/raid1/www/Hosts/bankrupt/TCRAP_Public/230814.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Monday, August 14, 2023, Vol. 26, No. 162
Headlines
A U S T R A L I A
ACURA BIO: Second Creditors' Meeting Set for Aug. 17
BARRETTS BAKERY: Goes Into Administration Owing AUD2MM to ATO
DIJUN KLEAN: First Creditors' Meeting Set for Aug. 17
KALIUM LAKES: Founder Seeks Probe on NAIF Role in Collapse
MADDISON WRIGHT: Second Creditors' Meeting Set for Aug. 17
SOFC PTY: First Creditors' Meeting Set for Aug. 17
UFC GYM AUSTRALIA: Macarthur Franchise Goes Into Liquidation
URBAN METRO: Second Creditors' Meeting Set for Aug. 17
C H I N A
COUNTRY GARDEN: Moody's Cuts CFR to Caa1 & Unsecured Debt to Caa2
COUNTRY GARDEN: Said to Start Debt Restructuring Soon
COUNTRY GLOBAL: Expects to Report Record First-Half Loss
DALIAN WANDA: Officials Probed by Police Amid Anti-Graft Campaign
GUANGZHOU FINELAND: Moody's Withdraws 'Ca' Corporate Family Rating
ZHONGRONG INT'L: Fails to Pay Out Maturing Products, Clients Say
I N D I A
A. GEERI: CRISIL Hikes Rating on INR20cr Loan to B-
ASHOK KUMAR: Ind-Ra Affirms B+ LT Issuer Rating, Outlook Stable
BL KASHYAP: CRISIL Hikes Rating on INR55cr Cash Loan to B-
BOXOVIA PRIVATE: Ind-Ra Moves BB- Issuer Rating to NonCooperating
CALICO TRENDS: CRISIL Withdraws B Rating on INR8cr Loan
CITIES INNOVATIVE: CRISIL Cuts Rating on INR6.5cr Loan to D
CONVICTION HR: CRISIL Moves B+ CCR to Not Cooperating Category
DANU WIND: Ind-Ra Keeps D Term Loan Rating in Non-Cooperating
DESEIN PRIVATE: CRISIL Moves B+ Debt Ratings to Not Cooperating
DUTTA AGRO: CRISIL Moves B- Debt Ratings to Not Cooperating
ELYSIUM PHARMACEUTICALS: Ind-Ra Moves BB+ Rating in NonCooperating
FUTURE MOBILE: CRISIL Withdraws B+ Rating on INR75cr Cash Loan
GOODLUCK MEDICAL: CRISIL Moves B+ Debt Rating to Not Cooperating
HEENA ENTERPRISES: CRISIL Withdraws B Rating on INR12cr Loan
INDIA: Only 6 Cases Admitted Under Pre-Pack Insolvency for MSMEs
INDIRA PRIYADARSHINI: Ind-Ra Keeps D Rating in Non-Cooperating
KILBURN ENGINEERING: Ind-Ra Moves BB+ Rating in NonCooperating
M. E. ENERGY: CRISIL Moves B Debt Ratings to Not Cooperating
MAYFAIR HOUSING: CRISIL Withdraws B Debt Rating on LT Loan
MEHRA NOVELTIES: CRISIL Moves B Debt Rating to Not Cooperating
PRAGATI GRANITO: CRISIL Moves B+ Debt Ratings to Not Cooperating
PUNE KHARADI: Ind-Ra Assigns BB- Term Loan Rating, Outlook Stable
R J BUILDCON: CRISIL Moves B+ Debt Rating to Not Cooperating
RAILTRACK CONCRETE: CRISIL Ups Rating on INR3.5cr Loan to B+
ROHIT EXTRACTIONS: Ind-Ra Affirms BB Issuer Rating, Outlook Stable
S.S. INFRAZONE: CRISIL Moves B+ Debt Rating to Not Cooperating
SECURENS SYSTEMS: Ind-Ra Cuts LongTerm Issuer Rating to 'BB'
SHANKER PLASTIC: CRISIL Raises Rating on INR11.5cr Cash Loan to B
SHIRAGUPPI SUGAR: Ind-Ra Keeps BB Issuer Rating in NonCooperating
SHITAL FIBERS: CRISIL Withdraws D Rating on INR80cr Cash Loan
SHIVAM CONSTRUCTION: CRISIL Moves B+ Rating to Not Cooperating
SIDHAARTH EXPORTS: CRISIL Moves B+ Ratings to Not Cooperating
SIMANCHAL CONSTRUCTION: CRISIL Moves B+ Rating to Not Cooperating
STRESCON INDUSTRIES: CRISIL Reaffirms B+ Rating on INR10.5cr Loan
TALIB HUSSAIN: CRISIL Moves B+ Debt Ratings to Not Cooperating
VALLEY FRESH: CRISIL Moves Lowers Rating on INR12.75cr Loan to B+
VELAMMAL MADURAI: CRISIL Assigns B+ Rating to INR125cr Loan
VYAPARAVIJAYAM TRADES: CRISIL Moves B+ Rating to Not Cooperating
I N D O N E S I A
JAPFA COMFEED: S&P Affirms 'B+' LongTerm ICR, Outlook Negative
TITAN INFRA: $20MM Bank Debt Trades at 19% Discount
TITAN INFRA: $430MM Bank Debt Trades at 19% Discount
N E W Z E A L A N D
GLAMOUR GIRLS: Court to Hear Wind-Up Petition on Aug. 31
HILL LUMBER: Court to Hear Wind-Up Petition on Sept. 1
INSTALL PRO: Waterstone Insolvency Appointed as Receivers
KAPITI COAST: Creditors' Proofs of Debt Due on Aug. 25
OLIVIANZ NEWMARKET: Creditors' Proofs of Debt Due on Sept. 1
S I N G A P O R E
BUILDERS HUB: Commences Wind-Up Proceedings
GASTRONOMICA PTE: Commences Wind-Up Proceedings
HIN LEONG: Civil Trial Against Founder and His Two Children Starts
KGGD PTE: Court Enters Wind-Up Order
SHADHIN PTE: Creditors' Proofs of Debt Due on Sept. 11
SWISSCO ASIA: Creditors' Meetings Set for Aug. 30
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A U S T R A L I A
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ACURA BIO: Second Creditors' Meeting Set for Aug. 17
----------------------------------------------------
A second meeting of creditors in the proceedings of Acura Bio Pty
Ltd has been set for Aug. 17, 2023 at 11:30 a.m. virtual meeting.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Aug. 15, 2023 at 4:00 p.m.
Anthony Norman Connelly, William James Harris and Mark Alfred
Holland of McGrathNicol were appointed as administrators of the
company on July 13, 2023.
BARRETTS BAKERY: Goes Into Administration Owing AUD2MM to ATO
-------------------------------------------------------------
News.com.au reports that a popular bakery chain has collapsed owing
AUD2 million, with administrators urgently trying to find a
solution to save the business.
The West Australian business, Barretts Bakery, owes the Australian
Taxation Office AUD2 million.
Administrators were given control of the string of bakeries, which
first opened in Perth in 1998, on July 27, news.com.au discloses
citing a notice published on the ASIC website.
Mervyn Kitay, the principal of the insolvency firm Worrells, was
set to hold an initial meeting on Aug. 8 in an effort to find a
solution to save the struggling business.
If the administrator is unable to come to a workable outcome, the
bakeries will likely be sold or liquidated.
News.com.au relates that Mr. Kitay told 7 News said the business's
struggles during the Covid pandemic led to the mounting AUD2
million legacy debt.
A legacy debt refers to debt that is above what could have been
expected in relation to GDP and inflation behaviour.
The ATO has provided general advice that if legacy debt is not
paid, the company director becomes liable.
"As a company director you are responsible for ensuring that the
company's tax and super obligations are reported and paid on time,"
the advice states.
"If your company does not pay certain liabilities by the due date,
we can recover these amounts from you personally as a current or
former company director."
According to news.com.au, Mr. Kitay said increasing the director
penalty notice can be a "powerful weapon" to force repayment.
The ATO issued more than 17,000 penalty notices during 2022-23,
which included thousands of legacy debts being recalled by the
government in a bid to target non-compliant companies.
Mr. Kitay said senior management could become personally liable for
tax and super obligations if the debt was unpaid.
The bakery has seven stores across the city, including in the Perth
CBD, Claremont Quarter, Victoria Park and Mount Hawthorn.
DIJUN KLEAN: First Creditors' Meeting Set for Aug. 17
-----------------------------------------------------
A first meeting of the creditors in the proceedings of Dijun Klean
Pty Ltd will be held on Aug. 17, 2023, at 12:00 p.m. via virtual
conference facility.
Domenico Alessandro Calabretta and Mitchell Warren Ball of Mackay
Goodwin were appointed as administrators of the company on Aug. 7,
2023.
KALIUM LAKES: Founder Seeks Probe on NAIF Role in Collapse
----------------------------------------------------------
Australian Financial Review reports that the founding director of
failed potash company Kalium Lakes has asked market regulators to
probe the role a federal agency played in corporate collapse on
Aug. 4, which has put the recovery of more than AUD204.5 million of
Australian and German taxpayer funds in serious doubt.
According to AFR, former Kalium director Brent Smoothy has asked
the Australian Securities and Investments Commission (ASIC) to
investigate whether the Northern Australia Infrastructure Fund
(NAIF) acted as a "shadow director" during the two months leading
up to the collapse of the company into receivership.
AFR says NAIF and the German export finance agency KfW had
effectively kept Kalium alive over the past seven months by
pledging an extra AUD20 million of loans to give the company more
time to fix processing problems at its loss-making Beyondie
sulphate of potash project in Western Australia.
AFR relates that Kalium had drawn down AUD15 million of that extra
AUD20 million by June, but became insolvent on August 3 when NAIF
advised it would no longer make the remaining AUD5 million of debt
available.
Receivers from McGrathNicol are now working on a sale of the
Beyondie potash asset; a process that will be heavily informed by
the sale process Kalium ran over the past couple of months as it
tried to solve its cashflow problems, the report notes. A market
filing by Kalium on July 31 suggested it had drawn down more than
AUD83 million of loans from NAIF and more than AUD121.5 million of
loans from KfW for a total of AUD204.57 million.
Mr. Smoothy said he and other directors had asked NAIF and KfW to
convert their debt into Kalium shares as part of a plan to foster
Australia's nascent sulphate of potash industry.
But that proposal was rejected, and Mr. Smoothy said NAIF had used
its influence as Kalium's key financial backer to effectively force
directors to explore sale options over the past two months, AFR
relays.
"They were dangling the money and making us do things that we
necessarily didn't want to do, they were basically running the
company from the sideline," AFR quotes Mr. Smoothy as saying. "The
way they conducted it, I truly believe they were outside their
limits and I have put this into ASIC."
"I have written to them [ASIC] and I am going to write to all the
banking regulators, and I don't think they [NAIF] abided by the
rules. I believe they have acted as shadow directors and I believe
they have run a sales process which should have been run by an
administrator."
A NAIF spokesman said the agency had acted carefully and
appropriately, relays AFR.
"NAIF's further support and provision of additional liquidity at
Kalium's requests were carefully assessed by NAIF and the other
lender KfW and their advisors," he said.
"These issues were appropriately assessed by the lenders' advisors
to ensure that all parties could continue the staged process of
seeking to realise a positive outcome for Kalium and Australia's
sulphate of potash sector."
According to the report, Kalium is the second taxpayer-funded
sulphate of potash aspirant to collapse in less than two years,
after Salt Lake Potash went into administration in October 2021
while owing US$47 million (AUD71 million) of unpaid loans to the
federal government's Clean Energy Finance Corporation.
Salt Lake and Kalium were the frontrunners of a cottage industry
that planned to take Australia from zero to five sulphate of potash
operations in the four years to 2025 by extracting the potassium
rich groundwater from beneath ephemeral lakes in the outback, the
report states.
The NAIF, CEFC and Export Finance Australia collectively pledged
more than AUD900 million of loans to sulphate of potash aspirants
over the past five years, although most of those loans have never
been drawn down, AFR says.
The twin collapses of Kalium Lakes and Salt Lake Potash have
shredded investor confidence in the sector, which in 2020 attracted
more equity investment on the ASX than all other mineral sectors
apart from gold, according to data published by BDO.
About Kalium Lakes
Kalium Lakes Ltd. (ASX:KLL) -- http://www.kaliumlakes.com.au/-- is
an exploration and development company, which engages in the
exploration and evaluation of mineral resources.
Rob Brauer, Jason Preston and Rob Kirman of McGrathNicol were
appointed as Receivers and Managers of Kalium Lakes on Aug. 3,
2023.
The appointment of the Receivers followed the directors' decision
to appoint Martin Jones, Matthew Woods and Clint Joseph from KPMG
as voluntary administrators to Kalium Lakes also on Aug. 3, 2023.
The Receivers have assumed control of Kalium Lakes' operations
which will continue on a business as usual basis while an urgent
assessment of the options for the sale and/or recapitalisation of
the Group is undertaken.
MADDISON WRIGHT: Second Creditors' Meeting Set for Aug. 17
----------------------------------------------------------
A second meeting of creditors in the proceedings of Maddison Wright
Engineering Pty Ltd has been set for Aug. 17, 2023 at 2:00 p.m. via
Zoom virtual meeting.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Aug. 16, 2023 at 5:00 p.m.
Andrew MacNeill and Justin Howlett of SMB Advisory were appointed
as administrators of the company on July 13, 2023.
SOFC PTY: First Creditors' Meeting Set for Aug. 17
--------------------------------------------------
A first meeting of the creditors in the proceedings of SOFC Pty Ltd
will be held on Aug. 17, 2023, at 4:00 p.m. via virtual meeting.
Anthony Elkerton and Cameron Gray of DW Advisory were appointed as
administrators of the company on Aug. 7, 2023.
UFC GYM AUSTRALIA: Macarthur Franchise Goes Into Liquidation
------------------------------------------------------------
News.com.au reports that an independent franchise at a popular
Australian gym has collapsed into liquidation just a month after
the master franchisor appointed administrators.
In June, news.com.au exclusively reported that mixed martial arts
gym chain UFC Gym Australia had gone into administration after
becoming embroiled in a messy AUD5 million court case with several
disgruntled franchisee owners.
A court ordered UFC Gym Australia to pay AUD5.8 million to the
three franchisees, with the judge finding that the company and its
directors had "engaged in misleading and deceptive conduct" during
the process of selling said franchises to them. One of the
directors is appealing this.
News.com.au can now reveal that a Sydney franchise went into
liquidation just a few weeks later, though for unrelated reasons.
UFC Macarthur Square, based in Sydney's south west, went into
liquidation on July 11 and all employees were terminated three days
later, news.com.au discloses.
The company's registered business name was Elvis Sinosic
Enterprises Pty Ltd but it traded under the name UFC Macarthur
Square, with Sydneysider Elvis Sinosic its director.
At its peak, UFC Gym Australia had more than 10 fitness centres in
Sydney, Melbourne, Perth and the Gold Coast, according to
news.com.au.
However, the collapse of the Macarthur Square branch marks the
seventh gym to go under or leave the UFC Gym brand in the past six
months.
Ian Niccol of insolvency firm Aston Chace Group is the appointed
liquidator for UFC Macarthur Square, news.com.au reports.
A document he lodged with ASIC shows that the business has debts of
AUD1.2 million, but that included a substantial debt to the
director, Mr. Sinosic, the report discloses. The documents show the
director is owed AUD1 million for the money he poured into the now
defunct business venture.
It's understood the company's landlord and the tax office are also
owed money. Other creditors are owed AUD356,000, AUD231,000 and
AUD166,000.
Mr. Sinosic told news.com.au that his company went under "as a
direct result of the government's mishandling of Covid over the
last couple of years and their lack of any support for small
businesses".
His gym was plagued with bad luck. Mr. Sinosic took on the
Campbelltown location in 2019 and was supposed to launch in March
2020 - the same month Covid-19 arrived on Australia's shores.
He said the master franchisor of UFC Gym Australia going into
administration also led to a "lack of customer confidence" in the
brand, news.com.au relays.
According to the report, the liquidator said the tax office issued
a penalty notice against Mr. Sinosic over an unpaid tax debt.
This meant if he hadn't placed the company into liquidation, he
would have been personally liable for the unpaid tax.
Mr. Sinosic himself is a retired Australian professional mixed
martial artist.
There was AUD39,000 cash left in the gym's bank account when Mr.
Niccol took over its finances, news.com.au notes.
News.com.au relates that a UFC Gym Australia spokesperson said the
former franchisee and the franchisor together agreed for him to
relinquish the Macarthur franchise. It has since been taken back by
head office.
"The franchisor continues to operate the MacArthur gym
uninterrupted and customers have experienced uninterrupted service
levels throughout," the spokesperson added.
URBAN METRO: Second Creditors' Meeting Set for Aug. 17
------------------------------------------------------
A second meeting of creditors in the proceedings of Urban Metro
Civil Pty Ltd has been set for Aug. 17, 2023 at 10:30 a.m. at the
offices of Jirsch Sutherland at Level 30, 140 William Street in
Melbourne and via Zoom.
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 Aug. 16, 2023 at 11:00 a.m.
Glenn Anthony Crisp of Jirsch Sutherland was appointed as
administrator of the company on July 13, 2023.
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C H I N A
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COUNTRY GARDEN: Moody's Cuts CFR to Caa1 & Unsecured Debt to Caa2
-----------------------------------------------------------------
Moody's Investors Service has downgraded Country Garden Holdings
Company Limited's corporate family rating to Caa1 from B1 and its
senior unsecured rating to Caa2 from B1.
The rating outlook remains negative.
"The downgrade reflects Country Garden's heightened liquidity and
refinancing risks in view of its deteriorated liquidity and
financial flexibility, sizable refinancing needs and
still-constrained access to funding," says Kaven Tsang, a Moody's
Senior Vice President.
"The negative outlook reflects the uncertainty over Country
Garden's ability to service its debt obligations, including coupon
payments, in a timely manner over the next 6-12 months," adds
Tsang.
RATINGS RATIONALE
Moody's has changed its assessment on Country Garden's liquidity to
weak from adequate over the next 12-18 months, in the absence of
new external financing. This change is based on the rating agency's
lower forecast of Country Garden's contracted sales over the next
12-18 months amid rising market concerns over the company's
liquidity and financial health. The company's weakened liquidity
would also restrain its financial flexibility in deploying its
internal resources for debt servicing.
There were news reports that Country Garden has missed coupon
payments for two USD bonds due on August 6. While the company has a
30-day grace period to remediate the coupon payments, this
development reflects the company's weak liquidity and constrained
financial flexibility. This development would also further dampen
market confidence and impair its access to funding.
Country Garden's governance risk exposure is reflected in its weak
liquidity and financial management as well as management
credibility, in view of its failure to pay the coupon payments of
its USD bonds on time.
Country Garden reported that it had unrestricted cash of RMB128
billion, including escrow cash of RMB41 billion, as of December
2022. But contrary to Moody's previous expectations, the company's
ability to mobilize these resources in a timely manner for debt
servicing, in particular its offshore debt, is highly uncertain.
Specifically, Country Garden will have around RMB17 billion of
onshore bonds and around RMB14 billion of offshore bonds due or
becoming puttable through the end of 2024.
Moody's has reduced its forecast for Country Garden's contracted
sales to around RMB180 billion in 2023, from RMB210 billion
previously, because of increased market concerns over the company's
liquidity and financial positions. The contracted sales could
decline further in 2024 if the company is unable to improve its
financial position and restore market confidence. The company's
monthly contracted sales decreased 60% to RMB12 billion in July
2023 after falling 30% to RMB128.8 billion over the first half of
the year.
The lower contracted sales amount will in turn further suppress the
company's operating cash flow, future revenue recognition and
profitability.
As a result, Moody's expects Country Garden's credit metrics to
weaken over the next 12-18 months, with its EBIT/interest coverage
falling to 1.5x-2.0x from 3.1x in 2022. Its debt/EBITDA will also
rise above 9.0x from 5.4x over the same period.
Country Garden's senior unsecured bond rating has been downgraded
to Caa2, which is one notch below the CFR, because of increased
risk of subordination, as the company's shrinking sales and
operations will reduce the benefit of credit diversification that
Moody's had considered as a mitigant to structural subordination.
This subordination risk also reflects the fact that most of Country
Garden's claims are at the operating subsidiaries and have priority
over claims at the holding company in a bankruptcy scenario. In
addition, the holding company lacks significant mitigating factors
for structural subordination.
The company is also likely to increase its reliance on secured debt
because of the deterioration in its credit quality. As a result,
the expected recovery rate for senior unsecured claims at the
holding company will be lower.
In terms of environmental, social and governance (ESG) factors,
Country Garden's Credit Impact Scores of CIS-5 reflects the impact
of ESG attributes, especially governance risk, on its ratings.
Moody's has also considered the company's concentrated ownership by
its key shareholder, Yang Huiyan, who held a 52.6% stake in the
company as of the end of July 2023. The concentrated shareholder
ownership indicates that influence from the largest shareholder
could materially change its financial policy and strategy, despite
the largest shareholder's history of providing funding support to
the company.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade of Country Garden's ratings is unlikely over the next 12
months, given the negative outlook.
However, positive rating momentum could emerge if Country Garden
improves its contracted sales, liquidity and access to funding; and
pays its debt obligations in a timely manner without sacrificing
its balance sheet liquidity.
On the other hand, Moody's could downgrade Country Garden's ratings
if the company is unable to service the coupon payment within the
grace period, defaults on its debt, or its access to funding or
liquidity deteriorates further, in turn further weakening the
recovery prospects of its creditors.
The principal methodology used in these ratings was Homebuilding
and Property Development published in October 2022.
Country Garden Holdings Company Limited, founded in 1992 and listed
on the Hong Kong Stock Exchange, is a leading Chinese integrated
property developer. As of the end of 2022, the company had an
attributable land bank of 201.5 million square meters (sqm) by
gross floor area (GFA), spanning across different cities in China.
COUNTRY GARDEN: Said to Start Debt Restructuring Soon
-----------------------------------------------------
Yicai Global reports that shares in Country Garden Holdings plunged
as much as 14.4 percent on Aug. 11 after a source from a research
institution said that the struggling Chinese property developer
might begin debt renegotiations soon.
Country Garden's share price [HKG:2007] was trading down 7.6
percent at HKD0.96 (USD0.12) as of 1.45 p.m. China time on Aug. 11.
Earlier in the day it sank to HKD0.89.
Country Garden has hired China International Capital as its
financial advisor to lead the restructuring, the source told Yicai
Global.
According to the report, Country Garden is in the midst of a
liquidity crisis and earlier last week defaulted on the interest
payments of two US dollar bonds. There have also been rumors that a
local government team had been sent to the company's headquarters
to ask for a list of marketable assets, but Country Garden later
refuted the rumors.
However the developer has admitted that it is in trouble, the
report says. Country Garden is encountering the biggest
difficulties since its establishment, the Foshan, southern
Guangdong province-based firm said Aug. 10. It is bracing for net
losses of between CNY45 billion (USD6.2 billion) and CNY55 billion
in the first half, it added.
Country Garden underestimated the depth, intensity and length of
the market downturn, it said. It had insufficient insight into the
significant shifts in supply and demand in the real estate market.
It did not have a full understanding of potential risks such as
excessive investment in small cities and its actions to reduce its
debt ratio and other mitigating measures were not quick enough and
ineffective.
According to the report, China's real estate market has been
sluggish since 2021 and the financing environment has worsened.
This, combined with tighter regulation, has caused Country Garden
to have less available funds and to come under cash flow pressure,
a company insider said earlier.
The developer has managed to reduce its debts by nearly CNY100
billion (USD13.8 billion) since 2020, but it still has over CNY10
billion of debt due from next month to early 2024, Yicai Global
notes.
Country Garden is likely to get through this difficult time by
re-organizing its debt, given its good financial fundamentals and
low leverage levels, a source close to the developer said, adds
Yicai Global.
About Country Garden
Country Garden Holdings Company Limited is an investment holding
company principally engaged in the sales of properties. The Company
operates its business through five segments: Property Development
segment, Construction Fitting and Decoration segment, Property
Investment segment, Property Management segment and Hotel Operation
segment. The Company's subsidiaries include Wuhan Country Garden
Lianfa Investment Co., Ltd, Jurong Country Garden Property
Development Co., Ltd and Chuzhou Country Garden Property
Development Co., Ltd.
As recently reported in the Troubled Company Reporter-Asia Pacific,
Moody's Investors Service has downgraded Country Garden Holdings
Company Limited's corporate family rating and senior unsecured
rating to B1 from Ba3. The rating outlook remains negative.
COUNTRY GLOBAL: Expects to Report Record First-Half Loss
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Caixin Global reports that Country Garden Holdings Co. Ltd., one of
China's largest property developers, said it expects to report a
record, multibillion-dollar net loss for the first half, raising
further concerns as the company slides deeper into a debt crisis.
Guangdong-based Country Garden estimated its net loss at CNY45
billion to CNY55 billion (US$6.2 billion to US$7.6 billion) for the
first six months of 2023, compared with a net profit of CNY1.91
billion a year ago, Caixin discloses citing a Hong Kong exchange
filing late on Aug. 10. The company warned July 31 that it would
report red ink for the first half.
About Country Garden
Country Garden Holdings Company Limited is an investment holding
company principally engaged in the sales of properties. The Company
operates its business through five segments: Property Development
segment, Construction Fitting and Decoration segment, Property
Investment segment, Property Management segment and Hotel Operation
segment. The Company's subsidiaries include Wuhan Country Garden
Lianfa Investment Co., Ltd, Jurong Country Garden Property
Development Co., Ltd and Chuzhou Country Garden Property
Development Co., Ltd.
As recently reported in the Troubled Company Reporter-Asia Pacific,
Moody's Investors Service has downgraded Country Garden Holdings
Company Limited's corporate family rating and senior unsecured
rating to B1 from Ba3. The rating outlook remains negative.
DALIAN WANDA: Officials Probed by Police Amid Anti-Graft Campaign
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Bloomberg News reports that an anti-corruption investigation by
Dalian Wanda Group Co. led to three of the firm's executives being
taken away by police, according to people briefed on the matter.
Liu Haibo, senior vice president of Wanda Group, and two other
unnamed managers were investigated, the people said, who asked not
to be identified speaking about private matters, Bloomberg relays.
Wanda held an internal meeting on Aug. 3 to announce the matter,
they said. The amount involved is more than CNY100 million ($13.9
million), said one of the people.
A report earlier last week by the state-owned outlet The Paper of
Liu being taken into custody by police had prompted speculation
there was a government probe of Wanda, Bloomberg says. That isn't
the case and uncovering of possible misconduct was the result of an
internal investigation by Wanda, the people said.
Bloomberg notes that the development occurred at a critical time
for Wanda, which has experienced unprecedented volatility in credit
markets recently. The conglomerate is one of the few Chinese
junk-rated developers to have avoided defaulting on public
dollar-debt.
Liu has been at Wanda for more than a decade, working as vice
president in its former commercial properties unit, and later as a
senior vice president at its headquarters, Bloomberg discloses
citing various statements on the company website. He was still at
the firm as of July 25, when he accompanied chairman Wang Jianlin
on a business trip to meet city officials in central Henan
province, according to a company statement.
About Dalian Wanda
Dalian Wanda Commercial Management Group Co., Ltd. operates as a
commercial property developer, owner, and operator. The Company
develops and manages mixed-use property projects including retail,
office, hotel, residential, restaurant, entertainment, and other
projects. Dalian Wanda Commercial Management Group conducts
businesses in China.
As reported in the Troubled Company Reporter-Asia Pacific on July
10, 2023, Moody's Investors Service downgraded Dalian Wanda
Commercial Management Group Co., Ltd.'s (DWCM) corporate family
rating to B1 from Ba2. Moody's also downgraded Wanda Commercial
Properties (HK) Co. Limited's (Wanda HK) CFR to B3 from B1. The
senior unsecured ratings on the bonds issued by Wanda Properties
Global Co. Limited, Wanda Properties Overseas Limited and Wanda
Properties International Co. Limited to B3 from B1.
Wanda Properties Global, Wanda Properties Overseas and Wanda
Properties International are wholly owned subsidiaries of Wanda HK.
The rated bonds are guaranteed by Wanda HK and supported by deeds
of equity interest, purchase undertakings and keepwell deeds
between DWCM, Wanda HK and the bond trustee.
Moody's has also changed the rating outlook on DWCM and its
subsidiaries to negative from ratings under review. This concludes
the rating review initiated on May 5, 2023.
GUANGZHOU FINELAND: Moody's Withdraws 'Ca' Corporate Family Rating
------------------------------------------------------------------
Moody's Investors Service has withdrawn the Ca corporate family
rating of Guangzhou Fineland Real Estate Development Co., Ltd.
Prior to the withdrawal, the rating outlook on Fineland was
negative.
RATINGS RATIONALE
Moody's has decided to withdraw the rating for its own business
reasons.
COMPANY PROFILE
Founded in 1995, Guangzhou Fineland Real Estate Development Co.,
Ltd. is a property developer based in Guangdong province and
targets mid to high-end customers.
ZHONGRONG INT'L: Fails to Pay Out Maturing Products, Clients Say
----------------------------------------------------------------
Caixin Global reports that two clients of Zhongrong International
Trust Co. Ltd. announced that the Chinese financial institution has
failed to repay maturing trust products they had purchased,
following online rumors linking the failure to its embattled
shareholder, investment giant Zhongzhi Enterprise Group Co. Ltd.
Nacity Property Service Co. Ltd. said it had invested CNY30 million
(US$4.1 million) in a trust product sold by Zhongrong, but has not
received any principal or earnings after the product matured
earlier last week, according to a filing with the Shanghai Stock
Exchange on Aug. 11. The property manager noted the risk of not
being able to recoup all the money.
As reported in the Troubled Company Reporter-Asia Pacific in early
June 2023, S&P Global Ratings withdrew its 'BB+/B' issuer credit
rating on Zhongrong International Trust Co. Ltd. (Zhongrong Trust)
and 'BB-/B' issuer credit rating on Zhongrong Trust's subsidiary,
Zhongrong International Holdings Ltd. (ZRH), at the company's
request.
At the time of withdrawal, the outlook on the long-term issuer
credit rating on Zhongrong Trust was stable. This reflected S&P's
expectation that the China-based trust company will maintain its
good market position and low leverage over the next 12-24 months.
The ratings further reflect its contingent liabilities from
implicit support of trust products.
The outlook on the long-term issuer credit rating on ZRH was
negative at the time of withdrawal. This reflected S&P's
expectation of heightened investment risk and persistently weak
liquidity for the company, and the possibility that its strategic
link with its parent could weaken further.
=========
I N D I A
=========
A. GEERI: CRISIL Hikes Rating on INR20cr Loan to B-
---------------------------------------------------
CRISIL Ratings has upgraded its ratings on the long-term bank
facilities of A. Geeri Pai Gold And Diamonds (AGPGD) to 'CRISIL
B-/Stable' from 'CRISIL D'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 20 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
Long Term Loan 2.87 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
Long Term Loan 0.78 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
Long Term Loan 4.81 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
Long Term Loan 4.80 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
Working Capital 3.00 CRISIL B-/Stable (Upgraded
Demand Loan from 'CRISIL D')
The rating action reflects the track record of timely servicing of
principal and interest obligations on bank debt from the months of
April to July 2023. Timely and continued support from promoters
will continue to support the liquidity profile.
The rating reflects modest scale of operations, large working
capital requirement and below average financial risk profile. These
weaknesses are partially offset by the extensive experience of the
partners in jewelry industry.
Analytical Approach
Unsecured loan of INR4.26 crore on March 31, 2023, from the
partners has been treated as neither debt nor equity as the loan is
likely to be retained in the business over the medium term.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations amid intense competition: Intense
competition constrains scalability pricing flexibility and
profitability. Revenues moderated to an estimated INR28-29 crore in
fiscal 2023, in comparison to INR31.86 crore a year ago, with
subdued demand due to market conditions and rise in commodity
prices. With operations expected to get regularized in fiscal 2024,
revenues are expected to improve, however will continue to remain
modest due to minimal number of showrooms.
* Large working capital requirement: Gross current assets were
large at 500-550 days as on March 31, 2023, led by sizeable
inventory of over 600 days. The firm needs to maintain large
inventory of jewellery of various designs for display purposes.
Working capital requirement will remain large over the medium
term.
* Below average financial risk profile: While the financial risk
profile has improved in fiscal 2023 and 2022 on regular equity
infusions of INR3 crore in each fiscal from the promoters, it
continues to remain below average. Networth is estimated at around
INR13-14 crores as on March 31,2023. Capital structure is
aggressive as reflected in estimated total outside liabilities to
adjusted networth (TOLANW) ratio and gearing of 3.1-3.2 times and
2.7-2.8 times as on March 31, 2023; primarily driven by modest
networth and high reliance on external debt. Debt protection
metrics were subdued, reflected in estimated interest coverage and
net cash accruals to adjusted debt ratios of 1.2-1.4 times and
0.03-0.5 times, in fiscal 2023. While regular equity infusions are
expected to support financial risk profile, it will continue to
remain below average over the medium term due to modest networth
and high reliance on outside borrowings.
Strength:
* Extensive experience of the partners and healthy relationships
with customers: The four-decade-long experience of the partners and
their healthy relationships with suppliers and key customers will
continue to help the firm successfully navigate business cycles in
the jewelry industry.
Liquidity: Poor
Cash accrual is expected to be INR0.9-1.1 crores for fiscals 2024
and 2025, against debt obligation of INR4.3 crore and INR5-5.5
crore, respectively. Average utilisation of fund-based limit of
INR20 crore was fully utilized during the 12 months through June
2023. Fund-based support from partners in the form of unsecured
loans and equity infusion provide additional support to liquidity.
Outlook: Stable
CRISIL Ratings believes that AGPGD will continue to benefit from
the extensive experience of the promoters.
Rating Sensitivity factors
Upward factors:
* Steady growth in revenue and stable operating margin leading to
higher cash accrual
* Cushion between repayment obligations to net cash accruals above
1 time
Downward factors:
* Sharp decline in revenue by 20% or operating margin leading to
lower than expected net cash accruals thus deteriorating the
liquidity
* Stretch in the working capital cycle leading to further weakening
of financial risk profile and liquidity
AGPGD was set up in 1980 as a partnership firm of Mr. Sachithananda
S Pai, Ms Sheela S Pai, Mr. Ramesh S Pai and Mr. Vishnunarayana S
Pai. It retails jewellery through its showroom in Palarivattom,
Kerala.
ASHOK KUMAR: Ind-Ra Affirms B+ LT Issuer Rating, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Ashok Kumar
Chhabra Constructions Private Limited's (AKCCPL) Long-Term Issuer
Rating at 'IND B+'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR5 mil. Fund-based limit affirmed with IND B+/Stable/IND A4
rating;
-- INR45 mil. Proposed fund-based limit affirmed with IND B+/
Stable/IND A4 rating; and
-- INR50 mil. Non-fund-based limit affirmed with IND A4 rating.
Key Rating Drivers
The affirmation reflects AKCCPL's continued small scale of
operations, as indicated by revenue of INR135.70 million in FY23
(provisional numbers) (FY22: INR353.91 million). The revenue
declined in FY23 as the Uttar Pradesh government did not float any
new tenders during the year. AKCCPL had an outstanding order book
of INR95 million as of July 15, 2023, to be executed by September
2023. In 3MFY24, AKCCPL achieved a revenue of INR40 million. In
FY24, Ind-Ra expects revenue to be stable on a yoy basis due to the
absence of any major orders in hand.
Liquidity Indicator - Stretched: AKCCPL does not have any capital
market exposure and relies on a single bank to meet its funding
requirements. The net working capital cycle stretched to 23 days in
FY23 (FY22: negative 11 days) due to a fall in creditor days to 22
days (29 days). AKCCPL's average maximum utilization of the
fund-based limits was 13% and that of the non-fund-based limits was
36% during the 12 months ended June 2023. AKCCPL plans to borrow a
working capital fund of INR45 million for its day-to-day
operations. The cash flow from operations increased to INR7.5
million in FY23 (FY22: INR5.66 million), due to an increase in the
operating EBITDA. The free cash flow increased to INR4.89 million
in FY23 (FY22: INR2.66 million). The cash and cash equivalents
stood at INR28.24 million at FYE23 (FYE22: INR28.84 million),
against debt repayment of INR2.8 million in FY24.
The ratings, however, are supported by AKCCPL's healthy EBITDA
margins. The margin improved to 21.95% in FY23 (FY22: 5.84%) owing
to the receipt of higher-margin orders through tenders. The ROCE
was 26.2% in FY23 (FY22: 13.9%). Ind-Ra expects the EBITDA margin
to be stable on yoy basis in FY24, given the absence of any change
in the cost structure.
The ratings also reflect AKCCPL's comfortable credit metrics due to
the healthy margins. The company remained net cash positive in
FY23. The interest coverage (operating EBITDA/gross interest
expenses) improved to 24.83x in FY23 (FY22: 9.22x) due to an
increase in the absolute EBITDA to INR29.79 million (INR20.66
million). In FY24, Ind-Ra expects the credit metrics to remain at
similar levels due to the absence of any debt-led capex plans.
The ratings are further supported by the promoters' experience of
nearly 22 years in the construction industry, which has led to
strong relationships with customers as well as suppliers.
Rating Sensitivities
Negative: A decline in the scale of operations, leading to
deterioration in the overall credit metrics, with the interest
coverage reducing below 1.7x, and deterioration in the liquidity
profile, could lead to a negative rating action.
Positive: Improved revenue visibility while maintaining the credit
metrics could lead to a positive rating action.
Company Profile
AKCCPL, incorporated in 2000, executes road construction projects
for municipal and development authorities, and the Public Works
Departments of Uttar Pradesh. Sachin Chhabra and his brother,
Khitij Chhabra, are the promoters.
BL KASHYAP: CRISIL Hikes Rating on INR55cr Cash Loan to B-
----------------------------------------------------------
CRISIL Ratings has upgraded its ratings on the bank loan facilities
of BL Kashyap and Sons Limited (BLK) to 'CRISIL B-/Stable/CRISIL
A4' from 'CRISIL D/CRISIL D'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 44.71 Withdrawn
Bank Guarantee 7.19 CRISIL A4 (Upgraded from
'CRISIL D')
Bank Guarantee 16.88 CRISIL A4 (Upgraded from
'CRISIL D')
Bank Guarantee 3.46 CRISIL A4 (Upgraded from
'CRISIL D')
Bank Guarantee 23.9 CRISIL A4 (Upgraded from
'CRISIL D')
Bank Guarantee 87.68 CRISIL A4 (Upgraded from
'CRISIL D')
Bank Guarantee 130 CRISIL A4 (Upgraded from
'CRISIL D')
Cash Credit 21.2 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
Cash Credit 26.03 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
Cash Credit 31.8 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
Cash Credit 40 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
Cash Credit 55 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
Cash Credit 14.48 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
Proposed Long Term
Bank Loan Facility 40.95 Withdrawn
Working Capital 21.72 CRISIL B-/Stable (Upgraded
Demand Loan from 'CRISIL D')
Working Capital 40 CRISIL B-/Stable (Upgraded
Demand Loan from 'CRISIL D')
Working Capital 20 CRISIL B-/Stable (Upgraded
Demand Loan from 'CRISIL D')
CRISIL Ratings has also withdrawn its rating on INR85.66 crore bank
loan facilities of BLK, at the company's request and on receipt of
'No Due Certificate/revised sanction letters' from lender(s). The
withdrawal is in line with CRISIL Ratings' withdrawal policy.
The upgrade in the ratings reflects timely servicing of debt
obligations for a period of more than 90 days.
The ratings continue to reflect BLK's susceptibility to cyclicality
in the commercial real estate segment, its limited revenue
diversity and modest liquidity position as reflected in high
working capital utilisation. These rating weaknesses are partially
offset by BLK's established position in the construction industry.
Analytical Approach
For arriving at its ratings, CRISIL Ratings has combined the
business and financial risk profiles of BLK and its subsidiaries,
BLK Lifestyle Ltd, Security Information Systems (India) Ltd, BLK
Infrastructure Ltd, and Soul Space Pvt Ltd (SSPL). SSPL is BLK's
real estate arm, and the other subsidiaries provide related
services. All the companies are together referred to as the BLK
group.
Key Rating Drivers & Detailed Description
Weakness:
* Modest Financial Risk Profile: The liquidity position of the
group is stretched as reflected in instances of over-utilisation of
working capital facilities. Financial risk profile is constrained
by large working capital requirement. The interest coverage ratio
over the years has also remained modest.
Strength:
* Long Vintage: The promoters of the company have a long vintage of
more than three decades in the industry
Liquidity: Stretched
Liquidity is stretched as reflected in average bank loan
utilisation of more than 80%.
Outlook: Stable
CRISIL Ratings believes BLK will continue to benefit from its
established market position and experienced promoters.
Rating Sensitivity Factors
Upward factors
* Significant and sustained improvement in liquidity along with
improvement in interest coverage
* Sustenance of revenue and operating margins above 9-10% leading
to higher net cash accruals
Downward factors
* Worsening of liquidity position and deterioration in interest
coverage ratio
* Operating margin declining below 6% weakening net cash accruals
BLK was established in 1989 by Mr. Vinod Kashyap, Mr. Vineet
Kashyap, and Mr. Vikram Kashyap. The company was reconstituted as a
public limited company with the current name in 1995. The promoters
have been active in the real estate sector since 1978; they
transferred their business to BLK after it was formed.
BLK provides construction services to customers in the commercial,
residential, and industrial segments. The company has also ventured
into real estate development and related services, such as
furnishing. It has partly restructured its debt under a corporate
debt structuring package, which was approved under statutory
guidelines then on December 31, 2014.
As per the audited financial statements of fiscal 2023, operating
income was INR1110 crore and PAT was INR22 crore, against INR1158
crore and loss of INR44 crore respectively for the previous
fiscal.
BOXOVIA PRIVATE: Ind-Ra Moves BB- Issuer Rating to NonCooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Boxovia Private
Limited's (BPL) Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating action is:
-- INR850 mil. Term loan due on March 2029 migrated to non-
cooperating category with IND BB- (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The issuer did not co-operate; based
on best available information
The ratings were last reviewed on June 20, 2022. Ind-Ra is unable
to provide an update, as the agency does not have adequate
information to review the ratings.
Company Profile
Incorporated in December 2017, Boxovia manufactures corrugated
boxes and boards at its facility located in Ahmednagar
(Maharashtra). It has an annual installed capacity of 72,000 metric
tons.
CALICO TRENDS: CRISIL Withdraws B Rating on INR8cr Loan
-------------------------------------------------------
CRISIL Ratings has withdrawn its ratings on the bank facilities of
Calico Trends (CT) on the request of the company and receipt of a
no objection certificate from its bank. The rating action is in
line with CRISIL Ratings' policy on withdrawal of its ratings on
bank loans.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Export Packing 8 CRISIL B/Stable/Issuer Not
Credit Cooperating (Withdrawn)
Foreign Bill 3 CRISIL B/Stable/Issuer Not
Purchase Cooperating (Withdrawn)
Letter of Credit 3 CRISIL A4/Issuer Not
Cooperating (Withdrawn)
Proposed Long Term 7 CRISIL B/Stable/Issuer Not
Bank Loan Facility Cooperating (Withdrawn)
Standby Line 1 CRISIL B/Stable/Issuer Not
of Credit Cooperating (Withdrawn)
CRISIL Ratings has been consistently following up with CT for
obtaining information through letters and emails dated March 25,
2023, among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of CT. This restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on CT is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the rating on bank facilities of CT
continues to be 'CRISIL B/Stable/CRISIL A4 Issuer Not
Cooperating'.
Calico was set up in 1996 by two brothers, Mr. Mohammad Ajmal and
Mr. Ahmad Ahsan, and their sons, Mr. Rehan Ajmal, Mr. Farhan Ajmal,
and Mr. Shahab Ahmad. The family has been in the leather business
since 1960, when Mr. Mohammad Ajmal's father founded New Light
Tannery Pvt Ltd; other members joined the business later. Calico's
leather tanning business includes manufacturing of finished
leather, shoe uppers (safety shoes), leather splits, and leather
upholstery. In 2012-13, Calico started manufacturing complete
footwear.
CITIES INNOVATIVE: CRISIL Cuts Rating on INR6.5cr Loan to D
-----------------------------------------------------------
CRISIL Ratings has downgraded its ratings on the bank facilities of
Cities Innovative Biofuels Private Limited to 'CRISIL D' from
'CRISIL BB-/Stable'. The downgrade reflects instances of delays in
interest portion of term loan repayment obligations for month of
June 2023.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Rupee Term Loan 6.5 CRISIL D (Downgraded from
'CRISIL BB-/Stable')
The rating reflects delays in debt repayment obligations and its
below average financial risk profile. These weaknesses are
partially offset by the extensive industry experience of the
promoter and adoption of latest machinery in a growing industry.
Key Rating Drivers & Detailed Description
Weaknesses:
* Instances of delays in reservicing debt obligations for term
loan: The company has had delays in reservicing its term debt
obligations for the month of June 2023.
* Below-average financial risk profile: The financial risk profile
is moderate, marked by modest networth and total outside
liabilities to tangible networth of INR6.49 crore and 1.87 times,
as on 31 March 2023. The debt protection metrics are below average
marked by an interest cover of -0.28 time in fiscal 2023.
Strengths:
* Extensive industry experience of the promoter: The promoter has
experience of more than 10 years in sustainable agriculture,
environmental services, and biogas industries. This has given him a
strong understanding of the market dynamics and helped him to
establish healthy relationships with suppliers and customers, which
will continue to support the business risk profile
* Adoption of latest machinery in a growing industry: The company
has set up a new unit for generation of Bio-CNG (compressed natural
gas). The unit will have the latest equipment and technology for
solid-state anaerobic digestion technique for generating biogas,
which will also be environment friendly. For this technology, it
has already collaborated with a Swiss company. The company is
offering a unique dry digestion technology for bio-CNG production
in India. There are few original technology providers in the
bio-CNG industry in India and CIBPL is one of them. The adoption of
latest machinery in a growing industry will support the business
risk profile.
Liquidity: Poor
The company has instances of delays in interest portion of term
loan repayment obligations for the month of June 2023. The
company's fund based cash credit facilities had utilization of 88%
in 12 months ending June 2023 with full utilization in multiple
months.
Rating Sensitivity factors
Upward factor
* Timely honouring of debt obligations for continuous 3 months
* Timely ramp up of scale of operations leading to healthy cash
accruals
Incorporated in 2018, CIBPL is promoted by Mr Gurjot Singh. The
company is working on the development of new technologies that can
use India's large biomass resource to produce fuels. It has set up
a unit to produce biogas, which is purified to Bio-CNG and compost
in Fatehgarh Sahib, Punjab.
CONVICTION HR: CRISIL Moves B+ CCR to Not Cooperating Category
--------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of
Conviction Hr Private Limited (CHPL; part of the Conviction group)
to 'CRISIL B+/Stable Issuer Not Cooperating'
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Corporate Credit - CRISIL B+/Stable (ISSUER NOT
Rating COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with CHPL for
obtaining NDS through letters/emails dated May 31, 2023, June 30,
2023 and July 31, 2023 among others, apart from telephonic
communication to seek the same. After non-receipt of NDS for 2
consecutive months, we also sent a letter dated July 24, 2023
reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of CHPL to confirm timely debt servicing during
these months, but awaits any feedback.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive NDSs from CHPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on CHPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the rating on bank facilities of CHPL
migrated to 'CRISIL B+/Stable Issuer Not Cooperating'
CRISIL Ratings has combined the business and financial risk
profiles of CHPL, Conviction, Conviction Global Limited (U.K.),
Conviction Global LLC - FZ (U.A.E.). All the companies,
collectively referred to as the Conviction group, operate in
similar businesses, have a common management team, and have
significant operational linkages.
It is engaged in providing human resource solutions such as
temporary staffing, permanent recruitments, consultancy and
management services, payroll process outsourcing, training and
assessments. The company has headquartered in Mumbai and various
branch offices located in Pune, Ahmedabad & Bengaluru. Also
established a global footprint in Dubai and London. Conviction
group is promoted by Mr. Rajesh Mudhliar.
DANU WIND: Ind-Ra Keeps D Term Loan Rating in Non-Cooperating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Danu Wind Parks
Private Limited's term loan 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
D (ISSUER NOT COOPERATING)' on the agency's website.
The detailed rating action is:
-- INR2,676.3 bil. Term loan due on March 31, 2034 maintained in
non-cooperating category with IND D (ISSUER NOT COOPERATING)
rating.
Note: Issuer Not Cooperating: The rating was last reviewed on May
6, 2020. Ind-Ra is unable to provide an update, as the agency does
not have adequate information to review the rating.
Company Profile
Danu Wind Parks was formed in 2011 to build and operate wind power
plant in Kurnool, Andhra Pradesh.
DESEIN PRIVATE: CRISIL Moves B+ Debt Ratings to Not Cooperating
---------------------------------------------------------------
CRISIL Ratings has migrated the ratings on bank facilities of
Desein Private Limited (DPL) to 'CRISIL B+/Stable/CRISIL A4 Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 7.8 CRISIL A4 (ISSUER NOT
COOPERATING; Rating Migrated)
Cash Credit 2.75 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Fund-
Based Bank Limits 7.45 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with DPL for
obtaining NDS through letters/emails dated May 31, 2023, June 30,
2023 and July 31, 2023 among others, apart from telephonic
communication to seek the same. After non-receipt of NDS for 2
consecutive months, we also sent a letter dated July 24, 2023
reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of DPL to confirm timely debt servicing during
these months, but awaits any feedback.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive NDSs from DPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on DPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of DPL
migrated to 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating'
DPL was founded in 1970 by Late Mr O P Gupta. The company provides
engineering consultancy services for coal/lignite/diesel and
gas-based combined cycle power plants with unit sizes ranging up to
800 MW, both in India and overseas. It is based in New Delhi and
currently owned and managed by Ms Nidhi Gupta.
DUTTA AGRO: CRISIL Moves B- Debt Ratings to Not Cooperating
-----------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of Dutta
Agro Plantations Private Limited (DUAPPL) to 'CRISIL B-/Stable
Issuer Not Cooperating'
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 5.25 CRISIL B-/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Long Term Loan 3.55 CRISIL B-/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Long Term Loan 2.5 CRISIL B-/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Cash 3.0 CRISIL B-/Stable (ISSUER NOT
Credit Limit COOPERATING; Rating Migrated)
Proposed Term Loan 0.7 CRISIL B-/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with DUAPPL for
obtaining NDS through letters/emails dated May 31, 2023, June 30,
2023 and July 31, 2023 among others, apart from telephonic
communication to seek the same. After non-receipt of NDS for 2
consecutive months, we also sent a letter dated July 24, 2023
reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of DUAPPL to confirm timely debt servicing
during these months, but awaits any feedback.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive NDSs from DUAPPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on DUAPPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the rating on bank facilities of DUAPPL
migrated to 'CRISIL B-/Stable Issuer Not Cooperating'
DUAPPL, incorporated in October 1988, is engaged in tea
manufacturing business. The company was trading in tea leaves till
October 2016 through its three owned tea estates in Jalpaiguri
(West Bengal), having total tea area of 200 acres.
ELYSIUM PHARMACEUTICALS: Ind-Ra Moves BB+ Rating in NonCooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Elysium
Pharmaceuticals Limited's Long-Term Issuer Rating to the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR293 mil. Term loan due on June 2024 migrated to non-
cooperating category with IND BB+ (ISSUER NOT COOPERATING)
rating;
-- INR710 mil. Fund-based working capital limits migrated to non-
cooperating category with IND BB+ (ISSUER NOT
COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating; and
-- INR40.1 mil. Non-fund-based working capital limits migrated to
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not co-operate, based on
best available information.
The ratings were last reviewed on June 29, 2022. Ind-Ra is unable
to provide an update, as the agency does not have adequate
information to review the ratings.
Company Profile
Incorporated in 1995 by Yashwant Patel, Elysium Pharmaceuticals
manufactures sterile formulations such as liquid and dry parenteral
and non-sterile formulations such as tablets, capsules, liquid
orals, ointment and dry syrups under third-party and contract
manufacturing agreements for established pharmaceutical firms. The
company is based out of Dabhasa, 19km from Vadodara, Gujarat. It
commenced commercial operations in 1997.
FUTURE MOBILE: CRISIL Withdraws B+ Rating on INR75cr Cash Loan
--------------------------------------------------------------
CRISIL Ratings has withdrawn its rating on the bank facilities of
FML on the request of the company and after receiving no objection
certificate from the bank. The rating action is in-line with CRISIL
Rating's policy on withdrawal of its rating on bank loan
facilities.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 75 CRISIL B+/Stable/Issuer Not
Cooperating (Withdrawn)
CRISIL Ratings has been consistently following up with FML for
obtaining information through letters and emails dated July 12,
2022 and September 14, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of FML. This restricts CRISIL
Ratings' ability to take a forward looking view on the credit
quality of the entity. CRISIL Ratings believes that rating action
on FML is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, CRISIL Ratings has
continued the ratings on the bank facilities of FML to 'CRISIL
B+/Stable Issuer not cooperating'.
CRISIL Ratings has withdrawn its rating on the bank facilities of
FML on the request of the company and after receiving no objection
certificate from the bank. The rating action is in-line with CRISIL
Rating's policy on withdrawal of its rating on bank loan
facilities.
Set up in 2016, FML, promoted by Mr. Madhav Sheth is the sole
authorized online retailer of OPPO mobiles in India.
GOODLUCK MEDICAL: CRISIL Moves B+ Debt Rating to Not Cooperating
----------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of
Goodluck Medical and Research Centre Private Limited (GMRCPL)
migrated to 'CRISIL B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 34 CRISIL B+ /Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with GMRCPL for
obtaining NDS through letters/emails dated May 31, 2023, June 30,
2023 and July 31, 2023 among others, apart from telephonic
communication to seek the same. After non-receipt of NDS for 2
consecutive months, CRISIL also sent a letter dated July 24, 2023
reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of GMRCPL to confirm timely debt servicing
during these months, but awaits any feedback.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive NDSs from GMRCPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on GMRCPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the rating on bank facilities of GMRCPL
migrated to 'CRISIL B+/Stable Issuer Not Cooperating'
Incorporated in 2004, GMRCPL is currently setting up a new 150 bed
hospital at Greater Noida under the name of Mahanand
Superspeciality Hospitals. The hospital is expected to commence
commercial operations from October 2023. Dr Ramesh Chandra Mishra
and his daughter Dr Aditi Mishra are the promoters.
HEENA ENTERPRISES: CRISIL Withdraws B Rating on INR12cr Loan
------------------------------------------------------------
CRISIL Ratings has withdrawn its rating on the bank facilities of
Heena Enterprises (HE) on the request of the company and after
receiving no objection certificate from the bank. The rating action
is in-line with CRISIL Rating's policy on withdrawal of its rating
on bank loan facilities.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12 CRISIL B/Stable/Issuer Not
Cooperating (Withdrawn)
Channel Financing 4 CRISIL B/Stable/Issuer Not
Cooperating (Withdrawn)
Channel Financing 3 CRISIL B/Stable/Issuer Not
Cooperating (Withdrawn)
CRISIL Ratings has been consistently following up with HE for
obtaining information through letter and email dated June 15, 2023
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of HE. This restricts CRISIL
Ratings' ability to take a forward looking view on the credit
quality of the entity. CRISIL Ratings believes that rating action
on HE is consistent with 'Assessing Information Adequacy Risk'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL Ratings has contnues its the ratings
on the bank facilities of HE to 'CRISIL B/Stable Issuer Not
Cooperating'.
HE was set up as a proprietorship concern in 1978 in Mumbai by Mr.
Bharat Kumar Bhuta. The firm trades in long steel product such as
thermo-mechanically treated bars. Its day-to-day operations are
managed by Mr. Bharat kumar Bhuta and his son, Mr. Bhavin Bhuta.
INDIA: Only 6 Cases Admitted Under Pre-Pack Insolvency for MSMEs
----------------------------------------------------------------
Financial Express reports that the government's pre-pack insolvency
resolution process implemented in 2021 for resolving financial
stress among MSMEs - where default amount ranges between INR10 lakh
and INR1 crore – has so far admitted only six cases. Out of the
six cases, four cases are ongoing while one case is resolved and
one case is withdrawn, according to the data shared by Bhanu Pratap
Singh Verma, Minister of State in the MSME Ministry in a written
reply to a question in the Lok Sabha.
According to the report, the pre-pack process can be initiated by
an eligible MSME corporate debtor who has made the default and has
not undergone or is not undergoing the insolvency process under
Part II of the Insolvency and Bankruptcy Code (Code). However, the
debtor can file for insolvency resolution after approval of the
name of the resolution professional by creditors.
Pre-pack insolvency processes require a certain maturity of
understanding, precedence and case-law history for success, thereby
creating a Catch-22 situation. Ideally, promoters of MSMEs would
seek out a pre-pack in order to avoid default or dissolution.
However, a lack of knowledge, understanding or confidence in the
process inhibits proactive action, leading to the anaemic number of
pre-pack insolvencies, despite the large number of cases where it
could be viable," Utkarsh Sinha, Managing Director at boutique
investment bank firm Bexley Advisors told FE Aspire.
The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021 was
promulgated in April 2021 to introduce the pre-pack insolvency
resolution process. The process was aimed to address the
Covid-induced stress faced by MSMEs.
"The Covid-19 pandemic has impacted their business operations and
exposed many of them to financial stress. Resolution of their
stress requires different treatment, due to the unique nature of
their businesses and simpler corporate structures. Therefore, it
was considered expedient to provide an efficient alternative
insolvency resolution process under the Code for corporate MSMEs,"
Insolvency and Bankruptcy Board of India had noted in an
information brochure on the pre-pack process, FE relays.
FE relates that on the lenders' part, there is uncertainty about
the process, as it involves agreeing to a voluntary haircut before
the trigger event of an actual bankruptcy, in fact precisely in
order to prevent a bankruptcy, as particularly in a setup where
such actions can be probed with a suspicious eye, there is no
incentive for bankers (particularly public sector) to expose
themselves to possible vigilance and other scrutiny to prevent
failure in a private company they've lent to, said Sinha.
INDIRA PRIYADARSHINI: Ind-Ra Keeps D Rating in Non-Cooperating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Indira
Priyadarshini Hydro Power Private Limited's term loan 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 D (ISSUER NOT COOPERATING)' on the
agency's website.
The detailed rating action is:
-- INR238.4 mil. Term loan due on August 30, 2028 maintained in
non-cooperating category with IND D (ISSUER NOT COOPERATING)
rating.
Note: Issuer Not Cooperating: The rating was last reviewed on March
14, 2017. Ind-Ra is unable to provide an update, as the agency does
not have adequate information to review the rating.
Company Profile
Indira Priyadarshini Hydro Power is sponsored by the Ind-Barath
group of companies, which is mainly engaged in the power
development business. The company was incorporated to set up a
4.8MW run-of-the-river hydel power plant in Kangra, Himachal
Pradesh.
KILBURN ENGINEERING: Ind-Ra Moves BB+ Rating in NonCooperating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Kilburn
Engineering Ltd.'s (KEL) Long-Term Issuer Rating of 'IND BB+' to
the non-cooperating category and has simultaneously withdrawn it.
The instrument-wise rating actions are:
-- INR587 mil. Term loans* due on September 2033 migrated to non-
cooperating category and withdrawn;
-- INR249.9 mil. Fund-based facility* migrated to non-cooperating
category and withdrawn;
-- INR486.30 mil. Non-fund-based limits** migrated to non-
cooperating category and withdrawn; and
-- INR308.7 mil. Proposed non-fund-based working capital limits**
migrated to non-cooperating category and withdrawn.
Note: ISSUER NOT COOPERATING: The issuer did not co-operate, based
on the best available information.
*Migrated to 'IND BB+ (ISSUER NOT COOPERATING)' before being
withdrawn
**Migrated to 'IND A4+ (ISSUER NOT COOPERATING')' before being
withdrawn
Key Rating Drivers
Ind-Ra has migrated the ratings to the non-cooperating category
because KEL did not participate in the rating exercise despite
requests by the agency and has not provided information pertaining
to the latest sanction letter, management certificate, operational
performance etc. 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 and no-due certificate from
the lender and withdrawal request from the issuer. This is
consistent with Ind-Ra's Policy on Withdrawal of Ratings. Ind-Ra
will no longer provide analytical and rating coverage for the
company.
Company Profile
Incorporated in 1987, KEL is engaged in the designing,
manufacturing and commissioning of customized equipment/systems for
diverse applications in industries such as chemical, petrochemical,
oil & gas, refineries, power, steel, cement, fertilizer, mining,
sewage treatment, food, among others. It also manufactures
specially designed packages required for various onshore and
offshore applications. It has a manufacturing and testing facility
near Mumbai.
M. E. ENERGY: CRISIL Moves B Debt Ratings to Not Cooperating
------------------------------------------------------------
CRISIL Ratings has migrated the ratings on bank facilities of M. E.
Energy Private Limited (MEEPL) to 'CRISIL B/Stable/CRISIL A4
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 8 CRISIL A4 (ISSUER NOT
COOPERATING; Rating Migrated)
Cash Credit 4 CRISIL B/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Letter of Credit 2.5 CRISIL A4 (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Non Fund 10.47 CRISIL A4 (ISSUER NOT
based limits COOPERATING; Rating Migrated)
Rupee Term Loan 2.53 CRISIL B/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Working Capital 2.50 CRISIL B/Stable (ISSUER NOT
Term Loan COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with MEEPL for
obtaining NDS through letters/emails dated May 31, 2023, June 30,
2023 and July 31, 2023 among others, apart from telephonic
communication to seek the same. After non-receipt of NDS for 2
consecutive months, we also sent a letter dated July 24, 2023
reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of MEEPL to confirm timely debt servicing during
these months, but awaits any feedback.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive NDSs from MEEPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on MEEPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of MEEPL
migrated to 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating'
Set up in 1998 by Mr K V Kartha, MEEPL undertakes energy-saving
projects and designs, manufactures and installs heating and cooling
systems and equipment. Its facility is in Pune, Maharashtra.
MAYFAIR HOUSING: CRISIL Withdraws B Debt Rating on LT Loan
----------------------------------------------------------
CRISIL Ratings has withdrawn its rating on the bank facilities of
Mayfair Housing Private Limited (MHPL) on the request of the
company and after receiving no objection certificate from the bank.
The rating action is in-line with CRISIL Rating's policy on
withdrawal of its rating on bank loan facilities.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Rating - CRISIL B/Stable (ISSUER NOT
COOPERATING; Rating Withdrawn)
Short Term Rating - CRISIL A4 (ISSUER NOT
COOPERATING; Rating Withdrawn)
CRISIL Ratings has been consistently following up with MHPL for
obtaining information through letters and emails dated October 21,
2022 and December 15, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MHPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MHPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MHPL continues to be 'CRISIL B/Stable/CRISIL A4 Issuer Not
Cooperating'.
MHPL, incorporated in 1964, develops residential real estate
projects predominantly in and around Mumbai. It is part of the
Mayfair Group and is currently promoted by Mr Nayan Shah.
MEHRA NOVELTIES: CRISIL Moves B Debt Rating to Not Cooperating
--------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of Mehra
Novelties (MN) to 'CRISIL B/Stable Issuer Not Cooperating'
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5.75 CRISIL B/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with MN for
obtaining NDS through letters/emails dated May 31, 2023, June 30,
2023 and July 31, 2023 among others, apart from telephonic
communication to seek the same. After non-receipt of NDS for 2
consecutive months, we also sent a letter dated July 24, 2023
reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of MN to confirm timely debt servicing during
these months, but awaits any feedback.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive NDSs from MN, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on MN is consistent with
'Assessing Information Adequacy Risk'. Based on the last available
information, the rating on bank facilities of MN migrated to
'CRISIL B/Stable Issuer Not Cooperating'
MN was set in 2004, the firm is promoted by Mr. Rishi Mehra. The
firm is engaged in supplying of corporate gift items & novelties
such as safety products, handicrafts, accessories, promotional
article, metal articles, household and candles. The firm is based
out of Delhi having offices in Delhi and Mumbai.
PRAGATI GRANITO: CRISIL Moves B+ Debt Ratings to Not Cooperating
----------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of
Pragati Granito (India) Private Limited (PGIPL) to 'CRISIL
B+/Stable Issuer Not Cooperating'
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 0.72 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Term Loan 5.28 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with PGIPL for
obtaining NDS through letters/emails dated May 31, 2023, June 30,
2023 and July 31, 2023 among others, apart from telephonic
communication to seek the same. After non-receipt of NDS for 2
consecutive months, we also sent a letter dated July 24, 2023
reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of PGIPL to confirm timely debt servicing during
these months, but awaits any feedback.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive NDSs from PGIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on PGIPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the rating on bank facilities of PGIPL
migrated to 'CRISIL B+/Stable Issuer Not Cooperating'
Incorporated in 2018, PGIPL has a granite cutting and polishing
unit in Purulia, West Bengal, with installed capacity of 12 lakh
square feet per annum. The plant was commissioned in November 2019.
Mr Ajit Kumar Sarawgi, Mr Siddharth Sarawgi and Mr Yash Sureka are
the promoters.
PUNE KHARADI: Ind-Ra Assigns BB- Term Loan Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Pune Kharadi Tower
Private Limited's (PKTPL) term loan 'IND BB-'. The Outlook is
Stable.
The detailed rating action is:
-- INR900 mil. Term loan due on June 2025 assigned with IND BB-/
Stable rating.
ANALYTICAL APPROACH: Ind-Ra has taken a standalone view of PKTPL.
The rating factors in the inherent benefit of its association with
Singapore-based Keppel Corporation Limited (KCL) and its
subsidiaries (the Keppel group).
Key Rating Drivers
Liquidity Indicator - Stretched: PKTPL has cash and equivalents of
INR57 million at FYE23, mainly through an infusion of funds by its
parent company Keppel Land Limited (KLL), and no undisbursed
limits. The company has overall debt obligation of INR1,041 billion
including loan repayment of INR900 million over FY24-FY25, for
which the current available funds are insufficient, and PKTPL will
have to rely on either further infusion by KLL or return of its
investment of INR895 million in Silverio Developers Private Limited
(SDPL) to make the payments. The investment made in FY23 was its
initial consideration for purchasing the commercial project, Zen
One (the project, total area: 1.1 million square feet), which is
being developed by Pune-based Kohinoor group through SDPL in
Kharadi, Pune. However, PKTPL's investment in SDPL was secured by
bank guarantees which can be invoked in case the project is not
completed by SDPL within the stipulated time, thus providing some
comfort.
PKTPL, which was incorporated only in January 2023, is wholly owned
by the Keppel group through KLL and is only acting as a medium for
the Keppel group's investment in the project. PKTPL had no
operations as of July 31, 2023, and hence no operational revenue or
earnings. PKTPL also had no other assets on its books, apart from
its investment in SDPL as of July 31, 2023. The Keppel group has
entered into a forward purchase agreement with SDPL to acquire the
project. The location of the project is favorable to commercial
developments, given the presence of a few grade A commercial
projects such as Eon IT Park, the Eon Free Zone and the World Trade
Centre. The project is close to residential hubs of Kharadi and
Wagholi, as well as other established markets such as Hadapsar,
Mundhwa, Ghorpadi and Magarpatta City in eastern Pune.
Furthermore, the methods of completing the transaction have yet to
be finalized, and PKTPL's management stated that it would decide
the method by the end of the transaction and the project
development. PKTPL may or may not own the project, and hence, any
plans for the company beyond the project construction period is not
available as of now. The agency will continue to monitor the
transaction for any further changes.
The overall consideration for the project would be around INR9.0
billion, and the remaining portion will be paid to SDPL by PKTPL,
subject to balance sheet adjustments, close to the completion of
the project. The construction of the project is ongoing, and has
been completed till the ground floor slab (project includes one
tower having three basements plus ground floor along with three
podiums and 14 floors). As per PKTPL, the project development is
likely to be completed by March 2025. Further details of the
project are not available.
As per PKTPL's management, the remaining consideration (net of the
debt in the books of SDPL) from PKTPL to SDPL will be in the form
of equity infusion in PKTPL by KLL. However, Ind-Ra will continue
to monitor the debt position of PKTPL for any increase in the debt
for funding its balance consideration and the security structure
for any negative implications.
The rating is supported by the parent support available from KLL to
PKTPL. The company has availed a facility of INR900 million to make
the investment into SDPL, and KLL has provided a corporate
guarantee for the same. The entire facility has been disbursed as
on date. Furthermore, KLL infused about INR60 million in PKTPL in
FY23, and Ind-Ra expects KLL to infuse more funds in PKTPL to
continue with the interest payments through FY24 and FY25. Although
PKTPL's management is different from KCL, KLL or the Keppel group
with no common directors, the strategic decisions are taken by the
Keppel group.
Rating Sensitivities
Positive: The successful completion of the project and the project
purchase transaction by PKTPL, and an improvement in liquidity
could result in a rating upgrade.
Negative: Substantial delays in project acquisition, any weakening
of linkages with the parent or any deterioration in the liquidity
position could result in a downgrade.
Company Profile
PKTPL, incorporated in January 2023, is a wholly owned subsidiary
of the Keppel group. Through PKTPL, the Keppel group invested
INR895 million in SDPL towards project Zen One, which is being
developed by Pune-based Kohinoor group.
R J BUILDCON: CRISIL Moves B+ Debt Rating to Not Cooperating
------------------------------------------------------------
CRISIL Ratings has migrated the ratings on bank facilities of R J
Buildcon Private Limited (RJBPL) to 'CRISIL B+/Stable/CRISIL A4
Issuer Not Cooperating'
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Bank 6 CRISIL A4 (ISSUER NOT
Guarantee COOPERATING; Rating Migrated)
Proposed Cash 2.57 CRISIL B+/Stable (ISSUER NOT
Credit Limit COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with RJBPL for
obtaining NDS through letters/emails dated May 31, 2023, June 30,
2023 and July 31, 2023 among others, apart from telephonic
communication to seek the same. After non-receipt of NDS for 2
consecutive months, we also sent a letter dated July 24, 2023
reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of RJBPL to confirm timely debt servicing during
these months, but awaits any feedback.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive NDSs from RJBPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on RJBPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of RJBPL
migrated to 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating'
Incorporated in March 2008, RJBPL is promoted by the Jalkote family
and primarily undertakes road construction contracts. The company
also has four ready-mix-concrete (RMC) plants with two in Pune, one
in Adilabad and one in Nanded. One plant in Pune has capacity of
around 60 cubic meters per hour, the rest of the plants produce the
concrete with capacity of 18 cubic meters per hour.
RAILTRACK CONCRETE: CRISIL Ups Rating on INR3.5cr Loan to B+
------------------------------------------------------------
CRISIL Ratings has upgraded its rating on the long-term bank
facilities of Railtrack Concrete Products Private Limited (RCPPL)
to 'CRISIL B+/Stable' from 'CRISIL B/Stable' and reaffirmed its
'CRISIL A4' rating on the short-term bank facility.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1 CRISIL A4 (Reaffirmed)
Cash Credit 3.5 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Letter of Credit 2 CRISIL A4 (Reaffirmed)
Working Capital 0.5 CRISIL B+/Stable (Upgraded
Term Loan from 'CRISIL B/Stable')
The rating upgrade reflects significant improvement in scale as
turnover grew by 40% in FY23. RCPPL clocked topline of INR33 Cr in
FY23 against 23.6 Cr in Fy22. Unexecuted orders of INR22 Cr and
another 80 Cr of orders in pipeline provide medium-term revenue
visibility. The operating margins remain stable around 8-9%
indicating moderate operating efficiency. Capital structure also,
estimated to strengthen marked by improved debt-equity ratio of
1.17, estimated as on March 2023.
The rating continues to reflect the modest scale of operations and
weak financial risk profile. The weaknesses are partially offset by
the extensive experience of the promoters.
Analytical Approach
USL of INR3.50 crore treated as quasi-equity as it is expected to
stay in the business over the medium term and no interest is
getting charged.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operation: The company have booked revenue of
INR23.65 crores in FY 22 and about INR33 Cr in Fy23. Scale remained
modest because of delayed offtake by the principals and slow order
inflow. As the company is currently focusing more on exports and is
acquiring new orders, improvement in scale of operations will
remain a key monitorable over the medium term.
* Weak financial risk profile: Total outside liabilities to
adjusted networth ratio was around 6 times, estimated as on March
31, 2023. High overall gearing and low adjusted networth of around
4.5 Cr, estimated as on March 2023 will continue to constrain the
financial risk profile of the company.
Strength:
* Extensive experience of the promoter: The three–decade-long
experience of the promoters in the industrial machinery and
consumables industry, their strong understanding of market
dynamics, and established relationships with suppliers and
customers will continue to support business risk profile.
Liquidity: Poor
Bank limit utilisation is moderately high at around 90.53 percent
for the past thirteen months ended March 2023. Cash accruals are
expected to be over INR1.8-2 crore, which are sufficient against
term debt obligation of INR20-30 lacs over the medium term. In
addition to promoters' need based funding support, it will act as
cushion to the liquidity of the company.
Outlook: Stable
CRISIL Ratings believes the company will continue to benefit from
the extensive experience of the promoters.
Rating Sensitivity factors
Upward factors
* Improvement in financial profile particularly capital structure
leading to TOL/ANW below 3.
* Significant growth in scale of operations
Downward factors
* Lower than expected scale of operation and profitability level
leading to net cash accruals below INR0.5 crore.
* Further stretch in working capital parameters and weakening of
financial risk profile
Railtrack Concrete Products Private Limited (RCPPL) incorporated in
July 2014 and promoted by Mr Sabyasachi Munshi, manufactures
railway sleepers, mainly for the Indian Railways. Facility near
Bihara railway station yard in Silchar, Assam, has installed
capacity of 1,70,000 sleeper per annum.
ROHIT EXTRACTIONS: Ind-Ra Affirms BB Issuer Rating, Outlook Stable
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Rohit Extractions
Pvt Ltd.'s (REPL) Long-Term Issuer Rating at 'IND BB'. The Outlook
is Stable.
The instrument-wise rating actions are:
-- INR410 mil. Fund-based working capital limit affirmed with
IND BB/Stable/INDA4+ rating; and
-- INR77.7 mil. Term loan due on March 2026 affirmed with
IND BB/Stable rating.
Analytical Approach: Ind-Ra has changed the rating approach to
taking a standalone view from a consolidated view as REPL and its
group company RNK Agro and Chemicals Private Limited are no longer
providing corporate guarantees for each other's debt; and hence,
the linkages between the two no longer remain strong.
Key Rating Drivers
The affirmation reflects REPL's continued modest credit metrics. As
per FY23 provisional financials, the gross interest coverage
(operating EBITDA/gross interest expense) deteriorated to 1.85x in
FY23 (FY22: 1.93x, FY21: 1.78x) and the net leverage (total
adjusted net debt/operating EBITDAR) to 6.52x (5.86x, 6.8x) on
account of increased utilization of the fund-based limits. However,
Ind-Ra expects the overall credit metrics to improve in the medium
term due to the scheduled repayment of term loans and the absence
of any debt-funded capex plans.
Liquidity Indicator - Stretched: The average maximum utilization of
the fund-based limits was 99.1% over the 12 months ended June 2023.
The cash flow from operations declined further to negative
INR140.04 million in FY23 (FY22: negative INR14.94 million, FY21:
negative INR22.53 million) due to unfavorable changes in the
working capital because of higher inventory. Consequently, the free
cash flow declined to negative INR145.9 million in FY23 (FY22:
negative INR15.33 million, FY21: negative INR44.73 million). The
net working capital cycle elongated to 172 days in FY23 (FY22: 148
days, FY21: 211 days) due to an increase in the inventory holding
period to 104 days (76 days, 95 days). Given the nature of business
and seasonal availability of rice bran, REPL maintains an inventory
of two-to-three months. The cash and cash equivalents stood low at
INR0.82 million at FYE23 (FYE22: INR0.69 million, FYE21: INR4.0
million). REPL has scheduled repayments of INR46.9 million and
INR30.3 million in FY24 and FY25, respectively. Moreover, REPL does
not have any capital market exposure and relies on banks and
financial institutions to meet its funding requirements.
The ratings further reflect REPL's continued modest EBITDA margins
of 5.4% in FY23 (FY22: 5.45%, FY21: 6.9%) with a return on capital
employed of 10.2% (10%, 8.8%). The EBITDA margins are vulnerable to
volatility in prices and availability of rice bran, which remains
influenced by the monsoon and crop cycles. The cost of rice bran
alone accounts for 75%-80% of the total cost. Ind-Ra expects the
EBITDA margins to remain susceptible to input cost fluctuations in
the medium term.
The ratings also continue to factor in REPL's medium scale of
operations, as indicated by revenue of INR2,229.13 million in FY23
(FY22: INR1,997.51 million, FY21: INR1,360.38 million). The revenue
growth in FY23 was driven by an increase in the sales volume on the
back of increased demand for rice bran oil as well as improved
realization. In 1QFY24, REPL booked revenue of about INR500
million. It operates two manufacturing units with a total capacity
of 96,000 metric tons per annum. Unit 1 is for the extraction of
crude rice bran oil and de-oiled cake (a by-product of rice bran
oil) and Unit 2 is for manufacturing of aquatic feed and poultry
feed supplements. The capacity utilization of Unit 1 and Unit 2
stood at around 70% and 50%, respectively, in FY23. Unit 1
contributed 85.78% to the revenue in FY23 (FY22: 82.34%, FY21:
73.72%), while Unit 2 contributed the remainder. Ind-Ra expects the
revenue to remain increase over the medium term on account of a
likely higher demand for rice bran oil.
The ratings, however, are supported by the promoters' experience of
three decades in the extraction of rice bran oil and manufacturing
of poultry and aquatic feed, leading to established relationships
with its brokers, customers and suppliers.
Rating Sensitivities
Negative: Any decline in the scale of operations, leading to
deterioration in the credit metrics, along with a weakening of the
liquidity position, all on a sustained basis, will be negative for
the ratings.
Positive: A substantial increase in the scale of operations,
leading to an improvement in the overall credit metrics, with the
interest coverage increasing above 2.0x and an improvement in the
working capital cycle, leading to an improvement in the liquidity,
all on a sustained basis, will be positive for the ratings.
Company Profile
Incorporated in 1991, Hyderabad-based REPL manufactures rice bran
crude oil, poultry and aquatic feed at its manufacturing unit
located in Hyderabad.
S.S. INFRAZONE: CRISIL Moves B+ Debt Rating to Not Cooperating
--------------------------------------------------------------
CRISIL Ratings has migrated the ratings on bank facilities of S.S.
Infrazone Private Limited (SSIPL) to 'CRISIL B+/Stable/CRISIL A4
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 25 CRISIL A4 (ISSUER NOT
COOPERATING; Rating Migrated)
Cash Credit 1 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with SSIPL for
obtaining NDS through letters/emails dated May 31, 2023, June 30,
2023 and July 31, 2023 among others, apart from telephonic
communication to seek the same. After non-receipt of NDS for 2
consecutive months, we also sent a letter dated July 24, 2023
reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of SSIPL to confirm timely debt servicing during
these months, but awaits any feedback.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive NDSs from SSIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on SSIPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of SSIPL
migrated to 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating'
Incorporated in 2012 and based in Lucknow, SSIPL is engaged in
civil construction work, mainly for roads and irrigation projects.
Ms Sangeeta Singh and Mr SP Singh are the promoters of the company.
Operations are managed by Mr SP Singh.
SECURENS SYSTEMS: Ind-Ra Cuts LongTerm Issuer Rating to 'BB'
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Securens Systems
Private Limited's (SSPL) Long-Term Issuer Rating to 'IND BB+' from
'IND BBB'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR7.5 mil. Fund-based working capital limit downgraded with
IND BB+/Stable/IND A4+ rating;
-- INR50 mil. Non-fund-based working capital limit downgraded
with IND A4+ rating; and
-- INR311.06 mil. Term loan due on April 5, 2028 downgraded with
IND BB+/Stable rating.
The downgrade reflects the deterioration in SSPL's revenue, margins
and credit metrics in FY23.
Key Rating Drivers
Fall in Revenue and EBITDA Margin; Scale of Operations to Remain
Medium: SSPL's revenue declined to INR810.23 million in FY23
(FY22: INR934.42 million) due to the completion of its contracts
with two of its top five customers in the banking, financial
services and insurance segment, Punjab National Bank (IND
AAA/Stable) and State Bank of India (IND AAA/Stable), at 3QFYE23.
The EBITDA margins declined sharply to 7.42% in FY23 (FY22: 39.38%)
due to lower absorption of fixed costs, due to the decline in
revenue, and increased expenses for the international business. The
management expects SSPL to generate monthly recurring revenue of
INR25 million every month from its existing clientele. Furthermore,
SSPL plans to expand its operations internationally, with the
company planning to explore growth opportunities in Bangladesh,
Kenya and the US. Ind-Ra expects the scale of operations to remain
at similar levels over the medium term. FY23 numbers are
provisional in nature.
Deterioration in Credit Metrics: The net leverage (adjusted net
debt/operating EBITDAR) deteriorated significantly to 19.55x in
FY23 (FY22: 3.19x) owing to a sharp decline in the operating EBITDA
to INR60.08 million (FY22: INR367.94 million). The adjusted net
debt includes the cumulative compulsorily convertible preference
shares (CCCPS), which contain a put option. The management does not
expect the lenders to exercise their right to sell. Excluding
CCCPS, the net leverage weakened to 5.86x in FY23 (FY22: 0.86x).
Despite a fall in the gross interest expenses to INR33.56 million
in FY23 (FY22: INR65.8 million), the gross interest coverage
deteriorated to around 1.79x (5.59x) owing to the significant
decrease in the EBITDA. Ind-Ra expects the credit metrics to remain
weak in the near-to-medium term due to continued low EBITDA levels.
Liquidity Indicator - Stretched: The company's average utilization
of the fund-based limits was 81.50% for the 12 months ended March
2023. Ind-Ra believes the utilization level were similar over
April-July 2023 The working capital cycle elongated to 71 days in
FY23 (FY22: 57 days) on the back of an increase in the receivable
period to 99 days (76 days) and inventory holding period to 111
days (91 days). The cash flow from operations decreased to
INR170.07 million in FY23 (FY22: INR196.52 million) because of the
decrease in the absolute EBITDA. SSPL had cash and cash equivalents
of INR191.80 million at FYE23 (FYE22: INR158.83 million), against
debt obligations of INR166.20 million in FY24 and INR54.82 million
in FY25. Ind-Ra expects the liquidity to remain stretched over the
near-to-medium term.
Capital-Intensive Nature of Business: SSPL incurs installation cost
of INR40,000-50,000 per site, which is financed through bank loans.
SSPL recovers the installation cost from the customers at the
initial stage only in case of small retailers. Thus, timely
availability of funds to install new sites remains a risk. As per
SSPL's management, the company plans to undertake capex of INR100
million-150 million in FY24 for the execution of its new orders in
hand. However, given the weak operational performance, Ind-Ra
believes the company would require additional financing to execute
the new orders in the short-to-medium term.
Rating Sensitivities
Negative: Substantial deterioration in the scale of operations or
liquidity or the net leverage remaining above 5x would be negative
for the ratings.
Positive: Substantial improvement in the scale of operations and
the liquidity, with the net leverage declining below 3.5x, would
be positive for the ratings.
Company Profile
Incorporated in 2011, SSPL is an e-surveillance company that
provides security and safety services to banks, warehouses,
factories and other retail clients. It is promoted by Sunil Udupa.
SHANKER PLASTIC: CRISIL Raises Rating on INR11.5cr Cash Loan to B
-----------------------------------------------------------------
CRISIL Ratings has upgraded its rating on the bank facilities of
Shanker Plastic Products (SPP) to 'CRISIL B/Stable' from 'CRISIL
D'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 11.5 CRISIL B/Stable (Upgraded
from 'CRISIL D')
Proposed Long Term 2.4 CRISIL B/Stable (Upgraded
Bank Loan Facility from 'CRISIL D')
Working Capital 1.1 CRISIL B/Stable (Upgraded
Term Loan from 'CRISIL D')
The upgrade reflects the timely meeting of debt obligation and
sustained business risk profile. Despite being modest, operating
income improved to INR51.24 crore in fiscal 2023 from INR45.78
crore previous fiscal on the back of steady demand from its
established clientele and diversified geographical presence.
The rating reflects the modest scale of operations due to intense
competition in the pipes and fitting industry, and susceptibility
of profitability to fluctuations in raw material prices. These
weaknesses are partially offset by the extensive industry
experience of the proprietor.
Key rating drivers & detailed description
Weaknesses:
* Exposure to intense competition and modest scale of operations:
Exposure to intense competition in the pipes and fittings industry,
limited product differentiation and high price sensitivity prevent
swift pass-through of any increase in input cost to customers,
thereby restricting operating flexibility. Hence, revenue remained
subdued at around INR51.24 crore in fiscal 2023. Scale will remain
small over the medium term.
* Susceptibility of profitability to fluctuations in raw material
prices: Prices of HDPE (high-density polyethylene) granules (key
input) are volatile and susceptible to movement in global prices
and regional demand-supply dynamics. Thus, any sharp increase in
raw material prices could adversely impact profitability.
Strength:
* Extensive experience of the proprietor: Proprietor experience of
more than two decades in the pipes and pipe fittings industry, his
strong understanding of market dynamics, and established
relationships with suppliers and customers will continue to support
the business risk profile.
Liquidity: Stretched
Bank limit utilisation was 99.56% for the 12 months through March
2023. Cash accrual of over INR2 crore over the medium term will be
sufficient to meet term debt obligation of INR0.6-0.9 crore per
annum; the remaining will cushion liquidity. Current ratio was
moderate at 1.26 times as on March 31, 2023.
Outlook: Stable
The firm will continue to benefit from the extensive experience of
its proprietor and established relationships with clients.
Rating sensitivity factors
Upward factors:
* Improvement in working capital cycle and liquidity with average
bank limit utilisation below 90%
* Growth in revenue by more than 20% and sustenance of operating
margin above 9%
Downside factors:
* Sharp decline in revenue by more than 30% or fall in operating
margin below 6%
* Stretch in working capital cycle weakening financial risk
profile, especially liquidity
SPP was formed as a proprietorship concern by Mr Parveen Sharma in
2012. The firm manufactures PVC (polyvinyl chloride) plastic pipes,
garden pipes and water storages tanks under the Jehlum, Victrex,
and Durend brands. It has two facilities in Samba, Jammu; and
Jaipur with installed capacity of 4 lakh plastic water tanks per
annum.
SHIRAGUPPI SUGAR: Ind-Ra Keeps BB Issuer Rating in NonCooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Shiraguppi Sugar
Works 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:
-- INR1.20 bil. Fund-based working capital limit# maintained in
non-cooperating category and withdrawn; and
-- INR1.316 bil. Term loan* due on July 2025 maintained in non-
cooperating category and withdrawn.
Note: ISSUER NOT COOPERATING: The issuer did not cooperate, based
on the best available information
*Maintained at 'IND BB (ISSUER NOT COOPERATING)' before being
withdrawn
#Maintained at 'IND BB (ISSUER NOT COOPERATING)/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
Incorporated in 1997, Shiraguppi Sugar Works manufactures sugar.
The company also sells by-products such as bagasse, molasses and
pressmud.
SHITAL FIBERS: CRISIL Withdraws D Rating on INR80cr Cash Loan
-------------------------------------------------------------
CRISIL Ratings has withdrawn its rating on the bank facilities of
Shital Fibers Limited (SFL) on the request of the company and after
receiving no objection certificate from the bank. The rating action
is in-line with CRISIL Rating's policy on withdrawal of its rating
on bank loan facilities.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 80 CRISIL D/Issuer Not
Cooperating (Withdrawn)
Letter of Credit 39 CRISIL D/Issuer Not
Cooperating (Withdrawn)
Rupee Term Loan 11 CRISIL D/Issuer Not
Cooperating (Withdrawn)
CRISIL Ratings has been consistently following up with SFL for
obtaining information through letter and email dated July 19, 2023
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SFL. This restricts CRISIL
Ratings' ability to take a forward looking view on the credit
quality of the entity. CRISIL Ratings believes that rating action
on SFL is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, CRISIL Ratings has
continued the ratings on the bank facilities of SFL to 'CRISIL
D/CRISIL D Issuer not cooperating'.
SFL was formed in 1992, by the promoter, Mr Shital Vij. The firm
manufactures acrylic mink blankets, and caters to domestic and
overseas markets. Manufacturing units are at Jalandhar, Punjab.
SHIVAM CONSTRUCTION: CRISIL Moves B+ Rating to Not Cooperating
--------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of Shivam
Construction (SC) to 'CRISIL B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Term Loan 9 CRISIL B+ /Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with SC for
obtaining NDS through letters/emails dated May 31, 2023, June 30,
2023 and July 31, 2023 among others, apart from telephonic
communication to seek the same. After non-receipt of NDS for 2
consecutive months, we also sent a letter dated July 24, 2023
reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of SC to confirm timely debt servicing during
these months, but awaits any feedback.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive NDSs from SC, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on SC is consistent with
'Assessing Information Adequacy Risk'. Based on the last available
information, the rating on bank facilities of SC migrated to
'CRISIL B+/Stable Issuer Not Cooperating'
SC was formed as partnership between Mr Santanu Chakraborty and Ms
Somia Chakraborty in 2012. The firm undertakes construction of
residential complexes and units in and around Midnapore, West
Bengal.
SIDHAARTH EXPORTS: CRISIL Moves B+ Ratings to Not Cooperating
-------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of
Sidhaarth Exports Private Limited (SEPL) to 'CRISIL B+/Stable
Issuer Not Cooperating'
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 1 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Fund- 9 CRISIL B+/Stable (ISSUER NOT
Based Bank Limits COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with SEPL for
obtaining NDS through letters/emails dated May 31, 2023, June 30,
2023 and July 31, 2023 among others, apart from telephonic
communication to seek the same. After non-receipt of NDS for 2
consecutive months, we also sent a letter dated July 24, 2023
reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of SEPL to confirm timely debt servicing during
these months, but awaits any feedback.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive NDSs from SEPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on SEPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the rating on bank facilities of SEPL
migrated to 'CRISIL B+/Stable Issuer Not Cooperating'
Incorporated in 1989, Coimbatore (Tamil Nadu)-based SEPL
manufactures polyester yarn on job work basis. The operations are
managed by the promoter Mr. Ethirajulu Sathyanarayana.
SIMANCHAL CONSTRUCTION: CRISIL Moves B+ Rating to Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings has migrated the ratings on bank facilities of
Simanchal Construction (SC) to 'CRISIL B+/Stable/CRISIL A4 Issuer
Not Cooperating'
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 12 CRISIL A4 (ISSUER NOT
COOPERATING; Rating Migrated)
Cash Credit 3 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Non Fund 4 CRISIL A4 (ISSUER NOT
based limits COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with SC for
obtaining NDS through letters/emails dated May 31, 2023, June 30,
2023 and July 31, 2023 among others, apart from telephonic
communication to seek the same. After non-receipt of NDS for 2
consecutive months, we also sent a letter dated July 24, 2023
reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of SC to confirm timely debt servicing during
these months, but awaits any feedback.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive NDSs from SC, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on SC is consistent with
'Assessing Information Adequacy Risk'. Based on the last available
information, the ratings on bank facilities of SC migrated to
'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating'
SC, established in 1999, is located in Araria, Bihar. SC is
engaged in civil construction works, such as construction of roads
and bridges, etc. SC is owned & managed by Mr. Ajay Kr. Jha, Mr.
Samar Nath Singh, Mrs. Sanju Jha and Mrs. Neelam Singh.
STRESCON INDUSTRIES: CRISIL Reaffirms B+ Rating on INR10.5cr Loan
-----------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable' rating on the
long-term bank facilities of Strescon Industries Limited (SIL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10.5 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 2 CRISIL B+/Stable (Reaffirmed)
Term Loan 1.5 CRISIL B+/Stable (Reaffirmed)
The ratings continue to reflect the modest scale of operations and
large working capital requirement. These weaknesses are partially
offset by the extensive experience of the promoter in the railway
sleepers manufacturing industry.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations: High customer concentration risk
persists as major portion of the revenue comes from tenders awarded
by the Indian Railways (IR). Lack of alternate demand has
restricted scalability, as reflected in modest revenue of INR29
crore in fiscal 2022. Though with additional export orders for
Bangladesh Railway and improved order inflow from IR have helped
the revenue levels grow to about 32 Cr, acquisition of new orders
and timely execution of the same will remain key monitorable going
forward.
* Large working capital requirement: GCAs were 400-600 days for the
last three fiscals ended March 31, 2023 driven by high inventory
and reduced offtake by Indian Railways owing to pandemic induced
disruptions. The company needs to maintain high inventory due to
sizeable work in progress, resulting in stretched working capital
cycle.
Strengths:
* Extensive experience of the promoter: The over three-decade
experience of the promoter in the railway sleepers manufacturing
industry, his in-depth understanding of market dynamics and
establish relationships with suppliers and customers should
continue to support the business
* Moderate financial risk profile: Capital structure remains
supported by average networth of INR18.5 Cr and adjusted gearing of
0.8; estimated as on March 2023. With steady accretion to reserves
and repayment of term debt, capital structure is likely to improve
further going forward.
Liquidity: Poor
Bank limit utilisation averaged a high 96% for the 12 months
through March 2023, indicating a stretched liquidity profile.
Expected cash accrual of INR1.7 crore remains tightly matched
against debt obligations of INR1-1.5 Cr.
Outlook: Stable
CRISIL Ratings believes SIL will continue to benefit from the
extensive experience of its promoter.
Rating Sensitivity factors
Upward factors
* Increase in revenue by 20% and stable profitability leading to
cash accrual of more than INR2 crore.
Improvement in working capital cycle
Downward factors
* Further stretch in working capital cycle
* Lower-than-expected topline or dip in profitability leading to
cash accrual below 1 Cr
Incorporated in 1978 by Mr Sabyasachi Munshi in Kolkata, SIL
manufactures railway concrete sleepers. The company is serving the
Indian Railway for past 25 years in the railway circuit. SIL is an
ISO 9001:2008 Company that has pioneering presence in the field of
manufacturing of Pre-Stressed Concrete Sleepers and its after sales
services in India.
TALIB HUSSAIN: CRISIL Moves B+ Debt Ratings to Not Cooperating
--------------------------------------------------------------
CRISIL Ratings has migrated the ratings on bank facilities of Talib
Hussain Chashti (THC) to 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 6 CRISIL A4 (ISSUER NOT
COOPERATING; Rating Migrated)
Overdraft Facility 6 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Fund- 0.5 CRISIL B+/Stable (Issuer Not
Based Bank Limits Cooperating)
Term Loan 1.5 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with THC for
obtaining NDS through letters/emails dated May 31, 2023, June 30,
2023 and July 31, 2023 among others, apart from telephonic
communication to seek the same. After non-receipt of NDS for 2
consecutive months, we also sent a letter dated July 24, 2023
reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of THC to confirm timely debt servicing during
these months, but awaits any feedback.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive NDSs from THC, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on THC is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of THC
migrated to 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating'
THC based in Poonch, Jammu and Kashmir, is engaged in civil
construction works, such as construction of roads and bridges. It
is owned and managed by Mr Talib Hussain and Mr Mohammad Rafiq.
VALLEY FRESH: CRISIL Moves Lowers Rating on INR12.75cr Loan to B+
-----------------------------------------------------------------
Due to inadequate information and in line with the guidelines of
the Securities and Exchange Board of India, CRISIL Ratings had
migrated the rating of Valley Fresh Cold Chain Pvt Ltd (VFCCPL) to
'CRISIL BB-/Stable Issuer Not Cooperating'. However, the management
has subsequently started sharing the requisite information
necessary for carrying out a comprehensive review of the rating.
Consequently, CRISIL Ratings is migrating the rating to 'CRISIL
B+/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12.75 CRISIL B+/Stable (Migrated from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Proposed Long Term 3.71 CRISIL B+/Stable (Migrated from
Bank Loan Facility 'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Term Loan 24.14 CRISIL B+/Stable (Migrated from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Term Loan 3.40 CRISIL B+/Stable (Migrated from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
The rating reflects the company's small scale of business, and
large working capital requirement. Their weaknesses are offset by
Locational advantage due to the presence of its facility in
Pulwama, Jammu and Kashmir and high operating margin.
Key Rating Drivers & Detailed Description
Weaknesses:
* Small scale of business: VFCCPL's scale of operation is small
with estimated revenue of INR18.09 crore in fiscal 2023. Company
revenue were below INR15 crore in past 3 fiscals ended March 31,
2022. VFCCPL has started storage of plum in addition to apple
storage. Further it is to increase its existing storage capacity of
10,000 Metric tonne by additional 1500 Metric tonne to total 1,1500
Metric tonne in the current fiscal, which shall support its scale.
Sustainable growth in revenue remains a key rating sensitivity
factor.
* Large working capital requirement: Large working capital
requirement as reflected in the gross current assets (GCAs) of over
400 days in past three fiscals ended March 31, 2023. The company
has large working capital requirement mainly because of high
inventory holding period of above 300 days to sell apples in the
off season. The company provides credit of ~180 days which further
stretch the debtors and adds to its already high working capital
requirement. CRISIL Ratings believes VFCCPL's small scale in a
competitive industry will limits its ability to bargain with
suppliers and customers, leading to pressure on its working capital
cycle.
Strengths:
* Locational advantage due to the presence of its facility in
Pulwama, Jammu and Kashmir: The controlled atmosphere storage
facility at Pulwama enables the company to source easily from the
nearby apple-growing areas and store high-grade apples. CRISIL
Ratings believes the company will benefit from its in-house cold
storage facility and presence in the Pulwama region.
* High operating margin: The company primarily derives its revenue
from two sources - renting its premises to traders and growers, and
providing storage, grading and packing services; and sale of apples
after procurement and storage in the controlled atmosphere storage
facility. Apple sales account for around 50% of the total revenue
and the company earns high margin by selling during the off season
beginning in April.
Liquidity: Stretched
Net cash accrual of INR5.5-9 crore per annum are expected over the
medium term, against debt obligation of INR5-6 crore per fiscal.
The working limit of INR12.75 crore was almost completely utilised
over the past 12 months.
Liquidity is supported by fund support from promoters in the form
of advances and unsecured loans in case of any exigency.
Current ratio is estimated to be moderate at 1.1 times as on March
31, 2023.
Outlook: Stable
CRISIL Ratings believes VFCCPL will continue to benefit from the
extensive experience of its promoters and established relationships
with clients.
Rating Sensitivity Factors
Upward factors
* Sustained increase in scale of operations by 40% and stable
operating margin, leading to higher cash accrual of more than INR10
crore
* Improvement in the working capital cycle
Downward factors
* Decline in net cash accrual to below INR4 crore on account of
decline in revenue or operating profit
* Further stretch in the working capital cycle
VFCCPL is a Srinagar-based company that provides controlled
atmosphere storage facility for apples, with an installed capacity
of 10,000 tonne per annum. The company is promoted and managed by
Mr Farooq Wani and Mr Tawheed Mir.
VELAMMAL MADURAI: CRISIL Assigns B+ Rating to INR125cr Loan
-----------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating to the
bank facilities of Velammal Madurai Educational Trust (VMET).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 34 CRISIL B+/Stable (Assigned)
Long Term Loan 36 CRISIL B+/Stable (Assigned)
Overdraft Facility 125 CRISIL B+/Stable (Assigned)
The rating reflects VMET's vulnerability to stringent regulations
and geographical concentration risk in revenue profile. These
weaknesses are partially offset by long track record of presence in
the region along-with extensive industry experience of its
management yielding healthy enrolment levels, healthy diversity
support the sustainability and also its healthy financial profile.
Key Rating Drivers & Detailed Description
Weakness:
* Vulnerability to stringent regulations: Establishment and
operations of educational institutions are regulated by various
governmental and quasi-governmental agencies, such as the
University Grants Commission (UGC), MCI, AICTE, CBSE, universities,
state governments etc. Each body has detailed procedures for
granting permission to set up institutions, and approvals need to
be renewed every three or five years. Any non-compliance will
result in cancellation of affiliation, license etc. leading to loss
of reputation for the college and revenue for the trust.
* Geographical concentration risk in revenue profile: VMET has
high geographic concentration in its revenue profile. Thus, any
slowdown in these regions may adversely affect the financial and
business performance
Strengths:
* Long track record of presence in the region along-with extensive
industry experience of its management yielding healthy enrolment
levels: The Trust is managed by Shri M.V. Muthuramalingam
along-with his three sons. The management have an experience of
over three decades in education services industry. This has given
them an understanding of the dynamics of the market and enabled
them to establish a strong brand image of “Velammal' which aids
in healthy occupancy levels in its both colleges and hospitals.
* Healthy diversity in revenue profile supports the scale and
sustainability: VMET is an established player in the market and in
operations for over three decades, the scale of operations remains
healthy. It operates a 150-seat medical college with a 2,100-bed
hospital, a nursing college, an allied health sciences college and
a trade centre in Madurai, Tamil Nadu. As, VMET revenue profile in
diversified, mitigating it to risk of slowdown in anyone
segments.
* Healthy financial profile: VMET capital structure have been at
healthy level due to lower reliance on external funds yielding
gearing of 0.8 and low total outside liabilities to adj tangible
net worth (TOL/ANW) of 0.91 for year ending on 31st March 2022.
VMET debt protection measures have also been at healthy level due
to leverage and healthy profitability. The interest coverage and
net cash accrual to total debt (NCATD) ratio are at 3.40 times and
0.18 times for fiscal 2022 .VMET debt protection measures are
expected to remain at similar level over medium term. Financial
discipline of the trust will remain a key monitorable.
Liquidity: Poor
Bank limit utilisation is moderate at around 86 percent for the
past twelve months ended May 2023. Cash accrual are expected to be
over INR70 crore which are sufficient against term debt obligation
of INR26.03 crore over the medium Liquidity is also supported by
moderate cash and bank balance of around INR21 crore as on March
31, 2023.
Outlook: Stable
CRISIL Ratings believes VMET will continue to benefit over the
medium term from its established position & management extensive
experience in the sector. CRISIL Ratings also believes that its
financial risk profile would be maintained over the period, backed
by healthy cash accrual and prudent financing of capex.
Rating Sensitivity Factors
Upward Factor
* Sustainable improvement in revenue while sustaining the
profitability at similar levels
* Increase in DSCR to over 1.75 time and decline in WC utilization
Downward factor
* De-growth in revenue and decline in profitability leading to
lower cash accruals
* Deterioration in debt service coverage ratio (DSCR) to less than
1.25 times
Set in 1993, VMET operates a 150 seat medical college with a
2,100-bed hospital, a nursing college, an allied health sciences
college and a trade centre in Madurai, Tamil Nadu.
The medical college in the name of 'Velammal Medical College
Hospital & Research Institute (VMCH)', the college commenced its
operations in 2013-14. It also operates a mega convention centre
under the name “Ida Scudder Auditorium” - on the Ring Road.
VMET is currently managed by Shri. M.V. Muthuramalingam –
Chairman along-with his three sons namely Shri. M V M Velmurugan,
Shri. M V M Velmohan and Shri. M V M Sasikumar.
VYAPARAVIJAYAM TRADES: CRISIL Moves B+ Rating to Not Cooperating
----------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of
Vyaparavijayam Trades & Agencies Private Limited (Vyaparavijayam)
to 'CRISIL B+/Stable Issuer Not Cooperating'
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 2 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with
Vyaparavijayam for obtaining NDS through letters/emails dated May
31, 2023, June 30, 2023 and July 31, 2023 among others, apart from
telephonic communication to seek the same. After non-receipt of NDS
for 2 consecutive months, we also sent a letter dated July 24, 2023
reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of Vyaparavijayam to confirm timely debt
servicing during these months, but awaits any feedback.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive NDSs from Vyaparavijayam, which restricts
CRISIL Ratings' ability to take a forward looking view on the
entity's credit quality. Further, non-sharing of NDS by issuers may
reflect operational issues faced by issuers in some cases. On the
other hand, it may be a beginning of a general non-cooperation and
may extend to non-submission of other information.
CRISIL Ratings believes that rating action on Vyaparavijayam is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the rating on bank facilities of
Vyaparavijayam migrated to 'CRISIL B+/Stable Issuer Not
Cooperating'
Vyaparavijayam was incorporated in the 1987 by the district forum
of one of the largest associations of Kerala, Vyapari Vyavasayi,
which is involved in trading business in the Trichur and Palakkad
districts. The initial 10 years, the company operated in shares and
hire purchase business, and the gold loan proportion was very
miniscule at that point in time. As on March 31, 2022, the
outstanding portfolio of the company stood at INR6.5 crore compared
with 8.0 crore as on March 31, 2022, out of which gold loan
contributed 57% and business loans 43% to the overall portfolio.
=================
I N D O N E S I A
=================
JAPFA COMFEED: S&P Affirms 'B+' LongTerm ICR, Outlook Negative
--------------------------------------------------------------
S&P Global Ratings, on Aug. 10, 2023, affirmed its 'B+' long-term
issuer credit and issue ratings on Japfa Comfeed Indonesia Tbk.
PT.
The negative outlook reflects S&P's uncertainty about the timely
recovery of EBITDA margin over the next six to 12 months, due to
volatile industry conditions. Rising short-term maturities could
further erode the liquidity buffer.
S&P expects the EBITDA margins of Japfa Comfeed and its
Singapore-based parent Japfa Ltd. will improve, albeit modestly,
over the next six to 12 months. S&P also expects working capital
outflow to moderate toward the end of 2023.
The deteriorating credit quality of parent Japfa Ltd. exacerbates
the rating pressure on Japfa Comfeed. In S&P's view, the credit
quality of Japfa Ltd. and Japfa Comfeed are closely linked. Japfa
Comfeed contributes 80%-90% of the group's EBITDA and 65%-70% of
its debt.
S&P expects the recovery in Japfa Ltd.'s funds from operations
(FFO) cash interest coverage to above the downgrade threshold of 3x
will take longer than for Japfa Comfeed. In Japfa Ltd.'s case,
recovery is likely in 2024 at the earliest. In S&P's base case,
Japfa Ltd.'s FFO cash interest coverage ratio will decrease to
1.5x-1.7x in 2023, before improving to 3.0x-3.2x in 2024. Japfa
Ltd.'s financial metrics are weaker than those of Japfa Comfeed,
because of concurrent weakness in Japfa Ltd.'s animal protein other
(APO) segment.
Japfa Ltd's capital structure has weakened due to its higher
proportion of short term debt, which has shortened its weighted
average debt maturity to 1.9 years as of June 30, 2023. The shorter
debt maturity profile is driven by both Japfa Comfeed, and the
sizable short-term working capital loans to fund its APO business
and trading subsidiary, Annona Pte. Ltd.
Furthermore, the liquidity buffer of Japfa Ltd. is eroding due to
high short-term debt and structural subordination risk. The bulk of
the group's cash flow is at the Japfa Comfeed level. This cash is
not readily accessible because the company is listed. About 44% of
the short-term debt, excluding Japfa Comfeed's debt, is at the
parent level. The wider group has multi-year committed debt
facilities. S&P estimates the parent's cash and nonutilized
committed banking lines will cover debt due in the next 12 months,
although the liquidity buffer is minimal.
While Japfa Comfeed's EBITDA margin is likely to improve modestly,
industry uncertainty may slow the recovery in credit ratios. S&P
estimates Japfa Comfeed's FFO cash interest coverage ratio will
improve to about 3x by the end of 2023, from about 2.2x during the
first half of this year. The company has only a thin credit buffer
compared with our downgrade trigger of 3x. Poultry industry
conditions remain challenging due to elevated input costs and
volatile poultry prices. Furthermore, there are uncertainties over
whether Japfa Comfeed can continue to pass on input cost hikes.
Japfa Comfeed's rising debt and slender EBITDA margins will slow
the recovery in credit ratios. S&P estimates the company's ratio of
FFO to debt will deteriorate to about 13.5% in 2023, before
improving to 18%-20% in 2024.
S&P said, "We anticipate the EBITDA margin will inch up to 6%-7% by
the end of 2023, from 5.2% in the first half, possibly supported by
more favorable poultry prices. In our view, the Indonesian
government may adopt a more proactive approach to support poultry
prices, given the eased inflationary pressure." Since April,
Indonesia's government has implemented two rounds of culling to
shore up poultry prices. The average broiler price per kilogram
surged by about 20% in the second quarter, driven by the seasonal
demand.
Its rising level of short-term maturities has weakened Japfa
Comfeed's capital structure. Japfa Comfeed's weighted-average debt
maturity profile shortened to about 2.1 years as of June 30, 2023,
from 2.7 years by end of December 2022, as a result of its high
proportion of short-term debt. The company's short-term maturities
have been rising over the past six quarters to support working
capital needs. These have been heavy due to high raw material
costs, and the procurement season during the first half of 2023. As
of June 30, 2023, its short-term maturities reached Indonesian
rupiah (IDR) 6.7 trillion, a surge of IDR2.3 trillion from the end
of December 2022.
S&P said, "We do not anticipate a significant improvement in the
debt maturity profile over the next 12-18 months. The working
capital requirement could remain higher than two years ago due to
the prospect of elevated raw material costs given the ongoing
Russia-Ukraine conflict. This is likely to lead to persistently
high working capital loans. This is despite our factoring in a
possible reduction of IDR800 billion–IDR1 trillion short-term
loans in the second half of 2023, as a result of reduced working
capital requirements post the procurement season.
"We do not foresee imminent refinancing and liquidity risk despite
the elevated short-term maturities. About 90% of Japfa Comfeed's
short-term maturities consist of working capital loans. Japfa
Comfeed has a track record of rolling over these loans, even during
tough industry conditions such as the recent pandemic, supported by
established banking relationships.
"We understand that the company is actively working on refinancing
the existing IDR3 trillion Club Deal committed facility that will
expire in August 2024. We anticipate Japfa Comfeed's ratio of
liquidity sources over uses will improve to around 1x from 0.7x, if
the new committed facilities materialize."
Besides the IDR1.7 trillion unused committed facilities as of June
30, 2023, the company has over IDR500 billion of unused and
uncommitted facilities to support liquidity if needed.
Nevertheless, a continuing reliance on short-term funding may
exacerbate the liquidity risk if industry conditions worsen.
The negative outlook on Japfa Comfeed reflects uncertainties over
the recovery in the Japfa group's EBITDA margin over the next six
to 12 months. This may hinder the timely recovery of credit ratios
above the downgrade thresholds. The outlook also reflects the
group's increasing reliance on short-term debt which could amplify
liquidity risk.
S&P may lower the rating on Japfa Comfeed if it no longer expect
its parent Japfa Ltd.'s operating margin and liquidity profile to
improve. This could occur if:
-- Japfa Ltd.'s EBITDA margin falls below 8.5% and operating cash
flow fails to recover materially over the next six to 12 months.
This would cause FFO cash interest coverage to remain below 3.0x,
or the FFO-to-debt ratio to fail to recover toward 20%.
-- The liquidity profile weakens such that S&P expects the ratio
of sources to uses of liquidity to stay below 1x with no sign of
improvement. This could happen if there is further depletion of
cash, or an inability to roll over working capital loans or
maintain multi-year committed credit facilities.
S&P said, "We may revise the outlook on Japfa Comfeed to stable if
we have reason to expect its parent Japfa Ltd. will sustain its FFO
cash interest coverage above 3x and FFO-to-debt ratio above 20%. We
believe this will likely stem from more favorable industry
conditions such that Japfa Ltd.'s EBITDA margin will remain above
8.5%."
A revision to stable on the outlook would also require Japfa Ltd.
to moderate the trend of rising short-term debt and maintain its
ratio of sources to uses of liquidity at about 1x.
TITAN INFRA: $20MM Bank Debt Trades at 19% Discount
---------------------------------------------------
Participations in a syndicated loan under which Titan Infra Energy
PT is a borrower were trading in the secondary market around 80.9
cents-on-the-dollar during the week ended Friday, August 11, 2023,
according to Bloomberg's Evaluated Pricing service data.
The $20 million facility is a Term loan that is scheduled to mature
on February 26, 2034. The amount is fully drawn and outstanding.
PT Titan Infra Energy operates as an energy infrastructure and
logistic company. The Company offers exploration, construction,
production, hauling, barging, and transshipment services. Titan
Infra Energy serves customers worldwide. The Company's country of
domicile is Indonesia.
TITAN INFRA: $430MM Bank Debt Trades at 19% Discount
----------------------------------------------------
Participations in a syndicated loan under which Titan Infra Energy
PT is a borrower were trading in the secondary market around 80.9
cents-on-the-dollar during the week ended Friday, August 11, 2023,
according to Bloomberg's Evaluated Pricing service data.
The $430 million facility is a Term loan that is scheduled to
mature on February 26, 2034. The amount is fully drawn and
outstanding.
PT Titan Infra Energy operates as an energy infrastructure and
logistic company. The Company offers exploration, construction,
production, hauling, barging, and transshipment services. Titan
Infra Energy serves customers worldwide. The Company's country of
domicile is Indonesia.
=====================
N E W Z E A L A N D
=====================
GLAMOUR GIRLS: Court to Hear Wind-Up Petition on Aug. 31
--------------------------------------------------------
A petition to wind up the operations of The Glamour Girls
Christchurch Limited will be heard before the High Court at
Christchurch on Aug. 31, 2023, at 10:00 a.m.
Colleen Ann Stokes filed the petition against the company on July
10, 2023.
The Petitioner's solicitor is:
Roger Stewart Brown
Your Legal, Solicitors
78B East Belt
PO Box 306
Rangiora
HILL LUMBER: Court to Hear Wind-Up Petition on Sept. 1
------------------------------------------------------
A petition to wind up the operations of Hill Lumber Limited will be
heard before the High Court at Auckland on Sept. 1, 2023, at 10:45
a.m.
The Commissioner of Inland Revenue filed the petition against the
company on July 18, 2023.
The Petitioner's solicitor is:
Cloete Van Der Merwe
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
INSTALL PRO: Waterstone Insolvency Appointed as Receivers
---------------------------------------------------------
Damien Grant and Adam Botterill of Waterstone Insolvency on Aug. 4,
2023, were appointed as receivers of Install Pro Limited and
Antonio Tainui Opai.
The liquidators may be reached at:
Waterstone Insolvency
16 Piermark Drive
Rosedale
Auckland 0632
KAPITI COAST: Creditors' Proofs of Debt Due on Aug. 25
------------------------------------------------------
Creditors of Kapiti Coast Scaffolding Limited are required to file
their proofs of debt by Aug. 25, 2023, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Aug. 3, 2023.
The company's liquidators are:
John Marshall Scutter
Fervor Limited
Level 1, 17–19 Seaview Road
Paraparaumu Beach
OLIVIANZ NEWMARKET: Creditors' Proofs of Debt Due on Sept. 1
------------------------------------------------------------
Creditors of Olivianz Newmarket Limited are required to file their
proofs of debt by Sept. 1, 2023, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Aug. 4, 2023.
The company's liquidators are:
Steven Khov
Kieran Jones
Khov Jones Limited
PO Box 302261
North Harbour
Auckland 0751
=================
S I N G A P O R E
=================
BUILDERS HUB: Commences Wind-Up Proceedings
-------------------------------------------
Members of Builders Hub Pte Ltd on July 28, 2023, passed a
resolution to voluntarily wind up the company's operations.
The company's liquidators are:
Saw Meng Tee
Ong Shyue Wen
EA Consulting Pte Ltd
(a subsidiary of EisnerAmper PAC)
1 North Bridge Road
#23-05 High Street Centre
Singapore 179094
GASTRONOMICA PTE: Commences Wind-Up Proceedings
-----------------------------------------------
Members of Gastronomica Pte Ltd on Aug. 4, 2023, passed a
resolution to voluntarily wind up the company's operations.
The company's liquidators are:
Saw Meng Tee
Ong Shyue Wen
EA Consulting Pte Ltd
(a subsidiary of EisnerAmper PAC)
1 North Bridge Road
#23-05 High Street Centre
Singapore 179094
HIN LEONG: Civil Trial Against Founder and His Two Children Starts
------------------------------------------------------------------
The Straits Times reports that the civil trial of lawsuits brought
by the liquidators of Hin Leong and HSBC Holdings against the oil
trading firm's embattled founder Lim Oon Kuin, better known as O.K.
Lim, and his two children began on Aug. 10 in the High Court.
ST relates that the liquidators - Mr. Goh Thien Phong and Mr. Chan
Kheng Tek - are seeking a court order to force the 81-year-old
former oil tycoon, his son Evan Lim Chee Meng and daughter Lim Huey
Ching to repay US$3.5 billion (SGD4.7 billion) in alleged debt and
US$90 million in dividends they allegedly paid themselves, even
though their oil trading firm was insolvent.
In opening statements filed on behalf of the liquidators, Senior
Counsel Cavinder Bull of Drew & Napier said the Lim family
"dishonestly portrayed Hin Leong as a profitable, solvent company"
by fabricating swaps trading gains to hide accumulated trading and
other losses, creating fictitious trading profits, manipulating
accounts through improper accounting entries and overstating the
firm's inventory, ST relays.
HSBC Holdings, calling itself a "victim of brazen fraud", alleged
the defendants and the elder Lim's former personal assistant, Madam
Seng Hui Choo, "fabricated non-existent transactions" to get the
bank to disburse US$111.7 million (SGD150 million) to Hin Leong,
according to ST.
ST relates that HSBC, which is represented by Senior Counsel Sarjit
Singh Gill of Shook Lin & Bok, said in its opening statements that
there were two discounting applications that had been fraudulently
made by Hin Leong to obtain financing from the bank. "These are not
inadvertent errors", as portrayed by the defendants, Mr. Gill told
the court.
More than 60 witnesses are expected to be called in by the
plaintiffs to testify in the trial, which is scheduled to run about
180 days. The present tranche of hearing dates will run till Nov.
16, the report notes.
ST says the liquidators also alleged that the Lim family had
breached their fiduciary duties as directors and engaged in
fraudulent trading.
Hin Leong sustained net losses of about US$808.2 million in futures
and swaps trading from fiscal years 2010 to 2020, which "were
systematically concealed in Hin Leong's audited financial
statements by . . . the creation of fictitious swaps trades", the
liquidators, as cited by ST, said.
They also "located fabricated swaps trades tickets (there are in
evidence a staggering 837), contracts and invoices relating to
fictitious swaps trades, as well as forged banking documents such
as inward remittance advices, and bank account statements".
"The Lim family's fingerprints are all over this massive body of
evidence. O.K. Lim and Evan Lim's names were stamped as approver
and/or transactor on all the fabricated swaps trade tickets,"
according to the liquidators.
According to the report, Senior Counsel Davinder Singh and Mr.
Jaikanth Shankar of Davinder Singh Chambers, who are representing
the elder Lim, said in his opening statements that Hin Leong must
show that their client's alleged breaches of fiduciary duties
caused it to suffer losses of US$3.5 billion.
But Hin Leong "will not be able to do that because the US$3.5
billion is not a 'loss' that (it) suffered, but are liabilities
that (it) allegedly incurred and are due to creditors . . . The
loss is, therefore, the creditors'," they said.
According to the elder Lim's opening statements, the evidence of
Hin Leong employees who claim to have been instructed by him "to
create fictitious profits, overstate Hin Leong's accounts and/or
apply for financing on false premises should not be given weight
because it is riddled with inconsistencies and not supported by the
contemporaneous documents," ST relays.
Furthermore, Hin Leong's "accounting records, management accounts
and bank statements are incomplete, the creditors' proofs of debt
all set out alleged debts as at different dates".
But Mr. Bull told the court that "certain documents and retention
policies were deleted or removed from company servers".
According to the liquidators, Hin Leong's former assistant IT
manager Lim Chin had told them that the elder Lim instructed that
accounting records earlier than Oct. 31, 2016, were to be deleted,
ST relates.
"To achieve permanent deletion, Lim Chin instructed systems
engineer Siow Kwee Keong to delete the IT system's retention
policies.
"The necessary inference is that the Lim family had purged these
files in a last-ditch attempt to wipe out evidence before they had
to turn Hin Leong over to the (then) interim judicial managers,"
the liquidators said.
Lawyers for the elder Lim also claim Madam Seng and Ms Katherine
Ong, a former senior accounts executive in Hin Leong's treasury
department, who have been subpoenaed by the liquidators to testify
that they were instructed by the elder Lim to prepare fictitious
documents, "have no credibility," the report relays.
Both Madam Seng and Ms Ong have shown themselves to be
"untrustworthy witnesses" in a criminal trial involving the elder
Lim that began in April, according to his opening statements.
Among other things, Madam Seng admitted to lying to a Commercial
Affairs Department investigator in June 2020 about her recollection
of circumstances relating to a transaction that is the subject of
Lim's criminal charges.
"Ms. Ong, after she completed her evidence in the criminal trial,
contacted other witnesses . . . who had not taken the stand yet,
discussed her evidence with them . . . and coached them on what to
say in an attempt to ensure that . . . there would consistency in
their evidence".
ST notes that the elder Lim, who faces a total of 130 charges
involving US$2.7 billion in alleged fraudulent loans disbursed,
pleaded not guilty in April to three charges prosecutors proceeded
on – two cheating charges and one of instigating forgery for the
purpose of cheating.
The first tranche of Lim's criminal trial concluded on July 19,
while the next tranche is expected to start in late October, the
report adds.
About Hin Leong Trading
Singapore-based Hin Leong Trading (Pte.) Ltd. provided petroleum
products and transportation services. The Company offered oil,
lubricants, grease, and diesel products, as well grants storage,
terminalling, trucking, and marine logistics services. Hin Leong
Trading served customers globally.
Hin Leong Trading and shipping unit Ocean Tankers (Pte.) Ltd. filed
for court protection from creditors on April 17, 2020, as the
former struggles to repay debts of almost US$4 billion.
Hin Leong posted a positive equity of US$4.56 billion and net
profit of US$78 million in the period ended October 31, 2019,
according to the people, who asked not to be identified as the
matter is sensitive, Bloomberg News reported.
But Hin Leong told its creditors that total liabilities reached
US$4.05 billion as of early April, while assets were just US$714
million, leaving a hole of at least US$3.34 billion, according to
screenshots of the presentation to a group of bankers seen by
Bloomberg News.
The balance sheet of the company showed no equity at all as of
April 9, 2020, and warned that "figures obtained from the company
are subject to verification," Bloomberg News added.
On April 27, 2020, the Company was granted interim judicial
management by the Singapore High Court. Goh Thien Phong and Chan
Kheng Tek of PricewaterhouseCoopers Advisory Services (PwC) have
been appointed as interim judicial managers. Ernst & Young (EY),
has been appointed interim judicial manager for Ocean Tankers.
On March 8, 2021, judicial managers Goh Thien Phong and Chan Kheng
Tek of PwC were appointed liquidators of Hin Leong.
The judicial managers had applied for Hin Leong to be wound up
after three potential bidders walked away from a deal to buy Hin
Leong and two related companies as a combined entity, according to
The Straits Times.
KGGD PTE: Court Enters Wind-Up Order
------------------------------------
The High Court of Singapore entered an order on Aug. 4, 2023, to
wind up the operations of KGGD Pte. Ltd.
Maybank Singapore Limited has filed the petition against the
company.
The company's liquidators are:
Gary Loh Weng Fatt
Leow Quek Shiong
c/o BDO Advisory Pte Ltd
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
SHADHIN PTE: Creditors' Proofs of Debt Due on Sept. 11
------------------------------------------------------
Creditors of Shadhin Pte. Ltd. are required to file their proofs of
debt by Sept. 11, 2023, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Aug. 3, 2023.
The company's liquidators are:
Lim Soh Yen
Tan Suah Pin
c/o 133 New Bridge Road
#24-01/02 Chinatown Point
Singapore 059413
SWISSCO ASIA: Creditors' Meetings Set for Aug. 30
-------------------------------------------------
Swissco Asia Pte Ltd, which is in creditors' voluntary liquidation,
will hold a meeting for its members and creditors on Aug. 30, 2023,
at 1:00 p.m. and 1:30 p.m., respectively, at One Raffles Quay,
North Tower Level 18, in Singapore.
Agenda of the meeting includes:
a. to receive receive the Liquidator’s report on the progress
of the liquidation of the Company pursuant to Section 307(1)
of the Companies Act; and
b. Any other matters.
The company's liquidator is:
Aaron Loh Cheng Lee
c/o One Raffles Quay
North Tower, Level 18
Singapore 048583
*********
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.
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