/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/230726.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, July 26, 2023, Vol. 26, No. 149 Headlines A U S T R A L I A BUILDPLATINUM PTY: First Creditors' Meeting Set for Aug. 1 DHANOA PTY: First Creditors' Meeting Set for Aug. 2 HEADLAND FOOD: Second Creditors' Meeting Set for July 31 HWT GROUP: Second Creditors' Meeting Set for July 31 MODCO RESIDENTIAL: Goes Into Voluntary Administration WOK'D PTY: Second Creditors' Meeting Set for July 28 B A N G L A D E S H BANGLADESH: S&P Affirms 'BB-/B' SCRs & Alters Outlook to Negative C H I N A BINHAI INVESTMENT: Fitch Affirms BB+ LongTerm IDRs, Outlook Stable I N D I A ACTION INDUSTRIAL: ICRA Keeps B+ Debt Ratings in Not Cooperating ARUPPUKOTTAI SHRI: ICRA Keeps B Debt Ratings in Not Cooperating ASHIANA LANDCRAFT: ICRA Keeps D Debt Rating in Not Cooperating AVADH COTTON: ICRA Keeps B Debt Ratings in Not Cooperating BALAJI ACQUA: CARE Keeps B- Debt Rating in Not Cooperating BALSARA ENGINEERING: Liquidation Process Case Summary BIMLA RICE: CARE Keeps B- Debt Rating in Not Cooperating Category BYJU'S: Creditors Agree to Amend $1.2 Billion Loan Terms CALL EXPRESS: ICRA Lowers Rating on INR50cr Term Loan to D CENTURY SHELTORS: Ind-Ra Affirms D LongTerm Issuer Rating CHHATRAPATI SAHAKARI: Ind-Ra Gives D Term Loan Rating CLASSIC ENGICON: Ind-Ra Affirms BB+ LongTerm Issuer Rating CLASSIC MICROTECH: ICRA Keeps B Debt Rating in Not Cooperating DAGAR FARM: CARE Keeps D Debt Rating in Not Cooperating Category DEVI IRON: ICRA Keeps B+ Debt Ratings in Not Cooperating Category DHARAMCHAND PARASCHAND: ICRA Keeps D Ratings in Not Cooperating DHIRAJ FOUNDATION: ICRA Keeps B- Debt Ratings in Not Cooperating DHURIA RICE: ICRA Keeps B Debt Rating in Not Cooperating Category FINE WOOD: Ind-Ra Keeps BB+ LT Issuer Rating in Non-Cooperating GALAXY CONCAB: CARE Lowers Rating on INR8.13cr LT Loan to C GVG KRAFT: Ind-Ra Keeps BB+ LT Issuer Rating in Non-Cooperating GVR ASHOKA: Ind-Ra Cuts LongTerm Issuer Rating to D INDIAN INFRADEVELOPERS: CARE Keeps B- Rating in Not Cooperating J M CONSTRUCTIONS: ICRA Moves B Debt Ratings to Not Cooperating J PAN: ICRA Keeps B+ Debt Ratings in Not Cooperating Category JABALPUR ENTERTAINMENT: ICRA Keeps B+ Ratings in Not Cooperating JAGABANDHU ENTERPRISERS: CARE Keeps D Ratings in Not Cooperating JOSHODA OIL: CARE Keeps B Debt Rating in Not Cooperating Category JP SORTEX: ICRA Keeps B+ Debt Ratings in Not Cooperating Category KOPELL GROUNDING: Ind-Ra Affirms BB+ Issuer Rating, Outlook Stable KUMARAPALAYAM TOLLWAYS: Ind-Ra Affirms D Bank Loan Issuer Rating KVK BIO: Ind-Ra Keeps D Term Loan Rating in Non-Cooperating LIBAS COSUMER: CARE Lowers Rating on INR13.01cr Loan to C MAA SHEETLA: ICRA Keeps B+ Debt Rating in Not Cooperating MEDIPARK HEALTHCARE: CARE Keeps B- Debt Rating in Not Cooperating NAVYA FOODS: CARE Keeps B+ Debt Rating in Not Cooperating NECTAR CRAFTS: ICRA Keeps B+ Debt Ratings in Not Cooperating NURSINGSAHAY MUDUNGOPAL: CARE Keeps C Rating in Not Cooperating PARCO INSTITUTE: CARE Lowers Rating on INR87cr LT Loan to D PHOSPHATE COMPANY: Ind-Ra Hikes LongTerm Issuer Rating to 'BB+' PRASSANNA SPINNING: Ind-Ra Assigns BB+ Term Loan Rating RKN PROJECTS: CARE Keeps D Debt Ratings in Not Cooperating RNM INFRA: Liquidation Process Case Summary ROYAL MUDHOL: Ind-Ra Keeps BB+ Issuer Rating in Non-Cooperating SADARAM JINING: CARE Keeps D Debt Rating in Not Cooperating SHIVAM PARIVAR: Insolvency Resolution Process Case Summary SHIVPRASAD FOODS: Ind-Ra Moves B+ Issuer Rating to NonCooperating SUPERIOR FILMS: Ind-Ra Affirms B+ Issuer Rating, Outlook Stable SURYATAAP ENERGIES: Ind-Ra Keeps B+ Rating in Non-Cooperating TERRY TOWELS: Ind-Ra Cuts LongTerm Issuer Rating to 'D' THREE C SHELTERS: Buyers Can File Their Claims Within 4 Weeks N E W Z E A L A N D FCL NV: Court to Hear Wind-Up Petition on Aug. 1 FORMCO CONSTRUCTION: Creditors' Proofs of Debt Due on Aug. 18 JUN YUE: Benjamin Francis Appointed as Receiver LUXURY NAILS: Court to Hear Wind-Up Petition on July 28 WAIRARAPA TYRE: Creditors' Proofs of Debt Due on Aug. 16 P H I L I P P I N E S PH RESORTS: Seeks to Increase Capital Stock S I N G A P O R E FINGER SPA: Commences Wind-Up Proceedings FIRST CENCON: Commences Wind-Up Proceedings LEWEK SHIPPING: Final Meeting Set for Aug. 24 MW GROUP: Creditors' Meetings Set for Aug. 1 SAL TRADING: Court Enters Wind-Up Order - - - - - ================= A U S T R A L I A ================= BUILDPLATINUM PTY: First Creditors' Meeting Set for Aug. 1 ---------------------------------------------------------- A first meeting of the creditors in the proceedings of Buildplatinum Pty Ltd will be held on Aug. 1, 2023, at 10:30 a.m. at the offices of Worrells at Level 2, AMP Building, 1 Hobart Place in Canberra City and via virtual meeting technology. Stephen John Hundy of Worrells was appointed as administrator of the company on July 20, 2023. DHANOA PTY: First Creditors' Meeting Set for Aug. 2 --------------------------------------------------- A first meeting of the creditors in the proceedings of Dhanoa Pty Ltd will be held on Aug. 2, 2023, at 3:30 p.m. at the offices of Worrells at Level 2, AMP Building, 1 Hobart Place in Canberra. Stephen John Hundy of Worrells was appointed as administrator of the company on July 21, 2023. HEADLAND FOOD: Second Creditors' Meeting Set for July 31 -------------------------------------------------------- A second meeting of creditors in the proceedings of Headland Food Group Pty Ltd, North Australian Fishing Co.Pty Ltd and Wild Ocean Australia Pty Ltd has been set for July 31, 2023 at 10:00 a.m, 10:45 a.m, and 11:30 a.m. respectively, at Double Tree Hilton, The Darwin Room, 116 Esplanade in Darwin City and via virtual meeting facilities. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by July 21, 2023 at 4:00 p.m. Peter Anthony Lucas of P A Lucas & Co was appointed as administrator of the company on June 26, 2023. HWT GROUP: Second Creditors' Meeting Set for July 31 ---------------------------------------------------- A second meeting of creditors in the proceedings of HWT Group Australia Pty Ltd has been set for July 31, 2023 at 9:00 a.m. at 22 Market Street in Brisbane and via virtual meeting technology. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by July 21, 2023 at 5:00 p.m. Terry John Rose and Terry Grant van der Velde of SV Partners were appointed as administrators of the company on June 26, 2023. MODCO RESIDENTIAL: Goes Into Voluntary Administration ----------------------------------------------------- WAToday reports that trouble-plagued builder Modco Residential has gone into voluntary administration blaming unprecedented industry challenges and intense media scrutiny. WAToday relates that director Damien Clancy said in a statement released on July 24 that it was a moment of "profound sadness" for the fledgling company that was launched to great fanfare less than two years ago. Founded by Perth glamour couple Yusuf Khan and his wife Cynthia Lu in the middle of the global pandemic, a key pillar of the company's strategy was to guarantee cost-effective home builds within 20 weeks. But as its customer base rapidly grew, its construction times ballooned, leaving behind a trail of broken promises and dozens of distressed homeowners, WAToday says. "Despite our efforts to overcome adversities expected in building a growing business, the rapid and unforeseen external challenges ranging from unprecedented industry challenges, perpetuated by a series of controversial articles that created distrust amongst stakeholders became an insurmountable challenge," WAToday quotes Mr. Clancy as saying. "What initially started as a nationwide industry challenge of increased costs of materials and labour and shortage of skilled trade forcing many builders into administration in the past financial year, was then exacerbated by the intense media scrutiny targeting Modco Residential creating distrust amongst our trades, vendors, staff, shareholders, clients and the industry insurer QBE. "This caused significant strain on business operations and made it exceptionally challenging for us to acquire skilled tradespeople, retain staff and continue our operations." According to WAToday, Mr. Clancy said he hoped the closure of Modco would be the catalyst to highlight the need for systemic change and industry support to address the issues that persist within the construction sector. Khan and Lu failed to front a Federal Court hearing last week amid a wind-up bid at the hands of a growing list of fed-up creditors. In May, Building and Energy warned the company appeared to be in significant financial stress, revealing it had been contacted by several homeowners, subcontractors and suppliers who had raised concerns about Modco's ability to pay its debts as when they fall due, WAToday recalls. In some cases, the regulator said no work was taking place and that progress payments were being demanded well before the work reaching the necessary stage. It also said it had launched a probe to review whether the company's building services were being properly supervised. GTS Advisory has been appointed administrator, the report adds. WOK'D PTY: Second Creditors' Meeting Set for July 28 ---------------------------------------------------- A second meeting of creditors in the proceedings of Wok'D Pty Ltd, Wok'D Chinese Kitchen Pty Ltd, Project Knox Pty Ltd, Neuy Restaurants Pty Ltd, and Wok'd Gourmet Chinese Pty Ltd has been set for July 28, 2023 at 9:30 a.m. at the offices of Cor Cordis at Level 29, 360 Collins Street at Melbourne and virtually by electronic facilities. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by July 27, 2023 at 5:00 p.m. Sam Kaso and Daniel P Juratowitch of Cor Cordis were appointed as administrators of the company on June 23, 2023. =================== B A N G L A D E S H =================== BANGLADESH: S&P Affirms 'BB-/B' SCRs & Alters Outlook to Negative ----------------------------------------------------------------- S&P Global Ratings, on July 25, 2023, revised its long-term rating outlook on Bangladesh to negative from stable. At the same time, S&P affirmed its 'BB-' long-term and 'B' short-term sovereign credit ratings on Bangladesh. Outlook S&P revised the long-term rating outlook on Bangladesh to negative from stable to reflect the risk that its external liquidity position could deteriorate further over the next 12 months. S&P also affirmed its 'BB-' long-term and 'B' short-term sovereign credit ratings on Bangladesh. Downside scenario S&P may lower the ratings on Bangladesh if net external debt or liquidity metrics worsen further, such that narrow net external debt surpasses 100% of current account receipts, or gross external financing needs exceed 100% of current account receipts plus usable reserves, on a sustained basis. S&P said, "Lower generation of current account receipts than we expect, a higher overall current account deficit than we forecast, or a failure to materially boost foreign exchange reserves would indicate downward pressure on the rating. "We could also downgrade Bangladesh if we observe a material and sustained rise in commercial banks' ownership of government debt as a proportion of the sector's total assets, signifying a limited ability for banks to lend more to the government without crowding out private sector borrowing." Upside scenario S&P said, "We may revise the outlook to stable if Bangladesh materially improves its external position, which would likely be indicated by a substantial increase in foreign exchange reserves combined with a modest current account deficit, and healthy growth in current account receipts." Rationale S&P revised the outlook to negative from stable to reflect sustained pressure on Bangladesh's external position, marked in particular by a continued decline in foreign exchange reserves. Bangladesh's external financial assets have fallen markedly over the past year, despite the introduction of a sweeping IMF reform and funding program, alongside a substantially lower current account deficit. In January 2023, Bangladesh agreed to a 42-month Extended Credit Facility and Extended Funding Facility (ECF/EFF), as well as a Resilience and Sustainability Facility with the IMF. Total funding under the three facilities will amount to US$4.7 billion over the course of 42 months from the date of the agreement. The ECF/EFF programs will emphasize reforms to rebuild Bangladesh's diminished external buffers, and to strengthen the management of its public finances. S&P views the programs as an important anchor for stabilizing Bangladesh's external position, which has deteriorated over the past 18 months and continues to experience net financial outflows. S&P's ratings on Bangladesh reflect the country's modest per capita income and limited fiscal flexibility owing to a combination of low revenue-generation capacity and high interest burden. Evolving administrative and institutional settings represent additional rating constraints. S&P weighs these factors against consistently high economic growth and an external position that's supported by substantive engagement with bilateral and multilateral development partners, large remittances from overseas Bangladeshi workers, and a globally competitive garment sector. Despite this structural support, Bangladesh has witnessed a material decline in the strength of its external balance sheet and liquidity position. Institutional and economic profile: Growth slowing as economy experiences necessary rebalancing -- Bangladesh's economy is likely to expand at 6.0%-6.4% over the next three years, reflecting a slight moderation compared with the growth trend of its long-term average real GDP. -- The downshift in headline growth reflects necessary rebalancing following a period of overheating. Faster economic growth in fiscals 2021 and 2022 (ended June 30) was accompanied by a weakening of Bangladesh's external position, and S&P anticipates relatively slower domestic demand conditions as part of the economy's stabilization. -- Bangladesh's highly concentrated political landscape may constrain the effectiveness of institutions and limits checks and balances on the government. Bangladesh's economy is moderating following two years of fast growth. As higher inflation, interest rates, and policies aimed at managing imports continue to bite, domestic demand growth will likely remain modest in comparison to the long-term trend. S&P estimates that Bangladesh's economic growth slowed to 5.5% in fiscal 2023, versus 7.1% the previous year, as the aforementioned challenges cooled domestic consumption and investment activity. Soft external demand conditions are likely to persist for at least the remainder of 2023, with a gradual recovery set to take shape from 2024. Against a weaker external backdrop, domestic demand conditions in Bangladesh are also likely to remain subdued as a weaker Bangladeshi taka (BDT) and elevated commodity prices undermine purchasing power. Modest per capita income, which we estimate at less than US$2,700 for fiscal 2024, remains one of Bangladesh's main rating constraints. This level of per capita income limits the fiscal and monetary flexibility needed to respond to exogenous shocks. Bangladesh's 10-year weighted average real per capita GDP growth of about 5.1% helps to mitigate these weaknesses. The economy's long-term trend growth rate is much stronger than sovereigns at a similar level of income, which is supportive of our credit ratings on Bangladesh. S&P expects Bangladesh's strong trend growth performance to remain largely intact, even as the pace of expansion slows somewhat relative to Bangladesh's post-pandemic recovery period. Bangladesh's garment industry remains highly competitive in a global context, with low unit labor costs and ample supply of labor. Demographics continue to favor Bangladesh, and the government is working on strengthening access to key external markets ahead of its expected graduation from least developed country (LDC) status in 2026. That said, Bangladesh's electricity generation infrastructure has been increasingly challenged by adverse weather events and higher energy input costs over the past 12 months, and this has reportedly hit the garment manufacturing sector in some cases. Improvements to the related infrastructure will be important, in our view, in order to support continued rapid economic growth over the next three to four years. Bangladesh's highly concentrated domestic political conditions may undermine the predictability of future policy responses. The confrontational stance between the ruling Awami League and opposition Bangladesh Nationalist Party (BNP) reflects the deep division between the historically prominent political parties. Bangladesh's foreign direct investment has remained persistently low, given the country's evolving institutional settings, infrastructure deficiencies, high levels of perceived corruption, and uneven business environment. The political landscape in Bangladesh remains polarized, with considerable power centered with the ruling Awami League. The opposition's representation in parliament remains extremely small, limiting checks and balances on the government. Bangladesh will hold parliamentary elections in January 2024, though it is currently unclear whether the BNP will participate. Flexibility and performance profile: Bangladesh's external profile remains under pressure despite IMF program, lower import bill -- Bangladesh's external profile remains under pressure despite the introduction of the landmark IMF funding facilities, and a notable decline in imports over recent quarters. -- Foreign exchange reserves continue to decline, suggesting ongoing financial account outflows even as the goods trade balance improves. A reversal of this trend will be necessary to stabilize Bangladesh's external liquidity metrics over the next twelve months. -- Bangladesh's interest burden is considerable, in part due to the government's very low revenue generation. However, the country relies entirely on multilateral and official lending for its foreign currency borrowing, which partially mitigates risks to its debt profile. Bangladesh's external profile remains under pressure despite a narrowing of its current account deficit. Falling foreign exchange reserves reflect continued net balance of payments outflows, suggesting elevated demand for dollars relative to the taka, which is facing sustained depreciatory pressure. S&P has also adjusted its calculation of Bangladesh's usable foreign exchange reserves materially lower, primarily to account for central bank lending to quasi-fiscal programs which may impair the liquidity of allocated funds, as well as reserve related liabilities, and reserves deposited in domestic banks. External trade flows are beginning to show signs of stabilization, and S&P anticipates that Bangladesh's current account deficit is unlikely to revert to the unsustainable levels witnessed in fiscal 2022. After falling by 14.5% in fiscal 2022, secondary income transfers (a close proxy for remittances) rose by about 1% in the 11 months through May 2023, versus the same period in the previous fiscal year. Meanwhile, goods exports grew by 6.8%, compared with a 14.1% decline in the value of imported goods. Readymade garment exports rose by about 10.7% during the first 11 months of fiscal 2023, despite variable external demand conditions and occasional domestic electricity shortages. These developments have helped to reduce Bangladesh's current account deficit to around 1% of GDP in the outgoing fiscal year, versus a multi-year high of 4.3% in fiscal 2022. Bangladesh Bank's limitations on the issuance of new letters of credit to fund external transactions have also capped import payments. The trajectory of Bangladesh's current account dynamics will be critical to the stabilization of its broader external metrics. S&P foresees a roughly stable current account deficit averaging slightly less than 1% of GDP through fiscal 2026. This is driven by its expectations of roughly flat energy commodity prices over that period, combined with moderated domestic demand driven by the weaker taka, tighter monetary conditions, and continued administrative measures by the central bank. Nevertheless, Bangladesh's external buffers have deteriorated, meaning that its external liquidity position is now more sensitive to fluctuations in its current account, with a higher degree of vulnerability should the trade deficit begin to rise again, or if remittances fall short of our forecasts. A rapid recovery in import demand, or a loosening of policies aimed at curbing the generation of LCs, could also drive a higher current account deficit. Bangladesh's falling foreign exchange reserves, and the recent depreciation of the taka have contributed to a weaker external liquidity ratio, with its gross external financing needs averaging slightly less than 97% of current account receipts plus usable foreign exchange reserves over the next three years. Bangladesh's external profile draws substantial donor support, ensuring that the bulk of public external debt is low-cost borrowing with long maturities. This support is underpinned by the country's structured funding programs agreed with the IMF earlier this year. S&P said, "We anticipate that the EFF will provide some support for Bangladesh's fiscal and external settings over the long run. Key provisions of the reform program include increasing exchange rate flexibility, boosting the government's fiscal space by mobilizing revenue and rationalizing subsidies, and arresting the decline in foreign exchange reserves. "We estimate Bangladesh's fiscal deficit will be roughly stable over the next few years, following a shortfall of 4.6% of GDP in fiscal 2022. However, we forecast Bangladesh's change in net general government debt will be slightly higher, owing to continued depreciation in the taka, and the government's material exposure to foreign currency-denominated debt, which we project at more than 40% of its outstanding debt stock." Despite higher pandemic spending and continued efforts to boost capital expenditure over recent years, many basic social and infrastructure needs in Bangladesh remain unmet, implying a higher potential expenditure burden in the future. Bangladesh's net general government debt remains moderate, and S&P estimates that it will average 33.9% of GDP through fiscal 2026. The government continues to fund itself partially through the issuance of costly national savings certificates (NSCs), with interest rates well above the market rate. While S&P expects the government to eventually shift toward less costly borrowing over the long term, this transition is likely to take a while, because it will require the broader development of Bangladesh's debt capital markets. Bangladesh Bank has also extensively increased its purchases of government debt over the past year, with a surge in government debt held by the central bank of just over BDT1 trillion. The costly nature of NSC funding, in addition to the relatively high domestic cost of capital, contributes to Bangladesh's elevated interest burden. S&P forecasts the government's interest payments will account for greater than 20% of revenue through at least 2026. The government may also rely more heavily on banks for local currency funding. Should the resident banking sector's claims on the government continue to rise as a share of the banking sector's overall balance sheet, this could crowd out private-sector borrowing or limit the availability of additional funds to the government, in S&P's view. Bangladesh's narrow revenue base constrains the government's flexibility to provide fiscal support to the economy during periods of stress, and to fund important social and capital expenditure requirements. S&P said, "We estimate that general government revenue rose slightly to 8.8% of GDP in fiscal 2023, from 8.5%, though revenue generation remains critically low as a share of the economy. We forecast a gradual improvement in the government's revenue generation efforts over the next three years, aided by the IMF program, though we do not expect it to surpass 10% of GDP during that period." Some measures introduced during the pandemic will act as a continued drag on the government's fiscal accounts over the longer term. These measures include a higher taxable income threshold for individuals, and sequential reductions in the tax rates for both unlisted and listed companies. These steps have curtailed upside for the government's weak revenue generation framework. The sovereign faces limited risk of contingent liabilities from the banking sector. The sector is relatively small with assets less than 100% of GDP. S&P classifies Bangladesh's banking sector in group '9' under its Banking Industry Credit Risk Assessment (with '1' being the highest assessment and '10' being the lowest). State-owned commercial banks (SOCBs) have notable risks relative to private-sector banks. SOCBs account for less than 30% of total banking sector assets, and their nonperforming loans ratio is considerably higher than that of peer commercial banks. S&P said, "We view Bangladesh's monetary assessment as a neutral factor to the rating. The central bank's limited independence, multiple mandates, and underdeveloped capital markets hamper monetary flexibility. We consider Bangladesh's exchange rate regime as a crawl-like arrangement, though the trading mechanism was further liberalized in June 2022." Since then, the central bank has gradually loosened trading conditions for the currency, which has depreciated by approximately 13.7% over the past 12 months. S&P anticipates further progress in establishing a more market-guided mechanism for the taka, including the eventual unification of the exchange rates for various types of traders, under the structural benchmarks introduced as part of the IMF program. More flexibility should help to restore competitiveness relative to key trading partners, and to manage demand for imports. At the same time, depreciation in the currency is adding to domestic inflation pressures, and will make external debt servicing costs more expensive. Bangladesh's central bank is fighting rising inflationary pressures, even as price pressures in the global economy begin to cool. Inflation fell slightly to 9.7% year on year in June 2023, versus 9.9% in May, but well above the 7.6% rate observed in June 2022. Since 2015, inflation has generally remained below 6% annually, it may take some time to return inflation to that level as the impact of the depreciation of the taka continues to work its way through the economy. In accordance with S&P's relevant policies and procedures, the Rating Committee was composed of analysts that are qualified to vote in the committee, with sufficient experience to convey the appropriate level of knowledge and understanding of the methodology applicable. At the onset of the committee, the chair confirmed that the information provided to the Rating Committee by the primary analyst had been distributed in a timely manner and was sufficient for Committee members to make an informed decision. After the primary analyst gave opening remarks and explained the recommendation, the Committee discussed key rating factors and critical issues in accordance with the relevant criteria. Qualitative and quantitative risk factors were considered and discussed, looking at track-record and forecasts. The committee's assessment of the key rating factors is reflected in the Ratings Score Snapshot above. The chair ensured every voting member was given the opportunity to articulate his/her opinion. The chair or designee reviewed the draft report to ensure consistency with the Committee decision. The views and the decision of the rating committee are summarized in the above rationale and outlook. The weighting of all rating factors is described in the methodology used in this rating action. Ratings List RATINGS AFFIRMED; OUTLOOK ACTION TO FROM BANGLADESH Sovereign Credit Rating BB-/Negative/B BB-/Stable/B RATINGS AFFIRMED BANGLADESH Transfer & Convertibility Assessment Local Currency BB- ========= C H I N A ========= BINHAI INVESTMENT: Fitch Affirms BB+ LongTerm IDRs, Outlook Stable ------------------------------------------------------------------ Fitch Ratings has affirmed China-based city-gas operator Binhai Investment Company Limited's Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'BB+'. The Outlook is Stable. Fitch has also affirmed Binhai's senior unsecured rating at 'BB+'. Binhai's ratings are based on a one-notch uplift to its Standalone Credit Profile (SCP) of 'bb', reflecting a moderate likelihood of support from the Tianjin municipal government under Fitch's Government-Related Entities (GRE) Rating Criteria. Binhai is 40% owned by TEDA Investment Holding Company Ltd, which is in turn fully owned by the Tianjin State-owned Assets Supervision and Administration Commission (SASAC). Fitch believe the Tianjin government has channels to provide support directly to Binhai and that the existence of TEDA will not prevent Binhai from receiving timely support. The 'bb' SCP takes into account the stable cash flow generation from retail gas sales and moderate leverage, but is constrained by Binhai's small operating scale, geographical asset concentration and, to a lesser extent, modestly larger exposure to gas connections than peers with higher SCPs. KEY RATING DRIVERS Dollar Margin to Recover: Fitch expect the dollar margin to recover by HKD0.05/cubic metres (cbm) in 2023 amid smoother cost pass-through for residential users and lower gas procurement costs. Binhai says that several cities have announced residential gas tariff hikes, while plans to raise tariffs in other cities are progressing. Binhai should also benefit from a plunge in imported liquefied natural gas (LNG) prices since early 2023, as it may be able to purchase gas from newly operating LNG terminals in Tianjin. Binhai achieved cost savings in 2020-2021 due to its strategic alliance with China Petroleum & Chemical Corporation (Sinopec) (A+/Stable), which sourced a portion of gas from cost-competitive LNG. Gas Sales Volume Resilient: Fitch expect gas sales volume to rise by 16% in 2023, driven by the contribution from a new gas-fired power plant. Industrial gas sales volume is likely to increase by around 10% on a further expansion of the user base, while Fitch expect residential sales growth to slow. Binhai's gas sales volume growth reached 15% in 2022, against slower single-digit growth at most rated peers, due to its lower exposure to commercial users, resilient gas usage by its industrial users during the Covid-19 pandemic as well as the company's efforts in expanding its industrial user base. Connections Still Weak: New residential connections dropped by 35% in 2022 amid a property-market downturn and pandemic-related lockdowns, but should recover from 2024, as Binhai continues to expand its concession area. Fitch forecast residential connections to further decline by 1% in 2023, as the property market remains weak. Connection EBITDA is likely to fall by 23%, following 2022's weak connections, as revenue is booked as a percentage of completion. Fitch expect the EBITDA contribution from connections to drop to 30%, from over 40% previously, though this is still higher than at most rated peers. Leverage Rise Temporary: Fitch expect EBITDA net leverage to edge up to 4.6x, from 4.4x in 2022. Net debt is likely to rise in 2023 due to negative free cash flow and EBITDA growth will be limited, dragged down by declining connection EBITDA. However, EBITDA net leverage should decline to around 4.1x from 2024, based on Fitch capex assumptions and the declining impact from the weak connections business. The full-year impact from higher residential tariffs will be reflected in 2024, enabling EBITDA growth to resume. Status, Ownership and Control Revised to 'Strong': Fitch have reassessed this factor as 'Strong', from 'Weak', as recent evidence shows that Tianjin SASAC retained its broad control of Binhai's strategies, financing and investment after Sinopec was introduced as a minority shareholder. TEDA approves most of Binhai's operational, investing and financing decisions, but major investment and shareholding changes require approval from Tianjin SASAC. Tianjin SASAC also oversees Binhai's financials via control of its board and a monthly reporting system. The government's support for Binhai's refinancing of offshore notes in 2020 also suggests smooth direct channels for support to flow in. 'Moderate' Support Record: Fitch factor assessment reflects the government's past support for Binhai's predecessor, Wah Sang Gas Hld Ltd, between 2004 and 2009, when the company was in distress. The Tianjin government also helped coordinate offshore lenders to arrange refinancing of Binhai's US-dollar bond that matured in 2020. 'Moderate' Socio-Political Implications of Default: Gas is an important fuel for heating and power generation in Tianjin. As a natural monopoly, a default of Binhai will disrupt gas supply in its service areas, as it will be difficult to source alternative fuel. However, Binhai has a relatively small market share in Tianjin, as its main service area is in Binhai New District. That said, the company's market share is increasing as it expands in other districts in Tianjin. 'Moderate' Financial Implications of Default: A default of Binhai will damage market sentiment towards its immediate parent, TEDA, which is one of the largest funding vehicles in Tianjin, as well as for other local GREs. The impact, however, is likely to be lower than for larger and more prominent GREs, including TEDA. DERIVATION SUMMARY Binhai's has a smaller scale and higher leverage than ENN Energy Holdings Limited (BBB+/Positive). Its profitability is also more volatile due to lower geographical diversification and a higher profit contribution from gas connections. Binhai's IDR incorporates a one-notch uplift from its SCP based on potential support from Tianjin municipality under Fitch's GRE Rating Criteria. Compared with GRE peers, such as Shanghai Construction Group Co., Ltd. (SCGC, BBB+/Stable), Binhai has a 'Moderate' assessment for social-political implications of default, while SCGC is assessed at 'Weak'. This is because the nature of the engineering and construction business and Shanghai's high urbanisation rate limits the social consequences should SCGC default, while Binhai's gas provision is closely linked to the wellbeing of users, especially during the winter heating season. Fitch assess SCGC's support record as 'Strong', as it has received direct tangible government support in the form of subsidies, tax rebates and direct asset injections, while Binhai's 'Moderate' assessment reflects the lower amount of support it has received. The one-notch uplift for Binhai versus a two-notch uplift for SCGC is due to the narrower difference between Binhai' SCP and Fitch's assessment of Tianjin's creditworthiness than that between SCGC and Shanghai. KEY ASSUMPTIONS Fitch's Key Assumptions Within Fitch Rating Case for the Issuer: -- Gas sales volume to rise by 15%-16% in 2023-2024 then decline to 8%-10% in 2025-2026 -- Gas sales dollar margin to recover to HKD0.47/cbm in 2023, then gradually improve to HKD0.49/cbm in 2024-2026 -- New residential connection households to decline by 1% in 2023, then stabilise from 2024 -- Gas transmission volume to rise by 11% in 2023 and 20% in 2024 on a gradual recovery of gas-fired power plant utilisation. Volume to rise by a further 13% in 2025 on supply to new power plants -- Cash capex at HKD600 million-800 million in 2023 to 2026 -- Dividend pay-out ratio remaining at 2023 level RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- EBITDA net leverage sustained below 3.7x -- Higher likelihood of support from Tianjin municipality Factors that could, individually or collectively, lead to negative rating action/downgrade: -- EBITDA net leverage at above 5.7x for a sustained period -- Lower likelihood of support from Tianjin municipality LIQUIDITY AND DEBT STRUCTURE Satisfactory Liquidity: Binhai had short-term debt of HKD1.6 billion at end-2022, of which HKD679 million came from Sinopec's finance company. Binhai also had readily available cash of HKD1.0 billion, including cash pledged for bank loans. Fitch expect working capital loans to be rolled over, given the company's record and solid operating performance. Loan from Sinopec's finance company should also be easily renewed due to the strategic relationship. Amortisation of project and syndicate loans is likely to be covered by cash generated at the project company level. ISSUER PROFILE Binhai is a regional city gas distributor. It is 40.00% owned by Tianjin municipality through TEDA and 29.99% owned by Sinopec's gas subsidiary, Sinopec Great Wall Gas Investment Co., Ltd. PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS Binhai's IDR incorporates one notch of support from the Tianjin municipal government. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. ========= I N D I A ========= ACTION INDUSTRIAL: ICRA Keeps B+ Debt Ratings in Not Cooperating ---------------------------------------------------------------- ICRA has retained the Long-Term and Short-Term ratings of Action Industrial Corporation 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- 6.00 [ICRA]B+ (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Cash Credit to remain under 'Issuer Not Cooperating' category Long Term- 0.85 [ICRA]B+ (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Term Loan to remain under 'Issuer Not Cooperating' category Short Term- 2.50 [ICRA]A4 ISSUER NOT Non Fund Based COOPERATING; Rating continues Others to remain under 'Issuer Not Cooperating' category Short Term- 0.43 [ICRA]A4 ISSUER NOT Unallocated COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Established in 2005, AIC is a proprietorship firm promoted by Mr. Raj Kumar Gupta. The firm is a part of the Action Group and comes under the faction of Mr. Raj Kumar Gupta. The firm is involved in the manufacturing of shoes, kid's footwear, sandals etc. Its manufacturing facilities are located at Baddi, Himachal Pradesh and Bahadurgarh, Haryana. CIPL deals with customers such as Reliance Industries Limited (RIL), Indian Oil Corporation Limited, Haldiya Petrochemicals Limited, HPCLMittal Energy Limited (HMEL) - joint venture between Hindustan Petroleum Corporation Limited (HPCL) and Mittal Energy Investment Pvt Ltd, Singapore, etc. ARUPPUKOTTAI SHRI: ICRA Keeps B Debt Ratings in Not Cooperating --------------------------------------------------------------- ICRA has retained the Long-Term and Short-Term ratings of Aruppukottai Shri Ramalinga Spinners 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- 23.00 [ICRA]B (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Cash Credit to remain under 'Issuer Not Cooperating' category Long Term- 3.02 [ICRA]B (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Term Loan to remain under 'Issuer Not Cooperating' category Long Term- 2.70 [ICRA]B (Stable) ISSUER NOT Unallocated COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Short Term- 15.00 [ICRA]A4 ISSUER NOT Fund Based- COOPERATING; Rating continues Cash Credit to remain under 'Issuer Not Cooperating' category Short Term- 1.09 [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. Aruppukottai Shri Ramalinga Spinners Private Limited ("RSPL"), was incorporated as a private limited company in June 1999 with an object of establishing spinning and textile mills. The Company commenced its production in November 2003 and operates as a cotton spinning unit in Aruppukottai, Tamil Nadu with an installed capacity of 68,016 spindles with capacities getting added on a periodic basis. The Company manufactures 100% grey cotton yarn ranging from 21s counts to 110s counts. The company is a part of Ramalinga Group of Companies based out of ruppukottai, Tamil Nadu. The major companies in the Ramalinga group include (a) Shri Ramalinga Mills Limited (SRML) (ii) Aruppukottai Shri Ramalinga Spinners Private Limited and (iii) Tamilnadu Jaibharath Mills Limited. (iv) Sree Jeyasoundharam Textile Mills Private Limited. ASHIANA LANDCRAFT: ICRA Keeps D Debt Rating in Not Cooperating -------------------------------------------------------------- ICRA has retained the Non-Convertible Debentures of Ashiana Landcraft Realty Private Limited in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Non-convertible 79.95 [ICRA]D; ISSUER NOT COOPERATING; Debentures 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 2012, ALRPL is a joint development between Ashiana Homes Pvt Ltd (AHPL) and Landcraft Projects Private Limited (LPPL) formed solely for a premium real estate residential project development named 'The Center Court' located at Sector 88A, Gurgaon with a saleable area of 1.72 msf (million square feet). LPPL was incorporated in 2007 and is the real estate vertical of Garg group with the presence in Ghaziabad. AVADH COTTON: ICRA Keeps B Debt Ratings in Not Cooperating ---------------------------------------------------------- ICRA has retained the Long-term ratings of Avadh Cotton Industries - Jamnagar in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]B (Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 1.43 [ICRA]B (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Term Loan to remain under 'Issuer Not Cooperating' category Long Term- 4.50 [ICRA]B (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Cash Credit to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Avadh Cotton Industries - Jamnagar (ACI) was established as partnership firm in January 2014. It engaged in the business of ginning and pressing of raw cotton. Three partner namely Mr. Shaileshbhai Chikani, Mr. Rashikbhai Vaishnav and Mr. Rohitbhai Sitapara. In FY 2016, Mr. Vallabhabhai Jivani has resigned from the partnership firm as partner. BALAJI ACQUA: CARE Keeps B- Debt Rating in Not Cooperating ---------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Balaji Acqua & Agro Products Private Limited (BAAPPL) 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 21, 2022, placed the rating(s) of BAAPPL under the 'issuer non-cooperating' category as BAAPPL 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. BAAPPL 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). Andhra Pradesh based, Balaji Aqua & Agro Products Private Limited (BAAPPL) was established in 1990 as a Private Limited Company by Mr. Gadde Rama Mohan and his relatives. Initially the company has established as a manufacturer of shrimps. In 2013 the company has taken quarry on lease from Andhra Pradesh government and excavates boulders from rocks for the manufacturing of “Quartz Mining Stone” of various sizes 10mm, 20mm and 40mm for 20 years for which the company is liable to pay INR0.07 crore to the government annually. Apart from mining the co mpany is also engaged in manufacturing of shrimp hatcheries. The company earns 30 percent of revenue from quartz mining and the balance of 70 per cent from hatcheries business. BALSARA ENGINEERING: Liquidation Process Case Summary ----------------------------------------------------- Debtor: Balsara Engineering Products Limited SF-273, Kavaraipettai-Sathyavedu Road, Thanipoondi Post, Gummidipoondi Taluk, Tieuvallur, Tamilnadu-601202 Liquidation Commencement Date: June 28, 2023 Court: National Company Law Tribunal Special Bench-I Liquidator: Mr. V.M. Gurusamy No.5/159, West Street, Vaiyakondanpatty, Thiruvengadam Post & Taluk, Tenkasi District, Tamilnadu-627719 Email: vmgurusamy2702@gmail.com Last date for submission of claims: July 27, 2023 BIMLA RICE: CARE Keeps B- Debt Rating in Not Cooperating Category ----------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Bimla Rice International (BRI) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 11.12 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 7, 2022, placed the rating(s) of BRI under the 'issuer non-cooperating' category as BRI 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. BRI continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 23, 2023, June 2, 2023, June 12, 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). Kaithal-based (Haryana) BRI was established as a partnership firm in 1998 and is currently being managed by Mr. Sushil Kumar, Mr Natish Gupta and Mr. Sahil Gupta. The firm is engaged in milling, processing and trading of basmati and non-basmati rice. The processing unit of the firm is located in Kaithal, Jind, Haryana. BYJU'S: Creditors Agree to Amend $1.2 Billion Loan Terms -------------------------------------------------------- Reshmi Basu at Bloomberg News reports that a group of lenders to Byju's will work with the Indian education-technology startup to change the terms of a $1.2 billion loan after the company fell into distress. A steering committee of creditors - who together own more than 85% of the term loan - and Byju's have agreed to work toward a "signed and completed" amendment before Aug. 3, the lenders said in a statement July 24, confirming a Bloomberg News story. "Successful execution of the amendment would immediately solve for the loan's acceleration and end all open litigation while avoiding further enforcement actions," according to the statement. A favorable agreement will be good news for the company, which was once India's most valuable startup, but has faced a series of crises in recent months, Bloomberg says. The company's auditors quit, India's anti-money laundering officials searched its offices, and it skipped an interest payment on its term loan. According to Bloomberg, troubles have been mounting for Byju's business, which boomed during the pandemic, with its flagship app topping 100 million users. The demand for online tutoring, however, dropped with schools reopening. Moreover, the startup spent heavily on marketing, such as sponsorship of India's national cricket team and the FIFA World Cup, dragging finances. There is no earnings statement for Byju's for the financial year to March, 2022 in the public domain. The most recent available shows expenditure more than doubled in the year to March 31, 2021, while revenue fell, Bloomberg states. Just last month, Deloitte Haskins & Sells resigned as auditors to Byju's, citing a delay in submitting financial statements, recalls Bloomberg. That led the government to order an inspection of its finances. In that same month, Byju's said it "elected" to halt making any payments on the $1.2 billion term loan and skipped a $40 million interest payment due that day. It also filed a lawsuit in New York, alleging a group of investors manufactured a fake debt crisis to extort money from it. The lenders' group has called the lawsuit meritless. The Economic Times reported earlier on the matter regarding changing loan terms, Bloomberg notes. Houlihan Lokey serves as financial advisor to the term loan lender group and Kirkland & Ellis LLP, Cahill Gordon & Reindel LLP, and Shearman & Sterling LLP are legal advisors. Based in Bengaluru, Karnataka, India, Byju's operates an online learning platform intended to deliver engaging and accessible education. The company's platform makes use of original content, watch-and-learn videos, animations, and interactive simulations that make learning contextual, visual, and practical, enabling students to receive a personalized educational experience. CALL EXPRESS: ICRA Lowers Rating on INR50cr Term Loan to D ---------------------------------------------------------- ICRA has downgraded the ratings on certain bank facilities of Call Express Construction (India) Private Limited (Call Express), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 50.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating downgraded from Term Loan [ICRA]B+ (Stable) and continues to remain under 'Issuer Not Cooperating' category Long Term/ 10.00 [ICRA]D/[ICRA]D; ISSUER NOT Short Term- COOPERATING; Rating downgraded Unallocated from [ICRA]B+ (Stable)/[ICRA]A4 and continues to remain under 'Issuer Not Cooperating' Category Rationale Material event There is public announcement by Insolvency and Bankruptcy Board of India (IBBI) on July 8, 2023. The India Cements Limited has made an application in IBBI against Call Express Construction India Private Limited. The IBBI has mentioned January 2, 2024 as the estimated date closure of insolvency resolution process. Impact of material event The amount and nature of claim made by THE INDIA CEMENTS LIMITED is uncertain. The rating is based on limited information on the entity's performance since the time it was last rated in April 2023. 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. Incorporated in 2006, Call Express Construction (India) Private Limited (Call Express) is a Chennai based real estate company involved in the development of residential and commercial projects. The focus of the company has been primarily on project planning and land acquisition. The company completed its first residential project – Euphoria in 2011. Its second residential project – Ushera, categorized under ultra luxury segment is in the early stages of construction is expected to be completed by March 2019. CENTURY SHELTORS: Ind-Ra Affirms D LongTerm Issuer Rating --------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Century Sheltors Developers Pvt Ltd.'s (CSDPL) Long-Term Issuer Rating at 'IND D'. The instrument-wise rating actions are: -- INR1.50 bil. Non-convertible debentures (NCDs; long-term)* affirmed with IND D rating; and -- INR250 mil. NCDs (long-term)* assigned with IND D rating. *Yet to be issued Key Rating Drivers Liquidity Indicator - Poor: The ratings reflect CSDPL's ongoing delay in debt servicing since December 2022 on account of its poor liquidity position. CSDPL had previously obtained a funding of INR2,550 million through NCDs from Asia Pragati (strategic investor). The NCDs had a scheduled repayment in December 2022, March 2023 and June 2023 which have not been repaid till date. The company has one ongoing residential project, Century Ethos, in Bangalore, India. CSDPL is planning to enhance the NCD limit (rated by Ind-Ra) amounting INR1,500 million by INR250 million. Thus, the NCDs amounting INR1,500 million allotted in May 2023 will be replaced by fresh NCDs amounting INR1,750 million. The money raised from the NCDs will be provided to another group company, Century Silicon City, through intercorporate deposits. CSDPL will use this funding for re-financing the existing loan in Century Silicon City. Rating Sensitivities Positive: Timely debt servicing for at least three consecutive months will be positive for the ratings. Company Profile Incorporated in 2007, CSDPL is engaged in buying, selling, renting and operating of self-owned or leased real estate such as apartment building and dwellings, non-residential buildings, and developing and subdividing real estate into lots. CHHATRAPATI SAHAKARI: Ind-Ra Gives D Term Loan Rating ----------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Chhatrapati Sahakari Sakhar Karkhana Limited's (CSSKL) bank facilities 'IND D'. The detailed ratings are: -- INR822.40 mil. Fund-based working capital limit (long-term/ short-term) assigned with IND D rating; and -- INR40.625 mil. Term loan (long-term) due on FY26 assigned IND D rating. Key Rating Drivers The rating reflects CSSKL's ongoing delays in servicing of its debt obligations of its term loan on account of its poor liquidity position. The term loan was disbursed during 2009 to 2011 for setting up a sugar factory. However, the commissioning of the factory was delayed till 2014. Furthermore, CSSKL faced less cane production and continuous losses, leading to the company not repaying its debt on time. Liquidity Indicator-Poor: CSSKL's average maximum utilization of the fund-based limits was 44% during the 12 months ended May 2023. The cash flow from operations stood negative at INR278.77 million in FY23 (FY22: INR684.55 million; FY20: INR30.09 million) due to unfavorable changes in its working capital. Furthermore, free cash flow stood negative at INR424.77 million in FY23 (FY22: INR593.31 million; FY21: negative INR1.10 million) due to the company incurring a capex of INR150.04 million. The net working capital increased to 159 days in FY23 (FY22: 33; 253 days), due to an increase in inventory days to 250 days (136; 410). The cash and cash equivalent stood at INR19.63 million in FYE23 (FYE22: INR30.12 million; FY21: INR7.27 million). CSSKL defaulted on its repayment of its term loan, which had an outstanding balance of INR262.90 million and accrued interest of INR217.96 million as on March 31, 2023. Furthermore, CSSKL does not have any capital market exposure and relies on banks and financial institutions and related parties to meet its funding requirements. Rating Sensitivities Positive: Timely debt servicing for at least three consecutive months will be positive for the ratings. Company Profile CSSKL is a co-operative sugar factory located in Sawargaon, Majalgaon, in Beed (Maharashtra). It has an installed sugar crushing capacity of 1,250 tons of cane per day. CLASSIC ENGICON: Ind-Ra Affirms BB+ LongTerm Issuer Rating ---------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Classic Engicon Private Limited's (CEPL) Long-Term Issuer Rating at 'IND BB+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR90 mil. Fund-based working capital limit affirmed with IND BB+/Stable/IND A4+ rating; and -- INR370 mil. Non-fund-based working capital limit affirmed with IND A4+ rating. Key Rating Drivers The affirmation reflects SRPL's continued small scale of operations as indicated by revenue of INR1291.37 million in FY23 (FY22: INR677.33 million; FY21: INR859.33 million). The revenue increased by a significant 90.66% yoy in FY23 as the company realized INR 316.27 million during the year for orders that had been completed in FY22. CEPL had an order book of INR3,775 million at end-May 2023, of which INR1,500 million is to executed in FY24. In FY24, the management expects the revenue to improve on a yoy basis, backed by the order book and the company's participation in fresh tenders. FY23 numbers are provisional in nature. The ratings are constrained by the company's sustained inability to pass on any rise in input costs to its customers, which impacts its EBTIDA margins. In FY23, the EBITDA margin was healthy but declined to 12.77% (FY22: 16.68%), due to an increase in raw material prices. The ROCE was 17.3% in FY23 (FY22: 10.9%). The management expects EBITDA margin to improve from FY24 as the company plans to start procuring inputs (stone) from its sister concern, Elite Power Projects and Constructions Pvt Ltd, at lower rates. Liquidity Indicator – Stretched: CEPL's average maximum utilization of its fund-based limits was 84.29% and that of the non-fund-based limits was 77.04% during the 12 months ended April 2023. The cash flow from operations deteriorated to negative INR27.40 million in FY23 (FY22: INR20.32 million) on account of unfavorable changes in the working capital. The free cash flow turned negative at INR27.39 million (FY22: INR4.19 million) owing to the deterioration in the cash flow from operations. The working capital cycle improved to a negative 44 days in FY23 (FY22: 37 days) due to a decrease in the inventory holding period to 41 days (215 days). The cash and cash equivalents stood at INR78.70 million at FY23 (FYE22: INR40.82 million), against debt repayment obligations of around INR23.3 million and INR0.4 million in FY24 and FY25, respectively. The company has also enhanced its fund-based facility by INR10 million and non-fund-based facility by INR50 million, which is yet to be disbursed by the banks. CEPL does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. The ratings are also constrained by CEPL's high geographical concentration as it mainly executes projects in Jharkhand and Bihar. Also, the order book concentration is high, with around 53.58% of the unexecuted order book being from the road construction department of Bihar and the remaining from the road construction department of Jharkhand. The ratings reflect the comfortable credit metrics. The metrics improved in FY23 owing to an increase in the absolute EBITDA to INR164.96 million (FY22: INR112.99 million; FY21: INR145.1 million). The interest coverage (operating EBITDA/gross interest expense) was 12.02x in FY23 (FY22: 7.88x, FY21: 9.39x) and the net leverage (adjusted net debt/operating EBITDA) was 0.47x (0.50x, 0.42x). Ind-Ra expects the credit metrics to remain strong in FY24, due to scheduled repayment of long-term borrowings and the absence of any debt-led capex plans. The ratings also benefit from CEPL's promoter's experience of over a decade in the construction of roads bridges and other construction projects in Jharkhand. Rating Sensitivities Negative: A decline in the revenue and EBITDA or deterioration in the liquidity position will lead to a negative rating action. Positive: An improvement in the revenue and the liquidity profile, along with maintaining the credit metrics, all on a sustained basis, will lead to a positive rating action. Company Profile CEPL was established in Jharkhand in October 2007. The company, promoted by Dilip Kumar Singh, undertakes construction of roads, bridges, check dams, irrigation and other such projects. However, it specializes in road construction. Its key customer is the Public Works Department of Jharkhand and Bihar. CLASSIC MICROTECH: ICRA Keeps B Debt Rating in Not Cooperating -------------------------------------------------------------- ICRA has retained the Long-term and Short-Term ratings of Classic Microtech 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- 10.00 [ICRA]B (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Cash Credit to remain under 'Issuer Not Cooperating' category Short Term- 5.00 [ICRA]A4 ISSUER NOT Non Fund Based COOPERATING; Rating continues Others to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Classic Microtech Pvt. Ltd. (CMPL), incorporated in 2000, is engaged in the business of manufacturing zirconium silicatea mineral used as an input during manufacturing of ceramic glaze frits for tiles, sanitary ware etc. CMPL has an installed capacity to manufacture ~4200 Metric Tonnes Per Annum (MTPA) of zirconium silicate at its manufacturing facility located in Pratij, Gujarat. CMPL is a closely held entity with the members of the Patel family being the key stakeholders. DAGAR FARM: CARE Keeps D Debt Rating in Not Cooperating Category ---------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Dagar Farm (DF) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 5.29 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 July 4, 2022, placed the rating(s) of DF under the 'issuer non-cooperating' category as DF 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. DF 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). Haryana-based Dagar Farm (DF) was established in 2015 as a proprietorship concern by Mr. Sandeep Dagar. DF is engaged in poultry farming business. The processing facility of the firm is located at Jhajjar, Haryana. DEVI IRON: ICRA Keeps B+ Debt Ratings in Not Cooperating Category ----------------------------------------------------------------- ICRA has retained the Long term and Short-term ratings of Devi Iron & Power Pvt. Ltd. in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]B+(Stable)/[ICRA]A4; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Short Term- 17.50 [ICRA]A4 ISSUER NOT Non Fund Based COOPERATING; Rating continues Others to remain under 'Issuer Not Cooperating' category Long Term- 14.50 [ICRA]B+ (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Cash Credit to remain under 'Issuer Not Cooperating' category Long Term- 15.00 [ICRA]B+ (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Term Loan to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Devi Iron & Power Pvt. Ltd. (DIPPL) was incorporated in 2004. The plant is located at Tanda Village in Raipur (Chhattisgarh). DIPPL has a production facility for sponge iron with an annual production capacity of 90,000 MT. The company also has a Waste Heat Recovery Boiler (WHRB) based power plant with a power generation capacity of 8 MW. Since April 2016, the company has started the production of Mild Steel (MS) ingot. DHARAMCHAND PARASCHAND: ICRA Keeps D Ratings in Not Cooperating --------------------------------------------------------------- ICRA has retained the Short-Term rating of Dharamchand Paraschand Exports in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Short-term– 58.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category Short Term- 8.00 [ICRA]D; ISSUER NOT COOPERATING; Unallocated Rating Continues to remain under 'Issuer Not Cooperating' Category Short Term- (58.00) [ICRA]D; ISSUER NOT COOPERATING; Interchangeable Rating Continues to remain under 'Issuer Not Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Established in 1974, Dharamchand is involved in the business of trading, manufacturing and exporting cut and polished diamonds (CPD). The firm currently operates from Bharat Diamond Bourse in Bandra Kurla Complex and has a processing facility in Surat, Gujarat. DHIRAJ FOUNDATION: ICRA Keeps B- Debt Ratings in Not Cooperating ---------------------------------------------------------------- ICRA has retained the Long-Term rating of Dhiraj Foundation in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]B- (Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 20.63 [ICRA]B- (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Term Loan to remain under 'Issuer Not Cooperating' category Long Term- 0.13 [ICRA]B- (Stable) ISSUER NOT Unallocated COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Dhiraj Foundation registered in December 2010 is promoted by Mr. A. Dhirajlal Gandhi. DF commenced operations in July 2011 with 'Dhirajlal Gandhi College of Technology' (DGCT) at Salem, Tamil Nadu. The college offers five UnderGraduate (UG) courses and four Post-graduate (PG) courses. The college is approved by the AICTE (All India Technical Council for Technical Education) and is affiliated to Anna University, Tamil Nadu. DHURIA RICE: ICRA Keeps B Debt Rating in Not Cooperating Category ----------------------------------------------------------------- ICRA has retained the Long term of Dhuria Rice Mills in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]B (Stable); 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 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. DRM was established in the year 1978 as a partnership firm with Ashok Kumar, Krishna Devi and Surinder Kumar as partners. In the year 2007 partnership was re constituted with Mr. Arun Kumar, Mr. Ashok Kumar and Krishna Devi as partners. In 2012 the partnership firm was reconstituted again with Mr. Ashok Kumar and Mr. Arun Kumar as partners in equal ratios. All the partners are actively engaged in the management of the company. DRM is engaged in processing and trading of non-basmati rice in the domestic markets and to exporters in India. Head office as well as the manufacturing plant of the company is located at Fazilka, Punjab. The plant has a milling capacity of 2 tonnes per hour of paddy. FINE WOOD: Ind-Ra Keeps BB+ LT Issuer Rating in Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Fine Wood Products Private Limited's 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: -- INR50 mil. Fund-based facilities* maintained in non- cooperating category and withdrawn; and -- INR250 mil. Non-fund-based facilities# maintained in non- cooperating category and withdrawn. Note: ISSUER NOT COOPERATING: The issuer did not co-operate, based on the best available information. *Maintained at 'IND BB+ (ISSUER NOT COOPERATING)' before being withdrawn #Maintained at 'IND A4+ (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 financials, sanctioned bank facilities and utilization, business plans 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 Fine Wood Products, founded and managed by the Garg family, manufactures plywood and markets its products under the brand Fine Ply. GALAXY CONCAB: CARE Lowers Rating on INR8.13cr LT Loan to C ----------------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of Galaxy Concab India Private Limited (GCIPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 8.13 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category and Revised from CARE B-; Stable Short Term Bank 21.00 CARE A4; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated July 4, 2022, placed the rating(s) of GCIPL under the 'issuer non-cooperating' category as GCIPL 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. GCIPL 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). The ratings have been revised on account of non-availability of requisite information. The rating revision also considers the small scale of operations and continued losses for the past two years ended March 31, 2022. Jaipur (Rajasthan)-based Galaxy Concab (India) Pvt. Ltd. (GCIPL) was incorporated in 2006 by Mr. Vinay Gupta and Mr. Rajesh Gadia. GCIPL is engaged in manufacturing of Low-tension (LT) power cables mainly Low-tension Cross-Linked Polyethylene (LT XLPE) and Low-Tension Polyvinyl Chloride (LT PVC) cables, Aerial Bunched cables and conductors as well as PCC poles. Manufacturing facilities for cables and conductors are located in Jaipur whereas manufac turing facilities for PCC poles are located in Ajeetgarh (Sikar). GVG KRAFT: Ind-Ra Keeps BB+ LT Issuer Rating in Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained GVG Kraft Private Limited's Long-Term Issuer Rating of IND BB+ (ISSUER NOT COOPERATING) in the non-cooperative category and has simultaneously withdrawn it. The instrument-wise rating actions are: -- INR60 mil. Fund-based working capital limit* maintained in non-cooperating category and withdrawn; and -- INR9 mil. Term loan^ due on June 2024 maintained in non- cooperating category and withdrawn. Note: ISSUER NOT COOPERATING: The issuer did not co-operate, based on the best available information. *Maintained at IND BB+ (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) before being withdrawn. ^Maintained at IND BB+ (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 the next three years, information on corporate governance, and management certificate. Ind-Ra is no longer required to maintain the rating, as the agency has received a no-objection certificate from the lenders. This is consistent with Ind-Ra's Policy on Withdrawal of Ratings. Ind-Ra will no longer provide analytical and rating coverage for the company. Company Profile Incorporated in 2015, GVG Kraft manufactures packing kraft with a total capacity of 1,800 tons per month. The packing kraft can be used to manufacture kraft boxes, paper bags and thick bags. Historically, the company has been utilizing around 75% of its total capacity. The company, which has its registered office in Udumalpet, has a manufacturing unit near Udumalpet. GVR ASHOKA: Ind-Ra Cuts LongTerm Issuer Rating to D --------------------------------------------------- India Ratings and Research (Ind-Ra) has taken the following rating actions on GVR Ashoka Chennai ORR Limited's (GACOL) debt instruments: -- INR5,958.9* bil. Term loan (Long-term) due on September 30, 2029 downgraded with IND D rating; and -- INR8.830 bil. Proposed term loan^ affirmed with Provisional IND A+/Stable rating. *outstanding as of December 21, 2022 ^The rating on the proposed term loan is provisional and pending execution of documents as detailed in Annexure I. The final rating, upon the receipt of the executed documents consistent with the terms from the sanction letter from the lender, shall be assigned within 90 days from the date of issuance of the instrument. The provisional rating may be extended by another 90 days, subject to Ind-Ra's policy, if the execution of the documents is pending. The rating of the proposed term debt is based on the proposed debt structure including covenants, delineated documentation. In the absence of the documentation considered while assigning the provisional rating, the agency would not have assigned any rating to the proposed instruments. Ind-Ra continues to arrive at GACOL's ratings on a standalone basis, considering the rated debt only. Based on the financing agreements, any sponsor-injected funds, other than plain-vanilla equity (including unsecured loans), in the project have been considered subordinate and equity-like instruments, and therefore, have not been considered as additional debt in Ind-Ra's analysis. Any deviation in the treatment of these instruments would impact the ratings. In April 2022, National Investment and Infrastructure Fund Limited (NIIFL) signed a share purchase agreement with Ashoka Buildcon Limited for acquiring 100% stake of GACOL. The asset acquisition is yet to be completed owing to a delay in receipt of approval from the authority for the share transfer; NIIFL expects to receive the same by end-July 2023.The existing term loan will be refinanced with the rated proposed term loan on completion of the acquisition. The downgrade reflects a delay in servicing of the term loan, which was due on June 30, 2023, owing to a delay in receipt of annuity. The rating of the proposed term loan draws strength from the favorable debt structure in the form of a longer loan tenor at a lower interest rate compared to the existing term loan, leading to a comfortable debt service coverage ratio (DSCR) throughout the tenor of the proposed term loan and the proposed acquisition of 100% stake by a strong sponsor, National Investment and Infrastructure Fund (NIIF Master Fund). The debt structure also provides for an adequate cushion of five months between the receipt of annuity and principal prepayment. Furthermore, it features a debt service reserve (DSR) equivalent to six months of debt servicing and an additional reserve equivalent to three months of interest, and operations and maintenance (O&M) expenses. The rating also factors in the past deductions and delays in the receipt of annuity from the Highways and Minor Ports Development, the government of Tamil Nadu; however, the risk of delay and deductions is mitigated to an extent by the fact that the last four annuities (ninth, 10th,11th and 12th annuities) were received in full with a delay of around two months, down from an average delay of four months seen earlier. Key Rating Drivers Delay in Debt Servicing of Exiting Term Loan: The project had a cushion to absorb two months of delay in receipt of annuity in the existing debt structure, however, the 12th annuity was released on July 12, 2023, beyond 60 days, resulting in the delay in debt servicing. While the delay is beyond 60 days, it is not significantly delayed from the recent track record of two months and was on account of administrative reasons due to the recent change in applicability of Goods and Service Tax on annuity projects. GACOL made payments to the lenders on July 13, 2023 subsequent to the receipt of annuity. Liquidity Indicator for Existing Term Loan – Poor: As per Ind-Ra's base case, the existing term loan has a debt service coverage ratio (DSCR) of less than 1.0x for FY24-FY25, due to higher repayment obligations in the loan structure as well as historical delays in receipt of annuities. The project received its 12th annuity, although without any performance-related deductions, with a delay of 76 days leading to the delay in debt servicing. The rating of the existing term loan continues to factor in the project's poor liquidity due to the absence of a DSR and/or liquidity in the project to meet the obligations if the annuity is delayed beyond two months as well as a weak sponsor profile. The O&M contract is not a fixed-price contract; hence, any significant increase in the O&M costs and earlier-than-expected need for incurring major maintenance expenditure will further affect the project's liquidity. Significant Improvement in Structure of Proposed Loan: Ind-Ra has reviewed the draft terms from the sanction letter for analyzing the debt structure of INR8,830 million proposed term loan post the completion of acquisition by NIIFL. The proposed term debt shall be utilized towards refinancing the existing term loan, and a top-up debt of INR2,500 million would be utilized for creating an initial DSR, a major maintenance reserve, liquidity reserves and vendor payments outstanding to Ashoka Buildcon. The proposed term loan has a comfortable debt structure with a long tenor, with repayments starting from March 31, 2023 and ending on March 31, 2033, with a tail period of two years (four annuities). The start of the repayment is likely to be aligned while maintaining the cushion between annuity and principal repayment, and the debt is likely to reduce to the extent of repayment made on the existing loan so far from the date of sanction. The repayment would take place in the form of structured unequal bi-annual instalments in March and September each year, providing a cushion of five months between the annuity due date and principal repayment. The debt term also features a DSR equivalent to six months of interest and one month of principal repayment obligations, an additional liquidity reserve equivalent to three months' interest, and O&M expense and major maintenance reserve. The structure also includes a standard waterfall mechanism and a semi-annual testing of meeting DSCR of 1.25x for dividend payouts. On the contrary, the existing term loan of INR5,958.9 million features a fully amortizing repayment tenor ending in FY30, with higher repayments until FY25, thus impacting the DSCR. Quarterly principal due dates are scheduled two months post the annuity due date. The financing agreement also includes a DSR equivalent to three months of debt servicing (not maintained till date), a standard waterfall mechanism, restricted payment conditions and a minimum DSCR of 1.05x. Liquidity Indicator for Proposed Term Loan - Adequate: Post the refinancing, Ind-Ra believes the cash flows of the project shall ensure a minimum adequate average DSCR of 1.60x to meet the debt obligations, considering the substantial increase in the loan tenor and a reduction in the interest rate despite the top-up loan being availed. Furthermore, the company will maintain a DSRA for two quarters in line with the proposed stipulation. An additional reserve equivalent to three months' interest and O&M expense will be created upfront. Post the receipt of each annuity, restricted cash equivalent to next six months' interest and O&M expense will be maintained in the special purpose vehicle until the receipt of the next annuity. New Sponsor Profile with 100% Ownership: Post the acquisition, GACOL will be part of the NIIF Master Fund's portfolio. NIIF Master Fund is managed by its investment manager, NIIFL, an infrastructure-focused quasi sovereign wealth fund manager. It manages over USD4.4 billion of equity capital commitments across three funds, including the NIIF Master Fund. With a total corpus of USD2.34 billion, the NIIF Master Fund is backed by the government of India (contributing 49%) and marquee international and domestic investors such as Abu Dhabi Investment Authority, Temasek, Ontario Teachers' Pension Plan, Australian Super, Canada Pension Plan Investment Board, Public Sector Pension Investment Board, Development Finance Corporation, ICICI Bank Limited, HDFC Group, Axis Bank Limited ('IND AAA'/Stable/'IND A1+') and Kotak Life Insurance Company Limited. The NIIF Master Fund primarily focuses on core infrastructure sectors and has made investments across roads, ports and logistics, renewables and smart metering space. Under the NIIF Master Fund, NIIFL has incubated its proprietary roads platform, Athaang Infrastructure Private Limited to operate and manage road assets. The road portfolio comprises of four road assets, with two toll projects and two National Highways Authority of India ('IND AAA'/Stable)-backed annuity projects. Low Revenue Risk: The rating reflects GACOL's limited revenue risks, given the fixed availability-based annuity payments from a government-owned counterparty, Department of Highways and Minor Ports Development. Each semi-annual payment is sized at INR1,200 million, commencing six months from the provisional commercial operations date (PCOD) up to the end of the concession period. The annuity payments are fixed with no inflation adjustments and are subject to deductions for non-conformance to maintenance requirements and depressed lane availability during the concession term. Any significant deduction due to the non-maintenance of lane availability will be a key rating sensitivity. The project achieved PCOD on April 23, 2017 and final commercial operations date on October 29, 2022. The project had received 12 annuities as of July 2023 with a maximum delay of 148 days. The cushion of five months between the annuity due date and the proposed term loan's scheduled principal repayment, and stipulated reserves in the new debt offer sufficient debt servicing protection. Moderate O&M Risk: Maintaining the project as per the requirements of the concession agreement will ensure receipt of annuity without any performance-related deductions. NIIFL proposes to appoint an O&M contractor post the acquisition. Ind-Ra derives comfort from the satisfactory O&M work across NIIF's road portfolio, as seen in Athaang Devanahalli Tollways Private Limited (debt rated at 'IND AA-'/Stable), Athaang Dichpally Tollways Private Limited ('IND AAA'/Stable), SP Jammu and Quazigunj. Furthermore, the adequate O&M and major maintenance cost assumption factored in Ind-Ra's base case provide comfort. Maintenance of the project stretch as per the required standards will be a key rating monitorable. Historical Delays in Annuity Payments - a Rating Constraint: There have been historical delays in annuity payments from Highways and Minor Ports Development, the government of Tamil Nadu, which are made through Tamil Nadu Road Development Company Limited ('IND BBB+'/Stable). While the delays between annuity due date and receipt date have reduced to about two months for the last four annuities from four months, the counterparty risk profile continues to be a rating constraint. The roles and responsibilities of Tamil Nadu Road Development Company defined in the concession agreement is broadly as a supervising entity on behalf of the authority, without any financial responsibility (including annuity payments) towards the project. Rating Sensitivities Existing Term Loan: Positive: Timely debt servicing for three consecutive months will result in an upgrade. Proposed Term Loan: Positive: A sustained track record of receipt in annuity within a period of 30 days and/or improved credit profile of the counterparty could lead to a positive rating action. Negative: The following developments, individually or collectively, could lead to a negative rating action: - a sustained delay in receipt of annuities beyond four months, - a significant performance-related deduction in annuity, - deterioration in the credit profile of the counterparty, - a dip into the DSR or non-maintenance of other reserves as stipulated in the financing documents. Company Profile GACOL is a special purpose vehicle incorporated by GVR Infra Projects and Ashoka Buildcon to develop and operate a six-lane road project- Chennai Outer Ring Road Phase II- in Chennai, Tamil Nadu. It has a 20-year concession, which expires in March 2034, from the Highways and Minor Ports Development and the government of Tamil Nadu to implement the project under the build-operate-transfer annuity model. INDIAN INFRADEVELOPERS: CARE Keeps B- Rating in Not Cooperating --------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Indian Infradevelopers (IID) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.00 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated July 6, 2022, placed the rating(s) of IID under the 'issuer non-cooperating' category as IID 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. IID 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). Established in January 2013, Surendranagar-based (Gujarat) IID is a partnership firm run by four partners having equal profit and loss sharing proportion in the firm. IID is engaged into the business of construction, repair & maintenance of roads. IID is registered as 'AA' class approved contractor by Government of Gujarat and works generally on road construction, repair and maintenance contract of roads for Government of Gujarat. J M CONSTRUCTIONS: ICRA Moves B Debt Ratings to Not Cooperating --------------------------------------------------------------- ICRA has moved the ratings for the bank facilities of J M Constructions Company (JMCC) to the 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]B(Stable)/[ICRA]A4; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 5.00 [ICRA]B (Stable) ISSUER NOT Fund Based- COOPERATING; Rating Moved to Cash Credit the 'Issuer Not Cooperating' Category Short-term 0.50 [ICRA]A4 ISSUER NOT Non Fund based COOPERATING; Rating Moved to the 'Issuer Not Cooperating' category Long Term/ 9.00 [ICRA]B+ (Stable)/[ICRA]A4; Short Term- ISSUER NOT COOPERATING; Non Fund based- Rating moved to the 'Issuer BG Not Cooperating' category The rating is based on limited cooperation from the entity since the time it was last rated in October 2022. As a part of its process and in accordance with its rating agreement with JMCC, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite multiple requests by ICRA, the entity's management has remained noncooperative. In absence of requisite cooperation and in line with the aforesaid policy of ICRA, the rating has been moved to the "Issuer Not Cooperating" category. JMCC is a partnership firm founded in April 2009 by the Late Md. Junaid Ahmed and his family members. The firm is recognised as a Class-1 contractor by the Karnataka PWD in 1989 (under proprietorship) and undertakes civil works, which include construction of buildings, dwelling units, urban water supply works, and sewerage contracts primarily for Karnataka Slum Development Board, Karnataka Urban Water Supply and Drainage Board and Karnataka Housing Board. J PAN: ICRA Keeps B+ Debt Ratings in Not Cooperating Category ------------------------------------------------------------- ICRA has retained the Long term and short-term ratings of J Pan Tubular Components Private Limited 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- 15.00 [ICRA]B+ (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Cash Credit to remain under 'Issuer Not Cooperating' category Long Term- 6.80 [ICRA]B+ (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Term Loan to remain under 'Issuer Not Cooperating' category Short Term- 16.00 [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. Incorporated in 2007, J Pan Tubular Components Private Limited ('JPan') manufactures a wide variety of copper tubular components and assemblies like copper bends (U and C shape), copper couplings, copper tube header, copper tube components, copper connecting pipes and evaporating assembly which find application in air conditioners, refrigerators, heat exchangers etc. The company has five production facilities: two in Greater Noida, one each in Pune, Neemrana, and Bengaluru. The company's operations are managed by its director, Mr. Jignesh Panchal, who has more than 15 years of experience in the field. JABALPUR ENTERTAINMENT: ICRA Keeps B+ Ratings in Not Cooperating ---------------------------------------------------------------- ICRA has retained the Long-Term rating of Jabalpur Entertainment Complexes Private Limited in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]B+ (Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 6.85 [ICRA]B+ (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Term Loan to remain under 'Issuer Not Cooperating' category Long Term- 7.15 [ICRA]B+ (Stable) ISSUER NOT Unallocated COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. JECPL is promoted by Mr. Vishwa Mohan, who comes from the well-known family of Raja Gokuldas of Jabalpur. The family has contributed greatly to the development of the city of Jabalpur, the freedom movement, literature, legislatures and the Indian parliament. The family is influential and enjoys a good reputation in the state JECPL is managed by qualified professionals under a regular monthly monitoring by the board of directors. Board of directors comprises of Mr. Vishwa Mohan and Mr. Rajesh Maheshwari. Mr. Rajesh Maheshwari has extensive administrative and managerial experience and is President of Jabalpur Chamber of Commerce & Industries. He has also served as adviser to Perfect Refractories Ltd, Vallabh Refractories & Ceramic Product Ltd, and Narmada Ceramics Ltd, Jabalpur. Further, Mr. Rajesh Maheshwari has held several distinguished posts and has been awarded for his administrative and leadership qualities. The board of JECPL is also advised by experience professionals, sharing over 40 years of combined experience in project management and auditing. JAGABANDHU ENTERPRISERS: CARE Keeps D Ratings in Not Cooperating ---------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Jagabandhu Enterprisers Private Limited (JEPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 3.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 7.90 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 JEPL under the 'issuer non-cooperating' category as JEPL 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. JEPL 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). Jagabandhu Enterprisers Private Limited (JEPL) was incorporated in April 2000 by Mr. Jaga bandhu Muduli, Mrs. Anjali Bala Muduli and Mr. Sunil Prasad Muduli. Since its inception, the company has been engaged in trading of petrol, diesel and other related products through its sole petrol pump located at Mancheswar Industrial Estate, Bhubaneswar in Odisha. This apart, the company also engaged in supply, installation, erection, testing and commissioning of electrical equipment on a turnkey basis for various power transmission companies like Odisha Power transmission Corporation Ltd., Madhya Pradesh Power Transmission Company Limited, Bihar Pradesh Power Transmission Company Limited etc. JOSHODA OIL: CARE Keeps B Debt Rating in Not Cooperating Category ----------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Joshoda Oil Udyog Private Limited (JOUPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 9.41 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 22, 2022, placed the rating(s) of JOUPL under the 'issuer non-cooperating' category as JOUPL 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. JOUPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 8, 2023, May 18, 2023, May 28, 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). Joshoda Oil Udyog Private Limited (JOUPL) was incorporated in March, 2000 by Mr. Uttam Kumar Reja and Mr. Pronab Kumar Reja. The company is engaged in the manufacturing of edible oil (mainly rice bran oil and its by -product de-oiled cake from rice bran) with an installed capacity of 30,000 tonne per annum. The manufacturing unit of the company is located at Hooghly, West Bengal. The company is engaged in setting up a rice milling unit with a proposed installed capacity of 12,000 metric ton ne per annum (MTPA). Mr. Uttam Kumar Reja (aged 61 years), having around four decades of experience in the same line of industry, looks after the day to day operations of the company. He is supported by other director Mr. Pronab Kumar Reja (aged, 59 years) along with a team of experienced professionals. JP SORTEX: ICRA Keeps B+ Debt Ratings in Not Cooperating Category ----------------------------------------------------------------- ICRA has retained the Long term and short-term ratings of JP Sortex Private Limited 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/ 37.00 [ICRA]B+(Stable)/[ICRA]A4; Short Term- ISSUER NOT COOPERATING; Fund Based Rating Continues to remain Cash Credit 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 2001, JPSPL is primarily involved in the milling of basmati rice. The company's milling unit is located in Firozpur, Punjab, in close proximity to the local grain market. It sells rice under its five registered brands in the domestic market which include Rice-o-Punjab, Rice-o-India, 5 Horses, 65 and JPA. JPSPL sells its product across India including New Delhi, Tamil Nadu, Gujarat, Maharashtra and Madhya Pradesh, and also exports rice primarily to the Middle East countries through merchant exporters. KOPELL GROUNDING: Ind-Ra Affirms BB+ Issuer Rating, Outlook Stable ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has revised Kopell Grounding Systems Private Limited's (KGSPL) Outlook to Positive from Stable while affirming its Long-Term Issuer Rating at 'IND BB+'. The instrument-wise rating actions are: -- INR236.70 mil. Fund-based working capital limit affirmed; Outlook revised to Positive from Stable with IND BB+/Positive/ IND A4+ rating; -- INR20 mil. Non-fund-based working capital limit affirmed with IND A4+ rating; and -- INR37.7 mil. Term loan* due on 2028 is withdrawn. *Ind-Ra is no longer required to maintain the ratings, as the agency has received a no-dues confirmation from the respective lenders stating that the rated term loans have been paid in full. This is consistent with Ind-Ra's Policy on Withdrawal of Ratings. The Outlook revision reflects the significant improvement in KGSPL's revenue, margins and credit metrics in FY23 (provisional financials). The margins and the credit profile might witness a correction in FY24 but would remain better than historical levels. Key Rating Drivers KGSPL's revenue increased to INR1697.80 million in FY23 (FY22: INR1,101.1 million; FY21: INR673.24 million) owing to better realizations and higher volumes, backed by growing demand in the international market. Furthermore, the company's new manufacturing unit for copper coupling and clutch became operational from September 2022, and contributed INR60 million to the total revenue. The scale of operations continued to be small. The capacity utilization for copper bonded ground rods stood at 89% in FY23 (FY22: 73%; FY21: 69.5%) and that for copper coupling stood at 9.5%. Ind-Ra expects the revenue to be stable in FY24, backed by repeat orders from existing customers. In addition, KGSPL's EBITDA margin increased to a healthy 23% in FY23 (FY22:5.6%; FY21: 5.9%), on account of a decline in raw material costs, cost of exports and an increase in selling price by 28% yoy. The ROCE was 66% (FY22: 18%; FY21: 15.70%). The main raw material required by the company is copper and mild steel rods. Ind-Ra expects the EBITDA margin to normalize in FY24 but be at levels of 10% - 12%, higher than the levels witnessed during FY21-FY22, due to the addition of high-margin products such as copper coupling and clutches. Moreover, KGSPL's credit metrics improved in FY23 due to an improvement in the absolute EBITDA to INR385.68 million (FY22: INR61.46 million; FY21: INR39.71 million), and full repayment of the term loan of INR37.7 million that had been availed by the company for capex. The interest coverage (operating EBITDA/gross interest expenses) was 23.76x in FY23 (FY22: 6.27x; FY21: 5.91x) and the net leverage (total adjusted net debt/operating EBITDAR) was 0.09x (2.65x; 2.8x). Ind-Ra expects the credit metrics to weaken slightly in FY24 owing to the correction in margins and then remain stable over the medium term, considering the absence of any major debt-led capex plans. The ratings are constrained by customer concentration risks. Around 76% of KGSPL's total turnover comes from one US-based client. Furthermore, KGSPL derives 100% of its revenue from exports and the export realizations are denominated in foreign currency, rendering the company vulnerable to forex risks. However, the risk is minimized by the company's bill discounting mechanism. Liquidity Indicator – Adequate: KGSPL's average maximum utilization of the fund-based limits was 81.42% during the 12 months ended May 2023, and that of the non-fund-based limits was 80.56% over the same period. The cash flow from operations turned positive at INR146.57 million in FY23 (FY22: negative INR68.87 million; FY21: negative INR22.63 million), due to the rise in the absolute EBITDA. The free cash flow also turned positive at INR116.86 million in FY23 (FY22: negative INR67.49 million; FY21: negative INR6.74) as a result of the improvement in the cash flow from operations. The net working capital cycle elongated to 80 days in FY23 (FY22: 73 days; FY21: 78 days), due to a decline in creditor days to 15 days (36 days). The cash and cash equivalent balance stood at INR282.47 million in FY23 (FY22: INR64.98 million; FY21: INR8.63 million).KGSPL does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. The ratings are supported by the promoters' nearly three decades of experience in copper manufacturing, leading to well-established relationships with customers as well as suppliers. Rating Sensitivities Negative: Any deviation in the performance expected by Ind-Ra, leading to a deterioration in the overall credit metrics, with the interest coverage falling below 3x or pressure on the liquidity position, could lead to a negative rating action. Positive: Maintaining the scale of operations, liquidity profile and overall credit metrics with the interest coverage sustaining above 3x, all on a sustained basis, could lead to a positive rating action. Company Profile Incorporated in 2005, KGSPL) is primarily involved in the exports of light engineering goods such as copper bonded grounding rods and accessories to countries such as the US, the UK, and Spain. Its manufacturing unit is located near Uluberia, West Bengal, where it has the facility for electroplating steel rods with copper. KUMARAPALAYAM TOLLWAYS: Ind-Ra Affirms D Bank Loan Issuer Rating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Kumarapalayam Tollways Ltd.'s (KTL) bank loan rating at 'IND D'. The instrument-wise rating actions are: -- INR1,246.8 bil. (reduced from 2,304.98 bil.) Long-term senior project bank loan (long-term bank loan (long-term) affirmed with IND D rating; and -- INR98.2 mil. (reduced from INR154.95 mil.) Subordinated loan (long-term) affirmed with IND D rating. Key Rating Drivers Liquidity Indicator - Poor: The affirmation reflects the potential impact of the outstanding penalty of INR1,276.4 million on KTL's liquidity with respect to delay in execution of major maintenance works, despite the timely debt servicing of the rated debt. The project faces imminent depletion in liquidity of INR820 million against the higher penalty, that may impact its debt servicing ability, since the National Highways Authority of India (NHAI; 'IND AAA'/Stable) had already instructed the escrow bank to remit the penalty amount. KTL has scheduled repayments of INR562 million in FY24. Rating Sensitivities Positive: Timely debt servicing for three consecutive months, along with clarity on the penalty amount and an improvement in liquidity to fund the same will result in a rating upgrade. Company Profile KTL, which is wholly-owned by IVRCL Limited ('IND D (ISSUER NOT COOPERATING)'), is a special purpose company that was set up to widen, operate and maintain a 48km road stretch on the National Highway-47 between Kumarapalayam and Chengappalli in Tamil Nadu. The company reported revenue of INR1,125.2 million in FY23. KVK BIO: Ind-Ra Keeps D Term Loan Rating in Non-Cooperating ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained KVK Bio Energy Private Limited's term loan rating in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating action is: -- INR35 mil. Working capital facility (long-term) maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on best available information The ratings were last reviewed on March 27, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. Company Profile KVK Bio Energy, sponsored by MMS Steel & Power Pvt Ltd (95% stake) and KVK Energy & Infrastructure Private Limited (5% stake), owns a 15MW biomass-based power plant in Chhattisgarh. LIBAS COSUMER: CARE Lowers Rating on INR13.01cr Loan to C --------------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of Libas Cosumer Products Limited (LCPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 13.01 CARE C; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category and Revised from CARE B; Stable Rationale and key rating drivers CARE Ratings Ltd. has been seeking information from LCPL to monitor the rating vide e-mail communications dated June 26, 2023, June 30, 2023, July 7, 2023, July 14, 2023 among others and numerous phone calls. However, despite repeated requests, company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. The revision in long term rating assigned to the bank facilities of LCPL factors in its recent filings with the stock-exchange. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above ratings. The ratings have been revised on account of the company's recent filings with the stock-exchange. Analytical approach: Standalone. CARE Ratings has adopted the standalone approach for analyzing LCPL. Detailed description of the key rating drivers: At the time of last rating on March 3, 2023 the following were the rating strengths and weaknesses (updated for the information available from National Stock Exchange). Key weaknesses * Decrease in ToI along with deterioration in PBILDT Margin in FY23: During FY23, LCPL's total operating income deteriorated by 5.70% to INR44.05 crore (vis-à-vis INR46.72 crore in FY22). Furthermore, the scale of operations continues to be modest with a moderate net worth base of INR51.88 crore as on March 31, 2023 (vis-à-vis INR32.56 crore as on March 31, 2022) which limits its financial flexibility to meet any exigency and depriving it from benefits of economies of scale. Also, during FY23 the PBILDT margins of the company decreased from 13.48% in FY22 to 7.47% in FY23 primarily on account of decrease in sales and simultaneously cost remaining constant as compared to FY22. * Highly working capital-intensive nature of operations: During FY23, the working capital cycle of LCPL remained stable although highly elongated due to high amount of funds blocked in inventory and debtors. The inventory period remained at 240 days as on March 31, 2023 (PY: 233 days), collection period remained at 146 days as on March 31, 2023 (PY: 143 days) and the creditors' period has remained at 93 days as on March 31, 2023 (PY: 83 days). Hence, the operating cycle was at 292 days in FY23 (PY: 294 days). * Susceptibility of profit margins on account of volatile raw material prices: The company's raw material prices have been fluctuating and therefore the cost base remains exposed to any adverse fluctuations in the prices of key raw materials. * Presence in competitive and fragmented industry: LCPL is into cloth designing for various occasions such as marriage, birthday, festivals season on behalf of various well-established brands players which are dominated by numerous independent players which lead to high degree of fragmentation resulting into high level of competition in the segment. Due to high competition, existing players in the industry do not have bargaining power with their customers and hence, players in this industry are operating at relatively low margins. Key strengths * Experienced partners and reputed clientele base: During 1990, Mr. Nishant Mahimtura promoted Libas Fashions as a partnership firm and in 2004 it was incorporated as a private limited company with the name of Libas Designs Private Limited (LDPL).In January 2017, the company got listed on the national stock exchange. Mr. Nishant Mahimtura is acting as a Promoter Director and has around 35 years of experience in the customized garments sector, he looks after finance function. Mr. Riyaz Ganji is a Director, has around 22 years of experience and has looked after the marketing function of the company. Mrs. Reshma Ganji, wife of Mr. Riyaz Ganji is the MD of the company. LCPL is into manufacturing customized & readymade designer garments. It has customer base of well-known film personalities and television actors/actresses. * Established brand name, product variants and tie-up with ecommerce firms: LCPL markets its products under the brand name of Libas, Libas Riyaz Ganji, Libas Reshma Ganji and KNG Riyaz Ganji and it is a well-established fashion designer brand name of around 22 years in Mumbai. Furthermore, it has tie-up with more than 80 Indian & International designers and have inventory of more than 5000 designers wears to choose. LCPL has also tie -up with e-commerce portals. * Comfortable capital structure: The capital structure remained comfortable with overall gearing standing at 0.19x as on March 31, 2023 (vis-à-vis 0.34x as on March 31, 2022) primarily on account of negligible increase in overall debt and simultaneous increase in equity share capital on account of right issue made by the company during the year (50% increase in Equity share capital in FY23 is on account of the right issue). Libas Consumer Products Limited (formerly Libas Designs Limited) (LCPL) was established in 2004 as a private limited company by Mr. Nishant Mahimtura & Mr. Riyaz Ganji. LCPL got listed on NSE on January 9, 2017 and raised INR13.60 crores. LCPL is a Mumbai based company engaged in manufacturing customized designer garments and has its plant situated in Kurla (West), Mumbai measuring 11,900 sq. feet and employs around 57 workers. LCPL sells its products under the brand name of LIBAS, LIBAS RIYAZ GANJI, LIBAS RESHMA GANJI and KNG Riyaz Ganji. The company specializes in contemporary and ethnic men's and women's wear and its offering includes made to orders Sherwanis, light range of Indo -Westerns Kurtas, designer wedding suits, fine men's business suits, formal shirts and trousers. The company is listed on the National Stock Exchange (NSE) with market capitalization of INR37.01 crore and current share prices of INR14.10 as on July 7, 2023. MAA SHEETLA: ICRA Keeps B+ Debt Rating in Not Cooperating --------------------------------------------------------- ICRA has retained the long-term of Maa Sheetla Industries Private Limited in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]B+(Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 6.50 [ICRA]B+ (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Cash Credit to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. MSIPL was incorporated in March 2014 and is engaged in the distribution of IMFL and beer in Uttarakhand. The company has two warehouses in Uttarakhand, in Haldwani and Rudrapur. MSIPL has two other group companies, Maa Sheetla Autowheels Private Limited (having dealership of Volkswagen) and BTC Industries Limited (engaged in manufacturing of Thermo Mechanically Treated bars). MEDIPARK HEALTHCARE: CARE Keeps B- Debt Rating in Not Cooperating ----------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Medipark Healthcare Private Limited (MHPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 8.80 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 2, 2022, placed the rating(s) of MHPL under the 'issuer non-cooperating' category as MHPL 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. MHPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated April 18, 2023, April 28, 2023, May 8, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Medipark Healthcare Private Limited (MHPL) was incorporated in December 2015 by Mr. Avinash Kumar Singh, Dr. Anil Kumar, Dr. Shashat Kumar and Dr. AnnuBabu as a multi-specialty hospital in Patna, Bihar. However, the hospital has started its commercial operation from November 2017. Currently, the hospital is running with 100 beds which consists of 12 Intensive Coronary Care Unit (ICCU) beds, 13 deluxe beds, 11 dialysis beds, 6 emergency beds, 26 Intensive Care Unit(ICU), 7 labour beds, 11 High Dependency Unit(HDU) and 14 general beds. The hospital is equipped with state of the art technology and well qualified & experienced doctors, surgeons and support staffs. The hospital has radiology, urology, CT Scan, dental care unit, Neurology, Nephrology, Cardiology and dermatologist unit. NAVYA FOODS: CARE Keeps B+ Debt Rating in Not Cooperating --------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Navya Foods Private Limited (NFPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 8.95 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 22, 2022, placed the rating(s) of NFPL under the 'issuer non-cooperating' category as NFPL 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. NFPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 8, 2023, May 18, 2023, May 28, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Andhra Pradesh based, Navya Foods Private Limited (NFPL) was incorporated in 2009 and promoted by Mr. Ramesh and his relatives and started commercial operations subsequently. Mr. Ramesh has more than three decades of experience in food processing industry. The company is engaged in processing of mango pulp, guava and other fruit pulps and the processing unit is located at Chittoor district, Andhra Pradesh, with an installed capacity of 250 metric tons (MT) per day. The company procures its raw materials (fruits) from the local market i.e., from local farmers. NFPL sells more than 90% of its products to Exotica Foods Pvt Ltd (IND BBB-(ISSUER NOT COOPERATING) as on May 29, 2018). NECTAR CRAFTS: ICRA Keeps B+ Debt Ratings in Not Cooperating ------------------------------------------------------------ ICRA has retained the Long-Term and Short-Term ratings of Nectar Crafts 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- 7.00 [ICRA]B+ (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Cash Credit to remain under 'Issuer Not Cooperating' category Long Term- 1.60 [ICRA]B+ (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Term Loan to remain under 'Issuer Not Cooperating' category Long Term- 0.40 [ICRA]B+ (Stable) ISSUER NOT Unallocated COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Short Term- 1.00 [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 2005 as a partnership firm, Nectar Crafts is primarily engaged in manufacturing of various knitted fabrics, specializing in Velour, Terry, Polar Fleece and processing & finishing of knitted fabrics. The firm is also into manufacturing and export of garments, albeit on a small scale. The firm has its facilities located in Tirupur (Tamil Nadu). NURSINGSAHAY MUDUNGOPAL: CARE Keeps C Rating in Not Cooperating --------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Shree Nursingsahay Mudungopal (Engineers) Private Limited (SNMPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 9.00 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 3.00 CARE A4; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated June 29, 2022, placed the rating(s) of SNMPL under the 'issuer non-cooperating' category as SNMPL 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. SNMPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 15, 2023, May 25, 2023, June 4, 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, Shree Nursingsahay Mudungopal Engineers Private Limited was incorporated on January 26, 1949. The company is currently being managed by Mr. Anand Das Mundra and Shyam Das. The company is engaged in trading of electrical goods such as generators, wires & cables, transformers, circuit breakers, luminaries, etc. PARCO INSTITUTE: CARE Lowers Rating on INR87cr LT Loan to D ----------------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of Parco Institute of Medical Sciences Private Limited (PIMSPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 87.00 CARE D Revised from CARE B+; Facilities Stable Short Term Bank Facilities 7.00 CARE D Revised from CARE A4 Rationale and key rating drivers The revision in the rating assigned to the bank facilities of Parco Institute of Medical Sciences Private Limited (PIMSPL) takes into account the delays in debt servicing. Rating sensitivities: Factors likely to lead to rating actions Positive factors * Satisfactory track record of timely repayment and servicing of debt obligations for a continuous period of 90 days. * Ability to scale up operations and report operating profits on a consistent basis. Analytical approach: Standalone Detailed description of the key rating drivers: Key weaknesses * Delay in debt servicing: The company has reported delays in debt servicing on its term loans due to the tight liquidity position. * Nascent stage of operations: The hospital commenced operations in October 2021 and recorded INR5.34 Cr as TOI during FY22 and INR16.19 Cr during H1FY23. It reported operating loss of INR4.03 Cr and net loss of INR10.02 Cr in FY22. * Weak capital structure and debt coverage indicators: The capital structure of the company is weak with debt of INR198.32 Cr (of which INR123.80 Cr was in the form of unsecured loan from promoters) against the net worth of INR7.27 Cr as on March 31, 2022. The debt was largely in the form of term loans and was availed to support the project cost of INR300 Cr incurred by the company towards construction capex of the hospital. * Geographical concentration risk in a highly competitive industry: PIMSPL is a regional player in Vadakara, Kozhikode and faces competition from other existing hospitals who are already providing primary/secondary/tertiary care services and also from a large number of private clinics. Further, it also faces competition from hospitals located in nearby places like Calicut and Thalassery. Key strengths * Experienced promoters: PIMSPL is a part of Parco Group, which is engaged in marquee of businesses such as Catering services, Restaurants, Hypermarkets, Jewellery, Kitchen Equipment, Logistics and Education across India and the Middle East. The group is headed by Kungapalli Aboobacker. Liquidity: Poor The company has been delaying its debt obligations on the availed term loans. Parco Institute of Medical Sciences Private Limited, incorporated in 2006, commenced its operation in Dec 2018 with a clinic at Kannur airport, Kerala. It started operating its multispecialty hospital at Vadakara, Kozhikode from FY22 (i.e., Oct 15, 2021). PHOSPHATE COMPANY: Ind-Ra Hikes LongTerm Issuer Rating to 'BB+' --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has upgraded The Phosphate Company Limited's Long-Term Issuer Rating to 'IND BB+' from 'IND BB (ISSUER NOT COOPERATING)'. The Outlook is Stable. The instrument-wise rating actions are: -- INR250 mil. (increased from INR180 mil.) Fund-based working capital limit upgraded with IND BB+/Stable rating; -- INR355 mil. (increased from INR220 mil.) Non-fund-based working capital limit affirmed with IND A4+ rating; and -- INR55.80 mil. Term loans due on November 30, 2026 assigned with IND BB+/Stable rating. The upgrade reflects an increase in TPCL's revenue, profitability and interest coverage ratio in FY23. While the revenue and thus profitability could decline slightly in the near term, Ind-Ra expects the credit metrics to remain moderate as the company intends to keep its debt levels stable or reducing. Key Rating Drivers The upgrade reflects TPCL's revenue surging 26.08% yoy to INR1,469.67 million in FY23 and up 90.44% yoy in FY22 along with an improvement in the profitability. The revenue growth is attributed to an increase in the overall demand post the COVID-19 pandemic and higher realizations, while the sales volumes generated were 76,430MT in FY23 (FY22: 79,923MT, FY21: 59,617MT). The company plans to boost production volumes of fertilizers, by increasing the existing capacity utilization to 78% (FY23: 71%), amid the rising demand for its products in the market. Ind-Ra expects the revenue to slightly deteriorate during FY24, as any rise in production volumes is likely to be offset by the declining prices of finished product. The scale of operations continues to be small. Moreover, the credit metrics remained moderate in FY23, with the gross interest coverage (operating EBITDA/gross interest expense) increasing slightly to 2.89x (FY22: 2.52x, FY21: 2.48x) and despite the net leverage (total adjusted net debt/operating EBITDAR) deteriorating to 4.6x (2.7x). The gross interest coverage improved during FY23 due to an increase in the absolute EBITDA to INR96.43 million in FY23 (FY22: INR84.64 million, FY21: INR75.23 million), while the net leverage deteriorated due to increased month-end utilization of the fund-based and non-fund-based limits and an infusion of unsecured loans amounting INR50 million during the year. Ind-Ra expects the credit metrics to remain moderate in FY24, as the company does not have plans for a further increase in their debt position. The ratings continue to be constrained by TPCL's modest margins which declined to 6.56 % during FY23 (FY22: 7.26%, FY21: 12.29%) on account of higher raw material costs, with ROCE of 8.2% (8.1%, 7%). Ind-Ra expects the margins to fluctuate in the near to medium term, owing to volatility in raw material prices. Liquidity Indicator - Stretched: The net cash conversion cycle elongated to 94 days during FY23 (FY22: 29 days, FY21: 113 days), due to a longer inventory holding period of 106 days (58 days, 135 days). The company has scheduled debt repayments of around INR20 million and INR18.90 million in FY24 and FY25, respectively. The average maximum utilization of the fund-based limits and non fund based limits was around 60% and 78%, respectively, during the 12 months ended May 2023. The cash and cash equivalents stood at INR0.45 million at FYE23 (FYE22: INR0.48 million). The cash flow from operations had decreased to INR32.78 million in FY22 (FY21: INR129.42 million) owing to the changes in working capital; consequently, the free cash flow had declined to INR29.47 million (INR128.23 million). Furthermore, the cash flow from operations turned negative INR136.47 million during FY23, due to further unfavorable changes in the working capital led by the hike in prices. However, Ind-Ra expects the cash flow position to improve in the near term with the expected release of working capital. The company has planned a capex of INR12 million during FY25, towards upgradation of pollution control equipment, which is to be funded out of internal accruals. The ratings continue to be supported by the promoters' over six decades of experience in manufacturing fertilizers that has led to longstanding ties with customers and suppliers. Rating Sensitivities Positive: Growth in the scale of operations as well as the operating profitability, leading to an improvement in credit metrics, and an improvement in the overall liquidity, all on a sustained basis, will be positive for the ratings. Negative: A substantial decline in the scale of operations or the operating profitability, or deterioration in liquidity or the gross interest coverage reducing below 2x, on a sustained basis, would be negative for the ratings. Company Profile Incorporated in February 1949, TPCL is one of the oldest single super phosphate manufacturing units in eastern India. It was founded by the Bangur and Khaitan families, who are accredited with industrialization in eastern India. The company has an installed capacity of 112,800MT for manufacturing fertilizers. PRASSANNA SPINNING: Ind-Ra Assigns BB+ Term Loan Rating ------------------------------------------------------- India Ratings and Research (Ind-Ra) has rated Prassanna Spinning Mills Private Limited's (PSMPL) bank facilities as follows: -- INR650 mil. Fund-based working capital limits assigned with IND BB+/Positive/IND A4+ rating; and -- INR222.7 mil. Term loan due on FY28 assigned with IND BB+/ Positive rating. The ratings reflect PSMPL's negative EBITDA and the consequent weak credit metrics during FY23. The Positive Outlook reflects the likelihood of stabilization of yarn prices and operations returning to normalcy with better absorption of fixed administrative costs in FY24. Key Rating Drivers EBITDA Margins Vulnerable to Raw Material Price Fluctuations: PSMPL's margins are susceptible to fluctuations in the price of key raw material (raw cotton), which is dependent upon demand and supply in the global market. The company had to incur EBITDA losses of INR109 million in FY23 as against a profit of INR389.84 million in FY22 (FY21: INR133.16 million), owing to a significant drop in the cotton prices due to a demand-supply mismatch. Consequently, the margins turned negative to 3.7% in FY23 (FY22: 11.16%, FY21: 6.35%). FY23 financials are provisional in nature. PSMPL purchased a 5.55MW windmill from a group company Sri Velayudhaswamy Spinning Mills Private Limited in June 2023. This will provide the company with 95 lakh of captive power units and thus power cost savings of INR35 million to 40 million per year. Moreover, the promoters are planning to merge Sri Velayudhaswamy Spinning Mills with PSMPL by end-FY24 which would provide synergistic benefits as both companies operate in a similar line of business. Liquidity Indicator - Stretched: The average maximum utilization of the fund-based working capital limits was around 75.94% for the 12 months ended June 2023. The fund flow from operations turned positive to INR191.79 million in FY22 (FY21: negative INR29.14 million) due to optimum capacity utilization of spindles and the increase in cotton prices, leading to a rise in the price of cotton yarn. The working capital cycle shortened to 76 days in FY22 (FY21: 114 days) because of a decline in the receivable period to 51 days (62 days) and inventory holding period to 51 days (106 days). It has scheduled debt repayments of INR3.95 million and INR4.5 million in FY24 and FY25, respectively, which would be met through drawing under the fund-based limits, considering the negative cash flows reported in FY23. The company had unencumbered cash and cash equivalents of INR2.25 million at FYE22 (FYE21: INR7.94 million). Medium Scale of Operations: PSMPL's revenue fell to INR2,945.4 million in FY23 (FY22: INR3,494 million; FY21: INR2,096 million), due to a fall in the demand for cotton yarn as well as the significant drop in the cotton prices. The revenue had increased in FY22 because of the optimum utilization of capacities and an increase in the price of cotton yarn. Modest Credit Metrics: The credit metrics deteriorated in FY23 as the company reporting EBITDA losses. During FY22, the interest coverage (operating EBITDA/gross interest expense) had improved to 6.59x (FY21: 1.60x) and the net leverage (total adjusted net debt/operating EBITDA) to 2.19x (6.46x), due to improved EBITDA. The management has confirmed that the company repaid debt obligations from the past profits generated and the unutilized fund-based limits during FY23. Experienced Promoter: PSMPL is run by S. D. Rathinasabapathy, who has nearly two decades of experience in the textile business and looks after the day-to-day operations of the company. Rating Sensitivities Positive: An improvement in the scale of operations and profitability, leading to the interest coverage exceeding 2.0x and an improvement in liquidity position, all on a sustained basis, will be positive for the ratings. Negative: A significant decline in the scale of operations or the interest coverage remaining below 2.0x or sustained EBITDA losses or deterioration in the liquidity position for FY24 will be negative for the ratings. Company Profile Incorporated in 2006, Dindigul-based PSMPL manufactures compact cotton yarn, primarily the count range of 30s. R. Geetha, S. D. Rathinasabapathy and P. S. Veluswamy are the promoters. The promoters are related to the Sri Shanmugavel Mills Group, a leading name in the South Indian textile industry. RKN PROJECTS: CARE Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------- CARE Ratings said the rating for the bank facilities of RKN Projects Private Limited (RPPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 25.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 25.00 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 28, 2022, placed the rating(s) of RPPL under the 'issuer non-cooperating' category as RPPL 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. RPPL 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). RKN Projects Private Limited (RPPL) was incorporated on January 6, 2016, (erstwhile Nallapaneni Ramesh Kumar which was established in the year 1993 and in the year 2016, the company's name has changed to current nomenclature RPPL), promoted by Mr. N. Ramesh Kumar and Mrs. N. Sreelakshmi (Spouse of Mr. N Ramesh Kumar). The company is registered as a Special Class I contractor and engaged in execution of civil construction works like canal works and earth works in the state of Andhra Pradesh under direct tender basis. RNM INFRA: Liquidation Process Case Summary ------------------------------------------- Debtor: RNM Infra Private Limited 30, Mukherjee Para Lane P.O-Serampore Hooghly West Bengal 712201 Liquidation Commencement Date: June 22, 2023 Court: National Company Law Tribunal Kolkata Bench Liquidator: Mr. Kanakabha Ray 2nd Floor, YMCA Building 25, Jawaharlal Nehru Road Kolkata-700087 Email: kanak1686@gmail.com Email: cirp.rnminfra@gmail.com Last date for submission of claims: July 22, 2023 ROYAL MUDHOL: Ind-Ra Keeps BB+ Issuer Rating in Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Royal Mudhol Hospital and Research Centre LLP's (RMHRC) Long-Term Issuer Rating of 'IND BB+' on Rating Watch with Developing Implications. The instrument-wise rating action is: -- INR1,647.5 bil. Term loans due on March 2032 maintained on Rating Watch with Developing Implications with IND BB+/Rating Watch with Developing Implications. Analytical approach: Ind-Ra has maintained the ratings on Rating Watch with Developing Implications on the back of the pending equity infusion from an investor by acquiring a controlling stake in RMHRC, as the investor's due diligence continues. At end-June 2023, the investor had maintained a security deposit of INR150 million. While the ratings derive comfort from the investor's security deposit maintained with RMHRC, the impact of the equity infusion and other factors such as changes in the corporate structure, the business and financial performance, liquidity position and shareholding pattern, remain to be seen. Ind-Ra will continue to closely monitor the completion of the due diligence and its impact. Ind-Ra will resolve the rating watch post the availability of the respective documents and information pertaining to the transaction. Key Rating Drivers The ratings reflect RMHRC's nascent stage of operations as the hospital commenced operations at end-December 2022 with 196 beds. During 1QFY24, it booked a revenue of INR3.0 million (4QFY23: INR3.5 million). As per the management, the hospital has 20 operational beds of which 18 were occupied during 1QFY24 (4QFY23: 7 beds). The management expects the firm to attain breakeven in FY24, its first full year of operations. Furthermore, the management expects the firm to achieve a positive EBITDA margin in FY25, due to a better absorption of fixed cost. Ind-Ra expects the equity infusion, which will result in a controlling stake of the strategic investor, to improve RMHRC's liquidity position and boost operating performance. Liquidity Indicator - Stretched: Of the total project cost of INR2,476.7 million, 66% was funded through bank debt and the remaining through promoters' equity. The total sanctioned term loans amounting to INR1,647.5 million is to be repaid in 10 years. At end-June 2023, INR1,518.6 million worth of loans have been disbursed and the equity capital from promoters has been fully infused. The debt repayment will commence from January 2024 amounting to INR10.4 million and INR49.4 million in FY25. The day-to-day activities will be funded through promoters' contribution and the proposed equity infusion. As per the management, RMHRC does not have any plan to avail working capital limits, as the security deposit from the strategic investor is utilized for working capital purposes. The ratings are constrained by intense competition from several large hospitals in Pune. The firm is also exposed to regulatory risks inherent to the healthcare industry, mainly in the form of price capping for medical procedures and devices. However, the ratings derive comfort from the creation of a debt service reserve account equivalent to three months of interest payments. Rating Sensitivities The Rating Watch with Developing Implications indicates that the ratings may be affirmed, downgraded or upgraded upon resolution. Ind-Ra is likely to resolve the rating watch once the agency receives clarity on the impact of the transaction upon the shareholding pattern, corporate structure and liquidity position. Company Profile Incorporated in 2015, RMHRC operates a multi-specialty quaternary hospital in Pune since December 2022. Vijaysinh Maurya and Menkaraje Maurya are the promoters. At end-March 2023, the hospital was operational with a capacity of 196 beds. The hospital provides healthcare services for various departments such as cardiology & cardiovascular and thoracic surgery, orthopedics, trauma with joint replacement, nephrology, urology, neurology & neuro surgery, oncology including robotic surgery, hepatology, plastic surgery, gynecology and in vitro fertilization, among others. SADARAM JINING: CARE Keeps D Debt Rating in Not Cooperating ----------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Sadaram Jining And Pressing Industries (SJPI) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 8.19 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 5, 2022, placed the rating(s) of SJPI under the 'issuer non-cooperating' category as SJPI 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. SJPI 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). SJPI Patan-Gujarat based partnership firm was established in 2014 by Mr. Bharat Bhatiya, Mr. Bhavesh Patel, Mr. Chandanji Thakor, Mr. Dashrat Bhatiya and Mr. Mafa Modi. The firm is engaged in cotton ginning and pressing of raw cotton. SJPI has commenced its operation from August 2014. The manufacturing unit of the firm is located in Patan, Gujarat which has an installed capacity of 14,400 Metric tonnes per annum (MTPA) as on March 31, 2016 for raw cotton processing. SHIVAM PARIVAR: Insolvency Resolution Process Case Summary ---------------------------------------------------------- Debtor: Shivam Parivar Developers Private Limited 2/13, Siddharth Nagarpart V, Prabhodhan Krida Bhavan, Goregaon (W), Mumbai 400104, Maharashtra, India Insolvency Commencement Date: June 23, 2023 Estimated date of closure of insolvency resolution process: December 20, 2023 Court: National Company Law Tribunal, Pune Bench Insolvency Professional: Rajesh S. Shah 635/84, Siddharth, Vijayanagar Colony, Next to MSEDCL Building, Opp to Neelayam Theatre, Pune 411 030 Email: rsshah27@hotmail.com Email: cirpspdpl@gmail.com 1. Sanket Vijaykumar Deshpande 2. Mandar Shrikant Wagh 3. Uday Shreeram Sakrikar Last date for submission of claims: July 10, 2023 SHIVPRASAD FOODS: Ind-Ra Moves B+ Issuer Rating to NonCooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Shivprasad Foods & Milk Products' Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR140 mil. Fund-based working capital limits migrated to non- cooperating category with IND B+ (ISSUER NOT COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating; -- INR16.1 mil. Working capital demand loan migrated to non- cooperating category with IND B+ (ISSUER NOT COOPERATING) rating; -- INR86.81 mil. Term loans due on March 2032 migrated to non- cooperating category with IND B+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The issuer did not co-operate, based on the best available information. The ratings were last reviewed on June 9, 2022. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. Company Profile Established in 2009, Maharashtra-based Shivprasad Foods and Milk Products is engaged in the processing of milk and the manufacturing of milk products. SUPERIOR FILMS: Ind-Ra Affirms B+ Issuer Rating, Outlook Stable --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Superior Films Private Limited's (SFPL) Long-Term Issuer Rating at 'IND B+'. The Outlook is Stable. The instrument-wise rating action is: -- INR633.7 mil. (increased from INR626.80 mil.) Term loan due on May 2029 affirmed with IND B+/Stable rating; and -- INR11.3 mil. Non-fund-based working capital affirmed with IND A4 rating. Key Rating Drivers Liquidity Indicator - Stretched: SFPL's debt service coverage ratio (DSCR) for FY23 was 0.99x (FY22: negative 0.97x). The company has scheduled repayments of INR61.70 million and INR81.60 million in FY24 and FY25, respectively. Ind-Ra expects the company's average DSCR to remain over 1x over FY24-FY26. The cash and cash equivalents stood at NR6.31 million at FYE23 (FYE22: INR7.11 million; FYE21: INR11.5 million). The average maximum monthly utilization of non-fund-based limits was 19.96% during the 12 months ended May 2023. SFPL does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. The rating factors in SFPL's small scale of operations with its revenue improving to INR222.11 million in FY23 (FY22: INR199.36 million; FY21: INR179.08 million), due to an increase in the lease rentals and common area maintenance charges. In the medium term, the agency expects the revenue to increase, owing to the presence of a price-escalation clause after every three years in its lease agreements (next escalation is due in FY25). The company's EBITDA margin remained modest and declined to 48% in FY23 (FY22: 58%; FY21: 72%), due to an increase in the electricity and diesel expenses. The company's return on capital employed was 4.1% in FY23 (FY22: 4.5%; FY21: 5%). Ind-Ra expects the margin to remain at the similar levels in the medium term and is likely to be marginally impacted by higher inflation. The company's credit metrics remained weak with its gross interest coverage (operating EBITDA/gross interest expense) falling to 1.7x in FY23 (FY22: 1.8x; FY21: 2x) and the net leverage (adjusted net debt/operating EBITDA) increased to 8.1x (8x; 6.5x), on account of a decline in the EBITDA to INR106.42 million (INR115.11 million; INR128.93 million). During FY23, SFPL availed a loan of INR60 million for repair and maintenance. In the medium term, Ind-Ra expects the credit metrics to remain at the similar level in the absence of any major debt-led capex. The rating is also constrained by the customer concentration risk as 99.1% of the total leasable area, i.e. 108,763.38 square feet was leased to INOX for 15 years starting from 2014. However, the rating is supported by the long-term nature of the contracts with PVR INOX, which is India's largest multiplex chain having a presence in 110 cities, 350 multiplexes and over 1,650 screens, resulting in high revenue visibility in the coming financial years. There is a lock-in period of three years during which no party can terminate the agreements. The company also receives common area maintenance income on the sold area. In February 2023, INOX merged with PVR Limited ('IND AA-/Rating Watch with Developing Implications'), which is India's largest multiplex chain. Ind-Ra expects the long-term contract with PVR INOX to provide a steady income stream to SFPL over the medium term. Rating Sensitivities Negative: Any decline in the occupancy levels and/or delays in the receipt of rental income, leading to a deterioration in the DSCR, all on a sustained basis, will be negative for the ratings. Positive: Higher-than-expected rental income, leading to higher cash generation and/or a substantial decline in the debt subsequently, leading to an improvement in the DSCR, all on a sustained basis, will be positive for the ratings. Company Profile SFPL was incorporated in 1980 and is engaged in the business of commercial malls cum multiplexes. In December 2008, the company transferred its multiplexes operations along with the associated moveable assets to its sister concern, Satyam Cineplexes Ltd, as part of a business transfer agreement. The company owned three prime multiplexes in Delhi: Satyam Cineplex Nehru Place, Satyam Cinexplex Patel Nagar and Satyam Cineplex JanakPuri. SURYATAAP ENERGIES: Ind-Ra Keeps B+ Rating in Non-Cooperating ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Suryataap Energies & Infrastructure Private Limited's senior project term loans' rating in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating action is as follows: -- INR259.2 mil. Senior project term loan due on March 31, 2034 maintained in the non-cooperating category with IND B+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on best available information. The rating was last reviewed on March 5, 2020. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. Company Profile Suryataap Energies & Infrastructure is a wholly owned subsidiary and special purpose vehicle of Hindustan Cleanenergy 'IND D (ISSUER NOT COOPERATING)'. It was formed to build and operate a 5MW solar photovoltaic power plant in Sonitpur, Assam. TERRY TOWELS: Ind-Ra Cuts LongTerm Issuer Rating to 'D' ------------------------------------------------------- India Rating and Research (Ind-Ra) has downgraded India Terry Towels Private Limited's (ITTPL) Long-Term Issuer Rating to 'IND D (ISSUER NOT COOPERATING)' from 'IND BB- (ISSUER NOT COOPERATING)'. The instrument-wise rating actions are: -- INR588.48 mil. Term loan (Long-term) due on March 2028 downgraded with IND D (ISSUER NOT COOPERATING) rating; -- INR50 mil. Fund-based working capital limits (Long-term/Short- term) downgraded with IND D (ISSUER NOT COOPERATING) rating; and -- INR52.5 mil. Non-fund-based working capital limit (Short-term) downgraded with IND D (ISSUER NOT COOPERATING) rating. Key Rating Drivers The downgrade reflects the ongoing delays in ITTPL's servicing debt obligations, as per the no default statement (NDS) received by the agency. Rating Sensitivities Positive: Timely debt servicing for at least three consecutive months will lead to a positive rating action. Company Profile Incorporated in 2016, ITTPL manufactures cotton yarn. THREE C SHELTERS: Buyers Can File Their Claims Within 4 Weeks ------------------------------------------------------------- The Times of India reports that the National Company Law Appellate Tribunal (NCLAT) has given a final chance to the allottees of Orris Greenopolis project in Sector 89 to file their claims to become part of creditors within four weeks, following the insolvency proceedings against Three C Shelters, one of the promoters of the housing project. The corporate insolvency resolution process (CIRP) of Three C Shelters Pvt Ltd of the Three C group of companies had started on October 16, 2020. Acting on the bona fide application filed by the homebuyers associations - Greenopolis Welfare Association and GWC - the National Company Law Tribunal (NCLT) had passed an order on May 26 this year, asking the IRP to verify all the claims received in this CIRP again as there were dubious or fraudulent claims which had infiltrated the committee of the genuine creditors, TOI recalls. Further, NCLAT bench chaired by Justice Ashok Bhushan on July 19 further stamped the May 26 order passed by NCLT and further insisted that the order for the reverification of claims is just and the verification of claims should be carried out and the report should be submitted within four weeks. TOI relates that the Interim Resolution Professional (IRP) of 3C Shelters Promoters for Greenopolis project, Pradeep Kumar Kaushik, said so far around 750 claims have been submitted, of which 350 have been physically verified. "There is no need for these 350 verified claims to be filed again, but other allottees can file the claim," he said. In Sector 89, Orris Developers was issued a licence by the Town and Country Planning Department (DTCP) to develop a group housing township in about 37 acres in collaboration with Three C Shelters Pvt Ltd— who had to construct the project. "A total of 1,810 flats were to be constructed, but Three C company did not construct the flats, instead allegedly siphoned off about INR612 crore collected from the allottees and transferred them to other companies" said an official. ===================== N E W Z E A L A N D ===================== FCL NV: Court to Hear Wind-Up Petition on Aug. 1 ------------------------------------------------ A petition to wind up the operations of FCL NV Limited will be heard before the High Court at Rotorua on Aug. 1, 2023, at 10:00 a.m. The Commissioner of Inland Revenue filed the petition against the company on June 19, 2023. The Petitioner's solicitor is: Timothy Saunders Inland Revenue, Legal Services 21 Home Straight PO Box 432 Hamilton FORMCO CONSTRUCTION: Creditors' Proofs of Debt Due on Aug. 18 ------------------------------------------------------------- Creditors of Formco Construction & Development 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 12, 2023. The company's liquidator is Ryan Eathorne. JUN YUE: Benjamin Francis Appointed as Receiver ----------------------------------------------- Benjamin Francis of Blacklock Rose Limited on July 31, 2023, were appointed as Receiver of Jun Yue Investment Limited. The receiver may be reached at: Blacklock Rose Limited Suite 4292 Hibiscus Coast Highway Orewa LUXURY NAILS: Court to Hear Wind-Up Petition on July 28 ------------------------------------------------------- A petition to wind up the operations of Luxury Nails Limited will be heard before the High Court at Auckland on July 28, 2023, at 10:45 a.m. The Commissioner of Inland Revenue filed the petition against the company on May 12, 2023. The Petitioner's solicitor is: Cloete Van Der Merwe Inland Revenue, Legal Services 5 Osterley Way Manukau City Auckland 2104 WAIRARAPA TYRE: Creditors' Proofs of Debt Due on Aug. 16 -------------------------------------------------------- Creditors of Wairarapa Tyre Fitters Limited are required to file their proofs of debt by Aug. 16, 2023, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 10, 2023. The company's liquidator is Ryan Eathorne. ===================== P H I L I P P I N E S ===================== PH RESORTS: Seeks to Increase Capital Stock ------------------------------------------- Iris Gonzales at The Philippine Star reports that PH Resorts Group Holdings Inc., the listed gaming and hospitality company of Davao-based businessman Dennis Uy, is seeking to increase its authorized capital stock by PHP7 billion to give it more leeway to issue new shares and raise fresh capital. This is part of the company's agenda set for shareholders' approval during its annual stockholders meeting scheduled on Wednesday, July 26, the report says. It will also seek the approval of issuance of shares for an equity offering, private placement, top-up placement or similar transaction to be determined by its board of directors. According to the Star, PH Resorts also wanted to sell some of its assets, but the Securities and Exchange Commission (SEC) denied the company's request to include the asset sale in the agenda of its upcoming stockholders meeting. The SEC said the asset sale was not part of the agenda the company submitted last May. The Star notes that the firm, which is part of Uy's Udenna Group, is raising against time to fix its finances after last year's planned sale of some of its assets to Enrique Razon's Bloomberry Resorts Corp. fell through. SyCip Gorres Velayo & Co. (SGV), PH Resorts' auditing firm, has already sounded the alarm on the listed hospitality company's ability to continue operating, the Star relates. PH Resorts, for its part, said it has ongoing discussions with lenders, including state-owned Land Bank of the Philippines, to support its liquidity requirements by extending maturities to up to September 2028. In a report contained in a recent filing by PH Resorts, SGV said PH Resorts had incurred a net loss of PHP801.9 million in 2022 and PHP153 million in 2021, resulting in a deficit of PHP1.1 billion and PHP337.5 million as of end-2022 and end-2021, respectively, the Star discloses. According to the Star, SGV said this was a material uncertainty as this put the company's current liabilities in excess of its assets by PHP2 billion at end-2022 alone and a negative operating cash flow of PHP67.3 million. "These conditions, along with other matters as discussed, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern," SGV said. The Star adds that PH Resorts said that it is in talks with Landbank to further extend the principal and interest payments of its loans with the state-owned lender. Currently, these are due to be paid equally over the remaining life of the loan starting March 3, 2024 until the loan's maturity on Sept. 1, 2028. PH Resorts Group holdings Inc operates as a holding company. The Company, through its subsidiaries, manages and maintains tourism-related businesses which includes resort and casino projects. PH Resorts Group holdings serves customers in the Philippines. ================= S I N G A P O R E ================= FINGER SPA: Commences Wind-Up Proceedings ----------------------------------------- Members of Finger Spa & Beauty Palace Pte Ltd, on July 14, 2023, passed a resolution to voluntarily wind up the company's operations. The company's liquidator is: Ms. Chan Li Shan c/o Agile 8 Solutions 133 Cecil Street #14-01 Keck Seng Tower Singapore 069535 FIRST CENCON: Commences Wind-Up Proceedings ------------------------------------------- Members of First Cencon Enterprise Pte Ltd, on July 14, 2023, passed a resolution to voluntarily wind up the company's operations. The company's liquidator is: Mr. Gea Ban Peng c/o 10 Anson Road #29-04A International Plaza Singapore 079903 LEWEK SHIPPING: Final Meeting Set for Aug. 24 --------------------------------------------- Lewek Shipping Pte Ltd and Lewek Aries Pte Ltd will hold final meetings for its creditors on Aug. 24, 2023, at 10:00 a.m., and 11:00 a.m., respectively, at 144 Robinson Road, #14-02 Robinson Square, in Singapore. Abuthahir Abdul Gafoor Yessica Budiman c/o AAG Corporate Advisory 144 Robinson Road #14-02 Robinson Square Singapore 068908 MW GROUP: Creditors' Meetings Set for Aug. 1 -------------------------------------------- MW Group Pte Ltd will hold a meeting for its creditors on Aug. 1, 2023, at 2:00 p.m., via audio-visual conference on the Zoom Platform. Agenda of the meeting includes: a. to appoint Committee of Inspection Members to fill vacancies pursuant to Section 278(1) and 278(5) of the Companies Act, Cap. 50; b. to provide an update on the status of liquidation; and c. to consider any other matter which may properly be brought before the meeting. The liquidator may be reached at: Farooq Ahmad Mann c/o Mann & Associates PAC 3 Shenton Way #03-06C Shenton House Singapore 068805 SAL TRADING: Court Enters Wind-Up Order --------------------------------------- The High Court of Singapore entered an order on July 14, 2023, to wind up the operations of Sal Trading Pte. Ltd. Central Sugars Refinery Sdn. Bhd. filed the petition against the company. The company's liquidator is: Farooq Ahmad Mann c/o Mann & Associates PAC 3 Shenton Way #03-06C Shenton House Singapore 068805 ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman, Editors. Copyright 2023. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. 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