/raid1/www/Hosts/bankrupt/TCRAP_Public/240902.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Monday, September 2, 2024, Vol. 27, No. 176
Headlines
A U S T R A L I A
ANSA HOMES: In Administration, 45 Houses Left Unfinished
CHILDCARE DEVELOPMENT: First Creditors' Meeting Set for Sept. 3
INSPIRED ADVENTURES: First Creditors' Meeting Set for Sept. 4
PENGUIN COMPOSITES: First Creditors' Meeting Set for Sept. 4
REDFLOW INTERNATIONAL: First Creditors' Meeting Set for Sept. 4
REX AIRLINES: Owes WA Local Governments More Than AUD800K
SPORTS MODEL: First Creditors' Meeting Set for Sept. 4
THINK TANK 2024-2: S&P Assigns Prelim B(sf) Rating on Cl. F Notes
TIGER SYNERGY: First Creditors' Meeting Set for Sept. 4
C H I N A
GUANGZHOU R&F: Vows to Sell Assets as Cash Shortfall Widens
MERCURITY FINTECH: Rong Gan Holds 7.6% Stake, Surrenders Warrants
SHIMAO GROUP: Interim Loss Widens to CNY22.6 Billion in H1 2024
SUNAC CHINA: First-Half Net Loss Narrows 2.7% to CNY15 Billion
XJ INTERNATIONAL: HK Court Dismisses Case to Wind Up Company
I N D I A
AAI KRUPA: ICRA Keeps D Debt Ratings in Not Cooperating Category
AHLADA ENGINEERS: Ind-Ra Cuts Bank Loan Rating to C
AKSHAR GINNING: ICRA Keeps B+ Debt Rating in Not Cooperating
ALUMINIUM INDIA: ICRA Keeps D Debt Ratings in Not Cooperating
BABINA HEALTHCARE: CRISIL Reaffirms B+ Rating on INR15cr LT Loan
BEVCON WAYORS: ICRA Keeps D Debt Ratings in Not Cooperating
CHIDANAND BASAPRABHU: Ind-Ra Affirms BB Bank Loan Rating
HAL-KO-INFRA PROJECTS: CRISIL Ups Rating on INR2.25cr Loan to B
HASIMARA INDUSTRIES: ICRA Keeps B+ Ratings in Not Cooperating
KAKATIYA INDUSTRIES: Ind-Ra Affirms BB+ Rating, Outlook Stable
KAYGAON PAPER: Ind-Ra Affirms BB+ Loan Rating, Outlook Stable
LEAPFROG ENGINEERING: ICRA Withdraws D Rating on INR10cr Loans
NATURAL SUGAR: ICRA Keeps D Debt Ratings in Not Cooperating
NICHEM INDUSTRIES: CRISIL Keeps B+ Ratings in Not Cooperating
NILADRI MOTORS: CRISIL Keeps B Debt Rating in Not Cooperating
NILESH TIMBERS: CRISIL Keeps B Debt Ratings in Not Cooperating
NILKANTH COTTON: CRISIL Keeps D Debt Ratings in Not Cooperating
NUTRI FIRST: CRISIL Keeps B Debt Rating in Not Cooperating
PN WRITER: Ind-Ra Moves D Term Loan Rating to NonCooperating
R.K. PULSES: CRISIL Keeps B Debt Rating in Not Cooperating
RASIKLAL SANKALCHAND: CRISIL Keeps D Ratings in Not Cooperating
SAFILO HEALTHCARE: CRISIL Keeps B Debt Ratings in Not Cooperating
SAM INDUSTRIAL: CRISIL Keeps D Debt Ratings in Not Cooperating
SATYAM ROLLER: CRISIL Keeps B Debt Rating in Not Cooperating
SATYAM SOLUTIONS: CRISIL Keeps D Debt Ratings in Not Cooperating
SHAGUN EXPLOCHEM: Ind-Ra Gives BB- Loan Rating, Outlook Stable
SHANTHADURGA RICE: CRISIL Keeps B Debt Ratings in Not Cooperating
SHIMLA TOLLS: ICRA Lowers Rating on INR32cr Term Loan to D
SIYARAM EXPORTS: CRISIL Keeps D Debt Ratings in Not Cooperating
SMILAX PSYLLIUM: Ind-Ra Affirms BB+ Loan Rating, Outlook Stable
SULTANPURE TEXTILE: Ind-Ra Affirms B+ Bank Loan Rating
SURYA POULTRY: CRISIL Keeps D Debt Ratings in Not Cooperating
SUYASH HEALTHCARE: CRISIL Assigns B+ Rating to INR37.6cr Loan
THAMIZH CONSTRUCTIONS: CRISIL Keeps B+ Ratings in Not Cooperating
TORNADO MOTORS: CRISIL Keeps D Debt Ratings in Not Cooperating
TORRID MOTORS: CRISIL Keeps D Debt Ratings in Not Cooperating
UMASONS AUTO: Ind-Ra Assigns BB+ Bank Loan Rating
VAISHNAV METAL: CRISIL Keeps D Debt Ratings in Not Cooperating
VAMSI PHARMA: ICRA Keeps D Debt Ratings in Not Cooperating
VANSHIKA CONSTRUCTIONS: Ind-Ra Assigns B+ Rating, Outlook Stable
VIJAI ELECTRICALS: Ind-Ra Hikes Bank Loan Rating to B+
N E W Z E A L A N D
4M BEL AIR: Court to Hear Wind-Up Petition on Sept. 27
PIKIOTERANGI TRANSPORT: Court to Hear Wind-Up Petition on Sept. 10
PUMP SAFE: BDO Tauranga Appointed as Liquidators
SUCCEED DEVELOPMENT: Creditors' Proofs of Debt Due on Sept. 30
TJ BROTHERS: Court to Hear Wind-Up Petition on Sept. 10
P A K I S T A N
PAKISTAN: Moody's Ups Issuer & Sr. Unsecured Debt Ratings to Caa2
P H I L I P P I N E S
AMA RURAL: PDIC Still Awaits Bank's Reply on Meeting with CA
S I N G A P O R E
AVPV WEST: Creditors' Proofs of Debt Due on Sept. 30
FAR EAST MINING: Commences Wind-Up Proceedings
MAXDIN 3: PwC Appointed as Provisional Liquidators
SHINHAN TECH-ENG: Creditors' Proofs of Debt Due on Sept. 23
YONGNAM HOLDINGS: Court Enters Wind-Up Order
S O U T H K O R E A
SOUTH KOREA: Sets Deadline for Lenders to Clean Up Property Loans
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A U S T R A L I A
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ANSA HOMES: In Administration, 45 Houses Left Unfinished
--------------------------------------------------------
News.com.au reports that dozens of homes have been left unfinished
as a NSW builder is put into liquidation.
Administrators were appointed to oversee the winding up of Ansa
Homes on August 28.
A spokeswoman for the administrator firm Jirsch Sutherland, told
NewsWire that Ansa Homes is AUD 3 million in debt and leaves at
least 45 homes unfinished.
The Building Commission NSW suspended Ansa Homes' building licence
for 60 days, effective July 4 this year.
"The company had effectively ceased to trade prior to their
appointment (of administrators)," news.com.au quotes the
spokeswoman as saying. "The major catalyst was the building
license suspension, which resulted in cash flow issues."
When the licence was suspended 45 were unfinished, but
administrators were investigating further, news.com.au notes.
Staff have been stood down and creditors are owed more than AUD3
million, which includes ATO debt, she said.
According to news.com.au, the Building Commission NSW found
evidence of defective building work and improper conduct during
inspections at Ansa Homes sites earlier in the year, and all work
stopped immediately.
But just three days before that suspension was due to expire,
Ansa's building licence was cancelled, as court proceedings
revealed the company would be liquidated.
The company was registered in Edmondson Park in Sydney's west
before the administrators stepped in, adds news.com.au.
CHILDCARE DEVELOPMENT: First Creditors' Meeting Set for Sept. 3
---------------------------------------------------------------
A first meeting of the creditors in the proceedings of Childcare
Development Opportunities Pty Ltd, Civic Avenue Early Learning Pty
Ltd, St Helena Early Learning Pty Ltd and Sturt Street Early
Learning Pty. Ltd. will be held on Sept. 3, 2024 at 10:00 a.m. at
the offices of WLP Restructuring at Suit 19.02, Level 19, 1
Castlereagh Street in Sydney and via electronic facilities.
Alan Walker and Glenn Livingstone of WLP Restructuring were
appointed as administrators of the company on Aug. 22, 2024.
INSPIRED ADVENTURES: First Creditors' Meeting Set for Sept. 4
-------------------------------------------------------------
A first meeting of the creditors in the proceedings of Inspired
Adventures Pty. Limited (trading name: "inspired store" and "The
Good Wardrobe") will be held on Sept. 4, 2024, at 11:00 a.m. at the
offices of Vincents Level 14, 25 Martin Place, in Sydney, NSW, and
via Zoom.
Henry McKenna of Vincents was appointed as administrator of the
company on Aug. 23, 2024.
PENGUIN COMPOSITES: First Creditors' Meeting Set for Sept. 4
------------------------------------------------------------
A first meeting of the creditors in the proceedings of Penguin
Composites Pty Ltd will be held on Sept. 4, 2024, at 2:00 a.m. at
Penguin Surf Life Saving Club, 62-68 Preservation Drive, in
Preservation Bay, Tasmania.
Adam Johnston of Apex Advisory Australia was appointed as
administrator of the company on Aug. 23, 2024.
REDFLOW INTERNATIONAL: First Creditors' Meeting Set for Sept. 4
---------------------------------------------------------------
A first meeting of the creditors in the proceedings of Redflow
International Pty Ltd, Redflow R&D Pty Ltd, ZCell Australia Pty Ltd
and Redflow Limited will be held on Sept. 4, 2024, at 10:00 a.m.
via MS Teams.
David Orr and Richard Hughes of Deloitte Financial Advisory were
appointed as administrators of the company on Aug. 23, 2024.
REX AIRLINES: Owes WA Local Governments More Than AUD800K
---------------------------------------------------------
News.com.au reports that collapsed airline Rex owes two Western
Australia local governments more than AUD800,000.
Regional Express, better known as Rex, went into voluntary
administration at the end of July, grounding its Boeing 737 flights
between capital cities.
News.com.au says flights to and from regional cities on smaller
planes have continued while administrators comb through the books
and look for a buyer.
Ernst and Young administrators have since taken over the company.
According to news.com.au, the WA state government had reportedly
last year renewed the airline's rights to operate several flight
routes between Perth to Esperance, Albany, Carnarvon and Monkey Mia
until 2028, according to the ABC, however Rex allegedly owes Shire
of Esperance and the City of Albany more than AUD800,000.
The Shire of Esperance told administrators they are owed AUD440,587
by the collapsed airline, while the City of Albany claimed it was
owed AUD456,000.
The debts are over landing fees and other services, according to
the ABC.
Total debts amassing AUD500 million are also allegedly owed to more
than 4,800 creditors, news.com.au notes. It is understood
administrators have guaranteed payments from the time they took
over.
News.com.au relates that the local governments are now pushing for
further protections when it comes to future aviation agreements,
similar to those in place at the City of Kalgoorlie-Boulder after
Virgin Australia collapsed into voluntary administration in 2020.
The city was owed AUD921,777, and managed to get back AUD49,024,
news.com.au discloses.
A "stringent process" is reportedly now in place at the City of
Kalgoorlie-Boulder to ensure payments are collected, with WA local
governments hoping to follow in the City of Kalgoorlie-Boulder's
footsteps.
An Esperance Shire spokesperson told the ABC ratepayers could be
impacted significantly by any loss of money to local governments,
as the money was used for airport maintenance, news.com.au adds.
About Rex Airlines
Regional Express Pty. Ltd., trading as Rex Airlines (and as
Regional Express Airlines on regional routes), is an Australian
airline based in Mascot, New South Wales. It operates scheduled
regional and domestic services. It is Australia's largest regional
airline outside the Qantas group of companies and serves all 6
states across Australia. It is the primary subsidiary of Regional
Express Holdings.
On July 30, 2024, Samuel Freeman, Justin Walsh, and Adam Nikitins
of Ernst & Young Australia (EY Australia) were appointed Joint and
Several Voluntary Administrators by the Rex Group's respective
Boards of Directors. The companies in administration are:
* Regional Express Holdings Limited;
* Regional Express Pty Limited;
* Rex Airlines Pty Ltd;
* Rex Investment Holdings Pty Limited; and
* Air Partners Pty Ltd.
SPORTS MODEL: First Creditors' Meeting Set for Sept. 4
------------------------------------------------------
A first meeting of the creditors in the proceedings of The Sports
Model Project Pty Ltd will be held on Sept. 4, 2024, at 11:00 a.m.
at the offices of HoganSprowles, Level 9, 60 Pitt Street, in
Sydney, NSW, and via virtually.
Michael Hogan of HoganSprowles was appointed as administrator of
the company on Aug. 23, 2024.
THINK TANK 2024-2: S&P Assigns Prelim B(sf) Rating on Cl. F Notes
-----------------------------------------------------------------
S&P Global Ratings assigned its preliminary ratings to eight of the
nine classes of residential mortgage-backed, floating-rate
pass-through notes to be issued by BNY Trust Co. of Australia Ltd.
as trustee of Think Tank Residential Series 2024-2 Trust.
Think Tank Residential Series 2024-2 Trust is a securitization of
loans to residential borrowers, secured by first-registered
mortgages over Australian residential properties originated by
Think Tank Group Pty Ltd. (Think Tank).
The ratings reflect the following factors.
S&P said, "We have considered the credit risk of the underlying
collateral portfolio, including the fact that this is a closed
portfolio, which means no further loans will be assigned to the
trust after the closing date.
"The credit support is sufficient to withstand the stresses we
apply. This credit support comprises note subordination for each
class of rated note."
The transaction's cash flows can meet timely payment of interest
and ultimate payment of principal to the noteholders under the
rating stresses. Key factors are the level of subordination
provided, the condition that a minimum margin will be maintained on
the assets, an amortizing liquidity facility sized at 1.5% of the
outstanding balance of the rated notes, the yield reserve, and the
principal draw function.
There is an extraordinary expense reserve of A$150,000, funded from
day one by Think Tank, available to meet extraordinary expenses.
The reserve will be topped up via excess spread if drawn.
S&P said, "Our ratings also reflect the legal structure of the
trust, which has been established as a special-purpose entity and
meets our criteria for insolvency remoteness.
"We have also considered the counterparty exposure to Commonwealth
Bank of Australia as bank account provider and Westpac Banking
Corp. as liquidity facility provider. The transaction documents for
the bank account and liquidity facility include downgrade language
consistent with our counterparty criteria."
Preliminary Ratings Assigned
Think Tank Residential Series 2024-2 Trust
Class A1-S, A$100.00 million: AAA (sf)
Class A1-L, A$300.00 million: AAA (sf)
Class A2, A$61.00 million: AAA (sf)
Class B, A$16.00 million: AA (sf)
Class C, A$10.50 million: A (sf)
Class D, A$6.00 million: BBB (sf)
Class E, A$2.75 million: BB (sf)
Class F, A$1.75 million: B (sf)
Class G, A$2.00 million: Not rated
TIGER SYNERGY: First Creditors' Meeting Set for Sept. 4
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Tiger
Synergy Pty Ltd, trading as Wakuda, will be held on Sept. 4, 2024,
at 9:30 a.m. via videoconference only.
Roberto Crispino, Richard Albarran and Brent Kijurina of Hall
Chadwick were appointed as administrators of the company on Aug.
23, 2024.
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C H I N A
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GUANGZHOU R&F: Vows to Sell Assets as Cash Shortfall Widens
-----------------------------------------------------------
Caixin Global reports that Guangzhou R&F Properties Co. Ltd. said
it will continue offloading assets to repay debts as the embattled
developer grapples with a deepening liquidity crunch amid China's
prolonged housing market slump.
Hong Kong-listed R&F reported total assets of CNY312.2 billion
($43.8 billion) and total liabilities of CNY268 billion by the end
of the first half, resulting in a debt-to-asset ratio of 85.84%,
according to its interim report released on Aug. 29, Caixin
relays.
About Guangzhou R&F
Guangzhou R&F Properties Co., Ltd. operates real estate businesses.
The Company provides housing renovation, housing loans, real estate
brokerage, property management, and other services. Guangzhou R&F
Properties also operates hotel management.
As reported in the Troubled Company Reporter-Asia Pacific in late
April 2023, Fitch Ratings has affirmed the Long-Term
Foreign-Currency Issuer Default Ratings (IDR) on Guangzhou R&F
Properties Co. Ltd. and its subsidiary, R&F Properties (HK) Company
Limited (RFHK), at 'RD' (Restricted Default). It has also affirmed
RFHK's senior unsecured rating and the rating on the
RFHK-guaranteed notes issued by Easy Tactic Limited at 'C', with
the Recovery Ratings of 'RR5'.
At the same time, Fitch has chosen to withdraw the ratings on
Guangzhou R&F and RFHK for commercial reasons.
MERCURITY FINTECH: Rong Gan Holds 7.6% Stake, Surrenders Warrants
-----------------------------------------------------------------
Xin Rong Gan disclosed in a Schedule 13D/A Report filed with the
U.S. Securities and Exchange Commission that as of May 23, 2024,
they beneficially owned a total of 4,600,000 of Mercurity Fintech
Holding Inc.'s ordinary shares (constituting 7.6% of the total
issued and outstanding ordinary shares based on the sum of
60,819,897 ordinary shares of the Company issued and outstanding as
of July 31, 2024.
On March 23, 2023, Xin Rong Gan entered into a share ownership
transfer agreement and a warrant transfer agreement with Hanqi Li,
pursuant to which Xin Rong Gan acquired from Ms. Hanqi Li 4,600,000
ordinary shares and warrants to purchase 13,800,000 ordinary shares
of the Company for US$3,450,000 derived from personal funds.
On May 23, 2024, Xin Rong Gan surrendered 13,800,000 warrants to
the Company pursuant to a warrant surrender agreement, for no
consideration.
Xin Rong Gan acquired the Shares for investment purposes and
intends to review and evaluate its investment in the Company on a
continuous basis. Depending upon various factors, including but not
limited to the business, prospects and financial condition of Xin
Rong Gan and the Company and other developments concerning
Reporting Person and the Company, market conditions and other
factors that Xin Rong Gan may deem relevant to its investment
decision, and subject to compliance with applicable laws, rules and
regulations, Xin Rong Gan may in the future take actions with
respect to its investment in the Company as it deems appropriate
with respect to any or all matters required to be disclosed in this
Schedule 13D, including without limitation changing its intentions
or increasing or decreasing its investment in the Company or
engaging in any hedging or other derivative transactions with
respect to the Ordinary Shares.
A full-text copy of Xin Rong Gan's SEC Report is available at:
https://tinyurl.com/3syn3ejj
About Mercurity
Formerly known as JMU Limited, Mercurity Fintech Holding Inc. is a
digital fintech company with subsidiaries specializing in
distributed computing and digital consultation across North America
and the Asia-Pacific region and is in the process of applying for
FINRA approval to add brokerage services to its business. The
Company's focus is on delivering innovative financial solutions
while adhering to principles of compliance, professionalism, and
operational efficiency. The Company's aim is to contribute to the
evolution of digital finance by providing secure and innovative
financial services to individuals and businesses.
As of Dec. 31, 2023, the Company had $30.39 million in total
assets, $12.56 million in total liabilities, and $17.83 million in
total shareholders' equity.
Singapore-based Onestop Assurance PAC, the Company's auditor since
2023, issued a "going concern" qualification in its report dated
April 22, 2024, citing that the Company has incurred recurring
operating losses and negative cash flows from operating activities
and has an accumulated deficit, which raise substantial doubt about
its ability to continue as a going concern.
SHIMAO GROUP: Interim Loss Widens to CNY22.6 Billion in H1 2024
---------------------------------------------------------------
The Standard reports that Shimao Group saw its interim loss widen
by 88 percent to CNY22.67 billion from a year ago, due to a drop in
gross profit and an increase in other losses.
According to The Standard, the Chinese developer's gross margin
slumped to 0.1 percent from 10.3 percent during the period as
continued downturn in the real estate sector called for increased
provision for impairment losses on properties. Average costs
including land and construction also went up.
The factors contributed to the gross profit shrinking by 99.5
percent to just CNY15 million, compared to CNY3.12 billion in the
first half of 2023.
The company declared no interim dividend, with a loss per share of
CNY6, The Standard discloses.
Meanwhile, revenue also recorded a decline of 4 percent
year-on-year to CNY2.92 billion, with the primary business - sales
of properties accounting for approximately 80 percent of the total
revenue - lowering by 5 percent to CNY23.17 billion, The Standard
reports.
Hui Wing Mau, 74, will retire as Shimao's chairman, to be succeeded
by his son Hui Sai Tan with effect from September 1, according to a
filing by the company on Aug. 29.
About Shimao Group
China-based Shimao Group Holdings Ltd, formerly Shimao Property
Holdings Ltd, is an investment holding company principally engaged
in the sale of properties. The Company operates its business
through four segments. The sales of Properties segment is mainly
engaged in the development of residential real estate. The Property
Management Income and Others is mainly engaged in property
management. The Hotel Operation Income segment is mainly engaged in
hotel operations. The Commercial Properties Operation Income
segment is mainly engaged in the development, investment and
operation of commercial, office and industrial park property
projects.
As reported in the Troubled Company Reporter-Asia Pacific in July
2022, Shimao Group has missed the interest and principal payment of
a US$1 billion offshore bond due on July 3, 2022.
SUNAC CHINA: First-Half Net Loss Narrows 2.7% to CNY15 Billion
--------------------------------------------------------------
Yicai Global reports that Sunac China Holdings said its net loss
shrank 2.7 percent in the first half of this year from a year ago
by focusing on ensuring project delivery and resolving debt.
Net loss was nearly CNY15 billion (USD2.1 billion) in the first six
months of this year, the Tianjin-based company announced in a
financial report on Aug. 29, Yicai discloses. Operating revenue
tumbled 41 percent to CNY34.3 billion, it added.
Sunac has long ranked among the top ten developers in China by
property sales, which remained its main source of income after
accounting for 82 percent of its total, it said, Yicai relays.
Revenue from property management services made up 9.9 percent,
while the rest came from parks, commercial properties, hotels, and
other cultural and tourism services, it added.
"Sunac has always taken the guaranteed home delivery as its primary
operational objective," Chairman Sun Hongbin said. Thanks to
various support policies, it delivered around 58,000 new homes in
52 cities in the first half of the year, with the delivery target
for the second half being over 170,000 homes, Sun added.
"In the first half of 2024, Sunac continued to proactively resolve
its debt risks, and its overall debt remained stable," Yicai quotes
Sun as saying. "Given that the market recovery continued to fall
short of expectations, it has rolled over the principal and
interest payments on its onshore public debentures, which would
have been paid in June and September, to the end of the year."
Sunac was one of the first large Chinese developers to go through
debt restructuring, Yicai notes. On Dec. 30, 2022, it completed the
extension of its first maturing domestic corporate bond while
completing the restructuring of its offshore debt on Nov. 20 last
year.
Sunac's total borrowings amounted to about CNY277.4 billion
(USD39.1 billion) as of June 30, with a cash balance (including
cash and cash equivalents and restricted cash) of around CNY25.7
billion, the firm said. The principal amount of borrowings maturing
and unpaid was just below CNY107 billion.
"As the real estate market downturn continued and the adjustment
depth and time exceeded expectations, in the second half of 2024,
Sunac will continue to actively communicate with creditors on
current debt problems and potential debt pressures, seek extension
and overall solutions, and strive to maintain the stability of debt
fundamentals," Sun noted.
About Sunac China
Sunac China Holdings Limited (SEHK:1918) --
http://www.sunac.com.cn/-- engages in the sales of properties in
the People's Republic of China. The Company operates its business
through two segments: Property Development and Property Management
and Others. The Company's subsidiaries include Sunac Real Estate
Investment Holdings Ltd., Qiwei Real Estate Investment Holdings
Ltd. and Yingzi Real Estate Investment Holdings Ltd.
Sunac is among a string of Chinese property developers that have
defaulted on their offshore debt payment obligations since the
sector was hit by a liquidity crisis in 2021, roiling global
markets, according to Reuters.
Creditors of Sunac China Ltd have approved its $9 billion offshore
debt restructuring plan, the company said on Sept. 18, marking the
first approval of such debt overhaul by a major Chinese property
developer.
As reported in the Troubled Company Reporter-Asia Pacific on Sept.
21, 2023, Sunac China Holdings Limited sought creditor protection
in the United States under Chapter 15 of the Bankruptcy Code
(Bankr. S.D.N.Y. Case No. 23-11505) on Sept. 19.
U.S. Bankruptcy Judge Philip Bentley presides over the Chapter 15
proceedings.
Sidley Austin is the Legal Counsel to China Sunac.
XJ INTERNATIONAL: HK Court Dismisses Case to Wind Up Company
------------------------------------------------------------
Bloomberg News reports that a Hong Kong court on Aug. 28 dismissed
a petition to liquidate XJ International Holdings Co., dealing a
blow to a group of bondholders that includes some of Asia's most
prominent hedge funds.
Bloomberg relates that Deputy High Court Judge Doreen Le Pichon
threw out the wind-up petition on technical grounds, saying that XJ
had shown there is a dispute that a put option hadn't been properly
exercised, according to a judgment dated Aug. 28 posted on the
judiciary's website.
According to Bloomberg, the ruling is a major setback for creditors
who previously argued that XJ's default could set a precedent for
other Chinese issuers to refuse to repay debt even if they have the
resources to do so.
The wind-up petition was filed in March on behalf of the group of
creditors, which includes Hong Kong-based Oasis Management Co., PAG
and Enhanced Investment Products Ltd, Bloomberg notes.
An XJ unit issued convertible bonds in 2021 guaranteed by the
company, with a due date in 2026. The firm defaulted on $315
million of convertible notes in March, after it failed to make an
optional redemption payment.
In a statement, an ad hoc group representing international
creditors said the decision may cast doubt on the validity of a
myriad of other corporate actions and could lead to valid put
instructions being disregarded, Bloomberg relays.
It said in February that it had received notice from some
bondholders that they planned to exercise their put options in
March, and warned that it "may have difficulty in fully redeeming"
the bonds.
XJ International Holdings Co., Ltd., an investment holding company,
engages in the provision of higher education and secondary
vocational education services in China and Malaysia. The company
provides technician education and training, self-study examination,
adult education, technical management and consultancy, and other
training services, as well as sells textbooks and dormitory
bedding. It owns and operates schools, including colleges and
universities, junior colleges, and technician colleges. The company
was formerly known as Hope Education Group Co., Ltd. and changed
its name to XJ International Holdings Co., Ltd. in January 2024. XJ
International Holdings Co., Ltd. is a subsidiary of Hope Education
Investment Limited.
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AAI KRUPA: ICRA Keeps D Debt Ratings in Not Cooperating Category
----------------------------------------------------------------
ICRA has kept the long-term ratings of Aai Krupa Cotton Industries
(AKCI) in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term 1.70 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Long-term 5.00 [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 AKCI, ICRA has been trying to seek information from the entity
so as to monitor its performance. Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
Established as a partnership firm in 2013, Aai Krupa Cotton
Industries (AKCI) is engaged in cotton ginning and pressing
operations. The promoters of the firm have moderate experience in
cotton ginning and pressing industry by virtue of their
earlier association with other firms as partners or as key
operating personnel in past. The firm commenced its commercial
operations from November 2013 at its manufacturing unit at Tankara,
Dist. Rajkot with 20 ginning machines and 1 pressing
machine. It has an installed processing capacity of ~37 MT raw
cotton daily (assuming 24 hours of operation per day).
AHLADA ENGINEERS: Ind-Ra Cuts Bank Loan Rating to C
---------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Ahlada Engineers
Limited's (AEL) bank facility ratings to long-term 'IND C' from
'IND BBB-' and short-term 'IND A4' from 'IND A3', as follows:
-- INR210 mil. Fund-based working capital limit downgraded with
IND C/IND A4 rating;
-- INR150 mil. Non-fund-based working capital limits downgraded
with IND A4 rating; and
-- INR10 mil. Term loan due on March 31, 2025 downgraded with IND
C rating.
Detailed Rationale of the Rating Action
The downgrade reflects AEL's ongoing delays in servicing of a
fund-based facility (not rated by Ind-Ra) for more than 30 days as
of August 23, 2024, on account of its tight liquidity position,
indicating a default. Also, Ind-Ra has received confirmation that
there has been a delay in the servicing of interest component of
its rated fund-based working capital limit, although there is no
default as it is for a period less than 30 days.
Detailed Description of Key Rating Drivers
Poor Liquidity Position: AEL has delayed the servicing of a
fund-based facility not rated by Ind-Ra for more than 30 days as of
August 23, 2024. Separately, there has been a delay in interest
servicing of Ind-Ra rated fund-based limits for a period less than
30 days. The reason for such delay is said to be the
non-realization of receivables from the government projects within
the stipulated time.
Established Manufacturing Capacity: AEL manufactures steel doors
and windows (steel frame) at its two manufacturing units. It also
owns an assembling unit and a stock yard. The facilities
admeasuring an area of 27,153 square yards on the outskirts of
Hyderabad. The company's capacity utilization increased to 83% for
both steel doors and windows in FY24 (FY23: 42% for steel doors;
25% for steel frame windows). It has adequate capacity to handle
large orders as it can operate maximum up to three shifts.
Liquidity
Poor: The company has delayed debt servicing because of the
non-payment from the government projects within the stipulated
time. Hence, the liquidity is poor.
Rating Sensitivities
Negative: Delays in servicing of debt facilities rated by Ind-Ra,
will lead to a negative rating action.
Positive: An improvement in the liquidity profile and/or
regularization of payments of fund-based facilities while
maintaining the scale of operations and credit metrics, will lead
to a positive rating action.
About the Company
AEL was incorporated in 2005 as a private limited company. It was
reconstituted as a public limited company in January 2018. The
company is listed on the main board of the National Stock Exchange
of India Limited. The company manufactures steel doors and windows
for the residential and commercial segment, and green chalk boards,
dual desks and reverse osmosis plants for government-run schools in
Andhra Pradesh. The daily activities of the company are managed by
its managing director Chedepudi Suresh Mohan Reddy, along with its
key managerial personnel.
AKSHAR GINNING: ICRA Keeps B+ Debt Rating in Not Cooperating
------------------------------------------------------------
ICRA has kept the Long-Term rating of Akshar Ginning And Pressing
Industries (AGPI) in the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA]B+(Stable) ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 8.00 [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 AGPI, 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 2006, Akshar Ginning And Pressing Industries (AGPI)
is a partnership firm engaged in ginning and pressing of raw cotton
to produce cotton bales and cottonseeds. The firm also crushes
cottonseeds to produce cottonseed oil. The manufacturing facility,
located at Una, Gujarat, is equipped with 24 ginning machines and
one pressing machine, with a production capacity of 240 finished
bales per day. The firm also has three expellers with a processing
capacity of 15 tonnes of cotton seed per day. AGPI is managed by
six partners, namely, Mr. Shambhu B. Zalavadiya, Mr. Himmat B.
Zalavadiya, Mr. Chunilal B. Zalavadiya, Mr. Pareshkumar H.
Zalavadiya, Mr. Jaydipkumar C. Zalavadiya and Mr. Ashvinkumar V.
Barvaliya, who are all family members and relatives.
ALUMINIUM INDIA: ICRA Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has kept the Long-Term and Short-Term ratings of Aluminium
India (AI) 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/ 2.00 [ICRA]D/[ICRA]D; ISSUER NOT
Short Term COOPERATING; Rating Continues to
Unallocated remain under 'Issuer Not
Limits Cooperating' Category
As part of its process and in accordance with its rating agreement
with AI, 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.
Aluminium India (AI), set up in 1965 as a proprietorship firm by
Mr. Chiranji Vyas, to primarily trade aluminium in Hyderabad
(Telangana). The firm was reconstituted as a partnership firm in
1975, with Mr. Chiranji Vyas, Mr. Niranjan Vyas, Mr. Suresh
Vyas and Mr. Baiju Vyas as its partners. In the year 1995, AI
diversified into trading of copper as well. The firm majorly
procures the material from Hindalco Industries Limited (HIL). The
day to day operations of the firm are looked after by Mr. Suresh
Vyas.
BABINA HEALTHCARE: CRISIL Reaffirms B+ Rating on INR15cr LT Loan
----------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable' rating on the
long-term bank facility of Babina Healthcare Pvt Ltd (BHPL; a part
of the Babina group).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 15 CRISIL B+/Stable (Reaffirmed)
The rating continues to reflect the modest scale of operations and
exposure to political unrest in Manipur. These weaknesses are
partially offset by established market position of the group, aided
by the extensive experience of the promoter in the healthcare and
hospitality industries, and moderate financial risk profile.
Analytical approach
CRISIL Ratings has combined the business and financial risk
profiles of BHPL, Babina Hospitalities Pvt Ltd (BHOPL) and Babina
Healthcare and Hospitality Industries Pvt Ltd (BHHPL). This is
because all these entities, collectively referred to as the Babina
group, have common owners and management and cash flow
fungibility.
Key rating drivers and detailed description
Weaknesses:
* Modest scale of operations: Revenue was average at INR71.6 crore
in fiscal 2024. Improvement in turnover, though expected, will
depend on occupancy. Modest hotel occupancy -- less than 60% in
fiscal 2024 -- will impact operating efficiency.
* Exposure to political unrest in Manipur: Most hotels of the group
are located in Imphal (Manipur). The political unrest in Manipur
has impacted tourism footfall, which led to lower business from the
hospitality segment. However, positive cash flow is projected for
the medium term, with the new hospital also generating revenue.
Strengths:
* Extensive experience of the promoter: The three-decade-long
experience of the promoter, the established market position of the
group and longstanding relationship with customers will continue to
support the business.
* Moderate financial risk profile: The financial risk profile of
the group has been stable over the past three fiscals, supported by
moderate gearing and comfortable debt protection metrics. Gearing
was healthy at 0.76 time as on March 31, 2024. The capital
structure remains comfortable, despite the large, debt-funded
capital expenditure (capex) undertaken during fiscals 2023 and
2024. The capex was executed in a timely manner and commercial
operations of the hospital began from the first week of August
2024. Debt protection metrics were strong, with interest coverage
ratio of 5.52 times and net cash accrual to total debt ratio of
0.18 time in fiscal 2024.
Liquidity: Stretched
Liquidity should remain supported by the surplus available in cash
accrual and bank lines. Bank limit utilisation was around 89%
during the 13 months through March 2024. Cash accrual is projected
at INR11-18 crore per annum, against yearly debt obligation of
INR7-12 crore over the medium term. Current ratio stood robust at
3.57 times on March 31, 2024. The promoter is likely to extend
need-based funds (equity and unsecured loans) to support
operations.
Outlook: Stable
The Babina group will continue to benefit from the extensive
experience of the promoter.
Rating sensitivity factors
Upward factors:
* Increase in operating income, resulting in net cash accrual more
than INR18 crore
* Successful scale-up of operations of BHPL
Downward factors:
* Decrease in net cash accrual to debt obligation cushion
* Decline in scale or profitability, leading to net cash accrual
less than INR9 crore
Incorporated in 2007 and promoted by Dr Th Dhabali Singh, BHHPL
runs a diagnostic centre and three hotels in Imphal. The company is
setting up a 200-bed multispecialty hospital in Imphal.
Established in 2012, BHOPL operates a four-star hotel, The Classic
Grande, in Imphal.
BHPL, incorporated in 2017, operates a cancer super specialty
hospital as a joint venture with American Oncology Institute, in
Imphal.
BEVCON WAYORS: ICRA Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has kept the long-term and short-term ratings of Bevcon Wayors
Private Limited (BWPL) in the 'Issuer Not Cooperating' category.
The rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING/[ICRA]D;
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term 11.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term 2.66 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Short-term 75.00 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Rating continues to remain under
Others 'Issuer Not Cooperating'
Category
Long-term/ 8.34 [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 BWPL, 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 noncooperative. 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.
Bevcon Wayors Private Limited (BWPL) was incorporated in October
31, 1994 and is engaged in manufacturing of Bulk Material Handling
Products as well as providing EPC/turnkey solutions of Balance of
Plant (BOP) requirements of customers across diverse sectors such
as power, steel, cement, mining, sugar, ports, paper, pharma, FMCG,
etc. The company has its manufacturing unit in Hyderabad. The
company is currently headed by Mr. Y. Srinivas Reddy, who is the
Managing Director of the company and has nearly 25 years of
experience in material handling products line of business
CHIDANAND BASAPRABHU: Ind-Ra Affirms BB Bank Loan Rating
--------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Chidanand
Basaprabhu Kore Sahakari Sakkare Karakhane Niyamit's (CBKSSKN) bank
facilities' ratings as follows:
-- INR2.550 bil. Fund-based working capital facilities affirmed
with IND BB/Stable/IND A4+ rating; and
-- INR1,604.46 bil. (reduced from INR1,703.9 bil.) Term loan due
on March 2032 affirmed with IND BB/Stable rating.
Detailed Rationale of the Rating Action
The ratings reflect significant deterioration in CBKSSKN's revenue,
due to a fall in the sugar volumes, and its weak credit metrics
owing to it availing additional term loans for the capex in FY24.
The ratings are also constrained by the regulatory risks in the
sugar industry and government regulations on ethanol production and
B-heavy molasses.
The ratings are, however, supported by CBKSSKN's long operational
track record and Ind-Ra's expectation of significant growth in the
scale of operations and the operating profitability in the medium
term, driven by its high-margin ethanol segment which became
operational in March 2024. The operational synergies from the
proposed capex to increase ethanol capacity are likely to improve
the entity's EBITDA margin significantly and will diversify its
revenue FY25 onwards.
Detailed Description of Key Rating Drivers
Revenue Decline in FY24 despite Higher Sugar Prices: As per the
provisional numbers of FY24, CBKSSKN's revenue declined
significantly in FY24 to INR4,179.8 million (FY23: INR6,687.56
million) due to a fall in its revenue from the sugar segment after
the company deciding to hold up sugar stocks in anticipation of a
further rise in prices. The company's sugar volumes reduced to
83,240 metric tons (MT) in FY24 (FY23: 175,211 MT), lower than the
volume allocated to the entity by monthly release orders of the
government. The company's revenue from the sugar segment fell to
INR2,971.20 million in FY24 (FY23: INR5,325.50 million), despite
the increase in domestic prices, with the entity's average
realization from sugar sales rising to INR35,617 per MT (INR33,745
per MT). Its sugar inventory rose to 72,136.4 MT in FY24 (FY23:
60,308.8MT) with the inventory cycle rising to 359 days (105 days)
leading to an increase in its working capital requirement, on
account of the entity valuing the closing inventory at market
prices.
The EBITDA declined to INR690 million in FY24 (FY23: INR630.01
million), with the EBITDA margin rising to 16.53% (9.42%)
particularly due to lower cost of goods sold on account of higher
closing inventory valuation by the entity. Ind-Ra expects the
EBITDA margin to moderate in the near to medium term as the margins
would be supported by the distillery operations of producing
ethanol through sugarcane juice.
High Net Leverage in FY24 due to Debt-funded Capex; Likely to
Moderate in Medium Term: CBKSSKN's overall debt levels rose
significantly to INR5,617 million in FY24 (FY23: INR3,395.13
million) with the short-term debt rising to INR2,181.12 million
(INR1,585.5 million) following its increased working capital
requirement. The entity also availed additional term loans of
INR1,365 million in FY24, out of the total sanctioned loans of
INR1,468 million, to partly fund its INR1,800 million capex for
enhancing the distillery operations to 200 kiloliters per day
(KLPD) from 30KLPD. The capex would enable the entity to commence
production of ethanol through sugarcane juice. BSSKL's net leverage
(Ind-Ra adjusted net debt/operating EBITDAR) rose to 8.03x in FY24
(FY23: 5.34x), due to the decline in the scale of operations.
However, its gross interest coverage (operating EBITDA/gross
interest expense) marginally declined to 1.81x in FY24 (FY23:
1.84x), despite a rise in its interest costs to INR381.31 million
(INR342.18 million). Ind-Ra expects the credit metrics to moderate
in the medium term, due to the likely rise in CBKSSKN's scale of
operations and operating profitability following the commissioning
of the high-margin distillery segment.
Susceptibility of Business to Regulatory Risks in Sugar Industry:
The sugar industry is regulated and vulnerable to government
policies as it is classified as an essential commodity. Besides
setting quotas for the domestic sale of sugar and restricting sugar
exports, the government has implemented various regulations such as
fixing the raw material prices in the form of fair and remunerative
prices as well as implementing restrictions on the diversion of
sugar syrup and B-heavy molasses in the ensuing sugar season
(2024-25). All these factors impact the production and sales of
sugar and ethanol, posing significant uncertainty risks to
CBKSSKN's scale of operations.
Integrated Nature of Operations; Established Operational Track
Record: CBKSSKN has an operational track record of more than three
decades in the sugar industry with established relationships with
farmers in the region. The entity benefits from the synergies of
the integrated nature of its operations. The sugarcane juice syrup
as well as the B-heavy molasses are the raw materials for the
distillery unit that would be produced in-house by the sugar mill.
This will enable the entity to maximize its profitability in the
distillery segment and also lessen its heavy working capital
requirement, as the sugarcane juice diverted to the distillery will
lead to a reduction in the production, and thus, the inventory of
sugar. Furthermore, the bagasse required as raw material for the
entity's cogeneration unit is also available in-house after the
crushing of sugarcane.
Synergies from Distillery Likely to Improve Scale of Operations and
Profitability in Medium Term: CBKSSKN has expanded its distillery
operations with an ethanol production capacity of to 200 KLPD
which would be operational in FY25. The forward integration is
likely to improve the entity's scale of operations and overall
profitability as it ventures into the high-margin ethanol segment
for producing ethanol through sugarcane juice. The agency expects
the EBITDA margin to moderate in the medium term; however, the
margins will be supported by increased contribution of ethanol,
which would contribute around 50% to the overall revenue from FY25.
The extent of the rise in the scale of operations and profitability
ultimately depends upon the government's decision regarding the
restrictions on the diversion of syrup and B-heavy molasses.
Nevertheless, Ind-Ra expects the operational synergies from ethanol
sales to improve the entity's scale of operations and profitability
in the medium term.
Free Cash Flow Likely to Improve in Medium Term: CBKSSKN's free
cash flow turned negative INR2,763.43 million in FY24 (FY23:
positive INR510.93 million) due to the capex of INR 1,397.87
million (INR265.35 million) incurred for the distillery project.
The cash flow from operations also turned to negative INR1,365.56
million in FY24 (FY23: positive INR776.28 million), due to the
increase in working capital requirement following the increased
inventory levels. Ind-Ra expects the free cash flow to increase in
FY25 due to the expected increase in the internal accruals led by
the operational synergies of the ethanol segment and the expected
release of inventory due to lower production on account of the
diversion of B-heavy molasses for ethanol production.
Liquidity
Stretched: CBKSSKN's current ratio remained almost stable at 1.60x
in FY24 (FY23: 1.62x) and Ind-Ra expects the ratio to largely
remain same in the near to medium term. The average maximum
utilization of the fund-based limits for the 12 months ended April
2024 was 37.84%. The net cash conversion cycle increased to 431
days in FY24 (FY23: 155 days), due to the rise in the inventory
levels. However, Ind-Ra expects the net working capital cycle to
moderate in FY25 and in the medium term due to a fall in the
inventory levels. CBKSSKN had unencumbered cash and cash
equivalents of INR71.18 million at FYE24 (FYE23: INR 32.68
million), as per the unaudited information provided by the
management. It has repayment obligations of INR172.9 million and
INR324.4 million in FY25 and FY26, respectively, which are likely
to be met through internal accruals.
Rating Sensitivities
Negative: Substantial time and cost overrun in the proposed capex
or substantial deterioration in liquidity or the profitability will
result in a negative rating action.
Positive: The timely commencement of the proposed capex and a
substantial improvement in liquidity and the profitability will be
positive for the ratings.
About the Company
CBKSSKN has an integrated sugar plant with a cane crushing,
distillery and power generation capacity of 10,000 tons of cane
crushed/day, 30,000 liter/day and 28.7MW, respectively, in Chikodi,
Karnataka.
HAL-KO-INFRA PROJECTS: CRISIL Ups Rating on INR2.25cr Loan to B
---------------------------------------------------------------
CRISIL Ratings has upgraded its rating on the long term bank
facilities of Hal-ko-Infra Projects (HI) to 'CRISIL B/Stable' from
'CRISIL B-/Stable' and reaffirmed its 'CRISIL A4' rating on the
short-term bank facilities.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 2 CRISIL A4 (Reaffirmed)
Cash Credit 2.25 CRISIL B/Stable (Upgraded
from 'CRISIL B-/Stable')
Proposed Bank
Guarantee 1.51 CRISIL A4 (Reaffirmed)
Working Capital
Term Loan 0.49 CRISIL B/Stable (Upgraded
from 'CRISIL B-/Stable')
The upgrade reflects a significant improvement in the operating
margins and orders in hand.
For fiscal 2024, the company had operating margins of 13.27% as
compared to 9.83% in fiscal 2023 backed by completing orders with
higher margins and control over operating expenses. Also, the firm
has adequate net cash accruals with no major repayment obligations
over the medium term, which provides extra cushion to the
liquidity., Around 2.50 times orders in hand provided the revenue
visibility over the medium term.
The ratings continue to reflect subdued business performance and
geographical concentration in the highly fragmented construction
industry, and below average financial risk profile. These
weaknesses are partially offset by the company's longstanding
presence in the civil construction business.
Analytical Approach
CRISIL Ratings has treated unsecured loan (from friends and
relatives) of INR1.61 crore as on March 31, 2024, as debt as
expected to be repaid over medium term.
Key Rating Drivers & Detailed Description
Weaknesses:
* Decline in scale of operations and significant geographical
concentration in the highly fragmented construction industry:
Company remains exposed to changes in policies related to civil
infrastructure, socio-economic and political conditions. Due to low
turnover, the company is executing the projects as a subcontractor
since they are not able to directly bid for the government
projects. Moreover, the contracts are undertaken mainly in
Maharashtra and Karnataka regions, leading to significant exposure
to geographical concentration risk. The company has an outstanding
order book of INR55 crore as of July 2024. Timely execution of
projects and sustenance of operating margin in the near term
remains to be seen.
* Below average financial risk profile: Firm has modest net worth
of INR4.24 crore as on March 31, 2024.The TOL/ANW ratio was at 2.59
times as on March 31, 2024. Leverage levels are expected to remain
high, constraining the financial risk profile.
Strength:
* Partners' extensive experience in the civil construction
business: Partners- Mr. Subhash Kotekar and Mr. Amol Halurkar have
experience of over two decades in the construction industry. This
has given them an understanding of the dynamics of the market and
enabled them to establish relationships with suppliers and
customers. Also, their experience and understanding of work makes
them eligible for more orders.
Liquidity: Stretched
The liquidity of the company is stretched with bank limit
utilization averaging around 96% for the last 12 months ended June
2024. Net Cash accruals are expected to be over INR1.9 crore which
is sufficient against term debt obligation of INR9-10 lakhs in
fiscal year 2025. In addition, it will act as cushion to the
liquidity of the company. Current ratio is healthy at 1.52 times on
March 31, 2024. The firm has no major debt funded capex plans over
medium term.
Outlook: Stable
CRISIL Ratings believes HI will benefit from its partners'
extensive industry experience and its moderate order book.
Rating sensitivity factors
Upward factors:
* Sustainable improvement in the business risk profile, where net
cash accrual is above INR2.5 crore
* Improvement of financial risk profile and improved working
capital cycle leading to better liquidity position
Downward factors:
* Lower than expected revenue and or operating margin resulting in
accruals below INR1 crore
* Stretch in working capital cycle or higher than expected debt
funded capex resulting to weakening of financial risk profile,
particularly liquidity
About the Group
Established in 2008, and based in Mumbai, Hal-ko Infrastructures
(HI) is engaged in construction work. The firm is engaged in
undertaking all types of construction projects, such as
construction of roads and bridges, schools, dam, water supply
projects, water treatment plant project and others
HASIMARA INDUSTRIES: ICRA Keeps B+ Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has reaffirmed and continued to keep the bank loan ratings of
Hasimara Industries Limited to 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- 10.25 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 2.35 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Short Term- 1.50 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
Bank Guarantee to remain under 'Issuer Not
Cooperating' category
The rating is based on limited cooperation from the entity since
the time it was last rated in May 2023. As part of its process and
in accordance with its rating agreement with, ICRA has been trying
to seek information from the entity so as to monitor its
performance and 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, a rating view has been
taken on the entity based on the best available information.
Hasimara Industries Limited (HIL), incorporated in 1904, owns a tea
garden in the Alipurduar district of West Bengal. The tea estate is
spread over an area of around 1,061 hectares, of which around 894
hectares is under tea cultivation. The company produces CTC variety
of black tea, which it sells in the domestic market through auction
and private sales. It is not involved in bought leaf operations.
KAKATIYA INDUSTRIES: Ind-Ra Affirms BB+ Rating, Outlook Stable
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Kakatiya
Industries Private Limited's (KIPL) bank facilities as follows:
-- INR8.8 mil. Fund-based working capital limits affirmed with
IND BB+/Stable/IND A4+ rating; and
-- INR651.3 mil. Term loan due on April 30, 2043 8% coupon
rate affirmed with IND BB+/Stable rating.
Analytical Approach
Ind-Ra has taken a fully consolidated view of KIPL and its group
company, Nagarjuna Cerachem Private Limited (NCPL), to arrive at
the ratings as the entities are in the same group and have a common
business profile. Furthermore, the companies have initiated a
merger process, which is likely to be completed by 2025.
Post-merger, NCPL will cease to exist.
Detailed Rationale of the Rating Action
The ratings reflect KIPL's modest credit metrics and EBITDA margins
and stretched liquidity. However, the ratings are supported by the
company's medium scale of operations and the promoters' long track
record in the industry.
Detailed Description of Key Rating Drivers
Stretched Liquidity: KIPL does not have any capital market exposure
and relies on banks and financial institutions to meet its funding
requirements. The working capital cycle of the company elongated to
136 days in FY24 (FY23: 13 days), mainly on account of the
increased inventory days of 131 (66), predominantly in the form of
finished goods waiting for customers delivery schedule and a
reduction in the creditor days to 35 days (88 days).
Modest Credit Metrics: The consolidated credit metrics remained
modest, with the gross interest coverage (operating EBITDA/gross
interest expense) improving to 2.26x in FY24 (FY23: 1.83x; FY22:
15.97x) and the net financial leverage (adjusted net debt/operating
EBITDA) reducing to 4.80x (4.84x; 25.06x), due to the increase in
the absolute EBITDA. In FY25, Ind Ra expects the credit metrics to
improve in the absence of any debt-funded capex and the schedule
repayment of its term loans.
Modest EBITDA Margins: KIPL's consolidated EBITDA margins increased
to 47.24% in FY24 (FY23:43.7 %; FY22: 25.17%), on account of the
successful operation of its high-margin hydro plant. The return on
capital employed slightly deteriorated to 11.8% in FY24 (FY23:
12.5%). Ind-Ra expects the hydro division's EBITDA margin to remain
stable, supported by low operating expenses, while that of the
chemical division to be volatile in the near to medium term on
account of price fluctuations in the chemical industry. The
company's FY24 numbers are provisional in nature.
Long-term PPA with Customer: KIPL has signed a 35-year power
purchase agreement (PPA) with GRIDCO Limited (debt rated at 'IND
BBB+'/Stable) for the supply of the 100% power produced at a tariff
of INR5.08/kWh. The project has an installed capacity of 9MW and a
gross power generation potential of 35.5 million units, helping the
company have stable revenue. Also, the company has long-term ties
with customers that have healthy credit profile in the chemical
division, ensuring time payments.
Promoters Experience: However, the ratings are supported by the
promoter’s more than four decades of experience in the chemical
industry, leading to established relationships with the customers
and suppliers.
Medium Scale of Operations: KIPL's consolidated revenue declined
INR351.91 million in FY24 (FY23: INR359.16 million; FY22:
INR100.28million) on account of a decline in the realization in the
chemical division. The chemical segment's contribution to the total
revenue reduced to INR79.01 million in FY24 (FY23: INR127.16
million), due to lower demand in ammonium nitrate to 1,268 metric
tons (MT) in FY24 (FY23: 1,747MT). Also, the sales realization
reduced to INR49,850/MT in FY24 (FY23: INR58,230/MT) for ammonium
nitrate and INR30,273/MT (INR56,266/MT) for sodium nitrate leading
to the decline in the revenue. The scale of operations remained
medium. The consolidated EBITDA increased to INR166.23 million in
FY24 (FY23: INR156.94 million). The plant load factor stood at 42%
in FY24 (FY23: 29%) in the trailing 12 months ended March 2024,
leading to the increase in the revenue from the hydro power
segment.
Liquidity
Stretched: KIPL's average maximum utilization of the fund-based
working capital limits stood at 92.67% for the 12 months ended June
2024. The company had cash and cash equivalents of INR2.25 million
at FYE24 (FYE23: INR21.88million). It has repayment obligations of
INR24.65million in FY25 and INR25.58 million in FY26 which are
likely to be repaid through internal accruals. The cash flow from
operations increased to INR28.10 million in FY24 (FY23:INR1.05
million), on account of favorable changes in the working capital
cycle. The free cash flow turned positive at INR11.84 million in
FY24 (FY23: negative INR139.46 million), due to reduced capex of
INR16.26 million for the hydro power project (FY23: INR 140.51
million).
Rating Sensitivities
Negative: A decline in the scale of operations, leading to
deterioration in the overall credit metrics and/or a further
pressure on the liquidity position, could lead to a negative rating
action.
Positive: An increase in the scale of operations, along with an
improvement in the overall credit metrics with the net leverage
reducing below 3.5x, the successful merger with NCPL and an
improvement in the liquidity profile, all on a sustained basis,
could lead to a positive rating action.
Any Other Information
Likely Merger with NCPL: Ind-Ra has consolidated the financials of
KIPL and NCPL from FY23, due to the likely merger of the entities.
As per the management, the merger will have a retrospective effect
from 1 April 2022. NCPL is into chemical product manufacturing and
has similar nature of operations of KIPL. Hence, both the
managements have decided to merge them, leading to synergy in their
business as well as tax benefits. Earlier, the management had
decided to demerge its hydro and chemical division from the
existing company. However, in FY24, the management decided to merge
NCPL and KIPL first and following that it wants to demerge its
entire chemical division from the hydro power division. However,
the effective timeline for the demerger is still unknown. Ind-Ra
believes the impact of the merger to be credit neutral.
About the Company
Hyderabad-based KIPL (formerly known as Kakatiya Chemicals Private
Limited) was incorporated on July 31, 1979. It is the subsidiary of
NCL Holdings (A&S) Ltd, which is an investment company. The company
has two divisions - the ammonium nitrate and sodium nitrate
division and the hydroelectric power division.
KAYGAON PAPER: Ind-Ra Affirms BB+ Loan Rating, Outlook Stable
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Kaygaon Paper
Mills Private Limited's (KPMPL) bank facilities' ratings as
follows:
-- INR185 mil. Cash credit affirmed with IND BB+/Stable rating;
-- INR17.5 mil. Bank guarantee affirmed with IND A4+ rating; and
-- INR216.7 mil. Term loan due on March 31, 2029 affirmed with
IND BB+/Stable rating.
Detailed Rationale of the Rating Action
The affirmation reflects KPMPL's modest EBITDA margin, average
credit metrics and continued small scale of operations in FY24. In
the medium term, Ind-Ra expects the revenue to improve based on an
expansion of its customer base through existing and new products.
The EBITDA margins are also likely to improve in the medium term
due to the likely benefit in the fuel cost from the operation of
KPMPL's co-gen plant. Ind-Ra expects the credit metrics to improve
during the same period, due to the improvement in the scale of
operations. The ratings are supported by continued promoters'
experience of nearly four decades in the paper industry.
Detailed Description of Key Rating Drivers
Continued Small Scale of Operations amid Intense Competition:
KPMPL's revenue declined 29.26% yoy to INR1,175.58 million in FY24
(FY23: INR1,661.84 million) on account of reduced sales
realizations of INR27,624/MT (INR34,559/MT) and a decline in the
sales volume to 43,766 metric tons (47,524MT). The decline was
mainly due to a shrinkage in the export demand, following
supply-chain disruptions amid the Red Sea crisis, leading to an
increased supply in the domestic market and a weak demand. KPMPL's
share of exports declined to 17.86% of the total revenue in FY24
(FY23: 26.14%). The scale of operations remains small. KPMPL has
booked a revenue of INR540 million during 4MFY25. Ind-Ra expects
the scale of operations to remain small over the near-to-medium
term on account of intense competition from domestic players;
nevertheless, it is likely to improve in FY25 based on the
expansion of customer base in new states such as Telangana, Goa and
Madhya Pradesh through existing and new products. FY24 numbers are
provisional.
Modest EBITDA Margins: The EBITDA margin improved to 4.3% in FY24
(FY23: 0.35%) on account of the stabilization of raw material
prices. The return on capital employed was negative 0.9% in FY24
(FY23: 7.2%). Ind-Ra expects the EBITDA margin to improve over the
medium term owing to a further moderation in the prices of raw
materials as well as the savings in power cost due to the operation
of KPMPL's co-gen plant. The co-generation plant, which is likely
to start operations from 3QFY25, will cut down KPMPL's power cost
by 25%-30%, which will be reflected in the margins FY25 onwards.
Average Credit Metrics: KPMPL's total debt increased to INR358.31
million in FY24 (FY23: INR294.94 million), mainly to fund working
capital requirements. Despite this, the net leverage (adjusted net
debt/operating EBITDAR) improved to 7.08x in FY24 (FY23: 46.57x),
due to an increase in the EBITDA. The gross interest coverage
(operating EBITDA/gross interest expense) improved to 2.42x in FY24
(FY23: 0.29x) due to the capitalization of interest on the ongoing
capex. In FY25, Ind-Ra expects the credit metrics to improve
further in FY25 due to the increase in the EBITDA, along with a
decline in the total debt on the back of the scheduled repayment of
term loans.
Cyclical Industry: The paper industry is cyclical in nature and
incumbents are exposed to volatility in raw material prices, as
well as the threat of imports, which could prevent companies from
passing on the increase in raw material prices. In addition, lumpy
capacity additions that are not commensurate with demand growth
could exert an upward pressure on raw material prices and a
downward pressure on finished product prices, leading to a
weakening of the profit margins.
Stretched Liquidity: The cash flow from operations declined to
INR69.15 million in FY24 (FY23: INR226.92 million) due to
unfavorable changes in the working capital. The free cash flow
turned negative at INR87.23 million in FY24 (FY23: INR120.32
million) due to the capex of INR156.38 million undertaken by the
company during the year. The net working capital cycle elongated to
70 days in FY24 (FY23: 42 days) as the inventory days increased to
62 (32) and the debtor days to 33 (25). KPMPL does not have any
capital market exposure and relies on banks and financial
institutions to meet its funding requirements.
Promoter Experience: The ratings are supported by the promoters'
experience of nearly four decades in the paper industry, which has
enabled the company to establish strong relationships with
customers as well as suppliers.
Established Network of Dealers: Over the years, the company has
established its presence as a kraft paper supplier and has a wide
dealership network in the industry which aids in fast order
execution.
Liquidity
Stretched: KPMPL's average maximum utilization of the fund-based
limits was 77.48% and that of the non-fund-based limits was 96.35%
during the 12 months ended June 2024. The cash and cash equivalents
stood at INR1 million at FYE24 (FYE23: INR24.85 million). The
company has debt repayment obligations of INR55.6 million and
INR60.7 million in FY25 and FY26, respectively.
Rating Sensitivities
Positive: A significant increase in the operating profitability
post capex completion, resulting in comfortable credit metrics with
the leverage reducing below 3x and improvement in liquidity, all on
a sustained basis, will be positive for the ratings.
Negative: Any further decline in the revenue or the EBITDA margins,
resulting in deterioration in the credit metrics and the liquidity
position, all on a sustained basis, will be negative for the
ratings.
About the Company
Set up in 1989 as a private limited company by Omprakash Rathi,
KPMPL commenced commercial production in 1992. Its main business is
manufacturing of kraft paper. The company's products are utilized
in the packaging industry, especially for making corrugated boxes,
which are used extensively for the shipment of goods in the
e-commerce industry. It has two production lines with deckle size
of 244cm and 335cm to cover the requirements of all types of
corrugation paper. The company manufactures kraft paper of various
grades viz. 16BF, 18BF, 20BF, 22BF and 24BF, and sell its products
through a well-established dealer network. The company also exports
to Singapore, China, the US and Middle-Eastern countries.
LEAPFROG ENGINEERING: ICRA Withdraws D Rating on INR10cr Loans
--------------------------------------------------------------
ICRA has reaffirmed and withdrawn the ratings assigned to the bank
facilities of Leapfrog Engineering Services Limited (LESL) at the
request of the company and based on the No Objection Certificate
received from its banker and in accordance with ICRA's policy on
withdrawal of credit ratings.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 6.00 [ICRA]D; reaffirmed and withdrawn
Fund based
Cash Credit
Long-term– 4.00 [ICRA]D; reaffirmed and
withdrawn
non-fund based-
Others
The rating action factors in the delay by LESL in debt servicing
during the current fiscal on its term loan. The delays are
attributable to stretched working capital cycle, amid increasing
scale of operations and limited liquidity cushion. Further, delay
in payment from customers resulted in cash flow mismatch and high
utilisation of working capital limits (average utilisation 98% for
twelve months ending June 2024). The rating is also constrained by
its moderate work order book with outstanding work order of INR107
crore as of June 2024 (0.7 times of FY2024 revenue) providing weak
revenue visibility. The company is also exposed to sizeable
contingent liabilities in the form of bank guarantees, mainly for
contractual performance, mobilisation advances and retention money
of INR14 crore as on June 30, 2024. ICRA takes note of the
longstanding experience of the promoter in the construction sector.
The company's ability to materially improve its cash conversion
cycle and enhance its working capital lines remains crucial to
improve its liquidity position going forward.
Key rating drivers and their description
Credit strengths
* Long standing track record in engineering, procurement and
construction (EPC) segment: LESL has a long track record of more
than 20 years in the EPC business. Over the years, LESL has
developed the required expertise and executed projects in
electrical, instrumentation and automation systems.
Credit challenges
* Modest scale of operations and stretched working capital cycleL:
LESL's operating income, despite healthy growth of ~51% to INR158
crore in FY2024, continues to remain modest. With increasing scale
of operations, the company's working capital requirements have
increased significantly. Apart from this, there has been sizeable
delays from few counterparties leading to increased working capital
requirements. Also, as on July 31, 2024, LESL has an outstanding
receivable of INR17.5 crore, where INR16.2 crore worth of
receivables are outstanding for more than 6 months.
* Delays in debt servicing due to stretched liquidity: As on March
31, 2024, LESL reported a modest net worth of INR22 crore.
Moreover, the liquidity position remains weak, given the stretched
working capital cycle. It has limited cushion in sanctioned working
capital lines with average utilisation ~98% for twelve months
ending in June 2024.
LESL was incorporated by Mr. Prabhav N Rao in 2005, in Bangalore,
Karnataka. It is an EPC player primarily involved in providing
solutions in the field of electrical, instrumentation, industrial
automation, fire safety, and building automation systems. It has
presence in around 8 countries, i.e., India, Dubai, Kuwait,
Bahrain, Kurdistan, Bangladesh, Nigeria, Canada and provides
solution across various verticals such as oil and gas, food and
beverage, fertilisers, refineries, pharma, metals, hotels and
institutions, etc.
NATURAL SUGAR: ICRA Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has kept the Long-Term ratings for the Bank Facility of
Natural Sugar and Allied Industries Limited (NSAIL) in the 'Issuer
Not Cooperating' category. The ratings are denoted as "[ICRA]D;
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term 10.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term 140.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with NSAIL, 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 1998, the Ranjani, Dist.Osmanabad (Maharashtra)
headquartered Natural Sugar and Allied Industries Limited (NSAIL)
is mainly involved in manufacture of sugar and by products. NSAIL
operates an integrated sugar unit at Ranjani having 5000 tons per
day (TCD) of sugar crushing capacity, 23 Mega Watt (MW) power
cogeneration unit and 30 Kilo Litres per day (KLPD) distillery
unit. The company also has another sugar unit in Yawatmal having
2500 TCD of crushing capacity, which was acquired in March 2016.
NSAIL is also involved in manufacture of processed milk and milk
products and has a processing unit with 70,000 litres per day of
installed capacity. The company is promoted by Mr. B.B.Thombare.
NICHEM INDUSTRIES: CRISIL Keeps B+ Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Nichem
Industries (Nichem) continue to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 11 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Export Packing Credit 4 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Proposed Cash 3 CRISIL B+/Stable (ISSUER NOT
Credit Limit COOPERATING)
CRISIL Ratings has been consistently following up with Nichem for
obtaining information through letter and email dated July 11, 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 Nichem, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
Nichem is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of Nichem continues to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Nichem is a partnership firm managed by brothers Mr. Harshad Patel
and Mr. Hitesh Patel, who have been in the business for 30 years.
It manufactures reactive dyes for textile mills, and its unit is at
Ahmedabad, Gujarat.
NILADRI MOTORS: CRISIL Keeps B Debt Rating in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Niladri Motors
(NM) continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with NM for
obtaining information through letter and email dated July 11, 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 NM, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on NM is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of NM
continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Set up in 2000 as a proprietorship firm by Mr. Nimai Kar, NM is an
authorised dealer of HMCL in Agartala, Tripura. It operates a
single 3S (sales-service-spares) showroom across its dealership
area. The firm derives over 95% of its revenue from sale of
vehicles and the rest from sale of spares or servicing.
NILESH TIMBERS: CRISIL Keeps B Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Nilesh
Timbers (NT) continue to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2 CRISIL B/Stable (Issuer Not
Cooperating)
Foreign Letter 8 CRISIL B/Stable (Issuer Not
of Credit Cooperating)
CRISIL Ratings has been consistently following up with NT for
obtaining information through letter and email dated July 11, 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 NT, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on NT is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of NT
continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Nilesh Timbers, located in Shecottah, Tamil Nadu, is involved in
the trading of timber majorly in Tamil Nadu and Karnataka. NT is
promoted and managed by Mr.Nilesh Patel and his family members.
NILKANTH COTTON: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings the ratings on bank facilities of Nilkanth Cotton
Industries (NCI) continue to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 3 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with NCI for
obtaining information through letter and email dated July 11, 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 NCI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on NCI
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
NCI continues to be 'CRISIL D Issuer Not Cooperating'.
Set up in 2007 NCI is a partnership between Mr. Prahladbhai Patel,
Mr. Jethabhai Padhariya, Mr. Pragjibhai Padhariya, and Mr.
Vallabhbhai Padhariya. The firm has a cotton ginning unit at Dhasa
in Bhavnagar (Gujarat), with capacity of 200 bales per day. It also
has a cotton-seed oil crushing unit.
NUTRI FIRST: CRISIL Keeps B Debt Rating in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Nutri First
Agro International Private Limited (NFAIPL) continues to be 'CRISIL
B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 10 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with NFAIPL for
obtaining information through letter and email dated July 11, 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 NFAIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
NFAIPL is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of NFAIPL continues to be 'CRISIL B/Stable Issuer Not
Cooperating'.
NFAIPL, incorporated in 2014, is a Pune-based company that
manufactures vegetable oil allied derivative products. Mr. Tanaji
Jayawant Sawant, Mr. Rushiraj Tanaji Sawant, and Mr. Giriraj Tanaji
Sawant are the promoters.
PN WRITER: Ind-Ra Moves D Term Loan Rating to NonCooperating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated P.N. Writer &
Company Pvt Ltd.'s (PNW) term loan rating of 'IND D' to the
non-cooperating category and has simultaneously withdrawn the same.
The detailed rating action is:
-- INR146.90 mil. Term loans (Long-term)* due on May 31, 2026
migrated to non-co-operating category and withdrawn.
Note: ISSUER NOT COOPERATING: Issuer did not co-operate; based on
best available information
*Migrated to 'IND D (ISSUER NOT COOPERATING)' before being
withdrawn
WD – Rating Withdrawn
Detailed Rationale of the Rating Action
The rating has been migrated to the non-cooperating category before
being withdrawn as the issuer did not participate in the
surveillance exercise, despite continuous requests and follow-ups
by the agency through emails and phone calls, and has not provided
information about latest audited financial statement, sanctioned
bank facilities, business plans and projections for the next three
years. 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 rating, as the agency
has received no-objection certificate from the lenders and a
withdrawal request from the issuer. This is consistent with
Ind-Ra's Policy on Withdrawal of Ratings.
The rating has been migrated to 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 PNW while reviewing the
rating. Ind-Ra had consistently followed up with PNW over emails
starting March 2024, apart from phone calls. Although, the issuer
has been submitting its monthly no default statement.
Limitations regarding Information Availability
Ind-Ra is unable to provide an updated forward-looking view on the
credit rating of PNW, 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 the rating. PNW has been
non-cooperative with the agency since March 2024.
About the Company
PNW is a part of Mumbai-based Writer Corporation group, which is
engaged in diversified businesses such as relocation services,
information and records management services, cash management
services and hospitality. As a standalone entity, PNW derives
revenue through rental income from a residential property in Bandra
West, Mumbai (St. Leo Apartments; a seven-storey building with an
area of 857 square meters) and some commercial properties leased to
Writer Business Services. WLPL, a wholly owned subsidiary of PNW,
is engaged in the hospitality business, operating a luxury resort,
Hilton Shillim Estate Retreat and Spa, in Lonavala, near Mumbai.
R.K. PULSES: CRISIL Keeps B Debt Rating in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of R.K. Pulses
Private Limited (RKPL) continues to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with RKPL for
obtaining information through letter and email dated July 11, 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 RKPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RKPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
RKPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Incorporated in 2000 by Mr. Rajiv Kumar Agarwal, RKPL processes
pulses such as split and whole urad dal, masoor, soyabean and
soyameal, and also trades in other pulses and sugar. The
manufacturing unit is located at Bareilly, Uttar Pradesh.
RASIKLAL SANKALCHAND: CRISIL Keeps D Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Rasiklal
Sankalchand Jewellers Private Limited (RSJPL) continue to be
'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 22 CRISIL D (Issuer Not
Cooperating)
Cash Credit 9 CRISIL D (Issuer Not
Cooperating)
Cash Credit 9 CRISIL D (Issuer Not
Cooperating)
Term Loan 3 CRISIL D (Issuer Not
Cooperating)
Term Loan 2 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with RSJPL for
obtaining information through letter and email dated July 11, 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 RSJPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RSJPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
RSJPL continues to be 'CRISIL D Issuer Not Cooperating'.
RSJPL was originally formed in 1972 as a proprietorship firm,
Rasiklal Sankalchand Jewellers. In 2000, this firm was
reconstituted as a private limited company with the current name.
The company retails diamond-studded and gold jewellery through its
showroom in Ghatkopar (Mumbai).
SAFILO HEALTHCARE: CRISIL Keeps B Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Safilo
Healthcare (SH) continue to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Secured Overdraft 3.5 CRISIL B/Stable (Issuer Not
Facility Cooperating)
Term Loan 3.5 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SH for
obtaining information through letter and email dated July 11, 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 SH, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SH is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of SH
continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
SH was established in 2015 as a partnership firm by the Adroja
Family. The firm is engaged in manufacturing of baby diapers under
its own brand 'champs'. They have one manufacturing facility in
Morbi, Gujarat.
SAM INDUSTRIAL: CRISIL Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings the ratings on bank facilities of Sam Industrial
Enterprises Limited (SIEL) continue to be 'CRISIL D/CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1 CRISIL D (Issuer Not
Cooperating)
Cash Credit 7.5 CRISIL D (Issuer Not
Cooperating)
Overdraft Facility 1.5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SIEL for
obtaining information through letter and email dated July 11, 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 SIEL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SIEL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SIEL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Incorporated in 1992 in Delhi, SIEL began operations in 2000. It
designs, prints, and binds books, brochures, and other reading
materials. The company is promoted and managed by Mr. Amit Kaka.
The company does work for private publishers and jobwork for
NCERT.
SATYAM ROLLER: CRISIL Keeps B Debt Rating in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Satyam Roller
Flour Mills Private Limited (SRFMPL) continues to be 'CRISIL
B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SRFMPL for
obtaining information through letter and email dated July 11, 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 SRFMPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
SRFMPL is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of SRFMPL continues to be 'CRISIL B/Stable Issuer Not
Cooperating'.
The group was incorporated in 1995, with Mr. Vijay Shankar Gupta
and his family members as the promoters. The company is engaged in
the processing of wheat into flour, with units in Navi Mumbai and
Pune (Maharashtra) and combined capacity of 720 metric tonnes per
day.
SATYAM SOLUTIONS: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Satyam
Solutions Limited (SSL) continue to be 'CRISIL D/CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Electronic Dealer 10 CRISIL D (Issuer Not
Financing Scheme Cooperating)
(e-DFS)
Overdraft Facility 2.5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SSL for
obtaining information through letter and email dated July 11, 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 SSL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SSL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SSL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Incorporated in 1986 and promoted by Garg family, SSL is an
authorised dealer of Ashok Leyland.
SHAGUN EXPLOCHEM: Ind-Ra Gives BB- Loan Rating, Outlook Stable
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated Shagun Explochem
Private Limited's (SEPL) bank facilities as follows:
-- INR4 mil. Proposed fund based working capital limit assigned
with IND BB-/Stable/IND A4+ rating;
-- INR186 mil. Term loan due on April 20, 2031 assigned with IND
BB-/Stable rating; and
-- INR150 mil. Fund-based working capital facilities assigned
with IND BB-/Stable/IND A4+ rating.
Detailed Rationale of the Rating Action
The ratings reflect SEPL's manufacturing plant's under-construction
phase with a time overrun of six months due to delays in the civil
work, as well as expected small scale of operations with modest
credit metrics and stretched liquidity post commencement of
operations. Ind-Ra expects FY26 will be the first full year of
operations, and an average debt service coverage ratio and overall
credit metrics for the company during the initial years of
commencement of operations. The ratings, however, are supported by
the promoters' experience of two decades in the explosives industry
along with locational advantages.
Detailed Description of Key Rating Drivers
Under-Construction Phase of Manufacturing Plant: The ratings
reflect the under-construction status of SEPL's manufacturing
plant in Bhilwara, Rajasthan. Management had expected the
construction of the manufacturing unit to be completed by
end-September 2024, and the operations were to commence from 1
October 2024. However, there has been a delay on account of civil
work. Ind-Ra expects the scale of operations to be small in the
initial years of operations. FY26 will be the first full year of
operations.
Cost and Time Over-run Risk: The total investment for the project
is INR337.237 million, which will be availed as a term loan of
INR186 million while the promoters will infuse equity of INR80
million and an unsecured loan of INR71.23 million. As of July 2024,
SEPL had incurred INR295.53 million for the purchase of land and
construction work. Management expects to incur the balance amount
of INR41.70 million till September 2024. The management has
informed Ind-Ra that the commercial operations will now commence
from October 2024.
Expected Average Credit Metrics: A term loan of INR186 million has
been sanctioned for project completion. Ind-Ra expects that the
debt service coverage ratio and overall credit metrics to be
average during the initial years of operations, before an
improvement could be seen in the ratios in line with the
improvement in the scale of operations.
Stretched Liquidity: SEPL does not have any capital market
exposure and relies on banks and financial institutions to meet its
funding requirements. In the event of a delay in the completion of
remaining capex, the expenses will be funded by the promoters.
Experienced Promoters: The rating factors in the promoters'
experience of two decades in the explosives industry which would
help SEPL in establish relationship with both the clients and
suppliers.
Locational Advantage: SEPL's manufacturing unit is located in
Bhilwara, Rajasthan which is central to both Rajasthan and Haryana
mining sectors. The state's economy depends upon the mining
production of over 50 minerals. Explosives are required for all the
essential mining projects and the construction of large
infrastructure projects. The plant is also closely located to
primary clientele will aid sales. Also, the plant is well connected
by rail and road.
Liquidity
Stretched: The company has a scheduled debt repayment of INR11.5
million in FY25. Ind-Ra expects the net working capital cycle to
moderate at around 68 days in FY26.
Rating Sensitivities
Negative: Any delay in the commencement of operations and achieving
stability in the operating performance, affecting the company's
debt servicing ability, could be negative for the ratings.
Positive: The timely commencement of operations and the subsequent
achievement of stable operating profitability could be positive for
the ratings.
About the Company
Incorporated in 2019 and headquartered in Bhilwara, Rajasthan, SEPL
manufactures slurry and emulsions used in the explosives market.
The promoters are Tanmay Gattani, Deelip Baheti, Prakash Gattani
and Dinesh Kumar Laddha.
SHANTHADURGA RICE: CRISIL Keeps B Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Shanthadurga
Rice Industries (SRI) continue to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Cash 4 CRISIL B/Stable (Issuer Not
Credit Limit Cooperating)
Proposed Long Term 1 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with SRI for
obtaining information through letter and email dated July 11, 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 SRI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SRI
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SRI continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Set up in 2015 in Siddapura, as a partnership concern, SRI mills
and processes paddy into rice.
SHIMLA TOLLS: ICRA Lowers Rating on INR32cr Term Loan to D
----------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Shimla
Tolls and Projects Pvt. Ltd., as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 32.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating downgraded from
Term Loan [ICRA] C; ISSUER NOT COOPERATING
and continues to remain under
'Issuer Not Cooperating'
category
Long-term– 5.15 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating downgraded from
Cash Credit [ICRA] C; ISSUER NOT COOPERATING
and continues to remain under
'Issuer Not Cooperating'
category
Long Term– 1.50 [ICRA]D; ISSUER NOT
COOPERATING;
Non-Fund Based- Rating downgraded from [ICRA]C;
Others ISSUER NOT COOPERATING and
continues to remain under
'Issuer Not Cooperating'
Rationale
The rating downgrade is attributable to the lack of adequate
information regarding Shimla Tolls and Projects Pvt. Ltd.
Performance and there was some delay in servicing of debt
obligations of the term loan by the company and Special mention
account (SMA) reporting with the bank, owing to weak liquidity
based on publicly available information, hence the uncertainty
around its credit risk. ICRA assesses whether the information
available about the entity is commensurate with its rating and
reviews the same as per its "Policy in respect of non-cooperation
by a rated entity" available at www.icra.in. The lenders, investors
and other market participants are thus advised to exercise
appropriate caution while using this rating, as the rating may not
adequately reflect the credit risk profile of the entity, despite
the downgrade."
As part of its process and in accordance with its rating agreement
with Shimla Tolls and Projects Pvt. Ltd., ICRA has been trying to
seek information from the entity to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite repeated
requests by ICRA, the entity's management has remained
noncooperative. In the absence of the requisite information and in
line with the aforesaid policy of ICRA, the rating has been moved
to the "Issuer Not Cooperating" category. The rating is based on
the best available information.
Shimla Tolls & Projects Pvt. Ltd. (STPPL) is a special purpose
vehicle (SPV) promoted by Shri Parmod Sood (44.16%), Shri Kawaljeet
Singh Duggal (49.16%), M/s P. K. Construction Shimla Pvt. Ltd.
(6.67%) and M/s A.N.S. Constructions Ltd. (0.01%) to develop the
parking complex at lift area in Shimla with a parking capacity of
700 car spaces through public private partnership (PPP) on design,
build, operate and transfer (DBOT) basis. The project was awarded
by Himachal Pradesh Infrastructure Development Board (HPIDB), for a
concession period of 30 years. The concession agreement between the
Shimla Municipal Corporation (Authority) and STPPL (Concessionaire)
was signed on February 26, 2011. In FY2020, the company reported a
net loss of INR1.5 crore on an OI of INR3.6 crore compared to a net
loss of INR2.0 crore on an OI of INR2.2 crore in the previous year.
SIYARAM EXPORTS: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Siyaram
Exports India Private Limited (SEIPL) continue to be 'CRISIL
D/CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL D (Issuer Not
Cooperating)
Foreign Exchange 0.02 CRISIL D (Issuer Not
Forward Cooperating)
Working Capital 1.25 CRISIL D (Issuer Not
Demand Loan Cooperating)
Working Capital 0.54 CRISIL D (Issuer Not
Demand Loan Cooperating)
CRISIL Ratings has been consistently following up with SEIPL for
obtaining information through letter and email dated July 11, 2024
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SEIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SEIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SEIPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
SEIPL, incorporated in 1986, manufactures and exports bed linen,
table linen, mattress, cushion cover, and pillow cover. It is
located in Durgapura (Jaipur). The daily operations of the company
are managed by Mr.Satish Chandra Katta.
SMILAX PSYLLIUM: Ind-Ra Affirms BB+ Loan Rating, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Smilax Psyllium
Impex LLP (SPILLP)'s bank facilities' ratings as follows:
-- INR64.09 mil. (reduced from INR72.8 mil.) Term loan due on
September 2027 affirmed with IND BB+/Stable rating;
-- INR15.4 mil. Derivative limit affirmed with IND A4+ rating;
-- INR1.050 bil. Fund-based working capital limit affirmed with
IND BB+/Stable/IND A4+ rating; and
-- INR200 mil. Fund-based working capital limit assigned with IND
BB+/Stable/IND A4+ rating.
Detailed Rationale of the Rating Action
The rating affirmation reflects SPILLP's continued small scale of
operations despite an improvement in revenue, continued modest
EBITDA margins and credit metrics, customer concentration risk and
a stretched liquidity position in FY24. Ind-Ra expects the EBITDA
margins to decline in FY25 due to volatility in raw material prices
and payment of lease rental on the additional capacity. The agency
expects the credit metrics to also deteriorate in FY25 because of
the additional debt availed for funding capex and the likely
decline in the overall EBITDA. However, the ratings are supported
the promoters experience of over three decades in the manufacturing
of pharmaceutical products, leading to established relationships
with reputed customers.
Detailed Description of Key Rating Drivers
Continued Small Scale of Operations despite Significant Improvement
in Revenue in FY24: According to FY24 provisional financials, the
revenue from operations surged to INR2,032.02 million (FY23:
INR993.77 million, FY22: INR586.08 million) on account of an
increase in sales volume as well as an increase in selling price in
latter half of the year. Furthermore, the company witnessed an
increase in its customer base and the number of orders executed on
account of closure of operational activities of one of its group
company - M/s Smilax Psyllium Impex Co., a proprietary concern.
SPIC had a similar nature of business and closed operations in
September 2023. Following which, SPIC leased its manufacturing
capacity of 1,200 metric tons per annum to SPILLP.
SPILLP derived INR1,851.73 million of its revenue from the sale of
psyllium husk in FY24 (FY23: INR870.77 million). Exports dominates
the revenue accounting for 77% in FY24 (FY23: 61%). In 4MFY25, the
company booked revenue of about INR700 million and had an
unexecuted order book worth INR176.52 million, to be executed by
end of FY25. Ind-Ra expects a marginal improvement in the revenue
in FY25 backed by enhancement of production capacities and a likely
stable demand.
Continued Modest EBITDA Margins; Likely to Decline in FY25: In
FY24, the EBITDA margins stood at 6.02% (FY23: 5.15%, FY22: 5.76%)
with a return on capital employed of 15.8% (9.6%). The improvement
in the EBITDA margins in FY24 was on account of better absorption
of fixed cost and an increase in operating income, mainly a one-off
forex gain. The cost of goods sold accounted for about 91% of the
revenue in FY24 (FY23: 90.37%). SPILLP is exposed to seasonality
and volatility in raw material prices as seeds one of the major raw
materials required for producing psyllium husk and cattle feed, and
has only one crop season in a year in April. The production of
seeds is dependent on weather conditions. Thus, raw material prices
are dependent on seed production and demand-supply forces. Ind-Ra
expects the margins to decline in FY25 due to volatility in raw
material prices and payment of lease rental on the additional
capacity.
Continued Modest Credit Metrics; Likely to Deteriorate Further in
FY25: The gross interest coverage (operating EBITDA/gross interest
expense) deteriorated to 1.69x (FY23: 3.2x, FY22: 5.07x) and the
net leverage (adjusted net debt/operating EBITDA) to 4.13x (3.67x,
3.21x) on account of the increase in debt, leading to an increase
in interest and financial charges. The company increased its
fund-based working capital limits by INR250 million to fund the
increase in its working capital requirements due to the increase in
the scale of operations. It also availed long-term debt of INR36.45
million for meeting capex related to capacity enhancement. During
FY25, SPILLP incurred capex of INR23.70 million and will further
incur INR15 million during the year for capacity expansion, of
which INR15.4 million is debt funded. Thus, Ind-Ra expects the
credit metrics to deteriorate in FY25 on account of the likely
decline in the overall EBITDA and the increase in debt.
Customer Concentration Risk: In FY24, SPILLP's top five customers
accounted for 87% of the total revenue (FY23: 91%). Furthermore,
the company derives more than 50% of the total revenue from a
single customer - M/s Proctor and Gamble Manufacturing Co. However,
the company's strong and healthy relationship with its key clients
mitigates this risk to some extent. Further, the company is
focusing on expanding its customer base globally.
Stretched Liquidity: In FY24, the cash flow from operations
deteriorated to negative INR326.81 million (FY23: negative
INR155.81 million) due to increased working capital requirements.
This, along with capex of INR45.27 million in FY24 (FY23: INR5.09
million), led to a decline in the free cash flow to negative
INR372.08 million (negative INR160.27 million). SPILLP has debt
repayment obligations of INR12.5 million and INR16.7 million in
FY25 and FY26, respectively. Furthermore, the company does not have
any capital market exposure and relies on banks and financial
institutions to meet its funding requirements.
Experienced Promoters: The promoters have over three decades of
experience in the manufacturing of pharmaceutical products, leading
to its established ties with reputed customers such as the Procter
& Gamble Company, Lupin Limited and Caremoli Group.
Liquidity
Stretched: SPILLP's average monthly utilization of its fund-based
limits was around 96.51% over the 12 months ended July 2024. At
FYE24, the cash and cash equivalents stood at INR5.84 million
(FYE23: INR3.75 million). The working capital cycle remained
elongated, although improved to 128 days in FY24 (FY23: 131 days)
owing to a decrease in the inventory holding period to 76 days (84
days) and an increase in creditor period to 16 days (3 days),
partially offset by an increase in the receivable period to 68 days
(50 days).
Rating Sensitivities
Negative: A decline in the scale of operations, leading to
deterioration in the overall credit metrics and/or pressure on the
liquidity position, all on a sustained basis, could lead to a
negative rating action.
Positive: A significant increase in the scale of operations, along
with an improvement in the credit metrics and liquidity with the
interest coverage exceeding 2.5x, all on a sustained basis, could
lead to a positive rating action.
About the Company
Established in 2020 in Jaipur, Rajasthan, SPILLP manufactures
psyllium husk and psyllium husk powder, and it's by products such
as cattle feeds and psyllium red powder. M.B. Goyal, Mukta Goyal,
Vibhor Goyal and Smilax Healthcare Private Limited are the
promoters.
SULTANPURE TEXTILE: Ind-Ra Affirms B+ Bank Loan Rating
------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Sultanpure Textile
Mills Private Limited's (STMPL) bank facilities as follows:
-- INR40 mil. (reduced from INR68.5 mil.) Term loan due on FY28
affirmed with IND B+/Stable rating; and
-- INR120 mil. Fund-based limit affirmed with IND B+/Stable/IND
A4 rating.
Detailed Rationale of the Rating Action
STMPL's ratings are constrained by its small scale of operations,
modest EBITDA margins and credit metrics. However, Ind-Ra expects
an improvement in the scale of operations and credit metrics in
FY25, on account of better price realization. The ratings remain
supported by STMPL's experienced promoters.
Detailed Description of Key Rating Drivers
Small Scale of Operations; Improvement Likely: The ratings reflect
STMPL's small scale of operations even as its revenue improved to
INR884.13 million in FY24 (FY23: INR857.31 million) and its EBITDA
to INR40.2 million (INR15.37 million) due to an increase in the
orders received, a higher product demand, and a rise in export
sales that have better margins. During 4MFY25, STMPL booked a
revenue of INR373 million. Over the medium term, Ind-Ra expects the
revenue to improve due to an increase in the orders received and a
further rise in the demand. FY24 numbers are provisional.
Modest EBITDA Margin: The ratings also factor in STMPL's modest
EBITDA margin of 4.55% in FY24 (FY23: 1.79%) with a return on
capital employed of 12.5% (5%). In FY24, the EBITDA margin improved
due to the increase in the export sales and better price
realization. Over the medium term, Ind-Ra expects the EBITDA margin
to improve further due to an improvement in the quality of the
fabric cloth the company produces and as it plans to increase
export sales to fetch high margins.
Modest Credit Metrics: STMPL's interest coverage (operating
EBITDA/gross interest expenses) improved to 1.22x in FY24 (FY23:
0.92x) and the net leverage (adjusted net debt/operating EBITDAR)
to 6.75x (10.1x), due to the increase in its EBITDA margins as well
as the absolute EBITDA. However, the credit metrics remain modest.
Over the medium term, Ind-Ra expects the credit metrics to improve
further due to the likely improvement in the scale of operations as
well as margins, along with a reduction in the total debt due to
the repayment of long-term loans.
Poor Liquidity: STMPL's average month-end utilization of the
fund-based limits was 96.13% during the 12 months ended July 2024.
The cash flow from operations deteriorated to negative INR118.11
million in FY24 (FY23: negative INR21.65 million) owing to
unfavorable changes in the working capital. The elongated net
working capital cycle lengthened to 107 days in FY24 (FY23: 89
days) mainly on account of the high inventory days as STMPL
purchases its inventory in bulk. The company provides around 60
days credit period to its customers and receives around 90 days
credit period from its suppliers. The inventory holding period
varies from 100 days to 140 days, depending on the orders
received.
Experienced Promoters: The ratings, however, are supported by the
promoters' nearly two decades of experience in the textile
industry, leading to established relationships with customers as
well as suppliers.
Liquidity
Poor: The company has scheduled term debt repayments of INR8.89
million and INR13.33 million in FY25 and FY26. The cash and cash
equivalents stood at INR1.35 million at FYE24 (FYE23: INR2.44
million). STMPL does not have any capital market exposure and
relies on banks and financial institutions to meet its funding
requirements.
Rating Sensitivities
Negative: A decline in the scale of operations, leading to
deterioration in the overall credit metrics or a weakening of the
liquidity position, could lead to a negative rating action.
Positive: A substantial increase in the scale of operations, along
with an improvement in the liquidity position and overall credit
metrics with the interest coverage increasing above 1.6x, all on a
sustained basis, could lead to a positive rating action.
About the Company
Established in 1994, Ichalkaranji, Maharashtra-based STMPL is
engaged in the designing and manufacturing of industrial fabrics
for use in laminated, pharmaceutical, abrasive and self-adhesive
tapes. Gajanan Sultanpure and Tushar Sultanpure are the promoters.
SURYA POULTRY: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Sri Surya
Poultry Farm (SSPF) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1 CRISIL D (Issuer Not
Cooperating)
Cash Credit 4.2 CRISIL D (Issuer Not
Cooperating)
Long Term Bank 7.3 CRISIL D (Issuer Not
Facility Cooperating)
Proposed Working 0.5 CRISIL D (Issuer Not
Capital Facility Cooperating)
CRISIL Ratings has been consistently following up with SSPF for
obtaining information through letter and email dated July 11, 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 SSPF, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SSPF
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SSPF continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Set up in 2011 as a partnership firm by Mr. Srinivas Reddy and his
family, Andhra Pradesh-based SSPF is engaged in the poultry
business and has installed capacity of 2.24 lakh layer birds.
SUYASH HEALTHCARE: CRISIL Assigns B+ Rating to INR37.6cr Loan
-------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating to the
bank facilities of Suyash Healthcare Pvt Ltd (SHPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL B+/Stable (Assigned)
Proposed Term Loan 2.4 CRISIL B+/Stable (Assigned)
Term Loan 37.6 CRISIL B+/Stable (Assigned)
The ratings reflect the highly levered capital structure and
working capital intensive operations of the company, these
weaknesses are partially offset by healthy operating profitability
and improving scale of operations.
Analytical Approach
Unsecured loan of INR4.25 crores taken from directors, friends and
family has been treated as debt, as there exists a limited track
record of sustenance of these funds and management intends to repay
the same as and when required.
Key Rating Drivers & Detailed Description
Weaknesses:
* Working capital intensive nature of operations: The operations of
the company are working capital intensive as reflected in GCA days
ranging between 160-190 days for last 2 years through FY24, largely
driven by debtor days of 60-75 days and inventory days ranging
between 60-90 days, resultantly the bank lines have been almost
fully utilised for last 12 months through April 2024. With no
change in business model, and focus of management towards
consistently improving scale of operations, the operations of
company are expected to remain working capital intensive over
medium term. Efficient management of working capital cycle, leading
to lower reliance on bank lines, thereby improving the average bank
limit utilisations and further strengthening the financial risk
profile would remain a key rating sensitivity factor.
* Highly leveraged capital structure: The capital structure of the
company has been highly leveraged, as reflected in gearing of of
4.8 times as on March 31, 2024, on account of lower capital base of
INR6.46 crores as on March 31, 2024. With incremental term loan and
working capital limits taken in current fiscal to finance the
capacity expansion for manufacturing of IV shift and IV Canula, the
gearing levels are further expected to deteriorate, with expected
gearing of 7-8 times as on March 31, 2025. Going ahead, with no
major debt funded capital expenditure proposed to be taken and
retention of profits into business, the capital structure is
expected to gradually improve with retention of profits into
business and shall therefore remain a key rating sensitivity
factor.
Strengths:
* Consistently improving scale of operations: The scale of
operations of the company have been consistently improving with
start of commercial production from August 2022, where the company
has achieved an operating income of INR22 crores in FY23 and has
improved to INR48 crores in FY24. As the company is planning to set
up additional facility for manufacturing of IV shift and Canula, at
a capital expenditure of INR22.0 crores, which shall largely be
debt funded, commercial production of which is expected to support
the growth in operating income from H2 of FY25, with operating
income expected to be in range of INR60-70 crores in current
fiscal, with expected operating income in range of 80-90 crores in
FY26. Extensive experience of promoters along with healthy business
relations with their customers and suppliers shall continue to
support the business risk profile which shall further support the
consistent improvement in scale of operations.
* Healthy operating profitability: The operating profitability of
the company has been healthy with margins ranging between 13-14%
for the last 2 years through FY24. Going ahead with healthy demand
from the healthcare industry and the ability to pass through any
increase in prices of raw materials, operating margins are expected
to remain healthy in the range of 12-13% over medium term.
Sustenance of healthy operating profitability amid sustained
improvement in scale of operations shall therefore remain a key
rating sensitivity factor.
Liquidity: Poor
SHPL's liquidity is stretched, as reflected in average bank limit
utilisations of ~99% utilised for last 12 months through April
2024. Liquidity risk is mitigated with net cash accrual of INR5-9
crores, which shall be sufficient to meet up with annual debt
repayment obligations ranging between INR2-4 crores. The company is
planning to enhance their bank limits to INR5.0 crores, which is
expected to be drawn after start of commercial production from new
facility. Enhanced limits are expected to improve the liquidity
profile of the company, however, shall remain a key rating
sensitivity factor.
Outlook: Stable
CRISIL Ratings believe extensive experience of promoters shall
continue to support the business risk profile of the company.
Rating Sensitivity Factors
Upward factors:
* Sustained increase in operating income and sustenance of
operating margins, leading to healthy retention of profits into
business, which shall resultantly improve the gearing levels with
Debt/Equity levels falling below 3-4 times.
* Efficient management of the working capital cycle leading to
lower reliance on external debt, thereby reducing the utilisation
in bank lines below 85% on average basis.
Downward factors:
* Decline in revenue or operating margin leading to lower retention
of profits into business, resulting in gearing levels rising above
7-8 times.
* A stretched working capital cycle leading to higher utilisation
of bank lines.
SHPL was incorporated in 2021. SHPL is engaged in manufacturing
medical equipment's such as B.T sets, luer slip syringes, ryle's
tube, IV infusion sets, insulin syringes. SHPL manufacturing
facility is in Lucknow, Uttar Pradesh. SHPL is owned & managed by
Mr. Navin Yadav (CEO) and Mr. Suyash Yadav (Director).
THAMIZH CONSTRUCTIONS: CRISIL Keeps B+ Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Thamizh
Constructions Private Limited (TCPL) continue to be 'CRISIL
B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 5 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Long Term 3 CRISIL B+/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with TCPL for
obtaining information through letter and email dated July 11, 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 TCPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on TCPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
TCPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
TCPL was established in 2004 as a private limited company by Mr.
Prabhakar. The firm, based in Trichy, undertakes residential real
estate projects. It is currently undertaking such a project -
'Thamizh Kaveri' in Trichy.
TORNADO MOTORS: CRISIL Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Tornado
Motors Private Limited (Tornado) continue to be 'CRISIL D/CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 13 CRISIL D (Issuer Not
Cooperating)
Cash Credit 17 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with Tornado for
obtaining information through letter and email dated July 11, 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 Tornado, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
Tornado is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of Tornado continues to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Tornado, incorporated in September 2010, is promoted by Mr.
Jitendra Pal Singh Chadha, and his wife, Mrs. Amanpreet Chaddha.
The company is an authorised dealer of Volkswagen passenger
vehicles, and has one showroom and workshop in Mumbai
(Maharashtra).
TORRID MOTORS: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Torrid Motors
(Torrid) continue to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL D (Issuer Not
Cooperating)
Term Loan 1 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with Torrid for
obtaining information through letter and email dated July 11, 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 Torrid, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
Torrid is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of Torrid continues to be 'CRISIL D Issuer Not
Cooperating'.
Torrid, incorporated in September 2013, is the sole proprietorship
of Mr. Jitendra Pal Singh Chadha. The firm is an authorized dealer
of Fiat passenger vehicles, and has one showroom and workshop in
Mumbai (Maharashtra).
UMASONS AUTO: Ind-Ra Assigns BB+ Bank Loan Rating
-------------------------------------------------
India Ratings and Research (Ind-Ra) has rated Umasons Auto Compo
Private Limited's (UACPL) bank facilities as follows:
-- INR214.89 mil. Term loan due on March 31, 2031 assigned with
IND BB+/Stable rating;
-- INR356 mil. Fund-based working capital limit assigned with IND
BB+/Stable/IND A4+ rating; and
-- INR29.11 mil. Proposed fund-based working capital limit
assigned with IND BB+/Stable/ IND A4+ rating.
Detailed Rationale of the Rating Action
The ratings reflect the intense competition in industry, high
customer concentration risk, and weak current ratio. However, the
ratings are supported by UACPL's medium scale of operations,
healthy EBITDA margins, and comfortable credit metrics in FY24 and
its experienced promoters. In the medium term, Ind-Ra expects the
credit metrics to improve, led by a likely improvement in the
revenue and EBITDA.
Detailed Description of Key Rating Drivers
Exposure to Intense Competition: The automobile industry is highly
competitive. A large portion of the industry is serviced by
multiple players, who cater to small scale requirements of clients
across industries, while the remaining market is dominated by a few
major players.
Customer Concentration Risk: UACPL's top five customers accounted
for 96.34% of its total revenue in FY24 (FY23: 97.29%).
Furthermore, the company derives about 83.86% of its total revenue
from Bajaj Auto Limited (IND AAA/Stable). UACPL has also been
focusing on expanding its client base in the domestic and abroad
market and catering to international brands.
Weak Current Ratio: The ratings are also constrained by the weak
current ratio at 0.90x in FY24 (FY23: 0.80x), with current assets
of INR623.40 million (INR411.77 million) and current liabilities of
INR 690.79 million (INR513.61 million). Ind-Ra expects the current
ratio to improve marginally in the medium term, backed by a likely
improvement in working capital.
Healthy EBITDA Margins: UACPL's EBITDA margin increased to 7.83%
in FY24 (FY23: 2.58%) because of increased absorption of fixed
costs, led by revenue growth, and a rise in the share of
higher-margin export revenue. The ROCE was 16.80% in FY24 (FY23:
0.6%). Ind-Ra expects the EBITDA margin to remain at similar
levels in FY25 and over the medium term, backed by likely stability
in operations.
Comfortable Credit Metrics: In FY24, the credit metrics improved on
account of an increase in the absolute EBITDA to INR192.72 million
(FY23: INR55.28 million. The interest coverage (operating
EBITDA/gross interest expenses) was 4.79x in FY24 (FY23: 1.83x) and
the net leverage (total adjusted net debt/operating EBITDAR) was
2.72x (8.52x). Ind-Ra expects the credit metrics to improve in
FY25 and over the medium term on the back of a likely improvement
in the absolute EBITDA and scheduled debt repayments.
Medium Scale of Operations: UACPL's revenue increased to
INR2,460.81 million in FY24 (FY23: INR2,146.55 million), driven by
higher demand from domestic as well as overseas customers. In
1QFY25, UACPL booked revenue of INR640 million, and it had an order
book of INR294.15 million as of July 2024, to be executed by
September 2024. The total installed capacity increased to 23,000
units in FY24 (FY23: 21,000 units), on the back of a new
manufacturing facility set up during the year. Also, the capacity
utilization increased to 16,751 units in FY24 (FY23: 14,350 units),
led by an increase in the number of orders received by the company.
Ind-Ra expects the revenue to improve in FY25 and over the medium
term due to a continued increase in orders and higher volumes on
account of the new manufacturing facility.
Experienced Promoters: The ratings are supported by the promoters'
experience of more than four decades in the automobile industry,
which has helped the company establish strong relationships with
customers as well as suppliers.
Liquidity
Stretched: UACPL does not have any capital market exposure and
relies on banks and financial institutions to meet its funding
requirements. UACPL's average maximum utilization of the fund-based
limits was 90.09% during the 12 months ended July 2024. The cash
flow from operations declined to INR90.64 million in FY24 (FY23:
INR130.80 million) owing to unfavorable changes of INR51.89 million
in the working capital. The free cash flow remained negative at
INR30.75 million (FY23: negative INR61.80 million) due to capex of
INR121.39 million undertaken during the year. The average net
working capital cycle stretched to 49 days in FY24 (FY23: 34 days),
mainly because of increased debtor (FY24: 62 days; FY23: 45 days)
and inventory days (39 days; 28 days). The cash and cash
equivalents stood at INR4.62 million at FYE24 (FYE23: INR 11.67
million). UACPL has debt repayment obligations of INR68.80 million
and INR43.00 million in FY25 and FY26, respectively.
Rating Sensitivities
Negative: A decline in the scale of operations, leading to
deterioration in the overall credit metrics, with the net leverage
exceeding 4.5x and/or a further pressure on the liquidity position,
all on a sustained basis, could lead to a negative rating action.
Positive: A substantial increase in the scale of operations while
maintaining the overall credit metrics, with the net leverage
remaining below 3.5x and an improvement in the liquidity profile,
including an improvement in current ratio, all on a sustained
basis, could lead to a positive rating action.
About the Company
Incorporated in 2000, UACPL manufactures Press, Fabricated, Surface
Coated Automotive Components and Assemblies majorly for Bajaj Auto.
Promoted by Ramchandra Bhogale and Kedar Deshpande, UACPL is based
in Aurangabad, Maharashtra. UACPL has manufacturing capacity of
23,000 metric tons per annum.
VAISHNAV METAL: CRISIL Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Shree
Vaishnav Metal and Power Private Limited (SVMPPL) continue to be
'CRISIL D/CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1 CRISIL D (Issuer Not
Cooperating)
Cash Credit 10 CRISIL D (Issuer Not
Cooperating)
Cash Credit 5 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 5 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 5 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 31.27 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 13.73 CRISIL D (Issuer Not
Cooperating)
Term Loan 9 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SVMPPL for
obtaining information through letter and email dated July 11, 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 SVMPPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
SVMPPL is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of SVMPPL continues to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
SVMPPL, incorporated in 2005 by the Agarwal family, is engaged in
galvanisation and fabrication. Its manufacturing facilitates are in
Wada (Maharashtra) and registered office is in Mumbai.
VAMSI PHARMA: ICRA Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
ICRA has kept the Long-Term ratings for the Bank Facility of Vamsi
Pharma Private Limited (VPPL) in the 'Issuer Not Cooperating'
category. The ratings are denoted as "[ICRA]D; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term 2.80 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term 11.25 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with VPPL, 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.
Vamsi Pharma Private Ltd. (VPPL) is a private limited company
incorporated on July 16, 2015. The registered office is located in
Banjara Hills, Hyderabad. The company is looking at an annual
production capacity of 28,200 kg in manufacturing anti-asthmatics,
corticosteroids and pre-mixes. It is promoted by Mr. Kesava Reddy,
who has a 29% shareholding in VPPL, Mr. Pratap Reddy, Mr.
Madhusudhan Reddy and Dr. Ravindra Purohit. The promoters are
currently involved in manufacturing active pharmaceutical
ingredients (API) through Vamsi Labs Ltd. (VLL) Solapur
(Maharashtra).
VANSHIKA CONSTRUCTIONS: Ind-Ra Assigns B+ Rating, Outlook Stable
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Vanshika
Constructions' (VC) a Long-Term Issuer Rating as follows:
-- Issuer rating assigned with IND B+/Stable rating.
Detailed Rationale of the Rating Action
The rating reflects VC's stretched liquidity in FY24 with delay in
regularizing of fund-based working capital facilities, significant
group transactions, a decline in EBITDA margins and concentration
risks associated with the construction segment. The rating,
however, is supported by the promoters' decade-long experience in
the construction and liquor industry, and continued modest credit
metrics in FY24.
Detailed Description of Key Rating Drivers
Stretched Liquidity with Several Instances of Overutilization;
Delay in Regularization: The firm reported several instances of
overutilization of the fund-based facilities during the 12 months
ended July 2024. The fund-based limits remained overutilized for
more than 30 days in March 2024, which was regularized on 4 May
2024. Furthermore, VC has a limited financial flexibility with
banks for borrowings and no access to capital markets. However, the
firm is planning to increase its working capital facilities to
INR150 million from INR100 million. Its ability to implement robust
system to avoid overutilization remains a key rating monitorable.
Decline in EBITDA Margins in FY24: As per FY24 provisional
financials, the EBITDA margins declined to 4.76% (FY23: 7.17%) due
to losses incurred in the construction and toll plaza segments.
Ind-Ra expects the EBITDA margins to be volatile in the
near-to-medium term due to unascertainable margins in the
construction and toll plaza segments.
Significant Group Transaction: The unsecured loans from family and
friends taken by VC to fund its working capital requirement and
creation of margin money for the tenders increased to INR1,175
million at FYE24 (FYE23: INR517 million). Similarly, VC provides
loans and advances to related parties at an interest rate of 6%-9%.
The loans and advances given by the firm to related parties stood
at about INR1,658 million at FYE24 (FYE23: INR1,250 million). The
timely realization of these advances/loans remains critical
considering the unascertainable nature of the loans and advance.
Customer Concentration Risks in Construction Segment: The
construction segment derives revenue from two clients - Public
Works Department (PWD) Jabalpur and Krishna Infrastructures,
exposing the firm to customer concentration risks. Also, all these
contracts are based out of Madhya Pradesh, exposing it to
geographical concentration risk . As of July 2024, the firm had
construction order book of INR504 million (around 1.5x of FY24
segment operating revenue), to be executed by FY25. The agency
expects the firm to maintain similar level of order book in the
medium term, and largely from the PWD considering the execution
track record for PWD.
Regulatory Risk in Liquor Business: The alcoholic beverage sector
is highly regulated by the state government, which oversees the
sales and distribution, exposing it to risks associated with
changes in government policies. Any modification in the policies
related to liquor production, distribution, taxation, state excise
duty, or significant changes in the duty structure could impact the
firm.
Exposure to Intense Competition: VC operates in a highly
competitive industry where the acquisition of liquor and sand
mining rights through tenders involves fierce competition,
resulting in unstable profit margins.
Partnership Nature of Business: VC is a partnership firm, which
restricts its overall financial flexibility in terms of limited
access to external fund for any future expansion plans unless
otherwise provided in the partnership deed. Furthermore, there is
an inherent risk of a possible withdrawal of capital and the
dissolution of the firm in case of death/insolvency/separation of
its partners. Furthermore, there VC had reconstituted as a
partnership firm on 1 April 2023, since four of its partners
retired.
Growth in Revenue in FY24: The revenue grew to INR5,487.1 million
in FY24 (FY23: INR3,604million) due to execution of new tenders in
the toll plaza segment. The revenue from toll plaza surged to
INR2,960 million in FY24 (FY23: INR898 million). The scale of
operations is medium. The company generated 54% of the revenue from
toll plaza, 30% from liquor, 10% from sand mining and 6% from
construction (6%)and Toll Plaza collection segments in FY24.
Experienced Promoters: The promoters have more than a decade of
experience in the construction and liquor industry. This has
facilitated the company to establish strong relationships with
customers as well as suppliers.
Modest Credit Metrics :The interest coverage (operating
EBITDA/gross interest expenses) improved to 5.04x in FY24 (FY23:
4.15x) owing to due to a marginal increase in the EBITDA to INR262
million (INR258 million). However, the net leverage (total adjusted
net debt/operating EBITDAR) deteriorated to 4.94x in FY24 (FY23:
2.22x) due to the significant increase in unsecured loans at the
end of the year. Ind-Ra expects the credit metrics to remain
volatile in the medium term, due to unascertainable margins and
infusion/withdrawal of unsecured loans.
Liquidity
Stretched: The average maximum utilization of the fund-based limits
was 98.5% for the 12 months ended May 2024 with several instances
of overutilization. Furthermore, the non-fund-based limits remained
fully utilized during the same period. The fund flow from
operations declined to INR237 million in FY23 (FY22: INR247
million) due to a decline in EBITDA. However, the free cash flow
turned positive to INR29 million in FY 23 (FY22: negative INR164
million) due to favorable changes in working capital. The net
working capital cycle including security deposits made by the firm
elongated to 70 days in FY23 (FY22: 59 days) mainly on account of a
decrease in the payable period to 33 days (86 days). The cash and
cash equivalents stood at INR51.48 million at FYE24 (FYE23:
INR110.78 million). VC has scheduled debt repayments of INR8.54
million, each, in FY25 and FY26.
Rating Sensitivities
Positive: An improvement in liquidity and profitability while
maintaining the scale of operations and credit metrics, all on a
sustained basis, will be positive for the rating.
Negative: Deterioration in the liquidity and profitability or a
decline in the scale of operations and credit metrics, all on a
sustained basis, will be negative for the rating.
About the Company
VC is a partnership firm engaged in construction of roads, liquor
trading, operating of toll plazas, and mining and extraction
business. Its head office is in Narsinghpur, Madhya Pradesh. The
firm operates around 21 liquor shops in Madhya Pradesh as of FY24.
VIJAI ELECTRICALS: Ind-Ra Hikes Bank Loan Rating to B+
------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Vijai Electricals
Limited's (VEL) bank facilities' ratings to 'IND B+' from 'IND D'.
The Outlook is Stable.
The detailed rating actions are:
-- INR530.90 mil. (reduced from INR1,092.3 bil.) Fund-based
working capital limit upgraded with IND B+/Stable/IND A4
rating; and
-- INR2,857.80 bil. (reduced from INR5,982.70 bil.) Non-fund-
based working capital limit upgraded with IND A4 rating.
Analytical Approach
Ind-Ra continues to take a standalone view of VEL to arrive at the
ratings while factoring in the equity required to be infused by the
company in its under-construction joint venture at Algeria, in
which it holds a 40% stake.
Detailed Rationale of the Rating Action
The upgrade reflects the regularization of VEL's overutilized
working capital limits and the timely servicing of its debt
obligations from April 18, 2024, thereby easing the immediate
liquidity stress. VEL availed a term loan of INR1.05 billion in
April 2024 to address the over utilization of the working capital
limits. The ratings also reflect VEL's increased leveraging and
constrained liquidity profile as reflected in the limited working
capital limits and a stretched working capital position. The
ratings take into account VEL's robust order book at end-June 2024,
translating into a likely strong pick up in its execution, along
with an improvement in its margin profile, bringing some relief in
the credit profile.
Detailed Description of Key Rating Drivers
Stretched Liquidity: Timely Debt Servicing from April 2024: VEL has
regularized its overutilized fund-based working capital limits and
has been servicing debt on time since 18 April 2024. However, the
company's liquidity position remains stretched. The average monthly
utilization of its fund-based working capital limits stood at over
127% and that of its non-fund-based limits stood at 77% for the 12
months ended June 2024. The average utilization of the fund-based
limits was 95% over April-June 2024, post the regularization of its
limits. Furthermore, certain fund and non-fund-based limits are on
run down.
The company's gross working capital (receivables + inventory +
mobilization advances + security deposits) remained elevated but
reduced to 124% of the revenue at FYE24 (FYE23: 235%) due to
recoveries of the stuck receivables. VEL effectively realized
debtors and retention money worth INR1,440 million in FY23 and
INR277 million in FY24. VEL is expecting to recover nearly INR1,500
million of stuck receivables in 2QFY25, largely from Andhra Pradesh
Eastern Power Distribution Company Limited and Jharkhand Bijli
Vitran Nigam Limited. The net working capital reduced to 71% in
FY24 from 174% in FY23 with VEL receiving better payment terms from
its suppliers and by it availing mobilization advances (FY24:
INR557 million, FY23: INR180 million). Ind-Ra expects the working
capital to remain elevated in FY25. The company had an unrestricted
cash balance of INR154 million at FYE24. VEL has total debt
repayment obligations of INR584 million over FY25-FY26.
Weak Credit Metrics: The company's credit metrics improved
year-on-year in FY24 due to an improvement in the scale of
operations; however, they remained weak. The interest coverage
ratio (EBIDTA/interest) improved to 1.3x in FY24 (FY23: negative
1.1x; FY22: negative 0.9x) and the net adjusted leverage (including
corporate guarantees) to 3.9x (FY20: 5.5x). However, VEL has
availed a long-term loan of INR1,050 million in FY25 and is further
planning to avail a term loan of INR780 million-950 million during
the year for working capital purposes. Ind-Ra expects the interest
coverage ratio to remain in the range of 1x-1.3x over FY25 and
FY26; the net leverage to remain elevated in FY25 and FY26.
Inherent Industry Risk: VEL is an engineering, procurement and
construction (EPC) player exposed to high industry competition,
delays in the realization of receivables, project delays, cost and
timeline overruns and litigation. Since a majority of the existing
order book is concentrated in the transmission and distribution
sector, the company is exposed to cyclicality this sector. Also,
any pressure on the cash flows of the counterparties could
adversely impact VEL's collections.
Robust Order Book: After muted order inflows over FY20-FY22, the
company's order inflows picked up substantially from 4QFY23. VEL
had order inflows of INR10 billion each in FY24 and FY23. The
company's order book stood at INR17.8 billion at end-June 2024
(FYE23: INR12.65 billion, FY22: INR4.3 billion), leading to a
revenue visibility of 5.3x of FY24's revenue (FY23: 7.7x, FY22:
2.5x). Out this order book, over 70% was from the project division
of the company, which is majorly into the electrification of rural
villages, while the rest is from the manufacturing of transformers,
conductors and related products. The rural electrification projects
are with Gujarat discoms (INR8.04 billion) followed by PGCIL
(INR2.35 billion) and Meghalaya (INR1.9 billion). These projects
have to be delivered by November 2025. Apart from this, VEL has L1
position of INR3.16 billion RE projects in Gujarat discoms.
Improving Operating Performance: The operational performance of the
company improved in FY24 after deteriorating over FY20-FY23 on
account of a decline in export orders and a slower execution of its
order book. In FY24, VEL's execution grew 2.2x to INR3,618 million
owing to a healthy order book. While 57% of the revenues came from
executing EPC projects (up 137% yoy), supply contracts' execution
(domestic and exports) grew 92% to INR1,424 million in FY24. Nearly
50% of the EPC projects were undertaken through back-to-back
subcontracting due to limited working capital limits with VEL.
Moreover, the EBITDA margins, which were negative over FY21-FY23,
improved to 11.2% in FY24. The improvement was due to a reduction
in the raw material costs along with controlled fixed costs. It was
also owing to an increased execution of high-margin contracts.
Strong Counterparty Profile: Gujarat discoms (Paschim Gujarat Vij
Company Ltd. and Uttar Gujarat Vij Company Limited, Dakshin Gujarat
Vij Company Limited, Madhya Gujarat Vij Company Limited), which are
graded at A+ in the 12th Annual Integrated Rating and Ranking of
Power Distribution Utilities by the Ministry of Power and Power
Finance Corporation Limited, accounted for 65% of the orders of the
RE order book and 45% of the overall order book at end-June 2024.
The work on most of these projects has already been commenced.
Also, as the projects are scheduled to be delivered through 2025,
the execution of VEL is likely to pick up pace in FY25.
Furthermore, VEL has two L1 projects of INR3,168 million from Uttar
Gujarat Vij Company Limited.
Experienced Promoter: VEL's promoter has over four decades of
experience in the manufacturing of electrical equipment with a
specialization in transformer design.
Liquidity
Poor: The company had an unrestricted cash balance of INR154
million at FYE24. VEL has total debt repayment obligations of
INR584 million over FY25-FY26. VEL's average monthly utilization of
its fund-based working capital limits stood over 127% and that of
its non-fund-based limits stood at 77% for the 12 months ended June
2024. The average utilization of fund-based limits reduced to 95%
over April-June 2024, post the regularization of the limits.
Furthermore, certain fund- and non-fund-based limits are on run
down. VEL is planning to enhance its fund-based limits by INR920
million and its non-fund-based limits by INR6,000 million in FY25.
Rating Sensitivities
Negative: Any delay in the tie-up of additional working capital
limits and/or delays in the recovery of receivables leading to
further deterioration in the liquidity could lead to a negative
rating action.
Positive: An improvement in the liquidity profile while
maintaining/improving the credit metrics on a sustained basis could
lead to a positive rating action.
About the Company
VEL, incorporated in 1980, manufactures electricity distribution
transformers and erects transmission and distribution lines. In
2005, it entered the business of execution of rural electrification
projects. It has a transformer production site in Haridwar and a
conductor manufacturing facility in Roorkee.
=====================
N E W Z E A L A N D
=====================
4M BEL AIR: Court to Hear Wind-Up Petition on Sept. 27
------------------------------------------------------
A petition to wind up the operations of 4M Bel Air Limited will be
heard before the High Court at Auckland on Sept. 27, 2024, at 10:45
a.m.
The Commissioner of Inland Revenue filed the petition against the
company on July 31, 2024.
The Petitioner's solicitor is:
Cloete Van Der Merwe
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
PIKIOTERANGI TRANSPORT: Court to Hear Wind-Up Petition on Sept. 10
------------------------------------------------------------------
A petition to wind up the operations of Pikioterangi Transport
Limited will be heard before the High Court at Rotorua on Sept. 10,
2024, at 10:45 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on July 25, 2024.
The Petitioner's solicitor is:
Christina Anne Hunt
Inland Revenue Department, Legal and Technical Services
21 Home Straight
PO Box 432
Hamilton
PUMP SAFE: BDO Tauranga Appointed as Liquidators
------------------------------------------------
Paul Thomas Manning and Thomas Lee Rodewald of BDO Tauranga on Aug.
22, 2024, were appointed as liquidators of Pump Safe Limited.
The liquidators may be reached at:
C/- BDO Tauranga Limited
Level 1, The Hub
525 Cameron Road
PO Box 15660
Tauranga
SUCCEED DEVELOPMENT: Creditors' Proofs of Debt Due on Sept. 30
--------------------------------------------------------------
Creditors of Succeed Development Limited and Shalez Hospitality
Limited are required to file their proofs of debt by Sept. 30,
2024, to be included in the company's dividend distribution.
Succeed Development Limited commenced wind-up proceedings on Aug.
19, 2024.
Shalez Hospitality Limited commenced wind-up proceedings on Aug.
26, 2024.
The company's liquidator is:
Pritesh Patel
PO Box 23296
Manukau 2241
TJ BROTHERS: Court to Hear Wind-Up Petition on Sept. 10
-------------------------------------------------------
A petition to wind up the operations of TJ Brothers Construction
Limited will be heard before the High Court at Hamilton on Sept.
10, 2024, at 10:45 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on July 22, 2024.
The Petitioner's solicitor is:
Christina Anne Hunt
Inland Revenue Department, Legal and Technical Services
21 Home Straight
PO Box 432
Hamilton
===============
P A K I S T A N
===============
PAKISTAN: Moody's Ups Issuer & Sr. Unsecured Debt Ratings to Caa2
-----------------------------------------------------------------
Moody's Ratings has upgraded the Government of Pakistan's local and
foreign currency issuer and senior unsecured debt ratings to Caa2
from Caa3. Moody's have also upgraded the rating for the senior
unsecured MTN programme to (P)Caa2 from (P)Caa3. Concurrently, the
outlook for Government of Pakistan is changed to positive from
stable.
The upgrade to Caa2 reflects Pakistan's improving macroeconomic
conditions and moderately better government liquidity and external
positions, from very weak levels. Accordingly, Pakistan's default
risk has reduced to a level consistent with a Caa2 rating. There is
now greater certainty on Pakistan's sources of external financing,
following the sovereign's staff-level agreement with the IMF on
July 12, 2024 for a 37-month Extended Fund Facility (EFF) of $7
billion. Moody's expect the IMF Board to approve the EFF in the
next few weeks. Pakistan's foreign exchange reserves have about
doubled since June 2023, although they remain below what is
required to meet its external financing needs. The country remains
reliant on timely financing from official partners to fully meet
its external debt obligations. Pakistan's Caa2 rating continues to
reflect Pakistan's very weak debt affordability, which drives high
debt sustainability risk. Moody's expect interest payments to
continue absorbing about half of government revenue over the two to
three years. The Caa2 rating also incorporates the country's weak
governance and high political uncertainty.
The positive outlook reflects a balance of risks skewed to the
upside. It captures the possibility that the government is able to
further lower its government liquidity and external vulnerability
risks, and achieve a better fiscal position than Moody's currently
expect, supported by the IMF programme. Sustained reform
implementation, including revenue-raising measures, can increase
the government revenue base and improve Pakistan's debt
affordability. A record of completing IMF reviews on a timely
manner would also allow Pakistan to continually unlock financing
from official partners, sufficient to meet its external debt
obligations and support further rebuilding of its foreign exchange
reserves.
The upgrade to Caa2 from Caa3 rating also applies to the backed
foreign currency senior unsecured ratings for The Pakistan Global
Sukuk Programme Co Ltd. The associated payment obligations are, in
Moody's view, direct obligations of the Government of Pakistan. The
outlook for The Pakistan Global Sukuk Programme Co Ltd is
positive.
Concurrent to the action, Moody's have also raised Pakistan's local
and foreign currency country ceilings to B3 and Caa2 from Caa1 and
Caa3, respectively. The two-notch gap between the local currency
ceiling and sovereign rating is driven by the government's
relatively large footprint in the economy, weak institutions, and
high political and external vulnerability risk. The two-notch gap
between the foreign currency ceiling and the local currency ceiling
reflects incomplete capital account convertibility and relatively
weak policy effectiveness. It also takes into account material
risks of transfer and convertibility restrictions being imposed.
A List of Affected Credit Ratings is available at
https://urlcurt.com/u?l=R7uVZb
RATINGS RATIONALE
RATIONALE FOR THE UPGRADE TO Caa2
GOVERNMENT LIQUIDITY AND EXTERNAL VULNERABILITY RISKS HAVE REDUCED
FROM VERY HIGH LEVELS, BUT NOT ELIMINATED
Moody's earlier concerns over very high risks of a balance of
payments crisis materializing have diminished, although risks
remain elevated as Pakistan continues to rely on timely and
sufficient disbursement of financing from official partners.
There is now greater certainty over Pakistan's sources of financing
to meet its needs over the next two to three years, following the
IMF staff-level agreement reached on July 12, 2024. Moody's expect
the IMF Board to give its approval for the new 37-month Extended
Fund Facility (EFF) worth $7 billion in the next few weeks. The IMF
programme is likely to support Pakistan in unlocking additional
financing from other multilateral and bilateral partners.
Pakistan's foreign exchange reserves have also about doubled since
June 2023, owing to the country's creditable performance under the
previous nine-month IMF Standby-Arrangement (SBA) that ended in
April 2024, which has supported macroeconomic stability and driven
renewed external financing for the country. Pakistan's foreign
exchange reserves stood at $9.3 billion as of August 16, 2024,
equivalent to just below two months imports. This compares with
only $4.4 billion available at end-June 2023.
Nonetheless, Pakistan's foreign exchange reserves are well below
what is required to meet its needs, underscoring the importance of
steady progress with the IMF programme to continually unlock
financing to meet its needs. Moody's estimate Pakistan's external
financing needs to be about $26 billion for fiscal 2025 (ending
June 2025), comprising of around $22 billion of external principal
debt repayments in fiscal 2025 and another $4 billion (about 1% of
GDP) to finance the current account deficit. Pakistan's financing
needs for fiscal 2026-2027 will be similar.
Moody's expect Pakistan to be able to cover its financing needs
with funding from official partners, although there remains
uncertainty around the government's ability to sustain reform
implementation. The coalition government formed after elections
held in February 2024 may not have sufficiently strong electoral
mandate to continually implement revenue-raising measures without
stoking social tensions. Slippages in reform implementation or
results could lead to delays in or withdrawal of financing support
from official partners.
GRADUAL FISCAL CONSOLIDATION UNDERWAY, ALTHOUGH DEBT AFFORDABILITY
REMAINS VERY WEAK
Gradual fiscal consolidation is underway, but Moody's expect
Pakistan's debt affordability to remain very weak, driving high
debt sustainability risk. With a large share of revenue going
towards interest payments, the government's ability to spend on
essential social and economic needs will remain constrained.
Interest payments consumed about 60% of government revenue in
fiscal 2024. Moody's expect interest payments to account for 55-60%
of government revenue in fiscal 2025, before declining to about
45-50% in fiscal 2026-2027. At these levels, Pakistan's interest
payments as a share of government revenue will still be one of the
highest among rated sovereigns.
Pakistan's government debt to GDP is high, albeit slowly declining,
on the back of high nominal GDP growth and modest fiscal
consolidation. The government seeks to achieve significant fiscal
consolidation mainly through increases in tax revenue, which it
projects would be 40% higher in fiscal 2025 than a year ago in
nominal terms. The government estimates its fiscal deficit at 5.9%
of GDP and primary surplus at 2.0% for fiscal 2025 (fiscal 2024:
6.8% deficit and 0.9% surplus, respectively).
Moody's expect the pace of fiscal consolidation to be slower than
the government envisages, as large and successive tax increases
could drive an increase in social tensions, leading the government
to temper its pace of fiscal consolidation. Moody's project a
larger fiscal deficit of about 6.5% of GDP and smaller primary
surplus of around 0.5-1% of GDP for fiscal 2025.
RATIONALE FOR POSITIVE OUTLOOK
The positive outlook reflects a balance of risks skewed to the
upside. It captures the possibility that the government further
reduces its government liquidity and external vulnerability risks,
and achieves a better fiscal position than Moody's currently
expect.
A building track-record of reforms that effectively stabilize the
economy and public finances could unlock more financing for
Pakistan, securing the sovereign's external position more robustly
than Moody's currently expect. In addition, the governments of
Saudi Arabia and the United Arab Emirates have collectively pledged
to invest $15 billion in Pakistan, which if realized, would
significantly bolster Pakistan's foreign exchange reserves.
Moreover, the government aims to broaden its revenue base, through
measures that include raising taxes on the agriculture, retail and
export sectors. If these measures are implemented and sustained,
they may improve Pakistan's debt affordability more significantly
than Moody's forecast.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS
Pakistan's CIS-5 credit impact score reflects its very high
exposure to social and environmental risks, as well as its weak
governance profile. Pakistan's weak governance and institutions and
its very weak fiscal strength constrain the government's capacity
to address environment and social risks.
Pakistan's E-5 issuer profile score for environmental risk reflects
Pakistan's vulnerability to climate change and the limited supply
of clean, fresh and safe water. Pakistan drains a significant
proportion of its scarce fresh water resources every year, and a
large share of its population is exposed to unsafe drinking water.
Water utility services tend to be intermittent, because of high
leakage levels and limited supply. The inadequate quality of
drinking water has health and economic consequences for Pakistan,
such as contributing to stunting which undermines human capital.
With varied climates across the nation, Pakistan is significantly
exposed to extreme weather events, including tropical cyclones,
drought, floods and extreme temperatures. Vulnerability to extreme
climate events can create significant economic, fiscal and social
costs for the sovereign, as demonstrated by the severe floods that
occurred in 2022.
Pakistan has a S-5 issuer profile score for social risk. Very low
incomes as well as limited access to quality healthcare, basic
services, housing and education, especially in rural areas,
together with safety concerns, are important social issues. Social
risks have increased alongside persistent upward pressures on
inflation. Households are likely to continue facing difficult
economic conditions in the foreseeable future. As a significant
share of revenue goes towards interest payments, it will
increasingly constrain the government's capacity to service its
debt while also meeting the population's essential social spending
needs.
Pakistan has a G-4 issuer profile score for governance risk.
International surveys of various indicators of governance, while
showing some early signs of improvement, continue to point to weak
rule of law and control of corruption, as well as limited
government effectiveness. Fiscal policy effectiveness is
particularly low, resulting in a persistently narrow revenue base
that constrains the government's capacity to address the country's
needs.
GDP per capita (PPP basis, US$): 6,791 (2023) (also known as Per
Capita Income)
Real GDP growth (% change): -0.2% (2023) (also known as GDP
Growth)
Inflation Rate (CPI, % change June/June): 29.4% (2023)
Gen. Gov. Financial Balance/GDP: -7.7% (2023) (also known as
Fiscal Balance)
Current Account Balance/GDP: -1% (2023) (also known as External
Balance)
External debt/GDP: 36.8% (2023)
Economic resiliency: ba3
Default history: No default events (on bonds or loans) have been
recorded since 1983.
On August 23, 2024, a rating committee was called to discuss the
rating of the Pakistan, Government of. The main points raised
during the discussion were: The issuer's economic fundamentals,
including its economic strength, have not materially changed. The
issuer's institutions and governance strength, have not materially
changed. The issuer's fiscal or financial strength, including its
debt profile, has materially increased. The issuer's susceptibility
to event risks has not materially changed.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
FACTORS THAT COULD LEAD TO AN UPGRADE
The rating would likely be upgraded if Pakistan's government
liquidity and external vulnerability risks decreased more
significantly and durably than Moody's currently expect. This could
come from a record of completing IMF reviews in a timely manner
that indicates the government's ability to sustain reform
implementation, leading to continued inflows of external financing
from official partners sufficient to meet its needs while
supporting some rebuilding of the foreign exchange reserves. A
record of fiscal consolidation on a sustained basis, including
through implementing revenue-raising measures, pointing to a
meaningful improvement in debt affordability would also be credit
positive.
FACTORS THAT COULD LEAD TO A DOWNGRADE
The outlook would likely be changed to stable if further reductions
in government liquidity and external vulnerability risks are
unlikely to materialize. This could come from signs that the
sovereign is unable to drive consistent increases in its foreign
exchange reserves, while also meeting its external debt
obligations.
The rating would likely be downgraded if there were evidence of a
renewed increase in government liquidity or external vulnerability
risks. This could come from financing strains due to delays in or
withdrawal of support from multilateral and bilateral partners. An
increase in social and political risks that disrupted policymaking
and undermined Pakistan's ability to secure financing would also be
credit negative.
The principal methodology used in these ratings was Sovereigns
published in November 2022.
=====================
P H I L I P P I N E S
=====================
AMA RURAL: PDIC Still Awaits Bank's Reply on Meeting with CA
------------------------------------------------------------
The Philippine Deposit Insurance Corporation (PDIC) said that it is
still awaiting response from AMA Bank on its request for a meeting
together with the designated Sheriff of the Court of Appeals (CA),
to facilitate the turnover of the funds.
On May 24, 2023, the PDIC already prepared a Landbank Manager's
Check representing the total amount of funds and interest earned,
net of expenses, and was ready to turn over the funds to AMA Bank.
The PDIC was, however, constrained to suspend the turnover pursuant
to the Resolutions of the CA dated July 5, 2023 and Feb. 6, 2024
that deferred the execution of the CA Decision dated Sept. 7, 2020,
as judicial courtesy to the Supreme Court (SC), upon which the
issue of AMA Bank's closure was pending at that time.
Earlier, based on agreed-upon protocols, the PDIC completed the
turnover of documents, records, and the branches to AMA Bank as of
July 13, 2023 in the presence of the CA-designated Sheriff upon the
PDIC's receipt of the March 1, 2023 Resolution of the SC.
Upon its receipt of the latest SC Resolution dated May 28, 2024,
the PDIC has written AMA Bank on July 30, 2024 for a meeting to
discuss the full turnover of the cash.
All the creditors and depositors are advised to directly
communicate with AMA Bank.
About AMA Rural Bank
AMA Rural Bank of Mandaluyong was a 13-unit rural bank with Head
Office located at No. 311, Shaw Blvd., Brgy. Hagdang Bato Libis,
Mandaluyong City. It has 12 branches located in Pasig City; Baguio
City; San Fernando City, La Union; Tuguegarao City, Cagayan;
Baliuag, Bulacan; San Fernando, Pampanga; Bacoor, Cavite; Cainta
and Morong in Rizal; Calamba City and San Pablo City in Laguna; and
Palo, Leyte.
Latest available records show that as of June 30, 2019, AMA Rural
Bank of Mandaluyong has 8,434 deposit accounts with total deposit
liabilities of PHP1.4 billion, of which 92.06% or PHP1.3 billion
are insured deposits.
The Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP)
prohibited AMA Rural Bank of Mandaluyong, Inc. from doing business
in the Philippines through MB Resolution No. 1705.D dated Nov. 7,
2019, which also directed the Philippine Deposit Insurance
Corporation (PDIC) as Receiver to proceed with the takeover and
liquidation of AMA Rural Bank of Mandaluyong. PDIC took over the
bank on Nov. 8, 2019.
=================
S I N G A P O R E
=================
AVPV WEST: Creditors' Proofs of Debt Due on Sept. 30
----------------------------------------------------
Creditors of AVPV West Logi SG Holding Pte. Ltd. are required to
file their proofs of debt by Sept. 30, 2024, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Aug. 20, 2024.
The company's liquidators are:
Chek Khai Juat
Tay Tuan Leng
c/o Tricor Singapore
9 Raffles Place
#26-01 Republic Plaza
Singapore 048619
FAR EAST MINING: Commences Wind-Up Proceedings
----------------------------------------------
Members of Far East Mining Pte Ltd on Aug. 22, 2024, passed a
resolution to voluntarily wind up the company's operations.
The company's liquidators are:
Abuthahir Abdul Gafoor
Yessica Budiman
144 Robinson Road
#14-02 Robinson Square
Singapore 068908
MAXDIN 3: PwC Appointed as Provisional Liquidators
--------------------------------------------------
Mr. Chan Kheng Tek and Mr. Sam Kok Weng of PricewaterhouseCoopers
Advisory Services on Aug. 28, 2024, were appointed as provisional
liquidators of Maxdin 3 Pte. Ltd.
The provisional liquidators may be reached at:
Chan Kheng Tek
Sam Kok Weng
PricewaterhouseCoopers
7 Straits View
Marina One, East Tower
Level 12
Singapore 018936
SHINHAN TECH-ENG: Creditors' Proofs of Debt Due on Sept. 23
-----------------------------------------------------------
Creditors of Shinhan Tech-Engineering Pte. Ltd. are required to
file their proofs of debt by Sept. 23, 2024, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Aug. 23, 2024.
The company's liquidators are:
Mr. Don M Ho
Mr. David Ho
c/o DHA+ pac
63 Market Street
#05-01A Bank of Singapore Centre
Singapore 048942
YONGNAM HOLDINGS: Court Enters Wind-Up Order
--------------------------------------------
The High Court of Singapore entered an order on Aug. 23, 2024, to
wind up the operations of Yongnam Holdings Limited and Yongnam
Engineering & Construction (Private) Limited.
The company's liquidators are:
Toh Ai Ling
Tan Yen Chiaw
Chan Kwong Shing, Adrian
KPMG Services
12 Marina View
#15-01, Asia Square Tower 2
Singapore 018961
=====================
S O U T H K O R E A
=====================
SOUTH KOREA: Sets Deadline for Lenders to Clean Up Property Loans
-----------------------------------------------------------------
Bloomberg News reports that South Korea's financial market
regulator has asked lenders with exposure to troubled real estate
project finance loans to finalise their cleanup plans by Sept. 6,
setting a tight deadline after growth in risky loans exceeded the
regulator's previous estimates.
Project finance exposure of all financial institutions stood at
KRW216.5 trillion or about US$162 billion as of June 2024, of which
at least KRW21 trillion, or 9.7%, was risky, the Financial
Supervisory Service (FSS), the South Korean financial watchdog,
said Aug. 29, Bloomberg discloses.
Three months ago, the regulator had expected only about 5% of the
loans to be stressed.
"The principle is to put projects on auction in case loans are
overdue for more than three months," Park Sang Won, deputy governor
at the FSS, told reporters at a briefing, adding that if the
government's plan goes ahead, it will improve the health of
financial institutions and restore the confidence in the real
estate project finance market, Bloomberg relays.
According to Bloomberg, a series of high-profile credit events
including a debt restructuring by distressed builder Taeyoung
Engineering & Construction Co earlier this year have kept
policymakers on high alert to stem any further scares from the
property sector.
Bloomberg relates that South Korean authorities said in May that
they would revamp criteria to evaluate the feasibility of real
estate project finance sites and support the restructuring of those
that no longer viable.
Projects where debt repayments are six months overdue would be put
up for sale under new guidelines, according to a statement by the
Financial Services Commission (FSC) and FSS at the time.
For sites assessed as "normal", the FSS will actively guide
financial companies to supply funds through maturity extensions to
ensure that business proceeds normally, deputy governor Park
added.
Of the total exposure, about KRW33.7 trillion were considered at
high risk of insolvency, and KRW21.0 trillion were found to be
problematic.
A default on project finance debt in 2022 by the developer of a
Legoland amusement park in South Korea caused short-term corporate
borrowing costs to surge to over a decade-high.
Spreads have since compressed back to levels before the crisis,
after policymakers rolled out measures worth more than US$66bil to
support the credit and property markets.
Delinquency rates for project finance loans climbed the most at
non-bank lenders, reaching 17.6% for securities firms in the first
quarter, according to the FSC in June.
Efforts to address souring property loans have been complicated by
rebounding home prices in the capital, a key concern for the Bank
of Korea, which held its key policy rate steady earlier this
month.
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