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T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Friday, October 25, 2024, Vol. 27, No. 215
Headlines
A U S T R A L I A
BOOSTED FIRE: Workers Chase More Than AUD1MM in Superannuation
BOYD PT: First Creditors' Meeting Set for Oct. 29
COMMTEL NETWORK: GenusPlus Group Completes CommTel Acquisition
MANUFACTION PTY: Second Creditors' Meeting Set for Oct. 30
NEXT GENERATION: ASIC Cancels AFS Licence Following Liquidation
PREMIUM ASSET: Second Creditors' Meeting Set for Oct. 29
QUEENSCLIFF BREWING: Second Creditors' Meeting Set for Oct. 29
RISBY COVE: Second Creditors' Meeting Set for Oct. 29
VEUVE VENTURES: Pinot & Picasso Franchisor Exits Administration
C H I N A
WANDA GROUP: Served With USD701.6 Million Demand Notice
I N D I A
ALKEY SYNTHETICS: CARE Keeps B- Debt Rating in Not Cooperating
ANNA BHAU: CARE Keeps D Debt Rating in Not Cooperating Category
ANYONE HOME: Voluntary Liquidation Process Case Summary
ASIATIC ELECTRICAL: Ind-Ra Cuts Bank Loan Rating to D
AVIGHNA DAIRY: CARE Keeps D Debt Ratings in Not Cooperating
CHANDRA MOULISHVAR: CRISIL Keeps D Ratings in Not Cooperating
DAKSHINAMURTHY AGRO: CRISIL Keeps B+ Ratings in Not Cooperating
DATTA KRUPA: CARE Keeps D Debt Rating in Not Cooperating Category
DOLCE PHARMACEUTICALS: CARE D Debt Rating in Not Cooperating
GANTAPAL ONKARLAL: Ind-Ra Withdraws BB Bank Loan Rating
GENESYS BIOLOGICS: CARE Cuts Rating on INR70cr LT Loan to D
GROWING OPPORTUNITIES: CARE Cuts Rating on INR102.68cr Loan to B
HARIDWAR HIGHWAYS: CARE Keeps D Debt Rating in Not Cooperating
HES INFRA: Ind-Ra Affirms BB+ Bank Loan Rating, Outlook Stable
INDIA CARTONS: CARE Keeps D Debt Rating in Not Cooperating
INDIA MEGA: CARE Keeps D Debt Rating in Not Cooperating Category
IRH PRESS: Voluntary Liquidation Process Case Summary
JADEJA INDUSTRIES: CARE Keeps D Debt Rating in Not Cooperating
JAINAM ALTERNATE: CRISIL Keeps B- Debt Ratings in Not Cooperating
JET AIRWAYS: Supreme Court Reserves Order on Liquidation Plea
JHARKHAND ROAD: CARE Keeps D Debt Rating in Not Cooperating
KG FLEXX: Ind-Ra Assigns BB Bank Loan Rating, Outlook Stable
M.G. INDUSTRIES: CRISIL Keeps D Debt Ratings in Not Cooperating
MOKSHA FOODS: CRISIL Keeps B+ Debt Ratings in Not Cooperating
N.S.P. TEX: CRISIL Keeps B Debt Ratings in Not Cooperating
NUMANS TECHNOLOGY: Voluntary Liquidation Process Case Summary
OM SAI: CARE Keeps D Debt Rating in Not Cooperating Category
POLYBLEND COLOUR: CARE Keeps B- Debt Rating in Not Cooperating
POOJA SPONGE: CRISIL Keeps D Debt Ratings in Not Cooperating
PRAJIT FOUNDATION: CRISIL Keeps D Debt Rating in Not Cooperating
RASHTRIYA ISPAT: Ind-Ra Withdraws D Term Loan Rating
SAIDEEP CARS: CRISIL Keeps C Debt Ratings in Not Cooperating
SCANIA STEELS: CRISIL Keeps D Debt Ratings in Not Cooperating
SIDWIN FABRIC: CRISIL Keeps B Debt Ratings in Not Cooperating
STERIMED INC: CRISIL Keeps B Debt Ratings in Not Cooperating
STERLING OIL: CARE Keeps D Debt Rating in Not Cooperating Category
SUDEEP EXIM: CRISIL Keeps B+ Debt Ratings in Not Cooperating
VENTO POWER: CARE Keeps D Debt Rating in Not Cooperating Category
J A P A N
[*] JAPAN: Zombie Companies May Finally Succumb to Bankruptcy
N E W Z E A L A N D
ADVANCE SCAFFOLD: Creditors' Proofs of Debt Due on Nov. 19
MACPHERSON GROUP: Creditors' Proofs of Debt Due on Nov. 29
SAV BUILDERS: Court to Hear Wind-Up Petition on Oct. 31
SMARTLIFE AV: Court to Hear Wind-Up Petition on Nov. 15
TUCKER-STEAD FITNESS: Creditors' Proofs of Debt Due on Nov. 18
P A K I S T A N
PAKISTAN: Finance Chief Sees 'Encouraging' China Debt Talks
S I N G A P O R E
ADAPTALIFT GSE: Creditors' Proofs of Debt Due on Nov. 18
BEYOND LUXURY: Commences Wind-Up Proceedings
GV AUTOMOBILE: Commences Wind-Up Proceedings
NUSANTARA ENERGY: Court Enters Wind-Up Order
STRAITS GREEN: Creditors' Proofs of Debt Due on Nov. 18
THAT CD SHOP: Creditors' Proofs of Debt Due on Nov. 18
- - - - -
=================
A U S T R A L I A
=================
BOOSTED FIRE: Workers Chase More Than AUD1MM in Superannuation
--------------------------------------------------------------
News.com.au reports that an Australian company has collapsed after
amassing a debt of AUD11 million as employees chase more than a
million owed in superannuation.
The 10-year-old business called Boosted Fire Pty Ltd specialised in
providing fire safety equipment and sprinkler services in the
commercial sector but in recent years had moved into residential.
Boosted Fire owed employees AUD1.26 million in superannuation while
unsecured creditors had outstanding debts of AUD4.5 million,
news.com.au discloses citing a report filed with ASIC.
The ATO was owed AUD2.5 million and the company had just AUD8,000
in the bank, administrators found.
Boosted Fire was placed into voluntary administration in September
but the company's assets had been licensed to a related entity
called Boosted Services four days prior to the administrators
appointment, a report for creditors filed with ASIC revealed.
According to news.com.au, employees were provided with letters of
offer to continue their employment under Boosted Services with all
accrued entitlements - except outstanding superannuation would not
be included.
However no documentation had been provided to the administrators
"substantiating the transfer of employment", insolvency firm Cor
Cordis which has been appointed to deal with the company's demise
noted in its report, news.com.au relays.
News.com.au says Booster Fire's director blamed "insufficient
cashflow" for the company's difficulties as a result of losses
incurred on materials used in fixed-price contracts following
significant price increases after the Covid pandemic and delays
with practical completion of projects.
It also blamed the breakdown of a relationship with another company
Fire Point, which issued a statutory demand for payment of debt
totalling AUD2.3 million.
But the administrators said there were other factors including the
Queensland business entering into unprofitable contracts and work
during and prior to the 2022 financial year resulting in
substantial losses being incurred totalling AUD4.5 million,
news.com.au relates.
"These losses appear to have been funded predominantly from
non-payment of trade creditors, superannuation and statutory
creditors as well as through refinances and increases in
borrowings," the report noted.
It also revealed that the company "appears to have been insolvent
in or around 30 June 2023" until their appointment on September 18,
news.com.au adds.
There may be a claim for insolvent trading against the director for
in "excess of AUD4.2 million" based on preliminary investigations,
but this is likely to increase, the report noted. Further
investigations were necessary, the report, as cited by news.com.au,
added.
Cor Cordis identified potential unfair preference claims in the
range of AUD400,000 to AUD600,000 which may result in money,
property or other benefits being recovered for creditors.
News.com.au adds that the creditor's report also identified
potential claims against the director and related entities for
Boosted Fire has also faced two winding-up proceedings including
from Fire Point Pty Ltd.
On September 16, the company's QBCC licence was also cancelled -
which was crucial to it being able to operate, the report noted.
Cor Cordis noted that the licence agreement has been varied
following the administrators' appointment to provide various
protections, reduce exposure to potential liabilities and provide a
better outcome to the company as a result of the continued
operations, news.com.au relays.
BOYD PT: First Creditors' Meeting Set for Oct. 29
-------------------------------------------------
A first meeting of the creditors in the proceedings of Boyd PT Pty
Ltd will be held on Oct. 29, 2024 at 10:30 a.m. via a Teams
videoconferencing facility.
Liam Bellamy and John Kukulovski of Mackay Goodwin were appointed
as administrators of the company on Oct. 18, 2024.
COMMTEL NETWORK: GenusPlus Group Completes CommTel Acquisition
--------------------------------------------------------------
GenusPlus Group Ltd on Oct. 23, 2024, announced that it has
completed the acquisition of CommTel Network Solutions Pty Ltd
following effectuation of a Deed of Company Arrangement (DOCA)
under Part 5.3A of the Corporations Act 2001 (Cth)1.
"GenusPlus will now integrate the CommTel business into its
expanded communications division and implement the transition of
the CommTel workforce to the GenusPlus Group. CommTel has numerous
multi-year contracts with Tier 1 customers through Master Supply
Agreements, Technical Support Agreements or Operational Services
Agreements, which provide it with recurring revenues," it said in a
statement.
GenusPlus' Managing Director David Riches commented: "We are
pleased to have completed this acquisition, which represents
an important opportunity for GenusPlus to increase the depth and
breadth of its communications service offering. We are
particularly pleased to be able to welcome the vast majority of the
CommTel workforce, including founders Robert Green and Gerald
Molenkamp, to the GenusPlus team, and look forward to working with
them to unlock the full potential of the CommTel business."
MarketScreener reports that GenusPlus Group agreed to acquire
CommTel Network for AUD6 million on Sept. 30, 2024. A cash
consideration of AUD6 million will be paid by GenusPlus Group. As
part of consideration, AUD6 million is paid towards common equity
of CommTel Network plus AUD7 million earnout based on 50% of pro
rata FY25 EBIT above AUD2 million and 50% of FY26 EBIT above AUD2.5
million. For the financial year ended 2024, CommTel Network
reported turnover of AUD64 million and operating income of AUD4
million.
According to MarketScreener, the transaction is subject to approval
of bankruptcy court and approval/consents of lenders/creditors. As
of Oct. 7, 2024, the deal recieved approval from the creditors of
CommTel Network. Completion expected by the end of October 2024.
CommTel Network Solutions Pty Ltd provides advanced and engineered
solutions for mission and business critical networks.
Andrew Lyall Knight and Sebastian David Hams of KordaMentha were
appointed as administrators of the company on Aug. 30, 2024.
MANUFACTION PTY: Second Creditors' Meeting Set for Oct. 30
----------------------------------------------------------
A second meeting of creditors in the proceedings of Manufaction Pty
Limited has been set for Oct. 30, 2024 at 11:30 a.m. at the offices
of KPT Restructuring, Suite 1 Level 20, 20 Bond Street, Sydney and
via teleconference.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Oct. 29, 2024 at 4:00 p.m.
Jason Tang of KPT Restructuring was appointed as administrator of
the company on Sept. 30, 2024.
NEXT GENERATION: ASIC Cancels AFS Licence Following Liquidation
---------------------------------------------------------------
The Australian Securities & Investments Commission (ASIC) on Oct.
18, 2024, cancelled the Australian financial services (AFS) licence
of Next Generation Advice Pty Ltd (in Liquidation). Next Gen's
licence was cancelled by ASIC after the Queensland Supreme Court
ordered the company be wound up on Aug. 23, 2024.
ASIC has specified that Next Gen must continue its membership of
the Australian Financial Complaints Authority (AFCA) until Oct. 17,
2025.
ASIC is aware that Next Gen, through its authorised
representatives, recommended investments to clients that included
Global Capital Property Fund Limited (in Liquidation) (GCPF) and
the Shield Master Fund. Further information regarding GCPF and
Shield, including important information for investors, is available
on ASIC's enforcement activities pages:
* United Global Capital Pty Ltd (in liquidation)
* Shield Master Fund
Next Gen operated a financial services business in Queensland which
held AFS licence no. 302947 since Sept. 14, 2006.
PREMIUM ASSET: Second Creditors' Meeting Set for Oct. 29
--------------------------------------------------------
A second meeting of creditors in the proceedings of Premium Asset
Services Pty Ltd has been set for Oct. 29, 2024 at 10:30 a.m.
online via Microsoft Teams.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Oct. 28, 2024 at 4:00 p.m.
Mohammad Mirzan Bin Mansoor and Damien Mark Hodgkinson of Olvera
Advisors were appointed as administrators of the company on Sept.
23, 2024.
QUEENSCLIFF BREWING: Second Creditors' Meeting Set for Oct. 29
--------------------------------------------------------------
A second meeting of creditors in the proceedings of Queenscliff
Brewing Pty Limited has been set for Oct. 29, 2024 at 11:30 a.m.
virtually via Zoom.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Oct. 28, 2024 at 4:00 p.m.
Scott Andersen and Nathan Deppeler of Worrells were appointed as
administrators of the company on Sept. 23, 2024.
RISBY COVE: Second Creditors' Meeting Set for Oct. 29
-----------------------------------------------------
A second meeting of creditors in the proceedings of Risby Cove
Management Pty Ltd has been set for Oct. 29, 2024 at 11:00 a.m. via
virtual meeting.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Oct. 28, 2024 at 4:00 p.m.
David Coyne and Peter Krejci of BRI Ferrier were appointed as
administrators of the company on Sept. 23, 2024.
VEUVE VENTURES: Pinot & Picasso Franchisor Exits Administration
---------------------------------------------------------------
Troy Dodds at The Western Weekender reports that Penrith-born paint
and sip business Pinot & Picasso has exited Administration, ending
uncertainty over the organisation's future.
As reported by the Weekender last month, Pinot & Picasso entered
Voluntary Administration and made seven people redundant,
attributing a reduction in discretionary consumer spending to the
decision.
The company's studios - including its Penrith location - continued
to operate.
On Oct. 18, the company exited Administration after a successful
vote on the Deed of Company Arrangement (DOCA) was tabled for
creditors, according to the Weekender.
"The Directors are thrilled for the next chapter of the company,"
Pinot & Picasso's Directors said in a statement.
"Hopefully this festive period regains momentum in the
discretionary spending businesses after an incredibly tough 2023
and 2024."
The business is hoping its more stable future combined with the
upcoming festive and party season will see strong growth in the
concept, the Weekender adds.
Veuve Ventures Pty Ltd and seven related entities appointed Sule
Arnautovic of Salea Advisory as voluntary administrator on Sept.
12, 2024. The seven related entities are: Pinot & Picasso Malvern
Pty Ltd, Bondi Arts & Crafts Supplies Pty Ltd, Veuve Queensland Pty
Ltd, Veuve Ventures Holdings No 2 Pty Ltd, Veuve Ventures South
Australia Pty Ltd, Veuve Victoria Pty Ltd, and Veuve Western
Australia Pty Ltd.
The entities act as master franchisors for 42 Pinot & Picasso
venues across Australia and New Zealand, and operate seven
company-owned stores.
=========
C H I N A
=========
WANDA GROUP: Served With USD701.6 Million Demand Notice
-------------------------------------------------------
Yicai Global reports that Wanda Group has been slapped with a
payment demand for CNY5 billion (USD701.6 million) worth of share
buyback fees that its previous partner, retailer Suning.com, claims
it is owed by the cash-strapped Chinese property giant.
Yicai relates that Suning.com has raised arbitration against Wanda,
saying that it is owed these funds as Wanda breached a co-operation
deal signed by the two parties in 2018, Beijing-based Wanda said on
Oct. 22.
No further information was given about the alleged contract breach,
Yicai says. But the Nanjing-based retailer said its arbitration
request has been accepted by the China International Economic and
Trade Arbitration Commission and it is pending the launch of a
court trial.
Wanda's property management arm Wanda Commercial Management Group
went public in Hong Kong in 2014, but the firm's founder, Wang
Jianlin, thought that the stock was undervalued soon after its
flotation, Yicai relays. In September 2016, Wang took the firm
private to prepare for a listing on the mainland.
As part of the privatization deal, internet giant Tencent Holdings,
Suning Commerce Group, Sunac China, and e-retailer JD.com spent
CNY34 billion (USD4.8 billion) to purchase a 14 percent stake in
Wanda Commercial Management, Wanda said in January 2018. Of this,
Suning paid CNY9.5 billion (USD1.3 billion) for a 4 percent stake,
Yicai notes.
Another Wanda affiliate, Yonghui Superstores, was slapped with a
similar demand notice a week ago, according to Yicai. Dalian Yujin
Trading is seeking CNY3.6 billion (USD505 million) worth of stock
transfer fees and CNY218 million (USD30.6 million) in
contract-breach damages from Yonghui Superstores, the Fuzhou-based
supermarket chain said on Oct. 13, citing the notice it received
from the Shanghai International Economic and Trade Arbitration
Commission, informing it that Yujin Trading's application had been
accepted. Wang Jianlin holds joint liability for this fee.
Founded in 1988 and headquartered in Dongying, Shandong, Wanda
Group Co., Ltd. is a privately-owned company operating multiple
business segments including (1) refining (mainly refineries of
diesel and gasoline); (2) tire production; (3) the manufacture of
electric cables; (4) the manufacture of chemical products,
including methacrylate butadiene styrene and polyacrylamide; and
(5) electronics, including the production of polyimide film.
=========
I N D I A
=========
ALKEY SYNTHETICS: CARE Keeps B- Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Alkey
Synthetics Private Limited (ASPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 4.82 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated September 22,
2023, placed the rating(s) of ASPL under the 'issuer
non-cooperating' category as ASPL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
ASPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated August 7, 2024,
August 17, 2024 and August 27, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Incorporated in 1988, Alkey Synthetics Private Limited (ASPL) is
engaged in the dyeing of yarn. ASPL's plant is located Bhiwandi
(Maharashtra).
ANNA BHAU: CARE Keeps D Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Anna Bhau
Ajara Taluka Shetkari Sahkari Soot Girani Limited (ABATSSSGL)
continues to remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 11.85 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated October 3,
2023, placed the rating(s) of ABATSSSGL under the 'issuer
non-cooperating' category as ABATSSSGL had failed to provide
information for monitoring of the rating as agreed to in its Rating
Agreement. ABATSSSGL continues to be non-cooperative despite
repeated requests for submission of information through e-mails
dated August 18, 2024, August 28, 2024 and September 7, 2024 among
others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
ABATSSSGL is a co-operative society established in October 1979,
promoted by Mr. Amogh Wagh in the strength of General Manager. The
society is engaged in the business of cotton spinning with its sole
manufacturing unit located at Ajara, Maharashtra with the products
sold under the brand name 'Ajara Spin'.
ANYONE HOME: Voluntary Liquidation Process Case Summary
-------------------------------------------------------
Debtor: Anyone Home It Services Private Limited
SR. No. 201, Office No. D-103, Aristoliya,
17 1/2, Hadapsar, Pune, Pune City,
Maharashtra, India, 411028
Liquidation Commencement Date: October 7, 2024
Court: National Company Law Tribunal, New Delhi Bench
Liquidator: AKHIL CHADHA
AKHIL CHADHA & ASSOCIATES,
89, PUSHPANJALI APARTMENTS,
PLOT NO 10, SECTOR 4,
DWARKA, NEW DELHI-110078
EMAIL ID: CHADHAKHIL@GMAIL.COM
Last date for
submission of claims: November 11, 2024
ASIATIC ELECTRICAL: Ind-Ra Cuts Bank Loan Rating to D
-----------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Asiatic
Electrical & Switchgear Pvt. Ltd.'s bank facilities' ratings to
'IND D (ISSUER NOT COOPERATING)' from 'IND B+/Negative (ISSUER NOT
COOPERATING)'.
The detailed rating actions are:
-- INR150 mil. Fund-based working capital limits (Long-term/
Short-term) downgraded with IND D (ISSUER NOT COOPERATING)
rating;
-- INR150 mil. Non-fund-based working capital limits (Short-term)
downgraded with IND D (ISSUER NOT COOPERATING) rating; and
-- INR85.01 mil. Term loan (Long-term) due on January 31, 2023
downgraded with IND D (ISSUER NOT COOPERATING) rating.
Detailed Rationale of the Rating Action
The downgrade reflects delays in debt servicing by AESPL based on
the information available in the public domain. However, Ind-Ra
has not been able to ascertain the reason for the delays, as the
company has been non-cooperative.
The ratings continue to be maintained in non-cooperating category
in accordance with Ind-Ra's Guidelines on What Constitutes
Non-Cooperation.
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with ASEPL while reviewing the
ratings. Ind-Ra had consistently followed up with ASEPL over
emails, apart from phone calls. The issuer has also not 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 AESPL, as the agency does not have adequate
information to review the ratings. If an issuer does not provide
timely business and financial updates to the agency, it indicates
weak governance, particularly in 'Transparency of Financial
Information'. The agency may also consider this as symptomatic of a
possible disruption/distress in the issuer's credit profile.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. AESPL has been
non-cooperative with the agency since October 8, 2021.
About the Company
ASEPL designs, manufactures and sells a wide range of switchgear
products, including feeder pillars, distribution boards,
low-voltage cut-outs, fuse switches, fuse cut-outs, surge
arrestors, fuse boards and composite insulators.
AVIGHNA DAIRY: CARE Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Avighna
Dairy Products Private Limited (ADPPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.95 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 1.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated August 17,
2023, placed the rating(s) of ADPPL under the 'issuer
non-cooperating' category as ADPPL had failed to provide
information for monitoring of the rating as agreed to in its Rating
Agreement. ADPPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails dated July
2, 2024, July 12, 2024, July 22, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Dewas (Madhya Pradesh) based Avighna Dairy Products Private Limited
(ADPPL) was formed in 2007 as a private limited company by Mr.
Nitin Panchal, Mrs. Priya Panchal, Mr. Sunil Kumawat and Mrs. Kanta
Kumawat. The company is engaged in the business of processing of
milk and milk-based products.
CHANDRA MOULISHVAR: CRISIL Keeps D Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Sri Chandra
Moulishvar Spinning Mills Private Limited (SCMSM) continue to be
'CRISIL D/CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.09 CRISIL D (Issuer Not
Cooperating)
Cash Credit 10.00 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 7.75 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SCMSM for
obtaining information through letter and email dated September 9,
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 SCMSM, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SCMSM
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SCMSM continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Established in September 2004 by Mr M Ravichandran, SCMSM
manufactures hosiery yarn in Tirupur (Tamil Nadu).
DAKSHINAMURTHY AGRO: CRISIL Keeps B+ Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Sri
Dakshinamurthy Agro Industries Private Limited (SDMAIPL) continue
to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 35 CRISIL B+/Stable (Issuer Not
Cooperating)
Term Loan 28 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SDMAIPL for
obtaining information through letter and email dated September 9,
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 SDMAIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
SDMAIPL is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of SDMAIPL continues to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Incorporated in 2016, SDMAIPL is engaged into solvent extraction
and oil refinery. The firm is based in Hyderabad, Telangana.
DATTA KRUPA: CARE Keeps D Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Datta krupa
Roller Flour Mill Private Limited (DKRFMPL) continues to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 25.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated September 29,
2023, placed the rating(s) of DKRFMPL under the 'issuer
non-cooperating' category as DKRFMPL had failed to provide
information for monitoring of the rating as agreed to in its Rating
Agreement. DKRFMPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails dated August
14, 2024, August 24, 2024 and September 3, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Incorporated in 2005, Dattakrupa Roller Flour Mill Private Limited
(DRFM - part of Dattakrupa group) manufactures wheat products such
as atta, maida, suji, rawa and dal mills. The company's
manufacturing facility is located at Parbhani, Maharashtra.
DOLCE PHARMACEUTICALS: CARE D Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Dolce
Pharmaceuticals Private Limited (DPPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 11.75 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated September 18,
2023, placed the rating(s) of DPPL under the 'issuer
non-cooperating' category as DPPL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
DPPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated August 3, 2024,
August 13, 2024 and August 23, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Dolce Pharmaceutical Private Limited (DPPL) was incorporated in
1994 and was taken over in 2010 by Mr. Gopakumar P. Nair and Mrs.
Rakhi Gopakumar Nair who are currently the directors of the
company. DPPL is engaged in manufacturing sugar based pelletisation
and capsulation. The company operates its administration office and
plant situated at Tarapur, Boisar.
GANTAPAL ONKARLAL: Ind-Ra Withdraws BB Bank Loan Rating
-------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Shree Ganpatlal
Onkarlal Agrawal & Company's bank facilities' rating as follows:
-- The 'IND BB/Stable (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT
COOPERATING)' rating on the
INR180 mil. Fund-based working capital limit is withdrawn.
Detailed Rationale of the Rating Action
Ind-Ra is no longer required to maintain the rating, as the agency
has received no dues certificates from the lenders and a withdrawal
request from the issuer. This is consistent with Ind-Ra's Policy on
Withdrawal of Ratings. Ind-Ra will no longer provide analytical and
rating coverage for the company.
About the Company
Shree Ganpatlal Onkarlal Agrawal & Company was originally formed as
a proprietary concern by Ms. Geeta Devi Bindal in 1988. It was
later reconstituted as a partnership firm in FY09. The firm
provides coal transportation, loading, unloading and handling
services through its wide network of branches across India.
GENESYS BIOLOGICS: CARE Cuts Rating on INR70cr LT Loan to D
-----------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Genesys Biologics Private Limited (GBPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 70.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Downgraded from
CARE C
Vide its press release dated October 3, 2024; CARE Ratings Limited
(CARE Ratings) placed the rating(s) of GBPL under the 'issuer
non-cooperating' category as GBPL had failed to provide information
for monitoring the rating as agreed to in its rating agreement.
GBPL continues to be non-cooperative despite repeated requests for
submission of information through e-mail dated October 9, 2024,
among others. In line with extant SEBI guidelines, CARE Ratings has
reviewed the rating based on the best available information, which
however is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders, and public at
large) are hence requested to exercise caution while considering
these rating(s).
Ratings assigned to bank facilities of GBPL have been revised
considering delays in debt servicing as recognised from lender's
feedback and publicly available information.
Analytical approach: Standalone
Outlook: Not applicable
Rationale and key rating drivers
Key weakness
* Delay in debt servicing: There has been delay in interest
servicing debt obligations leading to poor liquidity position.
Incorporated 2014, GBPL is a privately held biotechnology company
with dedicated focus on Research and Development (R&D) of Insulin
Biosimilars derived from indigenously developed process and
customised manufacturing platform. This is capable of yielding all
Insulin variants such as Glargine (Long Acting), Aspart (Rapid
Acting), Lispro (Short Acting) at its pilot facility in Hyderabad.
GBPL has well-equipped R&D and pilot scale facility at Genome
Valley, Biotech Park, Shameerpet Hyderabad with the built-up area
of five acres and secured additional five acres of land for
manufacturing facility for commercial production.
The company successfully completed toxicology studies (Pre-Clinical
Studies) for four products and progressing towards clinical trial
approvals in India. One of the products – Glargine, successfully
completed Clinical Trails Phase – I in India and Phase – III
Clinical trials, which was expected to be completed by December
2022 is delayed due to appointment of new Contract research
organisation (CRO) and approvals from authorities. Genesys is
expected to complete trials by February 2024 and commercial
operations can be started from June 2024.
GROWING OPPORTUNITIES: CARE Cuts Rating on INR102.68cr Loan to B
----------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Growing Opportunities Consultants Private Limited (GOC), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 102.68 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Downgraded from CARE BB-;
Stable
Long-term bank
facilities - Withdrawn@
@ Withdrawal due to transfer of all assets and liabilities of the
company following a business transfer agreement with Pahal
Financial Services Private Limited.
Rationale and Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated March 10, 2021,
placed the rating(s) of GOC under the 'issuer non-cooperating'
category as GOC had failed to provide information
for monitoring of the rating. GOC continues to be non-cooperative
despite repeated requests for submission of information through
e-mails dated June 4, 2024, June 14, 2024, and June 24, 2024.
In line with the extant SEBI guidelines, CARE Ratings has reviewed
the rating based on best available information, which however, in
its opinion is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and public at
large) are hence requested to exercise
caution while using above rating(s).
Ratings have been revised considering business transfer agreement
(BTA) with Pahal Financial Services Private Limited (PFSPL) and
subsequently surrendering the certificate of registration with RBI
as the company exited the Non-Banking Financial Institution (NBFI)
business. Ratings also factor in the increase in losses in FY23.
CARE Ratings has withdrawn the rating assigned to bank facilities
(term loan) of GOC with immediate effect consequent to its transfer
to PFSPL. Transfer of facilities was due to business transfer
agreement with PFSPL and there was no term loan outstanding per
audited financials as on March 31, 2023.
Analytical approach: Standalone
Detailed description of key rating drivers
At the time of last rating on July 20, 2023, following were rating
strengths and weaknesses (updated with information available from
Registrar of Companies (FY23 [refers to April 1 to March 31]
audited financials and other public information).
Key Weaknesses
* Scale of operations: The company's total assets declined in FY23
and stood at INR31 crore as on March 31, 2023, against INR126 crore
as on March 31, 2022, majorly considering business transfer
agreement for assets and liabilities from GOC to PFSPL.
* Resource profile: The company did not have short term or long
term borrowings outstanding as on March 31, 2023, as a result of
the business transfer agreement with PFSPL.
* Moderation in asset quality in FY22: The company's asset quality
deteriorated in FY22. Portfolio at risk (PAR) over 30 days and PAR
over 90 days stood at 25.83% and 20.39% respectively as on March
31, 2022, against 15.25% and 8.64 % respectively as on March 31,
2021.
* Losses reported in FY23: The company reported a loss of INR12.72
crore on total income of INR6.61 crore in FY24 against loss of
INR10.18 crore on total income of INR24.08 crore in FY23. Increase
in losses in FY23 was primarily considering losses recognised due
to business transfer amounting to INR19.58 crore in FY23.
Key Strengths
* Experienced promoters and senior management team: GOC is promoted
by Dia Vikas Capital Private Limited (Dia Vikas) and four Mutual
Benefit Trusts (MBT). Dia Vikas is a subsidiary of Opportunity
International –Australia. Dia Vikas was started in 2008 as a
social investment fund of OI and primarily invests in the
microfinance sector in India. It provides loans and equity funding
and management support to the microfinance institutions. GOC has
experienced senior management team in microfinance, which has been
associated with the company since inception.
* Adequate loan appraisal and risk management systems: GOC operates
under joint liability group (JLG) model with defined credit
appraisal mechanisms that include client selection, documents
verification, group training and recognition tests, loan
sanctioning and disbursement. It has also improved credit
discipline among borrowers through centre meetings, training
programs, proper documentation to ensure smooth functioning of its
operations. GOC has reasonable MIS and IT systems to enable
day-to-day activities, where branches are connected with head
office through network. The MIS is well-integrated with accounting
systems of the company. Since all branches are well-connected with
HO, tracking all information such as group formation, enrolment,
disbursement, and collections, among others is facilitated. Various
reports such as branch wise debit-credit reports, daily collection
report, overdue and PAR reports, Audit reports can be generated
through MIS on a real time basis.
* Adequate capitalization: The company's capitalisation remains
adequate with total capital adequacy ratio (CAR) of 50.47% as on
March 31, 2022, against 43.36% as on March 31, 2021. Improvement in
capital adequacy levels is majorly considering reduced loan
portfolio.
GOC was an NBFC registered with the RBI as a non-deposit taking
loan company in 2006. The company received approval from RBI for
NBFC-MFI in April 2015. The company's registration was cancelled by
the RBI in March 2024 as they surrendered their certificate of
registration to RBI as the company exited non- banking financial
institution (NBFI) business. GOC is held by Dia Vikas Capital
Private Limited (the Indian Investment arm for Opportunity
International - 49.38%), 4 Mutual Benefit Trusts (MBT- 49.41%) and
others (1.21%) as on March 31, 2021.
HARIDWAR HIGHWAYS: CARE Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Haridwar
Highways Projects Limited (HHPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 981.09 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated August 4, 2023,
placed the rating(s) of HHPL under the 'issuer non-cooperating'
category as HHPL had failed to provide information for monitoring
of the rating as agreed to in its Rating Agreement. HHPL continues
to be non-cooperative despite repeated requests for submission of
information through e-mails dated June 19, 2024, June 29, 2024 and
July 9, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
HHPL is a special purpose vehicle (SPV) promoted by Era Infra
Engineering Ltd and OJSC- Sibmost (Sibmost) for augmentation of
2-lane carriageway of the existing section of NH-58 from km 131.0
to km 211.0 to a 4-lane dual carriageway from Muzaffarnagar to
Haridwar in the state of Uttar Pradesh & Uttarakhand under National
Highways Development Programme (NHDP) Phase III of NHAI on Design,
Build, Finance, Operate & Transfer (Toll) basis.
HES INFRA: Ind-Ra Affirms BB+ Bank Loan Rating, Outlook Stable
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has taken the following rating
actions on HES Infra Pvt Ltd and its debt instruments:
-- Issuer rating affirmed; Outlook revised to Stable with IND
BB+/Stable rating;
-- INR900 mil. Fund-based working capital limits affirmed;
Outlook revised to Stable with IND BB+/Stable/IND A4+ rating;
-- INR140.7 mil. Working capital term loan due on FY28 affirmed;
Outlook revised to Stable with IND BB+/Stable/IND A4+ rating;
-- INR8.020 bil. Non-fund-based working capital limits affirmed;
Outlook revised to Stable with IND BB+/Stable/IND A4+ rating;
-- INR250 mil. Proposed fund-based working capital limits
affirmed; Outlook revised to Stable with IND BB+/Stable/IND
A4+ rating; and
-- INR2.890 bil. Proposed non-fund-based working capital limits
affirmed; Outlook revised to Stable with IND BB+/Stable/IND
A4+ rating.
Detailed Rationale of the Rating Action
The Outlook revision to Stable from Negative and affirmation
reflect an improvement in HES Infra's liquidity position post debt
repayment of INR0.69 billion in FY24, leading to significant
balance sheet deleveraging. Furthermore, the agency takes comfort
from the commencement of Chhindwara project, Madhya Pradesh (35% of
outstanding order book) and receipt of funds from Telangana over
FY24 and 1QFY25, leading to cash realization. Although the pace of
project execution remains slow in larger projects, Ind-Ra takes
comfort from the land handover and the commencement of Chhindwara
and Badnawar projects in Madhya Pradesh, and lower repayments of
INR0.41 billion in FY25 (FY24: INR 69.8 billion), of which INR0.24
billion was repaid in 1HFY25. Ind-Ra will monitor the execution of
Chhindwara, Badnawar and Palamuru Rangareddy Lift Irrigation Scheme
(PRLIS) projects over 2HFY25 for sustainable execution pace and
cash inflows.
Detailed Description of Key Rating Drivers
Working Capital Intensive Operations; Stretched Liquidity: HES
Infra had unrestricted cash and cash equivalents of INR0.07 billion
at end-June 2024 (FYE24: INR0.07 billion). The company's average
use of the fund-based and the non-fund-based working capital limits
(adjusted for limits unavailable due to pending security creation)
stood at 85% and 90%, respectively, in the 12 months ended August
2024, reflecting high utilization on a continued basis. The company
has large term loan obligations of INR0.40 billion in FY25 and
INR0.14 billion in FY26. The net working capital cycle as a
percentage of revenue increased to 35% in FY24 (FY23: 28%), mainly
due to an increase in trade receivables, particularly from
Telangana projects as well as certain private counterparties. An
improvement in the pace of execution as well as receipt of balance
receivables from the government of Telangana and/or private
counterparties is important for aiding short-term liquidity. While
the company realized INR1.57 billion of receivables from the state
government of Telangana in 1QFY25, it expects to receive another
INR2.3 billion over October-November 2024, including INR1.1 billion
towards goods and services tax change in law (CIL), which has been
approved by the state department. Ind-Ra draws comfort from the
approval of CIL and the payment track record over 1QFY25 and will
monitor the inflows, which could strengthen the liquidity required
towards both debt servicing and faster execution of projects.
For the non-fund-based limits, HES Infra provides long-term bank
guarantees (BGs) due to a long gestation period of projects. Also,
a large portion of its order book comprises of slow-moving
projects, leading to locking-up of limits. However, the process of
complying with the stipulated security conditions to get full
limits released from the existing banking consortium is under
process and likely to be completed in 3QFY25. Ind-Ra expects this
to ease out the non-fund based limits utilization and support
bidding/orderbook building. Ind-Ra believes the availability of
additional BGs shall be vital for the company to bid/execute new
projects.
Contingent Liabilities: BGs worth INR250 million are presently
under arbitration with Narmada Valley Development Authority, state
government of Madhya Pradesh, on account of two projects awarded in
2012. Management has explained that land has not yet been provided
in these projects but Narmada Valley Development Authority has
notified to invoke the BGs on account of lack of work progress. The
same has been appealed by the company and stayed by the High Court
of Telangana; the process is under arbitration. Further, management
has stated that the aforesaid BGs are backed by 100% cash margin,
which sets off the banking exposure.
Sustained Satisfactory Credit Metrics, Easing of Repayment
Obligations: The net leverage including unsecured loans (net
debt/EBITDA) improved to 0.89x in FY24 (FY23: 1.38x), largely due
to a reduction in the long-term debt to INR0.75 billion from
INR1.38 billion while the interest coverage (EBITDA/gross interest)
remained broadly stable at 4.66x (4.58x). Furthermore, the
repayment profile eased in FY25, with a scheduled repayment of
INR0.41 billion (FY24: INR69.8 billion), of which INR0.24 billion
has been repaid in 1HFY25.
Strong but Concentrated Order Book : The company had a total
outstanding order book of INR90.77 billion as on 30 June 2024 (5.6x
of FY24 revenue). The company largely undertakes irrigation
projects; about 90% of the orders were from irrigation/dam segment
over the last two-to-three years. Geographically, the order book is
well diversified with Madhya Pradesh accounting for 54% of the
orders, followed by Telangana (24%), Andhra Pradesh (14%),
Uttarakhand (3%) and the balance from Karnataka, Uttar Pradesh,
Himachal Pradesh, and Tamil Nadu. The counterparty exposure is
largely towards state governments, which account for about 96% of
the orders, while the balance is from central public sector
undertakings and corporates. Typical to the large scale nature of
irrigation projects, the top five projects together comprise of 70%
of the order book, and Ind-Ra understands that picking up of steady
execution pace and payment receipt in these projects is critical to
sustain the revenue profile, along with improving the liquidity.
The handover of land in the top two projects - Chhindwara and
Badnawar in Madhya Pradesh in the last one-to-two quarters as well
as realization of bulky receivables in Telangana projects have
enhanced the business and liquidity profile. Ind-Ra will monitor
the pick-up of execution in these large projects over the next
one-to-two quarters.
Furthermore, the company has INR24.96 billion worth of orders as on
30 June 2024 from the state government of Andhra Pradesh. The
execution of these orders was put on hold for the last few years;
however, the management expects these order to be revalidated and
execution to commence from 3QFY25/4QFY24 with the completion of
state elections.
Execution Remains Modest in 1HFY25, Although Likely to Pick up over
Remainder FY25 : The company executed projects of about INR4.5
billion in 1HFY25, including INR2.5 billion-3 billion as unbilled
revenue. Management expects the balance billing by October 2024.
Land for its major Madhya Pradesh projects was handed over in
1QFY25-2QFY25 and accordingly the management has indicated that it
expects the execution to pick up pace over the balance of FY25 and
expects to book INR1 billion-1.3 billion cumulatively from these
projects in FY25. Management also expects works to start in PRLIS
Package-18by end-3QFY25 and Andhra Pradesh works to start over
3QFY25-4QFY25. Furthermore, the agency understands that typically
execution in the first half of the year is lower and picks up pace
in the second half. Considering all the above factors, the
execution of the key projects in FY25 is a key rating monitorable.
Liquidity
Stretched: HES Infra had unrestricted cash and cash equivalents of
INR0.07 billion at end-June 2024 (FYE24: INR0.07 billion). The
company's average use of the fund-based and non-fund-based working
capital limits (adjusted for limits unavailable due to pending
security creation) stood at 85% and 90%, respectively, in the 12
months ended August 2024, reflecting high utilization on a
continued basis. The company has large term loan obligations of
INR0.40 billion in FY25 and INR0.14 billion in FY26. The net
working capital as a percentage of revenue increased to 35% in FY24
(FY23: 28%), mainly due to an increase in trade receivables,
specially from Telangana projects as well as certain private
counterparties. An improvement in the pace of execution as well as
receipt of balance receivables from the government of Telangana
and/or private counterparties is important for aiding short-term
liquidity. While the company realized INR1.57 billion of
receivables from the state government of Telangana in 1QFY25, it
expects to receive another INR2.3 billion over October-December
2024, including INR1.1 billion towards goods and services tax CIL,
which has been approved by the state department. Ind-Ra draws
comfort from the approval of CIL and the payment track record over
1QFY25 and will monitor the inflows, which could strengthen the
liquidity required towards both debt servicing and faster execution
of projects.
For the non-fund-based limits, HES Infra provides long-term BGs due
to a long gestation period of projects. Also, a large portion of
its order book comprises of slow-moving projects, leading to
locking-up of limits. However, the process of complying with the
stipulated security conditions to get full limits released from the
existing banking consortium is under process and is likely to be
completed in 3QFY25. This is expected to ease out the non-fund
based limits utilization and support bidding/orderbook building.
Ind-Ra believes the availability of additional BGs shall be vital
for the company to bid/execute new projects.
Further, the management has stated that since the payment/ unbilled
revenue cycle gets slightly extended in the irrigation industry,
the promoters have infused funds of INR0.10 billion in 1HFY25 to
support any cashflow mismatches and shall be willing to infuse
further funds as per requirements.
Rating Sensitivities
Negative: The following developments which could, individually or
collectively, lead to a negative rating action are:
- any further delays in the execution of awarded projects,
- any further elongation of the working capital cycle and/or any
higher-than-expected capex impacting its liquidity profile,
- deterioration in credit metrics.
Positive: The following developments which could, individually or
collectively, lead to a positive rating action are:
- an improvement in the liquidity position and working capital
cycle through tying up of adequate bank limits on a sustained basis
or liquidation of large receivables,
- the ability to execute the existing order book, thereby
enhancing the revenue and profitability levels on a sustained
basis.
About the Company
HES Infra was set up in 1997 by M Kesava Raju and IVR Krishnam Raju
as a partnership firm in the name Hindustan Engineers Syndicate.
Later, the firm was reconstituted as a private limited company and
incorporated as HES Infra Private Limited in June 2007.
The company undertakes civil contracting works for various kinds of
bridges, aqueducts, road over bridges, railway bridges and
irrigation work such as reservoirs, dams, spillways, canals,
tunnels, among others. Presently, the company is operating in
Andhra Pradesh, Telangana, Madhya Pradesh, Gujarat, Uttar Pradesh,
Uttarakhand, Himachal Pradesh and Tamil Nadu.
INDIA CARTONS: CARE Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of India
Cartons (IC) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated August 9, 2023,
placed the rating(s) of IC under the 'issuer non-cooperating'
category as IC had failed to provide information for monitoring of
the rating as agreed to in its Rating Agreement. IC continues to be
non-cooperative despite repeated requests for submission of
information through e-mails dated June 24, 2024, July 4, 2024, July
14, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
India Cartons (IC) was established by Mr. C. Madanraj and his son,
Mr. M. Naresh Kumar on April 08, 2010 as a partnership concern in
Ambur, Tamil Nadu. The firm is engaged in manufacturing of
packaging material for the footwear industry. The main products
manufactured by IC include cartons, corrugated cartons and rigid
boxes. The entity sells its finished products to customers located
in Tamil Nadu, Karnataka and Indore. The major raw material being
duplex boards are procured from suppliers in Tamil Nadu and China
for finer quality. The manufacturing unit is also located in Ambur,
Tamil Nadu.
INDIA MEGA: CARE Keeps D Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of India Mega
Agro - Anaj Limited (IMAAL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 25.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated September 29,
2023, placed the rating(s) of IMAAL under the 'issuer
non-cooperating' category as IMAAL had failed to provide
information for monitoring of the rating as agreed to in its Rating
Agreement. IMAAL continues to be non-cooperative despite repeated
requests for submission of information through e-mails dated August
14, 2024, August 24, 2024 and September 3, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
India Mega Agro - Anaj Limited (IMA) was incorporated in 2010 by
promoter cum managing director: Mr. Ajay Kumar Baheti. IMA is a
part of Dattakrupa group which was formed in the year 2005 through
incorporation of Datta Krupa Roller Flour Mill Private Limited
(DRFM) at Parbhani. The group started its manufacturing activity
with processing of flour mill and dal mill. Later in order to
expand & diversify its operations and avail various government
benefits attached to the food processing industries, the group
incorporated IMA; which was set up by acquiring 50 acres on lease
at MIDC in Krushnoor district, Nanded. Over the period of time, the
group has set-up various food processing divisions like roller
flour mill; cattle & poultry unit in 2015; dal & rice mill in 2016;
oil mill & refinery, solvent & biscuit unit in 2017. Currently the
group has two manufacturing units located at
Parbhani and Nanded.
IRH PRESS: Voluntary Liquidation Process Case Summary
-----------------------------------------------------
Debtor: IRH Press India Company Private Limited
Office No 401, 4th Floor, Lotus Corporate Park,
Graham Firth Compound, Goregaon East,
Mumbai City, Mumbai, Maharashtra, India, 400063
Liquidation Commencement Date: September 29, 2024
Court: National Company Law Tribunal, Mumbai Bench
Liquidator: Brij Nandan Kalra
B-001, Park View Ananda, Bestech,
Sector-81, Gurgaon-122004 (Haryana)
Email: irhvoluliqu@gmail.com
Mobile No: 9878704134
Last date for
submission of claims: November 3, 2024
JADEJA INDUSTRIES: CARE Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Jadeja
Industries Private Limited (JIPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.90 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated August 17,
2023, placed the rating(s) of JIPL under the 'issuer
non-cooperating' category as JIPL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
JIPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated July 2, 2024, July
12, 2024, July 22, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Morbi (Gujarat) based JIPL was incorporated as a private limited
company during September, 2004 as Jadeja Refractories Private
Limited (JRPL). Subsequently, JRPL was converted into JIPL during
December 2013. JIPL is managed by three promoters namely Mr.
Keshrisinh Jadeja, Mr. Hitendrasinh Jadeja and Mr. Devendrasinh
Rana. JIPL is engaged in to manufacturing of refractory bricks
which is used in lining furnaces, kilns, fireboxes, and fireplaces.
JIPL operates from its sole manufacturing facility located in Morbi
(Gujarat).
JAINAM ALTERNATE: CRISIL Keeps B- Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Jainam
Alternate Energy Private Limited (PPPL; previously known as
Pithampur Petro Pharma Private Limited) continue to be 'CRISIL
B-/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4 CRISIL B-/Stable (Issuer Not
Cooperating)
Long Term Loan 2 CRISIL B-/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with PPPL for
obtaining information through letter and email dated September 9,
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 PPPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PPPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
PPPL continues to be 'CRISIL B-/Stable Issuer Not Cooperating'.
The company, incorporated in 2000 and based in Dhar, Madhya Pradesh
(MP), manufactures and sells bitumen in the domestic market. Mr.
Pravin Jain and Mr. Shailesh Jain manage the operations.
JET AIRWAYS: Supreme Court Reserves Order on Liquidation Plea
-------------------------------------------------------------
ch-aviation reports that India's Supreme Court has reserved its
judgement on a plea by the State Bank of India and other creditors
of Jet Airways to overturn a National Company Law Appellate
Tribunal (NCLAT) decision upholding the airline's resolution plan
and ownership transfer to the Jalan Kalrock consortium (JKC).
According to ch-aviation, the creditors want India's top court to
exercise its powers under Article 142 of the country's constitution
and order the airline's liquidation, saying that the resolution
plan has failed. Jet Airways ended operations in 2019. In 2021, the
National Company Law Tribunal cleared JKC to buy the airline after
the parties had agreed to a resolution plan, also ratified by the
court, to serve as a roadmap for the sale process.
ch-aviation relates that the plan was contingent on JKC meeting
certain conditions, which the banks and other creditors say it has
failed to do. The ownership transfer has subsequently become bogged
down in litigation and has failed to finalise.
A three-judge panel declined to decide on the matter during an
October 16 hearing and bound it over to a yet-to-be-determined
date, ch-aviation notes. Other parties appealing the NCLAT decision
included the Punjab National Bank and JC Flowers Asset
Reconstruction Private Limited.
Counsel for the lenders told the court this week that JKC had
defaulted on the prescribed payments and the agreed-to resolution
plan had "failed miserably". Counsel for the consortium said the
banks now want to liquidate Jet Airways rather than sell it and
said they are deliberately hindering the sale.
ch-aviation says the Supreme Court may decide JKC has stuck to the
terms of the resolution plan and is entitled to take ownership of
Jet Airways. Alternatively, it may decide the consortium has not
abided by the terms and void the resolution plan, paving the way
for either a new one or the airline's liquidation.
The matter, the State Bank of India v. the Consortium of Mr Murari
Lal Jalan and Mr. Florian Fritsch (case no: 005023 - 005024/2024),
is expected to be back in court within the next week, ch-aviation
notes.
About Jet Airways
Based in Mumbai, India, Jet Airways (India) Limited was one of
India's top airlines founded by Naresh Goyal. It provided
passenger and cargo air transportation services as well aircraft
leasing services. It operated flights to 66 destinations in India
and international countries.
Jet Airways on April 17, 2019, halted all flight operations after
its lenders rejected its plea for emergency funds.
On June 20, 2019, the National Company Law Tribunal (NCLT), Mumbai
Bench, accepted an insolvency petition against Jet Airways filed by
its creditors as they attempt to recover some of their dues.
Ashish Chhawchharia of Grant Thornton India has been named as the
resolution professional in the case. Law firm Cyril Amarchand
Mangaldas represented the interests of the lenders' consortium,
according to a Reuters report.
Creditors have filed claims worth INR30,907 crore, according to
Financial Express. The RP has so far admitted claims worth over
INR14,000 crore.
In October 2020, the airline's Committee of Creditors (CoC)
approved the revival plan submitted by the consortium of
Dubai-based Murari Lal Jalan and the UK's Kalrock Capital.
In 2021, the NCLT approved the Jalan-Kalrock consortium's
resolution plan for the troubled carrier.
JHARKHAND ROAD: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Jharkhand
Road Projects Implementation Company Limited (JRPICL) continues to
remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non Convertible 1,088.54 CARE D; ISSUER NOT COOPERATING
Debentures (Reduced from Rating continues to remain
1,232.44) under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated April 4, 2019,
placed the rating(s) of JRPICL under the 'issuer non-cooperating'
category as JRPICL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. JRPICL continues to
be non-cooperative despite repeated requests for submission of
information through phone calls and emails dated between September
1, 2024 and October 10, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The rating factors in stretched liquidity profile due to delay in
receipt of annuities resulting in cashflow mismatch and thereby
adversely impacting the debt servicing capability of the company.
Analytical approach: Standalone
Outlook: Not applicable
Detailed description of key rating drivers:
At the time of last rating on October 17, 2023, the following were
the rating weaknesses (updated for the information available
from stock exchange).
Key weaknesses
* Stretched liquidity profile: The company witnessed stretched
liquidity due to non-receipt of annuities from The Govt. of
Jharkhand. JRPICL received arrear annuities amounting to ~Rs.358
crore during March 2023. However, there has been no annuity receipt
since April 2023 which has resulted in continued cashflow mismatch
and hence delays in debt servicing.
* Delay in Major Maintenance (MM) and exposure to O&M/MM risk:
JRPICL has completed ~65% of total MM works; while work on the
remaining two stretches has been delayed on account of
nonavailability of funds. Successful completion of the entire MM
due is dependent on receipt of annuities from the authority. Delay
in MM activity may lead to levying of any damages in the form of
reduced annuity from the Authority.
Liquidity: Not applicable
The Government of Jharkhand (GoJ) has conceptualized a
comprehensive programme titled the Jharkhand Accelerated Road
Development Programme (JARDP) to improve road infrastructure in the
state through Public Private Partnership framework. IL&FS won the
bid and a Programme Development Agreement (PDA) was signed between
GoJ and IL&FS Group for the improvement of 1500 km lane of selected
project road corridors. Certain road stretches had been selected
for development under this programme. The programme was being
implemented under an SPV named Jharkhand Accelerated Road
Development Company Limited (JARDCL), a JV between IL&FS group and
GoJ with shareholding pattern in ratio of 74:26 respectively. In
terms of the PDA, the GoJ and IL&FS group may take up the
financing, construction, operation and maintenance of the roads
either through JARDCL or through separate SPV's incorporated by GoJ
and/or IL&FS. Accordingly, IL&FS group incorporated JRPICL for
undertaking the design, engineering, financing, procurement,
construction, operation and maintenance of the programme, on Build,
Operate & Transfer (BOT) Annuity Basis. The promoters of JRPICL are
ITNL (93.43%) and IL&FS (6.57%). Separate Concession Agreements
(CAs) have been signed between the GoJ (annuity provider), JARDCL
(JV partner of GoJ for road development) and JRPICL (as
concessionaire) for implementation of the projects in phases.
JRPICL has implemented five different stretches of roads under
JARDP. All the projects are implemented in one balance-sheet though
they have separate escrow arrangement and concession agreement for
individual project lenders.
KG FLEXX: Ind-Ra Assigns BB Bank Loan Rating, Outlook Stable
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated KG Flexx Private
Limited's (KGFPL) bank facilities as follows:
-- INR3.180 bil. Term loan due on FY29 assigned with IND BB/
Stable rating;
-- INR175 mil. Fund-based working capital limits assigned with
IND BB/Stable /IND A4+ rating; and
-- INR140 mil. Non-fund-based working capital limits assigned
with IND BB/Stable /IND A4+ rating.
Detailed Rationale of the Rating Action
The rating considers the commencement of the company's metalized
film plant in November 2023. That said, the implementation of the
company's biaxially oriented polypropylene (BOPP) plant and a ramp
up of both the metallized and BOPP plants remain a monitorable in
the near-to-medium term. Nonetheless, the rating drives comfort
from debt tie-ups for the entire debt in place, the company's
experienced promoters and its expected funding support from parents
as and when required, in addition to their equity and unsecured
debt draw down.
Detailed Description of Key Rating Drivers
Project Implementation Risk for BOPP Project: While the metalized
films plant commenced operations in FY24, the company is further
setting up its BOPP project in Ahmedabad. The BOPP project is to be
commissioned near the existing metalized film plant in Ahmedabad at
a projected cost of INR3,907 million. Given the large size of the
BOPP project, KGFPL remains exposed to the project implementation
and stabilization risk, including a ramp-up of the capacity
utilization. The company has made payments towards land acquisition
and supply of certain capital goods from the equity proceeds
received. The management expects the BOPP project to be
commercialized by FYE25. Since the project is in the development
phase, its timely completion remains a key rating monitorable for
the agency.
Revenue and EBITDA Ramp up to be Monitored: Since the metallized
plant was operational only for the fourth quarter, the company
generated a revenue of INR35 million with an EBITDA loss of INR17
million during FY24. During FY25, the management expects (a) a ramp
up of its metallized plan and (b) the BOPP plant, which will be
completed in 4QFY25, to start contributing to the revenue and
support improvement in profitability. The agency believes that the
ramp up of capacity utilization and its impact on the revenue and
EBITDA needs to be a monitorable for the next 12-18 months.
Profitability Susceptible to Demand-Supply Scenario; Volatile Raw
Material Prices: The company's business is cyclical. Players tend
to add capacities when realizations are favorable, which leads to
higher capacities in the industry, thereby exerting pressure on
realizations. This demand-supply disparity leads to frequent price
fluctuations in the packaging film business, which affects the
profitability. The company's profitability remains susceptible to
adverse movements in raw material prices, which is one of the main
components of the cost structure. The raw material prices are
vulnerable to volatility in crude oil prices as well as its
demand-supply scenario. The demand-supply dynamics remain the
primary driver of KGFPL's profitability as fluctuations in its
input prices are passed on to customers, although the company's
ability to do so might remain limited.
Experienced Promoter Group: KGFPL was incorporated in July 2021 by
its promoters Kataria Group and YPG Group both holding 50:50
ownership in the entity. The Kataria Group operates in various
industries such as automotive, industrial parks, logistic,
insurance and finance while the YPG Group is involved in the
packaging and pouching industry. The synergy of strong industry
dynamics in varied industries and expertise in the packaging
industry by the promoters is likely to ensure the successful
execution of the project within the expected timelines.
Low Funding Risk: The company is setting up its packing units in
two phases wherein Phase I is a 12,000MT metalized film plant that
has been operational since November 2023. The project was completed
at a cost of INR899 million against the budgeted cost of INR928
million. This phase was funded in a debt-to-equity ratio of 1.80x
(considering unsecured loans from promoters as equity).
KGFPL is also setting up a 51,000MT capacity of BOPP plant (Phase
II) in Gujarat that is likely to be operational by FYE25. The
project cost of INR3,907 million will be funded in a debt-to-equity
ratio of 1.97x. The company had incurred around 65% of the project
cost at end-June 2024 and the remaining cost is likely to be
incurred in FY25. The project is likely to be operational by
FYE25.
Ind-Ra believes the project funding risk to be minimal since for
both the projects (a) the promoter has already infused part of the
committed equity (INR200 million out of INR670 million at
end-1QFY25), (b) the promoters have infused a significant portion
of unsecured loans (with no interest payment and fixed maturity)
amounting to INR941million out of total INR968 million at
end-1QFY25 and (c) the debt is fully tied up. However, Ind-Ra will
continue to monitor the timely completion and cost overruns (if
any) for the BOPP project.
Strategic Location and Low Input Risk for Operational Metalized
Plant: KGFPL has set up its metalized film and BOPP film unit in
Limbasi Village, Kheda, Gujarat. There are limited poly films
capacity in its vicinity. The required demand is met through units
from other regions. This will enhance the competitive position and
is likely to ensure a low revenue/offtake risk for the company.
The company procures BOPP, biaxially oriented polyethylene
terephthalate (BOPET) and cast polypropylene (CPP) films from open
market to meet the requirement of its metalized films plant but as
soon as the Phase II (BOPP plant) is operational the company will
stop procuring BOPP films from outside vendors and will utilize the
capacity of its own BOPP plant to get the BOPP films, which will
help reducing some of the input risk and thereby improve the
operational performance.
Liquidity
Stretched: KGFPL had cash and equivalents of INR42 million at
FYE24 (FYE23: INR1 million). The company's utilization of the
fund-based working capital limits was negligible during the 12
months ended September 2024. The company has scheduled repayments
of INR6 million and INR59 million in FY25 and FY26 respectively, in
addition to the interest payouts of INR200 million-300 million each
year. While the company has all the debt tie ups for its
under-construction BOPP, the agency believes any delay and/or cost
over runs in BOPP plant and/or a delay in the ramp up of plant
capacity and/or lower-than-Ind-Ra-expected cashflow generation from
the projects will require additional funding support. The agency
believes in case the internal accruals will not be able to meet the
liquidity requirements, the promoters will infuse the funds as and
when required (as also confirmed by the management).
About the Company
KGFPL was incorporated in July 2021 which is promoted by Kataria
group and YPG group. KGFPL has set up a metalized film plant with
an installed capacity of 12,000MT. KGFPL commercialized the
metalized film facility in November 2023 and is planning to launch
the BOPP facility with an installed capacity of 51,000MT by FYE25.
M.G. INDUSTRIES: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of MGINNA
continue to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.75 CRISIL D (Issuer Not
Cooperating)
Term Loan 1.25 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with MGINNA for
obtaining information through letter and email dated September 9,
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 MGINNA, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
MGINNA is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of MGINNA continues to be 'CRISIL D Issuer Not
Cooperating'.
MGINNA was set up in 1980 in Nashik as a proprietorship firm by Mr
K N Changrani. It manufactures machined precision components for
automobile and electrical tools, and also pneumatic tools
components.
MOKSHA FOODS: CRISIL Keeps B+ Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of MFBPL
continue to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL B+/Stable (Issuer Not
Cooperating)
Cash Credit 1 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with MFBPL for
obtaining information through letter and email dated September 9,
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 MFBPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MFBPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
MFBPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Incorporated in 2004, MFBPL was acquired by Malayalam Motors in
December, 2016. Operating from its headquarters in Edappally,
Cochin, the company manufactures a wide range of edibles including
pulps, crushes, squashes, sauces, ketchups, jam, juices and other
non-alcoholic beverages. Its manufacturing facilities are located
in Coimbatore, Tamil Nadu. The products are labelled, branded and
marketed majorly in three states: Kerala, Tamilnadu and Karnataka
under Mr Butlers brand.
N.S.P. TEX: CRISIL Keeps B Debt Ratings in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of N.S.P. Tex
(NSP) continue to be 'CRISIL B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bill Discounting 9 CRISIL B/Stable (Issuer Not
Cooperating)
Export Packing 12.5 CRISIL B/Stable (Issuer Not
Credit Cooperating)
Rupee Term Loan 2.5 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with NSP for
obtaining information through letter and email dated September 9,
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 NSP, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on NSP
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
NSP continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
NSP, based in Tirupur, Tamil Nadu, was established in 1989 and is
managed by Mr. P Kanagaraj. The firm manufactures and exports
readymade garments.
NUMANS TECHNOLOGY: Voluntary Liquidation Process Case Summary
-------------------------------------------------------------
Debtor: Numans Technologies Private Limited
#6, 2nd Cross, Byappanahalli, Indiranagar,
Bangalore - 560038, Karnataka
Liquidation Commencement Date: October 1, 2024
Court: National Company Law Tribunal, Bengaluru Bench
Liquidator: Pramod Srihari
#3rd Floor, Raaj, Towers,
23rd Cross, Banashankari 2nd Stage,
Bengaluru -560070
Telephone: 080-41607277
Last date for
submission of claims: October 31, 2024
OM SAI: CARE Keeps D Debt Rating in Not Cooperating Category
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Om Sai
Hospitality (OSH) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.55 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated September 22,
2023, placed the rating(s) of OSH under the 'issuer
non-cooperating' category as OSH had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
OSH continues to be non-cooperative despite repeated requests for
submission of information through emails dated August 7, 2024,
August 17, 2024 and August 27, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Established in the year 2012 by Mr. Shekhar Shetty and Mr.
Padmanabh Shetty, Om Sai Hospitality (OSH) is a partnership firm
engaged in the hospitality business and operates a 3-star hotel
"Dhiraj Hotel" at Thane. The hotel currently has 35 executive
deluxe rooms, 2 suite rooms and a banquet hall and provides
amenities such as WiFi, doctor on call, laundry service and valet
parking for its guests. The hotel mainly caters to corporate
customers and also leisure travellers looking for a budget hotel.
POLYBLEND COLOUR: CARE Keeps B- Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Polyblend
Colour Concentrate (PCC) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.25 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated September 22,
2023, placed the rating(s) of PCC under the 'issuer
non-cooperating' category as PCC had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
PCC continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated August 7, 2024,
August 17, 2024 and August 27, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Polyblend Colours Concentrate (PCC) was established in 1996 as
partnership firm by Parmar family and is engaged in manufacturing
of Master batches, Pre- Dispersed Pigments, Mono Concentrates,
Paint & Ink Dispersion and Pre-Colored One Pack Stabilizer. The
firm is ISO 9001: 2000 certified entity. The registered office is
located at Goregoan, Mumbai and manufacturing unit is located at
Dabhel, Daman.
POOJA SPONGE: CRISIL Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Pooja Sponge
Private Limited (PSPL) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 9 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 4 CRISIL D (Issuer Not
Cooperating)
Term Loan 7 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with PSPL for
obtaining information through letter and email dated September 9,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of PSPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PSPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
PSPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
PSPL was incorporated in 2002 in Rourkela and was initially
promoted by the Odisha-based Gupta family. The company was acquired
in 2006 by the Agarwal family. PSPL manufactures sponge iron at its
facility in Rourkela (kiln capacity of 200 tonne per day) and also
trades in steel flat and long products. Operations are managed by
director, Mr. Kavit Agarwal.
PRAJIT FOUNDATION: CRISIL Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Prajit
Foundation Private Limited (PFPL; part of the GS group) continues
to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 10 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with PFPL for
obtaining information through letter and email dated September 9,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of PFPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PFPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
PFPL continues to be 'CRISIL D Issuer Not Cooperating'.
For arriving at the ratings, CRISIL Ratings has combined the
business and financial risk profiles of Golden Shelters Private
Limited (GSPL) and PFPL. That's because the two companies,
collectively referred to as the GS group, are in the same line of
business and have common promoters.
About the Group
Incorporated in 2002, GSPL conducts wellness courses at its centre
in Chittor district, Andhra Pradesh. The company started leasing
out commercial real estate space in fiscal 2013.
PFPL, incorporated in 2001, conducts yoga, meditation, and wellness
courses. It started operations in 2008.
RASHTRIYA ISPAT: Ind-Ra Withdraws D Term Loan Rating
----------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Rashtriya Ispat
Nigam Limited's (RINL) bank facilities' ratings at 'IND D' and has
simultaneously withdrawn the same, as follows:
-- INR2,548.5 bil. Fund-based working capital limits* affirmed
and withdrawn; and
-- INR5,775.9 bil. Term loans* due on August 2028 affirmed and
withdrawn.
* Affirmed at 'IND D' before being withdrawn
Analytical Approach
To arrive at the ratings, Ind-Ra continues to assess the standalone
profile of the company while factoring in implicit support from
the government of India's (GoI) parentage, owing to the company
being a Navratna public sector undertaking (PSU) and a systemically
important entity.
Detailed Rationale of the Rating Action
The affirmation reflects RINL's sustained delays in the servicing
of principal and interest repayments from July 2024.
Ind-Ra is no longer required to maintain the rating, as the agency
has received a no-objection certificate from all lenders. This is
consistent with Ind-Ra's Policy on Withdrawal of Ratings.
Detailed Description of Key Rating Drivers
Delay in Debt Servicing: RINL has been reporting defaults on its
term loan principal and interest repayment obligations since July
2024.
Liquidity
Poor: RINL's liquidity continues to be poor due to low-to-negative
EBITDA generation against significantly high debt repayment
obligations. There have been delays in the receipt of funds for
assets that have already been monetized and in asset monetization
plans for other assets. In the past, the company's losses were
funded by additional short-term borrowings, which mounted
significantly over FY17-FY20. Furthermore, as at FYE24, the free
cash balances were around INR197 million (FYE23: INR27 million;
FYE22: INR41 million).
About the Company
RINL is a Navratna CPSE under the ministry of steel. Established in
1982, the company has its registered office at Visakhapatnam,
Andhra Pradesh. It is an integrated manufacturer of long steel
products, with a liquid steel manufacturing capacity of around
6.3mtpa. It also has a 541.6MW captive power plant (capable to meet
100% of the requirement; met 62% requirement in FY24).
SAIDEEP CARS: CRISIL Keeps C Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Saideep Cars
Private Limited (SCPL) continue to be 'CRISIL C Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2.5 CRISIL C (Issuer Not
Cooperating)
Inventory Funding 3.0 CRISIL C (Issuer Not
Facility Cooperating)
Rupee Term Loan 1.5 CRISIL C (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SCPL for
obtaining information through letter and email dated September 9,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SCPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SCPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SCPL continues to be 'CRISIL C Issuer Not Cooperating'.
Incorporated in 2008, SCPL is promoted by Chopra family. The
company is dealer of passenger vehicle Renault India Pvt Ltd. in
Ahmednagar (Maharashtra). The company has 1 showroom in Ahmednagar.
The operations of the company are managed by Chopra family.
SCANIA STEELS: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Scania Steels
and Powers Limited (Scania) 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 11.5 CRISIL D (Issuer Not
Cooperating)
Cash Credit 12.93 CRISIL D (Issuer Not
Cooperating)
Funded Interest 4.95 CRISIL D (Issuer Not
Term Loan Cooperating)
Funded Interest 1.85 CRISIL D (Issuer Not
Term Loan Cooperating)
Letter of Credit 3 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 5.6 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 18.39 CRISIL D (Issuer Not
Cooperating)
Term Loan 5.37 CRISIL D (Issuer Not
Cooperating)
Working Capital 7.91 CRISIL D (Issuer Not
Term Loan Cooperating)
Working Capital 4.5 CRISIL D (Issuer Not
Term Loan Cooperating)
CRISIL Ratings has been consistently following up with Scania for
obtaining information through letter and email dated September 9,
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 Scania, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
Scania is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of Scania continues to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Scania was originally set up by Mr. Satish Garg and his family
(from New Delhi) in 1995 and was engaged in manufacture of sponge
iron. In 2006-07, Mr. Sanjay Gadodia, based in Rourkela (Odisha),
purchased this company. Scania has also established a rolling
mill.
SIDWIN FABRIC: CRISIL Keeps B Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Sidwin Fabric
Private Limited (SFPL) continue to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7 CRISIL B/Stable (Issuer Not
Cooperating)
Term Loan 5 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SFPL for
obtaining information through letter and email dated September 9,
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 SFPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SFPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SFPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Incorporated in the 2011, SFPL manufactures non-woven polypropylene
fabrics at its facility in Himatnagar, Gujarat. It is managed by
Mr. Chirag Patel and their family members.
STERIMED INC: CRISIL Keeps B Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Sterimed INC
(SI) continue to be 'CRISIL B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3.5 CRISIL B/Stable (Issuer Not
Cooperating)
Cash Term Loan 1.5 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Working 1.0 CRISIL B/Stable (Issuer Not
Capital Facility Cooperating)
CRISIL Ratings has been consistently following up with SI for
obtaining information through letter and email dated September 9,
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 SI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SI is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the rating on bank facilities of SI
continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Established in 1996, SI is involved in wholesale distribution of
sterilisation packaging, monitoring products, cleaning chemicals,
and teaching aids. The firm has long-term agreements with its
principals'Steris Corporation, Westfield Medical Ltd, Albert Browne
Ltd, and Nasco Fort Atkinson. It is managed by the managing
partner, Mr. A K Chandrasekharan.
STERLING OIL: CARE Keeps D Debt Rating in Not Cooperating Category
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sterling
Oil Resources Limited (SORL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 299.72 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated September 8,
2023, placed the rating(s) of SORL under the 'issuer
non-cooperating' category as SORL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
SORL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated July 24, 2024,
August 3, 2024 and August 13, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Sterling Oil Resources Limited (SORL), incorporated in March 2007,
a Sandesara Group company, was incorporated in India for
undertaking oil exploration and production activities in oil
prolific areas across the globe. SORL through its 100% subsidiaries
in Mauritius and British Virgin Island (BVI) holds 90% stake in
Sterling Oil Exploration & Energy Production Company Limited
(SEEPCO, the operator of the oil block), a company incorporated in
Nigeria to acquire and operate Oil Exploration and Production
businesses in Nigeria.
SUDEEP EXIM: CRISIL Keeps B+ Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL said the ratings on bank facilities of Sudeep Exim Private
Limited (SEPL) continue to be 'CRISIL B+/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Channel Financing 3.0 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL Ratings has been consistently following up with SEPL for
obtaining information through letter and email dated September 09,
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 SEPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SEPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
SEPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
SEPL is promoted by Mr. Sushil Kanodia and Mr. Deepak Kanodia.
Company was incorporated in 2006. It is an authorized distributor
for JSW Steel Ltd. Company is engaged in the distributorship of
Mild Steel Flat & Long Products, CR Sheets, CRCA Sheets, CRCA Coils
and Cold Rolled Coils.
VENTO POWER: CARE Keeps D Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Vento Power
Infra Private Limited (VPIPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 196.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated August 23,
2023, placed the rating(s) of VPIPL under the 'issuer
non-cooperating' category as VPIPL had failed to provide
information for monitoring of the rating as agreed to in its Rating
Agreement. VPIPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails dated July
8, 2024, July 18, 2024 and July 28, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Vento Power Infra Private Limited is a Special purpose vehicle
(SPV) of Essel Green Energy Private Limited and has developed solar
PV project with total capacity of 40 MW in Balangir District of
Odisha. The project has a long-term power purchase agreement (PPA)
with Solar Energy Corporation of India (SECI).
=========
J A P A N
=========
[*] JAPAN: Zombie Companies May Finally Succumb to Bankruptcy
-------------------------------------------------------------
Bloomberg News reports that after three decades of ultraloose
monetary policy, even small hikes in interest rates by the Bank of
Japan are poised to fuel an increase in the number of zombie
companies that could be tipped into insolvency.
Bloomberg says bankruptcies topped 5,000 cases for the first time
in a decade between April and September, a report by Tokyo Shoko
Research showed earlier this month. Those 5,095 firms collectively
account for almost JPY1.38 trillion ($9.2 billion) in debt, with
the largest slice coming from the service industry.
Defined as businesses that struggle to pay the interest on debt
from operating profit alone, zombie companies have survived for
years in Japan thanks to low rates and government support,
according to Bloomberg. Unable to invest or hire, they're stifling
the emergence of new enterprises and preventing job mobility.
Clearing them out may not be such a bad thing, and make way for
new, healthier enterprises, according to Nicholas Smith, strategist
at CLSA Securities Japan.
"None of them will be missed," Bloomberg quotes Mr. Smith as
saying. "We've got to a situation where we are not concerned about
unemployment in Japan. In fact, what we're most concerned about is
a severe labor shortage."
A 0.1 percentage point rise in the benchmark rate could boost the
number of these corporate zombies, which spend most of their profit
paying down debt, to around 632,000 from around 565,000, Bloomberg
discloses citing a report earlier this year by the research firm.
One of them is HIS, one of the country's largest travel agencies.
The Tokyo-based company posted JPY1.4 billion in operating profit
in its latest fiscal year, which ends in October, but spent JPY1.5
billion on net interest expenses.
Known for its low-cost package tours, HIS has been struggling due
to the dearth of post-pandemic outbound travel from Japan, in
contrast to the flood of tourists visiting the country. That's
partly due to the weak yen, another legacy of decades of low
interest rates. HIS took on more liabilities after 2020 and now
holds JPY30 billion in debt, according to data compiled by
Bloomberg.
Bloomberg says the term "zombie company" was coined in 2008 by
three professors, including University of Tokyo Professor Takeo
Hoshi. He defines a zombie as a company that hasn't addressed
operational concerns, but has avoided bankruptcy thanks to the
financial support of the government or creditors.
The Bank for International Settlements, on the other hand, defines
one as a firm founded more than 10 years ago that has logged an
interest coverage ratio lower than 1 for more than three years.
Bloomberg notes that one of the biggest bankruptcies this year was
MSJ Asset Management, which held JPY641.3 billion when it was
liquidated by Mitsubishi Heavy Industries after its failure to
enter the domestic jetliner business.
Others include the plastics recycling company Eco Research
Institute, medical device supplier Hokushin Medical and Asahi Food
Create, which sold pre-prepared food.
Besides banking and insurance, every sector and region in Japan saw
an increase in bankruptcies during those six months. As interest
rates are hiked and major industries like transportation,
artificial intelligence and software see aggressive competition
from global players, that number is set to keep growing.
Even Japan's larger companies aren't immune to the prospect of
insolvency anymore, Bloomberg says. Panasonic Liquid Crystal
Display topped the nation's list of bankruptcies in 2023.
Competition made the LCD panel business shift its focus to the
automotive and industrial sectors, but trade tensions between the
U.S. and China led its parent company to shutter the business.
Bloomberg relates that Panasonic Holdings decided to liquidate the
unit's assets and waive the JPY583.6 billion it owed in loans to
another one of its subsidiaries. The electronics maker's move in
2021 to adopt a holding company structure sought to improve the
accountability and profitability of each division. In May, Chief
Executive Officer Yuki Kusumi said he'll seek to improve
underperforming units by finding their "best owner."
Debt-laden companies in Japan are rapidly growing in number, in
some measures even faster than in 1992 after the collapse of its
asset price bubble. Zombie companies accounted for 14% of listed
firms in Japan, according to Tokyo Shoko Research.
Zombie companies are found concentrated in Japan's sectors where
the labor shortage is most prominent, namely restaurants, hotels,
transportation and tourism, Bloomberg notes.
=====================
N E W Z E A L A N D
=====================
ADVANCE SCAFFOLD: Creditors' Proofs of Debt Due on Nov. 19
----------------------------------------------------------
Creditors of Advance Scaffold (Auckland) Limited are required to
file their proofs of debt by Nov. 19, 2024, to be included in the
company's dividend distribution.
The High Court at Auckland appointed Kristal Pihama and Leon
Francis Bowker of KPMG as liquidators on Oct. 17, 2024.
MACPHERSON GROUP: Creditors' Proofs of Debt Due on Nov. 29
----------------------------------------------------------
Creditors of Macpherson Group Limited are required to file their
proofs of debt by Nov. 29, 2024, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Oct. 18, 2024.
The company's liquidators are:
Iain Bruce Shephard
Jessica Jane Kellow
BDO Wellington, Business Restructuring
Level 1, 50 Customhouse Quay
Wellington 6011
SAV BUILDERS: Court to Hear Wind-Up Petition on Oct. 31
-------------------------------------------------------
A petition to wind up the operations of SAV Builders Limited will
be heard before the High Court at Auckland on Oct. 31, 2024, at
10:45 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Sept. 10, 2024.
The Petitioner's solicitor is:
Hosanna Tanielu
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
SMARTLIFE AV: Court to Hear Wind-Up Petition on Nov. 15
-------------------------------------------------------
A petition to wind up the operations of Smartlife AV Limited and
Smartlife Tauranga Limited will be heard before the High Court at
Auckland on Nov. 15, 2024, at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Sept. 19, 2024.
The Petitioner's solicitor is:
Cloete Van Der Merwe
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
TUCKER-STEAD FITNESS: Creditors' Proofs of Debt Due on Nov. 18
--------------------------------------------------------------
Creditors of Tucker-Stead Fitness Limited are required to file
their proofs of debt by Nov. 18, 2024, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Oct. 18, 2024.
The company's liquidators are:
Adam Botterill
Damien Grant
Waterstone Insolvency
PO Box 352
Auckland 1140
===============
P A K I S T A N
===============
PAKISTAN: Finance Chief Sees 'Encouraging' China Debt Talks
-----------------------------------------------------------
Bloomberg News reports that Pakistan is getting a promising
response from China over its request to lengthen maturities for
Belt and Road Initiative loans, according to its finance minister,
signaling potentially more breathing room for the nation that has
been squeezed by costly borrowing in the past.
Bloomberg relates that the South Asian nation is looking to
increase the maturities for debt taken to build power plants and
"create enough space" to lower electricity prices, Muhammad
Aurangzeb said in an interview in Washington. Electricity prices
have tripled for some people in Pakistan in the past few years and
surpassed house rent for some.
"We have just started that discussion and the response is
encouraging," Bloomberg quotes Aurangzeb as saying on Oct. 22 on
the sidelines of the annual meetings of the International Monetary
Fund and World Bank. These are early days in terms of those
negotiations. The former JPMorgan Chase & Co. banker discussed debt
with Chinese officials during a visit to the country in July.
Pakistan is seeing a period of stability after securing a new $7
billion loan program from the IMF, Bloomberg notes. It has also
seen partners including China roll over debt of $16 billion from a
total of about $26 billion due in the current fiscal year that
started in July. The government also plans to initiate discussions
on obtaining additional financing from the IMF through its climate
resiliency fund, he said.
The Chinese side is willing to continue to carry out energy
cooperation with the Pakistani side in a pragmatic, steady and
orderly manner so as to better benefit the people of the two
countries, the Spokesperson's Office of China's Foreign Ministry
said in a reply, Bloomberg relays. Energy cooperation between the
two countries comes with extensive consultation, joint contribution
and follows market rules, it said.
"We also call on all relevant parties to take positive actions and
jointly play a constructive role in Pakistan's sustainable economic
development," the ministry said, notes the report.
Having gone through 25 loan programs over half a century, Pakistan
must institute durable reforms in key areas of the energy sector,
tax collection and state-owned enterprises to end a cycle of
indebtedness, the finance minister said separately at an IMF forum
later on Oct. 22, according to Bloomberg.
"We've had so many programs. We've had boom and bust cycles,"
Aurangzeb said, Bloomberg relates. "We do not have a choice but to
ensure that we continue with the structural reforms."
He added that the government knows it has no business being in
business and that it must provide an enabling environment to
support the private sector. It also aims to shrink government costs
by cutting the number of ministries and closing 150,000 federal
positions.
To boost tax revenue, Pakistan will target sectors including retail
and agriculture that have opposed previous attempts at taxation.
The nation's provinces will move forward on legislation on the
agriculture side by January and aim to start collection by July,
the finance chief said in the interview with Bloomberg.
According to Bloomberg, the country has been a flagship destination
for China's Belt and Road Initiative of lending to developing
countries that helped the nation end its decades-long electricity
blackout issues. Now its seeking to extend the maturity of debt for
nine power plants built by Chinese companies under the multi
billion-dollar economic corridor.
Pakistan's period of stability has seen consumer price increases
decelerate to the lowest in almost four years, Bloomberg states.
Pakistan's short-term local government bonds are set for their
first annual inflow from foreign investors in five years, buoyed by
high yields and a stable rupee. The benchmark stock index has risen
70% in the past 12 months, making it the world's best performer.
Pakistan's central bank has cut its benchmark interest rate for
three consecutive meetings by 450 basis points to 17.5% from a
record 22%. The next meeting on Nov. 4 may see the central bank
reduce the policy rate, said Aurangzeb.
About Pakistan
Pakistan is a country located in South Asia. It has a coastline
along the Arabia Sea and the Gulf of Oman and is bordered by
Afghanistan, China, India, and Iran. Pakistan's capital is
Islamabad.
As reported in the Troubled Company Reporter-Asia Pacific in early
September 2024, 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 TCR-AP reported that S&P Global Ratings, on July 30, 2024,
affirmed its 'CCC+' long-term sovereign credit rating and 'C'
short-term rating on Pakistan. The outlook on the long-term rating
is stable. S&P's transfer & convertibility assessment remains at
'CCC+'.
The TCR-AP also reported in early August that Fitch Ratings has
upgraded Pakistan's Long-Term Foreign-Currency Issuer Default
Rating (IDR) to 'CCC+' from 'CCC'. Fitch typically does not assign
Outlooks to sovereigns with a rating of 'CCC+' or below.
=================
S I N G A P O R E
=================
ADAPTALIFT GSE: Creditors' Proofs of Debt Due on Nov. 18
--------------------------------------------------------
Creditors of Adaptalift GSE Pte. Ltd. are required to file their
proofs of debt by Nov. 18, 2024, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Oct. 11, 2024.
The company's liquidators are:
Victor Goh
Khor Boon Hong
Marie Lee
C/o Baker Tilly
600 North Bridge Road
#05-01 Parkview Square
Singapore 188778
BEYOND LUXURY: Commences Wind-Up Proceedings
--------------------------------------------
Members of Beyond Luxury Pte. Ltd. on Oct. 11, 2024, passed a
resolution to voluntarily wind up the company's operations.
The company's liquidators are:
Lin Yueh Hung
Ng Kian Kiat
8 Wilkie Road
#03-08, Wilkie Edge
Singapore 228095
GV AUTOMOBILE: Commences Wind-Up Proceedings
--------------------------------------------
Members of GV Automobile Centre Pte. Ltd. on Oct. 11, 2024, passed
a resolution to voluntarily wind up the company's operations.
The company's liquidator is:
Seah Chee Wei
Rock Stevenson Pte Ltd
60 Paya Lebar Road
#04-23 Paya Lebar Square
Singapore 409051
NUSANTARA ENERGY: Court Enters Wind-Up Order
--------------------------------------------
The High Court of Singapore entered an order on Oct. 8, 2024, to
wind up the operations of Nusantara Energy International Pte. Ltd.
Lai Chung Wing filed the petition against the company.
The company's liquidators are:
Ong Shyue Wen
Saw Meng Tee
EA Consulting
1 North Bridge Road
#23-05, High Street Centre
Singapore 179094
STRAITS GREEN: Creditors' Proofs of Debt Due on Nov. 18
-------------------------------------------------------
Creditors of Straits Green Energy Pte. Ltd. are required to file
their proofs of debt by Nov. 18, 2024, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Oct. 14, 2024.
The company's liquidator is:
Mitani Masatoshi
c/o 10 Anson Road
#14-06 International Plaza
Singapore 079903
THAT CD SHOP: Creditors' Proofs of Debt Due on Nov. 18
------------------------------------------------------
Creditors of That CD Shop Pte. Ltd. are required to file their
proofs of debt by Nov. 18, 2024, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Oct. 14, 2024.
The company's liquidators are:
Lau Chin Huat
Yeo Boon Keong
c/o Technic Inter-Asia Pte Ltd
50 Havelock Road #02-767
Singapore 160050
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2024. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
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*** End of Transmission ***