/raid1/www/Hosts/bankrupt/TCRAP_Public/230512.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Friday, May 12, 2023, Vol. 26, No. 96
Headlines
A U S T R A L I A
BWX LIMITED: Receivers to Put Sukin Up for Sale
CHEDDAR: Cashback App to Shut Down in August
CREMORNE CLUB: Second Creditors' Meeting Set for May 17
DAY CARE: First Creditors' Meeting Set for May 17
HISTORIC AIRCRAFT: Second Creditors' Meeting Set for May 17
LANGUAGE SWITCH: Second Creditors' Meeting Set for May 17
LIBERTY SERIES 2020-1: Moody's Ups Rating on Cl. E Notes From Ba1
REDBUBBLE: To Cut 23% of Jobs as Part of Cost-Cutting Measures
RESIMAC BASTILLE 3: Revised Loan Pool No Impact on Moody's Ratings
RMT CONSULTANTS: Second Creditors' Meeting Set for May 17
C H I N A
CHINA: Audits Littered With Deficiencies, US Acctg Watchdog Finds
I N D I A
ALMEHTAB INDUSTRIES: CARE Keeps B+ Debt Ratings in Not Cooperating
ALUMIL BUILDMATE: CARE Lowers Rating on INR4.76cr Loan to B
ARCOTECH LIMITED: CARE Keeps D Debt Rating in Not Cooperating
BIHAR STATE: Liquidation Process Case Summary
D D INDUSTRIES: Insolvency Resolution Process Case Summary
DK INFRASTRUCTURE: Insolvency Resolution Process Case Summary
GREENSTONE GRANITO: CARE Assigns B Rating to INR31.65cr LT Loan
GUINESS SECURITIES: CRISIL Cuts Long/Short Term Loan Ratings to D
HANSON AGRO: Insolvency Resolution Process Case Summary
HANSON PETRO: Insolvency Resolution Process Case Summary
IBAHN ILLUMINATION : Voluntary Liquidation Process Case Summary
INDO PRODUCTS: CARE Keeps B- Debt Rating in Not Cooperating
INNOVATIVE IDEALS: CARE Keeps D Debt Ratings in Not Cooperating
JABALPUR MSW: CARE Keeps D Debt Rating in Not Cooperating
JSW STEEL: Fitch Affirms LongTerm IDR at 'BB', Outlook Stable
KAISHA PACKWELL: Voluntary Liquidation Process Case Summary
MANUGRAPH INDIA: CRISIL Moves B- Debt Rating to Not Cooperating
NACHIAPPAN K: CARE Keeps B- Debt Rating in Not Cooperating
NASIR ILAHI: CARE Keeps C Debt Rating in Not Cooperating Category
NORTH WESTERN: CRISIL Moves B- Debt Ratings to Not Cooperating
PADAM MOTORS: CARE Lowers Rating on INR15cr ST Loan to D
POOJA MINI: CARE Keeps B- Debt Rating in Not Cooperating Category
PRAKASH OFFSET: CRISIL Lowers Rating on INR14.5cr Term Loan to B+
RIDDHI SIDDHI: CRISIL Withdraws B+ Debt Rating on INR50cr Loan
SAASTHA MEGA: CARE Lowers Rating on INR120cr LT Loan to B
SAHA INFRATECH: CARE Keeps D Debt Rating in Not Cooperating
SHREENATHJI ENTERPRISE: CRISIL Assigns D Rating to INR12.5cr Loan
SILVER JUBILEE: CRISIL Lowers Long/Short Term Loan Ratings to D
SOUTHERN HEALTH: CRISIL Withdraws B+ Debt Rating on INR14cr Loan
SURYAJYOTI SPINNING: Liquidation Process Case Summary
SWADESH MILK: CARE Keeps B+ Debt Rating in Not Cooperating
T M SUBRAMANIAM: CARE Keeps B- Debt Rating in Not Cooperating
TATA STEEL: Fitch Affirms 'BB+' Issuer Default Rating, Outlook Pos.
VARSHINI INDUSTRIES: CARE Cuts Rating on INR5.0cr LT Loan to B-
WHITE GOLD: CARE Keeps B- Debt Rating in Not Cooperating Category
I N D O N E S I A
SAKA ENERGI: Moody's Affirms 'B2' CFR, Outlook Remains Stable
N E W Z E A L A N D
EAGLES DRAINAGE: Court to Hear Wind-Up Petition on May 17
LIMELIGHT GROUP: DTR Closing 20 Shops Due to 'multiple Challenges'
NZ4U2U LIMITED: Court to Hear Wind-Up Petition on June 8
OREGON MANAGEMENT: Creditors' Proofs of Debt Due on June 2
SKP PROPERTY: Creditors' Proofs of Debt Due on June 12
TITAN ACQUISITIONCO: Moody's Cuts CFR to B3, Outlook Stable
WALKER FAMILY: Creditors' Proofs of Debt Due on June 1
S I N G A P O R E
CAPITAL MATCH: To Shut Platform and Enters Liquidation
ITNL INTERNATIONAL: Court to Hear Wind-Up Petition on April 22
MA2 SHOP: Commences Wind-Up Proceedings
PRISMINVEST PARTNERS: Members' Final Meeting Set for June 12
PWC NETWORK: Members' Final Meeting Set for June 12
THREE ARROWS: Co-Founder Su Gets Restraining Order Against Hayes
TITAN PRINCIPALS: Court Enters Wind-Up Order
S R I L A N K A
SRI LANKA: Requests Debt Treatment in Bilateral Committee Meeting
- - - - -
=================
A U S T R A L I A
=================
BWX LIMITED: Receivers to Put Sukin Up for Sale
-----------------------------------------------
The Sydney Morning Herald reports that Australia's largest
cosmetics sale is now kicking off with BWX's receivers unveiling
plans to sell the collapsed empire's most valuable remaining brand,
Sukin, as well as Andalou Naturals and Mineral Fusion, as the
Commonwealth Bank attempts to claw back more than AUD100 million
from the group.
The receivers have also formally kicked off the sales process for
BWX's majority stake in Zoe Foster Blake's Go-To Skincare, SMH
says.
"The receivers and managers expect to mandate sale advisers for the
Australian business, which consists predominately of the Sukin
brand, by the end of May 2023 and will commence the sale process
shortly thereafter," the receivers, led by KPMG's David Hardy, said
in a statement on May 11.
Sukin is a natural skincare brand sold through supermarkets Coles
and Woolworths as well as Priceline and Chemist Warehouse.
According to SMH, beauty and cosmetics manufacturer BWX hit
financial strife after forking out AUD89 million for a majority
stake in Zoe Foster Blake's popular Go-To Skincare brand and after
tough trading conditions meant its practice of channel stuffing
forced it to slash profit forecasts.
BWX collapsed last month after it lost the support of the
Commonwealth Bank, which later appointed receivers to recover more
than AUD105 million in loans, the report notes. The receivers have
been selling its brands and stakes in star-studded brands,
including Elsa Pataky-founded Purely Byron, ever since.
SMH says KPMG has appointed advisory firm Grant Samuel as a sale
adviser to find a new buyer for BWX's 50.1% stake in Go-To, which
operates independently of BWX and is not in administration.
A spokesperson for Zoe Foster Blake declined to comment on whether
she was considering buying back the stake. Ms. Blake founded the
brand in 2004 and remains its chief creative officer.
Meanwhile, KPMG's US team will lead the sale of Mineral Fusion and
Andalou Naturals, which is sold in Priceline and Chemist Warehouse,
SMH reports.
"We are pleased with the progress made so far in readying the US
business for sale. The Mineral Fusion and Andalou brands are very
strong brands, and we expect there to be significant interest in
the sale process," SMH quotes Mr. Hardy as saying.
The receivers have also made "significant steps" in stabilising
local operations, normalising inventory and increasing production
levels, he added, SMH relays.
"I want to thank our customers and suppliers for their ongoing
support, as well as the BWX team who are continuing to go above and
beyond in assisting the receivers and managers."
SMH notes that BWX has sold two of its other brands, e-commerce
platforms Nourished Life and Flora & Fauna, to a New Zealand
wellness company, while Purely Byron has formally been wound up.
Nourished Life founder and entrepreneur Irene Falcone told SMH BWX
had "tarnished" the beauty retailer she founded in 2011 and is
establishing a direct rival website called Sans World.
BWX's other brands include Renew Skin Care, cosmetics manufacturer
Beautiworx, and Edward Beale Hair Care.
About BWX Limited
BWX Limited manufactures body, hair and skin care products. The
Company produces and distributes moisturizers, oils, lotions,
scrubs, creams and other related products.
KPMG's David Hardy, Gayle Dickerson, James Stewart and James
Dampney have been appointed as receivers and managers of Nourished
Life and Flora & Fauna, together known as BWX Digital.
FTI Consulting have been appointed by the BWX board as
administrators.
CHEDDAR: Cashback App to Shut Down in August
--------------------------------------------
News.com.au reports that a start-up with the backing of Australia's
biggest bank is shutting down less than two years since it
launched.
The Commonwealth Bank of Australia threw its weight behind a deal
discovery and cashback app called Cheddar which was hailed as the
'new TikTok of shopping'.
According to news.com.au, Cheddar got off the ground through the
CBA's venture scaling business x15ventures in November 2021.
The app proudly advertised itself as being strictly for "non
Boomers" and started off with more than 600 merchants on board,
including Menulog, Agoda, Under Armour, Net-A-Porter, Pizza Hut,
Culture Kings and Cotton On.
It was a direct competitor to other successful companies offering
similar services, including Westpac-backed ShopBack, ANZ's own
version Cashrewards, and Afterpay.
But 18 months later, the company has folded, with August 31
earmarked as the day it will be wound down, the report states.
In a statement on its website earlier this week, the business
flagged that it was closing down, writing in a note to customers;
"It's been a wild ride but now it's time to say goodbye and close
up Cheddar," news.com.au relays.
News.com.au relates that users of the platform will not lose any
money. Instead, they must cash out and withdraw all their available
balance by the August deadline and they are no longer to purchase
anything through the app.
Since its launch, Cheddar expanded to bring 1,000 merchants into
the fold.
To date, the Gen Z app has paid out a whopping AUD2 million in
cashbacks and bonuses.
"We started Cheddar to help young Australians get more back from
their everyday spending – and we've done just that," the
website's message said.
The statement added: "While we're sad to be saying goodbye, we're
incredibly grateful for the support we've received from customers
and brand partners, and all the hard work from our wonderful team
over the last two years."
It's unclear how many jobs have been lost or how many customers the
company had in the first place, news.com.au notes.
When contacted, news.com.au received an auto reply that read
"Cheddar is closing, and we're busy making sure all of our
customers can withdraw their hard-earned Cheddar, so our response
times may be slower than usual."
Cheddar is a brand of CBA's New Digital Businesses Pty Ltd, a
wholly owned but non-guaranteed subsidiary of the bank.
CREMORNE CLUB: Second Creditors' Meeting Set for May 17
-------------------------------------------------------
A second meeting of creditors in the proceedings of Cremorne Club
Fitness Pty. Ltd. has been set for May 17, 2023 at 11:00 a.m. at
the offices of Worrells at Level 14, 570 Bourke Street in Melbourne
and via virtual meeting technology.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 16, 2023 at 5:00 p.m.
Con Kokkinos of Worrells was appointed as administrator of the
company on April 11, 2023.
DAY CARE: First Creditors' Meeting Set for May 17
-------------------------------------------------
A first meeting of the creditors in the proceedings of Day Care
Services NSW Pty Ltd will be held on May 17, 2023, at 11:00 a.m.
via Zoom and telephone conferencing facilities.
Stephen Wesley Hathway of Helm Advisory was appointed as
administrator of the company on May 5, 2023.
HISTORIC AIRCRAFT: Second Creditors' Meeting Set for May 17
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Historic
Aircraft Restorations Pty Limited has been set for May 17, 2023 at
10:00 a.m. at the offices of Smith Hancock Chartered Accountant at
Suite 47.04, Level 47, 8 Parramatta Square, 10 Darcy Street in
Parramatta and via virtual meeting technology.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 16, 2023 at 4:00 p.m.
Peter Hillig of Smith Hancock Chartered Accountant was appointed as
administrator of the company on April 11, 2023.
LANGUAGE SWITCH: Second Creditors' Meeting Set for May 17
---------------------------------------------------------
A second meeting of creditors in the proceedings of Language Switch
Pty Ltd and SPW Enterprises Pty Ltd has been set for May 17, 2023
at 11:00 a.m. via 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 May 16, 2023 at 4:00 p.m.
David Samspon and Maxwell Prentice of BPS Resolved were appointed
as administrators of the company on April 11, 2023.
LIBERTY SERIES 2020-1: Moody's Ups Rating on Cl. E Notes From Ba1
-----------------------------------------------------------------
Moody's Investors Service has upgraded the ratings on four classes
of notes issued by Liberty Series 2020-1 Auto.
The affected ratings are as follows:
Issuer: Liberty Series 2020-1 Auto
Class B Notes, Upgraded to Aa1 (sf); previously on Feb 7, 2020
Definitive Rating Assigned Aa2 (sf)
Class C Notes, Upgraded to A1 (sf); previously on Feb 7, 2020
Definitive Rating Assigned A2 (sf)
Class D Notes, Upgraded to A3 (sf); previously on Sep 29, 2021
Upgraded to Baa1 (sf)
Class E Notes, Upgraded to Baa3 (sf); previously on Sep 29, 2021
Upgraded to Ba1 (sf)
RATINGS RATIONALE
The upgrades were prompted by an increase in note subordination
available for the affected notes and performance of the underlying
portfolio to date.
Following the March 2023 payment date, the note subordination
available for the Class B and Class C Notes has increased to 26.4%
and 20.0%, respectively, from 17.3% and 12.8% at closing. The note
subordination available for the Class D and Class E Notes has
increased to 15.1% and 8.2%, respectively, from 13.7% and 6.7% at
the time of the last rating action for these notes in September
2021.
As of end-March 2023, 8.9% of the outstanding pool was 30-plus day
delinquent and 5.7% was 90-plus day delinquent. The portfolio has
incurred 1.8% and 0.8% (as a percentage of the original note
balance) of gross and net losses to date, all of which have been
covered by excess spread.
Based on the observed performance to date and loan attributes,
Moody's has maintained its expected default assumption at 6.25% of
the current note balance (equivalent to 3.1% of the original note
balance) from the last rating action in July 2022. Moody's has also
maintained the Aaa portfolio credit enhancement at 26%.
The transaction is a securitisation of a portfolio of Australian
consumer auto loans, secured by motor vehicles, originated by
Liberty Financial Pty Ltd.
The principal methodology used in these ratings was "Moody's Global
Approach to Rating Auto Loan- and Lease-Backed ABS" published in
November 2022.
Factors that would lead to an upgrade or downgrade of the ratings:
Factors that could lead to an upgrade of the ratings include (1)
performance of the underlying collateral that is better than
Moody's expectations, and (2) an increase in the notes' available
credit enhancement.
Factors that could lead to a downgrade of the ratings include (1)
performance of the underlying collateral that is worse than Moody's
expectations, (2) a decrease in the notes' available credit
enhancement, and (3) a deterioration in the credit quality of the
transaction counterparties.
REDBUBBLE: To Cut 23% of Jobs as Part of Cost-Cutting Measures
--------------------------------------------------------------
News.com.au reports that an Australian online retailer has slashed
jobs for the second time in less than six months, announcing it is
cutting 23% of its workforce.
News.com.au relates that Redbubble, an online arts and craft
marketplace, announced the new round of cost-cutting in a statement
released to the ASX, saying it was part of a bid to save between
AUD13 million and AUD15 million annually.
The latest round of job cuts will see 75 roles axed. It comes after
the business cut 14% of its workforce back in January.
The current cuts are set to cost the company AUD5.1 million, the
report says.
According to news.com.au, Redbubble's share price hit AUD7 during
the Covid-19 pandemic, but its stock has plummeted 70 per cent in
the last 12 months and is currently sitting at just AUD0.42.
Martin Hosking, Redbubble's co-founder, returned to the CEO role in
March following the resignation of Michael Ilczynski after two
years leading the company, recalls news.com.au.
"Since being appointed CEO, my primary focus has been returning the
group to profitability as soon as possible," news.com.au quotes Mr.
Hosking as saying.
"It has become clear that to achieve this, we need to further
reduce our cost base. As a result, we have made the difficult
decision to remove a number of roles from the group."
He added the group had "more clearly defined" its two operating
companies, Redbubble and TeePublic, which sells T-shirts with
different designs that it acquired in 2018, news.com.au relays.
"We expect this new structure will allow each marketplace to
operate more efficiently and effectively, with a greater focus on
their individual strengths and unique value propositions," he
said.
RESIMAC BASTILLE 3: Revised Loan Pool No Impact on Moody's Ratings
------------------------------------------------------------------
Moody's Investors Service announced that the purchase of AUD305.1
million of mortgage loans into RESIMAC Bastille Trust - Warehouse
Series No. 3 on May 8, 2023 (the substitution) would not, in and of
itself and as of this point in time, result in a reduction,
placement on review for possible downgrade or withdrawal of Moody's
current ratings of the notes issued by RESIMAC Bastille Trust -
Warehouse Series No.3.
Current ratings of the notes are as follows:
Class A2 Notes, currently rated Aaa (sf)
Class B Notes, currently rated Aa2 (sf)
Class C Notes, currently rated A2 (sf)
Class D Notes, currently rated Baa2 (sf)
Class E Notes, currently rated Ba2 (sf)
The revised pool has a weighted-average current loan-to-value ratio
of 71.4% and weighted-average seasoning of 11.2 months. The pool
includes loans extended to borrowers with prior adverse credit
history (1.2%) and loans underwritten on an alternative
documentation basis (91.0%).
The transaction is a securitisation of a revolving portfolio of
non-conforming and near-prime Australian residential mortgage loans
originated and serviced by RESIMAC Limited.
The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
July 2022.
RMT CONSULTANTS: Second Creditors' Meeting Set for May 17
---------------------------------------------------------
A second meeting of creditors in the proceedings of RMT Consultants
Pty Ltd has been set for May 17, 2023 at 11:00 a.m. via Zoom
meeting.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 16, 2023 at 4:00 p.m.
Grahame Ward and Edwin Narayan of Mackay Goodwin were appointed as
administrators of the company on April 11, 2023.
=========
C H I N A
=========
CHINA: Audits Littered With Deficiencies, US Acctg Watchdog Finds
-----------------------------------------------------------------
Reuters reports that a U.S. accounting watchdog found unacceptable
deficiencies in audits of U.S.-listed Chinese companies performed
by KPMG in China and PricewaterhouseCoopers in Hong Kong, the
government agency said on May 10.
Reuters relates that the U.S. Public Company Accounting Oversight
Board (PCAOB) published the findings of its inspections after
gaining access to Chinese company auditors' records for the first
time last year following more than a decade of negotiations with
Chinese authorities. That access kept roughly 200 China-based
public companies from potentially being kicked off U.S. stock
exchanges.
The deficiencies were so great that auditors failed to obtain
enough evidence to substantiate companies' financial statements,
PCAOB Chair Erica Williams told reporters on May 10, Reuters
relays. The firms, two of the so-called "Big Four" in global
accounting, represent 40% of the market share of U.S.-listed
companies audited by Hong Kong and mainland China firms, she said.
According to Reuters, PricewaterhouseCoopers (PwC) in Hong Kong
said it is working with the PCAOB to address issues raised and
noted the inspection report marks an important milestone for U.S.
and Chinese cooperation. KPMG Huazhen in China said in a statement
it has taken steps to address the issues the PCAOB had found.
While the agency said it usually discovers problems when first
gaining access to a foreign country's audit records, the
deficiencies may raise worries among investors over the accuracy of
U.S.-listed Chinese companies' public financial statements, Reuters
relays. Some investors, though, said the findings could ultimately
help improve Chinese company accounting.
"The fact that we found so many deficiencies is really a sign that
the inspection process worked, and now we can go about the work of
holding firms accountable and driving audit quality," the report
quotes Ms. Williams as saying.
The agency said it inspected eight audits. It did not disclose
which companies' audits it had selected for inspection, but Reuters
has previously reported that Alibaba Group Holding and Yum China
Holdings were among them.
"We shouldn't be surprised that deficiencies were found," said
Brendan Ahern, chief investment officer of Krane Funds Advisors,
which operates China-focused funds. "One would assume the auditors
will take the guidance and adjust their practices going forward."
Reuters adds that the PCAOB will give the two auditors a year to
remediate deficiencies around quality controls, and the agency will
make referrals to the agency's enforcement team where appropriate,
Ms. Williams said. Such investigations could ultimately lead to
monetary penalties or barring audit firms from doing work for
U.S.-listed companies.
PCAOB officials have already begun fieldwork for 2023 inspections,
Reuters notes. With its 2023 work, the PCAOB expects it will have
inspected auditors representing 99% of the work in the region.
The agency will continue to demand full access to do its work, Ms.
Williams said. If Chinese authorities begin to limit access for
inspections and investigations, a U.S. law agreed to last year sets
a two-year clock for compliance or ouster from American exchanges,
Reuters relays.
=========
I N D I A
=========
ALMEHTAB INDUSTRIES: CARE Keeps B+ Debt Ratings in Not Cooperating
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Almehtab
Industries Private Limited (AIPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 14.14 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Long Term/Short 1.46 CARE B+; Stable/CARE A4;
Term Bank ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 2.50 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 May 4, 2022,
placed the rating(s) of AIPL under the 'issuer non-cooperating'
category as AIPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. AIPL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 20, 2023, March 30, 2023, April 9, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
New Delhi based Almehtab Industries Private Limited (AIPL) (CIN No.
U25200DL2011PTC214111) was incorporated in February, 2011 and
commenced its commercial operations from January, 2013. The company
is currently managed by Mr. Ram Inder Singh Kochar and Mrs.
Hanspreet Kochar. The company is engaged in the manufacturing of
recycled polyethylene terephthalate (RPET) by recycling of
post-consumer PET bottles, jars etc. It caters to the packaging
needs of pharmaceuticals, distillery, cosmetic and other
manufacturing companies. In order to meet the specific demands of
its customers, it manufactures pet bottles in different colors,
shapes and sizes, ranging from 50 ml size to 2 liters size.
ALUMIL BUILDMATE: CARE Lowers Rating on INR4.76cr Loan to B
-----------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Alumil Buildmate Private Limited (ABPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 4.76 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 3.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated March 16, 2022,
placed the rating(s) of ABPL under the 'issuer non-cooperating'
category as ABPL 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. ABPL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
January 30, 2023, February 9, 2023, February 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).
The ratings assigned to the bank facilities of ABPL have been
revised on account of non-availability of requisite information.
Telangana based Alumil Buildmate Private Limited (ABPL) was
incorporated in 2016 by Mrs. Seema Anand along with her spouse Mr.
Anamol Anand. The company is engaged in the manufacturing of
aluminum windows and aluminum doors and caters to real estate
developers as well as commercial segment. The company purchases raw
materials like aluminum from the suppliers located at European
countries and nuts, bolts and other ancillary items from the local
suppliers located at Hyderabad. ABPL sells its final products to
the customers located at Telangana, Karnataka, Kerala, Delhi and
Maharashtra.
ARCOTECH LIMITED: CARE Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Arcotech
Limited (Arcotech) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 266.81 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Long Term/ 205.00 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 Limited (CARE Ratings) had, vide its press release
dated October 5, 2017, placed the rating(s) of Arcotech under the
'issuer non-cooperating' category as Arcotech had failed to provide
information for monitoring of the rating. Arcotech continues to be
non-cooperative despite repeated requests for submission of
information through e-mail communications December 26, 2022,
January 5, 2023 and January 15, 2023 among others and numerous
phone calls.
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'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).
Arcotech was incorporated as Shri Krishna Strips Ltd in 1984 and
started its operations with a unit at New Delhi to manufacture cold
rolled copper/brass strips & foils with a capacity of 1,666 MT. In
2006, the company relocated its unit to Bawal, Haryana and its
shares were listed on the Bombay Stock Exchange Ltd (NSE & BSE)
with effect from December 28, 2007. The company undertakes
manufacturing of brass & copper foils, strips and sheets including
radiator brass foils and radiator copper foils with a capacity of
24,000 MTPA as on March 31, 2017 at its facility in Bawal
(Haryana).
BIHAR STATE: Liquidation Process Case Summary
---------------------------------------------
Debtor: Bihar State Construction Corporation Limited
Khwaja Imali Anishabad Patna Bihar 800002
Liquidation Commencement Date: April 18, 2023
Court: National Company Law Tribunal Kolkata Bench
Liquidator: CA Nitesh Kumar More
18 Rabindra Sarani, Gate No 1, Room No 701,
Kolkata:700001
Email: nmore2091@gmail.com
Email: bsccl.cirp@gmail.com
Last date for
submission of claims: May 18, 2023
D D INDUSTRIES: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: D.D. Industries Ltd (Having Division known as D.D. Motors)
B-84, Mayapuri Industrial Area Phase-I,
New Delhi - 110064
Insolvency Commencement Date: April 12, 2023
Estimated date of closure of
insolvency resolution process: October 9, 2023
Court: National Company Law Tribunal, New Delhi Bench
Insolvency
Professional: Manoj Kumar Anand
2, Community Centre, 3rd Floor,
(Near PVR/McDonald),
Naraina, New Delhi-110028
Email: anandmanoja@gmail.com
Email: ddindustriescirp@gmail.com
Last date for
submission of claims: April 28, 2023
DK INFRASTRUCTURE: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: DK Infrastructure Private Limited
Flat No. 103 Floor No:1,
Deo Enclave CHSL Chitrakar Ketkar Marg,
Near Gujrati Society, Vile Parle (E)
Mumbai - 400057
Insolvency Commencement Date: April 17, 2023
Estimated date of closure of
insolvency resolution process: October 14, 2023
Court: National Company Law Tribunal, Mumbai Bench-V
Insolvency
Professional: Jayanti Lal Jain
708, Raheja Centre, Nariman Point,
Mumbai- 400021, Maharashtra
Email: cirpdkinfra@gmail.com
Last date for
submission of claims: May 1, 2023
GREENSTONE GRANITO: CARE Assigns B Rating to INR31.65cr LT Loan
---------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Greenstone Granito Private Limited (GGPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 31.65 CARE B; Stable Assigned
Facilities
Long Term/ 15.00 CARE B; Stable CARE A4
Short Term Assigned
Bank Facilities
Short Term Bank 4.00 CARE B; Stable Assigned
Facilities
Rationale and key rating drivers
The ratings assigned to the bank facilities of GGPL remained
constrained mainly on account of small and declining scale of
operations with operational and cash losses booked, leveraged
solvency position and stretched liquidity during FY23 (Provisional,
refers to period April 1 to March 31). The above ratings further
remained constrained due to presence of GGPL in a highly
competitive ceramic industry, fortunes linked to demand from
cyclical real estate sector along with susceptibility of profit
margins to volatility in raw material and fuel costs along with
currency fluctuation risk.
The above weaknesses however derive comfort from experienced
management as well as presence in cluster and easy availability
of raw materials.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Increase in scale of operations marked by Total Operating Income
(TOI) by 50% with reporting PAT margin above 2%
* Improvement in working capital cycle below 100 days
* Improvement in capital structure led by overall gearing of 1.5
times or lower on sustained basis
Negative factors
* Decline in TOI by 20% or more with cash losses on sustained
basis
* Further elongation in working capital cycle beyond 300 days.
Analytical approach: Standalone
Outlook: Stable
Stable outlook reflects that operational and financial performance
of the entity is expected to stabilize going forward with
normalized ceramic industry scenario along with moderation in gas
prices at ceramic cluster of Morbi, Gujarat.
Detailed description of the key rating drivers:
Key weaknesses
* Small scale of operations along with operating losses during
FY23: During FY23, in the betterment of the Ceramic trade, the
entire ceramic cluster of Morbi, Gujarat has decided to fully
shutdown for the month of August 2022. Due to demand supply
mismatch as well as sharp increase in the prices of natural gas,
GGPL has halted the production activities for 4-5 months during
FY23 which led to significant decline in the scale of operations as
marked by TOI by ~47% in FY23. TOI remained at INR49.86 crore in
FY23 as against INR93.29 crore in FY22. The profitability also
deteriorated significantly and remained weak as marked by
operational losses booked of INR8.36 crore in FY23 as against
operational profit of INR4.66 crore in FY22 due to substantial
increase in the cost of key raw material consumed. Consequently,
entity reported net losses of INR17.77 crore in FY23 as against
INR7.42 crore in FY22. GGPL had reported cash losses of INR12.62
crore in FY23 as against cash profit of INR0.54 crore in FY22.
* Leveraged solvency position: As on March 31, 2023, the capital
structure of the entity remained highly leveraged marked by
negative tangible net worth of INR0.76 crore as against high debt
level of INR61.65 crore. Further, the debt coverage indicators also
remained weak as marked by operational loss of INR8.36 crore in
FY23.
* Fortunes linked to demand from cyclical real estate sector: The
demand for the tiles comes from the real estate industry, which, in
India is highly fragmented and cyclical. The real estate industry
is also highly sensitive to interest rates and liquidity position
in the market. Thus, any negative impact on the real estate
industry will adversely affect the prospects of ceramic tiles
industry as well as the company. However, due to anti-China
movement and faster than expected recovery of demand in the
domestic market, scaling up of operations by ceramic tile entities
has been faster than envisaged. The sustainability of this growth,
domestically as well as export remains a key monitorable going
forward.
* Susceptibility of profit margins to volatility in raw material
and fuel costs along with currency fluctuation risk Prices of raw
material i.e. clay and feldspar is market driven and puts pressure
on the margins of tile manufacturers in case of volatility into the
same. Another major cost component is fuel expense in the gas form
which is to fire the furnace. The profitability of GGPL is also
exposed to volatile liquified natural gas (LNG) prices, mainly on
account of its linkages with the international demand-supply of
natural gas along with propene prices. Hence any adverse movement
in material and fuel prices shall impact the profitability of the
company.
Key strengths
* Experienced management: GGPL is promoted by 3 promoters viz. Mr.
Jitendra Trasadiya, Mr. Ramkrishna Khambhaliya and Mr. Rajeshkumar
Kanetiya. The promoters hold more than decade of experience in
ceramic industry through their association with GGPL since
inception along with other entities in Morbi engaged in ceramic
industry. Mr. Jitendra Trasadiya holds experience of around decade
through his earlier work experience as an employee in various
entities in Morbi cluster. GGPL is being benefitted through his
business relations established during earlier work experience. He
is looking after overall operations of the business and other
directors are assisting him in overall administration and
management. Further, GGPL also have experienced and qualified staff
to support routine business operations.
* Presence in cluster and easy availability of raw materials:
The manufacturing facility of GGPL is located in Morbi-Gujarat
which is India's largest cluster of ceramic tile makers.
Furthermore, Raw materials and fuel are the two major cost
components (~55-80%) in tiles production. The major raw materials
include raw quartz, sand, titanium oxide, polyester resin,
chemicals, pigments etc. GGPL has an added advantage of easy
availability of raw materials owing to its presence in ceramic
cluster. It also enjoys benefits in terms of road and rail
connectivity as well as easy availability of labour.
Liquidity: Stretched
The liquidity position of GGPL remained stretched as marked by cash
losses of INR12.62 crore in FY23 as against debt repayment
obligations of INR6.84 crore arising in FY24 necessitating infusion
of funds by promoters. Further, current ratio remained weak at
0.75x as on March 31, 2023 as against 1.04x as on March 31, 2022
mainly due to decrease in the amount of inventories and trade
receivables on the back of decline in scale of operations. Cash and
Bank balance remained modest at INR0.11 crore as on March 31, 2023.
Cash flow from operations improved from INR1.85 crore in FY22 to
INR4.17 crore in FY23 mainly due to realization from inventories
and trade receivables. The operating cycle of the entity
deteriorated and remained highly elongated at 133 days in FY23 as
against 91 days in FY22 mainly due to averaging effect.
Morbi (Gujarat) based Greenstone Granito Private Limited (GGPL) is
incorporated in January 2016 by Mr. Jitendra Trasadiya, Mr.
Ramkrishna Khambhaliya and Mr. Rajesh Kanetiya. The entity is into
manufacturing of Porcelain Tiles and Glazed Vitrified Tiles (PGVT &
GVT) of 600*600 mm and 600*1200 mm size under the brand name of
'Greenstone' with installed capacity of 1,37,700 Metric Tons Per
Annum (MTPA) at its factory located at Morbi, Gujarat. The entity
had commenced commercial operations from May, 2019.
GUINESS SECURITIES: CRISIL Cuts Long/Short Term Loan Ratings to D
-----------------------------------------------------------------
CRISIL Ratings has revised the ratings on certain bank facilities
of Guiness Securities Limited (Guiness Securities), as:
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Rating - CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B-/Stable ISSUER NOT
COOPERATING')
Short Term Rating - CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL A4 ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with Guiness
Securities for obtaining information through letters and emails
dated June 30, 2022 and August 30, 2022 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such
non-co-operation by a rated entity may be a result of deterioration
in its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of Guiness Securities, which
restricts CRISIL Ratings' ability to take a forward-looking view on
the entity's credit quality. CRISIL Ratings believes that rating
action on Guiness Securities is consistent with 'Assessing
Information Adequacy Risk'.
CRISIL Ratings has downgraded its ratings on the bank facilities of
Guiness Securities to 'CRISIL D/CRISIL D Issuer Not Cooperating'
from 'CRISIL B-/Stable/CRISIL A4 Issuer Not Cooperating' as the
entity has delayed servicing its debt obligation, as per publicly
available information.
Guiness Securities, formed in 1986 and owned by Mr Kamal Kumar
Kothari and family, undertakes broking activities in both cash and
futures, and options segments. It was a non-banking financial
company, Guiness Properties and Holdings, before it started the
broking business in 2001. The company is a member of the Bombay
Stock Exchange and National Stock Exchange and a depository
participant with the National Securities Depository Ltd and Central
Depository Services (India) Ltd. Besides providing cash and
derivatives trading services, Guiness Securities offers services
such as dematerialisation of shares, mutual funds, initial public
offerings, and insurance. As on March 31, 2016, the company had 7
branches and 40 sub brokers.
HANSON AGRO: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Hanson Agro Limited
Plot No. 7 Wariana Industriai Complex
Leather Complex Jalandlrar Pb 144004
Insolvency Commencement Date: April 20, 2023
Estimated date of closure of
insolvency resolution process: October 17, 2023
Court: National Company Law Tribunal, Chandigarh Bench
Insolvency
Professional: Mohit Chawla
2935-36. Level-I, Sector 22-C
Chandigarh- 160022
Email: ipservices@embeegroup.in
Unit No. A-204, Second Floor,
Elante Offices, Plot No. 178-178A,
Industrial Area Phase-I,
Chandigarh-16002
Email: ip.hansonagro@gmail.com
Last date for
submission of claims: May 4, 2023
HANSON PETRO: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Hanson Petro Private Limited
77 4-Urban Estate Phase-1 Jalandhar, Punjab - 144444
Insolvency Commencement Date: April 20, 2023
Estimated date of closure of
insolvency resolution process: October 17, 2023
Court: National Company Law Tribunal, Chandigarh Bench
Insolvency
Professional: Mohit Chawla
2935-36. Level-I, Sector 22-C
Chandigarh- 160022
Email : ipservices@embeegroup.in
Unit No. A-204, Second Floor, Elante Offices,
Plot No. 178-178A, Industrial Area Phase-I,
Chandigarh-16002
Email: ip.hansonpetro@gmail.com
Last date for
submission of claims: May 4, 2023
IBAHN ILLUMINATION : Voluntary Liquidation Process Case Summary
---------------------------------------------------------------
Debtor: Ibahn Illumination Private Limited
T1, Okhla India. Area Phase-II,
Near H. No-T-2 New Delhi 110020 India
Liquidation Commencement Date: April 20, 2023
Court: National Company Law Tribunal New Delhi Bench
Liquidator: Adarsh Sharma
J-6a, Kailash Colony, New Delhi-110048
Tel No: +91 9810074285
Email: adarsh@adarshca.com
Email: volliq.iipl@gmail.com
Last date for
submission of claims: May 19, 2023
INDO PRODUCTS: CARE Keeps B- Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Indo
Products (IP) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 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 May 3, 2022,
placed the rating(s) of IP under the 'issuer non-cooperating'
category as IP 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. IP continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 19, 2023, March 29, 2023, April 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).
Indo Products was incorporated in 1979 as a partnership concern and
was engaged in the manufacturing of steel products. The
manufacturing was however seized in 1994 and the firm was
reconstituted as a proprietorship concern with Mr Varinder Gupta as
the sole proprietor. It currently engages in trading and
distribution of steel products. The firm is an authorized dealer of
JSW Steel Limited, since 2009, and is engaged in the distribution
of iron and steel products (HR Sheets, CR sheets, rounds, etc), for
the company. 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), with whom it is associated since
2013. The products find application in bicycle parts, automobile
components, fasteners etc.
INNOVATIVE IDEALS: CARE Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Innovative
Ideals and Services India Limited (II&SL) continues to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 0.30 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 6, 2022,
placed the rating of II&SL under the 'issuer not-cooperating'
category as II&SL had failed to provide information for monitoring
of the rating. II&SL continues to be non-cooperative despite
repeated requests for submission of information through phone calls
and emails dated March 6, 2023, March 14, 2023, and March 24, 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 ratings.
Analytical approach: Standalone
Detailed description of the key rating drivers:
At the time of last rating on April 6, 2022, the following were the
rating strengths and weaknesses (updated for the information
available from BSE).
Key weaknesses
* Ongoing delays in debt servicing: Latest banker due diligence
could not be conducted to assess the debt servicing ability of the
company. However latest auditor report for the year ended March 31,
2022 suggests there are no defaults in debt servicing by the
company.
* Stretched liquidity position: The Company has stretched liquidity
position marked by negative cash accruals in FY22 and funds blocked
in inventory and debtors due to non-execution of orders owing to
overall slowdown in industry.
Innovative Ideals and Services (India) Limited (II&SL), is
providing services of system integration for security, safety and
building automation an installation of various electronic systems.
II&SL provides range of services like video door phone, audio door
phone, access controls, home automation systems, intrusion alarm
system, CCTV systems, fire alarm systems and telecom products.
II&SL provides video door phones under its own brand name 'Onyx' &
'Inok'. Further, home automation solutions under the brand name of
'eHomes'. Further, II&SL had developed small product namely
'Savior' with a view of safety and security of senior citizen and
children which can be wore as a wrist watch, ARMHer which is mainly
for safety for women segment (With press of single button,
communication reaches to all emergency contact details with GPS
location of the person) and also provides mobile phones under
'Inoyo brand and cookware under the name of Baro Cook.
JABALPUR MSW: CARE Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Jabalpur
MSW Private Limited (JMPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 117.36 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 April 28, 2022,
placed the rating(s) of JMPL under the 'issuer non-cooperating'
category as JMPL 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. JMPL 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).
Jabalpur MSW Private Limited (JMPL) is a special purpose vehicle
(SPV) promoted by Essel Infraprojects Limited (EIL) and Arrow
Ecology & Engineering Overseas (1999) Ltd. JMPL was incorporated on
January 23, 2013 for development of a processing plant for
conversion of municipal solid waste (MSW) into energy. The company
is a direct subsidiary of EIL which holds 90% stake in the company.
JMPL has set up a waste-to-energy plant of 580 TPD capacity, using
incineration-based technology of Hitachi Zosen Group at village
Kathonda, Jabalpur on Design, Build, Own, Operate and Transfer
(DBOOT) basis.
JSW STEEL: Fitch Affirms LongTerm IDR at 'BB', Outlook Stable
-------------------------------------------------------------
Fitch Ratings has affirmed India-based JSW Steel Limited's (JSWS)
Long-Term Issuer Default Rating (IDR) at 'BB' with a Stable
Outlook. The agency has also affirmed the rating on the outstanding
bonds of JSWS and its subsidiary Periama Holdings, LLC, which are
guaranteed by JSWS, at 'BB'.
The affirmation is based on its expectations of a significant
reduction in JSWS's total debt to EBITDA leverage, from around 6.0x
in the financial year ended 31 March 2023 (FY23) to below 3.5 by
FY25, a level Fitch thinks is consistent with its rating.
JSWS's margins and EBITDA fell sharply in FY23, reflecting global
steel industry weakness and the impact of a steel export duty
imposed by India for around six months. Fitch expects margins to
improve, which, along with sustained sales volume growth, should
drive EBITDA growth and deleveraging, despite higher capex. JSWS's
business profile remains robust, supported by its low-cost
position, a majority share of value-added and special products in
sales, and substantial scale.
Its forecast implies that JSWS will maintain leverage well within
its own target of 2.75x net debt/EBITDA. However, the rating
headroom is limited and Fitch thinks a higher-than-expected
spending on capacity growth remains a key risk.
KEY RATING DRIVERS
Better Margins from FY24: JSWS's EBITDA margin for standalone
operations, which accounted for over 80% of consolidated EBITDA in
9MFY23, was around INR7,000 per tonne (t) (USD88/t) after adjusting
for forex losses. This was sharply lower than the average of around
IN9,600/t (USD138/t) over FY17-FY21, excluding the exceptionally
profitable FY22. In addition to the global fall in steel prices,
Indian steelmakers were affected by the 15% export duty on several
steel products from 22 May 2022.
Fitch assumes JSWS's standalone EBITDA margin, in US dollar terms,
will recover by FY25 to the FY17-FY21 average, helped by lower raw
material costs, a better demand-supply balance for the industry and
the rollback of the export duty in November 2022.
Sustained Volume Growth: Fitch expects JSWS's sales volume from its
Indian units, comprising standalone operations, subsidiary Bhushan
Power and Steel Limited (BPSL) and jointly controlled JSW Ispat
Special Products Ltd (JISPL), to jump by 13% in FY23, aided by the
ramp-up of capacity added at the Dolvi plant in FY22 and healthy
domestic demand growth. Fitch expects JSWS's sales volume from
Indian operations to rise by 10% in FY24, driven by healthy
domestic GDP growth and a better outlook for exports following the
rollback of the export duty, and continue growing at a similar rate
thereafter.
Subsidiary Performance Should Rebound: JSWS's two key subsidiaries
- for coated products in India and for steelmaking in the US -
incurred significant inventory and EBITDA losses in FY23. BPSL,
which registered better EBITDA margins than the standalone
operations in FY22, saw weaker profitability in 9MFY23 due to heavy
rainfall in 2QFY23 that hit access to raw materials. Fitch expects
performance at these subsidiaries to rebound in FY24, helped by
better industry conditions. Operations in Italy should also benefit
from rail orders received from domestic and international
customers.
Cost-Efficient Operations: JSWS's Indian operations benefit from
high yields and low labour costs. Its key plants at Vijayanagar,
Dolvi and in Odisha state, excluding JISPL, with a combined
capacity of around 26 million tonnes per annum (mtpa) constituting
around 90% of consolidated capacity, are in the first half of
research group CRU's global crude steel site cost curve for 2023.
The robust cost positions of these assets result in JSWS's overall
weighted-average cost position being in the first half of the
global cost curve, despite higher costs associated with
manufacturing units in US and Italy.
Limited Raw-Material Production Benefit: JSWS has iron ore mines in
Odisha and Karnataka states in India and the mines supplied 43% of
JSWS's iron ore requirement in FY22. JSWS's captive iron ore
operations result in improved supply certainty and lower logistics
costs. However, the cost of production for the mines, including
royalties, is close to Indian benchmark prices due to the royalty
structure that links it to domestic iron ore prices.
JSWS has also been declared the preferred bidder by the government
for certain coking coal assets. Output from these blocks should
reduce JSWS's reliance on external raw-material purchases in the
next two to three years, but the cost benefit is likely to be
limited.
Increase in Capex Likely: Fitch expects JSWS's capex to increase
from FY24, from INR150 billion in FY23. By FY24, JSWS aims to add
5mtpa through a new blast furnace and 1.5mtpa via debottlenecking
at its Vijayanagar plant, and 1.5mtpa at BPSL. JSWS also intends to
invest in mining equipment and facilities in Odisha, and upgrade
its operations in the US. Beyond FY24, JSWS is likely to further
expand steelmaking capacity, which may include greenfield projects,
and continue investing in downstream facilities for value-added
products.
Lower Leverage, Negative FCF: Fitch estimates JSWS's total debt to
EBITDA leverage will average around 3.3x over FY24-FY26, sharply
lower than in FY23, due to higher EBITDA. Fitch estimates free cash
flow (FCF) will remain negative over FY24-FY26, with robust
operating cash flows being offset by its large capex. However, the
bulk of JSWS's capex is for capacity enhancement, which should
gradually improve its business profile. Its estimates incorporate
the planned merger of JISPL with JSWS, likely to be completed after
requisite approvals in the next few months, with effect from the
start of FY23.
DERIVATION SUMMARY
The ratings on Tata Steel Limited (TSL, BB+/Positive), JSWS' close
Indian peer, incorporate a one-notch uplift from its Standalone
Credit Profile (SCP) of 'bb' due to potential support from Tata
Group. TSL's SCP factors in robust operations in India, which have
better vertical integration and a higher EBITDA margin than that of
JSWS, counterbalanced by significant exposure to structural
weaknesses of higher costs and weak demand growth in Europe. Fitch
estimates that TSL's gross debt/EBITDA leverage in FY23 was lower
than JSWS's, at around 3.0x, and is on track to decline below 2.5x
over the next two years. The likelihood of a better leverage
profile than JSWS underpins its Positive Outlook on TSL.
JSWS can also be compared with similarly rated global peers United
States Steel Corporation (U.S. Steel, BB/Stable) and Usinas
Siderurgicas de Minas Gerais S.A. (Usiminas, BB/Stable).
U. S. Steel is an integrated producer of flat-rolled steel and
tubular products with operations in North America and Europe. U.S.
Steel has a weaker cost position than JSWS, in the third quartile
of the global cost curve. However, U.S. Steel is shifting focus to
flexible and lower-cost, more-efficient mini mills which Fitch
believes will improve its overall cost position and reduce earnings
volatility. U.S. Steel also has better raw material
self-sufficiency and its EBITDA leverage in 2022 is significantly
lower than its expectation for JSWS in FY23. Fitch thinks that
JSWS's stronger business profile, based on a better cost position,
balances its weaker financial profile with higher leverage.
Brazilian steelmaker Usiminas is the largest domestic supplier of
cold rolled and electro-galvanized steel products. The company has
a production capacity of 5mtpa of crude steel and12mtpa of iron
ore. Compared with JSWS, Usiminas has a weaker cost position in
steel in the third quartile of the global cost curve. However,
Fitch thinks its business profile benefits from significant iron
ore output, a portion of which can be sold externally to boost cash
flows. In addition, Usiminas's 2021 EBITDA leverage was
significantly lower than JSWS's in FY22.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
- Standalone sales volume, excluding output from 5mtpa capacity
expansion at Vijayanagar to be undertaken through a subsidiary, to
increase by CAGR of 7% over FY23-FY26;
- Annual standalone EBITDA per tonne of INR7,500 in FY23, INR10,700
in FY24 and INR11,000 thereafter;
- Annual EBITDA contribution from subsidiaries and JISPL to
increase to over INR100 billion by FY25, from INR25 billion in
FY23;
- Average annual consolidated capex of around INR220 billion over
FY24-FY26;
- Average annual dividend outflow of around INR30 billion over
FY24-FY26.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- EBITDA leverage (total debt to EBITDA) below 2.5x for a sustained
period.
- Sustained neutral to positive FCF.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- EBITDA leverage above 3.5x for a sustained period.
LIQUIDITY AND DEBT STRUCTURE
Manageable Liquidity: JSWS reported consolidated cash and cash
equivalents of INR112 billion at 31 December 2022. It had
short-term working-capital debt and acceptances of around INR210
billion and long-term debt maturities (including long-term customer
advances) of around INR170 billion and INR120 billion in FY24 and
FY25, respectively.
Fitch expects JSWS to roll over its short-term debt and
acceptances, as is usually the case, supported by its healthy
business profile and improved industry conditions. Fitch expects
JSWS to refinance a significant portion of its long-term debt
maturities over the next two years, relying on its robust access to
diverse financial sources, such as domestic and international banks
and public markets. However, Fitch thinks the company should be
able to meet its repayment obligations by cutting discretionary
capex and by using cash freed from the drawdown of available capex
and working-capital facilities, should market conditions hinder
refinancing efforts.
JSWS had undrawn capex facilities, fund- and non-fund-based, of
around INR63 billion and working capital lines of around INR175
billion at 31 December 2022. Fitch estimates annual maintenance
capex requirements to be around INR40 billion.
ISSUER PROFILE
JSWS is the leading steelmaker in India, with a primary steelmaking
capacity of 28 mtpa in the country, including JISPL, and a
flat-products focused portfolio. The company also has smaller
assets in the US and Italy.
SUMMARY OF FINANCIAL ADJUSTMENTS
Material Financial Adjustments Include:
- Interest on lease liabilities (FY22: INR2.6 billion) and
depreciation of right of use assets (FY22: INR3.5 billion) have
been treated as lease expenses and deducted from EBITDA. Reported
lease liabilities have not been treated as debt.
- To account for the extension in trade payable days caused by the
use of acceptances, 57% of the total outstanding acceptance amount
(FY22: INR94.3 billion) is treated as debt and deducted from trade
payables.
- Outstanding payment (FY22: INR20.3 billion) by Duferco S.A. under
a five-year advance payment and supply agreement for supply of
steel products has been treated as debt.
- Unamortised upfront fees on borrowing (FY22: INR5.3 billion) have
been added back to debt.
- EBITDA has been adjusted for a) forex losses (FY22: INR4.7
billion), b) export obligation deferred income amortisation (FY22:
5.3 billion), c) loss on sale of property, plant and equipment
(FY22: INR1.1 billion) and d) share-based payment expense (FY22:
INR1.5 billion). EBITDA for leverage calculation has been adjusted
for dividends received (FY22: INR250 million) and net profit
attributable to minority interests (FY22: INR2.7 billion).
- Guarantees (FY22: INR340 million) have been treated as
off-balance sheet debt.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
JSW Steel Limited LT IDR BB Affirmed BB
senior
unsecured LT BB Affirmed BB
senior
unsecured LT BB Affirmed RR4 BB
Periama
Holdings, LLC
senior
unsecured LT BB Affirmed RR4 BB
KAISHA PACKWELL: Voluntary Liquidation Process Case Summary
-----------------------------------------------------------
Debtor: Kaisha Packwell Private Limited
(Fomerly known as Secureplast Private Limited)
H. No. 2067/107, Flat No. 503
Dunes CHS Ltd. Dunetha,
Nani Daman, Daman, and Diu (DD)-396210, India
Liquidation Commencement Date: March 29, 2023
Court: National Company Law Tribunal Pune Bench
Liquidator: Shashikant Shravan Dhamne,
10, Shreeban, Opp. Police Ground,
F.C Road, Shivajinagar,
Pune – 411016, Maharashtra,
Email: ssdhamne@yahoo.co.in
Tel No: 020-25665551
Last date for
submission of claims: April 28, 2023
MANUGRAPH INDIA: CRISIL Moves B- Debt Rating to Not Cooperating
---------------------------------------------------------------
CRISIL Ratings has migrated the ratings on bank facilities of
Manugraph India Limited (Manugraph) to 'CRISIL B-/Stable/CRISIL A4
Issuer not cooperating'. Also, CRISIL Ratings has withdrawn the
rating on Commercial Paper upon request from the company as the
same is not outstanding as per the audited financial statements of
fiscal 2022.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Rating - CRISIL B-/Stable (ISSUER NOT
COOPERATING; Migrated from
'CRISIL B-/Stable')
Commercial Paper 10 CRISIL A4 (ISSUER NOT
COOPERATING; Migrated from
'CRISIL A4'; Rating
Withdrawn)
CRISIL Ratings has been consistently following up with Manugraph
for obtaining information through letters and emails dated April 4,
2023, April 5, 2023, April 6, 2023, April 12, 2023, April 13, 2023,
April 17, 2023, April 18, 2023, and April 24, 2023 apart from
telephone calls. However, the issuer has remained non-cooperative.
Investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such
non-cooperation by a rated entity may be a result of deterioration
in its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of Manugraph, which restricts
CRISIL Rating's ability to take a forward-looking view on the
entity's credit quality. CRISIL Ratings believes that rating action
Manugraph is consistent with 'Assessing Information Adequacy
Risk'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL Ratings has migrated the ratings on
bank facilities of Manugraph to 'CRISIL B-/Stable/CRISIL A4 Issuer
not cooperating'. Also, CRISIL Ratings has withdrawn the rating on
Commercial Paper upon request from the company as the same is not
outstanding as per the audited financial statements of fiscal
2022.
Analytical Approach
For arriving at its ratings, CRISIL Ratings has taken a
consolidated view of Manugraph and its wholly-owned subsidiary,
i.e., Manugraph Americas Inc.
Incorporated in 1971 and promoted by Mr Sanat Shah, Manugraph
manufactures single- and double-width web offset printing machines.
The manufacturing facility is in Kolhapur, Maharashtra. The company
has been recognized as an R&D house by the Department of Scientific
and Industrial Research. Its strong R&D capability has facilitated
the development of products such as the Smartline 4X1 machine
(double-width) with a speed of 70,000 copies per hour (cph),
Dreamline 4X1 machine (double-width) with a speed of 50,000 cph,
and Ecoline 2X1 machine (single width) with a speed of 25,000 cph.
In fiscal 2018, the company entered the plastic packing industry by
manufacturing flexo-machines, used for printing food packaging. It
has partnered with Carraro Srl, Italy, and delivered its first
order in March 2018.
Revenue and net loss were INR45 crore and INR9 crore, respectively,
in the first nine months of fiscal 2023, as against INR34 crore and
INR12 crore, respectively, in the corresponding period of the
previous fiscal.
NACHIAPPAN K: CARE Keeps B- Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Nachiappan.
K (NK) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.75 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 April 26, 2022,
placed the rating(s) of NK under the 'issuer non-cooperating'
category as NK 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. NK continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 12, 2023, March 22, 2023, April 1, 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).
K Nachiappan is a proprietor of M/s. E.K.N. Poultry Farm (EKNPF).
He established EKNPF in the year 1984, in Namakkal District which
is popular for poultry activities in south India. The firm engaged
in farming egg, cull birds and manure. Currently the firm has 60000
chicks, 60000 grower and 280000-layer birds. The firm has the
capacity to produce 224000 eggs per day.
NASIR ILAHI: CARE Keeps C Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Nasir Ilahi
& Co. (NIC) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated May 4, 2022,
placed the rating(s) of NIC under the 'issuer non-cooperating'
category as NIC 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. NIC continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 20, 2023, March 30, 2023, April 9, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Nasir Ilahi & Co. (NIC) was established on June 2017 as a
partnership firm by Mr. Nasir Ilahi and Mr. Wasim Ilahi, Mr. Dinesh
Singh and Mr. Sukhchain Singh. Firm is engaged in chicken egg
hatchery business and its hatchery farm is located in Meerut, Uttar
Pradesh. Firm has proposed to sell chicks to bird growers.
NORTH WESTERN: CRISIL Moves B- Debt Ratings to Not Cooperating
--------------------------------------------------------------
CRISIL Ratings has migrated the ratings on certain bank facilities
of North Western Karnataka Road Transport Corporation (NWKRTC),
as:
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 100 CRISIL B-/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
Proposed Long Term 12.89 CRISIL B-/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
Proposed Long Term 11.14 CRISIL B-/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
Proposed Long Term 49.93 CRISIL B-/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
Term Loan 54 CRISIL B-/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Term Loan 47.04 CRISIL B-/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with NWKRTC for
obtaining information through letters and emails dated March 6,
2023; March 13, 2023; March 28, 2023; April 12, 2023; April 13,
2023; April 18, 2023 and April 24, 2023 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such
non-co-operation by a rated entity may be a result of deterioration
in its credit risk profile. As such these ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of NWKRTC, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
NWKRTC is consistent with 'Assessing Information Adequacy Risk'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL Ratings has migrated the rating on
bank facilities of NWKRTC to 'CRISIL B-/Stable Issuer Not
Cooperating' from 'CRISIL B-/Stable'.
NWKRTC was set up in 1997, under provision of the Road Transport
Corporation Act, 1950, following the bifurcation of the Karnataka
State Road Transport Corporation. NWKRTC is wholly owned by GoK.
The sole purpose of its creation is to provide extensive bus
transport services in North-West Karnataka, including to remote and
non-profitable locations across the region.
Status of non cooperation with previous CRA
NWKRTC has not cooperated with ICRA Ltd (ICRA), which has
classified the company as non-cooperative through a release dated
August 23, 2022. The reason provided by ICRA is non-furnishing of
information for monitoring the ratings.
PADAM MOTORS: CARE Lowers Rating on INR15cr ST Loan to D
--------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Padam Motors Private Limited (PMPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.93 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE B
Short Term Bank 15.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
Under ISSUER NOT COOPERATING
Category and Revised from
CARE A4
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated May 12, 2022,
placed the rating(s) of PMPL under the 'issuer non-cooperating'
category as PMPL 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. PMPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 28, 2023, April 7, 2023, April 17, 2023 and May 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 bank facilities of PMPL have been revised
on account of non-availability of requisite information. The rating
revision also considers ongoing delays in debt servicing recognised
from publicly available information. i. e. CIBIL check.
Padam Motors Private Limited (PMPL) was incorporated in May 2004
and operates as an authorized dealer for the sale of passenger and
commercial vehicles of the Ashok Leyland, Tata and Renault.
POOJA MINI: CARE Keeps B- Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Pooja Mini
Modern Rice Mill (PMMRM) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.86 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 0.42 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 May 4, 2022,
placed the rating(s) of PMMRM under the 'issuer non-cooperating'
category as PMMRM 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. PMMRM continues to
be noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 20, 2023, March 30, 2023, April 9, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Kanpur (Uttar Pradesh) based Pooja Mini Modern Rice Mill (PMMRM)
was formed in 2000 as a proprietorship concern by Mr. Mewa Lal
Rathore. However, from October, 2017, the constitution of the firm
was changed to partnership concern among four partners viz. Mr.
Mewa Lal Rathore, Mr. Amar Singh Rathore, Mrs. Pooja Rathore and
Mrs. Sharda Devi Rathore and share equal and profit loss. PMRM is
mainly engaged in the processing of arwa rice and steamed rice and
is also engaged in trading of agricultural commodities such as
makka and wheat.
PRAKASH OFFSET: CRISIL Lowers Rating on INR14.5cr Term Loan to B+
-----------------------------------------------------------------
CRISIL Ratings has downgraded its rating on the bank facilities of
Prakash Offset Printers (POP) to 'CRISIL B+/Stable' from 'CRISIL
BB-/Stable'. The rating action reflects significant weakening of
the liquidity profile of the firm.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.5 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
Cash Term Loan 14.5 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
Proposed Fund- 2 CRISIL B+/Stable (Downgraded
Based Bank Limits from 'CRISIL BB-/Stable')
The rating continues to reflect POP's extensive experience of its
partners and its moderate financial risk profile. These strengths
are partially offset by working capital intensity in operations and
modest scale of operations risk of customer concentration.
Key Rating Drivers & Detailed Description
Strengths:
* Extensive industry experience of the partners: The partners have
an experience of over more than 35 years in printing industry. This
has given them an understanding of the dynamics of the market and
enabled them to establish relationships with suppliers and
customers. CRISIL believes that the firm shall benefit from the
extensive industry experience of its partners over the medium
term.
* Moderate financial risk profile: POP has a moderate financial
risk profile, supported by its moderate debt protection metrics.
The interest coverage and net cash accrual to total debt ratio is
at around 12.59 times and 0.13 times respectively, supported by
healthy operating profitability of around 10-30 percent, over the
last three years ended March 2022. However, gearing is at 2.87
times as on March 31, 2022 due to high reliance on debt to fund
working capital requirements and also steady withdrawals by
partners
Weakness:
* Working capital intensive operations: Gross current assets is at
275 days as on March 31, 2022. Its large working capital
requirements arise from its high debtor and inventory levels. It is
required to extend long credit period. Furthermore, due to its
business need, it hold large work in process and inventory.
* Modest scale amid risk of customer concentration in revenue:
Large customer (Funskool Ltd) account for more than 70% of total
sales. Consequently, scale has remained small with revenue of
INR21.96 crore in fiscal 2022. Though strong relationships, the
business risk profile of POP will continue to remain vulnerable to
any changes in the business strategies of Funskool Ltd.
Liquidity: Stretched
Bank limit utilisation is high at around 99.5 percent for the past
twelve months ended March 2023. Cash accrual are expected to be
over Rs.4.5 crores which are sufficient/insufficient against term
debt obligation of Rs3-4 crores over the medium term.
Current ratio is low at 1.02 times on March 31, 2022. The promoters
are likely to extend support in the form of equity and unsecured
loans to meet its working capital requirements and repayment
obligations.
Outlook Stable
CRISIL Ratings believe POP will continue to benefit from the
extensive experience of its partners, and established relationships
with clients.
Rating Sensitivity factors
Upward factor
* Sustained improvement in scale of operation by 20% and sustenance
of operating margin, leading to higher cash accruals
* Improvement in working capital cycle.
Downward Factor
* Deterioration in gearing to more than 4 times
* Fall in debt service coverage ratio (DSCR) to below 1.1 times
over the medium term
* Any large debt funded capital expenditure, adversely impacting
the financial risk profile, particularly liquidity
POP was established in 1982 as partnership firm. It is engaged in
providing printing services including offset printing (commercial
printing). Its printing facility located in Mangalore, Karnataka
and owned by Mr. P. Raghuveer Nayak, Mrs Pallavi R Nayak, Mr. Anand
S Prabhu, Mrs Vasanthi Prabhu and Mrs. Savithri R Prabhu.
RIDDHI SIDDHI: CRISIL Withdraws B+ Debt Rating on INR50cr Loan
--------------------------------------------------------------
Due to inadequate information, CRISIL Ratings, in line with SEBI
guidelines, had migrated the rating of Shree Riddhi Siddhi
Buildwell Limited (SRSBL) to 'CRISIL B+/Stable/Issuer not
cooperating'. CRISIL Ratings has withdrawn its rating on bank
facility of SRSBL following a request from the company and on
receipt of a 'no dues certificate' from the banker. Consequently,
CRISIL Ratings is migrating the ratings on bank facilities of SRSBL
from 'CRISIL B+/Stable/Issuer Not Cooperating' to 'CRISIL
B+/Stable'. The rating action is in line with CRISIL Ratings'
policy on withdrawal of bank loan ratings
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 50 CRISIL B+/Stable (Migrated from
'CRISIL B+/Stable ISSUER NOT
COOPERATING; Rating Withdrawn)
SRSBL was established in 2010, promoted by Mr P K Jain and Mr Anuj
Jain for developing real estate projects. The company is currently
executing three residential projects (Padam Pride I, Padam Pride
II, and Padam Eternity I) in Agra. These projects comprise
residential blocks with 315 flats in a mix of three-BHK (bedroom,
hall, and kitchen) and four-BHK flats.
SAASTHA MEGA: CARE Lowers Rating on INR120cr LT Loan to B
---------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Saastha Mega Food Parks Private Limited (SMFPPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 120.00 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 SMFPPL under the 'issuer non-cooperating'
category as SMFPPL 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. SMFPPL 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 SMFPPL have been
revised on account of non-availability of requisite information
including status of project as on date.
Incorporated in May 2012, Saastha Mega Food Park Private Limited is
a project SPV created to set up a logistics park/ Private Freight
Terminal on a land area of 105 acres near Raigad, Maharashtra. The
company is a part of NDR Group providing Agri warehousing and
third-party logistics services since 1954. Continental Warehousing
Corporation (NhavaSeva) Limited, flagship company of the group
provides warehousing, CFS services, cargo storage, bonded & general
warehouse facility and container depot with repair facilities. The
other companies in the group includes Continental Multimodal
Terminals Limited which operates a PFT in Hyderabad. Kaveri
Warehousing Pvt. Ltd. (KWPL) which is into supply chain management
services, such as manpower service, transportation and facility
services to corporate clients and Delex Cargo (India) Private
Limited (DelEx) providing pickup and delivery operations, express
cargo services and distribution logistic services to domestic
airlines.
SAHA INFRATECH: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Saha
Infratech Private Limited (SIPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non Convertible 160.00 CARE D; ISSUER NOT COOPERATING
Debentures Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE had, vide its press release dated March 29, 2019; placed the
rating of SIPL under the 'issuer non-cooperating' category as SIPL
had failed to provide information for monitoring of the rating.
SIPL continues to be noncooperative despite repeated requests for
submission of information through e-mails dated April 5, 2023,
April 15, 2023, and April 25, 2023. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the best
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders, and the public
at large are hence requested to exercise caution while using the
above rating.
Analytical approach: Standalone
Detailed description of the key rating drivers:
At the time of last rating on May 20, 2022, the following were the
rating strengths and weaknesses:
Key Rating Weaknesses
* Ongoing Delays in Debt Servicing: The company has defaulted in
debt servicing of the interest payments due on December 30, 2018,
due to tight liquidity position.
* Subdued industry scenario: The real estate sector has been
grappling with issues such as unsold inventory, delayed delivery,
and financial stress on the developers for quite some years now and
post demonetisation; due to higher liquidity the buyers have
deferred their purchases as they are expecting the borrowing rates
to come down. However, with the introduction of Real Estate
regulation and Development Act (RERA) and GST (Goods and Services
Tax), the residential real estate sector is on the path of
transformation with modified rules and mandatory approvals which
will enhance the transparency and customers' trust in the sector
but also add additional burden on the developers which might hamper
the sentiments of the market.
Saha Infratech Private Limited (SIPL) was incorporated in 2011 and
is promoted by Mr. Aniel Kumar Saha (Chairman & Managing Director)
who is a professional architect and holds a degree of Master of
Architecture. He has over 30 years of experience in real estate
development. Mr. Ashok Kumar Sirohi (Joint Managing Director) has
experience of over a decade in real estate sector and is
responsible for making strategic decisions for the company. SIPL
was engaged in real estate development and construction of
residential group housing projects working to deliver its two
maiden real estate projects; both of them located in Noida
(UttarPradesh).
SHREENATHJI ENTERPRISE: CRISIL Assigns D Rating to INR12.5cr Loan
-----------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL D' rating to the long-term
bank facilities of Shreenathji Enterprise (SE).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12.0 CRISIL D (Assigned)
Term Loan 12.5 CRISIL D (Assigned)
The rating reflects delay by SE in servicing interest on its term
loan. It also factors in the firm's exposure to risks related to
ongoing projects and its expected leveraged capital structure.
These weaknesses are partially offset by longstanding presence of
the partners in the industry and adoption of the latest machinery
in a steady industry.
Key Rating Drivers & Detailed Description
Weaknesses
* Exposure to risks related to ongoing project: SE is scheduled to
commence its project in April 2023. It is expected to face moderate
demand risk as the industry is highly fragmented, driven by low
entry barriers with small capital and technological requirement.
The firm will also be exposed to intense competition from other
players in the segment. Timely completion and successful
stabilisation of operations at the new unit will remain a key
rating sensitivity factor.
* Expected leveraged capital structure: SE is expected to have an
average financial risk profile with high gearing and modest debt
protection metrics. The project is aggressively funded through a
debt-equity ratio 1.2 times.
* Delay in debt servicing: SE has delayed servicing of interest on
its term loan in the previous two months (November 2022 and
December 2022) on account of weak liquidity.
Strengths
* Extensive experience of the partners: The long diversified
entrepreneurial experience of the partners across businesses has
helped them develop healthy business relationships. This is
expected to support the firm in quickly ramping up operations over
the medium term.
* Adoption of the latest machinery in a steady industry: SE is in
the process of setting a new unit with the latest equipment and
technology. Adoption of the latest machinery in a steady industry
would support its business profile.
Liquidity: Poor
The poor liquidity is reflected in the firm's fully drawn bank
limit over the 12 months through October 2022. Furthermore, SE
delayed interest payment on its term loan for ~60 days in November
and December 2022. However, timely infusion of equity and unsecured
loans and loan moratorium period of 18 months shall partly support
operations in the initial phase; repayment is expected to commence
from April-May 2023. Modest networth, large working capital
requirement and leveraged capital structure shall continue to
constrain liquidity.
Rating Sensitivity factors
Upward factors
* Track record of timely debt servicing and no irregularity for at
least three months
* Significant improvement in liquidity
SE was established in April 2019 as a partnership firm. It is based
in Khambhat, Gujarat, and is setting up a unit to manufacture dye,
chemicals and other allied products with capacity of 500-600 tonne
for CPC Blue and 100-150 tonne for Alpha Blue and Beta Blue. The
plant is expected to commence operations from April-May 2023. SE is
promoted by Mr. Akash Dipak Patel, Mr. Arpit Babubhai Patel, Mr.
Jayesh Babulal Patel, Mr. Kamleshkumar Devchanddas Patel and Mr.
Sanjaykumar Narayan Jha.
SILVER JUBILEE: CRISIL Lowers Long/Short Term Loan Ratings to D
---------------------------------------------------------------
CRISIL Ratings has revised the ratings on certain bank facilities
of Silver Jubilee Motors Limited (SJML), as:
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Rating - CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
Short Term Rating - CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL A4 ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with SJML for
obtaining information through letters and emails dated January 22,
2022 and February 7, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SJML, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SJML
is consistent with 'Assessing Information Adequacy Risk'.
CRISIL Ratings has downgraded its ratings on the bank facilities of
SJML to 'CRISIL D/CRISIL D Issuer Not Cooperating' from 'CRISIL
B/Stable/CRISIL A4 Issuer Not Cooperating'. The rating action is on
the account of delays in debt servicing which came to CRISIL's
ratings from external, public information.
Incorporated in 1935, SJML is a Pune (Maharashtra) based listed
entity. The company has automobile dealership of Mahindra &
Mahindra (for light commercial vehicles as well as passenger
vehicles) and is operating a fuel station under IOCL dealership.
SJML is promoted and managed by Mr. Sanjay Jagtap.
SOUTHERN HEALTH: CRISIL Withdraws B+ Debt Rating on INR14cr Loan
----------------------------------------------------------------
Due to inadequate information, CRISIL Ratings, in line with SEBI
guidelines, had migrated the rating of Southern Health Foods
Private Limited (SHFPL) to 'CRISIL B+/Stable/Issuer not
cooperating'. CRISIL Ratings has withdrawn its rating on bank
facility of SHFPL following a request from the company and on
receipt of a 'no dues certificate' from the banker. Consequently,
CRISIL Ratings is migrating the ratings on bank facilities of SHFPL
from 'CRISIL B+/Stable/Issuer Not Cooperating to 'CRISIL
B+/Stable'. The rating action is in line with CRISIL Ratings'
policy on withdrawal of bank loan ratings.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 14 CRISIL B+/Stable (Migrated from
'CRISIL B+/Stable ISSUER NOT
COOPERATING; Rating Withdrawn)
Term Loan 6 CRISIL B+/Stable (Migrated from
'CRISIL B+/Stable ISSUER NOT
COOPERATING; Rating Withdrawn)
SHFPL was established in 2005 as a partnership firm, Southern Food
Specialties, by brothers Mr Syed Sajan and Mr Nazar. The firm was
reconstituted as a private limited company with the current name in
2012. It manufactures a wide variety of ready-to-cook health foods,
baby products, anti-diabetic products, and breakfast cereals, which
it markets under the brand Manna.
SURYAJYOTI SPINNING: Liquidation Process Case Summary
-----------------------------------------------------
Debtor: Suryajoti Spinning Mills
Registered Office:
Burgul Village, Farooq Nagar Village,
Farooq Nagar Mandal,
Mahaboobnagar District, 509202 – TG
Corporate Office:
105, 7th Floor, Surya Towers
Sardar Patel Road,
Secunderabad - 500003, TG
Liquidation Commencement Date: April 18, 2023
Court: National Company Law Tribunal Kolkata Bench
Liquidator: Dr. Kondapalli Venkat Srinivas
# 402, 4th Floor, 6-3-249/6, Alcazar Plaza & Towers
Road No. 1, Banjara Hills,
Hyderabad, Telangana ,500034
Email: kvsrinivas12@gmail.com
ip_kvs@assetsadvisory.com
Email: cirpsurya@gmail.com
Last date for
submission of claims: May 18, 2023
SWADESH MILK: CARE Keeps B+ Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Swadesh
Milk Products Private Limited (SMPPL) 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 & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated May 3, 2022,
placed the rating(s) of SMPPL under the 'issuer non-cooperating'
category as SMPPL 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. SMPPL continues to
be noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 19, 2023, March 29, 2023, April 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).
Lucknow, Uttar Pradesh based Swadesh Milk Products Private Limited
(SMPL) (erstwhile Devashish Diary Private Limited) was incorporated
in August, 2004 and is currently being managed by Mr Piyush
Upadhyay and Ms Deep Mala Upadhyay. The company is engaged in
processing of milk and milk products i.e., milk, butter, ghee, curd
and paneer. The company sells its products i.e., milk, butter,
ghee, curd, paneer, etc. under the brand name of "Shuddh" through
distributor/dealer network in Uttar Pradesh.
T M SUBRAMANIAM: CARE Keeps B- Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of T M
Subramaniam And Co (TMSC) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.16 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 28, 2022,
placed the rating(s) of TMSC under the 'issuer non-cooperating'
category as TMSC 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. TMSC 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).
T M Subramaniam & Co (TMSC) was established as a proprietorship
concern in the year 1973 by Mr. T.M. Subramaniam. Later in 2013, it
has been reconstituted as a partnership firm along with his sons,
Mr T.M.S Sivakumar, Mr. Shakthi Sivakumar and Mr. TSS Sharan Kumar
as partners. Chennai based TMSC, undertakes all civil construction
projects for government organisations within Tamil Nadu State. The
company receives the work order from government organization by
participating in the tenders. TMS purchases raw materials like
sand, cement, iron and bricks from local suppliers.
TATA STEEL: Fitch Affirms 'BB+' Issuer Default Rating, Outlook Pos.
-------------------------------------------------------------------
Fitch Ratings has affirmed India-based Tata Steel Limited's (TSL)
Issuer Default Rating (IDR) at 'BB+' with a Positive Outlook. The
agency has also affirmed the rating on the USD1 billion notes due
July 2024 issued by TSL's subsidiary, ABJA Investment Co. Pte.
Ltd., and guaranteed by TSL, at 'BB+'.
The Positive Outlook reflects its expectation that TSL's EBITDA
leverage (total debt/EBITDA) is on track to decline to below 2.5x
by the financial year ending March 2025 (FY25), which would imply
better financial and overall credit profiles, despite increasing
materially in FY23. TSL's business profile remains robust, mainly
driven by its significant raw material output and highly
cost-efficient assets in India.
Fitch estimates that leverage rose to around 3.0x in FY23 (FY22:
1.2x), following a sharp fall in margins and EBITDA in line with
weakness in the global steel industry. TSL's Indian operations were
also affected by the imposition of a six-month steel export duty,
while in Europe, a weaker cost position resulted in an EBITDA loss
in 2HFY23. Fitch expects annual margins in India to improve from
FY24. This, along with a margin recovery in Europe and jump in
sales volumes in FY25, should drive EBITDA growth and deleveraging
despite higher capex.
KEY RATING DRIVERS
Better Margins from FY24: Fitch estimates TSL's FY23 EBITDA margin
for standalone operations in India, which accounted for over 85% of
consolidated EBITDA, was around USD165 per tonne (t) (INR13,300/t)
after adjusting for forex impact and lease-related expenses. This
was lower than the average of around USD195/t over FY17-FY21,
excluding an exceptionally profitable FY22. In addition to the
global fall in steel prices, Indian steelmakers were affected by
the imposition of a 15% export duty on several steel products from
22 May 2022.
Fitch assumes TSL's standalone EBITDA margin, in US-dollar terms,
will improve by FY25 to be closer to the FY17-FY21 average level,
helped by lower raw material costs, better demand-supply balance
for the industry and the rollback of the steel export duty in
November 2022.
Europe Turnaround Likely by 2HFY24: TSL suffered an EBITDA loss in
Europe in 2HFY23 for the first time since 3QFY21, due to weak price
realisations and high energy and other operating costs. Fitch
believes EBITDA may remain negative until 1HFY24, including the
four-month shutdown of a blast furnace in the Netherlands for
relining, and turn positive thereafter. The improvement should be
supported by a recovery in local steel demand, from a weak base,
and TSL's cost-cutting efforts in the last few years.
Volume Jump in FY25: Fitch expects TSL's consolidated sales volumes
to grow by 3% in FY24, after falling in FY23 due to lower sales in
Europe. Volume growth in FY24 should be driven by the ramp-up of
operations at Neelachal Ispat Nigam Limited, which was acquired in
FY23, to near its capacity of 1 million tonnes per annum (mtpa).
Fitch expects TSL's sales volumes to jump by 9% in FY25, driven by
a 5mtpa capacity expansion at Kalinganagar in India and supported
by volume recovery in Europe.
Planned Mergers Present Upside: TSL is pursuing mergers with six
subsidiaries and one associate, using share swaps. These are likely
to be completed in FY24. TSL, according to news reports, estimates
annual cost savings to be well over INR8 billion with a large
contribution from lower royalty payments, which could present an
upside of 2% or more to its forecast.
Captive Raw Materials; Low-Cost Position: TSL meets 100% of its
iron ore requirements in India and about one-sixth of its coking
coal requirements through its mines, based on its FY22 annual
report. However, its overseas assets do not benefit from
raw-material production. TSL's plants in Kalinganagar and
Jamshedpur in India are the lowest-cost assets in the world,
according to CRU's 2023 crude steel site cost data. The UK plant is
in the third quartile of the global cost curve, but the
weighted-average cost position of TSL's steelmaking operations is
in the first quartile by Fitch's estimate.
Capex Likely to Increase: Fitch expects TSL's average annual capex
over the next three years to increase further from INR141 billion
in FY23 (FY22: INR105 billion). Spending in FY24 will mainly be on
the capacity expansion at Kalinganagar, which Fitch expects to be
commissioned by early FY25. Fitch believes TSL will focus on the
next phase of capacity growth in India from FY25 to achieve its
target of around 40mtpa of capacity by 2030. TSL is also likely to
incur capex in Europe, to replace its production capacity with more
carbon-efficient options.
Lower Leverage, Improved FCF: Fitch estimates TSL's total
debt/EBITDA leverage will decline to 2.4x by FY25, driven by EBITDA
growth. Fitch estimates higher EBITDA will enable TSL to generate
neutral or positive free cash flow (FCF) from FY25, from negative
FCF in FY23 and FY24, despite substantial capex and dividends.
Tata Group's Support: Fitch applies a one-notch uplift to TSL's
Standalone Credit Profile (SCP) of 'bb' to derive the IDR, due to
potential support from the Tata Group, which owns a 34% stake in
TSL. The group previously subscribed to its share of TSL's rights
issue launched in 2018.
According to Fitch's Parent and Subsidiary Linkage Rating Criteria,
the principles of linkage may be used to rate an investee (TSL)
closer to the investor (Tata Group), in the case of potential
implied support from the latter. Fitch believes there is medium
strategic incentive for the Tata Group to provide support, despite
low legal and operational incentives, given TSL's substantial
contribution to the group's asset base and dividend receipts, its
growth outlook and reputational risk to the group if TSL defaults.
DERIVATION SUMMARY
JSW Steel Limited (JSWS, BB/Stable) is TSL's close Indian peer.
TSL's operations in India have better vertical integration and a
higher EBITDA margin than that of JSWS. This is counterbalanced by
TSL's significant exposure to Europe, where it faces higher costs
and a weaker demand outlook than in India. Fitch estimates that
JSWS's gross debt/EBITDA leverage in FY23 was higher than TSL's, at
around 6.0x, and is likely to remain over 3.0x over the next three
years. The likelihood of having a better leverage profile than JSWS
indicates a potentially higher SCP for TSL, which underpins its
Positive Outlook on its rating.
TSL can also be compared with global peers United States Steel
Corporation (U.S. Steel, BB/Stable) and Usinas Siderurgicas de
Minas Gerais S.A. (Usiminas, BB/Stable).
U. S. Steel is an integrated steel producer of flat-rolled steel
and tubular products with operations in North America and Europe.
It has a weaker cost position than TSL, with assets in the third
quartile of the global cost curve on average. However, U.S. Steel
is shifting its focus to flexible and lower-cost, more efficient
mini mills, which Fitch believes will improve its overall cost
position and reduce earnings volatility. U.S. Steel's EBITDA
leverage in 2022 is also lower than its estimate for TSL in FY23.
Fitch believes TSL's stronger business profile, based on a better
cost position, is offset by its higher leverage.
Brazilian steelmaker Usiminas is the largest domestic supplier of
cold rolled and electro-galvanised steel products. The company has
a production capacity of 5mtpa of crude steel and 12mtpa of iron
ore. Compared with TSL, Usiminas has a weaker cost position in
steel in the third quartile of the global cost curve. However, its
business profile benefits from significant iron ore output, a
portion of which can be sold externally to boost cash flow. In
addition, Usiminas's 2021 EBITDA leverage was lower than TSL's in
FY22.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
- Standalone sales volume CAGR of 7% over FY24-FY26, excluding the
entities proposed to be merged, driven by capacity expansion at the
Kalinganagar plant
- EBITDA/t margin for standalone operations of INR14,150 in FY24
improving to around INR14,750 by FY25
- Average annual EBITDA from other assets of around INR60 billion
over FY24-FY26
- Average annual consolidated capex of INR165 billion over
FY24-FY26
- Average annual dividend outflow of around INR55 billion over
FY24-FY26
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- EBITDA leverage (total debt to EBITDA) below 2.5x on a sustained
basis.
- Sustained neutral-to-positive FCF.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Expectations of weaker implied support from the Tata Group.
- Fitch may revise the Outlook to Stable if performance is weaker
than the sensitivities for positive rating action.
LIQUIDITY AND DEBT STRUCTURE
Financial Access Supports Liquidity:TSL reported consolidated cash,
cash equivalents and current investments of INR158 billion as of
FYE23 and current portion of borrowings of around INR265 billion.
TSL had long-term debt maturities of around INR115 billion each in
FY24 and FY25, as per its FY22 annual report. The maturities
include SGD300 million bonds due in May 2023, USD300 million bonds
due in July 2023 and USD1 billion notes due in July 2024.
Fitch expects TSL to roll over its short-term debt for working
capital, given its healthy operating profile. Fitch thinks the
company will rely on refinancing to address a significant portion
of its long-term debt maturities in the next two years, based on
its estimate of negative FCF over the period. However, TSL's strong
banking relationships and access to financial markets mitigate
refinancing and liquidity risks.
ISSUER PROFILE
TSL is among the largest steelmakers in India, with a capacity of
around 21mtpa and a flat-products focused portfolio. TSL also has
12mtpa of steelmaking capacity in Europe and around 2mtpa in
Thailand.
SUMMARY OF FINANCIAL ADJUSTMENTS
Material financial adjustments for TSL include:
- An interest-bearing customer advance (FY22: INR49.7 billion) has
been treated as debt. The current portion of the advance (FY22:
INR14.1 billion) has been included under short-term debt;
- Current investments in mutual funds (FY22: INR85.2 billion),
which are highly liquid, have been treated as readily available
cash;
- Capitalised debt transaction costs (FY22: INR6.3 billion) have
been added back to better reflect amount repayable at maturity;
- Net foreign-exchange loss (FY22: INR13.3 billion) has been
excluded from EBITDA;
- Net income attributable to minorities (FY22: INR16.0 billion) has
been excluded from EBITDA while calculating financial ratios, such
as for leverage; and
- Interest expense on lease obligations (FY22: INR6.4 billion) and
depreciation on right-of-use assets (FY22: INR11.0 billion) have
been treated as lease expense and excluded from EBITDA. Lease
obligations have also been excluded from debt.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Tata Steel
Limited LT IDR BB+ Affirmed BB+
senior
unsecured LT BB+ Affirmed BB+
ABJA Investment
Co. Pte. Ltd.
senior
unsecured LT BB+ Affirmed RR4 BB+
VARSHINI INDUSTRIES: CARE Cuts Rating on INR5.0cr LT Loan to B-
---------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Varshini Industries (VI), as:
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 and
Revised from CARE B; Stable
and moved to ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE has placed the ratings of VI under the 'issuer
non-cooperating' category as VI had failed to provide the 'no
default statement' for three consecutive months. VI continues to be
non-cooperative despite repeated requests for submission of
information to monitor the ratings through phone calls, and emails
dated May 2, 2023, May 1, 2023, April 24, 2023 and April 21, 2023.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
The revision in ratings factors in non-cooperation by VI and CARE's
efforts to undertake a review of the ratings outstanding. CARE
views information availability risk as a key factor in its
assessment of credit risk. Further, the ratings to the proposed
bank facilities of Varshini Industries (VI) continues to be
constrained on account of high project execution risk considering
the nascent stage of project progress with debt still to be tied up
coupled with fragmented and competitive nature of the industry.
These rating weaknesses are partially offset by experienced
proprietor and growing food processing industry.
Analytical approach: Standalone
Detailed description of the key rating drivers:
At the time of last rating on April 28, 2022, following were the
rating strengths and weaknesses.
Key Rating Weaknesses
* Project execution risk: VI is in the process of setting up a
plant for food processing plant for bakery items and biscuits. The
total cost of setting up of the plant is envisaged to be INR5.00
crore funded out of INR4.00 Cr of term debt and remaining through
promoter contribution. The company is in the process of tying up of
the debt for the project and expects to commence project execution
by May of 2022. The project is expected to be completed by April
2023 and start its commercial operations from May 2023 onwards.
* Fragmented and competitive nature of the industry: VI is engaged
in the business of food processing business, which is highly
fragmented and competitive in nature as evident by the presence of
numerous unorganized and few organized players across India. Hence,
the players in the industry do not have any pricing power and are
exposed to competition induced pressures on profitability.
Key Rating Strengths
* Experienced proprietor: VI is promoted by K Padmavathi who is a
partner in part of Amruth Group engaged in fertilizer industry for
more than a decade of experience in fertilizer industry through
other group entity namely Amruth Organic Fertilizers and Varshini
Fertilizers Private Limited.
Commodities Chemicals Fertilizers & Agrochemicals Fertilizers
Varshini Industries (VI) is a proprietorship concern established in
2021 and is promoted by Mrs. Koutha Padmavathi. The firm is engaged
into trading of gunny bags transportation business. The firm is now
planning to start a food processing firm having presence in bakery
items, biscuits and millets and other food processes and is
expected to commence its operations of the same from May '23
onwards.
WHITE GOLD: CARE Keeps B- Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of White Gold
Agro Industries (WGAI) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.27 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 May 2, 2022,
placed the rating(s) of WGAI under the 'issuer non-cooperating'
category as WGAI 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. WGAI continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 21, 2023, March 31, 2023, April 10, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
White Gold Agro Industries (WGAI) based in Ludhiana, Punjab was
established in August, 2016 as a partnership firm and is currently
being managed by Mr. Vinod Jain, Mr. Rajiv Garg and Mr. Rishabh
Goyal as its partners. WGAI is engaged in processing of raw cashews
at its facility located in Ludhiana, Punjab. The firm sells its
finished goods under the brand name 'Golden Nuts' directly to
wholesalers and traders based in Rajasthan, Delhi, Punjab, Haryana
etc.
=================
I N D O N E S I A
=================
SAKA ENERGI: Moody's Affirms 'B2' CFR, Outlook Remains Stable
-------------------------------------------------------------
Moody's Investors Service has affirmed Saka Energi Indonesia
(P.T.)'s B2 corporate family rating and senior unsecured bond
rating.
The outlook on all ratings remain stable.
"The affirmation of Saka Energi's B2 ratings reflect Moody's
expectation that its shareholder group will step in to provide
support if the operating environment deteriorates such that the
company does not generate sufficient cash flows to repay its $376
million US dollar bond due in May 2024," says Rachel Chua, a
Moody's Vice President and Senior Analyst.
"At the same time, Saka Energi's fundamental credit profile remains
driven by its long-term fixed-price gas sales contracts with
quality counterparties, which provide some revenue stability and
support its strong credit metrics," adds Chua, who is also Moody's
Lead Analyst for Saka Energi.
The rating remains constrained by the company's small scale,
declining production profile and its exposure to high geographic
concentration risk.
RATINGS RATIONALE
In January 2023, Saka Energi repaid $77.6 million of its
shareholder loan to its 100% owner Perusahaan Gas Negara (P.T.)
(PGN, Baa2 stable). The repayment came on the back of a strong year
for the company, which generated annual EBITDA of $529 million
compared with $271 million a year ago. The repayment was in line
with the repayment schedule.
Beyond the January 2023 shareholder loan repayment, Moody's does
not expect Saka Energi to make further repayments to PGN ahead of
May 2024. The next shareholder loan repayment of $141.5 million is
in December 2024.
Moody's views the shareholder loan repayment as credit negative
given that it lowers the available cash balance at Saka Energi to
prepare for the repayment of its US dollar bond due May 2024.
However, Moody's also notes that the repayment amount was not large
and can be accommodated given the company's strong cash flow
generation. Post-repayment, the company is projected to have a
healthy cash balance of $352 million as of March 31, 2023.
Moody's expects Saka Energi's credit metrics to remain strong over
the next two years. Its adjusted retained cash flow/debt will
likely stay well above 30% during this period while adjusted
debt/EBITDA will remain under2.5x.
These projections assume average daily production of 25-27 thousand
barrels of oil equivalent per day (kboepd) annually and are
anchored to Moody's medium-term oil price assumptions of $55-$75
per barrel. If prevailing oil prices were to rise to significantly
higher than Moody's price assumptions on a sustained basis, the
company could generate higher earnings than the agency's current
expectations and deliver even stronger credit metrics.
The one-notch uplift from parental support incorporated in Saka's
B2 ratings takes into account the cross-default clauses between
Saka and its parent PGN, and the reputational and funding risks to
PGN and its ultimate shareholder, Pertamina (Persero) (P.T.)
(Pertamina, Baa2 stable), the 100% state-owned national oil company
in Indonesia (Baa2 stable), should Saka default.
Saka has adequate liquidity over the next 18 months. Moody's
projects that Saka held cash and cash equivalents of around $352
million at March 31, 2023. Excluding expansionary capital spending
and the further repayment of shareholder loan, Moody's expect its
cash balance and projected cash flow from operations to be
sufficient to support its debt repayment and capital spending over
the next 18 months. Saka's next debt maturity comprises the
remaining $376 million of its USD dollar bond due in May 2024.
Beyond that, the remaining shareholder loan of $283.1 million will
come due in two equal tranches in December 2024 and 2025.
The stable rating outlook reflects Moody's view that Saka's
operational performance will remain healthy over the next 12-18
months and that it will maintain its cash balance to address debt
maturities.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade of Saka's ratings is unlikely unless the company can
fully address the maturity of its remaining $376 million bond due
in 2024 and there is clarity on Saka's strategic role within the
consolidated Pertamina/PGN group, with clear financial support from
its shareholders.
Moody's could downgrade Saka's ratings if the agency lowers its
assessment of parental support incorporated into the ratings. This
could be driven by a significant change in Saka's ownership
structure; a deterioration in Saka's importance to PGN, such that
it does not qualify as a material subsidiary under the terms and
conditions of the unsecured notes due in 2024 issued by PGN; or an
early repayment of the shareholder loan by Saka, which results in a
significant strain on its liquidity.
The ratings could also be downgraded if Saka's standalone credit
profile deteriorates because of weak liquidity, or the company's
reserves and production continue to decline.
Credit metrics indicative of a downgrade include adjusted retained
cash flow/debt falling below 10% or adjusted EBITDA/interest
falling below 2.5x.
The principal methodology used in these ratings was Independent
Exploration and Production published in December 2022.
Saka Energi Indonesia (P.T.) is an independent oil and gas
exploration and production company in Indonesia. The company holds
working interests in 11 oil and gas blocks, six of which are
producing. In 2022, Saka reported net production of 33 kbpoed per
day.
Saka is wholly owned by natural gas distribution and transmission
company, Perusahaan Gas Negara (P.T.) (PGN). PGN is 56.96% owned by
Indonesia's 100% state-owned national oil company, Pertamina
(Persero) (P.T.).
=====================
N E W Z E A L A N D
=====================
EAGLES DRAINAGE: Court to Hear Wind-Up Petition on May 17
---------------------------------------------------------
A petition to wind up the operations of Eagles Drainage Contractor
Limited will be heard before the High Court at Auckland on May 17,
2023, at 10:45 a.m.
No. 8 Hire Limited filed the petition against the company on March
29, 2023.
The Petitioner's solicitor is:
Christina Keil
Level 1, 6 Edward Wayte Place
PO Box 261
Shortland Street
Auckland
LIMELIGHT GROUP: DTR Closing 20 Shops Due to 'multiple Challenges'
------------------------------------------------------------------
Brianna Mcilraith at Stuff.co.nz reports that financial services
provider and retailer DTR is closing its retail stores after facing
"multiple challenges" over the past two years, its chief operating
officer says.
It has 20 shops across New Zealand which sell homeware and
electronics on finance.
According to Stuff, chief operating officer Garry Stratta said it
had been tough for the company since Covid-19 began.
"DTR has faced numerous challenges over the past 24 months," the
report quotes Mr. Stratta as saying. "Our network of stores has
struggled to recover from the economic effects of the Covid-19
pandemic."
More recently high inflation, rising interest rates and the
increasing cost of maintaining a bricks-and-mortar presence had
also affected the business, he said.
"This has coincided with changing consumer demands and the
increased cost of living impacting DTR's consumer finance
business."
As a result, it was closing all 20 stores between the end of May
and end of August.
Stuff notes that the business would still continue to operate
online and existing customers would be supported via digital
channels.
"We are doing everything we can to support affected staff to find
and transition to new roles."
The company was started by Stan Pemberton back in 1962 as a way to
make televisions more accessible, by renting them on weekly
payments.
Up until March 2022, it was owned by financial services provider
Thorn Financial Services, which then merged with Limelight
Software, provider of vehicle dealership management software, to
form Limelight Group.
NZ4U2U LIMITED: Court to Hear Wind-Up Petition on June 8
--------------------------------------------------------
A petition to wind up the operations of NZ4U2U Limited will be
heard before the High Court at Christchurch on June 8, 2023, at
10:00 a.m.
Terresa Lee Lindsay and Nigel Bernard Frost filed the petition
against the company on April 19, 2023.
The Petitioner's solicitor is:
J. R. F. Cochrane
Lane Neave
Level 8 Vero Centre
48 Shortland Street
Auckland 1010
OREGON MANAGEMENT: Creditors' Proofs of Debt Due on June 2
----------------------------------------------------------
Creditors of Oregon Management Consulting Limited are required to
file their proofs of debt by June 2, 2023, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on May 2, 2023.
The company's liquidator is:
Brenton Hunt
PO Box 13400
City East
Christchurch 8141
SKP PROPERTY: Creditors' Proofs of Debt Due on June 12
------------------------------------------------------
Creditors of SKP Property Limited and Yangzi Development Company
Limited are required to file their proofs of debt by June 12, 2023,
to be included in the company's dividend distribution.
SKP Property Limited commenced wind-up proceedings on April 27,
2023.
Yangzi Development Company Limited commenced wind-up proceedings on
May 4, 2023.
The company's liquidators are:
Daran Nair
Heiko Draht
Nair Draht Limited
97 Great South Road
Greenlane
Auckland 1051
TITAN ACQUISITIONCO: Moody's Cuts CFR to B3, Outlook Stable
-----------------------------------------------------------
Moody's Investors Service has downgraded Titan AcquisitionCo New
Zealand Limited's (Trade Me) corporate family and senior secured
first lien term loan ratings to B3 from B2. The outlook on the
ratings has been revised to stable from negative.
RATINGS RATIONALE
The ratings downgrade to B3 reflects the company's high financial
leverage, which combined with the rise in interest rates, will
result in a considerable increase in the company's interest costs
over the next 12-18 months. Moody's expects under its base case
this would weaken the company's EBITDA/interest expense ratio to
the low-to-mid 1x range, while limiting free cash flow (after debt
service) to a broadly neutral level.
While the company faces a steep rise in interest costs for the
fiscal year ending June 30, 2024, Moody's notes that the company
has taken out new interest rate swaps in the current fiscal year
which will last until the end of the fiscal year ending June 2025,
and cover around 70% of its debt. This should help limit downside
risks from further rate rises.
The downgrade also considers current macroeconomic headwinds, with
higher interest rates, lower house prices, elevated inflation and
cost of living pressures likely to have a negative impact on demand
for Trade Me's services, and therefore its earnings over the near
term. Moody's understands that the company has started to see some
signs of softer demand in recent months.
Trade Me's adjusted gross debt/EBITDA registered around 7.5x for
the fiscal year ended June 30, 2022, and Moody's estimates that
gross debt/EBITDA was around 7.3x for the twelve months to December
2022. Since the dividend recapitalization in October 2021, the
company has been showing deleveraging helped by earnings growth,
which has been supported by the company successfully implementing
pricing increases without material customer churn.
Despite macroeconomic headwinds, the company believes it can
continue to grow its earnings over the next 12-18 months, given the
good growth potential of the Property and Motors segments. However,
Moody's considers that there is still uncertainty over the severity
and duration of the negative impact from the current adverse
macroeconomic environment. As such, there is potential for weaker
earnings and credit metrics over the next 12-18 months relative to
the company's current expectation.
Trade Me has very good liquidity. The company held around NZD58
million of cash as of December 31, 2022, and has access to
available undrawn revolver of NZD150 million.
Trade Me's ratings continue to benefit from the company's leading
market position and strong brand awareness in New Zealand, good
business line diversity and strong margins and low capex
requirements.
The ratings are constrained by the company's high leverage,
increasing interest costs, exposure to current macroeconomic
headwinds and reductions in discretionary spending, as well as the
potential for new entrants and disruption in the company's
industry.
The stable outlook reflects Moody's expectation that the company's
operating performance will allow it to maintain sufficient
liquidity, and operate within the parameters set for the B3
rating.
ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS
Trade Me's ESG Credit Impact Score is Highly Negative (CIS-4). ESG
attributes have some negative impact on the rating currently due to
the company's private equity ownership, which results in
prioritization of shareholder interests over creditor interests,
such as more aggressive growth plans and strategies, including a
tolerance for higher debt and leverage.
Trade Me has neutral-to-low (E-2) exposure to environmental risks,
given the nature of its operations as an online classifieds and
marketplace business.
Trade Me has moderately negative (S-3) exposure to social risks.
This primarily reflects data security risks as the company collects
a large amount of personal data through its online businesses.
Given the sensitive nature of some of the data collected, such as
credit card details and personal information, any data breaches
would have the potential to trigger to legal, regulatory or
reputational consequences.
Trade Me has highly negative exposure (G-4) to governance risks.
This reflects the company's private equity ownership, which results
in prioritization of shareholder interests over creditor interests,
such as more aggressive growth plans and strategies, including a
tolerance for higher debt and leverage.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Further negative rating pressure could develop if: (1) the
company's competitive profile weakens, for example, as a result of
a material erosion in the company's market share; (2) adjusted
debt/EBITDA exceeds 8.0x; (3) there is sustained negative free
cashflow; and/or (4) liquidity deteriorates or is likely to become
inadequate.
Positive rating pressure could develop should Trade Me demonstrate
strong earnings growth despite current headwinds. Financial
indicators that would support an upgrade include: (1) adjusted
debt/EBITDA sustained below 7.0x; (2) EBITDA/interest expense
sustained above 1.5x; and (3) positive free cash flow (after debt
service) on a consistent basis.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
Titan AcquisitionCo New Zealand Limited (Trade Me) is the leading
online marketplace and classified business in New Zealand with
local scale across a breadth of service offerings including
auctions, fixed price sales for new and used goods (Marketplace)
and classified advertisements for automotive (Motors), real estate
(Property) and employment (Jobs). Trade Me also has web businesses
specialising in accommodation and payments. The company was
acquired by Apax Partners in 2019.
WALKER FAMILY: Creditors' Proofs of Debt Due on June 1
------------------------------------------------------
Creditors of Walker Family Farms, Limited are required to file
their proofs of debt by June 1, 2023, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on May 3, 2023.
The company's liquidators are:
Steven Khov
Kieran Jones
Khov Jones Limited
PO Box 302261
North Harbour
Auckland 0751
=================
S I N G A P O R E
=================
CAPITAL MATCH: To Shut Platform and Enters Liquidation
------------------------------------------------------
The Business Times reports that Capital Match, a Singapore-based
startup that enticed investors with potentially high returns from
alternative investments, is shutting its platform and entering
liquidation.
An e-mail sent to investors on May 11, seen by The Business Times
(BT), said a liquidator will be appointed to manage the operations
and communication with investors from May 11.
Perun Consultants has been appointed the liquidator, BT understands
from a source.
A separate e-mail sent on May 8 urged investors to withdraw their
funds immediately and download any investment reports they may
require, BT relays. Capital Match ceased offering invoice financing
facilities for retail investors in March 2023, the e-mail said.
ITNL INTERNATIONAL: Court to Hear Wind-Up Petition on April 22
--------------------------------------------------------------
A petition to wind up the operations of ITNL International Pte Ltd
will be heard before the High Court of Singapore on April 22, 2023,
at 10:00 a.m.
The Petitioner's solicitors are:
BlackOak LLC
1 George Street, #12-01/02
Singapore 049145
MA2 SHOP: Commences Wind-Up Proceedings
---------------------------------------
Members of MA2 Shop Pte Ltd, on April 11, 2023, passed a resolution
to voluntarily wind up the company's operations.
The company's liquidator is:
Chan Yee Hong
CLA Global TS Risk Advisory
80 Robinson Road, #25-00
Singapore 068898
PRISMINVEST PARTNERS: Members' Final Meeting Set for June 12
------------------------------------------------------------
Members of Prisminvest Partners Pte. Ltd. will hold their final
general meeting on June 12, 2023, at 10:00 a.m., at 12 Tannery
Road, #10-01, HB Centre 1, in Singapore.
At the meeting, Lim Seow Hwa, the company's sole liquidator, will
give a report on the company's wind-up proceedings and property
disposal.
PWC NETWORK: Members' Final Meeting Set for June 12
---------------------------------------------------
Members of PWC Network Holdings Pte. Limited will hold their final
general meeting on June 12, 2023, at 10:00 a.m., via Zoom
tele-conference.
At the meeting, Chan Kheng Tek, the company's liquidators, will
give a report on the company's wind-up proceedings and property
disposal.
THREE ARROWS: Co-Founder Su Gets Restraining Order Against Hayes
----------------------------------------------------------------
The Straits Times reports that co-founder of failed crypto hedge
fund Three Arrows Capital (3AC) Zhu Su has been granted a
protection order from the state courts against crypto exchange
BitMEX co-founder Arthur Hayes.
Checks by The Straits Times found that the order, dated May 5,
prohibits Mr. Hayes from using any threatening, abusive or
insulting words or behaviour, or making any threatening, abusive or
insulting communication that would cause Zhu harassment, alarm or
distress.
Mr. Hayes was also barred from publishing any identity information
about Zhu, ST relates.
The order was first reported about by cryptocurrency news outlet
CoinDesk earlier on May 10.
According to ST, Mr. Hayes had been tweeting at Zhu and 3AC
co-founder Kyle Davies primarily with the request to return the
US$6 million (SGD7.95 million) that he claims he was owed after the
hedge fund tanked in 2022.
In one tweet on April 13, Mr. Hayes responded to a post promoting
Zhu and Davies' new crypto marketplace OPNX by asking for the 3AC's
founders' whereabouts.
He also blasted attempts by the two to raise funds for their new
platform, CoinDesk reported, ST relays.
A copy of the order was served to Mr. Hayes via Twitter.
Under the Protection from Harassment Act, failure to comply with
the order could result in a fine of up to SGD5,000, imprisonment
for not more than six months, or both.
Both Hayes and Zhu have previously drawn flak for their crypto
ventures.
In 2022, Mr. Hayes was fined US$10 million and sentenced to six
months of home confinement as well as two years of probation for
failing to prevent money launderers at BitMEX.
Meanwhile, the 3AC founders have spent months battling liquidators
looking to recover assets for creditors of their fallen fund after
it failed last summer, ST reports.
About Three Arrows Capital
Three Arrows Capital Ltd. was an investment firm engaged in
short-term opportunities trading, and is heavily invested in
cryptocurrency, funded through borrowings. As of April 2022, the
Debtor was reported to have over $3 billion of assets under its
management.
Three Arrows Capital Ltd. was incorporated as a business company
under the laws of the British Virgin Islands. Its sole shareholder
owning all of its "management shares" is Three Arrows Capital Pte.
Ltd., which previously operated as a regulated fund manager in
Singapore until 2021, when it shifted its domicile to the BVI, as
part of a global corporate plan to relocate operations to Dubai.
The Debtor borrowed digital and fiat currency from multiple lenders
to fund its cryptocurrency investments. After cryptocurrency lost
99% of its value, and then prices of other cryptocurrencies had
rapid declines, the Debtor reportedly defaulted on its
obligations.
On June 24, 2022, one of the Debtor's many creditors -- DRB Panama
Inc. -- filed an application to appoint joint provisional
liquidators -- and thereafter, full Liquidators -- in the Eastern
Caribbean Supreme Court in the High Court of Justice (Commercial
Division) located in BVI. The application was assigned claim number
VIHCOM2022/0117.
Subsequently, on June 27, 2022, the Debtor filed its own
application for the appointment of joint liquidators before the BVI
Commercial Court.
On June 29, 2022, the Honorable Mr. Justice Jack of the BVI
Commercial Court appointed Russell Crumpler and Christopher Farmer
of Teneo (BVI) Limited as joint liquidators of Three Arrows Capital
Ltd.
TITAN PRINCIPALS: Court Enters Wind-Up Order
--------------------------------------------
The High Court of Singapore entered an order on April 28, 2023, to
wind up the operations of Titan Principals Pte. Ltd.
Lim Boon Kiat (Lin Wenjie) filed the petition against the company.
The company's liquidators are:
Mr. Farooq Ahmad Mann
Mann & Associates PAC
3 Shenton Way #03-06C
Singapore 068805
=================
S R I L A N K A
=================
SRI LANKA: Requests Debt Treatment in Bilateral Committee Meeting
-----------------------------------------------------------------
Reuters reports that Sri Lankan authorities formally presented on
May 9 a request for debt treatment in the first meeting of the
official bilateral creditors committee, the Paris Club said in a
statement.
According to Reuters, the committee, co-chaired by India, Japan and
France, consists of 17 members and includes Paris Club creditors as
well as other official bilateral creditors.
Paris Club members with no claims on Sri Lanka as well as China,
Saudi Arabia and Iran were observers to the meeting, according to
the statement cited by Reuters.
Sri Lanka, formerly known as Ceylon and officially the Democratic
Socialist Republic of Sri Lanka, is an island country in South
Asia. It lies in the Indian Ocean, southwest of the Bay of Bengal,
and southeast of the Arabian Sea; it is separated from the Indian
subcontinent by the Gulf of Mannar and the Palk Strait. Sri Lanka
shares a maritime border with India and the Maldives. Sri
Jayawardenepura Kotte is its legislative capital, and Colombo is
its largest city and financial centre.
As reported in the Troubled Company Reporter-Asia Pacific, S&P
Global Ratings, on April 26, 2023, affirmed its long-term and
short-term foreign currency sovereign credit ratings on Sri Lanka
at 'SD/SD'. At the same time, S&P affirmed its 'CCC-' long-term
and 'C' short-term local currency sovereign ratings. The outlook
on the long-term local currency rating remains negative. S&P also
retained its transfer and convertibility assessment at 'CC'. The
negative outlook on the long-term local currency rating reflects a
high risk to commercial debt repayments over the next six months in
the context of Sri Lanka's economic, external, and
fiscal pressures.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2023. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000.
*** End of Transmission ***