/raid1/www/Hosts/bankrupt/TCRAP_Public/230217.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Friday, February 17, 2023, Vol. 26, No. 36
Headlines
A U S T R A L I A
CLOUGH LIMITED: To Exit Voluntary Administration
DIGITAL SURGE: Stakeholders Sign Recovery Plan
GLASS TECH: Second Creditors' Meetings Set for Feb. 24
I.C.CLEANERS: First Creditors' Meeting Set for Feb. 23
M8 SUSTAINABLE: First Creditors' Meeting Set for Feb. 23
METRO HOMES: First Creditors' Meeting Set for Feb. 23
PROJECT SEA: First Creditors' Meeting Set for Feb. 23
SEAFARMS GROUP: Administrators Appointed for Prawn Farming Project
C H I N A
TIMES CHINA: Halts Bond Trading Amid Debt Restructuring Talks
I N D I A
AARTI INFRA-PROJECTS: CARE Keeps D Debt Ratings in Not Cooperating
ADANI GROUP: Unit Gets a Reprieve, Courtesy of Coal Business
ADARSHA INTERNATIONAL: CARE Keeps C Debt Rating in Not Cooperating
ARORA INDUSTRIES: CARE Moves D Debt Rating to Not Cooperating
ARORA KNIT: CARE Keeps D Debt Rating in Not Cooperating Category
BAJORIA AGRO: CARE Keeps D Debt Rating in Not Cooperating
DCNPL PRIVATE: CARE Assigns B+ Rating to INR25cr LT Loan
FLOURISH PAPER: CARE Keeps D Debt Ratings in Not Cooperating
GANAPATI BUILDERS: CARE Keeps C Debt Rating in Not Cooperating
GOPISH PHARMA: CARE Keeps D Debt Ratings in Not Cooperating
KIRAN GLOBAL: CARE Keeps D Debt Ratings in Not Cooperating
KIRTIMAN CEMENTS: CARE Lowers Rating on INR27cr LT Loan to D
KRISH CEREALS: CARE Lowers Rating on INR23cr LT Loan to C
KRISHNASHRAY INDIA: CARE Keeps C Debt Rating in Not Cooperating
LAKSHMIVENKATESHWARA: CARE Keeps C Debt Rating in Not Cooperating
MAGADH PRECISION: CARE Keeps D Debt Ratings in Not Cooperating
PARAMOUNT STEELS: CARE Keeps D Debt Rating in Not Cooperating
PCK COTTON: CARE Keeps B-/A4 Debt Ratings in Not Cooperating
RAGHAVENDRA INDUSTRIES: CARE Keeps D Ratings in Not Cooperating
RAM COMMODITIES: CARE Lowers Rating on INR13.23cr Loan to D
REGENCY EXPORTS: CARE Keeps B Debt Rating in Not Cooperating
SHAPE ENGINEERING: CARE Keeps D Debt Ratings in Not Cooperating
SWASTIK CEMENT: CARE Keeps C Debt Rating in Not Cooperating
TECHNO DRUGS: CARE Keeps B- Debt Rating in Not Cooperating
TINDIVANAM TOLLWAY: CARE Reaffirms D Rating on INR210.94cr Loan
UMANG REALTECH: CARE Keeps D Debt Rating in Not Cooperating
VAIBHAVA LAKSHMI: CARE Assigns B+ Rating to INR40cr LT Loan
I N D O N E S I A
SRI REJEKI: Moody's Withdraws 'Ca' Corporate Family Rating
M O N G O L I A
MONGOLIA: Moody's Affirms 'B3' Issuer & Sr. Unsecured Bond Ratings
N E W Z E A L A N D
ACME PROJECTS: Court to Hear Wind-Up Petition on Feb. 24
JACKSCO CIVIL: Liquidators Seize Porsche Race Care
KRUMBLED FOODS: Court to Hear Wind-Up Petition on March 24
NEW ZEALAND MANUKA: Thomas Lee Rodewald Appointed as Receiver
NITRAME LIMITED: Court to Hear Wind-Up Petition on Feb. 24
REDCURRENT: Homeware Retailer Placed Into Liquidation
SOUTHFORT COMMERCIAL: Court to Hear Wind-Up Petition on March 13
S I N G A P O R E
DELTA OFFSHORE: Court to Hear Judicial Management Bid on Feb. 23
SGPEST PTE: Court to Hear Wind-Up Petition on March 3
XYPHER PTE: Court Enters Wind-Up Order
ZILINGO PTE: Parliament Member Asks re EDBI and Temasek Losses
S R I L A N K A
BANK OF CEYLON: Fitch Hikes LongTerm Foreign-Currency IDR to 'CC'
- - - - -
=================
A U S T R A L I A
=================
CLOUGH LIMITED: To Exit Voluntary Administration
------------------------------------------------
Murray & Roberts Holdings Limited said that the second meeting of
creditors in relation to Clough Limited's voluntary administration
process was held on Feb. 15, 2023, and the creditors have followed
the recommendation of the Administrators and voted in favour of the
proposed Deed of Company Arrangement ("DOCA"). This brings a
conclusion to Clough's voluntary administration. The DOCA
recognizes the agreement between the Administrators and Webuild
S.p.A. in terms of which Webuild will take effective control of
Clough entities and projects with effect from Feb. 16, 2023.
On Dec. 5, 2022, Murray & Roberts announced the termination of the
proposed disposal by Murray & Roberts of its interest in Clough to
Webuild, and the subsequent placing of both Clough and Murray &
Roberts Pty Ltd, the Group's holding company in Australia ("MRPL"),
into voluntary administration. MRPL holds the Group's interests in
Clough and RUC Cementation Pty Ltd ("RUC").
MRPL's administration process is progressing, and it is the Group's
expectation that there should be more clarity on the outcome of
MRPL's voluntary administration, during March 2023.
Due to the large deficit in Clough's Creditor Trust, the voluntary
administration of Clough will result in the loss of the Group's
investment value in both Clough and in RUC, as matters stand.
The Group is, however, continuing to explore options to retain
ownership of RUC.
Murray & Roberts intends to publish its interim financial results
for the six months to Dec. 31, 2022 on SENS on March 1, 2023. MRPL,
which includes the Group's interest in Clough and RUC, will be
deconsolidated from the Group with effect from Dec. 5, 2022, and
the financial results of the deconsolidated companies will be
reported as discontinued operations in the Income Statement as from
the start of the current financial year, July 1, 2022. This
accounting treatment will be reflected in the Group's half-year
financial results and the investment value of Clough and RUC will
thus no longer be reflected in the Group's net asset value from
Dec. 31, 2022.
Murray & Roberts announced on Nov. 16, 2022, the conclusion of the
Group's debt refinancing and restructuring process. In addition to
the proposed sale of the Group's investment in the Bombela
Concession Company (RF) Pty Ltd, the Group continues to evaluate
various options to de-lever the balance sheet and achieve a
sustainable long term capital structure.
The Group will consider the release of a trading statement ahead of
its interim results, once the required level of certainty has been
reached.
About Clough Ltd
Clough Ltd -- http://www.clough.com.au/-- is an engineering and
construction contractor providing full project lifecycle solutions
primarily to the oil and gas industry in Australia and South East
Asia. Its services range from front-end engineering design,
construction, installation and commissioning to long-term
operations and asset management.
On Dec. 5, 2022, Clough Group went into voluntary administration
after a takeover deal with WeBuild fell through, leaving its 1,250
employees uncertain about their future.
Clough's South African owners, Murray & Roberts, appointed Sal
Algeri, Jason Tracy, David Orr and Glen Kanevsky of Deloitte as
voluntary administrators, news.com.au disclosed.
DIGITAL SURGE: Stakeholders Sign Recovery Plan
----------------------------------------------
CoinDesk reports that Australian cryptocurrency exchange Digital
Surge is set to come back online after stakeholders signed the
recovery plan on Feb. 15, according to documents seen by CoinDesk.
The stakeholders signed the recovery plan a day before the exchange
was set to go into liquidation, CoinDesk relates citing documents
submitted to Australian Securities and Investments Commission
(ASIC). Creditors were notified earlier on Feb. 15 through a
circular.
The exchange is expected to resume trading next week, a person
familiar with the situation said, CoinDesk relays.
The Brisbane-based exchange was hit hard by the collapse of FTX as
it held 33 million Australian dollars on the defunct platform
founded by Sam Bankman-Fried.
This is the first successful restructuring of a Australian
cryptocurrency exchange, according to Michael Bacina, digital asset
specialist and partner at Piper Alderman, CoinDesk relays. "Digital
assets face challenging legal issues, and it took the hard work of
knowledgeable specialists to get here. The deal is a testament to
the goodwill seen throughout the blockchain community in
Australia," Mr. Bacina added.
In December, Digital Surge passed into voluntary administration, a
process in which the management hands over control to licensed
insolvency practitioners who independently assess its financial
situation. Melbourne-based investment firm KordaMentha was
appointed as administrators.
In late January 2023, creditors approved a long-term recovery plan
for Digital Surge that still needed the company and the
administrators to sign on the dotted line within 15 business days.
The documents were signed before the deadline ended on Feb. 15, the
report notes.
Under Australian law, the approval of a judge is not required, as
the vote of the creditors is what decides the outcome.
As previously reported, according to a deed of company arrangement
(DoCA), the exchange will receive a loan of 1.25 million Australian
dollars from an associated business, Digico, to support the
business. The company has now received the loan from the Directors,
CoinDesk says.
According to the DoCA, customers with under $250 will be repaid in
full and others will receive at least 45% of their balance
immediately and the remaining 55% over five years from profits of
the company.
"This is a great result for all stakeholders and provides the best
possible return to customers and creditors given the
circumstances," CoinDesk quotes David Johnstone, KordaMentha
administrator, as saying.
About Digital Surge
Digital Surge is a cryptocurrency trading company. It provides
trading and exchange service for Bitcoin. It offers to sells
Bitcoin with fiat currencies to traders, investors, and
individuals. It also provides bill payment service in Austria using
Bitcoin.
David Johnstone, Scott Langdon and John Mouawad of KordaMentha were
appointed as administrators of the company on Dec. 8, 2022.
GLASS TECH: Second Creditors' Meetings Set for Feb. 24
------------------------------------------------------
A second meeting of creditors in the proceedings of Glass Tech
Management Australia Pty Ltd and Glass Tech Group Pty Ltd has been
set for Feb. 24, 2023 at 11:00 a.m. and 11:30 a.m., respectively,
at the offices of Beacon Advisory at Level 6, AMP Building, 1
Hobart Place in Canberra and via Zoom meeting.
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 Feb. 23, 2023 at 4:00 p.m.
Anthony Lane of Beacon Advisory was appointed as administrator of
the company on Jan. 19, 2023.
I.C.CLEANERS: First Creditors' Meeting Set for Feb. 23
------------------------------------------------------
A first meeting of the creditors in the proceedings of I.C.Cleaners
and Labour Pty Limted will be held on Feb. 23, 2023, at 11:00 a.m.
at the offices of O'Brien Palmer at Level 9, 66 Clarence Street in
Sydney and via virtual meeting technology.
Daniel Frisken of O'Brien Palmer was appointed as administrator of
the company on Feb. 13, 2023.
M8 SUSTAINABLE: First Creditors' Meeting Set for Feb. 23
--------------------------------------------------------
A first meeting of the creditors in the proceedings of M8
Sustainable Limited will be held on Feb. 23, 2023, at 11:00 a.m.
via virtual meeting only.
Robert Michael Kirman, Jonathan Philip Henry, and Robert Conry
Brauer of McGrathNicol were appointed as administrators of the
company on Feb. 13, 2023.
METRO HOMES: First Creditors' Meeting Set for Feb. 23
-----------------------------------------------------
A first meeting of the creditors in the proceedings of Metro Homes
WA Pty Ltd will be held on Feb. 23, 2023, at 9:30 a.m. at The
Fremantle Room, Parmelia Hilton Perth, 14 Mill Street in Perth and
via teleconference facilities.
Clifford Rocke and Greg Prout of WA Insolvency Solutions were
appointed as administrators of the company on Feb. 13, 2023.
PROJECT SEA: First Creditors' Meeting Set for Feb. 23
-----------------------------------------------------
A first meeting of the creditors in the proceedings of Project Sea
Dragon Pty Ltd will be held on Feb. 23, 2023, at 2:00 p.m. via
online meeting.
Shaun McKinnon and Andrew Fielding of BDO were appointed as
administrators of the company on Feb. 14, 2023.
SEAFARMS GROUP: Administrators Appointed for Prawn Farming Project
------------------------------------------------------------------
Business News Australia reports that a proposed $1.7 billion prawn
farming project spanning the Northern Territory and Western
Australia is now all at sea after its owners opted to call in
voluntary administrators, tipped over the edge by an adjudicator's
decision that they pay $13.9 million to a former construction
contractor.
BNA relates that the move comes just a day after Seafarms Group
called for a trading halt and then subsequent suspension pending
the formal announcement over Project Sea Dragon (PSD), which last
year was the subject of leadership turmoil following an
unfavourable review from a new CEO.
Having announced on Feb. 14 the board had resolved it was no longer
in the company's interests to fund PSD, on Feb. 15 Seafarms
announced the appointment of Shaun McKinnon and Andrew Fielding of
BDO Business Restructuring as voluntary administrators for the
contentious project, BNA discloses.
According to the report, Seafarms' directors have proposed a Deed
of Company Arrangement (DOCA) to Project Sea Dragon's creditors,
although in Feb. 14's announcement they highlighted the outcome of
the appointment would be uncertain with the alternative being that
the subsidiary is liquidated.
Given "the outcome of the voluntary administration may materially
impact SFG's financial position" and "it will be very challenging
to comply with its continuous disclosure obligations", the board
requested shares be suspended beyond the initial trading halt which
was due to be lifted on Feb. 16.
"As a result of the decision made by the adjudicator on 3 February
2023 regarding a construction dispute, the voluntary administration
became a necessary step for Project Sea Dragon," said Seafarms
Group CEO Rod Dyer, a former chief project officer of the now
under-administration subsidiary, who was promoted to the group's
top leadership role following the departure of Mick McMahon last
May, BNA relays.
"Seafarms' other existing operations based in Queensland are
separate to Project Sea Dragon and as such these operations are not
under administration.
"As the administration process progresses, we will provide the
market with further updates."
=========
C H I N A
=========
TIMES CHINA: Halts Bond Trading Amid Debt Restructuring Talks
-------------------------------------------------------------
Caixin Global reports that Times China Holdings Ltd. is working on
a proposal to restructure nearly CNY11 billion (US$1.6 billion) of
onshore bonds, people familiar with the matter told Caixin, the
latest casualty of a credit crunch engulfing the country's real
estate sector.
Trading in the bonds, which were issued by the developer's
subsidiary Guangzhou Times Holdings Group Co. Ltd., was halted on
the Shanghai Stock Exchange on Feb. 15 after an application to the
bourse, according to a filing dated Feb. 14, Caixin relates. The
suspension, which affects 10 separate bond issues, indicates that a
debt restructuring plan is being put together, market participants
said.
Times China Holdings Limited operates as a real estate development
company. The Company develops and markets residential areas, office
buildings, hotels, restaurants, and other related areas. Times
China Holdings markets its buildings throughout China.
As reported in the Troubled Company Reporter-Asia Pacific on Jan.
6, 2023, Moody's Investors Service has downgraded Times China
Holdings Limited's corporate family rating to Ca from Caa1 and the
company's senior unsecured rating to C from Caa2. The outlook
remains negative.
=========
I N D I A
=========
AARTI INFRA-PROJECTS: CARE Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Aarti
InfrA-Projects Private Limited (AIPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 26.23 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 15.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 26,
2021, placed the rating(s) of AIPL under the 'issuer
non-cooperating' category as AIPL 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. AIPL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated October 12, 2022, October 22, 2022, November 1,
2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Nagpur-based, Aarti Infra-Projects Private Limited (AIPL) was
incorporated in May 2006 and is a part of the Mandhana Group of
Industries. Promoted by Mr Kanhaiyalal S Mandhana, and its entire
shares are held by the Mandhana family. AIPL operates in three
verticals viz, irrigation projects (barrage/dam radial gates and
others), thermal power projects (fabrication and erection of heavy
structures for power station and others) and hydro power projects
(automatic tilting gates, high radial gates etc.
ADANI GROUP: Unit Gets a Reprieve, Courtesy of Coal Business
------------------------------------------------------------
WSJ Pro Bankruptcy reports that Adani Enterprises, the flagship
listed vehicle of the beleaguered Adani Group conglomerate, has
long pitched itself as a good environmental, social and governance
company - but it has coal to thank for a reprieve during the most
turbulent time in its history.
On Feb. 13, Adani Enterprises swung to a profit of INR8.2 billion
(US$99.3 million) in the quarter ended in December, from a loss of
INR116.3 million in the year-earlier period, helped by robust
revenue growth of 42%, WSJ Pro discloses. Most of the boost came
from its coal-trading business, the firm's largest segment.
But coal may turn out to be an unreliable ally, and investors
probably know that: Shares surged almost 10% after the results were
announced, but pared most gains to close up about 2%. WSJ Pro says
the company's stock remains about half as valuable as it was before
Hindenburg Research, a New York-based short seller, accused the
Adani Group of stock manipulation and accounting fraud in late
January. Adani Group denies the allegations.
WSJ Pro says Adani Enterprises is the largest coal supplier in
India, according to its website - so it isn't exactly a surprise to
see a quarter of bumper earnings given where coal prices were last
quarter. Prices of Newcastle thermal coal, the main Asian
benchmark, roughly doubled between December 2021 and the end of
2022. Adani Enterprises also has businesses spanning airports,
solar equipment and green hydrogen, and is an incubator focused on
launching new infrastructure businesses.
The problem is what comes next: Newcastle futures have now fallen
by about 45% since the end of 2022, according to Refinitiv data, as
worries about Europe's gas supplies have receded and concerns over
global growth have risen, WSJ Pro relays.
WSJ Pro notes that the company still has a lot of work to do to
regain investors' confidence, particularly in a much less favorable
environment for coal. Debt and a high-interest burden remain an
issue, although there were signs of modest progress. On a
consolidated basis, the firm's interest coverage ratio - operating
income relative to interest payments due - improved to 2.3 from 1.7
the quarter before. The company has vowed to work on moderating its
leverage, the report states.
Last quarter, coal prices did most of the work for Adani
Enterprises. This quarter, and in the quarters to come, it will
have to find other ways to rebuild its balance sheet-and investors'
confidence, WSJ Pro states.
Adani Enterprises Limited is a holding company. The Company is an
integrated infrastructure with businesses spanning coal trading,
coal mining, oil and gas exploration, ports, multi-model logistics,
power generation and transmission, gas distribution, and edible oil
and agro commodities.
ADARSHA INTERNATIONAL: CARE Keeps C Debt Rating in Not Cooperating
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Adarsha
International (AI) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.20 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated January 21,
2022, placed the rating(s) of AI under the 'issuer non-cooperating'
category as AI 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. AI continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
December 7, 2022, December 17, 2022, December 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).
Adarsha International (AI) was established in April 2000 as a
proprietorship firm by Mr. Partha Saha. The firm is engaged in
exporting of non-basmati rice, dal and oil cake to Bangladesh. The
registered office of the firm is situated at North 24 Parganas,
West Bengal.
ARORA INDUSTRIES: CARE Moves D Debt Rating to Not Cooperating
-------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Arora
Industries to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 79.88 CARE D; ISSUER NOT COOPERATING
Facilities Rating moved to ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE has been seeking information from Arora Industries to monitor
the ratings vide e-mail communications dated January 2, 2023,
January 3, 2023, January 5, 2023 and numerous phone calls. However,
despite repeated requests, the firm has not provided the requisite
information for monitoring the ratings. In line with the extant
SEBI guidelines, CARE has reviewed the rating on the basis of the
best available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating. The ratings on Arora
Industries bank facilities will now be denoted as CARE D; ISSUER
NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Combined
While arriving at the rating of Arora Industries (AI), CARE has
taken a combined view of Arora Industries and Arora Knit Fab
Private Limited, as both the entities (together referred to as
'Group' above) are engaged in a similar line of business, have
operational linkages, have the same promoters and are controlled by
a common management team.
Detailed description of the key rating drivers
Key rating weaknesses
* Delays in debt servicing: There has been delay in the servicing
of its debt obligations due to the fire breakout in their plant.
As per banker feedback, there are ongoing delays in principal and
interest repayments for term loan and there are over-drawal in the
working capital facilities.
Liquidity: Poor
Arora Industries has poor liquidity position as they have suffered
losses because of the fire breakout.
Arora Industries is a Partnership Firm registered with Registrar of
firms of Indian Partnership Act,1932. The firm is managed by Shri
Mohinder Singh Arora and Ravinder Pal Singh, both are partners in
this firm. The firm is engaged in manufacturing and exports of
Knitted Fabrics, Home Textiles, Garments, Mink Blankets and other
substitutes.
ARORA KNIT: CARE Keeps D Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Arora Knit
Fab Private Limited (AKFPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 57.89 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE has been seeking information from AKFPL to monitor the ratings
vide e-mail communications dated January 2, 2023, January 3, 2023,
January 5, 2023 and numerous phone calls. However, despite repeated
requests, the company has not provided the requisite information
for monitoring the ratings.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating. The ratings on Arora Industries bank facilities will now be
denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Combined
While arriving at the rating of Arora Knit Fab Private Limited CARE
has taken a combined view of Arora Industries and Arora Knit Fab
Private Limited, as both the entities (together referred to as
'Group' above) are engaged in a similar line of business, have
operational linkages, have the same promoters and are controlled by
a common management team.
Key weaknesses
* Delays in debt servicing: There has been delay in the servicing
of its debt obligations due to the fire breakout in their plant.
As per banker feedback, there are ongoing delays in principal and
interest repayments for term loan and there are overdrawal in the
working capital facilities.
Liquidity: Poor
Arora Knit Fab Private Limited has poor liquidity position as they
have suffered losses because of the fire breakout.
AKFPL, incorporated in the year 2000, under companies Act 1956 and
the flagship entity of the Arora Group. The company is engaged in
manufacturing and exports of Knitted Fabrics, Home Textiles,
Garments, Mink Blankets and the substitutes. The company is managed
by Shri Mohinder Singh Arora (Chairman, founder CEO) and Shri
Ravinder Pal Singh elder brother of Mohinder Singh Arora.
BAJORIA AGRO: CARE Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Bajoria
Agro Processing Private Limited (BAPPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 32.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 17,
2021, placed the rating(s) of BAPPL under the 'issuer
non-cooperating' category as BAPPL 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. BAPPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated October 3, 2022, October 13,
2022, October 23, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Rajasthan based Bajoria Agro Processing Private Limited (BAPPL) was
incorporated in 2013 and is currently being managed by Mr. Mahender
Gopal Bajoria and Mr. Ankur Bajoria. BAPPL manufactures wheat-based
products including maida, sooji, rava and atta at its manufacturing
facility at Abohar, Punjab.
DCNPL PRIVATE: CARE Assigns B+ Rating to INR25cr LT Loan
--------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of DCNPL
Private Limited (DCNPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 25.00 CARE B+; Stable Assigned
Long Term/ 12.00 CARE B+; Stable/CARE A4
Short Term Assigned
Bank Facilities
Rationale and key rating drivers
The rating assigned to the bank facility of DCNPL is constrained on
account of the implementation risk and saleability risk associated
with its ongoing residential project 'Hills Vista-II' and
residential plotting scheme of 'Greenville ONYX'. The rating also
takes into consideration DCNPL's regional concentration of
operations and inherent risks associated with the real estate
sector.
The rating is also partially setoff on account of achievement of
financial closure for the completion of the on-going project. The
rating, however, favorably takes into account experience &
resourcefulness of the promoters in the construction business,
availability of land bank and favorable location of the project
along with receipt of requisite approvals and clearances for the
ongoing project. The rating also takes cognizance of satisfactory
booking status from the sale of completed residential project and
plotting scheme.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Successful completion of the ongoing real estate projects within
envisaged cost and time parameters along-with sale of units at
envisaged rates
* Timely receipt of proceeds from the booked units and timely
mobilization of customer advances in line with construction pace.
Negative factors
* Cost overrun of more than 20% in ongoing project.
* Time overrun in execution of project by more than 6 months from
scheduled date of completion.
* Delay in sale of units from the ongoing project resulted in
stretch in liquidity position.
Analytical approach: Standalone
Key strengths
* Experience of the promoters in the real estate sector: The
promoters of DCNPL are resourceful and have a requisite experience
in the construction business. DCNPL has been promoted by Mr. Sanjay
Jain and Mr. Nilesh Jain. Mr. Nilesh Jain is engineering graduate
with a successful track record of building technology companies and
innovative platforms. The company have developed two projects with
a total area of 3.68 lsf in Indore.
* Favourable location of the project: Both the projects are being
developed at the emerging residential location in Indore and has
reflected good demand from the end users. Further, the project site
is in close proximity with key connecting routes which provides
good connectivity and accessibility.
* Modest booking status of the completed project: DCNPL has sold
around 58% of the total units from its completed project of Hills
Vista-1 and Greensville. Out of the total units of 371, the company
has received bookings/sold 216 units as on September 30, 2022. The
company has received 100% sales value from the sold inventory of
Rs, 69.01 crore.
* Availability of land bank: The promoter of the company has a
large land bank in and around Indore of approximately 6.95 lakh
square meter and the market value of these land parcels stands at
INR 123.66 crore.
Key weaknesses
* Project execution and saleability risk with on-going residential
project: The project, Hills Vista Phase-II is at very nascent stage
of development stage limited to land development which exposes the
company to construction risk. As on September 30, 2022, DCNPL has
incurred 14.25 % of the total project cost, representing cost
towards land of INR 3.19 crore and construction cost of INR 2.98
crore. Hence, completion of the project within estimated time and
cost parameters is critical from the credit perspective. Further,
the company has received the booking advance of INR 0.73 crore (i.e
7% of the total customer advance required to fund the cost of the
project) towards nine flats in 'Hills Vista-II with a total booking
sale consideration of INR 7.31 crore. Thus, the timely receipts
from the sale of units from the on-going residential project shall
remain key rating monitorable.
* Pending financial closure: Almost 40% (Rs.20 crore) of the
project cost is envisaged to be funded by the term debt. However,
DCNPL has not yet achieved financial closure for the same and is in
the receipt of in-principle sanction from the bank.
* Geographic concentration in Indore: The operations of the company
are geographically concentrated as all the projects developed in
past as well as ongoing projects are primarily concentrated in and
around Indore, Madhya Pradesh. The geographical concentration of
projects exposes DCNPL's growth prospects to the macro and
socio-political upheavals in the region.
* Inherent risk associated with real estate sector: The life cycle
of a real estate project is long and the state of the economy at
every point in time, right from land acquisition to construction to
actual delivery, has an impact on the project. This
capital-intensive sector is extremely vulnerable to the economic
cycles. Further, the real estate sector in India is highly
fragmented with many regional players, who have significant
presence in their respective local markets which in turn leads to
intense competition within the industry. The real estate sector is
sensitive to the economic cycle and interest rates. Adverse
movement in interest rate affects the real estate players in both
ways – by hampering demand as well as increasing the cost of
construction.
Liquidity: Stretched
The liquidity profile of the DCNPL remains stretched marked by low
bookings as on January 24, 2023 as the project is at nascent stage
of development resulting into lower committed receivables from the
sold units. Further, owing to its dependence on customer advances
and term loan for funding its further construction schedule, for
which financial closure is not yet achieved, might put stress on
the cash flows.
The above risk is mitigated to an extend from the sale of units
from the completed project which will serve as a sufficient
liquidity cushion.
DCNPL Private Limited (Erstwhile known as Digvijay Communications
Networks Private Limited) is a Private Limited Company constituted
in October 2015 for construction, development of real estate
including commercial/residential complex. The company is promoted
by Mr. Sanjay Jain and Mr. Nilesh Jain. Over the years, the
promoter group has developed over 3.68 lakh square feet (lsf) of
residential and commercial projects in Madhya Pradesh. At present,
DCNPL is executing two projects DCNPL Hills Vistaa-II (Phase 2)
(Residential Project) and DCNPL Greensville ONYX (Residential
Plotting Scheme).
FLOURISH PAPER: CARE Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Flourish
Paper & Chemicals Limited (FPCL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 8.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated November 19,
2021, placed the rating(s) of FPCL under the 'issuer
non-cooperating' category as FPCL 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. FPCL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated October 5, 2022, October 15, 2022, October 25,
2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution
while using the above rating(s).
Flourish Paper and Chemicals Limited (FPCL), incorporated in June
7, 1995, is being managed by Mr. Atul Mehra, Mrs. Sangeeta Mehra
and Mr. Sanjay Mahajan. The company is engaged in manufacturing of
AKD Emulsion and other allied chemicals used in the paper and
textile industry at its manufacturing facility located in
Derabassi, Punjab. In addition to this, FPCL has logistic business
of chemical distribution. UP Alums Private Limited (UAP), the group
entity of FPCL, was incorporated in January, 1992, however,
commenced its commercial operations in July, 1998.
GANAPATI BUILDERS: CARE Keeps C Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Ganapati
Builders Limited (GBL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated December 10,
2021, placed the rating(s) of GBL under the 'issuer
non-cooperating' category as GBL 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. GBL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated October 26, 2022, November 5, 2022, November 15,
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).
Odhisa based GBL was incorporated on March 29, 1995 and it is
currently managed by Mr. Santosh Agarwal, Mr. Anand Agarwal and Mr.
Krishna Kumar Agarwal. Since its incorporation, the company has
been engaged in development of commercial and residential real
estate projects. In past, the company has developed various real
estate projects in the state of Odhisa namely Ganapati Villa,
Ganapati residency, Ganapati Market Complex, New Ganapati Villa,
KRP Residency Block A. The company gives construction activities of
its projects to contractor and it focus mainly on marketing
aspects. The promoters have satisfactory business experience of
more than two decades in real estate industry.
GOPISH PHARMA: CARE Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Gopish
Pharma Limited (GPL) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Long Term/ 0.50 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
Short Term Bank 2.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 22,
2021, placed the rating(s) of GPL under the 'issuer
non-cooperating' category as GPL had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. GPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated October 8, 2022, October 18, 2022, October 28,
2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
GPL is a closely held public limited company incorporated in 1995.
The company was originally incorporated as a private limited
company and its constitution was changed in 1996. The present
directors of the company include Mr. Ravi Prakash Goyal, Mr. Ratish
Goyal and Ms. Santosh Goyal. GPL is engaged in manufacturing of
generic drugs at its manufacturing facility located in Solan,
Himachal Pradesh.
KIRAN GLOBAL: CARE Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Kiran
Global Chems Limited (KGCL) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 93.15 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Long Term/ 108.50 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 25,
2021, placed the rating(s) of KGCL under the 'issuer
non-cooperating' category as KGCL 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. KGCL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated October 11, 2022, October 21, 2022, October 31,
2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Established in 1989, Chennai based KGCL is one of India's leading
manufacturer of sodium silicate. KGCL is the flagship company of
the MS Jain group which is engaged in various businesses such as
manufacturing and trading of chemicals, food processing and
shipping and logistics.
KIRTIMAN CEMENTS: CARE Lowers Rating on INR27cr LT Loan to D
------------------------------------------------------------
CARE Ratings has revised ratings on certain bank facilities of
Kirtiman Cements & Packaging Industries Limited (KCPIL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 27.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE B-
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 23,
2021, placed the rating(s) of KCPIL under the 'issuer
non-cooperating' category as KCPIL 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. KCPIL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated October 9, 2022, October 19,
2022, October 29, 2022, February 6, 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 rating revision also considers the
ongoing delays in debt servicing as recognized from publicly
available information i. e. CIBIL filings.
Incorporated in 1996, Kirtiman Cements and Packaging Industries
Limited (KCPIL) is promoted by Mr. Ashwani Kumar Oberoi, Mr Sunil
Kumar Oberoi and their family members. KCPIL has been operational
since August 2008 and is engaged into manufacturing of Poly
Propylene (PP) woven fabric bags used in packaging industry. Apart
from PP woven bags, the company also supplies PP woven fabric to
traders. Company is a part of the Ashwani Oberoi Construction
Company India Limited (AOCC) group which is engaged in the real
estate line of business.
KRISH CEREALS: CARE Lowers Rating on INR23cr LT Loan to C
---------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Krish Cereals Private Limited (KCPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 23.00 CARE C; Stable; Revised from
Facilities CARE B; Stable
Rationale and key rating drivers
The rating assigned to the bank facilities of KCPL has been revised
on account of stretched liquidity position leading to
overutilisation of working capital limits and delays in debt
servicing (on debt not rated by CARE), and low profitability
margins. Further, the ratings are also constrained by weak coverage
indicators, seasonality associated with the industry and working
capital intensive nature of operations and susceptibility to
fluctuation in raw material prices to profitability margins.
However, the rating derives strengths from experienced promoters
and favourable location of operations.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Substantial improvement in scale of operations to above INR300 cr
with PBILDT margins improving significantly to ~5%, on a sustained
basis with overall gearing ratio improving to below 2x, and TDGCA
ratio improving to around 10x, on a sustainable basis.
Negative factors
* Significant reduction or discontinuance in the funding support
from the promoter group going forward
* Any major debt funded capex resulting in deterioration of capital
structure with overall gearing deteriorating further
beyond 3.00x caused by increased working capital reliance or debt
funded capex.
Analytical approach: Standalone
Key weaknesses
* Overdrawals in the working capital limits and delay in the loans:
As per the written feedback of the banker dated January 25, 2023,
there has been few instances in servicing the debt obligations as
the company belongs to a seasonal industry. These delays are in off
seasons mostly. However, all the dues have been repaid as on date
and the conduct of the account is satisfactory. The term loans are
not rated by CARE Ratings and are, therefore, not recognized as
Default as per the CARE's policy on the Default recognition. Also,
as per the bank statements received from the company, there has
been several instances of overdrawals in the working capital limits
also, however, the same has been repaid in a maximum of 8 days.
* Low Profitability Margins with weak Coverage Indicators: The
profitability margin declined marginally over previous year and
remained low marked by PBILDT margin of 1.32% in FY22 as against
1.44% in FY21. The decline was due to higher material cost on
proportionate basis as well as higher employee expenditure.
Further, PAT Margin remained stagnant and low with previous year at
0.11% during FY22. The interest coverage ratio of the company is
1.26x in FY22 (PY-1.32x), the decline in the interest coverage
ratio is on account of lower PBILDT in FY22. The TOI of the company
has remained stable with revenues of INR239.7 crores in FY22 (PY-Rs
237.14 crores). The company has done sales of 150 crores till
December.
* Susceptibility to fluctuation in raw material prices and monsoon
dependent operation: Agro-based industry is characterized by its
seasonality, due to its dependence on raw materials whose
availability is affected directly by the vagaries of nature. The
price of rice moves in tandem with the prices of paddy.
Availability and prices of agro commodities are highly dependent on
the climatic conditions. The monsoon has a huge bearing on crop
availability which determines the prevailing paddy prices. Since
there is a long time lag between raw material procurement and
liquidation of inventory, the company is exposed to the risk of
adverse price movement resulting in lower realization than
expected.
* Fragmented nature of industry coupled with high level of
government regulation: The commodity nature of the product makes
the industry highly fragmented, with numerous players operating in
the unorganized sector with very less product differentiation.
Furthermore, the concentration of rice millers around the paddy
growing regions makes the business intensely competitive.
Furthermore, the raw material (paddy) prices are regulated by the
government to safeguard the interest of farmers which limits the
bargaining power of rice mills over the farmers. Given the fact
that prices for finished products is market determined while the
cost of raw material is fixed by Government of India through the
MSP (Minimum Support Price) mechanism, the profitability margins
remain vulnerable, especially in times of high paddy cultivation.
* Working capital intensive nature of operations: The average
operating cycle of the company remained elongated at ~90 days
during FY22 (PY-8 Days). The company generally receives payment in
around 3 months from the customers leading to the average
collection period of 84 days in FY22 which deteriorated from ~68
days in FY21. On the raw material procurement side, the company
gets a credit period ranging between 30-60 days. This led to
average creditors' period of ~44 days in FY22.
Key strengths
* Experienced promoters with long track record of operations in the
rice industry: The operations of the company are currently being
managed by Mr. Kamal Singla and Mr. Dinesh Kumar. Both are having
an experience of half a decade in the rice industry through their
association with the company. There is also an experienced team of
professionals for carrying out the day-to-day operations of the
company. The promoters & related parties of the company have also
infused unsecured loans which are subordinate to term loans.
* Favourable manufacturing location along with established business
relationship with customers and supplier: The company's
manufacturing units are located in Nissing (Karnal, Haryana). This
area is a hub for paddy/rice, leading to its easy availability. The
company was established in 2010, with the promoters having an
experience of a decade in the rice industry through their
association with the company. Further, favourable location of the
plant in close proximity to paddy growers in Haryana has led to
development of long-term relationships with the suppliers and
therefore easy procurement of raw materials. On the customer side,
long track record has enabled the company to establish strong
business relationships with its clientele in the market, which in
turn leads to repeat orders.
Liquidity: Stretched
The working capital utilisation has remained almost fully utilised
with frequent overdrawals along with delays in repayment in
servicing the GECL loan. As per the interaction with the banker
dated January 25, 2023, there are recent delays in the repayments
of the term loan obligations. However, all the dues have been
repaid as on date and the conduct of the account is satisfactory.
The term loans are not rated by CARE Ratings and are, therefore,
not recognized as Default as per the CARE's policy on the Default
recognition. The debt repayment obligation in FY23 is 1.99 crores
against the projected GCA of INR0.85 crores. Also, the cash and
cash equivalents of the company has decreased from INR0.42 crores
to INR0.16 crores in FY22.
KCPL is engaged in the business of milling and processing of
basmati rice. The company is also engaged in the procurement of
semi-processed rice from the market which is further processed
through color sorter and grading machines to remove the impurities.
The company has an installed manufacturing capacity of 16 metric
tonnes per hour in Nissing (Karnal, Haryana). The operations of
KCPL are presently being managed by Mr. Kamal Singla and Mr. Dinesh
Kumar.
KRISHNASHRAY INDIA: CARE Keeps C Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shri
Krishnashray (India) Private Limited (SKPL) continues to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.09 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 15,
2021, placed the rating(s) of SKPL under the 'issuer
non-cooperating' category as SKPL 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. SKPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated October 1, 2022, October 11, 2022, October 21,
2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Incorporated in 2001 by Mr Jagat Killawala with his wife Mrs Charu
Killawala, SKIPL (erstwhile Shri Krishnashray, proprietorship
entity established in 1996, later converted into a private limited
company in 2001) is engaged in the manufacturing of modular
switches, step lights and LED lights at its manufacturing facility
located at Bhimpore, Nani Daman.
LAKSHMIVENKATESHWARA: CARE Keeps C Debt Rating in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Sri
Lakshmivenkateshwara Rice Mill (SLRM) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 4.84 CARE C; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 0.65 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 30,
2021, placed the rating(s) of SLRM under the 'issuer
non-cooperating' category as SLRM 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. SLRM
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 05,
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 Lakshmivenkateshwara Rice Mill (SLRM) is a proprietary concern
owned by Mr. A. Raghunath Babu. SLV started its business operations
from January 2009. The firm is engaged in milling of paddy with
total installed capacity of 6 tons of rice per hour at its
manufacturing plant located at Tumkur district in Karnataka. SLRM
sells its products (rice, broken rice and bran) to the final
customer mostly through brokers in the states of Karnataka,
Tamilnadu and Kerala. The firm has a total of around 45 employees
which includes about 25 contract labours.
MAGADH PRECISION: CARE Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Magadh
Precision Equipment Limited (MPEL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ 35.00 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
Short Term Bank 10.00 CARE D; ISSUER NOT COOPERATING;
Facilities Rating moved to ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 18,
2021, placed the rating(s) of MPEL under the 'issuer
non-cooperating' category as MPEL 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. MPEL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated October 4, 2022, October 15, 2022, October 24,
2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Dewas-based (Madhya Pradesh), MPEL was incorporated in July 1986 as
a public limited company formerly known as “Magadh Steel
Industries” primarily promoted by Mr. Girja Nand Sharma, Mr.
Krishna Kant Kumar and Ms. Meera Sharma. MPEL is engaged in
manufacturing of capital equipment for metal processing industry
which includes manufacturing of hot and cold rolling mill machines,
slitting lines, galvanizing lines. The manufacturing unit situated
at Dewas, Madhya Pradesh. MPEL executes both domestic as well as
export orders received mostly from China, Bangladesh, USA, Japan,
Tanzania and Dubai.
PARAMOUNT STEELS: CARE Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Paramount
Steels Limited (PSL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated December 3, 2020, placed the
rating(s) of PSL under the 'issuer non-cooperating' category as PSL
had failed to provide information for monitoring of for the rating
exercise as agreed to in its Rating Agreement. PSL continues to be
non-cooperative despite repeated requests for submission of
information through emails, phone calls and a letter/email dated
January 20, 2023, January 23, 2023, January 24, 2023.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Paramount Steels Limited (PSL) previously Sriyansh Steel Limited
was originally incorporated on June, 1981. The name of the company
was changed in March, 1999. PSL was established with an aim to set
up a manufacturing facility at Ludhiana, Punjab for manufacturing
of steel items like steel rounds, steel bright bars, steel rods,
wire drawing etc. with and installed capacity of 30,000 metric
tonnes per annum.
PCK COTTON: CARE Keeps B-/A4 Debt Ratings in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of PCK Cotton
Private Limited (PCPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/Short 24.00 CARE B-; Stable/CARE A4;
Term Bank ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 19,
2021, placed the rating(s) of PCPL under the 'issuer
non-cooperating' category as PCPL 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. PCPL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated October 5, 2022, October 15, 2022, October 25,
2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
PCK Cotton Private Limited (PCPL) was incorporated in 1998 but
started its operations in 2004 by Mr. Chetan Mehta, Ms. Geeta Mehta
and Mr. Paras Mehta as a private limited company and is engaged in
the business of cotton ginning and pressing. PCPL's plant is
located at Jalgaon; Maharashtra and it has undertaken one more
plant at Aurangabad on lease.
RAGHAVENDRA INDUSTRIES: CARE Keeps D Ratings in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of
Raghavendra Industries (RI) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ 4.20 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
Long Term Bank 9.80 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated December 28,
2021, placed the rating(s) of RI under the 'issuer non-cooperating'
category as RI 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. RI continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
November 13, 2022, December 3, 2022, February 06, 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).
Kadapa–based (Andhra Pradesh), RI was established as
proprietorship firm in 1998 promoted by Mr. Srinivasulu Penagaluri.
RI is engaged in manufacturing of power & distribution transformers
and special purpose transformers used as stabilizers in different
electrical appliances and electrical circuits. The manufacturing
unit situated at Kadapa, Andhra Pradesh which is spread over 5
acres area. RI has associate concerns operating in similar line of
business viz. M/s. Raghavendra Electricals.
RAM COMMODITIES: CARE Lowers Rating on INR13.23cr Loan to D
-----------------------------------------------------------
CARE Ratings Limited has downgraded the rating assigned to the
short-term bank facility – Cash credit/Overdraft and Bank
Guarantee of Shri Ram Commodities (SRC) to 'CARE D' as there are
ongoing delays in servicing its bank obligations.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Short Term Bank 13.23 CARE D; Revised from CARE A4
Facilities
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Timely servicing of bank obligations
Negative factors
* Not Applicable
Analytical approach: Standalone
Key weaknesses
* Ongoing Delays: As per feedback received from banker, there are
ongoing overdue in repayment of term loan and CC/OD limit is
overdrawn. Overdue on term loan has been continuing since November
2022.
* Small scale of operations: The firm's operations remain small
with total income of INR4.13 crore in FY22, decreased from INR5.38
crore in FY21 on account of decline in net brokerage income.
* Inherent volatility in the revenue profile with majority income
coming from brokerage segment: The majority income of the firm is
derived from the trading in commodities. The income derived from
this segment is highly volatile and speculative in nature. Though
the income from the segment has increased on a year-on-year basis
in FY22, the ability of the firm to continue to achieve profits in
the segment remains a key rating consideration.
* Increasingly competitive business segment: Broking business in
India is highly competitive and SRC faces fierce competition from
large broking firms. Large broking firms are in better position to
reduce operating expenses and maintain their margins. Broking
business in India is becoming increasingly competitive with
reducing brokerage fees and volatile volumes.
* Constitution of the entity being a partnership firm: SRC's
constitution as a partnership firm has the inherent risk of
possibility of withdrawal of the partners' capital at the time of
personal contingency and firm being dissolved upon the
death/retirement/insolvency of partners. Moreover, partnership
firms have restricted access to external borrowing as credit
worthiness of partners would be the key factor affecting credit
decision of the lenders.
Key strengths
* Experienced partners: Mr. Rattan Lal Aggarwal, Ms. Deepa Gupta
and Mr. Ramesh Bansal are partners for SRC. They have 9 years of
industry experience through their association with only SRC.
Partners have adequate acumen about various aspects of business
which is likely to benefit SRC in the long run.
Liquidity: Stretched
There are ongoing delays in servicing of bank obligations. The
liquidity position of the firm remained stretched marked by full
utilization of overdraft facility for past 12 months ended on
September 30, 2022. The firm takes adequate margin from its clients
to enable it to maintain liquidity. However, the firm has free cash
& bank balances of INR8.52 crore as on March 31, 2022. The firm's
debt constituted non-fund based working capital facilities (bank
guarantee of INR9.00 crore) which is used for maintaining margin
with the exchanges and overdraft facility of INR4.23 crore.
SRC was established in June 2010 as a partnership firm. The
commercial operations started in 2011. The firm is being currently
managed by Mr. Rattan Lal Aggarwal, Ms. Deepa Gupta and Mr. Ramesh
Bansal as its partners. SRC is a trading member of Multi Commodity
Exchange of India Limited (MCX Member ID - 46005) with clearing
support of Globe Commodities limited and trading cum clearing
member of National Commodity and Derivatives exchange Limited
(NCDEX Member ID - 01059) since 2011. The firm has also taken the
membership from Bombay Stock Exchange Ltd. (BSE- Member id: 6693)
and National Stock Exchange of India Ltd. (NSE - Member id: 90150).
SRC has 30 franchisees spread across India.
REGENCY EXPORTS: CARE Keeps B Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Regency
Exports Private Limited (REPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.44 CARE B; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 19,
2021, placed the rating(s) of REPL under the 'issuer
non-cooperating' category as REPL 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. REPL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated October 5, 2022, October 15, 2022, October 25,
2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The rating assigned to the bank facilities of REPL have been
revised on account of non-availability of requisite information.
The rating revision also considers the small scale of operations as
well as high overall debt in FY22.
Incorporated in 1990, Regency Exports Private Limited (REPL) is
mainly engaged in manufacturing of terry towels. REPL procures its
entire raw material from domestic suppliers and generated majority
of its revenue from exports.
SHAPE ENGINEERING: CARE Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Shape
Engineering Co. Private Limited (SECPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.50 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Long Term/ 0.58 CARE C; Stable/CARE A4;
Short Term ISSUER NOT COOPERATING;
Bank Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated November 29,
2021, placed the rating(s) of SECPL under the 'issuer
non-cooperating' category as SECPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. SECPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated October 15, 2022, October 25,
2022, October 29, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Uttarakhand based, Shape Engineering Company (P) Ltd. (SECPL) was
established on November 9, 1984 as a private limited company and is
currently being managed by Mr. Shri Sudhir Kumar Jain and Mr. Shri
Saurabh Jain. The company is engaged in manufacturing of turbine
parts with its manufacturing unit located in Uttarakhand. The
company procures raw materials namely, M.S. Plates, Steel and Iron
Ingots from the domestic suppliers.
SWASTIK CEMENT: CARE Keeps C Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Swastik
Cement Products Private Limited (SCPPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated November 22,
2021, placed the rating(s) of SCPPL under the 'issuer
non-cooperating' category as SCPPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. SCPPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated October 8, 2022, October 18,
2022, October 28, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Uttar Pradesh based SCPPL was incorporated in February, 1980. The
company is currently being managed by Mr Ajit Kumar Jain and Mr
Rishabh Tulsyan. The firm primarily engaged in the manufacturing of
Mild Steel (MS) ingots. The company has its manufacturing facility
located at Chandauli, Uttar Pradesh. Also, the company is engaged
in manufacturing of wheat flour on job work basis for Swastik
Grains Corporation (associate firm). SCPL has an associate concern
namely Swastik Grains Products Private Limited, which was
incorporated in March, 2007 and is engaged in processing of wheat
flour.
TECHNO DRUGS: CARE Keeps B- Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Techno
Drugs and Intermediates Private Limited (TDIPL) continues to remain
in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.85 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 17,
2021, placed the rating(s) of TDIPL under the 'issuer
non-cooperating' category as TDIPL 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. TDIPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated October 3, 2022, October 13,
2022, October 23, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Established in March 1992, Techno Drugs & Intermediates Private
Limited (TDIPL) as a private limited company and is engaged in
manufacturing of intermediates and bulk drugs. The promoters of the
company are Dr. Vipin Chandra Gandhi and Mr. Sameer Gandhi. TDIPL's
manufacturing unit is situated in GIDC Panoli, Ankleshwar, Gujarat
and employs around 50 workers.
TINDIVANAM TOLLWAY: CARE Reaffirms D Rating on INR210.94cr Loan
---------------------------------------------------------------
CARE Ratings has reaffirmed ratings on certain bank facilities of
Tindivanam Tollway Private Limited (PTTL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 210.94 CARE D Reaffirmed
Rationale and key rating drivers
The rating assigned to the bank facilities of PTTL is constrained
by the poor liquidity position owing to lower traffic due to
leakage of traffic since the toll plaza is located at one end of
the project highway which is spanning over 37 kms and due to
presence of alternate route resulting in delays in debt servicing.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Increase in toll traffic with subsequent improvement in the
liquidity profile & regularization of debt servicing
* Funding support from sponsors for regularization of debt
servicing
Analytical approach: Standalone
Key weaknesses
* Stretched liquidity position with delays in debt servicing:
Delays are due lower toll collection. Initially lower toll
collection was on account of COVID-19 and now the same are
continuing despite of ease of COVID-19 due to leakage of traffic
since the toll plaza is located at one end of the project highway
which is spanning over 37 kms. As a result, the traffic witness
lower toll income albeit increased marginally to INR15.07 crore in
FY22 (PY: INR12.31 crore) which lead to cashflow mismatch resulting
in delays in debt servicing.
* Presence of alternate route on the stretch: The project road
forms part of a route connecting Pondicherry to Chennai
(combination of NH-45 and project road). A major portion of the
traffic plying on the project road is originating from Pondicherry
or Chennai. However, there is a two-lane road, ECR connecting
Pondicherry and Chennai which traverses along with the coast of
Tamil Nadu. The ECR is major competing road for the NH-45 project
road section due the presence of various tourists' spot which has
resulted in diversion of traffic and lower traffic on the project
stretch. While the company had proposed auxiliary toll plaza, the
same has not been approved by National Highway Authority of India
(NHAI) resulting in revenue leakage.
* Operations & Maintenance (O&M) Risk: As per the concession
agreement, PTTL is responsible for operating and maintaining the
project stretch. The company undertakes regular O&M works on its
own and is therefore exposed to risk of increasing prices. PTTL has
not entered fixed priced contract for the operation and maintenance
of project stretch. This apart, the company has not undertaken any
Major maintenance, since commencement of operation, given low
traffic flow on the project stretch and absence of funding support
from sponsors.
* Lower traffic levels as compared to the initial estimates: PTTL
commenced tolling in December 2011. The company's revenues are
derived from toll collections from various users at the single toll
booth located at km. 9.00 of the project stretch. In FY22, the
total operating income increase by 22% to INR 15.07 crore as
against INR 12.31 crore in FY21. The toll traffic has been on the
lower side which has resulted in lower profitability & cash
accruals vis-à-vis debt servicing obligation.
Key strengths
* Experienced promoters: PTTL was originally promoted by Maytas
Infra Limited (MIL) and NCC Limited (NCC). Later in 2009, Terra
Projects Private Ltd (TPPL), one of the sub-contractors and a group
company of Nagpur-based Jayaswal Neco Industries Ltd. acquired
26.10% stake in PTTL. Currently, IL&FS, NCC, TPPL and NCC
Infrastructure Holdings limited are the shareholders of PTTL.
Liquidity: Poor
The company has a poor liquidity profile with low toll collection
due to low traffic on stretch and subsequently delays in debt
servicing.
Pondicherry Tindivanam Tollway Private limited (PTTL) is a Special
Purpose Vehicle (SPV) incorporated on March 27, 2007 to undertake
the construction, operation, maintenance of National Highways in
Tamil Nadu. It is promoted by the consortium of Nagarjuna
Construction Company Limited (NCC) along with its fully owned
subsidiary NCC Infrastructure Holdings Ltd, IL&FS Engineering
Constructions Ltd (ILFS) and Terra-Projects Limited. The SPV is
involved in strengthening of four-lane road of 37.92 kms stretch on
the Pondicherry-Tindivanam section of NH-66, in the state of Tamil
Nadu. The Concession Agreement (CA) was executed between PTTL and
National Highways Authority of India (NHAI) on July 19, 2007 for a
concession period of 30 years from the date of financial closure,
including the construction period of 30 months. The Commercial
Operation Date (COD) or Scheduled Project Completion Date (SPCD) of
the project was July 14, 2010. However, on account of delay by NHAI
in handing over the land, the construction could not be completed
within the scheduled time. The company had managed to receive an
extension of Time (EOT) for COD till April 27, 2011, from NHAI. The
project received Provisional COD and has commenced tolling on
December 12, 2011. The actual cost incurred in the project was
INR361.96 crore as against estimated cost of INR314.62 crore.
UMANG REALTECH: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Umang
Realtech Private Limited (URPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 100.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated December 27,
2021, placed the rating(s) of URPL under the 'issuer
non-cooperating' category as URPL 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. URPL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated November 12, 2022, November 22, 2022, December
2, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Incorporated in May 2007, Umang Realtech Private Limited (URPL) is
a JV between Uppal Housing Private Limited and private equity
player Indus Capital Partners, LLC (USA) (ICP). ICP holds 52% stake
in URPL, UHPL holds 45% and the remaining 3% is with Mr. Ajay
Mangal, Ex-CEO of URPL. The company is into real estate development
and is undertaking residential group housing projects in NCR.
VAIBHAVA LAKSHMI: CARE Assigns B+ Rating to INR40cr LT Loan
-----------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Sri
Vaibhava Lakshmi Enterprises Private Limited (SVL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 40.00 CARE B+; Stable Assigned
Rationale and key rating drivers
The rating assigned to the bank facilities of SVL is tempered by
small size of entity, low profitability margin, leveraged capital
structure, weak coverage indicators, working capital intensive
nature of operations, highly fragmented and competitive nature of
industry and risk associated with disease outbreak in poultry
business. The ratings, however derive comfort from experienced
promoters, improving scale of operations and stable industry
outlook.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Increase in scale of operations by more than INR75 crore with
increase in PAT margin by more than 1%
* Overall gearing improving to less than 2x
Negative factors
* Decline in TOI or PBILDT margin by more than 30% y-o-y.
* Further deterioration in capital structure or liquidity profile
from existing levels
Analytical approach: Standalone
Key weaknesses
* Modest scale of operations, thin PAT margins with low networth
base: Although the company has satisfactory track record, the scale
of operations remained modest at INR62.15 crore in FY22 (PY:
Rs.52.78 crore) on account increase in sale of eggs, hens and
litter among others. The clientele of the company includes local
sellers and dealers. Although the PBILDT margin remained
satisfactory in the range of 10-13% during review period, the PAT
margin declined and remained thin i.e., from 1.64% in FY18 to 0.73%
in FY22 on account of increase in raw material prices coupled with
increase in interest cost due to availment of COVID loans and
vehicle loan in FY22.
* Leverage capital structure and weak coverage indicators: The
capital structure of the company remained leveraged marked by
overall gearing ratio of 5.11x as on March 31, 2022 on account of
low networth base of INR8.13 crore as against total debt of
INR41.57 crore for the said period, out of the total debt
51% pertains to term loan/COVID loan/Vehicle loan, 39% working
capital borrowing and remaining 10% unsecured loans. Due to
aforementioned reason the coverage indicators of the company
remained weak and deteriorated during review period marked by
PBILDT interest coverage from 2.68x in FY18 to 1.75x in FY22 and
total debt/GCA from 11.25x to 15.34x for the said period.
* Working capital-intensive nature of operations: The business
operations of the company are working capital-intensive nature of
operations. The operating cycle of the entity elongated to 187 days
in FY22 against 127 days in FY18 due elongated inventory days from
141 days to 214 days for the said period due to its nature of
business operations where in the company is required to keep high
inventory level of bird and raw material stock to feed the birds in
different growing stages and to mitigate fluctuation in raw
material prices. SVL operates on cash & carry model. In respect of
few customers, it extends one week credit period. SVL makes payment
to suppliers of chicks and other feed suppliers in 15-40 days. The
average utilization of working capital limit for the last six
months ended i.e., Jan 2023 remained high at 80-85%.
* Highly fragmented and competitive nature of industry: SVL faces
stiff competition in the poultry business from large number of
established and unorganized players in the market. Competition gets
strong with the presence of unorganized players leading to pricing
pressures. However, improved demand scenario of poultry products in
the country enables well for the company.
* Prevailing risk of disease outbreak in raising poultry: The
margins of SVL are susceptible to the volatility associated with
the realizations of eggs and inherent risk of disease outbreak
associated with the poultry industry which can lead to demand
collapse. Commercial poultry operations especially in the broiler
segment tend to be highly volatile, given the low level of capital
investment required in the business and the fragmented nature of
the industry. Changes in the prices of live birds, table eggs and
feed costs have a strong impact on the profitability and cash flows
of the companies operating in poultry industry. Further there are
large variations in the production and consumption of poultry
meat.
Key strengths
* Satisfactory track record with experienced and resourceful
promoters: Sri Vaibhava Lakshmi Enterprises Private Limited (SVL)
was incorporated in the year 2011 and promoted by Mr. K.
Venkatanarayana (Managing Director), Ms. K. Vasanta Sandhya Rani
(Director) along with other family members. He has experience of
more than a decade in the poultry business. Due to long term
presence in the market, the promoters have good relations with
suppliers and customers.
Stable industry outlook
The market is expected to grow annually by 7.70% (CAGR 2023-2027).
In relation to total population figures, per person revenues of
US$15.45 are generated in 2023. Convenience and ease of use and
storage of processed eggs drive the egg processing market. Due to
the increasing urban population and busy lifestyles, there is an
increasing demand for convenience food. Many consumers are willing
to spend money on convenience foods since they do not have the time
or skills to make food at home. As a result, the need for
convenience food retail has increased. Moreover, due to
technological advancements, processed eggs are more efficiently
treated and pasteurized, assuring safety, reduced risk of
contamination, and extended shelf life. The development of longer
shelflife products and increased consumer demand are important
factors boosting the industry.
Liquidity: Stretched
Liquidity remained stretched marked by tightly matched cash
accruals to meet its repayment obligation. Further, cash and bank
balance remained low at INR 0.61 crore as on March 31, 2022 while
its cash flow from operating activities improved from INR1.42 crore
in FY21 to INR 4.02 crore during FY22. Furthermore, average
utilization of its working capital limit remained at 80-85% for
last six months ended Jan 2023.
Sri Vaibhava Lakshmi Enterprises Private Limited (SVL) was
incorporated in the year 2011 and promoted by Mr. K.
Venkatanarayana (Managing Directors), Ms. K. Vasanta Sandhya Rani
(Director) along with other family members. The firm is engaged in
farming of egg, laying poultry birds (chickens) and trading of
eggs, cull birds and their manure. The company has two units, One
in Telangana with 70 Acre area and the second one in Nandigama with
16 Acres.
=================
I N D O N E S I A
=================
SRI REJEKI: Moody's Withdraws 'Ca' Corporate Family Rating
----------------------------------------------------------
Moody's Investors Service has withdrawn the Ca corporate family
rating of Sri Rejeki Isman Tbk (P.T.) (Sritex). The rating outlook
prior to withdrawal was negative.
RATINGS RATIONALE
Moody's has decided to withdraw the rating for its own business
reasons.
COMPANY PROFILE
Sri Rejeki Isman Tbk (P.T.) (Sritex), located in Central Java,
Indonesia (Baa2 stable), is a vertically integrated manufacturer of
yarn, greige fabric (raw fabric), finished fabric and apparel,
including uniforms and retail clothing.
===============
M O N G O L I A
===============
MONGOLIA: Moody's Affirms 'B3' Issuer & Sr. Unsecured Bond Ratings
------------------------------------------------------------------
Moody's Investors Service has affirmed the Government of Mongolia's
long-term B3 issuer and foreign currency senior unsecured bond
ratings and maintained the stable outlook. The short-term issuer
ratings are affirmed at Not Prime.
Mongolia's B3 rating balances elevated liquidity and external risks
against strong growth prospects, as well as a debt repayment
profile that has settled at more sustainable levels compared to the
past. Following a recent sovereign debt refinancing transaction,
Mongolia's financing needs for the next few years have diminished
to more manageable, albeit still high, levels. Moreover, the recent
relaxation in China's COVID policies, coupled with continued
progress on Mongolia's infrastructure and logistics networks and
the development of major mining projects will support a gradual
recovery in foreign currency revenue and allow GDP growth to rise
to potential rates over the next few years. At B3, the credit
profile also incorporates institutional weaknesses and a lack of
economic diversity that raises volatility in growth and fiscal
outcomes.
The stable outlook is premised on the view that external liquidity
risks will remain elevated but manageable. While financing
pressures may spike at various junctures given Mongolia's sizeable
market debt obligations through to the end of 2026, Moody's expects
that the government will continue to have access to markets at
costs that are not prohibitive, containing probable risks of a
credit event to levels consistent with a B3 rating.
Mongolia's local-currency country ceilings remain at B1. The
two-notch gap to the sovereign rating reflects a large government
footprint in the economy, high commodity reliance in overall
revenues, and still-high external imbalances. The foreign-currency
country ceiling remains at B3, representing a two-notch gap to the
local currency ceiling, to take into consideration Moody's
assessment of weak policy effectiveness and high external debt that
point to transfer and convertibility risks at times of heightened
external vulnerability.
A List of Affected Credit Ratings is available at
https://bit.ly/3YC6WW7
RATINGS RATIONALE
RATIONALE FOR THE STABLE OUTLOOK
FUNDING PRESSURES HAVE ABATED FROM ELEVATED LEVELS AND WILL REMAIN
MANAGEABLE
Moody's expects Mongolia will retain adequate market access that
together with continued access to bilateral and multilateral
funding will allow it to meet upcoming financing requirements.
Mongolia's liquidity and external funding challenges have begun to
abate since the end of 2022, and foreign exchange reserves have
gradually recovered on the back of improvements in exports and
trade credit inflows, as well as one-off inflows such as principal
repayments on project financing loans by Oyu Tolgoi, Mongolia's
largest copper mine. Moreover, a debt refinancing exercise
conducted at the start of 2023 has materially reduced the
maturities due in 2023 and 2024.
Following significant logistics disruptions related to China's zero
covid policy, exports improved considerably in December, buoying
foreign reserves. Looking ahead, the end of border disruptions and
an accelerated pace of recovery in the Chinese economy will support
export growth, although Moody's anticipates that in nominal terms
export growth will slow as commodity prices moderate, even as
import growth remains strong.
In mid-January, the government issued a $450 million bond,
alongside the launch of a tender and exchange offer of $200
million. Investors who participated in the tender and exchange had
outstanding 2023 or 2024 bond maturities replaced at par value by
cash or new bonds maturing in 2028. Following this, the
government's Eurobond maturities are reduced to $82 million in 2023
and $390.7 million in 2024.
While the refinancing exercise has reduced the government's direct
borrowing requirements, outstanding maturities by the Development
Bank of Mongolia LLC (DBM, B3 stable), which is entirely owned by
the government, remain, including a JPY30 billion ($231 million)
government-guaranteed samurai bond due in December 2023 and a $500
million bond maturing in October 2023. Funding for the samurai bond
has been secured by DBM. However, Moody's expects that ongoing
financial difficulties linked to DBM's high loan loss rates on
problem assets indicate a strong likelihood that government support
will be required to meet at least part of DBM's October 2023 bond
maturity, even though the bond is not backed by a government
guarantee.
Under these assumptions, Moody's estimates the sovereign's gross
borrowing requirements at 12.8% of GDP in 2023, which will entail
the government seeking additional financing for the year,
potentially from market sources. While global funding conditions
remain tight, Mongolia's recent bond offering demonstrates a level
of market access that supplements other funding sources, such as
those supported by its close engagement with international
financial institutions.
As a result, Moody's estimates foreign exchange reserves will
remain broadly stable at around $3.1 billion at the end of 2023
from $2.9 billion in December 2022. Coupled with the extended
repayment schedule, this will result in Moody's External
Vulnerability Indicator (EVI), which measures the ratio of maturing
external debt to reserves, at 227% in 2023 and 211% in 2024.
Although reserve adequacy has stabilized, Moody's assesses that
Mongolia's EVI remains a credit constraint at these levels.
Continued pressures on the exchange rate and still high inflation
driven by core food and energy prices, which has not alleviated
even after the debt refinancing exercise, are also reflective of
these pressures.
RATIONALE FOR THE B3 RATING
MINING PROJECTS, CONSTRUCTION ON INFRASTRUCTURE SUPPORT GROWTH
POTENTIAL
Mongolia's potential growth continues to represent an underlying
credit strength. Moody's estimates real GDP growth will increase to
4.5% year-on-year in 2023 from 3.7% in 2022, before gradually
rising toward a potential rate of 6-7%. Potential growth remains
well supported by demand for copper, which will benefit from
ongoing global trends toward decarbonization including the adoption
of copper-rich battery electric vehicles.
After a decade of operations, ongoing underground mining operations
at Oyu Tolgoi will reach sustainable production of high-grade ore
by the first quarter of 2023. Coal production is also likely to
remain strong for the near to medium term, supported by demand from
China, mainly for steel-making with limited substitution risk. Coal
exports will be supplemented by the increase in rail connectivity
under the recently operational rail infrastructure projects.
DEBT BURDEN WILL STABILIZE, ALTHOUGH CONTINGENT LIABILITY RISKS
REMAIN
Strong nominal GDP growth and revenue performance will support
stabilization in fiscal and debt metrics. Fiscal performance
markedly improved in 2022 on the back of stronger mineral revenue
growth, resulting in the deficit consolidating materially to 1.8%
of GDP from 6.5% in 2021. This reverses a sharp widening in the
fiscal deficit and a build-up in the debt burden during the
pandemic years that unwound fiscal consolidation achieved between
2017 and 2019.
Some support measures, such as the Child Money Program, have acted
as a permanent drag on fiscal buffers. However, although Moody's
expects the fiscal deficit to widen from recent low levels in 2023
and 2024 to around 5-6% of GDP, strong nominal GDP growth will
likely result in the debt ratio consolidating to 56.3% of GDP in
2023, from 60.4% in 2022, with a gradual downward drift over the
forecast horizon. This is in line with the B-median of 56% in
2023.
Fiscal strength remains a significant credit constraint for
Mongolia. With nearly all the government debt in foreign currency,
Mongolia's fiscal strength and credit profile are highly vulnerable
to a significant depreciation of the tugrik. Moreover, Moody's
assesses that contingent liability risks from state-owned
enterprise (SOE) debt will remain material. Recent offtake barter
agreements by Erdenes Tavan Tolgoi (the state-owned mining company)
illustrate the risks of such liabilities crystallizing on the
government's balance sheet, which are magnified by weak governance
structures around SOEs.
INSTITUTIONAL WEAKNESSES EXACERBATE VULNERABILITIES TO COMMODITY
PRICE CYCLES
Also incorporated in the B3 rating are generally loose,
pro-cyclical policies. Although debt and liability management has
significantly improved over the years, a tendency toward
expansionary fiscal policies remains and is typically heightened
during commodity price upswings. In addition, despite some of the
laws instituted over past years to strengthen central bank
independence, the use of quasi-fiscal exercises still prevails in
some respects, particularly in the form of the subsidized mortgage
program. Governance and supervisory capacity around state-owned
enterprises is also weak – as evidenced by large loan losses at
DBM. Finally, recent allegations around 'coal theft' indicate that
the heavy concentration of natural resources in the economy,
coupled with weaknesses in the institutional framework can manifest
in corruption.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS
Mongolia's ESG Credit Impact Score is highly negative (CIS-4),
driven by a high exposure to environmental risks, a moderately
negative social risk issuer profile score, and a weak governance
profile. A high government debt burden and other immediate
liquidity pressures constrain the sovereign's financial capacity to
respond to environmental and social risks.
Mongolia's exposure to environmental risks is highly negative (E-4
issuer profile score), related to an economy that is highly
dependent on the production and exports of hydrocarbons, with
implications for waste and pollution levels. Mongolia is also
vulnerable to water scarcity driven by mineral extraction,
deforestation, and desertification.
Exposure to social risks is moderately negative (S-3 issuer profile
score). The uneven distribution of incomes, is balanced by a young
population coupled with a strong social safety net that has
enhanced the provision of health and education benefits.
Mongolia has a highly negative governance profile score (G-4 issuer
profile) reflecting weak executive institutions and policy
effectiveness against ongoing structural reforms.
GDP per capita (PPP basis, US$): 12,585 (2021) (also known as Per
Capita Income)
Real GDP growth (% change): 1.6% (2021) (also known as GDP Growth)
Inflation Rate (CPI, % change Dec/Dec): 13.8% (2021)
Gen. Gov. Financial Balance/GDP: -6.5% (2021) (also known as Fiscal
Balance)
Current Account Balance/GDP: -13.4% (2021) (also known as External
Balance)
External debt/GDP: 215.4% (2021)
Economic resiliency: b1
Default history: No default events (on bonds or loans) have been
recorded since 1983.
On February 09, 2023, a rating committee was called to discuss the
rating of the Mongolia, Government of. The main points raised
during the discussion were: The issuer's institutions and
governance strength, have materially decreased. The issuer's fiscal
or financial strength, including its debt profile, has not
materially changed. The issuer's susceptibility to event risks has
not materially changed.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
FACTORS THAT COULD LEAD TO AN UPGRADE
The rating would likely be upgraded upon evidence of a sustained
build-up in the foreign exchange liquidity buffer supported by
non-debt creating inflows, that alleviate external liquidity risks
from sizeable debt obligations. A consistently falling debt burden
accompanied by steady improvements in debt affordability would
alleviate fiscal constraints and drive upward rating momentum.
These indications would likely relate to improvements in the
management of domestic public finances, containing the government's
funding requirements and the economy's external financing needs.
Efforts towards gradually diversifying the economy away from its
reliance on commodities that reduce growth volatility and
susceptibility to boom-bust economic cycles would also be credit
positive.
FACTORS THAT COULD LEAD TO A DOWNGRADE
A rating downgrade could transpire from widening gross borrowing
requirements significantly above Moody's baseline assumptions,
and/or rising government liquidity risks that point to difficulties
in meeting these borrowing needs. Persistent external financing
gaps that threaten macroeconomic stability would also exert
downward rating pressures. A sustained shock to growth, for
instance through the derailment of large mining projects, would
also be a trigger for downward rating action.
The principal methodology used in these ratings was Sovereigns
published in November 2022.
=====================
N E W Z E A L A N D
=====================
ACME PROJECTS: Court to Hear Wind-Up Petition on Feb. 24
--------------------------------------------------------
A petition to wind up the operations of Acme Projects Limited will
be heard before the High Court at Auckland on Feb. 24, 2023, at
10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Sept. 28, 2022.
The Petitioner's solicitor is:
Cloete Van Der Merwe
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
JACKSCO CIVIL: Liquidators Seize Porsche Race Care
--------------------------------------------------
Stuff.co.nz reports that Jacksco Civil Ltd, a construction company
that went bust in late January owing nearly NZD9 million to
creditors, has had a Porsche race car seized by liquidators.
According to Stuff, liquidator Steve Lawrence confirmed the car,
which had been identified as a Porsche Cayman GT4 Clubsport, and
which was sign written with the company's colours and logo, had
been seized by PKF Corporate Recovery & Insolvency as it sought to
recoup money to repay creditors.
"We have secured it and taken appropriate steps," he said.
Three other companies related to Jacksco Civil Ltd have also gone
into liquidation recently, including the parent holding company and
Jacksco Ltd, which supplied machinery, and had liquidators assigned
on the same day as Jacksco Civil Ltd, on January 27.
Stuff relates that the first liquidators report into Jacksco Civil
stated Covid-19 and recent bad weather contributed to the company's
failure, and prior to being taken down, the company's website said
it had more than 100 employees.
Mr. Lawrence was not able to say which company owned the car, or
how much the car was worth.
"We are still looking into which entity purchased it," the report
quotes Mr. Lawrence as saying.
He said he understood the car was bought for advertising and
marketing opportunities.
Images posted on Facebook on June 15 (about seven months before the
company was put in liquidation) by the sign writers show the names
of the company's managing director, Simon Jacks, and general
manager, Adrian Warick, were written on the side windows.
A spokesperson for GT New Zealand said the car did not race in its
series, and a spokesperson for the Pirelli Porsche series also said
the club was not aware of the team, the report relays.
Mr. Lawrence did not know whether the car had ever been entered
into a race series.
A spokesperson for Porsche said the vehicle was for racing, and was
not road legal.
"Unfortunately we cannot provide an estimate of its value as these
types of vehicles tend to be traded privately or directly between
owners and not via the official Porsche centres," the spokesperson
said.
A similar model made for use on public roads was listed on Trade Me
with an asking price of NZD125,000.
The first liquidators report suggests Jacksco Civil owed ASB more
than NZD5.4 million, owed Inland Revenue more than NZD132,000, and
owed unsecured creditors over NZD422,000, Stuff discloses.
Jacksco Civil was estimated to have NZD3.7 million in assets at the
time of liquidation, which did not include the value of materials,
which was not yet known.
Jacksco Ltd, which also owned a civil construction plant, was
estimated to have assets of NZD2.15 million, although a large chunk
of this was in the form of a loan receivable from Jacksco Civil,
Stuff notes.
The company was estimated to have more than NZD5.95 million in
motor vehicles, machinery, portable buildings and specialised
equipment, although these were secured by the way of a general
security agreement.
The company owed ASB more than NZD5.4 million, owed IR more than
NZD132,000, and owed unsecured creditors over NZD422,000, adds
Stuff.
Jacksco Civil Ltd was an Auckland-based construction firm and
building equipment supplier.
Jacksco Civil Limited and Jacksco Limited commenced wind-up
proceedings on Jan. 27, 2022.
KRUMBLED FOODS: Court to Hear Wind-Up Petition on March 24
----------------------------------------------------------
A petition to wind up the operations of Krumbled Foods NZ Limited
will be heard before the High Court at Auckland on March 24, 2023,
at 10:00 a.m.
Pead Limited filed the petition against the company on Dec. 8,
2022.
The Petitioner's solicitor is:
Guy Manning Tompkins
Nightingale Paton Limited
Geyser Building Level 3
Suite 305, 100 Parnell Road
Parnell
Auckland 1052
NEW ZEALAND MANUKA: Thomas Lee Rodewald Appointed as Receiver
-------------------------------------------------------------
Thomas Lee Rodewald of Rodewald Consulting on Feb. 8, 2023, was
appointed as receiver of New Zealand Manuka Apiculture Limited, New
Zealand Manuka Apiculture Holding Limited and Tao Pan.
The receiver may be reached at:
Thomas Lee Rodewald
Rodewald Consulting Limited
Level 1, The Hub
525 Cameron Road
PO Box 15543
Tauranga 3144
NITRAME LIMITED: Court to Hear Wind-Up Petition on Feb. 24
----------------------------------------------------------
A petition to wind up the operations of Nitrame Limited will be
heard before the High Court at Auckland on Feb. 24, 2023, at 10:45
a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Aug. 1, 2022.
The Petitioner's solicitor is:
Cloete Van Der Merwe
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
REDCURRENT: Homeware Retailer Placed Into Liquidation
-----------------------------------------------------
Susan Edmunds at Stuff.co.nz reports that homeware retailer
Redcurrent has been put into liquidation after what its director
says has been a difficult few years.
EY insolvency practitioners Larissa Logan and Rhys Cain have been
appointed liquidators of the company, Stuff discloses.
According to the report, Mr. Cain said the Auckland and
Christchurch shops, and the online store, would remain open through
the early stages of the liquidation.
The Queenstown shop had been scheduled to close on February 28 and
that was not expected to change. The Wellington and Havelock North
shops would close immediately.
"Redcurrent is an iconic brand in the New Zealand quality homeware
market with a 25 year track record and loyal customer base. We are
seeking urgent expressions of interest for the business assets and
working closely with the management team to quickly establish
options for a way forward for the business, but in the meantime
both the online business and the stores will be trading stock at
attractive sale prices for customers," Stuff quotes Mr. Cain as
saying.
Director Rebecca Kain was working with the liquidators to achieve
the best outcome for staff, customers and suppliers, the
liquidators said.
She said the last few years had been difficult in Redcurrent’s
market and Covid had a lingering effect, Stuff relays.
"After working our hardest to counter these headwinds we recognise
that the chosen path is the best course of action, as hard as that
is for all concerned."
In May 2020, Ms. Kain was quoted in media as saying she had lost an
estimated NZD1 million in turnover in six weeks due to Covid-19 and
was on a rent strike, Stuff recalls.
Redcurrent is a home & lifestyle accessories retailer with stores
across New Zealand. Redcurrent has 23 staff.
SOUTHFORT COMMERCIAL: Court to Hear Wind-Up Petition on March 13
----------------------------------------------------------------
A petition to wind up the operations of Southfort Commercial
Limited will be heard before the High Court at Hamilton on March
13, 2023, at 10:45 a.m.
Cambridge Steel Fabricators and Engineers Limited filed the
petition against the company on Jan. 11, 2023.
The Petitioner's solicitor is:
Lisa Ware
Lewis Lawyers
corner of Dick and Alpha Streets
Cambridge
=================
S I N G A P O R E
=================
DELTA OFFSHORE: Court to Hear Judicial Management Bid on Feb. 23
----------------------------------------------------------------
A petition to place the operations of Delta Offshore Energy Pte Ltd
under the judicial management of judicial managers will be heard
before the High Court of Singapore on Feb. 23, 2023, at 10:00 a.m.
Gulf International Holding Pte. Ltd. filed the petition against the
company on Dec. 13, 2022.
The Petitioner's solicitors are:
Wong & Leow LLC
8 Marina Boulevard
#05-01 Marina Bay Financial Centre Tower 1
Singapore 018981
SGPEST PTE: Court to Hear Wind-Up Petition on March 3
-----------------------------------------------------
A petition to wind up the operations of SGPest Pte Ltd will be
heard before the High Court of Singapore on March 3, 2023, at 10:00
a.m.
Maybank Singapore Limited filed the petition against the company on
Feb. 8, 2023.
The Petitioner's solicitors are:
M/s Advent Law Corporation
111 North Bridge Road
#25-03 Peninsula Plaza
Singapore 179098
XYPHER PTE: Court Enters Wind-Up Order
--------------------------------------
The High Court of Singapore entered an order on Feb. 10, 2023, to
wind up the operations of Xypher Pte. Ltd.
Maybank Singapore Limited filed the petition against the company.
The company's liquidator is:
Gary Loh Weng Fatt
c/o BDO Advisory Pte. Ltd.
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
ZILINGO PTE: Parliament Member Asks re EDBI and Temasek Losses
--------------------------------------------------------------
The Online Citizen reports that on Feb. 7, non-constituency Member
of Parliament Leong Mun Wai asked the government with regard to the
financial losses suffered by EDBI and Temasek in the recent
liquidation of Zilingo, a high-profile online fashion start-up
started by Ankiti Bose, a resident in Singapore.
The Online Citizen relates that Mr. Chee Hong Tat, the Senior
Minister of State for Finance, replied to Mr. Leong, acknowledging
that both EDBI and Temasek did invest in Zilingo, with EDBI in 2018
and Temasek in 2020.
"These investment decisions were made independently by the two
entities," the report quotes Mr. Chee as saying.
"EDBI and Temasek typically do not comment on their investments in
specific companies, or the performance of these individual
investments. The Government's approach is to review the overall
performance of EDBI's and Temasek's portfolios, rather than the
performance of specific investments, to ensure that they are
meeting their respective investment mandates."
In other words, the government would not be commenting on the
financial losses suffered by EDBI and Temasek in Zilingo,
side-stepping Mr. Leong's questions, The Online Citizen says.
However, Mr. Chee said that EDBI and Temasek do recognise the
inherent risks of investing in startups and do take steps to
mitigate these risks.
"Both entities follow industry practice to assess financial and
corporate governance risks, such as having a structured due
diligence process and engaging the management of investee companies
to monitor their business strategy and performance," he said.
The Online Citizen notes Mr. Leong followed up with a supplementary
question, "Given the recent events, whether the Temasek and EDB,
the review, their due diligence processes, especially when it comes
to charismatic founders and whether they plan to engage founders
and the board more regularly to ensure good governance."
In response, Mr. Chee said, "I think we have explained this both in
the House and also on other occasions, that for them to say, for
example, they do have a process to assess the risk of the various
companies that are invested and they will also, as part of this
process, engage the board and the management of these companies
regularly and for the process to work well."
"I think it's important, and I hope Mr. Leong agrees with me on
this point, that we have to pay attention to what is the
performance of the overall portfolio and not just on specific
investments, because on specific investments there will be some
that will make money and there will be some that will not make
money."
Last April, news broke that Zilingo's CEO Ankiti Bose was fired
over irregularities found in her company's accounting, recalls The
Online Citizen.
"Following an investigation led by an independent forensics firm
that was commissioned to look into complaints of serious financial
irregularities, the company has decided to terminate Ms Ankiti
Bose's employment with cause, and reserves the right to pursue
appropriate legal action," the company issued a public statement
last May.
During fundraising last year, investors began questioning its
finances as part of the due diligence process, the report relates.
It led to Temasek and Sequoia Capital starting an internal
investigation into the financial practices of the company. It was
found that, in fact, the company had not filed any annual financial
returns since 2019, according to the report.
Investigators also questioned the way Zilingo had accounted for
transactions and revenue. When the fracas started, Temasek pulled
back one of its staff who was sitting on the board of Zilingo.
In addition to questions about Zilingo's accounting practices, it
was found that payments to several service providers of more than
US$7 million were quietly signed by Ms. Bose without the knowledge
of other senior executives. The payments were said to have gone to
about five IT and consulting firms.
And according to insiders, it wasn't clear what services they
delivered, the report states. The investigators did not identify
whether there were links between the Zilingo payments and the CEO.
Such a task would require access to bank accounts, which was beyond
the scope of the forensic investigation led by the internally
appointed investigating team.
Still, despite Mr. Chee's assurance that EDBI and Temasek do
"engage" the management of investee companies to monitor their
performance, somehow they weren't able to spot the "serious
financial irregularities" in Zilingo until it was too late, The
Online Citizen adds.
Mr. Aaron Loh Cheng Lee and Ms. Ee Meng Yen Angela of EY Corporate
Advisors were appointed as provisional liquidators of Zilingo Pte
Ltd on Jan. 20, 2023.
=================
S R I L A N K A
=================
BANK OF CEYLON: Fitch Hikes LongTerm Foreign-Currency IDR to 'CC'
-----------------------------------------------------------------
Fitch Ratings has upgraded Bank of Ceylon's (BOC) Long-Term
Foreign-Currency Issuer Default Rating (IDR) to 'CC' from 'RD'
(Restricted Default). The rating does not carry an Outlook because
of the high volatility at this rating level, in line with Fitch's
rating definitions.
At the same time, Fitch has also upgraded BOC's Viability Rating
(VR) to 'cc' from 'f' and its Short-Term IDR to 'C' from 'RD' and
affirmed BOC's Government Support Rating of 'no support' (ns).
BOC's Long-Term Local-Currency IDR of 'CCC-'/Rating Watch Negative
(RWN) and National Long-Term Rating of 'A(lka)'/RWN was not
considered in this review.
KEY RATING DRIVERS
Foreign-Currency Overdues Met: The upgrade of BOC's VR and its
Foreign-Currency and Short-Term IDRs reflects BOC's improved
foreign-currency liquidity position since June 2022, which has
enabled the bank to become current on its foreign-currency
obligations to non-government creditors. That said, the bank's
foreign-currency funding and liquidity profile remain stretched,
with inflow of foreign currency being mostly limited to remittances
and export proceeds. The bank's access to foreign-currency funding
remains constrained by the weakened credit profile of the Sri Lanka
sovereign (RD).
The bank's funding and liquidity score of 'cc' also reflects its
tight local-currency funding and liquidity position, which is
currently more manageable than its foreign-currency position,
supported by BOC's strong domestic franchise and its ability to
access liquidity from the central bank.
Heightened Risks to OE: The current operating environment (OE)
score of 'ccc-'/negative reflects its view that a probable default
on the sovereign's domestic debt and ensuing risks to the broader
economic environment could exacerbate risks to banks' already
stressed credit profiles. This follows the sovereign's default on
foreign-currency instruments, and would further hinder banks'
operational flexibility. The negative outlook reflects downside
risks to OE stemming from a significant deterioration in the
macroeconomic environment.
Solvency Under Pressure: Fitch has maintained BOC's capitalisation
and leverage score at 'cc' to reflect its view that a potential
restructuring of the sovereign's domestic debt, in addition to a
possible haircut on foreign-currency securities, could have a
significant effect on the bank's solvency. This takes into account
its large holdings of sovereign securities of nearly eight times of
its common equity Tier 1 (CET1) capital at end-3Q22. The bank could
then require recapitalisation to restore viability in the absence
of further regulatory forbearance.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
Fitch would downgrade BOC's VR and IDRs if it perceives an
increased likelihood that the bank would default on or seek a
restructure of its senior obligations to non-government creditors.
Potential triggers that could lead to a downgrade include:
- funding stress that impedes the bank's repayment ability in
foreign currency
- significant banking-sector intervention by authorities that
constrain the bank's ability to service its foreign-currency
obligations
- a temporary negotiated waiver or standstill agreement following a
payment default on a large foreign-currency financial obligation
- Fitch's belief that the bank has entered into a grace or cure
period following non-payment of a large foreign-currency financial
obligation
- a reduction in CET1 below the regulatory minimum (4.5% without
any buffers), even if there is regulatory forbearance regarding
such a shortfall.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
Fitch believes positive rating action is unlikely in the near term,
given the sovereign's weak credit profile, the bank's strong
linkage to the sovereign, and the broader challenging economic
conditions.
State Support Unlikely: The Government Support Rating of 'ns'
reflects its assessment that there is no reasonable assumption of
government support being forthcoming.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
The rating is already at its lowest level and thus has no downside
risk.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
The Government Support Rating is constrained by the sovereign
rating. An upward revision is possible, provided the sovereign's
ability to provide support significantly improves. However, this
appears unlikely in the near to medium term.
VR ADJUSTMENTS
The operating environment score of 'ccc-' is below the 'b' category
implied score due to the following adjustment reason: sovereign
rating (negative).
The business profile score of 'ccc-' is below the 'b' category
implied score due to the following adjustment reason: business
model (negative).
BOC has a 1.78% equity stake in Fitch Ratings Lanka Ltd. No
shareholder other than Fitch, Inc. is involved in the day-to-day
rating operations of, or credit reviews undertaken by, Fitch
Ratings Lanka Ltd.
ESG CONSIDERATIONS
BOC has an ESG Relevance Score of '4' for Governance Structure due
to ownership concentration, with a 100% state shareholding and
several related-party transactions with the state and state-owned
entities, which has a negative impact on the credit profile and is
relevant to the rating in conjunction with other factors.
BOC has an ESG Relevance Score of '4' for Financial Transparency.
It reflects its view that the recent regulatory forbearance
measures announced by the Central Bank of Sri Lanka could distort
the true solvency and liquidity position of the bank, thereby
limiting financial transparency.
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
Entity/Debt Rating Prior
----------- ------ -----
Bank of Ceylon LT IDR CC Upgrade RD
ST IDR C Upgrade RD
Viability cc Upgrade f
Government Support ns Affirmed ns
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
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Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2023. All rights reserved. ISSN: 1520-9482.
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