/raid1/www/Hosts/bankrupt/TCRAP_Public/230517.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Wednesday, May 17, 2023, Vol. 26, No. 99
Headlines
A U S T R A L I A
FISHERS PROPERTY: First Creditors' Meeting Set for May 23
IN THE CODE: First Creditors' Meeting Set for May 22
LH SQUARED: First Creditors' Meeting Set for May 19
SAI LAM: Second Creditors' Meeting Set for May 19
SOCIETYONE PL 2023-1: Moody's Assigns (P)B2 Rating to Cl. F Notes
SUSHI BAY: Last Restaurant Ordered to Go Into Liquidation
YLPG ADMINISTRATION: Second Creditors' Meeting Set for May 19
C H I N A
ANBANG INSURANCE: Taiping Life Pays $431MM in Zheshang Bank Stake
KWG GROUP: Defaults on US$119 Million Notes, Dollar Bonds
I N D I A
ACHAL CASHEWS: ICRA Reaffirms B+ Rating on INR24cr Cash Credit
AMON-RA IMPEX: CARE Keeps B- Debt Rating in Not Cooperating
ARAVINDA STEELS: CARE Keeps B- Debt Rating in Not Cooperating
BAKERI URBAN: Ind-Ra Corrects March 10, 2023 Rating Release
BALAJI EDUCATIONAL: ICRA Cuts Rating on INR2.59cr Term Loan to B+
BHAIRAVESHWARA COOL: CARE Assigns B Rating to INR8.90cr LT Loan
CHHATRAPATI SAMBHAJI: Ind-Ra Hikes Long Term Issuer Rating to BB-
FRIENDS PAPER: CARE Lowers Rating on INR16.69cr LT Loan to B-
GO FIRST: Backs Emergency Arbitration in Pratt & Whitney Dispute
GREEN GOLD: Ind-Ra Assigns BB Non-Convertible Debt Rating
GSCO INFRASTRUCTURE: ICRA Withdraws D Rating on INR40cr LT Loan
GYPSY EXPORTS: CARE Keeps B- Debt Rating in Not Cooperating
HI-TRAC MANPOWER: CARE Keeps B Debt Rating in Not Cooperating
IL&FS FINANCIAL: Ind-Ra Corrects November 17, 2022 Rating Release
INFRASTRUCTURE LEASING: Ind-Ra Corrects Nov. 17 Rating Release
JAGDAMBAY EXPORTS: CARE Keeps D Debt Rating in Not Cooperating
JAI MAHARASHTRA: ICRA Keeps D Debt Rating in Not Cooperating
JYOTIRMAYEE FOODS: CARE Keeps B+ Debt Rating in Not Cooperating
KAVITA EXIM: CARE Keeps D Debt Rating in Not Cooperating Category
KONER FOOD: CARE Keeps B- Debt Rating in Not Cooperating Category
MAA CHANDI: CARE Keeps B- Debt Ratings in Not Cooperating
MAHAMAYA FOODS: CARE Keeps B- Debt Ratings in Not Cooperating
MEGRAJ HOLDINGS: Ind-Ra Assigns BB Non-Convertible Debt Rating
MOHINDRA COACHES: CARE Keeps B Debt Rating in Not Cooperating
NJR CONSTRUCTIONS: Ind-Ra Withdraws BB+ Long Term Issuer Rating
SAI KRIPA: CARE Keeps D Debt Rating in Not Cooperating Category
SEAWARD EXPORTS: ICRA Withdraws B+ Rating on INR10cr LT Loan
SHRIGEE AGRO: CARE Lowers Rating on INR20cr LT Loan to B-
SREELEKSHMI CASHEW: ICRA Keeps B+ Debt Ratings in Not Cooperating
SUNRISE KNITTING: CARE Lowers Rating on INR24cr LT Loan to B-
SUSHEE IVRCL: Ind-Ra Affirms B+ Term Loan Rating
J A P A N
RAKUTEN GROUP: Unveils JPY332BB Share Issue to Bolster Finances
M A C A U
MELCO RESORTS: S&P Affirms 'BB-' ICR, Alters Outlook to Stable
N E W Z E A L A N D
DOCTOR SWEEP: Court to Hear Wind-Up Petition on June 6
INTERIOR SEWING: Creditors' Proofs of Debt Due on June 15
NOVO 19: Creditors' Proofs of Debt Due on June 9
PR IMPORTS: Court to Hear Wind-Up Petition on May 26
RITZ ENTERPRISES: Creditors' Proofs of Debt Due on June 23
S I N G A P O R E
AIRWALLEX (SINGAPORE): Court to Hear Wind-Up Petition on May 26
CAPITAL MATCH: Creditors' Meeting Set for May 26
LCM GLOBAL: Creditors' Proofs of Debt Due on June 16
SKY THE LIMIT: Court Enters Wind-Up Order
YELLOW STAR: Creditors' Proofs of Debt Due on June 16
S O U T H K O R E A
ASIANA AIRLINES: Net Loss Widens to KRW54.36BB in Q1 Ended Mar. 31
KOREA ELECTRIC: Posts KRW6.2 Tril. Net Loss in Qtr Ended March 31
- - - - -
=================
A U S T R A L I A
=================
FISHERS PROPERTY: First Creditors' Meeting Set for May 23
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Fishers
Property Group Pty Ltd will be held on May 23, 2023, at 11:00 a.m.
via virtual meeting only.
Benjamin Joshua Ismay of Shaw Gidley Port Macquarie was appointed
as administrator of the company on May 11, 2023.
IN THE CODE: First Creditors' Meeting Set for May 22
----------------------------------------------------
A first meeting of the creditors in the proceedings of In the Code
Pty Ltd will be held on May 22, 2023, at 10:00 a.m. at Level 19,
144 Edward Street in Brisbane and via virtual meeting technology.
Travis Pullen of B&T Advisory was appointed as administrator of the
company on May 10, 2023.
LH SQUARED: First Creditors' Meeting Set for May 19
---------------------------------------------------
A first meeting of the creditors in the proceedings of LH Squared
Pty Ltd will be held on May 19, 2023, at 11:00 a.m. electronically
via Zoom.
Kelly Dale Meyn and Dermott Joseph McVeigh of Avior Consulting were
appointed as administrators of the company on May 9, 2023.
SAI LAM: Second Creditors' Meeting Set for May 19
-------------------------------------------------
A second meeting of creditors in the proceedings of Sai Lam Taan
Pty Ltd has been set for May 19, 2023 at 11:00 a.m. via virtual
meeting only.
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 18, 2023 at 4:00 p.m.
Danny Vrkic and Daniel O'Brien of DV Recovery Management were
appointed as administrators of the company on Feb. 10, 2023.
SOCIETYONE PL 2023-1: Moody's Assigns (P)B2 Rating to Cl. F Notes
-----------------------------------------------------------------
Moody's Investors Service has assigned provisional ratings to the
notes to be issued by Perpetual Corporate Trust Limited as trustee
of SocietyOne PL 2023-1 Trust.
Issuer: SocietyOne PL 2023-1 Trust
AUD75.00 million Class A1 Notes, Assigned (P)Aaa (sf)
AUD23.85 million Class A2 Notes, Assigned (P)Aaa (sf)
AUD12.15 million Class B Notes, Assigned (P)Aa2 (sf)
AUD8.70 million Class C Notes, Assigned (P)A2 (sf)
AUD8.10 million Class D Notes, Assigned (P)Baa2 (sf)
AUD8.85 million Class E Notes, Assigned (P)Ba2 (sf)
AUD8.40 million Class F Notes, Assigned (P)B2 (sf)
The AUD4.95 million of Class G Notes are not rated by Moody's.
The transaction is a cash securitisation of a portfolio of
Australian unsecured and secured consumer personal loans originated
by SocietyOne Australia Pty Ltd (SocietyOne, unrated). This is
SocietyOne's second term asset-backed securitisation transaction.
SocietyOne is an Australian non-bank lender providing consumer
loans, including unsecured and secured personal loans and secured
auto loans, to prime borrowers in Australia. SocietyOne is a wholly
owned subsidiary of MoneyMe Limited (unrated). MoneyMe Limited is
listed on the Australian Stock Exchange. As of March 2023
SocietyOne's loan portfolio amounted to around AUD404 million.
SocietyOne was established in 2012.
RATINGS RATIONALE
The provisional ratings take into account, among other factors, (1)
Moody's evaluation of the underlying receivables and their expected
performance, (2) evaluation of the capital structure and credit
enhancement provided to the notes, (3) availability of excess
spread over the transaction's life, (4) the liquidity facility in
the amount of 2.0% of the rated notes balance, subject to a floor
of AUD300,000, (5) the legal structure, (6) SocietyOne's
experience as servicer and (7) presence of Perpetual Corporate
Trust Limited (Perpetual) as the standby servicer.
According to Moody's, the transaction benefits from the high level
of excess spread available to cover losses arising from the
portfolio. The key challenge in the transaction is the limited
historical data available for the portfolio. SocietyOne is a
relatively new originator, with relevant historical default data
only available from the third quarter of 2017. As such, the pool's
performance could be subject to greater variability than the
currently available default data indicates. Moody's has
incorporated an additional stress into its default assumptions to
account for the limited data.
Moody's portfolio credit enhancement — representing the loss that
Moody's expects the portfolio to suffer in the event of a severe
recession scenario — is 36%. Moody's mean default for this
transaction is 8.5% and recovery rate is 5%.
Key transactional features are as follows:
The notes will be repaid on a sequential basis initially. Once
step-down conditions are satisfied, all notes, excluding Class G
Notes, will receive their pro-rata share of principal. Step-down
conditions include, among others, 45% subordination to the Class A2
Notes and no unreimbursed charge-offs. The repayment of principal
will revert to sequential on the call option date.
A swap provided by National Australia Bank Limited
(Aa3/P-1/Aa2(cr)/P-1(cr)) will hedge the interest rate mismatch
between the assets bearing a fixed rate of interest, and floating
rate liabilities. The notional balance of the swap will follow a
schedule based on amortisation of the assets assuming a certain
prepayment rate.
Perpetual is the back-up servicer. If SocietyOne is terminated as
servicer, Perpetual will take over the servicing role in accordance
with the standby servicing deed and its back-up servicing plan.
Key pool features are as follows:
As of the February 28, 2023 cut-off date, the securitised pool
consisted of 8,328 personal loans. The total outstanding balance of
the receivables was AUD150,000,018.
The weighted average interest rate of the portfolio is 12.5%.
80.9% of loans are to borrowers are in full-time employment.
The weighted average Equifax credit score of the portfolio is
739.
The weighted average remaining term of the portfolio is 46.1
months. The weighted average seasoning of the initial portfolio is
11.6 months.
Methodology Underlying the Rating Action
The principal methodology used in these ratings was "Moody's
Approach to Rating Consumer Loan-Backed ABS" published in December
2022.
Factors that would lead to an upgrade or downgrade of the ratings:
Factors that could lead to an upgrade of the notes include a rapid
build-up of credit enhancement due to sequential amortization or a
better-than-expected collateral performance. The Australian job
market is a primary driver of performance.
Factor that could lead to a downgrade of the notes is a
worse-than-expected collateral performance, poor servicing, error
on the part of transaction parties, a deterioration in the credit
quality of transaction counterparties, a lack of transactional
governance, or fraud.
SUSHI BAY: Last Restaurant Ordered to Go Into Liquidation
---------------------------------------------------------
News.com.au reports that a once-popular restaurant chain has ceased
to exist as of May 15 after its last remaining store was ordered to
go into liquidation.
Last month, news.com.au reported that national company Sushi Bay
was quietly collapsing, with four out of its five remaining stores
being subject to winding up orders in court.
On May 15, Sushi Bay's Northern Territory store in Darwin, the last
one standing, also went under.
According to the report, the Deputy Commissioner of Taxation began
winding-up proceedings against the Sushi Bay network and multiple
restaurants have fallen in quick succession.
These stores spanned across three states and territories - NSW, the
ACT and the Northern Territory.
At its peak, the company had a number of stores across Sydney,
including in Miranda, Rhodes, Penrith, Rouse Hill, Parramatta,
Carlingford, Charlestown, Glendale and Campbelltown. It also had
two stores outside Sydney in Shellharbour and Forster, as well as a
Canberra and Darwin store.
News.com.au notes that the Fair Work Ombudsman was pursuing the
company over breaches of the Fair Work Act, as well as personally
pursuing the owner and sole director, for allegedly underpaying 163
workers AUD650,000 over a number of years.
Christopher Palmer of insolvency firm O'Brien Palmer is the
appointed liquidator of all the restaurants, news.com.au notes.
Sushi Bay's Miranda store, in Sydney's south, which was registered
under the name Auskobay Pty Ltd, was ordered into liquidation in
February, the report recalls.
Then Sushi Bay's Campbelltown store, trading under Sushi Bay Pty
Ltd and is considered its main store, went bust in mid-March, while
its Canberra restaurant collapsed at the end of that month.
Then late last month, on April 21, Auskoja Pty Ltd, which was
trading as Sushi Bay Forster, Sushi Bay Glendale, Sushi Bay
Charlestown and Hinata Charlestown, also was forced to shut its
doors for good.
Finally, this week, Sushi Bay NT also liquidated, news.com.au
notes.
According to news.com.au, all stores except the Northern Territory
one were part of the Fair Work investigation, which is examining
allegations the hospitality business and its sole director, Yi
Jeong 'Rebecca' Shin, engaged in massive underpayment of
employees.
The regulator alleged last year that the companies underpaid 163
workers the amount of AUD656,141 between February 2016 and January
2020, news.com.au adds.
YLPG ADMINISTRATION: Second Creditors' Meeting Set for May 19
-------------------------------------------------------------
A second meeting of creditors in the proceedings of YLPG
Administration Pty Ltd, YLPG Tradesmen Pty Ltd, Your Local Plumbing
Group Pty Ltd, and Your Local Plumbing Group Melbourne Pty Ltd has
been set for May 19, 2023 at 2:00 p.m. via virtual meeting only.
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 18, 2023 at 4:00 p.m.
Aaron Torline of Slaven Torline was appointed as administrator of
the company on April 13, 2023.
=========
C H I N A
=========
ANBANG INSURANCE: Taiping Life Pays $431MM in Zheshang Bank Stake
-----------------------------------------------------------------
Caixin Global reports that Taiping Life Insurance Co. Ltd. paid
CNY3 billion (US$431 million) to acquire 6.33% of China Zheshang
Bank in one of the final steps in the disposal of assets of the
now-defunct private conglomerate Anbang Insurance Group.
Taiping Life purchased 1.35 billion of Zheshang's shares from
Traveler Automobile Group, becoming the third-largest shareholder
of the Hangzhou-based lender, Caixin relates citing data from an
asset auction platform operated by JD.com.
Anbang Insurance Group Co., Ltd., through its subsidiaries Anbang
Property Insurance Inc., Anbang Life Insurance Inc., Hexie Health
Insurance Co., Ltd, and Anbang Asset Management Co., Ltd., offered
property insurance, life insurance, health insurance, asset
management, insurance sales agency, and insurance brokerage
services. The company provides car insurance, accident insurance,
cargo transportation insurance, credit insurance, life-long
insurance, and medical insurance services.
As reported in the Troubled Company Reporter-Asia Pacific in
February 2018, The Strait Times related the Chinese government had
seized control of Anbang Insurance, the troubled Chinese company
that owns the Waldorf Astoria hotel in New York and other marquee
properties around the world, and charged its former chairman with
economic crimes. The Strait Times noted that the move is Beijing's
biggest effort yet to rein in a new kind of Chinese company, in
this case, one that spent billions of dollars around the world over
the past three years buying up hotels and other high-profile
properties. The Strait Times noted the move also caps the downfall
of Anbang leader Wu Xiaohui. Mr. Wu was later sentenced to 18 years
in prison for fraud and embezzlement, according to Reuters.
In July 2019, the China Banking and Insurance Regulatory Commission
(CBIRC) said the newly created Dajia Insurance Group will take over
several of Anbang Insurance's subsidiaries. According to Caixin,
the insurance regulator said that Dajia will receive Anbang's
stakes in its life insurance, annuity insurance and asset
management subsidiaries, and some of the assets of its property and
casualty insurance unit.
KWG GROUP: Defaults on US$119 Million Notes, Dollar Bonds
---------------------------------------------------------
Alice Huang at Bloomberg News reports that a Chinese developer
which sold a state-guaranteed onshore note in January has defaulted
on its dollar bonds, raising doubts about the efficiency of state
help for the troubled real estate sector.
Bloomberg relates that KWG Group Holdings - which builds high-rise
apartments, office buildings and shopping malls primarily in
China's larger cites - said it didn't pay US$119 million of
principal due on May 14 on a note, constituting a default. An event
of default has also occurred under the company's eight other dollar
bonds, according to an exchange filing.
Bloomberg says the liquidity strains at KWG, which sold a CNY700
million note guaranteed by state-owned China Bond Insurance,
illustrate ongoing difficulties for some developers at a time
new-home sales are slowing anew. A small group of builders has
issued such debt, and of them just CIFI Holdings Group later became
a defaulter.
KWG's payment miss "could cast doubt on the government's support of
privately owned developers, especially for other marginally solvent
names," said Bloomberg Intelligence analyst Kristy Hung. "It does
raise concerns on whether there could be more defaults to come."
Bloomberg relates that the default also highlights the restraints
of maturity extensions, which buy time for developers to improve
liquidity but often don't address underlying balance-sheet issues.
The note that KWG missed payment on was issued just eight months
ago as part of an extension exercise.
"The first wave of restructurings, when the crisis first kicked
off, was consisted mostly of amend-and-extend transactions that
kicked the can down the road for only 12 to 24 months" and "did
nothing to right-size balance sheets," Bloomberg quotes Brandon
Gale, head of Asia restructuring at Houlihan Lokey, as saying at a
media briefing last month. "So we believe that there'll be another
round of restructuring as these maturities come due in the next one
to two years."
According to Bloomberg, KWG said on May 14 it has started working
with advisers to explore a holistic solution for its offshore debt
"to secure the sustainable operations of the Group for the benefit
of all stakeholders."
Its debt-repayment difficulties could be an indication of
authorities prioritising construction projects being completed and
creditors having to wait in line for repayment. "Under the
requirement of local government policies, substantially most of the
Group's cash are under strict pre-sale cash escrow at designated
bank accounts in order to ensure completion of the properties under
development," according to KWG's filing cited by Bloomberg.
The builder last month disclosed it didn't pay CNY212 million of
principal due on bank and other borrowings, recalls Bloomberg. That
default triggered CNY31.2 billion of debt becoming repayable on
demand.
KWG separately said in its annual report that the firm faces
multiple uncertainties "which cast significant doubt on the Group's
ability to continue as a going concern," adds Bloomberg.
KWG Group Holdings Limited, formerly KWG Property Holding Limited,
-- https://www.kwggroupholdings.com/ -- is an investment holding
company principally engaged in the property development. The
Company operates its business through four segments. The Property
Development segment is engaged in the sale of properties. The
Property Investment segment is engaged in the leasing of
properties. The Hotel Operation segment is engaged in the operation
of hotels. The Property Management segment is engaged in the
provision of property management services. The Company's
subsidiaries include Guangzhou Hejing Real Estate Development
Limited, Guangzhou Hejing Meifu Real Estate Development Limited and
Guangzhou Hejing Yingfu Real Estate Development Limited.
=========
I N D I A
=========
ACHAL CASHEWS: ICRA Reaffirms B+ Rating on INR24cr Cash Credit
--------------------------------------------------------------
ICRA has reaffirmed ratings on certain bank facilities of Achal
Cashews Private Limited (ACPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term
Fund-based–
Term loan 1.71 [ICRA]B+ (Stable); reaffirmed
Long-term–
Fund based–
Cash Credit 24.00 [ICRA]B+ (Stable); reaffirmed
Long Term–
Unallocated
Limits 3.29 [ICRA]B+ (Stable); reaffirmed
Rationale
The rating continues to take into consideration the extensive and
long experience of the promoters of ACPL) in the cashew processing
industry. Further, the rating continues to derive comfort from its
established distribution channel across domestic and export markets
as well as relationship with farmers for procurement of raw cashew
nuts (RCNs).
The rating, however, remains constrained by the weak financial risk
profile of the company with a negative net worth, interest cover of
1.2 times and Total Debt/OPBIDTA of 9.8 times in FY2023 on a
provisional basis. The rating is also impacted by the company's
moderate scale of operations with a revenue base of around INR51.0
crore in FY2023 on a provisional basis.
Moreover, the company's revenue and profitability are impacted by
the intense competition owing to the fragmented nature of the
industry. Additionally, the entity's margins are vulnerable to
volatility in cashew price movements and forex fluctuations like
other industry players.
The Stable outlook reflects ICRA's expectation that ACPL would be
able to sustain its revenue along with limited profitability on the
back of extensive experience of its promoters.
Key rating drivers and their description
Credit strengths
* Long experience of promoters in cashew processing industry: The
promoters of ACPL have more than three decades of experience in the
cashew processing industry. Further, the company has established
relationship with its suppliers, resulting in ease of procurement
of RCNs.
* Diversified customer base: The company sells processed cashew
kernels to distributors, wholesalers, institutional buyers,
supermarkets and dealers in the international as well as domestic
markets. The company has a network of more than 50 distributors
across India. It has a long-term relationship with several buyers
in the domestic market, which deal exclusively with the Group.
Credit challenges
* Weak financial risk profile: ACPL's net worth is negative owing
to net losses from the past years (FY2018-21) and nominal accruals
in subsequent profitable years. The coverage indicators are modest
with an interest cover of 1.2 times and Total Debt/OPBIDTA of 9.8
times in FY2023 due to high debt levels and low margins. The total
debt of INR23.9 crore as on March 31, 2023, includes unsecured loan
of INR10.22 crore from the promoters, working capital borrowing of
INR10.0 crore and term
loan of INR3.64 crore.
* Margins exposed to volatility in cashew prices and foreign
exchange fluctuations: The procurement of RCN is seasonal. The
prices of cashew kernels and RCNs vary on a daily basis, depending
on the international demand-supply scenario, exposing the company's
margins to price fluctuations. Moreover, the availability of RCNs
is subject to agro-climatic risks. ACPL's operating margins
declined to 4.8% in FY2023 from 5.5% in FY2022 owing to a decrease
in price realisation. The operating margins are likely to remain at
around 5.0% in FY2024.
* Intense competition with low product differentiation and value
addition limit pricing flexibility: The company faces stiff
competition from many small units. The Indian players face
competition from other countries in the export market. The industry
is highly fragmented because of the low entry barriers owing to the
low capital and technology intensive nature of
operations. The industry is highly dependent on labour and is
affected by labour shortage issues from time to time. Lack of
product differentiation and intense competition restrict its
bargaining position and pricing flexibility.
Liquidity position: Stretched
The liquidity position of ACPL is stretched on account of nominal
profits and cash accruals against large repayments due in FY2024
and FY2025. The high working capital intensity has resulted in
limited buffer in its limits for any unanticipated requirement. The
company does not have any significant capex plan in the near term.
The capital subsidy, which the company has received recently from
the Government of Maharashtra towards capital investment in the
past, would provide liquidity support to an extent. However, going
forward, a continued and timely support from the promoters would
remain critical for the company in case of any cash flow mismatch.
Rating sensitivities
Positive factors – ICRA may upgrade the rating if the
profitability and cash accruals improve, leading to an improvement
in ACPL's net worth and liquidity on a sustained basis. Specific
credit metric that could result in a rating upgrade will be an
interest coverage of more than 2.0 times on a sustained basis.
Negative factors – Pressure on the rating could arise if the
margins decline significantly, leading to a deterioration in
coverage indicators or if there is a significant increase in
receivables, leading to a further weakening of ACPL's liquidity
position.
Incorporated in 1982, Achal Cashews Private Limited is involved in
processing organic as well as conventional RCNs to cashew kernels,
apart from processing small quantity of almonds. In addition, the
company sells cashew by-products such as cashew shells and peels.
It has an established processing capacity of ~16 metric tonnes per
day and generates almost its entire revenues from the domestic
market. The company is promoted by Mr. G. Giridhar Prabhu and his
family members, who are involved in cashew business through a
number of entities under the Achal Group. The Group comprises Achal
Industries Private Limited (which is also involved in processing
RCNs into finished cashew kernels as well as in trading of RCNs);
Achal Primenuts Private Limited, and Achal Farm Products Private
Limited (which manage retail outlets in Bangalore and Mangalore,
respectively).
AMON-RA IMPEX: CARE Keeps B- Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Amon-Ra
Impex Private Limited (AIPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 0.50 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 5.00 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 May 9, 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 25, 2023, April 4, 2023, April 14, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available
informationwhich 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).
Amon-Ra Impex Private Limited (ARIPL) was incorporated in 1995 and
is currently managed by Mr. Ashok Rajgor and Mrs. Kalpana Shah. The
company is engaged in trading of polyvinyl chloride tiles &
floorings to various dealers and distributors across Maharashtra.
The company is an exclusive distributor of various PVC tiles &
flooring product lines manufactured by Hanwha based in Korea (among
fortune 500 list) across India. The company has leased two
warehousing facilities located at Bhiwandi, Thane for the storage
of traded materials.
ARAVINDA STEELS: CARE Keeps B- Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sri
Aravinda Steels (SAS) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated May 6, 2022,
placed the rating(s) of SAS under the 'issuer non-cooperating'
category as SAS 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. SAS continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 22, 2023, April 1, 2023, April 11, 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).
Vijayawada based, Sri Aravinda Steels (SAS) was established in 2012
by Mr. Koteswara Rao, Mr. Srinivas Rao and family. The firm is
engaged in the wholesale and retail trading of reinforced steel
bars. SAS is a wholesale dealer of Rashtriya Ispat Nigam Limited
(Vizag Steel), Vizag Profiles Private Limited, Steel Exchange India
Limited and others in Andhra Pradesh region. The firm has its
customer base in the states of Andhra Pradesh, Telangana and
Karnataka.
BAKERI URBAN: Ind-Ra Corrects March 10, 2023 Rating Release
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) rectifies Bakeri Urban
Development Private Limited's (BUDPL) rating release published on
March 10, 2023 to correctly state the debenture issuance date in
the annexure.
The amended version is as follows:
India Ratings and Research (Ind-Ra) has assigned Bakeri Urban
Development Private Limited (BUDPL) a Long-Term Issuer Rating of
'IND BB'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR1.05 bil. Non-convertible debentures (NCD)* assigned with
IND BB/Stable rating; and
-- INR100 mil. Working capital demand loan assigned with IND BB/
Stable rating.
*Details in Annexure
ANALYTICAL APPROACH: Ind-Ra has taken a consolidated view of BUDPL
and its 100% parent Bakeri Projects Private Limited ('IND
BB'/Stable), while assigning the ratings, owing to the strong
legal, operational and financial linkages between them. BPPL has
also provided a corporate guarantee for BUDPL's NCDs.
Key Rating Drivers
Liquidity Indicator – Stretched: The ratings reflect BUDPL's
stretched liquidity position on account of the group's low sales
and collection velocity during the 12 months ended November 2022.
The agency expects the liquidity to remain under pressure if the
finished inventory is not liquidated, given the sizable committed
construction cost for under construction and new projects, along
with sizable scheduled debt repayments.
The group's sales and collection were at INR900 million during the
12 months ended November 2022, despite high completion status of
the projects and ready inventory. Furthermore, BPPL, through a
special purpose vehicle, entered into a Gift City project in
Ahmedabad for a total cost of INR4 billion, which is likely to have
high committed construction costs. BPPL has scheduled repayments of
INR520 million, INR550 million and INR450 million in FY23, FY24 and
FY25, respectively, while BUDPL has repayments of INR230 million,
INR190 million and INR250 million. The group has proposed term loan
for the new projects, which is yet to be sanctioned. BPPL had also
provided guarantee of INR2,040 million, largely for BUDPL's debt.
BUDPL is mainly engaged in plotted developments, which typically
have weak sales velocity albeit low development costs.
However, the ratings are supported by BUDPL's lower project
execution risk as it has achieved 76% construction completion on a
weighted average basis for its seven projects (three plotted
development, two residential, one commercial and one golf country
project) as of December 2022. Of these, only two projects Sylvan
golf & country (6% complete) and Serenity Proximus II (57%
complete) have sizeable construction costs left and management
expects these projects to be completed by March 2026 and December
2023, respectively.
The ratings also benefit from BUDPL's adequate revenue visibility
due to its high inventory. It has completed inventory of about
400,000 sf valued at INR1.5 billion, which along with a combined
collection velocity of INR758 million over the last 20 months ended
November 2022, provides adequate revenue visibility. Ind-Ra expects
BPPL's collection velocity to improve as the company liquidates
completed inventory and sells Sylvan golf and country project.
While the group is mainly concentrated in Gujarat as its main
market, the promoters' more than five decades of experience in the
real estate construction business has enabled the company to
establish a brand presence. The group has developed more than 25
million sf of plotted development and 17 million sf of constructed
properties.
Rating Sensitivities
Negative: Any delay in debt tie-up, leading to a significant time
or cost overrun in the ongoing projects, and lower-than-expected
sales volume or slow realization from bookings leading to pressure
on the liquidity, will be negative for the ratings.
Positive: Timely tie up of debt, successful project completion,
sale of inventory as planned, and a significant increase in sales
realization, leading to a strong cash flow visibility could lead to
a positive rating action.
Company Profile
Bakeri Group was set up in 1959 and has developed more than 25
million sf of plotted development and 17 million sf of constructed
properties in Ahmedabad.
BALAJI EDUCATIONAL: ICRA Cuts Rating on INR2.59cr Term Loan to B+
-----------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Balaji
Educational and Charitable Trust (BECT), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 1.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating downgraded
Overdraft from [ICRA]BB- (Stable) and
Facilities moved to the 'Issuer Not
Cooperating' category
Long-term 2.59 [ICRA]B+ (Stable) ISSUER NOT
Fund-based– COOPERATING; Rating
downgraded
Term Loans from [ICRA]BB- (Stable) and
moved to the 'Issuer Not
Cooperating' category
Long Term/ 3.41 [ICRA]B+ (Stable)/[ICRA]A4
Short Term– ISSUER NOT COOPERATING;
Proposed Long term rating downgraded
Unallocated from [ICRA]BB- (Stable) and
Limits moved to the 'Issuer Not
Cooperating' category and
short-term rating moved to
'Issuer Not Cooperating'
Category
Rationale
The rating downgrade is because of lack of adequate information
regarding BECT's performance and hence the uncertainty around its
credit risk. ICRA assesses whether the information available about
the entity is commensurate with its rating and reviews the same as
per its "Policy in respect of non-cooperation by a rated entity"
available at www.icra.in. The lenders, investors and other market
participants are thus advised to exercise appropriate caution while
using this rating as the rating may not adequately reflect the
credit risk profile of the entity, despite the downgrade.
As part of its process and in accordance with its rating agreement
with Balaji Educational and Cultural Trust, ICRA has been trying to
seek information from the entity so as to monitor its performance,
but despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite information
and in line with the aforesaid policy of ICRA, a rating view has
been taken on the entity based on the best available information.
Balaji Educational and Charitable Trust (BECT) was formed in March
2013 by Mr. Radheshyam Heda and the members of his family for
imparting education. The trust operates an engineering college in
the name of Jain College of Engineering and Research (JCER) and
offers civil, computer science, electronics and communication and
mechanical engineering courses. The college is approved by All
India Council for Technical Education (AICTE) and is affiliated to
Visvesvaraya Technological University (VTU). Along with the
engineering college, the trust also operates a school in the name
of Jain Heritage School (JHS), which offers education from Nursery
to Class V and is affiliated to Central Board of Secondary
Education (CBSE). The school and the engineering college started
operations from the academic year 2017-18 and 2018-19,
respectively. Both the school and college are located in Belgaum,
Karnataka.
BHAIRAVESHWARA COOL: CARE Assigns B Rating to INR8.90cr LT Loan
---------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Bhairaveshwara Cool Point Private Limited (BCPPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.90 CARE B; Stable Assigned
Facilities
Short Term Bank
Facilities 0.40 CARE A4 Assigned
Rationale and key rating drivers
The ratings assigned to the bank facilities of the BCPPL are
constrained by tightly matched cash accruals vis-à-vis debt
repayments, modest scale of operations, customer concentration risk
and competition from other local players. However, the rating
derives strength from experienced promoters albeit in different
line of business, established relationship with reputed clientele
base primarily Karnataka Cooperative Milk Producers Federation
Limited (KMF) and favourable outlook of the cold storage industry.
Further, CARE Ratings Limited (CARE) has also taken in account
minimum offtake arrangement of 70% of its capacity from KMF, which
would aid in improving the revenue and profitability going
forward.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Improvement in overall gearing below 1x on a sustained basis,
along with, improvement in scale of operations above INR5 crores
while maintaining PBILDT margins of above 40% on a sustained
basis.
Negative factors
* Decrease in scale of operations from present level on a sustained
basis.
* Any additional debt funded expenditure resulting in overall
gearing level above 2.00x on a sustained basis.
Analytical approach: Standalone
Outlook: Stable
CARE Ratings believes that BCPPL will continue to benefit from its
association with KMF, along with favorable long-term demand outlook
for cold storage industry.
Detailed description of the key rating drivers:
Key weaknesses
* Weak Financial Risk Profile: The debt repayments of BCCPL are
tightly matched against the cash accruals that the company is
expected to generate from its operations. Overall net worth of the
company also remains small and due to losses reported since
commencement of operations. The PBILDT margins also declined
marginally to 44.50% in FY23 from 47.13% in FY22 mainly
attributable to increase in power costs. However, due to timely
repayments made by the company the overall gearing improved to
1.16x as on March 31, 2023 as against 1.32x as on March 31, 2022.
* Customer Concentration Risk: The Company is exposed to customer
concentration risk as top five customers contributed 93.13% and
70.50% in total revenue in FY22 and FY23 respectively. Further, as
per terms with KMF, BCPPL has to allocate atleast 3500 MT of the
total capacity (70% of total capacity) for KMF products which
constrains the scope of BCPPL for diversification in different
customer and product lines. The customer concentration risk is
partially offset by established relationship of BCPPL with
clientele base and long term agreements with major customers.
* Competition from other local players: Despite being capital
intensive, the entry barrier for new cold storage is low, backed by
capital subsidy schemes of the government. As a result, the storage
business has become competitive as many local players are entering
the business.
Key strengths
* Experienced Promoters: The promoter, Mr. T.N. Paramesh, has
approximately two decades of business experience and has been
awarded a National Award from the Ministry of Micro, Small, and
Medium Enterprise of India for small-scale entrepreneurs. The
operations of the company is also managed by Mr Hemantha Gowda who
is an MBA by profession. The company belongs to Chaitra Groups and
has diversified business operations pertaining to irrigation
equipment and waste management.
* Improvement in Scale of operations albeit remaining small: The
scale of operations witnessed consistent improvement to INR4.00
crores in FY23 from INR3.29 crores in FY22 and INR2.75 in FY21.
CARE expects BCPPL to register sustained increase in its revenue
mainly on the backing of fixed escalation clauses in the agreement
with the parties, including KMF, and also the minimum offtake
arrangement of 70% of its capacity from KMF. Further dominant
position of KMF, through its brand 'Nandini', in the dairy space of
Karnataka and favourable demand outlook of the overall cold storage
industry, are also some of the factors that could enhance the
revenue and profitability of the company going forward.
Liquidity: Stretched
Liquidity is stretched as repayments are higher and increase in
capacity utilization is yet to be seen. The company has availed no
working capital limits. Cash and Bank balance as on March 31, 2023
stands at INR0.92 crores. The billing is done to clients on a
monthly basis and payments takes place within 45-60 days.
Bhairaveshwara Cool Point Pvt. Ltd. (BCPPL) was incorporated as a
private limited company in 2018, and commercial operations began in
April' 2020 and has built a cold storage unit of 5000MT capacity.
It primarily deals in cold storage of dairy products of Karnataka
Cooperative Milk Producers Federation Limited (KMF). Other
materials like pharmacies, ice cream, butter, vegetables, fruits,
and other food items are also stored for different clients. BCPPL
belongs to the Chaitra group, where other group companies is
involved in manufacturing of irrigation equipment and waste
management.
CHHATRAPATI SAMBHAJI: Ind-Ra Hikes Long Term Issuer Rating to BB-
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Chhatrapati
Sambhaji Raje Sakhar Udyog Limited's Long-Term Issuer Rating to
'IND BB-' from 'IND B+ (ISSUER NOT COOPERATING)'. The Outlook is
Stable.
The instrument-wise rating actions are:
-- INR75 mil. Fund-based working capital limits upgraded with IND
BB-/Stable/IND A4+ rating;
-- INR385^ mil. Term loans due on March 2032 upgraded with IND
BB-/Stable rating; and
-- INR40 mil. Proposed Term loans is withdrawn*.
^out of 410 million proposed term loan INR370 million has been
sanctioned.
*the company did not proceed with the instrument as envisaged
The upgrade reflects an improvement in CSRSUL's absolute EBITDA in
FY22 and FY23 over FY21, led by a bumper harvest of sugarcane and
no restriction on sugar exports under the Open General License
(OGL) scheme during FY22 and higher sugar realization in FY23
leading to an improvement in the gross interest coverage over FY21
levels.
Key Rating Drivers
Higher realization of sugar and an increased recovery rate of
sugarcane crushing led to CSRSUL's revenue growing to INR1,100
million, according to provisional FY23 numbers, and INR2,195.85
million in FY22 from INR1,064.42 million in FY21 with an absolute
EBITDA of around INR150 million and INR166.21 million from INR130
million. The recovery rate of sugarcane crushing was 11.12% in FY23
and 10.75% in FY22 (FY21: 10.45%). In FY22, the company's total
sugar sales increased 60% yoy to 54,277 metric tons, led by a
bumper harvest of sugarcane and no restriction on sugar exports
under the OGL scheme during the year. The total sugarcane crushing
witnessed an increase to 0.414 million tons in FY22 (FY21: 0.339
million tons). The scale of operations is medium.
Consequently, the interest coverage (operating EBITDA/gross
interest expense) improved to 3.04x in FY22 and is likely to have
stayed above FY21 levels in FY23 (FY21: 1.94x). The net leverage
(adjusted net debt/operating EBITDA) improved to 4.27x in FY22
(FY21: 7.87x). The improvement in the credit metrics in FY22 was on
account of a decline in the debt to INR807 million (FY21: INR1,023
million) due to a decline in the cash credit utilization. However,
Ind-Ra expects the company's net leverage to have weaken in FY23
and to continue to do so in FY24, owing to the loans availed for
capex in the distillery segment and an increase in the cash credit
utilization; the interest coverage is likely to reduce yoy in FY23
owing to this increase in debt but remain above FY21 levels.
The ratings factor in CSRSUL's modest EBITDA margins, which
contracted to 7.57% in FY22 (FY21: 12.21%), owing to the removal of
the export subsidy of sugar during the year. The return on capital
employed was 10.7% in FY22 (FY21: 8.1%). Ind-Ra expects the margins
to have improved yoy in FY23 due to the higher realizations of
sugar witnessed during the year. In FY24, the margins are likely to
further improve due to the full operations of CSRSUL's distillery
of 30 kilo liters per day (KLPD) which will be operational
end-April 2023 onwards to produce ethanol from molasses which
offers higher margins.
Liquidity Indicator – Poor: CSRSUL does not have any capital
market exposure and relies on banks and financial institutions to
meet its funding requirements. The company's cash flows from
operations turned positive to INR272.17 million in FY22 due to an
improvement in the working capital (FY21: negative INR67.11
million); however, the cash flow is likely to have turned negative
in FY23 due to an increase in sugar inventory. The company has
debt repayment obligations of INR34.81 million and INR62.41 million
in FY24 and FY25, respectively. The average maximum utilization of
CSRSUL's fund-based facilities was 18% over the 12 months ended
March 2023. The company's working capital cycle shortened to
negative 8 days in FY22 (FY21: 281 days) on account of a decrease
in the inventory days to 53 days (360 days) as there was no
restriction on sugar exports under the OGL scheme in FY22 and
CSRSUL exported higher quantity of sugar leading to decline in
inventory. The cash and cash equivalents stood at INR98.21 million
at FYE22 (FYE21: INR0.4 million).
The ratings, however, are supported by the company's promoters'
over two decades of experience in the sugar industry leading to
established relationships with customers and suppliers.
Rating Sensitivities
Positive: An improvement in the scale of operations, leading to an
improvement in the credit metrics and liquidity, on a sustained
basis, will be positive for the ratings.
Negative: A decline in the scale of operations, leading to
deterioration in the credit metrics and liquidity, on a sustained
basis, will be negative for the ratings.
Company Profile
CSRSUL, incorporated in 2000, has an integrated sugar plant for the
manufacturing of sugar, a co-generation unit of 6MW and ethanol
distillery unit of 60KLPD. It is located in Aurangabad,
Maharashtra.
FRIENDS PAPER: CARE Lowers Rating on INR16.69cr LT Loan to B-
-------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Friends Paper Mills (FPM), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 16.69 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Rationale and Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated May 17, 2022,
placed the rating(s) of FPM under the 'issuer non-cooperating'
category as FPM 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. FPM continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 2, 2023, April 12, 2023, April 22, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of FPM have been
revised on account of non-availability of requisite information.
Friends Paper Mills (FPM) was established in December, 2016 as a
partnership firm and is currently being managed by Mr. Sujeet Kumar
Julka, Mr. Rohit Sharma, Mr. Kashish Julka, Mr. Shahbaz Singh, Mr.
Ramesh Kumar Sharma and Mr. Avtar Singh, as its partners. The firm
is engaged in the manufacturing of craft papers at its
manufacturing facility located in Pathankot, Punjab. The firm sells
the finished goods to various authorised dealers based in Punjab,
Himachal Pradesh and Jammu & Kashmir. Besides FPM, some of the
partners are also associated with another group concerns namely,
Amandeep Hospital and Sharma Diagnostic Centre, Batala.
GO FIRST: Backs Emergency Arbitration in Pratt & Whitney Dispute
----------------------------------------------------------------
The Economic Times reports that Go Airlines said on May 15 it
needed an emergency arbitration in its dispute with engine maker
Pratt & Whitney to be enforced in Delaware to prevent it from going
out of business.
ET says the Indian airline blames the Raytheon Technologies-owned
engine maker for its financial woes and recent bankruptcy filing,
arguing that the U.S. firm supplied "faulty" engines and failed to
replace them on time, resulting in the grounding of half of its
fleet.
Go Airlines, also known as Go First, has approached a district
court in Delaware to enforce an arbitration order made in Singapore
in March, which ordered Pratt to assist the airline and supply
serviceable spare engines, ET relates.
Last week, Pratt & Whitney argued in the Delaware court that Go
First's claim was "unfounded" and the dynamics of the dispute had
changed. The engine maker said it faces more risks after Go First
was granted bankruptcy protection and asked the court to put on
hold or dismiss the airline's request.
Pratt's argument "fails," Go Airlines said in a filing with the
Delaware court, ET relays.
There is a very real danger that Go First will go out of business
unless relief is given, at least in respect of delivery of engines,
the airline quoted the emergency arbitrator as saying in the
filing.
The stay that Pratt sought would cause the harm that the emergency
arbitration awards were designed to prevent, the filing added, ET
relays.
About Go First
Go First, formerly known as GoAir, was an Indian ultra-low-cost
airline based in Mumbai, Maharashtra. Go First was incorporated in
April 2004 as GoAir and commenced flight operations in November the
following year. Its inaugural flight was from Mumbai to Ahmedabad.
The airline is owned by the Wadia Group.
As reported the Troubled Company Reporter-Asia Pacific on May 3,
2023, Go First filed an application for voluntary insolvency
resolution proceedings before National Company Law Tribunal (NCLT)
on May 2.
The company said the filing with the NCLT comes after Pratt &
Whitney, the exclusive engine supplier for the airline's Airbus
A320neo aircraft fleet, refused to comply with an order to release
engines to the airline that would have allowed it return to full
operations.
On May 10, the National Company Law Tribunal (NCLT) accepted Go
First's voluntary insolvency petition. The NCLT bench appointed
Abhilash Lal as the interim resolution professional to look after
the affairs of Go First and also suspended its board as part of the
insolvency resolution process.
GREEN GOLD: Ind-Ra Assigns BB Non-Convertible Debt Rating
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated Green Gold Animation
Private Limited's (GGAPL) proposed non-convertible debentures as
follows:
-- INR200 mil. Proposed non-convertible debentures (NCDs)
assigned with IND BB/Stable rating.
Analytical approach: To arrive at the ratings, Ind-Ra has taken
consolidated view of GGAPL and Megraj Holdings Private Limited
(MHPL), along with GGAPL's wholly owned subsidiaries Green Gold
Licensing & Merchandising Pvt. Ltd. ,Green Gold Entertainment Pte.
Ltd. and Green Gold Corporation US, Goldon Robot Animations P. Ltd.
MHPL is the company incorporated for the strategic purpose of
raising NCDs and will eventually be merged with GGAPL.
GGAPL's promoter Rajiv Chilakala has planned to acquire the entire
50% stake of another promoter Samir Jain in GGAPL and for such
payment, he plans to the raise cash from ADM Capital by issuing
NCDs in MHPL; MHPL will be merged in GGAPL in nine-months' time
from the issue of debenture from May 2023 and the whole interest
and debenture repayment liability will be borne by GGAPL. As of
now, GGAPL has no adequate source for the bullet repayment of
proposed NCDs although it is looking for a strategic investment or
private equity for the repayment. Both the companies have common
promoters.
Key Rating Drivers
Liquidity Indicator – Stretched: GGAPL's average maximum
utilization of the fund-based working capital limits was 42% for
the 12 months ended March 2023. At FYE22, the company's
consolidated free cash and cash equivalents stood at INR33.91
million (FYE21: INR45.03 million) and the cash flow from operating
activities stood at INR224.30 million (INR62.88 million).
Furthermore, its fixed deposits stood at INR310.37 million at FYE22
(FYE21: INR118.85 million). GGAPL plans to incur an overall capex
of around INR200 up to FY26. The company has to pay an annual
interest of around INR110 million in FY25 and FY26. Ind-Ra expects
the liquidity to remain stretched over the medium term, considering
the maturity of the proposed NCDs of INR1,600 million, along with
the redemption premium of INR500 million over the three years
ending May 2026.
Modest Credit Metrics: The company's net leverage (adjusted net
debt/operating EBITDAR) turned negative at 0.12x in FY22 (FY21:
0.16x), while the gross interest coverage (operating EBITDAR/gross
interest expense + rents) improved to 53.77x (41.19x), due to the
low interest costs of INR2.06 million (INR3.97 million). Its credit
metrics are likely to decline when the proposed NCDs will be issued
as the interest cost will increase. Additionally, the debenture's
coupon rate is 7%; however, with the effect of the redemption
premium, the effective internal rate of return would be 17%.
Established Track Record of Operations: GGAPL has been an animation
player for over two decades and has diversified its portfolio in
different services such as content production and its sale,
animation, licensing, merchandising, gaming, ed-tech and royalty,
among others. In FY22, GGAPL entered into the VFX, studio services
and live action space. It has produced several popular animated
series such as Chhota Bheem, Vikram Betaal and Mighty Raju.
Adequate Revenue Visibility: GGAPL's consolidated revenue was
INR863 million in FY22 (FY21: INR822 million). The revenue is
likely to be stable over the near-to-medium term due to the limited
number of competitors and a huge popularity of the company's
animated series in India. Additionally, GGAPL has a diversified
portfolio of various services, thereby giving comfortable revenue
visibility over the short-to-medium term.
Strong Customer Profile: The top four customers of GGAPL (Turner
Broadcasting System Inc., Viacom 18 Media Private . Limited,
Netflix Inc., ARHA MEDIA & BROADCASTING PRIVATE LIMITED)
contributed more than 60% to GGAPL's consolidated revenue in FY22;
Ind-Ra expects the trend to have continued in FY23. Considering the
experience of all these customers, GGAPL has an opportunity to grow
in line with customer content requirements.
Healthy EBITDA Margin: GGAPL's consolidated EBITDA margin was
healthy at 15.89% in FY22 (FY21: 19.34%). The margins declined yoy
in FY22, mainly due to a lack of adequate operations during the
second wave of COVID. The margins further declined to 8% in 9MFY23
due to an increase in overheads; however, it recovered during
4QFY23 as the company completes most of its work during the last
quarter of each financial year. The return on capital employed was
19.9% in FY22 (FY21: 25.4%; FY20: 28.5%).
Rating Sensitivities
Positive: A substantial improvement in the liquidity, an advance
arrangement of refinancing, a significant increase in the revenue,
with strong credit metrics will lead to a positive rating action.
Negative: Substantial liquidity deterioration, a significant
decrease in the revenue and operations and continued modest credit
metrics will lead to a negative rating action.
Company Profile
GGAPL is a Hyderabad-based animation company, with offices in
India, Singapore, Philippines and the US. It is known for creating
the Chhota Bheem television series and the Krishna film series. The
company was founded by Rajiv Chilaka in January 2001.
GSCO INFRASTRUCTURE: ICRA Withdraws D Rating on INR40cr LT Loan
---------------------------------------------------------------
ICRA has withdrawn the ratings assigned to the bank facilities of
GSCO Infrastructure Pvt. Ltd at the request of the company and
based on the No Due Certificates/Closure Certificate received from
the bankers. The Key Rating Drivers, Liquidity Position, Rating
Sensitivities, Key Financial indicators have not been captured as
the rated instruments are being withdrawn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 6.40 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Withdrawn
Cash Credit
Long Term- 40.00 [ICRA]D; ISSUER NOT COOPERATING;
Non-Fund Based Withdrawn
Incorporated in 2004, GSCO is promoted by Mr Gurmeet Singh who has
been in the construction business since the last three decades. The
promoters were earlier running the business through a proprietary
concern M/s. Gurmeet Singh & Co which was taken over by GSCO in
2008. GSCO undertakes projects in irrigation, mining and road
sectors.
GYPSY EXPORTS: CARE Keeps B- Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Gypsy
Exports (GE) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 3.40 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 2.70 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 16, 2022,
placed the rating(s) of GE under the 'issuer non-cooperating'
category as GE 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. GE continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 01, 2023, April 11, 2023, April 21, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Gypsy Exports (GEX) is a partnership firm established in 1991. It
is currently being managed by Mr. Anil Behl, Mrs. Monika Behl and
Mrs. Neena Behl as partners. GEX is engaged in the manufacturing of
fabric and readymade garments for women, men and kids at its
manufacturing facility located at Ludhiana, Punjab. Knitted fabric
manufactured by the firm is used for captive consumption in the
manufacturing of the garments. The product line of the firm mainly
comprises t-shirts and sweat shirts.
HI-TRAC MANPOWER: CARE Keeps B Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Hi-Trac
Manpower Services Private Limited (HMSPL) continues to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 24.70 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated May 11, 2022,
placed the rating(s) of HMSPL under the 'issuer non-cooperating'
category as HMSPL 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. HMSPL continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 27, 2023, April 6, 2023, April 16, 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).
Gurugram-based (Haryana), Hi-Trac Manpower Services Private Limited
(Hi-Trac) (CIN No. U74920HR2004PTC035356) was incorporated in
April, 2004 by Mr. Satpal Singh and Mrs. Sarita Singh. The company
provides manpower and staffing services which includes office
assistance, upholstery cleaning, IT service management,
housekeeping, office management, gardening, pest control,
contractual manpower (both technical and non-technical staff), etc.
Also, the company is engaged in renting cars to its existing
corporate clients. The company is an ISO 9001-2015 certified
services provider and having its operations across India. The
company is having an associate concern namely; "Resource Care
Services Private Limited" (incorporated in 2014); engaged in same
line of business.
IL&FS FINANCIAL: Ind-Ra Corrects November 17, 2022 Rating Release
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) rectifies IL&FS Financial
Services Ltd.'s (IFIN) rating release published on November 17,
2022 to include the Liquidity Indicator and ESG issues.
The amended version is as follows:
India Ratings and Research (Ind-Ra) has affirmed IL&FS Financial
Services Ltd.'s (IFIN) Long-Term Issuer Rating at 'IND D'.
The instrument-wise rating actions are:
-- INR49.850 bil. Non-convertible debentures* (NCDs) (Long-term)
affirmed with IND D rating;
-- INR11.0 bil. Subordinated debt* (Long-term) affirmed with IND
D rating;
-- INR7,587.5 bil. Bank loans (Long-term) affirmed with IND D
rating; and
-- INR7.0 bil. Short-term debt/commercial paper programme^
(Short-term) affirmed with IND D rating.
^Unutilized
*Details in annexure
Key Rating Drivers
The ratings continue to reflect IFIN's missed payments on
contractual debt obligations. The IL&FS group is functioning under
a resolution framework wherein payments are made mostly to meet
operational expenses to ensure the going concern status of the
company. The group remains in a cash conserving mode while making
efforts towards asset monetization.
Liquidity Indicator – Poor: IFIN has been in continuous default
since September 2018, and the liquidity is poor.
Rating Sensitivities
Positive: Timely debt servicing for at least three consecutive
months could result in a positive rating action.
Company Profile
IFIN was a non-banking finance company that provided credit and
other services such as debt syndication and corporate advisory.
INFRASTRUCTURE LEASING: Ind-Ra Corrects Nov. 17 Rating Release
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) rectifies Infrastructure
Leasing & Financial Services Limited's (IL&FS) rating release
published on November 17, 2022 to include the ESG issues and
information regarding the company being non-cooperative with
another rating agency.
The amended version is as follows:
India Ratings and Research (Ind-Ra) has affirmed Infrastructure
Leasing & Financial Services Limited's (IL&FS) Long-Term Issuer
Rating at 'IND D'.
The instrument-wise rating actions are:
-- INR93,600.8 bil. Long-term debt* (Long term) affirmed with IND
D rating;
-- INR1.0 bil. Subordinated debt^ (Long term) affirmed with IND D
rating;
-- INR12.250 bil. Short-term debt (Short term) affirmed with IND
D rating; and
-- INR3.0 bil. Bank loans (Long term) affirmed with IND D rating;
^Unutilized
*Details in annexure
Key Rating Drivers
The ratings continue to reflect IL&FS's missed payments on
contractual debt obligations. The IL&FS group has been functioning
under a resolution framework, wherein payments are made mostly to
meet operational expenses to ensure the going concern status of the
company. IL&FS remains in a cash conserving mode while continuing
to make efforts towards asset monetization.
In the company's media release dated March 29, 2022, the company
announced that INR550 billion of debt has been resolved. The group
estimates to resolve around INR610 billion of debt.
Liquidity Indicator – Poor: IL&FS has been in continuous default
since September 2018, and the liquidity is poor.
Rating Sensitivities
Positive: Timely debt servicing for at least three consecutive
months could result in a positive rating action.
Company Profile
IL&FS operated in India's infrastructure development space. The
company had restructured its business in FY08 and converted itself
into a holding company after demerging its lending and advisory
business to its subsidiary, IL&FS Financial Services Ltd. ('IND
D'). The company received a core investment company license in
September 2012.
JAGDAMBAY EXPORTS: CARE Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Jagdambay
Exports (JE) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.57 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 May 12, 2022,
placed the rating(s) of JE under the 'issuer non-cooperating'
category as JE 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. JE 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.
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).
Jagdambay Exports (JE), was established in May, 1993 as a
proprietorship firm by Mr. Balwinder Kumar Sharma (proprietor) and
his brothers Mr. Pawan Kumar Sharma & Mr. Suraj Prakash Sharma. The
firm is engaged in the manufacturing of readymade garments and
knitted fabrics at its manufacturing facility located at Ludhiana,
Punjab. JE is an export-oriented unit with majority of its sales
comprising of exports to various countries. The product line of the
firm comprises of readymade garments and knitted fabrics which
cater to baby wear segment with age from 0 to 36 months.
JAI MAHARASHTRA: ICRA Keeps D Debt Rating in Not Cooperating
------------------------------------------------------------
ICRA has retained the rating for the bank facilities of Jai
Maharashtra Nagar Development Private Limited in the 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER
NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non-convertible 78.00 [ICRA]D; ISSUER NOT COOPERATING;
debenture (NCD) rating continues to remain under
Issuer Not Cooperating category
ICRA has been trying to seek information from the entity to monitor
its performance. Further, ICRA has been sending repeated reminders
to the entity for payment of surveillance fee that became due.
Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA based on best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating, as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Jai Maharashtra Nagar Development Private Limited is a special
purpose vehicle promoted by Shubh Group, a Mumbai-based developer
group, for the redevelopment of the Jai Maharashtra Nagar
Co-operative Housing Federation Limited—a federation of eight
societies in Mumbai. The redevelopment project entailed
rehabilitation of the existing society tenants as a part of the
free-sale component of the project, with a sale component of about
1.23 million square feet of saleable area. As on date, the
redevelopment agreement stands terminated.
JYOTIRMAYEE FOODS: CARE Keeps B+ Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Jyotirmayee
Foods Private Limited (JFPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 22.72 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 2, 2022,
placed the rating(s) of JFPL under the 'issuer non-cooperating'
category as JFPL 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. JFPL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 18, 2023, March 28, 2023, April 7, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Andhra Pradesh based, Jyotirmayee Foods Private Limited (JFPL) is a
private Limited Company, incorporated in the year 2007, started its
commercial operations from June 2011 and it has solvent extraction
plant located at Surampalem road, Peddapuram, East Godavari. JFPL
was promoted by Mr. R H Ramgopal along with his family members. The
company is engaged in production of rice bran edible crude oil. The
company sells its products i.e. Rice bran crude oil and de-oiled
bran to the refineries located in Andhra Pradesh and Telangana
states.
KAVITA EXIM: CARE Keeps D Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Kavita Exim
Private Limited (KEPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated May 12, 2022,
placed the rating(s) of KEPL under the 'issuer non-cooperating'
category as KEPL 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. KEPL 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.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Delhi based Kavita Exim Private Limited (KEPL) was incorporated by
Mr. Ashu Jain and his family members in October, 2013. The company
has succeeded erstwhile business operations of two proprietorship
entities– Kavita Overseas and Sonia Enterprises. Both the firms
were in the industry for more than a decade. KEPL is engaged in
trading of fabrics (mostly cotton based). Also, the company is
engaged in plastic printing of clothes which is mainly done through
job work. KEPL procures the fabrics from manufacturers located
across India, predominantly from Mumbai. The company caters to
wholesalers' located Delhi, Punjab, and Rajasthan etc. The company
operates its business in the name "Kavita Exim" through its three
showrooms located Gandhi Nagar, Delhi.
KONER FOOD: CARE Keeps B- Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Koner Food
Product (KFP) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.90 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 0.45 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 7, 2022,
placed the rating(s) of KFP under the 'issuer non-cooperating'
category as KFP 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. KFP continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
January 21, 2023, January 31, 2023, February 10, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Koner Food Product (KFP) was established in the July 2015. The firm
is engaged in manufacturing of raw rice and parboiled rice. The
milling unit of KFP is located at Burdwan, West Bengal with
processing capacity of 5,400 Metric Ton Per Annum (MTPA). The firm
is promoted by Burdwan based Mr. Uttam Koner, who has a long
experience in the rice milling industry. KFP procures paddy from
farmers & local agents and sells its products through the
wholesalers and distributors located in West Bengal. The Firm sells
the products under the brand name 'Trishool'. The firm was engaged
in the expansion of its rice milling unit with an additional
proposed installed capacity of 14,400 metric tonne per annum
(MTPA). The project was estimated to be set up at a cost of INR8.03
crore, to be financed by way of partner's contribution of INR3.13
crore and term loan of INR4.90 crore. The term loan was under
consideration by the banker. The project was expected to be
operational from February, 2019. Mr. Uttam Koner (aged, 58 years)
having more than two decade of experience, Mr. Priyabrata Koner
(aged, 32 years) having 06 years of experience and Mr. Arnab Koner
(aged, 25 years) having 04 years of experience in similar line of
business, looks after the day to day operations of the firm along
with other partners and a team of persons who have rich experience
in the similar line of business.
MAA CHANDI: CARE Keeps B- Debt Ratings in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Maa Chandi
Rice Industries (MCRI) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.25 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Long Term/Short 2.75 CARE B-; Stable/CARE A4;
Term Bank ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 28, 2022,
placed the rating(s) of MCRI under the 'issuer non-cooperating'
category as MCRI 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. MCRI 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).
Analytical approach: Standalone
Outlook: Stable
Maa Chandi Rice Industries was established in April 2008 with an
objective to enter into the rice milling and processing business.
The manufacturing unit of the entity is located at Bhothli Road,
Kurud, Dist: Dhamtari, Chhattisgarh with an installed capacity of
19200 metric tons per annum (MTPA). The entity is procuring raw
paddy from the local farmers and small paddy agents. The entity is
also engaged in custom milling activities of around 50% of its
capacity. Mr. Roshan Chandrakar (Partner) along with Mrs. Seema
Chandrakar (Partner) who has around 10 years and 12 years of
experiences, respectively, in similar line of business, are looking
after the day to day operation of the entity.
MAHAMAYA FOODS: CARE Keeps B- Debt Ratings in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Mahamaya
Foods (MF) 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
Long Term/Short 2.00 CARE B-; Stable/CARE A4;
Term Bank ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated April 28, 2022,
placed the rating(s) of MF under the 'issuer non-cooperating'
category as MF 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. MF 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).
Mahamaya Foods has been established in April 2015 with an objective
to enter into the rice milling and processing business. The
manufacturing unit of the entity is located at Dhamtari District,
Chhattisgarh which is in close proximity to the paddy growing areas
of the state. Mr. Roshan Chandrakar (Partner) along with Mrs.
Devbati Chandrakar (Partner) who has around 10 years and 12 years
of experiences, respectively, in similar line of business, are
looking after the day to day operation of the entity.
MEGRAJ HOLDINGS: Ind-Ra Assigns BB Non-Convertible Debt Rating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated Megraj Holdings
Private Limited's (MHPL) proposed non-convertible debentures as
follows:
-- INR1.40 bil. Proposed non-convertible debentures (NCDs)
assigned with IND BB/Stable rating.
Analytical approach: To arrive at the ratings, Ind-Ra has taken
consolidated view of MHPL and Green Gold Animations Private Limited
(GGAPL), along with GGAPL's wholly owned subsidiaries Green Gold
Licensing & Merchandising Pvt. Ltd., Green Gold Entertainment Pte.
Ltd. and Green Gold Corporation US, Goldon Robot Animations P. Ltd.
MHPL is the company incorporated for the strategic purpose of
raising NCDs and will eventually be merged with GGAPL.
GGAPL's promoter Rajiv Chilakala has planned to acquire the entire
50% stake of another promoter Samir Jain in GGAPL and for such
payment, he plans to the raise cash from ADM Capital by issuing
NCDs in MHPL; MHPL will be merged in GGAPL in nine-months' time
from the issue of debenture from May 2023 and the whole interest
and debenture repayment liability will be borne by GGAPL. As of
now, GGAPL has no adequate source for the bullet repayment of
proposed NCDs although it is looking for a strategic Investment or
private equity for the repayment. Both the companies have common
promoters.
Key Rating Drivers
Liquidity Indicator – Stretched: GGAPL's average maximum
utilization of the fund-based working capital limits was 42% for
the 12 months ended March 2023. At FYE22, the company's
consolidated free cash and cash equivalents stood at INR33.91
million (FYE21: INR45.03 million) and the cash flow from operating
activities stood at INR224.30 million (INR62.88 million).
Furthermore, its fixed deposits stood at INR310.37 million at FYE22
(FYE21: INR118.85 million). GGAPL plans to incur an overall capex
of around INR200 up to FY26. The company has to pay an annual
interest of around INR110 million in FY25 and FY26. Ind-Ra expects
the liquidity to remain stretched over the medium term, considering
the maturity of the proposed NCDs of INR1,600 million, along with
the redemption premium of INR500 million over the three years
ending May 2026.
Modest Credit Metrics: GGAPL's net leverage (adjusted net
debt/operating EBITDAR) turned negative at 0.12x in FY22 (FY21:
0.16x), while the gross interest coverage (operating EBITDAR/gross
interest expense + rents) improved to 53.77x (41.19x), due to the
low interest costs of INR2.06 million (INR3.97 million). Its credit
metrics are likely to decline when the proposed NCDs will be issued
as the interest cost will increase. Additionally, the debenture's
coupon rate is 7%; however, with the effect of the redemption
premium, the effective internal rate of return would be 17%.
Established Track Record of Operations: GGAPL has been an animation
player for over two decades and has diversified its portfolio in
different services such as content production and its sale,
animation, licensing, merchandising, gaming, ed-tech and royalty,
among others. In FY22, GGAPL entered into the VFX, studio services
and live action space. It has produced several popular animated
series such as Chhota Bheem, Vikram Betaal and Mighty Raju.
Adequate Revenue Visibility: GGAPL's consolidated revenue was
INR863 million in FY22 (FY21: INR822 million). The revenue is
likely to be stable over the near-to-medium term due to the limited
number of competitors and a huge popularity of the company's
animated series in India. Additionally, GGAPL has a diversified
portfolio of various services, thereby giving comfortable revenue
visibility over the short-to-medium term.
Strong Customer Profile: The top four customers of GGAPL (Turner
Broadcasting System Inc., Viacom 18 Media Private . Limited,
Netflix Inc., ARHA MEDIA & BROADCASTING PRIVATE LIMITED)
contributed more than 60% to GGAPL's consolidated revenue in FY22;
Ind-Ra expects the trend to have continued in FY23. Considering the
experience of all these customers, GGAPL has an opportunity to
grow in line with customer content requirements.
Healthy EBITDA Margin: GGAPL's consolidated EBITDA margin was
healthy at 15.89% in FY22 (FY21: 19.34%). The margins declined yoy
in FY22, mainly due to a lack of adequate operations during the
second wave of COVID. The margins further declined to 8% in 9MFY23
due to an increase in overheads; however, it recovered during
4QFY23 as the company completes most of its work during the last
quarter of each financial year. The return on capital employed was
19.9% in FY22 (FY21: 25.4%; FY20: 28.5%).
Rating Sensitivities
Positive: A substantial improvement in the liquidity, an advance
arrangement of refinancing, a significant increase in the revenue,
with strong credit metrics will lead to a positive rating action.
Negative: Substantial liquidity deterioration, a significant
decrease in the revenue and operations and continued modest credit
metrics will lead to a negative rating action.
Company Profile
GGAPL is a Hyderabad-based Indian Animation company, with offices
in India, Singapore, Philippines and the US. It is known for
creating the Chhota Bheem television series and the Krishna film
series. The company was founded by Rajiv Chilakapudi in January
2001.
MOHINDRA COACHES: CARE Keeps B Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Mohindra
Coaches (India) Private Limited (MCPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 2.50 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 6.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated May 12, 2022,
placed the rating(s) of MCPL under the 'issuer non-cooperating'
category as MCPL 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. MCPL 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.
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).
Analytical approach: Standalone
Outlook: Stable
Jaipur (Rajasthan) based MCIPL was incorporated in 2008 by Saluja
family. MCIPL is mainly engaged in the business of building bus
bodies on the automobile chassis and has been a part of the Indian
bus body building industry for around four decades. The company's
plant is located in V.K.I. area, Jaipur. It builds bus bodies for
government as well as private players mainly in the states of
Rajasthan, Haryana, Uttar Pradesh, Punjab and Gujarat. It builds
bus bodies of air conditioned (AC) Sleeper, NonAC Sleeper buses, AC
& Non-AC Seater buses and of Minibuses. Production process involves
receiving chassis from the manufacturer and subsequent mounting of
the body on the chassis.
NJR CONSTRUCTIONS: Ind-Ra Withdraws BB+ Long Term Issuer Rating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed N J R
Constructions Private Limited's (NJR) Long-Term Issuer Rating at
'IND BB+' and has simultaneously withdrawn it. The Outlook was
Stable.
The instrument-wise rating actions are:
-- The 'IND BB+'/Stable/'IND A4+' rating on INR284.1 mil.
Fund-based limits* affirmed and withdrawn; and
-- The 'IND A4+' rating on INR550 mil. Non-fund-based limits**
affirmed and withdrawn.
* Affirmed at 'IND BB+'/Stable/'IND A4+' before being withdrawn
**Affirmed at 'IND A4+' before being withdrawn
Ind-Ra is no longer required to maintain the ratings, as the agency
has received a no-objection certificate from all lenders. This is
consistent with Ind-Ra's Policy on Withdrawal of Ratings. Ind-Ra
will no longer provide analytical and rating coverage for the
company.
Key Rating Drivers
The rating reflects NJR's medium scale of operations, as indicated
by revenue of INR4,219 million in FY22 (FY21: INR3,197 million).
The revenue increased due to an increase in the number of orders
executed by the company. In FY23 (provisional numbers), the company
recorded a revenue of INR4,331.87 million.
The ratings are constrained by the volatility in raw material
costs, which could impact NJR's margins. Furthermore, NJR is
exposed to geographical risk as it operates predominantly in
Telangana and Andhra Pradesh, and any adverse developments in these
regions could adversely impact the company.
The ratings are supported by NJR's healthy EBITDA margins. The
EBITDA margin rose marginally to 7.12% in FY22 (FY21: 6.49%), with
the absolute EBITDA increasing to INR300.26 million (INR207.38
million). The ROCE stood at 24.7% in FY22 (FY21: 21.5%). The EBITDA
margin of the company was 6.7% in FY23. The agency expects the
company's profitability to remain at similar levels in FY24 due to
stable operating levels.
The ratings benefit from NJR's strong credit metrics due to the
healthy margins. The metrics improved in FY22 due to an increase in
the absolute EBITTDA. The gross interest coverage ratio
(EBITDA/interest cost) was 5.01x in FY22 (FY21: 3.97x) and the net
leverage (net debt/ EBITDA) was 0.91x (1.08x). The credit metrics
are likely to have remained strong but deteriorated slightly in
FY23 owing to the marginal fall in profitability
Liquidity Indicator - Adequate: NJR had free cash and cash
equivalents of INR97.67 million in FY22 (FY21: INR72.29 million).
Its average maximum fund-based limit utilization was around 50% for
the 12 months ended February 2023. The net working capital cycle
of NJR turned negative at 23 days in FY22 (FY21: 20 days) on
account of an increase in payable days to 63 days (49 days). The
company's cash flow from operations turned positive at around
INR217 million in FY22 (FY21: INR162 million) due to the increase
in the absolute EBITDA.
The ratings are also supported by the promoters' experience of over
three decades in civil construction.
Company Profile
NJR is a contractor engaged in the construction of buildings,
roads, bridges, and other civil works. Initially started as a
proprietorship concern in 1990, the company was incorporated in
2009.
SAI KRIPA: CARE Keeps D Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sai Kripa
Industries (SKI) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.69 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated March 3, 2022,
placed the rating(s) of SKI under the 'issuer non-cooperating'
category as SKI had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. SKI continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
January 17, 2023, January 27, 2023, February 6, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Jabalpur-based (Madhya Pradesh), SKI was established as
proprietorship firm in March 2015 by Mr. Narendra Kumar Bulani,
having more than 3 decades of experience in rice processing
industry.
SEAWARD EXPORTS: ICRA Withdraws B+ Rating on INR10cr LT Loan
------------------------------------------------------------
ICRA has withdrawn the ratings assigned to the bank facilities of
Seaward Exports Private Limited (SEPL) at the request of the
company and based on the No Objection Certificate/Closure
Certificate received from its banker. However, ICRA does not have
information to suggest that the credit risk has changed since the
time the rating was last reviewed. The Key Rating Drivers,
Liquidity Position, Rating Sensitivities have not been captured as
the rated instruments are being withdrawn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 10.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Withdrawn
Cash Credit
Incorporated in the year 2001, Seaward Exports Private Limited
(SEPL) is a private limited company engaged in the business of
processing of Natural Stones mainly Sandstone. The company
manufactures tiles and slabs of different colors, designs, shapes
and sizes which are mainly used for wall cladding, interior
flooring, exterior flooring, stairs, etc.The promoters of the
company have been in the stone industry for more than twenty years.
SHRIGEE AGRO: CARE Lowers Rating on INR20cr LT Loan to B-
---------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Shrigee Agro Foods (SAF), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 20.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Rationale and Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated May 16, 2022,
placed the rating(s) of SAF under the 'issuer non-cooperating'
category as SAF 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. SAF continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 1, 2023, April 11, 2023, April 21, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of SAF have been
revised on account of non-availability of requisite information.
Uttarakhand based Shrigee Agro Foods (SAF) was established in
September, 2017 as a partnership firm and started its commercial
operations from October, 2018. The firm is currently managed by Mr.
Devinder Singh, Mr. Gurdayal Singh, Mr. Jitesh Goyal and Mr. Ritesh
Kumar sharing profits & losses equally. The firm is engaged in the
milling, processing and trading of paddy) from its manufacturing
facility located in Sitarganj, Uttarakhand. The firm is having four
associate concerns namely; "G. R. Rice Mill" (established in 1995),
"Bhagwati Agro Foods" (established in 2016), "GLD Agri Foods"
(established in 2014) and "Narayan Paddy Product" (established in
2016) engaged in rice milling business respectively.
SREELEKSHMI CASHEW: ICRA Keeps B+ Debt Ratings in Not Cooperating
-----------------------------------------------------------------
ICRA has retained the ratings of Sreelekshmi Cashew Enterprises
Private Limited in the 'Issuer Not Cooperating' category. The
ratings are denoted as [ICRA]B+ (Stable)/[ICRA]A4 ISSUER NOT
COOPERATING.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 5.50 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating Moved to
Cash Credit the ‘Issuer Not
Cooperating’
Category
Long Term 20.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based– COOPERATING; Rating continues
Packing Credit to remain under 'Issuer Not
Cooperating' category
Long Term 7.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based– COOPERATING; Rating continues
Foreign Bill to remain under 'Issuer Not
Discounting Cooperating' category
Long Term 7.82 [ICRA]B+ (Stable) ISSUER NOT
Fund Based– COOPERATING; Rating continues
Term Loans to remain under 'Issuer Not
Cooperating' category
Short Term– 2.68 [ICRA]A4 ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Sreelekshmi Cashew Enterprises Private Limited, ICRA has been
trying to seek information from the entity so as to monitor its
performance. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid
policy of ICRA, the ratings have been retained in the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
Commenced in 1996 as a proprietorship concern (Sreelakshmi Cashew
Company), it was converted into a partnership firm with effect from
April 1, 2003 and later into a private limited company in December
2019 and was named Sreelekshmi Cashew Enterprises Private Limited
(SCEPL). The company has 11 processing facilities in Kerala and
Tamil Nadu. The firm is engaged in the processing of plain cashew
kernels from raw cashew nuts (RCNs). SCEPL sells its products in
the domestic as well as export.
SUNRISE KNITTING: CARE Lowers Rating on INR24cr LT Loan to B-
-------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Sunrise Knitting Mills Private Limited (SKMPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 24.00 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE BB-; Stable
Short Term Bank 6.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated March 04, 2022,
placed the rating(s) of SKMPL under the 'issuer non-cooperating'
category as SKMPL 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. SKMPL continues to
be noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
January 18, 2023, January 28, 2023, February 8, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of SKMPL have been
revised on account of non-availability of requisite information.
The ratings further consider decline in operating income, overall
profitability and debt coverage indicators during FY22 over FY21.
Analytical approach: Standalone
Outlook: Stable
Sunrise Knitting Mills Private Limited was incorporated in 2015 as
a private limited company by Mr. R. Mahesh and Mr. B.
Shanmugavadivel. The company is engaged in manufacturing of fabrics
and readymade garments. The export customers of SKMPL are located
at USA, UK and Canada. The company generates around 95% of revenue
through exports. The company had an installed capacity of producing
1,00,000 units per day depends on the types of the garments.
SUSHEE IVRCL: Ind-Ra Affirms B+ Term Loan Rating
------------------------------------------------
India Ratings and Research (Ind-Ra) has taken the following rating
actions on Sushee IVRCL Arunachal Highways Limited's (SIAHL) debt
instruments:
-- INR1,598.60 bil. (reduced from INR1,777.82 bil.) Rupee term
loan (RTL) due on January 2030 affirmed, Outlook revised to
Negative from Stable with IND B+/Negative rating; and
-- INR143 mil. Performance bank guarantee is withdrawn (paid in
full).
The Outlook revision reflects the non-resolution of reconciliation
of excess interest charged by few lenders against the interest paid
by SIAHL since April 2020, and an elevated dependence on Sushee
Infra and Mining Limited (SIML; the sponsor) for timely debt
servicing amid the stretched liquidity due to weak coverages and
non-availability of a static debt service reserve account (DSRA),
which was utilized for debt servicing.
The rating continues to be constrained by weak coverage indicators
with intermittent cash flow mismatches forcing it to rely on its
sponsor to meet its debt servicing in a timely manner. The sponsor
has infused funds in the project to finance the cost overrun and
loan repayments in the past. A continued timely support from the
sponsor and its credit profile are critical and will remain a key
rating monitorable.
Ind-Ra continues to analyze SIAHL's standalone credit profile to
arrive at the rating. The unsecured loans of INR734.4 million,
apart from the equity contribution from SIML, are fully
subordinated to the senior ranking RTL, as per the loan agreements,
and hence, have not been considered as additional debt in Ind-Ra's
analysis.
Key Rating Drivers
Interest Rate Reconciliation Issue Persists: SIAHL has confirmed to
Ind-Ra that there is an interest amount reflecting as payable to
four out of the five lenders, due to the difference between the
rate of interest charged by the consortium members and lead banks
because of delay in recognition of the reduction in interest rate
notified by the lead lender. According to the common loan
agreement, the lending rate of all banks should be uniform and
aligned with the benchmark rate, which is the lead bank's rate of
interest. SIAHL has also represented the issue in the lenders'
consortium meetings.
In February 2022, Ind-Ra has resolved the Rating Watch with
Developing Implications following the confirmation from the bankers
on the admittance of an excess interest claim by the company and
the resolution on the same with the ongoing process to credit the
excess interest charged to the company and alignment of the
interest rate in line with the lead banker. However, the same is
yet to be resolved and the reconciliation process is still on going
with the lenders, and the outcome of the same is awaited. Ind-Ra
will monitor the outcome of the reconciliation process and also
understand the processes to avoid this concern.
The project also received four annuities from the authority till
date after deductions for the recovery of OTFIS instalments and
standard recoveries. The third and fourth annuities were received
on September 5, 2022 and February 23, 2023 with a delay of 60 days
and 47 days, respectively. The management does not expect delays
going forward as Ministry of Road Transport and Highways (MoRTH)
has a track record of releasing annuities on time, subject to
maintaining the availability of roads.
Liquidity Indicator - Poor: The annuity payments are scheduled to
be received in July and January each financial year, while it has
monthly and quarterly commitments of interest and principal,
respectively. The coverage indicators remain weak due to the
recovery of INR200 million of instalments and INR110 million of
interest payment towards a one-time fund infusion support (OTFIS)
loan from the authority, out of each annuity payment of INR390
million. The coverage indictors remain below unity until FY26 and
the support from the sponsor is crucial to meet the debt servicing
in a timely manner. The sponsor infused INR161 million in FY23 and
the total outstanding unsecured loan from sponsor as on FY23 is
INR734.4 million.
The final tranche of OTFIS of INR200 million is linked to the
achievement of final completion certificate. The management had
expected to attain final completion during March 2022, however, the
same is yet to be achieved, leading to utilization of the DSRA for
debt servicing. The sponsor has confirmed that it would retain the
final tranche of subsidy in the special purpose vehicle (SPV) and
will replenish the DSRA. As of March 31, 2023, the company had a
cash balance of INR53.9 million.
Continued Sponsor Support Required: The sponsor's credit profile
remained moderate with a top line of INR6,671 million in FY22 and
an EBITDA margin of 25%. The management has confirmed to Ind-Ra
that the sponsor has budgeted the cash flow requirement of SIAPL
and would continue to provide timely support to the SPV.
Moderate Debt Structure: The RTL is repayable in 40 quarterly
repayments, as per the original repayment schedule, with ballooning
repayments towards the end of the term loan. After the
part-prepayment of the term loan, the maturity period has been
preponed to January 2030, leaving a tail period of three years and
seven months. The principal repayment dates are in sync with the
annuity receipt payments, and therefore, there is no in-built
cushion in the debt structure to absorb any annuity delays. The
event of default clauses mentions cross defaults with the sponsor.
The net OTFIS support from MoRTH is INR1,996 million, of which
INR200 million is yet to be received and the current outstanding on
the same is INR2,000 million after the recovery in the four
annuities. The principal is recovered in 10 half-yearly instalments
of INR200 million each and the accumulated interest on the OTFIS
from the annuity payment. The interest for the outstanding amounts
is calculated at the Reserve Bank of India-prescribed bank rate
plus 3%.
Moderate Operations and Maintenance Risk: SIAHL has signed a fixed
operations and maintenance contract with SIML (INR0.4 million per
km per annum). The geographical location of the project stretches
exposes it to landslides and road damage due to heavy water logging
during monsoon; however, according to the management, these risks
are mitigated to some extent through the presence of sufficient
vegetation along the road stretch. The management expects to
complete the major maintenances in two cycles, the first in FY27
and the other in FY32, at a lower cost than that of the rated peers
with bitumen road profile. A substantial increase in the actual
operating expenses, beyond Ind-Ra's base case estimates, could
impact the rating.
Construction Risk Mitigated: The project achieved the provisional
completion on January 7, 2021. It has also completed the punch-list
items mentioned in the provisional commercial operations date
(COD). While the entire project work within the original scope has
been completed, one bridge work in the project stretch as a change
of scope is ongoing and as per the management would be completed by
May 2023, post which the company will apply for final COD.
Rating Sensitivities
Negative: Future developments that may, individually or
collectively, lead to a negative rating action are:
- any material delays or deductions in the receipt of annuities,
- a non-creation of the DSRA from the last OTFIS payment of INR200
million,
- the absence of a timely sponsor support,
- a deterioration in the credit profile of the sponsor,
- any adverse development in the interest rate reconciliation
issue.
Positive: A complete clarity on reconciliation of the interest
charged and resolution of the same by lenders, along with improved
coverages would lead to the Outlook being revised back to Stable.
Company Profile
SIAHL is an SPV promoted by SIML, which was incorporated in 1986.
It has been incorporated to widen National Highway 229 (252.09km)
in Arunachal Pradesh from one lane to two lanes under a design,
build, finance, operate and transfer (annuity basis) model. The
17-year concession has been awarded by the MoRTH. SIML undertakes
mining, irrigation, railways, infrastructure and road projects.
=========
J A P A N
=========
RAKUTEN GROUP: Unveils JPY332BB Share Issue to Bolster Finances
---------------------------------------------------------------
The Business Times reports that Rakuten Group said on May 16 it
aimed to raise up to JPY332 billion by issuing new shares on the
market as well as to founder and chief executive officer Hiroshi
Mikitani.
Shares in the company lost 5.1% on May 16 ahead of Rakuten's
announcement, extending the previous day's sharp slide after
Reuters reported the plan, aimed at shoring up its finances after
years of losses from its mobile business, BT says.
According to BT, Rakuten said in a statement it aims to raise about
JPY290 billion via a public offering and another JPY41.8 billion
allocated to Mikitani, his asset management firm CyberAgent, and
Tokyu Corp.
Prospects of a share dilution led on May 15 to the stock's biggest
one-day drop in three years, BT notes. Rakuten's market
capitalisation has fallen about US$1.6 billion since the Reuters
report.
"Whenever there is a large sale of new equity, that is dilutive but
it also forces decisions about whether to hold. Some will be upset
and will sell," BT quotes analyst Travis Lundy of Quiddity
Advisors, who publishes on Smartkarma, as saying.
Rakuten said it would use the funds for debt repayment and to build
base stations, BT adds.
Japan-based Rakuten Group provides e-commerce, fintech, digital
content, and communications products and services.
As reported in the Troubled Company Reporter-Asia Pacific in
mid-January, S&P Global Ratings affirmed its 'BB' issue credit
rating to Rakuten Group Inc.'s (BB/Negative/--) U.S.
dollar-denominated senior unsecured bonds ($500 million; issued in
November 2022; due in 2024) following the company's announcement of
a potential additional issuance.
=========
M A C A U
=========
MELCO RESORTS: S&P Affirms 'BB-' ICR, Alters Outlook to Stable
--------------------------------------------------------------
S&P Global Ratings revised the rating outlook on Melco Resorts &
Entertainment Ltd.'s (MLCO) operating subsidiaries, Melco Resorts
(Macau) Ltd. (MRM) and Studio City Co. Ltd., to stable from
negative. At the same time, S&P affirmed its long-term issuer and
issue credit ratings on MRM at 'BB-' and on Studio City at 'B+'.
The stable rating outlook reflects S&P's view that Macao's faster
mass-market recovery should allow MLCO to recover its revenue and
cash flow strongly in 2023 and reduce its leverage to below its
downgrade threshold in late 2023 or early 2024.
MLCO's Macao revenue and cash flow are recovering materially faster
than we previously assumed, supporting more rapid deleveraging.
Macao's gaming revenue has been rebounding faster than S&P
anticipated. This follows a relaxation of COVID-19 control measures
and travel restrictions earlier in the year. In the first quarter
of 2023, industry mass GGR recovered to 67% of the level of the
first quarter 2019. VIP GGR recovered to 23% of the level.
S&P previously thought mass GGR in the first quarter of 2023 would
recover to only 35%-40% of 2019 levels, before the recovery
strengthens in the second half and reach 60%-70% of 2019 levels in
2023.
S&P now expect mass GGR to recover to 75%-85% of 2019 levels this
year and to fully recover in 2024. In its view, VIP GGR may stay at
20%-25% of 2019 levels in 2023.
In the first quarter 2023, MLCO's reported hold-adjusted EBITDA
recovered to about 50% of the level of the first quarter of 2019.
The recovery should accelerate over the next several quarters, on
the back of higher Macao visits, higher availability of hotel
rooms, and incremental contributions from Studio City Phase 2
(opened on April 6, 2023).
Reflecting this, we raised our EBITDA forecast by 13.5% to US$1.1
billion for 2023 and by 2.5% to US$1.5 billion for 2024. These are
about 70% and 103% of 2019 levels, respectively.
MLCO's debt-to-EBITDA ratio should drop to 3.8x in 2024 from 6.3x
in 2023.
Moderate capital expenditure (capex) will support a return to
healthy free operating cash flow (FOCF). S&P said, "Our base case
assumes MLCO will spend about US$300 million on capex in 2023 and
US$330 million in 2024, down from close to US$600 million in 2022.
The group has completed the construction of Studio City Phase 2 and
will be completing City of Dreams Mediterranean this year. Our
forecasts include maintenance expenditure of US$150 million-US$180
million, and investments committed under the group's Macao
concession."
The Melco group has agreed to invest about US$1.5 billion in
capital and operating expenses (excluding the incremental amount
depending on actual GGR). It could spread the commitments over the
10-year term of its new concession. The spending will include
non-gaming capex and operating expenses to support non-gaming
amenities and events.
With that, MLCO may generate FOCF of more than US$670 million in
2023 and US$930 million in 2024. The group is likely to use the
bulk of the cash for debt repayment because S&P believes it will be
prudent in the resumption of dividend payments.
S&P said, "The stable rating outlook on MRM and Studio City
reflects our view that Macao's faster mass-market recovery will
support a strong recovery in MLCO's revenue and cash flow and an
improvement in leverage to 3.8x in 2024, below our downgrade
threshold of 4.5x.
"We may lower our ratings on MRM and Studio City if Macao's GGR
does not recover in a manner that supports a reduction in MLCO's
debt-to-EBITDA ratio to 4.5x or below in 2024. We base our
threshold on our assumption of a 5.0x ratio at Melco International
Development Ltd. (MID), the ultimate parent of the group.
"We could raise our ratings if MLCO restores and sustains its
leverage to below 3.5x. This may happen in the second half of 2024,
assuming a full recovery in Macao's mass gaming market and no
material investments or shareholder returns by MLCO.
"An upgrade may happen earlier if Macao's market recovery is much
stronger than we expect in the rest of 2023."
ESG credit indicators: To E-2, S-3, G-2; From E-2, S-4, G-2
S&P said, "Health and safety factors have improved for MRM and
Studio City, in our view. They are now a moderately negative
consideration in our credit analysis. As a result, we revised our
social credit indicator to S-3 from S-4.
"China's zero-COVID-19 policy had severely depressed the group's
cash flow in Macao for nearly three years. However, visits to the
market and revenue have been recovering faster than we previously
expected following a relaxation of those policies earlier this
year.
"While we view the pandemic as a rare and extreme disruption that
is unlikely to recur at the same magnitude, health and safety
scares remain an ongoing risk factor for MRM and Studio City. In
addition to health and safety scares, increased regulations to
address social risks can periodically introduce volatility in
gaming revenue and profitability."
For instance, concerns over a proliferation of gaming, rapid GGR
growth, and perceived corruption led the Chinese central government
to impose visa restrictions, increase scrutiny of the movement of
money in and out of Macao, and increase enforcement of marketing
restrictions in 2015. These regulatory changes contributed to a 34%
decline in Macao's GGR in 2015. The government's commitment to
diversifying revenue in Macao can also lead to higher capital
spending by operators to develop non-gaming amenities.
Environmental, social, and governance (ESG) credit factors for this
change in credit rating/outlook and/or CreditWatch status:
-- Health and safety
=====================
N E W Z E A L A N D
=====================
DOCTOR SWEEP: Court to Hear Wind-Up Petition on June 6
------------------------------------------------------
A petition to wind up the operations of Doctor Sweep NZ Limited
will be heard before the High Court at Wellington on June 6, 2023,
at 10:00 a.m.
Interleasing (New Zealand) Limited filed the petition against the
company on Feb. 22, 2023.
The Petitioner's solicitor is:
J. R. F. Cochrane
Lane Neave
Level 8 Vero Centre
48 Shortland Street
Auckland 1010
INTERIOR SEWING: Creditors' Proofs of Debt Due on June 15
---------------------------------------------------------
Creditors of Interior Sewing Limited are required to file their
proofs of debt by June 15, 2023, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on May 7, 2023.
The company's liquidator is:
Geoff Falloon
Biz Rescue Limited
Business Recovery and Insolvency Specialists
PO Box 27
Nelson 7040
NOVO 19: Creditors' Proofs of Debt Due on June 9
------------------------------------------------
Creditors of Novo 19 Limited are required to file their proofs of
debt by June 9, 2023, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on May 8, 2023.
The company's liquidators are:
Adam Botterill
Damien Grant
Waterstone Insolvency
PO Box 352
Auckland 1140
PR IMPORTS: Court to Hear Wind-Up Petition on May 26
----------------------------------------------------
A petition to wind up the operations of PR Imports Limited will be
heard before the High Court at Auckland on May 26, 2023, at 10:00
a.m.
The Commissioner of Inland Revenue filed the petition against the
company on April 12, 2023.
The Petitioner's solicitor is:
Cloete Van Der Merwe
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
RITZ ENTERPRISES: Creditors' Proofs of Debt Due on June 23
----------------------------------------------------------
Creditors of Ritz Enterprises Limited are required to file their
proofs of debt by June 23, 2023, to be included in the company's
dividend distribution.
The High Court at Auckland appointed Simon Dalton and Benjamin
Francis of Gerry Rea Partners as liquidators on May 5, 2023.
=================
S I N G A P O R E
=================
AIRWALLEX (SINGAPORE): Court to Hear Wind-Up Petition on May 26
---------------------------------------------------------------
A petition to wind up the operations of Airwallex (Singapore) Pte
Ltd will be heard before the High Court of Singapore on May 26,
2023, at 10:00 a.m.
Drinifini Beverages Pte. Ltd. filed the petition against the
company on May 3, 2023.
The Petitioner's solicitors are:
K&L Gates Straits Law LLC
9 Raffles Place
#32-00 Republic Plaza
Singapore 048619
CAPITAL MATCH: Creditors' Meeting Set for May 26
------------------------------------------------
Capital Match Platform Pte Ltd, which is in provisional
liquidation, will hold a meeting for its creditors on May 26, 2023,
at 11:30 a.m., via Zoom.
Agenda of the meeting includes:
a. to lay before the creditors a full statement of the affairs
of the Companies;
b. to appoint appoint Messrs. Saw Meng Tee and Ong Shyue Wen to
act jointly and severally as liquidators of the Company for
the purpose of the winding up;
c. to appoint a Committee of Inspection of not more than 5
persons for the purpose of the winding up; and
d. Any other business.
Messrs. Saw Meng Tee and and Ong Shyue Wen were appointed as joint
and several Provisional Liquidators of the company on May 11,
2023.
LCM GLOBAL: Creditors' Proofs of Debt Due on June 16
----------------------------------------------------
Creditors of LCM Global Growth Fund Pte. Ltd. are required to file
their proofs of debt by June 16, 2023, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on May 10, 2023.
The company's liquidators are:
Lim Soh Yen
Lam Seng Tiong
c/o 133 New Bridge Road
#24-01/02 Chinatown Point
Singapore 059413
SKY THE LIMIT: Court Enters Wind-Up Order
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The High Court of Singapore entered an order on May 5, 2023, to
wind up the operations of Sky The Limit Pte. Ltd.
Maybank Singapore Limited filed the petition against the company.
The company's liquidators are:
BDO Advisory Pte Ltd
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
YELLOW STAR: Creditors' Proofs of Debt Due on June 16
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Creditors of Yellow Star Investment 6 Pte. Ltd. are required to
file their proofs of debt by June 16, 2023, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on May 8, 2023.
The company's liquidator is:
Ho May Kee
c/o Grant Thornton Singapore
8 Marina View
#40-04/05 Asia Square Tower 1
Singapore 018960
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S O U T H K O R E A
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ASIANA AIRLINES: Net Loss Widens to KRW54.36BB in Q1 Ended Mar. 31
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Yonhap News Agency reports that Asiana Airlines Inc. said May 15
its net losses widened in the first quarter from a year earlier as
a weak won drove up operating costs.
Net losses deepened to KRW54.36 billion (US$40.6 million) in the
three months ending in March from KRW46.55 billion during the same
period of last year, the company said in a statement.
"The won's weakness against the dollar pushed up jet fuel,
maintenance and airport-related costs, weighing on the quarterly
bottom line," the statement said.
The dollar rose to an average of KRW1,275.58 in the first quarter
from KRW1,204.95 a year earlier, according to data from the Bank of
Korea.
Operating profit rose 16 percent to KRW166.82 billion in the March
quarter from KRW143.52 billion a year ago, Yonhap discloses. Sales
jumped 40 percent to KRW1.75 trillion from KRW1.25 trillion during
the cited period.
About Asiana Airlines
Headquartered in Osoe-Dong Kangseo-Gu, South Korea, Asiana Airlines
Incorporated is engaged in air transportation, engineering,
construction, facilities, electricity, ground handling, catering,
communication, logo products and e-business. Asiana Airlines is a
unit of the Kumho Asiana Group, a South Korean conglomerate whose
business portfolio includes tire manufacturing and chemical
production.
State lenders Korea Development Bank and the Export-Import Bank of
Korea planned to inject a combined KRW1.7 trillion into Asiana to
help the airline stay afloat. In self-help measures, Asiana has
had all of its 10,500 employees take unpaid leave for 15 days a
month since April 2020 until business circumstances normalize,
Yonhap noted. Asiana's executives have also agreed to forgo 60% of
their wages, though no specific time frame was given for how long
the pay cuts will remain in effect.
In November 2020, Korean Air said it will acquire Asiana Airlines
in a deal valued at KRW1.8 trillion that could create the world's
10th-biggest airline by fleets, Yonhap said.
KOREA ELECTRIC: Posts KRW6.2 Tril. Net Loss in Qtr Ended March 31
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Reuters reports that Korea Electric Power Corp. (KEPCO) reported on
May 12 a loss of KRW6.2 trillion ($4.68 billion) in the March
quarter as politicians remained reluctant to raise electricity
bills ahead of an election next year.
It was KEPCO's eighth consecutive quarterly loss, although it was
narrower than the KRW7.8 trillion loss in the first quarter last
year, Reuters SAYS.
Although energy prices soared last year after Russia's invasion of
Ukraine, South Korea's government was slow to pass on higher costs
to consumers and businesses grappling with inflation in other parts
of the economy.
Electricity prices, set by the government, rose only 11% in 2022,
Reuters relates citing KEPCO data. That was far behind the 64.5%
increase in the costs of natural gas, crude oil and coal combined
reported by the Korea Enterprises Federation.
The resource-poor country depends on imports for nearly all of its
energy, but competitive power costs are also key for the
export-driven, manufacturing-heavy economy led by chipmakers and
automakers such as Samsung Electronics and Hyundai Motor.
KEPCO's debt climbed to KRW192.8 trillion as of end-2022, with a
debt-to-equity ratio of about 459%, the report discloses.
Electricity bills should rise by 51.6 won per kilowatt-hour this
year, or nearly 43% from the 2022 average of 120.51 won per kWh, to
help stop KEPCO's losses and restore its balance sheet health by
2026, the industry ministry estimated in a statement to
parliament.
The government in December hiked rates by KRW13.1 per kWh for the
first quarter, Reuters recalls. However, second-quarter hikes were
delayed after a public backlash about higher bills during winter
months and are likely to be smaller when announced soon, a ministry
official said.
In February, President Yoon Suk Yeol had called for a freeze on
public utility charges during the first half of the year to ease
burdens from higher inflation. South Korea's next general election
will be held in April 2024.
Reuters adds that KEPCO also announced on May 12 plans to cut costs
and sell assets to save more than KRW25 trillion by 2026.
Korea Electric Power Corporation (KEPCO) is an integrated electric
utility company, transmitting and distributing substantially all of
the electricity in South Korea. Korea Electric Power Corporation
was founded in 1961 and is headquartered in Naju, South Korea.
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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-
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Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
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Copyright 2023. All rights reserved. ISSN: 1520-9482.
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