/raid1/www/Hosts/bankrupt/TCRAP_Public/230419.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
Wednesday, April 19, 2023, Vol. 26, No. 79
Headlines
A U S T R A L I A
BBLAUTOFIRST PTY: First Creditors' Meeting Set for April 24
CLADTECH AUSTRALIA: First Creditors' Meeting Set for April 27
IN-STYLE DEVELOPMENTS: Second Creditors' Meeting Set for April 27
PORTER DAVIS: Liquidators Pursue Homeowners Over Unpaid Debts
SAPPHIRE XXVII 2023-1: S&P Assigns Prelim. B+ Rating on E Notes
TAMAROO ENERGY: First Creditors' Meeting Set for April 27
WISE HAULAGE: Second Creditors' Meeting Set for April 21
C H I N A
SUNING.COM: Revises Up Expected 2022 Loss to as Much as USD2.4BB
[*] CHINA: Carmakers Must Turn Profitable to Survive
F I J I
FIJI: Must Cut Debt Urgently, World Bank Warns
I N D I A
AAA VEHICLEADES: CRISIL Moves B+ Debt Ratings to Not Cooperating
AISHWARYA CONSTRUCTION: CARE Cuts Rating on INR49.50cr Loan to B-
ALCOB INDIA: CARE Keeps D Debt Ratings in Not Cooperating Category
ALVAS EDUCATION: CARE Keeps D Debt Rating in Not Cooperating
ANAND HR: CRISIL Lowers Rating on INR7cr Cash Debt to C
AXIS OVERSEAS: CARE Keeps B+ Debt Rating in Not Cooperating
BALAJI ASSOCIATES: CRISIL Lowers Rating on INR8cr Term Loan to B+
DEEPAK AGRO: CARE Keeps B- Debt Rating in Not Cooperating
EXPOVAN: CRISIL Lowers Rating on INR35cr Export Debt to D
KAILASH ELECTRICALS: CARE Keeps B- Debt Rating in Not Cooperating
KAUSHALYA SPINNERS: CARE Lowers Rating on INR8.09cr Loan to B
M L RICE: CARE Keeps B- Debt Rating in Not Cooperating Category
MAHALAXMI AGRO: CARE Lowers Rating on INR4.77cr LT Loan to D
MCLEOD RUSSEL: Settlement with IL&FS Likely in Two Weeks
MPS TELECOM: CARE Keeps B- Debt Rating in Not Cooperating
NEO ISPAT: CRISIL Assigns B Rating to INR4.50cr Demand Loan
PRASHANT ENTERPRISES: CARE Keeps D Rating in Not Cooperating
PRAVESH FINLEASE: CARE Assigns B Rating to INR100cr LT Loan
RENEW ENERGY: Fitch Assigns 'BB-' Foreign Curr. IDR, Outlook Stable
SANGAT PRINTERS: CARE Keeps B+ Debt Rating in Not Cooperating
SARVASTU SPINTEX: CRISIL Assigns B+ Rating to INR52.5cr Term Loan
SHIRIDI SAIRAM: CRISIL Lowers LT/ST Loan Rating to D
SINCERE CONSTRUCTION: CARE Cuts Rating on INR5.00cr Loan to B-/A4
SRI SPINNERS: CARE Keeps B- Debt Rating in Not Cooperating
WOMENS NATIONAL: CARE Keeps B- Debt Rating in Not Cooperating
M A L A Y S I A
1MDB: Malaysia to Review $3.9BB Settlement Deal with Goldman Sachs
N E W Z E A L A N D
BOBUX INTERNATIONAL: Placed in Receivership
DREAM HOME: Court to Hear Wind-Up Petition on April 20
EKO CARBON: Creditors' Proofs of Debt Due on April 20
METRO ADMIN: Court to Hear Wind-Up Petition on May 12
SANDERS MANUFACTURING: Creditors' Proofs of Debt Due on May 19
SATGUR ORCHARD: Court to Hear Wind-Up Petition on May 22
ZARTAJ DESIGN: Court to Hear Wind-Up Petition on April 24
S I N G A P O R E
70 SHENTON: Members' Final Meeting Set for May 17
A ASSET: Court to Hear Wind-Up Petition on May 5
EISHINKAN SINGAPORE: Creditors' Proofs of Debt Due on May 17
NEW ENGLAND: Members' Final Meeting Set for May 17
RAILSBANK TECHNOLOGIES: Placed in Provisional Liquidation
S O U T H K O R E A
[*] S. KOREA: To Expand Saving Bank Checks to Prevent Insolvency
- - - - -
=================
A U S T R A L I A
=================
BBLAUTOFIRST PTY: First Creditors' Meeting Set for April 24
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of:
- Bblautofirst Pty Ltd;
- Comfyfirst Pty Ltd (Trading name: Electrical Medics,
Plumbing Medics, Hot Water Medics);
- Elecfirst Pty Ltd;
- Firstaction Group Pty Ltd (Trading name: MAD Electrical and
HVAC, MAD Heating and Air Conditioning, MAD Plumbing,
HOMEFIRST SERVICES, Home Care Trades First,
ComfyFirstHomeCare, ElecFirstHomeCare,
PlumbFirstHomeCare, SolarFirstHomeCare, Adelaide Home
Assist, Brisbane Home Assist, Melbourne Home Assist, Perth
Home Assist, Sydney Home Assist, HydronicFirst, RENOFIRST,
SOLARFIRST, ELECFIRST, HOT WATER DIRECT);
- Plumbfirst Pty Ltd (Trading name: ComfyFirst Heating and
Cooling, plumbfirst);
- Plumbfirst Elecfirst Comfyfirst Nsw Pty Ltd (Trading name:
ComfyFirst NSW, Drains Direct NSW, ElecFirst NSW, MAD
Electrical Heating & Cooling NSW, MAD Plumbing NSW,
Plumbfirst NSW)
will be held on April 24, 2023, at 10:00 a.m. at Boulevard 3 Room
View Melbourne Hotel, 562 St Kilda Rd, in Melbourne, Victoria.
Alan Walker and Glenn Livingstone of WLP Restructuring were
appointed as administrators of the companies on April 12, 2023.
CLADTECH AUSTRALIA: First Creditors' Meeting Set for April 27
-------------------------------------------------------------
A first meeting of the creditors in the proceedings of Cladtech
Australia Pty Ltd will be held on April 27, 2023, at 2:30 p.m. via
virtual meeting technology.
Leigh Dudman of Hamilton Murphy Advisory was appointed as
administrators of the company on April 14, 2023.
IN-STYLE DEVELOPMENTS: Second Creditors' Meeting Set for April 27
-----------------------------------------------------------------
A second meeting of creditors in the proceedings of In-Style
Developments Pty Ltd has been set for April 27, 2023, at 3:00 p.m.
at Level 12, 20 Bridge Street in Sydney, NSW, and via
teleconference.
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 26, 2023, at 5:00 p.m.
Grahame Ward and Edwin Narayan of Mackay Goodwin were appointed as
administrators of the company on March 15, 2022.
PORTER DAVIS: Liquidators Pursue Homeowners Over Unpaid Debts
-------------------------------------------------------------
News.com.au reports that customers at collapsed building firm
Porter Davis are furious as the appointed liquidators have flagged
that they will pursue some of them over unpaid debts.
That's despite many being left tens of thousand of dollars out of
pocket with incomplete homes and facing increased build costs when
they go with another company to finish construction, news.com.au
says.
Last month, Australia's 13th largest home builder Porter Davis
Homes went bust, placing 1,700 projects and another 779 empty
blocks of land in jeopardy across Victoria and Queensland.
From the preliminary investigation, there are more than 1,000
secured and unsecured creditors who are owed more than AUD25
million, news.com.au discloses.
Insolvency firm Grant Thornton was appointed to 14 companies under
the Melbourne-based group Porter Davis.
But in a stern email to customers on April 14, Grant Thornton
warned them that home owners with outstanding payments could be
pursued for money, news.com.au reports.
"The Company hereby gives you formal written notice that the
Company will not undertake any further work in performance of the
Building Contract," the email from Grant Thornton, obtained by
news.com.au, reads.
"We will be in touch with you separately in respect of the payment
of any amounts that the Company might have been entitled to prior
to the date of this notice. The Company reserves its rights in this
regard."
When contacted, Grant Thornton assured news.com.au that this would
not apply to "the majority" of customers especially if they had
lost money from the collapse.
One customer who preferred to remain anonymous told news.com.au
that the liquidators are "seeking more money from suffering
customers".
Grant Thornton told news.com.au there was no need to panic from the
email.
"The Liquidators will not be pursuing payment from Porter Davis
customers who are out of pocket," a company spokesperson said.
"This applies to the majority of Porter Davis customers.
"There are some instances where customers have received the benefit
of up to AUD100,000 in works on their home that have not been paid
for. The liquidators are looking into these cases."
Said Jahani, Matt Byrnes and Cameron Crichton of Grant Thornton
Australia were appointed liquidators of Porter Davis Homes (PDH) on
March 31, 2023.
SAPPHIRE XXVII 2023-1: S&P Assigns Prelim. B+ Rating on E Notes
---------------------------------------------------------------
S&P Global Ratings assigned its preliminary ratings to eight
classes of nonconforming and prime residential mortgage-backed
securities (RMBS) to be issued by Permanent Custodians Ltd. as
trustee of Sapphire XXVII Series 2023-1 Trust. Sapphire XXVII
Series 2023-1 Trust is a securitization of nonconforming and prime
residential mortgages originated by Bluestone Group Pty Ltd. and
Bluestone Mortgages Pty Ltd. (collectively Bluestone).
The preliminary ratings S&P has assigned to the floating-rate RMBS
to be issued by Permanent Custodians Ltd. as trustee for Sapphire
XXVII Series 2023-1 Trust reflect the following factors.
The credit risk of the underlying collateral portfolio and the
credit support provided to each class of notes are commensurate
with the ratings assigned. Note subordination and excess spread
provide credit support. S&P's assessment of credit risk considers
Bluestone's underwriting standards and approval process, and
Bluestone's strong servicing quality.
The rated notes can meet timely payment of interest and ultimate
payment of principal under the rating stresses. Key rating factors
are the level of subordination provided, the provision of a
liquidity facility, the principal draw function, the yield reserve,
retention amount built from excess spread, and the provision of an
extraordinary expense reserve. S&P's analysis is on the basis that
the rated notes are fully redeemed via the principal waterfall
mechanism under the transaction documents by their legal final
maturity date, and it assumes the notes are not called at or beyond
the call-option date.
S&P said, "Our ratings also consider the counterparty exposure to
Commonwealth Bank of Australia as bank account provider, liquidity
facility provider and interest rate swap provider. The transaction
documents for the facilities include downgrade language consistent
with S&P Global Ratings' counterparty criteria.
"We have also factored into our ratings the legal structure of the
trust, which is established as a special-purpose entity and meets
our criteria for insolvency remoteness."
Preliminary Ratings Assigned
Sapphire XXVII Series 2023-1 Trust
Class A1S, A$125.00 million: AAA (sf)
Class A1L, A$250.00 million: AAA (sf)
Class A2, A$74.50 million: AAA (sf)
Class B, A$15.00 million: AA (sf)
Class C, A$13.50 million: A (sf)
Class D, A$9.00 million: BBB (sf)
Class E, A$6.00 million: BB (sf)
Class F, A$3.00 million: B+ (sf)
Class G1, A$2.75 million: Not rated
Class G2, A$1.25 million: Not rated
TAMAROO ENERGY: First Creditors' Meeting Set for April 27
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Tamaroo
Energy Pty. Ltd. will be held on April 27, 2023, at 11:00 a.m. at
Level 8, 100 Creek Street, in Brisbane, Qld, and via virtual
meeting technology.
Stephen Dixon of Hamilton Murphy Advisory was appointed as
administrator of the company on April 14, 2023.
WISE HAULAGE: Second Creditors' Meeting Set for April 21
--------------------------------------------------------
A second meeting of creditors in the proceedings of Wise Haulage
Pty Ltd has been set for April 21, 2023, at 10:00 a.m. via Zoom.
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 20, 2023, at 4:00 p.m.
Robert Allan Jacobs of Auxilium Partners was appointed as
administrator of the company on Sept. 12, 2022.
=========
C H I N A
=========
SUNING.COM: Revises Up Expected 2022 Loss to as Much as USD2.4BB
----------------------------------------------------------------
Yicai Global reports that Suning.Com raised its expected loss for
last year to as much as CNY16.5 billion (USD2.4 billion), citing
factors such as increased liquidity pressure and a more than CNY4.1
billion (USD596.3 million) impairment loss at its Carrefour China
unit.
The net loss was likely between CNY15.5 billion and CNY16.5 billion
(USD2.3 billion and USD2.4 billion) in the 12 months ended Dec. 31,
Suning said in a statement on April 14, the report discloses. That
is higher than the CNY9.5 billion to CNY11.5 billion it predicted
in January, but less than its CNY43.3 billion loss in 2021.
Carrefour China, the supermarket chain majority owned by Suning, is
expected to have had an impairment loss on assets of more than
CNY4.1 billion last year, according to its Nanjing-based parent
company, Yicail Global relays.
Sales declined and margins narrowed at Carrefour China due to a
number of factors, including the external environment, slowing
consumer demand, and price competition from community group buying,
Suning said. Earnings were also impacted by public opinion,
liquidity pressure, and blocked supply chain relationships, it
noted.
Yicai Global relates that Carrefour China closed stores in many
Chinese cities last year, dropping to 151 outlets as of Sept. 30
from 205 at the end of 2021, Suning said in an earlier earnings
report. The supermarket and hypermarket chain operator also had to
rebut several bankruptcy rumors after product shortages and
restricted gift card use at various locations.
The net loss at Carrefour China widened 3,190 percent last month
from a year earlier, while revenue jumped 65 percent, Suning noted.
In comparison, the loss rose 13.4 percent in February from a year
ago, and revenue fell 65 percent, Yicai Global discloses.
Carrefour China remains a key part of Suning's business, the parent
company stressed. Its operations will be systematically improved
using a series of measures, including focusing on advantageous core
cities, closing loss-making outlets quicker, and accelerating the
integrated operations of Carrefour China stores and Suning's white
goods business, it added.
Yicai Global notes that Carrefour entered China in 1995 and
expanded quickly early on, securing a relatively large market
share. But profits began to decline as competition increased. In
2019, the French retailer sold 80 percent of its loss-making China
business to Suning for CNY4.8 billion (USD699 million at the time)
and provided it with a shareholder loan as operating funds.
Suning.Com Co., Ltd., operates consumer electronic products and
appliances sales stores. The Company sells telecommunication
equipment, telecommunication components, household appliances,
digital equipment, refrigerators, washing machines, and other
products. Suning.Com also provides equipment installation and
repairing services.
[*] CHINA: Carmakers Must Turn Profitable to Survive
----------------------------------------------------
Yicai Global reports that Chinese carmakers have been losing money
in recent years. To survive knockout competition in the next few
years, they need to resolve the profitability issue as soon as
possible, according to a managing partner of US consultancy
McKinsey & Company.
To reverse the "blood loss," Chinese automakers can explore various
approaches such as cost- and value-oriented design, high-efficiency
research and development, and identification of core technology
stack control points and capacity building, Guan Mingyu told Yicai
Global at a recent industry forum.
China accounts for about 30 percent of the global auto industry,
but less than 5 percent of its profits, Guan pointed out.
Yicai Global relates that the country's auto market, the world's
biggest, is in a critical period of reshaping, Guan said, noting
that competition in the next three years will enter an elimination
round. The carmakers taking part in the latest price war aim to win
the round, he added.
According to Yicai Global, Guan believes that the Chinese brands
that survive in 2025 will have a place in the global auto industry
and that three to four of the world's top 10 car companies will be
Chinese in 2030.
The liveliness of China's smart electric vehicle market is based on
a severe profit overdraft at car companies, Guan pointed out,
adding that weak profitability not only dampens investor enthusiasm
but also hinders carmakers from developing long-term and
sustainable competitiveness, Yicai Global relays.
"China is a developing market, and it's difficult for local firms
to profit in this environment," Peng Bo, managing partner at
McKinsey Global, told Yicai Global. "They can achieve profitability
after they form an ultra-stable structure following this
elimination round.
"The European and US markets are relatively mature, so even if some
foreign brands withdraw from the Chinese market, their
profitability in the local market will remain stable," Peng noted.
Global passenger car sales are expected to reach about 800 million
between 2021 and 2030, of which 220 million units will be electric
vehicles, according to a McKinsey forecast, Yicai Global relays.
Some 100 million EVs will likely be sold in China in the decade,
contributing to nearly 50 percent of the global total.
=======
F I J I
=======
FIJI: Must Cut Debt Urgently, World Bank Warns
----------------------------------------------
Reuters reports that Fiji must take urgent action to reduce a debt
burden that exceeds 90% of gross domestic product or put at risk
its recovery from the COVID pandemic and plans for sustainable
economic development, the World Bank said on April 18.
Debt has spiralled since 2019, as the tourism-dependent economy was
hit by border closures against COVID-19 and tropical storms that
lashed the Pacific island nation, Reuters says.
Despite authorities' spending restraint during the pandemic,
however, the sharp contraction in output drove up public spending
as a share of GDP, the bank said in a report.
"Levels of (debt at) around 90% (of GDP) leave the country with
limited buffers to address future shocks and highlight the scale
and urgency of the fiscal consolidation required," the bank said.
According to Reuters, the comment came in a statement released
along with the World Bank's Fiji Public Expenditure Report 2023,
sought by the government.
"This situation, combined with emerging global economic risks,
threatens Fiji's macro-fiscal stability, an essential foundation
for sustainable economic and social development," the report said.
Reuters relates that Fiji's government said its biggest lenders are
the Asian Development Bank and World Bank, though it has
outstanding loans from Chinese, Japanese and European Union lending
institutions.
The World Bank report comes just as Fiji's new government strives
to get it back on a path of fiscal sustainability, said Finance
Minister Biman Prasad, who is also deputy prime minister, Reuters
relays.
"The findings . . . will serve as an important consideration and
input in this entire process of fiscal consolidation," he said.
According to Reuters, sovereign debt is in focus after a renewed
push to overcome the logjams followed a "roundtable" at the recent
IMF spring meetings in Washington.
That prompted pledges from the Fund and World Bank to share
assessments of countries' troubles more quickly, provide more
low-interest and grant funding, and set stricter timeframes on
restructurings, Reuters notes.
=========
I N D I A
=========
AAA VEHICLEADES: CRISIL Moves B+ Debt Ratings to Not Cooperating
----------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of AAA
Vehicleades Private Limited (AVPL) to 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 82 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Inventory Funding 3.5 CRISIL B+/Stable (ISSUER NOT
Facility COOPERATING; Rating Migrated)
Proposed Long Term 40.5 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
Rupee Term Loan 4 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with AVPL for
obtaining information through letters and emails dated March 14,
2023 and March 18, 2023 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of AVPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AVPL
is consistent with 'Assessing Information Adequacy Risk'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL Ratings has migrated the rating on
bank facilities of AVPL to 'CRISIL B+/Stable Issuer Not
Cooperating'.
AVPL was incorporated in 2008 by Mr Devender Rana and his wife, Mrs
Gunjan Rana. It is an exclusive dealer for all passenger cars of
MSIL in New Delhi.
AISHWARYA CONSTRUCTION: CARE Cuts Rating on INR49.50cr Loan to B-
-----------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Aishwarya Construction (AC), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 49.50 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated March 17, 2022,
placed the rating(s) of AC under the 'issuer non-cooperating'
category as AC 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. AC continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
January 31, 2023, February 10, 2023, February 20, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings have been revised on account of non-availability of
requisite information.
Aishwarya Construction (AC) was established in November 2018, by
Mr. Suryabhan K. Bhosale and Mrs. Sangeeta Mangrule. However, the
commercial operations of the firm commenced in April 2019. The firm
is engaged in the business of execution of Engineering Procurement
and Construction (EPC) projects in the infrastructure segment
primarily in construction, up gradation, repair and maintenance of
roads.
ALCOB INDIA: CARE Keeps D Debt Ratings in Not Cooperating Category
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Alcob India
Private Limited (AIPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 16.75 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated March 15, 2022,
placed the rating(s) of AIPL under the 'issuer non-cooperating'
category as AIPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. AIPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
January 29, 2023, February 8, 2023, February 18, 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).
Alcob India Private Limited (AIPL), formerly known as Alcob System
Private Limited was incorporated on July 26, 2004 based in Pune
promoted by Mr. Badrinarayan Rajagopalan. AIPL is engaged into
aluminum façade engineering includes designing, engineering,
manufacturing and installation of all types of facade systems, the
advanced curtain-wall and cladding systems which is offered
globally. AIPL's client base includes ITC, Hindustan Unilever,
Sahayadri Hospitals, Ruby Hall Clinic etc. The company operates
from headquarter at Pune however has office in Mumbai, Noida and
Ahmedabad as well.
ALVAS EDUCATION: CARE Keeps D Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Alvas
Education Foundation (AEF) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 183.13 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated February 2,
2022, placed the rating(s) of AEF under the 'issuer
non-cooperating' category as AEF 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. AEF
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated December 19, 2022, December 29, 2022, January 8,
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).
Established in 1995, Alva's Education Foundation (AEF), was founded
by Mr. M Mohan Alva who is a managing trustee and chairman of the
trust. The trust runs schools, high schools, Pre-University (PU)
Colleges offering diverse range of courses in the fields of
Management, Engineering, Medical, Arts, Commerce, Agriculture,
Fashion, Pharmacy, Law, Polytechnic etc.
ANAND HR: CRISIL Lowers Rating on INR7cr Cash Debt to C
-------------------------------------------------------
CRISIL Ratings has revised the rating on bank facilities of Anand
HR Management Private Limited (AHR) to 'CRISIL C Issuer Not
Cooperating' from 'CRISIL B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7 CRISIL C (ISSUER NOT COOPERATING;
Revised from 'CRISIL B/Stable
ISSUER NOT COOPERATING')
CRISIL Ratings has been consistently following up with AHR for
obtaining information through letters and emails dated November 24,
2022 and January 16, 2023 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such
non-co-operation by a rated entity may be a result of deterioration
in its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of AHR, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AHR
is consistent with 'Assessing Information Adequacy Risk'.
Based on the available information, CRISIL Ratings understands that
there remains irregularity in the company's account conduct towards
its banking exposure. Hence, the ratings on bank facilities of AHR
have been revised to 'CRISIL C Issuer Not Cooperating' from 'CRISIL
B/Stable Issuer Not Cooperating'.
Kangra, Himachal Pradesh-based AHR, incorporated in 2012, is
engaged in trading of edible oil under its own brand 'Anand Gold'.
Company is promoted by Mr. Rakesh Anand, who has 20 years of
business experience, and his wife Mrs. Sonia Anand.
AXIS OVERSEAS: CARE Keeps B+ Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Axis
Overseas Limited (AOL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 24.20 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 3.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated February 18,
2022, placed the rating(s) of AOL under the 'issuer
non-cooperating' category as AOL 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. AOL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated April 5, 2023, April 6, 2023, April 7, 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).
Axis Overseas Limited (AOL) was incorporated in December 2005 with
the objective of trading in Jute and Jute related products. Since
its inception company is managed by Mr. Aditya Sarda, promoter of
the company. AOL mainly purchases raw jute locally and also imports
from Bangladesh and sells it to jute mills in West Bengal that
manufacture jute bags/other jute products.
BALAJI ASSOCIATES: CRISIL Lowers Rating on INR8cr Term Loan to B+
-----------------------------------------------------------------
CRISIL Ratings has downgraded its ratings on the bank facilities of
Balaji Associates - Nagpur (BAN) to 'CRISIL B+/Stable/CRISIL A4'
from 'CRISIL BB-/Stable/CRISIL A4+'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 7 CRISIL A4 (Downgraded from
'CRISIL A4+')
Cash Credit 5 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
Term Loan 8 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
The rating action reflects stretched liquidity of the firm. Net
cash accruals are expected to be in the range of INR1.55-1.86
crores which are insufficient against the term debt repayment
obligations of INR2.38 crores and INR2.11 crores for fiscal 2024
and 2025 respectively. Bank limit utilization remains stretched at
78.23 % for the last twelve months ended January 2023.
The rating continues to reflect the extensive experience of the
promoter in the electrical components and equipment industry and
moderate capital structure of BAN. These strengths are partially
offset by modest scale of operations, large working capital
requirement and subdued debt protection metrics.
Analytical Approach
Unsecured loan of INR1.24 crore provided by the promoters as on
March 31, 2022, has been treated as neither debt nor equity, as
these funds are expected to remain in the business.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations amid intense competition: Despite
increase in revenue to INR19.94 crore in fiscal 2022 from INR16.45
crore in fiscal 2021 supported by new government contracts as well
as opening up of operations post Covid-19 pandemic, the operation
remains modest. The firm is estimated to book revenue of around
INR20-21 crores in fiscal 2023. Most of the projects are in Nagpur
which have limited the scalability and overall business prospects.
* Large working capital requirement: Operations are highly working
capital intensive, as reflected in high gross current assets (GCAs)
of 406 days as on March 31, 2022, driven by receivables of 127 days
from government entities and inventory of 47 days. GCAs also
comprise other current assets, which primarily include earnest
money deposits and retention money. This is partly supported by the
firm's ability to stretch its creditors, with payables of 175 days
as on March 31, 2022. Though GCAs are expected to come down to
around 340-360 days as on March 31, 2023, driven by receivables,
owing to the slightly better operations, they will remain large and
will remain key monitorable over the medium term.
* Subdued debt protection metrics: Interest coverage ratio was
subdued at 1.62 times in fiscal 2022 on account of moderation in
revenue as well as increase in debt levels. Though the ratio is
expected to improve over the medium term with recovery in scale of
operations, interest coverage ratio is expected to remain subdued
at around 2.0-2.1 times in fiscal 2023. Net Cash accrual are
expected to be in the range of INR1.55- 1.86 crores which are
insufficient against term debt obligation of INR2.38 crores and
INR2.11 crores for fiscal 2024 and fiscal 2025, respectively.
Strengths:
* Extensive experience of the promoter: The partners of the firm
have an extensive experience of more than two decades in the
electrical components and equipment industry which has enabled them
to develop strong understanding of the market dynamics and
establish strong relationship with suppliers and customers, which
majorly constitute local government bodies.
* Moderate capital structure: Networth and total outside
liabilities to adjusted networth (TOLANW) ratio were moderate at
INR10.06 crore and 2.14 times, respectively, as on March 31, 2022.
The capital structure is expected to remain at similar levels, with
networth and TOLANW estimated to be around INR11 crores and 1.60
times, respectively as on March 31, 2023 and is expected to remain
stable in the absence of any major debt-funded capital expenditure
and with steady accretion to reserve over the medium term.
Liquidity: Stretched
Liquidity is marked stretched with bank limit utilisation at around
78.23 percent for the past thirteen months ended January 2023. Net
Cash accrual are expected to be in the range of INR1.55- 1.86
crores which are insufficient against term debt obligation of
INR2.38 crores and INR2.11 crores for fiscal 2024 and fiscal 2025,
respectively. The promoters are likely to extend support in the
form of equity and unsecured loans (INR1.23 crores as of March 31,
2022) to meet its working capital requirements and repayment
obligations. The partners had withdrawn INR0.53 crore in fiscal
2022 as a result the networth declined. Moderate cash and bank
balance of around Rs.52 lakhs as on March 31, 2022.
Outlook: Stable
CRISIL Ratings believe BAN will continue to benefit from the
promoters' extensive experience and its steady order book.
Rating Sensitivity factors
Upward factors
* Increase in revenue and stable operating margin leading to cash
accrual of more than INR2.00 crore
* Efficient working capital management leading to GCAs of less than
300 days
Downward factors
* Further decrease in revenue or operating margin weakening
liquidity
* Weakening of the financial risk profile, with TOLANW ratio of
more than 3.5 times
BAN was established in Nagpur in 1994 as a proprietorship firm by
Mr Sanjay Chopde. The firm tests, constructs, erects and
commissions sub-transmission lines, new substations, switching
stations, cabling and LED installation work.
DEEPAK AGRO: CARE Keeps B- Debt Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Deepak Agro
Private Limited (DAPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 13.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated February 16,
2022, placed the rating(s) of DAPL under the 'issuer
non-cooperating' category as DAPL 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. DAPL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated January 2, 2023, January 12, 2023, January 22,
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).
Uttar Pradesh based Deepak Agro Private Limited (DAPL) is a company
which commenced its operations in March 1994 and is currently being
managed by Mr. Mahesh Chandra Agnihotri and Mr. Deepak Agnihotri.
DAPL is engaged in processing rice and its by-products by
processing paddy, in its processing unit located in Village
Mainpuri, with capacity of manufacturing 20000
quintals of rice monthly. DAPL procures paddy from local grain
markets through open market and farmers situated locally. It sells
its product in domestic market in nearby regions namely Kanpur,
Delhi, Agra, Lucknow etc. It exports basmati rice in countries like
Japan, Nepal, Bhutan etc. through an exporter based in Gujarat.
EXPOVAN: CRISIL Lowers Rating on INR35cr Export Debt to D
---------------------------------------------------------
CRISIL Ratings has downgraded its rating on the bank facilities of
Expovan (EXPOVA) to 'CRISIL D Issuer Not Cooperating' from 'CRISIL
B/Stable Issuer Not Cooperating' due to delays in servicing debt
obligation.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Export Packing 6 CRISIL D (ISSUER NOT
Credit COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING)
Export Packing 35 CRISIL D (ISSUER NOT
Credit COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING)
Export Packing 30 CRISIL D (ISSUER NOT
Credit COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING)
Foreign Exchange 0.7 CRISIL D (ISSUER NOT
Forward COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING)
Proposed Long Term 1.8 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING)
Working Capital 3.5 CRISIL D (ISSUER NOT
Term Loan COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING)
Working Capital 3 CRISIL D (ISSUER NOT
Term Loan COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING)
CRISIL Ratings has been consistently following up with EXPOVA for
obtaining information through letters and emails dated November 24,
2022 and January 31, 2023 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of PVSBD, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that the rating action on
EXPOVA is consistent with 'Assessing Information Adequacy Risk'
Based on best-available information, CRISIL Ratings has downgraded
its rating on the bank facilities of Expova to 'CRISIL D Issuer Not
Cooperating' from 'CRISIL B/Stable Issuer Not Cooperating' due to
delays in servicing debt obligation
Expova was set up in 2015 by Mr R Mahendran as a partnership firm.
Expova is a 100% export-oriented unit and has set up a 22,000
square feet factory in Pollachi, Tamil Nadu for processing and
exporting of natural Vanilla - its beans, pods and powder
Status of non cooperation with previous CRA:
Expova has not cooperated with Acuite Ratings & Research limited,
which published their ratings as 'issuer not co-operating' through
release dated 23 July 2018. The reason provided by them was
non-furnishing of information by Expova for monitoring the
ratings.
KAILASH ELECTRICALS: CARE Keeps B- Debt Rating in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Kailash
Electricals (KE) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 1.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 11.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated February 14,
2022, placed the rating(s) of KE under the 'issuer non-cooperating'
category as KE 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. KE continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
December 31, 2022, January 10, 2023, January 20, 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).
Kanpur-based (Uttar Pradesh) Kailash Electricals (KE) was formed in
1965 by Mr Devendra Kumar Chickar as a proprietorship concern. KE
is registered as 'A' (highest scale in A to D grade) class approved
government electric contractor with Public Works Department. It
also receives orders on sub-contract basis from other registered
contractors. Further, it also sub-contracts its work to other
registered contractors also.
KAUSHALYA SPINNERS: CARE Lowers Rating on INR8.09cr Loan to B
-------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Kaushalya Spinners (KS), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 8.09 CARE B; Stable ISSUER NOT
Fund-based- COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B+; Stable
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated February 28,
2022, placed the rating(s) of KS under the 'issuer non-cooperating'
category as KS 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. KS continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
January 14, 2023, January 24, 2023, February 3, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings have been revised on account of non-availability of
requisite information.
Kaushalya Spinners (KSP), based in Panipat, Haryana was established
in 1995 as a partnership firm. The firm is currently being managed
by Mr. Jagdish Rai Jain, Mr. Sachin Jain and Mr. Raman Jain as its
partners. KSP is presently engaged in manufacturing of mink
blankets, polyester fabric and semi-finished 3D bed-sheets at its
facility located in Panipat, Haryana.
M L RICE: CARE Keeps B- Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of M L Rice
Mills (MLRM) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 24.50 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated February 4,
2022, placed the rating(s) of MLRM under the 'issuer
non-cooperating' category as MLRM 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. MLRM
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated December 21, 2022, December 31, 2022, January
10, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
M L Rice Mills (MLR) was established in October 1983 as a
partnership firm by Mr Janak Raj and his brothers. The firm is
currently being managed by Mr Janak Raj and his wife, Mrs Sudesh
Rani and their sons, Mr Ashok Kumar and Mr Ashu Girdhar, sharing
profit and losses in the ratio 2:2:3:3. The firm is engaged in the
processing of paddy at its manufacturing facility located in
Fazilka, Punjab.
MAHALAXMI AGRO: CARE Lowers Rating on INR4.77cr LT Loan to D
------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Mahalaxmi Agro Mills (Prop. D.M. Agro Products Private Limited)
(MAMDAPPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 4.77 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE B-; Stable
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated February 4,
2022, placed the rating(s) of MAMDAPPL under the 'issuer
non-cooperating' category as MAMDAPPL 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. MAMDAPPL continues to be non-cooperative despite
repeated requests for submission of information through emails,
phone calls and a letter/email dated December 21, 2022, December
31, 2022, January 10, 2023 and April 10, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The rating assigned to the bank facilities of MAM have been revised
on account of delay in debt servicing as recognized from publicly
available information i.e., FY21 audit report available from ROC
Filings.
Uttar Pradesh based Mahalaxmi Agro Mills (MAM) was established in
the year January 1996 under the company D.M. Agro Products Private
Limited as a private limited and is currently managed by Mr.
Pradeep Kumar Maheshwari, Mr. Prabhat Kumar Maheshwari and Mr.
Anurag Maheshwari. MAM is engaged in the milling, processing and
trading of paddy with an at its manufacturing facility located in
Mainpuri, Uttar Pradesh. The firm is also engaged in processing of
groundnuts at the same manufacturing facility.
MCLEOD RUSSEL: Settlement with IL&FS Likely in Two Weeks
--------------------------------------------------------
Livemint.com reports that McLeod Russel India Ltd and IL&FS are
currently engaged in negotiations towards an out-of-court
settlement, which is expected to be reached within the next two
weeks.
Livemint.com says the Brij Mohan Khaitan group company is
attempting to avoid insolvency through an out-of-court settlement.
IL&FS Infra Asset Management is an asset management company which
manages IL&FS Infrastructure Debt Fund and IIDF is a financial
creditor of McLeod.
According to the report, IIDF applied under a provision of the
Insolvency and Bankruptcy Code against McLeod Russel India Ltd with
the National Company Law Tribunal, Kolkata Bench. This application
has been admitted by the NCLT.
"Our focus remains on reaching a successful out-of-court
settlement, and we expect to have an arrangement in place within
the next two weeks," a senior company official told PTI.
The official, however, refused to disclose the details of the
negotiations.
In the midst of a corporate insolvency resolution process (CIRP),
McLeod cannot proceed with the one-time settlement with the bankers
in association with Carbon Resources as a possible strategic
partner, the report states.
IIDF, a financial creditor of McLeod, filed the petition against
the company for default in payment of INR347.4 crore as on Nov. 12,
2019, of which the principal amount is about INR252.66 crore,
Livemint.com recalls.
Livemint.com relates that McLeod Russel was already exploring
options with the city-based Carbon Resources for a one-time
settlement of its debt to lenders estimated to be around INR1,600
crore. Carbon Resources earlier expressed interest with the McLeod
lenders in taking over the company and settling dues.
The group had lost a key company -- Eveready Industries India Ltd
to the Dabur family in the recent past.
McLeod Russel India Limited (MRIL), the tea plantation company of
the Kolkata-based B.M. Khaitan Group, was originally incorporated
as Eveready Company India Private Ltd. on May 5, 1998. MRIL was
formed after the demerger of the bulktea business from Eveready
Industries India Ltd. (EIIL) with effect from April 1, 2004. MRIL
has acquired several other companies like Williamson Tea Assam in
FY2006, Doom Dooma Tea Company in FY2007 and Moran Tea in FY2008.
These acquisitions helped MRIL increase the number of tea estates
to 53 in India with 33,723 hectares (Ha) of total land under tea
cultivation.
Mcleod Russel commenced insolvency proceedings on Feb. 10, 2023.
MPS TELECOM: CARE Keeps B- Debt Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of MPS Telecom
Retail Private Limited (MTRPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 30.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated February 9,
2022, placed the rating(s) of MTRPL under the 'issuer
non-cooperating' category as MTRPL 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. MTRPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated December 26, 2022, January 5,
2023, January 15, 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).
MTRPL operates mobile phone retail stores in the Southern and
Western region of India and belongs to the Optiemus Group. OIL has
indirect holding in MTRPL through Teleecare Network India Private
Limited in MTRPL. Optiemus Infracom Limited (OIL) was originally
incorporated in the year 1993 as Akanksha Finvest Limited (AFL) as
a NonBanking Financial Company (NBFC). The name of the merged
entity was subsequently changed to the current one: Optiemus
Infracom Limited in June 2011. OIL is the flagship company of the
Optiemus Group and has been engaged in distribution of mobile
handsets of reputed brands like Nokia and Samsung for last 25
years. OIL had started operations with distribution of Nokia
handsets from 1995 till 2006. Thereafter, in 2006, the Company left
Nokia to take the distribution o f Samsung. OIL has also received
Blackberry Brand Rights for four countries.
NEO ISPAT: CRISIL Assigns B Rating to INR4.50cr Demand Loan
-----------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B/Stable' rating to the
bank facilities of Neo Ispat Private Limited (NIPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term
Bank Loan Facility 3.88 CRISIL B/Stable (Assigned)
Term Loan 1.62 CRISIL B/Stable (Assigned)
Working Capital
Demand Loan 4.50 CRISIL B/Stable (Assigned)
The ratings reflect the company's susceptibility to volatility in
raw material prices and modest scale of operations. These
weaknesses are partially offset by the extensive experience of the
promoters in the steel industry and moderately large working
capital requirement.
Analytical Approach:
Of the unsecured loan of INR5.10 crore provided by the promoters as
on March 31, 2022, 75% been treated as equity and 25% as debt, as
the loan is interest free and is expected to remain in the business
over the medium term.
Key Rating Drivers & Detailed Description
Weaknesses:
* Susceptibility to volatility in raw material prices: As raw
material accounts for 80-85% of production cost, the operating
margin will remain exposed to sharp volatility in raw material
prices. The margin is also susceptible to changes in market prices
according to demand-supply situations.
* Modest scale of operations: The iron and steel industry is highly
fragmented, and the consequent intense competition may continue to
constrain scalability, pricing power and profitability. Revenue
stood at INR14.70 crore in fiscal 2022 compared with Rs.12.61 crore
in fiscal 2021. Ability of the company to ramp up operations will
remain a key monitorable.
Strengths:
* Extensive experience of the promoters: The decade-long experience
of the promoters has given them a strong understanding of the
market dynamics and enabled them to establish healthy relationships
with suppliers and customers.
* Moderately large working capital requirement: Operations are
moderately working capital intensive, as reflected in gross current
assets of 95-105 days over the three fiscals through March 2022 and
104.9 days as on March 31, 2022.
Liquidity: Stretched
Bank limit was utilised at 96% on average over the 12 months
through February 2023. Cash accrual is expected at a modest
INR0.45-0.75 crore per annum, but it will cover yearly debt
obligation of INR0.20 crore over the medium term. Current ratio was
low at 0.62 time on March 31, 2022. Liquidity is partially
supported by equity and unsecured loans from the promoters.
Negative networth limits financial flexibility and restricts the
financial cushion available to the company in case of any adverse
conditions or downturns in the business.
Outlook: Stable
NIPL will continue to benefit from the promoters' extensive
experience and healthy relationships with clients.
Rating Sensitivity Factors
Upward factors:
* Sustained increase in revenue and operating margin upto 6%
leading to higher cash accrual
* Efficient working capital management, as reflected in gross
current assets of 90 days
Downward factors:
* Decline in net cash accrual to below INR0.35 crore on account of
fall in revenue or operating profit
* Substantial increase in the working capital requirement weakening
liquidity and the financial risk profile
NIPL, incorporated in 2010, manufactures steel and iron castings,
such as castiron castings, mild steel (MS) angles, MS rounds and MS
flats and squares. The manufacturing facility is in Prantij,
Gujarat. The company is owned and managed by Mr Haresh D. Patel,
Ashish H. Patel and Viralkumar H. Patel.
PRASHANT ENTERPRISES: CARE Keeps D Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Prashant
Enterprises (PE) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Short Term Bank 59.32 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated February 14,
2022, placed the rating(s) of PE under the 'issuer non-cooperating'
category as PE 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. PE continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
December 31, 2022, January 10, 2023, January 20, 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).
Set up in 1979 as partnership firm by Singhal family, Prashant
Enterprises is a manufacturer and exporter of building hardware
materials comprising doorknobs, door handle, ceramic glass,
aluminum doors, window hardware fittings, curtains finials & rods,
tiebacks, holdbacks, etc. The manufacturing facility of Prashant
Enterprises is located in Aligarh (Uttar Pradesh) with total
installed capacity of 2,400 tons of building hardware as on March
31, 2019. The firm procures its raw material (brass, aluminum,
zinc, iron/steel) from suppliers located in nearby areas (e.g.
Aligarh, Hathras, Moradabad etc), whereas it earns all its revenue
from exports to retail chains as well as wholesale traders in UK,
Europe, South Africa and USA.
PRAVESH FINLEASE: CARE Assigns B Rating to INR100cr LT Loan
-----------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Pravesh
Finlease and Estates Private Limited (PFEPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 100.00 CARE B; Stable; Assigned
Facilities
Rationale and key rating drivers
The rating assigned to the bank facilities of PFEPL is primarily
constrained on account of its high project implementation risk
considering significant time overrun, along with presence in
cyclical, competitive and seasonal hospitality industry. The rating
is further constrained on account of limited experience of
promoters in the domestic hospitality market and geographical
concentration risk.
The ratings, however, derive strength from association with Hyatt
Hotels Corporation and strategic location of the proposed hotel
property.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Successful completion of the project and commencement of
commercial operations as per revised schedule within envisaged
cost.
* Achievability of envisaged financial and operational performance
post Commercial Operation Date (COD).
Negative factors
* Delay in completion of the project or significant cost overrun
and ramp up of operations as envisaged.
Analytical approach: Standalone
Outlook: Stable
Stable outlook for the rated facilities reflects achievement of
financial closure for the project debt, strategic location of the
property and its association with 'Hyatt'.
Detailed description of the key rating drivers:
Key weaknesses
* Project implementation risk: The total project cost is INR180
crore which is to be funded in debt-equity ratio of 1.25:1,
consisting of term loan from banks of INR100 crore, promoter's
contribution of INR50 crore as equity share capital and unsecured,
interest-free loans from related parties of INR30 crore considered
Quasi equity since they are subordinated to bank debt as per
sanction terms. The company started project in February 2019 and
out of the total project cost of INR180 crore, PFEPL had incurred a
cost of INR80 crore as on January 31, 2023. The Project was
envisaged to be over by March 2023 and Hotel was supposed to
commence operations from April 2023, however owing to delay in
timely disbursement from the lenders, there are delays in the
project and the project is now envisaged to be over by March 2024
with COD of April 2024, accordingly the company has also applied
for DOCC extension which is under process with the bankers.
* Presence in cyclical, competitive and seasonal hospitality
industry as well as geographical concentration risk: The Indian
hotel industry is highly fragmented in nature with presence of
large number of organized and unorganized players spread across
various regions. Furthermore, the hotel industry is inherently
cyclical in nature with exposure to changes in various factors
including tourist arrivals, social and economic changes, disruption
due to new technology platforms and changing consumer preferences.
Furthermore, PFEPL is exposed to geographical concentration risk
and stiff competition among premium hotels in Jaipur.
* Limited experience of promoters in the domestic hospitality
market: PFEPL is promoted by Mr. Alok Kotahwala and Mrs. Indira
Kotahwala (w/o Mr. Alok Kotahwala). Mr Alok Kotahwala has more than
two decades of experience in gems and jewellery, software, FMCG and
real estate industry. The promoters have limited experience of
hospitality in domestic market and has limited experience in
undertaking large-scale projects.
Key strengths
* Association with Hyatt Hotels Corporation: Hyatt Hotels
Corporation is an American multinational hospitality company that
manages and franchises luxury hotels, resorts, and vacation
properties. Hyatt manages more than 1350 hotels across 69 countries
with 3,50,200 rooms globally and is listed on NYSE. PFEPL has
entered into an agreement with Hyatt India consultancy private
limited (an entity of Hyatt Hotels Corporation) for establishing a
250 room, 5-star luxury hotel under brand name of 'Hyatt Regency'
in Jaipur. Hyatt's global brand presence and well-established
marketing set up is envisaged to help PFEPL in tie-ups with
corporates as well as in attracting tourists through its marketing
channel and its loyalty programs.
* Strategic location of hotel property: Jaipur, popularly known as
the 'Pink City', is an integral part of the Golden triangle
itinerary and attract tourists from all over the world, making it
one of the top leisure destinations in the country. Jaipur is an
emerging MICE as well as a destination wedding location of North
India. The proposed hotel is located 20 km away from Jaipur
International Airport and is situate near Mahindra SEZ. Further,
the company has proposed to build ~12,000 square feet of banquet
hall to attract wedding functions, MICE (MICE stands for Meetings,
Incentives, Conferences and Exhibitions) etc. The banquet hall is
envisaged to be the third largest hall in North India.
Liquidity: Stretched
Time overrun in project implementation due to delay in achieving
financial closure for the proposed debt has resulted in stretched
liquidity. Moreover, as per the current sanction terms, COD for the
project was envisaged in March 2023 and with a moratorium of 1-year
post COD for the first principal repayment, repayment is scheduled
to commence in FY24. With time overrun and revised COD is envisaged
in Q4FY24, the company does not have any moratorium on project
debt. The company has applied for an extension in repayment by one
year and the same is under process for approval with the lenders.
Pravesh Finlease and Estates Private Limited (PFEPL) was
incorporated in year 1996 to carry out broking, recovery agents and
allied services, however it was taken over by Mr. Alok Kotahwala
and Mrs. Indira Kotahwala in 1997-98. From FY19, the current
promoters of the company, decided to venture into the business of
hospitality services. For this purpose, the company has partnered
with Hyatt Hotels Corporation for upbringing of 250 keys hotel in
the name of 'Hotel Hyatt Regency' on land parcel of 5.97 acre
situated near Kanchan Kesari, Mahindra SEZ Road, Jaipur. The resort
will have 250 key rooms, 2 restaurants, large banquet hall of over
12000 square feet, swimming pool, spanning lush green gardens, bar,
spa and all amenities of a deluxe 5- star hotel. Total project cost
is expected to be around INR180 crore, funded though debt-equity
ratio of 1.25x.
RENEW ENERGY: Fitch Assigns 'BB-' Foreign Curr. IDR, Outlook Stable
-------------------------------------------------------------------
Fitch Ratings has assigned Indian renewable power producer ReNew
Energy Global Plc (REGP), parent of ReNew Power Private Limited
(ReNew, BB-/Stable), a Long-Term Foreign-Currency Issuer Default
Rating (IDR) of 'BB-' with a Stable Outlook. Fitch has also
assigned a 'BB-' rating to the proposed senior US dollar notes to
be issued by Diamond II Limited, a Mauritius-based fully owned
subsidiary of REGP. The proposed notes will be unconditionally and
irrevocably guaranteed by REGP.
The guaranteed proposed notes represent REGP's general obligations
and are rated at the same level as REGP's IDR. REGP intends to use
around two-third of notes' proceeds to reduce debt at REGP and its
operating subsidiaries, and use the balance to fund future capex
and investments.
REGP's IDR reflects the group's large, expanding portfolio of
renewable power assets, adequate liquidity and its expectations of
an improved receivables profile. Fitch also expects REGP's high
pace of capex for projects under construction to keep EBITDA net
leverage high in the near to medium term. Even so, Fitch expects
interest cover, measured as EBITDA net interest cover, to remain
adequate for its 'BB-' ratings.
KEY RATING DRIVERS
Leading Producer, Diversified Portfolio: REGP's large size and
diversified portfolio provide economies of scale and operating
leverage, mitigating concentration risk. Its power projects,
including those under construction, are diversified by source and
geography, which reduces risks from adverse climatic conditions.
Fitch expects REGP's wind-based generation to remain at average
historical levels of 25% of plant load factors, after falling to
23% in the financial year ending March 2021 (FY21) because of a
weaker wind season, in line with other Indian wind projects.
Improving Receivables Position: Fitch expects REGP's receivable
days to improve to 169 in FY23, assisted by an increasing exposure
to sovereign-owned entities that make timely payments and a rise in
receipt of payments from state utilities under late payment
surcharge rules since August 2022. Receivable days improved to 231
in 1HFY23 (1HFY22: 272), from above 250 days in FY21 and FY22, on
receipt of payments from state utilities, especially those from
Andhra Pradesh (AP).
REGP expects AP's utilities, which accounted for around 45% of
receivables in FY22, to clear a large part of their long
outstanding dues by July 2023. REGP received eight of 12 monthly
instalments by end-March 2023. REGP's key counterparties,
state-owned power-distribution utilities which account for about
60% of the current offtake, have weak credit profiles, in general.
However, Fitch expects REGP's exposure to them is expected to fall
to around 40% by FY24, as a large part of its capacity under
construction is tied up with counterparties with timely payment
records.
High Capex: Fitch anticipates REGP's EBITDA net leverage to remain
above 6.0x over FY23-FY24 (FY22: 7.5x), before improving to around
5.2x by FY25, underpinned by its larger scale, improving
receivables and large investment plans. Fitch expects the capex for
capacity under construction to remain high at about INR115 billion
a year in FY23 and FY24 (FY22: INR90 billion).
Adequate Financial Profile: Fitch expects REGP's consolidated
EBITDA net interest cover to remain above 1.5x in the near to
medium term, the key negative sensitivity for its 'BB-' ratings.
Interest cover remains adequate as more than half of its borrowings
are fixed rate, and the majority have long-dated maturity. REGP
also has a record of selling stakes at the project level to support
capex and maintain its financial profile. The recent stake increase
by Canadian pension fund CPPIB to more than a 50% economic interest
in REGP could be beneficial over the medium to long term.
Price Certainty, Volume Risk: Fitch believes the long-term power
purchase agreements (PPAs) for the group's operating assets offer
price certainty and long-term cash flow visibility. Fitch expects
more than 90% of group capacity to be sold under PPAs with tenors
of 20-25 years, even as REGP increases direct offtake with
corporate PPAs, which have shorter tenors of around 10-15 years.
Production volume can still vary under the long-term PPAs because
it is based on resource availability, which is affected by seasonal
and climatic patterns.
Healthy Debt-Service Coverage: Fitch monitors the cash flow from
operations (CFO)-based debt-service coverage ratio (CFO + interest
expense/scheduled project debt amortisations + interest expense) at
the holding company and unrestricted projects to analyse liquidity
at the unrestricted portfolio, excluding the three restricted
groups. Fitch expects the ratio to average around 1.3x in the
medium term, higher than the negative sensitivity level of 1x, with
an increase in cash generation from larger operational capacity and
lower receivables.
No Notching for Subordination: Fitch does not notch down the
proposed US dollar notes' rating, in light of its assessment of at
least an average recovery for noteholders. REGP intends to on-lend
part of the notes proceeds by way of a US dollar external
commercial borrowing (ECB) bond and/or optionally convertible
debentures OCDs to three ReNew SPVs, holding 244MW of operating
assets. These assets are proposed to be provided as security for
ECB and/or OCDs to provide a cover of at least 0.6x of the US
dollar notes amount.
The subordination risk is mitigated by access to cash generated
from these assets along with cash available for upstreaming from
REGP's other operating assets, post-servicing debt at these
operating assets. Its view benefits from REGP's large scale and
diversity of projects across geographies, resource types and
counterparties. Fitch also factors in the subordination of the
proposed notes to prior-ranking project debt at operating entities
and US dollar notes issued by ReNew.
Currency Risk: The proposed notes and the ECB are in US dollars,
while REGP's operating cash flow is in Indian rupees, resulting in
exposure to foreign-exchange (FX) risk. REGP will mitigate this
risk by substantially hedging the coupon and principal, resulting
in the issuing entity not bearing the FX risk.
DERIVATION SUMMARY
Fitch views Greenko Energy Holdings (BB/Negative) and Concord New
Energy Group Limited (CNE, BB-/Stable) as REGP's close peers.
Greenko, like REGP, is one of India's leading power producers, with
a focus on renewable energy. However, REGP's operating capacity has
increased to more than Greenko's over the past few years.
REGP's resource risk is lower, with higher exposure of 51% to
solar-based projects (Greenko: 27% solar and 9.5% hydro). Its
counterparty risk is also lower, with 47% capacity contracted with
sovereign-owned entities and the rest with state-owned distribution
companies (42%) and direct sales (11%). Greenko's better credit
assessment than REGP's is supported by the former's stronger
financial access, benefiting from its strong shareholders, which
enables the company to rely on fresh equity for investments and
acquisitions, while using cash generated from operations to
deleverage.
CNE has an attributable wind capacity of 2.9GW across multiple
projects in China. Its feed-in tariffs are stable and counterparty
risk is lower than REGP's because its revenue stream is mostly
reliant on State Grid Corporation of China (A+/Stable) and China's
Renewable Energy Subsidy Fund. In comparison, REGP is larger -
allowing for diversity and granularity across multiple projects -
and has improved financial access after its Nasdaq listing. They
have similar financial profiles, resulting in the same overall
rating assessment.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer:
- Plant load factors in line with average historical performance or
resource assessment studies;
- Plant-wise tariff in accordance with respective PPAs;
- Average receivable days fall to around 169 in FY23 (FY22: 256),
assisted by regular payments from state distribution companies
under late payment surcharge scheme and REGP's increasing exposure
to sovereign-owned entities;
- Asset-level EBITDA margin of 80%-93%, in line with historical
performance or management guidance;
- Capex to increase to about INR115 billion a year in FY23 and FY24
(FY22: INR90 billion);
- No dividend payout in the medium term.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- Net debt/EBITDA below 5.0x on a sustained basis, provided that
there is no significant increase in REGP's overall business risk
profile.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Operating EBITDA/net interest expense below 1.5x for a sustained
period;
- CFO-based debt service coverage ratio at the holding company and
unrestricted projects below 1.0x for a sustained period;
- Significant and prolonged deterioration of the receivable
position;
- Failure to adequately mitigate FX risk.
LIQUIDITY AND DEBT STRUCTURE
Market Access Supports Liquidity: REGP had cash and cash
equivalents of INR52 billion at end-9MFY23, against INR84.6 billion
in debt maturing over the next 12 months, including short-term debt
of INR30.3 billion. Fitch expects the company to generate negative
free cash flow in the near to medium term, due to ongoing capacity
additions. However, this is likely to be mitigated by REGP's policy
and record of raising equity in advance for its projects and its
adequate access to the domestic bank-loan market.
REGP has staggered debt maturities and benefits from a sound mix of
debt in the form of amortising project-level loans, with tenors of
between 13 and 23 years, and five tranches of US dollar notes
totalling USD2 billion, with an earliest maturity date of April
2024
ISSUER PROFILE
REGP is one of leading renewable-energy companies with a total
capacity, including projects under construction, of about 13.4GW in
India. The projects are spread across 10 Indian states and comprise
wind, solar and hydro projects.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
Entity/Debt Rating
----------- ------
ReNew Energy
Global Plc LT IDR BB- New Rating
Diamond II Limited
senior secured LT BB- New Rating
SANGAT PRINTERS: CARE Keeps B+ Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sangat
Printers Private Limited (SPPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.42 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated March 3, 2022,
placed the rating(s) of SPPL under the 'issuer non-cooperating'
category as SPPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. SPPL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
January 17, 2023, January 27, 2023, February 6, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Delhi based Sangat Printers Private Limited (SPPL) is a private
limited company, incorporated in 1994. It is currently being
managed by Mr. Sarabjit Singh and Mrs. Mavleen Kaur. The company is
engaged in printing on paper packaging, leaflets, banners etc. The
company has its printing facility at Haryana, Delhi and Hyderabad.
The raw material for the company includes paper, dyes, etc. which
they procured from various dealers as well as manufacturers based
in Haryana, Uttar Pradesh and Delhi. The company sells its products
to various fast-food companies namely Kentucky Fried Chicken (KFC),
Pizza Hut, Burger King, ACT-II, and Tops etc. located PAN India,
Amazon, Flipkart, etc. DJS Printers Private Limited (DJS) is an
associate concern incorporated in 1984 engaged in manufacturing and
printing of food packaging business.
SARVASTU SPINTEX: CRISIL Assigns B+ Rating to INR52.5cr Term Loan
-----------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable/CRISIL A4'
ratings to the bank facilities of Sarvastu Spintex LLP (SSL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1.3 CRISIL A4 (Assigned)
Cash Credit 20 CRISIL B+/Stable (Assigned)
Term Loan 52.5 CRISIL B+/Stable (Assigned)
The rating reflects SSL's exposure to risks related to ongoing
project, expected leveraged capital structure and susceptibility to
volatility in raw material (Cotton) prices. These weaknesses are
partially offset by its extensive industry experience of the
promoters and adoption of latest machinery in steady industry.
Analytical Approach
CRISIL Ratings has considered standalone financial approach for
bank loan rating of STL. Unsecured loan has been treated as neither
debt nor equity. Unsecured loan is treated as Neither debt nor
equity.
Key Rating Drivers & Detailed Description
Weaknesses:
* Exposure to risks related to ongoing project: SSL is scheduled to
commence its operations in July 2024. Demand risk is also expected
to be moderate as the industry is highly fragmented marked by low
entry barriers with small capital and technological requirements.
Also, will be exposed to intense competition from other players in
the segment. Timely completion and successful stabilization of its
operations at the new unit will remain a key rating sensitivity
factor.
* Susceptibility to volatility in raw material (Cotton) prices: The
textile spinning industry has several unorganized players with
small capacities. The entry barriers to the industry are low due to
limited capital and technology requirements and little
differentiation in end products. These factors will continue to
exert pricing pressure over the medium term. Moreover, revenue and
profitability will remain susceptible to volatility in the price of
raw material, cotton.
Strengths:
* Extensive industry experience of the promoters: The promoters Mr.
Hasmukhbhai Bhatasna, Mr. Ashwinbhai Bhatasna, Mr. Mukeshbhai
Shivjibhai Savsani and Mr. Rajeshbhai Shivjibhai Savsani, have an
experience of almost two decades in Textile industry. This has
given them an understanding of the dynamics of the market and
enabled them to establish relationships with suppliers and
customers.
* Adoption of latest machinery in steady industry: SSL is currently
in process of setting a new unit, the unit installed is equipped
with latest equipment & technology. Therefore, the adoption of
latest machinery in steady textile industry would support its
business profile.
Liquidity: Stretched
Cash accruals are expected to be over INR5-8 crores which are
sufficient against term debt obligation of INR5 to 6.5 crores over
the medium term. In addition, it will be act as cushion to the
liquidity of the company.
Current ratio is moderate as on March 31, 2022.
Outlook: Stable
CRISIL Ratings believes that SSL will benefit over the medium term
from its promoter extensive industry experience.
Rating Sensitivity factors
Upward factors:
* Stabilizes operations at its proposed plant in time and reports
significant revenue and profitability.
* Healthy operating margins with net cash accruals more than 1
crore in fiscal 2024
Downward factors:
* Faces a considerable delay in the commencement of its operations.
* Low profitability resulting in interest coverage less than 1 time
in fiscal 2024
* Witnesses a substantial increase in its working capital
requirements thus weakening its liquidity & financial profile
SSL was established in year 2022. SSL is currently setting up a
plant to manufacture cotton yarn in Morbi, Gujarat with installed
capacity of 5250 MTPA. The plant is expected to be commissioned in
July 2024.
SSL is owned & managed by Hasmukhbhai Prabhulal Bhatasna,
Ashwinbhai Manjibhai Bhatasna, Mukeshbhai Shivjibhai Savsani and
Rajeshbhai Shivjibhai Savsani.
SHIRIDI SAIRAM: CRISIL Lowers LT/ST Loan Rating to D
----------------------------------------------------
CRISIL Ratings has downgraded its ratings on the bank facilities of
Sri Shiridi Sairam Rice Mill (SSSRM) to 'CRISIL D/CRISIL D' from
'CRISIL B/Stable/CRISIL A4'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Rating - CRISIL D (Downgraded from
'CRISIL B/Stable')
Short Term Rating - CRISIL D (Downgraded from
'CRISIL A4')
The downgrade reflects delay in servicing the term debt obligation
for the month of March due to delayed receivables.
The rating reflects susceptibility to price volatility risk, modest
scale of operations and weak financial risk profile. These
weaknesses are partially offset by the Extensive industry
experience of the promoters and moderate working capital cycle.
Key Rating Drivers & Detailed Description
Weakness:
* Susceptibility to price volatility risk: The price volatility
risk is attributed to ago-climatic risk which is dependent on
adequate and timely monsoon. Thus, SSSRRM is exposed to the risk of
limited availability of its key raw material during a weak monsoon.
Also, raw material price is linked to international prices of
commodity. Competition from peers could have adverse impact on
profit margin.
* Modest scale of operation: SSSRRMs business profile is
constrained by its scale of operations in the intensely competitive
Agriculture - Others industry. SSSRRMs scale of operations will
continue limit its operating flexibility.
* Weak financial profile: SSSRRM has average financial profile
marked by gearing of 3.15 and total outside liabilities to adj
tangible networth (TOL/ANW) of 4.04 for year ending on March 31,
2022. SSSRRM's debt protection measures have also been at weak
level in past due to high gearing and low accruals from the
operations. The interest coverage and net cash accrual to total
debt (NCATD) ratio are at 1.22 times and 0.01 times for fiscal 2022
.SSSRRM debt protection measures are expected to remain at similar
level with high debt levels.
Strengths
* Extensive industry experience of the promoters: The promoters
have an experience of over around decade in Agriculture - Others
industry. This has given them an understanding of the dynamics of
the market and enabled them to establish relationships with
suppliers and customers.
* Moderate working capital cycle: Gross current assets were at
160-140 days over the three fiscals ended March 31, 2022. Its
moderate working capital management is reflected in its gross
current assets (GCA) of 165 days as on March 31, 2022. It is
required to extend long credit period in line with the industry
standards. As, the customers are small and medium size player who
require credit. Furthermore, to meet its business requirement, it
hold large work in process & inventory.
Liquidity: Poor
Bank limit utilisation is high at around 99.85 percent for the past
twelve months ended Dec-2022. Cash accruals are expected to be over
INR20 lakhs which are sufficient against term debt obligation of
around INR19 lakhs over the medium term. In addition, it will be
act as cushion to the liquidity of the firm.
Current ratios are moderate at 1.35 times on March 31, 2022.
Rating Sensitivity Factors
Upward factor
* Sustained improvement in scale of operation by 30% and sustenance
of operating margin, leading to higher cash accruals
* Improvement in working capital cycle
SSSRRM was established in 2013 by Mr. Surya Rao & family. SSSRRM
operates a rice mill. SSSRRM market it under brand name "SSS" and
"Double bull" "Double Peacock" and new quality of rice Swarna
1061,1010,1001. It has its manufacturing facility is located in
Vedurumudi, East Godavari District, & Andhra Pradesh.
SINCERE CONSTRUCTION: CARE Cuts Rating on INR5.00cr Loan to B-/A4
-----------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Sincere Construction (SC), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/Short 5.00 CARE B-; Stable/CARE A4;
Term Bank ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE B; Stable/CARE A4
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated March 4, 2022,
placed the rating(s) of SC under the 'issuer non-cooperating'
category as SC 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. SC continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
January 18, 2023, January 28, 2023, February 8, 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 bank facilities of SC have been revised on
account of non-availability of requisite information.
Sincere Construction (SC) was incorporated in 1992 as a partnership
firm by Mr. Ved Prakash and his wife, Ms. Renu Prakash. They manage
the overall business operations of the firm. SC is engaged in
execution of civil construction projects such as construction of
road and bridges mainly for National Highway Authority of India
(NHAI), Allahabad Development Authority (ADA) and PWD (Public
Welfare Department) in Delhi, Uttar Pradesh, and Bihar.
SRI SPINNERS: CARE Keeps B- Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sri
Spinners (SS) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.57 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated January 31,
2022, placed the rating(s) of SS under the 'issuer non-cooperating'
category as SS had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. SS continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
December 17, 2022, December 27, 2022, January 6, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Dindugal (Tamil Nadu) based Sri Spinners (SS) was established as a
partnership firm on July 14, 2017. Mr. R. Thiyagarajan and Mr S.
Somasundharam are the partners of the firm. The firm proposes to
establish a spinning mill with installed capacity of 10,000
spindles per month. The estimated project cost is INR12.70 crore,
of which INR4.60 crore is financed by way of term loan, INR2.00
crore by way of unsecured loan from partners and the remaining
INR6.10 crore by way of own funds. The firm will be engaged in
manufacturing of polyester cotton yarn of 54' no count which is
used in manufacturing of Polyester cotton fabrics. The firm
procures raw cotton and polyester from local suppliers in and
around Dindugal District in Tamil Nadu. SS started its trail run on
July 14, 2018 and is expected to start its commercial operations
from September, 2018. However, during the trail run period SS
executed orders of INR0.33 crore to Maliyan Textiles (Mumbai) as on
August 29, 2018. The expected to targeting the customers in and
around Dindigul, Salem and Tirupur in Tamil Nadu, Karnataka, Kerala
and Maharashtra states.
WOMENS NATIONAL: CARE Keeps B- Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Womens
National Education Society (WNES) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.05 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated January 31,
2022, placed the rating(s) of WNES under the 'issuer
non-cooperating' category as WNES 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. WNES
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated December 17, 2022, December 27, 2022, April 05,
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).
Womens National Education Society (WNES) is registered under
society's registration act 1860. WNES was founded in 1918 by Ms.
Besant then joined by society members, Mr. Kudpi Jagadish Shenoy
(President), Mr. Manel Annappa Nayak (Vice President) Mr. K.
Devanand Pai (Secretary) and other members in 1943 for running the
society. WNES presently manages seven Schools & Colleges under the
society namely MSNM Besant Institute of PG Studies (MBA), Besant
Higher Primary School (1st to 7th), Besant National High School
(8th to 10th), Besant English School (1st to 10th), Besant National
PU College (Science, Commerce and Arts), Besant Women's College
(Degree & PG) and Besant Evening College (Degree & PG) in the
Mangalore, Karnataka state, India.
===============
M A L A Y S I A
===============
1MDB: Malaysia to Review $3.9BB Settlement Deal with Goldman Sachs
------------------------------------------------------------------
Bernama reports that the Special Task Force on 1Malaysia
Development Berhad (1MDB) is now focusing its effort on reviewing
the settlement deal between Goldman Sachs and the previous
Perikatan Nasional-led (PN) government, Prime Minister Datuk Seri
Anwar Ibrahim said April 17.
He said that based on initial findings, the task force led by
Titiwangsa Member of Parliament Datuk Seri Johari Abdul Ghani
believed that the settlement deal should be reviewed, Bernama
relates.
"I agree because from the very start, I found that the deal was
made in haste, and that's why it raised a lot of questions . . .
because we should get a bigger amount," Bernama quotes Anwar as
saying.
"The deal with IPIC (International Petroleum Investment Co) for
example, . . . they want to settle with a lesser amount, but we
stood firm and we got US$1.8 billion, that's huge."
"That's why I said some people underestimate the importance of
transparency and firmness, but this is about saving the people's
money," he told reporters after launching Sayr Al-Salikin's
Masterpieces (4 Volumes) and Hikayat Iskandar Zulkarnain at Wisma
Dewan Bahasa dan Pustaka on April 17, Bernama relays.
Bernama relates that Anwar said this in response to a question on
the latest development of the task force set up last month.
It was reported that Goldman Sachs had paid MYR11 billion and
guaranteed the return of US$1.4 billion (MYR6.1 billion) in seized
1MDB assets to the Malaysian government in 2020 as part of a
settlement reached after several years of negotiations initiated by
the first Pakatan Harapan government, and later continued by the
succeeding PN government under then prime minister Tan Sri
Muhyiddin Yassin.
About 1MDB
Kuala Lumpur-based 1Malaysia Development Bhd (1MDB) is an insolvent
Malaysian strategic development company, wholly owned by the
Malaysian Minister of Finance. 1MDB was established in 2009 to
foster long-term economic development for the country by forging
global partnerships, particularly in energy, real estate, tourism,
and agribusiness.
The Company was founded shortly after Dato Sri Najib Razak became
Prime Minister of Malaysia in July 2009. Najib said the
establishment of 1MDB into a federal entity was to benefit a
majority of Malaysians.
1MDB is said to have raised billions of dollars in bonds, for
investment projects and joint ventures, between 2009 and 2013.
Among those projects are the Tun Razak Exchange, Tun Razak
Exchange's sister project Bandar Malaysia, and the acquisition of
three independent power producers.
The Company came into heavy scrutiny in 2015 for suspicious money
transactions and evidence pointing to money laundering, fraud and
theft. The corruption scandal in 1MDB has implicated high-level
officials, including Prime Minister Najib Razak, as wells as banks
and financial institutions around the world.
In 2016, the U.S. Department of Justice filed a lawsuit, alleging
that at least US$3.5 billion has been stolen from 1MDB. In
September 2020, the alleged amount stolen had been raised to US$4.5
billion and a Malaysian government report listed 1MDB's outstanding
debts to be US$7.8 billion.
Malaysia has been filing lawsuits over the years in an effort to
recover the missing billions of dollars. Among others, in May
2021, Malaysia filed 22 civil suits against entities and people
involved in the corruption scandal, including units of Deutsche
Bank and JP Morgan.
Malaysia said in September 2020 it has so far recovered about
US$3.24 billion in assets linked to the 1MDB matter. This amount
includes about US$600 million cash and assets returned by U.S.
authorities; about US$2.5 billion paid by Goldman Sachs as
settlement; as well as US$780 million in settlement amounts from
Malaysian banking group AmBank and audit firm Deloitte.
=====================
N E W Z E A L A N D
=====================
BOBUX INTERNATIONAL: Placed in Receivership
-------------------------------------------
News.com.au reports that a major children's retailer has gone bust
after a bank appointed receivers to recoup their money.
On April 11, New Zealand business Bobux, which sells shoes for
young children, collapsed.
Conor McElhinney and Andrew Grenfell of insolvency firm
McGrathNicol have been appointed as receivers and managers of Bobux
and related its companies, news.com.au discloses.
They are acting on behalf of the Bank of New Zealand.
News.com.au says the brand, which was popular with young parents,
had headquarters in New Zealand but staff in Australia.
Bobux widely sold to Australian customers, with a dedicated
warehouse in the country and a large online presence, making
Australia one of its primary markets.
In New Zealand, 25 employees will be impacted, as will eight staff
members in Indonesia, and one in Australia and another in Denmark,
which corresponds with where the company had warehouses,
news.com.au relates.
At this stage, the receivers are unsure of how much money the
company owes or the number of creditors, the report notes.
Bobux International Limited was established more than 30 years ago
but suffered an unsustainable drop in sales due to the Covid-19
pandemic, news.com.au notes.
"The business suffered significant supply chain disruptions from
Covid-19 that resulted in overstocking to combat delays and
challenges with an IT system overhaul," McGrathNicol said in a
statement to news.com.au.
Bobux made more than NZD20 million in annual sales.
The receivers are now looking to sell the business, the report
adds.
DREAM HOME: Court to Hear Wind-Up Petition on April 20
------------------------------------------------------
A petition to wind up the operations of Dream Home Builders Limited
will be heard before the High Court at Auckland on April 20, 2023,
at 10:45 a.m.
Carters Building Supplies Limited filed the petition against the
company on Nov. 11, 2022.
The Petitioner's solicitor is:
Philip John Morris
Stace Hammond Lawyers
KPMG Building, Level 7
85 Alexandra Street
Hamilton 3240
EKO CARBON: Creditors' Proofs of Debt Due on April 20
-----------------------------------------------------
Creditors of:
- Eko Carbon NZ Limited;
- Eko Group Holdings Limited;
- Eko Switch EV Solutions Limited;
- Ekocabs Gisborne Limited;
- Ekocabs Ōtautahi Limited;
- Ekocharge NZ Limited; and
- Fulcrum Shopfittings Limited
are required to file their proofs of debt by April 20, 2023, to be
included in the company's dividend distribution.
Eko Carbon NZ Limited, Eko Group Holdings Limited, Eko Switch EV
Solutions Limited, Ekocabs Gisborne Limited, Ekocabs Ōtautahi
Limited, and Ekocharge NZ Limited commenced wind-up proceedings on
March 16, 2023.
Fulcrum Shopfittings Limited commenced wind-up proceedings on March
20, 2023.
The company's liquidator is:
Heath Gair
Palliser Insolvency
PO Box 57124
Mana, Porirua 5247
METRO ADMIN: Court to Hear Wind-Up Petition on May 12
-----------------------------------------------------
A petition to wind up the operations of Metro Admin Pay Services
Limited will be heard before the High Court at Auckland on May 12,
2023, at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Sept. 8, 2022.
The Petitioner's solicitor is:
Cloete Van Der Merwe
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
SANDERS MANUFACTURING: Creditors' Proofs of Debt Due on May 19
--------------------------------------------------------------
Creditors of Sanders Manufacturing Limited are required to file
their proofs of debt by May 19, 2023, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on April 6, 2023.
The company's liquidator is:
Garry Whimp
Blacklock Rose Limited
PO Box 6709
Victoria Street West
Auckland 1142
SATGUR ORCHARD: Court to Hear Wind-Up Petition on May 22
--------------------------------------------------------
A petition to wind up the operations of Satgur Orchard Limited will
be heard before the High Court at Tauranga on May 22, 2023, at
10:00 a.m.
Barham United Welldrillers (2021) Limited filed the petition
against the company on March 10, 2023.
The Petitioner's solicitor is:
Jesse Savage
Norris Ward McKinnon
711 Victoria Street
Hamilton 3204
ZARTAJ DESIGN: Court to Hear Wind-Up Petition on April 24
---------------------------------------------------------
A petition to wind up the operations of Zartaj Design And Hosting
Limited will be heard before the High Court at Whangarei on April
24, 2023, at 10:00 a.m.
Bayleys Valuations Limited filed the petition against the company
on Dec. 21, 2022.
The Petitioner's solicitor is:
B. Pamatatau
Bruce Pamatatau, Barrister
Level 6, 5 Short Street
Newmarket, Auckland
=================
S I N G A P O R E
=================
70 SHENTON: Members' Final Meeting Set for May 17
-------------------------------------------------
Members of 70 Shenton Pte. Ltd. will hold their final general
meeting on May 17, 2023, at 11:30 a.m., at 50 East Coast Road,
#B1-18 Roxy Square, in Singapore.
At the meeting, Tan Chin Ren, the company's liquidator, will give a
report on the company's wind-up proceedings and property disposal.
A ASSET: Court to Hear Wind-Up Petition on May 5
------------------------------------------------
A petition to wind up the operations of A Asset Automobile Pte Ltd
will be heard before the High Court of Singapore on May 5, 2023, at
10:00 a.m.
Maybank Singapore Limited filed the petition against the company on
April 12, 2023.
The Petitioner's solicitors are:
Shook Lin & Bok LLP
1 Robinson Road
#18-00, AIA Tower
Singapore 048542
EISHINKAN SINGAPORE: Creditors' Proofs of Debt Due on May 17
------------------------------------------------------------
Creditors of Eishinkan Singapore Pte. Ltd. are required to file
their proofs of debt by May 17, 2023, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on April 11, 2023.
The company's liquidator is:
Mitani Masatoshi
c/o 10 Anson Road
#14-06 International Plaza
Singapore 079903
NEW ENGLAND: Members' Final Meeting Set for May 17
--------------------------------------------------
Members of New England Investments Pte. Ltd. will hold their final
general meeting on May 17, 2023, at 10:00 a.m., at 180 Cecil Street
#12-04, in Singapore and by video conference and/or tele-conference
via Zoom.
At the meeting, Tow Juan Dean and Yiong Kok Kong, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.
RAILSBANK TECHNOLOGIES: Placed in Provisional Liquidation
---------------------------------------------------------
Mr. Ong Shye Wen and Mr. Saw Meng Tee of EA Consulting Pte Ltd (a
subsidiary of EisnerAmper PAC) on April 12, 2023, were appointed as
provisional liquidators of Railsbank Technologies Pte Ltd and
Payrnet Pte Ltd.
The provisional liquidators can be reached at:
Ong Shye Wen
Saw Meng Tee
EA Consulting
1 North Bridge Road
#23-05 High Street Centre
Singapore 179094
=====================
S O U T H K O R E A
=====================
[*] S. KOREA: To Expand Saving Bank Checks to Prevent Insolvency
----------------------------------------------------------------
Pulse reports that South Korea's financial authorities will
drastically reform the country's 10-year-old system to better
manage and supervise savings banks as the failures of U.S. Silicon
Valley Bank and Credit Suisse Group AG have heightened
uncertainties in the global financial market and concerns over
non-performing real estate project financing loans in the country,
according to sources from the financial circle on April 16.
According to Pulse, the Financial Supervisory Service is
considering expanding the scope of its inspection to include
savings banks with potential insolvency risks by shifting the
inspection criteria from asset size to financial soundness,
profitability and liquidity indicators. The Pulse relates that the
FSS is likely to first adopt the Bank for International
Settlements' capital adequacy ratio, a key gauge of financial
soundness at banks. In this regard, the saving banks whose BIS
ratios are at the bottom of the industry are highly likely to be
subject to inspection, even if they exceed the regulatory standard
of 8 percent.
Currently, the FSS and the Korea Deposit Insurance Corp. jointly
inspect savings banks with total assets of KRW2 trillion (US$1.53
billion) or more every two years, the report notes. The system was
created to strengthen supervision on large savings banks after a
savings banks crisis in the early 2010s.
At that time, there were only two saving banks subject to the
mandatory inspection, SBI Savings Bank Inc. and Acuon Capital Corp.
However, the local savings bank industry grew rapidly amid interest
rate hikes following the outbreak of the Covid-19 pandemic and the
number of those subject to the inspection increased to 20 at the
end of last year.
Under the current system, the FSS and the KDIC must inspect all of
the large banks in 2024, the report says. Given that the Korea
Federation of Savings Banks has 79 members now, 25 percent of all
savings banks are subject to inspection. Furthermore, there are
eight savings banks that can soon be subject to mandatory
inspection as their assets are more than KRW1.5 trillion and less
than KRW2 trillion, the Pulse notes.
"After channeling manpower and resources into the inspection of all
these large savings banks, it will be physically impossible to
inspect the remaining savings banks," an FSS official expressed
concern. "Furthermore, given that the number of savings banks with
assets of more than KRW2 trillion is expected to increase further,
we may face a situation soon in which we cannot complete our
inspections even if we inspect only large savings banks throughout
the year."
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2023. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
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TCR-AP subscription rate is US$775 for 6 months delivered via e-
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thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000.
*** End of Transmission ***