/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/231113.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, November 13, 2023, Vol. 26, No. 227 Headlines A U S T R A L I A 3D PRINTERS: Second Creditors' Meeting Set for Nov. 15 ARMOUR ENERGY: Placed Into Receivership BLUESTONE MORTGAGE: Fitch Affirms 'Bsf' Rating on Class F Bonds EXEL INFRAGROUP: Liquidators Pursue Creditors GAMBA DI LEGNO: First Creditors' Meeting Set for Nov. 16 HYP ENTERTAINMENT: Second Creditors' Meeting Set for Nov. 15 JKN KENT: Second Creditors' Meeting Set for Nov. 15 PEPPER ASSET NO. 2: Fitch Affirms 'Bsf' Rating on Class 5 Notes RUBY MANAGEMENT: Second Creditors' Meeting Set for Nov. 16 ZIP MASTER 2023-1: S&P Affirms B (sf) Rating on Class F Notes C H I N A COUNTRY GARDEN: Aims Offshore Debt Restructuring by Year End SHANGRAO CITY CONSTRUCTION: Fitch Affirms Then Withdraws 'BB+' IDRs I N D I A A. K. BUILDERS: CARE Keeps C Debt Rating in Not Cooperating ADELSON PHARMA: Liquidation Process Case Summary BF-NTPC : Voluntary Liquidation Process Case Summary BHALKESHWAR SUGARS: CRISIL Keeps D Ratings in Not Cooperating BLACK ENERGY: CRISIL Keeps D Debt Ratings in Not Cooperating C. P. INDUSTRIES: CRISIL Keeps C Debt Rating in Not Cooperating CAREER COACHING: CRISIL Keeps D Debt Ratings in Not Cooperating CHAPHEKAR AND COMPANY: CRISIL Keeps D Ratings in Not Cooperating CHITTARANJAN MULTIPURPOSE: CRISIL Keeps D Ratings in Not Coop. DEEPAK DIAMONDS: CRISIL Keeps D Debt Ratings in Not Cooperating EURO MULTIVISION: Liquidation Process Case Summary FIDERE FACILITIES: Insolvency Resolution Process Case Summary FOOD AND BIOTECH: Insolvency Resolution Process Case Summary FUTURE RETAIL: RP Files for Liquidation in NCLT GANGA DAIRY: CARE Lowers Rating on INR38.99cr LT Loan to D GAUTAMI CHEMICALS: CRISIL Keeps D Debt Rating in Not Cooperating GO FIRST: Lenders Seek to Recover Up to 30% GO FIRST: Lenders to Challenge Move to Let Lessors Reclaim Planes HI-POINT INVESTMENT: Liquidation Process Case Summary HORIZON LEISURE: CRISIL Keeps D Debt Rating in Not Cooperating KASHIPUR SITARGANJ: Ind-Ra Keeps D Loan Rating in NonCooperating KAYTEE CORPORATION: Ind-Ra Keeps BB Loan Rating in Non-Cooperating KDM CLOTHING: Ind-Ra Keeps B+ Bank Loan Rating in Non-Cooperating KOHENOOR INDUSTRIES: CRISIL Keeps D Ratings in Not Cooperating KP SOLVEX: Ind-Ra Keeps B Bank Loan Rating in Non-Cooperating KPC FLEXI: CARE Keeps C Debt Rating in Not Cooperating Category KTL PVT: Ind-Ra Keeps BB Bank Loan Rating in Non-Cooperating LAXMI TRADERS: CARE Keeps C Debt Rating in Not Cooperating LN FIELDS: Ind-Ra Keeps B Bank Loan Rating in Non-Cooperating MAHATHI SOFTWARE: Ind-Ra Keeps B Loan Rating in Non-Cooperating MANGLAM TIMBERS: Ind-Ra Keeps B Loan Rating in Non-Cooperating MERCY CORPS: Voluntary Liquidation Process Case Summary MKD INFRASTRUCTURE: CARE Keeps D Debt Rating in Not Cooperating MOENUS TEXTILE: Ind-Ra Keeps D Bank Loan Rating in Non-Cooperating NAGAUR WATER: Liquidation Process Case Summary NEO PACK: Ind-Ra Keeps BB- Bank Loan Rating in Non-Cooperating NIKKI STEELS: Ind-Ra Keeps B+ Bank Loan Rating in Non-Cooperating OLIVE SILK: Ind-Ra Keeps BB Bank Loan Rating in Non-Cooperating OZONE INFRA: Ind-Ra Keeps D Bank Loan Rating in Non-Cooperating PACIFIC ACADEMY: CARE Keeps D Debt Ratings in Not Cooperating PADMEY IMPEX: Ind-Ra Keeps D Bank Loan Rating in Non-Cooperating RAMESH GOENKA: Voluntary Liquidation Process Case Summary RAVINDRANATH: Ind-Ra Keeps BB Bank Loan Rating in Non-Cooperating RIYA IMPEX: Ind-Ra Hikes Loan Rating to B+, Outlook Stable RPL INDUSTRIES: Ind-Ra Keeps BB- Loan Rating in Non-Cooperating RVR TECHNOLOGIES: Ind-Ra Keeps B Loan Rating in Non-Cooperating S. S. KAMATH: CARE Keeps C Debt Rating in Not Cooperating SAI MANASA: Ind-Ra Keeps BB- Bank Loan Rating in Non-Cooperating SALTEE BUILDCON: Ind-Ra Keeps BB Loan Rating in Non-Cooperating SAMRAT WIRES: Ind-Ra Keeps B Bank Loan Rating in Non-Cooperating SCHOLARS ACADEMY: CRISIL Keeps D Debt Ratings in Not Cooperating SHINE STAR: Ind-Ra Keeps BB- Bank Loan Rating in Non-Cooperating SHREEVARI ENERGY: Ind-Ra Cuts Bank Loan Rating to BB- SHRUTI TRAVELS: CRISIL Keeps D Debt Rating in Not Cooperating SREEVALSAM EDUCATIONAL: CRISIL Keeps D Ratings in Not Cooperating TERRA REALCON: CRISIL Keeps D Debt Rating in Not Cooperating VEER OVERSEAS: Ind-Ra Affirms BB+ Bank Loan Rating VRUKSHA MICROFIN: Ind-Ra Hikes Loan Rating to BB, Outlook Stable ZEE ENTERTAINMENT: Leadership Dispute Stalls Sony Merger Talks N E W Z E A L A N D 9TH ENTERTAINMENT: Creditors' Proofs of Debt Due on Jan. 12 AGILITY CONSTRUCTION: Creditors' Proofs of Debt Due on Dec. 6 BEERTIQUE NZ: Grant Bruce Reynolds Appointed as Liquidator BLUESTONE NZ 2021-1: S&P Affirms B (sf) Rating on Class F Notes COASTLINE INTERIOR: Court to Hear Wind-Up Petition on Dec. 1 QUITE USEFUL: Court to Hear Wind-Up Petition on Dec. 14 S I N G A P O R E 818 DURIANS: Court Enters Wind-Up Order DIANA GROUP: Creditors' Proofs of Debt Due on Dec. 8 ENG CHOON: Court to Hear Wind-Up Petition on Nov. 24 HODLNAUT TRADING: Singapore High Court Enters Wind Up Order VANDA LOGISTICS: Creditors' Proofs of Debt Due on Dec. 9 VIVA CAPITAL: Court Enters Wind-Up Order S R I L A N K A HELA APPAREL: Fitch Cuts Nat'l. LT IDR to 'BB+(lka),' Outlook Neg. T A I W A N CONCORD SECURITIES: Fitch Affirms BB+ LongTerm IDR, Outlook Stable ORIENTAL SECURITIES: Fitch Alters Outlook on 'BB+' LT IDR to Neg. V I E T N A M VIETNAM BANK FOR AGRICULTURE: Fitch Rates LongTerm FC IDR at 'BB' - - - - - ================= A U S T R A L I A ================= 3D PRINTERS: Second Creditors' Meeting Set for Nov. 15 ------------------------------------------------------ A second meeting of creditors in the proceedings of 3D Printers Online Pty Ltd has been set for Nov. 15, 2023 at 3:00 p.m. via Zoom virtual meeting facilities. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Nov. 14, 2023 at 4:00 p.m. Domenico Alessandro Calabretta and Mitchell Ball of Mackay Goodwin were appointed as administrators of the company on Oct. 11, 2023. ARMOUR ENERGY: Placed Into Receivership --------------------------------------- News.com.au reports that an energy company with an annual revenue of AUD15 million has gone into receivership following an extensive period of losses. Australian exploration and production company, Armour Energy, has gone up for immediate sale but will remain in operation under the watch of KordaMentha Restructuring until it's sold, news.com.au relates. KordaMentha's Richard Tucker and Robert Hutson were appointed on Nov. 10, news.com.au discloses. "The appointment by secured creditors follows unsuccessful attempts by the company to repay the outstanding senior secured notes," a media statement from KordaMentha read. Mr. Tucker and Mr. Hutson would be in control of operations while undertaking "an immediate sales process" the receivers said. "Armour Energy has been achieving consistent quarterly production results and sales revenue of AUD15.0 million in FY23. However, there is considerable upside for both production volumes and sales revenue," the statement, as cited by news.com.au, read. "With the Kincora Gas Project in production and permits with significant reserves across Queensland, South Australia and Victoria, we expect there to be a high level of interest for the Armour Energy assets," Mr. Tucker said. "While undertaking the sale process, we ask all suppliers and stakeholders to work with our team to ensure value is preserved. This is for the benefit of all creditors." Armour Energy's subsidiaries would also go into receivership including Coera Pty Ltd, McArthur Oil and Gas Limited, Holloman Petroleum Pty Ltd, Cordillo Energy Pty Ltd and McArthur NT Pty Ltd, according to news.com.au. Armour Energy posted a loss of AUD11 million in the most recent financial year and a latest trailing-twelve-month loss of AUD13 million. News.com.au notes that the staggering figures worsened the company's chances of breaking even. Industry analysts in May projected the company could breakeven come 2024 and even post a profit of AUD1.1 million. For that to have had a chance however, the company would have needed to have an annual growth rate of 100 per cent – a pipe dream that would clearly never eventuate, news.com.au relates. About Armour Energy Armour Energy Limited, together with its subsidiaries, focuses on the exploration, development, and production of oil and gas, and associated liquid resources in Australia. It operates in two segments, Exploration, Evaluation, and Appraisal Activities; and Production and Development of Petroleum Products. The company also produces and sells petroleum products, including oil, gas, LPG, and condensate in the Surat Basin. Richard Tucker and Robert Hutson of KordaMentha were appointed as Receivers and Managers of the Company and certain of its subsidiaries on Nov. 10, 2023. Prior to the appointment of the Receivers and Managers, Jonathan Henry, Damien Pasfield and Mark Holland of McGrathNicol were appointed Voluntary Administrators to the same entities pursuant to Section 436C of the Corporations Act 2001. The Voluntary Administrators were also subsequently appointed to Armour Energy (Qld) Pty Ltd. BLUESTONE MORTGAGE: Fitch Affirms 'Bsf' Rating on Class F Bonds --------------------------------------------------------------- Fitch Ratings has affirmed six classes of Bluestone Mortgage Warehouse Trust's mortgage-backed pass-through floating-rate bonds. The transaction is backed by a pool of first-ranking Australian conforming and non-conforming residential full- and low-documentation mortgage loans. All mortgages were originated by Bluestone Group Pty Ltd and the notes were issued by Permanent Custodians Limited in its capacity as trustee of Bluestone Mortgages Warehouse Trust. Entity/Debt Rating Prior ----------- ------ ----- Bluestone Mortgages Warehouse Trust A LT AAAsf Affirmed AAAsf B LT AAsf Affirmed AAsf C LT Asf Affirmed Asf D LT BBBsf Affirmed BBBsf E LT BBsf Affirmed BBsf F LT Bsf Affirmed Bsf KEY RATING DRIVERS Resilient Asset Performance: The 30+ and 90+ day arrears were 7.7% and 4.0%, respectively, at end-September 2023, driven largely by the addition of portfolios from transactions where the clean-up call option had been exercised. This was above Fitch's 2Q23 Dinkum Non-Conforming RMBS Index of 3.0% and 1.3%. There has been one additional realised loss in the past 12 months. Its expectations of the pool's future composition are based on stressed proxy pools and historical data, as the transaction has a rolling revolving period. The proxy pools are shaped by portfolio characteristics that impact foreclosure frequency within the APAC Residential Mortgage Rating Criteria. Fitch uses four proxy pools based on various conforming parameters. Arrears for all four pools were stressed to the portfolio parameter with the majority being stressed as 90+ day arrears. The 20% conforming proxy pool produced the highest portfolio loss. The 'AAAsf' weighted-average foreclosure frequency (WAFF) of 46.0% was driven by a Fitch-stressed weighted-average (WA) unindexed loan/value ratio (LVR) of 70.8%, loans with an LVR greater than 80% making up 29.8% of the portfolio, Fitch-stressed non-conforming loans of 82.3%, investment loans of 39% and interest-only loans of 16.2%. The 'AAAsf' WA recovery rate (WARR) of 51.6% was driven by the stressed portfolio's WA indexed scheduled LVR of 72.5%. Credit Enhancement Supports Ratings: Each tranche of rated notes benefits from credit enhancement (CE) provided by the respective subordinated notes and will revert to sequential paydown, building up CE, if performance significantly deteriorates and triggers an amortisation event or if the revolving period is not extended. The rated notes pass Fitch's cash flow model stresses at their respective ratings. Fitch excludes the payment of additional interest on the class A to F notes in its rating assessment. The additional interest is subordinated below losses at all times. Non-payment of additional interest will not lead to an event of default, as outlined in the transaction documentation. Low Operational and Servicing Risk: Bluestone is a non-bank lender with extensive experience in originating, servicing and managing its mortgage portfolio. Fitch undertook an operational review and found that the operations of the originator and servicer were comparable with market standards and that there were no material changes that may affect Bluestone's ongoing ability to undertake administration and collection activities. Bluestone's collection timelines, policies, procedures and origination practices are largely in line with those of other lenders in Australia after considering the mix of conforming and non-conforming borrowers, as evident from the transaction's historical performance. Tight Labour Market to Support Outlook: Portfolio performance is supported by Australia's continued economic growth and tight labour market, despite interest rate hikes from May 2022 to November 2023. GDP growth in the year to June 2023 was 2.1% and unemployment was 3.6% in September 2023. Fitch expects GDP to rise to 1.7% for the full year, before reducing to 1.5% in 2024, with unemployment at 3.8% increasing to 4.2% next year. This reflects the expected impact on Australia's economy from the China property downturn in 2024 and lagged effects of tighter monetary policy on consumption. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The transaction's performance may be affected by changes in market conditions and the economic environment. Weakening asset performance is strongly correlated with increasing levels of delinquencies and defaults that could reduce CE available to the notes. Downgrade Sensitivities Unanticipated increases in the frequency of defaults and loss severity on defaulted receivables could produce loss levels higher than Fitch's base case and are likely to result in a decline in CE and remaining loss-coverage levels available to the notes. Decreased CE may make certain note ratings susceptible to negative rating action, depending on the extent of the coverage decline. Hence, Fitch conducts sensitivity analysis by stressing a transaction's initial base-case assumptions. The rating sensitivity section provides insight into the model-implied sensitivities the transaction faces when assumptions - WAFF or WARR - are modified, while holding others equal. The modelling process uses the modification of default and loss assumptions to reflect asset performance in up and down environments. The results should only be considered as one potential outcome, as the transaction is exposed to multiple dynamic risk factors. It should not be used as an indicator of possible performance. Notes: A / B / C / D / E / F Ratings: AAA / AA / A / BBB / BB / B Impact on note ratings of increased defaults: Increase defaults by 15%: AA+ / A+ / A- / BBB / BB / B Increase defaults by 30%: A+ / A / BBB+ / BBB- / BB- / B Impact on note ratings of decreased recoveries: Recoveries decrease 15%: AA+ / AA- / A / BBB / BB / B Recoveries decrease 30%: AA+ / AA- / A / BBB / BB / B Impact on note ratings of multiple factors: Defaults increase 15%/recoveries decrease 15%: AA+ / A+ / A- / BBB / BB / B Defaults increase 30%/recoveries decrease 30%: A+ / A / BBB+ / BBB- / BB- / B Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade The notes are constrained by the revolving pool concentration test and cannot be upgraded. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. Prior to the transaction closing, Fitch did not review the results of a third-party assessment conducted on the asset portfolio information. As part of its ongoing monitoring, Fitch reviewed a small targeted sample of the originator's origination files and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the agency about the asset portfolio. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis, according to its applicable rating methodologies, indicates that it is adequately reliable. ESG CONSIDERATIONS The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. EXEL INFRAGROUP: Liquidators Pursue Creditors --------------------------------------------- News.com.au reports that a victim of a collapsed building firm is furious because the liquidators are chasing his business for money even though he's already thousands out of pocket. News.com.au relates that Callum Phillips' traffic business, Synergy Traffic Management, is currently facing a AUD63,000 loss due to the liquidation of a contractor on a major railway project in regional Victorian. But his small Shepparton business, with just 18 employees, was hit with a fresh blow last month when the liquidators demanded he pay them AUD31,000. In August, news.com.au reported that Exel Infragroup Pty Ltd had plunged into liquidation owing AUD4.272 million. The Victorian-based business was a civil excavation firm with a focus on project management, and was also the lead contractor for parts of the state's Big Build rail project, in charge of the North East Line Upgrade at Lilliput and Balmattum in rural Victoria, according to news.com.au. News.com.au relates that the majority of its creditors were casual staff owed small amounts of money, and the company's former director Djin Siauw said that a large portion of its debt was owed to shareholders such as himself who tried to prop up the company. Mr. Phillips is one of the half a dozen unsecured creditors owed money but due to a payment made to him in the six months before the company went bust, the liquidators are claiming it was unfair and should be distributed equally among creditors. "We weren't expecting that letter at all," Mr Phillips said to news.com.au. "We were hoping for some good news rather than more heart ache." Petr Vrsecky and Paul Allan of insolvency firm PKF Melbourne are the appointed liquidators, and in conversation with news.com.au, Mr. Vrsecky said "Anyone who received money in the last six months (has to) tip it back in and share it". According to a statutory liquidator's report lodged with the corporate regulator, seven creditors received payments in the six months before Exel Infragroup went under. The total of these payments added up to AUD253,254, news.com.au discloses. All seven companies, which includes Synergy Traffic Management, have been sent letters of demand. During this period of time, Exel Infragroup also paid the Australian Taxation Office AUD111,000, news.com.au says. The liquidators have indicated this might also be an unfair payment, and they have sent through a freedom of information request to find out more. On October 17, Mr. Phillips received the alarming letter which stated that the AUD31,000 payment he received from Exel Infragroup was considered "voidable" because the company was insolvent at the time. Mr. Phillips has engaged lawyers to fight the demand, news.com.au relays. "They said we won't see a cent of what we return," he lamented. Indeed, in the same statutory report, it's stated that unsecured creditors like Mr. Phillips are unlikely to receive any return for their losses. "At this stage, a dividend to any class of creditor is unlikely," the report reads. This makes it even more untenable for the small business owner to comply with the demand. "It doesn't give me any pleasure to do it, being well aware some of these creditors are already out of pocket," Mr. Vrsecky, one of the joint liquidators, explained, but added "it's part of my job," news.com.au relays. According to the report, Mr. Vrsecky acknowledged that if these trade creditors complied with his demands, the money would go into costs first - which would involve paying liquidator fees - and then whatever was left would go to other creditors. "That would be distributed across the whole body of creditors," news.com.au quotes Mr. Vrsecky as saying. "The costs would come out first and then the balance gets distributed. Any employee claim gets priority. The rest would be distributed across the remaining unsecured creditors." Paul A. Allen and Petr Vrsecky of PKF were appointed as liquidators of the company on July 14, 2023. GAMBA DI LEGNO: First Creditors' Meeting Set for Nov. 16 -------------------------------------------------------- A first meeting of the creditors in the proceedings of Gamba Di Legno Pty Ltd will be held on Nov. 16, 2023, at 11:00 a.m. at the offices of Unit 1, 78 Logan Road Woolloongabba and via telephone facilities. William Roland Robson of Robson Cotter Insolvency Group was appointed as administrator of the company on Nov. 6, 2023. HYP ENTERTAINMENT: Second Creditors' Meeting Set for Nov. 15 ------------------------------------------------------------ A second meeting of creditors in the proceedings of HYP Entertainment Pty Ltd has been set for Nov. 15, 2023 at 3:30 p.m. at the offices of SV Partners, Level 17, 200 Queen Street at Melbourne and via Microsoft Teams. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Nov. 14, 2023 at 5:00 p.m. Timothy James Brace and Peter Gountzos of SV Partners were appointed as administrators of the company on Oct. 11, 2023. JKN KENT: Second Creditors' Meeting Set for Nov. 15 --------------------------------------------------- A second meeting of creditors in the proceedings of JKN Kent Pty Ltd has been set for Nov. 15, 2023 at 11:00 a.m. at the offices of Ferrier Silvia at Suite 902, Level 9, 70 Pitt Street in Sydney and virtually via Zoom video conference facility. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Nov. 14, 2023 at 5:00 p.m. Geoffrey Peter Granger and Brian Raymond Silvia of Ferrier Silvia were appointed as administrators of the company on July 26, 2023. PEPPER ASSET NO. 2: Fitch Affirms 'Bsf' Rating on Class 5 Notes --------------------------------------------------------------- Fitch Ratings has affirmed the ratings on four note classes from Pepper Asset Finance Revolver No. 2 Trust. The Outlook is Stable. The revolving transaction is backed by first-ranking Australian automotive and equipment lease and loan receivables originated by Pepper Asset Finance Pty Limited, a subsidiary of Pepper Money Limited. The notes were issued by BNY Trust Company of Australia Limited as trustee for Pepper Asset Finance Revolver No. 2 Trust. Entity/Debt Rating Prior ----------- ------ ----- Pepper Asset Finance Revolver No. 2 Trust 2 LT Asf Affirmed Asf 3 LT BBBsf Affirmed BBBsf 4 AU3FN0073227 LT BBsf Affirmed BBsf 5 AU3FN0073235 LT Bsf Affirmed Bsf KEY RATING DRIVERS Stable Historical Performance and Collateral Characteristics: Performance of the underlying assets has been in line with Fitch's base-case expectations. The transaction's 30+ and 60+ day arrears as of end-September 2023 were 1.3% and 0.7%, respectively. These are in line with Fitch's 2Q23 Dinkum ABS Index 30+ and 60+ arrears of 1.17% and 0.57%, respectively. The transaction is still within its revolving period, which ends December 2024. The receivables in the transaction pool are subject to eligibility criteria, and excess concentration parameters that limit the pool's concentration in loan products, asset types, obligors, geographic exposure, and various asset characteristics. Portfolio-specific default and recovery base-case expectations were based primarily on originator-specific data, but also consider the economic outlook, market and peer comparison data and the revolving period for the transaction. Tight Labour Market Supports Outlook: Performance is supported by Australia's continued economic growth and tight labour market, despite interest rates increasing from May 2022 to June 2023. GDP growth in the year to June 2023 was 2.1% and unemployment was 3.6% in September 2023. Fitch expects GDP growth to moderate to 1.7% for the full year before slowing to 1.5% in 2024, with unemployment at 3.8% increasing to 4.2% next year. This reflects its expectation of the impact on Australia's economy from China's property downturn in 2024 and lagged effects of tighter monetary policy on consumption. Credit Enhancement Supports Rating: Credit enhancement is sufficient to support the notes' current rating levels. Cash flow analysis was not performed for the transaction, as none of the variables affecting transaction performance have changed beyond that expected since the last rating action and documented credit enhancement levels are unchanged. Low Operational and Servicing Risk: All receivables are originated by Pepper Asset Finance, which demonstrated adequate capability as originator, underwriter and servicer. Pepper is not rated by Fitch. Servicer disruption risk is mitigated by back-up servicing arrangements. The nominated backup servicer is BNY Trust Company of Australia Limited. Fitch undertook an operational and file review and found that the operations of the originator and servicer were comparable with those of other auto and equipment lenders. The key rating drivers listed in the applicable sector criteria, but not mentioned above, are not material to this rating action. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Transaction performance may be affected by changes in market conditions and the economic environment. Weakening asset performance is strongly correlated with increasing levels of delinquencies and defaults that could reduce the credit enhancement available to the notes. Downgrade Sensitivities Unanticipated increases in the frequency of defaults and loss severity on defaulted receivables could produce loss levels higher than Fitch's base case and are likely to result in a decline in credit enhancement and remaining loss-coverage levels available to the notes. Decreased credit enhancement may make certain note ratings susceptible to negative rating action, depending on the extent of the coverage decline. For Fitch's previous rating sensitivities, please see Fitch Assigns Final Ratings to Pepper Asset Finance Revolver No. 2 Trust, published 8 December 2022. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Macroeconomic conditions, collateral performance and credit losses that are better than Fitch's baseline scenario or sufficient build-up of credit enhancement that would fully compensate for the credit losses and cash flow stresses commensurate with higher rating scenarios, all else being equal. Upgrade Sensitivities For Fitch's previous rating sensitivities, please see Fitch Assigns Final Ratings to Pepper Asset Finance Revolver No. 2 Trust. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information as part of its ongoing monitoring. Prior to the transaction closing, Fitch sought to receive a third-party assessment conducted on the asset portfolio information, but none was made available to Fitch for this transaction. As part of its ongoing monitoring, Fitch reviewed a small targeted sample of the originator's origination files and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the agency about the asset portfolio. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING The issuer has informed Fitch that not all relevant underlying information used in the analysis of the rated notes is public. ESG CONSIDERATIONS The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. RUBY MANAGEMENT: Second Creditors' Meeting Set for Nov. 16 ---------------------------------------------------------- A second meeting of creditors in the proceedings of Ruby Management Services Pty Ltd has been set for Nov. 16, 2023 at 10:00 a.m. at the offices of Morton + Lee Insolvency at Level 10, 388 Queen Street in Brisbane and via virtual meeting technology. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Nov. 15, 2023 at 4:00 p.m. Gavin Charles Morton of Morton + Lee Insolvency was appointed as administrator of the company on Oct. 19, 2023. ZIP MASTER 2023-1: S&P Affirms B (sf) Rating on Class F Notes ------------------------------------------------------------- S&P Global Ratings affirmed its ratings on six classes of notes issued by Perpetual Corporate Trust Ltd. as trustee of Zip Master Trust - Series 2021-2 and seven classes of notes issued by Perpetual Corporate Trust as trustee of Zip Master Trust - Series 2023-1. The rating actions on Series 2021-2, which follow the restructure of the transaction and issuance of additional class G notes, reflect S&P's updated view of the performance of the underlying pool of receivables held by Zip Master Trust and the credit support and various liquidity support mechanisms available to each rated class of notes. The rating actions reflect a decrease to zero from A$24.375 million in the loss reserve. At the same time, S&P affirmed its ratings on Series 2023-1, reflecting its updated view of the performance of the pool of receivables. S&P said, "Following our review of the latest available historical payment, purchase, charge-off, yield, and dilution rates of Zip Master Trust, we updated our base-case assumptions in line with our global consumer receivables criteria, taking into consideration macroeconomic conditions and industry trends. The revision reflects our view that Zip Master Trust has experienced a decreasing dilution rate, relatively higher adjusted yield, and reduced loss volatility. "Series 2021-2 and Series 2023-1 remain in a revolving period. Using our revised base-case assumptions, we performed a cash-flow analysis, assuming series rapid amortization. Because there are no documented limits on the proportion of Zip Pay and Zip Money in the overall portfolio securitized, we performed further cash-flow analysis, assuming a shift in the portfolio product composition. Under such scenarios, the available credit enhancement for the rated classes of notes from each series is sufficient to support the various stresses commensurate with our respective current ratings. Both transactions' cash flows and various mechanisms support the timely payment of interest and ultimate payment of principal to the rated classes of notes from each series under our rating stress assumptions." S&P's analysis also incorporates the following base-case assumptions: -- Portfolio composition remains at 45% Zip Money and 55% Zip Pay. -- Adjusted yield rate raised to 10.48% from 10.03%. -- Charge-off rate lowered to 5.05% from 5.10%. -- Payment rate remains at 15.53%. -- Dilutions rate lowered to 0.56% from 0.71%. Ratings Affirmed Zip Master Trust - Series 2021-2 Class A: AAA (sf) Class B: AA (sf) Class C: A (sf) Class D: BBB (sf) Class E: BB (sf) Class F: B (sf) Zip Master Trust - Series 2023-1 Class A1: AAA (sf) Class A2: AAA (sf) Class B: AA (sf) Class C: A (sf) Class D: BBB (sf) Class E: BB (sf) Class F: B (sf) ========= C H I N A ========= COUNTRY GARDEN: Aims Offshore Debt Restructuring by Year End ------------------------------------------------------------ Reuters reports that Country Garden is aiming to pull together a tentative plan to restructure its offshore debt by the end of this year, two sources with direct knowledge of the matter said. Reuters relates that the nation's biggest private property developer, which missed a coupon payment in October triggering default terms, then aims to start formal negotiations with offshore bondholders by February or March next year. They added the firm expects to inform key bondholders of its cash flow projections by the year's end, as part of the basis for the tentative restructuring plan. The sources declined to be identified as the matter was confidential, Reuters notes. Country Garden, which has almost $11 billion of offshore bonds, declined to comment. Reuters says the timeline for the company's debt restructuring plan has not been reported before. According to Reuters, Country Garden has been in the spotlight since August when its debt woes became public, rattling markets and forcing Beijing to roll out more support measures for the property sector. It has joined a long list of Chinese property developers that are either working on debt restructuring proposals or have presented them to creditors after having defaulted on offshore debt over the past two years. Reuters reported last week that Chinese authorities have asked domestic financial behemoth Ping An Insurance Group to take a controlling stake in Country Garden. That report was denied by Ping An. A state-engineered rescue of Country Garden would be one of the most significant interventions to date by authorities to support the cash-squeezed and highly indebted property sector, which accounts for a quarter of China's economy, the report states. The two sources, who have no information on the bailout talks, said some Country Garden bondholders do not expect a higher recovery rate on their investments even if such a deal were to eventuate, Reuters relays. Reuters adds that offshore bondholders sought urgent talks with Country Garden after it did not pay the $15 million coupon on Oct.18 - the end of a 30-day grace period, sources with direct knowledge of the matter have said. According to Reuters, CreditSights said in a Nov. 2 research note that Country Garden had "formally defaulted" on its offshore bonds due to the missed payment. The company has been privately communicating with some bondholders about its efforts to formulate a debt repayment plan since then, the sources said. Reuters relates that Country Garden said on Oct. 10 that it had appointed CICC, Houlihan Lokey, and law firm Sidley Austin as advisers to examine its capital structure and liquidity position and formulate a "holistic" solution to repay its offshore debt. The advisers have begun due diligence on Country Garden's financial condition, including looking at cash flow for onshore projects, said the two sources and a separate source familiar with the matter, Reuters relays. As yet, few Chinese property developers have reached agreements on debt repayment plans. Sunac China Holdings Ltd in October became the first to complete the debt revamp scheme for its $9 billion offshore debt after winning approval from creditors and courts, according to Reuters. Bigger rival China Evergrande, however, saw its initial $23 billion offshore debt restructuring plan thrown off course in September after Chinese authorities launched an investigation into its billionaire founder Hui Ka Yan and a flagship unit, the report note. About Country Garden Country Garden Holdings Company Limited -- https://www.countrygarden.com.cn/en/home -- an investment holding company, invests, develops, and constructs real estate properties primarily in Mainland China. The company operates in two segments, Property Development and Construction. It develops residential projects, such as townhouses and condominiums; and car parks and retail shops. The company also develops, operates, and manages hotels. In addition, it researches and develops robots; sells electronic hardware and food; and provides interior decoration, agriculture, landscape design, investment and management consulting, cultural activity planning, and real estate consulting services. As reported in the Troubled Company Reporter-Asia Pacific in September 2023, Moody's Investors Service has downgraded Country Garden Holdings Company Limited's corporate family rating to Ca from Caa1 and its senior unsecured rating to C from Caa2. The outlook remains negative. "The rating downgrades with negative outlook reflect Country Garden's tight liquidity and heightened default risk, as well as the likely weak recovery prospects for the company's bondholders," said Kaven Tsang, a Moody's Senior Vice President. SHANGRAO CITY CONSTRUCTION: Fitch Affirms Then Withdraws 'BB+' IDRs ------------------------------------------------------------------- Fitch Ratings has affirmed China-based Shangrao City Construction Investment Development Group Co., Ltd.'s (SCID) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'BB+'. The Outlook is Stable. At the same time, Fitch has withdrawn all the ratings on SCID. Fitch regards SCID as a government-related entity (GRE) and its rating approach is based on its expectation of a high likelihood of exceptional government support for the entity, if needed. Fitch has not adopted the Parent and Subsidiary Linkage Rating Criteria, as Fitch believes SCID has a strong linkage with the local government, due to its public-service mission, despite the indirect shareholding structure. Fitch has chosen to withdraw the ratings for commercial reasons. KEY RATING DRIVERS Status, Ownership and Control: 'Strong' Shangrao Urban Operation (Holding) Group Co.,Ltd. (SUOG) owned 96.67% of SCID at end-August 2023. Its 'Strong' assessment reflects the Shangrao municipal government's indirect shareholding despite its control over the company. The local government directly appoints the board and senior management team. SCID reports its annual financing, investment plans and project status to the government via Shangrao Investment Holding Group Co.,Ltd., the GRE that fully owns SUOG. Support Track Record: 'Strong' SCID's financial stability is partly reliant on local government support, including subsidies of CNY447 million in 2022. The government injected additional paid-in capital of CNY600 million and CNY900 million in 2021 and 2022, respectively, to decrease SCID's high leverage. It also made revenue-generating asset injections and channelled special government bonds totalling CNY1.3 billion in 2022. Part of SCID's debt associated with legacy projects will be repaid by the government. Socio-Political Implications of Default: 'Moderate' Fitch expects SCID, as the largest infrastructure developer in Shangrao, to continue to undertake projects, a sign of its economic importance. The city's urbanisation rate of 55.94% in 2022 was lower than China's overall rate of 65.22%, suggesting that investment in urban development projects will continue. So a default by SCID would not necessarily cause material disruptions, as its subsidiaries may continue providing the services and potential substitutes may step in to ensure the projects can continue. Financial Implications of Default: 'Very Strong' SCID carries out an important role in financing urban development projects in Shangrao, in compliance with the local government's development plan. It borrows from various financial institutions, including policy banks, and raises funds in the market directly. It had outstanding borrowings of CNY64 billion in 2022, equivalent to 57% of the local government's debt. Fitch believes a default could diminish confidence in lending to GREs, as most of SCID's debt is associated with urban development projects. A default may also significantly hurt the financing options and borrowing capacity of other projects. Standalone Credit Profile SCID's 'b' Standalone Credit Profile (SCP) takes into consideration the company's 'Midrange' revenue defensibility and operating risk, as well as its high net leverage. The SCP also takes into account peers that operate similar businesses in comparable regions. Revenue Defensibility 'Midrange' SCID's core business of agent construction, including infrastructure, land development and resettlement housing, accounted for 25% of its revenue in 2022, down from 64% in 2020. The fall was due to the increase in the aluminium business, representing 46% of revenue, after it acquired 29.99% of Fujian Minfa Aluminium Inc. Fitch expects core business demand to fluctuate with economic performance, as it is driven largely by general economic development within Shangrao municipality. Shangrao's steady economic growth and SCID's diversified project portfolio partially offset customer concentration. Operating Risk 'Midrange' Fitch does not expect high volatility in costs for the agent-construction segment. Potential cost fluctuations are mitigated by a cost-plus contractual framework, which results in a gross profit margin of around 8%. Fitch expects the contractual framework that secures its gross margin to continue as part of the local government's favourable policy. A gradual recovery from the Covid-19 pandemic may also provide some upside on its margin. Fitch expects supply-cost increases to be recoverable under the framework, but there may be delays on collections from the local government. Financial Profile 'Weaker' SCID relies on the government's capital injections and debt funding for urban development. Fitch projects that net leverage will be at above 60x in 2027 under its rating case, leading to the 'Weaker' assessment. The high leverage is due to capex demands of SCID's public mandates and its stressed profitability is due to the nature of its urban development business. However, SCID has solid market access and an ample liquidity cushion to absorb any short-term economic shocks. Derivation Summary The entity's ratings reflect the four factors assessed under its Government-Related Entities Rating Criteria, combined with the 'b' SCP assessed under Fitch's Public Sector, Revenue-Supported Entities Rating Criteria. Issuer Profile SCID finances and manages public works, including infrastructure, land development and resettlement housing in Shangrao, Jiangxi province, southeast China. The projects are mandated by the local government and policy changes could affect the entity's core business. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Not applicable, as the ratings have been withdrawn. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Not applicable, as the ratings have been withdrawn ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Following the withdrawal of SCID's ratings, Fitch will no longer be providing the associated ESG Relevance Scores. Entity/Debt Rating Prior ----------- ------ ----- Shangrao City Construction Investment Development Group Co., Ltd. LT IDR BB+ Affirmed BB+ LT IDR WD Withdrawn BB+ LC LT IDR BB+ Affirmed BB+ LC LT IDR WD Withdrawn BB+ ========= I N D I A ========= A. K. BUILDERS: CARE Keeps C Debt Rating in Not Cooperating ----------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of A. K. Builders (AKB) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 8.00 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Short Term 10.00 CARE A4; ISSUER NOT Bank Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated November 1, 2022, placed the rating(s) of AKB under the 'issuer non-cooperating' category as AKB 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. AKB continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 17, 2023, September 27, 2023, October 7, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). A.K. Builders (AKB) is a proprietorship firm established in 1999 by Mr Ashok Kumar. AKB is engaged in the civil construction work in Punjab, Sikkim, Madhya Pradesh and Jharkhand which includes infrastructure development, road works, construction of educational institutes, earthworks etc. The firm is registered as a class 'A' contractor with Public Work Department (PWD) of Punjab and Madhya Pradesh. ADELSON PHARMA: Liquidation Process Case Summary ------------------------------------------------ Debtor: Adelson Pharma Private Limited Plot No. 84/F/2, Kasturaba Nagar, Hirapura, Ward No. 14, Jaipur, Rajasthan-302019 Liquidation Commencement Date: October 12, 2023 Court: National Company Law Tribunal, Jaipur Bench Liquidator: Mahendra Prakash Khandelwal 202, Prism Tower, Opp. Rajasthan Police Mukhaliya, Gate No. 2 Lalkothi, Jaipur, Rajasthan-302015 Email: mahendra927@gmail.com Adelson.ibc@gmail.com Last date for submission of claims: November 11, 2023 BF-NTPC : Voluntary Liquidation Process Case Summary ---------------------------------------------------- Debtor: BF-NTPC Energy Systems Limited Registered Office: #14th Floor, Antariksh Bhavan 22, Kasturba Gandhi Marg, New Delhi Central Delhi DL 110001 Other Address: #CS 8-10, 6th Floor, Tower- A, The Corenthum, A-41, Sector-62 NOIDA 201301 Liquidation Commencement Date: October 9, 2018 Court: National Company Law Tribunal, Chandigarh Bench Liquidator: Mr. Narender Kumar Sharma Plot 112A, Udyog Vihar, Phase-V, Gurgaon, Haryana-122016 Email: nksharma.fcs@gmail.com nksharma.ip@gmail.com Mobile No.: 9818782268 Last date for submission of claims: November 8, 2018 BHALKESHWAR SUGARS: CRISIL Keeps D Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Bhalkeshwar Sugars Limited (BSL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 18 CRISIL D (Issuer Not Cooperating) Term Loan 12.5 CRISIL D (Issuer Not Cooperating) Term Loan 43.5 CRISIL D (Issuer Not Cooperating) Term Loan 28 CRISIL D (Issuer Not Cooperating) Term Loan 38 CRISIL D (Issuer Not Cooperating) Working Capital 24 CRISIL D (Issuer Not Facility Cooperating) Working Capital 6 CRISIL D (Issuer Not Facility Cooperating) Working Capital 12 CRISIL D (Issuer Not Facility Cooperating) Working Capital 16 CRISIL D (Issuer Not Facility Cooperating) Working Capital 2 CRISIL D (Issuer Not Facility Cooperating) CRISIL Ratings has been consistently following up with BSL for obtaining information through letter and email dated September 11, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of BSL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on BSL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of BSL continues to be 'CRISIL D Issuer Not Cooperating'. Incorporated in 2000, Karnataka-based BSL is promoted by Mr Prakash Khandre. It manufactures sugar and has a cane crushing capacity of about 2500 tonne per day (TPD) and a 14 megawatt co-generation power plant. It is undertaking a debt-funded capital expenditure plan to enhance the sugar crushing capacity up to 4000 TPD and setting up distillery units with total capacity of 60 kilo litres per day. Commercial operation of the distillery is expected to commence from January 2018. BLACK ENERGY: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------ CRISIL Ratings said the ratings on bank facilities of Black Energy India Private Limited (BEIPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 11 CRISIL D (Issuer Not Cooperating) Overdraft Facility 9 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with BEIPL for obtaining information through letter and email dated September 11, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of BEIPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on BEIPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of BEIPL continues to be 'CRISIL D Issuer Not Cooperating'. BEIPL, incorporated in 2012, trades in coal. The company also owns a washery in Bilaspur, Chhattisgarh. Mr. Sanjay Singh and Mr. Rohit Singh are the directors. The operations are primarily managed by Mr. Sanjay Singh. C. P. INDUSTRIES: CRISIL Keeps C Debt Rating in Not Cooperating --------------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of C. P. Industries (CPI) continues to be 'CRISIL C Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 15 CRISIL C (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with CPI for obtaining information through letter and email dated September 11, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of CPI, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on CPI is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of CPI continues to be 'CRISIL C Issuer Not Cooperating'. CPI, established in 1992 by Mr. Chironjilal Shivhare, manufactures and trades in mustard seeds, mustard oil, and mustard oil cake. The firm is based in Gwalior, Madhya Pradesh. CAREER COACHING: CRISIL Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Career Coaching (Alld) Private Limited (CCPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 3.77 CRISIL D (Issuer Not Cooperating) Term Loan 6.23 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with CCPL for obtaining information through letter and email dated September 11, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of CCPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on CCPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of CCPL continues to be 'CRISIL D Issuer Not Cooperating'. CCPL, established in 2004 by Mr. Zafar Bakht and Mr. Saeed Fatima, provides coaching services for various entrance examinations at its coaching institutes located in Allahabad (Uttar Pradesh). CHAPHEKAR AND COMPANY: CRISIL Keeps D Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Chaphekar and Company (CAC) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 4 CRISIL D (Issuer Not Cooperating) Cash Credit 11 CRISIL D (Issuer Not Cooperating) Proposed Bank 1 CRISIL D (Issuer Not Guarantee Cooperating) Proposed Cash 1 CRISIL D (Issuer Not Credit Limit Cooperating) CRISIL Ratings has been consistently following up with CAC for obtaining information through letter and email dated September 11, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of CAC, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on CAC is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of CAC continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Established in 1973 as a partnership firm by Mr M R Chaphekar, CAC undertakes civil construction works related to roads and bridges. Currently, the daily operations are being managed by Mr Ashish Chaphekar. CHITTARANJAN MULTIPURPOSE: CRISIL Keeps D Ratings in Not Coop. -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Chittaranjan Multipurpose Heemghar Private Limited (CMHPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 1 CRISIL D (Issuer Not Cooperating) Cash Credit 5.6 CRISIL D (Issuer Not Cooperating) Term Loan 7.4 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with CMHPL for obtaining information through letter and email dated September 11, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of CMHPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on CMHPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of CMHPL continues to be 'CRISIL D Issuer Not Cooperating'. Incorporated in 2012 and promoted by Mr Kartik Ghosh and Ms Jhulan Ghosh, CMHPL provides cold storage services to potato farmers and traders, and also undertakes opportunistic trading of potatoes. Unit in Hooghly, West Bengal, commenced operations in March 2017. DEEPAK DIAMONDS: CRISIL Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Deepak Diamonds Private Limited (DDPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Export Packing 12.5 CRISIL D (Issuer Not Credit Cooperating) Export Packing 6.4 CRISIL D (Issuer Not Credit Cooperating) Post Shipment 1.1 CRISIL D (Issuer Not Credit Cooperating) Post Shipment 2.5 CRISIL D (Issuer Not Credit Cooperating) Proposed Long Term 14.5 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with DDPL for obtaining information through letter and email dated September 11, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of DDPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on DDPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of DDPL continues to be 'CRISIL D Issuer Not Cooperating'. DDPL was initially set up as a partnership concern in 1988, and reconstituted into a private limited company on July 14, 2014, and renamed DDPL. The company is a family-run business, promoted by Mr Parshottam Patel, his wife, Mrs Savita Patel and son, Mr Vijay Patel. The company mainly manufactures and trades in brown and white diamonds, in the range of 0.5-20 points (100 points equals 1 carat). It has recently ventured into manufacture and export of solitaires. Manufacturing facility is at Surat. EURO MULTIVISION: Liquidation Process Case Summary -------------------------------------------------- Debtor: Euro Multivision Limited Registered Office Address: F-12, Ground Floor, Sangam Arcade Vallabhbhai Road, Ville Parle (West) Mumbai-400 056 Factory Office Address: Survey No. 508, 509 Bhachau, Dudhai Road, Bhachau, Kutch -370 140 Liquidation Commencement Date: October 6, 2023 Court: National Company Law Tribunal, Mumbai Bench Liquidator: Mr. Jigar P. Shah B/801 Gopal Place, Nr. Shiromani Complex, Nehrunagar Cross Road, Nehrunagar, Ahmedbad-380015 Email: ip.jigar@gmail.com liq.euromulti@gmail.com Last date for submission of claims: November 5, 2023 FIDERE FACILITIES: Insolvency Resolution Process Case Summary ------------------------------------------------------------- Debtor: Fidere Facilities Management Private Limited 74, Hemkunt Colony, New Delhi-110048 India Insolvency Commencement Date: October 5, 2023 Estimated date of closure of insolvency resolution process: April 16, 2024 Court: National Company Law Tribunal, New Delhi Bench Insolvency Professional: Amit Goel H. No. 9, Near Patel Institute of Engg. Adarsh Colony, Opp. Bhawna Place Lane Devpuram Muzaffarnagar, Muzaffarnagar, Uttar Pradesh-251001 Email: ip.amitgoel@gmail.com C/o Osrik Resolution Pvt. Ltd., 908, 9th Floor, D Mall Netaji Subhash Place, Pitampura, Delhi-110034 Email: ip.ffmpl@gmail.com Last date for submission of claims: November 2, 2023 FOOD AND BIOTECH: Insolvency Resolution Process Case Summary ------------------------------------------------------------ Debtor: M/s. Food and Biotech Engineers (India) Private Limited Plot No. 41, Flat No. C-2 Second Floor, Tajpur Road Molarband Extension, Near Cosmos School (Badarpur) New Delhi, Delhi, India, 110044 Insolvency Commencement Date: October 16, 2023 Estimated date of closure of insolvency resolution process: April 13, 2024 Court: National Company Law Tribunal, New Delhi Bench Insolvency Professional: Ajay Kumar Atolia 889, Mahaveer Nagar First, Near Durgapura Railway Station, Tonk Road, Jaipur-302018 Email: ajay@srgoyal.com C/o Osrik Resolution Private Limited 908, 9th Floor, D Mall, Netaji Subhash Place Pitampura, New Delhi 110034 Email: cirp.foodandbiotech@gmail.com Last date for submission of claims: October 30, 2023 FUTURE RETAIL: RP Files for Liquidation in NCLT ----------------------------------------------- Live Mint reports that the resolution professional (RP) of Future Retail Ltd (FRL) on Nov. 10 filed for liquidation, marking an inglorious end for the company that once led India's retail revolution. On September 30, creditors had rejected a resolution plan submitted by sole bidder Space Mantra Pvt. Ltd. A Press Trust of India report at the time pegged the bid at INR550 crore, adding it was close to the company's liquidation value. ". . . the resolution professional has filed an application before the National Company Law Tribunal (NCLT), Mumbai bench, for initiation of liquidation of FRL under Section 33 of the Insolvency and Bankruptcy Code, 2016 on 9 November," the company said in a statement to the stock exchanges, the Mint relays. According to the report, state-owned Bank of India had on April 14, 2022, initiated insolvency proceedings against FRL for non-payment of dues under the terms of a framework agreement between the company and the bank. However, it took more than two months for this petition to be admitted. Following its admission, Vijay Kumar Iyer was appointed as the RP. FRL owes its creditors led by Bank of India over INR19,000 crore, the Mint discloses citing claims submitted and approved under the insolvency process up to August 24. Lenders include Bank of New York Mellon, Bank of Baroda, Union Bank of India, and Central Bank of India. The Mint notes that the final list of prospective resolution applicants included Reliance Retail, April Moon Retail (a joint venture firm of Adani Airport Holdings and the promoters of the Flamingo Group), Jindal Power, JC Flower Asset Management Co. and UV Stressed Asset Management. These entities, along with others, were also a part of the list of prospective resolution applicants announced in November last year. Lenders first set October 20, 2022 as the date for submitting bids and extended it later to November 3 2022, and further to December 15. Despite multiple attempts, the RP failed to receive any suitors for the debt-laden company, prompting Nov. 10's filing, the Mint says. Meanwhile, Future Group founder Kishore Biyani has filed a petition before the Bombay high court challenging Bank of India's direction to BDO to conduct a forensic audit of FRL, the Mint reports. Earlier, Bank of India has asked Biyani and his brother Rakesh Biyani to respond to findings made in the forensic audit report by BDO. About Future Group Future Group operates multi-branded retail outlets. The company's retail chains include department stores, outlet stores, sportswear, home improvement and consumer durables, supermarket, and convenience stores as well as food parks. As reported in the Troubled Company Reporter-Asia Pacific in late July 2022, an Indian court agreed to send Future Retail Ltd. into bankruptcy, allowing the creditors to find a new owner for the beleaguered retailer. According to Bloomberg News, the National Company Law Tribunal on July 20 gave its verdict on a petition by Bank of India to start the bankruptcy-resolution process for the cash-strapped retailer. It dismissed allegations from the local unit of Amazon.com Inc. that Future Retail's lenders were colluding with its founders to push the firm into insolvency. The court also appointed an administrator to take over the management at Future Retail. GANGA DAIRY: CARE Lowers Rating on INR38.99cr LT Loan to D ---------------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of Ganga Dairy (GD), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 38.99 CARE D; Revised from CARE BB; Facilities Stable Rationale and key rating drivers The revision in the rating assigned to the bank facilities of GD takes into consideration overutilization in the working capital limits of the firm. Rating sensitivities: Factors likely to lead to rating actions Positive factors * Improvement in the liquidity position of the firm as reflected by timely servicing of its debt obligations. Analytical approach: Standalone Detailed description of the key rating drivers: Key weaknesses * Overutilization in the working capital limits: As per the feedback received from the banker, there has been delay in settlement of seasonal limits availed by the firm and it is overdue till date. The delay in repayment was on account of stretched liquidity position of the firm. Liquidity: Poor The liquidity position of the firm remained poor characterized by delay in settlement of seasonal cash credit limit due to delay in the realization from the customer leading to stretched liquidity position of the firm. Aligarh, Uttar Pradesh based Ganga Dairy (GD) was established in July, 1993 as a proprietorship firm. The firm is currently managed by Mr. Arvind Kumar Agrawal. The firm is engaged in the processing of milk and manufacturing of milk products and chicory products. The main products of GD include; liquid pasteurized milk, milk powder, white butter, Ag-mark desi ghee, dairy mix, chicory powder, chicory extract, etc. The manufacturing facility of the firm is located at Atrauli, Uttar Pradesh with an installed capacity to process 3,00,000 litres of milk per day and 20 metric tonnes of chicory per day as on September 30, 2023. The major raw materials required are raw milk and dry chicory which the firm procures directly from local farmers/milk centres and traders. It has its own 5-6 collection centres located within UP region. The firm sells its pasteurized milk & milk products under its own brand name "Tulsi" directly and also through its distributors (30-40 distributors) mainly in the northern region of India (Uttar Pradesh, Uttarakhand, Delhi, Haryana, Punjab, Rajasthan, Madhya Pradesh and Bihar). The firm sells chicory products (which contributes ~20% of total operating income in FY23) mainly to export company namely; "RK Agroexport Private Limited" located in Atrauli. GAUTAMI CHEMICALS: CRISIL Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Gautami Chemicals and Pesticides Private Limited (GCP) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6.5 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with GCP for obtaining information through letter and email dated September 11, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of GCP, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on GCP is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of GCP continues to be 'CRISIL D Issuer Not Cooperating'. Incorporated in 1996, GCP is engaged in manufacturing and sale of pesticides. The Rajahmundry based company is promoted by Mr. Goluguri Bapi Raju. GO FIRST: Lenders Seek to Recover Up to 30% ------------------------------------------- Financial Express reports that lenders of Go First are expecting to recover around 25%-30% or INR1,600-1,900 crore of their exposure to the beleaguered airline, a senior banker told FE. This will come primarily from the parcel of land in Thane that the Wadia group has given as collateral to the banks. The grounded airline, which stopped flying from May 3, is undergoing an insolvency resolution process under the Insolvency and Bankruptcy Code (IBC), owes INR6,521 crore to the lenders including Central Bank of India, Bank of Baroda, Deutsche Bank, and IDBI Bank, FE discloses. FE says the recovery of 25%-30% is a little less than what the financial creditors have realised from the IBC process in FY23 at 36%. In the last couple of years, the recovery has improved from a dismal 17% in FY 21 and 23% in FY 22. Kaushik Khona, CEO of Go First, in his interaction with the media in May this year, had pegged the value of 94 acres of land at INR3,000 crore, FE relates. This comes in the backdrop of the Ministry of Civil Aviation's (MCA) protection to a corporate debtor from the recovery of dues under the IBC through aircraft, helicopters and engines – a major relief for the aircraft lessors. However, from a lender's perspective, this was a significant setback. According to FE, the aviation sector regulator, on November 3, informed the Delhi High Court via an affidavit that the government directive exempting aviation leases from the bankruptcy moratorium should be applicable even to companies undergoing insolvency proceedings. Bankers are keeping their fingers crossed for the verdict of the Delhi High Court in this matter as it will decide the fate of the beleaguered airline, FE relates. "Everything depends on the judgment of the Delhi High Court. If the high court judgment comes that the lessors can take the aircrafts, then nothing will be left for us and liquidation will be the only option," another lender told FE. "Without aircrafts, there will be no airline," he added. The Committee of Creditors (CoC) of Go First held a meeting on Nov. 7 in which it decided to extend the deadline by 90 days for the resolution under Corporate Insolvency Resolution Process and not to release more funds to the airline. "We have agreed for the 90-day extension for the resolution, now the RP (Resolution Professional) will file a formal application with the National Company Law Tribunal," said the banker. As per the rules, the RP is required to approval of the CoC to file application with the NCLT, FE notes. About Go First Go First, formerly known as GoAir, was an Indian ultra-low-cost airline based in Mumbai, Maharashtra. Go First was incorporated in April 2004 as GoAir and commenced flight operations in November the following year. Its inaugural flight was from Mumbai to Ahmedabad. The airline is owned by the Wadia Group. Go First filed an application for voluntary insolvency resolution proceedings before National Company Law Tribunal (NCLT) on May 2, 2023. The company said the filing with the NCLT comes after Pratt & Whitney, the exclusive engine supplier for the airline's Airbus A320neo aircraft fleet, refused to comply with an order to release engines to the airline that would have allowed it return to full operations. Go First owes INR6,521 crore to its financial creditors, Bank of Baroda, IDBI Bank, and Deutsche Bank. The airline has a total liability of about INR11,463 crore to banks, other creditors, vendors, and others. On May 10, 2023, the NCLT accepted Go First's voluntary insolvency petition. The NCLT bench appointed Abhilash Lal as the interim resolution professional to look after the affairs of Go First and also suspended its board as part of the insolvency resolution process. GO FIRST: Lenders to Challenge Move to Let Lessors Reclaim Planes ----------------------------------------------------------------- Reuters reports that lenders of grounded Indian airline Go First plan to legally challenge the aviation watchdog's interpretation to retrospectively apply changes to bankruptcy law that could allow lessors to reclaim planes, according to four people with direct knowledge. India last month tweaked its laws to exclude leased aircraft from assets that are frozen during bankruptcy proceedings, Reuters notes. With lessors of Go First up in arms about not managing to get their planes back, the Directorate General of Civil Aviation, in a court filing, said the law changes will apply restrospectively, indicating relief for the lessors, Reuters relays. But lenders of Go, to whom the airline owes $783 million, fear the value of the grounded airline will deteriorate further if planes are released, diminishing interest from potential bidders and putting recovery of their funds at risk, the sources, as cited by Reuters, said. They plan to tell a Delhi High Court judge the bankruptcy law changes should apply prospectively, not retrospectively, since Go was already under bankruptcy protection when the law was amended, the sources said. "Without the planes, the value of the airline will deteriorate. The amended law seems to have deterred bidders already," Reuters quotes one banker at a state-run bank with exposure to the airline as saying. The Delhi court is set to hear the ongoing dispute between lessors and Go First next on Nov. 17. Reuters says the lenders' plea, if allowed by court, would be a setback for lessors and mean more than 50 Airbus planes of Go First would continue to be grounded in India. About Go First Go First, formerly known as GoAir, was an Indian ultra-low-cost airline based in Mumbai, Maharashtra. Go First was incorporated in April 2004 as GoAir and commenced flight operations in November the following year. Its inaugural flight was from Mumbai to Ahmedabad. The airline is owned by the Wadia Group. Go First filed an application for voluntary insolvency resolution proceedings before National Company Law Tribunal (NCLT) on May 2, 2023. The company said the filing with the NCLT comes after Pratt & Whitney, the exclusive engine supplier for the airline's Airbus A320neo aircraft fleet, refused to comply with an order to release engines to the airline that would have allowed it return to full operations. Go First owes INR6,521 crore to its financial creditors, Bank of Baroda, IDBI Bank, and Deutsche Bank. The airline has a total liability of about INR11,463 crore to banks, other creditors, vendors, and others. On May 10, 2023, the NCLT accepted Go First's voluntary insolvency petition. The NCLT bench appointed Abhilash Lal as the interim resolution professional to look after the affairs of Go First and also suspended its board as part of the insolvency resolution process. HI-POINT INVESTMENT: Liquidation Process Case Summary ----------------------------------------------------- Debtor: Hi-Point Investment And Finance Private Limited B-292, Chandrakanta Complex, Shop No. 2&3(Basement), Near Metro Pilar No. 16, New Ashok Nagar, New Delhi-110096 Liquidation Commencement Date: October 5, 2023 Court: National Company Law Tribunal, Principal Bench Liquidator: Prassan Navin Kumar Sinha F-242B Third Floor, Mangal Bazar, AVP Public School Laxmi Nagar, New Delhi-110092 Email: csprassan@gmail.com C/o B.B. Mathur & Co. Chartered Accountants, 4th Floor, Level 4, Delite Cinema Building 4/1, Asaf Ali/Road, Delhi-110002 Email: ip.hipoint@gmail.com Last date for submission of claims: November 19, 2023 HORIZON LEISURE: CRISIL Keeps D Debt Rating in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Horizon Leisure Hotels Private Limited (HLHPL) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term 27.17 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with HLHPL for obtaining information through letter and email dated September 11, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of HLHPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on HLHPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of HLHPL continues to be 'CRISIL D Issuer Not Cooperating'. Incorporated on November 09, 2009, HLHPL is Indore-based real estate developer Horizon group's first venture into the hospitality sector, which it operates through a tie-up with the Best Western group. The hotel began commercial operations in 2012-13 (refers to financial year, April 1 to March 31). KASHIPUR SITARGANJ: Ind-Ra Keeps D Loan Rating in NonCooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Kashipur Sitarganj Highways Pvt Ltd.'s bank loans' rating in the non-cooperating category. The issuer did not participate in the surveillance exercise despite continuous requests and follow-ups by the agency through phone calls and emails. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating action is: -- INR4.220 bil. Senior long-term rupee loans due on March 2029 maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The issuer did not co-operate; based on best available information The rating was last reviewed on November 19, 2019. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the rating. Company Profile Kashipur Sitarganj Highways is a special purpose vehicle that was incorporated to implement a 77.2-kilometre two-to-four-lane expansion project between Kashipur and Sitarganj in Uttarakhand on National Highway 74, under a 21-year concession from the National Highways Authority of India ('IND AAA'/Stable). KAYTEE CORPORATION: Ind-Ra Keeps BB Loan Rating in Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has maintained Kaytee Corporation Private Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance 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 the rating. The rating will continue to appear as 'IND BB/Negative (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR 242 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND BB/Negative / IND A4+ (ISSUER NOT COOPERATING) rating; -- INR 35 mil. Non-Fund Based Working Capital Limit maintained in non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR 17.3 mil. Term loan due on Mar 31, 2022 maintained in non- cooperating category with IND BB/Negative (ISSUER NOT COOPERATING) rating. Company Profile KCPL was established in 1944 as a trading concern with interests in cotton and yarns. It started manufacturing garments in 1974. It was registered as a private limited company in June 1994. At present, it is dealing in yarn, fabrics (trading) and garments (manufacturing). KDM CLOTHING: Ind-Ra Keeps B+ Bank Loan Rating in Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained KDM Clothing Co.'s instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance 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 the rating. The rating will continue to appear as 'IND B+/Negative (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR 35 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND B+/Negative/IND A4 (ISSUER NOT COOPERATING) rating; and -- INR 3.45 mil. Term loan due on May 31, 2021 maintained in non- cooperating category with IND B+/Negative (ISSUER NOT COOPERATING) rating. Company Profile Established in 2007, KDM Clothing manufactures hosiery goods and sweaters, and sells them both in India and overseas markets. KOHENOOR INDUSTRIES: CRISIL Keeps D Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Kohenoor Industries (KI; part of Maa Kalika group) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7 CRISIL D (Issuer Not Cooperating) Cash Credit 7 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with KI for obtaining information through letter and email dated September 11, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of KI, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on KI is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of KI continues to be 'CRISIL D Issuer Not Cooperating'. For arriving at its rating, CRISIL Ratings has combined the business and financial risk profiles of KI, Shree Krushna Enterprises (SKE), Maa Kalika Bhandar (MKB), and Dwarikamayee Bhandar (DB). The firms, together referred to as the Maa Kalika group, are under a common management with common customer and supplier base. Moreover, the promoters treat the four entities as one single group for funding and support. The Maa Kalika group, promoted by the Odisha-based Jajodia family is primarily engaged in wholesale trading in of agro items such as sugar, pulses, and edible oil. Operations are primarily managed by Mr Pawan Kumar Jajodia and his son, Mr Jay Jajodia. KP SOLVEX: Ind-Ra Keeps B Bank Loan Rating in Non-Cooperating ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained K.P. Solvex Pvt Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance 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 the rating. The rating will continue to appear as 'IND B/Negative (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating action is: -- INR 310 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND B/Negative/IND A4 (ISSUER NOT COOPERATING) rating. Company Profile Incorporated in 1983, K.P. Solvex manufactures soya oil, oil cakes and de oil cakes. It also trades soya seeds and grains. Its solvent extraction plant is located in Tikamgarh, Madhya Pradesh. The plant has an installed capacity of 1,00,000mtpa of solvent extraction and 15,000mtpa of refining. The company is managed by three promoters - I.K Kochar, B.K Trivedi and Kushal Jain. KPC FLEXI: CARE Keeps C Debt Rating in Not Cooperating Category --------------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of KPC Flexi Tubes (KFT) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 2.20 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Short Term 12.00 CARE A4; ISSUER NOT Bank Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated October 27, 2022, placed the rating(s) of KFT under the 'issuer non-cooperating' category as KFT 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. KFT continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 12, 2023, September 22, 2023, October 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). KPC Flexi Tubes (KFT) was established in 1988 as a partnership firm by Mr K.P. Chandhok and Mr Gaurav Chandhok. The firm is engaged in manufacturing and export of turned and machined components, rubber moulded goods, sheet metal components and metal flexible hose. Its manufacturing facility is located in Faridabad, Haryana. KTL PVT: Ind-Ra Keeps BB Bank Loan Rating in Non-Cooperating ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has maintained KTL Pvt. Ltd.'s instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance 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 the rating. The rating will continue to appear as 'IND BB/Negative (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR 590 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND BB/Negative/IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR 25 mil. Non-Fund Based Working Capital Limit maintained in non-cooperating category IND A4+ (ISSUER NOT COOPERATING) rating. Company Profile Established in 1987, Kanpur-based KTL is a Maruti Suzuki dealer operating nine Maruti Suzuki showrooms including six in Kanpur, one in Agra and two in Lucknow. LAXMI TRADERS: CARE Keeps C Debt Rating in Not Cooperating ---------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of Sri Laxmi Traders (SLT) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 7.00 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated October 3, 2022, placed the rating(s) of SLT under the 'issuer non-cooperating' category as SLT 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. SLT continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated August 19, 2023, August 29, 2023, September 8, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Sri Laxmi Traders (SLT) was set up as a proprietorship entity in 2006 by Mr Surendra Kumar Bhagat of Purnea District, Bihar. The entity is engaged in wholesale trading of agro commodities like maize, onion, paddy and potato which is procured from the local farmers and sold in the states of Orissa, Gujarat, West Bengal, Karnataka, etc. Mr Surendra Kumar Bhagat, the proprietor, having an experience of 25 years in the agro-commodity business looks after the overall affairs of the entity. LN FIELDS: Ind-Ra Keeps B Bank Loan Rating in Non-Cooperating ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained L N Fields Pvt Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance 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 the rating. The rating will continue to appear as 'IND B/Negative (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating action is: -- INR 120 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND B/Negative (ISSUER NOT COOPERATING) rating. Company Profile Founded by Arvind Karnani in 1998, LNFPL is engaged in the trading of agro chemicals and agro commodities. Its target customers are tea plantation companies such as Jayshree Tea & Industries Ltd and Goodricke Group Limited. MAHATHI SOFTWARE: Ind-Ra Keeps B Loan Rating in Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Mahathi Software Private Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance 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 the rating. The rating will continue to appear as 'IND B/Negative (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR 48 mil. Term loan due on Dec 31, 2032 maintained in non- cooperating category with IND B/Negative (ISSUER NOT COOPERATING) rating; and -- INR 14.3 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND B/Negative/IND A4 (ISSUER NOT COOPERATING) rating. Company Profile Incorporated in 2001, Mahathi Software provides software services to healthcare organizations. The company is also engaged in leasing of a three-story building with a built-up area of 1,35,000sf in Rushikonda, Vishakapatnam to various software companies. MANGLAM TIMBERS: Ind-Ra Keeps B Loan Rating in Non-Cooperating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Manglam Timbers instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance 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 the rating. The rating will continue to appear as 'IND B/Negative (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR 17.5 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND B/Negative (ISSUER NOT OPERATING) rating; and -- INR 40 mil. Non-Fund Based Working Capital Limit maintained in non-cooperating category IND A4 (ISSUER NOT COOPERATING) rating. Company Profile Formed in 1995 by Mahesh Patel, MT imports, supplies and trades Indian, African and Burmese teak wood logs. It procures teak woods and processes it as per customer requirements. MERCY CORPS: Voluntary Liquidation Process Case Summary ------------------------------------------------------- Debtor: M/s. Mercy Corps India 219, Anarkali Bazar, Jhandewalan Extension, New Delhi-110055 Liquidation Commencement Date: October 13, 2023 Court: National Company Law Tribunal, New Delhi Bench Liquidator: Mr. Krit Narayan Mishra C-3, Ashoka Apartments, Plot No. 8, Sector 12, Dwarka, New Delhi-110078 Email: liquidator.mercycorpsindia@gmail.com Mobile No: 9910859116 Last date for submission of claims: November 11, 2023 MKD INFRASTRUCTURE: CARE Keeps D Debt Rating in Not Cooperating --------------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of Mkd Infrastructure & Projects Private Limited (MIPPL) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Rationale and Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated October 18, 2022, placed the rating(s) of MIPPL under the 'issuer non-cooperating' category as MIPPL 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. MIPPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 3, 2023, September 13, 2023, September 23, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). MIPPL, incorporated in the year 2012, is promoted by Mr. Paresh Rathi, Director, and is engaged in the construction of building for private players in the state of Maharashtra. MOENUS TEXTILE: Ind-Ra Keeps D Bank Loan Rating in Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has maintained Moenus Textile Private Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance 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 the rating. The rating will continue to appear as 'IND D/Negative (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR 121 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND D/Negative (ISSUER NOT COOPERATING) rating; -- INR 120 mil. Term loan due on Mar 31, 2025 maintained in non- cooperating category IND D/Negative (ISSUER NOT COOPERATING) rating; and -- INR 21 mil. Non-Fund Based Working Capital limit maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Company Profile Incorporated in 2005, Moenus Textile manufactures cotton yarn at its facility in Mandideep, Madhya Pradesh. In addition, it has a waste recycling plant in Mandideep to produce low-value cotton yarn. NAGAUR WATER: Liquidation Process Case Summary ---------------------------------------------- Debtor: Nagaur Water Supply Company Private Limited A-806, Sankalp Iconic Tower, Iscon-Ambli Road, Ahmedabad, Ahmedabad, Gujarat-380054 Liquidation Commencement Date: October 16, 2023 Court: National Company Law Tribunal, Ahmedabad Bench Liquidator: Mr. Rajendra Sanghi B/2d Siddh Chhakra Apartment, Near Sargam Shopping Center, Parle Point, Surat, Gujarat-395007 Email: rajendra.sanghi@yahoo.co.in AAA Insolvency Professionals LLP, E-104, Kailash Colony, Greater Kailash-I, New Delhi-110048 Email: rajendra.sanghi@aaainsolvency.com rajendra.sanghi@yahoo.co.in cirp.nagaur@gmail.com Last date for submission of claims: November 15, 2023 NEO PACK: Ind-Ra Keeps BB- Bank Loan Rating in Non-Cooperating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Neo Pack Plast (India) Private Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance 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 the rating. The rating will continue to appear as 'IND BB-/Negative (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR 50 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND BB-/Negative (ISSUER NOT COOPERATING) rating; ¬-- INR 5.8 mil. Term loan maintained in non-cooperating category with IND BB-/Negative(ISSUER NOT COOPERATING) rating; and -- INR 3.5 mil. Non-Fund Based Working Capital Limit maintained in non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating. Company Profile Incorporated in 1995 by Aziz Khan, NPPIPL manufactures and supplies paints, resins, varnish, preservatives and plastic liner bags. The company has one unit in Vapi for manufacturing paints and related products and another unit in Daman for manufacturing plastic bags. NIKKI STEELS: Ind-Ra Keeps B+ Bank Loan Rating in Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Nikki Steels Private Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance 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 the rating. The rating will continue to appear as 'IND B+/Negative (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating action is: -- INR 100 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND B+/Negative/IND A4 (ISSUER NOT COOPERATING) rating. Company Profile Established in 2006, Ghaziabad-based Nikki Steels supplies steel bars, steel sheets and plates, coils, plates, metal wires, mild steel pipes and tubes to various construction and engineering companies. OLIVE SILK: Ind-Ra Keeps BB Bank Loan Rating in Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Olive Tex Silk Mills Private Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance 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 the rating. The rating will continue to appear as 'IND BB/Negative (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR 300 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND BB/Negative/IND A4+(ISSUER NOT COOPERATING) rating; and -- INR 4.6 mil. Term loan on Aug 31, 2018 maintained in non- cooperating category with IND BB/Negative (ISSUER NOT COOPERATING) rating. Company Profile Incorporated in 2007, Olive Tex Silk Mills is engaged in garment manufacturing at two sites in Vapi (Daman and Diu district). In addition, it has two parcels of land in Tarapur (Mumbai) for fabric weaving. OZONE INFRA: Ind-Ra Keeps D Bank Loan Rating in Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Ozone Infra Projects instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance 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 the rating. The rating will continue to appear as 'IND D/Negative (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating action is: -- INR 75 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND D/Negative/IND D (ISSUER NOT COOPERATING) rating. Company Profile Set up in 2008 as a partnership firm, OIP provides engineering, procurement and construction services for government projects such as roads, bridges, canals and civil construction projects. PACIFIC ACADEMY: CARE Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of Pacific Academy of Higher Education & Research Society (PAHERS) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 43.09 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 6.20 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 October 31, 2022, placed the rating(s) of PAHERS under the 'issuer non-cooperating' category as PAHERS 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. PAHERS continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 16, 2023, September 26, 2023, October 6, 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). Udaipur-based (Rajasthan) PAHERS was formed as Pacific Education Society in October 1995 with an objective to set up educational institutions. In March 2007, its name was changed to the current form. PAHERS was founded by Mr B.R. Agarwal who is the founder Chairman of Pacific Group (PG). The other society members are Mrs Leela Devi Agarwal, Mr Rahul Agarwal and Mr Ashish Agarwal. PAHERS offers courses in varied fields including pharmacy, dental, engineering, management, education, media and mass communication, information technology, hospitality and fashion technology. PADMEY IMPEX: Ind-Ra Keeps D Bank Loan Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Padmey Impex Private Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance 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 the rating. The rating will continue to appear as 'IND D/Negative (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR 100 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND D/Negative/IND D (ISSUER NOT COOPERATING) rating; and -- INR 80 mil. Non-Fund Based Working Capital Limit maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Company Profile Established in 2008, Padmey Impex Private Limited manufactures plastic bags at its unit in Daman (Maharashtra). RAMESH GOENKA: Voluntary Liquidation Process Case Summary --------------------------------------------------------- Debtor: Ramesh Goenka Foundation 5th Floor, B Wing Suashish IT Park, CTS No 68/E Off Dattapada Road, Rajendra Nagar, Opp. Tata Steel Co, Borivali East, Mumbai 400066 Maharashtra, India Liquidation Commencement Date: October 3, 2023 Court: National Company Law Tribunal, Mumbai Bench Liquidator: Girish K Hingorani 5C Mehta Sadan, S H Parelkar Marg, Dadar, Mumbai 400028 Email: girish2207@reddifmail.com Mobile No: 9820099783 Last date for submission of claims: November 15, 2023 RAVINDRANATH: Ind-Ra Keeps BB Bank Loan Rating in Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained RAVINDRANATH's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance 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 the rating. The rating will continue to appear as 'IND BB/Negative (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR 20 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND BB/Negative (ISSUER NOT COOPERATING) rating; and -- INR 100 mil. Non-Fund Based Working Capital Limit maintained in non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating. Company Profile Established in 1999 as a proprietorship concern, RAVIDRANATH constructs hostels, colleges, warehouses and roads. It executes government and semi-government orders on a tender basis. RIYA IMPEX: Ind-Ra Hikes Loan Rating to B+, Outlook Stable ---------------------------------------------------------- India Ratings and Research (Ind-Ra) has upgraded Riya Impex's (RI) bank facilities' ratings to 'IND B+' from 'IND B' with a Stable Outlook. The detailed rating actions are: -- INR20 mil. Fund-based working capital limits upgraded with IND B+/Stable rating; and -- INR180 mil. Non-fund-based working capital limits affirmed with IND A4 rating. The upgrade reflects an improvement in RI's EBITDA margin and credit metrics in FY23, and the likelihood of the improvement being sustained in FY24. Key Rating Drivers RI's EBITDA margin improved slightly to a modest 0.9% in FY23 (FY22: 0.6%) due to the implementation of cost-cutting measures. The ROCE was 7.9% in FY23 (FY22: 6%). In FY24, Ind-Ra expects the EBITDA margin to remain at similar levels due to similar nature of operations. FY23 numbers are provisional in nature. RI's credit metrics remained modest but improved in FY23 due to an increase in the absolute EBITDA to INR10.20 million (FY22: INR8.12 million). The gross interest coverage (operating EBITDA/gross interest expense) was 1.31x in FY23 (FY22: 1.23x) and the net financial leverage (adjusted net debt/operating EBITDA) was 15.1x in FY23 (20.26x). Ind-Ra expects the credit metrics to remain largely unchanged in FY24 due to stable EBITDA, stable utilization of non-fund-limits, and the absence of any major debt-led capex plans. Liquidity Indicator – Stretched: RI does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. RI's average maximum utilization of its interchangeable fund-based and non-fund-based limits was 87.42% during the 12 months ended September 2023. The cash flow from operations turned positive at INR53.58 million in FY23 (FY22: negative INR36.01 million) due to an improvement in the inventory holding period to four days (13 days) and debtor collection period to 44 days (45 days). Consequently, the free cash flow also turned positive at INR54.43 million in FY23 (FY22: negative INR36 million). The net working capital cycle remained comfortable and improved to one day in FY23 (FY22: 15 days). The cash and cash equivalents stood at INR0.8 million at FY23 (FYE22: INR0.6 million). The ratings also reflect RI's continued small scale of operations, as indicated by revenue of INR 1193.26 million in FY23 (FY22: INR1,295.71 million). The revenue declined marginally in FY23 owing to the cancellation of an order at the time of supply to customer, as the quality of the product received from the supplier was poor compared to the quality for which the order had been placed. During 1HFY24, RI achieved a revenue of INR720.8 million. In FY24, Ind-Ra expects the revenue to remain stable due to similar nature of operations. The ratings are also constrained by high customer concentration risk, as the firm derives 57.91% of its turnover from the US-based ADK India LLC and 32.38% from Dubai-based Puppy General Trading FZE. The top two customers contributed 90.29% to the revenue in FY23 (FY22: 100%). The ratings, however, continue to be supported by the proprietor's experience of over two decades in the trading of agricultural products such as cashew nuts and cocoa beans. Rating Sensitivities Negative: A decline in the scale of operations, leading to deterioration in the overall credit metrics, and further stress on the liquidity position, will be negative for the ratings. Positive: An increase in the scale of operations, along with the gross interest coverage exceeding 1.8x, and/or an improvement in the liquidity position, all on a sustained basis, would lead to a positive rating action. Company Profile Incorporated in 2010, RI is a proprietorship firm situated in New Delhi. The firm is engaged in the imports and exports of agricultural products such as cashews and cocoa beans. RPL INDUSTRIES: Ind-Ra Keeps BB- Loan Rating in Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained RPL Industries Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance 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 the rating. The rating will continue to appear as 'IND BB-/Negative(ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR 70 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND BB-/Negative/IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR 10 mil. Non-Fund Based Working Capital Limit maintained in non-cooperating category IND A4+ (ISSUER NOT COOPERATING) rating. Company Profile RPL Industries, which was incorporated in 1982, manufactures tires for two-wheeler and three-wheeler vehicles, passenger cars, utility vehicles, light commercial vehicles and farm vehicles. RVR TECHNOLOGIES: Ind-Ra Keeps B Loan Rating in Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained R.V.R. Technologies Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance 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 the rating. The rating will continue to appear as 'IND B/Negative (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating action is: -- INR 65 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND B/Negative(ISSUER NOT COOPERATING) rating. Company Profile Incorporated in 1984, R.V.R Technologies is a Bhopal-based company engaged in the trading and manufacturing of bicycle tubes and tires. S. S. KAMATH: CARE Keeps C Debt Rating in Not Cooperating --------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of S. S. Kamath (SSK) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.70 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated October 6, 2022, placed the rating(s) of SSK under the 'issuer non-cooperating' category as SSK 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. SSK continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated August 22, 2023, September 11, 2023, October 20, 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). Karnataka based, S. S. Kamath (SSK) was established in the year 2016 as a proprietorship firm by Mr. Sidharth Kamath. The firm is engaged in processing of raw cashew nut into cashew kernels. The firm procures raw material (raw cashew nuts) domestically from farmers and traders in the states Kerala, Karnataka, Goa and Andhra Pradesh. SAI MANASA: Ind-Ra Keeps BB- Bank Loan Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Sai Manasa Spintex (India) Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance 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 the rating. The rating will continue to appear as 'IND BB-/Negative (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR 112 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND BB-/Negative (ISSUER NOT COOPERATING) rating; -- INR 215.5 bil. Term loan maintained in non-cooperating category with IND BB-/Negative (ISSUER NOT COOPERATING) rating; and -- INR 15.2 mil. Non-Fund Based Working Capital Limit maintained in non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating. Company Profile Incorporated in 2009 by K Gopala Reddy and P Rama Rao, Andhra Pradesh-based Sai Manasa Spintex (India) manufactures cotton yarn from raw cotton. SALTEE BUILDCON: Ind-Ra Keeps BB Loan Rating in Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Saltee Buildcon Pvt Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance 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 the rating. The rating will continue to appear as 'IND BB/Negative (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating action is: -- INR 72.5 mil. Term loan maintained in non-cooperating category with IND BB/Negative (ISSUER NOT COOPERATING) rating. Company Profile Saltee Buildcon, established in 2007, is coming up with a studio apartment housing project in Rajarhat, Kolkata. SAMRAT WIRES: Ind-Ra Keeps B Bank Loan Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Samrat Wires Private Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance 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 the rating. The rating will continue to appear as 'IND B/Negative (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR 50 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND B/Negative/IND A4 (ISSUER NOT COOPERATING) rating; -- INR 30 mil. Non-Fund Based Working Capital Limit maintained in non-cooperating category with IND B/Negative/IND A4 (ISSUER NOT COOPERATING) rating; and -- INR 54 mil. Term loan due on Mar 31, 2021 maintained in non- cooperating category with IND B/Negative (ISSUER NOT COOPERATING) rating. Company Profile Established in 2010, SWPL manufactures wires at its state-of-the-art facility in Khopoli, Raigad (Maharashtra). SCHOLARS ACADEMY: CRISIL Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Scholars Academy Education Trust (SAET) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term 5 CRISIL D (Issuer Not Bank Loan Facility Cooperating) Term Loan 14 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SAET for obtaining information through letter and email dated September 11, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of SAET, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SAET is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SAET continues to be 'CRISIL D Issuer Not Cooperating'. SAET was founded on May 8, 2008, under the Indian Trust Act, 1882. It promotes Scholar's Institute of Technology and Management, an engineering college spread over a 10-acre campus in greater Guwahati. The promoter, Mr Sudip Lodh, is also the proprietor of Scholar's Academy, which is a coaching institute for engineering and medical exams since 1994. SHINE STAR: Ind-Ra Keeps BB- Bank Loan Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Shine Star’s instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance 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 the rating. The rating will continue to appear as 'IND BB-/Negative (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR 100 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND BB-/Negative (ISSUER NOT COOPERATING) rating; and -- INR 8.5 mil. Non-Fund Based Working Capital Limit maintained in non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating. Company Profile Incorporated in 1975, Shine Star is a partnership firm with a registered office in Mumbai. The firm imports, polishes and exports rock diamonds. It is managed by Mr. Vishal Shah and his family. SHREEVARI ENERGY: Ind-Ra Cuts Bank Loan Rating to BB- ----------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Shreevari Energy Systems Private Limited's (SESPL) ratings as follows: -- INR455 mil. Term loan due on August 2027 downgraded with IND BB-/Negative rating; and -- INR145 mil. Fund-based limit Long-term rating downgraded; Short-term rating affirmed with IND BB-/Negative/IND A4+ rating. The downgrade reflects a delay in the commissioning of SESPL's project with cost overruns, along with a decline in the scale of operations, resulting in deterioration in the liquidity and credit metrics, during FY23. The Negative Outlook indicates Ind-Ra's expectation of a continued poor liquidity position for the issuer during the medium term, unless there is a timely flow of support from the group and disbursement of additional fund-based limits. Ind-Ra also expects the company's revenue to be dependent on the successful execution of its order book. Key Rating Drivers The ratings factor in a delay in the commissioning of SESPL's windmill tower manufacturing unit, which was likely to be concluded by July 2022, but was deferred to November 2022 due to a lag in providing power supply by the government department. The overall cost of the project has also exceeded to INR1,350 million as against INR992.7 million, envisaged earlier. The said, the capex has been funded by a term loan of INR450 million, INR214.4 million from lease and the balance through capital infusion, funds from related parties. SESPL had already incurred around INR1,055.6 million of the total cost till FYE23. The balance INR80 million shall be incurred in FY24, majorly for hydraulic pre-bending machines, which shall increase the efficiency of the unit. The latter will be funded through a term loan of INR70 million and the balance through internal accrual. The windmill tower manufacturing unit is operating at a production capacity of 10 units per months. Post the commissioning of hydraulic pre-bending machines, the capacity shall increase to 15 units per months. The ability of the company to reach optimum utilization, thereby increasing the revenue and profitability, remains a key rating monitorable. The ratings also reflect SESPL's small scale of operations with its revenue declining to INR468 million in FY23 (FY22: INR608 million), due fewer orders received from Siemens Gamesa Renewable Energy, which is the major source of orders for wind mill tower components (80%-90%). SESPL is thus exposed to customer concentration risk. Although the windmill tower manufacturing unit was operational during FY23, it did not contribute to the revenue, thereby escalating the work-in -progress inventory at year end. The company achieved a revenue of INR300 million in 1HFY24 and had an order book of INR1,116 million at end-September 2023 to be executed within the next 12 months. It has also received a letter of intent from Siemens Gamesa Renewable Energy for windmill tower manufacturing. For FY24, Ind-Ra expects SESPL's revenue to improve, due to the likely completion of the capex incurred towards the windmill tower manufacturing unit with a total capacity of 180 windmill towers per year, backed by its order book. FY23 numbers are provisional in nature. Liquidity Indicator - Poor: SESPL's average maximum utilization of its fund-based limits was 100% in the 12 months ended September 2022, where the company has availed temporary overdraft frequently. It has a sanctioned fund-based limit of INR145 million, of which INR80 million has been disbursed while the balance shall be disbursed when the windmill manufacturing unit operates at optimum capacity. The cash flow from operations turned negative at INR125 million in FY23 (FY22: INR77 million), due to unfavorable changes in the working capital requirement. Furthermore, the free cash flow stood at negative INR358 million in FY23 (FY21: negative INR319 million), due to a major capex of around INR252 million in FY23 (FY22: INR 397 million). The net working capital cycle elongated to 301 days in FY23 (FY22: negative 26 days), majorly due to an increase in inventory days to 247 (32) due to the high-value windmill tower under WIP as against the shrunken scale. The cash and cash equivalents stood at INR0.7 million at FYE23 (FYE22: INR10 million). The promoters shall infuse INR200 million within FY24, as requisitioned by the sanction term for the capex term loan. SESPL does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. SESPL has repayment obligations of INR77 million and INR75 million for FY24 and FY25, respectively, which will be funded through internal accruals and capital infusion. The ratings also reflect SESPL's modest credit metrics in FY23 due to its increased borrowing and shrunken absolute EBITDA. The net leverage (adjusted net debt/operating EBITDAR) increased to 15.64x in FY23 (FY22: 7.44x), due to a rise in the borrowings to INR820 million (INR481 million). The interest coverage (operating EBITDA/gross interest expenses) deteriorated to 1.14x in FY23 (FY22: 1.84x), due to an increase in its finance cost to INR46 million (INR34 million). Ind-Ra expects the credit metrics to remain weak during FY24, due the debt-funded capex undertaken by the company. SESPL's EBITDA margin was modest at 11.19% in FY23 (FY23: 10.19%), with a return on capital employed of 4.4% (8.5%). The improvement in its EBITDA margin in FY23 was due to a decline in raw material prices. Ind-Ra expects the EBITDA margin to remain stable in FY24, with the integration of the new plant. However, the ratings are supported by the promoters' nearly two decades of experience in the renewable industry, leading to established relationships with customers and suppliers. Rating Sensitivities Negative: Stagnant scale of operations, or a further stretch in the liquidity or deterioration in the credit metrics with the interest coverage going below 1.1x will be a negative for the ratings. Positive: Timely liquidity support and ramping up of the windmill tower manufacturing capacity, leading to an improvement in the scale of operations and profitability, resulting in an improvement in the liquidity and the credit metrics will be a positive for the ratings. Company Profile Thuvakudy, Tamil Nadu-based SESPL was established in 2004 as a wholly owned subsidiary of NTC Holdings Private Limited. It has three operating units for manufacturing wind mill components and tools. The company has added a manufacturing unit for windmill tower in Tamil Nadu during FY23. SHRUTI TRAVELS: CRISIL Keeps D Debt Rating in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Shruti Travels (ST) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Working 2.7 CRISIL D (Issuer Not Capital Facility Cooperating) CRISIL Ratings has been consistently following up with ST for obtaining information through letter and email dated September 11, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of ST, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on ST is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of ST continues to be 'CRISIL D Issuer Not Cooperating'. ST was set up in 2000, in Indore, Madhya Pradesh, by Mr. Rajesh Shrivastava. The firm is engaged in car rental business to corporates. SREEVALSAM EDUCATIONAL: CRISIL Keeps D Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Sreevalsam Educational Trust (SET) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term 6.48 CRISIL D (Issuer Not Bank Loan Facility Cooperating) Term Loan 53.52 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SET for obtaining information through letter and email dated September 11, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of SET, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SET is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SET continues to be 'CRISIL D Issuer Not Cooperating'. Incorporated in 1990, SET undertakes engineering, procurement, and construction of fire protection systems such SET, based in Thrissur (Kerala), was set up in 2010, and is setting up a medical college, SIMS, in Edappal (Kerala). The institute will offer a five-year undergraduate course in medicine, and is likely to commence operations in 2017-18 (refers to financial year, April 1 to March 31). TERRA REALCON: CRISIL Keeps D Debt Rating in Not Cooperating ------------------------------------------------------------ CRISIL Ratings said the rating on bank facilities of Terra Realcon Private Limited (TRPL) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 10 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with TRPL for obtaining information through letter and email dated September 11, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of TRPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on TRPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of TRPL continues to be 'CRISIL D Issuer Not Cooperating'. Incorporated in 2007 and promoted by Mr Mahender Arora and Mr Sunil Chutani, TRPL develops real estate and is currently constructing a residential project, Terra Castle, in Bhiwadi, Rajasthan. VEER OVERSEAS: Ind-Ra Affirms BB+ Bank Loan Rating -------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Veer Overseas Limited's (VOL) bank facilities as follows: -- INR2.455 bil. Fund-based limit affirmed with IND BB+/Stable/ IND A4+ rating. Key Rating Drivers Liquidity Indicator - Stretched: VOL's average maximum utilization of the fund-based limits was around 75% for cash credit limits and 97% for packing credit for the 12 months ended August 2023. The cash flow from operations turned positive to INR52.8 million in FY23 (FY22: negative INR6.5 million), benefitting from improved scale and operating profitability combined with favorable working capital changes. The company does not have any significant long-term debt repayment obligations other than a vehicle loan repayment of INR0.40 million in FY24 and INR0.6 million in FY25. VOL does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. The company had an unencumbered cash balance of INR3.68 million at FYE23 (FYE22: INR21.25 million). Ind-Ra expects the cash flow from operations to improve further in the near term, due to a likely improvement in operating EBITDA. The working capital cycle remained elongated, although reduced to 155 days in FY23 (FY22: 203 days) on the back of a decline in the inventory holding period to 200 days (280 days) and receivable period to 20 days (26 days), partially offset by a reduction in the payable period to 65 days (104 days). The long inventory holding period was due to the seasonal nature of the product. The peak season for procuring paddy is October to December; thus, VOL procures 70%-75% of its paddy requirement to meet the demand. The remaining 25%-30% of paddy is procured in the non-peak season depending upon the demand. The rating continue to reflect VOL's modest EBITDA margin of 4%-6% over FY20-FY23 (FY23: 4.45%; FY22: 4.66%; FY21: 4.91%; FY20: 5.51%), with a return on capital employed of 11.1% in FY23 (FY22: 9.1%), due to low-value addition, high competition and the fluctuation in the raw material (paddy) prices, packaging material prices and shipping costs. Raw material costs account for 85%-90% of the company's cost of procuring paddy. The operating profitability remains susceptible to volatility in raw material prices, which essentially depends on the total agricultural output. As the company is engaged in the processing of the basmati rice, the fluctuation in the raw material prices is largely factored into the final output prices. The government's regulations related to the procurement policies also impact the raw material availability. Further, the margins remain at a similar level as the industry is marked by volumetric sales and the lack of significant value additions in the finished products. Ind-Ra expects the margins to remain at similar level in the near-to-medium term in line with the management's expectations owing to the similar nature of operations. The rating also factors in VOL's continued modest credit metrics. In FY23, the gross interest coverage (operating EBITDAR/gross interest expense) marginally reduced to 1.2x in FY23 (FY22: 1.25x) due to proportionately higher interest expenses. The interest expenses have been impacted due to a reduction in subvention benefits to 3% from 5% from April 1, 2022.However, the net leverage (net debt/operating EBITDA) improved to 6.9x in FY23 (FY22: 8.5x) on the back of a marginal reduction in the debt to INR2,475.9 million (INR2,538.1 million) and an improvement in EBITDA to INR357.9 million (INR296.4 million). Ind-Ra expects the credit metrics to remain at a similar level over the medium term, due to its nature of operations and the absence of major debt-funded capex plans. The rating also factors in the seasonal nature of the business, exposure to commodity risks and competition in the industry. Besides, VOL has a single product portfolio, i.e. basmati rice, which is sold in the domestic as well as export markets. In the domestic market, the company sells rice under different brands such as Veer, Dilshad and Sunlight based on the grade of rice, while it sells rice under private label in the export markets. The rice industry in India is characterized by intense competition, with the presence of a large number of organized and unorganized players, due to low-entry barriers such as low capital and low technical requirements of the business. As a result, the profitability in the rice processing business tends to be moderate. However, the company's strong connectivity to end markets helps it mitigate the risk to an extent. VOL's profitability remains vulnerable to a sudden and sharp volatility in raw material prices, especially paddy, which is highly dependent on monsoon, demand, currency fluctuation, acreage under cultivation and government regulations. The company mitigates the currency fluctuation risk by maintaining forward contract limits. However, the rating benefits from VOL's large scale of operations with revenue improving to INR8,036.5 million in FY23 (FY22: INR6,364.8 million, FY21: INR6,058.2 million) on account of increased sales, along with improved realizations. Exports accounted for 70.8% of the total revenue in FY23 (FY22: 67.9%). During FY23, the capacity utilization for milling and sorting, and packaging stood at 75.1% (FY22: 79%) and 89.31% (85.86%), respectively. During 1HFY24, the company booked revenue of INR3,558.8 million. Since India is the largest exporter of basmati rice, Ind-Ra expects the company's revenue growth to continue in the near-to-medium term, aided by an increase in export as well as domestic demand. The rating also remains supported by the promoters' over three decades of experience in the industry, leading to established relationships with customers and suppliers. Rating Sensitivities Negative: A substantial decline in the scale of operations, resulting in deterioration in the credit metrics with the interest coverage reducing below 1.15x and/or the weakening of the liquidity position, all on a sustained basis, could lead to a negative rating action. Positive: A substantial increase in the scale of operations, along with an improvement in the liquidity position and the credit metrics with the interest coverage exceeding 2.0x, all on a sustained basis, will lead to a positive rating action. Company Profile Incorporated in 1970, Haryana-based VOL is engaged in milling and processing of basmati rice. The company has 81,000 metric tons per annum of rice production capacity and 125,000 metric tons per annum of rice sorting and packaging capacity. VRUKSHA MICROFIN: Ind-Ra Hikes Loan Rating to BB, Outlook Stable ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has upgraded Vruksha Microfin Private Limited's (VMPL) bank loans to 'IND BB' from 'IND BB-'. The detailed rating action is: -- INR200 mil. Bank loans upgraded with IND BB/Stable rating. The upgrade reflects Ind-Ra's expectation of VMPL receiving continuous support from the promoter in terms of capital infusion and liquidity as demonstrated by an infusion of INR110 million in June2023 and an improvement in its funding profile. However, the rating remains constrained by VMPL's small scale of operations as indicated by assets under management of INR462.2 million in 1QFY24. Key Rating Drivers Adequate Capitalization for Current Scale of Operations: The promoters infused INR 110 million into VMPL in June 2023. The company's net worth improved to INR210 million at 1QFYE24 (FYE23: INR111 million) with leverage (debt/equity) of 1.7x in 1QFY24 (FY23: 2.2x, FY22: 1.3x). VMPL had adequate capitalization levels with tier 1 ratio of 34% at FYE23 (FYE22: 50.4%), although reduced, which will facilitate its near-term growth plans. The company disburses loans mainly for a tenure of 15 months in the first cycle. In FY23, the company disbursed loans worth INR0.03 million per borrower, which were repayable in 30 equal fortnightly instalments. The second loan cycle of INR0.04 million began in September 2022 and the company plans to disburse loans up to INR0.05 million per borrower. Since July 2022, VMPL has been disbursing newer loans at 24% interest rate against 19.69% earlier. As part of its near-term strategy, VMPL would attempt to raise borrowings and fund the growth in its assets under management. Ind-Ra expects the leverage to remain below 5.0x in the medium term, given the systemic risks that micro finance institution (MFIs) are subject to. Liquidity Indicator – Adequate: At FYE23, the company maintained a cumulative surplus of around 35% of its total assets in the up-to-one-year bucket. Despite stressing the inflows, the asset-liability statement remains adequate to meet obligations of up to one year. At 1HFYE24, the company had cash of INR90 million, against debt repayments of INR32 million over the next three months. Further, the liquidity is supported by unutilized bank lines of INR30 million. The management plans to maintain cash on balance sheet, equivalent to three months of debt servicing. Small Scale of Operations with Short Operational Track Record: VMPL had a loan book of INR453 million in 1QFY24 (FY23: INR344 million; FY22: INR188 million). The company finances small ticket loans to joint liability groups of women. Since VMPL began operating in August 2021, it has not seen any cycle so far and does not have a proven track record. At this stage of evolution, the scale plays an important role in factors such as operational efficiencies, concentration risks, and consistent, clear and scalable policies. However, considering the existing scale of operations, the company has adequate systems and processes in place to carry out its day-to-day operations. Ind-Ra expects the company to enhance its corporate governance standards with the formation of additional board committees and the appointment of additional members on the board. High Geographical Concentration: The company is exposed to high geographical concentration risk as all the 11 branches are located in Tamil Nadu. However, VMPL is looking to further expand in the neighboring southern states over the medium term. Ind-Ra believes a contiguous expansion would benefit the company, as non-contiguous expansion might present operational and control-related challenges. Moreover, while some of the directors have knowledge and experience related to the working of financial institutions, their experience in microfinance is evolving. However, their understanding of the local market and customer segments in Tamil Nadu has aided the company to control delinquencies, despite being concentrated in a few contiguous districts of a single state. Asset Quality to be Tested with Seasonality of Operations: VMPL's gross non-performing assets stood at 0.1% at FYE23 (FYE22: 0.2%) similar to those of its peers' with a comparable portfolio size in the microfinance segment. Ind-Ra opines the company's relatively smaller portfolio and area of operations compared to larger non-banking finance company (NBFC)-MFIs has provided better ability to control its portfolio quality. However, given that the operations are mainly related to unsecured microfinance loans, it continues to face systemic and idiosyncratic risks, given the vulnerable socio-economic profiles of its borrowers. Based on the industry track record, VMPL's gross non-performing assets may settle at higher levels on achieving of scale and seasoning of portfolio. Modest Profitability Profile: During FY23, the company reported a modest profit of INR16.95 million (FY22: 6.30 million, FY21: INR0.74million), with a return on average assets of 7.4% (3.19%, 1.4%). The profitability remained moderate due to continued high operating expenditure/assets of 12.5% during FY23 (FY22: 4%) and constrained spreads, resulting from regulators capping the interest rates at which the company can lend. The profitability is partly supported by the company's historically low credit costs of below 2%. With the scaling up of operations, Ind-Ra expects the profitability to improve modestly in FY24 while maintaining credit costs. Furthermore, the removal of the lending caps after the implementation of harmonization guidelines would contribute to its profitability and increase the viability of small-sized MFIs across India. It will also enable MFIs to transmit higher borrowing costs. Improving, although Evolving Funding Profile: The rating benefits from the company's evolving funding lines from banks and NBFC, along with the loans from the directors. The company started borrowing from November 2022 and was able to get funding of INR160 million from banks and NBFCs. It also received a sanction of INR70 million on September 7, 2023 from State Bank of India ('IND AAA'/Stable). The company was able to borrow INR139.6 million of funding in FY22, but majority of it was from the directors. Rating Sensitivities Negative: A significant deterioration in the asset quality and profitability metrics, leading to capital impairment and the leverage exceeding 5.0x, on a sustained basis, and inability to maintain adequate liquidity will lead to a negative rating action. Positive: A substantial increase in the scale of operations while reducing the geographical concentration, maintaining high level of asset quality performance on a sustained basis, and enhanced management strength, could lead to a positive rating action. Company Profile VMPL is a registered NBFC-MFI extending collateral-free micro-loans to group of women from low-income households under the joint liability model. It operates through 15 branches in seven districts of Tamil Nadu. ZEE ENTERTAINMENT: Leadership Dispute Stalls Sony Merger Talks -------------------------------------------------------------- Reuters, citing the Mint business daily, reports that talks of a merger between India's Zee Entertainment Enterprises and Japan's Sony's Indian arm have stalled after a clash on which company's top executive will run the merged entity. Reuters relates that Sony is pushing for its Indian operations managing director N.P. Singh to head the merged company, as Zee's candidate, managing director Punit Goenka faces an on-going investigation, the report said, citing people aware of the matter. An Indian tribunal last month lifted a ban on Goenka holding board positions in Zee Group companies, but said that he will have to cooperate with any investigation by India's markets regulator, Reuters recalls. According to Reuters, the Securities and Exchange Board of India (SEBI) had in June alleged that Goenka and Zee Group Chairman Subhash Chandra were actively involved in diverting company funds. Both Goenka and Chandra have denied any wrongdoing. A failure to reach an agreement on leadership by Dec. 21 may derail the merger, the Mint report said, Reuters relays. In September, Sony had announced a delay in the merger, saying it expected completion "within the next few months". About Zee Entertainment Based in Mumbai, India, Zee Entertainment Enterprises Limited, together with its subsidiaries, engages in broadcasting satellite television channels. As reported in the Troubled Company Reporter-Asia Pacific in early September 2023, the National Company Law Appellate Tribunal (NCLAT) on Aug. 31 issued notice to Zee Entertainment Enterprises Ltd (ZEEL) in a plea by IDBI Bank to initiate insolvency proceedings against the company. According to Hindu BusinessLine, IDBI Bank, in its plea, said it was unable to recover unpaid dues of around INR150 crore from Zee. Many banks, including IndusInd, Standard Chartered, Axis Bank and IDBI, have initiated insolvency proceedings against Zee ahead of its merger with Sony. So far, Zee has reached a settlement with IndusInd and Standard Chartered. ===================== N E W Z E A L A N D ===================== 9TH ENTERTAINMENT: Creditors' Proofs of Debt Due on Jan. 12 ----------------------------------------------------------- Creditors of 9TH Entertainment Limited are required to file their proofs of debt by Jan. 12, 2024, to be included in the company's dividend distribution. The High Court at Auckland appointed Benjamin Francis and Garry Whimp of Blacklock Rose as liquidators on Nov. 3, 2023. AGILITY CONSTRUCTION: Creditors' Proofs of Debt Due on Dec. 6 ------------------------------------------------------------- Creditors of Agility Construction Limited are required to file their proofs of debt by Dec. 6, 2023, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Nov. 6, 2023. The company's liquidators are: Adam Botterill Damien Grant Waterstone Insolvency PO Box 352 Auckland 1140 BEERTIQUE NZ: Grant Bruce Reynolds Appointed as Liquidator ---------------------------------------------------------- Grant Bruce Reynolds of Reynolds & Associates on Nov. 3, 2023, was appointed as liquidator of Beertique NZ Limited. The liquidator may be reached at: PO Box 259059 Botany Auckland 2163 BLUESTONE NZ 2021-1: S&P Affirms B (sf) Rating on Class F Notes --------------------------------------------------------------- S&P Global Ratings affirmed its ratings on seven classes of notes issued by New Zealand Guardian Trust Co. Ltd. as trustee for Bluestone NZ Prime 2021-1 Trust. The rating actions reflect S&P's view of the credit support available, which is sufficient to withstand the stresses it applies. Credit support comprises note subordination for all rated notes, which has increased compared with what it was on closing, and excess spread, if any. The asset pool has continued to amortize, which as of Aug. 31, 2023, has a pool factor of 40.4%. There are currently no loans more than 30 days in arrears and there have been no losses to date. The portfolio has generally strengthened, with a weighted-average loan seasoning of 30.2 months and a current weighted-average loan-to-value ratio of 68.8%. These positive factors have been partly offset by an increase in borrower concentrations. S&P said, "Our ratings are limited by the increasing borrower concentrations in the pool and the risk that it poses as the pool continues to amortize. As of Aug. 31, 2023, the 10 largest borrowers in the portfolio each comprise more than 1% of the pool and in aggregate make up around 14.7% of the total pool balance. The potential for tail-end risks increases as the pool shrinks, with the subordinated note classes being more susceptible to potential losses. We have assessed pool concentrations by applying an additional minimum loss projection when determining the expected loss for the pool. The expected loss for the pool is the higher of the additional minimum loss projection and the number sized when applying our standard credit analysis, as per our "Australian RMBS Rating Methodology And Assumptions" criteria, published Sept. 1, 2011. "The rated classes of notes are currently paying on a sequential basis; however, we expect it to meet the trigger for the second anniversary since closing date in the coming months. Once all performance triggers are met, the transaction will switch to pro-rata paydown. "Our expectation is that the various mechanisms to support liquidity within the transaction, including principal draws, and an amortizing liquidity facility are sufficient to ensure timely payment of interest." Ratings Affirmed Bluestone NZ Prime 2021-1 Trust Class A1: AAA (sf) Class A2: AAA (sf) Class B: AA (sf) Class C: A (sf) Class D: BBB (sf) Class E: BB (sf) Class F: B (sf) COASTLINE INTERIOR: Court to Hear Wind-Up Petition on Dec. 1 ------------------------------------------------------------ A petition to wind up the operations of Coastline Interior Linings Limited will be heard before the High Court at New Plymouth on Dec. 1, 2023, at 2:15 p.m. The Commissioner of Inland Revenue filed the petition against the company on Oct. 6, 2023. The Petitioner's solicitor is: Charles Walmsley Inland Revenue, Legal Services 21 Home Straight PO Box 432 Hamilton QUITE USEFUL: Court to Hear Wind-Up Petition on Dec. 14 ------------------------------------------------------- A petition to wind up the operations of Quite Useful Company Limited will be heard before the High Court at Palmerston North on Dec. 14, 2023, at 10:00 a.m. Helene Stock filed the petition against the company on Sept. 26, 2023. The Petitioner's solicitor is: Francis Twiss 248 Broadway Marton ================= S I N G A P O R E ================= 818 DURIANS: Court Enters Wind-Up Order --------------------------------------- The High Court of Singapore entered an order on Nov. 3, 2023, to wind up the operations of 818 Durians & Pastries Pte. Ltd. Maybank Singapore Limited filed the petition against the company. The company's liquidators are: BDO Advisory Pte Ltd 600 North Bridge Road #23-01 Parkview Square Singapore 188778 DIANA GROUP: Creditors' Proofs of Debt Due on Dec. 8 ---------------------------------------------------- Creditors of Diana Group Pte. Ltd. are required to file their proofs of debt by Dec. 8, 2023, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Nov. 6, 2023. The company's liquidators are: Lim Seow Hwa 12 Tannery Road #10-01, HB Centre 1 Singapore 347722 ENG CHOON: Court to Hear Wind-Up Petition on Nov. 24 ---------------------------------------------------- A petition to wind up the operations of Eng Choon Enterprise Pte Ltd will be heard before the High Court of Singapore on Nov. 24, 2023, at 10:00 a.m. Maybank Singapore Limited filed the petition against the company on Nov. 3, 2023. The Petitioner's solicitors are: M/s Advent Law Corporation 111 North Bridge Road #25-03 Peninsula Plaza Singapore 179098 HODLNAUT TRADING: Singapore High Court Enters Wind Up Order ----------------------------------------------------------- CoinDesk reports that Singapore-based cryptocurrency lender Hodlnaut will be liquidated, according to the company's former interim judicial managers, Aaron Lee and Angela Ee. A winding-up order was filed on Nov. 10 with the High Court of Singapore. Liquidators will continue to provide updates to the exchange's creditors, of which there are more than 17,000. Hodlnaut applied for creditor protection last August after suffering around $189 million in losses due to the Terra ecosystem exposure, which collapsed in May 2022. The lender also had $13.3 million worth of crypto locked on FTX before the exchange froze withdrawals and ultimately filed for bankruptcy last November. CoinDesk notes that Holdnaut creditors rejected a restructuring plan earlier this year, favoring liquidation as it would better serve their interests. Aaron Lee and Angela Ee have now been appointed as liquidators of Hodlnaut, which will be wound up under the Insolvency, Restructuring and Dissolution Act of 2018, CoinDesk discloses. The winding-up application was filed in May this year and approved on Nov. 10. About Hodlnaut Trading Hodlnaut Trading Limited -- https://www.hodlnaut.com/ -- is a Singapore-based platform that provides innovative financial services for individual investors who can earn interest on their cryptocurrencies. As reported in the Troubled Company Reporter-Asia Pacific on Sept. 6, 2022, the Singapore High Court granted judicial management to Hodlnaut, giving the struggling crypto lender additional breathing space to come up with a recovery plan. According to Bloomberg, Justice Aedit Abdullah approved Angela Ee and Aaron Loh of EY Corporate Advisors Pte as the interim judicial managers, Hodlnaut said in a statement on its website on Aug. 30. In an earlier application, Hodlnaut had proposed Tam Chee Chong of Kairos Corporate Advisory Ltd. as the interim judicial manager. The court announced the decision on Aug. 29, Hodlnaut added. The TCR-AP reported in late January 2023 that key creditors of Hodlnaut rejected a proposed restructuring plan and prefer to liquidate the company. They said their interests are best served by winding the firm up, according to a Jan. 11 filing by Hodlnaut's court-appointed interim judicial managers seen by Bloomberg News. VANDA LOGISTICS: Creditors' Proofs of Debt Due on Dec. 9 -------------------------------------------------------- Creditors of Vanda Logistics Pte. Ltd. are required to file their proofs of debt by Dec. 9, 2023, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Nov. 7, 2023. The company's liquidator is Tan Chin Ren of Chan & Partners. VIVA CAPITAL: Court Enters Wind-Up Order ---------------------------------------- The High Court of Singapore entered an order on Oct. 31, 2023, to wind up the operations of Viva Capital (SG) Pte. Ltd. 61 Robinson Pte. Ltd. filed the petition against the company. The company's liquidators are: Matthew Stuart Becker Lim Loo Khoon Deloitte & Touche LLP 6 Shenton Way OUE Downtown 2 #33-00 Singapore 068809 ================= S R I L A N K A ================= HELA APPAREL: Fitch Cuts Nat'l. LT IDR to 'BB+(lka),' Outlook Neg. ------------------------------------------------------------------ Fitch Ratings has downgraded Sri-Lanka based Hela Apparel Holdings PLC's National Long-Term Rating to 'BB+(lka)', from 'AA-(lka)'. The Outlook is Negative. The downgrade follows the sharp deterioration in Hela's financial profile following the apparel manufacturer's significant adjustment of financial accounts from the interim accounts during its annual audit for the financial year ended March 2023 (FY23). Hela reported additional operating costs of more than USD6 million, leading to a nearly 80% reduction in EBIT, and higher finance costs of more than USD1.6 million, cutting EBITDA interest cover to 0.3x, from 0.8x. The Negative Outlook reflects its expectation that interest coverage will stay weak in the next 12 months, leading to continued strain on liquidity. Fitch expects Hela to continue to make EBITDA losses in the next 12 months, leaving the company entirely reliant on the success of its turnaround strategy and the support of external lenders. KEY RATING DRIVERS Significant Financial Statement Adjustments: Fitch believes Hela's financial transparency has weakened after the major adjustment of its annual financial accounts from its FY23 external audit. Hela says that during its migration to a new enterprise resource planning system in April 2023, the management identified an overstatement of raw material costs in work in progress, which resulted in a large inventory write down of around USD5 million for FY23, but that its internal controls have improved since. Weak Cash Flow Generation: Fitch expects fund flow from operations (FFO) to remain negative in FY24-FY26 (FY23: negative USD14 million), as the pace of recovery in Hela's EBITDA in the next few years is unlikely to be sufficient to cover interest costs. This is underpinned by its belief that demand for apparel imports into the US and the EU - Hela's key markets - is likely to remain weak as elevated inflation and interest rates pressure consumer purchasing power. The company has embarked on a cost saving strategy, but execution risks are high. Tight Liquidity: Hela had USD15 million in cash on hand at end-June 2023, against an estimated USD16 million in interest payment due in the 12 months, which the company is unlikely to meet. It has a further USD5 million in maturing term debt during the period and over USD70 million in short-term working capital lines falling due. Hela expects lenders will be supportive of rolling-over its maturing working capital debt and allow it to drawdown a further USD72 million in undrawn and uncommitted credit lines. However, challenges in improving its EBITDA could weaken lender access. That said, the company demonstrated its ability to raise funds as recently as 1QFY24; raising USD14 million from new lenders Norfund, a Norwegian investment fund, and USD5 million from Aavishkar Capital, an India-based venture capital firm. Uncertain Demand Environment: Fitch forecasts Hela's revenue to decline by more than 20% in FY24 (1Q24: -26%), following weak demand from its key markets in the US and Europe due to elevated inflation and interest rates. The regions contributed 58% and 38%, respectively, to Hela's revenue in 1Q24. Fitch expects revenue to improve by 5% in FY25, in line with its global economic outlook for easing inflation and moderating interest rates in the US and Eurozone in 2024-2025. Heightened Strategy Execution Risk: Hela is undertaking a strategy to cut overhead costs that is subject to execution risk. It is switching to single shift operations in major factories, from double shifts; enhancing the supply-chain strategy by reducing lead times, and rationalising selling general & administrative costs. Hela scaled up its operation over FY22-FY23 to cater to heightened demand, but if the current period of weak demand persists, it may decide to scale down to secure its margin and maintain its long-term business profile. High Leverage: Fitch forecasts leverage to remain above 10x in FY24-FY26 (FY23: 24x), as Hela resorts to external financing for its operational requirements and debt servicing in the next 12-18 months amid limited internal cash generation. There company does not have major investment needs in FY24-FY26, as Fitch forecasts capex of around USD2.5 million-3.5 million for maintenance, subject to funding access. The need for working capital will also be limited considering the weak sales. Small Scale; Long-Term Customer Relationship: Hela business scale is small relative to larger apparel manufacturers, with EBITDA of less than USD15 million. Its product segments are in intimate wear (1Q24 revenue contribution: 54%), kids wear (23%) and active wear (24%). The company's strategy is careful customer selection and a focus on building long-term and profitable customer relationships, which include some of the world's leading apparel brands. The top-10 customers generated an average of 80% of Hela's total revenue in FY20-FY23 (1Q24: 83%). DERIVATION SUMMARY Hela's rating is two notches below Sri Lanka-based power producer, Resus Energy PLC (BBB(lka)/Negative). Resus faces heightened liquidity risk due to a deterioration in the credit profile of its sole counterparty, Ceylon Electricity Board (CEB, BB+(Ika)/Stable). However, positive developments at CEB, including raised electricity tariffs, have resulted in higher payments to Resus, bringing down its receivable months to 10, from 13 in FYE23. Consequently, Fitch expects Resus's interest coverage to remain adequate at around 1.3x-1.6x in the next one to two years, compared with Hela's inability to meet its interest costs from internally generated funds. Hela's rating is three notches above that of Kotagala Plantations PLC (B+(lka)/Negative). Kotagala faces weak liquidity and high credit risk due to limited funding access, volatile operating cash flow and limited medium-term prospects stemming from the inherent weaknesses in its tea and rubber plantation businesses. The company still faces challenges in securing adequate credit lines to fund its operation, despite its recent debt restructuring. KEY ASSUMPTIONS Its key assumptions for Hela's rating case are: - Demand to continue to weaken in FY24, translating into a more than 20% drop in sales (1Q24: 26% drop), then slowly improving by 5% in FY25. - EBITDA loss in FY24 as a result of lower sales generation and higher administrative expense. - No investment capex in FY24-FY26, only maintenance capex of USD2.5 million-3.5 million a year - Working capital inflow of around USD24 million on falling revenue - Interest rate on the new US dollar debt at around 11%-12% for FY24-FY26. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: - Successful strategy execution to improve profitability, reflected in sustained positive fund flow from operations, could lead to the Outlook being revised to Stable. Factors that could, individually or collectively, lead to negative rating action/downgrade: - Weakening of liquidity, as indicated by an inability to access additional external funding or renew current bank facilities. LIQUIDITY AND DEBT STRUCTURE Weak liquidity, Funding Risks: Hela's liquidity is weak. The company is likely to remain reliant on cash on hand and undrawn, but uncommitted, credit lines to fund its operating losses and interest payments. Its ability to access undrawn lines hinges on the success of its turnaround strategy to cut costs and improve cash flow, but Fitch believes this carries high execution risks. ISSUER PROFILE Hela is an apparel manufacturer with diversified operations in Sri Lanka, Kenya, Ethiopia and Egypt. Its key products, including intimate, kids, and active wear, are mainly sold to global luxury and lifestyle brands and European retailers. Entity/Debt Rating Prior ----------- ------ ----- Hela Apparel Holdings PLC Natl LT BB+(lka) Downgrade AA-(lka) =========== T A I W A N =========== CONCORD SECURITIES: Fitch Affirms BB+ LongTerm IDR, Outlook Stable ------------------------------------------------------------------ Fitch Ratings has affirmed Taiwan-based Concord Securities Co., Ltd.'s Long-Term Issuer Default Rating (IDR) at 'BB+' and National Long-Term Rating at 'A-(twn)'. The Outlook on both ratings is Stable. Fitch has also affirmed Short-Term IDR at 'B' and the National Short-Term Rating at 'F2(twn)'. KEY RATING DRIVERS Moderate Franchise: Concord Securities' ratings are underpinned by the company's moderate but steady franchise in Taiwan's stockbroking sector, together with an adequate capital profile. The ratings also reflect the company's business model, which depends on more volatile capital-market activities, compared with other larger and more diversified financial institutions in Taiwan. Stable Operating Environment: Fitch expects Taiwan's resilient economy and prudent regulatory oversight to underpin stable operating conditions for the securities industry, despite global economic headwinds and capital market volatility. Stable interest rates and investor interest in technology-sector securities led to a 15% increase in equity-market average daily turnover in 9M23 from the level in 2022. Capital-market activity also recovered during the year, with a pick-up in corporate bond issuance that more than offset weakness in equity financing. Fitch expects further improvements in corporate financing demand, as Fitch expects Taiwan's GDP growth to accelerate to 2.8% in 2024 from 1.0% in 2023, although equity-market turnover will depend on investor sentiment. Variable Return Profile: Concord Securities' earnings recovered in 1H23. Its annualised operating profit/ average equity rebounded to 21.7%, from -2.3% in 2022, due to better trading income. The slowdown in US interest-rate hikes and buoyant investor interest in technology securities in 1H23 supported better capital-market sentiment and the company's trading performance. Fitch expects Concord Securities' return profile to remain volatile in the medium term, like that of peers. A global economic slowdown and sustained geopolitical tension will continue to weigh on capital-market performance in 2024, although a tapering in the US interest-rate hike cycle could support the performance of fixed-income portfolio investments. Adequate Capitalisation: Fitch expects Concord Securities to maintain an adequate capital buffer despite a modest absolute capital base. Its net tangible leverage of 4.2x at end-1H23 was slightly up from 3.9x at end-2022, due mainly to higher settlement-related assets and a larger investment position amid better capital-market sentiment in 1H23. Nonetheless, regulatory capital requirements in Taiwan should help ensure that securities firms hold sufficient capital against potential market shocks. Reliance on Wholesale Funding: Concord Securities is exposed to funding market volatility, like industry peers, due to its reliance on wholesale funding and use of repos for short-term funding towards its bond investments. Concord Securities manages the associated risks by maintaining adequate underlying collateral against the repo transactions, mainly in government, financial institution and corporate bonds with adequate credit quality. It also maintains sufficient liquid assets to cover short-term repayment needs. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Concord Securities' ratings would face downward pressure if intense market competition leads to a sustained deterioration in its market position, or if its business growth starts to entail greater risk-taking or weakens its capital, funding or liquidity buffers materially. The ratings are sensitive to an increased appetite for risk, in particular, higher balance-sheet exposure to market risk or greater revenue sensitivity from trading activities. Operational or risk-management lapses that result in unexpected substantial losses and place pressure on the capital position would also be credit negative. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A rating upgrade is less likely in light of Concord Securities' moderate franchise relative to local competitors. Still, a significant improvement in business diversity and earnings quality - such as increased earnings contribution from segments with more stable and recurring income streams - would be positive for the ratings. ADJUSTMENTS The capitalisation and leverage score has been assigned below the implied score for the following adjustment reason: size of capital base (negative). The funding, liquidity and coverage score has been assigned below the implied score for the following adjustment reason: funding flexibility (negative). ESG CONSIDERATIONS The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Concord Securities Co., Ltd. LT IDR BB+ Affirmed BB+ ST IDR B Affirmed B Natl LT A-(twn) Affirmed A-(twn) Natl ST F2(twn) Affirmed F2(twn) ORIENTAL SECURITIES: Fitch Alters Outlook on 'BB+' LT IDR to Neg. ----------------------------------------------------------------- Fitch Ratings has revised the Outlooks on Oriental Securities Corporation's 'BB+' Long-Term Issuer Default Rating (IDR) and 'A-(twn)' National Long-Term Rating to Negative, from Stable, and affirmed the ratings. Fitch has also affirmed the Short-Term IDR of 'B' and National Short-Term Rating of 'F1(twn)'. The Outlook revision reflects the increasing challenges for Oriental Securities to maintain its market position, in the face of rising market competition from securities subsidiaries of large financial holding companies. The Outlook also takes into consideration that a TWD3 billion capital reduction in September 2023 would reduce the company's capital and liquidity buffer to withstand substantial and unexpected market shocks. KEY RATING DRIVERS Rising Competition Pressures the Profile: Oriental Securities' ratings mainly stem from its moderate company profile, as denoted by a modest share of domestic brokerage volume and other capital-market activity, and a business model that concentrates on volatile brokerage and proprietary trading income. The ratings also take into consideration the company's lower risk appetite compared with other standalone securities companies of similar size, as well as franchise benefits from its name association with the Far Eastern Group. Nonetheless, its share of brokerage activity has declined in recent years, and Fitch believes Oriental Securities will face growing challenges in maintaining its market position amid intensifying market competition. This drives the revision in the rating Outlook to Negative. Stable Operating Environment: Fitch expects Taiwan's resilient economy and prudent regulatory oversight to underpin stable operating conditions for the securities industry, despite global economic headwinds and capital market volatility. Stable interest rates and investor interest in technology-sector securities led to a 15% increase in equity-market average daily turnover in 9M23 from the level in 2022. Capital-market activity also recovered during the year, with a pick-up in corporate bond issuance that more than offset weakness in equity financing. Fitch expects further improvements in corporate financing demand, as Fitch expects Taiwan's GDP growth to accelerate to 2.8% in 2024 from 1.0% in 2023, although equity-market turnover will depend on investor sentiment. Variable Return Profile: Oriental Securities' earnings recovered in 1H23, with its annualised operating profit/average equity rising to 2.5%, from -4.8% in 2022, due to better trading income. That said, Fitch expects Oriental Securities' return profile to remain volatile in the medium term, like that of peers. A global economic slowdown and sustained geopolitical tension will continue to weigh on capital-market performance in 2024, although a tapering in the US interest-rate hike cycle could support the performance of fixed-income portfolio investments. Reduced Capital and Liquidity Buffer: Oriental returned TWD3 billion in capital to shareholders in September 2023, which reduced its equity base to TWD6.8 billion from TWD9.8 billion. Leverage remains moderate in absolute terms, and Fitch calculates that Oriental's net adjusted leverage of 2.9x after the capital return is an adequate buffer against balance-sheet risks (end-1H23: 2.3x). Even so, the capital return reduces the company's capital buffer. Adequate Liquidity Coverage: Fitch expects Oriental Securities to maintain a stable funding and liquidity profile with sufficient short-term liquidity coverage. The recent capital return reduces the pool of equity capital available to fund future balance-sheet activities, but the company has prepared additional credit facilities to meet its future liquidity needs. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Oriental Securities' ratings may be downgraded if the company is unable to restore it market position to pre-Covid-19 pandemic levels while maintaining a steady risk appetite and financial profile. The ratings are sensitive to an increased appetite for risk, in particular, higher balance-sheet exposure to market risk or greater revenue sensitivity from trading activities. Operational or risk-management lapses that result in unexpected substantial losses and place pressure on the capital position would also be credit negative. In addition, Oriental Securities' ratings would be downgraded if Fitch perceives declining links with the Far Eastern Group, for instance if the major shareholder meaningfully reduces its stake in the company or if it no longer channels its capital market-related activities through the securities company. The National Short-Term Rating would be downgraded if the National Long-Term Rating is downgraded to 'BBB+(twn)'. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Rating upgrades for Oriental Securities is less likely in light of its modest franchises. Still, improved business diversity and earnings quality - such as increased earnings contribution from segments with more stable and recurring income streams - would be positive for the ratings. ADJUSTMENTS The business profile score has been assigned above the implied score for the following adjustment reasons: business model (positive), group benefits and risks (positive). The earnings and profitability score has been assigned above the implied score for the following adjustment reasons: portfolio risk (positive), historical and future metrics (positive). The capitalisation and leverage score has been assigned below the implied score for the following adjustment reason: size of capital base (negative). ESG CONSIDERATIONS The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or to the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Oriental Securities Corporation LT IDR BB+ Affirmed BB+ ST IDR B Affirmed B Natl LT A-(twn) Affirmed A-(twn) Natl ST F1(twn) Affirmed F1(twn) ============= V I E T N A M ============= VIETNAM BANK FOR AGRICULTURE: Fitch Rates LongTerm FC IDR at 'BB' ------------------------------------------------------------------ Fitch Ratings has assigned Vietnam Bank for Agriculture and Rural Development (Agribank) a Long-Term Foreign-Currency Issuer Default Rating (IDR) of 'BB' and Government Support Rating of 'bb'. The Outlook on the IDR is Positive, mirroring that of the Vietnam sovereign rating of 'BB'. Fitch has simultaneously assigned the bank a Viability Rating (VR) of 'b'. KEY RATING DRIVERS State Support Drives Ratings: Agribank's Long-Term IDR is driven by its expectation of sovereign support to the bank, in times of need, as indicated by its GSR. The ratings are equalised with that of the sovereign, reflecting its view of the state's strong propensity to support Agribank if needed, in light of its high systemic importance as the largest and wholly state-owned bank in Vietnam, and its strategic role in supporting the agriculture and rural sectors. Agribank is among the most systemically important banks in Vietnam, with around 14% share of system deposits. Its strategic importance to the state is bolstered by its role in supporting the agriculture and rural sectors, where the bank consistently commands more than 40% market share. Capitalisation Constrains VR: The bank's VR is constrained by its thin capitalisation, and it is one notch below the implied VR. Agribank's Fitch Core Capital ratio of 5.9% at June 2023 is low relative to peers' and risks in the operating environment. Nevertheless, Fitch expects the ratio to gradually improve over the next 12-18 months, due to its improved capital generation and a VND17 trillion capital infusion from the state. The VR also takes into consideration its entrenched funding franchise and improving profitability in recent years, helped by ongoing restructuring efforts to improve productivity and resolve legacy asset-quality issues. Economy Slows; Poised to Recover: Vietnam's GDP growth slowed to 4.3% in 9M23 amid weak external demand and lingering headwinds in the domestic property sector. However, domestic fiscal and monetary policies have pivoted to provide growing support to the economy and Fitch expects economic growth to accelerate to 6.3% in 2024 and 7.0% in 2025. The economy's medium-term fundamentals remain favourable and sustained economic expansion make for positive business prospects in the banking sector. This underpins the banking sector operating environment score of 'bb-/positive'. Write-Offs Aid Asset-Quality Metrics: Agribank's asset quality score of 'b'/stable reflects its higher non-performing loan (NPL) and write-off ratios relative to its local rated peers' average over the course of credit cycles. This is partly due to its higher exposure towards riskier borrowers in the rural areas, in its view. The NPL ratio rose to 2.1% by end-June 2023 (1.8% at end-2022) amid the economic slowdown in 1H23, but Fitch expects asset quality to stabilise in the near term with further write-offs and as the economy recovers. Profitability Boosted by Writebacks: Gains on recovery of written-off debts have been a material contributor to the bank's operating profit in recent years, and Fitch expects the proportion to remain substantial as it continues asset recovery efforts. The bank's risk-adjusted profitability is likely to improve modestly in 2024 on improving operational efficiency and recovering margins as funding costs decline and loans under temporary interest-rate reprieve are repriced back to market rates. State Linkages Support Funding: Agribank's loan/deposit ratio of 86% at June 2023 is the lowest among its local rated peers, and reflects its relatively liquid balance sheet. It has low deposit concentration, with retail deposits consistently making up more than 70% of its total, thanks in large part to its wide distribution network and strong state linkages. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade IDR and GSR The IDR and GSR are sensitive to Vietnam's sovereign rating and the Outlook on the IDR is likely to mirror that on the sovereign rating. Fitch may takes negative rating action on the GSR and the IDR if Fitch perceives the state's propensity to support Agribank as diminishing materially, such as if the bank were to have much lower systemic importance or ceases to be majority state-owned, neither of which Fitch considers likely in the near term. VR A decline in Agribank's Fitch Core Capital ratio to 5% (end-2Q23: 5.9%) or its local capital ratios to close to the regulatory minimum is likely to lead to a downgrade of the VR to 'b-', especially if there were no meaningful improvements in other financial profile scores. A material deterioration in its risk profile, which could be reflected in excessively rapid growth or a major shift to higher-risk borrowers, in tandem with significantly worse asset-quality metrics, may also pressure the VR. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade IDR and GSR An upgrade of Vietnam's sovereign rating is likely to lead to a corresponding upgrade of the GSR and IDR, provided the state's propensity to support Agribank is unchanged. VR The VR is constrained by low capitalisation and it may be upgraded if its Fitch Core Capital ratio rises to and stays around 8% on a sustained basis. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS Fitch has assigned Agribank a Long-Term IDR (xgs) of 'B(xgs)' and Short-Term IDR (xgs) of 'B(xgs)'. The bank's Long-Term IDR (xgs) excludes assumption of government support from its underlying rating and is, therefore, driven by its VR. The Short-Term IDR (xgs) is assigned in accordance with its Long-Term IDR (xgs) and the short-term rating mapping outlined in Fitch's criteria. OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: The bank's Long-Term IDR (xgs) could be downgraded if the VR is downgraded. The bank's Short-Term IDR (xgs) could be downgraded if the VR is downgraded by two notches or more, to below 'b-'. Factors that could, individually or collectively, lead to positive rating action/downgrade: The bank's Long-Term IDR (xgs) could be upgraded if the VR is upgraded. The bank's Short-Term IDR (xgs) could be upgraded if the VR is upgraded to above 'bb+'. VR ADJUSTMENTS The VR has been assigned below the implied VR due to the following adjustment reason: weakest link - capitalisation and leverage (negative) The OE score has been assigned above the implied score due to the following adjustment reason: economic performance (positive) The asset quality score has been assigned below the implied score due to the following adjustment reason: underwriting standards and growth (negative) The earnings and profitability score has been assigned below the implied score due to the following adjustment reason: risk-weight calculation (negative) PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS Agribank's ratings are linked to Vietnam sovereign ratings. ESG CONSIDERATIONS Agribank has an ESG Relevance Score of '4' for Governance Structure due to the significant influence of the state in the bank's strategic objectives and a potential lack of effective independent board oversight that could weaken the protection of creditor and stakeholder rights. This has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. The bank's strong state linkages are also factored into its assessment of the likelihood of state support, which drives its GSR and Long-Term IDR. The ESG Relevance Score for Exposure to Environmental Impacts is '3', which is higher than the sector default score of '2', because of the bank's enlarged exposure to Vietnam's agricultural sector, which is subject to long-term physical risks arising from climate change. This does not currently have a material impact on the bank's credit rating, but is a relevant risks factor with potential influence on the bank's business profile, risk profile and asset quality performance in the future. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Vietnam Bank for Agriculture and Rural Development LT IDR BB New Rating WD ST IDR B New Rating WD Viability b New Rating WD Government Support bb New Rating LT IDR (xgs) B(xgs) New Rating ST IDR (xgs) B(xgs) New Rating ********* 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 ***