/raid1/www/Hosts/bankrupt/TCRAP_Public/240209.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
Friday, February 9, 2024, Vol. 27, No. 30
Headlines
A U S T R A L I A
AUSTRALIAN FLOOR: Second Creditors' Meeting Set for Feb. 13
ENVIRONMENTAL TECHNOLOGY: First Creditors' Meeting Set for Feb. 14
LITHIUM LAKES: First Creditors' Meeting Set for Feb. 12
PROBIOTICS AUSTRALIA: First Creditors' Meeting Set for Feb. 15
SEVVA PTY: First Creditors' Meeting Set for Feb. 13
C H I N A
MEIXIHU INVESTMENT: Moody's Withdraws 'Ba1' Corp. Family Rating
I N D I A
ADITYA AGRO: ICRA Keeps D Debt Ratings in Not Cooperating
AM VOLERE: Voluntary Liquidation Process Case Summary
ANGEL PROMOTERS: Insolvency Resolution Process Case Summary
ANNAPURNA TRADERS: CARE Keeps C Debt Rating in Not Cooperating
ARS SALES: Voluntary Liquidation Process Case Summary
ARSM COMMERCIAL: Voluntary Liquidation Process Case Summary
ARYAVANSH LAND: CARE Keeps C Debt Rating in Not Cooperating
ATC LOGISTICS: ICRA Keeps B+ Debt Ratings in Not Cooperating
BDR EDUCATIONAL: Ind-Ra Keeps C Rating in Non-Cooperating
BIO AGRO: Ind-Ra Assigns B+ Term Loan Rating, Outlook Stable
BUDDHA SORTEX: ICRA Keeps B+ Debt Ratings in Not Cooperating
BUILDMATE PROJECTS: CARE Keeps C Debt Rating in Not Cooperating
BYJU'S: NCLT Seeks Response on Teleperformance's Insolvency Plea
CHENANI NASHRI: Ind-Ra Affirms D Bank Loan Rating
CSL APOLLO: Voluntary Liquidation Process Case Summary
CUBE HIGWAYS: Voluntary Liquidation Process Case Summary
DEEPTHY FENISHERS: ICRA Keeps B Debt Rating in Not Cooperating
ECOMOTEL HOTEL: CARE Keeps D Debt Rating in Not Cooperating
EMERALD HEIGHTS: CARE Keeps B+ Rating in Not Cooperating Category
EVEREST SEA: CARE Lowers Rating on INR10.10cr LT Loan to B
FATEH CHAND: Ind-Ra Affirms BB+ Rating, Outlook Positive
GO FIRST: Three Bidders Lodge EOIs for Carrier
GOLDEN JUBILEE: CARE Keeps D Debt Ratings in Not Cooperating
GOLDEN MANDHIR: CARE Keeps B- Debt Rating in Not Cooperating
GREEN MIRROR: CARE Keeps D Debt Rating in Not Cooperating Category
GURUDEVA CHARITABLE: Ind-Ra Keeps D Rating in Non-Cooperating
HARMAN COTTEX: Ind-Ra Cuts Bank Loan Rating to BB+
HEAVY ENGINEERING: Ind-Ra Moves D Rating to NonCooperating
IHHR HOSPITALITY: CARE Keeps B+ Debt Rating in Not Cooperating
JVS BIOFUELS: CARE Lowers Rating on INR80cr LT Loan to D
K.P. CHACKO: CARE Keeps B- Debt Rating in Not Cooperating Category
KALAVAKURU ESTATES: Ind-Ra Assigns B+ Bank Loan Rating
KARPAGAMBAL MILLS: Ind-Ra Assigns BB+ Rating, Outlook Stable
KOLEKTOR TECHNOLOGIES: Voluntary Liquidation Process Case Summary
KRISHNA RESIDENCY: Voluntary Liquidation Process Case Summary
KRISHNA STEELS: Ind-Ra Affirms BB+ Bank Loan Rating
KUNDAN INDUSTRIES: Insolvency Resolution Process Case Summary
LEXUS GRANITO: ICRA Keeps D Debt Ratings in Not Cooperating
LODZ DENIM: Ind-Ra Affirms BB+ Bank Loan Rating, Outlook Negative
M V AGRO: ICRA Keeps D Debt Ratings in Not Cooperating Category
MAHARAJA SATHYAM: ICRA Keeps B+ Debt Rating in Not Cooperating
MAHAVIR RICE: Ind-Ra Assigns BB+ Rating, Outlook Stable
MANOHAR INFRASTRUCTURE: CARE Lowers Rating on INR90cr Loan to B
MATA RANI: Ind-Ra Keeps D Rating in Non-Cooperating
MAVERICK HOLDINGS: Ind-Ra Cuts Bank Loan Rating to BB
METTU CHINNA: CARE Keeps D Debt Ratings in Not Cooperating
MITTAL SOYA: Ind-Ra Corrects December 18, 2023 Rating Release
NAGRAJ ALLOYS: Insolvency Resolution Process Case Summary
NATIONAL STEEL: Ind-Ra Keeps D Rating in Non-Cooperating
ORMEC ENGINEERING: Voluntary Liquidation Process Case Summary
PANCHWATI PRAYOGSHALA: ICRA Keeps B+ Ratings in Not Cooperating
PARAMOUNT INTERNATIONAL: ICRA Keeps D Ratings in Not Cooperating
PARISHUDH MACHINES: CARE Keeps D Debt Rating in Not Cooperating
PRASHUL REAL: Insolvency Resolution Process Case Summary
PSV PRECAST: CARE Keeps B- Debt Rating in Not Cooperating Category
RCI INDUSTRIES: Ind-Ra Keeps D Rating in Non-Cooperating
RESOLUTION ENTERPRISES: ICRA Keeps B+ Ratings in Not Cooperating
SAPTARISHI HOTELS: CARE Keeps D Debt Ratings in Not Cooperating
SARRALLE EQUIPMENT: Ind-Ra Assigns BB+ Rating, Outlook Stable
SAT INDIA: Insolvency Resolution Process Case Summary
SECUREKLOUD TECH: CARE Reaffirms C Rating on INR17.12cr Loan
SHIV SHANKAR: CARE Keeps D Debt Rating in Not Cooperating Category
SIKAR BIKANER: Ind-Ra Hikes Bank Loan Rating to B-, Outlook Stable
SMT MACHINES: CARE Keeps D Debt Rating in Not Cooperating Category
SRS LIMITED: Ind-Ra Keeps D Rating in Non-Cooperating
STAR SCHOOL: Ind-Ra Keeps D Rating in Non-Cooperating
START SMART: Voluntary Liquidation Process Case Summary
SWASTIK COAL: Ind-Ra Keeps D Rating in Non-Cooperating
TIRUPATI CARBONS: Ind-Ra Hikes Loan Rating to BB-, Outlook Stable
UNIVERSAL EDUCATIONAL: Ind-Ra Keeps C Rating in NonCooperating
UPL CORP: Moody's Assigns Ba1 CFR, Cuts Unsec. Debt Rating to Ba1
UPL CORP: S&P Downgrades Long-Term ICR to 'BB', Outlook Negative
VIRUTCHAM MICROFINANCE: Ind-Ra Affirms BB+ Bank Loan Rating
WDB INDIA: Voluntary Liquidation Process Case Summary
WINSOME INTERNATIONAL: Ind-Ra Hikes Bank Loan Rating to BB-
XRBIA DEVELOPERS: Insolvency Resolution Process Case Summary
J A P A N
[*] JAPAN: Marriage Agencies Going Bankrupt at Record Rate
M A L A Y S I A
TH HEAVY: Court Admits Creditors' Compulsory Liquidation Bid
N E W Z E A L A N D
COOLTHERM LIMITED: Court to Hear Wind-Up Petition on March 15
HILLARY OUTDOORS: To Close Education Centre in Aotea
J & J CAFE: Court to Hear Wind-Up Petition on Feb. 15
LEH1 LIMITED: Court to Hear Wind-Up Petition on Feb. 16
LIBERTA SYSTEMS: Grant Bruce Reynolds Appointed as Liquidator
OPUM TECHNOLOGIES: Liquidation Leaves NZD2.7 Million Shortfall
RUAPEHU ALPINE: Future Uncertain as Buyer Backs Out
SOUTHERN LAKES: Creditors' Proofs of Debt Due on March 2
S I N G A P O R E
BREADSHAKE PTE: Court to Hear Wind-Up Petition on Feb. 23
CSK JAPAN: Creditors' Proofs of Debt Due on March 9
FRIGO FOOD: Commences Wind-Up Proceedings
NSTA INVESTMENT: Creditors' Proofs of Debt Due on March 11
OCEAN PACIFIC: Creditors' Meeting Set for Feb. 27
SHANGHAI CHONG: Winds Up Amid MOM Probe for Salary Arrears
- - - - -
=================
A U S T R A L I A
=================
AUSTRALIAN FLOOR: Second Creditors' Meeting Set for Feb. 13
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Australian
Floor Group Pty Ltd has been set for Feb. 13, 2024 at 10:00 a.m.
via teleconference.
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 Feb. 12, 2024 at 5:00 p.m.
Stuart Otway and Travis Olsen of SV Partners were appointed as
administrators of the company on Jan. 8, 2024.
ENVIRONMENTAL TECHNOLOGY: First Creditors' Meeting Set for Feb. 14
------------------------------------------------------------------
A first meeting of the creditors in the proceedings of
Environmental Technology Solutions Pty Ltd will be held on Feb. 14,
2024 at 10:30 a.m. via Zoom conference.
Gideon Isaac Rathner and Matthew Brian Sweeny of Lowe Lippmann were
appointed as administrators of the company on Feb. 5, 2024.
LITHIUM LAKES: First Creditors' Meeting Set for Feb. 12
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Lithium
Lakes Limited will be held on Feb. 12, 2024 at 11:30 a.m. at the
offices of WA Insolvency Solutions, a division of Jirsch Sutherland
at Suite 6.02, Level 6, 109 St Georges Terrace in Perth and via
teleconference facilities.
Jimmy Trpcevski and Greg Prout of WA Insolvency Solutions were
appointed as administrators of the company on Feb. 1, 2024.
PROBIOTICS AUSTRALIA: First Creditors' Meeting Set for Feb. 15
--------------------------------------------------------------
A first meeting of the creditors in the proceedings of Probiotics
Australia Pty Ltd will be held on Feb. 15, 2024 at 10:30 a.m. via
Microsoft Teams.
Marcus Watters, Alexander Man Chun Siu, and Brent Kijurina of Hall
Chadwick were appointed as administrators of the company on Feb. 5,
2024.
SEVVA PTY: First Creditors' Meeting Set for Feb. 13
---------------------------------------------------
A first meeting of the creditors in the proceedings of Sevva Pty
Ltd will be held on Feb. 13, 2024 at 11:30 a.m. at the offices of
Dye & Co. Pty Ltd at 165 Camberwell Road in Hawthorn East.
Shane Leslie Deane and Nicholas Giasoumi of Dye & Co. were
appointed as administrators of the company on Feb. 2, 2024.
=========
C H I N A
=========
MEIXIHU INVESTMENT: Moody's Withdraws 'Ba1' Corp. Family Rating
---------------------------------------------------------------
Moody's Investors Service has withdrawn Meixihu Investment
(Changsha) Co., Ltd.'s Ba1 corporate family rating.
The outlook prior to the withdrawal was negative.
RATINGS RATIONALE
Moody's has decided to withdraw the rating for its own business
reasons.
COMPANY PROFILE
Meixihu Investment (Changsha) Co., Ltd. was established in 2009 and
transferred to Hunan Xiangjiang New Area Dev. Grp. Co., Ltd
(Xiangjiang Group) in 2016 following the State Council's approval
of the establishment of the Xiangjiang New Area. The company is
ultimately controlled by the Changsha State-owned Assets
Supervision and Administration Commission (SASAC).
The Xiangjiang New Area, established in 2015, is one of 19
national-level New Areas and the only New Area in Hunan province.
National-level New Areas are special economic development zones
approved by the State Council.
Meixihu Investment is the sole entity designated to develop Meixi
Lake International New City, a central urban area of the Xiangjiang
New Area. The company predominantly engages in primary land
development, urban infrastructure construction and affordable
housing projects in the area. Meixihu Investment reported total
assets of RMB22.5 billion as of the end of 2022 and a total revenue
of RMB2.4 billion in 2022.
=========
I N D I A
=========
ADITYA AGRO: ICRA Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
ICRA has kept the Long-term rating for the bank facilities of
Aditya Agro Foods in the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 22.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long Term- 5.00 [ICRA]D; ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain under
'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Aditya Agro Foods, ICRA has been trying to seek information
from the entity so as to monitor its performance. Further, ICRA has
been sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple 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 ICRA, the rating has been continued to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
Aditya Agro Foods (AAF) was incorporated as a partnership firm in
the year 2009 and is engaged in the milling of paddy to producing
raw and boiled rice. The firm is promoted by Mr. Rajendra Reddy and
his family members who have extensive experience in the rice
milling industry. The firm's rice mill is located near Mutchumilli
village in East Godavari district of Andhra Pradesh with an
installed production capacity of 72,000 MTPA.
AM VOLERE: Voluntary Liquidation Process Case Summary
-----------------------------------------------------
Debtor: AM Volere Tradelink LLP
A-19, Sector 58, Noida, Gautam Buddha Nagar,
Noida, Uttar Pradesh India, 201301
Liquidation Commencement Date: December 11, 2023
Court: National Company Law Tribunal, New Delhi Bench
Liquidator: Mr. Ashok Kumar Verma
13-B, 2nd Floor, Above Central Bank of India,
Netaji Subash Marg, Daryaganj,
New Delhi-110002
E-mail: ashokvermafcs@yahoo.com
Contact No: 9811127616
Last date for
submission of claims: January 11, 2024
ANGEL PROMOTERS: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Angel Promoters Private Limited
D-848, Basement New Friends Colony,
New Delhi, 110025
Insolvency Commencement Date: December 20, 2023
Estimated date of closure of
insolvency resolution process: June 17, 2024
Court: National Company Law Tribunal, New Delhi Bench
Insolvency
Professional: Abhay Kumar
307, First Floor, Gyan Khand-1, Indirapuram,
Ghaziabad, Uttar Pradesh, 201010
E-mail: km.abhay@gmail.com
E-mail: cirp.appl2024@gmail.com
Last date for
submission of claims: January 20, 2024
ANNAPURNA TRADERS: CARE Keeps C Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Annapurna
Traders (AT) continue to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 3.26 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 6.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated January 4,
2023, placed the rating(s) of AT under the 'issuer non-cooperating'
category as AT 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. AT continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
November 20, 2023, November 30, 2023, December 10, 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).
Annapurna Traders (AT) was established as a proprietorship firm in
2007. The firm is primarily engaged in trading of wheat, soyabean,
chana and makka etc. The firm has two manufacturing units located
at Bematara and Nandul, Chhattisgarh with aggregate processing
capacity of 11,520 metric ton per annum (MTPA). AT procures paddy
from farmers & local agents and sells its products through the
wholesalers and distributors located in Chhattisgarh. Mr. Manish
Kumar Gilda, having more than a decade of experience in the rice
milling industry and trading business, looks after the day to day
operations of the firm along with a team of experienced
professionals who have rich experience in the similar line of
business.
ARS SALES: Voluntary Liquidation Process Case Summary
-----------------------------------------------------
Debtor: ARS Sales Private Limited
24, Chowringhee Road,
Kolkata-700087, West Bengal
Liquidation Commencement Date: December 27, 2023
Court: National Company Law Tribunal, Kolkata Bench
Liquidator: Mohan Ram Goenka
46, B.B. Ganguly Street, 406, F1-4th,
Kolkata 700012, West Bengal
E-mail:goenkamohan@gmail.com
Last date for
submission of claims: January 25, 2024
ARSM COMMERCIAL: Voluntary Liquidation Process Case Summary
-----------------------------------------------------------
Debtor: ARSM Commercial Private Limited
24, Chowringhee Road,
Kolkata-700087, West Bengal
Liquidation Commencement Date: December 27, 2023
Court: National Company Law Tribunal, Kolkata Bench
Liquidator: Mohan Ram Goenka
46, B.B. Ganguly Street, 406, F1-4th,
Kolkata 700012, West Bengal
E-mail:goenkamohan@gmail.com
Last date for
submission of claims: January 25, 2024
ARYAVANSH LAND: CARE Keeps C Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Aryavansh
Land Infratech Private Limited (ALIPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.45 CARE C; 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 December 2,
2022, placed the rating(s) of ALIPL under the 'issuer
non-cooperating' category as ALIPL 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. ALIPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated October 28, 2023, November 7,
2023, January 24, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Raipur (Chhattisgarh) based ALIPL is a Private Limited Company
incorporated in 2012, ALIPL has been promoted by Mr. Lakshmi
Jaiswal, Ms.Meera Jaiswal, Mr. Sumit Jaiswal and Mr. Sandeep
Jaiswal. All the directors have an average experience of more than
three decades in the diversified industries. ALIPL has purchased
the Hotel Raipur Inn (HRI) in July, 2014 from Mr. Anand Sharma and
Mr. Sunil Sharma.
ATC LOGISTICS: ICRA Keeps B+ Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA has kept the Long-Term rating of ATC Logistics Private Limited
in the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B+ (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 5.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 22.75 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with ATC Logistics Private Limited, ICRA has been trying to seek
information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
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 ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
ATC Logistics Private Limited (ATC) was promoted in 2009 by Mr.
Tutul Chowdhury, with the objective of providing third-party
logistics solutions. Prior to ATC Logistics Private Limited, Mr.
Tutul Chowdhury was operating through ATC India, a proprietorship
firm engaged in material handling and transportation for other
large logistics solutions providers. Currently, the company
operates out of a logistics facility located at Barasat, Kolkata
and has branches in Sikkim, Jharkhand, Bihar Orissa, Assam,
Meghalaya, Mizoram, Tripura and Arunachal Pradesh to cater to the
requirements of the entire eastern and northeastern regions of the
country.
BDR EDUCATIONAL: Ind-Ra Keeps C Rating in Non-Cooperating
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained BDR Educational
Society's instrument(s) rating in the non-cooperating category. The
issuer did not participate in the surveillance exercise, despite
continuous requests and follow-ups by the agency through emails and
phone calls. Therefore, investors and other users are advised to
take appropriate caution while using the rating. The rating will
continue to appear as 'IND C (ISSUER NOT COOPERATING)' on the
agency's website.
The detailed rating action is:
-- INR66.20 mil. Term loan due on July 31, 2023 maintained in
non-cooperating category with IND C (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
BDR Educational Society is registered under the Andhra Pradesh
Societies Registration Act, 2001. It runs Surya – The Global
School in Baachupally, Hyderabad. The school has a three-acre
campus and offers CBSE curriculum until grade seven. The school
commenced operations in 2013.
BIO AGRO: Ind-Ra Assigns B+ Term Loan Rating, Outlook Stable
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated Bio Agro Energy
Private Limited's (BAEPL) term loan as follows:
-- INR1.70 bil. Term loan due on March 2031 assigned with IND
B+/Stable rating.
Analytical Approach: Ind-Ra has taken a standalone view of BAEPL
to arrive at the rating.
Key Rating Drivers
The rating reflects the time & cost overrun risks associated with
BAEPL's under-construction 66,000 kilo liters per annum grain-based
ethanol manufacturing unit in Sonepur district, Odisha. As of 15
December 2023, BAEPL has already incurred around INR1,371.2 million
on the project (58.5%), out of which INR766.5 million was through
term loans from banks and INR604.9 million was in the form of
equity and unsecured loans. The management expects the commercial
operations to commence from May 2024. Ind-Ra expects the scale of
operations to remain small over the medium term owing to the risk
associated with capacity utilization in the initial stage of
operations.
Liquidity Indicator - Stretched: BAEPL does not have any capital
market exposure and relies on banks and financial institutions to
meet its funding requirements. The total investment for the project
is INR2,347.1 million, of which INR1,700 million (72.4%) will be
funded through term loans and rest INR647.1 million (27.6%) through
promoters' contribution in form of equity or unsecured loans. The
term loan has already been sanctioned, out of which INR766.5
million has been disbursed until date. The company has a repayment
obligation of INR93.2 million and INR210.1 million in FY25 and
FY26, respectively. The company plans to meet its working capital
requirements through proposed fund-based working capital limits of
INR200 million, which will be disbursed post the commencement of
operations. In the event of a delay in capex completion, the
expenses will be funded by promoters.
The rating however favorably factors in the high demand and growing
market for ethanol, aiding medium-term revenue visibility for
BAEPL. The project also has locational advantages due to its
proximity to areas having ample raw material sources.
The rating is also supported by the company's promoter's operating
experience of more than a decade in the related business segments
such as FMCG and agriculture.
Rating Sensitivities
Positive: Timely commencement of operations and achievement of
stable operating profitability could lead to a positive rating
action.
Negative: Any delay in the commencement of operations and achieving
stability in the operating performance after the commencement of
commercial operations, affecting the company's debt serviceability,
could lead to a negative rating action.
Company Profile
Incorporated in September 2021, BAEPL is setting up a 66,000 kilo
liters per annum distillery for the production of ethanol in
Sonepur district, Odisha. The registered office of the company is
located in Khordha, Odisha. Management expects BAEPL to start
operations from May 2024.
BUDDHA SORTEX: ICRA Keeps B+ Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA has kept the Long-Term ratings of Buddha Sortex Rice
Industries Private Limited in the 'Issuer Not Cooperating'
category. The rating is denoted as "[ICRA]B+ (Stable); ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 3.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 3.75 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Buddha Sortex Rice Industries Private Limited, ICRA has been
trying to seek information from the entity so as to monitor its
performance. Further, ICRA has been sending repeated reminders to
the entity for payment of surveillance fee that became due. Despite
multiple 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 ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
BSRIPL, was established in 2013 and is involved in milling and
sorting of non-Basmati rice. The company's unit located at
Hetimpur, Deoria (UP) has an installed capacity of 8 tonne/hour.
The company caters to both domestic and export customers. The
day-to-day operations of the company are managed by Mr. CP Gupta.
BUILDMATE PROJECTS: CARE Keeps C Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Buildmate
Projects Private Limited (BPPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.74 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 9.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated December 20,
2022, placed the rating(s) of BPPL under the 'issuer
non-cooperating' category as BPPL 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. BPPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated November 5, 2023, November 15, 2023, November
25, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Buildmate Projects Private Limited was incorporated in the year
1991 and promoted by Mr.Kesava Reddy and Mrs. Jayasree. The company
is engaged in manufacturing and supply of equipments for AAC
(Autoclaved Aerated Concrete) Plants used in construction industry.
It usually takes up an entire project on turnkey basis, i.e., from
manufacturing of the machinery to installation (which includes
erection, commissioning, installation among others) at customers'
place. The company has an installed capacity for setting up seven
plants per annum.
BYJU'S: NCLT Seeks Response on Teleperformance's Insolvency Plea
----------------------------------------------------------------
Inc42 reports that the Bengaluru bench of the National Company Law
Tribunal (NCLT) on February 7 issued a notice to troubled edtech
giant BYJU'S on an insolvency plea filed by French outsourcing firm
Teleperformance Business Services, sources told Inc42.
Inc42 relates that the Tribunal's Bengaluru bench gave BYJU'S
two-weeks' time to file its response to Teleperformance's plea, the
sources added.
The next hearing in the case is scheduled on March 11, 2024, Inc42
discloses. Teleperformance was represented by its lawyers Sukrit
Kapoor and Aviral Tripathi.
This is the second notice issued by NCLT to the Byju Raveendran-led
firm this week. On February 6, the NCLT issued a notice to BYJU'S
on an insolvency plea filed by digital marketing firm Surfer
Technologies.
Inc42 earlier reported that BYJU'S failed to clear the pending dues
of Teleperformance for various services that the latter provided to
the edtech giant. Sources said that BYJU'S terminated the vendor
contract with Teleperformance without giving prior notice.
"BYJU'S was supposed to provide a three-month notice for any
business ramp down. However, they unexpectedly initiated the ramp
down without adhering to this agreement. This action not only
violated the contractual terms but also had financial implications
as BYJU'S failed to clear an outstanding invoice of approximately
INR3-4 Cr owed to Teleperformance," according to the sources.
According to Inc42, Teleperformace was working closely with BYJU'S
India for various customer service functions and sales operations.
It also helped the edtech major onboard new students for courses.
The development adds to the growing number of insolvency cases
being faced by BYJU'S. The Board of Control for Cricket in India
(BCCI) has already dragged the edtech company to the NCLT over a
payment dispute of INR158 Cr, Inc42 relays.
Last week, BYJU'S overseas lenders for its US$1.2 billion Term Loan
B also filed an insolvency case against the company with the
Bengaluru bench of the NCLT.
Meanwhile, sources said that BYJU'S founder Raveendran is still
negotiating with the US-based lenders to resolve its Term Loan B
issue, Inc42 reports.
Inc42 says the edtech giant has been fighting on multiple fronts
over the last year or so. It has been plagued by various issues,
including a severe cash crunch, layoffs, legal tussle with lenders,
write-offs of subsidiary companies, and growing losses.
As per sources, Raveendran explored multiple ways to raise funds
externally and also via a SPAC deal but failed to do so.
Last month, the company filed its financial statements for FY22
after a long delay. Its consolidated net loss surged 81% to
INR8,245.2 Cr during the year under review from INR4,564.3 Cr in
FY21, Inc42 discloses.
About Byju's
Based in Bengaluru, Karnataka, India, Byju's operates an online
learning platform intended to deliver engaging and accessible
education. The company's platform makes use of original content,
watch-and-learn videos, animations, and interactive simulations
that make learning contextual, visual, and practical, enabling
students to receive a personalized educational experience.
As reported in the Troubled Company Reporter-Asia Pacific on Nov.
23, 2023, the Enforcement Directorate, India's federal financial
crime-fighting agency, has issued a show-cause notice to education
tech company Byju's for alleged violations of foreign exchange
rules, the agency said in a statement on Nov. 11.
Reuters said the agency alleged violations by the company worth
over INR93 billion ($1.12 billion) under the Foreign Exchange
Management Act (FEMA), and has sent notices to founder Byju
Raveendran and parent company Think & Learn Pvt Ltd. Byju's
violated FEMA norms by not submitting documents of imports against
advance remittances made outside India, and failing to realize
proceeds of exports, the Enforcement Directorate said. The company
also delayed filing of documents against the foreign investment
received and failed to allot shares against these, it added.
The TCR-AP, citing Moneycontrol, reported on Jan. 26, 2024, that
foreign lenders, who collectively extended more than 85% of Byju's
$1.2 billion term loan, have filed an insolvency petition against
the online tutor in India, people directly aware of the development
said.
Moneycontrol related that the bankruptcy petition was filed in
January 2024 in the Bengaluru bench of the National Company Law
Tribunal (NCLT), the people said, requesting anonymity.
As reported in the Troubled Company Reporter-Asia Pacific on Feb.
5, 2024, a U.S. unit of Byju's has filed for Chapter 11 bankruptcy
proceedings in the U.S. court of Delaware, listing liabilities in
the range of $1 billion to $10 billion.
Byju's Alpha unit listed its assets in the range of $500 million to
$1 billion, according to a court filing, which showed estimated
creditors in the range of 100 to 199, according to Reuters.
CHENANI NASHRI: Ind-Ra Affirms D Bank Loan Rating
-------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Chenani Nashri
Tunnelway Limited's (CNTL) bank loans' ratings as follows:
-- INR29.760 bil. (INR27,721.1 bil. outstanding on August 30,
2020) Senior long-term bank loans (Long-term)* affirmed with
IND D rating; and
-- INR3.720 bil. (INR3,342.5 bil. outstanding on August 30, 2020)
Subordinated long-term bank loans (Long-term) affirmed with
IND D rating.
* including USD43 million external commercial borrowings
Analytical Approach: Ind-Ra has taken a standalone view of CNTL to
arrive at the ratings.
CNTL has been providing project-related information in a timely
manner since September 2022 in line with regulatory compliance.
Key Rating Drivers
Liquidity Indicator – Poor: The affirmation reflects CNTL's
continued delays in debt servicing since September 2018, as per the
agency's discussions with management and lenders. The ratings also
factor in the lack of any clarity on the right of sponsor-infused
unsecured loans to call an event of default on CNTL's loans.
As per the National Company Law Appellate Tribunal ruling dated 12
March 2020, CNTL continues to be classified as an amber entity,
based on its debt-servicing ability, indicating its inability to
meet all its payment obligations, other than operational and
payment obligations towards senior secured financial creditors.
Company Profile
CNTL, which is wholly owned by IL&FS Transporation Networks
Limited ('IND D'), is a special purpose vehicle created to
implement the four-laning of the Chenani-to-Nashri section of the
National Highway 1A (including a two-lane, 9km tunnel in the
Udhampur district near Jammu).
CSL APOLLO: Voluntary Liquidation Process Case Summary
------------------------------------------------------
Debtor: CSL Apollo ARC Private Limited
410-412,18/12, 4th Floor, w.E.A, Arya
Samaj Road, Karol Bagh, New Delhi,
India, 110005
Liquidation Commencement Date: December 29, 2023
Court: National Company Law Tribunal, Chandigarh Bench
Liquidator: Gyaneshwar Sahai
OS-2, II Floor, The Next Door, Sector-76,
Faridabad, Haryana-121004
E-mail: gyaneshwar.sahai@gmail.com
Contact No: 9953541408
Last date for
submission of claims: January 28, 2024
CUBE HIGWAYS: Voluntary Liquidation Process Case Summary
--------------------------------------------------------
Debtor: Cube Highways Operations Management Pvt. Ltd
Registered Office:
B-376 , Upper Ground Floor,
Nirman Vihar, New Delhi-110092
Corporate Office:
Unit No. 1901, 19th Floor, Tower B,
World Trade Tower, Plot C-1, Sector 16,
Noida-201301
Liquidation Commencement Date: December 26, 2023
Court: National Company Law Tribunal, New Delhi Bench
Liquidator: Shiv Nandan Sharma
129, Navjeervan Vihar, Ground Floor
Near Aurobhindo College,
New Delhi-110017
Email: sharmasn@gmail.com
Email: liquidation.chom@gmail.com
Mobile No: (+91) 9540000212
Last date for
submission of claims: January 25, 2024
DEEPTHY FENISHERS: ICRA Keeps B Debt Rating in Not Cooperating
--------------------------------------------------------------
ICRA has kept the Long-term rating for the bank facilities of
Deepthy Fenishers in the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA]B(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 5.00 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Deepthy Fenishers, ICRA has been trying to seek information
from the entity so as to monitor its performance. Further, ICRA has
been sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple 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 ICRA, the rating has been continued to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
Deepthy Fenishers is a partnership firm established in 1997 and is
providing fabric processing services on job-work basis. The firm is
located in Tirupur (Tamil Nadu) with capabilities for tubular and
open width compacting. The firm was promoted by Mr. Subramaniam and
currently has four partners. Mr. Subramaniam is the managing
partner of the firm having experience of more than a decade in the
textile industry. The firm caters to garment manufacturers located
in and around Tirupur providing fabric processing services.
ECOMOTEL HOTEL: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Ecomotel
Hotel Limited (EHL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 11.65 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 December 15,
2022, placed the rating(s) of EHL under the 'issuer
non-cooperating' category as EHL 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. EHL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated October 31, 2023, November 10, 2023, November
20, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Ecomotel Hotel Limited (EHL) is a special purpose vehicle promoted
by Celebrations, a part of the Celebrations Group which operates
multiple specialty theme luxury hotels and resorts in Central India
and LCL, a Hindustan Construction Company Limited (HCC) group
company. EHL operates a mid-priced 130 room hotel at Lavasa under
the brand name 'Mercure Lavasa'. The hotel's built up area is
around 77,000 square feet with 97 standard rooms, 31 superior rooms
and 2 family rooms. Also, the hotel operates four inhouse
restaurants suiting different requirement of customers. The hotel
is operated by AAPC Singapore PTE Limited (Mercure Hotels) who are
paid 6% of gross room rent as operating fees, in addition to other
fees as per agreement.
EMERALD HEIGHTS: CARE Keeps B+ Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Emerald
Heights Academy & Realty Private Limited (EHARPL) continues to
remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 23.39 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 December 1,
2022, placed the rating(s) of EHARPL under the 'issuer
non-cooperating' category as EHARPL 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.
EHARPL continues to be non-cooperative despite repeated requests
for submission of information through e-mails, phone calls and a
letter/email dated October 17, 2023, October 27, 2023, November 6,
2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Indore (Madhya Pradesh) based Emerald Heights Academy and Realty
Private Limited (EHARPL) was incorporated in January 1991 by Mr
Muktesh Singh Girnar along with his family members with an
objective to provide educational support activities to Emerald
Heights School Samitee (EHSS) which runs a senior secondary day-cum
boarding co-educational school since 1982 under the name of Emerald
Heights International School (EHIS). EHAR has given two academic
buildings on lease to EHSS and also provide 700 bed hostel
facilities, catering, house- keeping and other service as well as
school training and coaching facility to EHSS. Further, the company
is also operating a pre-primary school.
EVEREST SEA: CARE Lowers Rating on INR10.10cr LT Loan to B
----------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Everest Sea Foods Private Limited (ESFPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.10 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B+; Stable
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated December 29,
2022, placed the rating(s) of ESFPL under the 'issuer
non-cooperating' category as ESFPL 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. ESFPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated November 14, 2023, November
24, 2023, December 4, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of ESFPL have been
revised on account of non-availability of requisite information.
The revision further considers reported operating losses during
FY23.
Mangalore based, Everest Sea Foods Private Limited (ESFPL) was
incorporated on June 7, 2012 and started its commercial operations
from October, 2012. The company is currently managed by Mr. Waseem
Machiwala, Mr. Sanjay K Jaokar, Mr. Sumeet Jaokar and Mr. Sindhuram
Puthram who has more than three decades of experience in the sea
food industry. The company is engaged in processing, packing and
exporting of marine products.
FATEH CHAND: Ind-Ra Affirms BB+ Rating, Outlook Positive
--------------------------------------------------------
India Ratings and Research (Ind-Ra) has taken the following rating
actions on Fateh Chand Charitable Trust's (FCCT) bank facilities:
-- INR49.3 mil. (reduced from INR93.3 mil.) Term loan due on
December 2027 affirmed; Outlook revised to Positive from
Stable with IND BB+/Positive rating;
-- INR100.0 mil. Non-fund-based bank facilities (bank guarantee)
affirmed; Outlook revised to Positive from Stable with IND
BB+/Positive rating; and
-- INR295 mil. Fund-based bank facilities affirmed; Outlook
revised to Positive from Stable with IND BB+/Positive/IND A4+
rating.
Analytical Approach: Ind-Ra continues to take a standalone view of
FCCT to arrive at the ratings.
The Positive Outlook reflects Ind-Ra's expectation of a further
improvement in the trust's scale of operations, coupled with a
sustained profitability and a likely reduction in the net debt over
the near-to-medium term, resulting in comfortable credit metrics.
Key Rating Drivers
Ind-Ra expects FCCT's student headcount to continue to increase
gradually in the near-to-medium term on the back of an increase in
annual intake for Bachelor of Medicine and Bachelor of Surgery
(MBBS) course to 200 in FY24 (FY23: 150) and post-graduation (PG)
courses to 229. FCCT's overall student headcount increased to 1,451
in FY23 (FY22: 1,401, FY21: 1,385), mainly due to a rise in the
headcount under PG courses to 196 (166, 146) and under graduate
courses to 505 (485, 491). The trust's MBBS course has been running
at almost full capacity. The student headcount is likely to
increase to 1,565 in FY24, indicating FCCT's comfortable position
in Muzaffarnagar.
FCCT's revenue grew at a CAGR of 6.1% to INR1,659.2 million over
FY19-FY23 (FY23: up 4.2% yoy) owing to the increase in total
headcount, marginally offset by a decline in the average revenue
per student in PG courses and almost stable average revenue per
student in MBBS course. With the COVID-19-related stress largely
waning, Ind-Ra expects FCCT's revenue to increase further in FY24
with the increase in enrolments under MBBS and PG courses. Further,
the agency expects the average revenue per student to increase in
FY24 and thereafter. Unlike private universities, FCCT can increase
its annual intake only after obtaining regulatory approvals,
thereby limiting the growth in student headcount and revenue.
Despite the revenue growth, the trust's margins remained almost
stable at 11.5% in FY23 (FY22: 11.6%) owing to an increase in
administrative and operating costs.
The Positive Outlook also reflects FCCT's reduced debt burden with
the total debt declining to INR336.0 million at FYE23 (FYE22:
INR524.0 million) owing to a limited dependence on external
borrowings to meet its working capital and capex requirements.
Ind-Ra expects FCCT's net leverage (net debt/EBITDA) to reduce
further in FY24 as the trust has already undertaken the required
capex to accommodate higher MBBS enrolments. Ind-Ra expects only
regular maintenance capex in the near-to-medium term, which will be
majorly funded through internal accruals. The average maximum
utilization of FCCT's fund-based working capital limits stood at
66.3% over the 12 months ended December 2023.
Ind-Ra expects the credit metrics to improve in the near-to-medium
term on the back of a likely healthy EBITDA generation (FY23:
INR191.4 million, FY22: INR184.1 million). The net leverage (net
debt/EBITDA) improved to 1.6x in FY23 (FY22: 2.2x) owing to reduced
dependence on external borrowings to meet the working capital
requirements coupled with scheduled repayment of term loans.
However, the interest coverage (EBITDA/interest) moderated to 6.4x
in FY23 (FY22: 7.6x) owing to higher interest obligation, partially
offset by an increase in the EBITDA.
The ratings remain constrained by regulatory risks associated with
the education sector in India. Any adverse regulatory changes in
the central/state government policies and regulations could impact
FCCT's operations. The key medical courses taught by the trust are
MBBS, Doctor of Medicine, Master of Surgery and Nursing courses.
The fees charged by medical colleges for such courses is decided by
the respective state's fee fixation committee. Hence, any
regulatory action causing a downward revision in the fees charged
for such courses could impact the revenue of the trust adversely.
Hence, fees fixation policy by the government remains a key
monitorable.
Liquidity Indicator – Adequate: The cash flow from operations
surged to INR227.1 million in FY23 (FY22: INR89.4 million) mainly
on account of realization of receivables (FY23: INR82.7 million,
FY22: INR409.7 million). During FY22, the admission process for
both MBBS and PG courses were delayed due to covid-related
disruptions and accordingly, a major part of fees due from the
fresh batch of students was outstanding as of FY22; these dues were
majorly recovered by end-April 2022. The trust had cash and bank
balances of INR39.3 million at FYE23 (FYE22: INR115.0 million).
Furthermore, the trust had fixed deposit receipts of INR19.9
million provided for the affiliation of the courses, bank
guarantees, Muzaffarnagar District Authorities and National
Highways Authority of India (NHAI; debt rated at 'IND
AAA'/Stable).Ind-Ra expects the trust to comfortably meet the
scheduled repayments of two covid loans aggregating to INR22.0
million and INR24.3 million in FY24 and FY25, respectively, on the
back of a likely healthy cash flow generation.
Rating Sensitivities
Positive: Events that could individually/collectively, on a
sustained basis, lead to a positive rating action are:
- an increase in the revenue above INR1,900 million,
- the net leverage remaining below 2.0x.
Negative: Events that could individually/collectively, on a
sustained basis, lead to a revision in the Outlook back to Stable
are:
- revenue remaining below INR1,900 million,
- any stress in liquidity and/or any large debt-funded capex,
leading to the net leverage increasing above 2.0x.
Company Profile
Established in 2005, FCCT is chaired by Nitin Agrawal. Approved by
National Medical Commission, Muzaffarnagar Medical College and
Hospital, under FCCT's aegis, started its operation in 2006. The
courses offered are MBBS, PG along with para-medical courses to
impart nursing education and training. The hospital with a capacity
of 950 beds, was established primarily to support the college as a
teaching hospital.
GO FIRST: Three Bidders Lodge EOIs for Carrier
----------------------------------------------
ch-aviation reports that three entities have submitted formal
expressions of interest (EOIs) to buy insolvent budget carrier Go
First (GOW, Mumbai International), prompting its committee of
creditors (CoC) to meet to decide on applying to India's National
Company Law Tribunal (NCLT) for an extension of time to sell the
airline.
Reuters reported that the influential committee had decided to
request the extension to allow for time to conduct due diligence on
the potential buyers, ch-aviation relays. A sale would reap a
better return for the creditors than liquidation. India's
insolvency laws allow administrators up to 330 days to sell a
distressed company. As of early February, administrators and the
CoC have around 60 days left.
Go First suspended operations in May 2023. Its administrators have
since admitted outstanding debts of more than INR62 billion (USD748
million). Last month, ch-aviation reported that the CoC approved
the administrators making one final effort to secure a buyer after
earlier sales campaigns had generated interest, but nothing more
than that.
Since then, three potential buyers have lodged formal expressions
of interest (EOIs) and the required INR50 million (USD603,000) bank
guarantee. They include a recently recapitalised SpiceJet (SG,
Delhi International), Sharjah-based Sky One, and an entity called
Busy Bee. The latter has ties to individuals associated with a
consortium called Plan It that was previously in the mix of
potential buyers.
An extension of time would allow for the preparation of formal
bids, ch-aviation says. However, the administrator and the CoC must
settle on a new deadline and return to the NCLT to ratify the new
date. The CoC is believed to be meeting to fix the date, with the
administrator expected to return to the NCLT imminently.
About Go First
Go First, formerly known as GoAir, was an Indian ultra-low-cost
airline based in Mumbai, Maharashtra. Go First was incorporated in
April 2004 as GoAir and commenced flight operations in November the
following year. Its inaugural flight was from Mumbai to Ahmedabad.
The airline is owned by the Wadia Group.
Go First filed an application for voluntary insolvency resolution
proceedings before National Company Law Tribunal (NCLT) on May 2,
2023.
The company said the filing with the NCLT comes after Pratt &
Whitney, the exclusive engine supplier for the airline's Airbus
A320neo aircraft fleet, refused to comply with an order to release
engines to the airline that would have allowed it return to full
operations.
Go First owes INR6,521 crore to its financial creditors, Bank of
Baroda, IDBI Bank, and Deutsche Bank. The airline has a total
liability of about INR11,463 crore to banks, other creditors,
vendors, and others.
On May 10, 2023, the NCLT accepted Go First's voluntary insolvency
petition. The NCLT bench appointed Abhilash Lal as the interim
resolution professional to look after the affairs of Go First and
also suspended its board as part of the insolvency resolution
process.
GOLDEN JUBILEE: CARE Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Golden
Jubilee Hotels Private Limited (GJHPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 495.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Long Term/ 50.00 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated November 30,
2022, placed the rating(s) of GJHPL under the 'issuer
non-cooperating' category as GJHPL 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. GJHPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated October 16, 2023, October 26,
2023, November 5, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Golden Jubilee Hotels Ltd. (GJHL) was incorporated as Golden
Jubilee Estates Ltd. in December, 1996 and remained dormant till
2004. The name of the company was changed to current nomenclature
in December, 2006. GJHPL is a special purpose vehicle (SPV) formed
for development of two five Star hotel properties under the name of
Trident and Oberoi at Hyderabad. The project work of Trident
(branded as Five Star Deluxe) has been completed and the hotel
commenced operation from September 1, 2013. However, there has been
change in plan with regard to construction of The Oberoi and the
same is being replaced with a five-star business hotel cum service
apartment.
GOLDEN MANDHIR: CARE Keeps B- Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Golden
Mandhir Retail Private Limited (GMRPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 36.08 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated December 27,
2022, placed the rating(s) of GMRPL under the 'issuer
non-cooperating' category as GMRPL 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. GMRPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated November 12, 2023, November
22, 2023, December 2, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Stable
Golden Mandhir Retail Private Limited (GMRPL) is engaged in the
retail business. It owns and operates Raymond and Hyundai
showrooms. The promoters of GMRPL, Mr R Padmanabhan, Mr P Gokula
Krishnan and Mr Chindamani, were engaged in the textile showroom
business under various names [Golden Mandhir (established in 1997),
Golden Fort (2001 and 2005), Golden Fab (2009), Golden Trendz
(2010) and Golden Fashions (2012)] in various cities of Tamilnadu
as proprietorship and partnership firms. Subsequently in 2013, when
the promoters decided to open another showroom in Salem, they
decided to consolidate the operations of a select set of show rooms
under a common flagship company. The promoters had established a
private limited company in the name of M.R.Spinning Mills Private
Limited (MRS) in 1989, but had not carried out any operations in
it. In 2013, MRS was renamed GMPL and it took over the business of
Golden Mandhir and Golden Fort. GMRPL in July 2014, ventured into
automobiles sector and became an exclusive dealer of Hyundai in
Salem. Presently, GMRPL operates 4 exclusive Raymond showrooms, 2
Hyundai showrooms and a retail outlet in the name of 'Easybuy'
(2015) – franchisee of M/s Lifestyle International Private
Limited. The day to day activities of GMRPL are managed by Mr R
Padmanabhan and Mr P Gokula Krishnan.
GREEN MIRROR: CARE Keeps D Debt Rating in Not Cooperating Category
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Green
Mirror Buildcon Private Limited (GMBPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 11.50 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 December 1,
2022, placed the rating(s) of GMBPL under the 'issuer
non-cooperating' category as GMBPL 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. GMBPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated October 17, 2023, October 27,
2023, November 6, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Incorporated in September 2013, Ahmedabad (Gujarat)-based GMBPL is
promoted by two promoters namely Mr Suresh Badgujar and Mr.
Jitendra Badgujar. GMBPL is undertaking a greenfield project to
manufacture Autoclaved Aerated Concrete (AAC) blocks/bricks with
proposed installed capacity of 1,00,000 Cubic Meters per Annum
(CMPA) at its plant located at Kheda district of Gujarat.
GURUDEVA CHARITABLE: Ind-Ra Keeps D Rating in Non-Cooperating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Sree Gurudeva
Charitable And Educational Trust's instrument(s) rating in the
non-cooperating category. The issuer did not participate in the
surveillance exercise, despite continuous requests and follow-ups
by the agency through emails and phone calls. Therefore, investors
and other users are advised to take appropriate caution while using
the rating. The rating will continue to appear as 'IND D (ISSUER
NOT COOPERATING)' on the agency's website.
The detailed rating action is:
-- INR161.24 mil. Bank Loan maintained in non-cooperating
category with IND D (ISSUER NOT COOPERATING) rating; and
-- INR70 mil. Fund Based Working Capital Limit maintained in non-
cooperating category with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
Sree Gurudeva Charitable and Educational Trust was established in
2008 in Pallickal, Kerala. The trust has been managing Sri
Vellappally Natesan College of Engineering since 2008 and offers
B.Tech and M.Tech courses. Tushar Vellapally is the chairman of the
trust.
HARMAN COTTEX: Ind-Ra Cuts Bank Loan Rating to BB+
--------------------------------------------------
India Ratings and Research (Ind-Ra) has taken the following rating
actions on Harman Cottex & Seeds Private Limited's (HCSPL) bank
facilities:
-- INR725 mil. Fund-based working capital limit downgraded;
Placed on Rating Watch with Developing Implications with
IND BB+/Rating Watch with Developing Implications.
Analytical Approach: Ind-Ra continues to take a standalone view on
HCSPL to arrive at the ratings.
The downgrade reflects deterioration in HCSPL's revenue, EBITDA
margins and credit metrics in FY23, due to the company facing a
shortage in raw materials, leading to lower capacity utilization of
the plant. Furthermore, even though Ind-Ra expects the revenue to
significantly improve during FY24, its margins and net leverage are
likely to remain modest given the company's debt-funded capex.
Ind-Ra has placed the ratings on Rating Watch with Developing
Implications following HCSPL's acquisition of a spinning unit in
Butibori (Nagpur) during FY24, the operations of which are likely
to commence in January 2024, as per the management. The agency
shall monitor the operating and financial performance of the
spinning unit along with the overall financial performance of the
company during the next six months.
Key Rating Drivers
HCSPL's scale of operations remained medium, with its revenue
declining significantly to INR2,985.74 million in FY23 (FY22:
INR5,654.37 million), due to a shortage of raw materials in the
market, leading to lower capacity utilization of the plant. The
contribution its cotton trading reduced significantly to 13.3% to
the total revenue in FY23 (FY22: 72.6%), as the company focused on
increasing its value-added products in the portfolio. Furthermore,
HCSPL acquired machinery on lease, owned by Puneet Enterprises in
December 2022, leading to an increase in HCSPL's extraction and oil
processing capacity, thereby boosting its manufacturing segment's
revenue. During 8MFY23, HCSPL achieved revenue of INR3,308.4
million. The company started manufacturing and retail sales of
garments and denim-wear under brand name 'Threads of Harman's from
FY23.
In FY24, the company acquired a spinning unit at Butibori (Nagpur)
that has an installed capacity of 12,640 metric tons to manufacture
blended yarn. The unit was acquired under corporate insolvency
resolution process of CLC Industries Limited, among other intending
buyers, through a resolution plan approved by the National Company
Law Tribunal. The total cost of acquisition of the unit was around
INR420 million, which was funded through a sanction of a term loan
of INR398 million (disbursed till date: INR315 million), unsecured
loans from the promoters and relatives of INR70 million and the
balance through its internal accruals and the release of working
capital. Furthermore, the management expects to incur INR150
million to improve the unit over the next one year. The capex would
be funded from the disbursement of the balance loan amount of INR83
million and the remainder through a mix of internal accruals and
unsecured loans. The company has entered into the spinning and
garmenting segments as part of its forward integration drive.
Ind-Ra expects HCSPL's revenue to significantly improve during
FY24, led by its expansion plans and increased revenue from the
manufacturing segment.
HCSPL credit metrics was weak, with the gross interest coverage
(operating EBITDA/gross interest expense) deteriorating to 1.15x in
FY23 (FY22: 18.62x) and the net financial leverage (adjusted net
debt/operating EBITDA) increasing to 24.53x (0.27x), due to a
decline in its EBITDA to INR13.38 million (INR330.26 million) and
an increase in its net debt to INR328.20 million (INR88.43
million). In FY24, Ind-Ra expects the credit metrics to improve,
due to a likely increase in the EBITDA; however, the net leverage
would remain modest, due to the debt-funded acquisition of spinning
unit.
HCSPL's EBITDA margins were modest and deteriorated to 0.45% in
FY23 (FY22: 5.84%), due to increased operational expenses and
unabsorbed fixed costs following the decline in its revenue. The
return on capital employed deteriorated to 0.9% in FY23 (FY22:
64.7%). In FY24, Ind-Ra expects the EBITDA margin to improve, but
would be modest, supported by better absorption of its fixed costs
with the rise in scale. The company has a forward contract limit
wherein it can hedge its imports to mitigate the currency
fluctuation risk. The improvement in its margins remains a key
rating monitorable.
Liquidity Indicator: Stretched: HCSPL does not have any capital
market exposure and relies only on banks and financial institutions
to meet its funding requirements. In FY23, the cash flow from
operations turned negative to INR227.88 million (FY22: INR132.79
million) on account of a significant decline in the operating
EBITDA and unfavorable changes in the working capital requirement.
Subsequently, the free cash flow also turned negative at INR237.69
million (FY22: INR110.82million). The net working capital cycle
increased to 90 days in FY23 (FY22: 31) as the debtor days rose to
63 (26) and the inventory days increased to 66 (20). The company
has a long-term debt repayment obligation of INR32.6 million, INR99
million and INR94.9 million for FY24, FY25 and FY26, respectively.
The unencumbered cash balance stood at INR137.13 million at FYE23
(FYE22: INR63.23 million). HCSPL's average maximum utilization of
its fund-based working capital limits was 60.95% during the 12
months ended November 2023.
The cotton trading and processing industry is characterized by the
presence of a large number of organized and unorganized players,
affecting the company's competitiveness. Furthermore, the company
has low bargaining power with its customers as the latter typically
have a large scale of operations and have the ability to switch to
other suppliers, given the commoditized nature of HCSPL's products.
However, according to the management, as the group entities are
engaged in a similar line of operations and the promoters have
access to various companies in the cotton industry, the competition
risk is mitigated to a large extent.
The ratings, however, are supported by HCSPL's promoters' more than
25 years of experience in the textile industry.
Rating Sensitivities
The Rating Watch with Developing Implications indicates that the
ratings may be upgraded, downgraded or affirmed. The agency would
monitor the developments on the operating and financial performance
of the spinning unit along with overall financial performance of
the company in the next six months.
Company Profile
Incorporated in 2009 and based in Madhya Pradesh, HCSPL is engaged
in ginning and pressing of cotton, oil extraction from cotton seeds
and trading of cotton. The company also manufactures and sells
garments under the brand "Threads of Harman" and has five retail
stores across Indore, Ujjain, Mau and Bhopal. Beside this, the
company has acquired a spinning unit during FY24, for which the
operations are expected to commence January 2024 onwards.
HEAVY ENGINEERING: Ind-Ra Moves D Rating to NonCooperating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Heavy Engineering
Corporation Limited's (HECL) bank facilities to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency through
emails and phone calls. Therefore, investors and other users are
advised to take appropriate caution while using these ratings. The
ratings will now appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.
The detailed rating actions are:
-- INR2.0 bil. Fund-based limits (Long Term) migrated to non-
cooperating category with IND D (ISSUER NOT COOPERATING)
rating; and
-- INR1.88 bil. Non-fund-based limits (Short term) migrated to
non-cooperating category with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING; The issuer did not cooperate; based
on the best available information. The ratings were last reviewed
on October 19, 2022. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
Company Profile
Heavy Engineering Corporation was set up in 1958 in Ranchi under
the Ministry of Heavy Industries and Public Enterprises. The
company manufactures capital goods/spare parts for companies from
the steel, mining, engineering, defense, railways and other
sectors. It also executes turn-key projects, from concept to
commissioning.
IHHR HOSPITALITY: CARE Keeps B+ Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Ihhr
Hospitality (Andhra) Private Limited (IHPL) continues to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 56.56 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 December 14,
2022, placed the rating(s) of IHPL under the 'issuer
non-cooperating' category as IHPL 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. IHPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated October 30, 2023, November 9, 2023, November 19,
2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
IHHR Hospitality (Andhra) Pvt Ltd, incorporated in 2005, is a
subsidiary of IHHR Hospitality Pvt Ltd (74% stake). The company
owns a single hotel- 'Hyatt Hyderabad', a 166 keys five-star hotel
built on a site admeasuring 15.39 acres. The hotel became
operational in the year 2007 and comprises Conference and Banquet
halls, SPA & Wellness Centre and dining hall with 139 seats,
Speciality hall with 73 seats and Lounge with 46 seats spread in an
area of 6550 sq. Ft.
JVS BIOFUELS: CARE Lowers Rating on INR80cr LT Loan to D
--------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
JVS Biofuels Private Limited (JVSBPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 80.00 CARE D; Rating removed from
Facilities ISSUER NOT COOPERATING
category and Revised from
CARE B+; Stable
Rationale and key rating drivers
In the absence of required information for monitoring the ratings,
CARE Ratings Ltd (CARE) had placed the rating of bank facilities of
JVSBPL into 'ISSUER NOT COPERATING' in line with the extant SEBI
guidelines. However, the entity has now submitted the requisite
information. Hence, CARE Ratings Ltd has carried out a full review
of the ratings and the ratings are removed from "ISSUER NOT
COOPERATING" category and revised to "CARE D".
The revision in the ratings assigned to the bank facilities of JVS
Biofuels Private Limited (JVSBPL) takes into consideration frequent
delays in debt servicing obligations in recent past due to delay in
commencement of commercial operations, delay in collection from
debtors (IOCL, BPCl, HPCL), weak liquidity and near full limit
utilization. There were multiple instances of delay in servicing
term debt interest during 9MFY24 (refer to the period April 2023 to
December 2023). Further, the ratings are constrained by limited
experience of promoters in the ethanol industry, however,
weaknesses are partially offset with locational advantage available
for the project site with close proximity to raw materials
procurement sources.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Improvement in liquidity with timely debtors' collection leading
to delay/default free track of 90 days.
* Improvement in operational performance with envisaged production,
sales and profitability.
Analytical approach: Standalone
Outlook: Not Applicable
Detailed description of the key rating drivers:
Key weaknesses
* Delay in debt servicing: There have been multiple instances of
delay in servicing of term loan interest in the recent past owing
to delay in commencement of operational activity (actual COD is
October 28, 2023 as against the expected COD of December 2022),
delay in collection from debtors (IOCL, BPCl, HPCL), weak
liquidity. Furthermore, there have been instances of penal charges
being levied in the term loan statement.
* Limited experience of promoters in the ethanol industry: The
company is promoted by Mr. Sunil Singla, Mr. Jitender Jindal, and
Mr. Vinod Jindal, who have an existing experience of around 20
years in the manufacturing of food products, including all kinds of
spices, pickles, jams, squashes etc., however, promoters have
limited experience in successfully commissioning and running up of
green field projects. The project will be managed by Mr. Sunil
Singla, who has pursued his graduation in Bachelor of Engineering
Electronics, ably supported by Mr. Jitender Jindal and Mr. Vinod
Jindal, who will oversee the production and finance functions
respectively.
Key strengths
* Locational Advantage: The company has procured 15.925 acres of
land to set-up grain-based ethanol distillery at Village Jatwar,
Ambala. The plant is located in North-Indian region, Punjab and
Haryana which are the major paddy producing states, having highest
number of rice mills which facilitates procurement of grains and
other agro based products during season.
Liquidity: Poor
The company has poor liquidity position marked by delays in payment
of interest for term loans inadequate operational cash flows due to
timing mismatch and full CC limit utilization.
JVS Biofuels Private Limited was incorporated on January 22, 2021,
by Mr. Sunil Singla, Mr. Jitender Jindal, and Mr. Vinod Jindal, who
have an existing experience of around 20 years in the manufacturing
of food products, including all kinds of spices, pickles, jams,
squashes etc. The company has setup a greenfield project for the
manufacture of fuel ethanol alongside its by-product, Distillery
Dried Grain Soluble (DDGS). The same is under the ambit of Ethanol
Blending Programme (EBP) policy of GOI, whereby the company has
entered into Long-term Offtake Agreement (LTOA) with Oil Marketing
Companies like Indian Oil Corporation Limited (IOCL), Bharat
Petroleum (BP) and Hindustan Petroleum (HP) for supply of 2.64
litre (i.e., 80, 000 LPD) of ethanol.
K.P. CHACKO: CARE Keeps B- Debt Rating in Not Cooperating Category
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of K.P. Chacko
and Sons (KCS) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 17.00 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 January 10,
2023, placed the rating(s) of KCS under the 'issuer
non-cooperating' category as KCS 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. KCS
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated November 26, 2023, December 6, 2023, January 19,
2024.
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).
K.P. Chacko & Sons (KCS) based at Kerala was established in the
year 1992 as a partnership firm by Mr. Jerald Jacob and his wife
Mrs. Rajee Jerald. The firm is mainly engaged in retailing of
jewellery, ethnic gold and stone studded ornaments along with
silver jewellery and gift articles. KCS has its retail showroom
located at Thodupuzha, Kerala in around 2000 sq. ft. area. Around
95% of the total revenues of the firm are generated from sale of
gold and gold ornaments while balance of the sales is being done
from sale of silver and silver articles.
KALAVAKURU ESTATES: Ind-Ra Assigns B+ Bank Loan Rating
------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated Kalavakuru Estates
Private Limited's (KEPL) bank facilities as follows:
-- INR20 mil. Fund-based working capital limit assigned with IND
B+/Stable/IND A4 rating; and
-- INR200 mil. Term loan due on December 30, 2031 assigned with
IND B+/Stable rating.
Analytical Approach: Ind-Ra has taken a standalone view of KEPL to
arrive at the ratings.
Key Rating Drivers
The ratings reflect the net losses of INR46.22 million incurred by
KEPL in FY23 (FY22: loss of INR11.075 million) due to fixed
overheads and low occupancy. The management expects the losses to
continue in FY24 and KEPL to turn profitable only post FY25. The
company started its hotel operations in FY23 with a capacity of 42
rooms. KEPL's small scale of operations is reflected in a revenue
of INR97.53 million in FY23 (FY22: INR19.19 million) with a 41%
occupancy level. The company had only two commercial rental
properties until FY22. KEPL saw a 51% occupancy level in 1HFY24 and
booked a revenue of INR100 million in 9MFY24. The total project
cost of INR546.9 million was funded through a bank debt of INR271.5
million and the remaining through promoters' contribution in the
form of equity infusion and unsecured loans of INR234.2 million and
internal accruals of INR41.2 million. Ind-Ra expects the scale of
operations to remain small over the medium term, as the occupancy
rate would be low in the initial years.
Liquidity Indicator - Poor: The cash flow from operations turned
negative at INR7.61 million in FY23 (FY22: INR1.55 million), due to
an increase in the working capital cycle requirements. Furthermore,
the free cash flow was negative at INR21.51 million in FY23 (FY22:
negative INR92.18 million). KEPL's average maximum utilization of
the fund-based limits was 53.91% during the five months ended
December 2023. The fund-based working capital limit of INR20
million was sanctioned in August 2023. The net working capital
cycle stood at 66 days in FY23 and is likely to shorten over the
medium term. The cash and cash equivalents stood at INR1.51 million
at FYE23 (FYE22: INR4.16 million). Furthermore, KEPL does not have
any capital market exposure and relies on banks and financial
institutions to meet its funding requirements. KEPL has scheduled
debt repayment obligations of INR44.5 million and INR45.2 million
in FY24 and FY25, respectively.
The ratings also reflect KEPL's modest credit metrics with an
interest coverage (operating EBITDA/gross interest expenses) of
0.63x in FY23 (FY22: 7.11x) and a net leverage (adjusted net
debt/operating EBITDAR) of 15.74x (20.98x). In FY23, the interest
coverage declined due to an increase in the interest expenses to
INR28.9 million in FY23 (FY22: INR1.76 million) and the net
leverage improved due to increase in absolute EBITDA to INR18.25
million (INR12.52 million). Ind-Ra expects the credit metrics to
remain modest in FY24 and FY25 due to the similar nature of
operations.
The ratings also reflect in KEPL's modest EBITDA margin of 18.71%
in FY23 (FY22: 65.24%) with a return on capital employed of
negative 3.3% (negative 1.3%). In FY23, the EBITDA margin declined
due to a change in the nature of business from rental properties to
hospitality. In FY24, Ind-Ra expects the EBITDA margin to stabilize
due to a better absorption of cost, aided by increased occupancy
levels.
Rating Sensitivities
Positive: A significant increase in the scale of operations, along
with an improvement in the overall credit metrics with the interest
coverage increasing above 1.5x and an improvement in the liquidity
profile, all on a sustained basis, could lead to a positive rating
action.
Negative: A decline in the scale of operations, leading to
deterioration in the overall credit metrics and further pressure on
the liquidity position, could lead to a negative rating action.
Company Profile
Incorporated in 2006, KEPL operates a five-star hotel with 42 rooms
in Wayanad, Kerala. The promoters are Sundararama Reddy and Jaysena
Reddy. KEPL has two commercial rental properties and ventured into
the hospitality industry in 2022.
KARPAGAMBAL MILLS: Ind-Ra Assigns BB+ Rating, Outlook Stable
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated Sree Karpagambal
Mills Ltd.'s (SKML) bank facilities as follows:
-- INR235 mil. Fund-based working capital limits assigned with
IND BB+/Stable/IND A4+ rating;
-- INR623.90 mil. Term loans due on March 31, 2034 assigned with
IND BB+/Stable rating; and
-- INR9.8 mil. Non-fund-based working capital limits assigned
with IND A4+ rating.
Analytical Approach: Ind-Ra has taken a standalone view of SKML to
assign the ratings.
Key Rating Drivers
The ratings reflect SKML's modest credit metrics due to modest
margins. The net leverage (total adjusted net debt/operating
EBITDAR) improved slightly to 4.36x in FY23 (FY22: 4.47x) due to a
reduction in debt to INR487 million (INR532.31 million). The
interest coverage (operating EBITDA/gross interest expenses),
however, deteriorated to 1.93x in FY23 (FY22: 2.94x) because of a
rise in interest cost rose to INR51.13 million (INR36.15 million),
due to an increase in bank interest rate to 10.05% from 9% and a
decline in the operating EBITDA to INR98.60 million (INR106.28
million). Ind-Ra expects the credit metrics to remain at similar
levels in FY24, but the metrics might weaken over the medium term
owing to an increase in long-term debt by INR430 million to fund
capex of INR615 million. The company plans to undertake the capex
for installing an additional 27,360 spindles and minor building
alterations. The remaining amount of capex will be funded through
internal accruals and unsecured loans from promoters.
The ratings reflect SKML's small scale of operations, with revenue
of INR1,207.10 million in FY23 (FY22: INR1,366.03 million). The
revenue declined due to an increase in raw cotton prices during
FY23 in the domestic market. Furthermore, the textile sector was
impacted by a fall in demand in the global markets, such as Europe
and the US, and the ongoing Russia-Ukraine war. During 7MFY24, the
company booked a revenue of INR649.77 million. Ind-Ra expects the
revenue to be stable on a yoy basis in FY24, as the increase in
orders would be offset by a fall in realizations.
The ratings are constrained by the modest EBITDA margins due to the
nature of the business. Furthermore, the margins have been
volatile owing to fluctuations in raw material prices. The margin
rose to 8.17% in FY23 (FY22: 7.78%) due to a decline in power
costs, resulting from the installation of a solar windmill at the
beginning of the year. The ROCE was 7.2% in FY23 (FY22: 8%).
Ind-Ra expects the EBITDA margins to remain volatile in FY24 and
over the medium term. due to susceptibility to fluctuations in raw
material prices.
Liquidity Indicator – Stretched: SKML's average maximum
utilization of the fund-based limits was 92.5% during the 12 months
ended November 2023. In FY23, the cash flow from operations
declined to INR59.5 million (FY22: INR73.59 million) on account of
a decline in EBITDA and increase in interest cost. However, the
company's free cash flow turned positive at INR56.8 million in FY23
(FY22: negative INR143.02 million) due to minimal capex of INR2.7
million undertaken during the year (INR216.61 million). In FY23,
while debtor days were stable at 48 days (FY22: 48 days), the net
working capital cycle stretched to 97 days (FY22: 90 days), due to
an increase in inventory days to 89 days (87) and creditor days to
40 days (45 days). SKML had cash and cash equivalents amounting to
INR57.3 million at FYE23, against repayment obligations of INR28.3
million in FY24 and INR52 million in FY25. SKML does not have any
capital market exposure and relies on banks and financial
institutions to meet its funding requirements.
The ratings factor in the intense competition in the textile
industry due to the existence of a large number of organized and
unorganized players, and low entry barriers. Furthermore, cotton
prices in India are regulated through a fixed minimum support price
by the government, and cotton players depend on price parity. The
price of raw cotton also depends on the area under production,
annual yield, international demand supply scenario, export quota
decided by the government and the previous year's inventory,
exposing it to price volatility risk.
The ratings, however, benefit from the promoters' experience of
more than six decades in yarn and fabric manufacturing, leading to
well-established relationships with customers as well as
suppliers.
Rating Sensitivities
Negative: A decline in the scale of operations, leading to
deterioration in the credit metrics and/or weakening of the
liquidity position, both on a sustained basis, will be negative for
the ratings.
Positive: Timely completion of capex, leading to a substantial
increase in the scale of operations, along with an improvement in
the liquidity position and the credit metrics, with the leverage
falling below 3.5x, on a sustained basis, will be positive for the
ratings.
Company Profile
Incorporated in 1956, SKML manufactures cotton yarn and fabrics.
The company's manufacturing unit, which is located in Rajapalyam,
Tamil Nadu, has an installed capacity of 48,000 spindles for the
yarn division and 54 looms for the fabric division. The company
also has a solar wind mill, with a total installed capacity of 5MW.
The company is promoted by A. Palaniappan.
KOLEKTOR TECHNOLOGIES: Voluntary Liquidation Process Case Summary
-----------------------------------------------------------------
Debtor: Kolektor Technologies India Private Limited
E-49, Opp Sainik Vihar Gate Bo.1,
Rishi Nagar, New Delhi,
North West, New Delhi,
Delhi India, 110034
Liquidation Commencement Date: December 23, 2023
Court: National Company Law Tribunal, New Delhi Bench
Liquidator: Advocate Nitin Narang
Shop No. 19, Vijay Nagar Single Story,
Near SBI & PNB Branches, New Delhi,
National Capital Territory of Delhi, 110009
E-mail: vliq.kolektor@gmail.com
Phone No: 9899358800
Last date for
submission of claims: January 23, 2024
KRISHNA RESIDENCY: Voluntary Liquidation Process Case Summary
-------------------------------------------------------------
Debtor: Krishna Residency Private Limited
Vedanta Road, Sarbahal,
Jhurusuguda, Orissa, 768201
Liquidation Commencement Date: December 29, 2023
Court: National Company Law Tribunal, Kolkata Bench
Liquidator: Mohan Ram Goenka
46, B.B. Ganguly Street, 406, F1-4th,
Kolkata 700012, West Bengal
E-mail:goenkamohan@gmail.com
Last date for
submission of claims: January 27, 2024
KRISHNA STEELS: Ind-Ra Affirms BB+ Bank Loan Rating
---------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Shree Krishna
Steels' (SKS) bank facilities as follows:
-- INR500 mil. Non-fund-based working capital facilities affirmed
with IND BB+/Stable/IND A4+ rating; and
-- INR130 mil. Non-fund-based working capital facilities assigned
with IND BB+/Stable/IND A4+ rating.
Note: The facility includes INR470 million fund-based facility as a
sub-limit.
Analytical approach : Ind-Ra continues to assess the company on a
standalone basis.
Key Rating Drivers
The affirmation reflects SKS's average and deteriorated EBITDA
margin of 2.68% in FY23 (FY22: 4.70%) on account of inventory
losses due to reduced steel prices. Consequently, the absolute
EBITDA declined to INR103.39 million in FY23 (FY22: INR160
million). The return on capital employed was 13% in FY23 (FY22:
24.02%). The company earned an EBITDA margin of 1.96% during
8MFY24. Over the medium term, Ind-Ra expects the EBITDA margin to
decline further on a yoy basis considering the selling pressure on
steel prices.
The ratings further reflect SKS's continued medium scale of
operations with a revenue of INR3,854 million in FY23 (FY22:
INR3,406 million). The revenue increased yoy in FY23 due to
increased orders from customers, led by an increased demand for
steel. SKS achieved a revenue of INR3,087.11 million in 8MFY24.
Over the medium term, Ind-Ra expects the revenue to improve
marginally yoy, due to an increase in the demand for iron and steel
products.
Liquidity Indicator – Stretched: SKS does not have any capital
market exposure and relies on banks and financial institutions to
meet its funding requirements. The average maximum utilization of
the consolidated fund- and non-fund-based facilities was 58% during
the 12 months ended November 2023. SKS's medium net working capital
cycle improved to 54 days in FY23 (FY22: 72 days) due to a decrease
in inventory days to 42 (55) and increased creditor days of six
(nil). The cash and cash equivalents stood at INR0.26 million at
FYE23 (FYE22: nil). The cash flow from operations turned positive
at INR163 million in FY23 (FY22: negative INR186 million) due to
favorable changes in the working capital. The free cash flow also
turned positive at INR162.54 million in FY23 (FY22: negative INR189
million). The company has no debt repayment obligations as there
are only unsecured loans outstanding and it has no plans to repay
such unsecured loans over the medium term.
The ratings are supported by SKS's comfortable credit metrics
despite the gross interest coverage (operating EBITDA/gross
interest expense) deteriorating to 5.44x in FY23 (FY22: 9.53x) and
the net financial leverage (adjusted net debt/operating EBITDA) to
2.14x (1.99x) due to a decrease in the EBITDA to INR103.39 million
(INR160 million). Over the medium term, Ind-Ra expects the credit
metrics to deteriorate due to an increase in the debt, coupled with
a likely fall in the absolute EBITDA.
The ratings continue to be supported by the promoters' experience
of over four decades in the metal industry.
Rating Sensitivities
Negative: A decline in the scale of operations, leading to
deterioration in the overall credit metrics, with the interest
coverage declining below 1.5x and further pressure on the liquidity
position, could lead to a negative rating action.
Positive: An increase in the scale of operations on a sustainable
basis, along with an improvement in the overall credit metrics,
with the interest coverage remaining above 2x, could lead to a
positive rating action.
Company Profile
Incorporated in 1980, SKS is a partnership firm located at Mumbai.
It is involved in the trading of iron and steel products such as
hot-rolled coils, galvanized plain coils and, color-coated coil,
and cold rolled close annealed coils. Previously, the company used
to import products and sell in the domestic market, but in FY21,
the company started procuring products from domestic players,
mainly from Arcelor Mittal Nippon Steel India. It sells the
products to customers on just-in-time basis. SKS caters to
customers located across India, but it mainly operates in
Maharashtra.
KUNDAN INDUSTRIES: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: M/s. Kundan Industries Limited
402, Lukhi Empire, 4th Floor,
SV Road Near Bali Ram Compound,
Yadav Nagar, Dahisar (East), Mumbai,
Maharashtra, India, 400068
Insolvency Commencement Date: January 2, 2024
Estimated date of closure of
insolvency resolution process: June 30, 2024 (180 Days)
Court: National Company Law Tribunal, Mumbai Bench
Insolvency
Professional: Sunil Kumar Agarwal
G-805, Akruti Orchid Park,
Andheri Kurla Road, Sakinaka,
Andheri (E), Mumbai, Maharashtra -400072
E-mail: ANIL91111@HOTMAIL.COM
3, Dilkap Center,
Andheri Kurla Road, Sakinaka,
Andheri (E), Mumbai, Maharashtra -400072
E-mail: CIRP.KUNDAN@GMAIL.COM
Last date for
submission of claims: January 19, 2024
LEXUS GRANITO: ICRA Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has kept the Debenture Programme and Long-Term and Short –
term rating for the Bank facilities of Lexus Granito (India)
Limited in the 'Issuer Not Cooperating' category. The rating are
denoted as "[ICRA]D;ISSUER NOT COOPERATING/[ICRA]D; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term– 15.00 [ICRA]D; ISSUER NOT
COOPERATING;
Non convertible Rating continues to remain
Debentures (NCD) under 'Issuer Not Cooperating'
category
Long-term– 36.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Short-term 6.20 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Rating continues to remain under
Others 'Issuer Not Cooperating'
Long-term– 26.67 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Short Term- (15.75) [ICRA]D; ISSUER NOT COOPERATING;
Interchangeable Rating Continues to remain under
'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Lexus Granito (India) Limited , ICRA has been trying to seek
information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
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 ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Lexus Granito (India) Private Limited (LGPL) was established as
private limited company in 2010 under leadership of Mr. Babulal
Detroja. The company's name was revised to "Lexus Granito (India)
Limited" following the issuance offresh certificate of
incorporation dated April 28, 2017, by Registrar of Companies,
Ahmedabad. LGL has the capacity to produce 24,00,000 boxes of wall
tiles per annum offered in dimension of 300X450 mm. in FY2016, the
company set up a new production line of vitrified tiles with the
aim to expand its product portfolio. At present, the production
capacity for vitrified tiles stands at 36,00,000 boxes per annum.
LODZ DENIM: Ind-Ra Affirms BB+ Bank Loan Rating, Outlook Negative
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has taken the following rating
actions on Lodz Denim Pvt Ltd (LDPL):
-- INR140 mil. Fund-based limits Outlook revised to Negative from
Positive; affirmed with IND BB+/Negative rating;
-- INR260 mil. Fund-based limits assigned with IND BB+/Negative
rating;
-- INR75 mil. Non-fund-based limits affirmed with IND A4+ rating;
-- INR695.19 mil. (reduced from INR913.6 mil.) Term loan due on
October 2028 Outlook revised to Negative from Positive;
affirmed with IND BB+/Negative rating; and
-- INR9.81 mil. Proposed non-fund-based limit assigned with IND
A4+ rating.
Analytical approach: Ind-Ra continues to take a standalone view of
LDPL while arriving at the ratings.
The Outlook revision reflects deterioration in LDPL's credit
metrics and liquidity in FY23 and Ind-Ra's expectation of a
below-par operating performance in FY24 due to the continued stress
in the textile sector stemming from the sluggish global demand.
Consequently, even though the company's profitability and credit
metrics might improve slightly yoy from FY23 levels in FY24, they
will remain below FY22 levels. Ind-Ra believes this can put
pressure on LDPL's liquidity, considering its high debt repayments
of INR173 million and INR211 million in FY24 and FY25,
respectively. The Outlook was earlier Positive due to the agency's
expectation of an improvement in LDPL's credit metrics in FY23 due
to scheduled debt repayments and the sustenance of the scale of
operations.
Key Rating Drivers
LDPL's moderate credit metrics deteriorated in FY23 due to a
decrease in the EBITDA to INR186.4 million (FY22: INR312.89
million). The gross interest coverage (operating EBITDA/gross
interest expense) was 1.81x in FY23 (FY22: 2.52x) and the net
leverage (adjusted net debt/operating EBITDAR) was 6.17x (3.89x).
Ind-Ra expects the credit metrics to improve in FY24 and FY25 on
the back of the scheduled debt repayment and the absence of any
major debt-funded capex plans but remain under stress due to the
continued weak demand in the textile sector.
Liquidity Indicator - Poor: The unencumbered cash and cash
equivalents stood at INR6.71 million at FYE23 (FYE22: INR2
million). LDPL has high debt repayment liabilities of INR173.3
million and INR211 million in FY24 and FY25, respectively. This,
along with the likely sluggish demand in the textile sector due to
a weak global export demand could put pressure on LDPL's liquidity.
Furthermore, the company does not have any capital market exposure
and relies on banks and financial institutions to meet its funding
requirements. The average maximum utilization of the fund-based
limits was 65.64% during the 12 months ended November 2023. The net
working capital cycle shortened to 72 days in FY23 (FY22: 59 days)
due to a decrease in the creditor days to 71 (100). The cash flow
from operations remained at a similar level at INR78.64 million in
FY23 (FY22: INR84.47 million). The company had availed a guaranteed
emergency credit line of INR101 million in FY23 to meet its working
capital requirements.
The ratings also factor in LDPL's continued medium scale of
operations despite its revenue declining 9.5% yoy to INR2,616.20
million in FY23 (FY22: INR2,890.92 million), due to both an
overall slowdown in demand in the textile sector especially in
exports and volatility in prices of cotton yarn, LDPL's main raw
material, caused by the poor cotton harvest in 2023. As a result,
capacity utilization declined to 57% in FY23 (FY22: 72%), with the
production of denim fabric in absolute terms decreasing to 13.3
million meters during the year (16.8 million meters). The company
booked a revenue of INR1,456 million in 1HFY24 and had an orderbook
of INR556 million at end-September 2023, to be executed by
end-January 2024. Ind-Ra expects the revenue growth to be muted
over the near-to-medium term, due to the continued weak textile
demand.
The ratings reflect LDPL's modest EBITDA margins, which declined to
7.13% in FY23 (FY22: 10.82%) due to an increase in the prices of
cotton yarn. The return on capital employed was 6.5% in FY23 (FY22:
14.1%). Ind-Ra expects the margins to improve slightly in FY24 with
moderation in the prices of cotton yarn.
The ratings are also constrained by LDPL's high customer
concentration, as a single customer accounted for 30.84% of the
revenue in FY23. The top five customers contributed to 69% of the
total sales in FY23.
The ratings are supported by the strong relationships that LDPL has
established with its customers in the domestic as well as export
markets since the commencement of operations in FY20, which has
enabled it to secure repeat orders from its top customers over the
past two years. The ratings also benefit from the promoters'
experience of close to a decade in the textile industry.
Rating Sensitivities
Negative: An inability to improve the liquidity or a substantial
decline in the scale of operations, leading to a decline in the
credit metrics with the net leverage remaining above 4.5x, all on a
sustained basis, will be negative for the ratings.
Positive: An improvement in the liquidity and credit metrics with
the net leverage improving below 4.5x while maintaining the scale
of operations, all on a sustained basis, will be positive for the
ratings.
Company Profile
LDPL, which was incorporated in December 2011, manufactures denim
fabric in Surat, Gujarat, with 75% domestic sales and 25% exports.
Bangladesh is its biggest export customer. The unit has an
installed capacity of 23 million meters.
M V AGRO: ICRA Keeps D Debt Ratings in Not Cooperating Category
---------------------------------------------------------------
ICRA has kept the Long-term and Short-term ratings for the bank
facilities of M V Agro Renewable Energy Pvt. Ltd. in the 'Issuer
Not Cooperating' category. The rating is denoted as
"[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 4.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term– 11.50 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Long-term/ 0.50 [ICRA]D/[ICRA]D; ISSUER NOT
Short Term COOPERATING; Rating Continues to
Unallocated remain under 'Issuer Not
Cooperating' Category
As part of its process and in accordance with its rating agreement
with M V Agro Renewable Energy Pvt. Ltd., ICRA has been trying to
seek information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
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 ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
M V Agro Renewable Energy Private Limited, incorporated in year
2014, manufactures bio fuel pellets from agro wastes, plant
residues, stems and plant biomass as the primary sources of raw
materials. The company has an installed capacity of 150 tons per
day and its manufacturing facility is located in Praskasham
District, Andhra Pradesh. The company started its operations in
2016.
MAHARAJA SATHYAM: ICRA Keeps B+ Debt Rating in Not Cooperating
--------------------------------------------------------------
ICRA has kept the Long-term rating for the bank facilities of
Maharaja Sathyam Industries Private Limited in the 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA]B+(Stable);
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 5.90 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Maharaja Sathyam Industries Private Limited, ICRA has been
trying to seek information from the entity so as to monitor its
performance. Further, ICRA has been sending repeated reminders to
the entity for payment of surveillance fee that became due. Despite
multiple 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 ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Maharaja Sathyam Industries Private Limited (MSIPL), incorporated
in 1981, is a small scale yarn manufacturer with a spindle capacity
of 22,944 spindles. The company predominantly produces
polyester-cotton blended yarn (65:35) and manufactures
polyester-viscose blended yarn and cotton yarn in minor quantities.
The company caters to traders in the domestic market mostly to
weavers around Erode, Ichalkaranji, Surat and Kolkata. MSIPL
largely produces cotton and blended yarn in the coarseto-medium
count range with average count being 40.
MAHAVIR RICE: Ind-Ra Assigns BB+ Rating, Outlook Stable
-------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated Mahavir Rice Mills
(MRM) bank facilities as follows:
-- INR1.40 bil. Fund-based limits assigned with IND BB+/Stable /
IND A4+ rating.
Analytical Approach: Ind-Ra has taken a standalone view of MRM for
arriving at the rating.
Key Rating Drivers
The rating reflects MRM's medium scale of operations with a revenue
of INR5,829.55 million in FY23 (FY22: INR4,485.88 million). The
revenue increased yoy in FY23 due to a rise in the demand and price
of basmati rice. The company caters to both the domestic as well as
the export market. In FY23, the company booked a revenue of around
INR4,870 million (83% of the net sales) from the export market and
INR959 million from the domestic market. Over the long term, the
company targets to maintain a product mix with 80%-85% of export
and 15%-30% of domestic market capture. In FY23, the capacity
utilization stood at 95%. In 9MFY24, the company booked a revenue
of INR4,886 million. As India is a leading exporter of basmati rice
and MRM is engaged in the processing and export of the same, Ind-Ra
expects the revenue to improve further in FY24 and FY25, aided by
an increase in the demand.
MRM has a single product portfolio i.e. basmati rice which is sold
in the domestic as well as in the export market. For the domestic
market, the company sells rice under different brand names such as
Indian Pride, Shree Satbhog, Mashoor and Signature Bridge; for
exports, the company sells the rice under Private Labelling.
The rating factors in MRM's modest EBITDA margin in the range of
2%-3.5% since FY20 (FY23: 3.30%; FY22: 2.80%; FY21: 2.99%),
resulting from low-value addition, high competition and a
volatility in the raw material (paddy) prices, packaging material
prices as well as shipping cost. The cost of raw material accounts
for 82%-88% of the company's cost of procuring paddy. MRM's
operating profitability remains susceptible to a volatility in raw
material prices, which essentially depends on the total
agricultural output. Since the company processes basmati rice, the
fluctuations in raw material prices are largely factored into the
final output prices. The government regulations pertaining to
procurement policies also impact the raw material availability. The
return on capital employed stood at 10.9% in FY23 (FY22: 8.0%). In
the rice industry, the margins remain at the similar range as the
industry is marked by volumetric sales and on account of no
significant value addition in the finished product. Ind-Ra expects
the margin will remain at the similar level over the near term on
account of the unchanged nature of MRM's business.
Liquidity Indicator - Stretched: MRM's average maximum utilization
of the fund-based limits was 76.79% during the 12 months ended
December 2023. The cash flow from operations remained negative at
INR92.37 million in FY23 (FY22: negative INR191.34 million), due to
an increase in the working capital requirement on account of an
increase in the scale of operations. The net working capital cycle
improved yoy but remained elongated at 121 days in FY23 (FY22: 139
days), due to a decrease in the inventory holding period to 109
days (123 days) and debtor days to 59 (83). The inventory holding
period remains elongated on account of the seasonality of the
product. The peak season for the procurement of paddy is from
October to December and during this period, the company procures
70%-75% of paddy, which is stocked for the year, to meet the
demand. The remaining paddy procurement is done in the non-peak
season depending upon the demand. The company does not have any
long-term debt repayment obligation. MRM does not have any capital
market exposure and relies only on banks and financial institutions
to meet its funding requirements. MRM's unencumbered cash balance
stood at INR0.27 million in FY23 (FY22: INR10.65 million). Ind-Ra
expects the cash flow from operations to improve over the near
term, due to the likely improvement in the operating EBITDA.
The rating also reflects MRM's continued modest credit metrics. In
FY23, the interest coverage (operating EBITDAR/gross interest
expense + rents) decreased to 1.78x (FY22: 2.03x) due to an
increase in the interest cost as the government reduced the
interest subvention to 3% during the year from 5% earlier. The net
leverage (adjusted net debt/operating EBITDAR) improved to 7.59x in
FY23 (FY22: 10.85x) due to an increase in the EBITDA to INR192.17
million (INR125.68 million). However, the credit metrics remain
modest on account of the firm's high average maximum utilization of
76.79% of the fund-based limits over the 12 months ended December
2023 to meet the working capital requirement as the company deals
with a seasonal agro-commodity. Ind-Ra expects the credit metrics
to remain at similar levels over the medium term, due to MRM's
nature of operations amid the absence of any major debt-funded
capex.
The rating also factors in the seasonality nature of business,
exposure to commodity risk and the competitive industry MRM
operates in. The rice industry in India is characterized by intense
competition, with the presence of a large number of both organized
and unorganized players attributable to low-entry barriers such as
low capital and low technical requirements of the business and a
liberal policy regime. As a result, the profitability in the rice
processing tends to be modest. However, the company's strong
connectivity to end markets helps it mitigate the risk booking
comfortable cash profits. MRM's profitability remains vulnerable to
a sudden and sharp volatility in paddy prices which are highly
dependent on monsoon, demand, currency fluctuation acreage under
cultivation and government regulations. The company mitigates the
currency fluctuation risk by maintaining forward contract limits.
The rating is supported by the promoter's extensive experience in
the industry, leading to established relationships with customers
and suppliers.
Rating Sensitivities
Negative: A decline in the scale of operations, resulting in
deterioration in the credit metrics with the interest coverage
falling below 1.75x and/or a substantial decline in the liquidity
position of the company, all on a sustained basis, could lead to
negative rating action.
Positive: A substantial increase in the scale of operations and
profitability, along with an improvement in the liquidity position
and credit metrics with the interest coverage increasing above
2.25x will be positive for the ratings.
Company Profile
MRM has started its operations in 1985 as a partnership firm and is
engaged in the processing of basmati rice. It has its registered
office in Karnal, Haryana with an annual installed capacity of
60,000MT.
MANOHAR INFRASTRUCTURE: CARE Lowers Rating on INR90cr Loan to B
---------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Manohar Infrastructure and Constructions Private Limited (MICPL),
as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 90.00 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B+; Stable
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated December 9,
2022, placed the rating(s) of MICPL under the 'issuer
non-cooperating' category as MICPL 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.
MICPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls
and a letter/email dated October 25, 2023, November 4, 2023,
November 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).
The rating assigned to the bank facilities of MICPL has been
revised on account of non-availability of requisite information.
Incorporated in 2005, Manohar Infrastructure & Constructions
Private Limited (MICPL) is engaged in the development of
residential and commercial real estate projects, situated at Mohali
(Punjab) and Mullanpur (New Chandigarh), near Chandigarh. MICPL is
currently being managed by Mr. Tarninder Singh (Managing Director)
and Mr. Narinderbir Singh. The company is a part of the Manohar
Singh Group was founded by Late Mr. Manohar Singh in the year 1955
by starting Manohar Singh & Company to carry out the business of
real estate in Chandigarh and nearby areas. The group is also into
property dealing and underwriting of properties since inception.
Currently, MICPL is developing various residential and commercial
projects in Mohali and Mullanpur (New Chandigarh).
MATA RANI: Ind-Ra Keeps D Rating in Non-Cooperating
---------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Mata Rani
Trust's instrument(s) rating in the non-cooperating category. The
issuer did not participate in the surveillance exercise, despite
continuous requests and follow-ups by the agency through emails and
phone calls. Therefore, investors and other users are advised to
take appropriate caution while using the rating. The rating will
continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.
The detailed rating action is:
-- INR291 mil. Term loan maintained in non-cooperating category
with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
Established in 2009, Mata Rani Trust is a non-government, social
service organization, formed as a trust for the primary purpose of
imparting education to the new generation. The trust has a K-8
school and a polytechnic institute.
MAVERICK HOLDINGS: Ind-Ra Cuts Bank Loan Rating to BB
-----------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Maverick
Holdings & Investments Private Limited's (MHIPL) bank facility
rating to 'IND D (ISSUER NOT COOPERATING)' from 'IND BB (ISSUER NOT
COOPERATING)' as follows:
-- INR2.120 bil. Term loan* (long-term) due on March 2031
downgraded with IND D (ISSUER NOT COOPERATING) rating;
-- INR170 mil. Fund-based working capital limit (long-term/
short-term) downgraded with IND D (ISSUER NOT COOPERATING)
rating; and
-- INR590 mil. Non-Fund-based working capital limit (short-term)
downgraded with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
*Lease rental discounting and funded interest term loan
ANALYTICAL APPROACH: Ind-Ra continues to take a consolidated view
of MHIPL and its group company, Euroamer Garuda Resorts (India)
Private Limited (EGRIPL), for the rating purpose, as they are
co-borrowers for the lease rental discounting.
Key Rating Drivers
The downgrade reflects MHIPL's default on term loans, details of
which are not available. Ind-Ra has not been able to ascertain the
reason for the delay, as the issuer has been non-cooperative. The
company has been classified as special mention account with a
bank.
Rating Sensitivities
Positive: Timely debt servicing for at least three consecutive
months will be positive for the ratings.
Company Profile
Incorporated in 1991 and promoted by B.N. Garudachar and B.G. Uday,
MHIPL operates three shopping malls, namely, Garuda Mall, Garuda
Swagath Mall, and Garuda Yelahanka Mall, all located in Bangalore.
The company is also a civil contractor for redevelopment projects
for the government of Karnataka. EGRIPL is involved in maintaining
the abovementioned malls. Its revenue is derived through common
area maintenance charges, parking charges, electricity charges,
advertisement fees and other miscellaneous charges from the three
malls. EGRIPL also collects lease rent from Inox Leisure Ltd, which
is situated in Garuda Mall.
METTU CHINNA: CARE Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Mettu
Chinna Mallareddy Godowns (MCMG) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.27 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 0.23 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 January 4,
2023, placed the rating(s) of MCMG under the 'issuer
non-cooperating' category as MCMG 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. MCMG
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated November 20, 2023, November 30, 2023, December
10, 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).
Andhra Pradesh based, Mettu Chinna Mallareddy Godowns (MCMG) was
established as a partnership firm in the year 2011 and promoted by
Mr. Ch. Venkata Krishna Rao and Mrs. Ch. Lakshmi. The firm is
engaged in providing ware house for lease rental purpose to Andhra
Pradesh State Warehousing Corporation. The property is built on
total land area of 18 acres comprising of nine godowns having
storage capacity for food crops like paddy around 45000 MT and each
godown having storage capacity of 5000MT.
MITTAL SOYA: Ind-Ra Corrects December 18, 2023 Rating Release
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) rectifies Mittal Soya Protein
Private Limited's (MSPPL) rating published on December 18, 2023 to
clarify the rationale behind deviation in the assignment of
short-term debt rating.
The amended version is as follows:
India Ratings and Research (Ind-Ra) has rated Mittal Soya Protein
Private Limited's (MSPPL) bank facilities as follows:
-- INR90.00 mil. Term loan due on December 31, 2028 assigned with
IND BB-/Stable rating;
-- INR390.00 mil. Cash credit assigned with IND BB-/Stable/IND A4
rating;
-- INR250.00 mil. Fund-based working capital limit assigned with
IND BB-/Stable/IND A4 rating; and
-- INR18.00 mil. Non-fund-based limit assigned with IND A4
rating.
ANALYTICAL APPROACH: Ind-Ra has assessed the company on a
standalone basis while assigning the ratings. Generally, if a
company is rated 'IND BB-', Ind-Ra typically assigns a short-term
rating of 'IND A4+', in line with its Short-Term Ratings Criteria
for Non-Financial Corporates. The agency, however, has assigned a
short-term rating of 'IND A4', considering the company's weak
credit profile and current ratio of below 1.0x in FY23.
Key Rating Drivers
The ratings reflect MSPPL's medium scale of operations as indicated
by revenue of INR4,504.05 million in FY23 (FY22: INR948.21 million)
due to an increase in the capacity utilization to about 38% (9%).
Despite the surge in revenue, the company reported operating losses
of INR11.07 million in FY23 (FY22: INR18.61 million), due to an
increase in direct costs, and volatility in price of edible oil and
soya seeds. However, MSSPL operated at above 50% capacity in 1HFY24
and achieved revenue of INR2,250.83 million with an EBITDA margin
of 2.7%. Furthermore, MSPPL is installing a boiler and an oil
refinery for further processing of crude oil, which is scheduled to
be completed by July 2024. Ind-Ra expects the revenue to improve
and MSPPL to turn profitable in FY24 on account of reducing direct
cost due to improving capacity utilization and installation of the
boiler during FY24.
Liquidity Indicator - Stretched: MSPPL does not have any capital
market exposure and relies on banks and financial institutions to
meet its funding requirements. The average maximum utilization of
its fund-based working capital limits was above 95% during the 12
months ended October 2023. The cash flow from operations improved
to INR56.87 million in FY23 (FY22: INR8.03 million) on account of
an improvement in the working capital cycle to 20 days in FY23
(FY22: 105 days). Consequently, the free cash flow turned positive
to INR3.87 million in FY23 (FY22: negative INR60.95 million),
partially offset by capex of INR53 million (INR68.98 million).
MSPPL is also implementing capex to install a boiler and oil
refinery, estimated to cost around INR140 million.
The capex would be funded from a bank loan of INR90 million and the
remaining from promoter's contribution. The company had an
unencumbered cash balance of around INR60.29 million at FYE23
(FYE22: INR17.53 million). The working capital cycle reduced
significantly to 20 days in FY23 (FY22: 105 days) on account of a
reduction in the inventory holding period to 24 days (140 days),
resulting from increased execution of orders. Ind-Ra expects the
working capital cycle to remain at similar levels in FY24 on
account of a shorter inventory holding period and receivable period
(FY23: 11 days, FY22: 22 days). MSPPL has debt repayment
obligations of INR3 million and INR12 million in FY24 and FY25,
respectively.
The ratings are also constrained by volatility in edible oil prices
due to irregular supply of palm oil to India, which exposes MSPPL
to fluctuations in margins.
However, the ratings are supported the promoters experience of 20
years in the industry, leading to established relationships with
customers and suppliers.
Rating Sensitivities
Negative: A decline in the scale of operations leading to
deterioration in the credit metrics and/or any deterioration in the
liquidity position, all on a sustained basis, would lead to a
negative rating action.
Positive: An improvement in the scale of operations leading to an
improvement in the credit metrics with the gross interest coverage
increasing above 1.5x, along with an improvement in the liquidity
position, all on a sustained basis, will be positive for the
ratings.
Company Profile
Established in December 2020, Madhya Pradesh-based MSPPL processes
soya seeds to produce crude soya oil and de-oiled cake. The company
has a daily processing capacity of 700MT. Shrey Mittal is the
promoter.
NAGRAJ ALLOYS: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Nagraj Alloys Private Limited
Flat no. 004, Maa Bambleshwari Apartment,
Near Patidar Bhawan, Quetta Colony,
Nagpur - 440008
Insolvency Commencement Date: January 2, 2024
Estimated date of closure of
insolvency resolution process: June 30, 2024
Court: National Company Law Tribunal, Mumbai Bench
Insolvency
Professional: Prasad Kamalakar Dharap
47 "Prasad", New Ramdaspeth,
Nagpur, Maharashtra - 440 010
E-mail: dharap65@rediffmail.com
E-mail: cirp.napl@outlook.com
Last date for
submission of claims: January 16, 2024
NATIONAL STEEL: Ind-Ra Keeps D Rating in Non-Cooperating
--------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained National Steel
and Agro Industries Limited's instrument(s) rating in the
non-cooperating category. The issuer did not participate in the
surveillance exercise, despite continuous requests and follow-ups
by the agency through emails and phone calls. Therefore, investors
and other users are advised to take appropriate caution while using
the rating. The rating will continue to appear as 'IND D (ISSUER
NOT COOPERATING)' on the agency's website.
The detailed rating actions are:
-- INR2.006 bil. Fund Based Working Capital Limit maintained in
non-cooperating category with IND D (ISSUER NOT COOPERATING)
rating;
-- INR11.995 bil. Non-Fund Based Working Capital Limit maintained
in non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating; and
-- INR89.4 mil. Term loan due on April 1, 2019 maintained in non-
cooperating category with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
National Steel and Agro Industries manufactures cold-rolled sheet
(capacity: 300,000 metric tons per annum (mtpa)), galvanized plain
and corrugated sheets (330,000mtpa) and color-coated sheets and
coils (170,000mtpa) at its plant in the Dhar district of Madhya
Pradesh. Moreover, it trades agro and steel products, and has a
captive 6MW gas-based power plant.
ORMEC ENGINEERING: Voluntary Liquidation Process Case Summary
-------------------------------------------------------------
Debtor: Ormec Engineering LTD
7, Mango Lane, Room No. 105, Kolkata,
West Bengal, India, 700001
Liquidation Commencement Date: December 20, 2023
Court: National Company Law Tribunal, Kolkata Bench
Liquidator: CS Mandar Wagh
Flat no. C-1302, Grandstand Trinity,
Service Road from Vedbhavan to Warje,
Pune Bangalore Highway,
Near Chandani Chowk, Pune 411038
C/o. Anand Chaitanya Corporate
Legal Advisors LLP,
505, 4th Floor, Venture,
Above Mc'Donald's Paud Road,
Bhusari Colony, Pune 411 038
Email: mandar.wagh@anandchaitanya.com
Mobile No: 9822844488
Last date for
submission of claims: January 19, 2024
PANCHWATI PRAYOGSHALA: ICRA Keeps B+ Ratings in Not Cooperating
---------------------------------------------------------------
ICRA has kept the Long-Term ratings of Panchwati Prayogshala
Private Limited in the 'Issuer Not Cooperating' category. The
ratings are denoted as "[ICRA]B+ (Stable); ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 1.50 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term- 7.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 1.00 [ICRA]B+ (Stable) ISSUER NOT
Non Fund Based COOPERATING; Rating continues
Others to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Panchwati Prayogshala Private Limited, ICRA has been trying to
seek information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
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 ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Panchwati Prayogshala Private Limited (PPPL) is a manufacturer of
Ayurvedic and herbal products, such as digestive tablets and
powders, Chyawanprash, syrups, hair oil and other products. The
company is managed by Mr. Pankaj Goel, who has more than two
decades of experience in the Ayurvedic and herbal products
business. The business is comanaged by Mr. Goel's partner and
brother-in-law, Mr. Neeraj Agarwal. The company has two plants at
Meerut (Uttar Pradesh) and Roorkee (Uttarakhand). While the Meerut
plant is solely engaged in the production of digestive tablets, the
Roorkee plant manufactures various products, including digestive
tablets. The Roorkee plant was established in 2008 and has benefits
of income tax exemption till FY2018. The company's promoter, Mr.
Goel, also runs an educational trust, which provides higher
education through its four colleges.
PARAMOUNT INTERNATIONAL: ICRA Keeps D Ratings in Not Cooperating
----------------------------------------------------------------
ICRA has kept the Long-term rating for the bank facilities of
Paramount International in the 'Issuer Not Cooperating' category.
The rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 10.80 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Paramount International, ICRA has been trying to seek
information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
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 ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Paramount International (PI) was incorporated on 2008. It is
involved in manufacturing of handicrafts like Candle Stands, Lamps,
Christmas Ornaments etc. made of brass, colored glass, iron,
aluminum etc. The raw materials used at present are Timber, Iron
and Glass. The firm's factory is in Moradabad, U.P. also known as
"Brass City or Peetal Nagri". The firm has no retails outlets and
all the sales are exported mainly to the USA and some European
countries.
PARISHUDH MACHINES: CARE Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Parishudh
Machines Private Limited (PMPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 2.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated December 13,
2022, placed the rating(s) of PMPL under the 'issuer
non-cooperating' category as PMPL 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. PMPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated October 29, 2023, November 8, 2023, November 18,
2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Uttar Pradesh-based, PMPL was incorporated on February 6, 1987, by
Mr. V.S. Goindi and Mr. G.S. Goindi. It started its commercial
operations in 1988. PMPL is engaged in manufacturing and servicing
of Computerized-Numerical-Control (CNC) turning and grinding
machines and automatic lathes with the plant being located at
Ghaziabad (UP) and Sitarganj (Uttaranchal). The manufacturing
facility of PMPL is well equipped with modern amenities and is ISO
9001:2008 certified. This apart, PMPL also manufactures various
engineering components. PMPL markets its products under the brand
name 'Parishudh'.
PRASHUL REAL: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Prashul Real Estate Private Limited
Office No. 612, B2B, Centre Cabin B, 6th Floor,
Bhd. Malad Industrial Estate, Kachpada,
Malad West Mumbai - 400064
Insolvency Commencement Date: January 5, 2024
Estimated date of closure of
insolvency resolution process: July 3, 2024
Court: National Company Law Tribunal, Mumbai Bench
Insolvency
Professional: Jayesh Natvarlal Sanghrajka
405 - 407, Hind Rajasthan Building,
Dadar East, Mumbai - 400014
E-mail: Jayesh.sanghrajka@incorpadvisory.in
E-mail: cirp.prashul@gmail.com
Last date for
submission of claims: January 20, 2024
PSV PRECAST: CARE Keeps B- Debt Rating in Not Cooperating Category
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of PSV Precast
Private Limited (PPPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 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 December 23,
2022, placed the rating(s) of PPPL under the 'issuer
non-cooperating' category as PPPL 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. PPPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated November 8, 2023, November 18, 2023, November
28, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
PSV Precast Private Limited (PPPL) was incorporated in the year
2017 for the object of carrying out business of manufacturing,
supply and erection of precast building elements i.e., columns,
beams, hollow core slabs, walls etc., which is used in civil
construction. PPPL was promoted by by Mr. Pulli. Harikrishna
Srinivas Reddy (Managing Director) and Ms. P. Sujata (Director).
The manufacturing unit is located at Yawapur Village, Sadasivpet
Mandal, Sangareddy district, Telangana. PPPL has its owned land
with an area of 5.00 acres with manufacturing plant area size of
45000 sq. ft. The company has all the utility facilities, where the
plant is located, i.e. water, electricity, manpower, transportation
among others. The project was started in September 2017 and started
commercial operations in April 2018. The total proposed cost of
project is INR9.87 crore which is proposed to be funded through
bank term loan of INR7.40 crore and equity share capital of INR2.46
crore. The project was completed in April 2018 and simultaneously
started its commercial operations. Also, the company has got orders
from Inderjit Mehta Constructions Pvt. Ltd, Preca Solutions India
Private Limited.
RCI INDUSTRIES: Ind-Ra Keeps D Rating in Non-Cooperating
--------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained RCI Industries &
Technologies Limited's instrument(s) rating in the non-cooperating
category. The issuer did not participate in the surveillance
exercise, despite continuous requests and follow-ups by the agency
through emails and phone calls. Therefore, investors and other
users are advised to take appropriate caution while using the
rating. The rating will continue to appear as 'IND D (ISSUER NOT
COOPERATING)' on the agency's website.
The detailed rating actions are:
-- INR1.010 bil. Fund Based Working Capital Limit maintained in
non-cooperating category with IND D (ISSUER NOT COOPERATING)
rating;
-- INR1.090 bil. Non-Fund Based Working Capital Limit maintained
in non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating; and
-- INR500 mil. Term loan maintained in non-cooperating category
with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
Incorporated in 1992, RCI is listed on the BSE Ltd. The company
manufactures copper wires (24,000 million tons (mt) capacity),
copper/brass strips (15,000mt capacity) and Tin solder strips/bars
(1,200mt capacity). Its items include annealed copper wire, bunched
copper wires ropes and copper ingots.
RESOLUTION ENTERPRISES: ICRA Keeps B+ Ratings in Not Cooperating
----------------------------------------------------------------
ICRA has kept the Long-Term ratings of Resolution Enterprises in
the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 8.50 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 1.50 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Resolution Enterprises, ICRA has been trying to seek
information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
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 ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Incorporated in August 2014 as a partnership firm, Resolution
Enterprises (RE) has been set up by Mr. Shrirup Roy Choudhary and
Mrs. Sharmishta Roy Choudhary, as a distributor and retailer in
West Bengal for various mobile handset companies.
SAPTARISHI HOTELS: CARE Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Saptarishi
Hotels Private Limited (SHPL) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 220.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Long Term/ 20.00 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated November 16,
2022, placed the rating(s) of SHPL under the 'issuer
non-cooperating' category as SHPL had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. SHPL
continues to be noncooperative 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).
Saptarishi Hotels Private Limited (SHPL) was incorporated on
October 7, 2010. The company is a special purpose vehicle (SPV)
incorporated for the development of a 4-star serviced apartments
and convention hotel property in the name of 'Double Tree by
Hilton' at Gachibowli, Hyderabad.
SARRALLE EQUIPMENT: Ind-Ra Assigns BB+ Rating, Outlook Stable
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Sarralle Equipment
India Pvt Ltd.'s (SEIPL) bank facilities 'IND BB+'. The Outlook is
Stable.
The instrument-wise rating actions are:
-- INR250 mil. Cash credit assigned with IND BB+/Stable rating;
-- INR350 mil. Non-fund-based working capital limit assigned with
IND BB+/Stable/IND A4+ rating; and
-- INR150 mil. Fund-based/non-fund-based working capital limit
assigned with IND BB+/Stable/IND A4+ rating.
ANALYTICAL APPROACH: Ind-Ra has taken a standalone view of SEIPL
while assigning the ratings.
Key Rating Drivers
The ratings reflect SEIPL's small scale of operations as indicated
by revenue of INR112.93 million in FY23 (FY22: INR458.66 million).
The increase in revenue in FY23 was on the back of execution of a
higher number of orders. During 9MFY24, the company booked revenue
of INR980 million. Ind-Ra expects the revenue to increase further
in FY24 due to its strong unexecuted order book of INR3,600 million
as of December 31, 2023, to be executed in the next 24 months, as
well as higher demand from the steel industry.
The ratings also factor in the company's modest EBITDA margins of
7.17% in FY23 (FY22: 6.52%) with a return on capital employed of
16.50% (5.70%). The increase in EBITDA margins was on account of
better cost control.
However, the ratings are supported by SEIPL's comfortable credit
metrics. The interest coverage (operating EBITDAR/gross interest
expense + rents) of 32.49x in FY23 (FY22: 7.02x) owing to lower
external debt. The company maintained a net cash position in
FY22-FY23. However, the agency expects the credit metrics to
moderate following the sanction of INR600 million of working
capital facilities during FY24, which is likely to lead to a rise
in interest costs. Nevertheless, Ind-Ra expects the credit metrics
to remain comfortable over the medium term, due to likely healthy
EBITDA levels.
Liquidity Indicator - Adequate: The company's average maximum use
of the fund-based limits was 28% for the 12 months ended November
2023. The cash and cash equivalents stood at INR45.61 million at
FYE23 (FYE22: INR110.13 million). The cash flow from operations
increased to INR129.24 million (FY22: INR100.91 million) due to an
increase in the EBITDA. Consequently, the free cash flow improved
to INR110.01 million in FY23 (FY22: INR78.82million). However,
Ind-Ra expects the cash flow from operations and free cash flow to
decline in the near-to-medium term due to higher working capital
requirement and capex. The net working capital cycle turned
negative to 12 days in FY23 (FY22: 59 days) due to a long credit
period extended by the suppliers as it had insufficient sanctioned
working capital to support the operations. However, Ind-Ra expects
the working capital cycle to shorten in the long term with payment
to suppliers through utilization of sanctioned bank facilities. The
company does not have any term debt.
The ratings are also supported by SEIPL being a 100% subsidiary of
part of Spain-based Sarralle Steel Melting Plant S.L., which has
more than 50 years of experience in the design and supply of
metallurgical plant equipment, including process technology for
steelmaking, secondary metallurgy and continuous casting machines
in the steel industry. Being a part of the larger entity ensures
repeat orders from reputed clientele in the domestic and well as
international market. Further, the company has established strong
relationships with reputed clients namely Jindal Steel and Power
Ltd, JSW India Ltd ('IND AA'/Stable), Rungta Mines Limited (debt
rated at 'IND AA-'/Stable), Sunflag Iron & steel Company Limited,
Evonith Value Steel Limited (debt rated at 'IND A1'), Bhushan Power
& Steel Ltd., which ensure timely payments.
Rating Sensitivities
Positive: A substantial improvement in the scale of operations and
profitability while maintaining the liquidity position and credit
metrics, could lead to a positive rating action.
Negative: Inability to improve its scale of operations and/or
deterioration in the liquidity position and credit metrics, all on
a sustained basis, could lead to the negative rating action.
Company Profile
SEIPL undertakes turnkey projects – engineering, manufacturing,
procurement, supply, commissioning, establishing performance
parameters and handing over plants, furnaces, and equipment – for
plants and equipment in the steel industry. SEPL's manufacturing
facility is located at Uluberia, West Bengal. It caters to domestic
as well as international markets.
SAT INDIA: Insolvency Resolution Process Case Summary
-----------------------------------------------------
Debtor: Sat India Limited
33A JL Nehru Rd 12th Floor No.13
Kolkata, West Bengal India, 700071
Insolvency Commencement Date: January 5, 2024
Estimated date of closure of
insolvency resolution process: July 3, 2024
Court: National Company Law Tribunal, Kolkata Bench
Insolvency
Professional: Anurag Nirbhaya
204, Sagar Plaza, Plot No. 19, District Centre,
Laxmi Nagar, New Delhi
National Capital Territory of Delhi 110092
Email: anurag@canirbhaya.com
Email: cirp.satindia@gmail.com
Last date for
submission of claims: January 19, 2024
SECUREKLOUD TECH: CARE Reaffirms C Rating on INR17.12cr Loan
------------------------------------------------------------
CARE Ratings has reaffirmed ratings on certain bank facilities of
SecureKloud Technologies Limited (SecureKloud), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 17.12 CARE C; Stable Reaffirmed
Rationale and key rating drivers
The ratings assigned to the bank facilities of SecureKloud takes
into account the modest operational performance as reflected by
continuous operating losses, modest scale of operations with
geographical concentration especially in the light of slow growth
in the key market and competitive nature of industry. The ratings
continue to be constrained by weak financial risk profile marked by
negative tangible net-worth and tight liquidity profile. The rating
takes into account impact of the order by the regulator SEBI on
governance issues and irregularities in past financials against the
company.
The rating, however, derives strength from the domain and industry
expertise of the company and its tie-ups with public cloud
enterprises.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Improvement in profitability with PBILDT margins above 15%
* Reduction in client and geographical concentration risk
* Improvement in liquidity position
* Resolution of governance related issues and strengthening of the
corporate governance architecture in the company and management
Negative factors
* Any further tightening of liquidity position
* Further directions from regulatory authorities impacting the
operations of the company
Outlook: Stable
CARE Ratings expects that the company would continue to benefit
from its domain and industry expertise.
Key weaknesses
* Continued operating losses: The company has been incurring losses
at operational level due to increased R&D spending over the past 2
years for the platform business. The company has spent about INR91
crore over FY21 and FY22 which was booked as expenses in P&L
account. The revenue from this R&D activity is not as envisaged due
to the platform model's acceptance in the healthcare segment being
low leading to lower revenue and continued operating losses in
H1FY24. However, with the rationalization of R&D and reduction in
discretionary spends, the operational losses have declined in
H1FY24.
Further, majority of the company's employees are based out of the
US due to which the employee costs have been high. The company has
cut down on employees in FY24. However, with the scale continuing
to being modest, the employee utilization continues to remain low
and the high employee costs continue to strain the profitability of
the company.
* Modest financial risk profile marked by negative tangible
networth: The company's tangible net-worth has also seen an erosion
after the write-off INR624.95 crore of capitalised internally
developed software in FY20. Due to continuous operating losses, the
tangible net-worth has continued to remain negative in FY23 and
H1FY24. The company has a total debt of INR110.45 crore as on March
31, 2023, out of which INR31.37 crore is in the form of unsecured
loans from the promoter. The company, through its step-down
subsidiary, has raised fund by issue of convertible promissory
notes for a value of USD5.2 mn and the company has already received
the first tranche of USD2 mn in December 2023. This is expected to
be utilised towards repayment of debt in the subsidiary book and
working capital requirements. In case of repayment of these notes
through cash instead of through share issue, the financial position
would be further strained.
* Geographical concentration: The company caters to USA market
primarily. 98% of the consolidated revenue is from the USA for the
past two years. This high dependence on USA for revenue exposes the
company to geographical concentration risk especially with higher
employee costs. A slowdown in the US economy would impact the IT
spending of the clients in these geographies thereby impacting the
company. However, presence in the healthcare segment would mitigate
this to a certain extent. The company has been taking efforts to
offshore certain business and diversify the geographical presence
with company starting operations in Singapore as well.
* Presence in highly competitive industry: The company has a
relatively moderate scale of operations in a highly competitive
industry which would restrict the company's bargaining power with
high value clients. It faces competition from IT giants and other
small-scale players. This leads to inherent industry risks like
inability to undertake large sized projects, employee attrition and
wage inflation. The company is also exposed to risks of regulatory
framework and immigration policy changes in USA. All the above
would put pressure on the margins of the company.
* Impact of SEBI Order and governance issues: Pursuant to receipt
of certain complaints alleging inter-alia financial
mis-reporting/irregularities by promoters and management of the
Company and the resignation of the Company's statutory auditor,
viz. Deloitte Haskins and Sells citing various corporate governance
issues including fraud relating to irregularities and
inconsistencies in financial statements and books of accounts of
the Company, SEBI had initiated an investigation and Grant Thornton
was appointed as forensic auditor. In this regard, SEBI has issued
a final order which gave certain directives and penalties to the
company and its officials - Mr. Suresh Venkatachari, Mr. R S Ramani
and Mr. Gurumurthy Jayaraman. Following this order, Mr. Suresh
Venkatachari, promoter, had stepped down from the position of CEO.
The company had sought appeal against this order in SAT, however,
no order has been passed yet. Mr Suresh continues to be promoter
and main shareholder in the company.
Key strengths
* Domain and Industry expertise coupled with tie-ups with public
cloud enterprises: SecureKloud is focussed on cloud transformation
and data pipeline management services. Since its inception, the
company has developed in-house patented softwares such as CloudEz
platform and has continued to develop technology platforms like
DataEz, readbl.ai, blockedge.io and CloudAuth etc. Furthermore, the
company has also tied up as a service partner with public cloud
system providers such as AWS, Azure, Google Cloud Services, IBM
Smart Cloud and VMWare. Being in a highly regulated vertical
like healthcare, SecureKloud also has expertise and has been
certified in regulatory compliances such as HIPAA (Health Insurance
Portability and Accountability Act), HITRUST and GxP.
Liquidity: Poor
The liquidity of the company remained stretched with high working
capital utilisation at about 94% for the twelve months ended
November 2023. At consolidated level, the company's cash accruals
remain negative and the free cash and balances also remain low at
about INR1.99 crore as on September 30, 2023. At a standalone
level, the company has a positive accrual of about INR4.70 crore in
H1FY24 as against a full year repayment of about INR1 crore.
The company's long term debt obligation as on March 31, 2023, stood
at INR38.83 crore out of which INR31.37 crore is unsecured loan
from its erstrwhile promoter, Mr. R S Ramani. The company had
reported delays in payments with regards to the loan from Mr. R S
Ramani from September 2022, however it has been regular in
servicing the debt obligations to bank.
SecureKloud Technologies Limited (SecureKloud) was originally
promoted as 8K Miles Software Services Limited by Mr Venkatachari
Suresh, Mr R. S. Ramani and Mr M. V Bhaskar in the year 2008. The
company provides software services (strategic advisory,
implementation, and development services), managed services and
support (post implementation support and cloud hosting services)
and platform services (solutions delivery model). The company has
technological partnerships with Amazon Web Services, Microsoft
Azure, IBM, Google Cloud Platform and CA Technologies. They are one
of the preferred managed service partners for Amazon Web Services.
SHIV SHANKAR: CARE Keeps D Debt Rating in Not Cooperating Category
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shiv
Shankar Rice Mills (SSRM) continueS to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.60 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 December 29,
2022, placed the rating(s) of SSRM under the 'issuer
non-cooperating' category as SSRM 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. SSRM
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated November 14, 2023, November 24, 2023, December
4, 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).
Shiv Shankar Rice Mills (SSRM) was established in April 2003 as a
partnership firm and is currently being managed by Mr. Anil Kumar
and Mrs. Savita Gupta as its partners, sharing profit and losses in
the ratio of 7:3. The firm is engaged in processing of paddy at its
manufacturing facility located in Karnal, Haryana with an installed
capacity of processing 36,000 Tonnes of paddy per annum as on
September 30, 2019. Further, the firm is also engaged in trading of
rice and milling job work. Moreover, SSR is an ISO 9001:2005, ISO
9001:2009, and ISO: 22000 certified firm.
SIKAR BIKANER: Ind-Ra Hikes Bank Loan Rating to B-, Outlook Stable
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Sikar Bikaner
Highway Ltd.'s (SBHL) bank loans' rating as follows:
-- INR3,453.7 bil. (reduced from INR4.0 bil.) Senior project bank
loans upgraded with IND B-/Stable rating.
Analytical Approach: Ind-Ra continues to take a standalone view of
SBHL to arrive at the rating.
The upgrade reflects SBHL's improved liquidity profile, with
notable growth in the average daily toll collection in FY24. The
rating is also supported by adequate liquidity in the form of six
months of debt service reserve account (DSRA), and the removal of
the restrictions that had been placed by the National Company Law
Appellate Tribunal (NCLAT) on SBHL as a part of the ILFS group
pursuant to the transfer of majority shareholding to Roadstar Infra
Investment Trust (Roadstar InvIT), an InvIT by floated by IL&FS
Transportation Networks Limited. However, the benefits from the
transfer to the InvIT are yet to be seen.
The project had been under moratorium since October 2018, and
interest for the period of moratorium (October 2018 to March 2021),
amounting to INR958.4 million, has been waived off. The debt was
restructured to provide for a longer repayment tenure and the
interest rate being linked to marginal cost of lending rate (MCLR).
As per the terms of restructuring, debt repayment had to commence
from FY22; however, due to delays in finalizing the terms, the
project could start servicing debt only from March 2023. Post
restructuring, the company has repaid the debt for the period
between April 2021-March 2023, amounting to around INR475 million,
and has serviced the debt in a timely manner since March 2023. Post
the restructuring, the total outstanding debt stood at INR3,959.6
million without any haircut on debt, and the outstanding debt as of
December 2023 was INR3,453.7 million. The traffic on the project
had declined during FY20-FY21 owing to the pandemic and prolonged
farmer's agitation in Rajasthan, post which the average daily toll
revenue recovered during FY23 and 1HFY24.
The rating is constrained by the pending resolution of an external
unsecured loan of INR299.14 million provided by Empower India
Limited (EPL, third party lender) that was due to be repaid in FY20
as per the terms of the loan, which was not part of the debt
restructuring. Considering that the loan is not being serviced by
SBHL, an event of default can be called upon by EPL. A petition has
been filed with the NCLAT by IL&FS Financial Services Limited
(IFIN) for the resolution of this loan through assignment of the
same to IFIN.
Key Rating Drivers
Growth in Toll Collection: The gross toll revenue increased to
INR746.27 million (average daily collection of INR2.046 million) in
FY23 from INR422.54 million (daily collection of INR1.16 million)
in FY22. The actual average daily toll revenue for 1HFY24 was
INR2.21 million, indicating an increase of 7.9% from FY23 levels.
The increase in revenue is attributable to growth in the traffic
volume along with an increase in the toll rate, which is linked to
wholesale price index growth.
The agency's base case revenue assumptions for FY24 factors in the
availability of adequate liquidity, excluding debt service reserve
(DSR), to take care of any temporary shortfall in debt servicing
obligations. Any volatility in toll collections because of factors
such as toll leakage, lack of timely increase in rates, economic
downturns, changes in government policies might impact the
project's cash flow and debt coverage.
Liquidity Indicator - Adequate: As of December 2023, the project
had DSRA of INR189. 2 million, other fixed deposits of INR315
million and surplus cash of INR116.8 million. The DSRA is
sufficient to meet two quarters' debt obligations in accordance
with the stipulations. As per the agency's base case assumptions,
the cash flows are comfortable, with the debt service coverage
ratio being above 1.20x. However, the coverages would be muted in
the year of major maintenance, considering the absence of major
maintenance reserves.
Commercial Traffic Predominant Across Toll Plaza: The overall car
traffic-based revenue, on an average, accounted for close to 40% of
the total annual revenues during FY20-FY23. Commercial traffic
(highest for multi axle vehicles) accounted for the balance 60%.
The mix for passenger traffic and commercial traffic in 1HFY24 was
44:56. Recent trends have indicated an increase in the contribution
of car traffic to the total revenue. The rise in the overall
traffic has been driven by increased economic activity on the
stretch, which passes through three districts of Rajasthan, namely
Sikar, Churu and Bikaner, which is a major tourist destination in
the state. It acts as an important connectivity for these districts
as well as the north and west Rajasthan with the state capital,
Jaipur. The important towns and settlements along the project
corridor are Sikar, Laxmangarh, Fatehpur, Ratangarh, Shri
Dungargarh and Bikaner.
Moderate Operation and Maintenance Risk: SBHL has entered into a
fixed price contract (excluding GST) with Elsamex Maintenance
Services Limited, for taking up the routine operations and
maintenance of the road. The project would undergo two major
maintenance cycles, and the work would be carried on in various
phases as discussed with the management. Bids would be invited for
each phase of maintenance. The major maintenance would be funded
from internal accruals of the project. The same has been factored
in the projections for the current maintenance cycle to be
undertaken.
Moderate Debt Structure: Post the restructuring, the project's cash
flows benefit from the increase in the loan tenor by seven years.
As per the revised terms, the principal is to be repaid quarterly
in 54 installments ending in FY35, while the interest rate is
linked to 1-year MCLR. The financing documents also stipulate the
creation of DSRA for two quarters' interest, and installments in
the form of fixed deposits, which have been created.
Rating Sensitivities
Negative: The following developments, individually or collectively,
could lead to a negative rating action:
significant deterioration in the operating performance, leading to
significantly lower coverages than Ind-Ra's estimates;
any significant depletion in the DSR from the stipulated level; and
absence of adequate liquidity to support the project during times
of temporary traffic underperformance.
Positive: The following developments, individually or collectively,
could lead to a positive rating action:
adequate liquidity being maintained in the system operating
performance being in line with Ind-Ra's projections conclusion of
the appeal at the NCLAT, resulting in subordination of the
borrowing with no event of default being called upon non-payment of
such loan
Company Profile
SBHL, which is wholly-owned by IL&FS Transportation Networks
Limited ('IND D'), is a special purpose company incorporated to
undertake the widening and operations of a combination of a
two-lane and a four-lane highway (National Highway 11) in
Rajasthan. The concession grantor is the Public Works Department of
the government of Rajasthan. The concession is for 25 years, with a
right to collect toll during the concession. The security and terms
of the subordinate debt agreement is junior to the senior debt.
SMT MACHINES: CARE Keeps D Debt Rating in Not Cooperating Category
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of SMT
Machines (INDIA) Limited (SML) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.20 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 December 13,
2022, placed the rating(s) of SML under the 'issuer
non-cooperating' category as SML 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. SML
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated October 29, 2023, November 8, 2023, November 18,
2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The entity, an ISO 9001:2008 certified company, was incorporated in
June, 1992 as a private limited company by the name of Aman
Multilateral Private Limited, however, in December, 1994, the
constitution and name was changed to SMT Machines (India) Limited
(SMI). The company is currently being managed by Mr. Surinder Kumar
Mittal and Mr. Raman Mittal. SMI is engaged in manufacturing of
capital goods like shearing machines, conveyors, straightening
machines, mill stands, gear boxes, cooling bed, etc. which find
their application in steel and iron rolling mills at its
manufacturing plant located in Mandi Gobindgarh, Punjab.
SRS LIMITED: Ind-Ra Keeps D Rating in Non-Cooperating
-----------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained SRS Limited's
instrument(s) rating in the non-cooperating category. The issuer
did not participate in the surveillance exercise, despite
continuous requests and follow-ups by the agency through emails and
phone calls. Therefore, investors and other users are advised to
take appropriate caution while using the rating. The rating will
continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.
The detailed rating actions are:
-- INR3.50 bil. Fund Based Working Capital Limit maintained in
non-cooperating category with IND D (ISSUER NOT COOPERATING)
rating;
-- INR4.750 bil. Non-Fund Based Working Capital Limit maintained
in non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating;
-- INR2.250 bil. Term Deposit maintained in non-cooperating
category with IND D (ISSUER NOT COOPERATING) rating; and
-- INR100 mil. Term loan maintained in non-cooperating
category with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
SRS was incorporated in 2000 as SRS Commercial Company Limited. It
was renamed SRS Limited in 2009. The company has three business
verticals: jewelry, retail and multiplex. SRS is engaged in the
manufacture, retail and wholesale of gold and diamond jewelry. It
also operates a chain of modern format retail stores and a chain of
cinemas across north India. The company owns a shopping mall in
Faridabad, apart from various restaurants and food courts.
STAR SCHOOL: Ind-Ra Keeps D Rating in Non-Cooperating
-----------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Star School
Samiti's instrument(s) rating in the non-cooperating category. The
issuer did not participate in the surveillance exercise, despite
continuous requests and follow-ups by the agency through emails and
phone calls. Therefore, investors and other users are advised to
take appropriate caution while using the rating. The rating will
continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.
The detailed rating actions are:
-- INR20 mil. Fund Based Working Capital Limit maintained in non-
cooperating category with IND D (ISSUER NOT COOPERATING)
rating; and
-- INR89.5 mil. Term loan due on December 31, 2021 maintained in
non-cooperating category with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
Star School Samiti was established in 1980 to provide technical and
allied education services. It manages two institutes (Shiv Kumar
Singh Institute of Technology and Science and Shiv Kumar Singh
College of Professional Studies) and two schools (SKS International
School and Star Public School) in Indore.
START SMART: Voluntary Liquidation Process Case Summary
-------------------------------------------------------
Debtor: START SMART KNOWLLEDGE PRIVATE LIMITED
C-30/6-A, SECTOR - 62, NOIDA,
GAUTAMBUDDHANAGAR
UTTAR PRADESH, INDIA, 201301
Liquidation Commencement Date: December 14, 2023
Court: National Company Law Tribunal, Allahabad Bench
Liquidator: Rajesh Kumar Goel
H-127, Sarita Vihar, (Opp. Sarita (Sadan),
New Delhi-110076
E-mail: rajesh.goel@mrgoel.com
Contact No: +91 9810025387
Last date for
submission of claims: January 13, 2024
SWASTIK COAL: Ind-Ra Keeps D Rating in Non-Cooperating
------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Swastik Coal
Corporation Pvt. Ltd.'s instrument(s) rating in the non-cooperating
category. The issuer did not participate in the surveillance
exercise, despite continuous requests and follow-ups by the agency
through emails and phone calls. Therefore, investors and other
users are advised to take appropriate caution while using the
rating. The rating will continue to appear as 'IND D (ISSUER NOT
COOPERATING)' on the agency's website.
The detailed rating actions are:
-- INR290 mil. Bank Loan maintained in non-cooperating category
with IND D (ISSUER NOT COOPERATING) rating;
-- INR425 mil. Fund Based Working Capital Limit maintained in
non-cooperating category with IND D (ISSUER NOT COOPERATING)
rating; and
-- INR3.035 bil. Non-Fund Based Working Capital Limit maintained
in non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
Indore-based SCCPL, the flagship company of Swastik Group, is
engaged in coal import and trading. The company is promoted by
Hitesh Bindal and Vishnu Bindal.
TIRUPATI CARBONS: Ind-Ra Hikes Loan Rating to BB-, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Tirupati Carbons &
Chemicals Private Limited's (TCCPL) bank facilities to 'IND BB-'
from 'IND B+ (ISSUER NOT COOPERATING)'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR70 mil. Fund-based working capital limits upgraded with IND
BB-/Stable rating; and
-- INR10 mil. Non-fund-based working capital limits upgraded with
IND A4+ rating.
Analytical Approach: Ind-Ra continues to take a standalone view
while arriving at TCCPL's ratings.
The upgrade reflects an increase in TCCPL's revenue due to the
execution of a higher number of orders, leading to an improvement
in the credit metrics in FY23. The upgrade also reflects Ind-Ra's
expectation of the credit metrics to remain comfortable in
FY24-FY25 due to low debt levels and the absence of any debt-led
capex plans.
Key Rating Drivers
TCCPL's revenue surged to INR455.62 million in FY23 (FY22:
INR289.70 million) due to the execution of a higher number of
orders. The company procures semi-finished graphite from other
companies and processes it at its facilities situated in Rajdewra
and Visakhapatnam. In 7MFY24, TCCPL booked revenue of INR188.72
million. However, Ind-Ra expects the revenue to decline in FY24 due
a low order book size of around INR160 million, of which 50% is
executed and the remaining is to be executed by March 2024. The
scale of operations remain small.
Furthermore, the gross interest coverage (operating EBITDA/gross
interest expense) improved to 2.41x in FY23 (FY22: 1.98x) and net
leverage (adjusted net debt/operating EBITDA) to 4.29x (6.36x), due
to an increase in the operating EBTIDA to INR20.40 million
(INR12.38 million) and a fall in the debt levels to INR87.52
million (INR94.51 million). Ind-Ra expects the credit metrics to
remain at similar levels in FY24-FY25 due to the absence of any
capex plans.
The ratings continue to factor in TCCPL's modest EBITDA margins of
4.48% in FY23 (FY22: 4.27%) with a return on capital employed of
9.7% (4.8%). The marginal increase in the EBITDA margins was on
account of a decrease in excavation and dumper expenses. In FY24,
Ind-Ra expects the margins to remain at a similar level because of
the similar nature of orders.
Liquidity Indicator - Poor: The company's average maximum
utilization of the fund-based and non-fund-based working capital
limits was 97.40% and 90.12%, respectively, during the 12 months
ended December 2023. The company's net working capital cycle
shortened to 98 days in FY23 (FY22: 133 days) mainly due to a
decrease in the inventory holding period to 28 days (133 days) and
receivable period to 28 days (53 days), partially offset by a
decline in the payable period to 2 days (7 days). The cash flow
from operations turned negative to INR12.34 million in FY23 (FY22:
INR5.47 million) due to an increase in working capital requirement.
Consequently, the free cash turned negative to INR14.55 million in
FY23 (FY22: INR5.47 million). At FYE23, it had cash and cash
equivalents of INR0.06 million (FYE22: INR15.80 million). The
company has scheduled repayments of INR7.9 million and INR7.9
million in FY24 and FY25, respectively.
However, the ratings remain supported by the promoter's experience
of over two decades in graphite manufacturing, leading to
established relationships with customers and suppliers.
Rating Sensitivities
Positive: A significant improvement in the scale of operations,
leading to a further improvement in the credit metrics on a
sustained basis, would lead to a positive rating action.
Negative: A decline in the scale of operations, leading to
deterioration in the credit metrics with the net leverage
increasing above 5.5x or a further pressure on the liquidity
position, all on a sustained basis, will be negative for the
ratings.
Company Profile
Incorporated in December 2006, TCCPL manufactures graphite from
semi-processed graphite. It has an installed capacity of 3,600 tons
per annum and its production capacity is 3,000 tons per annum as of
FY23.
UNIVERSAL EDUCATIONAL: Ind-Ra Keeps C Rating in NonCooperating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Universal
Educational Society's instrument(s) rating in the non-cooperating
category. The issuer did not participate in the surveillance
exercise, despite continuous requests and follow-ups by the agency
through emails and phone calls. Therefore, investors and other
users are advised to take appropriate caution while using the
rating. The rating will continue to appear as 'IND C (ISSUER NOT
COOPERATING)' on the agency's website.
The detailed rating actions are:
-- INR35 mil. Bank Overdraft maintained in non-cooperating
category with IND C (ISSUER NOT COOPERATING) rating; and
-- INR335.53 mil. Term loan due on June 30, 2027 maintained in
non-cooperating category with IND C (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
Incorporated in 2008, Universal Educational Society manages and
operates the Universal group of institutes in Mohali District,
Punjab.
UPL CORP: Moody's Assigns Ba1 CFR, Cuts Unsec. Debt Rating to Ba1
-----------------------------------------------------------------
Moody's Investors Service has downgraded to Ba1 from Baa3 the
senior unsecured rating for UPL Corporation Limited (UPL Corp).
Moody's has also downgraded to Ba3 from Ba2 the rating on the
long-term junior subordinated rating on UPL Corp's $400 million
undated perpetual Eurobonds.
At the same time, Moody's has assigned a Ba1 corporate family
rating to UPL Corp and withdrawn the company's Baa3 issuer rating.
Moody's has also maintained the negative rating outlook.
"The downgrade to Ba1 is driven by a protracted deterioration in
the agrochemical industry fundamentals that will keep UPL's credit
metrics weaker than Moody's expectation for an investment-grade
rating," says Kaustubh Chaubal, a Moody's Senior Vice President.
Moody's rating action follows UPL's weak operating results for the
third quarter (Q3) of the fiscal year ending March 2024 (fiscal
2024). During Q3 fiscal 2024, the company's revenue and EBITDA fell
28% and 86% respectively, compared to the same period last year,
causing its Moody's adjusted gross debt/last twelve month (LTM)
EBITDA leverage to spike to around 7.0x, from 4.8x as of September
2023 and 3.4x as of March 2023.
"UPL entered the current industry down cycle with substantial
leverage. This, combined with UPL's working-capital intensive
business model and its weak liquidity have exacerbated the impact
of the tight funding conditions on its credit profile," adds
Chaubal who is also Moody's lead analyst for UPL.
RATINGS RATIONALE
UPL Group (UPL) comprises the ultimate holding company, UPL Ltd,
and its various Indian and overseas operating subsidiaries,
including UPL Corp. Given the significant overlap among the group's
Indian and overseas operations, as well as the common treasury
function under the parent entity UPL Ltd, Moody's ratings for UPL
Corp continue to reflect the credit quality of UPL Group as a
whole.
Moody's previously expected the pace of channel destocking, rebates
and price declines to abate by December 2023. However, it now
appears that the global agrochemical industry's woes will likely
linger into the next fiscal year. The rating agency's revised
forecasts assume that UPL's fiscal 2024 revenues will drop by a
quarter and then by another mid-single digit percentage in the
following fiscal year. As Moody's projects UPL's EBITDA margin will
remain at 10%-15% over fiscal years 2024 and 2025, the company's
working capital-intensive operations will likely keep debt
elevated, resulting in its Moody's-adjusted debt/EBITDA to be close
to double digits and its EBITDA just about matching its inflated
interest cost. These projected metrics are significantly outside
the rating agency's thresholds for a Ba1 rating.
Furthermore, UPL's heavy reliance on short-term financing remains a
key credit concern. The company's current liabilities account for
almost 60% of its total liabilities. Since dues to its suppliers
make up a large portion of its current liabilities, their continued
support remains key to the company managing its working capital
well. A slowdown in the company's manufacturing due to industry
challenges, as well as its inherently working capital-intensive
operations, led to a large cash outflow thus far during fiscal
2024. Ongoing high interest rates and scarce market liquidity and
credit availability could prompt suppliers to tighten credit norms,
exerting pressure on the company's working capital and liquidity,
which could further worsen its debt/EBITDA leverage.
In December 2023, UPL announced that its board of directors
approved a rights issuance of up to $500 million. Underwritten by
the promoter family, the rights issue will stave off immediate
liquidity pressure for the company; albeit only marginally because
of the large funding gap given the company's insufficient cash flow
generation with the earnings decline and the business' inherent
working capital intensity.
UPL's Ba1 CFR reflects the company's substantial scale, leading
global position in post-patent agrochemicals, and its
geographically diversified, vertically integrated operations that
produce key raw materials and a product slate that caters to the
entire agricultural food value chain. Despite its diverse offerings
that include seeds and agrochemicals used in crop cultivation,
protection and preservation, like its peers, the company remains
exposed to varying weather patterns that affect agrarian economies,
as well as the long gestation period spanning farm-land
preparation, sowing, cultivation to harvesting, which results in
elongated working capital cycles.
The company's weaker earnings and the resultant strain on its
credit profile are consistent with its rated agrochemical peers.
Moody's will continue to closely monitor the competitive
environment and UPL's ability to navigate industry challenges while
preserving its credit quality and improving its liquidity --
factors that are critical to supporting the company's Ba1 rating.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) CONSIDERATIONS
Moody's has changed the subfactor score on UPL's governance, on
'financial strategy and risk management' to 3 from 2 – to reflect
the company's elevated leverage and weak liquidity. The company's
governance issuer profile score (G-IPS) is unchanged at G-3. The
Credit Impact Score also remains unchanged at CIS-3 indicating
Moody's view that ESG considerations have an overall limited impact
on UPL's Ba1 CFR, but may have greater potential for a negative
impact over time.
RATINGS OUTLOOK
The negative outlook reflects the significant deterioration in
UPL's earnings and cash flow amid a challenging operating
environment that will keep the company's credit metrics weakly
positioned for its Ba1 CFR.
LIQUIDITY
Moody's assesses UPL's liquidity as weak. The company's cash and
cash equivalents of $580 million as of December 2023 will not cover
its large financial obligations amounting to $1.9 billion for the
15 months until March 2025 towards scheduled debt repayments
(including short-term debt), capital expenditure and shareholder
payouts. This risk is further exacerbated given the rating agency's
expectation that the company's operating cash flow will remain in
deficit due to the challenging industry conditions.
Moreover, as an agrochemical company, UPL's cash flow generation is
subject to extreme intra-year fluctuations in its working capital,
making the company heavily reliant on its uncommitted, short-term
working capital facilities to manage temporary imbalances. For
instance, UPL's working capital outflow during the first half of
fiscal 2024 was almost $1.4 billion, which the rating agency
expects to somewhat reverse in the second half with a working
capital release of about $950 million. Shortfalls or delays in the
working capital release will further strain UPL's liquidity.
Whereas UPL has a track record of operating with continued access
to short-term financing, the current high interest rates and
stretched market liquidity would pose difficulty, especially in a
challenging industry environment plagued with declining volumes,
falling end-product prices and large working capital outflows.
Moreover, narrowing headroom under its financial covenants would
also restrict the company's continued access to funding.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings are unlikely to be upgraded given the negative
outlook.
Moody's could change the outlook to stable if UPL implements
financial policies and actions that substantially shore up its
liquidity, improve credit metrics and restore its balance sheet
strength, and if there are signs of a return to normalized industry
conditions. Credit metrics appropriate for a Ba1 CFR include
leverage of around 4.0x and EBITDA/interest greater than 2.5x.
Conversely, Moody's would downgrade the ratings if the company's
liquidity profile remains weak or if industry conditions stay
challenging with credit metrics stretched for its Ba1 CFR.
Furthermore, breaches on any of its financial covenants absent any
timely waivers would also exert downward ratings pressure.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Chemicals
published in October 2023.
CORPORATE PROFILE
UPL Corp is a wholly-owned subsidiary of UPL Limited, a leading
global agrochemical company that operates in the post-patent space.
UPL Limited generated revenues of INR455 billion ($5.5 billion) and
an estimated EBITDA of INR63 billion ($750 million) during the
twelve months ended December 2023.
Listed on India's National Stock Exchange and the Bombay Stock
Exchange, UPL Limited was 32.35% (as of December 31, 2023) owned by
its promoter family, led by Jaidev Shroff, chairman and Group CEO.
UPL CORP: S&P Downgrades Long-Term ICR to 'BB', Outlook Negative
----------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
UPL Corp. to 'BB' from 'BB+.' S&P also lowered its issue rating on
the company's senior unsecured notes to 'BB' from 'BB+' and
subordinated perpetual securities to 'B+' from 'BB-'.
The negative rating outlook reflects risk that the company's
earnings recovery may be prolonged and cash flow fail to recover
rapidly over the next 12 months.
S&P said, "We expect UPL Corp.'s weakened operations and increased
debt levels to aggravate its credit quality. Agrichemical industry
fundamentals sharply deteriorated in recent quarters, and
industry-wide destocking and price declines have negatively
affected major players, including UPL Corp. That is particularly
the case in Latin America, which typically accounts for about 40%
of the company's sales. We believe normalization of operations will
take time. Destocking will likely continue through the first half
of fiscal 2025 (year end March 31), while high production from
competitors will continue to pressure prices. We expect a gradual
recovery in the industry. However, we also expect UPL Corp.'s use
of rebates to attract sales during the recovery will reduce
profitability.
"We forecast UPL Corp.'s EBITDA in fiscal 2024 (ending March 31)
will decline by 60% to Indian rupee (INR) 46 billion, and its
EBITDA margin will contract to about 11% from fiscal 2023's 21.2%.
We expect a notable recovery in fiscal 2025 EBITDA and EBITDA
margin to INR70 billion and 14%, respectively. Nonetheless, these
levels are not at commensurate with a 'BB+' rating, which was based
on an expectation of a gradual deleveraging. Based on our revised
forecast, we expect UPL Corp.'s funds from operations (FFO) to debt
to drop sharply to 1.5% in fiscal 2024 from 23.4% a year prior, and
recover to around 12% by fiscal 2025.
"Elevated working capital with the absence of long-term committed
credit lines is an ongoing risk for liquidity. Due to soft markets
for its agrochemicals, UPL Corp.'s short-term debt ballooned to
INR119 billion during the second quarter of fiscal 2024. It stood
at INR28.6 billion at the end of fiscal 2023. UPL Corp. has
previously securitized receivables to free up some working capital
at the fiscal year-end, alleviating short-term liquidity pressures.
Given the state of agrichemical markets, we believe the company's
securitization program may free up lower amounts of working capital
than in the past. Furthermore, its working capital is funded by
short-term (less than one year) credit lines.
"While the company maintains good banking relationships and we
expect it to roll over its facilities, we believe this weakens its
liquidity in an environment of still elevated funding costs and a
weakening credit quality. Furthermore, we believe, because of lower
earnings, the company has a limited cushion when complying with its
loan covenants. As a result, we have revised our assessment of UPL
Corp.'s liquidity to less than adequate, from adequate."
UPL Corp. has measures in place to support its operations and
liquidity. UPL Corp.'s parent, UPL Ltd., has announced a rights
issuance of up to US$500 million to be executed before the fiscal
2024 year-end. UPL Corp. is also exploring options to raise
additional capital by monetizing its business assets. These
measures, while alleviating liquidity stress to some extent, are
not adequate to offset the impact of the weakened business cycle.
Furthermore, UPL Corp. has around US$2.5 billion in short term
credit lines from multiple banks. They are uncommitted, repayable
in less than six months, and have been used for working capital. As
of December 2023, the company had unused credit lines of about
US$1.1 billion.
The negative outlook on UPL Corp. reflects the potential that the
current industry downturn is prolonged beyond the first quarter of
fiscal 2025, with the company's operating cash flow failing to
recover rapidly over the next 12 months. The outlook also reflects
the uncertain outcome of the company's initiatives to deleverage
through equity infusion and better working capital management.
S&P said, "We may lower the rating on UPL Corp. if weak operating
conditions, low margins and stretched financial metrics continue.
This would be the case if we do not have visibility over the next
year that UPL Corp.'s FFO-to-debt ratio will recover towards 20%
sustainably. We may also downgrade UPL Corp. if its efforts to
deleverage are derailed, potentially due to debt-funded
acquisitions or shareholder-friendly returns.
"We could revise the outlook back to stable if UPL Corp.'s earnings
and cash flow generation strongly recover in line with our
expectation of a turnaround in global agrichemical market
conditions, and the company deleverages, such that its FFO-to-debt
ratio trends towards 20%."
VIRUTCHAM MICROFINANCE: Ind-Ra Affirms BB+ Bank Loan Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has taken the following rating
actions on Virutcham Microfinance Limited's (VML) bank loans:
-- INR400 mil. Bank loans affirmed with IND BB+/Stable rating;
and
-- INR440 mil. Bank loans assigned with IND BB+/Stable rating.
Analytical Approach: Ind-Ra continues to take a standalone view of
VML for the rating review.
Key Rating Drivers
Continued Small Scale of Operations; High Geographic Concentration:
VML's book stood at INR1,050 million at end-November 2023 (March
2023: INR842 million, March 2022: INR531 million, March 2021:
INR511 million). The company's book remained skewed towards Tamil
Nadu, with 74% of its assets under management (AUM) being
concentrated in the state, followed by Karnataka (17.3%) and Kerala
(6.08%), exposing it to high geographical concentration risk. The
company entered Karnataka in FY23, where it has a business
correspondence book of INR180 million. The entity is looking for
further expansion (own book and business correspondence book) in
the neighboring southern states over the medium term. Ind-Ra
believes contiguous expansion would be better for the company, as
non-contiguous expansion might present operational and
control-related challenges.
Profitability Remains Modest, but Likely to Improve in FY24:
During 2QFY24, the company reported a modest profit of INR8.3
million (FY22: INR11.5 million, FY21: INR10.7 million), with a
return on average assets of 1.64% (1.79%; 1.59%). The profitability
remained moderate due to continued high operating
expenditure/assets of 7.7% during FY23 (FY22: 7.2%; FY21: 7.8%) and
constrained spreads, resulting from regulators capping the interest
rates at which the company can lend. The profitability is partly
supported by the company's historically low credit costs of under
1%. In FY24, with the scaling up of operations, Ind-Ra expects the
profitability to improve modestly while maintaining the credit
costs. Furthermore, the removal of the lending caps after the
implementation of harmonization guidelines would contribute to its
profitability and increase the viability of small-sized
microfinance institutions (MFIs) across India. It will also enable
MFIs to transmit higher borrowing costs.
Moderate Asset Quality: VML's gross non-performing assets stood at
0.01% at end-September 2023 (FY22: 1.3%, FY22: 1.16%), similar to
those of its peers with a comparable portfolio size in the
microfinance segment. Ind-Ra opines the company's relatively
smaller portfolio, and smaller area of operations compared to
larger non-banking finance company (NBFC)- MFIs have provided it
better ability to control its portfolio quality. However, as the
operations are mainly related to unsecured microfinance loans, it
continues to face systemic and idiosyncratic risks, given the
vulnerable socio-economic profiles of its borrowers.
Moderate Capitalization; Raising Capital over Near Term Critical
for Maintaining Growth Momentum: VML's leverage (debt/equity)
deteriorated to 4.1x in 2QFY24 (FY22: 2.6x, FY21: 2.6x) on account
of debt-funded growth in FY23. The promoters infused INR30 million
in the company in December 2023. Ind-Ra believes equity infusion is
critical for the company to meet its medium-term growth objectives
while maintaining its mid-term leverage below 5x and adequate
capital buffers (Tier-1 - FY23: 21.7%; FY22: 30.86%; FY21: 29.3%).
The management plans to raise INR100 million-150 million of capital
from prospective investors in FY24 to maintain adequate capital
buffers; this is a key monitorable.
Diversified Funding Source: VML's funding profile remains
reasonably diversified, with its loans sourced from both NBFCs (40%
of the total funding) and banks (60%) at end-November 2023,
demonstrating the company's funding flexibility. While the
company's cost of funds remained stable at 11.9% during 2QFY24
(FY22: 10.9%; FY21: 15.7%), it was able to raise funds at low
interest rates of 9.2%-11.5%, mainly through public sector banks;
however, borrowings from NBFCs were at higher interest rates of
13.5%-16%. VML's ability to maintain diversified funding sources
along with continued healthy relationships with public sector banks
would be the key determinants of its continued diversity and
ability to reduce its borrowing costs.
Liquidity Indicator – Adequate: At end-November 2023, VML had
maintained a cumulative surplus of around 13% of its total assets
in the up-to-one-year bucket. As of December 2023, the company had
cash of INR38 million, sufficient to meet bank repayments of INR25
million over the next one month, which is in accordance with the
company's stated liquidity policy. VML has also indicated that the
promoters would infuse INR10 million-15 million in it, as and when
needed. Considering the unsecured nature of lending and high
geographic concentration risk, the agency considering the
maintaining of adequate liquidity buffers to be extremely crucial.
Stable Outlook on Small-Mid NBFC-MFIs: Ind-Ra revised its Outlook
on the microfinance sector to improving for FY24 from neutral while
maintaining the rating Outlook at Stable. The agency has maintained
that the new regulations are positive for the sector and provide
all microfinance companies with the ability to price in risks while
providing a level playing field for non-NBFC-MFIs in terms of
applicable regulations. However, the agency also expects the impact
of elections in key states in FY24 on the sector to be a key
monitorable. Also, there is an increasing exposure per borrower in
an inflationary environment with a possibly non-commensurate
increase in income levels; this aspect would also be a key
monitorable.
Rating Sensitivities
Negative: Deterioration in the profitability and capital impairment
arising from deterioration in asset quality (gross non-performing
assets exceeding 5%), inability to secure adequate funding and
refinancing from financial institutions, the leverage exceeding
4.5x, on a sustained basis, and inability to maintain adequate
capital buffers could result in a negative rating action.
Positive: A positive rating action could result from the company's
ability to raise significant capital, expand and diversify the
franchise, scale up operations while maintaining stable asset
quality levels, modest funding diversification and adequate
short-term liquidity.
Company Profile
VML was incorporated as an NBFC on 8 July 2008 and was converted
into an NBFC-MFI on 6 June 2014. The company started its
microfinance operations in November 2008. It primarily provides
microfinance services to women in the rural areas of India.
WDB INDIA: Voluntary Liquidation Process Case Summary
-----------------------------------------------------
Debtor: WDB India Private Limited
4th Floor, Plot No. 47, 48, 49,
Street 1, 2nd Avenue, Patrika Nagar,
Syno.77/P, Madhapur Seriilingampally,
Rangareddi, Hyderabad,
Telangana-500081, India
Liquidation Commencement Date: December 18, 2023
Court: National Company Law Tribunal, Hyderabad Bench
Liquidator: Atul Mehta
19, Sunshine Building
78 B Dr A.B Road Worli, Near Worli Naka,
Mumbai City, Maharashtra -400018, India
E-mail: csatulmehtagmail.com
E-mail: atul@mehta-mehta.com
Telephone No: +91-9820223978
Last date for
submission of claims: January 17, 2024
WINSOME INTERNATIONAL: Ind-Ra Hikes Bank Loan Rating to BB-
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has taken the following rating
actions on Winsome International Limited's (WIL) bank facilities:
-- INR160 mil. Fund-based working capital limits upgraded with
IND BB-/Stable/ INDA4+ rating;
-- INR82.5 mil. Fund-based working capital limits assigned with
IND BB-/Stable/ IND A4+ rating; and
-- INR47.5 mil. Term loan due on March 2032 assigned with IND BB-
/Stable rating.
Analytical Approach: Ind-Ra continues to take a standalone view of
WIL to arrive at the rating.
The upgrade reflects an improvement in WIL's revenue, EBITDA
margins and credit metrics in FY23, and the likelihood of further
improvement in the same during FY24.
Key Rating Drivers
WIL's revenue increased to INR712 million in FY23 (FY22: INR598.3
million) because of increased capacity utilization along with an
increase in the number of orders received by the company. The scale
of operations continued to be small. In 7MFY24, WIL achieved a
revenue of INR412.3 million and it has continuously been receiving
orders from the office of the jute commissioner. In FY24, Ind-Ra
expects the revenue to improve on account of further increase in
capacity utilization and growth in the number of orders, backed by
the government initiative for 100% food grain packaging in jute
bags from 2023-24.
WIL's EBITDA margin improved to a modest 8.38% in FY23 (FY22: 1.91
%) due to increased absorption of fixed costs, resulting from
higher capacity utilization. The ROCE was 7.7% in FY23 (FY22:
0.8%). In FY24, Ind-Ra expects the EBITDA margin to improve
slightly on account of increased capacity utilization and economies
of scale.
WIL's credit metrics remained modest but improved in FY23 owing to
an increase in absolute EBITDA to INR59.7 million (FY22: INR11.4
million). The gross interest coverage (operating EBITDA/gross
interest expense) was 2.7x in FY23 (FY22: 0.36x) and the net
financial leverage (adjusted net debt/operating EBITDA) was 9.25x
(46.9x). In FY24, Ind-Ra expects the credit metrics to improve
further due to a likely increase in the EBITDA.
Liquidity Indicator – Poor: WIL's average maximum utilization of
the fund-based limits was 98.9% during the 12 months ended December
2023, with an instance of overutilization for up to 26
non-consecutive days. The cash flow from operations turned negative
at INR44.1 million in FY23 (FY22: INR369.9 million) due to
unfavorable change in working capital. The free cash flow remained
negative at INR44.1 million (FY22: negative INR39.2 million) due to
the same reason. The net working capital cycle remain elongated and
deteriorated to 114 days in FY23 (FY22: 88 days) on account of an
increase in inventory days to 143 days (111 days) and reduction in
creditor days to 88 days (114 days). The cash and cash equivalents
stood at INR1 million at FYE23 (FYE22: INR0.5 million), against
scheduled repayments of INR2.9 million in FY24 and INR5.9 million
in FY25. WIL does not have any capital market exposure and relies
on banks and financial institutions to meet its funding
requirements.
The ratings, however, continue to be supported by WIL's promoters'
and management's experience of over five decades in the jute
industry, which has helped the company establish strong
relationships with customers as well as suppliers.
Rating Sensitivities
Negative: A decline in the scale of operations, leading to
deterioration in the overall credit metrics and/or further pressure
on the liquidity position, could lead to a negative rating action.
Positive: An increase in the scale of operations, along with an
improvement in the overall credit metrics, with the interest
coverage exceeding 3x and an improvement in the liquidity profile,
all on a sustained basis, could lead to a positive rating action.
Company Profile
WIL, a public limited company, manufactures jute products at its
unit in Muktapur, Bihar, which has 400 narrow looms with 5,420
spindles.
XRBIA DEVELOPERS: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: XRBIA DEVELOPERS LIMITED
Office No. 125/126, Patil Plaza
Mitramandal Chowk,
Parvati Pune MH 411009
Insolvency Commencement Date: January 7, 2023
Estimated date of closure of
insolvency resolution process: July 3, 2024
Court: National Company Law Tribunal, Mumbai Bench
Insolvency
Professional: Kamal Kumar Jadwani
2nd Floor, Orange Enclave, Plot 20,
Bhamti, Sujata Layout,
Near Panasse Bus Stop,
Nagpur, Maharashtra 440022
E-mail: kamaljadwani@gmail.com
Jain Jagawat Kamdar & Co.
301, 3rd Floor, Poonam Pearl bldg
Opp. New lndia Colony,
Juhu Lane, Andheri west, Mumbai - 400058
E-mail: xrbiacirp@gmail.com
Representative of creditors
in a class:
1. Vikas Khiyani
2. Ramesh Shetty
3. Bharati Daga
Last date for
submission of claims: January 21, 2024
=========
J A P A N
=========
[*] JAPAN: Marriage Agencies Going Bankrupt at Record Rate
----------------------------------------------------------
The Mainichi reports that bankruptcy numbers for Japan's marriage
consultation agencies, which introduce partners to tie the knot,
have reached an all-time high, according to a survey by research
firm Teikoku Databank Ltd. released on Feb. 6.
A total of 11 agencies filed for bankruptcy over the past year,
while another 11 closed, suspended operations, or were dissolved,
The Mainichi relates. But why have so many gone out of business so
suddenly?
While there is still a certain level of demand for marriage
consultations, the agencies are being hit by changes in society and
in lifestyles, such as Japan's declining birth rate and people
marrying later in life, The Mainichi says. And then there are the
apps.
According to a survey released by Meiji Yasuda Life Insurance Co.
in November 2023 on "how couples met," one in four couples who
married within the previous year said that they had met through
"matching apps." This was tied with those who said they had married
people they came to know at their workplace, suggesting that
matching apps pose a significant threat to marriage consultation
businesses.
The Mainichi says marriage consultation agencies are trying to
attract new clients with offerings like online interviews and
marriage hunting parties to create opportunities to meet new
people. However, the Teikoku Databank report notes that "it's
difficult for them to differentiate from other companies with basic
services, and it's very easy to fall into competing just on price.
High advertising costs are putting pressure on the firms'
businesses."
However, there are concerns about the rapid rise of matching apps.
While the convenience of being able to meet preferred partners
while maintaining anonymity has proven popular, there are also many
worries about problems connected to photos and mismatches.
In response, these apps are beginning to change their approach,
including by looking at adopting marriage consultation service
methods like introducing only verified users.
"It may be crucial for the future of marriage consultation
businesses to serve the needs of clients determined to get married
but who are not using apps, by providing opportunities for meeting
people," the Teikoku Databank report says.
===============
M A L A Y S I A
===============
TH HEAVY: Court Admits Creditors' Compulsory Liquidation Bid
------------------------------------------------------------
theedgemalaysia.com reports that the High Court in Malaysia has
allowed separate applications by creditors of cash-strapped
offshore fabricator and shipbuilder TH Heavy Engineering Bhd
(THHE), a Ministry of Finance-owned company, and its wholly owned
subsidiary THHE Fabricators Sdn Bhd (TH Fabricators) to obtain
leave to commence proceedings to have the two companies placed into
compulsory liquidation under Section 464(2)(d) of the Companies Act
2016 and to be placed under the court's supervision.
theedgemalaysia.com relates that the provision allows the court to
order a compulsory winding up, even if the company is wound up
voluntarily, if the court is satisfied that the voluntary winding
up cannot protect the interests of the creditors or
contributories.
Global Mariner Offshore Services Sdn Bhd, Blackstone Technology Sdn
Bhd and Dynac Sdn Bhd filed the application against THHE, while
Blackstone and Dynac filed separate applications against TH
Fabricators.
According to theedgemalaysia.com, both THHE and TH Fabricators have
already applied to be placed under voluntary winding up, and the
creditors were required to obtain leave under Section 451(2) before
they could apply to the court for them to enter a compulsory
winding-up order.
High Court judge Ong Chee Kwan granted the order against THHE and
TH Fabricators last Friday (Feb. 2), following a hearing. The court
also directed the creditors to file their application for a
compulsory winding-up order within 30 days from Feb. 2.
The decision was confirmed with The Edge by David Thomas Mathews,
who represented Global Mariner, Blackstone and Dynac. Mathews
appeared with Olivia Loh, Lai Ann Xing and Koh Jo Vin.
THHE and TH Fabricators, and their joint liquidators Andrew Heng
and Ashvin Mahendran, were represented by Mark Ho, Eldarius Yong
and Milcah Yeo.
Global Mariner, Blackstone and Dynac had sought leave as they
claimed the voluntary winding-up exercise by both companies (THHE
and TH Fabricators) had various breaches of statutory duties that
had been carried out.
According to theedgemalaysia.com, the creditors alleged that both
Heng and Ashwin were in a position of conflict of interest and were
unsuitable to be liquidators, as one of THHE's former senior
executives was in the same firm as Heng and Ashwin. The creditors
hoped that the court could appoint independent liquidators.
Prior to this, THHE had, by a director's resolution on Sept. 8,
2023, commenced a creditors' voluntary winding up, and had
appointed Heng and Ashvin as the interim liquidators.
A creditors' meeting was held on Oct. 4, 2023, which was chaired by
Ashvin.
There were no resolutions passed, as Ashvin had called off the
meeting shortly after it commenced, on grounds that the meeting was
not fully formed.
THHE had earlier passed a shareholders' resolution on Sept 6, 2023
to place TH Fabricators under a members' voluntary winding up, and
had appointed Heng and Ashvin as its liquidators.
The High Court had previously recorded a consent order on Oct 30,
2023 to restrain THHE, Heng and Ashvin, or their agents from
calling off a creditors' meeting and to prevent any steps to alter
the status quo, pending the decision on the creditors' leave
application.
theedgemalaysia.com relates that the High Court had prior to this,
also recorded a consent order to restrain them and maintain the
status quo of TH Fabricators, and to restrain the transfer,
disposal, sale, conveyance, distribution, encumbrance or dealings
of its assets, pending the decision on the creditors' leave
applications.
Formerly known as Ramunia Holdings Bhd, THHE is controlled by
MOF-owned unit Urusharta Jamaah Sdn Bhd (UJSB), which holds a
64.45% stake in the company, following a stake transfer from
Lembaga Tabung Haji (TH) back in December 2018.
The transfer was part of a rehabilitation exercise for TH, which
saw the transfer of more than 100 underperforming listed companies
that the Muslim pilgrimage fund invested in to UJSB.
THHE was listed on the Main Market of Bursa in January 2005, after
being actively involved in the oil and gas (O&G) industry since
2002. The O&G downturn in 2014 pulled the group into the red, of
which it has not been able to recover since.
The group then shifted to shipbuilding and ship repair as its core
business in a move to turn around the debt-ridden company in 2018.
However, the attempt to shift focus towards building vessels such
as offshore patrol vessels (OPVs) for the Ministry of Home Affairs
were unsuccessful in reviving its financial standing. THHE was
delisted on Sept. 5, 2022.
Apart from the financial year ended Dec. 31, 2019 (FY19), THHE has
been loss-making since FY14, theedgemalaysia.com notes.
About TH Heavy
TH Heavy Engineering Berhad is an investment holding company. The
Company is engaged in the provision of management services. The
Company is engaged in the fabrication of offshore steel structures
and the provision of other related offshore oil and gas engineering
services in Malaysia.
TH Heavy slipped into Practice Note 17 (PN17) status in April 2017
after the company's independent auditors expressed a disclaimer
opinion on its accounts for the financial year ended Dec. 31,
2016.
The company is currently formulating a regularisation plan that
includes a scheme that would demonstrate the company's ability to
generate adequate cashflow from operations.
=====================
N E W Z E A L A N D
=====================
COOLTHERM LIMITED: Court to Hear Wind-Up Petition on March 15
-------------------------------------------------------------
A petition to wind up the operations of Cooltherm Limited will be
heard before the High Court at Auckland on March 15, 2024, at 10:45
a.m.
C&Y NZ Limited filed the petition against the company on Dec. 21,
2023.
The Petitioner's solicitor is:
Jeffrey Gray Ussher
Level 19, 191 Queen Street
Auckland
HILLARY OUTDOORS: To Close Education Centre in Aotea
----------------------------------------------------
Radio New Zealand reports that the Hillary Outdoors education
centre on Aotea Great Barrier Island will close in May, ending a
nearly 20-year-long relationship with the area.
Hillary Outdoors offers outdoor education for schools and community
groups, including programs for the Duke of Edinburgh's Hillary
Award.
According to RNZ, Chief executive Hillary Campbell said increased
costs are to blame for the closure.
She said the cost of running services on the island has as much as
tripled since the onset of the Covid-19 pandemic.
"Basically since Covid first hit, operating from Aotea has faced
challenges, and also impacted our ability to deliver programmes at
times.
"The challenges of operating on a remote island, in the Hauraki
Gulf, has compounded tougher economic times that have persisted,
and that's just resulted in increased costs across nearly every
faucet of our operation," RNZ quotes Ms. Campbell as saying.
RNZ relates that Ms. Campbell said they have put the price of
education programmes at Great Barrier Island up, alongside
increases in the cost food, accommodation, and travelling to the
island.
She said this has made education programmes at the island
unaffordable for some, with 36 schools leaving Hillary Outdoors in
the last 18 months, RNZ relays.
There are over 400 schools that work with Hillary Outdoors, 200 of
which come to the Great Barrier centre.
Those students, alongside 10 community groups, will be relocated to
the Tongariro Centre.
"The community and our schools, they've just had a real sense of
understanding - heartbreak, as well, it's a beautiful centre - as
well as a willingness to figure out how to make it work at another
centre."
RNZ adds that Ms. Campbell said the Tongariro Centre will
temporarily expand to accommodate students from Great Barrier, but
they do not have plans to permanently grow the centre.
Staff at Great Barrier have had their way of life changed by news
of the closure, Campbell said, and have all been offered relocation
to Tongariro, retaining their current roles.
J & J CAFE: Court to Hear Wind-Up Petition on Feb. 15
-----------------------------------------------------
A petition to wind up the operations of J & J Cafe Limited will be
heard before the High Court at Palmerstone on Feb. 15, 2024, at
10:00 a.m.
APRA New Zealand Limited filed the petition against the company on
Nov. 13, 2023.
The Petitioner's solicitor is:
Tim Mullins
LeeSalmonLong
Level 34, Vero Centre
48 Shortland Street
Auckland 1010
LEH1 LIMITED: Court to Hear Wind-Up Petition on Feb. 16
-------------------------------------------------------
A petition to wind up the operations of Leh1 Limited will be heard
before the High Court at Auckland on Feb. 16, 2024, at 10:00 a.m.
APRA New Zealand Limited filed the petition against the company on
Nov. 13, 2023.
The Petitioner's solicitor is:
Tim Mullins
LeeSalmonLong
Level 34, Vero Centre
48 Shortland Street
Auckland 1010
LIBERTA SYSTEMS: Grant Bruce Reynolds Appointed as Liquidator
-------------------------------------------------------------
Grant Bruce Reynolds of Reynolds & Associates on Feb. 2, 2024, was
appointed as liquidator of Liberta Systems Limited.
The liquidators may be reached at:
Reynolds & Associates Ltd
PO Box 259059
Botany 2163
Auckland
OPUM TECHNOLOGIES: Liquidation Leaves NZD2.7 Million Shortfall
--------------------------------------------------------------
BusinessDesk reports that liquidators of artificial
intelligence-powered medical technology business Opum Technologies
said it is unlikely funds will be available to pay a NZD2.7 million
shortfall owed to creditors.
Opum was placed in receivership on July 25 after defaulting on
security agreements, prompting three lenders to appoint receivers
from Baker Tilly Staples Rodway, Jared Booth and Tony Maginness.
In September, the receivers sold the business for NZD950,000, and
on Dec. 14, Rees Logan and Andrew McKay of BDO were appointed
liquidators after an application of the receivers.
Opum Technologies went into receivership in July owing NZD2.5
million, and was placed into liquidation recently after receivers,
who sold the business for NZD950,000 in September, made an
application at the request of Opum's lenders.
The High Court at Auckland appointed Rees Logan and Andrew McKay of
BDO Auckland as the company's liquidators on Dec. 14, 2023.
On July 25, 2023, Tony Leonard Maginness and Jared Waiata Booth of
Baker Tilly Staples Rodway Auckland were appointed as receivers and
managers of Opum Technologies Limited.
RUAPEHU ALPINE: Future Uncertain as Buyer Backs Out
---------------------------------------------------
Radio New Zealand reports that the buyer of Ruapehu Alpine Lifts
has confirmed he has walked away from negotiations on purchasing
the Whakapapa skifield, leaving its future uncertain.
Tom Elworthy and his partners were the government's preferred
bidder for assets of the Whakapapa skifield on Mount Ruapehu.
But Mr. Elworthy said the deal was not worth it and no-one would be
willing to take on a business with more than $15 million of debt
repayments and other risks, RNZ relates.
New owners of the skifield needed to have a fresh operating
concession from the Department of Conservation.
A 10 year concession was offered to Mr. Elworthy's group but can be
reviewed at the five year mark, the report says.
The government committed $20 million towards keeping it afloat for
last year's ski season and over the last 16 months.
According to RNZ, the previous labour-led government said it was
important to keep RAL running for the local tourism sector and the
central North Island economy.
But its future is now unclear on whether the upcoming ski season
can go ahead this winter without tax payer's money to prepare it
for the next ski season and to hire workers.
Prime Minister Christopher Luxon told media ministers Tama Potaka
and Louise Upston, the MP for Taupo, were working on the issue and
conversations about it were on going, RNZ relays.
There would be "more to say about it later," Mr. Luxon said.
"It's frustrating for local businesses. Any business associated
with the mountain will be very, very concerned along with the
council. It turns over something like NZD100 million collectively
between the two mountains through our industry and that's certainly
a big hit for the community," RNZ quotes Mr. Kirton as saying.
He was aware that Whakapapa would be more difficult to negotiate
because of different mana whenua connections.
"This area is split into two in terms of iwi relationships and the
relationships with Tūroa are a little bit different from the
northern part of the mountain.
"We've got Tūwharetoa of course who put a bid in and indicated
they weren't happy with the arrangements that were made so it's
only my guess that there's been some sort of hiccup there in terms
of relationships if not how it should all be unfolded."
RNZ adds Mr. Kirton said it would be known in "due course" while
the potential sale failed.
"I suspect that DOC along with the other stakeholders couldn't see
their way clear to get something over the line."
He said he was not aware of the new government's position and will
urgently try to get ministers up to speed with everything happening
around RAL and how important it is to the areas economy.
About Ruapehu Alpine
Ruapehu Alpine Lifts Limited (RAL) operates the Whakapapa and Turoa
skifields in the central North Island.
John Fisk and Richard Nacey, of PwC, were appointed voluntary
administrators of RAL on Oct. 11, 2022, following a resolution of
the Directors of the Company.
Ruapehu Alpine Lifts was put into liquidation on June 21, 2023.
SOUTHERN LAKES: Creditors' Proofs of Debt Due on March 2
--------------------------------------------------------
Creditors of Southern Lakes Sightseeing Tourism Limited are
required to file their proofs of debt by March 2, 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 Feb. 2, 2024.
=================
S I N G A P O R E
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BREADSHAKE PTE: Court to Hear Wind-Up Petition on Feb. 23
---------------------------------------------------------
A petition to wind up the operations of Breadshake Pte Ltd will be
heard before the High Court of Singapore on Feb. 23, 2024, at 10:00
a.m.
RHB Bank Berhad filed the petition against the company on Jan. 26,
2024.
The Petitioner's solicitors are:
Rajah & Tann Singapore LLP
9 Straits View
#06-07 Marina One West Tower
Singapore 018937
CSK JAPAN: Creditors' Proofs of Debt Due on March 9
---------------------------------------------------
Creditors of CSK Japan Pte. Ltd., RW Chigasaki Pte. Ltd., and RW
Chigasaki SPE 1 Pte. Ltd. are required to file their proofs of debt
by March 9, 2024, to be included in the companies' dividend
distribution.
The companies commenced wind-up proceedings on Feb. 1, 2024.
The companies' liquidators are:
Muk Siew Peng
Keoy Soo Earn
6 Shenton Way
OUE Downtown 2, #33-00
Singapore 068809
FRIGO FOOD: Commences Wind-Up Proceedings
-----------------------------------------
Members of Frigo Food Logistics Pte. Ltd. and Pacific Trans Pte.
Ltd. on Jan. 31, 2024, passed a resolution to voluntarily wind up
the company's operations.
The company's liquidator is:
Cosimo Borrelli
Jason Aleksander Kardachi
Kroll Pte Limited
10 Collyer Quay
#05-04/05 Ocean Financial Centre
Singapore 049315
NSTA INVESTMENT: Creditors' Proofs of Debt Due on March 11
----------------------------------------------------------
Creditors of NSTA Investment Pte. Ltd. are required to file their
proofs of debt by March 11, 2024, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Jan. 31, 2024.
The company's liquidators are:
Chan Kwang Cheng
Tee Lian Choy
105 Cecil Street
#15-02 The Octagon
Singapore 069534
OCEAN PACIFIC: Creditors' Meeting Set for Feb. 27
-------------------------------------------------
Ocean Pacific Management Pte. Ltd. will hold a meeting for its
creditors on Feb. 27, 2024, at 3:00 p.m. via electronic means.
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 a Liquidator;
c. to appoint a Committee of Inspection if deemed necessary;
and
d. Any other business.
SHANGHAI CHONG: Winds Up Amid MOM Probe for Salary Arrears
----------------------------------------------------------
TODAY reports that construction firm Shanghai Chong Kee Furniture
and Construction, which made the news in October 2022 after migrant
workers protested in Ang Mo Kio about salary arrears, has gone into
liquidation.
A gazette notification on Jan. 29 this year said that joint
liquidators have been appointed to wind up the affairs of Shanghai
Chong Kee following an extraordinary general meeting held on Jan.
18, TODAY relates.
According to TODAY, the company's winding up comes amid a probe by
the Ministry of Manpower (MOM) for salary offences under the
Employment Act following the October 2022 protest.
While the firm had settled a portion of the payments for the 268
workers owed salaries as of Oct. 31 that year, MOM said it was
working with the firm on a payment schedule in instalments for the
remainder.
It added that investigations into Shanghai Chong Kee and
sub-contractor Zhengda Corporation for salary offences under the
Employment Act are ongoing.
In a joint response to TODAY, MOM and the Tripartite Alliance for
Dispute Management (TADM) said that workers with outstanding salary
arrears will have their claims filed with the appointed liquidator
with the assistance of TADM.
TODAY has asked MOM and TADM how much is owed to the migrant
workers.
MOM and TADM added that they had assisted all the company's migrant
workers since the protest and that they are working to facilitate
goodwill payments following the winding up, TODAY relates.
The quantum of these goodwill payments was not specified.
According to TODAY, TADM said that it has also worked with security
bond insurers to provide payments of over SGD300,000 to the workers
affected by the closure of the company.
MOM said that since the October 2022 protest, it has regularly
engaged the affected workers on their well-being through the
Assurance, Care and Engagement Group, a division established in
2020 to support migrant workers.
On-site engagements were carried out at the dormitories to assess
the well-being of the workers and address any issues faced,
including employment issues such as helping them find alternative
employment opportunities, health concerns and financial hardships.
Shanghai Chong Kee Furniture & Construction Pte Ltd's line of
business includes the construction of nonresidential buildings.
*********
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 2024. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
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*** End of Transmission ***