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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, October 6, 2023, Vol. 26, No. 201
Headlines
A U S T R A L I A
AUSTRALIAN LOGISTICS: Second Creditors' Meeting Set for Oct. 10
BABYLON HOMES: Ex-Director Fined for Failures at 5 Projects
CITY GARDEN: Second Creditors' Meeting Set for Oct. 11
CLOUGH GROUP: M&R Again Fails to Regain Control of RUC
COMPETITION PRO: Second Creditors' Meeting Set for Oct. 11
CONQUEST 2023-2: S&P Assigns BB (sf) Rating to Class E Notes
DDSR AUSTRALIA: First Creditors' Meeting Set for Oct. 13
DYNAMITE CONCRETE: Second Creditors' Meeting Set for Oct. 10
KALIUM LAKES: Agrimin Backs Out of Buying Potash Producer
LIBERTY FUNDING 2023-1: Moody's Gives (P)B2 Rating to Cl. F Notes
C H I N A
CHINA EVERGRANDE: Crisis Tests Beijing's Fallout Management
I N D I A
CHALAPATHI EDUCATION: ICRA Keeps B+ Ratings in Not Cooperating
CHOUHAN AUTOMOBILES: CARE Keeps C Debt Rating in Not Cooperating
CREVITA GRANITO: ICRA Keeps B+ Debt Rating in Not Cooperating
DCR DISTILLERY: CARE Keeps D Debt Rating in Not Cooperating
EMBEE AGRO: CARE Keeps B- Debt Rating in Not Cooperating Category
FORTUNE FOAM: ICRA Keeps B+ Debt Ratings in Not Cooperating
GAKHIL RESORT: CARE Keeps C Debt Rating in Not Cooperating
GMR HYDERABAD: Fitch Affirms LongTerm IDR at 'BB+', Outlook Stable
GO FIRST: India Amends Insolvency Rules Amid Jet Leasing Dispute
ICE TOUCH: CARE Keeps C Debt Rating in Not Cooperating Category
ICOAT PROJECTS: CARE Keeps D Debt Ratings in Not Cooperating
JAGADISHWAR COLD: CARE Keeps B- Debt Rating in Not Cooperating
JALARAM GINNING: CARE Keeps B- Debt Rating in Not Cooperating
JET AIRWAYS: Creditors Question Source of Jalan-Kalrock Deposit
JP AGRO: CARE Keeps D Debt Rating in Not Cooperating Category
JSW INFRASTRUCTURE: Moody's Ups CFR & Senior Secured Bonds to Ba1
KALPANA BIRI: CARE Lowers Rating on INR12cr LT Loan to B
KIRPA RAM: CARE Keeps B Debt Rating in Not Cooperating Category
LEELA KRISHNA: CARE Keeps D Debt Rating in Not Cooperating
MANOJ KUMAR: CARE Lowers Rating on INR15cr LT Loan to B-
MINDSCAPE INT'L: CARE Keeps B- Debt Rating in Not Cooperating
NEMCARE HOSPITAL: CARE Keeps D Debt Rating in Not Cooperating
P.S. ASSOCIATES: CARE Keeps B-/A4 Debt Rating in Not Cooperating
PRAGATI PACKAGING: CARE Keeps B- Debt Rating in Not Cooperating
PRASAD EDUCATION: CARE Keeps D Debt Rating in Not Cooperating
PRASADHINI ENTERPRISES: CARE Keeps B- Rating in Not Cooperating
PROGRESSIVE CARS: CARE Keeps B Debt Rating in Not Cooperating
RAM AGRO: CARE Keeps B- Debt Rating in Not Cooperating Category
REVASHANKAR GEMS: CARE Keeps D Debt Rating in Not Cooperating
SHALIMAR ISPAT: CARE Keeps D Debt Ratings in Not Cooperating
V. SELVAM: CARE Reaffirms B+ Rating on INR16.20cr LT Loan
VASUNDHARA DEVELOPERS: ICRA Keeps B Rating in Not Cooperating
YASHODAKRISHNA AUTO: CARE Keeps D Debt Rating in Not Cooperating
I N D O N E S I A
BUMI SERPONG: Moody's Affirms 'Ba3' CFR, Outlook Remains Stable
M O N G O L I A
MONGOLIAN MORTGAGE: Moody's Puts 'B3' CFR on Review for Downgrade
N E W Z E A L A N D
AK SERVICES: Court to Hear Wind-Up Petition on Oct. 13
FD KITCHENS: Creditors' Proofs of Debt Due on Oct. 31
P PROS: Creditors' Proofs of Debt Due on Oct. 28
SEA HUNTER: Court to Hear Wind-Up Petition on Nov. 3
TLC CONTRACTORS: High Court to Hear Liquidation Bid on Oct. 13
TRADE LIFE: Waterstone Insolvency Appointed as Receivers
S I N G A P O R E
CHARISMA ENERGY: Four Directors Step Down
DEELISH BRANDS: Commences Wind-Up Proceedings
HEALTHSCIENCES INTERNATIONAL: Commences Wind-Up Proceedings
LASER CLINICS: Creditors' Meeting Set for Oct. 12
SAIL INTERNATIONAL: Commences Wind-Up Proceedings
SINGAPORE JHC: Court Enters Wind-Up Order
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=================
A U S T R A L I A
=================
AUSTRALIAN LOGISTICS: Second Creditors' Meeting Set for Oct. 10
---------------------------------------------------------------
A second meeting of creditors in the proceedings of Australian
Logistics Solutions Pty Limited has been set for Oct. 10, 2023 at
10:00 a.m. at the offices of Hall Chadwick at Level 4/240 Queen St
in Brisbane City.
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 Oct. 9, 2023 at 5:00 p.m.
Blair Pleash of Hall Chadwick was appointed as administrator of the
company on Sept. 4, 2023.
BABYLON HOMES: Ex-Director Fined for Failures at 5 Projects
-----------------------------------------------------------
The former director of a now-defunct Perth building company has
been ordered to pay AUD25,000 in fines and costs for unauthorised
work and inadequate oversight of five building projects.
On Sept. 8, 2023, the State Administrative Tribunal (SAT) found
former registered building contractor Babylon Homes and
Construction Pty Ltd (BC102939, expired), overseen by Mohammed
Razaq, was the subject of disciplinary matters under WA's builder
registration laws.
Information presented to the SAT by Building and Energy showed home
owners in Ballajura, Mirrabooka, Dianella and two Landsdale sites
engaged Babylon for building and renovation projects valued between
AUD33,000 and AUD250,000 in 2020 or 2021.
At all five properties, Babylon carried out work without the
required building permits and without a nominated supervisor to
oversee the projects. For four of the properties, the company also
failed to obtain home indemnity insurance, which is compulsory for
residential building work valued at more than AUD20,000.
The SAT found that Babylon's failure to obtain building permits and
to have a nominated supervisor and home indemnity insurance meant
that the company had been negligent and incompetent in carrying out
the building services and failed to ensure proper management and
supervision. These are disciplinary matters under the Building
Services (Registration) Act 2011.
Babylon entered liquidation in June 2022 and was not fined by the
SAT. Mr. Razaq became Babylon's director after the company carried
out the five projects, but the SAT found that he should be fined
due to his direct involvement in the building services and as the
key person responsible for the company's management.
In her decision, SAT member Anita King noted Mr Razaq did not
participate in the tribunal proceedings or provide any evidence,
but he had previously admitted to the disciplinary allegations
during a record of interview with Building and Energy.
"The tribunal has taken into consideration the seriousness of the
allegations made and notes that Mohammed Razaq admitted the
conduct," Ms. King stated.
"I surmise that the actions of Mohammed Razaq were either intended
to mislead or were negligent in the carrying out or completion of
the building work . . . The conduct complained of was a serious
departure from the requisite standard expected of a competent
builder and occurred over a significant period of time and over
five sites."
Building and Energy Acting Executive Director Peter Stewart said
unauthorised and unsupervised building work was unacceptable.
"WA's building approval and registration requirements are in place
to ensure community safety through compliance with building
standards," Mr. Stewart said.
"Likewise, operating without home indemnity insurance puts home
owners at significant financial risk if the builder becomes
insolvent.
"Building service providers who attempt to bypass the rules will be
held to account."
CITY GARDEN: Second Creditors' Meeting Set for Oct. 11
------------------------------------------------------
A second meeting of creditors in the proceedings of City Garden
Australia Pty Ltd has been set for Oct. 11, 2023 at 11:00 a.m. via
virtual meeting only.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Oct. 10, 2023 at 4:00 p.m.
Desmond Teng and John Refalo of Byrons Recovery were appointed as
administrators of the company on Sept. 5, 2023.
CLOUGH GROUP: M&R Again Fails to Regain Control of RUC
------------------------------------------------------
Mining Weekly reports that engineering and contracting group Murray
& Roberts (M&R) was unable to regain control of RUC Cementation
Mining Contractors (RUC), the Australian mining services business
it lost when its Australian holding company, Murray & Roberts Pty
Ltd (MPRL), and Clough entered voluntary administration in December
2022.
Mining Weekly relates that M&R has, therefore, started to
capacitate a subsidiary company in Australia, Cementation APAC, to
provide engineering and contracting services to its mining clients
in the Asia-Pacific region.
According to the report, M&R stated in an October 4 update to
shareholders that secured creditors of MPRL had, during a second
creditors meeting held in Australia, approved a Deed of Company
Arrangement, which preserved the option for a full sale or
restructuring transaction to occur in the future.
This approval means M&R is unable to regain control of RUC, Mining
Weekly notes.
About Clough Group
Perth-based Clough Group builds industrial projects in the energy,
resources and infrastructure sector.
On Dec. 5, 2022, Clough's South African owners, Murray & Roberts,
appointed Sal Algeri, Jason Tracy, Glen Kanevsky and David Orr of
of Deloitte as voluntary administrators of Clough Limited and
related entities on Dec. 5, 2022. The related entities are: Murray
& Roberts Pty Ltd, Clough Projects Australia Pty Ltd, Clough
Projects International Pty Ltd, Clough Engineering Pty Ltd, Clough
Projects Pty Ltd, Clough Operations Pty Ltd, Clough Overseas Pty
Ltd, Clough Seam Gas Pty Ltd, Clough Engineering & Integrated
Solutions (CEIS) Pty Ltd, E2o Pty Ltd, and Sharp Resources Pty
Ltd.
On Feb. 3, 2023, Webuild signed the contract with the Deloitte
Administrators of Clough Limited in Australia to acquire Clough
assets.
COMPETITION PRO: Second Creditors' Meeting Set for Oct. 11
----------------------------------------------------------
A second meeting of creditors in the proceedings of Competition Pro
Pty Ltd has been set for Oct. 11, 2023 at 10:30 a.m. at the offices
of Worrells at Suite 2, 63 The Esplanade in Maroochydor.
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 Oct. 10, 2023 at 5:00 p.m.
Paul Eric Nogueira of Worrells was appointed as administrator of
the company on Sept. 5, 2023.
CONQUEST 2023-2: S&P Assigns BB (sf) Rating to Class E Notes
------------------------------------------------------------
S&P Global Ratings assigned its ratings to six classes of prime
residential mortgage-backed securities (RMBS) issued by Perpetual
Trustee Co. Ltd. as trustee of ConQuest 2023-2 Trust. ConQuest
2023-2 Trust is a securitization of prime residential mortgage
loans originated by MyState Bank Ltd.
The ratings reflect:
-- S&P's view of the credit risk of the underlying collateral
portfolio, including the fact that this is a closed portfolio,
which means no further loans will be assigned to the trust after
the closing date.
-- S&P's view that the credit support is sufficient to withstand
the stresses we apply. This credit support comprises note
subordination for all rated notes, excess spread, and mortgage
insurance covering 19.3% of the portfolio.
-- S&P's expectation that the various mechanisms to support
liquidity within the transaction, including an excess revenue
reserve, principal draws mechanism, and an amortizing liquidity
facility equal to 1.00% of the invested amount of all notes are
sufficient under our stress assumptions to ensure timely payment of
interest.
-- The extraordinary expense reserve of A$150,000, funded from day
one by MyState Bank, available to meet extraordinary expenses. The
reserve will be topped up via excess spread if drawn.
-- The benefit of a fixed- to floating-rate interest-rate swap
provided by ING Bank N.V. to hedge the mismatch between receipts
from any fixed-rate mortgage loans and the variable-rate RMBS.
Ratings Assigned
ConQuest 2023-2 Trust
Class A1, A$460.00 million: AAA (sf)
Class AB, A$19.75 million: AAA (sf)
Class B, A$7.00 million: AA (sf)
Class C, A$5.75 million: A (sf)
Class D, A$3.50 million: BBB (sf)
Class E, A$1.55 million: BB (sf)
Class F, A$2.45 million: Not rated
DDSR AUSTRALIA: First Creditors' Meeting Set for Oct. 13
--------------------------------------------------------
A first meeting of the creditors in the proceedings of DDSR
Australia Pty Ltd will be held on Oct. 13, 2023, at 10:30 a.m. via
virtual meeting only.
Mervyn Jonathan Kitay of Worrells was appointed as administrator of
the company on Oct. 3, 2023.
DYNAMITE CONCRETE: Second Creditors' Meeting Set for Oct. 10
------------------------------------------------------------
A second meeting of creditors in the proceedings of Dynamite
Concrete Pty Ltd has been set for Oct. 10, 2023 at 10:30 a.m. at
the offices of Ticcidew Pty Ltd at 463 Scarborough Beach Road in
Osborne Park.
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 Oct. 9, 2023 at 5:00 p.m.
Simon Roger Coad of Ticcidew was appointed as administrator of the
company on Sept. 5, 2023.
KALIUM LAKES: Agrimin Backs Out of Buying Potash Producer
---------------------------------------------------------
The West Australian reports that Agrimin has walked away from a
deal to buy Kalium Lakes, throwing a sale for the collapsed potash
play into further disarray.
The West Australian relates that receivers from McGrathNicol had
announced in September that Agrimin would buy Kalium - which fell
into administration in August - with the intention of restarting
work at the company's Beyondie sulphate-of-potash project in
mid-2024 and pursuing further expansion of it in the second half of
2025.
Kalium Lakes Limited (ASX:KLL) -- https://www.kaliumlakes.com.au/
-- together with its subsidiaries, operates as an exploration and
development company in Australia. It focuses on the development of
100% owned the Beyondie sulphate of potash project, which include
16 granted exploration licenses, two mining leases, and various
miscellaneous licenses covering an area of approximately 1,800
square kilometers located in Western Australia.
Martin Bruce Jones and Matthew David Woods of KPMG were appointed
as administrators of Kalium Lakes Limited, Kalium Lakes
Infrastructure Pty Ltd, and Kalium Lakes Potash Pty Ltd on Aug. 3,
2023.
LIBERTY FUNDING 2023-1: Moody's Gives (P)B2 Rating to Cl. F Notes
-----------------------------------------------------------------
Moody's Investors Service has assigned the following provisional
ratings to the notes to be issued by Liberty Funding Pty Ltd in
respect of Liberty Series 2023-1 SME.
Issuer: Liberty Funding Pty Ltd in respect of the Liberty Series
2023-1 SME
AUD325 million Class A1 Notes, Assigned (P)Aaa (sf)
AUD100 million Class A2 Notes, Assigned (P)Aaa (sf)
AUD25 million Class B Notes, Assigned (P)Aa2 (sf)
AUD15 million Class C Notes, Assigned (P)A2 (sf)
AUD9.5 million Class D Notes, Assigned (P)Baa2 (sf)
AUD13 million Class E Notes, Assigned (P)Ba2 (sf)
AUD5.5 million Class F Notes, Assigned (P)B2 (sf)
The AUD7 million Class G Notes are not rated by Moody's.
The transaction is a securitisation of first-ranking mortgage loans
to self-managed superannuation funds (SMSFs, 70.4%),
small-to-medium enterprises (SMEs, 18.8%) or individuals (10.8%).
The mortgage loans are secured by commercial (64.7%), residential
(33.3%, or both commercial and residential (2.0%) properties
located in Australia. The loans were originated and are serviced by
Liberty Financial Pty Limited (Liberty, unrated).
Liberty is an Australian non-bank lender that started originating
non-conforming residential mortgages in 1997. It subsequently
expanded into prime residential mortgage origination, as well as
auto loans, small commercial mortgage loans and personal loans. As
of June 2023, Liberty had total receivables of AUD13.5 billion.
RATINGS RATIONALE
The provisional ratings take into account, among other factors:
-- The evaluation of the underlying receivables and their expected
performance;
-- The credit enhancement provided by note subordination, the
guarantee fee reserve and excess spread;
-- The legal structure and availability of the liquidity
facility;
-- The experience of Liberty as servicer; and
-- Presence of Perpetual Trustee Company Limited as the back-up
servicer.
According to Moody's, the transaction benefits from various credit
strengths such as low weighted average loan to value (LTV) of the
underlying portfolio and a guarantee fee reserve. However, Moody's
notes that the transaction features some credit weaknesses such as
a proportion of bullet loans (5.3%) and alternative documentation
loans (10.6%) within the portfolio.
Key transactional features are as follows:
-- Class A1 and Class A2 notes benefit from 35% and 15% of
subordination respectively.
-- Principal collections will be at first distributed
sequentially. Starting from the second anniversary from closing,
all notes (excluding the Class G notes) may participate in
proportional principal collections distribution subject to the step
down conditions being satisfied. The step down criteria include,
among others, no charge offs on any of the notes and average
arrears greater than 60 days not exceeding 4.0% of the aggregate
loan amount. Principal paydown will revert to sequential once the
invested amount of the notes is 20.0% or less than that at closing,
or on and following the payment date in September 2027.
-- The guarantee fee reserve, which is unfunded at closing, will
build up to a limit of AUD2.5 million from excess spread. The
reserve will be available to cover (1) any required payment
shortfalls resulting from insufficient interest collections for
that collection period and (2) losses on the loans that are not
covered by excess spread.
Key portfolio features are as follows:
-- The weighted average scheduled LTV of the portfolio is 61.6%,
with only 1.9% of the loans with scheduled LTV above 80.0%
-- Around 5.3% of loans are non-amortising and require a lump sum
repayment at loan maturity, which can be up to five years. Nearly
all of these loans (5.0% out of 5.3%) have been assessed on the
basis of borrower's declaration of their repayment capacity over
the term of the loan, without income verification.
-- Around 2.1% of the loans were granted to borrowers with prior
credit impairment (default, judgement or bankruptcy).
Key model and portfolio assumptions:
Due to the mixed nature of the pool, Moody's categorized it into
SME and residential loan sub-pools, and arrived at the following
assumptions for each sub-pool:
-- For the SME sub-pool, the portfolio credit enhancement (PCE) is
21.3% and median expected loss is 2.7%.
-- For the residential loan sub-pool, Moody's MILAN Stressed Loss
is 6.1% and median expected loss is 0.80%.
The PCE and MILAN Stressed Loss for the SME and residential loan
sub-pools respectively capture the loss Moody's expect the
portfolios to suffer in the event of a severe recessionary
scenario. The Portfolio EL for each sub-pool represents a stressed,
through-the-cycle expected loss relative to Australian historical
data.
The SME sub-pool, representing 62.4% of the overall portfolio,
primarily includes loans to company borrowers and SMSFs secured by
commercial properties. The residential loan sub-pool, representing
37.6% of the overall portfolio, primarily includes loans to
individuals.
Methodology Underlying the Rating Action:
The methodologies used in these ratings were "Residential
Mortgage-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 rapid
build-up of credit enhancement, due to sequential amortisation, or
better-than-expected collateral performance. The Australian
macroeconomic conditions and the housing market are primary drivers
of performance.
A factor that could lead to a downgrade of the notes is
worse-than-expected collateral performance. Other reasons that
could lead to a downgrade include poor servicing, error on the part
of transaction parties, deterioration in credit quality of
transaction counterparties, fraud, or a lack of transactional
governance.
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C H I N A
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CHINA EVERGRANDE: Crisis Tests Beijing's Fallout Management
-----------------------------------------------------------
Reuters reports that as developer China Evergrande Group lurched
from one crisis to another over the past two years, Beijing avoided
directly intervening to rescue what was not too long ago considered
one of the country's "too big to fail" enterprises.
With the world's most indebted developer now standing at the
precipice after authorities launched a criminal investigation into
its billionaire founder, some creditors, investors and analysts are
now betting on authorities stepping in to manage the fallout,
Reuters says.
According to Reuters, a messy collapse of the property giant could
rip through the already-sputtering economy, with hundreds of
thousands of unfinished homes across the country and roughly $300
billion worth of liabilities at home in China alone.
Despite a growing number of Chinese property developers having
defaulted on debt obligations since a liquidity crisis hit the
sector in 2021, Beijing has not directly stepped in to bail out any
firm so far, the report notes.
Reuters says the prospects of Evergrande's offshore debt
restructuring plan, key to its survival, as well as its overall
business have been clouded by the criminal investigation into
founder and chairman Hui Ka Yan.
Reuters relates that the probe suggests debt revamp efforts led by
Hui have been rejected by the central government, which will now
step in to take control and formulate new plans, said Xin Sun,
senior lecturer in Chinese and East Asian Business at King's
College London.
"The (investigation into Hui) clearly shows that Chinese
policymakers prioritise political considerations to economic ones
in dealing with Evergrande," the report quotes Xin as saying. "From
a political perspective, the government needs to ensure the company
and its owners paying a heavy price for causing China's real estate
crisis and facing due punishment. Any restructuring can only happen
after this political responsibility being taken."
Evergrande has contract liabilities - payments made in advance from
homebuyers - of CNY604 billion (US$83 billion), which is equivalent
to around 600,000 housing units, Reuters discloses citing a Gavekal
Dragonomics report.
Beijing has made the completion and delivery of homes a top
priority after the proliferation of unfinished apartments across
the country sparked unprecedented collective disobedience in June
last year, Reuters recalls.
"The government's priority will clearly be to deliver unsold and
unfinished housing to homebuyers," said Christopher Beddor, deputy
director of China research at Gavekal Dragonomics, referring to the
Evergrande situation, says the report. "You don't need a formal
government takeover, or even a SOE white-knight investor, for the
government to start exerting massive influence over the company's
decisions, or for the entire industry to become more state-owned."
About China Evergrande
China Evergrande Group is an integrated residential property
developer. The Company, through its subsidiaries, operates in
property development, investment, management, finance, internet,
health, culture, and tourism markets.
As reported in the Troubled Company Reporter-Asia Pacific on Aug.
18, 2023, China Evergrande Group, the second largest real estate
developer in China, and certain of its affiliates sought creditor
protection in the United States under Chapter 15 of the Bankruptcy
Code (Bankr. S.D.N.Y. Lead Case No. 23-11332) on Aug. 17.
Evergrande, widely known as the most leveraged company in the
world, and its affiliates are asking the U.S. Bankruptcy Court for
the Southern District of New York for recognition of foreign
proceedings as "foreign main" proceeding under Chapter 15.
Evergrande is in the midst of a highly complex restructuring of
around $20 billion in offshore debt. In total, the Company has
more than $300 billion in liabilities.
Evergrande is incorporated in the Cayman Islands as an exempted
company with limited liability, with its principal place of
business located at 15th Floor, YF Life Centre, 38 Gloucester Road,
Wanchai, Hong Kong. It is subject to a restructuring proceeding
entitled In the Matter of China Evergrande Group, concerning a
scheme of arrangement between Evergrande and certain Scheme
Creditors pursuant to the relevant provisions of the Hong Kong
Companies Ordinance (Chapter 622 of the Laws of Hong Kong),
currently pending before the High Court of Hong Kong (Case Number
HCMP 1091/2023.
Affiliate Tianji Holding Limited is incorporated in Hong Kong as a
limited liability company, with its principal place of business
located at 17th Floor, One Island East, Taikoo Place, 18 Westlands
Road, Quarry Bay, Hong Kong. Tianji is subject to a restructuring
proceeding entitled In the Matter of Tianji Holding Limited,
concerning a scheme of arrangement between Tianji and certain
Scheme Creditors, pursuant to the relevant provisions of the Hong
Kong Companies Ordinance and currently pending before the Hong Kong
Court (Case Number HCMP 1090/2023).
Affiliate Scenery Journey Limited is incorporated in the British
Virgin Islands as a limited liability company, with its principal
place of business located at 2nd Floor Water's Edge Building,
Wickham's Cay II, Road Town, Tortola, BVI. Scenery Journey is
subject to a restructuring proceeding entitled In the Matter of
Scenery Journey Limited, concerning a scheme of arrangement between
Scenery Journey and certain Scheme Creditors, pursuant to section
179A of the BVI Business Companies Act, 2004, and currently pending
before the High Court of the Eastern Caribbean Supreme Court (Case
Number BVIHCOM 2023/0076).
U.S. Bankruptcy Judge Michael E Wiles presides over the Chapter 15
proceedings.
Sidley Austin is the Hong Kong Counsel to Evergrande and Tianji.
Maples BVI is the British Virgin Island Counsel to Scenery Journey.
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I N D I A
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CHALAPATHI EDUCATION: ICRA Keeps B+ Ratings in Not Cooperating
--------------------------------------------------------------
ICRA has kept the long-term rating of Chalapathi Education Society
in the 'Issuer Not Cooperating' category. The rating is denoted as
[ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 10.21 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term- 2.60 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 3.19 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Chalapathi Educational Society (CES) was established in 1995 as a
non-profit society by its chief promoter Mr. Y.V. Anjaneyulu. The
society operates five institutions including Engineering
institutes, Pharmacy College, Degree college and Junior college.
The establishments of CES, namely, Chalapathi Institute of
Engineering & Technology (CIET), Chalapathi Institute of Technology
(CIT), Chalapathi Institute of Pharmaceutical Sciences (CIPS),
Chalapathi Degree College (CDC) and Chalapathi Junior College (CJC)
are based in Guntur, Andhra Pradesh. The colleges are located in
Guntur, Andhra Pradesh (AP) and are well connected by bus or train
with Vijayawada (40 min), Hyderabad (5.00 hrs.) and Chennai (7
hrs.).
CHOUHAN AUTOMOBILES: CARE Keeps C Debt Rating in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Chouhan
Automobiles LLP (CAL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 20.50 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated August 30,
2022, placed the rating(s) of CAL under the ‘issuer
non-cooperating' category as CAL 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. CAL
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).
Bhilai (Chhattisgarh) based, Chouhan Automobiles LLP (CAL) was
established as a partnership firm in June 2017 and the firm has
been engaged in dealership business of automobiles.
CREVITA GRANITO: ICRA Keeps B+ Debt Rating in Not Cooperating
-------------------------------------------------------------
ICRA has kept the long-term and short-term ratings for the bank
facilities of Crevita Granito Pvt. Ltd. in the 'Issuer Not
Cooperating' category. The ratings are denoted as "[ICRA]B+
(Stable)/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 10.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Short Term- 4.00 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
Others to remain under 'Issuer Not
Cooperating' category
Long Term- 25.50 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Incorporated in 2016, as a private limited company, CGPL commenced
commercial production in January, 2017. Its product profile
comprises double charged vitrified tiles of 600X600 mm and 600X1200
mm. CGPL's manufacturing unit is located at Morbi, the ceramic tile
manufacturing hub of Gujarat, and is equipped to manufacture 56,160
metric tonne (MT) of tiles per annum.
DCR DISTILLERY: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of DCR
Distillery Private Limited (DDPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 18.40 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 9,
2022, placed the rating(s) of DDPL under the ‘issuer
non-cooperating' category as DDPL 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. DDPL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated July 26, 2023, August 5, 2023, August 15, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Sagar-based (Madhya Pradesh) DCR Distillery Private Limited (DDPL)
was incorporated in November, 2010 by Mr. Gajendra Singh Rathore
along with his family members with an objective to set up a plant
for manufacturing of Extra Neutral Alcohol (ENA) and Rectified
Spirit (RS). The manufacturing unit of the firm is located in
Mehar, Sagar - Madhya Pradesh.
EMBEE AGRO: CARE Keeps B- Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Embee Agro
Food Industries Private Limited (EAFIPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 20.33 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 10,
2022, placed the rating(s) of EAFIPL under the ‘issuer
non-cooperating' category as EAFIPL 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.
EAFIPL continues to be non-cooperative despite repeated requests
for submission of information through e-mails, phone calls and a
letter/email dated June 26, 2023, July 6, 2023, July 16, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Embee Agro Food Industries Private Limited (EAFIPL) was
incorporated in 2005 as a private limited company promoted by Mr B.
Somashekhar Gowda and other three directors. All the directors
belong to same family. EAFIPL erstwhile known as Magnur Syndicate,
a partnership firm established in the year 1999 and promoted by Mr
B. Somashekahar Gowda and other three partners. Since inception,
the company is engaged in rice milling and processing, however, the
processing activity closed in August 2012 since pollution control
board insisted to close the unit in that location. Therefore, the
company entered into trading of paddy and rice. Later, the company
purchased a 7 acres land at Karnataka Industrial Area Development
Board (KIADB) to set up a processing unit. The main raw material;
paddy, is directly procured from local farmers located in and
around Davangere and nearby locations during the off season. The
major sales of the company are in Karnataka and Maharashtra
regions.
FORTUNE FOAM: ICRA Keeps B+ Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has kept the long-term and short-term ratings for the bank
facilities of Fortune Foam Pvt. Ltd. in the 'Issuer Not
Cooperating' category. The ratings are denoted as "[ICRA]B+
(Stable)/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 18.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 9.51 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term/ 4.49 [ICRA]B+ (Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain
under issuer not cooperating
category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Fortune Foam Private Limited (FFPL) was incorporated in 2003 and is
engaged in the manufacturing of PU (Polyurethane) foam and
(Expanded Polyethylene Foam) used for making mattresses, pillows,
cushions, leather jackets, roll foam for lamination of apparels.
Besides foam, the company also manufactures mattresses and sells
them under "Sleepkraft" brand. FFPL started its commercial
production from August 2015. FFPL has manufacturing capacity of
6,000 MTPA for foam at its manufacturing facility located in
Hyderabad.
GAKHIL RESORT: CARE Keeps C Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Gakhil
Resort and Spa (GRS) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated August 19,
2022, placed the rating(s) of GRS under the ‘issuer
non-cooperating' category as GRS 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. GRS
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated July 5, 2023, July 15, 2023, July 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).
Gakhil Resort and Spa (GRS) is a proprietorship entity established
on April 2015 to initiate a hotel business and carrying on
activities related to the hotel industry at Bojoghari, Gangtok in
Sikkim.
GMR HYDERABAD: Fitch Affirms LongTerm IDR at 'BB+', Outlook Stable
------------------------------------------------------------------
Fitch Ratings has affirmed GMR Hyderabad International Airport
Limited's (GHIAL) Long-Term Issuer Default Rating (IDR) and
outstanding senior secured notes at 'BB+'. The Outlook is Stable.
RATING RATIONALE
The rating affirmation reflects the recovery in traffic from the
Covid-19 pandemic in Hyderabad's growing catchment area, GHIAL's
ability to reach near completion of its expansion capex and a
steadily improving regulatory environment with the implementation
of third control period (CP3) tariffs from the financial year ended
March 2022 (FY22) onwards. The Outlook reflects adequate headroom
at the current rating level with rating case leverage declining to
about 5.5x in FY26 from 10.4x in FY23.
Furthermore, GHIAL's partial refinance of its senior secured note
due in 2024 and 2026 with domestic non-convertible debentures (NCD)
of equivalent value at a lower rate of interest, with a tenor of 10
years and amortisation starting in the sixth year, is an
improvement to its debt maturity profile.
KEY RATING DRIVERS
Strong Passenger Growth Expectations - Revenue Risk - Volume - High
Midrange
Fitch expects total passenger traffic at GHIAL to reach 24 million
in FY24, against 21 million in FY23. Total passenger traffic in
FY23 was 97% of the FY20 level on a strong rebound in domestic
passengers. Domestic passengers were about 80% of the total mix in
FY18-FY20. Total passenger traffic in 5MFY23 stood at 10.3 million,
surpassing the pre-pandemic high of 9.2 million in 5MFY20.
International passenger traffic in FY23 reached 87% of the
pre-Covid high, and continued to improve in 5MFY24.
GHIAL is exposed to significant carrier concentration risk with
IndiGo dominating the Indian domestic market. Still, the airport is
a major international airport for the states of Telangana and
Andhra Pradesh with limited competition from other cities and other
modes of traffic. The airport had CAGR of 12.8% in passengers from
its first year of commercial operations in 2009 until the
pandemic.
Approved Increase in Regulated Tariffs - Revenue Risk - Price -
Midrange
Tariffs under CP3 (FY22-FY26) were approved on 31 August 2021 under
GHIAL's hybrid till regulatory framework, with 30% non-aeronautical
revenue used for cross-subsidisation with effect from FY22. The
user development fee, which is majority of the aeronautical
revenue, was increased by around 100%, further supporting the
increased capacity expansion. A number of pending legal and
regulatory issues were also dealt with under CP3, thereby reducing
future uncertainty.
However, INR7 billion of aeronautical revenue out of a total of
INR48 billion has been deferred to the fourth control period (CP4)
for recovery along with the carrying cost. At the same time, INR67
billion out of the INR75 billion of expansion capex has been
allowed in CP3 with the rest to be considered in CP4, based on
actual spend.
Major Expansion Capex Near Final Completion - Infrastructure Dev. &
Renewal - Midrange
Its rating case does not expect any significant expansion in capex
in the medium term, following the completion of the current
expansionary capex cycle. The ratings reflect the implementation of
the capex plan by FY24 without any significant time and cost
overruns. More than 90% of the physical work is completed and the
remaining work should be completed within FY24, according to
GHIAL's management. The airport was operating above design capacity
before Covid, with a utilisation ratio above 170%. Management's
current expansion plan can handle a capacity of 34 million
passengers.
Protection for Debtholders, Manageable Refinance Risk - Debt
Structure - Senior - Midrange
GHIAL's total debt comprises three US dollar senior secured notes
and two rupee non-convertible debentures that all share security on
pari passu basis. The US dollar bonds have protective structural
covenants including a defined cash waterfall, restrictions on
dividends and a fixed-charge cover ratio test for additional debt.
The proceeds from the two rupee debentures were used to partially
prepay the two US dollar bonds due in 2024 and 2026. A long
concession tenor until 2068, well-spread maturity profile and
healthy financial profile mitigate refinancing risk.
Financial Profile
The base case assumes traffic will reach pre-pandemic levels before
end-2023 and GHIAL will reach its maximum capacity of 34 million
passengers by FY26. The traffic assumptions are broadly in line
with management estimates. Only contracted revenue from commercial
property development has been considered. The net debt/EBITDA ratio
is around 10.4x in FY23, before it declines to 6.5x by FY24 and
5.0x by FY25.
The rating case also assumes traffic will reach pre-pandemic levels
before end-2023. However, growth beyond 2023 will be slower and
GHIAL will reach its maximum capacity by FY28. Only contracted
revenue from commercial property development has been considered.
The net debt/EBITDA ratio declines to 7.5x by FY24 and about 6.0x
by FY25.
PEER GROUP
Mumbai International Airport Limited (MIAL, senior secured rating:
BB+/Stable) is one of GHIAL's closest Indian peer. MIAL has a
larger catchment area than GHIAL, as Mumbai is a bigger city than
Hyderabad. Fitch assesses the price risk for both airport operators
as 'Midrange'. GHIAL's sustained leverage is estimated to be a turn
higher than that of MIAL. However, the sharp deleveraging beyond
capex expansion justifies similar credit assessment despite GHIAL's
lower volume risk assessment. GHIAL's leverage in FY25 after capex
expansion is 6.1x, similar to MIAL's leverage of 6.3x in the same
year.
GHIAL can also be compared with Delhi International Airport Limited
(DIAL, BB-/Stable) DIAL has a 'High Stronger' volume risk
assessment due to its strategic location and being the largest
airport in the country. Both airports have a 'Midrange' price risk
assessment. GHIAL has received the CP3 order, effective from FY22,
while DIAL's next control period is due soon, however, the base
airport charges mitigate any downside risk to the aeronautical
tariff determination.
DIAL's leverage will remain high in the short term, before easing
to around 9.0x by FY27, relative to GHIAL's leverage of 10.4x in
FY23, which declines to about 5.5x in FY26. The high leverage along
with uncertainty in revenue share deferment has resulted in a
two-notch differential. DIAL's higher leverage is compensated
partially by its larger catchment area and its volume risk
assessment. The debt structure is similar for both airports, mainly
consisting of US dollar bullet notes with cash waterfall
mechanisms.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Fitch forecast net debt/EBITDA above 7.0x for a sustained
period;
- Fitch forecast EBITDA/net interest materially below 2.0x.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Fitch forecast net debt/EBITDA below 5.0x for a sustained
period;
- Fitch forecast EBITDA/net interest sustained above 2.0x.
CREDIT UPDATE
Traffic Performance: Total passenger traffic for 5MFY23 stood at
10.3 million, surpassing the pre-pandemic high of 9.2 million in
5MFY20. The growth is led by domestic passengers, which have
historically accounted for about 80% (FY18-FY20) of the total
passenger mix.
Financial Performance: All of GHIAL's business segments improved
significantly after the pandemic.
- Revenue increased by around 60% to INR19.1 billion in FY23 on the
strong traffic recovery, against INR11.7 billion in FY22. In
1QFY24, revenue increased by 44% yoy to INR6 billion.
- EBITDA increased by 111% in FY23 to INR6.7 billion. In 1QFY24,
EBITDA increased by 67% yoy to INR3.8 billion.
Liquidity Position: GHIAL had cash and cash equivalents (including
financial investments) of around INR19 billion as of July 2023.
ESG CONSIDERATIONS
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Prior
----------- ------ -----
GMR Hyderabad
International
Airport Limited LT IDR BB+ Affirmed BB+
GMR Hyderabad
International
Airport Limited
/Debt/1 LT LT BB+ Affirmed BB+
GO FIRST: India Amends Insolvency Rules Amid Jet Leasing Dispute
----------------------------------------------------------------
Reuters reports that India has amended its insolvency law to
exclude leased aircraft from assets that can be frozen, a
long-awaited move expected to shore up the financing of its
fast-growing airline industry by addressing discrepancies between
global and local rules.
Reuters relates that the rule change, disclosed in a government
notice on Oct. 4, aims to bring India's bankruptcy laws into line
with a treaty protecting the rights of foreign lessors, following a
dispute over the bankruptcy of budget airline Go First.
According to Reuters, aircraft lessors of Go First were blocked
from repossessing planes due to a moratorium imposed by Indian
courts, prompting the world's second-largest lessor, SMBC Aviation
Capital, to warn the decision would shake the confidence of the
aviation industry at a time when India is acquiring hundreds of new
jets.
The notice said some provisions of the Indian Bankruptcy Code would
no longer apply to transactions in aircraft, aircraft engines,
airframes and helicopters, Reuters relays.
Reuters says the 2001 Cape Town Convention is designed to encourage
lessors that control about half the world's fleet to rent jets to
airlines in exchange for a mechanism allowing them to take back
their planes relatively easily whenever airlines default.
Although India signed the treaty in 2008, experts had said there
was no local legislation enforcing it, putting the international
framework at odds with local courts.
A global aviation leasing watchdog last month cut India's
compliance rating, threatening airlines with costlier financing.
"With this, India can hope to somewhat repair the reputation it has
acquired as a risky country to lease aircraft and engine to,"
Ramesh Vaidyanathan, managing partner of law firm BTG Advaya, told
Reuters.
Reuters relates that industry experts had voiced concerns that the
freezing of Go First planes would weigh on new deals, forcing
domestic carriers to shell out higher deposits or higher monthly
rents.
"Bankruptcy code restrictions have now been lowered to provide more
flexibility for lessors," Reuters quotes Rakhee Biswas, managing
partner at Spaviatech Law, as saying.
In June, the country's aviation secretary told Reuters India was
working to resolve discrepancies between global aircraft leasing
rules and its national bankruptcy laws.
The impact of the announcement on Oct. 4 on the Go First case is
likely to be discussed during court proceedings where the foreign
lessors are seeking to repossess their planes, according to people
involved in the case, adds Reuters.
About Go First
Go First, formerly known as GoAir, was an Indian ultra-low-cost
airline based in Mumbai, Maharashtra. Go First was incorporated in
April 2004 as GoAir and commenced flight operations in November the
following year. Its inaugural flight was from Mumbai to Ahmedabad.
The airline is owned by the Wadia Group.
Go First filed an application for voluntary insolvency resolution
proceedings before National Company Law Tribunal (NCLT) on May 2,
2023.
The company said the filing with the NCLT comes after Pratt &
Whitney, the exclusive engine supplier for the airline's Airbus
A320neo aircraft fleet, refused to comply with an order to release
engines to the airline that would have allowed it return to full
operations.
Go First owes INR6,521 crore to its financial creditors, Bank of
Baroda, IDBI Bank, and Deutsche Bank. The airline has a total
liability of about INR11,463 crore to banks, other creditors,
vendors, and others.
On May 10, 2023, the NCLT accepted Go First's voluntary insolvency
petition. The NCLT bench appointed Abhilash Lal as the interim
resolution professional to look after the affairs of Go First and
also suspended its board as part of the insolvency resolution
process.
ICE TOUCH: CARE Keeps C Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Ice Touch
Resort Private Limited (ITRPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated September 22,
2022, placed the rating(s) of ITRPL under the ‘issuer
non-cooperating' category as ITRPL 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. ITRPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated August 8, 2023, August 18,
2023, September 19, 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).
New Delhi based, Ice Touch Resorts Private Limited (ITRL) was
incorporated in 2005. The company is currently promoted by Mr.
Ramesh Chander Khanna, Mr. Rakesh Sehgal, Mr. Vinod Nagrath, Mr.
Ghanshyam Kapoor and Mr. Rajinder Kumar Malhotra. ITRL is setting
up a four-star hotel "Radisson Blu" in Kufri near Shimla. The
proposed hotel is being developed on a land parcel of 7,700 sq
mtrs. The hotel would consist of 2 main blocks & conference block
wherein, the main blocks will consist of 76 deluxe rooms, reception
area, lobby, restaurant etc.
ICOAT PROJECTS: CARE Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of ICoat
Projects Private Limited (IPPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 4.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 8.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated August 30,
2022, placed the rating(s) of IPPL under the ‘issuer
non-cooperating' category as IPPL 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. IPPL
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).
Icoat Projects Private Limited (IPPL) was incorporated in the year
2007 (erstwhile Icoat technologies India Pvt. Ltd, the company's
name has changed to current nomenclature IPPL in 2012). IPPL is
promoted by Mrs Pranitha Kumari, Mr D.Vishnu Vardhan Reddy and Mr
B. Srinivas Rao. The company is engaged in the trading of modular
wall panels and ceiling panels and also provides erection and
installation works for transmission towers and substations within
the range of 33kv to 132kv. Furthermore, the company also
undertakes electrical works for commercial buildings government
while participating in tenders.
JAGADISHWAR COLD: CARE Keeps B- Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Jagadishwar
Cold Storage Private Limited (JCSPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.50 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 30,
2022, placed the rating(s) of JCSPL under the ‘issuer
non-cooperating' category as JCSPL 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. JCSPL 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).
Jagadishwar Cold Storage Private Limited. (JCSPL), incorporated in
the year 2001, is a Burdwan (West Bengal) based company, promoted
by the Kundu 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 231,810 quintals in Bankura
district of West Bengal. Mr. Naba Kumar Kundu (Director) looks
after overall management of the company. Mr. Naba Kumar Kundu has
more than two decades of experience in cold storage business and is
supported by other directors and a team of experienced
professionals who have rich experience in the same line of
business.
JALARAM GINNING: CARE Keeps B- Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Jalaram
Ginning and Pressing (JGP) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.41 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated September 20,
2022, placed the rating(s) of JGP under the ‘issuer
non-cooperating' category as JGP 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. JGP
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated August 6, 2023, August 16, 2023, August 26,
2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Wardha (Maharashtra) based, JGP, started with its commercial
production in November 2011 as a partnership firm. The firm is
engaged in the business of cotton ginning and cotton oil
extraction.
JET AIRWAYS: Creditors Question Source of Jalan-Kalrock Deposit
---------------------------------------------------------------
Press Trust of India reports that the creditors of the grounded
carrier Jet Airways on Oct. 4 raised questions over the source of
INR200 crore deposited by the Jalan-Kalrock Consortium before the
insolvency appellate tribunal NCLAT and said it does not align with
the resolution plan.
Additional Solicitor General N Venkataraman, representing lenders
including SBI and other banks, told the National Company Law
Appellate Tribunal (NCLAT) that there are apprehensions about the
source of funds, which deposited money for Jalan-Kalrock
Consortium's (JKC), PTI relates.
"The payment is not compliant with the resolution plan as it
mandates that the money is to be paid through JKC," ASG submitted
before a three-member NCLAT bench headed by Chairperson Justice
Ashok Bhushan.
He also alleged that there are apprehensions the money could have
been laundered.
PTI says the lenders sought some time to file a reply over the
JKC's compliance affidavit, which was accepted by the appellate
tribunal.
Meanwhile, senior advocate Krishnendu Datta, representing the
consortium, said only a part of the money came from another source
while the majority of the amount was paid by Murari Lal Jalan, PTI
reports.
He further alleged, "Lenders are objecting to every move since they
do not want to transfer Jet's ownership."
According to PTI, NCLAT has directed listing the matter for the
next hearing on October 12.
JKC, the winning bidder for the airline, which stopped flying in
April 2019 and later underwent an insolvency resolution process,
had to pay INR350 crore to the lenders by August 31, PTI says.
Earlier on August 28, NCLAT had extended the time till September 30
for Jalan-Kalrock Consortium for payment of INR350 crore to the
lenders of the bankrupt Jet Airways.
About Jet Airways
Based in Mumbai, India, Jet Airways (India) Limited was one of
India's top airlines founded by Naresh Goyal. It provided
passenger and cargo air transportation services as well aircraft
leasing services. It operated flights to 66 destinations in India
and international countries.
Jet Airways on April 17, 2019, halted all flight operations after
its lenders rejected its plea for emergency funds.
On June 20, 2019, the National Company Law Tribunal (NCLT), Mumbai
Bench, accepted an insolvency petition against Jet Airways filed by
its creditors as they attempt to recover some of their dues.
Ashish Chhawchharia of Grant Thornton India has been named as the
resolution professional in the case. Law firm Cyril Amarchand
Mangaldas represented the interests of the lenders' consortium,
according to a Reuters report.
Creditors have filed claims worth INR30,907 crore, according to
Financial Express. The RP has so far admitted claims worth over
INR14,000 crore.
In October 2020, the airline's Committee of Creditors (CoC)
approved the revival plan submitted by the consortium of
Dubai-based Murari Lal Jalan and the UK's Kalrock Capital.
In 2021, the NCLT approved the Jalan-Kalrock consortium's
resolution plan for the troubled carrier.
JP AGRO: CARE Keeps D Debt Rating in Not Cooperating Category
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of JP Agro
(JA) continues to remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated September 20,
2022, placed the rating(s) of JA under the ‘issuer
non-cooperating' category as JA 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.
JA continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated August 6, 2023, August 16, 2023, August 26,
2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
JP Agro (JPA) was established as a proprietorship concern in the
year 2015. The firm is engaged in trading of agro commodities as
wheat, soya bean, pulses and rice. The group companies JPK
Constructions Private Limited and Pardeshi Constructions Private
Limited are engaged in construction business, whereas Desire is
distributor of consumer electronic products.
JSW INFRASTRUCTURE: Moody's Ups CFR & Senior Secured Bonds to Ba1
-----------------------------------------------------------------
Moody's Investors Service has upgraded JSW Infrastructure Limited's
(JSWIL) corporate family rating and senior secured bond rating to
Ba1 from Ba2, and changed the outlook to stable from positive.
"The upgrade is driven by a combination of the substantial capital
raised from JSWIL's initial public offering (IPO) and the growth
momentum of cargo volumes at both its existing and new ports.
Moody's expect JSWIL to continue its solid operating performance,
with its credit metrics consistently within the Ba1 range," says
Erman Zhang, a Moody's Analyst.
RATINGS RATIONALE
JSWIL's IPO, which concluded on October 3, 2023, has generated
INR28 billion in new funds for JSWIL. As outlined in the
prospectus, approximately 31% of these proceeds will be allocated
toward debt repayment, while another 42% will support capital
expenditure for upgrades and expansions at JSWIL's flagship Jaigarh
port and its first container terminal, the JSW Mangalore Container
Terminal.
The debt reduction is accompanied by the company's solid top-line
performance, with a growth rate of 50% in fiscal 2023, which ends
March 31, 2023, up from 46% in fiscal 2022. The growth was
primarily due to the addition of new cargo from Jaigarh and
Dharamtar ports, driven by JSW Steel Limited's planned capacity
expansion near these ports, as well as by the ramp-up of new
terminal assets Paradip East Quay Coal Terminal and New Mangalore
Container Terminal.
As a result, Moody's projects that JSWIL's funds from operation
(FFO)/debt will be consistently within the 17%-23% range over the
next three years, a level supporting the upgrade.
At the same time, JSWIL's cash flow predictability will likely
continue to benefit from its take-or-pay contracts, which brought
in more than 40% of its revenue in fiscal 2023. The company's
credit quality will also be supported by its ports' long-life
concessions, which have a weighted average balance concession life
of approximately 25 years as of June 30, 2023. Tariff arrangements
at most ports are subject to adjustments based on India's Wholesale
Price Index (WPI), which serve to counterbalance incremental costs
arising from inflation. Furthermore, approximately USD65
million-USD90 million of JSWIL's annual tariffs, which pertain
primarily to vessel handling and berth hire charges, are
denominated in USD and will support the company's ability to
service its USD-denominated debt.
JSWIL faces concentration risks due to its reliance on the JSW
group customers, as approximately 63% of its total cargo handled in
India is associated with related parties, primarily with JSW Steel
Limited (JSWSL, Ba1 stable), as of June 30, 2023. This
group-related cargo is projected to continue dominating JSWIL's
cargo mix over the next five years. However, it is expected that
this concentration will gradually decrease and the cargo mix will
become more balanced in the long term, as additional cargo from
newly developed ports begins to contribute to the total cargo
volume.
JSWIL is also exposed to environmental, social and governance (ESG)
risks driven by its reliance on carbon-intensive cargo, which make
up the majority of its portfolio. Most of these cargoes are
associated with off-takers in carbon-intensive industries such as
steel production, thermal power generation and cement
manufacturing. Although the company is gradually increasing the
proportion of less carbon-intensive cargo as it expands its
container capacity, carbon-intensive cargo such as coal and iron
ore will continue to dominate its portfolio for at least the next
five to ten years. JSWIL's credit profile could be negatively
impacted if its port operations are affected by incremental
environmental regulations.
JSWIL will likely continue its expansionary growth and substantial
capital expenditure, corresponding with the significant demand for
infrastructure and rapid GDP growth in India. Moody's forecasts the
company's average capital spending will rise to approximately INR18
billion-20 billion over the next three years. This high level of
capital expenditure could subject the company to risks associated
with project execution and operational ramp-ups, while also
increasing its funding needs. Furthermore, new port concession
agreements that involve moderate to high revenue sharing could
potentially affect the company's profit margins.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The stable rating outlook reflects Moody's expectation that JSWIL
will continue to achieve mid-to-high single digit growth as the
throughput ramps up over the next 12-18 months, and that it will
keep its capital spending within Moody's expectations.
Moody's could upgrade JSWIL's ratings if the company's FFO/debt
rises above 25% on a sustained basis while at the same time, the
company achieves material diversification in relation to both third
party revenue and carbon-intensive cargo.
Conversely, Moody's could downgrade JSWIL's rating if (1) the
company pursues an aggressive debt-funded capital spending program
that introduces additional regulatory or cost overrun risks; and
(2) its operational performance weakens due to ramp-up risks that
lead to a lower-than-expected throughput growth. In particular,
Moody's would consider a downgrade if the company's FFO/debt falls
below 15% on a sustained basis.
The principal methodology used in these ratings was Privately
Managed Ports published in April 2023.
JSW Infrastructure Limited (JSWIL) is a leading port operator in
India with nine operational port concessions around the country. As
of June 30, 2023, the company's total port handling capacity was
around 199 million tonnes per annum (MTPA), including an operation
and maintenance concession for two terminals of 41 MTPA capacity in
the United Arab Emirates.
Post its IPO, JSWIL is 86% owned by the promoter and promoter
group, while the public and an employees' trust hold 11% and 3%
respectively. Related JSW entities, such as JSW Steel Limited and
JSW Energy Limited, are key off-takers for JSWIL.
KALPANA BIRI: CARE Lowers Rating on INR12cr LT Loan to B
--------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Kalpana Biri Manufacturing Co Private Limited (KBMCPL), as:
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 and
Revised from CARE B+; Stable
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated August 18,
2022, placed the rating(s) of KBMCPL under the ‘issuer
non-cooperating' category as KBMCPL 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. KBMCPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated July 4, 2023, July 14, 2023,
July 24, 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 KBMCPL have been
revised on account of non-availability of requisite information.
Analytical approach: Standalone
Outlook: Stable
Detailed description of the key rating drivers
Kalpana Biri Manufacturing Company Private Limited (KBMCPL) was
incorporated in 1990 by Biswas family of Murshidabad, West Bengal.
The company is engaged in manufacturing of Bidi and retailing of
electronics product. The promoters are engaged in bidi
manufacturing for more than five decades and ventured into
retailing of electronics product in 2002. The company has four bidi
manufacturing facility in Murshidabad, West Bengal. The company
mainly sells bidi under four brands - Kalpana, Bharat, Manu and
Purba. The company operates 7 retail showrooms in New Delhi, having
a cumulative area of 18,475 square feet.
KIRPA RAM: CARE Keeps B Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Kirpa Ram
Dairy Private Limited (KRDPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 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 September 26,
2022, placed the rating(s) of KRDPL under the ‘issuer
non-cooperating' category as KRDPL 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. KRDPL continues to be noncooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated August 12, 2023, August 22,
2023, September 21, 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).
KRDPL was incorporated in June 2007. The company, with the
promoters and their relatives/associates having 100% equity
holding, is promoted by Gupta family which includes Mr Sant Kumar
Gupta, his wife Mrs Sushma Rani and their two sons, Mr Amit Gupta
and Mr Sumit Kumar Gupta. It is engaged in processing of various
dairy products like skimmed milk Powder (SMP), desi ghee, white
butter, milk cream, etc. at its manufacturing facility located at
Ghaziabad, Uttar Pradesh.
LEELA KRISHNA: CARE Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Leela
Krishna Automobiles Private Limited (LKAPL) continues to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 29.04 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated August 24,
2022, placed the rating(s) of LKAPL under the ‘issuer
non-cooperating' category as LKAPL 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. LKAPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated July 10, 2023, July 20, 2023,
July 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).
Leela Krishna Automobiles Private Limited (LKAPL) belongs to Radha
Group Toyota of Vijayawada, Andhra Pradesh established in 1964 as a
trading organization. Radha Group Toyota is engaged in the business
of sales and service of passenger vehicles of Toyota Kirloskar
Motors Pvt Limited (TKML) and it is an authorized dealer of TKML.
The group was promoted by Mr. M Subrahmanyam (Chairman), who has
more than five decades of experience in trading and more than two
decades of experience in automobile industry. Mr. M Srinivas
(Managing Director) has more than two decades of experience in
automobile industry. The group comprises of four automobile
companies namely Radha Krishna Automobiles Private Limited,
Radhamadhav Automobiles Private Limited, Leela Krishna Automobiles
Private Limited and Yashodakrishna Automobiles Private Limited
located in Andhra Pradesh and Telangana. These four companies are
in to similar line of business catering to different regions in
both states. RMAPL and LKAPL are operating in the state of Andhra
Pradesh, whereas RKAPL and YKAPL are operating in the state of
Telangana with a total of 15 showrooms in both the states.
MANOJ KUMAR: CARE Lowers Rating on INR15cr LT Loan to B-
--------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Manoj Kumar and Sons (MKS), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Short Term Bank 10.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated September 15,
2022, placed the rating(s) of MKS under the 'issuer
non-cooperating' category as MKS 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. MKS
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated August 1, 2023, August 11, 2023, August 21,
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 has been revised on account of non-availability of
requisite information.
Manoj Kumar and Sons (MKS) was formed as proprietorship concern by
Mrs Alpana Gupta in 2013. The firm is engaged in processing of
Chana into Chana dal and trading of agro commodities.
MINDSCAPE INT'L: CARE Keeps B- Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Mindscape
International Education Society (MIES) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.08 CARE B-; Stable; 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 September 15,
2022, placed the rating(s) of MIES under the ‘issuer
non-cooperating' category as MIES 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. MIES
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a lette
dated August 1, 2023, August 11, 2023, August 21, 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).
Mindscape International Education Society (MIES) got registered
under the Society registration Act-1860 on Sept. 7, 2009.The
society was established by Mr. Manu Bhandari and Mrs. Santosh
Bhandari with an objective to provide education service. The
society is running a school under the name of "The Sky World
School" (TSWS) at Panchkula Haryana. TSWS is Central Board of
Secondary Education (CBSE) affiliated, currently offering classes
from Pre-nursery to 8th standard.
NEMCARE HOSPITAL: CARE Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Nemcare
Hospital Tezpur Private Limited (NHTPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated August 30,
2022, placed the rating(s) of NHTPL under the 'issuer
non-cooperating' category as NHTPL 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. NHTPL 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).
NHTPL was incorporated on May 23, 2016 by Guwahati based NEMCARE
Group. North East Medical Care & Research Centre Pvt Ltd (NEMCRCPL)
holding 88.64% stake in NHTPL is the flagship company of the group
which is already operating a 100 bed multi-speciality hospital in
Guwahati, Assam since last 2 decade. This apart, Nemcare Hospital
Pvt Ltd (NHPL, IND D) another company of the group is running a 200
bed multi-speciality hospital in Guwahati. NHTPL is setting up a 60
bed multi-speciality hospital in Tezpur, Assam at an estimated cost
of INR25.98 crore (being funded at a debt equity ratio of 1.7:1).
The commencement of the same has been postponed from April'18 and
the project is expected to be completed by April 2020. Dr. Mihir
Kumar Baruah, Director [MBBS, PGDHHM] along with Dr. Hiteshwar
Baruah (MBBS, MAIMS, FAIMS) serving as the chairman and Managing
Director of NHTPL is looking after day to day operations of the
company. The promoters are having an experience of more than two
decades in the healthcare industry.
P.S. ASSOCIATES: CARE Keeps B-/A4 Debt Rating in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of P.S.
Associates (PA) continue to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/Short 8.00 CARE B-; Stable/CARE A4;
Term Bank ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 2.00 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 September 21,
2022, placed the rating(s) of PA under the 'issuer non-cooperating'
category as PA 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. PA continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
August 8, 2023, August 17, 2023, August 27, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Delhi based P.S. Associates (PA) was incorporated in 2009 as a
partnership firm Mr. Pankaj Singh, Mr. Bharat Pahwa and Mr. Nikhil
Jain. They manage the overall business operations of the firm. PA
is engaged in execution of civil construction projects such as
construction of roads and bridges, building mainly for PWD (Public
Works Department) in Haryana, Delhi and Uttar Pradesh.
PRAGATI PACKAGING: CARE Keeps B- Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Pragati
Packaging (PP) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.00 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 September 23,
2022, placed the rating(s) of PP under the 'issuer non-cooperating'
category as PP 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. PP continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
August 9, 2023, August 19, 2023, August 29, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings have been revised on account of non-availability of
requisite information.
Delhi based Pragati Packaging (PP) is a partnership firm
established in 2004 in association with Pragati International. The
firm is currently managed by Mr. Vaibhav Chadha. Now, the firm has
its manufacturing facility in Delhi and Noida. The firm is engaged
in manufacturing of flexible packaging material i.e. rolls and
pouches mainly for products like paan masala, tobacco etc.
PRASAD EDUCATION: CARE Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Prasad
Education Trust (PET) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 43.82 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 22,
2022, placed the rating(s) of PET under the 'issuer
non-cooperating' category as PET 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. PET
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated August 8, 2023, August 18, 2023, September 21,
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 PET was established in 1997 with an objective
to provide education services. The society is managed by Mr. B. P.
Singh (Chairman), Mrs. Anita Yadav (Trustee) and Mr Palash P Yadav
(Vice Chairman). PET provides undergraduate and post-graduate
courses in various fields of Engineering, Computers Science,
Management and Pharma. The college is affiliated to Uttar Pradesh
Technical University, Dr. Ram Manohar Lohia Avadh University and is
approved by the All-India Council for Technical Education (AICTE).
The society also operates a CBSE school in the name of Prasad
International School providing primary and secondary education from
Nursery to class XIIth. The school is affiliated to Central Board
of Secondary Education (CBSE).
PRASADHINI ENTERPRISES: CARE Keeps B- Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Prasadhini
Enterprises Private Limited (PEPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.41 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated August 5, 2022,
placed the rating(s) of PEPL under the 'issuer non-cooperating'
category as PEPL 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. PEPL 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).
Prasadhini Enterprises Private Limited (PEPL), incorporated in the
year 2000, is operating a budget Hotel 'Airlines' in Mysuru,
Karnataka. The company also has a retail property situated at
Mysuru, Karnataka with total built up area of 55,000 sq. ft., which
it has leased to Trinethra Superretail P Ltd. wholly owned
subsidiary of Aditya Birla Retail Limited for running 'More
Hypermarket' for period up to 2024. The company is promoted by Mr.
M H Abhishek Hegde and Ms. Jayapadma Hegde, who are directors of
the company. The directors have adequate knowledge and experience
in the field of banking, law and business activities.
PROGRESSIVE CARS: CARE Keeps B Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Progressive
Cars Private Limited (PCPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 14.47 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 1, 2022,
placed the rating(s) of PCPL under the 'issuer non-cooperating'
category as PCPL 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. PCPL continues to be
noncooperative 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).
Ahmedabad-based (Gujarat), PCPL was incorporated as a private
limited company in November 1999 as an authorized dealer and an
authorized service centre for Fiat Cars. PCPL closed down its Fiat
cars dealership in 2003 and became an authorized dealer and an
authorized service centre for passenger cars manufactured by TATA
Motors Limited and opened its first showroom and workshop in Anand,
PCPL opened its second TATA Motors cars showroom in Nadiad in the
year 2007. In 2012 PCPL became an authorized dealer and an
authorized service centre for two wheelers manufactured by TVS
Motor Company Ltd. and opened its first two wheelers showroom in
Anand. In 2017 PCPL opened its third TATA Motors cars showroom in
Ahmedabad.
RAM AGRO: CARE Keeps B- Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shri Ram
Agro Sciences Private Limited (SRASPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 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 September 22,
2022, placed the rating(s) of SRASPL under the 'issuer
non-cooperating' category as SRASPL 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. SRASPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated August 8, 2023, August 18,
2023, September 13, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Rudrapur-based (Uttarakhand) Shri Ram Agro Sciences Private Limited
(SRASPL) was incorporated in 2011 by Mr Jasvinder Singh, Mrs
Jasmeet Kaur, Mr Jeetender Singhal, and Mr Manpreet Singh. The
company is engaged in processing and trading of wheat, paddy,
vegetables, green manure, and fodder seeds.
REVASHANKAR GEMS: CARE Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Revashankar
Gems Limited (RGL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 40.00 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 September 19,
2022, placed the rating(s) of RGL under the 'issuer
non-cooperating' category as RGL 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. RGL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated August 5, 2023, August 15, 2023, August 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).
Incorporated in 1995, Revashankar Gems Limited (RGL) erstwhile
operated as partnership since 1961. RGL is engaged in the business
of processing and exporting of cut and polished diamonds of size of
0.01 to 0.10 carats. RGL has its processing plant located at Surat
(Gujarat). RGL imports rough diamonds from Belgium and Israel.
SHALIMAR ISPAT: CARE Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Shalimar
Ispat Udyog (SIU) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 2.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated August 19,
2022, placed the rating(s) of SIU under the 'issuer
non-cooperating' category as SIU 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. SIU
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated July 5, 2023, July 15, 2023, July 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).
Raipur (Chhattisgarh) based, Shalimar Ispat Udyog (SIU) was
established as a partnership firm in May 1994. Since its inception,
the firm is engaged in engaged in manufacturing of MS bars, squares
& rounds, flats, channels, angels and rectangular bars etc. The
manufacturing facility of the firm is located at Raipur,
Chhattisgarh with an installed capacity of 9,000 metric tones per
annum.
V. SELVAM: CARE Reaffirms B+ Rating on INR16.20cr LT Loan
---------------------------------------------------------
CARE Ratings has reaffirmed ratings on certain bank facilities of
V. Selvam, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term
Bank Facilities 16.20 CARE B+; Stable Reaffirmed
Rationale and key rating drivers
The rating assigned to the bank facilities of V. Selvam is
primarily constrained by the small scale of operations, stretched
liquidity profile and proprietorship nature of constitution with
inherent risk of withdrawal of capital. The rating is further
constrained by the inherent cyclicality of the hospitality industry
and highly leveraged capital structure. The rating, however,
derives strength from the experienced promoter and healthy
operating margins.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Increase in scale of operation with occupancy levels above 60% in
hotel business.
* Improvement in the capital structure as marked by overall gearing
ratio of below 1.75x.
Negative factors
* Decline in profitability margins as marked by PBILDT margin below
20.00% on sustained basis.
* Increase in debt level leading to stress on liquidity position of
the firm.
Analytical approach: Standalone
Outlook: Stable
CARE Ratings believes that the entity shall sustain its moderate
financial risk profile over the medium term.
Detailed description of the key rating drivers:
Key weaknesses
* Highly leveraged capital structure: The Capital structure of the
firm is highly leveraged though there is been improvement in
overall gearing from 3.75x as on Mar 31, 2022 to 2.76 x as on March
31, 2023, due to accretion of profits. Being in hotel sector, the
firm availed Covid related restructuring for its term loans,
wherein it obtained principal moratorium for two term loans till
July 2022. As on date the total debt outstanding is about INR 17.60
crore as on March 31, 2023 (PY: INR 16.95 crore).
* Small scale of operations: The scale of operation continues to be
small with a total operating income around INR 6-8 crores in last
five years. The revenues reached pre-covid level and stood at
INR8.69 crores in Fy23. The hotel business contributed around 71%
of the revenues, followed by wedding hall and bus service income.
Revenue from Hotel business improved from INR3.42 crore in FY 2022
to INR6.21 crore in FY 2023 owing to higher occupancy with return
to normalcy.
* Proprietorship nature of constitution with inherent risk of
withdrawal of capital: V. Selvam is a proprietorship nature of
business wherein the inherent risk of withdrawal of capital by the
proprietary at the time of their personal contingencies resulting
in erosion of capital base leading to adverse effect on capital
structure. It is observed the proprietor has withdrawn capital of
INR 2.85 Crore during FY22.
Key strengths
* Experienced promoter: Mr. V. Selvam runs various businesses viz
hotel, bus transport services, wedding hall/commercial complex
rentals and auto fuel outlets. He was previously associated with
the educational sector for almost two decades and holds the
position of Vice President in one of the renowned higher
educational institutions in India, viz Vellore institute of
Technology.
* Healthy operating margins: The operating margin (OM) of the firm
stood healthy above 30% during the last three years due to the
service nature of industry. The PBILDT Margin stood at 32.78% in
FY23 as against 36.89% in FY22. Generally, The wedding and hotel
business constitute major part of profitability.
Liquidity: Stretched
The liquidity of the firm is stretched due to small scale of
operations of hotel business coupled with tightly matched cash
accruals against term loan repayment obligations. The entity
majorly deals with customers on cash & carry basis except with
corporate customers where 15 days credit period is offered. On the
payments side, average credit period of 30 day offered to the firm
for F&B supplies. The operating cycle continues to remain negative
in FY23 due to elongated creditor payment period. The interest
coverage indicator stood at 4.77x and current ratio stood at 2.32x
in FY23.
V. Selvam is a proprietorship firm which was founded and promoted
by Mr. V. Selvam since 1990. The firm operates in four business
vertical namely Bar, bus transport service, hotel and wedding hall
businesses. Hotel business is functioning under the brand name of
'Khana Fiesta' situated in Vellore, Tamil Nadu having 52 deluxe
rooms, 2 banquet hall with seating capacity of 200 persons each,
multi cuisine restaurant and separate bar facility. Khana Fiesta is
a three star hotel which was established in the year 2016 is being
managed and operated by M/s Bergamont Hotels Private Limited as per
the agreement entered with the firm. The promoter has experience
close to 3 decades in various businesses.
VASUNDHARA DEVELOPERS: ICRA Keeps B Rating in Not Cooperating
-------------------------------------------------------------
ICRA has kept the long-term rating for the bank facilities of
Vasundhara Developers in the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA]B (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 10.00 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance. Further, ICRA has been sending repeated
reminders to the entity for payment of surveillance fee that became
due but despite repeated requests by ICRA, the entity's management
has remained non-cooperative. The current rating action has been
taken by ICRA basis best available/dated/limited information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity. The rating action has been
taken in accordance with ICRA's policy in respect of
non-cooperation by a rated entity available at www.icra.in.
Vasundhara Developers (VD) is a partnership firm founded in 2014
and is engaged in the business of construction of residential
apartments with its head office is located in Guntur District of
Andhra Pradesh. The firm has developed Vasundhara Orchids in
Vijayawada on a land area of 4360 sq Yards.
YASHODAKRISHNA AUTO: CARE Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of
Yashodakrishna Automobiles Private Limited (YAPL) continues to
remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 34.54 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated August 24,
2022, placed the rating(s) of YAPL under the 'issuer
non-cooperating' category as YAPL 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. YAPL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated July 10, 2023, July 20, 2023, July 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: Standalone
Outlook: Not Applicable
Yashoda Krishna Automobiles Private Limited (YAPL) belongs to Radha
Group Toyota of Vijayawada, Andhra Pradesh established in 1964 as a
trading organization. Radha Group Toyota is engaged in the business
of sales and service of passenger vehicles of Toyota Kirloskar
Motors Pvt Limited (TKML) and it is an authorized dealer of TKML.
The group was promoted by Mr. M Subrahmanyam (Chairman), who has
more than five decades of experience in trading and more than two
decades of experience in automobile industry. Mr. M Srinivas
(Managing Director) has more than two decades of experience in
automobile industry. The group comprises of four automobile
companies namely Radha Krishna Automobiles Private Limited, Radha
Madhav Automobiles Private Limited, Leela Krishna Automobiles
Private Limited and Yashoda Krishna Automobiles Private Limited
located in Andhra Pradesh and Telangana. These four companies are
in to similar line of business catering to different regions in
both states. RMAPL and LKAPL are operating in the state of Andhra
Pradesh, whereas RKAPL and YKAPL are operating in the state of
Telangana with a total of 15 showrooms in both the states.
=================
I N D O N E S I A
=================
BUMI SERPONG: Moody's Affirms 'Ba3' CFR, Outlook Remains Stable
---------------------------------------------------------------
Moody's Investors Service has affirmed Bumi Serpong Damai TBK
(P.T.)'s (BSD) Ba3 corporate family rating.
Moody's has also affirmed the Ba3 backed senior unsecured rating on
the 2025 notes issued by Global Prime Capital Pte. Ltd., a
wholly-owned subsidiary of BSD. The notes are guaranteed by BSD and
several of its subsidiaries.
At the same time, Moody's has maintained the stable outlook.
"The ratings affirmation reflects BSD's strength as Indonesia's
largest property developer in terms of market capitalization, with
the flexibility to alter its products to suit market demand, as
well as its continued financial prudence and very good liquidity.
The Ba3 CFR also takes into account Moody's expectation that BSD's
credit metrics will remain comfortably positioned within the
parameters of its rating," says Rachel Chua, a Moody's Vice
President and Senior Analyst.
RATINGS RATIONALE
Moody's expects BSD will book marketing sales of around IDR5.5
trillion for 2023. In the first half of 2023, the company achieved
IDR3.1 trillion of marketing sales, which accounted for around 53%
of its full-year marketing sales target of IDR5.8 trillion. The
marketing sales figures exclude sales from its joint venture
projects, such as Nava Park, The Zora and Hiera-Mitbana. Product
launches will likely slow toward the end of the year as the country
prepares for elections in early 2024.
BSD's credit metrics will likely remain strong over the next 12-18
months, with adjusted debt-to-EBITDA of around 3.5x and EBIT
interest coverage of 3.0x-3.5x. Its adjusted debt/EBITDA was 2.6x
and EBIT/interest was 5.6x for the 12 months that ended June 30,
2023.
Nonetheless, Moody's notes that there was a short-term intercompany
loan of $11 million (-IDR170 billion) to BSD's shareholder,
Sinarmas Land Limited, in November 2022. While the amount was not
large and has been promptly repaid, the agency views it as credit
negative given the cash leakage from the company.
BSD's liquidity will remain very good over the next 12-18 months,
supported by its large cash holdings. As of June 30, 2023, the
company had IDR10.5 trillion of cash and cash equivalents, versus a
total reported debt of IDR12.6 trillion. Moody's expects the
combination of BSD's operating cash flow generation and cash
balance will more than sufficiently cover its maturing bank debt
obligations of around IDR1.6 trillion and capital spending of
around IDR1.6 trillion.
The company has continued to demonstrate financial prudence over
the past 12-18 months with the redemption of its 2023 notes ahead
of maturity. BSD's next material maturity is in January 2025 when
its $300 million US dollar bonds come due.
The stable outlook reflects Moody's expectation that BSD will (1)
continue to launch developments over the next 12-18 months, such
that its marketing sales remain strong; (2) maintain its very good
liquidity, characterized by its large cash balance; (3) address the
upcoming maturity of its 2025 notes ahead of time; and (4) maintain
its historically-prudent financial policies as it pursues growth.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's could upgrade BSD's ratings if the company executes its
business plans, improves its credit metrics and maintains its very
good liquidity.
Credit metrics that would support an upgrade include adjusted
debt/EBITDA below 2.5x and adjusted EBIT/interest expense above
5.0x on a sustained basis. Given the volatile property development
industry, an upgrade will also require the company's recurring cash
flow to cover at least 1.0x of its interest expense and for it to
maintain a good cash balance.
Moody's could downgrade BSD's ratings if (1) the company fails to
implement its business plans; (2) the property market deteriorates,
leading to protracted weakness in the company's operations and
credit quality; or (3) there is evidence of cash leakage from BSD
to fund its affiliated companies, for example, through intercompany
loans, aggressive cash dividends or investments in the affiliates.
Credit metrics indicating a downgrade include adjusted debt/EBITDA
over 4.0x and adjusted EBIT/interest expense below 3.0x on a
sustained basis.
The principal methodology used in these ratings was Homebuilding
and Property Development published in October 2022.
Established in 1984, Bumi Serpong Damai TBK (P.T.) (BSD) is the
largest developer listed on the Indonesia Stock Exchange by market
capitalization. The company and its subsidiaries are engaged in the
development, management and operation of residential townships,
condominium towers, office buildings, retail malls and hotel
properties. The company is sponsored by Sinarmas Land Limited,
which had an effective shareholding of around 60% in BSD as of
September 30, 2023.
===============
M O N G O L I A
===============
MONGOLIAN MORTGAGE: Moody's Puts 'B3' CFR on Review for Downgrade
-----------------------------------------------------------------
Moody's Investors Service has placed Mongolian Mortgage Corporation
HFC LLC's B3 foreign currency long-term issuer rating, foreign
currency backed senior unsecured rating and long-term corporate
family rating on review for downgrade.
Previously, the outlook was stable.
RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR
DOWNGRADE OF THE RATINGS
The review for downgrade of Mongolian Mortgage Corporation's
ratings reflects the company's weak liquidity management and the
pressure this puts on the company's standalone assessment, amid
rising uncertainty over its refinancing plans for its outstanding
$223 million US dollar bonds maturing in February 2024. The current
very high interest rate environment relative to February 2021 when
the company last issued US dollar bonds raises questions over the
feasibility of the company tapping the capital market to refinance
its bonds. The company also faces very high execution and
counterparty risks in its alternative plan to raise liquidity via
asset liquidation.
Moody's review will focus on the progress and successful completion
of Mongolian Mortgage Corporation's refinancing plans, including
any new foreign currency bond issuance or new borrowings from the
government or international financial institutions. If the company
relies mostly on asset liquidation to raise liquidity, the agency
will assess the progress, amount and timeliness of the liquidation,
including the sale back of purchase with recourse mortgage assets
to originating banks and non-bank financial institutions, and the
receipt of interest and principal repayments of corporate loan
notes.
The agency will also review whether there will be any government
support for the company's refinancing efforts. The company is a
wholly-owned subsidiary of MIK Holding JSC (MIK), which is
ultimately 17.2% owned by the Government of Mongolia (B3 stable)
through stakes held by Development Bank of Mongolia LLC (B3 stable,
caa2) and State Bank JSC (B3 stable, b3) as of December 31, 2022.
Mongolian Mortgage Corporation has low asset risks for both its
purchase with recourse and purchase without recourse businesses.
Offsetting this credit strength is the company's counterparty risk,
including concentration risk; weak cash flow, liquidity and
liquidity management; and weak capital adequacy and leverage due to
the company's sustained net losses.
The company's foreign currency backed senior unsecured debt is
guaranteed by its parent, MIK.
An upgrade of Mongolian Mortgage Corporation's ratings is unlikely,
given the review for downgrade. Moody's could confirm the ratings
if (1) the refinancing of its maturing bonds is completed on
satisfactory terms and conditions, (2) the liquidation of its
assets is timely and the proceeds sufficient to cover its
repayment, or (3) the government provides support for the company's
refinancing efforts.
Moody's could downgrade Mongolian Mortgage Corporation's ratings if
(1) the company fails to refinance on time, (2) its asset
liquidation is not completed on time, or the proceeds are
insufficient to cover its repayment, or (3) the government does not
provide support for the company's refinancing efforts.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) CONSIDERATIONS
Mongolian Mortgage Corporation's Credit Impact Score of CIS-2
indicates that ESG considerations do not have material impact on
its current ratings. However, its Governance Issuer Profile Score
of G-3 reflects its moderate governance risk, including its weak
liquidity management as part of its financial strategy and risk
management.
The principal methodology used in these ratings was Finance
Companies Methodology published in November 2019.
Mongolian Mortgage Corporation HFC LLC is a wholly owned subsidiary
of MIK Holding JSC, which is headquartered in Ulaanbaatar. MIK
Holding JSC 's consolidated assets totaled MNT4.55 trillion ($1.32
billion) as of December 31, 2022.
=====================
N E W Z E A L A N D
=====================
AK SERVICES: Court to Hear Wind-Up Petition on Oct. 13
------------------------------------------------------
A petition to wind up the operations of AK Services (2015) Limited
will be heard before the High Court at Auckland on Oct. 13, 2023,
at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Aug. 28, 2023.
The Petitioner's solicitor is:
Hosanna Tanielu
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
FD KITCHENS: Creditors' Proofs of Debt Due on Oct. 31
-----------------------------------------------------
Creditors of FD Kitchens + Interiors Limited are required to file
their proofs of debt by Oct. 31, 2023, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Oct. 2, 2023.
The company's liquidators are:
Steven Khov
Kieran Jones
Khov Jones Limited
PO Box 302261
North Harbour
Auckland 0751
P PROS: Creditors' Proofs of Debt Due on Oct. 28
------------------------------------------------
Creditors of P Pros Limited are required to file their proofs of
debt by Oct. 28, 2023, to be included in the company's dividend
distribution.
The High Court at Christchurch appointed Janet Sprosen and Leon
Francis Bowker of KPMG as liquidators on Sept. 28, 2023.
SEA HUNTER: Court to Hear Wind-Up Petition on Nov. 3
----------------------------------------------------
A petition to wind up the operations of Sea Hunter Marine Limited
will be heard before the High Court at Auckland on Nov. 3, 2023, at
10:45 a.m.
Tidal Yachting Limited filed the petition against the company on
Sept. 18, 2023.
The Petitioner's solicitor is:
Bevan Marten
Izard Weston
Level 3, 26 The Terrace
Wellington 6140
TLC CONTRACTORS: High Court to Hear Liquidation Bid on Oct. 13
--------------------------------------------------------------
BusinessDesk reports that a building company that received
publicity for innovative modular pods prefabricated in Vietnam as
an economic and green alternative for hotels and housing
construction faces liquidation in the high court in Auckland on
Oct. 13.
According to BusinessDesk, demolition and civil works company Yakka
TDC filed the application over a NZD550,000 debt it claims it is
owed by TLC Contractors Ltd (trading as TLC Modular) for concreting
and civil work at the developer's Bellville site in Papakura, where
64 townhouses are being built in stages.
TRADE LIFE: Waterstone Insolvency Appointed as Receivers
--------------------------------------------------------
Damien Grant and Adam Botterill of Waterstone Insolvency on Oct. 3,
2023, were appointed as receivers and managers of Trade Life
Limited, Benjamin Haldezos, Jayden Michael Evans And Jennifer
Haldezos.
The receivers and managers may be reached at:
Waterstone Insolvency
16 Piermark Drive
Rosedale
Auckland 0632
=================
S I N G A P O R E
=================
CHARISMA ENERGY: Four Directors Step Down
-----------------------------------------
The Business Times reports that four directors of Charisma Energy
have stepped down from the board, while the company has appointed a
new director to chair two of its sub-committees, the company said
in a bourse filing on Oct. 3.
Charisma chief executive Tan Ser Ko is stepping down as executive
director after more than 12 years but will retain his position as
CEO, BT relates.
"The cessation of Mr. Tan as executive director is aligned to the
company's business plans moving forward as the company is in the
midst of preparing and submitting its trading resumption proposal,"
the company said.
According to BT, Eng Chiaw Koon is stepping down as non-independent
non-executive director to "devote more time and attention to his
personal endeavours, which is part of his plan to retire from the
corporate world", the company said.
"The cessation of Mr. Eng as a board member is also part of the
board's reconstitution exercise as part of the company's trading
resumption efforts," it added.
Lim Cheng Yang and Cheng Yee Seng are both stepping down as
independent non-executive director, BT relates.
Citing the desire to "devote more time and attention to his
personal endeavours," Lim will also relinquish his role as chairman
of the nominating committee.
BT says Cheng is relinquishing his role as chairman of the
remuneration committee, citing reasons "related to his family
matters and personal endeavours".
According to BT, the company's sponsor, PrimePartners Corporate
Finance, said it is satisfied that there are no other material
reasons for three of these departures. It added however that Cheng
was unavailable for the interview due to a "family-related matter",
and that it will interview him "in due course".
Meanwhile, Ow Yong Thian Soo is joining the board as an independent
non-executive director and is appointed chairman of both the
nominating committee and remuneration committee.
Ow Yong has been a board member of Koh Brothers Group since 2016
and is a senior partner at law firm Lee & Lee.
BT adds that Charisma noted that Ow Yong's practice covers a wide
range of real estate and financing transactions relating to
commercial, industrial and residential properties.
Trading in Charisma shares has been suspended since February 2019,
with the company working towards its debt restructuring and
recapitalization, BT notes.
About Charisma Energy
Based in Singapore, Charisma Energy Services Limited --
http://charismaenergy.com/index.php-- is an energy investment
holding company. The principal activities of the Company are those
of investment holding and the provision of management services to
its subsidiaries. The Company mainly generates and sells energy and
power generation services. The Company is focused on the renewable
energy sectors and divesting its marine and offshore oil and gas
services (O&G) to the Company's renewable energy portfolio.
DEELISH BRANDS: Commences Wind-Up Proceedings
---------------------------------------------
Members of Deelish Brands Pte Ltd, on Sept. 28, 2023, passed a
resolution to voluntarily wind up the company's operations.
The company's liquidator is:
Ms. Chan Li Shan
c/o Agile 8 Solutions
133 Cecil Street
#14-01 Keck Seng Tower
Singapore 069535
HEALTHSCIENCES INTERNATIONAL: Commences Wind-Up Proceedings
-----------------------------------------------------------
Members of Healthsciences International Pte Ltd and HSI Dental Pte.
Ltd. on Sept. 28, 2023, passed a resolution to voluntarily wind up
the company's operations.
The company's liquidators are:
Cameron Lindsay Duncan
David Dong-Won Kim
KordaMentha
16 Collyer Quay, #30-01
Singapore 049318
LASER CLINICS: Creditors' Meeting Set for Oct. 12
-------------------------------------------------
Laser Clinics Singapore Pte Ltd will hold a meeting for its
creditors on Oct. 12, 2023, at 3:00 p.m. via video conference.
Agenda of the meeting includes:
a. to receive a full statement of the Company's affairs
together with a list of its creditors and the estimated
amount of their claims;
b. to nominate liquidator(s) or to confirm member's nomination
of liquidators;
c. to consider and if thought fit, appoint a Committee of
Inspection for the purpose of such winding up; and
d. Any other business.
Mick Aw and Bernard Juay on Sept. 18, 2023, were appointed as
provisional liquidators of Laser Clinics Singapore Pte Ltd.
SAIL INTERNATIONAL: Commences Wind-Up Proceedings
-------------------------------------------------
Members of Sail International Marketing Pte Ltd on Sept. 27, 2023,
passed a resolution to voluntarily wind up the company's
operations.
The company's liquidator is:
Ms. Oon Su Sun
Finova Advisory
182 Cecil Street
#30-01 Frasers Tower
Singapore 069547
SINGAPORE JHC: Court Enters Wind-Up Order
-----------------------------------------
The High Court of Singapore entered an order on Sept. 8, 2023, to
wind up the operations of Singapore JHC Co. Pte. Ltd.
Founder Group (Hong Kong) Limited filed the petition against the
company.
The company's liquidators are:
Mr. Paresh Jotangia
Ms. Ho May Kee
Mr. Seshadri Rajagopalan
c/o Grant Thornton Singapore
8 Marina View, #40-04/05
Asia Square Tower 1
Singapore 018960
*********
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