/raid1/www/Hosts/bankrupt/TCRAP_Public/230224.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 24, 2023, Vol. 26, No. 41
Headlines
A U S T R A L I A
BALLISTIC BEER: Second Creditors' Meeting Set for March 1
CDC PLUMBING: Goes Into Liquidation Owing More Than AUD7MM
CRIMSON BOND 2021-1P: S&P Affirms B (sf) Rating on Class F Notes
MORTGAGE HOUSE 2023-1: S&P Assigns Prelim B (sf) Rating to F Notes
S & D HARDING: First Creditors' Meeting Set for March 2
SECURITY SPECIALISTS: First Creditors' Meeting Set for March 3
SOUTHERN WATERS: First Creditors' Meeting Set for March 3
STAR ENTERTAINMENT: Posts AUD1.26B Loss for H1 of FY2023
SUNBUSTER CARAVANS: Second Creditors' Meeting Set for March 1
TRITON BOND 2023-1: S&P Assigns B (sf) Rating to Class F Notes
C H I N A
[*] CHINA: State-Owned Firms Sitting Out Property Rescue Program
I N D I A
A2Z INFRA: CARE Reaffirms D Rating on INR377.30cr ST Loan
ANJANEYA JEWELLERY: CRISIL Reaffirms B Rating on INR25cr Loan
ANUGRAH STOCK: CARE Keeps D Debt Ratings in Not Cooperating
BAJRANG AGRO: CARE Keeps D Debt Rating in Not Cooperating Category
BALA BALAJI: CARE Keeps D Debt Rating in Not Cooperating Category
BMI WHOLESALE: CARE Lowers Rating on INR11.33cr LT Loan to D
BRAHMMAS AGRO: CARE Lowers Rating on INR18cr LT Loan to C
CFI VENTURES: CARE Keeps C Debt Rating in Not Cooperating
COLD CARE: CARE Keeps C Debt Rating in Not Cooperating Category
INDROYAL PROPERTIES: CARE Keeps D Debt Rating in Not Cooperating
INSOLEXO PRIVATE: CARE Keeps D Debt Rating in Not Cooperating
JAY AMBE: CRISIL Assigns B+ Rating to INR6cr Cash Credit
M. M. INTERNATIONAL: CRISIL Cuts LT/ST Debt Ratings to D
MAANASA ENTERPRISES: CARE Lowers Rating on INR11.60cr Loan to D
MACRO VENTURES: CARE Keeps D Debt Rating in Not Cooperating
MZ FOOD: CRISIL Withdraws D Rating on INR4.38cr Term Loan
PRASAD AGRO: CARE Keeps D Debt Rating in Not Cooperating
R L AGRO: CRISIL Keeps D Debt Ratings in Not Cooperating
RAMS ASSORTED: CARE Moves D Debt Ratings to Not Cooperating
RANA MILK: CARE Keeps D Debt Rating in Not Cooperating Category
RANGA PARTICLE: CARE Lowers Rating on INR99.50CR LT Loan to D
RM DAIRY: CARE Keeps D Debt Rating in Not Cooperating Category
RM ROCKS: CARE Keeps C Debt Rating in Not Cooperating Category
ROCKDUDE IMPEX: CRISIL Raises Rating on INR22cr Cash Loan to B
SAI EXPORT: CRISIL Lowers Rating on INR35cr Export Debt to B-
SAMVARDHANA MOTHERSON: Moody's Affirms 'Ba1' CFR, Outlook Stable
SREI GROUP: Authum Seeks Review of Appraisal Matrix in Insolvency
SUSHEEL ENGINEERS: CARE Keeps D Debt Ratings in Not Cooperating
ZEE ENTERTAINMENT: NCLT Admits Insolvency Bid Against Company
[*] INDIA: Creditors Face Haircut of 70% in Insolvency Cases
I N D O N E S I A
SAI BABUJI: CARE Keeps D Debt Rating in Not Cooperating Category
M A L A Y S I A
EA TECHNIQUE: New Party May Acquire Controlling Stake in Group
N E W Z E A L A N D
CHAOHU LIMITED: Court to Hear Wind-Up Petition on March 2
INDIGO ISLAND: Creditors' Proofs of Debt Due on March 21
LHS INTERNATIONAL: Creditors' Proofs of Debt Due on March 24
SOLID NZ: Creditors' Proofs of Debt Due on March 27
P A K I S T A N
PAKISTAN: Pledges to Pay Debt Obligation Amid Cash Crunch
S I N G A P O R E
AUSGROUP LIMITED: Court Enters Judicial Management Order
HWA HONG: Court to Hear Wind-Up Petition on March 3
LIPPO MALLS: Fitch Lowers LongTerm Issuer Default Rating to 'CCC+'
LJH CONSTRUCTION: Court Enters Wind-Up Order
SMART AUTOMOBILE: Court to Hear Wind-Up Petition on March 3
TENGAH ENGINEERING: Court Enters Wind-Up Order
- - - - -
=================
A U S T R A L I A
=================
BALLISTIC BEER: Second Creditors' Meeting Set for March 1
---------------------------------------------------------
A second meeting of creditors in the proceedings of Ballistic Beer
Company Pty Ltd and Ballistic Springfield Pty Ltd has been set for
March 1, 2023 at 10:00 a.m. and 11:30 a.m. respectively, at the
offices of Christie Conference Centre at Level 1, 320 Adelaide
Street in Brisbane.
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. 28, 2023 at 4:00 p.m.
Jason Glenn Stone and Paul Anthony Allen of PKF Melbourne were
appointed as administrators of the company on Jan. 24, 2023.
CDC PLUMBING: Goes Into Liquidation Owing More Than AUD7MM
----------------------------------------------------------
9News.com.au reports that a major Victorian plumbing contractor has
collapsed while owing more than AUD7 million, causing 197 staff
members to lose their jobs.
CDC Plumbing and Drainage has gone into liquidation after almost 40
years of operating as "one of the largest privately-owned plumbing
contractors in Australia".
FTI Consulting was appointed as liquidators for CDC Investment
Group and its related entity, Aerolink Contractors, on February 6,
when the 197 employees discovered they were being made redundant,
9News.com.au relates.
Liquidator Paul Harlond told 9News.com.au the companies owed
creditors more than AUD7 million, with one trade creditor owed more
than AUD2 million.
About 33 projects are impacted by the companies' closures.
According to the report, Mr. Harlond said his firm was "currently
calculating the entitlements owed to the employees so they can make
a claim under the Federal Government's Fair Entitlements Guarantee
Scheme".
He said it was believed COVID-19 lockdowns and increasing costs had
led to the companies' downfall.
"While our investigations are ongoing, advice from the directors
indicated they had no access to JobKeeper during COVID lockdowns
and that, combined with continuing losses on key contracts due to
industry pressures and increasing costs are the main factors
leading to the liquidation," the report quotes Mr. Harlond as
saying. "We are in the process of realising all the assets of the
companies and will shortly begin our statutory investigations."
CDC Plumbing and Drainage has advertised itself as having delivered
more than AUD1.8 billion in plumbing, hydraulic and drainage
contracts to landmark projects.
The company was established in 1984.
CRIMSON BOND 2021-1P: S&P Affirms B (sf) Rating on Class F Notes
----------------------------------------------------------------
S&P Global Ratings affirmed its ratings on six classes of
residential mortgage-backed securities (RMBS) issued by Perpetual
Corporate Trust Ltd. as trustee for Crimson Bond Trust 2021-1P.
Crimson Bond Trust 2021-1P is a securitization of prime residential
mortgage loans originated by BC Securities Pty Ltd.
S&P said, "The rating affirmations reflect our view that the
transaction has been performing in line with our expectations. The
underlying collateral portfolio predominantly comprises residential
mortgage loans to borrowers who are nonresidents of Australia. As
of Dec. 31, 2022, the portfolio has a pool factor of 71.2%, with a
current weighted-average loan-to-value ratio of 59.4% and
weighted-average seasoning of 26.3 months. There have been no
losses to date.
"The credit support available to each class of rated notes, which
has increased since closing, is sufficient to withstand the
stresses we apply at each respective rating level. This credit
support comprises subordination from junior classes of notes,
excess spread, if any, and, should certain triggers be met, a loss
reserve funded by excess spread. The various mechanisms to support
liquidity within the transaction include an amortizing liquidity
reserve and principal draws.
"Factors constraining our ratings reflect the unique features of
the portfolio. This includes that the concentration of borrowers
from a single country--China--remains high, at about 70%. Such
concentration exposes the transaction to events or policies that
could disrupt the flow of funds between countries. In our cash-flow
analysis, we applied additional compressed default curves to
simulate a possible concentrated disruption in cash flows to the
trust. Furthermore, compared with typical prime Australian RMBS,
the underlying security property in this portfolio is more
concentrated (42.6%) in inner city postcodes."
Ratings Affirmed
Crimson Bond Trust 2021-1P
Class A1-AU: AAA (sf)
Class B: AA (sf)
Class C: A (sf)
Class D: BBB (sf)
Class E: BB (sf)
Class F: B (sf)
Class G: Not rated
MORTGAGE HOUSE 2023-1: S&P Assigns Prelim B (sf) Rating to F Notes
------------------------------------------------------------------
S&P Global Ratings assigned its preliminary ratings to eight
classes of prime residential mortgage-backed securities (RMBS) to
be issued by Perpetual Trustee Co. Ltd. as trustee for Mortgage
House Capital Mortgage Trust No.1 - Mortgage House RMBS Osmium
Series 2023-1. Mortgage House RMBS Osmium Series 2023-1 is a
securitization of residential mortgages originated by Mortgage
House of Australia Pty Ltd.
The preliminary ratings reflect:
-- S&P's view of the credit risk of the underlying collateral
portfolio, including its view that the credit support provided to
each class of notes is commensurate with the ratings assigned.
Credit support for the rated notes comprises note subordination,
lenders' mortgage insurance on 3.4% of the loans in the portfolio,
and excess spread.
-- The underwriting standard and centralized approval process of
the seller, Mortgage House of Australia.
-- S&P's expectation that the various mechanisms to support
liquidity within the transaction, including a liquidity facility
equal to 1.5% of the outstanding balance of the notes, principal
draws, and a loss reserve that builds from excess spread, are
sufficient under its stress assumptions.
The benefit of a fixed- to floating-rate interest-rate swap
provided by National Australia Bank Ltd. to hedge the mismatch
between receipts from any fixed-rate mortgage loans and the
variable-rate RMBS.
Preliminary Ratings Assigned
Mortgage House Capital Mortgage Trust No.1 –
Mortgage House RMBS Osmium Series 2023-1
Class A1-S, A$100.00 million: AAA (sf)
Class A1-L, A$200.00 million: AAA (sf)
Class A2, A$60.00 million: AAA (sf)
Class B, A$15.60 million: AA (sf)
Class C, A$9.60 million: A (sf)
Class D, A$6.40 million: BBB (sf)
Class E, A$4.00 million: BB (sf)
Class F, A$2.40 million: B (sf)
Class G, A$2.00 million: Not rated
S & D HARDING: First Creditors' Meeting Set for March 2
-------------------------------------------------------
A first meeting of the creditors in the proceedings of S & D
Harding Pty Ltd will be held on March 2, 2023, at 10:00 a.m. at
Suite 38, 3 Box Road in Caringbah and via teleconference
facilities.
Darren John Vardy of Insolvency Options was appointed as
administrator of the company on Feb. 21, 2023.
SECURITY SPECIALISTS: First Creditors' Meeting Set for March 3
--------------------------------------------------------------
A first meeting of the creditors in the proceedings of Security
Specialists Australia Pty Ltd will be held on March 3, 2023, at
10:00 a.m. via Microsoft Teams.
Atle Crowe-Maxwell of DBA Advisory was appointed as administrator
of the company on Feb. 21, 2023.
SOUTHERN WATERS: First Creditors' Meeting Set for March 3
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Southern
Waters Hydraulics Pty. Ltd. will be held on March 3, 2023, at 11:00
a.m. via virtual meeting on Zoom only.
John Chand and Patrick Loi of Greengate Advisory NSW were appointed
as administrators of the company on Feb. 22, 2023.
STAR ENTERTAINMENT: Posts AUD1.26B Loss for H1 of FY2023
--------------------------------------------------------
ABC News reports that the Star Entertainment Group has posted a
AUD1.26 billion loss for the first half of the 2023 financial year,
driven by fines and major losses at its Sydney casino.
That's compared to a AUD74 million loss during the same period a
year earlier.
Half-yearly financial results, released to the ASX on Feb. 23,
included AUD1.3 billion in what the company describes as one-off
costs, like the expected changes to taxes, AUD350 million in fines
and the expense of ongoing reviews and new systems to fix problems,
the ABC relates.
That "one-off" figure could have been much bigger, because the sale
of two properties counted against it.
According to the ABC, the major factor behind the loss is AUD800
million in equity raising to repay debt and increase liquidity.
Domestic revenue was also down 14 per cent compared to pre-pandemic
levels at Star's Sydney casino.
The report said the poor performance is reflective of increasingly
restrictive operational requirements and amendments to the state's
Casino Control Act.
It also mentions increased competition for its Sydney casino from
the opening of Crown Sydney, at Barangaroo, the ABC relays.
The ABC adds that Star said it was urgently working on regaining
suitability to hold casino licences in NSW and Queensland, after
reviews into money laundering, fraud and criminal activity.
Its licence in NSW has been suspended and it was fined AUD100
million, although, the company was still able to keep its gaming
floor open as long as it appointed a new manager to oversee its
gambling business, the ABC notes.
In Queensland, the company was last year fined AUD100 million and
given a year to show why its licence to operate casinos shouldn't
be suspended.
Financial statements show Star Sydney has lost almost AUD1 billion
as a result of regulatory changes and fines, the ABC discloses.
"The Sydney property is in a state of significant uncertainty," the
financial statements read.
"Recent regulatory changes have increased compliance costs and the
Group has paused international and domestic rebate business.
"Further, proposed increases to casino duty rates could materially
alter the profitability of the business.
"In combination, these factors have reduced the valuation of the
Sydney cash generating unit, requiring an impairment of AUD988.4
million to be recognised at December 31, 2022."
The ABC notes that financial crimes agency AUSTRAC has commenced
civil penalty proceedings against Star Entertainment Group over
breaches of anti-money laundering laws, which could see the company
fined billions more.
Managing director Robbie Cooke has previously said the group was
"transforming" its culture and business.
Meanwhile domestic revenue for The Star Gold Coast is up 30 per
cent, a record for the venue, and Treasury Brisbane posted a 9 per
cent increase on the same measure, the ABC adds.
About The Star Entertainment
The Star Entertainment Group Limited (ASX:SGR) --
https://www.starentertainmentgroup.com.au/ -- is an Australia-based
company that provides gaming, entertainment and hospitality
services. The Company operates The Star Sydney (Sydney), The Star
Gold Coast (Gold Coast) and Treasury Brisbane (Brisbane). The
Company operates through three segments: Sydney, Gold Coast and
Brisbane. Sydney segment consists of The Star Sydney's casino
operations, including hotels, restaurants, bars and other
entertainment facilities. Gold Coast segment consists of The Star
Gold Coast's casino operations, including hotels, theatre,
restaurants, bars and other entertainment facilities. Brisbane
segment includes Treasury's casino operations, including hotel,
restaurants and bars. The Company also manages the Gold Coast
Convention and Exhibition Centre on behalf of the Queensland
Government. The Company also owns Broadbeach Island on which the
Gold Coast casino is located.
SUNBUSTER CARAVANS: Second Creditors' Meeting Set for March 1
-------------------------------------------------------------
A second meeting of creditors in the proceedings of Sunbuster
Caravans Pty Ltd has been set for March 1, 2023 at 11:00 a.m. at
the offices of Morton & Lee Insolvency at Level 10, 388 Queen
Street in Brisbane and via virtual meeting technology.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Feb. 28, 2023 at 4:00 p.m.
Leon Lee of Morton + Lee Insolvency was appointed as administrator
of the company on Jan. 24, 2023.
TRITON BOND 2023-1: S&P Assigns B (sf) Rating to Class F Notes
--------------------------------------------------------------
S&P Global Ratings assigned its ratings to 10 classes of prime
residential mortgage-backed securities (RMBS) issued by Perpetual
Corporate Trust Ltd. as trustee for Triton Bond Trust 2023-1 Series
1.
The ratings reflect:
-- S&P's view of the credit risk of the underlying collateral
portfolio, including the fact that this is a closed portfolio,
which means no further loans will be assigned to the trust after
the closing date.
-- S&P's view that the credit support is sufficient to withstand
the stresses it applies. This credit support comprises mortgage
lenders insurance covering 12.7% of the loans in the portfolio as
well as note subordination for all rated notes.
-- S&P's expectation that the various mechanisms to support
liquidity within the transaction, including an amortizing liquidity
facility equal to 1.0% of the invested amount of all rated and
class G notes, subject to a floor of 0.10% of the initial invested
amount of all notes, principal draws, and a loss reserve that
builds from excess spread, are sufficient under its stress
assumptions to ensure timely payment of interest.
-- The extraordinary expense reserve of A$150,000, funded from day
one by Columbus Capital Pty Ltd., available to meet extraordinary
expenses. The reserve will be topped up via excess spread if
drawn.
-- The benefit of a fixed- to floating-rate interest-rate swap
provided by National Australia Bank Ltd. to hedge the mismatch
between receipts from any fixed-rate mortgage loans and the
variable-rate RMBS, should any be entered into after transaction
close.
Ratings Assigned
Triton Bond Trust 2023-1 Series 1
Class A1-MM, A$230.00 million: AAA (sf)
Class A1-AU, A$520.00 million: AAA (sf)
Class A1-4.5Y, A$100.00 million: AAA (sf)
Class A2, A$70.00 million: AAA (sf)
Class AB, A$31.50 million: AAA (sf)
Class B, A$17.00 million: AA (sf)
Class C, A$14.00 million: A (sf)
Class D, A$7.20 million: BBB (sf)
Class E, A$4.80 million: BB (sf)
Class F, A$2.40 million: B (sf)
Class G, A$3.10 million: Not rated
=========
C H I N A
=========
[*] CHINA: State-Owned Firms Sitting Out Property Rescue Program
----------------------------------------------------------------
The Wall Street Journal reports that when China's private
real-estate developers started sliding into distress more than a
year ago, the government encouraged state-owned property companies
to step in and take over their ailing peers' projects and assets.
That call has gone largely unheeded - a big reason why the
country's housing market remains in the doldrums, the Journal says.
According to the Journal, state-backed property companies have
considered and ultimately decided against acquiring a great number
of projects started by private developers. They have also largely
shunned a "merger and acquisition" bond program intended to help
them fund these deals, although some have used the program to pay
off their own debt.
That is undermining the government's hope for an orderly recovery
in the property sector - driven by market forces rather than
government bailouts - and adding to home buyers' uncertainty.
Without a market solution, the burden of completing stalled
projects could further fall on Chinese local governments, which are
already financially stretched after three years of combating the
pandemic.
Chinese officials have never made deals between state-owned and
private developers an official plank of government policy, but they
have repeatedly alluded to the idea, and most economists say it is
a government aim, the Journal says.
Many state-owned developers have analyzed hundreds of projects from
private developers and found very few that met their standards,
industry analysts said, the Journal relays. These companies prefer
to buy land directly from local governments at routine public
auctions, where prices are low thanks to the reduced private
competition.
According to the Journal, state-owned developers are reluctant
partly because they themselves have suffered from the
property-market slowdown, though not as much as their
private-sector counterparts. The country's strict zero-Covid
measures - not pulled back until December - hit consumer confidence
hard. Sales of new residential properties last year were down 28%
to a five-year low. Prices sank and new projects were left
unfinished.
"It was an industrywide squeeze from a cash-flow perspective," the
Journal quotes Kelly Chen, a senior analyst at Moody's Investors
Service, as saying. "When their main business is shrinking in
scale, every enterprise would be more cautious when it comes to
merger and acquisition opportunities."
Chinese regulators may also have been too careful with the wording
of their calls for property companies to buy assets, encouraging
only "high-quality" developers to acquire "high-quality projects,"
said Bruce Pang, chief China economist at Jones Lang LaSalle, the
Journal relays.
The Journal adds that most of the projects on sale have complicated
debt obligations or poor prospects for future returns, said Shujin
Chen, head of China financial and property equity research at
Jefferies. State-owned developers have largely opted to cherry-pick
parcels of land in premium locations such as Beijing and Guangzhou,
where the economics make more sense, the analysts said.
=========
I N D I A
=========
A2Z INFRA: CARE Reaffirms D Rating on INR377.30cr ST Loan
---------------------------------------------------------
CARE Ratings has reaffirmed ratings on certain bank facilities of
A2Z Infra Engineering Limited, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 240.97 CARE D Reaffirmed
Short Term Bank
Facilities 377.30 CARE D Reaffirmed
Rationale and key rating drivers
The rating assigned to the bank facilities of A2Z Infra Engineering
Limited continues to factor in delays in debt servicing by the
company.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Timely repayment of debt obligations for more than three months
along with improvement in liquidity position of the company.
Analytical approach: Standalone
Key weaknesses
* Ongoing delays in debt servicing: As per the audited annual
report for the FY22 and provisional report for 9MFY23, there are
on-going delays in debt servicing by the company.
Liquidity: Poor
The liquidity of the company is poor, leading to delays in debt
servicing.
Incorporated in January 2002 as A2Z Maintenance Services Private
Ltd, the company was renamed 'A2Z Maintenance & Engineering
Services Private Ltd' in June 2005. Subsequently, the company
became a public limited company in March 2010. A2Z came up with an
IPO in October 2010 and raised INR776.2 crore. The company got its
present name in December 2014 and is primarily engaged in providing
Engineering, Procurement and Construction (EPC) services in power
transmission and distribution sector.
ANJANEYA JEWELLERY: CRISIL Reaffirms B Rating on INR25cr Loan
-------------------------------------------------------------
CRISIL Ratings has reaffirmed its rating on the bank facilities of
Anjaneya Jewellery (AJ) at 'CRISIL B/Stable'
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 15 CRISIL B/Stable (Reaffirmed)
Cash Credit 25 CRISIL B/Stable (Reaffirmed)
The rating continues to reflect AJ's below average financial risk
profile because of high gearing and below average debt protection
metrics and exposure to intense competition in the jewellery retail
business. These weaknesses are partially offset by the extensive
experience of its proprietor.
Key Rating Drivers & Detailed Description
Weaknesses:
* Below-average financial risk profile: Financial risk profile is
below average because of high gearing of 2.94 times as on March 31,
2022, and below average debt protection metrics with interest
coverage of 1.14 times and net cash accruals to total debt is 1%
for FY 22.
* Exposure to intense competition: The domestic market for
manufacturing and retailing of gold jewellery in India is
characterised by a fragmented industry and intense competition
among players, leading to pressure on profitability. The firm faces
intense competition from regional, and branded players such as
Joyalukkas India Ltd, Lalitha Jewellery Mart Pvt Ltd, and Kalyan
Jewellers, which have pan India presence and enjoy better economies
of scale, apart from other regional players.
Strength:
* Proprietor's extensive experience in the jewellery business: Mr.
Venkat Rao has rich experience in gold retailing from over 2
decades. Over the years, he has developed strong insight into
consumer buying patterns and identify trends in the jewellery
designs. Looking at the strong demand for gold jewellery and in
order expand in large scale the retail showroom in Labbipet was
opened in 2005. Over the years they have significantly ramped up
the operations of the showroom. Currently, AJ is one of the reputed
gold showrooms in Vijayawada. The long and established presence
also instils an element of trust among the consumers, which is an
important factor influencing jewellery buying decision. Over the
years the proprietor has developed strong relationships with major
customers and suppliers.
Liquidity: Stretched
Bank limit utilisation is moderate at around 94.09 percent for the
past twelve months ended December 2022. Cash accruals are expected
to be over INR1-1.5 Crores which will be insufficient against term
debt obligation over the medium term. However rental income from
the properties owned by proprietor of around INR 2.50 Crores per
annum will be used to service the repayment obligations and
supports the liquidity profile of the firm to an extent.
Current ratio is healthy at 1.17 times on March 31, 2022.
Outlook: Stable
CRISIL Ratings believes that AJ will continue to benefit over the
medium term from its proprietor's extensive industry experience.
Rating Sensitivity factors
Upward factors:
* Sustenance of improvement in business performance with increase
in revenue by 20% resulting in higher cash accruals
* Improvement in gearing to less than 2.5 times
Downward factors:
* Fall in revenue by 40% resulting in decline in cash accruals
* Large debt funded capital expenditure that weakens the financial
risk profile
Set up in 2005, Anjaneya Jewellery is a proprietorship firm owned
by Mr. Venkat Rao. AJ retails gold, silver, platinum, diamond,
gemstones and studded jewellery jewellery at its showroom located
in Vijayawada, Andhra Pradesh.
ANUGRAH STOCK: CARE Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Anugrah
Stock & Broking Limited (Anugrah) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 20.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 25.00 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 March 30, 2020
placed the ratings of Anugrah under the 'issuer non-cooperating'
category as Anugrah 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. Anugrah
continues to be noncooperative despite repeated requests for
submission of information through e-mails dated January 29, 2023,
January 19, 2023 and January 9, 2023.
In line with the extant SEBI guidelines, CARE ratings have 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 bank facilities of Anugrah are denoted as
CARE D, INC.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Anugrah was incorporated in 1996, is primarily in business of
retail equity broking. The company is Mumbai based and has network
of 6 branches in states of Maharashtra, Gujarat, Rajasthan and
Andhra Pradesh. The margin financing business is also carried out
through a promoter related company and not under Anugrah. Anugrah
has a network of over 409 franchisee providing services to more
than 20207 number of clients across the country.
BAJRANG AGRO: CARE Keeps D Debt Rating in Not Cooperating Category
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Bajrang
Agro Industries (BAI) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.59 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 January 27,
2022, placed the rating(s) of BAI under the 'issuer
non-cooperating' category as BAI 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. BAI
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated December 13, 2022, December 23, 2022, January 2,
2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Wardha (Maharashtra) based BAI is a partnership firm formed by Mrs.
Vaishali Kharse and Mr. Ishwar Kharse governed by partnership deed
dated November 26, 2015. BAI is a new entrant in cotton ginning and
pressing at its processing facility located at Wardha, Maharashtra,
having an installed capacity of 900 quintals per day. The firm had
commenced its operation in February 2018.
BALA BALAJI: CARE Keeps D Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Bala Balaji
Srinivasa Poultry Complex continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 17.97 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. has been seeking information from Bala Balaji to
monitor the rating(s) vide e-mail communications dated November 3,
2022, November 15, 2022, November 23, 2022, December 2, 2022,
January 9, 2023, February 6, 2023 and numerous phone calls.
However, despite our repeated requests, the firm has not provided
the requisite information for monitoring the ratings.
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.
The rating on Bala Balaji Srinivasa Poultry Complex 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).
CARE views information availability risk as a key factor in its
assessment of credit risk.
At the time of last rating on March 30, 2022, the following were
the rating weaknesses.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Delay free track record of 90 days in servicing of debt
obligations
Analytical approach: Standalone
Key weaknesses
* On-going delays in debt servicing: As per verbal feedback from
lender, there are on-going delays interest servicing as well as
instalment payment in Term loan since February 2022 due to
liquidity stress as a result of adverse poultry market conditions
and varying prices of eggs and other material.
Liquidity: Poor
Liquidity is poor as indicated by ongoing delays in debt servicing
do cash flow mismatch from operation as a result of adverse poultry
market conditions and varying prices of eggs and other material.
Net cash flow from operating activities remained negative at
INR0.18 crore during FY21. Working capital cycle remained elongated
at 109 days during FY21 due to higher inventory period which was
due to its nature of business operations where in the company is
required to keep high inventory level of parent bird and raw
material stock to feed the birds in different growing stages and to
mitigate fluctuation in raw material prices. Further, average
utilization of its working capital limit also remained high at 98%
for past one year ended February 2022.
Fast Moving Consumer Goods Fast Moving Consumer Goods Food Products
Meat Products including Poultry Bala Balaji Srinivasa Poultry
Complex (BBSPC) was established on October 25, 2018 by Dr.
G.V.Subramaniam (Managing Partner), Mr. G.V. Subramanyam (Managing
Partner) and other family members. The firm started its commercial
operations from August 2019 onwards. BBSPC is engaged in farming of
egg, laying poultry birds (chickens) and trading of eggs, cull
birds and their manure. The firm sells its products such as eggs
and cull birds to retailers through own sales personnel and
dealers, across the southern and Kolkata region.
BMI WHOLESALE: CARE Lowers Rating on INR11.33cr LT Loan to D
------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
BMI Wholesale Trading Private Limited (BMI), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 11.33 CARE D; Revised from CARE B-;
Facilities Stable
Short Term Bank
Facilities 3.00 CARE D Revised from CARE A4
Rationale and key rating drivers
The revision in the rating assigned to the bank facilities of BMI
is due to on-going delay in servicing of debt obligation due to
stretched liquidity position.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* The entities' ability to establish a track record of timely
servicing of debt obligations with improvement in liquidity
position.
Analytical approach: Standalone
Detailed description of the key rating drivers
Key Rating Weaknesses
* On-doing delays in debt servicing: There are on-going delays in
debt servicing as the cash credit account is continuously overdrawn
for more than 30 days till date owing to non-payment due to
stretched liquidity. Further the account is classified as NPA by
the banker.
Liquidity: Poor
Liquidity is poor marked by delays in debt servicing (cash credit)
due to liquidity issues faced by the entity.
Incorporated in 2006, BMI Wholesale Trading Private Limited [BMI,
formerly known as MK Retail Private Limited] is promoted by
Prestige Brands Limited (a company wholly owned by New York based
Murjani Group). BMI is engaged in wholesale trading and marketing
of licensed products such as apparels and innerwear under the brand
'French Connection' in the Indian Territory wherein BMI has the
exclusive long-term rights for "French Connection".
BRAHMMAS AGRO: CARE Lowers Rating on INR18cr LT Loan to C
---------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Brahmmas Agro Industries Private Limited (BAIPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 18.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B+; Stable
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated December 3,
2021, placed the rating(s) of BAIPL under the 'issuer
non-cooperating' category as BAIPL 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. BAIPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated October 19, 2022, October 29,
2022, November 8, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of BAIPL have been
revised on account of non-availability of requisite information.
The ratings further consider significant decline in operating
income, accumulation of losses, leveraged capital structure and
weak debt coverage indicators during FY22 over FY21.
Brahmmas Agro Industries Pvt. Ltd (BAIPL), incorporated in August
2008, was promoted by Mr. B. Srinivasa Rao and Mr. T. Mastan Reddy.
Mr. Mastan Reddy has around four decades of experience in
extraction and refining of cotton seed oil while, Mr. B. Srinivasa
Rao has an overall experience of over a decade in the industry. The
company is engaged into processing of cotton seed for solvent
extraction & refining of cotton seed oil and manufacturing of
allied products like cotton seed hulls, cotton seed cake, linters
etc. The company has a processing plant at Vetapalemu, Prakasham
district, Andhra Pradesh with an installed capacity of 125,000 MTPA
for Cotton seed processing, 65000 MTPA for solvent extraction of
cotton seed cake and 12000 MTPA for extraction refinery.
CFI VENTURES: CARE Keeps C Debt Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of CFI
Ventures Private Limited (CVPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.00 CARE C; 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 9,
2021, placed the rating(s) of CVPL under the 'issuer
non-cooperating' category as CVPL 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. CVPL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated October 25, 2022, November 14, 2022 and February
9, 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).
Detailed description of the key rating drivers
Joshi Auto Wheels Private Limited (JAWPL) was incorporated in June
2015. The company operates a 3S facility (Sales, Spares, Service)
showroom for Nissan Motor India Private Limited (NMIPL). The
company started its operations in October-2015. The operations of
the company are managed by the directors, Mr Manish Joshi and Mrs
Bhawna Joshi. JAWPL operates as an authorized dealership of the
entire range of passenger vehicles (PV) like hatchback-Micra
Active, sedan-Sunny, SUV-Terrano, etc, for NMIPL. The showroom is
located in Industrial area, Phase-1, Chandigarh and the service
workshop is located at Plot No. 33, Phase-1, Industrial Area,
Chandigarh. The company provides NMIPL products with finance,
exchange, insurance and accessories. JAWPL has two group concerns
namely Joshi Auto Links Pvt. Ltd. (JALPT) and Cement Fabrics
(India) (CF). JALPT operates as an authorized dealership of Honda
cars since 2010 and CF is engaged in manufacturing of pcc cements
pole since 1993.
COLD CARE: CARE Keeps C Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Cold Care
Technologies Private Limited (CCTPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.75 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 09,
2021, placed the rating(s) of CCTPL under the 'issuer
non-cooperating' category as CCTPL 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. CCTPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated October 25, 2022, November 14,
2022, February 9, 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).
Cold Care Technologies Private Limited (CCTPL) was established in
December, 2015 by Mr. P. Srinivasa Rao, Mr. P. Upender Rao and Mr.
P. Janardhan Rao to set up an integrated cold chain unit at its
plant located at Industrial Park, Gurram Palem, and Visakhapatnam.
The commencement of operations would be from August 2018. The land
which is of an area of 3986.20 sq. yards costing INR1.76 crore has
already been handed over by AP Industrial Infrastructure
Corporation Limited and is in possession by the company. The
various statutory licenses and approvals such as factory approval,
NOC from fire department and approval from Andhra Pradesh Pollution
Control Board is in place. The cost of the project (setting up the
plant) is INR13.86 crore of which the promoter's contribution would
be INR4.96 crore in the form of equity. The rest would be funded by
bank borrowings comprising of term loan of INR8.90 crore of which
INR2.23 crore has already been disbursed by the bank. The company
would be catering its services to retail outlets of KFC,
McDonald's, Subways, Burger King, Mother dairy etc.
INDROYAL PROPERTIES: CARE Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Indroyal
Properties Private Limited (IPPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 23.50 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 26,
2021, placed the rating(s) of IPPL under the 'issuer
non-cooperating' category as IPPL 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. IPPL
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).
About the Company Trivandrum based Indroyal Properties Private
Limited (IPPL) is engaged in development of real estate projects.
The ongoing project "The Uptown" is a high-end luxury residential
project comprising of 3 bed room condominiums, penthouses and
garden houses and a total of 213 units. The project was launched in
February 2015 and is located at PMGKannammoola Road, Trivandrum.
INSOLEXO PRIVATE: CARE Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Insolexo
Private Limited (IPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.09 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 30,
2021, placed the rating(s) of IPL under the 'issuer
non-cooperating' category as IPL 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. IPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated October 16, 2022, October 26, 2022, November 5,
2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Promoted in May 2016 by Brewer Energy Private Limited (BEPL) and Mr
M Muniraja, IPL is a special purpose vehicle (SPV) established to
set up a 3 MW grid connected solar photovoltaic (PV) power plant at
Kythaganakere, Tumkur at Karnataka.
JAY AMBE: CRISIL Assigns B+ Rating to INR6cr Cash Credit
--------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable/CRISIL A4'
ratings to the bank facilities of Jay Ambe Construction Co (JACC).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 4 CRISIL A4 (Assigned)
Cash Credit-
Stock 6 CRISIL B+/Stable (Assigned)
The ratings reflect the firm's susceptibility to tender-based
operations, modest scale of operations and low operating margin.
These weaknesses are partially offset by the extensive experience
of the promoter in the civil construction industry.
Key Rating Drivers & Detailed Description
Weaknesses:
* Susceptibility to tender-based operations: Revenue and
profitability depend entirely on the firm's ability to win tenders.
Also, entities in this segment face intense competition, thus
requiring them to bid aggressively to procure contracts, which
restricts the operating margin to a moderate level. Also, given the
cyclicality inherent in the construction industry, the ability to
maintain the profitability margin through operating efficiency
becomes critical.
* Modest scale of operations: The business risk profile of JACC is
constrained by its modest scale in the intensely competitive civil
construction industry, thus limiting its operating flexibility.
Revenue stood at INR26 crore in fiscal 2022 and is expected at
INR26 crore in fiscal 2023 as well.
* Low operating margin: Operating margin stood at 1.5-2% over the
three fiscals through 2022 and is expected to remain low at around
2% in fiscal 2023. Sustained increase in the margin will remain a
key monitorable.
Strength:
* Extensive experience of the promoter: The two-decade-long
experience of the promoter, his strong understanding of the market
dynamics and healthy relationships with suppliers and customers
will continue to support the business.
Liquidity: Stretched
Bank limit was utilised at 26% on average over the 12 months
through January 2023. Cash accrual, expected at INR24 lakh per
annum, will sufficiently cover minimal yearly debt obligation of
INR0.5 lakh over the medium term. Current ratio was adequate at
1.04 times as on March 31, 2022.
Outlook: Stable
JACC will continue to benefit from the promoter's extensive
experience and established relationships with clients.
Rating Sensitivity factors
Upward factors:
* Sustained increase in operating margin to 3.5% and better revenue
leading to higher cash accrual
* Improvement in the financial risk profile
Downward factors:
* Decline in revenue by 20% and profitability margin of below 1%
leading to lower net cash accrual
* Large debt-funded capital expenditure weakening the capital
structure
* Substantial increase in the working capital requirement weakening
liquidity and the financial risk profile
JACC, established in 2006 and based in Ahmedabad, is owned and
managed by Mr Sanjay P Patel. The firm is engaged in civil
construction works, such as that of government buildings,
classrooms and residential unit for government employees.
M. M. INTERNATIONAL: CRISIL Cuts LT/ST Debt Ratings to D
--------------------------------------------------------
CRISIL Ratings has downgraded its ratings on the bank facilities of
M. M. International (MMINTL) to 'CRISIL D/CRISIL D' from 'CRISIL
B+/Stable/CRISIL A4'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Rating - CRISIL D (Downgraded from
'CRISIL B+/Stable')
Short Term Rating - CRISIL D (Downgraded from
'CRISIL A4')
The downgrade reflects delays in servicing of debt and interest of
loan against property in which the firm is a co-borrower due to
tight cash flows owing to business pressure.
The ratings continue to reflect the firm's weak liquidity on
account of leveraged capital structure and modest scale of
operations. These weaknesses are partially offset by established
relationships of the firm with its customers resulting from
extensive experience of the promoters.
Key Rating Drivers & Detailed Description
Weaknesses:
* Delays in Debt servicing: There has been delay in servicing of
principal of loan against property in which MMINTL is a
co-borrower.
* Modest scale of operations: While revenue has increased from
INR68 crore in fiscal 2019 to INR98.97 crore for fiscal 2022, it
continues to remain modest. Scalability is also constrained on
account of fragmented nature of industry leading to intense
competition and pricing pressure.
* Leveraged Capital Structure: While firm has moderate working
capital requirement the reliance on external funds continues to
remain high indicated by average bank limit utilization of around
92% with peak utilisation reaching up-to 100%. It is on account of
modest networth of INR18.32 crore which has also resulted in Total
Outside Liabilities to Adjusted Net worth ratio of 1.69 times
estimated as on March 31,2022. However, with improving liquidity,
capital structure is expected to gradually improve over medium
term.
Strengths:
* Extensive industry experience of the promoters & established
customer base: With over 2 decades of experience in the spice
industry and promoter's understanding of the dynamics of the market
company was able to establish healthy relationships with its key
stakeholders like suppliers and customers.
* Moderate Debt Protection Metrics: Company has moderate debt
protection metrics indicated by interest coverage ratio of 10.32
times for fiscal 2022 and net cash accruals to adjusted debt of
around 0.17 times. Debt protection metrics is expected to remain
moderate over the medium term as well.
Liquidity: Poor
Bank limit utilization is high averaging at 92.22% for the
fund-based facilities during the last 12 months ended June 2022.
Current ratio was low at 1.09 times as on March 31,2022. Expected
Net Cash Accruals of over INR4.7 crore should suffice to cover the
debt obligation of around INR0.8-1.7 crore per annum over the
medium term. Being co-borrower, MMINTL is also exposed to loans
taken by its partners.
Rating Sensitivity factors
Upward Factors
* Track record of timely debt servicing for 90 days or more
* Improvement in scale of operations
* Improvement in financial risk profile
Incorporated in November 1996, MMINTL is a partnership firm into
processing and exporting spices (such as turmeric, coriander,
cumin, mustard and ginger) and food products (such as poha and
jaggery). The firm is based in Mumbai and is promoted by the Vora
family. Manufacturing unit of the firm is in Navi Mumbai.
MAANASA ENTERPRISES: CARE Lowers Rating on INR11.60cr Loan to D
---------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Sri Maanasa Enterprises Private Limited (SMEPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 11.60 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 December 10,
2021, placed the rating(s) of SMEPL under the 'issuer
non-cooperating' category as SMEPL 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. SMEPL 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).
The ratings assigned to the bank facilities of SMEPL have been
revised on account of non-availability of requisite information.
The ratings also factored decline in scale of operations, continued
net losses, leveraged capital structure and weak debt coverage
during FY21.
Sri Maanasa Enterprises Private Ltd. (SMEPL) was incorporated on
August 10, 2012. The company was started as a partnership firm in
2007 under the name of M/s. Sri Maanasa Enterprises at Kakinada
with a single retail outlet before being incorporated as a private
limited concern. In 2011, another retail outlet was started in
Vizag under the name of Sri Maanasa Garments Private Limited and
subsequently, in 2013, both the units got amalgamated into the
present form of Sri Maanasa Enterprises Private Ltd. The company is
engaged in textile trading business dealing in men's, women's and
children's garments, and currently operates four retail outlets;
one each in Vizag and Eluru and two in Kakinada, Andhra Pradesh.
The entire shareholding lies with the promoters and their
relatives. Mr. Krishna Murthy Gollapudy (Managing Director) has
around 15 years of experience in the retail industry.
MACRO VENTURES: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Macro
Ventures Private Limited (MVPL) continues 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
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated December 9,
2021, placed the rating(s) of MVPL under the 'issuer
non-cooperating' category as MVPL 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. MVPL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated October 25,2022, November 14,2022 and February
13, 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).
Incorporated in 2011, Macro Ventures Private Limited (MVPL) is a
part of the Macro Group and started its commercial operations in
February-2013. The company is an authorized dealer of Tata Motors
Ltd for its passenger cars, spares & accessories in Mohali and
Ropar, Punjab. MVPL is promoted by Mr. Deepak Chopra and Ms. Sonia
Chopra, who have extensive experience in the trading/distribution
business, as the group is already operating several dealerships
including Honda, Castrol Lubricants etc. under Macro Group Pvt Ltd,
M/s Macro Linkers (ML), M/s Vinayak Enterprises (VE) and M/s
Pioneer Sales Network (PSN).
MZ FOOD: CRISIL Withdraws D Rating on INR4.38cr Term Loan
---------------------------------------------------------
CRISIL Ratings has withdrawn its rating on the bank facilities of
MZ Food Products Private Limited (MZF) on the request of the
company and after receiving no objection certificate from the bank.
The rating action is in-line with CRISIL Rating's policy on
withdrawal of its rating on bank loan facilities.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3.2 CRISIL D/Issuer Not Cooperating
(Withdrawn)
Packing Credit 0.8 CRISIL D/Issuer Not Cooperating
(Withdrawn)
Proposed Long 2.6 CRISIL D/Issuer Not Cooperating
Term Bank (Withdrawn)
Loan Facility
Term Loan 1.52 CRISIL D/Issuer Not Cooperating
(Withdrawn)
Term Loan 4.38 CRISIL D/Issuer Not Cooperating
(Withdrawn)
CRISIL Ratings has been consistently following up with MZF for
obtaining information through letters and emails dated November 22,
2022 and January 16, 2023, among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MZF. This restricts CRISIL
Ratings' ability to take a forward looking view on the credit
quality of the entity. CRISIL Ratings believes that rating action
on MZF is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, CRISIL Ratings has
Continued the ratings on the bank facilities of MZF to 'CRISIL
D/CRISIL D Issuer not cooperating'.
MZF, incorporated in 2011, is promoted by Anand, Gujarat-based Mr
Nirav Patel and his family members. The company processes frozen
vegetables such as carrots, baby corn, broccoli florets, diced
onions, and potatoes, and frozen fruits such as sliced bananas,
mangoes, and pomegranates.
PRASAD AGRO: CARE Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Prasad Agro
Industries (PAI) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 17.50 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 January 31,
2022, placed the rating(s) of PAI under the 'issuer
non-cooperating' category as PAI 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. PAI
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated December 17, 2022, December 27, 2022, January 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).
Prasad Agro Industries (PAI) was established in November 2013 and
is based out of Latur, (Maharashtra). The firm is engaged in the
business of processing of Toor dal at its processing facility
located at Latur.
R L AGRO: CRISIL Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of R L Agro
Foods Private Limited (RLF) continue to be 'CRISIL D/CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 29 CRISIL D (Issuer Not
Cooperating)
Line of Credit 1 CRISIL D (Issuer Not
Cooperating)
Packing Credit 15 CRISIL D (Issuer Not
Cooperating)
Warehouse Financing 5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with RLF for
obtaining information through letters and emails dated November 24,
2022 and January 16, 2023 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of RLF, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RLF
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
RLF continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
For arriving at the ratings, CRISIL Ratings has combined the
business and financial risk profiles of RLF, S K Foods (SKF), Anand
Rice Mills (ARM) and Krish Cereals Pvt Ltd (KCPL). This is because
these entities, collectively referred to as the SK Foods group,
have common promoters and management and are in the same line of
business.
RLF was set up in 1998 as a proprietorship firm by Mr. Subhash
Chand and was reconstituted as a partnership firm, on September 1,
2014, with Mr Sunil Kumar coming onboard. It mills and sorts rice
and its unit has a capacity of 12 tonne per hour (tph).
RAMS ASSORTED: CARE Moves D Debt Ratings to Not Cooperating
-----------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Rams
Assorted Cold Storage Limited (RACSL) to Issuer Not Cooperating
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ 45.00 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating moved to
Bank Facilities ISSUER NOT COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. has been seeking information from RACSL to
monitor the rating(s) vide e-mail communications/letters dated
February 2, 2023, February 6, 2023, among others 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 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. Further, RACSL has not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. The rating on RACSL's bank facilities will now be
denoted as CARE D/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).
The ratings takes into account delays in interest servicing of
Covid Term Loan and EPC limits due to poor liquidity position.
Description of the key rating drivers
At the time of last rating on August 4, 2022, the following were
the rating weaknesses (updated for the information received
from Registrar of Companies)
Analytical approach: Standalone
Key weaknesses
* Delays in debt servicing: There are delays in interest servicing
of bank facilities due to poor liquidity position.
RACSL, incorporated in May 1986, is engaged in processing and
export of seafood. The company is promoted by Mr. Amarendra Dash
who has more than four decades of experience in shrimp industry.
The group has interest across diverse sectors like shrimp
processing, shrimp feed trading, hospitality and print media. RACSL
procures the prawns from farmers for processing in units located in
Cuttack (1,728 MTPA) and Paradip (2,160 MTPA). RACSL has taken the
hatcheries and farms owned by group company Suryo Foods and
Industries Limited on lease for hatching and shrimp farming.
RANA MILK: CARE Keeps D Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Rana Milk
Foods Private Limited (RMFPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 25.08 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 8,
2021, placed the rating(s) of RMFPL under the 'issuer
non-cooperating' category as RMFPL 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. RMFPL continues to be noncooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated October 24, 2022, November 3,
2022, November 13, 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).
Rana Milk Foods Private Limited was incorporated in 2005. RMFPL is
engaged in the production of various milk products like skimmed
milk powder (SMP), whole milk powder, dairy creamer, dairy whitener
and other milk products like desi ghee, white butter, etc. at its
unit located at Samrala, Punjab. The company is engaged in the
selling of packed milk and various milk products under the brand
name "Royal". The brand is sold in the markets of Punjab,
Chandigarh, Haryana and Himachal Pradesh. The company also has set
up a sales unit in Jodhpur which is mainly for the sale of Desi
Ghee in Rajasthan and nearby area.
RANGA PARTICLE: CARE Lowers Rating on INR99.50CR LT Loan to D
-------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Ranga Particle Board Industries Limited (RPBIL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 99.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE B-; Stable
Short Term Bank 4.70 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE A4
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated December 14,
2021, placed the rating(s) of RPBIL under the 'issuer
non-cooperating' category as RPBIL 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. RPBIL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated October 30, 2022, November 9,
2022, February 13, 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 instances
delays in debt servicing as recognized from publicly available
information i.e., FY21 audit report available from ROC Filings.
Ranga Particle Board Industries Limited ("RPBIL") was incorporated
on September 2, 2010 and was floated by Mr. Rangaiah Kakarala. In
the year 2014, Mr. Sanjiv Agrawal, current promoter and Director of
Paralam Global Private Limited (PGPL), took over the major control
of the Company from Mr. Rangaiah. In 2019, the company has
completed Medium Density Fiber (MDF) board plant in Kandukur,
District Ongole, Andhra Pradesh, and production has commenced in
March, 2019.
RM DAIRY: CARE Keeps D Debt Rating in Not Cooperating Category
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of RM Dairy
Products LLP (RDPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 42.41 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 9,
2021, placed the rating(s) of RDPL under the 'issuer
non-cooperating' category as RDPL 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. RDPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated October 25, 2022, November 14, 2022 and February
13, 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).
RM Dairy Products LLP is the flagship company of Ram Meher Group.
The group was started in 2005 with focus in the real estate and
glass industry. RM Dairy Products LLP was incorporated in April,
2015 as a limited liability partnership firm by eight partners - Mr
Ram Vinod Singh, Ms Radha Singh, Mr Shishir Singh, Mr Girish Goyal,
Ms Suman Goyal, Mr Ravi Singhal, Ms Archana Singhal and Ms Shally
Singh. The firm has a manufacturing plant in Aligarh, Uttar
Pradesh.
RM ROCKS: CARE Keeps C Debt Rating in Not Cooperating Category
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of RM Rocks
and Sand Private Limited (RRSPL) 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 9,
2021, placed the rating(s) of RRSPL under the 'issuer
non-cooperating' category as RRSPL 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. RRSPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated October 25, 2022, November 14,
2022, February 10, 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).
Kerala Based, R.M. Rocks and Sand Private Limited (RRSPL) was
incorporated in the year 2011 promoted by Mr. Rohit Mathai Roger
and Mrs. Miinu Roger. The company carries quarrying and mining of
rocks activities on its own quarry land and then converts the
blocks of rock into small stones. The rock is converted into metal
aggregate of different sizes and sells the products to its
customers Viz. Indtech Interior & Contractors Private Limited
(Interior designers), Sanu Industries, SeenaiEldho and Roger Mathew
& company among all. All the customers are based out of Kerala.
ROCKDUDE IMPEX: CRISIL Raises Rating on INR22cr Cash Loan to B
--------------------------------------------------------------
CRISIL Ratings has revised its ratings on the bank facilities of
Rockdude Impex Private Limited (RIPL) from 'CRISIL B+/Stable/CRISIL
A4' to 'CRISIL D/CRISIL D' and simultaneously upgraded the ratings
to 'CRISIL B/Stable/CRISIL A4'
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 22 CRISIL B/Stable (Revised from
'CRISIL B+/Stable' to 'CRISIL D'
and Simultaneously Upgraded to
'CRISIL B/Stable')
Inland/Import 16 CRISIL A4 (Revised from
Letter of Credit 'CRISIL A4' to 'CRISIL D' and
Simultaneously Upgraded to
'CRISIL A4')
Proposed Fund- 2.61 CRISIL B/Stable (Revised from
Based Bank 'CRISIL B+/Stable' to 'CRISIL D'
Limits and Simultaneously Upgraded to
'CRISIL B/Stable')
Term Loan 1.2 CRISIL B/Stable (Revised from
'CRISIL B+/Stable' to 'CRISIL D'
and Simultaneously Upgraded to
'CRISIL B/Stable')
Working Capital
Term Loan 7.19 CRISIL B/Stable (Revised from
'CRISIL B+/Stable' to 'CRISIL D'
and Simultaneously Upgraded to
'CRISIL B/Stable')
The ratings revision to 'CRISIL D/CRISIL D' takes into account the
delay in servicing of term debt obligations during fiscal
2022.However, the rating has been simultaneous upgrade because of
timely servicing of debt obligations for over 90 days, however
liquidity continues to remain poor with limited cushion in net cash
accruals against debt repayments as well as high bank limit
utilization.
The ratings continue to reflect subdued operating profits and
working capital intensive nature of operations and weak financial
risk profile. These weaknesses are partially offset by extensive
experience of the promoters is the aluminum industry.
Analytical Approach
Unsecured loan to the tune of INR1.44 crore as on March 31, 2022 is
treated as neither debt nor equity as the same is expected to be
retained in business over the medium term.
Key Rating Drivers & Detailed Description
Weaknesses:
* Subdued operating profits: Operating margins of the company have
remained volatile in the range 4.8% to 2.9% in the last three
fiscals through fiscal 2022.Although on an improving trend
operating margin of the company continue to remain subdued
resulting to higher reliance on external debt thereby increasing
the interest outlay of the company. Higher interest outlay has led
to weaker debt protection metrics and has also led to a strain on
liquidity profile of the company.
* Working capital-intensive operations: Although on an improving
trend the operations of the company continue to remain working
capital intensive as reflected in the 159 Gross Current Asset (GCA)
days as on March 31,2022 mainly due to higher inventory days at
around 86 days these working capital requirements are met by bank
lines and creditors which stood at 43 days as on March 31,2022.
* Weak capital structure: Total outside liabilities to adjusted
networth ratio was high at 6.08 times as on March 31, 2022, on
account of modest networth of INR10 crore and significant external
borrowing. The debt protection metrics was weak with interest
coverage ratio of 1.16 times and net cash accruals to repayment
obligation around 0.01 times as on March 31,2022
Strength:
* Extensive experience of promoters: The promoters have an
experience of over two decades in aluminum industry which have
helped them to establish strong understanding of the local market
dynamics, and healthy relations with customers and suppliers and
established brand named “Freshee'. Experience of partners should
continue to support the business over medium term.
Liquidity: Poor
Liquidity of the company is poor as the expected net cash accruals
of INR1.9 Cr are insufficient to repay debt obligations worth
INR2.2-3.7 Cr. Bank limits of the company have been fully utilized
for the last twelve months ended December 2022 despite availing
ad-hoc on several occasions. Liquidity is supported by unsecured
loans from the promoters and subsidy received from the state
government. RIPL has no major capex plans over the medium term.
Current ratio was low at 0.86 times as on March 31,2022.
Outlook: Stable
CRISIL Ratings believes RIPL's credit profile will continue to be
supported by promoter's extensive industry experience and
established brand.
Rating Sensitivity factors
Upward Factors
* Sustained growth in revenues while maintaining better operating
profit margin, resulting in net cash accruals to repayment
obligations above 1.2 times
* Sustained improvement in debt protection metrics emanating from
improvement in capital structure and liquidity.
Downward Factors
* Lower than expected improvement in operating performance,
resulting in net cash accruals to repayment obligation remaining
below 1 time
* Large working capital cycle resulting in deterioration in
financial risk profile with bank limit utilization continuing to
remain high
RIPL is a Mumbai based company incorporated in 2009 by Mr Somani
and Mr Anand. It is engaged in manufacturing of kitchen Aluminum
Foil and containers under the brand name of 'Freshee' and also
exports to overseas market.
SAI EXPORT: CRISIL Lowers Rating on INR35cr Export Debt to B-
-------------------------------------------------------------
CRISIL Ratings has downgraded the rating on the long-term bank
facilities of Sai Export Enterprises (SEE) to 'CRISIL B-/Stable'
from 'CRISIL B/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Export Packing 35 CRISIL B-/Stable (Downgraded
Credit from 'CRISIL B/Stable')
The downgrade in rating reflects the weakening of the liquidity and
financial risk profile of SEE. The bank limits are almost fully
utilized, with an average utilization of about 98.86% for 12
months, ended in December 2022. The net cash accruals have been
negative in the past 2 fiscals, ended in FY22, owing to the
withdrawals by the partners of over INR9.3 crore. This has in turn
impacted the capital structure of the firm, as reflected by the
gearing, which has increased from 2.99 times as on March 31, 2021,
to 4.89 times as on March 31, 2022. The debt protection metrics are
also weak, as reflected by the interest coverage of 1.17 times in
fiscal 2022.
The ratings continue to reflect the firm's weak debt protection
metrics and leveraged capital structure and working capital
intensive nature of operations. These rating weaknesses are partly
mitigated by extensive experience of the partners in the cashew
processing industry.
Key Rating Drivers & Detailed Description
Weaknesses:
* Working capital intensive nature of operations: The firm's
operations are highly working capital intensive, as indicated by
GCA days of 165 as on March 31, 2022. High GCA days is on account
of large inventory and moderately stretched receivables. The
receivables days and inventory days were around 63 days and 102
days, respectively. They are expected to continue to remain in
similar lines in the medium term.
* Weak debt protection metrics and leveraged capital structure:
Debt protection metrics are weak as reflected by the interest cover
of 1.17 times and net cash accruals to adjusted net worth ratio of
-0.10 times in fiscal 2022. The capital structure is leveraged as
reflected by the gearing of 4.89 times as on March 31, 2022, driven
by a modest net worth of INR8.42 crore. The gearing is expected at
4.65 times as on March 31, 2023, with a net worth of INR8.49 crore.
The withdrawals by the partners, continue to weaken the capital
structure of the firm. The same will remain a key monitorable going
forward.
Strength:
* Extensive experience of the promoters in the cashew processing
industry: Benefits from the promoters' extensive experience in the
industry and established relationships with suppliers and customers
should support the business. The firm is part of the Prasanthi
Group, which operates around 100 owned processing units in Kerala,
Tamil Nadu and Andhra Pradesh, with a combined processing capacity
of around 250 tonnes per day.
Liquidity: Poor
Bank limit utilisation is high at around 98.73 percent for the past
twelve months ended December 2022. Cash accruals are expected to be
over INR0.4-1 crore which are insufficient against term debt
obligation of INR1.5 crore over the medium term. Current ratio is
low at 0.85 times on March 31, 2022. The partners have withdrawn
over INR9.3 crore during last 2 years ending March 31, 2022, as a
result the networth has declined and will remain a rating
sensitivity factor.
Outlook: Stable
CRISIL Ratings believes SEE will continue to benefit from its
promoters' extensive industry experience.
Rating Sensitivity factors
Upward factors
* Sustained increase in NCA to above INR2 crore per annum to be
able meet repayment obligations
* Improvement in financial risk through lowered gearing below 2
times
* Improvement in the liquidity profile
Downward factors
* Decline in scale of operations by 30% or decline in
profitability, leading to lower cash accruals
* Delays in debt servicing
* Further decline in liquidity profile or financial risk profile
due to withdrawals by the partners
Founded as a partnership firm by Mr Mohan Chandra Nair and Ms K R
Ushasree in Kerala in 1995, SEE processes and exports cashew
kernels.
SAMVARDHANA MOTHERSON: Moody's Affirms 'Ba1' CFR, Outlook Stable
----------------------------------------------------------------
Moody's Investors Service has affirmed Samvardhana Motherson
International Limited's (SAMIL) Ba1 corporate family rating.
The rating outlook remains stable.
On February 19, SAMIL announced that its wholly-owned subsidiary,
Samvardhana Motherson Automotive Group B.V. (SMRP), will acquire a
100% stake in SAS Autosystemtechnik GmbH (Germany) (SAS) from
Faurecia S.E. (Ba2 negative), a FORVIA Group company, for an
enterprise value of EUR540 million.
"The rating affirmation with stable outlook reflects Moody's
expectation that SAMIL's credit metrics will continue to improve
and stay within the tolerance level of its ratings despite the
partially debt funded acquisition of SAS. This is based on Moody's
view that SAMIL's profitability will continue to improve and its
revenue will continue to grow," says Kaustubh Chaubal, a Moody's
Senior Vice President.
RATINGS RATIONALE
"The proposed acquisition will position SAMIL as a leading global
provider of assembly and logistics services for original equipment
manufacturers (OEMs) in the automotive industry. SAS'
geographically diversified presence across 12 countries and
well-entrenched service offering through its 24 facilities will aid
SAMIL in increasing its customer proximity and strengthening its
business profile while adding scale," adds Chaubal, who is also
Moody's lead analyst for SAMIL.
The transaction, which will likely be completed by September 2023,
is awaiting regulatory and procedural approvals. Moody's expects
the transaction will be funded by a judicious mix of incremental
debt and cash from SAMIL's cash balance of USD550 million as of
December 2022.
Proforma the acquisition, Moody's expects SAMIL's consolidated
revenues to climb by around USD1.0 billion to USD11 billion during
the fiscal year ending March 31, 2024 (fiscal 2024). Its EBITA
margin would also improve to around 5% in fiscal 2024 from 4.5% in
fiscal 2023, underpinned by the rating agency's expectation of
slightly lower commodity prices during fiscal 2024 relative to the
prior year. SAMIL's EBITA margin will also be supported by SAS'
superior profitability compared with SAMIL's.
In Moody's view, SAMIL's adjusted gross debt/EBITDA leverage will
fall below 3.0x by March 2024, improving from 3.2x at March 2023
and an estimated 3.5x at December 2022.
SAMIL's Ba1 CFR continues to reflect the company's strong business
profile, driven by its diversified product portfolio and
long-standing relationships with leading automotive OEMs across
multiple geographies. At the same time, its measured approach to
growth, prudent financial discipline and demonstrated track record
of seamlessly integrating its acquisitions are a cornerstone to its
credit profile.
Counterbalancing these strengths are SAMIL's exposure to the
inherently cyclical global automotive industry, the weakening
macroeconomic environment, high and volatile input costs, and
pricing pressures facing auto suppliers from large, influential OEM
customers.
OUTLOOK
The stable outlook reflects Moody's view that SAMIL will
successfully complete the SAS acquisition and seamlessly integrate
it without significant delays. The rating agency does not expect
the company to undertake any large or transformational
acquisitions, at least until SAS is completely integrated.
The stable outlook also reflects Moody's expectation that SAMIL's
strengthening business profile will pave the way for a sustained
improvement in credit metrics that remain appropriate for the Ba1
CFR.
LIQUIDITY
SAMIL's liquidity is adequate. The company's cash and cash
equivalents of USD550 million, along with its estimated cash flow
from operations of USD1 billion over the 18-month period through
June 2024, will be just sufficient to meet its cash needs towards
investments, capital expenditure, repayment of short term and long
term debt and modest dividends. Moody's notes that the company is
in the process of renewing its EUR350 million multi-year revolving
credit facility, which will need to be drawn, especially given the
intra-year volatility in its working capital.
ESG CONSIDERATIONS
SAMIL's exposure to moderately negative environmental and social
risks reflects the nature of its business, which is predominantly
driven by automotive parts.
SAMIL's governance risks are also moderately negative, reflecting
its concentrated ownership with the Sehgal family holding a 50.5%
stake in the company, counterbalanced by the presence of an
independent board of directors and its management's track record of
prudent financial policies.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
Upward rating momentum is unlikely until the global macroeconomic
environment improves and inflationary pressures subside. Key
financial metrics for a higher rating include Moody's-adjusted
EBITA margin of at least 7%, leverage remaining comfortably below
3.0x and positive free cash flow generation, all on a sustained
basis.
SAMIL's Ba1 CFR could come under pressure if its Moody's-adjusted
EBITA margin remains below 5.0%; if its leverage stays above 3.5x;
or if free cash flows stay negative over a sustained period.
Execution risks associated with the proposed SAS acquisition, and
its timely and seamless integration, could strain the Ba1 CFR.
Downward rating pressure could also build if the company undertakes
any acquisition without an immediate and significant
counterbalancing effect on its earnings, thereby skewing its
financial profile.
PRINCIPAL METHODOLOGY
The principal methodology used in this rating was Automotive
Suppliers published in May 2021.
COMPANY PROFILE
Samvardhana Motherson International Limited (SAMIL) is a leading
supplier of wiring harness, vision systems and polymer modules
globally. It is listed on the two stock exchanges in India -- the
National and Bombay Stock Exchanges. The company's market
capitalization was around USD6.7 billion as of February 20, 2023.
The Sehgal family and Sumitomo Wiring held stakes of 50.6% and
17.6%, respectively, in the company as of December 31, 2022.
SAMIL generated revenues and EBITDA of USD8.35 billion and USD659
million, respectively, during the fiscal year ended March 31, 2022.
SREI GROUP: Authum Seeks Review of Appraisal Matrix in Insolvency
-----------------------------------------------------------------
The Economic Times of India reports that Authum Investment and
Infrastructure has filed a petition in the Kolkata National Company
Law Tribunal (NCLT) seeking revaluation of the appraisal matrix
that gave the winning bidder National Asset Reconstruction Co
(NARCL) a higher score in the bid for the twin Srei companies.
ET relates that the Mumbai-based non-banking finance company (NBFC)
has also offered an additional upfront payment of INR250 crore over
and above its original amount of INR3,240 crore in a petition filed
before the court. The next date for the hearing is set for February
28.
SREI Infrastructure Finance Ltd. is a non-banking financial
institution. The company has three principal lines of business in
financing: infrastructure equipment finance, infrastructure
projects finance and renewable energy product finance.
Infrastructure equipment finance is the largest business division
of the Company.
On Oct. 4, 2021, the Reserve Bank of India superseded the board of
directors of Kolkata-based Srei Infrastructure and said that it
will initiate insolvency proceedings with the National Company Law
Tribunal (NCLT), according to The Economic Times. The RBI cited
governance concerns and defaults by the company and appointed
Rajneesh Sharma, former chief general manager, Bank of Baroda as an
administrator of the company.
The insolvency resolution process against the company started on
Oct. 8, 2021.
The RBI-appointed administrator has admitted claims of around
INR31,868 crore of the total claims received of around INR34, 223
crore from financial creditors to Srei Equipment Finance Ltd
(SEFL), the Hindu BusinessLine disclosed. He had also admitted
claims to the tune of INR257 crore from financial creditors to Srei
Infrastructure Finance.
SUSHEEL ENGINEERS: CARE Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Susheel
Engineers (SE) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
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 January 24,
2022, placed the rating(s) of SE under the 'issuer non-cooperating'
category as SE 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. SE continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
December 10, 2022, December 20, 2022, December 30, 2022.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
SE was established in 1994 by Mr. Sidram. G. Sidrure and is engaged
in manufacturing and servicing of boiler components, steel casing,
industrial chimney, collector columns, industrial duct etc. The
manufacturing facility of SE is located at Bhosari, Pune
(Maharashtra).
ZEE ENTERTAINMENT: NCLT Admits Insolvency Bid Against Company
-------------------------------------------------------------
Business Standard reports that the National Company Law Tribunal
(NCLT) on Feb. 22 admitted an insolvency petition filed against Zee
Entertainment Enterprises Limited (ZEEL) filed by the IndusInd Bank
after the company failed to repay INR83 crore under a debt service
reserve account agreement (DSRA) to the bank.
The company is currently undergoing a merger with the Sony India
which is pending with the regulatory authorities and the court.
Based in Mumbai, India, Zee Entertainment Enterprises Limited,
together with its subsidiaries, engages in broadcasting satellite
television channels.
[*] INDIA: Creditors Face Haircut of 70% in Insolvency Cases
------------------------------------------------------------
The Economic Times of India reports that the overall recovery rate
in Indian insolvency cases till Q3FY23 was 30.4 per cent implying a
haircut of approximately 70 per cent.
The cumulative recovery rate has been on a downtrend, decreasing
from 43 per cent in Q1FY20 and 32.9 per cent in Q4FY22 as larger
resolutions have already been executed and a significant number of
liquidated cases were either BIFR cases and/or defunct with high
resolution time, coupled with lower recoverable values, ET relays
citing a Care Edge report.
Post the implementation of the IBC, the overall recovery rate till
Q4FY22 in India reached 32.9 per cent which has been on a
continuous declining trend. The recovery rate for Q3FY23 stood at
23.45 per cent, while the overall recovery rate reached 30.4 per
cent till Q3FY23. Consequently, for the cases which have been
resolved, the creditors have continued to face a haircut of
approximately 70 per cent on admitted claims.
Of the 2,000 ongoing CIRPs, there has been a delay of more than 270
days for the completion of the process of 64 per cent of ongoing
CIRPs in December 2022 which is a decline of 9 per cent as compared
to 73 per cent in December 2021, the report, as cited by ET, said.
Further, the 'more than 180 days but less than 270 days' segment is
the second largest indicating that quite a few cases which had
commenced in the earlier quarters have piled up, while the other
two categories continue to have quite a few cases in them
highlighting the significant delays in the process.
After slowing in the pandemic period of FY21 and FY22, the number
of insolvency cases increased by 25 per cent y-o-y in Q3FY23, ET
notes. However, despite the increase, the number of cases admitted
to the insolvency process continued to be lower compared to earlier
quarters in FY19/20. The distribution of cases across sectors
continues to remain broadly similar, compared to earlier periods
given the extended resolution timelines.
ET says the share of the various sectors has largely remained
constant compared with the previous period. The manufacturing
sector accounts for the highest share at 39 per cent of the overall
cases, followed by the real estate (21 per cent), construction (11
per cent) and trading sectors (10 per cent).
Of the total 6,199 cases admitted into CIRP at the end of December
2022 only 10 per cent have ended in approval of resolution plans,
while 32 per cent remain in the resolution process vs. 35 per cent
as of the end of March 2022, the report said, ET relays.
1,901 have ended in liquidation (31 per cent of the total cases
admitted). Meanwhile, 76 per cent of such cases were either BIFR
cases and/or defunct. These cases had assets which had been valued
at less than 8 per cent of the outstanding debt.
Around 14 per cent (894 CIRPs) have been closed on
appeal/review/settled, while 13 per cent have been withdrawn under
Section 12A, ET says. A significant number of withdrawn cases
(around 54 per cent) were less than Rs 1 crore, while the primary
reason for withdrawal has been either the full settlement with the
applicant (306 cases) or other settlement with creditors (210
cases).
=================
I N D O N E S I A
=================
SAI BABUJI: CARE Keeps D Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sai Babuji
Projects Private Limited (SBPPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.40 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term 5.60 CARE A4; ISSUER NOT
Bank 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 15,
2021, placed the rating(s) of SBPPL under the 'issuer
non-cooperating' category as SBPPL 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. SBPPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated October 31, 2022, November 10,
2022, November 20, 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).
Hyderabad based, Sai Babuji Projects Private Limited (SBPPL) was
incorporated in August 2011 by Mr. Sreekanth Mallela and Mrs.
Bhuvaneshwari Mallela. The company is engaged in system integration
i.e. supply, installation and commissioning of solar water pumping
systems since 2014. The company has its customer base spread across
Telangana, Tamil Nadu, Andhra Pradesh, Chhattisgarh, and Gujarat.
===============
M A L A Y S I A
===============
EA TECHNIQUE: New Party May Acquire Controlling Stake in Group
--------------------------------------------------------------
Syafiqah Salim at theedgemarkets.com reports that EA Technique Bhd
(EATech), which is in the midst of preparing its financial
regularisation plan, said there could be a potential entry of a new
largest shareholder in the Practice Note 17 (PN17) group.
According to the report, the marine vessels operator said it is in
discussions with a party that could subscribe to the group's new
securities, which would result in the party acquiring a controlling
stake in the group.
"Pursuant thereto, should the shareholdings of the potential
offeror and persons acting in concert (PACs) in EATech increase
from below 33% to above 33%, the said party will be obligated to
undertake a mandatory general offer (MGO) for the remaining shares
of EATech not held by the offeror and PACs," EATech said in a
bourse filing.
If the two parties reach an agreement, it will still need to be
approved by Bursa Malaysia Securities and the group's shareholders,
the group added, theedgemarkets.com relays.
There has been speculation in the market that businessman Tan Sri
Rashid Manaf, who is one of the founders of Eco World Development
Group Bhd, could take up a substantial stake in EATech.
The Edge Malaysia, in its Feb 6-12 edition, reported that Rashid
might be acquiring shares from Sindora Bhd, a unit of Johor Corp
(JCorp).
Through Sindora, JCorp holds a 50.05% stake in EATech. JCorp is
also an indirect shareholder of EATech through the 2.43% stake held
by Kulim (M) Bhd.
About E.A. Technique
E.A. Technique (M) Bhd owns and operates marine vessels focusing on
marine transportation and offshore storage of oil and gas, and
provision of port marine services. The Company also owns a shipyard
involved in shipbuilding, ship repair and minor fabrication of
steel structures.
EATech slipped into Practice Note 17 (PN17) status in February
2022, as its shareholders' equity of MYR5.96 million as at Dec. 31,
2021 was less than 50% of its share capital of MYR179.76 million,
according to theedgemarkets.com.
The company was therefore required to submit a regularisation plan
to the Securities Commission Malaysia within 12 months.
For the nine-month period ended Sept. 30, 2022, EATech narrowed its
net loss to MYR2.94 million from MYR45.37 million a year earlier,
amid lower depreciation, gain on disposal of vessels and lower
foreign exchange losses.
Nine-month revenue, however, decreased to MYR111.91 million from
MYR124.57 million mainly due to expiry of certain contracts.
=====================
N E W Z E A L A N D
=====================
CHAOHU LIMITED: Court to Hear Wind-Up Petition on March 2
---------------------------------------------------------
A petition to wind up the operations of Chaohu Limited will be
heard before the High Court at Auckland on March 2, 2023, at 10:00
a.m.
Henrietta Trust filed the petition against the company on Nov. 23,
2022.
The Petitioner's solicitor is:
Nilson Nafiz Geiger
DG Law Limited
54 Lunn Avenue
Mt Wellington
Auckland
INDIGO ISLAND: Creditors' Proofs of Debt Due on March 21
--------------------------------------------------------
Creditors of Indigo Island Limited are required to file their
proofs of debt by March 21, 2023, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Feb. 20, 2023.
The company's liquidator is:
Victoria Toon
Corporate Restructuring Limited, Chartered Accountants
PO Box 10100
Dominion Road
Auckland 1446
LHS INTERNATIONAL: Creditors' Proofs of Debt Due on March 24
------------------------------------------------------------
Creditors of LHS International Limited are required to file their
proofs of debt by March 24, 2023, to be included in the company's
dividend distribution.
The High Court at Auckland appointed Adam Botterill and Damien
Grant of Waterstone Insolvency as liquidators on Feb. 17, 2023.
SOLID NZ: Creditors' Proofs of Debt Due on March 27
---------------------------------------------------
Creditors of Solid NZ Limited and Accuracy Consultant 2016 Limited
are required to file their proofs of debt by March 27, 2023, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on Feb. 20, 2023.
The company's liquidator is:
Heath Gair
Palliser Insolvency
PO Box 57124
Mana
Porirua 5247
===============
P A K I S T A N
===============
PAKISTAN: Pledges to Pay Debt Obligation Amid Cash Crunch
---------------------------------------------------------
Bloomberg News reports that Pakistan pledged to pay its sovereign
debt obligations this year as it treads close to a possible default
with foreign-exchange reserves covering less than a month of
imports.
"Come what may, we will be paying off all of our anticipated
payments this year," Bloomberg quotes Commerce Minister Syed Naveed
Qamar as saying in an interview in Washington on Feb. 21. The
government will fulfill its international financial obligations,
Finance Minister Ishaq Dar said in a statement the same day.
Pakistan is confident of securing an International Monetary Fund
bailout "any day now," Qamar said, which would boost its reserves
that stand at US$3.2 billion, Bloomberg relays. The nation needs to
finance $5.9 billion in debt payments and current-account deficit
through June, Bloomberg Economics estimated last month.
According to Bloomberg, Pakistan's dollar bonds are trading in
distressed territory, signaling investors are worried about its
ability to pay its debt. Pakistan has $8 billion in Eurobond debt
due by 2051 with the next payment of $1 billion due in April next
year. Most of the nation's external debt of $92 billion is sourced
from concessional multilateral and bilateral sources.
About Pakistan
Pakistan is a country located in South Asia. It has a coastline
along the Arabia Sea and the Gulf of Oman and is bordered by
Afghanistan, China, India, and Iran. Pakistan's capital is
Islamabad.
As reported in the Troubled Company Reporter-Asia Pacific on Feb.
20, 2023, Fitch Ratings has downgraded Pakistan's Long-Term
Foreign-Currency Issuer Default Rating (IDR) to 'CCC-', from
'CCC+'. There is no Outlook assigned, as Fitch typically does not
assign Outlooks to ratings of 'CCC+' or below.
According to Fitch Ratings, the downgrade reflects further sharp
deterioration in external liquidity and funding conditions, and the
decline of foreign-exchange (FX) reserves to critically low levels.
While Fitch assumes a successful conclusion of the 9th review of
Pakistan's IMF programme, the downgrade also reflects large risks
to continued programme performance and funding, including in the
run-up to this year's elections. Default or debt restructuring is
an increasingly real possibility, in its view.
The TCR-AP reported in December 2022, that S&P Global Ratings
lowered its long-term sovereign credit rating on Pakistan to 'CCC+'
from 'B-', and the short-term rating to 'C' from 'B'. The outlook
on the long-term rating is stable. S&P also lowered its long-term
issue rating on Pakistan's senior unsecured notes to 'CCC+' from
'B-'.
=================
S I N G A P O R E
=================
AUSGROUP LIMITED: Court Enters Judicial Management Order
--------------------------------------------------------
The High Court of Singapore entered an order on Feb. 20, 2023, to
place AusGroup Limited under judicial management.
The company's judicial managers are Tan Wei Cheong, Matthew Stuart
Becker and Lim Loo Khoon.
HWA HONG: Court to Hear Wind-Up Petition on March 3
---------------------------------------------------
A petition to wind up the operations of Hwa Hong Corporation
Limited will be heard before the High Court of Singapore on March
3, 2023, at 10:00 a.m.
Evercore Asia (Singapore) Pte. Ltd. filed the petition against the
company on Feb. 6, 2023.
The Petitioner's solicitors are:
Davinder Singh Chambers LLC
1 Wallich Street
#20-02 Guoco Tower
Singapore 078881
LIPPO MALLS: Fitch Lowers LongTerm Issuer Default Rating to 'CCC+'
------------------------------------------------------------------
Fitch Ratings has downgraded Lippo Malls Indonesia Retail Trust's
(LMIRT) Long-Term Issuer Default Rating (IDR) to 'CCC+' from 'B-'.
Fitch has also downgraded the rating on LMIRT's senior unsecured
notes due 2024 and 2026 to 'CCC+' from 'B-'; with the Recovery
Rating remaining at 'RR4'. The notes are issued by its wholly owned
subsidiary, LMIRT Capital Pte. Ltd, and are guaranteed by Perpetual
(Asia) Limited, in its capacity as trustee of LMIRT.
The downgrade reflects the heightened risk LMIRT faces in
refinancing large upcoming debt maturities amid unfavourable debt
capital market conditions and weakening investor sentiment. The
trust will need external financing to meet a substantial part of
the SGD580 million, or two-thirds of debt, maturing over the next
16 months. LMIRT's large unencumbered pool of assets may aid
refinancing, but there are significant execution risks in moving to
a secured-capital structure.
Fitch also expects LMIRT's financial flexibility to weaken with
funds from operation (FFO) fixed-charge cover, which includes the
coupons on its perpetual securities, falling to 1.0x in 2023 and
2024. The trust has high exposure to rising interest rates, while
the recovery in its operating cash flow may be pressured if the
Indonesian rupiah depreciates further.
KEY RATING DRIVERS
Upcoming Refinancing Hurdles: Key debt maturities include a SGD135
million bank loan due in November 2023, SGD82.5 million of bank
loans due in January 2024 and a USD250 million medium-term note due
in June 2024. LMIRT's access to banks should facilitate its
refinancing of the bank loans, although the weakening in investor
sentiment could result in delays, and more onerous terms.
In contrast to the bank loans, the refinancing risk for the 2024
notes stands markedly higher in its view. The trust's entirely
unpledged portfolio of shopping malls means raising secured
borrowings remains an option, although the execution risks will
include the restrictive covenants in the 2026 unsecured notes
indenture on taking on secured debt.
Thin Fixed-Charge Coverage: Fitch expects rising interest rates to
increase LMIRT's interest payments to SGD60 million in 2022 and
SGD78 million in 2023, from SGD55million in 2021. LMIRT's
outstanding borrowings are 57.8% on floating rates. Fitch has
factored in a benchmark interest rate of around 500bp in 2023.
Fitch also forecasts LMIRT's perpetual securities' coupon to rise
to nearly SGD19 million in 2023, from SGD17 million in 2022, after
the coupon rate on the SGD120 million perpetual securities was
reset as it was not called on its first call date in December
2022.
Limited Regulatory Leverage Headroom: LMIRT estimates its
regulatory leverage ratio, or debt/total assets, rose to 44.6% by
end-December 2022, from 42.5% at end-2021, leaving little room
under the regulatory ceiling of 45%. Debt/total assets may rise
above 45% if the rupiah weakens further, or if the value of malls
with land titles under the build, operate, transfer scheme decline.
A breach of the regulator's guidelines would tighten LMIRT's
financial flexibility significantly.
LMIRT has indicated that its efforts to reduce leverage amid
exchange rate volatility could affect the distributions to
perpetual securities holders and unit holders. Fitch estimates that
trust may be able to conserve up to SGD43 million of cash flow
annually if it opts not to pay the perpetual coupons, because such
a move will prevent the payout of common dividends as well. This,
combined with its cash balance of SGD106.7 million as of September
2022, provides it with some flexibility to manage the leverage
ratio, all else being equal.
High Foreign-Exchange Risk: Currency risk is high as LMIRT's debt
is denominated in US dollars or Singapore dollars, while revenue is
generated solely in rupiah. Further rupiah depreciation will reduce
the value of cash flow and assets in Singapore dollar terms,
putting pressure on interest coverage and the loan-to-value ratio
(LTV). LMIRT has hedged around 60% of the notional value of its net
rupiah cash flow for 2023 using options contracts, but this only
provides partial protection against a further decline in the
exchange rate.
Slow Operational Recovery: Fitch forecasts net property income
(NPI) to reach SGD131 million in 2022 and SGD137 million in 2023,
supported by gradual improvement in the occupancy rate to 81% in
2022 and 84% in 2023. Fitch expects occupancy to stabilise, but
remain below pre-pandemic levels of over 90% for the next two
years. This is due mainly to structural weakening in occupancy
post-pandemic in several malls and redevelopment activities in two
malls. Improving rents from the reduction of rent rebates to
tenants may be partly offset by currency risk.
Limited Sponsor Influence: Fitch rates LMIRT on a standalone basis
due to robust regulatory ringfencing from PT Lippo Karawaci TBK
(Lippo, B-/Stable). Lippo owns 100% of the REIT's manager, although
the Singapore Securities and Futures Act prevents Lippo from
holding a majority representation on the REIT manager's board. In
addition, the sponsor does not control LMIRT because it holds only
a 47% interest. LMIRT, as a Singapore REIT, is also subject to
restrictions on gearing ratios and development activities, and
requires minority shareholders to approve related-party
transactions.
Perpetual Securities Treated as Equity: Fitch treats LMIRT's SGD260
million in perpetual securities, issued in 2016 and 2017, as 100%
equity due to strong going-concern and gone-concern loss-absorption
features. This also factors in LMIRT's intention to maintain the
securities as a permanent part of its capital structure. The trust
did not call the SGD140 million securities callable in September
2021 and SGD120 million securities callable in December 2022, amid
weak market sentiment.
DERIVATION SUMMARY
LMIRT is rated two notches below Ronesans Gayrimenkul Yatirim A.S.
(RGY, B/Negative), a Turkish property company with 12 destination
shopping centres across seven of Turkiye's largest cities. RGY has
a smaller and less-diversified portfolio than LMIRT, but stronger
profitability with a higher EBITDA margin. RGY's operation has
recovered faster than LMIRT's after the pandemic, with much higher
occupancy of 97% in 1H22. The Negative Outlook on RGY reflects high
refinancing risk for its USD300 million bond maturing in April
2023, although the company has positioned itself to manage the
refinancing by purchasing 30% of the bonds, while related parties
hold another 50% and the company has sufficient cash to repay the
remaining 20%.
Indonesia-based homebuilder PT Kawasan Industri Jababeka Tbk's
(KIJA, CCC+) is rated at the same level as LMIRT after a distressed
debt exchange (DDE) of US dollar bonds, reflecting KJIA's tight
liquidity. Fitch believes that KJIA will be able to repay the
remainder of debt maturities in 2023, although the liquidity
headroom is minimal with the cash balance likely to deplete beyond
12-18 months without additional external funds.
LMIRT is rated one notch above Indonesia-based developer PT Agung
Podomoro Land Tbk (APLN, CCC), reflecting APLN's weaker liquidity,
in particular to cover interest payments and operating costs at the
holding company. The sale of APLN's Central Park Mall in October
2022 reduced immediate liquidity and refinancing pressure, but also
significantly lowered its financing flexibility. Following the sale
Fitch views APLN as having limited options for secured borrowings
to refinance its USD300 million unsecured notes due in June 2024,
compared to LMIRT's entirely unpledged portfolio of shopping malls
with a market value of SGD1.8 billion at end-September 2022.
Lippo, an Indonesian homebuilder and LMIRT's sponsor, is rated one
notch higher than LMIRT, underscoring Lippo's sufficient liquidity
despite Fitch's expectation of negative free cash flow. Slower
presales amid rising inflation and interest rates will continue to
pressure Lippo's cash flow in the next 12 months. Lippo's recent
buyback of US dollar bonds using bank debt demonstrates its healthy
access to domestic banks, broadens its funding diversity and
improves its liquidity profile.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer:
- Gradual recovery of the occupancy rate resulting in 2022 NPI
(including Puri) of SGD131 million and 2023 NPI (including Puri) of
SGD137 million;
- Dividend payout of SGD24 million a year in 2022 and 2023;
- Annual capex of SGD15 million-18 million;
Key Recovery Rating Assumptions
- Fitch assumes LMIRT will be liquidated in a bankruptcy than
continue as a going concern, as Fitch believes creditors are likely
to maximise recoveries by selling the investment properties.
- Fitch calculates a liquidation value under a distressed scenario
of SGD1.35 billion as of end-September 2022.
- Fitch uses stressed capitalisation values to arrive at the
distressed valuation for LMIRT's investment properties. Fitch uses
a 10% capitalisation rate as a reference, being the average of
capitalisation rates from recent divestments and acquisitions, and
apply this to its 2022 NPI estimate.
- The estimate also reflects its assessment of the value of trade
receivables under a liquidation scenario, with a 75% advance rate.
Fitch believes a 25% discount is sufficient to cover potential bad
debts. Although LMIRT's provision for bad debt increased
significantly during the pandemic, Fitch believes its collection
improved with easing movement restrictions.
- These assumptions result in a 'RR1' Recovery Rate for the
outstanding senior unsecured bonds. Still, Fitch rates the senior
unsecured bonds at 'CCC+' with a Recovery Rating of 'RR4', as LMIRT
derives its entire economic value from assets located in Indonesia
even though it is incorporated in Singapore. Under its
Country-Specific Treatment of Recovery Ratings Criteria, Indonesia
falls into Group D of creditor friendliness, and instrument ratings
of issuers with assets in this group are subject to a soft cap at
the issuer's IDR and Recovery Rating of 'RR4'.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- LMIRT successfully refinancing its debt maturities over the next
16 months, including the US dollar notes due in June 2024.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Weakening liquidity, evident from an inability to make meaningful
progress in refinancing the bank loans and US dollar notes in a
timely manner.
LIQUIDITY AND DEBT STRUCTURE
Liquidity Insufficient to Meet Debt Maturities: LMIRT's cash
balance of SGD106.7 million at 30 September 2022 will sufficiently
cover SGD35 million of negative free cash flow in 2023, although
Fitch thinks the trust will have to depend on refinancing to meet a
substantial portion of debt maturing over 2023 and 2024. Visibility
on LMIRT shoring up liquidity through asset disposals is limited.
LMIRT breached the interest coverage covenant of 2.5x on its term
loans at end-December 2021, and has obtained waivers up to
end-2022. Fitch expects the trust to comply with the banks'
requirement of minimum interest coverage of 1.5x during the waiver
period. Nonetheless, Fitch thinks the trust will have to seek
rolling waivers from lenders after December 2022, as Fitch does not
forecast LMIRT's interest coverage covenant to improve to more than
2.5x in the next two years.
ISSUER PROFILE
LMIRT is a Singapore-listed REIT, with a portfolio of 22 shopping
malls and seven retail spaces in Indonesia, valued at SGD1.8
billion as of end-September 2022.
ESG CONSIDERATIONS
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 Recovery Prior
----------- ------ -------- -----
Lippo Malls
Indonesia
Retail Trust LT IDR CCC+ Downgrade B-
LMIRT Capital
Pte. Ltd.
senior
unsecured LT CCC+ Downgrade RR4 B-
LJH CONSTRUCTION: Court Enters Wind-Up Order
--------------------------------------------
The High Court of Singapore entered an order on Feb. 10, 2023, to
wind up the operations of LJH Construction & Engineering Co. Pte.
Ltd.
The company's liquidators are:
Chan Yee Hong
CLA Global TS Risk Advisory
80 Robinson Road #25-00
Singapore 068898
SMART AUTOMOBILE: Court to Hear Wind-Up Petition on March 3
-----------------------------------------------------------
A petition to wind up the operations of Smart Automobile Pte Ltd
will be heard before the High Court of Singapore on March 3, 2023,
at 10:00 a.m.
MS First Capital Insurance Limited filed the petition against the
company on Feb. 9, 2023.
The Petitioner's solicitors are:
LVM Law Chambers LLC
160 Robinson Road
#13-02 SBF Center
Singapore 068914
TENGAH ENGINEERING: Court Enters Wind-Up Order
----------------------------------------------
The High Court of Singapore entered an order on Feb. 10, 2023, to
wind up the operations of Tengah Engineering & Hardware 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
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2023. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
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TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
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thereof are US$25 each. For subscription information, contact
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*** End of Transmission ***