/raid1/www/Hosts/bankrupt/TCRAP_Public/230426.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 26, 2023, Vol. 26, No. 84
Headlines
A U S T R A L I A
ASCENT INVESTMENT: Court Orders Scheme Into Liquidation
DYNO DYNAMICS: First Creditors' Meeting Set for May 3
ELLUME LTD: Court Allows Urgent Meeting of Creditors
JMA HARDWARE: Second Creditors' Meeting Set for May 3
LISEO ENTERPRISES: Second Creditors' Meeting Set for May 2
LOVE YOUR WORLD: Second Creditors' Meeting Set for April 28
REFOCUS FINANCIAL: Director Sentenced to Six Years Imprisonment
TILLER RIDES: Second Creditors' Meeting Set for May 2
C H I N A
CHINA EVERGRANDE: Unit Sells Property Assets for USD0.30
VNET GROUP: Fitch Affirms & Then Withdraws 'B-' LongTerm IDRs
I N D I A
AGARWAL GENERAL: CARE Keeps B Debt Rating in Not Cooperating
AKAL PIPE: CARE Keeps C Debt Rating in Not Cooperating Category
ANNAPURNA INDUSTRIES: CARE Keeps B- Debt Rating in Not Cooperating
CARNATION CREATIONS: CARE Keeps B- Debt Rating in Not Cooperating
DIACTINIC DEVELOPERS: CARE Keeps B Debt Rating in Not Cooperating
DOSTI REALTY: CARE Lowers Rating on INR150cr LT Loan to D
ELEMENTION HEALTH: Voluntary Liquidation Process Case Summary
G V AUDIO: CARE Keeps D Debt Rating in Not Cooperating Category
GAUTAM CEMENT: CARE Lowers Rating on INR8cr LT Loan to B
HARMAN RICE: CARE Keeps D Debt Ratings in Not Cooperating
HINDUSTAN PHOTO: Liquidation Process Case Summary
HOTEL DEEPALI: CARE Lowers Rating on INR7.26cr LT Loan to B
ISHER FINANCE: Voluntary Liquidation Process Case Summary
KRISHNA IMPEX: CARE Keeps B- Debt Rating in Not Cooperating
M L AGROFOODS: CARE Keeps B Debt Rating in Not Cooperating
MALLIKHARJUNA AGENCIES: CARE Keeps B- Rating in Not Cooperating
PARAS GOTTAM: CARE Keeps B- Debt Rating in Not Cooperating
PATHY ASSOCIATES: CARE Keeps B+ Debt Rating in Not Cooperating
PIYUSH JEWELLERS: Voluntary Liquidation Process Case Summary
PREET LAND: CARE Keeps D Debt Rating in Not Cooperating Category
RADISSION RESOURCES: Liquidation Process Case Summary
RAO BHARAT: CARE Keeps B- Debt Rating in Not Cooperating Category
RATNAWALI DAIRY: CARE Keeps B- Debt Rating in Not Cooperating
REDHU FARMS: Insolvency Resolution Process Case Summary
SAECO STRIPS: CARE Keeps B+ Debt Rating in Not Cooperating
SAI FERTILITY: CARE Keeps B- Debt Rating in Not Cooperating
SANGAM STEELS: CARE Keeps B- Debt Rating in Not Cooperating
SGS MARKETING: CARE Lowers Rating on INR7cr LT Loan to B+
SHIVA GINNING: CARE Lowers Rating on INR5.83cr LT Loan to B-
SOCIETY DISTRIBUTORS: CARE Keeps B- Debt Rating in Not Cooperating
SWASTIK HOUSING: CARE Keeps B- Debt Rating in Not Cooperating
VEE AAR: CARE Keeps B Debt Rating in Not Cooperating Category
VIDEOCON INDUSTRIES: SC Seeks Twinstar, RP Replies on Dhoot Plea
WOODVILLE PALACE: CARE Keeps D Debt Rating in Not Cooperating
M O N G O L I A
MONGOLIAN MINING: Fitch Assigns 'B' Rating on Proposed USD Notes
MONGOLIAN MINING: Moody's Gives First Time 'B3' Corp. Family Rating
N E W Z E A L A N D
ABCHAL INVESTMENTS: Court to Hear Wind-Up Petition on May 12
K F CONSTRUCTION: Court to Hear Wind-Up Petition on May 12
MF OFSOSKE: BDO Christchurch Appointed as Receiver and Manager
REVELL FAMILY: Garry Whimp Appointed as Liquidator
S I N G A P O R E
DUTHANE INDUSTRIAL: Creditors' Meetings Set for May 3
FAR EAST: Court to Hear Wind-Up Petition on May 12
HOMESTEAD HOLLAND: Creditors' Meetings Set for May 2
[*] Distressed Property Listings in Singapore Jump in Q1
S O U T H K O R E A
TERRAFORM LABS: Prosecutors Indict Co-Founder Over Crypto Crash
S R I L A N K A
CO-OPERATIVE INSURANCE: Fitch Lowers National IFS Rating to BB(lka)
V I E T N A M
SAIGON THUONG: Moody's Affirms 'B3' Deposit & Issuer Ratings
- - - - -
=================
A U S T R A L I A
=================
ASCENT INVESTMENT: Court Orders Scheme Into Liquidation
-------------------------------------------------------
The Federal Court has ordered that Ascent Investment and Coaching
Pty Ltd be wound up on just and equitable grounds, together with
the managed investment scheme operated by Ascent.
The orders follow freezing orders obtained by ASIC against Ascent
and its director, Michael Dunjey, in December 2021 and ASIC's
application to wind up Ascent in March 2022.
Matthew Donnelly and Sean Holmes of Deloitte Financial Advisory Pty
Ltd were appointed as liquidators to Ascent and the managed
investment scheme. Mr. Donnelly and Mr. Holmes were also appointed
receivers over the Ascent Trust.
The Federal Court's reasons and certain orders are currently
subject to a non-publication order. A redacted copy of the Court's
orders is linked to this media release. The Court will consider
whether the non-publication order should be lifted at a future
hearing.
ASIC's investigation into Ascent is continuing.
Any person who is concerned they have invested with Ascent can
contact ASIC at Ascent.Investigation@asic.gov.au or the
liquidators of Ascent.
Further information for consumers and things to check before you
invest, can be found at Moneysmart.gov.au/investment-warnings.
On Dec. 13, 2021, the Federal Court made orders freezing the assets
of Ascent and its director, Micheal Dunjey, who was also ordered to
surrender his passport and be restrained from departing Australia.
On Dec. 20, 2021, those orders were extended by consent until
further order.
On March 1, 2022, ASIC made an application to the Federal Court to
wind up Ascent and for the appointment of provisional liquidators
to Ascent.
On June 3, 2022, Court made orders appointing provisional
liquidators to Ascent.
DYNO DYNAMICS: First Creditors' Meeting Set for May 3
-----------------------------------------------------
A first meeting of the creditors in the proceedings of Dyno
Dynamics (Aust) Pty Ltd will be held on May 3, 2023, at 3:00 p.m.
via virtual meeting.
Frank Lo Pilato and Tristana Steedman of RSM Australia Partners
were appointed as administrators of the company on April 20, 2023.
ELLUME LTD: Court Allows Urgent Meeting of Creditors
----------------------------------------------------
The Australian reports that the administrators of failed Covid-19
testing firm Ellume Limited have been granted leave to hold an
urgent creditors meeting in a bid to save its AUD56 million bailout
deal with Hough Pharma.
According to the report, a federal court judgment will allow the
administrators to hold a meeting on Friday, April 28, with a
shortened amount of time required to alert creditors that the
meeting will take place.
The Australian relates that the creditors will be asked to vote on
extending the "long stop date" under the current deed of company
arrangement (DOCA), to allow Hough more time to secure funding for
the US$38 million deal.
Brisbane-based Ellume called in administrators FTI Consulting in
August after a bid to take on the US market resulted in losses of
more than AUD100 million, the report says.
Founded in 2009 by Sean Parsons, the company rose to prominence
with its rapid testing technology and large contracts with the US
government.
At the time it was placed in administration Ellume owed creditors
an estimated AUD49 million and employees about AUD1.69 million, The
Australian discloses. Convertible note holders, which included
biotech Qiagen, were owed about AUD89 million.
Ellume's creditors, at a meeting held in December, voted
overwhelmingly to back the deal with Hough, however the "end date"
of the deal, of April 4, was not met, The Australian notes.
"The deed administrators and Hough agreed to a number of extensions
to extend completion of the DOCA to April 28, 2023 to allow Hough
additional time to finalise its overseas funding of the
contribution amount," the judgment, as cited by The Australian,
said.
However if the conditions of the deal are not met by April 28 - the
so-called "long stop date" - the company will be wound up under the
terms of the DOCA.
"Yesterday, the deed administrators received a request from Hough
to vary the definition of long stop date to June 12, 2023," the
judgment said.
"That request was made on the basis that Hough requires additional
time to finalise its funding of the contribution amount in order to
attend to completion."
The Australian relates that the judgment said under the DOCA
creditors will receive returns ranging from 100 per cent for
secured creditors to 0c-20c for unsecured creditors, but if the
deal were to fall over, there would be no return to creditors at
all.
"Based on current information, the deed administrators consider
that if the DOCA is completed, there will be a likely return to
priority creditors of 100c in the dollar, secured creditors of 100c
in the dollar, Qiagen . . . of 47c in the dollar, small claim
creditors (whose claims are less than AUD20,000) of 50c in the
dollar, noteholder creditors of between 15c to 35c in the dollar
and other unsecured creditors between 0c to 20c in the dollar," the
judgment said.
"If the DOCA is not completed and the company is wound up and the
assets of the company are sold, there would be no return to
creditors (including priority creditors) other than a possible
return to secured creditors, which would be less than would be
received pursuant to the DOCA."
The Australian adds that Federal Court Justice Kylie Downes agreed
to the abridged notice for the meeting, which will now allow it to
go ahead on April 21.
The judgment said Ellume has 965 creditors.
Joanne Dunn and John Park of FTI Consulting were appointed as
administrators of the company on Aug. 31, 2022.
JMA HARDWARE: Second Creditors' Meeting Set for May 3
-----------------------------------------------------
A second meeting of creditors in the proceedings of JMA Hardware
Pty Ltd has been set for May 3, 2023 at 10:30 a.m. via telephone
conference.
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 May 2, 2023 at 5:00 p.m.
Lee Crosthwaite of Worrells was appointed as administrator of the
company on March 16, 2023.
LISEO ENTERPRISES: Second Creditors' Meeting Set for May 2
----------------------------------------------------------
A second meeting of creditors in the proceedings of Liseo
Enterprises Pty Ltd has been set for May 2, 2023 at 2:30 p.m. at
the offices of Worrells Solvency & Forensic Accountants at Level
15, 300 Queens Street in Brisbane or virtually on Microsoft Teams.
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 28, 2023 at 5:00 p.m.
Nikhil Khatri of Worrells was appointed as administrator of the
company on March 15, 2023.
LOVE YOUR WORLD: Second Creditors' Meeting Set for April 28
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Love Your World
has been set for April 28, 2023 at 10:30 a.m. at Suite 31011, 9
Lawson Street in Southport.
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 27, 2023 at 4:00 p.m.
Michael Caspaney of Menzies Advisory was appointed as administrator
of the company on March 14, 2023.
REFOCUS FINANCIAL: Director Sentenced to Six Years Imprisonment
---------------------------------------------------------------
Former Sunshine Coast financial adviser Brett Gordon has appeared
before the Maroochydore District Court and entered pleas of guilty
to nine counts of fraud totalling AUD652,500. Mr. Gordon was
sentenced to six years imprisonment with eligibility for parole
after one and a half years.
Mr. Gordon was a director and financial adviser of his financial
planning business, Refocus Financial Group Pty Ltd. Between 2015
and 2018, Mr. Gordon withdrew funds without authorisation from his
clients' SMSF accounts and from Diverse Capital Management Pty Ltd,
which held funds deposited by his SMSF clients for property
development purposes. He dishonestly used those funds for personal
debts and expenses, as well as for Refocus' business expenses.
In sentencing Mr. Gordon, Judge Barlow KC described his conduct as
'deliberate, fraudulent and unforgivable given his position of
trust' and noted that his conduct involved people's livelihood and
occurred over a number of years. Judge Barlow KC also observed that
Mr Gordon did not attempt to repay his victims.
Judge Barlow KC took into consideration Mr. Gordon's guilty pleas,
the loss of his career in financial services and his previous
cooperation with ASIC.
The matter was prosecuted by the Commonwealth Director of Public
Prosecutions following a referral from ASIC.
On July 11, 2018, the Supreme Court of Queensland made final orders
by consent, on the application of ASIC, winding up entities
operated by Mr. Gordon, Refocus and Consultia Super Pty Ltd and
restraining Mr. Gordon from carrying on a financial services
business without holding an Australian Financial Services (AFS)
licence or being an authorised representative of an AFS licensee.
TILLER RIDES: Second Creditors' Meeting Set for May 2
-----------------------------------------------------
A second meeting of creditors in the proceedings of Tiller Rides
Pty Ltd and Shapeshift Design Technologies Pty Ltd has been set for
May 2, 2023 at 10:00 a.m. and 11:30 a.m. respectively, via virtual
meeting.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 1, 2023 at 2:00 p.m.
Melanie Samantha Grohovaz of EMJ Consulting Pty Ltd was appointed
as administrator of the company on March 21, 2023.
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C H I N A
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CHINA EVERGRANDE: Unit Sells Property Assets for USD0.30
--------------------------------------------------------
Yicai Global reports that the electric car arm under embattled
property developer China Evergrande Group is disposing of some of
its real estate assets, which still require significant investment,
for the nominal sum of just CNY2 (USD0.30) in order to concentrate
on its vehicle business.
In view of the huge sums required by the new energy vehicle sector,
China Evergrande NEV Group has decided that committing further
resources to real estate projects would not be in line with its
overall strategy to de-leverage and may pose limitations to the
development of its NEV business, China Evergrande and Evergrande
NEV said April 24, Yicai relays.
By selling the property, the NEV maker is hoping to improve the
valuation of the Shenzhen-based company so as to attract investors
and help raise funds, the report relates. Evergrande NEV, which has
only delivered 900 of its Hengchi 5 autos to date, halted
production at its Tianjin plant on March 22 due to insufficient
funds. It plans to resume production next month.
According to Yicai, Evergrande NEV, which used to be called
Evergrande Health Industry Group and was focused on the healthcare
industry before the focus was shifted in 2020 to the electric car
sector, said it needed CNY29 billion (USD4.1 billion) in order to
stay in production. The carmaker expects to run up debts of as much
as CNY7 billion (USD1 billion) by 2026 as it rolls out new models.
About China Evergrande
China Evergrande Group is an integrated residential property
developer. The Company, through its subsidiaries, operates in
property development, investment, management, finance, internet,
health, culture, and tourism markets.
Evergrande had CNY1.97 trillion (US$311 billion) of liabilities at
the end of June 2021. Once China's biggest developer by sales,
Evergrande fell into distress as cash dried up and the group
overstretched itself on borrowings and ventures into car
manufacturing.
Evergrande hired outside financial advisers Houlihan Lokey and
Admiralty Harbour Capital in September 2021 to engage with
creditors soon after it ran into a liquidity squeeze. It has since
worked with more advisers in the past two months by turning to
China International Capital Corp, BOCI Asia and Zhong Lun Law Firm
on its debt workout plan.
As reported in the Troubled Company Reporter-Asia Pacific in
October 2022, Moody's Investors Service has withdrawn China
Evergrande Group's (Evergrande) corporate family rating and senior
unsecured ratings, the CFRs of Hengda Real Estate Group Company
Limited and Tianji Holding Limited, and Scenery Journey Limited's
backed senior unsecured ratings.
VNET GROUP: Fitch Affirms & Then Withdraws 'B-' LongTerm IDRs
-------------------------------------------------------------
Fitch Ratings has affirmed China-based carrier-neutral data-centre
operator VNET Group, Inc.'s Long-Term Foreign- and Local-Currency
Issuer Default Ratings (IDRs) at 'B-' with a Stable Outlook. At the
same time, Fitch has withdrawn the ratings.
VNET's ratings reflect its view that its liquidity and access to
capital are weak and it does not have the funds to meet its
potential obligations over the next 12 months. VNET is exploring
multiple capital- raising options, but Fitch has limited visibility
on when it will have sufficient funds. Liquidity is insufficient to
meet a USD600 million put payment that may be required in February
2024 on a convertible bond. The company had CNY2.7 billion in
readily available cash at end-2022, which is insufficient to fund
the total short-term debt of CNY484 million, USD68 million in
convertible notes that are puttable in 1H23, USD600 million in
convertible notes puttable in February 2024 and Fitch-forecast
negative free cash flow of more than CNY2 billion.
Fitch has chosen to withdraw the ratings of VNET for commercial
reasons.
KEY RATING DRIVERS
Liquidity Shortfall: Fitch believes VNET's access to capital
markets remains weak given the adverse conditions in the
cross-border Chinese high-yield bond market. Fitch thinks its
ability to raise funds through equity or hybrid instrument issuance
is uncertain as the share price has declined in the past two years.
However, some investors may see benefits from China's economy
opening up after Covid-19-related lockdowns and rising economic
activity and consumer spending. Fitch believes bank access is
intact, given VNET's ability to get secured funding on new
wholesale projects and established relationships with local banks.
High Leverage: Fitch expects 2023-2024 EBITDA leverage to remain
elevated at around 7.3x-7.4x (2022 estimate: 7.5x), as EBITDA
growth is unlikely to drive deleveraging in the medium term. Fitch
believes VNET is unlikely to have sufficient liquidity to fund
cabinet delivery to meet potentially higher customer demand
following the Chinese economy's re-opening, at least in 2023. The
company only provided guidance for 8,000-9,000 cabinet deliveries
in 2023, much lower than the earlier guidance of around 25,000.
VNET announced that it has established joint ventures with a
Chinese state-owned enterprise and a sovereign wealth fund to
develop and acquire data centres and cabinets. It expects equity
injections from the joint-venture partners to partially fund growth
capex. Fitch has not factored in the new equity in its forecasts
due to the uncertainty over the timing and amount.
Wholesale Expansion: VNET's business risk profile will improve
gradually, as the proportion of wholesale contracts - which have
longer tenors of eight to 10 years compared with retail contracts -
increases. Fitch expects the revenue contribution from the
wholesale segment to reach 15%-25% in 2023-2024 (2022 estimate:
mid-teens), led by higher cabinet orders from Alibaba Group Holding
Limited (A+/Stable) and a larger share of new cabinets delivered to
wholesale customers, at around 60%.
This should improve revenue and cash flow visibility. The company
had 281 megawatts of in-service capacity for the wholesale business
at end-2022.
Margin Expansion: Fitch expects the Fitch-defined EBITDA margin to
expand to 22%-25% in 2023-2024 (2022 estimate: 20%), driven by
strict cost control and operating leverage, given the high
fixed-cost nature of the data-centre business. Fitch calculates
Fitch-defined EBITDA after deducting allowance for doubtful debt,
other operating income, depreciation on right-of-use assets and
lease interest expense from reported EBITDA, in line with its
Corporate Rating Criteria.
Premier Data Centres: Fitch expects revenue and cash flow
visibility to be supported by VNET's high-quality data-centre
portfolio. Around 87% of cabinets it built are in top-tier cities,
where demand outpaces supply because of strict local-government
limits on land use for data-centre construction and quotas on power
use for daily data-centre operations. The utilisation rate of
established data centres in these cities could reach 80%, compared
with 30%-40% in western China.
Variable Interest Equity Structure: The ratings reflect its
expectation that VNET's relationships with the Chinese government
and regulatory authorities will stay healthy. Any change could
affect the company's credit strength, as it does not have equity
control over its onshore operating companies. These include Beijing
Yiyun Network Technology Co., Ltd. and other consolidated
affiliated entities with which VNET has only contractual
relationships due to government restrictions on foreign ownership
in China's value-added telecom businesses.
DERIVATION SUMMARY
VNET has a significantly weaker business risk profile than leading
global wholesale data-centre operator Digital Realty Trust, Inc.
(DLR, BBB/Stable) and retail co-location data-centre operator
Equinix, Inc. (EQIX, BBB+/Stable). DLR and EQIX have strong
competitive positions through their global networks of data
centres, while VNET is China-centric. The credit profiles of the
two peers are also supported by their granular tenant bases across
multiple industries. VNET's Fitch-forecast 2023-2024 EBITDA
leverage of 7.3x-7.4x is higher than DLR's 6.0x-6.2x and EQIX's
4.0x-4.1x.
VNET has a weaker business risk profile than China-based leading
hyperscale data-centre operator Chindata Group Holdings Limited
(BBB-/Stable). Chindata has better cash flow visibility than VNET,
given its long average contract tenor of over nine years, while
VNET generates most of its core data-centre revenue from retail
contracts with tenors of one-to-three years. Chindata's customers
also pay most of its revenue over the contract life should they
choose to terminate contracts early.
Furthermore, Chindata owns around 94% of its high-specification
data centres - measured by capacity - while VNET mainly relies on
leases to develop its data centres. Fitch believes asset ownership
provides good access to secured capital.
VNET has a weaker financial risk profile than Chindata, which has
Fitch-forecast 2023-2024 EBITDA leverage of 5.4x-5.6x. Fitch
assesses Chindata using its APAC property/REIT navigator, as the
company's business model is similar to that of a REIT or
property-management company. This is due to its strong ownership of
properties that generate recurring revenue. Fitch assesses VNET on
the generic navigator, as it leases rather than owns the majority
of its data centres.
VNET has a better business risk profile than TierPoint, LLC
(B/Stable). TierPoint provides both retail collocation and managed
services, but derives a higher portion of revenue from managed
services. VNET's collocation and interconnection services have
longer contract tenors and more recurring revenue and cash flow
than managed services. This is counterbalanced by VNET's
refinancing risk and weaker financial risk profile. TierPoint has
access to senior secured revolving credit facilities and its
earliest debt maturity is in April 2025. VNET's Fitch-forecast
2023-2024 EBITDA leverage of 7.3x-7.4x is also higher than
TierPoint's 4.7x-5.0x.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
- Small price increase of around 0.5% in monthly recurring revenue
(MRR) per cabinet in 2023 before a small decline in MRR per cabinet
from 2024 due to the lower price charged on wholesale customers
than retail customers, as the company does not provide value-added
services to wholesale customers;
- Annual net addition of self-built cabinets of 9,000 in 2022 and
15,000 in 2023 (2022: 8,438);
- Average monthly cabinet utilisation ratio of 54%-55% in 2023 and
57%-58% in 2024, driven by the addition of a large number of
cabinets (2022 estimate: 55%);
- Fitch-defined EBITDA margin of 22%-25% in 2023-2024 (2022
estimate: 20%), equivalent to company-defined adjusted EBITDA
margin of 27%-30% in 2023-2024 (2022: 27%);
- Capex of around CNY3.3 billion in 2023 and around CNY5 billion in
2024 (2022 estimate: CNY3 billion);
- No cash dividends during 2023-2024 (2022: nil);
- USD68 million in private convertible notes due 2025, USD600
million in convertible notes due 2026 and USD250 million in
convertible notes due 2027 treated as 100% debt.
RATING SENSITIVITIES
Rating sensitivities are no longer relevant given the rating
withdrawal.
LIQUIDITY AND DEBT STRUCTURE
Tight Liquidity: Fitch believes current committed liquidity is
insufficient to fund its estimate of cash requirements over the
next 12 months, which comprise short-term debt of around CNY484
million, Fitch-forecast negative free cash flow of more than CNY2
billion, the potential repayment of USD68 million (around CNY461
million) in convertible notes in 1H23 and USD600 million in
February 2024. Readily available cash at end-2022 was CNY2,661
million with some uncommitted, undrawn facilities.
Fitch believes the company should still have bank access, despite
weakened capital-market access, given its long and established
relationships with local banks. VNET has been exploring several
options to fund the liquidity shortfall since last year.
VNET is exposed to a liquidity event risk if shareholder
Tus-Holdings Co., Ltd. or the chairman and his parties, acting in
concert, increase the holdings of their class A shares to over 25%,
another shareholder increases its voting rights to over 50% or
holdings of the class A shares to over 50%, or the company's equity
is delisted from US stock exchanges without a listing on another
stock exchange, in which case the USD600 million of convertible
notes will need to be repaid immediately.
The company is evaluating two competing privatisation bids,
including one from the chairman and founder. Privatisation will
trigger immediate repayment of the USD600 million notes. However,
Fitch has limited information on the proposals from the two bidders
and their financial resources to repay the notes. VNET said there
is no committed timeline for the completion of the potential
privatisation.
ISSUER PROFILE
VNET is one of the largest carrier-neutral and cloud-neutral
data-centre service operators in China with 27 years of experience.
It is also engaged in partnered cloud services with Microsoft
Corporation and virtual private network businesses.
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.
Following the withdrawal of ratings for VNET, Fitch will no longer
be providing the associated ESG Relevance Scores.
Entity/Debt Rating Prior
----------- ------ -----
VNET Group, Inc. LT IDR B- Affirmed B-
LT IDR WD Withdrawn B-
LC LT IDR B- Affirmed B-
LC LT IDR WD Withdrawn B-
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I N D I A
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AGARWAL GENERAL: CARE Keeps B Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Agarwal
General Engineering Works Private Limited (AGEWPL) continues to
remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 1.50 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 6.00 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 March 25, 2022,
placed the rating(s) of AGEWPL under the 'issuer non-cooperating'
category as AGEWPL 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. AGEWPL continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 8, 2023, February 18, 2023, February 28, 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).
Jaipur (Rajasthan) based, AGEWPL was incorporated in 1979 by Mr.
Nand Lal Bansal along with his family members as a private limited
company. AGEWPL is engaged in the business of manufacturing of All
Aluminum Conductors (AAC) and Aluminum Conductor Steel Reinforced
(ACSR). The manufacturing unit of the company is located in
Vishwakarma Industrial Area, Jaipur with combined total installed
capacity of 1062 Metric Tonnes Per Annum (MTPA) as on March 31,
2020. The company participates in the tenders for supply of
conductors and has longstanding association with Madhya Pradesh
State Electricity Board (MPSEB), Power Grid Corporation of India
Limited (PGCIL), Punjab State Electricity Board (PSEB) and
Rajasthan State Electricity Board (RSEB).
AKAL PIPE: CARE Keeps C Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Akal Pipe
Industries (API) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.86 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 0.32 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 April 7, 2022,
placed the rating(s) of API under the 'issuer non-cooperating'
category as API 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. API continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 21, 2023, March 3, 2023, March 13, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Akal Pipe Industries (API) was established in 2010 but started its
commercial operations in April 01, 2013 and is currently being
managed by Mr. Yadwinder Singh, Mr. Gurnam Singh, Mr. Harpreet
Singh, Mr. Harbant Singh and Mr. Nazam Singh, as its partners,
sharing the profit and losses in the ratio of 13%, 14%, 13%, 51%
and 9% respectively. API is engaged in the manufacturing of HDPE
(High density Polyethlylene) lined RCC (Reinforced cement concrete)
pipes at its manufacturing unit in Nalagrah, Solan, Himachal
Pradesh with varied installed capacity for different size of pipes.
The firm's products find their application mainly in the irrigation
and sewage sector.
ANNAPURNA INDUSTRIES: CARE Keeps B- Debt Rating in Not Cooperating
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Annapurna
Industries (AI) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 12.00 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 April 27, 2022,
placed the rating(s) of AI under the 'issuer non-cooperating'
category as AI had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. AI continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 13, 2023, March 23, 2023, April 2, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Annapurna Industries (AI) was established as a partnership firm in
2006 by Shri Ashish Khandelwal, Shri Pratik Khandelwal, Smt Neha
Khandelwal, Shri Navin Khandelwal and Smt. Sheetal Khandelwal for
setting up a rice milling and processing unit. The firm has been
engaged in rice milling activities at its plant located at
Rajnandgaon, Chhattisgarh with aggregate installed capacity of
46080 MTPA. The firm has started commercial operations from
February, 2006 onwards. Further, AI undertakes job work for Govt.
of Chhattisgarh whereby the entity processes rice against paddy
supplied by the government.
CARNATION CREATIONS: CARE Keeps B- Debt Rating in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Carnation
Creations Private Limited (CCPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.50 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 6.00 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 3,
2022, placed the rating(s) of CCPL under the 'issuer
non-cooperating' category as CCPL 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. CCPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated December 20, 2022, December 30, 2022, 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).
Carnation Creations Private Limited (CCPL) was incorporated on
August 8, 2017 as a Private Limited Company by Mr. Akhilesh Anand
and Mr. P.V. Vaidyanathan in Coimbatore, Tamil Nadu. The commercial
operation of company was started from November 2017. CCPL is
engaged in manufacturing and exporting of garments. The company has
four factories to sew the knitted fabric into garments. The factory
has an installed capacity to manufacture 5,00,000 units per month
as on March 27, 2019. The company exports to companies located in
Hong Kong and UAE. The company has procured several international
licenses and certifications from renowned organisations, like
Supima Cotton License, USA, Gold Certificate from WRAP (Worldwide
Responsible Accredited Production), CCPL is authorized to produce
garments for the Champion Brand, USA, CCPL is a member of the CII
(Confederation of Indian Industry), Cotton USA Certification and
Fastest Growing Company of India from International Achiever's
Conference held on December 22, 2018.
DIACTINIC DEVELOPERS: CARE Keeps B Debt Rating in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Diactinic
Developers Private Limited (DDPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.57 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 0.68 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 March 2, 2022,
placed the rating(s) of DDPL under the 'issuer non-cooperating'
category as DDPL 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. DDPL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 12, 2023, April 13, 2023 and April 14, 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).
Diactinic Developers Private Limited (DDPL) was incorporated in
March 14, 2017, with its office located at Kasba in West Bengal. It
has started operation since April, 2019 and the entity has been
engaged in civil construction business in the segment like roads,
bridge and building. DDPL secures work contracts through tender and
executes orders mainly for various departments of West Bengal
Government. The major clients of the company include reputed names
like Public Works Department (PWD) West Bengal, Mackintosh Burn
Limited (MBL) and contracts for South 24 Parganas (West Bengal).
Mr. Debasis Ghosh has more than three decades of experience in
civil construction industry. They look after the day-to-day
operations of the entity along with other technical and
non-technical professionals who are having long experience in this
industry.
DOSTI REALTY: CARE Lowers Rating on INR150cr LT Loan to D
---------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Dosti Realty Limited (DRL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 150.00 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 April 14, 2022,
placed the rating(s) of DRL under the 'issuer non-cooperating'
category as DRL 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. DRL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 28, 2023, March 10, 2023, March 20, 2023, April 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).
The ratings assigned to the bank facilities of DRL have been
revised on account of non-availability of requisite information.
The revision also factored in the instances of delays in debt
servicing of loans availed from various Banks as well as NBFCs
recognized from Audit Report of FY22 available from registrar of
the companies.
Analytical approach: Consolidated. CARE has considered consolidated
financials of DRL while arriving at the ratings as the company
executes its projects through its various group companies.
Outlook: Not Applicable
Dosti Realty Limited (DRL) is a Mumbai based real estate
Development and is part of the Dosti Group. The group is involved
in Mumbai and Thane real estate space for around four decades. The
company is promoted by Mr. Mr. Kishan Goradia (Chairman and
founding member) and Mr. Deepak Goradia (Vice Chairman and Managing
Director). The group has developed around 8 million square feet
(msf), primarily residential properties in and around Mumbai. The
group is currently executing 8 projects with total saleable area of
around 7.05 msf spread across Mumbai, Thane, and Pune.
ELEMENTION HEALTH: Voluntary Liquidation Process Case Summary
-------------------------------------------------------------
Debtor: Elementation Health & Sports Private Limited
#23, Anand Lok,
New Delhi - 110029
Liquidation Commencement Date: October 3, 2022
Court: National Company Law Tribunal
Liquidator: Vishawajeet Gupta
#51, Adarsh Enclave, Dhakoli,
Near Zirakpur,
Distt. Mohali (Punjab) 140603
Email: vishawjeetgupta@gmail.com
Tel No: +91-98152 84474 (M)
Last date for
submission of claims: November 2, 2022
G V AUDIO: CARE Keeps D Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of G V Audio
Visionn Private Limited (GVAVPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated February 2,
2022, placed the rating(s) of GVAVPL under the 'issuer
non-cooperating' category as GVAVPL 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. GVAVPL 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).
Erode (Tamilnadu) based G V Audio Visionn Private Limited was
established on November 05th 2008 by Mr. KKM Khatir (Director) and
other promoter directors. The company retail outlet for consumer
durable products such as Television, AC, Fridge, Washing Machine,
etc pertaining to various brands. The promoter started the business
in the name of partnership firm M/s G V Audio Vision, later on, the
constitution of entity was changed to Private Limited during 2008.
The company is head quartered at Erode with branch showrooms
located at Coimbatore, Tiruppur, Gobi, Namakkal and Tiruchengode in
Tamilnadu. Mr. KKM Khatir, Director of the company, has experience
in the same line of business from past 3 decades.
GAUTAM CEMENT: CARE Lowers Rating on INR8cr LT Loan to B
--------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Gautam Cement Works (GCW), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.00 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B+; Stable
Short Term Bank 8.00 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 April 11, 2022,
placed the rating(s) of GCW under the 'issuer non-cooperating'
category as GCW 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. GCW continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 25, 2023, March 7, 2023, March 17, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of GCW have been
revised on account of non-availability of requisite information.
Beawar (Rajasthan) based GCW was formed in 1996 as a partnership
concern by Mr. Lalit Kumar Jain and Ms. Sunita Jain and shares
profit/loss equally. GCW is engaged in the business of
manufacturing of Pre-stressed Cement Concrete (PSC) electric poles
at its existing facility. It has four plants, out of which three
located in Tamil Nadu and one in Orrisa. GCW manufactures 7.5M, 8M
and 9M poles and also manufacture poles according to designs and
specifications of the client.
HARMAN RICE: CARE Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Harman Rice
Private Limited (HRPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ 30.00 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
Rationale and Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 13,
2022, placed the rating(s) of HRPL under the 'issuer
non-cooperating' category as HRPL 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. HRPL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated April 17, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings have been revised on account of non-availability of
requisite information. The ratings also take into account the
ongoing delays in debt servicing as recognized from publicly
available information.
Incorporated in 2006, HRPL is engaged in the processing of paddy at
its manufacturing facility in Bathinda, Punjab. HRPL mainly
produces unbranded basmati rice which is sold to nearby traders and
rice shellers located primarily in Punjab and Haryana. The company
also started exporting its products to countries in the middle-east
like Dubai etc., in FY17.
HINDUSTAN PHOTO: Liquidation Process Case Summary
-------------------------------------------------
Debtor: Hindustan Photo Films Mfg Co Limited
Indu Nagar, Ootacamund, The Nilgiris,
Tamilnadu - 643 005
Liquidation Commencement Date: March 30, 2023
Court: National Company Law Tribunal Coimbatore Bench
Liquidator: CA Mahalingam Suresh Kumar
No. 27/9 , Nivedh Vikas,Pankaja Mill Road,
Puliyakulam, Coimbatore- 641045
Tel No: 73730-52341
Email: msureshkumar@icai.org
Email: hpfmcl.liq@gmail.com
Last date for
submission of claims: April 30, 2023
HOTEL DEEPALI: CARE Lowers Rating on INR7.26cr LT Loan to B
-----------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Hotel Deepali (HD), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.26 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 April 28, 2022,
placed the rating(s) of HD under the 'issuer non-cooperating'
category as HD 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.
HD continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated March 14, 2023, March 24, 2023, April 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 assigned to the bank facilities of HD have been revised
on account of non-availability of requisite information.
Sagar (Madhya Pradesh) based Hotel Deepali (HD) was formed as a
proprietorship concern in 2002 by Mrs. Saroj Singh Thakur. HD is
engaged in the hotel business and presently owns and operates a
Hotel namely Hotel Deepali at village Bamora, Jabalpur Road, Sagar
(Madhya Pradesh) which is on Sagar- Jabalpur Highway and 6 KMs away
from Sagar main Bus stand. The hotel had 66 rooms along with
marriage garden, 6 banquets hall, restaurant, game zone and other
recreation centres.
ISHER FINANCE: Voluntary Liquidation Process Case Summary
---------------------------------------------------------
Debtor: Isher Finance Limited
Shivani Market, 1st Floor,
(Building of SH.M.M Sharma),
Gandhi Nagar, Jammu, Jammu and Kashmir
Liquidation Commencement Date: October 19, 2021
Court: National Company Law Tribunal, Dhakoli Bench
Liquidator: Vishawajeet Gupta
#51, Adarsh Enclave, Dhakoli, Near Zirakpur,
Distt. Mohali (Punjab) 140603
Email: vishawjeetgupta@gmail.com
Telephone No: +91-98152 84474 (M)
Last date for
submission of claims: November 18, 2021
KRISHNA IMPEX: CARE Keeps B- Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shree
Krishna Impex (SKI) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 3.35 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Long Term/Short 1.15 CARE B-; Stable/CARE A4;
Term Bank ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 13.20 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 April 14, 2022,
placed the rating(s) of SKI under the 'issuer non-cooperating'
category as SKI 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. SKI continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 10, 2023, March 20, 2023, April 13, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Shree Krishna Impex (SKI) was established in 2003 and is engaged in
manufacturing of stainless steel utensils, nonstick ware
appliances, wood, brass, iron and aluminum utensils. The company is
promoted by Mr. Sanjeev Kumar Jain, Mr. Sandeep Kumar Jain and Mr.
Rajeev Kumar Jain. The raw materials used in manufacturing of
products are stainless steel, aluminum, brass and iron. It procures
it's raw materials from manufacturers based in Delhi & Haryana. The
suppliers of SKI are SS Metals, Sagar Metal Industries, Shroni
Industries, etc. The manufacturing facilities of the company are in
Moradabad (U.P.) The products manufactured by the company are sold
through direct buyers and agencies. The company exports its 100%
finished goods to various countries like UK, USA, Australia, China,
Korea, Hong Kong. Its customer includes Walmart, Sainsbury
Supermarkets, John Lewis PLC, TESCO, etc. SKI has a sister concern
namely Martco Exports Private Limited which is engaged in which was
established in 2016 and is engaged in a similar line of business.
M L AGROFOODS: CARE Keeps B Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of M L
Agrofoods Private Limited (MLAPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.25 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 0.02 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
CARE Ratings Ltd. had, vide its press release dated April 7, 2022,
placed the rating(s) of MLAPL under the 'issuer non-cooperating'
category as MLAPL 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. MLAPL continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 21, 2023, March 3, 2023, March 13, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Udaipur (Rajasthan) based MLAPL was incorporated in April 25, 2013
by Agrawal family. The company is engaged in processing of wheat
and products of the company includes such as suji, meda, atta, rawa
and others. The processing facility of MLAPL is located at Udaipur,
Rajasthan.
MALLIKHARJUNA AGENCIES: CARE Keeps B- Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of
Mallikharjuna Agencies (MA) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.00 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 11,
2022, placed the rating(s) of MA under the 'issuer non-cooperating'
category as MA 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. MA continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
December 28, 2022, January 17, 2023, April 14, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Incorporated in August 10 2004, Mallikharjuna Agencies (MA) was
promoted by Mr. Ashok Kumar Reddy (Managing Partner) and Mr.
Kamlesh Kumar Reddy (Partner). The firm is engaged in the wholesale
trading of wines (MGM Wine & Spirits, 5000 super premium,
Troubadour megma etc.,). the firm purchases the products from
companies like Privilege Industries Limited and etc and sells the
same to dealers located in Puducherry.
PARAS GOTTAM: CARE Keeps B- Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Paras
Gottam and Company (PGC) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/Short 10.00 CARE B-; Stable/CARE A4;
Term Bank ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 11, 2022,
placed the rating(s) of PGC under the 'issuer non-cooperating'
category as PGC 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. PGC continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 25, 2023, March 7, 2023, March 17, 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).
Jaipur (Rajasthan) based PGC was established in 1969 as a
proprietorship concern by Mr. Paras Mal Jain. PGC is engaged in the
business of processing of precious stones which includes cutting
and finishing. The firm deals mainly in Emerald stones and also
does processing as per requirement for other stones like Ruby,
Sapphire, Diamond and etc. It procures rough stones mainly from
Belgium, Zambia and Hong Kong and sells its product mainly in
exports market like Belgium, New York, Hong Kong and Japan etc.
PATHY ASSOCIATES: CARE Keeps B+ Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Sri Pathy
Associates Private Limited (SPAPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/Short 50.00 CARE B+; Stable/CARE A4;
Term Bank ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 25.00 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 2,
2022, placed the rating(s) of SPAPL under the 'issuer
non-cooperating' category as SPAPL 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. SPAPL 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).
Sri Pathy Associates Private Limited (SPAPL) was established as a
partnership firm in 1989 under the name of 'Sri Pathy Associates'
to undertake civil engineering contracts. The firm was promoted by
two partners 'Mr. S Sekar' and 'Mr. S Srinivasamoorthy'. Effective
from June 17, 2019 constitution was changed from partnership to
private limited and the name was changed to 'Sri Pathy Associates
Private Limited' (SPAPL). SPAPL primarily executes projects for
state and central government agencies like Tamilnadu Housing Board
(TNHB), Tamilnadu Public Works Department (PWD), Water Resources
Department (WRD), Fisheries department, Tamilnadu Maritime Board,
etc. The day to day operations are managed by both the promoters
'Mr. S Sekar' and 'Mr. S Srinivasamoorthy'.
PIYUSH JEWELLERS: Voluntary Liquidation Process Case Summary
------------------------------------------------------------
Debtor: Piyush Jewellers Private Limited
Gali Baba Mandir Wali, Bathinda, Punjab-151001
Liquidation Commencement Date: April 11, 2022
Court: National Company Law Tribunal, Dhakoli Bench
Liquidator: Vishawajeet Gupta
#51, Adarsh Enclave, Dhakoli,
Near Zirakpur,
Distt. Mohali (Punjab) 140603
Email: vishawjeetgupta@gmail.com
Tel No: +91-98152 84474 (M)
Last date for
submission of claims: May 10, 2022
PREET LAND: CARE Keeps D Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Preet Land
Promoters & Developers Private Limited (PLPDPL) continues to remain
in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated March 17, 2022,
placed the rating(s) of PLPDPL under the 'issuer non-cooperating'
category as PLPDPL 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. PLPDPL 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).
Preet Land Promoters and Developers Private Limited (PLPDPL) was
incorporated as a private limited company in November 2005 and is
currently being managed by Mr. Raghubir Singh Dhiman, Mr. Charan
Singh Saini and Mr. Kanwal Jit Singh collectively. PLPDPL is
engaged in real estate business and is currently developing its
first real estate project named "Preet City" at Mohali (Punjab) on
a total area of 100 acres. PLP commenced land acquisition for the
project in 2006-07 (refers to financial year, April 1 to March 31).
RADISSION RESOURCES: Liquidation Process Case Summary
-----------------------------------------------------
Debtor: Radission Resources Private Limited
F-1, Asha Apartment Kalpanapuri,
Adityapur, Jamshedpur,
Seraikela, JHARKHAND - 831013
Liquidation Commencement Date: March 23, 2022
Court: National Company Law Tribunal, Kolkata Bench
Liquidator: Pratap Mukherjee
27A, Bhattacharjee Para Road, Paschim Barisha,
P.O. Thakurpukur, Kolkata-700063, West Bengal
Email : pratapmukherjee62@gmail.com
Mobile No: l # 9674795648 / 9433169214
Email: radissionresources.ibc@gmail.com
Last date for
submission of claims: April 22, 2023
RAO BHARAT: CARE Keeps B- Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Rao Bharat
Singh Education Society (RBSES) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 14.70 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 25, 2022,
placed the rating(s) of RBSES under the 'issuer non-cooperating'
category as RBSES 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. RBSES continues to
be noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 8, 2023, February 18, 2023, February 28, 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).
Rao Bharat Singh Education Society (RBSES) was registered as an
educational society in 2015 under Societies Registration Act, 1860
with an objective to provide education services by establishing and
operating an educational institution and started its commercial
operations in April, 2017. The society operates a school under the
name of RBSES located in Gurgaon, Haryana was established for
providing primary and secondary education from Nursery to standard
XII. However, currently they have students up to XIth standard
only. The day-to-day management of the society is carried by Mr.
Dharamvir (Managing Director) and Mr. Ashish Kumar (Vice President)
and well supported by other society members. The society has
employed experienced teaching and administrative staff to run the
courses in efficient manner. The campus of the society is well
equipped with modern classrooms, auditorium, library, computer
centres, and resource Centre etc.
RATNAWALI DAIRY: CARE Keeps B- Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Ratnawali
Dairy Products LLP (RDPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.59 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 11, 2022,
placed the rating(s) of RDPL under the 'issuer non-cooperating'
category as RDPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. RDPL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
January 25, 2023, February 4, 2023, February 14, 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).
Jaipur-based (Rajasthan), Ratnawali Dairy Products LLP (RDPL) was
formed in July, 2017 as a Limited Liability Partnership. The firm
has undertaken a project for setting up a plant for manufacturing
and processing of dairy products with an installed capacity of 1
lakh litre per day and a cold storage with capacity of 50,000 litre
per day. RDPL commenced its commercial operations from September
12, 2018 and currently dealing in sale of Milk, Ghee and buttermilk
under the brand name of "DHENUSAR” in Rajasthan, Delhi,
Maharasthra.
REDHU FARMS: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Redhu Farms Private Limited
AssandhiRoad, Village & PO Alewa,
Jind-126102, Haryana
Insolvency Commencement Date: March 30, 2023
Estimated date of closure of
insolvency resolution process: September 26, 2023
Court: National Company Law Tribunal, Chandigarh Bench
Insolvency
Professional: Prashant Gupta
House No. 104, Sector-25
Panchkula 134116, Haryana
Email: pgupta.rp@gmail.com
Plot No. D-190, 3rd Floor, Sector-74,
Phase-8B, Mohali-160071
Email: cirpredhufarms@gmail.com
Last date for
submission of claims: April 13, 2023
SAECO STRIPS: CARE Keeps B+ Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Saeco Strips Private Limited (SSPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.50 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE BB-; Stable
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 1, 2022,
placed the rating(s) of SSPL under the 'issuer non-cooperating'
category as SSPL 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. SSPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 15, 2023, February 25, 2023, March 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).
The ratings assigned to bank facilities of SSPL have been revised
on account of non-availability of requisite information. The
ratings also consider declining profitability as well as a leverage
capital structure as result of increase overall debt vis-à-vis low
networth based and weak debt coverage in FY22 compared to FY21.
Saeco Strips Private Limited (SSPL) was incorporated in 1995 and
commenced its business operations from May 29, 2013. The company is
promoted by Mr. Davinder Singh, Mr. Kartar Singh and Mr. Sanraj
Paul Singh. The company is engaged in the manufacturing of steel
ingots and rounds of different sizes at its manufacturing facility
located at Ludhiana, Punjab.From May15, the company has also
started manufacturing agricultural implements including rotavator,
wheat thrashers, straw reaper and multi crop thrashers. The
products manufactured by the company are used in the fasteners
industry, automobile industry, agriculture industry and cycle and
auto parts industry. Till FY15, SSPL derived majority of its income
from its group concernSaeco Steel Rolling Mills (SSRM). SSRM was a
partnership firm engaged in manufacturing of steel coils and steel
rounds since 1973. The firm's manufacturing activities, however,
ceased in Jan-16, with its rolling mill activity being merged with
SSP from March 2016. The shifting of rolling mill facilities to SSP
has led to forward integration of operations of SSP.
SAI FERTILITY: CARE Keeps B- Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sai
Fertility Centre and Hospital (SFCH) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 14.00 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 10,
2022, placed the rating(s) of SFCH under the 'issuer
non-cooperating' category as SFCH 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. SFCH
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated December 27, 2022, January 16, 2023, April 14,
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).
Sai Fertility Centre and Hospital (SFCH) were incorporated in March
2017 as a partnership firm and started it operations from June
2018. SFCH has been promoted by Dr. M. C. Arumugum, Dr. A. M.
Indira and Ms. A. Kiruthika. The firm operates a hospital providing
quality services and patient care to the people in the vicinity of
Kanchipuram, Tamilnadu. The project site was being run in the name
and style of "Nambi Hospital" which was offered for sale by "as is
where is" condition. SFCH has been established with the main
objective of providing fertility treatment. Also, the hospital will
offer various specialized services like General diagnosis and
consultation, inpatient services, surgical services and
post-surgical care, dermatology, orthopedics, neurology, urology,
diabetology, cardiology, general surgery, physiotherapy few others
for its patients and visitors. The hospital has 45 beds and 11
rooms which consist of 2 suit rooms, 4 deluxe rooms and 5 Ac/Non-Ac
rooms Also hospital has 4 wards while the average occupancy rate
for in-patient department has remained 20% during 3MFY19.
SANGAM STEELS: CARE Keeps B- Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sangam
Steels (SS) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.00 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 March 28, 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
February 11, 2023, February 21, 2023, March 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).
Sangam Steels (SS) was incorporated in 1983 by Mr Sandeep Gupta as
a proprietorship firm. The firm is an authorized dealer of JSW
Steel Limited, since 1999, and is engaged in the distribution of
iron and steel products (HR Sheets, CR sheets, rounds, etc), for
the firm. The firm is also engaged in the distribution of steel
products like HR coils, CR coil, wires rods, etc. for Steel
Authority of India Limited (SAIL). These products, primarily sold
in the Punjab and nearby regions of Chandigarh, Himachal Pradesh
and Delhi, find application in bicycle parts, automobiles
components, etc.
SGS MARKETING: CARE Lowers Rating on INR7cr LT Loan to B+
---------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
SGS Marketing (SM), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.00 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE BB-; Stable
Long Term/Short 3.00 CARE B-; Stable/CARE A4;
Term Bank ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE BB-; Stable/CARE A4
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 1, 2022,
placed the rating(s) of SM under the 'issuer non-cooperating'
category as SM 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. SM continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 15, 2023, February 25, 2023, March 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).
The ratings assigned to the bank facilities of SM have been revised
on account of non-availability of requisite information.
SGS Marketing (SM) was established in 2007 as a partnership firm by
Mr. Nitin Jain and Mr. Sushil Kumar Chhabara. The firm is based out
of Guwahati, Assam. Currently, the firm is being managed by four
brothers who are also the partners of the firm, Mr. Nitin Jain, Mr.
Ankit Jain, Mr. Nikhil Kumar Jain and Mr. Sumit Jain. From
inception, the firm has been engaged into distributorship business
of various FMCG products and mobile handset and accessories.
Earlier, the firm had sole distributorship agreement with "Gionee"
mobile handset and accessories for entire North-East India but
currently the firm has sole distributorship agreement with "Oppo"
to sell their "Realme" brand of handsets and accessories for entire
North-East India. This apart, the firm is enjoying the
distributorship of FMCG products like 3M, Anik Ghee, Cadbury
chocolates, Marico products for Guwahati, Assam. The firm has 10
rented warehouses which are located in Guwahati. The day-to-day
affairs of the firm are looked after by Mr. Nitin Jain, the
Managing Partner, with adequate support from other partners and a
team of experienced personnel.
SHIVA GINNING: CARE Lowers Rating on INR5.83cr LT Loan to B-
------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Sree Shiva Ginning and Pressing (SSGP), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.83 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 February 9,
2022, placed the rating(s) of SSGP under the 'issuer
non-cooperating' category as SSGP 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. SSGP
continues to be noncooperative 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).
The ratings assigned to the bank facilities of SSGP have been
revised on account of on account of non-availability of requisite
information.
Sree Shiva Ginning and Pressing (SSGP) is a partnership firm formed
in June 2014; however, started commercial operations in April 2015.
The partners of the firm are Mr. K. Suguresh, Mr. S. Mallikarjuna,
Mr. S. Mahabaleswarappa, Mrs. K. Chandrakala & Mrs. P. Suma. The
partners hail from agriculture background and belong to the same
family. The firm has a cotton ginning and pressing factory in
Kurnool district of Andhra Pradesh with total installed capacity of
40,000 bales per annum. The partners of SSG have interest in other
businesses like whole sale and retail trading of ground nut, edible
oil, edible oil seeds and pulses.
SOCIETY DISTRIBUTORS: CARE Keeps B- Debt Rating in Not Cooperating
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Society
Distributors Private Limited (SDPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 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 April 15, 2022,
placed the rating(s) of SDPL under the 'issuer non-cooperating'
category as SDPL 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. SDPL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 1, 2023, March 11, 2023, March 21, 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).
Society Distributors Private Limited (SDPL) was incorporated in
December 2010 as a closely-held company promoted by Mr. S P
Agnihotri and his son Mr. Anuj Agnihotri. Mr S P Agnihotri, an
alumnus of IIT-Kanpur and IIM-Ahmedabad has more than three decades
of experience in the dealership business through a group concern,
vi z. Society Motors Limited, which was established
in 1975 as an authorized dealer of passenger vehicles of Tata
Motors Ltd. and Fiat India Automobiles Pvt. Ltd. Mr. S.P. Agnihotri
retired in FY15 and the company is now looked after by Mr. Anuj
Agnihotri and Ms. Aparna Agnihotri. Mr. Anuj Agnihotri has nearly
eight years of experience in the dealership business environment
while Ms. Aparna is an MBA with nearly 6 years of experience. SDPL
is an exclusive authorized dealer of Procter & Gamble India
Limited's (P&G) products in 19 designated districts of Uttar
Pradesh (U.P.).
SWASTIK HOUSING: CARE Keeps B- Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Swastik
Housing & Construction (SHC) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 4.45 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 2.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 13, 2022,
placed the rating(s) of SHC under the 'issuer non-cooperating'
category as SHC 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. SHC continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
February 27, 2023, March 9, 2023, March 19, 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).
Bhopal (Madhya Pradesh) based SHC was established in 2000 as a
partnership firm by Mr. Rathnesh Chourasia and Mr.Rishabh
Chourasia, which is engaged into building construction services.
SHC secures its major portion of tenders through open bidding from
Indian Oil Corporation Limited (IOCL) and Hindustan Petroleum
Corporation Limited (HPCL). The firm also gets work contract from
other government entities and private parties too. The firm is
registered as approved contractor with PWD department, Government
of Madhya Pradesh. The firm has successfully completed various
construction projects majorly in Madhya Pradesh.
VEE AAR: CARE Keeps B Debt Rating in Not Cooperating Category
-------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Vee Aar
Woodchem Private Limited (VAWPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 3.78 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 3.23 CARE A4; 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 April 19, 2022,
placed the rating(s) of VAWPL under the 'issuer non-cooperating'
category as VAWPL 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. VAWPL continues to
be noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 5, 2023, March 15, 2023, March 25, 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 Vee Aar Woodchem Private Limited (VAWL) was
incorporated in August, 2015. The company is being managed by Mr.
Vikas Gupta and Mr. OM Prakash Gupta. VAWL is engaged in trading of
timber wood from its storage facility located in Gandhidham
(Gujarat). The company imports the sawed woods like, Arauco , Kapur
and Meranti woods(backed by L/C) from Malaysia which is of fixed
size and is used in real estate and furniture business
,additionally it also import timber log from Malaysia which is cur
according to customer's need at Mundara Port and sold to
wholesalers located across Haryana, Maharashtra, Delhi and Gujarat.
VIDEOCON INDUSTRIES: SC Seeks Twinstar, RP Replies on Dhoot Plea
----------------------------------------------------------------
The Economic Times reports that the Supreme Court on April 17
sought responses from Vedanta Group company Twinstar Technologies
and the resolution professional of bankrupt Videocon Industries
(VIL) on an appeal by the latter's former Chairman, Venugopal
Dhoot, seeking a direction to the lenders to accept his
INR31,789-crore resolution plan.
ET relates that Dhoot pleaded before the court that his resolution
plan entails a "zero haircut" to lenders and also sought quashing
of a National Company Law Appellate Tribunal's order that had
approved Twinstar Technologies' INR2,962-crore bid. Lenders had in
2020 rejected Dhoot's bid and instead approved Twinstar's
resolution proposal by a 95.08% vote, the report notes.
Videocon Industries sells consumer products like color televisions,
washing machines, air conditioners, refrigerators, microwave ovens
and many other home appliances in India.
Videocon, owned by the Dhoot family, was taken to bankruptcy court
after it failed to repay INR230 crore to SBI in 2017. It was among
the first 12 companies pushed into bankruptcy after directions from
the Reserve Bank of India in 2017.
On June 6, 2018, National Company Law Tribunal (NCLT), Mumbai
bench, admitted a petition for initiating insolvency resolution
process against the company under the Insolvency and Bankruptcy
Code, 2016.
The company's total debt stood at over INR635 billion in 2019,
according to Business Standard, citing bankruptcy case-related
disclosures on the company's website.
WOODVILLE PALACE: CARE Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Woodville
Palace Hotel (WPH) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 17.18 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 19, 2022,
placed the rating(s) of WPH under the 'issuer non-cooperating'
category as WPH 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. WPH continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 5, 2023, March 15, 2023, March 25, 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).
Woodville Palace Hotel (WPH) was established in April, 1977 as a
proprietorship concern and is currently being managed by Mr. Kanwar
Uday Singh, as its proprietor. The firm is running a hotel with the
name of "Woodville Palace Hotel" on ~5 acres of land in Shimla,
Himachal Pradesh. The hotel comprises of total 27 rooms, along with
1 banquet hall, 1 bar, 1 restaurant, 1 lounge, 1 dining hall and
parking area for around 30 cars.
===============
M O N G O L I A
===============
MONGOLIAN MINING: Fitch Assigns 'B' Rating on Proposed USD Notes
----------------------------------------------------------------
Fitch Ratings has assigned coal producer Mongolian Mining
Corporation's (MMC) proposed US dollar notes a 'B' rating with an
expected Recovery Rating of 'RR4'. The proposed notes will be
issued by MMC and its wholly owned subsidiary Energy Resources LLC,
and guaranteed by most of its operating subsidiaries. The notes
will constitute senior unsecured obligations of MMC as they
represent its unsecured and unsubordinated obligations.
Net proceeds from this issuance will be used to fund a concurrent
tender offer for liability management purposes and will be leverage
neutral. Fitch expects successful issuance of the notes to
alleviate the company's medium-term funding needs for its USD350
million 2024 notes redemption.
KEY RATING DRIVERS
Issuance Improves Funding Needs: The new notes will be used to pay
the tender price of any 2024 notes tendered in a concurrent tender
and exchange offer. The tender offer has a maximum tender cap equal
to the new notes issued. A successful transaction would reduce
MMC's funding requirement for the 2024 notes, and be likely to be
credit positive as the maturity profile would improve.
Alternatively, if issuance is unsuccessful, Fitch expects the
company would have the capacity to repay most of the 2024 notes
with operating cash flow, and be able to seek financing for any
potential shortfall.
MMC's 2024 notes' outstanding balance is USD350 million at 21 March
2023. The cash balance has increased to over USD200 million, from
USD65 million at end-2022, based on Fitch's Estimate, indicating
strong cash generation in 1Q23. Fitch expects around USD300 million
EBITDA in the next 12 months.
Improving Operations: MMC's core coking-coal operation has
normalised amid stabilisation in the border situation. The average
daily throughput rose to over 900 trucks in March 2023, surpassing
the pre-Covid level, from around 120 trucks in 1Q22.
MMC ramped up processing volume to 3.1 million tonnes in 1Q23 from
0.9 million tonnes in 1H22. Fitch expects the realised average
selling prices (ASP) for washed hard coking coal to increase to
over USD160/tonne in 2023, from the 2022 average of USD147/tonne.
Financial Profile to Improve: Fitch expects the EBITDA margin to
improve to over 40%, from around 24% in 2022, with greater FCF) as
a result of higher volumes, stronger pricing assumptions, and
normalising costs. Fitch forecasts leverage to drop below 1.0x in
2023, supported by strong ASP and margin expansion due to falling
costs, from a high level of 3.5x at end-2022 on controlled border
throughput and weak ASP resulting from long delivery times.
Small Scale, Single Product: MMC is small by revenue compared with
Fitch-rated coal miners globally. Hard coking coal accounted for
over 95% of MMC's total revenue in 2021. Its latest coal reserve
statements show total marketable coal reserves of just under 400
million tonnes, or a reserve life of around 35 years. MMC's small
scale and product concentration constrain its business profile to
the 'B' rating category. MMC is looking to diversify away from
coking coal, but Fitch believes it will remain the dominant revenue
contributor in the short to medium term.
Regional Cost Advantage: MMC's cash cost including royalties is in
the second quartile of the global coking-coal cost curve, but its
cost advantage is only in the northern part of China due to the
proximity of its mines to steel mills in that area. Transportation
by land to Chinese customers cost about USD30 a tonne, on average,
in 2022, limiting MMC's cost competitiveness and putting it in the
higher quartile of the global cost curve. Delivery beyond northern
China would raise costs, leaving it with customers that are mainly
in northern China.
DERIVATION SUMMARY
MMC is much smaller in scale in terms of revenue compared with
rated coal producers such as Yankuang Energy Group Company Limited
(BB+/Stable), PT Indika Energy Tbk (BB-/Stable) and PT Golden
Energy Mines Tbk (GEMS, BB-/Stable). Yankuang Energy's revenue was
over USD17 billion in 2021 compared with MMC's USD184 million,
while Indika is over four times that of MMC and GEMS is over two
times larger. However, MMC has a similar EBITDA margin as Yankuang
Energy and a wider margin than Indika and GEM.
MMC is a single-product coal miner, similar to its peers. Its
operational profile in terms of mine life is similar to that of
GEMS, whose mine life is over 25 years. Indika's mine life is
shorter at around 16 years.
MMC's leverage and financial flexibility profile is weaker than
that of GEMS. GEMS has more stable FCF generation ability, much
lower leverage and well-distributed amortising debt. Both MMC and
Indika had choppy FCF generation in the past few years and have
concentrated debt maturity. Nevertheless, Indika has much better
interest coverage and much lower leverage.
KEY ASSUMPTIONS
Fitch's Key Assumptions within its Rating Case for the Issuer:
-- Hard coking coal ASP of USD162/tonne in 2023 and USD156/tonne
in 2024;
-- Revenue to increase to over USD800 million in 2023 and stay
above USD800 million in 2024 and 2025 as operations continue to
normalise, boosting top-line earnings;
-- EBITDA margin to improve to an average of below 40% in
2023-2025, supported by volume improvement, strong ASP and
normalised costs;
-- Capex under 10% of revenue, on average, in 2023-2025;
-- No dividend payments in 2022-2025.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
The Outlook may be revised to Stable if MMC demonstrates an ability
to accumulate sufficient cash flow to repay the 2024 senior notes
without the need to obtain a large amount of funding.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
Poor cash accumulation, indicating a large shortfall for the
repayment of the 2024 notes.
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity: MMC had USD65 million of cash on hand and no
short-term debt at end-2022. It also has unused committed bank
facilities totalling USD39 million. However, there is potentially a
shortfall for the repayment of notes due in April 2024 (face value
of USD376 million at end-2022), as Fitch expects the company to
generate over USD200 million of FCF by end-1Q24.
ISSUER PROFILE
MMC is the largest producer and exporter of high-quality hard
coking coal in Mongolia. It owns and operates the Ukhaa Khudag and
the Baruun Naran open-pit coking coal mines in South Gobi
province.
In 2022, MMC processed 6.6 million tonnes of run-of-mine coal,
which yielded a total product of around 3 million tonnes of washed
coking coal as a primary product and 1.2 million tonnes of washed
thermal coal as a secondary product.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
Entity/Debt Rating Recovery
----------- ------ --------
Mongolian Mining
Corporation
senior unsecured LT B New Rating RR4
Energy Resources LLC
senior unsecured LT B New Rating RR4
MONGOLIAN MINING: Moody's Gives First Time 'B3' Corp. Family Rating
-------------------------------------------------------------------
Moody's Investors Service has assigned a first-time B3 corporate
family rating to Mongolian Mining Corporation (MMC). The outlook is
stable.
At the same time, Moody's has also assigned a B3 senior unsecured
rating to the proposed senior notes issued by MMC and its
subsidiary, Energy Resources LLC, and guaranteed by other key
subsidiaries.
The net proceeds will be used to refinance MMC's senior notes due
in April 2024.
RATINGS RATIONALE
"MMC's B3 CFR reflects the company's integrated coking coal
operations with long reserves, competitive cost position, improving
cash flows and low leverage. These strengths are counterbalanced by
its small scale with high concentration, emerging market risks and
exposure to carbon transition risks," says Shawn Xiong, a Moody's
Vice President and Senior Analyst.
"The rating also factors in Moody's expectation that MMC's planned
debt issuance, which has just been announced, will proceed in a
timely manner, therefore the company will have a sufficient
liquidity buffer to address its cash needs over the next 12-18
months," adds Xiong.
At the same time, MMC's rating reflects the company's exposure to
very highly negative environmental risks and highly negative social
risks related to its coking coal mining operations. It also faces
highly negative governance risk, reflecting its historically
aggressive financial policy that has led to elevated leverage and
volatile credit metrics. These risks are tempered by the company's
sound track record in environmental compliance, safe and socially
responsible operations, and its recent focus on liquidity and
leverage improvements. The company also maintains a good record of
financial reporting and compliance as a public company.
The proposed senior notes will be guaranteed on a senior unsecured
basis by MMC's other key subsidiaries, which eliminates structural
subordination risk. The B3 senior unsecured rating on the proposed
notes also reflects that the notes will rank pari passu with all
other senior unsecured obligations of MMC and its subsidiary,
Energy Resources LLC.
With the new debt issuance, MMC will offer to exchange and purchase
its 2024 notes using proceeds from the new notes. The exchange and
tender price will be at par and the offer will be non-mandatory for
bondholders. This will help the company to manage its liability
structure and extend its debt maturity profile.
MMC's liquidity is weak. That said, the estimated potential funding
gap is not material relative to its annual operating cash flow. As
of the end of 2022, it had a cash holding of USD65 million and
unused committed bank facilities totaling USD39 million. Moody's
expects the company to generate cash flows from operations of
around USD450 million over the next 18 months, which will be
insufficient to fully cover its USD376 million notes due in April
2024 and projected capital spending of close to USD200 million
during this period.
In addition, the company has the flexibility to defer its capital
spending as needed. MMC is in the process of issuing a new bond,
whose completion will enhance the company's liquidity position,
bridge the potential funding gap and strengthen its capital
structure significantly, as the existing notes represent most of
its debts.
MMC's integrated mining operations support its credit profile. The
company owns and operates two open-pit mines in Mongolia with more
than 25 years of remaining mine lives. It has fully-developed
mining and processing facilities and ready access to transportation
infrastructure. Such integrated mining capacities have helped MMC
to ramp up production and sales quickly in the second half of 2022
following China's relaxation of its Covid policies.
MMC's low-cost coal mining operations support its performance
against volatilities in coking coal prices. In 2022, its cash
operating costs, excluding royalties, were approximately USD75 per
ton by Moody's estimate, which helped keep its adjusted EBITDA
margin in the mid-20% range, despite low production volumes in
first half of the year. Moody's expects MMC's EBITDA margin to
expand to 40%-50% over next 12-18 months, driven by lower unit
production costs because of recovering production volumes and solid
sell prices, based on Moody's pricing assumptions on met coal,
adjusted for regional differences.
On the other hand, MMC's rating is constrained by the company's
small size compared with its rated peers. It also has high business
concentration risks with its single commodity production of coking
coal, high reliance on concentrated production assets and
transportation infrastructure, and a limited customer base in
China.
Given that all its mining operations are in Mongolia, the company
is also exposed to emerging market risk and evolving regulatory
environment of Mongolia.
MMC's rating is also constrained by the company's exposure to
carbon transition risks as a coking coal producer. These risks are
incorporated into Moody's view of the long-term pressures on the
company's credit profile from declining demand for its coal
products.
China's reopening will likely help boost MMC's financial profile
over the next 1-2 years. Moody's expects MMC to raise its
production volumes back to pre-pandemic levels and improve its
earnings. Depending on the size of the new debt issuance and the
acceptance rate of its tender and exchange offer, the agency
expects MMC's leverage, as measured by adjusted debt/EBITDA, to
improve to 1.0x before the end of 2024 from more than 3.0x in 2022,
driven by its recovering EBITDA and managed debt level.
ENVIRONMENTAL, SOCIAL, GOVERNANCE (ESG) CONSIDERATIONS
MMC's ESG Credit Impact Score is highly negative (CIS-4),
reflecting its very highly negative exposure to environmental risk,
and highly negative exposure to social and governance risks. MMC's
business concentration and liquidity profile render it limited
buffer against its exposure to ESG related risks.
MMC's environmental risk exposure is very highly negative (E-5). It
faces very high environmental risks associated with the coal mining
industry, including the negative environmental impact of mining and
carbon transition risks. Its high operating concentration and
limited alternative transportation infrastructure provide few
buffers against adverse environmental events. That said, MMC's risk
exposure is tempered by the company's efforts and investments in
managing its environmental risks. MMC reports its financial,
operational and sustainable development performance in accordance
with all applicable legislation, and implements sustainability
practices to manage its carbon emission, climate, waste and
pollution risks. It has also actively managed its land use and
water resources for its mining operations.
The company's highly negative social risk score (S-4) reflects the
high social risks associated with the coal mining industry,
including those related to health and safety and responsible
production. Nevertheless, the company is actively managing such
risks and has a track record of safe and responsible coal
production. It has maintained zero fatalities and continues to
improve its injury prevention measures.
MMC's governance risk exposure is highly negative (G-4), reflecting
its aggressive financial policy that has led to historically high
leverage, volatile credit metrics and discounted bond buybacks. The
company also faces a large debt maturity in 2024, which has
strained its liquidity. On the other hand, it has recently been
focusing on cash flow generation, debt reduction and managing its
upcoming debt maturity. As a public company, MMC also provides
regular and timely financial disclosures.
The stable outlook reflects Moody's expectation that MMC will
successfully complete its new debt issuance and strengthen its
liquidity in the near future. It also reflects Moody's expectation
that the company's coking coal production will remain stable, its
credit metrics will stay solid over the next 12 to 18 months, and
the company will adhere to prudent financial management.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Upgrade pressure is unlikely in the medium term, given that MMC is
in the process of restoring its earnings to pre-pandemic levels and
strengthening its liquidity, in particular refinancing its notes
due in 2024. Moody's could upgrade MMC's rating over time if the
company maintains strong liquidity through the cycles, enhances its
business scale and diversification, improves its financial profile
over a sustained period and demonstrates a track record of prudent
financial management.
Conversely, Moody's could downgrade MMC's rating if the company
does not complete the new debt issuance as announced in a timely
manner, such that its liquidity becomes weak as the company
approaches the April 2024 bond maturity. Its rating could also be
downgraded if company's mining production deteriorates, its
financial profile weakens and/or it fails to adhere to a
conservative financial strategy. Given that all of MMC's mining
operations are in Mongolia, any downgrade of the rating of the
Government of Mongolia (B3 stable) could also pressure MMC's
rating.
The principal methodology used in these ratings was Mining
published in October 2021.
PROFILE
With its operation commenced in 2009, Mongolian Mining Corporation
is Mongolia's largest producer and exporter of high-quality washed
hard coking coal. It has fully integrated coking coal operations
that comprise mining, processing, transportation, and sales and
marketing of coking coal and other coal products. In 2022, its
total run-of-mine coal production was 5.7 million tons.
Listed on the Stock Exchange of Hong Kong (HKEX) since 2010, MMC
owns and operates two open-pit coking coal mines in the Gobi Desert
– the main Ukhaa Khudag (UHG) mine and the Baruun Naran (BN)
mine. All of the company's coal operations are located in Mongolia,
and it sells most of its coal products to industrial end-users in
China.
=====================
N E W Z E A L A N D
=====================
ABCHAL INVESTMENTS: Court to Hear Wind-Up Petition on May 12
------------------------------------------------------------
A petition to wind up the operations of Abchal Investments Limited
will be heard before the High Court at Auckland on May 12, 2023, at
10:45 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on March 22, 2023.
The Petitioner's solicitor is:
Cloete Van Der Merwe
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
K F CONSTRUCTION: Court to Hear Wind-Up Petition on May 12
----------------------------------------------------------
A petition to wind up the operations of K F Construction Limited
will be heard before the High Court at Auckland on May 12, 2023, at
10:45 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on March 23, 2023.
The Petitioner's solicitor is:
Cloete Van Der Merwe
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
MF OFSOSKE: BDO Christchurch Appointed as Receiver and Manager
--------------------------------------------------------------
Colin Gower and Diana Matchett of BDO Christchurch on April 18,
2023, were appointed as receivers and managers of The Mf Ofsoske
Family Trust and The Ja Ofsoske Family Trust Partnership.
The receivers and managers may be reached at:
BDO Christchurch
Awly Building, Level 4
287–293 Durham Street North
Christchurch 8013
REVELL FAMILY: Garry Whimp Appointed as Liquidator
--------------------------------------------------
Garry Whimp of Blacklock Rose Limited on June 3, 2023, were
appointed as liquidator of The Revell Family Group Limited.
The liquidator may be reached at:
Blacklock Rose Limited
PO Box 6709
Victoria Street West
Auckland 1142
=================
S I N G A P O R E
=================
DUTHANE INDUSTRIAL: Creditors' Meetings Set for May 3
-----------------------------------------------------
Duthane Industrial Services Pte Ltd, which is in compulsory
liquidation, will hold a meeting for its creditors on May 3, 2023,
at 3:00 p.m., via Zoom.
Agenda of the meeting includes:
a. to update the creditors on the status of the liquidation of
the Company;
b. to approve the Liquidators’ fees and disbursements;
c. to approve the petitioning creditors’ costs and the
payment thereof; and
d. Any other business.
The company's liquidators are:
Leow Quek Shiong
Gary Loh Weng Fatt
c/o 600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
FAR EAST: Court to Hear Wind-Up Petition on May 12
--------------------------------------------------
A petition to wind up the operations of Far East Distribution Pte
Ltd will be heard before the High Court of Singapore on May 12,
2023, at 10:00 a.m.
THF Wines Pty Ltd filed the petition against the company on April
17, 2023.
The Petitioner's solicitors are:
Michael Por Law Corporation
160 Robinson Road
#04-06, SBF Center
Singapore 068914
HOMESTEAD HOLLAND: Creditors' Meetings Set for May 2
----------------------------------------------------
Homestead Holland Pte Ltd will hold a meeting for its creditors on
May 2, 2023, at 4:00 p.m., via electronic means.
Agenda of the meeting includes:
a. to receive a statement of the Company's affairs together
with a list of creditors and the estimated amounts of their
claims;
b. to resolve that Cameron Lindsay Duncan and David Dong-Won
Kim care of KordaMentha Pte Ltd be and are hereby appointed
jointly and severally as Liquidators of the Company for the
purpose of such winding up and that their remuneration be
based on the normal scale rates and be paid out of the
Company assets;
c. to appoint a Committee of Inspection of not more than five
members, if thought fit;
d. to resolve that the Liquidators be at liberty to open,
maintain and operate any bank account or an account for
monies received by them as Liquidators of the Company, with
such bank as the Liquidators deem fit;
e. to resolvd that the Liquidators be authorised to exercise
any of the powers provided by Section 144(1)(b), (c), (d),
(e) and (f) of the Insolvency, Restructuring and Dissolution
Act 2018; and
f. Any other business.
[*] Distressed Property Listings in Singapore Jump in Q1
---------------------------------------------------------
The Business Times reports that the number of mortgagee listings
jumped in the first quarter (Q1) of 2023, with more distress sales
expected in the second half of the year as bankruptcy applications
increase.
The number of bankruptcy applications rose quarter on quarter by
5.6% to 959 in Q1 2023, BT discloses citing data from the Ministry
of Law. It is also 22.2% higher than the number of applications in
Q1 2022.
According to the report, both Knight Frank and Edmund Tie, which
hold auctions every month, saw higher numbers of mortgagee listings
in the first three months of the year.
Mortgagee listings at auctions conducted by Knight Frank more than
trebled to 32 in Q1 2023 from 10 in the previous quarter. However,
this was still a decrease from the 47 listings in Q1 2022, the
report relays.
Residential mortgagee listings more than doubled to 18 from the
previous quarter, although they were still 14.3% lower than the 21
in Q1 2022. A non-landed home located in St Regis Residences was
listed for receiver sale for two consecutive months, and eventually
sold outside of auction for SGD13.5 million.
Knight Frank's retail and office mortgagee listings in Q1 also
increased to four and three, respectively, from no listings in the
previous quarter, BT discloses. Meanwhile, industrial listings more
than trebled to seven from the last quarter. Knight Frank
attributed the increase to a tougher business climate and rising
interest rates which it said has made business continuity
challenging.
=====================
S O U T H K O R E A
=====================
TERRAFORM LABS: Prosecutors Indict Co-Founder Over Crypto Crash
---------------------------------------------------------------
Yonhap News Agency reports that prosecutors indicted Daniel Shin, a
co-founder of Terraform Labs, on April 25 in connection with the
massive crash of the cryptocurrency firm's TerraUSD and Luna coins
in May last year that wiped out nearly KRW50 trillion (US$37.5
billion) in market value.
Yonhap relates that the Seoul Southern District Court indicted
Shin, 38, without physical detention on multiple charges, including
fraud, breach of duty and embezzlement, prosecutors said.
Together with Do Kwon, the other Terraform co-founder currently
detained in Montenegro for passport forgery, Shin was behind the
structuring of the TerraUSD and Luna cryptocurrencies, whose
implosion led to the wipe-out of nearly 50 trillion won in market
value, Yonhap notes. Prosecutors are seeking the extradition of
Kwon.
TerraUSD was designed as a stable coin, which was pegged to stable
assets, like the U.S. dollar, but plunged as low as 10 cents in
May, breaking its 1-to-1 peg with the U.S. dollar.
According the report, prosecutors suspect Shin knew the price peg
system was algorithmically impossible but duped investors around
the world into investing in the coins by keeping their prices up
via trading manipulation and fraudulent publicity campaigns.
Yonhap relates that Shin and his accomplices had already pocketed
KRW462.9 billion in illegal profits when the two coins crashed last
year, prosecutors concluded.
Shin is also charged with collecting KRW122.1 billion of investment
from venture capital firms at home and overseas with a sham project
promoting the coins as a currency to pay for goods, the report
adds.
Based in Seoul, Korea, Terraform Labs Pte. Ltd. operates a
price-stable cryptocurrency. The Company seeks to power the
next-generation payment network and grow the real GDP of the
blockchain economy. Terraform labs provides financial
infrastructure for the next generation of decentralized
application.
=================
S R I L A N K A
=================
CO-OPERATIVE INSURANCE: Fitch Lowers National IFS Rating to BB(lka)
-------------------------------------------------------------------
Fitch Ratings has downgraded Co-operative Insurance Company PLC's
(CICPLC) National Insurer Financial Strength (IFS) Rating to
'BB(lka)' from BBB(lka)' and maintained the Rating Watch Negative
(RWN). The downgrade follows the recent restrictions imposed by the
Insurance Regulatory Commission of Sri Lanka (IRCSL) limiting
CICPLC's ability to carry out insurance operations.
KEY RATING DRIVERS
The multiple-notch downgrade reflects its 'Least Favourable'
corporate governance ranking for CICPLC following the recent
restrictions on the insurer's business activities after the
regulator found governance shortcomings. Its assessment of CICPLC's
governance structure and corporate transparency is now weaker, and
Fitch believes that this development may affect the insurer's
franchise and competitive positioning, which may then result in a
weaker business profile.
On April 11, 2023, the IRCSL suspended CICPLC's registration to
carry out insurance business as the insurer failed to maintain the
composition of the board of directors in accordance with the
company's articles of association. CICPLC's announcement says the
suspension will in force until 2 May 2023, during which it will not
be able to acquire or renew business. The company says that it will
be able to continue servicing its existing customers.
Trading of CICPLC's shares on the Colombo Stock Exchange was
suspended on 18 April 2023 as the company failed to comply with the
listing rules that require the chairman or one member of the audit
committee to be a member of a professional accounting body.
The RWN reflects the uncertainty regarding the resolution of the
governance issues and restrictions as well as the potential impact
on the CICPLC's franchise and business volume. The RWN also
continues to reflect the potential for the insurer's
creditworthiness to deteriorate relative to other entities on the
Sri Lankan National Rating scale amid high investment and liquidity
risks, pressure on its regulatory capital position and a weaker
financial performance outlook. The heightened investment risks and
earnings pressure amid the weak operating environment could affect
the insurer's regulatory capital profile.
RATING SENSITIVITIES
Fitch expects to resolve the RWN once Fitch has more clarity on the
resolution of CICPLC's corporate governance shortcomings as well as
when the impact of Sri Lanka's economic crisis on CICPLC's credit
profile becomes more apparent. This may take longer than six
months.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Fitch's perception that CICPLC's corporate governance practices
have deteriorated, including a weaker governance structure and
financial transparency limitations
- Weakening in CICPLC's company profile, for instance, due to a
weaker franchise, operating scale, business risk profile
- Inability to access foreign- or local-currency assets to meet the
insurer's liabilities, including any restrictions by the
government
- Rising investment and asset risks, including a downgrade of the
ratings of financial institutions or the sovereign
- Deterioration in the risk-based capitalisation ratio to below
190% for a sustained period (9M22: 204%).
- Sustained deterioration in financial performance, including the
combined ratio remaining above 110% (1H22: 101%), or weaker risk
management practices
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- There is limited scope for upward rating action given the RWN
- Fitch's perception that there is a sustained improvement in
CICPLC's corporate governance practices
Entity/Debt Rating Prior
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V I E T N A M
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SAIGON THUONG: Moody's Affirms 'B3' Deposit & Issuer Ratings
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Moody's Investors Service has affirmed Saigon Thuong Tin Commercial
Joint-Stock Bank's (Sacombank) B3 long-term (LT) foreign (FC) and
local (LC) currency bank deposits and issuer ratings, and the
bank's caa1 Baseline Credit Assessment (BCA) and Adjusted BCA.
Moody's has also affirmed Sacombank's B2 LT FC and LC Counterparty
Risk Ratings (CRR), B2(cr) LT Counterparty Risk (CR) Assessment,
and the bank's NP short-term (ST) FC and LC CRR, ST FC and LC bank
deposit ratings, ST FC and LC issuer ratings and NP(cr) ST CR
Assessment.
At the same time, Moody's has changed the outlook on Sacombank's LT
bank deposit ratings and LT issuer ratings to positive from stable,
reflecting the agency's expectation of a further improvement to the
bank's credit profile, driven by its resolution of legacy problem
loans.
RATINGS RATIONALE
The affirmation of Sacombank's B3 ratings and caa1 BCA reflects its
improving, yet weak standalone credit profile. While the bank's
problem assets have decreased, its capital remains modest, a result
of its weak internal capital generation. The caa1 BCA also
considers the bank's moderate funding and liquidity.
Sacombank's adjusted problem loans ratio, which includes
nonperforming loans (NPL), gross Vietnam Asset Management Company
(VAMC) bonds and legacy problem assets, improved to 6.7% as of
December 2022 from 11.9% a year earlier as the bank cleared a
significant portion of its legacy problem assets in 2022. Still,
its adjusted problem loans ratio remains higher than the average of
1.8% for its rated peers in Vietnam, mostly due to the outstanding
stock of VAMC bonds. Sacombank plans to make full provisions for
its VAMC bonds in 2023, which will be credit positive if
successful.
Although Moody's expects the bank's new NPL formation to increase,
given the ongoing challenges in the real estate and construction
sectors, these risks are offset by the bank's improving asset
quality and already low BCA.
Sacombank's core capital, as measured by tangible common equity
(TCE) as a percentage of risk weighted assets (RWA), declined
modestly to 6.3% as of December 2022 from 6.4% a year earlier
because capital consumption outpaced internal capital generation.
Moody's expects the bank's capital to remain lower than the average
for other rated banks in Vietnam. This is because under Sacombank's
financial rehabilitation programme as structured by the State Bank
of Vietnam, the bank can raise new capital only after it clears a
material part of its remaining problem assets and exits from the
programme. Profitability will also remain weak because the bank
plans to fully provide for its stock of VAMC bonds over the next
12-18 months.
The affirmation of the bank's BCA also reflects its moderate
funding and liquidity. Sacombank's low reliance on market funds, is
counterbalanced by its modest liquidity.
As of December 2022, high-quality liquid assets such as cash,
balances with the central bank and government securities accounted
for a modest 12% of the bank's total assets. In addition, 33% of
its government securities were pledged as collaterals for loans and
will unlikely be readily marketable in times of need.
Sacombank's B3 LT deposit and issuer ratings are one notch above
its caa1 BCA, reflecting Moody's expectation of a moderate
probability of support from the Government of Vietnam (Ba2 stable)
for the bank when needed.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's could upgrade Sacombank's deposit and issuer ratings if its
standalone credit strength improves, leading to an upgrade of its
BCA. The BCA could be upgraded if the bank improves its asset
quality by reducing its NPL ratio to less than 3% by resolving its
legacy problem assets, which also helps improve its profitability
and support internal capital generation. The BCA upgrade will also
be subjected to the bank maintaining stable funding and liquidity.
Moody's could downgrade Sacombank's deposit and issuer ratings if
the agency assesses that government support for the banks has
weakened. Moody's would also downgrade the bank's ratings and BCA
if its NPL ratio increases above 10%, leading to higher credit
costs and weaker profitability. A decline in its TCE/RWA ratio to
below 6% would also be negative for the bank's BCA and ratings.
The principal methodology used in these ratings was Banks
Methodology published in July 2021.
Headquartered in Ho Chi Minh City, Saigon Thuong Tin Commercial
Joint-Stock Bank reported total assets of VND592 trillion as of
December 31, 2022.
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