/raid1/www/Hosts/bankrupt/TCRAP_Public/240429.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Monday, April 29, 2024, Vol. 27, No. 86
Headlines
A U S T R A L I A
APOLLO TRUST 2024-1: S&P Assigns BB(sf) Rating on Cl. E Notes
FONE KING: First Creditors' Meeting Set for May 3
FORGE PIZZERIA: Second Creditors' Meeting Set for May 1
FRENCHIES BRASSERIE: Second Creditors' Meeting Set for May 2
LABOURFORCE IMPEX: Second Creditors' Meeting Set for May 2
MAINSCARF PTY: Goes Into Liquidation; Dozens of Jobs Lost
MELBOURNE REBELS: Administrators Recommend Rescue Deal
REDBACK OPERATIONS: Second Creditors' Meeting Set for May 1
REDZED TRUST 2024-1: Fitch Assigns B+(EXP)sf Rating on Cl. F Notes
WEST COAL: Second Creditors' Meeting Set for May 1
C H I N A
CHINA HONGQIAO: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable
COUNTRY GARDEN: Plans to Present Debt Revamp Plan in Second Half
TAOPING INC: PKF Littlejohn Raises Going Concern Doubt
UXIN LTD: Raises Going Concern Doubt
YUZHOU GROUP: Reduces Headcount of Workers by 39% at End 2023
I N D I A
AKASH AGRO: CARE Keeps C Debt Rating in Not Cooperating Category
APCO AUTOMOBILES: CRISIL Keeps D Debt Rating in Not Cooperating
AUTOCZARS: CARE Keeps C Debt Rating in Not Cooperating Category
DHANALAKSHMI TRADERS: CRISIL Keeps D Ratings in Not Cooperating
DOLLARS GRAND: CRISIL Moves D Debt Rating to Not Cooperating
ESSEL HOMES: Faces Insolvency Proceedings Over Gnex Loan Default
GANPATI RIDHI: CRISIL Keeps D Debt Ratings in Not Cooperating
GLAZE GARMENTS: CARE Keeps D Debt Ratings in Not Cooperating
GO FIRST: Aircraft Lessors Can Take Back Planes, Court Rules
HANUMAN MOSAIC: CRISIL Keeps D Debt Ratings in Not Cooperating
HARSO STEELS: CARE Keeps D Debt Ratings in Not Cooperating
HYQUIP SYSTEMS: CARE Keeps D Debt Ratings in Not Cooperating
HYQUIP TECHNOLOGIES: CARE Keeps D Debt Ratings in Not Cooperating
INDUSTRIES PRIVATE: CRISIL Keeps D Debt Rating in Not Cooperating
LAXMI CONSTRUCTIONS: CRISIL Keeps D Ratings in Not Cooperating
NIRUPAM ASSOCIATES: CARE Keeps C Debt Rating in Not Cooperating
PALAK FERRO: CARE Keeps D Debt Rating in Not Cooperating Category
PIBCO ENTERPRISES: CARE Keeps C Debt Rating in Not Cooperating
RAVINDRA RICE: CARE Keeps D Debt Ratings in Not Cooperating
SELVANAAYAKI TEXTILE: CARE Keeps D Debt Rating in Not Cooperating
SENTHIL FINANCE: Voluntary Liquidation Process Case Summary
SGS MARINE: CARE Keeps D Debt Ratings in Not Cooperating Category
SHIV SHANKAR: CRISIL Keeps D Debt Rating in Not Cooperating
SHRINIVAS ELECTRICALS: CRISIL Keeps D Ratings in Not Cooperating
SOGO COMPUTERS: CRISIL Lowers Rating on INR3cr Cash Loan to D
SOHANAA INTERNATIONAL : Insolvency Resolution Process Case Summary
SOUTHERN POWER: CRISIL Lowers Rating on INR2,540cr Loan to D
STUSER TOOLS: Voluntary Liquidation Process Case Summary
SUBHASH STONE: CRISIL Keeps D Debt Rating in Not Cooperating
SUMAN PHOSPHATES: Insolvency Resolution Process Case Summary
SUPER FINE: CRISIL Keeps D Rating in Not Cooperating Category
TRIKALP LAMINATES: Insolvency Resolution Process Case Summary
UNIQUE AGRO: Insolvency Resolution Process Case Summary
VAIBHU INFRA: CRISIL Withdraws D Rating on INR3cr Cash Loan
VBIS INDIA: Voluntary Liquidation Process Case Summary
VISHWAKARMA COLD: CRISIL Keeps D Debt Rating in Not Cooperating
I N D O N E S I A
ADARO INDONESIA: Moody's Affirms 'Ba1' CFR, Outlook Remains Stable
N E W Z E A L A N D
3370GNR LIMITED: Waterstone Insolvency Appointed as Receivers
AUCKLAND CAR: Court to Hear Wind-Up Petition on May 3
EURO CITY: Creditors' Proofs of Debt Due on June 10
KAHU CONTRACTING: Court to Hear Wind-Up Petition on May 7
SMITH BRAND: Creditors' Proofs of Debt Due on May 20
P A K I S T A N
PAKISTAN: Economic Conditions Show Improvement, Says PM
S I N G A P O R E
CORDLIFE: Auditor to Retire After Issuing Disclaimer of Opinion
EMPIRE BULLION: Court to Hear Wind-Up Petition on May 10
FONTAS PTE: Creditors' Proofs of Debt Due on May 26
JA ENGINEERING: Court to Hear Wind-Up Petition on May 10
RIIA METALS: Court Enters Wind-Up Order
TERAS CONQUEST: Commences Wind-Up Proceedings
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A U S T R A L I A
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APOLLO TRUST 2024-1: S&P Assigns BB(sf) Rating on Cl. E Notes
-------------------------------------------------------------
S&P Global Ratings assigned its ratings to six classes of prime
residential mortgage-backed securities (RMBS) issued by Perpetual
Trustee Co. Ltd. as trustee of APOLLO Series 2024-1 Trust. APOLLO
Series 2024-1 Trust is a securitization of prime residential
mortgage loans originated by Suncorp-Metway Ltd.
The ratings reflect the following factors.
-- S&P believes the credit risk of the underlying collateral
portfolio, including its view that the credit support is sufficient
to withstand the stresses it applies. The credit support for the
rated notes comprises note subordination and lenders' mortgage
insurance cover on 19.99% of the loan portfolio.
-- The various mechanisms to support liquidity within the
transaction, including a liquidity reserve to cover extraordinary
expenses, an excess revenue reserve funded by available spread, the
principal draw function, and a liquidity facility to be provided by
Suncorp equal to 0.8% of the performing mortgage loan balance, are
sufficient under our stress assumptions to ensure timely payment of
interest.
-- A fixed-rate swap provided by Suncorp is available to hedge the
mismatch between receipts from any fixed-rate mortgage loans and
the variable-rate notes.
Ratings Assigned
APOLLO Series 2024-1 Trust
Class A, A$1,150.000 million: AAA (sf)
Class AB, A$50.000 million: AAA (sf)
Class B, A$26.250 million: AA (sf)
Class C, A$11.250 million: A (sf)
Class D, A$4.750 million: BBB (sf)
Class E, A$4.000 million: BB (sf)
Class F, A$3.750 million: Not rated
FONE KING: First Creditors' Meeting Set for May 3
-------------------------------------------------
A first meeting of the creditors in the proceedings of Fone King
Mobile Fone Specialists Pty Ltd will be held on May 3, 2024, at
10:00 a.m. at the offices of O'Brien Palmer, Level 9, 66 Clarence
Street, in Sydney, NSW.
Daniel John Frisken and Nicholas Wollinski of O'Brien Palmer were
appointed as administrators of the company on April 22, 2024.
FORGE PIZZERIA: Second Creditors' Meeting Set for May 1
-------------------------------------------------------
A second meeting of creditors in the proceedings of The Forge
Pizzeria Pty Ltd has been set for May 1, 2024 at 10:30 a.m. via
virtual meeting only.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by April 30, 2024 at 4:00 p.m.
Robyn Erskine and Adrian Hunter of Brooke Bird were appointed as
administrators of the company on March 22, 2024.
FRENCHIES BRASSERIE: Second Creditors' Meeting Set for May 2
------------------------------------------------------------
A second meeting of creditors in the proceedings of Frenchies
Brasserie Noosa Pty Ltd has been set for May 2, 2024 at 12:00 p.m.
at Level 35, One International Towers, 100 Barangaroo Avenue in
Sydney and via video conference or by telephone.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 1, 2024 at 4:00 p.m.
Nicarson Natkunarajah of Roger and Carson was appointed as
administrator of the company on March 28, 2024.
LABOURFORCE IMPEX: Second Creditors' Meeting Set for May 2
----------------------------------------------------------
A second meeting of creditors in the proceedings of Labourforce
Impex Personnel Pty Limited has been set for May 2, 2024 at 3:00
p.m. via Microsoft Teams through the Creditors Portal.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 1, 2024 at 5:00 p.m.
Ian Purchas and Hugh Armenis of SV Partners were appointed as
administrators of the company on May 2, 2024.
MAINSCARF PTY: Goes Into Liquidation; Dozens of Jobs Lost
---------------------------------------------------------
News.com.au reports that a civil construction company has gone
bust, leaving millions in unpaid debts and dozens of workers out of
a job.
Mainscarf, which trades as Hansen Constructions NQ, fell into
voluntary administration on January 3, with administrators David
Stimpson and Michael Brennan of SV Partners appointed to take
control of the North Queensland company.
A report to creditors from April 5 suggests the company's fortunes
started to crumble in 2022, with the company's estimated working
capital ratio falling below one, news.com.au relates.
A working capital ratio of one is considered to be a benchmark
figure for solvency, the report notes.
Through to June 30, 2021, the company's estimated working capital
ratio stood at 1.15, but by the date of administration, according
to liquidators, the ratio had shrunk to 0.45.
"The company had insufficient and deteriorating current assets to
meet its current liabilities from 2022 onwards," the report, as
cited by news.com.au, stated.
Mr Brennan, speaking with NCA NewsWire, said he believed the
company failed because it had taken on contracts it could not
manage.
"Everything fell apart from there," he said.
The April 5 report also notes poor operational management, poor
cost control and delays in construction work caused by poor
weathers as factors in the decline, news.com.au relays.
According to news.com.au, Mr. Brennan said Hansen Constructions
could owe creditors up to AUD21 million.
In January, the company had an employee base of about 70 workers,
Mr. Brennan said, but this fell to 40 by the time the company
ceased trading.
"During our appointment, it became apparent employees were
concerned about their future and were beginning to lose faith the
company would be able to continue trading in the long term," the
April 5 report stated.
"Despite our best efforts, we found it difficult to maintain the
company's core group of experienced employees who were critical to
the business' ability to complete the current contracts.
"As a result, a significant number of staff resigned during the
trade on (period)."
News.com.au relates that Mr. Brennan said the company also owed
superannuation to a number of workers dating back to 2017.
"That's what the company records show us. We've sent that to the
Australian Taxation Office," he said.
Liquidators were appointed on April 15, news.com.au discloses.
Hansen Constructions worked on major projects across North
Queensland, including work on the Townsville Golf Course and the
Elliott Springs residential estate.
MELBOURNE REBELS: Administrators Recommend Rescue Deal
------------------------------------------------------
Reuters reports that administrators for the Melbourne Rebels have
recommended that creditors accept a deal put forward by directors
to save the debt-ridden Super Rugby Pacific team and said the club
may have been trading while insolvent for the last five years.
The Rebels went into voluntary administration in January and while
Rugby Australia (RA) stepped in to prop up the team until the end
of the season the governing body has declined to guarantee its
future beyond 2024.
According to Reuters, Rebels directors have proposed a deed of
company arrangement (DOCA) which would guarantee employees 100% of
their entitlements but leave unsecured creditors with as little as
15 cents to the dollar.
Reuters relates that administrators said the directors' proposal
was preferable to liquidation given that litigation costs could
leave creditors worse off.
"I am of the view that the likely return to creditors under the
proposed deed will provide a materially better outcome for
creditors than a winding up," Reuters quotes administrator Stephen
Longley as saying in his report.
The report detailed the extent of the Rebels' liabilities, with
unsecured creditors and related parties claiming nearly AUD22
million ($14.32 million) out of total claims of more than AUD23
million, Reuters relays.
The unsecured creditors include the Australian Taxation Office,
which is claiming more than AUD11 million, and the Melbourne and
Olympic Parks Trust (AUD1.14 million) which runs the Rebels' home
ground, Melbourne Rectangular Stadium.
Reuters adds that the administrators said the Rebels were
potentially trading while insolvent as far back as Dec. 31, 2018,
and had a history of trading losses exacerbated by the impact of
COVID-19 in 2020 and a reduction in annual distributions from RA.
Liquidation could open up the directors to insolvent trading
claims.
Administrators said they had been advised by directors that they
would "vigorously defend any claim for insolvent trading" brought
against them, Reuters relays.
The deal will be put to creditors at a meeting on May 3, Reuters
notes.
Rugby Australia, which is among the Rebels' creditors, noted the
administrators' report in a statement and said it would confirm its
position on the future of the club after consulting with
stakeholders, according to Reuters.
"Despite multiple requests from RA, the . . . directors have failed
to provide any viable proposal or business plan regarding the
future of the Melbourne Rebels," RA added.
Despite the financial turmoil, the Rebels are enjoying their most
successful season in 14 years of Super Rugby since joining in
2011.
They lie fourth on the table ahead of their on April 26 clash
against the Canterbury Crusaders in Christchurch.
About Melbourne Rebels
The Melbourne Rebels is an Australian professional rugby union team
based in Melbourne.
Martin Ford and Stephen Longley of PricewaterhouseCoopers were
appointed as administrators of Melbourne Rebels Rugby Union Pty Ltd
on Jan. 29, 2024.
REDBACK OPERATIONS: Second Creditors' Meeting Set for May 1
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Redback
Operations Pty Ltd and Redback Technologies Holdings Pty Ltd has
been set for May 1, 2024 at 2:30 p.m. via virtual meeting
technology.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by April 30, 2024 at 4:00 p.m.
Anthony Norman Connelly, William Harris, and Mark Holland of
McGrathNicol were appointed as administrators of the company on
March 8, 2024.
REDZED TRUST 2024-1: Fitch Assigns B+(EXP)sf Rating on Cl. F Notes
------------------------------------------------------------------
Fitch Ratings has assigned expected ratings to RedZed Trust STC
Series 2024-1's mortgage-backed pass-through floating-rate bonds.
The issuance consists of notes backed by a pool of first-ranking
Australian conforming and non-conforming residential full- and
low-documentation mortgage loans as well as small ticket commercial
(STC) loans originated by RedZed Lending Solutions Pty Limited.
The notes will be issued by Perpetual Trustee Company Limited in
its capacity as trustee of RedZed Trust STC Series 2024-1. This is
a separate and distinct series created under a master trust deed.
Entity/Debt Rating
----------- ------
RedZed Trust STC
Series 2024-1
A-1-L LT AAA(EXP)sf Expected Rating
A-1-S LT AAA(EXP)sf Expected Rating
A-2 LT AAA(EXP)sf Expected Rating
B LT AA(EXP)sf Expected Rating
C LT A(EXP)sf Expected Rating
D LT BBB(EXP)sf Expected Rating
E LT BB(EXP)sf Expected Rating
F LT B+(EXP)sf Expected Rating
G1 LT NR(EXP)sf Expected Rating
G2 LT NR(EXP)sf Expected Rating
TRANSACTION SUMMARY
The collateral pool totalled AUD600 million and consisted of 906
obligors with a weighted-average (WA) unindexed current loan/value
ratio (LVR) of 63.8% at the 29 February cut-off date.
KEY RATING DRIVERS
Sufficient Credit Enhancement: The class A-1-S, A-1-L, A-2, B, C,
D, E and F notes benefit from credit enhancement of 25.0%, 25.0%,
15.0%, 9.5%, 6.5%, 4.1%, 2.3% and 1.1%, respectively. The
transaction is backed by residential loans, which form 75.1% of the
pool, and STC loans, which form 24.9%.
The combined 'AAAsf' portfolio loss is 13.2% (residential 7.1% and
STC 31.7%), against 12.8% (residential 8.4% and STC 29.9%) for the
previous RedZed Trust STC Series 2023-1. The decrease in
residential portfolio loss is due to lower WA current and indexed
scheduled LVRs and under Fitch's methodology, a lower proportion of
non-conforming loans. The increase in STC portfolio loss is due to
a higher one-year probability of default (PD) and higher share of
the portfolio being in arrears for 30 or more days.
STC Borrower Credit Risk: For the STC portion of the pool,
historical data analysis was performed to derive a one-year PD
assumption of 1.3%, based on the annual average historical 90 days
past due associated with the underlying portfolio. This is higher
than 1.1% at RedZed STC 2023-1's closing to account for the recent
uptick in STC portfolio arrears.
Fitch added the default probability assumption to its proprietary
Portfolio Credit Model (PCM), which also takes into consideration
other key variables, such as portfolio amortisation profile,
obligor concentration and industry distribution.
Empirical data show that not all loans that become 90 days past due
will end in foreclosure. Fitch has analysed the cure rate for
RedZed's STC portfolio for loans that entered 90 days past due and
concluded that around 50% of these loans were cured. In line with
the SME Balance Sheet Securitisation Rating Criteria, Fitch has
capped the base expected cure rate assumption at 40%, and tiered it
for higher rating scenarios. The cure rates are then applied to the
PD from PCM. The STC portfolio's mean default probability after the
application of cure rate reduces to 17.2%.
STC Recovery Rate Lower than for Residential: For the STC portion
of the pool, Fitch applied collateral haircuts in line with the SME
Balance Sheet Securitisation Rating Criteria. The 'AAAsf' WA
recovery rate (WARR) for the STC portion came to 39.9%, lower than
the 'AAAsf' WARR for the residential portion of 56.2%.
Exposure to Obligor Concentration: Its PCM modelling, which
stresses default probability, correlation and recovery assumptions
for large groups of obligors, found that the pool's largest obligor
and the top-10 obligors account for 2.0% and 15.8%, respectively,
of the STC asset balance.
Limited Liquidity Risk: Fitch's payment interruption risk is
mitigated by a liquidity facility sized at 1.5% of the invested
note balance (excluding class G1 and G2 notes), with a floor of
AUD900,000. Other structural features include a yield enhancement
reserve that traps excess income to cover class A-1-S, A-1-L and
A-2 notes' interest shortfall with a limit of AUD900,000, retention
amounts that redirect excess available income to repay note
principal in reverse sequential order (excluding class G1 and G2
notes) with a limit of AUD500,000, and post call amortisation
amounts that redirect after-tax excess income to repay note
principal through the principal priority of payments waterfall.
Low Operational and Servicing Risk: RedZed, established in 2006, is
an experienced specialist lender for self-employed borrowers. Fitch
undertook an operational review and found that the operations of
the originator and servicer were comparable with the market.
Tight Labour Market to Support 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 3.8% in March 2024.
Fitch expects economic conditions to stabilise in 2024, with a
slight deceleration in GDP growth to 1.4% and an increase in
unemployment to 4.2%. This reflects the expected impact on
Australia's economy from China's property downturn and lagged
effects of tighter monetary policy on consumption.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
A downgrade could stem from portfolio composition migrating towards
STC loans, as the STC loans attract a higher portfolio loss than
residential loans. Portfolio migration may occur if residential
loans were to have a higher prepayment rate, increasing the
concentration of STC loans.
In addition, transaction performance may also be affected by
changes in market conditions and the economic environment.
Unanticipated deterioration in the frequency of defaults and
recoveries could produce loss levels higher than Fitch's base case
and are likely to result in a decline in credit enhancement and
remaining loss-coverage levels available to the notes. Decreased
credit enhancement may make certain note ratings susceptible to
negative rating action, depending on the extent of coverage
decline. Hence, Fitch conducts sensitivity analysis by stressing a
transaction's initial base-case assumptions.
Note: A-1-S/ A-1-L/ A-2/ B/ C/ D/ E/ F
Expected Ratings: AAAsf/ AAAsf/ AAAsf/ AAsf/ Asf/ BBBsf/ BBsf/
B+sf
Increase defaults by 15%: AAAsf/ AA+sf/ AA+sf/ A+sf/ BBB+sf/
BBB-sf/ BBsf/ B+sf
Increase defaults by 30%: AAAsf/ AA+sf/ AA+sf/ A+sf/ BBB+sf/ BB+sf/
BBsf/ B+sf
Reduce recoveries by 15%: AAAsf/ AAAsf/ AA+sf/ A+sf/ BBB+sf/ BB+sf/
B+sf/ B+sf
Reduce recoveries by 30%: AAAsf/ AA+sf/ AA+sf/ A-sf/ BBBsf/ BB+sf/
Bsf/ B-sf
Increase defaults by 15% and reduce recoveries by 15%: AAAsf/
AA+sf/ AA+sf/ Asf/ BBBsf/ BB+sf/ B+sf/ Bsf
Increase defaults by 30% and reduce recoveries by 30%: AAAsf/
AA-sf/ A+sf/ BBBsf/ BB+sf/ B+sf/ less than Bsf/ less than Bsf
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
An upgrade could result from economic conditions, loan performance
and credit losses that are better than Fitch's baseline scenario or
sufficient build-up of credit enhancement that would fully
compensate for credit losses and cash flow stresses commensurate
with higher rating scenarios, all else being equal.
The class A-1-S, A-1-L and A-2 notes' ratings are at the highest
level on Fitch's scale and cannot be upgraded.
Note: B / C / D / E / F
Expected Ratings: AAsf / Asf / BBBsf / BBsf / B+sf
Reduce defaults by 15% and increase recoveries by 15%: AA+sf/ AAsf/
Asf/ BBB+sf/ BBB-sf
CRITERIA VARIATION
The transaction features a threshold rate mechanism. This is a
common feature in Australian RMBS and is therefore contemplated
under the APAC Residential Mortgage Rating Criteria. However, 24.9%
of the pool consisted of STC loans that were analysed under the SME
Balance Sheet Securitisation Rating Criteria, which do not
contemplate the concept of a threshold rate and, instead, WA margin
compression is generally modelled.
Fitch has applied the threshold rate for both the residential and
STC portions of the pool given the similar characteristics between
both loan types and Fitch's view that the servicer will have the
legal ability to increase interest rates to meet required payments.
The similarities include: variable rate loan products, pricing of
loans based on the applicable standard variable rate constructed by
RedZed, which is not linked to any particular index, and RedZed's
contractually documented ability to reprice loans at its
discretion. Fitch has cash flow modelled the threshold rate with a
maximum increase to asset margins of 2.0%, consistent with the APAC
Residential Mortgage Rating Criteria.
The impact of the variation was a one-notch higher assigned rating
for the class A-2, B and C notes.
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
Prior to the transaction closing, Fitch sought to receive a
third-party assessment conducted on the asset portfolio
information, but none was made available for this transaction.
As part of its ongoing monitoring, Fitch conducted a review of a
small targeted sample of the originator's origination files and
found the information contained in the reviewed files to be
adequately consistent with the originator's policies and practices
and the other information provided to the agency about the asset
portfolio.
Overall, and together with any assumptions referred to above,
Fitch's assessment of the information relied upon for the agency's
rating analysis according to its applicable rating methodologies
indicates that it is adequately reliable.
ESG CONSIDERATIONS
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
WEST COAL: Second Creditors' Meeting Set for May 1
--------------------------------------------------
A second meeting of creditors in the proceedings of West Coal
Industrial Pty Ltd has been set for May 1, 2024 at 11:00 a.m. at
Level 8, 32 Turbot Street in Brisbane and via virtual meeting
technology.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by April 30, 2024 at 5:00 p.m.
Nick Combis of Vincents Chartered Accountants was appointed as
administrator of the company on March 17, 2024.
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C H I N A
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CHINA HONGQIAO: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable
----------------------------------------------------------------
Fitch Ratings has affirmed China Hongqiao Group Limited's
(Hongqiao) Long-Term Foreign-Currency Issuer Default Rating (IDR)
and senior unsecured rating at 'BB+'. The Outlook is Stable.
The rating reflects Hongqiao's position as one of the world's
largest aluminium smelters, with a competitive cost position that
is supported by high raw-material self-sufficiency and sustained
low leverage. The Stable Outlook reflects its expectation that
Hongqiao will maintain its strong business and financial profile.
KEY RATING DRIVERS
Improved Margin and Low Leverage: Fitch expects the EBITDA margin
to improve to around 20% in 2024 and remain at a similar level in
the medium term. This is based on its expectation of stable average
selling prices and decreasing raw material costs, such as thermal
coal prices.
Fitch forecasts leverage will continue to trend down in 2024-2026
after incorporating Hongqiao's USD1.8 billion expected investment
in the Sinmandou project, as a result of decent cash generation
during the period. EBITDA margin improved to 19% in 2023, from 16%
in 2022, on lower raw material costs, while EBITDA net leverage
decreased to 1.5x, from 1.7x, due to the margin recovery.
Large Scale, High Self-Sufficiency: Hongqiao's large operating
scale and vertical integration support its market-leading
profitability. It is the world's second-largest primary aluminium
producer with around 6.5 million tonnes of capacity. Hongqiao
accounted for around 15% and 9% of domestic and global primary
aluminum production, respectively, in 2023. In addition, it had
full self-sufficiency in bauxite, over 70% sufficiency in alumina
and over 50% sufficiency in electricity in 2023.
Reliance on Short-Term Debt: Around 75% of Hongqiao's total debt of
CNY70 billion was short term by end-2023, up from 68% at end-2022.
However, this is mitigated by the company's sustained low leverage
and strong free cash flow (FCF) generation backed by high
profitability. In addition, a high portion of its short-term debt
is retained as cash, while the balance is used to fund its working
capital, which is short term in nature.
Hongqiao also continues to selectively issue longer-term debt,
particularly for capex. Access to longer-term financing is enhanced
by its solid banking relationships, with support from minority
shareholder CITIC Group. Management indicated that its preference
for short-term debt is driven by the cost advantage rather than the
unavailability of longer-term funding. Fitch may take a more
negative view of Hongqiao's high reliance on short-term debt if
there is evidence that its ability to issue longer-term debt is
weakened or if its FCF generation falls.
Limited Diversification Mitigated: Hongqiao has limited product,
geographical and customer diversification. However, its
geographical concentration has improved after the relocation of 30%
of its capacity to Yunnan province, with another 15% in the
medium-term pipeline. Over 70% of 2023 revenue came from primary
aluminium, with its five-largest customers and largest customer
accounting for 45% and 34% of revenue, respectively. Nevertheless,
the high product and customer concentration is mitigated by the
product's commoditised nature and diverse, high-quality
end-demand.
Key-Man Risk Moderated: CITIC Group has a 12% shareholding in
Hongqiao and is represented by two board members. It is involved in
Hongqiao's funding decisions and banking and capital-market
relationships. This reduces key man risk arising from the 64% share
ownership by Hongqiao's chairman and family.
DERIVATION SUMMARY
Hongqiao is comparable with its Fitch-rated peers Alcoa Corporation
(BB+/Stable) and Aluminum Corporation of China Limited (Chalco,
A-/Negative).
Hongqiao has a less sophisticated product range than Alcoa, but it
maintains a higher EBITDA margin due to the scale and efficiency of
its core aluminium smelting business. Hongqiao's EBITDA net
leverage is lower than Alcoa's, and Alcoa has better operational
and end-market diversity.
Hongqiao and Chalco have similar aluminium revenue scale. Chalco
has lower profitability and higher leverage, but has better
financial flexibility with higher interest coverage and better
liquidity. Chalco's rating also reflects its government-related
entity status.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
- Total aluminum capacity to remain at 6.5 million tonnes with an
over 90% utilisation rate
- EBITDA margin of around 21% between 2024 and 2027 amid stable
average selling prices and normalising energy costs
- Capex to average around 6% of revenue between 2024 and 2027 for
facility maintenance, technology upgrades and relocation
- Dividend pay-out ratio of around 50% between 2024 and 2027
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- Meaningful improvement in maturity profile and funding sources
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Net debt/EBITDA remaining above 2.0x
- Material increase in reliance on short-term financing
- Sustained negative FCF generation
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity: Fitch calculates Hongqiao had total debt of
CNY70 billion and short-term debt of CNY53 billion at end-2023
(including strategic investments of CNY3.8 billion), of which CNY19
billion was capital-market debt. It had available cash of CNY32
billion, and CNY32 billion in unused bank facilities. These are
uncommitted facilities, but Fitch believes they are adequate as
committed facilities are uncommon in China. Fitch expects Hongqiao
will be able to roll over bank borrowings due to its healthy
banking relationships.
ISSUER PROFILE
Hongqiao, the world's second-largest primary aluminium producer,
currently has around 6.5 million tonnes of smelting capacity,
behind Chalco's 7.4 million tonnes, accounting for around 9% of
global production.
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 Recovery Prior
----------- ------ -------- -----
China Hongqiao
Group Limited LT IDR BB+ Affirmed BB+
senior unsecured LT BB+ Affirmed RR4 BB+
COUNTRY GARDEN: Plans to Present Debt Revamp Plan in Second Half
----------------------------------------------------------------
Reuters reports that Country Garden has told some of its offshore
creditors it plans to present a debt restructuring proposal in the
second half of this year, two sources said, as the embattled
developer scrambles to stave off a liquidation petition.
China's biggest private developer defaulted on its $11 billion
worth of offshore bonds late last year and is facing a liquidation
petition in Hong Kong for non-payment of a $205 million loan. The
first court hearing has been set for May 17, Reuters discloses.
A growing list of Chinese developers has defaulted on their
repayment obligations since the sector slipped into an
unprecedented debt crisis in mid-2021, and a handful have been
ordered to be liquidated by courts so far, Reuters notes.
Reuters recalls that China Evergrande Group was ordered to be
liquidated in late January by a Hong Kong court after it failed to
offer a concrete restructuring plan to creditors more than two
years after defaulting on its offshore debt.
If Country Garden is able to present a debt restructuring proposal
to its offshore creditors and get their approval for implementing
it, it would help the developer push back against the liquidation
petition, Reuters relates.
A liquidation order against Country Garden would worsen the outlook
for China's property sector, which has lurched from one crisis to
another over the last couple of years after a regulatory crackdown
on high leverage among developers.
According to Reuters, Country Garden aimed to present a preliminary
restructuring proposal to an ad hoc group of bondholders as early
as June for negotiation, and publish it to the wider list of
creditors in the third quarter, one of the people said.
The company is conducting due diligence on its business health,
which is required for working on any restructuring proposal.
Country Garden's creditors, including a bank lender group, are now
reviewing data and information provided to them, but formal
negotiations on restructuring terms have not started, said the
sources and two separate sources, who declined to be named because
the conversations were private, Reuters adds.
Country Garden did not comment on the proposal timeline, but said
it was working with the creditor groups and their advisors in a
fair manner, Reuters relates. Together with the key bondholder and
lender groups, it hoped to finish due diligence as soon as possible
and then start discussion on restructuring terms.
Reuters reports that the liquidation petition against Country
Garden ramps up pressure on the developer to come to the
negotiating table for debt restructuring talks, some its offshore
creditors, advisers, and analysts have said.
In liquidation lawsuits involving defaulted companies, a company
needs to convince the court that it was making progress on a debt
restructuring plan which would be supported by and acceptable to
most of its creditors.
In previous cases in Hong Kong, the court has made a number of
adjournments on hearing before a decision was made.
Country Garden has hired Kroll to carry out a liquidation analysis
for the liquidation suit, Reuters reported last month, to assess
potential recovery rates for creditors that they can present in
court.
Its shares in Hong Kong have been suspended since April 2, pending
the publication of the 2023 results, Reuters notes. The firm
delayed results last month saying it needed to collect more
information to make appropriate accounting estimates and
judgements.
Country Garden said last week that it had won bondholders' approval
to further delay payments on three onshore bonds to September, in
order to give it more time to raise funds, Reuters adds.
About Country Garden
Country Garden Services Holdings Co Ltd (HKE:6098) is an investment
holding company, invests, develops, and constructs real estate
properties primarily in Mainland China. The company operates in two
segments, Property Development and Construction. It develops
residential projects, such as townhouses and condominiums; and car
parks and retail shops. The company also develops, operates, and
manages hotels. In addition, it researches and develops robots;
sells electronic hardware and food; and provides interior
decoration, agriculture, landscape design, investment and
management consulting, cultural activity planning, and real estate
consulting services.
As reported in the Troubled Company Reporter-Asia Pacific on Dec.
18, 2023, Fitch Ratings has maintained Country Garden Services
Holdings Company Limited's (CGS) Long-Term Issuer Default Rating
(IDR) of 'BB+' on Rating Watch Negative (RWN). At the same time,
Fitch has withdrawn the rating.
The RWN captures the risk of an erosion in CGS's liquidity and
working capital, as well as any change in its financial policies,
in light of the heightened liquidity pressure at its sister
company, Country Garden Holdings Company Limited (CGH). The 'BB+'
IDR is supported by CGS's leading market position, sustained
operating and free cash flow (FCF) generation from its stable,
asset-light business and robust net cash position.
Fitch has chosen to withdraw CGS' ratings for commercial reasons.
TAOPING INC: PKF Littlejohn Raises Going Concern Doubt
------------------------------------------------------
Taoping, Inc. disclosed in a Form 20-F Report filed with the U.S.
Securities and Exchange Commission for the fiscal year ended
December 31, 2023, that its auditor expressed that there is
substantial doubt about the Company's ability to continue as a
going concern.
London, United Kingdom-based PKF Littlejohn LLP, the Company's
auditor since 2021, issued a "going concern" qualification in its
report dated April 25, 2024, citing that the Company's short-term
bank loans of $8.5 million which are repayable within one year and
the uncertainty about the availability of future financing raise
substantial doubt about the Company's ability to continue as a
going concern.
The Company had short-term bank loans of approximately $8.6 million
as of December 31, 2023, which mature on various dates from July 6,
2024 to October 23, 2024.
The Company incurred a net loss of approximately $9.9 million in
2021, $7.1 million in 2022 and $0.7 million in 2023. As of
December 31, 2023, the Company had $32.8 million in total assets,
$20.1 million in total liabilities, and $12.8 million in total
equity.
A full-text copy of the Company's Form 20-F is available at
https://tinyurl.com/yey8n7xu
About Taoping
Taoping Inc. (f/k/a China Information Technology, Inc.), together
with its subsidiaries, is a provider of cloud-app technologies for
Smart City IoT platforms, digital advertising delivery, and other
internet-based information distribution systems in China. Its
Internet ecosystem enables all participants of the new media
community to efficiently promote branding, disseminate information,
and exchange resources. In addition, the Company provides a broad
portfolio of software and hardware with fully integrated solutions,
including Information Technology infrastructure, Internet-enabled
display technologies, and IoT platforms to customers in government,
education, residential community management, media, transportation,
and other private sectors.
UXIN LTD: Raises Going Concern Doubt
------------------------------------
Uxin Ltd disclosed in its Unaudited Third Quarter of Fiscal Year
2024 Financial Results filed with the U.S. Securities and Exchange
Commission for the third quarter ended December 31, 2023, that
there is substantial doubt about the Company's ability to continue
as a going concern.
According to the Company, as of December 31, 2023, it had cash and
cash equivalents of RMB19.4 million, compared to RMB92.7 million as
of March 31, 2023.
The Company has incurred accumulated and recurring losses from
operations, and cash outflows from operating activities. In
addition, the Company's current liabilities exceeded its current
assets by approximately RMB648.2 million as of December 31, 2023.
The Company's ability to continue as a going concern is dependent
on management's ability to increase sales, achieve higher gross
profit margin and control operating costs and expenses to reduce
the cash that will be used in operating cash flows, and to enter
into financing arrangements, including but not limited to renewal
of the existing borrowings and new debt and equity financings.
There is uncertainty regarding the implementation of these business
and financing plans, which raises substantial doubt about the
Company's ability to continue as a going concern.
For the three months ended December 31, 2023, the Company reported
a net loss attributable to ordinary shareholders of RMB79.3
million, compared to RMB100.8 million for the three months ended
December 31, 2022.
For the nine months ended December 31, 2023, the Company incurred a
net loss attributable to ordinary shareholders of RMB506.8 million,
compared to RMB813 million for the nine months ended December 31,
2022.
As of December 31, 2023, the Company has $327.5 million in total
assets, $340.3 million in total liabilities, $193.08 million in
total mezzanine equity, and $205.8 million in total stockholders'
deficit.
A full-text copy of the Company's report filed on Form 6-K is
available at https://tinyurl.com/mryw6mss
About Uxin
China-based Uxin is a used car retailer, pioneering industry
transformation with advanced production, new retail experiences,
and digital empowerment. The Company offers high-quality and
value-for-money vehicles as well as superior after-sales services
through a reliable, one-stop, and hassle-free transaction
experience.
YUZHOU GROUP: Reduces Headcount of Workers by 39% at End 2023
-------------------------------------------------------------
Nikkei Asia reports that Yuzhou Group Holdings disclosed on April
25 that it had slashed its headcount to 1,211 by the end of last
year, from 1,985 a year earlier, marking a 39% decrease.
The Nikkei relates that the company did not go into details about
the job cuts, but Chairman Guo Yinglan said in the report there was
a need for Yuzhuo to "optimize itself" given the "tough market
environment at present." The company stated that its administrative
expenses dropped by 23.8% year-on-year in 2023, "mainly due to the
decrease in staff costs."
According to the Nikkei, Yuzhou is one of the many Chinese
developers in default. It has failed to pay off $842 million in
interest on its offshore senior notes, while missing the deadline
to redeem $2.09 billion in principal. The company had a total of
CNY38.71 billion ($4.95 billion) worth of bonds outstanding as of
the end of last year, while its cash and cash-equivalent assets
stood far short at CNY3.77 billion, the Nikkei discloses. Last year
it booked a net loss of CNY10.52 billion, marking its second
straight year with more than CNY10 billion in red ink.
The Nikkei adds that Prism Hong Kong and Shanghai, an independent
auditor who signed the financial statement, said there is a
"material uncertainty" over the company's current situation, where
"it may be unable to realize its assets and discharge its
liabilities in the normal course of business."
Yuzhou Group Holdings Company Limited is a property developer that
focuses on residential housing in the Yangtze River Delta and the
West Strait Economic Zone. Established in Xiamen in the mid-1990s,
Yuzhou is one of the city's largest developers. The company moved
its headquarters to Shanghai in 2016.
As reported in the Troubled Company Reporter-Asia Pacific in early
June 2022, Moody's Investors Service has downgraded the corporate
family rating of Yuzhou Group Holdings Company Limited to Ca from
Caa2, and the company's senior unsecured ratings to C from Caa3.
The outlook remains negative.
=========
I N D I A
=========
AKASH AGRO: CARE Keeps C Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Akash Agro
Industries (AAI) continue to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 10.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated January 30,
2023, placed the rating(s) of AAI under the 'issuer
non-cooperating' category as AAI had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. AAI
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated December 26, 2023, January 5, 2024, April 12,
2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
AAI was incorporated in August-2017 by Mrs. Laxmi Devi and Mr.
Mangat Raj. The firm has set up a cotton ginning and pressing
facility in Sirsa, Haryana which commenced operations in January-
2018. The firm is also engaged in the selling of cotton seeds
(Binola), which is a by-product of the ginning process and derived
~30% of the total from this segment in FY18. Group concerns of the
firm include Shiva Trading Firm (STC) engaged in the edible oil
extraction business.
APCO AUTOMOBILES: CRISIL Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Apco
Automobiles Private Limited (AAPL) continues to be 'CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Inventory Funding 3.5 CRISIL D (Issuer Not
Facility Cooperating)
CRISIL Ratings has been consistently following up with AAPL 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 AAPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AAPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
AAPL continues to be 'CRISIL D Issuer Not Cooperating'.
Kozhikode-based AAPL, incorporated in 2007, is an authorised dealer
for Tata Motors Ltd's small commercial vehicles in five districts
of Kerala. The company also sells light and intermediate commercial
vehicles. Mr A P Abdul Kareem and his family are the promoters.
AUTOCZARS: CARE Keeps C Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Autoczars
(A) continue to remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 3.50 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 3.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated January 31,
2023, placed the rating(s) of A under the 'issuer non-cooperating'
category as A had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. A continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
December 17, 2023, December 27, 2023, January 6, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Delhi based Auto Czars was established as a partnership firm in
2008 and is currently being managed by Mr. Amit Jain and Mr. Vishnu
Bhargava. The firm is an authorized distributor of spare parts of
Maruti Suzuki India Limited in West Delhi. The customer base
comprises of authorized service centers and retailers and
workshops. Auto Czars also operates ten retail outlets in and
around West Delhi.
DHANALAKSHMI TRADERS: CRISIL Keeps D Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Sri
Dhanalakshmi Traders (SDT) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2.5 CRISIL D (Issuer Not
Cooperating)
Cash Credit 9.5 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 0.5 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 2.5 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with SDT 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 SDT, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SDT
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SDT continues to be 'CRISIL D Issuer Not Cooperating'.
Established as a partnership firm in 1999 and based in East
Godavari (Andhra Pradesh), SDT is engaged in milling and processing
of paddy into rice, rice bran, broken rice and husk. The day-to-day
operations are managed by Mr. M V Srinivasa Reddy.
DOLLARS GRAND: CRISIL Moves D Debt Rating to Not Cooperating
------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of
Dollars Grand Club Private Limited (DGCPL) to 'CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 15 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with DGCPL 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 DGCPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on DGCPL
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 DGCPL to 'CRISIL D Issuer not cooperating'.
Incorporated in 2017, DGCPL is setting up a hotel in Tirupati,
Andhra Pradesh, under the brand name Dollar Grand Club. The company
is owned and managed by C Divakar Reddy and C Monica Devi.
ESSEL HOMES: Faces Insolvency Proceedings Over Gnex Loan Default
----------------------------------------------------------------
The Times of India reports that the National Company Law Tribunal
(NCLT) has ordered the initiation of insolvency resolution
proceedings against Essel Homes and Primcomm Media Distribution
Ventures after Gnex Realtech defaulted on repayment of loans of
nearly INR261 crore to Indiabulls Housing Finance.
Essel Homes and Primcomm were the co-borrowers, and NCLT has
appointed Ravi Prakash Ganti as the interim resolution professional
(IRP), TOI relates.
Indiabulls had sanctioned a loan of INR190 crore to Gnex in June
2020. To raise the debt, the borrower had pledged the shares of
Essel Homes and Primcomm. Owing to default in repayment of debt,
the loan was classified as an NPA at the end of Sept 2021.
TOI relats that Essel Homes and Primcomm had contested the IBC
action, arguing that the loan had been given to Gnex. They also
argued that there was some delay in repaying the first two
installments, when it came to the interest component. They further
questioned the maintainability of the petition, arguing that there
was some "uncertainty in the alleged claims".
The NCLT bench, however, dismissed the plea and ordered the
initiation of insolvency action, TOI relays.
With the appointment of an IRP, a committee of creditors will be
formed, which will then invite claims from other creditors and will
seek a resolution applicant or a new owner. Once an IRP is
appointed the existing promoters are ousted from the company.
GANPATI RIDHI: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Shree Ganpati
Ridhi Sidhi Agro Industries Private Limited (SGRSAI) continue to be
'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.5 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 7.7 CRISIL D (Issuer Not
Cooperating)
Proposed Cash 2.5 CRISIL D (Issuer Not
Credit Limit Cooperating)
CRISIL Ratings has been consistently following up with SGRSAI 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 SGRSAI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
SGRSAI is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of SGRSAI continues to be 'CRISIL D Issuer Not
Cooperating'.
Incorporated in 2013, SGRSAI mills and processes non-basmati rice
and wheat at its unit at Mau in Uttar Pradesh. It commenced
commercial operations in April 2015. The company is promoted by Mr
Nirmal Gupta and his family members.
GLAZE GARMENTS: CARE Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Glaze
Garments (India) Limited (GGIL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 21.94 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 10.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated February 2,
2023, placed the rating(s) of GGIL under the 'issuer
non-cooperating' category as GGIL had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. GGIL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated December 19, 2023, December 29, 2023, January 8,
2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
GGIL was incorporated in the year 1998 by Mr Anil Kumar Jain. The
company, based in Ludhiana, Punjab, is engaged in the anufacturing
of garments and trading of yarn & fabrics. The products
manufactured by the company include polo shirts, Tshirts, jogging
suits, sweat shirts, thermal wear, sweaters, etc. GGIL belongs to
the Ludhiana based 'Venus group' which is integrated from knitting
to garment manufacturing and consists of other group companies.
GO FIRST: Aircraft Lessors Can Take Back Planes, Court Rules
------------------------------------------------------------
Reuters reports that lessors with aircraft stranded at Indian
airline Go First can take back their planes, a local court ruled on
April 26, nearly a year after the carrier declared bankruptcy.
According to Reuters, foreign lessors have been locked in a legal
tussle to repossess their planes after Go First was granted
bankruptcy protection in May 2023, with the recovery of more than
50 Airbus planes blocked under a law in place at the time.
Dubai Aerospace Enterprise (DAE) Capital, ACG Aircraft Leasing and
other lessors, which were allowed only occasional inspections of
their grounded planes, took the matter to court, Reuters relates.
The Delhi High Court on April 26 directed the aviation regulator to
deregister the aircraft within five working days, Reuters says.
Go First is restrained from "entering, accessing or in any manner
operating or flying any of the aircraft," the court said.
India amended its insolvency law in October to exclude leased
aircraft from assets that can be frozen, aligning the world's third
largest aviation market with global standards, Reuters notes.
Go First has said that agreeing to the lessors' demands could
derail the airline's turnaround process, according to court filings
seen by Reuters in September.
The airline has received bids from budget carrier SpiceJet and
Sharjah-based Sky One Airways, Reuters previously reported.
About Go First
Go First, formerly known as GoAir, was an Indian ultra-low-cost
airline based in Mumbai, Maharashtra. Go First was incorporated in
April 2004 as GoAir and commenced flight operations in November the
following year. Its inaugural flight was from Mumbai to Ahmedabad.
The airline is owned by the Wadia Group.
Go First filed an application for voluntary insolvency resolution
proceedings before National Company Law Tribunal (NCLT) on May 2,
2023.
The company said the filing with the NCLT comes after Pratt &
Whitney, the exclusive engine supplier for the airline's Airbus
A320neo aircraft fleet, refused to comply with an order to release
engines to the airline that would have allowed it return to full
operations.
Go First owes INR6,521 crore to its financial creditors, Bank of
Baroda, IDBI Bank, and Deutsche Bank. The airline has a total
liability of about INR11,463 crore to banks, other creditors,
vendors, and others.
On May 10, 2023, the NCLT accepted Go First's voluntary insolvency
petition. The NCLT bench appointed Abhilash Lal as the interim
resolution professional to look after the affairs of Go First and
also suspended its board as part of the insolvency resolution
process.
HANUMAN MOSAIC: CRISIL Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Shree Hanuman
Mosaic And Marble (SHM) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 0.73 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 0.27 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SHM 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 SHM, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SHM
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SHM continues to be 'CRISIL D Issuer Not Cooperating'.
SHM, formed in 1995 as a proprietorship firm, trades in tiles,
marbles, and sanitary ware. The firm is promoted by Odishabased Ms.
Epari Rekha, and its operations are managed by her husband Mr.
Epari Bhadrachalam, who has experience of over two decades in this
line of business.
HARSO STEELS: CARE Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Harso
Steels Private Limited (HSPL) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 14.82 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 11.18 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated January 30,
2023, placed the rating(s) of HSPL under the 'issuer
non-cooperating' category as HSPL had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. HSPL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated December 26, 2023, January 5, 2024, April 12,
2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Harso Steels Private Limited (HSPL) was incorporated in 1986 and
started its commercial operation in 1993. The company is currently
being managed by Mr. Rakesh Kumar Bansal, Mr. Vikas Bansal and Mr.
Adesh Tyagi. The company is engaged in manufacturing of steel
tubes. PVC pipes, steel structure and bottom lid. The main raw
material is steel which the company procures solely from Steel
Authority of India Limited (SAIL). HSPL sells its products
domestically to wholesalers and construction companies. The company
has an associate concern named Rama Steel Tubes Limited which is
engaged in manufacturing and exporting of steel pipes, steel tubes,
steel pipes fittings, steel tubes fittings, PVC pipes, PVC tubes,
steel pipes etc.
HYQUIP SYSTEMS: CARE Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Hyquip
Systems Limited (HSL) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.68 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 27.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated February 1,
2023, placed the rating(s) of HSL under the 'issuer
non-cooperating' category as HSL had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. HSL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated December 18, 2023, December 28, 2023, January 7,
2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
HSL was incorporated in 1984, and it is the flagship company of the
Hyderabad-based Hyquip group. HSL is primarily engaged in the
designing and manufacturing of material handling system and also
has interests in flow control equipment and industrial automation.
Mr K B K Reddy, the founder promoter of the Hyquip group has well
over three decades of experience in the material handling equipment
industry.
HYQUIP TECHNOLOGIES: CARE Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Hyquip
Technologies Limited (HTL) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 2.14 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 1.30 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated February 2,
2023, placed the rating(s) of HTL under the 'issuer
non-cooperating' category as HTL had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. HTL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated December 19, 2023, December 29, 2023, January 8,
2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The company was incorporated in the year 2003 under the name Hyquip
Exports Limited as a part of the Hyquip group, primarily
established for exporting municipal solid waste management
processing equipments manufactured by the associate concerns. Later
in 2006, the company changed the name of the company to Hyquip
Technologies Limited (HTL). HTL developed clean and green
technologies for recycling of Municipal Solid Waste (MSW),
conversion of MSW into compost, Refused Derived Fuel Facility
(RDF), power from waste and also generation of power from biomass.
INDUSTRIES PRIVATE: CRISIL Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Shrim
Industries Private Limited (SIPL) continues to be 'CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 10.55 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SIPL 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 SIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SIPL continues to be 'CRISIL D Issuer Not Cooperating'.
Incorporated in 2014, SIPL is promoted by Mr Shubham Sharma and Ms
Priti Sharma. The company is setting up a plant in Kotdwar,
Uttarakhand to majorly cultivate and sell white button mushroom. It
has started production of oyster mushroom from September 2017 on a
modest scale. The company is also planning to sell compost and
spawn.
LAXMI CONSTRUCTIONS: CRISIL Keeps D Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Sri Laxmi
Constructions - Hyderabad (SLC) continue to be 'CRISIL D/CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1 CRISIL D (Issuer Not
Cooperating)
Overdraft Facility 4 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 10 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with SLC 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 SLC, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SLC
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SLC continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Established in 2009-10 as a partnership firm, Sri Laxmi
Construction (SLC) is engaged in civil construction activities
primarily in & over-bridges segment. Based in Hyderabad
(Telangana), the firm is promoted and managed by Mr.C Vijay Reddy.
NIRUPAM ASSOCIATES: CARE Keeps C Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Nirupam
Associates (NA) continue to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated February 17,
2023, placed the rating(s) of NA under the 'issuer non-cooperating'
category as NA had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. NA continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
January 3, 2024, January 13, 2024, January 23, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Bhopal (Madhya Pradesh) based NA was formed as a proprietorship
concern by Mr. Ram Babu Singh in 1997 with an objective to develop
real estate projects. NA is the renowned real estate developer in
Bhopal being present in the industry since 1997 and executed
multiple real estate projects in and around Bhopal city. It has
completed its Nirupam Royal Palms (NRP) in Bhopal project with
total 150 bungalows. The firm undertook expansion project of NRP
namely 'Nirupam Royal Palms - I' (NRP-I) and 'Nirupam Royal Palms
– II' (NRP-II). Further, it undertook one commercial project
'Nirupam Yadav Trade Centre' (NYTC) in Sehore (Madhya Pradesh).
PALAK FERRO: CARE Keeps D Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Palak
Ferro Alloys (PFA) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.10 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated January 31,
2023, placed the rating(s) of PFA under the 'issuer
non-cooperating' category as PFA had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. PFA
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated December 17, 2023, December 27, 2023, January 6,
2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Incorporated in 2008, Palak Ferro Alloys (PFA) is promoted by Rahul
Parwani and is currently engaged in manufacturing of ferro alloys
and manganese oxides. PFA products include ferro magnesium,
manganese oxide and di-oxide, silico magnesium, ferro manganese low
carbon.
PIBCO ENTERPRISES: CARE Keeps C Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Pibco
Enterprises Private Limited (PEPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.49 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated February 1,
2023, placed the rating(s) of PEPL under the 'issuer
non-cooperating' category as PEPL had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. PEPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated December 18, 2023, December 28, 2023, January 7,
2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Guwahati, Assam based Pibco Enterprises Private Limited was
established in year 2003 with its registered office located at GS
Road, Christian Bosti, Guwahati. The company is promoted by Mr.
Khokon Ghosh, Mrs. Shahnaz Majid and Mr. Iltaf Hussain Hazarika.
Initially, the company was established as a partnership firm in the
year 1997 under the name "Pibco Enterprises" the company converted
into Private Limited Company from the year 2003. The entity started
its operation from 1988 and managed by two partners namely Mr.
Jitendra Kumar Gupta and Mr. Nanda Kishore Gupta. Currently, the
entity is authorized dealer of Hero MotoCorp Limited and Force
Motors Limited. The company is operating through two showrooms each
for Hero Motocorp Limited and Force Motors Limited providing sales,
services and spare parts (3S Model) along with one workshop for
Hero Motocorp Limited and two workshops of Force Motors Limited.
Currently, the company has 14 sub-dealers spread across Guwahati,
Assam for two-wheelers sales.
RAVINDRA RICE: CARE Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Ravindra
Rice and General Mills (RRGM) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 16.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated February 3,
2023, placed the rating(s) of RRGM under the 'issuer
non-cooperating' category as RRGM had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. RRGM
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated December 20, 2023, December 30, 2023, January 9,
2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Ravindra Rice and General Mills (RRGM) got established in 1998 as a
partnership firm and are currently being managed by Mr. Ravinder
Kumar Girdhar and Mr Sanjeev Kumar Girdhar. RRGM is engaged in the
processing of paddy at its manufacturing facility located at
Fazilka (Punjab). The firm is also engaged in milling for various
government entities like PUNSUP, Pungrain, etc.
SELVANAAYAKI TEXTILE: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Sri
Selvanaayaki Textile (SST) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 21.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated February 10,
2023, placed the rating(s) of SST under the 'issuer
non-cooperating' category as SST had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. SST
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated December 27, 2023, January 6, 2024, January 16,
2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Sri Selvanaayaki Textile (SST) is a proprietorship concern
established in the year 1989 by Mr. R. Palanisamy. The firm is
primarily engaged in the manufacture of grey fabrics. The promoter
is also supported by his wife Mrs. P. Indumathi in handling the
operations. SST procures raw material (cotton) from suppliers
located in India. The firm has sizing units. Each of the units have
an installed capacity of about 7200 kgs of yarn per day. After
sizing of yarn in the firm, the weaving process is outsourced to
job workers in and around Coimbatore. SST also exports its fabrics
to Mali, West Africa.
SENTHIL FINANCE: Voluntary Liquidation Process Case Summary
-----------------------------------------------------------
Debtor: M/s. Senthil Finance Private Limited
45/165-B, West Car Street,
Chidambaram-608001, Tamilnadu
Liquidation Commencement Date: March 27, 2024
Court: National Company Law Tribunal Chennai Bench
Liquidator: Viswanathan Rajagopalan
Plot No. 4, 1/787A, Deivanai Nagar, II Street
Madipakkam, Chennai-600091
Tamil Nadu
Email: Viswanathan.irp@gmail.com
Mobile: 6379252059
Last date for
submission of claims: April 26, 2024
SGS MARINE: CARE Keeps D Debt Ratings in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of SGS Marine
Habitability Private Limited (SMHPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 14.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 6.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated February 2,
2023, placed the rating(s) of SMHPL under the 'issuer
non-cooperating' category as SMHPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. SMHPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated December 19, 2023, December
29, 2023, January 8, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
SGS Marine Habitability Private Limited (SMHPL) was incorporated in
the year 2012 and commercial operations of the company started from
July 2013. SMHPL is promoted by Mr. Ghanshyam Sharma and family
members. The products of the company include doors & hatches and
services like providing modular accommodation which comprise of
supply, installation and commissioning all products, equipment,
machinery, cabins, galley (kitchen), doors, wall and ceiling
paneling, flooring, illumination, working area, dining halls,
messes, recreation spaces among others, for warships under
construction and ships in service for Indian Navy with various
shipyards in India. The company gets the orders through
participating in tenders. The company's register office and
manufacturing unit is located at Visakhapatnam and branches are
located at Cochin (Kerala), Port Blair (Andaman & Nicobar Islands),
Mumbai (Maharashtra) and Karwar (Karnataka).
SHIV SHANKAR: CRISIL Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Shiv Shankar
Rice Mills - Taraori (SSRM) continues to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SSRM 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 SSRM, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SSRM
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SSRM continues to be 'CRISIL D Issuer Not Cooperating'.
Established in 2003, and managed by Mr Anil Gupta and his wife Ms
Savita Gupta, SSRM is a partnership firm engaged in processing and
sale of basmati rice. The firm deals mainly in parboiled basmati
rice and long-grain parboiled basmati rice. It has sorting and
milling capacity of 6 tonne per hour and its plant in Tarori,
Haryana.
SHRINIVAS ELECTRICALS: CRISIL Keeps D Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Shrinivas
Electricals GTD Private Limited (SEGPL) continue to be 'CRISIL
D/CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 1 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 9 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SEGPL 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 SEGPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SEGPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SEGPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Incorporated in 2011 in Nashik as Sairus Infrastructure Pvt Ltd and
renamed in 2013, SEGPL is promoted by Mr. Ganesh Nibe and
undertakes engineering, procurement, and construction (EPC)
contracts primarily for Maharashtra State Electricity Distribution
Company Ltd.
SOGO COMPUTERS: CRISIL Lowers Rating on INR3cr Cash Loan to D
-------------------------------------------------------------
CRISIL Ratings has downgraded its rating on the long-term bank
facilities of Sogo Computers Pvt Ltd (SCPL) to 'CRISIL D' from
'CRISIL BB-/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3 CRISIL D (Downgraded from
'CRISIL BB-/Stable')
Cash Credit 12.5 CRISIL D (Downgraded from
'CRISIL BB-/Stable')
Proposed Term Loan 2.5 CRISIL D (Downgraded from
'CRISIL BB-/Stable')
The downgrade reflects delays in debt servicing on account of weak
liquidity. The company has not disclosed these delays in the
no-default statement it has provided.
The rating also reflects the delay in debt servicing, modest scale
of operations and large working capital requirement of SCPL. These
weaknesses are partly offset by expertise of the promoters.
Key Rating Drivers & Detailed Description
Weaknesses:
* Delay in debt servicing: SCPL has delayed the interest servicing
and repayment of its term loan since December 2023, due to weak
liquidity.
* Modest scale of operations: Intense competition in the IT
hardware trading business may continue to constrain scalability,
pricing power and profitability. Revenue declined to INR61.41 crore
in fiscal 2023, from INR81.14 crore in fiscal 2022. However, the
business remains partially supported by increase in rental income
of IT peripherals.
* Large working capital requirement: The working capital cycle may
remain stretched over the medium term and will be closely
monitored. However, having a diversified clientele and following a
policy of limiting credit exposure to a single customer and
controlled receivables partially safeguard the company from
counterparty credit risk. Gross current assets stood at 162 days as
on March 31, 2023, driven by receivables of 83 days and inventory
of 79 days. Credit of 43 days, extended by suppliers, partly eases
pressure on the working capital cycle.
Strength:
* Extensive experience of promoters: The three-decade-long
experience of the promoters in the IT products distribution
industry, their strong understanding of market dynamics, and
healthy relationships with suppliers and customers should continue
to support the business.
Liquidity: Poor
Bank limit utilisation was high averaging around 98.18% for the 13
months ended March 31, 2024, with instance of over-withdrawal.
Current ratio was moderate, estimated at 1.02 times as on March 31,
2023.
Rating Sensitivity Factors
Upward factors
* Track record of timely servicing of debt for at least three
months
* Significant improvement in liquidity
SCPL was incorporated in 1997, by the directors, Mr Jayamuni Rao
and Ms Mary Rao. The company distributes computers, laptops,
servers, and other peripherals. It further provides IT services
such as annual maintenance and facility management, technical
support, remote infrastructure management and web development.
SOHANAA INTERNATIONAL : Insolvency Resolution Process Case Summary
------------------------------------------------------------------
Debtor: Sohanaa International Private Limited
407, New Delhi House
27, Barakhamba Road
New Delhi-110001, India
Insolvency Commencement Date: April 9, 2024
Estimated date of closure of
insolvency resolution process: October 6, 2024 (180 Days)
Court: National Company Law Tribunal, New Delhi Bench
Insolvency
Professional: Anil Bhatia
S-34, LGF, Greater Kailash-II
New Delhi-110048
Email: anilbhatia815@gmail.com
Email: sohanaa.ibc@gmail.com
Last date for
submission of claims: April 23, 2024
SOUTHERN POWER: CRISIL Lowers Rating on INR2,540cr Loan to D
------------------------------------------------------------
CRISIL Ratings has downgraded its rating on the long-term bank
facilities of Southern Power Distribution Company of Andhra Pradesh
Ltd (APSPDCL) to 'CRISIL D' from 'CRISIL BB-/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 250 CRISIL D (Downgraded from
'CRISIL BB-/Stable')
Cash Credit 300 CRISIL D (Downgraded from
'CRISIL BB-/Stable')
Proposed Long Term 2,540 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL BB-/Stable')
The rating action follows various instances of delays in servicing
its debt obligations by APSPDCL including overdue on working
capital facilities for more than 30 days as of March 2023, as
reported in the annual report of fiscal 2023. The company has not
disclosed these delays in the monthly reporting to CRISIL Ratings
through no-default statement (NDS).
While CRISIL Ratings does not rate the facilities that have been
reported to be defaulted upon as per the annual report, the company
has not shared any information regarding the current position of
delays on its debt facilities. Furthermore, liquidity has been
stretched for the past few years and APSPDCL has high debt
obligation. CRISIL Ratings could not ascertain the current position
of delays or the current liquidity position of the company as these
details were not shared by APSPDCL. However, amid already poor
liquidity profile, there seems to be a high likelihood of default
or near-term default on the facilities rated by CRISIL Ratings and,
therefore, the rating has been downgraded in line with the CRISIL
Ratings approach to recognizing default.
The company has a weak financial risk profile and poor liquidity.
The weaknesses are partially offset by monopoly in the power
distribution business in the designated service area.
Analytical Approach
CRISIL Ratings has assessed APSPDCL at a standalone level.
Key Rating Drivers & Detailed Description
Weaknesses:
* Weak financial risk profile: The financial risk profile of
APSPDCL is constrained by weak debt protection metrics and negative
networth because of past losses. The company reported net loss of
INR2,315 crore in the nine months through December 2023 against
reported net profit of INR1,233 crore in fiscal 2023. The
profitability of the company was impacted by high interest cost
which has approximately doubled from INR1,013 crore in the nine
months through December 2022 to INR1,992 crore in the nine months
through December 2023. Moreover, the company had overdue on working
capital loans of more than 30 days as of March 2023, indicating
stretched liquidity.
* Significant increase in leverage due to high working capital
requirement: The company's working capital requirement was high in
fiscal 2023 as it reduced its payables to 92 days in fiscal 2023
from 289 days in fiscal 2022 after the introduction of the late
payment surcharge (LPS) scheme. The reduction in payables has
resulted in debt increasing from INR19,500 crore in March 2022 to
INR28,383 crore in March 2023. The debt has further increased to
INR33,388 crore in December 2023. Timely support from the state
government will continue to remain a key factor for the company to
repay its debt obligation in a timely manner and will be a key
monitorable.
Strength:
* Monopoly in the power distribution business in the designated
service area: APSPDCL continues to play a critical role in the
development of its service area, which covers a sizeable portion of
industrial and agricultural consumers in Andhra Pradesh. Also,
there is limited threat from the open access system as the open
access charges levied by the distribution company (discom) will
partly compensate for the flight of any industrial consumer. The
company should maintain its monopoly in the long term given that it
is financially unviable for any competitor to duplicate the network
of wires required in the retail power supply business.
Liquidity: Poor
Liquidity is impacted by losses amid high debt servicing
requirement. The company had cash and cash equivalent of INR202
crore as of December 2023. However, the company remains dependent
upon support from the state government in raising funds to support
its poor liquidity profile.
Rating Sensitivity Factors
Upward factors
* Prompt repayment track record of at least 90 days.
* Improvement in working capital cycle.
* Improvement in liquidity profile with better cushion in working
capital limits and adequate funds for incremental business.
APSPDCL is a state-owned power distribution utility. It distributes
and supplies power in five districts of Andhra Pradesh: Nellore,
Anantapur, Kurnool, Kadapa and Chittoor. Effective April 1, 2020,
three central districts of the state, Krishna, Guntur and Prakasam
(which were earlier in the operational area of APSPDCL), were moved
to a new discom, APCPDCL. APSPDCL supplies power to over ~7 million
consumers through a network of 1,461 sub-stations and 7,91,253
distribution transformers, with its service area spread over 80,375
square kilometres.
STUSER TOOLS: Voluntary Liquidation Process Case Summary
--------------------------------------------------------
Debtor: M/s. Stuser Tools Private Limited
112, Aicam Towers
1st Main Road Ambattur Industrial Estate
Ambattur-600058
Liquidation Commencement Date: March 26, 2024
Court: National Company Law Tribunal Chennai Bench
Liquidator: Viswanathan Rajagopalan
Plot No. 4, 1/787A, Deivanai Nagar, II Street,
Madipakkam, Chennai-600091, Tamil Nadu
Email: Viswanathan.irp@gmail.com
Mobile: 6379252059
Last date for
submission of claims: April 25, 2024
SUBHASH STONE: CRISIL Keeps D Debt Rating in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Subhash Stone
Industries Private Limited (SSIPL) continues to be 'CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 9 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SSIPL 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 SSIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SSIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SSIPL continues to be 'CRISIL D Issuer Not Cooperating'.
SSIPL was incorporated in 1995, is engaged in crushing of various
sizes of boulders (large stones), which are picked/extracted from
the riverbed (largely five sizes of boulders namely 10mm, 20mm,
30mm, 40mm and 60mm and dust). Mr Subhash Chand, Mr Suresh Chand
and Mr Ajay Kumar are the promoters of the company.
SUMAN PHOSPHATES: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Suman Phosphates and Chemicals Limited
307-308, Diamond Trade Centre
Plot No.3-4, Diamond Colony
New Palasia, Indore - 452007
Insolvency Commencement Date: April 9, 2024
Court: National Company Law Tribunal, Indore Bench
Insolvency
Professional: Mr. Bishwa Ranjan Chatterjee
68 Pink City
IDA Scheme No. 94 Extn.
Opposite PTS Ring Road
Indore, MP-452001
Indore, Madhya Pradesh, 452001
Email: brcind@gmail.com
Last date for
submission of claims: April 24, 2024
SUPER FINE: CRISIL Keeps D Rating in Not Cooperating Category
-------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Super Fine
Rice Industries (SFRI) continues to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 15 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SFRI 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 SFRI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SFRI
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SFRI continues to be 'CRISIL D Issuer Not Cooperating'.
Established in 1998 as a partnership firm, promoted by Mr Krishan
Kumar and family, SFRI mills basmati rice at its facility in
Faridkot (Punjab). It also engages in opportunistic trading in the
rice industry.
TRIKALP LAMINATES: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Trikalp Laminates Private Limited
House No. 22 1st Floor Block F
Pkt.-22, Sector 3
Rohimi, North West
Delhi, India, 110085
Insolvency Commencement Date: April 9, 2024
Estimated date of closure of
insolvency resolution process: October 6, 2024
Court: National Company Law Tribunal, New Delhi Bench
Insolvency
Professional: Ms. Shalu Khanna
A-16/9, Vasant Vihar
New Delhi-110057, India
Email: skhnna@llca.net
Email: tlipl.rp@llca
Last date for
submission of claims: April 23, 2024
UNIQUE AGRO: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Unique Agro Processors India Limited
Shiv Smruti, K-16 Bharat Nagar
Amravati Road, Nagpur
Maharashtra, India - 440033
Insolvency Commencement Date: March 21, 2024
Estimated date of closure of
insolvency resolution process: November 17, 2024
Court: National Company Law Tribunal, Mumbai Bench
Insolvency
Professional: Mr. Neehal Mahamulal Pathan
Plot No.27, R.S.No.825, Sahjeevan Parisar
Near TPM Church, Behind Circuit House
Kolhapur 416 003 MH
Email: cirp.unique01@gmail.com
Last date for
submission of claims: April 4, 2024
VAIBHU INFRA: CRISIL Withdraws D Rating on INR3cr Cash Loan
-----------------------------------------------------------
CRISIL Ratings has withdrawn its ratings on the bank facilities of
Vaibhu Infra Tech India Private Limited (VITIPL) on the request of
the company and receipt of a no objection certificate from its
bank. The rating action is in line with CRISIL Ratings' policy on
withdrawal of its ratings on bank loans.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 3 CRISIL D/Issuer Not
Cooperating (Withdrawn)
Cash Credit 3 CRISIL D/Issuer Not
Cooperating (Withdrawn)
Long Term Loan 0.5 CRISIL D/Issuer Not
Cooperating (Withdrawn)
CRISIL Ratings has been consistently following up with VITIPL for
obtaining information through letters and emails dated November 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 VITIPL. This restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
VITIPL is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the rating on bank
facilities of VITIPL continues to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
VITIPL was established in 1998 as a proprietorship firm and was
reconstituted as a private limited company in 2010. It is promoted
and managed by Mr. Babji Kollipara. The company provides IT
services and software solutions. It develops and implements
customized software applications/software (primarily for
e-governance), and provides consulting and advisory services.
VBIS INDIA: Voluntary Liquidation Process Case Summary
------------------------------------------------------
Debtor: M/s VBIS India Private Limited
TC 24/3088, Ushasandya Building
Kowdiar Devesam Board Road
Thiruvananthapuram-695003, Kerala
Liquidation Commencement Date: March 27, 2024
Court: National Company Law Tribunal Kochi Bench
Liquidator: Viswanathan Rajagopalan
Plot No. 4, 1/787A, Deivanai Nagar, II Street
Madipakkam, Chennai-600091
Tamil Nadu
Email: Viswanathan.irp@gmail.com
Mobile: 6379252059
Last date for
submission of claims: April 26, 2024
VISHWAKARMA COLD: CRISIL Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Shree
Vishwakarma Cold Storage (SVCS) continues to be 'CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft Facility 6 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SVCS 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 SVCS, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SVCS
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SVCS continues to be 'CRISIL D Issuer Not Cooperating'.
SVCS is a partnership firm set up in 1998 by Mr. Chamanlal
Rugnathji, Mr. Velaji Rugnathji, Mr. Thanaji Shankarji, Mr.
Rugnathji Dharmaji, and Mr. Chunilal Haraji. The firm is based at
Deesa, Banaskantha (Gujarat). It trades in potatoes and also
provides a cold storage facility for potatoes with a capacity of
13,500 tonnes.
=================
I N D O N E S I A
=================
ADARO INDONESIA: Moody's Affirms 'Ba1' CFR, Outlook Remains Stable
------------------------------------------------------------------
Moody's Ratings has affirmed Adaro Indonesia (P.T.) (AI)'s Ba1
corporate family rating and the Ba1 rating on its backed senior
unsecured notes. The notes are guaranteed by AI's parent Adaro
Energy Indonesia Tbk (P.T.) (Adaro Energy).
Moody's has also maintained the stable outlook.
AI's Ba1 CFR reflects the credit quality of its parent, Adaro
Energy, given the strong operational links between the two
companies. These include (1) Adaro Energy holding the largest stake
in AI at 88%, (2) AI benefiting from Adaro Energy's vertically
integrated operations across the coal supply chain, and (3) Adaro
Energy guaranteeing all of AI's debt.
"The affirmation of AI's Ba1 CFR reflects Moody's expectation that
Adaro Energy will maintain its strong balance sheet with low
leverage and very good liquidity over the next 12-18 months despite
large investments associated with business diversification," says
Maisam Hasnain, a Moody's Vice President and Senior Analyst.
RATINGS RATIONALE
Adaro Energy's credit metrics will remain very strong over the next
two years. Moody's expects the company's leverage – as measured
by adjusted debt/EBITDA – to remain below 2.0x despite the rating
agency's estimate of Adaro Energy investing around $1.5 billion on
new projects during 2024-25 using a combination of internal cash
and external debt.
Adaro Energy's credit quality is supported by its adherence to
strong governance practices (G-2 IPS) including conservative
financial policies. The company's long-term average gross leverage
over the past 10 years has only been around 1.5x, with leverage
maintained below 1.0x over the past three years.
Adaro Energy's low leverage remains underpinned by strong earnings
at its key subsidiary AI, which is one of the largest
single-location coal producers in the southern hemisphere, with
large coal reserves, low operating costs, and a long operating
track record since the early 1990s.
In addition, Adaro Energy has grown its Indonesian metallurgical
coal production substantially to 5.1 million metric tons (MT) in
2023, up from only 1 MT in 2019, and intends to grow production
further to 6 MT by 2024. Metallurgical coal sales, which generated
17% of group revenue in 2023, have supported Adaro Energy's
diversification strategy as the company targets to generate 50% of
revenue from non-thermal coal sales by 2030. In 2023, thermal coal
sales accounted for 83% of Adaro Energy's consolidated revenue.
A cornerstone investment that will drive Adaro Energy toward
achieving this revenue target is its planned aluminum smelter,
which together with its associated power plant, in North Kalimantan
will cost approximately $1.8 billion. Moody's estimates that, once
operational, the smelter will boost Adaro Energy's non-thermal coal
revenue to around 35% in 2026.
Adaro Energy is partnering with Singapore-incorporated Aumay Mining
Pte. Ltd. and Indonesian bauxite mining firm PT Cita Mineral
Investindo Tbk on the aluminum smelter, which will have an initial
500,000 MT per annum aluminum production capacity, and is scheduled
to commence operations by end-2025.
While this investment represents Adaro Energy's first foray into
aluminum, the partnership with other shareholders will help reduce
Adaro Energy's funding requirements and execution risk associated
with the smelter. Aumay and CITA each owns a 22.5% and 12.5% stake
respectively of the smelter, with Adaro Energy, through its
subsidiary PT Adaro Minerals Indonesia Tbk, owning the remaining
65%.
Moody's expects Adaro Energy to maintain very good liquidity over
the next 18 months with sufficient cash to meet its needs until
June 30, 2025. The rating agency also expects Adaro Energy to
continue to proactively repay or refinance debt ahead of scheduled
maturities. The company has enough cash to repay the $750 million
notes due in October 2024 with internal cash and still maintain
very good liquidity.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) CONSIDERATIONS
Thermal coal companies face a very high credit exposure to carbon
transition risks associated with the uncertain pace and magnitude
of a secular decline in coal demand. As decarbonization efforts
progress around the world, thermal coal companies will need to
demonstrate resilience to key risks such as lower earnings amid
declining coal demand and prices, and reduced access to funding.
Adaro Energy is responding to these risks by adhering to
conservative balance sheet management, and investing in non-thermal
coal related businesses. This will help the company to be more
resilient to a secular decline in thermal coal demand and affords
it greater financial flexibility to implement longer term plans for
business transition.
OUTLOOK
The outlook is stable, reflecting Moody's expectation that Adaro
Energy will effectively execute its growth strategy while adhering
to conservative financial policies.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's could upgrade the ratings if Adaro Energy continues to
improve its business profile through commodity diversification
while adhering to conservative financial policies, maintaining very
good liquidity and demonstrating a prudent approach toward further
investments and shareholder distributions.
Specific indicators Moody's would consider for an upgrade include
adjusted debt/EBITDA below 2.0x and adjusted EBIT/interest above
5.0x, both on a sustained basis.
Moody's could downgrade the ratings if Adaro Energy experiences
operational disruptions, or industry fundamentals weaken such that
its earnings and cash flow decline; or Adaro Energy engages in
aggressive shareholder distributions or capital investments, which
would indicate a deviation from its stated prudent financial
policies.
Specific indicators Moody's would consider for a downgrade include
adjusted debt/EBITDA above 3.0x or adjusted EBIT/interest below
4.0x.
The principal methodology used in these ratings was Mining
published in October 2021.
Adaro Indonesia (P.T.) (AI) is one of the largest single-site coal
producers in the southern hemisphere, and one of the world's
largest sub-bituminous coal companies. AI is 88% owned by Adaro
Energy Indonesia Tbk (P.T.), an integrated energy group listed on
the Indonesia Stock Exchange with a market capitalization of around
IDR86 trillion ($5.3 billion) as of April 24, 2024.
=====================
N E W Z E A L A N D
=====================
3370GNR LIMITED: Waterstone Insolvency Appointed as Receivers
-------------------------------------------------------------
Damien Grant and Adam Botterill of Waterstone Insolvency on April
17, 2024, were appointed as receivers and managers of 3370GNR
Limited.
The receivers and managers may be reached at:
Waterstone Insolvency
16 Piermark Drive
Rosedale
Auckland 0632
AUCKLAND CAR: Court to Hear Wind-Up Petition on May 3
-----------------------------------------------------
A petition to wind up the operations of Auckland Car Wreckers
Limited will be heard before the High Court at Auckland on May 3,
2024, at 10:45 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on March 14, 2024.
The Petitioner's solicitor is:
Cloete Van Der Merwe
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
EURO CITY: Creditors' Proofs of Debt Due on June 10
---------------------------------------------------
Creditors of Euro City Limited are required to file their proofs of
debt by June 10, 2024, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on April 19, 2024.
The company's liquidators are:
Tony Leonard Maginness
Jared Waiata Booth
Baker Tilly Staples Rodway Auckland Limited
PO Box 3899
Auckland 1140
KAHU CONTRACTING: Court to Hear Wind-Up Petition on May 7
---------------------------------------------------------
A petition to wind up the operations of Kahu Contracting Limited
will be heard before the High Court at Wellington on May 7, 2024,
at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on March 19, 2024.
The Petitioner's solicitor is:
Julia Snelson
Inland Revenue, Legal Services,
5th Floor, Asteron Centre
55 Featherston Street
PO Box 1462
Wellington
SMITH BRAND: Creditors' Proofs of Debt Due on May 20
----------------------------------------------------
Creditors of Smith Brand Communications Limited are required to
file their proofs of debt by May 20, 2024, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on April 16, 2024.
The company's liquidator is:
Simon Dalton
Gerry Rea Partners
PO Box 3015
Auckland
===============
P A K I S T A N
===============
PAKISTAN: Economic Conditions Show Improvement, Says PM
-------------------------------------------------------
Reuters reports that Pakistan's economic indicators are showing
positive signs, with an agenda of painful reforms and privatization
on track, Prime Minister Shehbaz Sharif said on April 26, ahead of
an IMF board meeting to decide on a $1.1 billion funding for the
country.
Reuters relates that the prime minister said, in an address to his
cabinet that was telecast live, that exports and remittances had
shown a rise within one-and-a-half month of his government.
The IMF board is meeting on April 29 to decide on the disbursement
of the second and last tranche of a $3 billion standby arrangement
Islamabad secured last summer to avert a sovereign default, Reuters
notes.
With a chronic balance of payment crisis, Pakistan needs $24
billion in payments for debt and interest servicing in the next
fiscal year starting July 1 - three-time more than its central
bank's foreign currency reserves.
According to Reuters, the South Asian nation is seeking yet another
long-term, larger IMF loan. Pakistan's Finance Minister, Muhammad
Aurangzeb, has said Islamabad could secure a staff-level agreement
on the new program by early July.
If successful, it would be the 24th IMF bailout for Pakistan,
Reuters relates.
Reuters says the IMF-led structural reforms require Pakistan to
raise its tax to GDP ratio from around 9% to at least 13%-14%, stop
losses in state-owned enterprise and manage its energy sector
losses which run into trillions of rupees.
"It is not just for an antibiotic to work anymore. It needs a
surgery," Reuters quotes Sharif as saying.
Pakistan's finance ministry expect the economy to grow by 2.6% in
the current fiscal year ending June, while average inflation is
projected to stand at 24%, down from 29.2% in fiscal year
2023/2024.
Inflation soared to a record high of 38% last May, Reuters says.
About Pakistan
Pakistan is a country located in South Asia. It has a coastline
along the Arabia Sea and the Gulf of Oman and is bordered by
Afghanistan, China, India, and Iran. Pakistan's capital is
Islamabad.
As reported in the Troubled Company Reporter-Asia Pacific in
December 2023, Fitch Ratings affirmed Pakistan's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'CCC'. Fitch
typically does not assign Outlooks to sovereigns with a rating of
'CCC+' or below.
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S I N G A P O R E
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CORDLIFE: Auditor to Retire After Issuing Disclaimer of Opinion
---------------------------------------------------------------
The Business Times reports that Cordlife's independent auditor KPMG
will not be seeking reappointment after issuing a disclaimer of
opinion on the financial statements for FY2023.
On April 25, Cordlife said KPMG had given written notice to retire
as the company's external auditor, though its disclaimer of opinion
was not raised as the reason for KPMG's decision to do so, BT
relates.
The cord-blood bank added that it "is not aware of any other
circumstances connected with KPMG's decision not to seek
reappointment as auditor of the company at the FY2023 annual
general meeting, that should be brought to the attention of
shareholders".
Earlier, KPMG had submitted a disclaimer of opinion in its
independent auditor's report dated April 24, stating that it had
not been able to obtain "sufficient appropriate audit evidence" to
provide a basis for an audit opinion on several areas, according to
BT.
These areas included the company's compliance with laws and
regulations, given Cordlife's ongoing investigations by the
Ministry of Health (MOH) and the Commercial Affairs Department
(CAD).
KPMG also addressed uncertainties in providing an audit opinion on
the subject of Cordlife's refunds and claims, after the company
said it would waive all future annual fees and initiate a refund
for clients affected by its recent case of damaged cord-blood
units, BT relates.
According to BT, the auditor said it was unable to obtain
sufficient audit evidence over the number of affected customers
with confirmed damaged cord blood arising from temperature
excursions as at Dec. 31 2023 - and therefore the "quantification
and significance" on any adjustments to be recorded in Cordlife's
financial statements as a result.
KPMG further highlighted that "there are no alternative audit
procedures that can be performed" in applying the going concern
basis of preparation for Cordlife's financial statements.
This is because investigations by MOH and CAD remain ongoing, while
Cordlife's business in Singapore remains suspended, BT says.
"The business operations in Singapore is a significant component of
the group operationally and its financial results are material to
the overall group," it added.
As at end-June 2023, total revenue of Cordlife's business
operations in the Republic represented 45 per cent of the group's
FY2023 results, while total assets of the Singapore business
comprised 51 per cent.
The Singapore business' operations was also the largest contributor
to the group's profit before tax for FY2023, highlighted KPMG.
Lastly, the auditor said it was unable to obtain sufficient audit
evidence regarding subsidiaries that require financial support from
Cordlife, adds BT.
The company separately on April 26 also flagged material
differences between its audited, and unaudited condensed interim,
financial statements for FY2023, BT reports.
Among other financial metrics, the group's earnings per share (EPS)
for the full year was restated to SGD0.0138, 4.8 per cent lower
than the earlier-posted FY2023 EPS of SGD0.0145.
Revenue was SGD55.7 million based on audited statements versus
SGD55.9 million in the unaudited results, while the company's
profit stood at SGD3.5 million instead of SGD3.7 million, BT
discloses.
BT relates that Cordlife said the discrepancies were due to the
"recognition of contract liabilities . . . during the preparation
of the audited financial statements".
These liabilities were related to future storage obligations for
all active clients whose cord-blood units are stored in the
company's affected "Tank A", which refers to one of the storage
tanks at Cordlife that were exposed to temperatures above
acceptable limits at different periods from November 2020.
About Cordlife
Headquartered in Singapore, Cordlife Group Limited, an investment
holding company, provides cord blood banking services in Singapore,
Hong Kong, India, Malaysia, the Philippines, and internationally.
The company operates through two segments, Banking and Diagnostics.
It offers cord blood, cord lining, and cord tissue banking
services, including processing and storage of stem cells; and
various diagnostics services, such as newborn genetic screening,
pediatric vision and ear screening, pediatric allergen test,
genetic talent test, preimplantation genetic screening, endometrial
receptivity test, non-invasive prenatal testing, and newborn
metabolic screening. The company also provides Moms Up, a mobile
app for pregnancy and parenting resources for moms and moms-to-be.
In addition, it provides medical laboratory, marketing, and
property investment services.
EMPIRE BULLION: Court to Hear Wind-Up Petition on May 10
--------------------------------------------------------
A petition to wind up the operations of Empire Bullion Pte Ltd will
be heard before the High Court of Singapore on May 10, 2024, at
10:00 a.m.
Maybank Singapore Limited filed the petition against the company on
April 22, 2024.
The Petitioner's solicitors are:
Shook Lin & Bok LLP
1 Robinson Road
#18-00 AIA Tower
Singapore 048542
FONTAS PTE: Creditors' Proofs of Debt Due on May 26
---------------------------------------------------
Creditors of Fontas Pte. Ltd. are required to file their proofs of
debt by May 26, 2024, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on April 22, 2024.
The company's liquidator is:
Farooq Ahmad Mann
Mann & Associates PAC
3 Shenton Way
#03-06C Shenton House
Singapore 068805
JA ENGINEERING: Court to Hear Wind-Up Petition on May 10
--------------------------------------------------------
A petition to wind up the operations of JA Engineering and Trading
Pte Ltd will be heard before the High Court of Singapore on May 10,
2024, at 10:00 a.m.
Maybank Singapore Limited filed the petition against the company on
April 22, 2024.
The Petitioner's solicitors are:
Shook Lin & Bok LLP
1 Robinson Road
#18-00 AIA Tower
Singapore 048542
RIIA METALS: Court Enters Wind-Up Order
---------------------------------------
The High Court of Singapore entered an order on April 12, 2024, to
wind up the operations of RIIA Metals International Pte. Ltd.
Maybank Singapore Limited filed the petition against the company.
The company's liquidators are:
Leow Quek Shiong
Gary Loh Weng Fatt
BDO Advisory
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
TERAS CONQUEST: Commences Wind-Up Proceedings
---------------------------------------------
Members of Teras Conquest 1 Pte Ltd, on April 19, 2024, passed a
resolution to voluntarily wind up the company's operations.
The company's liquidators are:
Ng Kian Kiat
Goh Wee Teck
8 Wilkie Road
#03-08 Wilkie Edge
Singapore 228095
*********
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-
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Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
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Editors.
Copyright 2024. All rights reserved. ISSN: 1520-9482.
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