/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/230629.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, June 29, 2023, Vol. 26, No. 130 Headlines A U S T R A L I A CBS RHODES: First Creditors' Meeting Set for July 3 DESIGN A SPACE: To Shut Up Shop After 17 Years in Business GINTONICA PTY: First Creditors' Meeting Set for July 3 PORTER DAVIS: One Customer Group Miss Out on Government Support SKIN BOOST: First Creditors' Meeting Set for July 3 SOUTH LAKE: Second Creditors' Meeting Set for July 4 UFC GYM: Debt Snowball to More Than AUD15 Million YELLAND CONSULTING: First Creditors' Meeting Set for July 5 B A N G L A D E S H BANGLADESH: Jica Offers BDT2,273cr Budgetary Support Loan C H I N A CENTRAL CHINA REAL: Moody's Cuts CFR to Ca & Sr. Unsec. Notes to C CHINA EVERGRANDE: Hong Kong Headquarters Remains on Auction Block DALIAN WANDA: Secured Cash to Repay US$275 Million Loan SINO-OCEAN GROUP: Moody's Cuts CFR to Caa1, Alters Outlook to Neg. I N D I A AKAR CREATIONS: CRISIL Keeps D Debt Ratings in Not Cooperating AMRUTHA VARSHINI: CRISIL Keeps D Debt Ratings in Not Cooperating ANMOL STEEL: CRISIL Keeps D Debt Ratings in Not Cooperating ARNAV TECHNOSOFT: CRISIL Keeps D Debt Ratings in Not Cooperating ARSHAD CASHEW: CRISIL Keeps D Debt Ratings in Not Cooperating ASVINI FOUNDATIONS: CRISIL Keeps D Rating in Not Cooperating BHAGABAN MOHAPATRA: CRISIL Keeps D Ratings in Not Cooperating BRILLIANT ALLOYS: CRISIL Keeps D Debt Ratings in Not Cooperating BURGUNDY LIFESTYLE: CRISIL Keeps D Ratings in Not Cooperating BYJU'S: Seeks to Raise US$1 Billion to Sidestep Shareholder Revolt ESSEL GROUP: Insolvency Plea Against Cyquator Dismissed GINGER INFRASTRUCTURE: CRISIL Keeps D Ratings in Not Cooperating GRACE MICRON: CRISIL Keeps D Debt Ratings in Not Cooperating GREENCARE AGROVET: CRISIL Keeps D Debt Ratings in Not Cooperating INTOUCH TRADING: CRISIL Keeps D Debt Ratings in Not Cooperating M. M. AUTOMOBILES: CRISIL Keeps D Debt Ratings in Not Cooperating MAROLI NH: Ind-Ra Hikes Bank Loan Rating to BB+, Outlook Stable MARS PLYWOOD: CRISIL Keeps D Debt Ratings in Not Cooperating MATHURA DEVELOPER: CRISIL Keeps D Debt Ratings in Not Cooperating MOHANLAL JEWELLERS: Ind-Ra Gives BB+ Loan Rating, Outlook Stable NATURAL PRODUCTS: CRISIL Keeps C Debt Ratings in Not Cooperating NETWORK TRADELINK: CRISIL Keeps D Debt Ratings in Not Cooperating NILKANTH COTTON: CRISIL Keeps D Debt Ratings in Not Cooperating NIZAMABAD MUNICIPAL: ICRA Downgrades Issuer Rating to B+ NMS ENTERPRISES: CRISIL Keeps D Debt Ratings in Not Cooperating NRV YARNS: Ind-Ra Assigns BB- Bank Loan Rating, Outlook Stable PALA DIOCESAN: Ind-Ra Affirms BB- Bank Loan Rating PREMIER EXPORTS: Ind-Ra Moves BB Issuer Rating in Non-Cooperating RAKESH TEXTILES: CRISIL Keeps B Debt Ratings in Not Cooperating RBD INTERNATIONAL: CRISIL Keeps D Debt Ratings in Not Cooperating RELIGARE FINVEST: Ind-Ra Affirms 'D' Long Term Issuer Rating RUDRA BUILDWELL: Insolvency Resolution Process Case Summary RUPSHA FISH: Ind-Ra Gives BB+ LT Issuer Rating, Outlook Stable S.N.R. DHALL: CRISIL Keeps B Debt Ratings in Not Cooperating SAISHA ENTERPRISES: CRISIL Keeps D Ratings in Not Cooperating SAM INDUSTRIAL: CRISIL Keeps D Debt Ratings in Not Cooperating SARAS HOTELS: CRISIL Keeps D Debt Rating in Not Cooperating SEFL DA II: Ind-Ra Cuts Long Term Issuer Rating to 'D' SEFL DA III: Ind-Ra Cuts Long Term Issuer Rating to 'D' SHAH STEEL: CRISIL Keeps D Debt Ratings in Not Cooperating TITAGARH FIREMA: ICRA Keeps B+ Debt Ratings in Not Cooperating VAMSI PHARMA: ICRA Keeps D Debt Ratings in Not Cooperating VKAAO ENTERTAINMENT: Voluntary Liquidation Process Case Summary WEST INDIA POWER: Ind-Ra Affirms & Withdraws BB+ LT Issuer Rating N E W Z E A L A N D A & B CONTRACTORS: Court to Hear Wind-Up Petition on July 13 J P HOWCROFT: Creditors' Proofs of Debt Due on July 28 MOUNTAIN VALLEY: Court to Hear Wind-Up Petition on July 20 SUITEBOX LIMITED: BDO Tauranga Appointed as Liquidator TOUGH FRANK: Creditors' Proofs of Debt Due on July 21 [*] NEW ZEALAND: Liquidations Rising as Economy Worsens S I N G A P O R E BOEING ASIA: Creditors' Proofs of Debt Due on on July 26 FAR EAST: Creditors' Meeting Set for July 12 LOMBARD INTERNATIONAL: Creditors' Proofs of Debt Due on July 28 MECH-PRODUCT SUPPLIES: Commences Wind-Up Proceedings REVBUILD ASIA: Court to Hear Wind-Up Petition on July 14 - - - - - ================= A U S T R A L I A ================= CBS RHODES: First Creditors' Meeting Set for July 3 --------------------------------------------------- A first meeting of the creditors in the proceedings of CBS Rhodes Pty Ltd, CBS Group Investments Pty Ltd, and CBS Leasing Pty Limited will be held on July 3, 2023, at 10:30 a.m. at the offices of Worrells at 160 Brisbane Street in Ipswich and via Microsoft Teams video conferencing. Adam Francis Ward of Worrells was appointed as administrator of the company on June 21, 2023. DESIGN A SPACE: To Shut Up Shop After 17 Years in Business ---------------------------------------------------------- SmartCompany reports that Melbourne retailer Design A Space will close its stores next month, calling time on a retail model which allowed rural and regional small businesses the chance to stock their products in the city centre. Founded by husband and wife team Chris and Bec Lutz in 2006, Design A Space rents physical floor space to independent brands hoping to showcase their goods to a metropolitan customer base. The venture grew to three locations across the Melbourne CBD, Fitzroy, and Windsor, and has stocked goods from more than 170 small businesses. Design A Space bills its offering as unique among retailers, given the ever-changing range of homemade jewellery, fashion, artwork, and homewares stocked by partner businesses. But the same economic challenges which are hammering traditional stores forced Design A Space to shut its long-running Windsor location in April, the report notes. Now, its Melbourne CBD and Fitzroy locations will cease trading on July 15, SmartCompany discloses. "We have fought hard to keep the stores alive," the business announced on June 24. "However, with the rise of costs in every aspect of our business it is no longer profitable to remain open. "The last 3 years have been extremely challenging for us as well as our incredible designers and with the current financial climate, it is proving very difficult. "We know so many of you have put your support behind Design A Space and for this, we are very grateful." According to SmartCompany, co-founder Chris Lutz said the business successfully battled through COVID-19 restrictions, but successive interest rate hikes by the Reserve Bank of Australia, designed to curb discretionary purchases, have now hampered consumer spending. Elevating the costs faced by partner brands did not make sense so long as underlying consumer spending remains low, he added. Calling time on the enterprise now allows Design A Space to "end the way we want to end", he said, allowing it to pay out suppliers and honour remaining staff entitlements. The business is able to "hold its head high and sort of say, ‘Look, we've tried our best, we've had a great 17 years, but the climate is just extremely tough," SmartCompany quotes Mr. Lutz as saying. Small businesses which have worked with Design A Space are mourning the loss of what they see as instrumental to reaching new, curious, and highly engaged customers. Tracy Keating, founder of Leaf Candle Co., told SmartCompany that the two years of stocking her products with Design A Space proved "instrumental in establishing our brand and exposing us to a large audience of both retail and wholesale customers". As the cost of doing business continues to rise, Keating said it was important for consumers to continue supporting small and independent traders. "I've seen far too many far too many 'closing down' posts on Instagram over the past month or so and it breaks my heart a little bit every time I see another small business have to close," she said. Other small businesses to have stocked their products at Design A Space have shared words of support online, SmartCompany says. GINTONICA PTY: First Creditors' Meeting Set for July 3 ------------------------------------------------------ A first meeting of the creditors in the proceedings of Gintonica Pty Ltd will be held on July 3, 2023, at 11:00 a.m. via teleconference only. David Ross of I & R Advisory was appointed as administrator of the company on June 21, 2023. PORTER DAVIS: One Customer Group Miss Out on Government Support --------------------------------------------------------------- News.com.au reports that customers of Porter Davis Homes will receive their money back as part of a generous government bailout - except for one group who have been left out. In March, Australia's 13th largest home builder Porter Davis Homes went into liquidation, placing 1,700 projects and another 779 empty blocks of land in jeopardy across Victoria and Queensland. It later emerged that 560 customers had paid tens of thousands in deposit money but Porter Davis had never taken out building insurance, leaving them with no automatic payout from the insurer after the company went under, news.com.au relates. Yet in an unprecedented step, Victorian Premier Daniel Andrews agreed to refund them their lost money in a AUD15 million government bailout announced a month later, in April. But for one customer, Max (name withheld over privacy concerns), he is not eligible, leaving him AUD23,000 out of pocket. The issue lies in the fact the Melbourne dad paid for a tender and was in the final stages of signing an official contract when Porter Davis collapsed. This means he never received a contract number and is therefore ineligible for government support. "I am pretty much shattered, there was a lot of emotional investment," Max, 46, told news.com.au. "As a single income earner, it's my responsibility to provide for my family." As part of the process, Max initially paid AUD2,000 to Porter Davis as an expression, then three per cent of the estimated build price to put together the tender. For Max, with his five bedroom, four bathroom house slated to cost around the AUD700,000 mark, his tender price was steep. He paid AUD21,000 to Porter Davis, money that he doesn't expect to see again. The forklift driver and dad-of-three was in the final stages of negotiating an official contract when the company suddenly appointed liquidators. News.com.au understands he is among dozens of Porter Davis customers who paid tenders but never signed a contract, rendering the government's help package just out of reach. A Victorian government spokesperson indicated that anyone in that situation are considered "separate" to the AUD15 million bailout, but wanted their information for a wide-ranging survey into the pitfalls of the building industry in the state, news.com.au relates. "Porter Davis customers who paid a tender deposit are asked to provide information via the survey so that the government can consider their case," the spokesperson told news.com.au. "This is separate to the scheme previously announced for Porter Davis customers who signed their contracts and paid their deposits but where Porter Davis did not take out Domestic Building Insurance (DBI), in breach of their obligations." About PDH Porter Davis Homes Group was Australia's 13th largest home builder. On March 31, 2023, Said Jahani, Matt Byrnes and Cameron Crichton of Grant Thornton Australia were appointed liquidators of 14 companies in the Porter Davis Homes Group. The liquidators’ appointment is over all PDH Group operating and employing companies in Victoria and Queensland, except Englehart Homes. Englehart Homes, which was acquired by the Group in late 2021, is not subject to the appointment and is continuing to operate in its own right. SKIN BOOST: First Creditors' Meeting Set for July 3 --------------------------------------------------- A first meeting of the creditors in the proceedings of Skin Boost Clinics Australia Pty Ltd, SGB Fabrications Pty Ltd, and SGB Construction & Fitout Pty Ltd will be held on July 3, 2023, at 10:00 a.m., 10:30 a.m., and 11:00 a.m. respectively, at Wharf Lane at Level 20, 171 Sussex Street in Sydney and via virtual meeting technology. Jason Tang and Ozem Kassem of Cor Cordis were appointed as administrators of the company on June 21, 2023. SOUTH LAKE: Second Creditors' Meeting Set for July 4 ---------------------------------------------------- A second meeting of creditors in the proceedings of South Lake Developments Limited has been set for July 4, 2023 at 11:00 a.m. via Zoom virtual meeting only. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by July 3, 2023 at 4:00 p.m. Danny Vrkic and Daniel O'Brien of DVRM Sydney were appointed as administrators of the company on May 29, 2023. UFC GYM: Debt Snowball to More Than AUD15 Million ------------------------------------------------- News.com.au reports that an embattled Australian gym chain under external administration has seen its debt snowball to more than AUD15 million. On June 26, news.com.au revealed that the parent companies behind UFC Gym Australia had collapsed into administration in late May following a damning court judgment. Late last month, on May 23, Ultimate Franchising Group Pty Ltd and Ultimate Franchising Group Properties Pty Ltd all went into voluntary administration. These companies held the master franchise agreement for UFC Gym Australia and New Zealand, a mixed martial arts gym which at its peak had more than 10 fitness centres in Sydney, Melbourne, Perth and the Gold Coast, news.com.au relays. According to the report, the administration came a day after two companies behind UFC Gym were ordered to pay more than AUD5 million to three franchisees when a court found the company and its directors had "engaged in misleading and deceptive conduct" during the process of selling said franchises to them. An administrator's report lodged with ASIC and obtained by news.com.au shows that according to the appointed administrators, Rajiv Goyal & Christopher Johnson of insolvency firm Wexted Advisors, Ultimate Franchising Group Pty Ltd owes AUD15,654,000 to unsecured creditors. News.com.au relates that a UFC Gym Australia spokesperson said the company had appointed administrators because it was the "best option available" to stabilise its financial situation and added it was "considering a range of options" following the court judgment. One of the directors, Samer Husseini, is already seeking an appeal of the court judgment. Of that AUD15 million debt, as well as owing money to the franchisees, AUD160,000 is owed to the NSW department of revenue. There is a total of 62 creditors, according to proof of debt forms lodged with the administrators, news.com.au relays. An additional AUD42,000 is owed to 10 employees for unpaid wages. The Commonwealth Bank remains a secured creditor for a AUD670,000 debt. UFC Gym Australia "may have been insolvent from as early as March 2023," the administrators said in their report filed with the corporate regulator, news.com.au reports. They added that early May after the court orders were delivered was a more "definitive date" of when the company likely started to trade insolvent. The company "remains insolvent, so it is not appropriate for control of the Group to be handed back to the director," they added. The gym chain had reported a loss on trading in March, with the company experiencing a AUD100,000 deficit for the financial year, news.com.au adds. YELLAND CONSULTING: First Creditors' Meeting Set for July 5 ----------------------------------------------------------- A first meeting of the creditors in the proceedings of Yelland Consulting Pty Limited will be held on July 5, 2023, at 10:30 a.m. at the offices of SV Partners at 22 Market Street in Brisbane. David Michael Stimpson and Terrence John Rose of SV Partners were appointed as administrators of the company on June 23, 2023. =================== B A N G L A D E S H =================== BANGLADESH: Jica Offers BDT2,273cr Budgetary Support Loan --------------------------------------------------------- The Daily Star reports that Japan International Cooperation Agency (Jica) will provide an Official Development Assistance loan of BDT2,273 crore (equivalent to JPY3,000 crore) as budgetary support for strengthening public financial management. Ichiguchi Tomohide, chief representative of JICA Bangladesh, and Sharifa Khan, secretary to Economic Relations Division, signed an agreement in this regard at National Economic Council in Dhaka yesterday, according to a press release. The Daily Star says the loan comes with an annual interest rate of 1.6 per cent along a 30-year repayment period, including a 10-year grace period. Aimed toward the economic recovery of Bangladesh, it is to be disbursed quickly, it said. It said the development policy program for this loan would support strengthening public financial management capacity through increasing revenue and improving expenditure management of the Bangladesh government. "The signing of this loan agreement is crucial to support economic recovery and sustainable and inclusive growth for the people of Bangladesh," the report quotes Mr. Tomohide as saying. "The fund will help in meeting the government's budgetary needs, prop up foreign exchange reserves and give impetus to the reform plans," he said. Iwama Kiminori, Japanese ambassador to Bangladesh, was present at the event. As reported in the Troubled Company Reporter-Asia Pacific in early June 2023, Moody's Investors Service has downgraded the government of Bangladesh's long term issuer and senior unsecured ratings to B1 from Ba3 and affirmed short term issuer ratings at Not Prime. This rating action concludes the review for downgrade initiated on December 9, 2022. The rating outlook is stable. ========= C H I N A ========= CENTRAL CHINA REAL: Moody's Cuts CFR to Ca & Sr. Unsec. Notes to C ------------------------------------------------------------------ Moody's Investors Service has downgraded Central China Real Estate Limited's (CCRE) corporate family rating to Ca from Caa2, and the company's senior unsecured rating to C from Caa3. The rating outlook remains negative. "The downgrade and negative outlook reflects Moody's expectation of weak recovery prospects for CCRE, following the company's interest payment default on its USD bond," says Daniel Zhou, a Moody's Analyst. RATINGS RATIONALE CCRE announced on June 23, 2023 that it was not able to pay interest on an outstanding offshore bond before the expiration of the grace period [1]. CCRE also indicated in the announcement that it would suspend the servicing of its offshore debt. These developments reflect the company's weak liquidity and constrained financial flexibility, and could weaken the recovery prospects for its creditors. The interest payment default could also trigger a cross default and accelerate the repayment of the company's other debt obligations. The company would have to rely on asset disposals or other fundraising plans for debt servicing. However, there are high uncertainties associated with such fundraising activities. CCRE's senior unsecured bond rating is one notch lower than its CFR because of the risk of structural subordination. This subordination risk reflects the fact that most of CCRE's claims are at the operating subsidiaries and have priority over claims at the holding company in a bankruptcy scenario. In addition, the holding company lacks significant mitigating factors for structural subordination. As a result, the expected recovery rate for claims at the holding company will be lower. In terms of environmental, social and governance (ESG) factors, Moody's has considered CCRE's elevated financial risk associated with debt restructuring as it defaults on its interest payment and suspends offshore debt servicing. The company's provision of financial guarantees to related parties will also increase its contingent liabilities and the risk of potential fund leakages. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's could further downgrade CCRE's CFR if the recovery prospects for its creditors deteriorate. An upgrade is unlikely, given the negative outlook. However, positive rating momentum could develop if CCRE satisfactorily resolves its defaulted position, and materially improves its liquidity and the recovery prospect of its creditors. The principal methodology used in these ratings was Homebuilding and Property Development published in October 2022. Founded in 1992, CCRE is a leading property developer in Henan province in China. As of December 31, 2022, the company's land bank totaled 46.98 million square meters in gross floor area. CHINA EVERGRANDE: Hong Kong Headquarters Remains on Auction Block ----------------------------------------------------------------- South China Morning Post reports that China Evergrande Group's Hong Kong headquarters building - once a US$1.6 billion jewel in the developer's crown - remains without a buyer after nine months on the auction block, despite speculation that a sale was imminent after an exchange filing revealed a name change for the tower. Rumours of a sale flared up after Yunfeng Financial notified the Hong Kong stock exchange on June 23 that the 27-storey building, on Gloucester Road in Wan Chai, would change names from China Evergrande Centre to YF Life Centre, the Post relays. YF Life Insurance International is a member of publicly listed Yunfeng Financial Group, whose major shareholders include Yunfeng Financial Holdings and Massachusetts Mutual Life Insurance Company. Yunfeng is backed by Jack Ma, the co-founder of Alibaba Group Holding, which owns the Post. China Evergrande Group's creditors put the building on the market in September to recover their debt as the cash-strapped developer struggled to restructure about US$300 billion of liabilities, the Post recalls. At the time, property experts said the asset would fetch at least HK$10.7 billion (US$1.36 billion). The building has not been sold, Savills, the property agent appointed by the property's receivers as the sole agent for the sale, said when contacted by the Post on June 26. It was "just simply changing the building name to the anchor tenant", said Godfrey Cheng, deputy senior director at Savills Hong Kong, the Post relays. No money was involved in the name change, he added. YF Life leases about 70,000 square feet in the building, which has a gross floor area of about 345,423 sq ft, including a lobby, shops and office floors with a typical size of 12,000 to 14,000 sq ft, as well as 55 parking spaces. According to the Post, Savills was appointed as the sole agent by the receivers from Alvarez and Marsal for the tender, but failed to garner any bids that met the requirements by the time the tender closed in late October. Evergrande in late May said its overdue debts, excluding onshore and offshore bonds, amounted to around CNY272.5 billion (US$37.68 billion) as of April, according to a Shenzhen Stock Exchange filing concerning its major litigation and failure to repay due debts. Its overdue commercial bills amounted to around CNY246 billion. On the legal front, Evergrande is also facing 1,426 unresolved lawsuits involving a total of CNY349.6 billion as of April, the Post discloses citing the filing. The Post says the developer was named a dishonest debtor in six cases in April by courts around the country for failing to "fulfil the obligations determined by effective legal documents despite its capability". It was also ordered to pay out CNY2.92 billion in 130 new enforcement notices. Analysts said it is not easy to find a buyer for the building, as the reopening of the border with mainland China has not yet driven significant office-leasing activity amid a glut of office space, the Post adds. About China Evergrande China Evergrande Group is an integrated residential property developer. The Company, through its subsidiaries, operates in property development, investment, management, finance, internet, health, culture, and tourism markets. Evergrande had CNY1.97 trillion (US$311 billion) of liabilities at the end of June 2021. Once China's biggest developer by sales, Evergrande fell into distress as cash dried up and the group overstretched itself on borrowings and ventures into car manufacturing. Evergrande hired outside financial advisers Houlihan Lokey and Admiralty Harbour Capital in September 2021 to engage with creditors soon after it ran into a liquidity squeeze. It has since worked with more advisers in the past two months by turning to China International Capital Corp, BOCI Asia and Zhong Lun Law Firm on its debt workout plan. As reported in the Troubled Company Reporter-Asia Pacific in October 2022, Moody's Investors Service has withdrawn China Evergrande Group's (Evergrande) corporate family rating and senior unsecured ratings, the CFRs of Hengda Real Estate Group Company Limited and Tianji Holding Limited, and Scenery Journey Limited's backed senior unsecured ratings. DALIAN WANDA: Secured Cash to Repay US$275 Million Loan ------------------------------------------------------- Bloomberg News reports that Dalian Wanda has secured enough cash to repay a US$275 million (HK$2.15 billion) private-debt facility that matures June 28, according to people familiar with the matter. Bloomberg relates that the company is finalizing a new 364-day debt facility of slightly less than US$275 million arranged by the same bank as the previous loan - Credit Suisse Group - said one of the people. The fresh financing will be backed by Wanda's equity in Hollywood film studio Legendary Entertainment, the person added. According to Bloomberg, the group has been at the center of a debt-repayment crisis, with its dollar bonds plunging over the past several months. Founder Wang Jianlin has been negotiating with regulators and Wanda strategic investors on potential support while lieutenants crisscrossed the country to push for debt extensions, Bloomberg News reported two weeks ago. Wanda notes climbed on June 26, the report notes. A bond that is due July 23 jumped 4.3 cents to 89.9 cents on the dollar, according to data compiled by Bloomberg, on pace for its largest gain in nearly a month. About Dalian Wanda Dalian Wanda Commercial Management Group Co., Ltd. operates as a commercial property developer, owner, and operator. The Company develops and manages mixed-use property projects including retail, office, hotel, residential, restaurant, entertainment, and other projects. Dalian Wanda Commercial Management Group conducts businesses in China. As reported in the Troubled Company Reporter-Asia Pacific in early May 2023, Moody's Investors Service has downgraded Dalian Wanda Commercial Management Group Co., Ltd.'s (DWCM) corporate family rating to Ba2 from Ba1. The TCR-AP reported on June 7, 2023, S&P Global Ratings lowered its long-term issuer credit rating on China-based Dalian Wanda Commercial Management Group Co. Ltd. (Wanda Commercial) to 'BB' from 'BB+'. At the same time, S&P lowered the long-term issuer credit rating on Wanda Commercial Properties (Hong Kong) Co. Ltd. (Wanda HK) and the long-term issue rating on the senior unsecured notes Wanda HK guarantees to 'BB-' from 'BB'. All the ratings remain on CreditWatch, where they were placed with negative implications on April 28, 2023. S&P said, "We expect to resolve the CreditWatch once we have details that allow us to assess the likelihood of the listing of Zhuhai Wanda and Wanda Commercial's other back-up plans. We will also assess the credit profile, especially liquidity position, of Wanda Commercial and DWG. "We downgraded Wanda Commercial due to its parent's weakening liquidity. We see heightened risks from DWG's narrowing financing channels due to extended delay in Zhuhai Wanda's IPO. Weaker property sales than we expected for Wanda Properties Group Co. Ltd. (Wanda Properties), a sister company of Wanda Commercial, have worsened the situation for the group." The liquidity of Dalian Wanda Group (DWG), the parent of China-based Dalian Wanda Commercial Management Group Co. Ltd. (Wanda Commercial), has weakened. This is amid rising uncertainty on the listing of Zhuhai Wanda Commercial Management Group Co. Ltd. (Zhuhai Wanda, a subsidiary of Wanda Commercial) and headwinds for the property development business. SINO-OCEAN GROUP: Moody's Cuts CFR to Caa1, Alters Outlook to Neg. ------------------------------------------------------------------ Moody's Investors Service has downgraded Sino-Ocean Group Holding Limited's corporate family rating to Caa1 from B3. At the same time, Moody's has downgraded (1) to Caa1 from B3, the backed senior unsecured ratings on the bonds issued by Sino-Ocean Land Treasure Finance I Limited, Sino-Ocean Land Treasure Finance II Limited, and Sino-Ocean Land Treasure IV Limited and guaranteed by Sino-Ocean Group, and (2) to Caa3 from Caa2, the subordinated, guaranteed perpetual capital securities issued by Sino-Ocean Land Treasure III Limited and guaranteed on a subordinated basis by Sino-Ocean Group. Moody's has changed all the outlooks to negative from ratings under review. This concludes the review for downgrade initiated on April 4, 2023. "The downgrades reflect Sino-Ocean Group's heightened refinancing risks in view of its weak liquidity, declining sales and profit margins, as well as sizable refinancing needs," says Cedric Lai, a Moody's Vice President and Senior Analyst. "The negative outlook reflects the uncertainties over the company's ability to address its refinancing needs given its weak financial standing and uncertain funding access," adds Lai. RATINGS RATIONALE Moody's expects Sino-Ocean Group's liquidity to remain weak if the company is unable to raise new external funding. The company has a sizeable amount of maturing debt over the next 12-18 months, including a USD700 million offshore bond due in July 2024. Sino-Ocean Group's cash balance significantly dropped to RMB9.4 billion as of the end of 2022 from RMB19.6 billion as of the end June 2022, due to its lower sales and repayment of some maturing debt. While the company has plans to sell some of its investment properties to meet its debt repayments, such asset sales are uncertain in current market conditions. Sino-Ocean Group's CFR also considers its weak credit metrics, a result of its deteriorated operations and tighter profitability. Moody's expects Sino-Ocean Group's contracted sales to fall 15% year on year to around RMB85 billion in 2023 amid a smaller land bank. The company has also offered price discounts to support its contracted sales, which will pressure its profit margins. As such, Moody's expects Sino-Ocean Group's EBIT/interest coverage to stay at a weak level of 0.9x-1.0x over the next 12-18 months from 1.0x in 2022, while its debt/EBITDA will stay high at 17x-19x over the same period, versus 18.6x in 2022. Sino-Ocean Group's Caa1 CFR incorporates a one-notch rating uplift from Moody's expectation of support for the company from its 29.59% shareholder, China Life Insurance Co Ltd, in times of need. This view has factored in China Life's willingness and ability to support Sino-Ocean Group. The latter is indicated by China Life's A1 insurance financial strength rating (IFSR) and track record of providing support to Sino-Ocean Group through subscribing to the company's bond issuance. The recent change in board of directors indicated China Life's increased supervision in the company's operation and management. The backed senior unsecured bond ratings are not affected by subordination to claims at the operating company level. Despite Sino-Ocean Group's status as a holding company, Moody's expects support from China Life to Sino-Ocean Group to flow through the holding company rather than directly to its main operating companies, mitigating potential differences in expected losses that could arise from structural subordination. In terms of environmental, social and governance (ESG) factors, Moody's has considered the company's weak liquidity management, weak corporate governance practices and inadequate information disclosure, as reflected in the auditor's qualified opinion on Sino-Ocean Group's 2022 financial statement. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade of Sino-Ocean Group's ratings is unlikely over the next 12 months, given the negative outlook. However, positive rating momentum could emerge if Sino-Ocean Group improves its liquidity and access to funding; repays its maturing debt without sacrificing its balance sheet liquidity; and strengthens its current credit metrics through the next 12-18 months. On the other hand, Moody's could downgrade Sino-Ocean Group's ratings if the company's default and liquidity risks heightened. This could be a result of a material deterioration in the company's sales or its access to funding. The agency could also downgrade Sino-Ocean Group's ratings if it lowers its assessment of support from China Life. The principal methodology used in these ratings was Homebuilding and Property Development published in October 2022. Sino-Ocean Group Holding Limited is a leading property developer in China. The company focuses on developing mid- to high-end residential properties, office premises and retail properties. As of the end 2022, it had a land bank of about 43.0 million square meters across 63 cities mainly in China. ========= I N D I A ========= AKAR CREATIONS: CRISIL Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings the ratings on bank facilities of Akar Creations Private Limited (ACPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Drop Line 25 CRISIL D (Issuer Not Overdraft Facility Cooperating) Loan Against 3.5 CRISIL D (Issuer Not Property Cooperating) Mortgage Loan 10 CRISIL D (Issuer Not Facility Cooperating) Overdraft Facility 20 CRISIL D (Issuer Not Cooperating) Proposed Long Term 4.2 CRISIL D (Issuer Not Bank Loan Facility Cooperating) Term Loan 2.3 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with ACPL for obtaining information through letter and email dated March 25, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of ACPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on ACPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of ACPL continues to be 'CRISIL D Issuer Not Cooperating'. ACPL, incorporated in 1993 by the Borkar family, develops real estate projects in Goa and Mumbai. The company's key promoters are Mr Avinash Borkar and Mr. Chinmai Borkar. AMRUTHA VARSHINI: CRISIL Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Amrutha Varshini Dairy Farms Private Limited (AVDF) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 12.5 CRISIL D (Issuer Not Cooperating) Long Term Loan 4.5 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with AVDF for obtaining information through letter and email dated March 31, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of AVDF, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on AVDF is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of AVDF continues to be 'CRISIL D Issuer Not Cooperating'. AVDF was set up in 2001 by Mr. A V S N Rao and his family members; it is a part of the Agri Gold group. The company, based in Hyderabad, processes and sells milk and milk products. ANMOL STEEL: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------- CRISIL Ratings the ratings on bank facilities of Anmol Steel Processors Private Limited (ASPPL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL D (Issuer Not Cooperating) Channel Financing 10 CRISIL D (Issuer Not Cooperating) Channel Financing 40 CRISIL D (Issuer Not Cooperating) Letter of Credit 75 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with ASPPL for obtaining information through letter and email dated March 25, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of ASPPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on ASPPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of ASPPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. ASPPL, incorporated in 1994, is promoted and managed by Mr Dinesh Shah and his sons, Mr Amar Shah and Mr Paras Shah. The company processes and trades in hot- and cold-rolled coils, galvanised coils, and other steel products. It is an authorised distributor for JSW Steel Ltd, which accounts for 40% of total purchases. Its processing facility is at Navi Mumbai, Maharashtra. ARNAV TECHNOSOFT: CRISIL Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings the ratings on bank facilities of Arnav Technosoft Private Limited (ATPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term 2.47 CRISIL D (Issuer Not Bank Loan Facility Cooperating) Term Loan 11.03 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with ATPL for obtaining information through letter and email dated March 25, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of ATPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on ATPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of ATPL continues to be 'CRISIL D Issuer Not Cooperating'. Incorporated in 2007, ATPL is a real estate developer and is executing its maiden project in Noida (Uttar Pradesh). The project involves construction and leasing of a corporate office building. ATPL is part of the SDS group which is engaged into real estate construction spanning group housing projects, integrated townships, commercial space, and information technology park in Noida and Greater Noida regions of Uttar Pradesh. The group is headed by Mr Deepak Bansal and Mrs Anshul Bansal. ARSHAD CASHEW: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Arshad Cashew Industry (ACI) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4.95 CRISIL D (Issuer Not Cooperating) Proposed Long Term 5.55 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with ACI for obtaining information through letter and email dated March 25, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of ACI, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on ACI is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of ACI continues to be 'CRISIL D Issuer Not Cooperating'. ACI is a partnership firm of Mr Ruknuddin Mohammad Ibrahim and his wife Ms Nadima Misbah. It was started as a proprietorship concern in December 2011 and was reconstituted as a partnership firm in October 2015. The firm processes and sells cashew kernels. ASVINI FOUNDATIONS: CRISIL Keeps D Rating in Not Cooperating ------------------------------------------------------------ CRISIL Ratings the rating on bank facilities of Asvini Foundations Private Limited (Asvini) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 15 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with Asvini for obtaining information through letter and email dated March 25, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of Asvini, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on Asvini is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of Asvini continues to be 'CRISIL D Issuer Not Cooperating'. Set up as a private limited company in 2006, Asvini is involved in the construction and sale of residential apartments in Tamil Nadu. The firm is promoted by Mr. Sivagurunathan along with his friends and family. BHAGABAN MOHAPATRA: CRISIL Keeps D Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Bhagaban Mohapatra Constructions and Engineers Private Limited (BMCEPL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 3 CRISIL D (Issuer Not Cooperating) Letter Of Guarantee 30 CRISIL D (Issuer Not Cooperating) Long Term Loan 0.47 CRISIL D (Issuer Not Cooperating) Proposed Cash 0.13 CRISIL D (Issuer Not Credit Limit Cooperating) CRISIL Ratings has been consistently following up with BMCEPL for obtaining information through letter and email dated March 25, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of BMCEPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on BMCEPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of BMCEPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Incorporated in 2001, BMCEPL is promoted by Paradeep, Orissa based Mr. Bhagaban Mohapatra. The company undertakes execution of civil and mechanical construction projects, with a primary focus on piling activities. The company also undertakes construction of industrial, commercial and institutional buildings. BRILLIANT ALLOYS: CRISIL Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Brilliant Alloys Private Limited (BAPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 12 CRISIL D (Issuer Not Cooperating) Proposed Long Term 0.16 CRISIL D (Issuer Not Bank Loan Facility Cooperating) Rupee Term Loan 12.75 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with BAPL for obtaining information through letter and email dated March 25, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of BAPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on BAPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of BAPL continues to be 'CRISIL D Issuer Not Cooperating'. Incorporated in 2011 and promoted by Mr. R Indrajit, BAPL manufactures mild steel billets at its facility in Thirvannamalai Tamil Nadu. BURGUNDY LIFESTYLE: CRISIL Keeps D Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Burgundy Lifestyle Private Limited (Burgundy) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5.2 CRISIL D (Issuer Not Cooperating) Letter of Credit 6.25 CRISIL D (Issuer Not Cooperating) Packing Credit 3.45 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with Burgundy for obtaining information through letter and email dated March 25, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of Burgundy, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on Burgundy is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of Burgundy continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Burgundy's production facilities were initially set up by Prime Textiles Ltd in Tiruppur (Tamil Nadu). In 2008, the entire production facility was acquired by the Kolkata-based Jhawar group. Burgundy manufactures high-end T-shirts and innerwear under various brands, including Burgundy. BYJU'S: Seeks to Raise US$1 Billion to Sidestep Shareholder Revolt ------------------------------------------------------------------ Bloomberg News reports that BYJU'S is in advanced talks with prospective new shareholders for a US$1 billion fundraising round, seeking to stave off attempts by some investors to clip founder Byju Raveendran's control over the beleaguered tech startup. Bloomberg relates that the Indian firm is offering sweeteners, including preferential treatment in the case of liquidation, to win over new backers, people familiar with the matter said, asking not to be named as the information isn't public. None of its existing shareholders has a so-called liquidation preference, the people said. Byju's, which has been trying to raise fresh funds for months, seeks to close a round within two weeks, they said. It's unclear whether Raveendran will ultimately secure a capital influx, a critical step in a broader campaign to retain control of a startup once deemed India's most valuable at US$22 billion, Bloomberg says. Powerful shareholders and creditors began seeking to dilute his influence after the post-Covid online education market slowed, and the startup missed deadlines for filing results and an interest payment on a US$1.2 billion loan. According to Bloomberg, the representatives of three influential backers - Peak XV, Prosus NV and the Chan-Zuckerberg Initiative - quit the board in the same week Deloitte Haskins & Sells resigned as Byju's auditor, underscoring a rapid erosion of trust within the company's ranks. Bloomberg relates that the company has been warding off demands from a few investors to strip Raveendran of some of his privileges given through a shareholders' agreement, including a right of first refusal on investors seeking to sell their stake, the people said. The investors were mooting options, including merging some pieces of Byju's into competitors in equity deals, according to the people. Meanwhile, the founder has the backing of some of the startup's existing shareholders, which, together with Raveendran, control a large voting bloc, Bloomberg reports. The opposing shareholders were temporarily mollified after Raveendran and chief financial officer Ajay Goel hosted a call over the weekend to assure investors that the fundraising is on track and that long-delayed financial accounts will be finalised soon, the people said. However, prolonged delays in completing the promised equity raising could threaten the founder's control over the firm, they said, Bloomberg relays. Bloomberg notes that Byju's and its lenders are fighting over the US$1.2 billion term loan after the firm breached terms of its debt agreement. Early this month, it elected to skip an interest payment on the loan and filed a lawsuit in New York alleging a group of investors manufactured a fake debt crisis to extort money from the firm. Bloomberg says Indian regulators are also scrutinising the company following a delay in submitting financial statements and the auditor resignation. Raveendran is planning to reconstitute the board only after the fundraising has been completed, as the new investors would likely take some of the vacant seats, the people said. Byju's has about US$900 million in cash reserves and plans to use some of the potential fresh funds to pay down the disputed US$1.2 billion term loan, one of the people said. The loan is being quoted at 63.8 cents on the dollar, Bloomberg-compiled data show. A level below 70 is generally considered distressed. Based in Bengaluru, Karnataka, India, Byju's operates an online learning platform intended to deliver engaging and accessible education. The company's platform makes use of original content, watch-and-learn videos, animations, and interactive simulations that make learning contextual, visual, and practical, enabling students to receive a personalized educational experience. ESSEL GROUP: Insolvency Plea Against Cyquator Dismissed ------------------------------------------------------- The Economic Times reports that the National Company Law Tribunal (NCLT) has dismissed IDBI Trusteeship Services' petition seeking Corporate Insolvency Resolution Process (CIRP) proceedings against Essel Group entity Cyquator Media Services for default in payment. In its petition against Cyquator Media, IDBI Trusteeship had invoked the provisions of Section 7 Insolvency and Bankruptcy Code read with Rule 4 of Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016 for resolution of financial debt worth INR599 crore, ET relates. In their order, the NCLT bench of Technical Member Anuradha Sanjay Bhatia and Judicial Member Kuldip Kumar Kareer noted that the contentions raised on behalf of IDBI Trusteeship are devoid of any force or substance. "We are of the considered view that in this case, the default took place in the month of June 2020 which is clearly covered under the period excluded under Section 10A of the Code. That being so, the instant Petition cannot be maintained being barred by Section 10A of the Code and is, therefore, dismissed," the order, as cited by ET, read. As per the provisions of Section 10A of the Insolvency and Bankruptcy Code, no application for initiation of corporate insolvency resolution process can be filed in respect of a default that has occurred on or after March 25, 2020 till Sept. 24, 2020. Section 10A was introduced in the wake of the Covid-19 outbreak and subsequent lockdown, on March 25, 2020. According to ET, NCLT said that the default took place when Cyquator didn't make the payment even after the guarantee was invoked by IDBI Trusteeship vide notice dated June 12, 2020. IDBI counsel had argued that the date of default should be considered as May 13, 2022. Cyquator Media was represented by Advocate Nausher Kohli. ET relates that the bench, however, clarified that this order will not prevent IBDI Trusteeship from recovering dues from Cyquator before any other competent forum/court of law. "Nothing observed herein before should be construed to mean that the debt in question has extinguished," the order stated. In 2015, Essel Infra Projects issued 425 rated, unlisted, redeemable, non-convertible debentures in 2 Series, each debenture having a face value of INR1 crore, aggregating to INR425 crore on a private placement basis, ET discloses. The date of maturity of the NCDs was May 22, 2020. About Essel Group Essel Group, a business conglomerate, operates in media, entertainment, packaging, infrastructure, education, precious metals, lifestyle and wellness, and technology sectors. The company's activities include operating news and entertainment television channels; DNA, an English-language broadsheet; amusement parks and lifestyle malls; operating a chain of commercial complexes, housing complexes, construction business, and multiplex cinema-cum-family activity centers; digital screens; a food and lifestyle television channel; and a chain of K-12 schools and pre-schools. The company also provides direct-to-home entertainment services and information technology infrastructure outsourcing services. GINGER INFRASTRUCTURE: CRISIL Keeps D Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Ginger Infrastructure Private Limited (GIPL) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 30 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with GIPL for obtaining information through letter and email dated March 25, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of GIPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on GIPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of GIPL continues to be 'CRISIL D Issuer Not Cooperating'. GIPL, incorporated in 2014, has constructed a commercial complex and a hotel-cum-banquet hall at Nagpur. Operations are managed by Mr Mohd. Arshad Sheikh. GRACE MICRON: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------ CRISIL Ratings said the ratings on bank facilities of Grace Micron LLP (GML) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 0.75 CRISIL D (Issuer Not Cooperating) Cash Credit 2 CRISIL D (Issuer Not Cooperating) Long Term Loan 6.75 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with GML for obtaining information through letter and email dated March 25, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of GML, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on GML is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of GML continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. GML, established in 2016 at Morbi, is a Greenfield project for manufacturing and purifying of soda and potash feldspar mainly used in the ceramic industry. The firm commenced operations in October 2017. GREENCARE AGROVET: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Greencare Agrovet (GA) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6 CRISIL D (Issuer Not Cooperating) Term Loan 8.35 CRISIL D (Issuer Not Cooperating) Working Capital 1.1 CRISIL D (Issuer Not Demand Loan Cooperating) CRISIL Ratings has been consistently following up with GA for obtaining information through letter and email dated March 25, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of GA, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on GA is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of GA continues to be 'CRISIL D Issuer Not Cooperating'. Established in 2013, Lucknow (Uttar Pradesh)-based GA, a proprietorship firm of Ms Rinkie Singh, is engaged in the trading of poultry feed and in poultry business i.e. produces eggs from layer chicken. Its farm has a layer bird capacity of 50,000 slayer birds. INTOUCH TRADING: CRISIL Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Intouch Trading Private Limited (ITPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term 3 CRISIL D (Issuer Not Bank Loan Facility Cooperating) Term Loan 9.5 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with ITPL for obtaining information through letter and email dated March 31, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of ITPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on ITPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of ITPL continues to be 'CRISIL D Issuer Not Cooperating'. ITPL, incorporated in 2001, is a part of the City group established by Mr. R R Modi and his associates. The company is developing an information technology park in Noida (Uttar Pradesh). M. M. AUTOMOBILES: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of M. M. Automobiles (MMA) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 3.5 CRISIL D (Issuer Not Cooperating) Standby Line of Credit 0.5 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with MMA for obtaining information through letter and email dated March 31, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of MMA, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on MMA is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of MMA continues to be 'CRISIL D Issuer Not Cooperating'. MMA was set up in 2003 as a proprietorship concern by Mr. Mutchu Mithi. It is an authorized dealer for passenger vehicles of Hyundai Motor India Ltd. The firm operates a showroom in Itanagar (Arunachal Pradesh). MAROLI NH: Ind-Ra Hikes Bank Loan Rating to BB+, Outlook Stable --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has upgraded Maroli NH Road Private Limited's (MNRPL) senior project bank loan rating to 'IND BB+' from 'IND BB' The Outlook is Stable. The detailed rating action is: -- INR52.33* mil. (USD 8.28 mil.)^ (reduced from INR97.7 mil.) Senior project bank loan* due on September 2024 upgraded with IND BB+/Stable rating. * outstanding on May 30, 2023 ^ conversion rate as per hedged rate of USD1 = INR62.05, INR62.5, INR65 for USD 0.21, 0.35, 0.27 million respectively The upgrade reflects the completion of major maintenance in FY23, leading to an improvement in the road quality as per the independent engineer's (report dated May 27, 2023). The ratings continue to be supported by the availability-based stable cash flows, with timely receipt of 18 annuities without any material deductions from the counterparty, Roads and Buildings Department, Government of Gujarat (R&BD, GOG). The rating also factors in the moderate sponsor credit profile of Relcon Infraprojects Ltd (Relcon), which has provided an unconditional and irrevocable guarantee to fund any shortfall in debt servicing obligation. However, Ind-Ra has not provided credit enhancement value, given the guarantee would be invoked only in a post-default scenario. The rating remains constrained by MNRPL's moderate debt structure and foreign exchange risk. Key Rating Drivers Major Maintenance Completed; Improved Debt Service Indicator: The completion of major maintenance in FY23 has reduced MNRPL's vulnerability to deductions in annuity payments by the authority. Furthermore, the debt service coverage ratio in FY23 was 1.2x, better than Ind-Ra's base case estimate, due to savings in operations and maintenance (O&M) expenses. The projected debt service coverage indicator would be comfortable above 1x, considering the revised O&M expenses being in line with the actual expenses incurred historically. The ratings benefit from the low complexity of maintenance requirement due to the less complex road structures on the project corridor. As per the roughness index report, as of October 2022, the project was observed to be below the threshold limit of 2,500 mm/km for the entire road, which classifies the road as 'in good' condition. The concession agreement has listed the time limit for each type of repair, and the ratification of defects and deficiencies. An independent engineer will determine whether any delay has occurred while conducting remedial work on these defects and shall determine penalties, if payable. The O&M risks are mitigated to some extent by the sponsor's track record in road projects with adequate credit profile, and the sponsor support undertaking to support any shortfall in O&M expenses. Moderate Debt Structure; Forex Risk: The loan will be completely amortized one year prior (September 2024) to the date of receipt of the last annuity, leaving a short tail of two annuities. The repayments are scheduled in March and September every year (same month as annuity due dates), while interest payments are made in May and November. While the principal outstanding and interest rate are hedged, the exchange rate risk on interest payments persists. The depreciation of the Indian rupee against the US dollar being higher than the base case assumption can lead to an increase in interest payments. However, the sponsor has provided an unconditional and irrevocable guarantee to fund any additional amount payable due to exchange/interest rate fluctuations. Robust Sponsor Support Undertaking: The rating benefits from the support undertakings provided by Relcon to fund any shortfall/delay in annuity, shortfall in debt service reserve, termination payment shortfall, shortfall in major maintenance, O&M, working capital expenses, and any penalty imposed by the authority. The funds injected by the sponsor will be subordinated fully to the senior debt facility, with no rights to call an event of default. The sponsor, Relcon undertakes civil construction work in Maharashtra (mainly Mumbai) and Gujarat, and also manufactures ready mix concrete. In FY23 (provisional financials), the sponsor reported a total income of INR5,261 million (FY22:INR3,900 million), with an EBITDA of INR613 million (INR420 million). Liquidity Indicator – Adequate: MNRPL will receive its 19th annuity payment of around INR26.64 million by September 2023. The available liquidity in the form of cash and bank balance and free fixed deposits of INR31.4 million and the upcoming annuity payment will be used for the repayment of INR16.12 million that is due by the end of September 2023, the interest payment in November 2023, and the O&M expense until the receipt of the next annuity in March 2024. The company has scheduled repayments of INR18.11 million each in March 2024 and September 2024, which would be the final repayment. A debt service reserve (DSR) account of INR22.5 million, equivalent to half year of principal repayments and one quarter of interest payments, has been maintained in accordance with financing documents in the form of bank guarantee. The DSR bank guarantee expires by September 26, 2023 and it will be renewed from the non-fund-based limits of the sponsor, as confirmed by the management. Given the project's vulnerability to delays in annuity, maintaining of adequate internal liquidity and timely sponsor support are of utmost importance for the timely debt servicing. Low Revenue Risk Profile: The rating reflects MNRPL's limited revenue risks, given the fixed availability-based annuity payments from R&BD, GOG. Each semi-annual payment is sized at INR26.64 million that will be received during March and September every year, according to the concession agreement. The key credit strength of project is demonstrated by the timely receipt of 18 annuities without any major deductions within an average of 29 days from the scheduled annuity date. Rating Sensitivities Negative: Any material delays or deductions in the receipt of annuity or adverse changes in currency and interest, absent sponsor support, depletion of liquidity and deterioration in the credit profiles of the sponsor and O&M contractor could result in a negative rating action. Positive: The timely receipt of annuities and renewal of the DSR bank guarantee in time, any further improvement in the project's performance, resulting in the minimum DSCR being higher than 1.1x during the debt tenor could result in a positive rating action. Company Profile MNRPL is a special purpose vehicle promoted by Relcon. It has been incorporated to implement the two-laning of NH Maroli section (0.70km to 15.60km) on National Highway 8 in Gujarat under a design, build, finance, operate and transfer (annuity basis) model. The 13-year concession has been awarded by the Roads and Buildings Department, GoG. Relcon has over three decades of experience in the civil construction industry, especially roads and buildings. MARS PLYWOOD: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------ CRISIL Ratings the ratings on bank facilities of Mars Plywood Industries Private Limited (MPIL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 0.75 CRISIL D (Issuer Not Cooperating) Cash Credit 8.5 CRISIL D (Issuer Not Cooperating) Letter of Credit 31 CRISIL D (Issuer Not Cooperating) Standby Line 1.75 CRISIL D (Issuer Not of Credit Cooperating) Standby Line 4.25 CRISIL D (Issuer Not of Credit Cooperating) CRISIL Ratings has been consistently following up with MPIL for obtaining information through letter and email dated March 31, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of MPIL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on MPIL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of MPIL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. MPIL was established by Mr Roshan Lal Agarwal in 2001. The company has plywood manufacturing units in Kolkata and Mangaluru, with capacities of 20,000 square metre (sqm) and 12,000 sqm, per annum, respectively. The key product, premium-grade plywood, is sold under the Mars Ply brand. MATHURA DEVELOPER: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Mathura Developer (MD) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Term Loan 1.14 CRISIL D (Issuer Not Cooperating) Term Loan 3.86 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with MD for obtaining information through letter and email dated March 25, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of MD, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on MD is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of MD continues to be 'CRISIL D Issuer Not Cooperating'. MD was established in October 2012 by Dr. Laxmikant Bajaj in Nanded (Maharashtra). The firm is undertaking a commercial real estate development project in Nanded. Its operations are managed by Dr. Laxmikant Bajaj's younger brother, Mr. Sanjay Bajaj. MOHANLAL JEWELLERS: Ind-Ra Gives BB+ Loan Rating, Outlook Stable ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has rated Mohanlal Jewelers Private Limited's (MJPL) bank facilities as follows: -- INR1.0 bil. Fund-based working capital limits assigned with IND BB+/Stable/IND A4+ rating. Key Rating Drivers The rating is constrained by the pending decision of the income tax raid by the income tax authorities on MJPL in November 2020 involving an amount of INR11,718 million, which was classified as contingent liabilities in the financials. Any decision against the company could materially impact its financial position. The rating is also constrained by customer concentration risks as MJPL's largest customer accounted for approximately 41% of the revenue in FY22 (FY21: 41%) and the top five customers accounted for about 56.63% (54.47%). However, majority of the customers are well-established and reputed players in the retail jewelry market, which mitigates this risk to some extent. Further, most of the revenue is generated from India (87%) and the rest from Malaysia, the UAE and Singapore. While the company is targeting to increase its exports by foraying into new geographies such as New Zealand, Ind-Ra expects the concentration risk to remain material in the medium term. The rating also factors in MJPL's modest credit metrics as indicated by interest coverage (operating EBITDA/gross interest expense) of 2.14x in FY22 (FY21: 3.85x) and net leverage (total adjusted net debt/operating EBITDAR) of 4.22x (2.15x). The deterioration in the credit metrics was on account of a decline in the absolute EBITDA to INR448.25 million in FY22 (FY21: INR762.74 million). The credit metrics is likely to have improved in FY23 on account of a likely increase in the EBITDA due to an increase in making charges and foreign exchange gains. Ind-Ra expects the credit metrics to remain moderate in the medium term owing to increased EBITDA. The rating also reflects the company's medium scale of operations. The revenue grew at a CAGR of 15% to INR50,444.36 million over FY19-FY22 (FY21: INR46,871.63 million), due to an increase in demand for gold post COVID-19 disruption, along with an increase in price of gold. As per management, the revenue increased further to INR64,600 million in FY23 on account of repeat orders from customers. Ind-Ra expects the revenue to grow further over the medium term as MJPL is diversifying into new geographies. The rating also factors in MJPL's modest EBITDA margin of 0.89% in FY22 (FY21: 1.63%) with a return on capital employed of 10.3% (21.3%). The deterioration in EBITDA margin was on account of an increase in manufacturing and administrative expenses, as well as increase in gold prices. MJPL is a business-to-business player with a concentrated customer base, and as such, has limited margins amid volatile bullion prices. In FY22, bullion and jewelry contributed around 55% and 45% to the revenue, respectively. The margin is negligible in case of bullion; hence, major portion of EBITDA is contributed by sale of jewelry. In 10MFY23, MJPL reported margin of 1.17% due to an increase in other operating income. Ind-Ra expects the EBITDA margins to have remained stable on a year-on-year basis in FY23 and will continue to do so in the medium term. Liquidity Indicator - Stretched: MJPL's average maximum utilization of the fund-based working capital limits was 96.85% during the 12 months ended May 2023. Despite the company's operations being working capital-intensive in nature, it had a short net working capital cycle of 23 days in FY22 (FY21: 32 days) due to a lower inventory holding period of 16 days (16 days) on account of receipt of advances from customers. The cash flow from operations remained negative, although improved to negative INR69.03 million in FY22 (FY21: negative INR298.45 million), owing to favorable changes in working capital. The free cash flow has been negative over FY21-FY22 (FY22: negative INR75.94 million, FY21: negative INR326.68 million) due to negative cash flow from operations and maintenance capex. The capex is likely to remain stable as the management does not envisage any significant expansionary capex in the near term. MJPL has scheduled debt repayments of INR44.8 million in FY24. MJPL had cash and bank balances of INR198.55 million at FYE22 (FYE21: INR379.29 million). However, the rating is supported by MJPL's over three decades of experience in the jewelry manufacturing business, leading to established relationships with reputed customers including Lalithaa Jewelry, GRT Jewelers ('IND AA-'/Positive), Saravana stores Elite Private Limited, among others. Being a strong business-to-business player with an established clientele ensures revenue visibility for the company. Furthermore, the company has more than a-decade-long relationship with some of its major customers and suppliers, leading to repeat orders. Rating Sensitivities Negative: Unsatisfactory resolution of contingent liabilities, could lead to a negative rating action. Positive: Improvement in disclosure and satisfactory resolution of contingent liabilities could lead to a positive rating action. Company Profile Incorporated in 2009, Chennai-based MJPL is engaged in the manufacturing and wholesale of gold jewelry. It also exports its products to companies in the UAE, Singapore, Switzerland and Malaysia. NATURAL PRODUCTS: CRISIL Keeps C Debt Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings the ratings on bank facilities of Natural Products Export Corporation Limited (NPECL) continue to be 'CRISIL C Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Export Packing 2.25 CRISIL C (Issuer Not Credit Cooperating) Export Packing 9.25 CRISIL C (Issuer Not Credit Cooperating) CRISIL Ratings has been consistently following up with NPECL for obtaining information through letter and email dated March 25, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of NPECL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on NPECL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of NPECL continues to be 'CRISIL C Issuer Not Cooperating'. Set up in 1993, NPEC exports dried flower products. Its day-to-day operations are managed by Mr. Vimal Saraogi and Mr. Anil Kumar Saraogi. NETWORK TRADELINK: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL Ratings the ratings on bank facilities of Network Tradelink Private Limited (NTPL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 2 CRISIL D (Issuer Not Cooperating) Letter of Credit 3 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with NTPL for obtaining information through letter and email dated March 31, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of NTPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on NTPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of NTPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. NTPL, incorporated in 2009 and promoted by Kolkata-based Jhawar family, trades in, and processes, grey fabric. It procures grey fabric from across India, and outsources its processing, including bleaching and dyeing, to jobworkers in different parts of the country. NILKANTH COTTON: CRISIL Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------------- CRISIL Ratings the ratings on bank facilities of Nilkanth Cotton Industries (NCI) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4 CRISIL D (Issuer Not Cooperating) Proposed Long Term 3 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with NCI for obtaining information through letter and email dated March 25, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of NCI, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on NCI is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of NCI continues to be 'CRISIL D Issuer Not Cooperating'. Set up in 2007 NCI is a partnership between Mr. Prahladbhai Patel, Mr. Jethabhai Padhariya, Mr. Pragjibhai Padhariya, and Mr. Vallabhbhai Padhariya. The firm has a cotton ginning unit at Dhasa in Bhavnagar (Gujarat), with capacity of 200 bales per day. It also has a cotton-seed oil crushing unit. NIZAMABAD MUNICIPAL: ICRA Downgrades Issuer Rating to B+ -------------------------------------------------------- ICRA has downgraded the ratings on certain bank facilities of Nizamabad 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 Nizamabad 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 Nizamabad 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. The NMC, an urban local body, was upgraded to a Municipal Corporation in 2005 from a selection-grade Municipality. The ULB provides municipal services to the city of Nizamabad, situated in the Nizamabad district of Telangana and is governed by the Telangana Municipalities Act 2019. It covers an area of 98.34 sq. km. and serves a population of 3.9 lakh (projected for FY2021). The limits of the ULB were last expanded in 2019 as nine nearby villages were merged with the ULB. Its major functions include water supply, sewerage, solid waste management and construction, repair and maintenance of roads and streetlights in its area. The ULB is divided into 60 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. NMS ENTERPRISES: CRISIL Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------------- CRISIL Ratings the ratings on bank facilities of NMS Enterprises Limited (NMSEL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 1 CRISIL D (Issuer Not Cooperating) Cash Credit 4.5 CRISIL D (Issuer Not Cooperating) Proposed Long Term 4.5 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with NMSEL for obtaining information through letter and email dated March 25, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of NMSEL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on NMSEL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of NMSEL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. NMSEL was incorporated in 1991 to provide payroll management services for telecom companies in India. Subsequently, the company diversified into fields of construction and skill development services. Operations are managed by Mr Pankaj Chander and Mr Sanjay Gupta. NRV YARNS: Ind-Ra Assigns BB- Bank Loan Rating, Outlook Stable -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has rated NRV Yarns Private Limited's (NRVYPL) bank loans at 'IND BB-'. The Outlook is Stable. The detailed rating actions are: -- INR90 mil. Fund-based working capital limits assigned with IND BB-/Stable/IND A4+ rating; and -- INR610 mil. Term loan due on February 2031 assigned with IND BB-/Stable rating. Key Rating Drivers The ratings reflect Ind-Ra's expectation of NRVYPL's credit metrics to have deteriorated in FY23 and to continue to do so in FY24, due to an increase in its total debt by INR420 million due to the term loans availed for its new unit. This loan, along with an equity contribution of INR156 million by promoters and the balance from internal accruals, will fund the total project cost of INR577 million. In FY22, NRVYPL's moderate credit metrics had improved with an interest coverage (operating EBITDA/gross interest expenses) of 4.10x in FY22 (FY21: 2.64x) and a net leverage (adjusted net debt/operating EBITDAR) of 3.62x (4.50x) due to an increase in the operating EBITDA to INR98.60 million (INR73.77 million) and the resultant decline in the interest expense to INR24.03 million (INR27.90 million). Till 11MFY23, the company had booked a revenue of INR793.23 million. Ind-Ra expects the revenue to remain stable in FY23 and improve in FY24 on account of the commencement of the commercial operations at the company's new unit from April 2023.The ratings further reflect NRVYPL's small scale of operations with a revenue of INR924.70 million in FY22 (FY21: INR586.93 million). The revenue grew in FY22, due to a recovery in the economic activities post Covid-19, coupled with an increase in the demand in the apparel retail industry and increased sales realizations. Liquidity Indicator - Stretched: NRVYPL has scheduled repayment obligations of INR121.96 million and INR120.01 million in FY24 and FY25 respectively. NRVYPL does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. NRVYPL's average maximum utilization of its fund-based limits was 22.8% during the 12 months ended April 2023. The cash flow from operations turned negative at INR36.84 million in FY22 (FY21: INR133.28 million) due unfavorable changes in the working capital. Consequently, the free cash flow too turned negative at INR107.22 million in FY22 (FY21: INR33.28 million). The company had a net working capital cycle of 51 days in FY22 (FY21: 42 days), which shortened due to a reduction in the payable days to 10 (44). It had cash and cash equivalents of INR15.07 million at FYE22 (FYE21: INR11.77 million). Till 11MFY23 company had booked an EBITDA of INR51 million with an EBITDA margin of 6.46%. NRVYPL's modest EBITDA margin had declined to 10.66% in FY22 (FY21: 12.57%) with a return on capital employed of 10.20% (0.90%), despite the revenue increase due to an increase in the cost of raw material and other operational expenses. Ind-Ra expects the EBITDA margin to have remained at similar levels in FY23 and to do so in FY24, due to the high input cost. However, the ratings are supported by the promoters' nearly two decades of experience in the textile industry, leading to established relationships with its customers as well as suppliers. Rating Sensitivities Positive: A significant increase in the scale of operations while maintaining the overall credit metrics with an improvement in liquidity profile, all on a sustained basis, could lead to a positive rating action. Negative: A decline in the scale of operations leading to deterioration in the overall credit metrics with the interest coverage falling below 2x and/or deterioration in the liquidity profile, on a sustained basis, could lead to a negative rating action. Company Profile Incorporated in 2016, NRVYPL manufactures 100% cotton yarn at its plant in Rajkot, Gujarat. The company's product portfolio includes cotton yarn of different counts, ranging between 6's and 20's. It has a total manufacturing capacity of 22,000 spindles and is establishing a new unit with a capacity of 22,000 spindles. PALA DIOCESAN: Ind-Ra Affirms BB- Bank Loan Rating -------------------------------------------------- India Ratings and Research (Ind-Ra) has taken following rating actions on Pala Diocesan Medical Education Trust's (PDMET) bank facilities: -- INR1,692.17 bil. (reduced from INR1,776.22 bil.) Bank loans affirmed with IND BB-/Stable rating; -- INR120 mil. (increased from INR80 mil.) Fund based working capital facility affirmed with IND BB-/Stable rating; and -- INR187.83 mil. (increased from INR143.78 mil.) Proposed bank loans* affirmed with IND BB-/Stable rating. * Unallocated limits Key Rating Drivers Liquidity Indicator – Poor: PDMET's unencumbered cash and bank balance remained low at INR10.43 million at FYE23 (FYE22: INR14.66 million). The receivable days remained comfortable but increased to 12 days in FY23 (FY22: eight days). The average monthly utilization of its INR120 million fund-based working capital limit was high at 78% for the 12 months ended May 2023. The cash flow from operation declined to INR145.65 million in FY23 (FY22: INR303.41 million) due to unfavorable changes in working capital. PDMET will continue rely on unsecured loans and donations provided by the trustees to meet its scheduled debt service commitments of INR352 million in FY24 and INR392 million in FY25. FY23 financials are provisional in nature. The ratings continue to be constrained by PDMET's high debt burden (net debt/EBITDA) and weak coverage metrics in FY23. The net debt/EBITDA increased to 17.06x in FY23 (FY22: 13.78x) due to a fall in the EBITDA to INR108.49 million (INR133.49 million). The debt service coverage and interest coverage (EBITDA/debt service commitments) remained low and fell to 0.37x (0.57x) and 0.80x (0.88x), respectively, in FY23. During FY19-FY23, the trustees of PDMET continuously supported the trust by providing funds in the form of corpus donations and unsecured loans of INR648.97 million. The trust utilized these funds for debt servicing and capex requirement during the period. Ind-Ra expects PDMET's debt burden to remain high above 7x during FY24-FY25. The ratings also factor in PDMET's weak operating profitability. The EBITDA margin declined to 5.49% in FY23 (FY22: 7.17%) as staff cost increased by 37.55% yoy to INR821.72 million, due to growth in the number of employees. Ind-Ra expects the margins to increase gradually in FY24, owing to moderate growth in revenue and increased control over expenditure. The ratings are supported by continued growth in PDMET's revenue, which increased to INR1,976.53 million in FY23 (FY22: INR1,862.56 million), led by an increase in the number of patient visits and higher student strength in the trust's nursing college. The patient visits in PDMET's hospital increased 16.44% yoy to 4,26,199 in FY23, with an occupancy rate of 42%. Furthermore, the student strength of the nursing college run by the trust increased to 245 in FY23 (FY22: 228) owing to an increase in approved intake for the Bachelor of Nursing course to 75 (60). The revenue is likely to increase in FY24, led by increasing demand and availability of adequate infrastructure in PDMET's hospital. The ratings continue to benefit from PDMET's operational track record of nearly two decades and adequate financial support from the trustees. Ind-Ra expects the trustees to continue to offer support to PDMET as and when required. Rating Sensitivities Positive: Events that may, individually or collectively, lead to a positive rating action are: - sustained improvement in the operating profitability, - the debt service coverage ratio exceeding 1x over the medium term, and - a significant fall in the debt/EBITDA to below 6x. Negative: Events that may, individually or collectively, lead to a negative rating action are: - deterioration in the hospital's operational performance, and - the lack of financial support from the trustees in the form of unsecured loans and donations. Company Profile PDMET was established as a public charitable trust in 2005 in Kottayam, Kerala. It runs a nursing college named Mar Sleeva College of Nursing, which offers Bachelor of Nursing, Post Basic Bachelor of Nursing and Master of Nursing courses. It also manages a tertiary care hospital (Mar Sleeva Medicity) with a capacity of 700 beds (648 beds are operational) which is accredited by National Accreditation Board for Hospitals & Healthcare Providers. PREMIER EXPORTS: Ind-Ra Moves BB Issuer Rating in Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Premier Exports International's (PEI) Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- INR150 mil. Fund-based working capital limits migrated to Non- Cooperating Category with IND BB (ISSUER NOT COOPERATING)/ IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on best available information. The ratings were last reviewed on April 29, 2022. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. Key Rating Drivers As the agency does not have adequate information to review the ratings, the ratings have been migrated to the Non-Cooperating Category. This is in accordance with Ind-Ra's policy of 'Guidelines on What Constitutes Non-cooperation'. Company Profile Established in 1980 as a partnership firm, PEI is engaged in the processing and export of frozen marine products such as shrimps, squid and cuttlefish. The processing includes peeling, cleaning and freezing of shrimps. RAKESH TEXTILES: CRISIL Keeps B Debt Ratings in Not Cooperating --------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Rakesh Textiles (RT) continue to be 'CRISIL B/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4 CRISIL B/Stable (Issuer Not Cooperating) Cash Credit 1 CRISIL B/Stable (Issuer Not Cooperating) Long Term Loan 1.8 CRISIL B/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with RT for obtaining information through letter and email dated March 31, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of RT, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on RT is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of RT continues to be 'CRISIL B/Stable Issuer Not Cooperating'. Set up in 2004, RT is a partnership firm based in Panipat, Haryana. It began commercial operations in fiscal 2017, by manufacturing and selling polyester curtains. Daily operations are managed by the partners, Mr Rakesh Khanna and his brother, Mr Yogesh Khanna. RBD INTERNATIONAL: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of RBD International (RBD) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Foreign Bill 11 CRISIL D (Issuer Not Purchase Cooperating) Foreign Bill 5 CRISIL D (Issuer Not Purchase Cooperating) Packing Credit 4 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with RBD for obtaining information through letter and email dated March 31, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of RBD, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on RBD is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of RBD continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. For arriving at the rating, CRISIL Ratings has combined the business and financial risk profiles of RBD International, Welldone Exim Pvt Ltd, High Value Exim Pvt Ltd, Attire Designers Pvt Ltd, and Goodone Traders Pvt Ltd. This is because all these entities, together referred to as the RBD group, have the same board of directors and senior management team with common procurement, marketing, and finance functions. The RBD group started trading in 1993. All the entities in the group were trading in readymade garments (more than 80 percent of revenue), hosiery, handicrafts, fabrics, leather goods, and miscellaneous products. They have common customers and suppliers, and also the same banker, Punjab National Bank, and auditors. RELIGARE FINVEST: Ind-Ra Affirms 'D' Long Term Issuer Rating ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has affirmed Religare Finvest Limited's (RFL) Long-Term Issuer Rating at 'IND D'. The instrument-wise rating actions are: -- INR1.2 mil. Lower tier 2 sub-debt (long term)# affirmed with IND D rating; -- INR2.5 mil. (reduced from INR11 mil.)* Long-term bank loans affirmed with IND D rating. #Details in Annexure * Ind-Ra has withdrawn the rating assigned to INR8.5 billion bank facility which has been repaid and received no dues certificate from the rated lender. Key Rating Drivers The affirmation reflects RFL's continued delays in debt servicing since April 2019 due to misappropriation of funds by the erstwhile promoters. The company is still under the corrective action plan advised by the Reserve Bank of India (RBI) since January 2018. RFL had proposed a debt resolution plan to the RBI with Religare Enterprises Ltd (REL) as the promoter/shareholder in March 2020; however, the RBI vide a letter dated February 11, 2022 advised RFL that its restructuring cannot be implemented with REL. Post which, RFL proposed a one-time settlement (OTS) with secured lenders (including unsecured exposure). Thereafter, on December 30, 2022, RFL, along with the parent, REL, entered into a settlement agreement with all the 16 secured lenders in connection with the OTS for a full and final payment of all the outstanding dues. RFL completed the OTS with the secured lenders on March 8, 2023, by making a settlement payment of INR21.8 billion. RFL has paid around 72% of the principal outstanding to its secured lenders and 20% of the principal outstanding to its lenders having unsecured exposure using resources from its own balance sheet and with assistance from REL, wherein, REL deposited INR2.2 billion on behalf of RFL against OTS. RFL continues to have an unsecured exposure of INR2,500 million from ICICI Bank Ltd and INR800 million towards non-convertible debentures - two of its unsecured lenders/investors. Furthermore, RFL plans to seek removal of the corrective action plan after the settlement of the remaining debt. RFL plans to revive its business with its current collections and will continue to focus on lending secured and unsecured loans to micro, small and medium enterprises, and build a granular book. RFL is divesting its subsidiary Religare Housing Development Finance Corporation Limited (87.5%) to its parent REL, which will help RFL to focus and grow its own loan book. RFL shall also continue to pursue recovery from the corporate loan book and its fixed deposits from Lakshmi Vilas Bank, along with the interest therein. Rating Sensitivities Positive: Timely debt servicing for at least three consecutive months would result in a positive rating action. Company Profile RFL is a non-bank finance company providing loans primarily to micro, small and medium enterprises through its product offering of loan against property and working capital loans. RUDRA BUILDWELL: Insolvency Resolution Process Case Summary ----------------------------------------------------------- Debtor: Rudra Buildwell Projects Private Limited Registered Address: D-53, Okhla Phase-I, New Delhi, Delhi-110020, India Address other than Registered Address: A-66, Sector-63, Gautam Buddha Nagar, Noida, 201301, U.P., India Insolvency Commencement Date: June 7, 2023 Estimated date of closure of insolvency resolution process: December 4, 2023 (180 Days) Court: National Company Law Tribunal, New Delhi Bench Insolvency Professional: Sanyam Goel Unit No. 110, First Floor, JMD Pacific Square, Sector 15 Part II, Gurugram, Haryana-122001 Email: goelsanyam@gmail.com cirp.rudra@gmail.com Representatives of Creditors in a Class: 1. Mr. Sunder Khatri GF-124 & 1113 World Trade Centre Babar Road, Lalit Hotel, New Delhi, National Capital Territory of Delhi, 110001 Email: sunder_khatri@yahoo.com 2. Mr. Pramod Kumar Gupta B-1/10, Lower Ground Floor, Hauz Khas, South New Delhi, National Capital Territory of Delhi 110016 Email: variety.financial@gmail.com 3. Mr. Sunil Prakash Sharma E-25, Lajpat Nagar-3, New Delhi, National Capital Territory of Delhi, 110024 Email: adv.suilprakash@gmail.com Last date for submission of claims: June 21, 2023 RUPSHA FISH: Ind-Ra Gives BB+ LT Issuer Rating, Outlook Stable -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Rupsha Fish Private Limited (RFPL) a Long-Term Rating of 'IND BB+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR178 mil. Fund-based working capital limits assigned with IND BB+/Stable/IND A4+ rating; -- INR60 mil. Working capital term loan assigned with IND BB+/ Stable rating; and -- INR7 mil. Non-fund-based working capital limits assigned with IND A4+ rating. Key Rating Drivers The ratings reflect RFPL's medium scale of operations, as indicated by its revenue of INR1,901 million in FY23 (FY22: INR1,891 million; FY21: INR1,425 million). The revenue had increased in FY22 owing to an increase in the number of orders executed. While RFPL was earlier dealing in a variety of seafood such as shrimp, Hilsa fish, Katla fish and Shad fish, and rice, after FY22, the product portfolio contains shrimp and rice only. RFPL's peak season is May to December and the revenue during this period thus is higher than in the rest of the year. It majorly exports to Germany at around 56%, followed by Netherlands at 37%, and other countries at 6%, and the rest is sold domestically. As of 1 June 2023, RFPL had an outstanding order book of INR262.4 million in hand, which will be executed by July 2023. Ind-Ra expects the revenue to remain at a similar level in FY24. FY23 financials are provisional in nature. Liquidity Indicator - Stretched: REPL debt obligations in FY24 and FY25 are INR30.10 million and INR10.10 million, respectively. RFPL does not have any capital market exposure and relies on a single bank to meet its funding requirements. The average maximum utilization of the fund-based working capital limits was around 79.92% and non-fund based working capital limits was 12.69% over the 12 months ended April 2023. In FY22, the cash flow from operations had turned negative INR77.45 million (FY21: INR74.80 million) mainly on account of increased working capital requirements. Moreover, the free cash flow had turned negative INR77.45 million in FY22 (FY21: INR74.25 million). The cash and cash equivalents was INR120.45 million in FY22 (FY21: INR144.47 million). The networking cycle marginally had deteriorated to 30 days in FY22 (FY21: 29 days) mainly on account of an increase in debtor days to 21 in FY22 (FY21:16). The ratings however also reflect RFPL's comfortable credit metrics as reflected by the interest coverage (operating EBITDA/gross interest expenses) of 6.11x in FY22 (FY21: 1.91x) and the net leverage (total adjusted net debt/operating EBITDAR) of 0.26x (2.37x). The metrics had improved in FY22, due to an increase in the absolute EBITDA to INR78.63 million in FY22 (FY21: INR15.69 million). Ind-Ra expects the credit metrics to have remained at a similar level in FY23 and trend could follow in FY24, due to the absence of debt-led capex plans. The ratings also factor in RFPL's healthy EBITDA margin of 4.16% in FY22 (FY21: 1.10%) with a return on capital employed of 17.5% (2.6%). The margin had increased in FY22 due to an increase in the other operating income. Ind-Ra expects the EBITDA margin to have remained range-bound in FY23 and the trend could follow in FY24, due to the similar nature of orders in hand. The ratings are supported by the promoters' nearly 21 years of experience in the sea food processing business. This has facilitated the company to establish strong relationships with customers as well as suppliers. Rating Sensitivities Positive: A significant increase in the scale of operations, along with an improvement in the overall credit metrics and liquidity profile, all on a sustained basis, could lead to a positive rating action. Negative: A decline in the scale of operations, leading to deterioration in the overall credit metrics with net leverage above 4.5x and liquidity profile, all on a sustained basis, could lead to a negative rating action. Company Profile Incorporated in 2011, by Amzaad Hossain and Ganesh Mitra, RFPL began operations by processing and selling fish to exporters in West Bengal. During December 2016-2021, the company directly exported processed sea fish, such as Hilsa Fish, Katla Fish, Shad Fish and shrimps, mainly to the US, China, Vietnam, and Europe Union countries such as Netherlands, Germany, Belgium, and Denmark. Since FY22, it has started dealing in shrimp and rice only. The processing facility is at Khardah in Kolkata. S.N.R. DHALL: CRISIL Keeps B Debt Ratings in Not Cooperating ------------------------------------------------------------ CRISIL Ratings said the ratings on bank facilities of S.N.R. Dhall Mill (SDM; Part of SNR Group) continue to be 'CRISIL B/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6.5 CRISIL B/Stable (Issuer Not Cooperating) Term Loan 3.5 CRISIL B/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SDM for obtaining information through letter and email dated March 31, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of SDM, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SDM is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SDM continues to be 'CRISIL B/Stable Issuer Not Cooperating'. For arriving at the ratings, CRISIL Ratings has combined the business and financial risk profiles of SDM and S.N. Rathinasamy Nadar & Sons (SNR). This is because both the firms, together referred to as the SNR group, have a common management and business synergies. SNR is a partnership firm engaged in the processing of Lentils (Dal), mainly Urad Dal, Moong Dal and Tur Dal. It was incorporated in 1976 and is based out of Chennai. SDM, set up in 1980, is a partnership firm engaged in processing of Lentils (Dal), mainly Urad Dal, Moong Dal and Tur Dal. It is based out of Chennai. SAISHA ENTERPRISES: CRISIL Keeps D Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings the ratings on bank facilities of Saisha Enterprises Private Limited (SEPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term 6.08 CRISIL D (Issuer Not Bank Loan Facility Cooperating) Term Loan 6.42 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SEPL for obtaining information through letter and email dated March 31, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of SEPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SEPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SEPL continues to be 'CRISIL D Issuer Not Cooperating'. Incorporated in 2010, SEPL derives parking income from its parking space located in Shirdi (Maharashtra). The company has constructed its commercial complex including 13 shops, 40-room hotel and a restaurant having total rental area of 1.5 lakh square feet. SEPL is promoted by Mr. Navnath Gondkar and has its registered office in Ahmednagar (Maharashtra). SAM INDUSTRIAL: CRISIL Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings the ratings on bank facilities of Sam Industrial Enterprises Limited (SIEL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 1 CRISIL D (Issuer Not Cooperating) Cash Credit 7.5 CRISIL D (Issuer Not Cooperating) Overdraft Facility 1.5 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SIEL for obtaining information through letter and email dated March 25, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of SIEL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SIEL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SIEL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Incorporated in 1992 in Delhi, SIEL began operations in 2000. It designs, prints, and binds books, brochures, and other reading materials. The company is promoted and managed by Mr Amit Kaka. The company does work for private publishers and jobwork for NCERT. SARAS HOTELS: CRISIL Keeps D Debt Rating in Not Cooperating ----------------------------------------------------------- CRISIL Ratings the rating on bank facilities of Saras Hotels Private Limited (SHPL) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 15 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SHPL for obtaining information through letter and email dated March 25, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of SHPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SHPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SHPL continues to be 'CRISIL D Issuer Not Cooperating'. SHPL, established in 2014, and promoted by Mr.Selvaraj R, is based in Chennai. It runs the 57-room deluxe Days Hotel in Chennai. SEFL DA II: Ind-Ra Cuts Long Term Issuer Rating to 'D' ------------------------------------------------------ India Ratings and Research (Ind-Ra) has downgraded SEFL DA September 2019 II to 'IND D (SO) from 'IND B+ (SO)(ISSUER NOT COOPERATING)' while resolving the Rating Watch with Negative Implications. The instrument-wise rating actions are: -- INR970.31 mil. Assignee payouts (Long-term) issued on September 30, 2019 coupon rate 10.01% due on September 30, 2023 downgraded; off Rating Watch with Negative Implications with IND D (SO) rating; and -- INR279.83 mil. Assignor retention (Long-term) due on September 30, 2023 downgraded; off Rating Watch with Negative Implications with IND D (SO) rating. ^Information as of April 30, 2023, as provided by issuer The construction equipment pool assigned to the trust has been originated by SREI Equipment Finance Limited (SEFL; the assignor, and collection and processing agent (CPA). The downgrade and resolution of Rating watch with Negative Implication reflect the overdue of INR957 million in the assignee payouts as of April 2023. Also, the credit enhancement (CE) of INR900 million has been utilized in full. The rating of the assignee payouts addresses the timely payment of interest and principal to the assignee by the scheduled maturity. The rating of assignor retention addresses the timely payment of principal to assignor by the scheduled maturity date. Hence, the principal overdue has been construed as an event of default for the assigned transaction. Key Rating Drivers Ind-Ra had maintained the ratings on Rating Watch with Negative Implications in May 2022 due to the continued uncertainty around the servicer and the non-availability of information on the performance of the transaction and payout to investors. As per information received from the assignor in June 2023, there has been continuous overdue in the collections from underlying loan borrowers in the assigned pool, and hence, the payouts in the transaction are not in line with the proposed schedule of payments. Also, the CE has been fully utilized in the transaction. The agency has not received any information from the assignee representative with regards to the payouts. The agency understands the Reserve Bank of India had superseded the boards of SEFL and SREI Infrastructure Finance Limited (SIFL) on October 4, 2021 and the companies have been admitted under Corporate Insolvency Resolution Process under Insolvency and Bankruptcy Code, 2016 vide National Company Law Tribunal, Kolkata Bench Order dated October 8, 2021. Based on the application filed by the administrator, the National Company Law Tribunal (NCLT), vide its order dated February 14, 2022, has directed a consolidated insolvency resolution process for SEFL and SIFL. The administrator had published an invitation to expression of interest on 25 February 2022 and has received 14 of the same. The resolution plan submitted by National Asset Reconstruction Company Limited has been approved by the Committee of Creditors by majority voting for consolidated resolution of SIFL and. The administrator of SIFL and SEFL has filed an application for submission of the approved resolution plan with the adjudicating authority, NCLT (Kolkata) on February 18, 2023. Liquidity Indicator – Poor: The CE has been fully utilized in the transaction and the collections from the pool are not sufficient to make the future payouts and provides a liquidity coverage ratio of less than 1.00x of the monthly obligations. Rating Sensitivities Positive: Timely debt servicing for at least three consecutive months, as per the schedule, could result in a positive rating action. Company Profile SEFL is engaged in the financing of construction and mining equipment, information technology, medical and agriculture-based farm equipment. SEFL was a 50:50 JV between SIFL and BNP Paribas Leasing Group (BPLG), a group company of BNP Paribas S.A., with managerial control residing with SIFL. In 2008, SEFL took over SIFL's construction equipment assets (90% of SIFL's total assets), debt liabilities and branch network. SEFL DA III: Ind-Ra Cuts Long Term Issuer Rating to 'D' ------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded SEFL DA September 2019 III to 'IND D (SO)' from 'IND B+ (SO)(ISSUER NOT COOPERATING)' while resolving the Rating Watch with Negative Implications. The instrument-wise rating actions are: -- INR828.60 mil. Assignee payouts (Long Term) issued on September 30, 2019 coupon rate 10.01% due on September 30, 2023 downgraded; off Rating Watch with Negative Implications with IND D(SO) rating; and -- INR183.48 mil. Assignor retention (Long Term) due on September 30, 2023 downgraded; off Rating Watch with Negative Implications with IND D (SO) rating. ^Information as of April 30, 2023, as provided by the issuer The construction equipment pool assigned to the trust has been originated by SREI Equipment Finance Limited (SEFL; the assignor, and collection and processing agent (CPA)). The downgrade and the resolution of Rating Watch with Negative Implication reflect the overdue in assignee payouts of INR807 million at end-April 2023. Also, the credit enhancement (CE) of INR900 million has been utilized in full. The rating of the assignee payouts addresses the timely payment of interest and principal to the assignee by the scheduled maturity. The rating of assignor retention addresses the timely payment of principal to the assignor by the scheduled maturity date. Hence, the principal overdue is construed as an event of default for the assigned transaction. Key Rating Drivers Ind-Ra had maintained the ratings on Rating Watch with Negative Implications in May 2022 due to the continued uncertainty around the servicer and the non-availability of information on the performance of the transaction and payout to investor. As per the information received from the assignor in June 2023, there has been a continuous overdue in the collection from underlying loan borrowers in the assigned pool, and hence the payouts in the transaction are not in line with the proposed schedule of payments. Also, the CE has been fully utilized in the transaction. The agency has not received any information from the assignee representative with regards to the payouts. The agency understands the Reserve Bank of India had superseded the boards of SEFL and SREI Infrastructure Finance Limited (SIFL) on 4 October 2021 and has been admitted under Corporate Insolvency Resolution Process under Insolvency and Bankruptcy Code, 2016 vide National Company Law Tribunal, Kolkata Bench Order dated 8 October 2021. Based on the application filed by the administrator, National Company Law Tribunal (NCLT), vide order dated February 14, 2022, has directed consolidated insolvency resolution process for SEFL and SIFL. The administrator had on February 25, 2022 published an invitation to expression of interest and has received 14 of the same. The resolution plan submitted by National Asset Reconstruction Company Limited (NARCL) has been approved by the Committee of Creditors by majority voting for consolidated resolution of SIFL and SEFL as the successful resolution plan. The administrator of SIFL and SEFL has filed an application for submission of the approved resolution plan with the adjudicating authority i.e. Honorable NCLT, Kolkata on February 18, 2023. Liquidity Indicator – Poor: The CE has been fully utilized in the transaction and the collections from the pool are not sufficient to make the future payouts and provides a liquidity coverage ratio of less than 1.00x of the monthly obligations. Rating Sensitivities Positive: Timely debt servicing for at least three consecutive months, as per the schedule, could result in a positive rating action. Company Profile SEFL is engaged in the financing of construction and mining equipment, information technology, medical and agriculture-based farm equipment. SHAH STEEL: CRISIL Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------- CRISIL Ratings the ratings on bank facilities of Shah Steel Impex Private Limited (SSIPL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 0.5 CRISIL D (Issuer Not Cooperating) Channel Financing 10 CRISIL D (Issuer Not Cooperating) Channel Financing 40 CRISIL D (Issuer Not Cooperating) Letter of Credit 59.5 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SSIPL for obtaining information through letter and email dated March 31, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of SSIPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SSIPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SSIPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. SSIPL, incorporated in 2006, trades in steel products such as hot-rolled coils, cold-rolled coils, and galvanised coils. It is an authorised distributor of JSW Steel Ltd, which accounts for 60% of its trading business. SSIPL is promoted and managed by Mr Ambrish Shah. TITAGARH FIREMA: ICRA Keeps B+ Debt Ratings in Not Cooperating -------------------------------------------------------------- ICRA has retained the Long-Term ratings and Short-Term ratings of Titagarh Firema S.p.A. 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- 50.00 [ICRA]B+ (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Term Loan to remain under 'Issuer Not Cooperating' category Long Term/ 1.50 [ICRA]B+ (Stable)/[ICRA]A4; Short Term- ISSUER NOT COOPERATING; Fund Based/ Rating Continues to remain Non Fund Based- under issuer not cooperating Others 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. Titagarh Firema S.P.A. (TFA) was incorporated in Italy after the acquisition of an Italian company named Firema Transporti SPA (FTS) by Titagarh Wagons Limited (TWL) in July 2015. TWL had initially acquired a 90% stake in TFA through extraordinary administration with the balance 10% stake held by the Adler Pelzar Group. Subsequently, the minority stake was acquired in 2017. VAMSI PHARMA: ICRA Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------- ICRA has retained the Long-Term ratings of Vamsi Pharma 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– 2.80 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category Long-term– 11.25 [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. Vamsi Pharma Private Ltd. (VPPL) is a private limited company incorporated on July 16, 2015. The registered office is located in Banjara Hills, Hyderabad. The company is looking at an annual production capacity of 28,200 kg in manufacturing anti-asthmatics, corticosteroids and pre-mixes. It is promoted by Mr. Kesava Reddy, who has a 29% shareholding in VPPL, Mr. Pratap Reddy, Mr. Madhusudhan Reddy and Dr. Ravindra Purohit. The promoters are currently involved in manufacturing active pharmaceutical ingredients (API) through Vamsi Labs Ltd. (VLL) Solapur (Maharashtra). VKAAO ENTERTAINMENT: Voluntary Liquidation Process Case Summary --------------------------------------------------------------- Debtor: Vkaao Entertainment Private Limited Registered Office: 61, Basant Lok, Vasant Vihar, New Delhi-110057 Principal Office: CTS No. 125, Village Vile Parle, Near W.E Highway, Next to Neelkanth Complex, Sahar Road, Vile Parle (E), Mumbai -400099 Liquidation Commencement Date: May 31, 2023 Court: National Company Law Tribunal New Delhi Bench Liquidator: Bhim Sain Goyal M-215, Rear Ground Floor, Greater Kailash-II, New Delhi-110048 Contact No: 98110 81491 Email id: bsgoyal1@gmail.com Last date for submission of claims: June 30, 2023 WEST INDIA POWER: Ind-Ra Affirms & Withdraws BB+ LT Issuer Rating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed The West India Power Equipments Private Limited's (WIPE) Long-Term Issuer Rating at 'IND BB+' and has simultaneously withdrawn it. The Outlook was Stable. The instrument-wise rating actions are: -- INR395 mil. Fund-based working capital limits* affirmed and withdrawn; -- INR20 mil. Non-fund-based working capital limits** affirmed and withdrawn; and -- INR185 mil. Term loan# due on December 2029 affirmed and withdrawn. *Affirmed at 'IND BB+'/Stable/'IND A4+' before being withdrawn **Affirmed at 'IND A4+' before being withdrawn # Affirmed at 'IND BB+'/Stable before being withdrawn Ind-Ra is no longer required to maintain the ratings, as the agency has received a no-objection certificate from the lender. This is consistent with Ind-Ra's Policy on Withdrawal of Ratings. Ind-Ra will no longer provide analytical and rating coverage for the company. Key Rating Drivers The affirmation reflects WIPE's continued medium scale of operations as indicated by revenue of INR1,949 million in FY22 (FY21: INR1,470 million; FY20: INR1,677 million; FY19: INR2,052 million). The revenue growth in FY22 is attributed to increased demand from the company's existing customers, following the setup of a new unit in Bawal, Haryana. As per FY23 provisional financials, WIPE booked revenue of around INR2,400 million. Further, the management expects the company to achieve revenue of INR2,800 million in FY24, led by an increase in demand for medium and heavy commercial vehicles after a revival in industrial, infrastructure and construction activities post-COVID-19, and financing support from banks. The ratings factor in WIPE's modest EBITDA margins of 6%-9% over FY19-FY22 (FY22: 6.78%; FY21: 8.60%; FY20: 8.20%; FY19: 7.3%), on account of an increase in raw material prices and freight expenses. The management expects the company to have registered EBITDA margin of around 7.5% in FY23 and the margins to sustain at similar levels FY24 onwards, due to a likely improvement in demand. The return on capital employed was 6.4% in FY22 (FY21: 6.1%), due to the capex incurred for the construction of a new property in Bawal. The ratings continue to factor in WIPE's modest credit metrics. The gross interest coverage (operating EBITDA/gross interest expense) improved to 2.24x in FY22 (FY21: 2.21x) and net financial leverage (total adjusted net debt/operating EBITDAR) to 5.47x (5.78x), due to a reduction in short-term borrowings to INR387.72 million (INR403.58 million) given low working capital requirements and an increase in the absolute EBITDA to INR132.21 million (INR126.45 million). Ind-Ra expects the credit metrics to have improved in FY23 and will remain at similar levels in FY24, due to the scheduled repayment of the term loan and a likely increase in its absolute EBITDA. The net leverage remained at 3.8x-5.78x over FY19-FY22, as the company incurred a capex of INR554 million that is yet to be translated into revenue. Liquidity Indicator – Stretched: WIPE's average maximum utilization of its fund-based limits was about 94.63% for the 12 months ended May 2023. The net working capital cycle, although elongated, reduced to 187 days in FY22 (FY21: 292 days) on account of a reduction in the inventory holding period to 239 days (364 days), partially offset by a decrease in the payable period to 100 days (125 days). Any inability to avail a long credit period from its suppliers could exert further pressure on its liquidity. However, the cash flow from operations increased to INR154 million in FY22 (FY21: INR66 million) on account of favorable changes in working capital. However, the free cash flow remained negative despite improving to INR30.83 million in FY22 (FY21: negative INR188.50 million). The cash and cash equivalents stood low at INR2.36 million at FYE22 (FYE21: INR2.18 million). The company has scheduled repayments of INR75.9 million and INR83.7 million in FY24 and FY25, respectively. However, WIPE does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. The ratings are also constrained by WIPE's customer concentration risk, with Maruti Suzuki India Limited accounting for 56% of the company's revenue in FY22 (FY21: 60%). However, the ratings are supported by the promoters' more than three decades of experience in supplying equipment to original equipment manufacturers, leading to established relationship with its clients such as Maruti Suzuki India and Mahindra and Mahindra Limited ('IND AAA'/Stable). Rating Sensitivities Positive: An increase in the scale of operations, along with an improvement in the overall credit metrics and liquidity position, with the net leverage remaining below 3.5x, all on a sustained basis, could lead to be a positive rating action. Negative: A decline in the scale of operations and profitability, along with the company's inability to improve liquidity and/or the credit metrics, all on a sustained basis, would be negative for the ratings. Company Profile Incorporated in 1986, WIPE manufactures automobile parts and accessories primarily for passenger cars. The company provides plastic products wiper systems, wiper arm and blade, wiper linkage, windscreen wash fluid, anti-vibration rubber, and rubber parts, oil gauge, injection rubber hoses, mud flap, and mats. ===================== N E W Z E A L A N D ===================== A & B CONTRACTORS: Court to Hear Wind-Up Petition on July 13 ------------------------------------------------------------ A petition to wind up the operations of A & B Contractors Company Limited will be heard before the High Court at Auckland on July 13, 2023, at 10:00 a.m. The Commissioner of Inland Revenue filed the petition against the company on May 24, 2023. The Petitioner's solicitor is: Cloete Van Der Merwe Inland Revenue, Legal Services 5 Osterley Way Manukau City Auckland 2104 J P HOWCROFT: Creditors' Proofs of Debt Due on July 28 ------------------------------------------------------ Creditors of J P Howcroft Limited, Dream Services Limited, Star Line Hotels Limited and Spirit Whanganui Limited are required to file their proofs of debt by July 28, 2023, to be included in the company's dividend distribution. The companies commenced wind-up proceedings on June 20, 2023. The company's liquidators are: Daran Nair Heiko Draht Nair Draht Limited 97 Great South Road Greenlane Auckland 1051 MOUNTAIN VALLEY: Court to Hear Wind-Up Petition on July 20 ---------------------------------------------------------- A petition to wind up the operations of Mountain Valley Joinery Limited will be heard before the High Court at Christchurch on July 20, 2023, at 10:00 a.m. The Commissioner of Inland Revenue filed the petition against the company on May 11, 2023. The Petitioner's solicitor is: Nanette Cunningham Inland Revenue, Legal Services PO Box 1782 Christchurch 8140 SUITEBOX LIMITED: BDO Tauranga Appointed as Liquidator ------------------------------------------------------ Paul Thomas Manning and Thomas Lee Rodewald of BDO Tauranga on June 26, 2022, were appointed as liquidators of Suitebox Limited. The liquidators may be reached at: C/- BDO Tauranga Limited Level 1, The Hub 525 Cameron Road Tauranga 3110 TOUGH FRANK: Creditors' Proofs of Debt Due on July 21 ----------------------------------------------------- Creditors of Tough Frank Rect Builders Construction NZ 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 22, 2023. The company's liquidators are: Steven Khov Kieran Jones Khov Jones Limited PO Box 302261 North Harbour Auckland 0751 [*] NEW ZEALAND: Liquidations Rising as Economy Worsens ------------------------------------------------------- Rob Stock at Stuff.co.nz reports that liquidations of companies are accelerating in number as more businesses succumb to the toxic mix of a troughing property market, high inflation, spending-shy households, and a tougher stance by Inland Revenue. In the first five months of the year, 699 companies were put into liquidation, Stuff discloses citing data from credit reporting company Centrix. In the same period last year, it was 539, and in the year before 597, but even so, liquidation numbers remain lower than before Covid-19 first made landfall, said Kare Johnstone, chairperson of the Restructuring, Insolvency and Turnaround Association (Ritanz), the industry body for insolvency professionals, Stuff relays. It reminds veteran credit reporting boss Keith McLaughlin of the time after the dust from the 1987 sharemarket crash settled, and Inland Revenue (IR) started taking a tougher line against companies with tax debts. "After the sharemarket crash companies got put under a lot of pressure, and leeway was given to companies to come out the back end of it," Stuff quotes Mr. McLaughlin, managing director of credit reporting company Centrix, which tracks the financial health of the country's companies, as saying. The softly, softly approach couldn't continue indefinitely, and eventually, "the hammer came down" on companies that could not deal with their tax debts. Liquidation pain is not spread evenly across sectors, data from Centrix showed. Construction companies top the liquidation chart, with construction company liquidations up 72% in the first five months of the year compared to the same period last year, Stuff discloses. Stuff says only one sector had a bigger percentage rise, which was retail, but while 55 retail companies went bust in the first five months of the year, 199 construction companies hit the wall. Low levels of mortgage lending, high debt costs, and weak property prices had all fed into hard times for house and apartment builders, but there might be special factors that make them more likely to be put into the hands of liquidators, Stuff adds. ================= S I N G A P O R E ================= BOEING ASIA: Creditors' Proofs of Debt Due on on July 26 -------------------------------------------------------- Creditors of Boeing Asia Pacific Aviation Services 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 liquidator is: David Dong-won Kim c/o KordaMentha Pte Ltd 16 Collyer Quay #30-01 Singapore 049318 FAR EAST: Creditors' Meeting Set for July 12 -------------------------------------------- Far East Distribution Pte Ltd, which is in compulsory liquidation, will hold a first meeting for its creditors on July 12, 2023, at 10:00 a.m., at 50 Havelock Road, #02-767 in Singapore. Agenda of the meeting includes: a. to receive a status update from the liquidators; b. to appoint a Committee of Inspection (“COI”) pursuant to Section 150(1) of the Insolvency, Restructuring and Dissolution Act 2018 (Act 40 of 2018); and c. Any other relevant matters. The liquidators may be reached at: Lau Chin Huat Yeo Boon Keong Far East Distribution c/o Technic Inter-Asia 50 Havelock Road #02-767 Singapore 160050 LOMBARD INTERNATIONAL: Creditors' Proofs of Debt Due on July 28 --------------------------------------------------------------- Creditors of Lombard International Asia Holdings Pte. Ltd. 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 20, 2023. The company's liquidators are: Ong Kok Yeong David c/o Tricor Singapore 80 Robinson Road #02-00 Singapore 068898 MECH-PRODUCT SUPPLIES: Commences Wind-Up Proceedings ---------------------------------------------------- Members of Mech-Product Supplies Pte Ltd, on June 19, 2023, passed a resolution to voluntarily wind up the company's operations. The company's liquidator is: Tan Boon Tin 24 Sin Ming Lane #05-107 Singapore 573970 REVBUILD ASIA: Court to Hear Wind-Up Petition on July 14 -------------------------------------------------------- A petition to wind up the operations of Revbuild Asia Pte Ltd will be heard before the High Court of Singapore on July 14, 2023, at 10:00 a.m. DBS Bank Ltd filed the petition against the company on June 20, 2023. The Petitioner's solicitors are: Shook Lin & Bok LLP 1 Robinson Road #18-00, AIA Tower Singapore 048542 ********* 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. 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