/raid1/www/Hosts/bankrupt/TCRAP_Public/230825.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
Friday, August 25, 2023, Vol. 26, No. 171
Headlines
A U S T R A L I A
ALTUS RENEWABLES: Indicative Bids Deadline Set September 15
GREGORY INVESTMENT: First Creditors' Meeting Set for Aug. 30
LIGHT TRUST 2021-1: S&P Raises Class E Notes Rating to BB+(sf)
LIGHT TRUST 2023-1: S&P Assigns Prelim. BB (sf) Rating on F Notes
MODCO RESIDENTIAL: First Creditors' Meeting Set for Aug. 28
PUZZLE COFFEE: Second Creditors' Meeting Set for Aug. 28
RESIMAC PREMIER 2023-1: S&P Assigns Prelim. 'B' Rating on F Notes
SELECT AFSL: Second Creditors' Meeting Set for Aug. 29
SPARKLING WHITE: Placed Into Voluntary Liquidation
C H I N A
COUNTRY GARDEN: Property Crisis Leaves Company with Unpaid Workers
SINGULATO MOTORS: Enters Bankruptcy Liquidation
H O N G K O N G
DEER INVESTMENT: S&P Withdraws 'B-' LongTerm Issuer Credit Rating
TELEVISION BROADCASTS: H1 Net Loss Widens to HK$407 Million
I N D I A
AGASTI SAHAKARI: CARE Keeps D Debt Ratings in Not Cooperating
AHUJA AUTOMOBILES: CARE Keeps D Debt Rating in Not Cooperating
ASSOCIATED APPLIANCES: CRISIL Keeps D Ratings in Not Cooperating
AVVAS INFOTECH: CRISIL Keeps D Debt Ratings in Not Cooperating
CHEEMA SPINTEX: Insolvency Resolution Process Case Summary
COFFEE DAY: Insolvency Resolution Process Case Summary
DEV KIRAN: CARE Lowers Rating on INR26.22cr LT Loan to D
DUGGAR FIBER: CARE Keeps D Debt Rating in Not Cooperating Category
EXCEL VEHICLES: CARE Keeps D Debt Rating in Not Cooperating
GEMINI PACK: CARE Keeps D Debt Rating in Not Cooperating Category
HERO ELECTRIC: CARE Lowers Rating on INR40cr Loan to D
HOTEL RATHI: CRISIL Keeps D Debt Rating in Not Cooperating
INESH ACCERRO: Insolvency Resolution Process Case Summary
INTERJEWEL DESIGNS: CARE Keeps D Debt Ratings in Not Cooperating
JAY ACE TECHNOLOGIES: Insolvency Resolution Process Case Summary
JET AIRWAYS: CoC Agrees to a 30-day Extension But Differs on Mode
KADALAI MITTAI: CARE Lowers Rating on INR13cr Loan to D
KARAMHANS FOODS: CARE Lowers Rating on INR10cr LT Loan to C
KARAN AUTOMOTIVES: Insolvency Resolution Process Case Summary
KUKRU WIND: Ind-Ra Affirms BB+ Term Loan Rating
LIBRA AUTO: CARE Keeps D Debt Rating in Not Cooperating Category
MAAJAGDAMBE PAPER: CRISIL Keeps D Debt Ratings in Not Cooperating
MADRAS SILKS: Ind-Ra Cuts LongTerm Issuer Rating to BB+
MAGNUM STEELS: CARE Keeps D Debt Rating in Not Cooperating
MALEBENNUR FOODS: CRISIL Keeps B Debt Ratings in Not Cooperating
NEUEON TOWERS: CARE Keeps D Debt Ratings in Not Cooperating
PANCHANAN COLD: CARE Keeps D Debt Rating in Not Cooperating
POOJA SPONGE: CRISIL Keeps D Debt Ratings in Not Cooperating
RISHABH BUILDWELL: CARE Keeps D Debt Rating in Not Cooperating
S.K. RICE: CRISIL Keeps D Debt Rating in Not Cooperating Category
S.S MEDICAL: CRISIL Keeps C Debt Rating in Not Cooperating
S.S.S. RICE: CARE Lowers Rating on INR16.15cr LT Loan to D
SALASAR INDUSTRIES: CRISIL Keeps D Debt Rating in Not Cooperating
SAMDARI STRIPS: Insolvency Resolution Process Case Summary
SAVIOUR MINES: CARE Keeps D Debt Rating in Not Cooperating
SCHON ULTRAWARES: Insolvency Resolution Process Case Summary
SHAILA CLUBS: Insolvency Resolution Process Case Summary
SIMPLEX CASTINGS: Ind-Ra Moves D Issuer Rating to Non-Cooperating
SPICEJET LTD: Ordered to Pay INR100 Crore to Kalanithi Maran
SRIKANTH INTERNATIONAL: CARE Keeps D Rating in Not Cooperating
SRINIVASA FASHIONS: CARE Keeps D Debt Ratings in Not Cooperating
STAR PAPER: Ind-Ra Withdraws BB LongTerm Issuer Rating
TALWAR MOBILES: CARE Keeps D Debt Rating in Not Cooperating
TANISH NIRMITI: Insolvency Resolution Process Case Summary
TIGER 4: CRISIL Keeps B+ Debt Ratings in Not Cooperating
TUBE TURN: CRISIL Lowers Rating on Long and Short Term Loans to D
VIJAI ELECTRICALS: Ind-Ra Affirms BB- LongTerm Issuer Rating
VIJETHA SUPER: CRISIL Keeps D Debt Ratings in Not Cooperating
[*] INDIA: Banking System Liquidity in Deficit in FY2024
J A P A N
UNIVERSAL ENTERTAINMENT: S&P Affirms 'CCC+' LT ICR on Legal Risk
N E W Z E A L A N D
BEE BIO: Creditors' Proofs of Debt Due on Sept. 29
HERON CAMPERS: Creditors' Proofs of Debt Due on Oct. 12
HOME&WE! LIMITED: Court to Hear Wind-Up Petition on Aug. 31
MARINE & INDUSTRIAL: Creditors' Proofs of Debt Due on Sept. 15
WILLOW TRANSPORT: Court to Hear Wind-Up Petition on Aug. 31
S I N G A P O R E
CHINA GREAT: Final Meeting Set for October 10
VALE SHIPPING: Members' Final Meeting Set for Sept. 22
S O U T H K O R E A
LIME ASSET: Financial Regulator Finds More Alleged Law Violations
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A U S T R A L I A
=================
ALTUS RENEWABLES: Indicative Bids Deadline Set September 15
-----------------------------------------------------------
Australian Financial Review reports that FTI Consulting has given
wood pellets maker Altus Renewables' suitors until September 15 to
prepare their indicative bids for the business, which landed in
receivership last week.
AFR relates that a flyer mailed out to prospective buyers on Aug.
22 said FTI was open to offers for the entire company or for its
assets. It showed no preference for a deed of company arrangement,
asset sale or a combination for the two structures.
Due diligence is slated to begin on August 30 following expressions
of interest on August 29. After receiving non-binding indicative
offers on September 15, FTI will assess them and funding
arrangements before setting a timeline for final bids, AFR relays.
Altus has production facilities close to forestry areas with access
to port infrastructure. Its Tuan Facility has a 125,000 tonnes
annual capacity and is running at 90,000 tonnes, according to the
flyer. Prospective bidders were told that the company is in the
third year of a 10-year offtake. It also has a development site,
the Green Triangle Project, near Portland.
Queensland-based Altus used pine sawdust to make pellets, supplying
the product as a complementary source of fuel for power stations.
It was hurt by rising raw material costs, which ate into
profitability despite rising revenues.
It appointed McGrathNicol as the administrators this month, which
was followed by lender Mitsui calling FTI as the receivers, AFR
discloses. Mitsui, which is an offtake counterparty as well as a
lender, was owed AUD14.5 million at June last year. Export Finance
Australia was owned AUD2.1 million and National Australia Bank had
a lease facility tapped for AUD118,000.
It is a complete U-turn for the company, which was founded in 2000
by former Alcoa of Australia chairman Dennis Waddell, the report
notes. Only last year it had RBC Capital Markets and Gresham
talking up its experience, green potential, offtake agreements and
proximity to port infrastructure in hopes of bringing in an
investor.
It is a similar pitch this time around. It just happens to be
coming from the receivers and managers, AFR notes.
GREGORY INVESTMENT: First Creditors' Meeting Set for Aug. 30
------------------------------------------------------------
A first meeting of the creditors in the proceedings of The Gregory
Investment Group Pty Limited will be held on Aug. 30, 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. 18, 2023.
LIGHT TRUST 2021-1: S&P Raises Class E Notes Rating to BB+(sf)
--------------------------------------------------------------
S&P Global Ratings raised its ratings on four classes of notes
issued by Perpetual Corporate Trust Ltd. as trustee for Light Trust
2021-1. At the same time, S&P affirmed its ratings on two classes
of notes. The transaction is a securitization of prime residential
mortgages originated by Heritage and People's Choice Ltd.
The raised ratings reflect increasing credit support and a
declining expectation of losses as the pool loan-to-value ratio
decreases. Strong cash flows are supportive of the higher rating
levels, and arrears levels remain low. As of June 30, 2023, the
pool has a balance of about A$340 million and a pool factor of
about 56.7%. The pool's weighted-average loan-to-value ratio is 56%
and weighted-average seasoning is 56 months.
Since close, arrears have been favorable compared with the Standard
& Poor's Performance Index (SPIN) for prime loans. As of June 30,
2023, loans more than 30 days in arrears make up 0.44% of the pool,
of which 0.15% are more than 90 days in arrears.
S&P has limited the rating upgrades on the class C, class D, and
class E notes due to other moderating factors, such as the dollar
amount of credit support provided by the class F notes, which may
decrease, given the transaction is likely to start paying pro rata
imminently.
The various mechanisms to support liquidity within the
transactions, including an amortizing liquidity facility and
principal draws, are sufficient under our stress assumptions to
ensure timely payment of interest.
Ratings Raised
Light Trust 2021-1
Class B: to AA+ (sf) from AA (sf)
Class C: to AA- (sf) from A (sf)
Class D: to A- (sf) from BBB (sf)
Class E: to BB+ (sf) from BB (sf)
Ratings Affirmed
Light Trust 2021-1
Class A: AAA (sf)
Class AB: AAA (sf)
LIGHT TRUST 2023-1: S&P Assigns Prelim. BB (sf) Rating on F Notes
-----------------------------------------------------------------
S&P Global Ratings assigned its preliminary ratings to six of the
seven classes of prime residential mortgage-backed securities
(RMBS) to be issued by Perpetual Corporate Trust Ltd. as trustee
for Light Trust 2023-1. Light Trust 2023-1 is a securitization of
prime residential mortgages originated by Heritage and People's
Choice Ltd. (trading as Heritage Bank and People's Choice Credit
Union; HPC).
The preliminary ratings reflect:
-- S&P's view of the credit risk of the underlying collateral
portfolio, including the fact that this is a closed portfolio,
which means no further loans will be assigned to the trust after
the closing date.
-- S&P's view that the credit support is sufficient to withstand
the stresses it applies. This credit support for the rated notes
comprises note subordination and lenders' mortgage insurance on
22.16% of the portfolio.
-- S&P's expectation that the various mechanisms to support
liquidity within the transaction, including an excess revenue
reserve funded by available excess spread (subject to conditions),
principal draws, and a liquidity facility equal to 1.00% of the
outstanding note balance are sufficient under its stress
assumptions to ensure timely payment of interest.
-- The benefit of a standby fixed- to floating-rate interest-rate
swap to be provided by Westpac Banking Corp. to hedge the mismatch
between receipts from any fixed-rate mortgage loans and the
variable-rate RMBS.
-- The legal structure of the trust, which is established as a
special-purpose entity, and meets S&P's criteria for insolvency
remoteness.
Preliminary Ratings Assigned
Light Trust 2023-1
Class A, A$552.00 million: AAA (sf)
Class AB, A$24.00 million: AAA (sf)
Class B, A$10.20 million: AA (sf)
Class C, A$6.90 million: A (sf)
Class D, A$3.00 million: BBB (sf)
Class E, A$1.80 million: BB (sf)
Class F, A$2.10 million: Not rated
MODCO RESIDENTIAL: First Creditors' Meeting Set for Aug. 28
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of Modco
Residential Pty Ltd will be held on Aug. 28, 2023, at 10:00 a.m. at
the offices of GTS Advisory at Level 2, 68 St Georges Terrace in
Perth and via teleconference facility.
Mathieu Tribut of GTS Advisory was appointed as administrator of
the company on July 24, 2023.
PUZZLE COFFEE: Second Creditors' Meeting Set for Aug. 28
--------------------------------------------------------
A second meeting of creditors in the proceedings of Puzzle Coffee
Concepts Pty Ltd has been set for Aug. 29, 2023 at 11:00 a.m. at
the offices of Jirsch Sutherland at Level 30, 140 William Street in
Melbourne.
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. 28, 2023 at 11:00 a.m.
Glenn Anthony Crisp and Andrew Mattinson of Jirsch Sutherland were
appointed as administrators of the company on June 28, 2023.
RESIMAC PREMIER 2023-1: S&P Assigns Prelim. 'B' Rating on F Notes
-----------------------------------------------------------------
S&P Global Ratings assigned its preliminary ratings to eight
classes of prime residential mortgage-backed securities (RMBS) to
be issued by Perpetual Trustee Co. Ltd. as trustee for RESIMAC
Triomphe Trust - RESIMAC Premier Series 2023-1. RESIMAC Triomphe
Trust - RESIMAC Premier Series 2023-1 is a securitization of prime
residential mortgage loans originated by RESIMAC Ltd. (RESIMAC).
The preliminary ratings assigned reflect the following factors.
The credit risk of the underlying collateral portfolio and the
credit support provided to each rated class of notes are
commensurate with the ratings assigned. Subordination and lenders'
mortgage insurance (LMI) cover provide credit support. The credit
support provided to the rated notes is sufficient to cover the
assumed losses at the applicable rating stress. S&P's assessment of
credit risk takes into account RESIMAC's underwriting standards and
approval process, which are consistent with industrywide practices;
the strong servicing quality of RESIMAC; and the support provided
by the LMI policies on 18.8% of the portfolio.
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 cross-currency swap, the liquidity facility, the
principal draw function, and the provision of an extraordinary
expense reserve. S&P's analysis is on the basis that the notes are
fully redeemed by their legal final maturity date and S&P does not
assume the notes are called at or beyond the call date.
S&P's ratings also take into account the counterparty exposure to
Sumitomo Mitsui Banking Corp. as cross-currency swap provider and
liquidity facility provider as well as Westpac Banking Corp. as
bank account provider.
A cross-currency swap is provided to hedge the Australian dollar
receipts from the underlying assets and the yen payments on the
class A1 notes. The transaction documents for the cross-currency
swap and liquidity facility include downgrade language consistent
with S&P Global Ratings' counterparty criteria. S&P has also
factored into our ratings the legal structure of the trust, which
is established as a special-purpose entity and meets its criteria
for insolvency remoteness.
Preliminary Ratings Assigned
RESIMAC Triomphe Trust - RESIMAC Premier Series 2023-1
Class A1, JPY14,400.000 million: AAA (sf)
Class A2, A$525.000 million: AAA (sf)
Class AB, A$37.500 million: AAA (sf)
Class B, A$23.100 million: AA (sf)
Class C, A$6.900 million: A (sf)
Class D, A$2.770 million: BBB (sf)
Class E, A$2.480 million: BB (sf)
Class F, A$0.750 million: B (sf)
Class G, A$1.500 million: Not rated
SELECT AFSL: Second Creditors' Meeting Set for Aug. 29
------------------------------------------------------
A second meeting of creditors in the proceedings of Select AFSL Pty
Ltd has been set for Aug. 29, 2023 at 2:30 p.m. via virtual meeting
only.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Aug. 28, 2023 at 4:00 p.m.
Michael Gregory Jones of Jones Partners was appointed as
administrator of the company on July 24, 2023.
SPARKLING WHITE: Placed Into Voluntary Liquidation
--------------------------------------------------
Lucy Manly for Daily Mail Australia reports that a
multi-million-dollar teeth whitening business that amassed a
celebrity following has collapsed into voluntary liquidation to try
to recoup some money for out-of-pocket franchisees and
contractors.
Daily Mail Australia revealed last month that Sparkling White Smile
(SWS) founder Alison Egan had been accused of failing to pay bills
in a saga that dragged in celebrity hairdresser Joh Bailey and PR
queen Roxy Jacenko.
Two-weeks-on, the glamorous 28-year-old has placed her teeth
whitening business into the hands of liquidators, the report
relates citing documents filed with the Australian Securities and
Investments Commission (ASIC), the report says.
Sparkling White Smile, owes thousands of dollars to multiple
businesses and is the subject of several complaints to NSW Fair
Trading.
Stephen Hathway of Helm Advisory has been appointed as liquidator
to wind down the business, according to Daily Mail Australia.
Daily Mail Australia notes that the NSW Fair Trading Complaints
Register lists all businesses subject to 10 or more complaints in a
calendar month.
'This trader or individual does not appear on the Complaints
Register,' a spokesperson for NSW Fair Trading said.
Despite filing for liquidation on Aug. 21, Daily Mail Australia is
told the business was operating on Aug. 22.
An anonymous Instagram account has shared screenshots of messages
between Ms Egan and franchisees who say they are owed money or
products that have been paid for but never arrived.
Daily Mail Australia has spoken to several SWS franchisees who say
they have been met with excuses each time.
'I didn't personally have a huge amount of money owing to me only
small orders of consumables of which she would do everything in her
power to stall and make up excuses.' a former franchisee revealed.
'These were women that were sold a dream only to be made out to be
stupid for questioning where their products and money was and why
it was taking so long - the stories were all the same, she used
people's money to further enhance her fake lifestyle.' the source
added.
Sparkling White Smile was a Mobile Cosmetic teeth whitening company
in Australia.
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C H I N A
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COUNTRY GARDEN: Property Crisis Leaves Company with Unpaid Workers
------------------------------------------------------------------
Reuters reports that at an unfinished Country Garden residential
complex on the outskirts of the northern Chinese metropolis of
Tianjin, construction has slowed to a dull whirr and a few idle
workers roam a near-empty site.
"They haven't paid us since Chinese New Year (in January). We are
all worried," said a labourer surnamed Wang, 50, who said he had
stopped work at the Yunhe Shangyuan site last week.
The sprawling complex is one of two projects Reuters visited on
Aug. 18 in Tianjin, a port city of 14 million people about 135 km
(84 miles) southeast of Beijing. Both sites are run by Country
Garden, China's largest developer by sales volume before this year,
now mired in a debt crisis threatening to spill over to the wider
economy.
According to Reuters, construction had partially or fully stopped
at both sites - the larger one with a few rows of unfinished
five-storey apartment blocks and the other with lifeless cranes and
thick green scaffolding hanging over skeletal high-rises. Workers
at dorms on the sites complained of months without pay.
"I'm under a lot of pressure," said a worker at the Yunhe Shangyuan
site surnamed Wei, also in his 50s, who added that he had only
received a one-off living stipend of CNY4,500 (US$618) so far this
year, relays Reuters.
"I have a wife and kid who's about to return to school, as well as
elderly parents . . . Workers can't live on this."
Once considered one of the more financially sound developers,
Country Garden is now a bellwether of how the cycle has turned for
developers, Reuters notes.
Its financial woes have added to the debt crisis in China's real
estate sector, which accounts for roughly a quarter of the world's
second-largest economy, currently losing steam amid a housing slump
and weak consumer spending.
According to Reuters, a representative of Country Garden's Yunhe
Shangyuan project said in a Wechat statement its "registered
employees" were all being paid.
At the Yunjing Huating site, the government in June ordered
construction to be suspended to fix management problems, a project
representative told Reuters in a separate statement. It has since
passed inspection and work is expected to resume next week, the
person said, adding the suspension would have no impact on the
targeted completion date of October 2024.
Reuters relates that some workers are not employed directly by the
developer, the Yunjing Huating representative said, but by its
contractor, which "has promised to pay the workers' wages by the
end of this month".
The project contractor, Shenyang Tengyue Construction, did not pick
up calls from Reuters or respond to emails seeking comment.
The housing ministry did not comment on Reuters queries about
halting of construction in the property sector in general or
Country Garden in particular.
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.
SINGULATO MOTORS: Enters Bankruptcy Liquidation
-----------------------------------------------
Caixin Global reports that Singulato Motors, one of China's
earliest new-energy vehicle startups, entered bankruptcy
liquidation after allegedly raising $2.3 billion in funding without
delivering any vehicles.
Several entities related to Singulato started the winding-down
process in late June, according to a national bankruptcy cases
portal. The parent company, Zhiche Youxing Technology Shanghai Co.
Ltd., faced debt claims totaling CNY98.3 million ($13.5 million) as
of Aug. 20, Caixin discloses.
Singulato Motors -- https://www.singulato.com/ -- is a electric car
start-up that covers new energy vehicles, smart car systems,
vehicle networking services and solutions.
=================
H O N G K O N G
=================
DEER INVESTMENT: S&P Withdraws 'B-' LongTerm Issuer Credit Rating
-----------------------------------------------------------------
S&P Global Ratings withdrew its 'B-' long-term issuer credit rating
on Deer Investment Holdings Ltd. at the company's request. The
rating outlook on the plastic packaging company was stable at the
time of the withdrawal.
TELEVISION BROADCASTS: H1 Net Loss Widens to HK$407 Million
-----------------------------------------------------------
The Standard reports that Television Broadcasts said its first-half
net loss widened by 82 percent to HK$407 million from a year ago,
with no dividend declared.
However, the broadcaster expects to achieve positive earnings
before interest, taxes, depreciation and amortization in the second
half of 2023 and in the full year of 2024, The Standard says.
Total revenue in the first half fell 14 percent to HK$1.56 billion
from a year earlier, while income from its TV broadcasting segment
in the city grew 5 percent to HK$628 million, The Standard
discloses.
Its mainland business saw revenue fall 22 percent to HK$313 million
in the first six months but TVB expects the segment to recover in
the second half with some of its co-production dramas to be aired
later this year.
According to The Standard, TVB said it has signed a new agreement
with Tencent's video streaming platform, under which it will
co-produce four dramas with Tencent Video and provide 2,000
episodes of its TV dramas to stream on the platform.
Meanwhile, its e-commerce revenue fell 41 percent to HK$271
million, partly due to a slowdown in online shopping in the
post-Covid era.
To bring down costs, TVB saw a 6.6 percent drop in the number of
employees since the end of last year, The Standard discloses.
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.
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I N D I A
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AGASTI SAHAKARI: CARE Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Agasti
Sahakari sakhar Karkhana Limited (ASSKL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated June 06, 2022,
placed the rating(s) of ASSKL under the 'issuer non-cooperating'
category as ASSKL 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. ASSKL continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 22, 2023, May 2, 2023, June 13, 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).
ASSKL was incorporated under Maharashtra Co-Operative Societies Act
1960 in a year 1992-93, to undertake sugar and sugar related
production by Mr. Madhukarrao Kashninath Pichad (Chairman) and Mr.
Sitaram Gaikar (Vice Chairman).
AHUJA AUTOMOBILES: CARE Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Ahuja
Automobiles (AA) continue to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 13.30 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 10,
2022, placed the rating(s) of AA under the 'issuer non-cooperating'
category as AA 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. AA continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
June 26, 2023, July 6, 2023, July 16, 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 2008, Ahuja Automobiles (AA) is a partnership entity
based in Amritsar, Punjab. The entity is currently being managed by
Mr Harish Ahuja, Mr Gagan Ahuja and Mrs Madhu Ahuja, sharing profit
and loss in an equal proportion. The entity is operating 3S
facilities (Sales, Service and Spares) of Hyundai Motor India
Limited (HMIL), with an authorized dealership of entire range of
passenger vehicles (PV), since 2008. AA operates through its three
showrooms-cum-workshops in Amritsar and Distt. Tarn Taran, Punjab.
ASSOCIATED APPLIANCES: CRISIL Keeps D Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Associated
Appliances Limited (AAL) continue to be 'CRISIL D/CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 3 CRISIL D (Issuer Not
Cooperating)
Cash Credit 10 CRISIL D (Issuer Not
Cooperating)
Inland/Import 11 CRISIL D (Issuer Not
Letter of Credit Cooperating)
Term Loan 3 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with AAL 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 AAL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AAL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
AAL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
AAL was founded in New Delhi in 1994, by Mr Dev Dutta Sharma and
his family members. The company manufactures and trades in home and
kitchen appliances, including liquefied petroleum gas stoves and
kitchen ventilation hoods.
AVVAS INFOTECH: CRISIL Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Avvas
Infotech Private Limited (AIPL) continue to be 'CRISIL D/CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1.02 CRISIL D (Issuer Not
Cooperating)
Cash Credit 2.79 CRISIL D (Issuer Not
Cooperating)
Cash Credit 1.28 CRISIL D (Issuer Not
Cooperating)
Funded Interest 1.91 CRISIL D (Issuer Not
Term Loan Cooperating)
Funded Interest 1.2 CRISIL D (Issuer Not
Term Loan Cooperating)
Proposed Long Term 3.5 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Working Capital 10 CRISIL D (Issuer Not
Term Loan Cooperating)
Working Capital 11.8 CRISIL D (Issuer Not
Term Loan Cooperating)
CRISIL Ratings has been consistently following up with AIPL 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 AIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
AIPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Incorporated in 2007 and based at Bengaluru, AIPL provides IT, ITES
and HR services. The company is managed by its managing director,
Mr. AVS Sarma.
CHEEMA SPINTEX: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Cheema Spintex Limited
Registered Office:
House No. 176/2, Sector-41A, Chandigarh-160036
Principal Office: (Works)
Village Kauli Majra, Lalru,
Punjab-140506
Insolvency Commencement Date: July 25, 2023
Estimated date of closure of
insolvency resolution process: January 21, 2024 (180 Days)
Court: National Company Law Tribunal, Chandigarh Bench
Insolvency
Professional: Sunil Sethi
44B, Mall Road, Ambala Cantt,
Ambala, Haryana, 133001
Email: ssethi412@gmail.com
Email: cirp.cheemastl@gmail.com
Last date for
submission of claims: August 8, 2023
COFFEE DAY: Insolvency Resolution Process Case Summary
------------------------------------------------------
Debtor: Coffee Day Global Limited
No. 23/2 Coffee day Square Vital
Mallya Road Bangalore 560001
Insolvency Commencement Date: July 20, 2023
Estimated date of closure of
insolvency resolution process: January 21, 2024
Court: National Company Law Tribunal, Bengaluru Bench
Insolvency
Professional: Mr. Shallendra Almera
Ernst & Young LLP
3rd Floor, World mark 1 Aerocity Hospitality,
New Delhi, National Capital Territory of
Delhi-110037
Email: shallendra.ajmera@iney.com
Email: cirp.code@gmail.com
Last date for
submission of claims: August 8, 2023
DEV KIRAN: CARE Lowers Rating on INR26.22cr LT Loan to D
--------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Dev Kiran Paper Mills Private Limited (DKPMPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 26.22 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
and Revised from CARE C; Stable
Long Term/ 9.78 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category and
Revised from CARE C; Stable/
CARE A4
Short Term Bank 4.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE A4
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated August 03,
2022, placed the rating(s) of DKPMPL under the 'issuer
non-cooperating' category as DKPMPL 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. DKPMPL 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,
August 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).
The ratings for DKPMPL have been revised on account of
non-availability of requisite information. The rating revision also
considers frequent instances of delays in debt servicing as
recognized from lender's feedback.
DevKiran Paper Mills Private Limited was incorporated as a private
limited company in 1988 and is promoted by Mr. R. H. Sreenivasa
Setty, Mr. R. H. Ramakrishna Setty and Mr. R. H. Ramanuja Setty.
The company is engaged in manufacturing of kraft paper such as
corrugated media kraft paper, test liner, absorbent kraft (used in
decorative laminates), kraft liner, etc. Its manufacturing facility
is located at Bengaluru, Karnataka.
DUGGAR FIBER: CARE Keeps D Debt Rating in Not Cooperating Category
------------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Duggar
Fiber Private Limited (DFPL) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.30 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 12,
2022, placed the rating(s) of DFPL under the 'issuer
non-cooperating' category as DFPL 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. DFPL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated June 28, 2023, July 8, 2023, July 18, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Delhi based Duggar Fiber Pvt. Ltd. (DFPL) was incorporated in
December 1980 by Mr Radhey Shyam Agrawal and Mr. Rajendra Kr
Agrawal. The company is currently being managed by Mr Purshottam Kr
Gupta, Mr Ashok Chauhan and Mr. Sahdev Sharma. DFPL is engaged in
manufacturing and trading of iron & steel products i.e. mild steel
(MS) ingots. The manufacturing facility of the company is located
at SMA Industrial area in Delhi.
EXCEL VEHICLES: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Excel
Vehicles Private Limited (EVPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 57.00 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 11, 2022,
placed the rating(s) of EVPL under the 'issuer non-cooperating'
category as EVPL 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. EVPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 27, 2023, June 6, 2023, June 16, 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).
Incorporated in the year 2012, EVPL (CIN: U50400MP2012PTC028568)
belongs to Bhopal-based “My Car” Group. EVPL operates in Bhopal
and nearby region as an authorized dealer of Tata Motors Limited
(TML) for its commercial vehicle segment in Madhya Pradesh. The
company deals in all models of TML in commercial vehicle segment.
GEMINI PACK: CARE Keeps D Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Gemini
Pack Tech Private Limited (GPTPL) 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 August 12,
2022, placed the rating(s) of GPTPL under the 'issuer
non-cooperating' category as GPTPL 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. GPTPL continues to be noncooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated June 28, 2023, July 8, 2023,
July 18, 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).
Dehradun, Uttarakhand based Gemini Pack tech Private Limited was
(GPTPL) incorporated in March, 1987. The company is currently being
managed by Mr. Devendra Kumar and Mr. Jitendra Kumar. The company
is engaged in development of residential projects. Also, the
company is engaged in real estate business.
HERO ELECTRIC: CARE Lowers Rating on INR40cr Loan to D
------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Hero Electric Vehicles Private Limited (HEVPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 40.00 CARE D Revised from CARE BB;
Facilities Negative
Long Term/ 250.00 CARE D/CARE D Revised from
Short Term CARE BB; Negative/CARE A4
Bank Facilities
Rationale and key rating drivers
The revision in the ratings of HEVPL is on account of delay in
servicing of its debt obligations. It is reflective of HEVPL's poor
liquidity position resulting from subsidy receivable build up,
continued operating losses and increased reliance on external debt.
The rating action is undertaken as there are delays in debt
servicing as per the interaction with one of HEVPL's lender.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Timely servicing of debt obligations for minimum continuous 3
months
* Significant equity infusion or favourable resolution of subsidy
claims substantially improving the financial risk profile
* Substantial generation of gross cash accruals sufficing any
operations and/or financial obligations.
Analytical approach: Standalone
Detailed description of the key rating drivers:
Key weaknesses
* Delay in Debt Servicing: HEVPL has delayed in servicing its debt
obligations. CARE Ratings Limited (CARE Ratings) has taken
cognizance of the same and accordingly has taken the rating action.
This also follows the poor liquidity situation prevailing in the
company on account of continued operating losses and elongated
receivable position.
* Dependence on external borrowings due to sizeable pending FAME
subsidy claims: Post debarment from FAME scheme, MHI issued notices
to HEVPL for the recovery of amounts wrongly claimed amounting to
INR133 crore as well as barred HEVPL from receiving any future
payments from the scheme resulting in a build-up of subsidy claims
from the Government of around INR516 crore as on April 30, 2023,
increased from INR62 crore as on March 31, 2022, impacting the
already stretched liquidity profile of the company. In FY23, the
promoters infused equity amounting to INR50 crore as on April 30,
2023. As per the signed term sheet with its existing investors Oaks
& GII were to infuse around INR160 crore by June 2023, out of which
INR44.5 crore has been received as on July 31, 2023. There was
lower than expected infusion of equity which has further stretched
HEVPL's already stretched liquidity position.
* Continued operating losses: Despite a gross margin of 18%-20%,
HEVPL is yet to report operating profit due to the high component
costs (50% of raw material cost). As per the latest financial
results available, the company's PBILDT losses expanded from
INR27.37 crore in FY22 to INR81.85 crore in 9MFY23 (Un-Audited).
Key strengths
* Established market position in the e2W industry in India: HEVPL's
early-mover advantage, pan-India distribution network, promoter
family expertise and market reputation make it one of India's
oldest e2W businesses with a network of 500 dealers and 250
sub-dealers, ie, 750 touch points, across 25 states of India.
Furthermore, with the current investment, the company's Ludhiana,
Punjab, manufacturing facility's 75,000-unit capacity would rise to
200,000 units. HEVPL sold 53,556 units in FY21, 101,204 in FY22,
and 90,000 through January'23; its market share as of March'23
stood at around 13%.
Liquidity: Poor
With the continued operating losses and its elongated receivable
position (FAME subsidy claims), the liquidity profile of the
company is poor. This has followed into delay in repayment of its
debt obligations as well. Furthermore, HEVPL's free cash and cash
equivalents stood at around INR3.9 crore as on July 31, 2023 (total
cash and cash equivalents was INR21.1 crore) while
repayments due in FY24 are around INR56 crore for term debt.
Furthermore, in FY23, the promoters have infused around INR50 crore
as on April 30, 2023. As per the signed term sheet with its
existing investors Oaks & GII were to infuse around INR160 crore by
June 2023, out of which only INR44.5 crore has been received as on
July 31, 2023. Sustainable timely servicing of its debt obligations
would be a key monitorable.
HEVPL is a part of the Hero Eco group (comprising HEVPL, Hero
Exports [rated 'CARE A-; Negative/CARE A2+']), and Hero Ecotech Ltd
(rated 'CARE A-; Negative/CARE A2+'), held by Vijay Munjal, Naveen
Munjal, and Gaurav Munjal. The company began developing EVs more
than a decade ago and rolled out its first electric scooter in
India in 2007. Its target market is the low- and city-speed
segments. It has over 300 employees in India and a manufacturing
unit in Ludhiana, with an installed capacity of 70,000 units per
annum.
HOTEL RATHI: CRISIL Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Hotel Rathi
Residency (HRR) continues to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 6 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with HRR 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 HRR, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on HRR
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
HRR continues to be 'CRISIL D Issuer Not Cooperating'.
Set up in 2010 as a partnership firm by Mr. Vijay Sheena Shetty and
Mr. Anil Savale, HRR runs a hotel in Chikhali, Pune, which offers
lodging services, multi-cuisine restaurant, and bar. The operations
of the hotel started in fiscal 2016.
INESH ACCERRO: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Inesh Accerro Limited
Unit No. 404, Main Frame, Royal Palm Estate,
Near Aarey Colony, Goregaon (East),
Mumbai, Mumbai City MH 400065 India
Insolvency Commencement Date: July 25, 2023
Estimated date of closure of
insolvency resolution process: January 21, 2024
Court: National Company Law Tribunal, Mumbai Bench
Insolvency
Professional: Neelima Anil Bhate
401 Citi Centre,
opp. Ayurved Rasashala, Karve Road, Pune – 411004
Email: neelima_bhate@yahoo.com
Mobile: 9822076964
Email: irpinesh@gmail.com
Mobile: 9823 29 2528
Last date for
submission of claims: August 8, 2023
INTERJEWEL DESIGNS: CARE Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Interjewel
Designs (ID) continue to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ 36.50 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 25, 2022,
placed the rating(s) of ID under the 'issuer non-cooperating'
category as ID 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. ID continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
June 10, 2023, June 20, 2023, June 30, 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.
M/s Interjewel Designs (ID) was established as a partnership firm
in September 2009 by Mr. Rupen Kothari and Mr. Shrenik Choksi and
is engaged in the business of manufacturing and export of studded
gold, silver and platinum jewellery. The firm is based within
SEEPZ, Mumbai.
JAY ACE TECHNOLOGIES: Insolvency Resolution Process Case Summary
----------------------------------------------------------------
Debtor: Jay Ace Technologies Limited
GI-48, G.T. Karnal Road, Industrial Area 110033
Insolvency Commencement Date: July 31, 2023
Estimated date of closure of
insolvency resolution process: January 27, 2024
Court: National Company Law Tribunal, New Delhi Bench-III
Insolvency
Professional: Mohd Nazim Khan
MNK House, 9A/9-10, Basement,
East Patel Nagar, New Delhi-110008
Email: nazim@mnkassociates.com
Email: cirp.jayaace@gmail.com
Last date for
submission of claims: August 14, 2023
JET AIRWAYS: CoC Agrees to a 30-day Extension But Differs on Mode
-----------------------------------------------------------------
The Economic Times reports that Jet Airways' Committee of Creditors
on Aug. 21 informed the National Company Law Appellate Tribunal
that they were ready to grant a month's extension for payment of
INR350 crore but differed on the terms of payment suggested by the
Jalan-Kalrock Consortium.
"How do we reach the end of the long tunnel of (recovering)
INR7,800 crore if we are struggling for INR350 crore," the senior
counsel representing Jet CoC, led by the State Bank of India, told
the tribunal.
About Jet Airways
Based in Mumbai, India, Jet Airways (India) Limited was one of
India's top airlines founded by Naresh Goyal. It provided
passenger and cargo air transportation services as well aircraft
leasing services. It operated flights to 66 destinations in India
and international countries.
Jet Airways on April 17, 2019, halted all flight operations after
its lenders rejected its plea for emergency funds.
On June 20, 2019, the National Company Law Tribunal (NCLT), Mumbai
Bench, accepted an insolvency petition against Jet Airways filed by
its creditors as they attempt to recover some of their dues.
Ashish Chhawchharia of Grant Thornton India has been named as the
resolution professional in the case. Law firm Cyril Amarchand
Mangaldas represented the interests of the lenders' consortium,
according to a Reuters report.
Creditors have filed claims worth INR30,907 crore, according to
Financial Express. The RP has so far admitted claims worth over
INR14,000 crore.
In October 2020, the airline's Committee of Creditors (CoC)
approved the revival plan submitted by the consortium of
Dubai-based Murari Lal Jalan and the UK's Kalrock Capital.
In 2021, the NCLT approved the Jalan-Kalrock consortium's
resolution plan for the troubled carrier.
KADALAI MITTAI: CARE Lowers Rating on INR13cr Loan to D
-------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Kadalai Mittai Private Limited (KMPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 0.97 CARE D Revised from CARE BB;
Facilities Stable
Short Term Bank 13.00 CARE D Revised from CARE A4
Facilities
Rationale and key rating drivers
The revision in the ratings assigned to the bank facilities of KMPL
factors in delays in servicing of debt obligations. The ratings
continue to be constrained by its relatively small scale of
operations, highly leveraged capital structure, fragmented nature
of industry with low entry barriers and poor liquidity.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Satisfactory track record of timely servicing of debt
obligations
Analytical approach: Standalone
Detailed description of the key rating drivers:
Key weaknesses
* On-going delays in debt servicing: The company has been delaying
in servicing of its debt obligations. There were also penal
interests levied in the GECL term loan account.
* Small Scale of operations: KMPL was formed in September 2017 to
handle the trading division of its parent entity Agrocrops India
Limited (ACI) both in domestic and overseas market. KMPL purchases
peanuts in bulk quantity from various domestic dealers and farmers,
segregates and sell good quality peanuts to ACI where they are
further processed and exported. KMPL also purchases the low-grade
peanuts and peanut shells from ACI cleans them and sells to the
local outlets and cottage industries. KMPL manufactures cold
pressed groundnut nut oil under the brand name of 'Yes oil' which
is currently sold in ecommerce platforms like amazon, flipkart and
also trades sesame seeds and other agro products in small
quantities.
* Leveraged capital structure and low coverage indicators: The
capital structure of KMPL is highly leveraged due to higher
utilisation of working capital borrowings. Company's overall
gearing stood at 3.39x as on March 31, 2022, as against 3.48x on
March 31, 2021. The interest coverage ratio stood at 2.61x for the
year ended March 31, 2022, against 1.54x for the year ended March
31, 2021. As on Jun 30, 2023, GECL loan's outstanding position
stood at INR0.57 Cr, with principal repayments of INR1.02 Cr for
the sanctioned limit of INR1.60 Cr.
* Fragmented nature of industry with low entry barriers: The
industry is highly fragmented with large number of organised and
unorganised players with low entry barriers. Also, the price
of raw materials is highly volatile in nature due to vagaries of
nature such as monsoon, cultivation process, etc. and government
intervention such as MSP and demand supply scenario.
Liquidity: Poor
The liquidity profile of the company is poor with low cash accruals
and high working capital utilization. On account of delayed
realisation of foreign bill collection and full limit utilisation
of overdraft facility, there is a mismatch in cashflows resulting
delay in servicing term debt obligations. The company has availed
packing credit facility (PC/ PCFC/ FDB/ FBE) to the tune of INR 12
Cr and secured overdraft facility (domestic) of INR 1 Cr.
Kadalai Mittai Private Limited (KMPL) was incorporated in September
2017 as a trading company. Mr. Saravanan Lokasundaram, promoter of
KMPL, has decades of experience in peanuts grading, processing and
marketing. Agrocrops India Limited [ACI] hivedoff its peanuts
trading division to KMPL for handling its peanuts trading business.
KMPL also trades Sesame seeds and other agro products on a small
scale. In FY20, KMPL became a wholly owned subsidiary of ACI.
KARAMHANS FOODS: CARE Lowers Rating on INR10cr LT Loan to C
-----------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Karamhans Foods Private Limited (KFPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B-; Stable
Short Term Bank 10.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated August 9, 2022,
placed the rating(s) of KFPL under the 'issuer non-cooperating'
category as KFPL 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. KFPL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
June 25, 2023, July 5, 2023, July 15, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings have been revised on account of non-availability of
requisite information. The revision further considers continued
losses as well as leveraged capital structure marked by high
overall debt vis-à-vis a deteriorating net worth base in FY22.
Karamhans Foods Private Limited (KFPL), based in Samba (Jammu &
Kashmir), was incorporated in May 1995 as a private limited
company. However, the operations started in September 2002. The
company is currently being managed by Mr. Surinder Nath Jain, Mrs.
Susheela Jain, Mr. Sandeep Jain and Mr. Sujiv Jain. KFPL is engaged
in processing of dry fruits at its facility located in Samba, Jammu
& Kashmir. The company majorly deals in walnuts, almonds, raisins
and dry morels.
KARAN AUTOMOTIVES: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Karan Automotives Private Limited
Registered Office:
H.No.7, GroundFloor, Vill. Tehkhand Mavi Mohalla,
1E, Campa Cola Factory New Delhi-110020
Principal Office:
Plot No. 17-C,
Opposite Whirpool India Ltd. Industrial Area, NIT
Fadirabad-121001, Haryana
Insolvency Commencement Date: July 31, 2023
Estimated date of closure of
insolvency resolution process: January 27, 2024
Court: National Company Law Tribunal, New Delhi Bench
Insolvency
Professional: Shailesh Dayal
2/6A, LGF, Jungpura-A,
New Delhi-110014
Email: shaileshdayal@gmail.com
Email: cirp.karanautomatives@gmail.com
Last date for
submission of claims: August 14, 2023
KUKRU WIND: Ind-Ra Affirms BB+ Term Loan Rating
-----------------------------------------------
India Ratings and Research (Ind-Ra) has revised the Outlook on
Kukru Wind Power Private Limited's (KWPPL) term loan to Positive
from Negative while affirming the ratings at 'IND BB+'.
The detailed rating actions are:
-- *INR1,992.7 bil. (reduced from INR2,099.44 bil.) Term loan due
on September 15, 2037 Outlook revised to Positive from
Negative; rating affirmed with IND BB+/Positive rating; and
-- INR100 mil. Working capital# is withdrawn.
*Outstanding as of July 15, 2023
#Withdrawn basis the no-dues certificate received from the lender
Analytical Approach: Ind-Ra continues to analyze the project at a
standalone level, while rating the senior debt. In addition to
plain equity, the shareholders have infused funds worth INR465.4
million and INR402.21 million in the form of compulsorily
convertible debentures and unsecured loans, respectively. According
to the terms of the shareholder debt shared by the management,
these instruments do not have any rights to call an event of
default and are completely subordinate to the rated senior debt.
The loan agreements also delineate the subservient nature of the
shareholder debt and treat this as an equity-like instrument.
Ind-Ra has excluded the servicing of the sponsor's unsecured debt
obligations while arriving at the ratings. The inclusion of these
funds into the debt category could impact the rating.
The Outlook revision to Positive reflects an improvement in KWPPL's
receivables position post the implementation of the Late Payment
Surcharge Rules, 2022 (LPS rules) causing regular receipts of the
bills raised. This has resulted in the replenishment of KWPPL's
debt service reserve (DSR) to cover six months of annual debt
obligations. The rating is constrained by the company's moderate
coverage ratios at the existing generation levels and the inherent
generation risks associated with wind projects.
Key Rating Drivers
Improved Cash Flow Visibility: KWPPL is exposed to a single
counterparty credit risk, associated with the sale of electricity
only to Madhya Pradesh Power Management Company Limited (MPPMCL).
While the gap between the invoiced date and the payment received
date had widened to around 14 months at FYE21, the project since
FY23 has started receiving regular payments within 60 days on
account of the LPS scheme. KWPPL received close to INR129 million
in the form of monthly instalments during August 2022-July 2023
from the discom, resulting into a better cash flow position.
The frequency of payments and regular revenue realization however
shall remain a key monitorable; any increase in the receivable days
or irregularities in payments from the counterparty could have a
negative impact on the rating. However, any sustained improvement
in MPPMCL's credit profile would have a favorable impact on the
credit profile of KWPPL.
Liquidity Indicator – Adequate: As on 3 July 2023, the project
has available liquidity (including both free cash, fixed deposits
and debt service reserve) of INR233.3 million. This was equivalent
to about eight months of debt servicing requirements, including a
DSR equivalent to six months of debt obligations (in the form of
fixed deposit), as per stipulation. The project's cash and bank
balances have improved over the years (end-FY23 (provisional):
INR52.4 million; end-FY22: INR7.1 million), owing to its dues being
cleared by MPPMCL. Furthermore, Ind-Ra estimates the average debt
service coverage ratio (DSCR) of KWPPL to be above 1.10x, with the
ability to withstand minor levels of stresses in generation,
expenses and interest rates. Ind-Ra has taken significant comfort
from the liquidity of the project while arriving at the rating. Any
significant deterioration in the liquidity, coupled with delays in
receiving payments from MPPMCL, would result in a negative rating
action.
Subdued Power Generation: The plant achieved an average net plant
load factor (PLF) of 18.6% during FY23 (FY22: 18.9%), lower than
P90 PLF of 21.23%, while the average grid availability has been
above 98% since commissioning. The project's machine availability
fell to an average of 95% during FY23 (FY22: 99%), due to reasons
including transformer failure which has been replaced subsequently.
Ind-Ra will monitor any continuing trend in the project's power
generation and realized revenues. Ind-Ra has factored the existing
generation levels as part of its base case; any significant
underperformance due to machine availability issues could lead to a
negative rating action.
Modest Debt Structure: The term loan is repayable over 195
structured monthly instalments, ending on 15 September 2037. The
project has standard project finance features including a cash flow
waterfall mechanism and restricted payment covenants. The debt
terms also stipulate a DSR equivalent to two quarters' debt
servicing obligations which has been replenished now.
Moderate Operating Risks: Given KWPPL is a wind power project, it
is exposed to the revenue risks arising from volatility in wind
availability. Ind-Ra considers the wind turbine technology employed
by KWPPL to be standard and proven. Gamesa Renewable Private
Limited is the wind turbine generator supply, erection and
commissioning as well as O&M contractor for the project. The
company employs Gamesa turbine generators with a hub height of 104m
and rotor diameter of 97m. Although the existing O&M contract is
valid for 10 years till FY26, the management has represented that
they are de-scoping certain services of Gamesa Renewable and
appointing Renom Energy Services Private Limited as the contractor.
The agency has considered operating costs in line with the proposed
contractual terms, any significant deviation from the same will be
a key monitorable for the rating.
Long-term Offtake Arrangements: KWPPL sells power to MPPMCL under
25-year power purchase agreements signed in 2015 for an aggregate
capacity of 46MW, providing revenue visibility to the company. The
agreements specify a tariff of INR5.92/kWh as per MPERC's tariff
order for the control period April 2013-March 2016, provided the
plants were commissioned on or before 31 March 2016. The project
received the commissioning certificate after 31 March 2016, and
hence, as per the PPA, the new tariff of INR4.78/kWh specified by
the tariff order for the subsequent control period became
applicable. However, KWPPL believes it is eligible for a higher
tariff of INR5.92/kWh and has disputed the same with state
authorities. The resolution of the matter is pending. Ind-Ra has
carried out its analysis, considering a tariff of INR4.78/kWh
throughout the debt tenor. The agency will continue to monitor the
situation and assess the impact of the eventual resolution on the
credit quality of the project.
Modest Sponsor Profile: Bengaluru-based Atria group is headed by CS
Sunder Raju and K Nagaraju, who belong to the second generation of
the promoters' family. The group has presence in power, education,
hotels and construction/real estate. Atria Brindavan Power Pvt.
Ltd., the holding company of the solar and wind assets, had
operational renewable projects (wind, solar ground mounted and
solar rooftop) assets of 536MW as of June 30, 2023.
Rating Sensitivities
Negative: Future developments that may, individually or
collectively, lead to a rating downgrade are:
-- a depletion of DSR to less than one quarter
-- deterioration in the counterparty's credit quality
-- the absence of the timely sponsor/group support in case of any
shortfall
-- operational and financial performance lower than Ind-Ra's base
case estimates with a forward-looking average DSCR below 1.0x
Positive: Future developments that may, individually or
collectively, lead to a rating downgrade are:
-- a sustained improvement in the operational performance leading
to forward-looking average DSCR above 1.1x
-- receipt of new bills before the default trigger date as per LPS
Scheme and receipt of EMI payments as per schedule
Company Profile
KWPPL owns and operates wind power plants of 50MW in the Betul
district of Madhya Pradesh. The plants were commissioned in April
2016.
LIBRA AUTO: CARE Keeps D Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Libra Auto
Car Company Limited (LACL) 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 August 10,
2022, placed the rating(s) of LACL under the 'issuer
non-cooperating' category as LACL 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. LACL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated June 26, 2023, July 6, 2023, July 16, 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).
LACL was incorporated in 2005 and promoted by Mr Pavit Pal Singh,
Mr Kesar Singh and Mr Gurinderjit Singh. LACL is an authorized
dealer of entire range of passenger vehicles (PV) of Maruti Suzuki
India Limited (MSIL). LACL operates a 3S facility (Sales, Spares,
Service) coupled with sale and purchase of pre-owned cars (True
Value) and has its showroom located on Jalandhar Bypass, Ludhiana,
Punjab. The company also has one service station in Sanewal,
Ludhiana, Punjab. LACL has three group concerns, namely, 'Libra
Auto &General Finance Limited', 'Libra Automobiles Private Limited'
and 'Patiala Carrier'. 'Libra Auto & General Finance Limited' is
engaged in auto and general finance business since 1994, whereas
both the other group concerns are engaged in transport business
since 1994.
MAAJAGDAMBE PAPER: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Maajagdambe
Paper Mills Private Limited (MPMPL) continue to be 'CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 1 CRISIL D (Issuer Not
Cooperating)
Term Loan 4 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with MPMPL 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 MPMPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MPMPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MPMPL continues to be 'CRISIL D Issuer Not Cooperating'.
Incorporated in May 2016, Maajagdambe Paper Mills Pvt Ltd (MPMPL)
is setting up manufacturing unit for kraft paper and writing paper.
The factory is situated at Mahuli, Bihar.
MADRAS SILKS: Ind-Ra Cuts LongTerm Issuer Rating to BB+
-------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded The Madras Silks
India Private Limited's (TMSIPL) Long-Term Issuer Rating to 'IND
BB+' from 'IND BBB-' with a Stable Outlook and has simultaneously
withdrawn it.
The instrument-wise rating actions are:
-- INR3.320 bil. (reduced from INR3.520 bil.) Fund-based working
capital limit* downgraded and withdrawn; and
-- INR733 mil. (reduced from INR1.155 bil.) Term loan# due on
September 3, 2027 downgraded and withdrawn.
* Downgraded to 'IND BB+'/Stable/'IND A4+' before being withdrawn
#Downgraded to 'IND BB+'/Stable before being withdrawn
The downgrade reflects the sharp decrease in TMSIPL's EBITDA margin
in FY23 and the projected debt service coverage ratio for FY24
being lower than unity.
Ind-Ra is no longer required to maintain the ratings, as the agency
has received a no-objection certificate from the lenders. This is
consistent with Ind-Ra's Policy on Withdrawal of Ratings. Ind-Ra
will no longer provide analytical and rating coverage for TMSIPL.
Key Rating Drivers
Modest EBITDA Margins: TMSIPL's EBITDA margin declined to 6% (FY22:
9%) in FY23, driven by the lower margins in the jewelry segment of
6% (9%) owing to sales at competitive rates. The return on capital
employed was low at 6.5% in FY23 (FY22: 5.7%) since the company
carries out its business under asset heavy model, and hence
requires high capital. Ind-Ra expects ROCE to rise in FY24, on
account of consistent debt repayments. During FY23, the company
changed its procurement strategy for textiles. While the company
procured textiles directly from suppliers at a lower cost than that
from its earlier supplier The Chennai Silks, it did not help its
margins much due to volatile raw material prices. Ind-Ra expects
the EBITDA margin to slightly improve to 7%-9% over the medium
term, as the benefit of the lower procurement cost and benefits
arising from the improvement in scale, supported by a recovery in
sales per square feet of four showrooms, will be offset by passing
on benefits to customers in the hyper competitive retail market.
Liquidity Indicator - Stretched: The company has high debt
repayment obligations of INR520 million in FY24 and INR255 million
in FY25, against the free cash and cash equivalents of just
INR68.45 million in FY23 (FY22: INR57.84 million). As a result, its
debt service coverage ratio is projected to be below 1x in FY24.
This is concerning for the company in view of its debt repayments.
TMSIPL's working capital cycle remained elongated despite improving
in FY23 to 190 days (FY22: 241 days). It fully utilized its
fund-based limits over the 12 months ended July 2023. As of FY23,
the net cash conversion cycle to 190 days in FY23 (FY22: 241 days),
after recovery from the pandemic. Both payable and inventory days
decreased to 25 in FY23 (FY22: 35) and 213 (274), respectively. The
receivable days remain negligible since TMSIPL operates on a
cash-and-carry model.
Modest Credit Metrics; Improvement Likely in FY24: The total debt
reduced to INR4,865 million in FY23 (FY22: INR5,330 million). Out
of which, INR630 million was interest-free unsecured loans from
promoters. In FY23, the interest coverage slightly improved to
1.71x (FY22: 1.7x) on account of lower interest expenses of INR348
million (INR358 million). Also, the net leverage remained high at
8.07x in FY23 (FY22: 8.07x) because the benefit of debt repayments
was offset by a decline in EBITDA to INR594 million (INR614
million). Ind-Ra believes that the overall credit metrics of the
company to improve over the medium term, considering the likelihood
of higher operating EBITDA with a revival in sales and further debt
repayment along with low debt-funded capex.
Strong Performance in FY23; Likely to Strengthen in FY24: TMSIPL's
revenue grew over 30% yoy in FY23 to INR9,718 million on account of
increased footfalls post COVID-19 and higher gold prices. The
company has a medium scale of operations. As per the 1QFY24
financials, the company achieved revenue of over INR2,600 million,
and therefore it is likely to register healthy revenue in FY24.
This will be owing to a healthy increase in footfalls, considering
the gradual recovery in operations, backed by the pent-up demand
from weddings and festivals season, increasing consumer confidence
and a rise in discretionary spending. There has been no addition to
the stores since FY23 and also, the management is not planning for
any store expansion over the medium term.
Established Brand; Experienced Promoters: TMSIPL has strong brand
recall in Tamil Nadu, backed by over 50 years of experience of the
promoter in the textile and jewelry retailing along with more than
two decades of the company's operations. The company is operating
with four showrooms on a total area of 4,80,040 sq ft. The textile
division is operating under the brand name of The Chennai Silks and
the jewelry division is operating under the brand name of Sree
Kumaran Thanga Maligai. The company generated around 55% of its
FY23 revenue from the jewelry segment (FY22: 60%, FY21: 63%) and
45% revenue from the textile segment (40%, 37%), based on
provisional financials. Furthermore, it owned all the showrooms and
whose market value are higher than its book value.
Industry Risks: High competition in the retail sector along with
its susceptibility to economic cycles impacts the ratings.
Furthermore, the company is prone to the general consumption risk
associated with the retail industry. Any cyclical downturn and fall
in purchasing power could hurt the growth prospects.
Company Profile
TMSIPL is engaged in the retailing of textiles and jewelry through
four retail showrooms in Tamil Nadu, one each in Chennai,
Velachery, Tiruvallur and Chromepet. K Manickam is the promoter of
the company with effect from 2012 post the demerger of the Chennai
Silks Group.
MAGNUM STEELS: CARE Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Magnum
Steels Limited (MSL) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 20.00 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 12,
2022, placed the rating(s) of MSL under the 'issuer
non-cooperating' category as MSL 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. MSL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated June 28, 2023, July 8, 2023, July 18, 2023 and
August 11, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings have been revised on account of non-availability of
requisite information. Further it also considers delays in debt
servicing as recognized from publicly available information i.e.,
auditor's comments in FY22 audit report available from ROC
filings.
Delhi-based MSL is a closely held public limited company and was
incorporated in January, 1991. MSL is currently promoted by Mr.
Rajat Jindal, Mr. Shashi Prabha Jindal, Mr. Ishwar Chand Jindal,
Mr. Chander Sain Yadav and Mr. Amar Singh Rathor. MSL is engaged
into manufacturing of TMT bars, spring steel flats, steel castings
DRI Sponge etc. The products manufactured by MSL finds application
in construction industry, automobile industry and other heavy
engineering industries.
MALEBENNUR FOODS: CRISIL Keeps B Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Malebennur
Foods Private Limited (MFPL) continue to be 'CRISIL B/Stable Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3 CRISIL B/Stable (Issuer Not
Cooperating)
Cash Credit 2.5 CRISIL B/Stable (Issuer Not
Cooperating)
Long Term Loan 3 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with MFPL 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 MFPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MFPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MFPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Set up in 2013, MFPL is engaged in milling and processing of paddy
into rice, rice bran, broken rice and husk. Its rice mill is
located in Malebennur (Karnataka). The company is promoted by Mr.
Syed Hussaian Azghar.
NEUEON TOWERS: CARE Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Neueon
Towers Limited (NTL) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 1,420.24 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 200.02 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE had, vide its press release dated December 27, 2017, placed
the rating(s) of NTL under the 'issuer non-cooperating' category as
NTL had failed to provide information for monitoring of the rating.
NTL continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and an email
dated July 4, 2023, to July 26, 2023.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Neueon Towers Limited (erstwhile Sujana Towers Limited) was
established in April 2006 after demerger of Towers Division of
Splendid Metal Products Limited (erstwhile Sujana Metal Products
Limited), pursuant to the scheme of arrangement and amalgamation as
approved by the High Court Andhra Pradesh. Neueon Towers Limited
(NTL) is engaged in manufacturing of galvanized steel towers used
in the power transmission and telecom tower sector. NTL was
initially a part of the Sujana group, promoted by Y.S. Chowdhary
who has more than 23 years of experience in steel products
manufacturing and trading. The group has diversified business
activity with presence in construction & structural steel, power
transmission & telecom towers and allied services, energy
(generation, distribution, green energy consulting and manufacture
of energy saving LEDs), basic and urban infrastructure development,
precision engineering components, domestic appliances and
international trade.
PANCHANAN COLD: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Panchanan
Cold Storage Private Limited (PCSPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.66 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 12, 2022,
placed the rating(s) of PCSPL under the 'issuer non-cooperating'
category as PCSPL 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. PCSPL continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 28, 2023, June 7, 2023, June 17, 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).
Panchanan Cold Storage Private Ltd. (PCSPL) was incorporated on
January 16, 1989 by Jaiswal family of Hooghly, West Bengal to
provide cold storage services with the facility being located at
village: Olipur, Hooghly, and West Bengal. However, the earlier
promoters were unable to run the management efficiently and the
current promoters Shri Ayan Samanta, Shri Sayan Samanta and Shri
Sibaram Samanta of Hooghly, West Bengal took over from the earlier
management in November, 2014. PCPL is currently engaged in the
business of providing cold storage facility at the same location
primarily for potatoes and is operating with a storage capacity of
255,000 quintals per annum. Besides providing cold storage facility
the unit also works as a mediator between the farmers and marketers
of potato, to facilitate sale of potatoes stored and it also
provides interest free advances to farmers for farming purposes of
potato against potato stored. Further, PCPL commenced trading of
potatoes from FY14 onwards. Shri Sibaram Samanta (MD) looks after
the day to day operations of the unit with the help of other
directors and a team of expert professionals who are having
relevant experience in the similar line of business.
POOJA SPONGE: CRISIL Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Pooja Sponge
Private Limited (PSPL) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 9 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 4 CRISIL D (Issuer Not
Cooperating)
Term Loan 7 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with PSPL 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 PSPL , which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PSPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
PSPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
PSPL was incorporated in 2002 in Rourkela and was initially
promoted by the Odisha-based Gupta family. The company was acquired
in 2006 by the Agarwal family. PSPL manufactures sponge iron at its
facility in Rourkela (kiln capacity of 200 tonne per day) and also
trades in steel flat and long products. Operations are managed by
director, Mr. Kavit Agarwal.
RISHABH BUILDWELL: CARE Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Rishabh
Buildwell Private Limited (RBPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 125.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. has been seeking information from RBPL to monitor
the ratings vide various e-mail communications dated August 3,
2023, July 31, 2023, July 18, 2023 and numerous phone calls.
However, despite repeated requests, the company has not provided
the requisite information for monitoring the ratings.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating. The ratings of Rishabh Buildwell Private Limited's bank
facilities will now be denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating).
The rating has been reaffirmed on account of non-availability of
requisite information due to non-cooperation by Rishabh Buildwell
Private Limited with CARE Ratings Ltd.'s efforts to undertake a
review of the rating outstanding. CARE Ratings Ltd. views
information availability risk as a key factor in its assessment of
credit risk. The reaffirmation in ratings assigned to the bank
facilities of RBPL factors in the ongoing delays in servicing of
debt obligations for the term loan.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Improvement in liquidity position as reflected by the timely
repayment of debt obligations.
Analytical approach: Standalone
Outlook: NA
Detailed description of the key rating drivers:
Key weaknesses
* Delay in servicing of debt obligations: There were on-going
delays in servicing of debt obligation for term loan availed by the
company from PNBHFL due to slow project construction and mismatch
between project receipts vis a vis the high debt repayment
obligation (~Rs.6.5 crore per month). However, with the investment
by T & T group construction of the project resumed in December 2021
and company has repaid the July 2022 instalment in full, albeit
with delay.
* Subdued industry scenario: The company is exposed to the
cyclicality associated with the real estate sector which has direct
linkage with the general macroeconomic scenario, interest rates and
level of disposable income available with individuals. In case of
real estate companies, the profitability is highly dependent on
property markets. A high interest rate scenario could further
discourage the consumers from borrowing to finance the real estate
purchases and may depress the real estate market.
Key strengths
* Improvement in the project development with investment by T & T
Group: T & T group is a real estate developer and has developed
many real estate projects in the past. T & T group is investing in
Hindon Green Valley project and also managing overall project
construction and sale of flats. T & T group has already invested
around INR40 crore in this project in the form of unsecured loans.
Due to tight liquidity and slow collection, the erstwhile promoters
of the company were not able to complete the project. However,
during Q3FY22, T&T group has taken over the project. The project
has seen healthy sales and collection momentum post takeover with
average monthly sale of INR13.50 crore during the last 6 months
ended April 30, 2022 and collection of INR8.43 crore during the
last 6 months ended July 31, 2022. In phase 1 of the project there
are three towers out of which two towers are completed upto 24th
floor and one tower constructed till 16th floors. Company will
apply for OC for the project by end of December 2022. As on March
2022, area of 5.16 lsq was sold
by the company out of total saleable area of 9.12 lsf.
Liquidity: Poor
The liquidity of the company is poor. Due to slow project
construction and mismatch between project receipts vis a vis the
high debt repayment obligation, liquidity of the company remains
constrained. There were on-going delays in servicing of debt
obligation for Term loan availed by the company from PNBHFL.
However, with the investment by T & T group construction of the
project resumed in December 2021 and company has repaid the July
2022 instalment in full, although the same is paid with delay.
Incorporated in 2005, Rishabh Buildwell Pvt. Ltd. (RBPL) is engaged
in development of real estate projects, mainly in NCR region. Till
March 31, 2018, the company has already executed commercial and
residential projects over an area of more than 20 lacs square feet
(lsf). RBPL belongs to Rishabh group, having presence in various
segments including hospitality, education, solar, Television
channel and real estate. Presently RBPL is engaged in development
of one residential project "Hindon Green Valley Project" in
consortium with T & T group. T & T group is a real estate developer
and has developed many real estate projects in the past. T & T
group is investing in Hindon Green Valley project and also managing
overall project construction and sale of flats. T & T group has
already invested around INR40 crore in this project in the form of
unsecured loans. With financial assistance of the T & T group
construction of Hindon Green Valley project resumed in December
2021. As on date the project is in advance state of completion with
more than 75% of the total project cost has already incurred.
S.K. RICE: CRISIL Keeps D Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of S.K. Rice
Industries (SKRI) continues to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7.5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SKRI 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 SKRI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SKRI
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SKRI continues to be 'CRISIL D Issuer Not Cooperating'.
Set up in 2009, Devenagere (Karnataka) based SKRI is a partnership
firm engaged in milling and processing of paddy into rice, rice
bran and husk. It has an installed paddy milling capacity of 3
tonnes per hour and operates in two shifts. The firm is promoted by
Mrs. Syyed Rehana along with her family members, Mr. Syyed Altaf
Ahmed and Mr.Syyed Israr Ahmed.
S.S MEDICAL: CRISIL Keeps C Debt Rating in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of S.S Medical
Systems (India) Private Limited (SSMSIPL) continue to be 'CRISIL
C/CRISIL A4 Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 2 CRISIL A4 (Issuer Not
Cooperating)
Cash Credit 6 CRISIL C (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SSMSIPL 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 SSMSIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
SSMSIPL is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of SSMSIPL continues to be 'CRISIL C/CRISIL A4 Issuer
Not Cooperating'.
Established in 1975, SSMSIPL manufactures and assembles medical
equipment used in hospitals, pathologies, laboratories, at its unit
at Bhimtal in Nainital.
S.S.S. RICE: CARE Lowers Rating on INR16.15cr LT Loan to D
----------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
S.S.S. Rice Mill Private Limited (SRMPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 16.15 CARE D; ISSUER NOT COOPERATING
Facilities 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 June 7, 2023,
placed the rating(s) of SRMPL under the 'issuer non-cooperating'
category as SRMPL 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. SRMPL continues to
be noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
August 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).
The ratings assigned to the bank facilities of SRMPL have been
revised on account of delays in debt servicing as recognized from
publicly available information.
Incorporated in May 2007, S.S.S. Rice Mill Private Limited (SRMPL)
is engaged in rice milling. The Plant is located at Raidighi, West
Bengal with an installed capacity of 75000 MTPA. The company is
promoted by Mr. Nimai Chand Pukait and Mrs. Arati Purkait. The
company procures paddy from local farmers at Raidighi and after
processing, the final produce is sold to the dealers and
wholesalers in West Bengal. The company is also involved in job
work for Government departments namely WBECSC Limited, BENFED, and
Food and Supply Department of West Bengal. Further, the company has
not availed any moratorium from its lender.
SALASAR INDUSTRIES: CRISIL Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Shree Salasar
Industries Private Limited (SSIPL) continues to be 'CRISIL D/CRISIL
D Issuer Not Cooperating'.
CRISIL Ratings has withdrawn its ratings on INR1.6 crore of TL
facility, INR5 crore of Cash Credit facility and INR0.17 crore of
Proposed Short Term Bank Loan Facility on the request of the
company and receipt of a no objection certificate from its bank.
The rating action is in line with CRISIL Ratings' policy on
withdrawal of its ratings on bank loans.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL D/Issuer Not
Cooperating (Withdrawn)
Proposed Short 0.17 CRISIL D/Issuer Not
Term Bank Cooperating (Withdrawn)
Loan Facility
Term Loan 11 CRISIL D (Issuer Not
Cooperating)
Term Loan 1.6 CRISIL D/Issuer Not
Cooperating (Withdrawn)
CRISIL Ratings has been consistently following up with SSIPL for
obtaining information through letters and emails dated November 24,
2022 and January 16, 2023, among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SSIPL. This restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SSIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
SSIPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
SSIPL, incorporated in September 2013, manufactures ferrosilicon.
The manufacturing facility at Naharlagun, Arunachal Pradesh, has a
capacity of 8800 tonne per annum. The company took over the
operations of SSIPL (a partnership firm set up in 2008) with effect
from September 10, 2013.
SAMDARI STRIPS: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Samdari Strips Private Limited
E-370 A, MIA Phase II Basani Jodhpur 342005
Insolvency Commencement Date: July 31, 2023
Estimated date of closure of
insolvency resolution process: January 27, 2024
Court: National Company Law Tribunal, Jaipur Bench
Insolvency
Professional: Mr. Sudhir Bhansali
52, Sangram Colony, Csheme, Jaipur-302001
Email: irpeamour@gmail.com
Email: sandaristrips@gmail.com
Last date for
submission of claims: August 15, 2023
SAVIOUR MINES: CARE Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Saviour
Mines and Minerals Private Limited (SMMPL) continue to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.50 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 25, 2022,
placed the rating(s) of SMMPL under the 'issuer non-cooperating'
category as SMMPL 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. SMMPL continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
June 10, 2023, June 20, 2023, June 30, 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).
Saviour Mines and Minerals Private Limited (SMMPL) was incorporated
in the year 2007 and taken over by Mr. Rama Krishnaiagh Alam and
Mr.U. Bhargav in 2013. The company is engaged in mining of granite
and processing of granite slabs. SMMPL started its commercial
operations from 2014 October. SMMPL has installed capacity of 15
tonnage p.a. The company has entered into
lease agreement with Telangana State Government for mining under 4
hectares of granite land area located at Warangal for a tenure of
15 years. The clientele of the company covers Maharashtra,
Karnataka, Andhra Pradesh, Tamilnadu and Orissa.
SCHON ULTRAWARES: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Schon Ultrawares Private Limited
Registered Office:
94, Neel Kamal Apartments, Vikas Puri,
West Delhi, Delhi-110018
Principal Office:
F - 73 & 74, EPIP, Nemrana,
Rajesthan-301705
Insolvency Commencement Date: August 1, 2023
Estimated date of closure of
insolvency resolution process: January 28, 2024
Court: National Company Law Tribunal, New Delhi Bench-V
Insolvency
Professional: Mr. Sandeep Mahajan,
C2/288, Janak Puri, New Delhi-110058
Email: sandeep8mahajan@gmail.com
Flat No 409, 4th Floor Ansal Bhawan,
16, K G Marg, Connaught Place,
New Delhi-110001
Email: schonultrawares.ibc@gmail.com
Last date for
submission of claims: August 16, 2023
SHAILA CLUBS: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Shaila Clubs and Resorts Private Limited
Kore Plaza, Behind Hotel Pai- Prakash,
Vishrambag Sangi Maharashtra, India 416415
Insolvency Commencement Date: July 28, 2023
Estimated date of closure of
insolvency resolution process: January 25, 2024
Court: National Company Law Tribunal, Mumbai Bench
Insolvency
Professional: Mr. Milind Kasodekar
KMDS & Associates, Company Secretaries
3rd Floor, Satyagiri Apartments 77,
Vijayanagar Colony, 2147,
Sadashiv Peth, Pune - 411030
Email: milind.kasodekar@kmdscs.com
Last date for
submission of claims: August 12, 2023
SIMPLEX CASTINGS: Ind-Ra Moves D Issuer Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Simplex Castings
Ltd.'s (SCL) Long-Term Issuer Rating to non-cooperating category.
The issuer did not participate in the rating exercise despite
continuous requests and follow ups by the agency. Therefore,
investors and other users are advised to take appropriate caution
while using these ratings. The rating will now continue to appear
as 'IND D (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR350 mil. Fund-based working capital limit (Long-term)
migrated to non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating;
-- INR370 mil. Non-fund-based working capital limit (Short-term)
migrated to non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating; and
-- INR84.6 mil. Term loan (Long-term) due on March 2025 migrated
to non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
June 7, 2022. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
Company Profile
SCL was established in 1970 and reconstituted as a private limited
company in 1980. In 1993, it became a public limited company and
was listed on the BSE Ltd. The company manufactures iron and steel
casting products, which are used in various industries such as
railways, steel and defense, at its two manufacturing units, one
each in Bhilai and Tedsara.
SPICEJET LTD: Ordered to Pay INR100 Crore to Kalanithi Maran
------------------------------------------------------------
The Economic Times reports that the Delhi High Court on Aug. 24
asked carrier SpiceJet and CMD Ajay Singh to pay former promoter of
the airline Kalanithi Maran a sum of INR100 crore by September 10
to prove bona fide, subject to their rights and contentions.
ET relates that the HC further warned the carrier that it may
attach the company's assets if the payment isn't made by September
10. The next date of hearing is on September 11.
A SpiceJet spokesperson said, "SpiceJet will honour the Delhi High
Court’s order and make the specified payment within the
prescribed timeframe."
Earlier, Maran's counsel had argued that SpiceJet and Singh filed
their affidavit in a 'sealed cover' and in a format not mandated by
law, ET reports. Singh was due to appear today in the Delhi HC for
non-compliance with the HC order that asked him to disclose assets
and revenue collection.
Maran's lawyer claimed that the company's liability to Maran now is
over INR395 crore, ET relates.
The Delhi HC earlier in August directed the airline and CMD to file
an affidavit disclosing their assets and their revenue collection
within one week's time, ET recalls.
ET relates that the Supreme Court had, on February 13, directed
SpiceJet to pay INR75 crore to decree holder (Kal Airways and
Maran) within a period of three months towards its interest
liability under the arbitral award, and had also clarified that in
the event of failure to pay, the entire award would become
executable in entirety in favour of decree holder.
In February 2015, Maran of the Sun Network and Kal Airways, his
investment vehicle, had transferred their 58.46 per cent stake in
SpiceJet to Singh for INR2 along with INR1,500 crore debt liability
after the airline was grounded due to a severe cash crunch. Singh
was the first co-founder of the airline and now the chairman and
managing director.
As part of the agreement, Maran and Kal Airways had claimed to have
paid Spicejet INR679 crore for issuing warrants and preference
shares. However, Maran approached the Delhi high court in 2017,
alleging SpiceJet had not issued convertible warrants and
preference shares nor returned the money.
About Spicejet
SpiceJet Limited -- http://www.spicejet.com/-- is an India-based
low-budget air carrier. The Company operates daily flights between
major cities in India. The carrier is India's second-biggest budget
airline, after IndiGo.
As recently reported in the Troubled Company Reporter-Asia Pacific,
aircraft lessor Wilmington Trust SP Services (Dublin) Ltd has filed
a petition for initiating the corporate insolvency resolution
process against SpiceJet.
This is the third case filed against the airline, according to The
Economic Times. Two other cases under Section 9 of the Insolvency
and Bankruptcy Code, 2016, have been filed by aircraft lessor
Aircastle (Ireland) Ltd and engine lessor Willis Lease Finance
Corporation.
Aircastle (Ireland) filed a CIRP petition against Spicejet on April
28, 2023, while Willis Lease Finance Corporation filed its petition
on April 12, 2023.
SRIKANTH INTERNATIONAL: CARE Keeps D Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Srikanth
International Private Limited (SIPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 36.50 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 26, 2022,
placed the rating(s) of SIPL under the 'issuer non-cooperating'
category as SIPL 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. SIPL continues to be
non-cooperative 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).
Srikanth International Private Limited was established in 2008 as a
partnership firm which was later on incorporated as private limited
company on March 15, 2018. The company is promoted by Mr. Suresh
Kumar Voleti and Ms. Jaya Voleti. The company is engaged in the
business of processing and exporting of cultured shrimps to USA, EU
and Middle East, etc. The company's own processing facility is
located at Someswaram, Andhra Pradesh.
SRINIVASA FASHIONS: CARE Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Srinivasa
Fashions Private Limited (SFPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 1.23 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 65.00 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 27, 2022,
placed the rating(s) of SFPL under the 'issuer non-cooperating'
category as SFPL 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. SFPL continues to be
noncooperative 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).
Srinivasa Fashions Private Limited (SFPL) is a closely-held family
business incorporated in the year 2005 by Mr. C.V Ravindran, a
first-generation entrepreneur along with his wife Mrs Vijaylakshmi
Ravindran. The company is engaged in the manufacture and export of
readymade garments (RMG) (mainly men's wear) to Europe and USA. One
of the lenders of the company has confirmed that the entity has not
availed moratorium on COVID-19 for its sanctioned facilities.
STAR PAPER: Ind-Ra Withdraws BB LongTerm Issuer Rating
------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Star Paper Mills
Limited's (SPML) Long-Term Issuer Rating of 'IND BB (ISSUER NOT
COOPERATING)'.
The instrument-wise rating actions are:
-- INR190 mil. Fund-based working capital limit is withdrawn; and
-- INR100 mil. Non-fund-based working capital limit is withdrawn.
Key Rating Drivers
Ind-Ra is no longer required to maintain the ratings, as the agency
has received a no-dues certificate from the rated facilities'
lender. This is consistent with Ind-Ra's Policy on Withdrawal of
Ratings.
Company Profile
SPML, established in 1938, operates an integrated pulp and paper
mill in Saharanpur, Uttar Pradesh that has four paper machines. The
company produces a range of industrial, packaging and cultural
papers catering to segments and meeting varied requirements of
customers. SPML is a part of the Duncan Goenka group. Other
companies in the group are Duncan Tea Limited, Duncan Industries
Limited and Stone India Limited.
TALWAR MOBILES: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Talwar
Mobiles Private Limited (TMPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 25.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated July 13, 2022,
placed the rating(s) of TMPL under the 'issuer non-cooperating'
category as TMPL 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. TMPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 29, 2023, June 8, 2023, June 18, 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).
Incorporated in 1998, Talwar Mobiles Pvt Ltd (TMPL) belongs to
Talwar Group, which was founded and promoted by Mr. Sunil Talwar
who has an overall automobile experience of about three decades.
The Talwar Group mainly comprises of six automobile dealerships.
Talwar Auto Garages Pvt Ltd is the Authorized dealers for Volvo and
Eicher Motors in Telangana. TMPL is the dealer of Hyundai Motors
under the trade name of Talwar Hyundai. Talwar Cars Pvt Ltd is the
dealership of Volvo Cars India while Talsons Motors Private Limited
is the dealer for Volvo and Eicher Motors in Pune. Rebel
Motorcycles Private Limited is the dealer for Triumph Motorcycles
in Telangana and T & R Motors is the dealer for Bajaj Motorcycles
in Hyderabad. The company is one of the leading dealers in southern
India with four exclusive showrooms and three service centers in
Hyderabad and Secunderabad together.
TANISH NIRMITI: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Tanish Nirmiti LLP
A-102, ICC Trade Tower,
Senapati Bapat Road,
NA Pune, Maharasthra 411016
Insolvency Commencement Date: July 31, 2023
Estimated date of closure of
insolvency resolution process: January 27, 2024
Court: National Company Law Tribunal, Mumbai Bench
Insolvency
Professional: Neha Jain Nemani
2404-B, Parthenon Building,
JP Road, 4 Bungalows,
Andheri West, Mumbai City Maharashtra - 400053
Email: nehavkjain@gmail.com
Email: cirp.tanishnirmit@gmail.com
Last date for
submission of claims: August 14, 2023
TIGER 4: CRISIL Keeps B+ Debt Ratings in Not Cooperating
--------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Tiger 4
Security and Detective India Private Limited (Tiger) continue to be
'CRISIL B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2.75 CRISIL B+/Stable (Issuer Not
Cooperating)
Long Term Loan 0.01 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Long Term 9.24 CRISIL B+/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with Tiger 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 Tiger, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on Tiger
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
Tiger continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Tiger provides manpower for security and housekeeping services
founded by Mr Himmat Singh Jhala. It was earlier established as a
proprietorship concern, Tiger 4 Secure Core & Detective, in 2008
which was later reconstituted as a private limited company on
February 26, 2010.
TUBE TURN: CRISIL Lowers Rating on Long and Short Term Loans to D
-----------------------------------------------------------------
CRISIL Ratings has downgraded its rating on the bank facilities of
Tube Turn India Private Limited (TTIPL) to 'CRISIL D/CRISIL D
Issuer Not Cooperating' from 'CRISIL B+/Stable/ CRISIL A4 Issuer
Not Cooperating' based on publicly available information.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Rating - CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
Short Term Rating - CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL A4 ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with TTIPL for
obtaining information through letters and emails dated August 29,
2022 and October 31, 2022 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of TTIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on TTIPL
is consistent with 'Assessing Information Adequacy Risk'. CRISIL
Ratings has downgraded its rating on the bank facilities of DIPL to
'CRISIL D/CRISIL D Issuer Not Cooperating' from 'CRISIL B+/Stable/
CRISIL A4 Issuer Not Cooperating' based on publicly available
information.
Incorporated in 1996, TTIPL manufactures pipe fittings, seamless
and welded construction items such as elbows, T-fittings, flanges
and caps, butt-weld and socket-weld fittings, branched outlet
fittings, and screwed forged fittings that are used in oil and gas,
power, steel, textiles, and consumer industries. The company is
promoted by Mr Ashit Kadakia and his family.
VIJAI ELECTRICALS: Ind-Ra Affirms BB- LongTerm Issuer Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Vijai Electricals
Limited's (VEL) Long-Term Issuer Rating at 'IND BB-'. The Outlook
is Positive.
The instrument-wise rating actions are:
-- INR1,092.3 bil. (reduced from INR1.172 bil.) Fund-based
working capital limit affirmed with IND BB-/Positive/IND A4+
rating; and
-- INR5,982.7 bil. (reduced from INR7,935.9 bil.) Non-fund-based
working capital limit affirmed with IND A4+ rating.
ANALYTICAL APPROACH: Ind-Ra continues to take a standalone view of
VEL to arrive at the ratings, while adjusting them for the equity
required to be infused by the company in its under-construction
special purpose vehicle, Vijai Electricals Algerie SPA in Algeria,
in which VEL held a 40% stake at FYE23.
The Positive Outlook reflects VEL's robust order book at FYE23,
translating into a strong pick up in its execution along with an
improvement in the working capital lock-up, and margin profile,
leading to an improvement in the credit metrics.
Key Rating Drivers
Liquidity Indicator – Stretched despite Improvement: VEL's
average monthly peak utilization of its fund-based working capital
limits stood over 96% and that of its non-fund-based limits stood
at 99% for the 12 months ended July 2023. The company's net working
capital (receivables + inventory + mobilization advances + security
deposits - accounts payables - customer advances - contract
liabilities) was on an improving trajectory and reduced to 187.5%
of the revenue at FYE23 (FYE22: 216%). The company could collect
its receivables, helping it reduce its working capital
requirements. VEL effectively realized debtors and retention money
worth INR1,440 million in FY23. Ind-Ra expects the net working
capital to remain elevated in FY24. The company had unrestricted
cash balance of INR372 million in FYE23 (FYE22: INR972 million).
VEL has a total debt servicing obligations of INR692 million over
FY24-FY25. Ind-Ra notes that VEL successfully came out of a
corporate debt restructuring in July 2023. It will be able to
secure necessary enhancements post the six-month cooling period
ending December 2023.
Decline in Operational Performance and Credit Metrics: VEL's
operational performance has been deteriorating since FY19, due to a
decline in export orders and slower execution of its order book. As
per VEL's FY23 provisional financial numbers, its revenue declined
to INR1,621 million (FY22: INR1,731 million) and the EBIDTA margins
remained negative in the past three year (FY23: negative 13.1%;
FY22: negative 14.7%; FY21: negative 0.9%), on account of an
increase in its fixed costs such as employee expenses and input
costs. Ind-Ra expects the execution to pick up pace in FY24 on
account of its increased orderbook.
The credit metrics have been deteriorating on account of the
decline in its revenue and EBITDA (FY23: negative INR212 million;
FY22: negative INR254 million), coupled with an increase in the
working capital utilization. As a result, the interest coverage
ratio (EBIDTA/interest) remained negative 0.8x in FY23 (FY22:
negative 0.9x; FY21: negative 0.1x) and the net adjusted leverage
not being meaningful due to negative EBITDA. Ind-Ra expects the
interest coverage ratio to gradually increase to over 1.3x by FY26
while the net leverage is likely to remain elevated in FY24 and
gradually lower to 2.5x by FY26.
Inherent Industry Risk: VEL is an engineering, procurement and
construction player exposed to high industry competition, delays in
the realization of receivables, project delays, cost and timeline
overruns and litigation. While the majority of the existing order
book is concentrated in the transmission and distribution sector,
the company is exposed to cyclicality this sector. Also, any
pressure on the cash flows of the counterparties could adversely
impact VEL's collections.
Robust Order Book: VEL's order inflows picked up 217% yoy to
INR9,885million in FY23 after remaining subdued over the past
two-to-three years. Its order book increased to INR12,636 million
at FYE23 (FYE22: INR4,309 million), providing a strong revenue
visibility of 7.8x of its FY23 revenue (FY22: 2.5x; FY21: 1.0x).
The majority of these order inflows belonged to the rural
electrification (RE) projects. Out of the order book as of March
2023, more than 85% was from the project division of the company,
which is majorly into electrification of rural villages, while the
rest comprised manufacturing of transformers, conductors and
related products.
Strong Counterparty Profile: Gujarat discoms (Paschim Gujarat Vij
Company Ltd. and Uttar Gujarat Vij Company Limited), which are
graded at A+ in the Eleventh Annual Integrated Rating and Ranking
of Power Distribution Utilities by the Ministry of Power and Power
Finance Corporation Limited, accounted for 75% of the orders of the
RE order book and 69% of the overall order book at end July 2023.
Also, as the projects are scheduled to be delivered by March 2025,
the execution of VEL is likely to pick up pace in FY24.
Experienced Promoter: VEL's promoter has over four decades of
experience in the manufacturing of electrical equipment with a
specialization in transformer design.
Rating Sensitivities
Upgrade: The following developments, individually or collectively,
on a sustained basis, may result in upgrade:
an increase in revenue visibility through fresh order inflows
an improvement in the credit profile through an increase in its
scale of operations along with an improvement in the margins,
resulting in the interest coverage remaining above 1.25x
Outlook Revision to Stable: The following developments,
individually or collectively, all on sustained basis, will result
in a rating downgrade:
-- longer working capital cycle, further impacting the liquidity
profile,
-- deterioration in the credit profile with the interest coverage
ratio remaining below 1.25x
-- the inability to execute its order book, resulting in a fall in
the scale of operations.
Company Profile
VEL, incorporated in 1980, manufactures electricity distribution
transformers and erects T&D lines. In 2005, it entered the business
of execution of rural electrification projects. It has a
transformer production site in Haridwar and a conductor
manufacturing facility in Roorkee.
VIJETHA SUPER: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Vijetha Super
Market (VSM) continue to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Drop Line 3.5 CRISIL D (Issuer Not
Overdraft Cooperating)
Facility
Overdraft 2.5 CRISIL D (Issuer Not
Facility Cooperating)
Proposed Long Term 3.5 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 2.5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with VSM 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 VSM, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on VSM
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
VSM continues to be 'CRISIL D Issuer Not Cooperating'.
Set up in December, 2003 as a partnership firm, VSM owns and
operates a three star hotel in Srikakulam, in addition to a bar and
restaurant. The firm also operates a super market in the same
property.
[*] INDIA: Banking System Liquidity in Deficit in FY2024
--------------------------------------------------------
The Economic Times reports that liquidity in the banking system has
slipped into a deficit for the first time in FY24 as the Reserve
Bank of India's (RBI) decision to impound a chunk of banks' extra
funds - and hence reduce inflation risks - has led to a cash
shortfall amid tax outflows.
ET, citing daily central bank data, discloses that the RBI injected
funds worth INR23,644.4 crore into the banking system on August 21,
marking the first infusion of cash since March 27. An injection of
funds by the RBI reflects deficit liquidity conditions in the
banking system, ET notes.
=========
J A P A N
=========
UNIVERSAL ENTERTAINMENT: S&P Affirms 'CCC+' LT ICR on Legal Risk
----------------------------------------------------------------
S&P Global Ratings has affirmed its 'CCC+' long-term issuer credit
and senior guaranteed unsecured debt ratings on Japan-based gaming
machine and casino company Universal Entertainment Corp. (UE). The
outlook on the long-term issuer credit rating remains negative.
S&P said, "We base the rating affirmation on our view that UE's
ability to meet its debt obligations over the next one to two years
still depends on lower risk of litigation and smooth refinancing of
existing U.S. dollar-denominated bullet bonds. It also reflects
that UE's performance has been recovering because the COVID-19
pandemic is winding down. UE's litigation risk can recede if the
Philippine Supreme Court revokes its status quo ante decision
ordering UE's casino-resort operating subsidiary to restore UE
founder Kazuo Okada to his status prior to his removal in 2017. If
this occurs, we see a higher likelihood that UE may be able to
smoothly refinance JPY114 billion in U.S. dollar bonds due in
December 2024.
"We expect UE's EBITDA to continue to improve in the next one to
two years and to exceed JPY40 billion annually, above levels of the
past several years (JPY30 billion in fiscal 2022, which ended Dec.
31, 2022). We believe the company's key domestic pachinko and
pachislot (gaming) machine business and its casino resort business
in the Philippines will remain robust. UE will continue to sell
about 150,000 gaming machines per year, partly supported by solid
market conditions for pachislot machines and rollouts of smart slot
products. We believe rising operating rates of pachislot machines
installed in pachinko halls will continue to support robustness of
the pachislot market. We also expect UE's casino resort business to
continue to improve moderately thanks to strong customer visitation
and cost reductions in the last two to three years.
"However, we consider smooth refinancing of UE's U.S. dollar bonds
due in December 2024 essential for the company to continue to meet
its debt obligations and maintain its current capital structure
over the next one to two years. This is even considering the
expected improvement in its business performance and cash flow
generation. The U.S. dollar bonds account for more than 90% of UE's
entire gross debt before adjustment. UE founder Kazuo Okada and his
associates physically took over operation of the Okada Manila
casino resort complex in the Philippines in May 2022. UE regained
control of the resort complex in September the same year. However,
Mr. Okada remains on the board of UE's casino resort operating
subsidiary in the Philippines following a status quo ante order
that the country's Supreme Court issued. If the Philippine Supreme
Court does not formally revoke the order, UE's financing from
financial institutions to refinance the U.S. dollar bonds may not
go smoothly, in our view. The company expected the court to make
its decision within one to two months of commencement of a
rehearing, but almost a year has already passed and the rehearing
process is protracted.
"The negative outlook reflects our view of some possibility of
strong downward pressure on UE's liquidity. This is because, amid a
difficult environment for bond issuance and given risk of
litigation with the founder, the company may not be able to make
concrete plans to refinance the U.S. dollar bonds in the year
before the due date in December 2024."
S&P could consider downgrading UE if it sees a stronger likelihood
of either of the following scenarios:
-- No prospect arising of refinancing the bonds in the year before
the due date, weakening the outlook for UE's liquidity; or
-- Business performance deteriorating considerably, lowering the
company's overall EBITDA below JPY20 billion per year.
S&P could consider revising the outlook upward if it sees an
increased likelihood of both of the following:
-- UE generates overall EBITDA of more than JPY25 billion annually
in a stable manner backed by robust financial performance; and
-- The U.S. dollar bonds are refinanced with stable long-term
funding.
=====================
N E W Z E A L A N D
=====================
BEE BIO: Creditors' Proofs of Debt Due on Sept. 29
--------------------------------------------------
Creditors of Bee Bio Limited are required to file their proofs of
debt by Sept. 29, 2023, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Aug. 18, 2023.
The company's liquidators are:
Lynda Smart
Derek Ah Sam
Rodgers Reidy
PO Box 39090
Harewood
Christchurch 8545
HERON CAMPERS: Creditors' Proofs of Debt Due on Oct. 12
-------------------------------------------------------
Creditors of Heron Campers Limited are required to file their
proofs of debt by Oct. 12, 2023, to be included in the company's
dividend distribution.
The High Court at Christchurch appointed Lynda Smart and Derek Ah
Sam of Rodgers Reidy as liquidators on Aug. 17, 2023.
HOME&WE! LIMITED: Court to Hear Wind-Up Petition on Aug. 31
-----------------------------------------------------------
A petition to wind up the operations of Home&We! Limited will be
heard before the High Court at Christchurch on Aug. 31, 2023, at
10:00 a.m.
Bush Inn Shopping Centre Limited filed the petition against the
company on July 25, 2023.
The Petitioner's solicitor is:
Tracey Preston
Level 7
18 Shortland Street
Auckland
MARINE & INDUSTRIAL: Creditors' Proofs of Debt Due on Sept. 15
--------------------------------------------------------------
Creditors of Marine & Industrial Engineering Limited are required
to file their proofs of debt by Sept. 15, 2023, to be included in
the company's dividend distribution.
The High Court at Tauranga appointed Wendy Somerville and Malcolm
Hollis of PwC Waikato as liquidators on Aug. 14, 2023.
WILLOW TRANSPORT: Court to Hear Wind-Up Petition on Aug. 31
-----------------------------------------------------------
A petition to wind up the operations of Willow Transport Limited
will be heard before the High Court at Christchurch on Aug. 31,
2023, at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on June 28, 2023.
The Petitioner's solicitor is:
Arna McAvoy
Inland Revenue, Legal Services
PO Box 1782
Christchurch 8140
=================
S I N G A P O R E
=================
CHINA GREAT: Final Meeting Set for October 10
---------------------------------------------
Members and creditors of China Great Land Holdings Ltd will hold
their final meeting on Oct. 10, 2023, at 10:00 a.m. via via Zoom
tele-conference.
At the meeting, Tan Wei Cheong, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
VALE SHIPPING: Members' Final Meeting Set for Sept. 22
------------------------------------------------------
Members of Vale Shipping Holding Pte. Ltd will hold their final
meeting on Sept. 22, 2023, at 10:00 a.m., at 144 Robinson Road,
#14-02 Robinson Square, in Singapore.
At the meeting, Abuthahir Abdul Gafoor and Yessica Budiman, the
company's liquidators, will give a report on the company's wind-up
proceedings and property disposal.
=====================
S O U T H K O R E A
=====================
LIME ASSET: Financial Regulator Finds More Alleged Law Violations
-----------------------------------------------------------------
Yonhap News Agency reports that Korea's financial regulator said on
Aug. 24 it has confirmed additional alleged law violations of asset
management companies that had been at the center of a massive
financial fraud scandal.
According to Yonhap, the Financial Supervisory Service (FSS) said
it has conducted additional investigation into Lime Asset
Management, Optimus Asset Management and Discovery Asset Management
that were found in recent years to have sold fraudulent funds and
caused huge losses to investors.
Lime is newly suspected of covering up the investment losses of
four of its funds by dispersing the losses to other funds in 2019.
Five companies Lime had invested in are also accused of
embezzlement of a combined KRW200 billion (US$150.8 million) of
company funds from 2017 to 2022.
Yonhap relates that the FSS also suspects an executive at Optimus,
whose identity has been withheld, bribed a high-ranking official of
an unidentified public institution in exchange for receiving KRW106
billion worth of investment in its fund in 2016.
An unidentified executive of a special purpose company (SPC), into
which Optimus invested, has been found to have used KRW1.2 billion
for personal purposes after withdrawing KRW1.5 billion from
Optimus' fund money, which the SPC had been holding from 2018 to
2019, according to the FSS.
An unidentified executive of a special purpose company (SPC)
invested by Optimus has been found to have used KRW1.2 billion for
personal purposes after withdrawing KRW1.5 billion from Optimus'
fund money, which the SPC had been holding from 2018 to 2019,
according to the FSS.
Other former Optimus executives are also accused of embezzlement
and unfair transactions, Yonhap relays.
Yonhap adds that the FSS also said Discovery is suspected of
falsely raising investment for new funds for redemption of failed
funds in 2019, and four of its executives allegedly used
undisclosed information to make unfair profits.
The FSS said it has reported the allegations to investigative
authorities and will take punitive actions against them.
Lime and Optimus went bankrupt last year after causing trillions of
won worth of financial damage to their investors, Yonhap notes.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2023. All rights reserved. ISSN: 1520-9482.
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