/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/240528.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 Tuesday, May 28, 2024, Vol. 27, No. 107 Headlines A U S T R A L I A ADCON VIC: First Creditors' Meeting Set for May 31 AMY GILLETT: First Creditors' Meeting Set for May 31 ATHENA 2021-2PP: Fitch Affirms 'Bsf' Rating on Class F Notes BONZA AVIATION: Given Two Months to Find Buyer BUILDLUX PTY: First Creditors' Meeting Set for May 30 CYAN STONE: First Creditors' Meeting Set for June 3 DANFX TRADE: Former Director Daniel Ali Jailed for Fraud MYOB GROUP: S&P Alters Outlook to Negative, Affirms 'B-' ICR PROFORM FOOD: First Creditors' Meeting Set for May 30 TORRENS 2022-1: S&P Raises Class E Notes Rating to BB+ (sf) C H I N A BILIBILI INC: Net Loss Widens 21% in Q1 Ended March 31 CHINA EVERGRANDE: PwC Faces Crisis in China Over Audit CHINA EVERGRANDE: Unit Liquidators Strike Stake Sale Deal CHINA VANKE: Fitch Lowers LongTerm IDR to 'BB-', Outlook Negative KAISA GROUP: Liquidation Hearing Adjourned to June 24 SHANDONG ENERGY: Moody's Affirms 'Ba1' CFR, Alters Outlook to Neg. ZHONGSHAN TORCH: Moody's Cuts CFR to B1, Outlook Remains Negative I N D I A A.R.T. FABRICATION: CARE Keeps B- Debt Rating in Not Cooperating APLAB LIMITED: ICRA Keeps D Debt Ratings in Not Cooperating ARSHIYA LIMITED: Insolvency Resolution Process Case Summary ASHIANA DWELLINGS: ICRA Keeps D Debt Rating in Not Cooperating ASHIANA LANDCRAFT: CARE Keeps D Debt Ratings in Not Cooperating ASHOK BRICKS: Ind-Ra Keeps D Rating in Non-Cooperating ASIAN HOTELS: Ind-Ra Keeps D Rating in NonCooperating ASIATIC ELECTRICAL: Ind-Ra Keeps B+ Rating in NonCooperating AXXELENT PHARMA: Ind-Ra Affirms BB+ Bank Rating, Outlook Stable BILVA EDU: Voluntary Liquidation Process Case Summary BKD INFRASTRUCTURE: Ind-Ra Keeps BB+ Rating in NonCooperating COIRFOAM INDIA: Ind-Ra Keeps BB- Rating in NonCooperating COLOSSUS TRADE: ICRA Keeps B+ Debt Rating in Not Cooperating DHRUV WELLNESS: CARE Keeps D Debt Rating in Not Cooperating DIACH CHEMICALS: ICRA Keeps B+ Debt Rating in Not Cooperating DSS INFRASTRUCTURE: Insolvency Resolution Process Case Summary EAST COAST: ICRA Moves D Debt Ratings to Not Cooperating Category EMERALD ALCHYMICUS: ICRA Keeps D Debt Ratings in Not Cooperating EXCELL AUTOVISTA: Ind-Ra Affirms BB+ Bank Rating, Outlook Stable GANAPATHY ENTERPRISES: CRISIL Keeps B+ Ratings in Not Cooperating GEETANJALI GRAPHICS: Ind-Ra Keeps D Rating in NonCooperating GREEN GOLD: Ind-Ra Affirms BB NCD Rating, Outlook Stable HERCULES HOSPITALITIES: Ind-Ra Keeps B Rating in NonCooperating HIA EXPORTS: Ind-Ra Keeps BB- Rating in NonCooperating HOTEL RAJ: CRISIL Keeps B+ Debt Ratings in Not Cooperating IL&FS FINANCIAL: Ind-Ra Affirms D Bank Loan Rating IL&FS TRANSPORTATION: Ind-Ra Affirms D NCD Rating INDORE TABLE: Ind-Ra Keeps D Rating in Non-Cooperating INDRANI AUTOMOTIVE: Ind-Ra Keeps BB Rating in NonCooperating INFRASTRUCTURE LEASING: Ind-Ra Affirms D Bank Loan Rating J M J CHARITABLE: Ind-Ra Keeps BB Loan Rating in NonCooperating JAI MATA: CARE Keeps C Debt Rating in Not Cooperating Category JAYPEE INFRATECH: NCLAT Upholds NCLT Order on Suraksha Realty Bid JDN NUTRITION: Ind-Ra Affirms BB Term Rating, Outlook Stable JSK CORPORATION: Ind-Ra Keeps BB Rating in NonCooperating K.P.R. AGROCHEM: ICRA Keeps D Debt Ratings in Not Cooperating KARKINOS HEALTHCARE: CARE Lowers Rating on INR109cr Loan to D KP POLYOLEFIN: Ind-Ra Keeps BB+ Rating in NonCooperating KUMAR SPINTEX: Ind-Ra Affirms BB- Bank Rating, Outlook Stable KUNSTWERK MACHINERY: CRISIL Keeps B Ratings in Not Cooperating LAKSHMI STEEL: Ind-Ra Hikes Rating to BB+, Outlook Stable LYKA BDR: Ind-Ra Keeps B Rating in NonCooperating MAJESTIC PROPERTY: CRISIL Keeps B+ Ratings in Not Cooperating MAKALU TRADING: Liquidation Process Case Summary MANJEET FIBERS: Ind-Ra Keeps BB+ Rating in NonCooperating MEDVARSITY ONLINE: Ind-Ra Cuts Bank Loan Rating to BB- MEGRAJ HOLDINGS: Ind-Ra Affirms BB NCD Rating, Outlook Stable MONALISA ENGICONS: Ind-Ra Keeps BB- Rating in NonCooperating MUTHOOT FINANCE: Moody's Affirms 'Ba2' CFR, Outlook Remains Stable NEW JAI: CARE Keeps D Debt Rating in Not Cooperating Category NORTHWAY INFRATECH: Ind-Ra Keeps BB- Rating in NonCooperating PALAK FERRO: ICRA Keeps D Debt Ratings in Not Cooperating PMS-COM-PRO: Insolvency Resolution Process Case Summary PREMIER EXPORTS: Ind-Ra Keeps BB Rating in NonCooperating R.J. CHATHA: CRISIL Keeps B+ Debt Ratings in Not Cooperating R.K. NATURAL: Ind-Ra Keeps B Rating in NonCooperating R.K.R. GOLD: Ind-Ra Cuts Term loan Rating to D RAGHUVEER METAL: Ind-Ra Keeps C Rating in NonCooperating RELIGARE FINVEST: Ind-Ra Corrects October 19, 2023 Rating Release RENEW POWER: Fitch Affirms 'BB-' Rating on $585M Sr. Secured Notes RISHI TRADERS: Ind-Ra Cuts Bank Loan Rating to D S A MULLA: CARE Keeps C Debt Rating in Not Cooperating Category S.KADIRVEL: Ind-Ra Keeps BB Rating in NonCooperating SAGAR MOTORS: Ind-Ra Keeps BB+ Rating in NonCooperating SAMRIDDHI TRADERS: Ind-Ra Cuts Rating to B+, Outlook Negative SAR SENAPATI: CARE Keeps D Debt Rating in Not Cooperating Category SHARDA TIMBERS: ICRA Keeps D Debt Ratings in Not Cooperating SICAL IRON: ICRA Keeps D Debt Ratings in Not Cooperating Category SIDDHARTHA INNOPAK: Ind-Ra Keeps BB- Rating in Non-Cooperating SIDHARTH CONSTRUCTION: CARE Keeps D Ratings in Not Cooperating SIVARAM & CO: Ind-Ra Affirms BB+ Bank Rating, Outlook Stable SOND KNIT: Ind-Ra Keeps B+ Rating in Non-Cooperating SOWIL LIMITED: Ind-Ra Keeps BB Rating in Non-Cooperating SRUSTI INFRADEVELOPERS: CRISIL Keeps B+ Rating in Not Cooperating STARWINGS PLASTIC: Ind-Ra Keeps B Rating in Non-Cooperating SUDARSHAN BEOPAR: Ind-Ra Keeps BB+ Rating in Non-Cooperating SUPREME INFRASTRUCTURE: NCLT Admits Srei Infra's Insolvency Plea TARA SYNTEX: Ind-Ra Keeps B+ Rating in Non-Cooperating TECHNO TRAK: Ind-Ra Keeps BB Rating in Non-Cooperating VAISHNODEVI OILSEEDS: Ind-Ra Keeps BB Rating in Non-Cooperating VAISHNODEVI REFOILS: Ind-Ra Keeps BB+ Rating in Non-Cooperating VASUPRADA PLANTATION: Ind-Ra Corrects Dec. 29, 2023 Rating Release VENUS DENIM: Ind-Ra Hikes Bank Loan Rating to B-, Outlook Stable VINAYAK MARINE: CARE Keeps B+ Debt Rating in Not Cooperating VISHAL SPINTEX: Ind-Ra Affirms BB Bank Rating, Outlook Stable VISHESH ENGINEERING: ICRA Moves D Debt Ratings to Not Cooperating VISHRAMBHAI GORASIA: Ind-Ra Keeps BB- Rating in Non-Cooperating Y. ACHAMMA: Ind-Ra Keeps B Rating in Non-Cooperating YADU SUGAR: Ind-Ra Keeps D Rating in Non-Cooperating N E W Z E A L A N D DWYER LAW: Court to Hear Wind-Up Petition on June 27 LANDWORK CIVIL: Creditors' Proofs of Debt Due on June 21 PAMATA TRANSPORT: BDO Tauranga Appointed as Liquidator SIMON LIMITED: Court to Hear Wind-Up Petition on June 11 YS GROUP: Creditors' Proofs of Debt Due on June 20 S I N G A P O R E BLOOMBERG TRADING: Creditors' Proofs of Debt Due on June 27 BUEY TAHAN: First Creditors' Meeting Set for June 10 LIPPO MALLS: Fitch Lowers LongTerm IDR to 'C' on Exchange Offer LUXE FOOD: Creditors' Meeting Set for June 7 REGALRARE GEM: Court to Hear Wind-Up Petition on June 14 RIAU CAPITAL: Creditors' Meeting Set for June 7 V I E T N A M PETROVIETNAM POWER: Fitch Affirms BB+ LongTerm IDR, Outlook Stable X X X X X X X X [*] BOND PRICING: For the Week May 20, 2024 to May 24, 2024 - - - - - ================= A U S T R A L I A ================= ADCON VIC: First Creditors' Meeting Set for May 31 -------------------------------------------------- A first meeting of the creditors in the proceedings of Adcon Vic Pty Ltd will be held on May 31, 2024 at 10:30 a.m. via teleconference. David Michael Stimpson and Michael Carrafa of SV Partners were appointed as administrators of the company on May 21, 2024. AMY GILLETT: First Creditors' Meeting Set for May 31 ---------------------------------------------------- A first meeting of the creditors in the proceedings of Amy Gillett Foundation Pty Ltd will be held on May 31, 2024 at 10:00 a.m. via virtual meeting held by Microsoft Teams. David Hardy and Ryan Eagle of KPMG were appointed as administrators of the company on May 31, 2024. ATHENA 2021-2PP: Fitch Affirms 'Bsf' Rating on Class F Notes ------------------------------------------------------------ Fitch Ratings has upgraded three note classes and affirmed another three from Athena 2021-2PP Trust. The transaction is backed by a pool of first-ranking Australian conforming residential full-documentation mortgage loans originated by Athena Mortgage Pty Limited. The notes were issued by Perpetual Corporate Trust Limited in its capacity as trustee. The upgrades to the transaction's class B, D and E notes reflect the build-up of credit enhancement since closing. Entity/Debt Rating Prior ----------- ------ ----- Athena 2021-2PP Trust A AU3FN0065389 LT AAAsf Affirmed AAAsf B AU3FN0065397 LT AAAsf Upgrade AA+sf C AU3FN0065405 LT A+sf Affirmed A+sf D AU3FN0065413 LT A-sf Upgrade BBB+sf E AU3FN0065421 LT BB+sf Upgrade BBsf F AU3FN0065439 LT Bsf Affirmed Bsf KEY RATING DRIVERS Resilient Asset Performance: The 30+ and 90+ day arrears for Athena 2021-2PP as of end-March 2024 were both nil, outperforming Fitch's 4Q23 Dinkum RMBS index of 1.21% and 0.56%, respectively. There have been no losses to date. The 'AAAsf' weighted-average foreclosure frequency (WAFF) for Athena 2021-2PP of 5.5% is driven by the WA unindexed current loan/value ratio (LVR) of 46.8% and, under Fitch's methodology, investment loans of 17.4% of the pool. The 'AAAsf' WA recovery rate (WARR) of 27.6% is driven by the portfolio's WA indexed scheduled LVR of 47.2% and constrained by the application of the portfolio loss floor. Liquidity Risk Mitigated: Structural features include an amortisation amount that redirects excess income to repay the notes' principal balances after the call option date and a liquidity facility sized at 1.5% of the rated note balance, with a floor of AUD450,000; this is sufficient to mitigate payment interruption risk. The transaction is currently paying principal pro rata and will revert to sequential if performance deteriorates significantly or the transaction reaches the clean-up call date. The transaction allows a maximum of 5% fixed-rate loans, of which a small portion can be unhedged, which has been factored into its analysis. Removal of Originator Adjustment: Fitch has removed the 5% increase to base foreclosure frequency that was previously applied to Athena transactions. The adjustment was initially applied due to the limited length of originator-specific performance data. Athena is a non-bank mortgage lender established in 2017 with operations in Sydney, Australia. Fitch undertook an operational review and found that the operations of the originator and servicer were comparable with market standards. Tight Labour Market to Support Outlook: Portfolio performance is supported by Australia's continued economic growth and tight labour market, despite rapid interest rate hikes during 2022-2023. GDP growth in 2023 was 1.5% and unemployment was 4.1% in April 2024. Fitch expects economic conditions to stabilise in 2024, with a slight deceleration of GDP growth to 1.4% and a marginal increase in unemployment to 4.2%. This reflects Fitch's anticipated effects of China's property downturn and the ongoing impact of recent monetary tightening on consumer spending. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The performance of the transaction may be affected by changes in market conditions and economic environment. Weakening asset performance is strongly correlated with increasing levels of delinquencies and defaults that could reduce the credit enhancement available to the notes. Downgrade Sensitivity Unanticipated increases in the frequency of defaults and loss severity on defaulted receivables could produce loss levels higher than Fitch's base case and are likely to result in a decline in credit enhancement and remaining loss-coverage levels available to the notes. Decreased credit enhancement may make certain note ratings susceptible to negative rating action, depending on the extent of the coverage decline. Hence, Fitch conducts sensitivity analysis by stressing a transaction's initial base-case assumptions. The rating sensitivity section provides insight into the model-implied sensitivities the transaction faces when assumptions - WAFF or WARR - are modified, while holding others equal. The modelling process uses the modification of default and loss assumptions to reflect asset performance in up and down environments. The results should only be considered as one potential outcome, as the transaction is exposed to multiple dynamic risk factors. Athena 2021-2PP Notes: Class A / B / C / D / E / F Current Rating: AAAsf / AAAsf / A+sf / A-sf / BB+sf / Bsf Increase defaults by 15%: AAAsf / AA+sf / A+sf / BBB+sf / BBsf / Bsf Increase defaults by 30%: AAAsf / AAsf / Asf / BBB+sf / BB-sf / less than Bsf Decrease recoveries by 15%: AAAsf / AAAsf / A+sf / A-sf / BB+sf / Bsf Decrease recoveries by 30%: AAAsf / AAAsf / A+sf / A-sf / BB+sf / Bsf Increase defaults by 15% and reduce recoveries by 15%: AAAsf / AA+sf / A+sf / BBB+sf / BBsf / Bsf Increase defaults by 30% and reduce recoveries by 30%: AAAsf / AAsf / Asf / BBB+sf / BB-sf / less than Bsf Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade An upgrade could result from macroeconomic conditions, loan performance and credit losses that are better than Fitch's baseline scenario or sufficient build-up of credit enhancement that would fully compensate for credit losses and cash flow stresses commensurate with higher rating scenarios, all else being equal. Athena 2021-2PP's class A and B notes are at the highest level on Fitch's scale and cannot be upgraded. Upgrade Sensitivity Athena 2021-2PP Notes: Class C / D / E / F Current Rating: A+sf / A-sf / BB+sf / Bsf Reduce defaults by 15% and increase recoveries by 15%: A+sf / Asf / BBB-sf / BB-sf USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. Prior to the transaction closing, Fitch sought to receive a third-party assessment conducted on the asset portfolio information, but none was made available for the transaction. As part of its ongoing monitoring, Fitch reviewed a small targeted sample of the originator's origination files and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the agency about the asset portfolio. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis, according to its applicable rating methodologies, indicates that it is adequately reliable. ESG CONSIDERATIONS The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. BONZA AVIATION: Given Two Months to Find Buyer ---------------------------------------------- News.com.au reports that administrators for grounded budget airline Bonza have been given two months to sell the beleaguered regional carrier, as staff and creditors wait in limbo. More than 300 staff were stood down when Bonza was unexpectedly placed into administration in April, sparking chaos for dozens of airline passengers. According to news.com.au, the Federal Court on May 27 agreed to extend the deadline for the administrators to find a buyer until July 29, with a second creditors meeting to be held. News.com.au relates that barrister James Hutton SC, representing administrators Hall Chadwick, said the administrators were hopeful they could keep Bonza out of liquidation. "Your honour could reasonably anticipate the extension of the administration or the convening period so as to enable an extension of the administration has the very real prospect of significantly improving the position of creditors, including employee creditors," the report quotes Mr. Hutton as saying. Mr. Chadwick told the court that should Bonza be placed in liquidation, some employee entitlements would be covered, but not all -- namely, superannuation, news.com.au relays. News.com.au says the court was told on May 27 the airline's licence may well be its most valuable asset and was tied to the company's flight crew which were stood down. The certificate, which authorises it to operate as a commercial airline, is non-transferable and would likely be forfeited should Bonza enter into liquidation. About Bonza Sunshine Coast-based Bonza was unveiled in October 2021 and its first flight took off in January 2023. It operates Boeing 737-Max-8 planes and is backed by 777 Partners, an investment group based in Miami, Florida. It originally flew 27 routes to 17 destinations but started cutting services during its first six months. Richard Albarran, Kathleen Vouris, Brent Kijurina and Cameron Shaw of Hall Chadwick were appointed Administrators of the Company on April 30, 2024. BUILDLUX PTY: First Creditors' Meeting Set for May 30 ----------------------------------------------------- A first meeting of the creditors in the proceedings of Buildlux Pty Ltd will be held on May 30, 2024 at 11:00 a.m. at Suite 5B, 55 Kembla Street in Wollongong. Stephen John Hundy and Daniel Ivan Cvitanovic of Worrells were appointed as administrators of the company on May 20, 2024. CYAN STONE: First Creditors' Meeting Set for June 3 --------------------------------------------------- A first meeting of the creditors in the proceedings of Cyan Stone Clydesdale 1 Pty Ltd will be held on June 3, 2024 at 11:00 a.m. via Microsoft Teams. Stephen Wesley Hathway of Helm Advisory was appointed as administrator of the company on May 22, 2024. DANFX TRADE: Former Director Daniel Ali Jailed for Fraud -------------------------------------------------------- Daniel Farook Ali, former director of DanFX Trade Pty Ltd, has been sentenced in the Brisbane District Court to seven years and three months imprisonment for fraud, following an investigation by the Australian Securities & Investments Commission (ASIC). On May 23, 2024, Mr. Ali pleaded guilty to five counts of fraud totalling AUD771,303 relating to his misappropriation of funds invested for trading and investment purposes. Mr. Ali was the director of DanFX Trade Pty Ltd, which operated an unlicensed foreign exchange trading business. Between May 2016 and November 2017, Mr. Ali dishonestly used funds provided by investors to purchase a BMW motor vehicle for a personal associate and real estate for himself and his wife, pay personal expenses, and to pay returns to other investors. The Court sentenced Mr. Ali to seven years and three months imprisonment, with eligibility for parole from July 5, 2024. The Court took into account the time Mr. Ali has already spent in custody since November 2021 when imposing the sentence. In sentencing Mr. Ali, Judge Heaton KC said that Mr. Ali's offending involved a level of sophistication, over a period of time, exploiting the trust of his victims, and that his dishonesty contributed to particularly devastating financial positions for those victims. Mr. Ali departed Australia on May 8, 2018, during ongoing civil proceedings commenced against him by ASIC and an ongoing ASIC investigation into his conduct. Following an application by ASIC in 2019, a Queensland magistrate issued a warrant for Mr. Ali's arrest, and in November 2021 he was arrested in Poland. In August 2022, Mr. Ali was extradited to Australia to face the charges, and has been remanded in custody since then. The matter was prosecuted by the Commonwealth Director of Public Prosecutions following a referral from ASIC. In October 2013, Mr. Ali was sentenced to two and half years' imprisonment, suspended after serving six months in prison, in respect of fraud charges brought by the Queensland Director of Public Prosecutions. This conviction was unrelated to ASIC's enforcement action. In November 2017, ASIC permanently banned Mr. Ali from providing financial services or engaging in credit activities as a result of his fraud conviction. Later in November 2017, ASIC obtained orders in the Supreme Court of Queensland appointing Anthony Castley of William Buck as receiver over the assets of Mr. Ali, DanFX Trade and related companies. In May 2018, ASIC successfully applied for the winding up of the scheme operated by Mr. Ali and his related companies. Mr. Castley was appointed by the Court as the receiver of the scheme and the liquidator of the companies. In July 2018, ASIC obtained orders in the Supreme Court of Queensland permanently restraining Mr. Ali from managing companies, after the Court found that he managed an unregistered managed investment scheme without an Australian financial services licence, and managed DanFX Trade and two related companies despite being disqualified due to his prior fraud conviction. MYOB GROUP: S&P Alters Outlook to Negative, Affirms 'B-' ICR ------------------------------------------------------------ S&P Global Ratings revised its outlook on Australia-based MYOB Group Co. Pty Ltd. to negative from stable. At the same time, S&P affirmed its 'B-' issuer credit rating on MYOB and the related issue ratings on the company's A$1 billion equivalent first-lien term loans and A$43.5 million revolving credit facility (RCF). S&P also assigned its 'B-' rating to the company's A$229 million incremental first-lien term loan. The recovery ratings on these facilities are '3', reflecting meaningful (50%-70%; rounded estimate: 50%) recovery prospects in a payment default. The negative outlook reflects heightened refinancing risks for MYOB's first-lien RCF and term loans that mature in 2026. S&P's could lower the ratings if the company is unable to make credible progress on extending its existing first-lien loans over the next six to nine months. S&P said, "The revised outlook reflects MYOB's elevated refinancing task from looming debt maturities in 2026. The company's existing first-lien term loans and RCF mature in 2026. The A$229 million incremental first-lien term loan has a similar tenor. This accentuates the company's refinancing task given its highly leveraged capital structure, and concentrated and shortening debt maturity profile, in our view. We forecast that MYOB's weighted drawn debt maturity will approach two years at the commencement of 2025 in the absence of any debt tenor extension." The term loan transaction will fund MYOB's Flare investment earn-out. The company's A$229 million incremental first-lien term loan will increase its debt burden by about A$59 million net of repaying its second-lien term loans. MYOB will use the total proceeds, its existing cash reserves, and A$76 million of minority stake sale cash proceeds to: (1) fund the earnout of its investment in Flare, a workplace financial services platform; (2) repay the company's existing A$170 million second-lien term loans; and (3) invest in core IT-related improvements. The replacement of the second-lien term loans will lower MYOB's cost of debt and provide flexibility on interest payments (payment-in-kind). Although the second-lien term loan will be repaid, MYOB's overall debt burden will increase. S&P said, "We forecast further revenue growth across MYOB's Enterprise and Financial Services segments, which should underpin overall earnings growth. MYOB has successfully migrated most of its desktop customer base to cloud offerings in recent years. With a high proportion of customers on its cloud platform, recent acquisitions such as Roubler and Flare have expanded the company's software as a service (SaaS) product offering. We expect MYOB's recurring revenue base from its cloud subscriptions to support sustainable earnings. About 93% of its client base is currently subscribed to the company's SaaS products, compared with 25% in 2019. "Free operating cash flow (FOCF) remains at risk from higher interest rates and uncertain refinancing conditions, in our view. FOCF was negative up to 2023 but is showing signs of recovery on incremental earnings and synergies from previous acquisitions. In addition, MYOB should benefit from lower coupon payments. That said, uncertain economic conditions and potentially higher interest rates on future refinancings and debt term extensions could drag on free operating cash flow generation. We expect MYOB to partly manage these risks through implementation of treasury management policies, including interest rate hedging. "The negative outlook on MYOB for the next six to nine months reflects increased refinancing risk of its first-lien debt maturities in 2026, in our view. An inability to refinance its upcoming debt maturities could precipitate liquidity constraints and reflect an unsustainable capital structure. "We could lower the rating if MYOB is unable to maintain adequate liquidity amid material customer churn and loss related to its small and midsize enterprise (SME) customer base. "We could also lower the rating if MYOB is unable to extend its first-lien debt maturities within the next six to nine months, or if we view the company's capital structure as unsustainable." This could occur if: -- Revenue and earnings are weaker than we expect, resulting from the company's inability to extract improved earnings margins from recent acquisitions; -- A material acceleration in customer churn or reduction in new sales that further impairs FOCF; -- Funds from operations (FFO) cash interest coverage further weakens from already anemic levels; or -- The company returns capital to either common or noncommon equity holders. S&P could revise the outlook on MYOB to stable if: -- The company successfully refinances its first-lien facilities; and -- MYOB continues to demonstrate earnings growth that would support improving FFO cash interest coverage and FOCF generation. PROFORM FOOD: First Creditors' Meeting Set for May 30 ----------------------------------------------------- A first meeting of the creditors in the proceedings of Proform Food Group Pty Ltd, Proform Innovation Pty Limited, Proform Gourmet Pty Limited, and Proform Foods Pty Limited will be held on May 30, 2024 at 2:00 p.m. via virtual meeting held by Microsoft Teams. James Douglas Dampney and Gayle Dickerson of KPMG were appointed as administrators of the company on May 22, 2024. TORRENS 2022-1: S&P Raises Class E Notes Rating to BB+ (sf) ----------------------------------------------------------- S&P Global Ratings raised its ratings on four classes of notes issued by Perpetual Trustee Co. Ltd. as trustee for TORRENS Series 2022-1 Trust. At the same time, S&P affirmed its ratings on two classes of notes issued out of the same trust. The rating actions reflect S&P's view of the credit support available, which is sufficient to withstand the stresses it applies. Credit support comprises note subordination for all rated notes, lenders' mortgage insurance covering 7.55% of the pool, and excess spread, if any. The senior notes in the transaction benefit from high levels of credit support, provided by the rated mezzanine and unrated class F notes. The increased credit support to the senior and mezzanine notes since transaction close is driven by the transaction paying principal on a sequential basis. S&P expects the transaction to soon switch to paying principal on a pro-rata basis. This includes the unrated class F notes, which means the percentage of credit support provided to the rated notes will cease to increase. The collateral quality has remained strong, with a weighted-average loan-to-value ratio of around 53.86% and weighted-average loan seasoning greater than four years, which demonstrates the strong repayment history for most borrowers. As of April 30, 2024, 0.53% of the pool is more than 30 days in arrears. There have been no losses to date. Under S&P's cash-flow assumptions and yield analysis, the transaction shows an ability to produce levels of excess spread at their current rating levels. The various mechanisms to support liquidity within the transaction, including an amortizing liquidity facility, principal draws, and an excess revenue reserve, are sufficient to ensure timely payment of interest. Ratings Raised TORRENS Series 2022-1 Trust Class B: to AA+ (sf) from AA (sf) Class C: to A+ (sf) from A (sf) Class D: to BBB+ (sf) from BBB (sf) Class E: to BB+ (sf) from BB (sf) Ratings Affirmed TORRENS Series 2022-1 Trust Class A: AAA (sf) Class AB: AAA (sf) ========= C H I N A ========= BILIBILI INC: Net Loss Widens 21% in Q1 Ended March 31 ------------------------------------------------------ Yicai Global reports that Bilibili Inc. said its net loss widened 21 percent in the first quarter, mainly due to a gain from debt offset a year earlier. Net loss was CNY765 million (USD105 million) in the first three months of the year, the Shanghai-based company said in an earnings report released on May 23, Yicai discloses. Bilibili gained CNY336 million from an offset in the first quarter of last year, and if adjusted for this, the loss narrowed 56 percent year on year. Revenue jumped 12 percent to CNY5.7 billion (USD780 million), driven by improved gross profit margin and user engagement, Bilibili noted. Advertising income surged 31 percent to CNY1.7 billion, while revenue from value-added services rose 17 percent to CNY2.5 billion. According to Yicai, the gross profit margin soared 45 percent in the three months ended March 31 from a year ago and 28 percent from the prior quarter, a seventh consecutive quarter-on-quarter jump. Bilibili's operating cash flow was CNY638 million (USD88.1 million), compared with a cash outflow of CNY630 million a year earlier. The number of daily active users rose 9 percent to 102 million in the first quarter, Bilibili said. About Bilibili Bilibili Inc. (HKG:9626) -- https://www.bilibili.com/ -- provides online entertainment services for the young generations in the People's Republic of China. Its platform offers a range of content, including video services, mobile games, and value-added service, as well as ACG-related comic and audio content. The company's video services include professional user generated videos, occupationally generated videos, live broadcasting, and story mode. Bilibili reported three consecutive annual net losses of CNY3.34 billion, CNY7.21 billion, and CNY7.15 billion for the years ended Dec. 31, 2020, 2021, and 2022. Bilibili reported net loss of CNY4.8 billion in 2023. CHINA EVERGRANDE: PwC Faces Crisis in China Over Audit ------------------------------------------------------ The Financial Times reports that PwC is facing a crisis in China as partners brace for penalties over its audit of collapsed property developer China Evergrande and some clients reconsider their relationship with the accounting firm. China's securities regulator ruled in March that Evergrande had inflated its mainland revenues by almost $80 billion in the two years before the developer defaulted on its debts in 2021, despite PwC giving the accounts a clean bill of health, according to the FT. Partners fear they could face one of the largest fines ever imposed on a Big Four accounting firm in China and other sanctions, prompting infighting among senior figures, according to insiders and retired partners still close to the firm, the FT relays. The FT says PwC enjoyed success on the back of China's property boom, but in the wake of Evergrande's collapse and the property sector slowdown, the firm's future business in the country has been clouded in uncertainty ahead of a leadership change. The situation is "high stakes" for PwC China partners, said Francine McKenna, accounting lecturer at the University of Miami Herbert Business School. "The Chinese firms of the Big Four are also part of global networks, and many multinational firms operating in China count on them for audit, tax and advisory services." The FT relates that partners believe possible regulatory action could eclipse the punishment handed to rival Deloitte last year for a "deficient audit" of China Huarong Asset Management. Deloitte paid a $31mn fine and its operations in Beijing were suspended for three months. "The current partners are braced for impact," said one former PwC partner. Evergrande was one of China's largest developers, and its collapse has sent shockwaves through the economy, the FT notes. Founder Hui Ka Yan faces a lifetime ban from public markets as a result of the March regulatory findings. PwC had audited the company since as early as 2009 before resigning in 2023. Officials at Beijing's finance ministry have discussed possible punishments for the firm's failure to detect the accounting irregularities, including a large monetary penalty, the suspension or closure of some of PwC's regional offices and curbs on auditing state-owned enterprises, the FT relates citing a person briefed on the matter. PwC China had eight central government-controlled SOE audit clients as of 2022, according to finance ministry data, accounting for about 6 per cent of revenue. Regulators reiterated last year that state-owned companies should not typically hire auditors that have received significant fines or other punishment within three years. A director at a mainland-listed state-owned enterprise said its board in recent weeks discussed dropping PwC as its auditor if Beijing imposed heavy penalties, accoriding to the FT. Last Friday [May 17], state-owned insurance group PICC said it had axed PwC as auditor after just three years, hiring EY instead. The uncertainty has extended to PwC clients beyond SOEs, FT says. Shanghai-listed Eastroc Beverage cancelled a shareholder vote scheduled for May 17 that would have reappointed the firm as its auditor, saying it needed to "further verify related matters surrounding the accounting firm," the FT relates. "PwC China is co-operating with its regulators as it relates to any proceedings involving Evergrande," the firm said, declining to comment further. The FT adds Xue Yunkui, professor of accounting at the Cheung Kong Graduate School of Business in Beijing who sits on the boards of several listed companies, said officials were likely to weigh a severe punishment of PwC against the possibility of disrupting capital markets by taking action that destabilises the firm. "Everyone is waiting for guidance from the regulator," he said. PwC has the largest market share in China among the Big Four accounting firms, according to the finance ministry, with revenues of CNY7.9 billion (US$1.1 billion) in 2022. It has almost 800 partners and more than 20,000 staff in mainland China. According to the FT, the business is one of the most important in PwC's global network, which had revenues of $53 billion in its last fiscal year. Raymund Chao, chair of PwC China, is part of the five-person global network leadership team, where he has the title of Asia-Pacific chair. Mr. Chao is also in charge of PwC's business in Hong Kong, where regulators are investigating the audit of Evergrande's Hong Kong-listed parent company. People close to Evergrande's liquidators have said they are considering legal action against PwC, the FT adds. About China Evergrande China Evergrande Group is an integrated residential property developer. The Company, through its subsidiaries, operates in property development, investment, management, finance, internet, health, culture, and tourism markets. China Evergrande Group, the second largest real estate developer in China, and certain of its affiliates sought creditor protection in the United States under Chapter 15 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 23-11332) on Aug. 17, 2023. Evergrande, widely known as the most leveraged company in the world, and its affiliates are asking the U.S. Bankruptcy Court for the Southern District of New York for recognition of foreign proceedings as "foreign main" proceeding under Chapter 15. Evergrande is in the midst of a highly complex restructuring of around $20 billion in offshore debt. In total, the Company has more than $300 billion in liabilities. Evergrande is incorporated in the Cayman Islands as an exempted company with limited liability, with its principal place of business located at 15th Floor, YF Life Centre, 38 Gloucester Road, Wanchai, Hong Kong. It is subject to a restructuring proceeding entitled In the Matter of China Evergrande Group, concerning a scheme of arrangement between Evergrande and certain Scheme Creditors pursuant to the relevant provisions of the Hong Kong Companies Ordinance (Chapter 622 of the Laws of Hong Kong), currently pending before the High Court of Hong Kong (Case Number HCMP 1091/2023. Affiliate Tianji Holding Limited is incorporated in Hong Kong as a limited liability company, with its principal place of business located at 17th Floor, One Island East, Taikoo Place, 18 Westlands Road, Quarry Bay, Hong Kong. Tianji is subject to a restructuring proceeding entitled In the Matter of Tianji Holding Limited, concerning a scheme of arrangement between Tianji and certain Scheme Creditors, pursuant to the relevant provisions of the Hong Kong Companies Ordinance and currently pending before the Hong Kong Court (Case Number HCMP 1090/2023). Affiliate Scenery Journey Limited is incorporated in the British Virgin Islands as a limited liability company, with its principal place of business located at 2nd Floor Water's Edge Building, Wickham's Cay II, Road Town, Tortola, BVI. Scenery Journey is subject to a restructuring proceeding entitled In the Matter of Scenery Journey Limited, concerning a scheme of arrangement between Scenery Journey and certain Scheme Creditors, pursuant to section 179A of the BVI Business Companies Act, 2004, and currently pending before the High Court of the Eastern Caribbean Supreme Court (Case Number BVIHCOM 2023/0076). U.S. Bankruptcy Judge Michael E Wiles presides over the Chapter 15 proceedings. Sidley Austin is the Hong Kong Counsel to Evergrande and Tianji. Maples BVI is the British Virgin Island Counsel to Scenery Journey. On Jan. 29, 2024, a Hong Kong court ordered the liquidation of China Evergrande Group. CHINA EVERGRANDE: Unit Liquidators Strike Stake Sale Deal --------------------------------------------------------- Reuters reports that shares of China Evergrande New Energy Vehicle Group more than doubled on May 27 trade resumed after the company said liquidators had agreed on behalf of key shareholders to sell a stake in the electric vehicle (EV) maker. Shares of embattled developer China Evergrande's EV unit soared as much as 113% to HK$0.81, their highest since September 22, becoming the top gainer on the Hong Kong bourse, and last stood up 79%, following the May 17 trade halt, Reuters discloses. The non-binding deal by liquidators acting for China Evergrande Group, Evergrande Health Industry and Acelin Global provides for a third-party buyer to take a stake of 29% in the unit, with an option for 29.5% more, the EV unit said on May 26, Reuters relays. The three collectively hold 58.5% of the cash-strapped EV unit, whose factory in the northern city of Tianjin stopped production at the start of 2024. According to Reuters, the EV unit said the term sheet also mentioned that the potential purchaser would provide a line of credit to fund its operation and business development. Last week, China Evergrande New Energy Vehicle said its unit had received a letter from local administrative bodies demanding repayment of CNY1.9 billion ($262 million) in subsidies and incentives, Reuters adds. About China Evergrande China Evergrande Group is an integrated residential property developer. The Company, through its subsidiaries, operates in property development, investment, management, finance, internet, health, culture, and tourism markets. China Evergrande Group, the second largest real estate developer in China, and certain of its affiliates sought creditor protection in the United States under Chapter 15 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 23-11332) on Aug. 17, 2023. Evergrande, widely known as the most leveraged company in the world, and its affiliates are asking the U.S. Bankruptcy Court for the Southern District of New York for recognition of foreign proceedings as "foreign main" proceeding under Chapter 15. Evergrande is in the midst of a highly complex restructuring of around $20 billion in offshore debt. In total, the Company has more than $300 billion in liabilities. Evergrande is incorporated in the Cayman Islands as an exempted company with limited liability, with its principal place of business located at 15th Floor, YF Life Centre, 38 Gloucester Road, Wanchai, Hong Kong. It is subject to a restructuring proceeding entitled In the Matter of China Evergrande Group, concerning a scheme of arrangement between Evergrande and certain Scheme Creditors pursuant to the relevant provisions of the Hong Kong Companies Ordinance (Chapter 622 of the Laws of Hong Kong), currently pending before the High Court of Hong Kong (Case Number HCMP 1091/2023. Affiliate Tianji Holding Limited is incorporated in Hong Kong as a limited liability company, with its principal place of business located at 17th Floor, One Island East, Taikoo Place, 18 Westlands Road, Quarry Bay, Hong Kong. Tianji is subject to a restructuring proceeding entitled In the Matter of Tianji Holding Limited, concerning a scheme of arrangement between Tianji and certain Scheme Creditors, pursuant to the relevant provisions of the Hong Kong Companies Ordinance and currently pending before the Hong Kong Court (Case Number HCMP 1090/2023). Affiliate Scenery Journey Limited is incorporated in the British Virgin Islands as a limited liability company, with its principal place of business located at 2nd Floor Water's Edge Building, Wickham's Cay II, Road Town, Tortola, BVI. Scenery Journey is subject to a restructuring proceeding entitled In the Matter of Scenery Journey Limited, concerning a scheme of arrangement between Scenery Journey and certain Scheme Creditors, pursuant to section 179A of the BVI Business Companies Act, 2004, and currently pending before the High Court of the Eastern Caribbean Supreme Court (Case Number BVIHCOM 2023/0076). U.S. Bankruptcy Judge Michael E Wiles presides over the Chapter 15 proceedings. Sidley Austin is the Hong Kong Counsel to Evergrande and Tianji. Maples BVI is the British Virgin Island Counsel to Scenery Journey. On Jan. 29, 2024, a Hong Kong court ordered the liquidation of China Evergrande Group. CHINA VANKE: Fitch Lowers LongTerm IDR to 'BB-', Outlook Negative ----------------------------------------------------------------- Fitch Ratings has downgraded Chinese homebuilder China Vanke Co., Ltd.'s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) to 'BB-', from 'BB+'. The Outlook is Negative. Fitch also downgraded the Long-Term IDR on China Vanke's wholly owned subsidiary, Vanke Real Estate (Hong Kong) Company Ltd (Vanke HK), to 'B+', from 'BB', and downgraded Vanke HK's senior unsecured rating and the rating on the outstanding senior notes to 'B+' with a Recovery Rating of RR4, from 'BB'. The ratings have been removed from Rating Watch Negative. The downgrade reflects a reduction in China Vanke's liquidity buffer following the weaker-than-expected sales performance in the year-to-date. Fitch believes the sustained sales deterioration has affected China Vanke's non-bank funding access, and the company will increasingly rely on its cash on hand, asset disposals and secured onshore bank financing to address its sizable debt maturities in 2024 and 2025. The Negative Outlook reflects the risks of the company's and industry's sales failing to stabilise despite intensifying government policy support and affecting the company's cash generation and asset recycling plans. KEY RATING DRIVERS Reduced Financial Flexibility: Fitch believes China Vanke has sufficient liquidity to cover its short-term debt repayment needs. This is despite the company's liquidity ratio declining to 1.0x as of 31 March 2024. (2023: 1.5x) Fitch believes the deterioration in China Vanke's sales performance, amid industry pressure, has affected the company's cash generation and its non-bank funding access. Fitch now expects China Vanke to increase its secured bank borrowings to address capital-market debt repayments in 2024-2025. Transition to Secured Funding: Historically, Vanke enjoyed exceptional banking relationships, with the headquarters often having direct access to unsecured bank borrowings. Fitch believes China Vanke's onshore bank funding access remains intact, supported by its CNY100 billion of investment properties, which are booked at cost value. The company said in May that it obtained CNY9 billion in onshore bank borrowings secured by its property project companies. Fitch believes China Vanke has sizable unencumbered development property assets in Tier 1 and 2 cities that can also support its secured funding access. However, this gradual transition from unsecured to secured borrowings may constrain China Vanke's financial flexibility in the long run. Sales and Cashflow Stabilisation Key: China Vanke reported operating cash outflow of CNY9.4 billion in 1Q24 due to weak sales and significant working capital outflow. Management expects operating cash flow to stabilise over the rest of 2024 as completion-related construction slows. Fitch has revised down its cashflow forecast and expects China Vanke to generate neutral to negative free cash flow in 2024 and 2025. This assumes sales stabilise from 2Q24 onwards, 2024 sales fall 30% to CN263 billion, and there are no material land acquisition outflows in 2024 and 2025. Fitch believes a stabilisation in Vanke's sales and cash generation is crucial to support the company's ratings. Uncertain Policy Impact: China Vanke's 42% yoy decline in total contracted sales in 4M24 was broadly in line with major developers' performance. The government has intensified policy support recently, but there are uncertainties about impact of these policies in stabilising industry sales. Significant Capital Market Maturities: Fitch believes the company will mainly rely on cash on hand and new secured loans to repay its sizable capital market debt maturities maturing in 2024. Fitch believes potential asset disposals may aid its liquidity and repayment of its large capital-market debt maturities in 2025, although this is not included in its model estimates. Subsidiary's Ratings Notched Down: Vanke HK is China Vanke's sole offshore financing platform. The subsidiary comes under the "stronger parent" path in its Parent and Subsidiary Linkage Rating Criteria. The ratings of Vanke HK are rated one notch below that of its parent, based on its assessment of 'Medium' legal, strategic and operational incentives for the parent to provide support. DERIVATION SUMMARY China Vanke's liquidity profile is weaker than Longfor Group Holdings Limited (BB+/Negative). China Vanke's ratings are constrained by its liability profile and funding access amid substantial and rising capital-market debt maturities in 2024 and 2025. The liquidity buffer would be likely to decline without effective market access. KEY ASSUMPTIONS Fitch's Key Assumptions within Its Rating Case for the Issuer: - Sales to drop by 30% in 2024 and further 5% in 2025 (2023: 10% drop). - Gross profit margin of 12% (2023: 15%) and EBITDA margin (after Land Appreciation Tax) of 5%-6% (2023: 8%) in 2024-2026. - Construction cash outflow at 65%-75% of sales proceeds in 2024 and 2025. - Land acquisition outflow declining to below 5% of sales proceeds in 2024-2025, compared with 20%-25% in 2023. RECOVERY ANALYSIS The recovery analysis assumes that Vanke HK would be liquidated in bankruptcy. The liquidation value approach usually results in a much higher value than the going concern approach, given the nature of homebuilding. Fitch has assumed a 10% administrative claim. Liquidation Approach The liquidation estimate reflects Fitch's view of the value of balance-sheet assets that can be realised in sale or liquidation processes conducted during a bankruptcy or insolvency proceeding and distributed to creditors. - 50% advance rate applied to net inventory, net of margin-adjusted customer deposits. Fitch generally apply higher rates to completed properties than properties under development (PUD). However, there was no breakdown of the inventory for Vanke HK, Fitch follows the 50% that Fitch generally uses for PUD. - 72% advance rate applied to net JV assets. This largely represents Vanke HK's equity stake in GLP Holdings, L.P. (GLP), which was CNY17 billion at book value. Based on the late 2022 transaction where China Vanke sold a stake in GLP to a third party, Vanke HK's remaining stake is valued at CNY31 billion. If Fitch assumes 50% advance rate based on this transaction value and 50% on other JV assets, this represents 72% advance rate based on book value of JV assets. - 50% advance rate applied to property, plant and equipment, which mainly consists of land and buildings, the value of which is insignificant. - 0% advance rate applied to excess cash. China's homebuilding regulatory environment means that available cash, including pre-sales that are regulated as cash, is typically prioritised for project completion, including payment for trade payables. Net payables (trade payables - available cash) are included in the debt waterfall ahead of secured debt. However, Fitch does not assume that available cash in excess of outstanding trade payables is available for other debt-servicing purposes and therefore apply an advance rate of 0%. Vanke HK's bank loans are offshore unsecured bank loans that rank pari passu with its offshore bonds. The allocation of value in the liability waterfall results in a Recovery Rating of 'RR3' for the offshore senior unsecured debt. The Recovery Rating for senior unsecured debt is capped at 'RR4' because, under Fitch's Country-Specific Treatment of Recovery Ratings Criteria, China falls into Group D for creditor friendliness, and instrument ratings of issuers with assets in this group are subject to a soft cap at the issuer's IDR and Recovery Rating of 'RR4'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade: - Further weakening in operating cash flow and/or liquidity, which may be caused by weaker-than-expected sales - Evidence of weakening access to onshore bank funding For Vanke HK, the rating could be downgraded if there is a weakening of incentives for China Vanke to support Vanke HK. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade: Positive action is unlikely in the near term, as the ratings are on Negative Outlook. LIQUIDITY AND DEBT STRUCTURE Weakened Liquidity: China Vanke reported CNY83 billion of cash at end-March 2024, including regulated pre-sale funds, while short-term debt was CNY84 billion, excluding asset-backed securities. China Vanke announced that it obtained new secured bank loans of CNY9.1 billion in May. Fitch believes the group will use its cash on hand and additional onshore bank loans to repay its capital-market debt maturing in a year, which amounts to CNY23 billion. ISSUER PROFILE China Vanke is one of China's top-three developers by contracted sales with a nationwide footprint. Its main businesses are real-estate development and property services. Vanke HK is China Vanke's main offshore fundraising entity. SUMMARY OF FINANCIAL ADJUSTMENTS Fitch revalued Vanke HK's investment in GLP based on the latest transaction value, which resulted in an increase in joint-venture investment value of CNY19 billion in 2022 and CNY14 billion in 2023. ESG CONSIDERATIONS The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- China Vanke Co., Ltd. LT IDR BB- Downgrade BB+ LC LT IDR BB- Downgrade BB+ Vanke Real Estate (Hong Kong) Company Ltd LT IDR B+ Downgrade BB senior unsecured LT B+ Downgrade RR4 BB KAISA GROUP: Liquidation Hearing Adjourned to June 24 ----------------------------------------------------- Reuters reports that a Hong Kong court on May 27 adjourned a hearing on a petition seeking the liquidation of Kaisa Group until June 24, giving the embattled Chinese developer some respite as it works on its debt restructuring plan. Reuters relates that the Shenzhen-based developer has been working to restructure its offshore debt for two years after defaulting on $12 billion in offshore debt in late 2021. Reuters says the matter before the court concerns the non-payment of 2023 notes with an outstanding principal of $750 million. Citicorp International, the trustee of a major group of bondholders, has been acting as petitioner since March after a former petitioner withdrew. The reason for the adjournment was not disclosed. A spokesperson for Kaisa said they were discussing specific terms of the restructuring plan with the bondholder group. Kaisa is China's second-largest issuer of offshore debt among property developers after China Evergrande Group and was the first Chinese property developer to default on its dollar bonds in 2015, Reuters notes. China Evergrande was ordered to liquidate by a Hong Kong court earlier this year and a growing list of companies in the sector, including Country Garden are fighting against liquidation petitions filed by creditors. In March, Kaisa reported a net loss of CNY19.7 billion ($2.7 billion) for 2023, roughly 50% larger than its loss a year earlier, Reuters discloses. It had total liabilities of CNY226 billion at the end of last year and total assets of CNY233 billion. Reuters adds that the company said at the time it would continue to work on delivering a holistic debt restructuring plan as soon as practicable. About Kaisa Group Kaisa Group Holdings Limited is an integrated real estate company. The Group focuses on urban development and operation. Kaisa Group's real estate business covers the planning, development and operation of large-scale residential properties and integrated commercial properties. As reported in the Troubled Company Reporter-Asia Pacific in July 2023, Kaisa Group said on July 10 a winding-up petition has been filed against it in a Hong Kong court in relation to CNY170 million (US$23.50 million) non-payments on onshore bonds. According to Reuters, Kaisa said the petition was filed by Broad Peak Investment Pte Advisers Ltd at the Hong Kong High Court on July 6, and the issuer of the yuan bonds is its wholly-owned subsidiary, Kaisa Group (Shenzhen) Co Ltd. Kaisa has been working on a debt restructuring for two years after defaulting its $12 billion of offshore debt in late 2021, Reuters said. SHANDONG ENERGY: Moody's Affirms 'Ba1' CFR, Alters Outlook to Neg. ------------------------------------------------------------------ Moody's Ratings has affirmed the Ba1 corporate family ratings of Shandong Energy Group Company Limited (Shandong Energy) and Yankuang Energy Group Company Limited (Yankuang Energy). In addition, Moody's has affirmed the b1 Baseline Credit Assessment (BCA) of Shandong Energy and ba3 BCA of Yankuang Energy. Moody's has also affirmed the Ba1 senior unsecured rating of the bond issued by Yankuang Group (Cayman) Limited and guaranteed by Shandong Energy, as well as the Ba1 senior unsecured rating of the bond issued by Yancoal Int'l Resources Development Co., Ltd and guaranteed by Yankuang Energy. At the same time, Moody's has revised the outlook for all ratings to negative from stable. "The negative outlook reflects Moody's expectation that Shandong Energy's leverage will stay high for its BCA, which is driven by its continued capital spending amid coal price volatilities," says Daniel Zhou, a Moody's Assistant Vice President and Analyst. The rating affirmation reflects Moody's expectation that Shandong Energy will maintain its large scale with diversified coal mining assets, as well as continued funding access. It also reflects Moody's expectation that the company will continue to receive a strong level of support from the Shandong provincial government, which is reflected in the three notches of rating uplift. Yankuang Energy's negative outlook follows that of its parent Shandong Energy, due to their close linkage in view of Shandong Energy's majority ownership and management oversight of Yankuang Energy, which is also Shandong Energy's major subsidiary that accounts for a significant portion of the group's profit and assets. RATINGS RATIONALE Shandong Energy's Ba1 CFR incorporates its BCA of b1 and a three-notch uplift, reflecting Moody's assessment of the strong likelihood of support from, and a high level of dependency on, the Shandong government and ultimately the Government of China (A1 negative), in times of stress. Shandong Energy's b1 BCA primarily reflects the company's large scale and diversified coal mining assets, and its low-cost mining operations in Shandong province and Australia (Aaa stable). At the same time, Shandong Energy's BCA is constrained by the company's high leverage; exposure to long-term carbon transition risks; exposure to high coal price volatility; substantial capital spending needs to fund multiple large projects and the resultant project execution risks. Moody's expects Shandong Energy's adjusted debt/EBITDA to stay high at 6x-7x over the next 12-18 months after rising to 5.9x in 2023 from 3.9x in 2022. These metrics are weak for Shandong Energy's b1 BCA. Shandong Energy will continue its capital spending in strategic projects in coal mines, the chemical sector and renewable energy. While they will gradually bring enhance its business diversification and importance to the government, Shandong Energy's debt will remain elevated due to funding needs and an increasing guarantee of project loans for the sizable Yulong Petrochemical Project, an equity investment. Specifically, Moody's projects Shandong Energy's adjusted debt will rise to around RMB500 billion over the next 12-18 months after growing by 12% to RMB476 billion in 2023. Moody's forecasts Shandong Energy's adjusted EBITDA will reduce slightly over the next 12-18 months after dropping by 27% to RMB81 billion in 2023. This is primarily driven by a normalization of the company's average coal selling prices from a peak level in 2022, considering globally stable supplies and easing demand in China, which offsets a slight increase in coal sales volume and moderation in production costs. Moody's expects Shandong Energy's new investments to gradually generate incremental earnings after they commence operations, potentially easing the pressure on leverage. However, uncertainties remain on the timing and magnitude of contribution given the execution risks. Moody's support assumption reflects Shandong Energy's 100% ownership by the Shandong government; the importance of Shandong Energy's mining assets to both the Chinese central and Shandong provincial governments by safeguarding energy security; the company's significance to Shandong provincial government in terms of economic contribution and large workforce; the track record of government support to the company; and the Chinese government's ability to support Shandong Energy through the Shandong provincial government. Moody's high dependency assumption reflects the fact that Shandong Energy and the central government are exposed to common political and economic event risks. Yankuang Energy's Ba1 CFR incorporates its ba3 BCA and a two-notch uplift based on likely strong support from, and a high level of dependency on, the Shandong government and ultimately the Government of China, in times of stress. Moody's support assessment reflects Yankuang Energy's controlling government ownership through Shandong Energy, as well as the strategic importance of Yankuang Energy's mining assets to both the Chinese and Shandong provincial governments, given the company's significance to China's coal mining industry. Yankuang Energy's BCA is supported by its diversified coal mining assets and related infrastructure; as well as the low-cost mining operations in Shandong province and Australia through its subsidiary, Yancoal Australia Ltd. Yankuang Energy's BCA is constrained by its moderate financial profile, exposure to coal price volatilities as a single-commodity producer and exposure to carbon transition risk in the medium to long term. Moody's expects Yankuang Energy's adjusted debt/EBITDA to rise to around 3.0x over the next 12-18 months from 2.6x in 2023 and 1.3x in 2022. This reflects the moderating coal price, which is partly balanced by incremental profit contribution through the new projects acquired from its parent. Such metrics remain appropriate for its ba3 BCA. Both Shandong Energy's and Yankuang Energy's liquidity profiles are weak. Their cash on hand and projected operating cash flow are insufficient to cover their respective debt maturities and expected capital spending over the next 12 months. Nevertheless, Shandong Energy's and Yankuang Energy's refinancing risks are manageable over the next 12-18 months because of their good access to domestic funding markets, backed by their state-owned status. Shandong Energy's and Yankuang Energy's ratings also consider the following environmental, social and governance (ESG) risks. Both companies face elevated environmental risks associated with the coal mining industry, including carbon transition risks, as countries reduce their reliance on coal power. They are also exposed to high social risks associated with the coal mining industry, including health and safety and responsible production. With respect to governance, Shandong Energy has limited information transparency on its investment strategy and financial policy, which have been materially influenced by the Shandong government given the government's ultimate control and full ownership over the company. Yankuang Energy's governance-related risks reflect mainly its historically large acquisitions through cycles. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's could revise Shandong Energy's outlook to stable if its financial profile improves through lower debt leverage via stronger cash flow generation and a more disciplined capital spending. Credit metrics indicative of a stable outlook include adjusted debt/EBITDA below 6.5x on a sustained basis. Moody's could downgrade Shandong Energy's rating if the likelihood of government support decreases; or the company's BCA further weakens. Shandong Energy's BCA would be downgraded if the company's financial profile is unlikely to improve due to debt-funded expansion, substantial disruption in its core mining operations, or material execution risks arising from its investment projects. Credit metrics indicative of downward pressure on the BCA include adjusted debt/EBITDA above 6.5x over a prolonged period, with little likelihood of deleveraging over the next 6 to 12 months. Yankuang Energy's outlook could return to stable if Shandong Energy's outlook is revised to stable, and Yankuang Energy maintains a stable credit profile. Moody's would downgrade Yankuang Energy's rating if Shandong Energy's rating is downgraded. A weakening of government support could also pressure Yankuang Energy's rating. Yankuang Energy's BCA could be upgraded if the company improve its business and financial profile and its adjusted debt/EBITDA trends below 2.0x-2.5x on a sustained basis. Yankuang Energy's BCA could be downgraded if the company's business and financial profile weakens and its leverage rises above 4.0x for a prolonged time. A change in Yankuang Energy's BCA alone would not have an immediate impact on its Ba1 rating, given the company's close linkage with its parent Shandong Energy. The methodologies used in these ratings were Mining published in October 2021. Shandong Energy Group Company Limited is the largest coal mining group in Shandong province and the third-largest coal mining group in China in terms of coal production volume in 2023. The company is also involved in other businesses, including high-end coal chemical, logistics and trading, power generation, machinery manufacturing, financial services and others. Shandong Energy is ultimately owned by the Shandong government; it is directly held by the Shandong State-owned Assets Supervision and Administration with a 70% holding share. Shandong Guohui Invt Hldg Grp Co., Ltd. (Baa2 stable) and the Shandong Caixin Asset Management Co., Ltd hold the remaining 20% and 10% stakes in the company, respectively. In 2023, Shandong Energy produced around 270 million tons of raw coal, reported revenue of RMB866 billion and assets of RMB1,002 billion. Yankuang Energy Group Company Limited listed on the Shanghai and Hong Kong stock exchanges in 1998. As of end-2023, it was 54.69% owned by Shandong Energy Group Company Limited. As of December 2023, Yankuang Energy owned and operated various coal mines across China and Australia, including in Shandong and Shaanxi provinces and the Inner Mongolia Autonomous Region in China, as well as in the Australian states of Queensland, New South Wales and Western Australia. In 2023, Yankuang Energy produced 110 million tons of raw coal, reported revenue of RMB118 billion and assets of RMB414 billion. ZHONGSHAN TORCH: Moody's Cuts CFR to B1, Outlook Remains Negative ----------------------------------------------------------------- Moody's Ratings has downgraded Zhongshan Torch Public Assets Mgmt Gp Co Ltd's corporate family rating to B1 from Ba2 and lowered its Baseline Credit Assessment (BCA) to b2 from ba3. Moody's has also maintained the negative outlook. "The rating downgrade reflects Moody's expectation that Zhongshan Torch's credit metrics will over the next 12-18 months deteriorate to levels that will not be commensurate with its previous BCA and ratings, driven by its aggressive expansion amid an uncertain operating environment," says Daniel Zhou, a Moody's Assistant Vice President and Analyst. "The negative outlook reflects the uncertainties over Zhongshan Torch's ability to improve its financial metrics amid its increased exposure to commercialized industries and associated business risks," adds Zhou. RATINGS RATIONALE Zhongshan Torch's B1 CFR incorporates the company's b2 BCA and a one-notch rating uplift to reflect Moody's assessment of moderate support from, and the company's high level of dependence on, the Zhongshan municipal government and ultimately the Government of China (A1 negative). Zhongshan Torch's leverage, as measured by adjusted net debt/EBITDA, climbed to around 9.5x in 2023 from 5.3x for the 12 months ended June 2023, mainly driven by a sharp reduction in cash as the company used cash to fund its business expansion amid its weakened operating cash flow. Moody's forecasts Zhongshan Torch's leverage will rise further along with its growing debt-funded investments in commercialized industries, particularly in residential development projects. This will continue to raise its operating and financial risks amid the challenging market environment, despite a likely gradual incremental profit contribution from the new projects. Specifically, the rating agency expects Zhongshan Torch's adjusted net debt/EBITDA to rise to 10.5x-11.0x over the next 12-18 months. Its EBITDA/interest expense will also deteriorate over the same period to 1.8x-2.0x from 2.5x in 2023. These projected metrics will position the company at the single-B rating level. Moody's assessment of Zhongshan Torch's credit metrics considers the pro-rata consolidation of Jonjee Hi-Tech Industrial And Commercial Holding Co., Ltd. from the second half of 2023, after Zhongshan Torch became Jonjee's largest shareholder. Zhongshan Torch's liquidity will likely remain weak because of its rising working capital needs for its residential development projects and its high refinancing needs over the next 12-18 months. Its close relationship with the Zhongshan municipal government and continued access to domestic bank funds should ease its refinancing risk. Moody's assessment of moderate support for the company, and the one-notch uplift incorporated in its rating due to support from the Zhongshan municipal government and ultimately the Chinese central government, reflect (1) Zhongshan Torch's 100% ownership and the close management oversight by the Zhongshan municipal government; (2) the company's role in developing and operating in the National Zhongshan Torch High-tech Industrial Development Zone (Torch Development Zone), which supports the city's economic growth; (3) the reputational risk to the Zhongshan municipal government if Zhongshan Torch defaults; and (4) the company's history of receiving government support. Zhongshan Torch's high level of dependence on the Chinese government reflects the common political and economic event risks to which both entities are exposed. In terms of governance risks, Moody's has considered the company's heightened financial risks and weak track record and credibility, driven by its aggressive debt-funded investments in commercialized industries. The company also has concentrated ownership by the Zhongshan municipal government as well as limited corporate transparency. These risks are tempered by its state-owned enterprise status, which helps the company maintain access to domestic funding and obtain government support. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade of Zhongshan Torch's rating is unlikely, given the negative outlook. However, Moody's could revise the outlook to stable if Zhongshan Torch's BCA strengthens, indicated by a return to prudent financial and investment management and an improvement in its credit metrics and liquidity. Credit metrics supportive of an outlook revision to stable include adjusted net debt/EBITDA under 10.0x and EBITDA/interest above 2.0x, both on a sustained basis. Moody's could downgrade the rating if (1) Zhongshan Torch's BCA further deteriorates, or (2) the likelihood of government support for the company decreases. A lowering of Zhongshan Torch's BCA is likely if the company's business and financial profiles significantly deteriorate, or if it continues to adopt an aggressive expansion strategy. Credit metrics indicative of downward pressure on the BCA include adjusted net debt/EBITDA rising above 10.0x-11.0x and EBITDA/interest coverage falling below 1.5x. The methodologies used in these ratings were REITs and Other Commercial Real Estate Firms published in February 2024. Zhongshan Torch is 100% indirectly owned by the Zhongshan municipal government via the Administration Committee of the Torch Development Zone. It is the sole operator in the Torch Development Zone to promote business in the area; develop, operate and manage different types of properties and ancillary facilities in the area; and consolidate state-owned enterprises in the development zone. ========= I N D I A ========= A.R.T. FABRICATION: CARE Keeps B- Debt Rating in Not Cooperating ---------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of A.R.T. Fabrication Industries Private Limited (AFIPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 7.17 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Rationale and key rating drivers CARE Ratings Ltd. had, vide its press release dated March 17, 2023, placed the rating(s) of AFIPL under the 'issuer non-cooperating' category as AFIPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. AFIPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated January 31, 2024, February 10, 2024, February 20, 2024. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Haryana based A.R.T Fabrication Industries Private Limited (AFIPL) was incorporated in August, 1995 as a private limited company and is currently being managed by Mr. Jatinder Singh Grover and Mr. Harinder Singh Grover. The company is engaged in the manufacturing of crane parts such as bumper of cranes, compactor chassis, counters weights, frames, etc. other associated sheet metal components and electricity panels at its manufacturing facility located in Faridabad, Haryana. APLAB LIMITED: ICRA Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------- ICRA has kept the long-term and short-term rating of Aplab Limited in the 'Issuer Not Cooperating' category. The ratings are denoted as [ICRA]D/[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term- 12.80 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category Long-term- 13.20 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Term Loan 'Issuer Not Cooperating' Category Short-term- 11.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category Short-term 36.00 [ICRA]D; ISSUER NOT COOPERATING; Non-fund Rating continues to remain under based Others 'Issuer Not Cooperating' Category As part of its process and in accordance with its rating agreement with Aplab, ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite multiple requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information and in line with the aforesaid policy of ICRA, the rating has been continued to the "Issuer Not Cooperating" category. The rating is based on the best available information. Aplab, incorporated in 1964, manufactures electrical and electronic equipment and devices. The company has multiple product divisions, including test and measurement instruments, power conversion and controls, uninterruptible power supply (UPS) systems, and banking and retail automation. Aplab is a publicly listed company on the Bombay Stock Exchange (BSE) and has sales and support offices in over 50 cities across India. Company is managed by Mr. P.S Deodhar and Mrs. Amrita Deodhar and the independent directors Mr. Shailendra Hajela and Mr. Sanjay. ARSHIYA LIMITED: Insolvency Resolution Process Case Summary ----------------------------------------------------------- Debtor: Arshiya Limited Registered Address: 205 & 206 (Part), 2nd Floor, Ceejay House F-Block, Shiv Sagar Estate Dr. Annie Besant Road Worli, Mumbai - 400018 India Books of Account Address: 302, Ceejay House Level-3 Shivsagar F-Block Dr. Annie Besant Road Worli, Mumbai - 400018 India Insolvency Commencement Date: April 23, 2024 Court: National Company Law Tribunal, Mumbai Bench Estimated date of closure of insolvency resolution process: October 20, 2024 Insolvency professional: Nitin Vishwanath Panchal Interim Resolution Professional: Nitin Vishwanath Panchal A-203, Suraj Eleganza-I CHS Pitamber Lane, Near Dena Bank Mahim (West), Mumbai City 400016 Email: nitin20768@gmail.com -- and -- 1221, Maker Chamber V Nariman Point, Mumbai - 400021 Email: cirp.arshiyalimited@gmail.com Last date for submission of claims: May 7, 2024 ASHIANA DWELLINGS: ICRA Keeps D Debt Rating in Not Cooperating -------------------------------------------------------------- ICRA has kept the Optionally Convertible Debenture of Ashiana Dwellings Private Limited (ADPL) in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Optionally 64.81 [ICRA]D; ISSUER NOT COOPERATING; Convertible Rating continues to remain under Debentures 'Issuer Not Cooperating' category As part of its process and in accordance with its rating agreement with ADPL, ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite multiple requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information and in line with the aforesaid policy of ICRA, the rating has been continued to the "Issuer Not Cooperating" category. The rating is based on the best available information. ADPL is an SPV of Ashiana Homes Private Limited (AHPL), incorporated in 2014 for the purpose of development of Ashiana Mulberry project. AHPL, which holds majority stake in the company, was incorporated in 1987, with presence mostly in north India, and has developed more than 3.4 msf (million square feet) of area. Ashiana Mulberry is a residential project located in Sector 2, Sohna, Gurugram with total saleable area of 0.95 msf. ASHIANA LANDCRAFT: CARE Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of Ashiana Landcraft Realty Private Limited (ALRPL) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Non Convertible 29.01 CARE D; ISSUER NOT COOPERATING Debentures Rating continues to remain under ISSUER NOT COOPERATING category Non Convertible 81.00 CARE D; ISSUER NOT COOPERATING Debentures Rating continues to remain under ISSUER NOT COOPERATING category Optionally 10.00 CARE D; ISSUER NOT COOPERATING Fully Convertible Rating continues to remain Debenture under ISSUER NOT COOPERATING category Rationale and key rating drivers CARE Ratings Limited (CARE Ratings) had, vide its press release dated June 11, 2019, placed the rating of ALRPL under the 'issuer non-cooperating' category as ALRPL had failed to provide information for monitoring of the rating. ALRPL continues to be non-cooperative despite repeated requests for submission of information through e-mails dated April 6, 2024, April 16, 2024 and April 26, 2024. In line with the extant SEBI guidelines, CARE Ratings has reviewed the rating on the basis of the best available information which however, in CARE Ratings' opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Analytical approach: Standalone Detailed description of the key rating drivers: At the time of last rating on May 23, 2023, the following were the rating strengths and weaknesses: Key weaknesses * Recent delays in debt servicing: There were delays in servicing of debt obligations on the OCD and bank facilities. The company had delayed the monthly instalment due for the month of March 2019 and the interest payment due on OCD on March 31, 2019. This is on the account of tight liquidity position of the company due to slower sales momentum for its ongoing projects. * Project execution risk: The company is developing a residential group housing project in Sector 88-A, Gurgaon. The total estimated cost of the project is INR1,038 cr which will be funded through promoter's contribution of INR59.00 cr, debt of INR423 cr and the rest through customer advances. As on December 31, 2018, the promoters have brought in INR52.6 cr, Outstanding debt of INR333 cr availed from PNBHFL and the Piramal group. As on March 31, 2018, the company has incurred INR610 cr out of the total project cost of INR1,038 cr that is, around 57% of the total project cost as on December 31, 2018 (49% upto March 31, 2018). However, the spending on construction remains low with total expenditure of INR247 cr out of the total INR498 cr on the construction and administration portion, that is, 50% of the total construction and administration cost. As significant portion of the cost is yet to be incurred; the project is exposed to execution risk. * Off take risk: Out of total saleable area of the project of 17.24 lsf, For Phase-1 (saleable area of 8.42 lsf), the company has sold 5.45 lsf of area that is around 64% (61% upto March 31, 2018) for sale value of INR351 cr till December 31, 2018. The sales has remained slow due to the slowdown in the real estate market. In the 12 months ending February 2019, the company has been able to generate collections of INR20 cr. With significant portion of the project yet to be sold, the company remains exposed to project off-take risk. * Subdued industry scenario: The industry has witnessed muted housing demand during recent past. Furthermore, the impact of Real Estate Regulation Act, 2016 remains to be seen on the developers. It is expected that the developers will have to bring about operational transformation in their business models to comply with RERA requirements. Key strengths * Experienced promoters with track record of project execution: The company derives strength from experience of the promoters – Ashiana Homes Pvt ltd (AHPL) and Landcraft Projects Private Limited (LPPL) in the real estate sector. Both the companies have an established track record of executing several real estate projects, including development of township, group housing, commercial complexes, etc. Some of the major completed projects include Ashiana Upvan (Ghaziabad), Ashiana Greens (Ghaziabad), Golf Links Flat (Ghaziabad), Ashiana Palm court (Ghaziabad) etc. Incorporated in 2012, ALRPL is a joint development between Ashiana Homes Pvt Ltd (AHPL) and Landcraft Projects Private Limited (LPPL) formed solely for a premium real estate residential project development named 'The Center Court' located at Sector 88A, Gurgaon. LPPL was incorporated in 2007 and is the real estate vertical of Garg group with the presence in Ghaziabad. The group has developed more than 20.04 lsf of area with residential and commercial projects in Ghaziabad. AHPL was incorporated in 1987, with presence mostly in North India and has developed more than 55 lsf of area with eight completed projects. ASHOK BRICKS: Ind-Ra Keeps D Rating in Non-Cooperating ------------------------------------------------------ India Ratings and Research (Ind-Ra) has maintained Ashok Bricks Industries Private Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR140 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; -- INR200 mil. Non-Fund Based Working Capital Limit maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR100 mil. Term loan maintained in non-cooperating category With IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information Detailed Rationale of the Rating Action The ratings are maintained in the non-cooperating category in accordance with Ind-Ra's policy of Issuer Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with Ashok Bricks Industries Private Limited while reviewing the rating. Ind-Ra had consistently followed up with Ashok Bricks Industries Private Limited over emails, apart from phone calls.. Limitations regarding Information Availability Ind-Ra has reviewed the credit ratings of Ashok Bricks Industries Private Limited on the basis of best available information and is unable to provide a forward-looking credit view. Hence, the current outstanding rating might not reflect Ashok Bricks Industries Private Limited's credit strength. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption / distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. About the Company Ashok Bricks Industries, established in 1992 as a partnership firm, operates in the construction industry. ASIAN HOTELS: Ind-Ra Keeps D Rating in NonCooperating ----------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Asian Hotels (West) Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR270 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR2,207.65 bil. Term loan due on March 31, 2033 maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information Detailed Rationale of the Rating Action The ratings are maintained in the non-cooperating category in accordance with Ind-Ra's policy of Issuer Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with Asian Hotels (West) Limited while reviewing the rating. Ind-Ra had consistently followed up with Asian Hotels (West) Limited over emails, apart from phone calls. Limitations regarding Information Availability Ind-Ra has reviewed the credit ratings of Asian Hotels (West) Limited on the basis of best available information and is unable to provide a forward-looking credit view. Hence, the current outstanding rating might not reflect Asian Hotels (West) Limited's credit strength. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption / distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. About the Company AHWL was incorporated on January 8, 2007 as Chillwinds Hotels Private Limited and was changed to the present name on 12 February 2010. The company entered into a scheme of arrangement and demerger with Asian Hotels Limited, under which Hyatt Regency Mumbai of the Asian Hotels was demerged and vested in the company. AHWL operates a 401-room five-star hotel in Mumbai and has partnered with Hyatt Hotels India for branding, operating and marketing the hotel under the Hyatt Regency brand. ASIATIC ELECTRICAL: Ind-Ra Keeps B+ Rating in NonCooperating ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has maintained Asiatic Electrical & Switchgear Pvt. Ltd.'s instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND B+/Negative (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR150 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND B+/Negative (ISSUER NOT COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating; -- INR150 mil. Non-Fund Based Working Capital Limit maintained in non-cooperating category with IND A4 (ISSUER NOT COOPERATING) rating; and -- INR85.01 mil. Term loan due on January 31, 2023 maintained in non-cooperating category with IND B+/Negative (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information Detailed Rationale of the Rating Action The ratings are maintained in the non-cooperating category in accordance with Ind-Ra's policy of Issuer Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with Asiatic Electrical & Switchgear Pvt. Ltd. while reviewing the rating. Ind-Ra had consistently followed up with Asiatic Electrical & Switchgear Pvt. Ltd. over emails, apart from phone calls. Limitations regarding Information Availability Ind-Ra has reviewed the credit ratings of Asiatic Electrical & Switchgear Pvt. Ltd. on the basis of best available information and is unable to provide a forward-looking credit view. Hence, the current outstanding rating might not reflect Asiatic Electrical & Switchgear Pvt. Ltd.'s credit strength. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption / distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. About the Company ASEPL designs, manufactures and sells a wide range of switchgear products, including feeder pillars, distribution boards, low-voltage cut-outs, fuse switches, fuse cut-outs, surge arrestors, fuse boards and composite insulators. AXXELENT PHARMA: Ind-Ra Affirms BB+ Bank Rating, Outlook Stable --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has revised the Outlook on Axxelent Pharma Science Private Limited's (APSPL) bank facilities to Stable from Positive while affirming the ratings at 'IND BB+'. The detailed rating actions are: -- INR1,479.20 bil. (reduced from INR1,879.20 bil.) Term loan due on October 2029 affirmed/Outlook revised to stable from positive with IND BB+/Stable rating; and -- INR400 mil. Proposed term loan assigned with IND BB+/Stable rating. Analytical Approach Ind-Ra continues to take a standalone view of APSPL to arrive at the ratings. Detailed Rationale of the Rating Action The Outlook revision to Stable reflects a delay in the commencement of operations of APSPL's Phase 2 and consequently in the commencement of commercial operations. APSPL had initially planned to complete the construction of Phase 2 and commence its operations by FYE24. However, the work was delayed and got completed in January 2024 and the management expects the operations to start from July 2024. The affirmation reflects the weak overall credit metrics during the initial years of commencement of operations. However, the ratings are supported by promoter's operating track record to establish strong relationships with its customers and thus obtain contracts. Detailed Description of Key Rating Drivers Delay in Commencement of Operations: APSPL had planned to complete the construction of Phase 2 and commence its operations by July 2023; however, the same got delayed was completed in January 2024. The regulatory approvals are likely to take another four-to-five months and the operations will commence from July 2024. APSPL completed the construction of Phase 1, which comprises an oral dosage manufacturing facility, in December 2022. The Phase 2 involves constructing an injectables manufacturing facility which is scheduled to be completed by July 2024. Both the facilities are located at Sricity Tada, Andhra Pradesh. As per the management, the delay is on account of delays in obtaining licenses from the respective authorities due to a change in the district jurisdiction, which further led to delays in the regulatory approvals from drug control authorities. Stretched Liquidity: APSPL has debt repayments of INR153.4 million in FY25 and INR240.9 million in FY26. It does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. Ind-Ra expects the debt service coverage ratio to be weak during the initial years of commencement of operations. However, the debt serviceability will be supported through investor and promoters fund. Weak Credit Metrics: The total capex envisaged for the project is INR2,472 million, being funded through promoter's equity contribution of INR243.6 million, redeemable preference shares (RPSs) of INR787.4 million, INR1,309 million through term loans from banks and the remaining through promoters' contribution; the company has already received a sanction for the entire term loan and the whole equity was already infused at end-March 2024. Ind-Ra expects the overall credit metrics to be weak during the initial years of commencement of operations, before an improvement could be seen in the ratios in line with the improvement in the scale of operations. However, the rating derives comfort from the debt service reserve account equivalent to 4.85% of the loan i.e. disbursed amount with their bank. Expected Small Scale of Operations: Ind-Ra expects the scale of operations to be small in FY25 since it will be the first year of full-fledged operations. The management expects to book a top line of INR630 million in FY25, based on an order book of INR1,239.7 million at end-March 2024, to be executed till FY28. It also has contracts worth INR591.95 million under advance stage of discussions with different parties. Extensive Promoters Experience: The ratings are supported by the minimal off-take risk in view of the promoter's diverse experience of over three decades in the pharmaceutical industry. The company is leveraging the promoter's operating track record to establish strong relationships with its customers and thus obtain contracts. Liquidity Stretched: APSPL will be receiving total investments of INR820 million from KR Impex India Pty Ltd(a limited liability company registered in Australia) in five tranches in the form of equity and RPSs. Till end-March 2024, INR488.32 million was raised in the form of equity share capital and INR240.75 million as RPSs from KR Impex India. According to the management, if, in any case, there is an instance of project cost overrun, the promoters will infuse capital through equity. The average maximum utilization of the fund-based limits was 83.37% and that of the non-fund-based limits was 18.38% during the 12 months ended March 2024. Rating Sensitivities Negative: Any further delay in the project completion or delay in timely investment from the investor and lower-than-Ind-Ra-expected revenue visibility, leading to an inability to generate operating profit and continued stress on the liquidity position will be negative for the ratings. Positive: A significant improvement in the revenue and profitability, timely investment from the investor and revenue visibility from the Phase 2 facility, all leading to an improvement in the liquidity position and improved credit metrics in FY25 and beyond, all on a sustained basis, could lead to a positive rating action. About the Company Incorporated in October 2019, APSPL is a research and service-driven pharmaceutical company focused on contract development and contract manufacturing of oral solid, injectable, oral liquid and topical dosage forms for clients across the US, Europe, and Asia. The head office is in Chennai. BILVA EDU: Voluntary Liquidation Process Case Summary ----------------------------------------------------- Debtor: BILVA EDU PRIVATE LIMITED G-2, Janak Residency Kumara Krupa Road Adjacent to Race View Hotel Bangalore, Karnataka 560001 Liquidation Commencement Date: May 15, 2024 Court: National Company Law Tribunal, Bengaluru Bench Liquidator: Praveen Prakash Ghali Plot No 4, Pathwardhan colony IVI Vadgaon, Belgaum, Karnataka-590005 Office : 3rd Floor DRK Emire, Tilakwadi Belagavi, Karnataka, 590006 E-mail : cappghali@gmail.com E-mail : bilvaliquidation@gmail. com Phone: 9448765797 Last date for submission of claims: June 12, 2024 BKD INFRASTRUCTURE: Ind-Ra Keeps BB+ Rating in NonCooperating ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained BKD Infrastructure Pvt. Ltd.'s instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND BB+/Stable (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR20 mil. Fund Based Working Capital Limit maintained in non- cooperating category with IND BB+/Stable (ISSUER NOT COOPERATING) rating; and -- INR120 mil. Non-Fund Based Working Capital Limit maintained in non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information Detailed Rationale of the Rating Action The ratings are maintained in the non-cooperating category in accordance with Ind-Ra's policy of Issuer Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with BKD Infrastructure Pvt. Ltd. while reviewing the rating. Ind-Ra had consistently followed up with BKD Infrastructure Pvt. Ltd. over emails, apart from phone calls. Limitations regarding Information Availability Ind-Ra has reviewed the credit ratings of BKD Infrastructure Pvt. Ltd. on the basis of best available information and is unable to provide a forward-looking credit view. Hence, the current outstanding rating might not reflect BKD Infrastructure Pvt. Ltd.'s credit strength. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption / distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. About the Company BIPL was incorporated in April 2008 and has a registered office in Sambalpur, Odisha. The company, promoted by Braja Kishore Das and Monalisa Das, executes civil construction works. COIRFOAM INDIA: Ind-Ra Keeps BB- Rating in NonCooperating --------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Coirfoam India Private Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND BB-/Stable (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR70 mil. Fund Based Working Capital Limit maintained in non- cooperating category with IND BB-/Stable (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR10 mil. Non-Fund Based Working Capital Limit Maintained in non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information Detailed Rationale of the Rating Action The ratings are maintained in the non-cooperating category in accordance with Ind-Ra's policy of Issuer Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with Coirfoam India Private Limited while reviewing the rating. Ind-Ra had consistently followed up with Coirfoam India Private Limited over emails, apart from phone calls. Limitations regarding Information Availability Ind-Ra has reviewed the credit ratings of Coirfoam India Private Limited on the basis of best available information and is unable to provide a forward-looking credit view. Hence, the current outstanding rating might not reflect Coirfoam India Private Limited's credit strength. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption / distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. About the Company Coirfoam India was incorporated in 1978 as a partnership firm by the Agarwal family. In 1997, it was taken over by Inderjeet Singh Khurana, Sukhdeep Singh Khurana, Pankaj Agarwal and Jagdish Prasad Agarwal. The company manufactures coir and spring mattresses at its facility in Faridabad (Haryana). The facility has an installed capacity to manufacture 2,800 tons per annum of coir and spring mattresses. Furthermore, the company is engaged in the trading of home furnishing items such as pillows, cushions and blankets. COLOSSUS TRADE: ICRA Keeps B+ Debt Rating in Not Cooperating ------------------------------------------------------------ ICRA has kept the Long-term rating for the bank facilities of Colossus Trade Links Ltd. (CTLL) in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]B+(Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 25.00 [ICRA]B+ (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Cash Credit to remain under 'Issuer Not Cooperating' category As part of its process and in accordance with its rating agreement with CTLL, ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite multiple requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information and in line with the aforesaid policy of ICRA, the rating has been continued to the "Issuer Not Cooperating" category. The rating is based on the best available information. Colossus Trade Links Limited (CTLL) was incorporated in 2004 by Mr. Namit Gulati and his family. The company is engaged in trading of scrap metal procured from the domestic automobile sector. It derives its revenues from supply of scrap metal to foundries, steel plants, traders and electronic original equipment manufacturers (OEMs). CTLL, which is headquartered in Delhi, has seven warehouses (three owned and four rented) across northern India, with a combined area of over 15,000 square yards and combined storage capacity of over 8,000 tonnes. DHRUV WELLNESS: CARE Keeps D Debt Rating in Not Cooperating ----------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Dhruv Wellness Limited (DWL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 15.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Rationale and key rating drivers CARE Ratings Ltd. had, vide its press release dated March 3, 2023, placed the rating(s) of DWL under the 'issuer non-cooperating' category as DWL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. DWL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated January 17, 2024, January 27, 2024, February 6, 2024. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Established in 2005 by Mr. Pravin Kumar Prajapati as a proprietorship entity, Dhruv Agency (DA), with Mrs. Anita Prajapati as the proprietor) was later converted into a private limited company and renamed as Dhruv Wellness Private Limited (DWPL) in March 2015, thereafter which it was converted into a public limited company and renamed as Dhruv Wellness Limited (DWL) [ISIN: INE109Y01011] in July 2017. DWL is engaged in trading & distributorship of various pharmaceutical & cosmetic products which are sold to various retailers and wholesalers mainly in the Western suburbs of Mumbai and outskirts also. Some of the said products are procured by the company directly from the principal manufacturers of the same for whom the company acts as a distributor, whereas the rest of the products are procured from other wholesalers of the same. Moreover, the company also undertakes manufacturing of ayurvedic medicines under its own brand "Dhruv", however such manufacturing is completely outsourced to Savita Health Care Private Limited. DIACH CHEMICALS: ICRA Keeps B+ Debt Rating in Not Cooperating ------------------------------------------------------------- ICRA has kept the Long-term and Short-term rating for the bank facilities of Diach Chemicals & Pigments Pvt Ltd (DCPPL) in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]B+(Stable)/[ICRA]A4; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 12.00 [ICRA]B+ (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Cash Credit to remain under 'Issuer Not Cooperating' category Short Term- 2.00 [ICRA]A4 ISSUER NOT Non Fund Based COOPERATING; Rating continues Others to remain under 'Issuer Not Cooperating' category As part of its process and in accordance with its rating agreement with DCPPL, ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite multiple requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information and in line with the aforesaid policy of ICRA, the rating has been continued to the "Issuer Not Cooperating" category. The rating is based on the best available information. Diach Chemicals and Pigments Private Limited (DCPPL) was incorporated in 2005 by Mr. Diach Gosh and his son to set up a manufacturing unit of lead-based products such as red lead, refined lead, antimonial lead and grey oxide. The manufacturing facility is located at Dhulagarh, West Bengal and it commenced operations in 2009. The products find applications in battery industry, paint industry and glass and ceramic industry. DSS INFRASTRUCTURE: Insolvency Resolution Process Case Summary -------------------------------------------------------------- Debtor: DSS Infrastructure Private Limited Registered Address: 309, Indraprakash Building 21 Barakhamba Road New Delhi - 110001 Insolvency Commencement Date: May 7, 2024 Court: National Company Law Tribunal, New Delhi Bench-IV Estimated date of closure of insolvency resolution process: November 3, 2024 Insolvency professional: Jalesh Kumar Grover Interim Resolution Professional: Jalesh Kumar Grover Ducturus Resolution Professionals Pvt Ltd SCO 818, 1st Floor, Nac, Manimajra Chandigarh-160101 (Above Yes Bank) Email: jk.grover27@gmail.com Email: dsscirp@gmail.com Last date for submission of claims: May 21, 2024 EAST COAST: ICRA Moves D Debt Ratings to Not Cooperating Category ----------------------------------------------------------------- ICRA has moved the ratings for the bank facilities of East Coast Engineering Company (EEC) to the Issuer Not-Cooperating category. The rating is denoted as [ICRA]D/[ICRA]D; ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term- 12.0 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating moved to the 'Issuer Not Cash Credit Cooperating' Category Short term- 4.0 [ICRA]D; ISSUER NOT COOPERATING; Non fund based Rating moved to the 'Issuer Not Others Cooperating' category As part of its process and in accordance with its rating agreement with EEC, ICRA has been trying to seek information from the entity to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information and in line with the aforesaid policy of ICRA, a rating view has been taken on the entity based on the best available information. EEC was established in 1986 as a partnership firm. It provides preliminary seismic survey services such as land and transition zone surveys, shallow water services and acquisition of 2D and 3D data through shot hole drilling process to oil exploration and production (E&P) companies, primarily ONGC. The firm is based in Guntur, Andhra Pradesh, and the operations are, at present, managed by its partner, Mr. B. V. Sivarama Raju, who has nearly 30 years of experience in seismic services. EMERALD ALCHYMICUS: ICRA Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------------- ICRA has kept the long-term and short-term rating of Emerald Alchymicus Private Limited (EAPL) in the 'Issuer Not Cooperating' category. The ratings are denoted as [ICRA]D/[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term- 7.50 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category Short-term 5.75 [ICRA]D; ISSUER NOT COOPERATING; Non-fund based Rating continues to remain under Others 'Issuer Not Cooperating' Category As part of its process and in accordance with its rating agreement with EAPL, ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite multiple requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information and in line with the aforesaid policy of ICRA, the rating has been continued to the "Issuer Not Cooperating" category. The rating is based on the best available information. Incorporated in 2003, Emerald Alchymicus P Limited (EAPL) is involved in trading of chemicals. The company derives its revenue from two segments viz. Stock & Sell and Commercial segment. In case of Stock & Sell, the company imports specialty chemicals from various overseas suppliers and maintains an inventory of the same whereas in the case of Commercial segment, the customers place bulk orders with EAPL for various chemicals and based on these orders, EAPL procures the materials from the suppliers and supplies directly to the customers. EXCELL AUTOVISTA: Ind-Ra Affirms BB+ Bank Rating, Outlook Stable ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has taken following rating actions on Excell Autovista Private Limited's (EAPL) bank facilities: -- INR944.50 mil. Fund-based working capital limits affirmed with IND BB+/Stable/IND A4+ rating; -- INR500 mil. Fund-based working capital limits assigned with IND BB+/Stable/IND A4+ rating; -- INR284.70 mil. Term loan due on FY30 affirmed with IND BB+/ Stable rating; -- INR70.22 mil. Term loan due on FY30 assigned with IND BB+/ Stable rating; and -- INR80 mil. Non-fund-based working capital limits affirmed with IND A4+ rating. Detailed Rationale of the Rating Action The ratings reflect EAPL's medium scale of operations and deterioration in the credit metrics during FY24. The agency expects the scale of operations to improve in FY25, supported by the opening of a new showroom and its existing showrooms. The ratings are, however, supported by EAPL's established market position and experienced promoters. Its margins and net working capital cycle remain a key rating monitorable. Detailed Description of Key Rating Drivers Medium Scale of Operations: As per its FY24 provisional financials, EAPL's revenue grew to INR12,343.60 million (FY23: INR9,496.58 million) owing to an increase in demand for passenger vehicles (PVs). The company's scale of operations remained medium. EAPL generates around 87% of its revenue from the dealership of Maruti Suzuki India Limited's (MSIL) PVs from its seven showrooms. It also has two True Value showrooms, which deal in pre-owned PVs, and nine service centers. EAPL has also opened a new showroom in Kolad, Raigad, which became operational in April 2023. MSIL is a market leader in India's PV segment, accounting for 42% of the domestic sales during FY23 (FY22: 43%; FY21: 50%). Ind-Ra expects the scale of operations to improve over the medium term due to established market presence and strong demand for MSIL's vehicles. Weak Credit Metrics: EAPL's credit matrices remained weak despite a marginal increase in its gross interest coverage (operating EBITDA/gross interest expense) to 2.21x in FY23 (FY22: 2.11x), mainly due to an increase in the absolute EBITDA to INR251.54 million (INR192.45 million), and a reduction in the net leverage (adjusted net debt/operating EBITDA) to 3.16x (4.0x) amid an increase in the debt to INR992.16 million (INR933.24 million). Ind-Ra expects the net financial leverage to have deteriorated during FY24 due to an increase in its debt levels to INR1,470.13 million to support the increase in its scale of operations. The agency expects the credit metrics to improve over the medium term owing to an increase in absolute EBITDA due to the likely improved scale of operations; however, it would partially be offset by its planned debt-funded capex in FY25. Cyclical Nature of the Auto Industry; Intense Competition: EAPL operates in a cyclical auto industry, which is susceptible to macro-economic factors. Its operations remain dependent on the sale of MSIL's PVs, exposing the company to cyclical downturns in the PV segment, as well as risks of a lower demand for MSIL's vehicles and increased competition from other dealers of MSIL. Furthermore, EAPL's operations are concentrated in Maharashtra, exposing the company to geo-political risks. Established Market Position; Experienced Promoters: EAPL was incorporated in 2005 and has been a dealer of MSIL's PVs for more than a decade. The company has nine showrooms, five service centers and four stock yards across Mumbai, Navi Mumbai and Pune, and is expanding in Pune. The ratings also factor in the promoters' over a decade of experience in the automobile sector. Healthy Profitability: EAPL's EBITDA margins remained healthy but deteriorated to 2.65% in FY23 (FY22: 2.73%). The agency expects the margins to have deteriorated further in FY24, primarily due to the dealership nature of the business and increased commissions and discounts. The company generates major part of its revenue through sales of vehicles, which have lower margin than that for services and spare parts segment. The return on capital employed improved to 17.4% in FY23 (FY22: 13.5%), due to an increase in the EBITDA. Ind-Ra expects the margins to remain stable over the medium term, owing to the similar nature of the operations. Liquidity Stretched: At FYE23, the company's cash and cash equivalents increased to INR196.18 million (FYE22: INR163.08 million), of which around INR150 million was in the form fixed deposits earmarked as securities against working capital limits. The cash flow from operations declined to INR14.77 million in FY23 (FY22: INR23.32 million), mainly due to an increase in working capital requirement and the agency expects the cash flow from operations to have deteriorated during FY24, due to the increase in the scale of operations and a stretch in net working capital cycle. The net working capital cycle increased to 37 days in FY23 (FY22: 28 days) majorly due to an increase in the inventory days to 29 days (23 days). Further, the free cash flow turned negative to INR25.36 million in FY23 (FY22: INR2.77 million) due to the capex of INR40.13 million (INR20.55 million) undertaken for setting up new showrooms. The agency expects the free cash flows to deteriorate during FY25 due to the debt-funded capex of INR100 million for construction of new showroom and service center in Pune. The management looks to avail INR50 million debt for the capex during FY25. The average monthly peak utilizations of the working capital limits stood at 85.60% for the 12 months ended February 2024 and the agency expects the utilizations to remain at similar level till April 2024. EAPL has enhanced its working capital limits by INR400 million to meet its increase in working capital requirements. It has scheduled repayments of INR71.50 million in FY25 and INR72.30 million in FY26. Ind-Ra expects the liquidity to remain stretched during the medium term. Rating Sensitivities Negative: A decline in the scale of operations or the net leverage increasing above 4.5x or deterioration in the liquidity position, on a sustained basis, could lead to a negative rating action. Positive: The maintenance of the scale of operations, leading to an improvement in the overall credit metrics with the net leverage remaining below 3.5x and an improvement in the liquidity position, all on a sustained basis, could lead to a positive rating action. About the Company Incorporated in 2005, EAPL is primarily an authorized dealer of MSIL. Madhup Agarwal and Sunny Agarwal are the promoters. GANAPATHY ENTERPRISES: CRISIL Keeps B+ Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Sri Ganapathy Enterprises (SGA) continue to be 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bill Discounting 1 CRISIL B+/Stable (Issuer Not Cooperating) Cash Credit 9 CRISIL B+/Stable (Issuer Not Cooperating) Long Term Loan 2 CRISIL B+/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SGA 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 SGA, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SGA is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SGA continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. SGA was set up in 1999 and trades in various construction materials such as river sand, blue metal, bricks, and solid blocks. The firm is based in Chennai and its operations are managed by promoter Mr. T Srinivasan. GEETANJALI GRAPHICS: Ind-Ra Keeps D Rating in NonCooperating ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has maintained Geetanjali Graphics' instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR70 mil. Fund Based Working Capital Limit maintained in non- cooperating category with IND D (ISSUER NOT COOPERATING) rating; -- INR11 mil. Non-Fund Based Working Capital Limit maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR9.83 mil. Term loan due on December 31, 2021 maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information Detailed Rationale of the Rating Action The ratings are maintained in the non-cooperating category in accordance with Ind-Ra's policy of Issuer Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with Geetanjali Graphics while reviewing the rating. Ind-Ra had consistently followed up with Geetanjali Graphics over emails, apart from phone calls. Limitations regarding Information Availability Ind-Ra has reviewed the credit ratings of Geetanjali Graphics on the basis of best available information and is unable to provide a forward-looking credit view. Hence, the current outstanding rating might not reflect Geetanjali Graphics' credit strength. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption / distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. About the Company Geetanjali Graphics was established as a partnership firm in 1979 and was reconstituted as a sole proprietorship in April 2000. The firm is promoted by Nagasundar. It has an installed printing capacity of 20 tons of paper per day. GREEN GOLD: Ind-Ra Affirms BB NCD Rating, Outlook Stable -------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Green Gold Animation Private Limited's (GGAPL) non-convertible debentures (NCDs) as follows: -- INR200 mil. Non-convertible debentures (NCD)* affirmed with IND BB/Stable rating. *Details in Annexure Analytical Approach To arrive at the ratings, Ind-Ra continues to take a consolidated view of GGAPL and its group company Megraj Holdings Private Limited (MHPL; NCDs rated at IND BB/Stable), along with GGAPL's subsidiaries Green Gold Licensing & Merchandising Pvt. Ltd. (holds 51%), Green Gold Entertainment Pte. Ltd.(100%), Green Gold Corporation US (100%) and Goldon Robot Animations P. Ltd. (90%) due to the strong operational, strategical and legal linkages among them. Ind-Ra has also consolidated Kazoom Holding Private Limited and Tigris Entertainment Private Limited (50%) with the stated companies for the rating review as both these group companies have extended a corporate guarantee for the issued NCDs. MHPL and Kazoom Holding have no active business. Thus, these companies do not contribute to the consolidated financial numbers. Detailed Rationale of the Rating Action The rating reflects the high repayment obligation for NCDs and modest consolidated credit metrics. However, the ratings are supported by growth in the consolidated revenue and EBITDA in FY24, primarily on account of the continuous production of new intellectual property, along with generating revenue through the syndication of library contents. The management has also ventured in the production of live action movies thus, the revenue is likely to increase further over the near-to-medium term. Detailed Description of Key Rating Drivers High Repayment Obligation: The company has scheduled, high repayment obligation for the NCDs, which are redeemable in FY27 along with the redemption premium of INR579.35 million for a total value around INR2,290 million. As per the management, these NCDs are likely to be paid out either through a refinancing arrangement with any non-banking financial company or taking a strategic investor into consideration for selling out some stake in the company. The management is also planning to issue an initial public offering (IPO) over the near-to-medium term, the proceeds from which will used for the NCD repayment. Modest Credit Metrics: The consolidated net leverage (adjusted net debt/operating EBITDAR) deteriorated to 3.48x in FY23 (FY22: 1.28x), and the gross interest coverage (operating EBITDAR/gross interest expense + rents) to 2.77x (6.06x), due to a decline in the EBITDA to INR54.76 million (INR95.55 million). The EBITDA fell on account of a work interruption caused by a reduction of work force after COVID-19; however, the company managed to recover in FY24 with the EBITDA likely to have come in at around INR150 million during the year. The credit metrics are likely to decline as the interest cost will increase from FY25 after the moratorium period. Additionally, the debenture's coupon rate is 7%; however, with the effect of the redemption premium, the effective internal rate of return would be 17%. Established Track Record of Operations: GGAPL has been an animation player for over two decades and has diversified its portfolio in different services such as content production and its sale, animation, licensing, merchandising, gaming, ed-tech and royalty, among others. From FY22, GGAPL has entered into the visual effects, studio services and live action space. It has produced several popular animated series such as Chhota Bheem, Vikram Betaal and Mighty Raju. From FY23, the company has also ventured into the production of live action movies such as Aa Okkati Adakku, Curse of Damyan and Mareechika. Strong Customer Profile: The top five customers of GGAPL (Turner Broadcasting System Inc., MoonBug Entertainment, Netflix Inc., Culver Max Entertainment Pvt. Ltd (Sony Pictures), The Walt Disney Company India (Disney)) together contributed more than 60% to GGAPL's consolidated revenue in FY24 (provisional); Ind-Ra expects the trend to continue over the near-to-medium term. Considering the experience of all these customers, GGAPL has an opportunity to grow in line with customer content requirements. Adequate Revenue Visibility: The consolidated revenue increased to INR1,026.05 million, according to the provisional financials for FY24 (FY23: INR811.47 million, FY22: INR798.96 million). The revenue is likely to increase further over the near-to-medium term on account of GGAPL venturing into the production of live action movies, the continuous production of intellectual property and through the syndication of library content made over the past two decades which has content having a huge popularity among kids in India. Additionally, GGAPL has a diversified portfolio of various services having orders worth INR1,420 million in hand which are likely to be executed in the near term, thereby giving comfortable revenue visibility over the short-to-medium term. Liquidity Stretched: GGAPL's average maximum utilization of the fund-based working capital limits was 99% for the 12 months ended March 2024. At FYE23, the consolidated free cash and cash equivalents stood at INR25.18 million (FYE22: INR33.91 million) and the cash flow from operating activities stood negative at INR77.79 million (INR224.3 million). Furthermore, its fixed deposits came in at INR931.31 million at FYE23 (FYE22: INR310.375 million). GGAPL plans to incur an overall capex of around INR240 million up to FY27. The company has to pay an annual interest of around INR110 million in FY25 and FY26. Ind-Ra expects the liquidity to remain stretched over the medium term, considering the maturity of the proposed NCDs of INR1,600 million, along with the redemption premium of INR500 million over the three years ending June 2026. Rating Sensitivities Negative: Substantial liquidity deterioration, a significant decrease in the revenue and operations and continued modest credit metrics will lead to a negative rating action. Positive: A substantial improvement in the liquidity, an advance arrangement of refinancing, a significant increase in the revenue, with strong credit metrics will lead to a positive rating action. Any Other Information Standalone profile: According to the provisional financials for FY24, GGAPL's revenue was INR963.90 million (FY23: INR652.83 million) and EBITDA margin was 13.5% (7.58%). GGAPL's gross interest coverage ratio was 3.07x in FY23 (FY22: 144.21x) and its net leverage was 2.42x (negative 0.14x). About the Company GGAPL is a Hyderabad-based Indian animation company, with offices in India, Singapore, Philippines and the US. It is known for creating the Chhota Bheem television series and the Krishna film series. GGAPL was founded by Rajiv Chilaka in January 2001. HERCULES HOSPITALITIES: Ind-Ra Keeps B Rating in NonCooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Hercules Hospitalities Private Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND B/Stable (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR110 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND B/Stable (ISSUER NOT COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating; and -- INR10.29 mil. Term loan due on March 31, 2022 maintained in non-cooperating category with IND B/Stable (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information Detailed Rationale of the Rating Action The ratings are maintained in the non-cooperating category in accordance with Ind-Ra's policy of Issuer Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with Hercules Hospitalities Private Limited while reviewing the rating. Ind-Ra had consistently followed up with Hercules Hospitalities Private Limited over emails, apart from phone calls. Limitations regarding Information Availability Ind-Ra has reviewed the credit ratings of Hercules Hospitalities Private Limited on the basis of best available information and is unable to provide a forward-looking credit view. Hence, the current outstanding rating might not reflect Hercules Hospitalities Private Limited's credit strength. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption / distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. About the Company Incorporated in 2003, HHPL is part of the Hercules Group. The company had set up an automobile dealership showroom of NEXA in the Alleppey district of Kerala. HIA EXPORTS: Ind-Ra Keeps BB- Rating in NonCooperating ------------------------------------------------------ India Ratings and Research (Ind-Ra) has maintained Hia Exports' instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND BB-/Stable (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating action is: -- INR100 mil. Fund-based working capital limit maintained in non-cooperating category with IND BB-/Stable (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information Detailed Rationale of the Rating Action The ratings are maintained in the non-cooperating category in accordance with Ind-Ra's policy of Issuer Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with Hia Exports while reviewing the rating. Ind-Ra had consistently followed up with Hia Exports over emails, apart from phone calls. Limitations regarding Information Availability Ind-Ra has reviewed the credit ratings of Hia Exports on the basis of best available information and is unable to provide a forward-looking credit view. Hence, the current outstanding rating might not reflect Hia Exports' credit strength. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption / distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. About the Company Formed in 2004, Mumbai-based HIA Exports is a proprietorship concern engaged in the manufacturing and sales of diamond and gold jewelry. HOTEL RAJ: CRISIL Keeps B+ Debt Ratings in Not Cooperating ---------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Hotel Raj Park Private Limited (HRPPL) continue to be 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 7.08 CRISIL B+/Stable (Issuer Not Cooperating) Overdraft Facility 5.00 CRISIL B+/Stable (Issuer Not Cooperating) Proposed Cash Credit Limit 3.92 CRISIL B+/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with HRPPL 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 HRPPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on HRPPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of HRPPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. HRPPL, established in 2001 and based in Chennai, owns and operates a 4-star hotel in Chennai and a 3-star hotel in Tirupati (Andhra Pradesh). Operations are managed by promoter Mr. Devarajan Gounder. IL&FS FINANCIAL: Ind-Ra Affirms D Bank Loan Rating -------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed IL&FS Financial Services Ltd.'s (IFIN) debt instruments' ratings as follows: -- INR49.850 bil. Non-convertible debentures* (Long-term) affirmed with IND D rating; -- INR11.0 bil. Subordinated debt* (Long-term) affirmed with IND D rating; -- INR7,587.5 bil. Bank loans (Long-term) affirmed with IND D rating; and -- INR7.0 bil. Short-term debt/commercial paper programme^ (Short-term) affirmed with IND D rating. ^Unutilized *Details in annexure Analytical Approach Ind-Ra continues to take a standalone view of IFIN to arrive at the rating. Detailed Rationale of the Rating Action The affirmation reflects IFIN's continued delays in debt servicing since September 2018. Detailed Description of Key Rating Drivers Delayed Debt Repayment: The ratings continue to reflect IFIN's missed payments on contractual debt obligations. The IL&FS group is functioning under a resolution framework wherein payments are made mostly to meet operational expenses to ensure the going concern status of the company. The group remains in a cash conserving mode while making efforts towards asset monetization. Liquidity Poor: IFIN has been in continuous default since September 2018, and the liquidity is poor. Rating Sensitivities Positive: Timely debt servicing for at least three consecutive months could result in a positive rating action. About the Company IFIN was a non-banking finance company that provided credit and other services such as debt syndication and corporate advisory. IL&FS TRANSPORTATION: Ind-Ra Affirms D NCD Rating ------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed IL&FS Transportation Networks Limited's (ITNL) bank loans at 'IND D' as follows: -- INR8.00 mil. Non-convertible debentures (long-term)* affirmed with IND D rating; and -- INR1.19 mil. Term loan (long term) due on December 31, 2018 affirmed with IND D rating. *Details in the annexure Analytical Approach Ind-Ra continues to take a standalone rating approach for ITNL while factoring in the support towards SPVs. Detailed Rationale of the Rating Action The affirmation reflects ITNL's continued delays in debt servicing since September 2018, as per the no-default statement shared with Ind-Ra. Detailed Description of Key Rating Drivers Delayed Debt Repayment: The rating reflects ITNL's continuous delays in servicing of its debt obligations since September 2018 on account of its poor liquidity position. Liquidity Poor: ITNL has not been servicing its debt since September 2018, as per the confirmation from the company. As per NCLAT order dated October 15, 2018, the company, being part of the IL&FS Group, has been put under a moratorium on debt payment, hence it is not servicing the dues to its lenders. Rating Sensitivities Negative: None Positive: Timely debt servicing for at least three consecutive months could result in a positive rating action. About the Company ITNL is a surface transportation infrastructure company and the largest private sector road operator in India under the build-operate-transfer model. INDORE TABLE: Ind-Ra Keeps D Rating in Non-Cooperating ------------------------------------------------------ India Ratings and Research (Ind-Ra) has maintained Indore Table Tennis Trust's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR0.54 mil. Fund/Non-Fund Based Working Capital Limit maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR72.2 mil. Term loan due on April 30, 2019 maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information Detailed Rationale of the Rating Action The ratings are maintained in the non-cooperating category in accordance with Ind-Ra's policy of Issuer Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with Indore Table Tennis Trust while reviewing the rating. Ind-Ra had consistently followed up with Indore Table Tennis Trust over emails, apart from phone calls. Limitations regarding Information Availability Ind-Ra has reviewed the credit ratings of Indore Table Tennis Trust on the basis of best available information and is unable to provide a forward-looking credit view. Hence, the current outstanding rating might not reflect Indore Table Tennis Trust's credit strength. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption/distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. About the Company Formed in December 1994, Indore Table Tennis Trust runs the Abhay Prashal Sports Club, which provides table tennis and other indoor game facilities. In addition, it has a swimming pool, banquet halls and an upcoming auditorium. INDRANI AUTOMOTIVE: Ind-Ra Keeps BB Rating in NonCooperating ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has maintained Indrani Automotive & Engineering's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND BB/Stable (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR22.50 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND BB/Stable (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR20.73 mil. Term loan due on July 31, 2021 maintained in non-cooperating category with IND BB/Stable (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information Detailed Rationale of the Rating Action The ratings are maintained in the non-cooperating category in accordance with Ind-Ra's policy of Issuer Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with Indrani Automotive & Engineering while reviewing the rating. Ind-Ra had consistently followed up with Indrani Automotive & Engineering over emails, apart from phone calls. Limitations regarding Information Availability Ind-Ra has reviewed the credit ratings of Indrani Automotive & Engineering on the basis of best available information and is unable to provide a forward-looking credit view. Hence, the current outstanding rating might not reflect Indrani Automotive & Engineering's credit strength. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption / distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. About the Company The firm was established as a partnership concern in 2003, and started its commercial operations in 2005. It manufactures automotive components for two and three wheelers. INFRASTRUCTURE LEASING: Ind-Ra Affirms D Bank Loan Rating --------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Infrastructure Leasing & Financial Services Limited's (IL&FS) debt instruments' ratings as follows: -- INR93,600.8 bil. Long-term debt* (Long-term) affirmed with IND D rating; -- INR1.0 bil. Subordinated debt^ (Long-term) affirmed with IND D rating; -- INR12.250 bil. Short-term debt (Short-term) affirmed with IND D rating; -- Bank loans (Long-term) INR3.0 bil. Affirmed with IND D rating; ^Unutilized *Details in annexure Analytical Approach Ind-Ra continues to take a standalone view of IL&FS to arrive at the rating. Detailed Rationale of the Rating Action The affirmation reflects IL&FS's continued delays in debt servicing since September 2018. Detailed Description of Key Rating Drivers Delayed Debt Repayment: The ratings continue to reflect IL&FS's missed payments on contractual debt obligations. The IL&FS group has been functioning under a resolution framework, wherein payments are made mostly to meet operational expenses to ensure the going concern status of the company. IL&FS remains in a cash conserving mode while continuing to make efforts towards asset monetization. In the company's media release dated October 3, 2023, the company announced that the IL&FS group discharged an aggregate debt of about INR356 billion by way of monetization of assets, auto debits by banks and debt repayment (including interim distribution) across entities as of September 30, 2023. Liquidity Poor: IL&FS has been in continuous default since September 2018, and the liquidity is poor. Rating Sensitivities Positive: Timely debt servicing for at least three consecutive months could result in a positive rating action. About the Company IL&FS operated in India's infrastructure development space. The company had restructured its business in FY08 and converted itself into a holding company after demerging its lending and advisory business to its subsidiary, IL&FS Financial Services Ltd ('IND D'). The company received a core investment company license in September 2012. J M J CHARITABLE: Ind-Ra Keeps BB Loan Rating in NonCooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained J M J Charitable Education Society's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND BB/Stable (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating action is: -- INR200 mil. Bank Loan maintained in non-cooperating category IND BB/Stable (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information Detailed Rationale of the Rating Action The ratings are maintained in the non-cooperating category in accordance with Ind-Ra's policy of Issuer Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with J M J Charitable Education Society while reviewing the rating. Ind-Ra had consistently followed up with J M J Charitable Education Society over emails, apart from phone calls. Limitations regarding Information Availability Ind-Ra has reviewed the credit ratings of J M J Charitable Education Society on the basis of best available information and is unable to provide a forward-looking credit view. Hence, the current outstanding rating might not reflect J M J Charitable Education Society's credit strength. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption / distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. About the Company JMJCES was established on 16 May 2013 under the Registrar of Societies, Rajajinagar, Bengaluru Urban district. The Acharya Institute of Management & Sciences was initially under the management of J M J Education Society (debt rated at 'IND BBB-'/Stable). All the Acharya institutes managed under JMJES were transferred to Soldevanahalli, Bengaluru, except JMJCES, which was remained as the Peenya campus, Bengaluru. JAI MATA: CARE Keeps C Debt Rating in Not Cooperating Category -------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Jai Mata Di Paper Mills Private Limited (JMDPMPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 10.00 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Rationale and key rating drivers CARE Ratings Ltd. had, vide its press release dated March 13, 2023, placed the rating(s) of JMDPMPL under the 'issuer non-cooperating' category as JMDPMPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. JMDPMPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated January 27, 2024, February 6, 2024, February 16, 2024. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Jai Mata Di Paper Mills Private Limited (JMDPMPL) incorporated in September 2008, was promoted by one Sharma family of Raipur. JMDPMPL is engaged in the manufacturing of Kraft paper with an installed capacity of 13,200 MTPA. The manufacturing facility of the company is located near Bilaspur in Chhattisgarh. The day-to-day affairs of the company are looked after by Mr. S B Sharma, Director, with adequate support from other director - Mr. Aditya Sharma. JAYPEE INFRATECH: NCLAT Upholds NCLT Order on Suraksha Realty Bid ----------------------------------------------------------------- The Economic Times reports that insolvency appellate tribunal NCLAT on May 24 upheld Suraksha Realty's bid to acquire debt-ridden Jaypee Infratech but asked it to pay an additional INR1,334 crore as farmers' compensation -- a development expected to bring relief for over 20,000 homebuyers stuck in various real estate projects. Upholding the National Company Law Tribunal's (NCLT) decision of March 2023, the NCLAT said the decision was to avoid any further delay in the implementation of the resolution plan and also to take care of the interests of all stakeholders, including home buyers and claim of Yamuna Express development authority YEIDA for additional compensation of the farmers, ET relates. The corporate Insolvency Resolution Process (CIRP) against Jaypee Infratech Ltd (JIL) was started in August 2017 over an application by the IDBI Bank-led consortium. On March 7 last year, the NCLT approved the bid of the Mumbai-based Suraksha group to buy JIL. However, many parties, including YEIDA, filed a petition in the NCLAT TO challenge the NCLT order. In its 99-page order on May 24, the NCLAT said, "The impugned order passed by the adjudicating authority (NCLT) insofar as it deals with the claim of the appellant (YEIDA) of INR1,689 crores of additional farmers compensation is set aside and the rest of the order approving the resolution plan is upheld," ET relays. "Successful Resolution Applicant (Suraksha Realty) is directed to make payment to the appellant of its secured operational debt of INR1,689 crore in the ratio of 79 per cent, which has been paid to other secured creditors, which amount comes to INR1,334.31 crore." According to ET, the NCLAT further said Suraksha Realty on April 18 has already undertaken to make a payment of INR1,216 crore towards additional compensation in the timeline as indicated. "Let the SRA (Suraksha Realty) make the payment of INR1,216 crore as per its offer in the timeline as indicated therein. An additional amount of INR118.31 crore, which is required to be paid to make its payment equivalent to the payment given to other secured creditors, will also be paid as per the timeline indicated in the offer. Meaning thereby that amount of INR1,334.31 crore to be paid as per timeline and ratio indicated in the offer dated April 18, 2024," it said, notes the report. In its final resolution plan, the Suraksha group offered to bankers more than 2,500 acres of land and nearly INR1,300 crore by way of issuing non-convertible debentures, ET notes. It also proposed to complete all pending flats over the next four years. JIL's lenders had submitted a claim of INR9,783 crore. ET says the NCLAT's ruling, which came 14 months after the NCLT gave its nod for the Suraksha group's offer, will pave the way for the completion of more than 20,000 housing units in various stalled projects of JIL spread across Noida and Greater Noida in the national capital region. A monitoring committee, set up by Interim Resolution Professional (IRP), is taking all necessary steps for expeditious implementation of the resolution plan, the bench noted, ET adds. About Jaypee Infratech Jaypee Infratech Limited (JIL) is engaged in the real estate development. The Company's business segments include Yamuna Expressway Project and Healthcare. The Company's Yamuna Expressway Project is an integrated project, which inter alia includes construction of 165 kilometers long six lane access controlled expressway from Noida to Agra with provision for expansion to eight lane with service roads and associated structures on build, own, operate and transfer basis. The Company provides operation and maintenance of Yamuna Expressway for over 36 years, collection of toll and the rights for development of approximately 25 million square meters of land for residential, commercial, institutional, amusement and industrial purposes at over five land parcels along the expressway. The Healthcare business segment includes hospitals. The Company has commenced development of its Land Parcel-1 at Noida, Land Parcel-3 at Mirzapur and Land Parcel-5 at Agra. JIL features in the Reserve Bank of India's first list of non-performing assets accounts and had debt exposure of over INR9,783 crore as of September 2017. The parent company, Jaiprakash Associates Ltd. (JAL), owes more than INR29,000 crore to various banks. On Aug. 8, 2017, the National Company Law Tribunal (NCLT), Allahabad bench accepted lender IDBI Bank's plea and classified JIL as an insolvent company. With this, the board of directors of the company remains suspended. Anuj Jain was appointed as Interim Resolution Professional (IRP) to manage the company's business. The IRP had invited bids from investors interested in acquiring JIL and completing the stuck real estate projects in Noida and Greater Noida. In June 2021, the Committee of Creditors (CoC), which is made up of banks and homebuyers, gave the Suraksha group authorization to acquire JIL. In March 2023, the National Company Law Tribunal (NCLT) authorised the group's bid to acquire JIL and complete construction about 20,000 flats across various projects in the national capital region. JDN NUTRITION: Ind-Ra Affirms BB Term Rating, Outlook Stable ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has affirmed JDN Nutrition Private Limited's (JDNNPPL) bank facilities as follows: -- INR150 mil. Fund based working capital limit* reassigned with IND BB/Stable/IND A4+ rating; and -- INR82.46 mil. (reduced from INR110 mil.) Term loan due on August 2028 affirmed with IND BB/Stable rating. *Previously it was rated as fund/non-fund based limit, now it is rated as a fund-based limit since it is a cash credit limit with no convertibility to a non-fund-based facility. Analytical Approach Ind-Ra continues to take a standalone view of JDNNPL for the rating review. Detailed Rationale of the Rating Action The affirmation reflects JDNNPL's continued small scale of operations, likely modest EBITDA margins, comfortable credit metrics and promoter's experience of over 30 years in processing agro-commodities. Detailed Description of Key Rating Drivers EBITDA Margins Likely to Turn Modest in Near to Mid-term: JDNNPL's EBITDA margins were average at 4.95% in FY23 (FY22: 6.82%) with ROCE of 13.2% (1.8%). FY23 was the first full year of operations for the company since it commenced operations in January 2022. Ind-Ra expects the margins to have declined in FY24 due to JDNPPL's only customer Karnataka Milk Federation (KMF) not allowing JDNNPL to increase selling prices of animal feed, along with increased in raw material costs, in 2QFY24. Ind-Ra expects the margins to remain modest in the near to mid-term unless KMF allows for quarterly selling price increases. Continued Small Scale of Operations: JDNNPL earned revenue of INR2,101 million in FY23 and INR2,351 million in FY24. The 11.85% improvement in the FY24 revenue is attributed to higher capacity utilization of 81% in 11MFY24 (FY23: 73%). This improvement was on the back of a higher demand from JDNPPL's only customer, KMF. Ind-Ra expects revenue to improve in the medium term as the company diversifies and finds other clients. Comfortable Credit Metrics: JDNNPL has comfortable credit metrics with gross interest coverage (operating EBITDA/gross interest expense) of 3.44x in FY23 (FY22: 2.46x) and the net leverage (adjusted net debt/operating EBITDAR) of 2.49x (19.96x). This improvement in the FY23 metrics led by the first full year of operations. Ind-Ra expects the credit metrics to have declined in FY24 due to the decline in margins. The agency expects the ratios to have remained comfortable in the absence of any major debt-funded capex plans. Revenue Visibility with 15-year Contract: JDNNPL has entered into a 15-year agreement with KMF, wherein 80% of the production capacity of the former's cattle feed plant shall be taken over by KMF as minimum assured purchase. While it leads to customer concentration, it also provides long-term revenue visibility. The agreement also states that the contract price will be revised every quarter to account for changes in raw material prices. Promoter Experience: JDNNPL's promoters have an experience of close to three decades in processing agro-commodities. This has facilitated the company to establish strong relationships with suppliers and customers. Liquidity Poor: JDNNPL's cash and cash equivalents were nil in FY23 (FY22: nil). Its average maximum utilization of the fund-based limits was 101.11% during the 12 months ended March 2024. The cash flow from operations declined to negative INR34.83 million in FY23 (FY22: INR18.59 million) due to unfavorable changes in working capital. In FY23, the net working capital cycle shortened drastically to 28 days (FY22: 128 days) since the company was only operational for only three months of FY22 and had an inventory in-hand at year-end. Furthermore, JDNNPL does not have any capital market exposure and relies on banks to meet its funding requirements. Rating Sensitivities Negative: A decline in the scale of operations, leading to deterioration in the overall credit metrics with interest coverage reducing below 2x and/or pressure on liquidity position, on a sustained basis, could lead to a negative rating action. Positive: An improvement in the scale of operations, along with an improvement in the overall credit metrics and improvement in the liquidity profile, on a sustained basis, could lead to a positive rating action. About the Company Incorporated in November 2019, JDNNPL commenced operations in Bengaluru in January 2022 with a 400 tons/day pelletized cattle feed unit. The company is promoted by Jayadev Naidu and Vishal Naidu. JSK CORPORATION: Ind-Ra Keeps BB Rating in NonCooperating --------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained JSK Corporation Private Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND BB/Stable (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR92.5 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND BB/Stable (ISSUER NOT COOPERATING) rating; and -- INR4.57 mil. Term loan due on March 31, 2021 maintained in non-cooperating category with IND BB/Stable (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information Detailed Rationale of the Rating Action The ratings are maintained in the non-cooperating category in accordance with Ind-Ra's policy of Issuer Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with JSK Corporation Private Limited while reviewing the rating. Ind-Ra had consistently followed up with JSK Corporation Private Limited over emails, apart from phone calls. Limitations regarding Information Availability Ind-Ra has reviewed the credit ratings of JSK Corporation Private Limited on the basis of best available information and is unable to provide a forward-looking credit view. Hence, the current outstanding rating might not reflect JSK Corporation Private Limited's credit strength. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption / distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. About the Company JSK was incorporated in October 2013. The company is engaged in the trading of thermo-mechanically treatment bars, structural steels, mild steel plates and strips. The day-to-day operations are managed by Sachin Agrawal, Pratik Agrawal, Avinash Agrawal, Rajeev Agrawal and Gopal Agrawal who are also the directors of the company. K.P.R. AGROCHEM: ICRA Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- ICRA has kept the long-term and short-term rating of K.P.R. Agrochem Limited (KPR) in the 'Issuer Not Cooperating' category. The ratings are denoted as [ICRA]D/[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term- 199.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category Long-term- 100.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Term Loan 'Issuer Not Cooperating' Category Long Term- 49.50 [ICRA]D; ISSUER NOT COOPERATING; Unallocated Rating Continues to remain under 'Issuer Not Cooperating' Category Short-term 151.50 [ICRA]D; ISSUER NOT COOPERATING; Non-fund based Rating continues to remain under Others 'Issuer Not Cooperating' Category As part of its process and in accordance with its rating agreement with KPR, ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite multiple requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information and in line with the aforesaid policy of ICRA, the rating has been continued to the "Issuer Not Cooperating" category. The rating is based on the best available information. K.P.R Agrochem Limited (KPR, erstwhile known as KPR Fertilisers Limited) was setup in 2007 and is the flagship of KPR Group, which was started by Mr. Kovvuri Papa Reddy in 1975. KPR is engaged in manufacturing of NPK Mixtures, Agrochemicals, Di Calcium Phosphate (DCP - animal feed), Singe Super Phosphate (SSP), Sulphuric Acid, Di-Methyl Sulphate (DMS), LABSA, Oleum etc. It has manufacturing facilities in Biccavolu in East Godavari District of Andhra Pradesh and Halavarthi in Koppal District of Karnataka for each of the major products, i.e. NPKL mixtures, SSP, DCP & Sulphuric acid. The company has a separate manufacturing facility for agrochemicals at Balabhadrapuram, Andhra Pradesh. KPR has also set-up a waste heat recovery plant at its manufacturing facility at Biccavolu and Koppal, to generate power in order to optimally use the steam produced during the manufacturing of sulphuric acid. The aggregate capacity of the power plants is 2.5 MW (1.5 MW at Biccavolu and 1 MW at Koppal) which caters to the captive power requirements. KPR has a wholly-owned subsidiary, Sri Sai Swarupa Seeds Private Limited, which is involved in seed processing business and has an installed capacity of 15,000 TPA. KARKINOS HEALTHCARE: CARE Lowers Rating on INR109cr Loan to D ------------------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of Karkinos Healthcare North East Private Limited (KHNEPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term/ 109.00 CARE D/CARE D Revised from Short Term CARE BBB-; Stable/CARE A3 Bank Facilities Rationale and key rating drivers CARE Ratings Limited has revised the ratings assigned to the bank facilities of KHNEPL on account of delays in the servicing of term loan in April 2024 as per the no default statement (NDS) received for the month. The rating action is in line with CARE's policy on default recognition. The delays in debt servicing by KHNEPL were due to adverse liquidity conditions owing to delay in scale-up of operations and non-materialisation of the envisaged equity infusion by investors. Rating sensitivities: Factors likely to lead to rating actions Positive factors * Timely servicing of debt obligations (i.e., principal and interest) for minimum 3 continuous months. * Timely commencement of the hospital resulting into scale up of operations and generation of earnings before interest, taxes, depreciation, and amortisation (PBILDT) profits on a sustained basis. Analytical approach: Standalone CARE Ratings Limited has changed the analytical approach to Standalone from Standalone with factoring the linkages with the parent Karkinos Healthcare Private Limited (KHPL) which hold 100% shares of KHNEPL as the parent was unable to support the subsidiary for making interest payments in April 2024. Detailed description of the key rating drivers: Key weaknesses * Delays in debt servicing: As per the no default statement (NDS) received for April 2024, there were delays in servicing of interest payments on term loan availed by the company. The delays occurred on account of the weakened liquidity position of the Group due to slower-than-anticipated scale-up of operations and non-materialisation of the envisaged equity infusion by the investors. Liquidity: Poor KHNEPL's liquidity remains poor as reflected in the delay in the servicing of interest payments in April 2024. The Group's liquidity profile has weakened on account of its inability to raise funds via equity from the investors as per previously envisaged timelines. In the event of inability of raise the requisite equity, CARE expects continued delays in servicing debt obligations in the near term. Incorporated in 2021, KHNEPL is a wholly-owned subsidiary of KHPL. KHNEPL is setting up a 150-bed multispecialty cancer hospital at Imphal, Manipur. The proposed hospital will provide multiple oncology services, such as diagnosis of cancer, radiation therapy, chemotherapy, minor and major surgeries, palliative care, OPD consultations, and OPD pharmacy. The total cost of project estimated by the company is INR150.62 crore, of which, INR109.10 crore will be funded through the term loan and the remaining amount of INR41.52 crore will be infused by the promoters in the form of long-term funds. According to the revised terms agreed with lenders, the hospital is expected to be operational by January 2025. KP POLYOLEFIN: Ind-Ra Keeps BB+ Rating in NonCooperating -------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained KP Polyolefin Sacks Private Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND BB+/Stable (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR96 mil. Fund Based Working Capital Limit maintained in non- cooperating category with IND BB+/Stable (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR18.88 mil. Term loan due on May 31, 2024 maintained in non- cooperating category with IND BB+/Stable (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information Detailed Rationale of the Rating Action The ratings are maintained in the non-cooperating category in accordance with Ind-Ra's policy of Issuer Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with KP Polyolefin Sacks Private Limited while reviewing the rating. Ind-Ra had consistently followed up with KP Polyolefin Sacks Private Limited over emails, apart from phone calls. Limitations regarding Information Availability Ind-Ra has reviewed the credit ratings of KP Polyolefin Sacks Private Limited on the basis of best available information and is unable to provide a forward-looking credit view. Hence, the current outstanding rating might not reflect KP Polyolefin Sacks Private Limited's credit strength. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption / distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. About the Company Incorporated in 2011, KPPSPL manufactures woven fabric, bags, sacks and tarpaulin for cargo packaging. The company is promoted by KPCL and Middle East Industrial Investment LLC. Its manufacturing facility has an installed capacity of 6,500 metric tons per annum. KUMAR SPINTEX: Ind-Ra Affirms BB- Bank Rating, Outlook Stable ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has taken the following rating actions on Kumar Spintex Private Limited's (KSPL) bank facilities: -- INR140.00 mil. Fund-based working capital limit affirmed; Outlook revised to Stable from Negative with IND BB-/ Stable/ IND A4+ rating; -- INR28.00 mil. Non-fund-based working capital limit affirmed with IND A4+ rating; -- INR10.90 mil. (reduced from INR53.29 mil.) Term loan due on October 2024 affirmed; Outlook revised to Stable from Negative with IND BB-/Stable rating; and -- INR153.80 mil. Proposed term loan assigned with IND BB-/ Stable rating. Detailed Rationale of the Rating Action The Outlook revision reflects an improvement in the liquidity position of the group entity, Venus Denim (debt rated at IND B-/ Stable) from which KSPL derives the majority of its revenue. Detailed Description of Key Rating Drivers Small Scale of Operations: KSPL's scale of operations remained small with its revenue declining to INR1,691.10 million in FY24 (FY23: INR1,902.21 million; FY22: INR1,768.34 million; FY21: INR893.61 million), mainly due to a decrease in sales realization. In FY23, KSPL derived 93.69% of its revenue from the sale of goods to related entities such as Venus Denim (77.57%), Pinaz Texfab Pvt Ltd (9.97%) and Vishal Spintex ('IND BB'/Stable; 6.15%). Ind-Ra expects the revenue to marginally increase in the near to medium term on account of an increase in the sales volume. Its FY24 figures are provisional in nature. Modest Credit Metrics: KSPL's gross interest coverage (operating EBITDA/gross interest expense) deteriorated to 2.77x in FY24 (FY23: 3.09x; FY22: 4.52x) and the net leverage (total adjusted net debt/operating EBITDAR) increased to 2.32x (1.85x; 2.25x) owing to an increase in total debt to INR271.70 million (INR233.28 million; INR269.64 million) and the consequent increase in interest expense and an decrease in the absolute EBITDA to INR116.50 million (INR125.34 million; INR118.98 million). Ind-Ra expects the credit metrics to deteriorate in the near term on account of its proposed debt-funded capex for the installation of solar panels in FY25 and would improve in the medium term on account of a likely timely repayment of its term debt. Stretched Liquidity: KSPL's cash and cash equivalents reduced to INR1.22 million at FYE23 (FYE22: INR1.67 million; FYE21: INR0.91 million; FYE20: INR6.13 million). The average maximum utilization of the fund-based working capital limits was 90.77% over the 12 months ended March 2024. The cash flow from operations plunged to INR41.22 million in FY23 (FY22: INR102.93 million; FY21: negative INR30.85 million) due to unfavorable changes in the working capital. However, the free cash flow was almost stable at INR36.04 million in FY23 (FY22: INR34.50 million; FY21: negative INR38.75 million) due to the absence of any major capex. Ind-Ra expects the cash flow from operation to turn negative on account of unfavorable change in the working capital in FY24 and gradually improve in the medium term. Further, the agency expects the free cash flow to further deteriorate on account of capex of INR300 million. The company would avail a term loan of INR240 million to fund the capex. Highly Fragmented and Competitive Industry: KSPL operates in a highly competitive and fragmented industry characterized by a large number of organized and unorganized players due to low entry barriers. The company's ability to compete, and constantly innovate and evolve with precise marketing strategies would remain crucial to tackle the stiff competition. The profitability depends largely on the prices of cotton and cotton yarn which are governed by various factors such as area under cultivation, monsoon, international demand-supply situation, among others. During the past years, the market has seen volatility in cotton yarn production due to the unstable cotton prices and inconsistent cotton yarn export policy. However, the firm's strong, longstanding relationships with its suppliers always ensures smooth supply of raw materials. Improving EBITDA Margins: The EBITDA margin slightly increased to 6.89% in FY24 (FY23: 6.59%; FY22: 6.73%; FY21: 10.22%) owing to a decrease in operating expenses. The firm's return on capital employed stood at 19.4% in FY23 (FY22: 19.4%; FY21: 14.6%). However, Ind-Ra expects the EBITDA margin to remain slightly lower in the near term owing to the discontinuation of subsidy income FY24 onwards and thereafter improve on account of a reduction in its power costs following the installation of its solar plant for captive consumption. Liquidity Stretched: KSPL's cash and cash equivalents reduced to INR1.22 million at FYE23 (FYE22: INR1.67 million; FYE21: INR0.91 million; FYE20: INR6.13 million). The average maximum utilization of the fund-based working capital limits was 90.77% over the 12 months ended March 2024. The cash flow from operations plunged to INR41.22 million in FY23 (FY22: INR102.93 million; FY21: negative INR30.85 million) due to unfavorable changes in the working capital. However, the free cash flow was almost stable at INR36.04 million in FY23 (FY22: INR34.50 million; FY21: negative INR38.75 million) due to the absence of any major capex. Ind-Ra expects the cash flow from operation to turn negative on account of unfavorable change in the working capital in FY24 and gradually improve in the medium term. Further, the agency expects the free cash flow to further deteriorate on account of capex of INR300 million. The company would avail a term loan of INR240 million to fund the capex. The net working capital cycle increased to 37 days in FY23 (FY22: 30 days; FY21: 62 days) due to an increase in the inventory holding period to 32 days (19 days; 32 days). KSPL has repaid INR42.38 million debt obligation pertaining to FY24 and has repayment obligations of INR10.90 million and INR43.64 million in FY25 and FY26, respectively. KSPL does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. Rating Sensitivities Negative: Deterioration in liquidity and the credit metrics of the group companies, or deterioration in the company's scale of operations or the profitability or the liquidity profile, all on a sustained basis, could be negative for the ratings. Positive: An improvement in liquidity and the credit metrics of all group companies, on a sustained basis, could be positive for the ratings. About the Company Incorporated in June 2002, Ahmedabad-based KSPL manufactures cotton yarn of various count and cotton with capacity of 30,000 spindles at its facility in Ahmedabad, Gujarat. The company is promoted by Balvantrai Agarwal and his family. KSPL is a part of Kumar Group, which has direct presence in weaving, dyeing and manufacturing of yarn in the textile value chain. KUNSTWERK MACHINERY: CRISIL Keeps B Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Kunstwerk Machinery India Private Limited (KMPL) continue to be 'CRISIL B/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 2 CRISIL B/Stable (Issuer Not Cooperating) Export Packing 1 CRISIL B/Stable (Issuer Not Credit Cooperating) Proposed Working 7 CRISIL B/Stable (Issuer Not Capital Facility Cooperating) CRISIL Ratings has been consistently following up with KMPL 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 KMPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on KMPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of KMPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'. Incorporated in 2009, KMPL manufactures agro-based capital goods. The operations are managed by Mr Suraj Ramakrishnan. LAKSHMI STEEL: Ind-Ra Hikes Rating to BB+, Outlook Stable --------------------------------------------------------- India Ratings and Research (Ind-Ra) has upgraded Shri Lakshmi Steel Suppliers' (SLSS) bank facilities to 'IND BB+' from 'IND BB(ISSUER NOT COOPERATING)'. The Outlook is Stable. The detailed rating actions are: -- INR1.250 bil. Fund-based working capital limits upgraded with IND BB+/Stable/IND A4+ rating; and -- INR1.750 bil. Fund-based working capital limits assigned with IND BB+/Stable/IND A4+ rating. Detailed Rationale of the Rating Action The upgrade reflects a continued large scale of operations and modest credit metrics in FY24. Detailed Description of Key Rating Drivers Moderate Credit Metrics: Ind-Ra expects the credit metrics to remain moderate in the medium term owing to increased utilization of the working capital debt in line with growth in the scale of operations and volatility in operating profitability. SLSS's credit metrics deteriorated in FY23, due to an increase in in the overall debt to INR3,950 million (FY22: INR2,773 million). The gross interest coverage (operating EBITDA/gross interest expenses) reduced to 1.72x in FY23 (FY22: 3.35x) and the net leverage (adjusted net debt/operating EBITDA) increased 9.28x (5.85x). The firm does not have any term debt. It had availed a working capital term loan of INR205 million in March 2024 to support its working capital requirements. The company does to have any plan to further enhance the working capital limits. In 11MFY24, the company's interest coverage stood at 1.47x and net leverage at 6.84x. Weak Operating Profitability; Susceptible to Volatile Steel Prices: Ind-Ra expects SLSS’s margins to remain modest and susceptible to volatility in steel prices in the medium term. SLSS operating margins stood at 1.3%-2.8% over FY19-FY24, primarily due to the trading nature of the business and limited value addition. During FY23, the margin declined to 1.55% (FY22: 2.23%) on account of higher operating expenses and lower realizations of hot rolled (HR) products. For 11MFY24, the EBITDA margins stood at 1.99%. The return on capital employed reduced to 10% in FY23 (FY22 : 15.7%). Established Track Record; Authorized Distributorship: SLSS's partners have over three decades of experience in the steel trading industry, leading to a strong understanding of local market dynamics and established relationships with suppliers and customers. SLSS is the authorized distributor for Steel Authority Of India Limited ('IND AA-'/Negative), Rashtriya Ispat Nigam Limited ('IND BB+'/Positive), Nezone Tubes Limited, Apollo Tubes Limited and Surya Roshini Limited for more than two decades. Furthermore, the firm has been an authorized distributor for Jindal Steel and Power Limited and BMM Ispat Limited for a decade. The firm manufactures color-coated sheets, weld mesh, chain link, galvanized plain sheet, and welding electrode, which jointly accounted for around 15% of the total revenue in FY 24. Large Scale of Operations; Revenue Growth backed by Steady Demand: Ind-Ra expects SLSS's revenue to have continued to grow in FY24, supported by a consistent demand for its products. As of February 2024, SLSS's revenue stood at INR25,055 million, backed by its increased sales of scraps. During FY23, SLSS's revenue increased to INR26,886 million (FY22: INR20,439 million), backed by an increase in the demand. The firm generated about 35% of revenue from the trading of HR pipes, coils and sheets, followed by thermo-mechanically treated bars ( about 20%); and the remaining came from mild steel pipes and steel, and galvanized iron pipes and profile sheets. Liquidity Stretched: The average peak utilization of the fund-based limits was over 85% during the 12 months ended April 2024. The firm had cash and cash equivalents of INR84.75 million in FY23 (FY22: INR101.18 million). SLSS's net working capital cycle declined to 53 days in FY23 (FY22: 47 days) on account of a decline in the payable days to 11 days (22 days). The firm has scheduled principal debt repayments of INR76 million in FY25 and INR75.22 million in FY26. The firm borrows funds and ad-hoc limits on need basis from various financial institutions for meeting its working capital requirements and also avails unsecured loans from the promoters' families and friends. As per the management, in case of any liquidity crunch, the promoters will infuse funds if required. Rating Sensitivities Negative: A further weakening of the overall liquidity profile, substantial deterioration in the scale of operations, resulting in the interest coverage falling below 1.5x, could be negative for the ratings. Positive: An improvement in the overall liquidity profile, while maintaining the scale of operations and the interest coverage above 2x, all on a sustained basis, could be positive for the ratings. About the Company SLSS was established in 1986 as a proprietorship firm by Vinod Singhal and was converted into a partnership firm in FY20. It is engaged in the trading of steel products, namely HR pipes and sheets, thermo-mechanically treated bars, mild steel and galvanized iron pipes and structural steel products. The firm has a registered office in Bengaluru and it has branches across Bengaluru, Hubli, Hospet and Mangaluru in Karnataka; Salem, Madurai, Ranipet in Tamil Nadu; Hindupur in Andhra Pradesh; and Kozhikode in Kerala. LYKA BDR: Ind-Ra Keeps B Rating in NonCooperating ------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Lyka BDR International Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND B/Stable (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating action is: -- INR134 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND B/Stable (ISSUER NOT COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information Detailed Rationale of the Rating Action The ratings are maintained in the non-cooperating category in accordance with Ind-Ra's policy of Issuer Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with Lyka BDR International Limited while reviewing the rating. Ind-Ra had consistently followed up with Lyka BDR International Limited over emails, apart from phone calls. Limitations regarding Information Availability Ind-Ra has reviewed the credit ratings of Lyka BDR International Limited on the basis of best available information and is unable to provide a forward-looking credit view. Hence, the current outstanding rating might not reflect Lyka BDR International Limited's credit strength. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption / distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. About the Company Incorporated in 1993, Lyka BDR International is primarily involved in the trading of pharmaceutical products manufactured by Lyka Labs in its factory, located in Ankleshwar, Gujarat. MAJESTIC PROPERTY: CRISIL Keeps B+ Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Majestic Property Developers Private Limited (MDPL) continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term 10 CRISIL B+/Stable (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with MDPL 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 MDPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on MDPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of MDPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. MDPL incorporated in 2006 by Mr Syed Abdul Rehman is constructing one residential project Majestic Fortune in Bangalore. MAKALU TRADING: Liquidation Process Case Summary ------------------------------------------------ Debtor: Makalu Trading Limited 1, 3rd Floor, 14 A, Sukhia Building Cawasji Patel Road, Horniman Circle Fort, Mumbai 400001 Liquidation Commencement Date: May 8, 2024 Court: National Company Law Tribunal, Mumbai Bench - III Liquidator: Ashish Saoji 3rd Floor, MG House Rabindra Nath Tagore Marg, Civil Lines Nagpur 440001 Email: ashishsaoji@gmail.com Email: cirp.makalu@gmail.com Last date for submission of claims: June 7, 2024 MANJEET FIBERS: Ind-Ra Keeps BB+ Rating in NonCooperating --------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Manjeet Fibers Private Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND BB+/Stable (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR81.1 mil. Term loan due on July 31, 2021 maintained in non- cooperating category with IND BB+/Stable (ISSUER NOT COOPERATING) rating; and -- INR380 mil. Fund-based working capital limits Maintained in non-cooperating category with IND BB+/Stable (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information Detailed Rationale of the Rating Action The ratings are maintained in the non-cooperating category in accordance with Ind-Ra's policy of Issuer Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with Manjeet Fibers Private Limited while reviewing the rating. Ind-Ra had consistently followed up with Manjeet Fibers Private Limited over emails, apart from phone calls. Limitations regarding Information Availability Ind-Ra has reviewed the credit ratings of Manjeet Fibers Private Limited on the basis of best available information and is unable to provide a forward-looking credit view. Hence, the current outstanding rating might not reflect Manjeet Fibers Private Limited's credit strength. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption / distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. About the Company Incorporated in June 2012, Manjeet Fibers is engaged in the agro-processing, ginning and pressing of cotton, and allied activities. Its annual installed capacity for processing raw cotton is 1152,000 quintals. MEDVARSITY ONLINE: Ind-Ra Cuts Bank Loan Rating to BB- ------------------------------------------------------ India Ratings and Research (Ind-Ra) has downgraded Medvarsity Online Limited's (Medvarsity) bank loan rating to 'IND BB-' from 'IND BB+' while placing it on Rating Watch with Negative Implications as follows: -- INR150 mil. Fund-based working capital limits Long-term rating downgraded; long term rating and short-term rating placed on Rating Watch with Negative Implications with IND BB-/Rating Watch with Negative Implications/IND A4+/ Rating Watch with Negative Implications; and -- INR50 mil. Proposed fund-based working capital limits* is withdrawn. *The company did not proceed with the instrument as envisaged Analytical Approach Ind-Ra has revised the rating approach from standalone to consolidated of Medvarsity and its subsidiaries due to a continued delay in Medvarsity's business restructuring exercise. There are moderate legal linkages, weak operational and strategic linkage among Medvarsity and its subsidiaries. Detailed Rationale of the Rating Action The downgrade and the Rating Watch with Negative Implications reflect a weakening of Medvarsity's liquidity position due to the delay in its business restructuring exercise, continued losses and an increase in its working capital requirement in FY23 and FY24. Moreover, auditors have observed delays in debt servicing by Apollo Med Skills Limited (AMSL; an 81.75% subsidiary of Medvarsity) for the debt guaranteed by Medvarsity in the audited financial for FY23. Furthermore, the rating reflects the risk associated with the possibility of invocation of the corporate guarantee provided by Medvarsity to the lenders of AMSL. Detailed Description of Key Rating Drivers Stretched Liquidity: The company's average month-end utilization of the fund-based limits was 94% over the 12 months ended March 2024. It had unencumbered cash and cash equivalents of INR146.10 million at FYE23 (FYE22: INR63.80 million) on a consolidated level. The company has annual long-term loan obligations of INR257.26 million in FY25 and FY26. The advance from customer as a percentage of revenue fell to 17% in FY23 (FY22: 29%). The net cash flow from operations turned negative at INR81 million in FY23 (FY22: INR37 million), due to an increase in the working capital requirement. The free cash flow remained negative at INR184 million in FY23 (FY22: negative INR4.5 million) due to an increase in capex. The working capital cycle improved to 57 days in FY23 (FY22: 76 days) in spite of an increase in the receivable days to 132 days in FY23(FY22:121 days) due to the stretch in payable to 75 days in FY23 (FY22:45 days). Furthermore, the management plans to fund any large capex/acquisitions through a mix of internal accruals and promoters' fund. Medvarsity's subsidiary AMSL has defaulted on its payments to the term lenders owing to its tight liquidity situation. Till FYE23, Medvarsity had infused INR293 million to support AMSL in the form of investments and loans. Ind-Ra believes AMSL's liquidity position will remain stretched over the near-to-medium term, marked by accumulated losses, an elongated receivable period and a significant decline in advances from customers. Hence, AMSL will continue to face prolonged debt-servicing issues. Continued Delay in Restructuring Exercise: The company was likely to complete its business restructuring exercise in FY23 under which Medvarsity's core business operations would be shifted to a newly formed company Medvarsity Technologies Private Limited (MTPL) held by the promoters of the Apollo Group, through a slump sale. The proposed restructuring will result in MTPL having only two subsidiaries (one each in Bangladesh and Dubai with no contingent liabilities and the cash being taken forward from the existing level). However, the restructuring exercise has been delayed due to the pending shareholding approval and finalization of valuation. As informed by the management, the restructuring is at an advanced stage and is likely to be completed in 1QFY25. Due to the delay in its restructuring exercise, Medvarsity continues to have significant investment in group entities totaling INR366 million at FYE24 (provisional; FYE23: INR296 million and FYE22: INR316 million) on a standalone level. Medvarsity has also extended a corporate guarantee in favor of the lenders of its subsidiaries (Apollo Med Skills Limited and Apollo Education UK Limited) along with loans and advances on a standalone level. However, the management has stated that any support to the group companies will come directly from the promoters of the Apollo group and not from Medvarsity. Financial support to the tune of INR94.20 million was extended by Medvarsity to its subsidiaries/group entities during FY23 through external borrowings on a standalone level. Modest Scale of Operations with Improvement in Operating Profit: Medvarsity's scale of operations remained modest as the revenue stood at INR1,286.14 million for FY23 (FY22: INR1,339.42 million; FY21: INR606.57 million). However, the company turned EBITDA positive at INR158.56 million in FY23 (FY22: loss of INR31.69 million) due to a decline in other operating expenses, including student-related expenses and allowances along with legal and professional fees in FY23. The company will continue to focus on the healthcare domain and expects higher sales growth from its expansion into other areas of engaging healthcare professionals as well as expanding its overseas operations. Ind-Ra expects the company's medium-to-long term revenue growth to be driven by: (a) a continuous addition of content in specialties of high demand, (b) effective marketing while expanding the presence in allied segments through leveraging the existing 500,000 doctor subscriber base, and (c) entry into new geographies (Bangladesh, and the Middle East). Medvarsity is offering managed learning services for hospital, content development for pharma and healthcare companies, among others, as part of its enterprise sales segment. Furthermore, the company has launched a new platform, Assimilate.one, for society and healthcare professionals. It offers live medical case discussions and physical continuous medical education conferences. The company has also launched several new platforms including Dosily, BookMySIM and Healthjobs.one. Medvarsity continues to add new course offerings in specialties of high demand and strengthen its marketing teams to facilitate revenue growth. However, Ind-Ra will continue to monitor the improvement in the scale along with the company's profitability. Leveraged Capital Structure and Weak Debt Protection Metrics: The company's net leverage (net debt/EBITDA) improved but remained high at 10.45x in FY23 (FY22: negative 43.37x) due to a high amount of long-term borrowings. Also, the company's gross interest coverage (EBITDA/gross interest expenses) was weak at 1.11x for FY23 (FY22: negative 0.23x) on account of the high interest expense. Ind-Ra expects the net leverage to remain high with weak debt protection metrics in FY24 and FY25 on the back of high debt and interest expense. Competitive Industry: The company is exposed to intense competition from other established players in the online education space. However, the differentiating factors such as clinical tie-ups for contact programs and association with Apollo Hospitals can help in expanding its presence in the online healthcare education, while tapping adjacent lines of business by leveraging its existing doctor/healthcare worker database. Strong Parentage: Medvarsity is owned by the promoters of Apollo Hospitals Enterprise Limited (AHEL; debt rated at 'IND AA+'/Stable/'IND A1+'). Apollo Hospitals is a leading hospital chain in India. The parentage helps the company in tying up with clinical partners, getting accredited by various reputed universities and expanding the scope of the business in the B2B segment. Also, the promoters and the managing director of AHEL have extended personal guarantees towards Medvarsity's debt facility. On the operational front, however, linkages with the group are marginal with only a small portion of revenue being generated from a tie-up for training AHEL's staff and AHEL being only one of the many clinical partners of the company's contact programs. Medvarsity has also entered into a tie-up with AHEL to provide complete offline and online recruitment services through its healthcare job portal i.e. Health jobs. Pandemic-led Online Consumer Preference for Education, Long-term Sustainability Critical: The increased availability of high-speed internet and mobile technology, accessibility, affordability and quality of online courses present significant opportunities for online education platforms to reach global audience of healthcare professionals. The company offers professional education to doctors, nurses, and paramedics through the courses designed by in-house teams and approved by accredited institutes. An increase in the number of offerings, along with a shift in the consumer preference for online trainings, has in an increase in Medvarsity's revenue during FY22-FY23. However, the company saw a decline in enrolments during 2HFY23 and FY24, mainly due to competition from the entities offering online upskilling programs and those offering conventional ways of learning which are back on track post the pandemic. However, the comfort of taking up online training with timing flexibility will drive the revenue growth, according to the management. Liquidity Stretched: The company's average month-end utilization of the fund-based limits was 94% over the 12 months ended March 2024. It had unencumbered cash and cash equivalents of INR146.10 million at FYE23 (FYE22: INR63.80 million) on a consolidated level. The company has annual long-term loan obligations of INR257.26 million in FY25 and FY26. The advance from customer as a percentage of revenue fell to 17% in FY23 (FY22: 29%). The promoter funding is crucial for supporting any additional working capital requirement and/or large capex/acquisitions. Rating Sensitivities The Rating Watch with Negative Implications indicates that the ratings might be downgraded or affirmed upon resolution. The rating agency will monitor the corporate guarantees in default extended by Medvarsity to subsidiary AMSL along with the liquidity conditions. Furthermore, any substantial improvement in operational performance, liquidity and the resolution of the guaranteed debt will remain key monitorable for the resolution of the rating watch. Any Other Information Standalone Profile: At a standalone level, Medvarsity's revenue declined to INR578.29 million in FY23 (FY22: INR642.55 million) and its EBITDA margins to 5.29% (8.70%). Also, Medvarsity's credit metrics are stretched with the net adjusted leverage of 54.73x in FY23 (FY22: 24.76x) and interest coverage of 3.24x (20.93x). As per the provisional financials, the standalone revenue declined 21% yoy to INR457 million in FY24 mainly due to a decline in the demand for online education with the resumption of offline education post COVID, along with sales employee attrition during 4QFY24. The EBITDA declined to INR8.94 million mainly due to an increase in the proportion of employee cost to the total revenue. The adjusted debt (including CGs) increased to INR1,695 million in FYE24 (FYE22: INR1,493 million) while its cash & equivalents stood at INR8.8 million for FYE24. The company has fund-based limits (overdraft limit) of INR150 million with an average month-end utilization of the fund-based limits was 94% over the 12 months ended March 2024. It had a cash balance of about INR19.12 million at FYE23 (FYE22: INR109.19 million). About the Company Incorporated in 2000, Medvarsity offers online healthcare training and had over 500,000 trained and certified medical professionals as of January 2024. The company has over 25,000 hours of content with 500,000 active learners on its platform. It has a network of over 50 clinical practice locations and has students across 192 countries. The courses are designed by the in-house team and are then certified by the internationally accredited partners. MEGRAJ HOLDINGS: Ind-Ra Affirms BB NCD Rating, Outlook Stable ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Megraj Holdings Private Limited's (MHPL) non-convertible debentures as follows: -- INR1.40 bil. Non-convertible debentures (NCD)* affirmed with IND BB/Stable rating. *Details in Annexure Analytical Approach To arrive at the ratings, Ind-Ra continues to take a consolidated view of MHPL and its group company Green Gold Animation Private Limited (GGAPL; NCDs rated at 'IND BB'/Stable), along with GGAPL's subsidiaries Green Gold Licensing & Merchandising Pvt. Ltd. (holds 51%), Green Gold Entertainment Pte. Ltd.(100%), Green Gold Corporation US (100%) and Goldon Robot Animations P. Ltd. (90%) due to the strong operational, strategical and legal linkages among them. Ind-Ra has also consolidated Kazoom Holding Private Limited and Tigris Entertainment Private Limited (50%) with the stated companies for the rating review as both these group companies have extended a corporate guarantee for the issued NCDs. MHPL and Kazoom Holding have no active business. Thus, these companies do not contribute to the consolidated financial numbers. Detailed Rationale of the Rating Action The rating reflects the high repayment obligation for NCDs and modest consolidated credit metrics. However, the ratings are supported by growth in the consolidated revenue and EBITDA in FY24, primarily on account of the continuous production of new intellectual property, along with generating revenue through the syndication of library contents. The management has also ventured in the production of live action movies thus, the revenue is likely to increase further over the near-to-medium term. Detailed Description of Key Rating Drivers High Repayment Obligation: The company has scheduled, high repayment obligation for the NCDs, which are redeemable in FY27 along with the redemption premium of INR579.35 million for a total value around INR2,290 million. As per the management, these NCDs are likely to be paid out either through a refinancing arrangement with any non-banking financial company or taking a strategic investor into consideration for selling out some stake in the company. The management is also planning to issue an initial public offering (IPO) over the near-to-medium term, the proceeds from which will used for the NCD repayment. Modest Credit Metrics: The consolidated net leverage (adjusted net debt/operating EBITDAR) deteriorated to 3.48x in FY23 (FY22: 1.28x), and the gross interest coverage (operating EBITDAR/gross interest expense + rents) to 2.77x (6.06x), due to a decline in the EBITDA to INR54.76 million (INR95.55 million). The EBITDA fell on account of a work interruption caused by a reduction of work force after COVID-19; however, the company managed to recover in FY24 with the EBITDA likely to have come in at around INR150 million during the year. The credit metrics are likely to decline as the interest cost will increase from FY25 after the moratorium period. Additionally, the debenture's coupon rate is 7%; however, with the effect of the redemption premium, the effective internal rate of return would be 17%. Established Track Record of Operations: GGAPL has been an animation player for over two decades and has diversified its portfolio in different services such as content production and its sale, animation, licensing, merchandising, gaming, ed-tech and royalty, among others. From FY22, GGAPL has entered into the visual effects, studio services and live action space. It has produced several popular animated series such as Chhota Bheem, Vikram Betaal and Mighty Raju. From FY23, the company has also ventured into the production of live action movies such as Aa Okkati Adakku, Curse of Damyan and Mareechika. Strong Customer Profile: The top five customers of GGAPL (Turner Broadcasting System Inc., MoonBug Entertainment, Netflix Inc., Culver Max Entertainment Pvt. Ltd (Sony Pictures), The Walt Disney Company India (Disney)) together contributed more than 60% to GGAPL's consolidated revenue in FY24 (provisional); Ind-Ra expects the trend to continue over the near-to-medium term. Considering the experience of all these customers, GGAPL has an opportunity to grow in line with customer content requirements. Adequate Revenue Visibility: The consolidated revenue increased to INR1,026.05 million, according to the provisional financials for FY24 (FY23: INR811.47 million, FY22: INR798.96 million). The revenue is likely to increase further over the near-to-medium term on account of GGAPL venturing into the production of live action movies, the continuous production of intellectual property and through the syndication of library content made over the past two decades which has content having a huge popularity among kids in India. Additionally, GGAPL has a diversified portfolio of various services having orders worth INR1,420 million in hand which are likely to be executed in the near term, thereby giving comfortable revenue visibility over the short-to-medium term. Liquidity Stretched: GGAPL's average maximum utilization of the fund-based working capital limits was 99% for the 12 months ended March 2024. At FYE23, the consolidated free cash and cash equivalents stood at INR25.18 million (FYE22: INR33.91 million) and the cash flow from operating activities stood negative at INR77.79 million (INR224.3 million). Furthermore, its fixed deposits came in at INR931.31 million at FYE23 (FYE22: INR310.375 million). GGAPL plans to incur an overall capex of around INR240 million up to FY27. The company has to pay an annual interest of around INR110 million in FY25 and FY26. Ind-Ra expects the liquidity to remain stretched over the medium term, considering the maturity of the proposed NCDs of INR1,600 million, along with the redemption premium of INR500 million over the three years ending June 2026. Rating Sensitivities Negative: Substantial liquidity deterioration, a significant decrease in the revenue and operations and continued modest credit metrics will lead to a negative rating action. Positive: A substantial improvement in the liquidity, an advance arrangement of refinancing, a significant increase in the revenue, with strong credit metrics will lead to a positive rating action. Disclosures for CE Rating 1) UNSUPPORTED RATING Ind-Ra has assigned the unsupported rating of IND BB/ Stable. The unsupported rating is arrived at without factoring in the explicit credit enhancement (CE). It helps in understanding the extent of CE factored into the instrument rating. The analytical approach, key rating drivers, liquidity and sensitivities for unsupported rating are the same as that for the bank loan facility ratings. 2) INSTRUMENT AND FINANCIAL CONVENANTS (REFER ANNEXURE) 3) ADEQUACY OF CE STRUCTURE GGAPL and its group companies Kazoom Holding, Green Gold Licensing & Merchandising India, Golden Robot Animation and Tigris Entertainment have provided a corporate guarantee for MHPL's NCDs. Since the guarantee does not meet Ind-Ra's requirement of the presence of a pre-default clause for guarantee invocation and a well-defined payment mechanism, it has not been factored as an explicit CE and hence the CE suffix has not been added to the rating of NCDs. About the Company MHPL is the company Incorporated for the strategic purpose and will be merged in GGAPL a Hyderabad-based Indian animation company, with offices in India, Singapore, Philippines and the US. It is known for creating the Chhota Bheem television series and the Krishna film series. GGAPL was founded by Rajiv Chilaka in January 2001. MONALISA ENGICONS: Ind-Ra Keeps BB- Rating in NonCooperating ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has maintained Monalisa Engicons' instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND BB-/Stable (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR15 mil. Fund Based Working Capital Limit maintained in non- cooperating category with IND BB-/Stable (ISSUER NOT COOPERATING) rating; and -- INR80 mil. Non-Fund Based Working Capital Limit maintained in non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information Detailed Rationale of the Rating Action The ratings are maintained in the non-cooperating category in accordance with Ind-Ra's policy of Issuer Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with Monalisa Engicons while reviewing the rating. Ind-Ra had consistently followed up with Monalisa Engicons over emails, apart from phone calls.. Limitations regarding Information Availability Ind-Ra has reviewed the credit ratings of Monalisa Engicons on the basis of best available information and is unable to provide a forward-looking credit view. Hence, the current outstanding rating might not reflect Monalisa Engicons' credit strength. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption / distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. About the Company Incorporated in December 2005, Monalisa Engicons is a partnership firm that undertakes government construction projects such as irrigation, road work and bridge. MUTHOOT FINANCE: Moody's Affirms 'Ba2' CFR, Outlook Remains Stable ------------------------------------------------------------------ Moody's Ratings has affirmed Muthoot Finance Limited's Ba2 long-term corporate family rating and maintained the stable outlook. RATINGS RATIONALE The rating affirmation with stable outlook reflect Moody's expectation that Muthoot's financial performance will remain stable over the next 12–18 months, supported by its leading franchise and solid track record of providing loans against gold jewelry, its strong profitability and capital. Although the company is funded by confidence-sensitive market borrowings, the short duration and liquid nature of its loans as well as its well-established access to banks and debt market investors in India and overseas for funding help temper the risks. Muthoot's superior operational controls and risk management support its growth and asset quality. Despite strong competition and aggressive lending practices by other nonbank finance companies (NBFCs) and banks, the company has maintained its cautious underwriting and risk controls, resulting in consistent loan growth and stable asset quality, which are credit positive. Muthoot has managed to keep its credit costs below 0.5% of its gross loans in part because of a significant increase in gold prices, which has helped the company recover the loan principal amount and most of the accrued interest. The maximum 75% loan-to-value restriction under the central bank's norms has helped the company quickly liquidate the collateral if a borrower is unable to service a loan. Muthoot has been diversifying into non-gold loan segments since 2017, including microfinance, home loans and vehicle loans. The asset quality of the non-gold loan segments is susceptible to weaknesses in the operating environment, evident from the increase in nonperforming loans during the pandemic. Nevertheless, Moody's expects such loans to make up less than 15% of the company's loan book, hence limiting their impact on its overall asset quality. Muthoot is the most profitable among Indian banks and NBFCs rated by Moody's, and its profitability is a key credit strength. Its profitability has nevertheless gradually moderated, with its annualized return on assets at 4.7% for the first nine months of the fiscal year ended March 2024 (fiscal 2024), compared with 4.9% for the same period a year ago and 5.6% for first nine months of fiscal 2022, as its net interest margin narrowed because of strong competition. The company's superior profitability supports internal capitalization, reflected in its strong Tier 1 ratio of 30.1% at the end of December 2023. Muthoot's funding remains steady because the secured and highly liquid nature of its loans enables it to obtain funding from banks and debt investors. The company has also diversified its funding sources to more stable, long-term funding sources over the past year, a credit positive. Muthoot's Ba2 CFR reflects its Ba1 financial profile and Ba2 operating environment score for gold financing in India, indicating that the company's credit profile is stronger than the average of its peers in the sector. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING Given Muthoot's strong credit profile, Moody's could upgrade the company's rating if it maintains its dominance in the gold financing industry, supported by its strong operational controls and risk management amid competition from other NBFCs and banks. An upgrade will also depend on the operating environment for gold financiers in India remaining stable, which will support consistent and predictable profitability and debt-servicing ability. On the other hand, Moody's will downgrade Muthoot's rating if the company's asset quality deteriorates, such that its credit costs increase beyond 3% of its loans; or if its liquidity deteriorates because of significant mismatches in the maturity profiles of its assets and liabilities. A downgrade is also likely in the event of a significant regulatory change that affects the company's growth or profitability. The principal methodology used in this rating was Finance Companies Methodology published in November 2019. Muthoot Finance Limited is headquartered in Kochi and reported total assets of INR929.2 billion as of December 31, 2023. NEW JAI: CARE Keeps D Debt Rating in Not Cooperating Category ------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of New Jai Bharat Educational Trust (NJBET) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 11.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Rationale and key rating drivers CARE Ratings Ltd. had, vide its press release dated March 2, 2023, placed the rating(s) of NJBET under the 'issuer non-cooperating' category as NJBET had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. NJBET continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated January 16, 2024, January 26, 2024, February 5, 2024. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). M/s New Jai Bharath Educational Trust (NJBET) is a non-minority, charitable trust registered under Section 12A of the Income Tax Act. The main objective of the trust is to provide education services and engage in social welfare activities to the rural population. Presently, the trust runs engineering college offering five undergraduate engineering courses which are approved by the All India Council for Technical Education (AICTE) and is affiliated to Anna University, Chennai. The campus is spread over 20 acres of land located at Trichy district, Tamil Nadu and build up area of 95,000 sq. ft. NORTHWAY INFRATECH: Ind-Ra Keeps BB- Rating in NonCooperating ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Northway Infratech Private Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND BB-/ Stable (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating action is: -- INR67.7 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND BB-/Stable (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information Detailed Rationale of the Rating Action The ratings are maintained in the non-cooperating category in accordance with Ind-Ra's policy of Issuer Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with Northway Infratech Private Limited while reviewing the rating. Ind-Ra had consistently followed up with Northway Infratech Private Limited over emails, apart from phone calls. Limitations regarding Information Availability Ind-Ra has reviewed the credit ratings of Northway Infratech Private Limited on the basis of best available information and is unable to provide a forward-looking credit view. Hence, the current outstanding rating might not reflect Northway Infratech Private Limited's credit strength. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption / distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. About the Company Incorporated in August 2008 in Bhubaneswar, Odisha, Northway Infratech executes civil construction projects and provides logistic services for the transportation of petroleum coke. PALAK FERRO: ICRA Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------- ICRA has kept the long-term and short-term rating of Palak Ferro Alloys (PFA) in the 'Issuer Not Cooperating' category. The ratings are denoted as [ICRA]D/[ICRA]D; ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 6.10 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category Long-term– 0.10 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Term Loan 'Issuer Not Cooperating' Category Long-term/ 13.80 [ICRA]D/[ICRA]D; ISSUER NOT Short Term COOPERATING; Rating Continues to Unallocated remain under 'Issuer Not Cooperating' Category As part of its process and in accordance with its rating agreement with PFA, ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite multiple requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information and in line with the aforesaid policy of ICRA, the rating has been continued to the "Issuer Not Cooperating" category. The rating is based on the best available information. Established in 2008 as a proprietorship firm by Mr. Rahul Parwani, PFA is engaged in the manufacturing of ferro alloys and manganese oxides. The firm has its manufacturing facility located at Nagpur, Maharashtra. PFA has an installed capacity of 1500 MTPA for manufacturing ferro alloys such as medium carbon (MC) –ferro manganese, low carbon (LC) –2 ferro manganese and silico manganese, and 1500 MT for manufacturing manganese oxides. Ferro alloys find application in the steel industry whereas manganese oxides are used in the fertilizer industry. PMS-COM-PRO: Insolvency Resolution Process Case Summary ------------------------------------------------------- Debtor: PMS-COM-PRO (India) Private Limited Registered Address: 39, 2nd Floor, Shahpurjat New Delhi - 110049 Delhi, India Insolvency Commencement Date: April 29, 2024 Court: National Company Law Tribunal, Indore Bench Estimated date of closure of insolvency resolution process: October 26, 2024 Insolvency professional: Mohd Nazim Khan Interim Resolution Professional: Mohd Nazim Khan MNK House 9A/9-10, Basement East Patel Nagar New Delhi 110008 Email: nazim@mnkassociates.com Email: cirp.pms@gmail.com Last date for submission of claims: May 25, 2024 PREMIER EXPORTS: Ind-Ra Keeps BB Rating in NonCooperating --------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Premier Exports International's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND BB/Stable (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating action is: -- INR150 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND BB/Stable (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information Detailed Rationale of the Rating Action The ratings are maintained in the non-cooperating category in accordance with Ind-Ra's policy of Issuer Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with Premier Exports International while reviewing the rating. Ind-Ra had consistently followed up with Premier Exports International over emails, apart from phone calls. Limitations regarding Information Availability Ind-Ra has reviewed the credit ratings of Premier Exports International on the basis of best available information and is unable to provide a forward-looking credit view. Hence, the current outstanding rating might not reflect Premier Exports International's credit strength. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption / distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. About the Company Established in 1980 as a partnership firm, PEI is engaged in the processing and export of frozen marine products such as shrimps, squid and cuttlefish. The processing includes peeling, cleaning and freezing of shrimps. R.J. CHATHA: CRISIL Keeps B+ Debt Ratings in Not Cooperating ------------------------------------------------------------ CRISIL Ratings said the ratings on bank facilities of R.J. Chatha Rice Mills (RJCRM) continue to be 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7 CRISIL B+/Stable (Issuer Not Cooperating) Export Packing 15 CRISIL B+/Stable (Issuer Not Credit Cooperating) Proposed Long Term 2 CRISIL B+/Stable (Issuer Not Bank Loan Facility Cooperating) Warehouse Receipts 8 CRISIL B+/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with RJCRM 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 RJCRM, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on RJCRM is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of RJCRM continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. RJCRM, a partnership firm set up by Mr R S Chatha and Mr J S Chatha in 1971, processes basmati rice. The firm exports to the Middle East, the US, and Canada. Sales in the domestic market, under own brands Heera and Anarkali, contribute 30% to revenue. The firm has rice milling capacity of 5 tonne per hour (tph) and sorting capacity of 4 tph. R.K. NATURAL: Ind-Ra Keeps B Rating in NonCooperating ----------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained R.K. Natural Fibre Private Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND B/Stable (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating action is: -- INR68 mil. Fund Based Working Capital Limit maintained in non- cooperating category with IND B/Stable (ISSUER NOT COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information Detailed Rationale of the Rating Action The ratings are maintained in the non-cooperating category in accordance with Ind-Ra's policy of Issuer Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with R.K. Natural Fibre Private Limited while reviewing the rating. Ind-Ra had consistently followed up with R.K. Natural Fibre Private Limited over emails, apart from phone calls. Limitations regarding Information Availability Ind-Ra has reviewed the credit ratings of R.K. Natural Fibre Private Limited on the basis of best available information and is unable to provide a forward-looking credit view. Hence, the current outstanding rating might not reflect R.K. Natural Fibre Private Limited's credit strength. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption / distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. About the Company RKN was incorporated in 2010 and is engaged in the business of ginning and pressing of raw cotton. The company's plant is located near Vadodara with production capacity of 16,000MT per annum. R.K.R. GOLD: Ind-Ra Cuts Term loan Rating to D ---------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded the rating on R.K.R. Gold Private Limited's (RKRGPL) bank facilities to 'IND D (ISSUER NOT COOPERATING)' from 'IND BB+ (ISSUER NOT COOPERATING)'/Stable while maintaining the ratings in the non-cooperating category. The issuer did not participate in the rating review despite continuous requests and follow-ups by the agency. The rating is based on the best available information. Therefore, investors and other users are advised to take appropriate caution while using the rating. The detailed rating actions are: -- INR650 mil. Fund-based working capital limit (Long term/short term) downgraded with IND D (ISSUER NOT COOPERATING) rating; and -- INR250 mil. Non-fund-based working capital limit (short term) downgraded with IND D (ISSUER NOT COOPERATING) rating. Note: Issuer did not cooperate; based on the best-available information Detailed Rationale of the Rating Action The downgrade reflects delays in debt servicing by RKRGPL. Ind-Ra has relied on the information available in the public domain. However, Ind-Ra has not been able to ascertain the reason for the delays, as the company has been non-cooperative. The ratings continue to be maintained in non-cooperating category in accordance with Ind-Ra's Guidelines on What Constitutes Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with RKRGPL while reviewing the rating. Ind-Ra had consistently followed up with RKRGPL over emails, apart from phone calls. The issuer has also not been submitting their monthly no default statement (NDS) since January 2020. Limitations regarding Information Availability Ind-Ra is unable to provide an updated forward-looking view on the credit rating of RKRGPL, as the agency does not have adequate information to review the rating. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption / distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. RKRGPL has been non-cooperative with the agency since January 17, 2020. About the Company Incorporated in 2006 in Coimbatore, Tamil Nadu, RKRGPL manufactures and distributes gold jewelry. RAGHUVEER METAL: Ind-Ra Keeps C Rating in NonCooperating -------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Raghuveer Metal Industries Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND C (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR90 mil. Fund Based Working Capital Limit maintained in non- cooperating category with IND C (ISSUER NOT COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating; and -- INR40 mil. Non-Fund Based Working Capital Limit maintained in non-cooperating category with IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information Detailed Rationale of the Rating Action The ratings are maintained in the non-cooperating category in accordance with Ind-Ra's policy of Issuer Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with Raghuveer Metal Industries Limited while reviewing the rating. Ind-Ra had consistently followed up with Raghuveer Metal Industries Limited over emails, apart from phone calls. Limitations regarding Information Availability Ind-Ra has reviewed the credit ratings of Raghuveer Metal Industries Limited on the basis of best available information and is unable to provide a forward-looking credit view. Hence, the current outstanding rating might not reflect Raghuveer Metal Industries Limited's credit strength. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption / distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. About the Company Incorporated in 1997, Raghuveer Metal Industries manufactures steel ingots, thermo-mechanically treated and cold twisted bars in Ajmer (Rajasthan). It has an annual installed capacity of 46,800 tons of steel ingots and 60,000 tons of bars. RELIGARE FINVEST: Ind-Ra Corrects October 19, 2023 Rating Release ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) rectifies Religare Finvest Limited's (RFL) rating published on October 19, 2023 to state the liquidity indicator as poor. The amended version is as follows: India Ratings and Research (Ind-Ra) has taken following rating actions on Religare Finvest Limited's (RFL) debt instruments: -- INR2.5 mil. Long-term bank loans affirmed with IND D rating; and -- INR1.2 mil. Lower tier 2 sub-debt (long term)#* is withdrawn. #Details in Annexure * Ind-Ra has withdrawn the rating as the agency has received no dues certificate from the lenders of the facility. This is consistent with Ind-Ra's Policy on Withdrawal of Ratings. Key Rating Drivers Liquidity Indicator - Poor: The affirmation reflects RFL's continued delays in debt servicing since April 2019 due to misappropriation of funds by the erstwhile promoters. The company has been under the corrective action plan advised by the Reserve Bank of India (RBI) since January 2018. RFL had proposed a debt resolution plan to the RBI with Religare Enterprises Ltd (REL) as the promoter/shareholder in March 2020; however, the RBI, vide a letter dated 11 February 2022, advised RFL that its restructuring cannot be implemented with REL continuing as the promoter. Subsequently, RFL proposed a one-time settlement (OTS) with the lenders. Thereafter, on 30 December 2022, RFL, along with the parent, REL, entered into a settlement agreement with its secured lenders (including their unsecured exposure) in connection with the OTS for the outstanding dues and completed the entire payment of INR21.8 billion on 8 March 2023. REL, on behalf of RFL, paid the overdue NCDs by 26 September 2023 by making a settlement payment of INR0.95 billion. RFL made the payment using resources from its own balance sheet and with assistance from REL. RFL continues to have an unsecured exposure of INR2.5 billion from ICICI Bank Ltd, its unsecured lender/investor. Furthermore, RFL has already applied for the removal of the corrective action plan with the RBI, which is still under process. RFL plans to revive its business with its current collections and will continue to focus on lending secured and unsecured loans to micro and small enterprises, and building a granular book. RFL is divesting its subsidiary, Religare Housing Development Finance Corporation Limited (RHDFCL, 87.5%), to its parent REL, which will help RFL to focus and grow its own loan book. Post the acquisition, RHDFCL shall become a direct subsidiary of REL. The said transaction is subject to the receipt of necessary statutory and regulatory approvals and the fulfilment of other conditions precedent. RFL shall also continue to pursue recovery from the corporate loan book and its fixed deposits from Lakshmi Vilas Bank, along with the interest therein. Rating Sensitivities Positive: Timely debt servicing for at least three consecutive months would result in a positive rating action. Company Profile RFL is a non-bank finance company that provides loans primarily to micro, small and medium enterprises through its product offerings of loan against property and working capital loans. RENEW POWER: Fitch Affirms 'BB-' Rating on $585M Sr. Secured Notes ------------------------------------------------------------------ Fitch Ratings has affirmed India-based ReNew Power Restricted Group 4's (ReNew RG4) USD585 million senior secured notes due 2028 at 'BB-'. The Outlook is Stable. RATING RATIONALE The rating on the notes benefits from parent ReNew Private Limited's (ReNew, BB-/Stable) access to funding to refinance its US dollar bonds, supported by a full-tenor unconditional guarantee from the parent. ReNew is one of the largest renewable-energy independent power producers in India with a total renewable asset base of over 13GW, including projects under operation, in the pipeline and under development. The restricted group includes 10 renewable projects of ReNew with a total capacity of 803.1MW spread across seven states in India. The portfolio has nine wind assets (753.1MW) and one solar project (50MW). All of the assets have been operating for more than six years, except one 300MW wind project, which started operations in early 2021. This 300MW project is contracted with sovereign-owned Solar Energy Corporation of India (SECI), while the rest are contracted with weaker state-owned distribution companies. KEY RATING DRIVERS Proven Technology, Lack of Maintenance Reserve - Operation Risk: Midrange Fitch considers the technologies deployed in ReNew RG4's wind and solar projects as proven. Most of the wind turbines are procured from some of the world's largest manufacturers, while the solar modules are sourced from an internationally well-known supplier. The O&M for five of the nine wind projects is done by an affiliate company, ReNew Services Private Limited, at a fixed price, with 4%-5% annual price escalation, for shorter but extendable tenors. For the remaining four wind projects, the O&M is done by the original equipment manufacturers under 10-12 years contracts. The O&M for the sole solar project is carried out by the affiliate under a five-year fixed-price contract, with 5% annual price escalation. The operation risk assessment is constrained at 'Midrange' as the operating cost forecast is not validated by an independent technical advisor and the bond indenture does not have a maintenance reserve account. Wide Forecast Spread, Adequate Operating Performance - Revenue Risk (Volume): Weaker The energy yield forecast produced by third-party experts indicates an overall P50/one-year P90 spread of 18%, leading to a 'Weaker' assessment for volume risk. The portfolio has a capacity-weighted average record of six years as all assets have been operating for more than six years, except the 300MW wind project that has operated for around 3 years. Actual load factors by the portfolio in the last few years were moderately volatile. Hence, Fitch applies a lower haircut of 7% on the volume forecast in its base and rating cases. The curtailment risk is limited in India due to the "must-run" status of renewable projects. Fixed Long-Term Prices, Minimal Renewal Risk - Revenue Risk (Price): Midrange ReNew RG4 contracts 63% of its total capacity with state-owned distribution companies and the balance with SECI under long-term fixed-price power-purchase agreements (PPAs), which protect the portfolio from merchant-price volatility. These PPAs have a capacity-weighted residual life of about 16 years, while the overall RG's PPA residual life stands at 18 years. The only contract with a shorter fixed-price tenor of 13 years, with a remaining life of two years, is a 28MW wind project signed with Maharashtra's state-owned distribution company. However, Fitch expects management to recontract the asset, as it will have a residual life of about 12 years at the end of the PPA. Fitch constrains the price risk assessment at 'Midrange' in light of the low but certain merchant-price exposure due to this asset. Fully-Hedged Structure, Manageable Refinancing Risk - Debt Structure: Midrange Noteholders are protected by ReNew RG4's ring-fenced structure and covenants. It has a standard cash distribution waterfall and a lock-up test at a backward-looking 1.3x interest-service coverage ratio for cash outflow. The notes are fixed-rate. The restricted group will not maintain a debt-service reserve or a major maintenance reserve account, but this will be partly offset by the excess cash it must retain in the last year of the notes' tenor. Refinancing risk is mitigated by the guarantee by the parent and ReNew RG4's access to banks and capital markets, with support from the PPAs, which extend beyond the notes' maturity. Management has fully hedged the bonds through cross-currency swaps till January 2026. Financial Profile Fitch's forecast assumes that the outstanding US dollar bond at maturity will be refinanced by another debt that will amortise across the remaining PPA terms or the projects' useful life, whichever is longer. Fitch does not rate the state-owned distribution companies that purchase power from some projects of the restricted group. These counterparties have weak credit profiles and histories of payment delays, but exposure to multiple counterparties mitigates risk. Fitch still believes it is prudent for such projects to meet a higher threshold to achieve the same rating as other projects with strong counterparties, all else being equal. Hence, Fitch bases the credit assessment of the notes on the indicative debt-service coverage ratio (DSCR) thresholds applicable to merchant projects for the share of exposure to state-owned distribution companies, instead of the ones for fully contracted projects, while cash flow is evaluated based on the contracted prices. SECI's credit quality does not constrain the rating, as Fitch views revenue exposure to SECI as a systematic sector risk. Fitch's base case assumes P50 generation, a 7% production haircut and an 11% refinancing interest rate, which results in an average annual DSCR of 2.69x, 1.47x and 1.18x over the remaining bond life, portfolio life and refinancing period, respectively. Fitch's rating case assumes one-year P90 generation and a 7% production haircut. Fitch also applies a 15% stress on management's operating expense forecast and an 11% refinancing interest rate. Its rating case results in an average annual DSCR of 2.20x, 1.12x and 0.87x over the remaining bond life, portfolio life and refinancing period, respectively. The restricted group will benefit from the parent's access to funding for refinancing its US dollar bond, supported by a full-tenor unconditional guarantee from ReNew. PEER GROUP ReNew RG4 can be compared to India Green Power Holdings (IGPH, US dollar notes: BB-/Stable). Both issuers' portfolios are dominated by wind assets, with IGPH at 78% and ReNew RG4 at 94%. While IGPH has a much stronger financial profile with rating-case DSCR of 1.46x leading to a 'bb' credit assessment, its rating is notched one level down owing to orphan issuance structure. IGPH also draws a given interest income from the parent ReNew on inter-company loans accounts for a significant portion of cash flow available for debt servicing during the refinancing period. ReNew RG4's rating-case DSCR is lower at 0.87x during the refinancing period. However, its rating is driven by the parent's access to funding and full-tenor unconditional guarantee. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A downgrade of the parent guarantor Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade An upgrade of the parent guarantor TRANSACTION SUMMARY The US dollar bonds are co-issued by 10 operating entities that are owned by ReNew. The due and punctual payment of all amounts payable by each co-issuer under the US dollar notes is fully and unconditionally guaranteed on a senior basis by each of the other co-issuers, and fully guaranteed on a senior basis by ReNew. The co-issuers used the proceeds mostly to repay their then-existing indebtedness. The notes are issued under External Commercial Borrowings guidelines by the central bank of India. This is a cleaner, single-tier route that was also implemented by Adani Green's two rated restricted groups earlier. CREDIT UPDATE ReNew RG4's electricity generation improved by 6% yoy in the financial year ended March 2024 (FY24). Almost all projects either showed marginal improvement or remained at a similar level of generation as last year. The portfolio's receivable position improved by FYE24 from FYE23, thereby continuing the trend from last year. The receivable position improved across almost all of the assets following the late payment surcharge scheme implemented by India's central government, along with various other reform measures. The management changed the hedging on the bonds so that they are now fully hedged through cross-currency swaps till January 2026, compared to the options hedging previously. This has increased the all-in cost slightly but now the bonds are not exposed to rupee depreciation until the contracted strike price. 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 ----------- ------ ----- ReNew Power Restricted Group 4 ReNew Power Restricted Group 4/Project Revenues - First Lien/1 LT LT BB- Affirmed BB- RISHI TRADERS: Ind-Ra Cuts Bank Loan Rating to D ------------------------------------------------ India Ratings and Research (Ind-Ra) has downgraded Rishi Traders' bank loan rating to 'IND D (ISSUER NOT COOPERATING)' from 'IND B+ (ISSUER NOT COOPERATING)' while maintaining in the non-cooperating category. The issuer did not participate in the rating review despite continuous requests and follow-ups by the agency. The rating is based on the best available information. Therefore, investors and other users are advised to take appropriate caution while using the rating. The instrument-wise rating actions are: -- INR80 mil. Fund-based working capital limit (Long term) downgraded with IND D (ISSUER NOT COOPERATING) rating; and -- INR13 mil. Term loan (Long INR13 mil.) downgraded IND D (ISSUER NOT COOPERATING) rating. Note: Issuer did not cooperate; based on the best-available information Detailed Rationale of the Rating Action The downgrade reflects delays in debt servicing by Rishi Traders. Ind-Ra has relied on information available in the public domain. However, Ind-Ra has not been able to ascertain the reason for the delays, as the company has been non-cooperative. The ratings continue to be maintained in non-cooperating category in accordance with Ind-Ra's Guidelines on What Constitutes Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with Rishi Traders while reviewing the ratings. Ind-Ra had consistently followed up with Rishi Traders over emails starting from 28 August 2017, apart from phone calls. The issuer has also not been submitting their monthly no default statement. Limitations regarding Information Availability Ind-Ra is unable to provide an updated forward-looking view on the credit ratings of Rishi Traders, as the agency does not have adequate information to review the ratings. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption / distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. Rishi Traders has been non-cooperative with the agency since August 28, 2017. About the Company Established in 2011, Rishi Traders is engaged in the ginning and pressing of raw cotton. The firm has a manufacturing unit in Nagpur, Maharashtra, with a capacity to produce 250 bales of cotton per day. It is managed by Kirti Kumar Patel, Vivek Kirti Kumar Patel and Viral Kirti Kumar Patel. S A MULLA: CARE Keeps C Debt Rating in Not Cooperating Category --------------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of S A Mulla (SAM) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 5.00 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 6.00 CARE A4; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Rationale and key rating drivers CARE Ratings Ltd. had, vide its press release dated March 1, 2023, placed the rating(s) of SAM under the 'issuer non-cooperating' category as SAM had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. SAM continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated January 15, 2024, January 25, 2024, February 4, 2024. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). S A Mulla was incorporated as a Partnership firm by Mr. Saifuddin Appalal Mulla and Mr. Moinuddin Saifuddin Mulla in 2014. The firm is engaged in the business of civil construction such as laying of roads and construction of buildings and bridges in the states of Karnataka and is registered contractor with Public Works Department (PWD) and Road and Building Departments (R&B), Karnataka. S.KADIRVEL: Ind-Ra Keeps BB Rating in NonCooperating ---------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained S.Kadirvel & Company's (SKC) bank facilities' ratings in the non-cooperating category and has simultaneously withdrawn the same. The detailed rating actions are: -- INR31 mil. Term loan* due on December 2026 maintained in non- cooperating category and withdrawn; -- INR130 mil. Fund-based working capital limit^ maintained in non-cooperating category and withdrawn; and -- INR80 mil. Bank guarantee# Maintained in non-cooperating \ category and withdrawn. Note: ISSUER NOT COOPERATING: The issuer did not cooperate, based on the available information WD- Rating Withdrawn *Maintained at 'IND BB/Stable (ISSUER NOT COOPERATING)' before being withdrawn ^Maintained at 'IND BB/Stable (ISSUER NOT COOPERATING)'/'IND A4+ (ISSUER NOT COOPERATING)' before being withdrawn #Maintained at 'IND A4+ (ISSUER NOT COOPERATING)' before being withdrawn Detailed Rationale of the Rating Action The rating has been maintained in the non-cooperating category before being withdrawn because the issuer did not participate in the rating exercise despite repeated requests by the agency through phone calls and emails, and has not provided information about latest audited financial statement, sanctioned bank facilities and utilization, business plans and projections for the next three years, and management certificate. This is in accordance with Ind-Ra's policy of 'Guidelines on What Constitutes Non-cooperation'. Ind-Ra is no longer required to maintain the ratings, as the agency has received no-objection certificate from lender and a request for withdrawal of ratings from the company. This is consistent with Ind-Ra's Policy on Withdrawal of Ratings. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interactions with SKC while reviewing the rating. Ind-Ra had consistently followed up with SKC over emails, apart from phone calls. The issuer has also not been submitting the monthly no default statement since March 2023. Limitations regarding Information Availability Ind-Ra is unable to provide an updated forward-looking view on the credit rating of SKC, as the agency does not have adequate information to review the rating. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption/distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. SKC has been non-cooperative with the agency since 8 September 2023. About the Company Based in Coimbatore, SKC engages with the government to build houses, beautification of lake, installing light poles for the Public Works Department and housing board of Tamil Nadu government. SAGAR MOTORS: Ind-Ra Keeps BB+ Rating in NonCooperating ------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Sagar Motors' instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND BB+/Stable (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating action is: -- INR700 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND BB+/Stable (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information Detailed Rationale of the Rating Action The ratings are maintained in the non-cooperating category in accordance with Ind-Ra's policy of Issuer Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with Sagar Motors while reviewing the rating. Ind-Ra had consistently followed up with Sagar Motors over emails, apart from phone calls. Limitations regarding Information Availability Ind-Ra has reviewed the credit ratings of Sagar Motors on the basis of best available information and is unable to provide a forward-looking credit view. Hence, the current outstanding rating might not reflect Sagar Motors's credit strength. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption / distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. About the Company Incorporated in 2014, SM is a registered partnership firm engaged in the dealership business for passenger vehicles of Tata Motors. Varun Sagar and Rajesh Sagar are the company partners. It commenced operations in March 2016. It has seven showrooms and three workshops across Delhi and National Capital Region. SAMRIDDHI TRADERS: Ind-Ra Cuts Rating to B+, Outlook Negative ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Shree Samriddhi Traders' (SST) bank facilities' ratings to 'IND B+' from 'IND BBB-'. The Outlook is Negative. The detailed rating actions are: -- INR200 mil. Fund-based working capital limit downgraded with IND B+/Negative/IND A4 rating; -- INR285 mil. Non-fund-based working capital limit downgraded with IND A4 rating; and -- INR40 mil. Proposed fund-based working capital limit downgraded with IND B+/Negative/IND A4 rating. Analytical Approach Ind-Ra continues to take a standalone view of SST for arriving at the ratings. Detailed Rationale of the Rating Action The downgrade and the Negative Outlook reflect the expiry of the company's liquor business license for FY24-FY25 and the absence of any renewal process for liquor business, which indicates the closure of SST's business operations in FY25. Detailed Description of Key Rating Drivers Stretched Liquidity Position: SST's average maximum utilization of the fund-based limits was 84.14% during the 12 months ended March 2024. The cash and cash equivalents fell to INR203.33 million at FYE23 (FYE22: INR363.12 million). The company does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. SST also had a fixed deposit of INR196.55 million at FYE23 (FYE22: INR309.36 million) which is lien marked against the non-fund-based limits. The cash flow from operations turned negative at INR10.30 million in FY23 (FY22: INR57.74 million) owing to a decline in the EBITDA to INR41.53 million in FY23 (FY22: INR111.68 million). Consequently, the free cash flow too turned negative at INR11.51 million in FY23 (FY22: INR57.54 million). The net cash conversion cycle stood comfortable at four days in FY23 (FY22: nil), but elongated slightly due to an increase in the inventory days to four (nil). SST has no debt repayments in FY25 and FY26. Small Scale of Operations; Revenue Likely to Decline Significantly: SST's revenue declined to INR2,881.79 million in FY23 (FY22: INR5,178.76 million; FY21: INR4,207.06 million), due to a reduction in the number of shops to 69 from 141. In FY21 and FY22, the firm was the sole retailer for foreign and country liquor shops in Ujjain district. However, in FY23, the number of shops held with SST reduced to 69 on account of the merger of foreign and liquor retail outlets as per the government's policy, coupled with other retailers obtaining the license to operate in the same region. In 9MFY24, the firm booked a revenue of INR2,115.26 million. Hence, Ind-Ra expects the revenue to have declined year-on-year in FY24. Ind-Ra expects the revenue to further decline significantly year-on-year starting FY25 due to the inability of the partners to meet the timeline for the renewal of license to operate the retail shops in Ujjain. Modest EBITDA Margin: SST's EBITDA margin declined to a modest 1.44% (FY22: 2.16%; FY21: 2.23%) in FY23 with a return on capital employed of 5.6% (19.70%; 54.70%). The EBITDA margin is thin due to the trading nature of operations and high license fees. The major expense i.e. license fees accounts for 60%-70% of the net sales. In FY21, FY22 and FY23, SST paid INR2,866.17 million, INR3,574.94 million and INR1,940.60 million, respectively, towards license fees. In 9MFY24, the entity booked an EBITDA of INR45.78 million (FY23: INR50.09 million; FY22: INR111.68 million; FY21: INR93.89 million) with an operating EBITDA margin of 2.16%. In FY24, Ind-Ra expects the EBITDA margin to have remained in line with that of 9MFY24; however, the margin is likely to decline from FY25 due to a lack of sustainability in operating profits. Expected Closure of Operations due to Regulatory Changes: SST was not able to renew license for FY24-FY25 which indicates a discontinuation of its business. The liquor industry is highly regulated which impacts SST's pricing flexibility. Each state government has its own sales and duty structures; hence, any significant policy change will affect the whole industry. Also, running a liquor shop is a tender-driven business, leading to pressure on profitability and uncertainty over revenue visibility in case of non-renewal of licenses. Geographical Concentration Risk: SST's operations are concentrated in a single district i.e. Ujjain in Madhya Pradesh. Hence, the entity is susceptible to any change in the local demand-supply along with the geo-political conditions. Moreover, being a partnership nature of constitution, SST is susceptible to the risks associated with the withdrawal or transfer of capital by the partners which may deteriorate the entity's capital structure. Comfortable Credit Metrics: SST's credit metrics were comfortable in FY23 with a gross interest coverage (operating EBITDAR/gross interest expense + rents) of 3.82x (FY22: 3.04x) and a net leverage (adjusted net debt/operating EBITDAR) of 3.17x (negative 1.72x). The interest coverage improved year-on-year owing to a decline in the interest expense to INR1.44 million in FY23 (FY22: INR2.16 million) and the net leverage deteriorated due to a decline in the EBITDA. The firm does not have any outstanding long-term debt repayment obligation, except for an outstanding bank guarantee of INR40 million. Ind-Ra expects the credit metrics to have declined in FY24 owning to a likely decline in the operating EBITDA. Liquidity Stretched: The cash flow from operations turned negative at INR10.30 million in FY23 (FY22: INR57.74 million) owing to a decline in the EBITDA to INR41.53 million (INR111.68 million). Consequently, the free cash flow too turned negative at INR11.51 million in FY23 (FY22: INR57.54 million). The net cash conversion cycle stood comfortable at four days in FY23 (FY22: nil), but elongated slightly due to an increase in the inventory days to four (nil). SST has no long-term debt repayments in FY25 and FY26. Rating Sensitivities Negative: Inability to renew license leading to a substantial decline in the scale of operations or any adverse impact of the change in regulation could lead to a negative rating action. Positive: An ability to renew license, along with maintaining the scale of operations while maintaining comfortable credit metrics and an improvement in the liquidity position, all on a sustained basis could lead to a positive rating action. About the Company SST, a Ujjain-Madhya Pradesh based partnership firm was established in June 2020. The firm is engaged in the business of retailing of liquor. SAR SENAPATI: CARE Keeps D Debt Rating in Not Cooperating Category ------------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Sar Senapati Santaji Ghorpade Sugarfactory Limited (SSSGSL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 265.97 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Rationale and key rating drivers CARE Ratings Ltd. had, vide its press release dated March 17, 2023, placed the rating(s) of SSSGSL under the 'issuer non-cooperating' category as SSSGSL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. SSSGSL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated January 31, 2024, February 10, 2024, February 20, 2024. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Incorporated on February 19, 2011, SSSGSL is promoted by Mr. Hasanrao Mushrif, chief promoter, along with Mr. Sajid Hasan Mushrif, Managing Director (MD). The company is engaged in manufacturing of sugar & related products. The manufacturing facility is located at Kolhapur with crushing capacity of 4,800 tonnes of cane crushed per day (TCD), 30 Kilo Litres per Day (KLPD) distillery and bagasse fired co-generation unit of 22 mega-watts (MW). SHARDA TIMBERS: ICRA Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------ ICRA has kept the Long-Term and Short-term rating for the Bank facilities of Sharda Timbers (ST) in the 'Issuer Not Cooperating' category. The rating are denoted as "[ICRA]D;ISSUER NOT COOPERATING/[ICRA]D;ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Short Term- 0.15 [ICRA]D; ISSUER NOT COOPERATING; Unallocated Rating Continues to remain under 'Issuer Not Cooperating' Category Short-term 19.00 [ICRA]D; ISSUER NOT COOPERATING; Non-fund based Rating continues to remain under Others 'Issuer Not Cooperating' Category Long-term– 5.85 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category As part of its process and in accordance with its rating agreement with ST, ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite multiple requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information and in line with the aforesaid policy of ICRA, the rating has been continued to the "Issuer Not Cooperating" category. The rating is based on the best available information. Sharda Timbers (ST) is a proprietorship entity owned by Mr. Raj Kumar Bansal, is engaged in the timber trading business. It has its sales offices located in Nangloi (Delhi) and branch office at Gandhidham (Gujarat). The company procures timber mainly from Malaysia, Singapore, and New Zealand. The variety of timber imported comprises mainly 'Meranti', 'pine', and 'arau' which are mainly used in furniture making and light construction work. The imported timber logs after reaching Kandla port are transported to ATPL's factory in Gandhidham (Gujarat) located at 17 Kms away from the port. At the factory, the logs are cleaned and sawed to make clean squared timber blocks as well as different shapes of moulding and beading as per customers' requirements and specifications. All the sawn timber produced at Gandhidham (Gujarat) is sold locally to traders and builder located mainly in Punjab, Haryana, Uttar Pradesh, Gujarat, and Maharashtra. The nature of the work is low value additive, and the company faces high competition from numerous other players operating in the industry, which results in modest profitability for the company. However, robust demand potential on the face of real estate development. SICAL IRON: ICRA Keeps D Debt Ratings in Not Cooperating Category ----------------------------------------------------------------- ICRA has kept the Long-Term and Short-Term ratings of Sical Iron ore Terminals Limited (SIOTL) in the 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]D; ISSUER NOT COOPERATING/[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term- 40.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category Long-term- 500.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Term Loan 'Issuer Not Cooperating' Category Long-term 60.00 [ICRA]D; ISSUER NOT COOPERATING; Non-fund based Rating continues to remain under Others 'Issuer Not Cooperating' Category Long Term- (175.00) [ICRA]D; ISSUER NOT COOPERATING; Interchangeable Rating Continues to remain under 'Issuer Not Cooperating' Category Short Term- (175.00) [ICRA]D; ISSUER NOT COOPERATING; Interchangeable Rating Continues to remain under 'Issuer Not Cooperating' Category As part of its process and in accordance with its rating agreement with SIOTL, ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite multiple requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information and in line with the aforesaid policy of ICRA, the rating has been continued to the "Issuer Not Cooperating" category. The rating is based on the best available information. SIOTL was incorporated as a special purpose vehicle in September 2006 by the consortium of SLL and L&T Infrastructure Development Projects Limited (L&T IDPL). A concession agreement (CA) was signed between SIOTL and Kamarajar Port Limited (KPL, erstwhile Ennore Port Limited) on September 23, 2006, to implement an iron ore terminal at Ennore Port, Tamil Nadu on a build-operate-transfer (BOT) basis for a total period of 30 years (including the terminal construction period). The project was planned towards setting up an iron ore terminal of capacity 6 MMTPA in Phase I to reach 12 MMPTA in phase II. At present, SLL holds 63% in the JV, while MMTC Limited and L&T IDPL hold 26% and 11%, respectively. Despite completion, the operations did not commence due to the Supreme Court's ban on iron ore mining operations in Karnataka in 2011. Post this, SIOTL sought approval from the Ministry of Shipping for conversion into a coal handling terminal. Subsequently, SIOTL received the approval from the Ministry of Shipping. The company received the letter of award from KPL in July 2016 for conversion of terminal to handle coal with a capacity of 12 MTPA. The terminal received the final environmental clearance and at present the project is only ~80% complete and currently on hold due to lack of funding. Sical Logistics Limited has an investment amounting to INR82.90 Crore and has an outstanding loan amounting to INR851.07 Crore due from SIOTL. SIDDHARTHA INNOPAK: Ind-Ra Keeps BB- Rating in Non-Cooperating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Siddhartha Innopack Industries Private Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND BB-/ Stable (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR150 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND BB-/Stable (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR104.85 mil. Term loan due on June 30, 2026 maintained in non-cooperating category with IND BB-/Stable (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information Detailed Rationale of the Rating Action The ratings are maintained in the non-cooperating category in accordance with Ind-Ra's policy of Issuer Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with Siddhartha Innopack Industries Private Limited while reviewing the rating. Ind-Ra had consistently followed up with Siddhartha Innopack Industries Private Limited over emails, apart from phone calls. Limitations regarding Information Availability Ind-Ra has reviewed the credit ratings of Siddhartha Innopack Industries Private Limited on the basis of best available information and is unable to provide a forward-looking credit view. Hence, the current outstanding rating might not reflect Siddhartha Innopack Industries Private Limited's credit strength. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption / distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. About the Company Incorporated in 2011, SIIPL manufactures biaxially-oriented polypropylene bags, polypropylene woven bags and fabric bags. Their factory with an installed capacity of around 200,000 bags/day is located in Veeravalli, Andhra Pradesh. SIDHARTH CONSTRUCTION: CARE Keeps D Ratings in Not Cooperating -------------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of Sidharth Construction and Trading Private Limited (SCTPL) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 2.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 7.50 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Rationale and key rating drivers CARE Ratings Ltd. had, vide its press release dated February 28, 2023, placed the rating(s) of SCTPL under the 'issuer non-cooperating' category as SCTPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. SCTPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated January 14, 2024, January 24, 2024, February 3, 2024. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Sidharth Construction & Trading Private Limited (SCTPL) was incorporated in April 1982. Since its inception, the company has been engaged in earth work related construction and other civil work in the segment like roads, bridges and railway projects. SCTPL is also empanelled as a super class contractor under the chief engineer (roads), Odisha and also registered with the PWD Odisha for execution of various road construction projects. Mr. Bharat Chandra Rout (Managing Director) has more than four decades of experience in civil construction industry, looks after the day to day operations of the company. He is supported by other directors who are also having long experience in this industry. SIVARAM & CO: Ind-Ra Affirms BB+ Bank Rating, Outlook Stable ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has affirmed Sri Sivaram & Co's (SSAC) bank facilities as follows: -- INR90 mil. Fund-based working capital limit affirmed with IND BB+/Stable/IND A4+ rating; -- INR262.50 mil. Non-fund-based working capital limit affirmed with IND A4+ rating; and -- INR25.06 mil. (reduced from INR26.70 mil.) Term loan due on March 2027 affirmed with IND BB+/Stable rating. Detailed Rationale of the Rating Action The ratings reflect SSAC's stretched liquidity, medium scale of operations, high customer & geographical concentration, healthy EBITDA margin and robust credit metrics. Detailed Description of Key Rating Drivers Liquidity – Stretched: SSAC's cash flow from operations turned negative INR41.79 million (FY22: INR88.67 million) due to the increased working capital requirements led by the capex undertaken by the company. Consequently, the free cash flow turned negative INR64.96 million in FY23 (FY22: INR80.11 million). The cash and cash equivalents also fell and stood low at INR8.9 million at FYE23 (FYE22: INR42.28 million). SSAC does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. Continued Medium Scale of Operations: SSAC's revenue rose to INR1,682.76 million in FY23 (FY22: INR1,206.14 million) due to the execution of a larger number of orders. According to the key financials shared by the company, the revenue was INR1,747 million in FY24. Ind-Ra expects the revenue to slightly improve in the medium term account of an order book of INR1,927 million, to be executed in FY25. High Customer & Geographical Concentration: SSAC operates only in Tamil Nadu. Moreover, around 50% of the revenue is derived from the top three customers. Healthy EBITDA Margin: SSAC have healthy EBITDA margin. The margins dell to 6.10% in FY23 (FY22: 7.38%) because of an increase in the cost of raw materials. The main raw materials are steel and cement. ROCE declined to 31% in FY23 (FY22: 35.5%). The EBITDA margin improved to 6.86% in FY24 due to a reduction in the raw material prices. Ind-Ra expects the EBITDA margin to remain at a similar level in the medium term due to similar level of operations. Robust Credit Metrics: SSAC's gross interest coverage (operating EBITDA/gross interest expenses) increased to 9.48x in FY23 (FY22: 5.78x), because of a reduction in the finance cost to INR10.83 million (INR15.40 million). However the net leverage (adjusted net debt/operating EBITDAR) deteriorated to 1.13x in FY23 (FY22: 0.50x), because of an increase in the credit facility utilization at year end to INR98.55 million (INR39.04 million). In FY24, the interest coverage deteriorated to 8.13x due to an increase in finance cost to INR14.64 million whereas the net financial leverage improved to 0.94x due to a reduction in the utilization of credit facility to INR88.55 million. Ind-Ra expects the credit metrics to remain healthy in the medium term, supported by healthy EBITDA and comfortable incremental borrowings. Liquidity Stretched: SSAC's average month-end utilization of the fund-based limits was 68% and that of non-fund-based limit was 41.59% during the 12 months ended March 2024. The company has scheduled debt repayment obligations of INR16.5 million and INR3.9 million in FY25 and FY26, respectively. The net working capital cycle was negative 16 days in FY23 (FY22: negative 42 days). The net working capital cycle increased due to an increase in the inventory days to 21 (FY22: 1) and a reduction in the creditor days to 47 (57). Rating Sensitivities Negative: Any substantial decline in the scale of operations, leading to a deterioration in the credit metrics and the liquidity profile and the net leverage exceeding 5x, all on a sustained basis, could lead to a negative rating action. Positive: Any substantial increase in the scale of operations while maintaining the credit metrics and liquidity, all on a sustained basis, could lead to a positive rating action. About the Company Incorporated in 2005, SSAC is a partnership firm. The company is in civil construction, mainly canal earthwork excavation and construction of highways for the Tamil Nadu government. It is promoted by T.S. Chidambaram and T.S. Shivakumar. SOND KNIT: Ind-Ra Keeps B+ Rating in Non-Cooperating ---------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Sond Knit Garments' instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND B+/Stable (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating action is: -- INR100 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND B+/Stable (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information Detailed Rationale of the Rating Action The ratings are maintained in the non-cooperating category in accordance with Ind-Ra's policy of Issuer Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with Sond Knit Garments while reviewing the rating. Ind-Ra had consistently followed up with Sond Knit Garments over emails, apart from phone calls. Limitations regarding Information Availability Ind-Ra has reviewed the credit ratings of Sond Knit Garments on the basis of best available information and is unable to provide a forward-looking credit view. Hence, the current outstanding rating might not reflect Sond Knit Garments' credit strength. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption / distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. About the Company SKG is a partnership firm formed in 2006; it manufactures hosiery and readymade garments and exports them to the US, the Middle East, Canada and Europe. SOWIL LIMITED: Ind-Ra Keeps BB Rating in Non-Cooperating -------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Sowil Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND BB/Stable (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR20 mil. Fund Based Working Capital Limit maintained in non- cooperating category with IND BB/Stable (ISSUER NOT COOPERATING) rating; -- INR50 mil. Non-Fund Based Working Capital Limit maintained in non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR10.47 mil. Term loan due on April 30, 2018 maintained in non-cooperating category with IND BB/Stable (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information Detailed Rationale of the Rating Action The ratings are maintained in the non-cooperating category in accordance with Ind-Ra's policy of Issuer Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with Sowil Limited while reviewing the rating. Ind-Ra had consistently followed up with Sowil Limited over emails, apart from phone calls. Limitations regarding Information Availability Ind-Ra has reviewed the credit ratings of Sowil Limited on the basis of best available information and is unable to provide a forward-looking credit view. Hence, the current outstanding rating might not reflect Sowil Limited's credit strength. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption / distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. About the Company Incorporated in 1996, Sowil was formerly known as Sir Owen Williams Investment Ltd. It has a corporate office in Mumbai. The company provides consultancy services for all types of highway development works, railway works, bridges, structures, and tunneling. SRUSTI INFRADEVELOPERS: CRISIL Keeps B+ Rating in Not Cooperating ----------------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Srusti Infradevelopers (India) Private Limited (SIPL) continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term 20 CRISIL B+/Stable (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with SIPL 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 SIPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SIPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SIPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. Incorporated in 2010 by Mr R. Shyam Sunder Rao, Mr G. Sharath Kumar Reddy, Mr G. Jagpal Reddy, Mrs R. Vimala Devi, Mr G. Venkatesh Reddy, Mr J. Rajasekhar Rao, Mrs J. Varalaxmi and Mrs G. Swapna, Srusti Infradevelopers (India) Private Limited (SIPL) is involved in developing real estate projects. The company has undertaken one real estate project consisting of 170 residential apartment blocks in Kondapur, Hyderabad. The company is based out of Kondapur, Hyderabad Telangana. STARWINGS PLASTIC: Ind-Ra Keeps B Rating in Non-Cooperating ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Starwings Plastic and Chemicals Private Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND B/Stable (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR40 mil. Fund Based Working Capital Limit maintained in non- cooperating category with IND B/Stable (ISSUER NOT COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating; and -- INR110 mil. Non-Fund Based Working Capital Limit maintained in non-cooperating category with IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information Detailed Rationale of the Rating Action The ratings are maintained in the non-cooperating category in accordance with Ind-Ra's policy of Issuer Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with Starwings Plastic and Chemicals Private Limited while reviewing the rating. Ind-Ra had consistently followed up with Starwings Plastic and Chemicals Private Limited over emails, apart from phone calls. Limitations regarding Information Availability Ind-Ra has reviewed the credit ratings of Starwings Plastic and Chemicals Private Limited on the basis of best available information and is unable to provide a forward-looking credit view. Hence, the current outstanding rating might not reflect Starwings Plastic and Chemicals Private Limited's credit strength. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption / distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. About the Company Set up in 2013, SPCPL is a trading company specializing in the import and distribution of plastics and chemicals and specialty additives. SPCPL imports raw materials from various countries and sells it in the domestic market. The company is currently concentrating on Maharashtra, Gujarat, Jharkhand and Madhya Pradesh. SUDARSHAN BEOPAR: Ind-Ra Keeps BB+ Rating in Non-Cooperating ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has maintained Sudarshan Beopar Company Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND BB+/Stable (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating action is: -- INR110 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND BB+/Stable (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information Detailed Rationale of the Rating Action The ratings are maintained in the non-cooperating category in accordance with Ind-Ra's policy of Issuer Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with Sudarshan Beopar Company Limited while reviewing the rating. Ind-Ra had consistently followed up with Sudarshan Beopar Company Limited over emails, apart from phone calls. Limitations regarding Information Availability Ind-Ra has reviewed the credit ratings of Sudarshan Beopar Company Limited on the basis of best available information and is unable to provide a forward-looking credit view. Hence, the current outstanding rating might not reflect Sudarshan Beopar Company Limited's credit strength. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption / distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. About the Company Incorporated in 1979, SBCL manufactures and sells wheat products. The company's registered office is situated in Kolkata, West Bengal. SUPREME INFRASTRUCTURE: NCLT Admits Srei Infra's Insolvency Plea ---------------------------------------------------------------- The Economic Times reports that the National Company Law Tribunal (NCLT) has admitted SREI Infrastructure Finance's petition to initiate a corporate insolvency resolution process (CIRP) against Supreme Infrastructure BOT after it defaulted on repayment of loan. ET relates that SREI Infrastructure Finance had granted a term loan of INR150 crore to Supreme Infrastructure BOT for a period of five years. The loan was intended for use in infrastructure projects. Supreme Infrastructure BOT Private Limited, which is a part of Supreme Infrastructure Group (SIG), specializes in undertaking infrastructure projects on a BOT (Build, Operate and Transfer) basis. TARA SYNTEX: Ind-Ra Keeps B+ Rating in Non-Cooperating ------------------------------------------------------ India Ratings and Research (Ind-Ra) has maintained Tara Syntex Private Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND B+/Stable (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating action is as follows: -- INR50 mil. Fund Based Working Capital Limit maintained in non- cooperating category with IND B+/Stable (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information Detailed Rationale of the Rating Action The ratings are maintained in the non-cooperating category in accordance with Ind-Ra's policy of Issuer Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with Tara Syntex Private Limited while reviewing the rating. Ind-Ra had consistently followed up with Tara Syntex Private Limited over emails, apart from phone calls. Limitations regarding Information Availability Ind-Ra has reviewed the credit ratings of Tara Syntex Private Limited on the basis of best available information and is unable to provide a forward-looking credit view. Hence, the current outstanding rating might not reflect Tara Syntex Private Limited's credit strength. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption/distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. About the Company Incorporated in 1986, Surat-based TSPL manufactures ethnic apparels for women. The company has branches in New Delhi, Gujarat, Ambala, Amritsar, and Ludhiana. TECHNO TRAK: Ind-Ra Keeps BB Rating in Non-Cooperating ------------------------------------------------------ India Ratings and Research (Ind-Ra) has maintained Techno Trak Engineers' instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND BB/Stable (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR50 mil. Fund Based Working Capital Limit maintained in non- cooperating category with IND BB/Stable (ISSUER NOT COOPERATING) rating; -- INR8.3 mil. Non-Fund Based Working Capital Limit maintained in non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR5.96 mil. Term Loan due on March 31, 2023 maintained in non-cooperating category with IND BB/Stable (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information Detailed Rationale of the Rating Action The ratings are maintained in the non-cooperating category in accordance with Ind-Ra's policy of Issuer Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with Techno Trak Engineers while reviewing the rating. Ind-Ra had consistently followed up with Techno Trak Engineers over emails, apart from phone calls. Limitations regarding Information Availability Ind-Ra has reviewed the credit ratings of Techno Trak Engineers on the basis of best available information and is unable to provide a forward-looking credit view. Hence, the current outstanding rating might not reflect Techno Trak Engineers' credit strength. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption / distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. About the Company TTE is a Maharashtra-based partnership concern, established in 1986. It manufactures couplings and pup joints that are mainly used in the petroleum industry. VAISHNODEVI OILSEEDS: Ind-Ra Keeps BB Rating in Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Vaishnodevi Oilseeds Processing Industries' instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND BB/Stable (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR140 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND BB/Stable (ISSUER NOT COOPERATING) rating; and -- INR6 mil. Term loan due on March 31, 2021 maintained in non- cooperating category with IND BB/Stable (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information Detailed Rationale of the Rating Action The ratings are maintained in the non-cooperating category in accordance with Ind-Ra's policy of Issuer Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with Vaishnodevi Oilseeds Processing Industries while reviewing the rating. Ind-Ra had consistently followed up with Vaishnodevi Oilseeds Processing Industries over emails, apart from phone calls. Limitations regarding Information Availability Ind-Ra has reviewed the credit ratings of Vaishnodevi Oilseeds Processing Industries on the basis of best available information and is unable to provide a forward-looking credit view. Hence, the current outstanding rating might not reflect Vaishnodevi Oilseeds Processing Industries' credit strength. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption / distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. About the Company Formed in 2006, Vaishnodevi Oil Seeds Processing Industries is a partnership firm engaged in the extraction and trading of mustard oil and oil cake. VAISHNODEVI REFOILS: Ind-Ra Keeps BB+ Rating in Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Vaishnodevi Refoils & Solvex's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND BB+/Stable (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR300 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND BB+/Stable (ISSUER NOT COOPERATING) rating; and -- INR8.8 mil. Term loan due on December 31, 2020 maintained in non-cooperating category with IND BB+/Stable(ISSUER NOT COOPERATING). Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information Detailed Rationale of the Rating Action The ratings are maintained in the non-cooperating category in accordance with Ind-Ra's policy of Issuer Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with Vaishnodevi Refoils & Solvex while reviewing the rating. Ind-Ra had consistently followed up with Vaishnodevi Refoils & Solvex over emails, apart from phone calls. Limitations regarding Information Availability Ind-Ra has reviewed the credit ratings of Vaishnodevi Refoils & Solvex on the basis of best available information and is unable to provide a forward-looking credit view. Hence, the current outstanding rating might not reflect Vaishnodevi Refoils & Solvex's credit strength. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption / distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. About the Company Formed in 2008, Vaishnodevi Refoils is a partnership firm engaged in the extraction of mustard oil and de-oiled cake and the refining of crude oil into soya bean oil, rapeseed oil and others. VASUPRADA PLANTATION: Ind-Ra Corrects Dec. 29, 2023 Rating Release ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) rectifies Shri Vasuprada Plantation Limited (erstwhile Joonktollee Tea & Industries Limited)'s (SVPL) rating published on December 29, 2023 to correctly state the scheduled debt repayments under the liquidity section. The amended version is as follows: India Ratings and Research (Ind-Ra) has affirmed Shri Vasuprada Plantation Limited (erstwhile Joonktollee Tea & Industries Limited)'s (SVPL) debt instruments' ratings as follows: -- INR500 mil. Non-convertible debentures NCDs# affirmed with IND B+/Stable rating; and -- INR250 mil. Preference shares 6% due on 20 years* affirmed with IND B+/Stable rating. *From the date of allotment and subject to early repayment by the company # Details in Annexure ANALYTICAL APPROACH: Ind-Ra has taken a consolidated view of SVPL and its subsidiaries - Keshava Plantations Pvt Ltd (100% stake), Pranav Infradev Company Pvt. Ltd. (100% stake) and The Cochin Malabar Estates & Industries Ltd. (a wholly-owned subsidiary of Pranav Infradev Company), together referred to as the group hereafter, while assigning the ratings. This is on account of the strong operational and strategic linkages among them. However, Ind-Ra continues to factor in the possibility of financial support to be provided by other Bangur group companies. The promoters have informed the agency that the promoters/other group entities will provide financial support, if required. Key Rating Drivers The ratings reflect the group's medium scale of operations. On a consolidated basis, the revenue fell to INR1,140 million in FY23 (FY22: INR1,224 million) due to a decline in tea production on the back of adverse climate conditions, despite an increase in realization to INR194 per kg (INR167 per kg). During 1HFY24, the group achieved revenue of INR562.49 million. On a standalone basis, SVPL's revenue was INR508.58 million in 1HFY24 (FY23: INR1,022.32 million, FY22: INR1,120.42 million). Ind-Ra expects the revenue to increase in 2HFY24 owing to beginning of sale of orthodox tea. The ratings also factor in the group's modest EBITDA margin of 2.31% in FY23 (FY22: 1.31%) due to an increase in other income. During FY23, SVPL liquidated 47.10% stake in its wholly-owned subsidiary M/s. Pranav Infradev Co. Pvt. Ltd. for INR147.29 million. The return on capital employed was negative 3% in FY23 (FY22: negative 3%). Ind-Ra expects the EBITDA margin to improve marginally due to the introduction of high-margin orthodox tea. On a standalone basis, SVPL's EBITDA margin was modest at 1.59% in FY23 (FY21: 1.1%) with a return on capital employed of negative 3% (negative 3%). The ratings also reflect the group's modest credit metrics as indicated by interest coverage (operating EBITDA/gross interest expenses) of 0.32x in FY23 (FY22: 0.15x) and net financial leverage (total adjusted net debt/operating EBITDAR) of 19.32x (46.37x). The improvement in the credit metrics was attributed to an increase in EBITDA to INR26.32 million in FY23 (FY22: INR16.09 million and a decline in the total debt to INR545.13 million (INR751.08 million). Ind-Ra expects the group's credit metrics to remain at similar levels in FY24 in the absence of any debt-led capex. On a standalone basis, the credit metrics were modest with interest coverage of 0.23x in FY23 (FY22: 0.13x) and net financial leverage of 27.89x (51.0x). Liquidity Indicator - Poor: The group's net working capital cycle was modest and elongated to 359 days in FY23 (FY22: 233 days) because of an increase in the inventory holding period to 366 days (234 days). On a standalone basis, the net working capital cycle stretched to 339 days in FY23 (FY22: 226 days). The company's average utilization of the fund-based limits was 74.7% during the 12 months ended October 2023. The group's cash flow from operations turned negative to INR126.98 million in FY23 (FY22: INR14.45 million) because of unfavorable changes in working capital. Consequently, the group's free cash flow remained negative and deteriorated further to INR180.41 million in FY23 (FY22: negative INR55.20 million). The group's cash and cash equivalents stood at INR36.68 million at FYE23 (FYE22: INR4.97 million). SVPL has scheduled repayments of INR26.7 million and INR18.9 million in FY24 and FY25, respectively, which will be met through infusion of funds through group companies in the form of inter-company deposits. The ratings are further constrained by agro-climatic risks as tea and coffee production is dependent on climatic conditions. Additionally, the inherent cyclicality of the fixed-cost intensive tea industry, leads to variability in profitability and cash flows of bulk tea blenders. However, the ratings are supported by the promoters' more than two decades of experience in the tea and coffee business, as well as timely funding support from the promoters. Rating Sensitivities Positive: An improvement in the group's scale of operations, leading to an overall improvement in the credit metrics and liquidity, all on a sustained basis, will be positive for the ratings. Negative: A significant decline in the group's scale of operations or any weakening/delay in receipt of financial support from group companies resulting in any decline in the liquidity or the interest coverage, all on a sustained basis, will be negative for the ratings. Company Profile SVPL is engaged in plantation of tea, coffee and rubber. The company operates five tea estates, one coffee estate and one rubber estate in northern and southern parts of India. The company's registered office is located in Kolkata, West Bengal. SVPL is managed and promoted by the Bangur group. VENUS DENIM: Ind-Ra Hikes Bank Loan Rating to B-, Outlook Stable ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has upgraded Venus Denim's (VD) bank facilities' ratings to 'IND B-' from 'IND D'. The Outlook is Stable. The instrument-wise rating actions are: -- INR350 mil. Fund-based working capital limit upgraded with IND B-/Stable/IND A4 rating; -- INR29.96 mil. Non-fund-based working capital limit upgraded with IND A4 rating; -- INR318.30 mil. (reduced from INR438.80 mil.) Term loan due on April 2028 upgraded with IND B-/Stable rating; and -- INR260.64 mil. Proposed term loan assigned with IND B-/Stable rating. Detailed Rationale of the Rating Action The upgrade reflects timely repayment of debt obligations for three consecutive months. The ratings continue to be constrained by poor liquidity and the intense competition in the industry. The ratings are supported by comfortable credit metrics. Detailed Description of Key Rating Drivers Poor Liquidity: The average maximum utilization of the fund-based working capital limits was 99.82% over the 12 months ended April 2024. The cash flow from operations improved to INR599.67 million in FY23 (FY22: INR44.31 million, FY21: INR351.24 million) due to an increase in absolute EBITDA and favorable changes in working capital. Consequently, the free cash flow turned positive at INR451.39 million in FY23 (FY22: negative INR430.75 million, FY21: INR393.83 million) despite the capex of INR148.28 million incurred for the installation of a solar plant and maintenance purposes. Ind-Ra expects the cash flow from operations to have decreased in FY24 due to unfavorable changes in working capital, but the agency believes it would gradually improve in the near-to-medium term due to higher profitability. Highly Fragmented and Competitive Industry; Volatility in Input Prices: VS operates in a highly competitive and fragmented industry, characterized by a large number of organized and unorganized players due to low entry barriers. The company's ability to maintain a competitive edge and constantly innovate and evolve with precise marketing strategies would remain crucial to tackle the stiff competition. The profitability depends largely on the prices of cotton and cotton yarn, which are governed by various factors such as area under cultivation, monsoon, international demand-supply situation, among others. During the past years, the market has seen volatility in cotton yarn production due to the unstable cotton prices and inconsistent cotton yarn export policy. However, the firm’s strong, longstanding relationships with its suppliers ensures smooth supply of raw materials at all times. Large Scale of Operations; Revenue Declined in FY24: VD's revenue had increased to INR9,860.19 million in FY23 (FY22: INR8,185.40 million; FY21: INR3,855.84 million) owing to an increase in sales volumes. However, in FY24, company's revenue fell to INR8,436.20 million because of a decline in sales realizations. Ind-Ra expects the revenue to increase marginally in FY25 owing to a likely improvement in sales volumes. FY24 figures are provisional in nature. Modest EBITDA Margin; Improved Profitability during FY23-FY24: The EBITDA margin increased slightly to 3.61% in FY23 (FY22: 3.25%, FY21: 7.43%) owing to a decrease in operating costs. The firm's ROCE stood at 10.9% in FY23 (FY22: 8.0%, FY21: 9.5%). VD's EBITDA margin improved further to 3.74% in FY24 due to a continued decline in operating costs. Furthermore, Ind-Ra expects the EBITDA margin to continue to improve in the near-to-medium term on account of a likely reduction in power cost, backed by the firm's investments in solar and windmill plants. Comfortable Credit Metrics: VD's credit metrics improved in FY24 because of a decline in the total debt to INR609.70 million (FY23: INR775.37 million, FY22: INR1,156.71 million) and the consequent decrease in interest expenses. The interest coverage (operating EBITDA/gross interest expense) was 5.50x in FY24 (FY23: 4.62x; FY22:4.20x) and net leverage (total adjusted net debt/operating EBITDAR) was 1.92x (2.03x, 4.18x). Ind-Ra expects the net leverage to deteriorate slightly in the near term on account of planned debt-led capex; however, the net leverage would improve in the medium term owing to a likely improvement in the absolute EBITDA and timely repayment of debt. Liquidity Poor: The average maximum utilization of the fund-based working capital limits was 99.82% over the 12 months ended April 2024. The cash flow from operations improved to INR599.67million in FY23 (FY22: INR44.31 million, FY21: INR351.24 million) due to the increase in absolute EBITDA and favorable changes in working capital. As a result, the free cash flow turned positive at INR451.39 million in FY23 (FY22: negative INR430.75 million, FY21: INR393.83 million) despite capex of INR148.28 million incurred during the year for the installation of the solar Plant and maintenance purposes. Ind-Ra expects the cash flow from operations to have decreased in FY24 due to unfavorable change in working capital; however, the cash flow is likely to gradually improve in the near-to-medium term on account of improvement in profitability. VD's cash and cash equivalents stood at INR50.52 million at FYE23 (FYE22: INR45.34 million, FYE21: INR295.99 million). The net working capital cycle reduced to two days in FY23 (FY22: 19 days, FY21: 34 days) due to a fall in the receivable days to 44 days (62 days, 115 days). VD repaid debt obligations of INR155.19 million in FY24, and it has repayment obligations of INR117.86 million and INR118.69 million in FY25 and FY26, respectively. VD does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. Rating Sensitivities Negative: Continued substantial deterioration in liquidity could lead to a negative rating action. Positive: Improvement in the liquidity while maintaining the scale of operations and operating profitability, on a sustained basis, could be positive for the rating. About the Company Incorporated in March 2015, VD is promoted by Balvantrai Agarwal and his family members. VD manufactures denim fabrics with a capacity of 30 million meters per annum, including 312 weaving looms. It also has two dyeing units with a total capacity of 45 million meters per annum. The company is a part of the Kumar group, which has direct presence in weaving, dyeing and manufacturing of yarn in the textile value chain. VINAYAK MARINE: CARE Keeps B+ Debt Rating in Not Cooperating ------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Vinayak Marine Services Private Limited (VMSPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 11.51 CARE B+; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Rationale and key rating drivers CARE Ratings Ltd. had, vide its press release dated March 3, 2023, placed the rating(s) of VMSPL under the 'issuer non-cooperating' category as VMSPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. VMSPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated January 17, 2024, January 27, 2024, February 6, 2024. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Incorporated in 2006 by Mr. Ravi Kapoor and Mr. Shakti Kapoor, Vinayak, Marine Services Private Limited (VMS) is engaged in providing shipping services viz. offshore personnel transportation for those personnel engaged in offshore oil & gas exploration activities. Moreover, the company is also engaged into bunker & marine spares supply, ship management & consultancy services, ship brokers & charterer services, ship sale & purchase services, men & material movement (MMM) and salvage & towage services. VISHAL SPINTEX: Ind-Ra Affirms BB Bank Rating, Outlook Stable ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has revised Outlook on Vishal Spintex's (VS) bank facilities to Stable from Negative while affirming the ratings at 'IND BB'. The instrument-wise rating actions are: -- INR310 mil. Fund-based working capital limit affirmed; Outlook revised to Stable from Negative with IND BB/Stable/ IND A4+ rating; -- INR36.70 mil. Non-fund-based working capital limit affirmed with IND A4+ rating; and -- INR343.60 mil. Term loan due on May 2030 affirmed; Outlook revised to Stable from Negative IND BB/Stable rating. Detailed Rationale of the Rating Action The affirmation and Outlook revision reflects an improvement in the liquidity position of VS's group entity Venus Denim ('IND B-'/Stable) from which VS derives the majority of its revenue. Detailed Description of Key Rating Drivers Modest Credit Metrics; Likely to Continue to Deteriorate Further in FY25: The interest coverage (operating EBITDA/gross interest expense) continued to deteriorate to 2.30x in FY24 (FY23: 2.77x; FY22: 4.35x) and net leverage (total adjusted net debt/operating EBITDAR) to 3.51x (3.29, 2.48x) owing to an increase in debt to fund capex, and the consequent increase in interest expense. However, this was partially offset by an increase in the absolute EBITDA to INR398.90 million in FY24 (FY23: INR285.87 million; FY22: INR228.55 million). Ind-Ra expects the credit metrics to deteriorate further in FY25 due to its planned debt-led capex but improve in the medium term on account of a likely increase in profitability and timely repayment of term debt. FY24 financials are provisional. Stretched Liquidity: The average maximum utilization of the fund-based working capital limits was 93.66% over the 12 months ended March 2024. The cash flow from operations declined to INR28.06 million in FY23 (FY22: INR168.94 million, FY21: INR248.95 million, FY20: INR99.76 million) due to unfavorable changes in working capital. Furthermore, the free cash flow turned negative to INR527.27 million in FY23 (FY22: INR52.49 million, FY21: INR94.15 million) as the company incurred capex of INR555.33 million for expanding spindle capacity and installing a windmill. Ind-Ra expects the cash flow from operations to have turned negative in FY24 on account of unfavorable changes in working capital; although gradually improve in the medium term. Highly Fragmented and Competitive Industry; Margins Susceptible to Input Prices: VS operates in a highly competitive and fragmented industry characterized by a large number of organized and unorganized players due to low entry barriers. The company's ability to compete, and constantly innovate and evolve with precise marketing strategies would remain crucial to tackle the stiff competition. The profitability depends largely on the prices of cotton and cotton yarn, which are governed by various factors such as area under cultivation, monsoon, international demand-supply situation, among others. During the past years, the market has seen volatility in cotton yarn production due to unstable cotton prices and inconsistent cotton yarn export policy. However, the firm's strong, longstanding relationships with its suppliers ensures smooth supply of raw materials at all times. Continued Medium Scale of Operations; Revenue Growth to Continue in Near-to-Medium Term: During FY24, the revenue grew to INR4,664.20 million (FY23: INR4,456.23 million, FY22: INR4,192 million, FY21: INR1,966.91 million) on account of an increase in sales volume. In FY23, VS derived 89.16% of its revenue from sale of goods to related entities Venus Denims (79.70%) and Pinaz Texfab Pvt Ltd (9.46%). Ind-Ra expects the revenue to marginally increase in the near-to-medium term on account of a likely increase in sales volume due to capacity additions undertaken during FY23. Modest EBITDA Margin; Albeit Improving: The EBITDA margin continued to increase to 8.55% (FY23: 6.42%, FY22: 5.45%, FY21: 8.73%) owing to a reduction in power cost as the firm installed wind power plants for captive consumption. Ind-Ra expects the EBITDA margin to remain at FY24 levels in the near-to-medium term; although, remain susceptible to volatility in raw material prices. Successful Completion of Debt-led Capex: In FY23, VS incurred capex of INR555.33 million for increasing its spindle capacity by 20,000 spindles to 40,000 spindles and installing a 2.1MW windmill. Of the total capex, INR439.125 million was funded through term loans and the remaining through internal accruals. Furthermore, VS installed an additional 2.1MW windmill costing INR180 million, for which it had taken a term loan of INR100.875 million. It installed another 2.1MW windmill in FY24 and is installing a solar power plant in FY25. For this, it will incur capex of INR190 million, of which INR172.50 million will be funded from the new term loan (already sanctioned). Liquidity Stretched: VS’s cash and cash equivalents stood at INR45.42 million at FYE23 (FYE22: INR37.53 million, FYE21: INR9.90 million). The average maximum utilization of the fund-based working capital limits was 93.66% over the 12 months ended March 2024. The cash flow from operations declined to INR28.06 million in FY23 (FY22: INR168.94 million, FY21: INR248.95 million, FY20: INR99.76 million) due to unfavorable changes in working capital. Furthermore, the free cash flow turned negative to INR527.27 million in FY23 (FY22: INR52.49 million, FY21: INR94.15 million) as the company incurred capex of INR555.33 million for expanding spindle capacity and installing a windmill. Ind-Ra expects the cash flow from operation to turn negative in FY24 on account of unfavorable changes in working capital and gradually improve in the medium term. The net working capital cycle increased to 15 days in FY23 (FY22: 12 days, FY21: 42 days) due to a reduction in the receivable period to 36 days (61 days, 67 days). VS has repayment obligations of INR176.04 million and INR168.77 million in FY25 and FY26, respectively. VS does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. Rating Sensitivities Negative: Deterioration in the liquidity and credit metrics of the group companies, or deterioration in the firm's scale of operations or profitability or liquidity profile, all on a sustained basis, could be negative for the ratings. Positive: An improvement in the liquidity and credit metrics of all group companies, on a sustained basis, could be positive for the ratings. About the Company Incorporated in April 2014, Ahmedabad-based, VS is a partnership firm promoted by Balvantrai Agarwal and his family with equal profit-sharing ratio. The firm manufactures open and ring spun cotton yarn of various counts with an installed capacity of 40,000 spindles at its three manufacturing units located in Gujarat. VS is a part of Kumar Group. The group has a direct presence in weaving, dyeing and manufacturing of yarn in the textile value chain. VISHESH ENGINEERING: ICRA Moves D Debt Ratings to Not Cooperating ----------------------------------------------------------------- ICRA has moved the ratings for the bank facilities of Vishesh Engineering Company (VEC) to the Issuer Not-Cooperating category. The rating is denoted as [ICRA]D; ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term- 10.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating moved to the 'Issuer Not Cash Credit Cooperating' Category Long term- 4.50 [ICRA]D; ISSUER NOT COOPERATING; Non fund based Rating moved to the 'Issuer Not Others Cooperating' category As part of its process and in accordance with its rating agreement with VEC, ICRA has been trying to seek information from the entity to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information and in line with the aforesaid policy of ICRA, a rating view has been taken on the entity based on the best available information. Vishesh Engineering Company (VEC), established in 1986, is into preliminary seismic survey services such as land and transition zone surveys, shallow water services and acquisition of 2D and 3D data through the shot hole drilling process, primarily for oil exploration and production (E&P) companies, mostly ONGC. The firm is based in Guntur, Andhra Pradesh, and has three partners - Mrs. Jhansi Lakshmi, Mr. N. Ramachandra Raju and Ms B. Sowmya. The operations are currently managed by the CEO, Mr. B.V. Sivarama Raju, who has more than 30 years of experience in seismic services. VISHRAMBHAI GORASIA: Ind-Ra Keeps BB- Rating in Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Vishrambhai Gorasia Construction Private Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND BB-/ Stable (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating action is: -- INR79.8 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND BB-/Stable (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information Detailed Rationale of the Rating Action The ratings are maintained in the non-cooperating category in accordance with Ind-Ra's policy of Issuer Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with Vishrambhai Gorasia Construction Private Limited while reviewing the rating. Ind-Ra had consistently followed up with Vishrambhai Gorasia Construction Private Limited over emails, apart from phone calls. Limitations regarding Information Availability Ind-Ra has reviewed the credit ratings of Vishrambhai Gorasia Construction Private Limited on the basis of best available information and is unable to provide a forward-looking credit view. Hence, the current outstanding rating might not reflect Vishrambhai Gorasia Construction Private Limited's credit strength. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption/distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. About the Company Incorporated in 2008, Vishrambhai Gorasia Construction supplies readymade concrete and undertakes civil project works such as roads, buildings, dams, railways, and drainage and water supply lines. It has readymade concrete production facilities at four locations in Gujarat. The facilities have a combined capacity of 190.0 cubic meters per hour. It is a closely held private limited company founded by Mr. Vishram Karsan Gorasia. Y. ACHAMMA: Ind-Ra Keeps B Rating in Non-Cooperating ---------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Y. Achamma's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND B/Stable (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating action is: -- INR50 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND B/Stable (ISSUER NOT COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information Detailed Rationale of the Rating Action The ratings are maintained in the non-cooperating category in accordance with Ind-Ra's policy of Issuer Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with Y. Achamma while reviewing the rating. Ind-Ra had consistently followed up with Y. Achamma over emails, apart from phone calls. Limitations regarding Information Availability Ind-Ra has reviewed the credit ratings of Y. Achamma on the basis of best available information and is unable to provide a forward-looking credit view. Hence, the current outstanding rating might not reflect Y. Achamma's credit strength. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption / distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. About the Company Andhra Pradesh-based Y. Achamma commenced commercial operations from 2014. It is a civil engineer contractor that provides services to private bodies. It undertakes contracts for the construction of canals, veterinary clinics and others. YADU SUGAR: Ind-Ra Keeps D Rating in Non-Cooperating ---------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Yadu Sugar Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating action is: -- INR1.020 bil. Fund Based Working Capital Limit maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information Detailed Rationale of the Rating Action The ratings are maintained in the non-cooperating category in accordance with Ind-Ra's policy of Issuer Non-Cooperation. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with Yadu Sugar Limited while reviewing the rating. Ind-Ra had consistently followed up with Yadu Sugar Limited over emails, apart from phone calls.. Limitations regarding Information Availability Ind-Ra has reviewed the credit ratings of Yadu Sugar Limited on the basis of best available information and is unable to provide a forward-looking credit view. Hence, the current outstanding rating might not reflect Yadu Sugar Limited's credit strength. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption / distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. About the Company Incorporated in 1998, Yadu Sugar has a 500 tons of cane per day sugar mill and a 32MW co-generation plant in Sujanpur, Uttar Pradesh. ===================== N E W Z E A L A N D ===================== DWYER LAW: Court to Hear Wind-Up Petition on June 27 ---------------------------------------------------- A petition to wind up the operations of Dwyer Law Limited will be heard before the High Court at Auckland on June 27, 2024, at 10:45 a.m. The Commissioner of Inland Revenue filed the petition against the company on May 2, 2024. The Petitioner's solicitor is: Hosanna Tanielu Inland Revenue, Legal Services 5 Osterley Way Manukau City Auckland 2104 LANDWORK CIVIL: Creditors' Proofs of Debt Due on June 21 -------------------------------------------------------- Creditors of Landwork Civil Limited are required to file their proofs of debt by June 21, 2024, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 21, 2024. The company's liquidators are: Adam Botterill Damien Grant Waterstone Insolvency PO Box 352 Auckland 1140 PAMATA TRANSPORT: BDO Tauranga Appointed as Liquidator ------------------------------------------------------ Paul Thomas Manning and Thomas Lee Rodewald of BDO Tauranga on May 21, 2024, were appointed as liquidators of Pamata Transport Limited. The liquidators may be reached at: C/- BDO Tauranga Limited Level 1, The Hub 525 Cameron Road PO Box 15660 Tauranga 3144 SIMON LIMITED: Court to Hear Wind-Up Petition on June 11 -------------------------------------------------------- A petition to wind up the operations of Simon Limited will be heard before the High Court at Rotorua on June 11, 2024, at 10:00 a.m. The Commissioner of Inland Revenue filed the petition against the company on May 3, 2024. The Petitioner's solicitor is: Christina Anne Hunt Inland Revenue Legal Services 21 Home Straight PO Box 432 Hamilton YS GROUP: Creditors' Proofs of Debt Due on June 20 -------------------------------------------------- Creditors of YS Group Limited are required to file their proofs of debt by June 20, 2024, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 22, 2024. The company's liquidators are: Steven Khov Kieran Jones Khov Jones Limited PO Box 302261 North Harbour Auckland 0751 ================= S I N G A P O R E ================= BLOOMBERG TRADING: Creditors' Proofs of Debt Due on June 27 ----------------------------------------------------------- Creditors of Bloomberg Trading Services (Singapore) Pte. Ltd. are required to file their proofs of debt by June 27, 2024, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 20, 2024. The company's liquidators are: Muk Siew Peng Keoy Soo Earn 6 Shenton Way OUE Downtown 2, #33-00 Singapore 068809 BUEY TAHAN: First Creditors' Meeting Set for June 10 ---------------------------------------------------- A first meeting of the creditors in the proceedings of Buey Tahan Pte. Ltd. and Buey Tahan Catering Pte. Ltd. will be held on June 10, 2024, at 11:00 a.m. by way of video conference via Zoom (deemed venue: 50 Havelock Road, #02-767 Singapore 160050). The liquidators are: Lau Chin Huat Yeo Boon Keong c/o Technic Inter-Asia Pte Ltd 50 Havelock Road #02-767 Singapore 160050 LIPPO MALLS: Fitch Lowers LongTerm IDR to 'C' on Exchange Offer --------------------------------------------------------------- Fitch Ratings has downgraded Lippo Malls Indonesia Retail Trust's (LMIRT) Long-Term Issuer Default Rating (IDR) to 'C' from 'CC'. Fitch has also downgraded the rating on LMIRT's senior unsecured notes due 2024 and 2026 to 'C' from 'CC', with a Recovery Rating of 'RR4'. The notes are issued by LMIRT's wholly owned subsidiary, LMIRT Capital Pte. Ltd., and guaranteed by Perpetual (Asia) Limited in its capacity as trustee of LMIRT. The downgrade follows LMIRT's announcement that it will proceed with an exchange offer on its USD138.4 million unsecured notes due 19 June 2024, subject to the satisfaction of the conditions in the offering memorandum. Fitch believes the exchange offer constitutes a distressed debt exchange (DDE), as the transaction will lead to a material reduction in terms and, in its view, is being conducted to avoid a default. LMIRT said on 21 May 2024 it received valid tenders and will exchange USD40.8 million of the June 2024 notes (29.5% of outstanding face value) for USD23.8 million of cash consideration and the issuance of USD17.6 million of new notes, which will be due in February 2026. Fitch will downgrade LMIRT's IDR to 'Restricted Default' (RD) on completion of the DDE, and reassess the ratings in line with the post-restructuring capital structure. KEY RATING DRIVERS DDE Drives Downgrade: Fitch regards LMIRT's exchange offer as a DDE, as Fitch believes there is a material reduction in the original terms and that the transaction is conducted to avoid a traditional default, given the trust's untenable liquidity profile. DERIVATION SUMMARY LMIRT's Long-Term IDR of 'C' and the 'C' rating on its senior unsecured notes reflect the company's announced exchange offer on its outstanding unsecured notes due June 2024. Fitch believes the tender offer constitutes a DDE. KEY ASSUMPTIONS - Net property income of SGD123 million in 2024 and SGD130 million in 2025; - Capex of SGD34 million in 2024 and SGD13 million in 2025; - No dividend payout and perpetual coupon distribution in 2024 and 2025. RECOVERY ANALYSIS Fitch assume LMIRT will be liquidated in a bankruptcy rather than continue as a going concern, as Fitch believes creditors are likely to maximise recoveries by selling the investment properties. - Fitch calculates a liquidation value under a distressed scenario of SGD0.6 billion at end-March 2024. - Fitch uses stressed capitalisation values to arrive at the distressed valuation for LMIRT's investment properties. Fitch uses an 11% capitalisation rate as a reference, higher than the average of capitalisation rates from the most recent divestments and acquisitions of 10% in 2020, due to the portfolio's weaker performance since then, and challenging recovery prospects. This capitalisation rate is applied to Fitch's estimated net property income for the 12 months to end-March 2024 stemming from LMIRT's Hak Guna Bangunan and strata malls only, as Fitch believes there are higher execution risks to selling malls with agreement-based scheme land-titles. - The estimate also reflects its assessment of the value of trade receivables under a liquidation scenario, with a 75% advance rate. Fitch believes a 25% discount is sufficient to cover potential bad debt. These assumptions result in a recovery corresponding to a Recovery Rating of 'RR3' with a waterfall-generated recovery computation of 65% for the outstanding senior unsecured bonds. However, the Recovery Rating is capped at 'RR4', or 30%-50% estimated recoveries, as LMIRT derives its entire economic value from assets in Indonesia even though the trust is incorporated in Singapore. Under its Country-Specific Treatment of Recovery Ratings Criteria, Indonesia falls into Group D of creditor friendliness, and the Recovery Rating for instruments of issuers with assets in this group is subject to a soft cap at 'RR4'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade: - Fitch will reassess LMIRT's capital structure and cash flow prospects after the completion of the DDE to determine the Long-Term IDR and senior unsecured rating. Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade: - Fitch will downgrade LMIRT's Long-Term IDR to 'RD' when the DDE is completed, and then reassess the company's IDR based on the post-restructuring capital structure. LIQUIDITY AND DEBT STRUCTURE Bank Funding Insufficient: LMIRT had around SGD35.2 million of cash available for debt repayment as of 31 March 2024, compared with around SGD236.5 million debt due in 2024, comprising the USD138.4 million (SGD185.6 million equivalent) unsecured notes maturing in June 2024 and prepayments of SGD50.9 million related to its Singapore dollar secured bank loans. LMIRT has insufficient liquidity to repay the notes, with only a IDR1.5 trillion (SGD126.3 million) committed secured loan obtained in May 2024 and IDR230 billion (SGD19.4 million) remaining from the IDR2.5 trillion secured loan obtained in December 2023. Hence, Fitch believes the proposed exchange offer is critical to repay its US dollar-denominated medium-term notes due June 2024. ISSUER PROFILE LMIRT is a Singapore-listed real-estate investment trust with a portfolio of 22 shopping malls and seven retail spaces in Indonesia. The portfolio was valued at SGD1.6 billion as of end-March 2024. ESG CONSIDERATIONS The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Lippo Malls Indonesia Retail Trust LT IDR C Downgrade CC LMIRT Capital Pte. Ltd. senior unsecured LT C Downgrade RR4 CC LUXE FOOD: Creditors' Meeting Set for June 7 -------------------------------------------- Luxe Food Pte. Ltd., which is in provisional liquidation, will hold a meeting for its creditors on June 7, 2024, at 4:00 p.m. via electronic means. Agenda of the meeting includes: a. to present a Statement of the Company's affairs showing in respect of assets the method and manner in which the valuation of the assets was arrived at, together with a list of the creditors and the estimated amount of the claims; b. to consider the nomination of the Liquidators for the Company and on the appointment of Ong Shyue Wen and Saw Meng Tee as the Liquidators of the Company; c. to consider the appointment of a Committee of Inspection; and d. to discuss other business. Mr. Saw Meng Tee and Mr. Ong Shyue Wen of EA Consulting were appointed as provisional liquidators of the company on May 20, 2024. REGALRARE GEM: Court to Hear Wind-Up Petition on June 14 -------------------------------------------------------- A petition to wind up the operations of Regalrare Gem Museum Pte Ltd will be heard before the High Court of Singapore on June 14, 2024, at 10:00 a.m. Kingsmen Exhibits Pte Ltd filed the petition against the company on May 10, 2024. The Petitioner's solicitors are: TSMP Law Corporation 6 Battery Road Level 5 Singapore 049909 RIAU CAPITAL: Creditors' Meeting Set for June 7 ----------------------------------------------- Riau Capital Pte Ltd, which is in liquidation, will hold a meeting for its creditors on June 7, 2024, at 11:30 a.m. via Zoom. Agenda of the meeting includes: a. to update on the status of the liquidation; b. to appoint a Committee of Inspection if deemed necessary; c. to appoint solicitors to assist the Liquidators' duties or to bring or defend any action or legal proceedings in the name and on behalf of the Company; d. to resolve that the books, accounts and documents of the Company be destroyed after 5 years from the date of dissolution of the Company; and e. Any other business. The liquidators may be reached at: Mr. Don M Ho Mr. David Ho c/o DHA+ pac 63 Market Street #05-01A Bank of Singapore Centre Singapore 048942 ============= V I E T N A M ============= PETROVIETNAM POWER: Fitch Affirms BB+ LongTerm IDR, Outlook Stable ------------------------------------------------------------------ Fitch Ratings has affirmed PetroVietnam Power Corporation - Joint Stock Company's (PV Power) Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB+' with a Stable Outlook. PV Power's ratings reflect its Standalone Credit Profile (SCP) of 'bb+', which is on par with the IDR of its 80% parent, Vietnam Oil and Gas Group (PVN, BB+/Stable). The SCP is driven by PV Power's strong market position as Vietnam's second-largest electricity producer, accounting for around 5% of the country's electricity output and 5% of installed capacity in 2023. PV Power also benefits from diversified fuel sources and long-term power-purchase agreements (PPAs) with Vietnam Electricity (EVN, BB+/Stable) for more than 80% of its electricity output. Consequently, the SCP can be pressured by a weakening in EVN's IDR or if PV Power's EBITDA net leverage stays above 5.0x for a sustained period. Fitch will equalises PV Power' IDR with PVN's IDR, even if PV Power's SCP weakens by one notch to 'bb'. This reflects its assessment of the parent's 'High' operational, 'Medium' strategic and 'Low' legal incentives to support the subsidiary, in accordance with its Parent and Subsidiary Linkage (PSL) Rating Criteria. KEY RATING DRIVERS Leading Market Position: PV Power's credit profile is driven by its position as Vietnam's second-largest electricity producer. It generates two-thirds of its capacity in the country's southern region, which faces a shortage in power generation. The company expects to maintain its market position in the medium-term through capacity additions, even as the country's installed capacity increases. PPAs Provide High Visibility: The long-term PPAs with EVN provide high revenue and cash-flow visibility. The PPAs, which have 20-25 year tenors and a capacity weighted-average remaining tenor of around 12 years, account for 85%-90% of PV Power's revenue. The remaining power is sold in the wholesale electricity market. The tariffs' capacity payments cover debt servicing and fixed operating costs, return on equity, variable payments and operation and maintenance charges for fuel, repair and maintenance. Moderate Leverage, Despite Large Capex: Fitch expects group EBITDA net leverage to peak at around 4.8x in 2025, against its estimate of 4.5x in 2024, as the Nhon Trach 3 and 4 projects are constructed. Its rating case assumes a six-month delay in the completion of the two projects. EBITDA net leverage should improve to below 4.0x in 2026 post commissioning of the projects. Fitch expects capex to peak at VND14.4 trillion in 2024 (2023: VND6.3 trillion, 2022: VN2.6 trillion). The liquefied natural gas (LNG) for Nhon Trach 3 and 4 will be imported and converted into natural gas by PetroVietnam Gas Joint Stock Corporation (PV Gas, BB+/Stable), a PVN group entity. Coal Plant Resumes Full Operation: Fitch expects electricity sales volume to increase by 37% in 2024, after a 31% increase in 2023, as the S1 unit of the Vung Ang 1 Thermal Power Plant resumed commercial operation in August 2023. The plant load factor (PLF) reached 41%, against 32% in 2022, and Fitch expects the PLF to further rebound to the historical level of around 58% from 2025. The company expects to recover the cost of repairs and disruption from insurance in 2024. Gas Supply Shortage: Fitch expects the lower utilisation rates to continue at PV Power's gas plants in 2024, due to a shortage of domestic gas supply. The PLFs at Nhon Trach 1 and 2 power plants declined to 18% and 44%, respectively, in 2023, from 36% and 62% in 2022. Fitch forecasts the PLFs at the two plants to average at around 18% and 50%, respectively, over the medium term. The PLFs at the Ca Mau 1 and 2 plants improved to 40% in 2023, from 28% in 2022, as PV Power secured additional gas supply from southwest Vietnam. Hydropower PLFs to Stabilise: Fitch expects PLFs at the Hua Na and Dakdrinh hydropower plants to maintain historical average levels of 38% and 48%, respectively, in the next three years. Above average rainfall in 2022 led to higher PLFs of 53% at Hua Na and 72% at Dakhdrinh Hydropower plant, compared to a more normalized performance of 38% and 58%, respectively, in 2023. Diversified Fuel Sources: PV Power's plants benefit from diverse fuel sources, including gas (64%), coal (29%), hydropower (7%) and solar (less than 1%) as of end-2023. Fitch expects the proportion of LNG in the fuel mix to reach 28% after the commissioning of the 1,624 megawatt Nhon Trach 3 and 4 thermal power plants, increasing fuel diversity. This should see the proportion of gas come down to 48%, coal 20% and hydropower 5%. Most of the required gas is supplied by PV Gas. DERIVATION SUMMARY Fitch assesses Global Power Synergy Public Company Limited's (GPSC, BBB-/Negative; SCP: bb) business profile to be stronger than that of PV Power. GPSC accounts for 10% of Thailand's electricity generation. It has greater revenue and cash flow predictability than PV Power, as its PPAs are with stronger counterparties. This is balanced by GPSC's weaker financial profile; Fitch expects its EBITDA net leverage to hover between 5.5x-6.5x, leading to a lower SCP of 'bb' compared with PV Power's 'bb+'. NTPC Limited (BBB-/Stable), India's largest power-generation company, accounts for 17% of the country's installed power-generation capacity and 25% of its electricity generation. Fitch assesses NTPC's SCP at 'bbb-', the same level as its IDR. The one-notch higher SCP assessment than that of PV Power reflects NTPC's stable operating profit due to a well-established regulatory return framework, which allows for timely pass-through of cost changes, despite its higher leverage. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer - Around 85% to 90% of the power generated to be sold through PPAs with EVN and the balance in the wholesale market - Revenue from long-term PPAs to include capacity charges to recover initial costs and return on investment as well as variable charges to cover fuel, operating and maintenance costs RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade - Positive rating action on PV Power's parent, PVN, and strengthening of linkages between PV Power and PVN. Factors that could, individually or collectively, lead to negative rating action/downgrade - A downgrade of PVN For PVN and EVN's ratings, the following sensitivities were outlined by Fitch in a rating action commentary on 13 December 2023: PVN Factors that could, individually or collectively, lead to positive rating action/upgrade: - Positive rating action on the sovereign, provided the likelihood of state support does not deteriorate significantly. Factors that could, individually or collectively, lead to negative rating action/downgrade: - Negative rating action on the sovereign. EVN Factors that could, individually or collectively, lead to positive rating action/upgrade: - Positive rating action on the sovereign, provided the likelihood of state support does not deteriorate significantly. Factors that could, individually or collectively, lead to negative rating action/downgrade: - Negative rating action on the sovereign. - Deterioration in EVN's SCP, along with significant weakening in linkages with the state. Fitch sees this as a remote prospect in the medium term. LIQUIDITY AND DEBT STRUCTURE Adequate Liquidity: PV Power had VND10.8 trillion in cash and cash equivalents at end-2023, against current debt maturities of VND5.5 trillion, including VND4.9 trillion in short-term loans. The loans are mainly for working capital and Fitch expects them to be refinanced on a yearly basis. Fitch forecasts the company to generate negative free cash flow in the near-term due to capex for its Nhon Trach 3 and 4 projects. However, direct and indirect linkages to PVN and the state, respectively, and sound banking relationships with domestic and international banks should support financial flexibility. ISSUER PROFILE The total capacity of PV Power, Vietnam's second-largest electricity producer, accounts for 5% of the nation's installed capacity. Energy output in 2023 was 14,968 billion kWh, equivalent to around 5% of the nation's commercial electricity output. PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS The ratings on PV Power are directly linked to those of its parent, PVN. A change in Fitch's assessment of PVN's IDR would automatically result in a change in the ratings on PV Power. 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 ----------- ------ ----- PetroVietnam Power Corporation - Joint Stock Company LT IDR BB+ Affirmed BB+ =============== X X X X X X X X =============== [*] BOND PRICING: For the Week May 20, 2024 to May 24, 2024 ----------------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRALIA --------- ACN 113 874 712 PTY 13.25 02/15/18 USD 0.20 ACN 113 874 712 PTY 13.25 02/15/18 USD 0.20 MOSAIC BRANDS LTD 8.00 09/30/24 AUD 0.91 VIRGIN AUSTRALIA HO 8.13 11/15/24 USD 0.25 VIRGIN AUSTRALIA HO 8.13 11/15/24 USD 0.25 VIRGIN AUSTRALIA HO 7.88 10/15/21 USD 0.23 VIRGIN AUSTRALIA HO 7.88 10/15/21 USD 0.23 VIRGIN AUSTRALIA HO 8.08 03/05/24 AUD 0.20 VIRGIN AUSTRALIA HO 8.25 05/30/23 AUD 0.20 VIRGIN AUSTRALIA HO 8.00 11/26/24 AUD 0.15 CHINA ----- AKESU TEXTILE CITY 7.50 06/21/24 CNY 20.11 AKESU TEXTILE CITY 7.50 06/21/24 CNY 20.11 ALETAI CITY JUJIN U 7.73 10/26/24 CNY 25.58 ANHUI PINGTIANHU IN 7.50 08/13/26 CNY 62.92 ANHUI PINGTIANHU IN 7.50 08/13/26 CNY 60.00 ANLU CONSTRUCTION D 7.80 11/28/26 CNY 64.55 ANLU CONSTRUCTION D 7.80 11/28/26 CNY 60.00 ANNING DEVELOPMENT 8.00 12/04/25 CNY 42.16 ANNING DEVELOPMENT 8.80 09/11/25 CNY 41.97 ANNING DEVELOPMENT 8.80 09/11/25 CNY 41.00 ANNING DEVELOPMENT 8.00 12/04/25 CNY 40.00 ANSHANG WANGTONG CO 7.50 05/06/26 CNY 42.61 ANSHANG WANGTONG CO 7.50 05/06/26 CNY 41.50 ANSHUN CITY XIXIU I 8.00 01/29/26 CNY 42.52 ANSHUN CITY XIXIU I 7.90 11/15/25 CNY 42.06 ANSHUN CITY XIXIU I 8.00 01/29/26 CNY 41.40 ANSHUN TRANSPORTATI 7.50 10/31/24 CNY 20.46 ANSHUN TRANSPORTATI 7.50 10/31/24 CNY 20.32 ANYUE XINGAN CITY D 7.50 05/06/26 CNY 42.23 ANYUE XINGAN CITY D 7.50 05/06/26 CNY 42.00 ANYUE XINGAN CITY D 7.50 01/30/25 CNY 20.68 ANYUE XINGAN CITY D 7.50 01/30/25 CNY 20.67 BIJIE CITY ANFANG C 7.80 01/18/26 CNY 42.17 BIJIE CITY ANFANG C 7.80 01/18/26 CNY 41.28 BIJIE QIXINGGUAN DI 8.05 08/16/25 CNY 40.90 BIJIE QIXINGGUAN DI 7.60 09/08/24 CNY 20.32 BIJIE TIANHE URBAN 8.05 12/03/25 CNY 42.17 BIJIE TIANHE URBAN 8.05 12/03/25 CNY 41.62 BIJIE XINTAI INVEST 7.80 11/01/24 CNY 20.34 BIJIE XINTAI INVEST 7.80 11/01/24 CNY 20.32 CAOXIAN SHANG DU IN 7.80 10/28/26 CNY 64.33 CAOXIAN SHANG DU IN 7.80 10/28/26 CNY 64.26 CHANGDE DEYUAN INVE 7.70 06/11/25 CNY 41.18 CHANGDE DEYUAN INVE 7.70 06/11/25 CNY 41.17 CHANGDE DINGCHENG J 7.58 10/19/25 CNY 41.74 CHANGDE DINGCHENG J 7.58 10/19/25 CNY 41.73 CHENGDU GARDEN WATE 8.00 06/13/25 CNY 41.04 CHENGDU GARDEN WATE 8.00 06/13/25 CNY 40.00 CHENGDU GARDEN WATE 7.50 09/11/24 CNY 20.31 CHENGDU GARDEN WATE 7.50 09/11/24 CNY 20.29 CHINA SOUTH CITY HO 9.00 10/09/24 USD 29.00 CHINA SOUTH CITY HO 9.00 04/12/24 USD 20.00 CHINA SOUTH CITY HO 9.00 12/11/24 USD 19.36 CHINA SOUTH CITY HO 9.00 06/26/24 USD 19.05 CHISHUI CITY CONSTR 8.50 01/18/26 CNY 42.00 CHISHUI CITY CONSTR 8.50 01/18/26 CNY 41.71 CHONGQING HONGYE IN 7.50 12/24/26 CNY 64.27 CHONGQING JIANGLAI 7.50 10/26/25 CNY 41.85 CHONGQING JIANGLAI 7.50 10/26/25 CNY 40.00 CHONGQING NANCHUAN 7.80 08/06/26 CNY 62.96 CHONGQING SHUANGFU 7.50 09/09/26 CNY 63.37 CHONGQING THREE GOR 7.80 03/01/26 CNY 42.63 CHONGQING THREE GOR 7.80 03/01/26 CNY 40.00 CHONGQING TONGRUI A 7.50 09/18/26 CNY 63.57 CHONGQING TONGRUI A 7.50 09/18/26 CNY 60.00 CHONGQING WANSHENG 7.50 03/27/25 CNY 20.78 CHONGQING WANSHENG 7.50 03/27/25 CNY 20.73 CHONGQING YUDIAN ST 8.00 11/30/25 CNY 42.20 CHUYING AGRO-PASTOR 8.80 06/26/19 CNY 19.40 DALI URBAN DEVELOPM 8.00 12/25/25 CNY 42.22 DALI URBAN DEVELOPM 8.00 12/25/25 CNY 41.40 DASHIQIAO URBAN CON 7.59 08/14/24 CNY 20.26 DASHIQIAO URBAN CON 7.59 08/14/24 CNY 20.26 DAWA COUNTY CITY CO 7.80 01/30/26 CNY 42.40 DAWA COUNTY CITY CO 7.80 01/30/26 CNY 38.80 DAWU COUNTY URBAN C 7.50 09/20/26 CNY 63.61 DAWU COUNTY URBAN C 7.50 09/20/26 CNY 60.00 DING NAN CITY CONST 7.80 04/08/26 CNY 42.65 DING NAN CITY CONST 7.80 04/08/26 CNY 40.00 DUJIANGYAN NEW CITY 7.80 10/11/25 CNY 41.90 DUJIANGYAN NEW CITY 7.80 05/02/25 CNY 21.01 DUJIANGYAN NEW CITY 7.80 05/02/25 CNY 20.00 DUJIANGYAN XINGYAN 7.50 11/01/26 CNY 63.96 FANGCHENG GANGSHI W 7.93 12/25/25 CNY 42.44 FANGCHENG GANGSHI W 7.95 10/11/25 CNY 41.85 FANGCHENG GANGSHI W 7.93 12/25/25 CNY 40.00 FANGCHENG GANGSHI W 7.95 10/11/25 CNY 40.00 FANTASIA GROUP CHIN 7.50 12/17/23 CNY 73.70 FANTASIA GROUP CHIN 7.80 06/30/28 CNY 44.53 FUJIAN FUSHENG GROU 7.90 12/17/21 CNY 70.99 FUJIAN FUSHENG GROU 7.90 11/19/21 CNY 60.00 FUZHOU LINCHUAN URB 8.00 02/26/26 CNY 42.59 GANZHOU NANKANG DIS 8.00 01/23/26 CNY 42.37 GANZHOU NANKANG DIS 8.00 10/29/25 CNY 41.91 GANZHOU NANKANG DIS 8.00 09/27/25 CNY 41.51 GANZHOU NANKANG DIS 8.00 01/23/26 CNY 40.00 GANZHOU NANKANG DIS 8.00 10/29/25 CNY 40.00 GANZHOU NANKANG DIS 8.00 09/27/25 CNY 40.00 GANZHOU ZHANGGONG C 7.80 10/16/25 CNY 42.68 GANZHOU ZHANGGONG C 7.80 10/16/25 CNY 41.72 GAOQING LU QING ASS 7.50 09/27/24 CNY 20.39 GAOQING LU QING ASS 7.50 09/27/24 CNY 20.30 GOME APPLIANCE CO L 7.80 12/21/24 CNY 37.00 GUANGAN XINHONG INV 7.50 06/03/26 CNY 63.09 GUANGAN XINHONG INV 7.50 06/03/26 CNY 62.84 GUANGDONG PEARL RIV 7.50 10/26/26 CNY 66.23 GUANGXI BAISE EXPER 7.59 01/08/26 CNY 42.18 GUANGXI BAISE EXPER 7.60 12/24/25 CNY 42.08 GUANGXI BAISE EXPER 7.60 12/24/25 CNY 40.00 GUANGXI BAISE EXPER 7.59 01/08/26 CNY 39.39 GUANGXI CHONGZUO UR 8.50 09/26/25 CNY 41.89 GUANGXI CHONGZUO UR 8.50 09/26/25 CNY 41.81 GUANGXI NINGMING HU 8.50 11/05/26 CNY 64.92 GUANGXI NINGMING HU 8.50 11/05/26 CNY 63.67 GUANGXI NINGMING HU 8.50 12/07/25 CNY 41.95 GUANGXI TIANDONG CO 7.50 06/04/27 CNY 45.00 GUANGYUAN CITY DEVE 7.50 10/25/27 CNY 37.46 GUANGYUAN YUANQU CO 7.50 12/23/26 CNY 64.43 GUANGYUAN YUANQU CO 7.50 10/30/26 CNY 62.64 GUANGYUAN YUANQU CO 7.50 12/23/26 CNY 60.00 GUANGYUAN YUANQU CO 7.50 10/30/26 CNY 60.00 GUANGZHOU FINELAND 13.60 07/27/23 USD 15.63 GUCHENG CONSTRUCTIO 7.88 04/27/25 CNY 20.96 GUCHENG CONSTRUCTIO 7.88 04/27/25 CNY 20.00 GUIXI STATE OWNED H 7.50 09/17/26 CNY 63.69 GUIXI STATE OWNED H 7.50 09/17/26 CNY 63.42 GUIYANG BAIYUN INDU 7.50 03/06/26 CNY 42.42 GUIYANG BAIYUN INDU 7.50 03/06/26 CNY 41.40 GUIYANG BAIYUN INDU 8.30 03/21/25 CNY 20.86 GUIYANG BAIYUN INDU 8.30 03/21/25 CNY 20.00 GUIYANG ECONOMIC DE 7.50 04/30/26 CNY 41.94 GUIYANG ECONOMIC DE 7.50 04/30/26 CNY 41.52 GUIYANG ECONOMIC DE 7.90 10/29/25 CNY 41.40 GUIYANG ECONOMIC DE 7.90 10/29/25 CNY 41.40 GUIYANG ECONOMIC TE 7.80 04/30/26 CNY 42.88 GUIYANG ECONOMIC TE 7.80 04/30/26 CNY 42.65 GUIYANG HI-TECH HOL 8.00 11/25/26 CNY 63.36 GUIYANG HI-TECH HOL 8.00 11/25/26 CNY 60.27 GUIZHOU CHANGSHUN C 8.50 03/19/26 CNY 42.94 GUIZHOU CHANGSHUN C 8.50 03/19/26 CNY 40.00 GUIZHOU EAST LAKE C 8.00 12/07/25 CNY 42.17 GUIZHOU EAST LAKE C 8.00 12/07/25 CNY 41.45 GUIZHOU HONGGUO ECO 7.80 11/24/24 CNY 20.55 GUIZHOU HONGGUO ECO 7.80 02/08/25 CNY 20.37 GUIZHOU HONGGUO ECO 7.80 11/24/24 CNY 10.50 GUIZHOU JINFENGHUAN 7.60 08/19/26 CNY 63.54 GUIZHOU JINFENGHUAN 7.60 08/19/26 CNY 62.00 GUIZHOU SHUANGLONG 7.50 04/20/30 CNY 60.00 GUIZHOU SHUICHENG E 7.50 10/26/25 CNY 41.77 GUIZHOU SHUICHENG E 7.50 10/26/25 CNY 19.50 GUIZHOU SHUICHENG W 8.00 11/27/25 CNY 41.31 GUIZHOU SHUICHENG W 8.00 11/27/25 CNY 41.31 GUIZHOU XINDONGGUAN 7.70 09/05/24 CNY 20.25 GUIZHOU ZHONGSHAN D 8.00 03/18/29 CNY 70.00 HAIAN URBAN DEMOLIT 8.00 12/21/25 CNY 42.26 HAIAN URBAN DEMOLIT 7.74 05/02/25 CNY 20.88 HAINAN AIRLINES HON 12.00 10/29/21 USD 3.80 HENGYANG CITY AND U 7.80 12/14/24 CNY 20.58 HENGYANG CITY AND U 7.80 12/14/24 CNY 20.58 HENGYANG CITY AND U 7.50 09/22/24 CNY 20.35 HENGYANG CITY AND U 7.50 09/22/24 CNY 20.35 HONGAN URBAN DEVELO 7.50 12/04/24 CNY 20.53 HONGAN URBAN DEVELO 7.50 12/04/24 CNY 20.00 HONGKONG IDEAL INVE 14.75 10/08/22 USD 1.57 HUAINAN SHAN NAN DE 7.94 04/01/26 CNY 42.89 HUAINAN SHAN NAN DE 7.94 04/01/26 CNY 40.00 HUAINAN URBAN CONST 7.58 02/12/26 CNY 42.42 HUAINAN URBAN CONST 7.50 03/20/25 CNY 20.83 HUAINAN URBAN CONST 7.50 03/20/25 CNY 20.00 HUBEI DAYE LAKE HIG 7.50 04/01/26 CNY 42.30 HUBEI DAYE LAKE HIG 7.50 04/01/26 CNY 41.50 HUBEI JIAKANG CONST 7.80 12/19/25 CNY 41.79 HUBEI YILING ECONOM 7.50 03/28/26 CNY 42.65 HUBEI YILING ECONOM 7.50 03/28/26 CNY 40.00 HUNAN CHUZHISHENG H 7.50 03/27/26 CNY 42.65 HUNAN CHUZHISHENG H 7.50 03/27/26 CNY 40.00 HUNAN MEISHAN RESOU 8.00 03/21/26 CNY 42.82 HUNAN MEISHAN RESOU 8.00 03/21/26 CNY 40.00 HUNAN TIANYI RONGTO 8.00 10/24/25 CNY 41.90 HUNAN TIANYI RONGTO 8.00 10/24/25 CNY 41.90 HUNAN TIANYI RONGTO 7.50 09/17/25 CNY 41.55 HUNAN XUANDA CONSTR 7.50 01/23/26 CNY 42.31 HUNAN XUANDA CONSTR 7.50 01/24/26 CNY 42.08 HUNAN XUANDA CONSTR 7.50 01/24/26 CNY 40.00 HUNAN XUANDA CONSTR 7.50 01/23/26 CNY 40.00 HUZHOU NEW CITY INV 7.50 11/23/24 CNY 20.53 HUZHOU NEW CITY INV 7.50 11/23/24 CNY 20.00 HUZHOU WUXING NANTA 7.90 09/20/25 CNY 41.69 JIA COUNTY DEVELOPM 7.50 01/21/27 CNY 63.49 JIA COUNTY DEVELOPM 7.50 01/21/27 CNY 58.00 JIAHE ZHUDU DEVELOP 7.50 03/13/25 CNY 20.80 JIAHE ZHUDU DEVELOP 7.50 03/13/25 CNY 20.00 JIANGSU YANGKOU POR 7.60 08/17/25 CNY 42.50 JIANGSU YANGKOU POR 7.60 08/17/25 CNY 41.52 JIANGSU ZHONGNAN CO 7.80 03/17/29 CNY 44.19 JIANGXI HUANGGANGSH 7.90 01/25/26 CNY 42.52 JIANGXI HUANGGANGSH 7.90 10/08/25 CNY 41.90 JIANGXI HUANGGANGSH 7.90 10/08/25 CNY 41.47 JIANGXI JIHU DEVELO 7.50 04/10/25 CNY 20.78 JIANGXI JIHU DEVELO 7.50 04/10/25 CNY 20.00 JIANGXI TONGGU CITY 7.50 04/21/27 CNY 64.49 JIANGYOU XINGYI PAR 7.80 12/17/25 CNY 51.85 JIANLI FENGYUAN CIT 7.50 01/14/26 CNY 42.12 JIANLI FENGYUAN CIT 7.50 01/14/26 CNY 40.00 JILIN ECONOMY TECHN 8.00 03/26/28 CNY 63.65 JILIN ECONOMY TECHN 8.00 03/26/28 CNY 54.12 JINGDEZHEN CERAMIC 7.50 08/27/25 CNY 41.46 JINGDEZHEN CERAMIC 7.50 08/27/25 CNY 41.43 JINING NEW CITY DEV 7.60 03/23/25 CNY 20.65 JINING NEW CITY DEV 7.60 03/23/25 CNY 20.00 JINXIANG COUNTY CIT 7.50 03/20/26 CNY 41.99 JINXIANG COUNTY CIT 7.50 03/20/26 CNY 40.92 JINZHOU CIHANG GROU 9.00 04/05/20 CNY 33.63 JUNAN COUNTY URBAN 7.50 09/26/24 CNY 20.36 JUNAN COUNTY URBAN 7.50 09/26/24 CNY 20.25 KAILI GUIZHOU TOWN 7.98 03/30/27 CNY 65.44 KAILI GUIZHOU TOWN 7.98 03/30/27 CNY 65.43 KUNMING AIRPORT INV 7.50 01/28/26 CNY 41.70 LAOHEKOU CITY CONST 7.50 06/09/24 CNY 70.38 LAOTING INVESTMENT 7.50 04/11/26 CNY 42.67 LAOTING INVESTMENT 7.50 04/11/26 CNY 39.80 LIJIN CITY CONSTRUC 7.50 04/26/26 CNY 42.62 LIJIN CITY CONSTRUC 7.50 12/20/25 CNY 41.99 LIJIN CITY CONSTRUC 7.50 04/26/26 CNY 40.00 LIJIN CITY CONSTRUC 7.50 12/20/25 CNY 40.00 LINFEN YAODU DISTRI 7.50 09/19/25 CNY 41.66 LINYI COUNTY CITY D 7.78 03/21/25 CNY 20.91 LINYI COUNTY CITY D 7.78 03/21/25 CNY 20.00 LINYI ZHENDONG CONS 7.50 12/06/25 CNY 41.89 LINYI ZHENDONG CONS 7.50 11/26/25 CNY 41.84 LINYI ZHENDONG CONS 7.50 12/06/25 CNY 41.45 LINYI ZHENDONG CONS 7.50 11/26/25 CNY 41.30 LIUPANSHUI AGRICULT 8.00 04/26/27 CNY 60.60 LIUPANSHUI AGRICULT 8.00 04/26/27 CNY 59.68 LONGNAN ECO&TECH DE 7.50 07/26/26 CNY 63.18 LUANCHUAN COUNTY TI 8.50 01/23/26 CNY 42.56 LUANCHUAN COUNTY TI 8.50 01/23/26 CNY 40.00 LUOHE ECONOMIC DEVE 7.50 12/18/25 CNY 42.00 LUOHE ECONOMIC DEVE 7.50 12/18/25 CNY 42.00 LUOYANG XIYUAN STAT 7.50 11/15/25 CNY 41.65 LUOYANG XIYUAN STAT 7.80 01/29/26 CNY 41.39 LUOYANG 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MIANYANG ANZHOU INV 7.90 11/25/26 CNY 64.39 MIANYANG ANZHOU INV 7.90 11/25/26 CNY 60.00 MIANYANG ANZHOU INV 8.10 11/22/25 CNY 41.99 MIANYANG ANZHOU INV 8.10 11/22/25 CNY 40.00 MIANYANG ANZHOU INV 8.10 05/04/25 CNY 21.15 MIANYANG ANZHOU INV 8.10 05/04/25 CNY 21.01 MIANYANG HUIDONG IN 8.10 04/28/25 CNY 21.06 MIANYANG HUIDONG IN 8.10 02/10/25 CNY 20.84 MIANZHU CITY JINSHE 7.87 12/18/25 CNY 42.10 MIANZHU CITY JINSHE 7.87 12/18/25 CNY 41.93 MILE AGRICULTURAL I 7.60 02/27/26 CNY 42.32 MILE AGRICULTURAL I 7.60 02/27/26 CNY 42.00 MILE AGRICULTURAL I 8.00 10/25/25 CNY 41.87 MUDANJIANG LONGSHEN 7.50 09/27/25 CNY 41.62 NANCHONG JIALING DE 7.98 05/23/25 CNY 41.06 NANCHONG JIALING DE 7.98 05/23/25 CNY 40.00 NANCHONG JIALING DE 7.80 12/12/24 CNY 20.58 NANCHONG JIALING DE 7.80 12/12/24 CNY 20.58 NEOGLORY HOLDING GR 8.10 11/23/18 CNY 72.00 NEOGLORY HOLDING GR 8.00 09/25/20 CNY 60.00 NEOGLORY HOLDING GR 8.00 10/22/20 CNY 56.00 NINGXIA SHENG YAN I 7.50 09/27/28 CNY 42.45 PANJIN CITY SHUANGT 8.50 01/29/26 CNY 42.68 PANJIN CITY SHUANGT 8.50 01/29/26 CNY 42.68 PANJIN CITY SHUANGT 8.70 12/20/25 CNY 42.56 PANJIN CITY SHUANGT 8.70 12/20/25 CNY 42.56 PANJIN LIAODONGWAN 7.50 12/28/26 CNY 64.46 PEIXIAN ECONOMIC DE 7.51 11/04/26 CNY 63.50 PEIXIAN ECONOMIC DE 7.51 11/04/26 CNY 60.00 PENGSHAN DEVELOPMEN 7.98 05/03/25 CNY 21.59 PENGSHAN DEVELOPMEN 7.98 05/03/25 CNY 21.06 PENGZE CITY DEVELOP 7.60 08/31/25 CNY 41.51 PENGZE CITY DEVELOP 7.60 08/31/25 CNY 41.49 PINGLIANG CHENGXIAN 7.80 03/29/26 CNY 42.71 PINGLIANG CHENGXIAN 7.80 03/29/26 CNY 41.75 PUDING YELANG STATE 8.00 03/13/25 CNY 20.85 PUDING YELANG STATE 8.00 03/13/25 CNY 20.70 PUDING YELANG STATE 7.79 11/13/24 CNY 20.37 PUDING YELANG STATE 7.79 11/13/24 CNY 20.25 PUER CITY SI MAO GU 7.50 03/14/26 CNY 42.37 PUER CITY SI MAO GU 7.50 03/14/26 CNY 40.00 QIANDONGNAN TRANSPO 8.00 01/15/27 CNY 65.11 QIANDONGNAN TRANSPO 8.00 01/15/27 CNY 65.11 QIANNANZHOU INVESTM 8.00 01/02/26 CNY 42.33 QIANNANZHOU INVESTM 8.00 01/02/26 CNY 41.00 QINGHAI PROVINCIAL 7.88 03/22/21 USD 1.87 QINGZHEN CITY CONST 7.50 03/18/26 CNY 42.37 QINGZHEN CITY CONST 7.50 03/18/26 CNY 42.37 QINGZHOU HONGYUAN P 7.60 06/17/27 CNY 64.28 QINGZHOU HONGYUAN P 7.60 06/17/27 CNY 62.85 QINZHOU BINHAI NEW 7.70 08/15/26 CNY 63.51 QINZHOU BINHAI NEW 7.70 08/15/26 CNY 63.51 QUJING CITY QILIN D 8.50 01/21/26 CNY 42.67 QUJING CITY QILIN D 8.50 01/21/26 CNY 40.00 RENHUAI WATER INVES 7.98 07/26/25 CNY 41.42 RENHUAI WATER INVES 8.00 12/26/25 CNY 38.95 RENHUAI WATER INVES 7.98 02/24/25 CNY 20.72 RUCHENG SHUNXING IN 7.50 01/07/26 CNY 42.26 RUCHENG SHUNXING IN 7.50 01/07/26 CNY 40.00 RUDONG NEW WORLD IN 7.50 12/06/26 CNY 64.13 RUDONG NEW WORLD IN 7.50 12/06/26 CNY 60.00 RUILI RENLONG INVES 8.00 09/20/26 CNY 63.29 RUILI RENLONG INVES 8.00 09/20/26 CNY 62.70 SHAANXI XIYUE HUASH 7.50 12/27/26 CNY 64.27 SHAANXI XIYUE HUASH 7.50 12/27/26 CNY 61.80 SHANDONG HONGHE HOL 7.50 01/29/26 CNY 42.00 SHANDONG OCEAN CULT 7.50 04/25/26 CNY 62.19 SHANDONG OCEAN CULT 7.50 03/28/26 CNY 41.88 SHANDONG RENCHENG R 7.50 01/23/26 CNY 41.63 SHANDONG RUYI TECHN 7.90 09/18/23 CNY 52.10 SHANDONG SANXING GR 7.90 08/30/24 CNY 58.00 SHANDONG URBAN CAPI 7.50 04/12/26 CNY 42.51 SHANDONG URBAN CAPI 7.50 04/12/26 CNY 40.00 SHANGLI INVESTMENT 7.80 01/22/26 CNY 42.15 SHANGLI INVESTMENT 7.50 06/01/25 CNY 40.99 SHANGLI INVESTMENT 7.50 06/01/25 CNY 40.86 SHANGLI INVESTMENT 7.80 01/22/26 CNY 40.49 SHANGRAO GUANGXIN U 7.95 07/24/25 CNY 41.43 SHANGRAO GUANGXIN U 7.95 07/24/25 CNY 41.34 SHANXI JINZHONG STA 7.50 05/05/26 CNY 42.57 SHAOYANG SAISHUANGQ 8.00 11/28/25 CNY 42.02 SHAOYANG SAISHUANGQ 8.00 11/28/25 CNY 40.00 SHEHONG STATE OWNED 7.60 10/25/25 CNY 41.88 SHEHONG STATE OWNED 7.50 08/22/25 CNY 41.51 SHEHONG STATE OWNED 7.50 08/22/25 CNY 40.00 SHEHONG STATE OWNED 7.60 10/25/25 CNY 40.00 SHEHONG STATE OWNED 7.60 10/22/25 CNY 40.00 SHEHONG STATE OWNED 7.60 10/22/25 CNY 21.42 SHENWU ENVIRONMENTA 9.00 03/14/19 CNY 12.00 SHEYANG URBAN CONST 7.80 11/27/24 CNY 20.55 SHEYANG URBAN CONST 7.80 11/27/24 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7.50 12/14/25 CNY 41.86 SIYANG JIADING INDU 7.50 04/27/25 CNY 20.87 SIYANG JIADING INDU 7.50 04/27/25 CNY 20.87 TAHOE GROUP CO LTD 7.50 08/15/20 CNY 27.00 TAHOE GROUP CO LTD 8.50 08/02/21 CNY 6.20 TAHOE GROUP CO LTD 7.50 10/10/20 CNY 5.90 TAHOE GROUP CO LTD 7.50 09/19/21 CNY 4.00 TAIXING CITY CHENGX 7.60 04/24/26 CNY 42.81 TAIXING CITY CHENGX 7.60 04/04/26 CNY 42.66 TAIXING CITY CHENGX 7.80 03/05/26 CNY 42.65 TAIXING CITY CHENGX 7.60 04/24/26 CNY 40.00 TAIXING CITY CHENGX 7.60 04/04/26 CNY 40.00 TAIXING CITY CHENGX 7.80 03/05/26 CNY 40.00 TAIXING XINGHUANG I 8.50 11/15/25 CNY 42.27 TAIXING XINGHUANG I 8.50 11/15/25 CNY 39.59 TAIZHOU FENGCHENGHE 7.90 12/29/24 CNY 20.65 TAIZHOU FENGCHENGHE 7.90 12/29/24 CNY 20.00 TAIZHOU HUACHENG ME 8.50 12/26/25 CNY 42.54 TAIZHOU HUACHENG ME 8.50 12/26/25 CNY 40.00 TANCHENG COUNTY CIT 7.50 04/09/26 CNY 42.60 TANCHENG COUNTY CIT 7.50 04/09/26 CNY 40.00 TANGSHAN HOLDING DE 7.60 05/16/25 CNY 40.94 TANGSHAN HOLDING DE 7.60 05/16/25 CNY 40.80 TAOYUAN COUNTY 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CNY 42.02 XINGYI XINHENG URBA 7.90 01/31/25 CNY 20.47 XINGYI XINHENG URBA 7.90 01/31/25 CNY 20.00 XINPING URBAN DEVEL 7.70 01/24/26 CNY 41.77 XINPING URBAN DEVEL 7.70 01/24/26 CNY 41.50 XINYU CITY YUSHUI D 7.50 09/24/26 CNY 63.53 XIPING COUNTY INDUS 7.50 12/26/24 CNY 20.60 XIPING COUNTY INDUS 7.50 12/26/24 CNY 20.00 XIUSHAN HUAXING ENT 7.50 09/25/25 CNY 41.56 XIUSHAN HUAXING ENT 7.50 09/25/25 CNY 41.56 XUZHOU CITY JIAWANG 7.98 05/06/26 CNY 62.14 XUZHOU CITY JIAWANG 7.88 01/28/26 CNY 41.79 XUZHOU CITY JIAWANG 7.88 01/28/26 CNY 40.58 XUZHOU CITY JIAWANG 7.98 05/06/26 CNY 40.50 YANCHENG URBANIZATI 7.50 03/04/27 CNY 65.10 YANGLING URBAN RURA 7.80 06/19/26 CNY 63.14 YANGLING URBAN RURA 7.80 06/19/26 CNY 60.00 YANGLING URBAN RURA 7.80 02/20/26 CNY 42.39 YANGLING URBAN RURA 7.80 02/20/26 CNY 40.00 YANGO JUSTICE INTER 7.88 09/04/24 USD 0.46 YANGO JUSTICE INTER 7.50 02/17/25 USD 0.34 YANGO JUSTICE INTER 8.25 11/25/23 USD 0.34 YANGO JUSTICE INTER 10.25 09/15/22 USD 0.15 YANGO JUSTICE INTER 9.25 04/15/23 USD 0.13 YANGO JUSTICE INTER 7.50 04/15/24 USD 0.12 YANGO JUSTICE INTER 10.25 03/18/22 USD 0.12 YANGO JUSTICE INTER 10.00 02/12/23 USD 0.04 YIBIN NANXI CAIYUAN 8.10 11/28/25 CNY 42.28 YIBIN NANXI CAIYUAN 8.10 11/28/25 CNY 40.93 YIBIN NANXI CAIYUAN 8.10 07/24/25 CNY 40.69 YIBIN NANXI CAIYUAN 8.10 07/24/25 CNY 40.00 YICHANG CHUANGYUAN 7.80 11/06/25 CNY 41.89 YINGKOU BEIHAI NEW 7.98 01/25/25 CNY 20.71 YINGKOU BEIHAI NEW 7.98 01/25/25 CNY 20.71 YINGTAN JUNENG INVE 8.00 05/06/26 CNY 43.07 YINGTAN JUNENG INVE 8.00 05/06/26 CNY 40.00 YIYANG COUNTY CITY 7.90 11/05/25 CNY 42.02 YIYANG COUNTY CITY 7.90 11/05/25 CNY 42.01 YIYANG COUNTY CITY 7.50 06/07/25 CNY 41.11 YIYANG COUNTY CITY 7.50 06/07/25 CNY 40.00 YIYANG LONGLING CON 7.60 01/23/26 CNY 42.07 YIYANG LONGLING CON 7.60 01/23/26 CNY 40.30 YIYUAN HONGDING ASS 7.50 08/17/25 CNY 41.46 YONGAN STATE-OWNED 8.50 11/26/25 CNY 41.91 YONGAN STATE-OWNED 8.50 11/26/25 CNY 40.00 YONGCHENG COAL & EL 7.50 02/02/21 CNY 39.88 YONGXIU CITY CONSTR 7.80 08/27/25 CNY 41.40 YONGXIU CITY CONSTR 7.80 08/27/25 CNY 40.00 YONGXIU CITY CONSTR 7.50 05/02/25 CNY 20.85 YONGXIU CITY CONSTR 7.50 05/02/25 CNY 20.00 YOUYANG COUNTY TAOH 7.50 09/28/25 CNY 41.63 YOUYANG COUNTY TAOH 7.50 09/28/25 CNY 41.25 YUANJIANG CITY CONS 7.50 01/18/26 CNY 42.12 YUANJIANG CITY CONS 7.50 01/18/26 CNY 42.12 YUDU ZHENXING INVES 7.50 05/03/25 CNY 20.90 YUDU ZHENXING INVES 7.50 05/03/25 CNY 20.49 YUEYANG CITY JUNSHA 7.96 03/13/27 CNY 64.99 YUEYANG CITY JUNSHA 7.96 03/13/27 CNY 60.51 YUEYANG CITY JUNSHA 7.96 04/23/26 CNY 42.87 YUEYANG CITY JUNSHA 7.96 04/23/26 CNY 40.00 YUEYANG HUILIN INVE 7.50 12/23/26 CNY 64.37 YUEYANG HUILIN INVE 7.50 12/23/26 CNY 60.00 YUTAI XINDA ECONOMI 7.50 04/10/26 CNY 42.62 YUTAI XINDA ECONOMI 7.50 04/10/26 CNY 42.00 ZENSUN ENTERPRISES 12.50 09/13/23 USD 4.69 ZENSUN ENTERPRISES 12.50 04/23/24 USD 3.94 ZHANGJIAJIE LOULI T 7.50 03/26/26 CNY 42.41 ZHANGJIAJIE LOULI T 7.50 03/26/26 CNY 42.41 ZHANGZI NATIONAL OW 7.50 10/18/26 CNY 63.94 ZHANGZI NATIONAL OW 7.50 10/18/26 CNY 60.00 ZHEJIANG CHANGXING 7.50 05/16/26 CNY 62.68 ZHEJIANG CHANGXING 7.50 05/16/26 CNY 61.60 ZHEJIANG CHANGXING 7.50 12/26/25 CNY 42.03 ZHEJIANG CHANGXING 7.50 12/26/25 CNY 40.00 ZHEJIANG HUZHOU NAN 7.80 08/21/25 CNY 41.88 ZHEJIANG WUYI CITY 8.00 12/21/25 CNY 42.19 ZHEJIANG WUYI CITY 8.00 12/21/25 CNY 42.17 ZHEJIANG WUYI CITY 8.00 08/10/25 CNY 41.48 ZHEJIANG WUYI CITY 8.00 08/10/25 CNY 40.00 ZHONGHONG HOLDING C 8.00 07/04/19 CNY 2.75 ZHONGXIANG CITY CON 7.50 07/05/26 CNY 60.95 ZHONGXIANG CITY CON 7.50 07/05/26 CNY 60.00 ZHOUSHAN ISLANDS NE 7.50 01/30/27 CNY 59.94 ZHOUSHAN ISLANDS NE 7.50 01/30/27 CNY 55.00 ZHUZHOU HI-TECH AUT 8.00 08/14/25 CNY 51.93 ZHUZHOU RAILWAY IND 7.50 09/25/24 CNY 20.34 ZIGUI COUNTY CHUYUA 7.80 02/12/28 CNY 65.74 ZIGUI COUNTY CHUYUA 7.80 02/12/28 CNY 60.00 ZIYANG KAILI INVEST 8.00 02/14/26 CNY 42.27 ZOUCHENG CITY LONGC 7.50 01/16/29 CNY 59.71 ZUNYI BOZHOU URBAN 7.85 10/24/24 CNY 20.37 ZUNYI BOZHOU URBAN 7.85 10/24/24 CNY 20.31 ZUNYI TRAFFIC TRAVE 7.80 03/07/29 CNY 70.00 ZUNYI TRAFFIC TRAVE 7.70 09/27/27 CNY 64.63 ZUNYI TRAFFIC TRAVE 7.70 09/27/27 CNY 63.75 ZUNYI URBAN CONSTRU 7.50 05/20/24 CNY 40.05 INDONESIA --------- WIJAYA KARYA PERSER 9.90 11/03/25 IDR 73.00 WIJAYA KARYA PERSER 9.90 11/03/25 IDR 73.00 WIJAYA KARYA PERSER 9.25 12/18/25 IDR 70.47 WIJAYA KARYA PERSER 9.25 12/18/25 IDR 70.33 WIJAYA KARYA PERSER 9.10 03/03/26 IDR 69.01 WIJAYA KARYA PERSER 9.10 03/03/26 IDR 68.41 WIJAYA KARYA PERSER 10.90 11/03/29 IDR 66.03 WIJAYA KARYA PERSER 10.90 11/03/29 IDR 66.03 WIJAYA KARYA PERSER 8.55 09/08/26 IDR 64.37 WIJAYA KARYA PERSER 10.50 11/03/27 IDR 64.27 WIJAYA KARYA PERSER 10.50 11/03/27 IDR 64.27 WIJAYA KARYA PERSER 8.55 09/08/26 IDR 63.81 WIJAYA KARYA PERSER 9.75 03/03/28 IDR 62.27 WIJAYA KARYA PERSER 9.75 03/03/28 IDR 61.92 WIJAYA KARYA PERSER 9.85 12/18/27 IDR 61.71 WIJAYA KARYA PERSER 9.85 12/18/27 IDR 61.02 WIJAYA KARYA PERSER 7.75 02/18/27 IDR 60.71 WIJAYA KARYA PERSER 9.25 09/08/28 IDR 60.30 WIJAYA KARYA PERSER 9.25 09/08/28 IDR 60.20 WIJAYA KARYA PERSER 7.75 02/18/27 IDR 59.97 WIJAYA KARYA PERSER 8.30 02/18/29 IDR 57.65 WIJAYA KARYA PERSER 8.30 02/18/29 IDR 57.54 WIJAYA KARYA PERSER 8.60 12/18/25 IDR 29.78 INDIA ----- AXIS FINANCE LTD 8.10 11/17/28 INR 73.41 BHARAT SANCHAR NIGA 7.55 03/20/34 INR 99.61 IIFL SAMASTA FINANC 10.75 02/24/25 INR 50.23 IKF FINANCE LTD 10.60 03/27/25 INR 49.79 MAHANAGAR TELEPHONE 7.51 03/06/34 INR 53.26 PIRAMAL CAPITAL & H 8.50 04/18/23 INR 34.25 SOUTH KOREA ----------- KOSME SCALE-UP SECU 24.00 12/30/24 KRW 73.40 KOSME SCALE-UP SECU 20.00 03/30/25 KRW 67.75 KOSME SCALE-UP SECU 20.00 03/30/25 KRW 67.75 SAMPYO CEMENT CO LT 7.50 07/20/14 KRW 70.00 SAMPYO CEMENT CO LT 8.10 06/26/15 KRW 70.00 SAMPYO CEMENT CO LT 8.10 04/12/15 KRW 70.00 SAMPYO CEMENT CO LT 8.30 09/10/14 KRW 70.00 SAMPYO CEMENT CO LT 8.30 04/20/14 KRW 70.00 SRI LANKA --------- SRI LANKA GOVERNMEN 12.40 05/15/31 LKR 73.63 SRI LANKA GOVERNMEN 12.40 06/15/32 LKR 70.66 SRI LANKA GOVERNMEN 12.40 01/15/33 LKR 66.46 SRI LANKA GOVERNMEN 12.40 03/15/35 LKR 62.82 SRI LANKA GOVERNMEN 12.40 04/15/36 LKR 61.43 SRI LANKA GOVERNMEN 12.40 05/15/37 LKR 60.27 SRI LANKA GOVERNMEN 12.40 06/15/38 LKR 59.30 SRI LANKA GOVERNMEN 7.85 03/14/29 USD 57.28 SRI LANKA GOVERNMEN 7.85 03/14/29 USD 57.24 SRI LANKA GOVERNMEN 7.55 03/28/30 USD 56.99 SRI LANKA GOVERNMEN 7.55 03/28/30 USD 56.96 MALAYSIA -------- CAPITAL A BHD 8.00 12/29/28 MYR 0.82 PHILIPPINES ----------- BAYAN TELECOMMUNICA 15.00 07/15/06 USD 14.88 BAYAN TELECOMMUNICA 15.00 07/15/06 USD 14.88 SINGAPORE --------- BAKRIE TELECOM PTE 11.50 05/07/15 USD 0.17 BAKRIE TELECOM PTE 11.50 05/07/15 USD 0.17 BLD INVESTMENTS PTE 8.63 03/23/15 USD 6.75 DAVOMAS INTERNATION 11.00 12/08/14 USD 0.27 DAVOMAS INTERNATION 11.00 12/08/14 USD 0.27 DAVOMAS INTERNATION 11.00 05/09/11 USD 0.27 DAVOMAS INTERNATION 11.00 05/09/11 USD 0.27 ENERCOAL RESOURCES 9.25 08/05/14 USD 45.75 ITNL OFFSHORE PTE L 7.50 01/18/21 CNY 17.53 MICLYN EXPRESS OFFS 8.75 11/25/18 USD 0.86 NOMURA INTERNATIONA 7.65 10/04/37 AUD 63.14 ORO NEGRO DRILLING 7.50 01/24/24 USD 0.50 RICKMERS MARITIME 8.45 05/15/17 SGD 5.00 SWIBER HOLDINGS LTD 7.75 09/18/17 CNY 6.13 ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman, Editors. Copyright 2024. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. *** End of Transmission ***