/raid1/www/Hosts/bankrupt/TCRAP_Public/231214.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
Thursday, December 14, 2023, Vol. 26, No. 250
Headlines
A U S T R A L I A
AUSTRALIAN PROPERTY: First Creditors' Meeting Set for Dec. 20
LASER CLINICS: Second Creditors' Meeting Set for Dec. 19
OZWORLD TRAINING: Second Creditors' Meeting Set for Dec. 19
TERRITORY AIR: Second Creditors' Meeting Set for Dec. 19
TOTAL FINANCIAL: Second Creditors' Meeting Set for Dec. 19
C H I N A
COUNTRY GARDEN: Four Senior Execs Take Up to 96% Pay Cuts
I N D I A
ANANDA SAW: ICRA Moves B+ Debt Rating to Not Cooperating Category
ARVIND BG: CARE Lowers Rating on INR7cr LT Loan to B+
BALAJI IMPEX: CRISIL Withdraws B Rating on INR17.5cr LT Loan
BENGALURU METROPOLITAN: ICRA Hikes Rating on INR800cr Loan to BB-
DHARANI HI-TECH: CRISIL Lowers Rating on INR11.5cr Loan to B+
FIELD MOTOR: ICRA Withdraws B+ Rating on INR21.50cr Cash Credit
FIRST RELIABLE: CARE Keeps B- Debt Rating in Not Cooperating
GAGAN AGRO: CARE Keeps D Debt Rating in Not Cooperating Category
GINGER ENTERPRISES: CARE Keeps D Debt Rating in Not Cooperating
HELLO RETAIL: Voluntary Liquidation Process Case Summary
HINDUSTAN CONTROLS: Liquidation Resolution Process Case Summary
HUBTOWN BUS: Insolvency Resolution Process Case Summary
J.D. TALC: CARE Keeps B- Debt Rating in Not Cooperating Category
JAI MATA: CARE Keeps B- Debt Rating in Not Cooperating Category
JET AIRWAYS: NCLAT Reserves Order in Bid Challenging Aircraft Sale
KREYA INFRATECH: CRISIL Keeps D Debt Ratings in Not Cooperating
LARE FIBC: CRISIL Lowers Long/Short Term Ratings to D
MEDIAMAN INFOTECH: Liquidation Resolution Process Case Summary
MONEYGEAR FINTECH: CRISIL Moves B Debt Rating to Not Cooperating
MR JUNEJA: CRISIL Raises Rating on INR20cr Cash Loan to B-
PARAMOUNT MINERALS: CRISIL Moves D Ratings to Not Cooperating
PASWARA PAPERS: CRISIL Withdraws B Rating on INR42.50cr Term Loan
PERFORMIX SOLUTIONS: Voluntary Liquidation Process Case Summary
RAOSAHEBDADA PAWAR: CRISIL Downgrades Long Term Rating to D
RAVINA HEALTH: CRISIL Moves D Debt Ratings to Not Cooperating
ROYAL GARDEN: CARE Reaffirms B Rating on INR8.36cr LT Loan
S. M. CONSTRUCTIONS: CARE Keeps D Debt Rating in Not Cooperating
SAMRAT RUBBERS: Voluntary Liquidation Process Case Summary
SAR SENAPATI: CRISIL Assigns B Rating to INR50cr Term Loan
SOLGEN ENERGY: CRISIL Lowers Long/Short Debt Ratings to D
SPICEJET LTD: Set to Raise INR2,250cr, Cuts Loss in Sept. Qtr
SS CONVENTION: CARE Assigns B Rating to INR30cr LT Loan
SSA TRADERS: Insolvency Resolution Process Case Summary
TANEJA OVERSEAS: CARE Keeps B- Debt Rating in Not Cooperating
UNITED MANUFACTURING: CRISIL Withdraws B+ Rating on INR5.5cr Loan
VINOD FABRICS: CARE Keeps B- Debt Rating in Not Cooperating
ZEE ENTERTAINMENT: High Court to Hear Insolvency Plea vs Promoters
M Y A N M A R
MYANMAR: Economy is Deteriorating as Civil Conflict Intensifies
N E W Z E A L A N D
CBL CORP: Liquidators Get NZD11.6 Million in Court Settlement
CLOUDY BAY: Court to Hear Wind-Up Petition on Feb. 2
FIVE REDLAND: McGrathNicol Appointed as Liquidators
METROPOLIS REAL ESTATE: Creditors' Proofs of Debt Due on Jan. 7
SCAFFOLD ALCHEMY: Court to Hear Wind-Up Petition on Feb. 8
WELLINGTON ENGINEERING: Creditors' Proofs of Debt Due on Jan. 19
S I N G A P O R E
ASTI HOLDINGS: Singapore High Court Rules EGM Invalid
FINAXAR HOLDINGS: Creditors' Meetings Set for Jan. 4
MAISON KAYSER: Commences Wind-Up Proceedings
N.Y.D.C. (WL): Commences Wind-Up Proceedings
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A U S T R A L I A
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AUSTRALIAN PROPERTY: First Creditors' Meeting Set for Dec. 20
-------------------------------------------------------------
A first meeting of the creditors in the proceedings of Australian
Property & Building Inspections Pty Ltd will be held on Dec. 20,
2023, at 11:00 a.m. at Second Floor, 106 Hardware Street in
Melbourne.
Manuel Hanna and Renee Di Carlo of Romanis Cant were appointed as
administrators of the company on Nov. 17, 2023.
LASER CLINICS: Second Creditors' Meeting Set for Dec. 19
--------------------------------------------------------
A second meeting of creditors in the proceedings of Laser Clinics
Australia (Hurstville) Pty Limited has been set for Dec. 19, 2023
at 10:00 a.m. at the offices of Setter Shepard at Level 2, 117
Clarence Street in Sydney and via virtual meeting technology.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Dec. 18, 2023 at 5:00 p.m.
Adam Shepard of Setter Shepard was appointed as administrator of
the company on Nov. 16, 2023.
OZWORLD TRAINING: Second Creditors' Meeting Set for Dec. 19
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Ozworld
Training Pty Ltd has been set for Dec. 19, 2023 at 2:30 p.m. at
Level 5, Suite 6, 350 Collins Street in Melbourne and via virtual
meeting technology.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Dec. 18, 2023 at 4:00 p.m.
Simon Patrick Nelson of BPS Reconstruction and Recovery was
appointed as administrators of the company on Nov. 22, 2023.
TERRITORY AIR: Second Creditors' Meeting Set for Dec. 19
--------------------------------------------------------
A second meeting of creditors in the proceedings of Territory Air
Freight Pty Ltd has been set for Dec. 19, 2023 at 10:00 a.m. via
telephone conference.
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. 18, 2023 at 5:00 p.m.
Stuart Otway and Travis Olsen of SV Partners were appointed as
administrators of the company on Nov. 14, 2023.
TOTAL FINANCIAL: Second Creditors' Meeting Set for Dec. 19
----------------------------------------------------------
A second meeting of creditors in the proceedings of Total Financial
Solutions Australia Pty Ltd has been set for Dec. 19, 2023 at 10:30
a.m. at the offices of O'Brien Palmer at Level 9, 66 Clarence
Street in Sydney and via virtual meeting technology.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Dec. 18, 2023 at 12:00 p.m.
Christopher John Palmer and Liam Bailey of O'Brien Palmer were
appointed as administrators of the company on Nov. 20, 2023.
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C H I N A
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COUNTRY GARDEN: Four Senior Execs Take Up to 96% Pay Cuts
---------------------------------------------------------
Yicai Global reports that four senior executives at Country Garden,
a cash-strapped Chinese property developer, have decided to take
pay cuts of between 67 percent and 96 percent.
Country Garden's Chairwoman Yang Huiyan, President Mo Bin,
Executive Director Yang Ziying, and non-Executive Director Chen
Chong all voluntarily cut their annual salaries to CNY120,000
(USD16,710), the Foshan-based company announced on Dec. 12, Yicai
relays.
Yang Huiyan's and Chen's annual salaries were CNY370,000 each, Mo's
was CNY3 million (USD419,500), and Yang Ziying's was CNY2 million.
Yang Huiyan is the daughter of Country Garden's founder Yang
Guoqiang. Yang Ziying and Chen are also members of Yang Guoqiang's
family.
"My family will definitely spare no effort in supporting the
company," the report quotes Yang Huiyan as saying during an
internal conference. Relevant authorities have conducted
sensitivity analysis and found that Country Garden will not have
insolvency in the coming decade, she noted.
According to Yicai, members of the Yang family, who are Country
Garden's substantial shareholders, have so far granted funds worth
around HKD41 billion (USD5.25 billion) to the company through
loans, increases of shareholding, purchases of bonds, and
distribution of shares. The family has never reduced its
shareholding in the company.
Country Garden fell into a liquidity crisis in the third quarter
and subsequently launched restructurings of domestic and overseas
debts, Yicai says. Most of the firm's domestic debts have already
been rolled over by three years, with the relevant work on overseas
debt restructuring in progress. Country Garden has already reduced
its administrative spending by almost 60 percent from 2021 in an
effort to tackle the liquidity crisis.
In the first 11 months of the year, Country Garden delivered around
500,000 houses, with a total floor area of 60.4 million square
meters. The developer expects to deliver 400,000 houses next year,
the report notes.
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.
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I N D I A
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ANANDA SAW: ICRA Moves B+ Debt Rating to Not Cooperating Category
-----------------------------------------------------------------
ICRA has moved the ratings for the bank facilities of Ananda Saw
Mills in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]B+(Stable)/[ICRA]A4 ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 3.50 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating moved to
Cash Credit 'Issuer Not Cooperating'
category
Short-term– 15.50 [ICRA]A4; ISSUER NOT
Non-fund COOPERATING; Rating moved to
Based 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Ananda Saw Mills, ICRA has been trying to seek information
from the entity so as to monitor its performance, but despite
repeated requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of CRA, a rating view has been taken
on the entity based on the best available information.
Ananda Saw Mills was established in 1982 by Mr. Alagaraja and is
involved in importing sawn timber and round timber logs. It
processes the same into various commercial sizes as per the
requirement of its customer. The firm's saw mills are located in
Tenkasi (Tamil Nadu), and have a cumulative installed capacity of
100 cubic metres/per day.
ARVIND BG: CARE Lowers Rating on INR7cr LT Loan to B+
-----------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Arvind BG. Contractor, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.00 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Revised from
CARE BB-; Stable and moved to
ISSUER NOT COOPERATING category
Short Term Bank 2.00 CARE A4; ISSUER NOT
Facilities COOPERATING Rating moved to
ISSUER NOT COOPERATING category
Rationale and key rating drivers
CARE Ratings Limited (CARE Ratings) has been seeking information
from Arvind. BG. Contractor to monitor the rating vide e-mail
communications dated August 09, 2023, September 13, 2023, and
October 17, 2023, and numerous phone calls. Company has also not
been submitted the No default statements (NDS) for the months of
September and October 2023. However, despite repeated requests, the
firm has not provided the requisite information and NDS for
monitoring the ratings.
In line with the extant SEBI guidelines, CARE Ratings has reviewed
the rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating. The rating on Arvind. BG. Contractor bank facilities will
now be denoted as CARE B+/CARE A4; 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 rating has been revised on account of the absence of latest
information pertaining to the firm, such as operational
information, FY23 financials, liquidity profile, etc., in order to
ascertain its ability to timely repay debt.
Analytical approach: Standalone
Outlook: Stable
Detailed description of the key rating drivers:
At the time of last rating on September 26, 2022, the following
were the rating strengths and weaknesses.
Key weaknesses
* Small scale of operations with moderation in total operating
income in FY22: Besides the small scale of operations, the firm's
total operating income declined by 26.17% in FY22 to INR19.10 crore
from INR25.87 crore. The main reason attributable to such decline
was the administrative delays by the state government department in
approving the firms' requisitions for payments, which led to the
firm postponing its recognition of revenue. However, the firm has
work orders worth INR19.92 crores and L1 orders worth INR1.14 crore
which is expected to be completed before FY23.
* Working capital intensive nature of operations: The firm
predominantly caters to Karnataka state government projects, the
promoter's expertise in the segment has aided the firm in
completion of projects on time and is able to collect receivables
within 60 days. The firm enjoys liberal credit period up to 90 days
due to the long association with suppliers. The operating cycle is
satisfactory at less than 6 days during FY22. However, advance
payments to its subcontractors and retention by the government
stretches the overall liquidity. The average utilization of working
capital limits stands at around 80%.
* Customer and geographic concentration risk: Arvind. BG.
Contractor is a relatively small construction player in Karnataka.
Hence the firm is exposed to geographical concentration risk.
Besides this, the client base of the firm is skewed towards
government departments in Karnataka with firm generating majority
of its income from PWD and Municipal Corporation
* Highly fragmented and competitive civil construction industry
along with tender driven nature of business: The firm is operating
in highly competitive and fragmented industry. It witnesses intense
competition from largely unorganized players as the projects are
tender-based and the revenues are dependent on the firm's ability
to bid successfully for these tenders. This fragmented and highly
competitive industry results into price competition thereby
affecting the profitability margins of the companies operating in
the industry.
* Proprietary nature of constitution: Arvind, being proprietary
firm, is exposed to inherent risk of the promoter's capital being
withdrawn at time of personal contingency and firm being dissolved
upon death. Moreover, proprietary firm business has restricted
avenues to raise capital which could prove a hindrance to its
growth.
* Susceptibility to fluctuation in raw material prices: The basic
input materials for execution of contracts are steel and cement,
the prices of which are highly volatile. Hence, the operating
margin of the firm is exposed to any sudden spurt in the input
material prices along with increase in labor prices being in labor
intensive industry.
Key strengths
* Experience of promoter for more than a decade in Construction
industry: Arvind. BG. Contractor has a track record of more than a
decade in construction industry. Due to long term presence in the
market, the proprietor has established relations with customers and
suppliers which enable the firm to get repeated orders from
existing customers and addition of new customers. The major orders
are received from Municipal departments of Karnataka state. Arvind
BG Contractor has a satisfactory contact completion track record.
Arvind BG contractor is Class-1 PWD contractor and a Class A
contractor with Road and Building Departments (R&B).
* Satisfactory capital structure: The overall gearing ratio
improved to 0.74x as on FY22 from 0.92x in FY21 on account of
increase in net worth by accretion of profit. As on March 31, 2022,
the debt consists of working capital borrowings of INR3.43 crore,
term loans of INR1.57 Cr and other unsecured loans, that generally
comprises of vehicle and machinery loans, of INR1.50 crore. Other
debt coverage indicators also remained stable during FY22 as
reflected by interest coverage ratio of 5.30x (PY: 5.27x).
* Satisfactory profitability margins: PBILDT margin has improved
marginally to 12.80% in FY22 from 11.91% in FY21. PAT margins has
also improved at 5.14% during FY22 from 5.12% in FY21. The major
operating expenses are being absorbed by material purchases, labor
charges and other overhead expenses for execution of work orders.
Also, besides these, the raw materials are procured from local
known suppliers there by reducing the material costs. The client
assigns subcontracting to other players in some cases where it is
profitable to the firm based on the feasibility and location. The
orders being executed by the firm does not contain price escalation
clause.
Bengaluru based, Arvind. BG. Contractor was established in the year
2010 as proprietorship firm by Mr. Arvind Bevinahalli Gowda. The
firm is engaged in the business of civil construction such as lying
of roads and construction of buildings and bridges in the state of
Karnataka and is a registered class "A" contractor with Public
Works Department (PWD) and Road and Building Departments (R&B). The
proprietor Mr. Arvind Bevinahalli Gowda, MBA graduate looks after
the day-to-day operations of the firm.
BALAJI IMPEX: CRISIL Withdraws B Rating on INR17.5cr LT Loan
------------------------------------------------------------
CRISIL Ratings has withdrawn its ratings on the bank facilities of
Balaji Impex (BI) on the request of the company and receipt of a no
objection certificate from its bank. The rating action is in line
with CRISIL Ratings' policy on withdrawal of its ratings on bank
loans.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7 CRISIL B/Stable/Issuer Not
Cooperating (Withdrawn)
Letter of Credit 9 CRISIL A4/Issuer Not
Cooperating (Withdrawn)
Proposed Long Term 17.5 CRISIL B/Stable/Issuer Not
Bank Loan Facility Cooperating (Withdrawn)
Proposed Long Term 1.5 CRISIL B/Stable/Issuer Not
Bank Loan Facility Cooperating (Withdrawn)
CRISIL Ratings has been consistently following up with BI for
obtaining information through letters and emails dated September
11, 2023, among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of BI. This restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on BBPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
BI continues to be 'CRISIL B/Stable/CRISIL A4 Issuer Not
Cooperating'.
BI, based in Mumbai, was set up as a partnership between Mr Ilesh
Gadhia and Mr Mitesh Gadhia (third-generation entrepreneurs) in
2006. It trades in sulphur and soda ash. The Gadhia family has been
in the trading business since 1940s.
BENGALURU METROPOLITAN: ICRA Hikes Rating on INR800cr Loan to BB-
-----------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of
Bengaluru Metropolitan Transport Corporation (BMTC), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 800.00 [ICRA]BB- (Stable); Rating
Fund-based– upgraded from [ICRA]B+ (Stable)
Term loans
Long-term– 65.00 [ICRA]BB- (Stable); Rating
Fund-based– upgraded from [ICRA]B+
(Stable)
Overdraft
Long-term– 435.00 [ICRA]BB- (Stable); Rating
Fund-based– upgraded from [ICRA]B+
(Stable)
Unallocated
Limits
Rationale
The rating upgrade takes into consideration the improvement in the
operating performance of BMTC, which is likely to sustain in the
near term. BMTC reported a nominal operating profit in FY2023
(provisional) against losses in the previous years, owing to
increased passenger load and reduction in the number of loss-making
schedules. Going forward, the passenger load is estimated to
increase further with the introduction of the Shakti Scheme by the
Government of Karnataka (GoK), under which free travel would be
provided by the state-owned road transport corporations (RTCs) to
the women in the state. Moreover, the entire cost towards the
Shakti Scheme would be reimbursed by the state government, which
would provide significant comfort to BMTC's financial health. ICRA
notes a significant rise in BMTC's traffic revenue in FY2023 on
account of increased distance travelled by its buses with high
passenger load, which is estimated to improve further in FY2024.
The rating continues to derive comfort from the strategic
importance of BMTC as a provider of passenger road transport
service in the south-eastern region of Karnataka. As an important
agency of the state government, the corporation enjoys significant
financial flexibility in terms of receiving financial support from
the GoK and raising loans for its regular capex. The rating also
considers continuous and timely release of various
grants/reimbursements, including grants for repayment of some loans
from the GoK, which supported the stretched liquidity position of
BMTC, especially in covering debt service obligations and meeting
critical revenue expenses like payment of salaries and fuel bills.
The rating, however, is constrained by the weak financial profile
of the corporation, as reflected by its low profits and cash
accruals, though the same have improved in FY2023. The
profitability would remain under pressure on account of increasing
fixed costs and high share of loss-making schedules, though the
same reduced marginally in FY2023. BMTC's dependence on
discretionary grants from the GoK and external borrowings to meet
its revenue and capital expenditure requirements have increased
over the years. Further, BMTC has significant repayment obligations
in the near term with limited cash flows from operations, which
will continue to impact its already stretched liquidity position.
Nevertheless, ICRA notes that some of the loans sourced from the
Karnataka Urban Infrastructure Development & Finance Corporation
Limited (KUIDFC) are supported by the GoK, which provides comfort
to the weak financial health of BMTC. Any material deterioration in
BMTC's operational profile owing to low passenger load or high
maintenance costs towards buses could result in a sharp fall in its
revenues and operating profits. Additionally, receiving approval
for waiver or retention of Motor Vehicle Tax (MVT) and timely
receipt of reimbursement towards subsidised travel from the state
government would remain key rating sensitivities. Nevertheless,
ICRA believes that BMTC would continue to enjoy support from the
state government to sustain its operations as passenger transport
is an essential service.
The Stable outlook on the long-term rating reflects ICRA's opinion
that BMTC would continue to derive comfort from its strategic
importance to the state government and regular financial support in
the form of various grants and subsidy reimbursement, which would
help in meeting its critical revenue expenses. However, the
operating profitability would remain under pressure due to
increasing fixed costs and inadequate tariff level.
Key rating drivers and their description
Credit strengths
* Strategic importance to the GoK; financial flexibility derived
from being a state-owned entity: BMTC is wholly owned by the GoK
and is strategically important to the state government, with the
corporation playing a critical role in providing transport services
in the capital city of the state. BMTC receives support from the
GoK in the form of revenue and capital grants to meet its funding
requirements, including grant for servicing specific loans.
* Timely release of funds from the state government: BMTC receives
large revenue grants from the state government in the form of
reimbursement towards subsidised travel for students and other
categories and special grants, which contributed around 40% to its
total operating income in FY2023. While no special grant has been
provisioned by the state government in FY2024, BMTC has started
receiving additional reimbursement against the free travel for
women in the state. Release of all such reimbursements including
grants for repayment of specific term loans helps the corporation
in servicing its debt obligations in a timely manner and manage its
stretched liquidity position.
Credit challenges
* Weak financial profile as characterised by low profitability due
to high loss-making schedules: The corporation reported a nominal
operating profit in FY2023 against large losses posted in the past
years. The improvement can be attributed to increased passenger
load and reduction in loss-making schedules. However, the
percentage of loss-making schedules remains high at 96%, which
would result in low profits and cash accruals for the corporation,
going forward. Consequently, the debt coverage metrics are likely
to remain under pressure in the near term, albeit with some
improvement over FY2023. Nevertheless, revenue support from the GoK
helped BMTC meet its critical fixed expenses (salaries and pension
to employees) and repayment of some term loans. Despite
continuation of such timely support from the GoK, BMTC's liquidity
position is likely to remain stretched in the near term on account
of high fixed costs and lack of adequate tariff revision.
* Increasing dependence on GoK's discretionary grants and external
borrowings in the absence of adequate tariff revision: BMTC's
dependence on discretionary grants from the GoK to meet its revenue
as well as capital expenditure and partial repayment requirements
has increased over the years. Further, the external borrowings in
the form of long-term loans have also been availed by the entity to
meet its capex requirements. While the cost of operations has been
increasing on the back of increased employee salary and high fuel
price, the corporation has not been able to revise its tariff
adequately. In the absence of regular and adequate tariff revision,
BMTC's cash flow mismatch would continue, increasing its dependence
on discretionary grants and fresh loans.
* Large repayments related to capex in the near term and
outstanding liabilities: The corporation has no plans of taking any
new loan and wants to repay the existing loans with the support
from the Government in the form of grants/subsidies. The
corporation is planning to purchase around 450 new buses in the
current year, out of which the corporation has augmented 20 diesel
buses and 120 electric buses in 7M FY2024. The remaining 310 buses
(electric) will be augmented by the end of FY2024. While the state
government has sanctioned a capital grant of INR180.0 crore, the
balance will have to be funded by BMTC from its own accruals.
Further, the corporation has large liabilities related to arrears
of the last pay revision, which cannot be paid without the support
from the state government. ICRA believes that improvement in the
operating performance, as reflected by a sustained reduction in the
share of loss-making schedules and high passenger load, would be
critical to achieve adequate profits and cash accruals.
Liquidity position: Stretched
The liquidity position of the corporation continues to remain
stretched on account of limited cash accruals and large repayments
due in the near term. While the corporation is likely to generate
cash flows from operations of more than INR150.0 crore in FY2024,
it would be inadequate to cover an estimated annual debt repayment
of INR255.52 crore. ICRA notes that the corporation assigns the
highest priority to debt servicing over other expenditure.
Available funds would be adequate to support its debt servicing
obligations. However, the corporation would continue to stretch its
payables, leading to an increase in its current liabilities.
Moreover, the company's ability to defer the payment of MVT to the
GoK or an approval for exemption of the said tax for FY2024 will
provide some flexibility. ICRA notes that any further deviation in
the operational cash flows would lead to a tighter liquidity
position for BMTC in the medium term, impacting debt servicing.
Rating sensitivities
Positive factors – ICRA could upgrade BMTC's rating if there is
an improvement in its profitability and debt protection metrics on
a sustained basis.
Negative factors – ICRA could downgrade the rating if there is a
significant deterioration in BMTC's operating performance and a
decline in its profits and cash accruals on a sustained basis. A
further weakening in its liquidity and debt protection metrics
could also trigger a rating downgrade. Any delay in receiving
adequate support from the GoK to meet fund shortfalls could impact
the rating.
BMTC was established in August 1997 as an independent entity under
the Road Transport Corporation Act, 1950 and as a charitable trust
for providing public transport system to the commuters in and
around Bengaluru city. BMTC was carved out from Karnataka State
Road Transport Corporation by combining two divisions of Bangalore
Transport Service (BTS; BMTC has been formed by combining Bangalore
Transport Service North and BTS South with effect from August 1997.
BMTC's jurisdiction extends to around 25 km in all the directions
from the Bruhat Bengaluru Mahanagara Palike (the urban local body
for the city of Bengaluru) boundaries.
As on March 31, 2023, with a fleet strength of 6,688, BMTC is one
of the largest among the Urban State Road Transport Undertakings
(SRTUs) in the country. It operates 5,557 schedules daily through
49 depots, 2 central workshops and 29,457 personnel.
DHARANI HI-TECH: CRISIL Lowers Rating on INR11.5cr Loan to B+
-------------------------------------------------------------
CRISIL Ratings has downgraded its ratings on the bank facilities of
Dharani Hi-Tech Projects Private Limited (DHPPL) to 'CRISIL
B+/Stable/CRISIL A4' from 'CRISIL BB-/Stable/CRISIL A4+'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1 CRISIL A4 (Downgraded from
'CRISIL A4+')
Overdraft Facility 11.5 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
Working Capital 0.5 CRISIL B+/Stable (Downgraded
Term Loan from 'CRISIL BB-/Stable')
The downgrade reflects decline in the firm's liquidity with low
cash accruals and fully utilized bank lines. Margins declines in
fiscal 2023, leading to decline in cash accruals and reduced
cushion in accruals to repayment. Working capital cycle has
stretched with increased debtor cycle, leading to full utilisation
of bank lines. Steady increase in revenue and operating margin
and, hence, improvement in cash accrual will remain key
monitorable.
CRISIL ratings on the bank facilities of DHPPL continues to reflect
the promoters' extensive experience in the civil construction
industry. This ratings strength is partially offset by the modest
scale of operations in the civil construction industry and average
financial risk profile
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations in a fragmented industry: DHPPL's
scale of operations remains modest as indicated by operating income
of INR29.96 crores in fiscal 2023.
* Sustained improvement in scale of operations remain a key rating
sensitivity factor over the medium term.
* Average financial risk profile: The company's capital structure
is leveraged, marked by gearing and TOL/TNW of 1.33 and 1.60 times
as on 31st March 2023. Debt protection metrics is average with
interest coverage and NCAATD at 2.20 times and 0.13 times in
FY2023. The financial risk profile of the company is expected to
remain at similar levels over the medium term.
Strength:
* Extensive experience of the promoter in civil construction
Industry: DHPPL's promoters have been executing civil contracts for
more than 15 years and have established relationships with various
government bodies like highways department, Public Works Department
(PWD) and various municipalities leading to repeat orders from
these customers.
Liquidity: Stretched
Bank limit utilization is high at around 101.12 percent for the
past twelve months ended September 2023. Estimated Net Cash
accruals of over INR2.80 Crores and INR3.7 Crores in FY24 & FY25
are expected to be sufficient against term debt obligation of INR
1.1 crore in FY24 and INR2.3 0Crores in FY25. Current ratio is
healthy at 1.59 times on March31, 2023.
Promoters are likely to support in form of USL in case of
exigencies.
Outlook: Stable
CRISIL Ratings believes DHPPL will continue to benefit from the
extensive industry experience of its promoters.
Rating Sensitivity factors
Upward factors:
* Significant improvement in scale of operations while maintaining
margins above 10%, leading to net cash accruals over 2.5 Crores.
* Sustained improvement in working capital cycle, leading to
betterment in liquidity profile of the company.
Downward factors:
* Decline in revenue or profitability by less than 10%
* Further Stretch in working capital cycle or deterioration in
liquidity profile of the company.
* Large debt funded capital expenditure that weakens capital
structure
DHPPL, set up in 1995, was re-constituted as a private limited
company in 2010. It operates in the civil construction industry.
The company's day-to-day operations are managed by Mr. S Kamaraj
and Mr. Senthamil Selvan.
FIELD MOTOR: ICRA Withdraws B+ Rating on INR21.50cr Cash Credit
---------------------------------------------------------------
ICRA has withdrawn the ratings assigned to the bank facilities of
Field Motor Private Limited at the request of the company and based
on the No Objection Certificate (NOC) received from its bankers.
However, ICRA does not have information to suggest that the credit
risk has changed since the time the rating was last reviewed.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 21.50 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Withdrawn
Cash Credit
Long Term- 1.09 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Withdrawn
Term Loan
Incorporated in 2001, FMPL is engaged in the automobile dealership
business of Toyota Kirloskar Motor Private Limited and has three
showrooms with 3S facilities (Sales-Services-Spares) in Cuttack,
Rourkela and Sambalpur, Odisha. The company also has two centres
with 1S facility (Sales) in Bhubaneswar and Angul, both in Odisha.
FIRST RELIABLE: CARE Keeps B- Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of First
Reliable Industries (FRI) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 13.17 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 15,
2022, placed the rating(s) of FRI under the 'issuer
non-cooperating' category as FRI 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. FRI
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).
First Reliable Industries (FRI) is a partnership firm established
in November-2016. It has set up a unit for manufacturing of
Polypropylene (PP) and High-Density Polyethylene (HDPE) based woven
sack bags and fabrics which find application in packaging for
various industries like chemicals, fertilizers etc. The
manufacturing unit is located at Khanna, Punjab.
GAGAN AGRO: CARE Keeps D Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Gagan Agro
and Rice Exporters (GARE) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 19.00 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 9,
2022, placed the rating(s) of GARE under the 'issuer
non-cooperating' category as GARE 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. GARE
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated September 25, 2023, October 5, 2023, October 15,
2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Gagan Agro and Rice Exporters was established as a partnership firm
in 2014 and it is currently being managed by Mr. Sumit Singla, Mr.
Rahul Garg and Mrs. Amandeep Kaur. The firm is engaged in
processing of paddy at its manufacturing facility located in
Sangrur, Punjab. It is also engaged in trading of rice.
GINGER ENTERPRISES: CARE Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Shree
Ginger Enterprises Limited (SGEL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 34.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 27.00 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 11,
2022, placed the rating(s) of SGEL under the 'issuer
non-cooperating' category as SGEL 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. SGEL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated August 27, 2023, September 6, 2023, September
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).
Shree Ginger Enterprises Limited (SGEL) formerly known as Ginger
Enterprises Limited was incorporated in 2002 and promoted by Mr
Sanjay Kumar Tayal, presently managed by Mr Keshav Tayal. The
company is engaged in the manufacturing of Partially Oriented Yarn
(POY), Polyester Texturized Yarn (PTY), knitted fabric and
readymade garments. The company has manufacturing capacities of POY
(50 TPD), FDY (15 TPD), DTY (70 TPD) and knitting (1600 TPA)
located at Silvassa. The two garment manufacturing units of the
company are located at Dombivli.
HELLO RETAIL: Voluntary Liquidation Process Case Summary
--------------------------------------------------------
Debtor: Hello Retail India Private Limited
F-103, Ashish Commercial Complex
Mayur Vihar Phase-I
Delhi 110091
India
Liquidation Commencement Date: November 23, 2023
Court: National Company Law Tribunal, New Delhi Bench
Insolvency professional: Sunil Kumar Agrawal
Interim Resolution
Professional: Sunil Kumar Agrawal
904, GF, Sector 7C
Faridabad 121006
NCR, New Delhi
Mobile: 91-939703648
Tel: 0129-4881648
E-mail: vliqhelloripl2023@gmail.com
aagarwalski21@yahoo.com
Last date for
submission of claims: December 23, 2023
HINDUSTAN CONTROLS: Liquidation Resolution Process Case Summary
---------------------------------------------------------------
Debtor: Hindustan Controls & Equipment Private Limited
P-16 & 16/1 Kasba Industrial Estate Phase-I
P.O. Haltu, Kolkata
West Bengal, India
700107
Liquidation Commencement Date: November 22, 2023
Court: National Company Law Tribunal, Kolkata Bench
Date of closure of
insolvency resolution process: November 20, 2023
Insolvency professional: Anil Kumar Dubey
Interim Resolution
Professional: Anil Kumar Dubey
Meridian Splendora
Tower II, Flat No. 4F
9A Umakant Sen Lane, Birpara
Kolkata 700030
E-mail: anil@mandaassociates.in
- and -
13 Crooked Lane
Ajit Sen Bhawan, 4th floor
Kolkata 700069
E-mail: liquidation.hcepl@gmail.com
Mobile: 919883039240
Last date for
submission of claims: December 21, 2023
HUBTOWN BUS: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Hubtown Bus Terminal (Vadodara) Private Limited
Registered address:
Makarpura Bus Depot
Nr. G.I.D.C.
Opp. Toyota Show Room
Makarpura Main Road
Vadodara, Gujarat
India 390010
Insolvency Commencement Date: November 24, 2023
Court: National Company Law Tribunal, Ahmedabad Bench
Estimated date of closure of
insolvency resolution process: May 22, 2024
Insolvency professional: Vinod Tarachand Agrawal
Interim Resolution
Professional: Vinod Tarachand Agrawal
VCAN Resolve IPE LLP
204, Wall Street I
Nr Gujarat College
Ellis Bridge
Ahmedabad 380006
E-mail: cirp.hubtown@gmail.com
ca.vinod@gmail.com
Last date for
submission of claims: December 8, 2023
J.D. TALC: CARE Keeps B- Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of J.D. Talc
(JT) continue to remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.16 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 16,
2022, placed the rating(s) of JT under the 'issuer non-cooperating'
category as JT 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. JT continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
October 2, 2023, October 12, 2023, October 22, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Haldwani (Nainital) –based J.D. Talc (JD) is a partnership firm
established in 2013 by Mr. Rajendra Singh Daffoti. JD is engaged
into micronizing and supply of soap lumps and powder and operates
from its ISO 9001:2015 certified facility. These products have
application in making of paper, paints and coating, polyester
putties, pharmaceuticals, plastics and rubber, cosmetics.
JAI MATA: CARE Keeps B- Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Jai Mata
Di Ginning and Pressing Factory (JMDGPF) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.61 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 8,
2022, placed the rating(s) of JMDGPF under the 'issuer
non-cooperating' category as JMDGPF 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.
JMDGPF 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).
JMGPF is a Jalgaon based, proprietorship firm, established by Mr.
Gopal Baburao Gangtire in 2004. The entity is engaged in the
business of cotton ginning and pressing at its manufacturing
facility located at Jalgaon Maharashtra.
JET AIRWAYS: NCLAT Reserves Order in Bid Challenging Aircraft Sale
------------------------------------------------------------------
Livemint.com reports that the National Company Law Appellate
Tribunal (NCLAT) on Dec. 12 reserved judgment on a plea by Jet
Airways' owner Jalan Kalrock Consortium (JKC), challenging the sale
of the airline's four aircraft to Malta's Ace Aviation.
According to Livemint.com, JKC had challenged the National Company
Law Tribunal (NCLT) order, which permitted the sale, asking the
airline's monitoring committee to proceed with it.
During the hearing, counsel for JKC argued that the NCLT's order
was beyond its jurisdiction, Livemint.com relates. JKC disputed the
effective date of the resolution plan's implementation and insisted
the sale should be halted until then. Once implemented, the sale
process should go to the consortium rather than the airline's
monitoring committee.
Meanwhile, the airline's workers oppose the sale, citing unpaid
gratuities and provident fund dues, fearing the sale would harm
their interests, Livemint.com reports. The former Resolution
Professional clarified that sale proceeds would go into escrow for
equitable distribution.
Lenders, however, advocate the sale, stressing the urgency due to
mounting airport dues and wastage of public funds, Livemint.com
says. They informed the tribunal that they have incurred about
INR900 crore in airport dues, emphasizing the need for quick
action.
On September 29, JKC said it had fulfilled the financial commitment
of INR350 crore and the new promoters are determined to resume
operations of the airline in 2024.
Livemint.com relates that JKC had completed the transfer of money
to the lenders as per NCLAT's directive instruction. According to
the payment schedule, approved by the NCLAT on August 28, JKC was
required to pay INR200 crore to the lenders. The NCLAT had
instructed them to pay the due amount of INR350 crore by 30
September, with INR150 crore to be encashed from the performance
bank guarantee.
However, lenders voiced concerns about the consortium's source of
funding, hinting at potential money laundering on October 4,
Livemint.com states.
About Jet Airways
Based in Mumbai, India, Jet Airways (India) Limited was one of
India's top airlines founded by Naresh Goyal. It provided
passenger and cargo air transportation services as well aircraft
leasing services. It operated flights to 66 destinations in India
and international countries.
Jet Airways on April 17, 2019, halted all flight operations after
its lenders rejected its plea for emergency funds.
On June 20, 2019, the National Company Law Tribunal (NCLT), Mumbai
Bench, accepted an insolvency petition against Jet Airways filed by
its creditors as they attempt to recover some of their dues.
Ashish Chhawchharia of Grant Thornton India has been named as the
resolution professional in the case. Law firm Cyril Amarchand
Mangaldas represented the interests of the lenders' consortium,
according to a Reuters report.
Creditors have filed claims worth INR30,907 crore, according to
Financial Express. The RP has so far admitted claims worth over
INR14,000 crore.
In October 2020, the airline's Committee of Creditors (CoC)
approved the revival plan submitted by the consortium of
Dubai-based Murari Lal Jalan and the UK's Kalrock Capital.
In 2021, the NCLT approved the Jalan-Kalrock consortium's
resolution plan for the troubled carrier.
KREYA INFRATECH: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on the bank facilities of Kreya
Infratech Private Limited (KIPL) continue to be 'CRISIL D/CRISIL D
Issuer Not Cooperating'.
CRISIL Ratings has withdrawn its ratings on INR.3 crore of cash
credit facility, INR.2 crore of proposed cash credit limit
facility, INR.2 crore of proposed bank guarantee facilty on the
request of the company and receipt of a no due certificate from its
bank. The rating action is in line with CRISIL Ratings' policy on
withdrawal of its ratings on bank loans.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 6 CRISIL D (ISSUER NOT
COOPERATING)
Cash Credit 3 CRISIL D (ISSUER NOT
COOPERATING; Rating Withdrawn)
Proposed Bank 2 CRISIL D (ISSUER NOT
Guarantee COOPERATING; Rating Withdrawn)
Proposed Cash 2 CRISIL D (ISSUER NOT
Credit Limit COOPERATING; Rating Withdrawn)
CRISIL Ratings has been consistently following up with KIPL for
obtaining information through letters and emails dated July 28,
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 KIPL. This restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on KIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on the bank facilities
of KIPL continues to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
CRISIL Ratings has withdrawn its ratings on INR.3 crore of cash
credit facility, INR.2 crore of proposed cash credit limit
facility, INR.2 crore of proposed bank guarantee facilty on the
request of the company and receipt of a no due certificate from its
bank. The rating action is in line with CRISIL Ratings' policy on
withdrawal of its ratings on bank loans.
Incorporated in Nov 2015, KIPL is involved in engineering and
contract work with experience in civil and structural work
contracts specialized in, Textile Mills, Export Houses, Hotels,
Institutes, Commercial Buildings, Schools, etc. The company has pan
India presence and has delivered projects in 14 Indian States
LARE FIBC: CRISIL Lowers Long/Short Term Ratings to D
-----------------------------------------------------
CRISIL Ratings has downgraded its ratings on the bank facilities of
Lare Fibc And Energies Private Limited (LFEPL) to 'CRISIL D/CRISIL
D Issuer Not Cooperating' from 'CRISIL B/Stable/CRISIL A4 Issuer
Not Cooperating' due to delay in debt servicing debt obligation
which has led to account becoming NPA.
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 LFEPL for
obtaining information through letters and emails dated February 10,
2023 and February 15, 2023, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of NIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on LFEPL
is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, CRISIL Ratings has
downgraded its ratings on the bank facilities of NIPL to 'CRISIL
D/CRISIL D Issuer Not Cooperating' from 'CRISIL B/Stable/CRISIL A4
Issuer Not Cooperating' due to delay in debt servicing debt
obligation which has led to account becoming NPA.
LFEPL (formerly known as Tech Sun Energies Pvt Ltd) was
incorporated in 2012. The company primarily provided operations and
maintenance services in power related industries and petrochemicals
industries. In fiscal 2018, it diversified into manufacturing
flexible intermediate bulk containers (FIBCs) such as jumbo bags,
container liners and small sacks and started its operations in
January 2020. Its manufacturing facility is in Tirunelveli, Tamil
Nadu. The company is promoted by Mr Mayilvel Ponnusamy and Ms N
Ponlakshmi.
Status of non cooperation with previous CRA
LFEPL has not cooperated with Acuite Ratings and Research Limited,
which led to its classification as 'issuer not cooperative' vide
release dated July 14, 2021. The reason provided by Acuite is
non-furnishing of information for monitoring of ratings.
MEDIAMAN INFOTECH: Liquidation Resolution Process Case Summary
--------------------------------------------------------------
Debtor: Mediaman Infotech Private Limited
Flat No. 104, Building No. 2
B Wing, Sankalp CHSL
Near Mans Hotel
Andheri East, Mumbai City
Maharashtra, India
400059
Liquidation Commencement Date: November 24, 2023
Court: National Company Law Tribunal, Bench 1, Mumbai
Date of closure of
insolvency resolution process: November 9, 2023
Insolvency professional: Mr. Bhaskar Gopal Shetty
Interim Resolution
Professional: Mr. Bhaskar Gopal Shetty
C-77, Shanti Shoping Centre
Mira Road East 401107
Thane District, Maharashtra
E-mail: cabgshetty@gmail.com
mediaman.liquidation@gmail.com
Last date for
submission of claims: December 27, 2023
MONEYGEAR FINTECH: CRISIL Moves B Debt Rating to Not Cooperating
----------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of
Moneygear Fintech Private Limited (MFPL) to 'CRISIL B/Stable Issuer
Not Cooperating'
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 7 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with Moneygear
Fintech Private Limited (MFPL) for getting information. CRISIL
Ratings requested cooperation and information from the issuer
through its letter dated November 8, 2023. However, the issuer has
continued to be 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-operations by a rated entity may be a result of deterioration in
its credit 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 MFPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MFPL
is consistent with 'Assessing Information Adequacy Risk'.
MFPL, is a Bangalore based NBFC. The company started its operations
by January 2021. The company received its NBFC license in October
2020. As on March 31, 2022, the company operates in single district
of Bangalore and has been able to disburse loans to around 200
borrowers.
MR JUNEJA: CRISIL Raises Rating on INR20cr Cash Loan to B-
----------------------------------------------------------
CRISIL Ratings has upgraded its ratings on the bank loan facilities
of MR Juneja Iron & Steel Private Limited (MRJPL) to 'CRISIL
B-/Stable/CRISIL A4' from 'CRISIL D/CRISIL D'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 20 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
Letter of Credit 10 CRISIL A4 (Upgraded from
'CRISIL D')
The ratings upgrade reflects a track record of timely repayment of
the debt obligation on account of improved liquidity.
The ratings reflect the susceptibility of operating margin to
volatility in raw material prices and the company's weak financial
profile. These weaknesses are partially offset by the extensive
experience of the promoters in the steel industry.
Key Rating Drivers & Detailed Description
Weaknesses:
* Vulnerability to cyclicality in the end-user segment: Scale and
profitability are linked to the fortunes of the inherently cyclical
steel industry, which has a strong correlation with overall growth
in gross domestic product. Operating performance will remain
susceptible to volatility in commodity prices and offtake by the
key end-user sector.
* Below-average financial profile: MRJPL has average financial
profile, as indicated by gearing of 4.61 times and total outside
liabilities to adjusted networth (TOLANW) ratio of 5.97 times as on
March 31, 2023, which are expected to be 4.3 times and 6 times,
respectively, as on March 31, 2024. MRJPL's debt protection metrics
have also been weak because of high gearing and low accrual from
operations. The interest coverage and net cash accrual to total
debt ratios were 0.87 time and 0.01 time, respectively, for fiscal
2023 and are expected to remain weak over the medium term as well.
Strength:
* Extensive industry experience of the promoters: The promoters
have experience of over three decades in the steel industry. This
has given them a strong understanding of the market dynamics and
enabled them to establish healthy relationships with suppliers and
customers.
Liquidity: Stretched
The bank limit utilisation was high at 96.06% on average for the 12
months through October 2023. Cash accrual is expected to be over
INR 0.6 crore in fiscal 2024 which is insufficient against term
debt obligation of INR 1.5 crore over the medium term. However, the
promoters are likely to extend support in the form of equity and
unsecured loans to meet the working capital requirement and debt
obligation. Unsecured loans from the promoters and the group
company was INR 25.97 crore as on March 31, 2023 (INR3.21 crore as
on March 31, 2022). The current ratio was moderate at 1.23 times as
on March 31, 2023.
Outlook: Stable
CRISIL Ratings believes MRJPL will continue to benefit, over the
medium term, from its longstanding relationships with principals
and experience of the management to mitigate the inherent risk in
the trading business.
Rating Sensitivity Factors
Upward factors
* Stable scale of operations and sustenance of operating
profitability leading to net cash accrual of more than INR 1.5
crore
* Improvement in the working capital cycle while ensuring
improvement in the liquidity profile
Downward factors
* Decline in revenue by more than 30% and profitability below 1%,
resulting in lower-than-expected net cash accrual
* Stretched working capital cycle, leading to weak liquidity
Incorporated in 1990, MRJPL trades in sponge iron, billets, ingots
and thermo mechanically treated (TMT) bars, among others. The
company has four offices in Delhi; Ludhiana, Punjab; and Ghaziabad
and Muzaffarnagar in Uttar Pradesh. It is promoted by Mr Ravindra
Juenja and his son, Mr Saurabh Juneja.
PARAMOUNT MINERALS: CRISIL Moves D Ratings to Not Cooperating
-------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of
Paramount Minerals and Chemicals Limited (PMCL) to 'CRISIL D/CRISIL
D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.75 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Bank Guarantee 2.25 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Bill Discounting 15 CRISIL D (ISSUER NOT
under Letter COOPERATING; Rating Migrated)
of Credit
Cash Credit 9 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Cash Credit 8 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Cash Credit 3.25 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Letter of Credit 20.22 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Letter of Credit 17 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Letter of Credit 3 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Long Term Loan 7.53 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Packing Credit in 14 CRISIL D (ISSUER NOT
Foreign Currency COOPERATING; Rating Migrated)
Proposed Long Term 25 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with PMCL for
obtaining information through letter and email dated November 9,
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 PMCL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PMCL
is consistent with 'Assessing Information Adequacy Risk'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL Ratings has migrated the rating on
bank facilities of PMCL to 'CRISIL D/CRISIL D Issuer not
cooperating'.
Incorporated in 1975 and promoted by the Poddar and Sanghai groups,
PMCL manufactures OBAs and speciality chemicals used in the
textiles, paper and detergent industries. Its products are sold
under the Parawhite and Dolomass brands. The manufacturing facility
is in Ambernath, Maharashtra.
PASWARA PAPERS: CRISIL Withdraws B Rating on INR42.50cr Term Loan
-----------------------------------------------------------------
Due to inadequate information, CRISIL Ratings, in line with SEBI
guidelines, had migrated the rating of Paswara Papers Limited (PPL)
to 'CRISIL B/Stable Issuer Not Cooperating'. CRISIL Ratings has
withdrawn its rating on bank facility of PPL following a request
from the company and on receipt of a 'no dues certificate' from the
banker. Consequently, CRISIL Ratings is migrating the rating on
bank facilities of PPL to 'CRISIL B/Stable' from 'CRISIL B/Stable
Issuer Not Cooperating. The rating action is in line with CRISIL
Ratings' policy on withdrawal of bank loan ratings.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 15.73 CRISIL B/Stable (Migrated from
'CRISIL B/Stable ISSUER NOT
COOPERATING'; Rating Withdrawn)
Term Loan 42.50 CRISIL B/Stable (Migrated from
'CRISIL B/Stable ISSUER NOT
COOPERATING'; Rating Withdrawn)
PPL incorporated in 1980, is engaged in manufacturing of Single and
Multi-layer Kraft paper with 32 burst factor (BF) and paper board
that finds application in packaging industry. The manufacturing
unit is located in Meerut, Uttar Pradesh. The company is managed by
Aggarwal family.
PERFORMIX SOLUTIONS: Voluntary Liquidation Process Case Summary
---------------------------------------------------------------
Debtor: Performix Solutions Private Limited
56-57, Hadapsar Industrial Estate
Pune, Maharashtra
India 411013
Liquidation Commencement Date: November 24, 2023
Court: National Company Law Tribunal, Bangalore Bench
Insolvency professional: Ganesh Panduranga Pai
Interim Resolution
Professional: Ganesh Panduranga Pai
No. 68, 6B, 6th floor
Chitrapur Bhawan, 8th Main
15th Cross Malleshwaram
Bangalore 560055
E-mail: pragnya.cas@gmail.com
Tel: 9845666596
080-23565641
Last date for
submission of claims: December 24, 2023
RAOSAHEBDADA PAWAR: CRISIL Downgrades Long Term Rating to D
-----------------------------------------------------------
Due to inadequate information and in line with the guidelines of
the Securities and Exchange Board of India, CRISIL Ratings had
migrated the ratings on the bank facilities of Raosahebdada Pawar
Ghodganga Sahakari Sakhar Karkhana Ltd (RPGSSK) to 'CRISIL
B/Stable/CRISIL A4 Issuer Not Cooperating'. However, the management
has subsequently started sharing the requisite information
necessary for carrying out a comprehensive review of the ratings.
Consequently, CRISIL Ratings is downgraded the ratings to 'CRISIL
D/CRISIL D'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Rating - CRISIL D (Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
Short Term Rating - CRISIL D (Downgraded from
'CRISIL A4 ISSUER NOT
COOPERATING')
The ratings reflect delay by the company in servicing debt because
of weak liquidity. The ratings also reflect a below-average
financial risk profile, and susceptibility to regulatory changes
and cyclicality inherent in the sugar industry. These weaknesses
are partially offset by promoters' extensive experience and
moderate operating efficiency backed by integrated operation.
Key Rating Drivers & Detailed Description
Weakness:
* Delays in reservicing debt obligations for term loan: The firm
has delays in reservicing its term debt obligations in the month of
June 2023 as a result of poor liquidity.
* Below-average financial risk profile: Sizeable working capital
borrowings and large term loans contracted for capital expenditure
have led to high gearing at 39.67 times as on March 31, 2023.
Furthermore, debt protection metrics remain below-average as
reflected in interest coverage ratio
* Susceptibility to regulatory changes and cyclicality inherent in
the sugar industry: The sugar manufacturing industry is highly
regulated and is also exposed to risks related to seasonality in
sugarcane production. These factors have impact on the scale and
profitability.
Strengths:
* Promoters' experience: The promoter family has been in the sugar
industry for about three decades has developed healthy relations
with local farmers. Benefits from their experience should continue
over the medium term.
* Moderate operating efficiency backed by integrated operation: The
company has an integrated operation with capacities of 2,500 tonne
sugar crushed per day (tpd) and distillery unit with 30 kilo litres
per day (klpd) for alcohol. It has also set up a co-gen unit with
capacity of 20.5 megawatt during fiscal 2018 and is likely to be
operational with current sugar season. This helps to face downturns
in the industry as revenue is more stable, unlike for other
non-integrated players.
Liquidity: Poor
The liquidity profile of the company is weak, due to large working
capital requirements and low cash accruals. This has also led to
delays in servicing the debt.
Rating Sensitivity factors
Upward factors
* Track record of timely servicing of debt for consecutive 90 days
* Improvement in working capital cycle and financials risk profile
RPGSSK was incorporated in 1990 as a co-operative society by the
late Mr Raosahebdada Pawar. Its plant is in Shirur (Maharashtra)
and has installed sugar cane crushing capacity of 2500 tcd and a
distillery with installed capacity of 30 klpd. The society recently
set up a co-generation plant, with capacity of 20.5 MW.
RAVINA HEALTH: CRISIL Moves D Debt Ratings to Not Cooperating
-------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of Ravina
Health Care Private Limited (RHCPL) to 'CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2.5 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Long Term 6.5 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
Term Loan 16 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with RHCPL for
obtaining information through letter and email dated November 10,
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 RHCPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RHCPL
is consistent with 'Assessing Information Adequacy Risk'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL Ratings has migrated the rating on
bank facilities of RHCPL to 'CRISIL D Issuer not cooperating'.
Incorporated in 2011, RHCPL operates a 150-bed hospital in
Chennai.
ROYAL GARDEN: CARE Reaffirms B Rating on INR8.36cr LT Loan
----------------------------------------------------------
CARE Ratings has reaffirmed ratings on certain bank facilities of
Royal Garden Resort (RGR), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 8.36 CARE B; Stable Reaffirmed
Rationale and key rating drivers
The reaffirmation of rating assigned to the long-term bank
facilities of RGR takes into account small scale of operations
albeit growth momentum in revenues in FY23 (refers to the period
from April 1 to March 31) and H1FY24. The ratings continue to
remain tempered by low net worth, leveraged capital structure, weak
debt coverage indicators and stretched liquidity. The rating also
factors the firm's presence in a fragmented nature of industry with
seasonality associated with business as well as the partnership
constitution of the business. The rating, however, derives strength
from established track record of operations along with experienced
promoters and comfortable operating cycle.
Rating sensitivities: Factors likely to lead to rating actions
Positive Factors
* Continuous increase the occupancy level thereby increases the
scale of operations with total operating income exceeding INR15
crore with tangible networth base exceeding INR5 crore on a
sustained basis.
* Improvement in the capital structure with overall gearing
reaching below 1.5x on a sustained basis.
* Improvement in the debt coverage metrics with interest coverage
exceeding 3.00x and total debt to gross cash accruals reaching
below 5x on a sustained basis.
Negative Factors
* Any debt funded capex leading the overall gearing above 1x on
sustained basis
* Interest coverage below 5x times on sustained basis
Analytical approach: Standalone
Outlook: Stable
Stable outlook reflects that the rated entity is likely to maintain
its growth momentum as envisaged that shall enable it to maintain
the envisaged operating performance over the near to medium term.
Detailed description of the key rating drivers
Key weaknesses
* Small scale of operations albeit improvement in FY23: The Total
operating income (TOI) of the firm significantly improved to 8.54
crores in FY23 as compared to INR 2.39 crores in FY22 mainly due to
ease of travel restrictions. Further, there is a significant
improvement in income from food sales coupled with water park.
During FY23, the company outsourced the hotel business and gets the
fixed revenue of INR 9 lakhs per month, in addition also they
receive 1.5 lakh per month from Jalaram Kathiawad (Restaurant) and
0.50 lakhs per month from Garment shop. During H1FY24, the firm has
reported TOI of INR 5.84 crores. Nevertheless, the overall scale of
operations stood small with low tangible networth of INR1.36 crore
as on March 31, 2023 which limits the financial flexibility of the
firm to a greater extent.
* Fluctuating PBILDT margins: RGR's PBILDT margin has improved to
21.18% in FY23 as compared to 10.38% in FY22 these has led to
improvement in gross cash accruals of INR1.61 crores in FY23 as
compared to INR0.23 crores in FY22. Further PAT margin turned
positive at 11.27% in FY23 as compared to net loss in FY22.
* Leveraged capital structure and weak debt coverage indicators:
The capital structure of RGR stood leveraged marked by low networth
coupled with high dependence on external bank borrowings.
Overall gearing stood at 7.93x in FY23 as compared to 9.00x in FY22
owing to marginal reduction in debt levels. Debt coverage
indicators remain weak, although improved on y-o-y basis, marked by
total debt to gross cash accruals (TDGCA) at 6.69x in FY23 as
compared to 48.91x in FY22 owing to improvement in GCA. Further,
interest coverage indicators deteriorated to 11.42x in FY23 as
compared to 17.86x in FY22 owing to increase in interest expenses.
* Partnership nature: Due to RGR being a partnership firm, it has
limited ability to raise capital as it has restricted access to
external borrowings where personal networth and credit worthiness
of partner affects decision of prospective lenders. Further, it is
susceptible to risks of withdrawal of partner's capital at time of
personal peril and poor succession decisions may raise the risk of
dissolution of the firm.
* Fragmented nature of industry with seasonality associated with
business: RGR operates in a highly competitive and fragmented
industry with a large number of small & mid-sized companies
operating hotels & resorts at various places in Mumbai and also to
the vicinity of the resort location. Furthermore, the hospitality
industry is highly seasonal in nature with non-festive and
non-holiday months face a slack in demand. Further, tourist season
for water & amusement park is mainly in the summer months viz.
March to June in which most of the tourist flow is concentrated.
During the rest of the year the tourist flow is significantly
lower. All these factors are evidently reflected in small size of
operations of the firm
Key strengths
* Established track record of operations along with experienced
promoters: RGR is into existence from past 25 years is promoted by
Mr. Jitendra Thakur, Mr. Manoj Thakur and Mr. Mangesh Thakur who
have an experience of more than two decades in diversified
businesses like hotel industry and construction sector. The
promoters have vast experience through their owned businesses under
the name of Radhe Constructions Co. and Hotel Royal Hills situated
in Vasai as well. Being in the industry for more than two decades
has helped the promoters in gaining adequate acumen about
hospitality industry and has helped in the smooth operations of the
RGR.
* Comfortable operating cycle: The operations of RGR are less
working capital-intensive owing to the business operating in
service sector. The creditors of RGR basically comprise of food,
vegetables, facility services, liquor and material providers from
whom the entity collectively gets credit period of 30 to 80 days.
The collection period improved to 3 days in FY23 as compared to 17
days in FY22. However, operating cycle remains comfortable and
stood at negative days owing creditor days which stood at 29 days
in FY23 as compared to 62 days in FY22.
Liquidity: Stretched
The liquidity position of RGR is stretched marked by low cash and
bank balance and tightly matched cash accruals with scheduled debt
repayment obligations. As on March 31, 2023, the free cash and bank
balance stood at INR 0.23 crores. During FY23, net cash flow from
operations stood at INR 2.12 crores. As on March 31, 2023, current
ratio stood at 4.76x (PY-6.72x) and quick ratio stood at 4.70x
(PY-6.65x)
Royal Garden Resort (RGR) is a Mumbai based partnership firm,
promoted by the Thakur family with key promoters being Mr. Jitendra
Thakur, Mr. Manoj Thakur and Mr. Mangesh Thakur. It is engaged in
running of a resort which comprises of water and amusement park.
The hotel comprises 94 AC rooms (12 super deluxe, 7 double suite
room and 75 deluxe rooms) with occupancy rate of 60%, 8 conference
halls facility, 2 banquet halls, 6 swimming pools, 1 gym and 1 AC
restaurant viz. 'Orient' of 1800 square feet.
S. M. CONSTRUCTIONS: CARE Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of S. M.
Constructions (SMC) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.39 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 8,
2022, placed the rating(s) of SMC under the 'issuer
non-cooperating' category as SMC 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. SMC
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).
Goa-based S.M. Constructions (SMC) was established as a
proprietorship concern in the year 1994 by Mrs Shamshun Shaikh,
with the assistance of her husband Mr Muktar Shaikh, for industrial
construction and real estate development in the state of Goa. The
firm belongs to the Shaikh Muktar Group (SMG) of companies in Goa,
which has interests in mining, construction, engineering,
logistics, hospitality (new venture), shipping and automobiles.
SAMRAT RUBBERS: Voluntary Liquidation Process Case Summary
----------------------------------------------------------
Debtor: Samrat Rubbers Private Limited
B-2, Santhosh Apartments
56 Tamizh Salai (formerly Halls Road)
Egmore, Chennai 600008
Liquidation Commencement Date: November 20, 2023
Court: National Company Law Tribunal, Chennai Bench
Insolvency professional: Sankar Varadharajan
Interim Resolution
Professional: Sankar Varadharajan
No. 6/12, Appavoo Gramani
1st Street, Mandaveli
Chennai 600028
Mobile: 9791169369
E-mail: advsankarirp@gmail.com
Last date for
submission of claims: December 20, 2023
SAR SENAPATI: CRISIL Assigns B Rating to INR50cr Term Loan
----------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B/Stable' rating to the
long-term bank facilities of Sar Senapati Santaji Ghorpade Sugar
Factory Ltd (SSSGSFL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Fund- 0.51 CRISIL B/Stable (Assigned)
Based Bank Limits
Term Loan 35 CRISIL B/Stable (Assigned)
Term Loan 25 CRISIL B/Stable (Assigned)
Term Loan 50 CRISIL B/Stable (Assigned)
Term Loan 14.49 CRISIL B/Stable (Assigned)
Term Loan 25 CRISIL B/Stable (Assigned)
The rating reflects susceptibility to cyclicality in the sugar
industry; exposure to risks amplified by dependence on monsoon,
working capital intensive operations and leveraged capital
structure. These weaknesses are partially offset by the extensive
experience of the management in the sugar industry, longstanding
relationships with customer and suppliers and integrated operations
and diverse revenue streams.
Analytical approach
Preference shares of INR70.63 crore as on March 31, 2023, have been
treated as 75% equity and 25% debt as these are from the promoters
and will remain in the business over the medium term.
Key rating drivers and detailed description
Weaknesses:
* Large working capital requirement: Gross current assets (GCAs)
were at 339-428 days over the three fiscals through 2023.
Operations are working capital intensive, as reflected in GCAs of
420 days as on March 31, 2023, driven by large inventory of 238
days and moderate receivables of 49 days. Inventory remains high
owing to seasonality attached to crop, which is harvested in
October and sold through April to November. Operations will remain
working capital intensive over the medium term.
* Susceptibility to price volatility and cyclicality in the sugar
business: Cane production is highly dependent on monsoon and
realisations in alternative crops, such as rice and wheat, which
may prompt farmers to switch to sowing other crops. Also, the
availability is restricted to the command area allocated to each
company. In India, alternative sweeteners to sugar are gur and
khandsari. Lower sugarcane yield and increase in sale of sugarcane
to gur and khandsari manufacturers may lead to decrease in sugar
production. Furthermore, sugarcane, sugar and other by-products
manufactured by the company remain extremely vulnerable to
government regulations and fluctuations in commodity prices, which
may impact the revenue and profitability.
* Leveraged capital structure: Networth and gearing were INR 85.25
crore and 7.66 times, respectively, as on March 31, 2023. The
company has increased its distillery capacity through partially
debt-funded capital expenditure (capex; INR 178 crore, funded
through term loan of INR 149.49 crore and balance through internal
funds); hence, gearing is expected ~8 times as on March 31, 2024.
Strengths:
* Long track record of operations supported by the extensive
experience of the management: The management has extensive
experience in the sugar industry. The company has 6,000 tonne
crushing per day (TCD) capacity, 23 MW captive power generation
capacity and 140 kilolitre per day (KLPD) distillery capacity, with
a track record of over a decade of operations. Over the years, the
management has developed sound understanding of market dynamics and
healthy relationships with customers and suppliers. In fiscal 2023,
the company posted revenue of INR 438 crore with operating margin
of 13.4%. As of November 25, 2023, revenue stood at INR 256 crore.
* Integrated operations and diverse revenue streams: SSSGSFL has
forward and backward integrated, allowing penetration into the
value chain. Integrated operations result in higher profitability,
as reflected in operating margin of 13.4% in fiscal 2023. The
company recently enhanced its distillery capacity to 140 KLPD from
50 KLPD; it procures molasses and bagasse from sugar factories to
generate ethanol. Revenue from the cogeneration and distillery
segments will increase over the medium term.
Liquidity: Stretched
Utilisation of cash credit (sugar pledge) limit of INR180 crore was
moderate at 47% on average over the 12 months through October 2023.
Cash accrual, expected at INR12-20 crore per fiscal, will be
insufficient to meet yearly debt obligation of INR60-75 crore over
the medium term.
Current ratio was low at 0.9 time as on March 31, 2023.
Outlook: Stable
SSSGSFL will continue to benefit from the extensive experience of
its management and established relationships with customers and
suppliers.
Rating sensitivity factors
Upward factors
* Increase in operating revenue by 35% and sustenance of operating
margin leading to higher cash accrual.
* Improvement in the financial risk profile and liquidity.
Downward factors
* Decline in scale of operations or operating profitability leading
to net cash accrual less than INR 10 crore.
* Further stretch in the working capital cycle or large,
debt-funded capex weakening liquidity and financial risk profile.
Incorporated in 2011, SSSGSFL is an integrated sugar manufacturer
and has a plant in Kagal, Maharashtra, with installed capacity of
6,000 TCD, 23 MW captive power generation capacity and 140 KLPD
distillery. The company also operates a petrol/diesel pump.
SOLGEN ENERGY: CRISIL Lowers Long/Short Debt Ratings to D
---------------------------------------------------------
CRISIL Ratings has downgraded its ratings on the bank facilities of
Solgen Energy Pvt Ltd (SEPL) to 'CRISIL D/CRISIL D' from 'CRISIL
BB-/Stable/CRISIL A4+'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Rating - CRISIL D (Downgraded from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Short Term Rating - CRISIL D (Downgraded from
'CRISIL A4+ ISSUER NOT
COOPERATING')
The downgrade reflects the delay in servicing of term debt
obligations by the company owning to weak liquidity.
The rating continues to reflect SEPL's exposure to modest scale,
working capital intensive operations and weak financial risk
profile. These weaknesses are partially offset by SEPL's extensive
entrepreneurial experience and financial flexibility of promoters
and healthy order book.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations: SEPLs business profile is constrained
by its scale of operations, reflected in revenue of INR. 9.84
crores in fiscal 2023, in the intensely competitive solar industry.
Modest scale restrict its operating flexibility and bargaining
power.
* Working capital intensive operations: Gross current assets is
high at 473 days as on March 31, 2023, due to elongated debtors
cycle of 406 days as on March 31, 2023. Debtors are high due to
year-end sales, as well as retention money maintained with
counterparty for five years. Improvement in working capital will
remain key monitorable.
* Weak financial profile: Networth eroded because of previous
operating losses. Debt protection metrics are weak with net cash
accruals to total debt and interest coverage of 0.01 times and 1.17
times, respectively, in fiscal 2023. Financial profile is expected
to remain at similar levels due to high working capital
requirement.
Strengths:
* Extensive entrepreneurial experience and financial flexibility of
promoters: The company is promoted by T R Raghulal (promoter of
Elite Group, having presence in food products, real estate, etc.)
and Christo George (promoter of Hykon India Limited). The company
has implemented several solar projects in the past and enabled them
to establish relationships with suppliers and customers.
* Healthy order book: The company has an order book of more than
INR. 20 crores to be executed in fiscals 2023 to 2025. This
provides adequate revenue visibility and will strengthen the firm's
business profile over the medium term.
Liquidity: Poor
Liquidity is poor as reflected in delays in repayment of term debt
obligations. Bank limit utilisation is high at around 103 percent
for the past 12 months ended October 2023. Estimated Net cash
acrruals are tightly matched with their upcoming repayment
obligations. Negative net worth limits its's financial flexibility,
and restrict the financial cushion available to the company in case
of any adverse conditions or downturn in the business.
However, stretch in receivables remains a key risk.
Rating Sensitivity Factors
Upward factors:
* Track record of timely debt servicing for at least over 90 days.
* Sustained improvement in scale of operations by 20% while
maintaining Margins, leading to higher cash accruals.
* Improvement in financial risk profile
It is engaged in manufacturing and assembling services of solar
photovoltaic module (PV) panels, roof top installations, solar
street lighting, solar water pumps, home lighting systems and solar
lanterns.
SPICEJET LTD: Set to Raise INR2,250cr, Cuts Loss in Sept. Qtr
-------------------------------------------------------------
Livemint.com reports that the board of SpiceJet Ltd on Dec. 12
decided to raise over INR2,250 crore through a preferential issue
of shares and warrants, in a fresh lifeline for the low-cost
airline battling multiple creditors and lessors.
The board decided to allot shares and warrants to 64 entities,
including financial institutions, foreign institutional investors
and private investors, the company said in a statement.
"This is a significant fund raise and it is designed to strengthen
SpiceJet's financial position, enhance operational capabilities,
settle outstanding issues and position the airline again for
sustained growth in the dynamic aviation sector," Ajay Singh,
chairman and managing director, said in the statement, Livemint.com
relays.
According to the report, the company has tapped investors,
including Aries Opportunities Fund, Elara India Opportunities Fund,
Resonance Opportunities Fund, Prabhudas Lilladher, Nexus Global
Fund and Mahapatra Universal Ltd.
SpiceJet plans to issue 320.8 million equity shares and up to 130
million convertible warrants at INR50 each. The company expects to
receive the funds after its annual general meeting next month.
"SpiceJet has the advantage of prime slots and a pilot community,
both of which are in short supply in India. If they are able to
raise even more than INR1,000 crore, it is a positive move for the
airline as they are an established carrier and this will help them
in working capital for long-term investments across MRO
(maintenance, repair, and operations), sale and leaseback models,"
the report quotes analyst Gagan Dixit of Elara Capital as saying.
On Dec. 12, the Gurugram-based airline reported a consolidated net
loss of INR449.4 crore in the September quarter, against a net loss
of INR833.2 crore a year ago, Livemint.com discloses. Its total
income fell 18% on-year to INR1,725.8 crore in the quarter while
expenditure fell 26% to INR2,175.2 crore.
Livemint.com says the covid-19 pandemic took a severe toll on
SpiceJet. Its consolidated net loss jumped from INR302 crore in
2018-19 to INR937 crore in 2019-20, INR1,030 crore in 2020-21,
INR1,744 crore in 2021-22 and at INR1,513 crore in 2022-23. The
airline reported a net profit of INR197.6 crore in the June quarter
this year.
Alongside, the airline's market share has falling since the
pandemic outbreak on account of shortage of funds, leaving it with
more than 25 aircraft on the ground and an active fleet of nearly
40 aircraft, Livemint.com notes.
SpiceJet's market share in the domestic market stood at 5% in
October, with a passenger traffic of around 628,000, as compared to
7.3% in the same period last year with nearly 830,000 passengers
and 16.3% market share with 2 million passengers in October 2019.
Similarly, its international passenger traffic to and from India in
the September quarter stood at 409,550, 13% down from a year
earlier, and down 43% from the September quarter of 2019, whereas
the rest of the Indian carriers registered a combined 26% and 35%
increase from 2022 and 2019, respectively, during the same period.
In July, the airline said it will receive fresh capital infusion of
INR500 crore from promoter Singh, Livemint.com recalls. Out of
this, around INR200 crore has been received by the company.
During the September quarter, the airline reduced debt of INR230
crore against allotment of over 48.1 million equity shares to
Carlyle Aviation Partners at INR48 per share, and has settled dues
with aircraft lessor Castle Lake as well. A loan of INR100 crore
has also been repaid and closed with City Union Bank, Livemint.com
discloses.
However, it continues to be entangled in legal disputes with
aircraft lessors, including Celestial Aviation, Willis Lease
Finance, Wilmington Trust, and Aircastle Ltd that are seeking
insolvency proceedings against SpiceJet for defaulting on
payments.
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.
SS CONVENTION: CARE Assigns B Rating to INR30cr LT Loan
-------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of SS
Convention and Resort (SSCR), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 30.00 CARE B; Stable Assigned
Rationale and key rating drivers
The ratings assigned to the bank facilities of SSCR is constrained
by the nascent stage of project implementation, business
stabilisation risk post commencement of operations, relatively
inexperienced promoters, and highly competitive and cyclical
hospitality industry. The ratings, however, derives strength from
the financial closure of debt.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Commencement of commercial operations as per envisaged timelines
and achieving the sales and profits as projected
Negative factors
* Delay in execution of the project resulting in significant time
and costs overrun.
Analytical approach: Standalone
Outlook: Stable
CARE Ratings Limited (CARE Ratings) believes that in the medium
term, SSCR will maintain its credit profile basis the progress in
construction and achievement of financial closure.
Detailed description of the key rating drivers:
Key Weaknesses
* Nascent stage of project implementation: Project is in a nascent
stage and as of August 2023, 20.49% of the structural construction
is completed.
* Business stabilization risk: Hotel business inherently requires
initial few months to establish stability and attain consistent
occupancy rate. Management has envisaged to achieve occupancy of
55-65% during the initial years of operation. Situated nearly 10KM
away from the main town, firm faces competition from premium
category hotels and banquet halls within the town limits.
Key Strengths
* Financial closure of the project: The total cost of the project
is estimated at INR49.17 Cr, out of which INR30.00 Cr is tied up by
way of Term Loan from Union Bank of India. Remaining amount of
INR19.17 Cr constitutes promoters' contribution which is expected
to be brought in as own capital (INR9.00 crores) and unsecured loan
from friends and relatives (INR10.17 crores). The 15 Acres of land
earmarked for the project is owned by the partners and they have
executed 75 years lease agreement favoring the firm to run the
hotel business.
Liquidity: Stretched
Firm is yet to commence the commercial operations and there is no
regular cash inflow as on date. The term loans stand availed and is
expected to be fully availed by the end of FY24. Timely infusion of
capital from the promotes end is also critical to timely completion
of the project. Post completion, scaling up of operations is
expected to take time while repayment would commence and hence
timely support from the promoters would be required to meet debt
servicing commitments.
Constituted as a partnership firm on September 1, 2022, M/s SS
Convention and Resort (SSCR) is proposed to develop a non-star
hotel and convention centre at Agaram Village, Dindugul (TN). The
firm is promoted Mr. G. Sivakumar and Mrs. S. Vijayalakshmi. Mr.
Sivakumar has been into the business of trading hardware goods
since 1987 while SSCR marks his first venture into hospitality
sector.
SSA TRADERS: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: SSA Traders Private Limited
2, Press Enclave Road Saket
New Delhi, Delhi
India 110017
Insolvency Commencement Date: November 17, 2023
Court: National Company Law Tribunal, New Delhi Bench-Court V
Estimated date of closure of
insolvency resolution process: May 8, 2024
Insolvency professional: Pradeep Kumar Ray
Interim Resolution
Professional: Pradeep Kumar Ray
WZ-108, First Floor
Shadipur Main Bazar
Chotti Choupal (Pakodiwali Gali)
Central, NCT of Delhi
110008
E-mail: sstraders.cirp@gmail.com
pkrayip@gmail.com
Last date for
submission of claims: December 2, 2023
TANEJA OVERSEAS: CARE Keeps B- Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Taneja
Overseas (TO) continue to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.00 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 15,
2022, placed the rating(s) of TO under the 'issuer non-cooperating'
category as TO 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. TO 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).
Taneja Overseas (TO) is a Punjab based, partnership firm
established in 2007 by Mr. Avtar Singh Taneja, Mr. Jaideep Singh
and Mrs. Satinder Kaur. The firm is engaged in processing of paddy
at its manufacturing facility located in Tarn Taran, Punjab.
UNITED MANUFACTURING: CRISIL Withdraws B+ Rating on INR5.5cr Loan
-----------------------------------------------------------------
Due to inadequate information, CRISIL Ratings, in line with SEBI
guidelines, had migrated the rating of United Manufacturing Company
(UMC) to 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating'.
CRISIL Ratings has withdrawn its rating on bank facility of UMC
following a request from the company and on receipt of a 'no dues
certificate' from the banker. Consequently, CRISIL Ratings is
migrating the ratings on bank facilities of PTD to 'CRISIL
B+/Stable/CRISIL A4' from 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating. The rating action is in line with CRISIL Ratings'
policy on withdrawal of bank loan ratings.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5.5 CRISIL B+/Stable (Migrated from
'CRISIL B+/Stable ISSUER NOT
COOPERATING'; Rating Withdrawn)
Proposed Fund- 5.5 CRISIL B+/Stable (Migrated from
Based Bank Limits 'CRISIL B+/Stable ISSUER NOT
COOPERATING'; Rating Withdrawn)
Proposed Non Fund 5 CRISIL B+/Stable (Migrated from
based limits 'CRISIL B+/Stable ISSUER NOT
COOPERATING'; Rating Withdrawn)
UMC was incorporated in 1987 as partnership firm. It manufactures
firefighting vehicles, industrial fire fighting vehicles, emergency
rescue vehicles for fire services (state and central governments),
army, navy, air force, oil refineries, railways; its manufacturing
unit is in Bahadurgarh (Haryana). Mr Gurpreet Singh and Ms Harpreet
Kaur manage the business.
VINOD FABRICS: CARE Keeps B- Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Vinod
Fabrics (VF) continue to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.65 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 8,
2022, placed the rating(s) of VF under the 'issuer non-cooperating'
category as VF 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. VF 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).
VF was formed in August 2005 by Mr. Om Prakash Gupta as
proprietorship concern. VF is engaged in the business of dyeing and
printing of fabrics from its processing facilities located in Pali,
Rajasthan. VF uses grey cloth as raw material which is procured
from traders located in South Indian states and Maharashtra.
ZEE ENTERTAINMENT: High Court to Hear Insolvency Plea vs Promoters
------------------------------------------------------------------
Livemint.com reports that the Supreme Court has issued notices to
two promoter companies of Zee Entertainment Enterprises Ltd,
agreeing to hear a plea filed by IDBI Trusteeship Services for
insolvency proceedings.
IDBI Trusteeship had challenged a recent order of the National
Company Law Appellate Tribunal rejecting its plea to initiate
insolvency proceedings against Cyquator Media Services and Direct
Media Distribution Ventures.
The apex court has now granted the two promoter companies four
weeks to respond to its notices, the report says.
According to Livemint.com, the case's origin dates back to 2015
when Essel Infraprojects, a subsidiary of Zee TV founder Subhash
Chandra's Essel Group, proposed the sale of 425 non-convertible
debentures worth INR425 crore on a private placement basis.
IDBI had agreed to act as the debenture trustee. A debenture trust
deed was executed between IDBI Trusteeship Services and Essel, with
Cyquator Media and Direct Media Ventures acting as corporate
guarantors.
Livemint.com relates that the disbursal of the INR425-crore debt
occurred in two tranches - INR200 crore in May 2015 and INR225
crore the following month. The non-convertible debentures were due
in May 2020, but when that didn't happen IDBI Trusteeship Services
invoked the corporate guarantee clause.
IDBI issued a notice to Cyquator to make the payments in June 2020,
and an insolvency notice in May 2022 alleging a default of INR591
crore, Livemint.com notes.
Livemint.com says the National Company Law Tribunal, however,
rejected IDBI's claim. Subsequently, the appellate tribunal too
rejected its plea arguing that the default in payment had occurred
in June 2020, which fell within the period excluded under Section
10A of the Insolvency and Bankruptcy Code.
The government had introduced Section 10A to provide relief to
companies facing defaults during the Covid-19 period. According to
this provision, a tribunal is barred from initiating insolvency
proceedings against a company for defaults occurring between March
25, 2020 and March 25, 2021.
IDBI Trusteeship Services has also contested the merger of Sony
Pictures Networks India and Zee, and lodged an appeal against
former Zee Enterprises chairman Subhash Chandra in the National
Company Law Appellate Tribunal, Livemint.com relays.
It has claimed that Chandra failed to fulfil his obligations under
the personal guarantee, thereby categorising him as a debtor. The
appeal argues that Chandra is indebted to the trusteeship company,
with the claimed amount being INR500 crore.
Livemint.com adds that Axis Finance too has filed similar plea
before NCLAT against the Sony-Zee merger. The proposed merger worth
$10 billion is under threat due to legal hurdles posed by creditors
in different forums.
About Zee Entertainment
Based in Mumbai, India, Zee Entertainment Enterprises Limited,
together with its subsidiaries, engages in broadcasting satellite
television channels.
As reported in the Troubled Company Reporter-Asia Pacific in early
September 2023, the National Company Law Appellate Tribunal (NCLAT)
on Aug. 31 issued notice to Zee Entertainment Enterprises Ltd
(ZEEL) in a plea by IDBI Bank to initiate insolvency proceedings
against the company.
According to Hindu BusinessLine, IDBI Bank, in its plea, said it
was unable to recover unpaid dues of around INR150 crore from Zee.
Many banks, including IndusInd, Standard Chartered, Axis Bank and
IDBI, have initiated insolvency proceedings against Zee ahead of
its merger with Sony. So far, Zee has reached a settlement with
IndusInd and Standard Chartered.
=============
M Y A N M A R
=============
MYANMAR: Economy is Deteriorating as Civil Conflict Intensifies
---------------------------------------------------------------
The Associated Press reports that Myanmar's economy is forecast to
grow only 1% in the fiscal year that ends in March, the World Bank
said, as conditions deteriorate with an escalation in fighting
between the military and its opponents that has newly displaced
more than 500,000 people.
Intensified fighting near Myanmar's border with China has blocked
trade routes, causing shortages of food and other necessities and
worsening inflation that was already near 30%, the World Bank said
in a report on Dec. 12, the AP relays.
According to the AP, Myanmar is embroiled in widespread conflicts
that deepened and expanded after the military's seizure of power
from the elected government of Aung San Suu Kyi in early 2021
prompted a wave of popular resistance.
The total number of people displaced by fighting has risen to some
2.5 million, the report said.
Political instability coupled with the pandemic and mismanagement
by the military leadership have undone years of economic progress,
the report said. It said the military administration's efforts to
attract foreign exchange and stabilize Myanmar's currency, the
kyat, have "generally been ineffective," causing uncertainty and
distorting markets.
The forecast for 1% growth suggests the economy will be about 10%
smaller in 2024 than it was five years earlier, the AP relays.
"At the same time, a lack of clarity around the implementation and
enforcement of frequently changing and often non-transparent
instructions has raised uncertainty and increased compliance
costs," it said.
According to the AP, the report said power outages were affecting
both homes and businesses, with costs for running generators during
blackouts causing garment manufacturers losses amounting to nearly
a third of their sales in 2022. That is undermining one of the
country's most important drivers for growth and exports.
"With the operating environment deteriorating and uncertainty about
the future increasing, Myanmar's garment firms have been forced to
focus on survival rather than investment and growth," Kim Alan
Edwards, the World Bank's program leader and senior economist for
Myanmar, said in a statement.
The AP adds that among other developments mentioned in the report:
* A survey in September found that companies said
they were operating at less than 60% of capacity,
down from 75% in April.
* Average household incomes fell by 10% in the April-June
quarter compared with a year earlier.
* Tourism has failed to recover despite government efforts
to lure back visitors, with several international hotel
chains remaining closed.
=====================
N E W Z E A L A N D
=====================
CBL CORP: Liquidators Get NZD11.6 Million in Court Settlement
-------------------------------------------------------------
BusinessDesk reports that liquidators for CBL Corporation netted
NZD11.6 million in a court settlement against the insolvent
companies' former directors.
In their report for the six months to Dec. 11, liquidators Neale
Jackson and Brendon Gibson said the money was received for the
claim about breaches of directors' duties.
BusinessDesk relates that the proceedings concerned the
acquisitions of Securities and Financial Solutions Europe SA and
IMS Expert Europe SA in January 2017. The report revealed a
creditor paid NZD600,000 to help fund that claim.
Founded in 1973, CBL Corporation Limited together with its
subsidiaries, provided insurance and reinsurance products and
services primarily in New Zealand. It offered financial risk
products, builders' risks, sureties, guarantees, and contractor
bonds primarily in Europe and Scandinavia; deposit guarantees in
Australia; and bonding and fiduciary services to the Mexican
commercial sector. The company also provided a range of specialty
products, such as credit enhancement, surety bonds, specialized
property insurance, aviation, and rural risk in Australia, as
wellas distributes construction-sector insurance products in France
through a network of brokers.
CBL Corp. went into voluntary administration in late February 2018,
in a move to prevent other regulators from taking action after the
Reserve Bank moved to have its subsidiary CBL Insurance placed in
interim liquidation.
On Feb. 23, 2018, KordaMentha New Zealand partners Brendon Gibson
and Neale Jackson were appointed Voluntary Administrators by the
Board of CBL Corporation Ltd and certain of its subsidiaries.
The administration relates to New Zealand-domiciled companies.
Messrs. Gibson and Jackson are administrators to these CBL
entities: CBL Corporation Limited; LBC Holdings New Zealand Ltd;
LBC Holdings Americas Ltd; LBC Holdings UK Ltd; LBC Holdings Europe
Ltd; LBC Holdings Australasia Ltd; LBC Treasury Company Ltd;
Deposit Power Ltd; South British Funding Ltd; and CBL Corporate
Services Ltd.
In November 2018, the High Court in Auckland placed CBL Insurance
into liquidation with Kare Johnstone and Andrew Grenfell from
McGrathNicol appointed as liquidators.
CLOUDY BAY: Court to Hear Wind-Up Petition on Feb. 2
----------------------------------------------------
A petition to wind up the operations of Cloudy Bay Clams Limited
will be heard before the High Court at Christchurch on Feb. 2,
2024, at 10:45 a.m.
Port Marlborough New Zealand Limited filed the petition against the
company on Nov. 7, 2023.
The Petitioner's solicitor is:
D. J. Friar
Level 22, Vero Centre
48 Shortland Street
Auckland
FIVE REDLAND: McGrathNicol Appointed as Liquidators
---------------------------------------------------
Andrew Grenfell and Kare Johnstone of McGrathNicol on Dec. 7, 2023,
were appointed as liquidators of Five Redland Road Limited.
The liquidators may be reached at:
McGrathNicol
Level 17, 41 Shortland Street
Auckland
PO Box 106733
Auckland 1143
METROPOLIS REAL ESTATE: Creditors' Proofs of Debt Due on Jan. 7
---------------------------------------------------------------
Creditors of Metropolis Real Estate Limited are required to file
their proofs of debt by Jan. 7, 2024, to be included in the
company's dividend distribution.
The High Court at Christchurch appointed Elizabeth Helen Keene and
Luke Norman of KPMG as liquidators on Dec. 7, 2023.
SCAFFOLD ALCHEMY: Court to Hear Wind-Up Petition on Feb. 8
----------------------------------------------------------
A petition to wind up the operations of Scaffold Alchemy Limited
will be heard before the High Court at Auckland on Feb. 8, 2024, at
10:45 a.m.
Christine Belinda Heagney filed the petition against the company on
Nov. 3, 2023.
The Petitioner's solicitor is:
Anna Fuiava
Level 4, 3 Osterley Way
Manukau
Auckland
WELLINGTON ENGINEERING: Creditors' Proofs of Debt Due on Jan. 19
----------------------------------------------------------------
Creditors of Wellington Engineering Proud Limited are required to
file their proofs of debt by Jan. 19, 2024, to be included in the
company's dividend distribution.
The High Court at New Plymouth appointed Wendy Somerville and
Richard Nacey of PwC Wellington as liquidators on Dec. 1, 2023.
=================
S I N G A P O R E
=================
ASTI HOLDINGS: Singapore High Court Rules EGM Invalid
-----------------------------------------------------
The Business Times reports that the Singapore High Court has deemed
the extraordinary general meeting (EGM) called on Aug. 22 by Asti
Holdings' dissenting shareholders to be invalid. It also dismissed
an application filed by the requisitioning shareholders against the
company and its incumbent board members to comply with resolutions
approved at the said EGM, based on a court decision released on
Dec. 12.
To recap, four shareholders requisitioned an EGM to replace the
semiconductor company's entire board, BT recalls. The company and
the incumbent board repeatedly disavowed the meeting as invalid,
but the EGM went on as planned following dialogues conducted by the
Securities Investors Association (Singapore).
According to BT, the board tussle came amid Asti's share suspension
and notification of delisting from the Singapore Exchange (SGX)
after the company failed to meet requirements to exit the watch
list.
In its judgment, the court declared that the resolutions passed at
the Aug. 22 EGM were invalid and did not hold any legal effect, BT
reports. Although notice for the EGM was validly served, the court
said the meeting was not properly conducted.
BT relates that Asti had argued that advertisements in the daily
press and writing to SGX regarding the EGM were insufficient notice
to shareholders, as notice must be given by delivery or post to
each member, or the Central Depository.
The court rejected Asti's assertion and said the company conflated
the issue of the form of notice with that of the service of
notice.
As for the conduct of the meeting, the court said that Section 177
of the Act did not give the requisitioners the power to conduct the
meeting, as such powers depended on the company's constitution.
Instead, Article 76 in the constitution gave incumbent directors
the right to attend the meeting and be heard.
BT says the requisitioners had informed the incumbent directors
that they were barred from attending the EGM, failing to give due
regard to Article 76.
The parties involved have three weeks to write in regarding their
position on costs. The time to file an appeal will also run from
Tuesday.
The convening shareholders and proposed directors will review the
judgment with their respective lawyers and seek their advice, they
said in a press statement.
Based in Singapore, ASTI Holdings Limited --
https://www.astigp.com/ -- engages in the provision of
semiconductor manufacturing services for surface mount technology
components in Singapore, China, Malaysia, the Philippines, the
United Kingdom, and internationally.
FINAXAR HOLDINGS: Creditors' Meetings Set for Jan. 4
----------------------------------------------------
Finaxar Holdings Pte Ltd will hold a meeting for its creditors on
Jan. 2, 2024, at 4:30 p.m. via video conference.
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.
MAISON KAYSER: Commences Wind-Up Proceedings
--------------------------------------------
Members of Maison Kayser (Singapore) Pte Ltd, on Dec. 7, 2023,
passed a resolution to voluntarily wind up the company's
operations.
The company's liquidators are:
Abuthahir Abdul Gafoor
Yessica Budiman
144 Robinson Road
#14-02 Robinson Square
Singapore 068908
N.Y.D.C. (WL): Commences Wind-Up Proceedings
--------------------------------------------
Members of N.Y.D.C. (WL) Pte Ltd on Dec. 8, 2023, passed a
resolution to voluntarily wind up the company's operations.
The company's liquidators are:
Abuthahir Abdul Gafoor
Yessica Budiman
144 Robinson Road
#14-02 Robinson Square
Singapore 068908
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2023. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
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TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000.
*** End of Transmission ***