/raid1/www/Hosts/bankrupt/TCRAP_Public/250116.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
Thursday, January 16, 2025, Vol. 28, No. 12
Headlines
A U S T R A L I A
APPLIED ELECTRO: Second Creditors' Meeting Set for Jan. 22
HOSPOPAY PTY: Second Creditors' Meeting Set for Jan. 22
LIVIN LOCAL: First Creditors' Meeting Set for Jan. 24
PERJ PTY: Second Creditors' Meeting Set for Jan. 23
PINEWOOD FRESH: Second Creditors' Meeting Set for Jan. 21
STAR ENTERTAINMENT: May File for Voluntary Administration
C H I N A
AIXIN LIFE: Xiaowen Zheng Replaces Tianfeng Li as CFO
CHINA FORTUNE: Mulls Switch to Court Supervised Debt Plan
COUNTRY GARDEN: Posts CNY178.4 Billion Net Loss for 2023
RETO ECO-SOLUTIONS: Sells HK-Based REIT Holdings for US$80,000
SINO-OCEAN GROUP: 3-Day Hearing on Restructuring Plan Starts in UK
ZW DATA: Enters Securities Purchase Agreements for $500K Total
I N D I A
AIREN METALS: CARE Keeps D Debt Ratings in Not Cooperating
AKIRA PROPERTIES: Ind-Ra Withdraws B- NonConvertible Debt Rating
ANANDA EXPORTS: CARE Keeps D Debt Ratings in Not Cooperating
ASHASHREE FROZEN: CARE Keeps D Debt Rating in Not Cooperating
DURGA SHAKTI: Ind-Ra Keeps D Loan Rating in Non-Cooperating
ESSEL LUCKNOW: CARE Reaffirms D Rating on INR263.10cr NCDs
GOA SPONGE: Ind-Ra Cuts Term Loan Rating to BB-
GURUDEVA CHARITABLE: Ind-Ra Keeps D Rating in NonCooperating
HI-TECH HYDRAULIC: Ind-Ra Cuts Loan Rating to B
HILAND AGRO: Ind-Ra Cuts Loan Rating to B-
HYGEN PACKS: CARE Keeps B- Debt Rating in Not Cooperating Category
INDIA DAIRY: CARE Lowers Rating on INR15cr LT Loan to B-
INDIGO COLLECTIONS: CARE Keeps D Debt Ratings in Not Cooperating
ISPAT PRIVATE: Ind-Ra Keeps B- Loan Rating in Non-Cooperating
JAGRUTI SUGAR: Ind-Ra Moves BB+ Loan Rating to NonCooperating
K7 COMPUTING: Ind-Ra Cuts Loan Rating to B+
KAIRALI STEELS: Ind-Ra Cuts Loan Rating to BB-
KISSAN SOLVEX: CARE Keeps B- Debt Rating in Not Cooperating
MAA PRABHAWATI: CARE Reaffirms B+ Rating on INR29.78cr LT Loan
MAHENDRAKUMAR JAIN: CARE Keeps C Debt Rating in Not Cooperating
MERCURY CAPITAL: Voluntary Liquidation Process Case Summary
MISHRILAL ASSOCIATES: Ind-Ra Affirms BB- Loan Rating
MONA PORTFOLIO: Insolvency Resolution Process Case Summary
MP BORDER: CARE Keeps D Debt Rating in Not Cooperating Category
MURUGAR SPINNING: Ind-Ra Cuts Loan Rating to BB-
N.N. SAHA: Ind-Ra Cuts Loan Rating to B
NIHA INTERNATIONAL: CARE Keeps D Debt Rating in Not Cooperating
NIPANI INFRA: Ind-Ra Affirms BB+ Bank Loan Rating, Outlook Stable
ONEUP MOTORS: Ind-Ra Keeps D Loan Rating in NonCooperating
ORIENT FROZEN: Insolvency Resolution Process Case Summary
PAITHAN MEGA: CARE Hikes Rating on INR13.40cr LT Loan to B
PATEL PHOSCHEM: CARE Keeps D Debt Rating in Not Cooperating
PLUTO CERAMIC: CARE Keeps D Debt Ratings in Not Cooperating
PRERNA SERVICES: CARE Keeps D Debt Ratings in Not Cooperating
PROVENTUS AGER: CARE Keeps D Debt Rating in Not Cooperating
PUNE SHOLAPUR: CARE Keeps D Debt Rating in Not Cooperating
RUKMINI IRON: Ind-Ra Keeps D Loan Rating in Non-Cooperating
RUPAMATA POWER: Ind-Ra Hikes Bank Loan LongTerm Rating to BB-
RYDAK SYNDICATE: Ind-Ra Cuts Term Loan Rating to BB-
SAHARA HOSPITALITY: CARE Keeps D Debt Ratings in Not Cooperating
SAIFY INTERIORS: CARE Lowers Rating on INR5.50cr ST Loan to D
SEAJULI DEVELOPERS: CARE Keeps D Debt Rating in Not Cooperating
SHUBH ALUMINUM: CARE Keeps C/A4 Debt Ratings in Not Cooperating
SILVER ESTATE: CARE Keeps C Debt Rating in Not Cooperating
SONY AIRCON: CARE Keeps C Debt Rating in Not Cooperating Category
SPARTAN ENGINEERING: Ind-Ra Cuts Loan Rating to D
SREENIDHI RAJA: Ind-Ra Cuts Term Loan Rating to B
STAR SCHOOL: Ind-Ra Keeps D Term Loan Rating in NonCooperating
UEE ELECTRICAL: Insolvency Resolution Process Case Summary
UNDERWATER SERVICES: CARE Cuts Rating on INR49cr LT Loan to D
UNITED STEEL: Insolvency Resolution Process Case Summary
UNIVERSAL EDUCATIONAL: Ind-Ra Keeps C Rating in NonCooperating
UTOPIAN SUGARS: CARE Keeps D Debt Rating in Not Cooperating
VIJAYA HOSPITAL: Ind-Ra Cuts Term Loan Rating to BB-
WISDOM FOUNDATION: CARE Hikes Rating on INR11.63cr LT Loan to B+
J A P A N
NISSAN MOTOR: S&P Alters Outlook to Negative, Affirms 'BB+/B' ICR
[*] JAPAN: Corporate Bankruptcies Exceed 10,000 in 2024
N E W Z E A L A N D
FULCRUM SCAFFOLDING: Creditors' Proofs of Debt Due on Feb. 15
J & P DRAINAGE: Court to Hear Wind-Up Petition on March 14
JNJ INTERNATIONAL: Owe Creditors More Than NZD2.5 Million
RIPE FOOD: Creditors' Proofs of Debt Due on Feb. 15
TAZ DRAINAGE: Court to Hear Wind-Up Petition on March 14
TRAFFIC DIRECT: Creditors' Proofs of Debt Due on Jan. 20
S I N G A P O R E
BOLDTEK HOLDINGS: Creditors' Meeting Set for Jan. 23
EJOINT PTE: Court Enters Wind-Up Order
ELEMENT DYNAMICS: Creditors' Proofs of Debt Due on Feb. 13
FUSING INTERNATIONAL: Creditors' Proofs of Debt Due on Feb. 10
JUBILEE FOODSTUFF: Court to Hear Wind-Up Petition on Jan. 31
VMS ADVANCE: Court to Hear Wind-Up Petition on Jan. 31
T A I W A N
NANYA TECHNOLOGY: Posts 9th Consecutive Quarter of Losses
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A U S T R A L I A
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APPLIED ELECTRO: Second Creditors' Meeting Set for Jan. 22
----------------------------------------------------------
A second meeting of creditors in the proceedings of Applied Electro
Systems Pty. Ltd. has been set for Jan. 22, 2025 at 10:30 a.m. via
Microsoft Teams only.
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 Jan. 21, 2025 at 5:00 p.m.
Glenn Shannon of Hall Chadwick was appointed as administrator of
the company on Dec. 6, 2024.
HOSPOPAY PTY: Second Creditors' Meeting Set for Jan. 22
-------------------------------------------------------
A second meeting of creditors in the proceedings of HospoPay Pty
Limited has been set for Jan. 22, 2025 at 11:00 a.m. via virtual
meeting.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Jan. 21, 2025 at 12:00 p.m.
Luke Pittorino and Quentin Olde of Ankura Consulting were appointed
as administrators of the company on Dec. 6, 2024.
LIVIN LOCAL: First Creditors' Meeting Set for Jan. 24
-----------------------------------------------------
A first meeting of the creditors in the proceedings of Livin Local
Group Pty Ltd will be held on Jan. 24, 2025, at 10:30 a.m. at the
offices of WA Insolvency Solutions, a division of Jirsch Sutherland
at Level 6, Suite 6.02, 109 St Georges Terrace in Perth and via
virtual meeting.
Greg Prout and Jimmy Trpcevski of WA Insolvency Solutions were
appointed as administrators of the company on Jan. 14, 2025.
PERJ PTY: Second Creditors' Meeting Set for Jan. 23
---------------------------------------------------
A second meeting of creditors in the proceedings of PERJ Pty Ltd
and Amdel Mine Maintenance & Machinery Pty Ltd has been set for
Jan. 23, 2025 at 10:30 a.m. and 11:30 a.m. respectively, at the
offices of Worrells at Suite 5A, Level 5, 34 East Street in
Rockhampton City and via virtual meeting technology.
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 Jan. 22, 2025 at 5:00 p.m.
Michael Beck of Worrells was appointed as administrator of the
company on Dec. 11, 2024.
PINEWOOD FRESH: Second Creditors' Meeting Set for Jan. 21
---------------------------------------------------------
A second meeting of creditors in the proceedings of Pinewood Fresh
Pty Ltd has been set for Jan. 21, 2025 at 10:00 a.m. at the offices
of SV Partners at Level 17, 200 Queen Street in Melbourne and by
way of teleconference facilities (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 Jan. 20, 2025 at 5:00 p.m.
Michael Carrafa and Fabian Kane Micheletto of SV Partners were
appointed as administrators of the company on Dec. 13, 2024.
STAR ENTERTAINMENT: May File for Voluntary Administration
---------------------------------------------------------
The Australian Financial Review reports that Star Entertainment's
lenders warn the Sydney and Gold Coast casino owner could be in
voluntary administration within months and its hotels carved up and
sold to the highest bidders, as a lifeline deal to preserve its
future as a listed company fails to materialise.
The Australian Financial Review relates that two sources close to
Star's secured debt providers, speaking on the condition of
anonymity, said it was unlikely to find a white knight investor in
its current form, which would mean it runs out of cash based on how
it is tracking financially. That would leave the board with no
option but to cede control of the company.
"It's easier to do the recapitalisation in voluntary administration
than as a going concern," one of the sources said, referring to
when investors contribute fresh capital to reorient an ailing
business, notes the report. "They're going to run out of money."
It marks a stunning fall from grace for Star, which once had a AUD4
billion market value. It has since raised AUD1.5 billion in new
equity and yet its market capitalisation has dropped to less than
AUD500 million.
There is still the possibility that Australia's casino regulators
and the NSW and Queensland governments identify a scenario where
the group, which employs 9,000 people, participates in a state-led
rescue, the report relays. But no such arrangement has been
proposed.
The report says another source linked to the lenders said: "It is
getting close to the end of the road; there are just too many
hurdles for Star to jump."
Those lenders have offered Star another AUD100 million, likely to
be enough to survive until the end of the year on current cash flow
forecasts, The Australian Financial Review relays. However, the
money is only accessible if Star can raise an additional AUD150
million in subordinated debt, convertible notes or equity, and meet
a handful of other conditions as part of a deal agreed in September
last year.
Star's board said it was considering other "liquidity solutions" on
Wednesday night [Jan. 8], which include asset sales, relates the
report. The company and its bankers have been in talks with
potential investors for months. It has only AUD79 million left in
the bank as of December 31, having burnt through AUD107 million in
the December quarter.
Casino takings and the company's earnings have dropped sharply, hit
by regulatory crackdowns and weaker consumer sentiment, while Star
has also had to tip more money than expected into its new Queens
Wharf casino and hotel in Brisbane, according to the report.
Lenders said it is unlikely to meet covenants tests on its AUD330
million loans in the March and June quarters. The size of an
AUSTRAC fine still remains unknown.
The company recorded an AUD18 million loss at the earnings line in
the three months to September 30, compared to making AUD62 million
one year earlier, the report notes. It's expected to reveal its
December quarter trading in the coming weeks.
According to The Australian Financial Review, the lenders have had
insolvency firm McGrath Nicol try to forecast Star's cash flow and
value its assets, while the board has been taking cashflow advice
from PwC.
McGrath Nicol's reports said lenders should be able to recoup their
loans from the sale of Star's hotel rooms and conceded that the
value of its casino licences was highly uncertain, according to the
sources. Some taxes and employee entitlements may rank above their
AUD330 million in loans, the report said.
"Most of the lenders are pretty comfortable that they would be ok
if VA proceeds," one of the sources said. There are about 10
lenders in the group, including Macquarie and Deutsche Bank.
Mr. McCann has consistently warned shareholders that the casino
operator is in a precarious financial position.
"We have a difficult road ahead and The Star remains in an
extremely challenging position," The Australian Financial Review
quotes Mr. McCann as saying at the annual general meeting on
November 28. Star needed time to earn back regulators' trust while
turning around its worsening operating performance.
Should Star land in voluntary administration, it could spell
painful losses for its shareholders, just like what happened at
Virgin Australia in 2020 and steelmaker Arrium in 2016, The
Australian Financial Review notes.
About The Star Entertainment
The Star Entertainment Group Limited (ASX:SGR) --
https://www.starentertainmentgroup.com.au/ -- is an Australia-based
company that provides gaming, entertainment and hospitality
services. The Company operates The Star Sydney (Sydney), The Star
Gold Coast (Gold Coast) and Treasury Brisbane (Brisbane). The
Company operates through three segments: Sydney, Gold Coast and
Brisbane. Sydney segment consists of The Star Sydney's casino
operations, including hotels, restaurants, bars and other
entertainment facilities. Gold Coast segment consists of The Star
Gold Coast's casino operations, including hotels, theatre,
restaurants, bars and other entertainment facilities. Brisbane
segment includes Treasury's casino operations, including hotel,
restaurants and bars. The Company also manages the Gold Coast
Convention and Exhibition Centre on behalf of the Queensland
Government. The Company also owns Broadbeach Island on which the
Gold Coast casino is located.
The Star Entertainment Group posted three consecutive annual net
losses of AUD198.6 million, AUD2.43 billion and AUD1.68 billion for
the years ended June 30, 2022, 2023, and 2024, respectively.
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C H I N A
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AIXIN LIFE: Xiaowen Zheng Replaces Tianfeng Li as CFO
-----------------------------------------------------
On January 5, 2025, Ms. Tianfeng Li, the Chief Financial Officer of
Aixin Life International, Inc. , tendered her resignation as Chief
Financial Officer of the Company, effective January 5, 2025,
according to a Form 8-K filing with the U.S. Securities and
Exchange Commission.
Ms. Li's resignation was not a result of any disagreement with the
Company on any matter relating to its accounting, operations,
policies or practices.
Effective January 6, 2025, Mr. Xiaowen Zheng, 39 years old, was
appointed by the Board of Directors of the Company to the position
of Chief Financial Officer of the Company. Mr. Zheng will also
serve as Chief Financial Officer of the Company's subsidiaries.
Mr. Xiaowen Zheng is an accomplished financial executive with
extensive experience in accounting, taxation, and financial
management across various industries. Mr. Zheng has served as the
Financial Manager of Chengdu Aixin Zhonghong Biological Technology
Co., Ltd., a subsidiary of the Company, since March 2023.
From January 2022 to February 2023, Mr. Zheng served as the
Financial Director for Sichuan Minghoutian Information Technology
Co., Ltd., an information technology company, where he led the
company's financial operations, including internal management,
accounting, taxation, and securing external financing.
From November 2017 to December 2021, Mr. Zheng held the position of
Financial Manager at Sichuan Huianrong Information Technology Co.,
Ltd., a technology company, overseeing the financial department's
operations and advancing the company's enterprise restructuring
initiatives to prepare the organization for scalability. From May
2009 to November 2017, Mr. Zheng gained his expertise in accounting
and tax compliance through roles as an accountant at Sichuan
Jinguang Chemicals Co., Ltd. and Hutchison (China) Trading Co.,
Ltd., and as an Accounting Supervisor at Sichuan Creativity
Information Technology Co., Ltd., where he specialized in audits,
tax management, and financial analysis, streamlining reporting
processes and ensuring compliance.
Mr. Zheng holds a Bachelor of Science degree in Accounting from
Panzhihua University. He is a Certified Tax Agent, Senior
Management Accountant, and holds certifications in securities, all
accredited by organizations in China.
There are no family relationships between Mr. Zheng and any
director or executive officer of the Company. To the knowledge of
the Company, there is no understanding or arrangement between Mr.
Zheng and any other person pursuant to which he was appointed as
the Company's Chief Financial Officer. Additionally, there have
been no transactions in the past two years to which the Company or
any of its subsidiaries or affiliates was or is to be a party, in
which Mr. Zheng had, or will have, a direct or indirect material
interest, and none are currently proposed that would require
disclosure under Item 404(a) of Regulation S-K.
Mr. Zheng has entered into a labor contract with the Company's
subsidiary, Chengdu Aixin Zhonghong Biological Technology Co.,
Ltd., dated January 6, 2025. The labor contract provides that the
initial term of the contract is from January 6, 2025 to June 30,
2026, subject to certain conditions for termination and certain
exceptions provided under the PRC Labor Contract Law. Mr. Zheng is
entitled to a fixed annual base salary of RMB 180,000
(approximately $24,568) plus bonuses.
About AiXin Life International
Sichuan Province, China-based AiXin Life International, Inc. is a
Colorado holding company and conducts substantially all of its
operations through its operating companies established in the
People's Republic of China, or the PRC. The Company focuses on
providing health and wellness products to the growing middle class
in China. It currently develops, manufactures, markets, and sells
premium-quality healthcare, nutritional products, and wellness
supplements, including herbs and greens, traditional Chinese
remedies, functional products such as weight management products,
probiotics, foods, and drinks. The Company also provides
advertising and marketing services to clients who engage us to
market and distribute their products.
Diamond Bar, California-based KCCW Accountancy Corp., the
Company's
auditor since 2019, issued a "going concern" qualification in its
report dated April 5, 2024, citing that the Company incurred
recurring losses from operations and has an accumulated deficit,
which raises substantial doubt about its ability to continue as a
going concern.
CHINA FORTUNE: Mulls Switch to Court Supervised Debt Plan
---------------------------------------------------------
Bloomberg News reports that a major Chinese builder, which was a
harbinger of the property crisis, may scrap a creditor-approved
debt plan and end up in court to solve its lingering debt problems,
highlighting challenges for distressed developers as the downturn
enters its fifth year.
Bloomberg relates that China Fortune Land Development Co, which
defaulted in early 2021, is considering a new restructuring under
the supervision of a Chinese court that would replace an earlier
debt plan approved by creditors, said people familiar with the
matter.
The move would add a new twist to the builder's years-long
restructuring efforts, which have seen it rely on unorthodox
methods and private transactions to reduce its debt load.
The company, which develops residential properties and industrial
parks, has again engaged China International Capital Corp as its
financial adviser, the people said, asking not to be identified as
the matter is private, Bloomberg relays.
Bloomberg notes that court-supervised restructurings for property
developers in China are rare, despite the slew of defaults by
builders over recent years. One of the few builders to pursue such
a plan is Jinke Properties Group Co, which expects its
liabilities-to-assets ratio to drop from over 90% to around 30%
under its court-supervised restructuring. Jinke's plan could serve
as a road map for China Fortune Land.
Such court-supervised restructurings generally require a procedure
to place the company under bankruptcy administration and may
include white knights to bring in new funds.
"Since China Fortune Land defaulted early, initial restructuring
plans were overly optimistic," Bloomberg quotes Yao Yu, founder of
Shenzhen-based credit research company Ratingdog, as saying. "With
the real estate downturn persisting and short-term recovery
unlikely, significant debt reduction via court-supervised
restructuring is now a pragmatic choice," Yao added.
Under a CNY190 billion debt plan that was approved by creditors,
the company proposed to pay 30% of its onshore bonds' principal in
multiple installments by the end of 2023, Bloomberg says. It didn't
achieve that goal and has compensated its bondholders in a
piecemeal manner so far.
Last year, it privately proposed a plan to some creditors, giving
them an option to transfer their debt to an unnamed state-owned
firm, recalls Bloomberg. It is expected to reduce its borrowings by
around CNY20 billion after the completion of the plan.
The option came several months after it cut its public debt by
about CNY10 billion at a discount of around 10% by teaming up with
a local buyer.
About China Fortune
China Fortune Land Development Co., Ltd. offers real estate
development and investment services. The Company develops
industrial parks and industrial town projects. China Fortune Land
Development also provides related industrial solution services.
As reported in the Troubled Company Reporter-Asia Pacific in March
2021, China Fortune Land Development Co. Ltd. again defaulted on
billions of yuan in debt as it struggled to scrape together enough
cash to meet its commitments amid a tightening regulatory
environment. China Fortune said that it and its subsidiaries have
recently failed to repay CNY8.38 billion ($1.3 billion) in
principal and interest on a mishmash of new debt, including bank
loans, trust loans, bonds and other debt financing tools, according
to a March 10 filing to the Shanghai Stock Exchange.
COUNTRY GARDEN: Posts CNY178.4 Billion Net Loss for 2023
--------------------------------------------------------
Bloomberg News reports that Country Garden Holdings Co. suffered
another record loss in 2023 as the Chinese property giant pledged
to clinch a deal with creditors on a debt restructuring plan by
June.
The embattled real estate firm reported a loss attributable to
shareholders of CNY178.4 billion ($24.3 billion) for the year,
compared with a loss of CNY6 billion in 2022, an exchange filing
showed late on Jan. 14, Bloomberg discloses. Its loss narrowed in
the first half of 2024 to CNY12.8 billion, from CNY48.9 billion in
the same period a year earlier.
Country Garden said it expects to reach an agreement with offshore
creditors on the debt restructuring plan in the first half of 2025,
according to a emailed statement to Bloomberg News. It hopes to
start work on bondholders signing restructuring support agreement
"as soon as possible."
Bloomberg says the delayed results underscore how much Country
Garden, once China's biggest builder by sales, has struggled during
a housing crisis that's rocked Asia's largest economy for more than
three years. Dozens of developers have been hit, with another
fallen giant, China Evergrande Group, already being liquidated in
Hong Kong.
The builder blamed the 2023 loss on a "huge impairment provision"
on properties under development and completed homes held for sale,
according to the statement. Declines in gross margins and price
cuts in asset disposal also contributed, it added.
Market sentiment on Chinese developers has worsened this year. A
Bloomberg Intelligence gauge mainly tracking Hong Kong-traded
Chinese developer stocks dropped as much as 1.4% on Jan. 15, and is
down more than 9% in 2025.
Earlier this month, Country Garden said it proposed debt
restructuring terms with key banks that, if implemented, would
enable it to achieve "significant deleveraging," with a targeted
debt reduction of as much as $11.6 billion. But a key bondholder
group, which holds more than 30% of the company's outstanding
notes, has disagreed with the terms. Country Garden defaulted on
dollar bonds in late 2023.
According to Bloomberg, the company said its full-year loss for
2024 should narrow "substantially" from 2023, but it couldn't
predict when it would be profitable again.
"Falling sales are set to deepen its cash crunch," Bloomberg
Intelligence analysts Kristy Hung and Monica Si wrote in a Jan. 15
note. Its cash buffer as of June was "a fraction of" the 406
billion yuan in trade and other payables," according to the note.
Bloomberg adds that Country Garden said it has taken measures to
ensure operations, including setting up a special working group to
coordinate with the government, according to the statement. It will
also ramp up efforts to mitigate debt risk in the medium and long
term through seeking support from stakeholders to avoid financial
risks.
As of Jan. 9, it has more than 200 property projects included in
the government's "white-list" lending program and obtained
additional financing of CNY1.52 billion.
The results come ahead of a court hearing over a so-called wind-up
petition in Hong Kong on Jan. 20, Bloomberg notes. Creditors tend
to pursue such actions to speed up the debt restructuring process
by expediting talks on a repayment plan. A unit of laminates maker
Kingboard Holdings Ltd. filed the petition in February last year.
Shares of Country Garden remains suspended in Hong Kong. The stock
last traded on March 28 last year, having lost about 97% of its
market value from its peak in 2018.
About Country Garden
Country Garden Holdings Company Limited (HKEX:2007), an investment
holding company, invests, develops, and constructs real estate
properties primarily in Mainland China. The company operates in two
segments, Property Development and Construction. It develops
residential projects, such as townhouses and condominiums; and car
parks and retail shops. The company also develops, operates, and
manages hotels. In addition, it researches and develops robots;
sells electronic hardware and food; and provides interior
decoration, agriculture, landscape design, investment and
management consulting, cultural activity planning, and real estate
consulting services.
As reported in the Troubled Company Reporter-Asia Pacific in late
February 2024, Kingboard Holdings-backed money lender Ever Credit
on Feb. 27, 2024, filed a winding-up petition against Country
Garden to the Hong Kong High Court for non-payment of a US$205
million loan.
The TCR-AP reported in late March 2024 that Country Garden has
hired Kroll to carry out a liquidation analysis. Kroll, the New
York-headquartered financial advisory firm, is expected to conduct
an independent business review of Country Garden before projecting
a recovery rate for the developer's creditors under a liquidation
scenario, according to Reuters.
The developer defaulted on US$11 billion of offshore bonds last
year and is in the process of an offshore debt restructuring.
RETO ECO-SOLUTIONS: Sells HK-Based REIT Holdings for US$80,000
--------------------------------------------------------------
As previously disclosed, on December 30, 2024, ReTo Eco-Solutions,
Inc. entered into a Share Sale Agreement with Zhao Duan Wen,
pursuant to which the Company sold all of its shares in REIT
Holdings (China) Limited, a Hong Kong limited company and a
wholly-owned subsidiary of the Company, to the Buyer for a purchase
price of US$80,000 on December 31, 2024.
The unaudited pro forma condensed combined financial statements of
the Company as of and for the six months ended June 30, 2024 and
the year ended December 31, 2023, and the notes related thereto is
available at:
https://tinyurl.com/54hpvnn9
About ReTo Eco-Solutions
ReTo Eco-Solutions, Inc., through its operating subsidiaries in
China, is engaged in the manufacture and distribution of
eco-friendly construction materials (aggregates, bricks, pavers,
and tiles), made from mining waste (iron tailings), as well as
equipment used for the production of these eco-friendly
construction materials. In addition, the Company provides
consultation, design, project implementation, and construction of
urban ecological protection projects through its operating
subsidiaries in China. The Company also provides parts, engineering
support, consulting, technical advice and service, and other
project-related solutions for its manufacturing equipment and
environmental protection projects.
Irvine, California-based YCM CPA, Inc., the Company's auditor since
2021, issued a "going concern" qualification in its report dated
May 15, 2024, citing that the Company recorded an accumulated
deficit as of Dec. 31, 2023, and the Company currently has a net
working capital deficit, continued net losses, and negative cash
flows from operations. These conditions raise substantial doubt
about the Company's ability to continue as a going concern.
As of June 30, 2024, ReTo Eco-Solutions had $33,671,537 in total
assets, $19,894,564 in total liabilities, and $13,776,973 in total
shareholders' equity.
SINO-OCEAN GROUP: 3-Day Hearing on Restructuring Plan Starts in UK
------------------------------------------------------------------
Bloomberg News reports that a three-day hearing kicked off on Jan.
15 in the UK to decide whether state-backed builder Sino-Ocean
Group Holding Ltd's offshore restructuring plan can proceed.
Bloomberg relates that the case is being closely watched, as a key
bondholder group has been calling on creditors to oppose the plan.
Sino-Ocean Group Holding Limited, formerly Sino-Ocean Land Holdings
Limited, is an investment holding company principally engaged in
property development and property investment in the People's
Republic of China (the PRC). The Company is engaged in property
development in Beijing-Tianjin-Hebei, Northeast, Central and
Southern.
As reported in the Troubled Company Reporter-Asia Pacific on Sept.
19, 2023, Moody's Investors Service has downgraded Sino-Ocean Group
Holding Limited's corporate family rating to Ca from Caa2. At the
same time, Moody's has downgraded to C from Caa3, the backed senior
unsecured ratings on the bonds issued by Sino-Ocean Land Treasure
Finance I Limited, Sino-Ocean Land Treasure Finance II Limited, and
Sino-Ocean Land Treasure IV Limited and guaranteed by Sino-Ocean.
The outlook remains negative.
ZW DATA: Enters Securities Purchase Agreements for $500K Total
--------------------------------------------------------------
ZW Data Action Technologies Inc. disclosed in a Form 8-K Report
filed with the U.S. Securities and Exchange Commission that on
January 2, 2025, it entered into a Securities Purchase Agreement
with Pearl River Partners Limited, a British Virgin Islands company
(BVI company number: 675079), pursuant to which Pearl River agreed
to purchase 119,100 shares of common stock of the Company, par
value $0.001 per share for an aggregate purchase price of
US$250,110, representing a purchase price of US$2.1 per share. The
closing shall take place on the date mutually agreed by the
parties, subject to the closing conditions contained in the
Agreement 1. On the date that the Agreement 1 was signed, Pearl
River also entered into a lock-up agreement with the Company,
whereby Pearl River agreed not to transfer the shares until
six-month anniversary of the date of the Agreement 1.
On January 3, 2025, the Company entered into a Securities Purchase
Agreement with Bezier Investments Limited, a British Virgin Islands
company (BVI company number: 2165068), pursuant to which Bezier
agreed to purchase 119,100 shares of common stock of the Company,
par value $0.001 per share for an aggregate purchase price of
US$250,110, representing a purchase price of US$2.1 per share. The
closing shall take place on the date mutually agreed by the
parties, subject to the closing conditions contained in the
Agreement 2. On the date that the Agreement 2 was signed, Bezier
also entered into a lock-up agreement with the Company, whereby
Bezier agreed not to transfer the shares until six-month
anniversary of the date of the Agreement 2.
About ZW Data Action Technologies
Beijing, China-based ZW Data Action Technologies Inc., established
in 2003, is an ecological enterprise that provides digital services
to sales and marketing channels through blockchain, big data, and
precision marketing. ZW Data Action is committed to empowering SMEs
to achieve more efficient and accurate operations and management,
resulting in additional value for clients.
Hong Kong, China-based ARK Pro CPA & Co, the Company's auditor
since 2023, issued a "going concern" qualification in its report
dated June 28, 2024, citing that the Company has an accumulated
deficit from recurring net losses and significant net operating
cash outflow for the year ended December 31, 2023. All these
factors raise substantial doubt about its ability to continue as a
going concern.
As of June 30, 2024, ZW Data Action Technologies had $10.8 million
in total assets, $5.6 million in total liabilities, and $5.3
million in total stockholders' equity.
=========
I N D I A
=========
AIREN METALS: CARE Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Airen
Metals Private Limited (AMPL) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 28.86 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 274.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated December 20,
2023, placed the rating(s) of AMPL under the 'issuer
non-cooperating' category as AMPL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
AMPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated November 4, 2024,
November 14, 2024 and November 24, 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 1995 by Mr Sudhir Agarwal at Jaipur, Rajasthan,
AMPL commenced commercial operations in 1998. AMPL is engaged in
the business of manufacturing paper-insulated strips, over-head
contact wires/conductors, bus bars, sheets and tubes from
non-ferrous metals, mainly copper and aluminium. AMPL has its
manufacturing facility situated at Jaipur and Reengus, Rajasthan.
Status of non-cooperation with previous CRA: Brickwork has
continued the rating assigned to the bank facilities of AMPL into
Issuer Not Cooperating category vide press release dated August 26,
2024 on account of its inability to carry out a review in the
absence of requisite information.
AKIRA PROPERTIES: Ind-Ra Withdraws B- NonConvertible Debt Rating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Akira Properties
Private Limited's (APPL) non-convertible debenture ratings as
follows:
-- The 'IND B-/Negative (ISSUER NOT COOPERATING)' rating on the
INR2.0 bil. Non-convertible debentures* is withdrawn.
*Details in Annexure
Detailed Rationale of the Rating Action
Ind-Ra is no longer required to maintain the rating, as the agency
has received a no dues certificate from the debenture trustee and a
withdrawal request from the issuer. This is consistent with
Ind-Ra's Policy on Withdrawal of Ratings. Ind-Ra will no longer
provide analytical and rating coverage for the company.
About the Company
Incorporated in FY19, Akira, a special purpose vehicle, is an
investment holding company of the promoter group.
ANANDA EXPORTS: CARE Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Ananda
Exports (AE) continue to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ 7.00 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
Rationale and Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated January 9,
2024, placed the rating(s) of AE under the 'issuer non-cooperating'
category as AE had failed to provide information for monitoring of
the rating as agreed to in its Rating Agreement. AE continues to be
non-cooperative despite repeated requests for submission of
information through e-mails dated November 24, 2024, December 4,
2024 and December 14, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
Delhi based, Ananda Exports was established in 2010 as a
partnership firm with the purpose of trading of human hair. The
firm is managed by Mr. Suresh Kumar Nangia and his son Mr. Gaurav
Nangia. Mr. Suresh Kumar Nangia has 48 years of experience in the
trading industry. The firm exports to Tunisia, Italy, China, Honk
Kong, etc. The firm procures the traded products from
the South India and West Bengal from local traders.
Status of non-cooperation with previous CRA: India Ratings has
continued the ratings assigned to the bank facilities of AE into
'Issuer not-cooperating' category vide press release dated December
13, 2024 on account of non-availability of requisite information
from the company.
ASHASHREE FROZEN: CARE Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Ashashree
Frozen foods Private Limited (AFFPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.70 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 December 8,
2023, placed the rating(s) of AFFPL under the 'issuer
non-cooperating' category as AFFPL had failed to provide
information for monitoring of the rating as agreed to in its Rating
Agreement. AFFPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails dated
October 23, 2024, November 2, 2024, November 12, 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 December 2014, Ashashree Frozen Foods Private
Limited (AFFPL) was promoted by Shri Srikanta Kumar Khuntia and
Smt. Anupama Khuntia for setting up a dairy processing plant in
Odisha. AFFPL has already set up the dairy processing unit at
Hatibari, Sambalpur with a processing capacity of 45,000 litre of
milk per day. The commercial operation of the unit has started from
January 14, 2018. AFFPL procures from locally and sells its milk
products through distributors. The company has not availed
moratorium from its lender that could be availed as per RBI
circular.
DURGA SHAKTI: Ind-Ra Keeps D Loan Rating in Non-Cooperating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Durga Shakti
Foods Private Limited's instrument(s) rating in the non-cooperating
category. The issuer did not participate in the surveillance
exercise, despite continuous requests and follow-ups by the agency
through emails and phone calls. Therefore, investors and other
users are advised to take appropriate caution while using the
rating. The rating will continue to appear as 'IND D (ISSUER NOT
COOPERATING)' on the agency's website.
The detailed rating actions are:
-- INR119 mil. Fund Based Working Capital Limit maintained in
non-cooperating category with IND D (ISSUER NOT COOPERATING)
rating; and
-- INR5 mil. Non-Fund Based Working Capital Limit maintained in
non-cooperating category with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with Durga Shakti Foods Private
Limited while reviewing the rating. Ind-Ra had consistently
followed up with Durga Shakti Foods Private Limited over emails,
apart from phone calls.
Limitations regarding Information Availability
Ind-Ra has reviewed the credit ratings of Durga Shakti Foods
Private Limited on the basis of best available information and is
unable to provide a forward-looking credit view. Hence, the current
outstanding rating might not reflect Durga Shakti Foods Private
Limited's credit strength. If an issuer does not provide timely
business and financial updates to the agency, it indicates weak
governance, particularly in 'Transparency of Financial
Information'. The agency may also consider this as symptomatic of a
possible disruption/distress in the issuer's credit profile.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings.
About the Company
Incorporated in 2008, DSFPL is engaged in the processing of
soyabean for extracting soyabean oil and soya de-oiled cake. The
processing facility is located in Khamgaon and Nagpur in
Maharashtra.
ESSEL LUCKNOW: CARE Reaffirms D Rating on INR263.10cr NCDs
----------------------------------------------------------
CARE Ratings has reaffirmed ratings on certain bank facilities of
Essel Lucknow Raebareli Toll Roads Limited (ELTRL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non-convertible 263.10 CARE D Reaffirmed
debentures
Rationale and key rating drivers
Reaffirmation of the rating assigned to long-term non-convertible
debentures (NCDs) of ELTRL reflects the default status due to
non-payment of INR26.70 crore redemption (ISIN no. 'INE465N07181'),
which was due on September 30, 2024. The continuation of the
default status is due to the company's poor liquidity position.
CARE Ratings Limited (CARE Ratings) acknowledges while ELTRL has
serviced the interest obligation on the outstanding NCDs, the
redemption remains unpaid. Despite having debt service reserve
account (DSRA) balance of INR41.47 crore as on October 31, 2024,
which partially covers ensuing six months interest and one
half-yearly principal payment, the DSRA balance was not utilised.
Rating takes cognisance that Agra Gwalior Pathways Private Limited
(AGPPL) holds 73.24% outstanding NCDs as on November 30, 2024, and
controls ELTRL's operations. The company has certain project
maintenance commitments with the National Highways Authority of
India (NHAI; rated 'CARE AAA; Stable'). However, ELTRL has
underperformed in maintaining the project stretch according to
NHAI's road quality standards, leading to significant delays and
multiple instances of annuity deductions by the concessioning
authority. The absence of funded maintenance reserves further
exacerbates the company's ability to finance ongoing maintenance
activities. Additionally, cash flows remain strained due to the
ongoing funding requirements to cover the significantly
higher-than-expected major maintenance expenses.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Improvement in liquidity position along with regularisation of
debt servicing for continuous period of at least 90 days
* Timely receipt of annuities without any deduction and completion
of major maintenance activity in satisfaction to NHAI.
Negative factors:
Not applicable
Analytical approach: Standalone
Outlook: Not applicable
Detailed description of key rating drivers:
Key weaknesses
* Ongoing delays in debt servicing: ELTRL continues to be in
default due to the non-payment of INR26.70 crore redemption (ISIN
no. 'INE465N07181'), which was due on September 30, 2024. ELTRL has
serviced the interest obligation on outstanding NCDs, while the
principal redemption remains unpaid. The continuation of the
default status is due to the company's poor liquidity position.
Despite having DSRA balance of INR41.47 crore as on October 31,
2024, which partially covers ensuing six months interest and one
half-yearly principal payment, the DSRA balance was not utilised.
The strain in liquidity is primarily due to underperformance in
maintaining the project stretch according to NHAI's road quality
standards, leading to significant delays and multiple instances of
deductions form the annuities. Absence of funded maintenance
reserves further exacerbates the company's ability to finance the
ongoing maintenance activities.
Key strengths
* Low credit risk associated with the annuity provider:
Incorporated by the Government of India (GoI) under act of the
Parliament as a statutory body, NHAI functions as the nodal agency
for development, maintenance and management of national highways in
the country. NHAI's credit rating factors in high level of support
received by NHAI from GoI due to its strategic importance for
implementing road sector projects including phases of NHDP. Being a
quasi-government body, the risk arising from NHAI defaulting on the
annuity payments is minimal.
Liquidity: Poor
Poor liquidity is marked by stretched cashflows to cover the
requirement of project maintenance and debt servicing. The company
reportedly had free cash balance of INR 38.19 crore and partial
DSRA balance of INR 41.47 crore as on October 31, 2024.
Incorporated on December 29, 2011, ELRTRL is an SPV promoted by
Essel Infraprojects Limited (EIL; rated 'CARE D; Issuer not
cooperating') for 'Four laning of Lucknow-Raebareli section from km
12.700 to km 82.700 (70 km length) of NH-24B in Uttar Pradesh under
NHDP Phase IVA on design, built, finance, operate and transfer
(DBFOT)-Annuity Basis' per the tender awarded by NHAI, (rated 'CARE
AAA; Stable'). Per the CA, concession period of the project is 17
years (including construction period of 912 days). The SPV attained
provisional commissioning certificate on January 16, 2015, and
final commercial operation date (COD) on April 14, 2015.
GOA SPONGE: Ind-Ra Cuts Term Loan Rating to BB-
-----------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Goa Sponge And
Power Limited rating to IND BB-/Negative (ISSUER NOT COOPERATING).
The issuer did not participate in the surveillance exercise,
despite continuous requests and follow-ups by the agency through
emails and phone calls. Thus, the rating is based on the best
available information. Therefore, investors and other users are
advised to take appropriate caution while using the rating.
The detailed rating actions are:
-- INR610 mil. Fund Based Working Capital Limit downgraded with
IND BB-/Negative (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT
COOPERATING) rating;
-- INR25 mil. Non-Fund Based Working Capital Limit maintained in
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating; and
-- INR165 mil. Term loan due on November 30, 2027 downgraded with
IND BB-/Negative (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Detailed Rationale of the Rating Action
The downgrade is in accordance with Ind-Ra's policy of Guidelines
on What Constitutes Non-Cooperation. As per the policy, ratings of
non-cooperative ratings issuers may get downgraded during
subsequent reviews, if the issuer continues to remain
non-cooperative. With passage of time and absence of updated
information, the risk of sustaining the rating at current levels by
relying on dated information increases, which may be reflected
through a downgrade rating action
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with Goa Sponge And Power Limited
while reviewing the rating. Ind-Ra had consistently followed up
with Goa Sponge And Power Limited over emails, apart from phone
calls.
Limitations regarding Information Availability
Ind-Ra has reviewed the credit ratings of Goa Sponge And Power
Limited on the basis of best available information and is unable to
provide a forward-looking credit view. Hence, the current
outstanding rating might not reflect Goa Sponge And Power Limited's
credit strength. If an issuer does not provide timely business and
financial updates to the agency, it indicates weak governance,
particularly in 'Transparency of Financial Information'. The agency
may also consider this as symptomatic of a possible
disruption/distress in the issuer's credit profile. Therefore,
investors and other users are advised to take appropriate caution
while using these ratings.
About the Company
Incorporated in 1995, GSPL manufactures sponge iron and MS billets.
It has an integrated steel plant, which includes a sponge iron
unit, a captive power plant unit and a furnace plant. The current
capacity of the sponge iron plant is 90,000MT per annum and that of
MS billet plant is 300MT per day.
GURUDEVA CHARITABLE: Ind-Ra Keeps D Rating in NonCooperating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Sree Gurudeva
Charitable And Educational Trust's instrument(s) rating in the
non-cooperating category. The issuer did not participate in the
surveillance exercise, despite continuous requests and follow-ups
by the agency through emails and phone calls. Therefore, investors
and other users are advised to take appropriate caution while using
the rating. The rating will continue to appear as 'IND D (ISSUER
NOT COOPERATING)' on the agency's website.
The detailed rating actions are:
-- INR161.24 mil. Bank Loan maintained in non-cooperating
category with IND D (ISSUER NOT COOPERATING) rating; and
-- INR70 mil. Fund Based Working Capital Limit maintained in non-
cooperating category with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
The ratings are maintained in the non-cooperating category in
accordance with Ind-Ra's policy of Issuer Non-Cooperation.
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with Sree Gurudeva Charitable And
Educational Trust while reviewing the rating. Ind-Ra had
consistently followed up with Sree Gurudeva Charitable And
Educational Trust over emails, apart from phone calls.
Ind-Ra has reviewed the credit ratings of Sree Gurudeva Charitable
And Educational Trust on the basis of best available information
and is unable to provide a forward-looking credit view. Hence, the
current outstanding rating might not reflect Sree Gurudeva
Charitable And Educational Trust's credit strength. If an issuer
does not provide timely business and financial updates to the
agency, it indicates weak governance, particularly in 'Transparency
of Financial Information'. The agency may also consider this as
symptomatic of a possible disruption / distress in the issuer's
credit profile. Therefore, investors and other users are advised to
take appropriate caution while using these ratings.
About the Company
Sree Gurudeva Charitable and Educational Trust was established in
2008 in Pallickal, Kerala. The trust has been managing Sri
Vellappally Natesan College of Engineering since 2008 and offers
B.Tech and M.Tech courses. Tushar Vellapally is the chairman of the
trust.
HI-TECH HYDRAULIC: Ind-Ra Cuts Loan Rating to B
-----------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Hi-Tech
Hydraulic Engineers rating to IND B/Negative (ISSUER NOT
COOPERATING). The issuer did not participate in the surveillance
exercise, despite continuous requests and follow-ups by the agency
through emails and phone calls. Thus, the rating is based on the
best available information. Therefore, investors and other users
are advised to take appropriate caution while using the rating.
The detailed rating actions are:
-- INR60 mil. Fund-based Limit downgraded with IND B/Negative
(ISSUER NOT COOPERATING) rating;
-- INR30 mil. Non-Fund based Limit downgraded with IND A4 (ISSUER
NOT COOPERATING) rating; and
-- INR14.23 mil. Term loan due on March 31, 2024 downgraded with
IND B/Negative (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Detailed Rationale of the Rating Action
The downgrade is in accordance with Ind-Ra's policy of Guidelines
on What Constitutes Non-Cooperation. As per the policy, ratings of
non-cooperative ratings issuers may get downgraded during
subsequent reviews, if the issuer continues to remain
non-cooperative. With passage of time and absence of updated
information, the risk of sustaining the rating at current levels by
relying on dated information increases, which may be reflected
through a downgrade rating action.
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with Hi-Tech Hydraulic Engineers
while reviewing the rating. Ind-Ra had consistently followed up
with Hi-Tech Hydraulic Engineers over emails, apart from phone
calls.
Limitations regarding Information Availability
Ind-Ra has reviewed the credit ratings of Hi-Tech Hydraulic
Engineers on the basis of best available information and is unable
to provide a forward-looking credit view. Hence, the current
outstanding rating might not reflect Hi-Tech Hydraulic Engineers'
credit strength. If an issuer does not provide timely business and
financial updates to the agency, it indicates weak governance,
particularly in 'Transparency of Financial Information'. The agency
may also consider this as symptomatic of a possible
disruption/distress in the issuer's credit profile. Therefore,
investors and other users are advised to take appropriate caution
while using these ratings.
About the Company
Founded in 2005, HTHE manufactures conveyer belt components such as
idler roller, pulleys and heavy material handling systems. The
company's plant is located at Hyderabad and has a total annual
manufacturing capacity of rollers of 250,000 and pulleys of 2,400.
Roshi Reddy is the promoter.
HILAND AGRO: Ind-Ra Cuts Loan Rating to B-
------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Hiland Agro
Products Private Limited rating to IND B-/Negative (ISSUER NOT
COOPERATING). The issuer did not participate in the surveillance
exercise, despite continuous requests and follow-ups by the agency
through emails and phone calls. Thus, the rating is based on the
best available information. Therefore, investors and other users
are advised to take appropriate caution while using the rating.
The detailed rating actions are:
-- INR10 mil. Fund Based Working Capital Limit downgraded with
IND B-/Negative (ISSUER NOT COOPERATING)/IND A4 (ISSUER NOT
COOPERATING) rating; and
-- INR52.3 mil. Term loan due on May 31, 2022 downgraded with IND
B-/Negative (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Detailed Rationale of the Rating Action
The downgrade is in accordance with Ind-Ra's policy of Guidelines
on What Constitutes Non-Cooperation. As per the policy, ratings of
non-cooperative ratings issuers may get downgraded during
subsequent reviews, if the issuer continues to remain
non-cooperative. With passage of time and absence of updated
information, the risk of sustaining the rating at current levels by
relying on dated information increases, which may be reflected
through a downgrade rating action
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with Hiland Agro Products Private
Limited while reviewing the rating. Ind-Ra had consistently
followed up with Hiland Agro Products Private Limited over emails,
apart from phone calls.
Limitations regarding Information Availability
Ind-Ra has reviewed the credit ratings of Hiland Agro Products
Private Limited on the basis of best available information and is
unable to provide a forward-looking credit view. Hence, the current
outstanding rating might not reflect Hiland Agro Products Private
Limited's credit strength. If an issuer does not provide timely
business and financial updates to the agency, it indicates weak
governance, particularly in 'Transparency of Financial
Information'. The agency may also consider this as symptomatic of a
possible disruption/distress in the issuer's credit profile.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings.
About the Company
Hiland Agro Products, a Coimbatore-based company was incorporated
in May 2017 and commenced operations in July 2018. The company
produces high-quality feed for the cattle and poultry sectors. Its
installed capacity is 5,000 mt per month. Thangavel Ramesh,
Annapooranai and Baluswamy Vanieswari are the promoters of the
company.
HYGEN PACKS: CARE Keeps B- Debt Rating in Not Cooperating Category
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Hygen Packs
(HP) continues to remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.19 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 January 2,
2024, placed the rating(s) of HP under the 'issuer non-cooperating'
category as HP had failed to provide information for monitoring of
the rating as agreed to in its Rating Agreement. HP continues to be
non-cooperative despite repeated requests for submission of
information through e-mails dated November 17, 2024, November 27,
2024 and December 7, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Stable
Hygen Packs (HP) was established in September 2014 as a partnership
firm and is currently being managed by Mr. Naval Singla, Mr. Sumeet
Gupta, Mr. Navneet Gupta and Ms. Namrata Gupta sharing profit and
loss equally. The commercial operations of the firm commenced in
May 2015. HPS is engaged in processing of fruit juices at its
manufacturing facility in Faridkot, Punjab.
INDIA DAIRY: CARE Lowers Rating on INR15cr LT Loan to B-
--------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
India Dairy Feeds Private Limited (IDFPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Downgraded from CARE B; Stable
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated October 25,
2023, placed the rating(s) of IDFPL under the 'issuer
non-cooperating' category as IDFPL had failed to provide
information for monitoring of the rating as agreed to in its Rating
Agreement. IDFPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails dated
September 9, 2024, September 19, 2024 and September 29, 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).
The ratings for IDFPL have been revised on account of
non-availability of requisite information.
Analytical approach: Standalone
Outlook: Stable
India Dairy Feeds Private Limited (IDFPL), incorporated in the year
2014 was promoted by Shri Anirban Nath, Smt. Susmita Nath and Shri
Surajit Chakravarti of Kolkata. IDFPL set up a unit engaged in
manufacturing of cattle feed at Bankura, West Bengal with installed
capacity of 30000 MTPA. IDFPL has entered into authorized agreement
with Kaira District Cooperative Milk
Producers' Union Ltd, referred as Amul Dairy in August, 2016 for a
period of 5 years, whereby Amul Dairy will obtain cattle feed of
different types produced by IDFPL, packed in HDPE bags or in
different pack sizes as decided by Amul Dairy, with the objective
of marketing the cattle feed under 'Amul' brand in Kolkata and
other markets in the eastern region as decided by Amul dairy. Shri
Anirban Nath, the Managing Director, looks after the day to day
operations of the entity along with a team of experienced
personnel.
INDIGO COLLECTIONS: CARE Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Indigo
Collections Private Limited (ICPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 4.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 5.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated January 11,
2024, placed the rating(s) of ICPL under the 'issuer
non-cooperating' category as ICPL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
ICPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated November 26, 2024,
December 6, 2024 and December 16, 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
Delhi based, Indigo Collections Private Limited (ICPL) was
incorporated on February 2, 2005; however, started its commercial
operations in April, 2008. ICPL is currently being managed by Mrs.
Upma Chandra, Mr. Manish K. Kochar, Mr. Ravinder Singh and Mrs.
Seema Ghai with the help of qualified management. The company is a
manufacturer and exporter of readymade garments for ladies and
children such as tops, blouses, pants, shirts etc. The
manufacturing facility is located in Gurgaon, Haryana.
Status of non-cooperation with previous CRA: Acuite has continued
the rating assigned to the bank facilities of ICPL under Issuer Not
Cooperating category vide press release dated March 29, 2024 on
account of its inability to carry out a review in the absence of
the requisite information from the company.
CRISIL has continued the rating assigned to the bank facilities of
ICPL under Issuer Not Cooperating category vide press release dated
April 15, 2024 on account of its inability to carry out a review in
the absence of the requisite information from the company.
ISPAT PRIVATE: Ind-Ra Keeps B- Loan Rating in Non-Cooperating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Mahakali Ispat
Private Limited's instrument(s) rating in the non-cooperating
category. The issuer did not participate in the surveillance
exercise, despite continuous requests and follow-ups by the agency
through emails and phone calls. Therefore, investors and other
users are advised to take appropriate caution while using the
rating. The rating will continue to appear as 'IND B-/Negative
(ISSUER NOT COOPERATING)' on the agency's website.
The detailed rating actions are:
-- INR56.50 mil. Fund Based Working Capital Limit maintained in
non-cooperating category with IND B-/Negative (ISSUER NOT
COOPERATING) rating;
-- INR45 mil. Fund Based Working Capital Limit downgraded with
IND B-/Negative (ISSUER NOT COOPERATING) rating; and
-- INR11.5 mil. Non-Fund Based Working Capital Limit maintained
in non-cooperating category with IND A4 (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with Mahakali Ispat Private
Limited while reviewing the rating. Ind-Ra had consistently
followed up with Mahakali Ispat Private Limited over emails, apart
from phone calls.
Limitations regarding Information Availability
Ind-Ra has reviewed the credit ratings of Mahakali Ispat Private
Limited on the basis of best available information and is unable to
provide a forward-looking credit view. Hence, the current
outstanding rating might not reflect Mahakali Ispat Private
Limited's credit strength. If an issuer does not provide timely
business and financial updates to the agency, it indicates weak
governance, particularly in 'Transparency of Financial
Information'. The agency may also consider this as symptomatic of a
possible disruption/distress in the issuer's credit profile.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings.
About the Company
Incorporated in 2003, Mahakali Ispat manufactures sponge iron. It
has an installed capacity of 24,000 million tons per annum.
JAGRUTI SUGAR: Ind-Ra Moves BB+ Loan Rating to NonCooperating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has revised the Outlook on
Jagruti Sugar & Allied Industries Limited's (JSAIL) bank facilities
to Negative from Positive and has simultaneously migrated the
ratings to the non-cooperating category. The issuer did not
participate in the rating exercise despite continuous requests and
follow-ups by the agency through phone calls and emails. Thus, the
rating is based on the best available information. Therefore,
investors and other users are advised to take appropriate caution
while using these ratings. The ratings will now appear as 'IND
BB+/Negative (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating action is:
-- INR750 mil. Fund-based working capital limit Outlook revised
to Negative; migrated to non-cooperating category with IND
BB+/Negative (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT
COOPERATING) rating.
Detailed Rationale of the Rating Action
The migration of rating to the non-cooperating category and Outlook
revision to Negative are in accordance with Ind-Ra's policy,
Guidelines on What Constitutes Non-Cooperation. The Negative
Outlook reflects the likelihood of a downgrade of the entity's
ratings on continued non-cooperation.
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interactions with JSAIL while reviewing the
ratings. Ind-Ra had consistently followed up with JSAIL over
emails, apart from phone calls. The issuer has submitted no default
statement until November 2024.
Limitations regarding Information Availability
Ind-Ra is unable to provide an updated forward-looking view on the
credit rating of JSAIL, as the agency does not have adequate
information to review the ratings. If an issuer does not provide
timely business and financial updates to the agency, it indicates
weak governance, particularly in 'Transparency of Financial
Information'. The agency may also consider this as symptomatic of a
possible disruption/distress in the issuer's credit profile.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. JSAIL has been
non-cooperative with the agency since November 2024.
About the Company
Incorporated in 2009, Latur-based JSAIL manufactures sugar,
molasses, ethanol and co-generation of power. The company is
promoted by Diliprao Deshmukh and Laxman More. JSAIL is a closely
held company, and its entire shareholding is held by the promoters.
The day-to-day operations of the company are handled by Diliprao
Deshmukh and Laxman More, the joint managing directors of the
company.
K7 COMPUTING: Ind-Ra Cuts Loan Rating to B+
-------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded K7 COMPUTING
PRIVATE LIMITED rating to IND B+/Negative (ISSUER NOT COOPERATING).
The issuer did not participate in the surveillance exercise,
despite continuous requests and follow-ups by the agency through
emails and phone calls. Thus, the rating is based on the best
available information. Therefore, investors and other users are
advised to take appropriate caution while using the rating.
The detailed rating action is:
-- INR180 mil. Fund Based Working Capital Limit downgraded with
IND B+/Negative (ISSUER NOT COOPERATING)/IND A4 (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Detailed Rationale of the Rating Action
The downgrade is in accordance with Ind-Ra's policy of Guidelines
on What Constitutes Non-Cooperation. As per the policy, ratings of
non-cooperative ratings issuers may get downgraded during
subsequent reviews, if the issuer continues to remain
non-cooperative. With passage of time and absence of updated
information, the risk of sustaining the rating at current levels by
relying on dated information increases, which may be reflected
through a downgrade rating action
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with K7 COMPUTING PRIVATE LIMITED
while reviewing the rating. Ind-Ra had consistently followed up
with K7 COMPUTING PRIVATE LIMITED over emails, apart from phone
calls.
Limitations regarding Information Availability
Ind-Ra has reviewed the credit ratings of K7 COMPUTING PRIVATE
LIMITED on the basis of best available information and is unable to
provide a forward-looking credit view. Hence, the current
outstanding rating might not reflect K7 COMPUTING PRIVATE LIMITED's
credit strength. If an issuer does not provide timely business and
financial updates to the agency, it indicates weak governance,
particularly in 'Transparency of Financial Information'. The agency
may also consider this as symptomatic of a possible
disruption/distress in the issuer's credit profile. Therefore,
investors and other users are advised to take appropriate caution
while using these ratings.
About the Company
Incorporated in 1998, KCPL develops antivirus software and cyber
security products.
KAIRALI STEELS: Ind-Ra Cuts Loan Rating to BB-
----------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Kairali Steels
and Alloys Private Limited rating to IND BB-/Negative (ISSUER NOT
COOPERATING). The issuer did not participate in the surveillance
exercise, despite continuous requests and follow-ups by the agency
through emails and phone calls. Thus, the rating is based on the
best available information. Therefore, investors and other users
are advised to take appropriate caution while using the rating.
The detailed rating actions are:
-- INR103 mil. Fund Based Working Capital Limit downgraded with
IND BB-/Negative (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT
COOPERATING) rating;
-- INR350 mil. Non-Fund Based Working Capital Limit maintained in
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating; and
-- INR20.8 mil. Proposed fund-based working capital limits
downgraded with IND BB-/Negative (ISSUER NOT COOPERATING)/IND
A4+ (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Detailed Rationale of the Rating Action
The downgrade is in accordance with Ind-Ra's policy of Guidelines
on What Constitutes Non-Cooperation. As per the policy, ratings of
non-cooperative ratings issuers may get downgraded during
subsequent reviews, if the issuer continues to remain
non-cooperative. With passage of time and absence of updated
information, the risk of sustaining the rating at current levels by
relying on dated information increases, which may be reflected
through a downgrade rating action.
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with Kairali Steels and Alloys
Private Limited while reviewing the rating. Ind-Ra had consistently
followed up with Kairali Steels and Alloys Private Limited over
emails, apart from phone calls.
Limitations regarding Information Availability
Ind-Ra has reviewed the credit ratings of Kairali Steels and Alloys
Private Limited on the basis of best available information and is
unable to provide a forward-looking credit view. Hence, the current
outstanding rating might not reflect Kairali Steels and Alloys
Private Limited's credit strength. If an issuer does not provide
timely business and financial updates to the agency, it indicates
weak governance, particularly in 'Transparency of Financial
Information'. The agency may also consider this as symptomatic of a
possible disruption/distress in the issuer's credit profile.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings.
About the Company
Kairali Steels and Alloys, incorporated in 1995 in Kozhikode,
Kerala, manufactures thermo mechanical treatment (TMT) bars with a
roll milling capacity of 1,20,000 MT per annum. The entity has its
own brand named Kairali TMT. It has an existing network of more
than 300 dealers in Kerala. The company is promoted by Kalliyath
Abdul Khadar, the founder of Kalliyath group which has been in the
steel business in Kerala since 1927.
KISSAN SOLVEX: CARE Keeps B- Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Kissan
Solvex Private Limited (KSPL) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 14.00 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 January 2,
2024, placed the rating(s) of KSPL under the 'issuer
non-cooperating' category as KSPL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
KSPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated November 17, 2024,
November 27, 2024 and December 7, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of KSPL have been
revised on account of non-availability of requisite information.
Analytical approach: Standalone
Outlook: Stable
Kissan Solvex Private Limited (KSPL) was incorporated as a private
limited company in February 1988 and is currently being managed by
Mr. Inderjit Singh and Mr. Kirandeep Singh. The company is engaged
in the extraction of rice bran oil at its processing facility
located in Jalalabad, Punjab. The company manufactures rice bran
oil in semi-edible form for industrial use. The company is also
engaged in the trading of rice bran.
Status of non-cooperation with previous CRA: CRISIL has continued
the rating assigned to the bank facilities of KSPL into Issuer Not
Cooperating category vide press release dated May 27, 2024 on
account of its inability to carry out a review in the absence of
requisite information.
MAA PRABHAWATI: CARE Reaffirms B+ Rating on INR29.78cr LT Loan
--------------------------------------------------------------
CARE Ratings has reaffirmed ratings on certain bank facilities of
Maa Prabhawati Textile Mills (MPTM), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term 29.78 CARE B+; Stable Reaffirmed
Bank Facilities
Rationale and key rating drivers
The rating assigned to bank facilities of MPTM is constrained by
delay in project implementation from April 2024 to March 2025
leading to cost overrun, dependence on vagaries of nature exposing
the company to raw material price volatility risk, constitution as
a partnership firm exposing it to risk of withdrawal of capital,
working capital intensive nature of business and presence in highly
competitive and inherent cyclicality associated with textile
industry.
The rating, however, derives comfort from long experience of
promoters in textile trading, financial tie-up and availability of
subsidy from Bihar government.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Timely completion and rampup of operations post commencement of
the project without any cost and time overrun.
Negative factors
* Deterioration in capital structure with overall gearing of more
than 2.00x due to cost overrun.
* Further delay in commencement of commercial operations
Analytical approach: Standalone
Outlook: Stable
The stable outlook on long term rating of Maa Prabhawati Textile
Mills (MPTM) is based on the expectation that MPTM will continue to
benefit from the experience of its promoters and various incentives
from government once it commences its operations helping it to
achieve envisaged financial performance.
Detailed description of key rating drivers:
Key weaknesses
* Delay in project implementation: The plant was earlier expected
to become operational from April 2024. However, due to delay in
delivery of imported machinery and delay in electrical line, the
commencement got delayed and now the operations are expected to
start from March 2025 instead of April 2024 earlier. Due to time
overrun, the total project cost is expected to increase from INR
39.57 crore to INR45 crore; however cost escalation would be funded
by the promoters (term debt of INR27.08 crore and rest through
promoter funds). Repayment of term loan will begin from April end,
2025.
* Dependence on vagaries of nature exposing the company to raw
material price volatility risk: The profitability of manufacturer
of bed sheet and linen shirting and other textile item depends
largely on the prices of cotton and cotton yarn which are governed
by various factors such as area under cultivation, monsoon,
international demand-supply situation, etc. The cotton textile
industry is inherently prone to volatility in cotton and yarn
price.
* Constitution as a partnership firm exposing it to risk of
withdrawal of capital: Maa Prabhawati Textile Mills's legal status
as partnership firm exposes it to the risk of withdrawal of capital
by the partners at times of personal contingency of the partners
and limited ability of the firm to raise capital.
* Working capital intensive nature of business: The operation of
the firm is working capital intensive in view of adequate inventory
to be kept and credit period to be given to customers to gain
market share. This leads to higher working capital requirement. The
working capital requirement of the firm will be mainly financed
through bank borrowings and creditors.
* Presence in highly competitive and inherent cyclicality
associated with textile industry: The textile industry in India is
highly fragmented and dominated by many medium and small-scale
unorganized players leading to high competition in the industry.
Smaller manufacturing processing units like MPTM are more
vulnerable to intense competition and have limited pricing
flexibility, which constrains their profitability as compared to
larger integrated textile companies who have better efficiencies
and pricing power considering their scale of operations. Textile is
a cyclical industry and closely follows the macroeconomic business
cycles. Further, the prices of raw materials and finished goods are
determined by global demand-supply scenario and are not
limited to only domestic factors. Hence, any shift in
macroeconomic environment globally would have an impact on domestic
textile industry. The textile industry is also intensely
competitive in nature.
Key strengths
* Long experience of promoters in textile trading: The partners of
Maa Prabhawati Textile Mills (MPTM) include Pawan Kumar, Rajesh
Kumar, Suresh Kumar, Beena Devi, Punam Devi & Sangita Devi. The
partners have overall experience of more than 15 years through
Pragati Enterprise & Beena traders, engaged in manufacturing and
trading of blanket, Mosquito net, bed sheet etc and also engaged in
trading of the same through proprietorship concern namely, Madras
Handloom and Rajesh Textiles.
* Financial tie-up: The company has already received tie-up of term
loan of INR 27.08 crore to fund project cost of INR45.00 crore
(increased from INR39.57 crore earlier) from Punjab National Bank
coupled with a Cash Credit limit of INR 2.70 core which shall be
disburse when the entity starts its commercial operation. Till now,
the firm has spent INR24.5 crore funded through term loan of INR
13.00 crore and remaining through promoter funds. Full loan
disbursement is expected in Jan-Feb 2024 when imported machinery
will arrive in India.
* Availability of subsidy from Bihar government: The entity is
eligible for various subsidy from Bihar Government like interest
subsidy up to 10% interest or actual cost whichever is lower,
subsidy on account of SGST for a period of 5 years from the date of
commencement of operation and labour incentive upto INR 20,000 per
employee on a condition that entity shall have to employ
employee for a period of at least 1 year.
Liquidity: Stretched
Liquidity position of the firm is expected to remain stretched in
near future as financing of project cost is largely contingent upon
debt fund. Any delay in disbursement may lead to delay in
completion of project. In FY26, the firm has debt repayment
obligation of INR4.06 crore which is expected to be met out of cash
accruals. Currently the interest payments are being made through
promoter's own funds.
Incorporated on September 5, 2021, Maa Prabhawati Textile Mills
(MPTM) is a partnership concern based in Patna, Bihar. The firm is
setting up a plant having capacity of 720 M.T. per annum for
polyester bed sheet and 3,00,000 Mtrs per annum for Mink, Polar and
Fleece Blanket at a project cost of INR45.00 crore (increased from
INR39.57 crore considered earlier) funded through debt of INR27.08
crore and rest through partner's capital. The plant was earlier
expected to become operational by April 2024. However, due to delay
in delivery of imported machinery and delay in power line, the
commencement got delayed and now the operations are expected to
start from March 2025. The partners include Pawan Kumar, Rajesh
Kumar, Suresh Kumar, Beena Devi, Punam Devi & Sangita Devi. The
partners have overall experience of more than 15 years through
Pragati Enterprise & Beena traders, engaged in sewing and trading
of blanket, Mosquito Net, bed sheet etc and also engaged in trading
of the same through proprietorship concern namely, Madras Handloom
and Rajesh Textiles.
MAHENDRAKUMAR JAIN: CARE Keeps C Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of
Mahendrakumar Jain and Others (MJO) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.80 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated December 28,
2023, placed the rating(s) of MJO under the 'issuer
non-cooperating' category as MJO had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
MJO continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated November 12, 2024,
November 22, 2024 and December 2, 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
Nelamangala Taluk (Karnataka) based Mahendrakumar Jain and Others
(MJO) is promoted by Mr. Mahendra Kumar Jain along with Mr. Mr.
Krishabh Gala, Mr. Kamal U and Mr. Manoj V Shah as joint owners for
the project of setting up two rural godown facilities with the
storage capacity of 55671 Metric Ton in area of 158702 sq. feet at
Bavikere Village, Nelamangala Taluk.
MERCURY CAPITAL: Voluntary Liquidation Process Case Summary
-----------------------------------------------------------
Debtor: Mercury Capital Advisors India Private Limited
9th floor, Tower B DLF Cyber Park, Phase-3,
Udyog Vihar, Gurugram, Haryana, India 122008
Liquidation Commencement Date: December 23, 2024
Court: National Company Law Tribunal, New Delhi Bench
Liquidator: Mr. Amit Jain
D 32 East of Kailash New Delhi 110065
Email: amitjain32@gmail.com
Email: mercury.vl2024@gmail.com
Mobile: 9818582552
Last date for
submission of claims: January 22, 2025
MISHRILAL ASSOCIATES: Ind-Ra Affirms BB- Loan Rating
----------------------------------------------------
India Ratings and Research (Ind-Ra) has taken the following rating
actions on Mishrilal Associates Private Limited's bank facilities:
-- INR150 mil. (reduced from INR200 mil.) Fund-based working
capital limits* affirmed and withdrawn; and
-- INR250 mil. Non-fund-based limits** affirmed and withdrawn.
*Affirmed at 'IND BB-'/Stable/'IND A4+' before being withdrawn
**Affirmed at 'IND A4+' before being withdrawn
Detailed Rationale of the Rating Action
The affirmation reflects MAPL's continued modest EBITDA margin in
FY24, tender-based operations, intense competition, and elongated
net working capital cycle. The ratings, however are supported by
the steady rise in revenue, continued modest credit metrics and
the promoter's experience of over two decades.
Ind-Ra is no longer required to maintain the ratings, as it has
received a no-objection certificate from the lender and withdrawal
request from the issuer. This is consistent with Ind-Ra's Policy on
Withdrawal of Ratings.
Detailed Description of Key Rating Drivers
Modest EBITDA Margin: MAPL's EBITDA margin rose to 5.5% in FY24
(FY23: 4.2%) because of a decline in raw material costs. The ROCE
was 10.8% in FY24 (FY23: 9.0%). In FY25, Ind-Ra expects the EBITDA
margin to remain at similar levels due to similar nature of work
orders being executed.
Tender-based Operations; Intense Competition: Given the intense
competition, the revenue and profitability of entities in this
business entirely depend on the ability to win tenders. Thus, they
have to bid aggressively to obtain contracts, which restricts the
operating margin to moderate levels.
Small Scale of Operations, but Steady Growth in Revenue: MAPL's
revenue rose to INR668 million in FY24 (FY23: INR612 million) due
to an increase in the number of orders executed by the company,
backed by a healthy orderbook. The EBITDA increased to INR36.6
million in FY24 (FY23: INR25.7 million) owing to revenue growth.
During 7MFY25, MAPL booked revenue of INR322.18 million. As of
September 2024, MAPL had an outstanding order book of INR3,440
million, providing revenue visibility of 5x of FY24 revenue. Out of
this, orders worth INR1,782 million are scheduled to be executed in
FY25. In FY25, Ind-Ra expects the revenue to increase due to
sustained pace of order execution.
Continued Modest Credit Metrics: MAPL's interest coverage
(operating EBITDA/gross interest expenses) increased slightly to
1.79x in FY24 (FY23: 1.55x), led by improved profitability and a
decline in the average interest cost, due to a decline in
interest-bearing unsecured loans. The net leverage (total adjusted
net debt/operating EBITDAR) remained modest at 7.27x in FY24
(FY23: 7.29x). In FY25, Ind-Ra expects the credit metrics to
improve further due to a rise in the EBITDA, led by revenue
growth, and the absence of any major debt-led capex plan.
Experienced Promoters: The ratings are supported by the promoters'
experience of nearly two decades in the civil construction
industry, which has helped the company establish strong
relationships with customers as well as suppliers.
Liquidity
Stretched: The cash flow from operations turned negative at
INR38.29 million in FY24 (FY23: INR21.65 million) due to
unfavorable changes in working capital. The free cash flow also
turned negative at INR39.42 million in FY24 (FY23: INR21.31
million). The net working capital cycle remained stretched and
elongated to 149 days in FY24 (FY23: 132 days), mainly on account
of increased debtor days of 165 days (128 days). Furthermore, MAPL
does not have any capital market exposure and relies on banks and
financial institutions to meet its funding requirements. MAPL has
debt repayment obligations of INR6.6 million and INR5 million in
FY25 and FY26, respectively. The average maximum utilization of the
fund-based limits was 83.12% and that of the non-fund-based limits
was 86.5% during the 12 months ended October 2024. The cash and
cash equivalents stood at INR2.17 million at FYE24 (FYE23: INR2.74
million).
About the Company
Incorporated in 2011, MAPL is engaged in the erection and
commissioning of electrical installations. The registered office of
the company is in Bareilly, Uttar Pradesh.
MONA PORTFOLIO: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Mona Portfolio Limited
Unit-1200, 12th Floor, Best Sky Tower,
Netaji Subhash Place, Pitampura,
Shakur Pur I Block, North West
Delhi 110034
Insolvency Commencement Date: December 05, 2024
Estimated date of closure of
insolvency resolution process: June 4, 2025
Court: National Company Law Tribunal, New Delhi Bench
Insolvency
Professional: Mr. Mahesh Agarwal
D-13, Suvidha Apartments,
Sector-13, Rohini, Near DC Chowk,
New Delhi 110085
Email: ip387ma@gmail.com
Last date for
submission of claims: January 4, 2025
MP BORDER: CARE Keeps D Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of MP Border
Checkpost Development Company Limited (MBCDCL) continues to remain
in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 552.38 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 January 9,
2024, placed the rating(s) of MBCDCL under the 'issuer
non-cooperating' category as MBCDCL had failed to provide
information for monitoring of the rating as agreed to in its Rating
Agreement. MBCDCL continues to be non-cooperative despite repeated
requests for submission of information through e-mails dated
November 24, 2024, December 4, 2024 and December 14, 2024 among
others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
MP Border is a Special Purpose Vehicle, sponsored by IL&FS
Transportation Networks Ltd. (ITNL, rated CARE D; Issuer Not
Cooperating) and Spanco in the ratio of 74:26, to perform
up-gradation, modernization, construction, operation and
maintenance of 24 Border Check Posts (BCPs) and two Central Control
Facilities (CCFs) on Build, Operate and Transfer (BOT) basis for a
period of 12.5 years starting from appointed date i.e. May 05,
2011. CARE does not have any update on the latest developments in
this regard.
MURUGAR SPINNING: Ind-Ra Cuts Loan Rating to BB-
------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Sri Murugar
Spinning Mill rating to IND BB-/Negative(ISSUER NOT COOPERATING).
The issuer did not participate in the surveillance exercise,
despite continuous requests and follow-ups by the agency through
emails and phone calls. Thus, the rating is based on the best
available information. Therefore, investors and other users are
advised to take appropriate caution while using the rating.
The detailed rating actions are:
-- INR294.7 mil. Fund Based Limit downgraded with IND BB-/
Negative (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT
COOPERATING) rating;
-- INR32.2 mil. Fund Based Working Capital Limit downgraded with
IND BB-/Negative (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT
COOPERATING) rating;
-- INR24.7 mil. Non-fund Based Limits maintained in non-
cooperating category with IND A4+ (ISSUER NOT COOPERATING)
rating;
-- INR35.35 mil. Term loan due on April 28, 2031 downgraded with
IND BB-/Negative (ISSUER NOT COOPERATING) rating; and
-- INR102.25 mil. Term Loans due on April 28, 2031 downgraded
with IND BB-/Negative (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Detailed Rationale of the Rating Action
The downgrade is in accordance with Ind-Ra's policy of Guidelines
on What Constitutes Non-Cooperation. As per the policy, ratings of
non-cooperative ratings issuers may get downgraded during
subsequent reviews, if the issuer continues to remain
non-cooperative. With passage of time and absence of updated
information, the risk of sustaining the rating at current levels by
relying on dated information increases, which may be reflected
through a downgrade rating action
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with Sri Murugar Spinning Mill
while reviewing the rating. Ind-Ra had consistently followed up
with Sri Murugar Spinning Mill over emails, apart from phone
calls.
Limitations regarding Information Availability
Ind-Ra has reviewed the credit ratings of Sri Murugar Spinning Mill
on the basis of best available information and is unable to provide
a forward-looking credit view. Hence, the current outstanding
rating might not reflect Sri Murugar Spinning Mill's credit
strength. If an issuer does not provide timely business and
financial updates to the agency, it indicates weak governance,
particularly in 'Transparency of Financial Information'. The agency
may also consider this as symptomatic of a possible
disruption/distress in the issuer's credit profile. Therefore,
investors and other users are advised to take appropriate caution
while using these ratings.
About the Company
Established in 1997, SMSM is a partnership firm involved in the
manufacturing of cotton, polyester and blended yarn with a capacity
of 45,000 spindles. Their registered office is in Coimbatore, Tamil
Nadu. The promoters are Naresh Kumar and Parathayani Varadharajan.
N.N. SAHA: Ind-Ra Cuts Loan Rating to B
---------------------------------------
India Ratings and Research (Ind-Ra) has downgraded N. N. Saha &
Sons Agro Private Limited rating to IND B/Negative (ISSUER NOT
COOPERATING). The issuer did not participate in the surveillance
exercise, despite continuous requests and follow-ups by the agency
through emails and phone calls. Thus, the rating is based on the
best available information. Therefore, investors and other users
are advised to take appropriate caution while using the rating.
The detailed rating action is:
-- INR240 mil. Fund Based Working Capital Limit downgraded with
IND B/Negative (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Detailed Rationale of the Rating Action
The downgrade is in accordance with Ind-Ra's policy of Guidelines
on What Constitutes Non-Cooperation. As per the policy, ratings of
non-cooperative ratings issuers may get downgraded during
subsequent reviews, if the issuer continues to remain
non-cooperative. With passage of time and absence of updated
information, the risk of sustaining the rating at current levels by
relying on dated information increases, which may be reflected
through a downgrade rating action
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with N. N. Saha & Sons Agro
Private Limited while reviewing the rating. Ind-Ra had consistently
followed up with N. N. Saha & Sons Agro Private Limited over
emails, apart from phone calls.
Limitations regarding Information Availability
Ind-Ra has reviewed the credit ratings of N. N. Saha & Sons Agro
Private Limited on the basis of best available information and is
unable to provide a forward-looking credit view. Hence, the current
outstanding rating might not reflect N. N. Saha & Sons Agro Private
Limited's credit strength. If an issuer does not provide timely
business and financial updates to the agency, it indicates weak
governance, particularly in 'Transparency of Financial
Information'. The agency may also consider this as symptomatic of a
possible disruption/distress in the issuer's credit profile.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings.
About the Company
Incorporated in 2008, N. N. Saha & Sons Agrois engaged in the
trading of basmati and non-basmati rice in Kolkata (West Bengal).
NIHA INTERNATIONAL: CARE Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Niha
International Private Limited (NIPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.45 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 November 24,
2023, placed the rating(s) of NIPL under the 'issuer
non-cooperating' category as NIPL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
NIPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated October 9, 2024,
October 19, 2024, October 29, 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
Niha International Private Limited (NIPL), a Chennai based company,
is engaged in recycling of liquor bottles since 2002. The company
was originally incorporated in February 1998 by Mr. Murari, Mr.
Krishna Prasad and Mr. Narayanan. However, it was non-operational
since its inception and was subsequently taken over by the current
directors of NIPL in 2002.
Status of non-cooperation with previous CRA: CRISIL has continued
the rating assigned to the bank facilities of NIPL into Issuer Not
Cooperating category vide press release dated November 30, 2023 on
account of its inability to carry out a review in the absence of
the requisite information from the company.
NIPANI INFRA: Ind-Ra Affirms BB+ Bank Loan Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Nipani Infra and
Industries Private Limited's (NIIPL) bank facilities as follows:
-- INR100 mil. Fund-based working capital limit affirmed with IND
BB+/Stable/IND A4+ rating;
-- INR135 mil. Non-fund-based working capital limit affirmed with
IND A4+ rating; and
-- INR13.62 mil. (reduced from INR21.80 mil.) Term loan due on
March 31, 2029 affirmed with IND BB+/Stable rating.
Detailed Rationale of the Rating Action
The affirmation reflects NIIPL's continued small scale of
operations, average EBIDTA margins and stretched liquidity. In the
medium term, Ind-Ra expects the revenue, EBITDA margins and credit
metrics to remain at levels similar to FY24. The ratings are
supported by NIIPL's comfortable credit metrics and its promoters'
more than two decades of experience in the construction industry.
Detailed Description of Key Rating Drivers
Continued Small Scale of Operations: NIIPL's scale of operations
remained small, with its revenue declining to INR582.98 million in
FY24 (FY23: INR762.91 million) and the EBIDTA slipping to INR58.21
million (INR64.43 million), due to delays in the execution of a
major building foundation work in northeast India. NIIPL had an
unexecuted orderbook of INR1,568.52 million as of November 2024, of
which orders worth INR627.49 million are to be executed by end-FY25
and the balance by end-FY26, giving medium-term revenue visibility.
As of October 2024, NIIPL booked revenue of INR324.7 million.
Ind-Ra expects the revenue to remain at levels similar to FY24,
given the company's existing order book and demand.
Average EBIDTA Margins: NIIPL's EBITDA margins increased but
remained average at 9.98% in FY24 (FY23: 8.45%), due to the
execution of a higher number of steel buildings works which have
higher margins than that of civil construction works. Its return on
capital employed fell to 14.5% in FY24 (FY23: 20.6%). Ind-Ra
expects the EBITDA margins to remain at a similar level in FY25,
due to no major change in the cost structure given the similar
nature of business.
Stretched Liquidity: The net working capital cycle elongated to 177
days in FY24 (FY23: 81 days) owing to an increase in the receivable
period to 117 days (49 days) due to a delay in payments from
debtors. The cash flow from operations declined to negative
INR32.25 million in FY24 (FY23: INR56.27 million), mainly due to
unfavorable changes in the working capital. This, along with the
capex of INR32.61 million in FY24 (FY23: INR27.79 million), caused
the free cash flow to decline to negative INR64.86 million
(INR24.84 million). NIIPL's average maximum utilization of the
fund-based and non-fund-based limits was 90.54% and 89.20%,
respectively, during the 12 months ended October 2024.
Comfortable Credit Metrics: NIIPL had a gross interest coverage
(operating EBITDA/gross interest expenses) ratio of 3.79x in FY24
(FY23: 7.93x) and the net leverage (adjusted net debt/operating
EBITDAR) of 2.99x (1.7x). The credit metrics deteriorated mainly
due to a decline in the EBITDA toINR58.21 million (INR64.43
million). In FY25, Ind-Ra expects the credit metrics to remain
stable in the absence of major capex plans in the near term and the
scheduled repayments of its term loans.
Experienced Promoters: The company's promoters have over two
decades of experience in the light gauge steel building industry,
leading to established relationships with its customers as well as
suppliers.
Liquidity
Stretched: The firm does not have any capital market exposure and
relies on banks and financial institutions to meet its funding
requirements. The cash and cash equivalents stood at INR37.18
million at FYE24 (FYE23: INR35.41 million). The company has
scheduled debt repayments of INR11.7 million and INR11.2 million in
FY25 and FY26, respectively.
Rating Sensitivities
Negative: A decline in the absolute EBITDA, leading to
deterioration in the overall credit metrics with the interest
coverage reducing below 2.2x and/or pressure on the liquidity
position and working capital cycle, all on a sustained basis, could
lead to a negative rating action.
Positive: A significant increase in the scale of operations with
increased diversification of the order book, while maintaining the
overall credit metrics and liquidity profile, all on a sustained
basis, could lead to a positive rating action.
About the Company
NIIPL was incorporated in 2018 and was initially set up as Nipani
Industries in 1996. Its registered office is in Jabalpur, Madhya
Pradesh. The company is engaged in the construction of light gauge
steel buildings, along with conventional buildings and has executed
orders all over India.
ONEUP MOTORS: Ind-Ra Keeps D Loan Rating in NonCooperating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Oneup Motors
India Pvt. Ltd.'s instrument(s) rating in the non-cooperating
category. The issuer did not participate in the surveillance
exercise, despite continuous requests and follow-ups by the agency
through emails and phone calls. Therefore, investors and other
users are advised to take appropriate caution while using the
rating. The rating will continue to appear as 'IND D (ISSUER NOT
COOPERATING)' on the agency's website.
The detailed rating actions are:
-- INR195 mil. Fund Based Working Capital Limit maintained in
non-cooperating category with IND D (ISSUER NOT COOPERATING)
rating; and
-- INR40.3 mil. Term Loan due on March 31, 2023 maintained in
non-cooperating category with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Detailed Rationale of the Rating Action
The ratings are maintained in the non-cooperating category in
accordance with Ind-Ra's policy of Issuer Non-Cooperation.
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with Oneup Motors India Pvt. Ltd
while reviewing the rating. Ind-Ra had consistently followed up
with Oneup Motors India Pvt. Ltd over emails, apart from phone
calls.
Limitations regarding Information Availability
Ind-Ra has reviewed the credit ratings of Oneup Motors India Pvt.
Ltd on the basis of best available information and is unable to
provide a forward-looking credit view. Hence, the current
outstanding rating might not reflect Oneup Motors India Pvt. Ltd.'s
credit strength. If an issuer does not provide timely business and
financial updates to the agency, it indicates weak governance,
particularly in 'Transparency of Financial Information'. The
agency may also consider this as symptomatic of a possible
disruption / distress in the issuer's credit profile. Therefore,
investors and other users are advised to take appropriate caution
while using these ratings.
About the Company
Incorporated in 2006, Oneup Motors has an automobile dealership of
Maruti Suzuki India in Lucknow, Uttar Pradesh.
ORIENT FROZEN: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Orient Frozen Foods LLP
No 51/1B2, No 4, Poovalai Village
Gummidipundi Taluk, Thiruvallur
Tamil Nadu, India - 601201
Insolvency Commencement Date: December 20, 2024
Estimated date of closure of
insolvency resolution process: June 18, 2025
Court: National Company Law Tribunal, Chennai Bench-II
Insolvency
Professional: Mr. A. Pitchai
Door No.891-F, Plot No. A28/1
15th Street, Rahmath Nagar,
Behind Child Jesus Church,
Tirunelveli, Tamil Nadu 627011
Email Id: pitchai.a1958@gmail.com
-- and --
A. Pitchai
c/o Ancoraa Resolution Private Limited,
1412, 14th Floor, Real Tech Park,
Sector 30 A, Vashi, Navi Mumbai - 400 703
Email Id: cirp.offllp@ancoraa.com
Last date for
submission of claims: January 4, 2025
PAITHAN MEGA: CARE Hikes Rating on INR13.40cr LT Loan to B
----------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Paithan Mega Food Park Private Limited (PMFPPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term 13.40 CARE B; Stable Upgraded from
Bank Facilities CARE B-; Stable
Rationale and key rating drivers
The revision in rating to the bank facilities of PMFPPL factors in
the creation of Debt Servicing Reserve Account (DSRA) against its
instalments of the major term loan availed from one of its banks
along with continuous funding support extended by the group.
The rating continues to be constrained by its small scale of
operations with moderate profit margins with weak debt coverage
indicators, working capital intensive nature of operations along
with stretched liquidity position and presence in competitive and
fragmented industry.
The rating, however, continues to derive strength from long track
record of operations and experience promoters, established
relationship with reputed albeit concentrated customer base and
comfortable capital structure.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Improvement in scale of operations marked by total operating
income (TOI) exceeding INR45 crore on sustainable basis
* Improvement in PBILDT margin above 20% on a sustained basis
* Improvement in the debt coverage indicators marked by above unity
Debt Service Coverage Ratio (DSCR) on a sustained
Basis
Negative factors
* Decline in PAT margin below 1% on a sustained basis
* Any additional debt funded expenditure resulting in overall
gearing level above 1.5x on a sustained basis.
* Deterioration in liquidity position and inability of promoters to
infuse funds in timely manner resulting in further deterioration in
liquidity position
Analytical approach: Standalone
Outlook: Stable
The 'Stable' rating outlook reflects the sustained business risk
profile of the company along with funding support from the group.
The financial risk profile expected to remain stable marked by
stabilized scale of operations and moderate profitability margins
supported by stable offtake from its major reputed customers.
Detailed description of key rating drivers:
Key weaknesses
* Small scale of operations: The overall scale of operations stood
small marked by Total Operating Income (TOI) in the range of
INR32.55 crore to INR39.49 crore during FY21 to FY24. The TOI
declined by 18% to 32.55 crore in FY24 as against INR39.49 crore in
FY23 as the production of litres of juices has remained lower due
to weak season and reduction of pack size from 150 millilitre (ml)
to 125 ml by its major customers viz. Hector Beverages Pvt Ltd
(HBPL) leading to lower quantity sold during the year. The company
processing capacity utilisation and cold storage facilities
remained at 70% and 60% respectively. During H1FY25, it posted TOI
of INR 10.76 crore. It has moderate net worth base, which stood at
INR66.52 crore as on March 31, 2024 (vis-à-vis INR66 crore as on
March 31, 2023). The company expects its revenue to remain in the
similar range in the near to medium term.
* Moderate profit margins with weak debt coverage indicators:
PMFPPL's operating profitability exhibited a stable trend with a
profit before interest, lease rentals, depreciation, and taxation
(PBILDT) margin within the range of 15-18% in the past three years
ended FY24. However, the same has improved to 17.61% in FY24 from
15.84% in FY23 on account of reduction in raw material consumption
cost on the back of reduction in the pack sizes produced for its
customers along with increase in the rates of the packing charges
collected from its customers. Profit after Tax (PAT) margin stood
modest at 1.60% in FY24 (vis-à-vis 1.51% in FY23) on account of
sizeable interest and depreciation costs. Return on capital
employed (ROCE) stood low at 3.37% during FY24 as against 3.8% in
FY23 with a fixed asset turnover of 0.26x during FY24 as against
0.31x in FY23. Going forward, profitability is expected to moderate
owing to expected increase in input prices. The debt coverage
indicators remained weak marked by total debt to GCA remained at
17.39x in FY24 compared to 17.95x in FY23. Interest coverage ratio
also remained weak at 1.58x in FY24 (vis-à-vis 1.51x in FY23).
* Presence in competitive and fragmented industry: Despite being
capital intensive, the entry barrier for cold storage, food
processing is low. As a result, storage and food processing
business in the region has become competitive. Further, it also
faces competition from other small to mid-sized players across the
regions resulting to moderate profitability margins in the past.
Key strengths
* Long track record of operations and experienced promoters: The
Nath Group is spearheaded by Mr. Nandkishor Kagliwal (Chairman) who
is responsible for the overall operations of the group.
Mr. Kagliwal has more than three decades of experience in the
agriculture business and Seed production through various group
entities. Mr. Satish Kagliwal (Managing Director of PMFPPL) took
over the responsibility of Nath Bio-Genes (India) Limited (NBGIL)
as the Managing Director in 1990 and is responsible for the overall
operations of the company. He has an experience of more
than two decades in Agriculture business and Seed production.
Further, the company receives need based funding support from its
group.
* Established relationship with reputed albeit concentrated
customer base: PMFPPL is exposed to significant customer
concentration risk with one customer namely HBPL accounting for
more than 70% of total sales in FY24. Nevertheless, the risk is
mitigated due to established relationship with reputed customers
and working in multiple segments like juice processing with aseptic
packaging of it for HBPL. The company also does ORS, juice
processing and packing of tetra packs for FDC Limited and Halewood
Laboratories Private Limited on job work basis. Its cold storage
facilities of 1200MT and Integrated Quick Freezing (IQF) are
utilized by various reputable brands across FMCG segment. Company
also provides warehouse facility to its group entity namely NBGIL
and fully developed industrial plots to other food processors.
Company is expected to receive regular orders from customers in all
segments which can give some leverage to concentration risk.
Nevertheless, diversification of the customer base will thus remain
crucial from the credit perspective.
* Comfortable capital structure: The entity's capital structure
stood comfortable as marked by an overall gearing of 0.84x as on
March 31, 2024 (vis-à-vis 0.88x as on March 31, 2023) with high
reliance on external debt against moderate tangible networth base.
Nevertheless, its debt profile largely comprises unsecured loans
from promoters (interest free) and term debt from banks. The total
outside liabilities to net worth stood comfortable at 0.97x as on
March 31, 2024 (1.02x as on March 31, 2023). The marginal
improvement in the capital structure was on account of profit
accretion to reserves and scheduled repayment of term debt. Going
forward, the capital structure is expected to improve on account of
profit accretion to reserves and repayment of term debt.
Liquidity: Stretched
Stretched liquidity is marked by tightly matched accruals to the
repayment for FY25, however comfort can be drawn from fact that
promoters and group entities are continuously infusing funds in
company in form of unsecured loans thereby supporting its debt
repayments. The promoters and group entities have infused interest
free unsecured loan of INR5.43 crore in FY24 and INR4.09 crore
during H1FY25. Company's free cash and bank balance stood INR 3.71
crore as on March 31, 2024. Further, average utilization and
maximum average utilisation of working capital bank borrowing of
INR7 crore remained utilized at 89.26% and 94.85 % respectively for
last 12 months ending September 2024. Cash flow from operating
activities stood positive at INR4.25
crore in FY24 (vis-à-vis positive of INR6.95 crore in FY23).
However, the company has already created DSRA which is equivalent
of 1.6 quarter instalment and interest of 6 months against the term
loan availed from IDBI Bank which provides support the repayments
in case of any contingencies.
PMFPPL is an SPV formed in 2011 for setting up a mega food park
under the 11th five-year plan as approved by Ministry of Food
Processing of India (MOFPI). The company was formed as an SPV of
Nath Group. PMFPPL has a land admeasuring to about 100 acres at
Paithan taluka near Aurangabad, which has been developed as Mega
Food Park (MFP).
PATEL PHOSCHEM: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Patel
Phoschem Limited (PPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 14.75 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated December 29,
2023, placed the rating(s) of PPL under the 'issuer
non-cooperating' category as PPL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
PPL continues to be non-cooperative despite repeated requests for
submission of information through emails dated November 13, 2024,
November 23, 2024 and December 3, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
Udaipur (Rajasthan) based Patel Phoschem Private Limited (PPL) was
incorporated in 2006 by Mr. Roop Lal Patel along with his family
members. In April, 2014, the company changed its constitution from
private limited to public limited. Initially, PPL was engaged in
the business of executing turnkey projects related to installation
of fertiliser plants which includes construction of plant to supply
of machineries. Later, from September, 2012, PPL started production
of SSP, GSSP and PA.
PLUTO CERAMIC: CARE Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Pluto
Ceramic (PC) continue to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 4.30 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 1.25 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 November 2,
2023, placed the rating(s) of PC under the 'issuer non-cooperating'
category as PC had failed to provide information for monitoring of
the rating as agreed to in its Rating Agreement. PC continues to be
non-cooperative despite repeated requests for submission of
information through e-mails dated September 17, 2024, September 27,
2024, October 7, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
Wankaner-based (Gujarat) PC was established as a partnership firm
by its key partners Mr Sandipbhai Arjanbhai Chikhaliya, Mr
Arvindbhai Keshavjibhai Metaliya, Mr Jayeshhai Dineshbhai Ranipa
and Mr Gautam Ramjibhai Patel in December 2010. The commercial
production for manufacturing of Ceramic wall tiles, Ceramic wall
glazed tiles and Ceramic digital wall tiles commenced in November
2011. Currently, PC operates out of its sole manufacturing unit in
Wankaner, with an installed capacity of 22.8 lakh boxes (tile size
of 8" X 12" and 12" X 12") per annum. PC exports approximately
2-10% of its products through merchant exporter, who in turn
primarily exports to United Arab Emirates (UAE) and other African
countries.
PRERNA SERVICES: CARE Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Prerna
Services Private Limited (PSPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.22 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 2.00 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 January 4,
2024, placed the rating(s) of PSPL under the 'issuer
non-cooperating' category as PSPL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
PSPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated November 19, 2024,
November 29, 2024 and December 9, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
Prerna Service Private Limited (PSPL) was incorporated in February
2013; however, the commercial operations of the company have
started in February 2015. The company is engaged in manufacturing
as well as trading of I.T. products such as personal computers,
smart phones, chargers, tablets, etc.
PROVENTUS AGER: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Proventus
Ager India Private Limited (PAIPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 13.00 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 November 2,
2023, placed the rating(s) of PAIPL under the 'issuer
non-cooperating' category as PAIPL had failed to provide
information for monitoring of the rating as agreed to in its Rating
Agreement. PAIPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails dated
September 17, 2024, September 27, 2024, October 7, 2024 among
others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
Vadodara-based PAIPL is promoted by Mr Doraprasad Nimmagada
(promoter of Jay Polypack Private limited and Jay Agro Industries)
in January 2015. The board of directors of PAPL comprises of Mr
Doraprasad Nimmagada, his wife Mrs Aruna Nimmagada and his son Mr.
Vijay Nimmagada. PAIPL has commenced the trading operations during
FY16 (refers to the period April 1 to March 31) from May 2015. The
company primarily procures Agrochemicals, Pesticides and
Insecticides from its group
entity i.e. Jay Agro Industries and markets it through dealers
across the country.
PUNE SHOLAPUR: CARE Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Pune
Sholapur Road Development Company Limited (PSRDCL) continues to
remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 736.46 CARE D; ISSUER NOT COOPERATING
Facilities 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 October 10, 2023, placed the rating(s) of PSRDCL under the
'issuer non-cooperating' category, as PSRDCL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. PSRDCL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls, and letter/emails dated August 25, 2024, September 4,
2024, September 14, 2024, and January 7, 2025.
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
At the time of last rating on October 10, 2023, following were the
key rating weaknesses:
Key weakness
* Delays in debt servicing: PSRDCL was under National Company Law
Tribunal (NCLT) moratorium since October 15, 2018 and was
classified under 'Red category' by National Company Law Appellate
Tribunal (NCLAT) vide order dated February 11, 2019, leading to
delays in debt servicing. Subsequently, master restructuring
agreement has been entered with the lenders. However, CARE Ratings
is awaiting supporting documents towards regular debt servicing
track record.
Incorporated in 2009, PSRDCL is a special purpose vehicle (SPV)
floated by IL&FS Transportation Networks Ltd. (ITNL, rated 'CARE D/
Issuer Not Cooperating'). PSRDCL was awarded project by National
Highways Authority of India (NHAI, rated 'CARE AAA; Stable') to
undertake design, engineering, construction, development, finance
and operation & maintenance of four-laning
of Pune-Sholapur section of NH-9 from km 144.400 to km 249.000 in
the State of Maharashtra under National Highways Development
Project Phase III on design, build, finance, operate and transfer
(DBFOT) basis. CARE Ratings does not have update on the latest
developments in this regard. On August 23, 2013, the company
received provisional commercial operations date (PCOD) for 80.85 km
of the total stretch of 104.6 km (77%). Toll collection commenced
from August 23, 2013. Thereafter the company received final COD on
February 3, 2016, and was allowed to collect toll on the entire
stretch. PSRDCL was initially promoted by ITNL (rated 'CARE D;
INC'); however, the entire shareholding of ITNL was transferred in
FY24 to Roadstar Infra Investment Trust.
RUKMINI IRON: Ind-Ra Keeps D Loan Rating in Non-Cooperating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Rukmini Iron
Private Limited's instrument(s) rating in the non-cooperating
category. The issuer did not participate in the surveillance
exercise, despite continuous requests and follow-ups by the agency
through emails and phone calls. Therefore, investors and other
users are advised to take appropriate caution while using the
rating. The rating will continue to appear as 'IND D (ISSUER NOT
COOPERATING)' on the agency's website.
The detailed rating actions are:
-- INR380 mil. Fund Based Working Capital Limit maintained in
non-cooperating category with IND D (ISSUER NOT COOPERATING)
rating; and
-- INR93.98 mil. Term loan due on October 31, 2024 maintained in
non-cooperating category with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with Rukmini Iron Private Limited
while reviewing the rating. Ind-Ra had consistently followed up
with Rukmini Iron Private Limited over emails, apart from phone
calls.
Limitations regarding Information Availability
Ind-Ra has reviewed the credit ratings of Rukmini Iron Private
Limited on the basis of best available information and is unable to
provide a forward-looking credit view. Hence, the current
outstanding rating might not reflect Rukmini Iron Private Limited's
credit strength. If an issuer does not provide timely business and
financial updates to the agency, it indicates weak governance,
particularly in 'Transparency of Financial Information'. The agency
may also consider this as symptomatic of a possible
disruption/distress in the issuer's credit profile. Therefore,
investors and other users are advised to take appropriate caution
while using these ratings.
About the Company
Incorporated in 2004, New Delhi-based Rukmini Iron is engaged in
the manufacturing and trading of mild steel billets/ingots,
thermos-mechanically treated bars and other allied products.
RUPAMATA POWER: Ind-Ra Hikes Bank Loan LongTerm Rating to BB-
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Rupamata Power
Limited's (RPL) bank loans' long-term rating to 'IND BB-' from 'IND
B+' with a Stable Outlook and short-term rating to 'IND A4+' from
'IND A4' as follows:
-- INR75 mil. Fund-based working capital limit upgraded with IND
BB-/Stable/IND A4+ rating; and
-- INR300 mil. Term loan issued on April 13, 2022 due on January
13, 2030 upgraded with IND BB-/Stable rating.
Detailed Rationale of the Rating Action
The rating upgrade reflects an improvement in RPL's scale of
operations, which is likely increase further in FY25, along with a
rise in the EBITDA margin in FY24. The promoters' decade-long
experience in the jaggery production industry also supports the
ratings. However, the ratings remain constrained by the small scale
of operations, modest EBITDA margins and credit metrics and the
inherent risk of raw material price fluctuation.
Detailed Description of Key Rating Drivers
Sugarcane Price and Availability Fluctuation Risk: Sugarcane
procurement remains a major component of the cost structure,
accounting for around 80% of the overall revenue in FY24. Sugarcane
price, availability and quality are also subject to climatic
conditions, soil quality and adequate rain before harvesting
season. The lower-than-adequate rains received in FY23 slightly
affected the offseason supply of cane capping the jaggery
production in FY24 at 16,160MT (FY25: 17,100MT). Thus, the
operating margin will remain exposed to raw material price
movements. The sugarcane cost per metric ton paid in FY24 was
INR2,700.
Modest Credit Metrics: RPL's interest coverage (operating
EBITDA/gross interest expenses) was 2.01x in FY24 (FY23: 5x) and
the net leverage (adjusted net debt/operating EBITDAR) was 14.92x
(1,765x). In FY24, the interest coverage declined due to a rise in
the interest expense pertaining to unsecured and related-party
loans. The net leverage improved but remained high due to a rise in
the debt obligation and minimal cash balances. In FY25, Ind-Ra,
expects the credit metrics to remain at similar levels due to an
absence of debt-funded capex and increasing internal accruals.
Until March 31, 2024, RPL had already incurred INR681.5 million for
capex, which was funded by a term loan of INR468.25 million and the
rest INR213.32 million through internal accruals and unsecured
loans.
Improvement in Revenue; Small Scale of Operations: RPL's revenue
improved to INR331.97 million in FY24 (FY23: INR20.38 million) and
EBITDA to INR50.67 million (INR0.3 million) due to an increase in
the volume produced. However, its scale remains small as the
company commenced its manufacturing operations in December 2022 and
started generating revenue in March 2023. The total installed
capacity of crushing 1,250 tons cane day was utilized for 119 days
out of total 180 available crushing days in FY24 (FY23: 60 days).
Jaggery powder production increased to 16,160MT in FY24 (FY23:
2,220.3MT), on account of the higher volumes of the cane crushed;
Ind-Ra expects the revenue to improve further in FY25 due to same
reason.
Improvement in Modest EBITDA Margin: The ratings also factor in
RPL's modest EBITDA margin of 15.3% in FY24 (FY23: 1.47%) with a
return on capital employed of 3.7% (0.1%). In FY24, the EBITDA
margin improved due to an increase in the revenue resulting in a
better absorption of fixed costs. The EBITDA margins are
susceptible to volatility in raw material prices. In FY25, Ind-Ra
expects the EBITDA margin to improve but remain modest, amid high
operating and manufacturing cost, during the initial years of
operations.
Experienced Promoter: The ratings are supported by the promoter -
Venkat V. Gund's almost 10 years of experience in the jaggery
manufacturing industry. This has facilitated the company to
establish operational efficiency along with strong relationships
with its customers as well as suppliers.
Liquidity
Stretched: RPL's average maximum utilization of the fund-based
limits was 99.75% during the 12 months ended November 2024. The
cash flow from operations remained negative at INR211.65 million in
FY24 (FY23: negative INR212.57 million) due to increased working
capital requirement for harvesting season. Furthermore, the free
cash flow stood at negative INR219.06 million (FY23: negative
INR287.78 million) due to minimal maintenance capex. The average
net working capital cycle stood at 627 days in FY24 (FY23: 1,925
days) and it improved mainly on account of increased sales
resulting in a shorter finished goods inventory hold up period. The
company pays its suppliers (farmers, harvesting and transportation
team) in advance and receives payment from its customers in advance
as well. RPL has debt repayment obligations of INR43.9 million in
FY25 and FY26 each. The cash and cash equivalents stood at INR11.4
million at FYE24 (FYE23: INR0.15 million). RPL does not have any
capital market exposure and relies on banks and financial
institutions to meet its funding requirements.
Rating Sensitivities
Negative: A substantial decrease in the scale of operations or
operating profitability, or deterioration in the overall credit or
the liquidity profile, on a sustained basis, could lead to a
negative rating action.
Positive: A substantial increase in the scale of operations and
operating profitability, along with an improvement in the overall
credit profile and liquidity profile, with the net leverage
reducing, all on a sustained basis, could lead to a positive rating
action.
About the Company
Incorporated in December 2011 with an intention of working in the
field of power generation, RPL decided to pivot its line of
business to jaggery powder manufacturing. RPL finished setting up a
jaggery powder manufacturing unit with a total cane crushing
capacity of 1,250 ton cane per day, in Roshanpuri, Majalgaon,
Maharashtra and commenced operations in December 2022.
RYDAK SYNDICATE: Ind-Ra Cuts Term Loan Rating to BB-
----------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Rydak Syndicate
Limited rating to IND BB-/Negative (ISSUER NOT COOPERATING). The
issuer did not participate in the surveillance exercise, despite
continuous requests and follow-ups by the agency through emails and
phone calls. Thus, the rating is based on the best available
information. Therefore, investors and other users are advised to
take appropriate caution while using the rating.
The detailed rating actions are:
-- INR200 mil. Fund Based Working Capital Limit downgraded with
IND BB-/Negative (ISSUER NOT COOPERATING) rating; and
-- INR20 mil. Non-Fund Based Working Capital Limit maintained in
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Detailed Rationale of the Rating Action
The downgrade is in accordance with Ind-Ra's policy of Guidelines
on What Constitutes Non-Cooperation. As per the policy, ratings of
non-cooperative ratings issuers may get downgraded during
subsequent reviews, if the issuer continues to remain
non-cooperative. With passage of time and absence of updated
information, the risk of sustaining the rating at current levels by
relying on dated information increases, which may be reflected
through a downgrade rating action
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with Rydak Syndicate Limited
while reviewing the rating. Ind-Ra had consistently followed up
with Rydak Syndicate Limited over emails, apart from phone calls.
Limitations regarding Information Availability
Ind-Ra has reviewed the credit ratings of Rydak Syndicate Limited
on the basis of best available information and is unable to provide
a forward-looking credit view. Hence, the current outstanding
rating might not reflect Rydak Syndicate Limited's credit strength.
If an issuer does not provide timely business and financial updates
to the agency, it indicates weak governance, particularly in
'Transparency of Financial Information'. The agency may also
consider this as symptomatic of a possible disruption/distress in
the issuer's credit profile. Therefore, investors and other users
are advised to take appropriate caution while using these ratings.
About the Company
Incorporated in 1898, RSL has integrated tea manufacturing
operations, comprising cultivation of tea and manufacturing of
black crush, tear, curl tea. It has six tea estates covering a
total area of 3,447 hectares in West Bengal and Assam, and has a
total tea manufacturing capacity of 7 million kg per year. RSL is
listed on the Calcutta Stock Exchange.
SAHARA HOSPITALITY: CARE Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Sahara
Hospitality Limited (SHL) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 506.74 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 20.00 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 January 9,
2024, placed the rating(s) of SHL under the 'issuer
non-cooperating' category as SHL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
SHL continues to be non-cooperative despite repeated requests for
submission of information through emails dated November 24, 2024,
December 4, 2024 and December 14, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
SHL operates Sahara Star Hotel in Mumbai, the construction of which
was planned in three phases. Phase-I of the project was completed
in October 2007 wherein 223 rooms and 9 specialty restaurants
outlets where constructed. Phase II and III includes construction
of 209 rooms (186 rooms in phase-II and remaining in phase-III),
new restaurants, banquets and conference facilities, meeting rooms,
swimming pool (4100 sq ft), internationally branded salon, preview
theatre, gymnasium, health clubs, squash and badminton courts, a
5-floor tower with banquet hall, business centres, night clubs,
event hall (25 ft height), entertainment zone and pent house etc.
Status of non-cooperation with previous CRA: Acuite has continued
the rating assigned to the bank facilities of SHL into Issuer Not
Cooperating category vide press release dated May 24, 2024 on
account of its inability to carry out a review in the absence of
the requisite information from the company.
SAIFY INTERIORS: CARE Lowers Rating on INR5.50cr ST Loan to D
-------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Saify Interiors (SI), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Short Term Bank 5.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Downgraded from
CARE A4
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated December 22,
2023, placed the rating(s) of SI under the 'issuer non-cooperating'
category as SI had failed to provide information for monitoring of
the rating as agreed to in its Rating Agreement. SI continues to be
non-cooperative despite repeated requests for submission of
information through e-mails dated November 6, 2024, November 16,
2024, November 26, 2024 and January 8, 2025 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).
The ratings have been revised on account of non-availability of
requisite information. The rating revision also considers ongoing
delays in debt servicing recognised from publicly available
information.
Analytical approach: Standalone
Outlook: Not Applicable
Saify Interiors was established as a partnership firm in 1979 now
being partnered by Mohd. Javed and Mohd. Shakeel Saify. The firm
is engaged in providing interior designing services which involves
furniture and fixture fittings. The firm has also inhouse
manufacturing of furniture items.
SEAJULI DEVELOPERS: CARE Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Seajuli
Developers & Finance Limited (SDFL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 107.00 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 November 3,
2023, placed the rating(s) of SDFL under the 'issuer
non-cooperating' category as SDFL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
SDFL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated September 18, 2024,
September 28, 2024, October 8, 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
SDFL was incorporated in 1987 and is a part of the Kolkata based B.
M. Khaitan Group. The company did not have any major operations
till FY17. Presently, SDFL is engaged in repair and maintenance of
road and other civil work of tea gardens of MRIL.
SHUBH ALUMINUM: CARE Keeps C/A4 Debt Ratings in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Shubh
Aluminium Private Limited (SAPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term/Short- 14.00 CARE C; Stable/CARE A4
term Bank 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 December 18,
2023, placed the rating(s) of SAPL under the 'issuer
non-cooperating' category as SAPL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
SAPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated November 2, 2024,
November 12, 2024 and November 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
Outlook: Stable
Udaipur-based (Rajasthan) Shubh Aluminum Private Limited (SAPL) was
incorporated in 2012 by 'Motawat family' along with Mr. Ashok
Agarwal. SAPL commenced its commercial operation from September,
2015 onwards and is primarily engaged in trading of Iron & Steel,
Aluminium scrap, Polyester Yarn and PET bottles.
Status of non-cooperation with previous CRA: CRSIL has continued
the rating assigned to the bank facilities of SAPL into Issuer Not
Cooperating category vide press release dated April 17, 2024 on
account of its inability to carry out a review in the absence of
requisite information.
SILVER ESTATE: CARE Keeps C Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Silver
Estate Resort (SER) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 4.77 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated December 27,
2023, placed the rating(s) of SER under the 'issuer
non-cooperating' category as SER had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
SER continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated November 11, 2024,
November 21, 2024, December 1, 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
Tikamgarh (Madhya Pradesh) based Silver Estate Resort (SER) was
established as a proprietorship concern in 2014 with an objective
to set up a resort. Till FY17, it runs one restaurant namely Gaurav
Restaurant and from April 2017, it started commercial operations of
its resort. The resort is spread out in the area of 44,000 sq. feet
area having 58 rooms which includes Deluxe AC,
Executive AC and Suite AC. The resort has amenities like restaurant
facilities, conventional hall, Wi-Fi Internet access, laundry/dry
cleaning, parking, gym, spa, swimming pool, Cinema Max etc.
Status of non-cooperation with previous CRA: Brickwork has
continued the rating assigned to the bank facilities of SER into
ISSUER NOT COOPERATING category vide press release dated December
26, 2023 on account of its inability to carry out a review in the
absence of requisite information from the firm.
SONY AIRCON: CARE Keeps C Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sony Aircon
(SA) continues to remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE C; 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 January 4,
2024, placed the rating(s) of SA under the 'issuer non-cooperating'
category as SA had failed to provide information for monitoring of
the rating as agreed to in its Rating Agreement. SA continues to be
non-cooperative despite repeated requests for submission of
information through e-mails dated November 19, 2024, November 29,
2024 and December 9, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
Sony Aircon was established in 1997 as a proprietorship firm by Mr
Anurag Bansal. The firm is an authorised dealer of Daikin
Industries, Ltd.'s Air conditioner and Tanishq Jewellery. The firm
is engaged in trading and retail sale of Tanishq branded gold and
diamond jewellery and Daikin branded electronic items like air
conditioner. The firm currently owns one exclusive retail showroom
for each brand located in Agra, Uttar Pradesh. The showroom also
has attached workshop facility for the post sales services of air
conditioners. The firm sells its products in the domestic market in
the regions of Uttar Pradesh and Uttarakhand.
Status of non-cooperation with previous CRA: BRICKWORK has
continued the ratings assigned to the bank facilities of SA into
'Issuer not-cooperating' category vide press release dated November
14, 2024 on account of non-availability of requisite information
from the company.
SPARTAN ENGINEERING: Ind-Ra Cuts Loan Rating to D
-------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Spartan
Engineering Industries Pvt. Ltd.'s (SEIPL) bank facilities' ratings
to 'IND D (ISSUER NOT COOPERATING)' from 'IND BB+/Stable (ISSUER
NOT COOPERATING)'. The issuer did not participate in the rating
review despite continuous requests and follow-ups by the agency.
Thus, the rating is based on the best available information.
Therefore, investors and other users are advised to take
appropriate caution while using the rating.
The detailed rating actions are:
-- INR250 mil. Fund-based working capital limits (Long-term)
downgraded with IND D (ISSUER NOT COOPERATING) rating;
-- INR20.4 mil. Term loan (Long -term) due on September 30, 2022
downgraded with IND D (ISSUER NOT COOPERATING) rating; and
-- INR120 mil. Non-fund-based working capital limits (Short-term)
downgraded with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
best available information
Detailed Rationale of the Rating Action
The downgrade reflects SEIPL's delays in debt servicing based on
information available in the public domain. However, Ind-Ra has not
been able to ascertain the reason for the delays, as the company
has been non-cooperative. The ratings continue to be maintained in
non-cooperating category in accordance with Ind-Ra's Guidelines on
What Constitutes Non-Cooperation.
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with SEIPL while reviewing the
ratings. Ind-Ra had consistently followed up with SEIPL over
emails, apart from phone calls. The issuer has also not been
submitting their monthly no default statement.
Limitations regarding Information Availability
Ind-Ra is unable to provide an updated forward-looking view on the
credit rating of SEIPL, as the agency does not have adequate
information to review the rating. If an issuer does not provide
timely business and financial updates to the agency, it indicates
weak governance, particularly in 'Transparency of Financial
Information'. The agency may also consider this as symptomatic of a
possible disruption/distress in the issuer's credit profile.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. SEIPL has been
non-cooperative with the agency since February 20, 2020.
About the Company
Incorporated in 1988, Mumbai-based SEIPL is engaged in the
manufacturing and trading of construction equipment and machines.
SREENIDHI RAJA: Ind-Ra Cuts Term Loan Rating to B
-------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Sreenidhi Raja
Packing Solutions Private Limited rating to IND B/Negative (ISSUER
NOT COOPERATING). The issuer did not participate in the
surveillance exercise, despite continuous requests and follow-ups
by the agency through emails and phone calls. Thus, the rating is
based on the best available information. Therefore, investors and
other users are advised to take appropriate caution while using the
rating.
The detailed rating actions are:
-- INR45 mil. Fund Based Working Capital Limit downgraded with
IND B/Negative (ISSUER NOT COOPERATING) rating; and
-- INR18.02 mil. Term loan due on October 31, 2022 downgraded
with IND B/Negative (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Detailed Rationale of the Rating Action
The downgrade is in accordance with Ind-Ra's policy of Guidelines
on What Constitutes Non-Cooperation. As per the policy, ratings of
non-cooperative ratings issuers may get downgraded during
subsequent reviews, if the issuer continues to remain
non-cooperative. With passage of time and absence of updated
information, the risk of sustaining the rating at current levels by
relying on dated information increases, which may be reflected
through a downgrade rating action
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with Sreenidhi Raja Packing
Solutions Private Limited while reviewing the rating. Ind-Ra had
consistently followed up with Sreenidhi Raja Packing Solutions
Private Limited over emails, apart from phone calls.
Limitations regarding Information Availability
Ind-Ra has reviewed the credit ratings of Sreenidhi Raja Packing
Solutions Private Limited on the basis of best available
information and is unable to provide a forward-looking credit view.
Hence, the current outstanding rating might not reflect Sreenidhi
Raja Packing Solutions Private Limited's credit strength. If an
issuer does not provide timely business and financial updates to
the agency, it indicates weak governance, particularly in
'Transparency of Financial Information'. The agency may also
consider this as symptomatic of a possible disruption/distress in
the issuer's credit profile. Therefore, investors and other users
are advised to take appropriate caution while using these ratings.
About the Company
Established in 2011 as a private company, Sreenidhi Raja Packing
Solutions manufactures corrugated boxes, printed cartons, paper
honey comb pads, and multi-color printed boxes at its
manufacturing unit located in Gajulamandyam, Andhra Pradesh.
STAR SCHOOL: Ind-Ra Keeps D Term Loan Rating in NonCooperating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Star School
Samiti's instrument(s) rating in the non-cooperating category. The
issuer did not participate in the surveillance exercise, despite
continuous requests and follow-ups by the agency through emails and
phone calls. Therefore, investors and other users are advised to
take appropriate caution while using the rating. The rating will
continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.
The detailed rating actions are:
-- INR20 mil. Fund Based Working Capital Limit maintained in non-
cooperating category with IND D (ISSUER NOT COOPERATING)
rating; and
-- INR89.5 mil. Term loan due on December 31, 2021 maintained in
non-cooperating category with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
The ratings are maintained in the non-cooperating category in
accordance with Ind-Ra's policy of Issuer Non-Cooperation.
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with Star School Samiti while
reviewing the rating. Ind-Ra had consistently followed up with Star
School Samiti over emails, apart from phone calls.
Ind-Ra has reviewed the credit ratings of Star School Samiti on the
basis of best available information and is unable to provide a
forward-looking credit view. Hence, the current outstanding rating
might not reflect Star School Samiti's credit strength. If an
issuer does not provide timely business and financial updates to
the agency, it indicates weak governance, particularly in
'Transparency of Financial Information'. The agency may also
consider this as symptomatic of a possible disruption / distress in
the issuer's credit profile. Therefore, investors and other users
are advised to take appropriate caution while using these ratings.
About the Company
Star School Samiti was established in 1980 to provide technical and
allied education services. It manages two institutes (Shiv Kumar
Singh Institute of Technology and Science and Shiv Kumar Singh
College of Professional Studies) and two schools (SKS International
School and Star Public School) in Indore.
UEE ELECTRICAL: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: UEE Electrical Engineers Private Limited
Regd Office:
43, 3rd Floor, GB Road, Delhi-110 006
Corporate Office:
418, Tower 2, DLF Corporate Greens Sector,
74A, Gurgaon-122004 (Haryana)
Insolvency Commencement Date: December 20, 2024
Estimated date of closure of
insolvency resolution process: April 23, 2025
Court: National Company Law Tribunal, New Delhi Bench
Insolvency
Professional: Vivek Sharma
House No. 449, Jheel Khuranja
P.O. Krishna Nagar, Delhi-110051
Email: fcsviveksharma@gmail.com
-- and --
A-250, LGF, Defence Colony
New Delhi-110024
Email: cirp.uee@gmail.com
Last date for
submission of claims: January 5, 2025
UNDERWATER SERVICES: CARE Cuts Rating on INR49cr LT Loan to D
-------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Underwater Services Company Limited (USCL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 49.00 CARE D; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Downgraded from
CARE C; Stable
Rationale and key rating drivers
CARE had, vide its press release dated April 6, 2018, placed the
rating of USCL under the 'issuer non-cooperating' category as USCL
had failed to provide information for monitoring of the rating.
USCL continues to be non-cooperative despite repeated requests for
submission of information through e-mail dated January 7, 2025.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating. The rating has been revised on account of delays in debt
servicing. The rating on Underwater Services Company Limited's Bank
facilities will be denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating. The ratings have been revised on account of
non-availability of substantial information from the company and
delays in debt servicing.
Analytical approach: Standalone
Detailed description of the key rating drivers
At the time of last rating on October 16, 2023, the following were
the rating strengths and weaknesses.
Key weaknesses
* Ongoing delays in servicing of debt: The rating has been revised
on account of the ongoing delays in debt servicing of the company.
As per banker interaction dated January 07, 2025, there have been
delays in the repayment of both term loans and Cash Credit. The
overdrawals in Cash Credit account sometimes exceeded 30 days. The
interest on Term Loan is not yet been paid for the month of
November 2024 & December 2024 as confirmed by the bank.
Underwater Services Company Ltd. (USCL) is a wholly owned
subsidiary of Samson Maritime Ltd. (SML). The company was
originally a partnership firm formed in 1970 as the first
commercial diving company in India. Initially, the company provided
hull cleaning, hull inspection plus underwater repairs to merchant
shipping vessels. Later, the company expanded into Single Point
Mooring (SPM) maintenance, offshore diving including saturation and
mixed gas, plus salvage and wreck removal, becoming the first
Indian member of the International Salvage Union. USCL is engaged
in providing services for operations and maintenance of SPM
terminals and diving projects. As per the last available data with
CARE, USCL maintained 11 out of the total 15 outsourced operational
SPM installations in the country. The fleet profile of SML includes
5 PSVs (Platform Supply Vessels), 8 SPM maintenance vessels (6
deployed to its subsidiary – USCL) and the remaining
tugs/support/utility vessels.
UNITED STEEL: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: United Steel Building Systems Private Limited
New No. 4, (Old No.9) Flat No. A,
Big Street Kilpauk Garden Colony,
Kilpauk Chennai, Tamil Nadu - 600010
Insolvency Commencement Date: December 18, 2024
Estimated date of closure of
insolvency resolution process: June 16, 2025
Court: National Company Law Tribunal, Chennai Bench-I
Insolvency
Professional: Ramela Rangasamy
A6, Aryaa Harmony Apartment
Police Kandasamy Street,
Olympus, Ramanathapuram,
Coimbatore, Tamil Nadu -641045
Email: rum_jai@yahoo.com
AAA House, 64, Okhla Industrial Estate,
Okhla Phase III, Near Modi Mill,
New Delhi-110020
Email: unitedsteelbuilding.ibc@gmail.com
Last date for
submission of claims: January 4, 2025
UNIVERSAL EDUCATIONAL: Ind-Ra Keeps C Rating in NonCooperating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Universal
Educational Society's instrument(s) rating in the non-cooperating
category. The issuer did not participate in the surveillance
exercise, despite continuous requests and follow-ups by the agency
through emails and phone calls. Therefore, investors and other
users are advised to take appropriate caution while using the
rating. The rating will continue to appear as 'IND C (ISSUER NOT
COOPERATING)' on the agency's website.
The detailed rating actions are:
-- INR35 mil. Bank Overdraft maintained in non-cooperating
category with IND C (ISSUER NOT COOPERATING) rating; and
-- INR335.53 mil. Term loan due on June 30, 2027 maintained in
non-cooperating category with IND C (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
The ratings are maintained in the non-cooperating category in
accordance with Ind-Ra's policy of Issuer Non-Cooperation.
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with Universal Educational
Society while reviewing the rating. Ind-Ra had consistently
followed up with Universal Educational Society over emails, apart
from phone calls.
Ind-Ra has reviewed the credit ratings of Universal Educational
Society on the basis of best available information and is unable to
provide a forward-looking credit view. Hence, the current
outstanding rating might not reflect Universal Educational
Society's credit strength. If an issuer does not provide timely
business and financial updates to the agency, it indicates weak
governance, particularly in 'Transparency of Financial
Information'. The agency may also consider this as symptomatic of a
possible disruption/distress in the issuer's credit profile.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings.
About the Company
Incorporated in 2008, Universal Educational Society manages and
operates the Universal group of institutes in Mohali District,
Punjab.
UTOPIAN SUGARS: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Utopian
Sugars Limited (USL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 136.00 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 December 28,
2023, placed the rating(s) of USL under the 'issuer
non-cooperating' category as USL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
USL continues to be non-cooperative despite repeated requests for
submission of information through emails dated November 12, 2024,
November 22, 2024 and December 2, 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
USL was incorporated in March, 2010 as a closely held limited
company to undertake manufacturing of sugar and sugar related
products at Taluka Mangalwedha in Solapur, Maharashtra. USL is
promoted by Mr. Umesh P. Paricharak as Chairman and his brother Mr.
Uttam V. Patil as Managing Director (MD) having industry experience
of over two decades.
Status of non-cooperation with previous CRA: CRISIL has continued
the rating assigned to the bank facilities of USL under Issuer Not
Cooperating category vide press release dated September 23, 2024 on
account of its inability to carry out a review in the absence of
the requisite information from the company.
VIJAYA HOSPITAL: Ind-Ra Cuts Term Loan Rating to BB-
----------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Vijaya Hospital
rating to IND BB-/Negative (ISSUER NOT COOPERATING). The issuer did
not participate in the surveillance exercise, despite continuous
requests and follow-ups by the agency through emails and phone
calls. Thus, the rating is based on the best available information.
Therefore, investors and other users are advised to take
appropriate caution while using the rating.
The detailed rating actions are:
-- INR20 mil. Fund Based Working Capital Limit downgraded with
IND BB-/Negative (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT
COOPERATING) rating; and
-- INR271.64 mil. Term Loan due on March 31, 2031 downgraded with
IND BB-/Negative (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Detailed Rationale of the Rating Action
The downgrade is in accordance with Ind-Ra's policy of Guidelines
on What Constitutes Non-Cooperation. As per the policy, ratings of
non-cooperative ratings issuers may get downgraded during
subsequent reviews, if the issuer continues to remain
non-cooperative. With passage of time and absence of updated
information, the risk of sustaining the rating at current levels by
relying on dated information increases, which may be reflected
through a downgrade rating action
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with Vijaya Hospital while
reviewing the rating. Ind-Ra had consistently followed up with
Vijaya Hospital over emails, apart from phone calls.
Limitations regarding Information Availability
Ind-Ra has reviewed the credit ratings of Vijaya Hospital on the
basis of best available information and is unable to provide a
forward-looking credit view. Hence, the current outstanding rating
might not reflect Vijaya Hospital's credit strength. If an issuer
does not provide timely business and financial updates to the
agency, it indicates weak governance, particularly in 'Transparency
of Financial Information'. The agency may also consider this as
symptomatic of a possible disruption / distress in the issuer's
credit profile. Therefore, investors and other users are advised to
take appropriate caution while using these ratings.
About the Company
Vijaya Hospital was established in Kottarakara on May 8, 1998. It
runs a hospital with a total capacity of 300 beds. Dr. VS Rajeev
and Dr. AK Mini Rajeev are 50:50 partners.
WISDOM FOUNDATION: CARE Hikes Rating on INR11.63cr LT Loan to B+
----------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Wisdom Foundation (WF), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term 11.63 CARE B+; Stable Upgraded from
bank facilities CARE D; Stable outlook assigned
Rationale and key rating drivers
The revision in the rating assigned to the bank facilities of WF is
on account of regular debt servicing for more than 90 days as
confirmed by the lender.
The rating continues to be constrained by its small scale of
operations with low net worth base in FY24 (refers to the period
April 1 to March 31), limited outreach on account of operations
from a single campus, highly regulated education sector in India
and leveraged capital structure and debt protection metrics.
However, the aforesaid constraints are partially offset by its
experienced management even though they are venturing into a new
business segment, association of the school with the brand name of
Delhi Public School (DPS) and modern campus infrastructure.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Gradual increase in enrolments above 50% with increase in TOI
over INR7 crore and trust continuing to earn cash profit.
* Improvement in overall gearing below 4x on a sustained basis.
Negative factors
* Decline in operating income below INR4 crore due to low
enrolments on a sustained basis.
* Increase in debt levels leading to overall gearing of more than
8x on a sustained basis.
Analytical approach: Standalone
Outlook: Stable
Stable outlook reflects that the entity will be able to scale up
its business with improvement in its enrolment in medium term.
Detailed description of key rating drivers:
Key weaknesses
* Small scale of operations with low net worth base: The trust
generated revenue of INR5.65 crore in FY24 witnessing a growth of
51% y-o-y compared to FY23. Despite this growth, the scale of
operations remains small as it is only the second year of
operations. Further, the corpus of the trust stands low at INR2.57
crore as on March 31, 2024, on account of losses incurred in its
initial phases. The SBILDT margin for the trust has improved from
15.37% in FY23 to 28.60% in FY24. The same is expected to improve
to around 35%-40% in the years to come.
* Limited outreach on account of operations from a single campus:
WF operates only one school by the name of 'Delhi Public School,
Tezpur' in Tezpur, Assam, and hence, the entire revenue of the
trust is dependent upon one campus operation. The single campus and
regional footprint limit the reach and penetration levels for the
trust to tap growth opportunities.
* Highly regulated education sector in India: The subject of
'Education' in India is placed in the concurrent list of the
constitution and thus comes under the purview of both
the Central as well as the State Governments. The sector is
regulated by the Ministry of Human Resources, at the national
level, and by the education ministries in each state, as well as by
the Central bodies like University Grant Commission (UGC) and 14
other professional councils. The operating and financial
flexibility of the higher education sector are limited, as
regulations govern almost all aspects of operations, including fee
structure, number of seats, changes in curriculum and
infrastructure requirements. Despite the increasing trend of
privatization of education sector in India, regulatory challenges
continue to pose a significant threat to the educational
institutes. Affiliation to an educational board is a vital part of
any school's operations and WF has affiliated with CBSE since
February 2024.
* Leveraged capital structure and debt protection metrics: The
capital structure is leveraged marked by high overall gearing ratio
of 5.62x as on March 31, 2024, vis-à-vis 2.92x as on March
31, 2023. This is on account of increase in term loan along with
reduction in corpus fund due to losses incurred. Interest coverage
ratio witnessed improvement from 0.46x in FY23 to 1.10x in FY24 on
account of increase in absolute SBILDT levels. With the trust
earning GCA of INR0.58 crore in FY24 as against cash loss of
INR0.28 crore in FY23, TDGCA stood high at 24.82x as on
March 31, 2024.
Key strengths
* Experienced management though venturing into a new business
segment: The president of the trust, Govind Khaitan, is a renowned
businessman having business experience of more than 22 years in the
field of construction under the name of M/s M. P. Khaitan. He is a
director in entities which are engaged in construction and sale of
commercial and residential buildings. He is also engaged in other
businesses like manufacturing of pet preforms and packaged drinking
water. The secretary of the trust, Jitendra Agarwal, is engaged in
the trading business of hardware goods, building construction
material and has business experience of more than 20 years. Mr.
Khaitan and Mr. Agarwal are also partners in an upcoming hotel in
Tezpur, Assam, in the name of Imperial Hotels and Resorts. Apart
from the trustees mentioned above, Jitendra Sharma, Rajender
Sharma, Rakesh Agarwal and Sanjay Khaitan are also an integral part
of the foundation and have extensive
business experience in their respective business fields.
* Association of the school with the brand name of DPS: WF has tied
up with the reputed DPS group. DPS has agreed to lend its name to
the school set up by WF against an annual royalty fee. Further, WF
can also use the expertise and assistance of DPS whenever required
since DPS has a long and satisfactory track record with regards to
operating and maintaining schools. The brand name of DPS will also
help in the publicity of school, potentially leading to increased
enrolments of students.
* Modern campus infrastructure: DPS, Tezpur, is spread across an
area of 4.90 acres approximately. The school has modern
infrastructure in place including sports, library, transport,
canteen, and health facilities. The campus features well equipped
classrooms, laboratories, computer centres, Wi-Fi internet
facility, and other resources. The school gives emphasis on extra
co-curricular activities in different fields and has facilities
such as football, cricket grounds and athletic track, along with a
basketball court. Further, the school also has facilities of online
teaching for the students in the event of lockdown or other
unforeseen circumstances.
Liquidity: Stretched
The liquidity of the trust is marked stretched on account of
tightly matched accruals against debt repayment obligations. In
FY24, the trust earned GCA of INR0.58 crore against debt repayment
obligation of INR0.49 crore. In FY25, the trust has debt repayment
obligation of INR0.87 crore against which it is expected to
generate sufficient cash accruals.
WF was established in the year 2015 as a public charitable trust
for setting up of an educational institution in Assam. For this, WF
has tied up with DPS, to lends its brand name in exchange for a
fixed consideration. The school has commenced operations from April
2022 and is spread across 4.90 acres of land in Borjhargaon, Assam,
6 km away from the city of Tezpur. The day-to-day functioning of
the school is being handled by Mr. Dhanveer Singh Arora who is the
principal of the school and has over two decades of experience in
the educational sector. The managing committee and trustees of WF
comprise of Govind Khaitan, Jatinder Sharma, Rajender Sharma,
Jitendra Agarwal, Rakesh Agarwal and Sanjay Khaitan. The trustees
are experienced and have a long track record of handling various
businesses such as construction, warehousing, logistics,
manufacturing of beverages and trading of hardware items.
=========
J A P A N
=========
NISSAN MOTOR: S&P Alters Outlook to Negative, Affirms 'BB+/B' ICR
-----------------------------------------------------------------
S&P Global Ratings revised to negative from stable its outlook on
Nissan Motor Co. Ltd. and affirmed its 'BB+' long-term rating and
'B' short-term rating on the company.
The negative outlook reflects S&P's view that the company's
creditworthiness will continue to deteriorate if profitability does
not improve and positive free cash flow is not secured in a
challenging business environment.
S&P said, "A significant improvement in performance for Nissan
Motor will more likely take longer than we had assumed. The company
has significantly increased sales incentives to try and correct
persistently high inventory levels. A slowdown in car sales in its
main market, North America, is behind this. Nissan Motor, unlike
Japanese automakers such as Toyota Motor Corp. and Honda Motor Co.
Ltd., doesn't sell hybrid vehicles in the U.S. It therefore hasn't
benefited from increased demand for such vehicles there. We also
expect the company's sales to continue to decline in China. This is
because, despite continued expansion of the electric vehicle (EV)
market, Nissan Motor has a limited lineup of such vehicles. Nissan
Motor's plan to cut production capacity and staff costs will also
be a drag on its earnings in the short term.
"Pressure on Nissan Motor's financial position will increase if
performance does not recover quickly. A healthy financial position
is a factor that continues to underpin our credit rating on the
company. Now, however, we see less financial buffer than the
company had before. Net cash in the automotive sector declined to
over ¥1.3 trillion at the end of September 2024 from over ¥1.5
trillion at the end of March 2024. The company's free cash flow
from its automotive division fell sharply into negative territory
as earnings plummeted and investments increased. In the
April-September period of 2024, the company's negative free cash
flow was more than ¥440 billion. In the automobile industry,
investments for next-generation technology and environmental
regulations continue to increase. There could also be additional
financial burden if Nissan Motor invests in a new EV company
established by Renault or repurchases Nissan Motor shares that
Renault has placed in a trust company.
"The company's net cash position and efforts to improve performance
led us to affirm our ratings. The company has more than ¥1.3
trillion on hand. We also expect business reforms to bear fruit. We
expect the company to improve its business performance by reducing
inventory and costs as soon as possible while limiting the decline
in unit sales. In addition, we anticipate positive free cash flow
in the automobile segment soon, which would allow the company to
maintain a healthy net cash financial position."
The business environment is more challenging than ever. Automakers
now face increasing pressure to introduce products specific to
individual regions. Progress on electrification, environmental
regulations, and consumer preferences vary widely from region to
region. Nissan Motor may not be able to devote the resources
required to develop new products if performance remains in the
doldrums. The company plans to launch hybrid vehicles in the U.S.
and to expand its EV product lineup in China. Nissan Motor's sales
regions are geographically dispersed, particularly in North America
and China. S&P said, "We have viewed this as a strength in business
compared with similarly rated Renault. However, continued sluggish
sales in North America and China mean this geographic
diversification will not support earnings for now. We also see
other risk factors that could weigh on Nissan Motor's performance.
These include increasing pressure on prices as global demand grows
only moderately, continued intense competition in China, stricter
emission regulations especially in Europe, and the risk of higher
import tariffs in the U.S."
S&P said, "Our ratings and outlook on Nissan Motor do not reflect
the potential impact a business integration with Honda Motor would
have. The two companies announced on Dec. 23, 2024, that they would
hold talks on business integration. This would have a positive
impact on Nissan Motor's creditworthiness if realized. While Nissan
Motor's performance has deteriorated significantly, Honda Motor's
performance has remained stable, supported by strong hybrid car
sales and the world's leading motorcycle business. We estimate the
consolidated EBITDA margin would increase to 6%-7% in fiscal 2024
(ending March 31, 2025) if the companies merged. In terms of
financial soundness, we expect Honda to maintain a net cash
position more than double that of Nissan Motor's. This would likely
increase the consolidated financial base if business integration
takes place.
"The negative outlook reflects our view that the company's
creditworthiness will deteriorate if profitability is slow to
improve and free cash flow does not turn positive sustainably in a
challenging business environment.
"In the next three to six months, we would consider a downgrade if
any of the following scenarios become more likely."
Free operating cash flow will remain negative or profitability
shows little prospect of converging toward the level of peers with
similar ratings. This scenario could become more likely if: 1)
There is a larger than expected decline in auto sales, 2) Sales
incentives remain high due to a lack of product competitiveness, 3)
Cost reduction measures are not implemented quickly, or 4) Earnings
decline due to an increase in U.S. import tariffs or foreign
exchange rates.
The company's finances and funding deteriorate because of further
declines in its net cash position in the auto business and a rise
in funding costs.
The company's competitiveness and market position in key markets
such as North America and China further decline.
S&P would consider revising the outlook up if it comes to believe
that prospects for profitability in the auto business improve
significantly and it becomes more likely that Nissan Motor can
maintain positive free cash flow sustainably in the auto sector.
[*] JAPAN: Corporate Bankruptcies Exceed 10,000 in 2024
-------------------------------------------------------
Kyodo News reports that the number of corporate bankruptcies in
Japan exceeded 10,000 for the first time in 11 years in 2024 as
businesses faced a worsening labour shortage and higher prices of
imported supplies due to the yen's depreciation, a survey by a
credit research company showed Jan. 14.
Small and medium-sized enterprises (SMEs) were hit hard, with the
end of special tax deferral measures introduced during the
coronavirus 2019 (Covid-19) pandemic causing an additional
financial burden, according to Tokyo Shoko Research.
Bankruptcies rose 15.1% from the previous year to 10,006, marking
the third consecutive year of increases, Kyodo discloses. Of these,
10,004 were SMEs. Total liabilities were JPY2.34 trillion, down
2.4% from 2023.
According to the report, the yen plunged to its weakest level in 37
years against the United States dollar in the summer of 2024,
driving up import costs for businesses. A worsening labour
shortage, fuelled by Japan's aging population and the introduction
of stricter overtime regulations, further strained industries such
as construction and services.
By industry, the services sector, including restaurants, saw the
highest number of bankruptcies at 3,329 cases, a 13.2% increase,
surpassing 3,000 for the first time since 1990, Kyodo relays. A
research firm recently reported that a record number of ramen
noodle eatery operators in Japan went out of business last year.
The construction sector, one of the industries hit hardest by the
work hour reform, followed with 1,924 cases, up 13.6%.
Bankruptcies attributable to labour shortages sharply rose to a
record 289 cases from 159, while those resulting from the inability
to find someone to take over a business totalled 462 cases, also a
record, according to Kyodo.
Kyodo adds that the number of bankruptcies due to financial burden
caused by social security costs and taxes nearly doubled to 176
cases from 92.
Although some businesses avoided bankruptcy by loan refinancing,
they may continue to struggle if they cannot turn their businesses
around, Tokyo Shoko Research said.
=====================
N E W Z E A L A N D
=====================
FULCRUM SCAFFOLDING: Creditors' Proofs of Debt Due on Feb. 15
-------------------------------------------------------------
Creditors of Fulcrum Scaffolding Limited and PNB Limited are
required to file their proofs of debt by Feb. 15, 2025, to be
included in the company's dividend distribution.
Fulcrum Scaffolding Limited commenced wind-up proceedings on Dec.
18, 2024.
PNB Limited commenced wind-up proceedings on Dec. 19, 2024.
The company's liquidators are:
Adam Botterill
Damien Grant
Waterstone Insolvency
PO Box 352
Auckland 1140
J & P DRAINAGE: Court to Hear Wind-Up Petition on March 14
----------------------------------------------------------
A petition to wind up the operations of J & P Drainage Contractors
Limited will be heard before the High Court at Auckland on March
14, 2025, at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Dec. 5, 2024.
The Petitioner's solicitor is:
Hosanna Tanielu
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
JNJ INTERNATIONAL: Owe Creditors More Than NZD2.5 Million
---------------------------------------------------------
Tony Wall at Stuff.co.nz reports that failed companies behind
controversial house building business JNJ Homes owe creditors more
than NZD2.5 million, but there are virtually no funds available to
pay them, a liquidator's reports reveal.
As reported by Stuff, JNJ International Investments, JNJ
Construction and JLF Unlimited were voluntarily put into
liquidation before Christmas by director and shareholder Zuyu Huo,
also known as Jackie Huo.
JNJ Homes is a trading name only.
Stuff revealed how tradies across Christchurch, as well as property
owners with unfinished homes, were chasing the business for
payment, even turning up at Huo's house.
Stuff also revealed how, in at least two cases, it allegedly took
payment for foundations it said it was about to pour, but never
did.
According to Stuff, Brenton Hunt of Insolvency Matters has now
released his first reports into the three associated companies.
The report into the main company, JNJ International Investments,
shows that unsecured creditors are claiming NZD1.3 million. More
than 80 claims have been lodged, including by dozens of
Christchurch tradies.
On top of that, the report said, the company owes NZD120,000 in
wages and holiday pay and NZD540,000 to IRD, Stuff relays.
Only NZD50,000 was available for preferential creditors, making a
total estimated shortfall of NZD1.89 million.
Stuff relates that the report said the director [Huo] had advised
that the insolvency of the company came about "due to [a] downturn
in economic conditions" and one supplier had "with little notice,
changed the payments terms".
The report on JNJ Construction, which provided construction project
management services in the Auckland region, focusing on insurance
projects, shows a shortfall to creditors of NZD745,000, while the
shortfall to creditors of JLF Unlimited is NZD50,000.
Across the three companies, the total estimated shortfall is
NZD2.685 million, Stuff discloses.
On all three reports, a note by Mr. Hunt said: "It is . . . not
possible to provide a definitive statement as to whether sufficient
assets will be realised for the purposes of making payment to any
class of creditor . . . but it is looking unlikely."
Stuff adds Mr. Hunt said in his notes he would be investigating the
date the companies became insolvent, pre-liquidation transactions
and operations and whether the directors breached the Companies
Act.
RIPE FOOD: Creditors' Proofs of Debt Due on Feb. 15
---------------------------------------------------
Creditors of Ripe Food Limited are required to file their proofs of
debt by Feb. 15, 2025, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Jan. 8, 2025.
The company's liquidator is:
Geoff Falloon
Biz Rescue Limited
PO Box 27
Nelson 7040
TAZ DRAINAGE: Court to Hear Wind-Up Petition on March 14
--------------------------------------------------------
A petition to wind up the operations of Taz Drainage and Civil
Limited will be heard before the High Court at Auckland on March
14, 2025, at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Dec. 5, 2024.
The Petitioner's solicitor is:
Hosanna Tanielu
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
TRAFFIC DIRECT: Creditors' Proofs of Debt Due on Jan. 20
--------------------------------------------------------
Creditors of Traffic Direct NZ Limited are required to file their
proofs of debt by Jan. 20, 2025, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Dec. 19, 2024.
The company's liquidators are:
Adam Botterill
Damien Grant
Waterstone Insolvency
PO Box 352
Auckland 1140
=================
S I N G A P O R E
=================
BOLDTEK HOLDINGS: Creditors' Meeting Set for Jan. 23
----------------------------------------------------
TipRanks reports that Boldtek Holdings Limited, currently in
compulsory liquidation, has announced a creditors' meeting set for
January 23, 2025, to discuss key issues such as the sale of its
shares in NNB Global Development Pte Ltd and the appointment of a
Committee of Inspection. The meeting will also address the opening
of an authorized bank account.
TipRanks says the company has been under trading suspension since
January 2023, and stakeholders are advised to stay informed through
official announcements.
Boldtek Holdings Limited (SGX:5VI) provides building construction
services. The Company offers excavation, piling, superstructure
works, aluminum cladding, curtain walling, interior fitting-out and
decoration, and landscaping services. Boldtek Holdings serves
customers in Singapore.
EJOINT PTE: Court Enters Wind-Up Order
--------------------------------------
The High Court of Singapore entered an order on Jan. 3, 2025, to
wind up the operations of Ejoint Pte. Ltd.
Maybank Singapore Limited 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
ELEMENT DYNAMICS: Creditors' Proofs of Debt Due on Feb. 13
----------------------------------------------------------
Creditors of Element Dynamics Pte. Ltd. are required to file their
proofs of debt by Feb. 13, 2025, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Jan. 13, 2025.
The company's liquidator is:
Mr. Lee Chi Him
Pinebridge Advisory
10 Ubi Crescent
#06-18 Ubi Techpark
Singapore 408564
FUSING INTERNATIONAL: Creditors' Proofs of Debt Due on Feb. 10
--------------------------------------------------------------
Creditors of Fusing International Inc. Pte. Ltd. are required to
file their proofs of debt by Feb. 10, 2025, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Jan. 6, 2025.
The company's liquidator is:
Wee Phui Gam
c/o 111 Somerset Road #13-33
Singapore 238164
JUBILEE FOODSTUFF: Court to Hear Wind-Up Petition on Jan. 31
------------------------------------------------------------
A petition to wind up the operations of Jubilee Foodstuff Pte. Ltd.
will be heard before the High Court of Singapore on Jan. 31, 2025,
at 10:00 a.m.
Maybank Singapore Limited filed the petition against the company on
Jan. 6, 2025.
The Petitioner's solicitors are:
Adsan Law LLC
300 Beach Road
#26-00 The Concourse
Singapore 199555
VMS ADVANCE: Court to Hear Wind-Up Petition on Jan. 31
------------------------------------------------------
A petition to wind up the operations of VMS Advance Pte. Ltd. will
be heard before the High Court of Singapore on Jan. 31, 2025, at
10:00 a.m.
Maybank Singapore Limited filed the petition against the company on
Jan. 6, 2025.
The Petitioner's solicitors are:
Adsan Law LLC
300 Beach Road
#26-00 The Concourse
Singapore 199555
===========
T A I W A N
===========
NANYA TECHNOLOGY: Posts 9th Consecutive Quarter of Losses
---------------------------------------------------------
The Taipei Times reports that Nanya Technology Corp on Jan. 13
posted its ninth consecutive quarter of losses, but the world's No.
4 DRAM chipmaker said it expects a pickup in demand next quarter
for standard DRAM chips used in smartphones and consumer
electronics.
The Taipei Times relates that the company said it has seen signs of
a nascent recovery, after China introduced several economic
stimulus packages to encourage consumer spending.
Major industry players, led by Samsung Electronics Co, also
continue to reduce inventory, leading to better supply-demand
dynamics, it said.
"We are expecting DRAM chips used in consumer electronics to be out
of the woods in the second quarter and move toward a positive
direction," Taipei Times quotes Nanya president Lee Pei-ing as
saying at an online news briefing.
"The inventory of [memory chips for] smartphones is returning to a
normal level in China. That will pave the way for an improvement in
the supply-demand situation in the first half," Mr. Lee said,
adding that the firm expects a noticeable improvement in its bottom
line in the final quarter of this year.
The company added that it is racing to produce more DDR5 DRAM chips
to inject new growth. DDR5 chips, used mainly in computers and
servers, enjoy a significant price premium compared with DDR4
chips.
"Nanya Technology will mainly rely on the new products -- DDR5,
DDR4 made on new, advanced technology, low-power DDR4 and low-power
DDR5 memory chips -- for bottom-line improvement, and there is a
chance to see a marked improvement in the fourth quarter," Mr. Lee
said.
The company aims to boost the contribution of DDR5 chips to about
20 percent of overall DRAM production in the first half of this
year.
For the full year, DDR5 chips are to account for 30 percent of its
total production, Mr. Lee said.
According to the Taipei Times, the company has also partnered with
Piecemakers Technology Inc to develop high-bandwidth memory chips
used in artificial intelligence-powered edge devices, Mr. Lee said,
adding that it expects to ship its first high-bandwidth DRAM chips
by the end of next year.
Nanya Technology last month announced that it would acquire up to
38 percent of Piecemakers' shares for a maximum of NT$660 million
(US$19.93 million), and spend NT$20 billion on new facilities and
equipment this year, up from NT$16 billion last year.
The company's net losses widened from NT$1.49 billion the previous
quarter to NT$1.57 billion in the December quarter, amid sluggish
demand and lower average selling prices, the Taipei Times
discloses.
On an annual basis, net losses improved from NT$2.48 billion.
Shipments last quarter sank 7 to 9 percent sequentially, or 31 to
33 percent annually, while selling prices dipped about 11 to 13
percent quarterly, but rose 11 to 13 percent annually, the company
said.
As a whole, losses last year narrowed from NT$7.44 billion in 2023
to NT$5.08 billion, the company said, adds the Taipei Times.
About Nanya Technology
Based in Taiwan, Nanya Technology Corp. (TPE:2408) --
http://www.nanya.com/-- is principally engaged in the manufacture,
development and sale of memory products. The company primarily
offers dynamic random access memory (DRAM) chips, including double
data rate (DDR) DRAM chips, DDR2 DRAM chips and DDR3 DRAM chips;
DRAM modules, such as 200-pin DDR small outline (SO) dual in-line
memory modules (DIMMs), 184-pin registered and unbuffered DDR
synchronous dynamic random access memory (SDRAM) DIMMs, 200-pin
DDR2 SODIMMs, 240-pin unbuffered and registered DDR2 SDRAM DIMMs
and others. DRAMs are used as data storage units for computer,
communications and consumer (3C) products.
*********
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 2025. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
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