/raid1/www/Hosts/bankrupt/TCRAP_Public/230724.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
Monday, July 24, 2023, Vol. 26, No. 147
Headlines
A U S T R A L I A
ALITA RESOURCES: FIRB Rejects Austroid's Takeover Bid of Miner
CBS RHODES: Second Creditors' Meeting Set for July 26
GOULSHIN SERVICES: First Creditors' Meeting Set for July 28
PAYLAB PTY: First Creditors' Meeting Set for July 26
PLE CONSULTING: First Creditors' Meeting Set for July 28
THINK TANK 2023-2: S&P Assigns B(sf) Rating on Class F Notes
TRIDENT PLASTICS: Administrators Claim "Strong Interest" for Sale
TRITON SMSF 2020: S&P Affirms B+(sf) Rating on Class F Notes
TROJAN ASSET: First Creditors' Meeting Set for July 27
C H I N A
DEER INVESTMENT: S&P Downgrades ICR to 'B-' on Slower Deleveraging
LANZHOU CONSTRUCTION: Moody's Withdraws 'Caa1' Corp. Family Rating
I N D I A
ACCURA ORGANIC: ICRA Keeps B+ Debt Rating in Not Cooperating
AJEET AND COMPANY: CARE Keeps D Debt Ratings in Not Cooperating
APPOLLO DISTILLERIES: ICRA Keeps D Rating in Not Cooperating
APT PACKAGING: CARE Keeps D Debt Ratings in Not Cooperating
ASHIRVAD INDUSTRIES: ICRA Keeps B Debt Ratings in Not Cooperating
BEEKAY AUTO: Ind-Ra Moves BB+ Rating to Non-Cooperating
BEKO DIMON: ICRA Keeps D Debt Ratings in Not Cooperating Category
DIVYA TEXTILE: CARE Keeps B- Debt Rating in Not Cooperating
EKTA TRUST: ICRA Keeps B+ Debt Ratings in Not Cooperating
EMPEE HOTELS: CARE Moves D Debt Rating to Not Cooperating
FATEHPURIA VIDYUT: CARE Keeps B- Debt Rating in Not Cooperating
FINE WOOD: ICRA Withdraws B+ Rating on INR15cr Cash Loan
GLOBAL COAL: Ind-Ra Affirms D LongTerm Issuer Rating
GMR ENERGY: ICRA Lowers Rating INR610cr LT/ST Loan to D
GO FIRST: Gets Aviation Regulator Nod for Resumption of Operations
GO FIRST: Gets Claims Worth US$2.9 Billion From Creditors
GOAL EDUCATIONAL: CARE Keeps B+ Debt Rating in Not Cooperating
GREEN MAPS: Ind-Ra Assigns B+ Term Loan Rating, Outlook Stable
GSR VENTURES: Ind-Ra Cuts LongTerm Issuer Rating to 'BB-'
IL&FS ENVIRONMENTAL: Ind-Ra Withdraws D Issuer Rating
JUMBO BAG: Ind-Ra Affirms BB+ Issuer Rating, Outlook Stable
KAKATIYA INDUSTRIES: Ind-Ra Hikes LongTerm Issuer Rating to 'BB+'
KALP COTSPIN: Ind-Ra Assigns BB- Loan Rating, Outlook Stable
KIRTHI POWER: ICRA Withdraws B+ Rating on INR10cr Loans
LAKSHMI SARASWATHI: Insolvency Resolution Process Case Summary
LAVASA CORP: NCLT Approves INR1,814-Crore Resolution Plan
MA AMBA: CRISIL Keeps B- Debt Rating in Not Cooperating Category
MA SARADA: ICRA Keeps D Debt Ratings in Not Cooperating Category
NATIONAL RICE: CARE Keeps D Debt Rating in Not Cooperating
POSHS METAL: Ind-Ra Hikes LongTerm Issuer Rating to 'BB+'
R. K. TRANSPORT: CARE Lowers Rating on INR7.83cr LT Loan to B-
RAJARATNA MILLS: Ind-Ra Keeps BB Issuer Rating in Non-Cooperating
RAJNISH STEELS: ICRA Keeps B+ Debt Ratings in Not Cooperating
RAM INDUSTRIES: CARE Keeps C Debt Rating in Not Cooperating
RAMA POWER: Ind-Ra Withdraws BB+ LongTerm Issuer Rating
RAMEE HOTELS: Ind-Ra Hikes LongTerm Issuer Rating to 'BB'
RAMSONS CASTING: ICRA Keeps B+ Debt Rating in Not Cooperating
SAINI ALLOYS: Ind-Ra Affirms BB+ Issuer Rating, Outlook Stable
SARAF AGENCIES: Ind-Ra Keeps D Issuer Rating in Non-Cooperating
SARAF TRADING: Ind-Ra Cuts Long Term Issuer Rating to 'B-'
SBL CONSTRUCTION: Ind-Ra Affirms D Long Term Issuer Rating
SEQUEL BUILDCON: Insolvency Resolution Process Case Summary
SHIVANSHU SINTERED: CARE Keeps B- Debt Rating in Not Cooperating
SHORE DWELLINGS: Insolvency Resolution Process Case Summary
SONERI MARINE: ICRA Keeps B+ Debt Ratings in Not Cooperating
SUPREME BUNGALOWS: Insolvency Resolution Process Case Summary
TAYAL POLYPLAST: CARE Keeps B- Debt Rating in Not Cooperating
TIRUMALA HILLS : Insolvency Resolution Process Case Summary
TIRUPATI INDUSTRIES: CARE Keeps D Debt Rating in Not Cooperating
TRIOFAB PRIVATE: Ind-Ra Assigns BB Rating, Outlook Stable
TUAMAN ENGINEERING : Insolvency Resolution Process Case Summary
VENKATESHWARA INDUSTRIES: CARE Keeps B- Rating in Not Cooperating
VENKATESWARA POULTRY: CARE Keeps B- Rating in Not Cooperating
VSN LABORATORIES: CARE Keeps B- Debt Rating in Not Cooperating
YATRA FOR BUSINESS: Ind-Ra Keeps BB+ Rating in Non-Cooperating
ZURI HOTELS: Ind-Ra Assigns BB- Loan Rating, Outlook Stable
M A L A Y S I A
AIRASIA X: Applies to Exit PN17 Status
N E W Z E A L A N D
BEARD BOYS: Court to Hear Wind-Up Petition on Aug. 1
EURODELL LIMITED: Court to Hear Wind-Up Petition on Aug. 11
EZIBUY OPERATIONS: Goes Into Liquidation Owing More Than NZD100MM
OCEAN GEMS: Creditors' Proofs of Debt Due on Aug. 18
QUICK SERVICE: Creditors' Proofs of Debt Due on Sept. 13
RAINBOW CORNER: Creditors' Proofs of Debt Due on Sept. 13
VOYAGE DIGITAL: S&P Hikes ICR to BB- on Tower Sale, Outlook Stable
S I N G A P O R E
DERMATOLOGY & SURGERY: Court to Hear Wind-Up Petition on Aug. 28
KEPPEL LAND: Creditors' Proofs of Debt Due on Aug. 21
LOWI PTE: Court Enters Wind-Up Order
OSTARA INVESTMENTS: Creditors' Proofs of Debt Due on Aug. 21
REVBUILD ASIA: Court Enters Wind-Up Order
S R I L A N K A
SRI LANKA: Could Exit Bankruptcy by September, Says State Minister
T H A I L A N D
STARK CORP: Seeks to Further Delay Report's Deadline
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A U S T R A L I A
=================
ALITA RESOURCES: FIRB Rejects Austroid's Takeover Bid of Miner
--------------------------------------------------------------
Divyanshi Chandra at The Print reports that Australia has
reportedly rejected a bid by Austroid Corporation, a company with
ties to China, to take over Alita Resources Ltd, a struggling
lithium miner.
According to reports, the decision, which was made by the Foreign
Investment Review Board (FIRB), was announced by a spokesperson for
Treasurer Jim Chalmers on July 21.
It is the second time this year that FIRB has blocked a Chinese
company from investing in Australia's critical minerals sector, the
report notes. In February, FIRB reportedly stopped Yuxiao Fund, a
Chinese investor and the largest shareholder of Northern Minerals,
a rare earth miner, from increasing its stake, citing national
interest concerns.
The Print says the move comes amid rising tensions between
Australia and China over trade and security issues. Last week,
Australian Foreign Affairs Minister Penny Wong met with Chinese
Foreign Affairs Chief Wang Yi, who reportedly urged Australia to
provide a "fair, just and non-discriminatory" environment for
Chinese businesses.
The Print relates that the prohibition order prevents Austroid
Corporation from acquiring an additional 90.10 percent of lithium
miner Alita Resources, which would have increased its ownership to
100 percent. Alita Resources owns the Bald Hill Lithium and
Tantalum mine in Western Australia, which reportedly exports to
China.
Mike Que, the director of Austroid Corporation, is the son of
Chinese businessman Que Wenbin, who owns a significant stake in
Sichuan Western Resource, a manufacturer of lithium batteries, the
Print discloses.
Mr. Que also served as the director of China Hydrogen Energy
Limited (CHEL), a Cayman Islands-based business that was
unsuccessful in 2019 to acquire Alita after failing to obtain FIRB
permission.
Meanwhile, Austroid Corporation said it was "shocked and
disappointed" by the Australian government's decision and warned
that it could have negative consequences for the Bald Hill mine's
operations, The Print adds.
About Alita Resources
Alita Resources Limited operates as a mineral exploration and
excavation company. The Company explores and produces lithium and
tantalum concentrates. Alita Resources offers its services in
Australia.
Robert Michael Kirman and Robert Conry Brauer of McGrathNicol were
appointed as administrators of Alita Resources Limited, Lithco NO.2
Pty Ltd, and Tawana Resources Pty Ltd on Dec. 4, 2020.
CBS RHODES: Second Creditors' Meeting Set for July 26
-----------------------------------------------------
A second meeting of creditors in the proceedings of CBS Rhodes Pty
Ltd, CBS Group Investments Pty Ltd and CBS Leasing Pty Limited has
been set for July 26, 2023 at 10:30 a.m. at the offices of Worrells
at Level 1, 160 Brisbane Street in Ipswich and via Microsoft Teams
video conferencing.
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 25, 2023 at 5:00 p.m.
Adam Francis Ward of Worrells was appointed as administrator of the
company on June 21, 2023.
GOULSHIN SERVICES: First Creditors' Meeting Set for July 28
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of Goulshin
Services Pty Ltd will be held on July 28, 2023, at 9:00 a.m. at the
offices of SV Partners at 22 Market Street in Brisbane and via
Microsoft Teams virtual meeting.
Anne Meagher and Terry Grant van der Velde of SV Partners were
appointed as administrators of the company on July 18, 2023.
PAYLAB PTY: First Creditors' Meeting Set for July 26
----------------------------------------------------
A first meeting of the creditors in the proceedings of Paylab Pty
Ltd will be held on July 26, 2023, at 3:00 p.m. via virtual meeting
only.
Bruce Gleeson and Daniel Robert Soire of Jones Partners Insolvency
& Restructuring were appointed as administrators of the company on
July 26, 2023.
PLE CONSULTING: First Creditors' Meeting Set for July 28
--------------------------------------------------------
A first meeting of the creditors in the proceedings of PLE
Consulting Pty Ltd will be held on July 28, 2023, at 10:00 a.m. at
the offices of JLA Insolvency & Advisory at Level 13, 50 Margaret
Street in Sydney.
Jamieson Louttit of JLA Insolvency & Advisory was appointed as
administrator of the company on June 18, 2023.
THINK TANK 2023-2: S&P Assigns B(sf) Rating on Class F Notes
------------------------------------------------------------
S&P Global Ratings assigned its ratings to seven of the nine
classes of small-ticket commercial mortgage-backed, floating rate,
pass-through notes issued by BNY Trust Co. of Australia Ltd. as
trustee of Think Tank Commercial Series 2023-2 Trust.
Think Tank Commercial Series 2023-2 Trust is a securitization of
loans to commercial borrowers, secured by first-registered
mortgages over Australian commercial or residential properties
originated by Think Tank Group Pty Ltd. (Think Tank).
The ratings reflect:
-- S&P's view of the credit risk of the underlying collateral
portfolio, including the fact that this is a closed portfolio,
which means no further loans will be assigned to the trust after
the closing date.
-- S&P's view that the credit support is sufficient to withstand
the stresses it applies. This credit support comprises note
subordination for each class of rated note.
-- That the transaction's cash flows can meet timely payment of
interest and ultimate payment of principal to the noteholders under
the rating stresses. Key factors are the level of subordination
provided, the condition that a minimum margin will be maintained on
the assets, an amortizing liquidity facility sized at 3.0% of the
outstanding balance of the rated notes, and the principal draw
function.
-- The extraordinary expense reserve of A$250,000, funded from day
one by Think Tank, available to meet extraordinary expenses. The
reserve will be topped up via excess spread if drawn.
-- The legal structure of the trust, which has been established as
a special-purpose entity and meets our criteria for insolvency
remoteness.
Ratings Assigned
Think Tank Commercial Series 2023-2 Trust
Class A1, A$300.00 million: AAA (sf)
Class A2, A$72.50 million: AAA (sf)
Class B, A$41.50 million: AA (sf)
Class C, A$33.50 million: A (sf)
Class D, A$23.00 million: BBB (sf)
Class E, A$12.50 million: BB (sf)
Class F, A$9.00 million: B (sf)
Class G, A$3.00 million: Not rated
Class H, A$5.00 million: Not rated
TRIDENT PLASTICS: Administrators Claim "Strong Interest" for Sale
-----------------------------------------------------------------
Matt Ogg at Business News Australia reports that the voluntary
administrators for Adelaide-based wheelie bin manufacturer Trident
Plastics emphasise trading is "business as usual" as they work
towards finding a way forward for the company and its rotational
moulding subsidiary Tranmor Enterprises within the next two to
three weeks.
Daniel Juratowitch and Rachel Burdett of restructuring advisory
firm Cor Cordis were appointed as administrators in late June for
the company, which is one of largest custom moulders in Australia
with key products including wheelie bins and skips, BNA notes.
The administrators have determined the two companies owe
approximately AUD16.77 million to unrelated secured creditors and
close to AUD21.5 to related secured creditors.
A further AUD10.3 million is owed to unsecured creditors, as well
as AUD3.57 million in employee entitlements, BNA discloses.
"As part of the voluntary administration process, we undertake an
independent sales campaign for both entities to determine the best
outcome for the business . . . this could be a sale of business, or
sale of assets and may also involve a deed of company arrangement,"
the administrators said in an update on July 21.
"The sales campaign has resulted in strong interest from the market
with over 25 parties, independent of existing management,
expressing their interest and we are now progressing through the
offer stage.
"Due to the high volume of interest, the Administrators have
requested an extension from the Supreme Court to progress detailed
discussions."
BNA, citing a report on company activities and property (ROCAP),
discloses that the two companies have combined assets worth more
than AUD45.3 million, most of which pertains to Trident Plastics
including AUD26.5 million worth of plant and equipment, almost AUD6
million worth of inventory, and nearly AUD6 million the companies
are owed by debtors.
Plastic products have been made at the current St Clair plant since
the mid-1980s, and the formation of Trident Plastics in 1995
allowed the business to expand into manufacturing, the report
says.
The business ramped up in 2020 with the purchase of assets from
another Adelaide company Maxiplas, complementing its existing
operation with large rotational moulding machines and additional
injection moulding machines, together with water tanks and water
retention systems for both residential, commercial, and
agricultural use.
Affiliated entity Tranmor Enterprises operates the rotational
moulding business using the trademarked Maxiplas name.
Daniel Juratowitch and Rachel Burdett of restructuring advisory
firm Cor Cordis were appointed Voluntary Administrators of Trident
Plastics (SA) Pty Ltd and Tranmor Enterprises Pty Ltd on 26 June
2023.
Trident Plastics is one of the largest custom moulders in Australia
offering a full suite of services from development and design, to
manufacturing of plastics products catering to a diverse range of
clients. The group employs approximately 160 employees.
TRITON SMSF 2020: S&P Affirms B+(sf) Rating on Class F Notes
------------------------------------------------------------
S&P Global Ratings raised its ratings on three classes of notes
issued by Perpetual Corporate Trust Ltd. as trustee for Triton SMSF
Bond Trust 2020 Series 1. At the same time, S&P affirmed its
ratings on six classes of notes. The transaction is a
securitization that entirely comprises residential mortgage loans
to self-managed superannuation funds (SMSFs) originated by Columbus
Capital Pty Ltd.
The rating actions reflect S&P's view of the credit risk of the
pool, which has been amortizing in line with our expectation.
Credit support provided to each class of rated notes in percentage
terms has increased as the pool paid down. This credit support
comprises note subordination for all rated notes. Current
loan-to-value ratios across the pool have been slowly declining,
lowering our expectation of loss for the pool.
As of June 30, 2023, the pool has a balance of about A$283.9
million and a pool factor of about 71%. The pool's weighted-average
loan-to-value ratio is 56.5% and weighted-average seasoning is 44
months.
Since close, the arrears performance of the pool has been strong
compared with the Standard & Poor's Performance Index for prime
loans. As of June 30, 2023, 0.14% of the pool is more than 30 days
in arrears. There also have been no losses to date.
A key rating stress applied as part of our cash flow modeling was
the assumed loan prepayment rates, which are lower for Columbus
SMSF loans than with standard prime RMBS. S&P Global Ratings has
considered various prepayment rates specific to Columbus SMSF loans
when modeling the cash flows of the underlying mortgage loans.
Because the notes are currently paying on a sequential basis,
credit support will continue to build up over time for the notes,
until the pro-rata tests are met. Once the pro-rata triggers are
met, principal would be passed through to each class of notes on a
pari passu basis, except for the class G notes' allocated
principal, which is paid to the class F notes until the class F
notes are fully repaid, followed by the remaining subordinated
notes once the class F notes have fully repaid. Therefore, the
class F notes will continue to benefit from an increase in the
percentage of credit support provided, as under a pro rata
structure.
S&P said, "Our expectation is that the various mechanisms to
support liquidity within the transaction, including an amortizing
liquidity facility, principal draws, and a loss reserve that builds
up from excess spread, are sufficient under our cash flow stress
assumptions to ensure timely payment of interest."
A fixed- to floating-rate interest-rate swap is provided by
National Australia Bank Ltd. to hedge the mismatch between receipts
from any fixed-rate mortgage loans and the variable-rate notes.
Ratings Raised
Triton SMSF Bond Trust 2020 Series 1
Class B: to AAA (sf) from AA+ (sf)
Class C: to AA (sf) from AA- (sf)
Class D: to A (sf) from A- (sf)
Ratings Affirmed
Triton SMSF Bond Trust 2020 Series 1
Class A1-AU: AAA (sf)
Class A1-3Y: AAA (sf)
Class A2: AAA (sf)
Class AB: AAA (sf)
Class E: BB+ (sf)
Class F: B+ (sf)
TROJAN ASSET: First Creditors' Meeting Set for July 27
------------------------------------------------------
A first meeting of the creditors in the proceedings of Trojan Asset
Management Pty Ltd will be held on July 27, 2023, at 12:00 p.m. at
the offices of via Zoom teleconference.
Richard Rohrt of Kennedy Ryan Advisory was appointed as
administrator of the company on July 17, 2023.
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C H I N A
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DEER INVESTMENT: S&P Downgrades ICR to 'B-' on Slower Deleveraging
------------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit ratings on
Deer Investment Holdings Ltd., a holding company of HCP Global Ltd.
and controlled by private equity firm Carlyle Group, to 'B-' from
'B'.
The stable rating outlook on Deer reflects S&P's view that HCP will
maintain its prominent market position in the rigid plastic
packaging industry, and that the combined entities will maintain
adequate liquidity over the next 12 months.
S&P said, "We downgraded Deer because we believe its deleveraging
will be slower than our previous expectation, with the ratio of
debt to EBITDA to remain above 7.0x in 2023.Weak consumer
sentiment, declining sales, and frequent production disruptions as
a result of the pandemic hindered the company's deleveraging in
2022. With adjusted EBITDA 32% below our expectation, the company's
adjusted debt-to-EBITDA ratio for 2022 was above 10x.
"As the impact of the pandemic subsides, demand for color cosmetics
and skincare products will likely improve in Asia this year, while
sales in Europe will continue to grow. We also expect the company
to gain wallet share from blue chip customers.
"Improved sales, higher utilization of plants, and softer raw
material costs will help HCP improve profitability, in our
assessment. As a result, we estimate EBITDA will increase 38%,
leading to a debt-to-EBITDA ratio of 8.0x-8.5x in 2023.
Nevertheless, such improvement is slower than what we previously
expected and exceeds our downgrade trigger of 7.0x.
"We project Deer's topline will grow by 8%-10% in 2023 on improved
demand and operating conditions. As the impact of the pandemic
subsides, sales of color cosmetics and skincare products should
increase as travel and social activities return to normal. Such
improvement will help customers use up inventory and drive new
orders for Deer." Program awards in the first five months of 2023
rose nearly 40% year on year, indicating a return in demand. This
underpins revenue visibility for the company.
Revenue for Deer declined by 8.7% in 2022 amid lower orders from
major customers, who suffered from a decline in the retail sector
due to strict lockdowns in China and a sudden surge in COVID-19
cases at the end of 2022. High downstream inventory levels
compounded the company's challenges and reduced restocking needs
for major customers who piled up inventory at the start of 2022 in
anticipation of a return in demand.
S&P said, "We anticipate a recovery in Deer's EBITDA margin on
improving efficiency, lower raw material costs, and a reduction in
pandemic-related expenses. The company's EBITDA margin will recover
by 4-5 percentage points to 20%-21% in 2023, in our estimation.
Operating efficiency will improve after Deer closed and relocated
its Suzhou plant in 2022, and higher production volumes. We
anticipate a material decline in pandemic-related expenses in 2023.
These included delayed deliveries, costs due to factory lockdowns,
higher freight rates, and additional sanitation costs, which
altogether totaled US$7 million-US$8 million in 2022."
Deer is also implementing various methods to protect its profit
margins, such as global sourcing, and upgrading production
management systems in Germany and Mexico. These factors, together
with falling raw material prices, will likely lift the company's
EBITDA margin to above 20%. Its gross margin has improved by 3-4
percentage points year on year in the first five months of 2023.
S&P said, "Deer's liquidity buffer should remain sufficient for the
next 12 months, despite a weaker financial profile than we
expected. The company's liquidity position will remain adequate
over the next 12 months, in our view, on account of low loan
amortization, and reasonable capital expenditure and working
capital requirements. Cash on hand and a committed revolving credit
facility of US$75 million offer liquidity sources enough to meet
daily operational needs. It also maintained sufficient headroom
(above 15%) over a springing first-lien net leverage covenant of
7.85x, which only applies when the company draws more than US$30
million from the revolving facility.
"The stable rating outlook on Deer reflects our view that the
company (via HCP) will maintain its prominent position in the
global niche rigid plastic packaging (RPP) market for the beauty
industry for the next one to two years. Demand recovery and
improved efficiency should support the company's EBITDA growth.
"This will mitigate the debt increase from negative free operating
cash flow, and help the company reduce leverage. The outlook also
reflects our view that the company's liquidity position will remain
adequate over the next 12 months.
"We could downgrade Deer if the company's leverage deteriorates
materially compared with our base-case assumptions such that we
consider its capital structure to be unsustainable. This could
happen if we expect its EBITDA interest coverage to fall below 1.0x
or the company's covenant cushion becomes tight." Possible
scenarios for a downgrade include:
-- Limited improvement in revenue and profitability due to a
delayed recovery in demand or operational missteps.
-- The company makes large acquisitions or shareholder returns
that lead to a material increase in debt.
S&P could raise the rating on Deer if the company can sustain an
EBITDA margin above 17% while reducing leverage below 7.0x
sustainably. This could happen if it expands its revenue scale,
improves profitability, and controls capital spending such that it
can turn free operating cash flow positive.
ESG credit indicators: E-3, S-2, G-3
S&P said, "Governance is a moderately negative consideration in our
credit rating analysis of Deer. Our assessment of the company's
financial risk profile as highly leveraged reflects corporate
decision-making that prioritizes the interests of the controlling
owners, as is the case for most rated entities owned by private
equity sponsors. Our assessment also reflects generally finite
holding periods and a focus on maximizing shareholder returns.
"Environmental factors are also a moderately negative consideration
in our credit rating analysis. Like plastic-packaging peers, HCP's
environmental risk is higher than for companies that use more
sustainable materials. Risks include waste concerns, changing
consumer preferences, and tightening recyclability regulations on
plastic packaging. HCP has been developing sustainable packaging
solutions for its customers. Currently 35% of the company's
products are made using recycled or reusable materials, versus the
industry average of less than 20%. We expect the ratio will
continue to increase over the next two to three years."
LANZHOU CONSTRUCTION: Moody's Withdraws 'Caa1' Corp. Family Rating
------------------------------------------------------------------
Moody's Investors Service has withdrawn Lanzhou Construction
Investment (Holding) Group Co., Ltd.'s Caa1 corporate family
rating.
The outlook prior to the withdrawal was negative.
RATINGS RATIONALE
Moody's has decided to withdraw the rating for its own business
reasons.
COMPANY PROFILE
Established in 2016, Lanzhou Construction Investment (Holding)
Group Co., Ltd. is 100% owned by the Lanzhou State-owned Asset
Supervision and Administration Commission through a parent
intermediary, Lanzhou Investment (Holdings) Group Co., Ltd. The
company mainly engages in urban infrastructure construction,
shantytown redevelopment, utilities, public services and
transportation in Lanzhou city.
As of the end of 2022, the company reported total assets of RMB142
billion and a total revenue of RMB7.6 billion.
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I N D I A
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ACCURA ORGANIC: ICRA Keeps B+ Debt Rating in Not Cooperating
------------------------------------------------------------
ICRA has retained the Long-Term and Short-term rating of Accura
Organic Foods in the 'Issuer Not Cooperating' category. The ratings
are denoted as [ICRA]B+(Stable)/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 1.29 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Short Term- 1.80 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Short Term- 10.00 [ICRA]A4 ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Incorporated in 2008 as a partnership firm, Accura Organic Foods
('AOF') is engaged in processing and exporting sesame seeds and
other agro commodities, including soyabean, linseed and organic
amaranth. AOF is promoted by the Vachhani family. One of its
partners, Mr. Deepak Vachhani, has an extensive experience in the
business of sesame seed processing and export.
AJEET AND COMPANY: CARE Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Ajeet and
Company (AC) continue to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ 14.00 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
Short Term Bank 3.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated July 19, 2022,
placed the rating(s) of AC under the 'issuer non-cooperating'
category as AC had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. AC continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
June 4, 2023, June 14, 2023, June 24, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Established in 1950 as proprietary concern & later converted into
partnership concern, Ajeet & Company (AC) is engaged in trading of
whey protein products and timber (teakwood/hardwood) products.
Further since FY15 the entity has started more concentrating
towards trading of whey protein products only which are imported
directly from USA a nd timber trading wherein it imports (teakwood
/ hardwood) from Myanmar, Southeast Asian countries, African
countries & Central & South American countries.
APPOLLO DISTILLERIES: ICRA Keeps D Rating in Not Cooperating
------------------------------------------------------------
ICRA has retained the long-term ratings of Appollo Distilleries
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– 75.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
ADPL owns and operates a brewery plant having an installed capacity
of 50,000 KLPA (kilo liter per annum) at Billakuppam, Gummidipundi,
Tamil Nadu (TN). The commercial operation of ADPL's manufacturing
facility commenced in May 2012. ADPL is a subsidiary of Empee
Distilleries Limited (part of Empee group of companies).
APT PACKAGING: CARE Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of APT
Packaging Limited (APT) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.44 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 3.20 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated February 21,
2020, placed the rating of APT under the 'issuer non-cooperating'
category as APT had failed to provide information for monitoring of
the rating as agreed to in its Rating Agreement. APT continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and emails dated June 2,
2023, May 23, 2023, May 13, 2023, etc.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Analytical approach: Standalone
Detailed description of the key rating drivers:
At the time of last rating on June 27, 2022 the following was the
rating weakness (updated for the information available from
Company's website and stock exchange etc.):
* Delay in debt servicing obligations: As per the FY22 Audit
report, there have been ongoing delays in servicing of debt
obligations. The delays were on account of the stretched liquidity
position of the company.
APT (erstwhile Anil Chemicals & Industries) was incorporated in
1980 and is engaged in the manufacturing of Co-Extruded plastic
tubes in variety of shapes, sizes and different colours ranging
from 10 ml to 300 ml fill size. The company's manufacturing
operations are carried out from the plants based in Aurangabad,
Maharashtra and Laksar, Haridwar, Uttarakhand. The combined
installed capacity is approx. 2.3 lakh pieces per day.
ASHIRVAD INDUSTRIES: ICRA Keeps B Debt Ratings in Not Cooperating
-----------------------------------------------------------------
ICRA has retained the long-term and short-term ratings of Ashirvad
Industries & Infrastructure 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- 0.40 [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) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Short Term- 10.00 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
Others to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Established in 1998 as a partnership firm, Ashirvad Industries &
infrastructure ('AII' or 'the firm') isin to cotton ginning
business and act as a toll collection agent on state and national
highways in Gujarat. In addition to this, the firm has also
commenced trading in currency derivative instruments from FY2015
onwards. AII's manufacturing facility is located at Rajkot in
Gujarat and is equipped with 18 ginning machines and 1 pressing
machine with total production capacity to manufacture ~200 cotton
bales per day. Currently, the firm is operating two toll collection
projects in the state of Gujarat. The partners have been associated
with toll collection activity for over fifteen years with number of
projects successfully completed.
BEEKAY AUTO: Ind-Ra Moves BB+ Rating to Non-Cooperating
-------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
Beekay Auto Private Limited to the non-cooperating category as per
Ind Ra's policy on Issuer Non-Cooperation, following non-submission
of No Default Statement continuously for 6 months despite
continuous requests and follow-ups by the agency and also IND-Ra's
inability to validate timely debt servicing through other sources
it considers reliable. No Default Statement in the format
prescribed by SEBI is required to be shared by the issuer every
month as a confirmation that all financial obligations are being
serviced on time. 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 actions are:
-- Issuer Rating migrated to non-cooperating category with IND
BB+ (Issuer Not Cooperating) rating;
-- INR500 mil. Fund Based Working Capital Limit migrated to non-
cooperating category with IND BB+ (Issuer Not Cooperating)/
IND A4+ (Issuer Not Cooperating) rating;
-- INR10 mil. Non-Fund Based Working Capital Limit migrated to
non-cooperating category with IND A4+ (Issuer Not
Cooperating) rating; and
-- INR450 mil. Term loan due on Aug 31, 2034 migrated to non-
cooperating category IND BB+ (Issuer Not Cooperating) rating.
Company Profile
Incorporated in 1995, BAPL is an authorized dealer for Maruti
Suzuki India Limited's cars. The company has five showrooms in West
Bengal, one each in Siliguri, Burdwan and Behrampur, and two in
Asansol. It also has six workshops in West Bengal.
BEKO DIMON: ICRA Keeps D Debt Ratings in Not Cooperating Category
-----------------------------------------------------------------
ICRA has retained the Long-term and Short-Term ratings of Beko
Dimon Fishing Co in the 'Issuer Not Cooperating' category. The
ratings are denoted as [ICRA]D/ [ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 12.00 [ICRA]D; ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain under
'Issuer Not Cooperating'
Category
Short-term– 15.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Beko Dimon Fishing Company was established in the year 2003. It is
registered as a 100% Export Oriented Unit (EOU). The firm is into
manufacturing of fishing hooks, snoods, lines, swivels,
monofilament lines and rubber tubing for the long line fishing
industry and for other commercial and non-commercial fishing
purposes. The firm has its manufacturing 2 facility in Nilgiris
with a built up area of approximately 1830 sq m. in 1.0 acre of
land. It has a capacity to manufacture 20,000 to 25,000 hooks per
day which would increase to ~200,000 hooks per day with the
installation of the new machinery.
DIVYA TEXTILE: CARE Keeps B- Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Divya
Textile Industries (DTI) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 13.18 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated July 5, 2022,
placed the rating(s) of DTI under the 'issuer non-cooperating'
category as DTI had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. DTI continues to be
non -cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 21, 2023, May 31, 2023, June 10, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Surat (Gujarat) based Divya Textile Industries (DTI) was
established in February, 2019 as a proprietorship firm by Mr.
Sushil Fatehpuria to undertake manufacturing of Grey Fabric. DTI
has set up a plant in Telangana with an installed capacity of 21.84
lakh meters of grey fabric per annum. DTI has commenced commercial
operations from FY20. Mr. Sushilkumar Fatehpuria is
director in Divya Fashion Private Limited (DFPL, engaged in
Manufacturing of Ladies wear Sarees) since last 10 years. DTI
customer base mainly consist wholesalers located in Hyderabad,
Andhra Pradesh & Telangana region. The key raw material i.e.
polyester yarn will be procured entirely from domestic market
(mainly Surat).
EKTA TRUST: ICRA Keeps B+ Debt Ratings in Not Cooperating
---------------------------------------------------------
ICRA has retained the Long-Term and Short-term rating of Ekta Trust
in the 'Issuer Not Cooperating' category. The ratings are denoted
as [ICRA]B+(Stable)/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 5.08 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term/ 2.92 [ICRA]B+ (Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain
under issuer not cooperating
category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Ekta Trust, Navi Metral, Gujarat was formed through a trust Deed
dated 12th March 1991. The trust has been registered as a public
trust under the Bombay Public Trust Acts, 1950 bearing Registration
No. E/1966/Sabarkantha. The objectives of the trust as stated in
the trust deed include as a main object the setting up of
educational institutions to serve the needs of students. Trust
started his first activity in the year 2004-05 by establishing
P.T.C. & B. Ed. College then started Engineering, BCA and Nursing
College in the year 2011-12 and Diploma College and B.Sc. College
from the year 2012-13.The engineering courses are offered under
“Arrdekta Institute of Technology", B. Ed course is run under
"Ekta College of Institute", PTC is run under “Ekta Trust PTC
College", nursing course is run under “Ekta Nursing School &
College", B. Sc isrun under "Arrdekta Institute of Science" and BCA
is run under “Arredekta Institute of B.C.A." by Ekta Trust.
EMPEE HOTELS: CARE Moves D Debt Rating to Not Cooperating
---------------------------------------------------------
CARE Ratings has migrated the rating for the bank facilities of
Empee Hotels Ltd. (EHL) to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non Convertible
Debentures 185.00 CARE D; ISSUER NOT COOPERATING
Rating moved to ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. has been seeking information from EHL to monitor
the rating(s) vide letter/e-mail communications dated July, 12,
2023, June 22, 2023, June 8, 2023, May 24, 2023, May 11, 2023, May
5, 2023, May 2, 2023, and April 28, 2023. However, despite repeated
requests, the company has not provided the requisite information
for monitoring the ratings.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating. The rating o n Empee Hotels Limited's proposed NCDs will
now be denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Analytical approach: Standalone
Outlook: Not Applicable
Detailed description of the key rating drivers
At the time of last rating on June 23, 2022, the following were the
rating strengths and weaknesses.
Key Rating Weakness
* Ongoing delays in debt obligations to Edelweiss Asset
Reconstruction Company (EARC): On account of consistent liquidity
issues, the company has delayed meeting the debt obligations for
the period of FY20, FY21 and FY22. The company entered into
one-time settlement (OTS) agreement with the lender (EARC) during
March 2022, as per which the company was liable to pay INR205
crore, by May 31, 2022. The company could pay only INR17 crore out
of the total outstanding amount as on date (June 17, 2022). The
proceeds from the proposed NCD would be utilized towards settling
the amount of OTS and the balance amount is proposed to be paid by
promoters. However, EARC filed a petition against Empee Hotels in
NCLT invoking Section 7 of the IBC. The final decision of the
petition is still pending.
* Weak Financial Profile: The company has a weak financial risk
profile characterized by high leverage and poor debt coverage
indicators. Going forward, EHL's cash flow from hotel operations
would not be sufficient to meet the debt obligations related to
proposed NCDs. Hence, there would be significant reliance on
promoters for timely fund infusion to repay the quarterly interest
obligations and bullet principal repayment at the end of two years.
The promoters are expected to monetize some of their assets or
develop another land in JV for a commercial real estate project to
meet the debt obligations related to proposed NCDs.
Key Rating Strengths
* Experienced promoters: EHL is promoted by Mr. MP Purshothaman who
is also serving as Chairman of EHL. Mr. MP Purshothaman has
extensive experience of over five decades in hospitality business
and has also held the position of President of Tamil Nadu Hotels
and Restaurants Association for close to 22 years. Mrs. Nisha
Purshothaman, who is serving as a Managing Director of EHL also has
a rich experience of over 3 decades in hoteling and hospitality
business.
* Favorable location of hotels and strong Brand image of 'Hilton':
The hotel is located in Ekkaduthangal, which is proximity to the
Chennai airport and IT clusters of Chennai. Chennai has the sixth
busiest airport in the country (based on passenger traffic in
2021-22), and also enjoys the status of being the second largest
exporter of Information technology and business process outsourcing
(BPO) services, after Bengaluru, in India. Thus, owing to the
hotel's favorable location, EHL benefits from an influx of business
and leisure travelers.
Further, EHL has a long-term association with Hilton group, UK
which is one of the largest hospitality brands across the world and
has a stellar reputation among the international business and
leisure travelers. The hotel is operated by the name 'Hotel Hilton'
and is fully managed by the Hilton group. In consideration, Hilton
charges from EHL 2% of revenue as management fees and a further 8%
of gross operating profit as incentive fees, which is calculated as
per defined terms, for managing the hotel. Further EHL also shares
2% of revenue as group service benefit fees (GSB) with Hilton.
Empee Hotels Ltd (EHL) was incorporated in 2004 primarily to
develop a 5-star deluxe hotel project in Chennai. The company
commenced its operations in 2011. EHL is promoted by Mr.M.P.
Purushothaman, Chairman of Empee group of companies. EHL currently
owns a 204 rooms 5-star deluxe category hotel in the name of
'Hilton, Chennai' at Ekkaduthangal, located within
proximity to Chennai International Airport and IT clusters in
Chennai. The major shareholding in EHL is held by Empee
International Hotels and Resorts Ltd (EIHRL), a closely held
company promoted by the Empee group. The Hotel is fully managed by
the Hilton Group, UK in consideration of management, incentive fee
and group sharing fees.
FATEHPURIA VIDYUT: CARE Keeps B- Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Fatehpuria
Vidyut Udyog Private Limited (FVUPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.31 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated July 04, 2022,
placed the rating(s) of FVUPL under the 'issuer non-cooperating'
category as FVUPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. FVUPL continues to
be non-cooperative despite repeated requests for submission of
information through e -mails, phone calls and a letter/email dated
May 20, 2023, May 30, 2023, June 9, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Jaipur (Rajasthan) based Fatehpuria Vidyut Udyog Private L imited
(FVUPL) was incorporated in 1988 by Mr. Pramod Fatehpuria along
with other family members. Initially, FVUPL was mainly engaged in
the business of manufacturing of CRGO based transformer core but in
FY18, it undertook a project for manufacturing of amorphous
transformer core and discontinue CRGO based transformer core. The
company has entered into agreement with Hitachi Metals Limited for
transfer of technology for
manufacturing amorphous transformer core and has started commercial
operations from March 2018.
FINE WOOD: ICRA Withdraws B+ Rating on INR15cr Cash Loan
--------------------------------------------------------
ICRA has withdrawn the ratings assigned to the bank facilities of
Fine Wood Products Private Limited at the request of the company
and based on the No Objection Certificate/Closure Certificate
received from its banker. However, ICRA does not have information
to suggest that the credit risk has changed since the time the
rating was last reviewed. The Key Rating Drivers, Liquidity
Position, Rating Sensitivities, Key financial indicators have not
been captured as the rated instruments are being withdrawn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 15.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Withdrawn
Cash Credit
Long Term- 3.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Withdrawn
Term Loan
Short Term- 15.00 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Withdrawn
Others
Issuer Rating - [ICRA]B+(Stable); ISSUER NOT
COOPERATING; Withdrawn
FWPPL was initially set up as a proprietorship entity by the Garg
family in 1999 and was reconstituted as a private limited company
in November 2008. The company is involved in manufacturing of
plywood and veneer. Its factory is located in Pondicherry. The
company uses hardwood logs for manufacturing plywood. The majority
of hardwood logs are imported from various countries and a small
quantity from the domestic market. FWPPL mainly sells its products
in South India with small percentage of sales in other regions of
the country. The Group has also setup a veneer manufacturing
facility in Myanmar in 2014 in the name of FPMPL to cater the new
market. FPMPL is a joint venture between the two Group companies
– viz. Fine Wood Products Pvt. Ltd. with 60% stake and Everest
Ply& Veneers Pvt. Ltd. with 40% stake in FPMPL.
GLOBAL COAL: Ind-Ra Affirms D LongTerm Issuer Rating
----------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Global Coal and
Mining Private Limited's (GCMPL) Long-Term Issuer Rating at 'IND
D'.
The instrument-wise rating actions are:
-- INR550 mil. Fund-based limits (Long-term/Short-term) affirmed
with IND D rating;
-- INR9.510 bil. Non-fund-based limits (Long-term/Short-term)
affirmed with IND D rating; and
-- INR1.587 bil. Term loan (Long-term) due on November 2025
affirmed with IND D rating.
Key Rating Drivers
The affirmation reflects GCMPL's ongoing delays in debt servicing
during the last three months ended May 2023 based on the
information received by Ind-Ra from the lending bank and FY23
provisional financials shared by the company.
Rating Sensitivities
Positive: Timely debt servicing and the use of working capital
facilities within the sanctioned limits for at least three
consecutive months could be positive for the ratings.
Company Profile
Incorporated in 1998, GCMPL is engaged in coal beneficiation,
transportation and logistics of coal, and coal trading in
mineral-rich states, Odisha, Andhra Pradesh and Telangana. It has a
total installed capacity of 10 million tons per annum (mtpa)
distributed among its four coal washeries located in Odisha at
Talcher (4.0mtpa) and IB Valley (3.5mtpa), and in Telangana at
Ramagundam (1mtpa) and Manuguru (1.5mtpa).
GMR ENERGY: ICRA Lowers Rating INR610cr LT/ST Loan to D
-------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of GMR
Energy Limited, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term/ 610.00 [ICRA]D/[ICRA]D; ISSUER NOT
Short Term COOPERATING; Rating downgraded
Non Fund Based from [ICRA]B (Stable)/[ICRA]A4
Facilities and continues to remain under
'Issuer Not Cooperating'
Category
Rationale
The rating downgrade reflects Delay in Debt Repayment as mentioned
in publicly available sources.
The rating is based on limited information on the entity's
performance since the time it was last rated in May 2022. The
lenders, investors and other market participants are thus advised
to exercise appropriate caution while using this rating as the
rating may not adequately reflect the credit risk profile of the
entity, despite the downgrade".
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
GMR Energy Limited was originally incorporated as Tanir Bavi Power
Company Limited (TBPCL) and promoted by foreign investors in
October 1996. Subsequent to TBCPL's acquisition by GMR
Infrastructure Limited (GIL), the name of the company was changed
to GMR Energy Limited in 2003. GMR Energy earlier owned and
operated a barge-mounted, naphtha-based combined cycle plant of
capacity 235 MW near Mangalore in the state of Karnataka. The plant
commenced commissioning in June 2001 and sold electricity to two of
the Karnataka State electricity distribution companies - namely
Bangalore Electricity Supply Company Ltd and Mangalore Electricity
Supply Company Ltd as per the terms of a PPA, which expired in June
2008. Since the expiry of the PPA, GMR Energy has been operating
the plant on 2 merchant mode. In FY2011, GMR Energy transitioned to
gas-based operations at a cost of approx. Rs.605 crore and the
plant was relocated to Kakinada in Andhra Pradesh. With the
induction of Tenaga, the company has a portfolio of coal-based,
gas-based and renewable (hydro & solar) power projects, with a
total capacity of 4,630 MW. The portfolio comprises an operating
capacity of 2,300 MW (1,650MW of coal-based, 623MW of gas-based and
25MW of solar capacity. Apart from this, projects with an aggregate
generation capacity of 2,330 MW are under various stages of
completion/development in India and Nepal.
GO FIRST: Gets Aviation Regulator Nod for Resumption of Operations
------------------------------------------------------------------
New India Express reports that the grounded carrier, Go First, may
chart history and become the first airline to bounce back after
suspending operations as India's civil aviation regulator
Directorate General of Civil Aviation (DGCA) has conditionally
accepted its resumption plan which was submitted late last month.
According to the Express, the regulator has set conditions such as
making interim funding available for operations and getting its
flight schedule approved to resume operations. DGCA has approved Go
First's plan to restart operations with 15 aircraft and 114 daily
flights.
The Express relates that DGCA has directed the airline to ensure
compliance with all the "applicable regulatory requirements, ensure
the continued airworthiness of the aircraft engaged in operations
and subjecting every aircraft to a satisfactory handling flight
prior to deployment for flight operations." It also said the sale
of tickets can be only commenced after the approval of the flight
schedule by the regulator.
DGCA conducted a special audit of Go First facilities in Mumbai and
Delhi from 4th to 6th July 2023, the Express says. The audit
focused on the safety-related aspects and continued compliance of
the requirements by an operator to hold an Air Operator Certificate
as well as on the physical verification of the arrangements made
for the resumption of flight operations.
The Express adds that DGCA noted that the flight operations shall
be subject to the proceedings and/or outcomes in the ongoing
Corporate Insolvency Resolution Process at NCLT, Delhi and other
writ petitions/applications by the Lessors of aircraft leased to Go
First, which are pending in the High Court of Delhi and NCLT,
Delhi.
About Go First
Go First, formerly known as GoAir, was an Indian ultra-low-cost
airline based in Mumbai, Maharashtra. Go First was incorporated in
April 2004 as GoAir and commenced flight operations in November the
following year. Its inaugural flight was from Mumbai to Ahmedabad.
The airline is owned by the Wadia Group.
Go First filed an application for voluntary insolvency resolution
proceedings before National Company Law Tribunal (NCLT) on May 2,
2023.
The company said the filing with the NCLT comes after Pratt &
Whitney, the exclusive engine supplier for the airline's Airbus
A320neo aircraft fleet, refused to comply with an order to release
engines to the airline that would have allowed it return to full
operations.
Go First owes INR6,521 crore to its financial creditors, Bank of
Baroda, IDBI Bank, and Deutsche Bank. The airline has a total
liability of about INR11,463 crore to banks, other creditors,
vendors, and others.
On May 10, 2023, the NCLT accepted Go First's voluntary insolvency
petition. The NCLT bench appointed Abhilash Lal as the interim
resolution professional to look after the affairs of Go First and
also suspended its board as part of the insolvency resolution
process.
GO FIRST: Gets Claims Worth US$2.9 Billion From Creditors
---------------------------------------------------------
Reuters reports that Go Airlines (India) Ltd has received claims
worth INR240 billion (US$2.9 billion) from operational and
financial creditors so far as part of the carrier's ongoing
insolvency, two banking sources told Reuters.
Reuters relates that the process is in line with procedural
requirements under Indian law which allow every creditor a right to
payment and remedy by submitting claims if a company is under
bankruptcy. Once the claims are filed, the resolution professional
has to check its authenticity.
"Claims from the lenders are around INR50 billion, while lessors'
claims amount to INR180 billion so far," a banker with a state-run
bank, who has exposure to Go Airlines said, after a meeting of the
committee of creditors on July 21, Reuters relays.
The bankers did not wish to be identified because they were not
authorised to speak to the media, Reuters notes.
Go Airline's resolution professional has yet to verify the veracity
of the claims and did not immediately respond to a Reuters' email
seeking comment.
Go Airlines, which operated the Go First carrier, filed for
bankruptcy protection in May blaming "faulty" Pratt & Whitney
engines for the grounding of about half its 54 Airbus (AIR.PA)
A320neos.
The Raytheon-owned engine maker has said the claims are without
merit.
The company earlier this month invited investor interest in the
company through a court-appointed administrator. The last date to
submit an expression of interest (EoI) is Aug. 9, Reuters
discloses.
"The airline has received 40 queries on EOIs from potential
bidders, but no formal submissions have been made as yet," the
second banker said.
India's aviation regulator on July 21 said Go Airlines could resume
operations if it can meet certain conditions, including getting
interim funding and approval of its flight schedule.
The resolution professional is waiting for banks to disburse funds
for which in-principal approval was given last month to resume
operations, the banker said, Reuters adds.
About Go First
Go First, formerly known as GoAir, was an Indian ultra-low-cost
airline based in Mumbai, Maharashtra. Go First was incorporated in
April 2004 as GoAir and commenced flight operations in November the
following year. Its inaugural flight was from Mumbai to Ahmedabad.
The airline is owned by the Wadia Group.
Go First filed an application for voluntary insolvency resolution
proceedings before National Company Law Tribunal (NCLT) on May 2,
2023.
The company said the filing with the NCLT comes after Pratt &
Whitney, the exclusive engine supplier for the airline's Airbus
A320neo aircraft fleet, refused to comply with an order to release
engines to the airline that would have allowed it return to full
operations.
Go First owes INR6,521 crore to its financial creditors, Bank of
Baroda, IDBI Bank, and Deutsche Bank. The airline has a total
liability of about INR11,463 crore to banks, other creditors,
vendors, and others.
On May 10, 2023, the NCLT accepted Go First's voluntary insolvency
petition. The NCLT bench appointed Abhilash Lal as the interim
resolution professional to look after the affairs of Go First and
also suspended its board as part of the insolvency resolution
process.
GOAL EDUCATIONAL: CARE Keeps B+ Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Goal
Educational Services Private Limited (GESPL) continues to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.00 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated June 28, 2022,
placed the rating(s) of GESPL under the 'issuer non-cooperating'
category as GESPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. GESPL continues to
be non-cooperative despite repeated requests for submission of
information through e -mails, phone calls and a letter/email dated
May 14, 2023, May 24, 2023, June 3, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
GESPL was initially established as a proprietorship entity in the
name of Goal Practice Centre in the year 1997 and reconstituted as
a partnership firm in the year 2000 and finally it was converted
into private limited company in November 2010 with its current
name. The company was promoted and managed by Mr. Bipin Kumar and
Dr. Mamta Singh based out of Patna, Bihar. Since its inception,
the company has been engaged in imparting non-formal education
(tuition classes) in the fields of Medical and Engineering entrance
examination.
GREEN MAPS: Ind-Ra Assigns B+ Term Loan Rating, Outlook Stable
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated Green Maps Farms'
(GMF) term loan as follows:
-- INR238 mil. Term loans due on March 31, 2030 assigned with
IND B+/Stable rating.
Key Rating Drivers
The rating reflects the under-construction stage of GMF's
hydroponic farm facility that is coming up on an area of 15 acres
in Pune, with 42 different stock keeping units, a reverse osmosis
facility, a packing house and cold storage. The construction of the
unit commenced in June 2022, and the management has informed the
agency that the commercial operations will begin from December
2023. The total cost of the project is INR340 million, which will
be funded by term loan of INR238 million and the rest will be
funded by the promoters through equity infusions. As of May 2023,
GMF had incurred expenditure of around INR190 million (56% of the
total cost) for the project. The term loan of INR238 million has
been sanctioned by the bank, and of this, INR140 million had been
disbursed as of June 2023 The equity infusions by the promoters
for the project amounted to INR60 million as of May 2023.
Liquidity Indicator - Stretched: GMF does not have any capital
market exposure and relies on banks and financial institutions to
meet its funding requirements. In the event of a delay in capex
completion, the expenses will be funded by promoters. The cash and
cash equivalents stood at INR1.40 million at FYE23. GMF has a debt
repayment of around INR9 million in FY25.
The rating is supported by the high demand and growing market for
fresh soil-less and pesticide-free horticultural produce, which
provide medium-term revenue visibility for GMF. The project also
benefits from locational advantages due to its proximity to water
resources and the availability of ample sunlight in the region.
The rating factors in the promoters' experience of nearly one
decade in the farming industry, which would help the firm establish
strong relationships with customers as well as suppliers.
Rating Sensitivities
Negative: Any delays in the commencement of operations and
achievement of stability in the operating performance after the
start of commercial operations, affecting the company's debt
servicing ability, could lead to a negative rating action.
Positive: The timely commencement of operations and the subsequent
achievement of stable operating profitability could lead to a
positive rating action.
Company Profile
Incorporated in June 2022, GMF is a partnership firm based in
Mumbai. The firm is setting up a hydroponic farming facility on its
15 acres of land at Waravadi, Pune. The firm is likely to commence
operations from December 2023. The produce will be sold via an app,
website and online platform under the brand name of Nutrifresh
Farms.
GSR VENTURES: Ind-Ra Cuts LongTerm Issuer Rating to 'BB-'
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded GSR Ventures
Private Limited's (GSR) Long-Term Rating to 'IND BB-' from 'IND
BB', The Outlook is Stable.
The instrument-wise rating actions are:
-- INR40 mil. Fund-based working capital limit affirmed Long-term
rating downgraded; short-term rating with IND BB-/Stable/IND
A4+ rating; and
-- INR500 mil. Non-fund-based working capital limit affirmed with
IND A4+ rating.
The downgrade reflects a lack of revenue visibility for GSR given
its outstanding order book of INR160.23 million as of June 2023 and
a decline in the scale of operations to small from medium.
Key Rating Drivers
GSR's scale of operations declined to small from medium, with its
revenue falling to INR885.70 million in FY23 (FY22: INR1,959.50
million; FY21: INR2,645.22 million), due to the government freezing
the release of new tenders during FY22-FY23. The company was
executing previously unexecuted orders. GSR had an outstanding
order book of INR160.23 million as of June 2023, which are likely
to be executed by September 2023. The company also expects to
receive an additional order of INR1,000 million as the company
participated in the bidding process. In FY24, Ind-Ra expects the
revenue to remain at the similar level given the nature of orders
in hand. Its FY23 numbers are provisional in nature.
Liquidity Indicator – Stretched: GSR has debt obligations of
INR20.30 million for FY24 and INR20.30 million for FY25. GSR's does
not have any capital market exposure and relies on banks and
financial institutions to meet its funding requirements. The
average maximum utilization of the fund-based working capital
limits was around 30.33% and that of the non-fund based working
capital limits was around 32.03% over the 12 months ended June
2023. In FY23, the cash flow from operations turned negative
INR62.40 million (FY22: INR286.60 million), mainly due to a
decrease in absolute EBITDA to INR20.80 million (INR57.20 million).
Moreover, the free cash flow also turned negative INR66.50 million
in FY23 (FY22: INR286 million). The cash and cash equivalents stood
at INR25.30 million at FYE23 (FYE22: INR85.80 million). The
networking cycle of the company deteriorated to 65 days in FY23
(FY22: 34), mainly due to an increase in debtor days to 88 (84) and
an increase in the inventory days to 22 (9).
GSR's EBITDA margin remained modest at 2.35% in FY23 (FY22: 2.92%)
with a return on capital employed of 4.9% (14.7%). The marginal
decline in the EBITDA margin was due to an increase in its
administrative expenses. In FY24, Ind-Ra expects the EBITDA margin
to remain at the similar level due to the similar nature of the
orders in hand.
The ratings also reflect GSR's comfortable credit metrics with its
gross interest coverage (operating EBITDA/gross interest expenses)
declining to 4.5x in FY23 (FY22: 16.80x) and the net leverage
(total adjusted net debt/operating EBITDAR) falling to 0.04x
(negative 0.60x), due to the repayment of its debt. In FY24, Ind-Ra
expects the credit metrics to remain at the similar level due to
the absence of debt-led capex plans in the medium term.
The rating is supported by the founders' over a decade experience
in the execution of civil construction projects.
Rating Sensitivities
Negative: Any further decline in the orderbook, the revenue, credit
metrics and the liquidity position, al on a sustained basis, will
be negative for the ratings.
Positive: A sustained improvement in the orderbook providing
revenue visibility, leading to an improvement in the scale of
operations while maintaining the credit metrics and an improvement
in the liquidity position, on a sustained basis, will be positive
for the ratings.
Company Profile
Hyderabad-based GSR was set up as a partnership firm in 1971 by G
Sivakumar Reddy and his family and was reconstituted as a private
limited company in 2008. It undertakes civil construction, mainly
canal earthwork excavation and bridges.
IL&FS ENVIRONMENTAL: Ind-Ra Withdraws D Issuer Rating
-----------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn IL&FS
Environmental Infrastructure and Services Limited's Long-Term
Issuer Rating of 'IND D (ISSUER NOT COOPERATING)'.
The instrument-wise rating actions are as follows:
-- INR250 mil. Fund-based limits (Long-term/Short-term) is
Withdrawn; and
-- INR54 mil. Term loan (Long-term) due on June 2021 is
withdrawn.
Key Rating Drivers
Ind-Ra is no longer required to maintain the ratings, as the agency
has received a no-due 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 IL&FS
Environmental Infrastructure and Services.
Company Profile
IL&FS Environmental Infrastructure and Services largely operates
under five segments: processing & disposal (municipality solid
waste management business), construction and demolition, collection
& transportation, waste to energy and social advisory.
JUMBO BAG: Ind-Ra Affirms BB+ Issuer Rating, Outlook Stable
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Jumbo Bag
Limited's (JBL) Long-Term Issuer Rating at 'IND BB+'. The Outlook
is Stable.
The instrument-wise rating actions are:
-- INR407.5 mil. (reduced from INR427.5 mil.) Fund-based working
capital limits affirmed with IND BB+/Stable/IND A4+ rating;
-- INR153.4 mil. (reduced from INR162 mil.) Non-fund-based
working capital limits affirmed with IND A4+ rating; and
-- INR109.1 mil. (increased from INR80.5 mil.) Term loan due on
March 2027 affirmed IND BB+/Stable rating.
Key Rating Drivers
The affirmation reflects JBL's continued small scale of operations
with the revenue declining to INR1,082.94 million in FY23 (FY22:
INR1,276.08 million), due to a delay in renewing contracts with
customers. During 2MFY24, JBL achieved revenue of INR199 million.
As of May 2023, it had an order book of INR750 million, to be
executed by 2025. However, Ind-Ra expects the revenue to improve in
FY24 following the renewal of contracts and addition of new
customers. FY23 financials are provisional.
The ratings also factor in JBL's continued modest EBITDA margin of
7.5% in FY23 (FY22: 7.8 %) due to a decline in cost of goods sold
and an increase in direct and personnel expenses. The return on
capital employed deteriorated to 7.3% in FY23 (FY22: 9.9%). In
FY24, Ind-Ra expects the EBITDA margin to remain at a similar level
due to the similar nature of operations.
The ratings continue to reflect the company's modest credit
metrics. The gross interest coverage (operating EBITDA/gross
interest expense) deteriorated to 2.18x in FY23 (FY22: 3.21x) and
the net financial leverage (adjusted net debt/operating EBITDA) to
5.9x (5.64x) due to a decline in the operating EBITDA to INR80.97
million (INR99.80 million) and an increase in interest expenses to
INR37.12 million (INR31.10 million). However, Ind-Ra expects the
credit metrics to improve in FY24 due to a likely improvement in
the EBITDA and a decline in interest expenses.
Liquidity Indicator - Stretched: JBL's average maximum utilization
of the fund-based and non-fund-based limits was 62.58% and 100%,
respectively, during the 12 months ended April 2023. The cash flow
from operations turned positive to INR127.63 million in FY23 (FY22:
negative INR9.93 million) due to favorable changes in working
capital. Consequently, the free cash flow turned positive to
INR86.9 million in FY23 (FY22: negative INR35.52 million). The net
working capital cycle elongated further to 200 days in FY23 (FY22:
175 days) due to an increase in the inventory holding period to 134
days (117 days) and receivable period to 114 days (107 days). The
cash and cash equivalents stood at INR31.4 million at FYE23 (FYE22:
INR1.72 million). The company has scheduled debt repayments of
INR30.18 million and INR22.42 million in FY24 and FY25,
respectively. Further, JBL relies on capital markets, banks and
financial institutions to meet its funding requirements.
However, the ratings remain supported by the promoters'
three-decade-long experience in the plastics industry, leading to
its established relationships with its customers and suppliers.
Rating Sensitivities
Positive: A substantial growth in the revenue, along with an
improvement in the operating EBITDA margin, leading to a sustained
improvement in the liquidity position and credit metrics with the
net leverage reducing below 5.0x on a sustained basis, will be
positive for the ratings.
Negative: A significant decline in the scale of operations, leading
to deterioration in the credit metrics and liquidity position, will
be negative for the ratings.
Company Profile
Incorporated in 1995, Chennai-based JBL manufactures type A, type
B, type C and type D bags. It has an installed capacity of 7,200
metric tons per year. The company is listed on BSE Ltd.
KAKATIYA INDUSTRIES: Ind-Ra Hikes LongTerm Issuer Rating to 'BB+'
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Kakatiya
Industries Private Limited's (KIPL) Long-Term Issuer Rating to 'IND
BB+' from 'IND BB'. The Outlook is Stable.
The instrument-wise rating actions are as follows:
-- INR8.80 mil. Fund-based working capital limits Long-term
rating upgraded; Short-term rating affirmed with IND
BB+/Stable/ IND A4+ rating; and
-- INR651.38 mil. (increased from INR406.55 mil.) Term loan due
on April 30, 2043 upgraded with IND BB+/Stable rating.
The upgrade reflects the commencement of operations in KIPL's hydro
division from April 2022, leading to an improvement in KIPL's
revenue and operating profitability in FY23.
Key Rating Drivers
The ratings reflect an increase in KIPL's revenue to INR239.42
million in FY23 (FY22: INR100.28 million; FY21: INR63.88 million)
on account of the commencement of operations at the company's 9MW
small hydro power plant at the head regulator, Baragarh Main Canal
of Hirakud dam in Odisha from April 2022. The plant recorded a
plant load factor (PLF) of 28.70% in the trailing 12 months ended
March 2023 and an increase in the realization from both ammonium
nitrate and sodium nitrate products due to a high demand of
chemical products, especially in the food industry. However, the
scale of operations remains small. In 2MFY24 , KIPL achieved a
revenue of INR38.21 million, basis the financial numbers provided
by the management. Over the medium term, Ind-Ra expects the
revenue to increase further due to a sustained demand of ammonium
nitrate and sodium nitrate products, along with continued power
supply. KIPL has increased its production capacity to 3,520MT and
720MT (FY22: 2,340MT, 180MT) for ammonium nitrate and sodium
nitrate, respectively. KIPL has signed a long-term power purchase
agreement (PPA) with GRIDCO Limited (debt rated at IND
BBB+/Stable) for the supply of the 100% power produced; the tariff
is INR5.08/kWh for a period of 35 years from the time of
commissioning. The project has an installed capacity of 9MW and a
gross power generation potential of 35.5 million units.
Considering the water inflow (monsoon), the plant was operated for
10 months in FY23. Furthermore, KIPL is planning to demerge its
hydro and chemical division which will be effective over the near-
to-medium term, depending on approvals from the National Company
Law Tribunal. FY23 numbers are provisional.
The ratings also reflect KIPL's improved average EBITDA margins of
67.75% in FY23 (FY22: 25.17%; FY21: 16.05%), on account of the
commencement of the high-margin hydro plant, a reduction in the
operating expenses and an improvement in the realization prices of
the chemical segment. KIPL booked an EBITDA of INR162.21 million in
FY23 (FY22: INR25.24 million). The return on capital employed
improved to 13.8% in FY23 (FY22: 2.80%). Ind Ra expects the hydro
division's EBITDA margin to remain stable, supported by low
operating expenses, and the chemical division's to be volatile in
FY24 and over near-to-medium term on account of price fluctuations
in the chemical industry.
The ratings further reflect KIPL's continued moderate credit
metrics with the gross interest coverage (operating EBITDA/gross
interest expense) deteriorating to 3x in FY23 (FY22: 15.97x; FY21:
4.75x) the net financial leverage (adjusted net debt/operating
EBITDA) improving to 4.63x (25.0x; 43.42x ). The interest coverage
ratio deteriorated in FY23 as till FY22, the interest on the hydro
plant term loan was being capitalized and post its commencement,
the interest is being charged; however, the net leverage ratio
improved in FY23 due to an increase in the absolute EBITDA to
INR162.2 million in FY23 (FY22: INR25.24 million). In FY24, Ind Ra
expects the credit metrics to remain stable in the absence of any
debt-led capex plan and the schedule repayment of its term loans.
Liquidity Indicator - Stretched: KIPL does not have any capital
market exposure and relies on banks and financial institutions to
meet its funding requirements. KIPL's debt service coverage ratio
(DSCR) is likely to be under 1x for FY24 due to the planned
repayment of its unsecured loans of INR41.8 million in FY24.
However, the repayment of the term loan will commence from April
2024. The net cash cycle of the company stretched to 508 days in
FY23 (FY22: 18 days), mainly on account of the increased inventory
days of 561 (132) as inventory was purchased in bulk due to price
fluctuations and enhanced orders in hand. The cash flow from
operations turned negative INR47.06 million in FY23 (FY22: INR16.25
million), on account of high working capital requirement. The free
cash flow improved but remained negative at INR79.83 million in
FY23 (FY22: negative INR191.08 million), due to capital expenditure
worth INR32.97 million incurred for the hydro power project (FY22:
INR207.33 million). KIPL's average maximum utilization of the
fund-based working capital limits stood at 74.42% for the 12 months
ended May 2023. As per the terms of the sanction letter, KIPL has
to maintain a balance worth two quarterly instalments in the trust
and retention account (TRA) and as fixed deposit. At FYE23, KIPL
had a balance of INR21 million in the fixed deposit and a balance
of INR75 million in the TRA account, which mitigate the liquidity
risk significantly. The company had cash and cash equivalents of
INR5.41 million at FYE23 (FYE22: INR0.9 million). The company had
scheduled repayments of INR1.75 million in FY24 and INR23.42
million in FY25.
The ratings also benefit from the promoter's more than four decades
of experience in the chemical industry, leading to established
relationships with the customers and suppliers.
Rating Sensitivities
Positive: An increase in the scale of operations, along with an
improvement in the overall credit metrics with the net leverage
reducing below 3.5x and an improvement in the 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 and/or a further
pressure on the liquidity position, could lead to negative rating
action.
Company Profile
Hyderabad-based KIPL (formerly known as Kakatiya Chemicals Private
Limited) was incorporated in 31 July 1979. It is the subsidiary
of NCL Holdings (A&S) Ltd, which is investment company. The company
has two divisions - the ammonium nitrate and sodium nitrate
division and the hydroelectric power division.
KALP COTSPIN: Ind-Ra Assigns BB- Loan Rating, Outlook Stable
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated Kalp Cotspin Private
Limited's (KCPL) bank facilities as follows:
-- INR30 mil. Fund-based working capital limits assigned with
IND BB-/Stable/IND A4+ rating; and
-- INR265 mil. Term loan due on March 2032 assigned with IND BB-/
Stable rating.
Key Rating Drivers
The ratings reflect the time and cost overrun and funding risks
associated with KCPL's upcoming yarn and fabric manufacturing
plant. While KCPL had completed the construction of the plant and
the building structure by May 2023, the machinery is yet to be
installed. Also, although the limits have been sanctioned, the
total funds have not been disbursed yet. The management has
informed the agency that the commercial operations will commence
from 3QFY24. Ind-Ra expects the scale of operations to remain small
over the medium term, owing to the typical risks associated with
capacity utilization in new yarn and fabric manufacturing
projects.
Liquidity Indicator – Stretched: Of the total investment of
INR408 million required for the project, INR295 million would be
funded through term loans and INR113 million would be contributed
by the promoters, leading to a high debt-equity ratio of 2:6. In
FY23, KCPL infused term loans of INR100 million and promoter funds
of INR50 million; the remaining term loan of INR165 million and
promoter funds of INR63 million will be infused by August 2023.
KCPL has paid advances of INR216 million for the plant and
machinery and INR20 million for other preliminary expenses. The
agency expects the remaining capex to be completed by August 2023.
In the event of a delay in the capex completion, the expenses will
be funded by the promoters. However, this could impact the debt
service coverage ratio. KCPL does not have any capital market
exposure and relies on banks and financial institutions to meet its
funding requirements. Repayment of the term loan will start from
March 2025, and the company would have debt repayments of INR9.46
million in FY25 and INR37.86 million in FY26. KCPL has been
sanctioned fund-based limits of INR30 million for the working
capital requirement.
The rating benefit from the promoter's operating experience of 10
years in the yarn and fabric manufacturing industry, which has
helped the company establish strong relationships with customers as
well as suppliers.
Rating Sensitivities
Negative: Any delay in the commencement of operations and
achievement of stability in the operating performance after the
start of commercial operations, and weaker-than-expected credit
metrics, could be negative for the ratings.
Positive: The timely commencement of operations and subsequent
achievement of stable operating profitability will be positive for
the ratings.
Company Profile
Incorporated on March 25, 2022, KCPL is setting up a yarn and
fabric manufacturing plant in Kalupur, Gujarat, with 60 air jet
looms with attachments for dobby weaving and two-color yarn
insertion facility. The company also plans to undertake weaving of
grey denim fabric of 250cm width at its proposed unit in
Sabarkantha, Gujarat. In addition, KCPL plans to carry out in-house
finishing of grey fabric by installing desize and singeing
machines, which it intends to purchase from an associate concern,
M/s. Kinny Syntex and Kalp Synthetics.
KIRTHI POWER: ICRA Withdraws B+ Rating on INR10cr Loans
-------------------------------------------------------
ICRA has withdrawn the ratings assigned to the bank facilities of
Sri Kirthi Power Solutions India Private Limited (SKPSIPL) at the
request of the company, and upon receipt of no objection
certificate (NOC) from the bankers, which is in accordance with
ICRA's policy on withdrawal of credit rating. However, ICRA does
not have information to suggest that the credit risk has changed
since the time the rating was last reviewed.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based-
Term Loan 4.83 [ICRA]B+ (Stable); withdrawn
Fund-based-
Unallocated 5.17 [ICRA]B+ (Stable); withdrawn
The key rating drivers, liquidity position, rating sensitivities,
key financial indicators have not been captured as the rated
instruments are being withdrawn.
SKPSIPL has developed a 2.0-MW solar power plant in the Nalgonda
district of Telangana, which commissioned operations on March 31,
2016. The company has signed a PPA with TSSPDCL for 20 years with a
feed-in tariff rate of INR6.45 per unit. The total cost of the
project is INR12.34 crore and is part funded by a term loan of
INR8.00 crore and promoter's equity of INR4.34 crore.
LAKSHMI SARASWATHI: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: M/s SRI Lakshmi Saraswathi Spintex Limited
No. 9, Cresent Road,
Shenoy Nagar, Chennai - 600030
Insolvency Commencement Date: June 15, 2023
Estimated date of closure of
insolvency resolution process: December 12, 2023 (180 Days)
Court: National Company Law Tribunal, Coimbatore Bench
Insolvency
Professional: CA Mahalingam Suresh Kumar
SPP & Co., Chartered Accountants
No. 27/9, Nivedh Vikas,
Pankaja Mill Road, Puliyakulam,
Coimbatore - 641 045
Mobile No: +91-73730-52341
Mobile No: 94888-10404
Email: slssl.cirp@gmail.com
Email: msureshkumar@icai.org
Last date for
submission of claims: June 29, 2023
LAVASA CORP: NCLT Approves INR1,814-Crore Resolution Plan
---------------------------------------------------------
BQ Prime reports that the National Company Law Tribunal has
approved a INR1,814 crore resolution plan for the private hill
station Lavasa, nearly five years after the initiation of the
insolvency resolution process.
Darwin Platform Infrastructure Ltd. (DPIL) has emerged as the
winning bidder for Lavasa Corp., which is primarily into the
business of the development of the private hill station by the same
name in Pune, BQ Prime relates.
In a 25-page order passed on July 21, the tribunal cleared the
resolution plan at an investment of INR1,814 crore.
According to BQ Prime, the amount includes a "resolution plan
amount of INR1,466.50 crore to be paid/discharged from funds
infused over multiple tranches, into the corporate debtor by way of
cash funding and instruments, being equity, project inflows, loans,
advances or a combination thereof", the order said. The corporate
debtor is Lavasa.
A monitoring committee comprising the insolvency professional
(earlier resolution professional), one representative each from
financial creditors and Darwin Platform will supervise the
implementation of the resolution plan, the report notes.
"The resolution plan meets the necessary statutory requirements
under the Code, as well as the regulations. We hereby approve the
same," the NCLT said.
The petition for the insolvency resolution process under the
Insolvency and Bankruptcy Code was initiated in August 2018.
Set up in 2010 and a part of the Darwin Platform Group, promoted by
Ajay Harinath Singh, DPIL is engaged in infrastructure contracts
and services and caters to various segments like infrastructure,
refineries, retail and hospitality, among others.
"The NCLT has entrusted us with a challenging task to develop an
ambitious world-class smart city in the country. The verdict would
reinforce our commitment to nation-building. Lavasa is now on the
cusp of a remarkable resurgence. DPIL is committed to executing the
plan as per the schedule proposed to the CoC. We are very eager to
revitalise this ambitious project," the report quotes Singh as
saying in a statement.
Giving assurance to homebuyers, he said, "The plight of homebuyers,
along with the concerns of secured financial creditors, would not
go unnoticed by DPIL. The company promises to include the
stakeholders in the revival process and prioritise their needs."
Lavasa Corporation Limited develops and manages a hill city in
India. Its portfolio includes R&D and training centers, IT and
biotech industry, KPOs and those related to art, fashion, and
animation companies; hospitality, tourism, health, education, and
IT and ITES industries; lakeside apartments, villas, rental
housing, and retiree housing; and studio apartments, starter homes,
and workforce apartments.
Lavasa is a subsidiary of construction major Hindustan Construction
Company (HCC) and has been undergoing insolvency proceedings at the
National Company Law Tribunal, Mumbai, since August 2018.
MA AMBA: CRISIL Keeps B- Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of MA Amba Sponge
Iron Limited (MASPIL) continues to be 'CRISIL B-/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 9 CRISIL B-/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with MASPIL for
obtaining information through letter and email dated June 15, 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 MASPIL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
MASPIL is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of MASPIL continues to be 'CRISIL B-/Stable Issuer Not
Cooperating'.
Incorporated in 2005, MASPIL manufactures sponge iron. Its
facility, based in West Bengal, has an installed capacity of 200
tpd (tonnes per day).
MA SARADA: ICRA Keeps D Debt Ratings in Not Cooperating Category
----------------------------------------------------------------
ICRA has retained the long-term of Ma Sarada Cold Storage 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– 4.01 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term– 1.55 [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.
Incorporated in 1987, Ma Sarada Cold Storage Private Limited is
engaged in providing cold storage facility to potato farmers and
traders on a rental basis. The facility of the company is located
in Bankura district of West Bengal having an annual storage
capacity of 21,052 metric tons.
NATIONAL RICE: CARE Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of National
Rice Mill (NRM) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated June 20, 2022,
placed the rating(s) of NRM under the 'issuer non-cooperating'
category as NRM had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. NRM continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 6, 2023, May 16, 2023, May 26, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Established in January 2009, National Rice Mill (NRM) is engaged in
the rice milling and processing activities at its plant located at
Hooghly, West Bengal with aggregate installed capacity of 16,800
MTPA. Mr. Bansi Badan Dey, having around two decades of experience
in the rice milling industry, looks after the day to day operations
of the entity. He is supported by other partner Mrs. Lekha Dey and
a team of experienced professionals.
POSHS METAL: Ind-Ra Hikes LongTerm Issuer Rating to 'BB+'
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Poshs Metal
Industries Private Limited's (PMI) Long-Term Issuer Rating to 'IND
BB+' from 'IND BB (ISSUER NOT COOPERATING)'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR800.00 mil. (increased from INR500 mil.) Fund-based working
capital limit Long term rating upgraded; short term rating
affirmed with IND BB+/Stable/IND A4+ rating; and
-- INR54.30 mil. Term loans due on March 2028 assigned with IND
BB+/Stable rating.
Analytical Approach: Ind-Ra continues to take a consolidated view
of PMI and its subsidiaries, Poshs Cinoti Private Limited (PCPL;
99.9% shares held by PMI) and Ayasto Steel Pac Private Limited
(ASPL; 99.9%), collectively referred to as the Poshs group, as the
entities have strong legal, operational and strategic linkages
among them. Moreover, all the companies have common promoters.
The upgrade reflects the improvement in the group's consolidated
revenue, margins and net leverage over FY22-FY23.
Key Rating Drivers
The Poshs group's consolidated revenue increased by 98.35% yoy to
INR8,800.87 million in FY22, mainly due to a sharp improvement in
market demand post COVID-19, a healthy growth in PMI's steel
processing business, and manufacturing of high-value precision
steel by PCPL for an infrastructure project. The revenue growth in
FY22 was also supported by improved realizations, as the company
was able to pass on the rise in input costs to its customers. The
group's revenue grew consistently over FY19-FY22, primarily on
account of an increase in revenue from PMI. The revenue increased
further to INR8,862.06 million in FY23 (provisional numbers), led
by an increase in PCPL's revenue to INR887.91million (FY22:
INR688.71 million; FY21: INR303.61 million). The scale of
operations continued to be medium. The auto division contributes
the most to the consolidated revenue. The balance is generated from
steel service centers, the manufacturing and selling of shaped
blanks (auto division) and the manufacturing of precision steel
form work for infrastructure activities.
In FY22, despite an increase in the group's total debt to
INR2,241.94 million (FY21:INR1,506.46 million), the Poshs group's
consolidated credit metrics improved due to the improvement in the
absolute EBITDA to INR418.96 million (FY21: INR207.55 million). The
net leverage (adjusted net debt/operating EBITDAR) was 5.44x in
FY22 (FY21: 6.81x), while the gross interest coverage (operating
EBITDA/gross interest expense) was 1.95x (1.43x). The debt levels
increased in FY22 mainly because of incremental working capital
requirement owing to the increase in the scale of operations. In
FY23, the net leverage improved further to 5.20x due to an increase
in EBITDA to INR461.53 million, but the interest coverage weakened
slightly to 1.85x owing to higher interest and finance cost.
The group's consolidated EBITDA margin increased slightly to an
average 4.76% in FY22 (FY21: 4.68%), and further to 5.21% in FY23
because of a continued decrease in input costs. The ROCE was 14% in
FY22 (FY21:6.3%). The group's margins ranged between 4%-5% over
FY19-FY23 due to the nature of operations. Ind-Ra expects the
operating profitability of the group likely to remain at similar
levels over the medium term.
Liquidity Indicator - Stretched: On a consolidated basis, the cash
flow from operations remained negative at INR620.70 million in FY22
(FY21: negative INR104.90 million) primarily on account of
unfavorable changes in the working capital. The group had free cash
and bank balance of INR217.30 million at FYE23 (FYE22: INR57.98
million) against debt repayment obligations of INR126 million and
INR151million in FY24 and FY25, respectively. On a consolidated
basis, the net cash conversion cycle remained elongated and
stretched to 89 days in FY23 (FY22:76 days; FY21: 90 days) mainly
due to an increase in inventory days to 55 days (45 days). PMI's
combined average utilization of the fund-based working capital
limits was 93.41% over the 12 months ended April 2023. The
standalone cash flow from operations remained negative at INR492.91
million in FY22 (FY21: negative INR60.08million).
The ratings draw comfort from the group's healthy relationship with
customers and suppliers and its presence in a diversified end-user
industry. Within the group, PMI accounts for the largest portion of
the revenue as it is the authorized steel service center for Tata
Steel Limited (IND AA+; Positive) and is also engaged in the
manufacturing of shaped blanks and selling to original equipment
manufacturers through its tier 1 suppliers. The group's
infrastructure business is also supported by healthy relationship
with reputed players such as AFCONS Infrastructure Limited, Larsen
& Toubro Limited (IND AAA/Stable), NCC limited (IND A/Positive),
and J Kumar Infra Projects Ltd. The group is procures a major
portion of its raw material from Tata Steel, and then processes and
sells the same to various industries such as the automotive and
construction sectors. In addition, the group's revenue is backed
by the long-term agreements between Tata Steel and PMI.
The ratings also benefit from PMI's track record of operations and
the extensive experience of the promoters. PMI has been operating
in the steel industry since 1998. The business is led by the
promoter family and is headed by Asheer Ashok Kapoor, the managing
director, and Pinki Ashok Kapoor, director, who have experience of
around two decades in manufacturing shape blanks of steel for the
auto sector. This extensive experience of the management has helped
the group establish long-term relationships with reputed customers
in the auto sector and Tata Steel Limited, which is a major
supplier of raw material.
Standalone Profile: On a standalone basis, PMI's revenue was
INR7,933.99 million in FY23 (FY22: INR8,323.73 million, FY21:
INR4,199.30 million). The overall credit metrics of the company
remained weak, with interest coverage of 1.82x (1.69x; 1.44x) and
net leverage of 6.32x (5.97x and 6.70x). The EBITDA margin stood at
4.29% in FY23 (FY22: 3.61%; FY21: 4.22%). The absolute EBITDA stood
at INR340.19 million in FY23 (FY22: INR300.24 million; FY21:
INR177.31 million).
Rating Sensitivities
Negative: Substantial deterioration in the consolidated operating
EBITDA or credit metrics or liquidity will lead to a negative
rating action.
Positive: Sustaining the scale of operations, substantial
improvement in the liquidity and improvement in the credit metrics,
with the consolidated interest coverage exceeding 2x will be
positive for rating
Company Profile
PMI, which was incorporated in December 1998, is headquartered at
Pune, Maharashtra. The Poshs group consists of three entities -
PMI, PCPL and ASPL. PMI has been in the steel business for over
four decades and caters mainly to the automotive industry. PCPL is
in the business of manufacturing precision steel form work for
infrastructure projects, while ASPL manufactures steel pallets. The
group has been supplying processed steels to the auto industry and
has been operating as an authorized steel processing and
distribution partner for Tata Steel since 2000. The group supplies
form work systems for various infrastructure activities.
R. K. TRANSPORT: CARE Lowers Rating on INR7.83cr LT Loan to B-
--------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
R. K. Transport Company (RKTC), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.83 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Short Term Bank 0.30 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated June 20, 2022,
placed the rating(s) of RKTC under the 'issuer non-cooperating'
category as RKTC had failed to provide information for monito ring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. RKTC continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 6, 2023, May 16, 2023, May 26, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of RKTC have been
revised on account of no n-availability of requisite information.
Analytical approach: Standalone
Outlook: Stable
Howrah (West Bengal) based, R.K. Transport Company (RKTC) was
constituted as a partnership firm on June 10, 2011. The firm is an
associate concern of Gujral Group of companies. The group is
promoted by Mr. Bhupinder Singh Gujral and engaged in
transportation of LPG tankers for the major oil companies such as
Bharat Petroleum Corpo ration Limited (BPCL), Indian Oil
Corporation Limited (IOCL) and Hindustan Petroleum Corporation
Limited (HPCL) and hotel and restaurant business. The group is
having 975 LPG tankers and the loading point is Haldia, West
Bengal.
RAJARATNA MILLS: Ind-Ra Keeps BB Issuer Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Rajaratna Mills
Private Limited's (RMPL) Long-Term Issuer Rating of 'IND BB (ISSUER
NOT COOPERATING)' in the non-cooperating category and has
simultaneously withdrawn it.
The instrument-wise rating actions are:
-- INR228 mil. Fund-based limits* maintained in non-cooperating
category and withdrawn;
-- INR50 mil. Non-fund-based working limit** maintained in non-
cooperating category and withdrawn; and
-- INR178 mil. Term loan# due on May 2025 maintained in non-
cooperating category and withdrawn.
*Maintained at 'IND BB (ISSUER NOT COOPERATING)/ IND A4+ (ISSUER
NOT COOPERATING' before being withdrawn
**Maintained at 'IND A4+ (ISSUER NOT COOPERATING' before being
withdrawn.
#Maintained at 'IND BB (ISSUER NOT COOPERATING)' before being
withdrawn.
Key Rating Drivers
Ind-Ra has maintained the ratings in the non-cooperating category
because RMPL did not participate in the rating exercise despite
requests by the agency and has not provided information pertaining
to the audited financials for FY22, interim financials, management
certificate, and bank limit utilizations. This is in accordance
with Ind-Ra's policy of Guidelines on What Constitutes
Non-cooperation.
Ind-Ra is no longer required to maintain the ratings, as the agency
has received a no-objection certificate from the lender and
withdrawal request from the issuer. 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.
Company Profile
Formed in 1954, RMPL manufactures cotton yarn in Palani, Tamil
Nadu.
RAJNISH STEELS: ICRA Keeps B+ Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has retained the Long-Term and Short-term rating of Rajnish
Steels in the 'Issuer Not Cooperating' category. The ratings are
denoted as [ICRA]B+(Stable)/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 8.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Short Term- 5.40 [ICRA]A4 ISSUER NOT
Interchangeable COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Long Term/ 3.00 [ICRA]B+ (Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain
under issuer not cooperating
category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Incorporated in 1980, Rajnish Steels is a proprietorship concern
set up by Mr. Rajnish K. Gupta. The promoter family has been
involved in the steel trading business for over three decades. RS
is now managed by Mr. Kanish Gupta, who is also the current
proprietor of the firm. It was initially involved only in trading
of long steel products. It ventured in ship- breaking business in
FY2013, which is carried out from a rented plot at a ship-breaking
yard at Darukhana in Mumbai (Maharashtra). The firm started metal
scrap trading in FY2015, wherein it purchases obsolete machineries
and scrap from various industries, dismantles and segregates them
and sells it to the customers. The share of ship breaking and scrap
trading in the total operating income fluctuates widely depending
on the availability of obsolete machineries and ships.
RAM INDUSTRIES: CARE Keeps C Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shri Ram
Industries (SRI) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 CARE C; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated July 6, 2022,
placed the rating(s) of SRI under the 'issuer non-cooperating'
category as SRI had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. SRI continues to be
non -cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 22, 2023, June 1, 2023, June 11, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Shri Ram Industries (SRI) was established as a partnership firm in
1983. SRI is engaged in trading and processing (milling) of
agriculture products such as paddy (rice), wheat, rice bran etc.
The manufacturing unit is located at Shahjahanpur, Uttar Pradesh.
RAMA POWER: Ind-Ra Withdraws BB+ LongTerm Issuer Rating
-------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Rama Power and
Steel Private Limited's Long-Term Issuer Rating of 'IND BB+ (ISSUER
NOT COOPERATING)'.
The instrument-wise rating actions are as follows:
-- INR200 mil. Fund-based working capital limit is withdrawn.
Key Rating Drivers
Ind-Ra is no longer required to maintain the ratings, as the agency
has received a no dues certificate from the lender. This is
consistent with the Ind-Ra's Policy on Withdrawal of Ratings.
Ind-Ra will no longer provide analytical and rating coverage for
Rama Power and Steel.
RAMEE HOTELS: Ind-Ra Hikes LongTerm Issuer Rating to 'BB'
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Ramee Hotels
Private Limited's (RHPL) Long-Term Issuer Rating to 'IND BB' from
'IND B+'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR100 mil. Fund-based working capital limit upgraded with IND
BB/Stable rating;
-- INR15 mil. (reduced from INR25 mil.) Non-fund-based working
capital limit upgraded with IND A4+ rating; and
-- INR605 mil. (increased from INR485 mil.) Term loan due on
March 31, 2028 upgraded with IND BB/Stable rating.
The upgrade reflects the improvement in RHPL's credit metrics,
EBITDA margins and revenue in FY23 (provisional numbers).
Key Rating Drivers
The upgrade reflects the improvement in RHPL's credit metrics in
FY23 on account of an increase in the absolute EBITDA to INR275.70
million (FY22: INR89.24 million), nil utilization of the fund-based
facility during the second half of FY23 (FYE22: INR12.57 million)
and an improvement in the cash and cash equivalent. The interest
coverage (operating EBITDA/gross interest expense) improved to
3.53x in FY23 (FY22: 1.09x) and the net financial leverage
(adjusted net debt/operating EBITDA) improved to 3.8x (13.13x).
Ind-Ra expects the credit metrics to improve further in FY24,
backed by stable absolute EBITDA and a decline in debt due to
schedule repayment of the term loan.
RHPL's revenue grew to INR625.92 million in FY23 (FY22: INR276.97
million), led by an increase in the occupancy rate to 89% (58.3%)
and a rise in the average room rate by 44% yoy. However, the scale
of operations continued to be small. Ind-Ra expect the revenue to
continue to grow in FY24 due to a likely improvement in the average
room rate.
RHPL's EBITDA margin remained modest but improved to 44% in FY23
(FY22: 32.22%) due to higher absorption of fixed costs, led by the
rise in the revenue. The ROCE improved to 2.9% in FY23 (FY22:
negative ROCE). Ind-Ra expects the EBITDA margin to normalize in
FY24 due to a likely increase in fixed costs.
Liquidity Indicator – Stretched: RHPL does not have any capital
market exposure and relies on banks and financial institutions to
meet its funding requirements. The working capital remained healthy
but deteriorated to five days in FY23 (FY22: negative 44 days)
because of a reduction in creditors days to 10 days (66 days), as
RHPL was offered a cash discount for early payment. The average
maximum utilization of the fund-based limits was 2.3% and that of
the non-fund-based limits was 15.06% during the 12 months ended
June 2023. The cash flow from operations increased to INR149.28
million in FY23 (FY22: INR94.43 million) due to the improvement in
absolute EBITDA. The cash and cash equivalents stood at INR104.2
million at FYE23 (FYE22: INR26.95 million). The company has
repayment obligations of INR77.5 million in FY24 and INR103.5 in
FY25.
The ratings continue to be supported by the promoter, Vardaraj M
Shetty's experience of more than two decades in the hospitality
industry.
Rating Sensitivities
Negative: A decline in the scale of operations, leading to
deterioration in the overall credit metrics, with the net leverage
exceeding 5.0x, and further pressure on the liquidity position,
could lead to a negative rating action.
Positive: An increase in the scale of operations and profitability,
along with an improvement in the overall credit metrics, with the
net leverage falling below 3.5x, and an improvement in the
liquidity profile, all on a sustained basis, could lead to a
positive rating action.
Company Profile
Incorporated in June 1998, RHPL is part of the Ramee group that is
promoted by Vardaraj Manjappa Shetty. The company is engaged in the
hospitality business and operates three hotels - Ramee Guestline
Hotel and Ramee Techome in Mumbai and Ramee Grand Hotel & Spa in
Pune. RHPL also operates restaurants within the hotel properties
(Rasoi and Mutuswami in Mumbai and Oriental Fusion in Pune).
RAMSONS CASTING: ICRA Keeps B+ Debt Rating in Not Cooperating
-------------------------------------------------------------
ICRA has retained the Long-Term and Short-term rating of Ramsons
Casting Private Limited in the 'Issuer Not Cooperating' category.
The ratings are denoted as [ICRA]B+(Stable)/[ICRA]A4; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 7.50 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Short Term- 2.00 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
Limits to remain under 'Issuer Not
Cooperating' category
Long Term/ 1.25 [ICRA]B+ (Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain
under issuer not cooperating
category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
RCPL was incorporated in the year 1992 by Mr. Rajesh Sarda and Mr.
Ramswarup Sarda. The company is engaged in the manufacturing of
Mild Steel (MS) Ingots and rolled products such as MS angles,
channels and flats from MS billets and ingots, which in turn are
manufactured from sponge iron and scrap. The company's
manufacturing facility is in MIDC, Nagpur with an installed
capacity of 61,500 metric tonnes per annum (MTPA).
SAINI ALLOYS: Ind-Ra Affirms BB+ Issuer Rating, Outlook Stable
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Saini Alloys
Limited's (SAL) Long-Term Issuer Rating at 'IND BB+'. The Outlook
is Stable.
The instrument-wise rating action is:
-- INR244.5 mil. Fund-based working capital limits affirmed with
IND BB+/Stable/IND A4+ rating; and
-- INR5.5 mil. Non-fund-based working capital limits affirmed
with IND A4+ rating.
Key Rating Drivers
The affirmation reflects SAL's continued medium scale of
operations, with its revenue declining to INR3,919.6 million in
FY23 (FY22: INR3,956.51 million; FY21: INR3,161.66 million), due to
a decline in the revenue of trading business. Till 15 May 2023, SAL
achieved revenue of INR760 million. SAL has a manufacturing
capacity of 72,000 million tons per annum (MTPA) for ingots and
casting products. The company earned 70.89% of its revenue from
trading of hot-rolled coils and 29.11% through the manufacturing of
steel casting and ingots. The sales of alloy steel castings
increased to 10,194.79MT in FY23 (FY22: 3,771MT) as the company is
focusing more on manufacturing steel casting to capture the demand.
Over the medium term, Ind-Ra expects the company's revenue to
remain at the similar lines. Its FY23 numbers are provisional in
nature.
SAL’s EBITDA margin remained modest but improved slightly to 1.8%
in FY23 (FY22: 1.28%; FY21: 1.17%) with the return on capital
employed of 9.9% (8.9%; 9.0%). The improvement in margins was due
to an increase in the proportion of manufactured products in the
product mix to 29.11% (25.03%; 19.42%), coupled with an increase in
the proportion of higher-margin generating alloy steel casting to
76.92% (30.86%; 33.45%) in comparison to ingots. Over the medium
term, Ind-Ra expects the EBITDA margins to increase slightly due to
the likely increase in the sale of higher margin products.
The ratings further reflect SAL's continued moderate credit metrics
with the gross interest coverage (operating EBITDA/gross interest
expense) reducing to 3.45x in FY23 (FY22: 4.8x; FY21: 2.92x) and
the net financial leverage (adjusted net debt/operating EBITDA)
falling to 5.57x in FY23 (FY22: 6.39x; FY21: 7.48x), due to higher
interest cost as a new home loan was sanctioned in FY23. Over the
medium term, Ind-Ra expects the overall credit metrics to improve
due to the scheduled repayment of term loans and the absence of any
debt-funded capex plans.
Liquidity Indicator – Stretched: The company has scheduled debt
repayments of INR8.8 million and INR26.2 million in FY24 and FY25,
respectively. SAL's average maximum utilization of its fund-based
limits was 58.12% and that of its non-fund-based limits was 15.61%
during the 12 months ended April 2023. The cash flow from
operations increased to INR45.05 million in FY23 (FY22: INR3.47
million; FY21: negative INR1.2 million) due to favorable changes in
the working capital. The free cash flow declined to negative
INR70.47 million in FY23 (FY22: negative INR48.58 million; FY21:
negative INR10.95 million) due to capex of around INR120 million
for purchasing a residential property in Ghaziabad worth INR78.23
million as an investment and the purchase of a plant and machinery.
The comfortable net working capital cycle deteriorated to 27 days
in FY23 (FY22: 32; FY21: 33) due to the decline in the inventory
days to 34 (43). The cash and cash equivalents stood at INR0.92
million at FYE23 (FYE22: INR0.21 million; FYE21: INR1.61 million).
Moreover, SAL does not have any capital market exposure and relies
on banks and financial institutions to meet its funding
requirements.
The ratings, however, continue to be supported by SAL's promoters'
over two decades of experience in the steel industry, leading to
established relationships with its customers as well as suppliers.
Rating Sensitivities
Negative: A decline in the scale of operations, leading to a
deterioration in the overall credit metrics and/or a further
pressure on the liquidity position, on a sustained basis, could
lead to a negative rating action.
Positive: A substantial improvement in the scale of operations,
along with an improvement in the liquidity profile with the net
leverage falling below 3.5x, all on a sustained basis, could lead
to a positive rating action.
Company Profile
Incorporated in 1999, SAL was converted into a limited company in
March 2018. The Uttar Pradesh-based company manufactures ingots and
casting products as wells as trades hot rolled products. It has an
installed capacity of 42,000MTPA for ingots and 30,000MTPA of
alloys steel casting.
SARAF AGENCIES: Ind-Ra Keeps D Issuer Rating in Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Saraf Agencies
Private Limited's (SAPL) Long-Term Issuer Rating of 'IND D (ISSUER
NOT COOPERATING)' in the non-cooperating category and has
simultaneously withdrawn it.
The instrument-wise rating actions are given below:
-- INR2,342.1 bil. Term loan due on December 31, 2023 maintained
in non-cooperating category and withdrawn rating.
Note: ISSUER NOT COOPERATING: The issuer did not co-operate, based
on the best available information.
*Maintained at IND D (ISSUER NOT COOPERATING)' before being
withdrawn
Key Rating Drivers
The ratings have been maintained in the non-cooperating category
before being withdrawn because the issuer did not participate in
the rating exercise, despite repeated requests by the agency, and
has not provided information about interim, sanctioned bank
facilities and utilization, business plan, and projections for next
three years, information on corporate governance, and management
certificate. This is in accordance with Ind-Ra's policy of
'Guidelines on What Constitutes Non-cooperation'.
Ind-Ra is no longer required to maintain the ratings, as the agency
has received a no-objection certificate from the lender and
withdrawal request from the issuer. 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.
Company Profile
Incorporated in 1965 as a private limited company, SAPL engages in
the engineering, construction and real estate businesses.
SARAF TRADING: Ind-Ra Cuts Long Term Issuer Rating to 'B-'
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Saraf Trading
Corporation Private Limited's Long-Term Issuer rating to 'IND B-'
from 'IND B+'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR140 mil. Fund-based working capital limit Long-term rating
downgraded; short-term rating affirmed with IND B-/Stable/IND
A4 rating;
-- INR7.5 mil. Non-fund-based limit affirmed with IND A4 rating;
and
-- INR32.2 mil. (reduced from INR37.2 mil.) Term loan due on
March 31, 2027 downgraded with IND B-/Stable rating.
The downgrade reflects the decline in STCPL's revenue, the
incurring of EBITDA loss, and the consequent deterioration in the
credit metrics in FY23.
Key Rating Drivers
STCPL's revenue declined to INR355.54 million in FY23 (provisional
numbers) (FY22: INR412.70 million), as the organic division of the
company was unable to export products because the European Union
blacklisted five organic food-certifying agencies in India that
certify the food being exported from India, and other agencies in
the country were barred from registering any new processor or
exporter for organic products certification. The scale of
operations continued to be small. In FY24, STCPL registered with
Mayacert S.A., a Southeast Asian food-certifying agency that is
recognized by the European Union, and subsequently resumed its
export operations. In 2MFY24, STCPL booked revenue of INR50
million. In FY24, Ind-Ra and the management expect the revenue to
improve on a yoy basis owing to the clearing of the backlog of
export orders and resumption of operations by the organic
division.
Furthermore, STCPL recorded an EBITDA loss of INR12.14 million in
FY23 (FY22: absolute EBITDA of INR3.5 million; margin of 0.85%) due
to an increase in direct expenses. The ROCE remained negative in
FY23. In FY24, Ind-Ra expects the EBITDA margin to improve due to
the likely increase in revenue and decline in expenses.
Additionally, the credit metrics deteriorated in FY23 owing to the
incurring of EBITDA loss (FY22: gross interest coverage (operating
EBITDA/gross interest expense) of 0.3x; net financial leverage
(adjusted net debt/operating EBITDA) of 61.77x). In FY24, Ind-Ra
expects the credit metrics to improve due to the likely improvement
in EBITDA.
Liquidity Indicator – Poor: STCPL's average maximum utilization
of the fund-based limits was 94.48% during the 12 months ended May
2023. The cash flow from operations remained negative at INR28.58
million in FY23 (FY22: negative INR34.80 million) due to the
deterioration in the EBITDA. The free cash flow also remained
negative in FY23 but improved to a negative INR23.38 million (FY22:
negative INR93.70 million) owing to a decline in capital
expenditure. The net working capital cycle continued to be
stretched but improved to 236 days in FY23 (FY22: 354 days) due to
a fall in inventory days to 204 days (312days). The cash and cash
equivalents stood at INR 2.12 million at FYE23 (FYE22: INR0.6
million). STCPL does not have any capital market exposure and
relies on banks and financial institutions to meet its funding
requirements. The company has scheduled debt repayments of INR11.8
million in FY24 and INR8.9 million in FY25.
The ratings are constrained by the intense competition in the tea
processing industry and customer concentration. The tea industry is
price sensitive and is heavily dependent on certain geographies.
STCPL faces high competition from organized as well as unorganized
players. Furthermore, in FY23, the top three customers contributed
around 70% to the total sales.
The ratings, however, continues to be supported by STCPL's
promoters' experience of three decades in the tea industry, which
has led to established relationships with customers and suppliers.
Rating Sensitivities
Negative: A substantial decline in the revenue and the EBITDA
margin, leading to deterioration in the overall credit metrics and
weakening of the liquidity position, will lead to a negative rating
action.
Positive: An improvement in the liquidity position along with a
significant rise in the revenue and EBITDA margins, leading to the
gross interest coverage exceeding 1x, all on a sustained basis,
will lead to a positive rating action.
Company Profile
STCPL was founded by V.G. Saraf in 1948 and incorporated in 1994.
It is engaged in the processing, blending and exporting of packaged
tea. The company's unit is located in Thoothukudi, Tamil Nadu.
SBL CONSTRUCTION: Ind-Ra Affirms D Long Term Issuer Rating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed SBL Construction
Private Limited' (SCPL) Long-Term Issuer Rating at 'IND D (ISSUER
NOT COOPERATING)'.
The instrument-wise rating actions are as follows:
-- INR20 mil. Fund-based working capital limit (long-term)
downgraded with IND D (ISSUER NOT COOPERATING) rating; and
-- INR50 mil. Non-Fund-based working capital limit (short-term)
downgraded with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Key Rating Drivers
The affirmation of the Long-Term Issuer Rating and downgrade of
the bank facility ratings reflect SCPL's delays in debt servicing
based on information available from public sources. Ind-Ra has not
been able to ascertain the reason for the delays, as the issuer has
been non-cooperative.
Company Profile
SCPL, incorporated in July 2005, is engaged in civil construction
work of medium and large industrial, commercial, institutional and
residential projects.
SEQUEL BUILDCON: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Sequel Bildcon Private Limited
Registered Office:
Office No. 208, Second Floor, Plot No. 20,
Parmesh Business Towers
Karikardooma Community Centre
Delhi-110092
Corporate Office:
D-247/26 Sector 63
Noida, Uttar Pradesh-201301
Insolvency Commencement Date: June 16, 2023
Estimated date of closure of
insolvency resolution process: December 13, 2023
Court: National Company Law Tribunal, New Delhi Bench
Insolvency
Professional: Amarpal
A-304, Plot No. 3C, Mandakini Apartments,
Sector-2 Dwarka New Delhi-110075
Email: amarpal@icai.org
Office No 201 Aggarwal Plaza,
Sector 9, DC Chowk,
Rohini New Delhi - 110085
Email: cirp.sequelbuildcon@gmail.com
1. Mr. NitishKumar Chugh
2. Mr. Mohd Nazzim Khan
3. Mr. Ishant Jain
Last date for
submission of claims: June 30, 2023
SHIVANSHU SINTERED: CARE Keeps B- Debt Rating in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shivanshu
Sintered Products Private Limited (SSPPL) continues to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 14.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated June 30, 2022,
placed the rating(s) of SSPPL under the 'issuer non-cooperating'
category as SSPPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. SSPPL continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 16, 2023, May 26, 2023, June 5, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Delhi-based SSPPL is a private limited company incorporated in
2001. The company is engaged in manufacturing of neembased
pesticide, oil and fertilizers. The company has its manufacturing
facility located in Faridabad, Haryana.
SHORE DWELLINGS: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Shore Dwellings Private Limited
4l Vittal Mallaya Road
Bangalore-56000l, Karnataka
Insolvency Commencement Date: June 23, 2023
Estimated date of closure of
insolvency resolution process: December 20, 2023 (180 Days)
Court: National Company Law Tribunal, Bengaluru Bench
Insolvency
Professional: Rajesh Kumar Parakh
5/51, 2nd Floor, WEA, Karol Bagh
New Delhi-110005 India
Email: parakh.rajesh@gmail.com
Ground Floor, No. 8, 'VK Commerce', 3rd main,
Rajajinagar Indusrial Estate
Bengaluru 560010
Email: cirp.sdpl@gmail.com
1. Mr. Surender Devasani
1436, AnasuyaNilaya, 2nd Floor,
8th Cross, l0th Main,
BTM 2nd Stage,
Bangalore, Karnataka-560076
Email: surenderdevasani@gmail.com
2. Ms.Rajini GN
Sy. No 7/16, No. 3, Manjunatha Complex,
4th Main, SSA Road,
Hebbal, Professional Courier Building
Bangalore - 56002, Karnataka
Email: torqiinign@gnail.com
3. Mr. Narayana Kamma
E-1807, Leo, Brigade Gateway Apartments,
Dr. Rajkumar Road,
Malleshwaram-West Orion Mall,
Bangalore-560055, Karnataka
Email: kln6019@gmail.com
Last date for
submission of claims: July 7, 2023
SONERI MARINE: ICRA Keeps B+ Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA has retained the Long-Term and Short-term rating of Soneri
Marine Foods in the 'Issuer Not Cooperating' category. The ratings
are denoted as [ICRA]B+(Stable)/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 0.32 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Short Term- 0.20 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
Limits to remain under 'Issuer Not
Cooperating' category
Short Term- 5.00 [ICRA]A4 ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term/ 1.20 [ICRA]B+ (Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain
under issuer not cooperating
category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due. Despite repeated requests by ICRA, the entity's management has
remained non-cooperative. The current rating action has been taken
by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Soneri Marine Foods was established in 2007 as a partnership firm
for the processing and export of seafood. The firm mainly deals
with frozen fish such as croaker fish, cuttle fish, ribbon fish,
indian mackerel and horse mackeral, among others, as well as
value-added products such as frozen crabs ( Blue Swimming Crab and
Three Spotted Crab, for instance). The firm is own and managed by
Mr. Prakash Soneri and family. The processing unit of SMF is
located at Veraval, Gujarat, with a processing capacity of 70
tonnes per day (TPD) and a storage capacity of 750 tonnes of
seafood.
SUPREME BUNGALOWS: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Supreme Bungalows Private Limited
Registered Office:
Supreme House, Plot No. 94/C,
Opp. I.I.T., Powai,
Mumbai MH 40076 India
Insolvency Commencement Date: June 14, 2023
Estimated date of closure of
insolvency resolution process: December 10, 2023 (180 Days)
Court: National Company Law Tribunal, Mumbai Bench
Insolvency
Professional: Mr. Anup Kumar Singh
4th Floor, Flat 4a, Bidyaraj Niket,
22/28A, Manohar Pukur Road,
Near Deshapriya Park,
Kolkata-7000029, West Bengal
Email: anup_singh@stellarinsolvency.com
Suite IB, 22/28A, Monahorpukar Road,
Deshopriya Park, Kolkata-700029
Email: supremebungalows.sipl@gmail.com
Last date for
submission of claims: June 28, 2023
TAYAL POLYPLAST: CARE Keeps B- Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Tayal
Polyplast (TP) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.97 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated June 30, 2022,
placed the rating(s) of TP under the 'issuer non-cooperating'
category as TP had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. TP continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 16, 2023, May 26, 2023, June 5, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Established in January 2018, Tayal Polyplast (TP) was promoted by
Shrikishan Agrawal, Mr. Ashish Agrawal and Mr. P.K. Agrawal to set
up a PVC pipes and fillings manufacturing unit at Sambalpur, Odisha
with an installed capacity of 2640 metric tons per annum (MTPA).
After successful setting of its manufacturing plant, the firm has
started its commercial operation October 2018.
TIRUMALA HILLS : Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Tirumala Hills Asphalt Private Limited
Registered Office:
Flat No. 4, H. No. 5-8-9, 4th Floor,
Laxmi Sai Nilayam, Fathe Sultan Lane,
Hyderabad-500001, Telangana
Other Office:
1st Floor, Lakshmipathi Nilayam,
Officers Colony, Housing Board Colony,
Anantapuram, 515001, Andhra Pradesh
Insolvency Commencement Date: June 14, 2023
Estimated date of closure of
insolvency resolution process: December 10, 2023
Court: National Company Law Tribunal, Hyderabad Bench
Insolvency
Professional: Adinarayana Babji Kota
3-1-211 upstairs, Somasundaram Street,
Secunderabad 500003
Email: kotababji@gmail.com
Email: tirumalahillscirp@yahoo.com
Last date for
submission of claims: June 28, 2023
TIRUPATI INDUSTRIES: CARE Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Tirupati
Industries (TI) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 27.47 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated June 30, 2022,
placed the rating(s) of TI under the 'issuer non-cooperating'
category as TI had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. TI continues to be
non -cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 16, 2023, May 26, 2023, June 5, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Gujarat based Tirupati Industries was set up in May 2014 as a
partnership firm and is engaged in processing of groundnut deoiled
cake for cattle feed and various other applications. TI had an
installed capacity of 300 metric ton (MT) per day of oil cake as on
March 31, 2019. Along with this, TI is also engaged in
opportunity-based trading of other agricommodities including
de-oiled rice bran (DORB). The firm is presently managed by seven
partners, principal amongst them being Mr. Ashish Talaviya.
TRIOFAB PRIVATE: Ind-Ra Assigns BB Rating, Outlook Stable
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Triofab (India)
Private Limited's (TIPL) bank facilities as follows:
-- INR100 mil. Fund-based working capital limits assigned with
IND BB/Stable/IND A4+ rating.
Key Rating Drivers
The rating factors in TIPL's small scale of operations, with its
revenue declining to INR43 million in FY23 (FY22: INR83.33 million;
FY21: INR139.43 million), due to a shortage of oxygen cylinders
during the second COVID-19 wave in FY22, leading to the company
halting its operations for five-to-six months. Oxygen is highly
utilized in steel cutting, a fundamental requirement in the
manufacturing process. The company began bidding for orders in FY23
but as execution takes close to nine months due to the customized
nature of work, the revenue from its orders under execution in FY23
will only be realized FY24 onwards. Ind-Ra expects its revenue to
improve in FY24 and FY25 due to its healthy orderbook of INR717
million. Its FY23 numbers are provisional in nature.
Liquidity indicator - Stretched: TIPL's average maximum utilization
of the fund-based limits for the five months ended May 2023 stood
at 97%. The company had no fund-based limits till December 2022 as
it opted for INR100 million of fund-based limits from January 2023
as the company had order worth INR717 million as of March 2023. The
execution of these orders requires increased working capital. The
company's cash flow from operations declined to negative INR66.64
million in FY23 (FY22: INR26.06 million; FY21: INR0.18 million) due
to the increase in its working capital owing to the execution of
its orderbook. TIPL does not have any capital market exposure and
relies on banks and financial institutions to meet its funding
requirements. The company has no long-term bank loans and hence
has no scheduled debt repayment obligations for FY24 and FY25. The
unencumbered cash and cash equivalents stood at INR9.18 million at
FYE23(FYE22: INR0.16 million; FY21: INR1.35 million).
TIPL's credit metrics remained modest with its gross interest
coverage (operating EBITDA/gross interest expense) falling to 1.82x
in FY23 (FY22: 2.63x; FY21: 2.37x) and the net leverage (total
adjusted net debt/operating EBITDAR) increasing to 7.63x (4.88x;
6.41x). The decline in the credit metrics was due to an increase in
the total debt to INR132.7 million in FY23 (FY22: INR56.8 million)
due to the sanction and utilization of INR100 million of fund-based
limits. Ind-Ra expects the credit metrics to improve substantially
in FY24, owing to a likely increase in absolute EBITDA following
the execution of its orders in FY24 and FY25.
TIPL EBITDA margins remained modest but improved to 38% in FY23
(FY22: 13.94%; FY21: 9.42%) due to an increase in the work in
progress inventory as the company gears up to executing its
orderbook in FY24 and FY25. The return on capital employed was
11.5% in FY23 (FY22: 9.9%; FY21: 10.5%).
The rating, however, is supported by the promoters' three decades
of experience in engineering and construction especially for the
oil and gas industry, leading to established relationships with
customers and suppliers.
Rating Sensitivities
Negative: The inability to increase the scale of operations and/or
a deterioration in liquidity, on a sustained basis, will be
negative for the rating.
Positive: A substantial improvement in the scale of operations
along with an improvement in liquidity, on a sustained basis, will
be positive for the rating.
Company Profile
Established in 1991, TIPL majorly manufactures pressure vessels
(about 40%), heat exchangers (about 30%) and skid mounted systems
(about 20%). The company caters to the oil and gas segment and is
led by Francis John, the managing director of the company.
TUAMAN ENGINEERING : Insolvency Resolution Process Case Summary
---------------------------------------------------------------
Debtor: Tuaman Engineering Limited
23A, Netaji Subhas Road,
8th Floor, Room No. 16,
Kolkata - 700001
Insolvency Commencement Date: June 15, 2023
Estimated date of closure of
insolvency resolution process: December 12, 2023
Court: National Company Law Tribunal, Kolkata Bench
Insolvency
Professional: CA, Uttam Kumar Agarwal
101B, Rastraguru Avenue, Clive House, Kolkata
West Bengal – 700028
Email: uttamagarwal_ca@yhaoo.co.in
Email: tuamanaengineering2005@gmail.com
Last date for
submission of claims: June 29, 2023
VENKATESHWARA INDUSTRIES: CARE Keeps B- Rating in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sri
Venkateshwara Industries (SVI) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.50 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated June 23, 2022,
placed the rating(s) of SVI under the 'issuer non-cooperating'
category as SVI had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. SVI continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 9, 2023, May 19, 2023, May 29, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Koppal (Karnataka) based Sri Venkateshwara Industries (SVI) was
established in 2009 and is promoted by Mr. K SunilChowdhary. The
firm has two partners ie., Mr. K Sunil Chowdhary and Mrs. K
Ramasita. Both the partners have more than adecade of experience in
the same line of business. SVI is engaged in processing and selling
of rice. The rice processing unit ofthe firm is located at Koppal,
Karnataka. Apart from rice processing, the firm is also engaged
into selling byproducts such asbroken rice and rice bran. The main
input, paddy, is majorly procured from paddy merchants and farmers
located in AndhraPradesh, Telangana and Karnataka region. The firm
sells rice and other by -products to the rice dealers located in
Karnataka. Ason February 28, 2019, the installed capacity of the
firm was 3.5 tonnes of rice per hour.
VENKATESWARA POULTRY: CARE Keeps B- Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sri
Venkateswara Poultry Complex (SVPC) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 14.25 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated June 21, 2022,
placed the rating(s) of SVPC under the 'issuer non-cooperating'
category as SVPC had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. SVPC continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 7, 2023, May 17, 2023, May 27, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Stable
Peddapuram (A.P) based Sri Venkateswara Poultry Complex (SVPC) is a
partnership firm established in 1994 by Mr B Timmaraju, Ms B
Sarojini, Mr B Sri Rama Rao and Mr B Srinivasa Rao. The firm is
engaged in layer poultry farming and wholesale trading of eggs. The
firm has existing capacity of 4,00,000 layers and actual capacity
of 3,83,000 layers. The firm sells its products, eggs, cull birds,
majorly to intermediaries in Andhra Pradesh, who in turn sell in
West Bengal, Assam and Bihar. The firm purchases inputs for feeding
of birds like maize, soya, broken rice, shell grit and minerals
from local traders.
VSN LABORATORIES: CARE Keeps B- Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of VSN
Laboratories Private Limited (VSN) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 16.30 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated June 28, 2022,
placed the rating(s) of VSN under the 'issuer non-cooperating'
category as VSN had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. VSN continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 14, 2023, May 24, 2023, June 3, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
VSN Laboratories Private Limited (VSN) was incorporated on June 1,
2009 by Mr.V.Nageswara Rao along with his wife Mrs. V. Padmavathi
for manufacturing of Active Pharmaceutical Ingredients (APIs). In
FY18 four new promoters, Mrs. K.Indira, Mr. K.Madhusudhan Rao.
Bhuviteja Enterprises (India) Private Limited and Ms.K.Tejaswini,
joined the company. The company was originally registered as Lucid
Life Sciences Private Limited and subsequently the name of the
company was changed to the current nomenclature i.e. VSN on
December 18th, 2009. The company started with its trial runs in the
month of February 2016; however, the commercial production was
commenced on May 2, 2016 with a total installed capacity of 240
kilolitres per annum at its manufacturing unit located in Krishna
District of Andhra Pradesh. The company has expanded its
manufacturing unit and increased the installed capacity to 72KL per
month from June 2018. The facilities of VSN are incorporated as per
Current Good Manufacturing Practices (CGMP) standards. VSN is
manufacturing APIs with drugs portfolio like pantaprazole, triazole
alcohol and omeprazole and others. These are used for the treatment
of gastroesophageal reflux diseases, seasonal allergies, nausea,
cholesterol, hypertension, etc. The company sources raw materials
required for manufacturing of APIs from vendors based in Hyderabad
and Mumbai. VSN is supplying APIs to variety of domestic
formulators (mainly private pharmaceutical companies). VSN also has
an on-site well-equipped Research and Development (R&D) Centre
which is continuously involved in process development, trouble
shooting and process optimisation of the drugs.
YATRA FOR BUSINESS: Ind-Ra Keeps BB+ Rating in Non-Cooperating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Yatra For
Business Private Limited's (YFBPL) Long-Term Issuer Rating in the
non-cooperating category and has simultaneously withdrawn it. The
instrument-wise rating actions are as follows:
-- INR1.0 bil. Fund-based working capital limit* maintained in
non-cooperating category and Withdrawn; and
-- INR100 mil. Non-Fund-based working capital limit** maintained
in non-cooperating category and withdrawn.
*Maintained at 'IND BB+ (ISSUER NOT COOPERATING)'/Rating Watch
with Developing Implications/'IND A4+ (ISSUER NOT COOPERATING)'
/Rating Watch with Developing Implications before being
withdrawn
** Maintained at 'IND A4+ (ISSUER NOT COOPERATING)'/Rating Watch
with Developing Implications before being withdrawn
Key Rating Drivers
Ind-Ra has maintained the ratings in the non-cooperating category
as the issuer did not participate in the rating exercise, despite
requests by the agency and has not provided information pertaining
to the sanctioned bank facilities and utilization, business plans
and projections for the next three years, information on corporate
governance and information for the resolution of rating watch.
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.
Company Profile
YFBPL provides business travel services to direct corporate
customers, offering an integrated service portfolio covering total
travel solutions, value-added services and optimal management of
corporate travel budgets.
ZURI HOTELS: Ind-Ra Assigns BB- Loan Rating, Outlook Stable
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated Zuri Hotels and
Resorts Pvt Ltd.'s (ZHRPL) debt instruments as follows:
-- INR188 mil. Fund-based working capital limits assigned with
IND BB-/Stable/IND A4+ rating.
Key Rating Drivers
The rating reflects ZHRPL's small scale of operations, as indicated
by revenue of INR247.35 million in FY23 (FY22: INR53.00 million;
FY21: INR24.70 million). The revenue increased in FY23 on account
of higher occupancy and average room rent upon the easing of the
COVID-19-led restrictions. The average occupancy improved to 56% in
FY23 (FY22: 12%; FY21: 4%). Ind-Ra believes the revenue will
improve in FY24 as well, due to the promotional strategies adopted
by the company which could increase the occupancy and the average
room rent. ZHRPL has a healthy revenue mix, with around 66% of the
revenue coming from room rent and 33% from food and beverages. FY23
numbers are provisional.
The rating also reflects ZHRPL's modest EBITDA margins which
improved to 16.44% in FY23 (FY22: negative 58.34%; FY21: negative
138.42%), with ROCE of 2.9% (negative 4.4%; negative 5.7%), due to
the stabilization of the hospitality segment post the pandemic and
cost-cutting measures in administrative expenses and personnel
expense. The hotel managed to earn an absolute EBITDA of INR40.66
million in FY23 (FY22: negative INR30.92 million; FY21: negative
INR34.19 million). Over the medium term, Ind-Ra expects the margins
to remain on similar lines due to the similar nature of operations.
The rating further reflects ZHRPL's modest credit metrics with a
gross interest coverage (operating EBITDA/gross interest expense)
ratio of 1.36x (FY22: negative 1.13x; FY21: negative 1.64x) and a
net financial leverage (adjusted net debt/operating EBITDA) of
7.57x (negative 10.31x; negative 8.01x).The credit metrics improved
in FY23 due to the increase in the absolute EBITDA and the
repayment of a term loan. Ind-Ra expects the credit metrics to
improve in FY24 as well, amid the absence of any major debt-funded
capex plans.
Liquidity Indicator – Stretched: ZHRPL's average maximum
utilization of the fund-based limits and non-fund-based limits was
63.67% and 18.67%, respectively, during the 12 months ended April
2023. While remaining low, the cash flow from operations increased
to INR21.9 million in FY23 (FY22: negative INR46.11 million; FY21:
negative INR56.03 million) due to the improvement in the absolute
EBITDA. The free cash flow thus improved to INR19.4 million in FY23
(FY22: negative INR46.38 million; FY21: negative INR57.14 million).
Moreover, the net working capital cycle shortened to 52 in FY23
(FY22: 178 days; FY21: 182 days) due to a decrease in the inventory
days to 95 (222; 208). The company includes advances from customers
in the creditors. The cash and cash equivalents stood at just
INR0.40 million at FYE23 (FY22: INR0.39 million; FYE21: INR1.09
million). ZHRPL has a repayment obligations of INR6.83 million and
INR7.39 million for FY24 and FY25, respectively. ZHRPL does not
have any capital market exposure and relies on banks to meet its
funding requirements.
The rating however is supported by ZHRPL's promoter's experience of
over four decades in managing hotel operations.
Rating Sensitivities
Negative: A decline in the scale of operations, leading to
deterioration in the overall credit metrics and/or pressure on the
liquidity position, could lead to a negative rating action.
Positive: An increase in the scale of operations, along with an
improvement in the overall credit metrics with interest coverage
above 2x and an improvement in the liquidity profile, on a
sustained basis, could lead to a positive rating action.
Company Profile
Incorporated in 2012, ZHRPL operates a five-star hotel with
72-rooms,10 villas and 20 cottages in Kerala under the name The
Zuri Kumarakom Resort & Spa. The company was demerged in 2012 from
the group entity Zuri Hospitality Pvt Ltd.
===============
M A L A Y S I A
===============
AIRASIA X: Applies to Exit PN17 Status
--------------------------------------
AirAsia X Berhad ("AAX") is seeking a relief from Bursa Malaysia
Securities Berhad to exempt the airline from the requirement to
submit a Proposed Regularisation Plan as required under Paragraph
8.04(3)(A) of the Main Market Listing Requirements of Bursa
Securities. Subsequently, the airline is also seeking the
upliftment of AAX from being classified as a Practice Note 17
Affected Listed Issuer.
From the onset of the company triggering suspended criteria under
PN17 from July 30, 2020, AAX has undertaken a broad range of
measures and corporate exercises to improve its financial position.
The first of these being a set of restructuring exercises which
incorporated a debt restructuring scheme, share capital reduction
of 99.9% of the issued share capital of AAX, share consolidation
and a revision of its business plan.
The revised business plan incorporated key elements including a
leaner and more viable cost structure with primary focus on
medium-haul flight operations, a rationalised network plan which
saw the termination of unprofitable routes and recalibration of
focus on routes with proven loads and yield performance in AAX's
core markets.
AAX has also during this time deferred all investments in new and
immature routes, apart from restructuring all of its contracts and
arrangements in relation to its fleet and overall operations to
better align to its future size and requirements. In its
right-sizing strategy, AAX had also undertaken plans for manpower
consolidation and optimisation, ensuring that its workforce is
strictly aligned with its operational requirements.
With the continued efforts set forth above, AAX has managed to turn
around its financial position from 12 quarters of losses since the
quarter ended June 30, 2019 to registering three consecutive
quarters of net profit for the quarters ended September 30, 2022,
December 31, 2022 and March 31, 2023. As at March 31, 2023, AAX has
also recorded a positive shareholders' equity.
Based on its improved operating and financial performances, AAX no
longer triggers any of the criterias prescribed under Paragraph 2.1
of PN17, particularly as AAX's shareholders' equity has turned
positive; and AAX's external auditors have expressed a clean
opinion of AAX's financial position.
AAX CEO Benyamin Ismail said:"The restructuring exercises that we
have undertaken in the past couple of years allowed us to transform
and reset AAX towards a more sound and viable financial position.
Since our emergence from hibernation back in April 2022, we are
pleased to share that AAX's operational and financial performances
have been improving in line with the increasing demand that we
observe across all our core markets. Improved demand for travel has
been evident in the last three quarters when we recorded passenger
load factors of 73%, 79% and 80% for the periods ended September
30, 2022, December 31, 2022 and March 31, 2023 respectively.
"We have managed to maximise the recovery of all of our revenue
segments even though some of our fleet remain on ground. As of
March 31, 2023, AAX's cash position is healthy at MYR192.37
million, without any outstanding debts, and has sufficient working
capital for 12 months. In addition, with the recent completion of
placement of an aggregate of 32,258,066 new AAX Shares to AHAM
Asset Management Berhad, AIIMAN Asset Management Sdn Bhd and Lavin
Group Sdn Bhd at an issue price of MYR1.55 per AAX Share, we have
raised net proceeds of approximately MYR50.00 million,
strengthening AAX's equity position and ultimately granting AAX the
platform to gradually re-establish a firm equity base. This is a
strong testament that confidence in AAX is growing and future
prospects are strong."
About AirAsia X
AirAsia X Berhad (AAX) -- http://www.airasiax.com/-- is a
long-haul, low-cost airline operating primarily in the Asia-Pacific
region.
AAX had triggered the criteria for PN17 classification in October
2021, after its external auditors, Messrs Ernst & Young PLT, had
expressed a disclaimer of opinion in the airline's audited
financial statements for the 18-month financial period ended June
30, 2021.
AAX then logged a net loss of MYR33.72 billion for the period,
while its current liabilities exceeded current assets by MYR34.21
billion, while its shareholders' deficit stood at MYR33.58
billion.
=====================
N E W Z E A L A N D
=====================
BEARD BOYS: Court to Hear Wind-Up Petition on Aug. 1
----------------------------------------------------
A petition to wind up the operations of Beard Boys Corporation
Limited will be heard before the High Court at Rotorua on Aug. 1,
2023, at 10:00 a.m.
The Chief Executive of New Zealand Customs Service filed the
petition against the company on June 13, 2023.
The Petitioner's solicitor is:
S. B. McCusker
Luke Cunningham Clere
PO Box 10357
Wellington 6143
EURODELL LIMITED: Court to Hear Wind-Up Petition on Aug. 11
-----------------------------------------------------------
A petition to wind up the operations of Eurodell Limited will be
heard before the High Court at Auckland on Aug. 11, 2023, at 10:00
a.m.
Honar Refrigeration Limited filed the petition against the company
on June 6, 2023.
The Petitioner's solicitors are:
A. E. Hansen
L. A. Sheppard
Heimsath Alexander Solicitors
Level 1, Shed 22
Princes Wharf
147 Quay Street
Auckland
EZIBUY OPERATIONS: Goes Into Liquidation Owing More Than NZD100MM
-----------------------------------------------------------------
Esther Taunton at Stuff.co.nz reports that online retailer Ezibuy
has gone into liquidation, owing creditors more than NZD100
million.
The liquidation comes after its Australian owner, Mosaic Brands,
put the prolific email and catalogue-sending retailer into
administration in April.
In a report to creditors on July 11, administrators Damien
Hodgkinson and Kate Barnet recommended the business be wound up.
Stuff, citing documents filed with the Companies Office, relates
that creditors last week voted in favour of that recommendation,
with Olvera Advisors' Hodgkinson and Barnet appointed liquidators.
According to the July 11 report, Ezibuy owed secured creditors more
than NZD71 million as of the start of April, Stuff discloses.
Of that, approximately NZD48 million was owed to the Commonwealth
Bank of Australia, NZD16.3 million to Melbourne Securities
Corporation and AUD7 million to Mosaic at the start of April.
Staff were owed a further NZD2.2 million in redundancy payments and
annual leave, while unsecured creditors were owed about NZD42
million.
Ezibuy was founded in 1978. It was bought by Mosaic from previous
owners Alceon, who purchased it from Woolworths, shortly before the
pandemic.
Mosaic said it was profitable in the 2021 and 2022 financial years
but had been affected by pandemic lockdowns, Stuff relays.
Announcing the appointment of administrators in April, Mosaic said
total sales in the first half of the financial year were down 51%
compared to the same time a year earlier.
Mosaic Brands also operates brands such as Millers, Autograph and
Katies.
In its most recent annual report, it said it had 2 million email
subscribers and mailed 15 million catalogues a year across
Australia and New Zealand.
About Ezibuy
EziBuy is an online clothing and homeware retailer and a subsidiary
of ASX-listed Mosaic Brands.
Katherine Elizabeth Barnet and Damien Mark Hodgkinson of Olvera
Advisors on April 14, 2023, were appointed as administrators of
seven entities:
- Ezibuy Operations Limited;
- Ezibuy Limited;
- Ezibuy Holdings Limited;
- Ezibuy Custodian Limited;
- New Ezibuy Limited;
- Last Stop Shop Limited; and
- Sara Apparel Limited.
OCEAN GEMS: Creditors' Proofs of Debt Due on Aug. 18
----------------------------------------------------
Creditors of Ocean Gems Limited are required to file their proofs
of debt by Aug. 18, 2023, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on July 13, 2023.
The company's liquidator is:
Brenton Hunt
PO Box 13400
City East
Christchurch 8141
QUICK SERVICE: Creditors' Proofs of Debt Due on Sept. 13
--------------------------------------------------------
Creditors of Quick Service Restaurants Limited are required to file
their proofs of debt by Sept. 13, 2023, to be included in the
company's dividend distribution.
The High Court at Hamilton appointed Janet Sprosen and Leon Francis
Bowker of KPMG as liquidators on July 10, 2023.
RAINBOW CORNER: Creditors' Proofs of Debt Due on Sept. 13
---------------------------------------------------------
Creditors of The Rainbow Corner Educational Trust New Plymouth
Limited are required to file their proofs of debt by Sept. 13,
2023, to be included in the company's dividend distribution.
The High Court at Auckland appointed Janet Sprosen and Leon Francis
Bowker of KPMG as liquidators on July 13, 2023.
VOYAGE DIGITAL: S&P Hikes ICR to BB- on Tower Sale, Outlook Stable
------------------------------------------------------------------
S&P Global Ratings raised its long-term issuer credit rating and
long-term issue credit rating on Voyage Digital (NZ) Ltd.'s senior
secured debt to 'BB-' from 'B+'. At the same time, S&P removed the
ratings from CreditWatch with positive implications, where it
placed them on Dec. 21, 2022. S&P affirmed the recovery rating of
'3'.
S&P said, "The stable rating outlook reflects our expectation that
Voyage Digital will maintain its market share and continue to
execute its growth and integration initiatives following the merger
of 2degrees and Orcon. We expect Voyage Digital to maintain its
debt-to-EBITDA ratio at about 4.0x for the next one to two years.
"We raised the ratings on Voyage Digital to 'BB-' from 'B+' to
reflect primarily our view of the company's improving financial
risk profile."
Following the completion of the sale of tower assets to Connexa,
Voyage Digital used part of the NZ$1.05 billion of cash proceeds
(compared to the announced NZ$1.076 billion sale price) to repay
about NZ$420 million of floating-rate debt. Hence, the company's
drawn term loan B debt will be about NZ$990 million.
Consequently, the S&P Global Ratings-adjusted debt-to-EBITDA ratio
will decrease to the low 4x level, compared with about 5x of
underlying earnings after the June 2022 merger between 2degrees and
Orcon. Given Voyage Digital's focus on managing its merger
integration, delivering earnings growth in the mid-single digits,
and ongoing support from shareholders through dividend deferrals,
we project our adjusted leverage estimate for the company will
trend down to about 4x over the next two years.
The adjusted leverage estimate incorporates a debt amount of about
NZ$310 million, reflecting the present value of the 20-year
(inclusive of rights of renewal) lease-back agreement with Connexa.
Voyage Digital's tower sale to Connexa includes access to 1,124
towers with an additional co-location commitment of 450 sites over
the next 10 years.
The company continues to make steady progress on the merger
integration of 2degrees and Orcon.
Voyage Digital operates in the small and mature New Zealand telco
market, which constrains our view of the company's business risk,
given the limited long-term growth potential.The company is the
third-largest player in the New Zealand telco market, with an
approximate 20% market share. The two dominant telco players in New
Zealand are Spark New Zealand Ltd. and One New Zealand Group Ltd.,
which have mature businesses and hold around a 40% market share
each.
S&P said, "We believe there is low likelihood of a fourth telco
operator entering the New Zealand market. The mature and
small-scale market constrains our rating on Voyage Digital because
of the limited long-term growth potential. The market has reached
maturity, considering its 6.2 million mobile connections, while the
population is about 5.2 million.
"Population growth will likely drive very modest market growth.
Therefore, we expect market dynamics will continue to be
price-driven because businesses and consumers alike are attuned to
the effects of inflation and wider macroeconomic headwinds.
"The stable rating outlook reflects our expectation that Voyage
Digital will maintain its market share, continue to integrate the
2degrees and Orcon businesses, and execute its growth initiatives
such that earnings growth ranges from 2% to 6% over the next two
years.
"We expect Voyage Digital will maintain a debt-to-EBITDA ratio of
about 4.0x over the period."
ESG credit indicators: E-2, S-2, G-2
ESG factors have no material influence on S&P's credit rating
analysis of Voyage Digital.
Group Influence
S&P said, "We consider Voyage Digital to be a moderately strategic
member of VAH group. Our assessment of the VAH group credit profile
includes the full consolidation of Voyage Digital and Voyage
Australia.
"We expect Voyage Digital to function stably and separately from
Voyage Australia, with two distinct boards and management teams.
Although both companies operate in the telco industry, we
anticipate little business interaction between them. This is owing
to their different geographies. Nonetheless, with the entities
sharing parents that have a long-term investment horizon, we expect
a moderate level of extraordinary support, if circumstances
require."
Voyage Digital's moderately strategic status in the VAH group does
not affect the final 'BB-' rating.
S&P said, "The 'BB-' issue rating on the NZ$990 million senior
secured term loan B debt is in line with the issuer credit rating
on the company. The '3' recovery rating reflects our expectation of
meaningful recovery prospects (55%) should a payment default event
occur.
"At the time of hypothetical default, we expect adverse competitive
industry conditions to cause steep declines in Voyage Digital's
subscribers and average revenue per user. As a result, Voyage
Digital's revenue would significantly decline, impairing its
ability to meet its cash interest payments. In this hypothetical
scenario, we believe Voyage Digital's ability to meet its financial
obligations would be impaired. Our case study assumes that the
hypothetical default scenario would occur in 2027.
"We value the company as a going concern because we believe that
following a payment default, the company is likely to be
reorganized due to the longer-term value in its established brands
and market position as the third-largest telco company in New
Zealand. We have applied a 6.0x valuation multiple to our estimate
of distressed emergence EBITDA of about NZ$107 million to project a
gross enterprise value of NZ$643 million. The net enterprise value
after administrative costs is about NZ$611 million."
-- Simulated year of default: 2027
-- Jurisdiction: New Zealand
-- EBITDA at emergence: NZ$107 million
-- EBITDA multiple: 6.0x
-- Gross enterprise value: NZ$643 million
-- Net enterprise value at emergence (after 5% administrative
costs): about NZ$611 million
-- Estimated secured first-lien claims (revolving facility 85%
drawn including prepetition interest): approximately NZ$1.70
billion
-- Recovery expectations: 50%-70% (rounded estimate: 55%)
Recovery rating: 3
*All debt amounts include six months of prepetition interest.
=================
S I N G A P O R E
=================
DERMATOLOGY & SURGERY: Court to Hear Wind-Up Petition on Aug. 28
----------------------------------------------------------------
A petition to wind up the operations of Dermatology & Surgery
Clinic (Orchard) Pte Ltd will be heard before the High Court of
Singapore on Aug. 28, 2023, at 10:00 a.m.
Cameron Lindsay Duncan and David Dong-Won Kim, the company's
judicial managers, filed the wind up petition on June 28, 2023.
The Petitioner's solicitors are:
Oon & Bazul LLP
36 Robinson Rd, #08-01/06
City House
Singapore 068877
KEPPEL LAND: Creditors' Proofs of Debt Due on Aug. 21
-----------------------------------------------------
Creditors of Keppel Land Construction Management Pte. Ltd. are
required to file their proofs of debt by Aug. 21, 2023, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on July 18, 2023.
The company's liquidators are:
Gary Loh Weng Fatt
Leow Quek Shiong
Seah Roh Lin
c/o BDO Advisory Pte Ltd
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
LOWI PTE: Court Enters Wind-Up Order
------------------------------------
The High Court of Singapore entered an order on July 14, 2023, to
wind up the operations of Lowi Pte. Limited.
Maybank Singapore Limited filed the petition against the company.
The company's liquidator is:
Gary Loh Weng Fatt
Leow Quek Shiong
c/o BDO Advisory Pte Ltd
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
OSTARA INVESTMENTS: Creditors' Proofs of Debt Due on Aug. 21
------------------------------------------------------------
Creditors of Ostara Investments (Singapore) Pte Pte. Ltd. are
required to file their proofs of debt by Aug. 21, 2023, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on July 12, 2023.
The company's liquidators are:
Ong Kok Yeong David
c/o Tricor Singapore Pte. Ltd.
80 Robinson Road #02-00
Singapore 068898
REVBUILD ASIA: Court Enters Wind-Up Order
-----------------------------------------
The High Court of Singapore entered an order on July 14, 2023, to
wind up the operations of Revbuild Asia Pte. Ltd.
DBS Bank Ltd filed the petition against the company.
The company's liquidators are:
Gary Loh Weng Fatt
Leow Quek Shiong
c/o BDO Advisory Pte Ltd
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
=================
S R I L A N K A
=================
SRI LANKA: Could Exit Bankruptcy by September, Says State Minister
------------------------------------------------------------------
Daily News reports that Finance State Minister Shehan Semasinghe
told Parliament July 20 that Sri Lanka could exit bankruptcy by
September.
He also mentioned that with the implementation of the
Anti-Corruption Act, Sri Lanka will be transformed into a
corruption-free country, Daily News relates. The State Minister
said this during the debate on the Central Bank Bill.
Semasinghe also said: "Sri Lanka has received GSP tax relief for
another four years. That's a big victory. International confidence
has been confirmed about the economic stability of the country. The
legal framework is being established to prevent the situation from
happening again."
"Starting the e-procurement process there is no doubt about the
strengthening of the country's economy. The situation is set to
meet the International Monetary Fund. International trust should be
used for the development of the tourism industry to promote
investment. We are on the right track today," the report quotes
Semasinghe as saying.
Sri Lanka, formerly known as Ceylon and officially the Democratic
Socialist Republic of Sri Lanka, is an island country in South
Asia. It lies in the Indian Ocean, southwest of the Bay of Bengal,
and southeast of the Arabian Sea; it is separated from the Indian
subcontinent by the Gulf of Mannar and the Palk Strait. Sri Lanka
shares a maritime border with India and the Maldives. Sri
Jayawardenepura Kotte is its legislative capital, and Colombo is
its largest city and financial centre.
The island nation defaulted on its foreign debt for the first time
in its history in April last year as the worst financial crisis
since independence from Britain in 1948 crushed its economy.
As reported in the Troubled Company Reporter-Asia Pacific in
mid-July 2023, Fitch Ratings has downgraded Sri Lanka's Long-Term
Local-Currency (LTLC) Issuer Default Rating (IDR) to 'C' from 'CC'.
The issue ratings on local-currency bonds have also been downgraded
to 'C' from 'CC'. The Long-Term Foreign-Currency (LTFC) IDR has
been affirmed at 'RD' (Restricted Default) and the Country Ceiling
at 'B-'. Fitch typically does not assign Outlooks to ratings of
'CCC+' or below.
===============
T H A I L A N D
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STARK CORP: Seeks to Further Delay Report's Deadline
----------------------------------------------------
Bangkok Post reports that scandal-hit Stark Corporation is asking
for a further delay in submitting its extended-scope special audit
report, saying asset seizures by concerned agencies had disrupted
the business and its filing to the Bankruptcy Court for capital and
debt restructuring.
In a filing to the Stock Exchange of Thailand, the wire and cable
maker said seizures of the group's assets meant that the company
was not in a position to fully negotiate with creditors and
restructure the business, Bangkok Post relates.
Under such a situation, it would be difficult for the company to
raise capital or consider seeking new investors in order to
increase the liquidity, it noted.
As the assets were being seized, which has generated a significant
negative impact on the group, Stark has had to dedicate personnel
and time to gathering information and documents for the Securities
and Exchange Commission (SEC) for the company to carry out
necessary transactions and prevent problems arising from the
interruption, director Attapol Watjarapairoj said in the filing.
"Therefore, the company is unable to complete the extended-scope
special audit by July 17. We thus submit a request for an extension
of time to perform the act for a second time until Sept 29," he
added.
On July 18, the SEC said in a statement that it would consider
Stark's request to delay the submission of its special audit,
according to the report.
The SEC's order to seize Stark's assets had an impact on the
confidence of the company's partners and customers, the recruitment
of personnel, including directors and employees in key positions,
its ability to manage the business and solve issues of the group,
and led to the resignation of skilled workers. Therefore, the
group's operations lacked continuity and had led to a significant
interruption, Mr. Attapol, as cited by Bangkok Post, said.
According to Bangkok Post, Mr. Attapol said Stark is in the process
of examining its outstanding bank statements, of which about 75%
have been reviewed. However, it had difficulty in obtaining
statements from some banks, and the documents received did not
provide sufficient detail to identify linkages between the payee
and payer.
Therefore, the company and the auditor would need to spend a great
deal of time examining the information gathered from such
documents. Document preparation for affiliates including Phelps
Dodge International (Thailand), Adisorn Songkhla Co and Thai Cable
International Co have also not been completed yet.
"It is necessary for the company to take any action for the SEC to
allow the group to conduct financial transactions, and any
activities necessary to continue operating the business normally as
soon as possible in order to mitigate the impact on all parties
involved," the report quotes Mr. Attapol as saying.
About Stark Corp
Headquartered in Bangkok, Thailand, Stark Corporation Public
Company Limited -- https://www.starkcorporation.com/ -- together
with its subsidiaries, engages in the electric wire and cable
business in Thailand and internationally. It manufactures,
distributes, trades in, and provides service test for wire products
made from copper and aluminum, which are used in electrical
transition, telecommunications, and construction applications. The
company also offers manpower services; human resource management
and recruitment services for the petroleum industry; warehouses
rental services; transportation services; and consultancy services
related to petroleum business. In addition, it engages in the
manufacture of electric wires, cables and non-ferrous; import and
manufacture copper and aluminuium for cable wire; tolling of copper
rod; sales and distribution of accessories for energy and
telecommunication applications; and develop the infrastructure
relating to energy and digital technology, as well as trading of
other materials. The company was formerly known as Siam Inter
Multimedia Public Company Limited and changed its name to Stark
Corporation Public Company Limited in July 2019.
As reported in the Troubled Company Reporter-Asia Pacific on July
7, 2023, the Securities and Exchange Commission (SEC) has filed
charges against the largest shareholder and others involved in the
management of Stark Corporation Public Company Limited, the
industrial cable maker at the centre of an accounting scandal and
debt default.
The Bangkok-based SEC filed charges of financial misconduct against
10 combined entities and individuals, including Stark's largest
holder Vonnarat Tangkaravakoon, with the Department of Special
Investigation (DSI), according Bangkok Post.
The charges come after Stark faced a criminal investigation and
also a class-action lawsuit following its revelations of
irregularities in past accounting. Restated financial results
showed it made a net loss in the past two years, and that its
liabilities exceeded assets. The company in June defaulted on some
of its THB39 billion in liabilities. The shares were suspended
after sinking 99% this year.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
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Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2023. All rights reserved. ISSN: 1520-9482.
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