/raid1/www/Hosts/bankrupt/TCRAP_Public/231213.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
Wednesday, December 13, 2023, Vol. 26, No. 249
Headlines
A U S T R A L I A
BODY CATALYST: Goes Into Administration; Dec. 19 First Meeting Set
CONTINENTAL COAL: Former Director Peter Landau Gets Jail Sentence
DAICOM AUSTRALIA: Second Creditors' Meeting Set for Dec. 15
LIDDLE SHEARING: First Creditors' Meeting Set for Dec. 19
PLENTI PL 2023-1: Moody's Upgrades Rating on Class F Notes to Ba3
SMILESTYLER SOLUTIONS: First Creditors' Meeting Set for Dec. 15
UNIVERSITY CHILD: First Creditors' Meeting Set for Dec. 19
W. HUTCHISON: First Creditors' Meeting Set for Dec. 19
C H I N A
COUNTRY GARDEN: Set to Avoid Yuan Bond Default After Holder Deal
DALIAN WANDA: Reaches Deal With Pre-IPO Creditors
I N D I A
AGROW FOODS: CARE Keeps D Debt Rating in Not Cooperating Category
BALAJI ROADLINES: CRISIL Withdraws B Rating on INR5ccr LT Loan
BALAJI WOOLLEN: CARE Lowers Rating on INR4.53cr LT Loan to B-
DHANRAJ COTTON: CARE Lowers Rating on INR12cr LT Loan to B-
EASTSTAR MANUFACTURING: CARE Keeps B- Rating in Not Cooperating
GANESH EDUCATION: CARE Keeps D Debt Rating in Not Cooperating
GIRNA INFRAPROJECTS: CRISIL Lowers Long/Short Term Rating to D
GOLDEN FOOD: CARE Keeps B- Debt Rating in Not Cooperating
GOLDEN SPINNING: CARE Lowers Rating on INR8.41cr Loan to B+
IKAT EXPORTS: ICRA Reaffirms B+ Rating on INR17.50cr NCD
INDIA: Pre-pack Scheme Under IBC Likely for Large Companies Too
ITI LIMITED: ICRA Lowers Rating on INR2,445cr Cash Loan to D
J S V MOTORS: CARE Lowers Rating on INR114.24cr LT Loan to B+
KRISHNA LILA: CARE Assigns B+ Rating to INR28.71cr LT Loan
LORD SHIVA: CARE Keeps D Debt Rating in Not Cooperating Category
LUCKY MINERALS: CARE Keeps B- Debt Ratings in Not Cooperating
MADHYA PRADESH: CARE Lowers Rating on INR1,300cr LT Loan to C
MAHATMA JYOTIBA: CARE Keeps C Debt Ratings in Not Cooperating
MALWA FRESH: CARE Keeps B- Debt Rating in Not Cooperating
OM PACKAGING: CARE Keeps C Debt Rating in Not Cooperating
PARAMPUJYA SOLAR: S&P Affirms 'BB-' Rating on $500MM Secured Bond
R.K. PHARMACEUTICALS: CARE Keeps B- Debt Rating in Not Cooperating
S K PETRO: CARE Moves D Debt Ratings to Not Cooperating Category
SHIRT COMPANY: CRISIL Lowers Long/Short Term Rating to D
SHIVAJI CANE: CARE Keeps D Debt Rating in Not Cooperating Category
SKYI PROPERTY: CARE Keeps D Debt Rating in Not Cooperating
SPICEJET LTD: Move Closer to Settlement with Celestial Aviation
TRANSWATER SYSTEM: ICRA Withdraws B+ Issuer Rating
N E W Z E A L A N D
APIFORCE LIMITED: Creditors' Proofs of Debt Due on Jan. 19
AVANTI NZ 2023-1: Moody's Assigns B1 Rating to NZD2MM Cl. F Notes
CLUBS OF MARLBOROUGH: Liquidator Picks Preferred Buyer for Club
GURU NZ: Court to Hear Wind-Up Petition on Dec. 15
LUXURY LIU: Court to Hear Wind-Up Petition on Feb. 8
ROSIERS REAL: Court to Hear Wind-Up Petition on Dec. 15
TRADE LIFE: Commences Wind-Up Proceedings
S I N G A P O R E
GL CONSTRUCTION: Court to Hear Wind-Up Petition on Dec. 18
REAL ESTATE: Creditors' Proofs of Debt Due on Jan. 9
REENOVA INVESTMENT: Not in Financial Position to Make Exit Offer
SAKURA FORTE: Creditors' Meetings Set for Dec. 22
WEI SIANG: Court to Hear Wind-Up Petition on Dec. 22
X DIAMOND: Court to Hear Wind-Up Petition on Dec. 29
- - - - -
=================
A U S T R A L I A
=================
BODY CATALYST: Goes Into Administration; Dec. 19 First Meeting Set
-------------------------------------------------------------------
SmartCompany reports that Body Catalyst, a spa chain offering
non-invasive beauty treatments across dozens of locations, has
collapsed into administration.
Dozens of Body Catalyst locations across Australia came under the
administration of Alan Walker and Glenn Livingstone of WLP
Restructuring on Dec. 7, according to the Australian Securities and
Investments Commission (ASIC), SmartCompany discloses.
According to SmartCompany, the collapse appears to represent the
entirety of Body Catalyst's company-owned network, including 29
clinics operating across Victoria, New South Wales, and
Queensland.
BC Leasing Group Pty Ltd and Cryo Clinic Pty Ltd, both related to
Body Catalyst, are among more than 40 entities included in the
administration.
Declining revenues during a consumer spending downturn are to blame
for the collapse, Mr. Walker told SmartCompany on Dec. 12.
"There's obviously a lot of factors at play in the wider economy,
driving people's decisions, and it's had a significant impact on
the group's revenue," SmartCompany quotes Mr. Walker as saying.
"When you've got a business of this size, there's quite a few fixed
overheads, which are quite sticky.
"As your revenue comes off, you can't flex those fixed costs
easily."
Unlike other businesses with footprints of its size, Body Catalyst
maintained ownership of its entire network, the report says.
The company closed several clinics in May this year, but company
leadership sought a restructure to save the financially viable
parts of the business.
Now, the administrators intend to continue trading for the
remaining clinics through the restructuring process, SmartCompany
relates.
"The customers are obviously a big factor," Mr. Walker added.
"We just want to reiterate that the clinics are still open.
"And those appointments will continue to be serviced as best as the
company can, and we will shortly provide communications to those
customers."
While the administration is still in its early phases, Mr. Walker
said the goal is to "save as much of the business and as many jobs
as we possibly can," SmartCompany relays.
The first meeting of creditors will take place on December 19 at
WLP Restructuring's Sydney office, the report notes.
Body Catalyst was founded in 2013 by Samantha Barakat Light, who
launched the enterprise with a single clinic in Bondi Junction.
The business initially focused on fat freezing, fat cavitation,
skin tightening, and cellulite treatments, but grew to provide
treatments like non-surgical facelifts and 'notox' facial sessions
for men and women.
CONTINENTAL COAL: Former Director Peter Landau Gets Jail Sentence
-----------------------------------------------------------------
Peter Neil Landau, of Claremont, Western Australia, was sentenced
on Dec. 8, 2023, before the Supreme Court of Western Australia to
five years and two months' imprisonment with a non-parole period of
three years and two months for five stealing offences and one
offence of forging and uttering contrary to the Criminal Code
(WA).
Additionally, Mr. Landau was sentenced to a further 12 months'
imprisonment in relation to two Corporations Act offences which
commences at the expiration of his non-parole period. Mr. Landau
must serve six months of this sentence prior to being released upon
him entering into a recognisance in the sum of AUD1,000 to be of
good behaviour for six months.
Overall, the total minimum time Mr. Landau must serve is three
years and eight months' imprisonment.
Mr. Landau was a director of former ASX-listed companies Citation
Resources Limited and Continental Coal Limited.
On Aug. 17, 2022, Mr. Landau pleaded guilty to:
* five counts of stealing a total of AUD2.2 million as a
director of Citation, contrary to s 378(8) Criminal Code
(WA);
* one count of forging and uttering a Citation bank statement
that falsely recorded the account balance as being
AUD675,658, when the correct balance was AUD117.55, contrary
to s 473 Criminal Code (WA);
* one count of authorising the giving of false or misleading
information to the ASX relating to the affairs of Continental
Coal by failing to disclose that its only income-generating
asset had gone into administration and by stating that shares
had been issued and funds had been raised, when this had not
occurred, contrary to sections 1309(1)(c) and 1311(1)
Corporations Act; and,
* one count of providing false information to ASIC, namely that
Continental Coal had received $2.6 million from investors
when they had only received approximately AUD57,238.30,
contrary to sections 1308(2) and 1311(1) Corporations Act.
In sentencing, Justice McGrath remarked that Mr. Landau's conduct
involved extended breaches of trust and went against the
fundamental responsibilities of a company director.
Justice McGrath observed that the benefits of being in the
corporate world were great but so too were the responsibilities and
stated, 'it is at the time of pressure arising from financial
difficulties that a director must most diligently adhere to the
proper performance of their duties.'
His Honour further remarked, in relation to the offences contrary
to the Corporations Act, 'the seriousness of this type of offending
is the effect false and misleading information may have on the
behaviour of respective investors and shareholders who erroneously
believe they are making fully informed decisions.'
Mr. Landau also pleaded guilty to one count of failing to hold
applicant money on trust after he transferred AUD1,032,000 from a
Continental Coal trust account into various bank accounts prior to
securities being issued or the money being returned to the
applicants. Mr. Landau will be sentenced to this charge in the
Perth Magistrates Court separately.
The matter was prosecuted by the Commonwealth Director of Public
Prosecutions after an investigation and referral by ASIC.
ASIC's investigation was assisted by the receipt of a comprehensive
report prepared by Continental Coal's liquidator. ASIC assisted the
liquidator to investigate and report their findings by providing
funding from the Assetless Administration Fund.
DAICOM AUSTRALIA: Second Creditors' Meeting Set for Dec. 15
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Daicom
Australia Pty Ltd has been set for Dec. 15, 2023, at 12:00 p.m. 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 Dec. 14, 2023, at 4:00 p.m.
Atle Crowe-Maxwell of DBA Advisory was appointed as administrator
of the company on Nov. 20, 2023.
LIDDLE SHEARING: First Creditors' Meeting Set for Dec. 19
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Liddle
Shearing Co Pty Ltd will be held on Dec. 19, 2023, at 10:00 a.m.
via virtual meeting.
Michael Gregory Jones of Jones Partners Insolvency & Restructuring
was appointed as administrator of the company on Dec. 7, 2023.
PLENTI PL 2023-1: Moody's Upgrades Rating on Class F Notes to Ba3
-----------------------------------------------------------------
Moody's Investors Service has upgraded ratings on five classes of
notes issued by Plenti PL & Green ABS Trust 2023-1.
Issuer: Plenti PL & Green ABS Trust 2023-1
Class B Notes, Upgraded to Aa1 (sf); previously on Feb 21, 2023
Definitive Rating Assigned Aa2 (sf)
Class C Notes, Upgraded to Aa3 (sf); previously on Feb 21, 2023
Definitive Rating Assigned A2 (sf)
Class D Notes, Upgraded to A3 (sf); previously on Feb 21, 2023
Definitive Rating Assigned Baa2 (sf)
Class E Notes, Upgraded to Baa3 (sf); previously on Feb 21, 2023
Definitive Rating Assigned Ba1 (sf)
Class F Notes, Upgraded to Ba3 (sf); previously on Feb 21, 2023
Definitive Rating Assigned B1 (sf)
RATINGS RATIONALE
The upgrades were prompted by an increase in credit enhancement
available for the affected notes and the collateral performance to
date.
Following the November 2023 payment date, the credit enhancement
available for the Class B, Class C, Class D, Class E and Class F
Notes has increased to 22.9%, 17.8%, 14.2%, 10.2% and 5.5%,
respectively, from 15.8%, 12.3%, 9.8%, 7.0% and 3.8% at closing.
As of end-October 2023, 2.8% of the outstanding pool was 30-plus
day delinquent, and 1.2% was 90-plus day delinquent. The deal has
incurred of 1.0% of gross losses to date. AUD44,915 of losses have
not been covered by excess spread and were charged off to the Class
G2 Notes on the November 2023 payment date.
Based on the observed performance to date and loan attributes,
Moody's has maintained its expected default assumption at 5% of the
original pool balance (equivalent to 5.8% of the outstanding pool
balance).
Moody's has maintained the Aaa portfolio credit enhancement (PCE)
at 25.5%.
Moody's analysis has also considered various scenarios involving
different mean default rates, recovery rates and default timing to
evaluate the resiliency of the note ratings.
The transaction is a cash securitisation of personal loans,
renewable energy loans and renewable energy buy-now-pay-later
(BNPL) receivables originated by Plenti Finance Pty Limited.
The principal methodology used in these ratings was "Moody's
Approach to Rating Consumer Loan-Backed ABS" published in December
2022.
Factors that would lead to an upgrade or downgrade of the ratings:
Factors that could lead to an upgrade of the ratings include (1)
performance of the underlying collateral that is better than
Moody's expectations, and (2) an increase in the notes' available
credit enhancement.
Factors that could lead to a downgrade of the ratings include (1)
performance of the underlying collateral that is worse than Moody's
expectations, (2) a decrease in the notes' available credit
enhancement, and (3) a deterioration in the credit quality of the
transaction counterparties.
SMILESTYLER SOLUTIONS: First Creditors' Meeting Set for Dec. 15
---------------------------------------------------------------
A first meeting of the creditors in the proceedings of Smilestyler
Solutions Pty Ltd will be held on Dec. 15, 2023, at 10:30 a.m. via
via telephone and webinar only.
Robert Smith and Shaun Fraser of McGrathNicol were appointed as
administrators of the company on Dec. 5, 2023.
UNIVERSITY CHILD: First Creditors' Meeting Set for Dec. 19
----------------------------------------------------------
A first meeting of the creditors in the proceedings of The
University Child Care Club Inc, trading as Unicare, will be held on
Dec. 19, 2023, at 10:00 a.m. at the offices of WA Insolvency
Solutions, a division of Jirsch Sutherland, Suite 6.02, Level 6,
109 St Georges Terrace, in Perth, WA, and via teleconference
facilities.
Jimmy Trpcevski and David Hurt of WA Insolvency Solutions were
appointed as administrators of the company on Dec. 7, 2023.
W. HUTCHISON: First Creditors' Meeting Set for Dec. 19
------------------------------------------------------
A first meeting of the creditors in the proceedings of W. Hutchison
& Son Pty. Ltd. will be held on Dec. 19, 2023, at 11:30 a.m. at the
offices of Worrells, Level 14, 570 Bourke Street, in Melbourne, Vic
and via virtual meeting technology.
Con Kokkinos of Worrells was appointed as administrator of the
company on Dec. 7, 2023.
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C H I N A
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COUNTRY GARDEN: Set to Avoid Yuan Bond Default After Holder Deal
----------------------------------------------------------------
Bloomberg News reports that Country Garden Holdings Co., the
Chinese builder whose liquidity crunch shook the nation's financial
markets, is likely to avoid its first default on yuan bonds after
most holders of a local note agreed not to demand repayment this
week, people familiar with the matter said.
Bloomberg relates that the Shenzhen Stock Exchange met last week
with some holders of the CNY800 million (US$111.5 million) security
to seek such an outcome. The bond has a put option Dec. 13 that
allows investors to demand repayment before maturity next year. But
most investors were swayed to forgo using that option, according to
the people, who asked not to be identified discussing a private
matter.
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.
DALIAN WANDA: Reaches Deal With Pre-IPO Creditors
-------------------------------------------------
Yicai Global reports that Dalian Wanda Group has negotiated a way
forward with investors it brought in ahead of the planned initial
public offering of its commercial property management unit, and
they will not hold the indebted Chinese real estate giant liable
for failing to meet the agreed compensation terms should the
subsidiary not go public by the end of 2023.
Instead, private equity firm PAG and the other investors have
agreed to re-invest in Zhuhai Wanda Commercial Management Group
once the redemption period expires at the end of the year,
according to the new agreement penned by PAG, which was the biggest
investor at USD2.8 billion, Dalian Wanda said on its website Dec.
12, Yicai relates.
After the reinvestment, new and existing investors including Hong
Kong-based PAG will own 60 percent of Zhuhai Wanda, while Dalian
Wanda will hold the other 40 percent and remain the biggest single
shareholder, Yicai says.
In 2021, some 22 investors, including internet behemoth Tencent
Holdings, fintech firm Ant Group and developer Country Garden, paid
CNY38 billion (USD5.3 billion) for a 21.2 percent stake in Zhuhai
Wanda before it went public, recalls Yicai. A valuation adjustment
mechanism was put in place that stated that Dalian Wanda would buy
back the equity from these investors if the subsidiary did not
float before the end of 2023.
Although Zhuhai Wanda applied to go public on the Hong Kong Stock
Exchange four times since then, none of them materialized, and the
last application is due to expire at the end of this month.
Zhuhai Wanda, which manages 494 business centers of which 290 are
under the Wanda umbrella, is now in negotiations with investors to
postpone its listing to 2026, Yicai notes citing a previous report
by online news outlet The Paper.
Since these investors became shareholders, Zhuhai Wanda has out
performed its performance goals for three consecutive years, Dalian
Wanda said, Yicai relates. Net profit is likely to surge 27 percent
this year from the year before to CNY9.5 billion (USD1.3 billion),
while revenue is predicted to climb 8 percent to CNY29.3 billion
(USD4.1 billion).
About Dalian Wanda
Dalian Wanda Group Co., Ltd. operates real estate business. The
Company develops commercial property including commercial centres,
urban pedestrian streets, hotels, office buildings, and apartments.
Dalian Wanda Group also operates tourism investment, cultural, and
department store businesses.
As reported in the Troubled Company Reporter-Asia Pacific in early
December 2023, Bloomberg News saidDalian Wanda Group's founder Wang
Jianlin is planning to sell the rest of the firm's film unit as the
troubled Chinese conglomerate faces increasing debt repayment
pressure.
The billionaire plans to transfer his 51 per cent stake in Beijing
Wanda Investment, which controls Wanda Film Holding, to a
subsidiary of China Ruyi Holdings, according to a Shenzhen Stock
Exchange filing on Dec. 6. That will give Ruyi full ownership after
its July purchase of 49 per cent of Beijing Wanda Investment for
CNY2.3 billion.
Investors in November rejected Wanda's proposal to extend the
deadline for the repayment of CNY30 billion plus interest if its
mall unit fails to list shares by the end of this year, Bloomberg
said. Its property arm only recently managed to obtain consent from
creditors to push back the maturity date for a US$600 million US
dollar bond.
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I N D I A
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AGROW FOODS: CARE Keeps D Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Agrow
Foods (AF) continue to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 7,
2022, placed the rating(s) of AF under the 'issuer non-cooperating'
category as AF 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. AF continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
September 23, 2023, October 3, 2023, November 27, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Agrow Foods (AF) was established in the year 2015 by Mr. Swapnil
Munde and is engaged in the trading and processing of food grains
(pulses) at Nagpur, Maharashtra. The commercial operations of the
entity started in the month of September, 2015.
BALAJI ROADLINES: CRISIL Withdraws B Rating on INR5ccr LT Loan
--------------------------------------------------------------
Due to inadequate information, CRISIL Ratings, in line with SEBI
guidelines, had migrated the rating of Shree Balaji Roadlines (SBR;
part of the Shree Balaji group) to 'CRISIL B/Stable Issuer Not
Cooperating'. CRISIL Ratings has withdrawn its rating on bank
facility of SBR following a request from the company. Consequently,
CRISIL Ratings is migrating the ratings on bank facilities of SBR
from 'CRISIL B/Stable Issuer Not Cooperating' to 'CRISIL B/Stable'.
The rating action is in line with CRISIL Ratings' policy on
withdrawal of bank loan ratings.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 5 CRISIL B/Stable (Migrated
Bank Loan Facility from 'CRISIL B/Stable
ISSUER NOT COOPERATING';
Rating Withdrawn)
SBR was set up as a proprietorship firm by Mr. Vijay Gaikwad in
2003. It provides logistical services. Shree Balaji Corporation,
Sania Transport, and Vijav Transport also provide logistical
services.
BALAJI WOOLLEN: CARE Lowers Rating on INR4.53cr LT Loan to B-
-------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Shree Balaji Woollen Mills (SBWM), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 4.53 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Short Term Bank 1.92 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 11,
2022, placed the rating(s) of SBWM under the 'issuer
non-cooperating' category as SBWM 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. SBWM
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated September 27, 2023, October 7, 2023, October 17,
2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of SBWM have been
revised on account of non-availability of requisite information.
Shree Balaji Woolen Mills (SBWM), based in Panipat, Haryana was
established in 1994 as a partnership firm. The firm is currently
being managed by Mr. Satish Goel and Mr. Saurabh Goel as its
partners. SBWM is presently engaged in the manufacturing of woolen
yarn and blankets at its facility located in Panipat, Haryana.
DHANRAJ COTTON: CARE Lowers Rating on INR12cr LT Loan to B-
-----------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Dhanraj Cotton Industries (DCI), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 7,
2022, placed the rating(s) of DCI under the 'issuer
non-cooperating' category as DCI 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. DCI
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated September 23, 2023, October 3, 2023, November
28, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings have been revised on account of non-availability of
requisite information.
Dhanraj Cotton Industries (DCI) is a Hinganghat based, partnership
firm, established by Mr. Dilip Rathi and Sudha Rathi in 2012. The
entity is engaged in the business of cotton ginning and pressing.
The entity is also into trading of cotton bales and cotton.
EASTSTAR MANUFACTURING: CARE Keeps B- Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Eaststar
Manufacturing Syndicate (EMS) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.50 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 1.40 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 15,
2022, placed the rating(s) of EMS under the 'issuer
non-cooperating' category as EMS 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. EMS
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated October 1, 2023, October 11, 2023, October 21,
2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
EMS was established as a partnership firm in April 2005 by Mr.
Rajesh Kumar Garg, Mr. Ashwini Kumar and Mr. Sanjay Kumar as its
partners, sharing profit and loss equally. EMS is engaged in the
distribution of Samsung mobile phones & accessories, Samsung
electronic goods and Su-Kam batteries in Punjab.
GANESH EDUCATION: CARE Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Shree
Ganesh Education and Welfare Society (SGEWS) continue to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 7,
2022, placed the rating(s) of SGEWS under the 'issuer
non-cooperating' category as SGEWS 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. SGEWS continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated September 23, 2023, October 3,
2023, November 28, 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).
Shree Ganesh Education and Welfare Society (SGWES) is an
educational society and was formed in April 8, 2011 under Societies
Registration Act, 1860 with an objective to provide educational
services by establishing and operating various educational
institutions. The society operate colleges and school under the
name of "Dev Rishi" in a single geography offering varied courses
located in Saharanpur.
GIRNA INFRAPROJECTS: CRISIL Lowers Long/Short Term Rating to D
--------------------------------------------------------------
CRISIL Ratings has downgraded its rating on the bank facilities of
Girna Infraprojects Private Limited (GIPL) to 'CRISIL D/CRISIL D
Issuer Not Cooperating' from 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'. The rating action is based on delay in servicing debt
obligations by JPI which came to CRISIL ratings' notice through
public information.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Rating - CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
Short Term Rating - CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL A4 ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with GIPL for
obtaining information through letter and email dated August 25,
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 JPI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on JPI
is consistent with 'Assessing Information Adequacy Risk'.
Incorporated in September 2010 in Nashik, GIPL undertakes civil
construction contracts. The company is promoted by Mr. Ratnakar
Pawar, who has been in the civil construction business for 25
years.
GOLDEN FOOD: CARE Keeps B- Debt Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Golden
Food Products (GFP) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.40 CARE B-; 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 November 11,
2022, placed the rating(s) of GFP under the 'issuer
non-cooperating' category as GFP 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. GFP
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated September 27, 2023, October 7, 2023, October 17,
2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
GFP was established in April 1998 as a partnership firm having Mr
Baldev Krishan and Mr Megh Raj as its partners, sharing profit and
loss equally. The firm is engaged in processing of paddy at its
manufacturing facility located at Nabha, Punjab.
GOLDEN SPINNING: CARE Lowers Rating on INR8.41cr Loan to B+
-----------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Golden Spinning Mills Private Limited (GSMPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.41 CARE B+; Stable Revised from
Facilities CARE BB-; Stable
Rationale and key rating drivers
The revision in the rating assigned to the bank facilities of GSMPL
factors in the decline in operating income and profitability with
net losses during FY23 (refers to the period of April 01 to March
31). The rating continues to be constrained by small scale of
operations, weak capital structure, weak debt coverage indicators,
presence in highly fragmented industry and exposure to volatility
in raw material prices. The rating however derives strength from
experienced promoters with long track record of operations and
established relationship with customer.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Ability to scale up operations with total income above INR45
crore while maintain PBILDT margin above 7% on sustained basis.
* Improve capital structure with overall gearing below 3x.
Negative factors
* Any slowdown of orders resulting in sizable decline in scale of
operations below INR25 crore on sustained basis.
* Any large size debt funded capex leading to deterioration of
capital structure above 8x.
Analytical approach: Standalone
Outlook: Stable
The 'Stable' outlook reflects that the company is expected to
continue benefits derived from the vast experience of the promoters
in spinning industry and established relationship with the
customers.
Detailed description of the key rating drivers:
Key weaknesses
* Decline in scale of operations and profitability: GSMPL is a
relatively small player in the segment with installed capacity of
21760 spindles as on October 31, 2023. The scale of operations
declined with total operating income of INR31.96 crore in FY23 by
32% against INR47.02 crore in FY22. The decrease in operating
income is majorly due to the reduced yarn demand in domestic
market. The company had incurred operating loss of INR0.61 crore in
FY23 against INR3.25 crore of operating profits in FY22 owing to
volatile raw material prices.
* Weak capital structure and debt coverage indicators: The capital
structure remained weak with overall gearing at 6.91x as on March
31, 2023 owing to low networth base. The debt protection metrics
also stood weak with cash losses booked in FY23.
* Susceptibility of profits to volatile raw material price
fluctuation and seasonality associated with availability of Cotton:
The profitability of spinning mills depends largely on the prices
of cotton and cotton yarn which are governed by various factors
such as area under cultivation, monsoon, international
demand-supply situation, etc. The cotton being the major raw
material of spinning mills, movement in cotton prices without
parallel movement in yarn prices impact the profitability of the
spinning mills. The cotton textile industry is inherently prone to
the volatility in cotton and yarn prices. The PBILDT margin of the
company had been volatile in the range of 5% to 7.5% over the past
four years ended FY22 and reduced to operating losses in FY23.
Key strengths
* Experienced promoters with long track record of operations and
established relationship with customers: GSMPL was promoted by Mr.
P. Sundaram, Managing Director, who is a graduate with experience
in textile industry for nearly five decade and Mr. P. Gunasekaran,
Director who has an experience in textile industry for more than
four decades. The vast experience of the promoters in a similar
industry is likely to maintain a long-term relationship with
customers and suppliers and also benefits the company in receipt of
orders from new customers along existing clientele. GSMPL's has
established and strong relationship with various clients for more
than two decades.
Liquidity: Stretched
Liquidity is stretched marked with lower accruals to repay its term
debt obligations of INR1.31 crore in FY24 and with low cash balance
of INR0.59 crore as of March 31, 2023. The operating cycle has
stretched in FY23 to 139 days from 90 days in FY22. The inventory
days had stretched from 99 days to 138 days owing to slow moving
finished goods on the back of decreased yarn demand- in the market.
The company receives payment in 30-35 days from its customers while
it avails 30-35 days from its suppliers. The company has been
sanctioned with cash credit of INR7 crore and the average
utilisation stood high at 97% for past twelve months ended October
31, 2023.
Golden Spinning Mills Private Limited (GSMPL) was established in
1981 by Mr. P.Thangalvelu, Mr. P. Sundaram and Mr. P. Gunasekaran
in Salem, Tamil Nadu. The company is engaged in manufacturing of
cotton yarn at its unit located at Salem, Tamil Nadu with an
installed capacity of 21,760 spindles. GSMPL supplies 90% of its
products in the states of Tamil Nadu and remaining to Telangana,
Andhra Pradesh, Maharashtra and Karnataka through agents.
IKAT EXPORTS: ICRA Reaffirms B+ Rating on INR17.50cr NCD
--------------------------------------------------------
ICRA has reaffirmed ratings on certain bank facilities of IKAT
Exports Private Limited (IEPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non-convertible 17.50 [ICRA]B+(Stable); reaffirmed
debentures (NCD)
Rationale
The rating reaffirmation for the non-convertible debentures (NCD)
of IEPL factors in the long track record of its promoters in the
real estate sector, along with the favourable location of the
proposed project in Patia, Bhubaneshwar, which is in close
proximity to several operational IT parks, educational institutes,
and hospitals.
However, the rating is constrained by the project execution risk,
given the nascent stage of operations with land acquisition for the
first residential project yet to be completed and project approvals
still pending. The company is also exposed to funding and market
risks. Further, being a cyclical industry, the real estate sector
is highly dependent on macroeconomic factors, which exposes its
sales to any downturn in real estate demand. IEPL also faces stiff
competition within the region from various established developers,
as operations remain geographically concentrated in the Patia
region.
The Stable outlook on IEPL's rating reflects ICRA's opinion that
the company will benefit from the favourable project location and
the long track record of promoters in the real estate sector.
Key rating drivers and their description
Credit strengths
* Favourable location of the project: The proposed upcoming
residential project is located in Patia, Bhubaneshwar, in the
vicinity of several operational and upcoming IT office parks. The
area has easy access to social infrastructure like educational
institutes, hospitals, etc, which are located within 1-5 km of the
project site. The favourable location is expected to support the
demand prospects of the project.
* Long track record of promoters in real estate sector: The
promoters have an extensive experience in the real estate sector.
They have been involved in the execution of multiple housing
projects since 1997.
Credit challenges
* Nascent stage of operations and exposure to project concentration
risks: The company's first project is in the land aggregation stage
with land acquisition to be completed by the end of FY2024.
Approvals are yet to be sought from the respective governing bodies
as the design and plans of the project are yet to be finalised.
This exposes IEPL to project execution and market risks. Further,
it would face stiff competition from established developers in the
region and would face project concentration risk.
* Exposure to funding risk: The company plans to fund the upcoming
project through a mix of NCD, promoter contribution and customer
advances. IEPL has raised INR17.5 crore from the NCD issuance as of
January 2023, which has been majorly utilized for land purchase.
The promoters are expected to infuse INR20 crore in the near term
and project development is dependent on customer advances post
project launch. This exposes the project to funding risk.
* Cyclicality inherent in real estate sector: Being a cyclical
industry, real estate is highly dependent on macroeconomic factors,
which exposes the company's sales to any downturn in real estate
demand. IEPL also faces stiff competition within the region from
various established developers, as operations remain geographically
concentrated in Bhubaneshwar.
Liquidity position: Stretched
IEPL's liquidity position is expected to remain stretched as the
project is in the nascent stages with land acquisition yet to be
completed. The company would remain dependent on getting the
requisite promoter funding and attaining adequate sales for project
development and NCD repayments.
Rating sensitivities
Positive factors – Receipt of requisite approvals, attaining
healthy sales and collections in the project, and the resultant
improvement in cash flow visibility and cash flow adequacy ratio
may trigger a rating upgrade.
Negative factors – The rating may be downgraded if delays in
project launch or weak sales results in inadequate visibility on
future cash flows.
IKAT Exports Private Limited is a private company incorporated on
June 16, 2004. It is currently promoted by Mr. Rajendra Gupta, Ms.
Pragati Gupta and Mr. Rohit Raj Modi. The company plans to develop
a residential project in Patia, Bhubaneshwar. Phase 1 of the
project is planned on a land of 4.232 acres with a total saleable
area of 5.48 lakh square feet.
INDIA: Pre-pack Scheme Under IBC Likely for Large Companies Too
---------------------------------------------------------------
The Economic Times reports that India is preparing an enabling
provision for a compact and largely informal bankruptcy settlement
process for faster resolution for large firms under the
over-arching Insolvency and Bankruptcy Code (IBC), on the lines of
the one available for micro, small, and medium enterprises (MSMEs),
said people with knowledge of the matter.
As part of amendments to the IBC, the corporate affairs ministry
will likely include the provision to extend the pre-packaged
insolvency framework to large firms or introduce a similar
"creditor-led resolution" mechanism for them, but only when it
believes the time is right, a person told ET on condition of
anonymity.
Another person said the Prime Minister's Office will take a call on
the timing of amendments. No such Bill has been listed for the
ongoing Parliament session.
An enabling provision in the next round of planned amendments to
the IBC will allow the government to implement such a scheme at the
appropriate time in future without requiring Parliament's nod
again, ET relates.
ET says industry has been urging the government for such a
framework for larger firms.
Under the extant pre-pack scheme for MSMEs, creditors and debtors
can first reach an informal agreement on resolution and then
approach the National Company Law Tribunal (NCLT) to admit and
resolve bankruptcy cases quickly, according to ET.
"The IBC amendments are being prepared. The government could put in
place an enabling provision to notify such a framework for big
companies at an appropriate time in future, if not immediately,"
said the person.
According to ET, experts said the pre-pack scheme has not been a
success for MSMEs, but that may work better for bigger companies.
The move comes as 67% of the insolvency cases, where resolution
process was on until September 2023, exceeded the 270-day time
frame stipulated for resolution under the IBC, according to the
data by the insolvency regulator, ET relays. The inordinate delays
result in further erosion of impaired assets, leading to huge
haircuts by creditors.
ET notes that the current pre-pack scheme for MSMEs allows only the
debtor to trigger its own bankruptcy process, subject to the
approval of financial creditors having at least 66% of voting
power. Resolution plans must be submitted within 90 days and the
NCLT has another 30 days to approve them.
ET adds experts said the current pre-pack scheme for MSMEs hasn't
delivered much since its implementation in April 2021, as only a
handful of cases have been admitted under it so far.
The reason, according to a senior public sector banker, is that
bankers fear their decisions on voluntary haircut or case admission
through a mostly informal process can spur potential investigations
in the future even in genuine cases. "Given the paltry amount of
debt involved, only a very few are interested in the pre-pack
scheme (in case of MSMEs)," said the banker, who did not wish to be
identified, ET reports.
ITI LIMITED: ICRA Lowers Rating on INR2,445cr Cash Loan to D
------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of ITI
Limited, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term/ 2,445.00 [ICRA]D/[ICRA]D; Downgraded
Short-term– from
[ICRA]BBB-(Stable)/[ICRA]A3
Fund based
Cash credit
Long-term/ 2,024.50 [ICRA]D/[ICRA]D; Downgraded
Short-term- from [ICRA]BBB-(Stable)/[ICRA]A3
Non-fund based
Rationale
The ratings downgrade for the bank facilities of ITI Limited takes
into consideration delays in debt servicing in the recent past on
one of its working capital loan facilities for the months of
October 2023 and November 2023, owing to poor liquidity position on
account of delays in recoveries from its clients, particularly for
one big order. The said order witnessed delays in execution as well
which resulted in moderation in operating income as well as margins
in FY2023. However, ICRA was made to believe that the revenue
booking is likely to get spilled over to the current fiscal,
although the same remained insufficient to result in improvement in
the liquidity position of the company, leading to instances of
delays in servicing of the interest amount for the cash credit
facilities as well, although the same were paid within 30 days.
ICRA did not receive the No Default Statement (NDS) for the months
of October and November 2023. The company is expecting realization
from the said project very shortly and this will be used to pay off
the current outstandings, albeit with a delay.
Going forward, timely completion of the projects and timely
collection of the receivables and regularisation of the debt
servicing will remain key monitorable. Overall, ITI's credit
profile remains weak with moderate profitability and stretched
liquidity on the back of elevated working capital requirements.
Key rating drivers and their description
Credit strengths
* Long operational track record and experienced management: ITI has
over seven decades of operational expertise in manufacturing
equipment and providing services to industries like telecom,
defense, information technology, banks, financial institutions,
etc. ITI's operations are currently managed by Mr. Rajesh Rai, who
has a vast experience in the telecommunication industry. He is
supported by an experienced team with strong technical background.
* Operational and financial support from GoI: ITI is a
Government-owned company with ~90% stake held by the GoI and its
operations are administered by the DoT under the Ministry of
Communications. With the first-mover advantage, ITI has been one of
the key contractors for the projects of BSNL, MTNL, Ministry of
Defense, Ministry of Rural Development, etc., in the last few
decades. Given its strategic importance, ITI has been involved in
Government projects such as Make in India, Digital India, Smart
City. ITI was declared a sick company in 2004 due to past losses
and erosion of net worth. To restore ITI's financial health, the
CCEA approved a fund infusion of INR4,157 crore in 2014 under SICA
provisions. Till February 2023, ITI had received INR1,026 crore of
capex grant and the entire share of the revenue grant. ITI also
receives grant to meet the statutory liabilities for provident fund
(PF) and gratuity of the employees and the same has been recorded
in the P&L in FY2023.
* Strong order book: ITI has won key projects like BharatNet
Phase-II, ASCON Phase IV Project of the Ministry of Defence,
supplying smart energy meters, network for spectrum, etc. ITI also
has a preferred supplier status among its key customers. It has
also bagged a Purchase Order (PO) from BSNL worth Rs 2421.49 crores
for its 4G rollout. The revenue visibility remained healthy with a
strong order book of over INR11,460.14 crore as of June 2023.
Credit challenges
* Delays in debt servicing: There have been instances of delays in
debt servicing in the months of October and November owing to
stretch in working capital cycle as well as moderation in cash
accruals. While there have been delays in the servicing of interest
on working capital facilities as well, although the same have been
for a period of less than 30 days.
* Weak financial profile: ITI's financial profile is weak,
characterised by low operational cash flows, accumulated losses on
the back of sharp losses in the past and high working capital
intensity. Despite strong order wins, the revenues and accruals
were affected by project delays and deferments. This, coupled with
the delay in receivables, resulted in a tight liquidity position.
The funding requirements have been largely supported by grants,
which were applied for to meet the operational and capex
requirements. ITI reported a net loss of INR228.4 crore for
H1FY2024 due to lower booking of revenue and increased operating
costs. While recovery is expected in second half with improved
order executions and billing, ITI's ability to control its fixed
overheads and improve the collection of pending receivables etc.,
will be critical to improve its financial profile. The company's
operations are working capital intensive and due to the lumpy
nature of the order inflows and execution of bulk tender contracts,
the revenue bookings and earnings are volatile. Pending receivables
on past orders and restricted access to bank funding results in
high working capital intensity.
* High customer concentration risk: ITI's client profile primarily
includes PSUs, the Ministry of Defence, and other Government
agencies and consists of BSNL, MTNL, EESL, BBNL, etc. Over 95% of
ITI's revenues and its current order book are from Government
customers. Going forward, the company's dependence on major clients
will remain high because of its large order book; however, ITI
remains critical for the customers too and has longstanding
relations with them along with a priority quota.
* Environmental and Social Risks: ITI is exposed to the risks of
tightening regulations on the environment and safety. There were no
pending show cause/legal notices from the Central Pollution Control
Board (CPCB)/State Pollution Control Board (SPCB) at the end of
FY2023. This indicates that ITI has been able to mitigate the
regulatory risks by demonstrating a sound operational track record
and ensuring regulatory compliance. ITI designs and manufactures
wireline and wireless networking products, with focus on
technology, innovation and R&D. The business is characterised by
rapid technological changes, customer requirements, evolving
industry standards and launch of products and services. Further,
intellectual property (IP) is a critical element of the business.
The patent rights may be overturned by its competitors which may
adversely affect business and reputation. Therefore, while ITI
remains exposed to the aforementioned social risk, it does not
materially affect its credit profile as of now.
Liquidity position: Poor
There have been delays in the debt servicing for the month of
October and November 2023 owing to elongation in working capital
cycle and moderation in cash flow generation.
Rating sensitivities
Positive factors – The ratings can be upgraded if the company
demonstrates a timely debt servicing track record, supported by an
improvement in the overall liquidity and the profitability on a
sustained basis.
Negative factors – NA.
ITI Limited, incorporated in 1948, is involved in manufacturing
telecom equipment and providing solutions to telecom service
providers, the Ministry of Defence and other Government agencies.
The company's product portfolio includes GSM & CDMA products,
defence products and other diversified products. ITI's service
portfolio includes managed leased-line networks, standalone
signalling transfer-point networks, turnkey telecommunication
solutions, data centres, etc. ITI's manufacturing facilities are in
Bengaluru, Uttar Pradesh, Kerala and Jammu & Kashmir. In addition
to these manufacturing plants, ITI has a dedicated network system
unit for the execution of turnkey projects covering installation
and maintenance support activities for all its products. ITI has an
R&D set-up in its Bengaluru unit with key focus areas of
encryption, supervisory control and data acquisition and wireless
products.
J S V MOTORS: CARE Lowers Rating on INR114.24cr LT Loan to B+
-------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
J S V Motors and Constructions Private Limited (JSVMCPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 114.24 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Revised from
CARE BB; Stable and moved to
ISSUER NOT COOPERATING category
Rationale and key rating drivers
JSVMCPL has not paid the surveillance fees for the rating exercise
agreed to in its Rating Agreement. In line with the extant SEBI
guidelines, CARE Ratings Ltd.'s rating on JSVMCPL's bank facilities
will now be denoted as CARE B+; Stable; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The revision in the ratings of bank facilities of J S V Motors and
Constructions Private Limited factors in the deterioration in the
financial risk profile of the company as characterized by
moderation in the debt coverage indicators and capital structure
coupled with decline in the profitability margins and stretched
liquidity position of the company. The ratings, further continue to
remain constraint on account of moderate operating cycle, pricing
constraints and margin pressure arising out of competition from
various auto dealers in the market and limited bargaining power
with principal automobile manufacturer.
However, the ratings derive strength from experienced management
coupled with long track record of operations and moderate though
improving scale of operations.
Analytical approach: Standalone
Outlook: Stable
Detailed description of the key rating drivers:
Key weaknesses
* Moderation in profitability margins: The company's profitability
margins declined marginally and stood low as marked by PBILDT and
PAT of 3.63% and 0.39% respectively in FY23 as against 4.03% and
0.30% in FY22. Marginal decline in margins is primarily due to
decline in revenue contribution from after sales service which
fetch better margins.
* Moderation in the capital structure: Capital structure of the
company remains leveraged as marked by overall gearing ratio at
5.22x as on March 31, 2023, as compared to 4.04x as on March 31,
2022. The moderation in the capital structure is on account of
increase in term debt and working capital utilisation of the
company as on balance sheet date. Further, the debt service
coverage indicators of the company stood weak owing to low
profitability coupled with high debt levels. The interest coverage
ratio and total debt to GCA stood at 1.61x and 17.38x respectively
in FY23.
* Moderate operating cycle: Operating cycle of the company improved
though stood moderate at 32 days in FY23 as against 36 days in
FY22. The company needs to stock different models of vehicles and
spares in the showrooms in order to ensure adequate availability
and visibility leading to higher inventory days. The average
inventory holding days of the company stood at 30 days in FY23 as
against 34 days in FY22. Though the sales to customers are made on
"Cash and Carry" basis however, around 70% of the vehicles are
bought on vehicle financing basis through banks. The said
phenomenon results in a collection period of around 6 days.
Further, the company received a credit period of around 4 days from
the suppliers for procurement.
* Pricing constraints and margin pressure arising out of
competition from various auto dealers in the market: Indian
automobile industry is highly competitive in nature as there are
large numbers of players operating in the market like Maruti Suzuki
India Limited (MSIL), Tata Motors Limited, Hyundai Motor Company,
Honda Motor Company, Toyota India etc. in the passenger vehicle
segment. The margin on products is set at a particular level by
Hyundai Motor India Limited and Jaguar Land Rover thereby
restricting the company to earn incremental income. With the large
dealership network of Hyundai Motor India Limited and Jaguar Land
Rover, the bargaining power of the dealer with the customer is
further reduced. The market also faces aggressive competition from
various other established automobile dealers of companies like
Maruti Suzuki and Tata Motors Limited etc. In order to capture the
market share, the auto dealers have to offer better buying terms
like providing allowing discounts on purchases which create
pressure on margins and negatively impact the earning capacity of
the company.
* Limited bargaining power with principal automobile manufacturer:
Being primarily into auto dealership business, JSVMCPL's business
model is largely in the nature of trading wherein profitability
margins are inherently thin. Moreover, in this business a dealer
has very less bargaining power over principal manufacturer. The
margin of products is set at a particular level by the principal
manufacturer thereby restricting any incremental income for
JSVMCPL.
Key strengths
* Experienced management coupled with long track record of
operations: The company was incorporated in 2007 and promoted by
Mr. Jatin Verma. He has an experience of around two decades in the
dealership business through his association with Hyundai. Mr.
Pankaj Verma and Mr. Jai Shankar Verma also have relevant
experience through their association with the company. The company
started its commercial operations in 2007 and has long track record
in the industry as compared to other established players. It
currently operates through two 3S facility (Sales, Service,
Spares). Further, company has a dedicated team of marketing and
sales professionals, service in-charge and customer relation
officers, who have around one and half decade of experience in
their respective fields.
* Moderate though Improving scale of operations: The total
operating income (TOI) of the company improved and stood moderate
as marked by TOI of INR336.02 crore in FY23 as against INR285.74
crore in FY22. Gross cash accruals also improved and stood at
INR5.33 crore in FY23 against INR4.40 crore in FY22. Increase in
sales is mainly on account of addition of new showroom of JLR
Jaguar Land Rover (JLR) which became fully operational by the end
of FY21. Further, the company has registered total income from
operation of INR300.56 crores in 7MFY24. Total operating income of
JSVMCPL comprises income from vehicle sales, sale of spare &
accessories, income from job work and repairs and other operating
revenue which is mainly sale of old vehicles.
Liquidity: Stretched
The liquidity of the company is stretched marked by tightly matched
accruals vis-à-vis its repayment obligations. The company has
generated gross cash accruals of INR5.33 crore in FY23 and is
expected to generate envisaged gross cash accruals for FY24 of INR7
crore against repayment obligation of INR5.60 crore in same year.
However, the company has free cash and cash
equivalents to the tune of INR2.39 crore as on March 31, 2023.
Further, the working capital utilization remains high at ~90% as
confirmed by the bankers of the company. However, the company has
free cash and cash equivalents to the tune of INR2.39 crore as on
March 31, 2023.
J S V Motors & Construction Private Limited (JSVMCPL), incorporated
in 2007 is an authorized dealer of Hyundai Motor India Limited and
Jaguar Land Rover, catering to Uttar Pradesh for its sales channel.
At present company has 3 showrooms for Hyundai, one for Jaguar Land
Rover (JLR) and 5 workshops The company manages its operations
through its 3S (Sales, spare and service) facility located in
Lucknow and Barabanki, Uttar Pradesh. The showroom has attached
workshop facility for the post sales services of cars. Mr. Jatin
Verma, who has more than one and half decades of experience in the
dealership business, is the Chairman and M.D of JSVMCPL and is ably
assisted by a qualified management team in the day-to-day
operations of the company.
KRISHNA LILA: CARE Assigns B+ Rating to INR28.71cr LT Loan
----------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Krishna
Lila Park Foundation (KLPF), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 28.71 CARE B+; Stable; Assigned
Facilities
Rationale and key rating drivers
To arrive at the rating assigned to the bank facilities of KLPF,
CARE Ratings Limited has factored in the regular cash inflows
received from the National Institute of Value Education (NIVE), as
per the agreements executed between KLPF and NIVE, and the
financial performance of KLPF. KLPF has raised term debt for the
infrastructure development of the Basil Wood International School
(BWIS) under NIVE, an educational trust formed by the missionaries
of the Hare Krishna Movement group.
The rating assigned to the bank facilities of KLPF is constrained
by the modest operations of BWIS and the execution and funding
risks associated with the ongoing religious theme park
construction. KLPF has also extended loans to other societies in
the group, the timely receipt of which is critical. These rating
weaknesses are partially offset by KLPF's satisfactory capital
structure and the regular cash inflows received from NIVE.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Improvement in the realisation of cash flows from Mantri
Developers Private Limited (MDPL).
* Completion of the theme park project as per the envisaged
timelines or receipt of loans and advances given.
Negative factors
* Delay in receipt of cash flows from NIVE to KLPF, straining the
latter's liquidity position.
* Deterioration in the debt-to-equity level to more than 0.50x.
Analytical approach
Standalone, and factoring in the cash inflows from NIVE, which is
supported by the agreement entered into between KLPF and NIVE.
Outlook: Stable
The outlook reflects that the company's credit profile will remain
stable, backed by regular cash inflows being received from NIVE.
Detailed description of the key rating drivers
Key weaknesses
* Modest operations of NIVE: NIVE has reported a total income of
INR19.67 crore as on March 31, 2023, of which around INR10 crore
was received from BWIS. The surplus was reported at INR7.49 crore
as on March 31, 2023. KLPF has availed debt of INR30 crore (INR28.5
crore term debt and INR1.50 crore of working capital) to build the
infrastructure facilities of BWIS. The company has executed an
agreement between NIVE and KLPF, such that the cash flows will be
received from BWIS or NIVE to the extent of monthly debt
obligations. The regular cash inflow from NIVE is a key rating
metric to sustain the liquidity of KLPF as it has only income in
the form of donation.
* Execution and funding risks of the construction of the ongoing
theme park: KLPF is constructing the Krishna Lila theme park in
Bengaluru to impart knowledge about Lord Krishna and the religion
to children by way of games and through this theme park. The total
project size is approximately INR500 crore, to be funded through
cash flows under the joint developer agreement (JDA) with MDPL.
KLPF had entered into a JDA with MDPL in 2010 to develop a
residential project. Under this JDA, KLPF was supposed to receive
INR375 crore, however, the project has been stalled. KLPF has
received INR201 crore to date from MDPL (INR100 crore is deployed
in the underlying project while the balance is given as loans and
advances to Iskcon Vrindavan. The construction work for the theme
park will be completed using the balance receivables from MDPL.
KLPF's management has stated that no additional debt will be
availed to complete construction of the theme park.
Key strengths
* Satisfactory capital structure: KLPF had a net worth base of
INR207 crore as on March 31, 2023, primarily built up due to the
receipt of cash flows from MDPL under the JDA. The company's
overall gearing stood at 0.14x as on March 31, 2023.
Liquidity: Stretched
KLPF's liquidity is constrained by the non-receipt of receivables
on a regular basis from MDPL, leading to delay in completion of the
theme park. As such, the repayment of the rated debt obligation is
primarily met from the cash flows received from NIVE, as per the
agreement executed between KLPF and NIVE. In addition to the cash
flows received, KLPF receives regular donation income, which will
have a cushion for meeting the obligations in case of any delay in
the receipts from NIVE. The ramp-up of enrolments in NIVE will also
be crucial for the liquidity purpose. The working capital limits
have been completely utilised.
KLPF is part of the Hare Krishna Movement (Iskcon Bangalore) and is
a trust incorporated to build a temple and a religious theme park
based on Lord Krishna to educate the public about Lord Krishna's
teachings and its importance. and to build the infrastructure for a
school under NIVE, an educational trust formed by the missionaries
of the Hare Krishna Movement group.
LORD SHIVA: CARE Keeps D Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Lord Shiva
Trust (LST) continue to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.62 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 November 7,
2022, placed the rating(s) of LST under the 'issuer
non-cooperating' category as LST 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. LST
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated September 23, 2023, October 3, 2023, November
28, 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).
Lord Shiva Trust was formed in April 2008 by Mr Anoop Singh, Mr
Sanjay Agarwal and Ms Manjari Agarwal (trustees) for establishing,
developing and operating educational institutes. The trust began
its operations in the academic session (AS) 2009-10 (July 2009) by
setting up an engineering college at Mathura, Uttar Pradesh under
the name of Eshan College of Engineering (ECE). ECE is approved by
AICTE and affiliated to Gautam Budh Technical University (formerly
UPTU). Furthermore, the trust had also started diploma courses in
the academic session 2012-13 and MBA program in the academic
session 2013-14.
LUCKY MINERALS: CARE Keeps B- Debt Ratings in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Lucky
Minerals (LM) continue to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Long Term/Short 1.75 CARE B-; Stable/CARE A4;
Term Bank 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 November 8,
2022, placed the rating(s) of LM under the 'issuer non-cooperating'
category as LM 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. LM continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
September 24, 2023, October 4, 2023, October 14, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
New Delhi-based, Lucky Minerals (LMS) is a proprietorship concern
established in September 2005 by Mr. Kamal Luthra. The firm took
over the business of erstwhile proprietorship firm 'Lucky Stone'
(established in May 1974). The firm is engaged in crushing and
screening of minerals (iron ore and coal). Additionally, the firm
provides end to end solution for steel plants such as housekeeping,
transportation and other handling services like wagon tippling,
tipper tippling and stacker-reclaimer operations. The firm has a
fleet of equipment and vehicles for conducting the foresaid
activities. It mainly does work on job work basis for steel
manufacturing companies.
MADHYA PRADESH: CARE Lowers Rating on INR1,300cr LT Loan to C
-------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Madhya Pradesh Power Generating Company Limited (MPPGCL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term bank 1,300 CARE C Revised from CARE BB+;
facilities Stable
Rationale and key rating drivers
The revision in the rating assigned to the bank facilities of
MPPGCL takes into account the delay in servicing of debt
obligations of bank facilities (not rated by CARE Ratings Limited
[CARE Ratings]) in October 2023, as indicated by the no-default
statement (NDS) for the month of November 2023 shared by the
company.
The rating assigned to the bank facilities of MPPGCL is constrained
due to the moderate operational performance in terms of
lower-than-normative plant availability factor (PAF) in its power
plants during FY23, leading to under-recovery of annual fixed
charges (AFC) and consequent impact on the profitability of MPPGCL.
The rating is also constrained due to counterparty risk due to weak
credit profile of its sole counterparty, viz, M. P. Power
Management Company Limited (MPPMCL; rated 'CARE BBB-; Stable/CARE
A3'), stretched liquidity profile on account of delay in receipt of
payments from MPPMCL, leveraged capital structure, and weak debt
coverage indicators. The rating also factors in envisaged
debt-funded capex plans for setting-up of additional thermal and
renewable power capacities and installation of a flue gas
desulfurization (FGD) system in its thermal plants.
The rating, however, derives comfort from MPPGCL being a wholly
owned subsidiary of the Government of Madhya Pradesh (GoMP), which
has demonstrated support in the form of equity infusion,
government-guaranteed debt and perpetual loans to MPPGCL, and the
strategic importance of being the state power generating company.
The rating also factors in the presence of long-term power purchase
agreements (PPAs) with MPPMCL operating under the regulated
cost-plus tariff mechanism and fuel supply agreements (FSAs) in
place for all its thermal power plants.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Sustained delay-free track record of debt servicing in case of
all the facilities.
* Demonstration of timely support from GoMP towards debt
obligations and operational support.
* Material improvement in the credit profile of the off-taker along
with substantial reduction in the average collection period on a
sustained basis.
Negative factors
* Delays in debt servicing of the rated facilities.
* Reduction in the shareholding of GoMP and/or support from GoMP to
MPPGCL.
* Further weakening of the credit profile of the off-taker,
resulting in an elongation of the collection period.
* Significant delays in the realization of receivables, resulting
in further deterioration in the liquidity position for the
company.
Detailed description of the key rating drivers
Key weaknesses
* Delays in debt servicing in case of facilities not rated by CARE
Ratings: While MPPGCL has been regular in servicing debt that is
rated by CARE Ratings (as confirmed by the banker of the company),
there are ongoing delays in debt servicing of facilities availed
from financial institution (debt not rated by CARE Ratings) as per
the monthly NDS given by the company.
* Moderate operational and financial performance: Although there
has been a marginal improvement in the operational performance of
MPPGCL during FY23, the PAF of the power plants of MPPGCL remained
lower than the normative levels during FY23. This has adversely
impacted the ability of the company to recover the AFC. The overall
PAF of MPPGCL's power plants improved to 60.90% in FY23 as against
53.80% in FY22 whereas the overall plant load factor (PLF) of the
plants improved to 57.80% in FY23 vis-à-vis 44.41% in FY22.
* Moderate credit risk profile of the off-taker and high receivable
levels: MPPGCL has executed long-term PPAs with MPPMCL for supply
of power generated by its power plants. The credit profile of
MPPMCL is constrained on account of its weak operating performance,
marked by high aggregate technical and commercial (AT&C) losses,
high average cost of supply-average revenue realized (ACS-ARR) gap,
and weak capital structure, resulting in reduced financial
flexibility. Furthermore, MPPMCL has a large amount of outstanding
overdue payments, resulting in a high average overdue-to-monthly
average billing. The liquidity profile of MPPMCL is weak, which is
managed through high utilization levels of fund-based working
capital limits and deferring of payments to creditors, including
MPPGCL. However, MPPGCL has started receiving payments from MPPMCL
under the Ministry of Power's (MoP's) Late Payment Surcharge (LPS)
Rules. The cut-off date for the outstanding dues was June 03, 2022.
The outstanding dues will be payable in 40 instalments. To date,
MPPMCL has paid 15 installments to MPPGCL starting from August 2022
and the funds received have been used to repay the outstanding debt
obligations. As on March 31, 2023, the outstanding receivables of
MPPGCL stood at around INR5,750 crore as against INR6,110 crore as
on March 31, 2022, although it continues to remain high.
* Leveraged capital structure and weak debt coverage indicators:
MPPGCL's capital structure continued to remain highly leveraged
with an overall gearing of 3.40x as at the end of FY22 (FY21:
3.84x) on account of significant debt levels to fund the capex and
support the operations of the company. The debt coverage indicators
stood weak with a profit before interest, lease rentals,
depreciation and taxation (PBILDT) interest coverage of 1.12x in
FY22 (FY21: 1.82x). The total debt (TD)/gross cash accruals (GCA)
and TD/PBILDT also stood high in FY22, at 10.34x (FY21: 10.72x) and
7.08x (FY21: 4.93x), respectively.
* Significant debt-funded capex: MPPGCL has envisaged a capex for
setting up additional thermal and renewable power capacities and
installation of an FGD system in its thermal plants. The total
envisaged capex over the next three to four years is around
INR13,500 crore, which is envisaged to be funded through a mix of
both, debt and equity. The debt-to-equity ratio for the envisaged
capex is expected to be 80:20.
Key strengths
* Parentage of GoMP with support and strategic importance: MPPGCL
is a government company, with 100% equity share capital being held
by GoMP upon unbundling of the erstwhile Madhya Pradesh State
Electricity Board (MPSEB) as a part of the domestic power sector
reforms. MPPGCL supplies electricity to MPPMCL under long-term
PPAs. By virtue of the strategic importance of being a state power
generating company, GoMP has extended financial support through
infusion of equity, perpetual loans, and extending guarantee for
the borrowings of MPPGCL.
* Presence of long-term PPAs under cost-plus tariff mechanism:
MPPGCL has tied-up its entire power generation capacity with MPPMCL
under long-term PPAs, which mitigate the demand risk. These
long-term PPAs have been signed under the regulated cost-plus
tariff mechanism, which allows the company to pass on the entire
costs to MPPMCL, subject to adherence to normative operating
parameters. The per unit capacity and energy charges are determined
by the Madhya Pradesh Electricity Regulatory Commission (MPERC),
considering a post-tax return-onequity (RoE) of 15.50%.
* Fuel supply arrangements in place: Of the total installed power
generation capacity of 6,321.58 MW of MPPGCL, around 85% is
thermal. MPPGCL has entered into long-term FSAs with South Eastern
Coalfields Limited (SECL) for 17.25 million metric tonne per annum
(MMTPA), with Northern Coalfields Limited (NCL) for 1.54 MMTPA, and
with Western Coalfields Limited (WCL) for 8.45 MMTPA, to cater to
the fuel requirements of all its thermal plants.
Liquidity: Poor
The liquidity position of MPPGCL stood poor, marked by an elongated
receivables period on account of significant delays in receipt of
dues and large outstanding receivables from MPPMCL for the power
supplied. The operating cycle stood high on account of high
receivables days of around 257 days in FY22 as against 226 days in
FY21. The company has sanctioned fund based working capital limits
of INR1,300 crore and the average utilization of the same continued
to remain high at around 78% during the last 12 months ended
October 31, 2023, with maximum utilization of around 96%.
MPPGCL was incorporated in 2001, with the objective of carrying out
the power generation business in the state of Madhya Pradesh. GoMP,
vide its orders dated November 1, 2002, and May 31, 2005, unbundled
the erstwhile MPSEB. The functions of generation, transmission,
distribution, and retail supply of electricity, earlier carried out
by the MPSEB, were restructured and transferred to five companies
to function independently. MPPGCL took over the power generation
plants of the erstwhile MPSEB post unbundling in April 2002. The
operations of MPPGCL mainly include generation of power and selling
it to MPPMCL on the basis of long-term PPAs. The equity
requirements in all the ongoing and proposed projects are being met
by GoMP. As on March 31, 2023, MPPGCL had a total power generation
capacity of 6,321.58 MW, which includes a mix of thermal (coal) and
hydro plants.
MAHATMA JYOTIBA: CARE Keeps C Debt Ratings in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Mahatma
Jyotiba Fule Vidhyapeeth Samiti (MJFVS) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 3.49 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Long Term/ 1.50 CARE C; Stable/CARE A4;
Short Term ISSUER NOT COOPERATING;
Bank Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 8,
2022, placed the rating(s) of MJFVS under the 'issuer
non-cooperating' category as MJFVS 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. MJFVS continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated September 24, 2023, October 4,
2023, October 14, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
MJVS was established on 1994 under the Rajasthan Society
Registration Act, 1958, with an objective to provide education
services. The society is running various institutions under the
brand name "Mahatma Jyotiba Fule" (MJF) The society is currently
managed by Mrs Hansha Saini as its Chairman. The society under its
different institutions provides graduates/diploma courses in
Nursing Midwifery, Veterinary Science & Animal Husbandry,
Compounder diploma course, Bachelor of Ayurveda, Medicine and
Surgery (BAMS) and Bachelor of Education. The course being offered
is approved by Veterinary Council of India, while the nursing
courses are approved by Indian Nursing Council. The society also
runs two schools in the name of MJF Vidyapeeth Senior Secondary
School (Hindi-medium school) and Oasis Public School
(English-medium school).
MALWA FRESH: CARE Keeps B- Debt Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Malwa
Fresh Foods (MFF) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 25.50 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 10,
2022, placed the rating(s) of MFF under the 'issuer
non-cooperating' category as MFF 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. MFF
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated September 26, 2023, October 6, 2023, October 16,
2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Malwa Fresh Foods (MFF), based in Bhatinda (Punjab), was
established in January 2014 as a partnership firm. However, the
operations started in April, 2017. The firm is currently being
managed by Mr. Ajay Gupta, Mr. Amit Garg, Mr. Inderjit Singh, Mr.
Mukul Sayal and Mr. Rahul Garg as its partners. The firm has set up
a cold storage facility with at Rampura Phull Punjab. The firm
majorly provides Cold Storage Facility to various renowned players
and local retailers for the storage of seasonal products on rental
basis. The firm is also engaged in trading of seasonal fruits and
vegetable as well as frozen food products.
OM PACKAGING: CARE Keeps C Debt Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Om
Packaging (OP) continue to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 CARE C; 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 November 10,
2022, placed the rating(s) of OP under the 'issuer non-cooperating'
category as OP 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. OP continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
September 26, 2023, October 6, 2023, October 16, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Om Packaging (OP) is a partnership firm, incorporated in 1999,
between Mr Birendra Kumar, Mr. Ramu Sing Yadav & Mr. Shyam Sunder
Yadav and subsequently in February 2012, Mr Ramu Sing Yadav & Mr
Shyam Sunder Yadav retired from the business and Mr. Avinash Kumar
joined the business. OP is thereafter managed by two partners Mr
Birendra Kumarand and Mr. Avinash Kumar. The firm is into business
of manufacturing of wide range of packaging products like
industrial barrels, drums, paper cores and tubes and containers. OM
caters to domestic as well as overseas customers.
PARAMPUJYA SOLAR: S&P Affirms 'BB-' Rating on $500MM Secured Bond
-----------------------------------------------------------------
S&P Global Ratings affirmed its 'BB-' issue-level rating on US$500
million senior secured fixed-rate 5.5-year bond on Parampujya Solar
Energy Private Ltd. Restricted Group (PSEPL RG).
The stable outlook reflects S&P's expectation that PSEPL RG will
refinance the debt by August 2024. Over the next 12-24 months, S&P
expects PSEPL RG to generate stable cash flow in line with P90
generation estimates and timely receivable collections.
PSEPL RG comprises three wholly owned subsidiaries of Adani Green
Energy Ltd.: Adani Green Energy (UP) Ltd., Parampujya Solar Energy
Pte. Ltd., and Prayatna Developers Pvt. Ltd. These entities,
collectively referred to as PSEPL RG, are the co-issuers and
co-guarantors of a US$500 million senior secured fixed-rate
5.5-year bond.
S&P said, "We affirmed our 'BB-' issue rating on PSEPL RG as we
expect the debt will be refinanced by August 2024. PSEPL RG has an
acceptable refinance plan, with advanced draft financing documents
and indicative timeline of major milestones of the refinancing
process. We expect PSEPL RG to have an underwritten refinancing
plan six months prior to the maturity date of Dec. 10. 2024, with
actual repayment after mid-June 2024, when the make-whole provision
ends. We base our analysis of the risk arising from the need to
renew hedging instruments on our Principles of Credit Ratings
criteria and other specific criteria.
"We revised our liquidity assessment to less than adequate to
reflect that PSEPL RG will face a bullet payment of its US$500
million notes--within the next 12 months to December 2024--that it
has not yet refinanced. Unexpected delay in refinancing is likely
to increase liquidity risks as the maturity approaches.
"We base the 'BB-' issue rating on our assessment of PSEPL RG's
operations-phase stand-alone credit profile (SACP) before
counterparty adjustments as 'bb-'. This reflects the preliminary
operations phase SACP of 'b', based on our forecast of a minimum
debt service coverage ratio (DSCR) of 0.95x under our base case.
"The 'b' preliminary SACP takes into account that while we expect
S&P Global Ratings' calculated minimum DSCR to be 0.95x, we do not
expect this to lead to a covenant breach or a default. PSEPL RG has
voluntarily trapped cash from potential hedging gains to prepay
debt. We have not given benefit to this as PSEPL RG's bond
documents do not require trapping cash from any potential hedging
gains. In addition, PSEPL RG has sufficient funds in the debt
service reserve account (DSRA), which is fully funded to cover the
next six months of debt service (September 2023: INR2.9 billion).
The project also benefits from a senior debt restricted
amortization account (September 2023: INR1 billion) and senior debt
redemption account, which must be used to repay a portion of the
maturing debt. We also base our DSCR estimates on the assumption of
a higher all-in refinancing cost of 13% for the new debt, including
credit spreads assumptions of 650 basis points in our base case, in
line with our methodology."
The project's ring-fenced structure protects creditors from the
wider Adani Group-related risks. PSEPL RG's debt is fully secured
and has a cash flow waterfall that prioritizes operating
expenditure and debt service over distributions. As such,
governance risks and funding challenges for the larger Adani Group
currently do not affect PSEPL RG. S&P's view also derives support
from its assessment that the project is delinked from its parents,
including Adani Green Energy Ltd.
S&P said, "The stable outlook reflects our expectation that PSEPL
RG will refinance the debt by August 2024. Over the next 12-24
months, we expect PSEPL RG to generate stable cash flow in line
with P90 generation estimates and timely receivable collections.
"We may lower the rating by one or more notches if the refinancing
plan is not underwritten six months prior to the maturity date,
increasing the uncertainty around the upcoming refinancing."
S&P could also lower the rating if any of the following occurs:
-- S&P believes PSEPL RG's resilience under its downside analysis
has reduced to a modest level, such that cash flow available for
debt service and reserves cannot meet all obligations for at least
five years under our downside stress assumptions. This could occur
due to weaker cash flow resulting from: (1) Lower than P90
generation estimates, an inability to sell power into the grid, or
significantly higher than our expected (i) curtailment risk; (ii)
operation and maintenance (O&M) costs; or (iii) repowering costs;
or (2) Higher hedge renewal costs than S&P's expectations, or
heightened risk from potential cash outflow in the event of an
appreciation of the Indian rupee at the net settlement of the
cross-currency hedge at the end of each hedge period.
-- Uttar Pradesh Power Corp. Ltd.'s (UPPCL) credit profile goes
down by one notch or if we see a lower likelihood of support from
the Indian government for central and state utilities, which could
lead to a revision in our view of the credit profile of PSEPL RG's
counterparties.
-- S&P believes the one-notch insulation that it currently applies
to the weakest offtaker due to the regulatory and legal mechanism
for the recovery of overdue amounts directly from end customers
through an escrow mechanism no longer applies.
S&P may raise the rating upon successful refinancing of the
maturing U.S. dollar notes and if our forecast minimum DSCR
improves materially.
R.K. PHARMACEUTICALS: CARE Keeps B- Debt Rating in Not Cooperating
------------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of R.K.
Pharmaceuticals (RP) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 10.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 11,
2022, placed the rating(s) of RP under the 'issuer non-cooperating'
category as RP 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. RP continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
September 27, 2023, October 7, 2023, October 17, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
R. K Pharmaceuticals (RKP) is a proprietorship firm established in
1997 by Mr. Rakesh Sharma. RKP is engaged in the trading of
aluminium foil, PVC film and raw rubber which finds application in
packaging industry through its three offices located in Punjab,
Himachal Pradesh and Uttarakhand.
S K PETRO: CARE Moves D Debt Ratings to Not Cooperating Category
----------------------------------------------------------------
CARE Ratings has migrated the ratings on certain bank facilities of
S K Petro Services Private Limited (SKPPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 25.75 CARE D; ISSUER NOT COOPERATING
Facilities Rating moved to ISSUER NOT
COOPERATING category
Long Term/ 11.00 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating moved to
Bank Facilities ISSUER NOT COOPERATING category
Detailed rationale and key rating drivers
CARE Ratings Ltd. has been seeking information from SKPSPL to
monitor the rating vide email communications dated July 12, 2023,
and November 22, 2023, and numerous phone calls. However, despite
repeated requests, the company has not provided the requisite
information for monitoring the ratings. In line with the extant
SEBI guidelines, CARE 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. Further, SKPSPL has not paid the surveillance fees for the
rating exercise as agreed to in its Rating Agreement. The rating on
SKPSPL's bank facilities will now be denoted as CARE D/CARE D;
ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The rating assigned to the bank facilities of SKPSPL is due to
ongoing delays in servicing of principal & interest of term loan.
Rating sensitivities:
Positive factors – factors that could lead to positive rating
action/upgrade:
* Default/delay free track record of 90 days
S K Petro Services Private Limited (SKPPL), which began operations
in 2006, is engaged in the business of renting of infrastructure
equipment servicing the oil & gas. SKPPL is an Onshore Rig Service
provider. SKPPLs primary focus is on providing drilling rigs
equipped with the latest technology, equipment and experienced
crew. Most of the rigs are equipped with top drives to undertake
highly specialized drilling operations in technically challenging
environment. SKPPL has ownership of all the 10 Rigs which it leases
out.
SHIRT COMPANY: CRISIL Lowers Long/Short Term Rating to D
--------------------------------------------------------
CRISIL Ratings has downgraded its ratings on the bank facilities of
Shirt Company (India) Private Limited (SCL) to 'CRISIL D/CRISIL D
Issuer Not Cooperating' from 'CRISIL B-/Stable/CRISIL A4 Issuer Not
Cooperating' based on publicly available information.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Rating - CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B-/Stable ISSUER NOT
COOPERATING')
Short Term Rating - CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL A4 ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with SCL for
obtaining information through letter and email dated June 15, 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
CRISIL Ratings has attempted to contact the issuer as well as its
lenders to get clarity on the aforementioned matter. However,
despite repeated attempts to engage with the issuer and its
lenders, CRISIL Ratings has failed to receive any information
either in this matter or the financial performance or strategic
intent of SCL, which restricts CRISIL Ratings' ability to take a
forward looking view on the entity's credit quality. CRISIL Ratings
believes that rating action on SCL is consistent with 'Assessing
Information Adequacy Risk'. Further, CRISIL Ratings has also not
been able to ascertain if there were any delays in debt servicing,
neither from the company nor from any independent sources.
SCL was established by Mumbai-based Mr. Shivanand Shetty in 1984.
The company manufactures shirts, T-shirts, tops, dresses, and other
ready-made garments for men, women, and children.
SHIVAJI CANE: CARE Keeps D Debt Rating in Not Cooperating Category
------------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Shivaji
Cane Processors Limited (SCPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 59.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 27,
2022, placed the rating(s) of SCPL under the 'issuer
non-cooperating' category as SCPL 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. SCPL
continues to be noncooperative 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).
SCPL was incorporated by Mr. Shivajirao Yashwantrao Naik, Founder
Director in 2013 to undertake manufacturing activity of
sulphur-less khandsari and jaggery powder with its operational
facility located at Shirala, Sangli District, and Maharashtra.
SCPL's sugar facility is partially integrated with Sugarcane
crushing. The company sells khandsari and jaggery powder in the
brand name of "Puro".
SKYI PROPERTY: CARE Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Skyi
Property Ventures Limited Liability Partnership (SPVLLP) continue
to remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 45.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated October 27,
2022, placed the rating(s) of SPVLLP under the 'issuer
non-cooperating' category as SPVLLP 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. SPVLLP 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).
Skyi Property Ventures Limited Liability Partnership (SPVLLP)
(Formerly known as Pate Future Constructions Limited Liability
Partnership) is a limited liability partnership firm formed on
January, 2015 and belongs to Pune based Pate Developers. SPVLLP was
formed for developing a budget residential development under the
name "LIFE MAXIMA" at Kirkatwadi, Pune. CARE does not have any
update on the latest developments in this regard.
SPICEJET LTD: Move Closer to Settlement with Celestial Aviation
---------------------------------------------------------------
The Economic Times reports that aircraft lessor Celestial Aviation
and low-cost airline SpiceJet were granted more time to settle the
matter by the National Company Law Tribunal on Dec. 7.
According to ET, the counsels for both sides informed the tribunal
that Spicejet had made some payments to Celestial Aviation Services
Ltd and asked for the matter to be adjourned.
"Parties were discussing the terms of the settlement, and the
discussions are still on," said the senior counsel representing
Spicejet, requesting more time.
ET relates that the counsel for Celestial Aviation also agreed to
adjournment, arguing that he would be ready to argue if settlement
talks fail.
The matter is likely to be listed for January 19, the report
notes.
In August, the aircraft lessor approached the tribunal to initiate
insolvency proceedings under Section 9 of the Insolvency and
Bankruptcy Code, 2016, for defaulting on payments of $29.9 million
for nine aircraft, ET notes.
About Spicejet
SpiceJet Limited -- http://www.spicejet.com/-- is an India-based
low-budget air carrier. The Company operates daily flights between
major cities in India. The carrier is India's second-biggest budget
airline, after IndiGo.
As recently reported in the Troubled Company Reporter-Asia Pacific,
aircraft lessor Wilmington Trust SP Services (Dublin) Ltd has filed
a petition for initiating the corporate insolvency resolution
process against SpiceJet.
This is the third case filed against the airline, according to The
Economic Times. Two other cases under Section 9 of the Insolvency
and Bankruptcy Code, 2016, have been filed by aircraft lessor
Aircastle (Ireland) Ltd and engine lessor Willis Lease Finance
Corporation.
Aircastle (Ireland) filed a CIRP petition against Spicejet on April
28, 2023, while Willis Lease Finance Corporation filed its petition
on April 12, 2023.
The National Company Law Tribunal (NCLT) on Dec. 4 dismissed Willis
Lease' insolvency petition.
In August 2023, aircraft lessor Celestial Aviation Services Ltd had
approached the tribunal to initiate insolvency proceedings against
the low-cost airline for a default of $29.9 million for nine
aircraft.
TRANSWATER SYSTEM: ICRA Withdraws B+ Issuer Rating
--------------------------------------------------
ICRA has withdrawn the ratings [ICRA]B+(Stable) assigned to the
Issuer rating of Transwater System Private Limited at the request
of the company, and in accordance with ICRA's policy on withdrawal.
ICRA does not have information to suggest that the credit risk has
changed since the time the rating was last reviewed.
Transwater System Private Limited (TSPL) provides water treatment
and filtration solutions. The company caters to residential as well
as commercial water treatment and filtration requirements. It is
involved in the assembling and sale of various equipment such as
sewage treatment plants (STP), industrial RO systems, water
softeners, etc. TSPL's products and systems are most preferred for
villas, farmhouses, apartments and layouts for treating, softening
and conditioning incoming bore well or municipal water and for
various segments like schools, colleges, hotels, hostels,
hospitals, malls, IT parks, etc.
=====================
N E W Z E A L A N D
=====================
APIFORCE LIMITED: Creditors' Proofs of Debt Due on Jan. 19
----------------------------------------------------------
Creditors of Apiforce Limited (formerly 1668 Honey Limited) and
Auckland Trading (2023) Limited (formerly Tahaaroa Honey Limited)
are required to file their proofs of debt by Jan. 19, 2024, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on Dec. 1, 2023.
The company's liquidators are:
Craig Sanson
Stephen White
PwC, PwC Auckland
Private Bag 92162
Victoria Street West
Auckland 1142
AVANTI NZ 2023-1: Moody's Assigns B1 Rating to NZD2MM Cl. F Notes
-----------------------------------------------------------------
Moody's Investors Service has assigned the following definitive
ratings to the notes issued by The New Zealand Guardian Trust
Company Limited in its capacity as trustee of Avanti NZ Auto ABS
2023-1 Trust.
Issuer: The New Zealand Guardian Trust Company Limited in its
capacity as trustee of Avanti NZ Auto ABS 2023-1 Trust
NZD160.00 million Class A Notes, Assigned Aaa (sf)
NZD22.00 million Class B Notes, Assigned Aa2 (sf)
NZD4.00 million Class C Notes, Assigned A2 (sf)
NZD6.00 million Class D Notes, Assigned Baa2 (sf)
NZD3.00 million Class E Notes, Assigned Ba2 (sf)
NZD2.00 million Class F Notes, Assigned B1 (sf)
The NZD3.00 million Class G Notes are not rated by Moody's.
Avanti NZ Auto ABS 2023-1 Trust is a cash securitisation of
receivables extended to obligors in New Zealand and backed by motor
vehicles. The receivables were originated and are serviced by
Branded Financial Services (NZ) Limited (BFS NZ, unrated), a wholly
owned and operated subsidiary of Avanti Finance Limited (Avanti
Finance, unrated).
This is Avanti Finance's inaugural New Zealand auto loan ABS
transaction. In August 2023, Avanti Finance securitised its
inaugural ABS backed by auto loans originated by Branded Financial
Services Pty Limited (BFS AU, unrated) in Australia.
The receivables are either to consumer (57.6%) or commercial
(42.4%) obligors. Loans backed by passenger and light commercial
vehicles represent 69.1% and 30.9% of the securitised pool,
respectively.
BFS NZ is a finance company offering auto loans to consumer and
commercial obligors in New Zealand. BFS NZ and BFS AU (together,
BFS) were established in 2013 and 2010 respectively by Ateco
Automative Group and acquired by Avanti Finance in 2019. As of
September 2023, BFS's New Zealand retail receivables portfolio was
approximately NZD373 million.
RATINGS RATIONALE
The definitive ratings take into account, among other factors,
evaluation of the underlying receivables and their expected
performance, evaluation of the capital structure and credit
enhancement provided to the notes, availability of excess spread
over the life of the transaction, the liquidity facility in the
amount of 3.50% of the rated notes balance, the legal structure,
the experience of BFS NZ as servicer and presence of the back-up
servicing arrangements.
According to Moody's, the transaction benefits from relatively high
weighted average seasoning of 12.0 months.
The back-up servicer in this transaction, Verofi Limited (Verofi,
unrated), is a small entity, which is a challenge. While Verofi's
team is experienced, the company employs a limited number of core
staff, posing key-person risk. This weakens the back-up servicing
arrangements. The ability of the Trustee to promptly appoint a
replacement servicer should Verofi be unable for any reason to step
in as the servicer somewhat mitigates this risk. Furthermore, the
risk of payment disruption is mitigated by the liquidity facility,
covering just over five months of stressed fees and interest
payments.
Key transactional features are as follows:
-- Initially, the principal will be allocated sequentially. Once
step-down conditions are satisfied, all notes, other than Class G
Notes, will receive their pro-rata share of principal. Step-down
conditions include, among others, 27.5% subordination to the Class
A Notes and no unreimbursed charge-offs.
-- Westpac Banking Corporation (Aa3/P-1/Aa2(cr)/P-1(cr)) will
provide an interest rate swap in the transaction, hedging the
interest rate mismatch between the assets bearing a fixed rate of
interest, and floating rate liabilities. The notional balance of
the swap will follow a schedule based on amortisation of the pool
assuming a certain prepayment rate.
Key model and portfolio assumptions:
Moody's Portfolio Credit Enhancement ("PCE") — representing the
loss that Moody's expects the portfolio to suffer in the event of a
severe recessionary scenario — is 14%. Moody's mean default for
this transaction is 2.5%. The assumed recovery rate is 35%.
Expected defaults, recoveries and PCE are parameters used by
Moody's to calibrate its lognormal portfolio loss distribution
curve and to associate a probability with each potential future
loss scenario in Moody's cash flow model to rate auto ABS.
Key pool features are as follows:
-- Interest rates in the portfolio range from 5.3% to 17.3%, with
a weighted average interest rate of 10.2%.
-- Loans with balloon payments at the end of the term represent
around 12.8% of the pool. Both consumer and commercial loans have
balloons, with around 6.8% and 5.9% of the overall pool
respectively.
-- The weighted average seasoning of the portfolio is 12.0 months.
The weighted average remaining term is 47.2 months.
The principal methodology used in these ratings was "Moody's Global
Approach to Rating Auto Loan- and Lease-Backed ABS" published in
November 2023.
Factors that would lead to an upgrade or downgrade of the ratings:
Up
Levels of credit protection that are greater than necessary to
protect investors against current expectations of loss could lead
to an upgrade of the ratings. Moody's current expectations of loss
could be better than its original expectations because of fewer
defaults by underlying obligors. The New Zealand economy and job
market are primary drivers of performance.
Down
Levels of credit protection that are insufficient to protect
investors against current expectations of loss could lead to a
downgrade of the ratings. Moody's current expectations of loss
could be worse than its original expectations because of more
defaults by underlying obligors. The New Zealand economy and job
market are primary drivers of performance. Other reasons for worse
performance than Moody's expects include poor servicing, error on
the part of transaction parties, a deterioration in credit quality
of transaction counterparties, lack of transactional governance and
fraud.
CLUBS OF MARLBOROUGH: Liquidator Picks Preferred Buyer for Club
---------------------------------------------------------------
Stuff.co.nz reports that the liquidator of the Clubs of Marlborough
has picked his preferred buyer - opting for the one he feels is
"more likely to complete".
Stuff relates that Malcolm Hollis, of PricewaterhouseCoopers, said
he was "quietly confident" the deal would go unconditional, once
the bidder carried out their due diligence, saying they were a
buyer of "substance".
"The [interested] party selected is a very good one . . . They know
what they are going to do with it."
The Clubs of Marlborough went on the market in October, touted as a
great opportunity for potential owner-occupiers or astute investors
looking to purchase a property in Blenheim at a fraction of the
replacement value, according to Stuff.
It was a 6,500 square meter two-storey property, on a 2800 square
meter section, in a "prime location", with views of the Taylor
River. The building was unit titled into three main units, with the
Clubs of Marlborough owning units B and C. The Marlborough District
Council owned Unit A, the Marlborough Events Centre, which was not
for sale.
The Clubs of Marlborough, built in 2007, closed its doors last
November due to multimillion-dollar debt and declining revenue,
Stuff notes. At the time of closing, it had about 4,000 members and
employed 50 staff. The Marlborough Returned and Services
Association vacated the building at the same time.
According to Stuff, Mr. Hollis said he informed the buyer their bid
was successful at the end of last week. Earlier last week, he said
he had whittled it down to the last two. Both those bids were
conditional. He would not reveal who made the successful bid.
"Each had pros and cons," he said. "In the end, it was a bit of a
balancing act to decide which party was preferred."
Stuff relates that Mr. Hollis explained a third party had put a bid
in, but they were ruled out pretty quickly. Hollis said they had no
idea what they were going to do with it, didn't respond to
questions and when he tried to look them up online, he could find
nothing on them.
It was a "bit strange", he said, adding the process could sometimes
attract "tyre kickers".
The successful party had a bit less than a month to carry out their
due diligence, but Mr. Hollis suspected they might ask for more
time.
"I'd like to think unconditional pre-Christmas. At the moment, they
have not asked for [more time], but I suspect they might."
He again reminded the public the deal was not yet guaranteed.
"They can get cold feet and pull out . . . [but] quietly confident,
is probably what I would say," he said about the purchase going
through.
If it didn't, the premises would go back on the market, Mr. Hollis
said.
Stuff adds that Mr. Hollis said the agreed sale price would in time
become public information.
GURU NZ: Court to Hear Wind-Up Petition on Dec. 15
--------------------------------------------------
A petition to wind up the operations of Guru NZ Forests Limited
will be heard before the High Court at Auckland on Dec. 15, 2023,
at 10:00 a.m.
Simpson Grierson filed the petition against the company on Sept.
22, 2023.
The Petitioner's solicitor is:
Benoit Jacques Upton
Simpson Grierson, Solicitors
Level 27
88 Shortland Street
Auckland
LUXURY LIU: Court to Hear Wind-Up Petition on Feb. 8
----------------------------------------------------
A petition to wind up the operations of Luxury Liu Limited will be
heard before the High Court at Auckland on Feb. 8, 2024, at 10:45
a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Sept. 22, 2023.
The Petitioner's solicitor is:
Hosanna Tanielu
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
ROSIERS REAL: Court to Hear Wind-Up Petition on Dec. 15
-------------------------------------------------------
A petition to wind up the operations of Rosiers Real Burgers
Limited will be heard before the High Court at Auckland on Dec. 15,
2023, at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Oct. 25, 2023.
The Petitioner's solicitor is:
Cloete Van Der Merwe
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
TRADE LIFE: Commences Wind-Up Proceedings
-----------------------------------------
Members of Trade Life Limited (trading as ProCoat Painting &
Gibstopping) on Dec. 4, 2023, passed a resolution to voluntarily
wind up the company's operations.
The company's liquidators are:
Paul Thomas Manning
Thomas Lee Rodewald
BDO Tauranga Limited
Level 1, The Hub
525 Cameron Road
PO Box 15660
Tauranga 3144
=================
S I N G A P O R E
=================
GL CONSTRUCTION: Court to Hear Wind-Up Petition on Dec. 18
----------------------------------------------------------
A petition to wind up the operations of GL Construction Pte Ltd
will be heard before the High Court of Singapore on Dec. 18, 2023,
at 10:00 a.m.
Xuan Yu Construction Pte. Ltd. filed the petition against the
company on Nov. 18, 2023.
The Petitioner's solicitors are:
Cairnhill Law LLC
30 Cecil Street
Prudential Tower, #10-05
Singapore 049712
REAL ESTATE: Creditors' Proofs of Debt Due on Jan. 9
----------------------------------------------------
Creditors of Real Estate Credit Strategy Pte. Ltd. are required to
file their proofs of debt by Jan. 9, 2024, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Dec. 1, 2023.
The company's liquidator is:
Ong Kok Yeong David
c/o Tricor Singapore
80 Robinson Road #02-00
Singapore 068898
REENOVA INVESTMENT: Not in Financial Position to Make Exit Offer
----------------------------------------------------------------
The Business Times reports that the liquidator of Reenova
Investment Holding has said the company is "not in a financial
position to make an exit offer" in accordance with SGX listing
rules.
In a bourse filing on Dec. 9, the liquidator, Luke Furler, noted
that Reenova - which had been issued a notice of delisting from SGX
last month - currently does not have sufficient funds to settle its
creditors' claims in full, BT relates.
According to BT, the liquidator added it has written to Reenova's
largest shareholder, who holds 14.7 per cent of the company's total
issued and paid-up share capital on whether it intends to make an
exit offer to the remaining shareholders of the company.
The liquidator has not received a response from the largest
shareholder as at Dec. 9.
About Reenova Investment
Headquartered in Singapore, Reenova Investment Holding Limited, an
investment holding company, engages in the prospection, research,
and mining exploration of rare earth minerals, and provision of
consultancy services in Madagascar, Singapore, and Mauritius. The
company operates through Minerals and Resources, and Investment
Management segments.
Reenova has been on the financial watch list since December 2019,
according to The Business Times. It requested for a trading
suspension in November 2020 as it was unable to demonstrate its
ability as a going concern.
The company was placed under judicial management in August 2022,
and the judicial managers subsequently applied for the winding up
of the company, which was approved by the court in August this
year.
SAKURA FORTE: Creditors' Meetings Set for Dec. 22
-------------------------------------------------
Sakura Forte Central Kitchen Pte Ltd will hold a meeting for its
creditors on Dec. 22, 2023, at 2:30 p.m., at 182 Cecil Street
#30-01 Frasers Tower, in Singapore.
Agenda of the meeting includes:
a. to receive a statement of the Company's affairs together
with a list of creditors and the estimated amounts of their
claims;
b. to appoint Liquidators;
c. to appoint a Committee of Inspection if deemed necessary;
and
d. Any other business.
WEI SIANG: Court to Hear Wind-Up Petition on Dec. 22
----------------------------------------------------
A petition to wind up the operations of Wei Siang Design
Construction Pte Ltd will be heard before the High Court of
Singapore on Dec. 22, 2023, at 10:00 a.m.
Xuan Yu Construction Pte. Ltd. filed the petition against the
company on Nov. 18, 2023.
The Petitioner's solicitors are:
Cairnhill Law LLC
30 Cecil Street
Prudential Tower, #10-05
Singapore 049712
X DIAMOND: Court to Hear Wind-Up Petition on Dec. 29
----------------------------------------------------
A petition to wind up the operations of X Diamond Capital Pte Ltd
will be heard before the High Court of Singapore on Dec. 29, 2023,
at 10:00 a.m.
Tam Chee Chong filed the petition against the company on Dec. 4,
2023.
The Petitioner's solicitors are:
PRP Law LLC
3 Church St
#27-05 Samsung Hub
Singapore 049483
*********
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
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Information contained herein is obtained from sources believed
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thereof are US$25 each. For subscription information, contact
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*** End of Transmission ***