/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/201216.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 Wednesday, December 16, 2020, Vol. 23, No. 251 Headlines A U S T R A L I A ASPEC MASONRY: First Creditors' Meeting Set for Dec. 23 CACAO CAFE: Second Creditors' Meeting Set for Dec. 22 DJM CONCRETE: First Creditors' Meeting Set for Dec. 23 FURNISHING ACCESSORIES: Second Creditors' Meeting Set for Dec. 23 ICRA ROLLESTON: First Creditors' Meeting Set for Dec. 21 NHGM SERVICES: First Creditors' Meeting Set for Dec. 23 C H I N A SHANDONG RUYI: Defaults on US$153 Million Bond [*] CHINA: Financially Troubled Companies Face Bourse Cull I N D I A AGRIMAS CHEMICALS: CARE Keeps D Debt Ratings in Not Cooperating ANUGRAH STOCK: CARE Lowers Rating on INR20cr Bank Loan to D ARCOTECH LIMITED: CARE Keeps D Debt Ratings in Not Cooperating BALRAM COTEX: CARE Withdraws B+ Rating on Bank Facilities BRAHMA TEJA: CARE Keeps D Debt Ratings in Not Cooperating CHANDRA BHAGAT: CARE Lowers Rating on INR22cr LT Loan to D COFFEE DAY: CARE Migrates D Debt Rating to Not Cooperating COROMANDEL AGRICO: CARE Keeps D Debt Ratings in Not Cooperating GANAPATI BUILDERS: CARE Lowers Rating on INR8cr LT Loan to C GSR AND KKR EDUCATIONAL: CARE Cuts Rating on INR13.73cr Loan to D GSR ECO BRICKS: CARE Migrates D Debt Rating to Not Cooperating HIPAD TECHNOLOGY: Insolvency Resolution Process Case Summary JAGADEESH AND SHASHIREKHA: CARE Moves D Rating to Not Cooperating JAYAWANTI BABU: CARE Keeps D Debt Ratings in Not Cooperating JOYTARA RICE: CARE Lowers Rating on INR9.83cr LT Loan to B- KHWAHISH MARKETING: CARE Keeps D Debt Ratings in Not Cooperating KISH EXPORTS: CARE Reaffirms B+ Rating on INR11cr LT Loan MCNALLY BHARAT: CARE Keeps D on INR43.5cr Loans in Not Cooperating METROPOLE VINIMAY: CARE Lowers Rating on INR26.50cr LT Loan to B+ NAKODA TECHNOFIBE: CARE Migrates D Debt Rating to Not Cooperating OMID ENGINEERING: CARE Keeps D on INR14cr Loans in Not Cooperating OMKARA POLYPLAST: CARE Keeps D Debt Ratings in Not Cooperating P.M.P. TEXTILES: CARE Keeps D Debt Ratings in Not Cooperating PARAMOUNT STEELS: CARE Moves D Debt Rating to Not Cooperating PURVANCHAL AGRICO: CARE Lowers Rating on INR7cr LT Loan to B RELIANCE INFRA: CARE Reaffirms D Rating on INR1654.38cr Loan RMJ MODERN: CARE Lowers Rating on INR11.89cr LT Loan to B- RUKSON PACKAGING: CARE Lowers Rating on INR12.10cr Loan to B SHIVANSH DIAMOND: CARE Keeps D Debt Rating in Not Cooperating STB EXPORT PVT: Insolvency Resolution Process Case Summary SWASTIK CEMENT: CARE Lowers Rating on INR7cr LT Loan to C VRC SHORELINE: Insolvency Resolution Process Case Summary [*] INDIA: IBA Seeks Relaxations in Debt Restructuring Scheme M A L A Y S I A AIRASIA GROUP: Unit to Raise US$123MM in Rights Issue, New Shares S I N G A P O R E HIN LEONG: Lim Family, BP Sued for $313 Million on Oil Deals HYFLUX LTD: JMs in Talks With 14 New Potential Investors - - - - - ================= A U S T R A L I A ================= ASPEC MASONRY: First Creditors' Meeting Set for Dec. 23 ------------------------------------------------------- A first meeting of the creditors in the proceedings of Aspec Masonry NSW Pty Ltd will be held on Dec. 23, 2020, at 9:00 a.m. via virtual meeting. Bruce Gleeson and Daniel Robert Soire of Jones Partners were appointed as administrators of Aspec Masonry on Dec. 15, 2020. CACAO CAFE: Second Creditors' Meeting Set for Dec. 22 ----------------------------------------------------- A second meeting of creditors in the proceedings of Cacao Cafe Potts Point Pty Ltd has been set for Dec. 22, 2020, at 11:00 a.m. at the offices of Joubert Rubinstein, Level 2, 410 Elizabeth Street, Surry Hills NSW 2010 via video conference. 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 Dec. 21, 2020, at 5:00 p.m. Scott Turner of Joubert Rubinstein was appointed as administrator of Cacao Cafe on Nov. 17, 2020. DJM CONCRETE: First Creditors' Meeting Set for Dec. 23 ------------------------------------------------------ A first meeting of the creditors in the proceedings of DJM Concrete Constructions Pty Ltd will be held on Dec. 23, 2020, at 2:00 p.m. at the offices of Hamilton Murphy Advisory Pty Ltd Level 1, 255 Mary Street, in Richmond, Victoria. Stephen Robert Dixon and Leigh William Dudman of Hamilton Murphy were appointed as administrators of DJM Concrete on Dec. 15, 2020. FURNISHING ACCESSORIES: Second Creditors' Meeting Set for Dec. 23 ----------------------------------------------------------------- A second meeting of creditors in the proceedings of Furnishing Accessories Pty Ltd has been set for Dec. 23, 2020, at 10:30 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 Dec. 22, 2020, at 4:00 p.m. Michael Gregory Jones of Jones Partners was appointed as administrator of Furnishing Accessories on Nov. 25, 2020. ICRA ROLLESTON: First Creditors' Meeting Set for Dec. 21 -------------------------------------------------------- A first meeting of the creditors in the proceedings of ICRA Rolleston Pty Ltd will be held on Dec. 21, 2020, at 11:00 a.m. via Zoom meeting. Nick Combis of Vincents Chartered Accountants was appointed as administrator of ICRA Rolleston on Dec. 10, 2020. NHGM SERVICES: First Creditors' Meeting Set for Dec. 23 ------------------------------------------------------- A first meeting of the creditors in the proceedings of NHGM Services Pty Ltd will be held on Dec. 23, 2020, at 9:45 a.m. via virtual meeting. Bruce Gleeson and Daniel Robert Soire of Jones Partners were appointed as administrators of NHGM Services on Dec. 15, 2020. ========= C H I N A ========= SHANDONG RUYI: Defaults on US$153 Million Bond ---------------------------------------------- The Financial Times reports that the Chinese clothing maker that controls brands including The Lycra Company and Gieves & Hawkes revealed on Dec. 14 that it had failed to pay back investors on a $153 million bond, the latest in a string of defaults in the country. Shandong Ruyi Technology Group, which has struggled to cope with a heavy debt load after a series of high-profile international acquisitions, said in a filing that it had failed to repay the principal and interest on a CNY1 billion bond that came due on Dec. 14, the FT relates. It has joined a growing list of defaults among troubled companies that have sent tremors through China's $4 trillion corporate bond market since November, the report says. According to the FT, privately held Shandong Ruyi, based in the coastal province of Shandong and sometimes referred to as the "LVMH of China", built up total debt of more than $4 billion in the course of scooping up controlling stakes in famous brands including athletic apparel maker The Lycra Company and Savile Row tailor Gieves & Hawkes. The wave of defaults - which began in early November with a missed payment by state-run Yongcheng Coal - have raised questions about the state backing of local government debt, long viewed by investors as implicitly guaranteed, the FT says. Shandong Ruyi is not state-owned but has still felt the squeeze of Beijing's ebbing support for debt issued by regional and local governments, which were previously given substantial discretion to borrow heavily in support of maintaining rapid economic growth, according to the report. After the clothing company negotiated with bondholders to delay an annual interest payment it had missed in March, the company had hoped for a rescue from Jining City Urban Construction Investment, a Shandong-based local government financing vehicle. But in June, that financing vehicle announced it was pulling out of an arrangement made in October 2019 to buy a 26 per cent stake in the company, the report states. According to the FT, local government financing vehicles have come under tighter scrutiny and thus were under pressure to cut back on risky investments, said Michelle Lam, greater China economist at Société Générale. The FT relates that Ms. Lam said the Shandong Ruyi default highlighted the risk of cross-guarantees between government related companies and private enterprises in China, "which can increase the risk of financial contagion". Financing pressures could come into sharper focus next year as China's economic recovery continues, probably prompting policymakers to tighten liquidity conditions, she said. Erik Lueth, senior emerging market economist at Legal & General Investment Management, added that "allowing this kind of default once in a while" was "part of the strategy [China is] pursuing to introduce more moral hazard into the system," the FT relays. "It is a two steps forward, one step back approach", he said. Shandong Ruyi has an interest payment on another CNY1 billion bond, also traded on China's onshore market, due on Dec. 15. The group's international debt is also trading at distressed levels. The price of a $300 million bond issued by subsidiary Prime Bloom Holdings due in 2022 has dropped to 20 cents on the US dollar, the FT discloses citing Bloomberg data. About Shandong Ruyi Shandong Ruyi Technology Group Co., Ltd, manufactures textile products. The Company produces rabbit hair spinning yarns, cotton textiles, dyeing fabrics, knitting yarns, and other products. Shandong Ruyi Technology Group also operates entity investment, import and export, and other businesses. As reported in the Troubled Company Reporter-Asia Pacific on March 27, 2020, Moody's Investors Service has downgraded Shandong Ruyi Technology Group Co., Ltd.'s corporate family rating to Caa3 from Caa1 and the rating on the senior unsecured notes issued by Prime Bloom Holdings Limited and guaranteed by Shandong Ruyi to Ca from Caa2. The ratings outlook remains negative. [*] CHINA: Financially Troubled Companies Face Bourse Cull ---------------------------------------------------------- Bloomberg News reports that China's weakest stocks faced another blow after exchange regulators issued tougher rules to weed them out of the market. More than a dozen firms under so-called special treatment status saw shares fall their 5% limit in Shanghai and Shenzhen after draft revisions were issued on Dec. 14 seeking to shorten the delisting process and toughen financial, trading and violation criteria, Bloomberg relates. Companies under special treatment have received delisting warnings for reasons ranging from accounting issues to business failure, and they're subject to trading restrictions, Bloomberg says. According to Bloomberg, the proposed revisions to delisting rules for all mainland firms are an acceleration in efforts by China to clean up the stock market and bolster investor confidence. Included in the draft is companies losing their listing if market capitalization finishes below CNY300 million (US$46 million) for 20 straight days, Bloomberg notes. The draft comes after China Securities Journal reported last month that a government panel approved a delisting implementation plan, making it a top-level proposal, adds Bloomberg. ========= I N D I A ========= AGRIMAS CHEMICALS: CARE Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Agrimas Chemicals Limited (ACL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 25.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category Short Term Bank 18.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 6, 2019, placed the ratings of ACL under the 'issuer non-cooperating' category as ACL had failed to provide information for monitoring of the rating. ACL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter dated November 23, 2020. 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. 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 Agrimas Chemicals Limited (ACL) continue to take into account the ongoing delays in the servicing of debt obligations by the company. Detailed description of the key rating drivers At the time of last rating on November 6, 2019, the following were the rating strengths and weaknesses: Key Rating Weaknesses * Delays in debt servicing: There are ongoing delays in debt servicing and the account is classified as NPA. Decline in operational performance: The company reported decrease in TOI at INR223.54 cr in FY18 (PY: 258.21 cr) and a net loss of INR4.24 cr in FY18 (PY:PAT of INR2.28 cr). PBILDT margin moderated to 10.10% in FY18 (PY: 12.80%). The company reported negative PAT margin of 1.90% in FY18 (PY: PAT margin of 1.11%). * Weak Financial Risk Profile: Overall gearing improved as on March 2018 to 1.31x (PY: 1.91x) on account of decrease in total debt. However, interest coverage ratio deteriorated and remained weak at 1.08x in FY18 (PY: 1.30x). The company reported negative cash accruals of INR0.75 cr (PY: INR6.11 cr). Liquidity: Poor There are continuous delays in debt servicing with negative GCA of INR0.75 cr (PY: INR6.11 cr). Analytical approach: Combined as both Coromandel Agrico Private Limited and Agrimas Chemials Limited (ACL) are engaged into similar line of business with common promoters and management. Incorporated in 1973, ACL is engaged in manufacturing of agro chemical products. It has two manufacturing facilities, at Taloja (Mumbai) and Sikandrabad (Uttar Pradesh) with a manufacturing capacity of 7,320 Kilo liters per annum (KLPA) of liquid sand 18,600 metric tons per annum (MTPA) of powder and granules. CAPL was incorporated in 1998, and is engaged in the same line of business. The company has 3 manufacturing facilities at Sikandrabad, Baroda – Nandeswari (Gujarat) and Chiplun Lote (Maharashtra) with a manufacturing capacity of 5,500 KLPA in liquid section and 15,000 MTPA in powder and granules section of agro chemical products. ANUGRAH STOCK: CARE Lowers Rating on INR20cr Bank Loan to D ----------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Anugrah Stock & Broking Private Ltd (Anugrah), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Bank Overdraft 20.00 CARE D; ISSUER NOT COOPERATING (Long Term- Revised from CARE BB+; Fund Based) ISSUER NOT COOPERATING Bank Guarantees 25.00 CARE D; ISSUER NOT COOPERATING (Short Term- Revised from CARE A4+; Non-fund Based) ISSUER NOT COOPERATING Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated March 30, 2020, placed the ratings of Anugrah under the "Issuer Not Cooperating" category as Anugrah 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. Anugrah continues to be noncooperative. CARE has revised the ratings of the long term and short term instruments of the company. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The rating revision follows feedback from bankers regarding instances of delay in servicing of loan obligations. As per media reports, the National Stock Exchange (NSE) also declared company as a defaulter for being unable to meet settlement obligations and expelled the brokerage house from the membership. Further, media reports also reveal that the Anugrah is facing multi-agency probe with respect to various allegations and the case is with Bombay High Court. Anugrah was incorporated in 1996, is primarily in business of retail equity broking. The company is Mumbai based and has network of 6 branches in states of Maharashtra, Gujarat, Rajasthan and Andhra Pradesh. The margin financing business is also carried out through a promoter related company and not under Anugrah. Anugrah has a network of over 409 franchisee providing services to more than 20207 number of clients across the country. ARCOTECH LIMITED: CARE Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Arcotech Limited (ATL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 266.81 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category Long Term/Short 205.00 CARE D/CARE D; ISSUER NOT Term Facilities COOPERATING; Rating continues to remain Under ISSUER NOT COOPERATING Category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated December 12, 2019, placed the ratings of ATL under the 'issuer non-cooperating' category as ATL had failed to provide information for monitoring of the rating. ATL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter dated November 23, 2020. 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. 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 Arcotech Limited (ATL) continue to take into account the ongoing delays in the servicing of debt obligations by the company. Detailed description of the key rating drivers At the time of last rating on December 12, 2019 the following were the rating strengths and weaknesses: Key Rating Weaknesses * Ongoing delays in debt servicing: The ratings assigned to the bank facilities of ATL take into account ongoing delays in debt servicing. Arcotech was incorporated as Shri Krishna Strips Ltd in 1984 and started its operations with a unit at New Delhi to manufacture cold rolled copper/brass strips & foils with a capacity of 1,666 MT. In 2006, the company relocated its unit to Bawal, Haryana and its shares were listed on the Bombay Stock Exchange Ltd (NSE & BSE) with effect from Dec ember 28, 2007. The company undertakes manufacturing of brass & copper foils, strips and sheets including radiator brass foils and radiator copper foils with a capacity of 24,000 MTPA as on March 31, 2017 at its facility in Bawal (Haryana). BALRAM COTEX: CARE Withdraws B+ Rating on Bank Facilities --------------------------------------------------------- CARE has reviewed the ratings assigned to the bank facilities of Balram Cotex (BAC) at 'CARE B+; Stable' and has simultaneously withdrawn it, with immediate effect. The ratings assigned to the bank facilities of BAC are constrained on account of moderate scale of operations with thin profit margins during FY20 (refers to the period April 1 to March 31). The ratings also remains constrained on account of constitution as a partnership firm, susceptibility of its profit margins to cotton price fluctuations and its presence in a fragmented and seasonal cotton industry with regulatory controls. The rating, however, continues to draw strength from experienced partners in cotton industry along with location advantage on account of it being located in the cotton-producing belt of Gujarat and moderate capital structure. The rating withdrawal is at the request of BAC and 'No Objection Certificate' received from the bank that has extended the facilities rated by CARE. Detailed description of the key rating drivers Key Rating Weaknesses * Moderate scale of operations along with thin profit margins: Total Operating Income (TOI) of BAC has declined by 8.52% during FY20, however remained moderate at INR48.61 crore (INR53.14 crore during FY19). Profit margins have continued to remain thin marked by PBILDT margin of 1.19% which has declined by 23 bps during FY20 mainly due to higher employee costs as well as manufacturing expenses. GCA remained at INR0.12 crore during FY20 (INR0.15 crore during FY19). * Partnership nature of its constitution with presence in a highly fragmented and seasonal industry along with regulatory Controls: BAC being a partnership firm faces risk of withdrawal of capital by the partners which may affect the overall financial flexibility of the firm. Also, the industry is highly fragmented marked by presence of large number of units operating in cotton ginning business, while cotton being a seasonal crop is dependent upon the vagaries of monsoon. Furthermore, the cotton supply and prices in India are highly regulated by the government through Minimum Support Price (MSP) and export regulations. * Susceptibility of profit margins to cotton price fluctuations: The price of raw material i.e. raw cotton is highly volatile in nature and depends upon factors like area under production, yield for the year, international demand supply scenario, export quota decided by government and inventory carry forward of last year which exposes the ginners to price volatility risk. Key Rating Strengths * Experienced partners in the cotton industry with location advantage: The key partners of the company have vast experience in the cotton industry and have been involved in cotton ginning business for more than two decades. BAC is based at Kadi region in Gujarat which is one of the largest cotton producing region having benefits derived out of stable power supply, labour, lower logistics expenditure and easy availability and procurement of raw cotton at effective prices. * Moderate capital structure: Capital structure has improved over previous year and remained moderate at 1.58x as on March 31, 2020 (2.99x as on March 31, 2019) mainly due to lower utilization of working capital borrowings. Debt coverage indicators have improved but remained weak marked by Total debt to GCA ratio of 39.04 years during FY20 (70.97 years during FY19). Interest coverage remained at 1.27x during FY20 (1.23X during FY19). As per banker interaction, BAC has availed moratorium benefit for its bank facilities from March 2020 to August 2020. Kadi-Mehsana (Gujarat) based Balram Cotex (BAC) was established in April 2013 by Patel family, having seven partners. Mr. Hasmukhbhai Motilal Patel, having experience of more than two decades in the similar line of business, looks after overall management of the business. BAC is primarily engaged in the business of cotton ginning and bailing. The manufacturing facilities of the firm is in Kadi (Mehsana-Gujarat) with installed capacity for cotton bales of 40.20 lakh kg per annum and cotton seeds of 60 lakh kg per annum. BRAHMA TEJA: CARE Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Brahma Teja Paper Products (BTPP) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 5.45 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category Short Term Bank 4.55 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated September 30, 2019, placed the ratings of BTPP under the 'issuer non-cooperating' category as BTPP had failed to provide information for monitoring of the rating. BTPP continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and email dated from January 2020 to November 19, 2020 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. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. Detailed description of the key rating drivers At the time of last rating on September 30, 2019, the following were the key rating strengths and weaknesses * Ongoing delays in servicing debt obligations: The firm has ongoing delays in term loan installment repayments along with servicing of interest obligations due to stressed liquidity position at the back of delays in collection of payments from debtors coupled with the funds being blocked in inventory. * Small scale of operations with fluctuating total operating income: BTPP had a small scale of operations marked by a Total Operating Income (TOI) of INR9.24 crore in FY17 and a low net worth base of INR3.14 crore as on March 31, 2017. Being dependent on tender driven process for receipt of orders, the TOI declined from INR12.98 crore in FY16 to INR9.24 crore in FY17 due to lower orders secured. * Leveraged capital structure and weak debt coverage indicators: The capital structure of the firm remained leveraged marked by debt to equity and overall gearing ratio. However the debt to equity and overall gearing ratio of the firm has improved from 2.14x and 2.89x respectively as on March 31, 2016 to 1.65x and 2.53x respectively as on March 31, 2017 at the back of repayment of term loan installments. The debt coverage indicators of the firm remained weak during the review period. The total debt to GCA and interest coverage ratio of the firm has deteriorated from 13.79x and 1.99x respectively in FY 16 to 17.82x and 1.68x respectively in FY17 due to decrease in gross cash accruals and increase in interest cost at the back of increase in working capital utilization. * Working capital intensive nature of business operations: The firm is operating in working capital intensive nature of business. The working capital cycle of the firm is elongated and stood at 342 days in FY17 as compared to 192 days in FY16. The increase in operating cycle days was mainly due to elongated average collection period and average inventory days at 262 days and 221 days respectively in FY17. Further, as the funds of the firm are blocked majorly in debtors and inventory, the creditor's payment period is also elongated and stood at 142 days in FY17. * Constitution of the entity as proprietorship firm with inherent risk of withdrawal of capital: The firm being a proprietorship firm is exposed to inherent risk of capital withdrawal by the proprietor, due to its nature of constitution. Further, any substantial withdrawals from capital account would impact the net worth and thereby the financial profile of the firm. * Highly fragmented industry with intense competition from large number of players: The firm is engaged in Manufacturer of paper products and paper goods; also offering paper printing services, which is highly fragmented industry due to presence of large number of organized and unorganized players in the industry, the firm faces huge competition. Key Rating Strengths * Experience of the proprietor about two decades in manufacturing of paper products and printing: The firm was established in 1998 by Mr. Janaki Paruchuri (proprietor) who has about two decades of experience in manufacturing of paper products and printing. Due to long term experience in the paper business, the promoters have good relations with suppliers and customers. Further, Mr. Janaki has received "Best Woman Entrepreneur award" from Khadi and Village Industries Board and from All India Manufacturers organization (Andhra Pradesh state board) and National award from Government of India for production of best quality note books and for providing employment to 30 women. * Satisfactory profitability margins although fluctuating during review period: The PBILDT margin of the firm has been fluctuating during the review period in the range of 11%-19% due to variation in margins associated with orders received from state departments and educational institutes through tender based process along with fluctuating scale of operations impacting absorption of fixed overheads. Furthermore, the PAT margin of the firm though stood satisfactory fluctuated in the range of 3%-5% during review period due to fluctuating operating profit and financial expenses. Hyderabad based, Brahma Teja Paper Products (BTPP) was established in the year 1998 by Mr. Janaki Paruchuri under Khadi and Village Industries Board margin scheme. The firm is engaged in manufacturing of paper products and paper goods and also offering paper printing services. The raw material used in manufacturing paper products includes paper, chemicals & inks, duplex board, art cards, which the firm procures from dealers and distributors located in Telangana region. The firm procures its orders through tenders majorly from Andhra Pradesh, Telangana and Karnataka state government departments for printing of text books. Furthermore, the customer base of the firm also includes educational institutions to which it supplies note books. CHANDRA BHAGAT: CARE Lowers Rating on INR22cr LT Loan to D ---------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Chandra Bhagat Pharma Limited (CBPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 22.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING category and Revised from CARE B; Stable Short Term Bank 5.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING category and Revised from CARE A4 Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated July 17, 2020, placed the rating(s) of CBPL under the 'issuer non-cooperating' category as CBPL had failed to provide information for monitoring of the rating. 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. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The rating has been revised on account of delay in the debt servicing. Detailed description of the key rating drivers * Delay in debt servicing: As per audit report of FY20 published on BSE dated Decemeber 1, 2020 wherein it has mentioned that the company has made defaults in the repayment of dues to banks. Incorporated in 2003, Chandra Bhagat Pharma Pvt. Ltd. (CBPPL) is engaged into manufacturing of formulations (forming 87.22% of the total revenue in 2016) and trading of API (forming 12.77% of the total revenue in 2016) for both domestic as well as international markets under the brand name of 'CBC'. Recently i.e. during April 2019, CBPPL converted into Limited company and subsequently listed on BSE on Feb 14, 2020.The company manufactures formulations by outsourcing to third party on job work basis. The company has a well-diversified product portfolio marked by its presence across many therapeutic segments such as cardiovascular agents, antibiotics, anti-arthritic, anti-fungal, anti-viral, anti-malarial and miscellaneous drug. Under the trading segment, CBPPL procures its key API mainly from domestic market (forming 86% during FY16) and international market (forming remaining portion) and sells in the domestic market (forming 91.09% of the overall revenue during FY16) and rest in international market. COFFEE DAY: CARE Migrates D Debt Rating to Not Cooperating ---------------------------------------------------------- CARE Ratings has migrated the rating on bank facilities of Coffee Day Global Limited (CDGL) to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 72.41 CARE D; ISSUER NOT COOPERATING; Facilities Rating moved to ISSUER NOT COOPERATING category Long-term Bank 397.20 CARE D; ISSUER NOT COOPERATING; Facilities Rating moved to ISSUER NOT Working Capital COOPERATING category Detailed Rationale & Key Rating Drivers CARE has been seeking information from CDGL to monitor the rating(s) vide e-mail communications/letters dated October 2, 2020, October 27, 2020 among others and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. 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 on CDGL's bank facilities will now 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). The ratings take into account ongoing delays in debt servicing of bank facilities. The liquidity of the company had remained tight due to disruption witnessed in company's operations following the event of unexpected demise of Promoter coupled with liquidity crunch at group level which has led to reduction in group's financial flexibility. Detailed description of the key rating drivers At the time of last rating on September 5, 2019 the following were the rating strengths and weaknesses (updated for FY20 abridged financials published on stock exchange by Coffee Day Enterprises Limited, holding company of CDGL). Key Rating Weaknesses * Ongoings delay in debt servicing: Coffee Day Enterprises Limited (CDEL: Holding Company of CDGL) vide stock exchange filing dated November 09, 2020 in its announcement of results for CDGL has informed that several lenders have classified the company facilities as NPA and there is default in payment of dues to various banks and financial institutions to the tune of Rs.211.65 crores (including interest of INR24.81 crores) upto March 31, 2020. Following the event of unexpected demise of Mr. V.G. Siddhartha, Company's operations have witnessed disruption and coupled with liquidity crunch at group level has led to reduction in group's financial flexibility. * Significant losses reported in FY20: During FY20, company reported net losses of INR319.0 crore on a total operating income of INR1553 crore as against net profit of INR40.6 crore on a total operating income of INR1850 crore in FY19. Coffee Day Global Limited (CDGL) was originally incorporated as Amalgamated Bean Coffee Trading Company Limited on December 6, 1993 as a Private Limited company and subsequently on February 3, 1997 was converted to a Public Limited company. CDGL is an integrated coffee retailer, having presence across the entire business activities from coffee procuring till retailing. In order to move up the value chain, the company forayed into retailing of coffee by opening retail shops in the name of 'Coffee Day' in 1995 and cafés in the name of 'Café Coffee Day' (CCD) in 1996. CDGL has five business divisions; Café Division (Café Coffee Day), Xpress Division, Vending Division, Package Division and Production, Procurement and Exports (PPE) Division. COROMANDEL AGRICO: CARE Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Coromandel Agrico Private Limited (CAPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 53.58 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category Short Term Bank 22.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 6, 2019, placed the ratings of CAPL under the 'issuer non-cooperating' category as CAPL had failed to provide information for monitoring of the rating. CAPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter dated November 23, 2020. 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. 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 Coromandel Agrico Private Limited (CAPL) continue to take into account the ongoing delays in the servicing of debt obligations by the company. Detailed description of the key rating drivers At the time of last rating on November 6, 2019 the following were the rating strengths and weaknesses: Key Rating Weaknesses * Delays in debt servicing: There are ongoing delays in debt servicing and the account is classified as NPA. * Decline in operational performance: The company reported decrease in TOI at INR223.54 cr in FY18 (PY: 258.21 cr) and a net loss of INR4.24 cr in FY18 (PY:PAT of INR2.28 cr). PBILDT margin moderated to 10.10% in FY18 (PY: 12.80%). The company reported negative PAT margin of 1.90% in FY18 (PY: PAT margin of 1.11%). * Weak Financial Risk Profile: Overall gearing improved as on March 2018 to 1.31x (PY: 1.91x) on account of decrease in total debt. However, interest coverage ratio deteriorated and remained weak at 1.08x in FY18 (PY: 1.30x). The company reported negative cash accruals of INR0.75 cr (PY: INR6.11 cr). Liquidity: Poor There are continuous delays in debt servicing with negative GCA of INR0.75 cr (PY: INR6.11 cr). Analytical approach: Combined as both Coromandel Agrico Private Limited and Agrimas Chemials Limited (ACL) are engaged into similar line of business with common promoters and management. CAPL was incorporated in 1998, and is engaged in the same line of business. The company has 3 manufacturing facilities at Sikandrabad, Baroda – Nandeswari (Gujarat) and Chiplun Lote (Maharashtra) with a manufacturing capacity of 5,500 KLPA in liquid section and 15,000 MTPA in powder and granules section of agro chemical products. Incorporated in 1973, ACL is engaged in manufacturing of agro chemical products. It has two manufacturing facilities, at Taloja (Mumbai) and Sikandrabad (Uttar Pradesh) with a manufacturing capacity of 7,320 Kilo liters per annum (KLPA) of liquid sand 18,600 metric tons per annum (MTPA) of powder and granules. GANAPATI BUILDERS: CARE Lowers Rating on INR8cr LT Loan to C ------------------------------------------------------------ CARE Ratings revised the ratings on certain bank facilities of Ganapati Builders Limited (GBL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 8.00 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category and Revised from CARE B; Stable Detailed Rationale & Key Rating Drivers CARE has been seeking information from GBL to monitor the rating vide e-mail communications/letters dated October 7, 2020, October 12, 2020 and October 14, 2020 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the publicly available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Further, Ganapati Builders Limited has not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. The rating on GBL's bank facilities will now be denoted as CARE C; Stable; ISSUER NOT COOPERATING. Further, due diligence could not be conducted. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. The rating has been revised on account of significant decline in total operating income along with decline in profit levels and cash accruals during FY19 audited (obtained from Ministry of Corporate Affairs). The rating also factors in the deterioration in capital structure and debt coverage indicators during FY19. Moreover, the rating continues to remain constrained by weak financial risk profile, project execution as well as funding risk, geographical concentration risk with operations confined to Orissa and competition from similar type of projects in the adjoining areas. The rating continues to derive strength from experienced promoters and satisfactory project execution capabilities. Detailed description of the key rating drivers Key Rating Weaknesses * Weak financial risk profile: The scale of operation of the company has declined significantly year on year and the same remained small marked by TOI of INR0.02 crore with a gross cash accruals of INR0.01 crore in FY19. The capital structure of the deteriorated and remained leveraged marked by overall gearing at 6.65x as on March 31, 2019. Further the debt coverage also deteriorated and remained weak marked by interest coverage at 14.28x and debt coverage at 1032.99x in FY19. * Project execution as well as funding risk: The Company is currently developing a single project at a project cost of INR22.98 crore with total saleable area of 138388 square feet. GBL has spent around INR4.00 crore till May 31, 2017 out of total project cost of INR22.98 crore on the aforesaid project. Since the project is into initial stage of operations, the company is exposed to the execution risk for the projects under development. Furthermore, considering rising commodity prices and labour shortage along with subdued economic scenario, risk related to the timely construction of the balance projects cannot be ignored. Furthermore, the debt portion of the project is yet to be tied up and thus project funding risk exists. * Geographical concentration risk with operations confined to Orissa: GBL's operations are restricted to Orissa since inception indicating high geographical concentration risk. Accordingly, any change in the policy of the government might affect the operations of the company directly. However, the promoters are well versed with the local real estate market and its dynamics which partly mitigates the risk associated with the completion of the projects. * Competition from similar type of projects in the adjoining areas: Real estate, while being one of the largest sectors of the economy, is regional and fragmented in nature. In recent times, many new real estate projects have been launched in Bhubaneswar, by organized and unorganized players due to the surge in property prices coupled with low entry barriers which has led to high competition in real estate market. However, due to established brand presence in the area the company is able to surge in the growth of its revenue during FY16. Key Rating Strengths * Experienced promoters: GBL is into real estate development business in the state of Orissa since 1995 and thus has a long track record of 22 years. The promoters Mr. Santosh Kumar Agarwal, Mr. Anand Agarwal and Mr. Krishna Kumar Agarwal have more than two decades of experience in real estate business. Further, the promoters are well supported by a team of experienced professionals. * Satisfactory project execution capabilities: GBL has executed various real estate projects in the state of Orissa in the segment of residential as well as commercial complex. Since its inception, the company has executed various real estate projects and thus has satisfactory track record of execution of real estate projects. Odhisa based GBL was incorporated on March 29, 1995 and it is currently managed by Mr. Santosh Agarwal, Mr. Anand Agarwal and Mr. Krishna Kumar Agarwal. Since its incorporation, the company has been engaged in development of commercial and residential real estate projects. In past, the company has developed various real estate projects in the state of Odhisa namely Ganapati Villa, Ganapati residency, Ganapati Market Complex, New Ganapati Villa, KRP Residency Block A. The company gives construction activities of its projects to contractor and it focus mainly on marketing aspects. The promoters have satisfactory business experience of more than two decades in real estate industry. GSR AND KKR EDUCATIONAL: CARE Cuts Rating on INR13.73cr Loan to D ----------------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of GSR & KKR Educational Society (GKES), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 13.73 CARE D Revised from CARE BB-; Facilities Stable Detailed Rationale & Key Rating Drivers The revision in the rating assigned to the bank facilities of GKES is on account of stretched liquidity position due to delay in the admission process for the academic year FY20-21 because of COVID19 along with delay in fee reimbursement from the Andhra Pradesh State Government resulting in elongated collection period. Due to aforementioned reasons, the society is delaying in meeting the debt obligations on time. Rating Sensitivities Positive Factors * To ease the liquidity and meet the debt obligations on time at least for 3 months continuously. Detailed description of the key rating drivers Key Rating Weaknesses * Stretched liquidity position with delays in debt servicing: The liquidity profile of the society is strained on account of delay in the admission process for the academic year FY20-21 because of COVID19 along with delay in fee reimbursement from the Andhra Pradesh State Government resulting in elongated collection period which had led to delay in debt servicing on time. * Delay in the admissions process for AY20-21 due to COVID19: The Covid-19 has impacted very sector of the country including the educational sector. The Government also announced closure of all educational institutions in an attempt to contaminate the spread of the Virus. Due to aforementioned reason, exams at different levels were cancelled and postponed. Nevertheless, Engineering and Medical Common Entrance Test (EAMCET) which is conducted in Andhra Pradesh and Telangana in the month of April and May every year for admission into engineering colleges was also postponed to September and October month for AY20-21 and subsequently the admission process for KITS for the AY20-21 has slowed down and expected to be completed by December 2020. However, KITS has maintained gross enrollment ratio of above 70% for the AY18-20 which is considered to be moderate. * Higher collection period: The average collection period of the society has remained stretched at about 217 days in FY20 (Prov.) (140 days in FY19) owing to delay in realization of fee from state government which in turn has resulted in the elongation of the total operating cycle to 106 days in FY20 (Prov.) (42 days in FY19). Liquidity: Poor The liquidity profile of the society is strained due to slowdown and delay in the admission process for the AY20-21 due to COVID19 along with stretched collection period on account of delay in the fee reimbursement from the Andhra Pradesh State Government leading to cashflow mismatches during October and November 2020. The working capital utilization limit of the society also remains high at 99% for the past 12 months ending November 2020. The society has availed moratorium for the six months (March 2020 to August 2020) as a part of RBI regulatory package and also availed COVID19 GECL term loan of INR2.85 crore. GSR & KKR Educational Society (GKES) was established in the year 2007 at Guntur by Mr. Koyi Subba Rao, founder & chairman of the society; to provide education for aspirant engineering and management students. The Society started with the setting up of KKR & KSR Institute of Technologies and Sciences (KITS) in the year 2007 in Guntur District, Andhra Pradesh. GKES provides both undergraduate courses (B. Tech) and post graduate courses (i.e. M.B.A and M. Tech) in KITS. The institution is affiliated to Jawaharlal Nehru Technological University (JNTU), Kakinada and approved by All India Council for Technical Education (AICTE). KITS is also National Assessment and Accreditation Council (NAAC) accredited institute. GSR ECO BRICKS: CARE Migrates D Debt Rating to Not Cooperating -------------------------------------------------------------- CARE Ratings has migrated the rating on bank facilities of GSR Eco Bricks Private Limited (GEBPL) to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 19.00 CARE D; ISSUER NOT COOPERATING Facilities Rating moved to ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE has been seeking information from GEBPL to monitor the rating vide e-mail communications dated April 2020 to November 20, 2020 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. 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 on GSR Eco Bricks Private Limited's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. The company availed moratorium from March 2020 to August 2020. 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 take into account of ongoing delays in serving interest in term loan facilities. However the ratings continue to derive its strength from experienced promoter with more than three decades in manufacturing industry Detailed description of the key rating drivers At the time of last rating on May 19, 2020 the following were the rating strengths and weaknesses (updated for the information available from Registrar of Companies): Key rating Weaknesses * Ongoing delays in meeting of debt obligations: GSR ECO Bricks Private Limited facing liquidity issues from past few months due to which the company is unable to make the interest payments on time resulted in ongoing interest delays in term loan facilities. Key Rating Strengths * Experienced promoter with more than three decades in manufacturing industry: GSR Eco Bricks Private Limited (GEBPL) was incorporated as a private limited company in February 2014, by Mr. Jagan Mohan Rao along with Sitaramamma. Mr. Jagan Mohan Rao is the managing director and looks after the day to day activities of the company. The company has its registered office in Prakasam (Dist), Andhra Pradesh. The company is engaged in manufacturing of Automated Aerated Concrete Blocks. GSR Eco Bricks Private Limited (GEBPL) was incorporated as a private limited company in February 2014, by Mr. Jagan Mohan Rao along with Sitaramamma. Mr. Jagan Mohan Rao is the managing director and looks after the day to day activities of the company. The company has its registered office in Prakasam (Dist), Andhra Pradesh. The company is engaged in manufacturing of Automated Aerated Concrete Blocks and with installed capacity of 800 Q.M per month. HIPAD TECHNOLOGY: Insolvency Resolution Process Case Summary ------------------------------------------------------------ Debtor: Hipad Technology India Private Limited Plot No. 154 C Block A Sector 63 Noida Gautam Buddha Nagar UP 201307 Insolvency Commencement Date: December 9, 2020 Court: National Company Law Tribunal, Allahabad Bench Estimated date of closure of insolvency resolution process: June 6, 2021 Insolvency professional: Sandeep Chandna Interim Resolution Professional: Sandeep Chandna #23, GF, A-Lock South City 2 Sector 49 Sohna Road Gurgaon 122018 E-mail: cssandeep@live.in cirpforhipad@outlook.com Last date for submission of claims: December 24, 2020 JAGADEESH AND SHASHIREKHA: CARE Moves D Rating to Not Cooperating ----------------------------------------------------------------- CARE Ratings has migrated the rating on bank facilities of Jagadeesh And Shashirekha (JS) to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 11.51 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category and moved to ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE has been seeking information from JS to monitor the rating(s) vide e-mail communications August 26, 2020, August 28, 2020, September 1, 2020, October 5, 2020 and October 6, 2020 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. 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 of Jagadeesh And Shashirekha (JS) bank facilities will now 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. The revision in the rating assigned to the bank facilities of Jagadeesh and Shashirekha (JS) is on account of ongoing delays in servicing the debt repayment obligation. Detailed Rationale& Key Rating Drivers Key Rating Weakness * Delays in servicing repayment obligation: There are delays in servicing debt obligation of more than 60 days and overdue in terms loan accounts for the month of September 2020 as per banker interaction. The firm had availed moratorium for the period March 1, 2020 to August 31, 2020. Key rating Strengths * Experienced promoters: Mr. Jagadeesh and Mr. Shashirekha Jagadeesh have been involved in agricultural business activities in the past for more than two decades and have established good contacts in the agricultural community in Bangalore and Nelamangala. They have been living in Karnataka for more than three decades. They are agriculturist and have developed more than 20 acres of land in Byrashettihalli & Arjuna Bettahalli. They are cultivating seasonal crops and also enjoy good rapport among the progressive farming community of the surrounding villages. Mr. Jagadeesh has associate companies in diversified sectors in Constructions, dubbing services, etc. The joint owners are getting income from farm house property, interest on savings and deposits etc. Jagadeesh And Shashirekha (JS) refers to Joint Borrowers namely Mr. Jagadeesh and Smt. Shashirekha Jagadeesh. The said individuals have come together to lease two ware houses with an aggregate area 189000 sq. ft. build-up area at Nelamangala Taulk, Bangalore which has been leased out. JAYAWANTI BABU: CARE Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Jayawanti Babu Foundation (JBF) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 8.51 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category Short Term Bank 1.49 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category Detailed Rationale, Key Rating Drivers and Detailed description of the key rating drivers CARE had, vide its press release dated September 30, 2019, placed the rating of JBF under the 'issuer non-cooperating' category as JBF had failed to provide information for monitoring of the rating as agreed to in its Rating Agreement. JBF continues to be non-cooperative despite repeated requests for submission of information through email dated June 22, 2020, July 31, 2020, October 19, 2020, October 22, 2020 and numerous phone calls. 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. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. Detailed description of the key rating drivers At the time of last rating on September 30, 2019, the following were the rating weaknesses: Key Rating Weaknesses * Delay in servicing of debt obligations: As per the interaction with the banker dated August 29, 2019, there were delays in the repayment of term loan and the account was classified as NPA. Established in 2007, Jayawanti Babu Foundation (JBF) runs an education institute. The trust is registered under Bombay Public Trust Act, 1950. Currently, the trust is managing one college, namely, Metropolitan Institute of Technology and Management (MITM). JOYTARA RICE: CARE Lowers Rating on INR9.83cr LT Loan to B- ----------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Maa Joytara Rice Mills Private Limited (MJRPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 9.83 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category and Revised from CARE B; Stable Short Term Bank Facilities 0.17 CARE A4; ISSUER NOT COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE has been seeking information from MJRPL to monitor the ratings vide email communications/letters dated Oct. 6, 2020, Oct. 9, 2020 and Oct. 13, 2020 and numerous phone calls. However, despite CARE's repeated requests, the entity has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the publicly available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Further, MJRPL has not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. The rating on MJRPL's bank facilities will now be denoted as CARE B-; Stable; ISSUER NOT COOPERATING and CARE A4; ISSUER NOT COOPERATING. Further, the banker could not be contacted. Users of these ratings (including investors, lenders and the public at large) are hence requested to exercise caution while using the above ratings. The revision in the ratings takes in account the non-availability of requisite information due to non-cooperation by MJRPL with CARE'S efforts to undertake a review of the rating outstanding. Detailed description of the key rating drivers At the time of last rating in September 9, 2019 the following were the rating weaknesses and strengths (Updated the information available from Ministry of Corporate Affairs). Key Rating Weaknesses * Small scale of operations with weak profitability margins: MJRPL is a relatively small player in the rice milling industry marked by its total operating income of INR49.10 crore with a net profit of INR0.16 crore in FY19. The profit margins of the company remained moderate as marked by PBILDT margin of 5.56% and net profit margin of 0.33% during FY19. * Volatile agro-commodity (paddy) prices with linkages to vagaries of the monsoon: MJRPL is primarily engaged in the processing of rice products in its rice mills. Paddy is mainly a 'kharif' crop and is cultivated from June-July to SeptemberOctober and the peak arrival of crop at major trading centers begins in October. The cultivation of paddy is highly dependent on the monsoon. Unpredictable weather conditions could affect the output of paddy and result in volatility in price of paddy. In view of seasonal availability of paddy, working capital requirements remain high at season time owing to the requirement for stocking of paddy in large quantity. * Regulated nature of the industry: The Government of India (GoI), every year decides a minimum support price (MSP) to be paid to paddy growers which limits the bargaining power of rice millers over the farmers. The MSP of paddy increased during the crop year 2019 - 2020 to INR1815/quintal from INR1750/quintal in crop year 2018-19. The sale of rice in the open market is also regulated by the government through levy of quota, depending on the target laid by the central government for the central pool. Given the market determined prices for finished product vis-à-vis fixed acquisition cost for raw material, the profit margins are highly vulnerable. * Leveraged capital structure with weak debt coverage indicators: The capital structure of the company remained leveraged marked by overall gearing ratio of 2.58x as on March 31, 2019. Furthermore the debt coverage indicators remained moderate as marked by interest coverage of 1.73x (FY18: 0.50x) and total debt to GCA of 12.55x (FY18: -8.02) in FY19. Key Rating Strengths * Experienced promoters and satisfactory track record of operations: The company is into same line of business since 2004 and thus has satisfactory track record of operations of around 13 years. Due to satisfactory track record of operations the company has established satisfactory relationship with its clients. Furthermore the key promoter; Mr. Prakash Kumar Ghosh has around 20 years of experience in the rice milling industry, looks after the day to day operations of the company. He is supported by other directors Mr. Pushpal Kumar Ghosh, Ms. Jyotsna Ghosh and Ms. Anita Ghosh who are also having long experience in the same line of business. MJRPL was initially set up as a proprietorship firm in 1993 by the Ghosh family of West Bengal. However, it was reconstituted as a private limited company in October 2004. Since its inception, the company has been engaged in rice milling business and its plant is located in Malda, West Bengal with aggregate installed capacity of 46, 800 metric ton per annum. The company has also set up a rice bran oil extraction unit with aggregate installed capacity of 45,000 metric ton per annum and the same became operational from July 2014. The company procures its raw material (paddy) from local market and sells its finished products within Eastern India. Rice bran, a by-product obtained during rice milling process, is used for oil extraction. KHWAHISH MARKETING: CARE Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Khwahish Marketing Private Limited (KMPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 7.50 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category Short Term Bank 1.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated October 22, 2019, placed the ratings of KMPL under the 'issuer non-cooperating' category as KMPL had failed to provide information for monitoring of the rating. KMPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and an email dated November 24, 2020, November 6, 2020. 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. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Detailed description of the key rating drivers At the time of last rating on October 22, 2019, the following were the rating weaknesses: Key Rating Weaknesses * On-going delays: The ratings take into account the ongoing delays in meeting the debt obligations. KMPL was incorporated in 2004 and is currently being managed by Mr. Prashant Sharma. The company is engaged in the trading of iron and steel products such as hot rolled coils. The company procures the product from manufacturers located in Delhi and nearby regions. The company sells its products through commission agents as well as directly to traders located in Delhi and nearby regions. KISH EXPORTS: CARE Reaffirms B+ Rating on INR11cr LT Loan --------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of Kish Exports Limited (KEL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank Facilities 11.00 CARE B+; Stable Reaffirmed Detailed Rationale & Key Rating Drivers The rating of KEL continues to remain constrained by small scale of operations, elongated operating cycle and stretched liquidity position of the company. The rating further constrained on account of highly competitive and fragmented industry resulting in stiff competition coupled with changing fashions trends, fortunes linked to the textile industry and foreign Exchange fluctuation risk. Further, the ratings, continue to derive comfort from experienced management and long track record of operations, moderate profitability margins and comfortable capital structure. Key Rating Sensitivity Positive Factors * Sizable improvement in total operating income to INR50.00 crore and above on a sustained basis. * Improvement in operating cycle of below 90 days on sustained basis Negative factors * Deterioration in overall gearing level above 1.50x on sustained basis. Detailed description of the key rating drivers Key Rating Weaknesses * Small scale of operations: The scale of operations of the company stood small as marked by total operation income and gross cash accrual at INR28.67 crore and INR2.01 crore respectively for FY20 (FY refers to period April 1 to March 31; based on provisional results) as against INR22.80 crore and losses respectively for FY19. The improvement in the TOI was on account of higher intake from the existing customers. Further, the company's net worth base stood moderate at INR48.89 crore as on March 31, 2020. The small scale of operations limits the company's financial flexibility in times of stress and deprives it of scale benefits. For the period FY18-FY20, KEL's total operating income grew from INR20.76 crore to INR28.67 crore owing to higher intake from the customers. Further, the company has achieved a total operating income of ~Rs.7.00 crore for 7MFY21 (refers to period April 1 to October 31; based on provisional results). * Elongated operating cycle: The operations of the company are working capital intensive in nature marked by an operating cycle of 117 days for FY20 and 184 days for FY19 owing to high inventory days. The manufacturing of kids garments and women apparels is an extensive production process and the company is required to maintain adequate inventory at each processing stage for smooth running of its production processes like cutting, knitting, checking, linking, washing, steam pressing and packaging which results in inventory holding period of around 200 days and 263 days for FY20 and FY19 respectively. Also, the company maintains inventory of the fabric used generally for manufacturing purpose resulting in high inventory period. KEL offers reasonable credit period of around 2-3 months to its customers as majority of them are large size players who possess high bargaining power. Besides, the company receives credit period of around 3-4 months from its suppliers resulting in an average creditor's period of around 140 days for FY20 as against 149 days for FY19. The high working capital requirements were met largely through bank borrowings which resulted in almost 90% utilization of its sanctioned working capital limits. * Highly competitive and fragmented industry resulting in stiff competition coupled with changing fashions trends: KEL operates in a highly fragmented industry wherein there is presence of a large number of players in the unorganized and organized sectors. There are number of small and regional players catering to the same market which has limited the bargaining power of the company and has exerted pressure on its margins. The apparel sector is highly dependent on fashion trends, consumer spending habits as well as economic cycles. Therefore, the companies need to manage their inventories according to fashion and changing trends. At times, a fashion is short-lived, thus there is a risk of inventory getting obsolete and does not meet the taste and preferences of the customers leading to losses. * Fortunes linked to the textile industry: Indian textile industry which is the second largest employer after agriculture and accounts for 4% of the GDP is inherently cyclical in nature. Any adverse changes in the global economic outlook as well as demand-supply scenario in the domestic market directly impacts demand of the textile industry. Textile industry as a whole remains vulnerable to various factors such as fluctuations in prices of cotton, mobilization of adequate workforce and changes in government policies for overall development of the textile industry. Any significant changes in such factors will have direct impact on the business operations of the company. * Foreign Exchange Fluctuation Risk: The company is mainly focused in the export market and its export contribution to total sales stood at ~90% for FY20 and FY19. The raw material is completely procured from domestic markets. With initial cash outlay for procurement in domestic currency and significant chunk of sales realization in foreign currency, the company is exposed to the fluctuation in exchange rates. The company doesn't have any policy to hedge its foreign currency risk. * Impact of Covid-19: The company has witnessed lower consumption of the final products from their customers owing to the pandemic. Once the covid-19 impact is over, the consumption are expected to be enhanced. The major impact of slowdown owing to Covid-19 has been from March onwards and this leads to decline in operating income from March 2020-May 2020. The production of the company was shut in April'2020-May'2020. However, the business operations were resumed in June, 2020. The company faced labour problems in the initial stage of operations and were working with a labour capacity of 25%. The situation improved overtime and the company is currently working with a capacity of around 60%. It has recorded a TOI of INR7.00 crore till October 31, 2020 and has an order book of INR9.00 crore in hand. Moreover, the realization has also been affected due to the Covid-19 and the same is expected to speed up. Liquidity position: Stretched The liquidity is stretched as marked by highly utilized bank limits to the extent of ~90% for the past twelve months. However, the repayment obligations stood low amounting to INR0.50 crore in FY20 as against gross cash accruals of Rs.2.01 crore in FY20. The cash and bank balances stood modest at INR4.83 crore as on March 31, 2020. The company has not availed moratorium from March –August 31, 2020 as provided by the bank in lines with RBI guidelines in wake of COVID-19. Key Rating Strengths * Experienced management with long track record of operations: KEL is directed by Mr. Mohinder Kumar Lakhwani, Mr. Renu Lakhwani and Mr. Paresh Nayar. Mr. Mohinder Kumar Lakhwani is a chartered accountant and has accumulated experience of more than two decades through his association with this entity and other associate. He is further supported by Mr. Renu Lakhwani and Mr. Paresh Nayar having an experience of nearly more than two decades respectively through their association with this entity and other associate. KEL has been operating in the textile industry for nearly more than two decades, which aid in establishing a healthy relationship with both customers and suppliers. * Moderate Profitability margins: The profitability margins of the company stood moderate for the past three years ending FY20.The profitability margins of the company are directly associated with pricing and designing aspect of the order. The profitability margins of the company are improving for the past three financial years FY18-FY20 as marked by improvement in PBILDT margin of 11.10% in FY20 as against 5.75% in FY19.The improvement in the PBILDT margin was on account of lower proportion of material cost in FY20. Further, the improvement in PAT margins was in line with the PBILDT level of the company. * Comfortable capital structure: As on March 31, 2020, the debt profile of KEL's comprises of vehicle loan of INR0.02 crores, term loans from NBFCs of INR3.45 crore, working capital borrowings of INR7.05 crores and unsecured loans of INR3.69 crores. The capital structure of the company remained comfortable as marked by overall gearing ratio which stood at 0.29x as on March 31, 2020 and as on March 31, 2019 owing to accretion of profits to the reserve. Kish Exports Limited (KEL), incorporated in December 22, 1993 and is being promoted and managed by Mr. Mohinder Kumar Lakhwani, Mr. Renu Lakhwani and Mr. Paresh Nayar. Kish Exports Limited is an export oriented company engaged in the manufacturing and export of readymade garments mainly for women and kids. The manufacturing process of the company is done in unit located in Gurgaon, Haryana having combined installed capacity of 6,00,000 pieces annually. It exports majority of its garments in Africa, Europe, Spain, and UK directly. However, the company procures orders through a buying agency and the orders are executed as per the specifications and designs of the customers. Also, the company has a group concern which is also in the same business namely Ishvar International. Ishvar International is engaged in manufacturing and export of garments. MCNALLY BHARAT: CARE Keeps D on INR43.5cr Loans in Not Cooperating ------------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Mcnally Bharat Engineering Co Ltd (MBEL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cumulative 43.50 CARE D (RPS); ISSUER NOT Redeemable COOPERATING; Rating continues Preference to remain under ISSUER NOT Shares COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated September 6, 2019, continued the ratings of MBEL under the 'issuer non-cooperating' category as MBEL 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. MBEL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter dated August 17, 2020. 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. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. Detailed description of the key rating drivers At the time of last rating on September 6, 2019, the following were the rating strengths and weaknesses (updated for the information available from stock exchange filings): Key Rating Weaknesses * Delays in debt servicing by the company: The liquidity position of the company continues to be stressed due to losses incurred and stretched operating cycle. This has led to delays in servicing of debt obligations. The operating cycle has been stretched due to high collection period. * High overall gearing ratio: The capital structure of MBEL is highly leveraged due to erosion of net worth resulting from continuing losses and high debt level. MBEL, incorporated in 1961, based in Kolkata, is engaged in engineering turnkey project execution. It belongs to the B. M. Khaitan group. MBEL has completed large number of turnkey projects in different areas of its operations like bulk material handling, ash handling, port handling, mineral beneficiation plant, water management, road construction and maintenance, structural fabrication, erection, piping, utilities, etc. METROPOLE VINIMAY: CARE Lowers Rating on INR26.50cr LT Loan to B+ ----------------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Metropole Vinimay Private Limited (MVPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 26.50 CARE B+; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category and Revised from CARE BB-; Stable Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated October 30, 2019 placed the ratings of MVPL under the 'issuer non-cooperating' category Metropole Vinimay Private Limited had failed to provide information for monitoring of the rating. Metropole Vinimay Private Limited continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated November 19, 2020, November 24, 2020. 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. Further banker could not be contacted. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above ratings. The long term rating has been revised by taking into account non-availability of information and no due-diligence conducted due to non-cooperation by Metropole Vinimay Private Limited Limited with CARE'S efforts to undertake a review of the rating outstanding. CARE views information availability risk as a key factor in its assessment of credit risk. Further, the ratings continue to remain constrained owing by Short track record of entity coupled with modest scale of operations, Leveraged capital structure, Working capital intensive nature of operations and Competitive nature of industry. The ratings, however, continue to take comfort from experienced directors and moderate profitability margins. Detailed description of the key rating drivers At the time of last rating on October 30, 2019, the following were the rating weaknesses and strengths: Detailed description of the key rating drivers Key Rating Weaknesses * Short track record of entity coupled with modest scale of operations: The company started its commercial operations from February, 2017 and has a short track record in this business as compared to other established players. Further, the scale of operations as marked by total operating income and gross cash accrual stood modest at INR89.56crore and INR3.33crore respectively for FY19 (FY refers to period April 1 to March 31). The modest scale limits the firm's financial flexibility in times of stress and deprives it from scale benefits. * Leveraged capital structure: The capital structure of the company stood leveraged as on past two balance sheet dates ending March 31, '18 – '19 mainly on account of debt funded capex undertaken by the company coupled with high reliance on external borrowings to meet working capital borrowings. Further, owing to high debt levels; the debt service coverage indicators marked by interest coverage and total debt to gross cash accrual stood weak at 2.37x and 8.58x respectively for FY19. * Working capital intensive nature of operations: The company is engaged in refining of rice bran oil, it procures majority of its raw material, i.e., crude rice bran oil during October–January as the same is available in abundance and lower prices during the tenure due to easy availability. The company offers a credit period of around 20 days to its customers. It majorly relies on external borrowings to fund its daydo-day operations, thereby resulting in higher utilization of working capital limit. * Competitive nature of industry: The specific food habits of different regions in India have led to preferences of different types of edible oil. Localization of product offerings has fragmented the industry and lowered capacity utilization, due to large number of players and limited availability of raw material. Further, with presence of various players, the same limits bargaining power which exerts pressure on its margins. Key Rating Strengths * Experienced directors and moderate profitability margins: The company is managed by Mr. Ajay Kumar Agrawal and Mr. Madan Lal Agrawal. Mr. Ajay is a post graduate and Mr. Madan is a graduate in qualification. They both have around a decade of experience in oil refinery industry though his association with Rosemerry Solvent Private Limited. The profitability margins of the company as marked by PBILDT and PAT margin stood moderate at 7.38% and 1.87% respectively for FY19. Varansi, Uttar Pradesh based Metropole Vinimay Private Limited (MVPL) was incorporated in March, 2007. The company started its commercial operations from February, 2017. It is currently managed by Mr. Ajay Kumar Agrawal and Mr. Madan Lal Agrawal. The company is engaged in the extraction of edible rice bran oil from crude oil in its refinery located in West Bengal with an installed solvent extraction capacity of 100 tonnes per day of rice bran oil as on June 22, 2018. MVPL has a group associate, Rosemerry Solvent Private Limited (RSPL) (incorporated in December, 2008; engaged in extraction of rice bran oil). NAKODA TECHNOFIBE: CARE Migrates D Debt Rating to Not Cooperating ----------------------------------------------------------------- CARE Ratings has migrated the rating on bank facilities of Nakoda Technofibe Private Limited (NTPL) to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 8.48 CARE D; ISSUER NOT COOPERATING; Facilities Rating moved to ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE has been seeking information from NTPL to monitor the rating(s) vide e-mail communications/letters dated October 14, 2020, October 15, 2020, October 29, 2020, November 3, 2020, November 9, 2020, November 18, 2020 and numerous phone calls. However, despite repeated requests, the company has not provided the requisite information for monitoring the ratings. 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 ratings on NTPL's bank facilities will now 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. The rating assigned to the bank facilities of NTPL takes into account the ongoing delays in debt servicing. Detailed description of the key rating drivers At the time of last rating on July 15, 2020, the following were the rating strengths and weaknesses (updated for latest available information i.e. banker interaction): Key Rating Weaknesses * Ongoing delays in debt servicing: As per banker interaction, there are ongoing delays in servicing of its debt obligation by NTPL. Indore (Madhya Pradesh) based Nakoda Technofibe Private Limited (NTPL) was incorporated in 2014 as Private Limited company. NTPL is engaged in the business of cotton ginning, pressing activities and trading of cotton seeds and bales. Company is also engaged in the business of chana processing. The processing plant of the company is located at Indore and has total production capacity of 75 bales per day as on March 31, 2019. OMID ENGINEERING: CARE Keeps D on INR14cr Loans in Not Cooperating ------------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of OMID Engineering Private Limited (OEPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 14.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated September 05, 2019 placed the rating of OEPL under the 'issuer non-cooperating' category as OEPL had failed to provide information for monitoring of the rating. OEPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter dated November 27, 2020. 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. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. Detailed description of the key rating drivers At the time of the last rating on September 5, 2019, following were the rating weaknesses. Key Rating Weaknesses * Ongoing delays in debt servicing: There had been overdraw in the working capital account of the company for more than 30 days. New Delhi-based OEPL, incorporated in October 1983, belongs to the 'Him Group of Companies' and is engaged in the manufacturing of LPG cylinders. The company was initially engaged in the job work activities of painting the cylinders manufactured by its sister concern, Him Cylinders Ltd (HCL; rated 'CARE D; ISSUER NOT COOPERATING'). Subsequently, in July-2001, the company established a facility for manufacturing of LPG cylinders in the Una district of Himachal Pradesh. OEPL is having an installed capacity of 500,000 units per annum as on March 31, 2016 and sells its entire output to the public sector Oil Marketing Companies (OMCs). The Him group, promoted by Mr. Ashok Prakash Raja, is into the manufacturing of LPG cylinders & related products like valves and regulators, manufacturing of steel ingots and real estate business. Over the years, the group has gradually expanded its capacities and diversified into different products. The company has six group concerns, namely HIM Motors Private Limited, HIM Valves and Regulators Private Limited (HVRPL; rated 'CARE D'; ISSUER NOT COOPERATING), HIM Cylinders Limited, HIM Alloys and Steels Private Limited (HASPL; rated 'CARE D'; ISSUER NOT COOPERATING), HIM Colonizers Private Limited and HIM Cements Private Limited. OMKARA POLYPLAST: CARE Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Omkara Polyplast Private Limited (OPPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 15.91 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Long Term/Short 3.00 CARE D/CARE D; ISSUER NOT Term Bank COOPERATING; Rating continues Facilities to remain under ISSUER NOT COOPERATING category Short Term Bank 0.18 CARE D; ISSUER NOT COOPERATING Facilities CARE D; ISSUER NOT COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE has been seeking information from OPPL to monitor the rating vide e-mail communications/letters dated October 5, 2020, October 9, 2020, October 13, 2020 and numerous phone calls. However, despite CARE's repeated requests, the entity has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the publicly available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Further, Omkara Polyplast Private Limited has not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. The rating on OPPL's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Further due diligence could not be contacted. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above ratings. Detailed description of the key rating drivers At the time of last rating in September 20, 2019 the following were the rating strengths and weaknesses: Key Rating Weaknesses: * Ongoing delays in debt servicing: There are on-going delays in the debt servicing of the company and currently the account is classified as Non- Performing Asset (NPA). Omkara Polyplast Private Limited (OPPL), incorporated in August, 2007, as Elegant Dealcomm Private Limited (EDPL) was initially commenced as an investment company dealing in securities and commodities. Subsequently in December 2009, the company was acquired by Mr. Sumit Kumar Agarwal and Mr. Somit Kumar Murarka of Kolkata and undertook a project to set up a unit for manufacturing high density polyethylene (HDPE)/ polypropylene (PP) based woven sacks, fabrics and tarpaulins at Asansol, West Bengal with an installed capacity of 4,752 MTPA. The company commenced manufacturing operations since December 2011 onwards. The product manufactured by OPPL are used for packaging purpose in various industries such as food grain industry, sugar industry, cement industry, salt industry, textile industry etc. P.M.P. TEXTILES: CARE Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of P.M.P. Textiles Spinning Mills Limited (PMP) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 7.90 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category Long Term/Short 6.50 CARE D/CARE D; ISSUER NOT Term Facilities COOPERATING; Rating continues to remain Under ISSUER NOT COOPERATING Category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated September 9, 2019 placed the rating(s) of PMP under the 'Issuer non-cooperating' category as PMP had failed to provide information for monitoring of the rating. PMP continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and email dated November 17, 2020. 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. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. Detailed description of the key rating drivers The rating assigned to the bank facilities of P.M.P. Textiles Spinning Mills Limited (PMP) continue to remained constrained by delays in debt serving. The rating, however continue to derive strength from Experience of the promoters. Key Rating Weakness * Delay in debt servicing: The company has delays in servicing of debt obligations owing to the stretched liquidity position of the company. Key Rating Strengths * Experience of the promoters: PMP is promoted by Mr. Muthuswamy who has been into manufacturing and trading of cotton yarn since 1988. His vast experience and presence in this line of business has been instrumental in creating long-standing relationships with customers and vendors. PMP incorporated in November 1988 is engaged in manufacturing of yarn and has its spinning unit in Dharmapuri, Tamil Nadu. The unit has a total capacity of 39,500 spindles and it manufactures combed and carded ring spun cotton yarns for weaving and knitting. The company produces higher count yarn (80s). The company is managed by Mr. P. Muthuswamy, the Managing Director, who has more than three decades of experience in the business. PARAMOUNT STEELS: CARE Moves D Debt Rating to Not Cooperating ------------------------------------------------------------- CARE Ratings has migrated the rating on bank facilities of Paramount Steels Limited (PSL) to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 10.00 CARE D; ISSUER NOT COOPERATING Facilities Revised from CARE B; Stable and moved to ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE has been seeking information from PSL to monitor the rating vide letter dated November 13, 2020 and e mail communications dated November 12, 2020, November 11, 2020, November 10, 2020 and numerous phone calls. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the publicly available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The rating on Paramount Steels Limited will now 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 ratings. Detailed description of the key rating drivers * Ongoing delays in the servicing of debt obligation: There have been ongoing delays in the servicing of debt obligation. The overdraft limit has remained over utilized for more than 30 days. Paramount Steels Limited (PSL) previously Sriyansh Steel Limited was originally incorporated on June, 1981. The name of the company was changed in March, 1999. PSL was established with an aim to set up a manufacturing facility at Ludhiana, Punjab for manufacturing of steel items like steel rounds, steel bright bars, steel rods, wire drawing etc. with and installed capacity of 30,000 metric tonnes per annum. PURVANCHAL AGRICO: CARE Lowers Rating on INR7cr LT Loan to B ------------------------------------------------------------ CARE Ratings revised the ratings on certain bank facilities of Purvanchal Agrico Private Limited (PAPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 7.00 CARE B; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category and Revised from CARE B+; Stable Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated October 24, 2019 placed the ratings of PAPL under the 'issuer non-cooperating' category as Purvanchal Agrico Private Limited had failed to provide information for monitoring of the rating. Purvanchal Agrico Private Limited continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated November 19, 2020, November 24, 2020. 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. Further banker could not be contacted. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above ratings. The long term rating has been revised by taking into account non-availability of information and no due-diligence conducted due to non-cooperation by Purvanchal Agrico Private Limited Limited with CARE'S efforts to undertake a review of the rating outstanding. CARE views information availability risk as a key factor in its assessment of credit risk. Further, the ratings continue to remain constrained owing by Small though growing scale of operations, Competition from the private dairies and co-operatives. The ratings, however, continue to take comfort from Experienced Promoters, Moderate profitability margins and coverage indicators, comfortable operating cycle. Detailed description of the key rating drivers At the time of last rating on October 24, 2019, the following were the rating weaknesses and strengths: (Updated for the information available from the Registrar of Companies). Detailed description of the key rating drivers Key Rating Weaknesses * Small though growing scale of operations: The operations of the company remained small as evident from total operating income and gross cash accruals of INR17.03crore and INR0.87crore, respectively in FY19 (refers to the period April 1 to March 31). Furthermore, the company's net worth base also remains relatively small at INR3.37crore as on March 31, 2019. The small scale limits the company's financial flexibility in times of stress and deprives it of scale benefits. Though, the risk is partially mitigated by the fact that the scale of operation is growing continuously. For the period FY17-FY19, PAPL's total operating income grew from INR5.02crore to INR17.03crore owing to increase in sale of dairy products. * Competition from the private dairies and co-operatives: The company faces competition from the other private players and co-operative dairy societies with well established brands, as well as from the un-organized sector comprising milk vendors. Other major dairy companies are also entering into the manufacturing of value added milk products on account of increasing demand in the domestic market. Key Rating Strengths * Experienced Promoters: PAPL's operations are currently being managed by Mr. Om Prakash Rai and Mr. Suvrat Shahi. Mr. Om Prakash Rai is a post graduate and has accumulated experience of three decades in these businesses through his association with this entity. He is supported by Mr. Suvrat Shahi, who has an experience of around one decade through his association with this entity. * Moderate profitability margins and coverage indicators: The profitability margins of the company have stood moderate as marked by PBILDT for the past 3 financial years (FY17-FY19) owing to service sector undertaking with low fixed and variable cost to be absorbed. However high interest cost and depreciation charges restricted the net profitability of the company below unity for the past three financial years i.e. FY17-FY19. Further, owing to moderate profitability levels resulting in moderate GCA levels; the debt service coverage indicators remained moderate as marked by interest coverage and total debt to GCA of 3.77x and 6.73x during FY19. * Comfortable operating cycle: The operating cycle of the company has stood comfortable at 4 days for FY19. The company generally maintains inventory in the form of raw material for smooth production process and finished goods to meet the immediate demands of its customers resulting in an average inventory holding of 12 days. The company maintains adequate inventory to meet the immediate demand of its customers resulting in an average collection period of 5 days in FY19. The company generally purchases its raw material on advance and cash basis with a maximum credit period of 13 days in FY19. Purvanchal Agrico Private Limited (PAPL) is a private limited company incorporated in March 31, 2008. The company is promoted by Mr. Om Prakash Rai and Mr. Suvrat Shahi. PAPL is engaged in renting of its cold storage facility for potatoes and tomatoes to the local farmers in Varanasi with multi chambers having storage capacity of 102000 quintals as on May 31, 2018. PAPL is also engaged in the business of processing of milk and manufacturing of milk products at its plant at Inayatpur, Ghazipur, Uttar Pradesh having an installed capacity of 25000 liters per day as on May 31, 2018. Various products available in the portfolio of the company are skimmed milk powder (SMP), whole milk powder (WMP), dairy whitener (DW), butter, ghee and other milk products. RELIANCE INFRA: CARE Reaffirms D Rating on INR1654.38cr Loan ------------------------------------------------------------ CARE Ratings reaffirmed ratings on certain bank facilities of Reliance Infrastructure Limited (RInfra), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 1,654.38 CARE D Rating removed from Facilities ISSUER NOT COOPERATING category and Reaffirmed Short Term Bank 600.00 CARE D Rating removed from Facilities ISSUER NOT COOPERATING category and Reaffirmed Non-Convertible 600.00 CARE D Rating removed from Debentures ISSUER NOT COOPERATING category and Reaffirmed Non-Convertible 103.00 CARE D Rating removed from Debentures ISSUER NOT COOPERATING category and Reaffirmed Detailed Rationale & Key Rating Drivers The reaffirmation of ratings to bank facilities and instruments of RInfra continues to be constrained by ongoing delays in servicing of debt obligations of the company. Rating Sensitivities Positive rating sensitivities * Timely servicing of debt obligation (i.e. principal and interest) of the company for more than 90 days. Detailed description of the key rating drivers Key Rating Weaknesses * Ongoing delays in debt servicing: There are ongoing delays in servicing of debt obligations of the company on account of weak liquidity profile. RInfra is the flagship company of the Reliance ADAG (controlled by Mr. Anil D. Ambani). RInfra is into developing projects through various Special Purpose Vehicles (SPVs) in sectors such as Power, Roads and Metro Rail in the Infrastructure and the Defense sector. The company also provides Engineering, Procurement and Construction (EPC) services for developing power and road projects. RMJ MODERN: CARE Lowers Rating on INR11.89cr LT Loan to B- ---------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of RMJ Modern Rice Mill (RMJ), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 11.89 CARE B-; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category and Revised from CARE B+ Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated September 3, 2019, placed the rating(s) of RMJ under the 'issuer non-cooperating' category as RMJ Modern Rice Mill had failed to provide information for monitoring of the rating. RMJ continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and email dated November 12, 2020. 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. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. The revision in the rating takes into account the non-availability of requisite information due to non- cooperation by RMJ with CARE's efforts to undertake a review of the outstanding ratings as CARE views information availability risk as key factor in its assessment of credit risk profile. Detailed description of the key rating drivers At the time of last rating on September 3, 2019 the following were the rating strengths and weaknesses: Key Rating Weakness * Marginal growth in the total operating income and fluctuating profit margin: The total operating income of RMJ grew marginally by 9% in FY15 (refers to the period April 1 to March 31) over FY14 due to more orders on the back of expansion of client base. This also resulted in improvement of PBILDT margin by 71 bps despite the increase in marketing expenses, repairs and maintenance cost and other office expenses. Increase in interest cost and depreciation limited the improvement in PAT margin in FY15. In 10MFY16, RMJ achieved a total income of INR36.48 crore and cash accruals of INR1.02 crore. * Moderate capital structure: During FY15, RMJ availed additional term loans and increased utilization of working capital facility. This resulted in increase of total debt which led to marginal deterioration of debt equity ratio and overall gearing ratio from 0.15x and 1.70x, respectively, as on March 31, 2014, to 0.21x and 1.80x as of March 31, 2015, respectively. With the increase in the interest cost, the interest coverage ratio also deteriorated in FY15. Total debt/GCA improved with the growth in cash accruals. * Elongated operating cycle: Given the nature of the business, the average inventory period stood at 65 days in FY15. The paddy is procured from the farmers generally against cash payments or with a minimal credit period of 7 days. It has to extend credit to the wholesalers and distributors (for 21 days) and retailers (for period ranging from 30-45 days) resulting in high working capital utilization reflecting the working capital intensity of business. The collection period deteriorated in FY15 on account of increase of retailer client base. This led to elongated operating cycle which stood at 105 days in FY15 against 84 days in FY14. The working capital facility was utilized in full during the last 12 months ended February, 2016. Key Rating Strengths * Cap-ex completed in 7MFY16: RMJ has expanded its factory building and has installed Auto packaging machine and storage bins ata total cost of INR2.64 crore funded by term loan of INR1.60 crore and remaining from internal accruals. The project commenced in February 2015, with building expansion and the project became operational in October, 2015. This will enable RMJ to reduce labour cost. RMJ, engaged in rice milling business, was established in June 2006, by Mr. J. Thangapandi and Mr. J. Sundarapandian as a partnership firm sharing profits and losses equally. The raw material, paddy is procured from farmers in and around the districts of Madurai, Theni, Usulampati and Sivagangai. RUKSON PACKAGING: CARE Lowers Rating on INR12.10cr Loan to B ------------------------------------------------------------ CARE Ratings revised the ratings on certain bank facilities of Rukson Packaging Private Limited (RPPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 12.10 CARE B; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category and Revised from CARE B+ Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated October 17, 2019, placed the rating(s) of RPPL under the 'issuer not-cooperating' category as RPPL had failed to provide information for monitoring of the rating. RPPL continue to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated October 24, 2020. 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. 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 revision in rating factors in non-cooperation by RPPL and CARE's efforts to undertake a review of the ratings outstanding. CARE views information availability risk as a key factor in its assessment of credit risk. Detailed description of the key rating drivers At the time of last rating on October 16, 2019 the following were the rating strengths and weaknesses (Updated from the information received from Registrar of Company): Key Rating Weaknesses * Modest scale of operations along with moderate profit margins: The overall scale of RPPL has remained modest with TOI of INR21.12 crore in FY19 (vis-à-vis INR18.37 crore in FY18) coupled with low tangible networth thus limiting its financial flexibility. PBILDT margin stood high and the same has remained fluctuating during the period FY17-FY19. While the company has continues to incur net loss in FY17, FY18 & FY19 due to higher depreciation and interest cost. * Deterioration in capital structure and moderately weak debt coverage indicators: RPPL's capital structure has significantly deteriorated with overall gearing reached at 91.05x as on March 31, 2019 (vis-à-vis 54.38x as on March 31, 2018) primarily on account of significant decline in tangible networth along with external debt. Furthermore the debt coverage indicators stood at moderate level primarily on account of high PBILDT margin along with decrease in finance cost during the year. * Working capital intensive nature of operations: RPPL's working capital cycle deteriorated to 134 days in FY19 (vis-à-vis 124 days in FY18) owing to significant decrease in creditors period during FY19. The company has extended more credit period to its customers (mainly consisting of pharmaceutical manufacturers) to maintain long-term relationship. RPPL's receivable period remains elongated at 161 days in FY19 (vis-à-vis 191 days in FY18) to establish goodwill & relationship in the market and get bulk orders. On the other hand, the creditor's days have also improved to 58 days in FY19 (vis-à-vis 103 days in FY18). * Competitive nature of operations coupled with stringent government regulations: The packaging industry has minimal entry barriers, leading to large number of small-sized players in the unorganized sector. This increases the intensity of competition in the industry. The pharma and food industry are major customers of the packaging industry. As both the user industries pertain to health and general well-being of the people at large, the government regulations pertaining to packaging used in both these industries are implemented very strictly. Key Rating Strengths * Vast experience of promoters in the Printing & Packing industry: The promoters of RPPL Mr. Kishin Panjabi have four decades of experience and Mr. Gobind Panjabi has two decades of experience in Printing & Packing industry. Established in 1986 as a private limited company in the name of Jaykesh Salf-Lock Packaging Pvt. Ltd., was taken over by Mr. Kishin Panjabi and renamed as Rukson Packaging Pvt. Ltd. (RPPL) on April 22, 2008. RPPL was promoted by Mr. Kishin Panjabi, Mr. Gobind Panjabi, Ms. Poonam Panjabi & Ms. Anita Panjabi. RPPL is engaged in manufacturing of Cartons & Offset printing on Cathcover, Labels, Leaflets, Posters etc. and its plant is located at MIDC Rabale in Navi Mumbai with an installed capacity to print around 3 crore impressions per annum. SHIVANSH DIAMOND: CARE Keeps D Debt Rating in Not Cooperating ------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Shivansh Diamond Private Limited (SDPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 47.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated December 17, 2019, placed the ratings of SDPL under the 'issuer non-cooperating' category as SDPL had failed to provide information for monitoring of the rating. SDPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter dated November 23, 2020. 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. 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 Shivansh Diamond Private Limited (SDPL) continue to take into account the ongoing delays in the servicing of debt obligations by the company. Detailed description of the key rating drivers At the time of last rating on December 17, 2019, ongoing delays in debt servicing were taken into account. SDPL was established as a proprietorship form named as M/s Shivansh by Mr. .Ashutosh Sharma in 1998. This was later converted into a private limited company in January, 2010 promoted by Mr. .Ashutosh Sharma and Mr. Gunjan Garg. SDPL is engaged in whole-selling and retailing of diamond and studded gold jewellery. The company in October, 2012 started its retail operations from its Karol Bagh showroom. SDPL gets most of its jewellery manufactured on job work basis from Mumbai based jewellery makers. STB EXPORT PVT: Insolvency Resolution Process Case Summary ---------------------------------------------------------- Debtor: STB Export Pvt Ltd 63/3 B Sarat Bose Road 5th Floor Kolkata WB 700025 IN Insolvency Commencement Date: November 24, 2020 Court: National Company Law Tribunal, Kolkata Bench Estimated date of closure of insolvency resolution process: May 23, 2021 (180 days from commencement) Insolvency professional: Ajay Goyal Interim Resolution Professional: Ajay Goyal 1, R.N. Mukherjee Road Martin Burn House 3rd Floor, Room No. 305B Kolkata 700001 E-mail: aaa3india@yahoo.com Last date for submission of claims: To be calculated as 14 days from the date of publication of advertisement. SWASTIK CEMENT: CARE Lowers Rating on INR7cr LT Loan to C --------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Swastik Cement Products Private Limited (SCPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 7.00 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category and Revised from CARE BB-; Stable Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated October 15, 2019 placed the ratings of SCPL under the 'issuer non-cooperating' category Swastik Cement Products Private Limited had failed to provide information for monitoring of the rating. Swastik Cement Products Private Limited continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated November 9, 2020, November 19, 2020. 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. Further banker could not be contacted. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above ratings. The long term rating has been revised by taking into account non-availability of information and no due-diligence conducted due to non-cooperation by Swastik Cement Products Private Limited Limited with CARE'S efforts to undertake a review of the rating outstanding. CARE views information availability risk as a key factor in its assessment of credit risk. Further, the ratings continue to remain constrained owing by Net losses and decline in debt coverage indicators, Small scale of operations, Concentrated customer profile, Sensitive to fluctuating raw material prices and Exposure to cyclical nature of industry. The ratings, however, continue to take comfort from experienced directors, Location advantage. Detailed description of the key rating drivers At the time of last rating on October 15, 2019 the following were the rating weaknesses and strengths: (Updated for the information available from the Registrar of Companies). Detailed description of the key rating drivers Key Rating Weaknesses * Net losses and decline in debt coverage indicators: The company incurred net losses in FY19 for INR(4.88) crore. Further, owing to decline in profitability, the debt coverage indicators as marked by interest coverage and TDGCA deteriorated and stood at (4.05)x and (1.39)x respectively for FY19 as against 1.09x and 34.13x respectively for FY18. * Small scale of operations: The scale of operations of the company remained small as marked by total operating income and gross cash accrual of INR57.07crore and (4.03) crore respectively for FY19 as against INR35.18crore and INR0.18crore for FY18. * Concentrated customer profile: The company has a concentrated customer base as top three customers contributes around 90% of total operating income during the past three financial years (i.e.FY15-FY17). There is no long term contract with the customers but the company has been getting repeat orders since commencement of operations of steel division. Thus, the company largely depends on a narrow base of customers for orders. Any change in procurement policy of these customers may adversely impact the company. * Sensitive to fluctuating raw material prices: Operating margin of the company is highly susceptible to changes in the prices of scrap, sponge iron and pig iron, which are the basic raw materials for the manufacture of steel ingots. Prices of these raw materials are highly volatile as they are influenced by global demand and supply factors. While, the international price trend strongly influences the domestic price trend, the domestic prices do not strictly follow any single global market on a daily basis. * Exposure to cyclical nature of industry: Steel is a cyclical commodity as the steel market is influenced by several macroeconomic factors like strength of the economy and government spending on infrastructure. These factors have a profound influence on public, private and individual demand for steel. Higher demand from user industries during an upswing and slackened demand during a downturn results in higher sensitivity of earnings. Thus, the earnings of SCPL are largely exposed to these volatilities. Key Rating Strengths * Experienced directors: The company is currently managed by Mr. Ajit Kumar Jain and Mr. Rishabh Tulsyan. Both of them are post graduate by qualification and have around two decades and half a decade of experience respectively in the steel industry through their association with SCPL and other associate concern. * Location advantage: SCPL is situated in an industrial cluster in eastern Uttar Pradesh. Raw material availability is easy as procurement of raw material is done locally and the finished product is supplied to steel mills (manufacturing MS bars) located in the vicinity. Thus, proximity to suppliers and customers helps generate higher revenue due to local orders and leads to saving in transportation cost and time, and consequently reduces inventory holding period. Uttar Pradesh based SCPL was incorporated in February, 1980. The company is currently being managed by Mr. Ajit Kumar Jain and Mr. Rishabh Tulsyan. The firm primarily engaged in the manufacturing of Mild Steel (MS) ingots. The company has its manufacturing facility located at Chandauli, Uttar Pradesh with installed capacity of 36000 MTPA as on March 31, 2018. Also, the company is engaged in manufacturing of wheat flour on job work basis for Swastik Grains Corporation (associate firm) having installed capacity of 75000 metric ton per annum as on March 31, 2018.SCPL has an associate concern namely Swastik Grains Products Private Limited, which was incorporated in March, 2007 and is engaged in processing of wheat flour. VRC SHORELINE: Insolvency Resolution Process Case Summary --------------------------------------------------------- Debtor: VRC Shoreline Enerprises Private Limited 8-2-268/1/A/8 Aurora Colony, Venture 2 Road No. 3, Banjara Hills Hyderabad Telangana 500034 Insolvency Commencement Date: December 8, 2020 Court: National Company Law Tribunal, Hyderabad Bench Estimated date of closure of insolvency resolution process: June 6, 2021 Insolvency professional: Ritesh Mittal Interim Resolution Professional: Ritesh Mittal Sanjay Kumar Kothari & Co. 205, Doshi Chambers Basheerbagh, Hyderabad Telangana 500029 E-mail: mrriteshmittal@gmail.com vrcshorelinecirp@gmail.com Last date for submission of claims: December 25, 2020 [*] INDIA: IBA Seeks Relaxations in Debt Restructuring Scheme ------------------------------------------------------------- CNBC-TV18 reports that banks have sought the Reserve Bank of India's permission to keep accounts of borrowers who are eligible for relief under the August 6 circular in a standstill until the date of invocation of restructuring, multiple people aware of the talks told CNBC-TV18. CNBC-TV18 relates that the Indian Banks Association wrote to RBI on behalf of banks on Dec. 9, requesting the regulator to allow standstill status for eligible borrowers, said people in the know. The request was made as banks fear that several borrowers' accounts may slip into a non performing asset (NPA) category the moment Supreme Court vacates its September 3 order on asset classification for accounts under the six-month moratorium. This, in turn, would make such borrowers ineligible for restructuring. As an interim measure considering the hardships of the pandemic and moratorium, the top court stated that "accounts which were not declared NPA till August 31, 2020, shall not be declared NPA till further orders," CNBC-TV18 relays. CNBC-TV18 says the August 6 restructuring circular of RBI states that only those borrowers whose accounts were not more than 30 days past due, or Special Mention Account-0 (SMA-0) category on March 1, 2020, would be eligible for relief under the scheme. Further, RBI granted a six-month moratorium relief to borrowers impacted due to COVID-19 from March to August 2020, during which time their accounts were kept as standard and not downgraded. "What happens when the Supreme Court lifts the stay on NPA classification in the next hearing on 14th (December 14)? Then many accounts will slip and create problems for us," said a senior banker involved in the deliberations. "As it is there are very few restructuring requests, and without standstill, many will become eligible and not be able to get restructuring," said another person quoted earlier. CNBC-TV18 has learned that so far, only 1.10 lakh borrowers have come forward to seek restructuring from lenders under the August 6 recast circular. Of this, the State Bank of India alone has received requests to restructure approximately 40,000 MSME loans, and about 4,000 retail loans so far. As for the large accounts with an exposure of more than Rs 1,500 crore, no more than 10 or at most 15 borrowers will end up applying, said senior banking executives. The window to apply for the one-time restructuring scheme announced by RBI ends on December 31, 2020, and the last date of implementation will end on June 30, 2021, CNBC-TV18 adds. =============== M A L A Y S I A =============== AIRASIA GROUP: Unit to Raise US$123MM in Rights Issue, New Shares ----------------------------------------------------------------- Reuters reports that AirAsia X Bhd (AAX) said on Dec. 14 it proposed raising MYR500 million ($123 million) through a rights issue to existing shareholders and a share subscription for new investors. Reuters relates that the airline, the long haul arm of AirAsia Group, said in a stock exchange filing that it intends to raise up to MYR300 million through the rights issue. It also proposed issuing and allotting new shares through subscription by a special purpose vehicle, of up to MYR200 million shares, and an option for the vehicle to subscribe for additional 15% of the enlarged total number of AAX shares, Reuters relays. According to Reuters, the fundraising will be undertaken after the completion of a $15.3 billion of debt restructuring scheme proposed in October to enable AAX to continue as a going concern, for which the airline is seeking the approval of its creditors. AAX said it is now seeking to further reduce its share capital by 99.9%, shrinking the issued share capital to MYR1.53 million. It previously proposed a reduction by 90%, Reuters says. The credit arising from the proposed share capital reduction will be used to offset part of its accumulated losses, it said. "Shareholders funds after the capital reduction remains negative but the consolidation of shares post-capital reduction will provide a platform to seek fresh funding from existing shareholders," the airline, as cited by Reuters, said in a statement. Several creditors have intervened in the restructuring proceedings, and the airline said it will continue to engage with them to hopefully allay their concerns, Reuters notes. "The debt restructuring scheme is a prerequisite for the recapitalisation of the Company . . . and a comprehensive reset of the airline is required to provide a platform to rebuild and a vehicle attractive enough for investors to invest in," it said. The alternative to the scheme is a liquidation of the airline without any returns to creditors, it said. About AirAsia AirAsia Berhad provides low-cost air carrier service. The company provides services on short-haul, point-to-point domestic and international routes. AirAsia, headquartered in Malaysia, operates from hubs in Malaysia, Thailand, Indonesia, Philippines and India. As reported in the Troubled Company Reporter-Asia Pacific on July 9, 2020, auditor Ernst & Young said the carrier's ability to continue as a going concern may be in "significant doubt." In a statement to the Kuala Lumpur stock exchange, Ernst & Young said AirAsia's current liabilities already exceeded its current assets by MYR1.84 billion at the end of 2019, a year when it posted a MYR283 million net loss, Bloomberg News disclosed. That was before the coronavirus crisis, which has further hit the carrier's financial performance and cash flow. ================= S I N G A P O R E ================= HIN LEONG: Lim Family, BP Sued for $313 Million on Oil Deals ------------------------------------------------------------ Alfred Cang at Bloomberg News reports that Bank of China Ltd. has sued BP Plc in Singapore over its alleged role in fabricating oil deals with collapsed trader Hin Leong, in the latest effort by a creditor to recover losses after one of the biggest trading scandals in decades. The Chinese bank requested that BP repay $125.7 million that it withdrew from the lender earlier this year based on sales of gasoil cargoes to Hin Leong, according to documents provided by the Supreme Court of Singapore, Bloomberg relays. The deals were part of "fictitious purchase scheme conspiracy" to maintain Hin Leong's liquidity since no real transactions took place, the bank said. The lender also demanded $187.2 million from Hin Leong Trading Pte's founder, Lim Oon Kuin, and his two children, the documents, as cited by Bloomberg, showed. The total sum includes the deals linked to BP and some other overdue payments on short-term loans, or letters of credit. BP strongly refutes the allegations by Bank of China and will defend its position, the company said in a statement, without elaborating, Bloomberg relates. Lim has earlier denied forging documents in a case brought by HSBC Holdings Plc, saying they were "mistakenly" issued. Singapore, a major-oil trading hub, was shook by defaults and alleged fraud this year, roiling lenders who finance the opaque world of commodities trading in the city state, Bloomberg states. While the main protagonists were medium-sized trading firms such as Hin Leong, some leading global firms have also been ensnared in the debacle. It's not the only hit Bank of China has taken this year on oil. Earlier this year it agreed to repay some investors after one of its oil-linked trading products collapsed amid a plunge crude prices. Bloomberg says Hin Leong's creditors, which also include HSBC and Singapore's DBS Group Holdings Ltd., are fighting to recover funds from the insolvent firm, which has $3.5 billion in outstanding debt. Bank of China's case, filed in late November, came after HSBC and the trader's court-appointed managers PricewaterhouseCoopers started taking legal action against the Lim family. According to Bloomberg, the disputed gasoil deals took place in the first two months of this year. BP withdrew a total of $125.7 million on three letters of credit in early February from Bank of China, the court document showed. Hin Leong purchased a combined 1.5 million barrels of gasoil from BP in the deals and the oil major was able to present documents to prove the authenticity of the trades. The bank was later informed by Hin Leong's judicial managers that these trades were fabrications backed by non-existent cargoes financed by at least 27 letters of credit, including the three from Bank of China, Bloomberg recalls. The suit alleges that Hin Leong was able to maintain a semblance of financial stability and liquidity by selling and repurchasing forged cargoes backed by letters of credit worth $624 million. "HLT fabricated documents on a massive scale," Bank of China said in its suit, Bloomberg relays. "The forged documents enabled HLT to mislead banks into extending financing to it and also acted as supporting documentation for fictitious gains or profits." Bank of China cited the court-appointed manager as saying that the trading firm sold gasoil to BP, which the oil major then sold back to Hin Leong at a higher price, Bloomberg says. Given the gap between the sales price and purchase prices and the short time period between the deals, it appears that the transactions were intended solely to provide liquidity for Hin Leong, the bank said, citing the appointed managers. Bloomberg adds that Bank of China claimed that it wasn't aware of the "simultaneous sale" and buy-back transactions, alleging that documents were forged to "induce" the bank to make payments. It wouldn't have made payments if it had known that the representations were false, it said. About Hin Leong Hin Leong Trading (Pte.) Ltd. provides petroleum products and transportation services. The Company offers oil, lubricants, grease, and diesel products, as well grants storage, terminalling, trucking, and marine logistics services. Hin Leong Trading serves customers globally. Hin Leong Trading and shipping unit Ocean Tankers (Pte.) Ltd. filed for court protection from creditors on April 17, 2020, as the former struggles to repay debts of almost US$4 billion. Hin Leong posted a positive equity of US$4.56 billion and net profit of US$78 million in the period ended October 31, 2019, according to the people, who asked not to be identified as the matter is sensitive, Bloomberg News reported. But Hin Leong told its creditors that total liabilities reached US$4.05 billion as of early April, while assets were just US$714 million, leaving a hole of at least US$3.34 billion, according to screenshots of the presentation to a group of bankers seen by Bloomberg News. The balance sheet of the company showed no equity at all as of April 9, 2020, and warned that "figures obtained from the company are subject to verification," Bloomberg News added. On April 27, 2020, the Company was granted interim judicial management by the Singapore High Court. Goh Thien Phong and Chan Kheng Tek of PricewaterhouseCoopers Advisory Services (PwC) have been appointed as interim judicial managers. Ernst & Young (EY), has been appointed interim judicial manager for Ocean Tankers. HYFLUX LTD: JMs in Talks With 14 New Potential Investors -------------------------------------------------------- Lynette Tan at The Business Times reports that the judicial managers of Hyflux and its unit Hydrochem are in talks with 14 new potential investors, and aim to identify a suitable investor by the end of January next year. However, the judicial managers from Borrelli Walsh said on Dec. 15 that they are unable to disclose the identities of these investors, as many of the investors had only recently contacted them, BT relates. The judicial managers added that they had contacted five investors who had previously expressed an interest in Hyflux and Hydrochem, and continue to work with some of those investors, the report relays. Hyflux and Hydrochem were placed under judicial management (JM) by the Singapore High Court on Nov. 16, capping a two-year-long failed attempt to restructure the business. BT notes that the JM application had been filed by an unsecured working group of 19 banks which are owed SGD931 million by Hyflux. The water treatment player also owes SGD900 million to some 34,000 retail investors holding its perpetual and preference shares. On Nov. 24, the judicial managers issued a notice inviting expressions of interest from parties keen to invest in the embattled water treatment player as part of a restructuring process, BT says. Singapore-based Hyflux Ltd -- https://www.hyflux.com/ -- provides various solutions in water and energy areas worldwide. The company operates through two segments, Municipal and Industrial. The Municipal segment supplies a range of infrastructure solutions, including water, power, and waste-to-energy to municipalities and governments. The Industrial segment supplies infrastructure solutions for water to industrial customers. It has business operations across Asia, Middle East and Africa. On Nov. 17, 2020, the High Court of Singapore appointed Hamish Alexander Christie and Patrick Bance of Borrelli Walsh Pte. Limited as joint and several judicial managers of Hyflux Ltd. Borrelli Walsh is the financial adviser of an unsecured working group of banks comprising Mizuho, Bangkok Bank, BNP Paribas, CTBC Bank, KfW, Korea Development Bank, and Standard Chartered Bank, according to The Business Times. The group had applied to put the ailing water treatment firm under judicial management, BT said. ********* 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 2020. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. *** End of Transmission ***