/raid1/www/Hosts/bankrupt/TCRAP_Public/240510.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Friday, May 10, 2024, Vol. 27, No. 95
Headlines
A U S T R A L I A
AVANTI AU 2023-1: Moody's Upgrades Rating on Class F Notes to Ba2
BLACK HOPS: Set for Liquidation as Sale of Assets Imminent
CAPITAL BUILD: First Creditors' Meeting Set for May 14
DYNATECH INDUSTRIES: First Creditors' Meeting Set for May 14
IKONCIVIL PTY: First Creditors' Meeting Set for May 15
POLYCHAIN PTY: First Creditors' Meeting Set for May 14
PRINCIPAL FINANCIAL: ASIC Freezes SMSF Adviser and Co's Assets
TEDESCO PROPERTY: First Creditors' Meeting Set for May 14
C H I N A
COUNTRY GARDEN: Aims to Pay Missed Coupons by Next Week
WEST CHINA CEMENT: Moody's Cuts CFR to B1 & Unsecured Notes to B2
H O N G K O N G
CHINA OIL: S&P Affirms 'BB' LongTerm ICR, Outlook Stable
I N D I A
AKSHAY CHEMICALS: CRISIL Assigns B Rating to INR4.50cr Cash Loan
AXIS BANK: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable
EMC LTD: Salasar Techno Completes Acquisition of Company
GOOD MORNING: CRISIL Hikes Rating on INR5.0cr Proposed Loan to B
ICICI BANK: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable
JAI HIND: CRISIL Moves B Debt Ratings to Not Cooperating Category
NATURAL HERBALS: CRISIL Keeps B Debt Rating in Not Cooperating
NUTAVE STONE: CRISIL Keeps B Debt Ratings in Not Cooperating
NV AUTOSPARES: CRISIL Keeps D Debt Ratings in Not Cooperating
O. G. ENTERPRISES: CRISIL Keeps B Debt Ratings in Not Cooperating
ONEWORLD INDUSTRIES: CRISIL Keeps D Ratings in Not Cooperating
ONEWORLD RETAIL: CRISIL Keeps D Debt Ratings in Not Cooperating
ONEWORLD SOURCING: CRISIL Keeps D Debt Ratings in Not Cooperating
ORIENTAL TEXTILES: CRISIL Keeps D Debt Rating in Not Cooperating
P C GLOBAL: CRISIL Keeps D Debt Ratings in Not Cooperating
PANDURONGA TIMBLO: CRISIL Keeps D Debt Ratings in Not Cooperating
PANKAJ TRADERS: CRISIL Keeps B+ Debt Ratings in Not Cooperating
PATSON STEELS: CRISIL Keeps B+ Debt Ratings in Not Cooperating
PAWAN SHREE: CRISIL Keeps B Debt Ratings in Not Cooperating
PCI LIMITED: CRISIL Keeps D Debt Ratings in Not Cooperating
PCS AUTO: CRISIL Keeps B+ Debt Ratings in Not Cooperating
PEARL FURNITURE: CRISIL Keeps B+ Debt Ratings in Not Cooperating
PRAG ELECTRICALS: CRISIL Keeps D Debt Ratings in Not Cooperating
PRAKASAM ENTERPRISES: CRISIL Keeps B+ Rating in Not Cooperating
PRAKASAM HEAVY: CRISIL Keeps D Debt Ratings in Not Cooperating
PRIME MAG: CRISIL Keeps B Debt Rating in Not Cooperating Category
PRIYANKSHI FASHIONS: CRISIL Keeps B+ Ratings in Not Cooperating
SERA EXPORTS: CRISIL Keeps B+ Debt Ratings in Not Cooperating
SOIL AND ENVIRO: CRISIL Keeps B+ Debt Rating in Not Cooperating
SOMESWARA ENTERPRISES: CRISIL Keeps B Rating in Not Cooperating
SPICEJET LTD: Given More Time to Pay Engine Lease SPVs
SPICEJET LTD: Told to Reply to Aircastle's Petition in 15 Days
SRC LABORATORIES: CRISIL Keeps B- Debt Ratings in Not Cooperating
SUPRIYA COTEX: CRISIL Keeps D Debt Ratings in Not Cooperating
ULTIMO FABRICS: CRISIL Keeps D Debt Ratings in Not Cooperating
M A L A Y S I A
SARAWAK CABLE: Needs New White Knight to Regularize Financials
N E W Z E A L A N D
CARLIN HOTEL: Owes More Than NZD30 Million to Creditors
COLOURON LIMITED: Court to Hear Wind-Up Petition on May 13
JNP CONSTRUCTION: Court to Hear Wind-Up Petition on May 17
NDB HOLDINGS: Creditors' Proofs of Debt Due on June 7
PREMIUM WHOLESALE: Court to Hear Wind-Up Petition on May 23
TWENTY FORTY: Creditors' Proofs of Debt Due on June 3
P H I L I P P I N E S
ROXAS HOLDINGS: Is Leviste's Next Debt-Strapped, Land-Rich Target
S I N G A P O R E
88 GARAGE: Court to Hear Wind-Up Petition on May 24
ALUMINIUM INNOVATIONS: Creditors' Proofs of Debt Due on June 8
PROJECT WARUNG: Court Enters Wind-Up Order
ROYAL AMULET: Court to Hear Wind-Up Petition on May 24
TANK BUILT: Court Enters Wind-Up Order
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A U S T R A L I A
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AVANTI AU 2023-1: Moody's Upgrades Rating on Class F Notes to Ba2
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Moody's Ratings has upgraded the ratings on five classes of notes
issued by Avanti AU Auto ABS 2023-1 Trust in respect of the Series
2023-1.
The affected ratings are as follows:
Issuer: Avanti AU Auto ABS 2023-1 Trust in respect of the Series
2023-1
Class B Notes, Upgraded to Aa1 (sf); previously on Aug 23, 2023
Definitive Rating Assigned Aa2 (sf)
Class C Notes, Upgraded to Aa2 (sf); previously on Aug 23, 2023
Definitive Rating Assigned A1 (sf)
Class D Notes, Upgraded to A2 (sf); previously on Aug 23, 2023
Definitive Rating Assigned Baa1 (sf)
Class E Notes, Upgraded to Baa2 (sf); previously on Aug 23, 2023
Definitive Rating Assigned Ba1 (sf)
Class F Notes, Upgraded to Ba2 (sf); previously on Aug 23, 2023
Definitive Rating Assigned B1 (sf)
A comprehensive review of all credit ratings for the transaction
has been conducted during a rating committee.
RATINGS RATIONALE
The upgrades were prompted by an increase in note subordination
available for the affected notes and the collateral performance to
date.
No action was taken on the remaining rated class in the deal as
credit enhancement remains commensurate with the current rating for
the notes.
Following the April 2024 payment date, the note subordination
available for the Class B, Class C, Class D, Class E and Class F
Notes has increased to 15.3%, 12.0%, 8.6%, 6.4% and 4.0%
respectively, from 11.5%, 9.0%, 6.5%, 4.8%, and 3.0% at closing.
Principal collections have been distributed on a sequential basis
starting from the Class A Notes. Current total outstanding notes as
a percentage of the total closing balance is 75%.
As of end-March 2024, 3.2% of the outstanding pool was 30-plus day
delinquent and 0.5% was 90-plus day delinquent. The portfolio has
incurred 0.38% and 0.34% (as a percentage of the original note
balance) of gross and net losses to date, all of which have been
covered by excess spread.
Based on the observed performance to date and loan attributes,
Moody's has maintained its expected default assumption at 3.6% of
the current pool balance (equivalent to 3.1% of the original pool
balance). Moody's has also maintained the Aaa portfolio credit
enhancement at 16%.
The transaction is a cash securitisation of receivables backed by
motor vehicles. The receivables were originated and are serviced by
Branded Financial Services Pty Limited, a wholly owned and operated
subsidiary of Avanti Finance Limited.
The principal methodology used in these ratings was "Moody's Global
Approach to Rating Auto Loan- and Lease-Backed ABS" published in
November 2023.
Factors that would lead to an upgrade or downgrade of the ratings:
Factors that could lead to an upgrade of the ratings include (1)
performance of the underlying collateral that is better than
Moody's expectations, and (2) an increase in the notes' available
credit enhancement.
Factors that could lead to a downgrade of the ratings include (1)
performance of the underlying collateral that is worse than Moody's
expectations, (2) a decrease in the notes' available credit
enhancement, and (3) a deterioration in the credit quality of the
transaction counterparties.
BLACK HOPS: Set for Liquidation as Sale of Assets Imminent
----------------------------------------------------------
Business News Australia reports that Gold Coast-based craft
beermaker Black Hops Brewing looks set to be placed into
liquidation and its assets sold off after failing to secure a
rescue proposal from the brewer's directors, as the administrators
revealed that the company could have been insolvent as far back as
December 2022.
But the company, which collapsed on March 28 this year with debts
of AUD7.32 million, has drawn interest from "multiple" parties who
have lined up to secure its assets with a sale contract expected to
be secured within days, BNA says.
According to BNA, the administrators have concluded that Black Hops
Brewing is presently insolvent and that in the absence of a deed of
company arrangement (DOCA) being put forward by the directors,
"creditors would be best served if the company is wound up and
placed into liquidation".
The decision will be put to a vote at the second creditors' meeting
scheduled for Wednesday, May 15, 2024, the report discloses.
BNA relates that administrators David Mansfield and Tim Heenan, of
Deloitte Turnaround & Restructuring, have revealed in their report
to creditors that unsecured creditors to Black Hops Brewing are
owed AUD4.127 million, the bulk of which is for the Australian
Taxation Office (ATO) in the form of AUD3.2 million in alcohol
excise duty and BAS payments.
Remaining unsecured creditors are owed just over AUD1 million,
while the company's employees are owed AUD387,871 in entitlements.
At this stage, administrators are unable to indicate a potential
return to creditors from a sale of the assets, BNA notes.
"We note that due to the ongoing sale process, we are required to
withhold various asset values so as to not prejudice any ongoing
sale of the company's business," the administrators said in their
report.
The major secured creditor is Judo Bank which is owed AUD3.22
million, comprising almost all of the secured debt owed by the
company.
BNA says the balance sheet released by the administrators shows
that Black Hops Brewing has net assets of about AUD6 million,
although most of these are non-current and weighted towards its
production facilities.
Directors of the company have blamed the company's failure on the
"cash flow impact caused by reforms put in place by the ATO to
support businesses impacted by the COVID-19 pandemic".
The deferral of up to AUD1.8 million in excise tax debts for up to
six months hit the company hard when that debt fell due amid
falling revenue.
"We note that, based on our review of the company's books and
records it appears that these deferred amounts were ultimately paid
in or around February 2022, and the current outstanding excise tax
debt of AUD1.9 million was accrued after that date," said the
administrators.
A general drop in beer consumption nationally has also been blamed
for the company's financial fall, leading to sales falling 10 per
cent in FY23 and 20 per cent in the FY24 year to date.
BNA adds that the administrators reveal that Black Hops has been
running at a loss since FY22, with the cumulative trading losses
over the past three years currently sitting at AUD2.85 million.
The company last posted a net profit in FY21, totalling AUD867,233.
This was followed by a loss of AUD1.45 million in FY22, despite
revenue spiking to a record high of AUD16.26 million, BNA
discloses.
Revenue dropped to AUD14.89 million in FY23, leading to a loss of
AUD854,306 while the FY24 year to date shows revenue of AUD8.82
million and a running net loss of AUD544,531.
The administrators reveal that sales for FY24 are tracking 20 per
cent lower than the previous year. While gross profit margin has
remained steady between 76 per cent and 79 per cent, the company's
profitability suffered as costs failed to fall in line with the
drop in revenue.
"Our investigations are preliminary and are at an early stage,
however, it is our view that the company was insolvent by at least
1 December 2022," the administrators, as cited by BNA, said.
"A cause of action for trading whilst insolvent may potentially
exist against the current and former directors of the company,
however, further investigations are required should a liquidator be
appointed to the company."
BNA relates that the administrators have also investigated
transactions that may be classed as voidable which may be further
pursued by a liquidator.
Despite the troubles facing Black Hops Brewing, the administrators
have received 28 inquiries from parties interested in buying the
company's assets – with four non-binding offers received and
three of these parties shortlisted.
"If a suitable offer is selected to proceed, we expect that an
agreement for the sale of the company's business and assets will be
executed on or around May 10, 2024 (if not earlier)," said the
administrators.
CAPITAL BUILD: First Creditors' Meeting Set for May 14
------------------------------------------------------
A first meeting of the creditors in the proceedings of Capital
Build Pty Ltd will be held on May 14, 2024 at 10:30 a.m. via
teleconference.
John Vouris and Richard Albarran of Hall Chadwick were appointed as
administrators of the company on May 2, 2024.
DYNATECH INDUSTRIES: First Creditors' Meeting Set for May 14
------------------------------------------------------------
A first meeting of the creditors in the proceedings of Dynatech
Industries Aust Pty Ltd will be held on May 14, 2024 at 11:00 a.m.
via telephone conference from KPT Restructuring at Level 20, 20
Bond Street in Sydney.
Jason Tang and Ozem Kassem of KPT Restructuring were appointed as
administrators of the company on May 2, 2024.
IKONCIVIL PTY: First Creditors' Meeting Set for May 15
------------------------------------------------------
A first meeting of the creditors in the proceedings of Ikoncivil
Pty Ltd will be held on May 15, 2024 at 2:00 p.m. via virtual
meeting technology.
David Mutton and Andrew Blundell of Cathro & Partners were
appointed as administrators of the company on May 5, 2024.
POLYCHAIN PTY: First Creditors' Meeting Set for May 14
------------------------------------------------------
A first meeting of the creditors in the proceedings of Polychain
Pty Ltd will be held on May 14, 2024 at 11:00 a.m. via virtual
meeting only.
Anthony Elkerton of DW Advisory was appointed as administrator of
the company on May 2, 2024.
PRINCIPAL FINANCIAL: ASIC Freezes SMSF Adviser and Co's Assets
--------------------------------------------------------------
The Australian Securities & Investments Commission (ASIC) has
commenced urgent proceedings in the Federal Court against Sunny
Mahendra Prakash and his related companies, Principal Financial
Services Pty Ltd, Self-Managed Super Pty Ltd, Provest Enterprises
Pty Ltd and Super Funds Australia Pty Ltd ITF Principal
Superannuation Fund (Related Companies).
Mr. Prakash is a certified practising accountant, registered tax
practitioner, self-managed superannuation fund auditor and
financial advisor who is authorised by Principal Financial Services
Pty Ltd to provide financial product advice regarding, amongst
other products, retirement savings account products and
superannuation.
ASIC is currently investigating the businesses conducted by Mr.
Prakash and the Related Companies, including in connection with
financial advice and activities on client trading accounts from
January 28, 2016 onwards.
On March 28, 2023, the Court made orders preserving the assets of
Mr Prakash and Related Companies and restraining Mr Prakash from
leaving Australia.
On April 19, 2024, the parties' consented to a variation to carve
outs to those asset preservations orders.
The matter is listed for a case management hearing on May 16,
2024.
Any person who is a client of Mr Prakash or the Related Companies
and has concerns about advice they received, their investments
and/or trading on their accounts can contact ASIC at
Client.Queries.for.Mr.Prakash@asic.gov.au.
TEDESCO PROPERTY: First Creditors' Meeting Set for May 14
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Tedesco
Property Group Pty Ltd and Pino Family Pty Ltd will be held on May
14, 2024 at 11:00 a.m. at the offices of HoganSprowles at Level 9,
60 Pitt Street in Sydney.
Christian Sprowles and Michael Hogan of HoganSprowles were
appointed as administrators of the company on May 6, 2024.
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C H I N A
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COUNTRY GARDEN: Aims to Pay Missed Coupons by Next Week
-------------------------------------------------------
Reuters reports that Country Garden said it was unable to pay two
onshore coupons due on May 9, but China Bond Insurance Co would do
so on its behalf if it missed paying within a grace period that
ends next week.
Such a move would be the first time the state-owned company has
come to the rescue of an issuer under a Beijing-led programme
launched in 2022 to bolster investor confidence, and analysts
warned it could make future issuance harder, Reuters says.
Reuters relates that Country Garden, which defaulted on its $11
billion of offshore bonds and extended other onshore bond
repayments late last year, said in a filing it was unable to pay
onshore coupons due on May 9, though it was still trying to raise
funds.
"Due to reasons including sales recovery lagging expectations,
difficulties of reallocating capitals, we are unable to pay the
coupons on time," the developer said.
But it aimed to make the payment and additional interest incurred
by May 13, within the grace period of five working days, it added.
In August 2022, Chinese regulators told the state-owned company, a
provider of financial guarantee services, to give guarantees for
onshore bond issuance by a few selected private property
developers, Country Garden among them, according to Reuters.
Reuters says the directive came as concerns mounted that a
deepening debt crisis and increasing defaults could impact
companies that had been regarded as financially sound.
As part of the programme, China Bond Insurance Co will provide
"full amount, unconditional and irrevocable joint liability
guarantee" to the medium-term notes, bond documents showed.
If Country Garden still failed to pay the coupons by the end of a
grace period, the state-owned company would undertake the credit
enhancement obligations as a guarantor, the developer, as cited by
Reuters, added.
The coupons totalling CNY65.95 million ($9.1 million) due on May 9
are tied to two medium-term notes guaranteed by China Bond
Insurance Co and issued in May last year, a few months before
Country Garden defaulted on its offshore bonds.
They have an outstanding CNY800 million and CNY900 million,
respectively.
After last year's default, Country Garden managed to pay coupons in
December for two other state-guaranteed bonds, Reuters notes.
Reuters adds that analysts said the market is confident that the
state-owned company would help to make payments under the guarantee
programme, but were sceptical about the prospects of more new
issuance.
"Regulators had been trying to tell investors they did not have to
worry with this programme, but this will not work anymore;
companies still keep defaulting," Reuters quotes Steven Leung,
director of UOB Kay Hian, as saying. "Regulators will need to come
up with new methods to help new issuance."
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.
Kingboard Holdings-backed money lender Ever Credit on Feb. 27 filed
a winding-up petition against Country Garden to the Hong Kong High
Court, as the builder failed to pay term loans and interests worth
about HKD1.6 billion (USD204.4 million). The case's first hearing
will be held on May 17.
WEST CHINA CEMENT: Moody's Cuts CFR to B1 & Unsecured Notes to B2
-----------------------------------------------------------------
Moody's Ratings has downgraded the corporate family rating of West
China Cement Limited (WCC) to B1 from Ba3, its senior unsecured
ratings to B2 from Ba3, and maintained the negative outlook.
"The downgrade and negative outlook reflect WCC's aggressive
financial policy fueled by its growth that has led to a weakened
capital structure due to its increased reliance on short-term debt.
In addition, the company faces continuous deterioration in its
liquidity profile and rising structural subordination risks driven
by its large capital spending in overseas projects that carry high
execution risks," says Roy Zhang, a Moody's Vice President and
Senior Analyst.
"The rating action also considers the challenging operating
environment facing WCC's domestic cement operations, though
tempered by its strong market position in the Shaanxi region," adds
Zhang.
RATINGS RATIONALE
WCC's B1 corporate family rating reflects the company's dominant
market share in cement production in central and southern Shaanxi
Province, and its long track record of operations. The rating also
considers WCC's increasing business diversification through its
emerging presence in new markets outside of China, and business
synergies with Anhui Conch Cement Company Limited (A2 stable).
These strengths are counterbalanced by WCC's limited scale for its
rating level, industry cyclicality, limited diversification in
terms of product coverage, large investment requirements and
execution risks related to its overseas expansion projects. In
addition, the company has an aggressive financial policy as
indicated by its reliance on short-term financing.
WCC's liquidity and capital structure have weakened further as the
company continues to generate negative free cash flow in 2023 while
its unrestricted cash position remained low. As of the end of 2023,
WCC's unrestricted cash to short-term debt ratio was 25.4%,
compared with 36.8% a year ago.
The company's structural subordination risk has risen, driven by an
increasing portion of claims at its operating subsidiaries. As the
company expands overseas, Moody's believes this proportion will
continue to increase.
WCC's domestic business is affected by weak demand due to muted
property sales. Lower average selling prices have also led to lower
revenue and margins. Moody's expects market conditions in China to
remain challenging over the next 12-18 months as property demand
will not likely rebound strongly. Weak demand and excess capacity
will constrain margin recovery for Chinese cement producers.
Rising revenue from WCC's overseas projects in Africa has largely
offset the decline in its domestic business. Its overseas revenue
increased by 124% in 2023 compared with that a year ago. These
projects also carry higher margins because of favorable market
conditions. Moody's projects that WCC's total debt will reach
RMB12 billion as of the end of 2024, assuming some additional debt
funding for project expansion.
Moody's forecasts the company will grow its revenue by 18%-20% in
2024 to around RMB11 billion. Its EBITDA margin will likely
increase to 39%-41% in 2024, from around 33.3% for 2023, given the
higher margins of its overseas projects.
Notwithstanding the earnings contribution from overseas markets
that will improve WCC's credit metrics, Moody's has considered
potential execution risks and uncertainties associated with
earnings and cash flow generated from these projects.
Some mitigating factors include the company's market
diversification across different countries in Africa and some track
record of moving cash out of jurisdictions with currency control
measures. However, Moody's will continue to monitor how WCC manages
the execution risks.
WCC's liquidity is weak. The company had cash and cash-like sources
of about RMB2.1 billion as of the end of 2023. This, together with
its operating cash flow, is insufficient to cover its short-term
debts, dividend payout and capital expenditure over the next 12-18
months.
Moody's notes that most of its short-term debt are from onshore
banks, and that WCC has a track record of rolling over these debts,
given its market position and cash flow generation. In addition,
the company has broadened its funding access through long-term bank
loans in the offshore market. Moody's expects the company to
continue increasing offshore long-term borrowings to support its
overseas projects.
However, increasing debt and liabilities at the subsidiaries' level
will constrain its operating entity's ability to upstream cash to
the holding company.
The B2 senior unsecured bond rating is one notch lower than it
would otherwise be because of structural subordination risk. This
risk reflects the fact that most of WCC's claims are at its
operating subsidiaries and have priority over its senior unsecured
claims at the holding company in a bankruptcy scenario.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) CONSIDERATIONS
ESG considerations negatively impact WCC's ratings. The company's
exposure to environmental and social risks, including carbon
transition, natural capital, waste and pollution risks, is in line
with rated cement producers.
The rating action also considers WCC's heightened risk appetite
given execution risks related to its fast expansion in Africa and
aggressive financial policy of increased reliance on short-term
financing.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's could revise WCC's rating outlook to stable if the company
executes on its expansion plans and reduces its reliance on
short-term debt, resulting in adequate liquidity.
The ratings could be further downgraded if WCC is unlikely to
improve its liquidity management and capital structure because of
falling revenue, rising costs, aggressive expansion or unexpected
shareholder distributions.
The principal methodology used in these ratings was Building
Materials published in September 2021.
West China Cement Limited (WCC) is a leading cement producer in
terms of capacity in China's Shaanxi Province. As of the end of
December 2023, the company's annual capacity was 31.8 million
tons.
Most of WCC's plants are located in the central and southern parts
of Shaanxi province. The company has established its presence in
Xinjiang and Guizhou in China, and in Mozambique, the Democratic
Republic of the Congo and Ethiopia in Africa through the
construction of new facilities and acquisitions.
The company was 32.3% owned by its founder and chairman, Zhang
Jimin, and 29.1% owned by Anhui Conch Cement Company Limited as of
the end of December 2023.
WCC was listed on the Hong Kong Stock Exchange in August 2010.
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H O N G K O N G
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CHINA OIL: S&P Affirms 'BB' LongTerm ICR, Outlook Stable
--------------------------------------------------------
S&P Global Ratings affirmed its 'BB' long-term issuer credit rating
on China Oil and Gas Group Ltd. S&P also affirmed the 'BB' issue
rating on the company's senior unsecured notes.
S&P said, "The stable rating outlook indicates our expectations
that China Oil and Gas will further improve its corporate
governance over the next 12 months. We also anticipate the company
will sustain growth in gas sales and have stable capital
expenditure (capex) over the period."
China Oil and Gas' delay in financial reporting and prior-year
accounting adjustments highlights shortcomings in internal controls
and risk management. S&P said, "We have partly captured these
concerns in our moderately negative management and governance (M&G)
assessment on the company. In the delayed financial report, China
Oil and Gas made several prior-year adjustments due to previous
erroneous accounting entries and a misunderstanding of accounting
policies. We believe this underlines the company's inadequacy in
internal financial governance." The impairment of China Oil and
Gas' loan to an associate coal-mining company also reflects a
possible underestimation of policy and market risks pertaining to
the coal-mining business.
S&P does not consider the accounting issues to be material. The
aggregate net profit impact of the prior-year adjustments was
HK$218 million and the write-down of loan receivables was about
HK$301 million, which was non-cash in nature. This could also be
reflected in PricewaterhouseCoopers's audit opinion being
unqualified even after a protracted auditing process.
The China Oil and Gas management's transparency throughout the
event of delayed publication and its proactiveness in rectifying
the accounting and internal control issues mitigate S&P's
concerns.
On top of this, China Oil and Gas released in January 2024 the
remaining external guarantees to its 22.16%-owned associate,
Shandong Shengli Co. Ltd. (Shengli). This demonstrates that
progress has been made to improve corporate governance. We viewed
the external guarantees as a weakness in China Oil and Gas' risk
management, given the company's reactive approach and the lack of
due diligence during the acquisition of Shengli in 2021.
The accounting issues should have a minimal impact on China Oil and
Gas' bridge loan refinancing. The company obtained waivers from its
bridge-loan and term-loan lenders in April 2024 for breaching an
undertaking that its trading will not be suspended for more than 14
days.
China Oil and Gas has made good progress in securing additional
lenders for its three-year syndicated term loan facilities. We
believe the company has obtained committed facilities of over
US$300 million, sufficient to entirely replace the bridge loan.
China Oil and Gas targets to draw down the new loan in mid-June
2024.
China Oil and Gas' loan exposure to its coal mining associate will
gradually decline over the next few years. The associate company
has made slow progress in repaying shareholder's loan and interest,
totaling HK$1.16 billion at the end of 2023. This was because coal
mine production did not reach the approved capacity due to safety
inspections by the local government. This in turn affected the
mining company's coal sales and operating cash flow.
While the same regulatory environment will likely persist over
2024, China Oil and Gas has kept close communications with the
government to expedite resumption of operation at the coal
associate. S&P anticipates the repayment will normalize starting
2025, based on China Oil and Gas' revised loan repayment agreement
with the associate.
S&P said, "We expect steady growth and stable dollar margin for the
downstream gas business. China Oil and Gas should therefore
maintain stable debt leverage (ratio of funds from operations [FFO]
to debt) of 20%-23% over the next two to three years. The company
will benefit from steady growth in volume in the downstream gas
business, coupled with stable dollar margins on the back of more
efficient cost pass-through for the overall gas industry in China.
We also anticipate China Oil and Gas' upstream oil and gas business
in Canada will benefit from elevated energy prices. This will
likely support an operating margin of about Canadian dollar (C$) 30
per barrel of oil equivalent over the next couple of years.
"The stable rating outlook reflects our expectation that China Oil
and Gas will improve its corporate governance, including enhancing
internal controls and resolving intercompany transactions with
associate companies, over the next 12-18 months. The outlook also
reflects our expectation that China Oil and Gas will continue to
have satisfactory growth in gas sales and exercise discipline in
capex deployment over the period. We expect the company's dollar
margin to stabilize owing to an effective cost pass-through
mechanism."
S&P may lower the rating if China Oil and Gas' corporate governance
risks further heighten. This could be the result of:
-- The company extending additional financial support to its
associate companies;
-- Further delay in loan repayment by the coal mining associate;
or
-- China Oil and Gas engaging in large acquisitions of assets
other than its core gas distribution business, such as additional
upstream assets.
S&P said, "We may also lower the rating if we observe a tightening
of China Oil and Gas' funding access, leading to the ratio of
liquidity sources to uses weakening to less than 1.2x over the next
12 months.
"We may also downgrade China Oil and Gas if the ratio of FFO to
debt approaches 15% without the prospect of recovery. This may be a
result of weakening operating cash flow caused by delayed or
insufficient pass-through of costs, or large acquisitions.
"We may raise the rating if we have visibility on China Oil and
Gas's ability to enhance its dollar margin, such that the ratio of
FFO to debt improves and approaches 25% on a sustainable basis. In
addition, an upgrade hinges on a clear and stable dividend policy
at China Oil and Gas' subsidiary and project level, stable
improvement in the company's corporate governance, as well as
financial discipline in new investments and acquisitions.
"Governance factors are a moderately negative consideration in our
credit rating analysis of China Oil and Gas. This assessment
largely reflects the company's potential to deviate from its
strategic plans and engage in more opportunistic investment, as
seen in the acquisition of an upstream oil and gas project in
Canada, and stake in Shengli."
The assessment also reflects China Oil and Gas' less robust risk
management, as indicated by its shareholder's loan to its
17.5%-owned coal mining associate, with HK$1.1 billion outstanding
as at end 2023. China Oil and Gas has set a repayment plan for the
associate company, but the actual execution of the repayment plan
has fallen behind and has been rescheduled.
S&P said, "We also consider China Oil and Gas' weakness in internal
controls as indicated by the delayed publication of its 2023
full-year financial results. The auditor has provided an
unqualified opinion, but the restatements highlight increasing
risks regarding the repayment of the loan to the coal mining
company, resulting in an impairment on the loan receivable.
"Environmental factors have no material influence on our credit
rating analysis of China Oil and Gas. The company's natural gas
distribution business is less carbon intensive, compared with the
use of coal, and is in line with the Chinese government's long-term
policy for reducing carbon emission and converting coal usage to
gas."
China Oil and Gas has exposure to upstream oil and gas production
through its ownership of Baccalieu Energy in Canada. It also owns a
coal processing plant in Shandong, and has equity investment in a
coal mine. The profit contribution of these assets, however, should
remain small, and S&P does not expect the group to expand its
investments in these areas.
=========
I N D I A
=========
AKSHAY CHEMICALS: CRISIL Assigns B Rating to INR4.50cr Cash Loan
----------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B/Stable' rating to the
long-term bank facilities of Akshay Chemicals (AC).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.5 CRISIL B/Stable (Assigned)
Term Loan 0.19 CRISIL B/Stable (Assigned)
Working Capital
Term Loan 1.31 CRISIL B/Stable (Assigned)
The rating reflects AC's modest scale of operations, large working
capital requirement and weak financial profile. These weaknesses
are partially offset by the extensive experience of the proprietor
in the aromatic chemicals industry.
Key rating drivers and detailed description
Weaknesses:
* Modest scale of operations: AC's business profile is constrained
by subdued scale in the intensely competitive aromatic chemicals
industry. Revenue is expected at INR26-27 crore in fiscal 2024.
Modest scale will continue to limit its operating flexibility.
* Working capital-intensive operations: Gross current assets (GCAs)
were 196-200 days as on March 31, 2023, driven by inventory and
receivables of 97 days and 89 days, respectively. Debtor days are
high due to delayed payment from unorganized players. The working
capital cycle is partly supported by payables of around 100 days.
* Weak financial risk profile: The financial profile is weak, as
indicated by high gearing of more than 2.5 times and total outside
liabilities to adjusted networth (TOLANW) ratio of more than 5
times as on March 31, 2024. The debt protection metrics are
expected to remain average with interest coverage ratio of 1.93
times and net cash accrual to adjusted debt (NCAAD) ratio of 0.08
time for fiscal 2024. With steady accretion to reserves and absence
of debt funded capex and large withdrawals by proprietor, the
company's financial risk profile is expected to grow over the
medium term.
Strength:
* Extensive industry experience of the proprietor: The proprietor
has experience of over three decades in the aromatic chemicals
industry. This has given him a strong understanding of the market
dynamics and enabled him to establish healthy relationships with
suppliers and customers. As a result, the revenue has grown from
INR6.80 Crores in fiscal 2021 to around INR30.00 Crores in fiscal
2024
Liquidity: Stretched
Bank limit utilisation was high at 77% on average for the 12 months
through February 2024. Cash accrual is expected to be tightly
matched against term debt obligation of INR0.56 crore over the
medium term. The current ratio was moderate at 1.25 times as on
March 31, 2023.
Outlook: Stable
CRISIL Ratings believes AC will continue to benefit from the
extensive experience of its proprietor and established
relationships with clients.
Rating sensitivity factors
Upward factors
* Sustained improvement in scale of operations, leading to higher
cash accrual of INR2 crore
* Prudent working capital management, leading to improvement in
financial risk profile
Downward factors
* Decline in net cash accrual on account of decline in revenue or
operating profit or withdrawal by the proprietor
* Substantial increase in working capital requirement, weakening
liquidity with BLU above 95%
Established in 2000, AC is owned and managed by Mr Ramchandra M.
Kulkarni. The firm manufactures and trades in aromatic chemicals.
Its manufacturing facility is in Dombivli (E), Maharashtra.
AXIS BANK: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable
-----------------------------------------------------------
Fitch Ratings has affirmed Axis Bank Limited's Long-Term Issuer
Default Rating (IDR) at 'BB+'. The Outlook is Stable. The agency
has also affirmed the bank's Government Support Rating (GSR) at
'bb+' and Viability Rating (VR) at 'bb'.
KEY RATING DRIVERS
Support-Driven IDR: Axis's Long-Term IDR is driven by its GSR. The
GSR is one notch below India's sovereign rating (BBB-/Stable),
reflecting Fitch's expectation of a moderate probability of
extraordinary state support for Axis relative to the large state
banks. The Stable Outlook mirrors that on the sovereign rating.
Systemically Important: Axis's systemic importance is driven by its
size and share of system loans and deposits, which were 6% and 5%,
respectively, at the end of the financial year to 31 March 2023
(FY23), and its nationwide retail deposit franchise. However, the
probability of support is lower for Axis than for large state banks
due to Axis's private ownership.
Supportive Operating Environment (OE): The OE score of 'bb+', which
is higher than Fitch's implied 'b' category score, takes into
account its view of India's robust medium-term growth potential.
Fitch expects GDP growth of 7% in 2024 and 6.5% in 2025, supported
by investment prospects. The economy has been resilient as healthy
business sentiment, steady financial markets and the government's
capital spending buffered global economic headwinds and inflation.
These factors are conducive for banks to sustain profitable
business, provided risks are well-managed.
Established Domestic Franchise: Axis's business profile score of
'bb+' reflects its position as one of India's largest private
banks. Its strong local franchise and better capitalisation than
the sector average enables it to sustain business and revenue
generation through the cycle, and further expand its market share.
Growth Plans Above Sector Average: Fitch believes that the bank's
appetite for growth is likely to remain above the sector average,
albeit similar to other large private banks, which weighs on the
'bb' risk profile score. The score is also linked to the bank's
asset quality, as credit is the main risk, which it has managed
better than state banks. Even so, the bank's through-the-cycle
performance would be tested in a less benign OE because it plans to
sustain growth of 300bp-400bp above the sector average, while
pursuing significant growth in high-yielding unsecured consumer
loans as well as rural and SME loans.
Improving Asset Quality: Fitch has maintained the positive outlook
on the bank's 'bb' asset quality score. Fitch expects the bank to
demonstrate a longer record of maintaining the impaired-loan ratio
at current levels before raising the score, given the rapid loan
growth in riskier segments. The ratio fell to 1.6% in FY24, from 2%
in FY23, reflecting recoveries and write-offs as well as loan
growth, which offset new bad loans. Fitch expects credit costs to
remain manageable despite inching up moderately, which should help
the bank to maintain specific loan loss cover at around the current
level of 80%.
Stable Profitability: Fitch has revised the outlook on Axis's
earnings and profitability score to stable, from positive, as Fitch
does not see a significant further upside to the core metric from
current levels, despite remaining high relative to the years before
FY23. The operating profit/risk-weighted assets (RWA) ratio fell to
3.2% in FY24, from 3.4% in FY23, due mainly to higher regulatory
risk-weights, although steady net interest margin and fee income
growth partly offset the impact of higher operating costs from the
acquisition of Citibank's retail business.
Organic Capital Generation: Fitch expects Axis's common equity Tier
1 (CET1) ratio (FY24: 13.7%) to improve, supported by internal
accruals, despite the ratio falling by about 30bp year-on-year, due
largely to higher regulatory risk-weights on loans. The score also
factors in the bank's improving CET1 tolerance against loan losses,
evident from a net impaired loans/CET1 ratio of 2.3%, the lowest in
the past seven years. The bank has not disclosed any equity raising
plans, but any move to significantly bolster CET1 ratios from
current levels could be credit positive. Axis has good access to
capital markets.
Stable Funding: Axis's loan/deposit ratio (LDR) remained largely
stable at around 91% in FY24 ). Customer deposits were around 81%
of non-equity funding, with the majority being retail deposits.
Fitch expects a slight increase in the LDR to FY26, although it
will remain below previous highs (FY18: 100%) given the bank's
efforts to expand its deposit franchise to support high loan
growth. The bank's stable funding and liquidity position benefits
from a liquidity coverage ratio of 120% due to high holdings of
Indian government bonds - similar to other large banks - and a net
stable funding ratio of 135%.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Fitch would downgrade the GSR and the Long-Term IDR, if Fitch
believes the sovereign's ability and/or propensity to support Axis
has weakened. This could be reflected in negative action on India's
sovereign ratings.
The Short-Term IDR is mapped to the bank's Long-Term IDR, in line
with Fitch's criteria. Negative action on the Short-Term IDR could
occur if Fitch downgraded the Long-Term IDR by multiple notches to
below the 'B' category. However, such a downgrade is unlikely over
the medium term.
VR
Recent financial metric improvements have increased rating
headroom, thereby limiting the prospect of negative action.
Nevertheless, the VR could be downgraded if Fitch believes that the
bank's risk profile has deteriorated to a point where it can pose a
risk in a less benign OE, and become a more binding constraint on
its financial profile and loss-absorption buffers.
This could manifest through weakening in all the following three
key financial metrics:
- a reversal in the asset-quality trend, with the four-year average
impaired-loan ratio being sustained close to 5% (FY24: 2.5%);
- four-year average operating profit/RWA ratio sustained below 2%
(FY24: 2.6%); and
- a drop in the CET1 ratio closer to 10%, without a credible plan
to restore it back to current levels.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
A sovereign rating upgrade, which appears unlikely in the near
term, could lead to an upgrade in the bank's GSR and Long-Term IDR
if it coincided with a strengthening of the sovereign's ability
and, more importantly, propensity to support the bank, in Fitch's
view.
The bank's Short-Term IDR may be upgraded in the event that the
bank's Long-Term IDR is upgraded. However, Fitch does not foresee
this possibility in the medium term.
VR
The VR could be upgraded if Fitch assesses the bank's improved risk
and financial profiles can be sustained in less-benign operating
conditions. This sustainability might be evident through one or
more of the following three key financial metrics:
- four-year average impaired-loan ratio being sustained well below
2%;
- four-year operating profit/RWA ratio being sustained closer to
4.75%;
- the CET1 ratio being sustained well above current levels.
A higher VR is also possible if the Indian banks' OE score is
revised to 'bbb-' from 'bb+', although Fitch does not view it as
likely in the near term. A higher business profile score could also
lead to an upgrade to the VR but it will likely have to be
supported by better key financial metrics.
OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS
The bank's medium-term note (MTN) programme is rated at the same
level as the Long-Term IDR, in line with Fitch's criteria.
The Long-Term IDR (xgs) is driven by its VR, while its Short-Term
IDR (xgs) is in accordance with its Long-Term IDR (xgs) and the
short-term rating mapping outlined in Fitch's criteria. Senior
unsecured long-term ratings (xgs) are assigned at the level of the
Long-Term IDR (xgs).
OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES
The MTN programme rating would be downgraded if the Long-Term IDR
is downgraded, and upgraded in the event the IDR is upgraded.
Axis's Long-Term IDR (xgs) will move in tandem with the bank's VR.
Axis's Short-Term IDR (xgs) is primarily sensitive to changes in
the bank's Long-Term IDR (xgs) and would be mapped as per Fitch's
criteria. A change in the bank's Long-Term IDR (xgs) would lead to
a similar change in its senior unsecured long-term rating (xgs).
VR ADJUSTMENTS
The OE score of 'bb+' is above the implied category score of 'b'
for the following adjustment reasons: economic performance
(positive), and size and structure of the economy (positive).
The business profile score of 'bb+' has been assigned below the
implied category score of 'bbb' for the following adjustment
reason: business model (negative).
The funding and liquidity score of 'bbb-' is above the implied
category score of 'bb' for the following reason: deposit structure
(positive).
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
Axis's IDR and the Outlook are linked to India's sovereign
Long-Term IDR via the GSR, which reflects its view of the
probability of extraordinary state support, if needed.
ESG CONSIDERATIONS
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Prior
----------- ------ -----
Axis Bank
Limited LT IDR BB+ Affirmed BB+
ST IDR B Affirmed B
Viability bb Affirmed bb
Government Support bb+ Affirmed bb+
LT IDR (xgs) BB(xgs)Affirmed BB(xgs)
ST IDR (xgs) B(xgs) Affirmed B(xgs)
senior
unsecured LT BB+ Affirmed BB+
senior
unsecured LT (xgs) BB(xgs)Affirmed BB(xgs)
EMC LTD: Salasar Techno Completes Acquisition of Company
--------------------------------------------------------
The Economic Times reports that Salasar Techno Engineering Ltd
(STEL) on May 8 said it has paid INR168 crore as balance payment to
complete the acquisition of EMC Ltd through an insolvency process.
The total acquisition cost of the engineering, procurement and
manufacturing (EPC) firm is INR178 crore, STEL said in a
statement.
"Salasar successfully concludes the payment of INR168 crore for
acquisition of EMC Ltd. In March, Salasar bought EMC through an
e-auction facilitated by the liquidator. The acquisition is valued
at INR178 crore," it said, ET relays.
On the objectives behind the acquisition, STEL said the integration
of EMC Ltd will strengthen its market position as a leading
engineering and infrastructure company.
STEL is also into manufacturing of steel structures.
Based in Kolkata, India, EMC Ltd provided total turnkey solutions
with design, engineering, construction, erection, testing, and
commissioning of auxiliary subsystems, such as lighting and
illumination, and fire protection systems for power transmission
and distribution, balance of plant, railways, defense, automobile,
and industrial sectors in India, the United States, Canada, and
internationally.
EMC Ltd commenced liquidation on Nov. 21, 2023
GOOD MORNING: CRISIL Hikes Rating on INR5.0cr Proposed Loan to B
----------------------------------------------------------------
CRISIL Ratings has upgraded its rating on the long-term bank
facilities of Good Morning India Media Pvt Ltd (GMIMPL) to 'CRISIL
B/Stable' from 'CRISIL B-/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft Facility 4.85 CRISIL B/Stable (Upgraded
from 'CRISIL B-/Stable')
Proposed Overdraft 5.00 CRISIL B/Stable (Upgraded
Facility from 'CRISIL B-/Stable')
Term Loan 0.15 CRISIL B/Stable (Upgraded
from 'CRISIL B-/Stable')
The upgrade reflects improvement in company's liquidity profile.
Bank limit utilization decline to 47% in the 12 months through
February 2024 from 97% earlier. Furthermore, the company has
received INR18 crore of loans and advances that it had extended to
its subsidiaries and other affiliates, and has repaid loans and
debentures from group entity.
The rating reflects the company's modest scale of operations and
volatile profitability, large working capital cycle and sizeable
advances to affiliates and subsidiaries. These strengths are
partially offset by extensive experience of the promoters.
Key Rating Drivers & Detailed Description
Weakness:
* Modest scale of operations and volatile profitability: Exposure
to intense competition in the print media industry constrains
scalability, pricing power and profitability. Though revenue
improved to INR42 crore in fiscal 2024 from INR28 crore in fiscal
2023, it remains subdued. Also, operating margin remained volatile
at 8.5-9% (declined from 14.4% in fiscal 2023). With increase in
digital media platforms, spending on consumers on print media has
come down, thereby putting pressure on profitability and growth.
The company is diversifying to new geographies, and improvement in
scale will remain monitorable.
* Large working capital requirement: Working capital cycle is
likely to remain stretched over the medium term as the company has
to extend long credit period in its advertising business. Gross
current assets were estimated to be 350-400 days as of March 2024,
driven by stretched receivables of above 250 days. Working capital
cycle is partly supported by payables.
* Sizeable advances to affiliates and subsidiaries/group companies:
The company had invested INR15 crore and given loans and advances
of INR30 crore as on March 31, 2023 in its subsidiaries group
companies. Although it has received advances of INR18 crore in
fiscal 2024, these investment and loan form around 60% of the
networth as on March 31, 2024. The company is expecting to invest
in a few of its subsidiaries in fiscal 2025, which may impact
liquidity and will remain a rating sensitivity factor.
Strengths:
* Extensive Experience of the Promoters: The promoters have
experience of more than 10 years in the print media industry. The
company publishes five newspapers and has strong presence in
Haryana and Delhi. It has diversified its operations to the digital
platform this fiscal to increase reach and visibility. The
estimated revenues from operations for fiscal 2024 is INR42 crores
and expected to improve with backed by promoter's strong
understanding of market dynamics and healthy relationship with
customers.
Liquidity: Stretched
Liquidity is constrained by high loans and advances and investment
in group companies/subsidiaries of INR26 crores as on March 31,
2024. Bank limit utilisation has moderated to around 47% on average
(from 97%) for the 12 months through February 2024. Net cash
accrual of around INR3.5 crore per annum will be sufficient to meet
yearly term debt obligation of INR0.92 crore, over the medium term;
the surplus will cushion liquidity. Current ratio is estimated to
be around 1.5 times as on March 31, 2024.
Outlook: Stable
GMIMPL will continue to benefit from the extensive experience of
its promoters
Rating Sensitivity Factors
Upward factors:
* Revenue growth and stable operating margin leading to higher cash
accrual
* Significant improvement in working capital cycle with GCA below
250 days leading to moderate dependence on external debt
* Reduction in loans to group entities
Downward factors:
* Decline in revenue or operating margin leading to net cash
accrual below INR2 crore
* Further stretch in the working capital cycle or increase in
investment in group companies, putting pressure on liquidity
Incorporated in 2006 and promoted by Mr Rakesh Sharma and Mr Intzar
Ali, GMIMPL undertakes printing, publishing and circulation of
daily and weekly newspapers, magazines, periodicals, journals and
other publications. It has printing presses in Ambala (Haryana) and
Noida (Uttar Pradesh).
ICICI BANK: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable
------------------------------------------------------------
Fitch Ratings has affirmed ICICI Bank Limited's Long-Term Issuer
Default Rating (IDR) at 'BB+'. The Outlook is Stable. Fitch has
also affirmed the bank's Government Support Rating (GSR) at 'bb+'
and Viability Rating (VR) at 'bb'.
KEY RATING DRIVERS
Government Support-Driven IDR: ICICI's IDR is driven by its GSR,
which is a notch below India's Long-Term IDR (BBB-/Stable). This
reflects Fitch's expectation of a moderate probability of
extraordinary state support from the government relative to the
large state banks. The Stable Outlook on the IDR mirrors the
Outlook on the sovereign IDR.
Systemically Important: The GSR reflects Fitch's view of a moderate
probability of extraordinary state support for the bank, if
required, due to its private ownership, despite the bank's large
size and systemic importance. ICICI's systemic importance is
underpinned by a large market share of about 7% of system loans and
6% of deposits at the end of the financial year to March 2023
(FY23), as well as its large retail deposit franchise.
Supportive Operating Environment: The operating environment(OE)
score of 'bb+' is higher than Fitch's implied 'b' category score
after taking into account Fitch's view of India's robust
medium-term growth potential. Fitch expects GDP to expand by 7.0%
in 2024 and 6.5% in 2025, supported by investment prospects. The
economy has been resilient, as healthy business sentiment, steady
financial markets and the government's capital spending buffered
global economic headwinds and inflation. These factors are
conducive for banks to sustain profitable business, provided risks
are well managed.
Large Domestic Franchise: ICICI's business profile score of 'bb+'
reflects its strong retail-focused domestic franchise as India's
second-largest private bank. This, together with above-average
capitalisation, should support sustained generation of revenue and
business opportunities as well as market-share expansion through
the cycle.
Sustained Loan Growth: ICICI's risk profile score of 'bb' reflects
its above-average loan growth and risk appetite and is linked to
its asset-quality performance, since credit risk is predominant.
Fitch expects continued growth momentum across all loan segments
under India's buoyant economic conditions. This will test the
bank's risk controls when operating conditions turn less conducive,
since ICICI has been pursuing fresh underwriting in high-yield
segments, such as unsecured consumer credit, rural and SME loans.
Improved earnings and capital buffers can cover moderate risks.
Improving Asset Quality: Fitch maintains a positive outlook on
ICICI's asset-quality score, as it expects the bank to demonstrate
a longer record of maintaining a steady impaired loan ratio before
raising the score, given the rapid growth in lending to riskier
segments. The ratio fell to 2.3% in FY24, from 2.9% in FY23,
reflecting loan growth and steady recoveries as well as write-offs,
which offset fresh impaired loans. Credit costs should remain
manageable, despite inching up moderately from cyclical lows. This
should help the bank maintain its specific loan loss cover of about
81% in FY24.
Profitability to Remain Elevated: Fitch maintains its positive
outlook on ICICI's earnings and profitability score, as Fitch
expects profitability to remain elevated relative to prior years.
That said, headwinds, including some margin contraction, could
weigh on the bank being able to sustain its four-year average core
ratio at the top end of the 'bb' category. The operating
profit/risk-weighted asset ratio was stable, at around 4.0% in
FY24, as lower credit costs and above-average loan growth offset
the increase in risk-weighted assets due to regulatory measures.
Above-Average Capitalisation: Fitch expects the common equity Tier
1 (CET1) ratio to remain at around 16% till FY26, based on steady
internal capital generation. The ratio dropped to 15.6% in FY24,
from 17.1% in FY23, on higher risk density, driven by regulatory
changes and loan growth. Fitch's capitalisation assessment also
factors in above-peer capitalisation on an un-risk weighted basis,
improved equity headroom to absorb risks, as evident from a net
impaired loan/CET1 ratio of 2.5% in FY24, and ICICI's higher
capital flexibility, including from its stake in profitable
subsidiaries.
Stable Funding: Fitch expects the loan/deposit ratio to rise
moderately till FY26, but to remain below pre Covid-19 pandemic
levels (FY17: 101%) on an expanding deposit franchise, despite high
loan growth. The ratio is above the sector average, despite falling
to 87% in FY24, from 89% in FY23, and the bank's funding and
liquidity is supported by its strong deposit franchise and high
holdings of Indian government bonds - similar to peers.
Retail deposits form the majority of deposits, while the low-cost
deposit ratio is about 42%. Liquidity is also supported by a
liquidity coverage ratio of 120.7% and net stable funding ratio of
125.9%.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
IDRs and GSR
Fitch would downgrade the GSR and, in turn, the IDR if the agency
believed that the sovereign's ability or propensity to support
ICICI had weakened. This could be reflected in negative rating
action on India's sovereign ratings.
The Short-Term IDR is mapped to the bank's Long-Term IDR, in line
with Fitch's criteria. Negative rating action would be possible if
the Long-Term IDR were to be downgraded by multiple notches to
below the 'B' category, which is unlikely.
VR
Increased VR headroom limits the prospect of negative rating
action. Nevertheless, the VR could be downgraded if Fitch believes
that the risk profile has deteriorated to a point where it can pose
risk in a less benign OE and become a more binding constraint on
the bank's financial profile and loss-absorption buffers.
This could manifest through a significant weakening in all the
following three key financial metrics:
- a reversal in the asset-quality trend, with the four-year average
impaired-loan ratio approaching 5.0% (FY24: 3.6%);
- the four-year average operating profit/risk-weighted asset ratio
of below 3.0% for a sustained period(FY24: 3.4%); and
- a drop in the CET1 ratio closer to 10% without a credible plan to
restore it to prior levels.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
IDRs AND GSR
A sovereign rating upgrade, which appears unlikely in the near
term, could lead to an upgrade in the GSR and, in turn, the IDR, if
it coincides with a strengthening of the sovereign's ability and,
more importantly, propensity to support its banks.
The Short-Term IDR may be upgraded if the bank's Long-Term IDR is
upgraded. However, Fitch does not foresee this possibility in the
medium term.
VR
The VR could be upgraded if an improvement in the risk and
financial profiles appears sustainable in less-benign operating
conditions, potentially manifesting through any one or a
combination of the following three key financial metrics:
- the four-year average impaired-loan ratio being sustained well
below 2%;
- the four-year average operating profit/risk-weighted asset ratio
being sustained closer to 4%;
- a steady CET 1 ratio.
A higher VR is also possible if Fitch revises the OE score to
'bbb-', from 'bb+', although Fitch does not think this is likely in
the near term. A higher business profile score could also lead to
an upgrade of the VR, but it will likely have to be supported by
better key financial metrics.
OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS
The Long-Term IDR (xgs) is driven by the VR, while the Short-Term
IDR (xgs) is in accordance with the Long-Term IDR (xgs) and the
short-term rating mapping outlined in Fitch's criteria.
OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES
The Long-Term IDR (xgs) will move in tandem with the VR. The
Short-Term IDR (xgs) is sensitive to changes in the Long-Term IDR
(xgs) and would be mapped as per Fitch's criteria.
VR ADJUSTMENTS
The OE score of 'bb+' is above the implied category score of 'b'
for the following adjustment reasons: economic performance
(positive) and size and structure of the economy (positive).
The business profile score of 'bb+' has been assigned below the
implied category score of 'bbb' for the following adjustment
reason(s): business model (negative).
The funding and liquidity score of 'bbb-' is above the implied
category score of 'bb' for the following reason: deposit structure
(positive).
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
ICICI's IDR and the Outlook are linked to India's sovereign
Long-Term IDR via the GSR, which reflects Fitch's view of the
probability of extraordinary state support, should there be a
need.
ESG CONSIDERATIONS
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Prior
----------- ------ -----
ICICI Bank
Limited LT IDR BB+ Affirmed BB+
ST IDR B Affirmed B
Viability bb Affirmed bb
Government Support bb+ Affirmed bb+
LT IDR (xgs) BB(xgs)Affirmed BB(xgs)
ST IDR (xgs) B(xgs) Affirmed B(xgs)
JAI HIND: CRISIL Moves B Debt Ratings to Not Cooperating Category
-----------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of Jai
Hind Public School (JHPS) to 'CRISIL B/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 1.34 CRISIL B /Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
Term Loan 3.46 CRISIL B /Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with JHPS for
obtaining information through letter and email dated April 2, 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 JHPS, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on JHPS
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 JHPS to 'CRISIL B/Stable Issuer not
cooperating'.
JHPS commenced operations in 1997, in Bodh Gaya, Bihar. Mr Krishna
Deo Prasad manages the daily operations. Currently, the school is
run by the Jai Hind Educational and Welfare Society. It is
affiliated to the CBSE since 2012.
NATURAL HERBALS: CRISIL Keeps B Debt Rating in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Natural
Herbals and Seeds (NHS) continues to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 19.5 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with NHS for
obtaining information through letter and email dated April 19, 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 NHS, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on NHS
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
NHS continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
NHS, a partnership firm, was started in 2011 by Mr Praveen Rastogi
and his family members. Its manufacturing units are in Uttarakhand.
It produces menthol products such as menthol crystals and flags.
NUTAVE STONE: CRISIL Keeps B Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Nutave Stone
Crushers (NSC) continue to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 0.75 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Long Term 0.29 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 4.96 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with NSC for
obtaining information through letter and email dated April 19, 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 NSC, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on NSC
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
NSC continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
NSC, incorporated as a partnership concern in 2015, has set up a
plant for crushing of stones, at Nutave village, Karnataka. The
plant, with a capacity of 300 tonnes per hour, has become
operational from October 2016.
NV AUTOSPARES: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of NV Autospares
Private Limited (NV) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 1.5 CRISIL D (Issuer Not
Cooperating)
Funded Interest 1.55 CRISIL D (Issuer Not
Term Loan Cooperating)
Long Term Loan 4.2 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 0.52 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Working Capital 4.23 CRISIL D (Issuer Not
Term Loan Cooperating)
CRISIL Ratings has been consistently following up with NV for
obtaining information through letter and email dated April 19, 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 NV, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on NV is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of NV
continues to be 'CRISIL D Issuer Not Cooperating'.
NV, incorporated in 2005, is promoted by Mr Ahire. The company
manufactures seat frames and press parts. Its manufacturing
facility is at Nashik in Maharashtra.
O. G. ENTERPRISES: CRISIL Keeps B Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of O. G.
Enterprises (OGE) continue to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 1.84 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Fund- 4.16 CRISIL B/Stable (Issuer Not
Based Bank Limits Cooperating)
CRISIL Ratings has been consistently following up with OGE for
obtaining information through letter and email dated April 19, 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 OGE, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on OGE
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
OGE continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Established in 2015 in Arunachal Pradesh as a proprietorship
concern of Mr Obang Gao, OGE undertakes civil construction projects
related to roads, bridges, and buildings for the Arunachal Pradesh
government.
ONEWORLD INDUSTRIES: CRISIL Keeps D Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Oneworld
Industries Private Limited (OIPL; part of Oneworld group) continue
to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 25 CRISIL D (Issuer Not
Cooperating)
Cash Credit 20 CRISIL D (Issuer Not
Cooperating)
Cash Credit 95 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with OIPL for
obtaining information through letter and email dated April 19, 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 OIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on OIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
OIPL continues to be 'CRISIL D Issuer Not Cooperating'.
For arriving at the rating, CRISIL Ratings has combined the
business and financial risk profiles of OIPL, Worldstar Fabrics LLP
(WF), Oneworld Creations Private Limited (OCPL), Oneworld Retail
Private Limited (ORPL), Ultimo Fabrics Private Limited (UFPL),
Oneworld Sourcing (OS), Tissori India Fabrics Pvt Ltd (TIPL),
Maison De Couture Pvt Ltd (MDC), Worsted Overseas Trading LLP
(WOT), Oneworld Design Studio (ODS) and Zephyr Fabrics (ZF). This
is because all these entities, together referred to as the Oneworld
group, are in the same line of business and under a common
management, and have operational synergies.
Promoted and managed by Mr Urvil Jani and Mr Manoj Khushalani, the
Oneworld group trades in textile materials. It also sells
ready-made garments, manufacturing of which is outsourced.
Registered office is in Mumbai.
OIPL, incorporated in May 2012, trades in fabric. WF, ORPL, OS,
UFPL, TIPL, MDC, WOT, ODS, and ZF are engaged in trading of
different types of fabrics while OCPL is engaged in trading of
ready-made garments.
ONEWORLD RETAIL: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Oneworld
Retail Private Limited (ORPL; part of the Oneworld group) continue
to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4 CRISIL D (Issuer Not
Cooperating)
Cash Credit 9.5 CRISIL D (Issuer Not
Cooperating)
Cash Credit 15 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 15 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 8.75 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with ORPL for
obtaining information through letter and email dated April 19, 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 ORPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on ORPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
ORPL continues to be 'CRISIL D Issuer Not Cooperating'.
Promoted and managed by Mr Urvil Jani and Mr Manoj Khushalani, the
Oneworld group trades in textile materials. It also sells
ready-made garments, manufacturing of which is outsourced.
Registered office is in Mumbai.
ORPL, incorporated in May 2012, trades in ladies fabric. OS, OIPL,
UFPL, WF, TIPL, MDC, WOT, ODS, and ZF are engaged in trading of
different types of fabrics while OCPL is engaged in trading of
readymade garments.
ONEWORLD SOURCING: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Oneworld
Sourcing (OS; part of Oneworld group) continue to be 'CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 14 CRISIL D (Issuer Not
Cooperating)
Cash Credit 20 CRISIL D (Issuer Not
Cooperating)
Cash Credit 13 CRISIL D (Issuer Not
Cooperating)
Cash Credit 10 CRISIL D (Issuer Not
Cooperating)
Cash Credit 9 CRISIL D (Issuer Not
Cooperating)
Term Loan 12 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with OS for
obtaining information through letter and email dated April 19, 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 OS, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on OS is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of OS
continues to be 'CRISIL D Issuer Not Cooperating'.
For arriving at the rating, CRISIL Ratings has combined the
business and financial risk profiles of OS, Oneworld Creations
Private Limited (OCPL), Oneworld Industries Private Limited (OIPL),
Oneworld Retail Private Limited (ORPL), Ultimo Fabrics Private
Limited (UFPL), Worldstar Fabrics LLP (WF), Tissori India Fabrics
Pvt Ltd (TIPL), Maison De Couture Pvt Ltd (MDC), Worsted Overseas
Trading LLP (WOT), Oneworld Design Studio (ODS) and Zephyr Fabrics
(ZF). This is because all these entities, together referred to as
the Oneworld group, are in the same line of business and under a
common management, and have operational synergies.
Promoted and managed by Mr Urvil Jani and Mr Manoj Khushalani, the
Oneworld group trades in textile materials. It also sells
ready-made garments, manufacturing of which is outsourced.
Registered office is in Mumbai.
ORIENTAL TEXTILES: CRISIL Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Oriental
Textiles Industries (OTI) continues to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with OTI for
obtaining information through letter and email dated April 19, 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 OTI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on OTI
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
OTI continues to be 'CRISIL D Issuer Not Cooperating'.
Set up in 1991 as a partnership firm by Mr Rajeev Goel, Ms Shashi
Goel, and Mr Anuj Goel; and reconstituted as a proprietorship firm
of Mr Rajeev Goel in December 2017, OTI trades in textile products,
especially woollen fabric, including premium blankets and shawls.
Registered office is in Ludhiana.
P C GLOBAL: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of P C Global
Merchandising Private Limited (PCG; part of the Plaza group)
continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Packing Credit 6.42 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 2.58 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with PCG for
obtaining information through letter and email dated April 19, 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 PCG, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PCG
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
PCG continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
PC, set up in 1994-95 as a proprietorship firm by Mr. Sudeep Goel,
manufactures and exports women's readymade garments and its
facility is at Devli in New Delhi. Mr. Goel set up PCG in 2003. Its
manufacturing facility is in Noida, Uttar Pradesh.
PANDURONGA TIMBLO: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Panduronga
Timblo Industrias (PTI) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 20 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 20 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with PTI for
obtaining information through letter and email dated April 19, 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 PTI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PTI
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
PTI continues to be 'CRISIL D Issuer Not Cooperating'.
Established as a partnership concern in 1961, PTI is engaged in
iron-ore mining in Goa for nearly five decades. The firm owns five
operational mines in Goa. It also operates two jetties. The day to
day operations of the firm are presently being managed by Mr.
Sarvesh pramod Timblo elder son of Mr. Pramod Panduronga Timblo.
PANKAJ TRADERS: CRISIL Keeps B+ Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Pankaj
Traders (PT) continue to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit/ 6.0 CRISIL B+/Stable (Issuer Not
Overdraft facility Cooperating)
Term Loan 4.2 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with PT for
obtaining information through letter and email dated April 19, 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 PT, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PT is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of PT
continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Established in 2009 as a proprietorship firm by Mr Pankaj Prakash
Ostwal, PT is based in Deola district, Nashik, and trades in onions
and other agricultural commodities.
PATSON STEELS: CRISIL Keeps B+ Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Patson Steels
Private Limited (PSPL) continue to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 9 CRISIL B+/Stable (Issuer Not
Cooperating)
Channel Financing 12 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with PSPL for
obtaining information through letter and email dated April 19, 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 PSPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PSPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
PSPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Incorporated in 2008, PSPL is a distributor of SAIL for hot rolled
(HR)/cold rolled (CR) coils, HR sheets, CR sheets, and
thermo-mechanically treated bars in Chennai, Bangalore and Patna.
The company is promoted by Patna based Patwari family, and day to
day operations of the company are looked after by Mr. Vishal
Patwari and Mr. R. K. Patwari.
PAWAN SHREE: CRISIL Keeps B Debt Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Pawan Shree
Food International Private Limited (PSFIPL; Pawan Shree Group)
continue to be 'CRISIL B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 45 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Working 0.5 CRISIL B/Stable (Issuer Not
Capital Facility Cooperating)
CRISIL Ratings has been consistently following up with PSFIPL for
obtaining information through letter and email dated April 19, 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 PSFIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
PSFIPL is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of PSFIPL continues to be 'CRISIL B/Stable Issuer Not
Cooperating'.
For arriving at the ratings, CRISIL Ratings has combined the
business and financial risk profiles of Shreedhi Milk and Food
Products Private Limited (SMFPPL) and PSFIPL. This is because,
these entities, together referred as the Pawan Shree Group, have
common promoters, are in the same line of business, and have
significant operational, managerial and financial linkages.
PSFIPL, incorporated in 2012 processes raw milk and manufactures
dairy products such as milk powder, butter, ghee and other value
added products at its manufacturing unit in Maksi, Indore. The
products are sold under brand name of 'Shreedhi'.
SMFPPL, incorporated in 2017, processes and packages milk at
Mandwa, Indore. The group is promoted by Mr Narendra Jain and Mr.
Deepak Khandelwal.
PCI LIMITED: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of PCI Limited
(PCI; part of the Prime group) continue to be 'CRISIL D/CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 18 CRISIL D (Issuer Not
Cooperating)
Cash Credit 10 CRISIL D (Issuer Not
Cooperating)
Letter of credit 32 CRISIL D (Issuer Not
& Bank Guarantee Cooperating)
Letter of credit 20 CRISIL D (Issuer Not
& Bank Guarantee Cooperating)
Rupee Term Loan 1.31 CRISIL D (Issuer Not
Cooperating)
Rupee Term Loan 4.62 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with PCI for
obtaining information through letter and email dated April 19, 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 PCI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PCI
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
PCI continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
For arriving at the ratings, CRISIL Ratings has combined the
business and financial risk profiles of PCI and its fully owned
subsidiaries-PCI Middle East FZE, PCI Europe GmbH, and PCI Asia
Pacific Pvt Ltd. This is because all these entities, collectively
referred to as the Prime group, have common promoters, the same
marketing network, and strong business and financial linkages with
each other. CRISIL has not combined Prime Hi-tech Engineering Ltd
(PHEL) although the company is a 51% subsidiary of PCI, because of
management's stance that PCI and PHEL do not provide any financial
support to each other. The two companies operate at arm's length.
PCI, set up in 1986 by Mr Surinder Mehta, is the flagship company
of the Prime group. It provides technology-related solutions to
various industries, especially the power sector. Its activities
include marketing, distribution, and after-sales service support
for power testing, maintenance, and conditioning equipment, and
machine tools. Furthermore, it owns three windmills with combined
capacity of 4.5 megawatt in Kutch, Gujarat.
PCS AUTO: CRISIL Keeps B+ Debt Ratings in Not Cooperating
---------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of PCS Auto Cast
(PCS) continue to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL B+/Stable (Issuer Not
Cooperating)
Term Loan 2 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with PCS for
obtaining information through letter and email dated April 19, 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 PCS, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PCS
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
PCS continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
PCS was formed in fiscal 2015, as a partnership firm of Mr Selva
Kumar, Mr Senthil Kumar and Mr Chenniappan. The firm manufactures
iron castings and has total capacity of 350 tonnes per month.
Operations commenced in September 2015.
PEARL FURNITURE: CRISIL Keeps B+ Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Pearl
Furniture Private Limited (PFPL) continue to be 'CRISIL B+/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3.8 CRISIL B+/Stable (Issuer Not
Cooperating)
Term Loan 2.53 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with PFPL for
obtaining information through letter and email dated April 19, 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 PFPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PFPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
PFPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Incorporated in 2013, PFPL is promoted by the Rajkot
(Gujarat)-based Nandani family. The company manufactures all types
of furniture such as chairs and bedroom sets.
PRAG ELECTRICALS: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Prag
Electricals Private Limited (PEPL) continue to be 'CRISIL D/CRISIL
D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 9 CRISIL D (Issuer Not
Cooperating)
Cash Credit 5 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 1 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with PEPL for
obtaining information through letter and email dated April 19, 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 PEPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PEPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
PEPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Incorporated in 1976 by Mr Monoj Kanti Deb, PEPL manufactures
transformers ranging from 5-5,000 kilovolt-ampere in its plant at
Guwahati. The company also undertakes rural electrification
projects in the north-east, including supply, erection and
commissioning of sub-stations.
PRAKASAM ENTERPRISES: CRISIL Keeps B+ Rating in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Prakasam
Enterprises (PE) continues to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with PE for
obtaining information through letter and email dated April 19, 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 PE, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PE is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of PE
continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Set up as a partnership concern by Ms Ravuri Suseela and his family
members in 2005, PE processes and sells flue-cured Virginia
tobacco, which is used mainly in manufacturing cigarettes, and pipe
and chewing tobacco. The firm is based at Tanguturu in Prakasam
(Andhra Pradesh).
PRAKASAM HEAVY: CRISIL Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Prakasam
Heavy Engineering Private Limited (PHEPL) continue to be 'CRISIL
D/CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 22.5 CRISIL D (Issuer Not
Cooperating)
Overdraft Facility 5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with PHEPL for
obtaining information through letter and email dated April 19, 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 PHEPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PHEPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
PHEPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Established in February 2010, PHEPL is promoted by Mr Anil Kumar
and his family members. The company started operations as an
electrode manufacturer but subsequently became an electrical
contractor for carrying out projects for various state governments
and local authorities.
PRIME MAG: CRISIL Keeps B Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Prime Mag
Subscription Services Private Limited (PMS) continue to be 'CRISIL
B/Stable/CRISIL A4 Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 10 CRISIL A4 (Issuer Not
Cooperating)
Bank Guarantee 5 CRISIL A4 (Issuer Not
Cooperating)
Overdraft Facility 0.4 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with PMS for
obtaining information through letter and email dated April 19, 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 PMS, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PMS
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
PMS continues to be 'CRISIL B/Stable/CRISIL A4 Issuer Not
Cooperating'.
PMS, incorporated in 2003, provides subscription services primarily
for foreign journals. PMS is based in New Delhi and is promoted by
Mr Akhil Bhatia.
PRIYANKSHI FASHIONS: CRISIL Keeps B+ Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Priyankshi
Fashions Private Limited (PFFL) continue to be 'CRISIL B+/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Cash 8 CRISIL B+/Stable (Issuer Not
Credit Limit Cooperating)
CRISIL Ratings has been consistently following up with PFFL for
obtaining information through letter and email dated April 19, 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 PFFL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PFFL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
PFFL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Incorporated in 2011, PFFL is promoted by Mr. Kishanbhai Khetan and
his wife, Ms. Ramta Khetan. The company trades in saris and dress
materials and carries out its operations in Surat (Gujarat).
SERA EXPORTS: CRISIL Keeps B+ Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Sera Exports
(SE) continue to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bill Discounting 4 CRISIL B+/Stable (Issuer Not
Cooperating)
Export Packing 6 CRISIL B+/Stable (Issuer Not
Credit Cooperating)
Proposed Long Term 1 CRISIL B+/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with SE for
obtaining information through letter and email dated April 19, 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 SE, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SE is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of SE
continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
SE, set up in 1999 at Aligarh (Uttar Pradesh), manufactures
architectural hardware such as door and window fittings. The firm
is owned and managed by Mr Harbhajan Singh Sachdeva and family.
SOIL AND ENVIRO: CRISIL Keeps B+ Debt Rating in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Soil and
Enviro Industries Private Limited (SEIPL) continue to be 'CRISIL
B+/Stable/CRISIL A4 Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 3 CRISIL A4 (Issuer Not
Cooperating)
Cash Credit 5.5 CRISIL B+/Stable (Issuer Not
Cooperating)
Letter of Credit 1 CRISIL A4 (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SEIPL for
obtaining information through letter and email dated April 19, 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 SEIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SEIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SEIPL continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'.
Incorporated in 2004, SEIPL is located in Kolkata. SEIPL is owned
and managed by Mr Atit Kumar Talukdar, Mr Tapa Talukdar and Mr Asit
Talukdar. The company is engaged in designing, engineering,
fabrication, erection, manufacturing, supply, installation and
maintenance of air pollution control equipment and systems and
executes projects on turnkey basis.
SOMESWARA ENTERPRISES: CRISIL Keeps B Rating in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Someswara
Enterprises (SE) continues to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Warehouse Receipts 10 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SE for
obtaining information through letter and email dated April 19, 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 SE, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SE is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of SE
continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Established in 2015 as a proprietorship firm by Mr. K Someswara
Rao, SE trades in several products such as jute bags, wastepaper,
and pulses.
SPICEJET LTD: Given More Time to Pay Engine Lease SPVs
------------------------------------------------------
Andrew Curran at ch-aviation reports that SpiceJet has agreed to
pay engine lessors Team France and Sunbird France USD1.58 million
by May 22, after ignoring a March 2024 court order to make a
monthly lease payment within four weeks.
According to ch-aviation, the agreement was noted in a May 3 court
order signed by Judge Prathiba Singh of the Delhi High Court after
he said he was inclined to give the LCC "one last chance" to pay up
during a hearing earlier that week. The alternative was to issue
grounding orders.
Sunbird France 02 SAS and Team France 01 SAS, two engine leasing
special purpose vehicles controlled by ST Engineering, maintain
SpiceJet has been in arrears for several years and told the court
last week that the airline owed USD10.84 in overdue lease payments
for three engines, ch-aviation relates. In previous court hearings,
the lessors had sought payment orders and injunctions preventing
the carrier from using the engines.
On March 28, the court ordered the airline to pay that month's
lease costs within 28 days, ch-aviation recalls. However, later
submissions by the lessor's counsel said this was not done.
SpiceJet has a history of ignoring court orders. Back in court on
May 1, the judge threatened to issue engine grounding orders (two
are in service, one is on the ground) but gave the airline one last
chance to come to terms with the lessors. By May 3, another payment
agreement had been reached.
In addition to this matter, Delhi High Court registry records show
several cases underway against SpiceJet, including matters
initiated by former backer Kalanithi Maran and his entity KAL
Airways Private Limited; Delhi's tax authorities; Genesis Aircraft
Services SPV GASL Ireland Leasing A 1 Limited; and Cross Ocean
Partners SPV VS MSN 36118 Designated Activity Company, ch-aviation
discloses. Both cases filed by the SPVs are attempts by them to
enforce UK High Court monetary awards following lease breaches by
SpiceJet.
In addition, Aircastle, Celestial Aviation, Raymach Technologies,
and three DAE Capital SPVs are attempting to have SpiceJet declared
insolvent at India's National Company Law Tribunal, ch-aviation
notes.
Between January 1 and February 29, SpiceJet raised USD127.9
million, part of a USD271.5 million capital raising that is
intended to strengthen the financially challenged carrier's balance
sheet. Since then, SpiceJet has reached some out-of-court
settlements with creditors.
ch-aviation adds that the Sunbird France and Team France matter
returns to court on May 27.
About Spicejet
SpiceJet Limited -- http://www.spicejet.com/-- is an India-based
low-budget air carrier. The Company operates daily flights between
major cities in India. The carrier is India's second-biggest budget
airline, after IndiGo.
SpiceJet has faced a series of insolvency pleas from various
parties in the National Company Law Tribunal (NCLT) over pending
dues. These include Wilmington Trust SP Services (Dublin), Willis
Lease Finance, Celestial Aviation, Aircastle (Ireland) Ltd, and
Alterna Aircraft.
The NCLT has already rejected the pleas of Willis Lease Finance and
Wilmington Trust SP, while SpiceJet reached a settlement with
Celestial Aviation, according to Livemint.com.
As reported in the Troubled Company Reporter-Asia Pacific in late
March 2024, Moneycontrol said Alterna Aircraft BV Limited on March
18 withdrew its insolvency plea against SpiceJet at the NCLT. The
lessor plans to fight the same at an appropriate forum.
The plea of Aircastle is still pending.
SPICEJET LTD: Told to Reply to Aircastle's Petition in 15 Days
--------------------------------------------------------------
The Economic Times reports that the National Company Law Tribunal
(NCLT) on May 7 directed carrier SpiceJet to submit its reply
within 15 days to Aircastle (Ireland's) Limited insolvency
petition.
ET relates that the tribunal will now examine if the power of
attorney holder can represent an operational creditor in a
corporate insolvency resolution process (CIRP) petition. SpiceJet's
counsel had earlier questioned the maintainability of the petition,
reasoning that the petition was filed by the power of attorney
holder on behalf of the operational creditor which is not
permissible as per the law. ET says the counsel for SpiceJet argued
that Aircastle, the lessor, had filed another petition against
SpiceJet, and multiple petitions against the same corporate debtor
are not allowed under the Insolvency and Bankruptcy Code, 2016.
According to ET, Aircastle's counsel contended that the power of
attorney granted to the petitioner had been backed by a board
resolution passed by Aircastle and therefore is maintainable under
IBC.
Regarding two petitions filed by Aircastle, the lessor's counsel
argued that both petitions concerned two different debts by
SpiceJet. Each petition related to the default of around INR50
crore by SpiceJet, towards the rental charges for two Boeing
aircraft.
About Spicejet
SpiceJet Limited -- http://www.spicejet.com/-- is an India-based
low-budget air carrier. The Company operates daily flights between
major cities in India. The carrier is India's second-biggest budget
airline, after IndiGo.
SpiceJet has faced a series of insolvency pleas from various
parties in the National Company Law Tribunal (NCLT) over pending
dues. These include Wilmington Trust SP Services (Dublin), Willis
Lease Finance, Celestial Aviation, Aircastle (Ireland) Ltd, and
Alterna Aircraft.
The NCLT has already rejected the pleas of Willis Lease Finance and
Wilmington Trust SP, while SpiceJet reached a settlement with
Celestial Aviation, according to Livemint.com.
As reported in the Troubled Company Reporter-Asia Pacific in late
March 2024, Moneycontrol said Alterna Aircraft BV Limited on March
18 withdrew its insolvency plea against SpiceJet at the NCLT. The
lessor plans to fight the same at an appropriate forum.
The plea of Aircastle is still pending.
SRC LABORATORIES: CRISIL Keeps B- Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of SRC
Laboratories Private Limited (SLPL) continue to be 'CRISIL
B-/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3.44 CRISIL B-/Stable (Issuer Not
Cooperating)
Proposed Long Term 2.40 CRISIL B-/Stable (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 6.31 CRISIL B-/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SLPL for
obtaining information through letter and email dated April 19, 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 SLPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SLPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SLPL continues to be 'CRISIL B-/Stable Issuer Not Cooperating'.
SLPL was established by Dr. R C Reddy Yeluri in 2009 with a
research and development facility in Hyderabad. It was engaged in
manufacturing of fine and specialty chemicals until 2015. The
company stopped manufacture of fine chemicals during 2014-15 and
has set up an API manufacturing unit, which has commenced
commercial production from February 2016.
SUPRIYA COTEX: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Supriya Cotex
Private Limited (SCPL) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.00 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 0.25 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 1.75 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SCPL for
obtaining information through letter and email dated April 19, 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 SCPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SCPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SCPL continues to be 'CRISIL D Issuer Not Cooperating'.
SCPL, set up in 2011, processes cotton bales, and has capacity of
500 bales per day at its unit in Jalna, Maharashtra. Operations are
managed by Mr Satish Patil Nagare.
ULTIMO FABRICS: CRISIL Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Ultimo
Fabrics Private Limited (UFPL; part of Oneworld group) continue to
be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 35 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 10 CRISIL D (Issuer Not
Cooperating)
Proposed Cash 15 CRISIL D (Issuer Not
Credit Limit Cooperating)
Proposed Cash 9.88 CRISIL D (Issuer Not
Credit Limit Cooperating)
Term Loan 8 CRISIL D (Issuer Not
Cooperating)
Term Loan 1.12 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with UFPL for
obtaining information through letter and email dated April 19, 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 UFPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on UFPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
UFPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
For arriving at the rating, CRISIL Ratings has combined the
business and financial risk profiles of UFPL , Oneworld Creations
Pvt Ltd (OCPL), Oneworld Industries Private Limited (OIPL),
Oneworld Retail Private Limited (ORPL), Oneworld Sourcing (OS),
Worldstar Fabrics LLP (WF), Tissori India Fabrics Pvt Ltd (TIPL),
Maison De Couture Pvt Ltd (MDC), Worsted Overseas Trading LLP
(WOT), Oneworld Design Studio (ODS) and Zephyr Fabrics (ZF). This
is because all these entities, together referred to as the Oneworld
group, are in the same line of business and under a common
management, and have operational synergies.
Promoted and managed by Mr Urvil Jani and Mr Manoj Khushalani, the
Oneworld group trades in textile materials. It also sells
ready-made garments, manufacturing of which is outsourced.
Registered office is in Mumbai.
UFPL (Formally known as Oneworld Retail division and converted into
Private Limited Company with effect to March 2016) incorporated on
October 2015.
===============
M A L A Y S I A
===============
SARAWAK CABLE: Needs New White Knight to Regularize Financials
--------------------------------------------------------------
The Edge Malaysia reports that Sarawak Cable Bhd has to go back to
the drawing board and look for a new white knight to regularise its
financials.
According to the Edge, the Practice Note 17 (PN17) company
announced that the Memorandum of Agreement it entered with Serendib
Capital Ltd has fallen through.
Both parties are "unable to agree upon an exclusive working
relationship governed by a Memorandum of Agreement entered on Dec.
29, 2023", according to its bourse filing.
The Edge relates that the loss-making cable manufacturer said it
would provide further updates if there is any development regarding
this matter.
In December last year, Sarawak Cable said the UK-based Serendib
will undertake a "resuscitation exercise" to revive the company,
the Edge recalls.
In a previous statement, Sarawak Cable said that Serendib had
prepared a war chest of RM250 million to help pare down its debts
and recapitalise the company to cater to growing customer demand
for infrastructure grid development and high-voltage cables,
according to the Edge.
The details of the "resuscitation exercise" were not revealed.
However, the news lifted Sarawak Cable share price from around six
sen to 42.5 sen within a month.
The largest shareholder of Sarawak Cable is its chairman, Datuk
Seri Mahmud Abu Bekir Taib, the second child of late Tun Abdul Taib
Mahmud. He currently holds an 18.63% stake. Sarawak Energy also
holds a 13.13% stake in the company.
The Edge notes that the company's deadline to submit its
regularisation plan has been extended several times. The latest
deadline is on Sept. 30.
It has been loss making for eight consecutive quarters.
For the financial quarter ended Feb. 29, 2024 (3QFY2024), Sarawak
Cable's net loss widened to MYR21.04 million from MYR14.16 million
a year earlier, while revenue declined 43% to MYR74.43 million from
MYR130.55 million, the Edge discloses.
For 9MFY2024, its net loss expanded to MYR69.58 million from
MYR26.44 million in 9MFY2023, while revenue declined 39.9% to
MYR273.94 million from MYR455.94 million.
As of end-February 2024, the group's cash and cash equivalents
stood at MYR23.85 million while its loans and borrowings amounted
to MYR393.24 million.
About Sarawak Cable
Malaysian-based Sarawak Cable Bhd manufactures cables and wires. It
operates in four segments The Sale of power cables and conductors
segment supplies power cables and conductors components, Sale of
galvanized steel products, and steel structures segment supplies
galvanized steel products and steel structures and galvanizing
services. The transmission lines construction segment involves
supply, installation, and commissioning of transmission line
projects. And the corporate segment is involved in Group-level
corporate and management services.
In September 2022, Sarawak Cable Bhd said it triggered the criteria
of a Practice Note 17 (PN17) company following a disclaimer of
opinion expressed by its external auditor. It said it is in the
midst of formulating a regularisation plan to address the PN17
status.
=====================
N E W Z E A L A N D
=====================
CARLIN HOTEL: Owes More Than NZD30 Million to Creditors
-------------------------------------------------------
Otago Daily Times reports that the companies behind a luxury
Queenstown hotel described as "beyond five-star" owe creditors more
than NZD30 million after making significant trading losses since
opening.
ODT says the Carlin Hotel was built at a cost of more than NZD30
million by property developer and hospitality expert Kevin Carlin,
who died suddenly in December last year aged 69. It opened in April
2022.
A handful of suites in the boutique hotel included rooftop spas and
could come with extras such as hot tubs, fire pits and an in-room
chef or self-playing grand piano. In March last year, Mr Carlin, a
Californian native, listed The Carlin Hotel building for sale with
an asking price of NZD35 million, ODT recalls.
In February this year, receivers Diana Matchett and Colin Gower, of
BDO Christchurch, were appointed to both Carlin Hotel Property
Management (CHPML) - the management company operating the hotel -
and Queenstown Views Villas Ltd (QVVL), which owned six units
subject to to a management agreement with CHPML.
The first receiver's report came out last week, ODT notes.
According to ODT, the receivers said CHPML had sustained
significant trading losses and cashflow constraints which had
impacted its future viability.
As a result, QVVL was unable to recover amounts from CHMPL under
the terms of the management agreement.
Since their appointment, they had considered various receivership
strategies, ODT says. The business continued to operate from the
property and the support of key staff, customers and suppliers had
been gained to ensure continued trading.
Three units were owned by Pablo (Aust) Pty Ltd - an Australian
proprietary company with a Queensland address - which held security
over the land, buildings and business for the companies, and which
appointed the receivers, according to ODT.
Money due to Pablo, a secured creditor, from CHPML, either directly
or through cross guarantees, totalled NZD12.5 million as at
February 26, including accrued interest, ODT discloses. The amounts
due related to various loan facilities.
Other secured creditors totalled NZD116,000 which related to
creditors with specific security interests on the Personal Property
Securities Register and were subject to the receivers' review and
confirmation of validity.
On the receivers' appointment, outstanding employee preferential
claims totalled about NZD62,000. On February 28, about NZD28,000 of
that was paid to employees for pre-receiver-ship wages for the
period ended February 25 in order to maintain hotel operations,
according to ODT.
A preferential claim had been received from Inland Revenue for
about NZD317,000, ODT relates. The receivers understood that IRD
might further amend their claim against the company once
outstanding pre-receivership GST returns had been processed.
Total claims of NZD2.5 million had been received to date from
unsecured creditors and the receivers had not accepted or rejected
any creditor claims received, adds ODT.
ODT adds that the process of realising the company's assets was not
yet complete and it was too early to determine whether there were
likely to be any funds available for unsecured creditors.
The receivers' report for Queenstown Views Villas said the
receivers were realising the company's business and/or assets
through a formal confidential sales process. Assets were listed
with a book value of just over NZD26 million, ODT discloses.
COLOURON LIMITED: Court to Hear Wind-Up Petition on May 13
----------------------------------------------------------
A petition to wind up the operations of Colouron Limited will be
heard before the High Court at Hamilton on May 13, 2024, at 10:45
a.m.
The Commissioner of Inland Revenue filed the petition against the
company on March 5, 2024.
The Petitioner's solicitor is:
Christina Anne Hunt
Inland Revenue, Legal Services
21 Home Straight
PO Box 432
Hamilton
JNP CONSTRUCTION: Court to Hear Wind-Up Petition on May 17
----------------------------------------------------------
A petition to wind up the operations of JNP Construction Limited
will be heard before the High Court at Auckland on May 17, 2024, at
10:45 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on March 5, 2024.
The Petitioner's solicitor is:
Cloete Van Der Merwe
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
NDB HOLDINGS: Creditors' Proofs of Debt Due on June 7
-----------------------------------------------------
Creditors of NDB Holdings Limited are required to file their proofs
of debt by June 7, 2024, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on May 2, 2024.
The company's liquidators are:
Iain Bruce Shephard
Jessica Jane Kellow
PO Box 10340
Wellington 6143
PREMIUM WHOLESALE: Court to Hear Wind-Up Petition on May 23
-----------------------------------------------------------
A petition to wind up the operations of Premium Wholesale Solutions
Limited will be heard before the High Court at Auckland on May 23,
2024, at 10:45 a.m.
ANZ Pharma Wholesalers Limited filed the petition against the
company on March 5, 2024.
The Petitioner's solicitor is:
Peter James Broad
Level 1, 1/208 Great South Road
Papatoetoe
Auckland
TWENTY FORTY: Creditors' Proofs of Debt Due on June 3
-----------------------------------------------------
Creditors of Twenty Forty Farms Limited are required to file their
proofs of debt by June 3, 2024, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on April 29, 2024.
The company's liquidator is Ryan Eathorne.
=====================
P H I L I P P I N E S
=====================
ROXAS HOLDINGS: Is Leviste's Next Debt-Strapped, Land-Rich Target
-----------------------------------------------------------------
Bilyonaryo.com reports that an affiliate of Roxas & Co. Inc. (RCI)
has emerged on the hit list of self-styled value investor Leandro
Leviste.
In an interview with ANC, Mr. Leviste revealed that he was
interested in taking a foothold in another troubled sugar company,
Roxas Holdings Inc., Bilyonaryo.com relates.
"It is publicly-listed and currently not trading because the
company shut down its operations due to the difficulty of the sugar
milling business over the last few years. But we hope we can work
with the company, to turn it around, and create jobs for the
benefit of Nasugbu, Batangas," Mr. Leviste said.
According to the report, ROX stock cratered to a 26-year low of 65
centavos before it was suspended from trading last February when it
announced the closure of one of the country's oldest sugar mills,
Central Azucarera Don Pedro Inc. (CADPI), due to heavy losses.
It has lost 92 percent of its value since the First Pacific group
led by bilyonaryo Manny V. Pangilinan wrested control of the
company in 2013 from the Roxas-Elizalde group, Bilyonaryo.com
notes.
ROX has 264 hectares of property along the Tagaytay-Nasugbu
highway. It has mortgaged PHP10 billion of its property and plant
for its long term loans.
Last month, Mr. Leviste acquired an initial 7.6 percent interest in
RCI which he has since increased to 10 percent. Just like ROX, RCI
is mired in debt and with a massive landholding of 2,941 hectares
in Nasugbu, Bilyonaryo.com notes.
Roxas Holdings, Inc., engages in the business of manufacturing
sugar and allied products. The Company has the following
subsidiaries: Central Azucarera Don Pedro, Inc.; Central Azucarera
de la Carlota, Inc.; CADP Insurance Agency, Inc.; Roxol Bioenergy
Corp.; CADP Port Services, Inc.; RHI Agri-Business Development
Corporation; RHI Pacific Commercial Corp.; San Carlos Bioenergy,
Inc.; Najalin Agri Ventures, Inc.; Roxas Power Corporation; and
Northeastern Port Storage Corporation.
RHI's net loss ballooned to PHP1.11 billion in 2023, a 62% increase
from PHP689.94 million a year ago, Bilyonaryo.com disclosed. Core
net loss also climbed 10% to PHP841 million from PHP768 million in
fiscal year 2022.
=================
S I N G A P O R E
=================
88 GARAGE: Court to Hear Wind-Up Petition on May 24
---------------------------------------------------
A petition to wind up the operations of 88 Garage Pte Ltd will be
heard before the High Court of Singapore on May 24, 2024, at 10:00
a.m.
DBS Bank Ltd filed the petition against the company on May 2,
2024.
The Petitioner's solicitors are:
Shook Lin & Bok LLP
1 Robinson Road
#18-00 AIA Tower
Singapore 048542
ALUMINIUM INNOVATIONS: Creditors' Proofs of Debt Due on June 8
--------------------------------------------------------------
Creditors of Aluminium Innovations Pte. Ltd. and Apply Aluminium
Pte. Ltd. are required to file their proofs of debt by June 8,
2024, to be included in the company's dividend distribution.
The company commenced wind-up proceedings on April 30, 2024.
The company's liquidators are:
Lim Loo Khoon
Tan Wei Cheong
6 Shenton Way
OUE Downtown 2, #33-00
Singapore 068809
PROJECT WARUNG: Court Enters Wind-Up Order
------------------------------------------
The High Court of Singapore entered an order on May 3, 2024, to
wind up the operations of Project Warung Pte. Ltd.
Maybank Singapore Limited filed the petition against the company
on April 11, 2024.
The company's liquidators are:
BDO Advisory Pte Ltd
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
ROYAL AMULET: Court to Hear Wind-Up Petition on May 24
------------------------------------------------------
A petition to wind up the operations of Royal Amulet Pte Ltd will
be heard before the High Court of Singapore on May 24, 2024, at
10:00 a.m.
Zanelle Lim Jinn Tonn filed the petition against the company on
April 30, 2024.
The Petitioner's solicitors are:
Drew & Napier LLC
10 Collyer Quay
#10-01 Ocean Financial Centre
Singapore 049315
TANK BUILT: Court Enters Wind-Up Order
--------------------------------------
The High Court of Singapore entered an order on April 26, 2024, to
wind up the operations of Tank Built Pte. Ltd.
Koh Meng Tee (Xu Mingzhi) filed the petition against the company on
March 11, 2024.
The company's liquidators are:
Lau Chin Huat
Yeo Boon Keong
c/o Technic Inter-Asia
50 Havelock Road #02-767
Singapore 160050
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2024. All rights reserved. ISSN: 1520-9482.
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