage.
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.
=====================
P H I L I P P I N E S
=====================
NORTHERN FOODS: Abolition Underway Amid Losses, Non-Performance
---------------------------------------------------------------
Louise Maureen Simeon at The Philippine Star reports that the
Governance Commission for GOCCs (GCG) said it has taken the
necessary steps to abolish Northern Foods Corp. (NFC) amid its
non-performance and losses.
The Philippine Star relates that the GCG, the central oversight
body for government owned and controlled corporations (GOCCs), said
it has been proactive in abolishing NFC, initiating actions for the
liquidation of the state-run firm as early as 2021.
According to the report, the Commission on Audit earlier said GCG
has failed to convene the technical working group (TWG) for NFC's
abolition that resulted in unresolved issues on compensation,
liquidation of assets, settlement of liabilities, and further
depletion of the financial resources of NFC.
The TWG is composed of the Departments of Agriculture and Budget
and Management, as well as the Land Bank of the Philippines and the
Privatization Management Office under the Department of Finance.
In December 2021, then president Rodrigo Duterte approved the
abolition of NFC, the report recalls.
The Philippine Star says GCG chairperson Alex Quiroz argued that it
is incorrect to attribute inaction on the part of GCG.
"Based on records, the TWG members nominating their respective
authorized representatives were requested as early as Dec. 9, 2021,
but completed only on July 22, 2022," the report quotes Mr. Quiroz
as saying.
"While waiting for the TWG members to be completed, the GCG
approved the schedule of separation plan of NFC on June 23, 2022,
which resulted in approximately P1.3 million savings per month on
salaries and wages," he said.
Further, Mr. Quiroz said upon his appointment in September, the GCG
immediately tried to convene the TWG to discuss the abolition of
NFC, the report relays.
It was only on Oct. 8 last year when the TWG convened and conducted
its first meeting. By Oct. 26, the GCG and the TWG received the
updated plan of liquidation as requested from NFC.
Another meeting was conducted just before Christmas on Dec. 21.
According to the report, Mr. Quiroz said the next meeting will be
scheduled once the NFC board attains majority members to constitute
a quorum, as the board of an abolished GOCC continues to possess
powers to effect the liquidation of the GOCC.
Ilocos Norte-based NFC supplies tomato paste for manufacturers of
tomato sauce or ketchup, as well as to other food chains in the
country. NFC has been incurring losses since its founding in the
1980s.
GCG is mandated to rationalize the public corporate sector through
streamlining, reorganization, or merger, as well as adhere to the
policy of safeguarding public funds to provide the highest
liquidation value of abolished GOCCs, the report notes.
=================
S I N G A P O R E
=================
COMMERZ ASSET: Creditors' Proofs of Debt Due on Feb. 12
-------------------------------------------------------
Creditors of Commerz Asset Management Asia Pacific Pte. Ltd. are
required to file their proofs of debt by Feb. 12, 2023, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on Jan. 6, 2023.
The company's liquidator is:
Loke Poh Keun
c/o 80 Robinson Road #11-01
Singapore 068898
DELTA LINK: Court Enters Wind-Up Order
--------------------------------------
The High Court of Singapore entered an order on Jan. 6, 2023, to
wind up the operations of Delta Link Pte. Ltd.
Maybank Singapore Limited filed the petition against the company.
The company's liquidators are:
BDO Advisory Pte Ltd
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
KREUZ SUBSEA: Commences Wind-Up Proceedings
-------------------------------------------
Members of Kreuz Subsea Group Pte Ltd, on Jan. 9, 2023, passed a
resolution to voluntarily wind up the company's operations.
The company's liquidators are:
Lin Yueh Hung
Ng Kian Kiat
8 Wilkie Road
#03-08 Wilkie Edge
Singapore 228095
PARAMINDO SINGAPORE: Commences Wind-Up Proceedings
--------------------------------------------------
Members of Paramindo Singapore Ltd and Paramindo Energi Singapore
Pte Ltd, on Jan. 10, 2023, passed a resolution to voluntarily wind
up the companies' operations.
The companies' liquidator is Xerxes J. Medora.
SUNTECCITY THIRTY: Court to Hear Wind-Up Petition on Jan. 18
------------------------------------------------------------
A petition to wind up the operations of Sunteccity Thirty Pte Ltd
will be heard before the High Court of Singapore on Jan. 18, 2023,
at 10:00 a.m.
Nimisha Pandey filed the petition against the company on Dec. 9,
2022.
The Petitioner's solicitors are:
Clasis LLC
12 Marina Boulevard
#30-03 Marina Bay Financial Centre Tower 3
Singapore 018982
=================
S R I L A N K A
=================
CEYLON ELECTRICITY: Fitch Cuts National LongTerm Rating to 'B(lka)'
-------------------------------------------------------------------
Fitch Ratings has downgraded Ceylon Electricity Board's (CEB)
National Long-Term Rating to 'B(lka)' from 'AA-(lka)'. The Outlook
is Stable. Fitch has simultaneously downgraded the National
Long-Term Rating of CEB's outstanding senior unsecured debentures
to 'B(lka)', from 'AA-(lka)'.
The rating action follows the downgrade of the Sri Lankan
sovereign's Long-Term Local-Currency Issuer Default Rating (IDR) to
'CC' from 'CCC' on 1 December 2022, and the subsequent
recalibration of Sri Lanka's National Rating scale to reflect
changes in the relative creditworthiness among the country's
issuers. For details, see Fitch Downgrades Sri Lanka's Long-Term
Local-Currency IDR to 'CC'; Affirms 'RD' Foreign-Currency IDR and
Fitch Ratings Recalibrates Sri Lanka's National Rating Scale".
CEB's ratings are equalised with that of its parent, the Sri Lankan
sovereign, in line with Fitch's Government-Related Entities (GRE)
Rating Criteria. This is based on its assessment of a very strong
likelihood of support from the state. CEB is the country's monopoly
electricity transmitter and distributor and accounts for around 75%
of power generation.
KEY RATING DRIVERS
'Very Strong' State Linkages: Fitch believes CEB's status,
ownership and control by the Sri Lankan sovereign is 'Very Strong'.
The government fully owns CEB, appoints its board and senior
management, sets tariffs, and decides on its investment strategy.
CEB fulfils an essential service for the state by providing
electricity at subsidised rates for a large portion of the
population.
'Very Strong' Support Record: Government support to CEB has
included direct grants, two-step loans from international donor
agencies - which account for around 65% of its outstanding debt -
equity injections, and guarantees on bank loans for some of its
investment projects and working-capital funding. Fitch expects the
support to continue, as the government would want to ensure that
the country's power supply is uninterrupted.
'Very Strong' Support Incentive: Fitch sees the socio-political
implications of a CEB default as 'Very Strong'. A default would
lead to service disruption because CEB accounts for most of the
country's power-generation capacity. A default would also make it
difficult for CEB to source imported feedstock for power
generation, such as heavy oil and coal. CEB's independent power
producer (IPP) agreements, which account for around 20% of the
power generated, would be affected, as they are external
arrangements with no clear alternatives, and most of these IPPs use
imported oil in their operations.
A default would have a 'Very Strong' financial effect on the state,
as CEB's project loans are also the state's obligations. These
loans are extended by bilateral and multilateral agencies and
routed through the government for development of the country's
power infrastructure. A default of CEB's outstanding debentures
would also limit other state entities' ability to tap capital
markets for funding in future. Support has been forthcoming,
evident from CEB's continued ability to service its debt
obligations and manage liquidity requirements despite its weak
financial profile.
Higher Tariffs: The government raised the average electricity
tariff by 75% in August 2022 amid higher feedstock costs that led
to large losses for CEB. Fitch does not believe the tariff hike
will be sufficient to cover CEB's operating costs at current
feedstock prices, but it should help to reduce losses. The
government has announced another 75% tariff hike under a
cost-reflective tariff mechanism to be enforced from 2023, but the
implementation is uncertain, pending regulatory approval. Fitch
believes the proposed increase would help CEB to break even and
improve its financial flexibility.
Challenges in Importing Feedstock: CEB generates almost 50% of its
electricity from thermal sources and imports all its feedstock
requirements. It has had increasing difficulty paying for feedstock
in the past 12 months amid the country's severe foreign-currency
shortage. Suppliers have refused to sell feedstock on credit terms
in light of Sri Lanka's poor financial profile. The government has
helped CEB by prioritising fuel imports and providing foreign
currency to pay for purchases, but procuring feedstock will
continue to remain challenging with the country's weak external
finances.
Large Dues to Power Generators: CEB owed LKR105 billion to IPPs and
renewable energy generators as of end-December 2022, which has
remained the same from around August 2022. Some IPPs have stopped
supplying to the grid due to the non-payment, while smaller players
are facing significant liquidity issues. CEB plans to settle the
dues in the next 12 months, with the support of the tariff hike and
by negotiating new funding lines. Fitch estimates it will receive
around LKR175 billion in additional cash annually from the recent
tariff hike, but most of it will be used to pay for thermal
feedstock.
Indeterminate Standalone Profile: Fitch believes providing a
standalone credit view of CEB is not meaningful, as its ability to
operate depends on continued state support and it cannot be
meaningfully delinked from the government. CEB's free cash flow
remains negative due to the absence of a robust tariff structure,
high debt-servicing obligations and large capital outlays.
DERIVATION SUMMARY
CEB has a monopoly in electricity transmission and distribution and
owns and operates the majority of the installed power-generation
capacity in the country. CEB provides electricity at subsidised
rates, fulfilling an essential service for the sovereign. CEB's
rating is equalised with that of the sovereign in line with its GRE
rating criteria where linkages and support incentives are assessed
as 'Very Strong' under each sub-factor score.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer:
- Sri Lanka's annual electricity demand growth to average around 6%
over 2023-2026
- Generation mix to broadly remain at 50% thermal, 30% hydro and
20% others over 2023-2025
- Capex of LKR80 billion-90 billion per annum over the next two
years for maintenance and building new generation capacity
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- An upgrade of the Sri Lankan sovereign's Long-Term IDR could
result in corresponding action on CEB's National Long-Term Rating.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- A downgrade of the Sri Lankan sovereign's Long-Term IDR could
result in corresponding action on CEB's National Long-Term Rating;
- CEB entering into a temporary negotiated waiver or standstill
agreement following a payment default on a large financial
obligation.
For the sovereign rating of Sri Lanka, the following sensitivities
were outlined by Fitch in the agency's Rating Action Commentary on
1 December 2022:
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- Completion of a commercial debt restructuring that Fitch judges
to have normalised the relationship with private-sector creditors.
- The government puts local-currency debt service on a sustainable
path, and avoids a default or debt restructuring.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- The Long-Term Local-Currency IDR would be further downgraded if
the government announces plans to restructure or defaults on its
local currency-denominated debt.
LIQUIDITY AND DEBT STRUCTURE
Liquidity Support from Government: CEB had LKR5.0 billion in
unrestricted cash at end-September 2022 compared with LK88 billion
in debt due in the next 12 months. Around half of the outstanding
debt funds working capital, which Fitch believes will be rolled
over in the normal course of business. Fitch believes the
government will continue to provide funding support for CEB to meet
its contractual maturities amid the company's weak liquidity.
CEB also has significant payments due to feedstock suppliers such
as Ceylon Petroleum Corporation (CPC) and other private power
generators. CEB plans to settle the debt by using additional cash
flow from the increased electricity tariff and by securing new
funding facilities from state banks. CEB received LKR81 billion in
funding in 2022 from the Ministry of Finance to settle its dues to
CPC, and Fitch believes similar liquidity support from the
government would be forthcoming, given the essential service CEB
provides.
ISSUER PROFILE
CEB is the sole electricity transmitter and distributor in Sri
Lanka and is a fully owned state entity. It accounts for 75% of
domestic electricity generation through its network of hydro and
thermal power plants.
Entity/Debt Rating Prior
----------- ------ -----
Ceylon Electricity
Board Natl LT B(lka) Downgrade AA-(lka)
senior unsecured Natl LT B(lka) Downgrade AA-(lka)
*********
S U B S C R I P T I O N I N F O R M A T I O N
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Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
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Editors.
Copyright 2023. All rights reserved. ISSN: 1520-9482.
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