/raid1/www/Hosts/bankrupt/TCRAP_Public/230908.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, September 8, 2023, Vol. 26, No. 181
Headlines
A U S T R A L I A
HAWTHORN DAY: Liquidators Appointed for Cosmos Clinic
JUDO CAPITAL 2023-1: Moody's Assigns (P)B2 Rating to Class F Notes
LORENA GOLD: First Creditors' Meeting Set for Sept. 14
MANRAGS ESSENTIALS: First Creditors' Meeting Set for Sept. 14
MARITANA CONSTRUCTIONS: Second Creditors' Meeting Set for Sept. 14
NATIONAL INSULATION: Second Creditors' Meeting Set for Sept. 13
PLENTI PL-GREEN 2022-1: Moody's Ups Rating on Class F Notes to Ba1
TRADEMARK JOINERY: Second Creditors' Meeting Set for Sept. 13
YOUPLA GROUP: Unit Penalised AUD1.2 Million by Federal Court
C H I N A
CAR INC: S&P Affirms 'B-' LT ICR & Alters Outlook to Positive
CHINA: Distressed Developers Soar in Wave of Speculative Buying
DALIAN WANDA: S&P Withdraws 'CCC' LongTerm Issuer Credit Rating
VNET GROUP: Moody's Lowers CFR to Caa1, Outlook Remains Negative
I N D I A
A. R. ENTERPRISES: CARE Keeps B- Debt Rating in Not Cooperating
ADORATEX: CRISIL Assigns B Rating to INR10cr Packing Loan
ASHWANI GOYAL: CARE Keeps D Rating in Not Cooperating Category
AVADH COTTON: CARE Keeps B- Debt Rating in Not Cooperating
BARODA RAYON: CRISIL Assigns B- Rating to INR75cr LT Loan
BKM INDUSTRIES: CARE Keeps D Debt Ratings in Not Cooperating
BOSTIN ENGINEERS: CRISIL Cuts Rating on Long/Short Term Loan to D
CHEMROW INDIA: CARE Keeps B- Rating in Not Cooperating Category
GENESYS BIOLOGICS: CRISIL Lowers Rating on INR5.5cr Loan to C
GULF PETROCHEM: CRISIL Withdraws D Rating on INR76.86cr Term Loan
HOTEL MEGHNA: CARE Lowers Rating on INR11.96cr LT Loan to B-
IRAA CLOTHING: CRISIL Cuts Rating on Long/Short Term Loan to D
JAY AGRO: CARE Keeps D Debt Rating in Not Cooperating Category
JAYAMALAR SPINNING: CRISIL Lowers Rating on INR8cr Cash Loan to D
M. H. KHANUSIYA: CARE Keeps B- Debt Rating in Not Cooperating
MAISON DE COUTURE: CARE Keeps D Debt Rating in Not Cooperating
MEHSANA DAIRY: CRISIL Reaffirms D Rating on INR22cr Cash Loan
MOHIT ISPAT: CARE Keeps B+ Debt Ratings in Not Cooperating
MOVENPICK HOTELS: Voluntary Liquidation Process Case Summary
NEELAM DYEING: CARE Lowers Rating on INR8cr LT Loan to D
NOOR INDIA: CARE Keeps D Debt Rating in Not Cooperating Category
POWER ENGINEERING: CRISIL Reaffirms C Rating on INR9cr Cash Loan
REAL TEXTILES: CRISIL Keeps B Debt Ratings in Not Cooperating
ROHIT STEELS: CARE Keeps B- Rating in Not Cooperating Category
SINGUR COLD: CARE Reaffirms B+ Rating on INR6.50cr LT Loan
SVS PIPE: CRISIL Reaffirms B+ Rating on INR4.0cr Term Loan
TECPRO SYSTEMS: CRISIL Keeps D Debt Ratings in Not Cooperating
TISSORI INDIA: CARE Keeps D Debt Rating in Not Cooperating
VARSHA CORP: Liquidation Process Case Summary
WORSTED OVERSEAS: CARE Keeps D Debt Rating in Not Cooperating
YADVENDRA FOODS: CARE Keeps B- Rating in Not Cooperating Category
ZEE ENTERTAINMENT: IDBI Files Appeal Against NCLT Order on Merger
I N D O N E S I A
LUMMO: Enters Into Voluntary Liquidation
N E W Z E A L A N D
DICK SMITH: KPMG Releases 16th Report to Creditors
INDUSTRIAL AND COMMERCIAL: Creditors' Proofs of Debt Due Oct. 13
NOIHSAF 2023: Creditors' Proofs of Debt Due on Oct. 3
P PROS: Court to Hear Wind-Up Petition on Sept. 28
PROFESSIONAL BAY: BDO Tauranga Appointed as Liquidators
REDCURRENT LIMITED: Liquidators Fail to Sell Retailer
TUHOE MATAURANGA: Court to Hear Wind-Up Petition on Sept. 12
S I N G A P O R E
DOWELL ENGINEERING: Creditors' Meetings Set for Oct. 12
GRAINS AND INDUSTRIAL: Commences Wind-Up Proceedings
INGENICO PAYMENTS: Creditors' Proofs of Debt Due on Oct. 7
LEO PHARMA: Creditors' Proofs of Debt Due on Oct. 7
TALENTX AI: Creditors' Proofs of Debt Due on Sept. 30
TULP STREET: Creditors' Proofs of Debt Due on Sept. 19
WBL GLOBAL: Creditors' Meetings Set for Sept. 18
WORLD FUEL: Creditors' Proofs of Debt Due on Oct. 6
T H A I L A N D
JKN GLOBAL: Shares Plunge as Debt Holders Demand Payment
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A U S T R A L I A
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HAWTHORN DAY: Liquidators Appointed for Cosmos Clinic
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The Australian reports that a cosmetic surgery clinic named as part
of the "cosmetic cowboys" scandal is in liquidation, a court has
been told.
The Australian relates that Hawthorn Day Surgery Pty Ltd, which
traded as Cosmos Clinic in Melbourne, was due to face the Melbourne
Magistrates' Court on Sept. 6 but failed to appear.
According to the report, the company and one of its directors, Dr
Reza Ahmadi, are facing charges of allegedly continuing to perform
surgeries during Melbourne's lockdowns in breach of chief health
officer directions.
Magistrate Rosemary Falla was told Hawthorn Day Surgery was being
"wound up" and liquidators had been appointed in June.
The Australian says Dr Ahmadi, who was banned by the medical
regulatory body from performing cosmetic surgery in April last
year, appeared in court alongside his lawyer.
His lawyer told the court the case against his client had blown
out, with what was previously a 161-page brief of evidence expanded
last week to "4,000-plus pages of materials".
He requested, and Ms. Falla approved, an adjournment to review the
new material, The Australian notes.
The Australian, citing charge documents, relates that Mr Ahmadi is
accused of breaching Covid-19 public health orders that permitted
only urgent elective surgery to address "significant medical
conditions".
He is charged with 52 offences, alleging he permitted or provided
cosmetic surgeries in October and November 2021.
Hawthorn Day Surgery Pty Ltd is facing 28 charges relating to
refusing or failing to comply with the health directions by
allegedly allowing those alleged surgeries to take place, according
to the report.
According to a statement on Cosmo Clinic's website, Dr Ahmadi was
employed as the medical director of the Melbourne branch in 2019
and operated the facility between February 2021 and January 2022.
"Cosmos Aesthetics head office, located in Sydney, was not aware
that Dr Ahmadi was (allegedly) operating during Covid lockdown in
Melbourne," the statement said.
"As soon as Cosmos Aesthetics head office was made aware of Dr
Ahmadi's (alleged) operations during this time, an internal
investigation was launched.
"Poor medical outcomes were also (allegedly) uncovered at this
stage . . . the findings were reported to AHPRA due to concerns for
the safety of the public and Dr Ahmadi's employment with Cosmos was
immediately terminated."
Dr. Ahmadi is now working as a general practitioner in the outer
southwestern Melbourne suburb of Werribee, The Australian notes.
The Australian says Cosmos Clinics is facing the prospect of two
class action lawsuits by law firms Maddens Lawyers and Goldman &
Co, which say they've received dozens of complaints from patients.
Last year, Health Minister Mark Butler announced a crackdown on the
cosmetic surgery industry following a series of reports by The Age,
The Sydney Morning Herald and 60 Minutes.
"These cosmetic cowboys have been riding unchecked for years," the
report quotes Mr. Mutler as saying in September.
"Australians deserve to have confidence in the safety and quality
of the cosmetic surgery industry and these changes will provide
that."
Both Hawthorn Day Surgery Pty Ltd and Dr Ahmadi will return to
court in December, the report adds.
JUDO CAPITAL 2023-1: Moody's Assigns (P)B2 Rating to Class F Notes
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Moody's Investors Service has assigned provisional ratings to notes
to be issued by AMAL Trustees Pty Limited, as trustee of Judo
Capital Markets Trust 2023-1.
Issuer: Judo Capital Markets Trust 2023-1
AUD260.40 million Class A Notes, Assigned (P)Aaa (sf)
AUD23.10 million Class B Notes, Assigned (P)Aa2 (sf)
AUD15.40 million Class C Notes, Assigned (P)A2 (sf)
AUD9.45 million Class D Notes, Assigned (P)Baa2 (sf)
AUD9.45 million Class E Notes, Assigned (P)Ba1 (sf)
AUD17.85 million Class F Notes, Assigned (P)B2 (sf)
The AUD14.35 million Class G Notes are not rated by Moody's.
The transaction is a securitisation of a portfolio of term loans,
line of credit facilities, and equipment leases to Australian
small- and medium-sized enterprises ("SME"). The transaction
portfolio also contains a small portion of home loans to
individuals related to the portfolio's SME obligors. Of the
portfolio balance, 57.8% benefits from security over real estate.
All portfolio receivables were originated by Judo Bank Pty Ltd
("Judo Bank", unrated). This is Judo Bank's first public asset-
backed securities (ABS) transaction.
Judo Bank is an Australian challenger bank providing business loans
to Australian SMEs. Judo Bank started originating business loans in
late 2018. The bank competes directly with other major Australian
banking groups with a comparable SME product offering and pricing.
The bank pursues a multi-channel distribution model using
commercial brokers and direct channels. Judo Bank has a loan book
of AUD8.9 billion as at June 30, 2023.
RATINGS RATIONALE
The provisional ratings take into account, among other factors, (1)
Moody's evaluation of the underlying receivables and their expected
performance; (2) evaluation of the capital structure and credit
enhancement provided to the rated notes; (3) availability of excess
spread over the transaction's life; (4) the liquidity reserve in
the amount of 1.5% of all notes; (5) the legal structure; (6)
experience of Judo Bank as servicer; and (7) presence of AMAL Asset
Management Limited as the back-up servicer.
In Moody's view, the credit strengths of this transaction include,
among others:
-- The strong obligor credit quality as demonstrated by the very
low levels of historical portfolio losses and arrears. As of June
30, 2023, 1.6% of Judo Bank's portfolio is 30+ days in arrears. As
at June 30, 2023 Judo bank has written off loans totaling AUD7.2
million which represents less than 0.06% of approximately AUD12.0
billion of origination.
-- All loans are secured by one or more of the following forms of
collateral: general security agreements ("GSA"), real estate,
equipment or standard guarantees from individuals or legal
entities. Of the portfolio balance, 57.8% benefits from security
over real estate.
-- A loss reserve equal to the greater of 0.75% of the invested
amount of the notes and AUD525,000 will be funded at settlement.
The reserve is available to cover losses not covered by excess
spread or the retention amount ledger.
However, the transaction has several challenging features, such
as:
-- Judo Bank's limited origination and servicing track record with
loan originations starting in late 2018. This risk is partly
mitigated by the fact that Judo Bank has an experienced management
and operational team with a substantial track record in Australian
business banking. Judo Bank also received its full Australian
banking license from the Australian Prudential Regulation Authority
("APRA") in April 2019 which helps embed strong standards of
governance over its operational and credit risk functions. Moody's
has also been able to assess the likely losses stemming from Judo's
portfolio against local banks and global benchmark SME portfolios.
-- Portfolio granularity: The number of obligors, 345 individual
borrower groups, is relatively low compared to other SME
securitisations. The lack of granularity is however partly
mitigated by no significant over exposure to individual obligors
and diversity at geographical and industry levels. The largest
obligor exposure is about 1.4% of the portfolio and the top 10
obligors account for less than 12.3%. The largest industry exposure
is 8.0% and the top 5 industry exposures account for less than 22%
-- A relatively high proportion of bullet loans comprising 31.2%
of the portfolio. Moody's stressed the default probability of these
loans to account for the refinance risk related to bullet
maturities.
-- The pro-rata amortisation of the subordinate classes of notes
(including Class G) will lead to reduced credit enhancement of the
senior notes in absolute terms. This exposes the senior notes to
the risk of loss in the tail end of the transaction, particularly
should the timing of defaults prove to be backloaded.
MAIN MODEL ASSUMPTIONS
-- Mean default rate: Moody's assumed a mean default rate of 8.4%
over a weighted average life of 4.5 years (equivalent to a Ba2
proxy rating). The default rate assumption was based on (1) the
historical performance data of Judo Bank's portfolios; (2)
benchmarking to comparable portfolios, including other Australian
bank SME portfolio performance data. In evaluating comparable
portfolios, Moody's took into consideration that the large majority
of Judo Bank's customers were either refinanced from, had prior, or
have continuing banking relationships with major Australian banks;
(3) the high proportion of bullet loans and the corresponding
impact on the assumed default rate and (4) the characteristics of
the loan-by-loan portfolio information.
-- Default rate volatility: Moody's assumed a coefficient of
variation (i.e. the ratio of standard deviation over the mean
default rate explained above) of 53.5%, as a result of the analysis
of the portfolio concentrations in terms of single obligors and
industry sectors.
-- Recovery rate: Moody's assumed a 60% stochastic recovery rate
with a standard deviation of 31.2%. The recovery rate assumption is
primarily based on the characteristics of the collateral-specific
loan-by-loan portfolio information. In particular, approximately
57.8% of the portfolio is secured by real estate collateral on
which third-party valuation has been obtained.
Moody's also took into consideration the recovery rates observed on
comparable bank SME portfolios.
-- Portfolio credit enhancement: Considering the above assumptions
the Aaa portfolio credit enhancement was set at 25.9%.
PORTFOLIO CHARACTERISTICS
The initial portfolio balance was AUD344,748,825, composed of 603
contracts to 345 borrower groups. The average outstanding loan
balance was AUD571,723 and the average borrower group exposure was
AUD999,272. The portfolio consists of business loan (77.2%), home
loans (6.8%), lines of credit (6.8%) and equipment loans (9.2%).
The top obligor exposure is 1.4% and the top ten obligors
constitute 12.3% of the portfolio. The top three industry exposures
are real estate services (8.0%), Accommodation (4.6%) and Cafes and
Restaurants (3.3%).
The weighted average portfolio yield was 8.37%.
KEY TRANSACTION STRUCTURAL FEATURES
-- The notes will be repaid on a sequential basis initially. On
and after the payment date occurring twelve months after the deal
closing date, all notes will receive their pro-rata share of
principal, provided step-down conditions are satisfied. These
include, among others, no unreimbursed charge-offs and payment date
occurring prior to the call option date. If step-down conditions
are no longer met, the repayment of principal will revert to
sequential. The call option date will occur on or after the date
on which the aggregate outstanding amount of the trust receivables
is less than or equal to 10% of the aggregate outstanding amount of
the trust receivables as at settlement date.
The transaction benefits from a funded liquidity reserve that is
sized at 1.5% of the aggregate invested amount of notes, subject to
a floor of AUD500,000, and is sufficient to cover 2.6 months of
required payments.
A loss reserve sized at 0.75% of the invested notes will be
available to cover losses remaining after application of excess
spread. It will be replenished through the interest waterfall, if
required, and is subject to a floor of AUD525,000.
Methodology Underlying the Rating Action
The principal methodology used in these ratings was "SME
Asset-Backed Securitizations methodology" published in July 2023.
Factors that would lead to an upgrade or downgrade of the ratings:
Factors that could lead to an upgrade of the notes include
better-than-expected collateral performance. The Australian economy
is a primary driver of performance.
A factor that could lead to a downgrade of the notes is
worse-than-expected collateral performance. Additionally, Moody's
could downgrade the ratings in case of poor servicing, error on the
part of transaction parties, a deterioration in the credit quality
of transaction counterparties, or lack of transactional governance
and fraud.
LORENA GOLD: First Creditors' Meeting Set for Sept. 14
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A first meeting of the creditors in the proceedings of Lorena Gold
Mine Pty Ltd and Ore Processing Services Pty Ltd will be held on
Sept. 14, 2023, at 11:00 a.m. and 11:30 a.m. respectively, at the
offices of Clifton Hall at Level 3, 431 King William Street in
Adelaide and via teleconference facilities.
Daniel Lopresti and Anna Agostino of Clifton Hall were appointed as
administrators of the company on Sept. 4, 2023.
MANRAGS ESSENTIALS: First Creditors' Meeting Set for Sept. 14
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A first meeting of the creditors in the proceedings of Manrags
Essentials Pty Ltd will be held on Sept. 14, 2023, at 3:00 p.m. via
teleconference only.
Stephen Dixon of Hamilton Murphy Advisory was appointed as
administrator of the company on Sept. 4, 2023.
MARITANA CONSTRUCTIONS: Second Creditors' Meeting Set for Sept. 14
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A second meeting of creditors in the proceedings of Maritana
Constructions Pty Ltd has been set for Sept. 14, 2023 at 10:00 a.m.
at Hotel TOTTO, 60 Market Street in Wollongong and via Microsoft
Teams.
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 Sept. 13, 2023 at 4:30 p.m.
Daniel O'Brien and Danny Vrkic of DV Recovery Management were
appointed as administrators of the company on Aug. 14, 2023.
NATIONAL INSULATION: Second Creditors' Meeting Set for Sept. 13
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A second meeting of creditors in the proceedings of National
Insulation Pty Ltd has been set for Sept. 13, 2023 at 10:00 a.m. at
the offices of Jirsch Sutherland at Suite 2, Level 14, 383 Kent
Street in Sydney and via virtual meeting.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Sept. 12, 2023 at 5:00 p.m.
Andrew John Spring and Peter John Moore of Jirsch Sutherland were
appointed as administrators of the company on Aug. 8, 2023.
PLENTI PL-GREEN 2022-1: Moody's Ups Rating on Class F Notes to Ba1
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Moody's Investors Service has upgraded the ratings on five classes
of notes issued by Plenti PL-Green ABS 2022-1 Trust.
The affected ratings are as follows:
Issuer: Plenti PL-Green ABS 2022-1 Trust
Class B Notes, Upgraded to Aaa (sf); previously on Jan 20, 2023
Upgraded to Aa1 (sf)
Class C Notes, Upgraded to Aa2 (sf); previously on Jan 20, 2023
Upgraded to A1 (sf)
Class D Notes, Upgraded to A1 (sf); previously on Jan 20, 2023
Upgraded to A3 (sf)
Class E Notes, Upgraded to Baa1 (sf); previously on Jan 20, 2023
Upgraded to Baa3 (sf)
Class F Notes, Upgraded to Ba1 (sf); previously on Jan 20, 2023
Upgraded to Ba3 (sf)
RATINGS RATIONALE
The upgrades were prompted by an increase in credit enhancement
available for the affected notes and performance of the collateral
pool to date.
Following the August 2023 payment date, the credit enhancement
available for the Class B, Class C, Class D, Class E and Class F
Notes has increased to 25.4%, 18.6%, 15.0%, 10.7% and 5.7%,
respectively, from 24.2%, 17.3%, 13.7%, 9.3% and 4.2% at the time
of the last rating action for these notes in January 2023.
As of end-July 2023, 3.1% of the outstanding pool was 30-plus day
delinquent, and 1.5% was 90-plus day delinquent. The deal has
incurred 1.4% and 1.3% of gross and net losses, respectively, to
date, which have been covered by excess spread.
Based on the observed performance to date and loan attributes,
Moody's has maintained its expected default assumption to 5.0% of
the current pool balance (equivalent to 3.6% of the closing pool
balance). Moody's has maintained the Aaa portfolio credit
enhancement of 25.5%. Moody's has also considered sensitivity
scenarios with higher expected default rate and different default
timing.
The transaction is a cash securitisation of personal loans,
renewable energy loans and renewable energy buy-now-pay-later
(BNPL) receivables originated by Plenti Finance Pty Limited.
The principal methodology used in these ratings was "Moody's
Approach to Rating Consumer Loan-Backed ABS" published in December
2022.
Factors that would lead to an upgrade or downgrade of the ratings:
Factors that could lead to an upgrade of the ratings include (1)
performance of the underlying collateral that is better than
Moody's expectations, and (2) an increase in the notes' available
credit enhancement.
Factors that could lead to a downgrade of the ratings include (1)
performance of the underlying collateral that is worse than Moody's
expectations, (2) a decrease in the notes' available credit
enhancement, and (3) a deterioration in the credit quality of the
transaction counterparties.
TRADEMARK JOINERY: Second Creditors' Meeting Set for Sept. 13
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A second meeting of creditors in the proceedings of Trademark
Joinery Pty Ltd has been set for Sept. 13, 2023 at 10:30 a.m. at
Level 2, AMP Building, 1 Hobart Place in Canberra.
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 Sept. 12, 2023 at 4:00 p.m.
Stephen John Hundy of Worrells was appointed as administrator of
the company on Aug. 9, 2023.
YOUPLA GROUP: Unit Penalised AUD1.2 Million by Federal Court
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The Federal Court has ordered a AUD1.2 million penalty against ACBF
Funeral Plans Pty Ltd (in liquidation) (ACBF) for misrepresenting
the sale and promotion of funeral expense insurance to Aboriginal
people.
The Court found that ACBF represented to ACF plan holders that they
would receive a lump sum payment of their chosen benefit amount,
when in fact they would only be reimbursed for funeral-related
expenses up to the benefit amount upon production of proof that
those expenses had been incurred.
ASIC Deputy Chair Sarah Court said, 'ASIC took the case to Court in
October 2020 because of the harm we believed this business was
causing to Aboriginal people.
'Taking regulatory action where misconduct is targeted at
Aboriginal and Torres Strait Islander peoples is a priority that we
are committed to, and we will continue to work with stakeholders to
achieve appropriate outcomes.'
The court did not accept ASIC's case that ACBF had falsely
represented that:
* it was owned or managed by an Aboriginal person or persons,
* the ACF Plan had Aboriginal community approval, or that
* the ACF Plan was more beneficial to Aboriginal consumers
than other funeral insurance products generally available
at the time.
The court also did not accept that parent company Youpla Group was
involved in the contravention by ACBF.
ASIC is carefully reviewing the judgment.
ACBF Funeral Plans, a wholly owned subsidiary of Youpla Group,
offered, promoted and sold the ACF Plan, a funeral expenses
insurance policy, primarily to Aboriginal consumers. Plan holders
of the ACF Plan paid fortnightly premiums for their nominees, such
as their family members, to be covered for funeral related expenses
up to the selected benefit amount. Plan holders made these regular
premium payments to keep the cover on foot.
Youpla Group (then ACBF Group Holdings Pty Ltd) was the subject of
a case study in the Royal Commission into Misconduct in the
Banking, Superannuation and Financial Services Industry.
ASIC commenced proceedings in this matter in October 2020.
On March 11 and April 27, 2022 respectively, ACBF Funeral Plans and
Youpla Group went into liquidation. ASIC sought leave to continue
the proceedings due to the importance of general deterrence in
relation to the defendants' conduct.
ASIC and NSW Fair Trading made a joint application to the Supreme
Court for orders appointing special purpose liquidators to
investigate whether money can be recovered for creditors of the
Youpla Group companies. On Dec. 8, 2022, the Court made orders
appointing Mr. Derrick Vickers and Ms. Melissa Humann of PwC as
special purpose liquidators of the Youpla Group entities. Mr David
Stimpson of SV Partners remains the general-purpose liquidator of
Youpla Group.
On Aug. 30, 2023, ASIC commenced civil penalty proceedings in the
Federal Court against five former directors and officers of ACBF
Funeral Plans and Youpla Group for breaches of their duties.
The Federal Government has previously announced the Youpla Group
Funeral Benefits Program. The Program will pay a funeral benefit
for a person who has passed away that was a Youpla Group fund
member on or after April 1, 2020. If the member's funeral was
already paid, an application can still be made. The Program will
run until Nov. 30, 2023.
ASIC's Moneysmart website has information about the different
options to pay for your family members' funerals and for planning
your funeral arrangements.
Consumers who have been affected by this matter can contact
financial counselling and legal services organisations such as Mob
Strong Debt Help to understand their options.
ASIC acknowledges that the conduct of ACBF/Youpla may have caused
significant distress for affected consumers. 13 YARN (13 92 76) is
a First Nations crisis support line available 24 hours a day, 7
days per week.
Seven Youpla Group entities went into liquidation between November
2021 and April 2022.
Three of the Youpla Group entities in liquidation are registered
funeral contribution funds under NSW State legislation and their
winding up is regulated by NSW Fair Trading.
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C H I N A
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CAR INC: S&P Affirms 'B-' LT ICR & Alters Outlook to Positive
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On Sept. 4, 2023, S&P Global Ratings revised its rating outlook on
CAR Inc. to positive from negative. At the same time, S&P affirmed
its 'B-' long-term issuer credit rating on the company and its
senior unsecured notes.
The positive outlook reflects S&P's expectation that CAR's
liquidity will improve over the next 12 months, driven by the
company's steady operating performance, disposal of more Borgward
cars, and potential progress on refinancing plans.
CAR's liquidity will improve if stronger demand for car rentals
sustains and the company can secure additional long-term financing.
Demand for car rental in China has recovered substantially in 2023,
even surpassing the pre-COVID level, as the pandemic is largely
behind us. A sustained recovery could provide CAR with operating
cash flows of Chinese renminbi (RMB) 2.8 billion-RMB2.9 billion
over the next 12 months, compared with RMB1.3 billion in 2022 and
RMB1.5 billion in 2021.
In addition, CAR's access to new sources of domestic funding has
improved dramatically over the past two years. Its unutilized
domestic financing has increased to RMB5.9 billion as of June 30,
2023 (including uncommitted credit facilities), from RMB3.8 billion
at the end of 2022. CAR's issuance of asset-backed-securities that
it plans to close in the near future will further aid liquidity.
Successful disposal of Borgward cars could further enhance CAR's
liquidity. The company still has 20,000 units of Borgward cars in
its fleet of over 126,000 cars. S&P estimates replacing these
Borgward cars could require RMB600 million-RMB700 million of
capital.
Successful sale of these cars could yield about RMB600 million.
S&P's are still uncertain about whether CAR can dispose of the
remaining Borgward cars considering the challenges. However, the
company has made good progress so far, selling over 14,000 Borgward
cars in the past 12 months.
CAR's liquidity will remain tight but manageable after the
redemption of senior notes. On Aug. 25, 2023, CAR announced it will
use its cash on hand to fully redeem its US$155 million outstanding
notes due on Sept. 27, 2023, six months before the original
maturity date of March 31, 2024. After the redemption, S&P
estimates the company will have a cash balance of about RMB1
billion.
Operating cash flow from the recovery in rental demand, together
with proceeds from the sale of used car, should cover CAR's cash
outlay of RMB1.3 billion-RMB1.4 billion for fleet renewal and
short-term maturities (excluding the amount of senior notes to be
redeemed) of RMB2.6 billion.
S&P said, "We believe CAR can adjust its pace of buying and selling
vehicles, should there be any change in business conditions.
Additionally, the company's lease arrangements--contributing the
majority of outstanding debt--are relatively evenly spread out over
the next two to three years. Such lease arrangements may also have
used car repurchase agreements, which could help provide some
certainty over lease repayments through used car sales.
"The positive outlook reflects our view that CAR can enhance its
liquidity over the next 12 months owing to steady business
prospects, further disposal of Borgward cars, and progress on
refinancing.
"We could revise the outlook to stable if CAR's operating
performance deteriorates materially from our base-case, or if the
company makes slow progress on refinancing or disposal of Borgward
cars.
"We could raise the rating if CAR can enhance its liquidity buffer
by securing suitable long-term financing and maintaining a healthy
rate of Borgward car disposal.
"Social factors are a neutral consideration for the credit rating
analysis on CAR. The disruptions caused by spread of infection and
reduced mobility as a result of sporadic COVID-19 outbreaks is
largely behind us, in our opinion. Demand for car rental in China
has recovered substantially in 2023 and even surpassed the
pre-COVID level.
"Governance factors are a negative consideration in our credit
rating analysis of CAR. Borgward cars, accounting for 16% of CAR's
rental fleet, could weigh on the company's liquidity. CAR will
eventually need to deploy additional capital to replace all the
Borgwards if they cannot be disposed in a timely fashion. These
cars, which are no longer in production, were purchased from
Borgward, a related party of CAR's previous shareholder UCAR Inc.,
between 2018 and 2019.
"Additionally, our assessment of the company's financial risk
profile as highly leveraged reflects corporate decision-making that
prioritizes the interests of MBK Partners, in line with our view of
most rated entities owned by private equity sponsors."
CHINA: Distressed Developers Soar in Wave of Speculative Buying
---------------------------------------------------------------
Bloomberg News reports that speculative bets that Chinese
authorities will widen support for the property sector sent some of
the country's ailing developers surging by the most on record.
A Bloomberg Intelligence gauge tracking Chinese builders gained
nearly 10% on Sept. 6, the most in more than a month. Heavily
indebted developers with depressed valuations were among those to
rally the most, with Sunac China Holdings Ltd. soaring 68%
alongside a spike in trading volume. China Evergrande Group closed
up 83% - capping the biggest gain since its 2009 listing.
Bloomberg says the sudden upturn comes after a rout in August, when
the property sector showed signs of deepening financial problems.
Authorities have been introducing bolder measures in recent weeks
to put a floor under the crisis, including lower down payments and
looser mortgage rules for some homebuyers. The latest boost came
from a Securities Times article, which went a step further to say
China should drop home-buying restrictions in most regions other
than top-tier cities.
"It's some hedge funds speculating on more stimulus," Bloomberg
quotes Xin-Yao Ng, investment manager of Asian equities at abrdn
Asia Ltd, as saying. "The distressed developers are definitely the
speculators' pick to bet on stimulus as they see the biggest delta
to policy news."
Bloomberg says the magnitude of the rally suggests some investors
see a glimmer of hope from the government's latest efforts, though
whether the measures will succeed in reviving the sector remains in
doubt.
The surge in home sales in Beijing and Shanghai over the weekend
shows sentiment improving, the report notes. Investors also took
note of looser restrictions in Shenyang, which was cited by the
Securities Times as an example that should be followed by other
cities. The capital of northeast China's Liaoning province has
removed home-purchasing curbs in its city center.
A record wave of developer defaults has pushed many of them to mere
penny stocks, whose shares trade at around - or below - one Hong
Kong dollar, Bloomberg notes. Such cheap valuation subjects them to
volatile moves on any potential catalysts. The property gauge now
trades at a price-to-book ratio of 0.3, compared with a
five-year-average of 0.47. Even with this week's gains, the index
remains more than 30% below this year's high in January.
Shares of Country Garden Holdings Co., once the country's largest
property developer, now trade at around HK$1.2 apiece, about 8% of
their peak level. Sept. 6's 21% jump, accompanied by a record
trading volume, only added around $750 million in value to the
battered company's market capitalization, Bloomberg discloses.
"If you ask me if this sector is worth buying - for investors, it's
a no. For speculators, it's a yes," Bloomberg quotes Kenny Wen,
head of Investment strategy at KGI Asia Ltd, as saying. "It's
likely that we see other property developers having new crisis
through the end of this year. China's property trouble is not
solved completely."
The rally may be driven by short squeeze of some heavily-shorted
names, according to Steven Leung, executive director at UOB Kay
Hian. The major gainers are mostly small- and medium-sized
developers which tend to have big swings, he said.
According to Bloomberg, some market watchers point to the rally's
speculative nature given that the gains have been concentrated in
ailing private developers with liquidity stress and weak
fundamentals. Shares of the country's stronger state builder China
Resources Land Ltd. closed in the red. The CSI 300 Materials Index
dropped 0.5%.
The broader equities market was muted, another evidence that
investors expect the sector's rebound to be fleeting. The CSI 300
benchmark of onshore shares was down 0.2%, while the Hang Seng
China Enterprises Index climbed 0.1%, Bloomberg discloses.
Chinese high-yield dollar bonds, mostly issued by developers, were
largely unchanged with little liquidity on Sept. 6, according to
credit traders. Country Garden's dollar bonds still trade at deeply
distressed levels around 9-14 cents on the dollar despite a recent
rebound, indicating investors remain on edge about the risk of an
eventual default, Bloomberg states.
Investor attention will likely turn next to any signs of recovery
in housing demand, according to Willer Chen, senior analyst at
Forsyth Barr Asia Ltd, Bloomberg relays.
"The high frequency sales data in the next two weeks is crucial for
investor judgment on whether the policy is helpful enough," Chen
said.
DALIAN WANDA: S&P Withdraws 'CCC' LongTerm Issuer Credit Rating
---------------------------------------------------------------
S&P Global Ratings withdrew its 'CCC' long-term issuer credit
rating on Dalian Wanda Commercial Management Group Co. Ltd. and the
'CCC-' long-term issuer credit rating on Wanda Commercial
Properties (Hong Kong) Co. Ltd. (Wanda HK) and the 'CCC-' long-term
issue credit rating on the senior unsecured notes Wanda HK
guarantees at the company's request. The ratings were on
CreditWatch with negative implications at the time of the
withdrawal.
VNET GROUP: Moody's Lowers CFR to Caa1, Outlook Remains Negative
----------------------------------------------------------------
Moody's Investors Service has downgraded the corporate family
rating of VNET Group, Inc. to Caa1 from B3.
The outlook remains negative.
"The rating downgrade and negative outlook reflect VNET's
heightened refinancing risk as the maturity of its $600 million
convertible bonds nears its puttable date in February 2024," says
Shawn Xiong, a Moody's Vice President and Senior Analyst.
"The rating action also considers the company's delays in executing
its refinancing plans amid a tight funding environment, which has
led to its weak liquidity to address its convertible bonds
repayment and other cash needs over the next 12-18 months. These
risks offset the positive impact from its steady internet data
center operations in China," adds Xiong.
RATINGS RATIONALE
VNET's Caa1 CFR reflects the company's weak liquidity, high debt
leverage and persistent negative free cash flow due to its high
investment needs to expand capacity. It also reflects Moody's
concern over the company's ability to execute its financial
management plan satisfactorily and well ahead of its major debt
maturity.
These constraints offset the company's solid position in China's
internet data center (IDC) market, its strategically located data
centers, operating track record featuring steady revenue growth,
diversified customer base and established partnerships with leading
cloud service providers.
Moody's expects VNET's revenue to grow around 10% over the next
12-18 months, driven primarily by the growth of new cabinets and
increasing utilization of its existing cabinets. The company's
revenue rose 14% in 2022 and 8% over the first half 2023,
respectively.
Moody's forecasts the company's adjusted EBITDA margin will remain
around 35% over the next 12-18 months. At the same time, the agency
projects that the company will incur additional debt to fund its
planned capital spending.
As a result, Moody's expects VNET's debt leverage, as measured by
Moody's-adjusted debt-to-EBITDA, to stay elevated at around 6.0x
over the next 12-18 months before gradually deleveraging as the
utilization of its new cabinets improves and the company's
investment gap narrows.
VNET's liquidity position is weak. It had an unrestricted cash
balance of RMB2.36 billion as of the end of June 2023, which
combined with its expected operating cash flow, will be
insufficient to cover its planned capital spending and upcoming
debt maturities, including $600 million (around RMB4.2 billion) of
convertible bonds, that will become puttable in February 2024.
ENVIRONMENTAL, SOCIAL, GOVERNANCE (ESG) CONSIDERATIONS
VNET's Credit Impact Score of CIS-5 is driven by governance risks.
The governance risks reflect its aggressive financial policy in the
context of business expansion amid its weak liquidity, its delays
in executing its refinancing plans amid a tight funding
environment, its sustained high financial leverage and its large
financing needs.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
Moody's could upgrade VNET's rating if the company demonstrates its
ability to refinance its upcoming maturity of $600 million
convertible bonds with a puttable date in February 2024, while
maintaining steady operations.
On the other hand, Moody's could downgrade VNET's rating if the
company is unable to service its debt maturities.
The principal methodology used in this rating was Communications
Infrastructure published in February 2022.
VNET Group, Inc. (VNET) began operations in 1999 and listed on the
NASDAQ in 2011. The company is headquartered in Beijing and is
China's largest carrier- and cloud-neutral IDC services provider,
operating in more than 30 cities. It also provides
interconnectivity services and complementary value-added services,
such as cloud services, virtual private network services and hybrid
IT services.
=========
I N D I A
=========
A. R. ENTERPRISES: CARE Keeps B- Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of A. R.
Enterprises (ARE) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 2.50 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 5, 2022,
placed the rating(s) of ARE under the 'issuer non-cooperating'
category as ARE 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. ARE continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
June 21, 2023, July 1, 2023, July 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).
A. R. Enterprises (ARE) was initially set up as a proprietorship
entity in 2003. However, it was reconstituted as a partnership firm
in April 2012 and currently it is managed by Mr. Rajesh Modi and
Ms. Neelu Modi. The firm is sole distributor of Jindal Steel &
Power Limited for its TMT bars (Jindal Panther TMT bar) for Korba,
Chhattisgarh. The firm is also the distributor of Ultratech Cement
Ltd. for its cement in Raipur, Chhattisgarh, Sika India Private Ltd
for its wall putty, polyurea, polyurethen and epoxy coatings, P.S.
Steel Tubes India Ltd for its pipes and tubes in Bhilai, Jindal
India Limited (Pipe Division) for its pipes and Berger Paint Indian
Limited for its paints.
ADORATEX: CRISIL Assigns B Rating to INR10cr Packing Loan
---------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B/Stable' rating to the
long-term bank facilities of Adoratex.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL B/Stable (Assigned)
Packing Credit 10 CRISIL B/Stable (Assigned)
Post Shipment Credit 9 CRISIL B/Stable (Assigned)
The rating reflects the firm's modest scale of operations amid
intense competition and large working capital requirement. These
weaknesses are partially offset by the extensive experience of the
proprietor in the home furnishings industry and the moderate
financial risk profile of the firm.
Key rating drivers and detailed description
Weaknesses
* Modest scale of operations amid intense competition: Intense
competition constrains scalability, as reflected in average
operating income of INR52 crore in fiscal 2023 (Rs 110 crore in
fiscal 2022), and operating profitability. Moreover, revenue is
concentrated in the US and Europe. Economic slowdown or change in
the trade policies of these markets may significantly impact the
business risk profile. Revenue will likely remain small and
geographically concentrated over the medium term.
* Large working capital requirement: Operations were working
capital intensive, as reflected in gross current assets (GCAs) of
around 730 days as on March 31, 2023, driven by sizeable
receivables and inventory of 180 days and 560 days, respectively
(244 days and 190 days, respectively, as on March 31, 2022).
However, receivables are fully secured by ECGC cover. Inventory
remains large owing to non-availability of raw materials during
summer and rainy seasons and various types of products. The working
capital cycle is partly supported by payables of 60-90 days.
Strengths
* Extensive experience of the proprietor: The proprietor, Mr Rizwan
Ansari, has a number of entities in carpet manufacturing in
Bhadohi, Uttar Pradesh. His family has been in a similar business
since 1971 through Sheikh Bhullan & Sons, a partnership firm, and
some other group entities. Mr Ansari has established relationships
with customers and suppliers in domestic and overseas markets. The
proprietor's extensive experience will continue to support the
business.
* Moderate financial risk profile: Networth was strong at INR75.19
crore as on March 31, 2023 (Rs 77.9 crore a year earlier). Capital
structure was healthy owing to limited reliance on external funds
yielding gearing of 0.38 time and total outside liabilities to
adjusted networth (TOLANW) ratio of 0.6 time as on March 31, 2023
(0.54 time and 0.95 time, respectively, a year earlier). Debt
protection metrics were comfortable, as reflected in interest
coverage ratio of 2.3 times in fiscal 2023 (expected at 2.5-3.0
times over the medium term).
Liquidity: Stretched
Bank limit utilisation was high at 86.1% for the 12 months through
June 2023. Cash accrual, expected at INR1-2 crore per annum, will
be insufficient to cover yearly term debt obligation of INR2-2.25
crore over the medium term. However, unutilised bank lines and
unsecured loans from the proprietor will help to meet debt
obligation.
Current ratio was healthy at 2.66 times as on March 31, 2023. Low
gearing and moderate networth support financial flexibility, which
will help to withstand adverse conditions or downturns in the
business.
Outlook: Stable
CRISIL Ratings believes Adoratex will continue to benefit from the
extensive experience of its proprietor and established
relationships with clients.
Rating sensitivity factors
Upward factors
* Increase in revenue by 25% and stable operating margin leading to
net cash accrual of more than INR2 crore
* Efficient working capital management
Downward factors
* Decline in revenue by 30% and fall in operating margin below 5%
leading to lower net cash accrual
* Further stretch in the working capital cycle weakening liquidity
and financial risk profile
Adoratex (formerly Rizwan Export House) was set up in 2000 as a
proprietorship by Mr Rizwan Ansari. The firm manufactures and
exports machine and handmade carpets, rugs and other home
furnishing products. Its units are in Bhadohi and Kashipur,
Uttarakhand.
ASHWANI GOYAL: CARE Keeps D Rating in Not Cooperating Category
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Ashwani
Goyal (AG) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.38 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 September 1,
2022, placed the rating(s) of AG under the 'issuer non-cooperating'
category as AG 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. AG continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
July 18, 2023, July 28, 2023, August 8, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
AG is a proprietorship firm established by Mr Ashwani Goyal in
2004. However, the firm commenced the development of 4 Star hotel
project in 2013 with total capacity of 75 rooms and other
facilities such as bar restaurant, banquet, gymnasium and health
zone.
AVADH COTTON: CARE Keeps B- Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Avadh
Cotton Industries (Jamnagar) (ACI) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.27 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated July 29, 2022,
placed the rating(s) of ACI under the 'issuer non-cooperating'
category as ACI 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. ACI continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
June 14, 2023, June 24, 2023, July 4, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Jamnagar (Gujarat) based ACI, a partnership firm, was constituted
in January 2014. The key partners of the firm are Mr. Bharat
Vaishnav, Mr. Rohit Sitapara, Mr.Parshotam Vaishnav, Mr.Rasik
Vaishnav and Mr. Jaydeep Sapovadia. The firm is engaged in the
cotton ginning and pressing of raw cotton.
BARODA RAYON: CRISIL Assigns B- Rating to INR75cr LT Loan
---------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B-/Stable' rating to the
bank facility of The Baroda Rayon Corporation Ltd (TBRCL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term
Bank Loan Facility 75 CRISIL B-/Stable (Assigned)
The rating reflects exposure to project risks, susceptibility to
cyclicality in the real estate sector and uncertainty on settlement
of unsecured loan and pending dues of employees. These weaknesses
are offset by the extensive entrepreneurial experience of the
promoters and their funding support
Key Rating Drivers & Detailed Description
Weaknesses:
* Exposure to projects risks: The company's entire operations of
the textile segment had come to a standstill since August 2008. In
the interest of revival of the company, continuous efforts were
taken by the management to settle the dues of banks and settlement
of employee's dues.
Now, the company has converted capital asset, land, to stock in
trade, revalued around INR604 core in the past two years. It will
construct 380 industrial houses in the first phase, out of a total
of 1,030 units, along with sale of 503 open plot units under Phase
IV. In the real estate segment, operating performance will remain
susceptible to timely completion of projects and customer advances.
Funding risk is high as the company is yet to avail sanction for
this project. Also, it will face intense competition from other
players in the segment. Timely completion of the project and
successful stabilisation of operations at the new unit will remain
key rating sensitivity factors.
Also, the company is planning to relocate and commence
manufacturing of viscose filament yarn with 15,000 MTPA capacity in
Dahej, Gujarat.
* Exposure to cyclicality inherent in the real estate sector:
Cyclicality in the domestic real estate sector leads to
fluctuations in cash inflow because of volatility in saleability
and realisation, while outflow such as construction cost and debt
obligation remain fixed. Lower demand could result in modest
collection and cash flow.
* Uncertainty on settlement of unsecured loan and dues of employees
and statutory authorities: The company had unsecured loan of
INR197.76 crore as on March 31, 2023, from investors, on which
interest is not being paid and no provision has been made in the
books. Furthermore, the company has to pay dues of employees and
statutory dues to government authorities of INR27.64 crore and
INR14.62 crore, respectively. Timely settlement of all dues will
remain a key monitorable.
Strength:
* Longstanding presence of the promoters and their funding support:
The extensive diversified entrepreneurial experience of the
promoters has helped them develop healthy relationships with
suppliers and customers. Income from sale of scrap of plant and
machinery will support liquidity.
Liquidity: Stretched
Liquidity will remain stretched over the medium term for funding
the construction of ongoing and upcoming projects. The projects
will be funded through a mix of customer advances, unsecured loans
and bank loans. Customer advances for its ongoing projects were
modest.
Although the cash flow from real estate projects will be sufficient
to cover term debt obligation, unforeseen delay in project
construction might result in cost overrun. Further, any delay in
customer advances will impact the liquidity and hence will be a key
monitorable.
Current ratio was healthy at 2.55 times as on March 31, 2023.
Outlook: Stable
CRISIL Ratings believes TBRCL will continue to benefit from the
extensive experience of its promoters and established relationships
with clients.
Rating Sensitivity factors
Upward factors:
* Timely completion of project and improvement in cash buffer ratio
to 1.50 times
* Repayment of dues of employees and statutory authorities
Downward factors:
* Considerable delay in commencement of operations leading to
decline in cash buffer ratio to less than 1.0 time
* Delay in repayment of dues relating to employees and statutory
authorities
* Cash accrual below INR10 crore owing to lower-than-expected
bookings during initial operations of Phase I
Incorporated in 1958, TBRCL started commercial production of
viscose filament yarn in 1962. However, since August 2008,
operations of the textile segment had come to a standstill; also,
listing of the company's equity shares on the Bombay Stock Exchange
(BSE) were suspended from 2002.
The suspension was revoked from BSE as on May 30, 2022. Now, the
management of the company has planned to develop industrial units
on its land at Udhna in Surat. It will construct 121 industrial
units in the first phase out of 380 units, and it is planning to
relocate and commence manufacturing of viscose filament yarn, a
green field project with 15,000 MTPA capacity, as well as a 12-MW
captive power plant at Dahej.
Mr Damodarbhai Patel is the Chairman and Managing Director. The
company is promoted by Mr Damodarbhai B Patel, Ms Vidhya Bhavani
and Mr Viral Bhavani.
BKM INDUSTRIES: CARE Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of BKM
Industries Limited continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 80.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 28.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated June 9, 2022,
placed the rating(s) of BKM under the 'issuer non-cooperating'
category as BKM 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. BKM continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and email dated August 17,
2023; May 5, 2023, and April 25, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings take into account the continuation of delays in
repayment of its bank facilities and non-cooperation from BKM.
Analytical approach: Standalone
Outlook: Not Applicable.
Detailed description of the key rating drivers:
At the time of last rating on June 9, 2022, the following were the
rating strengths and weaknesses.
Key Rating Weaknesses
* Ongoing delays in the account: There have been instances of LC
devolvement and the cash credit account remained overdrawn for a
period of more than 30 days. This liquidity mismatch is primarily
due to delay in collection from the debtors and decline in the
revenue in FY19 due to weak demand scenario. As per the audit
report (FY20) of BKM, the company's loan accounts in the banks and
other financial institutions have got NPA due to overdue of
interest and principal amounting to INR105.03 crore.
* Deterioration in financial performance of the company in Q1FY19
marked by cash losses: BKM's operating income declined by 58.32%
from previous quarter to INR17.30 crore in Q1FY19 (as against
INR45.05 crore in FY18) on the back of lower execution of orders.
This coupled with under absorption of fixed cost and execution of
less margin products lead to operational losses in Q1FY19. Further,
higher interest expenses resulted in cash losses during the said
quarter. This apart in July 2018, the company had also decided to
discontinue its manufacturing operations at the Barjora (Bankura,
West Bengal) and resultantly reported loss of INR-0.57 crore in
Q1FY19. During 9MFY19, BKM reported cash loss of INR22.15 crore on
a total operating income of INR34.64 crores. BKM's operating income
declined y-o-y by 73.54% from INR156.9crore in FY18 to
INR41.51crore in FY19. BKM reported loss at PAT level of
INR56.42crore in FY19. The overall gearing ratio deteriorated from
0.81x as on March 31, 2018 to 2.37x as on March 31, 2019. In FY20,
the total operating income of BKM has further declined to INR7.21
crore. BKM reported loss of INR28.60 crore at the PAT level. The
overall gearing ratio has also further deteriorated to 5.15x as on
March 31, 2020.
BKM Industries Ltd (BKM) was incorporated on March 25, 2011. It was
a dormant company till October 1, 2013 before the demerger of
packaging division of Manaksia Ltd (ML) to BKM. BKM manufactures
packaging products and aluminum semi-rigid containers. Major
packaging products manufactured by the company includes (1) Roll on
Pilfer Proof closures for the premium liquor and pharmaceutical
sector, (2) Crown closures for carbonated soft drinks and beer, (3)
Plastic closures for carbonated soft drinks and mineral water
sectors, and (4) Metal containers for shoe polishes, cosmetics and
tea.
BOSTIN ENGINEERS: CRISIL Cuts Rating on Long/Short Term Loan to D
-----------------------------------------------------------------
CRISIL Ratings has downgraded its ratings on the bank facilities of
Bostin Engineers Private Limited (BEPL) to 'CRISIL D/CRISIL D' from
'CRISIL B-/Stable/CRISIL A4'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Rating - CRISIL D (Downgraded from
'CRISIL B-/Stable')
Short Term Rating - CRISIL D (Downgraded from
'CRISIL A4')
The rating is driven by instances of delays in servicing of term
loan obligations during the period of May-July 2023 due to stretch
in receivables.
The ratings continue to reflect BEPL's delays in servicing debt
obligation, exposure to the project execution timelines of clients,
modest scale of operations amid intense competition, large working
capital requirement, and weak financial risk profile. These
weaknesses are partially offset by the extensive experience of the
promoters.
Key Rating Drivers & Detailed Description
Weakness:
* Delays in servicing debt obligation: There have been
irregularities in debt servicing (interest payment) during May'23
to July'23.
* Susceptibility to Project Execution Timelines of Clients:
Installation and commissioning of boiler parts occur at a later
stage of setting up a manufacturing facility, which exposes BEPL to
uncertainty in revenue as erection and commissioning work may get
delayed due to micro and macroeconomic factors, thereby stunting
any opportunities of any significant jump in the revenue.
* Modest scale of operations amid intense competition: The boiler
industry has several small units to execute medium-sized projects.
The consequent intense competition may continue to constrain
scalability, pricing power, and profitability.
* Large working capital requirement: The working capital cycle may
remain stretched over the medium term; hence, its management will
be closely monitored. Gross current assets (GCAs) were high at
around 516 days as on March 31, 2023, driven by stretched
receivables and sizeable inventory (mostly work-in-progress) of
around 130 days and 368 days, respectively. Inventory is large as
fabrication process is long and varies from order to order due to
complexity of design and materials to be used. Receivables and
inventory days are likely to go down with increasing negotiation
power of the promoters with its principals.
* Weak financial risk profile: Financial risk profile may continue
to be constrained by small net worth position along with high
gearing positions.
Strength:
* Extensive experience of the promoters: The promoters' experience
of over two decades, their strong understanding of local market
dynamics, and healthy relations with customers and suppliers should
continue to support the business.
Liquidity: Poor
Liquidity is poor as reflected in irregularities in debt servicing
by the company during May'23 to Jul'23. Liquidity is remains weak
owing to large working capital debt. Bank limit utilization has
been high and averaged around 100% for the 12 months through March
2023. Current ratio remains at 1.21 times as on March 31, 2023.
Rating Sensitivity factors
Upward factors
* Timely servicing of term debt obligation for more than 90 days
* Revenue rising to more than INR15 crore in medium term, with
operating margins exceeding 16.5%
* Improved working capital management with reduction of GCA days to
around 200 days.
BEPL, incorporated in 1990, is a Howrah (West Bengal)-based company
that manufactures and installs pressure boilers, boiler parts, heat
exchangers, steam pipelines, pressure vessels, and pipe fittings
for players in the power industry; it also installs process
equipment at customer's site. Mr. Dilip Bose and Mr. Deepak Bose
are the main promoters individually having more than 2 decades of
operational experience in the fittings and engineering industry.
CHEMROW INDIA: CARE Keeps B- Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Chemrow
India Private Limited (CIPL) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 28.50 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated August 30,
2022, placed the rating(s) of CIPL under the 'issuer
non-cooperating' category as CIPL 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. CIPL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated July 16, 2023, July 26, 2023, August 5, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Delhi based Chemrow India Private Limited (CIPL), is a private
limited company, incorporated on November 4, 1997. The company was
promoted by Mr. Surender Sharma and Mr. Manish Sharma. Currently
the business is managed by Mr. Manish Sharma and Mr. Ashish Sharma.
The company is primarily engaged in trading of polymers and
chemicals like EVA, PVC, Resin, Melamine etc. The main customers of
the company are manufacturers of footwear and the company mainly
operates in the region of Delhi and Uttar Pradesh.
GENESYS BIOLOGICS: CRISIL Lowers Rating on INR5.5cr Loan to C
-------------------------------------------------------------
CRISIL Ratings has downgraded its rating on the bank loan
facilities of Genesys Biologics Private Limited (GBPL) to 'CRISIL
C' from 'CRISIL B-/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2 CRISIL C (Downgraded from
'CRISIL B-/Stable')
Cash Credit 5.5 CRISIL C (Downgraded from
'CRISIL B-/Stable')
Cash Credit 3.5 CRISIL C (Downgraded from
'CRISIL B-/Stable')
Proposed Long Term
Bank Loan Facility 0.5 CRISIL C (Downgraded from
'CRISIL B-/Stable')
Term Loan 36 CRISIL C (Downgraded from
'CRISIL B-/Stable')
Term Loan 12 CRISIL C (Downgraded from
'CRISIL B-/Stable')
Term Loan 10.5 CRISIL C (Downgraded from
'CRISIL B-/Stable')
The downgrade reflects deteriorated performance of the company on
year-on-year basis from Rs. 33.66 crores in fiscal 2022 to revenue
of Rs. 2.48 crores in fiscal 2023 with operational losses over the
years along with negative net worth of around Rs. 11.24 crore and
in fiscal 23.
The rating continues to reflect the risks associated with
stabilization of operations post commercialization of existing
facilities, project risk related to the proposed manufacturing
facility and regulatory uncertainties in connection with the
biopharmaceutical market. These weaknesses are partially offset by
the benefits derived from the extensive experience of the promoters
and their funding support, strategic partnership with CIVICA, and
the strong growth prospects in the biosimilars industry for players
with proven track record in research and development (R&D).
Key Rating Drivers & Detailed Description
Weaknesses:
* Exposure to risks associated with stabilization of operations:
Commencement of operations at the company's biosimilar plant has
been significantly delayed. Operations were expected to commence in
fiscal 2019 but were initially delayed owing to the introduction
and subsequent changes in the biosimilars regulatory regime and was
further deferred due to Covid-19 induced disruptions. The
commercialization of existing facilities is expected in fiscal 2023
and stabilisation of operations would remain a key rating
sensitivity factor. Further, since the proposed facility with
enhanced capacity is at a nascent stage, there is project
implementation risk involving scale-up of technology, which is
partially offset by the experience and expertise of the promoters.
* Project risk related to the proposed facility: The company is in
the process of setting up a new manufacturing facility over the
next 18-24 months. The project is still in the design stage and its
timely completion is critical. Though capital assistance from
CIVICA has commenced, the proposed bank debt of around INR140 crore
is yet to be tied-up. Further, the company is receiving loan from
DFC(U.S International Development Finance Corporation) of Rs. 413
crore and promoter contribution of around INR35 crore must be
supported either by accruals from existing business or fund
infusion. Hence the overall project risk is significant. Fund
infusion can be achieved through milestone revenues from other
major territories such as the European Union, Middle East and North
Africa, Latin America, and other emerging markets.
* Susceptibility to regulatory uncertainties: GBPL is exposed to
regulatory changes in both Indian and international
biopharmaceutical markets. A product line can be disqualified in
case of any non-compliance or quality issues, thereby affecting
scale-up in operations, profitability and cash flows.
Strengths:
* Experience and funding support of the promoters: Benefits from
the decade-long experience of the promoters in the biotech industry
and healthy relationships with key prospective customers and
suppliers should support the business. Need-based funding support
from the promoters is expected to continue.
* Biosimilars industry growth prospects: The growing biosimilars
market offers huge potential for companies with a proven track
record in R&D. GBPL is fully integrated and equipped to develop
insulin biosimilars end-to-end. Insulin biosimilars have adequate
demand globally and positioning as an economical substitute
especially in the regulated markets is a viable proposition.
* Strategic partnership with CIVICA: The company has entered into a
co-development and commercial agreement with CIVICA, a US-based
not-for-profit generic drug company, for the sale of three insulins
biosimilars – Glargine, Aspart and Lispro in the US market at
equal-profit sharing. GBPL will be paid USD 30 million for granting
exclusivity for the US market, of which the milestone payment of
USD 4.5 million has already been received. Further, CIVICA will
provide capital assistance of USD 22 million for the commissioning
of the proposed facility, of which USD 12 million has been
received. This fund is repayable out of the company's profit-share
from the US market post the expected launch in fiscal 2025.
Additionally, CIVICA will incur all regulatory costs of around USD
8 million for securing US Food and Drug Administration approval for
the three products and will bear insulin pen development cost for
securing committed supplies from pen manufacturer estimated at USD
5 million, as per the agreement. Association with CIVICA is
expected to support the business and financial risk profiles;
however, timely achievement of upcoming milestone and receipt of
funds are monitorable.
Liquidity: Poor
Liquidity is constrained because of the nascent stage of operations
resulting in modest net cash accrual, which is insufficient to meet
maturing debt. However, with the milestone payment of from CIVICA,
liquidity position has improved marked by the reduction in bank
limit utilisation to below 36% for 12 months ending July 2023.
Current ratio was healthy at 2.95 times on March 31, 2023. Cash and
bank balance was high at INR68.46 crore as on March 31, 2023, which
includes capital assistance towards the proposed facility received
from CIVICA.
Rating Sensitivity factors
Upward factors:
* Stabilization of operations post commercialization of existing
facilities, resulting in a topline of more than INR50 crore.
* Improvement in the financial risk profile, particularly
liquidity, supported by the timely receipts of milestone payments
from CIVICA.
* Scheduled project implementation and timely commercialization of
products.
Downward factors:
* Net cash accrual of less than INR7 crore on account of decline in
revenue or operating profit.
* Further stretch in liquidity leading to delays in debt-servicing
* Delays in stabilization of operations and/or any significant
postponement in the implementation of the proposed project
Incorporated in November 2014 in Hyderabad and promoted by Mr.
Rajender Rao, Mr. Venkat Reddy, Mr. Krishna Rao, and Mr. Tulasi
Ramu, GBPL is a clinical stage biotechnology company engaged in R&D
of insulin biosimilars. It also manufactures drug substances and
products.
GULF PETROCHEM: CRISIL Withdraws D Rating on INR76.86cr Term Loan
-----------------------------------------------------------------
CRISIL Ratings has reaffirmed its rating on the bank loan
facilities of Gulf Petrochem India Private Limited (GPIPL) and
subsequently withdrawn the ratings at the company's request and on
receipt of no-objection certificate/no due certificate from the
lenders. The withdrawal is in line with CRISIL Ratings' policy on
withdrawal of bank loan ratings.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 6.8 CRISIL D (Rating Reaffirmed
and Withdrawn)
Term Loan 3.81 CRISIL D (Rating Reaffirmed
and Withdrawn)
Term Loan 76.86 CRISIL D (Rating Reaffirmed
and Withdrawn)
The rating reflects past delays in debt servicing owing to weak
liquidity and financial risk profile. These weaknesses are
partially offset by the modern infrastructure and locational
advantages of the company's operations.
Key Rating Drivers & Detailed Description
Weakness:
* Delays in servicing of debt: The Company has delayed the
servicing of its term debt obligations in the past.
* Weak financial risk profile: Debt protection metrics were weak,
indicated by interest coverage and net cash accrual to total debt
ratios of 1.5 time and 0.06 time, respectively, in fiscal 2022
because of low accrual and high debt. The metrics are expected to
remain weak over the medium term.
Strength:
* Modern infrastructure and locational advantage: The company is
owned by the GP Global group, which has significant experience in
running and operating terminal operations all over the world. The
terminal is located in the Pipavav port in Gujarat, which is a
commercial hub.
Liquidity: Poor
Liquidity is poor as reflected in past delays in servicing of term
debt instalments.
Rating Sensitivity factors
Upward factors
* Evident track record of timely debt servicing for 90 days or
more
* Improvement in the financial risk profile, driven by increase in
accrual leading to interest cover of over 1 time on a sustained
basis
GPIPL was incorporated by GPFZC as its wholly owned subsidiary in
2011. GPIPL started commercial operations of its 250,000-kilolitre
capacity at the Pipavav port in October 2015; this will be used for
storage and distribution of bulk petroleum, oil and lube liquids.
The primary business is leasing of storage tanks to third parties.
HOTEL MEGHNA: CARE Lowers Rating on INR11.96cr LT Loan to B-
------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Hotel Meghna (HM), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 11.96 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated August 1, 2022,
placed the rating(s) of HM under the 'issuer non-cooperating'
category as HM 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. HM continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
June 17, 2023, June 27, 2023, July 8, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of HM have been revised
on account of non-availability of requisite information.
HM was formed as a proprietorship concern in year 2012 by Mr. Itesh
Bordoloi. The hotel started commercial operations from March 2017.
It is a four-star hotel located at Chapanguri, Assam with a total
built-up area of 7200 sq.mt. The firm has a tie-up with "Cygnett
Hotels and Resorts". The hotel is currently operating with 50 rooms
(which include 42 superior rooms, 6 club rooms and 2 suit rooms).
The hotel also has other amenities like conference and banquet
hall, multicuisine restaurant, bar, health club, spa, saloon and a
swimming pool.
IRAA CLOTHING: CRISIL Cuts Rating on Long/Short Term Loan to D
--------------------------------------------------------------
CRISIL Ratings has downgraded its rating on the bank facilities of
IRAA Clothing Private Limited (IRAA) 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 IRAA for
obtaining information through letters and emails dated June 16,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
Earlier, the entity did not provide the No Default Statements (NDS)
for the three consecutive months. Therefore, the issuer was
classified as 'non cooperative' in line with Clause 11. 3 of SEBI
CRA Operational Circular dated January 06, 2023
'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 IRAA, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on IRAA
is consistent with 'Assessing Information Adequacy Risk'.
Incorporated in 2005 as Shagun Clothing Pvt Ltd, the company was
renamed IRAA Clothing Pvt. Ltd on May 5, 2016. The unit, located in
Maharashtra, processes denim garments from fabric. Mr Sunil Biyani
and family manage operations.
JAY AGRO: CARE Keeps D Debt Rating in Not Cooperating Category
--------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Jay Agro
Industries (JAI) continue to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 16.51 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 28, 2022,
placed the rating(s) of JAI under the 'issuer non-cooperating'
category as JAI 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. JAI continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
June 13, 2023, June 23, 2023, July 3, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Vadodara-based (Gujarat) JAI was promoted by Mr Nimmagadda Prasad
and Ms. Aruna Prasad for manufacturing of Pesticides in 2003. JAI's
manufacturing plant is located in Vadodara, Gujarat having for
production of Agrochemicals, Pesticides and Insecticides. JAI is an
ISO 9001: 2008 and UKAS Quality Management certified firm.
JAYAMALAR SPINNING: CRISIL Lowers Rating on INR8cr Cash Loan to D
-----------------------------------------------------------------
CRISIL Ratings has downgraded the rating on bank facilities of Sri
Jayamalar Spinning Mills Private Limited (SJSMPL) to 'CRISIL D
Issuer Not Cooperating' from 'CRISIL C Issuer Not Cooperating' due
to delays in servicing of debt obligation.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL C ISSUER NOT
COOPERATING)
Long Term Loan 1.5 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL C ISSUER NOT
COOPERATING)
Proposed Long Term 1.5 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING; Downgraded from
'CRISIL C ISSUER NOT
COOPERATING)
CRISIL Ratings has been consistently following up with SJSMPL for
obtaining information through letters and emails dated October 21,
2022, December 30, 2022 and December 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 ,SJSMPL which restricts CRISIL
Ratings ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
SJSMPL is consistent with Assessing Information Adequacy Risk.
Based on the last available information, CRISIL Ratings has
downgraded the rating on bank facilities of SJSMPL to 'CRISIL D
Issuer Not Cooperating' from 'CRISIL C Issuer Not Cooperating' due
to delays in servicing of debt obligation.
SJSMPL was incorporated in 2004 by Mr. Krishnaswamy and his wife
Mrs. K. Rathinam. The company is engaged in manufacture of cotton
yarn.
Status of non cooperation with previous CRA:
SJSMPL has not cooperated with Acuite Ratings and Research Limit
(Acuite), which led to its classification as 'issuer not
cooperative' vide release dated February 15, 2017. The reason
provided by Acuite is non-furnishing of information for monitoring
of ratings.
M. H. KHANUSIYA: CARE Keeps B- Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of M. H.
Khanusiya (MHK) continue to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 11.26 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 20.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated July 29, 2022,
placed the rating(s) of MHK under the 'issuer non-cooperating'
category as MHK 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. MHK continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
June 14, 2023, June 24, 2023, July 4, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of MHK have been
revised on account of non-availability of requisite information.
MHK, originally promoted by Mr. Murtajbhai Khanusiya, aged 52
years, as a proprietorship concern in April 1995 has been converted
into partnership firm with introduction of his son Mr. Izaz
Khanusiya as partner. MHK is 'A' class contractor engaged in
general civil engineering works mainly performing earthwork and
structural work for railways (Railway Bridge, railway stations and
platforms, coach yard and related fabrication work). It also
performs structural work for canals as assigned by Irrigation and
Agriculture Department of Gujarat.
MAISON DE COUTURE: CARE Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Maison De
Couture Fabrics Private Limited (MDCFPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 40.52 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 24, 2022,
placed the rating(s) of MDCFPL under the 'issuer non-cooperating'
category as MDCFPL 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. MDCFPL continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a
letter/email dated May 10, 2023, May 20, 2023, May 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).
Analytical approach: Combined
A combined view is considered for 'Oneworld Group' companies which
includes Oneworld Creation Private Limited (OCPL), Oneworld
Industries Private Limited (OIPL), Oneworld Retail Private Limited
(ORPL), Oneworld Sourcing (OS), Tissori India Fabrics Private
Limited (TIFPL), Maison De Couture Private Limited (MDC), Zephyr
Fabric Trading LLP (ZFT), Worsted Overseas Trading LLP (WOT),
WorldStar Fabric LLP (WF), Ultimo Fabrics Private Limited (UFPL)
and Oneworld Design Studios Private Limited (ODS). The combined
view for the group is on account of strong operational and
managerial linkages being in the same line of business and common
promoters.
Outlook: Not Applicable
Established in the year 1995 by Mr. Urvil Jani and Mr. Manoj
Khushalani, the group began its business under a partnership firm
"Roshvil Enterprise". The firm was engaged in the business of
trading of fabrics in bulk quantities for men's wear. Subsequently,
the product profile was diversified by the firm to cater to women's
wear and readymade garments. Owing to increase in the scale of
operation over the years, the group was re-christened as Oneworld
group and the business carried under the partnership firm was
transferred to a private limited company incorporated in the year
2012 viz Oneworld Industries Private Limited. Consequently, many
other companies were incorporated to carry on trading of various
textile products. Currently, the group is engaged in the business
of trading in fabric materials and readymade garments (manufactured
on job work basis). Maison De Couture Fabrics Private Limited was
incorporated on August 10, 2015 to establish and undertake business
of trading of shirting fabrics in India under the brand name
'Tissori' on stock and sales basis.
MEHSANA DAIRY: CRISIL Reaffirms D Rating on INR22cr Cash Loan
-------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL D/CRISIL D' ratings on
the bank loan facilities of Mehsana Dairy and Food Products Ltd
(MDFPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1 CRISIL D (Reaffirmed)
Cash Credit 22 CRISIL D (Reaffirmed)
Proposed Working
Capital Facility 14.25 CRISIL D (Reaffirmed)
Term Loan 6 CRISIL D (Reaffirmed)
Term Loan 10 CRISIL D (Reaffirmed)
The ratings continue to reflect the delays by MDFPL in meeting
repayment obligation from June 2023 to August 2023 and high
utilisation of the cash credit facility.
The ratings also factor in large working capital requirement and
weak financial risk profile. These weaknesses are partially offset
by the extensive experience of the promoters in the dairy products
industry.
Analytical Approach
Unsecured loans (Rs 8.33 crore as on March 31, 2023) extended by
the promoters have been treated as neither debt nor equity since
these loans are expected to remain in the business over the medium
term and carry lower-than-market interest rates.
Key Rating Drivers & Detailed Description
Weaknesses:
* Large working capital requirement: Gross current assets were 106
days as on March 31, 2023 (against 77 days a year ago), driven by
inventory of 89 days and receivables of 20 days. Large working
capital requirement led to high bank limit utilisation. Improvement
in the working capital cycle and bank limit utilisation will remain
key rating sensitivity factors.
* Weak financial risk profile: Financial risk profile remains
constrained by the large, debt-funded capital expenditure. Total
outside liabilities to adjusted networth ratio was high at 3.17
times as on March 31, 2023, and networth low at INR22.06 crore.
Debt protection metrics were modest, with interest coverage ratio
of 2.87 times and net cash accrual to adjusted debt ratio of 0.16
time in fiscal 2023.
Strength:
* Extensive experience of the promoters: The promoters have more
than two decades of experience in the dairy products industry;
their strong understanding of market dynamics and healthy
relationships with suppliers and customers should continue to
support the business. The milk procurement network is well
established through a group concern.
Liquidity: Poor
Bank limit utilization was high at 98.6% for the 12 months through
July 2023. Cash accruals are expected to be insufficient to meet
term debt obligation over the medium term. Current ratio was weak
at 0.7 time as on March 31, 2023. Repayment obligation from June
2023 to August 2023 has been delayed.
Rating Sensitivity factors
Upward factors:
* Track record of timely debt servicing for at least over 90 days
* Higher-than-expected cash accrual
MDFPL, incorporated in 2015 and promoted by Mr. Bahubhai Patel, Mr.
Rajnikant Patel & Mr. M M Bhatt Mehsana (Gujarat)-based. MDFPL
manufactures skimmed milk powder, ice cream, and other dairy
products. It began operations in November 2017.manufactures skimmed
milk powder, ice cream and other dairy products at its facility in
Mehsana, Gujarat.
MOHIT ISPAT: CARE Keeps B+ Debt Ratings in Not Cooperating
----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Mohit
Ispat Private Limited (MIPL) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 34.04 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Long Term/Short 5.00 CARE B+; Stable/CARE A4;
Term Bank ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 30.00 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 29,
2022, placed the rating(s) of MIPL under the 'issuer
non-cooperating' category as MIPL 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. MIPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated July 15, 2023, July 25, 2023, August 4, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE 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).
Mohit Ispat Private Limited (MIPL) was formed as a public limited
company in 1997 by Mr. Harsh Vardhan Mittal under the name of Mohit
Ispat Ltd. In July 2019, the company's constitution was changed to
Private Limited and hence the name was changed to MIPL. The company
is in the business of manufacturing of Thermo-Mechanical Treated
(TMT) bars in Goa.
MOVENPICK HOTELS: Voluntary Liquidation Process Case Summary
------------------------------------------------------------
Debtor: Movenick Hotels and Resorts Management (India) Private
Limited
4th FLoor, Kaveri Tower, 211 Pocket-6, Sector-D,
Vasant Kunj New Delhi 110070
Liquidation Commencement Date: August 1, 2023
Court: National Company Law Tribunal New Delhi- Bench
Liquidator: Mr. Ashok Kumar Verna
13-B, 2nd Floor, Above Central Bank Of India,
Netaji Subash Marg, Daryaganj,
New Delhi-110002
Email: ashokvermafcs@yahoo.com
Last date for
submission of claims: August 30, 2023
NEELAM DYEING: CARE Lowers Rating on INR8cr LT Loan to D
--------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Neelam Dyeing and Printing House Private Limited (NDPHPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE B-; Stable
Rationale and Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated August 30,
2022, placed the rating(s) of NDPHPL under the 'issuer
non-cooperating' category as NDPHPL 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. NDPHPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated July 16, 2023, July 26, 2023,
August 05, 2023 and August 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).
The rating for NDPHPL have been revised on account of
non-availability of requisite information. The rating revision also
considers the ongoing delays in debt servicing as recognised from
publicly available information i.e., CIBIL filings.
Neelam Dyeing and printing house private limited (NDPHPL) was
incorporated in the year 2014 by Mr. Sandeep Singh and Ms. Neha and
it is engaged in processing of fabric on job work basis and its
full operation is expected to start from June 2018.
NOOR INDIA: CARE Keeps D Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Noor India
Buildcon Private Limited (NIBPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated July 27, 2022,
placed the rating(s) of NIBPL under the 'issuer non-cooperating'
category as NIBPL 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. NIBPL 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 02, 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).
Vapi-based NIBPL, was incorporated by Mr. Amin Yasid Saiyed in the
year 2006. NIBPL is registered as a 'Class AA' contractor (highest
on a scale of AA to E2), certified by Public Work Department of
Gujarat. The company is in the business of undertaking turnkey
projects involving civil works, erection, commissioning and
electrical works of industrial buildings.
POWER ENGINEERING: CRISIL Reaffirms C Rating on INR9cr Cash Loan
----------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL C/CRISIL A4' ratings on
the bank facilities of Power Engineering India Private Limited
(PEIPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 6 CRISIL A4 (Reaffirmed)
Cash Credit 9 CRISIL C (Reaffirmed)
Letter of Credit 8 CRISIL A4 (Reaffirmed)
Packing Credit 11 CRISIL A4 (Reaffirmed)
Term Loan 4 CRISIL C (Reaffirmed)
Term Loan 2 CRISIL C (Reaffirmed)
The rating continues to reflect large working capital requirements
and weak capital structure along with modest financial risk
profile. These weaknesses are partially offset by the extensive
experience of the promoters in the diesel and gas-based generators
business and geographical diversification in revenue.
Key Rating Drivers & Detailed Description
Weaknesses:
* Working capital intensive operations: The operations of the
company are marked with large working capital requirements, driven
by gross current assets [GCA] days ranging between 190-326 days
historically, GCA days as on March 31, 2023, have been 190 days
driven by debtor days of 66 days and inventory days of 81 days, As
the company has focused to keep order backed inventory, the GCA
days would remain in range of 200-225 days over medium term.
* Weak capital structure along with modest financial risk profile:
Financial risk profile is marked by adjusted net worth of INR11.62
crores as on March 31, 2023, which has improved from INR-5.18 crore
as on March 31, 2022, as the promoters have infused funds into the
business and the profits earned by the company have been retained.
Total outside liabilities to adjusted networth ratio and gearing is
5.76 times and 2.60 times, respectively, as on March 31, 2023. Debt
protection metrics continue to remain moderate, as reflected by the
interest coverage and net cash accrual to adjusted debt ratios of
2.13 times and 0.24 time, respectively, in fiscal 2023.
Strengths:
* Extensive industry experience of the promoters and strong
clientele: The promoters have experience of more than three decades
in the generator business. The company is dealing with large and
reputed clients including players in the government sector. It
caters to customers in various sectors such as banking and
insurance, corporate, construction, telecommunication, retail and
logistics.
In 2019, the company started focusing on execution of complete
projects (control panels, transformers, substation assembly and
cabling), apart from sale of gensets. The benefits of this change
in operations could be seen in fiscal 2022, wherein the company
booked operating income of ~Rs 87 crore against ~Rs 51.16 crore in
fiscal 2020. In fiscal 2023, the revenues have improved to over
INR101.8 crore. Operating margin was 6.87% in fiscal 2022 as
against operating loss in fiscal 2021. Further, the margins were
sustained at around 6.8% in fiscal 2023 and operating profits have
improved by around 15%. Also, the company has taken steps to reduce
operating expenses, as a result of which the operating margin is
likely to be better over the medium term.
* Geographical diversification in revenue: PEIPL caters to a large
number of clients, both in India and overseas. It has marketing
offices in Mumbai and Sheffield (United Kingdom), and has a
diversified product profile of diesel, natural and biogas generator
sets, switch boards, compact substations and acoustic enclosures.
Diversity in geographic reach and clientele should continue to
support the business.
Liquidity: Poor
Bank limit utilisation is high at around 95.4 percent for the past
twelve months ended July 2023. Current ratio is moderate at 1.02
times on March 31, 2023, and cash accruals are expected to be over
INR5.4-6.5 crores which are sufficient against term debt obligation
of INR1-1.6 crores over the medium term. However, any delay in
collection of receivables or elongation in working capital cycle
can strain liquidity. Moderate cash and bank balance of around
INR1.92 crores as on March 31, 2023, is largely encumbered. The
promoters are likely to extend support in the form of equity and
unsecured loans to meet its working capital requirements and
repayment obligations. Maintenance of sufficient liquidity will
remain a key monitorable.
Rating Sensitivity factors
Upward factors:
* Sustained improvement in scale of operations, along with
sustained improvement in operating margin beyond 6-6.5%, leading to
higher-than-expected cash accruals
* Timely servicing of debt obligations without any instances of
delinquencies
* Improvement in the financial risk profile, with improved networth
backed by steady accretion of reserves
Downward factors:
* Stretch in liquidity leading to delay in servicing of debt
* Sustained decline in scale of operations, along with sustained
decline in operating margins below 5%, leading to
lower-than-expected cash accruals
* Increase in working capital requirements along with decline in
capital structure, leading to decline in financial risk profile of
the company
PEIPL was incorporated in 1996 by Mr Atul Pai Kane. The company
manufactures diesel and gas-based generators. Its products include
diesel generator sets of varied range, gas gensets, various types
of acoustic enclosures, electrical products such as switchboards
and compact substations, composite material products, and sheet
metal components. Its manufacturing facility is in Pernem, Goa, and
has installed capacity of around 15,000 generator sets per annum.
REAL TEXTILES: CRISIL Keeps B Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Real Textiles
(RT) continue to be 'CRISIL B/Stable/CRISIL A4 Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Packing Credit 4.5 CRISIL A4 (Issuer Not
Cooperating)
Term Loan 1 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with RT for
obtaining information through letters and emails dated Aug. 24,
2023, Aug. 14, 2023, July 29, 2023, July 13, 2023, June 27, 2023,
June 11, 2023, May 26, 2023, May 11, 2023 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
Earlier, the entity did not provide the No Default Statements (NDS)
for the three consecutive months. Therefore, the issuer was
classified as 'non cooperative' in line with Clause 11. 3 of SEBI
CRA Operational Circular dated May 25, 2023
'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 RT , which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RT is
consistent with 'Assessing Information Adequacy Risk' Based on the
last available information, the ratings on bank facilities of RT
continues to be 'CRISIL B/Stable/CRISIL A4 Issuer Not
Cooperating'.
RT was set up in 2017 as a proprietorship concern by Mr P
Masilamani. The firm manufactures readymade garments for kids, men,
and women, and hosiery garments such as socks, stockings, tights
and handkerchiefs. Its facility is at Avinashi, Tamil Nadu.
ROHIT STEELS: CARE Keeps B- Rating in Not Cooperating Category
--------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Rohit
Steels (RST) continue to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 31.69 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 5.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated August 30,
2022, placed the rating(s) of RST under the 'issuer
non-cooperating' category as RS 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. RST
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated July 16, 2023, July 26, 2023, August 5, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Rohit Steels (RST) was established as a proprietorship firm in 2004
by Mr Rohit Bansal. INRis engaged in the manufacturing of steel
wires and bright bars (used in the manufacturing of auto
components), at its manufacturing facility located in Rohtak,
Haryana.
SINGUR COLD: CARE Reaffirms B+ Rating on INR6.50cr LT Loan
----------------------------------------------------------
CARE Ratings has reaffirmed ratings on certain bank facilities of
Singur Cold Storage Private Limited (SCSPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 6.50 CARE B+; Stable Reaffirmed
Short Term Bank
Facilities 0.50 CARE A4 Reaffirmed
Rationale and key rating drivers
The rating assigned to the bank facilities of SCSPL constrained by
small scale of operations, working capital intensive nature of
business resulting in leveraged capital structure and weak debt
coverage indicators, regulated nature of Industry, risk of
delinquency in loans extended to farmers, seasonality of business
with susceptibility to vagaries of nature and competition from
other local players. However, the rating derives strength from
experienced management and long track of operations and proximity
to potato growing area.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Sizeable increase in scale of operations from present level
(Total Operating Income above INR25 crore) of the entity on
a sustainable basis.
* Improvement in overall gearing level below 1.00x on a sustained
basis.
Negative factors
* Decrease in scale of operations from present level (Total
Operating Income below INR3.00 crore) of the entity on a
sustainable basis.
* Deterioration in overall gearing level above 4.00x on a sustained
basis.
Analytical approach: Standalone.
Outlook: Stable
The company is expected to sustain its operational and financial
performance on the back of high advances and renting of cold
storage.
Detailed description of the key rating drivers:
Key weaknesses
* Small scale of operations: SCSPL is a relatively small player in
the cold storage business having total operating income and PAT of
INR4.03 crore and INR0.75 crore, respectively, in FY23 (Prov.)
mainly on account of high portion of revenue being derived from
rental of potato storage. The small size restricts the financial
flexibility of the company in times of stress and deprives it from
economies of scale The total capital employed was also low at
around INR8.51 crore as on March 31, 2023. Small scale operations
with a low net worth base limit the credit risk profile of the
company in an adverse scenario. PBILDT margin increased
significantly to 18.54% in FY23 primarily due to increased advances
to farmer and interest income on it. However, the PAT margin has
decreased to 4.51% in FY23 since there is an increase in interest
cost due to higher utilization of working capital limits during the
year.
* Working capital intensive nature of business resulting in
leveraged capital structure and weak debt coverage indicators:
SCSPL is engaged in the cold storage business and accordingly its
operation is working capital intensive. The company utilizes
working capital limits to give advances to some potato farmers who
store their crop in the company's cold storage. The quantum of
funding is determined based on cost analysis done by West Bengal
SLBC (State level Bankers' Committee) every year in December before
the harvesting season. Overall gearing ratio improved from 2.43x as
on Mar.31, 2022 to 2.03x as on March 31, 2023. However, the debt
coverage indicators deteriorated marked by interest coverage at
1.27x and total debt to GCA has deteriorated to 19.12x in FY23 due
to decrease in GCA.
* Regulated nature of industry: In West Bengal, the basic rental
rate for cold storage operations is regulated by the state
government through West Bengal SLBC (State level Bankers'
Committee). The rent of these cold storages is decided by
considering various parameters related to pre-harvest and post
-harvest costs involved in cultivation and storage. Due to
government intervention, the cold storage facility providers cannot
increase rental charge commensurate with increased power tariff and
labour charge. For FY23, the ceiling price of potato for direct
financing the cold storage directly to the farmers at INR661 per
Quintal.
* Risk of delinquency in loans extended to farmers: SCSPL provides
interest bearing advances only to farmers & traders who store their
potato in the company's cold storage. Before the closure of the
season in November, the farmers & traders are required to clear
their outstanding dues with the interest. In view of this, there
exists a risk of delinquency in loans extended, in case of downward
correction in potato or other stored goods prices, as all such
goods are agro commodities.
* Seasonality of business with susceptibility to vagaries of
nature: SCSPL's operation is seasonal in nature as potato is a
winter season crop with its harvesting period commencing in March.
The loading of potatoes in cold storages begins by the end of
February and lasts till March. Additionally, with potatoes having a
preservable life of around eight months in the cold storage,
farmers liquidate their stock from the cold storage by end of
season i.e., generally in the month of November. The unit remains
non-operational during the period between December to February.
Furthermore, lower agricultural output may have an adverse impact
on the rental collections as the cold storage units collect rent
based on quantity stored and the production of potato is highly
dependent on vagaries of nature.
* Competition from other local players: Despite being capital
intensive, the entry barrier for new cold storage is low, backed by
no capital subsidy schemes of the government. As a result, the
potato storage business in the region has become competitive,
forcing cold storage owners to lure farmers by providing them
interest bearing advances against stored potatoes which augments
the business risk profile of the companies involved in the trade.
Key strengths
* Experienced management and long track record of operations: SCSPL
started its commencement from 1960 and thus has long track record
of operations. Mr. Piyush Mohan Agarwal (Director), he is also a
qualified Chattered Accountant and Mr. Shrivats Mohan Agarwal looks
after overall management of the company. Mr. Piyush Mohan Agarwal
has more than three decades of experience in cold storage business
and is supported by a team of experienced professionals who have
rich experience in the same line of business.
* Proximity to potato growing area: SCSPL's storing facility is
situated in the Hooghly district of West Bengal which is one of the
major potatoes growing regions of the state. The favourable
location of the storage unit, near the leading potato growing areas
provides it with a wide catchment and making it suitable for the
farmers in terms of transportation and connectivity.
Liquidity: Adequate
Liquidity is marked by sufficient cushion in cash accruals vis-
a-vis INR0.02 crore repayment obligation in FY24. Moreover, cash
balance stood moderate at INR0.57 crore as on March 31, 2023. The
average utilization of working capital limit remained moderate at
60-70% during last 12 months ended July 2023 as per lender. The
current ratio remained at 0.44x as on March 31, 2023.
Singur Cold Storage Private Limited (SCSPL), incorporated in the
year 1960, is a Kolkata (West Bengal) based company, promoted by
the Agarwal family. It is engaged in the business of providing cold
storage services to potato growing farmers and potato traders,
having an installed storage capacity of 233,710 quintals (present
rate of warehouse rent is INR180.50/ quintal including insurance
(Rs.12.50) excluding wages (Rs. 40/quintal which was provided to
labour directly and not included in books of accounts) in Singur,
Hoogly district of West Bengal. Mr. Piyush Mohan Agarwal (Director)
and Mr. Shrivats Mohan Agarwal looks after overall management of
the company. Mr. Piyush Mohan Agarwal has more than three decades
of experience in cold storage business and is supported by a team
of experienced professionals who have rich experience in the same
line of business.
SVS PIPE: CRISIL Reaffirms B+ Rating on INR4.0cr Term Loan
----------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable' rating on the
bank loan facilities of SVS Pipe Industries (SVSPI).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2.15 CRISIL B+/Stable (Reaffirmed)
Proposed Fund-
Based Bank Limits 0.85 CRISIL B+/Stable (Reaffirmed)
Term Loan 4.00 CRISIL B+/Stable (Reaffirmed)
The rating continues to reflect the modest scale of operations and
susceptibility of the operating margin to intense competition and
volatility in raw material prices. These weaknesses are partially
offset by the extensive experience of the proprietor in the pipes
and pipe fittings business.
Key Rating Drivers & Detailed Description
Weaknesses:
* Susceptibility of operating margin to intense competition and
volatility in raw material prices: Prices of the key raw material,
polyethylene (PE) granules, remain susceptible to movements in
crude oil prices. With raw material cost accounting for 75-80% of
revenue, the group also remains exposed to volatility in input
prices. The pipe and water tank industry are largely unorganised,
rendering the segment intensely competitive. Furthermore,
competition from established players such as Apollo Pipes Ltd,
Prince Pipes & Fittings Ltd, Finolex Industries Ltd, etc reduces
the pricing power.
* Modest scale of operations: Revenue of INR11.16 crore in fiscal
2023 reflects the modest scale of operations. The firm faces
intense competition from several established and regional players.
The firm's modest scale restricts bargaining power with customers
and suppliers. Revenue is likely to improve over the medium term,
as a result of the ongoing capital expenditure (capex) for
manufacturing water tanks. Timely commencement of commercial
operations without any cost overrun will be a key rating
sensitivity factor.
Strength:
* Extensive experience of the proprietor: The decade-and-half-long
experience of the proprietor in the pipes and pipe fittings
business and his strong understanding of market dynamics should
continue to support the business risk profile. Over the years, the
proprietor has maintained healthy relationships with suppliers and
customers.
Liquidity: Stretched
Liquidity remains constrained by limited cash accrual and high bank
limit utilisation. Expected cash accrual of more than INR0.90
crore, though low, should suffice to cover the term debt obligation
of over INR0.35 crore in the medium term. Bank limit utilisation
averaged around 97% for the 12 months ended June 30, 2023. Current
ratio was moderate at 1.06 time on March 31, 2023, and should
remain moderate over the medium term.
Outlook: Stable
CRISIL Ratings believes SVSPI will continue to benefit from the
extensive experience of its proprietor in the pipes and pipe
fittings business.
Rating Sensitivity factors
Upward factors:
* Sustained revenue growth of over 30% and stable operating margin
leading to cash accrual above INR1.5 crore
* Improvement in financial risk profile marked by timely infusion
of capital
Downward factors:
* Slower ramp up in scale, leading to lower-than-expected revenue
and cash accrual below INR0.30 crore
* Substantial increase in working capital requirement and weak
financial risk profile
SVSPI was formed as a proprietary concern of Mr Vinay Kumar Singh
in September 2019. The firm manufactures polyvinyl chloride (PVC)
pipes, plastic pipes, conduits, rigid PVC pipes, and garden pipes,
at its facility in village Kudari (Kaimur district, Bihar).
Commercial operations began in July 2020.
TECPRO SYSTEMS: CRISIL Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings has continued its ratings on the bank facilities and
the commercial paper of Tecpro Systems Limited (TSL) at 'CRISIL
D/CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 205 CRISIL D (Issuer Not
Cooperating)
Bank Guarantee 285 CRISIL D (Issuer Not
Cooperating)
Bank Guarantee 200 CRISIL D (Issuer Not
Cooperating)
Bank Guarantee 215 CRISIL D (Issuer Not
Cooperating)
Bank Guarantee 560 CRISIL D (Issuer Not
Cooperating)
Bank Guarantee 75 CRISIL D (Issuer Not
Cooperating)
Bank Guarantee 110 CRISIL D (Issuer Not
Cooperating)
Cash Credit 475 CRISIL D (Issuer Not
Cooperating)
Cash Credit 30 CRISIL D (Issuer Not
Cooperating)
Cash Credit 240 CRISIL D (Issuer Not
Cooperating)
Cash Credit 130 CRISIL D (Issuer Not
Cooperating)
Cash Credit 75 CRISIL D (Issuer Not
Cooperating)
Letter of credit 1,650 CRISIL D (Issuer Not
& Bank Guarantee Cooperating)
CRISIL Ratings has been consistently following up with TSL for
obtaining information through letters and emails dated, July 26,
2023, 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 TSL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on TSL
is consistent with 'Assessing Information Adequacy Risk'. Further,
the company is under liquidation as per NCLT order dated January
16, 2020. Therefore, on account of inadequate information and lack
of management cooperation, CRISIL Ratings has continues its ratings
on the bank facilities and the commercial paper of TSL at 'CRISIL
D/CRISIL D Issuer Not Cooperating'.
TSL, incorporated in 1990, provides material handling (MH)
solutions on a turnkey basis for power, cement, coal storage, steel
and other metallurgical plants. Its projects involve designing,
engineering, manufacturing, supplying, erection and commissioning
of MH systems.
TISSORI INDIA: CARE Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Tissori
India Fabrics Private Limited (TIFPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 50.02 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 24, 2022,
placed the rating(s) of TIFPL under the 'issuer non-cooperating'
category as TIFPL 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. TIFPL continues to
be noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 10, 2023, May 20, 2023, May 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).
Analytical approach: Combined
A combined view is considered for 'Oneworld Group' companies which
includes Oneworld Creation Private Limited (OCPL), Oneworld
Industries Private Limited (OIPL), Oneworld Retail Private Limited
(ORPL), Oneworld Sourcing (OS), Tissori India Fabrics Private
Limited (TIFPL), Maison De Couture Private Limited (MDC), Zephyr
Fabric Trading LLP (ZFT), Worsted Overseas Trading LLP (WOT),
WorldStar Fabric LLP (WF), Ultimo Fabrics Private Limited (UFPL)
and Oneworld Design Studios Private Limited (ODS). The combined
view for the group is on account of strong operational and
managerial linkages being in the same line of business and common
promoters.
Outlook: Not Applicable
Established in the year 1995 by Mr. Urvil Jani and Mr. Manoj
Khushalani, the group began its business under a partnership firm
"Roshvil Enterprise". The firm was engaged in the business of
trading of fabrics in bulk quantities for men's wear. Subsequently,
the product profile was diversified by the firm to cater to women's
wear and readymade garments. Owing to increase in the scale of
operation over the years, the group was re-christened as Oneworld
group and the business carried under the partnership firm was
transferred to a private limited company incorporated in the year
2012 viz Oneworld Industries Private Limited. Consequently, many
other companies were incorporated to carry on trading of various
textile products. Currently, the group is engaged in the business
of trading in fabric materials and readymade garments (manufactured
on job work basis). Maison De Couture Fabrics Private Limited was
incorporated on August 10, 2015 to establish and undertake business
of trading of shirting fabrics in India under the brand name
'Tissori' on stock and sales basis.
VARSHA CORP: Liquidation Process Case Summary
---------------------------------------------
Debtor: Varsha Corporation Limited
Varsha, 13, Adarsh Soc, Ramchandra Lane Extn,
Malad West, Mumbai – 400064
Liquidation Commencement Date: August 2, 2023
Court: National Company Law Tribunal Mumbai Bench
Liquidator: Vinodkumar Pukhraj Ambavat
Room No. 40, 9/15 Morarji Velji Bldg. 1st Floor,
Dr. M.B Velkar Street, Kalbadevi Road, Mumbai - 400002
Email: vinod.ambavat@ajallp.com
Orion Resolution and Turnaround Private Limited. 811,
8th Floor, Meadows. Sahar Plaza Complex,
Off. J B Nagar/ Chakala Metro Station, Andheri - Kurla
Road,
Andheri East, Mumbai – 400093
Email cirp.varshacorporation@gmail.com
Last date for
submission of claims: September 15, 2023
WORSTED OVERSEAS: CARE Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Worsted
Overseas Trading LLP (WOTL) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 40.52 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 24, 2022,
placed the rating(s) of WOTL under the 'issuer non-cooperating'
category as WOTL 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. WOTL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 10, 2023, May 20, 2023, May 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).
Analytical approach: Combined
A combined view is considered for 'Oneworld Group' companies which
includes Oneworld Creation Private Limited (OCPL), Oneworld
Industries Private Limited (OIPL), Oneworld Retail Private Limited
(ORPL), Oneworld Sourcing (OS), Tissori India Fabrics Private
Limited (TIFPL), Maison De Couture Private Limited (MDC), Zephyr
Fabric Trading LLP (ZFT), Worsted Overseas Trading LLP (WOT),
WorldStar Fabric LLP (WF), Ultimo Fabrics Private Limited (UFPL)
and Oneworld Design Studios Private Limited (ODS). The combined
view for the group is on account of strong operational and
managerial linkages being in the same line of business and common
promoters.
Outlook: Not Applicable
Established in the year 1995 by Mr. Urvil Jani and Mr. Manoj
Khushalani, the group began its business under a partnership firm
"Roshvil Enterprise". The firm was engaged in the business of
trading of fabrics in bulk quantities for men's wear. Subsequently,
the product profile was diversified by the firm to cater to women's
wear and ready made garments. Owing to increase in the scale of
operation over the years, the group was re-christened as Oneworld
group and the business carried under the partnership firm was
transferred to a private limited companies incorporated in the year
2012 viz Oneworld Industries Private Limited. Consequently, many
other companies were incorporated to carry on trading of various
textile products. Currently, the group is engaged in the business
of trading in fabric materials and readymade garments (manufactured
on job work basis). Maison De Couture Fabrics Private Limited was
incorporated on August 10, 2015 to establish and undertake business
of trading of shirting fabrics in India under the brand name
'Tissori' on stock and sales basis.
YADVENDRA FOODS: CARE Keeps B- Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Yadvendra
Foods Private Limited (YFPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated August 29,
2022, placed the rating(s) of YFPL under the 'issuer
non-cooperating' category as YFPL 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. YFPL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated July 15, 2023, July 25, 2023, August 4, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE 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).
Uttar Pradesh based Yadvendra Foods Private Limited (YFPL), is a
private limited company and was incorporated in 2013 and managed by
Mr. Anuj Kumar Yadav and Mr. Neeraj Kumar Yadav. YFPL is engaged in
processing of rice both common and basmati at its unit located at
Etawah, Uttar Pradesh.
ZEE ENTERTAINMENT: IDBI Files Appeal Against NCLT Order on Merger
-----------------------------------------------------------------
The Economic Times reports that IDBI Bank has moved the appellate
tribunal to challenge the National Company Law Tribunal's approval
for Sony-Zee merger, a move that could delay the big-ticket deal
that has been approved by stock exchanges and the Competition
Commission of India.
In a disclosure to the stock exchanges, Zee Entertainment
Enterprise Ltd (ZEEL) said the company has been served with an
appeal on behalf of IDBI Bank before the National Company Law
Appellate Tribunal (NCLAT), ET relates.
According to ET, the lender has challenged NCLT order on August 10
granting approval to the composite scheme between ZEEL, Culver Max
Entertainment (Sony), and Bangla Entertainment, a subsidiary of
Sony, which would create a $10-billion media giant.
Last month, NCLAT had admitted IDBI Bank's petition to initiate
insolvency proceedings against ZEEL over unpaid dues of INR150
crore, recalls ET. The appellate tribunal has listed that matter
for hearing on October 11.
"In the objection to a scheme, the objectors as well as the
tribunal have a limited role and scope," said Ashish Pyasi,
associate partner at law firm Dhir & Dhir Associates, pointing out
that NCLT had rejected IDBI Bank's objection as it found that "the
debt is disputed".
Based in Mumbai, India, Zee Entertainment Enterprises Limited,
together with its subsidiaries, engages in broadcasting satellite
television channels.
=================
I N D O N E S I A
=================
LUMMO: Enters Into Voluntary Liquidation
----------------------------------------
Deal Street Asia reports that Indonesian bookkeeping startup Lummo,
previously known as BukuKas, has entered into voluntary
liquidation, according to filings with Singapore's Accounting and
Corporate Regulatory Authority (ACRA).
Based in Jakarta, Indonesia, Lummo operates as an enablement
platform for e-commerce websites. The company supports online
businesses in implementing the direct-to-consumer (D2C) business
model.
=====================
N E W Z E A L A N D
=====================
DICK SMITH: KPMG Releases 16th Report to Creditors
--------------------------------------------------
KPMG, the receivers of Dick Smith Electronics in New Zealand, has
released its sixteenth report to creditors dated August 18, 2023.
This report details the financial status and ongoing legal battles
related to the company.
Financial Status:
* As of July 4, 2023, secured debt owed to syndicated lenders was
NZD245,516,110.
* Claims by secured creditors, excluding syndicated lenders, have
been settled at NZD1,298,597.
* Preferential claims, including employee and tax dues, total
NZD3,244,923.
* Unsecured debts and liabilities as at July 4, 2023, amount to
around NZD24,904,289, covering trade creditors, employees,
landlords, customers, and suppliers.
According to the report, legal proceedings against the directors of
DSHE Holdings Limited, the parent company, began in 2017 and are
ongoing.
The report suggests there may not be enough funds for distribution
to unsecured creditors.
The estimated completion date for the receivership is June 30,
2024, contingent on the High Court of Australia's decision.
The report highlights the challenges and complexities of the
liquidation process, leaving creditors, employees, and stakeholders
in uncertainty.
About Dick Smith
Dick Smith Holdings Limited Ltd was a retailer of consumer
electronics products in Australia and New Zealand.
As reported in the Troubled Company Reporter-Asia Pacific on Jan.
6, 2016, Dick Smith Holdings Ltd was placed in receivership on Jan.
5, 2016, following the appointment of Voluntary Administrators.
Ferrier Hodgson partners James Stewart, Jim Sarantinos and Ryan
Eagle were appointed Receivers and Managers over DSH and a number
of associated entities. The appointment was made by a
syndicate of lenders which hold security over the group.
The Receivers' appointment was followed by the appointment of
Joseph Hayes, Jason Preston, Kare Johnstone and Andrew Grenfell of
McGrathNicol as voluntary administrators of the Company on Jan. 5,
2016. The company was placed into liquidation on July 15, 2016,
with McGrathNicol as the liquidators.
Despite efforts to sell the company, it closed all 62 retail stores
by April 29, 2016.
INDUSTRIAL AND COMMERCIAL: Creditors' Proofs of Debt Due Oct. 13
----------------------------------------------------------------
Creditors of Industrial and Commercial Enterprises Limited are
required to file their proofs of debt by Oct. 13, 2023, to be
included in the company's dividend distribution.
The High Court at Auckland appointed Tony Leonard Maginness and
Jared Waiata Booth of Baker Tilly Staples Rodway Auckland as
liquidators on Sept. 1, 2023.
NOIHSAF 2023: Creditors' Proofs of Debt Due on Oct. 3
-----------------------------------------------------
Creditors of NOIHSAF 2023 Limited are required to file their proofs
of debt by Oct. 3, 2023, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Sept. 3, 2023.
The company's liquidators are:
Brenton Hunt
PO Box 13400
City East
Christchurch 8141
P PROS: Court to Hear Wind-Up Petition on Sept. 28
--------------------------------------------------
A petition to wind up the operations of P Pros Limited will be
heard before the High Court at Christchurch on Sept. 28, 2023, at
10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on July 27, 2023.
The Petitioner's solicitor is:
Gabrielle McGillivray
Inland Revenue, Legal Services
PO Box 1782
Christchurch 8140
PROFESSIONAL BAY: BDO Tauranga Appointed as Liquidators
-------------------------------------------------------
Thomas Lee Rodewald and Paul Thomas Manning of BDO Tauranga on Aug.
30, 2023, were appointed as liquidators of Professional Bay
Painters Limited.
The liquidators may be reached at:
C/- BDO Tauranga Limited
Level 1, The Hub
525 Cameron Road
PO Box 15660
Tauranga 3144
REDCURRENT LIMITED: Liquidators Fail to Sell Retailer
-----------------------------------------------------
BusinessDesk reports that the liquidators of homeware and lifestyle
retailer Redcurrent have finished up after just over six months,
with the business failing to sell.
While the Inland Revenue Department and staff got their full
amounts, the 62 unsecured creditors owed NZD2.6 million received
nothing, according to BusinessDesk.
EY's Larissa Logan and Rhys Cain were appointed liquidators of the
Hawke's Bay-headquartered company by its shareholders in February,
with it owing roughly NZD5 million.
The retailer, which grew to have more than 10 stores, was started
by mother-daughter duo Audrey McHardy and Rebecca Kain – the sole
director – more than 20 years ago.
According to BusinessDesk, the liquidators said a large portion of
the time was spent dealing with issues caused by Cyclone Gabrielle,
including staff, the store in Auckland, and the distribution centre
in Havelock North.
TUHOE MATAURANGA: Court to Hear Wind-Up Petition on Sept. 12
------------------------------------------------------------
A petition to wind up the operations of Tuhoe Matauranga Trust will
be heard before the High Court at Rotorua on Sept. 12, 2023, at
10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on July 6, 2023.
The Petitioner's solicitor is:
T. Saunders
Inland Revenue, Legal Services
21 Home Straight
PO Box 432
Hamilton
=================
S I N G A P O R E
=================
DOWELL ENGINEERING: Creditors' Meetings Set for Oct. 12
-------------------------------------------------------
Dowell Engineering Services Pte Ltd and Precision Hydraulics Pte.
Ltd. will hold a meeting for its creditors on Oct. 12, 2023, at
11:30 a.m. and 2:00 p.m., respectively, via audio-visual conference
on the Zoom Platform.
Agenda of the meeting includes:
a. to lay an account before the creditors showing how the
winding up has been conducted and an explanation of the
account;
b. to approve the Final Statement of Account, the provision for
finalization expenses, and the application to the Court for
the release of the Liquidator, and the dissolution of the
Company;
c. to resolve that the books, accounts and documents of the
Company be destroyed pursuant to Section 195(2) of the
Insolvency, Restructuring and Dissolution Act 2018 (No. 40
of 2018);
d. to appoint solicitors to assist the Liquidator; and
e. any other business.
The company's liquidator can be reached at:
Mr. Don M Ho
c/o DHA+ pac
63 Market Street
#05-01A Bank of Singapore Centre
Singapore 048942
GRAINS AND INDUSTRIAL: Commences Wind-Up Proceedings
----------------------------------------------------
Members of Grains and Industrial Products Trading Pte Ltd, on Sept.
4, 2023, passed a resolution to voluntarily wind up the company's
operations.
The company's liquidators are:
Abuthahir Abdul Gafoor
Yessica Budiman
AAG Corporate Advisory
144 Robinson Road
#14-02 Robinson Square
Singapore 068908
INGENICO PAYMENTS: Creditors' Proofs of Debt Due on Oct. 7
----------------------------------------------------------
Creditors of Ingenico Payments and Services Pte. Ltd. are required
to file their proofs of debt by Oct. 7, 2023, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Aug. 29, 2023.
The company's liquidators are:
Kon Yin Tong
Aw Eng Hai
Ow Xiu Jing
c/o 1 Raffles Place
#04-61 One Raffles Place Tower 2
Singapore 048616
LEO PHARMA: Creditors' Proofs of Debt Due on Oct. 7
---------------------------------------------------
Creditors of Leo Pharma Asia Pte. Ltd. are required to file their
proofs of debt by Oct. 7, 2023, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Aug. 31, 2023.
The company's liquidators are:
Bob Yap Cheng Ghee
Toh Ai Ling
Chan Kwong Shing, Adrian
12 Marina View #15-01
Asia Square Tower 2
Singapore 018961
TALENTX AI: Creditors' Proofs of Debt Due on Sept. 30
-----------------------------------------------------
Creditors of Talentx AI Pte. Ltd. are required to file their proofs
of debt by Sept. 30, 2023, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Aug. 25, 2023.
The company's liquidators are:
Mr. Don M Ho
Mr. David Ho Chjuen Meng
c/o DHA+ pac
63 Market Street
#05-01A Bank of Singapore Centre
Singapore 048942
TULP STREET: Creditors' Proofs of Debt Due on Sept. 19
------------------------------------------------------
Creditors of Tulp Street Pte. Ltd. are required to file their
proofs of debt by Sept. 19, 2023, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Aug. 30, 2023.
The company's liquidators are:
Cosimo Borrelli
Patrick Bance
c/o Kroll Pte. Limited
1 Raffles Place, #10-62
One Raffles Place
Singapore 048616
WBL GLOBAL: Creditors' Meetings Set for Sept. 18
------------------------------------------------
WBL Global Management Pte Ltd, which is in compulsory liquidation,
will hold a meeting for its creditors on Sept. 18, 2023, at 10:00
a.m., by way of video conference via Zoom.
Agenda of the meeting includes:
a. to receive a status update from the Joint and Several
Liquidators;
b. to appoint a Committee of Inspection ("COI") pursuant to
Section 150(1) of the Insolvency, Restructuring and
Dissolution Act 2018 (Act 40 of 2018).; and
c. discuss other business.
The liquidators may be reached at:
Lau Chin Huat
Yeo Boon Keong
WBL Global Management
c/o Technic Inter-Asia Pte Ltd
50 Havelock Road #02-767
Singapore 160050
WORLD FUEL: Creditors' Proofs of Debt Due on Oct. 6
---------------------------------------------------
Creditors of World Fuel Singapore Holding Company I Pte. Ltd. are
required to file their proofs of debt by Oct. 6, 2023, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on Aug. 31, 2023.
The company's liquidators are:
Ho May Kee
Paresh Tribhovan Jotangia
Grant Thornton Singapore
8 Marina View
#40-04/05 Asia Square Tower 1
Singapore 018960
===============
T H A I L A N D
===============
JKN GLOBAL: Shares Plunge as Debt Holders Demand Payment
--------------------------------------------------------
Bangkok Post reports that shares of JKN Global Group plummeted by
more than 8% on Sept. 6 after representatives of the company's
debenture holders demanded cross-defaults from the SET-listed owner
of Miss Universe Organization (MUO) to repay debts within 30 days.
In a filing to the Stock Exchange of Thailand (SET), JKN said it
received letters from Asia Plus Securities (ASPS) and Daol
Securities (Thailand), both of which are representatives of the
company's six tranches of debentures, according to Bangkok Post.
In a letter dated Sept. 4, ASPS said it required JKN to pay the
total outstanding principal plus interest for JKN239A debenture
within a specific period, after the company defaulted on payment of
the debentures due on Aug. 31.
JKN, which bought MUO for US$20 million last year, informed the SET
on Aug. 30 it could not fully pay THB610 million worth of bond
principal and interest due on Sept 1.
Bangkok Post says the company called a meeting of bondholders later
this month to seek their approval for the payment delay.
In another letter, ASPS noted a cross-default of JKN246A
debentures.
"The company is required to clarify relevant solutions to the
debenture holder representative by Sept. 8 and proceed with such
action within 30 days from Sept. 1," said the filing.
Bangkok Post relates that Daol Securities also inquired about
solutions for the default of the JKN239A debenture, and notified a
cross-default on JKN243A, JKN24OA, JKN24NA, JKN252A, and JKN255A
debentures.
In a filing, JKN chief executive and managing director Jakkaphong
Jakrajutatip insisted bond repayment rescheduling "shall not be
considered a default," Bangkok Post relays.
According to the report, the company plans to convene a debenture
holders' meeting for JKN239A debentures on Sept. 27 to consider a
debt repayment plan.
In addition, the company plans to hold a debenture holders' meeting
for the other debentures within the period specified by the
contracts.
"The prospective meetings are intended to seek waivers for default,
to ensure that any associated events will not be considered a
default, and to seek waivers for exercising of rights to call for
immediate debt repayment of relevant debentures, or call default,"
Bangkok Post quotes Ms Jakkaphong as saying.
The company confirms its commitment to complete repayment of both
principal and interest attached to all debentures, she said.
About JKN Global
JKN Global Group PCL (BKK:JKN) -- https://jknglobalgroup.com/--
together with its subsidiaries, engages in content distribution
business in Thailand. It operates through five segments: Sales of
Program Rights, Advertising Services, Sale of Products, Miss
Universe License Management Business, and Other Business. The
company is involved in the distribution of contents of the movies,
series, and documentaries; and production and distribution of
non-alcoholic beverages. It also provides advertising services;
offers television stations; engages in the manufacture and
distribution of health, beauty, and consumer products; and produces
and distributes television programs that granting the copyright to
the Miss Universe pageant and relating to the Miss Universe
pageant's activities. In addition, the company offers studio
leasing, costume rental, and artist management services, as well as
organizes events; and retail sale through mail order, television,
radio, and telephone. It also exports its products. The company was
formerly known as JKN Global Media Public Company Limited and
changed its name to JKN Global Group Public Company
Limited in May 2022.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2023. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000.
*** End of Transmission ***