/raid1/www/Hosts/bankrupt/TCRAP_Public/240404.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, April 4, 2024, Vol. 27, No. 69
Headlines
A U S T R A L I A
ARMAGUARD: Banks Prepare as Company Rejects AUD26 Million Bailout
FIVE STAR 2022-1: Fitch Hikes Rating on Class E Notes to 'BB+sf'
FREEDOM AG: First Creditors' Meeting Set for April 10
GLOBAL ADVANCE: First Creditors' Meeting Set for April 10
ITP MUSIC: Sydney Music Festival Collapses Into Liquidation
LVX GLOBAL: Enters Into Administration, 25 Jobs on the Brink
NATIONAL COSTING: First Creditors' Meeting Set for April 12
PROJECT COORDINATION: Administrators Give Update at First Meeting
RESPONSIBLE ENTITY: First Creditors' Meeting Set for April 9
TRUSTED MECHANIC: First Creditors' Meeting Set for April 9
C H I N A
LONGFOR GROUP: Fitch Lowers LongTerm Foreign Currency IDR to 'BB+'
SHENZHEN ROYOLE: Facing Involuntary Bankruptcy Petition
URUMQI GAOXIN: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable
[*] Developers' Shares Suspended in HK for Missing Results Deadline
I N D I A
ACTIVE TOOLS: CRISIL Lowers Rating on INR16cr Debt to B
AIRCRAFT EMPLOYEES: CRISIL Keeps B Ratings in Not Cooperating
BHARATH LAJHNA: CRISIL Lowers Corporate Credit Rating to D
BUSETTY RAMAMUNAIAH: CRISIL Assigns B+ Rating to INR20cr Loan
DALAL REALITIES: CRISIL Keeps C Debt Rating in Not Cooperating
DAYAL COTSPIN: CRISIL Moves D Debt Ratings to Not Cooperating
ENALTEC LABS: CRISIL Moves D Debt Ratings to Not Cooperating
GOLDEN FALCON: CRISIL Withdraws B Rating on INR20.5cr Debt
GURUKRUPA TRAVEL: CRISIL Moves D Debt Ratings to Not Cooperating
JAYALAKSHMI SPINTEX: CRISIL Withdraws B+ Rating on INR15.6cr Loan
JMJ FINANCE: CRISIL Keeps B+ Debt Rating in Not Cooperating
NANDU CHEMICALS: CRISIL Keeps B Debt Ratings in Not Cooperating
OMKARA VIJAYALAKSHMI: CRISIL Withdraws B+ Rating on INR15cr Loan
PARAMSHAKTI STEELS: ICRA Keeps D Debt Ratings in Not Cooperating
POLARIS LIQUOR: ICRA Keeps B+ Debt Rating in Not Cooperating
R.S. PROFILLING: CRISIL Moves B+ Debt Ratings to Not Cooperating
RUBY BUILDERS: CRISIL Lowers Long/Short Term Debt Ratings to D
SALASAR AGRO: CRISIL Moves D Debt Ratings to Not Cooperating
SHIV SHAKTI: ICRA Keeps D Debt Rating in Not Cooperating Category
SN ENVIRO: CRISIL Moves D Debt Ratings to Not Cooperating
SPACETECH EQUIPMENTS: ICRA Keeps D Ratings in Not Cooperating
STAR YARN: CRISIL Reaffirms B+ Rating on INR20cr Cash Loan
SUNTANA TEXTILE: ICRA Keeps D Debt Ratings in Not Cooperating
SUPER CROP: CRISIL Moves D Debt Rating to Not Cooperating
VETHESTA CONSTRUCTIONS: CRISIL Keeps B+ Rating in Not Cooperating
I N D O N E S I A
MASKAPAI REASURANSI: Fitch Affirms BB+ Insurer Fin. Strength Rating
N E W Z E A L A N D
A 2 Z NZ: Court to Hear Wind-Up Petition on May 3
CLOUDY BAY: PricewaterhouseCoopers Appointed as Receivers
EPA LIMITED: Blacklock Rose Appointed as Receivers and Managers
LAAIM PRINT: Court to Hear Wind-Up Petition on April 18
RAROA PROJECT: Court to Hear Wind-Up Petition on April 24
STARJAM: Faces Closure Due to 'Short-Term Cash Flow Problem'
P A K I S T A N
PAKISTAN INT'L AIRLINES: Gov't. Seeks Stake Sale in Flag Carrier
S I N G A P O R E
BULLION HARVEST: Creditors' Meetings Set for April 19
CENTRALITY PLATFORM: Creditors' Proofs of Debt Due on April 29
GREATEARTH CONSTRUCTION: Creditors' Meetings Set for April 18
ONE MORE: Court Enters Wind-Up Order
RAYSDATA GROUP: Court Enters Wind-Up Order
- - - - -
=================
A U S T R A L I A
=================
ARMAGUARD: Banks Prepare as Company Rejects AUD26 Million Bailout
-----------------------------------------------------------------
SmartCompany reports that retailers and banks are preparing
contingency measures in case Armaguard collapses after the money
transporter rejected a AUD26 million bailout from the nation's
biggest cash users.
According to SmartCompany, the competition watchdog has approved an
application led by the Australian Banking Association to allow a
consortium of cash users to begin talks on measures in case of
Armaguard's failure.
SmartCompany relates that the interim authorisation allows the
groups to "discuss, share information, reach agreement on and/or
implement business continuity measures" in the event of the "exit
of Armaguard's cash-in-transit services".
Among those involved in the discussions include the Reserve Bank,
Royal Australia Mint, Australia Post, key retailers, supermarkets,
government departments, and Armaguard itself.
Armaguard previously rejected a AUD26 million deal from the
Australian Banking Association, the big four banks, Woolworths,
Coles and Australia Post despite being told the company was not
financially viable, according to SmartCompany.
Instead, its parent company Linfox, owned by billionaire Lindsay
Fox, announced it would pump AUD10 million into the business as
Armaguard works to find solutions to its financial woes.
While those discussions are permitted, the Australian Competition
and Consumer Commission (ACCC) has imposed conditions including a
monthly report on the discussions and any developments and
decisions made, SmartCompany relays.
In granting the interim authorisation, the ACCC said it considered
the banking sector had a key role in addressing concerns about the
ongoing sustainability of cash-in-transit services.
"The development and implementation of business continuity measures
is likely to assist in minimising the impacts of any disruption to
cash-in-transit services and access to cash, should the need
arise," the regulator said.
"The ACCC has been particularly cognisant of the importance of
maintaining access to cash in regional and remote areas, many of
which do not have access to cash banking services and rely on other
means for accessing cash."
According to SmartCompany, Armaguard Group chief executive Mick
Cronin said the company was continuing to work constructively with
its customers including retail, banking and other key stakeholders
regarding both short-term and long-term financial solutions for the
industry to remain sustainable.
Concerns over the company's future prompted Coles to stop cash
deliveries to its stores until April 5, but the supermarket later
reversed the decision.
It also reduced the amount of cash customers may withdraw in shops
from AUD400 to AUD200, but there are no plans to unwind the
change.
Armaguard Group provides secure currency supply chain and
technology solutions across Australia, New Zealand and Southeast
Asia.
FIVE STAR 2022-1: Fitch Hikes Rating on Class E Notes to 'BB+sf'
----------------------------------------------------------------
Fitch Ratings has upgraded four note classes and affirmed another
eight from two Five Star transactions. The transactions are backed
by pools of first-ranking Australian residential full-documentation
mortgage loans. All mortgages were originated by Victorian Mortgage
Group (VMG) and the notes were issued by Perpetual Trustee Company
Limited in its capacity as trustee of the series.
The upgrades to Five Star 2021-1 Trust's class C, D and E notes and
Five Star 2022-1 Trust's class E notes are due to a build-up of
credit enhancement (CE) that more than offset the impact of
increased arrears on the Fitch-calculated foreclosure frequency of
the transactions.
Entity/Debt Rating Prior
----------- ------ -----
Five Star 2022-1 Trust
A1 AU3FN0073383 LT AAAsf Affirmed AAAsf
A2 AU3FN0073391 LT AAAsf Affirmed AAAsf
B AU3FN0073409 LT AAsf Affirmed AAsf
C AU3FN0073417 LT Asf Affirmed Asf
D AU3FN0073425 LT BBBsf Affirmed BBBsf
E AU3FN0073433 LT BB+sf Upgrade BBsf
Five Star 2021-1 Trust
A1 AU3FN0063822 LT AAAsf Affirmed AAAsf
A2 AU3FN0063830 LT AAAsf Affirmed AAAsf
B AU3FN0063848 LT AAAsf Affirmed AAAsf
C AU3FN0063855 LT AAAsf Upgrade AA+sf
D AU3FN0063863 LT AA+sf Upgrade AAsf
E AU3FN0063871 LT A+sf Upgrade A-sf
KEY RATING DRIVERS
Credit Enhancement Buffers Expected Losses: The transactions' 30+
day arrears as of end-February 2024 were 10.5% and 3.4% for Five
Star 2021-1 Trust and Five Star 2022-1 Trust, respectively. Five
Star 2021-1 Trust's 30+ day arrears were above the 4Q23 Dinkum
Non-Conforming RMBS Index of 3.7% whilst Five Star 2022-1 Trust's
was below. Both transactions' 90+ day arrears were above the 4Q23
Dinkum Non-Conforming RMBS Index of 1.7%. The transactions' higher
90+ day arrears than the index can be attributed to rising cost of
living and the cash rate rising by 425bp from May 2022 to November
2023, which has impacted borrowers' ability to service repayments.
While the balance of loans in arrears has decreased since the last
rating action in both transactions, the growing arrears in
percentage terms are also influenced by their pool factors of 32.4%
and 58.1%, respectively. Historically, the transactions had strong
loss performance with nil losses recorded to-date. Loans in
hardship are included in the arrears figures.
The 'AAAsf' weighted-average foreclosure frequency (WAFF) for Five
Star 2021-1 is 22.2%, driven by the WA current unindexed
loan-to-value ratio (LVR) of 58.2% and, under Fitch's
classification, nonconforming loans of 22.9% of the pool. The
'AAAsf' WA recovery rate (WARR) of 71.2% is driven by the
portfolio's WA indexed scheduled LVR of 50.4%. The transaction has
been paying down sequentially for the last six consecutive months
due to its 90+ day arrears breaching the stepdown pro rata
condition. This is deemed to be credit positive given the notes
have accumulated CE and the arrears have not translated into
losses.
The 'AAAsf' WAFF for Five Star 2022-1 is 20.8%, driven by the WA
current unindexed LVR of 67.6% and, under Fitch's classification,
nonconforming loans forming 8.6% of the pool. The 'AAAsf' WARR of
52.4% is driven by the portfolio's WA indexed scheduled LVR of
71.3%. The transaction is currently paying sequentially and
accumulating CE, and will convert to pro rata payment, expected to
be in June 2024 unless performance triggers are breached. Once
paying pro rata, the transaction has the ability to revert back to
sequential paydown if performance deteriorates or the transaction
reaches the clean-up call date.
Liquidity Risk Mitigated: Fitch-calculated payment interruption
risk is mitigated by a liquidity facility sized at 2.0% of the
outstanding invested note balance for both transactions. Other
structural features include a pre-call retention amount that
applies excess available income to repay note principal in reverse
sequential order from the class E notes and a post-call
amortisation amount that diverts excess available income, net of
tax, to repay note principal sequentially. The retention amounts
equate to AUD0.62 million for Five Star 2021-1 Trust and AUD0.60
million for Five Star 2022-1 Trust at end-February 2024.
Five Star 2022-1 Trust also benefits from its class F1 and F2 notes
not amortising during the pro rata period due to its pro rata
paydown share being reallocated in reverse sequential order from
the class E note. The notes in both transactions can withstand all
relevant Fitch stresses applied in its cash-flow analysis at their
current rating levels. Class C and D in Five Star 2022-1 were
constrained from further upgrades by the large obligor
concentrations tests.
Low Servicing Risk: VMG is a non-bank financial institution
headquartered in Melbourne, Victoria with a history dating back to
1946. Fitch undertook an operational review and found that the
operations of the servicer were comparable with market standards.
Tight Labour Market Supports Outlook: Portfolio performance is
supported by Australia's continued economic growth and tight labour
market, despite rapid interest rate hikes during 2022-2023. GDP
growth in 2023 was 1.5% and unemployment was 3.7% in February 2024.
Fitch expects economic conditions to stabalise in 2024, with a
slight deceleration in GDP growth to 1.4% and an increase in
unemployment to 4.2%. This reflects Fitch's anticipated effects of
China's property downturn and the ongoing impact of monetary
tightening on consumer spending.
VMG is headquartered in the state of Victoria and the mortgage
portfolio is concentrated in the state. The ratings and Stable
Outlook on the notes are supported by Victoria's forecast of growth
in real gross state product for the fiscal year ending 30 June 2024
of 1.5% and unemployment of 4.3%.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Transaction performance may be affected by a deterioration in
macroeconomic fundamentals and consumers' financial position in
Australia beyond Fitch's expectations, where available CE cannot
compensate for higher credit losses.
Downgrade Sensitivity
Unanticipated increases in the frequency of defaults and loss
severity on defaulted receivables could produce loss levels higher
than Fitch's base case and are likely to result in a decline in CE
and remaining loss-coverage levels available to the notes.
Decreased CE may make certain note ratings susceptible to negative
rating action, depending on the extent of the coverage decline.
Hence, Fitch conducts sensitivity analysis by stressing a
transaction's initial base-case assumptions. The rating sensitivity
section provides insight into the model-implied sensitivities the
transaction faces when assumptions - weighted-average foreclosure
frequency or weighted-average recovery rate - are modified, while
holding others equal. The modelling process uses the modification
of default and loss assumptions to reflect asset performance in up
and down environments. The results should only be considered as one
potential outcome, as the transaction is exposed to multiple
dynamic risk factors.
Five Star 2021-1 Trust:
Notes: Class A1 / A2 / B / C / D / E
Current rating: AAAsf / AAAsf / AAAsf / AAAsf / AA+sf / A+sf
Increase defaults by 15%: AAAsf / AAAsf / AAAsf / AAAsf / AA+sf /
A+sf
Increase defaults by 30%: AAAsf / AAAsf / AAAsf / AA+sf / AAsf /
A+sf
Reduce recoveries by 15%: AAAsf / AAAsf / AAAsf / AAAsf / AA+sf /
A+sf
Reduce recoveries by 30%: AAAsf / AAAsf / AAAsf / AAAsf / AA+sf /
A+sf
Increase defaults by 15% and reduce recoveries by 15%: AAAsf /
AAAsf / AAAsf / AAAsf / AA+sf / A+sf
Increase defaults by 30% and reduce recoveries by 30%: AAAsf /
AAAsf / AAAsf / AA+sf / AAsf / A+sf
Five Star 2022-1 Trust:
Notes: Class A1 / A2 / B / C / D / E
Current rating: AAAsf / AAAsf / AAsf / Asf / BBBsf / BB+sf
Increase defaults by 15%: AAAsf / AAAsf / AAsf / Asf / BBBsf /
BB+sf
Increase defaults by 30%: AAAsf / AAAsf / AA-sf / Asf / BBBsf /
BBsf
Reduce recoveries by 15%: AAAsf / AAAsf / AA-sf / Asf / BBBsf /
BB+sf
Reduce recoveries by 30%: AAAsf / AAAsf / AA-sf / Asf / BBBsf /
BB+sf
Increase defaults by 15% and reduce recoveries by 15%: AAAsf /
AAAsf / AAsf / Asf / BBBsf / BB+sf
Increase defaults by 30% and reduce recoveries by 30%: AAAsf /
AAAsf / AA-sf / Asf / BBBsf / BBsf
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
An upgrade could result from macroeconomic conditions, loan
performance and credit losses that are better than Fitch's baseline
scenario or sufficient build-up of CE that would fully compensate
for credit losses and cash flow stresses commensurate with higher
rating scenarios, all else being equal.
Upgrade sensitivity is not relevant for the class A1, A2, B and C
notes for Five Star 2021-1 Trust and class A1 and A2 notes for Five
Star 2022-1 Trust as they are rated 'AAAsf', which is the highest
level on Fitch's scale.
The class C and D notes in Five Star 2022-1 are currently
constrained at 'Asf' and 'BBBsf' respectively, due to the large
obligor concentration tests. Prepayments to the loans with the
largest obligor loss exposure, which result in the notes passing
Fitch's concentration test, could lead to positive rating action
for these classes of notes, all else being equal. Sensitivity
stress results for the remaining rated notes are as follows:
Five Star 2021-1 Trust:
Notes: Class D / E
Current rating: AA+sf / A+sf
Reduce defaults by 15% and increase recoveries by 15%: AAAsf /
AA+sf
Five Star 2022-1 Trust:
Notes: Class B / E
Current rating: AAsf / BB+sf
Reduce defaults by 15% and increase recoveries by 15%: AA+sf /
BBBsf
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pools and the transactions. There were no findings that were
material to this analysis. Fitch has not reviewed the results of
any third-party assessment of the asset portfolio information as
part of its ongoing monitoring.
Prior to the transactions closing, Fitch sought to receive a
third-party assessment conducted on the asset portfolio
information, but none was available for Five Star 2021-1 and Five
Star 2022-1.
As part of its ongoing monitoring, Fitch reviewed a small targeted
sample of VMG's origination files and found the information
contained in the reviewed files to be adequately consistent with
the originator's policies and practices and the other information
provided to the agency about the asset portfolios.
Overall, Fitch's assessment of the information relied upon for the
agency's rating analysis, according to its applicable rating
methodologies, indicates that it is adequately reliable.
ESG CONSIDERATIONS
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
FREEDOM AG: First Creditors' Meeting Set for April 10
-----------------------------------------------------
A first meeting of the creditors in the proceedings of Freedom Ag
Pty Ltd will be held on April 10, 2024 at 12:00 p.m. via virtual
means.
Timothy Gumbleton and Andrew Bowcher of RSM Australia were
appointed as administrators of the company on March 28, 2024.
GLOBAL ADVANCE: First Creditors' Meeting Set for April 10
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Global
Advance Production Services Pty Ltd and Streamlined Productions Pty
Ltd will be held on April 10, 2024 at 10:00 a.m. via virtual
facilties.
Said Jahani of Grant Thornton Australia was appointed as
administrator of the company on March 27, 2024.
ITP MUSIC: Sydney Music Festival Collapses Into Liquidation
-----------------------------------------------------------
News.com.au reports that a popular music festival has collapsed
after being unable to pay its debts.
On March 27, the NSW Supreme Court ordered ITP Music Pty Ltd to go
into liquidation, news.com.au discloses.
The business traded under the name NYE In The Park and was behind a
popular end of year celebration that operated in Sydney's CBD.
At its peak, it boasted headline acts in its line up such as Flight
Facilities, Lime Cordiale and Cut Copy.
According to news.com.au, logistics company Kennards Hire took
legal action against NYE In The Park in February over an unpaid
debt of an unspecified amount.
The court appointed Vincent Pirina of insolvency firm Aston Chace
Group as the liquidator, news.com.au discloses.
NYE In The Park appears to have been on its legs for some time,
with no activity on its social media since the 2022/2023 New Year's
Eve.
A CreditorWatch report news.com.au has obtained shows that in
December last year, another creditor, Bingo Commerical, took legal
action against the music company over a AUD14,000 debt.
A spokesman from the liquidators said in a statement that they had
made contact with the company's directors, SmartCompany says.
It was too early in their investigation to determine the assets or
liabilities of the company.
LVX GLOBAL: Enters Into Administration, 25 Jobs on the Brink
------------------------------------------------------------
News.com.au reports that a global company involved in the
construction sector and headquartered in Australia has plunged into
administration.
On March 27, five companies under the banner of LVX Global Group
appointed administrators to drastically turn their fortunes
around.
LVX is an infrastructure engineering business that offers strategy,
engineering and project management in the building sector with its
main offices in Adelaide.
The engineering company claims on its website to have a presence in
more than 20 countries across the world.
Major nationwide projects the company has worked on include
Brisbane Airport and Sydney's Botanical Gardens, and has also
worked with the Sunshine Coast Council on lighting, communications
and electrical services for its Mooloolaba seafront.
LVX continues to trade while administrators seek an urgent buyer
for either the entire business or some of its assets.
The fate of 25 employees hangs in the balance, the report says.
It's a pretty significant fall from grace with news reports last
year indicate the infrastructure business was thinking of launching
itself on the stock exchange in an initial public offering, with an
estimated value of AUD30 million.
Ken Whittingham and Mark Robinson of insolvency firm Fort
Restructuring have been appointed as administrators, news.com.au
discloses.
In a statement to news.com.au, they said LVX has several national
projects underway but "no final decisions" have been made about
whether to stop work on them.
The administrators said they were looking to sell LVX as a "going
concern".
They are also open to a deed of company arrangement, or DOCA, being
put forward, which is where a portion of the debt is paid back and
control is returned to the original company directors.
"Under either scenario we expect that most employees' jobs will be
preserved, and the businesses will continue to trade," the
administrators said.
In July last year, it was reported that LVX was looking to raise up
to AUD5 million in a pre-IPO capital raising, news.com.au recalls.
The raising scheme put the company's value at the time at around
AUD30 million.
The company generated AUD13.3 million in revenue in the 2022
financial year, up from AUD7 million in the previous comparable
period, news.com.au discloses.
It had a forecasted revenue of AUD15 million for the 2023 financial
year, according to an internal presentation last year reported on
in the media.
NATIONAL COSTING: First Creditors' Meeting Set for April 12
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of National
Costing Services Pty Ltd will be held on April 12, 2024 at 10:00
a.m. at the offices of Mcleods Accounting at Level 9, 300 Adelaide
Street in Brisbane.
Bill Karageozis of Mcleods Accounting was appointed as
administrator of the company on March 29, 2024.
PROJECT COORDINATION: Administrators Give Update at First Meeting
-----------------------------------------------------------------
Administrators in control of Project Coordination (Australia) Pty
Ltd, RSM Australia, have updated creditors at the first creditors
meeting.
In a press statement, RSM related that about a quarter of projects
that were at various stages of construction at the time 50-year-old
building company Project Coordination (Australia) Pty Ltd went into
voluntary administration have taken steps to restart operations.
The status of the company's current building projects was among a
range of updates Company Administrator RSM Australia Partner
Jonathon Colbran shared at the first meeting of creditors on April
2, 2024.
More than 70 creditors - predominantly comprised of sub-contractors
and suppliers - who believe they are owed money by the ACT and
NSW-based company attended the meeting online or in-person in
Canberra.
"By their very nature these meetings are tough for everyone
involved," Mr. Colbran said.
Mr. Colbran told creditors the Administrators had secured all
company assets, including bank accounts, project sites and
equipment at the company's Canberra and Wollongong offices, upon
their appointment on March 19, 2024.
"We undertook an immediate review of the projects that were
underway but had ceased immediately prior to our appointment and
contacted project Principals to discuss the status of contracts and
options to recommence construction and re-engage sub-contractors,
where possible,'' he said.
Mr. Colbran said the Administrators had so far received about 200
formal creditor claims valued at more than $25 million.
"The number of creditors and value of claims will continue to
evolve over the course of the administration and as our
reconciliation process continues," he said.
Mr. Colbran said Project Coordination Company Directors had been
assisting the Administrators by providing access to company
systems, records and accounts and supporting their liaison with
project Principals and sub-contractors to help get projects
restarted as quickly as possible.
"This is a complex administration based on the size of the company,
its operational footprint across two states, and its current
project contractual arrangements. Our priority is to recover and
preserve company assets and maximise their value, for the ultimate
benefit of creditors. This takes time," he said.
"We will update creditors in due course regarding the proposed way
forward regarding a possible extension of the administration.''
Project Coordination is the latest in a series of high-profile
company insolvencies RSM Australia Partners, including Mr Colbran,
have been appointed to lead in the ACT, NSW, QLD and VIC, including
the PBS Group, Langford Jones Homes, Pialligo Estate, Cubitt's
Granny Flats and Home Extensions, and several GDK Group companies.
RESPONSIBLE ENTITY: First Creditors' Meeting Set for April 9
------------------------------------------------------------
A first meeting of the creditors in the proceedings of Responsible
Entity Services Limited will be held on April 9, 2024 at 11:30 a.m.
at Level 29, 360 Collins Street in Melbourne and via Microsoft
Teams.
Barry Wight of Cor Cordis was appointed as administrator of the
company on March 26, 2024.
TRUSTED MECHANIC: First Creditors' Meeting Set for April 9
----------------------------------------------------------
A first meeting of the creditors in the proceedings of The Trusted
Mechanic Group Pty Ltd will be held on April 9, 2024 at 11:00 a.m.
via electronic means.
Stephen Dixon and Brett Orzel of Hamilton Murphy Advisory were
appointed as administrators of the company on March 26, 2024.
=========
C H I N A
=========
LONGFOR GROUP: Fitch Lowers LongTerm Foreign Currency IDR to 'BB+'
------------------------------------------------------------------
Fitch Ratings has downgraded Chinese homebuilder Longfor Group
Holdings Limited's Long-Term Foreign-Currency Issuer Default Rating
(IDR), senior unsecured rating and the ratings on its outstanding
senior notes to 'BB+' from 'BBB-'. The Outlook on the IDR is
Negative.
The downgrade reflects the persistent weakness in the company's and
the sector's sales performance, which has further dampened
Longfor's cash generation and reduced its liquidity buffer.
The Negative Outlook captures its view that a sustained sales
recovery and the eventual normalisation of private developers'
funding access remain uncertain.
Longfor's ratings are supported by its strong bank funding access,
backed by its large investment-property (IP) portfolio and rising
recurring income.
KEY RATING DRIVERS
Persistent Sales Weakness: Longfor's sales fell by 55% yoy to
CNY12.8 billion in 2M24 The decline was largely in line with that
of its peers, but weaker than its previous expectation. Fitch has
lowered its full-year contracted sales forecast to a 20% yoy
decline to CNY138 billion, from -5% previously. This implies
monthly sales of CNY12.5 billion for the remainder of the year.
This is in line with the company's average monthly sales in 2H23
and factors in further supportive policies by the government.
Recent industry data suggest a pickup in homebuying activity in
March, but a sustained stabilisation in sales remains uncertain.
Further sales weakness may limit Longfor's cash generation,
reducing its liquidity buffer.
Secured Borrowings Supported by Policy: Longfor has increased its
IP-backed secured bank borrowings in recent months following
government policy changes permitting more flexible use of IP loan
proceeds, including repaying capital-market debt, and relaxation of
the loan-to-value (LTV) limit to 70% from 50%. Fitch estimates
Longfor has obtained more than CNY18 billion in IP loans, including
more than CNY12 billion to top up existing loans to higher LTVs,
since the policy change was announced in January 2024.
The company estimates its total IP loan capacity has increased to
above CNY100 billion, with CNY47 billion drawn as of end-2023.
Fitch expects Longfor to obtain around CNY20 billion in new IP
loans in 2024 (CNY17.4 billion in 2023), followed by around CNY10
billion per year in 2025-2026 from upcoming mall completions.
Curtailed Capital-Market Access: Fitch believes the normalisation
of Longfor's access to unsecured funding is unlikely in the near
term. Longfor retains the capacity to continue to replace
capital-market maturities with new onshore secured borrowings, but
its funding access is becoming more concentrated and partially
contingent on its retail assets' performance. Furthermore, the
ongoing substitution of unsecured borrowings with onshore secured
lending will reduce the size of its unencumbered asset pool and may
lead to subordination risk for its offshore unsecured securities.
Significant Maturities in 2025: Longfor faces CNY11.7 billion in
bond maturities in 2024, of which CNY5.7 billion have been repaid
in 1Q24, leaving only CNY6 billion outstanding in 2024. This will
be followed by CNY31 billion in bond and syndicated loan maturities
in 2025. Management also expects around CNY10 billion in net
repayment of development loans in 2024. Fitch expects the company
to address these mainly with IP loans, operating cash flow and cash
on hand. However, lower-than-expected sales may jeopardise its
assumptions.
DERIVATION SUMMARY
Longfor's strong funding access, backed by its large IP portfolio
that accounted for 50% of its net property assets as of end-2023,
is a key rating support and a differentiating factor against most
private developer peers.
In comparison, China Vanke Co., Ltd.'s (BB+/Rating Watch Negative)
financial access and flexibility are supported by its state-owned
shareholders and robust banking relationships. The Rating Watch
Negative applied to Vanke's ratings captures the uncertainties
related to the timing and progress of its asset monetisation and
other funding plans.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
- Contracted sales to decline by 20% in 2024 (2M24: -55%)
- Rental income to grow at a 13% CAGR in 2024-2025
- Land acquisition at 20% of contracted sales proceeds in
2024-2025
- Construction costs (including IP capex) of CNY40 billion, or 36%
of contracted sales proceeds, in 2024-2025 (CNY57 billion in 2023)
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade:
The Outlook will be revised to Stable if the negative sensitivities
are not met.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade:
- Evidence of weakening access to onshore bank funding and
liquidity
- Significantly weaker sales than its expectations and/or
underperformance relative to the industry
- Deterioration in the operating performance of its IP business,
including occupancy and rental rates
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity: Longfor had CNY37.6 billion of available cash
(excluding regulated pre-sales funds) as of end-2023, which covered
1.4x of its CNY26.8 billion of short-term debt. Longfor's liquidity
is also supported by its strong access to onshore bank funding and
flexibility to manage operating cash outflows.
ISSUER PROFILE
Longfor is a top-10 property developer in China with nationwide
exposure and CNY170 billion in contracted sales in 2023. The
company also had a CNY200 billion IP portfolio as of end-2023,
which comprises shopping malls and rental housing across China.
ESG CONSIDERATIONS
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Prior
----------- ------ -----
Longfor Group
Holdings Limited LT IDR BB+ Downgrade BBB-
senior
unsecured LT BB+ Downgrade BBB-
SHENZHEN ROYOLE: Facing Involuntary Bankruptcy Petition
-------------------------------------------------------
Caixin Global reports that Shenzhen Royole Technologies Co. Ltd. is
facing possible involuntary bankruptcy more than three years after
it scrapped a plan for an IPO on Shanghai's Nasdaq-like STAR
Market.
The Shenzhen Intermediate People's Court has accepted the
bankruptcy petitions involving Royole and two of its subsidiaries
filed by Zhang Ming, Guo Xiaotao and Wang Jinzhou, respectively,
Caixin discloses citing disclosures published March 22 on the
National Enterprise Bankruptcy Information Disclosure Platform, a
website under the Supreme People's Court.
Shenzhen Royole Technologies Co., Ltd., manufactures and
distributes electronic components. The Company produces fully
flexible displays, fully flexible sensors and other products.
Shenzhen Royole Technologies offers its products for consumer
electronics, automotive, industrial, instrumentation, networking,
and other fields.
URUMQI GAOXIN: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable
---------------------------------------------------------------
Fitch Ratings has affirmed China-based Urumqi Gaoxin Investment and
Development Group Co., Ltd.'s (UGID) Long-Term Foreign- and
Local-Currency Issuer Default Ratings (IDRs) at 'BB+'. The Outlook
is Stable.
Fitch has revised the Standalone Credit Profile (SCP) to 'b', from
'b-', due to the improvement of UGID's liquidity profile.
UGID is a district-level government-related entity (GRE)
responsible for urban infrastructure development in Urumqi
High-tech Industrial Development Zone (New City), the first
national-level high-tech industrial zone in Xinjiang. Its
assessment reflects UGID's policy role as the main platform to
invest in and finance major infrastructure projects to boost the
New City's development.
The New City is designed by the government to attract investments
and companies to Urumqi, with heavy emphasis on the technology
sector. In 2022, it had gross regional product (GRP) of CNY144
billion, representing 37% of the Urumqi Municipality's GRP.
KEY RATING DRIVERS
Support Score Assessment 'Extremely likely'
Fitch views the New City government as extremely likely to extend
extraordinary support to UGID, if needed, reflecting a support
score of 35 (out of a maximum 60) under Fitch's Government-Related
Entities Rating Criteria. This reflects a combination of the
responsibility to support and incentive to support factor
assessments as below.
Responsibility to Support
Decision Making and Oversight 'Very Strong'
The assessment is based on the government' tight control and key
decision-making power over UGID's operating business. UGID remains
100% directly owned by the New City State-owned Assets Supervision
and Administration Commission (New City SASAC). Company directors
and senior management are mainly appointed or nominated by the
district government. The government has power over the UGID's major
decisions, investment plans and debt. The government closely
oversees UGID with frequent reporting on key operating and
financial performance.
Precedents of Support 'Strong'
UGID is the major GRE in New City, in light of its strategic role
in developing the high-tech zone. The company has received
consistent financial support from the government since its
establishment, in form of payments, bonds and operating subsides,
which helps UGID to sustain its operating flexibility and financial
viability. It received special government bond proceeds totalling
of CNY1.1 billion for industrial park construction in 2020. It
received an average of CNY18 million in annual operating subsidies
in the past three years.
Around 35% of UGID's revenue was from the government. Cash payments
for government projects totalled CNY1.2 billion in 2020-2022. In
2023, the payment was CNY830 million, an increase of 53% from
2022.
Incentives to Support
Preservation of Government Policy Role 'Strong'
UGID is the New City government's core platform for providing
public services to the district and enterprises that operate in the
high-tech zone. It is an important local GRE that assists New City
to execute crucial economic plans. The district government places a
high priority on the urban and industrial development of the zone
and UGID's long-term strategy is aligned with the government's
vision for the New City. The company expects to continue to
undertake the financing and construction of the major construction
projects.
A default would cause project delays and disrupt development of
these policy projects in the long run, which could affect the
long-term economic development of New City. The constraint against
a higher assessment is due to the availability of other GREs in the
city to act as substitutes if UGID defaults.
Contagion Risk 'Strong'
Fitch views UGID as a high-profile GRE in the New City. Its major
functional businesses, including infrastructure investment and
industrial park operation, are of high policy intensity. The public
perceives UGID to have close local-government linkages, as the
government has mandated the company to finance and invest in major
projects to support the New City's development.
UGID is the only GRE in the New City that has issued various
onshore and offshore debt instruments. Bonds accounted for 68% of
its total debt at end-2023. It also has good relationships with
banks, including policy and state-owned banks. GREs in the New City
have adequate track records with no evidence of financial tension.
Thus, Fitch believes a default of UGID would be likely to disrupt
access to or cost of financing for the government or its other
GREs.
Standalone Credit Profile
Fitch assesses UGID's SCP at 'b', based on a 'Midrange' risk
profile and 'b' financial profile. The SCP has been revised from
'b-' previously due to an improvement in the liquidity profile, as
the company has the ability to cover its debt maturing in one
year.
Its financial profile assessment is mainly derived from its 'b'
category net leverage ratio (net debt/EBITDA of 21x by 2027 under
Fitch's rating case).
Risk Profile: 'Midrange'
Fitch assesses UGID's risk profile at 'Midrange', reflecting the
combination of assessments: 'Midrange' revenue risk, expenditure
risk, liabilities and liquidity risk.
Revenue Risk: 'Midrange'
Revenue risk is assessed as 'Midrange' based on 'Midrange' demand
characteristics and 'Midrange' pricing characteristics. UGID has
relatively high business concentration in urban development and
industrial park operation with low geographic diversification.
However, this is partly offset by the growth prospects of its
business as the New City develops. UGID's pricing ability remains
at a moderate level, indicated by its positive gross margin.
Expenditure Risk: 'Midrange'
Its expenditure risk assessment is based on 'Midrange' operating
costs, supply risk and investment planning. UGID has
well-identified cost drivers. Most of its operating expenditure is
variable in nature and can be passed through to revenue. The
government sets its investment objectives and it has an adequate
execution record.
Liabilities and Liquidity Risk: 'Midrange'
The overall 'Midrange' assessment is based on 'Midrange' debt
characteristics and 'Midrange' liability characteristics. At
end-2023, total debt remained at CNY18.4 billon, similar to the
level in 2022. UGID's debt is considered to be relatively
concentrated in the short term, with debt maturing within a year
accounting for 36% of total debt and debt maturing in three years
accounting for 92% of total debt at end-2023. The weighted-average
life of debt was 2.5 years. This is mitigated by UGID's good access
to bond markets, sufficient liquidity available for debt service,
and good relationships with major Chinese banks.
The company's liquidity profile improved in 2023 from a year
earlier. The available liquidity (including unrestricted cash and
unutilised bank facilities) at end-2023 could cover all its
short-term debt maturing in 2024.
Financial Profile 'b'
Its financial profile assessment is determined by the primary
metric, a leverage ratio commensurate with a 'b' category
assessment. Its rating case forecasts UGID's leverage ratio to stay
at around 20x till 2027, mainly reflecting increasing debt to
invest in infrastructure projects as the New City expands.
Fitch also considers the liquidity coverage ratio as the secondary
metric. The ratio was at 1.1x, in line with a 'bb' category
assessment at end-2023.
Derivation Summary
Fitch assesses UGID's ratings under Fitch's Government-Related
Entities Rating Criteria, reflecting its assessment of the New City
government's decision making, oversight, support precedents to the
company as well as government's incentives to support. Fitch also
factors in the important policy role of UGID as a key urban
developer in the New City. The ratings also consider the SCP
assessment of 'b' under its Public Policy Revenue-Supported
Entities Rating Criteria.
Issuer Profile
UGID is the largest urban developer in the New City in the Xinjiang
Uyghur Autonomous Region in north-west China. As the major policy
GRE under the New City government, UGID is commissioned to engage
in infrastructure construction and industrial parks to promote the
development of the New City's high-tech industries. Its total
assets reached CNY35.6 billion at end-3Q23.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- A downward revision in Fitch's assessment of the ability of the
New City government to provide subsidies, grants or other
legitimate resources allowed under China's policies and
regulations.
- A significant weakening of the contagion risk of a default, or
deterioration in its assessment of the government's precedents of
support, preservation of UGID's government policy role, or weaker
government control and oversight.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- An improvement in Fitch's assessment of the ability of the New
City government to provide subsidies, grants or other legitimate
resources allowed under China's policies and regulations.
- An improvement in its perception of the government's incentive to
provide support, including stronger implications for the
preservation of UGID's government policy role or contagion risk, or
a more consistent and substantial support track record to maintain
a sufficiently strong financial profile.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Prior
----------- ------ -----
Urumqi Gaoxin Investment
and Development Group
Co., Ltd. LT IDR BB+ Affirmed BB+
LC LT IDR BB+ Affirmed BB+
[*] Developers' Shares Suspended in HK for Missing Results Deadline
-------------------------------------------------------------------
The Wall Street Journal reports that several Chinese developers'
shares have been suspended from trading in Hong Kong starting April
2 due to their failure to meet the deadline for publishing last
year's annual results, another sign of the turmoil in the country's
real-estate sector.
According to the Journal, well-known names like Country Garden
Holdings, Central China Management and Modern Land (China) are
among the companies that failed to meet the Hong Kong stock
exchange's March 31 deadline due to an inability to sort out their
financial and accounting estimates or delays in getting their
accounts audited. Some had auditors being replaced due to
disagreement on fees.
"Due to the continuous volatility of the industry, the operating
environment the group [is] confronting is becoming increasingly
complex," Country Garden, one of China's largest developers, said
last week while seeking a trading suspension, the Journal relays.
Rising global interest rates, a weak domestic economic recovery and
soft consumer sentiment have hurt the businesses of many property
developers, leading to defaults on loan payments and substantial
impairments on their income statements, the Journal notes.
Last month, Country Garden defaulted on an interest payment on a
yuan-denominated bond. The company, which has also defaulted on a
U.S. dollar bond, is fighting a liquidation petition in Hong Kong.
=========
I N D I A
=========
ACTIVE TOOLS: CRISIL Lowers Rating on INR16cr Debt to B
-------------------------------------------------------
CRISIL Ratings has revised the ratings on bank facilities of Active
Tools Private Limited (ATPL) to 'CRISIL B/Stable Issuer Not
Cooperating' from 'CRISIL BB-/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Export Packing 16 CRISIL B/Stable (ISSUER NOT
Credit COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER
NOT COOPERATING')
Long Term Loan 1 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER
NOT COOPERATING')
CRISIL Ratings has been consistently following up with ATPL for
obtaining information through letter and email dated February 15,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of ATPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on ATPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
ATPL Revised to 'CRISIL B/Stable Issuer Not Cooperating' from
'CRISIL BB-/Stable Issuer Not Cooperating'.
ATPL, incorporated in 2004 in Jalandhar (Punjab) and promoted by
Mr. Pritam Singh and his sons, Mr.Narinder Singh, Mr.Rajinder
Singh, and Mr.Gurnam Singh, manufactures hand tools such as
Lhandles, hammers, hacksaws, and vices; and carpentry tools.
AIRCRAFT EMPLOYEES: CRISIL Keeps B Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Aircraft
Employees Credit Cooperative Society Limited (AECCS) continue to be
'CRISIL B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL B/Stable (Issuer Not
Cooperating)
Cash Credit 10 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with AECCS for
obtaining information through letter and email dated February 21,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of AECCS, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AECCS
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
AECCS continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
AECCS was set up in 1954 and is registered under the Karnataka
Societies Registration Act. Only the employees based in the
Bengaluru division of HAL are eligible to become members of AECCS.
The society provides financial assistance for the welfare of its
members by extending personal loans. It also offers facilities for
recreational and cultural activities of employees and their family.
As on December 31, 2017, the society had more than 11,800 members.
Book size was INR38.4 crore as on December 31, 2017, against
INR35.2 crore as on March 31, 2017. The society disbursed INR22.1
crore during the nine months ended December 31, 2017, against
INR34.5 crore made during fiscal 2017.
BHARATH LAJHNA: CRISIL Lowers Corporate Credit Rating to D
----------------------------------------------------------
CRISIL Ratings has downgraded its ratings on the corporate credit
rating of Bharath Lajhna Multi State Housing Co-operative Society
Limited (BLM) to 'CRISIL D/Issuer Not Cooperating' from 'CRISIL
B/Stable Issuer Not Cooperating' as the entity has delayed
servicing its debt obligation, as per publicly available
information.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Corporate Credit - CRISIL D (ISSUER NOT
Rating COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with BLM for
getting information. CRISIL requested cooperation and information
from the issuer through its letters dated February 21, 2024, apart
from telephonic communication. However, the issuer has continued to
be non-cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of BLM, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on BLM
is consistent with 'Assessing Information Adequacy Risk'.
Bharath Lajhna Multi State Housing Co-operative Society Limited
(BLM) is multi state housing co-operative society develops lands
for residential, commercials and other business segments with
operations in 3 states namely Tamilnadu, Kerala and Pondicherry.
The society started its operations in Chennai in February 2006.
Society started its operations with property development for
residential, commercial, retail and hospitality sectors in South
India. This comprise of various aspect of housing development
activities such as land identification and acquisition, project
planning, designing, marketing and execution. At present, the focus
is on the development of residential projects in Chennai and other
key cities of Southern India.
BUSETTY RAMAMUNAIAH: CRISIL Assigns B+ Rating to INR20cr Loan
-------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating to the
long-term bank facilities of Busetty Ramamunaiah Sreeramulu
Jewellers (BRSJ).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL B+/Stable (Assigned)
Mortgage Loan
Facility 20 CRISIL B+/Stable (Assigned)
The rating reflects the modest scale of operations and
susceptibility to volatility in gold prices and geographical
concentration in revenue. These weaknesses are partially offset by
the extensive experience of the partners in retailing gold
jewellery and the sound operating efficiency of the firm.
Analytical approach:
Unsecured loans of INR7.83 crore as on March 31, 2023, extended by
promoters, have been treated as neither debt nor equity as these
funds are low interest bearing and likely to be retained in
business over the medium term.
Key rating drivers & detailed description
Weaknesses:
* Susceptibility of revenue and profitability to intense
competition and volatility in gold prices: Intense competition from
several large and small players in the retail jewellery market
exerts pressure on profitability of players such as BRSJ. The
operating margin also remains susceptible to volatility in gold
prices.
* Geographical concentration in revenue: Although the family has
been engaged in the retail jewellery business for four decades, the
stores are located in Proddatur, Cuddapah district of Andhra
Pradesh (AP). Gold buying is a localised activity and is driven by
the level of economic activity within the region. Geographical
concentration in operations could expose the firm to volatility in
demand because of local factors.
* Modest scale of operations: Operating income of INR36-37 crore,
reported over fiscals 2022 and 2023, indicates the modest scale of
operations amidst intense competition. The firm has generated
revenue of INR44 crore till Feb-2024 and is likely to record
revenue of INR50 crore for full fiscal 2024.
Strength:
* Extensive experience of the partner: The four-decade-long
experience of the partners in the gold jewellery and diamond
industry, their strong understanding of market dynamics and
established relationships with suppliers and customers will
continue to support the business risk profile.
Liquidity: Stretched
Bank limit utilisation averaged around 64.18% for the eight months
ended February 29, 2024. Expected cash accrual of INR80 lakh to
INR1.3 crore will not suffice to cover the term debt obligation of
INR2 crore over the medium term. Promoters have extended unsecured
loans of INR4 crore in fiscal 2024 to cover the mismatch. Current
ratio was healthy at 2.04 times as on March 31, 2023. The partner
are likely to extend support via equity and unsecured loans to
cover the working capital requirement and debt obligation.
Outlook: Stable
CRISIL Ratings believes BRSJ will continue to benefit from its
longstanding relationships with principals and experience of its
management, which should help mitigate inherent risk in the trading
business.
Rating sensitivity factors
Upward factors:
* Sustained revenue growth of 30% over the medium term
* Improvement in net cash accrual to INR2.5-3 crore, aiding
financial risk profile and liquidity
Downward factors:
* Decline in revenue (by more than 10%) or operating margin,
leading to lower net cash accrual
* Stretched working capital cycle marked by increase in gross
current assets
BRSJ, which was set up in 2017, is engaged retailing of gold
jewellery. It has a showroom in Proddatur, Cuddapah district (AP).
Operations are managed by Mr. Busetty Ram Mohan Rao, Mr. Busetty
Rajasekhar, Mr. Busetty Ramesh Kumar, Mr. Busetty Gopinath, Mr.
Busetty Thejonath, Mr. Busetty Manikanta Karthik and Mr. Busetty
Manikanta Kaushik.
DALAL REALITIES: CRISIL Keeps C Debt Rating in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Dalal
Realities (DR) continues to be 'CRISIL C Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft Facility 15 CRISIL C (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with DR for
obtaining information through letter and email dated February 16,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative and the ratings on bank
facilities of DR continues to be 'CRISIL C Issuer Not
Cooperating'.
Earlier, the entity did not provide the No Default Statements (NDS)
for the three consecutive months. Therefore, the issuer was
classified as 'non cooperative' in line with Clause 11. 3 of SEBI
CRA Operational Circular dated July 03, 2023.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of DR, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on DR is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of DR
continues to be 'CRISIL C Issuer Not Cooperating'.
DR was set up as partnership firm in January 2016. It is involved
in real estate development such as construction and sale of
residential complexes and flats across Ahmedabad. The firm is
developing a project in Ahmedabad. Mr. Naresh Patel, Mr. Arvind
Patel, Mr. Bharatkumar Patel, Mr. Chhanalal Patel, Mr. Vijaykumar
Patel are the partners in the firm and has extensive experience of
over a 1 decade in real estate industry.
DAYAL COTSPIN: CRISIL Moves D Debt Ratings to Not Cooperating
-------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of Dayal
Cotspin Limited (DCL) to 'CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 26 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Long Term 2 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
In accordance with the terms of the rating agreement with DCL,
CRISIL Ratings has sent repeated reminders for payment of fees
towards the surveillance exercise through letter and email dated
February 28, 2024 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/ reviewed with
the suffix 'ISSUER NOT COOPERATING'.
On account of lack of management cooperation towards non-payment of
fees, CRISIL Ratings has migrated the rating on bank facilities of
DCL to 'CRISIL D Issuer not cooperating'.
DCL was set up by Mr. Pavan Kumar Bachhuka and his family in 2006.
The company, based in Akola (Maharashtra), is engaged in cotton
ginning.
ENALTEC LABS: CRISIL Moves D Debt Ratings to Not Cooperating
------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of
Enaltec Labs Private Limited (ELPL) to 'CRISIL D/CRISIL D Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Rating - CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Short Term Rating - CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with ELPL for
obtaining information through letter and email dated February 28,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of ELPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on ELPL
is consistent with 'Assessing Information Adequacy Risk'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL Ratings has migrated the rating on
bank facilities of ELPL to 'CRISIL D/CRISIL D Issuer not
cooperating'.
ELPL was incorporated in 2006 and is promoted by Mr. Anand Shah and
Mr. Susheel Koul. The company manufactures bulk drugs and
undertakes research and development on API for domestic and global
clients. It has manufacturing units at Ambernath, Maharashtra and
Pithampur, Madhya Pradesh.
GOLDEN FALCON: CRISIL Withdraws B Rating on INR20.5cr Debt
----------------------------------------------------------
CRISIL Ratings has withdrawn its rating on the bank facilities of
Golden Falcon Industries Limited (GFIL) on the request of the
company and after receiving no objection certificate from the bank.
The rating action is in-line with CRISIL Rating's policy on
withdrawal of its rating on bank loan facilities.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Drop Line 19.5 CRISIL B/Stable/Issuer Not
Overdraft Facility Cooperating (Withdrawn)
Drop Line 20.5 CRISIL B/Stable/Issuer Not
Overdraft Facility Cooperating (Withdrawn)
CRISIL Ratings has been consistently following up with GFIL for
obtaining information through letters and emails dated January 28,
2023 and March 13, 2023 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of GFIL. This restricts CRISIL
Ratings' ability to take a forward looking view on the credit
quality of the entity. CRISIL Ratings believes that rating action
on GFIL is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, CRISIL Ratings has
Continued the ratings on the bank facilities of GFIL to 'CRISIL
B/Stable Issuer not cooperating'.
GFIL, incorporated in 1994, owns a commercial complex in New Delhi
that is leased to DHL and IIL. The company's operations are managed
by Mr. Rajesh Bhasin.
GURUKRUPA TRAVEL: CRISIL Moves D Debt Ratings to Not Cooperating
----------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of
Gurukrupa Travel Agency (GTA) to 'CRISIL D/CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.7 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Cash Credit 0.45 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Fund- 9.34 CRISIL D (ISSUER NOT
Based Bank Limits COOPERATING; Rating Migrated)
Term Loan 8.51 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
In accordance with the terms of the rating agreement with GTA,
CRISIL Ratings has sent repeated reminders for payment of fees
towards the surveillance exercise through letter and email dated
February 23, 2024 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/ reviewed with
the suffix 'ISSUER NOT COOPERATING'.
On account of lack of management cooperation towards non-payment of
fees, CRISIL Ratings has migrated the rating on bank facilities of
GTA to 'CRISIL D/CRISIL D Issuer not cooperating'.
GTA was established in November 2020 in Mehsana, Gujarat, as a
partnership firm of Mr. Brijesh Indrajit Barot and Mr. Girish
Bhailalbhai Brahmbhatt. The firm offers cabs on rent for tours and
other allied services.
JAYALAKSHMI SPINTEX: CRISIL Withdraws B+ Rating on INR15.6cr Loan
-----------------------------------------------------------------
CRISIL Ratings has withdrawn its rating on the bank facilities of
Jayalakshmi Spintex (India) Private Limited (JSPL) on the request
of the company and after receiving no objection certificate from
the bank. The rating action is in-line with CRISIL Rating's policy
on withdrawal of its rating on bank loan facilities.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 15.63 CRISIL B+/Stable/Issuer
Bank Loan Facility Not Cooperating (Withdrawn)
Term Loan 5.20 CRISIL B+/Stable/Issuer
Not Cooperating (Withdrawn)
Term Loan 4.17 CRISIL B+/Stable/Issuer
Not Cooperating (Withdrawn)
CRISIL Ratings has been consistently following up with JSPL for
obtaining information through letter and email dated March 19, 2024
among others, apart from telephonic communication. However, the
issuer has remained non cooperative and the ratings on bank
facilities of JSPL continues to be 'CRISIL B+/Stable Issuer not
cooperating'.
The entity did not provide the No Default Statements (NDS) for the
last three months. Therefore, the issuer is being classified as
'non cooperative' in line with Clause 11. 3 of SEBI Master circular
dated July 3, 2023.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of JSPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on JSPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
JSPL continues to be 'CRISIL B+/Stable Issuer not cooperating'.
JSPL was incorporated in 1995. JSPL is engaged in manufacturing
cotton yarn. JSPL manufacturing facility is in Coimbatore, Tamil
Nadu with an installed capacity of 25,000 spindles. JSPL's day to
day operations are run by N. Sivakumar.
JMJ FINANCE: CRISIL Keeps B+ Debt Rating in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of JMJ Finance
Limited (JMJ Finance) continues to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 10 CRISIL B+/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with JMJ Finance
for obtaining information through letter and email dated February
21, 2024 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of JMJ Finance, which restricts
CRISIL Ratings' ability to take a forward looking view on the
entity's credit quality. CRISIL Ratings believes that rating action
on JMJ Finance is consistent with 'Assessing Information Adequacy
Risk'. Based on the last available information, the ratings on bank
facilities of JMJ Finance continues to be 'CRISIL B+/Stable Issuer
Not Cooperating'.
Incorporated in 1996, JMJ Finance is the flagship company of the
JMJ group based in Thrissur, Kerala. Mr. Joju M J, the promoter of
the company, is the chairman and managing director. JMJ Finance is
a non-deposit taking NBFC and provides finance for gold loans and
term loans. The company has a network of 50 branches in seven
districts of Kerala, Tamil Nadu and Karnataka.
NANDU CHEMICALS: CRISIL Keeps B Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the rating on the bank facilities of Nandu
Chemicals Private Limited (NCPL) continues to be 'CRISIL B/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3.30 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Cash 1.96 CRISIL B/Stable (Issuer Not
Credit Limit Cooperating)
Term Loan 5.98 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with NCPL for
obtaining information through letters and emails dated January 5,
2024 among others, apart from telephonic communication. However,
the issuer has remained non-cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'Issuer Not Cooperating' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company.' Such
non-cooperation by a rated entity may be a result of deterioration
in its credit risk profile. These ratings with 'Issuer Not
Cooperating' suffix lack a forward-looking component.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of NCPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on NCPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on the bank facilities
of NCPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
NCPL, based in Hubballi (Karnataka), was incorporated by Mr.
Ramanandan Hegde in 1986. It manufactures active pharmaceutical
ingredients (APIs), which find application in medicine, food and
beverage, confectionery, and laboratory chemical segments.
Installed capacity is 18 tonne per day
Status of non cooperation with previous CRA
NCPL has not cooperated with Brickwork Ratings which has
classified it as non-cooperative vide release dated 13th March
2018. The reason provided by Brickwork Ratings is non-furnishing of
information for monitoring of ratings
OMKARA VIJAYALAKSHMI: CRISIL Withdraws B+ Rating on INR15cr Loan
----------------------------------------------------------------
CRISIL Ratings has withdrawn its rating on the bank facilities of
Omkara Vijayalakshmi Strips Private Limited (OVSPL) on the request
of the company and after receiving no objection certificate from
the bank. The rating action is in-line with CRISIL Rating's policy
on withdrawal of its rating on bank loan facilities.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 15 CRISIL B+/Stable/Issuer Not
Cooperating (Withdrawn)
Proposed Fund- 3 CRISIL B+/Stable/Issuer Not
Based Bank Limits Cooperating (Withdrawn)
Term Loan 2 CRISIL B+/Stable/Issuer Not
Cooperating (Withdrawn)
CRISIL Ratings has been consistently following up with OVSPL for
obtaining information through letter and email dated March 15, 2024
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of OVSPL. This restricts CRISIL
Ratings' ability to take a forward looking view on the credit
quality of the entity. CRISIL Ratings believes that rating action
on OVSPL is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, CRISIL Ratings has
Continued the ratings on the bank facilities of OVSPL to 'CRISIL
B+/Stable Issuer not cooperating'.
OMSPL was incorporated in 2017. It has recently set up steel pipe,
galvanized pipes, PPGL roofing sheet manufacturing unit at
Vijayawada-Andhra Pradesh. OMSPL has started its commercial
operation from May 2021 and promoted by Mr. Bhanu Prasad Kota and
family members.
PARAMSHAKTI STEELS: ICRA Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
ICRA has kept the long-term and short-term rating of Paramshakti
Steels Limited (PSL) in the 'Issuer Not Cooperating' category. The
ratings are denoted as [ICRA]D/[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 40.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term– 2.22 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Long Term- 75.00 [ICRA]D; ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain under
'Issuer Not Cooperating'
Category
Short-term 95.00 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Rating continues to remain under
Others 'Issuer Not Cooperating'
Category
Short Term- 165.00 [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 PSL, 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.
Established in 2005, PSL is engaged in processing and trading of
hot rolled (HR) coils. The promoters of PSL have been in theiron
and steel trading business for almost 40 years through a company
namely Gupta Steel Corporation (not operational now) before
starting PSL.
POLARIS LIQUOR: ICRA Keeps B+ Debt Rating in Not Cooperating
------------------------------------------------------------
ICRA has kept the Long-Term rating for the Bank facilities of
Polaris Liquor Private Limited (PLPL) in the 'Issuer Not
Cooperating' category. The rating is denoted as
"[ICRA]B+(Stable);ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 32.50 [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 PLPL, 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.
Polaris Liquor Private Limited (PLPL) is a part of the N. R. group
of companies promoted by Mr. Neeraj Rawal and it is engaged in
distributorship of IMFL & Beer especially of UB Group in
Maharashtra & Andhra Pradesh. PLPL is engaged in distributorship of
the brands of United Breweries Limited (UBL) and United Spirits
Limited (USL). Barring 3 brands viz. Signature, DSP Blue &
Antiquity, PLPL has distributorship rights for all the brands of
UBL and USL in specified areas of Pune. The company also sells
imported wine, Beer and Liquor among others. PLPL was also a Sole
Selling Agent (Baramati) earlier and had distribution rights to
entire Maharashtra except Mumbai, though this business has been
discontinued since beginning of FY14.
R.S. PROFILLING: CRISIL Moves B+ Debt Ratings to Not Cooperating
----------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of R.S.
Profilling Private Limited (RSPPL, part of R.S. group) to 'CRISIL
B+/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 21 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Long Term 0.01 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
Working Capital 2.1 CRISIL B+/Stable (ISSUER NOT
Term Loan COOPERATING; Rating Migrated)
Working Capital 4.19 CRISIL B+/Stable (ISSUER NOT
Term Loan COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with RSPPL for
obtaining information through letter and email dated March 8, 2024
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of RSPPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RSPPL
is consistent with 'Assessing Information Adequacy Risk'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL Ratings has migrated the rating on
bank facilities of RSPPL to 'CRISIL B+/Stable Issuer not
cooperating'.
CRISIL Ratings has combined business and financial risk profile of
RSPPL and its wholly owned subsidiaries Norplex Oak India Ltd
(NOIL), Maple Circuits Ltd (MCL) referred as R.S. group.
About the Group
RSPPL was incorporated in July 2013. RSPPL is engaged in
manufacturing of wide range of pre-engineered building products
such as color coated coils & sheets, panel profile sheets, roofing
sheets colored, steel roof trusses and steel girder bridges. RSPPL
manufacturing facility is located in Srinagar, Jammu & Kashmir.
RSPPL is owned & managed by Mr. Dawood Ahmad, Ms. Jameela Ahmad
and Mr. Najam who have a rich industrial experience.
Norplex Oak India Ltd: Acquired in current financial year from PCBL
Ltd. as wholly owned subsidiary of RSPPL to carry on business of
manufacturing of Copper Clad sheets. Current company doesn't have
any operations.
Maple Circuits Ltd: Acquired in current financial year from PCBL
Ltd. as wholly owned subsidiary of RSPPL to carry on business of
manufacturing of circuit board. Current company doesn't have any
operations.
RUBY BUILDERS: CRISIL Lowers Long/Short Term Debt Ratings to D
--------------------------------------------------------------
CRISIL Ratings has downgraded the rating on the bank facilities of
Ruby Builders and Promoters (RBP) to 'CRISIL D/CRISIL D Issuer Not
Cooperating' from 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'due to delay in debt servicing debt obligation.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Rating - CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING)
Short Term Rating - CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL A4 ISSUER NOT
COOPERATING)
CRISIL Ratings has been consistently following up with RBP for
obtaining information through letters and emails dated September
11, 2023 and March 26, 2024, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such
non-co-operation by a rated entity may be a result of deterioration
in its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of RBP, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on NIPL
is consistent with 'Assessing Information Adequacy Risk'.
Set up in 1994 by Mr. R Manoharan, RBP is a partnership firm
engaged in development of residential real estate projects in
Chennai.
Status of non cooperation with previous CRA:
RBP has not cooperated with CARE Ratings Limited, which led to its
classification as 'issuer not cooperative' vide release dated March
15, 2023 and March 18, 2024. The reason provided by CARE is
non-furnishing of information for monitoring of ratings.
SALASAR AGRO: CRISIL Moves D Debt Ratings to Not Cooperating
------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of Shri
Salasar Agro Processors (SSAP) to 'CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 27.5 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Term Loan 12.5 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
In accordance with the terms of the rating agreement with SSAP,
CRISIL Ratings has sent repeated reminders for payment of fees
towards the surveillance exercise through letter and email dated
February 28, 2024 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/ reviewed with
the suffix 'ISSUER NOT COOPERATING'.
On account of lack of management cooperation towards non-payment of
fees, CRISIL Ratings has migrated the rating on bank facilities of
SSAP to 'CRISIL D Issuer not cooperating'.
SSAP was established as a partnership firm in 2013 by Mr. Tulsi Ram
Aswani and Mr. Vinay Vyas. The firm manufactures soybean oil and
deoiled cake at its facilities in Nagpur, Maharashtra.
SHIV SHAKTI: ICRA Keeps D Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
ICRA has kept the long-term rating of Shiv Shakti Enterprise in the
'Issuer Not Cooperating' category. The rating is denoted as
[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 10.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Shiv Shakti Enterprise, 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.
Established as a partnership firm in February 2014, Shiv Shakti
Enterprise commenced the development of its first residential real
estate project viz. Siddhi Vinayak Heights in April 2014. The
project is one with 152 two BHK flats, with saleable area in the
range of 1138sq.ft to 1186sq.ft. Located in the Pal-Adajan area of
Surat, the management is targeting the people employed in
companies located in the Hazira industrial belt as prospective
buyers. The management had rescheduled the project completion from
September 2016 to July 2017.
SN ENVIRO: CRISIL Moves D Debt Ratings to Not Cooperating
---------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of SN
Enviro - Tech Private Limited (SNETPL) to 'CRISIL D/CRISIL D Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 65 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Cash Credit 4.5 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Long Term 15.5 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with SNETPL for
obtaining information through letter and email dated March 8, 2024
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SNETPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
SNETPL is consistent with 'Assessing Information Adequacy Risk'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL Ratings has migrated the rating on
bank facilities of SNETPL to 'CRISIL D/CRISIL D Issuer not
cooperating'.
Incorporated in 2005, SNETPL is promoted by the late Mr. Samarendra
Nath Nandy, and is currently managed by his son, Mr. Abhishek
Nandy, Ms Sonali Nandy and a team of professionals. The Delhi-based
company undertakes engineering, procurement and construction of
water and sewage treatment plants, and industrial effluents
treatment plants.
SPACETECH EQUIPMENTS: ICRA Keeps D Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has kept the long-term and short-term rating of Spacetech
Equipments & Structurals Private Limited (SESPL) in the 'Issuer Not
Cooperating' category. The ratings are denoted as [ICRA]D/[ICRA]D;
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 1.75 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Short-term 4.20 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Rating continues to remain under
Others 'Issuer Not Cooperating'
Category
Long-term/ 0.05 [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 SESPL, 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.
Established in 1982, SESPL is involved in the fabrication of
pressure vessels, with its facility at Ambernath in Thane district
of Maharashtra. SESPL's fabrication facility is ISO 9001-2000
certified, and the pressure vessels manufactured by the company
find application mainly in the steel, oil and gas, power and
engineering sectors.
STAR YARN: CRISIL Reaffirms B+ Rating on INR20cr Cash Loan
----------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable' rating on the
long-term bank facilities of Star Yarn (SY).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 20 CRISIL B+/Stable (Reaffirmed)
Term Loan 13 CRISIL B+/Stable (Reaffirmed)
The rating continues to reflect the intensely competitive and
highly fragmented textile industry, Susceptibility of operating
margin to volatility in raw material prices and its leveraged
capital structure. These weaknesses are partially offset by the
proprietor's extensive experience in the cotton yarn trading
industry.
Key Rating Drivers & Detailed Description
Weaknesses:
* Intensely competitive and highly fragmented textile industry: The
textile industry in the region is highly fragmented with
established as well as small players, which has increased
competition affecting margins.
* Susceptibility of operating margin to volatility in raw material
prices: SYL's operating profitability has remained volatile over
the last three years at 1.31% ending fiscal 2023. Cotton prices
have been highly volatile in the past. Revenue and profitability is
expected to remain susceptible to intense competition and
volatility in the price of the raw material over the medium term.
* Leveraged capital structure: SY has a leverage financial risk
profile with high gearing of 5.93 times and Total outside
Liabilities /Tangible Net Worth is of 8.36 times It is expected to
be remains leverage over the medium term. Debt protection metrics
is moderate with interest coverage of 2.43 times in the fiscal
2023. It is expected it will remain at a similar level over the
medium term.
Strength:
* Extensive industry experience of the promoters: The firm benefits
from its promoters' extensive experience in the textile industry
with established relationships among group firms. The family own
business consists of entities which are mainly into manufacture and
trading of cotton yarn.
Liquidity: Stretched
Average Bank limit utilization is 88% in the past 12 months ended
in January 2024. Expected net cash accrual of over INR5 crore which
is sufficient against the RO of INR4 crore over the medium term.
The current ratio is 1.64 times as on 31st March 2023.
Outlook: Stable
CRISIL Ratings believes that SY will benefit over the medium term
from its promoter extensive industry experience.
Rating Sensitivity factors
Upward Factors:
* Significant growth in revenue while maintaining EBITDA margins at
more than 3.5%.
* Efficient working capital management and maintenance of moderate
capital structure.
Downward Factors:
* Major decline in revenues or operating margin falling below 3%.
* Stretch in the working capital cycle or any larger than expected,
debt-funded capital expenditure that weakens the company's capital
structure
SY was established in 2017 it's a part of sudhan Group, it's
currently engaged in trading of yarn. Further, SY is currently
setting up an air jet weaving facility. The same is expected to be
commissioned in April '24.
SY is owned & managed by Mr. A.G Manoj Prabhakar and Mr. A.C.
Hariharan Sudhan.
SUNTANA TEXTILE: ICRA Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has kept the long-term and short-term rating of Suntana
Textile Mills Private Limited in the 'Issuer Not Cooperating'
category. The ratings are denoted as [ICRA]D/[ICRA]D; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term/ 12.95 [ICRA]D/[ICRA]D; ISSUER NOT
Short Term COOPERATING; Rating Continues to
Fund Based/ remain under 'Issuer Not
Cash Credit Cooperating' Category
Long-term/ (12.95) [ICRA]D/[ICRA]D; ISSUER NOT
Short Term COOPERATING; Rating Continues to
Interchangeable remain under 'Issuer Not
Cooperating' Category
As part of its process and in accordance with its rating agreement
with Suntana Textile Mills 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.
Suntana Textile Mills Private Limited came into existence in 2006
with the merger of 'Sunil Textile Industries' and 'Sushil Textile
Industries', which were incorporated in 1979 and 1985,
respectively, as the proprietorship concerns of Mr. Chirnajilal
Agarwal and Mrs. Bharti Agarwal. Sunil Textile Industry and Sushil
Textile Industry were engaged in manufacturing grey cloth. However,
since 1995, both firms gradually ceased their in-house fabric
manufacturing operations and commenced manufacturing fabrics for
formal suiting's by assigning job-works to various companies in
Bhilwara (Rajasthan) and Bhiwandi (Maharashtra). Mr. Sunil Agarwal,
Mr. Chiranjilal Agrawal, and MrsBharti Agrawal, are the directors
of the company handling its overall operations. The company's
administrative office and factory are located at Bhiwandi in
Maharashtra.
SUPER CROP: CRISIL Moves D Debt Rating to Not Cooperating
---------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of Super
Crop Safe Limited (SCSL) to 'CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
In accordance with the terms of the rating agreement with SCSL,
CRISIL Ratings has sent repeated reminders for payment of fees
towards the surveillance exercise through letter and email dated
February 23, 2024 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/ reviewed with
the suffix 'ISSUER NOT COOPERATING'.
On account of lack of management cooperation towards non-payment of
fees, CRISIL Ratings has migrated the rating on bank facilities of
SCSL to 'CRISIL D Issuer not cooperating'.
Incorporated in 1987, SCSL is engaged in the business of
manufacturing agro chemicals which include Insecticides,
Bio-Fertilizers, Weedicides, Fungicides and other chemicals. The
company is promoted by Patel Family and the manufacturing facility
is based out of Ahmedabad, Gujarat. The company was listed on the
Bombay Stock Exchange (BSE) in 1995.
VETHESTA CONSTRUCTIONS: CRISIL Keeps B+ Rating in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Vethesta
Constructions (VC) continue to be 'CRISIL B+/Stable/CRISIL A4
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 7 CRISIL A4 (Issuer Not
Cooperating)
Long Term Loan 1.5 CRISIL B+/Stable (Issuer
Not Cooperating)
Proposed Long Term 5.5 CRISIL B+/Stable (Issuer
Bank Loan Facility Not Cooperating)
Secured Overdraft 4.5 CRISIL B+/Stable (Issuer
Facility Not Cooperating)
Working Capital 1.5 CRISIL B+/Stable (Issuer
Term Loan Not Cooperating)
CRISIL Ratings has been consistently following up with VC for
obtaining information through letter and email dated March 8, 2024
among others, apart from telephonic communication. However, the
issuer has remained non cooperative and the ratings on bank
facilities of VC continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer
Not Cooperating'.
Earlier, the entity did not provide the No Default Statements (NDS)
for the three consecutive months. Therefore, the issuer was
classified as 'non cooperative' in line with Clause 11. 3 of SEBI
CRA Operational Circular dated July 03, 2023.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of VC, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on VC is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of VC
continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'.
Set up in 2003 as a proprietorship concern by Mr. Fayaz Ahmed
Zargar, VC undertakes construction works for roads and bridges,
canals, irrigation and electrification in Jammu and Kashmir.
=================
I N D O N E S I A
=================
MASKAPAI REASURANSI: Fitch Affirms BB+ Insurer Fin. Strength Rating
-------------------------------------------------------------------
Fitch Ratings has affirmed PT Maskapai Reasuransi Indonesia Tbk's
(Marein) Insurer Financial Strength (IFS) Rating at 'BB+'
(Moderately Weak). Fitch Ratings Indonesia has also affirmed
Marein's National IFS Rating of 'AA-(idn)'. The Outlooks are
Stable.
'AA' National IFS Ratings denote a very strong capacity to meet
policyholder obligations relative to all other obligations or
issuers in the same country or monetary union, across all
industries and obligation types.
KEY RATING DRIVERS
Moderate Company Profile: Fitch assesses Marein's company profile
as 'Moderate' due to a 'Moderate' business profile and 'Neutral'
corporate governance. The 'Moderate' business profile is driven by
its substantive domestic franchise, which is balanced by its 'Least
Favourable' operating scale compared with international peers.
Marein is one of the biggest life reinsurers in Indonesia, but its
share of the reinsurance industry's total gross written premiums
(GWP) for life and non-life business was small at 11% at end-2023.
Its ranking also takes into account a risk appetite that is on a
par with the sector and Marein's somewhat diversified business
lines. Therefore, Fitch scores Marein's company profile at 'b+'
under its credit-factor scoring guidelines, in line with the
ranking.
Satisfactory Capital Position: Fitch Ratings assesses Marein's
capitalisation as 'Good'. The risk-based capitalisation (RBC) ratio
was 248% at end-2023 (end-2022: 279%). The company is committed to
keeping the ratio above 200%. Its Fitch Prism Model score remained
'Somewhat Weak', based on its 2023 financials, similar to the 2022
score, due to the high catastrophe risk in Indonesia.
Non-risk-adjusted capital metrics, such as net premiums to capital
and net leverage, compared well against its criteria guidelines for
its rating category. However, the absolute amount of its
capitalisation is small compared with those of some major
reinsurers in APAC and exposes Marein to external shocks.
Improving Underwriting Profit: The company's combined ratio in 2023
was 95% (2022: 97%) with an average of 97% during 2021-2023,
supported by lower net claim and commission ratio. As a result, it
booked a higher return on equity (ROE) of 4% in 2023, from 3% in
2022. Marein also booked higher premium growth of 14% in 2023
(2022: 4%), due mainly to its non-life business.
The company maintains a low-exposure credit insurance business, a
segment that has contributed to rapid growth and weak underwriting
for some Indonesian reinsurers. Its credit insurance was 2% of its
total non-life reinsurance business, while its credit life
insurance comprised around 10% of its total life reinsurance
business in 2023.
Prudent Investment Portfolio: Marein's investment mix is
conservative, with cash and equivalents and fixed-income
instruments accounting for more than 90% of invested assets at
end-2023. Its exposure to risky assets is manageable relative to
equity. Fitch expects the company to maintain its ratio of equity
investments to capital in light of its prudent investment
approach.
Retrocession Mitigates Catastrophe Risk: The company mainly uses
excess-of-loss treaties to reduce catastrophe exposure and monitors
its risk accumulation regularly. The reinsurance recoverable to
capital ratio of 45% in 2023 (2022: 32%) compares well against
Fitch's criteria guidelines for insurers with a 'BB' IFS Rating.
The reinsurer collaborates periodically with external brokers to
conservatively assess its catastrophe exposure through various
modelling tools.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Significant deterioration in operating performance with a
non-life combined ratio consistently higher than 100% and ROE lower
than 2%; weakening capitalisation with the regulatory RBC ratio
below 200% on a sustained basis;
- Material deterioration in the company profile in terms of
marketing franchise and operating scale.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- Maintaining strong profitability, with a non-life combined ratio
consistently below 93% and ROE above 5%;
- Sustained improvement in capitalisation, with its regulatory RBC
ratio consistently above 280%;
- Significant and sustained improvement in the company profile in
terms of operating scale.
ESG CONSIDERATIONS
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Prior
----------- ------ -----
PT Maskapai Reasuransi
Indonesia Tbk LT IFS BB+ Affirmed BB+
Natl LT IFS AA-(idn)Affirmed AA-(idn)
=====================
N E W Z E A L A N D
=====================
A 2 Z NZ: Court to Hear Wind-Up Petition on May 3
-------------------------------------------------
A petition to wind up the operations of A 2 Z NZ Powercom Limited
will be heard before the High Court at Auckland on May 3, 2024, at
10:45 a.m.
Steelcraft Structural Limited filed the petition against the
company on March 11, 2024.
The Petitioner's solicitor is:
Glen Holm-Hansen
Hesketh Henry
Level 14, 188 Quay Street
Auckland 1010
CLOUDY BAY: PricewaterhouseCoopers Appointed as Receivers
---------------------------------------------------------
Richard Nacey and John Fisk of PwC on April 2, 2024, were appointed
as receivers of Cloudy Bay Clams Limited, Cloudy Bay Holdings
Limited, Cloudy Bay Marine Limited and Cloudy Bay Seafood Limited.
The receivers may be reached at:
PricewaterhouseCoopers
PwC Centre
10 Waterloo Quay
PO Box 243
Wellington 6140
EPA LIMITED: Blacklock Rose Appointed as Receivers and Managers
---------------------------------------------------------------
Garry Whimp and Benjamin Francis of Blacklock Rose on March 28,
2024, were appointed as receivers and managers of Epa Limited.
The receivers and managers may be reached at:
Blacklock Rose Limited
PO Box 6709
Auckland 1142
LAAIM PRINT: Court to Hear Wind-Up Petition on April 18
-------------------------------------------------------
A petition to wind up the operations of Laaim Print Limited will be
heard before the High Court at Auckland on April 18, 2024, at 10:45
a.m.
Fujifilm Business Innovation New Zealand Limited filed the petition
against the company on Feb. 22, 2024.
The Petitioner's solicitor is:
Catherine Louise Waugh
c/- Credit Consultants Group NZ Limited
Level 6, 15 Willeston Street
Wellington Central
Wellington 6011
RAROA PROJECT: Court to Hear Wind-Up Petition on April 24
---------------------------------------------------------
A petition to wind up the operations of The Raroa Project Limited
will be heard before the High Court at Auckland on April 24, 2024,
at 10:45 a.m.
Matthew Dion Goodall and Brent Thomas Bellis filed the petition
against the company on March 4, 2024.
The Petitioner's solicitor is:
Anna Barnett
Sainsbury Logan & Williams, Solicitors
61 Tennyson Street
Napier 4110
STARJAM: Faces Closure Due to 'Short-Term Cash Flow Problem'
------------------------------------------------------------
Stuff.co.nz reports that New Zealand's disability not-for-profit
StarJam is facing closure, unless it receives urgent financial
support.
The organisation has been running for 22 years, dedicated to
empowering young people facing challenges due to disability through
music, and dance.
According to Stuff, chief executive Gilli Sinclair said it was in a
critical situation due to increased cost of living, operational
expenses and reduced funding.
Stuff relates that Ms. Sinclair said 75% of its funding came from
grants, but the next funding round was not for a couple of months.
"That isn't necessarily a sustainable strategy," Stuff quotes Ms.
Sinclair as saying. "This is a very temporary, short-term cash
flow problem we're trying to deal with, and we've got really good
medium and long-term strategies after that."
Without donations or alternative funding, StarJam would be forced
to suspend its workshops within two weeks, and its grant funding
was never guaranteed, she said.
Some 800 people attended StarJam workshops regularly, with
waitlists for every one of the 10 locations, and it had launched a
series of online workshops to cater to the waitlists and rural
populations.
It made a huge difference in the lives of its attendees.
"I think it's about finding their tribe.
"So many of our parents talk about the jammers, who are young
people with disabilities, putting their t-shirt on on Monday night,
and then having to have it washed on Tuesday, but then putting it
back on on Wednesday, Thursday, Friday, because it is literally the
highlight of their week."
One in five young New Zealanders had a disability - about 150,000
people.
According to Stuff, the organisation has launched an emergency
appeal, with the goal of raising NZD100,000 to keep its programmes
operational.
"We are calling upon our community, supporters, and allies to stand
with us during this challenging time," Ms. Sinclair said.
People could donate on the StarJam website, Stuff adds.
===============
P A K I S T A N
===============
PAKISTAN INT'L AIRLINES: Gov't. Seeks Stake Sale in Flag Carrier
----------------------------------------------------------------
Reuters reports that Pakistan is putting on the block a stake
ranging from 51% to 100% of loss-making national carrier Pakistan
International Airlines, the privatisation panel said on April 2, as
part of reforms urged by the IMF.
Reuters relates that the disposal of the flag carrier is a step
past elected governments have steered away from as likely to be
highly unpopular, but progress on the privatisation will help
cash-strapped Pakistan pursue further funding talks with the IMF.
In a newspaper advertisement, the panel set a deadline of May 3 to
receive statements of interest in PIA, which has piled up arrears
of hundreds of billions of rupees, and it appointed EY Consulting
as the financial adviser for the deal.
"The restructured PIA is being offered to potential investors in
its 'debt-lite' new structure for a 51%-plus stake," the
Privatisation Commission said in a website presentation, Reuters
relays.
The panel aimed to sign a share price deal by June 24, after
completing all steps in the transaction, it added.
"The restructured PIA provides an opportunity to invest in a
full-service airline."
PIA's 23% share of Pakistan's aviation market is the biggest, and
the airline could grow further to exceed historic levels of 30%,
the panel, as cited by Reuters, said.
With a fleet of 34 aircraft comprising 17 Airbus A320s, 12 Boeing
B777s and 5 ATRs, the airline loses traffic to Middle Eastern
carriers, who have a market share of 60%, because of an absence of
direct flights to destinations.
The carrier has air service pacts with 87 countries, and landing
slots at key destinations such as London Heathrow.
According to Reuters, the re-organisation of the business will
separate the aviation-related aspects from non-core components, so
freeing the operating subsidiary of a large portion of legacy
debt.
The restructuring will move out PKR603 billion ($2.2 billion) of
liabilities, leaving PKR203 billion ($730 million) on the balance
sheet for the acquired business.
The presentation added that PIA broke even at earnings before
interest, taxes, depreciation, amortisation, and restructuring or
rent costs (EBITDAR) level in 2023, which the panel projected to
continue in 2024.
Besides the losses and debt, however, global aviation regulators
have questioned PIA's governance and safety standards for some
years, Reuters says.
In 2020, after a PIA plane crash in Karachi killed nearly 100,
followed by a fake pilot license scandal, the European Union
Aviation Safety Agency (EASA) banned the airline from its most
lucrative routes in Europe and Britain.
Reuters relates that the ban continues, costing the airline annual
revenue of nearly PKR40 billion, the government has told
parliament.
"PIA plans to restore its network, starting routes into the United
Kingdom, Western Europe and the United States," read the investment
presentation.
Reuters adds that the offer of the stake, which carries management
control, follows Pakistan's agreement to fiscal discipline plans
with the International Monetary Fund (IMF), from which it secured a
$3-billion bailout in June.
Pakistan is now looking to start talks with the lender for a
medium-term programme key to shoring up an economy bedevilled by
high inflation, low reserves of foreign exchange and high external
financing needs, Reuters notes.
The IMF wants reforms to State-Owned Enterprises (SOEs) that more
clearly define ownership and government roles.
Pakistan International Airlines Corp Ltd provides commercial air
transportation services. It includes passenger, cargo postal
carriage, engineering, and other services.
=================
S I N G A P O R E
=================
BULLION HARVEST: Creditors' Meetings Set for April 19
-----------------------------------------------------
Bullion Harvest Pte Ltd will hold a meeting for its creditors on
April 19, 2024, at 10:00 a.m. by way of video conferencing via
Zoom.
Agenda of the meeting includes:
a. to consider and if thought fit, to appoint the Interim
Judicial Manager to be chairperson of the meeting;
b. to receive a full statement of the Company’s affairs
together with a list of its creditors and the estimated
amount of their claims;
c. to resolve and vote whether to place the Company under the
judicial management of a judicial manager; and
d. In the event that the requisite statutory majority of
creditors vote to place the Company under the judicial
management of a judicial manager, to confirm the
appointment of Mr Farooq Ahmad Mann as judicial manager.
CENTRALITY PLATFORM: Creditors' Proofs of Debt Due on April 29
--------------------------------------------------------------
Creditors of Centrality Platform Pte. Ltd. are required to file
their proofs of debt by April 29, 2024, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on March 21, 2024.
The company's liquidator is:
Ong Kok Yeong David
c/o Tricor Singapore
9 Raffles Place
#26-01 Republic Plaza
Singapore 048619
GREATEARTH CONSTRUCTION: Creditors' Meetings Set for April 18
-------------------------------------------------------------
Greatearth Construction Pte Ltd and Greatearth Corporation Pte Ltd
will hold a meeting for its creditors on April 18, 2024, at 9:00
a.m. by way of video conference.
Agenda of the meeting includes:
a. to receive an update on the affairs of the Company and
status of winding up;
b. to approve the remuneration and disbursements of the
Liquidators;
c. to approve the remuneration and disbursements of the
solicitors for the Liquidators; and
d. Any other matters.
The company's liquidator is:
Chan Kheng Tek
c/o 7 Straits View
Marina One, East Tower
Level 12
Singapore 018936
ONE MORE: Court Enters Wind-Up Order
------------------------------------
The High Court of Singapore entered an order on March 22, 2024, to
wind up the operations of One More Bread Pte. Ltd.
GC Lease Singapore Pte Ltd filed the petition against the company.
The company's liquidator is:
Tan Eng Soon
7500A Beach Road
#05-303 The Plaza
Singapore 199591
RAYSDATA GROUP: Court Enters Wind-Up Order
------------------------------------------
The High Court of Singapore entered an order on March 22, 2024, to
wind up the operations of Raysdata Group Pte. Ltd.
Capital Square Pte Ltd filed the petition against the company.
The company's liquidators are:
Mr. Don Ho Mun-Tuke
Mr. Ho Chjuen Meng
David Donald
DHA+ PAC
63 Market Street #05-01A
Bank of Singapore Centre
Singapore 048942
*********
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
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000.
*** End of Transmission ***