/raid1/www/Hosts/bankrupt/TCRAP_Public/230406.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, April 6, 2023, Vol. 26, No. 70
Headlines
A U S T R A L I A
AUSTRALIAN COMMUNITY: Prepares to Sell, Shut Down Titles
BOSS LADY: First Creditors' Meeting Set for April 17
BWX LTD: Commonwealth Bank Appointed KPMG as Receivers
CENTRAL COAST WAVES: First Creditors' Meeting Set for April 13
GATWOOD MANAGEMENT: Second Creditors' Meeting Set for April 13
GLOBAL BUILDERS: First Creditors' Meeting Set for April 14
JUST PAWN: First Creditors' Meeting Set for April 11
LLOYD GROUP: First Creditors' Meeting Set for April 12
METRO FINANCE 2021-1: Moody's Hikes Rating on Class F Notes to Ba2
PORTER DAVIS: New Customers May Lose Deposits, Liquidators Warn
C H I N A
FOSUN INT'L: Citic Unit to Acquire Controlling Stake in Steelmaker
I N D I A
AADINATH POLYFAB: Insolvency Resolution Process Case Summary
AHAN ADD-CHEM: CARE Reaffirms D Rating on INR11.78cr LT Loan
BALAJI LIFESTYLE: Liquidation Process Case Summary
BRIJBASI HI-TECH: CARE Reaffirms B+ Rating on INR8cr LT Loan
CHANDRALOK TEXTILE: ICRA Keeps D Debt Ratings in Not Cooperating
FEEDBACK ENERGY: CARE Moves D Debt Ratings to Not Cooperating
FEEDBACK INFRA: CARE Moves D Debt Ratings to Not Cooperating
GREENTECH MEGA: ICRA Lowers Rating on INR30cr LT Loan to D
INDEPENDENT TV: Liquidation Process Case Summary
K.R.K. EDUCATIONAL: ICRA Keeps D Debt Rating in Not Cooperating
KABRA JEWEL: CARE Hikes Rating on INR15.33cr LT Loan to BB+
KIRATPUR NER: ICRA Keeps D Debt Rating in Not Cooperating
LANCO MANDAKINI: Bankruptcy Court Approves Statkraft's Plan
MONET VYAPAAR: Liquidation Process Case Summary
PANACHE EXPORTS: ICRA Keeps D Debt Ratings in Not Cooperating
RAJ RATAN: ICRA Keeps C+/A4 Debt Ratings in Not Cooperating
RELIANCE CAPITAL: Lenders Postpone 2nd Auction to April 11
RELIANCE POWER: ICRA Keeps D Debt Ratings in Not Cooperating
RELIGARE FINVEST: ICRA Reaffirms D Rating on INR909.7cr Loans
RPK STEELS: Insolvency Resolution Process Case Summary
S P CONSTRUCTION: CARE Reaffirms B+ Rating on INR2cr LT Loan
SABAR COTTON: CARE Reaffirms B+ Rating on INR12.35cr LT Loan
SAISONS TRADE: ICRA Keeps D Debt Ratings in Not Cooperating
SAVFAB DEVELOPERS: ICRA Keeps D Debt Rating in Not Cooperating
THAZHAYIL FINANCE: CARE Reaffirms B+ Issuer Rating
UFM INDUSTRIES: CARE Lowers Rating on INR7cr LT Loan to BB-
VISHNU ENTERPRISES: CARE Lowers Rating on INR30cr Loan to D
N E W Z E A L A N D
86 AUTO: Court to Hear Wind-Up Petition on April 17
GOLDEN 5R: Creditors' Proofs of Debt Due on May 5
MY TREAT: Creditors' Proofs of Debt Due on May 6
PORSE EDUCATION: Court to Hear Wind-Up Petition on May 5
SHARDEN HOLDINGS: Creditors' Proofs of Debt Due on April 29
P A K I S T A N
PAKISTAN: Hikes Key Interest Rate to Record 21%
S I N G A P O R E
APPLECART INVESTMENTS: Final Meeting Set for May 2
ASIA HOSPITALITY: Members' Final Meeting Set for May 2
CMIDF JALANDHAR: Final Meeting Set for May 5
INTER-PACIFIC PETROLEUM: Trial in Suit vs. Former Director Starts
SARMENT PTE: Final Meeting Set for May 2
TRANSFORMER I: Members' Final Meeting Set for May 2
- - - - -
=================
A U S T R A L I A
=================
AUSTRALIAN COMMUNITY: Prepares to Sell, Shut Down Titles
--------------------------------------------------------
The Sydney Morning Herald reports that Antony Catalano and Alex
Waislitz's newspaper business is preparing to sell or shut down
more than 13 mastheads as the company combats rising print costs
and a slump in the advertising market.
Australian Community Media, the publisher of titles such as The
Canberra Times, The Newcastle Herald and The Land, is asking staff
to take their annual leave over Easter, a move which will reduce
costs but also leave a skeleton staff for the days after the break,
SMH says.
In an email sent to staff on April 3, seen by SMH, ACM managing
director Tony Kendall told staff the business was in the process of
selling seven titles in the NSW central-west and south-west regions
after receiving an approach by Provincial Press Group.
Titles in this area include the Forbes Advocate, Parkes
Champion-Post, The Grenfell Record, Cowra Guardian, Boorowa News,
Canowindra News and The Young Witness, SMH discloses. The agreement
has been signed and transition should be by the end of the month.
This would add to titles in South Australia and Queensland which
were sold to regional newspaper company The Star Group last
Saturday [April 1].
According to SMH, Mr. Kendall also told staff he planned to shut
down Queensland community titles the Jimboomba Times and Redlands
City Bulletin and four Western Australian titles including the
Bunbury Mail, the Mandurah Mail and the August-Margaret River Mail.
The Queensland titles have already shut and are closing for good
while the Western Australian titles are going to digital-only by
the end of the month.
SMH says the closures will be completed by April 30 and are
indicative of the ongoing pressure regional media companies face in
generating cash from advertisers and subscribers. This is not the
first time ACM has closed newspapers. In 2020, following a
temporary suspension of print publications, Mr. Catalano
permanently closed a number of regional titles.
Mr. Kendall told staff the company was narrowing its focus to more
profitable titles to ensure the continued growth of the business.
"While it may seem from these changes that ACM is in decline, let
me be clear that this is not the case," he said.
Mr. Catalano told SMH the core of the business was strong.
"We continue to invest," the report quotes Mr. Catalano as sayingd.
"Regrettably some smaller publications were at best break even
before we bought the business, and the reality of an 80 per cent
increase in paper costs and a significant drop in government spend
made them completely unsustainable in print form."
In another email sent to staff on April 1, Mr. Kendall told
employees the organisation wanted as many people as possible to
take annual leave to "enjoy an extended six-day Easter weekend".
"ACM is aiming to operate on a skeleton staff for the days
immediately after the break," he said.
SMH adds that the same approach is set to be implemented the day
before the Anzac Day public holiday, as Mr. Kendall said it was "an
opportunity to use one day of annual leave to have a four-day
weekend.
"It is important that we closely manage our leave liabilities, but
it is equally important that our team members get every chance to
rest and recharge," he said.
Mr. Catalano, a real-estate entrepreneur and former CEO of Domain
Group, bought ACM from Nine (the owner of SMH) in 2018 for AUD115
million. The acquisition, which was backed by billionaire Alex
Waislitz, involved 170 newspaper titles and a large amount of
property in regional and capital cities. In 2023, ACM operates
about 100 publications and has significantly reduced its property
portfolio from 26 print plants and buildings across the country to
just six.
The Canberra Times office on the corner of Pirie and Newcastle
streets, which was the crown jewel of the portfolio, was sold in
December for about AUD20 million, SMH recalls.
BOSS LADY: First Creditors' Meeting Set for April 17
----------------------------------------------------
A first meeting of the creditors in the proceedings of Boss Lady
Holdings Pty Ltd, trading as 'Giant Finance Group' and 'Asset
Partners Realty', will be held on April 17, 2023, at 3:00 p.m. at
the offices of Westburn Advisory at Level 5, 115 Pitt Street in
Sydney.
Shumit Banerjee of Westburn Advisory was appointed as administrator
of the company on April 3, 2023.
BWX LTD: Commonwealth Bank Appointed KPMG as Receivers
------------------------------------------------------
The Sydney Morning Herald reports that the Commonwealth Bank
appointed receivers to the collapsed BWX business on April 4, as
Zoe Foster Blake attempts to buyback control of her Go-To business
for a fraction of the AUD89 million she was paid in 2021.
The ASX-listed cosmetics group appointed administrators on Monday
evening [April 3] over the Australian business.
SMH says BWX shareholders, including billionaire Andrew Forrest,
will likely be wiped out by the collapse. Mr. Forrest's investment
group Tattarang acquired AUD36 million worth of shares less than a
year ago, giving it a 19.9 per cent stake.
According to SMH, CBA appointed receivers from KPMG to recover its
AUD100 million secured loan on April 4. The bank ensured BWX's
collapse when it declined to extend waivers on its debt covenants
beyond Friday, March 31, and the company failed to find fresh
backers.
In a statement to the ASX, BWX said KPMG Australia's David Hardy,
Gayle Dickerson, James Stewart and James Dampney have been
appointed receivers over the Australian business and have taken
over day-to-day control of the business, SMH discloses.
This includes its Sukin, Andalou Natural and Mineral Fusion brands,
but not Foster Blake's Go-To or the US business.
"As receivers, our initial focus will be on stabilising the
operations of these much-loved brands, before commencing an orderly
sale process. We will be working with all stakeholders, including
employees, suppliers, partners and customers, to maximise the
outcome for all parties," SMH quotes KPMG's Hardy as saying.
The receivers said employee entitlements are not at risk and will
be paid normally through the receivership process, SMH relays.
According to SMH, BWX had been in the process of organising the
sale of assets, including its 50.1 per cent stake in Go-To, with a
group led by Foster Blake, one of two parties bidding for the
assets.
BWX paid AUD89 million for its Go-To shares in December 2021.
Foster Blake and her management team have the option of selling the
remainder of their shares to BWX for AUD59.2 million cash as early
as next year. It is one of the liabilities that weighed on the
share price of the cash-strapped BWX.
Foster Blake had offered to buy back the majority stake for as
little as AUD20 million, according to sources involved in the
negotiations, SMH relays.
SMH says the BWX board had appointed the administrators, led by FTI
Consulting's Kate Warwick, on April 3 to keep BWX trading and
continue the sales process for its Go-To stake and the US
business.
"A range of issues has continued to impact the Australian
operations of BWX, including customer destocking and inventory and
working capital issues necessitating the Director's decision to
appoint administrators," the BWX board said on April 3 in a
statement to the ASX.
"The directors believe entering voluntary administration will help
progress the restructuring process already underway with new
management at BWX and give the company the best chance of future
profitability. The directors will work with the administrators to
ensure a positive outcome in the administration, with employees and
customers remaining a top priority."
The administrators are expected to continue the sales process of
the Go-To and US businesses, SMH says.
BWX Limited manufactures body, hair and skin care products. The
Company produces and distributes moisturizers, oils, lotions,
scrubs, creams and other related products.
CENTRAL COAST WAVES: First Creditors' Meeting Set for April 13
--------------------------------------------------------------
A first meeting of the creditors in the proceedings of Central
Coast Waves Basketball Association Incorporated will be held on
April 13, 2023, at 10:00 a.m. at The Kendal's Meeting Room, Central
Coast Leagues Club, 1 Dane Drive in Gosford and via
teleconference.
Amanda Lott of Australian Corporate Rehabilitation & Insolvency
Solutions was appointed as administrator of the company on March
30, 2023.
GATWOOD MANAGEMENT: Second Creditors' Meeting Set for April 13
--------------------------------------------------------------
A second meeting of creditors in the proceedings of Gatwood
Management Pty Ltd and Ibar Project Management Pty Ltd has been set
for April 13, 2023 at 11:00 a.m. and 12:00 pm respectively, at the
offices of O'Brien Palmer at Level 9, 66 Clarence Street in Sydney
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 April 12, 2023 at 4:00 p.m.
Daniel Frisken of O'Brien Palmer was appointed as administrator of
the company on March 7, 2023.
GLOBAL BUILDERS: First Creditors' Meeting Set for April 14
----------------------------------------------------------
A first meeting of the creditors in the proceedings of Global
Builders Warehouse Pty. Ltd. will be held on April 14, 2023, at
11:30 a.m. via teleconference facilities.
Stephen Dixon of Hamilton Murphy Advisory was appointed as
administrator of the company on March 31, 2023.
JUST PAWN: First Creditors' Meeting Set for April 11
----------------------------------------------------
A first meeting of the creditors in the proceedings of Just Pawn It
Pty Ltd will be held on April 11, 2023, at 10:30 a.m. via virtual
meeting.
Brendan Copeland and Michael Hogan of HoganSprowles were appointed
as administrators of the company on March 28, 2023.
LLOYD GROUP: First Creditors' Meeting Set for April 12
------------------------------------------------------
A first meeting of the creditors in the proceedings of:
- Lloyd Group Investments Pty Ltd;
- Lloyd Group Holdings Pty Ltd;
- Lloyd Group Properties Pty Ltd;
- Lloyd Group (NSW) Pty Ltd;
- Lloyd Group (Vic) Pty Ltd; and
- Lloyd Group Pty Ltd
will be held on April 12, 2023, at 10:00 a.m. via virtual meeting
only.
Sam Marsden, Jason Tracy, Salvatore Algeri and Timothy Norman of
Delloite were appointed as administrators of the company on March
31, 2023.
METRO FINANCE 2021-1: Moody's Hikes Rating on Class F Notes to Ba2
------------------------------------------------------------------
Moody's Investors Service has upgraded the ratings on eight classes
of notes issued by two Metro Finance ABS.
The affected ratings are as follows:
Issuer: Metro Finance 2020-2 Trust
Class B Notes, Upgraded to Aaa (sf); previously on Oct 14, 2021
Upgraded to Aa1 (sf)
Class C Notes, Upgraded to Aa1 (sf); previously on May 20, 2022
Upgraded to Aa2 (sf)
Class D Notes, Upgraded to Aa3 (sf); previously on May 20, 2022
Upgraded to A1 (sf)
Class E Notes, Upgraded to Baa1 (sf); previously on May 20, 2022
Upgraded to Baa2 (sf)
Issuer: Metro Finance 2021-1 Trust
Class C Notes, Upgraded to Aa2 (sf); previously on May 20, 2022
Upgraded to Aa3 (sf)
Class D Notes, Upgraded to A1 (sf); previously on May 20, 2022
Upgraded to A3 (sf)
Class E Notes, Upgraded to Baa2 (sf); previously on May 20, 2022
Upgraded to Baa3 (sf)
Class F Notes, Upgraded to Ba2 (sf); previously on May 20, 2022
Upgraded to Ba3 (sf)
RATINGS RATIONALE
The upgrades were prompted by an increase in credit enhancement
available for the affected notes and the good collateral
performance to date.
Metro Finance 2020-2 Trust
Following the February 2023 payment date, the credit enhancement
available for the Class C, Class D and Class E Notes has increased
to 14.9%, 11.1% and 5.7%, respectively, from 11.4%, 8.5% and 4.3%
as of the last rating action in May 2022. The credit enhancement
available for the Class B Notes has increased to 20.1% from 12.2%
as of the last rating action in October 2021.
As of end-January, 0.17% of the outstanding pool was 30-plus day
delinquent, and 0.05% was 90-plus day delinquent. The portfolio has
incurred gross and net losses of 0.17% and 0.07% (as a percentage
of the original pool balance) to date, all of which have been
covered by excess spread.
Based on the observed performance to date and loan attributes,
Moody's has maintained its expected default assumption at 2.25% as
a percentage of the current pool balance (equivalent to 1.11% as a
percentage of original pool balance).
Moody's has maintained the Aaa portfolio credit enhancement at
15%.
Metro Finance 2021-1 Trust
Following the February 2023 payment date, the credit enhancement
available for the Class C, Class D, Class E and Class F Notes has
increased to 10.2%, 7.6%, 3.8% and 2.6% respectively, from 7.2%,
5.4%, 2.7% and 1.9% as of the last rating action in May 2022.
As of end-January, 0.2% of the outstanding pool was 30-plus day
delinquent, and 0.07% was 90-plus day delinquent. The portfolio has
incurred gross and net losses of 0.11% and 0.03% (as a percentage
of the original pool balance) to date, all of which have been
covered by excess spread.
Based on the observed performance to date and loan attributes,
Moody's has lowered its expected default assumption to 2.25% as a
percentage of the current pool balance (equivalent to 1.36% of the
original pool balance), compared with 2.9% in May 2022.
Moody's has maintained the Aaa portfolio credit enhancement at
15%.
Moody's analysis has also considered various scenarios involving
different mean default rates and default timings to evaluate the
resiliency of the note ratings.
The transactions are a cash securitisation of auto loans and leases
originated by Metro Finance Pty Limited and extended to prime
commercial obligors located in Australia.
The principal methodology used in these ratings was "Moody's Global
Approach to Rating Auto Loan- and Lease-Backed ABS" published in
November 2022.
Factors that would lead to an upgrade or downgrade of the ratings:
Factors that could lead to an upgrade of the ratings include (1)
performance of the underlying collateral that is better than
Moody's expectations, and (2) an increase in the notes' available
credit enhancement.
Factors that could lead to a downgrade of the ratings include (1)
performance of the underlying collateral that is worse than Moody's
expectations, (2) a decrease in the notes' available credit
enhancement, and (3) a deterioration in the credit quality of the
transaction counterparties.
PORTER DAVIS: New Customers May Lose Deposits, Liquidators Warn
---------------------------------------------------------------
The Sydney Morning Herald reports that liquidators of collapsed
construction firm Porter Davis have warned that some new customers
could lose thousands of dollars from deposits because they were not
insured, as the first meeting called by the administrators was
swamped with questions from affected customers.
Hundreds of Porter Davis customers joined an online meeting on
April 4, organised by liquidators Grant Thornton. Interest in the
webinar from customers affected by the company's collapse was so
high that many callers were denied access.
According to SMH, the liquidators said at the meeting that newer
clients of Porter Davis may have been uninsured, with many
potentially having lost their entire deposit because the company
did not take out insurance for new builds until planning permits
were obtained, sometimes weeks or months after customers had signed
a contract.
"There are a number of customers who have fallen into that gap
between paying a deposit and work not yet starting on their site
because they're waiting for permits, who may not have insurance
cover," SMH quotes Grant Thornton liquidator Said Jahani as
saying.
Porter Davis, Australia's 12th largest home builder, left 1,700
homes unfinished in Victoria and Queensland when it collapsed last
Friday [March 31], abruptly halting work on all sites as
liquidators laid off employees and began investigating the
financial cause of its sudden implosion, according to SMH.
SMH says Richard Williams, a Porter Davis customer, paid a 5 per
cent deposit of AUD40,000 and signed a new home contract in
February after being reassured by Porter Davis staff that he was
covered for domestic building insurance.
SMH relates that Mr. Williams said he was shown a certificate of
currency for construction and liability that he was told covered
him and his partner for domestic building insurance.
"That was false. They blatantly lied to us. We lose everything. We
won't get any money back," SMH quotes Mr. Williams as saying.
"Because there was so much paperwork at the time I didn't twig."
According to the report, the liquidators said they are working with
state insurer's home warranty schemes to get solutions for
customers as quickly as possible, urging affected homeowners to
check and file insurance claims through the Victorian Managed
Insurance Authority or the Queensland Building and Construction
Commission.
"That [claims] process can take several months," Mr. Jahani said.
SMH says the 500 homeowners able to dial in or connect to the
online meeting on April 4 were told by Mr. Jahani that there is
"strong interest" from other building companies willing to take
over Porter Davis' home building contracts.
"Given the size and scale and complexity of this liquidation, you
will need to bear with us, and you will need to be patient because
we don't have all the answers for you quite yet," Mr. Jahani told
the home builder's customers.
"By the same token, I also want to say how incredibly frustrating
it must be for customers. We do understand how emotionally charged
and how difficult it is for a lot of you to be facing this
situation where your builder has gone into liquidation, and you're
in a position where you don't know what to do."
Porter Davis' unfinished homes are at various stages of completion,
with some customers just having signed contracts and others nearing
lock-up, but about 240 houses are almost ready to be handed over to
their owners.
"We're also looking at a number of builds which are in final stages
of completion, to see whether there is an efficient and effective
way to get those customers into their houses as quickly as
possible," Mr. Jahani added.
He warned that Porter Davis' size and complexity meant the
liquidation process could take several years to complete, SMH
relays.
SMH relates that Mr. Jahani said there was strong interest from a
number of potential buyers and reputable builders in taking over
parts of Porter Davis, including customer contracts. "We expect
that within the next week, we'll be in the position to provide some
clarity to customers around the outcome of that sales process," he
said.
The liquidators are also investigating whether Porter Davis'
directors can be held personally liable for incurring debts when
the company was insolvent, a fact that is not yet determined, the
report relays.
They said the reasons behind Porter Davis' collapse were
"well-documented industry issues" including rising input prices,
rising cost of trades and the lack of availability of trades
against a backdrop of fixed-price contracts signed months or years
earlier.
SMH adds the liquidators confirmed that some contractors, suppliers
and other parties had been getting unauthorised access to
construction sites.
"They've been doing this without our permission and against our
advice," Mr. Jahani said. "We understand that the access has meant
that in some cases, equipment or fitting has been removed. I will
say to [these people] that you're not damaging Porter Davis, you're
actually damaging the customers here. There is criminal liability
for unauthorised access."
Grant Thornton said it will give an initial report to creditors and
further details of its nationwide investigation on or around April
18, SMH relays.
=========
C H I N A
=========
FOSUN INT'L: Citic Unit to Acquire Controlling Stake in Steelmaker
------------------------------------------------------------------
Caixin Global reports that a firm owned by state-owned heavyweight
Citic Ltd. is set to acquire a controlling stake in a major Chinese
steelmaker, edging out rival bidder Jiangsu Shagang Group Co. Ltd.
that had signed a deal earlier last month to acquire the asset from
owner Fosun International Ltd.
Following a last-minute bid, Citic unit Hubei Xinyegang Steel Co.
Ltd. will pay CNY13.58 billion (US$2 billion) to acquire the 60%
stake in Nanjing Nangang Iron & Steel United Co. Ltd, Caixin
relates. The money will be paid in phases, with the first
installment set to be made on April 4, according to a Sunday [April
2] announcement from Citic. A total of about CNY13 billion will be
paid by Citic within a week, sources familiar with the deal told
Caixin.
About Fosun International
Fosun International Limited provides diversified services. The
Company offers products and services for families in health,
happiness, and wealth businesses. Fosun International serves
clients worldwide.
As recently reported in the Troubled Company Reporter-Asia Pacific,
Moody's Investors Service has downgraded to B2 from B1 the
corporate family rating of Fosun International Limited. At the same
time, Moody's has also downgraded to B2 from B1 the senior
unsecured bonds issued by Fortune Star (BVI) Limited and
unconditionally and irrevocably guaranteed by Fosun. Moody's has
changed the outlook on all ratings to negative from ratings under
review. This concludes the review for downgrade initiated on
September 30, 2022.
"The downgrade reflects Fosun's weak liquidity, recent fast and
significant decline of the market value of its listed assets which
erodes its funding headroom, and the execution risk related to the
company's fundraising plans amid capital market volatility and
prevalent risk averse sentiment. Moody's are also concerned that
accelerated divestments or pledge of good quality assets will lead
to a faster-than-expected weakening of Fosun's portfolio size and
quality, as well as its financial flexibility, which no longer
supports its previous B1 rating," says Lina Choi, a Moody's Senior
Vice President.
The negative outlook reflects the refinancing uncertainties and
execution risks of asset sales to repay Fosun's sizable debt
maturing over the next 12 months, and the company's ongoing
challenges in balancing liquidity needs and maintaining its
investment portfolio quality.
=========
I N D I A
=========
AADINATH POLYFAB: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Aadinath Polyfab Private Limited
Plot No H-25, Addl. M.I.D.C,
Industrial Area Kudavali Village, Murbad,
Dist-Thane Murbad MH-421401
Insolvency Commencement Date: February 24, 2023
Estimated date of closure of
insolvency resolution process: August 30, 2023 (180 Days)
Court: National Company Law Tribunal, Mumbai Bench
Insolvency
Professional: Mr. Ashutosh Baliarsing
B202, Gundecha Heights LBS Marg,
Kanjurmarg (W), Mumbai 400078
Email: ashutoshsb@gmail.com
Last date for
submission of claims: March 16, 2023
AHAN ADD-CHEM: CARE Reaffirms D Rating on INR11.78cr LT Loan
------------------------------------------------------------
CARE Ratings has reaffirmed ratings on certain bank facilities of
Ahan Add-Chem Private Limited (AACPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 11.78 CARE D Reaffirmed
Rationale and key rating drivers
The reaffirmation in the long-term rating assigned to the bank
facilities of AACPL primarily due to delays in debt servicing owing
to poor liquidity position of the company during FY22 (FY refers to
April 1 to March 31).
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Delay free track record of 90 days in servicing of debt
obligations coupled with improvement liquidity position of the
company.
Analytical approach: Standalone
Outlook: Not Applicable
Key Weaknesses
* Delays in Debt servicing: There are ongoing delays in repayment
of term loan. Besides, there have been instances of overdrawing of
working capital limits, which got regularised within a period of 30
days. The delays in debt servicing are on account of poor liquidity
as a result of decrease in overall income of the company due to
discontinuation of one order.
Liquidity: Poor
The liquidity position of the company remained poor marked by full
utilization of its working capital limits. There were multiple
instances of overdrawings in CC limits however the same are
regularized within 30 days. The company has negligible cash and
bank balance as well as inadequate cash accruals to meet its debt
repayment obligations and is thus heavily reliant of fund
infusion by its promoters. The promoters have infused funds worth
INR7.31 crore during FY22 and in current year also infused
unsecured loan to support the business operations.
Vadodara (Gujarat) based Ahan Add Chem Private Limited was
incorporated in 2010 by Mr. Rakesh Saraiya, Mr Kamlesh Shah, and
Mrs. Malini Sanghvi. The company was incorporated to undertake
manufacturing of organic chemicals (intermediate chemicals) which
are used in Pharmaceuticals, Chemical and Agrochemical industries.
The company had commenced its commercial operation from May 2018
onwards. AACPL is operating from its sole manufacturing unit
located at Padra, Dist. Vadodara, Gujarat having installed capacity
of plant is 828 MT per annum for manufacturing of organic
chemicals.
BALAJI LIFESTYLE: Liquidation Process Case Summary
--------------------------------------------------
Debtor: Balai Lifestyle Technologies Private Limited
S-9, III Floor, Shubham Tower,
Shastri Nagar, Jaipur - 302016
Liquidation Commencement Date: March 16, 2023
Court: National Company Law Tribunal, Jaipur Bench
Liquidator: Jai Prakash Rawat
22-B, New Colony, Chandni Chowk,
Jhotwara, Jaipur, Rajasthan – 302012
Email: ipjprawat@gmail.com
Email: cirp.balaji@gmail.com
Last date for
submission of claims: April 16, 2023
BRIJBASI HI-TECH: CARE Reaffirms B+ Rating on INR8cr LT Loan
------------------------------------------------------------
CARE Ratings has reaffirmed ratings on certain bank facilities of
Brijbasi Hi-Tech Udyog Limited (BHTUL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 8.00 CARE B+; Stable Reaffirmed
Short Term Bank
Facilities 10.00 CARE A4 Reaffirmed
Rationale and key rating drivers
The ratings assigned to the bank facilities of BHTUL continues to
be constrained by small scale of operation with losses, leveraged
capital structure and weak debt coverage, elongated operating
cycle, and stretched liquidity FY22 (Audited, refers to period
April 1 to March 31). The rating also factors in the company's
modest orderbook position as well as the competitive and tender
driven nature of business. The rating, however, derives strengths
from the vast experience of the directors.
Rating Sensitivities: Factors likely to lead to rating actions
Positive Factors
* Increase in the total operating income (TOI) of the company above
INR50.00 crore on sustained basis
* Improvement in operating cycle to below 100 days on sustained
basis.
Negative Factors
* Any incremental borrowing leading to deterioration in capital
structure as marked by overall gearing of more than 2.50x
* Elongation in collection days beyond 300 days putting stress on
liquidity
Analytical approach: Standalone
Outlook: Stable
The 'Stable' outlook on the ratings of BHTUL reflects CARE's
expectation that the company will continue to benefit from the
established relationship with its customers.
Key Weaknesses
* Small scale of operations with losses reported in FY22: The scale
of operations of the company continued to remain small and declined
on the back of lower order execution during FY22. Further, given
the order-based business model of the company; revenue is also
impacted on account of delayed realization of payments by customers
most of whom are government entities, as time is taken for thorough
inspection of the vehicles postdelivery by BHTUL. Thus, TOI stood
at INR15.37 crore as compared to INR18.56 crore during FY21. During
the year the company wrote off bad debts amounting to INR1.76 crore
due from various entities of Jaypee Group which had an impact on
its profitability. Additionally, the profitability margins of BHTUL
are directly associated with the technical aspect of the contract.
Further, the profitability varies with the project due to the
tender driven nature of the business owing to varying margins in
the different projects undertaken by the company.
Thus, owing to lower revenue from operations, bad debt write offs
and stable finance and depreciation costs, the company reported an
operating loss as well as a net loss which stood at INR0.21 crore
and INR1.94 crore respectively as compared to an operating profit
and net profit of INR1.94 crore and Rs 0.18 crore during FY21.
Further, the company also reported a cash loss (GCA) of INR1.82
crore during FY22 as against a cash profit of INR0.36 crore during
FY21. Owing to losses incurred during FY22, the company debt
coverage stood weak.
* Leveraged capital structure and weak coverage indicators:
Despite the decline in overall debt owing to repayment of Covid
loans; the capital structure of the company continues to remain
leveraged on back of higher working capital borrowing as on balance
sheet date with moderate networth base as denoted by an overall
gearing of 2.62x as on March 31, 2022 as against 2.53x as on March
31, 2021. As on March 31, 2022, the debt profile
of the company comprises of term loans of INR0.21 crore, working
capital bank borrowings of INR10.30 crore and unsecured loans from
directors worth INR3.96 crore (P.Y.: INR3.33 crore). Further,
tangible networth was moderate at INR5.56 crore as on March 31,
2022. Owing to losses incurred during FY22, the company debt
coverage stood weak.
* Modest Order book position: As on March 20, 2023, the company has
an unexecuted order book position of INR10.83 crore (0.70x of TOI
of FY22) received from various reputed private customers reflecting
a modest order book position. Out of the above, the company expects
to complete additional orders worth INR2.68 crore by end of March
2023 and the rest during the first six months of FY24. Thus,
translating into short term revenue visibility.
* Elongated operating cycle: The operating cycle of BHTUL further
elongated to 504 days in FY22 as against 448 days in FY21 on
account of blockage of funds in inventory and receivables.
Collection days and inventory holding period remained 337 days and
276 days respectively in FY22. High inventory days are the result
of varied range of fire fighting vehicles offered by BHTUL to meet
the customers' demand, which also necessitates maintaining of
adequate inventory in form of raw material for smooth running of
its production process. BHTUL's high collection period is owing to
long clearance process with the government departments with regards
to clearance of bills raised to customers. The company procures raw
material from traders and manufactures located in overseas and
domestic market and enjoys a credit period of 3-4 months resulting
in an average creditor period of 109 days in FY22.
* Competitive and tender driven nature of business: BHTUL operates
in a competitive market for fire-fighting vehicles marked by the
presence of number of players in the unorganized sector and
organized sector. The company majorly supplies fire-fighting
vehicles to public and private sector entities as well defense
sector entities such as the Indian Navy. Orders for the products
are awarded through tender-based system. Thus, exposing the company
to risks associated with tender-based business, which is
characterized by intense competition. The growth of business
depends on its ability to successfully bid for the tenders and
emerge as the lowest bidder. Furthermore, any changes in the
procurement policy or government organization's spending on
firefighting are likely to affect the revenues of the company.
Key Strengths
* Experienced and resourceful promoters: Mr. Mahesh Chandra
Agrawal, Mr. Suresh Chandra Agarwal and Mr Rajesh Kumar Agrawal are
directors of the company, having more than four decades of
experience in the manufacturing industry. The company's overall
operations are managed by Mr Mahesh Chandra Agrawal. Mr Suresh
Chandra Agarwal and Mr Rajesh Kumar Agrawal look over supply chain
and marketing division.
Liquidity: Stretched
High inventory days are the result of varied range of fire fighting
vehicles offered by BHTUL to meet the customers' demand, which also
necessitates maintaining of adequate inventory in form of raw
material for smooth running of its production process. BHTUL's high
collection period is owing to long clearance process with the
government departments with regards to clearance of bills raised to
customers. The company procures raw material from traders and
manufactures located in overseas and domestic market and enjoys a
credit period of 3-4 months resulting in an average creditor period
of 109 days in FY22.
Hence, the liquidity position of the company remained stretched as
marked by highly utilized working capital limits to the extent of
~95% during the past 12 months ending February 28, 2023.
However, the company had unencumbered cash & bank balances of
INR2.31 crore as on March 31, 2022 and reported a positive cash
flow from operations (CFO) of INR5.81 crore as at the end of FY22
compared to a negative CFO of INR1.07 crore owing to higher
realization of receivables.
Mathura-based (Uttar Pradesh) Brijbasi Hi-Tech Udyog Limited
(BHTUL) incorporated in 1993 by Mr Mahesh Chandra Agrawal, Mr
Suresh Chandra Agrawal and his family members. The company is
engaged in the manufacturing and assembling of fire fighting
vehicles viz. fire vans, water tenders, water bourses, foam tender,
DCP tenders, crash fire tenders. BHTUL is selling its product under
its own brand name i.e., "Brijbasi". Hot Rolled (HR), Cold Roll
(CR) coil, Aluminium sheet, diesel engine etc. are key raw material
for the manufacturing and assembling of fire fighting vehicles. The
company procures HR/CR coil from the traders located in the
Delhi–NCR. Furthermore, company procures equipment from
intermediaries such as Idex India, MCD (France). The company's
operations are mainly order based and orders are acquired through
the process of tender.
CHANDRALOK TEXTILE: ICRA Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
ICRA has retained the long-term rating for the bank facilities of
Chandralok Textile Industries Private Limited in the 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER
NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 9.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term– 0.32 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Chandralok Textile Industries Private Limited, incorporated in
2003, is in the business of processing grey cloth for the
production of fabric used in making suitings, shirtings and dress
materials. The company's registered office is in Mumbai and its
manufacturing unit is in Bhiwandi (Maharashtra). Mr. Chandramohan
Chaudary is the key director of the company, with more than four
decades of experience in the textile industry.
FEEDBACK ENERGY: CARE Moves D Debt Ratings to Not Cooperating
-------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Feedback
Energy Distribution Company Limited (FEDCO) to Issuer Not
Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 209.68 CARE D; ISSUER NOT COOPERATING
Facilities Rating moved to ISSUER NOT
COOPERATING category
Long Term/ 49.00 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating moved to
Bank Facilities ISSUER NOT COOPERATING category
Short Term Bank 60.00 CARE D; ISSUER NOT COOPERATING;
Facilities Rating moved to ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. has been seeking information from FEDCO to
monitor the ratings vide email communications/letters dated January
12, 2023, Feb. 1, 2023, February 28, 2023, March 21, 2023 and
numerous phone calls. However, despite our 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. The rating on FIPL's bank
facilities and instruments 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 ratings. The ratings continue to take into account the
delays in debt servicing obligation attributable to poor liquidity
position of the company and the account has been classified as NPA
by lenders.
Analytical approach: Standalone
Detailed description of the key rating drivers
At the time of last rating on April 5, 2022, the following was the
rating weakness (updated for the best available information)
Key weaknesses
* Weak financial performance and poor liquidity position: The
liquidity position of the company continues to remain poor on
account of weak financial performance, leading to ongoing delays in
debt servicing. Total operating income of the company further
declined by ~36% in FY22 to INR126.47 crore in FY22 from INR197.15
crore in FY21. Company reported operating loss of INR22.78 crore in
FY22 as against operating loss of INR57.94 crore in FY21. Company
reported net loss of INR102.41 crore as against net loss of
INR181.54 crore in FY21. Company is in discussion with lenders for
the debt resolution options for the entire debt of the company with
options of OTS or revised debt restructuring proposal.
Key strengths
* Experience of parent company and management team in
infrastructure services: The Company belongs to the Feedback Infra
Group and is a wholly owned subsidiary of FIPL. FIPL is an
integrated infrastructure services provider offering design and
engineering consultancy, project management, operations &
management as well as asset improvement services. The board members
include persons having vast experience in the field of
infrastructure management and advisory.
Liquidity: Poor
The liquidity profile of the company remained poor as reflected by
delay in debt servicing. Company has reported negative GCA in FY21
& FY22. The current ratio of the company also remained low at 0.17x
as on March 31, 2022 (PY: 0.47x).
FEDCO is a wholly owned subsidiary of FIPL and is operating a
distribution franchisee business at four divisions in Meghalaya and
Tripura each and executes projects pertaining to Network Roll out
Implementation (NRI). The scope of work under operating
distribution franchisee business includes consumer metering,
billing and revenue collection as well as network operations &
maintenance. Furthermore, the scope of work also includes
automation of metering facility of sub stations, feeders and high
value consumers as well as introduction of smart metering into the
area. The above scope of work carried by FEDCO is to increase
billing and collection efficiency. FEDCO envisages extending the
model to other regions across country.
FEEDBACK INFRA: CARE Moves D Debt Ratings to Not Cooperating
------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Feedback
Infra Private Limited (FIPL) to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 273.41 CARE D; ISSUER NOT COOPERATING
Facilities Rating moved to ISSUER NOT
COOPERATING category
Long Term/ 239.00 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating moved to
Bank Facilities ISSUER NOT COOPERATING category
Short Term Bank 22.59 CARE D; ISSUER NOT COOPERATING;
Facilities Rating moved to ISSUER NOT
COOPERATING category
Compulsorily 50.00 CARE D; ISSUER NOT COOPERATING;
Convertible Rating moved to ISSUER NOT
Debentures COOPERATING category
Compulsorily 30.00 CARE D; ISSUER NOT COOPERATING;
Convertible Rating moved to ISSUER NOT
Debentures COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. has been seeking information from FIPL to monitor
the ratings vide email communications/letters dated January 12,
2023, February 1, 2023, February 28, 2023, March 21, 2023 and
numerous phone calls. However, despite our 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. The rating on FIPL's bank facilities and
instruments 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 ratings.
The ratings continue to take into account the delays in debt
servicing obligation attributable to poor liquidity position of the
company and the account has been classified as NPA by lenders.
Detailed description of the key rating drivers
At the time of last rating on April 5, 2022, the following was the
rating weakness (updated for the information available from stock
exchange)
Key weaknesses
* Weak financial performance and poor liquidity position: The
liquidity position of the company continues to remain poor on
account of weak financial performance, leading to ongoing delays in
debt servicing. On a consolidated level, company reported total
operating income of INR651.82 crore in FY22. Company reported
negative PBILDT of INR25.83 crore as against negative PBILDT of
INR34.15 crore in FY21. The net loss reported by the company
amounts to INR257.37 crore in FY22 as against net loss of INR383.09
crore in FY21. Company is in discussion with lenders for the debt
resolution options for the entire debt of FIPL and FEDCO with
options of OTS or revised debt restructuring proposal.
Key strengths
* Experienced management team and long track record of operations:
The founder promoters own 41.16% of FIPL through investment
vehicle, Missions Holdings Private Limited and remaining ownership
lies with banks and financial institutions. The board members
include persons having vast experience in the field of
infrastructure management and advisory. Feedback Infra Group is in
the business of engineering consultancy, design, project
supervision and management consultancy for more than 25 years. The
group is diversified in infrastructure sector with core presence in
transportation, energy, real estate & social infra.
Liquidity: Poor
The liquidity profile of the company remained poor as reflected by
delay in servicing of debt obligations. Company has reported
negative GCA in FY21 & FY22. The current ratio of the company also
remained low at 0.24x as on March 31, 2022 (PY: 0.49x).
Feedback Infra Group, established in 1990, is an integrated
infrastructure services provider offering design and engineering
consultancy, project management, operations & management as well as
asset improvement services. The group is providing services in
various infrastructure segments, viz, transportation (highways,
metro projects etc), energy, real estate and social infrastructure.
While commencing its operations in 1990 through FIPL in the
infrastructure services business, over the years, the group entered
into the operations and maintenance business for power plants and
highways and energy distribution business. FIPL continues to
provide advisory, construction management and engineering services
and is the holding entity for companies that are into the business
for operations & management, power distribution as well as entities
for the international business in infrastructure sector. FIPL's
shareholding includes banks and financial institutions, apart from
the founder promoters' investment through Missions Holdings Private
Limited. FIPL's wholly owned subsidiary FEDCO is operating
distribution franchisee business at four divisions in Meghalaya,
four divisions in Tripura and executes projects pertaining to
Network Roll out Implementation (NRI).
GREENTECH MEGA: ICRA Lowers Rating on INR30cr LT Loan to D
----------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of
Greentech Mega Food Park Private Limited, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 30.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating downgraded from
Term Loan [ICRA]B+ (Stable) and continues
to remain under 'Issuer Not
Cooperating' category
Rationale
The rating downgrade reflects Delay in Debt Repayment as mentioned
in publicly available sources.
The rating is based on limited information on the entity's
performance since the time it was last rated in December 2021. The
lenders, investors and other market participants are thus advised
to exercise appropriate caution while using this rating as the
rating may not adequately reflect the credit risk profile of the
entity, despite the downgrade".
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
GFPL is a special purpose vehicle (SPV) which was incorporated to
undertake a Mega Food Park project in Ajmer district of Rajasthan
under the Ministry of Food Processing Industries (MoFPI)' Mega Food
Parks Scheme. GFPL is promoted by seven entities acting in
individual capacity or body corporate, including CG Foods Pvt.
Ltd., ARG Developers, Mr. Surja Ram Meel, Genus Power
Infrastructures Ltd., Mr. Suresh Aggarwal, Mr. Sunil Bansal and
Kamtech Associates Pvt. Ltd, where CG FoodS Pvt Ltd is the lead
promoter of the entity. The cost of the project is INR113.23 crore,
which is planned to be funded from INR50.00 crore of grant from
MoFPI, INR30.00-crore of term loan and INR33.23- crore of funding
from the promoters.
INDEPENDENT TV: Liquidation Process Case Summary
------------------------------------------------
Debtor: M/s Independent TV Limited
H Block, 1st Floor Dhirubhai Ambani
Knowledge City Navi Mumbai MH 400710
Liquidation Commencement Date: March 17, 2023
Court: National Company Law Tribunal, Mumbai Bench-IV
Liquidator: Anup Kumar
734, Lawyers Chamber Block, Western Wing,
Tis Hazari Court, Delhi-110054
Email: sachanlawanalyst@gmail.com
C-708, I-Thum Tower-C,
Plot No. A-40, Sector 62,
Noida-201301 (UP)
Tel No: 0120-6870711
Email: liq.itvl@gmail.com
Last date for
submission of claims: April 16, 2023
K.R.K. EDUCATIONAL: ICRA Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------------
ICRA has retained the long-term ratings of K.R.K. Educational Trust
in the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]C; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 30 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
K.R.K Educational Trust is an educational and charitable trust
established in 2007 to impart professional education to students in
Tamil Nadu. The trust owns and manages 'OAS Institute of Technology
and Management', situated in Pulivalam Village near Tiruchirapalli,
Tamil Nadu. The trust is promoted by Dr. K.R. Ilanghovan, Mrs. I.
Rajalakshmi and Mr. K. Ramajayam. The trustees have more than 30
years of professional experience. Mr. K.R. Ilanghovan is also the
founder of two technology companies - Omne Agate Systems Private
Limited and OAS Digital Infrastructure Private Limited, which are
mainly engaged in providing solutions to the energy sector.
KABRA JEWEL: CARE Hikes Rating on INR15.33cr LT Loan to BB+
-----------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Kabra Jewel Private Limited (KJPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.33 CARE BB+; Stable Revised from
Facilities CARE BB; Stable
Long Term/ 4.67 CARE BB+; Stable/CARE A4+
Short Term Revised from CARE BB; Stable/
Bank Facilities CARE A4
Rationale and key rating drivers
The revision in ratings assigned to the bank facilities of KJPL
factors volume-backed growth in scale of operations along with
improvement in profitability during FY22 (FY refers to the period
April 1 to March 31) and 11MFY23. The revision also factors
expected growth in operations in the near term on the back of
opening of new stores and increase in gold prices.
The ratings, however, continue to remain constrained on account of
KJPL's leveraged capital structure and modest debt coverage
indicators, its presence in a highly competitive and fragmented
gems & jewellery (G&J) industry and stretched liquidity. The
ratings also factors implementation and scaling up risk associated
with ongoing debt-funded capacity expansion plan.
The ratings continue to derive strength from vast experience of
KJPL's promoters in the G&J industry along with its established
track record of operations in Ahmedabad's jewellery retail.
Rating sensitivities: Factors likely to lead to rating actions:
Positive factors
* Growth in scale of operations while maintaining its PBILDT
margins.
* Improvement in capital structure marked by overall gearing below
1.5x coupled with improvement in debt coverage
indicators.
Negative factors
* Decline in scale of operations to below INR75 crore and
moderation in PBILDT margins to below 6% on a sustained basis.
* Further debt funded capex or significant increase in working
capital requirements, resulting in deterioration in overall gearing
to above 3.50x.
Analytical approach: Standalone
Outlook: Stable
Stable outlook reflects CARE's expectations that company shall be
able to sustain its credit risk profile in near to medium term,
backed by Stable scale of operations and operating profitability.
Detailed description of the key rating drivers:
* Growth in scale of operations and improvement in PBILDT margin:
KJPL's TOI grew by ~113% y-o-y to INR112.06 crore in FY22 (FY21:
INR52.66 crore) backed by recovery in demand post covid especially
in the bridal jewellery segment. Further, during 11MFY23
(provisional), KJPL reported TOI of INR114.40 crore. KHPL's PBILDT
margin improved by 160 bps y-o-y to 10.49% in FY22 due to economies
of scale and improvement in sales realisation. PAT margin too
improved by 293bps y-o-y in FY22 to 4.92% as compared to 1.99% in
FY21.
Key weaknesses
* Leveraged capital structure and modest debt coverage indicators:
The company's capital structure remained leveraged marked by
overall gearing of 2.70x as at FY22 end (FY21 end: 2.68x).
Furthermore, KJPL's debt coverage indicators improved in FY22
marked by interest coverage of 3.18x (FY21: 1.62x) and Total debt /
GCA of 7.56x (FY21: 24.19x) Promotors have infused funds to the
tune of ~Rs. 25 crore till February 2023 to fund inventory procured
for new stores, which commenced operations in June 2022. Any
further expansion of store network and its funding remains crucial
from credit perspective.
* Highly competitive and fragmented gems and jewellery Industry
albeit stable demand outlook: The G&J industry in India is
characterized by the presence of a large number of players with a
higher share from small and unorganised jewellers resulting in high
competitive intensity in jewellery retail sector. Nevertheless,
increasing penetration of organized players who offer greater
variety in terms of product-mix and jewellery design; along with
customer's changing lifestyle, increasing urbanization, growing
trend towards online buying and strategic marketing by the
jewellers is envisaged to increase the share of organized jewellery
retail segment going ahead. However, demand prospects remain stable
with Tier-II and Tier-III cities expected to be the major growth
drivers for the domestic gold jewellery industry. After demand
being impacted during spread of covid, recovery was witnessed in
subsequent months with onset of the festival and wedding season.
Key Strengths
* Experienced promoters with established track record of
operations: KJPL is promoted by Mr. Kailash Kabra and Mrs Jyothi K
Kabra, who has been associated with the G&J industry for more than
two decades. Mr. Kailash Kabra mainly looks after procurement and
marketing and Mrs. Jyothi Kabra looks after designing of jewellery
and administration and training. KJPL has an established track
record of operations in jewellery retail in Ahmedabad and has
expanded its retail presence in last two years by opening new
retail stores in Ahmedabad and Gandhidham. The company focuses on
high-value bridal jewellery segment and its portfolio consist of
Gold Jadtar, Diamond jewellery and Polki Meena jewellery. It's one
store is focussed on silver jewellery.
Liquidity: Stretched
KJPL offers a wide range of designs/offerings to its customers
which results in significant inventory holding at finished goods
level, leading to high working capital intensity of operations.
Thus, the operating cycle of the company remained elongated,
however improved to 160 days in FY22 as against 277 days in FY21.
The company's average utilization of fund-based limit remained
moderate at around 40%-50%, owing to sizable working capital
funding through unsecured loans by promoters. Promotor has also
infused additional funds of INR25 crore as on February 28, 2023 in
the form of unsecured loans as compared to FY22 end and same are
expected to remain in business.
Ahmedabad (Gujarat) based Kabra Jewels Private Limited (KJPL) was
established in July 2010 by Mr. Kailash Kabra and Mr. Jitesh
Malpani in the name of Kabra & Malpani Jewels Private Limited.
Subsequently in May, 2012, the name was changed to 'Kabra Jewels
Private Limited' and Mr. Jitesh Malpani resigned and Mrs. Jyothi
Kabra, wife of Mr. Kailash Kabra, joined as a director of KJPL.
KJPL is engaged in the business of manufacturing and trading of
gold and diamond jewellery which also includes jadau or antique
jewellery made of vilandi and precious Stones, with major focus on
bridal collection. The company mainly deals with more of retail
customers. KJPL has five showrooms Gujarat4. KJPL sells its diamond
and gold jewellery by the brand name of "K.K. Jewels" and sells
loose solitaire by the brand name of "Only Solitaire".
KIRATPUR NER: ICRA Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------
ICRA has retained the Long-Term rating of Kiratpur Ner Chowk
Expressway Limited in the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 1474.86 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Kiratpur Ner Chowk Expressway Limited (KNCEL), promoted by IL&FS
Transportation Networks Limited (ITNL), was incorporated on 12th
February 2012 to implement the project for widening from existing
two lanes to four lanes of Kiratpur to Ner-Chowk Section of NH-21
from Km 73.200 to Km 186.500 in the State of Himachal Pradesh. The
project has been awarded by NHAI as BOT (Toll) on Design Build
Finance Operate & Transfer (DBFOT) basis under National Highway
Development Programme (NHDP) Phase – III with a concession period
of 28 years commencing from the appointment date of November 14,
2013 to November 14, 2041 including a construction period of three
years. The total length of the project stretch is 84.38 km and the
project road is a critical stretch connecting Northern Himachal to
Southern Himachal and passes through Rupnagar district of Punjab
and Bilaspur & Mandi districts of Himachal Pradesh with key places
and settlements like Kiratpur Sahib, Swarghat, Nauni, Bilaspur,
Ghagas, Barmana, Sunder Nagar and Ner Chowk along the stretch.
LANCO MANDAKINI: Bankruptcy Court Approves Statkraft's Plan
-----------------------------------------------------------
The Economic Times reports that an Indian bankruptcy court has
approved Europe's largest renewable energy company Statkraft's
resolution plan for Lanco Mandakini Hydro Energy.
According to ET, lenders including Punjab National Bank, Canara
Bank, Bank of Baroda and Axis Bank will recover INR180 crore
against the secured financial creditors' claim of INR1,311 crore,
entailing a 14% recovery on the sale.
ET says the Allahabad bench of the National Company Law Tribunal
(NCLT) approved the resolution plan and pronounced the order on
March 23.
Lanco Mandakini Hydro Energy Private Limited commenced insolvency
proceedings on June 11, 2020.
MONET VYAPAAR: Liquidation Process Case Summary
-----------------------------------------------
Debtor: Monet Vyapaar Private Limited
9/A/1B, Chetla Road,
Kolkata -700027, West Bengal
Liquidation Commencement Date: March 17, 2023
Court: National Company Law Tribunal, New Delhi Bench
Liquidator: Sudipta Ghosh
8, N.N. Mukherjee 3rd Lane,
Uttarpara, Hooghly -712258
Email: sudipta_ghosh08@yahoo.com
29C, Bentinck Street, 2nd Floor,
Kolkata -700001
Email: liq.monetvyapaar@gmail.com
Last date for
submission of claims: April 16, 2023
PANACHE EXPORTS: ICRA Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has retained the Long-Term and Short-Term rating of Panache
Exports Private Limited in the 'Issuer Not Cooperating' category.
The ratings are denoted as [ICRA]D/[ICRA]D; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 7.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Short-term 21.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Short-term 2.75 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Rating continues to remain under
Others 'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Panache Exports Private Limited, incorporated in 1991, is promoted
by Mr. Puneet Kapur. PEPL is engaged in designing and manufacturing
diamond studded gold jewellery ranging from 9–18 carats. The
product profile includes a variety of fine jewellery such as
earrings, rings, pendants, bracelets, chains, necklaces etc. The
company has two manufacturing units at Lower Parel and at the
Santacruz Electronic Exports Processing Zone in Andheri, Mumbai.
From FY2016, the company has also ventured into trading of diamonds
in the local markets. The company has a subsidiary unit in London,
'House of Panache (UK) Ltd.', to carry out marketing operations in
the European market.
RAJ RATAN: ICRA Keeps C+/A4 Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has retained the Long-term and short-term ratings of Raj Ratan
Smelter Limited in the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA]C+/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ 18.50 [ICRA]C+/[ICRA]A4;
Short Term ISSUER NOT COOPERATING;
Fund Based/ Rating continues to remain
Non Fund under issuer not cooperating
Based-Others category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Raj Ratan Smelter Limited was incorporated by the Khatri family in
2007 and is involved in the manufacture and sale of mild steel
bars. Its plant, located in Kanpur (UP), has a capacity of 36,000
metric tonnes (MT) per annum.
RELIANCE CAPITAL: Lenders Postpone 2nd Auction to April 11
----------------------------------------------------------
Indian Express reports that lenders of debt-ridden Reliance Capital
(RCap) have postponed the second auction to April 11 for which
three suitors have expressed interest to participate.
Earlier, banks had fixed the second auction date as April 4.
According to the report, sources said the bidders who have
confirmed their participation in the second round of auction are
IndusInd International Holdings Ltd (IIHL) of Hinduja Group,
Torrent Investment and Singapore-based Oaktree.
For a fresh round of bidding, the CoC decided to set the base bid
at INR9,500 crore on a Net Present Value basis, with a minimum cash
component of INR8,000 crore.
Indian Express notes that the second round of auction will take
place even as the Supreme Court has fixed the next date for hearing
on the RCap matter in August.
The report relates that the SC has permitted the lenders to go
ahead with further action as per the National Company Law Appellate
Tribunal (NCLAT) order, sources said.
The NCLAT order dated March 2, 2023, provides an option of auction
or negotiation to lenders, which will be subject to its final order
of the SC, the report says. Explaining the rationale behind the
rescheduling of the second auction, sources said, earlier only IIHL
had confirmed its participation but Torrent and Oaktree joined
subsequently.
Therefore, sources said, the Committee of Creditors (CoC) has
decided to give the bidders more time for preparation, as the
competition has gone up.
All the bidders have asked for the resolution plans to be compliant
with the Insolvency and Bankruptcy Code (IBC) and Request for
Resolution Plan (RFRP), as in the earlier auction held on December
21, the bidders’ plans were found to be non-compliant, sources
said.
Bidders want the lenders and administrator to ensure that their
plans, once submitted, should not fail the compliance test, sources
said, adding the CoC has also assured the bidders to consider their
request that no bids outside the auction would be considered,
Indian Express relates.
This will ensure value maximisation for the lenders and
transparency in the bidding process, the report adds.
About Reliance Capital
Headquartered in Mumbai, India, Reliance Capital Limited --
https://www.reliancecapital.co.in/ -- a non-banking financial
company, primarily engages in lending and investing activities in
India, Singapore, and Mauritius. The company operates through
Finance & Investment, General Insurance, Life Insurance, Commercial
Finance, Home Finance, and Others segments. It offers life, health,
and general insurance products; brokerage and distribution
services, including stock broking, wealth management, and third
party distribution; and commercial and home finance services, such
SME, retail, microfinance, renewable, affordable housing, and home
loans, as well as loans against property and construction finance.
The company also provides asset reconstruction, institutional
broking, and proprietary investments services, as well as other
financial and allied services. The company was formerly known as
Reliance Capital & Finance Trust Limited and changed its name to
Reliance Capital Limited in January 1995.
On Nov. 29, 2021, the Reserve Bank of India superseded Reliance
Capital's board following payment defaults and governance issues,
and appointed Nageswara Rao Y as the administrator for the
bankruptcy process, Financial Express said. The regulator also
filed an application for initiation of Corporate Insolvency
Resolution Process (CIRP) against the company before the National
Company Law Tribunal's (NCLT) Mumbai bench.
In an order dated Dec. 6, 2021 of the National Company Law
Tribunal, Mumbai (NCLT), corporate insolvency resolution process
has been initiated against Reliance Capital as per the provisions
of the Insolvency and Bankruptcy Code (IBC), 2016.
Reliance Capital owes its creditors over INR19,805 crore, majority
of the amount through bonds under the trustee Vistra ITCL India,
The Economic Times of India said.
In February 2022, RBI appointed administrator invited EoIs for sale
of Reliance Capital assets and subsidiaries.
RELIANCE POWER: ICRA Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA has retained the rating for the bank facilities of Reliance
Power Limited in the 'Issuer Not Cooperating' category. The rating
is denoted as "[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non-Convertible 795.00 [ICRA]D ISSUER NOT COOPERATING
Debenture (NCD) rating continues to remain
under issuer not cooperating
category
Long-term, 1200.00 [ICRA]D ISSUER NOT COOPERATING
fund-based rating continues to remain
term loans under issuer not cooperating
category
Long-term, 49.00 [ICRA]D ISSUER NOT COOPERATING
fund-based rating continues to remain
term loans under issuer not cooperating
category
Long Term/ 245.00 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
ICRA has been consistently following up with Reliance Power Limited
for obtaining the monthly no-default statement and had also placed
the ratings under review due to non-submission of NDS in February
2023. However, the entity's management has remained
non-cooperative. Further, ICRA has been sending repeated reminders
to the entity for payment of surveillance fee that became due but
despite repeated requests by ICRA, the entity's management has
remained non-cooperative. ICRA is unable to validate the servicing
of the debt obligations by Reliance Power Limited. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution.
R-Power, a part of the Reliance Group, promoted by Mr. Anil D
Ambani, is the primary vehicle for investments in the power
generation sector. The company came out with an IPO in February
2008 and raised INR11,560 crore for funding the equity contribution
for some of the identified projects. As on date, the company's
generation capacity stood at 5,945 MW, including 5,760 MW of
thermal capacity and 185 MW of renewable energy-based capacity. Its
operational projects include Rosa Project at Shahajahnapur, Uttar
Pradesh (1,200 MW); Butibori Project at Nagpur, Maharashtra (600
MW), UMPP at Sasan (3,960 MW); solar PV Project at Dhursar,
Rajasthan (40 MW), concentrated solar power project at Pokhran,
Rajasthan (100 MW) and wind project at Vashpet, Maharashtra (45
MW).
RELIGARE FINVEST: ICRA Reaffirms D Rating on INR909.7cr Loans
-------------------------------------------------------------
ICRA has reaffirmed ratings on certain bank facilities of Religare
Finvest Limited (RFL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term bonds/
NCD/LTD 120 [ICRA]D; reaffirmed
Long-term/
Short-term
fund-based
bank limits 909.7 [ICRA]D/[ICRA]D; reaffirmed
Long-term/ - [ICRA]D/[ICRA]D; reaffirmed
Short-term and withdrawn
fund-based
bank limits
Rationale
The rating takes into account the sustained delays in the servicing
of RFL's debt obligations till December 2022. In January 2018, RFL
was put under the Corrective Action Plan (CAP) by the Reserve Bank
of India (RBI), whereby it is prohibited from expanding its
credit/investment portfolio other than investments in Government
securities. From April 2019, RFL delayed/did not repay its bank
loans on account of the proposed resolution plan.
Earlier, the company had proposed a revised Debt Resolution Plan
(DRP) for its lenders for the restructuring of its debt. This was
to revive its business and to ensure the proper alignment of its
asset-liability profile, with its parent company, i.e. Religare
Enterprises Limited (REL), continuing as its promoter. However, the
RBI had advised that the restructuring of the company could not be
implemented with REL continuing as its promoter since the company
was declared as a 'fraud' exposure by the lenders. Subsequently,
RFL proposed a one-time settlement (OTS) as an alternative way to
revive the business. RFL, along with REL, entered into a Settlement
Agreement on December 30, 2022 in connection with the OTS with 16
lenders (OTS lenders) for the full and final settlement of all the
outstanding dues of their secured borrowings and two unsecured
borrowings.
Thereafter, RFL paid 82.7% of the settlement amount to the secured
lenders by December 31, 2022 and completed the OTS by making the
full and final payment of INR400 crore on March 8, 2022. Business
operations are expected to revive only after the settlement of the
outstanding dues on the existing unsecured bank facilities and
debentures and the removal of the CAP imposed by the RBI.
ICRA has reaffirmed and withdrawn the rating assigned to the
INR8,090.30-crore bank facilities as these have been repaid with no
amount outstanding against the same and based on the No Dues
Certificates received from the OTS lenders, in accordance with
ICRA's policy on withdrawal (click here for the policy).
Key rating drivers and their description
Credit challenges
* Poor liquidity and reduced financial flexibility: Given the
Group-related issues, delayed capital support from REL and
challenges in raising incremental funding, RFL's liquidity position
remains poor. The significant asset-liability mismatches have led
to a delay in its debt repayments. RFL's financial flexibility
remains adversely impacted by its weak asset quality profile and
the lack of business growth in the last few years. ICRA notes that
the company had entered into an OTS agreement on December 30, 2022
with 16 lenders (OTS lenders) for the full and final settlement of
all the outstanding dues of their secured borrowings and two
unsecured borrowings. It had already paid 82.7% of the settlement
to the secured lenders by December 31, 2022 and completed the OTS
by making the full and final payment of INR400 crore on March 8,
2022.
* Shrinking asset base with no fresh disbursements: RFL's business
operations have been curtailed since it was put under the CAP by
the RBI in January 2018, whereby it is prohibited from expanding
its credit/investment portfolio other than investments in
Government securities. With no fresh disbursements in the last few
years, RFL's gross loan book declined to INR3,569 crore as on
December 31, 2022 from INR3,981 crore as on March 31, 2022. The
company would require capital support from the parent to fund fresh
business and to stabilise its capitalisation profile, which has
deteriorated.
* Weak asset quality: RFL's asset quality indicators remain weak
with high gross non-performing advances (GNPA%) of 84.8% and net
non-performing advances (NNPA%) of 2.3% as on December 31, 2022
(79.9% and 23.6%, respectively, as on March 31, 2022) primarily due
to the significant delinquencies in the non-core asset book and
partly due to the shrinking small and medium-sized enterprise (SME)
loan book. The company's ability to make collections from the
remaining standard SME loan book and make further recoveries from
the delinquent loan book would be important for improving its
financial position.
Liquidity position: Poor
RFL's liquidity position is currently poor owing to the
misappropriation of funds by the erstwhile promoters and their
associates and the challenges in raising incremental funds. It has
negative cumulative mismatches across all the maturity buckets of
its asset-liability profile. Moreover, as the standard assets
(where inflows are coming and/or are eligible for sale) are far
lower than the liabilities, the company would not be able to repay
the entire balance debt without any capital support or settlement
with the remaining unsecured lenders. Although RFL completed the
OTS agreement with 16 lenders in March 2023, the
repayment/settlement of the outstanding dues on the existing
unsecured bank facilities and debentures will remain a
monitorable.
Rating sensitivities
Positive factors – Timely debt repayment on a sustained basis
could be a positive trigger.
Negative factors – Not applicable
RFL was originally incorporated as Skylark Securities Private
Limited in 1995. It was converted into a public limited company,
Fortis Finvest Limited, in 2004. In March 2006, the company changed
its name to Religare Finvest Limited. RFL is a subsidiary of REL.
The company's on-balance sheet portfolio stood at INR3,569 crore as
on December 31, 2022 (INR3,981 crore as on March 31, 2022). The
company provides loans to SMEs in the form of loan against property
(LAP) and working capital (WC) loans.
RPK STEELS: Insolvency Resolution Process Case Summary
------------------------------------------------------
Debtor: RPK Steels Rolling Mills Private Limited
Village Jandiali, Chandigarh Road,
Near Kohara Ludhiana PB-141112
Insolvency Commencement Date: March 17, 2023
Estimated date of closure of
insolvency resolution process: September 13, 2023
Court: National Company Law Tribunal, Chandigarh Bench
Insolvency
Professional: Arun Gupta
H. No. 229, St. No.5R, Khalsa School Road,
Khanna, Ludhiana, Punjab-141401
Email: arunsapna.ca@gmail.com
India G T Road Khanna-141401 Punjab India
Email: cirp.rpksteel@gmail.com
Last date for
submission of claims: March 31, 2023
S P CONSTRUCTION: CARE Reaffirms B+ Rating on INR2cr LT Loan
------------------------------------------------------------
CARE Ratings has reaffirmed ratings on certain bank facilities of S
P Construction (SPC), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 2.00 CARE B+; Stable Reaffirmed
Short Term Bank
Facilities 15.00 CARE A4 Reaffirmed
Rationale and key rating drivers
The ratings assigned to the bank facilities of SPC remain
constrained on account of modest scale of operations with moderate
profitability margins, modest orderbook position, moderate capital
structure and debt coverage indicators and stretched liquidity
position during FY22 (Audited, FY refers to the period from April 1
to March 31). The ratings are further continues to remain
constrained on account of proprietorship nature of constitution,
susceptibility of profit margins due to volatile material prices
and presence in a highly fragmented and competitive industry.
The ratings, however, derive strength from established track record
of operations & experience of the proprietor in civil construction
industry as well as established relations with reputed clientele.
Rating sensitivities: Factors likely to lead to rating actions
Positive Factors
* Sustained increase in scale of operations of the firm with
repeated orders in hands marked with increase in TOI of more than
INR60 crore with sustained improvement in PBILDT margin beyond
7.50%.
Negative Factors
* Any deterioration of capital structure beyond 2.50 times
* Any decrease in orders which results in deterioration in Total
Operating Income below INR20 crore
Analytical approach: Standalone
Outlook: Stable
For the 'Stable' outlook on the ratings of SPC, CARE Ratings
believes that the entity shall sustain its moderate financial risk
profile over the medium term.
Key Weaknesses
* Modest scale of operations along with moderate profitability
margins: The scale of operations although improved with 51% uptick
in total operating income but stood moderate at INR50.64 crore
during FY22 compared to INR33.46 crore during FY21. As apart from
its core business of executing construction contracts for companies
in the oil and gas sector, SPC also ventured into sale of coal
stocks acquired by participating in coal auctions of various
companies in liquidation led to increase in scale of operation.
Further, in FY22 SPC has made up 60% of its total revenue from
construction activity and balance 40% was from sale of coal.
Increase in scale had a positive impact of the firm's absolute
profitability. Operating profit and net profit increased to INR1.85
crore and INR0.97 crore respectively during FY22 (P.Y.: 1.66 crore
and INR0.86 crore respectively). Resultantly, gross cash accruals
also increased but stood low at INR1.50 crore in FY22 against
INR1.29 crore in FY21. Despite, the SPC's profit margins remained
moderate marked by PBILDT Margin of 3.65% during FY22 marginally
declining from 4.96% during FY21. Given that there are no
escalation clauses in construction contracts of Oil and Gas
companies, the firm is unable to pass on the same to its clients.
Hence, the increase in raw material costs offset the increase in
revenue.
Further, SPC's PAT margin also dipped marginally on account of
higher depreciation costs and stood at 1.91% during FY22 compared
to 2.58% during FY21.
* Modest order book position: SPC has unexecuted order book
position worth INR72.93 crore as on February 28, 2023 (forming
around 1.44 times of TOI of FY22) reflecting modest order book
position. Further, SPC expects to complete these orders by Q3FY24
thus translating into a short-term revenue visibility. However,
these orders are from top-rated public-sector units (PSUs) in the
oil and gas space thus limiting the counter party credit risk.
* Moderate capital structure and debt coverage indicators: SPC's
capital structure remained moderated marked by overall gearing
ratio of 1.41x as on March 31, 2022 as compared to 1.23x as on
March 31, 2021 on account of increase in overall debt specifically
unsecured loan from related parties which offset the increase in
net worth base owing to accretion of net profit to reserves.
Further, SCP's debt coverage indicators remained stable albeit
moderate. SPC's interest coverage improved marginally on the back
of lower finance costs and stood at 2.78x during FY22 compared to
2.24x during FY21. Whereas its TD/GCA lengthened marginally to 7.88
years as on March 31, 2022 compared to 6.93 years as the end of the
previous year as higher overall debt offset the increased cash
profits (GCA) during FY22.
* Proprietorship nature of constitution: Being a proprietorship
concern, SPC has inherent risk of withdrawal of proprietor's
capital at the time of personal contingency. Furthermore, it has
restricted access to external borrowings where net worth as well as
creditworthiness of the proprietor are the key factors affecting
credit decision of the lenders. Hence, limited funding avenues
along with limited financial flexibility have resulted in small
scale of operations for the entity. During FY22, the proprietor has
withdrawn the capital of INR0.32 crore
as against the withdrawal of INR0.51 crore during FY21.
* Susceptibility of profit margins to volatility in raw material
prices: The construction material is the major cost driver and
subcontracting charges. The prices of construction material are
volatile in nature therefore the cost base remains exposed to any
adverse price fluctuations in the prices of material being major
cost components. Further, the firm is unable to pass on the
increase in raw materials to customers due to the non-existence of
price escalation clauses in contract entered with companies in the
oil and gas sector. Accordingly, the profit margins of the firm are
susceptible to fluctuation in material prices.
* Presence in a highly fragmented and competitive industry: The
construction industry is highly fragmented in nature with presence
of large number of unorganized players and a few large, organized
players coupled with the tender driven nature of construction
contracts poses huge competition and puts pressure on the
profitability margins of the players. Further, as the company
participates in tenders invited by government departments, high
competition and lower bargaining power restricts its profitability
margins.
Key Strengths
* Established track record of operations & experienced proprietor
in civil construction industry: SPC has been in the civil
construction business for more than a decade and over the years of
its operations, it has developed long standing relationships with
reputed clients mainly from oil industry as reflected by the
continuous receipt of orders on y-oy basis. SPC is managed by Mr.
Shashipal Kumawat who has rich experience in civil construction for
more than two decades. The proprietor is further assisted by an
experienced management team to carry out project execution and
day-to-day operations.
SPC has maintained a long-standing & established relationship with
reputed customers in the oil industry.
Liquidity: Stretched
The firm's liquidity position remained is stretched with almost 90%
utilization of its working capital bank borrowings during last 12
months ended March 17, 2023. However, The operating cycle has
improved to 15 days in FY22 owing to realization of receivables as
well as mobilization of inventory both of which reduced to 58 days
and 16 days in FY22 respectively (P.Y.: 86 days and 35 days in
FY21). Moreover, owing realization of receivables, the firm
reported a positive cash flow from operations (CFO) of INR3.31
crore during FY22 compared to a negative (CFO) of INR0.37 crore
during FY21. Further, Current ratio and quick stood at 1.67x and
1.45x respectively while the firm had a cash and bank balance of
INR0.39 crore as on March 31, 2022. Furthermore, SPC has adequate
gross accruals to meet its debt repayment obligations.
Established in 2000, as a proprietorship concern by Mr. Shashipal
Kumawat, S P Construction (SPC) is engaged in civil construction
business (primarily construction of plants, buildings, sheds,
roads, etc. for oil companies) through tender bidding process for
reputed players in oil and gas industry namely Hindustan Petroleum
Corporation Ltd, Indian Oil Corporation Ltd, Bharat Petroleum
Corporation Ltd and others from various states of India. The key
raw materials, cement and steel are sourced from local suppliers.
SABAR COTTON: CARE Reaffirms B+ Rating on INR12.35cr LT Loan
------------------------------------------------------------
CARE Ratings has reaffirmed ratings on certain bank facilities of
Sabar Cotton Private Limited (SCPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 12.35 CARE B+; Stable Reaffirmed
Rationale and key rating drivers
The rating assigned to the bank facilities of SCPL is primary
remain constrained on account of modest in scale of operations with
low profitability, leverage capital structure, weak debt coverage
indicators and stretched liquidity in FY22 (Audited, refers to
period April, 1 to March, 31). The rating also continues to remain
constrained due to susceptibility of operating margins to cotton
price fluctuations, its presence in the highly fragmented cotton
industry coupled with seasonal and regulated cotton industry with
limited value addition The rating however derives strength from
experience of its promoters and proximity to cotton growing regions
of Gujarat.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Sustaining scale of operation of TOI over INR90crore with
achieving PBILDT margin of more than 5%
* Improvement in capital structure with overall gearing below 2x
with improvement in debt coverage indicators marked by TDGCA below
10 years with interest coverage of above 2.5x.
Negative Factors
* Deterioration in scale of operation by more than 20% with
decrease in profitability marked by PBILDT margin below 2.50%
* Any major debt funded capex putting pressure on capital
structure, profitability, and liquidity
Analytical approach – Standalone
Outlook: Stable
The 'Stable' outlook on the ratings of SCPL reflects CARE Ratings
believes that the entity shall sustain its modest financial risk
profile over the medium term.
Key weaknesses
* Modest scale of operations and low profitability: SCPL's scale of
operations marginally increased during FY22 given that it can pass
on the rise input costs to its customers albeit remained modest
marked by total operating income (TOI) INR82.22 crore during FY22
as against INR76.00 crore in FY21. Further, during 11FY23(Prov)
SCPL has achieved TOI of INR118 crore. Thus, in line with the
improvement in scale of operations with stable consumption cost as
well as interest and depreciation cost, the profitability improved
over previous year marked by PBILDT margin and PAT margin 3.35% and
1.31% during FY22 compared to 2.83% and 0.89% during FY21. However,
owing to its low value addition nature of business its overall
profitability remained low.
* Leveraged capital structure and moderate debt coverage
indicators: The capital structure of SCPL has deteriorated
marginally and continue to remain leveraged marked by an overall
gearing ratio of 3.07 times as on March 31, 2022, as against 2.87
times as on March 31, 2021 owing to increase in overall debt levels
led by working capital loan taken by the company during FY22 which
offset the increase in networth base due to accretion of profits to
reserves. Further, as a result of leveraged gearing position with
low profitability debt coverage parameters although improved but
continue to remain weak marked by high TD/GCA ratio at 15.28 years
as on March 31, 2022 as against 16.32 times as on March 31, 2021
and interest coverage ratio of 2.05 times in FY22 against 1.57
times in FY21.
* Presence in highly fragmented industry with limited value
addition and prices and supply for cotton being highly regulated by
government: SCPL operates in textile industry characterized by low
entry barriers, high fragmentation, the presence of a large number
of players in the organized and unorganized sector and very low
bargaining power against its customers, puts pressure on the
profitability margins. Prices of raw material i.e., raw cotton
fibre are highly volatile, making the profitability margins of the
cotton ginners susceptible to adverse fluctuations in the fibre
prices. Cotton, being an agricultural commodity, its availability
and price are dependent on factors such as vagaries of nature,
international demand and supply, expectation of crop during the
ongoing season and also in the next season, Minimum Support Price
(MSP) fixed by the Government, time of procurement, prices of
polyester fibre/ yarn and also by the distance of the cotton
ginning units from the major cotton fibre sourcing centre. Hence,
any adverse changes in the aforementioned factors may negatively
impact the prices of raw cotton in domestic market and could result
in lower realizations and profit for companies such as SCPL.
* Susceptibility of operating margins to cotton price fluctuation
and seasonality associated with cotton industry: The profitability
of SCPL is exposed to fluctuations in raw material prices, which is
being agricultural commodity its prices are volatile in nature and
linked to production in the domestic market. Further, the supply of
key raw materials is primarily dependent upon monsoon during a
particular year as well as overall climatic conditions. Hence, any
adverse movement in cotton prices would impact profitability of the
company.
Key strengths
* Experienced promoters: Mr. Bharatkumar Patel, Mr. Ashvinkumar
Patel, Mr. Nareshkumar Patel, Mr. Rajeshkumar Patel Mr. Yashpal
Patel, Mr. Niravkumar Patel, Mr. Navnitkumar Patel are key
promoters of the company all of them possess on an average
experience of 10 years of in the industry and jointly look after
all over operation of the company.
* Proximity to cotton growing regions of Gujarat: SCPL's plant is
located in Sabarkantha district of Gujarat region. Gujarat is the
largest producer of raw cotton in India. SCPL's presence in
cotton-producing region results in benefit derived from lower
logistics expenditure (both on transportation and storage), easy
availability and procurement of raw materials at effective price
and consistent demand for finished goods resulting in sustainable
revenue visibility.
Liquidity: Stretched
The liquidity position of the company stood stretched marked by
elongated working capital cycle of 78 days in FY22 (P.Y.: 76 days)
as a result of blockage of funds in receivables which increased to
35 days in FY22 compared to 24 days in FY21. This also impacted the
company's cash flow from operations (CFO) which stood negative at
INR3.26 crore during FY22 compared a positive CFO of INR0.69 crore
in the previous year. Further, Cash and bank balance remained low
at INR0.01 crore as on March 31, 2022. Furthermore, the average
utilization of working capital bank borrowings remained high at 90%
for the past 12 months ended March 21, 2023. Due to higher
receivables, the current ratio improved to 1.61x, however, quick
ratio continued to remain below unity at 0.83x as on March 31,
2022. However, gross cash accruals are expected to remain adequate
to meet its fix repayment obligation.
Ahmedabad based (Gujarat) SCPL was incorporated in May 2008 as a
private limited company by two directors named Mr. Jivraj Patel and
Mr. Laxman Patel. Currently, SVPL is managed by seven directors who
hold vast experience in various industries i.e., cotton, agro,
textile, ceramic, chemical. The company is engaged into cotton
ginning and pressing of cotton from its 46 ginning machines. SCPL
operates from its sole manufacturing plant situated in Sabarkantha,
Gujarat with a total processing capacity of 350 bales per day as on
March 31, 2022.
SAISONS TRADE: ICRA Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has retained the ratings for the Non-Convertible Debentures
(NCD) of Saisons Trade & Industry Private Limited (STIPL) in the
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non-Convertible 5.00 [ICRA]D; ISSUER NOT COOPERATING;
Debenture (NCD) Rating continues to remain under
'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Incorporated in 1999, STIPL manufactures electrical panels, fire
panels and accessories, wire harness, telecom products and various
fabricated products. It ventured into merchant exports of agro
commodities and chemicalsin FY2018. The company's manufacturing
facility isin Bhiwandi (Thane district in Maharashtra) and its
registered office is in Mumbai.
SAVFAB DEVELOPERS: ICRA Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------------
ICRA has retained the Long-Term rating of Savfab Developers Pvt.
Ltd. in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA] D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 35.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Incorporated in 2012, SDPL is developing a residential project
called "Jasmine Grove" at Village Mehrauli, on NH-24, Ghaziabad,
Uttar Pradesh. In the last year, the company increased the scope of
the project to 517 flats from the originally envisaged 370 flats.
The company is part of the Saviour group, which is promoted by Mr.
Dhanesh Goel and Mr. Vineet Goel, who have been
executing projects in NCR for many years.
THAZHAYIL FINANCE: CARE Reaffirms B+ Issuer Rating
--------------------------------------------------
CARE Ratings has reaffirmed ratings on certain bank facilities of
Thazhayil Finance Private Limited (TFPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Issuer rating - CARE B+; Stable Reaffirmed
Rationale and key rating drivers
The rating assigned to issuer rating of TFPL is constrained by
small scale of operations with geographical concentration of
portfolio, moderate profitability, moderate asset quality and
concentrated resource profile with limited track record of debt
raising. The rating takes note of the low capital base with
networth of INR4.65 crore as on December 31, 2022. However, the
rating draws strengths from the experience of the management in the
lending business.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors – Factors that could, individually or
collectively, lead to positive rating action/upgrade:
* Improvement in the scale of operations along with good asset
quality and profitability on a sustained basis.
* Significant infusion of equity capital
Negative factors – Factors that could, individually or
collectively, lead to negative rating action/downgrade:
* Weakening of asset quality levels and profitability
* Significant weakening of capitalization levels with overall
gearing above 5x and weakening of liquidity profile
Analytical approach: Standalone
Outlook: Stable
CARE Ratings believes that the entity shall sustain its moderate
financial risk profile over the medium term.
Key weaknesses
* Small scale of operations with geographical concentration of
portfolio: Thazhayil Finance Private Limited (TFPL) received RBI
licence in 2017 and has completed five years of operations offering
online personal loans, two-wheeler loans and business loans to
customers in Kerala. TFPL is in its early stages of operations with
a tangible net worth of INR4.63 crore as on March 31, 2022 (PY:
INR4.81 crore) and loan portfolio INR3.22 crore as on March 31,
2022 as against a loan portfolio of INR2.61 crore as on March 31,
2021. Loan portfolio stood at INR7.96 crore as on December 31,
2022. The company has opened 4 branches in Tamil Nadu during 9MFY23
and has started offering gold loans. The company has a processing
centre in Cochin, with focus on their
online platform for flexibility to diversify to other regions.
* Moderate profitability: TFPL started its operations in FY17 and
remains in its early stages of operations. The company had been
profitable until FY19. However, during FY20, the company had
reported losses of INR0.35 crore due to higher operating expenses
in the year. During FY22, the company reported profit of INR0.10
crore on a total income of INR0.62 crore as against
profit of INR0.03 crore on a total income of INR0.44 crore during
FY21. ROTA stood at 1.95% in FY22 as against 0.33% in FY21. During
9MFY23, the company made a PAT of around INR0.07 crore. CARE
expects the profitability to remain moderate considering the
growing scale of operations.
* Moderate asset quality: GNPA and NNPA levels has improved from
22.53% (180+ NPA recognition) and 20.21% as on March 31, 2021 to
3.47% and 2.89% as on March 31, 2022. GNPA and NNPA has marginally
improved to 2.80% and 2.53% as on September 30, 2022. 90+ DPD
remained at 6.33% as on March 31, 2022 and 4.25% as on September
30, 2022. The ability of the company to control the delinquencies
and maintain good asset quality while growing the scale of
operations remain crucial with majority of the portfolio being
cashflow based small ticket digital unsecured personal loans and
business loans.
* Limited track record of debt raising: The company funds the loan
portfolio from its capital and retail debentures. Hence,
100% of the borrowings are in the form of retail debentures. Going
forward, the company needs to find other sources of funding
and diversify the funding sources.
* Low capital base: TFPL has a tangible net worth of INR4.63 crore
as on March 31, 2022 (Rs.4.81 crore as on March 31, 2021).
The promoters have infused around INR1 crore in the company during
Q3FY23. The company needs to raise fresh equity capital
continuously in order to support the growth and change in
regulatory capital if any.
Key strengths
* Experienced Management with support from the group: Thazhayil
Finance Private Limited (TFPL) is led by Mr. Thomas John who has
more than four decades of experience in finance industry through
Chit funds, gold finance entity and Nidhi company with 67 branches
apart from this NBFC. Mr. Genoy John, son of Mr. Thomas John, has
about a decade of experience. Apart from NBFC, Thazhayil group has
other business like Thazhayil Nidhi limited and Innovtech
Solutions. Also, Experienced personnel with over 30 years of
experience in the banking industry have joined TFPL to head the
digital product segment.
Liquidity: Adequate
The Company's cash and cash equivalents stood at INR1.64 crore as
on December 31, 2022 and has around INR1.99 crore as repayment for
NCDs amount till December 2023. NCD has tenor ranging from 1 year
to 5 years whereas the loan portfolio has a tenor of upto 3 years.
The liquidity is adequate for the current scale of operations with
overall gearing remaining lower.
Thazhayil Finance Private Limited (TFPL) is a NBFC registered with
RBI as a Non-Deposit taking company and is a part of Thazhayil
Group. The Group was founded by late Shri. Yohannan Thomas in 1967,
with the main activity being chit fund business. In 2002, the group
ventured into gold loan business under the leadership of Mr. Thomas
John, son of late Mr. Yohannan Thomas. TFPL has been focusing on
digital lending of personal loans, two-wheeler loans and business
loans. The company is associated with various analytical FinTech
companies for Credit Scoring, Bank statement analysis, analysis of
KYC documents, GST return analysis, etc. The company has also
started 4 branches during 9MFY23 and started providing gold loans
as well.
UFM INDUSTRIES: CARE Lowers Rating on INR7cr LT Loan to BB-
-----------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
UFM Industries Limited (UFM), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.00 CARE BB-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE BB; Stable
Rationale and key rating drivers
CARE has been seeking information from UFM to monitor the rating(s)
vide e-mail communications dated November 21, 2022, December 11,
2022, and numerous phone calls. However, despite our repeated
requests, the company has not provided the requisite information
for monitoring the ratings. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the best
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating. Further, UFM has not paid
the surveillance fees for the rating exercise agreed to in its
Rating Agreement. The rating on UFM's bank facilities will now be
denoted as CARE BB-; Stable/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 rating has been revised and continues to remain under issuer
non-cooperating category on account of non-availability of
requisite information for monitoring the rating. The ratings
continue to remain constrained by its moderate scale of operations
along with low profit margin in FY22 (refers to the period from
April 1 to March 31), volatile agro-commodity (flour) prices with
linkages to vagaries of the monsoon, regulated nature of industry
and intensely competitive nature of the industry with presence of
many unorganized players and deterioration in capital structure and
debt coverage indicators. The constraints are however, partially
off-set by its experienced promoter and long track record of
operations, satisfactory demand outlook of the products and
proximity to raw material sources.
Detailed description of the key rating drivers
At the time of last rating on Jan. 5, 2022, the following were the
rating strengths and weaknesses (updated for information received
from stock exchange and other sources):
Analytical approach: Standalone
Key weaknesses
* Moderate scale of operation with low profitability margin: UFM is
a small player vis-à-vis other players in food processing industry
marked by its total operating income of INR87.41 crore
(Rs.84.30 crore in FY21) with a PAT of INR1.41 crore (Rs.1.51 crore
in FY21) in FY22. The total net worth was moderate at INR19.55
crore as on March 31, 2022, as compared to INR18.43 crore as on
March 31, 2021. The moderate size restricts the financial
flexibility of the company in times of stress. The profitability
margin of the company remained low marked by PBILDT margin of 1.77%
(1.57% in FY21) and PAT margin of 1.27% (1.38% in FY21) in FY22.
The company earned a PAT of INR1.33 crore in 9MFY23 vis-à-vis
INR1.60 crore in 9MFY22.
* Volatile agro-commodity (flour) prices with linkages to vagaries
of the monsoon and regulated nature of the industry: UFM is
primarily engaged in the processing of wheat products under its
roller mills. Wheat being an agricultural produce and staple food,
its price is subject to intervention by the government. In the
past, the prices of wheat have remained volatile mainly on account
of the government policies in respect of Minimum Support Price
(MSP) and controls on its exports. Further to be noted, the prices
of wheat are also sensitive to seasonality, which is highly
dependent on monsoon. Any volatility in the wheat prices will have
an adverse impact on the performance of the flour mill.
* Intensely competitive nature of the industry with presence of
many unorganized players: The flour milling industry is highly
fragmented and competitive due to presence of many players
operating in this sector owing to its low entry barriers, due to
low capital and technological requirements. Assam and nearby states
are major wheat growing areas with many flour mills operating in
the area. High competition restricts the pricing flexibility of the
industry participants and has a negative bearing on the
profitability.
* Deterioration in capital structure and debt coverage indicators:
The capital structure of the company deteriorated slightly marked
by overall gearing ratios at 0.34x as on March 31, 2022, as
compared to 0.13x, as on March 31, 2021, on account of increase in
debt level. The debt coverage indicators also deteriorated marked
by total debt/GCA of 4.67x as on March 31, 2022, as against 1.65x
as on March 31, 2021. Furthermore, the interest coverage ratio also
deteriorated to 2.73x in FY22 vis-à-vis 3.07x FY21.
Key strengths
* Experienced Promoters and long track record of operations:
Mr. Mahabir Prasad Jain has around three decades of experience in
the flour mill business, and he looks after the overall management
of the company, with adequate support of other directors and a team
of experienced personnel. More than two decades of presence of the
company, reflecting long track record in the business of processing
of wheat products under its roller mills.
* Satisfactory demand outlook of the products and proximity to raw
material sources: Wheat based products, viz. Maida, Sooji, Bran and
Atta have large consumption across the country in the form of
bakery products, cakes, biscuits and different types of food dishes
in homes and restaurants. The demand has been driven by the rapidly
changing food habits of the average Indian consumer, dictated by
the lifestyle changes in the urban and semi-urban regions of the
country.
UFM Industries Limited's unit has close proximity to local grain
markets and major raw material procurement destinations. Further,
Assam and nearby states are one of the major wheat producing area
in India. Accordingly, UFM Industries Limited has locational
advantage in terms of proximity to raw material. This apart, the
plant is located in the vicinity of industrial area of Assam,
having good transportation facilities and other requirements like
good supply of power, water etc.
UFM was incorporated in 1986 by conversion of the then partnership
firm 'M/s Union Flour Mills'. The company is listed at the Bombay
Stock Exchange (BSE) and the Calcutta Stock Exchange Association
Limited. Since its inception, the company has been engaged in flour
milling business in the state of Assam and presently it is
operating in the district of Silchar and Dhubri with an aggregate
milling capacity of 1,14,000 metric tons per annum. The company
mainly manufactures atta, maida, sooji and bran which are sold
through wholesalers and dealers.
VISHNU ENTERPRISES: CARE Lowers Rating on INR30cr Loan to D
-----------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Vishnu Enterprises (VE), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 30.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE BB-; Stable
Short Term Bank 10.00 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 June 7, 2022,
placed the rating(s) of VE under the 'issuer non-cooperating'
category as VE 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. VE continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 29, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of VE have been revised
on account of on-going delays in debt servicing recognized from
publicly available information as well as auditor's feedback.
Vishnu Enterprises (VE) based at Hyderabad, Telangana, established
in 2003 is now a partnership entity of Mrs. Indira Agarwal and Mr.
Pramod Agarwal. VE is engaged in designing & making of gold jewelry
(Wholesaler) and selling it to retail traders. VE mainly
specializes in traditional south Indian Jewellery products which
form a part of their customs & traditions, products such as
vaddanams etc.
=====================
N E W Z E A L A N D
=====================
86 AUTO: Court to Hear Wind-Up Petition on April 17
---------------------------------------------------
A petition to wind up the operations of 86 Auto Limited will be
heard before the High Court at Hamilton on April 17, 2023, at 10:45
a.m.
Drive & Go Limited filed the petition against the company on Feb.
9, 2023.
The Petitioner's solicitor is:
James Cochrane
Lane Neave, Level 8
Vero Centre
48 Shortland Street
Auckland 1010
GOLDEN 5R: Creditors' Proofs of Debt Due on May 5
-------------------------------------------------
Creditors of Golden 5R Transport Limited are required to file their
proofs of debt by May 5, 2023, to be included in the company's
dividend distribution.
The High Court at Auckland appointed Simon Dalton and Matthew Kemp
of Gerry Rea Partners as liquidators of the company on March 24,
2023.
MY TREAT: Creditors' Proofs of Debt Due on May 6
------------------------------------------------
Creditors of My Treat Limited are required to file their proofs of
debt by May 6, 2023, to be included in the company's dividend
distribution.
The High Court at Tauranga appointed Thomas Lee Rodewald of
Rodewald Consulting Limited as liquidator of the company on March
27, 2023.
PORSE EDUCATION: Court to Hear Wind-Up Petition on May 5
--------------------------------------------------------
A petition to wind up the operations of Porse Education & Training
(NZ) Limited will be heard before the High Court at Auckland on May
5, 2023, at 10:45 a.m.
Tertiary Education Commission filed the petition against the
company on March 9, 2023.
The Petitioner's solicitor is:
Bridie Rose McKinnon
Buddle Findlay
Level 17, Aon Centre
1 Willis Street
Wellington 6011
SHARDEN HOLDINGS: Creditors' Proofs of Debt Due on April 29
-----------------------------------------------------------
Creditors of Sharden Holdings Limited are required to file their
proofs of debt by April 29, 2023, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on March 29, 2023.
The company's liquidator is:
Brenton Hunt
PO Box 13400
City East
Christchurch 8141
===============
P A K I S T A N
===============
PAKISTAN: Hikes Key Interest Rate to Record 21%
-----------------------------------------------
Reuters reports that Pakistan's central bank raised its key
interest rate to a record 21% on April 4 as the cash-strapped
country bid to curb crippling food inflation and maintain the
confidence of foreign creditors.
According to Reuters, the 100 basis-point (bp) increase by the
State Bank of Pakistan (SBP) was less than the 200 forecast by a
Reuters poll of analysts as the country grapples with record annual
consumer inflation of over 35%.
Reuters says global factors have compounded consumer inflation
already buoyed by Pakistan's weakening currency, energy tariff
increases and hikes in food prices due to Ramadan.
Food, beverage, and transportation prices have all surged more than
45%, putting pressure on household budgets and leaving many
desperate. At least 16 people were killed in stampedes for food aid
last week.
"The MPC considers the current monetary policy stance appropriate
and stresses that today’s decision, along with previous
accumulated monetary tightening, will help achieve the medium-term
inflation target over the next eight quarters," the SBP said in a
statement, Reuters relays.
The SBP has hiked its key rate by a cumulative 1025 bps since
January 2022.
Reuters notes that the rupee closed at 287.29 against the dollar,
its lowest ever level, after depreciating over 1% during the day.
The currency has lost more than 20% of its value since the start of
the year.
The SBP may have held back from a more aggressive rate hike due to
indications that a broad economic slowdown is already likely, said
Tahir Abbas, head of research at Arif Habib limited, relays
Reuters.
"A majority of the high frequency indicators already depict
negative growth and a massive slowdown in the economy," Reuters
quotes Abbas as saying. "An aggressive rate hike won't be of much
help."
According to Reuters, Pakistan is in talks with the International
Monetary Fund to unlock its next loan tranche worth around $1.1
billion as part of a $6.5 billion bailout agreement reached in
2019.
In early March, the central bank raised its key rate by 300 basis
points to 20%, exceeding market expectations, in what many saw as a
bid to ensure the release of bailout funds, Reuters recalls.
In its statement, the SBP said an early conclusion of the ninth
review of the IMF program was critical to rebuilding foreign
exchange reserve buffers.
Reuters relates that analysts said the governor of the SBP stated
in a private briefing that principal repayments of $4.5 billion
remained due during the last quarter of the fiscal year, which ends
on June 30.
Of that, $2.3 billion will be rolled over, while repayments of $2.2
billion are payable, the analysts said. Most of the repayments are
multilateral and bilateral with $100 million in commercial loans,
Reuters states.
As Pakistan bids to avoid a possible default on foreign
obligations, the only help so far has come from longtime ally
Beijing, through a $1.8 billion refinancing and a rollover of $2
billion in March, adds Reuters.
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 recently reported in the Troubled Company Reporter-Asia Pacific,
Moody's Investors Service has downgraded the Government of
Pakistan's local and foreign currency issuer and senior unsecured
debt ratings to Caa3 from Caa1. Moody's has also downgraded the
rating for the senior unsecured MTN programme to (P)Caa3 from
(P)Caa1. Concurrently, Moody's has also changed the outlook to
stable from negative. The decision to downgrade the ratings is
driven by Moody's assessment that Pakistan's increasingly fragile
liquidity and external position significantly raises default risks
to a level consistent with a Caa3 rating.
=================
S I N G A P O R E
=================
APPLECART INVESTMENTS: Final Meeting Set for May 2
--------------------------------------------------
Members and creditors of Applecart Investments Pte Ltd will hold
their final meeting on May 2 2023, at 2:30 p.m. via electronic
means.
At the meeting, Oon Su Sun, the company's liquidator, will give a
report on the company's wind-up proceedings and property disposal.
ASIA HOSPITALITY: Members' Final Meeting Set for May 2
------------------------------------------------------
Members of Asia Hospitality Reit Advisors Pte. Ltd. will hold their
final general meeting on May 2, 2023, at 10:00 a.m. via Microsoft
Teams communication platform.
At the meeting, Lai Seng Kwoon, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
CMIDF JALANDHAR: Final Meeting Set for May 5
--------------------------------------------
Members and creditors of CMIDF Jalandhar Mall (Singapore) Pte. Ltd.
and CMIDF Nagpur Mall (Singapore) Pte. Ltd. will hold their final
general meeting on May 5, 2023, at 10:00 a.m. and 10:30 a.m.,
respectively, via Zoom.
At the meeting, Leow Quek Shiong, Gary Loh Weng Fatt, and Seah Roh
Lin, the company's liquidators, will give a report on the company's
wind-up proceedings and property disposal.
INTER-PACIFIC PETROLEUM: Trial in Suit vs. Former Director Starts
-----------------------------------------------------------------
The Straits Times reports that a high court trial began on April 3
between the liquidators of Inter-Pacific Petroleum (IPP) and its
former director, Dr Goh Jin Hian, over US$156 million (SGD207
million) in losses resulting from his alleged breach of director's
duties.
ST relates that in opening statements, lawyers for IPP's
liquidators, who are seeking to recover that sum, accused Dr Goh of
"sleepwalking through his time as a director" and failing to
discover and stop drawdowns in trade financing between June and
July 2019 to fund alleged "non-existent or sham transactions".
But Dr Goh, 54, the son of former prime minister Goh Chok Tong,
said the suit is a "blatant attempt to scapegoat him", as he was
"not involved in any sham transactions".
According to the liquidators, the trade financing came from Malayan
Banking (Maybank) and the Singapore branch of Societe Generale
(SocGen), IPP's two largest creditors, ST relays. It consisted of
US$146 million drawn down for cargo trading operations, and US$10.5
million drawn from SocGen's facility for IPP's bunkering operations
allegedly when IPP was "balance-sheet insolvent".
According to ST, Senior Counsel Lok Vi Ming, who represents
Deloitte & Touche, IPP's judicial managers turned liquidators,
questioned why Dr Goh "failed to inquire and investigate a large
amount of receivables – US$132 million – allegedly owed to IPP
by Mercuria Energy Trading".
Had Dr Goh done so, he would have learnt that the invoices IPP
issued to Mercuria from September 2017 to February/March 2018 were
for bogus transactions, and he would have prevented IPP from
drawing down on the trade financing with SocGen and Maybank in June
and July 2019, ST relates.
But TSMP Law's Senior Counsel Thio Shen Yi and Nanthini
Vijayakumar, who represent Dr Goh, said that "when he signed an
audit confirmation request that sets out Mercuria's balance with
IPP as at Dec. 31, 2017, there was no suggestion from management or
the auditors that these amounts were ‘overdue'".
Thio told the court on April: "The liquidators say Dr Goh should be
a detective, he should have investigated. What they do not say is
that the controllers of the company were the fraudsters.
"They say that he was negligent, or ‘asleep at the wheel'. But Dr
Goh, as a non-executive director, was not at the wheel. The
perpetrators of the sham were," he added.
According to Dr Goh's opening statement, IPP's cargo trades and its
books and records were directly managed out of its Hong Kong office
by Zoe Cheung, a former director and 85% shareholder, and former
chief financial officer Wallace To. "If Dr Goh (was suspicious
about) IPP's finances, and was inclined to investigate, he would
require Zoe and Wallace's cooperation," it said.
"Yet, Zoe and Wallace are likely to be the very people that
manipulated IPP's accounts. Dr Goh would have been fed untruths."
Furthermore, it is not clear if the banks suffered the US$156
million in alleged losses, or that these losses were solely caused
by IPP, it added, ST relays.
Up to June-July 2019, IPP appeared to be in business-as-usual mode,
with no red flags raised, ST states. Maybank and SocGen, which
financed the supply contracts through letters of credit, were paid
on time, as IPP was receiving funds from its customers, court
papers said. "There was no reason for Dr Goh to suspect any foul
play."
ST says the liquidators also alleged that Dr Goh missed another
opportunity to investigate IPP's affairs in June 2019 when its
bunker operator craft licence was suspended after the Maritime and
Port Authority of Singapore detected operational irregularities
during an inspection.
They said that while Dr Goh had told the authority that IPP was
"under tremendous financial strain", he did so "without bothering
to check IPP's financial position". This is because if he had done
so, he would have "discovered that there were receivables amounting
to about US$964.9 million as of June 2019".
And if he had checked on the validity and accuracy of these
receivables, "the sham transactions would have been exposed", the
liquidators, as cited by ST, argued.
But Thio disputed: "While the suspension was relevant to IPP's
business, it would not cause a director to look backwards into
IPP's financials. A director's actions would be forward-looking (to
ensure) that IPP could continue its bunker business with minimal
disruption."
He added: "Have the liquidators properly discharged their duties in
bringing this claim against Dr Goh? We will show that they have not
done their homework . . . in service of a bizarre and frivolous
claim designed to put reputational pressure on Dr Goh because of
who he is."
Dr Goh held 36 concurrent directorships between 2017 and August
2019, the report notes.
In 2020, he stepped down as non-independent, non-executive chairman
of healthcare and energy firm New Silkroutes Group and resigned as
independent director of cord-blood banking firm Cordlife Group.
About Inter-Pacific Petroleum
Inter-Pacific Petroleum (IPP) is principally engaged in wholesale
trade of a variety of goods with ship bunkering as the secondary
activity.
As reported in the Troubled Company Reporter-Asia Pacific on Sept.
6, 2019, Deloitte & Touche said on Sept. 5, 2019, it has been
appointed by Singapore's high court to act as interim judicial
manager for Inter-Pacific Group Pte (IPG) in an application for a
court-led debt restructuring process. The appointment, following a
nomination by IPG, comes more than two months after IPG unit
Inter-Pacific Petroleum Pte (IPP) had a licence to operate bunker
fuel tankers suspended by Singapore's Maritime Port Authority
(MPA). The MPA detected operational irregularities during an
inspection.
On March 25, 2021, the High Court of Singapore entered an order on
to wind up the operations of IPP. Mr. Lim Loo Khoon and Mr. Tan
Wei Cheong of Deloitte & Touche LLP were appointed liquidators of
the company.
SARMENT PTE: Final Meeting Set for May 2
----------------------------------------
Members and creditors of Sarment Pte. Ltd. will hold their final
general meeting on May 2, 2023, at 10:00 a.m., via Zoom.
At the meeting, Leow Quek Shiong and Gary Loh Weng Fatt, the
company's liquidators, will give a report on the company's wind-up
proceedings and property disposal.
TRANSFORMER I: Members' Final Meeting Set for May 2
---------------------------------------------------
Members of Transformer I Pte. Ltd. will hold their final general
meeting on May 2, 2023, at 11:30 a.m., at at 80 Robinson Road,
#02-00, in Singapore.
At the meeting, Lee Wei Hsiung, the company's liquidators, will
give a report on the company's wind-up proceedings and property
disposal.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
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Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2023. All rights reserved. ISSN: 1520-9482.
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