/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/231016.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Monday, October 16, 2023, Vol. 26, No. 207 Headlines A U S T R A L I A ALLAN'S CAKE: Shuts Doors After 30 Years in Business BOOTY BUILDER: First Creditors' Meeting Set for Oct. 18 FAMILIES TASMANIA: First Creditors' Meeting Set for Oct. 18 GENESIS CARE: S&P Withdraws 'D' Isser Credit Rating HYP ENTERTAINMENT: First Creditors' Meeting Set for Oct. 23 MOBIUS DISTILLING: First Creditors' Meeting Set for Oct. 18 TEADY PTY: First Creditors' Meeting Set for Oct. 19 C H I N A CHINA EVERGRANDE: Fears Reportedly Spark Small Bank Run COUNTRY GARDEN: Founding Family Lends $300 million, Paper reports SUNING.COM: Gets CNY5 Billion Aid from Citic Trust, China Huarong I N D I A ABCN LOGISTICS: Ind-Ra Withdraws BB+ Bank Loan Rating AGARWAL RUBBER: Ind-Ra Moves BB+ Loan Rating to Non-Cooperating APEX COCO: Ind-Ra Gives B Bank Loan Rating, Outlook Stable BISMAN INDUSTRIES: ICRA Keeps D Debt Ratings in Not Cooperating BYJU'S: Lenders Move to Put Singapore Unit in Receivership CARLOO TEXTILE: Ind-Ra Moves BB+ Issuer Rating in Non-Cooperating CHAITANYA ENTERPRISES: ICRA Keeps D Rating in Not Cooperating DIGITAL FACTORY: CARE Keeps D Debt Rating in Not Cooperating DOLPHIN MARINE: ICRA Keeps D Debt Ratings in Not Cooperating EAST HYDERABAD: CARE Keeps D Debt Rating in Not Cooperating FENICE CHEMICALS: Voluntary Liquidation Process Case Summary GOLD STAR: ICRA Keeps D Debt Ratings in Not Cooperating Category GVK JAIPUR: ICRA Keeps D Debt Rating in Not Cooperating Category INDIA MEGA: CARE Keeps D Debt Rating in Not Cooperating Category JEPPIAAR POWER: ICRA Keeps D Debt Rating in Not Cooperating KRUSHNA INDUSTRIES: ICRA Keeps D Debt Rating in Not Cooperating L.M FOODS: ICRA Keeps D Debt Ratings in Not Cooperating Category LIMTEX AGRI: ICRA Keeps D Debt Ratings in Not Cooperating M S RAMAIAH: ICRA Keeps D Debt Ratings in Not Cooperating MAGNUM AVIATION: CARE Keeps D Debt Ratings in Not Cooperating NUTRIONEX MANUFACTURES: Liquidation Process Case Summary ORIEL WINDOWS: Insolvency Resolution Process Case Summary PARAMASIVAM PALANISAMY: ICRA Keeps D Rating in Not Cooperating PENGUINE HOSPITALITY: Liquidation Process Case Summary PRANI AUTO: ICRA Keeps D Debt Ratings in Not Cooperating Category REDDY AND REDDY: CARE Keeps C Debt Rating in Not Cooperating ROOP TECHNOLOGY: ICRA Keeps D Debt Ratings in Not Cooperating SAMRAT PLYWOOD: CARE Lowers Rating on INR39.48cr LT Loan to D SANGAM HANDICRAFT: CARE Keeps D Debt Ratings in Not Cooperating SARTHAK ISPAT: Ind-Ra Keeps BB+ Loan Rating in NonCooperating SASWAD MALI: Ind-Ra Cuts Bank Loan Rating to C SHIVASHAKTI SUGARS: Ind-Ra Affirms BB+ Bank Loan Rating SHRIVIDYA EDUCATION: ICRA Keeps D Debt Ratings in Not Cooperating SPONGE SALES: Ind-Ra Keeps BB Loan Rating in Non-Cooperating SRINIVASA EDUCATIONAL: CARE Keeps D Debt Rating in Not Cooperating STEELFAB ENGINEERING: ICRA Keeps D Debt Rating in Not Cooperating STERLING AND WILSON: Ind-Ra Cuts Bank Loan Rating to D TBPR INFRA: ICRA Keeps D Debt Ratings in Not Cooperating Category TECHNO INDIA: ICRA Keeps D Debt Ratings in Not Cooperating YAXIS STRUCTURAL: Ind-Ra Gives BB Loan Rating, Outlook Stable ZYEX CHEMICALS: Ind-Ra Gives BB- Loan Rating, Outlook Stable I N D O N E S I A MEDCO ENERGI: Moody's Affirms 'B1' CFR, Outlook Remains Stable PAN BROTHERS: Fitch Lowers LongTerm IDR to 'C' N E W Z E A L A N D FAIRHAVEN WALK: Court to Hear Wind-Up Petition on Oct. 20 GILLI CAFE: Court to Hear Wind-Up Petition on Oct. 20 KP INTERIOR: Court to Hear Wind-Up Petition on Oct. 26 TWO EDITH'S: Court to Hear Wind-Up Petition on Oct. 26 YANKEE BOURBON: Court to Hear Wind-Up Petition on Oct. 26 S I N G A P O R E CEILWELL (S): Court Enters Wind-Up Order CREATIVE TECHNOLOGY: Files Notice of 3 Straight Years of Losses DIRECT SOLUTIONS: Creditors' Proofs of Debt Due on Nov. 14 EAM GLOBAL: Court to Hear Wind-Up Petition on Oct. 27 FLASH COFFEE: Exits Singapore to Cut Costs; Owes Over SGD14MM NWC 313: Court to Hear Wind-Up Petition on Oct. 27 YOHOKOMO SINGAPORE: Court to Hear Wind-Up Petition on Oct. 27 S R I L A N K A CAPITAL ALLIANCE: Fitch's Keeps BBf(lka) Nat'l Fund Rating on RWN SRI LANKA: Bondholders Sent US$12BB Debt Rework Proposal to Gov't. UB FINANCE: Fitch's 'BB(lka)' Nat'l. LT Rating Off Neg. Watch - - - - - ================= A U S T R A L I A ================= ALLAN'S CAKE: Shuts Doors After 30 Years in Business ---------------------------------------------------- News.com.au reports that iconic bakery Allan's Cake Hot Bread shut its doors last weekend after over 30 years in business. The business has been around between 30 and 35 years, initially starting in Erskineville in Sydney's inner west. The bakery moved to Enmore Road in Newtown in the early 2000s and has been delivering classic bacon rolls, bahn mi, and pastries ever since. News.com.au says locals have expressed their sadness over the closure of the family run business. "This will be an enormous loss to the neighbourhood," one commented in an Enmore Facebook group. Others called the news "tremendously sad" and shared their love for the bakery's food, news.com.au relays. "I remember when I first moved to Sydney (2007). I used to finish a shift working in a pub in Kings Cross at around 5am. I'd hope the train and pick up a breakfast pie from Allan's on my walk home from Newtown station," one reminisced. "This place fed me in the 90s when I worked at the dodgy Home Rentals. We were paid so little, I lived off the 50 cent bread. May even cost less. Rip Allan's," another added. But the iconic bakery doesn't seem to be the only one shutting its doors. Locals have mentioned that many other businesses in the area are either closing or moving elsewhere, with many doing so in the last couple weeks, according to news.com.au. At least four other Newtown and Enmore businesses have either closed recently or will be closing down soon. Among them is O'Le, an Enmore burger shop that's been established in the area since 1999, news.com.au discloses. Speaking to news.com.au, the former managing director and owner, Miguel Fernandes, said that he's sold the business to spend more time with his family and to pursue school catering with his other business, Lunch 2 Go. However, he said businesses in the area have been facing several issues, including the increased cost of rent, electricity, gas, and stock. He added that the typical dining experience has changed since the pandemic, with many consumers opting for online ordering and takeaway rather than dining in. "You used to see quite a few people. We found that it was a waste of space, paying high rents for having all this dine in when most people have shifted to just going online," he told news.com.au. He added that online merchants also tend to take a very high percentage of commission from businesses, which he says is contributing to the economic pressures they are facing. Additionally, he said that the introduction of the Enmore Road Special Entertainment Precinct has changed the area into more of a "late night restaurant scene". News.com.au relates that Mr. Fernandes said that many traders have dropped off since, making room for new businesses. As a result, he said that rent is going "through the roof". BOOTY BUILDER: First Creditors' Meeting Set for Oct. 18 ------------------------------------------------------- A first meeting of the creditors in the proceedings of Booty Builder Australia NZ Pty Ltd will be held on Oct. 18, 2023, at 9:00 a.m. at the offices of Robson Cotter Insolvency Group, at Unit 1/78 Logan Rd, in Woolloongabba, Qld or via virtual meeting technology. William Roland Robson of Robson Cotter Insolvency Group was appointed as administrator of the company on Sept. 13, 2023. FAMILIES TASMANIA: First Creditors' Meeting Set for Oct. 18 ----------------------------------------------------------- A first meeting of the creditors in the proceedings of Families Tasmania Inc. will be held on Oct. 18, 2023, at 10:00 a.m. at the offices of Rodgers Reidy (Tas), at Ground Floor, Cnr Bathurst and Argyle Street or via virtual meeting technology. Shelley-Maree Brooks of Rodgers Reidy (Tas) was appointed as administrator of the company on Oct. 9, 2023. GENESIS CARE: S&P Withdraws 'D' Isser Credit Rating --------------------------------------------------- S&P Global Ratings assigned its 'B+' issue-level rating to the US$200 million of first-out superpriority debtor-in-possession (DIP) new money term loans issued by Genesis Specialist Care Finance UK Ltd. and GenesisCare USA Holdings Inc. We also assigned a 'CCC-' issue-level rating to the companies' US$600 million of second-out superpriority DIP roll-up loans. S&P said, "At the same time, we withdrew our existing 'D' issuer credit rating on Australia-based Genesis Care Pty Ltd. and all outstanding issue-level ratings. The Australia-based cancer care service provider is operating under the protection of Chapter 11 following a voluntary filing on June 1, 2023. "We base our rating assessment on GenesisCare's rest of world (RoW) business in Australia, Spain, and the U.K. We expect this business will comprise operations when GenesisCare emerges from Chapter 11. For our assessments of capacity for repayment at emergence (CRE) and additional protection in a liquidation scenario (APLS), we have assumed that GenesisCare will divest its U.S. business and sell its stake in Palette Life Sciences. "Our 'B+' issue-level rating on the GenesisCare US$200 million DIP new money loans and 'CCC-' issue-level rating on the US$600 million DIP roll-up loans reflect our view of the credit risks borne by the DIP lenders." The risks include: -- GenesisCare's ability to meet its financial commitments during bankruptcy through our DCP assessment; -- Prospects for full repayment through reorganization and emergence from Chapter 11 via our CRE assessment; and -- Potential for full repayment in a liquidation scenario via our additional protection in an APLS assessment. S&P said, "Our DCP of 'CCC+' on GenesisCare reflects our assessment that the company has a weak business risk profile and highly leveraged financial risk profile. Additionally, we have applied a negative comparable ratings modifier to reflect our view that the company has an unsustainable capital structure during the Chapter 11 bankruptcy period. "Our CRE assessments indicate strong coverage for the DIP new money loans and insufficient coverage for the DIP roll-up loans.This is based on our estimated CRE coverage of 300% and 65% for the two respective tranches of DIP debt. This emergence assessment provides a two-notch uplift over the DCP for the DIP new money loans, and two downward notches for the DIP roll-up loans. We assess repayment prospects for purposes of the CRE assessment on the basis that only DIP new money creditors are required to be repaid in full with cash proceeds at bankruptcy emergence. "Our APLS assessment indicates greater than 125% total value coverage in a liquidation scenario for the DIP new money tranche, resulting in an additional one-notch uplift. However, the DIP roll-up loans have less than 125% total value coverage after the distribution of value waterfall, and therefore, there is no APLS uplift for this tranche." GenesisCare's bankruptcy filing reflects various ongoing business challenges, including: --- Revenue and earnings pressure that stems from weaker-than-expected patient treatment volumes in the U.S. The COVID-19 pandemic had hit GenesisCare's earnings and cash flows across all of its markets. Lockdowns had disrupted patient treatment pathways, and increased hesitancy among patients led to lower visits to GenesisCare's facilities. While there have been improvements in radiotherapy treatment patient volumes, volumes for the U.S. business have not yet returned to pre-pandemic levels. That said, RoW aggregate volumes increased during the three months to September 2023 by 21% against the three months to September 2019 (pre COVID). -- Outsourced revenue cycle management (RCM) issues that have adversely affected revenue collections for the U.S business. GenesisCare is in the process of improving its RCM and is making progress on its turnaround strategy. That said, GenesisCare intends to divest its U.S. business and retain the profitable RoW business in Australia, Spain, and the U.K. -- Heightened competition among oncology service providers in the U.S. These business challenges resulted in negative cash flow and significant liquidity pressures. S&P daid, "In our view, these will continue to weigh on the current capital structure, which we consider unsustainable. We expect demand for oncology services to remain resilient and recession proof as a mission-critical service." Financial challenges remain during the bankruptcy period even though GenesisCare's debt burden has substantially reduced to US$600 million in roll-up debt (compared with about US$1.7 billion of prepetition debt at the time of filing). The company's capital structure during the bankruptcy period is unsustainable due to high financial leverage and weak coverage credit metrics. In addition to the DIP roll-up debt, the DCP incorporates the following: -- US$200 million of DIP new money debt; -- US$20 million of debt that is likely to be owed to other creditors upon bankruptcy emergence; -- US$203 million of residual lease liabilities for the RoW business; and -- US$100 million of accrued bankruptcy-specific charges. HYP ENTERTAINMENT: First Creditors' Meeting Set for Oct. 23 ----------------------------------------------------------- A first meeting of the creditors in the proceedings of Hyp Entertainment Pty Ltd will be held on Oct. 23, 2023, at 11:00 a.m. at the offices of SV Partners, at Level 17, 200 Queen Street, in Melbourne, Vic or via telephone. Timothy James Brace and Peter Gountzos of SV Partners were appointed as administrators of the company on Oct. 11, 2023. MOBIUS DISTILLING: First Creditors' Meeting Set for Oct. 18 ----------------------------------------------------------- A first meeting of the creditors in the proceedings of Mobius Distilling Company Pty Ltd will be held on Oct. 18, 2023, at 11:00 a.m. at Suite 804, 33 Argyle Street, in Parramatta, NSW, or virtual meeting technology. Graeme Robert Beattie of Worrells was appointed as administrator of the company on Oct. 6, 2023. TEADY PTY: First Creditors' Meeting Set for Oct. 19 --------------------------------------------------- A first meeting of the creditors in the proceedings of Teady Pty Limited, trading as Snap Print Solutions Penrith, will be held on Oct. 19, 2023, at 11:00 a.m. at Level 3, 565 High Street, in Penrith, NSW, or via online/electronic means. Ernie Chou and Trent McMillen of MaC Insolvency were appointed as administrators of the company on Oct. 9, 2023. ========= C H I N A ========= CHINA EVERGRANDE: Fears Reportedly Spark Small Bank Run ------------------------------------------------------- Laura He at CNN reports that fears that Evergrande's debt woes are spreading into the wider financial industry have sparked a run on a regional bank in northern China, multiple state media outlets have reported. Depositors lined up at the bank in Cangzhou, in Hebei province, to withdraw their money, according to photos and videos circulated online this week, prompting an appeal for calm by officials, CNN relates. According to CNN, police in Cangzhou have arrested "many people" suspected of spreading rumors that the bank was suffering a cash crunch because of its exposure to Evergrande, Yicai, a state-owned media outlet, reported on Oct. 11, citing an officer deployed at the bank. Posts on Chinese social media reviewed by CNN claimed that the Bank of Cangzhou had lent billions of yuan in loans to Evergrande, the indebted property giant that defaulted on its debt in 2021 and is struggling to survive. Last month, Evergrande said its founder and chairman Xu Jiayin had been detained on suspicion of crimes, sparking fears that the company's multi billion-dollar restructuring plan might be in peril, which could lead to a forced liquidation of the firm and huge losses for its creditors. The bank has a statement from the city government posted at its entrance, assuring the public that their deposits are safe, Yicai said, CNN relays. "[We urge] financial consumers to make rational judgments and to avoid losing interest on your deposits due to rumors," according to a photo of the statement posted by the media outlet. The statement appeared to be signed and stamped by the Cangzhou government on Oct. 9. The bank's operations are "sound" and its depositors are protected by the national deposit insurance scheme, it said. It was unclear how many depositors took part in the bank run or how much they withdrew, CNN notes. Established in 1998, Bank of Cangzhou is majority controlled by the city's treasury department and has branches across the prefecture, which is located about 100 miles from Beijing. The lender has about 3,000 employees and its total assets stood at CNY246.5 billion ($34 billion) at the end of September. On Oct. 7, Bank of Cangzhou denied it had any liquidity issues, CNN says. "The loan data mentioned in the ‘detailed list of bank loans owned by Evergrande' is seriously inaccurate," the bank said in a statement, referring to a document circulating online purporting to show the amount of money the developer owes to banks. CNN relates that the bank said it had only CNY346 million ($47.4 million) in outstanding loans to Evergrande and its affiliates as of last Oct. 6, adding it had "sufficient" land and commercial storefronts as collateral. "The overall risk is controllable and will not have a significant impact on the bank's operations, management and asset quality," it said. 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. COUNTRY GARDEN: Founding Family Lends $300 million, Paper reports ----------------------------------------------------------------- Reuters reports that the founding family of Country Garden recently loaned the embattled Chinese property developer $300 million interest free, and the family was also trying to sell its private jet, a Chinese online news outlet, The Paper, reported on Oct. 13. Citing insiders, The Paper said the family was seeking to support liquidity for China's largest private property developer, which has missed coupon payments on some dollar bonds since last month, but has not defaulted, Reuters relays. Another online news outlet, Cailianshe, reported earlier that founder Yeung Kwok Keung had already sold a new jet and was trying to sell another, according to Reuters. Reuters says the company last week warned of its inability to meet offshore debt obligations, potentially joining a growing list of Chinese developers that have defaulted and setting the stage for one of the country's biggest debt restructurings. Country Garden's 30-day grace periods to make the missed coupon payments will start expiring this week, Reuters notes. A video posted on Country Garden's official Wechat account on Oct. 13 showed Yeung and president Mo Bin inspecting a development site close to its headquarters in Shunde, Guangdong province, two days ago. The Wechat post also cited company chairperson Yang Huiyan, Yeung's daughter, saying in a monthly internal meeting last week that Country Garden has to ensure home completions and business operations, and also enhance its business in high-tech construction, Reuters reports. About Country Garden Country Garden Holdings Company Limited is an investment holding company principally engaged in the sales of properties. The Company operates its business through five segments: Property Development segment, Construction Fitting and Decoration segment, Property Investment segment, Property Management segment and Hotel Operation segment. The Company's subsidiaries include Wuhan Country Garden Lianfa Investment Co., Ltd, Jurong Country Garden Property Development Co., Ltd and Chuzhou Country Garden Property Development Co., Ltd. As reported in the Troubled Company Reporter-Asia Pacific in September 2022, S&P Global Ratings lowered its long-term issuer credit rating on Country Garden to 'BB' from 'BB+'. The negative outlook on Country Garden reflects the risk that the company's liquidity buffer and leverage could further deteriorate due to weaker sales and a high amount of construction expenditure. SUNING.COM: Gets CNY5 Billion Aid from Citic Trust, China Huarong ----------------------------------------------------------------- Yicai Global reports that Citic Trust and China Huarong Asset Management, a state-owned manager of bad loans, will inject up to CNY5 billion (USD685.1 million) into Suning.Com over the course of 10 years to help the struggling retail giant reorganize its business. According to Yicai, the bailout program will assist the more than 30-year-old retailer to restructure its debts and equity, as well as isolate its trust assets to alleviate its hardships, Beijing-based Citic Trust said in an article published on WeChat on Oct. 11. The Nanjing-headquartered vendor of electronic appliances has been dealing with tight liquidity since the second half of 2020 when cash flows could not provide enough liquidity to cover maturing bonds after aggressive expansion over recent years, Yicai discloses citing public information. After communicating with the retailer, Citic Trust and China Huarong intend to first focus on Suning.Com's delivery business, targeting its logistics park projects in Shaoxing, Hangzhou, Nanjing and Chengdu, per the article, Yicai relays. Suning.Com has been trying to improve its financial performance. According to its interim earnings results, the company narrowed its net loss by 30 percent to CNY1.9 billion in the first six months of this year from a year ago, Yicai discloses. Revenue dropped by 9 percent to CNY34 billion (USD4.7 billion). Suning.Com Co., Ltd., operates consumer electronic products and appliances sales stores. The Company sells telecommunication equipment, telecommunication components, household appliances, digital equipment, refrigerators, washing machines, and other products. Suning.Com also provides equipment installation and repairing services. ========= I N D I A ========= ABCN LOGISTICS: Ind-Ra Withdraws BB+ Bank Loan Rating ----------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn ABCN Logistics Pvt Ltd.'s (ALPL) bank facility's rating as follows: -- The BB+ rating on the INR100 mil. Fund-based working capital limit is withdrawn. Key Rating Drivers Ind-Ra is no longer required to maintain the rating, as the agency has received a no dues certificate from the lender. This is consistent with Ind-Ra's Policy on Withdrawal of Ratings. Ind-Ra will no longer provide analytical and rating coverage for ALPL. Company Profile Incorporated in 1998, ALPL provides freight contract services mainly for transportation of minerals from mine to port, port to plant and mine to plant. It has 18 vendors and 15 trailers to execute its operations in Odisha, Chhattisgarh, Madhya Pradesh, Gujarat and Maharashtra. AGARWAL RUBBER: Ind-Ra Moves BB+ Loan Rating to Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Agarwal Rubber Limited's bank facilities to non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR99 mil. Term loan due on April 2025 migrated to non- cooperating category with IND BB+ (ISSUER NOT COOPERATING) rating; -- INR450 mil. Fund-based facilities migrated to non-cooperating category with IND BB+ (ISSUER NOT COOPERATING) / IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR280 mil. Non-fund-based facilities migrated to non- cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The issuer did not cooperate, based on the best available information. The rating was last reviewed on August 5, 2022. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the rating. Company Profile Incorporated in 1983, Agarwal Rubber manufactures and sells tires and tubes. Its manufacturing unit is in Patancheru, Medak District, near Hyderabad. The company sells its products under the brand names ARL and Maruti. APEX COCO: Ind-Ra Gives B Bank Loan Rating, Outlook Stable ---------------------------------------------------------- India Ratings and Research (Ind-Ra) has rated Apex Coco and Solar Energy Limited's (ACSEL) bank loans as follows: -- INR220 mil. Fund-based working capital assigned with IND B/ Stable/IND A4 rating; and -- INR1.430 mil. Term loan due on December 2027 assigned with IND B/Stable rating. Key Rating Drivers The ratings reflect ACSEL's medium scale of operations as indicated by a revenue of INR928.71 million in FY23 (FY22: INR1,102.13 million). In FY23, the revenue fell year-on-year due to a decline in exports from European countries on account of the Russia-Ukraine war. Till 9MFY24, ACSEL booked a revenue of INR510 million; it had an order book of INR194.04 million at end-September 2023, to be executed by November 2023. In FY24, Ind-Ra expects the revenue to improve due to an increase in the export and domestic distribution reach with an addition of product range. FY23 financials are provisional in nature. Liquidity Indicator - Poor: ACSEL's average maximum utilization of its fund-based limits was 93.55% during the 12 months ended August 2023 with two instances of overutilization up to two days due to interest charge on the last day of month. The cash flow from operations remained negative at INR92.72 million in FY23 (FY22: negative INR197.82 million); however, the cash flow improved year-on-year due to an improvement in the absolute EBITDA to INR300 million (INR215.74). The net working capital cycle elongated further to 327 days in FY23 (FY22: 95 days) due to an increase in the inventory days to 337 (111) due to the stocking of the coconut available at cheaper prices and an increase in the debtor days to 79 (48). The cash and cash equivalents stood at INR8.22 million at FYE23 (FYE22: INR15.97 million). Furthermore, ACSEL does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. The company has debt repayments of INR429.62 and INR425.59 in FY24 and FY25, respectively. The ratings also reflect ACSEL's weak credit metrics even as its interest coverage (operating EBITDA/gross interest expenses) improved to 1.1x in FY23 (FY22: 0.8x) and net leverage (adjusted net debt/operating EBITDAR) 10.88x (14.45x), due to the increased absolute EBITDA. In FY24, Ind-Ra expects the credit metrics to improve further, due to no major debt-lead capex in the year. The ratings also factor in the ACSEL's modest EBITDA margin of 32.3% in FY23 (FY22: 19.57%) with a return on capital employed of 9.1% (1.6%). In FY23, the EBITDA margin improved on account of a fall in the prices of coconut, its major raw material. In FY23, Ind-Ra expects the EBITDA margin to decline slightly due to the settling of the fluctuating raw material prices at historical levels. However, the ratings are supported by the promoters' nearly four decades of experience in solar power generation and textile industry. This has facilitated the company to establish strong relationships with customers as well as suppliers. Rating Sensitivities Positive: Maintaining the scale of operations, along with an improvement in the overall credit metrics and liquidity profile, all on a sustained basis, could lead to a positive rating action. Negative: A decline in the scale of operations, leading to deterioration in the overall credit metrics with and/or a further pressure on the liquidity position, could lead to negative rating action. Company Profile ACSEL was incorporated in 2012 and is engaged in solar power generation with a total capacity of 30MW and coconut processing in Tirupur, Tamil Nadu. The installed capacity of the coconut processing unit is of 0.4 million coconuts per day. BISMAN INDUSTRIES: ICRA Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------------- ICRA has kept the Long-term ratings of Bisman Industries Limited in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 8.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category Long-term 0.20 [ICRA]D; ISSUER NOT COOPERATING; Non-fund based Rating continues to remain under Others '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. Bisman Industries Limited (BIL) was established in the year 1988 by Mr. Subhash Kumar Poddar in the name of Limtex Industries Ltd having its registered office at Kolkata. The company is engaged in manufacturing of biscuits and trading of tea in the domestic markets, primarily East India in Asansol, West Bengal. BYJU'S: Lenders Move to Put Singapore Unit in Receivership ---------------------------------------------------------- Bloomberg News reports that a lender-appointed receiver has taken steps to assume control of a Byju's unit in Singapore following months of failed negotiations with what was once one of India's hottest tech startups, sources said. Bloomberg relates that the receiver, Kroll, said that it appointed two restructuring experts "to safeguard the charged assets" of Great Learning Education and Byju's. According to Bloomberg, lenders to the online tutoring firm were told last week that Kroll placed the professional training and higher education platform into receivership in Singapore and replaced certain Byju's board members with representatives from Kroll, sources said. Great Learning, which Byju's bought for US$600 million in 2021, may now be sold, Bloomberg says. Byju's and its creditors have been mired in a prolonged restructuring conflict after the firm breached covenants on a US$1.2 billion loan. The company missed an interest payment on the term loan, one of the largest by a startup globally. Bloomberg notes that the standoff marks a reversal for the firm's eponymous founder Byju Raveendran, whose ascent from tutor to the leader of a US$22 billion company captivated investors. As business boomed during the pandemic, Byju's went on an acquisition spree to expand globally, acquiring Singapore-based Great Learning. But demand for online tutoring dropped off as schools reopened. Byju's board members have resigned and many teaching centres are nearly empty. Byju's has been looking to sell units, including Great Learning, to raise funds as part of a broader turnaround plan. According to Bloomberg, Kroll said it appointed Cosimo Borrelli and Jason Aleksander Kardachi to oversee the assets "as part of the secured lenders' exercise of their security rights following defaults by Byju's Alpha Inc". Borrelli serves as Kroll's global co-head of restructuring, while Kardachi leads the company's restructuring work in Singapore and South-east Asia. Mohan Lakhamraju, the founder and chief executive officer of Great Learning, is continuing to lead the company, said Kroll. Lakhamraju had no further comment, his representative told Bloomberg. A representative for Byju's said the firm was working with partners, including Great Learning management and creditors, "for a potential divestment of the company at optimal value", adding: "This, we believe, will allow Great Learning's future growth as an independent company." Based in Bengaluru, Karnataka, India, Byju's operates an online learning platform intended to deliver engaging and accessible education. The company's platform makes use of original content, watch-and-learn videos, animations, and interactive simulations that make learning contextual, visual, and practical, enabling students to receive a personalized educational experience. CARLOO TEXTILE: Ind-Ra Moves BB+ Issuer Rating in Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated all the ratings of Carloo Textile to the non-cooperating category as per Ind Ra's policy on Issuer Non-Cooperation, following non-submission of No Default Statement continuously for 3 months despite continuous requests and follow-ups by the agency and also IND-Ra's inability to validate timely debt servicing through other sources it considers reliable. No Default Statement in the format prescribed by SEBI is required to be shared by the issuer every month as a confirmation that all financial obligations are being serviced on time. Investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB+/Negative/ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR85 mil. Cash Credit migrated to non-cooperating category with IND BB+/Negative rating; -- INR295 mil. Fund Based Working Capital Limit migrated to non- cooperating category with IND BB+/Negative / IND A4+ (Issuer Not Cooperating) rating; and -- INR49 mil. Term loan due on Jul 31, 2024 migrated to non- cooperating category with IND BB+/Negative rating. Company Profile Tirupur, Tamil Nadu-based CT is a proprietorship concern established 2008 by Muthu Kumar. The company manufactures and exports knitted garments. Its manufacturing units are in Tirupur with an installed capacity of 140,000 pieces/day. CHAITANYA ENTERPRISES: ICRA Keeps D Rating in Not Cooperating ------------------------------------------------------------- ICRA has kept the Long-term ratings of Chaitanya Enterprises in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 10.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit '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. Chaitanya Enterprises (CE), established in the year 2010, is engaged in ginning and pressing of cotton. It is a partnership firm promoted by Mr. A. Srinivasa Rao and Smt. A Manimala. The ginning and pressing factory is located in Guntur district of Andhra Pradesh. The ginning facility includes 36 Gins, Auto Pressing and Auto feeder. Each gin has a capacity of producing 70 kgs of lint per hour. Each baling press has a capacity of 15 bales per hour. DIGITAL FACTORY: CARE Keeps D Debt Rating in Not Cooperating ------------------------------------------------------------ CARE Ratings said the ratings for the bank facilities of Digital Factory (DF) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.25 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated September 19, 2022, placed the rating(s) of DF under the ‘issuer non-cooperating' category as DF 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. DF 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). Digital Factory (DF) was established in the year 2013, promoted by Mr. Prasad Nannapaneni. The firm is engaged in manufacturing of iron and wooden furniture. The firm gets the orders from private and government entities. The firm makes products like Tables, Chairs, Racks, and other interior works which is being manufactured for its well know customer. DOLPHIN MARINE: ICRA Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------ ICRA has kept the long-term and short-term ratings for the bank facilities of Dolphin Marine Foods & Processors (India) Private Limited in the 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 2.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category Short Term- (9.00) [ICRA]D; ISSUER NOT COOPERATING; Interchangeable Rating Continues to remain under 'Issuer Not Cooperating' Category Short-term 9.00 [ICRA]D; ISSUER NOT COOPERATING; Non-fund based Continues to remain under the Others '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 1996 by Mr. Rosario D'Souza, Dolphin Marine Foods & Processors (India) Pvt. Ltd. (DMPL) is engaged in processing of sea food products which are mainly exported to Asia and Africa. It commenced operations in 1999 from its 5000 square meters plot in Taloja, MIDC. From 1999 to 2009, DMPL was only involved in pre-processing activities like cleaning, washing and peeling. It started exporting in 2009 as a merchant exporter from the rented facility of Sumraj Sea Foods. It set up its own freezing and cold storage unit in 2011. After receiving licenses from The Marine Products & Export Development Authority (MPEDA) and Export Incentive Agency (EIA), it commenced operation in October 2011. EAST HYDERABAD: CARE Keeps D Debt Rating in Not Cooperating ----------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of East Hyderabad Expressway Limited (EHEL) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 100.50 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated July 27, 2022, placed the rating(s) of EHEL under the ‘issuer non-cooperating' category as EHEL 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. EHEL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 12, 2023, June 22, 2023, July 2, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). East Hyderabad Expressway Limited (EHEL) is a special purpose vehicle incorporated on July 5, 2007 to undertake design, construction, development, finance and operation & management (O&M) of eight-lane access-controlled expressway under Phase-II A program in the city of Hyderabad for the section from Pedda Amberpet to Bongulur, on a stretch of 13 km, under Build, Operate & Transfer (BOT) Annuity basis. The annuity provider is Hyderabad Metropolitan development Authority [erstwhile Hyderabad Urban Development Authority (HUDA)]. EHEL is promoted by ITNL (Rated CARE D; Issuer Not Cooperating), KMC Infratech Limited and KMC Constructions Limited having a shareholding of 74%, 16% and 10% respectively. The project has been awarded under the Annuity scheme by HUDA, and receipt of annuities has commenced post receipt of Provisional Completion Certificate (PCC) dated March 1, 2011. CARE does not have any update on the latest developments in this regard. FENICE CHEMICALS: Voluntary Liquidation Process Case Summary ------------------------------------------------------------ Debtor: Fenice Chemicals India Limited 563, Purbalok Kalilkapur Kolkata West Bengal-700099 Liquidation Commencement Date: September 14, 2023 Court: National Company Law Tribunal, Kolkata Bench Liquidator: Anil Kumar Dubey Meridian Splendora, Tower II 4TH Floor, Flat No. 4F 9A/1Umakant Sen Lane, Kolkata West Bengal-700030 Email: anil@mandaassociates.in Tel No.: 8334984350 Last date for submission of claims: October 13, 2023 GOLD STAR: ICRA Keeps D Debt Ratings in Not Cooperating Category ---------------------------------------------------------------- ICRA has kept the Long-term and Short-term ratings of Gold Star Steels (P) Ltd. in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 5.50 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category Short-term 3.00 [ICRA]D; ISSUER NOT COOPERATING; Non-fund based Rating continues to remain under Others '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. GSSPL was incorporated in 1992 by the Raipur-based Agarwal family. However, the company has been taken over by the Vaswani family in the recent past. GSSPL has facilities for manufacturing high tension steel (HTS) wire, inserts and insulated caps. GVK JAIPUR: ICRA Keeps D Debt Rating in Not Cooperating Category ---------------------------------------------------------------- ICRA has kept the Long-Term rating of GVK Jaipur Expressway Private Limited in the 'Issuer Not Cooperating' category. The ratings are denoted as [ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 209.64 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Term Loan '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. GVKJEPL is a special purpose vehicle promoted by GVK Transportation Pvt Ltd (GVKTPL, 100% shareholding) for widening the existing two-lane section of NH 8 between Jaipur and Kishangarh (from km 273.500 to 363.885) to six lane in Rajasthan through design, build, finance, operate and transfer (DBFOT - toll) model. The project was received in 2002 and the concession period is for 20 years (including a construction period of 2 years), which is ending by March 2023. The total project cost incurred was INR622.30 crore, which was funded through INR121.17-crore equity, INR211 crore of grant from the National Highways Authority of India (NHAI), INR7.8 crore of internal accruals and INR282.33 crore of debt. From May 2016 onwards, the toll collections on GVKJEPL's project stretch were split into two toll plazas instead of one earlier. INDIA MEGA: CARE Keeps D Debt Rating in Not Cooperating Category ---------------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of India Mega Agro - Anaj Limited (IMAAL) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 25.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated September 7, 2022, placed the rating(s) of IMAAL under the 'issuer non-cooperating' category as IMAAL 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. IMAAL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated July 24, 2023, August 3, 2023, August 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). India Mega Agro - Anaj Limited (IMA) was incorporated in 2010 by promoter cum managing director: Mr. Ajay Kumar Baheti. IMA is a part of Dattakrupa group which was formed in the year 2005 through incorporation of Datta Krupa Roller Flour Mill Private Limited (DRFM) at Parbhani. The group started its manufacturing activity with processing of flour mill and dal mill. Later in order to expand & diversify its operations and avail various government benefits attached to the food processing industries, the group incorporated IMA; which was set up by acquiring 50 acres on lease at MIDC in Krushnoor district, Nanded. Over the period of time, the group has set-up various food processing divisions like roller flour mill; cattle & poultry unit in 2015; dal & rice mill in 2016; oil mill & refinery, solvent & biscuit unit in 2017. Currently the group has two manufacturing units located at Parbhani and Nanded. JEPPIAAR POWER: ICRA Keeps D Debt Rating in Not Cooperating ----------------------------------------------------------- ICRA has kept the Long-term rating of Jeppiaar Power Corporation Private Limited in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 92.50 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Term Loan '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. Jeppiaar Power Corporation Private Limited (JPCPL) was incorporated in October 2009 by the Jeppiaar Group which manages a diverse set of businesses in the state of Tamil Nadu. The company is establishing a coal-based Captive Power Plant (CPP) with a total generating capacity of 30 MW in Kanchipuram, Tamil Nadu. KRUSHNA INDUSTRIES: ICRA Keeps D Debt Rating in Not Cooperating --------------------------------------------------------------- ICRA has kept the Long-term ratings of Krushna Industries in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 9.50 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit '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. Established in 1995 as a partnership firm, Krushna Industries (KI) is involved in the ginning and pressing of raw cotton to produce cotton bales and cottonseeds. KI's manufacturing facility at Rajkot (Gujarat) is equipped with 20 ginning machines and a pressing machine, with a production capacity of 14,206 cotton bales and 4,400 cottonseeds per annum. The firm is managed by its partners, Mr. Bhavesh Makwana and Mr. Kala Makwana who have extensive experience in the cotton industry. L.M FOODS: ICRA Keeps D Debt Ratings in Not Cooperating Category ---------------------------------------------------------------- ICRA has kept the long-term rating of L.M Foods in the 'Issuer Not Cooperating' category. The rating is denoted as [ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 23.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category Long Term- 2.00 [ICRA]D; 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. Based in Karnal, L.M. Foods was formed in 1997 as a partnership firm by Mr Madan Lal and Mr Kewal Krishnan. Mrs Krishna Devi and Mr Kewal Krishnan are equal partners in the firm. L.M. Foods is involved in milling and processing of basmati rice. The firm is also engaged in further processing of byproducts like bran and husk. From FY13, the firm has focused only on domestic sales and does not have any export sales. LIMTEX AGRI: ICRA Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------- ICRA has kept the Long-term and Short-term ratings of Limtex Agri Udyog Limited in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 25.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category Long-term 0.50 [ICRA]D; ISSUER NOT COOPERATING; Non-fund based Rating continues to remain under Others 'Issuer Not Cooperating' Category Short-term 8.00 [ICRA]D; ISSUER NOT COOPERATING; Non-fund based Rating continues to remain under Others '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. Limtex Agri Udyog Limited (LAUL) is a part of the Kolkata-based Limtex group, which has interests in tea, biscuits and information technology. LAUL concentrates on the production of CTC variety of tea as well as blending and trading of tea. Apart from production of CTC tea, the company also carries out purchasing of premium quality tea to blend with its lower grade of bought leaf production to enhance the quality of the blended tea. M S RAMAIAH: ICRA Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------- ICRA has kept the long-term ratings for the bank facilities of M S Ramaiah Foundation in the 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 20.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Term Loan 'Issuer Not Cooperating' Category Long-term– 1.25 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category Long Term- 3.75 [ICRA]D; 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. M S Ramaiah Foundation was established as a charitable trust in 2007 to focus on the business education sector. The trust offers undergraduate and post-graduate courses in the fields of business management, commerce, arts and law. Dr. M R Pattabiram is the Managing Trustee of the foundation and the Founder Director of all the institutions under MSRF. In FY2019, the trust reported a net profit of INR1.9 crore on an OI of INR26.1 crore compared to a net profit of INR4.1 crore on an OI of INR29.2 crore in the previous year. MAGNUM AVIATION: CARE Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of Magnum Aviation Private Limited (MAPL) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 9.50 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 8.50 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated September 26, 2022, placed the rating(s) of MAPL under the 'issuer non-cooperating' category as MAPL 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. MAPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated August 12, 2023, August 22, 2023, September 1, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Incorporated in 2002, Magnum Aviation Private Limited (MAPL) is promoted by Mr. Vishal Varshnei and Ms Manvi Varshnei. MAPL is engaged in the trading of aircraft spares such as aircraft wheels, brakes, avionics, propeller hoses, lubricants etc. Additionally, the company also provides Maintenance, Repair & Overhaul (MRO) services for the aircraft components and has its service facility located in Special Economic Zone of Noida, Uttar Pradesh. MAPL caters to the need of both civil and military aircraft customers in overseas markets as well as in domestic markets. NUTRIONEX MANUFACTURES: Liquidation Process Case Summary -------------------------------------------------------- Debtor: Nutrionex Manufacturers Limited (Previously Known as SHRI LAL MAHAL LIMITED) B-16 Bhagwan Dass Nagar New Dlehi DL 110026 India Liquidation Commencement Date: September 19, 2023 Court: National Company Law Tribunal, New Delhi Bench-IV Liquidator: Debashis Nanda CS-14, C Floor, Ansal Plaza Mall, Vaishali, Ghaziabad U.P. Email: dnanda.cma@gmail.com liquidator.nutrionexx@gmail.com Last date for submission of claims: October 21, 2023 ORIEL WINDOWS: Insolvency Resolution Process Case Summary --------------------------------------------------------- Debtor: Oriel Windows Private Limited S. No. 104/6, Tinyindustrial Estate, Pisoli Road, Kondhava Bk. Pune Mamharashtra-411048 Insolvency Commencement Date: August 25, 2023 Estimated date of closure of insolvency resolution process: July 25, 2024 Court: National Company Law Tribunal, Mumbai Bench Insolvency Professional: Umesh Balaram Sonkar 10, OM Shanti Chs, Plot No. 8/10/12, Rd No.4, Sector 11, New Panvel 410206 Email: rosonkar1603@gmail.com Mobile No: 7874447169 8A, Sai Sadan Chamber Preebes CHS, 76/78 Modi Street Fort Mumbai-400 001 Last date for submission of claims: September 12, 2023 PARAMASIVAM PALANISAMY: ICRA Keeps D Rating in Not Cooperating -------------------------------------------------------------- ICRA has kept the Long-term ratings of Paramasivam Palanisamy Charitable Trust in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 23.80 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit '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. Paramasivam Palanisamy Charitable Trust (PPCT) is a registered trust, established on April 23, 1990. The trust, which initially commenced operations with Maharaja Arts and Science College, diversified into engineering sector and currently operates four engineering institutions, two arts and science college, a teacher training institute and Bachelor of Education under it. The colleges are in two campuses - one near Perundurai and another in Avinashi. PENGUINE HOSPITALITY: Liquidation Process Case Summary ------------------------------------------------------ Debtor: Penguine Hospitality Private Limited 8, No Chi Minh Sarani, Ground Floor, Kolkata 700071, West Bengal Liquidation Commencement Date: September 12, 2023 Court: National Company Law Tribunal, Kolkata Bench Liquidator: Sudipta Ghosh 8, N.N. Mukherjee 3rd Lane, Uttarpara, Hooghly-712258 Email: sudipta_ghosh08@yahoo.com 29C, Bentinck Street, 2nd Floor, Kolkata-700069 Email: liq.penguine@gmail.com Last date for submission of claims: October 11, 2023 PRANI AUTO: ICRA Keeps D Debt Ratings in Not Cooperating Category ----------------------------------------------------------------- ICRA has kept the long-term ratings for the bank facilities of Prani Auto Plaza Private Limited in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 4.40 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Term Loan 'Issuer Not Cooperating' Category Long-term– 13.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category Long Term- 0.35 [ICRA]D; 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. Prani Auto Plaza Private Limited was started as a partnership firm in 2003 and was subsequently converted to a private limited company in 2009. The company is the authorized dealer of passenger vehicles of Tata motors limited (TML) in Anantapur and Kurnool districts in Andhra Pradesh. The company opened its first showroom in Ananthapur in 2003, followed by showrooms in Kurnool in 2007 and Nandyal in 2009. These three showrooms are in the company's own buildings. Additionally, the company opened showrooms in Hindupur (2011) and Tadipatri (2012) on a lease basis. In January 2013, it opened one more showroom in Tirupati as the existing dealer in the district withdrew from the dealership. REDDY AND REDDY: CARE Keeps C Debt Rating in Not Cooperating ------------------------------------------------------------ CARE Ratings said the ratings for the bank facilities of Reddy and Reddy Motors (RRM) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 10.10 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 1.00 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 16, 2022, placed the rating(s) of RM under the 'issuer non-cooperating' category as RRM 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. RRM continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated August 2, 2023, August 12, 2023, August 22, 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). Reddy & Reddy Motors (RRM) is a partnership firm, incorporated in February 2010 by Mr. G. Ramakrishna Reddy, Mr. G. Venkata Reddy and Mr. Srirama Reddy. Mr. G Ramakrishna Reddy is the Managing Partner of the firm. RRM is authorized dealer of Maruti Suzuki India Limited (MSIL) based in Eluru (Andhra Pradesh). It started its operations in June 2010 with a showroom in Eluru. RRM belongs to Reddy and Reddy Group which has diverse interests including trading of prawns feed, authorized dealership of MSIL and Hero Motors and is also engaged in button manufacturing business. ROOP TECHNOLOGY: ICRA Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- ICRA has kept the Long-term and short-term ratings of Roop Technology Private Limited in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 14.37 [ICRA]D; ISSUER NOT COOPERATING; Fund based/ Rating Continues to remain under Non-Fund 'Issuer Not Cooperating' Based-Others Category Long Term- (14.37) [ICRA]D; ISSUER NOT COOPERATING; Interchangeable Rating Continues to remain under 'Issuer Not Cooperating' Category Long-term/ 0.63 [ICRA]D/[ICRA]D; ISSUER NOT Short Term COOPERATING; Rating Continues to Unallocated remain under 'Issuer Not Cooperating' Category Short Term- (7.57) [ICRA]D; ISSUER NOT COOPERATING; Interchangeable 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. Incorporated in 1998, RTPL is a distributor of several IT and security-related products, LCDs and projectors. It is an authorized distributor of View Sonic for its LCD monitors, ZICOM and Dahua for security products, TP-Link for networking products, Godrej and Boyce for security safes and Optoma for projectors. RTPL has 10 branches across southern and western India. SAMRAT PLYWOOD: CARE Lowers Rating on INR39.48cr LT Loan to D ------------------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of Samrat Plywood Limited, as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 39.48 CARE D Revised from CARE BB-; Facilities Stable Short Term Bank 2.60 CARE D Revised from CARE A4 Facilities Rationale and key rating drivers The revision in the ratings assigned to the bank facilities of Samrat Plywood Limited takes into consideration the delay in debt servicing of term loans. Rating sensitivities: Factors likely to lead to rating actions Positive factors * Delay/default free track of 90 days. * Infusion of funds by promoters to improve the liquidity position. Analytical approach: Standalone. CARE has revised the approach from the combined to standalone since there is no common control among the group companies, namely, Samrat Plywood Limited, and Samrat Laminates Private Limited. Detailed description of the key rating drivers: Key weaknesses * Delay in debt servicing: As per the banker's feedback, the company has defaulted in the repayment of term loan for the month of July 2023 due to delay in receipt of payments from the export receivables leading to a stretch in liquidity. Liquidity: Poor The company has poor liquidity position as marked by delays in payment of interest and instalment for term loans. Samrat Plywood Limited was incorporated in the year 1987 by Mr. Rajiv Singhal, managing director. At present, the company is being manged by three directors: Mr. Rajiv Singhal, Mr. Puneet Singhal (brother of Mr. Rajiv Singhal) and Mr. Raghav Raj Singhal (son of Mr. Rajiv Singhal). The overall day to-day operations of the company are being looked after by Mr. Rajiv Singhal and Mr. Raghav Singhal. The company is engaged in the manufacturing of plywood, laminates, compact laminates, and cladding at its two manufacturing facilities located in Derabassi, Punjab and Nalagarh, Himachal Pradesh. The company sells its products under the brand name "Samrat" across the country. The product profile of the company constitutes different plywood viz. waterproof plywood, commercial plywood, high pressure plywood, and block boards, flush doors, commercial boards, decorative veneers, etc. and Decorative Laminates. The products of the company mainly find application in the furniture and real estate industry. SANGAM HANDICRAFT: CARE Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of Sangam Handicraft Private Limited (SHPL) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 5.80 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 0.75 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 7, 2022, placed the rating(s) of SHPL under the 'issuer non-cooperating' category as SHPL 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. SHPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated July 24, 2023, August 3, 2023, August 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). Jaipur (Rajasthan) based Sangam Handicraft Private Limited (SHPL) was established in 1997 as a private limited company by Mr. Shubhash Gupta and his family members. SHPL is engaged in manufacturing of silver and gold coins, biscuits shields, Trophy's, Utensils etc. SARTHAK ISPAT: Ind-Ra Keeps BB+ Loan Rating in NonCooperating ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Sarthak Ispat Private Limited's (SIPL) bank facility ratings in the non-cooperating category and has simultaneously withdrawn the same. The detailed rating actions are: -- INR210 mil. Fund-based working capital limit* maintained in non-cooperating category and withdrawn; and -- INR77.8 mil. Term loan* maintained in non-cooperating category and withdrawn. Note: ISSUER NOT COOPERATING: based on the best available information. The ratings were last reviewed on February 5, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. *Maintained at 'IND BB+ (ISSUER NOT COOPERATING)' before being withdrawn Key Rating Drivers Ind-Ra has maintained the ratings in non-cooperating category because the issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency through emails and phone calls and has not provided information pertaining to the sanctioned bank facilities and utilization, latest financial statements, business plans and projections for the next three years, and information on corporate governance. Ind-Ra is no longer required to maintain the ratings, as the agency has received a no-objection certificate from the rated facilities' lender. This is consistent with Ind-Ra's Policy on Withdrawal of Ratings. Ind-Ra will no longer provide analytical and rating coverage for SIPL. Company Profile SIPL manufactures and supplies premium quality mild steel products such as mild steel angles, mild steel beams, mild steel channels, and mild steel round bars. The company uses high-grade billet for manufacturing these products. SASWAD MALI: Ind-Ra Cuts Bank Loan Rating to C ---------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded The Saswad Mali Sugar Factory Ltd.'s (SMSFL) bank facilities' to 'IND C' from 'IND B+'. The Outlook was Stable. The detailed rating action is as follows: -- INR1,294.8 bil. (reduced from INR1,314.7 bil.) Fund-based working capital limits downgraded with IND C rating; and -- INR308.2 mil. (reduced from INR435.13 mil.) Term loans due on March 31, 2026 downgraded with IND C rating. The downgrade reflects SMSFL's ongoing delays in servicing of a term loan (not rated by Ind-Ra) as of September 2023, availed from the Sugar Development Fund (SDF), on account of its tight liquidity position. However, Ind-Ra has received confirmation that there has been no delay in servicing of the bank facilities rated by the agency. Key Rating Drivers Liquidity Indicator - Poor: SMSFL has applied for restructuring of the term loan availed from SDF. As of July 2023, INR258.56 million of the term loan from SDF was outstanding. The company's debt service coverage ratio was below 1.0x in FY23 and is likely to remain so in the near term, leading to a continued weak liquidity position. The company had outstanding debt of INR343.5 million as of July 2023. All the facilities other than the SDF loan have been serviced timely in the 12 months ended September 2023. SMSFL has scheduled repayments of INR149.74 million in FY24 and INR148.61 million in FY25. As per FY23 provisional financials, the cash and cash equivalents stood at INR6.98 million at FYE23 (FYE22: INR32.27 million). The net working capital cycle improved to 97 days in FY23 (FY22: 128 days), although remained elongated, due to a reduction in the inventory holding period to 161 days (240 days). The average maximum utilization of the fund-based limits was 60.22% during the 12 months ended July 2023, which could aid the liquidity; although, availability of sufficient drawing will be a determinant to the usable cushion. The cash flow from operations increased to INR394.20 million in FY23 (FY22: INR152.79 million) due to favorable changes in working capital. Consequently, the free cash flow improved to INR272.85 million in FY23 (FY22: INR152.79 million), partially offset by capex of INR121.35 million incurred during the year (nil). The company does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. The ratings reflect SMSFL's continued modest credit metrics. The gross interest coverage (operating EBITDA/gross interest expense) improved to 1.60x in FY23 (FY22: 0.97x) and net financial leverage (adjusted net debt/operating EBITDA) to 5.38x (8.09x), due to an increase in the EBITDA to INR278.9 million (INR232.11 million) and a lower utilization of the fund-based working capital limits. In FY24, Ind-Ra expects the credit metrics to remain at similar levels. The ratings continue to factor in SMSFL's modest EBITDA margin of 8.63% in FY23 (FY22: 7.54%) with a return on capital employed of 9.3% (9.8%). The increase in margin was due to a reduction in personnel and administration expenses. Ind-Ra expects the EBITDA margin to improve further in FY24 owing to the increase in sugar prices. The ratings also reflect SMSFL's continued medium scale of operations, despite a growth in the revenue to INR3,231.60 million in FY23 (FY22: INR3,079.35 million). The increase in revenue was due to an increase in sugar revenue to INR2,163 million (INR1,944 million) and non-sugar revenue to INR1,068.6 million (INR875 million). The molasses ethanol sales improved to INR386 million in FY23 (FY22: INR214 million) due to an increase in production to 6,634 kilo liters (3,657 kilo liters). In FY23, SMSFL crushed 482,479 metric tons (mt) of cane juice (FY22: 606,209.76mt) and sold 66,233mt of sugar (60,778mt) with a recovery rate of 9.43% (9.4%). In FY24, management expects to crush 5,20,000mt of cane juice. Rating Sensitivities Positive: An improvement in liquidity and/or sanctioning of restructuring by SDF or regularization of repayments of term loan availed from SDF while maintaining the scale of operations and credit metrics, will lead to a positive rating action. Negative: Delays in servicing of debt facilities rated by Ind-Ra, will lead to a negative rating action. Company Profile Incorporated in 1932, SMSFL operates a sugar mill in Solapur, Maharashtra. The company has a daily sugarcane crushing capacity of 4,500 metric tons. It also has a molasses distillery with 50 kilo liters per day capacity, a grain distillery with 30 kilo liters per day capacity and 14.8MW co-generation unit. SHIVASHAKTI SUGARS: Ind-Ra Affirms BB+ Bank Loan Rating ------------------------------------------------------- India Ratings and Research (Ind-Ra) has taken the following rating actions on Shivashakti Sugars Limited's (SSL) bank loans: -- INR2.30 bil. Fund-based working capital limit affirmed with IND BB+/Stable rating; -- INR700 mil. Fund-based working capital limit assigned with IND BB+/Stable rating; and -- INR200 mil. Term loan due on February 28, 2030 affirmed with IND BB+/Stable rating. Key Rating Drivers The ratings reflect SSL's continued weak credit metrics in FY23, despite an improvement, owing to the high working capital-intensive and seasonal nature of the business. In FY23, the gross interest coverage (operating EBITDAR/gross interest expense + rents) improved to 2.08x (FY22: 1.53x) and the net leverage to 4.91x (8.82x) owing to a decline in its debt levels to INR5,898.29 million (INR7,491.20 million). The decrease in debt was due to term loan repayments and lower utilization of the fund-based limits. However, Ind-Ra expects the credit metrics to deteriorate marginally in the near-to-medium term on account of the ongoing debt-funded capex for capacity expansion. FY23 financials are provisional in nature. SSL is enhancing its cane crushing capacity to 17,000 tons per day (TCD) from 10,000TCD. The total estimated project cost of INR1,593 million is likely to be funded by term loan of INR1,200 million, INR100 million of equity infusion from promoters and the balance through internal accruals. Of this, the company incurred INR1,499.18 million in FY23 in the form of internal accruals of INR800 million, equity infusion of INR100 million and capex creditors of INR549.18 million. The company has received a term loan sanction of INR1,000 million in August 2023, which mitigates the creditor funding risk. The project is likely to be completed by end-November 2023. Hence, timely commissioning and optimum utilization of the increased capacities remains key rating monitorable. Liquidity Indicator - Stretched: The cash and cash equivalents stood at INR98.57 million at FYE23 (FYE22: INR216.3 million). The company does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. The cash flow from operations turned positive to INR1,991.93 million in FY23 (FY22: negative INR611.80 million), owing to favorable changes in working capital. Consequently, the free cash flow turned positive to INR1,376.88 million in FY23 (FY22: negative INR726 million). SSL's maximum average use of the fund-based limits (pledge loans) was 62.59% over the 12 months ended July 2023 and is likely to have been at similar levels until September 2023. The company has scheduled debt repayments of INR259.63.96 million in FY24 and INR355.85 million in FY25, which are likely to be met through internal accruals. The net working capital cycle improved significantly to 123 days in FY23 (FY22: 324 days) on account of higher inventory realization on the back of higher rates received from its customers. The ratings continue to reflect SSL's large scale of operations. The revenue grew significantly to INR10,143.82 million in FY23 (FY22: INR6,005.80 million) owing to an increase in sugar sales to INR8,312.22 million (INR4,516.1 million) due to increased liquidation of sugar inventory on the back of higher quota allotted by the central government during the year. Sugar accounted for 81.94 % of the total revenue in FY23 (FY22: 75%), followed by sales of molasses at 10.2% (14%). SSL commenced its crushing during 5 October 2022 to 25 February 2023, with a recovery rate of 10.6%. However, Ind-Ra expects the revenue to slightly decline in the near-to-medium term on account of lower sugar sales, owing to a likely lower sugar production in FY24 with low inventory levels carry forwarded at FYE23. The ratings also reflect SSL's continued modest EBITDA margins, owing to the regulated nature of the sugar industry. The margins fell to 11.64% in FY23 (FY22: 13.74%), due to an increase in purchase cost and a fall in sugarcane production, resulting from lower sugarcane availability. Although the EBITDA margins declined in FY23, the absolute EBITDA improved to INR1,180.74 million (FY22: INR825.0 million), owing to an increase in the revenue. The return on capital employed was 15.43% FY23 (FY22: 8.1%). However, the ratings remain supported by the promoters' experience of more than two decades in the sugar industry. Rating Sensitivities Positive: The sustainability of the revenue and profitability, the net leverage reducing below 4.0x and an improvement in the overall liquidity position, all on a sustained basis, could lead to a positive rating action. Negative: Any significant decline in the revenue or profitability, leading to a further stretch in the liquidity position or any deterioration in the credit metrics, could result in a negative rating action. Company Profile SSL was set up in 1995 by Dr. Prabhakar B Kore. SSL was issued license for setting up a sugar manufacturing unit in 1995; however, it was unable to launch the project till 2000 for various reasons. Subsequently, SSL was acquired by KPR Sugar Mills Pvt Ltd (part of KPR group, Coimbatore) in early 2000. The company was reacquired by Dr. Kore in April 2010. Initially, the company set up a sugar plant with an installed capacity of 3,500TCD and a bagasse-based 15 MW co-generation capacity As of FY23, SSL had a sugar production capacity of 10,000TCD and 37MW of co-generation capacity. The company currently sells sugar to local traders and has started supplying sugar to Hindustan Coca Cola Beverages Private Limited. SHRIVIDYA EDUCATION: ICRA Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------------- ICRA has kept the Long-term rating of Shrividya Education Foundation in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 52.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Term Loan 'Issuer Not Cooperating' Category Long Term- 88.00 [ICRA]D; 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. Shrividya Education Foundation (SEF) is an education trust established in 2008 in Mangalore, Karnataka. The trust was initially formed as Vidya Education Trust and was later renamed as Shrividya Education Foundation in April 2013. SEF's first education institute "Brilliant Pre-University College" was set up in 2010 at Mangalore. However, the trust was reconstituted in July 2016 and the activities were separated into two different trusts. Subsequently, "Brilliant PreUniversity College" was transferred under a new trust. Currently SEF manages a new institution "Pana P.U. College" which became operational from AY2016. Going forward the trust also plans to start Graduate courses, Pre-school, International school and Design school. SPONGE SALES: Ind-Ra Keeps BB Loan Rating in Non-Cooperating ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has maintained Sponge Sales India Private Limited's bank facilities in the non-cooperating category and has simultaneously withdrawn the same. The detailed rating actions are: -- INR100 mil. Fund-based working capital limit* maintained to non-cooperating category and withdrawn; and -- INR260 mil. Non-Fund-based working capital limit** maintained to non-cooperating category and withdrawn. *Maintained at IND BB (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) before being withdrawn ** Maintained at IND A4+ (ISSUER NOT COOPERATING) before being withdrawn Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information Key Rating Drivers Ind-Ra has maintained the ratings to the non-cooperating category because SSIPL did not participate in the rating exercise despite continuous requests and follow-ups by the agency through emails and phone calls and has not provided information pertaining to the audited financials, interim financials, management certificate and bank limit utilizations. This is in accordance with Ind-Ra's policy of 'Guidelines on What Constitutes Non-cooperation'. Ind-Ra is no longer required to maintain the ratings, as the agency has received a no-objection certificate from the lender and withdrawal request from the issuer. This is consistent with Ind-Ra's Policy on Withdrawal of Ratings. Ind-Ra will no longer provide analytical and rating coverage for the company. Company Profile Incorporated in 1994, SSIPL supplies raw materials to induction furnace and arc furnace facilities in north India and major sponge iron producers across the country. SRINIVASA EDUCATIONAL: CARE Keeps D Debt Rating in Not Cooperating ------------------------------------------------------------------ CARE Ratings said the ratings for the bank facilities of Srinivasa Educational Academy (SEA) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 37.20 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 5, 2022, placed the rating(s) of SEA under the 'issuer non-cooperating' category as SEA 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. SEA continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated July 22, 2023, August 1, 2023, August 11, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The trust was incorporated in 1998 by Dr R Venkataswamy, a philanthropist and an educationist, to render educational and development facilities in the rural areas of Chittoor District in Andhra Pradesh (A.P.). The oldest educational institute of the trust is Sri. R.K.M Law College started in 1991-1992 which was taken over from Swami Vivekananda Society. His family members are the trustees for SEA. SEA currently manages eleven educational institutions, which include engineering, law, computer science, pharmacy, business management, nursing, medicine, etc. SEA also provides hostel facilities to its students, teachers and other staffs. The trust had set-up a 362 bedded hospital in 2013. Out of the eleven institutes, two institutes are located in Hyderabad, Telangana while the rest are in Chittoor district, A.P. STEELFAB ENGINEERING: ICRA Keeps D Debt Rating in Not Cooperating ----------------------------------------------------------------- ICRA has kept the Long Term rating of Steelfab Engineering Corporation in the 'Issuer Not Cooperating' category. The rating is denoted as [ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 60.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Term Loan '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. Promoted by Late Pramod Shah in 1970, Steelfab Engineering Corporation was originally engaged in designing, engineering, detailing, manufacturing, erecting, and cladding of pre-engineered buildings. In 1994, however, the promoters shifted these operations to other sister concerns and ventured into the real estate sector. The firm is currently managed by Mr. Jignesh P. Shah, Mr. Chirag P. Shah and Mrs. Jyoti P. Shah. The firm commenced developmenof its first independent real estate project under its division, ANA Realty, in January 2014. The project is proposed to include six residential towers and one commercial tower and is proposed to be developed in phases. Phase I is proposed to comprise 176 flats in two towers of 22 floors each. STERLING AND WILSON: Ind-Ra Cuts Bank Loan Rating to D ------------------------------------------------------ India Ratings and Research (Ind-Ra) has downgraded Sterling and Wilson Renewable Energy Limited's (SWREL) bank facilities' ratings to 'IND D' from 'IND BB-' while resolving the Rating Watch with Negative Implications. The instrument-wise rating actions are: -- INR2.720 bil. Fund-based working capital facilities (Long term/short term) downgraded; off Rating Watch with Negative Implication with IND D rating; -- INR61.460 bil. Non-fund-based working capital facilities (Long term/short term) downgraded; off Rating Watch with Negative Implication with IND D rating; -- INR15.50 bil. Term loan (Long term) due on March 2027 downgraded; off Rating Watch with Negative Implication with IND D rating; -- INR780 mil. Proposed fund-based working capital facilities (Long term/short term) downgraded; off Rating Watch with Negative Implication with IND D rating; and -- INR32.540 bil. Proposed non-fund based working capital facilities (Long term/short term) downgraded; off Rating Watch with Negative Implication with IND D rating. Analytical Approach: Ind-Ra continues to take a consolidated view of SWREL and its subsidiaries on account of the strong strategic and operational linkages among them. The downgrade and resolution of Rating Watch with Negative Implications reflect SWREL's delays in timely servicing of its debt obligations during September 2023 owing to its poor liquidity situation. Furthermore, the agency believes the company's operating cash flows would not be sufficient to meet its debt obligations in October 2023 as well. The liquidity situation worsened owing to the invocation of bank guarantees (BG) at its foreign subsidiary, Sterling and Wilson Solar Solutions Inc. SWREL had previously informed the agency that the company planned to meet the near-term financial obligations through a mix of tie-up of additional debt facilities, project advances, collection of receivables and early request of claim receipt under the indemnity agreement; however, the aforementioned measures have proven to be insufficient, leading to the default. Over the 12 months ended August 2023, the agency had received no-default statements from SWREL on a regular basis as per the Securities and Exchange Board of India's requirement (circular number SEBI/HO/MIRSD/MIRSD4/CIR/P/2017/71 dated August 10, 2021). Key Rating Drivers Liquidity Indicator - Poor: SWREL had a scheduled repayment of INR4,261 million in September 2023, out of which INR2,177 million (INR1,350 million, excluding invoked BG) was not paid on the due date due to insufficient liquidity. Furthermore, the internal cashflow would be inadequate to meet the repayments of INR3,323 million (INR2,200 million excluding invoked BG) in October 2023. During 1QFY24, the overseas subsidiary received an intimation regarding the invocation of BGs amounting to INR3.9 billion (USD47.2 million) with respect to two projects. The company has partially honored the BGs; however, as on 30 September 2023, around INR2.7 billion (USD33.1 million) was yet to honored. While Ind-Ra expects a recovery in the operating performance in FY24, with the company's gross margin having turned positive in 1QFY24, the accruals from operations will not be sufficient to meet the near-term repayment obligations. The management intends to honor the balance BGs and the scheduled repayments through raising of funds by way of issuance of equity shares, global depository receipts, depository receipts, foreign currency convertible bonds fully/partly convertible debentures, non-convertible debentures, and/or any other financial instruments convertible into equity shares (including warrants) or a combination of any of the securities mentioned above in one or more tranches through one or more public and/ or private offerings, including by way of a qualified institutions placement, or any combination for an aggregate amount not exceeding INR15 billion. The said fund-raising plan was approved by the board of directors on September 27, 2023. The net working capital cycle (debtors including unbilled revenue plus inventory and security deposits less creditors including advances) elongated to around 58 days in FY23 (FY22: negative two days), mainly due to an increase in trade receivable days to 143 days (55 days) and fall in trade payable days to 86 days (91 days). Credit Metrics Likely to Remain Weak During FY24: On a consolidated basis, the credit metrics deteriorated in FY23 as the company availed a large debt to meet working capital requirements and fund the operating loss, which is mainly attributed to the legacy international projects. The gross debt increased to around INR20 billion at FYE23 (FYE22: INR4.35 billion). Moreover, during 1QFY24, the company raised commercial paper of INR1 billion, and the net debt stood at INR21 billion as on 30 June 2023. Ind-Ra expects the credit metrics to remain weak during FY24 as a material reduction in debt is likely only by the end of the year. Rating Sensitivities Positive: Timely debt servicing for at least three consecutive months could result in a positive rating action. Company Profile SWREL is one of the largest non-original equipment manufacturers and solar engineering, procurement and construction players globally with a diversified presence across geographies. It was demerged from Sterling and Wilson Private Limited (IND BBB-/Rating Watch with Negative Implications/IND A3/ Rating Watch with Negative Implications) in March 2018. SWREL has been listed on the BSE Limited and National Stock Exchange of India Limited since August 2019. TBPR INFRA: ICRA Keeps D Debt Ratings in Not Cooperating Category ----------------------------------------------------------------- ICRA has kept the Long-term ratings of TBPR Infra Projects Private Limited in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 7.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category Long-term 9.50 [ICRA]D; ISSUER NOT COOPERATING; Non-fund based Rating continues to remain under Others 'Issuer Not Cooperating' Category Long Term- 17.50 [ICRA]D; 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. Incorporated in 2007 by Mr. Bhanu Prakash Reddy, TBPR Infra Projects Private Limited (TIPPL) is primarily involved in execution of irrigation projects like canals, tanks, dams and barrages etc. The company is also involved in execution of road projects. TIPPL is registered with various government authorities as a contractor. The company has executed government contracts directly for projects in Adilabad, Hyderabad, Nalgonda, Nizamabad and Warangal districts of Telangana. TECHNO INDIA: ICRA Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------- ICRA has kept the Long-term ratings of Techno India in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 16.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category Long-term– 9.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Term Loan '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. Techno India (TI) was established in 2001 as a trust in Kolkata, West Bengal and manages three colleges offering under and post graduate courses across engineering, management and computer application. TI also manages eight primary and secondary level schools. Techno India College is the flagship college of the trust contributing significant proportion of the total fee income of the trust. YAXIS STRUCTURAL: Ind-Ra Gives BB Loan Rating, Outlook Stable ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has rated Yaxis Structural Steels Private Limited's (YSSPL) bank facilities at 'IND BB'. The Outlook is Stable. The instrument-wise rating actions are: -- INR300 mil. Fund-based limits assigned with IND BB/Stable/ IND A4+ rating; -- INR50 mil. Term loans due on March 2030 assigned with IND BB/ Stable rating; and -- INR50 mil. Non-fund-based limits assigned with IND A4+ rating. Key Rating Drivers The ratings reflect YSSPL's modest credit metrics in FY23 as indicated by its gross interest coverage (operating EBITDA/gross interest expenses) of 2.76x (FY22: 1.69x) and net leverage (adjusted net debt/operating EBITDAR) of 5.47x (11.49x). The credit metrics improved yoy in FY23 due to an improvement in the absolute EBITDA to INR66.55 million (FY22: INR16.78 million; FY21: INR10.84 million). Ind-Ra expects the credit metrics to remain at similar levels in FY24, owing to similar EBITDA levels and no major debt-led capex. FY23 financials are provisional in nature. The ratings further reflect YSSPL's average EBITDA margin of 4.91% in FY23 (FY22: 1.75%; FY21: 2.25%), on account of a trade commission income of INR31.70 million and better absorption of fixed costs. The return on capital employed was 14.1% in FY23 (FY22: 3%; FY21: 4%). Ind-Ra expects the EBITDA margin to remain at similar levels in FY24. Liquidity Indicator – Stretched: YSSPL's average maximum utilization of the fund-based limits was 92.51% during the 12 months ended July 2023. The cash flow from operations turned negative at INR140.98 million in FY23 (FY22: INR29.02 million), due to adverse changes in the working capital. The free cash flow remained negative and deteriorated to INR125.54 million in FY23 (FY22: negative INR4.64 million) as a result of the decline in the cash flow from operations. The net working capital cycle elongated to 93 days in FY23 (FY22:60 days), due to increase in debtor days to 33 (10) and inventory days to 63 (51). The cash and cash equivalent balance stood at INR0.91 million in FY23 (FY22: INR0.92 million). YSSPL has a repayment obligation of INR5.5 million in FY24 and INR6 million for FY25. YSSPL does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. The ratings also take into consideration YSSPL's customer concentration risk as 49.5% of its total turnover is contributed by three of the customers; however, the company is increasing its customer base yoy to minimize the customer concentration risk. The ratings also reflect the company's medium scale of operations with revenue of INR1,355.48 million in FY23 (FY22: INR958.06 million; FY21: INR481.77 million) owing to a better sales realization and higher volumes, backed by the growing demand for Steel. Mild steel flats, the top revenue generating product, contributed 51.34% to the total revenue in FY23 (FY22: 78.65%). YSSPL booked a revenue of INR747 million in 5MFY24 and the management expects the revenue to be around INR1,700 million in FY24, backed by repeat orders from existing customers and an addition of new customers. The ratings are supported by the promoters' nearly three decades of experience in steel manufacturing, leading to well-established relationships with customers as well as suppliers. Rating Sensitivities Negative: A substantial decline in the scale of operations or the net leverage and deterioration in the liquidity profile could lead to a negative rating action. Positive: A substantial increase in the scale of operations, along with an improvement in the overall credit metrics with the net leverage below 4.5x and an improvement in liquidity profile, on a sustained basis, could lead to a positive rating action. Company Profile YSSPL, incorporated in June,2019 is a Pune based company, involved in manufacturing of structural steel products such as W-Beam, serrated flat bars, plain flat bars, beam, channel, angle, round bar, square bar and RSJ Pole. ZYEX CHEMICALS: Ind-Ra Gives BB- Loan Rating, Outlook Stable ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has rated Zyex Chemicals LLP's (ZCLLP) term loan as follows: -- INR850 mil. Term loan due on April 30, 2031 assigned with IND BB-/Stable rating. Key Rating Drivers The rating reflects the under-construction status of ZCLLP's ethanol manufacturing unit in Morena district, Madhya Pradesh. The plant would have an installed capacity of 100 kilo liters per day (KLPD) along with a 2.2 MW captive power generation plant for supply to oil and marketing companies under the government of India's ethanol blending programme. The construction of the unit is underway and the management has informed the agency that the trial run of the mill is likely to start from September 2024 and commercial operations are likely to commence from October 2024. Liquidity Indicator - Poor: The projects entail a total investment of INR1,355.9 million, of which INR850 million would be funded through bank debt (62.7%), INR300 million via equity capital (22.1%), and the remaining INR205.9 million through unsecured loans (15.2%). Of the total cost, ZCLLP had already availed INR60 million of term loans, INR150 million of equity capital and INR10 million of unsecured loans from the promoters as of September 30, 2023. The agency expects the remaining capex to be completed by August 2024. ZCLLP does not have any revolving facilities. The company's day-to-day requirements will be met through fund-based working capital limits, which will be disbursed post the commencement of operations. In the event of a delay in the completion of the remaining capex, the expenses will be funded by the promoters; however, it could impact the debt service coverage ratio. The repayment obligations will commence from FY2025, with INR93.6 million and INR127.2 million scheduled to be repaid in FY26 and FY27, respectively. ZCLLP does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. The rating, however, benefits from healthy demand for ethanol in the country, aiding its revenue visibility over the medium term. The project also has locational advantages, given its proximity to ample raw material sources. In addition, it would be entitled to receive various fiscal benefits under the National Biofuel Policy 2018, which would support its profitability post the commencement of operations. The central government's move to advance the ethanol blending target to 2025 from 2030 has created strong demand for ethanol, thereby supporting the financial performance of the distillery units for manufacturing ethanol. Rating Sensitivities Negative: Any delay in the commencement of operations and achievement of stability in the operating performance after the commencement of commercial operations, affecting the company's debt servicing ability, could be negative for the ratings. Positive: The timely commencement of operations and the subsequent achievement of stable operating profitability will be positive for the ratings. Company Profile Incorporated in 2019, ZCLLP is setting up an ethanol manufacturing unit with an installed capacity of 100klpd in Sitapur Phase-II in Morena district, Madhya Pradesh. Pankaj Singal and Ritu Singal are the promoters. The registered office is in Connaught Place, New Delhi. ================= I N D O N E S I A ================= MEDCO ENERGI: Moody's Affirms 'B1' CFR, Outlook Remains Stable -------------------------------------------------------------- Moody's Investors Service has affirmed the B1 corporate family rating of Medco Energi Internasional Tbk (P.T.) and maintained the outlook at stable. Moody's has also affirmed the B1 ratings on the outstanding backed senior unsecured bonds issued by Medco's wholly-owned subsidiaries. These bonds are unconditionally and irrevocably guaranteed by Medco. The outlooks on these ratings are also maintained at stable. At the same time, Moody's has assigned a B1 rating and a stable outlook to Medco's proposed senior unsecured bond to be issued by Medco Maple Tree Pte. Ltd., a wholly-owned financing subsidiary of Medco. "The ratings affirmation reflects Moody's expectations that Medco's credit metrics will remain strong over the next 12-18 months. Moody's forecast its retained cash flow/adjusted debt will be around 20%-25% and its leverage will stay under 3.0x over the same period," says Rachel Chua, a Moody's Vice President and Senior Analyst. "The ratings remain constrained due to the company's inorganic growth strategy, uncertainty around the impact of the company's announced acquisition in the Middle East and outcome of its ongoing discussions with PGN on the renewal of its gas sales agreement," adds Chua, who is also the lead analyst for Medco. RATINGS RATIONALE Medco is finalizing its discussions with Perusahaan Gas Negara (P.T.) (PGN, Baa2 stable) on the renewal of its gas sales agreement for gas volumes accounting for around 40% of its total gas production. Unfavorable terms on the contract renewal such as significantly lower net returns to Medco would be credit negative. Moody's projects Medco will generate annual EBITDA of around $1.0 billion-$1.1 billion over the next two years. The agency's projections reflect its medium-term oil price assumption of $55-$75 per barrel. Nonetheless, given that fixed-price gas accounts for around 60% of Medco's production, oil price volatility will not affect Medco to the same degree as it will for its peers. Medco's B1 CFR continues to reflect its moderate scale of production; and revenue visibility from its fixed-price natural gas sales agreement, which accounts for around 60% its production volume. It also takes into account the company's strong credit metrics and very good liquidity. The company's proactive liability management over the past year has also helped to support its credit metrics. In 2022, Medco bought back $402 million of US dollar bonds through a tender offer and subsequent secondary market repurchases using a mixture of cash and bank borrowings, which resulted in interest savings of around $10-$15 million annually. At the same time, Medco's CFR is constrained by its growth appetite through acquisitions and capital investments, its limited reserve life, its exposure to cyclical commodity prices, and execution risks associated with its ConocoPhillips Indonesia Holding Ltd (CIHL) acquisition as well as the recently announced acquisition. The stable rating outlook reflects Moody's expectation that Medco will maintain very good liquidity and that its credit metrics will remain strong over the next 12-18 months. Moody's also expects the company will continue to maintain financial discipline even as it pursues growth. Medco's liquidity is very good over the next 12-18 months. As of June 30, 2023, Medco had cash and cash equivalents of around $304 million, cash in escrow for debt and interest repayment of around $137 million, and undrawn credit facilities of around $469 million, excluding Medco Power Indonesia (P.T.). As such, Medco does not have near-term liquidity issues as Moody's expects the company to generate sufficient operating cash flow to address its spending requirements. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade of Medco's rating could occur if (1) the company maintains its strong credit metrics and its very good liquidity profile; (2) provides greater clarity around the scale and pace of its longer-term growth plans. Credit metrics supportive of an upgrade include: -- Adjusted debt/EBITDA below 3.0x, -- Adjusted retained cash flow (RCF)/debt above 20%, and -- Adjusted EBITDA/interest expense above 4.5x Downward pressure on Medco's rating could build if the company's credit metrics are weak for its rating level or its liquidity deteriorates. Debt-funded acquisitions could also result in downward pressure on the company's rating. Quantitative metrics indicative of downward pressure include: -- Adjusted debt/EBITDA rising above 4.0x -- Adjusted RCF/adjusted debt falling below 10% or -- Adjusted EBITDA/Interest expense falling below 3.5x LIST OF AFFECTED RATINGS Outlook Actions: Issuer: Medco Energi Internasional Tbk (P.T.) Outlook, Remains Stable Issuer: Medco Bell Pte. Ltd. Outlook, Remains Stable Issuer: Medco Laurel Tree Pte. Ltd. Outlook, Remains Stable Issuer: Medco Maple Tree Pte. Ltd. Outlook, Assigned Stable Issuer: Medco Oak Tree Pte. Ltd. Outlook, Remains Stable Issuer: Medco Platinum Road Pte. Ltd. Outlook, Remains Stable Affirmations: Issuer: Medco Energi Internasional Tbk (P.T.) Corporate Family Rating, Affirmed B1 Issuer: Medco Bell Pte. Ltd. Senior Unsecured Regular Bond/Debenture (Foreign Currency), Affirmed B1 Issuer: Medco Laurel Tree Pte. Ltd. Senior Unsecured Regular Bond/Debenture (Foreign Currency), Affirmed B1 Issuer: Medco Oak Tree Pte. Ltd. Senior Unsecured Regular Bond/Debenture (Foreign Currency), Affirmed B1 Issuer: Medco Platinum Road Pte. Ltd. Senior Unsecured Regular Bond/Debenture (Foreign Currency), Affirmed B1 Assignments: Issuer: Medco Maple Tree Pte. Ltd. Senior Unsecured Regular Bond/Debenture (Foreign Currency), Assigned B1 The principal methodology used in these ratings was Independent Exploration and Production published in December 2022. Established in 1980 and headquartered in Jakarta, Medco Energi Internasional Tbk (P.T.) is a Southeast Asian integrated energy and natural resource company listed in Indonesia with three key business segments -- oil and gas, power and mining. PAN BROTHERS: Fitch Lowers LongTerm IDR to 'C' ---------------------------------------------- Fitch Ratings has downgraded Indonesia-based garment manufacturer PT Pan Brothers Tbk's Long-Term Issuer Default Rating (IDR) to 'C' from 'CCC-'. Fitch has also downgraded the rating on Pan Brothers' USD171 million senior unsecured notes due December 2025, issued by PB International B.V., to 'C' from 'CCC-' with a Recovery Rating of 'RR4'. At the same time, Fitch Ratings Indonesia has downgraded Pan Brothers' National Long-Term Rating to 'C(idn)' from 'CCC-(idn)'. The downgrade follows Pan Brothers' missed payment of a USD5 million amortisation of its USD124 million syndicated loan, which was due on 27 September 2023. This resulted in Pan Brothers entering into a grace period of 30 days with its bank lenders since the due date. 'C' National Ratings denote a default or default-like process has begun, or the issuer is in standstill, or for a closed funding vehicle, payment capacity is irrevocably impaired. KEY RATING DRIVERS Cure Period: Based on the syndicated loan documentation, Pan Brothers has entered into a standstill period following the non-payment of the USD5 million loan amortisation on its syndicated loan. Pan Brothers has a remedy period of 30 days based on the documentation. Fitch believes the company had cash of about USD30 million as of 30 September 2023. Refinancing in Progress: Pan Brothers is in an advanced stage of discussion with its lenders in refinancing the USD124 million syndicated loan that is due in December 2023. Successful refinancing that extends the maturity would alleviate immediate liquidity constraints, as the next large debt maturity is in 2025. There is sufficient cash to cover the amortisation payment if the refinancing discussions can be successfully concluded. Limited Liquidity and Financial Flexibility: Fitch estimates that Pan Brothers' liquidity and financial flexibility will remain tight without the extension of syndicated loan maturities and additional working-capital facilities. The facilities are necessary due to the high working-capital requirements of its garment business. Liquidity pressure is exacerbated by its sustained negative cash flow from operations and maintenance capex requirements. Declining Revenue: Fitch expects revenue will decline by around 5% in 2023 due to weaker customer demand, with a modest recovery in 2024. Fitch forecasts the EBITDA margin will remain at around 8% due to rising wage pressure. ESG - Management Strategy: Improvement in its cash generation is dependent on Pan Brothers' strategy development and implementation in terms of working-capital and debt-maturity management. Its debt repayment and refinancing capacity relies on its ability to attract new bank lenders beyond its previous and current lenders, or finding alternative sources of funding. DERIVATION SUMMARY The rating reflects the cure period that Pan Brothers has entered into following the non-payment of its syndicated loan amortisation on 27 September 2023. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer: - Revenue to drop by 5% in 2023. Low single-digit growth in 2024 as demand recovers. - Stable EBITDA margin of around 8% in 2023 and 2024 on the company's cost-plus margin model. - Capex of around USD4 million in 2023 in the absence of capacity expansion. Capex will double in 2024 as the company invests in capacity growth. - No dividend payments in 2023-2024. KEY RECOVERY RATING ASSUMPTIONS The recovery analysis assumes that Pan Brothers would be reorganised as a going-concern in bankruptcy rather than liquidated. Fitch assumes a 10% administrative claim. Going-Concern Approach - The going-concern EBITDA estimate reflects Fitch's view of a sustainable, post-reorganisation EBITDA level upon which Fitch bases the enterprise valuation. - Fitch estimates EBITDA at USD62 million to reflect industry conditions and competitive dynamics. - An enterprise value multiple of 5x EBITDA is applied to the going-concern EBITDA to calculate a post-reorganisation enterprise value. The multiple factors in Pan Brothers' customer quality and stable demand. The multiple also applies a discount from the median of around 8x of comparable Asian apparel peers, which are generally larger than Pan Brothers. - The going-concern enterprise value corresponds to a 'RR3' Recovery Rating for the senior unsecured notes after adjusting for administrative claims. Nevertheless, Fitch has rated the senior unsecured bonds at 'C' with a Recovery Rating of 'RR4' because, under its Country-Specific Treatment of Recovery Ratings Criteria, Indonesia is classified under the Group D of countries in terms of creditor friendliness, and instrument ratings of issuers with assets located in this group are subject to a soft cap at the issuer's IDR and a Recovery Rating of 'RR4'. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: - Resolution of the missed loan amortisation payment within the grace period. - Securing the extension of the syndicated loan. Factors that could, individually or collectively, lead to negative rating action/downgrade: - Fitch may downgrade the ratings to 'RD' if Pan Brothers enters into multiple standstill periods, debt restructuring, bankruptcy, or winding-up procedure. LIQUIDITY AND DEBT STRUCTURE Insufficient Liquidity: Pan Brothers had USD29 million of available cash and no committed undrawn facilities at end-June 2023. This is insufficient to cover short-term debt maturities, which is mainly the USD124 million syndicated loan that matures in December 2023. Fitch also estimates that free cash flow will be negative in 2023, driven by a weaker working-capital position, which will be a further drag on liquidity. ISSUER PROFILE Pan Brothers is one of Indonesia's largest garment manufacturers, with Adidas and Uniqlo as its main customers. The company has a production capacity of up to 117 million pieces a year and exports represented around 95% of total sales in 2022. ESG CONSIDERATIONS Pan Brothers has an ESG Relevance Score of '5' for Management Strategy due to the impact of its strategy development and implementation in terms of working-capital management and funding. This has a negative impact on the credit profile, and is highly relevant to the rating, resulting in the weak liquidity position and high refinancing risk that underpin the rating. 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 Recovery Prior ----------- ------ -------- ----- PT Pan Brothers Tbk Natl LT C(idn)Downgrade CCC-(idn) LT IDR C Downgrade CCC- PB International B.V. senior unsecured LT C Downgrade RR4 CCC- ===================== N E W Z E A L A N D ===================== FAIRHAVEN WALK: Court to Hear Wind-Up Petition on Oct. 20 --------------------------------------------------------- A petition to wind up the operations of Fairhaven Walk Limited will be heard before the High Court at Auckland on Oct. 20, 2023, at 10:45 a.m. The Commissioner of Inland Revenue filed the petition against the company on Sept. 5, 2023. The Petitioner's solicitor is: Hosanna Tanielu Inland Revenue, Legal Services 5 Osterley Way Manukau City Auckland 2104 GILLI CAFE: Court to Hear Wind-Up Petition on Oct. 20 ----------------------------------------------------- A petition to wind up the operations of Gilli Cafe Uoa Limited (trading as Gilli Cafe UOA) will be heard before the High Court at Auckland on Oct. 20, 2023, at 10:45 a.m. MYF Limited filed the petition against the company on Sept. 5, 2023. The Petitioner's solicitor is: Brett Leeson Martelli Martelli Yaqub Lawyers Limited 1 St Georges Bay Road Parnell, Auckland KP INTERIOR: Court to Hear Wind-Up Petition on Oct. 26 ------------------------------------------------------ A petition to wind up the operations of KP Interior Limited will be heard before the High Court at Christchurch on Oct. 26, 2023, at 10:00 a.m. The Commissioner of Inland Revenue filed the petition against the company on Aug. 31, 2023. The Petitioner's solicitor is: Nanette Cunningham Inland Revenue, Legal Services PO Box 1782 Christchurch 8140 TWO EDITH'S: Court to Hear Wind-Up Petition on Oct. 26 ------------------------------------------------------ A petition to wind up the operations of Two Edith's Limited will be heard before the High Court at Christchurch on Oct. 26, 2023, at 10:00 a.m. The Commissioner of Inland Revenue filed the petition against the company on Sept. 12, 2023. The Petitioner's solicitor is: Nanette Cunningham Inland Revenue, Legal Services PO Box 1782 Christchurch 8140 YANKEE BOURBON: Court to Hear Wind-Up Petition on Oct. 26 --------------------------------------------------------- A petition to wind up the operations of Yankee Bourbon Company Limited will be heard before the High Court at Christchurch on Oct. 26, 2023, at 10:00 a.m. The Petitioner's solicitor is: Arna McAvoy Inland Revenue, Legal Services PO Box 1782 Christchurch 8140 ================= S I N G A P O R E ================= CEILWELL (S): Court Enters Wind-Up Order ---------------------------------------- The High Court of Singapore entered an order on Oct. 6, 2023, to wind up the operations of Ceilwell (S) Pte. Ltd. Chiang Wee Lam filed the petition against the company. The company's liquidators are: Lau Chin Huat Yeo Boon Keong Technic Inter-Asia 50 Havelock Road #02-767 Singapore 160050 CREATIVE TECHNOLOGY: Files Notice of 3 Straight Years of Losses --------------------------------------------------------------- The Business Times reports that Creative Technology Ltd. has given notice that it has recorded pre-tax losses for three consecutive years. It, however, meets the financial entry criteria to avoid being placed on the Singapore Exchange's (SGX) watch list, as its six-month average daily market capitalisation as at Oct. 11 was SGD110.3 million, BT says. According to SGX listing rules, mainboard-listed companies will be placed on the watch list under the financial entry criteria if they record pre-tax losses for the three most recently completed consecutive financial years, and fail to maintain an average daily market cap of at least SGD40 million over the last six months. BT notes that companies on the watch list must take active steps to satisfy the financial requirements within 36 months from the date they are placed on the list. That means recording a consolidated pre-tax profit for the most recently completed financial year, based on the latest full-year consolidated audited accounts, and having an average daily market cap of SGD40 million or more over the last six months. Otherwise, they will be delisted from the SGX, or have their trading suspended with a view to delisting. Creative Technology narrowed its losses in the second half ended June 30 this year after implementing cost-cutting measures. It posted a US$6.1 million net loss, an improvement from the year-ago loss of US$12.2 million, BT discloses. Creative Technology Ltd, together with its subsidiaries, designs, manufactures, and distributes digital entertainment products worldwide. The company offers digitized sound and video boards, computers, and related multimedia and personal digital entertainment products. It also provides headphones, gaming headsets, speakers, sound cards, sound blasters, work solutions, webcams, adapters and accessories, audio products, and others. In addition, the company offers multimedia solutions for personal computers products. It markets its products and solutions to consumers and system integrators through a distribution network, including traditional marketing channels, original equipment manufacturers, and the Internet. DIRECT SOLUTIONS: Creditors' Proofs of Debt Due on Nov. 14 ---------------------------------------------------------- Creditors of Direct Solutions Management Services Pte. Ltd. are required to file their proofs of debt by Nov. 14, 2023, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 29, 2023. The company's liquidator is: Ong Kok Yeong David c/o Tricor Singapore 80 Robinson Road #02-00 Singapore 068898 EAM GLOBAL: Court to Hear Wind-Up Petition on Oct. 27 ----------------------------------------------------- A petition to wind up the operations of EAM Global Logistics Pte Ltd will be heard before the High Court of Singapore on Oct. 27, 2023, at 10:00 a.m. DBS Bank Ltd filed the petition against the company on Oct. 3, 2023. The Petitioner's solicitors are: Rajah & Tann Singapore LLP 9 Straits View #06-07 Marina One West Tower Singapore 018937 FLASH COFFEE: Exits Singapore to Cut Costs; Owes Over SGD14MM ------------------------------------------------------------- Olivia Poh at Bloomberg News reports that Flash Coffee, a grab-and-go coffee chain backed by Delivery Hero SE, has closed its stores in Singapore to curb costs as it works toward profitability. According to Bloomberg, the Singapore-based company filed a notice with local regulators last week, saying it's unable to continue operating because of its liabilities. The chain, which has about 200 stores globally, will shutter all its 11 locations in the city-state, it said in a statement on Oct. 13. Launched in 2020, Flash Coffee opened at least 20 stores in Singapore and quickly expanded across Indonesia, Thailand, Hong Kong and South Korea. It raised $50 million this May, on the back of a goal to reach profitability in 2024. Bloomberg says the global economic slowdown has been keenly felt in Southeast Asia, where once-high-flying startups have had to quickly reconfigure their businesses and hasten plans to achieve profitability. Flash Coffee's service, as a form of discretionary spending, was particularly vulnerable to the downturn in consumer sentiment and rising rents in the city-state. "Most of our Singapore head office staff have been offered roles in other markets or with our regional team," the company said. The Business Times meanwhile reports that Flash Coffee's Singapore business owes over SGD14 million to more than 150 creditors. This includes employees who were not paid up to two months' salaries, as well as contributions to the Central Provident Fund (CPF). The company, which exploded onto the coffee scene in 2020, has shuttered its remaining 11 Singapore outlets. Its local entity has filed for a voluntary winding-up, The Business Times reported earlier on Oct. 13. Flash Coffee's staff have not been paid their October salaries and part of their salaries for September, a workers' union told BT on Oct. 13. They are also owed CPF contributions. NWC 313: Court to Hear Wind-Up Petition on Oct. 27 -------------------------------------------------- A petition to wind up the operations of NWC 313 Pte Ltd will be heard before the High Court of Singapore on Oct. 27, 2023, at 10:00 a.m. DBS Trustee Limited filed the petition against the company on Oct. 2, 2023. The Petitioner's solicitors are: Tan Peng Chin LLC 50 Raffles Place #27-01, Singapore Land Tower Singapore 048623 YOHOKOMO SINGAPORE: Court to Hear Wind-Up Petition on Oct. 27 ------------------------------------------------------------- A petition to wind up the operations of Yohokomo Singapore (1979) Pte Ltd will be heard before the High Court of Singapore on Oct. 27, 2023, at 10:00 a.m. DBS Bank Ltd filed the petition against the company on Sept. 29, 2023. The Petitioner's solicitors are: Rajah & Tann Singapore LLP 9 Straits View #06-07 Marina One West Tower Singapore 018937 ================= S R I L A N K A ================= CAPITAL ALLIANCE: Fitch's Keeps BBf(lka) Nat'l Fund Rating on RWN ----------------------------------------------------------------- Fitch Ratings has maintained Sri Lanka-based Capital Alliance Investment Grade Fund's National Fund Credit Quality Rating of 'BBf(lka)' and National Fund Market Risk Sensitivity Rating of 'S4(lka)' on Rating Watch Negative (RWN). KEY RATING DRIVERS The fund mainly invests in Sri Lankan government securities, as well as financial institutions and non-bank financial institutions (NBFIs). Fitch is reviewing the ratings of the fund currently and aim to resolve the RWN once Fitch's review of NBFI issuers has been completed, as a material proportion of the fund's portfolio is exposed to Sri Lankan NBFIs. Fitch upgraded Sri Lanka's Long-Term Local-Currency Issuer Default Rating (IDR) to 'CCC-' from 'RD' on 28 September 2023. The upgrade reflects the completion of the local-currency portion of Sri Lanka's domestic debt optimisation plan, launched in July 2023, following the exchange of the Central Bank of Sri Lanka's treasury bills and provisional advance into new treasury bonds and bills on 21 September 2023. For details, see Fitch Upgrades Sri Lanka's Long-Term Local-Currency IDR to 'CCC-', published 28 September 2023. Fitch subsequently removed the RWN on rated Sri Lankan banks, reflecting its view that near-term downside risks have been reduced substantially. See Fitch Affirms Ratings on 15 Sri Lankan Banks; Removes Watch Negative; CBL on Negative Outlook, published 5 October 2023. NATIONAL CREDIT QUALITY The current 'BBf(lka)' National Fund Credit Quality Rating considers both the fund's actual and prospective credit quality. The fund's weighted-average rating factor (WARF), Fitch's proprietary measure of fund credit risk, was 12.8 - within the 'BBf(lka)' rating range of 6.1-15.8 - in mid-August 2023. A fund's WARF is a function of the credit ratings of the securities held in a fund's portfolio and their remaining term to maturity, weighted by market value. Fitch bases the WARF on Fitch ratings where available. Fitch assumes that securities that are not publicly rated by any globally recognised rating agencies carry 'CCC(lka)' ratings for the purpose of the WARF calculation. An estimated minimum rating provided by the relevant analytical team at Fitch would be used if it is available. MODERATE-TO-HIGH SENSITIVITY TO MARKET RISKS The National Fund Market Risk Sensitivity rating reflects Capital Alliance Investment Grade Fund's moderate-to-high sensitivity to interest-rate and spread risk. The fund's weighted-average maturity and weighted-average life was 19 months and 25 months, respectively, in mid-August 2023. FUND PROFILE The fund was launched in 2013 and is domiciled in Sri Lanka. It is authorised and regulated by the Sri Lankan Securities and Exchanges Commission. The fund's assets are segregated with the trustee, Deutsche Bank AG, Colombo Branch, a subsidiary of Deutsche Bank AG (A-/Stable/F2). The fund size was around LKR26 billion in mid-August 2023. INVESTMENT MANAGER Fitch regards Capital Alliance Investments Limited as a suitably qualified, competent and capable investment manager for the fund. The manager was founded in 2011 and is majority owned by Capital Alliance Limited, with a minority holding by Sri Lanka Insurance Corporation Limited (National Insurer Financial Strength: A(lka)/RWN). The manager was the country's second-largest investment manager, with a market share of about 21%, and total assets under management of LKR45 billion in unit trust funds as of end-August 2023. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: The National Fund Credit Quality Rating could be upgraded if the fund adjusted its investment guidelines to focus only on higher quality securities. The National Fund Market Risk Sensitivity Rating could be upgraded if the fund's investment strategy facilitates a shorter duration. Factors that could, individually or collectively, lead to negative rating action/downgrade: The National Fund Credit Quality Rating could be downgraded if the portfolio suffers negative rating migration or if the fund's strategy changes to invest in lower-quality securities. The rating is also sensitive to exposures that are not publicly rated by a globally recognised rating agency and where Fitch may have more conservative credit views than other rating agencies. The National Fund Market Risk Sensitivity Rating could be downgraded if the investment guidelines allow the fund to increase duration risk. Entity/Debt Rating Prior ----------- ------ ----- Capital Alliance Investment Grade Fund Natl Fund Cr Qual BBf(lka) Rating Watch Maintained BBf(lka) Natl Sensitivity S4(lka) Rating Watch Maintained S4(lka) SRI LANKA: Bondholders Sent US$12BB Debt Rework Proposal to Gov't. ------------------------------------------------------------------ Reuters reports that Sri Lanka's private creditors have sent a proposal on how to restructure US$12 billion of overseas debt, including a new type of bond designed to ease repayments in case of future economic pressure, said two sources with direct knowledge of the matter. The country of 22 million people tipped into its first foreign debt default in May 2022, after a severe shortage of dollars triggered its worst financial crisis since independence from Britain in 1948. According to Reuters, the proposal sent on Oct. 2 provides a write-down, or haircut, on both capital and interest, added the sources who declined to be named because the talks are private. It foresees issuance of regular sovereign bonds and also of so-called Macro Linked Bonds (MLBs), which will automatically lower coupon payments starting in 2027 if Sri Lanka fails to meet some of the economic targets linked to its International Monetary Fund (IMF) programme, Reuters says. Reuters relats that the overall proposal includes an option for creditors that combines MLB notes with a regular bond and a second option of regular bonds with a Value Recovery Instrument (VRI), one of the sources said. The MLBs were included to ensure the new instruments would be index eligible, the sources said. Bonds included in an index generally have more liquidity. According to Reuters, the proposal would be a crucial step for Sri Lanka which, under the terms of a $2.9 billion IMF bailout secured in March, has to provide assurances of debt restructuring from bondholders and key bilateral lenders including China, Japan and India. It would be the first time such step-down bonds are being used in a debt restructuring, the sources added, Reuters relays. The trigger of the step-down payments on the MLBs would be linked to indicators such as Sri Lanka's gross financing needs (GFN) to gross domestic product (GDP) ratio and debt to GDP ratio, one of the sources said. If the GFN/GDP ratio rises "above 4.5% in 2027, coupons will adjust downwards", the source, as cited by Reuters, added. Reuters says the restructuring proposal is based on parameters from the debt sustainability analysis that the IMF produced when it agreed the programme for the battered economy. A copy of the proposal was also sent to the IMF and the Paris club secretariat, one of the sources said. Bondholders and the government remain in discussions through financial and legal advisers, so they are still not restricted to trade the country's securities, adds Reuters. About Sri Lanka Sri Lanka, formerly known as Ceylon and officially the Democratic Socialist Republic of Sri Lanka, is an island country in South Asia. It lies in the Indian Ocean, southwest of the Bay of Bengal, and southeast of the Arabian Sea; it is separated from the Indian subcontinent by the Gulf of Mannar and the Palk Strait. Sri Lanka shares a maritime border with India and the Maldives. Sri Jayawardenepura Kotte is its legislative capital, and Colombo is its largest city and financial centre. The island nation defaulted on its foreign debt for the first time in its history in April last year as the worst financial crisis since independence from Britain in 1948 crushed its economy. As recently reported in the Troubled Company Reporter-Asia Pacific, Fitch Ratings has upgraded Sri Lanka's Long-Term Local-Currency Issuer Default Rating (IDR) to 'CCC-' from 'RD' (Restricted Default). Fitch typically does not assign Outlooks to sovereigns with a rating of 'CCC+' or below. The Long-Term Foreign-Currency IDR has been affirmed at 'RD' and the Country Ceiling at 'B-'. The Short-Term Local-Currency IDR has been downgraded to 'RD' from 'C' following the exchange of treasury bills held by the central bank and subsequently upgraded to 'C' in line with the Sovereign Rating Criteria, as Fitch believes the local-currency debt exchange has now been completed. UB FINANCE: Fitch's 'BB(lka)' Nat'l. LT Rating Off Neg. Watch ------------------------------------------------------------- Fitch Ratings has affirmed the support-driven National Long-Term Ratings of four Sri Lankan bank subsidiary finance and leasing companies (FLCs). The Outlooks are Stable. The four FLCs are: - CBC Finance LTD (CBCF) at 'BBB+(lka)'; - HNB Finance PLC (HNBF) at 'BBB+(lka)'; - Siyapatha Finance PLC at 'BBB+(lka)'; and - UB Finance PLC (UBF) at 'BB(lka)'. At the same time, Fitch has removed the Rating Watch Negative (RWN) on the four FLCs' National Long-Term Ratings as well as HNBF's and Siyapatha's subordinated debt ratings. KEY RATING DRIVERS Parents Drive RWN Resolution: The rating action on the four FLCs stems from similar action on their respective parent banks' ratings. On 5 October 2023, Fitch affirmed the National Long-Term Ratings of Commercial Bank of Ceylon PLC, Hatton National Bank PLC and Sampath Bank PLC at 'A(lka)' and Union Bank of Colombo PLC at 'BBB-(lka)', with Stable Outlooks, and removed the banks from RWN. For details, please see Fitch Affirms Ratings on 15 Sri Lankan Banks; Removes Watch Negative; CBL on Negative Outlook, dated 5 October 2023. Shareholder Support Underpins Ratings: The National Long-Term Ratings of CBCF, HNBF, Siyapatha and UBF are driven by its view that their respective parent banks would provide extraordinary support to their finance subsidiaries, if required. The parents' ability to extend support to these FLCs is reflected in their credit profile, which is underpinned by their standalone strength. The key rating drivers are those outlined in its previous published RACs for these four entities as follows: - CBCF: Fitch Maintains CBC Finance's National Long-Term Rating of 'BBB+(lka)' on Watch Negative, dated 10 April 2023; - HNBF: Fitch Maintains HNB Finance's National Rating of 'BBB+(lka)' on Watch Negative, dated 10 April 2023; - Siyapatha: Fitch Maintains Siyapatha Finance's National Rating of 'BBB+(lka)' on Watch Negative, dated 10 April 2023; and - UBF: Fitch Assigns UB Finance First-Time 'BB(lka)' Rating; on RWN, dated 18 May 2023. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The four FLCs' ratings are sensitive to changes in their respective parents' credit profile, as reflected in the parents' National Long-Term Ratings as well as Fitch's opinion around the parents' ability and propensity to extend timely extraordinary support. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade An upgrade would most likely result from an upgrade of the parents' National Long-Term Ratings, which would reflect the parents' increased ability to support the subsidiary. An upgrade could also stem from a greater propensity to support these FLCs through a significant increase in their strategic importance to the parent banks, although Fitch regards this as unlikely in the near term. DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS The removal of the RWN on HNBF's and Siyapatha's outstanding subordinated debt corresponds to the action taken on the companies' National Ratings. The outstanding subordinated debentures are rated two notches below their respective National Long-Term Ratings. Fitch has applied its Bank Rating Criteria in rating these instruments, as Fitch views the prudential capital framework for finance companies to be closer to that for banks in Sri Lanka. Its baseline notching of two notches for loss severity reflects its expectation of poor recovery in the event of default. Fitch has not applied additional notching to the notes for non-performance risk, as they have no going-concern loss-absorption features, in line with Fitch criteria. DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES Debt ratings will move in tandem with the National-Long Term Ratings PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS CBCF's rating is driven by Commercial Bank of Ceylon's National Rating, HNBF's rating is driven by Hatton National Bank's National Rating, Siyapatha's rating is driven by Sampath Bank's National Rating and UBF's rating is driven by Union Bank of Colombo's National Rating. Entity/Debt Rating Prior ----------- ------ ----- UB Finance PLC Natl LT BB(lka) Affirmed BB(lka) Siyapatha Finance PLC Natl LT BBB+(lka) Affirmed BBB+(lka) Subordinated Natl LT BBB-(lka) Affirmed BBB-(lka) HNB Finance PLC Natl LT BBB+(lka) Affirmed BBB+(lka) subordinated Natl LT BBB-(lka) Affirmed BBB-(lka) CBC Finance LTD Natl LT BBB+(lka) Affirmed BBB+(lka) ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman, Editors. Copyright 2023. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. *** End of Transmission ***