/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/230817.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, August 17, 2023, Vol. 26, No. 165 Headlines A U S T R A L I A M R CAGNEY: First Creditors' Meeting Set for Aug. 21 NATIONAL INSULATION: First Creditors' Meeting Set for Aug. 21 NON ALCOHOLIC DRINKS: Second Creditors' Meeting Set for Aug. 21 OG EMPLOYEES: First Creditors' Meeting Set for Aug. 22 PINT CLUB: Second Creditors' Meeting Set for Aug. 21 PROGRESS TRUST 2023-2: S&P Gives Prelim. BB(sf) Rating on E Notes WESTERN LUXURY: Perth Builder Goes Into Liquidation C H I N A CHINA EVERGRANDE: Unit to Issue New Shares in Restructuring Plan CHINDATA GROUP: Moody's Puts 'Ba2' CFR on Review for Downgrade COUNTRY GARDEN: Halts Trading of USD2.2 Billion of Onshore Bonds COUNTRY GARDEN: Moody's Assigns Ba1 CFR & Alters Outlook to Neg. COUNTRY GARDEN: Woes Raise Fears of REIT Defaults, J.P. Morgan Says ZHONGZHI ENTERPRISE: Under Probe Over Missed Payment H O N G K O N G TELEVISION BROADCASTS: To Receive Up to HK$700MM Loans I N D I A ALBANNA ENGINEERING: CRISIL Keeps D Ratings in Not Cooperating ASIAN IMPEX: CARE Keeps D Debt Rating in Not Cooperating Category BILTECH BUILDING: CARE Keeps D Debt Rating in Not Cooperating CHAHAL SPINTEX: CRISIL Keeps D Debt Ratings in Not Cooperating COMPUAGE INFOCOM: CARE Cuts Rating in INR510cr LT Loan to D CONTINUUM ENERGY: Fitch Assigns First Time 'B+' LongTerm IDR CONTINUUM GREEN: Fitch Assigns First Time 'B+' IDR, Outlook Pos. CONTINUUM GREEN: S&P Assigns 'B+' LongTerm ICR, Outlook Positive DR. M N TANDON: CARE Keeps C Debt Rating in Not Cooperating G.K. SALES: CARE Keeps D Debt Rating in Not Cooperating GLOBAL HEALTH: CRISIL Keeps D Debt Ratings in Not Cooperating GYAN SHAKTI: CRISIL Keeps D Debt Rating in Not Cooperating HOWRAH MILLS: CRISIL Keeps D Debt Ratings in Not Cooperating ICOMM TELE: ICRA Withdraws D Rating on INR452.50cr Term Loan INDIA CARTONS: CARE Keeps D Debt Rating in Not Cooperating JOSEPH LESLIE: ICRA Keeps B+ Debt Ratings in Not Cooperating KRISHNA BUILDCON: CRISIL Keeps D Debt Ratings in Not Cooperating MANIKYAM POULTRY: CARE Keeps D Debt Rating in Not Cooperating MAXWELL HOSPITAL: ICRA Withdraws B+ Rating on INR60cr LT Loan MEHTA BROTHERS: ICRA Keeps B+ Debt Ratings in Not Cooperating NARAYAN FRUITS: CARE Keeps C Debt Rating in Not Cooperating NEHA INTERNATIONAL: CARE Keeps D Debt Ratings in Not Cooperating RAJ OVERSEAS: CARE Keeps C Debt Rating in Not Cooperating RAJA COTTON: CARE Keeps D Debt Rating in Not Cooperating RAMSONS ORGANICS: CARE Cuts Rating in INR5.14cr LT Loan to C RAVICHANDRA TEXTILES: CRISIL Keeps D Ratings in Not Cooperating SAMBHAV EXIM: CARE Keeps D Debt Ratings in Not Cooperating SATYA SUBAL: ICRA Keeps D Debt Ratings in Not Cooperating SIDDHI PAPER: CARE Lowers Rating on INR7cr LT Loan to C SIPANI PROPERTIES: CRISIL Keeps D Debt Ratings in Not Cooperating THERDOSE PHARMA: ICRA Lowers Rating on INR9.53cr LT/ST Loan to D VIJAYA LAKSHMI: ICRA Withdraws B+ Rating on INR45cr LT Loan N E W Z E A L A N D COASTAL LOG: Creditors' Proofs of Debt Due on Sept. 5 ENIGMA CAFE: Creditors' Proofs of Debt Due on Sept. 4 KAUKAPAKAPA VILLAGE: Court to Hear Wind-Up Petition on Sept. 15 SAINT LIMITED: Creditors' Proofs of Debt Due on Sept. 5 WISHBONE: Cafe Chain Wishbone Goes Into Liquidation XTREME FLOORING: Court to Hear Wind-Up Petition on Aug. 24 S I N G A P O R E FEUDALITE TRADING: Court Enters Wind-Up Order HUMAN CAPITAL: Court to Hear Wind-Up Petition on Sept. 8 PACE ENTERPRISE: Creditors' Meetings Set for Aug. 29 URBAN FARM: Creditors' Proofs of Debt Due on Sept. 14 YONGNAM HOLDINGS: Court Enters Judicial Management Order S R I L A N K A SRI LANKA: IMF Staff to Visit in September for 1st Programme Review - - - - - ================= A U S T R A L I A ================= M R CAGNEY: First Creditors' Meeting Set for Aug. 21 ---------------------------------------------------- A first meeting of the creditors in the proceedings of M R Cagney Pty Ltd will be held on Aug. 21, 2023, at 10:00 a.m. at the offices of Mcleods Accounting at Level 9, 300 Adelaide Street in Brisbane and via virtual meeting technology. Bill Karageozis of Mcleods Accounting was appointed as administrator of the company on Aug. 2, 2023. NATIONAL INSULATION: First Creditors' Meeting Set for Aug. 21 ------------------------------------------------------------- A first meeting of the creditors in the proceedings of National Insulation Pty Ltd will be held on Aug. 21, 2023, at 2:30 p.m. at the offices of Jirsch Sutherland at Suite 2, Level 14, 383 Kent Street in Sydney and via virtual meeting. Andrew John Spring and Peter John Moore of Jirsch Sutherland were appointed as administrators of the company on Aug. 9, 2023. NON ALCOHOLIC DRINKS: Second Creditors' Meeting Set for Aug. 21 --------------------------------------------------------------- A second meeting of creditors in the proceedings of The Non Alcoholic Drinks Co Pty Ltd has been set for Aug. 21, 2023 at 10:30 a.m. at the offices of Jirsch Sutherland at Suite 2, Level 14, 383 Kent Street in Sydney and via 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. Andrew John Spring and Peter John Moore of Jirsch Sutherland were appointed as administrators of the company on July 17, 2023. OG EMPLOYEES: First Creditors' Meeting Set for Aug. 22 ------------------------------------------------------ A first meeting of the creditors in the proceedings of OG Employees Nsw Pty Ltd will be held on Aug. 22, 2023, at 12:00 p.m. Vincents at Level 14, 25 Martin Place in Sydney and via virtual meeting. Henry McKenna and Nick Combis of Vincents were appointed as administrators of the company on Aug. 10, 2023. PINT CLUB: Second Creditors' Meeting Set for Aug. 21 ---------------------------------------------------- A second meeting of creditors in the proceedings of Pint Club Incorporated has been set for Aug. 21, 2023 at 10:30 a.m. via virtual meeting through teleconference. 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. 20, 2023 at 5:00 p.m. S G Reid and S R Sellahewa of Rodgers Reidy were appointed as administrators of the company on July 13, 2023. PROGRESS TRUST 2023-2: S&P Gives Prelim. BB(sf) Rating on E Notes ----------------------------------------------------------------- S&P Global Ratings assigned its preliminary ratings to six classes of prime residential mortgage-backed securities (RMBS) to be issued by Perpetual Trustee Co. Ltd. as trustee for Progress 2023-2 Trust. Progress 2023-2 Trust is a securitization of prime residential mortgages originated by AMP Bank Ltd. S&P said, "The preliminary ratings reflect our view of the credit risk of the underlying collateral portfolio and the credit support provided to each class of rated notes are commensurate with the ratings assigned. Credit support is provided by subordination, lenders' mortgage insurance (LMI), and excess spread, if any. Our assessment of credit risk considers AMP Bank's underwriting standards and approval process, which are consistent with industrywide practices, the servicing quality of AMP Bank, and the support provided by the LMI policies on 7.7% of the portfolio. "We believe the rated notes can meet timely payment of interest and ultimate payment of principal under the rating stresses. Key rating factors are the level of subordination provided, the LMI cover, the interest-rate swap, the mechanism for trapping excess spread into an excess reserve, the provision of a liquidity reserve, and the provision of an income reserve--funded by AMP Bank at closing to cover extraordinary expenses--sized at a level consistent with the ratings. All rating stresses are made on the basis that the trust does not call the notes at or beyond the first call-option date, and that all rated notes must be fully redeemed via the principal waterfall mechanism under the transaction documents. "Our ratings also consider the counterparty exposure to Australia and New Zealand Banking Group Ltd. and MUFG Bank Ltd. as bank account providers and to BNP Paribas as fixed-rate swap provider. The fixed-rate swap will be provided to hedge the fixed-rate mortgage loans and the floating-rate obligations on the notes. The transaction documents include downgrade remedies consistent with our counterparty criteria. The legal structure of the trust is established as a special-purpose entity and meets our criteria for insolvency remoteness." Preliminary Ratings Assigned Progress 2023-2 Trust Class A, A$460.00 million: AAA (sf) Class AB, A$20.65 million: AAA (sf) Class B, A$7.55 million: AA (sf) Class C, A$4.95 million: A (sf) Class D, A$2.35 million: BBB (sf) Class E, A$2.30 million: BB (sf) Class F, A$2.20 million: Not rated WESTERN LUXURY: Perth Builder Goes Into Liquidation --------------------------------------------------- The Australian reports that Perth builder Western Luxury Homes Pty Ltd was placed into liquidation on Aug. 11, according to a notice published by Australian Securities and Investments Commission (ASIC). The Australian relates that the failing business has now been handed over to RSM liquidators Travis Kukura and Jerome Hall Mohen who will take charge of finding a solution to the company's financial woes. It is understood 12 homes were left incomplete when the building company folded, with signed contracts dating back to mid-2020. Clients are being urged to contact their home indemnity insurance provider, QBE Insurance, following the shock collapse, the report says. The failed business joins a long line of companies going belly up in Western Australia. Building and Energy said an average of 22 registered residential building contractors become insolvent every year in the state. Western Luxury Homes joins the ranks of other failed building companies, including Modco Residential, Slatter Group, WA Housing Group, Flexible Homes, Individual Developments, Hamlen Homes and City Residence, The Australian notes. ========= C H I N A ========= CHINA EVERGRANDE: Unit to Issue New Shares in Restructuring Plan ---------------------------------------------------------------- Reuters reports that China Evergrande Group said on Aug. 14 its listed electric-vehicle arm has agreed to issue new shares to certain subscribers to ease loan burden and improve liquidity as part of its restructuring proposal. Under the terms, China Evergrande New Energy Vehicle Group (NEV) will issue an aggregate of 5.44 billion new shares in the unit for HK$3.84 per NEV share, pooling an amount of HK$20.89 billion ($2.67 billion), Reuters relates. According to Reuters, the fresh issue is intended to pay off loans of NEV due against China Evergrande and its founder Hui Ka Yan, and his unit Xin Xin (BVI) Ltd, among others. About 4.18 billion NEV shares to be issued to China Evergrande will be deposited into custody accounts under the mandatory exchangeable bonds into NEV shares (MEB) as well as the NEV Linked New Notes A2 and NEV Linked New Notes C2 to be issued by the company to its creditors. The 690.1 million shares to be issued to Evergrande's founder will be deposited into a custody account and used as exchange property for MEB. In a separate announcement, NEV said it has agreed to issue 6.18 billion new shares to U.S.-listed NWTN for a total consideration of HK$3.89 billion, implying a subscription price of HK$0.6297 per share, Reuters reports. To aid business recovery, NWTN (Zhejiang) Automobile and Evergrande New Energy Vehicle (Tianjin) signed a support deal for interest-free funding of RMB600 million, Reuters relates. This funding will be used for the research and development, manufacturing, and sales services of vehicles under the group. After completion, NWTN will hold about 27.50% stake in NEV. Assuming the completion of NEV loan conversion, the shareholding interest of China Evergrande Group in NEV will be diluted to 46.86% and NEV will cease to be a non-wholly owned unit, adds Reuters. About China Evergrande China Evergrande Group is an integrated residential property developer. The Company, through its subsidiaries, operates in property development, investment, management, finance, internet, health, culture, and tourism markets. Evergrande had CNY1.97 trillion (US$311 billion) of liabilities at the end of June 2021. Once China's biggest developer by sales, Evergrande fell into distress as cash dried up and the group overstretched itself on borrowings and ventures into car manufacturing. Evergrande hired outside financial advisers Houlihan Lokey and Admiralty Harbour Capital in September 2021 to engage with creditors soon after it ran into a liquidity squeeze. It has since worked with more advisers in the past two months by turning to China International Capital Corp, BOCI Asia and Zhong Lun Law Firm on its debt workout plan. As reported in the Troubled Company Reporter-Asia Pacific in October 2022, Moody's Investors Service has withdrawn China Evergrande Group's (Evergrande) corporate family rating and senior unsecured ratings, the CFRs of Hengda Real Estate Group Company Limited and Tianji Holding Limited, and Scenery Journey Limited's backed senior unsecured ratings. CHINDATA GROUP: Moody's Puts 'Ba2' CFR on Review for Downgrade -------------------------------------------------------------- Moody's Investors Service has placed Chindata Group Holdings Limited's Ba2 corporate family rating on review for downgrade. Previously, the outlook was stable. "The review of Chindata's rating for downgrade reflects Moody's view that the company's announced privatization is likely to result in a pro forma capital structure that has meaningfully higher leverage, reduced corporate transparency as a private entity and uncertainties around its future financial policies and business strategy," says Shawn Xiong, a Moody's Vice President and Senior Analyst. While the exact details relating to the financing of this transaction have not been disclosed, Chindata's debt burden could rise meaningfully as a result of the privatization. RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING The rating action follows the company's announcement on August 11 [1], that it has entered into a definitive agreement for its sponsor, Bain Capital and other investors to acquire all of the outstanding shares of the company. The transaction is expected to be completed during the fourth quarter of 2023 or the first quarter of 2024, subject to customary closing conditions. The company announced that the transaction will be funded through a combination of cash contribution from Bain Capital or their affiliates, debt financing provided by Shanghai Pudong Development Bank Co., Ltd. Lujiazui Sub-branch and Industrial Bank Co., Ltd. Shanghai Branch, as well as an equity rollover by some of the existing shareholders. Moody's review will focus on Chindata's financial strategy, pro forma capital structure, liquidity profile, and future operating and growth strategy. While the company has not announced the exact capitalization plans associated with the pending privatization or disclosed how much equity funding will be contributed, the rating review reflects Moody's expectation of a pro forma capital structure that will carry a higher leverage. Moody's expects Chindata's revenue to grow in the range of 30% to 35% over the next 12-18 months, primarily driven by increasing capacity and a continued strong utilization ratio. The principal methodology used in this rating was REITs and Other Commercial Real Estate Firms published in September 2022. Established in 2015 and headquartered in Beijing, China, Chindata Group Holdings Limited owns, develops and operates mission-critical data centers that are leased to large cloud operators, technology companies and corporate clients. As of the end of March 2023, Chindata operated 21 data centers in China, three in Malaysia and one in India. COUNTRY GARDEN: Halts Trading of USD2.2 Billion of Onshore Bonds ---------------------------------------------------------------- Yicai Global reports that shares in Country Garden plummeted on Aug. 14 after China's largest private real estate developer said it has suspended the trading of 11 of its Chinese yuan-denominated bonds worth CNY15.7 billion (USD2.2 billion) from Aug. 14 as the struggling firm enters debt restructuring. Country Garden will hold a bond holders' meeting soon regarding bond redemption and plans to steadily implement solutions to resolve risks, the Foshan, southern Guangdong province-based firm said on Aug. 12, Yicai relates. According to Yicai, the company has not suspended trading of its offshore bonds, indicating that the developer is likely to first extend the deadlines of its yuan-denominated bonds as the bulk of its debt is onshore, industry insiders said. Of the 11 bonds, three of them, worth a total of CNY7.3 billion (USD1 billion) will mature next month. Country Garden also has 20 offshore bonds totaling USD10 billion, per data provider Wind Information, Yicai relays. It was unable to pay the interest on two of them that were due on Aug. 7, although there is a grace period of 30 days for bond interest payments to be made. The two bonds are listed on the Singapore Exchange and are each worth USD500 million. They will mature on Feb. 6, 2024 and Aug. 6, 2030. Yicai notes that 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 liquidity pressure, a company insider said earlier. The firm is bracing for losses of up to CNY55 billion (USD7.5 billion) in the first half mainly because of poor sales and losses due to fluctuations in the foreign exchange rate, it said last week, relates Yicai. Country Garden will take firm action to ensure the on-time delivery of pre-sold homes, improve liquidity and ensure that its business is running in an orderly way, Yicai relays citing an open letter signed by Chairwoman Yang Huiyan and President Mo Bin on Aug. 11. It will spare no effort to protect the rights and interests of its clients, investors and partners. 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 to Caa1 from B1 and its senior unsecured rating to Caa2 from B1. The rating outlook remains negative. COUNTRY GARDEN: Moody's Assigns Ba1 CFR & Alters Outlook to Neg. ---------------------------------------------------------------- Moody's Investors Service has assigned a Ba1 corporate family rating to Country Garden Services Holdings Company Ltd (CGS) and withdrawn its Baa3 issuer rating. At the same time, Moody's has changed the rating outlook on CGS to negative from stable. "The rating action reflects Moody's concerns over CGS' increased contagion risks to Country Garden Holdings Company Limited (CGH, Caa1 negative), given the latter's deteriorated credit profile and the two entities' common controlling shareholder and brand name," says Kelly Chen, a Moody's Vice President and Senior Analyst. "The negative outlook reflects uncertainties over CGS' operations and the financial impacts should CGH's credit conditions worsen," adds Chen. RATINGS RATIONALE Moody's believes CGS faces increasing contagion risks from CGH as the two entities share the same brand name and controlling shareholder, Ms. Yang Huiyan. Ms. Yang also serves as the Chairman of the board in both companies. Moody's is concerned CGH's heightened liquidity and refinancing risks could weigh on CGS' business growth trajectory and access to funding. CGS is also exposed to governance risk stemming from its concentrated ownership as Ms. Yang Huiyan effectively controls 36.12% of the voting rights of the company, which indicates that influence from the largest shareholder could materially change its financial policy and strategy. The increased governance risks at CGH raise uncertainties regarding CGS' financial management strategy. CGH's financial struggles create uncertainties over the prospects of CGS' revenue growth and operating cash flow, as 42% of the latter's property management services revenue is from projects developed by CGH in 2022. As a result, Moody's has lowered its revenue growth forecast for 2023-24 to around 6% from 10%-11% previously to reflect such uncertainties. CGH's credit stress could also lengthen CGS' working capital cycle, with around 11% of CGS' receivables related to CGH as of December 2022. In addition, Moody's expects the company's adjusted gross profit margin to continue to decline over the next 12-18 months to around 27% from 29% in 2022. Such a decline is mainly attributed to the provision of value-added services to non-property owners and community value-added services. Accordingly, Moody's estimates the company's adjusted EBITA margin will drop to around 15% from 17% over the same period. However, the agency expects CGS to grow organically over the next one to two years with limited acquisitions. As a result, Moody's projects CGS' adjusted debt/EBITDA and EBITA/interest coverage will stay at 0.6x-0.7x and 37x-38x, respectively, over the next one to two years, which support its Ba1 CFR. CGS' Ba1 CFR also reflects the company's position as a leading property management and community services provider in China with well-diversified operations across China and a significant proportion of recurring earnings. Moody's expects CGS to maintain its net cash position over the next 6-12 months. At the same time, CGS' CFR also reflects its prolonged working capital cycle and modest profitability, execution risk stemming from its large acquisitions in recent years and the contagion risk from CGH on the company. In terms of environmental, social and governance (ESG) factors, CGS' Credit Impact Scores of CIS-4 reflects the impact of ESG attributes, especially governance risk, on its ratings. In addition to the concentrated ownership, the agency has also considered the presence of only 3 independent nonexecutive directors on the company's 7-member board when assessing the governance risk. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade of CGS' ratings is unlikely over the next 12 months, given the negative outlook. However, the outlook could return to stable if contagion risks from CGH decline, as reflected by the company maintaining steady business and financial profiles, stable financial and dividend policies, a net cash position, and ongoing access to funding, all on a sustained basis. Moody's could downgrade CGS' ratings if CGH's credit conditions deteriorate further, such that contagion risks from CGH to CGS increase and materially weigh on CGS' operations and financial profiles, or the company adopts more aggressive financial or dividend policies that turn its net cash position into net debt. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. Country Garden Services Holdings Company Ltd is one of China's largest property management service providers with a market capitalization of around HKD26.9 billion as of August 9, 2023. It listed on the Hong Kong Stock Exchange in 2018. As of July 2023, its key shareholder, Ms. Yang Huiyan, directly and indirectly controls about 36.12% of the voting rights of the company. Country Garden Holdings Company Limited (Caa1 negative) is CGS' sister company, and the former is 52.6% owned by the same shareholder. COUNTRY GARDEN: Woes Raise Fears of REIT Defaults, J.P. Morgan Says ------------------------------------------------------------------- Reuters reports that turmoil at China's largest private developer Country Garden could set off a "vicious cycle" of financing stress on the country's real estate investment trusts (REITs), brokerage J.P. Morgan warned on Aug. 14. According to Reuters, the brokerage flagged issues at Chinese conglomerate Zhongzhi Enterprise Group, after two Chinese listed companies said they had not received payment on maturing investment products from its unit, Zhongrong International Trust. REITs would be forced to dip into their profits if they fail to honor payments on debts, analysts said, putting at risk nearly CNY2.8 trillion (US$385.78 billion) worth of assets under the management, Reuters relates. These fresh worries come as Country Garden sought to delay payment on a private onshore bond for the first time and suspended trading in 11 onshore bonds. "Unlike banks, which have holding power and are able to roll over credit to wait for an eventual resolution, alternative financing channels such as trusts may default once trust investors are unwilling to roll over the products," J.P. Morgan analysts led by Katherine Lei said in a note. 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 to Caa1 from B1 and its senior unsecured rating to Caa2 from B1. The rating outlook remains negative. ZHONGZHI ENTERPRISE: Under Probe Over Missed Payment ---------------------------------------------------- Bloomberg News reports that China's banking regulator has set up a task force to examine risks at Zhongzhi Enterprise Group, one of the nation's top private wealth managers, after a unit missed payments on multiple high-yield investment products. According to Bloomberg, the National Financial Regulatory Administration established a working group last month to gauge the outstanding debt and risks at one of the main financing arms of Beijing-based Zhongzhi, which oversees more than CNY1 trillion worth of assets, according to people familiar with the matter, who asked not to be identified discussing a private matter. Bloomberg relates that the regulator required Zhongrong International Trust to report its plans for future payments and available assets that can be disposed of to deal with the liquidity crunch, said sources, as nearly half the funds raised by Zhongrong were funneled to its parent or affiliated units. Zhongrong Trust alone has 270 products totaling CNY39.5 billion due this year, according to data provider Use Trust. Zhongzhi Enterprise Group Co. Ltd. operates as a diversified real estate developer. The Company develops residential and commercial areas. Zhongzhi Enterprise Group also provides trust investment, highway operation, land reserve, and reservoirs treatment services. ================= H O N G K O N G ================= TELEVISION BROADCASTS: To Receive Up to HK$700MM Loans ------------------------------------------------------ The Standard reports that Television Broadcasts will obtain up to HK$700 million from CMC and Young Lion Holdings, after the city's major broadcaster warned its interim net loss might widen by as much as 87 percent yearly to HK$420 million. Under the agreement, CMC and major shareholder Young Lion will extend borrowing facilities of up to HK$700 million to the broadcaster, aiding its ongoing business operations and financial requirements. The Standard relates that these facilities shall be available up to December 31, 2024, and will be subject to an annual interest rate of the Hong Kong interbank offered rate plus 1.25 percent, which TVB stated is lower than its present market borrowing expenses. Illustratively, using the one-month Hibor as a benchmark, the effective rate would be approximately 6 percent. According to The Standard, CMC chairman Li Ruigang expressed confidence in TVB's dominant position in Hong Kong's television landscape and its global Chinese-speaking audience. He offered full support to the company's recovery and transformation initiatives amidst recent challenges, and noted that the additional funding would enable TVB to seize emerging business prospects in the market, the report relays. Li also serves as TVB's non-executive director, and earlier this year, he was asked to step down by minor shareholders who accused him of bad management. The Standard adds that TVB executive chairman Thomas Hui To expressed gratitude to CMC and Young Lion for their support and enduring trust in the management team. Despite the difficulties faced in Hong Kong and mainland China earlier this year, impacting 2023's performance thus far, TVB remains steadfast in its path toward recovery, according to Hui. He also highlighted the first half of 2023 as an improvement over the latter half of 2022, with expectations of continued progress in the latter half of 2023 through the execution of crucial projects and initiatives, The Standard relays. On Aug. 14, TVB issued a profit warning, projecting a net loss of HK$400 million to HK$420 million for the first half of the year ended June, compared to a loss of HK$224 million in the same period of 2022, The Standard discloses. But the expected net loss has narrowed from the HK$583 million loss in the second half of last year. Revenue for the first half is expected to decline by 14 percent year-on-year to HK$1.56 billion. Based in Hong Kong, Television Broadcasts Limited (TVB) is a television broadcasting. The Company operates five free-to-air terrestrial television channels in Hong Kong, with TVB Jade as its main Cantonese language service, and TVB Pearl as its main English service. TVB is headquartered at TVB City at the Tseung Kwan O Industrial Estate. ========= I N D I A ========= ALBANNA ENGINEERING: CRISIL Keeps D Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Albanna Engineering (India) Private Limited (AEIPL) continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 14.4 CRISIL D (Issuer Not Cooperating) Letter of Credit 0.6 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with AEIPL for obtaining information through letter and email dated July 28, 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 AEIPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on AEIPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of AEIPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Albanna Engineering (India) Pvt Ltd (AEIPL), established in 2013, is a wholly owned subsidiary of Albanna Engineering LLC (ABE) which is a major EPC contractor in mechanical engineering field in UAE. AEIPL was established solely for taking up projects in India which fall under group fields of core competence like Oil & Gas and Process & Engineering Industries. The company is promoted by Mr. Sreekumar Nair. ASIAN IMPEX: CARE Keeps D Debt Rating in Not Cooperating Category ----------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Asian Impex (AI) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 7.50 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated July 22, 2022, placed the rating(s) of AI under the 'issuer non-cooperating' category as AI had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. AI continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 7, 2023, June 17, 2023, June 27, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Asian Impex (AI), incorporated in 2010, is promoted by Mr Haron Haji Panja, Mr Altaf Chhel, Mr. Ashif Harun Panja, Mr. Kashif Harun Panja, Ms. Halima Safi Panja and Mr. Aaysa Harun Panja. AI is engaged in processing of sea foods and exports the same to Europe, Gulf countries, Africa and China. AI has a processing cum storage facility located at Veraval (Gujarat) with total installed capacity of 50 MTPD (metric ton per day) for processing of Sea Foods and 1,000 metric tons storage capacity as on March 31, 2016. BILTECH BUILDING: CARE Keeps D Debt Rating in Not Cooperating ------------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of Biltech Building Elements Limited (BBEL) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 62.99 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated August 2, 2022, placed the rating(s) of BBEL under the 'issuer non-cooperating' category as BBEL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. BBEL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 18, 2023, June 28, 2023, July 8, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Biltech Building Elements limited (BBEL), an Avantha group company, was incorporated in 2004. It is engaged in manufacturing 'Autoclaved Aerated Concrete Blocks, i.e. AAC-Blocks for 'green building' process by utilizing fly-ash, lime, cement, gypsum and aluminium powder as major raw materials. CHAHAL SPINTEX: CRISIL Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Chahal Spintex Limited (CSL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 1.29 CRISIL D (Issuer Not Cooperating) Cash Credit 16 CRISIL D (Issuer Not Cooperating) Term Loan 22.81 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with CSL 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 CSL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on CSL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of CSL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. CSL, incorporated in 2007, is promoted by Mr. Sukhdev Singh and his family members. The company manufactures cotton yarn in counts of 20 to 30 at its unit in Bhatinda, Punjab; it sells to traders and merchant exporters. The promoters also manage a ginning and oil unit under group concern, Chahal Cotton Factory. COMPUAGE INFOCOM: CARE Cuts Rating in INR510cr LT Loan to D ----------------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of Compuage Infocom Limited (CIL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 450.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category and Revised from CARE C; Negative Short Term Bank 510.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category and Revised from CARE A4 Rationale and key rating drivers: CARE Ratings Ltd. had, vide its press release dated April 26, 2023, placed the rating(s) of CIL under the 'issuer non-cooperating' category as CIL had failed to provide information for monitoring of the rating. CIL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated April 13, 2023, April 19, 2023, April 24, 2023, April 25, 2023, July 18, 2023, and August 8, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders, and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings assigned to bank facilities of CIL have been revised on account of delays in debt servicing as confirmed by the banker during our due diligence exercise. Analytical approach: Consolidated CARE has considered the consolidated financials of CIL for analytical purposes owing to financial and operational linkages between the company and its subsidiary. Consolidation includes CIL's wholly owned Singapore based subsidiary, Compuage Infocom (S) Pte Ltd. However, there were minimal operations in Compuage Infocom (S) Pte Ltd. in FY22. Detailed description of the key rating drivers: At the time of last rating on July 21, 2023, following were the rating strengths and weaknesses (updated for the information from publicly available). Compuage Infocom Limited (CIL)with CIN L99999MH1999PLC135914 and listed on BSE is promoted by Mr Atul Mehta, in 1987, is a distributor of IT products. CIL's traded product portfolio comprises of 5 different verticals namely- PCs components & peripherals; Mobility products; Physical safety and security products. CONTINUUM ENERGY: Fitch Assigns First Time 'B+' LongTerm IDR ------------------------------------------------------------ Fitch Ratings has assigned Indian renewable power producer Continuum Green Energy Limited (CGEL) a Long-Term Issuer Default Rating (IDR) of 'B+' with a Positive Outlook. Fitch has also assigned a 'B+' rating with a Recovery Rating of 'RR4' to the proposed USD450 million senior notes to be issued by Continuum Energy Aura Pte. Ltd. (CEAPL), a Singapore-based fully owned subsidiary of CGEL, which will unconditionally and irrevocably guarantee the proposed notes. CEAPL will use the proceeds for refinancing, interest servicing, development expenditure, transaction expenses and for general corporate purposes. Noteholders will benefit from covenants limiting consolidated debt and distributions, along with a charge over CEAPL's bank accounts and shares as well as a negative lien on 75% of the shares of Continuum Green Energy (India) Pvt. Ltd., the onshore holding company. CGEL's renewable-energy generation portfolio comprises of 1.3 gigawatts (GW) of operational capacity in India. It also has a near-commissioning project portfolio of around 1.0 GW. Around 64% of the portfolio consists of wind assets, with the balance being solar. A majority of offtake is tied to commercial and industrial (C&I) customers. CGEL's rating is constrained by high EBITDA net leverage, which stems from the large capex required for project construction. The Positive Outlook reflects Fitch expectation that EBITDA net leverage will come down to below 6x, a key upgrade sensitivity, by the financial year ending March 2025 (FY25), assisted by reduced capex intensity and rising cash generation from larger operating assets. KEY RATING DRIVERS Expanding Portfolio, Manageable Execution Risk: CGEL aims to lift its operating capacity to 2.3 GW by end-2023, from 1.3 GW as at June 2023. The expansion will see the proportion of more-stable solar assets increase to 36% of the operating portfolio, from around 17%, with the balance comprising wind assets. There is some risk of commissioning delays on the large-scale construction pipeline, but CGEL says that it has made sound progress at most of its projects, including in the installation of equipment and the readiness of evacuation infrastructure. Fitch believe this should limit any major delays. Diversified, Strong Counterparty Profile: Around 78% of the offtake from CGEL's 2.3 GW of projects is tied to C&I customers, while another 5% is with the state-owned Solar Energy Corporation of India Limited (SECI). A further 4% is sold directly on the exchange and the remainder is tied to weaker state-owned power-distribution utilities; a proportion much lower than that of peers. CGEL's C&I customers tend to make timely payments and mitigate concentration risk, as no single customer accounts for more than 3.5% of a project's capacity. CGEL's strong counterparty profile is evidenced by its low receivable days, which are 50-100 days below those of peers. Fitch expect CGEL's receivable days to improve to 63 in FY24 (FY23: 79, FY22: 169), as all its new capacity additions are tied with C&I customers . Capex and Leverage to Ease Post FY24: Fitch expect EBITDA net leverage to come down to 5.9x by FY25 (FY24: 14.2x, FY23:16.5x) with lower capex intensity. EBITDA net interest coverage should also improve to around 1.6x (FY24: 0.8x, FY23: 0.5x), with capex peaking at INR40 billion in FY24 (FY23: INR23 billion). Fitch deconsolidate the EBITDA and debt of CGEL's restricted group - Continuum RG1, for which Continuum Energy Levanter Pte. Ltd. is a lender (secured debt: BB+/Stable with maturity in 2027) - to calculate CGEL's credit metrics and include cash to be upstreamed from Continuum RG1 in EBITDA. Long-Term Cash Flow Visibility: CGEL's long-term power-purchase agreements (PPAs) boost its cash flow visibility. PPAs with C&I customers have a shorter tenor of five to 20 years, against 20 to 25 years for state utilities and SECI, but CGEL's average balance C&I tenor exceeds nine years. Fitch expect CGEL to renew its maturing C&I PPAs at tariffs that are similar to current levels in view of strong demand, as direct PPAs with renewable generation companies offer C&I customers a cheaper alternate to grid tariffs and help them meet renewable energy purchase targets. Hybrid Projects Lower Generation Volatility: The long-term PPAs provide protection from price risk, but production volume varies on resource availability, which is affected by seasonal and climatic patterns. Resource uncertainty is higher for wind assets than for solar, but the majority of CGEL's assets are wind-solar hybrid projects. This lowers intra-day generation volatility and adds to operational efficiency. Adequate Holding-Company Liquidity: Fitch monitor the cash flow from operation-based debt service coverage ratio (cash flow from operation + interest expense/scheduled project debt amortisation + interest expense) at the holding company and unrestricted projects to analyse liquidity at the unrestricted portfolio and holding company. Fitch expect this ratio to improve to above 1.0x from FY25 (FY23: 0.5x). Offtake diversity should limit volatility in cash generation and upstreaming from operating subsidiaries, as Fitch expect the holding-company level interest coverage ratio to remain above 1.0x. Average Recovery on Proposed Notes: The ratings on the proposed notes reflect Fitch expectation of at least average recovery for noteholders. The proposed notes' obligations are subordinated to the project-level secured loans, but recovery prospects benefit from expected cash upstreaming from CGEL's expanding operating projects. Fitch expect cash upstreaming to be supported by the larger operational capacity and lower pressure on working capital due to CGEL's lower receivable days as compared with peers. The proposed note ratings also reflect the limitation on debt incurrence, such that consolidated net leverage remains below 6.5x and the holding company cash flow coverage ratio is maintained above 1.1x - both ratios as defined in the note indenture. Currency Hedging, Some Refinancing Risk: CGEL's earnings are in rupees, but the proposed notes are denominated in US dollars, resulting in exposure to foreign-exchange risk. However, the company plans to largely hedge this risk. The proposed US-dollar notes face refinancing risk, as Fitch estimate that CGEL's cash balance will be insufficient to repay the notes at maturity. However, this risk is mitigated by CGEL's access to the domestic bank market. Shareholder Exit - Event Risk: Fitch understand that CGEL's majority shareholder, one of the fund entities managed by Morgan Stanley Infrastructure Partners, plans to sell its stake in CGEL. Any change in shareholding could alter CGEL's growth plans and risk appetitive, and therefore impact its credit profile. However, Fitch treat this as an event risk in the absence of sufficient details relating to the transaction. DERIVATION SUMMARY CGEL's closest peers include ReNew Power Private Limited (BB-/Stable), Greenko Energy Holdings (BB/Negative) and Concord New Energy Group Limited (CNE, BB-/Stable). CGEL's portfolio has a higher proportion of wind assets than ReNew and Greenko, at around 64%. Wind assets have more volatile generation than solar assets, but many of these are wind-solar hybrid. This lowers operating costs and intra-day generation volatility. CGEL has lower counterparty risk, with more than 80% of capacity contracted with timely paying customers. In comparison, more than 40% of offtake at ReNew and Greenko is tied-up with weaker state distribution companies, which have a record of delayed payments. However, CGEL's better counterparty profile is counteracted by high net leverage in the near term, which, at above 10x, exceeds ReNew's 6.4x and Greenko's 8.2x. This, along with ReNew's larger scale of diversified operating assets of 8.0 GW and higher proportion of solar assets, results in CGEL's one-notch lower rating. The Positive Outlook on CGEL's rating reflects Fitch expectation of an improvement in net leverage to around 6.0x by FY25, which would be comparable to ReNew's net leverage. Greenko's credit assessment is supported by its stronger financial access, which enables the company to rely on fresh equity for investments and acquisitions, while utilising cash generated from operations to deleverage. This, along with Fitch lower expectations for Greenko's leverage, results in a two-notch higher ratings than for CGEL, despite Greenko's higher counterparty risk. The Negative Outlook reflects Greenko's low EBITDA/net interest cover headroom against the 1.8x downgrade sensitivity due to its rising capex for pumped storage projects and higher trade receivables. CNE has an attributable wind capacity of 2.9 GW across multiple projects in China. Its feed-in tariffs are stable and its counterparty risk is lower than that of CGEL, as CNE's revenue stream is mostly reliant on State Grid Corporation of China (A+/Stable) and China's Renewable Energy Subsidy Fund. While CGEL is smaller in scale, Fitch expect it to expand at a faster pace. Yet CGEL is rated one notch lower due to its higher leverage, compared with around 5.0x at CNE. KEY ASSUMPTIONS Fitch's Key Assumptions Within Fitch Rating Case for the Issuer: -- Plant-load factors in line with average historical performance or resource assessment studies -- Plant-wise tariff in accordance with PPAs with SECI and state distribution companies -- Tariffs under C&I PPAs as per management guidance. These vary with changes in state distribution company tariffs and applicable open access charges -- Average receivable days to reduce to 63 in FY24 (FY23: 79), assisted by greater exposure to SECI and C&I customers -- EBITDA margin to average at around 75%, above historical levels of around 70%, due to a larger operating base of wind-solar hybrid assets -- Capex to peak at around INR40 billion in FY24 (FY23: INR23 billion) -- No dividend payout in the medium term Key Recovery Rating Assumptions -- Recovery analysis for CGEL is on a going-concern basis in the case of a bankruptcy and assumes that the company would be reorganised and not liquidated. Fitch have assumed a 10% administrative claim. -- A two-step recovery approach has been used, considering the recovery value from the Continuum RG1 assets would be first used to satisfy Continuum RG1's US dollar notes and working-capital borrowings. Only the remaining value, if any, would be used to satisfy the borrowings outside of Continuum RG1. -- An enterprise value (EV)/EBITDA multiple of 6.5x is used to calculate the post-reorganisation valuation, which takes into account the stable nature of these assets and the average multiple of around 7x-8x used in recent M&A transactions in the sector. -- CGEL's FY24 EBITDA, excluding Continuum RG1's EBITDA, has been used as the base and debt at FYE24 includes borrowings for the significant capacity of more than 1GW that is in various stages of construction, but not the full-year of EBITDA for these projects. To factor in the EBITDA, Fitch have added 90% of the incremental EBITDA in the FY25 rating-case projection over FY24, and 20% of the incremental EBITDA in the FY26 rating-case projection over FY25, to arrive at the going-concern EBITDA. -- The liquidation value estimate reflects Fitch's view of the value of receivables under a liquidation scenario with an 85% advance rate and a 50% advance rate for the fixed assets. The assumptions result in a recovery rate corresponding to a Recovery Rating of 'RR2'. However, CGEL's assets are in India, which Fitch classifies as under Group D of jurisdictions, which means the Recovery Rating for the proposed US dollar notes is capped at 'RR4'. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- EBITDA net leverage at below 6.0x in the next 12-18 months, provided that there is no significant increase in CGEL's overall business risk profile -- Smooth holding company funding access at costs comparable to that of similar rated peers Factors that could, individually or collectively, lead to negative rating action/downgrade: The Outlook will be revised to Stable if positive sensitivities are not met LIQUIDITY AND DEBT STRUCTURE Adequate Liquidity: CGEL had a readily available cash balance of INR27.5 billion at end-March 2023, against current debt maturities of INR4.2 billion. Fitch expect CGEL to generate negative free cash flow in FY24 due to high capex, which will be funded by a mix of additional debt and internal cash accruals. However, CGEL benefits from some capex flexibility, adequate access to the domestic bank-loan market and no large bullet maturities before January 2026, when a USD400 million holding company bond is due. CGEL aims to refinance this bond with its proposed notes. ISSUER PROFILE CGEL is an India-focused renewable energy group, incorporated in Singapore in 2012. CGEL has an operational capacity of 1.3GW with a focus on utility-scale wind and wind-solar hybrid projects. It has an additional 1GW of projects nearing commissioning. ESG CONSIDERATIONS The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. CONTINUUM GREEN: Fitch Assigns First Time 'B+' IDR, Outlook Pos. ---------------------------------------------------------------- Fitch Ratings has assigned Indian renewable power producer Continuum Green Energy Limited (CGEL) a Long-Term Issuer Default Rating (IDR) of 'B+' with a Positive Outlook. Fitch has also assigned a 'B+' rating with a Recovery Rating of 'RR4' to the proposed USD450 million senior notes to be issued by Continuum Energy Aura Pte. Ltd. (CEAPL), a Singapore-based fully owned subsidiary of CGEL, which will unconditionally and irrevocably guarantee the proposed notes. CEAPL will use the proceeds for refinancing, interest servicing, development expenditure, transaction expenses and for general corporate purposes. Noteholders will benefit from covenants limiting consolidated debt and distributions, along with a charge over CEAPL's bank accounts and shares as well as a negative lien on 75% of the shares of Continuum Green Energy (India) Pvt. Ltd., the onshore holding company. CGEL's renewable-energy generation portfolio comprises of 1.3 gigawatts (GW) of operational capacity in India. It also has a near-commissioning project portfolio of around 1.0 GW. Around 64% of the portfolio consists of wind assets, with the balance being solar. A majority of offtake is tied to commercial and industrial (C&I) customers. CGEL's rating is constrained by high EBITDA net leverage, which stems from the large capex required for project construction. The Positive Outlook reflects Fitch expectation that EBITDA net leverage will come down to below 6x, a key upgrade sensitivity, by the financial year ending March 2025 (FY25), assisted by reduced capex intensity and rising cash generation from larger operating assets. KEY RATING DRIVERS Expanding Portfolio, Manageable Execution Risk: CGEL aims to lift its operating capacity to 2.3 GW by end-2023, from 1.3 GW as at June 2023. The expansion will see the proportion of more-stable solar assets increase to 36% of the operating portfolio, from around 17%, with the balance comprising wind assets. There is some risk of commissioning delays on the large-scale construction pipeline, but CGEL says that it has made sound progress at most of its projects, including in the installation of equipment and the readiness of evacuation infrastructure. Fitch believe this should limit any major delays. Diversified, Strong Counterparty Profile: Around 78% of the offtake from CGEL's 2.3 GW of projects is tied to C&I customers, while another 5% is with the state-owned Solar Energy Corporation of India Limited (SECI). A further 4% is sold directly on the exchange and the remainder is tied to weaker state-owned power-distribution utilities; a proportion much lower than that of peers. CGEL's C&I customers tend to make timely payments and mitigate concentration risk, as no single customer accounts for more than 3.5% of a project's capacity. CGEL's strong counterparty profile is evidenced by its low receivable days, which are 50-100 days below those of peers. Fitch expect CGEL's receivable days to improve to 63 in FY24 (FY23: 79, FY22: 169), as all its new capacity additions are tied with C&I customers. Capex and Leverage to Ease Post FY24: Fitch expect EBITDA net leverage to come down to 5.9x by FY25 (FY24: 14.2x, FY23:16.5x) with lower capex intensity. EBITDA net interest coverage should also improve to around 1.6x (FY24: 0.8x, FY23: 0.5x), with capex peaking at INR40 billion in FY24 (FY23: INR23 billion). Fitch deconsolidate the EBITDA and debt of CGEL's restricted group - Continuum RG1, for which Continuum Energy Levanter Pte. Ltd. is a lender (secured debt: BB+/Stable with maturity in 2027) - to calculate CGEL's credit metrics and include cash to be upstreamed from Continuum RG1 in EBITDA. Long-Term Cash Flow Visibility: CGEL's long-term power-purchase agreements (PPAs) boost its cash flow visibility. PPAs with C&I customers have a shorter tenor of five to 20 years, against 20 to 25 years for state utilities and SECI, but CGEL's average balance C&I tenor exceeds nine years. Fitch expect CGEL to renew its maturing C&I PPAs at tariffs that are similar to current levels in view of strong demand, as direct PPAs with renewable generation companies offer C&I customers a cheaper alternate to grid tariffs and help them meet renewable energy purchase targets. Hybrid Projects Lower Generation Volatility: The long-term PPAs provide protection from price risk, but production volume varies on resource availability, which is affected by seasonal and climatic patterns. Resource uncertainty is higher for wind assets than for solar, but the majority of CGEL's assets are wind-solar hybrid projects. This lowers intra-day generation volatility and adds to operational efficiency. Adequate Holding-Company Liquidity: Fitch monitor the cash flow from operation-based debt service coverage ratio (cash flow from operation + interest expense/scheduled project debt amortisation + interest expense) at the holding company and unrestricted projects to analyse liquidity at the unrestricted portfolio and holding company. Fitch expect this ratio to improve to above 1.0x from FY25 (FY23: 0.5x). Offtake diversity should limit volatility in cash generation and upstreaming from operating subsidiaries, as Fitch expect the holding-company level interest coverage ratio to remain above 1.0x. Average Recovery on Proposed Notes: The ratings on the proposed notes reflect Fitch expectation of at least average recovery for noteholders. The proposed notes' obligations are subordinated to the project-level secured loans, but recovery prospects benefit from expected cash upstreaming from CGEL's expanding operating projects. Fitch expect cash upstreaming to be supported by the larger operational capacity and lower pressure on working capital due to CGEL's lower receivable days as compared with peers. The proposed note ratings also reflect the limitation on debt incurrence, such that consolidated net leverage remains below 6.5x and the holding company cash flow coverage ratio is maintained above 1.1x - both ratios as defined in the note indenture. Currency Hedging, Some Refinancing Risk: CGEL's earnings are in rupees, but the proposed notes are denominated in US dollars, resulting in exposure to foreign-exchange risk. However, the company plans to largely hedge this risk. The proposed US-dollar notes face refinancing risk, as Fitch estimate that CGEL's cash balance will be insufficient to repay the notes at maturity. However, this risk is mitigated by CGEL's access to the domestic bank market. Shareholder Exit - Event Risk: Fitch understand that CGEL's majority shareholder, one of the fund entities managed by Morgan Stanley Infrastructure Partners, plans to sell its stake in CGEL. Any change in shareholding could alter CGEL's growth plans and risk appetitive, and therefore impact its credit profile. However, Fitch treat this as an event risk in the absence of sufficient details relating to the transaction. DERIVATION SUMMARY CGEL's closest peers include ReNew Power Private Limited (BB-/Stable), Greenko Energy Holdings (BB/Negative) and Concord New Energy Group Limited (CNE, BB-/Stable). CGEL's portfolio has a higher proportion of wind assets than ReNew and Greenko, at around 64%. Wind assets have more volatile generation than solar assets, but many of these are wind-solar hybrid. This lowers operating costs and intra-day generation volatility. CGEL has lower counterparty risk, with more than 80% of capacity contracted with timely paying customers. In comparison, more than 40% of offtake at ReNew and Greenko is tied-up with weaker state distribution companies, which have a record of delayed payments. However, CGEL's better counterparty profile is counteracted by high net leverage in the near term, which, at above 10x, exceeds ReNew's 6.4x and Greenko's 8.2x. This, along with ReNew's larger scale of diversified operating assets of 8.0 GW and higher proportion of solar assets, results in CGEL's one-notch lower rating. The Positive Outlook on CGEL's rating reflects our expectation of an improvement in net leverage to around 6.0x by FY25, which would be comparable to ReNew's net leverage. Greenko's credit assessment is supported by its stronger financial access, which enables the company to rely on fresh equity for investments and acquisitions, while utilising cash generated from operations to deleverage. This, along with our lower expectations for Greenko's leverage, results in a two-notch higher ratings than for CGEL, despite Greenko's higher counterparty risk. The Negative Outlook reflects Greenko's low EBITDA/net interest cover headroom against the 1.8x downgrade sensitivity due to its rising capex for pumped storage projects and higher trade receivables. CNE has an attributable wind capacity of 2.9 GW across multiple projects in China. Its feed-in tariffs are stable and its counterparty risk is lower than that of CGEL, as CNE's revenue stream is mostly reliant on State Grid Corporation of China (A+/Stable) and China's Renewable Energy Subsidy Fund. While CGEL is smaller in scale, Fitch expect it to expand at a faster pace. Yet CGEL is rated one notch lower due to its higher leverage, compared with around 5.0x at CNE. KEY ASSUMPTIONS Fitch's Key Assumptions Within Our Rating Case for the Issuer: -- Plant-load factors in line with average historical performance or resource assessment studies -- Plant-wise tariff in accordance with PPAs with SECI and state distribution companies -- Tariffs under C&I PPAs as per management guidance. These vary with changes in state distribution company tariffs and applicable open access charges -- Average receivable days to reduce to 63 in FY24 (FY23: 79), assisted by greater exposure to SECI and C&I customers -- EBITDA margin to average at around 75%, above historical levels of around 70%, due to a larger operating base of wind-solar hybrid assets -- Capex to peak at around INR40 billion in FY24 (FY23: INR23 billion) -- No dividend payout in the medium term RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- EBITDA net leverage at below 6.0x in the next 12-18 months, provided that there is no significant increase in CGEL's overall business risk profile -- Smooth holding company funding access at costs comparable to that of similar rated peers Factors that could, individually or collectively, lead to negative rating action/downgrade: The Outlook will be revised to Stable if positive sensitivities are not met. LIQUIDITY AND DEBT STRUCTURE Adequate Liquidity: CGEL had a readily available cash balance of INR27.5 billion at end-March 2023, against current debt maturities of INR4.2 billion. Fitch expect CGEL to generate negative free cash flow in FY24 due to high capex, which will be funded by a mix of additional debt and internal cash accruals. However, CGEL benefits from some capex flexibility, adequate access to the domestic bank-loan market and no large bullet maturities before January 2026, when a USD400 million holding company bond is due. CGEL aims to refinance this bond with its proposed notes. ISSUER PROFILE CGEL is an India-focused renewable energy group, incorporated in Singapore in 2012. CGEL has an operational capacity of 1.3GW with a focus on utility-scale wind and wind-solar hybrid projects. It has an additional 1GW of projects nearing commissioning. ESG CONSIDERATIONS The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. CONTINUUM GREEN: S&P Assigns 'B+' LongTerm ICR, Outlook Positive ---------------------------------------------------------------- S&P Global Ratings, on Aug. 14, 2023, assigned its 'B+' long-term issuer credit rating to Continuum Green Energy Ltd. S&P also assigned its 'B+' long-term issue rating to the senior secured notes that Continuum Energy Aura Pte. Ltd. proposes to issue. Continuum will guarantee the notes. The positive outlook reflects the scheduled commissioning of most of Continuum's under-construction projects by December 2023. S&P expects an improvement in FFO cash interest coverage to about 1.25x in fiscal 2024 and toward 1.5x in fiscal 2025. This will be driven by cash flows from new projects, proposed fixed-rate refinancing at a lower cost, hedged currency risk, and improved profitability. Timely project commissioning underpins Continuum's cash flow and supports better interest coverage ratios.We expect the company's FFO cash interest coverage ratio to recover to about 1.25x in fiscal 2024 and above 1.5x in fiscal 2025 as it ramps up capacity. With the addition of 1.0 gigawatts (GW) of capacity across five projects, Continuum's total operating capacity will increase to 2.3 GW from 1.3 GW. Pipeline projects will start contributing full-year cash flow in fiscal 2025, supporting higher earnings and stronger ratios. S&P believes execution risk on projects under construction has dropped, given that they are on track for commissioning over September-December 2023. Continuum has completed major work on the commissioning of substations and transmission lines. The projects are in the final phases of commissioning, pending the completion of installation of wind turbines and solar panels. Although residual risk could arise from right-of-way issues during the installation stage, as seen in previous projects, S&P views such risks to be manageable. This is because they typically affect capacity partially. Continuum also commissions projects in phases or in lots. This means the projects generate revenue once they are operational. The company has also signed power purchase agreements with prospective customers for most of its projects. S&P expects Continuum's EBITDA margins to improve to about 75% on a fully operational portfolio, from 67% in fiscal 2023. The company's newly commissioned projects will benefit from low operational and maintenance costs over the next two to three years, supporting higher profitability. Full-year cash flow generation will also help offset fixed costs such as transmission and employee charges. Proposed refinancing of floating-rate notes will eliminate interest-rate volatility and reduce currency risk. Continuum plans to refinance its US$400 million floating-rate note with a fixed-rate three-year bond. Despite a lower funding cost than current levels, interest savings will likely be minimal. This is due to the proposed issuance of a larger amount. Nonetheless, Continuum will no longer face interest-rate risk or be exposed to changing Secured Overnight Financing Rates. Moreover, Continuum will have lower currency risk owing to less aggressive hedging for the proposed bonds. The company intends to hedge its cross-currency exposure for the full tenor of the proposed notes, instead of its current approach of hedging for a period shorter than the full tenor. Continuum will hedge through a call spread option structure, similar to most India-based renewable peers. S&P said, "In our view, the target strike price can cover the rate of Indian rupee depreciation that we are expecting for the next two to three years. However, if the Indian rupee depreciates sharply against the U.S. dollar, the company could face higher currency risk and hedging costs than we expect." Continuum's differentiated focus on the C&I segment in India's power sector will continue to support its competitive position and receivables. The C&I market in India is currently underpenetrated, allowing the company to benefit from being one of the first players to serve the market. This strategy limits Continuum's exposure to weaker state counterparties, which have a record of payment delays, leading to a considerable buildup in receivables. Compared with state distribution companies (discoms), C&I customers have better credit quality with a good record of timely payment of dues, with payment terms of 15-20 days. Continuum also benefits from a diversity of C&I customers across sectors, with more than 190 customers as of July 31, 2023. Continuum benefits from higher C&I tariffs, as evident from tariff increases across the key Indian states of Gujarat, Tamil Nadu, and Madhya Pradesh in fiscal 2023. S&P expects tariffs to remain high because they help to subsidize politically-sensitive sectors such as retail and agricultural customers. This will boost cash flow and help to reduce downside risk from weaker operating performances, particularly for wind projects. S&P said, "We believe Continuum will maintain its strategic positioning in the profitable C&I market. The company's strategy is to construct wind-solar hybrid projects (these have a higher-generation profile more suited to customers' needs), which enable it to offer competitive rates and discounts. Continuum's access to good wind sites and its first-mover advantage in states such as Gujarat (with supportive frameworks for open access sales of renewable energy) also strengthen its competitive position. Although the company has a small share of a fragmented market, we believe the C&I market is largely underpenetrated, at below 10%. This provides good growth prospects." C&I contracts provide long-term cash flow visibility. While C&I contracts are relatively shorter at 5-20 years, compared with 25 years for power purchase agreement contracts with discoms, they provide good cash flow visibility. Annual inflation adjustments to tariffs and an overall favorable market structure for C&I partially mitigate annual repricing risk. Furthermore, C&I renewable projects benefit from grid priority dispatch, limiting volume risks. Take-or-pay terms with C&I customers are high at 85%-90%. In case of a volume shortfall, Continuum can sell surplus volume to discoms at a fixed, albeit lower, price. In S&P's view, these features support cash flow stability and good earnings quality. Continuum is likely to earn higher returns than India-based renewable peers. S&P believes the company will continue to earn a higher return on capital (ROC) than peers such as Greenko Energy Holdings and ReNew Power Pte. Ltd. (unrated). These peers operate largely in the competitive bid-tariff (regulated) segment with fixed-price long-term contracts. In contrast, Continuum's contracts with C&I customers are benchmarked to variable industrial tariffs in each state. Continuum also charges a higher net tariff (after deducting for open access charges) from its C&I customers. This supports better profitability, and S&P believes the company will likely earn a higher ROC of 11%-12%, compared with about 6% for Greenko. Diversification of resource risks will likely stabilize Continuum's operating performance toward P90 (meeting power generation probability at least 90% of the time). With a wind-dominated portfolio, Continuum is exposed to persistent poor wind performance that has hit the industry over the past three years. Its wind portfolio performance deteriorated in fiscal 2023 (3.3% underperformance, compared with 1.9% underperformance in fiscal 2022 and 2.2% in fiscal 2021). In S&P's view, Continuum's increasing portfolio diversity through the addition of more solar assets over the next few years will help to moderate resource risks for the company. Solar assets typically have more stable performance than wind. This will sustain portfolio generation in line with P90. However, resource risk is inherent for all renewable players. Any material underperformance resulting in a cash flow shortfall could put pressure on Continuum's financial performance. S&P applies a 1% haircut to the wind plant load factor in its base case. This is to capture wind variability and the past underperformance of P90 estimates. Solar assets should perform in line with P90 estimates, given the company's track record. Continuum's leverage will remain elevated over the next 12 months given its large debt-funded capital expenditure (capex). Continuum's FFO-to-debt ratio will trend at 2.5%-6.0% over fiscals 2024 and 2025 as the company ramps up capacity. Capex will peak in fiscal 2024 to about US$541 million due to planned capacity additions. Capex is largely debt-funded, and the company has secured adequate funding from the domestic market. S&P estimates total adjusted debt will increase to US$1.4 billion-US$1.5 billion over fiscals 2024-2025, from US$1.0 billion in fiscal 2023. S&P said, "We believe Continuum will pursue a more measured growth strategy after its capex cycle peaks. The company does not intend to grow aggressively beyond its target capacity of 2.3GW by the end of fiscal 2024. We also expect growth to be calibrated, given that equity funding for projects under construction comes largely from internal cash accruals rather than equity inflow from promoters, sponsors, or the market through a public listing. We believe this will ensure Continuum's growth is more measured than its peers. "In our view, a potential exit by Morgan Stanley Infrastructure Partners (MSIP) will not change Continuum's core strategy of focusing on the C&I market. There is no target leverage for MSIP to exit and we do not expect Continuum's leverage to increase substantially. MSIP's stake sale is underway, and we will reassess the change in ownership structure, investment horizon of the new owner, and potential credit implications on the company. "We consolidate the restricted group, Continuum Energy Levanter Pte. Ltd., in our analysis.We do not view the leverage profile of the restricted group and Continuum to be materially different. Upon commissioning of under-construction projects, we do not expect cash flows at the parent to be weaker as well. "In our view, lock-ups of the debt service coverage ratio at the restricted group level are not likely to be interrupted. This is because 100% distributions are allowed if the ratio is greater than 1.5x for two consecutive half-year periods. Our base case assumes that this condition will be met. "We also consolidate all subsidiaries in the group due to the existence of a cross-default clause in the proposed fixed-rate note document. "The positive outlook on Continuum reflects our expectation that the company will complete the commissioning of 1 GW of wind-solar hybrid projects over the next three to six months. Stabilizing margins and proposed refinancing of the company's floating-rate notes will also improve cash flows, supporting FFO cash interest cover of about 1.2x-1.3x in fiscal 2024, and improving toward 1.5x in fiscal 2025." It also reflects Continuum management's representation that it does not plan to pursue further significant capital expenditure (capex) unless it secures sufficient equity funding or its internal cash accruals is sufficient to fund projects over and above its committed capex. S&P could revise the outlook on Continuum to stable if the company's FFO cash interest cover is unlikely to improve toward 1.5x on a sustainable basis. This could happen if material delays in project execution, significantly weaker operating performances than P90 estimates over a sustained period, or profitability below 70% leads to lower cash flow. S&P could raise the ratings on Continuum over the next 12 months if the company's FFO cash interest cover increases to more than 1.5x on a sustainable basis. This could happen if: -- Projects under construction are timely and are not materially delayed beyond fiscal 2024; and -- Profitability improves sustainably to about 75% with support from an improved cost position on a larger portfolio. ESG factors have an overall neutral influence on S&P's credit rating analysis of Continuum. The company has a small portfolio of 1,314 MW (2.3 GW by the end of fiscal 2024) that is entirely from renewable sources. Its cash flow also benefits from the must-run status of renewable energy in India. This status largely insulates Continuum from any major drops in demand for power. However, production volume of about 90% when assessed over a one-year period indicates resource risk. DR. M N TANDON: CARE Keeps C Debt Rating in Not Cooperating ----------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Dr. M N Tandon Memorial Charitable Trust (DMNTMCT) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 4.26 CARE C; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated August 08, 2022, placed the rating(s) of DMNTMCT under the 'issuer non-cooperating' category as DMNTMCT had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. DMNTMCT continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 24, 2023, July 4, 2023, July 14, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Dr. M N Tandon Memorial Charitable Trust (DMN) was formed in 2012 by Mrs. Maya Tandon wife of Dr. M.N Tandon along with a group of practicing medical consultants to operate a critical care unit. However, in May, 2016, trustees have changed and start operating a multi and super specialty hospital, under the name of "Jeevan Rekha Critical Care and Trauma Hospital" at Jaipur having 150 beds which includes general wards, private rooms and Intensive-Care Units (ICU) etc. The hospital provides specialized services related to various medical specialties viz. orthopedic, neurology, cardiology, gastroenterology, gynecology, general surgery, general medicine, dermatology, urology, nephrology, ENT, critical care, radiology, pathology and micrology. G.K. SALES: CARE Keeps D Debt Rating in Not Cooperating ------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of G.K. Sales Corporation (GSC) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated August 03, 2022, placed the rating(s) of GSC under the 'issuer non-cooperating' category as GSC had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. GSC continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 19, 2023, June 29, 2023, July 9, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). G.K. Sales Corporation (GSC) was established as a proprietorship firm in September, 2013 and is currently being managed by Mr. Gurvir Pal Singh. The firm is engaged in the distribution of Voltas and LG's electronic goods in Amritsar district of Punjab. The firm is the authorized distributor of Voltas Limited and Life's Good Electronics Inc. (LG). GLOBAL HEALTH: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Global Health Research and Management Institute (GHRMI) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 70 CRISIL D (Issuer Not Cooperating) Long Term Loan 40 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with GHRMI 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 GHRMI, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on GHRMI is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of GHRMI continues to be 'CRISIL D Issuer Not Cooperating'. GHRMI is a registered society under Rajasthan Society Registration Act. They are setting up a Multi-Specialty Hospital named Pacific Institute of Medical Science at Udaipur, Rajasthan with 750 beds and medical college offering MBBS course with Students intake of 150 p.a. at Udaipur. GYAN SHAKTI: CRISIL Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Gyan Shakti Education Welfare Trust (GSEWT) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 10 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with GSEWT 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 GSEWT, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on GSEWT is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of GSEWT continues to be 'CRISIL D Issuer Not Cooperating'. Incorporated in December 2013, with the registered office in New Delhi, GSEWT has set up a public school'affiliated to the Central Board of Secondary Education'at Crossings Republik, Ghaziabad, Uttar Pradesh. HOWRAH MILLS: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------ CRISIL Ratings said the ratings on bank facilities of Howrah Mills Co. Limited (HMCL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 6.22 CRISIL D (Issuer Not Cooperating) Bank Guarantee 1.78 CRISIL D (Issuer Not Cooperating) Cash Credit 17.6 CRISIL D (Issuer Not Cooperating) Cash Credit 34.8 CRISIL D (Issuer Not Cooperating) Letter of Credit 14 CRISIL D (Issuer Not Cooperating) Letter of Credit 6 CRISIL D (Issuer Not Cooperating) Proposed Long Term 1.02 CRISIL D (Issuer Not Bank Loan Facility Cooperating) Term Loan 15.00 CRISIL D (Issuer Not Cooperating) Term Loan 3.58 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with HMCL for obtaining information through letter and email dated July 28, 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 HMCL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on HMCL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of HMCL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. HMCL, set up in 1890, manufactures jute products with a capacity of 44,000 tonnes per annum. The company manufactures a wide range of products, including hessian, jute yarn, jute cloth, and decorative bags. It has leased out warehouses built on part of its land-bank, and receives an annual rental income of around INR45 million. ICOMM TELE: ICRA Withdraws D Rating on INR452.50cr Term Loan ------------------------------------------------------------ ICRA has withdrawn the Long-term and Short-Term Ratings assigned to Icomm Tele Limited at the request of the company and based on the No Due certificate (NDC) received from its banker. The Key Rating Drivers, Liquidity Position, Rating Sensitivities, Key financial indicators have not been captured as the rated instruments are being withdrawn. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 347.17 [ICRA]D; ISSUER NOT COOPERATING; Fund based Withdrawn Cash Credit Long-term– 452.50 [ICRA]D; ISSUER NOT COOPERATING; Fund based Withdrawn Term Loan Long Term- 627.44 [ICRA]D; ISSUER NOT COOPERATING; Unallocated Withdrawn Short Term- 963.53 [ICRA]D; ISSUER NOT COOPERATING; Non-Fund Withdrawn Based Others Incorporated in 1997, UWWPL is involved in timber sawing and trading. It is promoted and managed by members of the Goyal family, Mr. Vinod Goyal, Mr. Virendra Goyal, Mr. Abhishek Goyal, Mr. Abhijit Goyal and Mr. Animesh Goyal. UWWPL imports radiata pinewood, which is a softwood species of timber found abundantly in New Zealand. The company's sawing facility is located over 12 acres at Gandhidham in the Kutch District of Gujarat, near Kandla port and has a capacity of 60,000 CBM per annum. The timber processed by the company finds application in manufacturing of wooden pallet box used in the packaging industry and as scaffold planks in construction activities. INDIA CARTONS: CARE Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------- CARE Ratings said the rating for the bank facilities of India Cartons (IC) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 10.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated July 21, 2022, placed the rating(s) of IC under the 'issuer non-cooperating' category as IC had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. IC continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 6, 2023, June 16, 2023, June 26, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). India Cartons (IC) was established by Mr. C. Madanraj and his son, Mr. M. Naresh Kumar on April 08, 2010 as a partnership concern in Ambur, Tamil Nadu. The firm is engaged in manufacturing of packaging material for the footwear industry. The main products manufactured by IC include cartons, corrugated cartons and rigid boxes. The entity sells its finished products to customers located in Tamil Nadu, Karnataka and Indore. The major raw material being duplex boards are procured from suppliers in Tamil Nadu and China for finer quality. The manufacturing unit is also located in Ambur, Tamil Nadu. JOSEPH LESLIE: ICRA Keeps B+ Debt Ratings in Not Cooperating ------------------------------------------------------------ ICRA has kept the Long-Term and Short-term rating of Joseph Leslie & Company LLP in the 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]B+(Stable)/[ICRA]A4; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 5.25 [ICRA]B+ (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Cash Credit to remain under 'Issuer Not Cooperating' category Short Term- 2.10 [ICRA]A4 ISSUER NOT Non Fund Based COOPERATING; Rating continues Others to remain under 'Issuer Not Cooperating' category Long Term/ 1.25 [ICRA]B+(Stable)/[ICRA]A4; Short Term- ISSUER NOT COOPERATING; Unallocated Rating Continues to remain under issuer not cooperating category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Joseph Leslie & Company LLP (JLC) was formed as a partnership firm in 1933 and was later converted into a limited liability partnership in January 2011. The operations of the firm are managed by Ms. Wendy Leslie Pereira and Ms. Carole Leslie Roy who have an experience of over two decades in the industrial PPE industry. JLC manufactures and trades in industrial PPE through its distribution network of more than 20 distributors across India. KRISHNA BUILDCON: CRISIL Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Shree Krishna Buildcon Private Limited (SKBPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term 0.5 CRISIL D (Issuer Not Bank Loan Facility Cooperating) Term Loan 25 CRISIL D (Issuer Not Cooperating) Term Loan 29.5 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SKBPL 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 SKBPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SKBPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SKBPL continues to be 'CRISIL D Issuer Not Cooperating'. Incorporated in 2004 and promoted by Agrawal and Goyal families, SKBPL is developing a commercial real estate project, Palm Mall, in Korba, Chhattisgarh. The mall is spread across 231,218 square feet and is expected to cost INR110 crore. The project is likely to be completed in fiscal 2018. MANIKYAM POULTRY: CARE Keeps D Debt Rating in Not Cooperating ------------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of Manikyam Poultry Farm (MPF) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 10.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated July 18, 2022, placed the rating(s) of MPF under the 'issuer non-cooperating' category as MPF had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. MPF continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 3, 2023, June 13, 2023, June 23, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Manikyam Poultry Farm (MPF) was established in the year 2007 by Mr. I. Siva Koti Reddy, K.Rama Mohan Rao and others. The firm is engaged in farming of egg, laying poultry birds (chickens) and trading of eggs, cull birds and their manure. The firm sells its products such as eggs and cull birds to retailers through own sales personnel as well as through dealers in the states of Mumbai, Goa, Belgaum and Bangalore. The firm mainly buys chicks (small chickens) and inputs for feeding of birds like rice broken, maize, sun flower oilcake, shell grit, minerals and soya from local traders. MAXWELL HOSPITAL: ICRA Withdraws B+ Rating on INR60cr LT Loan ------------------------------------------------------------- ICRA has withdrawn the rating assigned to the bank facilities of Maxwell Hospital And Research Centre Private Limited at the request of the company and in accordance with ICRA's policy on withdrawal. However, ICRA does not have information to suggest that the credit risk has changed since the time the rating was last reviewed. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term 60.00 [ICRA]B+ (Stable); withdrawn Fund-based– Proposed The Key rating drivers, Liquidity position, Rating sensitivities and Key financial indicator have not been captured as the rated instruments are being withdrawn. Maxwell Hospital and Research Centre Private Limited was incorporated on December 22, 2020, by a group of six experienced doctors and two healthcare industry experts who wanted to set up a 178-bed, multi speciality hospital in Siliguri, West Bengal. The hospital's key proposed therapeutic mix includes secondary and tertiary care specialities such as nephrology, orthopaedics ENT, neurology, urology, critical care, cardiology, gynaecology, pulmonology and endocrinology. The company purchased the land for the hospital in late FY2023 and has started construction work. The hospital is expected to commence operations by April 2025. MEHTA BROTHERS: ICRA Keeps B+ Debt Ratings in Not Cooperating ------------------------------------------------------------- ICRA has retained the Long-Term rating of Mehta Brothers Gems Private Limited in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]B+(Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 35.00 [ICRA]B+ (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Cash Credit to remain under 'Issuer Not Cooperating' category Long Term- (35.00) [ICRA]B+ (Stable) ISSUER NOT Interchangeable COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Mehta Brothers Gems Private Limited was established in 1966 as a partnership firm by Mr. Dinesh Mehta & Mr. Jagdish Mehta. In 2005, the entity's legal status was converted into a private limited company. The company is engaged in the business of manufacturing cut and polished diamond of size ranging medium to high carat in different shapes and colour. The company has its registered office at Mumbai and dedicated processing facilities at Borivali and Goregaon in Mumbai. NARAYAN FRUITS: CARE Keeps C Debt Rating in Not Cooperating ----------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of Narayan Fruits & Vegetables Cold Storage Private Limited (NFVCSPL) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 5.50 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated August 1, 2022, placed the rating(s) of NFVCSPL under the 'issuer non-cooperating' category as NFVCSPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. NFVCSPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 17, 2023, June 27, 2023, July 8, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Etawah, Uttar Pradesh based Narayan Fruits & Vegetables Cold Storage Private Limited was incorporated in 2016 and commenced its operation February, 2017. The company is being manage by Mr. Nikhil Aggarwal. NFVCSPL is engaged in the business of renting of its cold storage facility for potatoes to the local farmers in Etawah from its cold storage unit with multi chambers. NEHA INTERNATIONAL: CARE Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of Neha International Ltd. (NIL) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 5.60 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 23.50 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Rationale and key rating drivers CARE Ratings Ltd. had, vide its press release dated July 26, 2021, placed the rating of NIL under the 'issuer non-cooperating' category as NIL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. The company continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and email dated June 13, 2023, June 23, 2023 and August 4, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above ratings. Established in 1993, Neha International Ltd (NIL) is engaged into trading of agricultural products mainly Maize, Soya Bean, Sun Flower, Edible oils etc. The company has been promoted by Mr G Vinod Reddy, who has about two decades of experience in the line of activity. The company got listed on BSE expand in February 1995. Neha at the group level is into floriculture space also exporting cut roses to Europe and Middle Eastern markets in Saudi Arabia, Qatar and UAE, through its subsidiaries (based in Ethiopia) and step down subsidiaries. Being primarily into trading, the company procures the agricultural products from small local traders and sells it to big traders & poultry farms domestically. RAJ OVERSEAS: CARE Keeps C Debt Rating in Not Cooperating --------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of Raj Overseas (RO) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 7.20 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated August 4, 2022, placed the rating(s) of RO under the 'issuer non-cooperating' category as RO had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. RO continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 20, 2023, June 30, 2023, July 10, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Agra, Uttar Pradesh based Raj Overseas (RO) was established in October, 2010 by Mr. Kaustubh Raj Yadav and Mrs. Rekha Yadav. However, it is currently being managed by Mr. Kaustubh Raj Yadav and Mr. Rajveer Singh Yadav sharing profit and losses equally. The firm is engaged in manufacturing of footwear products like shoes, slippers, sandals etc. The manufacturing facility of the company is located at Agra in Uttar Pradesh. RAJA COTTON: CARE Keeps D Debt Rating in Not Cooperating -------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Raja Cotton Industries (RCI) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.25 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated July 27, 2022, placed the rating(s) of RCI under the 'issuer non-cooperating' category as RCI had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. RCI continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 12, 2023, June 22, 2023, July 2, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). RCI is a partnership firm established by five partners led by Mr. Harunbhai Bilakhiya and Mr. Sajidbhai Bilakhiya in the year 2009. Mr. Harunbhai Bilakhiya and Mr. Sajidbhai Bilakhiya has 33 years and 13 years of industry experience respectively. RCI is engaged into the business of cotton ginning & pressing and seed crushing. Its plant located at Amreli (Gujarat) with an installed capacity of 200 bales per day as on March 31, 2016 and is spread across 3,500 sq. yard of area. RAMSONS ORGANICS: CARE Cuts Rating in INR5.14cr LT Loan to C ------------------------------------------------------------ CARE Ratings has revised the ratings on certain bank facilities of Ramsons Organics Limited (ROL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 5.14 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category and Revised from CARE B-; Stable Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated July 20, 2022, placed the rating(s) of ROL under the 'issuer non-cooperating' category as ROL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. ROL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 5, 2023, June 15, 2023, June 25, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings have been revised on account of non-availability of requisite information. Further it also considers decline in scale of operations coupled with continued losses and increase in overall debt in FY22 over FY21. Ramsons Organics Limited (ROL) was incorporated in 1993 and promoted by Mr. Yogesh Sachdeva primarily with the objective of exporting building stones overseas. ROL is the flagship company of Ramsons Group which is involved in varied business segments like real estate development, Building stones, Home décor and Renewable energy through different group companies. RAVICHANDRA TEXTILES: CRISIL Keeps D Ratings in Not Cooperating --------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Sri Ravichandra Textiles Private Limited (SRTPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 18 CRISIL D (Issuer Not Cooperating) Long Term Loan 11.22 CRISIL D (Issuer Not Cooperating) Proposed Long Term 10.28 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with SRTPL 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 SRTPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SRTPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SRTPL continues to be 'CRISIL D Issuer Not Cooperating'. SRTPL, incorporated in 2010, manufactures cotton yarn, primarily in counts of 10s, 13s, 16s, and 20s. The company's manufacturing facilities are in Guntur (Andhra Pradesh), and started commercial production in November 2012. SAMBHAV EXIM: CARE Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of Sambhav Exim (SE) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 8.97 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Long Term/ 6.00 CARE D/CARE D; ISSUER NOT Short Term COOPERATING; Rating continues Bank Facilities to remain under ISSUER NOT COOPERATING category Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated July 21, 2022, placed the rating(s) of SE under the 'issuer non-cooperating' category as SE had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. SE continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 06, 2023, June 16, 2023, June 26, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Established in September, 2015, Ahmedabad (Gujarat) based Sambhav Exim (SE) is a partnership firm managed by two partners viz. Mr. Vijaykumar P. Shah and Mr. AnkitKumar P. Shah. SE is setting up a plant in Ularia, Ahmedabad to manufacture woven sack bags, BOPP woven bags and flexible pouches with a proposed manufacturing capacity of 3,600 metric tons of packaging material per annum as on March 31, 2017. The products manufactured by SE are used in various industries such as agriculture, chemical, fertilizers, food etc. Both the partners have over a decade of experience in packaging industry. SATYA SUBAL: ICRA Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------- ICRA has kept the Long-Term and Short-term rating of Satya Subal Himghar Private Limited in the 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 5.62 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category Long-term– 4.28 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Term Loan 'Issuer Not Cooperating' Category Short-term 0.10 [ICRA]D; ISSUER NOT COOPERATING; Non-fund based Rating continues to remain under 'Issuer Not Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Incorporated in April 2012, Satya Subal Himghar Private Limited (SSHPL) is promoted by the West Bengal-based Ghosh family. The company provides cold storage facility to potato farmers and traders on a rental basis with a storage capacity of 17,800 metric tonnes (MT). The cold-storage unit is located at Baghapukur, in Paschim Midnapore, West Bengal. SIDDHI PAPER: CARE Lowers Rating on INR7cr LT Loan to C ------------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of Siddhi Paper Mills Private Limited (SPMPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 7.00 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category and Revised from CARE B; Stable Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated July 26, 2022, placed the rating(s) of SPMPL under the 'issuer non-cooperating' category as SPMPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. SPMPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 11, 2023, June 21, 2023, July 1, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings have been revised on account of non-availability of requisite information. Further, the decline in scale of operations as well as continued losses leading erosion of networth base in FY22 compared to FY21. Siddhi Paper Mills Private Limited (SPMPL) is a Nashik (Maharashtra) based, Private Limited Company and was incorporated in the October 2019. However, the operations of the company commenced in September 2020. SPMPL is engaged in the business of manufacturing of Kraft Paper (recycling unit). The facility is located at Malegaon, Nashik, Maharashtra. SPMPL procures raw material i.e., waste boxes and corrugations boxes from local dealers in Maharashtra. The company sells the finished products majorly to the dealers based in Maharashtra. SIPANI PROPERTIES: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Sipani Properties Private Limited (Sipani) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Lease Rental 25 CRISIL D (Issuer Not Discounting Loan Cooperating) Lease Rental 3.4 CRISIL D (Issuer Not Discounting Loan Cooperating) Overdraft Facility 5 CRISIL D (Issuer Not Cooperating) Proposed Long Term 5.1 CRISIL D (Issuer Not Bank Loan Facility Cooperating) Term Loan 16.5 CRISIL D (Issuer Not Cooperating) Term Loan 20 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with Sipani 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 Sipani, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on Sipani is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of Sipani continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Sipani, set up in 1997 and managed by Mr R K Sipani and his son Mr Dinesh Sipani, develops residential real estate in Bengaluru. The company was into manufacturing automobile components till 2007, since when it has been in the real estate business. THERDOSE PHARMA: ICRA Lowers Rating on INR9.53cr LT/ST Loan to D ---------------------------------------------------------------- ICRA has revised the ratings on certain bank facilities of Therdose Pharma Pvt. Ltd. (TPPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 7.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating downgraded from Cash Credit [ICRA]B (Stable) and continues to remain under 'Issuer Not Cooperating' category Long Term/ 9.53 [ICRA]D/[ICRA]D; ISSUER NOT Short Term- COOPERATING; Rating downgraded Unallocated from [ICRA]B (Stable)/[ICRA]A4 and continues to remain under 'Issuer Not Cooperating' Category Short-term– 3.00 [ICRA]D; ISSUER NOT COOPERATING; Non Fund based Rating downgraded from Others [ICRA]A4 and continues to remain under 'Issuer Not Cooperating' category Long-term– 5.47 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating downgraded from Term Loan [ICRA]B (Stable) and continues to remain under 'Issuer Not Cooperating' category Rationale Material event The rating downgrade reflects Delay in Debt Repayment as mentioned in the publicly available sources. Impact of material event The rating is based on limited information on the entity's performance since the time it was last rated in June 2022. The lenders, investors and other market participants are thus advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity, despite the downgrade. ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Therdose Pharma Pvt. Ltd. (TPPL) was incorporated in 2003 in the name of Oshadha Therapeutical Private Limited in the owned premises in Hyderabad. In 2005, the company's name was changed to Therdose Pharma Private Limited (TPPL). The manufacturing unit cum administration office of the company is situated in Hyderabad. The company is engaged in drug development and contract research, scale up and technology transfer, manufacturing of oncology and non-oncology formulations. Until August 2014, TPPL was subsidiary of Scidose LLC, U.S. and later became an Indian company. The company has capacity to manufacture 0.12 crore oncology sterile injections, and 1.85 crore oncology oral solids per annum. VIJAYA LAKSHMI: ICRA Withdraws B+ Rating on INR45cr LT Loan ----------------------------------------------------------- ICRA has withdrawn the rating assigned to the bank facilities of Sri Vijaya Lakshmi Raw & Boiled Rice Mill at the request of the company and based on the No Objection Certificate (NOC) received from the bankers, and in accordance with ICRA's policy on withdrawal of credit ratings. However, ICRA does not have information to suggest that the credit risk has changed since the time the rating was last reviewed. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term– 45.00 [ICRA]B+ (Stable); withdrawn Fund based– Cash credit Long term– 3.00 [ICRA]B+ (Stable); withdrawn Unallocated The Key Rating Drivers, Liquidity Position, Rating Sensitivities have not been captured as the rated instruments are being withdrawn. Sri Vijaya Lakshmi Raw & Boiled Rice Mill (SVLRM) was incorporated in 1992 as a partnership firm and has been engaged in the milling of paddy and produces raw and boiled rice. The firm has a milling unit in Nadakuduru (East Godavari district) of Andhra Pradesh with an installed processing capacity of 3,19,500 MTPA. The firm also has 1-MW biomass-based power plant used for captive consumption. The firm sells rice under its own brands, namely Horse, Hansa and GHNR, especially in Kerala. ===================== N E W Z E A L A N D ===================== COASTAL LOG: Creditors' Proofs of Debt Due on Sept. 5 ----------------------------------------------------- Creditors of Coastal Log Haulage Limited are required to file their proofs of debt by Sept. 5, 2023, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Aug. 8, 2023. The company's liquidators are: Steven Khov Kieran Jones Khov Jones Limited PO Box 302261 North Harbour Auckland 0751 ENIGMA CAFE: Creditors' Proofs of Debt Due on Sept. 4 ----------------------------------------------------- Creditors of Enigma Cafe Limited are required to file their proofs of debt by Sept. 4, 2023, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Aug. 3, 2023. The company's liquidator is: Heath Gair Palliser Insolvency PO Box 57124 Mana Porirua 5247 KAUKAPAKAPA VILLAGE: Court to Hear Wind-Up Petition on Sept. 15 --------------------------------------------------------------- A petition to wind up the operations of Kaukapakapa Village Centre Company Limited will be heard before the High Court at Auckland on Sept. 15, 2023, at 10:00 a.m. Reforma Limited filed the petition against the company on July 26, 2023. The Petitioner's solicitor is: Daniel Mark Hughes Level 6 66 Wyndham Street Auckland SAINT LIMITED: Creditors' Proofs of Debt Due on Sept. 5 ------------------------------------------------------- Creditors of The Saint Limited are required to file their proofs of debt by Sept. 5, 2023, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Aug. 7, 2023. The company's liquidators are: Gareth Russel Hoole Raymond Paul Cox Ecovis KGA Limited, Chartered Accountants PO Box 37223 Parnell Auckland 1151 WISHBONE: Cafe Chain Wishbone Goes Into Liquidation --------------------------------------------------- Stuff.co.nz reportst that well-known cafe chain Wishbone has reportedly gone into liquidation. According to Stuff, stores around Wellington were closed on Aug. 15 with a sign on the Featherston St store reading the shop was closed until further notice. Its website has also been taken down and a liquidator, Mohammed Tazleen Nasib, was appointed to The Woodward Group on Aug. 14, according to the Companies Register website. Founders of Wishbone, Andrea Gibson Scarlett and Shayne Scarlett, are directors of The Woodward Group. Stuff relates that John Crocker, of Unite Union, said it had been contacted by the partner of a Wellington staff member on Aug. 15 to say the company had gone into liquidation. According to Stuff, Wellington Airport spokesperson Phil Rennie said the store there was also closed on Aug. 15. Wishbone was not answering its calls, he said, and he could not confirm the reason for its closure. The Wellington-based company first opened on Woodward St in March 2000, "starting with a sandwich" and expanding its stores to Auckland in 2004. In 2003, it was ranked number 35 in the Deloitte Fast 50 list of companies. "People are getting busier, but they still believe in eating well. We're proud to offer an affordable, healthy and convenient option for people in a hurry who appreciate quality food," CEO Andrea Gibson Scarlett in 2004. It was a main supplier to the Wellington Hospital cafeteria and a common sight at domestic airports, Stuff says. According to the Otago Daily Times, Wishbone opened its 23rd store in Otago in 2012, where Andrea Gibson Scarlett grew up. Newshub reported it heard from a worker at Wishbone's food production plant in Wellington that liquidators arrived and closed the business. A Unite Union spokesperson also told Newshub an employee was "fired on the spot" with their redundancy taking effect immediately. XTREME FLOORING: Court to Hear Wind-Up Petition on Aug. 24 ---------------------------------------------------------- A petition to wind up the operations of Xtreme Flooring Limited will be heard before the High Court at Invercargill on Aug. 24, 2023, at 11:45 a.m. The Commissioner of Inland Revenue filed the petition against the company on May 17, 2023. The Petitioner's solicitor is: Gabrielle McGillivray Inland Revenue, Legal Services PO Box 1782 Christchurch 8140 ================= S I N G A P O R E ================= FEUDALITE TRADING: Court Enters Wind-Up Order --------------------------------------------- The High Court of Singapore entered an order on Aug. 11, 2023, to wind up the operations of Feudalite Trading Pte. Ltd. RHB Bank Berhad 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 HUMAN CAPITAL: Court to Hear Wind-Up Petition on Sept. 8 -------------------------------------------------------- A petition to wind up the operations of Human Capital Alpha Pte. Ltd. (formerly known as Funds Partnership (Asia) Pte. Ltd.) will be heard before the High Court of Singapore on Sept. 8, 2023, at 10:00 a.m. New Excellent Investment Limited filed the petition against the company on Aug. 8, 2023. The Petitioner's solicitors are: Dentons Rodyk & Davidson LLP 80 Raffles Place #33-00 UOB Plaza 1 Singapore 048624 PACE ENTERPRISE: Creditors' Meetings Set for Aug. 29 ---------------------------------------------------- Pace Enterprise Pte Ltd and Pace Enterprise Holdings Pte Ltd will hold a meeting for its creditors on Aug. 29, 2023, at 10:00 a.m. and 11:30 a.m., respectively, at 8 Wilkie Road, #03-08, Wilkie Edge, Singapore 228095 and using audio-visual conference tool. Agenda of the meeting includes: a. to receive a statement of the Company's affairs together with a list of creditors and the estimated amounts of their claims; b. to appoint liquidators; c. to appoint a committee of inspection of not more than 5 members, if thought fit; and d. any other business. Messrs. Goh Wee Teck and Lin Yueh Hung were appointed as joint and several Provisional Liquidators of the company. URBAN FARM: Creditors' Proofs of Debt Due on Sept. 14 ----------------------------------------------------- Creditors of Urban Farm Consultancy Pte. Ltd. are required to file their proofs of debt by Sept. 14, 2023, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Aug. 15, 2023. The company's liquidators are: Lee Yin Chen Loo Min Min 164 Bukit Merah Central #03-3655 Singapore 150164 YONGNAM HOLDINGS: Court Enters Judicial Management Order -------------------------------------------------------- The High Court of Singapore entered an order on Aug. 14, 2023, to place Yongnam Holdings Limited and Yongnam Engineering & Construction (Private) Limited under judicial management. United Overseas Bank Ltd filed the petition against the company on Aug. 4, 2023. The company's judicial managers are Toh Ai Ling, Bob Yap Cheng Ghee, and Chan Kwok Shing, Adrian. ================= S R I L A N K A ================= SRI LANKA: IMF Staff to Visit in September for 1st Programme Review ------------------------------------------------------------------- Reuters reports that an International Monetary Fund (IMF) staff team will visit Colombo in a month's time for the first review on Sri Lanka's loan programme, a spokesperson said on Aug. 15. The Washington-based lender approved a nearly $3 billion bailout for crisis-hit Sri Lanka in March, Reuters recalls. The Asian island is struggling with its worst financial crisis in over seven decades, triggered by a severe shortage of foreign exchange. According to Reuters, the first review will take place from September 14 through the 27 and considers the programme's performance until end-June, and if approved by both the staff and the executive board, would allow a disbursement of around $338 million. Reuters says the previous IMF's staff mission to the country was in May, when the Fund's authorities said that "the overall macroeconomic and policy environment remains challenging." About Sri Lanka Sri Lanka, formerly known as Ceylon and officially the Democratic Socialist Republic of Sri Lanka, is an island country in South Asia. It lies in the Indian Ocean, southwest of the Bay of Bengal, and southeast of the Arabian Sea; it is separated from the Indian subcontinent by the Gulf of Mannar and the Palk Strait. Sri Lanka shares a maritime border with India and the Maldives. Sri Jayawardenepura Kotte is its legislative capital, and Colombo is its largest city and financial centre. The island nation defaulted on its foreign debt for the first time n its history in April last year as the worst financial crisis since independence from Britain in 1948 crushed its economy. As recently reported in the Troubled Company Reporter-Asia Pacific, S&P Global Ratings, on July 21, 2023, lowered its long-term local currency sovereign credit rating on Sri Lanka to 'CC' from 'CCC-'. At the same time, S&P affirmed the other ratings on Sri Lanka, including the 'SD' long-term foreign currency rating. The outlook on the 'CC' long-term local currency sovereign credit rating is negative. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman, Editors. Copyright 2023. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. *** End of Transmission ***