/raid1/www/Hosts/bankrupt/TCRAP_Public/241108.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Friday, November 8, 2024, Vol. 27, No. 225
Headlines
A U S T R A L I A
DIXON ADVISORY: ASIC's Proceedings Against Director Dismissed
JAFFE LEE: First Creditors' Meeting Set for Nov. 11
RELEAF GROUP: Creditors to Meet on Nov. 11; Business Up for Sale
SPARTAN ADMIN: Second Creditors' Meeting Set for Nov. 12
SUSHI-PRO.COM.AU: First Creditors' Meeting Set for Nov. 13
TURQUOISE II 2024-2: S&P Assigns B (sf) Rating to Class F Notes
C H I N A
VIVIC CORP: Swings to $2.9-Mil. Net Income in FY Ended June 30
[*] CHINA: Foreclosures Soar, Threatens to Choke Off Bank Profits
I N D I A
A H MALLICK: CARE Keeps D Debt Rating in Not Cooperating Category
BOSHAN DEVELOPERS: CARE Keeps D Debt Rating in Not Cooperating
CDR PROJECTS: ICRA Keeps B+/A4 Debt Ratings in Not Cooperating
CHALAPATHI EDUCATION: ICRA Keeps B+ Ratings in Not Cooperating
DEEPAK FASTENERS: CARE Assigns B+ Rating to INR275cr NCDs
FINONE TECHNOLOGIES: Voluntary Liquidation Process Case Summary
HARPYARI DEVI: ICRA Keeps B+ Debt Ratings in Not Cooperating
ISHWAR CONSTRUCTIONS: Insolvency Resolution Process Case Summary
JAATVEDAS CONSTRUCTION: CRISIL Cuts LT/ST Debt Ratings to D
JAGDISH COTTON: CRISIL Lowers Rating on INR28cr Cash Loan to B+
JET AIRWAYS: Supreme Court Orders Carrier's Liquidation
K. D. SINGH: CARE Keeps D Debt Rating in Not Cooperating Category
MAST INNOVATIVE: Insolvency Resolution Process Case Summary
MITTAL CONSTRUCTION: ICRA Keeps B+ Ratings in Not Cooperating
MSO HOSPITALITY: Voluntary Liquidation Process Case Summary
NEMCARE HOSPITAL: CARE Keeps D Debt Rating in Not Cooperating
NEW WORLD: ICRA Keeps B+ Debt Rating in Not Cooperating Category
ORION WATER: Insolvency Resolution Process Case Summary
PRATIBHA MILK: CARE Keeps D Debt Rating in Not Cooperating
R A MOTORS: CARE Reaffirms B+ Rating on INR65.57cr LT Loan
RLC ENGINEERS: CRISIL Lowers Rating on INR6cr Proposed Loan to B
SAI POULTRY: CARE Keeps B- Debt Rating in Not Cooperating Category
SAISUDHIR INFRA: ICRA Keeps D Debt Ratings in Not Cooperating
SUDARSHAN TECHNO: CRISIL Cuts Corporate Credit Rating to B+
TULSIIMPEX FORWARDERS: Voluntary Liquidation Process Case Summary
VARDHMAN BUILDPROP: CARE Keeps D Debt Rating in Not Cooperating
VARDHMAN INFRAHEIGHTS: CARE Keeps D Debt Rating in Not Cooperating
I N D O N E S I A
[*] INDONESIA: Aims to Cancel USD550M in Small Businesses' Bad Debt
J A P A N
NISSAN MOTOR: Announces Restructuring With 9,000 Job Cuts
M A L A Y S I A
FASHIONVALET SDN: MACC Freezes Founders' Bank Accounts
KHEE SAN: Signs Underwriting Deal for Rights Issue to Exit PN17
N E W Z E A L A N D
CNK HOLDINGS: Court to Hear Wind-Up Petition on Nov. 15
MAKOZ LIMITED: Court to Hear Wind-Up Petition on Nov. 15
NIJJAR TAXI: Creditors' Proofs of Debt Due on Jan. 10
REMIX FITNESS: Court to Hear Wind-Up Petition on Nov. 15
TERMINUS 1: Creditors' Proofs of Debt Due on Dec. 10
S I N G A P O R E
MD AVIATION: Creditors' Proofs of Debt Due on Dec. 4
MULTI WATER: Commences Wind-Up Proceedings
NEW HORIZON: Court to Hear Wind-Up Petition on Nov. 14
ORHSOME PTE: Court Enters Wind-Up Order
SG BLACKMARKET: Court Enters Wind-Up Order
VAN NGUYEN: Court Enters Wind-Up Order
V I E T N A M
VIETNAM TECHCOMBANK: S&P Affirms 'BB-' LT ICR, Outlook Stable
- - - - -
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A U S T R A L I A
=================
DIXON ADVISORY: ASIC's Proceedings Against Director Dismissed
-------------------------------------------------------------
The Federal Court has dismissed the Australian Securities &
Investments (ASIC)'s case against Paul Ryan, director of Dixon
Advisory & Superannuation Services Pty Limited, for alleged
breaches of directors' duties.
ASIC alleged Mr. Ryan breached his duties as a director by his
involvement in decisions made at a time when Dixon Advisory was
approaching insolvency. ASIC alleged those decisions were to the
advantage of Dixon Advisory's holding company, E&P Operations Pty
Ltd (of which Mr Ryan was a director), and he failed to properly
consider the interests of Dixon Advisory's creditors.
ASIC Deputy Chair Sarah Court said, 'We took this case because
directors have responsibilities under the law to act in the best
interests of their company, and this includes considering the
interests of creditors when the company is facing insolvency.
'ASIC remains committed to taking enforcement action where
appropriate and expects directors to meet their governance
obligations, including where they serve on the boards of multiple
companies in a corporate group.'
ASIC is considering the judgment.
Both Dixon Advisory and E&P Operations were wholly owned
subsidiaries of E&P Financial Group Limited.
Dixon Advisory previously held an Australian Financial Services
licence and operated a financial advice business focused on
providing financial advice, investment advice, portfolio management
and superannuation administration services to retail clients.
In the period from 2020, Dixon Advisory faced claims arising from
the provision of financial advice to clients who were advised to
invest in the US Masters Residential Property Fund (URF) and
URF-related products, which were issued and operated by related
companies to Dixon Advisory. These included:
* a proceeding issued by ASIC in the Federal Court which
resulted in orders for Dixon Advisory to pay a AUD7.2 million
penalty and AUD1 million towards ASIC's costs;
* complaints made to the Australian Financial Complaints
Authority, and
* three court proceedings in the Federal Court, including two
class action proceedings.
On Jan. 19, 2022, after Dixon Advisory amended its Constitution and
entered into the Deed with E&P Operations, the directors of Dixon
Advisory resolved to appoint voluntary administrators to DASS.
On April 8, 2022, the AFS licence held by DASS was suspended by
ASIC and subsequently cancelled, effective April 5, 2023.
On Dec. 16, 2022, a deed of company arrangement (DOCA) was passed
by Dixon Advisory's creditors, which among other things required
E&P Operations to pay an amount of AUD17,662,489 to Dixon Advisory
less a settlement adjustment for expenses incurred by E&P
Operations during the administration period. Further details
regarding the DOCA can be found on the administrators' website.
On Aug. 4, 2023, ASIC began civil proceedings in the Federal Court
against Paul Ryan, director of Dixon Advisory & Superannuation
Services Pty Limited, for alleged breaches of directors' duties.
JAFFE LEE: First Creditors' Meeting Set for Nov. 11
---------------------------------------------------
A first meeting of the creditors in the proceedings of Jaffe Lee &
Associates Pty Ltd will be held on Nov. 11, 2024 at 11:00 a.m. at
the offices of Sinisgalli Foster Legal at Level 7, 224 Queen Street
in Melbourne.
Andrew Beck of Greyhouse Partners was appointed as administrator of
the company on Oct. 29, 2024.
RELEAF GROUP: Creditors to Meet on Nov. 11; Business Up for Sale
----------------------------------------------------------------
Steve Jones at Cannabiz reports that creditors of Releaf Group will
gather on November 11 as business consultants trawl through the
firm's books and piece together the chain of events which led to
its financial collapse.
Cannabiz relates that the date of the meeting was confirmed by
administrator Mackay Goodwin as an initial report suggested
Releaf's director, Gary Mackenzie, is keen to pursue a Deed of
Company Arrangement, or DOCA.
Releaf Group Ltd is Australia's leading cannabis franchise group,
operating in Australia, New Zealand, and the United Kingdom. The
company has a vertically integrated business model with several
wholly owned subsidiaries ranging from multidisciplinary clinics,
retail and pharmacies, research & development, training &
education, wholesale and distribution.
Daniel Juratowitch and Shaun Matthews of restructuring advisory
firm Cor Cordis were appointed Receivers and Managers of Releaf
Group Limited (trading as Releaf Pets, Releaf Clinics, Clinican,
Mull Café & Releaf Clinics and Dispensaries) and related entities
on Oct. 29, 2024:
* Releaf (Vic) Pty Ltd
* Releaf Clinic St Kilda Pty Ltd
* Releaf Franchising Pty Ltd
* Releaf Wholesale Pty Ltd
* Releaf Dispensaries Pty Ltd
SPARTAN ADMIN: Second Creditors' Meeting Set for Nov. 12
--------------------------------------------------------
A second meeting of creditors in the proceedings of Spartan Admin
Pty Ltd has been set for Nov. 12, 2024 at 11:00 a.m. 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 Nov. 11, 2024 at 5:00 p.m.
Paul Vartelas of B K Taylor & Co was appointed as administrator of
the company on Oct. 7, 2024.
SUSHI-PRO.COM.AU: First Creditors' Meeting Set for Nov. 13
----------------------------------------------------------
A first meeting of the creditors in the proceedings of
Sushi-Pro.Com.Au Pty Ltd will be held on Nov. 13, 2024 at 2:30 p.m.
at the offices of Worrells at Level 15, 300 Queen Street in
Brisbane and via Microsoft Teams.
Christopher Richard Cook of Worrells was appointed as administrator
of the company on Nov. 1, 2024.
TURQUOISE II 2024-2: S&P Assigns B (sf) Rating to Class F Notes
---------------------------------------------------------------
S&P Global Ratings assigned its ratings to seven classes of
nonconforming and prime residential mortgage-backed securities
(RMBS) issued by Permanent Custodians Ltd. as trustee of Turquoise
II Series 2024-2 Trust. Turquoise II Series 2024-2 Trust is a
securitization of nonconforming and prime residential mortgages
originated by Bluestone Group Pty Ltd. and Bluestone Mortgages Pty
Ltd. (collectively Bluestone).
The ratings S&P has assigned to the floating-rate RMBS reflect the
following factors.
The credit risk of the underlying collateral portfolio and the
credit support provided to each class of notes are commensurate
with the ratings assigned. Note subordination and excess spread
provide credit support. S&P's assessment of credit risk considers
Bluestone's underwriting standards and approval process, and
Bluestone's strong servicing quality.
The rated notes can meet timely payment of interest and ultimate
payment of principal under the rating stresses. Key rating factors
are the level of subordination provided, the provision of a
liquidity reserve funded from note overissuance, the principal draw
function, the yield reserve, retention amount built from excess
spread, and the provision of an extraordinary expense reserve. S&P
said, "Our analysis is on the basis that the rated notes are fully
redeemed via the principal waterfall mechanism under the
transaction documents by their legal final maturity date, and we
assume the notes are not called at or beyond the call date."
S&P said, "Our ratings also consider the counterparty exposure to
Commonwealth Bank of Australia as bank account provider. The
transaction documents for this account include downgrade language
consistent with S&P Global Ratings' counterparty criteria.
"We have also factored into our ratings the legal structure of the
trust, which is established as a special-purpose entity and meets
our criteria for insolvency remoteness."
Ratings Assigned
Turquoise II Series 2024-2 Trust
Class A-S, A$50.00 million: AAA (sf)
Class A-L, A$303.62 million: AAA (sf)
Class B, A$15.84 million: AA (sf)
Class C, A$17.46 million: A (sf)
Class D, A$7.71 million: BBB (sf)
Class E, A$6.50 million: BB (sf)
Class F, A$2.63 million: B (sf)
Class G1, A$1.1438 million: Not rated
Class G2, A$1.0962 million: Not rated
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C H I N A
=========
VIVIC CORP: Swings to $2.9-Mil. Net Income in FY Ended June 30
--------------------------------------------------------------
Vivic Corp. filed with the U.S. Securities and Exchange Commission
its Annual Report on Form 10-K reporting a net income of $2,850,514
for the year ended June 30, 2024, compared to a net loss of
$780,326 for the year ended June 30, 2023.
As of June 30, 2024, the Company had $4,866,059 in total assets,
$2,272,892 in total liabilities, and $2,593,167 in total
stockholders' equity.
Irvine, California-based YCM CPA INC., the Company's auditor since
2022, issued a "going concern" qualification in its report dated
October 22, 2024, citing that the Company had an accumulated
deficit as of June 30, 2024, and negative cash flows from
operations. The Company does not have sustained and stable income,
and there is also significant uncertainty in the income for the
next 12 months. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
The continuation of the Company as a going concern through the
one-year period from the date on which this report is filed is
dependent upon continued financial support from its related parties
or loans or investments by third parties, increasing its sales and
the diversity of its customer base. The Company is actively
pursuing additional financing for its operations via potential
loans and equity issuances. However, there is no assurance that the
Company will be successful in securing sufficient funds to sustain
its operations.
In addition, the Company will seek to expand the yacht brands the
Company can offer for sale, the territories in which the Company
markets its yachts and, if appropriate based on the Company's
capabilities and what the Company can offer, seek to become the
exclusive distributor for yacht manufacturers in Taiwan and other
territories. The Company will also seek to enter other areas
related to the marine industry where the Company believes it can be
profitable.
A full-text copy of the Company's Form 10-K is available at:
https://tinyurl.com/murapdu9
About Vivic
Vivic Corp. was established under the corporate laws of the State
of Nevada on February 16, 2017. Beginning with a change in
management resulting from a change in control of the Company at the
end of 2018, the Company has explored and initiated operations in
various business areas related to the pleasure boat industry. These
included yacht sales, marine tourism, development of
electric-powered yachts, development and operation of yacht marinas
in Asia, and development of a yacht rental and timeshare service.
The Company's headquarters are maintained at its branch in the
Republic of China, Vivic Corp. It is mainly engaged in yacht
procurement, sales, and leasing services in Taiwan and other
countries.
[*] CHINA: Foreclosures Soar, Threatens to Choke Off Bank Profits
-----------------------------------------------------------------
The New York Times reports that banks in China are foreclosing on a
growing number of apartments after homeowners could not pay their
mortgages, as the country's housing crash threatens the financial
system.
The roster of homes seized and listed for auction leaped 43 per
cent last year, NY Times discloses citing official data. Numerous
Chinese banks have disclosed increases in mortgage defaults during
the first half of this year. The downward spiral in apartment
prices has since accelerated.
According to NY Times, the legal system is struggling to keep up
with evictions. In some cities, like Qingdao, foreclosed apartments
are being sold at auction before the occupants have moved out. The
buyers must persuade them to leave, finance and foreclosure
specialists said.
The increase in evictions and foreclosures, although still modest
by American standards, piles onto pressures on China's banks, NY
Times says. They face other losses related to the real estate
meltdown, including on loans to local governments, property
companies in default and buyers of unfinished apartments that
developers never delivered.
To make matters worse, corporate borrowers in China have long
posted real estate holdings as collateral. Bank managers are
finding that the collateral is worth much less than when the loans
were extended.
NY Times says the Chinese government is urging banks to lend more
to real estate developers and other borrowers as part of its
economic stimulus measures since late September. But the lenders
themselves face difficulties.
"Banks have long been the best ally and instrument of Chinese
policymakers, but could soon become their largest problem," NY
Times quotes Alicia García-Herrero, the chief economist for Asia
at Natixis, a French financial institution, as saying.
China's mostly state-owned banking system has plenty of money,
earning over US$600 billion a year in profits before setting aside
reserves to cover losses on unpaid loans. That means the banks can
slowly write off their losses against profits.
"They're going to gradually recognise the losses over the years,"
said Yan May, a China banking analyst at the lender UBS.
But China's banks play a crucial role feeding revenue into the
national government's budget, NY Times relays. The lenders pay
income taxes, transaction taxes and dividends to the finance
ministry equal to about 1 per cent of China's economy. Heavy losses
would hit bank profits and government revenues.
Foreclosures are a particularly sensitive subject in China, where
the government keeps a tight grip on society, says NY Times.
Regulators pressure banks to avoid taking actions against
homeowners that might set off public protests.
=========
I N D I A
=========
A H MALLICK: CARE Keeps D Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of A H
Mallick Agro Services & Cold Storage Private Limited (AHMASCSPL)
continue to remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.52 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 0.26 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 AHMASCSPL under the 'issuer
non-cooperating' category as AHMASCSPL had failed to provide
information for monitoring of the rating as agreed to in its Rating
Agreement. AHMASCSPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails
dated August 3, 2024, August 13, 2024, 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).
Analytical approach: Standalone
Outlook: Not applicable
Incorporated in January 2012, A. H. Mallick Agro Services and Cold
Storage Private Limited (AHMASCSPL) was promoted by the Mallick
family of Hooghly, West Bengal to set up a cold storage facility at
Hooghly, West Bengal. After successfully setting up the cold
storage facility, the company has commenced its commercial
operations from March 2013. The company is engaged in the business
of providing cold storage facility primarily for potatoes and is
operating with a storage capacity of 15,650 metric ton (MT). This
apart, the company is in potato trading business.
BOSHAN DEVELOPERS: CARE Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Boshan
Developers Private Limited (BDPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 16.40 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 16,
2023, placed the rating(s) of BDPL under the 'issuer
non-cooperating' category as BDPL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
BDPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated August 31, 2024,
September 10, 2024 and September 20, 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).
Analytical approach: Standalone
Outlook: Not Applicable
Established in the year 1996, BDPL is engaged in the business of
real estate development. Further from FY16, the company also
ventured into hospitality business and is managing a hotel at Goa.
CDR PROJECTS: ICRA Keeps B+/A4 Debt Ratings in Not Cooperating
--------------------------------------------------------------
ICRA has kept the Long-Term and Short-Term ratings of CDR Projects
Private Limited in the 'Issuer Not Cooperating' category. The
rating is denoted as [ICRA]B+(Stable)/[ICRA]A4; ISSUER NOT
COOPERATING.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Short Term- 18.75 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Long Term/ 5.04 [ICRA]B+(Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain
under issuer not cooperating
category
Long Term- 1.21 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term- 5.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with CDR Projects Private Limited, ICRA has been trying to seek
information from the entity so as to monitor its performance
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
The promoter of CDRPL, Mr. Anil Reddy has been engaged in the
construction business for over 15 years in the Medak district
through proprietorship firm. As the scale of business increased the
promoter incorporated private limited company – CDRPL in December
2010 which started operations during FY 12. The company is engaged
in civil contract works like building construction, road repairs,
etc. CDRPL has been participating in the tenders for construction
works within the Medak district from agencies like Andhra Pradesh
Educational Welfare Infrastructure Development Corporation
(APEWIDC), Panchayti Raj, etc.
CHALAPATHI EDUCATION: ICRA Keeps B+ Ratings in Not Cooperating
--------------------------------------------------------------
ICRA has kept the Long-Term ratings of Chalapathi Educational
Society (CES) in the 'Issuer Not Cooperating' category. The rating
is denoted as " [ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 2.60 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 3.19 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Long Term- 10.21 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with CES, ICRA has been trying to seek information from the entity
so as to monitor its performance Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
Chalapathi Educational Society (CES) was established in 1995 as a
non-profit society by its chief promoter Mr. Y.V. Anjaneyulu.
The society operates five institutions including Engineering
institutes, Pharmacy College, Degree college and Junior college.
The establishments of CES, namely, Chalapathi Institute of
Engineering Technology (CIET), Chalapathi Institute of Technology
(CIT), Chalapathi Institute of Pharmaceutical Sciences (CIPS),
Chalapathi Degree College (CDC) and Chalapathi Junior College
(CJC) are based in Guntur, Andhra Pradesh. The colleges are located
in Guntur, Andhra Pradesh (AP) and are well connected by bus or
train with Vijayawada (40 min), Hyderabad (5.00 hrs.) and Chennai
(7 hrs).
DEEPAK FASTENERS: CARE Assigns B+ Rating to INR275cr NCDs
---------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Deepak
Fasteners Limited (DFL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ 41.00 CARE B+; Stable/CARE A4
Short Term Reaffirmed
Bank Facilities
Short Term 15.00 CARE A4 Reaffirmed
Bank Facilities
Non-Convertible
Debentures 275.00 CARE B+; Stable Assigned
Rationale and key rating drivers
The long-term rating assigned to the bank facilities of DFL factors
in the growth in scale of operations and profitability of the
company during FY24 and 6MFY25 (refers to the period April 1, 2024
to September 30, 2024). The ratings further continue to derive
strength from experienced promoters of the company along with long
track record of operations, wide range of application of finished
goods leading to customer diversification and competitive business
advantage derived from the brand name 'Unbrako'.
However, the ratings continue to remain constrained by stretched
liquidity position and weak financial risk profile of the company.
During FY23 (FY refers to the period April 1 to March 31) audited
accounts, the company reported significant losses on account of
devaluation in inventory & receivables resulting in significant
erosion in net worth of the company. This, along with sustained
high debt levels, resulted in high overall gearing during FY23 and
FY24. Further despite the improvement in profitability, the
coverage indicators continued to remain weak on account of high
interest and principal obligations (under current debt structure)
for FY25. The ratings also take cognizance of the continued high
exposure in subsidiaries, working capital-intensive nature of
operations, susceptibility to raw material price volatility as well
as intense competition from organized and unorganized sector.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Significant reduction in the interest cost of the company through
interest reset and/or refinancing.
* Improvement in overall gearing ratio of the company to below
1.80x on a sustained basis.
Negative factors
* Significant increase in working capital requirement and resultant
weakening of liquidity position of the company.
* Reduced scale of operations with TOI moderating by over 10% and
PBILDT Margin sustaining below 16.50% resulting in further
weakening of debt coverage indicators.
* Any higher than envisaged support towards subsidiaries in the
form of investments, loans & advances or corporate guarantees.
Analytical approach: Standalone, factoring exposure towards
subsidiaries.
Outlook: Stable
Stable outlook reflects CARE's opinion that the company will
continue to benefit from the experienced promoters and competitive
business advantage derived from the brand name 'Unbrako'.
Detailed description of key rating drivers:
Key weaknesses
* Weak financial risk profile: The financial risk profile of the
company continued to remain weak characterized by overall gearing
of 8.86x in FY24, against 12.31x in FY23 and 2.58x in FY22. High
gearing in FY23 was on account of significant losses during the
year, which were as a result of devaluation in inventory
valuations, write-offs in value of receivables from foreign
subsidiaries and support provided to those subsidiaries, with DFL
being the corporate guarantor. Accounting for these extraordinary
adjustments led to significant erosion in net worth of the company
during FY23. Current debt obligation of the company carry a high
coupon rate of upto 21.75% which adds- further pressure on the cash
generation capability of the company. High exposure in foreign
subsidiaries also deteriorates the capital structure. Although, DFL
is in advance discussion for refinancing it's existing NCD
(Non-Convertible Debentures) with fresh NCD at a lower coupon rate,
in addition to conversion of OFCD (Optional Fully Convertible
Debentures) to CCPS (Compulsorily Convertible Preference Shares)
which would improve the cash flows as well as capital structure of
the company. Going forward, materialised of the transaction and
resultant improvement in overall financial risk profile shall
remain key monitorable.
* Working capital intensive nature of operations: The operations of
the company are working capital intensive marked by an operating
cycle of 155 days in FY24 (PY: 196 days). The average collection
period came in at around 54 days during FY24 (PY: 89 days). The
company is required to maintain an adequate inventory of raw
material for smooth running of its production processes and the
average inventory days stood at 126 days during FY24 (PY: 128
days). The improvement seen in operating cycle was primarily on
account of adjustments in inventory and receivables valuations
during FY23, as well as improved scale of operations during FY24.
The high working capital requirements were met largely through bank
borrowings which resulted in high utilization of around 97% of its
sanctioned working capital limits for last twelve months period
ended Jul 24.
* Susceptibility to raw material price volatility: The key raw
material of the company is steel wire rods, the prices of which are
dependent on the market conditions. Steel is a cyclical industry
which has strong correlation with economic cycles. This emerges
from the fact that its key users like automobiles, construction,
etc. are highly dependent on the health of the economy. Thus, DFL
being a smaller player in the industry gets affected during
cyclical downturns of the industry. Though the company passes on
the change in its raw material prices but with some time lag. The
company's margins are thus exposed to the volatility in its raw
material prices during this period.
* Intense competition from organized and unorganized sector: DFL
operates in an industry which comprises of several players in the
unorganized sector and is also characterized by high degree of
fragmentation. There also exist big sized players like Sterling
Tools limited, Sundram Fasteners Limited and Simmonds Marshall
Limited among others with established and integrated operations
along with strong marketing & distribution network resulting in
intense competition in the industry. This limits the bargaining
power of the company and puts pressure on the profitability
margins.
Key strengths
* Growth in scale of operations and improvement in profitability
with brand presence of "Unbrako": DFL reported improvement in scale
of operations with growth of ~24% in total operating income to
INR634 crore in FY24, from INR521 crore in FY23. Demand improved
during the year and DFL continues to ramp up the production and
supply, particularly from its Madhya Pradesh plant, which during
earlier years could not operate at optimum capacity due to flood
damage in FY18 and later with the pandemic as well as continued
financial stress in the company. Margins also improved with PBILDT
at 18.03% during FY24, against (-)2.52% during FY23. Profitability
during FY23 was impacted by accounting for devaluation in
inventory, however with no major adjustments during FY24, the
company was able to maintain satisfactory margins. This was further
aided by the brand presence of "Unbrako" in the market which
provides an edge to DFL over its competitors. Going forward,
sustenance of growth and profitability margins while reducing the
interest cost shall remain important from credit perspective.
* Experienced promoters with long track record of operations:
Incorporated in 1958, DFL was promoted by Mr. Kailash Chander Kalra
and later his two sons namely Mr. Sanjeev Kalra and Mr.
Deepak Kalra also joined the business in the year 1986 and 1989
respectively. The management has been present in the fasteners
industry for over five decades which shows strong business acumen
of promoters about fasteners business. The board is supported by a
team of trained and experienced professionals who have experience
of over two decades in their respective fields.
* Wide range of application of finished goods leading to customer
diversification: DFL is engaged in the manufacturing of high
tensile fasteners such as screws, nuts, bolts etc which find its
applications in the automotive sector, industrial sector, as well
as agriculture sector. The wide application of its finished goods
minimizes the risk of dependency on a single industry and allows
DFL to cater to a larger market. The majority of the revenue of DFL
is dependent on domestic sales. The domestic sales constituted ~86%
of total sales in FY24, which is on similar lines as FY23. The
customer base of the company though is diversified as top 10
customers constituting ~19-20% during past 2 years. The company
exports to over 40 countries and has many high value customers in
the domestic market.
Liquidity: Stretched
The liquidity position is stretched, marked by tightly matched cash
accruals to repayment obligations for existing NCDs. However, with
projected growth in scale of operations, the company shall be able
to repay its obligations. Working capital limit is almost fully
utilised with 98% utilisation during last 12 months upto Sep'24.
Repayment obligation of existing NCDs started in Feb'24, with
schedules repayments of ~Rs. 56 crore during FY25 which is tightly
matched with the projected cash accruals.
The company is in advanced discussions to refinance its existing
NCD with fresh NCD, carrying lower coupon rate with six months
moratorium and additional INR50 crore to support the incremental
working capital requirements of the company. The proposed
refinancing if materialises would improve the liquidity position of
the company to some extent.
Deepak fasteners Limited (DFL) was initially incorporated in the
year 1958 under a different constitution (other than company) and
promoted by Mr. Kailash Chander Kalra. DFL has been involved in the
manufacturing of high tensile industrial fasteners and engineering
goods for the last over five decades. In the year 1990, promoters
formed a private limited company i.e. Deepak
Fasteners Private Limited and later on converted in public company
named as Deepak Fasteners Limited. DFL has four manufacturing units
of fasteners manufacturing with a total capacity of around 49000
tons. All plants manufacture high tensile.
FINONE TECHNOLOGIES: Voluntary Liquidation Process Case Summary
---------------------------------------------------------------
Debtor: Finone Technologies Private Limited
Vriddhi, 4th floor, No. 558, 9th A Main,
Binnamangala 1st Stage, Bengaluru-560038
Liquidation Commencement Date: October 7, 2024
Court: National Company Law Tribunal, Bangalore Bench
Liquidator: Venkataraman Jayagopal
E-003, Victoria Haven, Patel Ram Reddy Road,
Domlur 1st Stage, Bangalore-560071
Email: finone.vl@gmail.com
Email: gopal_venus@hotmail.com
Ph. No: 9341240595
Last date for
submission of claims: November 6, 2024
HARPYARI DEVI: ICRA Keeps B+ Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA has kept the Long-Term ratings of Harpyari Devi Welfare
Society (HDWS) in the 'Issuer Not Cooperating' category. The rating
is denoted as "[ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 0.50 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 23.85 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with HDWS, ICRA has been trying to seek information from the entity
so as to monitor its performance Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
Incorporated in 2001 by Mr. Bhadana, HDWS currently operates three
educational institutions-two schools and one college in Faridabad
(Haryana). While the first school is a K-12 school and has been
operational since 2004, the second school commenced operations in
AY2012-13 and caters to students up to Standard X. The society has
completed the capex for the senior wing of the second school, which
will cater to students from Standard IV- XII. Besides schools, HDWS
also operates a college- 'Aravali College of Advanced Studies in
Education' in Faridabad which offers B.Ed and M. Ed. Courses. The
institutes collectively catered to 4,170 students in AY15-16
vis-à-vis 3,872 students in the previous academic year. The
society is managed by Mr. Bhadana who has over a decade of
experience in the education sector and also manages another
educational trust (Edquest Welfare Trust) which operates the
'Aravali College of Engineering and Management' in Faridabad.
ISHWAR CONSTRUCTIONS: Insolvency Resolution Process Case Summary
----------------------------------------------------------------
Debtor: Ishwar Construction Pvt Ltd
C-wing Parmar Trade Centre,
12 Connaught Road,
Pune, Maharashtra, India 411001
Insolvency Commencement Date: October 8, 2024
Estimated date of closure of
insolvency resolution process: April 6, 2025
Court: National Company Law Tribunal, Mumbai Bench
Insolvency
Professional: Mr. Vijay P. Lulla
201, Satchitanand Bldg,
12th Road, Opp. Ram Mandir,
Khar (West) Mumbai-400 052
Email: vijayplulla@rediffmail.com
203-B, Arcadia Building,
2nd Floor Nariman Point Mumbai- 400021
Email: ishwarconstructions.cirp@gmaill.com
Last date for
submission of claims: October 30, 2024
JAATVEDAS CONSTRUCTION: CRISIL Cuts LT/ST Debt Ratings to D
-----------------------------------------------------------
CRISIL Ratings has downgraded its ratings on the bank facilities of
Jaatvedas Construction Company Private Limited (JCCPL) to 'CRISIL
D/CRISIL D Issuer Not Cooperating' from 'CRISIL B/Stable/CRISIL A4
Issuer Not Cooperating' based on publicly available information.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Rating - CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
Short Term Rating - CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL A4 ISSUER NOT
COOPERATING*')
CRISIL Ratings has been consistently following up with JCCPL 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-cooperation 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 JCCPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on JCCPL
is consistent with 'Assessing Information Adequacy Risk'.
CRISIL Ratings has downgraded its ratings on the bank facilities of
JCCPL to 'CRISIL D/CRISIL D Issuer Not Cooperating' from 'CRISIL
B/Stable/CRISIL A4 Issuer Not Cooperating' based on publicly
available information.
Incorporated in 2011 in Mumbai and promoted by Mr. Ankit Patel, Mr.
Narendra Patel, Mr. Hitesh Patel, and Mr. Jitendra Patel, JCCPL
constructs industrial, commercial, and residential buildings for
reputed real estate players. In November 2017, Choice International
Limited also became a shareholder of JCCPL after investing INR15
crore in the form of equity.
JAGDISH COTTON: CRISIL Lowers Rating on INR28cr Cash Loan to B+
---------------------------------------------------------------
Due to inadequate information and in line with the Securities and
Exchange Board of India guidelines, CRISIL Ratings had migrated its
rating on the long-term bank facility of Jagdish Cotton Industries
(JCI) to 'CRISIL BB-/Stable Issuer Not Cooperating'. However, the
firm's management has subsequently started sharing the information
necessary for a comprehensive review of the rating. Consequently,
CRISIL Ratings is migrating the rating to 'CRISIL B+/Stable' from
'CRISIL BB-/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 28 CRISIL B+/Stable (Migrated from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
The rating reflects the firm's stretched liquidity with bank
utilisation of more than 100% for the 12 months through September
2024. The rating also reflects the weak financial risk profile of
JCI, its working capital-intensive operations, and susceptibility
to volatility in cotton prices and regulatory changes. These
weaknesses are partially offset by the extensive experience of the
partners in the textile industry.
Analytical Approach
CRISIL Ratings has evaluated the standalone business and financial
risk profiles of JCI. Unsecured loan of INR12.96 crore in the
business as on March 31, 2024, has been treated as 75% equity and
25% debt.
Key Rating Drivers & Detailed Description
Weaknesses:
* Weak financial risk profile: Gearing and total outside
liabilities to adjusted networth (TOLANW) ratio were high at 1.73
times and 2.07 times, respectively, as on March 31, 2024. The debt
protection metrics were weak in the past, due to high gearing and
low accrual from operations. Interest coverage ratio stood at 1.03
times in fiscal 2024. However, the debt protection metrics are
likely to improve over the medium term.
* Working capital-intensive operations: Gross current assets (GCAs)
stood at 139 days as on March 31, 2024, marked by sizeable
receivables of 77 days and inventory of 41 days. GCAs were between
100 and 140 days over the past three fiscals through 2024. CRISIL
Ratings believes that the working capital cycle will remain large
over the medium term.
* Susceptibility to volatility in cotton prices and regulatory
changes: As cotton is an agricultural commodity, its availability
depends on the monsoon. Any government intervention or fluctuation
in global cotton output can lead to a sharp volatility in cotton
prices. Any sudden change in regulations can distort the market
prices and affect the profitability of players in the cotton value
chain, including ginners.
Strength:
* Extensive experience of the partners: The two-decade-long
experience of the partners in the textile industry, their strong
understanding of the market dynamics and established relationships
with suppliers and customers will continue to support the business
risk profile. These factors have enabled the firm to improve its
customer base and scale up operations. The turnover is likely to
grow by 15-20% over the medium term. Timely funding from the
partners should keep liquidity comfortable.
Liquidity: Stretched
Liquidity remains constrained by low cash accrual and high bank
limit utilisation. Annual cash accrual is expected at INR0.10 crore
against nil term debt over the medium term. Bank limit utilisation
was at 100% on average for the 12 months through September 2024.
The current ratio was moderate at 1.56 times as on March 31, 2024.
The partners are likely to extend support through equity and
unsecured loan to cover the working capital requirement and debt
obligation.
Outlook: Stable
CRISIL Ratings believes JCI will continue to benefit from the
extensive experience of its partners in the textile industry and
the established relationships with clients.
Rating sensitivity factors
Upward factors:
* Sustained revenue growth of 25% over the medium term leading to
high net cash accrual
* Improvement in the bank limit utilization
Downward factors:
* Sustained decline in revenue or operating margin below 2.5%
* Deterioration in financial risk profile
JCI was formed as a partnership firm in 1998. The firm is engaged
in cotton ginning at its facility located in Mehsana, Gujarat. The
operations are managed by Mr Jagdishkumar Natwarlal Patel, Mr
Jigarkumar Kashiram Patel, Mr Harshil Jagdish Patel, Mr Jigesh
Jitendra Patel, Mr Viral Jitendra Patel and Ms Payal Harshil
Patel.
JET AIRWAYS: Supreme Court Orders Carrier's Liquidation
-------------------------------------------------------
The Economic Times reports that the Supreme Court on Nov. 7 ordered
liquidation of grounded Indian airline Jet Airways, after finding
National Company Law Appellate Tribunal (NCLAT) judgment was in
flagrant disregard of the the top court's January 2023 judgment.
ET relates that the top court stated that the NCLAT disregarded the
Court's January 2023 order by allowing the adjustment of a INR150
crore performance bank guarantee (PBG) against an infusion
requirement of INR350 crore from the Jalan-Kalrock Consortium
(JKC), Jet Airways' resolution applicant.
The Naresh Goyal-led airline, which was once India's premiere
airline, has been grounded since 2019. Later, NCLAT had approved
the transfer of Jet's ownership rights to a consortium of UK's
Kalrock Capital and United Arab Emirates-based entrepreneur Murari
Lal Jalan.
According to ET, the apex court on Nov. 7 noted that liquidation
will be in the best interest of its lenders and employees as
Jalan-Kalrock Consortium failed to implement the resolution plan,
five years since its approval.
Further, the bench of Chief Justice D Y Chandrachud, Justices J B
Pardiwala and Manoj Misra directed the National Company Law
Tribunal (NCLT), Mumbai to take steps for appointment of
liquidator, ET relays.
The Supreme Court pronounced its judgment on a batch of appeals
including one by lenders against the National Company Law Appellate
Tribunal's order approving the takeover of Jet Airways (India) Ltd.
by the JKC.
The lenders, led by State Bank of India, have argued that the
consortium has failed to meet the conditions for the takeover of
the airline and is no longer in a position to revive the airline.
ET adds that Justice Pardiwala said that the litigation surrounding
the airline was "an eye-opener" with numerous lessons for India's
Insolvency and Bankruptcy Code (IBC).
According to ET, the Supreme Court on Nov. 7 found the NCLAT's
judgment perverse, noting that it misread material evidence and
disregarded legal principles. It said that the bank guarantee was
meant to stay active until the conclusion of the insolvency
process.
Consequently, the Supreme Court noted JKC's failure to infuse the
promised funds of INR350 crore, which makes enough grounds for Jet
Airways' fate towards liquidation.
The court also permitted lenders to encash PBG of INR150 crore.
The top court was to decide whether to uphold the takeover of Jet
Airways, making it the first-ever successful completion of a
bankruptcy resolution of an airline in India, or liquidate the
airline, a prayer made by the lenders, ET adds.
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.
K. D. SINGH: CARE Keeps D Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of K. D.
Singh Poultries Private Limited (KDSPPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated September 25,
2023, placed the rating(s) of KDSPPL under the 'issuer
non-cooperating' category as KDSPPL had failed to provide
information for monitoring of the rating as agreed to in its Rating
Agreement. KDSPPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails dated August
10, 2024, August 20, 2024, August 30, 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).
Analytical approach: Standalone
Outlook: Not applicable
Ranchi-based, K. D. Singh Poultries Private Limited (KDSPPL)
incorporated in September 2007, was promoted by the Singh family of
Ranchi, Jharkhand with Mr. Kapil Deo Singh being the main promoter.
KDSPPL is engaged in trading of eggs.
MAST INNOVATIVE: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Most Innovative Products Private Limited
113, 17th A Cross,
8th Main, Malleshwaram,
Banglore, Karnataka,
India-560055
Insolvency Commencement Date: October 22, 2024
Estimated date of closure of
insolvency resolution process: April 20, 2025 (180 Days)
Court: National Company Law Tribunal, Bangalore Bench
Insolvency
Professional: Addanki Haresh
No. 36/1, 2nd Floor,
Munivenkatappa Complex,
Bellary Road, Ganga Nagar
Bangalore-560032
Email: addanki.haresh@gmail.com
Email: mast.cirp@gmail.com
Last date for
submission of claims: November 5, 2024
MITTAL CONSTRUCTION: ICRA Keeps B+ Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has kept the Long-Term ratings of Mittal Construction Unit
(MCU) in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 11.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 9.00 [ICRA]B+(Stable); ISSUER NOT
Non Fund Based- COOPERATING; Rating continues
Others to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with MCU, ICRA has been trying to seek information from the entity
so as to monitor its performance. Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
Mittal Construction Unit (MCU) started operations as a partnership
between Mr. S K Mittal and Mr.
R K Mittal in 1996. With its head office in Muzzafarnagar, Uttar
Pradesh the firm started as a contractor for civil construction
projects in state government sponsored projects. Over the years,
the firm gained capability to bid for work tendered by central
government related works mainly by National Building Construction
Corporation (NBCC). NBCC tenders contracts for civil and industrial
construction for central government entities. Being present in
Uttar Pradesh and having a track record of executed work in public
sector, the firm forayed into private sector wherein it executed
factory buildings and offices for sugar mills and other industries.
Over the years, the firm developed relationships with many private
players in the sugar industry and executed works for many sugar
mills.
MSO HOSPITALITY: Voluntary Liquidation Process Case Summary
-----------------------------------------------------------
Debtor: MSO Hospitality and Tourism Private Limited
B1207, Brigade Exotica, Old Madras Road,
Budigere Cross, Avalahalli, Bidrahalli,
Bangalore, Bangalore,
South, Karnataka, India, 560049
Liquidation Commencement Date: October 22, 2024
Court: National Company Law Tribunal, Allahabad Bench
Liquidator: Jayant Prakash
15/775, Vasundhara, Ghaziabad-201012
Uttar Pradesh
Email: jayant_prakash@yahoo.com
Mobile No: +91-9818482663
Last date for
submission of claims: November 21, 2024
NEMCARE HOSPITAL: CARE Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Nemcare
Hospital Tezpur Private Limited (NHTPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated September 26,
2023, placed the rating(s) of NHTPL under the 'issuer
non-cooperating' category as NHTPL had failed to provide
information for monitoring of the rating as agreed to in its Rating
Agreement. NHTPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails dated August
11, 2024, August 21, 2024, August 31, 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).
Analytical approach: Standalone
NHTPL was incorporated on May 23, 2016 by Guwahati based NEMCARE
Group. North East Medical Care & Research Centre Pvt Ltd (NEMCRCPL)
holding 88.64% stake in NHTPL is the flagship company of the group
which is already operating a 100 bed multispeciality hospital in
Guwahati, Assam since last 2 decade. This apart, Nemcare Hospital
Pvt Ltd (NHPL, IND D) another company of the group is running a 200
bed multi-speciality hospital in Guwahati. NHTPL is setting up a 60
bed multi-speciality hospital in Tezpur, Assam at an estimated cost
of INR25.98 crore (being funded at a debt equity ratio of 1.7:1).
The commencement of the same has been postponed from April'18 and
the project is expected to be completed by April 2020. Dr. Mihir
Kumar Baruah, Director [MBBS, PGDHHM] along with Dr. Hiteshwar
Baruah (MBBS, MAIMS, FAIMS) serving as the chairman and Managing
Director of NHTPL is looking after day to day operations of the
company. The promoters are having an experience of more than two
decades in the healthcare industry.
NEW WORLD: ICRA Keeps B+ Debt Rating in Not Cooperating Category
----------------------------------------------------------------
ICRA has kept the Long-Term ratings of New World Landmark LLP (NWL)
in the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 150.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with NWL, ICRA has been trying to seek information from the entity
so as to monitor its performance Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
NWL is a limited liability partnership firm belonging to the Mittal
Brothers Group. The firm is currently developing a project named
High Mont, with a saleable area of 7,49,967 sq. ft. in Hinjewadi,
Pune in Maharashtra. The project is being developed in two phases
and caters to middle income group segment. The first phase is
nearing handover, whereas the second phase is expected to be
completed by December 2023. NWL holds 80% share in NUI, which is
promoted by Mr. Sunil Mittal and Mr. Dilip Mittal. The firm is
currently developing a project named One Place, in Baner, Pune in
Maharashtra. The project entails the construction of a single
commercial building, with a saleable area of 1,63,660 sq. ft. The
project is expected to be completed by December 2023.
ORION WATER: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Orion Water Treatment Private Limited
Survey No. 1436, Plot 852,
VGP Ramanujar Town Part II,
Sriperumbudur Village & Taluk,
Kanchipuram District,
Tamil Nadu, India, 602105
Insolvency Commencement Date: October 18, 2024
Estimated date of closure of
insolvency resolution process: April 16, 2025
Court: National Company Law Tribunal, Chennai Bench
Insolvency
Professional: Sandeep Kothari
Prince Plaza, Office No. 9
First Floor, No. 73.
Pantheon Road, Egmore,
Chennai, Tamil Nadu 600008
Email: ipsandeepkothari@gmail.com
Email: orionwatercirp@gmail.com
Last date for
submission of claims: November 6, 2024
PRATIBHA MILK: CARE Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Pratibha
Milk Industries (PMI) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 54.93 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 18,
2023, placed the rating(s) of PMI under the 'issuer
non-cooperating' category as PMI had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
PMI continues to be non-cooperative despite repeated requests for
submission of information through emails dated September 2, 2024,
September 12, 2024 and September 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).
Analytical approach: Standalone
PMI is a partnership firm of Mr. Satish Chavan and his wife Mrs.
Ashwini Chavan and is part of the Chavan Group. The group has its
presence in milk business since 2002, and has been majorly engaged
in trading of milk and milk products and government contract
business till 2009.
R A MOTORS: CARE Reaffirms B+ Rating on INR65.57cr LT Loan
----------------------------------------------------------
CARE Ratings has reaffirmed ratings on certain bank facilities of R
A Motors Private Limited (RAMPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 65.57 CARE B+; Stable Reaffirmed
Rationale and key rating drivers
The reaffirmation of the ratings assigned to the bank facilities of
RAMPL continue to remain constrained due to the company's small
scale of operations with low profitability margins, leveraged
capital structure coupled with weak debt coverage indicators along
with cyclical nature of the industry. The ratings also factor in
regional concentration risk and linkage to the fortunes of Tata
Motors Limited. However, rating derives strength from experienced
promoters in automobile dealership industry and benefit from long
standing relationship with Tata Motors Limited.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Increase in scale of operations above INR300 crores with
improvement in PBILDT margin above 3.50% on sustained basis.
* Improvement in debt coverage parameters marked by interest
coverage of more than 2.00 times.
Negative factors
* Deterioration in liquidity position on account of elongation of
operating cycle beyond 100 days on sustained basis.
* Any further deterioration in interest coverage ratio below
1.00x.
* Significant decline in scale of operations below ₹200 crores
with PBILDT margins falling below ~2.00% on sustained basis.
Analytical approach: Standalone
Outlook: Stable
The Stable outlook reflects that the company will continue to
benefit from experience of the promoters in auto dealership
industry and established association with its original equipment
manufacturer translating into adequate performance in the
near-to-medium term.
Detailed description of key rating drivers:
Key weaknesses
* Small scale of operations with low profitability margin: RAMPL's
scale of operations remained small, with a total operating income
of INR260.39 crore in FY24 (refers to April 1, 2023 to March 31,
2024), marginally up from INR260.17 crore in FY23. The moderate
scale of operations was due to fewer vehicles sold, offset by
higher vehicle prices during the year. The company operates in the
passenger vehicle, commercial vehicle, and tools and spare parts
segments. In FY24, the passenger vehicle segment grew by ~12%,
while the tools and spare parts segment increased by ~5%. However,
the commercial vehicle segment saw a moderation of 2.20%. The
profitability margins of the company remained low as marked by
PBILDT margin and PAT margin of 2.64% (PY:2.46%) and 0.31% (PY:
0.25%) respectively in FY24. The company earned a total operating
income of INR131.20 crore and profit after tax of INR0.46 crores in
H1FY25 (refers to April 1,2024 to September 30,2024).
* Leveraged capital structure and Weak debt coverage indicators:
The debt profile of the company comprised of term debt to the tune
of INR6.13 crores, working capital limit utilized the tune of
INR59.95 crores as on March 31,2024. The capital structure of the
company deteriorated and stood leveraged at 4.92x as on the balance
sheet date ending March 31, 2024, on account of increase in debt
level of the company against small tangible net worth base.
Further, owing to decrease in gross cash accruals (GCA) levels, the
debt coverage indicators of the company as marked by
interest coverage ratio and total debt to GCA deteriorated and
stood weak at 1.15x and 51.52x respectively in FY24, as against
1.39x and 26.50x respectively in FY23.
* Cyclical nature of the industry: The automotive sector is
dependent on the economic growth, credit conditions and consumer
confidence. The auto industry is inherently vulnerable to economic
cycles and is highly sensitive to interest rates and fuel prices. A
hike in interest rate increases the costs associated with the
purchase leading to purchase deferral. The fuel prices have a
direct impact on the running costs of the vehicle and any hike in
the same would lead to reduced disposable income of the consumers,
influencing the purchase decision. The policies implemented by
government also have a direct bearing on the sale of passenger
vehicles.
* Regional concentration and linkage to the fortunes of Tata Motors
Limited: The operations of the company are geographically
concentrated in the region of Uttar Pradesh. Further, the company
procures its product directly from its OEM, i.e., Tata Motors
Limited. Thus, the fortunes of the company are directly linked to
its OEM which exposes the company's revenue growth and
profitability to its OEM's future growth prospects. Any impact on
business and financial profile of the OEM will also have an impact
on the growth prospects of the company.
Key strengths
* Experienced promoters in automobile dealership industry: RAMPL
was incorporated in 2004 by Mr. Ajay Chaturvedi and Ms. Usha
Sharma. Mr. Ajay Chaturvedi is a graduate by qualification,
having more than three decades of experience in diversified
business lines like automobile dealership, vehicle financing and
warehousing and logistics etc. though RAMPL and through individual
capacity. He looks after the overall operations of the company and
is well supported by his wife, Ms. Usha Sharma, who is also a
graduate by qualification, having an overall experience of one and
a half decade in this business through her association with RAMPL.
Prior to this she was associated with education sector. The
promoters of the company are assisted by a team of professionals
who are highly experienced in their respective domains.
* Benefit from long standing relationship with Tata Motors Limited:
The company has long track record of operations in diversified
business lines of sale of vehicles, vehicle financing and logistics
and warehousing through individual capacity. The company has long
standing association with Tata Motors Limited and is an authorised
dealer of entire range of commercial and passenger vehicles of TATA
Motors Limited (rated CARE AA+; Stable/ CARE A1+)It deals in
vehicles like Tiago, Nexon, Punch, Curvv, Harrier, Safari, etc. in
Passenger Vehicle (PV) segment and Ace, Prima, Magic, Ultra,
Winger, M & HCV, light trucks etc. in Commercial Vehicle (CV)
segment.
Liquidity: Stretched
The liquidity position of the company remains stretched as marked
by 77% utilisation of working capital limits for the past 12 months
ended September 2024. Further, the current ratio stood comfortable
at 1.17x, while the quick ratio stood at 0.62x as on March 31,
2024. The cash-flow from operations was negative at INR8 crore in
last the FY, unencumbered cash and bank balance was around INR6.16
crore as on March 31, 2024. The company has tightly matched
accruals vis-à-vis repayment obligations. During the year, company
has generated net cash accrual (NCA) of INR1.28 crore during FY24
and is expected to generate NCA of INR1.33 Crore in FY25, against
repayment obligation of approx. INR1.00 crore in the same year.
RAMPL was incorporated in December 2004 as a private limited
company and is currently being managed by Mr. Ajay Chaturvedi and
Ms. Usha Sharma. Mr. Ajay Chaturvedi has an overall experience of
more than three decades in diversified business lines of sale of
vehicles, vehicle financing and logistics and warehousing through
individual capacity. The company is an authorised dealer
of entire range of commercial and passenger vehicles of TATA Motors
Limited and operates with a total of 18 facilities, including four
3S (sales, service and spare parts) facilities in Etah, Badaun and
Moradabad, U.P. and 14 1S(Sales) showrooms in various districts in
Uttar Pradesh. The sale of vehicles contributes ~92.00% of the
total revenue of the company and the remaining 8.00% is from sale
of spare parts and servicing.
RLC ENGINEERS: CRISIL Lowers Rating on INR6cr Proposed Loan to B
----------------------------------------------------------------
CRISIL Ratings has downgraded its ratings on the facilities of RLC
Engineers Private Limited (RLC) to 'CRISIL B/Stable/CRISIL A4' from
'CRISIL BB-/Stable/CRISIL A4+'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 0.9 CRISIL B/Stable (Downgraded
from 'CRISIL BB-/Stable')
Overdraft Facility 0.1 CRISIL A4 (Downgraded from
'CRISIL A4+')
Proposed Working 6.0 CRISIL B/Stable (Downgraded
Capital Facility from 'CRISIL BB-/Stable')
The downgrade considers the deterioration of RLC's credit risk
profile, marked by sustained weakness in profitability due to
continued operating losses. Financial risk profile has also
remained weak with subdued debt protection measures and high bank
limit utilisation. Furthermore, minimal expected cash accrual over
the medium term leaves negligible liquidity cushion to face any
downturn.
The ratings reflect modest scale of operations amid intense
competition and weak financial risk profile of the company. These
weaknesses are partially offset by extensive experience of the
promoters in the electrical equipment industry.
Analytical Approach
CRISIL Ratings has evaluated the standalone business and financial
risk profiles of RLC.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations and susceptibility of profitability to
material cost: Revenue has been rangebound at INR33-38 crore for
three fiscals through March 2024 due to capacity constraint.
Further, intense competition from various players may continue to
constrain scalability, pricing power and profitability. Volatility
in input cost also impacts the operating margin. The margin stood
negative at -1.8% for fiscal 2024; it is expected to revive over
medium term and will remain a key monitorable.
* Weak financial risk profile: The financial risk profile has been
restricted by operating losses incurred by the company. Networth
stood low at INR5.7 crore as on March 31, 2024, with gearing at
0.16 time and total outside liabilities to adjusted networth
(TOL/ANW) ratio at 1.75 times. The company has further paid off its
term loans during fiscal 2024, however, debt protection metrics
remained subdued due to weak profitability. Sustained improvement
in profitability leading to improvement in debt protection metrics
remains a key monitorable.
Strengths:
* Extensive experience of the promoters: The two-decade-long
experience of the promoters in the electrical components and
equipment industry, their strong understanding of market dynamics
and healthy relationships with customers and suppliers will
continue to support the business risk profile.
Liquidity: Poor
Cash accruals is expected to be modest at INR15-20 lakh per annum
for fiscals 2025 and 2026, against nil yearly repayment obligation
for the same period. Bank limit utilisation stood at around 72% for
the 12 months through September 2024. Current ratio is estimated at
1.08 times and cash and bank balances at INR17 lakh as on March 31,
2024.
Outlook: Stable
RLC will continue to benefit from the extensive experience of the
promoters.
Rating Sensitivity Factors
Upward Factors
* Steady revenue growth and/or operating margin above 2%, leading
to higher-than-expected cash accruals
* Improvement in debt protection metrics and financial risk
profile
Downward Factors
* Decline in revenue or sustained negative operating margin,
weakening the liquidity profile
* Any major, debt-funded capital expenditure or a sizeable stretch
in the working capital cycle impacting the networth, thereby
weakening the capital structure with TOL/ANW ratio above 2 times
RLC, incorporated in 1999, manufactures heat shrinkable accessories
for the power and telecommunication sectors. This Mumbai-based
company is promoted by Mr Percy Faramroze Lakadia and Mr Swapan
Sisirkumar Mukherjee.
SAI POULTRY: CARE Keeps B- Debt Rating in Not Cooperating Category
------------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Sai
Poultry Farm (SPF) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.30 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 13,
2023, placed the rating(s) of SPF under the 'issuer
non-cooperating' category as SPF had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
SPF continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated July 29, 2024,
August 8, 2024, August 18, 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).
Analytical approach: Standalone
Outlook: Stable
SPF is a partnership firm incorporated in the year 1983 by Mr. R
Chinnapa Gounder and his son Dr C K Samy. Currently, the firm has
four active partners namely Mr R Chinnapa Gounder, Dr C K Samy, Dr
S Senthil kumar (son of Dr C K Samy) and Dr S Shornalatha (wife of
Dr S Senthil kumara). The firm is engaged in the sale of eggs and
cull birds. As on January 31, 2017, SPF has around 7 lakh hens at
its four farms spread across 28 acres in Chittode, TamilNadu (TN).
SPF sells around 4 lakh eggs per day.
Status of non-cooperation with previous CRA: CRISIL has continued
the ratings assigned to the bank facilities of SPF to the 'issuer
not-cooperating' category vide press release dated October 23, 2024
on account its inability to carryout review in the absence of
requisite information from the firm.
SAISUDHIR INFRA: ICRA Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has kept the Long-Term ratings of Saisudhir Infrastructures
Limited (SSIL) in the 'Issuer Not Cooperating' category. The rating
is denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 13.42 [ICRA]D; ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain under
'Issuer Not Cooperating'
Category
Long-term- 147.68 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with SSIL, ICRA has been trying to seek information from the entity
so as to monitor its performance. Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
SSIL is incorporated in 1999 and the company is ISO 9001:2000
certified. SSIL has an expertise in water supply & waste water
treatment segment. The projects executed are in the field of water
distribution networks, sewerage treatment plants etc. Over the past
3-4 years, the company has diversified into other business segments
like- solid waste management plants, power
transmission and sub-stations, solar power projects, building
construction and irrigation projects. Furthermore, SSIL has
diversified its scope of activities to other electrical works and
the installation of the pump systems. SSIL is promoted by Mr. D.
Shreedhar Reddy of Hyderabad and apart from the promoters, Private
Equity players have invested in the company and hold about 32% of
the shareholding.
SUDARSHAN TECHNO: CRISIL Cuts Corporate Credit Rating to B+
-----------------------------------------------------------
CRISIL Ratings has downgraded its corporate credit rating on
Sudarshan Techno Solution Pvt Ltd (STSPL) to 'CRISIL B+/Stable from
'CRISIL BB-/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Corporate Credit - CRISIL B+/Stable (Downgraded
Rating from 'CRISIL BB-/Stable')
The rating action reflects the weakening business risk profile of
the company owing to a 30% dip in revenue leading to
lower-than-expected cash accrual for fiscal 2024, primarily due to
spillover of certain orders to fiscal 2025. Although, the scale is
expected to remain steady in fiscal 2025, driven by bills raised
for previous year's orders, timely bagging of new orders providing
revenue visibility remains a key monitorable. The financial risk
profile remains moderate with below-average capital structure. Net
cash accrual is expected to be sufficient to meet debt obligations
in fiscals 2025 and 2026 supporting liquidity.
The rating reflects STSPL's modest scale of operations and
susceptibility to risks inherent in tender-based business and order
execution. These weaknesses are partially offset by the extensive
experience of the promoters in the technology distribution industry
and the company's moderate debt protection metrics.
Analytical Approach
CRISIL Ratings has evaluated the standalone business and financial
risk profiles of STSPL.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations: The company's revenue moderated to
INR11.13 crore in fiscal 2024 from INR15.7 crore in fiscal 2022.
This was because billing of orders worth around INR17 crore spilled
over to the next fiscal. The modest scale of operations will
continue to limit the operational flexibility of the company.
Sustained revenue growth, driven by the inflow of new projects and
their timely execution, will remain monitorable.
* Susceptibility to risks in tender-based operations: The company
operates in a tender-based industry, which restricts revenue growth
to its ability to win tenders. Also, intense competition
necessitates aggressive bidding to get contracts, which limits the
operating margin. The company does not have any significant orders
in hand to provide revenue visibility for the upcoming fiscals.
Strengths:
* Extensive industry experience of the promoters: The promoters
have experience of over five years in the technology distribution
industry. This has given them an understanding of the market
dynamics and enabled them to establish healthy relationships with
suppliers and customers. The company has also collaborated with
Munitions India Ltd (MIL), IIT Kanpur and various other players for
research and development of drones used/required by the Indian
Army.
* Moderate debt protection metrics: STSPL's debt protection metrics
have been comfortable, despite high leverage, due to moderately
healthy profitability. The interest coverage and net cash accrual
to total debt (NCATD) ratios were 4.47 times and 0.23 time,
respectively, as on March 31, 2024. With no major debt-funded
capital expenditure (capex), STSPL's debt protection metrics are
expected to remain comfortable.
Liquidity: Poor
Net cash accrual is expected at INR1.28-1.50 crore per annum in
fiscals 2025 and 2026 against debt obligation of INR0.28-0.33 crore
per year. Unencumbered cash and bank balance was INR0.43 crore as
on March 31, 2024. The company has an overdraft facility of INR3
crore which was utilised 25% on average over the 12 months through
June 2024. The current ratio stood at 0.64 time as on March 31,
2024.
Outlook: Stable
CRISIL Ratings believes STSPL will continue to benefit from its
longstanding relationships with principals and the experience of
the management to mitigate the inherent risks in the business.
Rating Sensitivity Factors
Upward factors:
* Significant increase in revenue and stable operating margin,
leading to cash accrual above INR1.5 crore
* Improvement in the working capital cycle leading to better
liquidity
Downward factors:
* Steep decline in revenue or operating profitability, leading to
net cash accrual below INR0.75 crore
* Large, debt-funded capital expenditure or a substantial stretch
in the working capital cycle
STSPL was incorporated in 2018. It is a wholesaler and distributor
of IT peripherals, engineering and technology related products,
safety and security equipment, such as unmanned aerial vehicles
(UAVs), drone cameras, power products and accessories. It is based
in Mumbai and promoted by Mr Suman Hirji Mota, Mr Hiten Kunvarji
Gala and Mr Saurabh Suman Mota.
TULSIIMPEX FORWARDERS: Voluntary Liquidation Process Case Summary
-----------------------------------------------------------------
Debtor: TULSIIMPEX FORWARDERS PRIVATE LIMITED
Office 304, T.F., Addor Ambition,
Navrang Circle to stadium Road,
B/s. Vimal House, Navrangpura, Ahmedabad,
Ahmedabad, Gujarat, India, 380009
Liquidation Commencement Date: October 24, 2024
Court: National Company Law Tribunal, Ahmedabad Bench
Liquidator: Mr. Manish S. Buchasia
306, Gala Mart, Nr. Sobo Centre,
Before Safal Parisar,
S Bopal Main Rd,
Bopal, Ahmedabad, Gujarat 380058
Email: manishbuchasiacs@gmail.com
Mobile No: 09327916394
Last date for
submission of claims: November 23, 2024
VARDHMAN BUILDPROP: CARE Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Shree
Vardhman Buildprop Private Limited (SVBPL) continue to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non-convertible 35.00 CARE D; ISSUER NOT COOPERATING
Debentures Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Limited (CARE Ratings) had, vide its press release
dated December 27, 2019, placed the rating of SVBPL under the
'issuer non-cooperating' category, as SVBPL had failed to provide
information for monitoring of the rating. SVBPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails dated September 24, 2024; October 4,
2024 and October 14, 2024. In line with the extant Securities and
Exchange Board of India (SEBI) guidelines, CARE Ratings has
reviewed the rating on the basis of the best available information,
which however, in CARE Ratings' opinion is not sufficient to arrive
at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not applicable
Detailed description of key rating drivers:
CARE Ratings has not received any information except the financials
for FY21 (extracted from the Registrar of Companies [RoC]).
Key weaknesses
* Ongoing delays in debt servicing: As per the information received
from the debenture trustee, the company has delayed in debt
servicing of the interest payments.
* Subdued industry scenario: With the on-going economic conditions,
the real estate industry is currently facing issues on many fronts,
including subdued demand, curtailed funding options, rising costs,
restricted supply due to delays in approvals, etc., thereby
resulting in stress on cash flows of developers. The industry has
seen low demand in the recent past, primarily due to factors like
sustained high level of inflation leading to high interest rates
and adverse impact on the buying power and affordability for the
consumers.
Key strengths
* Experienced promoters: SVBPL is a real estate development
company, incorporated in 2010. It belongs to 'Shree Vardhman group'
and is promoted by Sandeep Jain who has an experience of about two
decades in the real estate industry. The promoter through other
group companies have launched and successfully delivered several
real estate development projects through different special purpose
vehicles (SPVs) in Sonepat, Kurukshetra and Gurgaon (constituting a
total saleable area of 13.34 lsf).
SVBPL, incorporated in 2010, is engaged in the development of real
estate through construction of residential and commercial
properties in the Delhi/NCR region. SVBPL, a part of 'Shree
Vardhman group', is currently involved in the execution of a
residentialcum-commercial project 'Mantra', with the total saleable
area of 9.95 lakh square feet (lsf), located at Sector-67, Gurgaon.
The group has an experience of execution and successful completion
of real estate development projects, viz., township at Kurukshetra,
and group housing project at Sonepat constituting total saleable
area of 13.34 lsf.
VARDHMAN INFRAHEIGHTS: CARE Keeps D Debt Rating in Not Cooperating
------------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Shree
Vardhman Infraheights Private Limited (SVIPL) continue to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non-convertible 140.00 CARE D; ISSUER NOT COOPERATING
Debentures Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Limited (CARE Ratings) had, vide its press release
dated December 27, 2019, placed the rating of SVIPL under the
'issuer non-cooperating' category, as SVIPL had failed to provide
information for monitoring of the rating. SVIPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails dated September 24, 2024; October 04,
2024 and October 14, 2024. In line with the extant Securities and
Exchange Board of India (SEBI) guidelines, CARE Ratings has
reviewed the rating on the basis of the best available information,
which however, in CARE Ratings' opinion is not sufficient to arrive
at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not applicable
Detailed description of key rating drivers:
CARE Ratings has not received any information except the financials
for FY22 (extracted from the Registrar of Companies [RoC]).
Key weaknesses
* Ongoing delays in debt servicing: As per the information received
from the debenture trustee, the company has delayed in debt
servicing of the interest payments.
* Subdued industry scenario: With the on-going economic conditions,
the real estate industry is currently facing issues on many fronts,
including subdued demand, curtailed funding options, rising costs,
restricted supply due to delays in approvals, etc., thereby
resulting in stress on cash flows of developers. The industry has
seen low demand in the recent past, primarily due to factors like
sustained high level of inflation leading to high interest rates
and adverse impact on the buying power and affordability for the
consumers.
Key strengths
* Experienced promoters: SVIPL is a real estate development firm,
incorporated in 2011, and is a part of 'Shree Vardhman group'. The
company was founded by Sandeep Jain and Sachin Jain, who have
experience in the real estate industry. 'Shree Vardhman group' has
been engaged in real estate development and is developing several
projects through different special purpose vehicles (SPVs).
SVIPL is a real estate development firm, incorporated in 2011. It
belongs to 'Shree Vardhman group' and is incorporated for the
residential project 'Victoria' located in Sector-70, Gurgaon,
having total saleable area of 13.42 lakh square feet (lsf), out of
which SVIPL's share is 11.73 lsf. The group has an experience of
execution and successful completion of real estate development
projects, viz., township at Kurukshetra, and group housing project
at Sonepat constituting total saleable area of 13.34 lsf.
=================
I N D O N E S I A
=================
[*] INDONESIA: Aims to Cancel USD550M in Small Businesses' Bad Debt
-------------------------------------------------------------------
Bloomberg News reports that Indonesia may cancel as much as US$550
million of small businesses' bad debt in a bid to boost lending and
growth in South-east Asia's largest economy, according to a top
official.
Bloomberg relates that the government aims to pass a regulation
this month letting state-owned lenders such as Bank Mandiri and
Bank Rakyat Indonesia forgive as much as IDR8.7 trillion of
troubled loans, State-Owned Enterprises Minister Erick Thohir said
in a statement late on Nov. 4. Policymakers are still discussing
what types of loans could be forgiven, which would affect the final
figure, he added.
Indonesia's new government has set the debt cancellation plan as
one of its immediate policy goals as it seeks to drive gross
domestic product growth to 8 per cent, far higher than the average
5 per cent over the last decade, according to Bloomberg. Growth
clocked in at 4.95 per cent in the third-quarter, below economist
estimates and its slowest pace in a year.
Yet millions of small businesses cannot get the loans needed to
grow their enterprise because existing regulations complicate the
process for state lenders to forgive their troubled borrowings,
Bloomberg states. Non-government lenders such as Bank Central Asia
do not have the same problem.
"This policy that lets state lenders cancel debt is something that
we've been waiting for," Bloomberg quotes Bank Rakyat president
director Sunarso as saying. "We haven't dared to do it because some
regulations may categorise that as state losses."
=========
J A P A N
=========
NISSAN MOTOR: Announces Restructuring With 9,000 Job Cuts
---------------------------------------------------------
Bloomberg News reports that Nissan Motor Co. cut its annual profit
outlook and announced plans to eliminate thousands of jobs globally
as it looks to counteract deteriorating sales in major markets.
The Japanese carmaker now sees operating income of JPY150 billion
($975 million) for the fiscal period ending March 2025, down from
from JPY500 billion, Bloomberg discloses. Nissan also said it will
reduce production capacity by 20% and sell 10% of shares it owns in
Mitsubishi Motors Corp., reducing its stake from the current 34%.
Some 9,000 positions will be slashed globally.
According to Bloomberg, Nissan's woes have stood out among Japanese
brands struggling with a downturn in new car sales, along with
heavy competition from Tesla Inc. and Chinese electric vehicle
brands such as BYD Co. The downward revision is a setback for Chief
Executive Officer Makoto Uchida, who sought to improve
profitability despite a gradual decline in sales.
"Meeting our sales goals will be a challenge," Bloomberg quotes Mr.
Uchida as saying. "We need to rebuild our strength so that we can
pivot toward a more positive direction."
Profit for the quarter that ended September was JPY32 billion,
falling short of consensus estimates for JPY65 billion, further
still from the JPY208 billion it saw during the same period last
year, Bloomberg discloses.
Bloomberg notes that the Japanese carmaker is around eight months
into a three-year turnaround plan meant to reinvigorate the
business, but was already backtracking earlier this year. In July,
Nissan slashed its annual operating profit outlook JPY500 billion
from its prior forecast of JPY600 billion due to poor sales in
China, Japan and North America.
"The decline in second quarter profit wasn't a surprise, but the
figure itself was even lower than expected," said Bloomberg
Intelligence analyst Tatsuo Yoshida. "The main problem is the gap
between what the company wanted to achieve, and what was
realistically possible."
Bloomberg relates that Mr. Uchida, who took up his current role in
2019 as the automaker was facing an existential crisis in the wake
of former chairman Carlos Ghosn's departure, is seeking to expand
Nissan's lineup of electric vehicles, forge new partnerships and
sell an additional 1 million cars a year by 2027.
But analysts said the company's new lineup lacks excitement, and
hybrid models - a problem when consumer demand for EVs is waning.
Nissan, like many international legacy automakers, is struggling in
China, the world's biggest car market. In June, it said it would
cease production at a plant in Changzhou amid slumping sales,
Bloomberg recalls.
Earlier this year, Nissan lowered its production goal for the
current fiscal year by 50,000 units to 3.65 million vehicles but
with global sales falling almost 4% to 1.6 million units between
April and September, reaching that could be a challenge.
In March, it agreed with Honda Motor Co. and Mitsubishi Motors
Corp. to work together on the development of in-house software.
This could pit the trio against Toyota Motor Corp. and its alliance
with Subaru Corp., Suzuki Motor Corp. and Mazda Motor Corp.
Mr. Uchida didn't offer further details on the alliance, adds
Bloomberg.
About Nissan Motor
Nissan Motor Co., Ltd. manufactures and distributes automobiles and
related parts. The Company produces luxury cars, sports cars,
commercial vehicles, and more. Nissan Motor markets its products
Worldwide.
As reported in the Troubled Company Reporter-Asia Pacific on March
4, 2024, S&P Global Ratings affirmed its 'BB+' long-term and 'B'
short-term issuer credit ratings on Nissan Motor Co. Ltd. and its
overseas subsidiaries. The outlook on the long-term rating is
stable. S&P affirmed all issue ratings on the companies.
===============
M A L A Y S I A
===============
FASHIONVALET SDN: MACC Freezes Founders' Bank Accounts
------------------------------------------------------
The Edge Malaysia reports that the Malaysian Anti-Corruption
Commission (MACC) has frozen several personal and company bank
accounts, valued at around MYR1.1 million, belonging to the
husband-and-wife founders of the FashionValet e-commerce platform.
According to the report, sources said the freeze is part of an
investigation by the MACC into the couple regarding investment
losses amounting to MYR43.9 million by Khazanah Nasional Bhd
(Khazanah) and Permodalan Nasional Bhd (PNB).
The Edge Malaysia relates that the sources said that on Nov. 4,
MACC simultaneously "raided" FashionValet Sdn Bhd, the Ministry of
Finance (MOF), Khazanah and PNB, obtaining financial documents to
aid the investigation.
"Since the investigation began, the MACC, through 'Op Favish,' has
frozen approximately 11 personal accounts and six company accounts
under the couple's management, amounting to around MYR1.1 million,
to assist in the investigation.
"Additionally, the MACC has recorded statements from several key
individuals, including senior officials from Khazanah, PNB,
FashionValet, accountants, company valuers and introducers," said a
source.
According to the sources, the commission also searched the couple's
residence in Mont Kiara, Kuala Lumpur, on Nov. 6, The Edge Malaysia
relays.
The couple was said to have arrived at the MACC office at around
1:00 p.m. to continue giving their statements, before being taken
to their residence at 5:30 p.m. for the search.
The sources said the search was conducted by 12 MACC officers, in
the presence of the couple's lawyer.
"The search concluded around 8pm, with the seizure of items,
including 11 handbags and a luxury watch, worth an estimated total
of MYR200,000," the source, as cited by The Edge Malaysia, said.
When contacted, MACC chief commissioner Tan Sri Azam Baki confirmed
the account freeze and the search, and said the case is being
investigated under Section 18 of the MACC Act 2009.
Fashion Valet Sdn Bhd operates as an online fashion store. The
Company offers ready-to-wear garments for women, shoes,
accessories, and handbags. Fashion Valet serves customers in
Malaysia.
KHEE SAN: Signs Underwriting Deal for Rights Issue to Exit PN17
---------------------------------------------------------------
NST Online reports that Khee San Bhd (KSB) signs underwriting
agreement with M&A Securities Sdn Bhd, Kenanga Investment Bank Bhd
and Malacca Securities Sdn Bhd for proposed rights issue to
regularise financial condition.
According to NST Online, the candy confectionery manufacturer and
distributor said the proposed rights issue involves the issuance of
up to 960.96 million shares and up to 549.12 million warrants on
the basis of four warrants for every seven rights shares
subscribed.
"With the rights shares priced at 10 sen each, the exercise is
expected to raise between MYR65 million on a minimum subscription
basis and MYR96.1 million under the maximum scenario," it said in a
statement.
NST Online relates that executive chairman Yong Loong Chen said the
underwriting agreement for the company's rights issue is testament
to the stakeholders' confidence in its recovery and growth
potential.
"With seven consecutive quarters of profitable results and clear
expansion plans, KSB is well-positioned to accelerate growth
domestically and internationally, continuing our legacy, which
spans over seven decades as a trusted Malaysian confectionery
brand," said Yong, notes the report.
Khee San aims to raise between MYR65 million on a minimum
subscription basis and MYR96.1 million via the proposed rights
issue, NST Online says.
KSB aims to use the funds to increase production capacity through
new high-speed manufacturing lines, which will support rising
demand and improve operational efficiency.
NST Online adds that the company also intends to expand its reach
in key international markets, including New Zealand, Mauritius and
Taiwan, strengthening its distribution network, while growing its
portfolio to include new innovative products, it added.
M&A Securities is principal advisor for the rights issue.
About Khee San
Khee San Berhad is a Malaysia-based investment holding company. The
Company, through its subsidiaries, manufactures sweets and
confectionery products.
As reported in the Troubled Company Reporter-Asia Pacific on Nov.
24, 2021, Khee San Bhd was classified a Practice Note 17 (PN17)
company after its wholly-owned subsidiary was placed under judicial
management.
In a bourse filing on Nov. 19, Khee San said Maybank Islamic Bhd,
via its solicitor Messrs Shook Lin & Bok, had filed an application
to place its unit Khee San Food Industries Sdn Bhd under the
court-supervised restructuring, theedgemarkets.com said.
=====================
N E W Z E A L A N D
=====================
CNK HOLDINGS: Court to Hear Wind-Up Petition on Nov. 15
-------------------------------------------------------
A petition to wind up the operations of CNK Holdings Limited will
be heard before the High Court at Auckland on Nov. 15, 2024, at
10:45 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Sept. 20, 2024.
The Petitioner's solicitor is:
Cloete Van Der Merwe
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
MAKOZ LIMITED: Court to Hear Wind-Up Petition on Nov. 15
--------------------------------------------------------
A petition to wind up the operations of Makoz Limited will be heard
before the High Court at Gisborne on Nov. 15, 2024, at 9:30 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Aug. 21, 2024.
The Petitioner's solicitor is:
Charles David Walmsley
Inland Revenue, Legal Services
21 Home Straight (PO Box 432)
Hamilton
NIJJAR TAXI: Creditors' Proofs of Debt Due on Jan. 10
-----------------------------------------------------
Creditors of Nijjar Taxi Transport Limited, C2C Childcare Limited,
Z Building and Interiors Limited are required to file their proofs
of debt by Jan. 10, 2025, to be included in the company's dividend
distribution.
Z Building commenced wind-up proceedings on Oct. 30, 2024.
Nijjar Taxi commenced wind-up proceedings on Oct. 31, 2024.
C2C Childcare commenced wind-up proceedings on Nov. 1, 2024.
The company's liquidators are:
Daran Nair
Heiko Draht
Nair Draht Limited
97 Great South Road
Greenlane, Auckland 1051
REMIX FITNESS: Court to Hear Wind-Up Petition on Nov. 15
--------------------------------------------------------
A petition to wind up the operations of Remix Fitness Limited will
be heard before the High Court at Gisborne on Nov. 15, 2024, at
9:30 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Sept. 9, 2024.
The Petitioner's solicitor is:
Charles David Walmsley
Inland Revenue, Legal Services
21 Home Straight (PO Box 432)
Hamilton
TERMINUS 1: Creditors' Proofs of Debt Due on Dec. 10
----------------------------------------------------
Creditors of Terminus 1 Limited (formerly Cassette Cladding
Limited) and Terminus 2 Limited (formerly Kaneba Limited) are
required to file their proofs of debt by Dec. 10, 2024, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on Nov. 1, 2024.
The company's liquidator is:
Kevyn Botes
i-Business Recovery Limited
Auckland, New Zealand
Email: Kevyn@i-insolvency.com
=================
S I N G A P O R E
=================
MD AVIATION: Creditors' Proofs of Debt Due on Dec. 4
----------------------------------------------------
Creditors of MD Aviation Capital Pte. Ltd. and MDAC 6 Pte. Ltd. are
required to file their proofs of debt by Dec. 4, 2024, to be
included in the company's dividend distribution.
The company's liquidators are:
Toh Ai Ling
Chan Kwong Shing, Adrian
Tan Yen Chiaw
c/o 12 Marina View #15-01
Asia Square Tower 2
Singapore 018961
MULTI WATER: Commences Wind-Up Proceedings
------------------------------------------
Members of Multi Water Holdings Ltd on Oct. 23, 2024, passed a
resolution to voluntarily wind up the company's operations.
The company's liquidator is:
Mr. Ng Hoe Kiat Keith
7500A Beach Road
#05-303/304 The Plaza
Singapore 199591
NEW HORIZON: Court to Hear Wind-Up Petition on Nov. 14
------------------------------------------------------
A petition to wind up the operations of New Horizon Global Trading
Pte. Ltd. will be heard before the High Court of Singapore on Nov.
14, 2024, at 10:00 a.m.
Ripple Markets APAC Pte. Ltd. filed the petition against the
company on Sept. 26, 2024.
The Petitioner's solicitors are:
Allen & Gledhill LLP
One Marina Boulevard #28-00
Singapore 018989
ORHSOME PTE: Court Enters Wind-Up Order
---------------------------------------
The High Court of Singapore entered an order on Oct. 25, 2024, to
wind up the operations of Orhsome Pte. Ltd.
DBS Bank Ltd filed the petition against the company.
The company's liquidator is:
Gary Loh Weng Fatt
BDO Advisory Pte Ltd
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
SG BLACKMARKET: Court Enters Wind-Up Order
------------------------------------------
The High Court of Singapore entered an order on Oct. 25, 2024, to
wind up the operations of SG Blackmarket Pte. Ltd.
Maybank Singapore Limited filed the petition against the company on
Sept. 2, 2024.
The company's liquidators are:
BDO Advisory
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
VAN NGUYEN: Court Enters Wind-Up Order
--------------------------------------
The High Court of Singapore entered an order on Oct. 25, 2024, to
wind up the operations of Van Nguyen Pte. Ltd.
DBS Bank Ltd filed the petition against the company on Oct. 2,
2024.
The company's liquidator is:
Gary Loh Weng Fatt
BDO Advisory Pte Ltd
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
=============
V I E T N A M
=============
VIETNAM TECHCOMBANK: S&P Affirms 'BB-' LT ICR, Outlook Stable
-------------------------------------------------------------
S&P Global Ratings affirmed its 'BB-' long-term and 'B' short-term
issuer credit ratings on Vietnam Technological And Commercial Joint
Stock Bank (Techcombank). The outlook on the long-term rating is
stable.
Techcombank will likely maintain a moderate risk-adjusted capital
(RAC) ratio of 5.0%-5.5% over the next 12-18 months. S&P
forecasts the bank's loans will increase by 18%-20% annually during
this period. The bank's net interest margin (NIM) could compress to
4.5%-4.6% as deposit competition drives up cost of funds.
Net credit costs could improve to a long-term mean of 50 basis
points (bps)-60 bps as credit conditions improve. S&P also factored
in a 30% dividend payout ratio in its forecasts. Techcombank had a
RAC ratio of 5.9% in 2023.
Continued profitability that is above the industry average will
support growth. Techcombank's superior profitability will support
above-average loan growth. The bank's ratio of core earnings to
average adjusted assets averaged 3% in the past four years. This
was above the sector average of 1.0%-1.5%. The main drivers were a
high-yielding loan book, a big share of low-cost deposits, and
sizable noninterest income. The bank reported a return on average
assets of 2.6% for the first nine months of 2024.
Techcombank's renewed push into the higher-yielding retail small
and midsize enterprise (SME) segment will also boost yields. This
push is part of the bank's diversification away from the real
estate sector.
Fee income from investment banking and trade finance could rise
over the next 12-18 months as bond markets and trade and export
conditions improve. Investment banking fees rose 111% year on year
in the first nine months of 2024.
Asset quality pressure will ease as economic conditions improve.
S&P expects Techcombank's nonperforming loan (NPL) ratio to improve
gradually to 1.1%-1.3% over the next 12-18 months, from 1.35% in
September 2024. This is as Vietnam's GDP growth picks up. The
domestic real estate sector could recover in 2025 with the
introduction of various land and real estate legislations. This
will benefit the bank, given 58% of its total corporate loan and
bond exposure is to the real estate sector.
Techcombank's real estate loans have so far been resilient during
the current downturn. The sector's NPL ratio was below
Techcombank's headline NPL ratio of 1.35% as of end-September
2024.
Techcombank's ability to attract low-cost deposits will mitigate
any funding volatility and refinancing risk. Techcombank is
gaining market share in Vietnam's fast-growing credit market.
However, the bank's deposits are not growing as fast. The bank
relies more on wholesale sources of funds than other banks. These
include domestic banks, domestic bond markets, syndicated loans,
and borrowings from foreign lenders. It had a ratio of core
deposits to total funding of 75.5% as of end-September 2024, lower
than peers' 80%-90%. Similarly, Techcombank had a slightly higher
ratio of loans to deposits of 108% than peers' 90%-100%.
Techcombank's funding mix may provide benefits such as diversified
funding sources, longer maturity profiles, and lower funding costs.
The mix is beneficial in a banking system where deposits can be
volatile.
That said, the mix may also expose Techcombank to higher funding
volatility and refinancing risks, especially during a global
liquidity crunch.
S&P believes Techcombank will continue to attract diversified,
low-cost deposits through innovative savings products and an
enhanced digital banking experience. This will help the bank
maintain one of the highest ratios of current accounts and savings
accounts in the industry and low funding costs.
Low-cost demand deposits made up 40% of the bank's total deposits
as of end-September 2024, higher than the sector average of about
18%.
S&P said, "We assess Techcombank to have a moderate systemic
importance in Vietnam. Together with a highly supportive
government, this results in a moderately high likelihood of
government support.
"The stable outlook on the long-term rating reflects our view that
Techcombank will maintain its entrenched retail franchise and
above-average profitability over the next 12-18 months.
"For us to lower the ratings, our assessment of Techcombank's
stand-alone credit profile (SACP) would need to decline by at least
two notches. We view this as unlikely over the next 12-18 months."
S&P could lower its assessment of the SACP if Techcombank's
financial profile deteriorates significantly. This could take the
form of:
-- A deteriorating funding ratio, as indicated by the
loan-to-deposit ratio increasing to 130% or more, or a drop in the
proportion of customer deposits to total funding to below 60%; or
-- The RAC ratio declining to below 3% on a sustained basis. This
can happen if the bank ramps up its loans significantly above the
industry average, particularly if it concentrates on lending to the
real estate and construction sectors.
S&P could raise the ratings if Techcombank's RAC ratio improves to
close to 7% on a sustainable basis; and Techcombank maintains sound
asset quality and underwriting standards. This could happen if the
bank moderates its pace of loan growth and diversifies its loan
book further with lesser concentration in the riskier real estate
and construction sectors.
However, S&P views this as unlikely over the next 12-18 months.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2024. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
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*** End of Transmission ***