/raid1/www/Hosts/bankrupt/TCRAP_Public/230628.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Wednesday, June 28, 2023, Vol. 26, No. 129
Headlines
A U S T R A L I A
ELEVATE CONSTRUCTIONS: First Creditors' Meeting Set for June 30
J. MUSSILLON: Second Creditors' Meeting Set for June 30
KONTRO GROUP: Second Creditors' Meeting Set for July 3
REAL DYNO: First Creditors' Meeting Set for June 30
SEACHANGE GLOBAL: Second Creditors' Meeting Set for June 30
C H I N A
CHINA EVERGRANDE: Finance Firm Not Owner of Evergrande Tower
GUANGZHOU FINELAND: Moody's Cuts CFR to Ca & Sr. Unsec. Debt to C
I N D I A
AADHI CARS: ICRA Keeps B+ Debt Ratings in Not Cooperating
AAI KRUPA: ICRA Keeps D Debt Ratings in Not Cooperating Category
B.V.L. EXPORTS: ICRA Keeps D Debt Ratings in Not Cooperating
BANDLAGUDA JAGIR: ICRA Downgrades Issuer Rating to B+
BEVCON WAYORS: ICRA Keeps D Debt Ratings in Not Cooperating
BHARAT IRON: ICRA Keeps B+ Debt Ratings in Not Cooperating
CAIRN INDIA: $345M Bank Debt Trades at 17% Discount
COASTAL ENERGEN: ICRA Keeps D Debt Ratings in Not Cooperating
GENID SHIPPING: ICRA Keeps B+ Debt Ratings in Not Cooperating
GENUINE CONSTRUCTIONS: Voluntary Liquidation Process Case Summary
GMR KAMALANGA: ICRA Keeps D Debt Ratings in Not Cooperating
GO FIRST: Creditors Panel Approves INR425 Interim Funding
JSB ALUMINIUM: ICRA Keeps B+ Debt Ratings in Not Cooperating
KAKATIYA CONSTRUCTIONS: ICRA Keeps B+ Ratings in Not Cooperating
KARNATAKA HANDLOOM: ICRA Keeps B+ Debt Rating in Not Cooperating
KRISHNA CONSTRUCTION: ICRA Keeps B+ Ratings in Not Cooperating
LEMOSA TILES: ICRA Keeps B+ Debt Ratings in Not Cooperating
LML LIMITED: ICRA Keeps D Debt Rating in Not Cooperating Category
LOHIYA DEVELOPERS: ICRA Keeps B Debt Ratings in Not Cooperating
M.M. BROTHERS: ICRA Keeps B+ Debt Rating in Not Cooperating
MANAPPURAM FINANCE: S&P Affirms 'BB-' ICR, Outlook Stable
MATRIX CERAMIC: ICRA Keeps B+ Debt Ratings in Not Cooperating
MUKTA INDUSTRIES: ICRA Keeps D Debt Ratings in Not Cooperating
MUKTAR AUTOMOBILES: CARE Keeps D Debt Ratings in Not Cooperating
NATIONAL (INDIA): ICRA Keeps D Debt Ratings in Not Cooperating
P.K. MOOKANAMBALAM: ICRA Keeps B+ Debt Rating in Not Cooperating
S.B. CARS: ICRA Keeps B+ Debt Ratings in Not Cooperating Category
SUMA FOODS: ICRA Keeps D Debt Ratings in Not Cooperating Category
UNIFYTWIN INDIA: Voluntary Liquidation Process Case Summary
M A L A Y S I A
RAPID SYNERGY: Says Land Sale Won't Trigger PN17 Status
N E W Z E A L A N D
KANNAK PROPERTY: Creditors' Proofs of Debt Due on July 20
MAJOR BRANDS: Creditors' Proofs of Debt Due on July 28
MIX MART: Court to Hear Wind-Up Petition on July 3
RUAPEHU ALPINE: Govt. to Put Up NZD5MM to Ensure Ruapehu Skiing
SFUND LIMITED: Court to Hear Wind-Up Petition on July 10
VAKA INTERACTIV: Creditors' Proofs of Debt Due on July 21
P A K I S T A N
PAKISTAN: Hikes Rate to Record High in Emergency Meet as IMF Looms
S I N G A P O R E
ATLANTIC ENSENADA: Commences Wind-Up Proceedings
EMERALD LAND: Creditors' Proofs of Debt Due on July 26
HSE HOLDINGS: Creditors' Proofs of Debt Due on July 26
MULTIPLE CAPITAL: Creditors' Proofs of Debt Due on July 27
PACIFIC CHINA: Commences Wind-Up Proceedings
S R I L A N K A
SRI LANKA: China to Continue with Aid 'Within its Capabilities'
SRI LANKA: World Bank to Provide $500 Million Budget Support
T H A I L A N D
STARK CORPORATION: SEC Warns of Prison Time for Stark Fraudsters
X X X X X X X X
[*] Ramesh First Asian and Judge to be Appointed as Pres. of III
- - - - -
=================
A U S T R A L I A
=================
ELEVATE CONSTRUCTIONS: First Creditors' Meeting Set for June 30
---------------------------------------------------------------
A first meeting of the creditors in the proceedings of Elevate
Constructions Pty Limited will be held on June 30, 2023, at 1:00
p.m. at Equinox Building 4, Level 2, 70 Kent Street in Deakin and
via virtual meeting technology.
Frank Lo Pilato of RSM Australia Partners was appointed as
administrator of the company on June 20, 2023.
J. MUSSILLON: Second Creditors' Meeting Set for June 30
-------------------------------------------------------
A second meeting of creditors in the proceedings of J. Mussillon
Pty Ltd has been set for June 30, 2023 at 10:00 a.m. via electronic
facilities.
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 29, 2023 at 4:00 p.m.
Aaron Torline and Michael Slaven of Slaven Torline were appointed
as administrators of the company on April 26, 2023.
KONTRO GROUP: Second Creditors' Meeting Set for July 3
------------------------------------------------------
A second meeting of creditors in the proceedings of Kontro Group
Pty Ltd has been set for July 3, 2023 at 12:00 p.m. via virtual
facilities only.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by July 2, 2023 at 4:00 p.m.
Graeme Robert Beattie of Worrells was appointed as administrator of
the company on May 26, 2023.
REAL DYNO: First Creditors' Meeting Set for June 30
---------------------------------------------------
A first meeting of the creditors in the proceedings of Real Dyno
Performance Pty Ltd will be held on June 30, 2023, at 11:00 a.m.
via virtual meeting at the offices of Mackay Goodwin.
Domenico Alessandro Calabretta and Grahame Ward of Mackay Goodwin
were appointed as administrators of the company on June 20, 2023.
SEACHANGE GLOBAL: Second Creditors' Meeting Set for June 30
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Seachange
Global Investments Pty Limited has been set for June 30, 2023 at
9:30 a.m. via Zoom teleconference facilities.
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 29, 2023 at 5:00 p.m.
Domenico Alessandro Calabretta and Mitchell Ball of Mackay Goodwin
were appointed as administrators of the company on June 30, 2023.
=========
C H I N A
=========
CHINA EVERGRANDE: Finance Firm Not Owner of Evergrande Tower
------------------------------------------------------------
The Standard reports that Yunfeng Financial, backed by Alibaba
founder Jack Ma Yun, has clarified that it and its subsidiary YF
Life Insurance International have "never acquired any property
interest in YF Life Centre," an office tower formerly named China
Evergrande Centre.
In a filing on June 26, it said YF Life, as a major tenant of the
YF Life Centre in Wan Chai, has been renting some floors of the
tower since 2000 and the owner had agreed to rename the building
after negotiations, The Standard relates.
But it did not identify the current owner, the report says.
According to The Standard, recent media reports on the change of
the building's name drew speculation that the firm may have
acquired the tower after receivers took it over from indebted
developer China Evergrande.
China Evergrande Group is an integrated residential property
developer. The Company, through its subsidiaries, operates in
property development, investment, management, finance, internet,
health, culture, and tourism markets.
Evergrande had CNY1.97 trillion (US$311 billion) of liabilities at
the end of June 2021. Once China's biggest developer by sales,
Evergrande fell into distress as cash dried up and the group
overstretched itself on borrowings and ventures into car
manufacturing.
Evergrande hired outside financial advisers Houlihan Lokey and
Admiralty Harbour Capital in September 2021 to engage with
creditors soon after it ran into a liquidity squeeze. It has since
worked with more advisers in the past two months by turning to
China International Capital Corp, BOCI Asia and Zhong Lun Law Firm
on its debt workout plan.
As reported in the Troubled Company Reporter-Asia Pacific in
October 2022, Moody's Investors Service has withdrawn China
Evergrande Group's (Evergrande) corporate family rating and senior
unsecured ratings, the CFRs of Hengda Real Estate Group Company
Limited and Tianji Holding Limited, and Scenery Journey Limited's
backed senior unsecured ratings.
GUANGZHOU FINELAND: Moody's Cuts CFR to Ca & Sr. Unsec. Debt to C
-----------------------------------------------------------------
Moody's Investors Service has downgraded Guangzhou Fineland Real
Estate Development Co., Ltd.'s corporate family rating to Ca from
Caa1 and senior unsecured rating to C from Caa2.
The outlook remains negative.
"The rating downgrades with negative outlook reflect Fineland's
heightened default risk and expected weak recovery prospects for
the company's bondholders," says Alfred Hui, a Moody's Analyst.
RATINGS RATIONALE
Fineland has sizable debt maturities over the next 6-12 months,
including a USD340 million offshore bond due in July 2023 and
RMB918 million onshore bond puttable in December 2023. Moody's
estimates Fineland does not have internal cash sources to address
the upcoming offshore bond maturity.
Moody's notes that Fineland announced on June 14, 2023 that it will
conduct a potential liability management exercise with regards to
the outstanding USD340 million offshore bond [1]. This indicates
the company's weak liquidity and limited ability to service the
offshore bond at maturity.
Moody's expects the recovery of Fineland's offshore bondholders to
be low if the company defaults, given its high debt leverage and
large secured financing.
Although Fineland may raise funds from asset disposals or other
channels, these fundraising activities entail high execution risks
amid weak market sentiment. As of the end of 2022, essentially all
of Fineland's investment properties have been pledged, which
further constrains the company's financial flexibility to raise
additional funding.
Moody's also notes that Fineland's auditor indicated in its audited
financial report of 2022 the existence of material uncertainty in
the company's ability to continue as a going concern. Moody's
expects such an incident to weaken investors' confidence and the
company's access to funding.
Fineland's C senior unsecured rating is one notch lower than the
CFR to reflect structural subordination risk. Most of the company's
consolidated claims are at its operating subsidiaries, which have
priority over its senior unsecured claims at the holding company in
a bankruptcy scenario. Moody's expects the likely recovery rate for
claims at the holding company to be lower.
In terms of environmental, social and governance (ESG)
considerations, Moody's has considered Fineland's weak financial
and liquidity management, as well as its private company status
with weaker information disclosure and governance standards than
its listed peers.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's could downgrade Fineland's CFR if the recovery prospects
for Fineland's creditors weaken further.
An upgrade is unlikely given the negative outlook.
However, positive rating momentum could develop if Fineland repays
its maturing debt obligations and improves its liquidity position
materially.
The principal methodology used in these ratings was Homebuilding
and Property Development published in October 2022.
Founded in 1995, Guangzhou Fineland Real Estate Development Co.,
Ltd. is a property developer based in Guangdong Province that
targets mid to high-end customers. The company adopts Eastern-style
designs in its developments for different customers.
=========
I N D I A
=========
AADHI CARS: ICRA Keeps B+ Debt Ratings in Not Cooperating
---------------------------------------------------------
ICRA has retained the Long-Term and Short-Term rating of Aadhi Cars
Private Limited in the 'Issuer Not Cooperating' category. The
ratings are denoted as "[ICRA]B+ (Stable)/[ICRA]A4; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 1.42 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term/ 3.58 [ICRA]B+ (Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain
under issuer not cooperating
category
Short Term- 20.00 [ICRA]A4 ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to 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.
Aadhi Cars Private Limited (ACPL), incorporated in 2012, operates
as an authorised automobile dealer of Maruti Suzuki India Limited
based out of Coimbatore, Tamil Nadu. ACPL operates eight Maruti
Suzuki showrooms in Coimbatore and Tirunelveli with multiple
touchpoints. ACPL also operates service centres and Maruti driving
schools in these locations.
AAI KRUPA: ICRA Keeps D Debt Ratings in Not Cooperating Category
----------------------------------------------------------------
ICRA has retained the long-term ratings of Aai Krupa Cotton
Industries in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 1.70 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Long-term– 5.00 [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.
Established as a partnership firm in 2013, Aai Krupa Cotton
Industries (AKCI) is engaged in cotton ginning and pressing
operations. The promoters of the firm have moderate experience in
cotton ginning and pressing industry by virtue of their earlier
association with other firms as partners or as key operating
personnel in past. The firm commenced its commercial operations
from November 2013 at its manufacturing unit at Tankara, Dist.
Rajkot with 20 ginning machines and 1 pressing machine. It has an
installed processing capacity of ~37 MT raw cotton daily (assuming
24 hours of operation per day).
B.V.L. EXPORTS: ICRA Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA has retained the Long-Term ratings of B.V.L. Exports Private
Limited in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 125.00 [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.
B.V.L. Exports Private Limited was incorporated in 2000 and is
engaged in the trading of tobacco. The company continued to operate
as a tobacco exporter till 2004 when it transferred its entire
tobacco export business to Indian Tobacco Traders. The company then
ventured into granite mining by buying granite quarry in Ongole
District of Andhra Pradesh. The company mines black galaxy variety
of granite. From December 2014, the company has restarted trading
of tobacco. Mr. Bellam Jayanth Babu is the Managing Director of BVL
and has more than 20 years of experience in tobacco industry.
BANDLAGUDA JAGIR: ICRA Downgrades Issuer Rating to B+
-----------------------------------------------------
ICRA has downgraded the ratings on certain bank facilities of
Bandlaguda Jagir Municipal Corporation, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Issuer Rating - [ICRA]B+(Stable); ISSUER NOT
COOPERATING; Rating downgraded
from [ICRA]BB+ (Stable) and
continues to remain under
'Issuer Not Cooperating'
Category
Rationale
The rating downgrade is attributable to the lack of adequate
information regarding Bandlaguda Jagir Municipal Corporation
performance and in turn, the uncertainty around its credit risk.
ICRA assesses whether the information available about the entity is
commensurate with its rating and reviews the same as per its
"Policy in respect of non-cooperation by a rated entity"available
at www.icra.in. The lenders, investors and other market
participants are thus advised to exercise appropriate caution while
using this rating as the same may not adequately reflect the credit
risk profile of the entity, despite the downgrade.
As part of its process and in accordance with its rating agreement
with Bandlaguda Jagir Municipal Corporation, ICRA has been trying
to seek information from the entity to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite repeated
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of the requisite information and in
line with the aforesaid policy of ICRA, a rating view has been
taken on the entity based on the best available information.
Bandlaguda Jagir Municipal Corporation (BJMC) is an urban local
body (ULB) that has been recently constituted. It was initially
constituted as a municipality by merging five gram panchayats
namely Bandlaguda Jagir, Himayathsagar, Hydershakote, Kismathpur
and Peeramcheruvu in April 2019. Subsequently, its status was
upgraded to a municipal corporation in June 2019. The ULB provides
urban infrastructure services to Bandlaguda Jagir and is governed
by the Telangana Municipalities Act 2019 (Act). The BJMC covers an
area of 37.1 sq. km. and serves a population of 1.52 lakh
(projected as on date). Its main functions include solid waste
management and construction, repair and maintenance of roads and
streetlights. The ULB is divided into 22 municipal wards and is
governed by an elected body (Council) headed by a Mayor, while the
Commissioner acts as the chief executive, overseeing its everyday
functioning.
BEVCON WAYORS: ICRA Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has retained the long-term and short-term ratings of Bevcon
Wayors Private Limited in the 'Issuer Not Cooperating' category.
The rating is denoted as "[ICRA]D/[ICRA]D; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 11.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term– 2.66 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Short-term 75.00 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Rating continues to remain under
Others 'Issuer Not Cooperating'
Category
Long-term/ 8.34 [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.
Bevcon Wayors Private Limited (BWPL) was incorporated in October
31, 1994 and is engaged in manufacturing of Bulk Material Handling
Products as well as providing EPC/turnkey solutions of Balance of
Plant (BOP) requirements of customers across diverse sectors such
as power, steel, cement, mining, sugar, ports, paper, pharma, FMCG,
etc. The company has its manufacturing unit in Hyderabad. The
company is currently headed by Mr Y. Srinivas Reddy, who is the
Managing Director of the company and has nearly 25 years of
experience in material handling products line of business.
BHARAT IRON: ICRA Keeps B+ Debt Ratings in Not Cooperating
----------------------------------------------------------
ICRA has retained the long-term and short-term ratings of Bharat
Iron Syndicate in the 'Issuer Not Cooperating' category. The rating
is denoted as "[ICRA]B+(Stable)/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 9.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 2.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Short Term- 5.00 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
Others to 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.
Established in 1975 by Mr. Nanakchand Mediratta, BIS is engaged in
trading of mild steel products. Currently the firm is managed by
Mr. Vinay Mediratta (Son of Mr. Nanakchand Mediratta). Products
supplied by BIS include CR and HR sheets and coils, TMT bars, HR
plats, MS flats, MS angles and, MS channels, etc. BIS is the
authorised distributor of JSW Steels Limited (JSW) for western
region of Maharashtra for CR & HR Sheets and coils, TMT bars and
galvanized products. The firm supplies to over 100 customers
currently who are vendors of automobile OEMs like Tata Motors
Limited, Bajaj Auto Limited and Mahindra & Mahindra Limited. The
firm also caters to needs of other industries like construction
equipments, construction, general engineering, power etc.
CAIRN INDIA: $345M Bank Debt Trades at 17% Discount
---------------------------------------------------
Participations in a syndicated loan under which Cairn India
Holdings Ltd is a borrower were trading in the secondary market
around 83.1 cents-on-the-dollar during the week ended Friday, June
23, 2023, according to Bloomberg's Evaluated Pricing service data.
The $345million facility is a Term loan that is scheduled to mature
on March 8, 2028. The amount is fully drawn and outstanding.
Cairn India Holdings Limited owns and operates energy products. The
Company produces and explores oil and gas and its by products.
Cairn India Holdings serves customers in India.
COASTAL ENERGEN: ICRA Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has retained the long-term and short-term ratings of Coastal
Energen Private Limited in the 'Issuer Not Cooperating' category.
The rating is denoted as "[ICRA]D/[ICRA]D; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 1150.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term– 6113.79 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Long-term 465.20 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Continues to remain under the
Others 'Issuer Not Cooperating'
Category
Unallocated 25.21 [ICRA]D; ISSUER NOT COOPERATING;
Rating continues to remain under
'Issuer Not Cooperating'
Category
Short-term 40.00 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Continues to remain under the
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.
CEPL is a special purpose vehicle (SPV) promoted by Mr. Ahmed
Buhari (promoter of the Coal & Oil Group) for the development of a
1200-MW imported coal-based thermal power plant at Tuticorin in
Tamil Nadu. The Coal & Oil Group is a Dubai-based energy
conglomerate that operates as an integrated fuel solution provider
with interests in coal trading, technical consultancy for fuel
sourcing, handling, shipping, logistics etc. The flagship company
of the Group is Coal & Oil Company DMCC (C&O). The total project
cost for CEPL of INR7,870 crore was funded through a debt to equity
ratio of 80:20. Its unit-1 contributing to 600-MW power commenced
operations from December 2014 and unit-2 from January 2016.
GENID SHIPPING: ICRA Keeps B+ Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has retained the Long-Term ratings of Genid Shipping And
Logistics Private Limited in the 'Issuer Not Cooperating' category.
The rating is denoted as "[ICRA]B+ (Stable); ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 2.00 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Long Term- 3.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to 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.
Genid Shipping and Logistics Private Limited, incorporated in
October 2019, is an international freight forwarder providing
end-to-end services such as ocean freight services, customs
clearance, warehousing, chartering, stevedoring and supply chain
solutions. The company has 5 branches spread across India with
22trailers and has partnered with over 50 liners. It derived 60% of
its revenues from freight forwarding segment and remaining 40% of
its revenues from chartering and stevedoring in FY2021. The company
is promoted by Mr. T Johnson and Ms. Sneha Britto.
GENUINE CONSTRUCTIONS: Voluntary Liquidation Process Case Summary
-----------------------------------------------------------------
Debtor: Genuine Constructions Private Limited
A-258, Defense Colony New Delhi 110024
Liquidation Commencement Date: June 9, 2023
Court: National Company Law Tribunal, New Delhi Bench
Liquidator: Gagan Gulati
A-179, First Floor, Sudershan Park,
New Delhi 110015
Email: advocategulati@gmail.com
Mob: +91 9717999399
Last date for
submission of claims: July 8, 2023
GMR KAMALANGA: ICRA Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has retained the long-term ratings of GMR Kamalanga Energy
Limited in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 3405.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Long-term 450.00 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Rating continues to remain under
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.
GMR Kamalanga Energy Limited (GKEL) is an SPV promoted by the GMR
Group for development of 1050 MW (3 X 350 MW) domestic coal based
thermal power plant at Kamalanga in the state of Odisha. GMR Group
holds ~86% stake in GKEL through GMR Energy Limited, while balance
is held by India Infrastructure fund and IDFC Limited. The plant
has been commissioned in March 2014 as against original
commissioning schedule of March 2012. The final project cost is
estimated at Rs 6,519 crore. The company has three Power Purchase
Agreement (PPA) with Grid Corporation of Odisha (GRIDCO; 263 MW),
Haryana Utilities (300 MW net) and Bihar state utility (260 MW
net).
GO FIRST: Creditors Panel Approves INR425 Interim Funding
---------------------------------------------------------
The Economic Times reports that the committee of creditors (CoC)
for Go First Airlines has approved an in-principle interim funding
of INR425 crore so that the grounded carrier, the first in the
country to voluntarily seek bankruptcy protection, manages to fly
again soon.
ET relates that the funding is, however, subject to the carrier
being given a no-objection certificate (NOC) by the Directorate
General of Civil Aviation (DGCA). Permissions linked to the funding
are the DGCA's green light to allow the airline to fly and a
security clearance.
Lenders will also need to take approvals from their respective
boards to disburse this money that is a new funding and isn't part
of the unutilised credit lines with banks as those have been
extinguished after the company was admitted to insolvency in the
first week of June, according to ET.
About Go First
Go First, formerly known as GoAir, was an Indian ultra-low-cost
airline based in Mumbai, Maharashtra. Go First was incorporated in
April 2004 as GoAir and commenced flight operations in November the
following year. Its inaugural flight was from Mumbai to Ahmedabad.
The airline is owned by the Wadia Group.
As reported the Troubled Company Reporter-Asia Pacific on May 3,
2023, Go First filed an application for voluntary insolvency
resolution proceedings before National Company Law Tribunal (NCLT)
on May 2.
The company said the filing with the NCLT comes after Pratt &
Whitney, the exclusive engine supplier for the airline's Airbus
A320neo aircraft fleet, refused to comply with an order to release
engines to the airline that would have allowed it return to full
operations.
Go First owes INR6,521 crore to its financial creditors, Bank of
Baroda, IDBI Bank, and Deutsche Bank. The airline has a total
liability of about INR11,463 crore to banks, other creditors,
vendors, and others.
On May 10, the NCLT accepted Go First's voluntary insolvency
petition. The NCLT bench appointed Abhilash Lal as the interim
resolution professional to look after the affairs of Go First and
also suspended its board as part of the insolvency resolution
process.
JSB ALUMINIUM: ICRA Keeps B+ Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA has retained the Long-Term rating of JSB Aluminium Private
Limited in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]B+ (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 30.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 4.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to 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.
JSB Aluminum Private Limited (JAPL) was initially incorporated as
M/S Shree Balaji Aluminum Casting in Faridabad in February 2000 by
Mr. Radhey Shyam Aggarwal and Mr. Ashok Kumar Aggarwal. Prior to
that, the two brothers were actively involved in trading of ferrous
and non-ferrous scrap. During the 2000s, M/S Shree Balaji Aluminum
Casting was renamed M/S Shree Balaji Alloy and started its
operation from Kathua in Jammu & Kashmir.
KAKATIYA CONSTRUCTIONS: ICRA Keeps B+ Ratings in Not Cooperating
----------------------------------------------------------------
ICRA has retained the Long-Term and Short-Term rating of Kakatiya
Constructions in the 'Issuer Not Cooperating' category. The
ratings are denoted as "[ICRA]B+ (Stable)/[ICRA]A4; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 3.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term/ 4.00 [ICRA]B+ (Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain
under issuer not cooperating
category
Short Term- 3.00 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
Others to 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.
Kakatiya Constructions (KC) was started in 1999. The firm primarily
operates in Telangana. It is a special class civil contractor in
Andhra Pradesh and Telangana for executing building construction.
The firm has been executing building construction contracts for
various Government departments such as Telangana State Education
and Welfare Infrastructure Development Corporation (TSEWIDC),
Tribal Welfare Department and Telangana State Medical Services and
Infrastructure Development Corporation (TSMSIDC), etc.
KARNATAKA HANDLOOM: ICRA Keeps B+ Debt Rating in Not Cooperating
----------------------------------------------------------------
ICRA has retained the long-term rating for the bank facilities of
The Karnataka Handloom Development Corporation Limited in the
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 27.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to 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.
The Karnataka Handloom Development Corporation Ltd (KHDC) was
incorporated in 1975 under the 20-Point Programme of the GoI and
the GoK to promote the handloom industry and thus ensure the
economic and social welfare of the weavers in Karnataka. The KHDC
provides raw materials to weavers and procures fabric from them
against the payment of conversion charges. The company also has a
retail network of more than 50 showrooms across the state through
which its products are sold under the brand Priyadarshini
Handlooms. The registered office is at Hubli while its corporate
office is at Bangalore.
KRISHNA CONSTRUCTION: ICRA Keeps B+ Ratings in Not Cooperating
--------------------------------------------------------------
ICRA has retained the long-term and short-term ratings for the bank
facilities of Krishna Construction Co. in the 'Issuer Not
Cooperating' category. The ratings are denoted as "[ICRA]B+
(Stable)/ [ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 3.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term/ 0.10 [ICRA]B+ (Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain
under issuer not cooperating
category
Short Term- 1.50 [ICRA]B+(Stable)/[ICRA]A4;
Non-Fund Based ISSUER NOT COOPERATING;
Others Rating Continues to 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.
Krishna Construction Company (KCC) was established in 1983 as a
proprietorship firm by Mr. Sumabhai Patel and Mr. Purshotam Patel.
Subsequently in the year 1988, it was taken over by the current
partners Mr. Bharat Patel, Mr. Jeetendra Patel and Mrs. Shardaben
Patel. KCC is engaged in civil & construction engineering and
contracting services. KCC has the following registrations with the
Government of Gujarat: Registration as approved contractor in 'AA'
class (Roads & Buildings Department, Government of Gujarat) - This
allows KCC to bid for projects of any size issued by the concerned
authority. The firm is based out of Mehsana, Gujarat and has, since
inception, executed projects for semi-government agencies/local
authorities involving civil construction in the water supply
segment in Gujarat. KCC is primarily engaged in performing civil
construction work for the water supply development projects in
Gujarat floated by Gujarat Water Supply & Sewerage Board (GWSSB).
The firm mostly bids for the contracts on its own wherever it is
able to meet the qualifying criteria and it also enters into joint
venture.
LEMOSA TILES: ICRA Keeps B+ Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has retained the long-term rating for the bank facilities of
Lemosa Tiles Llp in the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 3.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 6.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to 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.
Lemosa Tiles LLP was established in April 2016, as a limited
liability partnership with an objective to engage in the
manufacturing of glazed ceramic wall tiles in three sizes viz. 10"
X 13", 12" X 18" and 12" X 24". The manufacturing facility of the
firm is located at Morbi with an installed capacity to manufacture
30,000 Metric Tonnes (7,000 boxes per day) of glazed ceramic wall
tiles per annum. The unit became fully operational from January
2017.
LML LIMITED: ICRA Keeps D Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
ICRA has retained the Long-Term ratings of LML Limited in the
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Preference 125.00 [ICRA]D; ISSUER NOT COOPERATING;
Shares Capital Rating continues to 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.
LML Limited (LML) was promoted in 1972 as Lohia Machines Limited by
the Singhania family to manufacture machinery for the synthetic
fibres industry. Later, it diversified into production of 100 cc
scooters, in technical collaboration with Piaggio Vespa, of Italy
in 1984. Piaggio later took up 23.5% equity stake, which it later
divested in favour of the Indian promoters pursuant to the
settlement reached following certain legal disputes, which were
settled out of court. Subsequently, the company entered technical
collaboration with Daelim Motor Company, South Korea (DMC) to set
up a small capacity for manufacturing of four-stroke motorcycles.
Following a strike by the workers, LML had declared a lock-out at
its factory in Kanpur with effect from March 7, 2006. The lock-out
remained in place for over a year and the same was lifted only in
April 2007 pursuant to a tripartite agreement reached between the
company, the Trade Union, and the Labour Department of Government
of Uttar Pradesh. The company filed a petition on May 22, 2017
under 2 section 10 of the Insolvency & Bankruptcy Code, 2016 with
National Company Law Tribunal (NCLT), Allahabad bench. The company
is under Corporate Insolvency Resolution Process and the net worth
of the company has been fully eroded and its current liabilities
exceed its current assets as on December 31, 2017.
LOHIYA DEVELOPERS: ICRA Keeps B Debt Ratings in Not Cooperating
---------------------------------------------------------------
ICRA has retained the long-term ratings of Lohiya Developers in the
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 5.00 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 0.50 [ICRA]B (Stable) ISSUER NOT
Non Fund Based COOPERATING; Rating continues
Others to 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.
Lohiya Developers was incorporated in 2008 by Mr Munendra Singh
Lohiya. The company is engaged in the field of civil construction
in government, public and private sector. The company has its head
office in Meerut (Uttar Pradesh). Over the past few years the
company has been executing work for PWD and other state government
departments in the state of UP, mostly in the city of Meerut. In
FY2016, Mr Manuj Kumar, son of Mr Munendra Lohiya became partner of
the firm with 40% stake.
M.M. BROTHERS: ICRA Keeps B+ Debt Rating in Not Cooperating
-----------------------------------------------------------
ICRA has retained the long-term and short-term ratings of M.M.
Brothers in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]B+ (Stable)/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 5.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Short Term- 35.00 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
Others to 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.
M.M. Brothers is a partnership firm incorporated in 2010 and has
been a turnkey contractor for the electrical works of the Rajasthan
Government. The partners of the firm have been involved in this
business for the past 30 years; before partnership firm, the
constitution of the entity was a proprietorship concern. The
partners in the firm include Mr. Dhoot Sogani, Mr. Sunil Sogani and
Mrs. Sangeeta Sogani; however, the business is mainly being looked
after by Mr. Sunil Sogani. The firm is registered as an E1
contractor in the various government departments in the Jaipur
region. It has experienced and qualified engineers and supervisory
staff and has undertaken a number of projects in the Rajasthan
region. MMB has undertaken contracts for electrical works, such as
survey, installation, testing, and commissioning of 11 kilovolt
(KV) to 33 KV electrical lines, transmission towers, and meters.
The firm has been engaged in the external electrification works for
Government Organizations like Madhya Pradesh Poorv Kshetra Vidyut
Vitran Company, Jaipur Vidyut Vitran Nigam Limited, Rajasthan State
Road Development Construction Corporation, Rajasthan Housing Board
and Urban Improvement Trust. The scope of the work involves
shifting of overhead lines, laying of underground cables, external
electrification of new colonies, electric poles installation,
erection of lines, installing transformers between lines etc.
MANAPPURAM FINANCE: S&P Affirms 'BB-' ICR, Outlook Stable
---------------------------------------------------------
S&P Global Ratings upgraded Bajaj Finance Ltd., Hero FinCorp Ltd.,
Shriram Finance Ltd., and Union Bank of India. This reflects S&P's
view that domestic financial institutions in India will continue to
improve their asset quality, benefiting from good economic
prospects and structural improvements in the operating conditions.
S&P affirmed its ratings on the other financial institutions it
rates in India. S&P also raised the issue rating on debt of some of
these institutions.
Upgraded
TO FROM
Bajaj Finance Ltd. BBB-/Stable/A-3 BB+/Positive/B
Hero FinCorp Ltd. BB+/Stable/B BB/Stable/B
Shriram Finance Ltd. BB/Stable/B BB-/Stable/B
Union Bank of India BBB-/Stable/A-3 BB+/Stable/B
Ratings affirmed
State Bank of India BBB-/Stable/A-3
HDFC Bank Ltd. BBB-/Stable/A-3
ICICI Bank Ltd. BBB-/Stable/A-3
(foreign currency ratings only)
Axis Bank Ltd. BBB-/Stable/A-3
Kotak Mahindra Bank BBB-/Stable/A-3
Indian Bank BBB-/Stable/A-3
Muthoot Finance Ltd. BB/Stable/B
Manappuram Finance Ltd. BB-/Stable/B
S&P said, "We expect India's financial institutions, especially the
public-sector banks, to sustain their improvement in capital
positions. Bank earnings will also likely be comparable to other
emerging market peers, although margins could decline as the banks
reprice deposits. We expect earnings for our rated non-bank finance
companies to remain healthy despite pressure from rising cost of
funds.
"We have revised upward our assessment of the SACPs of HDFC Bank
Ltd., SBI, and ICICI Bank Ltd. by one notch each. However, the
ratings on the banks are capped by our sovereign credit ratings on
India."
S&P Global Ratings does not rate Indian banks above the sovereign
because of the direct and indirect influence that the sovereign has
on banks operating in the country.
The banking industry's weak loans ratio will continue to improve,
in S&P's view. The ratio was about 5.2% of gross loans as of March
31, 2023. S&P expects this to decline to 3%-3.5% by March 31,
2025.
Indian banks, namely the scheduled commercial banks (mainly public
sector banks and private sector banks), have sharply cut their high
stock of problem assets accumulated during the previous downturn.
They have also reduced economic imbalances. Calibrated credit
growth and a strong focus on underwriting and risk management will
limit the buildup of imbalances over the next two years. Banks will
benefit from India's strong economic growth and better consumer and
business confidence.
S&P expects the asset quality of our rated Indian finance companies
to improve too, with support from favorable economic prospects.
Corporate earnings will likely be better than pre-COVID levels.
Indian corporates have deleveraged significantly in the past decade
and have healthier balance sheets now with better capital
structures. Corporate earnings improved significantly in the past
few years despite rising interest rates and inflation. While the
micro, small, and midsize enterprise sector and low-income
households are vulnerable to rising interest rates and high
inflation, S&P believes interest rates in India will not rise
materially. This should limit risks for the country's financial
sector.
India's passage of its Insolvency and Bankruptcy Code in May 2016
has tilted the balance in favor of lenders. Progress on resolutions
of bad loans remains slow but is much better than before the code
was passed. For instance, the average time for resolution in the
fiscal year ended March 31, 2023 (fiscal 2023), was between one and
two years. Although longer than the 330-day deadline for the
resolution process, this was still much faster than the average of
4.3 years earlier, according to a 2019 report by the World Bank.
Additionally, banks have tightened their underwriting standards and
improved their risk management practices. Digitalization and access
to data (from the goods and services tax, CIBIL score provided by
Credit Information Bureau [India] Ltd., etc.) have improved the
availability of data for banks' underwriting and contributed to
general credit discipline. The Reserve Bank of India has also
tightened regulations, including on governance, and improved
supervision.
That said, governance and transparency improvements remain a work
in progress. Risk management improvements for a few public-sector
banks and the smaller-private sector banks still lag the industry.
If incremental credit growth is not accompanied by better risk
management and corporate governance, another bad-loan cycle could
ensue.
S&P said, "We see a polarization in the performance of Indian
banks. SBI and the top private-sector banks have addressed their
asset-quality issues. Other large public-sector banks are still
saddled with a high volume of weak assets. This could result in
higher credit losses and lower profitability. Although formation of
new nonperforming loans (NPL) and credit cost have declined for
these banks, we still expect them to perform below industry
averages.
"Overall, structural improvements in the operating environment
should improve the resilience of the asset quality of Indian
financial institutions to future downturns. We expect their weak
loans to decline and credit losses to structurally trend down,
after the unwinding of stresses in the system in the past five
years.
"Net credit costs for fiscal 2023 was 1.1% on account of high
recoveries. We expect the number to normalize to about 1.2% over
the next few years. The formation of new NPLs will likely remain at
cyclical lows in fiscal years 2024 and 2025, despite pressure from
higher interest rates.
"Along with better economic conditions, Indian nonbank finance
companies have also benefited from good liquidity at domestic
banks. With rising interest rates and tighter liquidity conditions
globally, we expect borrowing cost to increase for all the finance
companies. However, the rise should be more measured for the
stronger companies or those with better governance."
BICRA Score Snapshot*
TO FROM
BICRA group 5 6
Economic risk 6 7
Economic resilience 4 4
Economic imbalances 2 3
Credit risk in the economy 5 5
Trend Stable Stable
Industry risk 5 5
Institutional framework 4 4
Competitive dynamics 4 4
Systemwide funding 2 2
Trend Stable Stable
Banking Industry Country Risk Assessment (BICRA) economic risk and
industry risk scores are on a scale from 1 (lowest risk) to 10
(highest risk).
Upgrades
BAJAJ FINANCE LTD.
(Primary analyst: Shinoy Varghese)
S&P said, "We upgraded Bajaj Finance to reflect the company's
strengthening earnings and asset quality amid an improvement in
operating conditions. We believe the finance company's continuing
access to low-cost (or differentiated) funding will also support
its credit profile.
"In our view, Bajaj Finance can absorb the impact of higher
inflation and interest rates in India. The country's robust
economic growth should support borrowers' creditworthiness. The
company's adequate underwriting standards and largely mass-affluent
borrowers (other than in the auto-finance business) temper the
higher risk associated with a sizable unsecured consumer lending
book.
"In our view, the financial services business is strategically
important to the ultimate parent, Bajaj Holdings & Investment Ltd.
However, we do not factor any support because the SACP of Bajaj
Finance is same as the sovereign credit rating on India."
Outlook
S&P said, "The stable outlook on Bajaj Finance reflects our view
that the company will maintain its strong market position and
healthy capital level over the next two years. We also expect Bajaj
Finance's liquidity and funding profile to remain adequate over the
period."
Downside scenario: S&P may downgrade Bajaj Finance if the company's
asset quality weakens substantially and its credit costs rise
sharply. The spike in credit costs may be the result of Bajaj
Finance taking undue risks or missteps at the time when the company
is growing aggressively.
Upside scenario: S&P does not see any upgrade potential for Bajaj
Finance in the next two years. This is because an upgrade will
require an improvement in the company's financial profile as well
as the sovereign credit rating on India.
Ratings Score Snapshot
TO FROM
ISSUER CREDIT RATING BBB-/STABLE/A-3 BB+/POSITIVE/B
SACP bbb- bb+
Anchor bb bb-
Business position Strong(+1) Strong(+1)
Capital and earnings Strong (+1) Strong (+1)
Risk position Adequate (0) Adequate (0)
Funding and liquidity Adequate and Adequate and
Adequate(0) Adequate(0)
Comparable ratings analysis 0 0
Support 0 0
ALAC support 0 0
GRE support 0 0
Group support 0 0
Sovereign support 0 0
Additional factors 0 0
HERO FINCORP LTD.
(Primary analyst: Amit Pandey)
S&P said, "Our upgrade reflects our view that Hero FinCorp will
benefit from improved operating conditions in India. We believe the
company will continue to grow its franchise from a small base and
have satisfactory capitalization." Hero FinCorp's profitability is
likely to further improve over the next 12-24 months as high credit
costs in recent years taper gradually.
Hero FinCorp should also have relatively low funding costs due to
the association with Hero MotoCorp, which has a stronger credit
profile. Hero FinCorp has strategic importance to the wider Hero
MotoCorp group and the associated promoters. The group's
willingness and ability to support Hero FinCorp provides three
notches of uplift to the rating.
Outlook
The stable outlook reflects S&P's view that Hero FinCorp is likely
to remain strategically important to, and receive support from, the
Hero MotoCorp group over the next 12-18 months.
Downside scenario: S&P could lower the ratings if Hero FinCorp's
asset quality deteriorates significantly.
Although unlikely, S&P would also downgrade Hero FinCorp if the
group credit profile weakens or if the company's linkages with the
wider group diminish. A material reduction in the group's
shareholding in the company could set back the linkage.
Upside scenario: S&P would raise the ratings on Hero FinCorp in
case of an improvement in the wider group's credit profile as well
as in the finance company's stand-alone creditworthiness.
The SACP could increase if the company's risk-adjusted capital
(RAC) ratio improves and stays above 10%. This could happen if S&P
has more certainty on the conversion of the company's compulsorily
convertible preference shares into common equity.
Ratings Score Snapshot
TO FROM
ISSUER CREDIT RATING BB+/STABLE/B BB/STABLE/B
SACP b+ b
Anchor bb bb-
Business position Moderate (-1) Moderate (-1)
Capital and earnings Adequate (0) Adequate (0)
Risk position Moderate (-1) Moderate (-1)
Funding and liquidity Adequate and Adequate and
Adequate (0) Adequate (0)
Comparable ratings analysis 0 0
Support +3 +3
ALAC support 0 0
GRE support 0 0
Group support +3 +3
Sovereign support 0 0
Additional factors 0 0
SHRIRAM FINANCE LTD.
(Primary analyst: Amit Pandey)
S&P said, "Our upgrade reflects our view that Shriram Finance will
benefit from improved operating conditions in India. We believe the
company will maintain its market leadership in the financing of
used commercial vehicles, strong capital position, and adequate
liquidity." New borrowers may face higher interest costs and debt
repayment burden because central banks (globally and in India) have
tightened monetary policy to curb inflation. However, healthy
freight demand should continue to help commercial vehicle operators
over the next nine to 12 months.
Outlook
S&P said, "The stable ratings outlook reflects our view that
Shriram Finance will largely maintain its current financial profile
over the next 12 months. We also expect the company's asset quality
to be manageable over the period."
Downside scenario: S&P will lower its ratings on Shriram Finance if
the company's asset quality deteriorates significantly. This could
curtail Shriram Finance's access to funds, straining its
liquidity.
Upside scenario: S&P could upgrade Shriram Finance if it expect the
company's RAC ratio to improve and stay above 15% on sustainable
basis.
Ratings Score Snapshot
TO FROM
ISSUER CREDIT RATING BB/STABLE/B BB-/STABLE/B
SACP bb bb-
Anchor bb bb-
Business position Strong (+1) Strong (+1)
Capital and earnings Strong (+1) Strong (+1)
Risk position Moderate (-1) Moderate (-1)
Funding and liquidity Moderate and Moderate and
Adequate (-1) Adequate (-1)
Comparable ratings analysis 0 0
Support 0 0
ALAC support 0 0
GRE support 0 0
Group support 0 0
Sovereign support 0 0
Additional factors 0 0
UNION BANK OF INDIA
(Primary analyst: Ruchika Malhotra)
S&P said, "We upgraded Union Bank to reflect our view that the bank
will improve its asset quality over the next two years on the back
of India's robust economic growth, better operating conditions, and
the bank's improving internal risk management processes.
"Union Bank's asset quality still lags the industry, though the
bank will reduce the gap with peers. We expect Union Bank's weak
loans, defined as NPLs and restructured loans, to fall to about
6.5% of total loans over the next 12-18 months, from about 9.8% at
March 31, 2023. This will reduce the drag on earnings. We expect
the bank's capital to benefit from improved earnings and lower
economic risk. As such, we expect the RAC ratio to remain at about
5.5% over the next 12-18 months."
Outlook
S&P said, "The stable outlook on Union Bank reflects our view that
the bank will maintain its financial profile over the next two
years aided by India's economic recovery, and the bank's
stabilizing earnings and improving asset quality. We expect Union
Bank's funding and liquidity to stay strong, supported by high
customer confidence in the Indian banking system." The bank will
likely close its asset-quality gap with peers while maintaining a
RAC ratio of more than 5%. The very high likelihood of government
support if needed will also continue to underpin the ratings.
Downside scenario: S&P would lower the ratings by a notch if Union
Bank's RAC ratio falls below 5% on a sustained basis.
Large unanticipated asset quality shocks or losses or a reversal of
the improving trend could also lead S&P to downgrade the bank. This
could happen if the economic recovery in India derails, resulting
in asset quality pain for the bank.
Upside scenario: S&P is unlikely to raise the rating on Union Bank
over the next two years because the rating is already in line with
the sovereign rating on India.
Ratings Score Snapshot
TO FROM
ISSUER CREDIT RATING BBB-/STABLE/A-3 BB+/STABLE/B
SACP bb+ bb-
Anchor bbb- bb+
Business position Adequate (0) Adequate (0)
Capital and earnings Moderate (-1) Constrained (-1)
Risk position Moderate (-1) Constrained (-2)
Funding and liquidity Strong and Strong and
Strong (+1) Strong (+1)
Comparable ratings analysis
Support +1 +2
ALAC support 0 0
GRE support +1 +2
Group support 0 0
Sovereign support 0 0
Additional factors 0 0
ESG credit indicators: E-2, S-1, G-3
Revisions In SACP
HDFC BANK LTD.
(Primary analyst: Shinoy Varghese)
S&P revised upward its assessment on HDFC Bank's SACP to 'a-' from
'bbb+' to reflect its view that the bank will maintain its strong
franchise and superior profitability over the next two years. These
strengths will be further consolidated with the bank's merger with
its parent HDFC Ltd.
HDFC Bank's strong management and governance structure underpin its
above-average operating performance. The bank's high earnings
retention and an increase in the share of low-risk mortgages in the
loan book will support its strong capitalization amid above-average
credit growth.
HDFC Bank's asset quality is likely to remain better than the
industry average over the next two years at least. S&P expects the
bank to not dilute its risk management standards to achieve growth,
and to maintain a highly diversified portfolio
S&P affirmed the ratings on HDFC Bank despite the higher SACP
because we do not rate Indian banks above the sovereign. This is
due to the direct and indirect influence that a sovereign has on
banks operating in the country.
Outlook
The stable outlook on HDFC Bank reflects that on the sovereign.
S&P expects HDFC Bank to maintain its solid market position, strong
capitalization, and low credit costs over the next 24 months. The
outlook also reflects its view that HDFC Bank's strong management
will seamlessly carry out the merger with HDFC Ltd. while limiting
any impact on its financial performance.
The ratings on HDFC Bank are capped by S&P's sovereign credit
ratings on India. The ratings on the bank will therefore move in
tandem with that on the sovereign.
Downside scenario: S&P will lower the ratings on HDFC Bank if it
downgrades India.
S&P said, "We will revise downward our assessment of the bank's
SACP if we believe executing the merger has become tougher than we
expected, significantly affecting profitability. We may also assess
that HDFC Bank has a weaker SACP if we expect the bank's
capitalization to come under pressure, with its RAC ratio dropping
sustainably below 10%, or the bank to not be able to maintain its
superior asset quality compared with peers. This could be due to
significantly above-average growth than our expectation."
Upside scenario: S&P will raise its ratings on HDFC Bank if it
upgrades the sovereign.
Ratings Score Snapshot
TO FROM
ISSUER CREDIT RATING BBB-/STABLE/A-3 BBB-/STABLE/A-3
SACP a- bbb+
Anchor bbb- bb+
Business position Strong (+1) Very Strong (+2)
Capital and earnings Strong (+1) Adequate (0)
Risk position Strong (+1) Strong (+1)
Funding and liquidity Adequate and Adequate and
Strong (0) Strong (0)
Comparable ratings analysis 0 0
Support 0 0
ALAC support 0 0
GRE support 0 0
Group support 0 0
Sovereign support 0 0
Additional factors -3 -2
ESG credit indicators: E-2, S-2, G-2
ICICI BANK LTD.
(Primary analyst: Nikita Anand)
S&P said, "We revised upward our assessment of ICICI's SACP to
'bbb' from 'bbb-' to reflect our view that the bank will continue
to gain market share over the next two years and maintain its
strong competitive position in the Indian banking sector. ICICI
Bank's capitalization is comfortable, in our view, supported by
strong earnings to fund above-average growth. We expect the bank's
asset quality to remain better than the industry, though we expect
credit costs to normalize after a solid performance in fiscal
2023.
"We affirmed the ratings on ICICI despite the higher SACP because
we do not rate Indian banks above the sovereign. This is due to the
direct and indirect influence that a sovereign has on banks
operating in the country."
Outlook
The stable outlook on ICICI reflects that on the sovereign.
S&P said, "We expect ICICI to maintain its strong market position
in the Indian banking sector. The bank's asset quality is likely to
remain better than the Indian sector average and comparable to that
of similar rated international peers. In our view, ICICI will
maintain good capitalization over the next 12-18 months, supported
by healthy earnings."
Downside scenario: S&P could lower the ratings on ICICI if it
downgrade India. S&P will revise downward our assessment of ICICI's
SACP if the bank's asset quality deteriorates. This could happen if
the bank's above-average credit growth results in a buildup of
credit risk.
Upside scenario: S&P could upgrade ICICI if we raise our sovereign
rating on India.
Ratings Score Snapshot
TO FROM
ISSUER CREDIT RATING BBB-/STABLE/A-3 BBB-/STABLE/A-3
SACP bbb bbb-
Anchor bbb- bb+
Business position Strong (+1) Strong (+1)
Capital and earnings Adequate (0) Adequate (0)
Risk position Adequate (0) Adequate (0)
Funding and liquidity Adequate and Adequate and
Adequate (0) Adequate (0)
Comparable ratings analysis 0 0
Support 0 0
ALAC support 0 0
GRE support 0 0
Group support 0 0
Sovereign support 0 0
Additional factors -1 0
ESG credit indicators: E-2, S-2, G-3
STATE BANK OF INDIA
(Primary analyst: Nikita Anand)
S&P said, "We revised upward our assessment of SBI's SACP to 'bbb'
from 'bbb-' to reflect the bank's lower credit risks and improving
earnings. The bank's risk-adjusted capital ratio should therefore
stay above 5% over the next 12-24 months. We forecast SBI's return
on assets will stay at 0.9%-1.0% over next two years, supported by
contained credit costs amid a benign credit cycle in India.
"We affirmed the ratings on SBI despite the higher SACP because we
do not rate Indian banks above the sovereign. This is due to the
direct and indirect influence that a sovereign has on banks
operating in the country."
Outlook
The stable outlook on SBI reflects that on the sovereign.
S&P said, "We expect the bank to maintain its market leadership in
India's banking sector over the next two years. SBI's funding and
liquidity will stay strong, supported by high customer confidence.
In our view, the bank's asset quality should remain better than the
Indian sector average and comparable to that of similar rated
international peers. SBI's capitalization is likely to stay weaker
than for Indian private sector banks. We continue to factor in a
very high likelihood of government support for SBI in our
ratings."
Downside scenario: A downgrade of SBI is unlikely, in its view.
S&P's assessment of SBI's SACP will need to weaken by several
notches for that to happen.
Upside scenario: S&P could upgrade SBI if it raise its sovereign
ratings on India over the next two years.
Ratings Score Snapshot
TO FROM
ISSUER CREDIT RATING BBB-/STABLE/A-3 BBB-/STABLE/A-3
SACP bbb bbb-
Anchor bbb- bb+
Business position Strong (+1) Strong (+1)
Capital and earnings Moderate (-1) Constrained (-1)
Risk position Adequate (0) Adequate (0)
Funding and liquidity Strong and Strong and
Strong (+1) Strong (+1)
Comparable ratings analysis 0 0
Support 0 0
ALAC support 0 0
GRE support 0 0
Group support 0 0
Sovereign support 0 0
Additional factors -1 0
ESG credit indicators: E-2, S-1, G-3
Affirmations (No Change In SACP)
AXIS BANK LTD.
(Primary analyst: Nikita Anand)
S&P affirmed its ratings on Axis to reflect the bank's strong
market position in India and comfortable capitalization.
Axis' funding profile is improving on the back of its increasing
distribution network, focus on growth in granular retail deposits,
and opportunities to deepen market share of corporate salary
accounts following the acquisition of Citigroup Inc.'s consumer
portfolio in India.
The share of wholesale borrowings in Axis' funding base, and the
bank's deposit concentration are higher than for Indian banks with
a 'bbb' SACP. This results in Axis having lower profitability when
compared with other large Indian private sector banks.
Outlook
The stable outlook on Axis reflects S&P's view that the bank will
maintain its strong market position in India's banking sector over
the next two years. Axis' capitalization should stay comfortable,
notwithstanding a hit from the acquisition of Citigroup Inc.'s
retail portfolio in India. Steady growth in Axis' retail deposit
base as well as the bank's good access to capital markets should
support its funding profile.
Downside scenario: S&P sees limited downside risks to its rating on
Axis over the next one to two years.
Upside scenario: An upgrade of Axis is unlikely over the next one
to two years. An upgrade will require an improvement in the bank's
financial profile as well as the sovereign credit rating on India.
S&P said, "We could revise our assessment of Axis Bank's SACP
upward by a notch to 'bbb' if the bank's funding profile and
earnings improve sustainably and are commensurate with similar
rated Indian private sector banks."
Ratings Score Snapshot
TO FROM
ISSUER CREDIT RATING BBB-/STABLE/A-3 BBB-/STABLE/A-3
SACP bbb- bbb-
Anchor bbb- bb+
Business position Strong (+1) Strong (+1)
Capital and earnings Adequate (0) Adequate (0)
Risk position Adequate (0) Adequate (0)
Funding and liquidity Adequate and Adequate and
Adequate (0) Adequate (0)
Comparable ratings analysis -1 0
Support 0 0
ALAC support 0 0
GRE support 0 0
Group support 0 0
Sovereign support 0 0
Additional factors 0 0
ESG credit indicators: E-2, S-2, G-3
INDIAN BANK
(Primary analyst: Shinoy Varghese)
S&P affirmed its ratings on Indian Bank to reflect its expectation
of a very high likelihood of government support for the bank.
Indian Bank's funding benefits from its highly sticky and stable
deposit base. S&P also expect the bank's asset quality to improve
gradually with only a limited impact of high inflation and interest
rates. Indian Bank's earnings should improve on the back of
increased growth and a gradual reduction in credit costs. The bank
also has the flexibility to raise additional capital, if needed, to
support its capitalization.
Outlook
S&P said, "The stable outlook reflects our expectation that the
likelihood of government support for Indian Bank will remain very
high over the next 24 months.
"We believe Indian Bank's financial profile will gradually improve
owing to an improvement in operating conditions. In our view, the
bank will maintain its solid funding and liquidity profile over the
next two years."
Downside scenario: S&P could lower the ratings by one notch if the
improvement in Indian Bank's asset quality slows down, leading to a
significant divergence when compared to peers'.
Upside scenario: An upgrade of Indian Bank is unlikely in the next
two years because that would require both an improvement in the
SACP to 'bbb-' from the current 'bb+' and a higher sovereign credit
rating on India.
S&P's assessment of Indian Bank's SACP may improve if the bank's
asset quality strengthens to levels in line with international
peers' or if its capital position sustainably improves above 7%.
Ratings Score Snapshot
TO FROM
ISSUER CREDIT RATING BBB-/STABLE/A-3 BBB-/STABLE/A-3
SACP bb+ bb+
Anchor bbb- bb+
Business position Adequate (0) Adequate (0)
Capital and earnings Moderate(-1) Moderate(0)
Risk position Moderate(-1) Moderate (-1)
Funding and liquidity Strong and Strong and
Strong(+1) Strong(+1)
Comparable ratings analysis 0 0
Support +1 +1
ALAC support 0 0
GRE support +1 +1
Group support 0 0
Sovereign support 0 0
Additional factors 0 0
ESG credit indicators: E-2, S-1, G-3
KOTAK MAHINDRA BANK
(Primary analyst: Nikita Anand)
S&P affirmed its ratings on Kotak to reflect the bank's strong
capitalization, solid risk management, and growing franchise in
India. Kotak's strong earnings, high profit retention, and timely
equity raisings have ensured the bank has the highest
capitalization among its peers in India.
Kotak's funding profile has steadily improved over the past several
years and benefits from increasing digitalization in the Indian
banking industry. That said, the bank's market share is only about
2% of sector loans and deposits.
S&P expects Kotak Bank to maintain its diversified deposit
franchise over the next 12-18 months. The bank is likely to take
advantage of increasing adoption of digital channels and improving
branch network to maintain one of the highest share of low-cost
deposits in the industry.
However, the share of wholesale borrowings in Kotak's funding base,
and the bank's deposit concentration are higher than for Indian
banks with a 'bbb' SACP.
Outlook
S&P said, "The stable outlook on Kotak reflects our view that the
bank's capitalization will stay strong, and the bank will maintain
its superior risk management over the next two years. We believe
Kotak Mahindra Bank's market share will continue to improve
gradually."
Downside scenario: S&P sees limited downside risks to Kotak's
rating over the next one to two years.
Upside scenario: An upgrade of Kotak is unlikely over the next one
to two years. This is because that will require an improvement in
the bank's financial profile as well as the sovereign credit rating
on India.
S&P could revise its assessment of Kotak's SACP upward by a notch
to 'bbb' if the bank's funding profile and market position improve
sustainably and are commensurate with similar rated Indian banks.
Ratings Score Snapshot
TO FROM
ISSUER CREDIT RATING BBB-/STABLE/A-3 BBB-/STABLE/A-3
SACP bbb- bbb-
Anchor bbb- bb+
Business position Adequate (0) Adequate (0)
Capital and earnings Strong (+1) Strong (+1)
Risk position Adequate (0) Adequate (0)
Funding and liquidity Adequate and Adequate and
Adequate (0) Adequate (0)
Comparable ratings analysis -1 0
Support 0 0
ALAC support 0 0
GRE support 0 0
Group support 0 0
Sovereign support 0 0
Additional factors 0 0
ESG credit indicators: E-2, S-2, G-2
MANAPPURAM FINANCE LTD.
(Primary analyst: Shinoy Varghese)
The affirmed ratings on Manappuram are driven by the company's
excellent capitalization, supported by low leverage and very high
profitability. Manappuram's RAC ratio is at about 30%. The company
also has strong brand recognition and a track record in gold-backed
financing.
S&P believes Mannapuram will benefit from India's economic buoyancy
and an improvement in operating conditions. However, the company's
earnings are unlikely to expand because banks are getting
aggressive in the lucrative gold-backed financing segment.
Mannapuram's assets and liabilities are well matched. However, the
company needs to continually refinance its funding to meet its
lending needs, given the short-term nature of its borrowings.
Outlook
The stable outlook on Manappuram reflects S&P's view that the
company will largely maintain its financial profile over the next
12 months, despite intense competition.
Downside scenario: S&P could downgrade Manappuram if the company's
credit costs increase substantially more than it expects,
particularly in microfinance loans.
Upside scenario: S&P said, "We see limited rating upside for
Manappuram over the next 12 months. We would upgrade the company if
we believe its funding profile has become more stable." Increased
access to longer-term funding that reduces the rollover risk
associated with short-term wholesale funding could indicate such
improvement.
Ratings Score Snapshot
TO FROM
ISSUER CREDIT RATING BB-/STABLE/B BB-/STABLE/B
SACP bb- bb-
Anchor bb bb-
Business position Moderate(-1) Moderate(-1)
Capital and earnings Very Strong(+2) Very Strong(+2)
Risk position Moderate(-1) Moderate(-1)
Funding and liquidity Moderate and Moderate and
Adequate(-1) Adequate(-1)
Comparable ratings analysis 0 +1
Support 0 0
ALAC support 0 0
GRE support 0 0
Group support 0 0
Sovereign support 0 0
Additional factors 0 0
MUTHOOT FINANCE LTD.
(Primary analyst: Shinoy Varghese)
S&P affirmed its ratings on Muthoot because it expects the company
to maintain its very strong capital and earnings over the next 12
months.
S&P believes Muthoot will benefit from India's economic buoyancy
and an improvement in operating conditions. The company is among
the largest players in loans against household gold jewelry (gold
loans), though it is small in the overall financial sector in
India. However, Muthoot's earnings are unlikely to expand because
banks are getting aggressive in the lucrative gold loan segment.
The company's assets and liabilities are well matched. However,
Muthoot needs to continually refinance its funding to meet lending
needs, given the short-term nature of its borrowings.
Outlook
S&P's stable outlook on Muthoot reflects its view that the company
will maintain its capitalization and robust market position in gold
loans over the next 12 months. This is despite intense
competition.
Downside scenario: S&P could lower the ratings if competition
intensifies such that Muthoot's market position in the gold loan
segment deteriorates.
Upside scenario: S&P could raise the ratings on Muthoot if the
company is able to diversify its funding profile to more long-term
and stable sources.
Ratings Score Snapshot
TO FROM
ISSUER CREDIT RATING BB/STABLE/B BB/STABLE/B
SACP bb bb
Anchor bb bb-
Business position Adequate (0) Adequate (0)
Capital and earnings Very Strong(+2) Very Strong(+2)
Risk position Moderate(-1) Moderate(-1)
Funding and liquidity Moderate and Moderate and
Adequate(-1) Adequate(-1)
Comparable ratings analysis 0 +1
Support 0 0
ALAC support 0 0
GRE support 0 0
Group support 0 0
Sovereign support 0 0
Additional factors 0 0
Ratings List
AXIS BANK LTD.
RATINGS AFFIRMED
AXIS BANK LTD.
Issuer Credit Rating BBB-/Stable/A-3
AXIS BANK LTD. (DUBAI INTERNATIONAL FINANCIAL CENTRE BRANCH)
Senior Unsecured BBB-
AXIS BANK LTD. (GIFT CITY BRANCH)
Senior Unsecured BBB-
BAJAJ FINANCE LTD.
UPGRADED
TO FROM
BAJAJ FINANCE LTD.
Issuer Credit Rating BBB-/Stable/A-3 BB+/Positive/B
HDFC BANK LTD.
RATINGS AFFIRMED
HDFC BANK LTD.
Issuer Credit Rating BBB-/Stable/A-3
HDFC BANK LTD.
Senior Unsecured BBB-
HDFC BANK LTD. (GIFT-CITY BRANCH)
Senior Unsecured BBB-
HERO FINCORP LTD.
UPGRADED
TO FROM
HERO FINCORP LTD.
Issuer Credit Rating BB+/Stable/B BB/Stable/B
ICICI BANK LTD.
RATINGS AFFIRMED
ICICI BANK LTD.
Issuer Credit Rating
Foreign Currency BBB-/Stable/A-3
ICICI BANK LTD. (DUBAI BRANCH)
Senior Unsecured BBB-
ICICI BANK LTD. (NEW YORK BRANCH)
Senior Unsecured BBB-
INDIAN BANK
RATINGS AFFIRMED
INDIAN BANK
Issuer Credit Rating BBB-/Stable/A-3
KOTAK MAHINDRA BANK
RATINGS AFFIRMED
KOTAK MAHINDRA BANK
Issuer Credit Rating BBB-/Stable/A-3
MANAPPURAM FINANCE LTD.
RATINGS AFFIRMED
MANAPPURAM FINANCE LTD.
Issuer Credit Rating BB-/Stable/B
MUTHOOT FINANCE LTD.
RATINGS AFFIRMED
MUTHOOT FINANCE LTD.
Issuer Credit Rating BB/Stable/B
MUTHOOT FINANCE LTD.
Senior Secured BB
SHRIRAM FINANCE LTD.
UPGRADED
TO FROM
SHRIRAM FINANCE LTD.
Senior Secured BB BB-
SHRIRAM FINANCE LTD.
Issuer Credit Rating BB/Stable/B BB-/Stable/B
STATE BANK OF INDIA
RATINGS AFFIRMED
STATE BANK OF INDIA
Issuer Credit Rating BBB-/Stable/A-3
STATE BANK OF INDIA
Senior Unsecured BBB-
STATE BANK OF INDIA (DUBAI BRANCH)
Junior Subordinated BB-
STATE BANK OF INDIA (LONDON BRANCH)
Senior Unsecured BBB-
UNION BANK OF INDIA
UPGRADED
TO FROM
UNION BANK OF INDIA
Issuer Credit Rating BBB-/Stable/A-3 BB+/Stable/B
MATRIX CERAMIC: ICRA Keeps B+ Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has retained the long-term and short-term ratings for the bank
facilities of Matrix Ceramic in the 'Issuer Not Cooperating'
category. The ratings are denoted as "[ICRA]B+ (Stable)/[ICRA]A4;
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 1.12 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Short Term- 1.50 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
Others to remain under 'Issuer Not
Cooperating' category
Long Term- 4.50 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to 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.
Matrix Ceramic commenced commercial production of ceramic floor
tiles of size 12"x12" in September 2007 with a production capacity
of 6,500 boxes per day. Its plant is located at Morbi in Rajkot
district of Gujarat. In September 2013, the firm changed its
operations to manufacturing of ceramic wall tiles of size 8"X12"
with a production capacity of 5500 boxes per day. In December 2014,
it recommenced manufacturing of floor tiles of size 12"x12" with
its current product profile comprising of both wall tiles of size
8"X12" and floor tiles of size 12"X12". In December 2014 the firm
installed a roller kiln which enabled it to increase its installed
capacity to manufacture 9,000 boxes of wall tiles or 8000 boxes of
floor tiles per day. The firm has established 'Matrix' brand for
selling its product in the market. Further, the founder promoter is
having an experience in ceramic industry by virtue of his
association with another ceramic product-oriented firm.
MUKTA INDUSTRIES: ICRA Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
ICRA has retained the long-term and short-term ratings of Mukta
Industries Private Limited in the 'Issuer Not Cooperating'
category. The rating is denoted as "[ICRA]D/[ICRA]D; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 25.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Short term– 5.00 [ICRA]D; ISSUER NOT
COOPERATING;
Non fund based Rating Continues to remain under
Others 'Issuer Not Cooperating'
Category
Unallocated 5.00 [ICRA]D/[ICRA]D; ISSUER NOT
Limits COOPERATING; Rating Continues to
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.
Established in 1994 as a private limited company, Mukta Industries
Private Limited (MIPL) is a metal trading company involved in
various metal products, which include alloy steel bars and rods,
billets, channels, wire rods and plates of different alloy grades.
The Mukta Group of Industries consists of other entities namely
Prakash Steel Corporation (PSC), Vastupal Bearing Races Limited
(VBRL), Mukta Automation Private Limited (MAPL) and Vastupal Sales
& Services LLP (VSSL). While PSC manufactures bright bars using
different grade of stainless steel, alloy steel and carbon steel,
VBRL manufactures forged and machined bearing used in ball bearing,
roller bearings, taper bearings and auto ancillary industry. MAPL
manufactures machined items as per customer's specifications and
VSSL provides financial services.
In FY2019, on a provisional basis, the company reported a net
profit of INR0.44 crore on an operating income of INR80.80 crore,
as compared to a net profit of INR0.24 crore on an operating income
of INR133.44 crore in the previous fiscal.
MUKTAR AUTOMOBILES: CARE Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Muktar
Automobiles Private Limited (MAPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 11.88 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 3.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated June 9, 2022,
placed the rating(s) of MAPL under the 'issuer non-cooperating'
category as MAPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. MAPL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 25, 2023, May 5, 2023, May 15, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Muktar Automobiles Private Limited (MAPL) incorporated in May 2011
is an authorized dealer of passenger vehicles (PV) segment for
Mahindra & Mahindra Limited. MAPL is based out of Goa and is
engaged in the sale of new cars, servicing of the vehicles and sale
of the spare parts and accessories for MML. MAPL currently operates
out of five facilities in Goa and one in Mangalore.
NATIONAL (INDIA): ICRA Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
ICRA has retained the long-term and short-term ratings for the bank
facilities of National (India) Contractors & Engineers 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– 7.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term/ 14.35 [ICRA]D/[ICRA]D; ISSUER NOT
Short Term COOPERATING; Rating Continues to
Fund Based/ remain under 'Issuer Not
Others Cooperating' Category
Long-term/ 3.15 [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.
NICE was set up in 1962 by Mr. Usmangani Khatri and is at present
managed by three partners, Mr. Faruk Khatri, Mr. Zuber Khatri and
Mr. Rizwan Khatri. The firm is involved in the construction of
buildings, factories, townships and universities, as well as in the
trading metals and primarily steel. The firm is based out of Mumbai
and executes construction projects primarily in
Maharashtra and Rajasthan. In FY2020, NICE reported a net profit of
INR0.52 crore on an OI of INR27.37 crore compared to a net profit
of INR0.75 crore on an OI of INR40.82 crore in the previous year.
P.K. MOOKANAMBALAM: ICRA Keeps B+ Debt Rating in Not Cooperating
----------------------------------------------------------------
ICRA has retained the Long-Term and Short-Term rating of P.K.
Mookanambalam & Co. in the 'Issuer Not Cooperating' category. The
ratings are denoted as "[ICRA]B+ (Stable)/[ICRA]A4; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 5.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Short Term- 50.00 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
Others to 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.
P.K. Mookanambalam & Co., a partnership firm established in 1964,
is involved in the construction of roads, bridges, and other civil
structures for government entities such as Tamil Nadu State
Highways, Indian Railways and NHAI. The firm was established by
three partners, Late P.K. Mookanambalam, Mr. K. Arumugasamy and Mr.
PKM Chelliah. The firm has established experience of close to 50
years in the civil construction sector of Tamil Nadu.
S.B. CARS: ICRA Keeps B+ Debt Ratings in Not Cooperating Category
-----------------------------------------------------------------
ICRA has retained the long-term ratings for the bank facilities of
S.B. Cars Private Limited in the 'Issuer Not Cooperating' category.
The ratings are denoted as "[ICRA]B+ (Stable); ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 26.25 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 3.75 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to 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.
S.B. Cars Private Limited was incorporated in March 2008 and had
been operating as an authorized dealer for vehicles of Maruti
Suzuki India Limited (MSIL) in Kanpur, Unnao, Orai and Kalyanpur.
The company is promoted by Oberoi family namely Mr. Hari Kishan
Oberoi and his wife Mrs. Sanjana Oberoi. The day to day management
of the company is take care by Mr. Hari Kishan Oberoi along with
support from other directors.
SUMA FOODS: ICRA Keeps D Debt Ratings in Not Cooperating Category
-----------------------------------------------------------------
ICRA has retained the Long-Term ratings of Suma Foods Private
Limited in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 8.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term– 7.79 [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.
SFPL was established in July 2015. The company is primarily
involved in the milling of paddy rice with an installed capacity of
16 ton per hour. It has a sortex machine with the capacity of 16
tonne per hour. The milling unit is based out of Nissing (Karnal).
The company sells rice to states like Punjab, Haryana, UP, Delhi.
UNIFYTWIN INDIA: Voluntary Liquidation Process Case Summary
-----------------------------------------------------------
Debtor: Unifytwin India Private Limited
74/A, Survey No. 68(P), Koenics, Electronic City Phase I,
Hosur Main Road, Bangalore Karnataka 560100
Liquidation Commencement Date: June 9, 2023
Court: National Company Law Tribunal, Bengaluru Bench
Liquidator: Mr. Vighneshwar Bhat
No. 202, A Block Sree Laxmi Nivas Apartments,
Wilson Garden 13TH Cross,
Near Wilson Manor Apartments,
Bangalore, Karanataka 560027
Email: bhatvighnesh@gmail.com
Phone No: +91 950252851
Last date for
submission of claims: July 9, 2023
===============
M A L A Y S I A
===============
RAPID SYNERGY: Says Land Sale Won't Trigger PN17 Status
-------------------------------------------------------
News Straits Times reports that Rapid Synergy Bhd does not
anticipate that the proposed sale of land and a building in Perak
for MYR25 million will cause it to turn into a cash company or a
PN17 issuer in accordance with the Main Market Listing Requirement
of Bursa Malaysia.
According to the report, the company said it is selling 11,345
square metres of leasehold land and a commercial building in Ipoh
to unlock and realise the value of the property and to raise money
for various uses.
For the planned disposal, its subsidiary, Fresh Melody Sdn Bhd
(FMSB), has a conditional sale and purchase agreement in place with
Intra Megamas Sdn Bhd.
NST relates that Rapid Synergy said the company would be able to
use the cash proceeds from the sale of the property to pay off bank
loans totaling MYR10 million, expand the business, and meet working
capital needs of MYR13.75 million.
It said that the MYR25 million sale price was determined on a
"willing-buyer" and "willing-seller" basis, subject to a lease, and
free of any encumbrances.
"The Board is of the view that the sale consideration is
justifiable after taking into account the NBV of the property based
on the audited consolidated financial statements of FMSB as of
December 31, 2021," it said.
Rapid Synergy invested MYR9.89 million on the land in November 2007
and MYR18.41 million in the building in November 2011, according to
the filing cited by NST.
The lease on the commercial building, which is 10 years old,
expires on August 8, 2004. Tenaga Nasional Bhd has leased a section
of the site.
Subject to the transfer consent being finalised, the company
anticipates the sale to close by the second quarter of 2025, the
report relays.
Rapid Synergy's revenue for the first quarter ended March 31, 2023
(Q12023) decreased to MYR5.88 million from MYR8.27 million recorded
in the immediately preceding quarter, NST discloses.
The company declared a pre-tax profit of MYR300,000 for the
quarter, down from the MYR3.22 million pre-tax profit reported in
the immediately before quarter, the report adds.
Rapid Synergy Berhad is an investment holding company. Through its
subsidiaries, the Company manufactures precision tools, dies, and
molds for the semiconductor and electronics industry. Rapid Synergy
also develops and invests in property.
=====================
N E W Z E A L A N D
=====================
KANNAK PROPERTY: Creditors' Proofs of Debt Due on July 20
---------------------------------------------------------
Creditors of Kannak Property Services Limited are required to file
their proofs of debt by July 20, 2023, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on June 21, 2023.
The company's liquidators are:
Steven Khov
Kieran Jones
Khov Jones Limited
PO Box 302261
North Harbour
Auckland 0751
MAJOR BRANDS: Creditors' Proofs of Debt Due on July 28
------------------------------------------------------
Creditors of Major Brands Limited are required to file their proofs
of debt by July 28, 2023, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on June 15, 2023.
The company's liquidator is:
Thomas Lee Rodewald
C/- Rodewald Consulting Limited
Level 1, The Hub
525 Cameron Road
PO Box 15543
Tauranga 3144
MIX MART: Court to Hear Wind-Up Petition on July 3
--------------------------------------------------
A petition to wind up the operations of Mix Mart Limited will be
heard before the High Court at Tauranga on July 3, 2023, at 10:00
a.m.
The Commissioner of Inland Revenue filed the petition against the
company on May 18, 2023.
The Petitioner's solicitor is:
T. Saunders
Inland Revenue, Legal Services
21 Home Straight
PO Box 432
Hamilton
RUAPEHU ALPINE: Govt. to Put Up NZD5MM to Ensure Ruapehu Skiing
---------------------------------------------------------------
Stuff.co.nz reports that the Government is set to provide up to
NZD5 million to the liquidators of Ruapehu Alpine Lifts (RAL) to
ensure the ski season can go ahead this year.
According to Stuff, Regional Development Minister Kiri Allan said
that would give time for liquidators to decide on the purchaser or
purchasers of the business and its assets.
The money is a loan, from Kanoa's Regional Strategic Priorities
Fund, the report says.
Stuff relates that Ruapehu mayor Weston Kirton said he welcomed the
Government funding, which would secure the future of skiing on Mt
Ruapehu and help the regional economy.
Mr. Kirton said getting to this point has been an emotional and
trying time for everyone.
It was a "tremendous relief" for the Ruapehu community, with the
ski industry contributing approximately one-tenth of the regional
GDP, he said.
"The decision to support the 2023 ski season will ensure job
security for the workers on the mountain and provide much needed
certainty for businesses that rely on the ski industry," Stuff
quotes Mr. Kirton as saying.
At the watershed meeting of creditors on June 20, none of the
proposals to take over the business were successful.
Stuff notes that creditors, which include the government, ANZ Bank,
and skifield life pass holders, had to choose between three options
for the future of the skifield.
Resolution A, which was executing a deed of company arrangement
proposed by the Ruapehu Skifield Stakeholders Association to retain
the RAL company structure and renegotiate the company's debts,
would have relied on life-pass holders purchasing new life passes
to retain their right to ski, and crowdfunding to generate new
capital.
Resolution B, which was the recommended option by the liquidators,
involved the support of the Government in a "pre-packaged
liquidation" followed by the sale of the Whakapapa and Turoa
skifields to two new entities, Whakapapa Holdings and Pure Turoa
(PTL), for $1 each.
Because neither of these options was successful, RAL went into
liquidation, the third option, Stuff states.
"We've always been committed to finding a way to ensure the ski
season on Mount Ruapehu goes ahead this year. Cabinet's decision
today has solidified that," Stuff quotes Ms. Allan as saying.
"Ruapehu is a very significant part of the economy in the central
North Island, accounting for around a tenth of regional GDP, or
NZD100 million per year. The season going ahead will save hundreds
of jobs and support local tourism, the regional economy and the
community, while a long-term solution is found.
"This will provide workers on the mountain with job security and
ensure businesses dependent on activities on and around the
mountain have the certainty they need for the season ahead. The
liquidator is able to operate under the existing concessions."
She said there had been a further expression of interest to take
over the ski operations on the mountain, from Te Ariki Ta Tumu Te
Heuheu on behalf of Tuwharetoa.
"The final decision in relation to the sale is made by the
liquidator. The Government is now considering the three bids for
Government support and I have asked MBIE to engage with the bidders
to determine the best outcome for RAL's creditors, the Crown, the
local economy and community.
"The government remains committed to ensuring the best possible
outcome for the region for many future ski seasons," Ms. Allan
said.
Ruapehu Alpine Lifts Limited operates the Whakapapa and Turoa
skifields in the central North Island.
SFUND LIMITED: Court to Hear Wind-Up Petition on July 10
--------------------------------------------------------
A petition to wind up the operations of Sfund Limited will be heard
before the High Court at Hamilton on July 10, 2023, at 10:45 a.m.
Eroad Limited filed the petition against the company on May 19,
2023.
The Petitioner's solicitor is:
Jeffrey Gray Ussher
Level 19, 191 Queen Street
Auckland
VAKA INTERACTIV: Creditors' Proofs of Debt Due on July 21
---------------------------------------------------------
Creditors of Vaka Interactiv Limited are required to file their
proofs of debt by July 21, 2023, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on June 19, 2023.
The company's liquidator is:
Digby John Noyce
RES Corporate Services Limited
PO Box 301890
Albany
Auckland 0752
===============
P A K I S T A N
===============
PAKISTAN: Hikes Rate to Record High in Emergency Meet as IMF Looms
------------------------------------------------------------------
Bloomberg News reports that Pakistan's central bank unexpectedly
raised its benchmark rate to a record high in an emergency meeting
as the nation makes a final attempt to revive its loan program with
the International Monetary Fund.
According to Bloomberg, the State Bank of Pakistan's monetary
policy committee decided to raise rates by 100 basis points to 22%,
it said in a statement in Karachi on June 26. The decision has been
taken after inflationary risks emerged from the recently announced
budget and decision to lift restrictions on imports, said the
statement.
"While the MPC views these measures as necessary in the context of
completion of the ongoing IMF program, they have increased the
upside risks to the inflation outlook," it said in a statement.
The South Asian nation is going through its worst economic crisis
amid record inflation and interest rates but it has seen prospects
for its IMF loan take a positive turn before it expires at the end
of the week. In a dramatic final attempt to appease the lender, the
nation agreed to raise taxes by $750 million and cut spending in
its annual budget over the weekend.
Pakistan's dollar bonds rose and local stocks rallied on optimism
the nation is going to secure its loan program. The nation has seen
its loan program stall for more than half a year amid prolonged
negotiations over issues such as the financing gap and taxes.
"The decision will help in securing the IMF aid and reduce the
strain on scant reserves by curbing demand," said Ankur Shukla, an
economist at Bloomberg Economics. The rate hike would likely hurt
growth, but avoiding the default is a bigger priority for Pakistan
right now, he added.
Pakistan faces about $23 billion of external debt service for the
fiscal year 2024, which begins in July, more than five times the
nation's reserves.
Pakistan could default without an IMF loan given its very weak
reserves, Moody's Investors Service warned this month. Pakistan is
the last of three South Asian countries to clinch IMF funding due
to delays in delivering reforms and getting creditors to agree amid
the political crisis.
The rate move, the expected completion of the ongoing IMF program
and the government adhering to the target of generating a primary
surplus in fiscal year starting July would help in addressing
external-sector vulnerabilities and reduce economic uncertainty,
the central bank said.
Pakistan's consumer prices rose to a record 37.97% in May, the
highest in Asia. The authorities have hiked energy prices and
allowed its currency to weaken this year to meet the IMF's
prescriptions. The relaxation in imports may exert pressures in the
foreign exchange market, said the statement.
The committee views the rate hike as necessary to keep real
interest rates in positive territory going forward, the central
bank said on its website Monday.
"In the broader scheme of things this looks like one of the
requirements from the IMF," said Tahir Abbas, head of research at
Karachi-based Arif Habib Ltd., from Karachi. "If you looks at the
way things have unfolded in last few days and seeing all these
measures Pakistan has taken, there is a high probability for the
IMF agreement to happen now."
About Pakistan
Pakistan is a country located in South Asia. It has a coastline
along the Arabia Sea and the Gulf of Oman and is bordered by
Afghanistan, China, India, and Iran. Pakistan's capital is
Islamabad.
As recently reported in the Troubled Company Reporter-Asia Pacific,
Moody's Investors Service has downgraded the Government of
Pakistan's local and foreign currency issuer and senior unsecured
debt ratings to Caa3 from Caa1. Moody's has also downgraded the
rating for the senior unsecured MTN programme to (P)Caa3 from
(P)Caa1. Concurrently, Moody's has also changed the outlook to
stable from negative. The decision to downgrade the ratings is
driven by Moody's assessment that Pakistan's increasingly fragile
liquidity and external position significantly raises default risks
to a level consistent with a Caa3 rating.
=================
S I N G A P O R E
=================
ATLANTIC ENSENADA: Commences Wind-Up Proceedings
------------------------------------------------
Members of Atlantic Ensenada Pte Ltd and Atlantic Merida Pte Ltd on
June 16, 2023, passed a resolution to voluntarily wind up the
company's operations.
The company's liquidators are:
Goh Yeow Kiang Victor
Khor Boon Hong
Baker Tilly TFW LLP
600 North Bridge Road
#05-01 Parkview Square
Singapore 188778
EMERALD LAND: Creditors' Proofs of Debt Due on July 26
------------------------------------------------------
Creditors of Emerald Land Pte. Ltd. are required to file their
proofs of debt by July 26, 2023, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on June 21, 2023.
The company's liquidators are:
Toh Ai Ling
Bob Yap Cheng Ghee
Chan Kwong Shing, Adrian
c/o 12 Marina View #15-01
Asia Square Tower 2
Singapore 018961
HSE HOLDINGS: Creditors' Proofs of Debt Due on July 26
------------------------------------------------------
Creditors of HSE Holdings Pte. Ltd. are required to file their
proofs of debt by July 26, 2023, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on June 21, 2023.
The company's liquidators are:
Toh Ai Ling
Bob Yap Cheng Ghee
Chan Kwong Shing, Adrian
c/o 12 Marina View #15-01
Asia Square Tower 2
Singapore 018961
MULTIPLE CAPITAL: Creditors' Proofs of Debt Due on July 27
----------------------------------------------------------
Creditors of Multiple Capital Investment Partners (Singapore) Pte.
Ltd. are required to file their proofs of debt by July 27, 2023, to
be included in the company's dividend distribution.
The company commenced wind-up proceedings on June 19, 2023.
The company's liquidator is:
Ong Kok Yeong David
c/o Tricor Singapore
80 Robinson Road #02-00
Singapore 068898
PACIFIC CHINA: Commences Wind-Up Proceedings
--------------------------------------------
Members of Pacific China Holdings (Zhuhai) Pte Ltd, on June 16,
2023, passed a resolution to voluntarily wind up the company's
operations.
The company's liquidators are:
Goh Yeow Kiang Victor
Khor Boon Hong
Baker Tilly TFW LLP
600 North Bridge Road
#05-01 Parkview Square
Singapore 188778
=================
S R I L A N K A
=================
SRI LANKA: China to Continue with Aid 'Within its Capabilities'
---------------------------------------------------------------
Reuters reports that China will continue to provide assistance
"within its capabilities" for Sri Lanka's economic and social
development, China Foreign Minister Qin Gang said on June 25.
Reuters relates that Qin Gang, in a meeting with Sri Lanka
counterpart Ali Sabry in Beijing, said China is willing to
consolidate and expand the strategic cooperative partnership
between the two countries, according to a statement on the foreign
ministry's website.
Sri Lanka, formerly known as Ceylon and officially the Democratic
Socialist Republic of Sri Lanka, is an island country in South
Asia. It lies in the Indian Ocean, southwest of the Bay of Bengal,
and southeast of the Arabian Sea; it is separated from the Indian
subcontinent by the Gulf of Mannar and the Palk Strait. Sri Lanka
shares a maritime border with India and the Maldives. Sri
Jayawardenepura Kotte is its legislative capital, and Colombo is
its largest city and financial centre.
The island nation defaulted on its foreign debt for the first time
in its history in April last year as the worst financial crisis
since independence from Britain in 1948 crushed its economy.
As reported in the Troubled Company Reporter-Asia Pacific, S&P
Global Ratings, on April 26, 2023, affirmed its long-term and
short-term foreign currency sovereign credit ratings on Sri Lanka
at 'SD/SD'. At the same time, S&P affirmed its 'CCC-' long-term
and 'C' short-term local currency sovereign ratings. The outlook
on the long-term local currency rating remains negative. S&P also
retained its transfer and convertibility assessment at 'CC'. The
negative outlook on the long-term local currency rating reflects a
high risk to commercial debt repayments over the next six months in
the context of Sri Lanka's economic, external, and fiscal
pressures.
SRI LANKA: World Bank to Provide $500 Million Budget Support
------------------------------------------------------------
Reuters reports that Sri Lanka will enter into an agreement with
the World Bank for $500 million in budgetary support after the
cabinet approved it on June 27, the biggest funding tranche for the
crisis-hit nation since an International Monetary Fund deal in
March.
According to the report, the island nation of 22 million is
emerging out of its worst economic crisis in seven decades and its
economy is expected to shrink 2% this year before returning to
growth next year, following last year's record contraction of
7.8%.
Reuters reported last week that the World Bank is likely to approve
$700 million in budgetary and welfare support for Sri Lanka at its
board meeting on June 28, out of which $200 million will be for
welfare programmes.
The government said on June 27 that funding from the lender will
come in two tranches, Reuters relays.
Sri Lanka, formerly known as Ceylon and officially the Democratic
Socialist Republic of Sri Lanka, is an island country in South
Asia. It lies in the Indian Ocean, southwest of the Bay of Bengal,
and southeast of the Arabian Sea; it is separated from the Indian
subcontinent by the Gulf of Mannar and the Palk Strait. Sri Lanka
shares a maritime border with India and the Maldives. Sri
Jayawardenepura Kotte is its legislative capital, and Colombo is
its largest city and financial centre.
The island nation defaulted on its foreign debt for the first time
in its history in April last year as the worst financial crisis
since independence from Britain in 1948 crushed its economy.
As reported in the Troubled Company Reporter-Asia Pacific, S&P
Global Ratings, on April 26, 2023, affirmed its long-term and
short-term foreign currency sovereign credit ratings on Sri Lanka
at 'SD/SD'. At the same time, S&P affirmed its 'CCC-' long-term
and 'C' short-term local currency sovereign ratings. The outlook
on the long-term local currency rating remains negative. S&P also
retained its transfer and convertibility assessment at 'CC'. The
negative outlook on the long-term local currency rating reflects a
high risk to commercial debt repayments over the next six months in
the context of Sri Lanka's economic, external, and fiscal
pressures.
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T H A I L A N D
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STARK CORPORATION: SEC Warns of Prison Time for Stark Fraudsters
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Bangkok Post reports that members of the management team and others
involved in the fraud surrounding Stark Corporation could face up
to 10 years in prison if found guilty, the Securities and Exchange
Commission (SEC) said on June 26, as it tried to restore confidence
in the Thai capital market.
According to Bangkok Post, the SEC's acting secretary-general
Thawatchai Pittayasophon said that as well as the Stock Exchange of
Thailand (SET) and nine other concerned agencies and associations,
a large number of investors had suffered damage due to their
investment in Stark, while the credibility of the Thai capital
market had been adversely affected.
So far, corporate bondholders with a total principal outstanding
value of nearly THB9.2 billion have been affected through a default
of payments, while individual investors have faced losses as
Stark's market capitalisation has decreased by more than THB37
billion since the end of February.
According to the report, the SEC said Deloitte Touche Tohmatsu
Jaiyos Co audited Stark's financial statements for 2021, and
reported that the company had made a profit of THB2.79 billion. But
PricewaterhouseCoopers ABAS later conducted a special audit that
found the company had net losses of THB5.98 billion for the year,
as well as a THB6.65 billion loss in 2022.
In addition, the special audit also found 202 unusual sales
transactions, amounting to THB8.06 billion and THB3.89 billion in
2021 and 2022, respectively.
Bangkok Post says the maximum penalty the auditors could face under
the SEC and Federation of Accounting Professions authorities is the
revocation of their licence, but if the investigation finds
evidence of corruption, they would be punished under regular laws
pertaining to fraud like everyone else, said Mr. Thawatchai.
"The auditor admits that there are loopholes. If the auditor is
found to have committed an offence as well, they must be guilty of
the same law as other people involved in such a case, with the
maximum penalty of 10 years imprisonment," he noted.
Bangkok Post relates that the SEC has also carried out an
investigation regarding how Stark's corporate bonds were offered to
retail investors as well as institutional and high-net-worth
investors, who were the targeted buyers for the bond issuance,
added Mr Thawathai.
According to Bangkok Post, the SEC and SET also clarified that
there has been no seizure of any related person's assets in this
case so far because the authorities said they "still need to
collect various evidence and a wide range of victims".
"Everyone expects that the SEC will speed up the law enforcement in
this case, but we cannot release details at the moment. With some
actions, we need to cooperate with the Anti-Money Laundering
Office, the Department of Special Investigation and other
agencies," the report quotes Mr. Thawatchai as saying. "Although
the SEC does not have the power to sue on behalf of the
shareholders, we can help to gain cooperation from corporations
with other related agencies [to do so]."
Bangkok Post adds that the Thai Investor Association (TIA) said
1,759 retail investors in the Stark case had registered for class
action legal proceedings totaling THB4.06 billion in damages. TIA
will provide knowledge on class action lawsuits and act as a
mediator to give victims the opportunity to meet and exchange
information.
Association of Investment Management Companies chairwoman Chavinda
Hanratanakool said the association was quick to take action on the
case and mutual funds had not realised losses, the report relays.
Investors can rely on mutual fund responsibility and be confident
that all organisations concerned have worked well together in
verifying the facts of such cases, she said.
Headquartered in Bangkok, Thailand, Stark Corporation Public
Company Limited -- https://www.starkcorporation.com/ -- together
with its subsidiaries, engages in the electric wire and cable
business in Thailand and internationally. It manufactures,
distributes, trades in, and provides service test for wire products
made from copper and aluminum, which are used in electrical
transition, telecommunications, and construction applications. The
company also offers manpower services; human resource management
and recruitment services for the petroleum industry; warehouses
rental services; transportation services; and consultancy services
related to petroleum business. In addition, it engages in the
manufacture of electric wires, cables and non-ferrous; import and
manufacture copper and aluminuium for cable wire; tolling of copper
rod; sales and distribution of accessories for energy and
telecommunication applications; and develop the infrastructure
relating to energy and digital technology, as well as trading of
other materials. The company was formerly known as Siam Inter
Multimedia Public Company Limited and changed its name to Stark
Corporation Public Company Limited in July 2019.
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X X X X X X X X
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[*] Ramesh First Asian and Judge to be Appointed as Pres. of III
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The Supreme Court of Singapore announced that Justice Kannan
Ramesh, Judge of the Appellate Division, has been appointed as the
seventh President of the International Insolvency Institute (III).
Justice Ramesh is the first Asian and the first Judge to be
appointed to the top post in the III. Singapore has, in recent
years, introduced groundbreaking reforms to its insolvency and
restructuring laws to keep pace with the needs of the international
debt restructuring landscape. Justice Ramesh's appointment as the
President of the III will significantly add to Singapore's status
as a restructuring and insolvency centre.
Justice Ramesh has been appointed for a term of two years with
effect from 12th June 2023 at the III's 23rd Annual Conference in
Amsterdam on 10th to 11th June 2023. Established in 2000, the III
is a non-profit, limited-member organisation dedicated to advancing
and promoting insolvency as a respected discipline in the
international field. Its primary objectives include improving
international co-operation in the insolvency area and achieving
greater coordination among nations in multinational business
reorganisations and restructurings. The III's membership is drawn
from the most senior and respected insolvency practitioners, judges
and academics in the world. The III, with its exceptional
membership, international leadership and resources, plays a
valuable and highly significant role in the international
insolvency field.
Justice Ramesh was put forth as a candidate for President by the
nominating committee. The III's Board of Directors approved Justice
Ramesh's appointment as President on 12th June. Justice Ramesh has
been a member of the III since 2006 and, until most recently, one
of its Vice Presidents. Justice Ramesh succeeds outgoing President,
John Martin (Partner, Norton Rose Fulbright Australia).
Justice Ramesh is highly regarded in the international insolvency
community. He played an instrumental role in the establishment of
the Judicial Insolvency Network; a network of 14 judiciaries around
the world. This network was constituted to provide judicial thought
leadership and to facilitate court-to-court communication and
cooperation in cross-border insolvency and restructuring. In
recognition of Justice Ramesh's expertise, leadership, integrity,
professionalism and service to the bankruptcy and insolvency
practice and to their communities, His Honour was invited to become
an International Fellow of the American College of Bankruptcy.
*********
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 ***