/raid1/www/Hosts/bankrupt/TCRAP_Public/230615.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, June 15, 2023, Vol. 26, No. 120
Headlines
A U S T R A L I A
BEHEMOTH CANBERRA: Second Creditors' Meeting Set for June 22
BIG UN: Former CFO Charged With Insider Trading
CEMALT AUSTRALIA: Second Creditors' Meeting Set for June 19
LA TROBE 2023-2: S&P Assigns B+ (sf) Rating to Class F Notes
LIBERTY FUNDING 2023-3: Moody's Assigns B2 Rating to Class F Notes
LPS VIC: First Creditors' Meeting Set for June 22
MKS PROPERTY: Grant Thornton Partners Appointed as Liquidators
RICHARD CROOKES: Denies Filing for Voluntary Administration
SALAMANCA BAR: Second Creditors' Meeting Set for June 22
TILLER RIDES: Second Creditors' Meeting Set for June 20
C H I N A
CHINA: Offshore Green Bond Market Evaporates on Default Worries
DALIAN WANDA: Faces Liquidity Issue, Looks for Support on Debt
DEER INVESTMENT: Moody's Lowers CFR to B3, Outlook Remains Stable
VNET GROUP: S&P Places 'B' LT Issuer Rating on CreditWatch Negative
I N D I A
AABHARAN JEWELLERY: CRISIL Reaffirms B+ Rating on INR6.5cr Loan
ABM INT'L: CRISIL Lowers Rating on INR2cr Loan to B-
ADANI GROUP: In Talks for Major Debt Refinancing After Hindenburg
ANDHRA PRADESH: CRISIL Lowers Rating on INR5cr Cash Loan to B-
ASHOK BRICKS: ICRA Keeps D Debt Ratings in Not Cooperating
B S R POULTRY: CRISIL Withdraws B Rating on INR11.5cr Cash Loan
BANSHIDHAR CONSTRUCTION: CRISIL Withdraws B+ Debt Ratings
CYGNUS SPLENDID: ICRA Keeps D Debt Ratings in Not Cooperating
DAYAL ENERGY: CRISIL Withdraws D Rating on INR13.3cr Whse Debt
DHANALAKSHMI SRINIVASAN: ICRA Keeps D Rating in Not Cooperating
FRONTIER KNITTERS: CRISIL Reaffirms B+ Rating on INR36cr Loan
GAYATRI DEVELOPWELL: ICRA Keeps D Debt Ratings in Not Cooperating
J.S.R. CONSTRUCTIONS: CRISIL Hikes Rating on INR1cr LT Loan to B-
JOY BHARAT: CRISIL Reaffirms B+ Rating on INR5.9cr Cash Loan
KUMBHI KASARI: CRISIL Assigns B- Rating to INR76.5cr Term Loan
NEHA CONSTRUCTIONS: CRISIL Cuts Rating on INR3cr Loan to B-
PERFECT INFRAENGINEERS: CRISIL Cuts Rating on LT/ST Loan to D
PROGNOSYS MEDICAL: CRISIL Withdraws B- Rating on INR4cr Cash Loan
R. S. NAYAK: CRISIL Assigns B+ Rating to INR13cr Cash Loan
S.K. SOLVEX: CRISIL Reaffirms B+ Debt Rating on INR19.6cr Loan
SANMATI EDIBLE: CRISIL Reaffirms B Rating on INR8cr Cash Loan
SHREE AHUJA: Insolvency Resolution Process Case Summary
SIDHI VINAYAK: ICRA Keeps D Debt Rating in Not Cooperating
SRINIVASAN CHARITABLE: ICRA Keeps D Rating in Not Cooperating
SRINIVASAN HEALTH: ICRA Keeps D Debt Rating in Not Cooperating
STARWOOD VENEERS: CRISIL Reaffirms B Rating on INR9cr LOC
SUBHASH SUGAR: CRISIL Assigns B+ Rating to INR130cr Pledge Loan
SUNWAY INFRA: ICRA Keeps D Debt Rating in Not Cooperating
VINAYAK INT'L: ICRA Keeps D Debt Ratings in Not Cooperating
N E W Z E A L A N D
AAA PRO: Grant Bruce Reynolds Appointed as Liquidator
DESIGN ELECTRONICS: Creditors' Proofs of Debt Due on July 10
LABOUR 4 YOU: Creditors' Proofs of Debt Due on July 10
PASSIVE FIRE: Khov Jones Limited Appointed as Receivers
RUAPEHU ALPINE: Liquidation is Best Option, Administrators Say
SMARTLEGAL LIMITED: Creditors' Proofs of Debt Due on July 3
P H I L I P P I N E S
MONDE NISSIN: Wins SEC Approval for Equity Restructuring
S I N G A P O R E
NBT PAKISTAN: Final Meeting Set for July 17
QANTAS ASIA: Members' Final Meeting Set for July 14
TRACESAFE ASIA: Court to Hear Wind-Up Petition on June 23
- - - - -
=================
A U S T R A L I A
=================
BEHEMOTH CANBERRA: Second Creditors' Meeting Set for June 22
------------------------------------------------------------
A second meeting of creditors in the proceedings of Behemoth
Canberra Pty Limited has been set for June 22, 2023 at 10:00 a.m.
via remote meeting and at Unit 2, 16 Bougainville Street in
Griffith Act.
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 June 21, 2023 at 3:00 p.m.
Ezio Senatore of Eddie Senatore Advisory was appointed as
administrator of the company on May 19, 2023.
BIG UN: Former CFO Charged With Insider Trading
-----------------------------------------------
The former CFO of Big Un Limited, Mr. Andrew Scott Corner, has
appeared via his lawyer in the Downing Centre Local Court charged
with insider trading contrary to s1043A(1) of the Corporations
Act.
ASIC alleges that Mr Corner was in possession of inside information
in late 2017 when he procured two private companies to sell 1.7
million Big Un shares for a total value of more than $5 million.
The information that Mr Corner allegedly possessed related to a
funding arrangement between Big Un's subsidiary, Big Review TV
Limited and Sydney-based financier, First Class Capital.
Big Un was one of the top performing shares listed on the ASX in
2017. Its shares were suspended from trading in February 2018 after
information about Big Un's funding arrangement with First Class
Capital was released.
Big Un was placed into voluntary administration and delisted from
the ASX in August 2018. It is now in liquidation. Big Review TV is
also in liquidation.
The matter has been listed for mention at the Downing Centre Local
Court on July 25, 2023.
The matter is being prosecuted by the Commonwealth Director of
Public Prosecutions following a referral from ASIC.
Trading while in possession of inside information is an offence
under section 1043A(1) of the Corporations Act.
At the time of the alleged offending, the maximum penalty was 10
years imprisonment and/or a fine of 4,500 penalty units, or, if the
court can determine the total value of the benefits that have been
obtained by one or more persons and are reasonably attributable to
the commission of the offence, three times that total value. The
maximum penalty increased in March 2019 to 15 years imprisonment
and/or a fine of 4,500 penalty units.
ASIC has previously taken action against:
* The auditor of Big Un, Mr Graham Rothesay Swan, who was
convicted for failing to conduct the 2017 audit of Big Un in
compliance with auditing standards.
* Mr. Jakin Leong Loke, whose auditor registration was suspended
for 12 months by the Companies Auditors Disciplinary Board
due to his involvement in the 2017 audit of Big Un.
* Former investment analyst, Mr. Michael Ming Jinn Ho, who was
sentenced to three years imprisonment to be served via an
intensive correction order. Mr Ho was convicted on five
counts of insider trading and one count of communicating
inside information in respect of Big Un between 2016 and
2018.
ASIC has also commenced proceedings against Big Un's former CEO,
Mr. Richard Evans for allegedly communicating inside information to
Mr. Ho in 2017.
CEMALT AUSTRALIA: Second Creditors' Meeting Set for June 19
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Cemalt
Australia Pty Ltd has been set for June 19, 2023 at 11:30 a.m. via
Zoom videoconference.
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 June 16, 2023 at 4:00 p.m.
Suelen McCallum of dVT Group was appointed as administrator of the
company on May 15, 2023.
LA TROBE 2023-2: S&P Assigns B+ (sf) Rating to Class F Notes
------------------------------------------------------------
S&P Global Ratings assigned its ratings to eight of the 10 classes
of residential mortgage-backed securities (RMBS) to be issued by
Perpetual Corporate Trust Ltd. as trustee for La Trobe Financial
Capital Markets Trust 2023-2. La Trobe Financial Capital Markets
Trust 2023-2 is a securitization of nonconforming and prime
residential mortgages originated by La Trobe Financial Services Pty
Ltd. (La Trobe Financial).
The ratings reflect:
-- That the credit risk of the underlying collateral portfolio and
the credit support provided to each class of notes are commensurate
with the ratings assigned. Credit support is provided by
subordination and excess spread. The assessment of credit risk
takes into account La Trobe Financial's underwriting standards and
approval process, and La Trobe Financial's servicing quality.
-- That the transaction's cash flows can meet timely payment of
interest and ultimate payment of principal to the noteholders under
the rating stresses. Key factors are the level of subordination
provided, an amortizing liquidity facility sized at 1.5% of the
note balance, the principal draw function, the yield reserve, the
retention amount built from excess spread before the call date, the
amortization amount built from excess spread after the call date or
upon a servicer default, and the provision of an extraordinary
expense reserve. All rating stresses are made on the basis that the
trust does not call the notes at or beyond the call date, and that
all rated notes must be fully redeemed via the principal waterfall
mechanism under the transaction documents.
-- That S&P also has factored into its ratings the legal structure
of the trust, which has been established as a special-purpose
entity and meets its criteria for insolvency remoteness.
-- The counterparty support provided by National Australia Bank
Ltd. as liquidity facility provider and Commonwealth Bank of
Australia as bank account provider. The transaction documents for
the liquidity facility and bank accounts include downgrade language
consistent with S&P's "Counterparty Risk Framework: Methodology And
Assumptions" criteria, published on March 8, 2019, that requires
the replacement of the counterparty or other remedy, should its
rating fall below the applicable rating.
Ratings Assigned
La Trobe Financial Capital Markets Trust 2023-2
Class A1S, A$187.50 million: AAA (sf)
Class A1L, A$386.25 million: AAA (sf)
Class A2, A$67.50 million: AAA (sf)
Class B, A$58.35 million: AA (sf)
Class C, A$19.20 million: A (sf)
Class D, A$13.05 million: BBB (sf)
Class E, A$8.25 million: BB (sf)
Class F, A$3.90 million: B+ (sf)
Equity 1, A$4.12 million: Not rated
Equity 2, A$1.88 million: Not rated
LIBERTY FUNDING 2023-3: Moody's Assigns B2 Rating to Class F Notes
------------------------------------------------------------------
Moody's Investors Service has assigned the following definitive
ratings to the notes issued by Liberty Funding Pty Ltd in respect
of Liberty Series 2023-3.
Issuer: Liberty Funding Pty Ltd in respect of Liberty Series
2023-3
AUD704.00 million Class A Notes, Assigned Aaa (sf)
AUD56.00 million Class B Notes, Assigned Aa1 (sf)
AUD6.40 million Class C Notes, Assigned A2 (sf)
AUD12.80 million Class D Notes, Assigned Baa2 (sf)
AUD4.80 million Class E Notes, Assigned Ba1 (sf)
AUD5.60 million Class F Notes, Assigned B2 (sf)
The AUD10.4 million Class G Notes are not rated by Moody's.
The transaction is a securitisation of Australian residential
mortgage loans originated and serviced by Liberty Financial Pty Ltd
(Liberty, unrated).
RATINGS RATIONALE
The ratings take into account, among other factors:
Evaluation of the underlying receivables and their expected
performance;
The three months pre-funding period, during which a pre-funded
amount of AUD225 million can be used to add new loans to the pool,
subject to certain criteria being met.
Evaluation of the capital structure and credit enhancement
provided to the notes;
The liquidity facility in the amount of 2.0% of the notes balance
subject to a floor of AUD800,000;
The experience of Liberty as the servicer;
Presence of Perpetual Trustee Company Limited as the back-up
servicer.
Moody's MILAN credit enhancement (MILAN CE) for the collateral pool
is 8.7%, while the expected loss is 1.20%.
MILAN CE represents the loss Moody's expect the portfolio to suffer
in a severe recessionary scenario, and does not take into account
structural features of the transaction. The expected loss
represents a stressed, through-the-cycle loss relative to
Australian historical data.
A key strength of the transaction is the 12% subordination
available to Class A Notes, compared with the 8.7% Moody's MILAN
CE.
Moody's considers the pre-funding period a key challenge. The
transaction has a three months pre-funding period, during which up
to AUD225 million new loans can be added to the pool. This could
lead to a deterioration in the pool quality. While portfolio
parameters reduce the risk of the deterioration, among other
things, there is no minimum seasoning requirement relating to the
pre-funding, and loan-to-value (LTV) ratio limits address only
current LTV and not scheduled LTV. Moody's have taken this into
account in Moody's asset analysis.
The key transactional features are as follows:
The notes benefit from a guarantee fee reserve available to cover
losses arising from the portfolio and shortfalls in interest
payments on the notes. Unfunded at closing, the reserve will build
up through the trapping of excess spread up to a maximum of
AUD2,400,000, equivalent to 0.30% of the initial invested amount of
the notes.
The notes will be initially repaid sequentially. On and after the
payment date in June 2025, and subject to, among other conditions,
no unreimbursed charge-offs, Class B to Class F Notes will start
receiving pro-rata share of principal payments. Class G Notes will
not receive principal payments until the other notes are repaid,
however once step down conditions are met, their pro-rata share of
principal will be allocated in a reverse sequential order, starting
from the Class F Notes.
The principal paydown will switch back to sequential pay once the
aggregate invested amount of all notes is less than or equal to
20.0% of the aggregate initial invested amount of all notes on the
issue date, or following the payment date in June 2027.
The key features of the initial pool as at the cut-off date are as
follows:
The initial pool has a weighted-average seasoning of 22.8 months.
The portfolio has a scheduled LTV ratio of 65.7%, with proportion
of loans with a scheduled LTV ratio above 80.0% of 13.7%.
Around 64.3% of the loans in the portfolio were extended to
self-employed borrowers.
Based on Moody's classifications, 24.3% of the loans in the
portfolio were extended on an alternative documentation basis, with
further 0.02% on low documentation basis.
Methodology Underlying the Rating Action:
The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
July 2022.
Factors that would lead to an upgrade or downgrade of the ratings:
Levels of credit protection that are greater than necessary to
protect investors against current expectations of loss could lead
to an upgrade of the ratings. Moody's current expectations of loss
could be better than its original expectations because of fewer
defaults by underlying obligors or higher recoveries on defaulted
loans. The Australian job market and the housing market are primary
drivers of performance.
A factor that could lead to a downgrade of the notes is
worse-than-expected collateral performance. Other reasons for
performance worse than Moody's expects include poor servicing,
error on the part of transaction parties, a deterioration in credit
quality of transaction counterparties, fraud and lack of
transactional governance.
LPS VIC: First Creditors' Meeting Set for June 22
-------------------------------------------------
A first meeting of the creditors in the proceedings of LPS Vic Pty
Ltd will be held on June 22, 2023, at 11:00 a.m. via virtual
meeting at Zoom.
Chad Rapsey and Mitchell Griffiths of Rapsey Griffiths Turnaround +
Advisory were appointed as administrators of the company on June 9,
2023.
MKS PROPERTY: Grant Thornton Partners Appointed as Liquidators
--------------------------------------------------------------
On June 7, 2023, David Hodgson and Andrew Hewitt of Grant Thornton
Australia were appointed as Joint and Several Liquidators of MKS
Property Investments/Developments Pty Ltd, pursuant to orders of
the Federal Court of Australia.
The Company, together with Monica Kaur, is understood to have
operated an unregistered managed investment scheme between March 1,
2017 and Dec. 16, 2020.
"We kindly request any investors who consider they are owed money
from the above scheme during the above period, to contact the Joint
and Several Liquidators," said a Grant Thornton spokesperson.
RICHARD CROOKES: Denies Filing for Voluntary Administration
-----------------------------------------------------------
Carolyn Cummins and Stephen Miles at The Sydney Morning Herald
report that family-owned Richard Crookes Constructions - the
builder of the Sydney Modern Art Gallery, UTS Central and the
Sirius Sydney apartment project at The Rocks - has denied calling
in voluntary administrators.
According to SMH, the company on June 14 rejected reports that it
had called in Deloitte as administrator, with managing director
Jamie Crookes saying the speculation was totally untrue.
"We have not appointed any administrator, we have not approached
any administrator, and we have not made any injection of capital,"
he told SMH.
Meanwhile, Deloitte said there was "no involvement of our people
relating to any Richard Crookes external administration".
SMH says other construction groups contacted about the speculation
also said they had not heard anything relating to Richard Crookes.
They did say, though, that the construction sector was still
feeling the pinch of high cost of materials and labour, and people
defaulting on home deals due to high-interest rates.
SALAMANCA BAR: Second Creditors' Meeting Set for June 22
--------------------------------------------------------
A second meeting of creditors in the proceedings of Salamanca Bar
Pty Ltd has been set for June 22, 2023 at 3:00 p.m. via virtual
meeting.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by June 21, 2023 at 4:00 p.m.
Kiara Melaleuca Calvert and Barry Kenneth Hamilton of Barry
Hamilton & Associates were appointed as administrators of the
company on May 17, 2023.
TILLER RIDES: Second Creditors' Meeting Set for June 20
-------------------------------------------------------
A second meeting of creditors in the proceedings of Tiller Rides
Pty Ltd has been set for June 20, 2023 at 9:30 a.m. at 1 Queen
Victoria Street in Fremantle and via virtual meeting technology.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by June 19, 2023 at 12:00 p.m.
EMJ Consulting was appointed as administrator of the company on
March 21, 2023.
=========
C H I N A
=========
CHINA: Offshore Green Bond Market Evaporates on Default Worries
---------------------------------------------------------------
Bloomberg News reports that after tapping foreign investors for
roughly US$55 billion in the past five years to fund environmental
projects in China, mainland companies have almost entirely given up
on the offshore green bond market this year.
Excluding bonds for restructuring and refinance, three Chinese
firms - China Merchants Bank, Industrial and Commercial Bank of
China and Chong Hing Bank - issued three green dollar bonds
totalling US$1.3 billion in the first half of 2023. In the same
period in 2022, Chinese firms raised US$17.2 billion across 38
bonds, according to data compiled by Bloomberg.
Foreign investors have soured on Chinese dollar bonds, green and
otherwise, in the light of the ongoing developer defaults and a
softer-than-expected post-Covid-19 recovery, said CreditSights
senior China credit analyst Zerlina Zeng, Bloomberg relays.
"We do not expect offshore bond investors to turn overly
enthusiastic towards Chinese issuers unless we see a sustainable
rebound of the China property sector and an easing of US-China
tension," Bloomberg quotes Ms. Zeng as saying.
China's green dollar bond issuance fell more than for non-green
issues.
According to Bloomberg, Chinese corporates sold US$113.8 billion in
dollar bonds in 2022, down 41 per cent from 2021. So far this year,
issuance is down another 51 per cent.
Interest rates hikes in the United States have also pushed up
borrowing costs, said Ms Puja Shah, head of ESG debt capital
markets at JPMorgan Chase & Co for Asia ex-Japan.
Still, Beijing's support for green finance remains strong, and
lower interest rates have lifted the domestic green bond market,
said Sustainable Fitch analyst Jia Jingwei.
Chinese firms issued US$42.5 billion onshore green bonds in the
first half of 2023, exceeding the US$36.2 billion raised in the
first half of 2022.
Bloomberg says large Chinese state-owned entities will continue to
be able to access the onshore bond market as well as low-cost bank
loans.
Despite the fall-off in the offshore market, China remained the
biggest green bond market in 2022 with US$76.25 billion in
issuance, according to data from the Climate Bonds Initiative.
China is working with the European Union on a common ground
taxonomy that will greater standardise green finance definitions to
facilitate cross-border issuance and investment.
DALIAN WANDA: Faces Liquidity Issue, Looks for Support on Debt
--------------------------------------------------------------
The Standard reports that Dalian Wanda is facing liquidity
challenges again, leading its chairman, Wang Jianlin, to personally
negotiate with regulators and potential strategic investors to seek
support for the conglomerate.
According to The Standard, sources said Wanda's executives are
pushing for extensions on billions of debt from banks, trust firms
and suppliers as they reach out to smaller lenders for new credit
lines. The Chinese property giant is seeking to refinance all
onshore loans due this year without repaying the principal.
Despite the liquidity problem, Wang was confident enough in his
financial position to offer help to a fellow Chinese mogul who
wanted to sell a portfolio of shopping malls for CNY700 million
(HK$766 million), sources said, The Standar relays.
The Standard meanwhile reports that mainland real-estate firms like
Seazen Group, Yuexiu Property and LVGEM (China) Real Estate
Investment have reportedly resumed overseas bond financing, the
China Securities Journal said, citing data monitored by China Index
Academy.
It said the total non-bank financing of Chinese real-estate
developers amounted to CNY52.98 billion in May, which was a decline
of 24 percent year-on-year and 27 percent from April, The Standard
relates.
This came as Societe Generale sees China's housing sector peaking
as household confidence in the sector has been permanently damaged.
"Small cities find it difficult to see any recovery, and larger
cities are just hanging on," the report quotes Yao Wei, the chief
economist and head of research Asia Pacific, as saying.
About Dalian Wanda
Dalian Wanda Commercial Management Group Co., Ltd. operates as a
commercial property developer, owner, and operator. The Company
develops and manages mixed-use property projects including retail,
office, hotel, residential, restaurant, entertainment, and other
projects. Dalian Wanda Commercial Management Group conducts
businesses in China.
As reported in the Troubled Company Reporter-Asia Pacific in early
May 2023, Moody's Investors Service has downgraded Dalian Wanda
Commercial Management Group Co., Ltd.'s (DWCM) corporate family
rating to Ba2 from Ba1.
The TCR-AP reported on June 7, 2023, S&P Global Ratings lowered its
long-term issuer credit rating on China-based Dalian Wanda
Commercial Management Group Co. Ltd. (Wanda Commercial) to 'BB'
from 'BB+'. At the same time, S&P lowered the long-term issuer
credit rating on Wanda Commercial Properties (Hong Kong) Co. Ltd.
(Wanda HK) and the long-term issue rating on the senior unsecured
notes Wanda HK guarantees to 'BB-' from 'BB'. All the ratings
remain on CreditWatch, where they were placed with negative
implications on April 28, 2023.
S&P said, "We expect to resolve the CreditWatch once we have
details that allow us to assess the likelihood of the listing of
Zhuhai Wanda and Wanda Commercial's other back-up plans. We will
also assess the credit profile, especially liquidity position, of
Wanda Commercial and DWG.
"We downgraded Wanda Commercial due to its parent's weakening
liquidity. We see heightened risks from DWG's narrowing financing
channels due to extended delay in Zhuhai Wanda's IPO. Weaker
property sales than we expected for Wanda Properties Group Co. Ltd.
(Wanda Properties), a sister company of Wanda Commercial, have
worsened the situation for the group."
The liquidity of Dalian Wanda Group (DWG), the parent of
China-based Dalian Wanda Commercial Management Group Co. Ltd.
(Wanda Commercial), has weakened. This is amid rising uncertainty
on the listing of Zhuhai Wanda Commercial Management Group Co. Ltd.
(Zhuhai Wanda, a subsidiary of Wanda Commercial) and headwinds for
the property development business.
DEER INVESTMENT: Moody's Lowers CFR to B3, Outlook Remains Stable
-----------------------------------------------------------------
Moody's Investors Service has downgraded Deer Investment Holdings
Limited's corporate family rating to B3 from B2. The rating outlook
remains stable.
"The rating downgrade reflects Moody's view that Deer's financial
leverage will remain elevated over the next 12-18 months given its
slower earnings growth than Moody's previous expectations," says
Shawn Xiong, a Moody's Vice President and Senior Analyst.
"The downgrade also considers Deer's reduced cash buffer as it
could generate negative free cash flows over the next 12-18 months,
though the risk is mitigated by an undrawn revolving credit
facility," adds Xiong.
RATINGS RATIONALE
Moody's assessed Deer's financial performance when considering HCP
Global Limited's (HCP) financial profile because HCP has become
Deer's only operating subsidiary upon the completion of the
acquisition by the Carlyle Group in August 2022. Deer's 2022
financial metrics are calculated as if the acquisition of HCP had
been completed on January 1, 2022 ("pro-forma").
Deer's B3 CFR reflects its long operating track record, established
customer relationships and strong market position. These strengths
are counterbalanced by its relatively small operating scale in a
highly fragmented market, focused product portfolio and high
customer concentration, operation in a cyclical and competitive
industry, expected negative free cash flows and reduced liquidity
buffer.
Deer's financial leverage, as measured by Moody's-adjusted
debt/EBITDA, was around 10.0x-10.5x based on pro-forma numbers for
2022, primarily driven by weaker demand in China as a result of
pandemic-related disruptions. Moody's expects its financial
leverage to improve but remain elevated in the range of 7.5x-8.0x
over the next 12-18 months. This is significantly higher than
Moody's previous expectations of Deer's financial leverage
improving towards 5.5x-6.0x in 2023.
Moody's expects the company's revenue to grow 8%-10% for 2023
whilst its adjusted EBITDA margin will increase to around 19%
driven by revenue recovery, cost controls and more normalized costs
as pandemic-related disruptions subside.
Deer's rating also considers the company's private company status,
which results in low corporate transparency.
Deer's liquidity is adequate. Its liquidity is supported by a cash
balance that Moody's estimates to be $29 million as of the end of
June 2023 and a $75 million undrawn revolving credit facility that
Moody's expects to be partially utilized to cover the expected
negative free cash flow over the next 12-18 months. The company
will not have any material debt maturity until 2029.
ENVIRONMENTAL, SOCIAL, GOVERNANCE (ESG) CONSIDERATIONS
Deer is exposed to ESG risks such as waste and pollution as well as
demographic and societal trends, both linked to the production of
plastic packaging.
The company's governance reflects its concentrated ownership, short
operating track record under a new private equity owner and less
transparent reporting as a private company.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
The stable outlook reflects Moody's expectation that Deer's
operating performance will gradually recover, supported by demand
growth and cost control; and that its financial leverage will
improve over the next 12 to 18 months, while maintaining adequate
liquidity. The stable outlook also assumes that the company will
not embark on any material debt-funded acquisitions or shareholder
distributions.
Positive rating momentum could emerge if Deer can improve its
Moody's-adjusted leverage towards 6.0x on a sustained basis with
ongoing visible positive free cash flow generation while it
maintains an adequate liquidity profile.
Conversely, Moody's could downgrade the rating if the company's
cash burn persists and exhausts the committed revolving facility.
Downward pressure on the rating could also arise if the company's
EBITDA/interest expense falls below 1x.
The principal methodology used in this rating was Packaging
Manufacturers: Metal, Glass and Plastic Containers published in
December 2021.
Founded in 1960, HCP Global Limited (HCP) currently has 10
manufacturing plants and 11 sales offices across China, Europe and
America. Upon completion of the acquisition, the Carlyle Group owns
a 100% stake in HCP through its various intermediate holding
companies, including Deer.
VNET GROUP: S&P Places 'B' LT Issuer Rating on CreditWatch Negative
-------------------------------------------------------------------
On June 13, 2023, S&P Global Ratings placed its 'B' long-term
issuer rating on VNET Group Inc. on CreditWatch with negative
implications.
The CreditWatch placement reflects heightening refinancing risk if
VNET is unable to raise significant capital within the next four
weeks.
Lack of immediate and substantial progress in raising capital
increases refinancing risk for VNET. S&P estimates the company
faces a liquidity shortfall of Chinese renminbi (RMB) 1.3-RMB1.4
billion. This includes US$600 million convertible notes that are
puttable in February 2024. The company has some options before the
put option matures. It could turn to domestic bank loans, offshore
capital markets, other financing channels, and reduction in capital
expenditure (capex).
However, further delays in capital raising could significantly
narrow the company's options, considering the challenges of high
interest rates and depressed market sentiment.
S&P's shortfall estimate considers VNET's cash balance of RMB2.9
billion, operating cash flows of RMB1.4 billion-RMB1.6 billion,
maturities of RMB5.1 billion, and maintenance or committed capex
that we estimate at about RMB2 billion, of which a majority could
be financed by onshore credit facilities.
Growing onshore credit facilities provide liquidity support. VNET's
access to onshore credit facilities could help fund a majority of
its capex during 2023. Such facilities will provide additional
liquidity support, though the use of proceeds will be limited to
funding existing and future projects, and not for refinancing of
U.S. dollar-denominated maturities.
The CreditWatch placement with negative implications reflects
VNET's increasing refinancing risk, with US$600 million convertible
notes becoming puttable within the next eight months.
S&P could downgrade VNET by one or more notches if the company does
not make very substantial progress on refinancing the US$600
million convertible notes by mid-July.
S&P would resolve the CreditWatch if VNET made very substantial
progress in its refinancing plan by mid-July such that the company
has enough liquidity to repay the US$600 million convertible notes
and maintains enough cash resources for operations.
ESG credit indicators: E-3, S-2, G-3
=========
I N D I A
=========
AABHARAN JEWELLERY: CRISIL Reaffirms B+ Rating on INR6.5cr Loan
---------------------------------------------------------------
CRISIL Ratings has reaffirmed its rating on the bank facilities of
Aabharan Jewellery (AJ) at 'CRISIL B+/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6.5 CRISIL B+/Stable (Reaffirmed)
Cash Credit 0.25 CRISIL B+/Stable (Reaffirmed)
Long Term Loan 6.25 CRISIL B+/Stable (Reaffirmed)
Proposed Working
Capital Facility 0.75 CRISIL B+/Stable (Reaffirmed)
Working Capital
Term Loan 3.75 CRISIL B+/Stable (Reaffirmed)
The rating continues to reflect modest scale of operations in the
intensely competitive jewellery retail industry, large working
capital requirement and susceptibility to volatile gold prices.
These weaknesses are partially offset by the extensive experience
of the promoters of AJ and above-average financial risk profile.
Key Rating Drivers & Detailed Description
Weaknesses:
* Large working capital requirement: Jewellery retailers have to
maintain large inventory in the form of variety of designs in order
to meet customer demand. Thus, operations are expected to remain
working capital intensive as the firm maintains 5 - 6 months of
inventory.
* Exposure to intense competition: Jewellery retailing in India is
dominated by unorganised players who have a stronghold in their
regions. As the firm expands, it will face competition from local
players. The jewellery sector has seen heightened regulatory action
in the past and AJ will remain susceptible to changing regulatory
norms.
* Susceptibility to volatility in gold prices: Fluctuations in gold
prices have led to operating margin of 7.5 – 9% over the three
fiscals through 2022. Any sharp increase in gold prices can impact
the profitability of AJ as well as the demand-supply scenario.
Strengths:
* Extensive experience of the partners: Benefits from the partner
experience of more than six decades in the jewelry segment should
continue to support business risk profile.
* Above-average financial risk profile: Networth and gearing are at
around INR13 crore and 0.91 times, respectively, as on March 31,
2023. Total outside liabilities to tangible networth ratio is
strong at 1.01 times as on 31st March 2023. Debt coverage
indicators are expected to remain robust over the medium term
Liquidity: Stretched
Bank limit utilization is high around 97.50 percent for the past
twelve months ended April 2023.
Cash accrual are expected to be over INR1 crore which are
sufficient against term debt obligation of INR0.8-1.20 crores over
the medium term. In addition, it will be act as cushion to the
liquidity of the company.
Current ratioS are healthy at 1.54 times on March 31, 2023.
The promoters are likely to extend support in the form of equity
and unsecured loans to meet its working capital requirements and
repayment obligations.
Outlook: Stable
CRISIL Ratings believes AJ will continue to benefit from the
extensive experience of its partners.
Rating Sensitivity factors
Upward factors:
* Sustained growth in revenue and steady operating margin leading
to higher cash accrual of above 1.50 crore
* Improvement in working capital cycle
Downward factors:
* Decline in revenue or operating margin leading to net cash
accrual below INR0.75 crore
* Substantial increase in working capital requirement adversely
affecting financial risk profile, especially liquidity
Set up in October 2014 as a partnership firm by Mr. Bommisethi Ravi
Kumar (in the jewellery business since 1957), Mr. Bommisethi
Mallikarjuna Rao and Mr. Bommisethi Eswar Kumar, AJ runs a
jewellery retail storeroom in Ongole, Andhra Pradesh.
ABM INT'L: CRISIL Lowers Rating on INR2cr Loan to B-
----------------------------------------------------
CRISIL Ratings has revised the ratings on bank facilities of ABM
International Limited (ABM) to 'CRISIL B-/Stable/CRISIL A4 Issuer
Not Cooperating' from 'CRISIL BB-/Stable/CRISIL A4+ Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Letter of Credit 33 CRISIL A4 (ISSUER NOT
COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
Overdraft Facility 2 CRISIL B-/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER
NOT COOPERATING')
Proposed Non Fund 15 CRISIL A4 (ISSUER NOT
based limits COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with ABM for
obtaining information through letters and emails dated December 21,
2022, December 26, 2022, May 31, 2023 and June 1, 2023, among
others, apart from telephonic communication. However, the issuer
has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Basis publicly available information, CRISIL Ratings notes that
ABM's performance has materially deteriorated in fiscal 2023 and
this is reflected in nearly 33% year-on-year decline in revenue to
INR85.4 crore in fiscal 2023; company has reported net losses of
INR6.7 crore in fiscal 2023 as compared to net profit of INR1.4
crore in fiscal 2022 and INR10.2 crore in fiscal 2021. However,
despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of ABM, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality.
Based on the last available information and lack of management
cooperation, the ratings on bank facilities of ABM have been
revised to 'CRISIL B-/Stable/CRISIL A4 Issuer Not Cooperating' from
'CRISIL BB-/Stable/CRISIL A4+ Issuer Not Cooperating'. CRISIL
Ratings believes that rating action on ABM is consistent with
'Assessing Information Adequacy Risk'.
Incorporated in 1965 by the promoter, Mr V K Gandhi, ABM imports
PVC resin, polypropylene and high-density polyethylene. The company
is based in New Delhi.
ADANI GROUP: In Talks for Major Debt Refinancing After Hindenburg
-----------------------------------------------------------------
Bloomberg News reports that Adani Group is in talks with lenders,
including global banks, as it seeks to refinance up to $3.8 billion
of a loan facility taken for its acquisition of Ambuja Cements Ltd.
last year, said people familiar with the matter.
Bloomberg relates that the ports-to-power conglomerate owned by
Indian tycoon Gautam Adani is mulling whether to convert the
original loan into debt with a longer maturity period and has
started talking to banks individually about that plan, said the
people, who asked not to be identified as the discussions are
private.
According to Bloomberg, the effort is a significant test of whether
global credit lines will open up to the company again after US
shortseller Hindenburg accused the Adani Group of widespread
corporate malfeasance in January. Adani has denied the
allegations.
Adani is expecting to conclude the process within three to four
months and most of the existing lenders are expected to
participate, the people said.
Banks such as Barclays Plc, Deutsche Bank AG, Standard Chartered
Plc and Mitsubishi UFJ Financial Group Inc. are in talks to
participate in the refinancing deal, while some of the lenders have
gone to their respective international credit teams for approval
for the arrangement, the people, as cited by Bloomberg, said.
Barclays, Deutsche, MUFG and Standard Chartered declined to
comment. The deal is not yet finalized and may not proceed.
If the plan moves ahead, it would be the latest sign of the
conglomerate returning to business-as-usual after months of damage
control following Hindenburg's scathing broadside that at one point
shaved off over $150 billion from the company's stocks, Bloomberg
notes.
A panel of experts appointed by the India's Supreme Court also said
in a report last month that there's no regulatory failure or
wrongdoing behind the wild swings of Adani stocks, Bloomberg says.
Still, another verdict is expected from the India's securities
watchdog in August after finishing its probe into the shortseller's
allegations against Adani Group.
Bloomberg says Adani's purchase of Holcim AG's Indian cement assets
last year made the billionaire's conglomerate the country's
second-largest producer of the construction material. To finance
that deal, bridge loans maturing in 2023 and 2024 were taken out by
Mauritius-domiciled Endeavour Trade & Investment, the Adani Group
vehicle that acquired Holcim's cement business.
Adani Enterprises Limited is a holding company. The Company is an
integrated infrastructure with businesses spanning coal trading,
coal mining, oil and gas exploration, ports, multi-model logistics,
power generation and transmission, gas distribution, and edible oil
and agro commodities.
ANDHRA PRADESH: CRISIL Lowers Rating on INR5cr Cash Loan to B-
--------------------------------------------------------------
CRISIL Ratings has revised the rating on bank facilities of Andhra
Pradesh Gas Power Corporation Limited (AP Gas) to 'CRISIL
B-/Stable/CRISIL A4 Issuer Not Cooperating' from 'CRISIL
BB+/Stable/CRISIL A4+ Issuer Not Cooperating'
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 100 CRISIL A4 (ISSUER NOT
COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
Cash Credit 5 CRISIL B-/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER
NOT COOPERATING*')
Proposed Bank 45 CRISIL A4 (ISSUER NOT
Guarantee COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with AP Gas for
obtaining information through letters and emails dated January 13,
2023, and January 18, 2023 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such
non-co-operation by a rated entity may be a result of deterioration
in its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of AP Gas, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AP
Gas is consistent with 'Assessing Information Adequacy Risk'.
Further CRISIL Ratings notes that operations of AP Gas are
suspended. Therefore, on account of inadequate information and lack
of management cooperation, CRISIL Ratings has revised the rating on
bank facilities of AP Gas to 'CRISIL B-/Stable/CRISIL A4 Issuer Not
Cooperating' from 'CRISIL BB+/Stable/CRISIL A4+ Issuer Not
Cooperating'
APGPCL generates and supplies gas-based power to industrial
consumers in Andhra Pradesh and Telangana. The company has an
aggregate installed capacity of 272 megawatt (MW). According to
APGPCL's MoU with its shareholders, who are also its clients, the
company sells power in proportion to the customers' shareholding in
the company. APGPCL sets tariff for customers, as the company is
essentially a captive power plant, and is not governed by the
APERC. TGV SRAAC Ltd, The Andhra Sugars Ltd and The India Cements
Ltd are the major shareholders currently.
ASHOK BRICKS: ICRA Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
ICRA has retained the Long-Term and Short-Term rating of Ashok
Bricks Industries Private Limited in the 'Issuer Not Cooperating'
category. The ratings are denoted as "[ICRA]D/[ICRA]D; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 11.50 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term– 0.47 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Long-term/ 20.00 [ICRA]D/[ICRA]D; ISSUER NOT
Short Term COOPERATING; Rating Continues to
Non Fund Based remain under 'Issuer Not
Others Cooperating' Category
Long-term/ 0.03 [ICRA]D/[ICRA]D; ISSUER NOT
Short Term COOPERATING; Rating Continues to
Unallocated remain under 'Issuer Not
Cooperating' Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Incorporated in August 2011 by Mr. Anil Agarwal and Mr. Mukesh
Agarwal, Ayaan Trendz Private Limited is engaged in manufacturing
and domestic sales of embroidered and printed sarees. The company
is part of the Vipul Group based in Surat, Gujarat. The group is
engaged in the textile business for over three decades through
other group companies, including Vipul Industries Private Limited
(VIPL). ATPL started commercial production of sarees from November
2011. The company procures grey material from the local suppliers
in Surat, outsources the dyeing and printing activities to VIPL
while undertaking the embroidery work in-house.
B S R POULTRY: CRISIL Withdraws B Rating on INR11.5cr Cash Loan
---------------------------------------------------------------
Due to inadequate information, CRISIL Rating, in line with SEBI
guidelines, had migrated the rating of B S R Poultry Farm (BSR) to
'CRISIL B/Stable Issuer Not Cooperating'. However, the management
has subsequently started sharing requisite information, necessary
for carrying out comprehensive review of the rating. Consequently,
CRISIL Ratings is migrating the rating on bank facilities of BSR
from 'CRISIL B/Stable Issuer Not Cooperating' to 'CRISIL B/Stable'
and subsequently withdrawn the ratings at the company's request and
on receipt of a no-objection certificate from the bankers. This is
in line with the policy of CRISIL Ratings regarding withdrawal of
bank loan ratings.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 11.5 CRISIL B/Stable (Rating
Migrated and Withdrawn)
Long Term Loan 3.5 CRISIL B/Stable (Rating
Migrated and Withdrawn)
The rating continues to reflect promoters' extensive experience and
established client relationship. The strength gets partially offset
by modest scale of operations in the fragmented poultry industry
and below average financial risk profile because of high gearing
and small networth.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations: With revenue estimated at INR128.97
crore for the period ending March 31, 2023, scale of operations
continues to remain modest in the intensely competitive poultry
industry, which is driven by regional demand and supply factors due
to transportation constraints and perishable nature of the product.
Limited brand recall also increases the impact of competition from
the unorganized segment. However, with the increase in their bird
capacity, CRISIL expects the scale of operations of BSR to improve
over the medium term.
* Below Average financial risk profile: Gearing is high estimated
at around 7.34 times as on March 31, 2023, while networth continues
to remain modest estimated at INR7.87 crore for fiscal 2023. Debt
protection metrics are modest with interest coverage ratio
estimated at 1.5 times as on March 31, 2023, which is expected to
improve over the medium term
Strengths:
* Extensive experience of promoters and established customer
relationship: The firm's promoters have been in the poultry
business for the past 30 years, leading to established relationship
with key supplier, Venkateshwara Hatcheries Pvt Ltd.
Liquidity: Stretched
The liquidity risk profile of the firm is expected to remain
stretched over the medium term, with expected net cash accruals of
around INR2.5- 4 crore as against the repayments of INR3 - 4 crore
over the medium term. High bank limit utilisation of the bank
limits around 97% for period of 12 months ending April 2023.
Liquidity is further supported by unsecured loans extended by
promoters infused around INR4 crore as on March 31,2023.
Outlook: Stable
CRISIL Ratings believes BSR will continue to benefit over the
medium term from promoters' experience in the poultry industry
Rating Sensitivity factors
Upward factors:
* Substantial increase in turnover and operating profitability
leading to cash accruals of more than INR3.5 crs
* Improvement in debt protection metrics.
Downward factors:
* Decline in operating profitability to less than 3 percent,
resulting in weaker cash accrual.
* Any further large debt funded capital expenditure which may
impact the financial risk profile and liquidity risk profile
adversely.
Established in 1990 in Devangere, Karnataka, as a partnership firm
by Mr. Reddy. BSR is engaged in the poultry business. Operations
are managed by Mr D Brahamananda Reddy.
BANSHIDHAR CONSTRUCTION: CRISIL Withdraws B+ Debt Ratings
---------------------------------------------------------
CRISIL Ratings has withdrawn its rating on the bank facilities of
Banshidhar Construction Private Limited (BCPL) on the request of
the company and after receiving no objection certificate from the
bank. The rating action is in-line with CRISIL Rating's policy on
withdrawal of its rating on bank loan facilities.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 8.1 CRISIL B+/Stable/Issuer Not
Cooperating (Withdrawn)
Long Term Loan 0.65 CRISIL B+/Stable/Issuer Not
Cooperating (Withdrawn)
CRISIL Ratings has been consistently following up with BCPL for
obtaining information through letters and emails dated May 10, 2022
and July 11, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of BCPL. This restricts CRISIL
Ratings' ability to take a forward looking view on the credit
quality of the entity. CRISIL Ratings believes that rating action
on BCPL is consistent with 'Assessing Information Adequacy Risk'.
CRISIL Ratings has Continues the ratings on the bank facilities of
BCPL to 'CRISIL B+/Stable Issuer not cooperating'.
BCPL, incorporated in 2007-08 (refers to financial year, April 1 to
March 31), undertakes construction of roads, and irrigation
projects for Water Resource Department for Bihar. The company is
promoted by Mr. Subhash Yadav, Mr. Ram Prasad Rai, Mr. Ashok Rai,
and Mr. Dev Prasad.
CYGNUS SPLENDID: ICRA Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has retained the Long-Term rating of Cygnus Splendid Limited
in the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 3.64 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term– 9.50 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Cygnus Splendid Limited started its business as a partnership firm
under the name of Cygnus Splendid in 2011. It was later
incorporated as CSL in August 2012 and is a part of the Cygnus
Group. The company is promoted by Singhania family (Krishna Kumar
Singhania, Vijay Kumar Singhania, etc.) and is involved in
manufacturing of nonwoven fabric and trading of fabric. The
manufacturing facility is located at the KIE industrial area, New
Delhi, and has an installed capacity of 7200 metric tonnes per
annum (MTPA). The plant started operations in April 2013.
DAYAL ENERGY: CRISIL Withdraws D Rating on INR13.3cr Whse Debt
--------------------------------------------------------------
CRISIL Ratings has withdrawn its rating on the bank facilities of
Dayal Energy and Proteins Private Limited (DEPL) on the request of
the company and receipt of a no objection certificate from its
bank. The rating action is in line with CRISIL Ratings' policy on
withdrawal of its ratings on bank loans.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Warehouse Financing 13.3 CRISIL D/Issuer Not
Cooperating (Withdrawn)
CRISIL Ratings has been consistently following up with DEPL for
obtaining information through letters and emails dated August 19,
2021, October 06, 2021 and October 21, 2022, among others, apart
from telephonic communication. However, the issuer has remained non
cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of DEPL. This restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on DEPL
is consistent with 'Assessing Information Adequacy Risk'.Based on
the last available information, the rating on bank facilities of
DEPL continues to be 'CRISIL D Issuer Not Cooperating'.
DEPL, based in Akola, Maharashtra, and promoted by Bachuka family,
is a soya bean oil extractor and refiner. It has a solvent
extraction capacity of 800 tonne per day (tpd) and refining
capacity of 110 tpd. It extracts refined soya oil and crude soya
oil, and produces soya de-oiled cakes. The refined oil is also sold
and marketed under the brand All Day.
DHANALAKSHMI SRINIVASAN: ICRA Keeps D Rating in Not Cooperating
---------------------------------------------------------------
ICRA has retained the long-term rating for the bank facilities of
Dhanalakshmi Srinivasan Charitable And Educational Trust in the
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 28.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
DS Group was established in 1994 by Mr. Srinivasan, with an
objective to run charitable institutions, educational institutions
and hospitals. DS group of trusts (including a private limited
company) operate engineering colleges, medical college, hospital,
polytechnic college and hotel in which location. The group runs
three trusts and a private limited company which encompasses 23
colleges (6 – Engineering, 1 – Agricultural, 2 – Pharmacy, 3
– Arts & Science, 2 – Polytechnic, 3 – Nursing, 4 –
Educational, 2 - Medical), 2 hospitals, 3 schools and 1 hotel. The
institutes are present in 3 locations in Tamil Nadu (Perambalur,
Chennai & Trichy).
FRONTIER KNITTERS: CRISIL Reaffirms B+ Rating on INR36cr Loan
-------------------------------------------------------------
CRISIL Ratings has reaffirmed its rating on the bank facilities of
Frontier Knitters Private Limited (FKPL) at 'CRISIL
B+/Stable/CRISIL A4'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Export Packing
Credit 36 CRISIL B+/Stable (Reaffirmed)
Foreign Bill
Discounting 12 CRISIL A4 (Reaffirmed)
Letter of Credit 6.1 CRISIL A4 (Reaffirmed)
Long Term Loan 4.9 CRISIL B+/Stable (Reaffirmed)
Proposed Fund-
Based Bank Limits 16.83 CRISIL B+/Stable (Reaffirmed)
Standby Fund-
Based Limits 8.2 CRISIL B+/Stable (Reaffirmed)
Working Capital
Term Loan 12.47 CRISIL B+/Stable (Reaffirmed)
Working Capital
Term Loan 10.5 CRISIL B+/Stable (Reaffirmed)
The ratings continue to reflect FKPL's working capital-intensive
operations and below average financial risk profile. These
weaknesses are partially offset by extensive experience of the
promoters and established relationships with customers.
Key Rating Drivers & Detailed Description
Weaknesses:
* Working capital-intensive operations: Estimated gross current
assets (GCA) were 291 days as on March 31, 2023, due to large
inventory of over 246 days. Large working capital requirement
continues to constrain the operating efficiency of the company as
reflected in its Return on Capital Employed of less than 5 times
during the last 3 years ended fiscal 2023.
* Below average financial risk profile: Capital structure is
moderate, with estimated networth and gearing of INR47.93 crore and
1.44 times, respectively, as on March 31, 2023. Debt protection
metrics were low, with estimated interest coverage of 2 time in
fiscal 2023. Financial risk profile is expected to improve with
steady accretions to reserves and no major debt funded capex plans
over the medium term.
Strength:
* Extensive experience of the promoters and established
relationships with customers: FKPL benefits from the experience of
over two decades of its promoters and established strong
relationship with the customers that the firm has been associated
for over 10 years. Ability to maintain healthy product quality
while meeting the stringent delivery deadlines of customers enabled
the firm to obtain repeat orders over the past few years which has
boosted the revenue visibility of the firm.
Liquidity: Stretched
Bank limit utilization is high at around 97.85 percent for the past
twelve months ended April 2023. Cash accruals are expected to be
over INR7 - INR8 crores which are sufficient against term debt
obligation of INR4–INR6 crores over the medium term. In addition,
it will be act as cushion to the liquidity of the company.
Estimated current ratio are moderate at 1.27 times on March 31,
2023. The promoters are likely to extend support in the form of
equity and unsecured loans to meet its working capital requirements
and repayment obligations.
Outlook: Stable
CRISIL Ratings believes that FKPL will maintain its business risk
profile, supported by established customer relationship, over the
medium term.
Rating Sensitivity factors
Upward factors:
* Net cash accrual to repayment of more than 1.3 times
* Reduction in working capital requirement leading to improvement
in liquidity
Downward factors:
* Accruals to repayment of less than 1.2 times
* GCA of more than 300 days leading to deterioration of liquidity
Established as a partnership firm in 1988 by Mr Mohammed Thajutheen
in Tiruppur, Tamil Nadu, and reconstituted as a private limited
company in October 2010, FKPL manufactures and exports a wide range
of knitted garments.
GAYATRI DEVELOPWELL: ICRA Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------------
ICRA has retained the Long-Term rating of Gayatri Developwell Pvt.
Ltd. in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]D ;ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 13.50 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
GDPL is part of the Agra based Gayatri group. Promoted by Mr. Hari
Om Dixit and Mr. Devendra Dixit, the group has executed row houses
and multi-storey apartment projects in Agra and Mathura over the
six to seven years. The company is executing a multi-storey
apartments project called Gayatri Manhar Gardens on Sikandra Bodla
road in Agra. Launched in end of 2012, the project consists of 168
two and three BHK flats. The project cost of INR37.25 crore is
being funded by term loan of INR13.5 crore, promoter contribution
of INR8.5 crore and balance customer advances. Apart from this, the
group has various another ongoing project included Gayatri Aura
which is large residential project in Greater Noida West, UP.
J.S.R. CONSTRUCTIONS: CRISIL Hikes Rating on INR1cr LT Loan to B-
-----------------------------------------------------------------
Due to inadequate information, CRISIL Ratings, in line with SEBI
guidelines, had migrated the rating of J.S.R. Constructions Private
Limited (JSR) to 'CRISIL D/CRISIL D Issuer Not Cooperating'.
However, the management has subsequently started sharing requisite
information, necessary for carrying out comprehensive review of the
rating. Consequently, CRISIL Ratings is migrating the rating on
bank facilities of JSR to 'CRISIL B-/Stable/CRISIL A4' from 'CRISIL
D/CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 45 CRISIL A4 (Migrated from
'CRISIL D ISSUER NOT
COOPERATING')
Proposed Long Term 1 CRISIL B-/Stable (Migrated
Bank Loan Facility from 'CRISIL D ISSUER NOT
COOPERATING')
The ratings migrated reflects track record of timely repayment of
debt owing to improved liquidity.
The ratings reflect the JSR's modest scale of operations in the
civil construction industry and its modest financial risk profile.
These weaknesses are partially offset by the extensive experience
the promoters have in the industry.
Analytical Approach: Consolidated
CRISIL Ratings has consolidated the business and financial risk
profiles of JSR constructions Private Limited and the PSV JSR
Mulbagal Tollways Private Limited since the entities have
significant business and financial fungibility.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations in the civil construction industry:
JSR generated a revenue of INR138.01 crore for fiscal 22 as against
INR78.86 crore in fiscal 21 and is expected to be around INR159
crore for fiscal 23,thus reflecting modest scale amid intense
competition. The recovery in revenues is on account of extensive
experience of the promoters in the industry and due to established
relations with clients resulting in repeat and steady order book.
* Modest financial risk profile: The overall financial risk profile
is expected to be average marked by an average capital structure
and debt protection metrics. The net worth is estimated at around
INR50.41 cr as on March 31, 2023. The accretion to reserves was
modest on account of operating profitability. Hence, the net worth
is expected to remain small over the medium term. The gearing is
moderate estimated at around 2.20 times as on March 31, 2023. The
debt protection metrics are weak marked by an interest coverage of
around 1.91 times and NCAAD of around 0.05 percent for fiscal
2023.
Strength:
* Promoter's extensive experience in the civil construction
industry: The extensive experience of the promoters in the civil
construction industry, and established relationships with customers
and suppliers, will continue to support the business risk profile.
Liquidity: Stretched
Bank limit utilisation is moderate at around 80.88 percent for the
past twelve months ended February 2023. Cash accrual are expected
to be over INR6-7 crore which are insufficient for obligations to
the tune of INR11 crore in the medium term. The promoters are
likely to extend support in the form of equity and unsecured loans
to meet its working capital requirements and repayment obligations
Promoters brought in unsecured loans of INR7 crore brought in
fiscal 2022-23 to support the repayment obligations. Current ratio
are healthy at 1.44 times on March31, 2022.The promoters are likely
to extend support in the form of equity and unsecured loans to meet
its working capital requirements and repayment obligations.
Outlook: Stable
CRISIL Ratings believes the firm will continue to benefit over the
medium term from the extensive experience of its promoters
Rating Sensitivity factors
Upward factors:
* Correction of cash flow mismatch in the SPV projects JSR Mulbagal
Tollways Private Limited along with NCA to accruals to be above
1x.
* Sustained improvement in scale of operation by 20% and sustenance
of operating margin, leading to higher cash accruals
* Improvement in working capital cycle with debtor realization
below 100 days
Downward factors:
* Decline in profitability or stretch in working capital cycle with
debtor realizations above 150 days
* Decline in operating profitability by over 200 basis points on a
sustainable basis
Established in 1972 as a proprietary concern by Mr. J. Srinivasulu
Reddy, it was rechristened in 1990 as JSR Construction Pvt Ltd
(JSR). Located in Bangalore, Karnataka, JSR is engaged in
construction of roads, canals and other allied civil construction.
JSR was concentrating on irrigation works till 2001. Subsequently,
JSR has been focusing majorly focusing on road projects. The
company is a registered Special Class (Civil) contractor with
Irrigation (PWD) Department of Andhra Pradesh and Gujarat. It is
also a registered Class 1 Contractors in PWD ' Karnataka and
Category-1 with Karnataka Neeravari Nigam Ltd.
JOY BHARAT: CRISIL Reaffirms B+ Rating on INR5.9cr Cash Loan
------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL A4' rating to the short
termbank facility of Joy Bharat Oil Mills (JBOM) and reaffirmed the
long term rating at 'CRISIL B+/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5.9 CRISIL B+/Stable (Reaffirmed)
Proposed Cash
Credit Limit 0.3 CRISIL B+/Stable (Reaffirmed)
Proposed Working
Capital Facility 2 CRISIL B+/Stable (Reaffirmed)
Standby Line
of Credit 0.58 CRISIL A4 (Assigned)
Working Capital
Demand Loan 0.22 CRISIL B+/Stable (Reaffirmed)
The ratings reflect exposure to intense competition and small scale
of operations. These weaknesses are partially offset by the
extensive experience of the partners in the edible oil industry.
Key Rating Drivers & Detailed Description
Weaknesses:
* Exposure to intense competition: The edible oil industry is
highly fragmented with a few large players and several small,
unorganised players. Servicing around 60% of the industry, the
unorganised players cater to regional demand to save transportation
cost. Intense competition restricts the operating margin of players
such as JBOM.
* Modest scale of operations: Intense competition constrains
scalability, as reflected in estimated revenue of around INR23.8
crore in fiscal 2023 (against INR19.34 crore in fiscal 2022), and
operating flexibility.
Strength:
* Extensive experience of the partners: The partners have
experience of over two decades in the edible oil industry. This has
helped them to develop strong understanding of market dynamics and
healthy relationships with suppliers and customers, which will
continue to support the business.
Liquidity: Stretched
Expected cash accrual of INR0.8-1.0 crore per annum will be
sufficient against nil yearly debt obligation over the medium term.
Bank limit utilisation was moderate at 61% on average over the 12
months through March 2023. Current ratio was healthy estimated at
1.37 times as on March 31, 2023.
Outlook: Stable
CRISIL Ratings believes JBOM will continue to benefit from the
extensive experience of its partners and established relationships
with clients.
Rating Sensitivity factors
Upward factors:
* Increase in revenue by 20% and sustenance of operating margin
leading to higher cash accrual
* Better financial risk profile with comfortable capital structure
Downward factors:
* Operating margin falling below 4% over the medium term leading to
lower cash accrual
* Large, debt-funded capital expenditure or stretched working
capital cycle weakening the financial risk profile
Set up in 2015 as a partnership firm by Mr Ashok Kumar Choudhury
and Ms Mina Devi Choudhury, JBOM manufactures mustard oil and
mustard oil cakes. The firm has a unit in Birbhum, West Bengal.
KUMBHI KASARI: CRISIL Assigns B- Rating to INR76.5cr Term Loan
--------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B-/Stable' rating to the
bank facilities of Kumbhi Kasari Sahakari Sakhar Karkhana Limited
(KKSSKL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 76.5 CRISIL B-/Stable (Assigned)
The rating reflects weak financial risk profile and stretched
liquidity position. The rating also factors in the modest scale and
exposure to cyclicality associated with the sugar business. These
weaknesses are partially offset by extensive experience of the
promoters and their established association with cane suppliers.
Key Rating Drivers & Detailed Description
Weaknesses:
* Weak financial risk profile: Financial profile is marked by
gearing of 1.71 and total outside liabilities to adjusted tangible
net worth (TOL/ANW) of 2.07 for year ending on 31st March 2022 on
account of high long term debt. Debt protection metrics remain
weak, as reflected in net cash accrual to adjusted debt at 0.02
times and interest coverage of around 1.09 times for fiscal 2022.
Society is undertaking debt funded Capex for commissioning of 30
KLPD distillery. Commercial operation of distillery is expected
from sugar crushing season 2023-24. Timely commissioning of
distillery and ramp-up in its operations remains critical.
* Working capital intensive operation: Working capital requirement
is marked by Gross current assets (GCAs) of more than 180 days as
on March 31, 2022, driven by high inventory days of over 4 months.
Operations shall remain working capital intensive due to seasonal
crushing and maintenance of high inventory and same shall be funded
largely with sugar pledged CC limits.
* Susceptibility to regulatory changes and cyclicality in the sugar
industry: Regulatory mechanisms and dependence on monsoon lead to
cyclicality in the sugar industry, which may impact KKSSKL
performance. The government regulates the domestic demand-supply
scenario by restricting imports and exports, as well as prices of
sugar cane. Moreover, presently society is majorly dependent on
sugar sales, which is susceptible to both sugar prices and
sugarcane prices to be paid to farmers. Shortage of sugar cane in
the region can also have an adverse impact on the operating
performance. Society has undertaken setup of distillery, commercial
operation of which is expected for SS-24. Timely execution and ramp
up of operation of distillery remains crucial.
Strength:
* Established market position backed by longstanding presence and
healthy relationships with member farmers: The society has an
operational track record of around six decades in the sugar
industry and has an established presence in the area of operation.
Its established presence and association with several member
farmers from nearby villages ensures regular supply of sugarcane.
The Board of representatives consists of directors elected by
member farmers and other directors are nominated by various
regulatory and industry bodies. The Board is supported by a
qualified management team. Long operational vintage and established
presence support the business.
Liquidity: Stretched
Cash accrual of INR11-25 crore expected per fiscal are tightly
matched against debt obligation of INR15-22 crore over the medium
term. Being a cooperative sugar factory, the society distributes
profit among the members (usually cane farmers) in the form of
incremental procurement prices for sugarcane. Accordingly, the
society generates low accrual. However, funds can be earmarked for
debt repayment and also sugar pledge limit of INR180 crore can be
used to cover its funding needs. Moreover, society always has an
option to retain profit in case of higher internal fund
requirement.
Outlook: Stable
CRISIL Ratings believe KKSSKL will continue to benefit from the
extensive experience of its promoter, and established relationships
with clients.
Rating Sensitivity factors
Upward factors:
* Sustained and significant growth in revenue and operating margin
leading to higher cash accrual of over Rs18 crore on consistent
basis.
* Better working capital management and improvement interest
coverage ratio on sustained basis
Downward factors:
* Weaker operating performance because of shortage of sugar cane
(crushing less than 5 lakh MT) or lower sugar realisations
* Increase in working capital requirement or large, debt-funded
capex weakening the liquidity and financial risk profile
KKSSKL was established as a co-operative society in 1960. KKSSKL
manufactures sugar and has its plant at Kolhapur, Maharashtra with
installed capacity of 5000 tonnes crushing per day (TCD). Also ,
sugar mill has a 17.5 MW captive power generation capacity, and is
setting up 30 KLPD Molasses based ethanol plant (or distillery).
KKSSKL's day-to-day operations are managed by Shri. Chandradeep
Shashikant Narake, Shri.Shamarao Bapu Godhade and Shri.Vishwanath
Annasaheb Shinde.
NEHA CONSTRUCTIONS: CRISIL Cuts Rating on INR3cr Loan to B-
-----------------------------------------------------------
CRISIL Ratings has downgraded the rating on the long-term bank
facility of Neha Constructions - Nagpur (NCN) to 'CRISIL B-/Stable'
from 'CRISIL B/Stable' while reaffirming the short term rating at
'CRISIL A4'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 4 CRISIL A4 (Reaffirmed)
Cash Credit 3 CRISIL B-/Stable (Downgraded
from 'CRISIL B/Stable')
Proposed Working
Capital Facility 2 CRISIL B-/Stable (Downgraded
from 'CRISIL B/Stable')
The rating actions reflects the deterioration in the business risk
profile mainly led by the deterioration in operational performance
with estimated revenues declining to INR5.3 crores in fiscal 2023
from INR18 crores in fiscal 2020. The lower-than-expected revenues
was driven by firm's limited ability to win tender. The firm
currently has unexecuted order book of INR2 to 5 crores which
provides modest revenue visibility. The liquidity profile of the
firm has also been affected due to lower-than-expected cash
accruals which are insufficient against the repayment obligations.
The ratings continue to reflect the modest scale of operations,
large working capital requirement and subdued debt protection
measure. These weaknesses are partially offset by the extensive
experience of the proprietor in the electrification industry and
moderate capital structure.
Analytical Approach
Unsecured loans from promoters of INR1.46 cr as on March 31, 2022
have been treated as debt
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations, tender-based business, and
geographical concentration in revenue: Operating income was
INR18.60 crore in fiscal 2020 and has dropped to INR6.2 cr in
fiscal 2022. This is due to disruptions caused on account of
covid-19. Further the firm has generated a revenue of INR5.38
crores in fiscal 2023, with additional orders expected and
unexecuted order book of INR5 crores, the revenues of the firm are
expected to be modest over the medium term. This is compounded by
intense competition and tender-driven business. Furthermore, since
most of the projects is in Maharashtra, the business risk profile
remains exposed to any change in government policy regarding
infrastructure investment.
* Large working capital requirement:Operations should remain
working capital-intensive, as reflected in gross current assets
(GCAs) of 650 days as on March 31, 2022, driven by stretched
receivables and inventory of 314 and 280 days. This is due to delay
in receiving payments from government authorities. Working capital
cycle though is expected to improve would continue to remain
intensive over the medium term.
* Subdued debt protection measures: Due to the decline in the scale
of operations the debt protection metrics of the firm has been
subdued with interest cover and net cash accruals to adjusted net
worth ratio of 1.27 times and -0.01 times as on March 21, 2022,
estimated to be around 1.2 to 1.25 times and 0.02 times as on March
31, 2023. The increase in the scale of operations and the
improvement in the debt protection measures remains a key
monitorable over the medium term
Strengths:
* Extensive experience of the proprietor: Presence of more than a
decade in the electrification industry has enabled the proprietor
to establish strong relationships with customers and ramp up
operations in the past few years.
* Moderate capital structure: Due to the limited reliance on the
outside borrowings the capital structure has been at moderate
levels as highlighted in the gearing and the total outside
liability to adjusted net worth ratio of 1.07 times and 1.23 times
as on March 31, 2022 estimated to be around 0.8 to 0.9 times and
0.9 to 1 times as on March 31, 2023. The capital structure is
further expected to improve in the absence of any debt funded
capital expenditure and steady accretion to the reserves
Liquidity: Poor
Bank limit utilization is high at around 99 percent for the past
twelve months ended March, 2023. Cash accruals are expected to be
over INR0.1-0.3 crore which would be insufficient against term debt
obligation of around INR0.4 cr in fiscal 2024.
Outlook: Stable
CRISIL Rating believes NC will continue to benefit from the
proprietor's extensive experience.
Rating Sensitivity factors
Upward factors
* Increase in revenues while maintaining stable margins leading to
cash accruals of more than INR0.5 crore
* Improvement in financial risk profile with interest coverage
above 1.5 times.
Downward factors
* A further decline in the revenues or decline in the operating
margins leading to net cash accruals below 0.2 crores.
* Any further stretch in the working capital cycle affecting the
liquidity and financial risk profile of the firm.
Established in 2003 as a proprietorship firm by Mr Dilip Vivekanad
Belsare, NC undertakes contracts for erection and stringing of
transmission lines for state and central government agencies. The
firm is registered with various government departments and with the
Indian Railways.
PERFECT INFRAENGINEERS: CRISIL Cuts Rating on LT/ST Loan to D
-------------------------------------------------------------
CRISIL Ratings has downgraded its ratings on the bank facilities of
Perfect Infraengineers Limited (PIL) to 'CRISIL D/CRISIL D Issuer
Not Cooperating' from 'CRISIL B-/Stable/CRISIL A4 Issuer Not
Cooperating' based on publicly available information.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Rating - CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B-/Stable ISSUER NOT
COOPERATING')
Short Term Rating - CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL A4 ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with PIL for
obtaining information through letters and emails dated February 25,
2023 and April 29, 2023 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such
non-co-operation by a rated entity may be a result of deterioration
in its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of PIL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PIL
is consistent with 'Assessing Information Adequacy Risk'.
Incorporated in 1993, PIL is a turnkey project contractor for the
supply, installation, testing, commissioning and maintenance of
mechanical, electrical and plumbing and heating, ventilation and
air conditioning equipment. In addition, it undertakes annual
maintenance contracts and supplies air conditioners on rental. It
is listed on the National Stock Exchange.
Status of non cooperation with previous CRA:
PIL has not cooperated with India Ratings And Research Private
Limited, which has classified it as 'Issuer not cooperative' vide
release dated 20th November 2018, citing non-furnishing of
information for monitoring of ratings.
PROGNOSYS MEDICAL: CRISIL Withdraws B- Rating on INR4cr Cash Loan
-----------------------------------------------------------------
CRISIL Ratings has reaffirmed its rating on the bank facility of
Prognosys Medical Systems Private Limited (PMSPL) and subsequently
withdrawn the ratings at the company's request and on receipt of
no-objection certificate from the bankers. The withdrawal is in
line with the CRISIL Ratings policy on withdrawal of bank loan
ratings.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 2 CRISIL A4 (Rating Reaffirmed
and Withdrawn)
Bank Guarantee 9 CRISIL A4 (Rating Reaffirmed
and Withdrawn)
Cash Credit 2.5 CRISIL B-/Stable (Rating
Reaffirmed and Withdrawn)
Cash Credit 4 CRISIL B-/Stable (Rating
Reaffirmed and Withdrawn)
Letter of Credit 0.5 CRISIL A4 (Rating Reaffirmed
and Withdrawn)
Letter of Credit 1 CRISIL A4 (Rating Reaffirmed
and Withdrawn)
The ratings reflect PMSPL's presence in a highly fragmented
industry with limited size, working capital-intensive operations
and modest scale of operations amidst intense competition. These
weaknesses are partially offset by the extensive experience of the
promoters.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations amidst intense competition: With
revenue of INR37.97 crore for fiscal 2022, scale remains modest in
the intensely competitive business. The segment is highly
fragmented and has numerous small-scale unorganised players
catering to local demand, which may restrict significant
improvement in scale of operations.
* Subdued financial risk profile: Capital structure is aggressive,
as reflected in total outside liabilities to tangible networth
ratio of -92.35 times as on March 31, 2022, due to extensive
dependence on external borrowings to meet working capital
requirements. Continued operating losses have led to muted debt
protection metrics. Financial risk profile is likely to remain weak
over the medium term.
* Working capital-intensive operations: Gross current assets have
been 400-800 days over the last few fiscals. Receivables and
inventory levels were high at 213 days and 162 days, respectively,
as on March 31, 2022. Delayed payments by customers, primarily
government undertaking companies, and revenue booking towards the
last quarter resulted in stretched receivables.
Strength:
* Extensive industry experience of the promoters: Presence of more
than two decades in the health equipment industry has enabled the
promoters to understand market dynamics and establish strong
relationships with suppliers and customers.
Liquidity: Stretched
Bank limit utilisation is high at around 90.69 percent for the past
twelve months ended December 2022. Current ratio is healthy at 1.63
times on March31, 2022. The promoters are likely to extend support
in the form of equity and unsecured loans to meet its working
capital requirements and repayment obligations. Negative net worth
limits its's financial flexibility, and restrict the financial
cushion available to the company in case of any adverse conditions
or downturn in the business
Outlook: Stable
CRISIL Ratings believes PMSPL will continue to benefit from its
promoters' extensive experience
Rating Sensitivity factors
Upward factors
* Steady improvement in scale of operations and sustenance of
operating margin leading to higher cash accrual of INR0.5 crores
* Improvement in working capital management
Downward factors
* Decline in revenue or profitability leading to lower cash
accruals
* Further stretch in working capital management leading to
weakening of the financial risk profile and liquidity
PMSPL was established in 2003 in Bengaluru (Karnataka) by Mr V
KrishnaPrasad, Mr Kesava and Mr Sunil Monga. The company designs,
manufactures, integrates and installs products related to digital
radiology equipment. It also manufactures other related accessories
and provides end-to-end solutions in the healthcare industry
through the integrated delivery of medical devices, communication
equipment, computers, servers, software supply, and installation
and maintenance of the same on a turnkey basis. Products are sold
under the ProRad brand.
R. S. NAYAK: CRISIL Assigns B+ Rating to INR13cr Cash Loan
----------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable/CRISIL A4'
ratings to the bank facilities of R. S. Nayak And Co. (RSN).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 10 CRISIL A4 (Assigned)
Cash Credit 13 CRISIL B+/Stable (Assigned)
Proposed Long Term
Bank Loan Facility 3 CRISIL B+/Stable (Assigned)
The rating reflects RSN's susceptibility to tender-based operations
and working capital intensive operations. These weaknesses are
partially offset by its extensive industry experience of the
promoters and moderate scale of operation
Key Rating Drivers & Detailed Description
Weaknesses:
* Susceptibility to tender-based operations: Revenue and
profitability entirely depend on the ability to win tenders. Also,
entities in this segment face intense competition, thus requiring
bidding aggressively to get contracts, which restricts the
operating margin to a moderate level. Also, given the cyclicality
inherent in the construction industry, the ability to maintain
profitability margin through operating efficiency becomes
critical.
* Working capital intensive operations: Gross current assets were
at 255 days in the fiscals ended March 31, 2023. Its intensive
working capital management is reflected based on the large working
capital requirements arise from its high debtor levels. It is
required to extend long credit period. GCA days are expected to be
212 to 220 days in the upcoming years from fiscal 2024 to fiscal
2026.
Strengths:
* Extensive industry experience of the promoters: The promoters
have an experience of over two decades in Civil Construction
industry. This has given them an understanding of the dynamics of
the market and enabled them to establish relationships with
suppliers and customers.
* Moderate scale of operation: The scale of operations is moderate
with revenue reported of INR53.94 crore in the end of the fiscal
2023. Revenue is expected to be ramp up with INR80-100 crore in the
upcoming fiscal from 2024 to 2026. However, management has procured
an order of more than INR100 crore which is expected to be
completed in fiscal 2024 and also expecting to get additional order
of INR264 crore for government project from Karwar to Mangalore
location in the upcoming fiscal, which provides visibility in
revenue growth over the term.
Liquidity: Stretched
High Bank limit utilization of 99% in the last 12 month ended in
March 2023. Cash accruals are expected to be over INR2 crores which
are sufficient against term debt obligation of INR1.23 crores over
the medium term. In addition, USL will be infuse based on need
basis, which will be act as cushion to the liquidity of the
company.
Current ratio is moderate at 1.12 times on March 31, 2023
Outlook: Stable
CRISIL Ratings believe RSN will continue to benefit from the
extensive experience of its promoter, and established relationships
with clients.
Rating Sensitivity Factors
Upward factor
* Sustained improvement in revenue more than 20% with profit
margins at 10% leading to higher cash accrual of over INR3 crore
* Improvement in working capital cycle
* Improvement in financial risk profile
Downward factor
* Decline in revenue less than 20% with profit margin less than 7%
leading to lower cash accrual
* Further deterioration in working capital cycle
RSN was established in 2016, it is located in Karnataka. RSN is
owned & managed by Mr. Ramesh Nayak and his family members. RSN is
engaged in civil construction works, such as construction of roads,
bridges and allied works from Karwar to Mangalore area.
S.K. SOLVEX: CRISIL Reaffirms B+ Debt Rating on INR19.6cr Loan
--------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable/CRISIL A4'
ratings to the bank facilities of S.K. Solvex Private Limited
(SKSPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 19.6 CRISIL B+/Stable (Reaffirmed)
Overdraft Facility 5 CRISIL B+/Stable (Reaffirmed)
Proposed Fund-
Based Bank Limits 1.76 CRISIL A4 (Reaffirmed)
Term Loan 8.64 CRISIL B+/Stable (Reaffirmed)
The ratings reflect the company's modest scale of operations,
subdued profitability in an intensely competitive industry, average
financial risk profile and susceptibility to volatility in raw
material prices. These weaknesses are partially offset by the
extensive experience of the promoters in the edible oil industry.
Analytical Approach
Unsecured loan estimated to be at INR7.55 crore as on March 31,
2023, are from promoters and has been treated as 75% equity and 25%
debt.
Key Rating Drivers & Detailed Description
Weaknesses:
* Average financial risk profile: Networth is estimated to be
moderate at INR14.23 crore, however the gearing and total outside
liabilities to tangible networth ratio were high at 2.48 times and
3.14 times, respectively, as on March 31, 2023. Interest coverage
and net cash accrual to total debt ratios are estimated to be
subdued at 1.30 times and 0.04 time, respectively, in fiscal 2023
from 2.03 times and 0.03 times in fiscal year 2022, however these
are expected to improve with repayment of debt over the medium
term.
* Low profitability: Intense competition, limited value addition
and susceptibility to volatility in raw material prices constrains
the operating margin, which is expected at 1-2% over the medium
term.
Strengths:
* Extensive experience of the promoters: The promoters' experience
of three decades in the edible oil industry, strong understanding
of local market dynamics and healthy relationships with customers
and suppliers will continue to support the business.
* Moderate scale of operations: although revenue decline to
INR298.89 crore in fiscal 2023 and INR396.99 crore in fiscal 2022,
this decline in fiscal year 2023, was on account of standardization
in commodity prices coupled with lower volumetric sales in the
fiscal. However, revenue of the company remained comfortable but
will remain a key monitorable factor over the medium term due to
volatility in prices of the products produced by the company.
Liquidity: Stretched
Bank limit utilisation remained moderate at around 90.58 percent
for the past twelve months ended March 2023. However, due to need
of the business the bank limit utilization remains high during few
months, and thus the utilization in the same will remain a key
monatorible factor over the medium term. Cash accruals are expected
to be over INR1.77 crore which are sufficient against term debt
obligation of INR1.26- 1.70 crore over the medium term. In
addition, it will be act as cushion to the liquidity of the
company.
Current ratio is estimated to be moderate at 1.13 times on March
31, 2023. The promoters are likely to extend support in the form of
equity and unsecured loans to meet its working capital requirements
and repayment obligations. Moderate cash and bank balance estimated
to be around INR5.72 crore as on March 31, 2023.
Outlook: Stable
SKSPL will continue to benefit from the extensive experience of the
promoters.
Rating Sensitivity factors
Upward factors
* Sustained improvement in revenue over INR350 crore, and operating
margin over 1.5% leading to cash accruals over INR2 crore in the
medium term
* Improvement in capital expenditure with gearing and TOL/TNW below
2times and 2.2 times respectively.
* Improvement in bank limit utilisation below 85% on a sustained
basis.
Downward factors
* Decline in operating margins below 1% and/or decline in revenue
below INR250 crore leading to cash accruals below INR1 crore
* Further decline in capital structure denoted by gearing and
TOL/TNW over 3 times
Incorporated in 2001, SKSPL operates a mustard oil extraction unit.
The company is promoted by Mr Suresh Jain and his family members.
Its unit in Jaipur, Rajasthan, has seed crushing capacity of 150
tonne per day.
SANMATI EDIBLE: CRISIL Reaffirms B Rating on INR8cr Cash Loan
-------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B/Stable/CRISIL A4'
ratings on the bank facilities of Sanmati Edible Oils Private
Limited (SEOPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8 CRISIL B/Stable (Reaffirmed)
Overdraft Facility 3 CRISIL B/Stable (Reaffirmed)
Proposed Fund-
Based Bank Limits 0.44 CRISIL A4 (Reaffirmed)
Term Loan 4.12 CRISIL B/Stable (Reaffirmed)
The ratings reflect the company's low profitability and
susceptibility to volatility in raw material prices and leveraged
capital structure. These weaknesses are partially offset by the
extensive industry experience of the promoters and moderate scale
of operations
Analytical Approach
The unsecured loans estimated at INR7.43 crore as on 31st March
2023, are from promoters and are expected to remain in business and
have been treated as 75% equity and 25% debt.
Key Rating Drivers & Detailed Description
Weaknesses:
* Low profitability and susceptibility to volatility in raw
material prices: Intense competition, limited value addition, and
susceptibility to volatility in raw material prices constrains the
operating margin, which is likely to remain at 0.8-1.0% over the
medium term.
* Leveraged capital structure: Moderate networth of INR9.71 crore
lead to modest gearing and total outside liabilities to tangible
networth ratio estimated to be at 1.74 times and 2.06 times,
respectively, as on March 31, 2023. Interest coverage and net cash
accrual to total debt ratios estimated to be average at 1.12 times
and 0.02 time, respectively, for fiscal 2023. The metrics are
expected to gradually improve over the medium term.
Strengths:
* Extensive experience of the promoters: The three-decade-long
experience of the promoters, their strong understanding of local
market dynamics, and healthy relationships with customers and
suppliers should continue to support the business.
* Moderate scale of operations: Moderate scale of operations
(revenue estimated at INR278.33 crore in fiscal 2023 against
INR252.07 crore in the previous fiscal) shows improvement in
business risk profile. Intense competition due to the presence of
both organised and unorganised players in the domestic edible oil
refining industry limits the scale of operations however the
company has been able to increase volumetric sales in fiscal year
2023 owing to better brand recognition among the customers.
Liquidity: Stretched
Bank limit utilisation is moderate at around 87.69 percent for the
past twelve months ended April 2023. Cash accruals are expected to
be over INR0.68 crore in fiscal year 2024 which are expected to be
insufficient against term debt obligation of INR0.83 crore, however
with higher scale of operations and sustenance of operating
margins, cash accruals are expected to improve over the medium
term. In addition, the promoters have supported the company in the
form of unsecured loans as and when required.
Current ratio are estimated to be at 1.92 times on March 31, 2023.
Moderate cash and bank balance of around INR2.35 crore as on March
31, 2023.
Outlook: Stable
SEOPL will continue to benefit from the extensive experience of its
promoters.
Rating Sensitivity factors
Upward factors
* Sustained improvement in revenue over INR300 crore and operating
margin of over 1% leading to cash accrual over INR1 crore
* Improvement in capital structure of the company
Downward factors
* Decline in revenue by 20% and in profitability leading to lower
net cash accrual
* Further capital withdrawal resulting in deterioration in the
financial risk profile
SEOPL was incorporated as a proprietorship firm, Sanmati Edible
Oils, in 1992 to set up a mustard oil extraction unit and was
reconstituted as a private limited company with the present name in
1999. It is promoted by Mr Suresh Jain and his family members. Its
unit in Jaipur has seed crushing capacity of 75 tonne per day
(TPD). SEOPL also trades in edible oil.
SHREE AHUJA: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Shree Ahuja Properties and Realtors Private Limited
Flat No. 111, 11th Floor, Soona Villa,
Perry Cross Road, Bandra (West)
Mumbai, Mumbai City MH 400050 India
Insolvency Commencement Date: May 19, 2023
Estimated date of closure of
insolvency resolution process: November 14, 2023
Court: National Company Law Tribunal, Mumbai Bench
Insolvency
Professional: Devang P Sampat
Bungalow No. 4, Shiv Pooja,
Plot 100, Sector 29, Vashi,
Navi Mumbai 400703, india
E-mail: dpsampat@sampatassociates.in
#615, Shivai Plaza, Plot 79/A
Marol Coop. Industrial Estate,
Off Andheri Kurla Road,
Marol, Andheri (East),
Mumbai - 400059 India
Email: ip.saprpl@gmail.com
Representative of
Creditors in Class: Mr. Jitender Kumar Jain
Mr. Bharat Nemichand Kuvadia
Mr. Uday V. Shah
Last date for
submission of claims: June 2, 2023
SIDHI VINAYAK: ICRA Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
ICRA has retained the long-term ratings of Sidhi Vinayak Foundation
in the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 10.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
SVF entered into an agreement with Millennium Education Management
Private Limited for establishing a school campus named The
Millennium School in Palwal. The school commenced operations from
April 2017 onwards with classes from KG to VII and a
studentstrength of around 63. In FY2020, it is expected to operate
with classesfrom KG to IX with strength of around 410 students
against a total capacity of 480.
SRINIVASAN CHARITABLE: ICRA Keeps D Rating in Not Cooperating
-------------------------------------------------------------
ICRA has retained the long-term ratings for the bank facilities of
Srinivasan Charitable and Educational Trust in the 'Issuer Not
Cooperating' category. The ratings are denoted as "[ICRA]D; ISSUER
NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 175.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
DS Group was established in 1994 by Mr. Srinivasan, with an
objective to run charitable institutions, educational institutions
and hospitals. DS group of trusts (including a private limited
company) operate engineering colleges, medical college, hospital,
polytechnic college and hotel in which location. The group runs
three trusts and a private limited company which encompasses 23
colleges (6 – Engineering, 1 – Agricultural, 2 – Pharmacy, 3
– Arts & Science, 2 – Polytechnic, 3 – Nursing, 4 –
Educational, 2 - Medical), 2 hospitals, 3 schools and 1 hotel. The
institutes are present in 3 locations in Tamil Nadu (Perambalur,
Chennai & Trichy).
SRINIVASAN HEALTH: ICRA Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------------
ICRA has retained the long-term ratings for the bank facilities of
Srinivasan Health And Educational Trust in the 'Issuer Not
Cooperating' category. The ratings are denoted as "[ICRA]D; ISSUER
NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 181.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
DS Group was established in 1994 by Mr. Srinivasan, with an
objective to run charitable institutions, educational institutions
and hospitals. DS group of trusts (including a private limited
company) operate engineering colleges, medical college, hospital,
polytechnic college and hotel in which location. The group runs
three trusts and a private limited company which encompasses 23
colleges (6 – Engineering, 1 – Agricultural, 2 – Pharmacy, 3
– Arts & Science, 2 – Polytechnic, 3 – Nursing, 4 –
Educational, 2 - Medical), 2 hospitals, 3 schools and 1 hotel. The
institutes are present in 3 locations in Tamil Nadu (Perambalur,
Chennai & Trichy).
STARWOOD VENEERS: CRISIL Reaffirms B Rating on INR9cr LOC
---------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B/Stable/CRISIL A4'
ratings on the bank facilities of Starwood Veneers Private Limited
(SVPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Inland/Import
Letter of Credit 9 CRISIL A4 (Reaffirmed)
Long Term Loan 1.5 CRISIL B/Stable (Reaffirmed)
Overdraft Facility 7.25 CRISIL B/Stable (Reaffirmed)
Proposed Working
Capital Facility 1.07 CRISIL B/Stable (Reaffirmed)
Proposed Working
Capital Facility 0.15 CRISIL B/Stable (Reaffirmed)
The ratings continue to reflect modest scale of operations, weak
financial risk profile and working capital-intensive operations.
These weaknesses are partially offset by the extensive experience
of the promoters in the plywood industry.
Analytical approach:
Unsecured loans of INR5.7 crore as on March 31, 2023, has been
treated as neither debt nor equity as these are expected to remain
in the business over the medium term.
Key rating drivers and detailed description
Weaknesses:
* Modest scale of operations: The company has witnessed stagnant
growth in revenue over the past 3 fiscals through Fy23 as reflected
in modest revenue of ~Rs 25 crores in fiscal 2023. Intense
competition from established and local players also constrains the
scale of the company. Going forward, significant improvement in
operating income along with steady operating profitability will
continue to remain key monitorable.
* Weak financial risk profile: Financial risk of company continues
to remain weak as witnessed by expected networth and gearing in
range of INR2-2.1 crores and in range of 4-5.5 times as on March
31, 2203, which demonstrates limited headroom to take additional
debt to meet up with business requirements. Debt protection metric
has been average with interest cover and NCAAD expected to be in
range of 1.3-1.4 times and in range of 0.04-0.05 times respectively
in FY23. With no major plans to take any additional debt,
sustenance of operating margins and accretion of reserves to
business, the financial risk profile is expected to improve,
however shall remain a key monitorable.
* Working capital-intensive operations: The operations of company
are working capital intensive as witnessed in high Gross Current
Asset days (GCA) days in range of 230-280 days for last 3 years
through FY23, GCA days are expected to be in range of INR230-240
days in FY23 driven by debtor days of 127 days and inventory of 74
days resulting in high bank limit utilisation of ~94% for last 8
months through April 2023. Efficient management of working capital
cycle thereby reducing reliance on bank lines would therefore
remain a key monitorable.
Strength:
* Extensive experience of promoters: The promoters have been in the
plywood industry since past three decades that has enabled them to
build a deep understanding of the dynamics of the market and the
industry. This has resulted in well-established network of
customers and suppliers which has helped the company navigate
business cycles over the years. CRISIL Ratings believes that the
extensive experience of promoters and the established network of
buyers and sellers will continue to support the business risk
profile over the medium term.
Liquidity: Poor
The liquidity profile of the company has been poor as witnessed by
bank utilisation of ~94% for last 8 months through April 2023 with
instances of almost full utilisation witnessed in few months
through April 2023. Liquidity stretch has also been witnessed
through weak net cash accruals which are expected to be in range of
INR0.4-0.5 crores and would not be sufficient to meet up annual
repayment obligations ranging between INR0.6-0.9 crores over medium
term. Cash and bank balances are also expected to be modest and in
range of INR7-8 lacs as on March 31, 2023.
Outlook: Stable
The company will continue to benefit from the extensive experience
of its promoters and association with the Santosh Timber group.
Rating sensitivity factors
Upward factors:
* Steady growth in revenue and stable profitability leading to net
cash accruals of or above INR0.8-1 crore.
* Efficient working capital cycle leading to moderation in
utilization of bank lines.
Downward factors:
* Decline in revenue below INR12-15 crore, leading to lower cash
accruals
* Increase in working capital requirement, weakening the liquidity
profile of the company.
Incorporated in 1997 and promoted by Mr Ashish Agarwal and his
family members, SVPL processes teak veneer and timber. It has a
sawing unit in Gandhidham, Gujarat, and a veneer processing
facility (1 lakh square metre per month) in Sampla, Haryana.
SUBHASH SUGAR: CRISIL Assigns B+ Rating to INR130cr Pledge Loan
---------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating to the
bank facilities of Shri Subhash Sugar Private Limited (SSSPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Pledge Loan 130 CRISIL B+/Stable (Assigned)
Term Loan 24 CRISIL B+/Stable (Assigned)
Term Loan 80 CRISIL B+/Stable (Assigned)
Term Loan 2 CRISIL B+/Stable (Assigned)
The ratings reflect below-average financial risk profile marked by
a leveraged capital structure and weak debt protection metrics. The
ratings also factor in the exposure to cyclicality and regulatory
changes associated with the sugar business and large working
capital requirements. These weaknesses are partially offset by
extensive experience of the promoters in sugar industry and the
healthy relationship with cane farmers.
Key Rating Drivers & Detailed Description
Weaknesses:
* Below-average financial risk profile: Financial profile is marked
by estimated gearing of 8.54 and estimated total outside
liabilities to adjusted tangible net worth (TOL/ANW) of 9.85 for
year ending on 31st March 2023 on account of modest net worth of
above INR20 crore. Debt levels remain high due to large working
capital requirements and capex. Ramp up in scale of operation and
better profitability will remain crucial for improvement in
networth and in overall financial risk profile. Company is setting
up a co-gen plant currently and has no other debt funded capex
plan over medium term.
* Exposure to cyclicality and regulatory changes associated with
sugar business: SSSPL has purchased an already running sugar
factory in 2020. The company has scaled up its operations under new
management. Nonetheless, the operations remain exposed to
cyclicality in sugar business. Cane production is dependent on the
monsoons and realisations in alternative crops such as rice and
wheat, soyabean which may prompt farmers to switch to sowing other
crops. The government manages the domestic sugar demand-supply
scenario by restricting imports and exports, and by controlling
prices of sugar cane and sugar. Further operations are not fully
integrated which mitigates the cylicality to some extent.
* Working capital intensive operation: Working capital intensity of
operations is marked by gross current assets (GCAs) of 246 days as
on March 31, 2022 and estimated 194 days as on March 31, 2023
driven by high inventory days of over 6 months at year end.
Operations shall remain working capital intensive due to seasonal
crushing and maintenance of high inventory and same shall be funded
largely with sugar pledged CC limits.
Strengths:
* Extensive industry experience of the current promoters: The
management has experience in operating sugar units. Longstanding
presence of the promoters, their association with the farmer
community and adequate irrigation in the command area should ensure
availability of sugar cane. Relations with customers and suppliers
and will continue to support the business.
* Improving scale of operation: Scale of operations has remained
over INR200 crore in last two fiscals through 2023. Profitability
should improve in medium term, led by higher contribution from
molasses and commercialization of Cogen plant. With
commercialization of co-generation from sugar season 2023-24,
operating margin is also likely to improve in medium term. Sugar
cane crushing was 6.37 Lakh MT in sugar season 2022 and has dipped
to 4.83 Lakh MT in sugar season 2023 due to lower yield.
Nonetheless company expects to crush sugar cane of over 5 Lakh MT
on an average in a season over medium term.
Liquidity: Stretched
Bank limit utilization was low at around 50 percent for the past
twelve months ended March-23. Cash accruals are expected to be
INR9-18 crores which are tightly matched against term debt
obligation of INR10-14 crores over the medium term. Current ratio
is average at just about 1 time. Available sugar pledge limit of
INR130 crore can be used to cover company's funding needs including
debt repayments.
Outlook: Stable
CRISIL Ratings believe SSSPL will continue to benefit from the
extensive experience of its promoter, and established relationships
with farmers.
Rating Sensitivity factors
Upward factors:
* Sustained and significant growth in revenue and steady operating
margin, leading to higher cash accrual
* Better working capital management and improvement in gearing
(below 4 times on a sustained basis) and liquidity
Downward factors:
* Weaker operating performance due to shortage of sugar cane
(crushing less than 4.5 lakh MT) or lower sugar realisations.
* Increase in working capital requirement or any large debt-funded
capital expenditure weakening liquidity and financial risk
profile.
SSSPL was incorporated in 2020. SSSPL's manufactures sugar and has
its plant at Nanded, Maharashtra with installed capacity of 3500
tonnes crushing per day (TCD). Also, sugar mill is setting up 15
MW Cogen. SSSPL is owned and managed by Mr. Sushilkumar Subhashrao
Deshmukh, Mr. Subhash Lalasaheb Deshmukh and Mr. Yashwant
Awadhutrao Deshmukh.
SUNWAY INFRA: ICRA Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------
ICRA has retained the Long-Term ratings of Sunway Infrastructure
Services Limited in the 'Issuer Not Cooperating' category. The
rating is denoted as '[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 8.50 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
SISL was incorporated in July 2012 and is a part of the Cygnus
Group. The company rents out construction equipment to major
construction players such as L&T in the NCR region. The company
currently owns various categories of boom trucks, Pumps and Lifts.
VINAYAK INT'L: ICRA Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has retained the long-term and short-term ratings for the bank
facilities of Vinayak International in the 'Issuer Not Cooperating'
category. The ratings are denoted as "[ICRA]D/[ICRA]D; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 1.76 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Long-term/ 0.05 [ICRA]D/[ICRA]D; ISSUER NOT
Short Term COOPERATING; Rating Continues to
Unallocated remain under 'Issuer Not
Cooperating' Category
Short Term- 5.00 [ICRA]D; ISSUER NOT COOPERATING;
Non Fund Rating continues to remain under
Based-Others 'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Founded in 2007 by Mr. KV Krishna Reddy, KVK granites is primarily
into mining and trading of granite. The firm operates two quarries
based in Karimnagar. In line with its growth aspirations, the firm
had acquired two other mines, one each in Mysore and Chittoor in
FY2014. Only the two Karimnagar mines are operational at present.
The majority of the sales of the firm are
from exports to China while a small portion of it comes from the
domestic market.
=====================
N E W Z E A L A N D
=====================
AAA PRO: Grant Bruce Reynolds Appointed as Liquidator
-----------------------------------------------------
Grant Bruce Reynolds of Reynolds & Associates Limited on June 8,
2023, was appointed as liquidator of AAA Pro Pumps Limited and DM
Builders Limited.
The liquidator may be reached at:
Grant Bruce Reynolds
Reynolds & Associates Limited
PO Box 259059
Botany
Auckland 2163
DESIGN ELECTRONICS: Creditors' Proofs of Debt Due on July 10
------------------------------------------------------------
Creditors of Design Electronics Limited are required to file their
proofs of debt by July 10, 2023, to be included in the company's
dividend distribution.
The High Court at Nelson appointed Adam Botterill and Damien Grant
of Waterstone Insolvency as liquidators on June 8, 2023.
LABOUR 4 YOU: Creditors' Proofs of Debt Due on July 10
------------------------------------------------------
Creditors of Labour 4 You Tauranga Limited are required to file
their proofs of debt by July 10, 2023, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on June 8, 2023.
The company's liquidators are:
Adam Botterill
Damien Grant
Waterstone Insolvency
PO Box 352
Auckland 1140
PASSIVE FIRE: Khov Jones Limited Appointed as Receivers
-------------------------------------------------------
Steven Khov and Kieran Jones of Khov Jones Limited on June 13,
2023, were appointed as receivers of The Passive Fire Company
Limited.
The receivers may be reached at:
Khov Jones Limited
PO Box 302261
North Harbour
Auckland 0751
RUAPEHU ALPINE: Liquidation is Best Option, Administrators Say
--------------------------------------------------------------
Stuff.co.nz reports that creditors of Ruapehu Alpine Lifts (RAL)
have been told they must choose between three options for the
future of the skifields - but handing it back to directors would be
a "worst-case scenario".
Ruapehu Alpine Lifts (RAL) went into voluntary administration last
October owing NZD45 million. The administrators said Covid-19
restrictions and a poor season had meant it could not continue.
A watershed meeting for creditors will be held on June 20 and will
include a vote on the best option for the future of the skifields,
Stuff relays.
According to Stuff, administrators John Fisk and Richard Nacey of
PWC said in their latest report that there were three.
Stuff relates that the first was executing the Deed of Company
Arrangement (DOCA) proposed by the Ruapehu Skifield Stakeholders
Association (RSSA).
This proposes to retain the current company structure and relies on
life-pass holders purchasing new life passes to retain their right
to ski, and crowdfunding to generate capital.
The second was executing a "pre-packaged liquidation," Stuff says.
The terms of this option have been developed by the Crown and
involved the sale of the Whakapapa and Turoa ski fields to two new
entities, Whakapapa Holdings and Pure Turoa (PTL).
Minister of Regional Development Kiri Allan said this option would
include Government support that would mean previous debt owed to
Kanoa and the Department of Conservation would be written off,
including contingency for the removal of redundant infrastructure.
CRHL and ANZ would both agree to a partial release of their
respective security interests over the assets of RAL to allow the
transactions to proceed.
PTL would offer life-pass holders the opportunity to purchase
multi-year season passes for Turoa, for up to five years with a 60%
discount off the full price.
WHL would offer life pass holders the opportunity to renew their
life pass for NZD1850 for the Whakapapa ski field for those passes
originally purchased prior to 2018 or 2019.
If resolutions to execute either the Deed of Company Arrangement or
to execute the "pre-packaged liquidation" do not pass, the
administration will end and control of the company will be returned
to the directors, Stuff relates.
Stuff adds that the administrators said the best outcome for
creditors was option two.
It said returning the company to directors was the worst-case
scenario because the company was "hopelessly insolvent" with
liabilities significantly exceeding the realisable value of assets
and without enough money to pay debts as they fell due.
A loan from the Crown and ANZ of NZD10.5 million was likely to be
fully used by the watershed meeting, and no further funding would
be available, adds Stuff.
About Ruapehu Alpine
Ruapehu Alpine Lifts Limited operates the Whakapapa and Tūroa
skifields in the central North Island.
John Fisk and Richard Nacey, of PwC, were appointed voluntary
administrators of Ruapehu Alpine Lifts Limited (RAL) on Oct. 11,
2022 following a resolution of the Directors of the Company.
Mr. Fisk said: "The Company has had a very difficult last three
years, with the impact of Covid-19 restrictions, paired with poor
weather, meaning that the business has been placed under
significant cash flow pressure. The Directors of RAL have explored
a number of options, including a capital raise and a request for
Crown funding, but have not been able to secure the required level
of capital. As such, the Directors made the decision to appoint
Voluntary Administrators. The Administrators will now continue to
trade the business while we look to determine the most appropriate
way forward to maximize recoveries for creditors."
SMARTLEGAL LIMITED: Creditors' Proofs of Debt Due on July 3
-----------------------------------------------------------
Creditors of Smartlegal Limited are required to file their proofs
of debt by July 3, 2023, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on May 29, 2023.
The company's liquidator is:
Ryan Eathorne
PO Box 9010
Wellington
=====================
P H I L I P P I N E S
=====================
MONDE NISSIN: Wins SEC Approval for Equity Restructuring
--------------------------------------------------------
Bilyonaryo.com reports that Monde Nissin Corporation, led by
bilyonaryo Betty Ang, has received approval from the Securities and
Exchange Commission (SEC) for its equity restructuring plan, which
is aimed at wiping out its deficit of PHP7.15 billion as of
December 31, 2022.
Bilyonaryo.com relates that the restructuring initiative aims to
eliminate the deficit in retained earnings, which was primarily
attributed to a non-operating non-cash impairment of intangible
assets.
Monde Nissin clarified that the equity restructuring would not
involve any change in the par value of its shares or necessitate an
infusion of additional paid-in capital, the report says.
Furthermore, the restructuring will not impact the number of
issued, outstanding, or listed shares of the company. The SEC
granted its approval on June 9, Bilyonaryo.com notes.
Monde Nissin Corporation engages in manufacturing, processing, and
baking, among others, all kinds of goods like candies,
confectionaries, biscuits, cakes and other foods, drugs, and
cosmetics. MONDE has two core businesses namely, the Asia-Pacific
branded food and beverage (F&B) business and the meat alternative
business. The Asia-Pacific branded F&B business is further divided
into the product groups of instant noodles, biscuits, and other
products such as beverages, baked goods and culinary aid. Some of
the brands under this business include "Lucky Me!", "SkyFlakes",
"Fita", and "Mama Sita's". The meat alternative business meanwhile
has the "Quorn" and "Cauldron" brands.
=================
S I N G A P O R E
=================
NBT PAKISTAN: Final Meeting Set for July 17
-------------------------------------------
Members and creditors of NBT Pakistan Holding Pte Ltd will hold
their final meeting on July 17, 2023, at 10:00 a.m., at 531 Upper
Cross Street, #03-15, Hong Lim Complex, in Singapore.
At the meeting, Tan Ching Siew and Tan Jin Jay, the company's
liquidator, will give a report on the company's wind-up proceedings
and property disposal.
QANTAS ASIA: Members' Final Meeting Set for July 14
---------------------------------------------------
Members of Qantas Asia Investment Company (Singapore) Pte. Ltd.
will hold their final general meeting on July 14, 2023, at 12:00
p.m., at 7 Straits View, Marina One, East Tower, Level 12, in
Singapore.
At the meeting, Chan Kheng Tek, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
TRACESAFE ASIA: Court to Hear Wind-Up Petition on June 23
---------------------------------------------------------
A petition to wind up the operations of Tracesafe Asia Pacific Pte
Ltd will be heard before the High Court of Singapore on June 23,
2023, at 10:00 a.m.
Ong Hwee Teng (Wang Huiting) filed the petition against the company
on April 27, 2023.
The Petitioner's solicitors are:
M/s RLC Law Corporation
111 North Bridge Road
#08-30 Peninsula Plaza
Singapore 179098
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2023. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000.
*** End of Transmission ***