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       T R O U B L E D   C O M P A N Y   R E P O R T E R

                     A S I A   P A C I F I C

          Monday, February 15, 2021, Vol. 24, No. 27

                           Headlines



A U S T R A L I A

CROWN RESORTS: Two Directors Exit Board After Damning Report
DIAMOND OFFSHORE: Bondholders Recover 37% in Debt-for-Equity Plan
EQUESTRIAN AUSTRALIA: Exits Voluntary Administration Process
LJHA (LNS): First Creditors' Meeting Set for Feb. 22
PEPPER RESIDENTIAL NO.21: S&P Raises Cl. F Notes Rating to B+(sf)



C H I N A

CHINA OIL: Moody's Affirms Ba2 CFR & Alters Outlook to Stable
RED STAR: S&P Downgrades ICR to 'BB', Outlook Stable
ZENSUN GROUP: Moody's Lowers CFR to B2 on Weak Sales Performance


I N D I A

AISHWARYA CONSTRUCTION: CARE Reaffirms B+ Rating on INR49.5cr Loan
ASHTVINAYAK LEISURE: CARE Lowers Rating on INR10.58cr Loan to B-
CARONA KNITWEAR: CARE Keeps D Debt Ratings in Not Cooperating
CHD DEVELOPERS: CARE Keeps D Debt Ratings in Not Cooperating
DANEM HEAVY: CARE Lowers Rating on INR30cr LT Loan to B

DIVYA SIMANDHAR: CARE Lowers Rating on INR34.75cr Loan to D
EUROTEK ENGINEERING: CARE Cuts Rating on INR6.75cr Loan to B
GALAXY STONEMART: CARE Reaffirms B- Rating on INR3.0cr LT Loan
GREATWELD ENGINEERING: Insolvency Resolution Process Case Summary
GUJARAT STEEL: CARE Keeps D Debt Rating in Not Cooperating

HEALTHICO QUALITY: CARE Keeps B- Debt Rating in Not Cooperating
HYDERABAD RING: CARE Keeps D Debt Rating in Not Cooperating
JCT LIMITED: CARE Lowers Rating on INR90r LT Loan to D
KANISHKDEEP STOCK: Insolvency Resolution Process Case Summary
PADMAVATI INTERMEDIATES: Insolvency Resolution Case Summary

QUADSEL SYSTEMS: CARE Keeps D Debt Ratings in Not Cooperating
RADHE FOODS: CARE Lowers Rating on INR5.85cr LT Loan to D
RAMEN DEKA: CARE Migrates D Debt Rating to Not Cooperating
RANGRAJ PROPERTIES: Insolvency Resolution Process Case Summary
RATNA ENGINEERING: CARE Keeps D Debt Ratings in Not Cooperating

RK WIND: CARE Lowers Rating on INR9.73cr LT Loan to B+
SAI LEASING: CARE Keeps D Debt Rating in Not Cooperating Category
SAISUDHIR ENERGY: CARE Withdraws C Rating on LT Bank Facilities
SATYA SUBAL: CARE Lowers Rating on INR8.85cr Long Term Loan to D
SATYESHWAR HIMGHAR: CARE Reaffirms D Rating on INR12.19cr Loans

SHAKTI MOTORS: Insolvency Resolution Process Case Summary
SHINE TEXTILE: CARE Lowers Rating on INR12.50cr LT Loan to B+
SKP STEEL INDUSTRIES: Insolvency Resolution Process Case Summary
SUPREME BATTERIES: CARE Keeps D Debt Ratings in Not Cooperating
SUPREME MILLS: CARE Lowers Rating on INR5.75cr LT Loan to B

TAU AGRO: CARE Reaffirms B+ Rating on INR15cr LT Loan
TIERRA FOOD: Insolvency Resolution Process Case Summary
VENKATACHALAPATHY SAGO: CARE Lowers Rating on INR10cr Loan to B-
[*] INDIA: Court Issues Notice in Appeal vs. NCLAT Order on NPA


I N D O N E S I A

TOWER BERSAMA: S&P Upgrades ICR to BB+ on Business Resilience


N E W   Z E A L A N D

PACIFIC AEROSPACE: Financial Issues Described as 'Tragic'
STA TRAVEL: Court May Decide Fate of Money Owed to NZ Customers


S I N G A P O R E

AVATION PLC: S&P Cuts ICR to 'CC', Remains on CreditWatch Negative
HIN LEONG: Jurong Port to Take Over Lim Family's Stake in Terminal
SEN YUE: Chairman May Have Breached Fiduciary Duties, Review Finds


S O U T H   K O R E A

[*] SOUTH KOREA: Public Transit Operators in Deep Financial Trouble

                           - - - - -


=================
A U S T R A L I A
=================

CROWN RESORTS: Two Directors Exit Board After Damning Report
------------------------------------------------------------
Reuters reports that two Crown Resorts Ltd directors with links to
major shareholder James Packer resigned on Feb. 10, the first heads
to roll after the Australian casino operator was deemed unfit to
hold a gambling licence for its new Sydney casino.

Reuters relates that the upheaval in the wake of a report
commissioned by the state gambling watchdog raised speculation
among analysts that the AUD6.6 billion ($5.1 billion) company was
in play as a takeover target.

The report, published on Feb. 9, cited Crown's links to organised
crime and the "dysfunctional" influence of Mr. Packer as it
declared the company unsuitable to hold a gaming licence for the
casino in its newly opened AUD2.2 billion Sydney waterfront resort
tower, according to Reuters.

The former judge who headed the inquiry, Patricia Bergin,
recommended a 10% shareholding limit for all casino operators in
New South Wales state, a condition that would require founder
Packer to sell down his 36% stake, Reuters says.

Reuters relates that Mr. Packer's private company CPH said the
departures of the executives, and the shift by a third director to
independent status, would give Crown "clear air to work with
(gaming regulator) ILGA in the execution of its announced reform
agenda, and become a model casino operator".

The CPH statement did not address Packer's shareholding or plans.

"The transaction creates an opportunity for trade buyers or private
equity to secure a meaningful stake from a forced seller," Citi
analysts said in a note, Reuters relays. They added that increased
regulatory scrutiny would mean "constrained revenue and elevated
costs" for the company.

Crown has said it planned to work with the NSW Independent Liquor &
Gaming Authority (ILGA) after the report indicated that a sweeping
overhaul of its board and business could see its licence
reinstated, adds Reuters.

Reuters says the company has not commented on the future of any
other directors, including Chief Executive Ken Barton, who was
heavily criticised in the report.

Crown was granted a gambling licence for the Sydney tower several
years ago, but the ILGA suspended it last year pending the results
of the year-long inquiry, Reuters notes.

As well as rife money laundering, the inquiry heard about a
management structure where Mr. Packer requested frequent trading
updates despite holding no board or management position, while
attempting to take the company private - without disclosing the
arrangement to other shareholders, adds Reuters.

According to Reuters, ILGA chair Philip Crawford said he planned to
correspond directly with Crown chair Helen Coonan on a reform
process he expected to take months.

"For any regulator and any government, they're pretty scary terms,"
Mr. Crawford told reporters about the report's finding the company
had been infiltrated by organised crime. "They've got a lot of work
to do to satisfy us."

Mr. Crawford cited a newspaper headline which said Crown needed to
"blow itself up to save itself" and added: "that's probably pretty
close to the mark."

Headquartered in Melbourne, Australia, Crown Resorts Limited
(ASX:CWN) -- https://www.crownresorts.com.au/ -- wholly owns and
operates two of Australia's leading gambling and entertainment
complexes, Crown Melbourne and Crown Perth.


DIAMOND OFFSHORE: Bondholders Recover 37% in Debt-for-Equity Plan
-----------------------------------------------------------------
Diamond Offshore Drilling, Inc., et al., submitted an Amended
Disclosure Statement for their Joint Plan of Reorganization on Feb.
5, 2021.

According to the Amended Disclosure Statement, Class 4 Senior Notes
Claims will recover 37% of their claims, and Class 7 Existing
Parent Equity Interests will recover $3 million.

Lazard estimates the total enterprise value of the Reorganized
Debtors to be approximately $805 million to $1,520 million, with a
mid-point of $1,130 million.

The original Disclosure Statement still had blanks as to the
projected percentage recovery for Class 4, and the enterprise value
estimated by Lazard.

The Amended Disclosure Statement also warns that there is currently
no market for the New Diamond Common Shares and there can be no
assurance as to the development or liquidity of any market for such
securities.

As reported in the Troubled Company Reporter, under the Plan,
holders of Senior Notes Claims will receive 70% of the New Diamond
Common Shares, subject to dilution by the MIP Equity Shares and the
New Warrants, on account of the full equitization of their Senior
Notes Claims pursuant to the Plan. The remaining 30% of the New
Diamond Common Shares shall be issued on the Effective Date to
purchasers of the Exit Notes pursuant to the Private Placements and
the Rights Offerings, subject to dilution by the MIP Equity Shares
and the New Warrants.

Existing Parent Equity Interests will be canceled pursuant to the
Plan, and Holders of Existing Parent Equity Interests will receive
their Pro Rata share of the New Warrants on the Effective Date.

The New Warrants are exercisable into 7% of the New Diamond Common
Shares, subject to dilution by the MIP Equity Shares, struck at a
total enterprise value implying a 100% recovery to Holders of
Senior Notes Claims on the face value of their Senior Notes Claims
(including accrued interest as of the Petition Date).

Class 5 General Unsecured Claims are unimpaired and will recover
100% in the Plan.

A full-text copy of the Amended Disclosure Statement dated February
6, 2021, is available at https://bit.ly/3tLWqws from
PacerMonitor.com at no charge.

                     About Diamond Offshore

Diamond Offshore Drilling, Inc., provides contract drilling
services to the energy industry worldwide. The company operates a
fleet of 15 offshore drilling rigs, including 4 drillships and 11
semi-submersible rigs. It serves independent oil and gas companies,
and government-owned oil companies. The company was founded in 1953
and is headquartered in Houston, Texas. Diamond Offshore Drilling
is a subsidiary of Loews Corporation. The company has major offices
in Australia, Brazil, Mexico, Scotland, Singapore, and Norway.

Diamond Offshore Drilling, Inc., along with its affiliates, filed a
voluntary petition for reorganization under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 20-32307) on April
26, 2020. The petitions were signed by David L. Roland, senior vice
president, general counsel, and secretary.

As of Dec. 31, 2019, the Debtors disclosed $5,834,044,000 in total
assets and $2,601,834,000 in total liabilities.

The case is assigned to Judge David R. Jones.

Paul, Weiss, Rifkind, Wharton & Garrison LLP and Porter Hedges LLP
are acting as the Company's legal counsel and Alvarez & Marsal is
serving as the Company's restructuring advisor. Lazard Freres & Co.
LLC is serving as financial advisor to the Company. Prime Clerk LLC
is the claims and noticing agent.

EQUESTRIAN AUSTRALIA: Exits Voluntary Administration Process
------------------------------------------------------------
Horsetalk.co.nz reports that Equestrian Australia (EA) has exited
the Voluntary Administration process following its Deed of Company
Arrangement (DOCA) coming into effect.

According to the report, Mark Bradley, EA's Chairman of the Board
of Directors, said that Voluntary Administrators Craig Shepard and
Kate Conneely from KordaMentha, have finalised all conditions of
the DOCA and have handed back control of the organisation effective
from February 11. EA had been placed in administration in June,
2020.

"The new EA Board, who were appointed in October 2020, but were
unable to formally act until the end of the DOCA now have the
authority to govern the sport and lead it forward," Horsetalk.co.nz
quotes Mr. Bradley as saying.

"In my short time as Chairman of the new EA Board I have been
impressed by the dedication, passion and resilience shown by the
Australian equestrian community during this very difficult period;
especially the management and staff of EA. This leaves me with no
doubt that we can all work together in the best interest of the
sport to build a better future for Equestrian Australia."

Horsetalk.co.nz relates that Mr. Bradley said the EA Board was
committed to guiding the federation into the next chapter "based on
transparency, open communication and inclusivity".

He said immediate priorities to rebuild would include the
appointment of a new CEO and securing the reinstatement of core
funding from Sport Australia, Horsetalk.co.nz relays.

"I look forward with optimism and confidence that the new Board and
management of EA is well-positioned to work collaboratively with
all EA members, the State Boards, National Discipline and Coaching
Committees to deliver great outcomes for the Australian equestrian
sport community."

Catherine Margaret Conneely and Craig Peter Shepard of KordaMentha
were appointed as administrators of Equestrian Australia on June 9,
2020.

LJHA (LNS): First Creditors' Meeting Set for Feb. 22
----------------------------------------------------
A first meeting of the creditors in the proceedings of LJHA (LNS)
Pty Ltd will be held on Feb. 22, 2021, at 10:00 a.m. via video
conference facilities.

Peter Hillig of Smith Hancock was appointed as administrator of
LJHA (LNS) on Feb. 11, 2021.

PEPPER RESIDENTIAL NO.21: S&P Raises Cl. F Notes Rating to B+(sf)
-----------------------------------------------------------------
S&P Global Ratings raised its ratings on six classes of
nonconforming RMBS notes issued by Permanent Custodians Ltd. as
trustee for Pepper Residential Securities Trust No.21 (PRS21) and
Pepper Residential Securities Trust No.22 (PRS22). At the same
time, S&P affirmed its ratings on 20 classes of notes for Pepper
Residential Securities Trust No.20 (PRS20), PRS21, and PRS22.

The rating actions reflect:

-- S&P's view of the credit quality of the underlying collateral
portfolios, which have been amortizing in line with its
expectations. Each transaction has built up additional credit
support to each class of rated notes.

-- The strength of the cash flows at each respective rating level
that are underpinned by the various structural mechanisms in the
transaction.

-- S&P's expectation that the various mechanisms to support
liquidity within each transaction will remain available for the
rated notes to support the timely payment of interest, including
liquidity facilities, yield reserves, and principal draws.

-- That although several notes have significant buildup of credit
enhancement, S&P's cash-flow modeling indicates some sensitivity
under stresses commensurate with higher rating levels. As losses
remain low, the availability of principal and liquidity draws to
support the lower rated notes in some scenarios can place strain on
the higher rated notes. This is typically observed under scenarios
where defaults are back ended with high prepayments.

-- That S&P has factored into its analysis the arrears performance
of these transactions. For the three transactions, the arrears
performance generally has been higher relative to the Standard &
Poor's Performance Index (SPIN) for nonconforming loans in the past
12 months. As of Nov. 30, 2020, loans greater than 90 days in
arrears represent 3.3% for PRS20, 2.1% for PRS21, and 1.9% for
PRS22. However, losses to date have been minimal and all have been
covered by excess spread. There have been no charge-offs to any of
the notes.

-- The various structural mechanisms that support the
transactions, including a yield enhancement reserve available to
support senior expenses and interest shortfalls on the senior
notes, and the retention mechanism where excess spread is trapped
in a retention reserve and will be paid as a principal payment to
the most subordinated notes at that time, excluding the unrated
class G notes. These mechanisms increase the ratio of assets versus
liabilities creating overcollateralization for the transaction
where losses are allocated initially before being allocated to the
rated notes.

-- That loss of income for borrowers because of COVID-19 might put
upward pressure on mortgage arrears over the longer term. In 2020
we updated our outlook assumptions for Australian RMBS in response
to changing macroeconomic conditions because of the COVID-19
outbreak. The percentage of borrowers with COVID-19-related
hardship arrangements has been decreasing; as of Nov. 30, 2020,
these borrowers make up 4.2% of PRS20, 1.3% of PRS21, and 2.8% of
PRS22.

As vaccine rollouts in several countries continue, S&P Global
Ratings believes there remains a high degree of uncertainty about
the evolution of the coronavirus pandemic and its economic effects.
Widespread immunization, which certain countries might achieve by
midyear, will help pave the way for a return to more normal levels
of social and economic activity. S&P said, "We use this assumption
about vaccine timing in assessing the economic and credit
implications associated with the pandemic. As the situation
evolves, we will update our assumptions and estimates
accordingly."

  Ratings Raised

  Pepper Residential Securities Trust No.21

  Class B: to 'AA+ (sf)' from 'AA (sf)'
  Class D: to 'BBB+ (sf)' from 'BBB (sf)'
  Class E: to 'BB+ (sf)' from 'BB (sf)'
  Class F: to 'B+ (sf)' from 'B (sf)'

  Pepper Residential Securities Trust No.22

  Class E: to 'BB+ (sf)' from 'BB (sf)'
  Class F: to 'B+ (sf)' from 'B (sf)'

  Ratings Affirmed

  Pepper Residential Securities Trust No. 20

  Class A1-a: 'AAA (sf)'
  Class AR-u: 'AAA (sf)'
  Class A2: 'AAA (sf)'
  Class B: 'AA+ (sf)'
  Class C: 'A+ (sf)'
  Class D: 'A- (sf)'
  Class E: 'BB+ (sf)'
  Class F: 'B+ (sf)'
  Class G: Not rated
  
  Pepper Residential Securities Trust No.21

  Class A1-u: 'AAA (sf)'
  Class A1-a: 'AAA (sf)'
  Class A2: 'AAA (sf)'
  Class C: 'A (sf)'
  Class G: Not rated

  Pepper Residential Securities Trust No.22

  Class A1-u: 'AAA (sf)'
  Class A1-a: 'AAA (sf)'
  Class A1-GE: 'AAA (sf)'
  Class A1-GA: 'AAA (sf)'
  Class A2: 'AAA (sf)'
  Class B: 'AA (sf)'
  Class C: 'A (sf)'
  Class D: 'BBB (sf)'
  Class G: Not rated



=========
C H I N A
=========

CHINA OIL: Moody's Affirms Ba2 CFR & Alters Outlook to Stable
-------------------------------------------------------------
Moody's Investors Service has revised the outlook on China Oil and
Gas Group Limited (COG) to stable from negative.

At the same time, Moody's has affirmed COG's Ba2 corporate family
rating and senior unsecured ratings.

RATINGS RATIONALE

"The Ba2 rating affirmation and change in outlook to stable reflect
our expectation for a recovery in oil prices, as well as COG's
stable gas sales growth," says Ralph Ng, a Moody's Vice President
and Senior Analyst.

Moody's expects a modest improvement in oil prices in 2021 will
lead to producers limiting their capital investment plans, with
negative knock-on effects for drilling, oilfield services and
midstream companies. At the same time, overall fuel demand will
rise, but not to pre-downturn levels. Oil price assumptions for
West Texas Intermediate are $40 per barrel in 2021 and $40-$60 for
a medium-term range.

Moody's estimates that COG's oil segment in Canada will likely
record a slight accounting loss in 2020 results given the low oil
prices during the year. This continues to reflect the higher
business risk from COG's overseas upstream operations, compared
with its relatively stable city-gas operations in China, which
constrains the company's credit profile.

That said, the improvement in oil prices will support the recovery
of the profitability of COG's upstream segment over the next 12-18
months, resulting in an improvement in its profitability and cash
flows.

"The pick-up of COG's gas sales growth in China during the second
half of 2020 strengthens its cash flows generation and partly
mitigates the weakness in its overseas operations," adds Ng.

Moody's expects COG's gas sales growth in 2020 will be slightly
stronger than Moody's previous assumption of 5% growth, underpinned
by a strong pick-up in manufacturing activities in China during the
second half of the year. Moody's also expects gas sales growth for
gas distributors will be stable over the next 5 years, given
China's supportive policy and national targets for the gas
utilities sector.

Overall, Moody's estimates the company's adjusted retained cash
flows (RCF)/debt will be between 12%-13% in the next 12-18 months,
a slight improvement from 11% in 2020, which supports its Ba2
corporate family rating and the stable outlook.

In terms of environmental, social and governance (ESG)
considerations, Moody's has taken into consideration COG's core
business of natural gas distribution which is a clean energy source
and has low carbon transition risk. COG faces some level of social
risks in terms of worker health and safety in relations to their
gas distribution project such as pipeline construction. Moody's
considerations for governance risk include company's regulated
business nature, established management track record, and listed
status and adequate disclosure operating track record will mitigate
such risks.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

COG's stable outlook reflects Moody's expectation that the company
will maintain a stable financial profile and keep its upstream
operations at a manageable scale, supported by stable oil prices.
Liquidity at both the consolidated and holding company level
remains relatively adequate.

Upward rating pressure could emerge over time if COG (1)
establishes a proven track record, with timely cost pass-through
for its city gas projects; and (2) shows increased diversification
in revenue, such that the Qinghai Province contributes to less than
30% of its total revenue.

Financial metrics indicative of an upgrade include its retained
cash flow (RCF)/debt above 18% and adjusted funds from operations
(FFO) interest above 4.0x on a sustained basis.

The rating could be downgraded if COG (1) becomes exposed to a
material increase in upstream risk, (2) carries out aggressive
debt-funded expansion projects or acquisitions, (3) faces adverse
regulatory changes, or (4) needs to provide additional funding
support to its upstream business.

Financial metrics indicative of a downgrade include its RCF/debt
falling below 12% and FFO interest cover staying below 2.5x on a
sustained basis, and the total unencumbered cash and liquid
securities held by the holding company and majority-controlled
subsidiaries falling below RMB700 million.

The principal methodology used in these ratings was Regulated
Electric and Gas Utilities published in June 2017.

China Oil and Gas Group Limited (COG) engages in the piped city gas
business, as well as the transportation and distribution of
compressed natural gas (CNG) and liquefied natural gas (LNG). The
company also expanded its footprint to the oil and gas production
business in Canada in July 2014.

COG listed on the Hong Kong Stock Exchange in 1993 and began its
natural gas distribution business in 2002. Xu Tie-liang was the
largest shareholder and chairman with a 25.92% stake as of December
31, 2019.

RED STAR: S&P Downgrades ICR to 'BB', Outlook Stable
----------------------------------------------------
On Feb. 11, 2021, S&P Global Ratings lowered its issuer credit
rating on Red Star Macalline Group Corp. to 'BB' from 'BB+'. At the
same time, S&P lowered its long-term issue rating on the company's
guaranteed notes to 'BB-' from 'BB'.

The stable outlook reflects S&P's view that Red Star is recovering
from the pandemic and will revert to growth in 2021 as it manages
its debt maturities.

An industry slowdown and lingering effects from the COVID-19
outbreak will weigh more heavily on Red Star Macalline Group Corp.
Ltd.'s operations than we previously expected. Red Star is a
China-based owner and operator of malls specializing in home
improvement and furnishing products.

S&P lowered the rating on Red Star because it expects the company's
operational risk to rise as industry growth slows and the effects
from COVID-19 linger. Red Star's business model is less resilient
to sector adversities than we previously expected.

A weaker tenant profile and shorter lease maturities will weigh on
Red Star's business model as the sector decelerates over the next
one to two years. The company's tenants, generally consisting of
small-to midsize furniture retailers, are less resilient to market
downturns and compare weakly with tenants of other retail and
office properties. The lingering hesitation by tenants to renew
contracts also directly affects Red Star's rents, given the annual
renewal cycle.

S&P said, "Red Star's income from its portfolio malls dropped by
about 19% in first three quarters of 2020 and we expect an about
15% decrease for the full year. This is because tenant confidence
has yet to recover and Red Star shared the burden by extending
rent-free periods and granting further rental concessions. We
expect occupancy will likely be around 92% for Red Star's portfolio
malls, while rental reversion will be roughly flat."

Execution risks from Red Star's franchise model will also continue
to plague the company as franchisees face tighter liquidity
conditions. The exposure is evidenced by the impairment loss from
receivables of Chinese renminbi (RMB) 200 million-RMB300 million
each year for the uncollectable portion of initial franchise fees
from smaller regional developers and others.

S&P said, "In our view, Red Star bears part of the execution risks
of building and nurturing new malls before they mature, despite not
being contractually bound, due to reputational risks. We also
expect higher risk in the next few years because new malls to be
built are located in lower-tier cities or recently established
satellite cities or suburbs with higher operational and cash flow
uncertainty."

The operational headwinds will lead to higher financial leverage
and tighter liquidity. In S&P's forecast, Red Star's debt-to-EBITDA
ratio will rise to 7.5x-8x in 2020 and about 7x in 2021, compared
with 6.2x in 2019. This is mainly due to a drop in operating cash
flow and EBITDA, while debt levels mildly rise.  

S&P said, "We expect refinancing risks to be higher than before
because Red Star will rely more on refinancing or rolling over bank
loans to service its debt. Its bond prices have dropped markedly
and the domestic bond market could be less favorable to its credit,
given weakening operating performance. As such, the company may
have to rely on banking facilities or its internal resources to
fund its maturities. As of September 2020, Red Star had RMB6.2
billion cash, and reported debt was RMB47.6 billion (including
RMB16.5 billion short-term debt) owing to aggressive debt-funded
expansions in the past.

"That said, we believe the debt refinancing is backed up by Red
Star's investment properties of RMB90 billion, which are
well-located in higher-tier cities and serve as quality collateral.
Unencumbered assets totaled around 15% of its total investment
properties as of Sept. 30, 2020. Besides, the loan-to-value (LTV)
ratio of assets already pledged was at a relatively low level of
40%-45%. Bank loans secured by investment properties are at a low
cost of about 5%, with a tenor as long as 10-15 years.

"We expect Red Star to slow its capital expenditure (capex) to
preserve cash for debt repayment and refinancing needs. The company
will focus more on organic growth and operational efficiency
instead of debt-funded expansion, given management's deleveraging
targets. However, the company has not laid out the details of its
deleveraging plan. Its share placement plan is under regulatory
review and could also serve as a funding source for debt repayment,
if approved.

"We expect the company's parent, Red Star Macalline Holding Group
Co. Ltd. (RSH), to face higher refinancing pressure, given its
large bond maturities in the next two years. However, RSH had a
stand-alone cash balance of RMB11.6 billion as of September 2020,
which could serve as a buffer to cover RMB5.5 billion bonds due in
2021.

"We expect Red Star to continue to drive the group's credit profile
because its recurring rental business contributes the majority of
the group's EBITDA. Revenue booking of its property development
business is likely to slow due to construction delays caused by the
outbreak of COVID-19 in 2020."

Environmental, social, and governance (ESG) credit factors for this
credit rating change:

-- Health and safety factors.

S&P said, "The stable outlook reflects our view that Red Star's
business operations are gradually recovering from the pandemic and
will revert to growth in the next one to two years. We expect its
occupancy rates and rental collection to stabilize and for
impairment of accounts receivables to not increase significantly.
Also, despite tougher refinancing conditions, we believe it will
manage upcoming debt maturities through bank financing and
internally generated cash flow.

"We could downgrade the company if its operations deteriorate
further such that we believe the business model carries higher
operational risk than we expected. This could be indicated by (1) a
weaker cash collection of franchise fees or a continuous delay in
the initiation or construction of new franchise malls, or (2) a
significant drop in occupancy and negative rental reversions of its
self-owned malls.

"We could also lower the rating if Red Star's financial leverage in
terms of funds from operations (FFO)-to-debt ratio drops to below
7% without signs of improvement, or its liquidity profile further
weakens from the current level.

"We would also consider downgrading Red Star if the ability of the
parent, RSH, to service debt weakens substantially or the volatile
property development business, instead of recurring rental income,
becomes the key driver of the risk profile of the group.

"Although less likely in the next 12 months, we could raise the
rating if Red Star's business operation strengthens and it achieves
solid growth while finding sufficient sources for refinancing."

The company's ratio of liquidity sources to liquidity uses
improving to more than 1.2x could indicate such an improvement. At
the same time, the company would need to maintain or improve its
leverage such that its FFO-to-debt ratio is not worse than 7%. Its
parent would also need to demonstrate the same improvement in its
liquidity profile and debt profile management.

ZENSUN GROUP: Moody's Lowers CFR to B2 on Weak Sales Performance
----------------------------------------------------------------
Moody's Investors Service has downgraded Zensun Group Limited's
corporate family rating to B2 from B1.

At the same time, Moody's has downgraded to B3 from B2 the backed
senior unsecured rating on the notes issued by Zensun Enterprises
Limited — a listed subsidiary of Zensun— and guaranteed by
Zensun.

All rating outlooks have been changed to stable from negative.

"The downgrade reflects Zensun's weak sales performance and cash
collection that have been below our expectation and are unlikely to
show material improvement in the next 1-2 years in view of its
small land bank and tight credit conditions in China's property
sector," says Celine Yang, a Moody's Assistant Vice President and
Analyst.

"The downgrade also reflects the heightened business execution
risks associated with its planned expansion outside its core
Zhengzhou market, including to low-tier cities in Henan province,
where housing demand is generally more uncertain as compared with
Zhengzhou, the provincial capital," adds Yang, also Moody's lead
analyst for Zensun.

In addition, the lower availability of bank funding in low-tier
cities could potentially constrain the company's cash flow
generation and liquidity, and in turn limit its ability to pursue
sales growth plan.

RATINGS RATIONALE

Zensun's B2 CFR reflects the company's (1) established brand name
and leading market position in Zhengzhou; and (2) established track
record of urban redevelopment projects in the city, supporting the
company's ability to acquire new contracts for redevelopment
projects in Zhengzhou.

However, Zensun's B2 CFR is constrained by the company's moderate
operating scale with high geographic concentration in Henan
province, the increased execution risks associated with its
expansion outside of its home market, and its small land bank,
which results in higher requirement than peers to replenish its
land bank to support sales.

Moody's estimates that Zensun had only around 9 million square
meters (including around 20% underground floor area) as of 31
December 2020, as measured by gross floor area (GFA), which can
only cover around two years of sales.

With this constraint, Moody's expects Zensun's contracted sales
will decline slightly to RMB30 billion in 2021.

Moody's estimates that Zensun's property sales in 2020 declined
around 12%-13% from RMB37.5 billion in 2019 (not including
resettlement housing sales). This performance is weaker than
Moody's original expectation and lags the 10.8% national property
sales growth. Additionally, its cash collection rate remained weak
at around 65% in 2020, versus 62% in 2019. Such performance and
operating scale positions the company's CFR more appropriately at
the B2 level.

However, Zensun has scaled down its land acquisitions in the past
1-2 years to preserve liquidity and control its debt leverage.
Moody's expects the company will maintain such liquidity and
financial management practice, and keep its key credit metrics
largely stable and appropriate for its B2 CFR.

Zensun's liquidity is adequate. Moody's expects the company's cash
holding and operating cash flow can fully cover its maturing debt
and committed land payments in the next 12-18 months.

However, the company's liquidity will weaken if it is unable to
execute its sales plan in the next 12-18 months or if it adopts a
more aggressive land banking strategy to pursue growth.

The B3 senior unsecured bond rating is one notch lower than
Zensun's CFR because of structural subordination risk. Most of
Zensun's claims are at the subsidiary level and have priority over
claims at the holding company in a bankruptcy scenario. In
addition, the holding company lacks significant mitigating factors
for structural subordination.

In terms of environmental, governance and social (ESG) factors,
Moody's has considered the company's private company status and
concentrated ownership. It has in the past also undertaken a
significant amount of related party transactions with Zhenyang
Construction (ZYC), a subsidiary of Zensun. However, Moody's
expects its transactions with ZYC will be subject to the regulatory
corporate governance standards of Hong Kong Stock Exchange, as
Zensun continues to develop new projects under its Hong Kong listed
subsidiary, Zensun Enterprises Limited. Henan Hongguang Zensun Real
Estate Co., Ltd, its core onshore subsidiary, is also subject to
onshore disclosure requirements due to its issuance of onshore
bonds. These two subsidiaries account for over 85% of its Zensun's
total asset as of end of June 2020. In addition, Zensun has not
paid out dividends in the past three years.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

The stable outlook reflects Moody's expectation that Zensun will
maintain adequate liquidity and ongoing access to various onshore
and offshore funding channels in the coming 12-18 months. Moody's
also expects Zensun will maintain its business scale and
meaningfully improve its cash collections over the same period.

Moody's could upgrade Zensun's ratings if it (1) achieves sustained
growth in both contracted sales (excluding resettlement sales) and
revenue without sacrificing its profit margin significantly; (2)
improves its land bank size and diversifies its geographic coverage
without compromising its liquidity; and (3) strengthens its
liquidity position, with cash to short-term debt consistently above
1.0x, while maintaining its credit metrics largely stable.

On the other hand, Moody's could downgrade the ratings if (1)
Zensun fails to execute its business plans and maintain a largely
stable operating scale; (2) its liquidity deteriorates due to its
inability to improve its sales or cash collection, or its pursuance
of an aggressive land acquisition strategy; or (3) its credit
metrics weaken materially.

Credit metrics indicative of a downgrade include EBIT/interest
coverage falling below 1.5x or cash to short-term debt failing to
trend towards 1.0x over the next 12-18 months.

Any signs of weakening in access to funding will also pressure
Zensun's ratings.

The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in January 2018.

Zensun Group Limited is a residential developer based in Zhengzhou,
China. The company is 100% owned by Ms. Huang Yanping and Mr. Zhang
Jingguo. At December 31, 2020, Zensun's land bank totaled around 9
million square meters of saleable gross floor area (including
around 20% underground floor area).



=========
I N D I A
=========

AISHWARYA CONSTRUCTION: CARE Reaffirms B+ Rating on INR49.5cr Loan
------------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Aishwarya Construction (AC), as:

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long Term Bank
   Facilities            49.50     CARE B+; Stable Reaffirmed

Detailed Rationale & Key Rating Drivers

The reaffirmation of the ratings to the bank facilities of AC takes
into account the modest scale of operations, moderate profitability
margins, moderate capital structure and debt coverage indicators
for FY20 (Audited; referring to a period from April 1 to March 31).
The rating continues to remain constrained on account of its
concentrated customer base, geographical concentration risk with
high dependence on government spending.

The ratings further take into account, the moderation in the order
book position of the firm and impact on execution of the orders
during Q1FY21(referring to a period from April 1 to June 30) due to
country wide lockdown amid the Covid-19 pandemic. However; the same
has improved gradually with the relaxation of the lockdown.  The
rating further continues to remain constrained on account of
presence of the firm in highly fragmented industry with intense
competition and partnership nature of constitution with risk of
withdrawal of capital.  The above constraints outweigh the comfort
derived from experience promoters and management, healthy
order-book position, synergies between group companies and key
customer.

Key Rating Sensitivity

Positive factors - Factors that could lead to positive rating
action/upgrade

* Sustained improvement in scale of operations and profitability
with PBILDT margin above 15%.

* Securing fresh orders indicating revenue visibility in the
medium-long term coupled with diversified clientele base Negative
factors: Factors that could lead to negative rating
action/downgrade

* Sustained weakening in revenue and profitability

* Any un-envisaged incremental borrowings, deteriorating its
overall gearing ratio over 4.4x on a sustained basis

* Deterioration in liquidity profile with inventory pile-up and/or
stretch in receivables Detailed description of the key rating
drivers

Key Rating Weaknesses

* Modest scale of operations and moderate profitability margins:
The operations of the firm commenced in April 2019. Further, the
company registered a total operating income (TOI) of INR45.02 crore
during FY20, with execution of the orders at hand. However,
execution was impacted during Q1FY21 amid country wide lockdown in
the wake of Covid-19 pandemic. However; the same has improved
gradually with the relaxation of the lockdown. Furthermore, the
firm has booked revenue of INR3.77 crore during 9MFY21 (referring
to a period from April 1 to December 31) and the Work in process
inventory stood at INR80.21 crore as on December 31, 2020 for which
the revenue is expected to be booked post physical verification.
The scale of operations of the firm is modest, coupled with
moderate net worth base at INR5.76 crore as on March 31, 2020,
which restricts the financial flexibility of the firm during
industry downturn. Furthermore, the profitability margins of the
firm stood moderate with PBILDT margin of 12.48% and PAT margin of
8.35% for FY20.

* Moderate capital structure and debt coverage indicators: The
total debt of the firm consists of vehicle loans and mobilization
advances of INR11.59 crore as on March 31, 2020 as against
net-worth base of INR5.76 crore resulting in moderate capital
structure as marked by the overall gearing ratio at 2.01x as on
March 31, 2020. The sanctioned cash credit limits was unutilized as
on March 31, 2020. Further, with moderate profitability and gearing
levels, the debt coverage indicators also stood at moderate levels
as reflected by interest coverage ratio of 3.28x and total debt to
GCA at 2.97x as at the end of FY20.

* Geographical concentration risk and high dependence on government
spending: The road construction projects are significantly exposed
to political stability at the respective state and central
government levels. Further, AC is a regional player with
outstanding orders concentrated in the only in state of Maharashtra
exposing the firm to considerable geographical concentration risk.
Moreover, the principal customer of the outstanding orderbook of
AC; is related to Government contracts, which makes the firm highly
susceptible to any drop in government spending on infrastructure
projects amid pandemic.

* Highly competitive industry due to fragmented and tender-driven
nature of business: AC operates in the engineering procurement and
construction industry mainly related to road construction projects,
which is fragmented in nature with a large number of small and
medium scale players present at regional level. This coupled with
the tender-driven nature of contracts leading to aggressive bidding
on account of huge competition, in turn increasing pressure on the
profit margins of the players.

* Partnership nature of constitution: Being a partnership firm, AC
is exposed to the risk of withdrawal of capital by partners due to
personal exigencies, dissolution of firm due to retirement of
partners and restricted financial flexibility due to inability
to explore cheaper sources of finance leading to limited growth
potential. This also limits the firm's ability to meet any
financial exigencies.

Key Rating strengths

* Experienced promoters and management: The partner of the firm Mr.
Suryabhan K. Bhosale has around four decades of experience in the
EPC segment, including construction of roads through his
partnership firm "Renuka Constructions" and various other entities.
Further, the other partner Mrs. Sangeeta Mangrule has more than two
decades of experience of investing and handling real estate
projects and is a trustee at Shreeyash Pratishthan an educational
trust which operates Engineering, Pharmacy, Arts, Science and
Commerce colleges at Aurangabad. The promoters are supported by
experienced management team headed by Mr. Basavaraj Mangrule, Chief
Engineer (Spouse of Mrs. Sangeeta Mangrule) who has around three
decades of experience in executing EPC projects through S. B.
Engineers. Extensive experience of the promoters and management
would help AC in strategic planning and timely execution of the
projects.

* Healthy order book position albeit significant concentration in
orders: The firm has a healthy outstanding order book position of
INR366.06 as on December 31, 2020 which is 8.13 times on the FY20
TOI (as against outstanding order book position of INR414.73 crore
as on November 30, 2019) providing revenue visibility in the medium
term. Further, the outstanding order book is related to road
construction and its maintenance thereof for the period of 10 years
post completion of the road construction project. Despite healthy
order book status, the outstanding orderbook is highly concentrated
with only three orders from single customer OSD-BEED-LATUR AU-1
Stateways Private Limited (OBLSPL; A Special purpose vehicle of the
joint venture formed by S.B. Engineers and Kalyan Toll
Infrastructure Limited to execute Hybrid Annuity Mode road project
for Maharashtra public works department). The same may adversely
impact the financial risk profile of AC in case of any delay in
receipts significantly hampering the cash flows of AC. Moreover,
the order book position of the firm has moderated compared to
previous year due to absence of fresh orders secured during the
year. Securing fresh orders from diverse customer base is a key
rating monitorable.

* Presence of operational and management synergies with group
companies and the key customer OBLSPL: AC is promoted by Mr.
Suryabhan K. Bhosale and Ms. Sangeeta Mangrule. Further, S.B.
Engineers is a proprietorship firm promoted by Mr. Basawaraj V
Mangrule (spouse of Ms.Sangeeta Mangrule). AC and SBE exhibit
synergies on account of reduced costs due to common management and
workforce. Also, the partners of AC and Mr.Basawaraj Mangrule
jointly own 74% of the shares of OBLSPL in turn exhibiting
managerial synergies with their key customer. Moreover, potential
infusion of the surplus funds between the companies provides
support to the operations.

Liquidity analysis: Stretched

The liquidity position of the firm is stretched with envisaged
lower net cash flow vis-à-vis repayment obligations of INR1.11
crore for FY21. Its capex requirements are modular and is expected
to be funded using internal accruals. Further, the average
utilization of the working capital limits (sanctioned amount
INR49.50 crore) stood at 70% for the last 12 months ended December
31, 2020. The cash and bank balance stood moderate at INR8.15 Crore
as on March 31, 2020. Furthermore, AC has received mobilization
advances to the tune of INR11.52 crore as on March 31, 2020 from
its key customer to support execution of the road construction
project. Also, the firm has availed guaranteed emergency line of
credit and Covid-19 specific loans amounting to INR7.62 crore to
support its operations. However, the firm has not availed
moratorium (Covid-19 Regulatory Package announced by RBI) for
deferment of interest payments of working capital limits. The gross
current asset days of the firm stood at 7 days as at the end of
FY20 with higher work in progress inventory.

Aishwarya Construction (AC) was established in November 2018, by
Mr. Suryabhan K. Bhosale and Mrs. Sangeeta Mangrule.  However, the
commercial operations of the firm commenced in April 2019. The firm
is engaged in the business of execution of Engineering Procurement
and Construction (EPC) projects in the infrastructure segment
primarily in construction, up gradation, repair and maintenance of
roads.

ASHTVINAYAK LEISURE: CARE Lowers Rating on INR10.58cr Loan to B-
----------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Ashtvinayak Leisure Private Limited (ALPL), as:

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long Term Bank      10.58       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 press release dated February 24, 2020, had placed
the ratings of ALPL under the 'Issuer Non-cooperating' category as
the company had failed to provide information for monitoring of the
ratings. ALPL continues to be non-cooperative despite requests for
submission of information through phone calls and e-mails dated
January 12, 2021, January 13, 2021 and January 18, 2021. 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 ratings assigned to the bank facilities of ALPL have been
revised on account of non-availability of requisite information and
CARE's inability to carry out due diligence with lender. The
ratings assigned to the bank facilities of ALPL continue to remain
constrained on account of project implementation risk associated
with its debt funded project and presence in the cyclical and
competitive nature of the industry with dependence on tourist
arrivals. The rating, however, continues to derive strength from
experienced management along with tie up for marketing and
management of the hotel and location advantage.

Detailed description of the key rating drivers

At the time of last rating on February 24, 2020, the following were
the rating weaknesses and strengths (updated based on best
available information):

Key Rating Weaknesses

* Project implementation risk: The company envisaged total cost of
the project of INR50.27 crore to be funded through promoter fund of
INR15.00 crore, term loan of INR20.00 crore and remaining through
unsecured loan of INR15.27 crore. The project is envisaged to be
completed till December 2019. Till August 12, 2019, the company has
incurred total cost of INR33.22 crore towards the project which was
funded through term loan of INR12.66 crore, promoter's fund of
INR9.00 crore and balance through unsecured loan where the civil
work have been completed and interior work of hotel property is
remaining.

* Cyclical and Competitive nature of the industry with dependence
on tourist' arrivals: The hospitality industry is highly sensitive
to the untoward events such as slowdown in the economy. Hotel
industry is primarily dependent on tourist arrivals which in turn
are dependent on the global economy. Further, the hotel is located
at Indore hence it will have to face stiff competition from
well-established hotels as well as from other small hotels.

Key Rating Strengths

* Experienced management with tie up for marketing and management
of the hotel: The promoters of the company have relevant experience
in the industry. Mr. Prem Chand Goyal, Director, has more than
three decades of experience in the hotel industry whereas Mr. Anand
Goyal, Director, has more than a decade of experience in the
industry and looks after the finance function of the hotel. The
promoters have also promoted Golden Leaves which is engaged in the
hotel business. Further, it has entered into an agreement with The
Park for marketing and management of the hotel which will lead to
high average room rent and occupancy rate.


* Location Advantage: The hotel property is located at Indore which
is the major tourist destination in Madhya Pradesh. In recent
times, it has also become a key MICE (Meetings, Incentives,
Conferences and Exhibitions) destination catering to large
incentive tours, corporate residential meetings and weddings. The
major tourist attractions like Rajwada, Chhtari Bagh, Kanch Mandir
and Lal Bagh Palace. The educational institutes like IIT Indore and
IIM Indore and also cities like Ujjain and Mhow cantonment are an
hour distance from the hotel.

Indore (Madhya Pradesh) based Ashtvinayak Leisure Private Limited
(ALPL) was incorporated in 2010 by Mr. Anand Goyal along with other
family members with an objective to establish a hotel. The hotel
facility will be constructed at 4,147.24 sq. meter having total 102
rooms which includes standard, deluxe and suite. Further, the hotel
property will have a cafeteria, restaurants and three banquet halls
each with capacity of 1000, 800 and 300 persons each. ALPL
undertook the project in May, 2015 and envisaged total project cost
of INR50.90 crore towards the project to be funded through term
loan of INR20.00 crore, promoter's capital of INR25.00 crore and
remaining through unsecured loans from promoters and relatives. The
company was expected to start its operations from December, 2019.

CARONA KNITWEAR: CARE Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Carona
Knitwear (CKW) continue to remain in the 'Issuer Not Cooperating'
category.

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long Term Bank        1.45      CARE D; ISSUER NOT COOPERATING
   Facilities                      Rating continues to remain
                                   under ISSUER NOT COOPERATING
                                   category

   Short Term Bank      22.50      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 January 27, 2020, placed the
rating(s) of CKW under the 'issuer noncooperating' category as CKW
had failed to provide information for monitoring of the rating. CKW
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and email
dated January 15, 2021. 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 January 27, 2020 the following were
the rating strengths and weaknesses:

Key Rating Weakness

* Ongoing delays in meeting of debt obligations: Carona Knitwear
has discontinued its operations, due to which the firm is unable to
service the debt obligations. There are ongoing delays in servicing
the interest and installment in term loan facility.

Tamil Nadu based, Carona Knitwear (CKW) was established in the year
2006 as partnership firm promoted by Mr.  Swami Nathan, Mrs. S.
Shanthamani and Mr. Kathiresh Swaminathan. The firm is engaged in
manufacturing, processing, importing, exporting, buying, selling
and dealing all kinds of fabric textiles and hosiery goods and
readymade garments.

CHD DEVELOPERS: CARE Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of CHD
Developers Limited (CDL) continue to remain in the 'Issuer Not
Cooperating' category.

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long Term Bank      235.30      CARE D; ISSUER NOT COOPERATING
   Facilities                      Rating continues to remain
                                   under ISSUER NOT COOPERATING
                                   category

   Fixed Deposit        38.15      CARE D (FD); ISSUER NOT
                                   COOPERATING; Rating continues
                                   to remain under ISSUER NOT
                                   COOPERATING category

   Fixed Deposit         7.37      CARE D (FD); ISSUER NOT
                                   COOPERATING; Rating continues
                                   to remain under ISSUER NOT
                                   COOPERATING category

Detailed Rationale & Key Rating Drivers

CARE had, vide its press release dated December 4, 2019 placed the
ratings of CDL under the 'issuer non-cooperating' category as CDL
had failed to provide information for monitoring of the rating. CDL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated January 11, 2021, January 7, 2021, January 5,
2021. 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 all bankers 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 rating has been assigned by taking into account
non-availability of information and no due-diligence conducted due
to non-cooperation by CDL 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 delays in servicing
of debt obligations, Slow momentum of project sales and
collections, Disclosures in audit report, Moderate capital
structure and weak debt coverage metrics, High dependence on
customer advances and Subdued industry scenario. The ratings,
however, continue to take comfort from experienced promoters and
management team coupled with long track record in real estate and
hospitality industry.

Detailed description of the key rating drivers

At the time of last rating on December 4, 2019 the following were
the rating weaknesses and strengths:

Detailed description of the key rating drivers

Key Rating Weaknesses

* Delays in servicing of debt obligations: There have been delays
in debt servicing towards bankers as well as to the FD holders by
CHD Developers on account of stretched liquidity position of the
company.

* Slow momentum of project sales and collections:  Currently, CHD
is developing a total saleable area of 58.59 lakh square feet
(lsf), out of which about 55% of the area i.e. 3 2.43 lsf has been
sold as on March 31, 2019. Further, as on March 31, 2019, out of
the total sale value of the sold area of INR1349 Cr, CHD has
received INR1086 Cr which is ~80.5% of the total sale value.
However, during the last 10 months ended March 2019, the
incremental sales stood at 2.33 lakh square feet for value of
INR58.38 Cr depicting slow momentum of fr esh sales of projects
given the subdued industry scenario. Further, during this period,
the company has received INR66.34 Cr as project collections
delivering average monthly collections of INR6.6 Cr.

* Disclosures in audit report: In FY19 audit report, the auditor's
opinion is qualified mainly on the basis of negative operating
cashflows of the company f or last three years amounting to INR41
Cr (FY17), INR61 Cr (FY18) and INR47 Cr (FY19) which may affect
entity's ability to continue as a going concern. The auditor has
also emphasized that the company has not rec eived 75% of amount
against share warrants (Rs.49 Cr). As per management, the said
amount is expected to be received by Aug. 2019. Timely receipt
of the same shall be crucial for the credit profile of CHD, going
forward.

* Moderate capital structure and weak debt coverage metrics: As on
March 31, 2019, there has been deterioration in the capital
structure of company as reflected by debt-equity ratio of 1.04x
(PY: 0.97x), overall gearing of 1.61x (PY: 1.28x) and interest
coverage ratio of 1.24x (PY: 1.33x). The total debt of company has
increased to 265.56 Cr (PY: INR207.51Cr) as on March 31, 2018
Furthermore, the company has outstanding EDC/IDC liabilities
amounting to INR135.61 Cr as on March 31, 2019.

* High dependence on customer advances: As on March 31, 2019, the
company has funded about 83% of the total project cost incurred
INR1086 Cr through its customer advances received from sale of
projects. Further, as on March 31, 2019, there are customer
advances receivable of INR263 Cr, majority of which are
construction linked and would be realized with the progress in the
construction stages of projects. Thus, high dependence on customer
advances amid on-going slow execution of projects exposes company
to funding risk.

* Subdued industry scenario: In real estate sector, prices are
likely to remain stagnant and developers will continue to focus on
clearing existing inventory rather than launching new projects as
they continue to grapple with regulatory changes like Real Estate
(Regulation and development) Act, 2016 (RERA), Goods and Services
Tax (GST) and overall subdued demand. In fact, 2020 is expected to
be another tough year for real estate developers, given the
on-going liquidity issues in the NBFC sector.

Analytical Approach: Consolidated

For arriving at the ratings, CARE has combined the business and
financial risk profiles of CHD Developers Limited and its nine
subsidiaries namely, CHD Facility Management Pvt. Ltd., CHD Infra
Projects Pvt. Ltd., CHD Blueberry Realtech Pvt. Ltd., CHD Elite
Realtech Pvt. Ltd., Delight Spirits Pvt. Ltd., International
Infratech Pvt. Ltd., Empire Realtech Pvt. Ltd., CHD Hospitality
Pvt. Ltd. and Golden Infracon Pvt. Ltd. All the entities have a
common management team and are in the same line of business.

CHD Developers Limited (CHD) incorporated in 1990, is promoted by
Mr.  Rajinder Kumar Mittal (Chairman), having more than three
decades of experience in the real estate industry. CHD is listed on
Bombay Stock Exchange (BSE) since 1995.  The company is engaged in
development of real estate (residential and commercial) in the
National Capital Region (NCR) including Karnal, Gurgaon and Sohna
(Haryana). The company has long-standing presence and established
brand in Gurgaon and Karnal. In the past, the company has completed
several residential and commercial real estate projects with total
saleable area of 54.92 lsf.

DANEM HEAVY: CARE Lowers Rating on INR30cr LT Loan to B
-------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Danem Heavy Industries Private Limited (DHI), as:

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long Term Bank       30.00      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 January 14, 2020, placed the
rating(s) of DHI under the 'issuer non-cooperating' category as DHI
had failed to provide information for monitoring of the rating. DHI
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and email
dated January 15, 2021. 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 rating takes into account the non-availability of requisite
information due to non- cooperation by DHI 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 January 14, 2020, the following were

the rating strengths and weaknesses:

Key Rating Weakness

* Project implementation risk: The company proposes to establish a
fabrication unit with installed capacity of 63 Metric Tonnes per
day. The estimated project cost is INR49.45Crore, out of which
INR29.56 crore of term loan, for construction of factory building
and for purchase of machinery which has proposed to be financed by
the bank. The remaining INR15.07 crore has been funded by the
promoters. The company also proposes to borrow working capital
facilities post commencement of production. The company has
purchased the land for the unit, which spreads over 22 acres.
Currently the project undergoing land development stage. The
commercial operations are expected to be commenced during January
2019.

* Profitability susceptible to volatile raw material prices: Any
fluctuation in commodity prices especially that of steel, which is
the company's major raw material, will impact profitability.

* Highly fragmented and competitive business segment due to
presence of numerous players: The company is engaged into a
fragmented business segment and competitive industry. The market
consists of several small to medium-sized companies that compete
with each other along with several large enterprises. However it is
partially mitigated by the group support.

Key Rating Strengths

* Extensive experience of the promoters in Fabrication industry:
Mr. Parayil Daniel Mathew is a promoter of the company who is the
chairman of Danem Group, having experience of almost three decades
in fabrication service industry. Mrs Susan Mathew is another
promoter of the company, who is expertised in administration and
industrial exposure. Both the promoters belongs to a same family.

* Comfort from group companies: DHI draws comfort from group
companies in terms of orders, operations, marketing and financial
aspects. DHL belongs to Danem Group which is operating around nine
countries across the world providing all metal fabrication products
and services. Totally 16 entities are operating under this group.
DHL will get the orders from its group's existing clients, and for
manpower it is deputing some skilled and managerial employees from
its associate companies.

M/s. Danem Heavy Industries Private Limited (DHI) was incorporated
on 1st March 2016, registered under companies' act 2013. The
company is having its registered office at Ernakulum, Kerala. The
company proposes to engage in fabrication of Windmill Tower,
Pressure Vessels & Tanks, Structural Steel, Material Handling
equipments, Gas Turbine Auxiliaries and Supply Auto Auxiliaries.
DHI belongs to Danem Group, headquartered in UAE. The promoters are
Mr.  Parayil Daniel Mathew and Ms. Susan Mathew, who are also the
directors of other associate companies under Danem Group. The
current project is yet to be executed.

DIVYA SIMANDHAR: CARE Lowers Rating on INR34.75cr Loan to D
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Divya Simandhar Construction Private Limited (DSCPL), as:

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long Term Bank      15.00       CARE D; ISSUER NOT COOPERATING;
   Facilities                      Rating continues to remain
                                   under ISSUER NOT COOPERATING
                                   category and Revised from
                                   CARE B; Stable; ISSUER NOT
                                   COOPERATING

   Long Term/Short     34.75       CARE D; ISSUER NOT COOPERATING
   Term Bank                       Rating continues to remain
   Facilities                      under ISSUER NOT COOPERATING
                                   category and Revised from
                                   CARE B; Stable/CARE A4; ISSUER
                                   NOT COOPERATING

   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; ISSUER NOT
                                   COOPERATING

Detailed Rationale & Key Rating Drivers

CARE had, vide its press release dated March 26, 2018, placed the
ratings of DSCPL under the 'issuer non-cooperating' category as
DSCPL had failed to provide information for monitoring of the
rating as agreed to in its Rating Agreement. DSCPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and email dated February
2, 2021. 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 the ratings assigned to the bank facilities of
DSCPL takes into account delays in servicing debt obligations on
its bank loan facilities due to weak liquidity position.

Key Rating Sensitivities

Positive factors:

* Improvement in overall liquidity position of the company along
with timely servicing its debt repayment obligations

Negative Factors: Not Applicable

Detailed description of the key rating drivers

Key Rating Weaknesses

* Delay in servicing of debt: As per the feedback received from
banker on February 2, 2021, DSCPL has delayed in servicing interest
on cash credit (CC) facilities for a period of two months i.e.
December 2020 and January 2021 and the CC account remains overdrawn
for more than 30 days.

DSCPL was established during April 2007 as a partnership firm
'Simandhar Construction' by Mr.  Tushar Shah and Ms. Sheetal Shah.
In December 2012, the firm was converted into a private limited
company and renamed as DSCPL.  DSCPL is engaged in the construction
and infrastructure related activities (mainly road work) on
Engineering Procurement and Construction (EPC) basis in Gujarat.

EUROTEK ENGINEERING: CARE Cuts Rating on INR6.75cr Loan to B
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Eurotek Engineering Enterprise (EEE), as:

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long Term Bank       6.75       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 January 21, 2020, placed the
rating(s) of EEE under the 'issuer non-cooperating' category as EEE
had failed to provide information for monitoring of the rating. EEE
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and email
dated January 15, 2021. 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 EEE 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 January 21, 2020 the following were
the rating strengths and weaknesses:

Key Rating Weakness

* Small scale of operations with fluctuating total operating
income: Despite having a track record close to two decades, the
total operating income (TOI) has been fluctuating due to
fluctuation in orders from its customer and remained small at
INR14.00 crore in FY18(Provisional) with low net worth base of
INR4.16 crore as on March 31, 2018(Provisional) as compared to
other peers in the industry. The TOI declined from INR12.60 crore
in FY16 to INR7.83 crore in FY17 as the firm received less orders
from its most important client- BHEL firm However, the firm has
achieved total operating income of INR6.5 crore in 5MFY19 (Prov.).

* Fluctuation of PBILDT margins albeit consistency in PAT margins:
The PBILDT of the firm has been fluctuating during the review
period although remained satisfactory. The PBILDT margin improved
from 5.55% in FY16 to 6.89% in FY18 (provisional) due to decrease
in material cost and overheads. However PAT margins of the firm
improved y-o-y from 0.66% in FY15 to 1.62% in FY18 (provisional) at
the back of absorption of financial expenses and depreciation
provision from operating profits.

* Moderate capital structure and weak debt coverage indicators: The
firm has moderate capital structure during the review period.
However, the debt equity ratio of the firm remained nil for the
last three balance sheet date ended March 31, 2018 (Prov.) The
overall gearing has been deteriorated year-on-year from 1.54x as on
March 31, 2016 to 1.63x as on March 31, 2018 (provisional) due to
higher working capital utilizations. The debt coverage indicators
of the firm also remained weak during the review period. Total
debt/GCA although improved from 25.38x in FY16 to 22.05x in FY18
(provisional) due to increase in cash accruals. The PBILDT interest
coverage ratio of the firm improved from 1.39x in FY16 to 1.59x in
FY18 (provisional) due to increase in PBILDT.

* Working capital intensive nature of operations: The operating
cycle of the firm was elongated during review period and stood at
261 days in FY17 due to high inventory period of 133 days on
account of its nature of business operations. The firm maintains
average level of raw materials and WIP inventory of around 3 months
due to the nature of business i.e. order based works executed by
the firm. The manufacturing undergoes various stages and time
depends upon the level of customization and capacity of the
finished product. The firm collects the payments from its customers
within 60-90 months from the date of billing but in FY18, the
average debtor period improved on the back of increase in TOI. The
firm further receives a credit period of one month from its
suppliers. To bridge the working capital requirement gap, the firm
utilizes sanctioned overdraft facilities of INR6.75crore. The
average utilization of working capital facility stood at 95% for
the last 12 months ended August 31, 2018.

* High customer concentration risk with total sales made to single
customer: The firm's entire supplies are being done to BHEL;
despite of the reputed and corporate client of the firm, the entire
revenues of the firm are dependent on the single customer. Hence
due to the concentrated revenues of the firm from single customer,
lack of orders or reduction in volumes demanded by BHEL would
directly impact the revenues and margins of the firm.

* Constitution of the entity as partnership firm with inherent risk
of withdrawal of capital: Constitution as a partnership has the
inherent risk of possibility of withdrawal of the capital at the
time of personal contingency which can adversely affect its capital
structure. Furthermore, partnership firms have restricted access to
external borrowings as credit worthiness of the partners would be
key factors affecting credit decision for the lenders.

Key Rating Strengths

* Long track record of the firm with experience of the partner for
more than two decades in fabrication industry:  EEE was established
in 1998 by Mr.  Baburaj and Mrs. Saraswathi. Mr.  Baburaj is a
Diploma in civil engineering (DCE). He is the Managing Partner of
the firm who takes care of day to day operations and has more than
two decades of experience in the fabrication of boiler components
since inception of the business. The other partner is well
qualified and has more than two decades of experience in the
industry. Mr Settu, H/o Mrs. Saraswathi assists Mr Baburaj in
managing the day to day activities of the firm. The firm has
established good relationship with suppliers and customers due to
established track record and presence in the business for a longer
period of time.

* Government initiative in Power sector: The government initiatives
and investments can be attributed as the key market drivers. As a
result of increased government spending on electrification and
rising power demands, the electrical equipment manufacturers are
likely to get benefitted. Programmes such as RGGVY (Rajiv Gandhi
Grameen Vidyutikaran Yojana) and R-APDRP (Revised Accelerated Power
Development and Reforms Program) are bolstering the demand for
electrical equipments such as switch gears, conductors, capacitors
and transformers. Transformers being used in generation,
transmission as well as distribution network has experienced
healthy growth over the last few years and the market is further
set to rise as a result of increased governmental focus towards
rural electrification.

* Association with reputed corporate i.e. BHEL from past 20 years
with current order worth INR15.5 crore: The firm is majorly
supplying all of its materials to Bharat Heavy Electricals Limited
(BHEL) only. With the established relation with BHEL, the promoters
are being able to get repeated orders from them and realization of
receivables of the firm on time. The firm has current orders worth
around INR15.50crore from BHEL as on April 04, 2018 for supply of
Boilers and Supporting Components and which is likely to execute by
December.

Analytical Approach: Standalone

M/s. Eurotek Engineering Enterprises (EEE) was established in the
year 1996 as a partnership firm by Mr.  Baburaj (Managing Partner)
and Mrs. Saraswathi as a partner. The firm is engaged in
manufacturing of boiler related ancillaries and components at
Trichy, Tamil Nadu. The firm sells its final product to Bharat
Heavy Electrical Limited. The firm has availed moratorium announced
by RBI on COVID-19 for its rated bank facilities.

GALAXY STONEMART: CARE Reaffirms B- Rating on INR3.0cr LT Loan
--------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Galaxy Stonemart Private Limited (GSPL), as:

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long Term Bank       3.00       CARE B-; Stable Rating removed
   Facilities                      from ISSUER NOT COOPERATING
                                   category and Reaffirmed

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of GSPL continue to
remain constrained on account of its small scale of operations with
net and cash loss, weak solvency position and stretched liquidity
position. The rating, further, continue to remain constrained on
account of vulnerability of margins to fluctuation in raw material
prices, easy availability of substitute products and its presence
in a highly competitive stone industry with linkage to cyclical
real estate sector.  The rating, however, continue to favorable
takes into account experienced management.

Rating Sensitivities

Positive Factors - Factors that could lead to positive rating
action/upgrade:

* Sustained improvement in scale of operations with TOI more than
INR20 crore

* Sustained improvement in profitability with registering net and
cash profit

* Sustained improvement in capital structure with positive
net-worth

Negative Factors - Factors that could lead to negative rating
action/downgrade:

* Continuous net-loss and cash loss

* Any delay in infusion of unsecured loans by the promoters

Detailed description of the key rating drivers

Key Rating Weakness

* Small scale of operations with net and cash loss and weak
solvency position: The scale of operations of the company stood
small with Total Operating Income (TOI) of INR5.64 crore during
FY20. TOI of the company remained stagnant in last three financial
years ended FY20. Till December 31, 2020 it has registered TOI of
INR3.5 crore. PBILDT margin of the company stood comfortable at
25.03% in FY20, declined from 26.17% in FY19 owing to higher
employee cost. However, due to higher interest and finance cost, it
has registered net loss and cash loss in last three financial years
ended FY20. Due to continuous net loss, the net-worth base of the
company has eroded and stood negative as on March 31, 2020. Due to
negative net-worth base, the capital structure of the company stood
negative. Further, Debt coverage indicators of the company also
stood weak marked by negative total debt to GCA and below unity
interest coverage.

* Vulnerability of margins to fluctuation in raw material prices
and easy availability of substitute products:  The major raw
material required by GSPL is natural stones. The profitability of
the company is vulnerable to any adverse movement in raw material
prices as the company will not be immediately able to pass on the
increased price to its customers and its elongated raw material
inventory holding period. Hence, operating margin has varied at
8.52-26.17% over the three financial years ended FY20. Furthermore,
there are various substitute products which are easily available in
the market and GSPL faces competition from same.

* Presence in a highly competitive stone industry with linkage to
cyclical real estate sector: It is considered to be highly
fragmented with presence of large number of organized and
unorganized players. The entry barriers to the industry are very
low and the operating margin is susceptible to new capacity
additions in the industry. The industry is primarily dependent upon
demand from real estate and construction sector across the globe.
The real estate industry is cyclical in nature and is exposed to
various external factors like the disposable income, interest rate
scenario, etc.

Key Rating Strengths

* Experienced management: Mr Daulat Daga, Director, is post
graduate by qualification and has around 30 years of experience in
same line of business. He looks after finance function of the
company. Mr Kailash Kumar Daga, director, is post graduate by
qualification and looks after marketing function of the firm. He
has more than 25 years of experience in same line of business. Mr
Pratap Daga and Mr Abhineet Daga have more than 25 years of
experience and look after purchase, production and marketing
function of the firm. The promoters are resourceful and have
infused the unsecured loan of INR18.81 crore as on March 31, 2020.

Liquidity: Stretched

The liquidity position of the company stood stretched marked by
elongated working capital cycle of 1682 days in FY20, deteriorated
from 1162 days in FY19 on account of high inventory holding period.
Due to high inventory, the current ratio stood healthy at 3.04
times, however, quick ratio stood below unity at 0.42 times as on
March 31, 2020. The average utilization of working capital bank
borrowings remained at 90% during last 12 months ended December
2020. Further, it has cash loss since last 3 years. It has availed
the moratorium from March to August 2020 on account of Covid-19 and
availed the term loan of INR0.50 in July 2020 which is to be repaid
in 36 monthly installments after one year of moratorium.

GSPL was incorporated in 2004 by Mr Daulat Daga along with his
family members. GSPL is engaged in the business of processing of
natural stones at its plant located at Shivdaspura, Jaipur having
total installed capacity of 1.50 lakh Square feet Per Month to
process natural stones. It procures marble slabs and stones from
Rajasthan and Madhya Pradesh and after processing (cutting and
polishing) in plant sell its products in domestic markets. GSPL is
also engaged in the business of trading of tiles and hydromax.

GREATWELD ENGINEERING: Insolvency Resolution Process Case Summary
-----------------------------------------------------------------
Debtor: Greatweld Engineering Private Limited
        Kunal Puram, Building B-1
        Office No. 6, II Floor
        Opp. Atlascopco Ltd.
        Mumbai-Pune Road
        Dapodi, Pune 411012

Insolvency Commencement Date: January 29, 2021

Court: National Company Law Tribunal, Pune Bench

Estimated date of closure of
insolvency resolution process: July 28, 2021

Insolvency professional: CA Fanendra Harakchand Munot

Interim Resolution
Professional:            CA Fanendra Harakchand Munot
                         6th Floor, Mafatlal House Building
                         H T Parekh Marg
                         Backbay Reclamation
                         Mumbai 400020
                         E-mail: fhmunot@gmail.com

                            - and -

                         101, Monoplex Plaza
                         Deep Bungalow Chowk
                         Pune 411016
                         Mobile: 9822791945
                         E-mail: cirp.greatweld@gmail.com

Last date for
submission of claims:    February 16, 2021


GUJARAT STEEL: CARE Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Gujarat
Steel & Pipes (GSP) continues to remain in the 'Issuer Not
Cooperating' category.

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long-term/Short-     24.00      CARE D/CARE D; ISSUER NOT
   Term Bank                       COOPERATING; Rating continues
   Facilities                      to remain under ISSUER NOT
                                   COOPERATING category

Detailed Rationale & Key Rating Drivers

CARE had, vide its press release dated February 10, 2020, continued
the rating of GSP under the 'Issuer Non Co-operating' category as
GSP had failed to provide information for monitoring of the rating.
GSP continues to be non-cooperative despite repeated requests for
submission of information through e-mail communication dated
January 25, 2021 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 February 10, 2020, the following were
the rating strengths and weaknesses.

Key Rating Weaknesses

* Delays in servicing of debt obligations: Due to weak liquidity
position of the firm, there have been delays in servicing of
debt obligations.

Constituted in 1983, Ahmedabad based Gujarat Steel & Pipes (GSP)
was promoted by Mr.  Rajnikant P. Shah. Entity is primarily engaged
in the trading of long steel products like rounds, billets, angles,
beams, bloom, pipes, sheets, plates, TMT bars and wires.

HEALTHICO QUALITY: CARE Keeps B- Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Healthico
Quality Products Private Limited (HQPPL) continues to remain in the
'Issuer Not Cooperating' category.

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long term Bank        14.00     CARE B-; Stable; ISSUER NOT
   Facilities                      COOPERATING; Rating continues
                                   to remain under ISSUER NOT
                                   COOPERATING category

Detailed Rationale & Key Rating Drivers

CARE had, vide press release dated February 12, 2020, had placed
the ratings of HQPPL under the 'Issuer Non-cooperating' category as
the company had failed to provide information for monitoring of the
ratings. HQPPL continues to be non-cooperative despite requests for
submission of information through phone calls and e-mails dated
January 12, 2021, January 13, 2021 and January 18, 2021. 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 ratings assigned to the bank facilities of HQPPL continue to
remain constrained on account project implementation risk
associated with its on-going greenfield project for manufacturing
of stainless steel scrubbers, susceptibility of profit margins to
volatile raw material prices and its presence in the highly
competitive and fragmented industry.

The rating, however, favorably takes into account well qualified
and experienced promoters with group support through other
associate entities.

Detailed description of the key rating drivers

At the time of last rating on February 12, 2020, the following were
the rating weaknesses and strengths (updated based on best
available information):

Key Rating Weaknesses

* Implementation and stabilization risk associated with on-going
debt-funded capex: HQPPL is setting up a project for manufacturing
of stainless Steel scrubbers under the brand of 'Mazic' which will
be primarily utilized for cleaning purpose in households. HQPPL
will operate through its sole manufacturing facility at Indore with
an installed capacity manufacturing 400 metric tonnes of Stainless
Steel scrubbers per month. The total project cost is envisaged at
INR20 crore while had commenced construction in March, 2018 and
incurred cost of INR6.00 crore (funded via Equity share capital of
INR0.01 crore and the balance via unsecured loans) towards purchase
of land and construction against the project till November 30,
2018. As per banker interaction, company did not opt for moratorium
benefit for its bank facilities.

* Susceptibility of profit margins to volatile raw material prices:
Prices of raw material i.e. stainless steel wires are highly
volatile in nature and depend upon fluctuations in the market price
of steel scrap. Hence, the profitability of the company will
susceptible to the fluctuations in raw material prices and any
adverse fluctuation in the raw material price will have direct
impact on the operating margins of the company. Ability of the
company to pass on fluctuations in the raw material price to its
customers will remain crucial.

* Presence in highly competitive and fragmented industry: The FMCG
industry in India is highly fragmented and competitive in nature
with low entry barriers as reflected by a large number of
independent and small scale unorganized players which exerts
pressures on operating margins of the players in the industry.
Small companies like HQPPL in general are vulnerable to intense
competition and have limited pricing flexibility, which contains
their profitability and pricing power considering their scale of
operations.

Key Rating Strengths

* Well qualified and experienced promoters: The board of HQPPL
consists of three members i.e. Mr.  Manish Jain, Mr.  Sanjeev Jain
and Mr.  Rakesh Sharma, who all are jointly responsible for overall
management of the company. Mr.  Manish Jain is B. Pharma by
profession and experience of 20 years in the same industry. Mr.
Sanjeev Jain is, Bachelor in Engineering (B.E.) by profession and
experience of around 25 years in the same industry. Mr.  Rakesh
Sharma is also Bachelor in Engineering (B.E.) by profession and
experience of around 25 years in the same industry. Hence, the
promoters are well-versed with the industry which will help HQPPL
in establishing its customer base.

* Group support through other associate entities: HQPPL belongs to
the S. Anand Group which had made a beginning way back in the year
1964 by way of umbrella assembling unit "Anand Umbrellas". S. Anand
Group is now lead by Mr.  Manish Jain and Mr.  Sanjeev Jain. The
group companies of HQPPL, Advent Metal Profile Private Limited is
also engaged in manufacturing of stainless steel scrubbers and
S.A.I. Brushes Private Limited is engaged in packing of stainless
steel scrubbers and other household products like Green Pads,
Phenyl, Wipers, Dish Wash etc. The group also consists of one other
company Sarv Siddhi Foods which is engaged in the manufacturing of
various food products.

Indore-based (Madhya Pradesh), Healthico Quality Products Private
Limited (Formerly known as Healthico Pharma Private Limited)
(HQPPL) was incorporated in March, 2010 as a private limited
company. The company is setting up a project for manufacturing of
stainless Steel scrubbers under the brand of 'Mazic' which will
primarily be utilized for cleaning purpose in households. The
activity will mainly include purchasing stainless steel wires from
the local market of different sizes and then processing it into the
stainless steel scrubbers. The activity will also include packing
and sealing of the scrubbers. HQPPL will operate through its sole
manufacturing facility at Indore with an installed capacity of
manufacturing 400 metric tons of stainless steel scrubbers per
month.

HYDERABAD RING: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Hyderabad
Ring Road Project Private Limited (HRRPPL) continues to remain in
the 'Issuer Not Cooperating' category.

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long Term Bank      185.11      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 24, 2019, placed
the rating(s) of HRRPPL under the 'issuer non-cooperating' category
as HRRPPL had failed to provide information for monitoring of the
rating. HRRPPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails, phone calls
and a letter/email dated January 4, 2021, January 5, 2021, January
6, 2021, January 14, 2021, January 18, 2021, January 19, 2021,
January 21, 2021, January 22, 2020 and January 25, 2021. 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

The rating assigned to the bank facilities of Hyderabad Ring Road
Project Private Limited (HRRPPL) continues to factor in delays in
debt servicing by the company. At the time of last rating on
December 24, 2019, the following were the rating weaknesses and
strengths:

Key Rating Weaknesses:

* Delay in Debt servicing obligations: The liquidity position of
the company continues to remain weak due to delay in receiving
annuities from Hyderabad Growth Corridor Limited, leading to
ongoing delays in debt servicing.

Hyderabad Ring Road Project Private Limited (HRRPPL) is a special
purpose vehicle (SPV) promoted by consortium of Era Infra
Engineering Limited and Induni CIE SA, for executing and operating
a 8-lane expressway (Narsingi to Kollur from km 0.00 to km 12.00
package) under Phase II of Outer Ring Road project of Hyderabad
Growth Corridor Limited (HGCL, in which 74% stake is held by
Hyderabad Metropolitan Development Authority (HMDA)) on Build
Operate Transfer (BOT Annuity) basis. The project, which was
secured following competitive bidding process in June 2007,
received provisional COD w.e.f. from March 30, 2012. The concession
period of the project is of 15 years from the appointed date, which
is December 12, 2007. HGCL/HMDA would pay HRRP 25 semi-annual
annuities of INR30.9 crore each over the entire concession period
from the COD.

JCT LIMITED: CARE Lowers Rating on INR90r LT Loan to D
------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of JCT
Limited (JCT), as:

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long term Bank       90.00      CARE D Revised from CARE B;
   Facilities                      Stable

   Short term Bank
   Facilities          105.30      CARE D Revised from CARE A4

Detailed Rationale & Key Rating Drivers

CARE has revised the ratings for bank facilities of JCT to 'CARE
D'. Facilities with this rating are in default or are expected to
be in default soon. The revision in the ratings of bank facilitates
of JCT takes into account instances of delays in servicing of the
due debt obligations by the company.

Rating Sensitivities

Positive Factors - Factors that could lead to positive rating
action/upgrade:

* Timely Servicing of debt obligations for more than 3 months.

Detailed description of the key rating drivers

Key Rating Weaknesses

* Instances of delays in servicing of debt obligations: The company
has reported instances of delays in servicing of its debt
obligations related to the bank facilities and term loans. There
have been instances of devolvement of letter of credit (LC) in the
month of July and August 2020 leading to overutilization in cash
credit limits which were later regularized. Also, as per the notes
to accounts for 9MFY21 (refers to the period April 01 to December
31) financials, due to financial crunch in COVID19 situation and
also because of non-granting of moratorium/ restructuring under the
RBI's COVID 19 regulatory package to the company, there have been
certain delays in payment of term debt obligations which were not
rated by CARE.

* Weak financial risk profile: The total operating income of the
company has reduced from INR804.61 crore as on March 31, 2019 to
INR696.38 crore as on March 31, 2020 on account of sub-optimal
levels of operations on account of lower availability of raw
materials due to stretched liquidity position for the company. The
losses of the company widened from INR23.88 crore in FY19 to
INR44.56 crore in FY20 due to the moderation in total operating
income in the fiscal. The margins at the operating level declined
from 4.57% in FY19 to 0.12% in FY20. The continuous loss has
resulted in erosion of its networth from INR64.56 crore in FY19 to
INR19.14 crore in FY20. The overall gearing of the company
deteriorated from 3.03x as on March 31, 2019 to 9.11x as on March
31, 2020. JCT reported improvement in profitability metrics in
9MFY21 with PBILDT margins of 10.91% in 9MFY21 as against 1.38% in
9MFY20, however, there has been moderation in topline from
INR541.06 in 9MFY21 to INR451.15 in 9MFY20.

Key Rating Strengths

* Experienced promoters and established track record: JCT is the
part of Punjab based Thapar group. As a part of the Thapar family
settlement JCT went to Mr. MM Thapar. As per the family settlement
JCT Limited is the only company under the management of MM Thapar
family. Mr. Samir Thapar, son of Mr. MM Thapar is the Chairman and
Managing Director of the company and looks after the day to day
activities of the company. Mr. Thapar is supported by a team of
experienced professionals. JCT has long track record of more than
six decades and has established itself as a renowned brand in
India.

Liquidity: Stretched

The liquidity of the company is stretched with high utilization of
working capital limits with an average utilization of 96% for the
last 12 months ending January 2020. The cash and bank balance as on
December 31, 2021 stood at INR1.22 crore. As per RBI guidelines
dated March 27, 2020 and May 23, 2020, companies can avail a
moratorium of 6 months on their payment obligations due during the
period March –August 2020. The company had requested the same
from CARE rated working capital lenders Bank of Baroda, Punjab
National Bank and Allahabad Bank which has been approved.

JCT Limited (JCT) was incorporated as Jagatjit Cotton Textile Mills
Limited in October 1946 and subsequently renamed to JCT in 1989.
JCT is the part of Punjab based Thapar group. JCT is engaged in
manufacturing of cotton, synthetic & blended fabrics and nylon
filament yarn at its integrated textile facility in Phagwara
(Punjab) and filament yarn facilities in Hoshiarpur (Punjab). JCT
has installed capacity of 1,50,000 meters per day of cotton/blended
fabrics and 50,000 meters per day of synthetic fabrics at its plant
at Phagwara and 16000 Tonnes Per Annum (TPA) of nylon filament yarn
at Hoshiarpur plant.

KANISHKDEEP STOCK: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Kanishkdeep Stock Consultants Private Limited
        6-A-10, Mahaveer Nagar Extension
        Kota, Rajasthan 324005
        India

Insolvency Commencement Date: February 9, 2021

Court: National Company Law Tribunal, Jaipur Bench

Estimated date of closure of
insolvency resolution process: August 8, 2021

Insolvency professional: Sanjay Badrilal Punglia

Interim Resolution
Professional:            Sanjay Badrilal Punglia
                         501, Aalin Complex
                         Opp. Gujarat Vidyapith
                         Ashram Road
                         Ahmedabad 380014
                         E-mail: capunglia@gmail.com
                                 cirp.kanishkdeep@gmail.com

Last date for
submission of claims:    February 24, 2021


PADMAVATI INTERMEDIATES: Insolvency Resolution Case Summary
-----------------------------------------------------------
Debtor: Padmavati Intermediates Private Limited
        Office No. 111, Shreeji Complex
        Kansara Bazar, Dist. Rajkot
        Gujarat 360001

Insolvency Commencement Date: February 3, 2021

Court: National Company Law Tribunal, Ahmedabad Bench

Estimated date of closure of
insolvency resolution process: August 2, 2021

Insolvency professional: Darshan Bharatbhai Patel

Interim Resolution
Professional:            Darshan Bharatbhai Patel
                         31, Vrindavan
                         Inquilab Society
                         Gulbai Tekra, Polytechnic
                         Ahmedabad 380015
                         E-mail: ca.darshanbpatel@gmail.com

                            - and -

                         505, 5th Floor, Sears Tower
                         Gulbai Tekra, Panchwati
                         Ahmedabad 380006
                         E-mail: ip.cadarshan@gmail.com

Last date for
submission of claims:    February 23, 2021


QUADSEL SYSTEMS: CARE Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Quadsel
Systems Private Limited (QSPL) continue to remain in the 'Issuer
Not Cooperating' category.

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long Term Bank       10.35      CARE D; ISSUER NOT COOPERATING
   Facilities                      Rating continues to remain
                                   under ISSUER NOT COOPERATING
                                   category

   Short Term Bank       3.00      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 March 3, 2020, placed the
rating(s) of QSPL under the 'Issuer non-cooperating' category as
QSPL had failed to provide information for monitoring of the rating
QSPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and email
dated January 28, 2021. 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 March 3, 2020 the following were the
rating weaknesses:

Key Rating weaknesses

* Delays in servicing debt obligations due to stressed liquidity
position: The company has ongoing delays in term loan installment
repayments along with servicing of interest obligations due to
stressed liquidity position.

Quadsel Systems Private Limited (QSPL) is a Chennai based company
which was incorporated in the year 1995 by Mr. Girish Madhavan
(Managing Director) and other 3 directors. Later in the year 1998,
the constitution of QSPL changed and the current directors are Mr.
Girish Madhavan and Mrs. Dhanamani Madhavan. The registered office
of QSPL is located at Chennai, whereas the company has branches in
Hyderabad, Kerala and Bengaluru. QSPL is engaged in the business of
IT Infrastructure i.e., software development and various IT
services such cloud management, network management, printing
services, DBMS, ERP's etc., providing end to end solutions and
products and services to various organizations. DSPL is an ISO
9001:2015 Certification and ISO 27001:2013 Certification certified
company. QSPL is a dealer and channel partner of HewlettPackard,
Microsoft, and DELL etc. The financial performance marked by total
operating income has improved from INR17.48 crores in FY18 to
INR18.14 crores in FY19.The profit after tax (PAT) stood at INR0.03
crores for FY19. The networth of the firm stood at INR2.34 crores
as on March 31, 2019. The overall gearing deteriorated and stood at
5.66x as on March 31, 2019 and the interest coverage ratio also
deteriorated and stood at1.26x in FY19.

RADHE FOODS: CARE Lowers Rating on INR5.85cr LT Loan to D
---------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of Shri
Radhe Foods Product (SRFP), as:

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long Term Bank
   Facilities            5.85      CARE D Revised from CARE BB-;
                                   Stable

Detailed Rationale & Key Rating Drivers

The revision in the rating assigned to the bank facilities of SRFP
takes into account the delays in servicing of debt obligations for
the month ended December 31, 2020.

Rating Sensitivities

Positive Factors: Factors that could lead to positive rating
action/upgrade:

* Demonstration of default free track record of over 90 days.

Detailed Rationale & Key Rating Drivers

Key rating weaknesses

* Delays in servicing of debt obligations: As per interaction with
the banker, there were delays in servicing the term loan
installment falling due on December 31, 2020. Further, the pending
amount was repaid and was regularized as on January 29, 2021.The
said delay was on account of stretched receivables and resultant
cash flow issues faced by the firm.

Liquidity: Poor

Liquidity position of the SRFP is poor marked by lower accruals as
against the repayment obligations. This has constrained the ability
of the firm to repay its debt obligations on a timely basis.
Further, firm is unable to recover it's debtors on timely basis
leading to cash flow issues.

Shree Radhe Foods Product (SRFP) is a proprietorship firm
established by Mr. Gopal Agrawal in 2015.The firm is engaged in the
milling and processing of non-basmati rice. SRFP is operating from
its sole manufacturing plant located at Gondia (Maharashtra) having
installed paddy processing capacity of 120 Tonnes per day as on
March 31, 2020.Further the firm is also engaged in sorting of rice
at its unit.

RAMEN DEKA: CARE Migrates D Debt Rating to Not Cooperating
----------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Ramen
Deka (RD) to Issuer Not Cooperating category.

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long Term Bank        5.28      CARE D; ISSUER NOT COOPERATING;
   Facilities                      Rating moved to ISSUER NOT
                                   COOPERATING category

Detailed Rationale & Key Rating Drivers

CARE has been seeking information from RD to monitor the rating
vide e-mail communications/letters dated July 7, 2020, September 9,
2020, November 1, 2020, November 24, 2020, December 8, 2020,
January 8, 2021, January 18, 2021, January 27, 2021 and numerous
phone calls. However, despite our repeated requests, the entity has
not provided the requisite information for monitoring 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. The rating on RD's bank facilities will now be denoted as
CARE D; Issuer Not Cooperating.

Detailed description of the key rating drivers

Key Rating Weaknesses

* Ongoing delays in debt servicing: There are on-going delays in
servicing of term loans in the account. The delays were due to
lower accruals from business operations and higher dependence on
external borrowings.

M/s Ramen Deka (RMD) was established in January 2017 as a
proprietorship entity by one Mr. Ramen Deka of Guwahati in Assam.
After initiation, the entity has participated in an E-tender
floated by Indian Railway Catering and Tourism Corporation Ltd
(IRCTC) for operation and management of Food Plaza at some
important railway stations in India. The firm has achieved the
license for running the food plaza at Old Howrah Station in West
Bengal which is one of the busiest stations in India. According to
the license, the firm will operate the plaza upto nine years from
commencement which is subject to extension upto three years
further. The capacity is to serve one lakh passengers per day and
the project cost was INR7.50 crore (including license fee of
INR5.42 crore), financed by capital infusion of INR1.00 crore and
term loan of INR6.50 crore. The commercial operation has started
from July 2017. Mr. Ramen Deka, proprietor, looks after the day to
day operations of the firm.

RANGRAJ PROPERTIES: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: Rangraj Properties Private Limited
        Shop No. G-7, Ground Floor
        Pankaj Tower-1
        Community Centre
        Vikas Puri
        New Delhi 110018

Insolvency Commencement Date: February 4, 2021

Court: National Company Law Tribunal, New Delhi Bench

Estimated date of closure of
insolvency resolution process: August 3, 2021

Insolvency professional: Shailesh Dayal

Interim Resolution
Professional:            Shailesh Dayal
                         2/6A, LGF
                         Jungpura-A
                         New Delhi 110014
                         E-mail: shaileshdayal@gmail.com
                                 ip.rrprop@gmail.com

Last date for
submission of claims:    February 22, 2021


RATNA ENGINEERING: CARE Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Ratna
Engineering Work (REW) continue to remain in the 'Issuer Not
Cooperating' category.

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long Term Bank        4.50      CARE D; ISSUER NOT COOPERATING
   Facilities                      Rating continues to remain
                                   under ISSUER NOT COOPERATING
                                   category

   Short Term Bank       5.50      CARE D; ISSUER NOT COOPERATING
   Facilities                      Rating continues to remain
                                   under ISSUER NOT COOPERATING
                                   category

Detailed Rationale & Key Rating Drivers

CARE has been seeking information from REW to monitor the rating
vide e-mail communications/letters dated January 8, 2021, January
12, 2021 and January 18, 2021 and numerous phone calls.  However,
despite our repeated requests, the firm 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. The rating on
REW'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.

Detailed description of the key rating drivers

At the time of last rating in December 6, 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 firm and currently the account is
classified as Non-Performing Assets as mentioned by its lender.

Established in 2007, Ratna Engineering Work (REW) was promoted by
Mr. A.N. Reddy and Mr. Sanjay Kumar based out of Raipur,
Chhattisgarh. Since its inception, the firm has been engaged in
structural fabrication and rural electrification works on turnkey
basis. Moreover, the firm has not availed any moratorium from its
lender.

RK WIND: CARE Lowers Rating on INR9.73cr LT Loan to B+
------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of R.K.
Wind Farms (Karur) Private Limited (RKWPL), as:

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long Term Bank       9.73       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 March 17, 2020, placed the
rating(s) of RKWPL under the 'Issuer non-cooperating' category as
RKWPL had failed to provide information for monitoring of the
rating RKWPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails, phone calls
and email dated January 29, 2021. 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 RKWPL 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 March 17, 2020 the following were the
rating strengths and weaknesses:

Key Rating Weaknesses

* Climatic and technological risks: Achievement of desired PLF
going forward would be subject to change in climatic conditions
(low wind regimes in India), as well as technological risks.

Key Rating Strengths

* Long experience of the promoters in renewable energy industry
with established track: R.K. Textiles was established in the year
1985, the company has a track record of more than three decades
which was at a later stage converted to RKWFPL in 2012. Mr. K.
Subramanian, the promoter, Chairman cum Managing Director, has an
experience of more than three decades in textile industry and
renewable energy industry since 2003. He is a graduate in arts and
heads finance, accounts and marketing departments. Previously, he
was associated with a textile company run by his brother-in-law as
Manager, Production department for the period of 5 years from 1980
to 1985. Mrs. Malliga Subramanian, W/o Mr. K. Subramanian, is a
science graduate who heads administration and day to day affairs of
the company. She has an experience of total three decades in the
textile industry and renewable energy industry. His son Mr. Raghul
Subramanian, is a B.Tech, M.B.A who handles administration and
finance of the company. He has an industrial experience of three
years.

* Growth in total operating income and profitability margins: The
total operating income grew by 14% in FY19 and stood at INR8.65
crore as against INR7.56 crore. With improved scale of operations,
the PBILDT margin of the company has improved significantly to
43.7% in FY19 as compared to 36.53% in FY18.  With increase in
interest obligation w.r.t to term loan availed in the month of
September 2017, the PAT margin declined by 90 bps to 9.29% in
FY19.

* Improved capital structure and debt-coverage indicators: The
capital structure of the company remained satisfactory marked by
improvement in FY19 in overall gearing ratio to 1.24x as on March
31, 2019 as against 1.59x as of March 31 2018 at the back of
scheduled repayment of debt obligation. The debt coverage
indicators marked by Total debt/GCA stood at 3.95x in FY17
improving from 5.78x FY18 due to improved gross cash accruals
achieved during FY19 i.e INR2.65 crore (PY: Rs 2.10 crore) and
scheduled debt repayments.

R.K. Wind Farm (Karur) Private Limited was formerly known as RK
Textiles which was established in the year 1985. Presently, RKWFPL
is engaged in the sale of green energy with the capacity of
generating 8.5MW as on January 2020.

SAI LEASING: CARE Keeps D Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sai Leasing
Company (SLC) continues to remain in the 'Issuer Not Cooperating'
category.

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long Term Bank        7.28      CARE D; ISSUER NOT COOPERATING
   Facilities                      Rating moved to ISSUER NOT
                                   COOPERATING category

Detailed Rationale & Key Rating Drivers

CARE has been seeking information from SLC to monitor the rating
vide letter dated January 19, 2021 and e mail communications dated
January 18, 2021, January 12, 2021, January 5, 2021 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 Sai Leasing Company bank
facilities will now be denoted as CARE D; Stable; 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

At the last time of rating November 14, 2019; following Strengths
and Weaknesses were considered:

Key Rating Weaknesses

* On-going delays in debt servicing: There are on-going delays in
the repayment of term debt obligation. The delays are on account of
weak liquidity as the firm is unable to generate sufficient funds
on timely manner.

* Fragmented nature of the construction sector: Indian construction
industry is characterized by fragmented and competitive nature as
there are a large number of players at the regional level. Hence,
going forward, due to increasing level of competition, the profits
margins are likely to be range bound. Further, delays in obtaining
statutory clearances and increasing working capital needs have put
pressure on the financial profile of the companies in this sector.

* Partnership nature of constitution: SLC's constitution as a
partnership firm has the inherent risk of possibility of withdrawal
of the partners' capital at the time of personal contingency and
firm being dissolved upon the death/retirement/insolvency of
partners. Moreover, partnership firms have restricted access to
external borrowing as credit worthiness of partners would be the
key factor affecting credit decision of the lenders.

Key Rating Strengths

* Experienced partners in the construction industry: Mr. Mohit
Dabra has total work experience of 8 years which he gained through
his association with Dabra Weighbridge, engaged in manufacturing
weighbridges (capital goods) and Jai Financing Company, engaged in
providing financial services, as an employee. On the other hand,
Mrs. Pakija Arora has total work experience of around one decade in
the construction industry. She gained this experience through her
association with R K City Developers Private Limited (RKC) as
employee. Both the partners have adequate acumen about various
aspects of business.

Sai Leasing Company (SLC) was established in September, 2016 as a
partnership firm by Mr. Mohit Dabra and Mrs. Pakija Arora sharing
profit and losses equally. SLC is engaged in providing of
construction material like aluminum scaffoldings, shuttering
plates, planks and other equipment's such as cranes to various
contractors, builders and developers located in the Chandigarh
Tricity area (Chandigarh, Panchkula and Mohali) on rental basis.
The premises of the firm are based in Zirakpur, Punjab. The firm
started its commercial operations in April, 2019.

SAISUDHIR ENERGY: CARE Withdraws C Rating on LT Bank Facilities
---------------------------------------------------------------
CARE has revised the outstanding rating from CARE D; Issuer Non
Cooperation to CARE C; Stable assigned to the bank facilities of
Saisudhir Energy Ltd. (SEL) and has withdrawn the rating with
immediate effect. The action has been taken at the request of
Saisudhir Energy Limited (SEL) and 'No Objection Certificate'
received from the bank that has extended the facilities rated by
CARE.

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long Term Bank         -        Rating removed from ISSUER
   Facilities                      NOT COOPERATING category and
                                   Revised to CARE C; Stable
                                   from CARE D; ISSUER NOT
                                   COOPERATING and Withdrawn;
                                   Stable outlook assigned

The revision in the rating assigned to the bank facilities of SEL
factors in improvement in liquidity with consequent regularization
of debt servicing. The rating continuous to be constrained by the
high debt repayment obligation resulting in stretched debt coverage
metrics, moderate power generation and interest rate risk. The
rating is, however, underpinned by the presence of long-term power
purchase agreement with a strong counter party NTPC Vidyut Vyapar
Nigam Limited (NVVNL).

Detailed description of the key rating drivers

Key Rating Strengths

* Improvement in liquidity with regularization of debt servicing:
The company was facing cash flow mismatches on the account of
relatively lower generation and higher debt repayment obligation
given additional debt taken for advancing to group companies. While
the cashflow from operation remains stable, the company has availed
moratorium on debt servicing for the period March 2020 to August
2020 as a part of covid relief provided by RBI which has enabled it
to create liquidity buffer. Consequently, the company has
regularized the debt servicing and has also created Debt Service
Reserve Account covering one quarter debt servicing.

* Fixed PPA with NTPC Vidyut Vyapar Nigam Limited (NVVNL): SEL has
entered into power purchase agreement (PPA) with NVVNL during
January 2011 and January 2012 for sale of power upto 5 MW and 20
MW, respectively, for the period of 25 years from COD. NVVNL has
agreed to pay an annual average tariff of INR12 per kWh to SEL for
the 5 MW project and INR8.22 per kWh for 20 MW project for the sale
of power. SEL has been receiving timely payments from NTPC within 7
days.

* Minimal impact of COVID on business activity:  Government of
India had announced lockdown from the period March 21, 2020 to May
3, 2020 given the outbreak of global pandemic COVID 19. The
lockdown had impacted production/operation of various business
segments. However, the Ministry of New and Renewable Energy (MNRE)
had given 'must run' status for renewable energy projects and
hence, the impact on power generation has been limited. The company
did not face any power generation disruption due to COVID 19.
However, with a view to conserve cash, the company availed
moratorium on debt servicing for the period March 2020 to August
2020.

Key Rating Weaknesses

* Moderate operational performance and weak debt coverage metrics:
During FY20 and 9MFY21 the company has generated 40.28 MUs and
27.26 MUs of energy. The company has been operating a PLF of and
18.34% during FY20 and 16.64% during 9MFY21 lower than the P-90
level. This apart, the company has availed additional debt for
advancing it to holding company which has been facing liquidity
issues and hence there has been no recovery of such funds advanced.
Given the high debt level and moderate operational parameters, the
debt coverage indicators have been weak.

* Climactic and technological risks: The solar power projects are
subject to risk associated with changes in climatic conditions,
amount of degradation of modules as well as technological risks due
to limited track-record of solar technology in India.

Liquidity - Stretched

The liquidity profile is stretched with high debt repayment
obligation vis-à-vis cash accruals. The company has availed
moratorium on debt servicing as a part of COVID relief provided by
RBI, for the period March 2020 to August 2020. Thereafter the debt
servicing has been regular since September 2020. Also the company
has created DSRA of INR9.71 crore.

Saisudhir Energy Ltd. (SEL) was incorporated in 2010 by Mr. D.
Sreedhar Reddy to set up solar power plants in the Ananthpur
District in state of Andhra Pradesh. The company is a 100%
subsidiary of Saisudhir Infrastructures Limited (SSIL). SEL has
successfully commissioned two solar photovoltaic power plants of 5
MW and 20 MW respectively in Ananthpur district of Andhra Pradesh.
The company has entered into long term PPA with NTPC Vidyut Vyapar
Nigam Limited for entire 25 MW capacity.

SATYA SUBAL: CARE Lowers Rating on INR8.85cr Long Term Loan to D
----------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Satya Subal Himghar Private Limited (SSHPL), as:

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long Term Bank        8.85      CARE D Revised from CARE B;
   Facilities                      Stable

   Short Term Bank
   Facilities            0.17      CARE D Revised from CARE A4

Detailed Rationale & Key Rating Drivers

The revision in the ratings assigned to the bank facilities of
SSHPL takes into account the on-going delay in the term debt
servicing of the company.

Key Rating Sensitivities

Positives factors

* Track record of timely servicing of debt obligations for at least
90 days.
* Sustained improvement in financial risk profile, especially
liquidity.

Key Rating Weakness

* On-going delay in debt servicing: There is on-going delay in term
debt servicing of the company owing to inadequate cash flow from
operation.

Liquidity: Poor – Poor liquidity marked by lower accruals as
compared to repayment obligations, modest utilized bank limits and
low cash balance. This could constrain the ability of the company
to repay its debt obligations on a timely basis. The company has
reported gross cash accruals of INR0.68 crore during FY20 as
against repayment obligation of INR1.44 crore for FY21. The cash
balance stood at INR0.01 crore as on March 31, 2020. The current
ratio was also stood low at 0.40x as on March 31, 2020. Moreover,
the company has not availed any moratorium that could be availed
under the terms of recent RBI circular. Further, the company has
not availed COVID relief loan of from its lender.

Satya Subal Himghar Private Limited (SSHPL) was incorporated in
April, 2012 by Mr. Bhaskar Ghosh, Mr. Dipankar Ghosh and Mr.
Sasanka Sekhar Ghosh. Since its inception, SSHPL has been engaged
in the business of providing cold storage services primarily for
potatoes to local farmers and traders on rental basis with an
aggregate storage capacity of 172000 quintals. The cold storage
facility of the company is located at Paschim Medinipur, West
Bengal. Besides providing cold storage services, the company also
provides interest bearing advances to farmers for their
agricultural activities against the receipts of potato stored.
There is no restriction on the local movement of goods even though
lockdown was imposed in the country as the company is dealing with
the essential commodity for general consumption. Accordingly, the
operation of the company is running after maintaining proper safety
arrangements in its business premises adherence to government
guidelines. The company has booked a turnover of INR2.13 crore
during 9MFY21.

SATYESHWAR HIMGHAR: CARE Reaffirms D Rating on INR12.19cr Loans
---------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Satyeshwar Himghar Private Limited (SHPL), as:

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long Term Bank
   Facilities           12.01      CARE D Reaffirmed

   Short Term Bank
   Facilities            0.18      CARE D Reaffirmed


Detailed Rationale & Key Rating Drivers

The ratings assigned to the bank facilities of SHPL are continues
to remain constrained by the delay in term debt servicing of the
company.

Key Rating Sensitivities

Positives factors

* Track record of timely servicing of debt obligations for at least
90 days.

* Sustained improvement in financial risk profile, especially
liquidity.

Key Rating Weakness

* Delay in debt servicing: There was a recent delay in term debt
servicing of the company due to inadequate cash accruals from
operations. The term loan instalment which was fallen due on
September 30, 2020 was repaid with delay on December 31, 2020.

Liquidity: Poor – Poor liquidity marked by lower accruals when
compared to repayment obligations, modest utilized bank limits and
low cash balance. This could constrain the ability of the company
to repay its debt obligations on a timely basis. The company has
reported gross cash accruals of INR0.48 crore during FY20 as
against repayment obligation of INR0.93 crore for FY20. The cash
balance was at INR0.01 crore as on march 31, 2020. The current
ratio was also stood low at 0.71x as on March 31, 2020. Moreover,
the company has not availed any moratorium that could be availed
under the terms of recent RBI circular. Further, the company has
not availed COVID relief loan of from its lender.

Satyeshwar Himghar Private Limited (SHPL) was incorporated in
September, 2014 to set up a cold storage unit by Mr. Bhaskar Ghosh,
Mr. Dipankar Ghosh, Mr. Sasanka Sekhar Ghosh, Mr. Kinkar Prasad
Ghosh and Mr. Shankar Ghosh. SHPL has started loading its cold
storage from February 2016 onwards. SHPL is into providing cold
storage services primarily for potatoes to local farmers and
traders on rental basis with an aggregate storage capacity of
178000 quintals. The cold storage facility is located at Paschim
Medinipur, West Bengal. Besides providing cold storage facility,
the company also provides interest bearing advances to farmers for
their agricultural activities against the receipts of potato
stored. There is no restriction on the local movement of goods even
though lockdown was imposed in the country as the company is
dealing with the essential commodity for general consumption.
Accordingly, the operation of the company is running after
maintaining proper safety arrangements in its business premises
adherence to government guidelines. The company has booked a
turnover of INR2.03 crore during 9MFY21.

SHAKTI MOTORS: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Shakti Motors Automobiles Private Limited
        Unit No. 4, Ground Floor
        Banking Complex 02, Plot No. 9/10
        Sector 19A, Vashi
        Navi Mumbai 400705

Insolvency Commencement Date: February 3, 2021

Court: National Company Law Tribunal, New Delhi Bench

Estimated date of closure of
insolvency resolution process: August 8, 2021
                               (180 days from commencement)

Insolvency professional: Mukesh Kumar Gupta

Interim Resolution
Professional:            Mukesh Kumar Gupta
                         171 Sita Ram Apartment 102
                         IP, Ext, New Delhi
                         National Capital Territory of Delhi
                         110092
                         E-mail: guptam11@gmail.com

                            - and -

                         D-54, First Floor, Defence Colony
                         New Delhi 110024
                         E-mail: cirp.shaktimotors@gmail.com

Last date for
submission of claims:    February 24, 2021


SHINE TEXTILE: CARE Lowers Rating on INR12.50cr LT Loan to B+
-------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Shine Textile (ST), as:

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long Term Bank      12.50       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 January 31, 2020, placed the
rating(s) of ST under the 'issuer noncooperating' category as ST
had failed to provide information for monitoring of the rating. ST
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and email
dated January 15, 2021. 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 ST 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 January 31, 2020 & July 3, 2019 the
following were the rating strengths and weaknesses:

Key Rating Weakness

* Modest scale of operations: Despite track record of more than a
decade, ST's scale of operation stood moderate marked by total
operating income of INR98.42 crore in FY18 and tangible net-worth
of INR8.42 crore as of March 31, 2018 as compared to its peers.

* Leveraged capital structure: The debt profile of the firm
comprises predominantly of working capital facility. Besides, it
also has loan against deposits and unsecured loans from related
parties as a part of total debt. The capital structure of the firm
as represented by overall gearing has remained leveraged, however
improved from 2.52x as on March 31, 2017 to 2.19x as on March 31,
2018 on account of increase in partner's capital due to accretion
of profits.

* Working capital intensive nature of operations: Being in the
readymade garments segments, the firm is engaged in a working
capital as well as labour intensive nature of operations. It gets
the yarn processed, knitted, dyed from local parties on job work
based orders in hand. Since the firm gets the final fabric
processed on job work basis, the normal lead time is around 20-30
days. The firm is provided with credit period of 45 days from
various suppliers. With moderate creditors, debtors period and
inventory period, the operating cycle stood at 43 days in FY17.
However, with stock of finished goods held waiting to be sold to
customer as of balance sheet date led to increase in inventory
period from 18 days in FY17 to 36 days in FY18. As a result of the
same, the operating cycle of the firm also stretched to 65 days in
FY18 from 43 days in FY17. Also, the utilization level of working
capital facility stood high at 90%-95% for one year ended May
2019.

* Highly fragmented industry with intense competition from large
number of players: ST faces stiff competition in the business from
large number of established and unorganized players in the market.
Competition gets strong with the presence of unorganized players
leading to pricing pressures. However, improved demand scenario of
ready-made garment segment in domestic and international markets
enables well for the entity.

* Constitution of the entity as partnership with inherent risk of
withdrawal of capital: Partnership nature of business has an
inherent risk of withdrawal of capital by the partners at the time
of their personal contingencies resulting in erosion of capital
base leading to adverse effect on capital structure.

Key Rating Strengths

* Long track record and experience of partners for more than one
decade in textile industry: ST was promoted by Mr. Chandrashekar
and his brother Mr. Krishnakumar. Mr. Krishnakumar is a qualified
B.Com graduate. He is the Managing Partner of the firm who takes
care of day to day operations. The other partner Mr. Chandrashekar
is a qualified graduate in BBM. Both the partners have more than
one decade of experience in the textile industry. The operations of
the firm are also supported by experienced executive team. Through
their experience in this industry, they have established healthy
relationship with suppliers and of clients.

* Increase in total operating income in FY18 (refers to the period
April 1- March 31) and satisfactory profitability margins: The
total operating income of the company increased by 38% and stood at
INR98.42 crore in FY18 as compared to INR71.12 crore in FY17 at the
back of continued demand from the existing customers. The PBILDT
margin of the firm remained satisfactory which improved by 53 bps
from 5.90% in FY17 to 6.43% in FY18. Despite increase price of
input costs such as yarn prices, manpower, processing charges and
various business expenses, the execution of high margin orders
resulted in absorption of increased operating costs. The PAT margin
of the firm was also satisfactory in FY18 at 3.64% as against 3.78%
in FY17. During FY18, the PAT margin declined mainly on account of
increase in the interest cost as a result of utilization of
fund-based limits.

* Satisfactory debt coverage indicators: The company reported
improved GCA which amounted to INR4.91 crore (PY: INR3.61crore)
resulting in improved TD/GCA in FY18 which stood at 3.76x as
against 4.29x in FY17. The interest coverage, however, deteriorated
from 7.63x in FY17 to 4.04x in FY18 owing to increase in interest
cost. Overall, the improvement in scale of operations leading to
increased operating profits to the firm resulted in satisfactory
debt coverage ratios.

* Reputed clientele base: The firm undertakes orders for customers
in the textile industry which are having reputed brand name in
manufacturing, wholesale and retail apparel segment.

Tirupur based, Shine Textile (ST) was established in 2007 and
promoted by Mr. Chandrashekar and Mr. Krishnakumar is engaged in
order-based manufacturing of knitted t-shirts, sweat shirts,
hoodies, jackets, woven garment for children and sells the final
products for reputed branded apparel retails.

SKP STEEL INDUSTRIES: Insolvency Resolution Process Case Summary
----------------------------------------------------------------
Debtor: SKP Steel Industries Private Limited
        Diamond Prestige, 41A
        A.J.C. Bose Road
        6th Floor, Suit No. 612
        Kolkata WB 700017
        IN

Insolvency Commencement Date: February 8, 2021

Court: National Company Law Tribunal, Howrah Bench

Estimated date of closure of
insolvency resolution process: August 7, 2021
                               (180 days from commencement)

Insolvency professional: Mr. Uday Narayan Mitra

Interim Resolution
Professional:            Mr. Uday Narayan Mitra
                         72/1, Dawnagazi Road
                         Bally, Howrah
                         West Bengal 711201
                         E-mail: udaynarayanmitra@yahoo.co.uk
                                 cirp.skpsteels@gmail.com
                         Mobile: 94335-32994
                                 8240850244

Classes of creditors:    Inter Corporate Depositors

Insolvency
Professionals
Representative of
Creditors in a class:    Sneh Maheswari
                         9N Block A, New Alipore
                         Kolkata, West Bengal 700053

                         Bimal Kanti Choudhury
                         B.K Choudhury & Associates
                         Chartered Accountants
                         77/A 50 Raja S.C. Mallick Road
                         8 S.P.B Block, Kolkata
                         West Bengal 700092

                         Sushanta Kumar Choudhury
                         64, Hem Chandra Naskar Road
                         Beleghata, Kolkata 700010

Last date for
submission of claims:    February 22, 2021


SUPREME BATTERIES: CARE Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Supreme
Batteries Pvt Ltd. (SBPL) continue to remain in the 'Issuer Not
Cooperating' category.

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long Term Bank       33.55      CARE D; ISSUER NOT COOPERATING
   Facilities                      Rating continues to remain
                                   under ISSUER NOT COOPERATING
                                   category

   Short Term Bank      10.50      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 10, 2019, placed
the rating of SBPL under the 'issuer non-cooperating' category as
SBPL had failed to provide information for monitoring of the
rating. SBPL continues to be non-cooperative despite repeated
requests for submission of information through phone calls and
email dated December 14, 2020, December 21, 2020 and January 7,
2021. 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 December 10, 2019 the following were
the rating strengths and weaknesses (updated for the information
available from Registrar of Companies):

Key Rating Weaknesses

* Stretched liquidity position: The liquidity profile of the
company is poor marked by lower accruals when compared to repayment
obligations. Based on interaction with bankers, there are ongoing
delays in interest and principal repayments obligations towards the
bank. Also there have been instances of LC devolvement.

Supreme Batteries Private Limited (SBPL) was initially established
as a partnership firm in 1982 and was incorporated as a private
limited company in the year 2001 and is promoted by Mr. Vimal Kumar
Agarwal, Mr. Anuj Agarwal and Mr. Ajay Goyal. However, commercial
production commenced from the month of September 2009.


SUPREME MILLS: CARE Lowers Rating on INR5.75cr LT Loan to B
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Supreme Mills India Private Limited (SMIPL), as:

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long Term Bank       5.75       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 March 19, 2020, placed the
rating(s) of SMIPL under the 'issuer non-cooperating' category as
SMIPL had failed to provide information for monitoring of the
rating. SMIPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails, phone calls
and email dated January 15, 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 ratings have been revised on account of non-availability of
requisite information due to non- cooperation by SMIPL 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 March 19, 2020 the following were the
rating strengths and weaknesses.

Key Rating Weakness

* Small scale of operation: The scale of operation stood small
marked by TOI of INR19.74 crore in FY19 and tangible net worth base
of INR3.36 crore as on March 31, 2019.

* Moderately leveraged capital structure and weak debt coverage
indicators: The overall gearing stood moderately leveraged at 1.88x
as of March 31 2019 as against 1.55x as of March 31 2018. The total
debt/GCA has marginally declined from 9.39x in FY18 to 9.71x in
FY19.The interest coverage ratio marginally improved from
2.01x in FY18 to 2.03x in FY19.

* Working capital intensive nature of operations: The operating
cycle of SMIPL stood elongated at 97 days in FY19 as compared to 90
days in FY18 majorly due to nominal increase average inventory
period days in FY19. Average collection and creditor days stood at
around 60 and 30 days during FY19.

* Highly fragmented industry and competitive business segment due
to presence of numerous players: The company is into a fragmented
business segment and competitive industry. The market consists of
several small to medium-sized companies that compete with each
other along with several large enterprises.

Key Rating Strengths

* Experience of the promoters in textile industry: The managing
director, Mr. G. Arulmozhi has experience of about three decades in
the textile industry. Prior to establishing SMIPL, he was engaged
in trading of textile machinery through his association with
Premier Associates which was established in 1998. Prior to
establishing Premier Associates, he was working with Super Sales
Engineering for about 12 years. Ms. Sujini, has 17 years of
experience in this field through her association with SMIPL since
its inception in 2000.

* Financial performance marked by growth in operating income along
with satisfactory PBILDT margin and thin PAT margin: The total
operating income in FY19 improved and stood at INR19.74 crore as
against INR18.53 crore in FY18.The PBILDT margin improved from
6.40% in FY18 to 7.31% in FY19. The PAT margin stood stable at
0.97% in FY19 as against 0.99% in FY18.

Supreme Mills India Private Limited (SMIPL) was incorporated on
November 13, 2000 by Mr. G. Arulmozhi and Ms. A. Sujini in
Coimbatore, Tamil Nadu. The company is engaged in manufacturing of
cotton yarn which finds its application primarily in manufacturing
bed sheets and towels.

TAU AGRO: CARE Reaffirms B+ Rating on INR15cr LT Loan
-----------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of Tau
Agro Sales Pvt. Ltd., as:

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long Term Bank
   Facilities           15.00      CARE B+; Stable Reaffirmed

Detailed Rationale & Key Rating drivers

The rating assigned to the bank facilities of Tau Agro Sales
Private Limited continues to remain constrained by small, though
increasing scale of operations, deteriorating profitability
margins, weak overall solvency position and elongated operating
cycle. The rating is further constrained by susceptibility to
fluctuation in raw material prices and monsoon dependent
operations, fragmented nature of industry coupled with high level
of government regulation. The rating, however, derives strength
from experienced promoters with long track record of operations and
favourable location of plant.

Rating Sensitivities

Positive Factors:

* Increase in scale of operations with total operating income of
more than INR90.00 crore on a sustainable basis.

* Improvement in profitability margins as marked by PBILDT and PAT
margins above 7.00% and 2.00% respectively.

* Improvement in capital structure marked by overall gearing ratio
below 1.50x.

* Improvement in debt coverage indicators as marked by interest
coverage and TDGCA ratios above 2.00x and above 10.00x,
respectively.

Negative Factor:

* Decline in scale of operations by more than 20% on sustained
basis.

* Any significant deterioration in the solvency position with
overall gearing ratio deteriorating to 2.00x owing to debt funded
capex, increased working capital reliance, etc.

Key Rating Weaknesses

* Small, though increasing scale of operations and deteriorating
profitability margins: The scale of operations of the company
witnessed an increasing trend as the TOI of the firm increased from
INR70.41 crore in FY19 to INR78.27 lakh in FY20 at a growth rate of
~11% due to higher orders executed during the period. The small
scale limits the company's financial flexibility in times of stress
and deprives it of scale benefits. In 9MFY21 (Prov.), the company
has achieved an income of INR55.00 crore. The PBILDT margins
declined from 5.13% in FY19 to 3.51% in FY20 as the company
compromised on margins to increase its sales as well as due to
fluctuation in raw material prices. Subsequently, PAT margin also
declined marginally from 0.48% in FY19 to 0.33% in FY19 due to
decrease in PBILDT in absolute value terms.

* Weak overall solvency position:  The capital structure of the
company stood leveraged and improved on a year-on-year basis marked
by overall gearing ratio of 1.73x as on March 31, 2020 (PY: 2.73x)
due to lower utilization of working capital limits. The interest
coverage ratio improved marginally from 1.36x in FY19 to 1.47x in
FY20 due to lower interest expenses incurred. The total debt to GCA
ratio stood weak and improved on a year-on-year basis to 20.07x
(PY: 22.53x) due to lower in total debt outstanding as on balance
sheet date.

* Susceptibility to fluctuation in raw material prices and monsoon
dependent operations: Agro-based industry is characterized by its
seasonality, due to its dependence on raw materials whose
availability is affected directly by the vagaries of nature. The
price of rice moves in tandem with the prices of paddy.
Availability and prices of agro commodities are highly dependent on
the climatic conditions. Adverse climatic conditions can affect
their availability and leads to volatility in raw material prices.
Any sudden spurt in raw material prices may not be passed on to
customers completely owing to company's presence in highly
competitive industry.

* Fragmented nature of industry coupled with high level of
government regulation: The commodity nature of the product makes
the industry highly fragmented with numerous players operating in
the unorganized sector with very less product differentiation.
There are several small scale operators which are not into
end-to-end processing of rice from paddy, instead they merely
complete a small fraction of processing and dispose-off
semi-processed rice to other big rice millers for further
processing. Furthermore, the concentration of rice millers around
the paddy growing regions makes the business intensely competitive.
The raw material (paddy) prices are regulated by government to
safeguard the interest of farmers, which in turn limits the
bargaining power of the rice millers.

Key rating Strengths

* Experienced promoters and long track record of operations: TASPL
is a private limited company with track record of around two
decades in agro processing industry. The company is currently being
managed by Mr. Mangat Ram Garg, Mr. Shyam Sunder, Mr. Rajinder Garg
and Mr. Ravinder Garg. The directors have industry experience
ranging from 30 years- 50 years through their association with
TASPL and other entities. Prior to TASPL, the directors were
associated with Tau and Company which was into wholesale trading of
sugar and tea. The long track record has aided the company in
establishment of strong relationships with suppliers as well as
customers.

* Favourable location of plant: TASPL's manufacturing unit is
located in Faridkot, Punjab. The area is one of the hubs for
paddy/rice, leading to its easy availability. The unit is also in
proximity to the grain market resulting in procurement at
competitive rates. The presence of TASPL in the vicinity of paddy
producing regions gives it an advantage over competitors operating
elsewhere in terms of easy availability of the raw material as well
as favourable pricing terms.

* Stretched liquidity analysis:  The company's liquidity ratios
remained moderate as reflected by current ratio of 1.43x and quick
ratio of 0.39x as on March 31, 2020. The operating cycle of the
company remained elongated at 100 days as on March 31, 2020 (PY:
122 days). The average utilization of cash credit limit stood at a
high level of around 90% for the last 12 months period ended
December, 2020. The company had a low level of free cash and bank
balance of INR0.63 crore as on March 31, 2020. However, the company
has not availed the moratorium period in light of COVID-19
pandemic.

Tau Agro Sales Pvt. Ltd. was incorporated as a private limited
company in 1997 and it is currently being managed by Mr. Mangat Ram
Garg, Mr. Shyan Sunder, Mr. Rajinder Garg and Mr. Ravinder Garg. It
is engaged in processing of paddy at its manufacturing facility
located in Faridkot, Punjab with an installed capacity of 9 Metric
Tonnes of paddy per annum as on December 31, 2020. It is also
engaged in trading of rice. TASPL sells rice primarily to various
rice wholesalers through dealers based in Delhi, Uttar Pradesh,
Haryana, Rajasthan, etc.

TIERRA FOOD: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Tierra Food India Private Limited
        7/491, Kinfra Food Processing Park
        26 Elamanoor, Pathanamthitta
        KL 691524
        IN

Insolvency Commencement Date: February 8, 2021

Court: National Company Law Tribunal, Kochi Bench

Estimated date of closure of
insolvency resolution process: August 8, 2021

Insolvency professional: Mr. K.P. Dileep

Interim Resolution
Professional:            Mr. K.P. Dileep
                         Veluthedath House
                         Ponnurunni, Vytilla PO
                         Cochin 682019
                         E-mail: kpdileep57@gmail.com

Last date for
submission of claims:    February 22, 2021


VENKATACHALAPATHY SAGO: CARE Lowers Rating on INR10cr Loan to B-
----------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of Sri
Venkatachalapathy Sago Factory (SVSF), as:

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long Term Bank       10.00      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 January 28, 2020, placed the
rating(s) of SVSF under the 'issuer non-cooperating' category as
SVSF had failed to provide information for monitoring of the
rating. SVSF continues to be non-cooperative despite repeated
requests for submission of information through e-mails, phone calls
and email dated January 15, 2021. 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 SVSF 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 January 28, 2020 the following were
the rating strengths and weaknesses:

Key Rating Weakness

* Small scale of operations and fluctuating profitability margins
during the review period: SVSF was established in the year 2014.
The total operating income stood small at INR46.68 crore in FY18
(Prov.) with a low net worth base of INR1.43 crore as on March 31,
2018 (Prov) when compared to other peers in the industry. The
profitability margins of the firm were fluctuating during the
review period. The PBILDT margin decreased from 2.38% in FY16 to
1.22% in FY18 (Provisional), due to fluctuation in price of raw
material and other manufacturing expenses. The firm incurred net
loss in FY16 and FY17 due to increase in depreciation and interest
cost.

* Leveraged capital structure and weak debt coverage indicators:
The capital structure of the firm remained leveraged during review
period. The debt equity ratio of the firm has been improving
year-on-year and remained below unity during the last three
financial years due to repayment of term loans. Furthermore, the
overall gearing ratio stood leveraged, however improved year on
year from 12.35x as on March 31, 2016 to 4.52x as on March 31,
2018(Prov) due to repayment of long term loan coupled with increase
tangible networth along with infusion of capital by the partners of
INR0.83 crore. The debt coverage indicators of the firm though
improved remained weak marked by total debt/GCA improved from
188.51x in FY16 to 16.49x in FY18 (prov.) due to decrease in total
debt. The PBILDT interest coverage ratio, improved from 1.07x in
FY15 to 3.31x in FY18 (Prov.) due to decrease in interest cost
associated with repayment of debt.

* Constitution of the entity as a partnership firm: SVSF, being a
partnership firm, is exposed to inherent risk of the partner's
capital being withdrawn at time of personal contingency and firm
being dissolved upon the death/retirement/insolvency of the
partners. Moreover, partnership firm business has restricted
avenues to raise capital which could prove a hindrance to its
growth. However, the partners infused capital of INR0.83crore.

Key Rating Strengths

* Experience of partners for two decades in sago manufacturing:
SVSF was promoted by Mr. R Durairaj (Managing Partner), Mr. D.
Thilakam (partner) and Mrs. D. Vishnupriya (partner). Partners have
about 20 years of experience in sago processing business. Through
this experience in the sago processing, they have established
healthy relationship with key suppliers, customers, local farmers,
dealers and also with the brokers facilitating easy flow of sago
business within the state. Growth in total operating income during
review period The total operating income of the firm has increased
at a Compounded Annual Growth Rate (CAGR) of 34.17% from INR25.93
crore in FY16 to INR46.68 crore in FY18 (Prov) due to increase in
installed capacity from 18000 kgs to 25000 kgs.

* Comfortable operating cycle during review period: The operating
cycle of the firm remained comfortable at 41 days in FY18 (Prov.).
The firm receives the payment from its customer within 10-15 days
and makes the payment to its supplier within 25-35 days. The firm
holds the average inventory of around 60-80 days to meet the
requirements of the customers. The average utilization of the
working capital limit stood at 70% for the last 12 months ended
June 30, 2018.

* Locational advantage with presence in cluster and easy
availability of tapioca root: The Sago manufacturing unit of SVSF
is located in Salem district, which is the top district for
producing sago in Tamil Nadu, which ensures easy raw material
access and smooth supply of raw materials at competitive prices and
lower logistic expenditure.

* Healthy demand outlook of tapioca: The global tapioca market is
expected to grow steadily at a CAGR of around 3% by 2021. Tapioca
is high in carbohydrates and free from nut, grain, this helps
prevent food allergies, celiac disease, and gluten sensitivity.
Tapioca also helps in the reduction of cholesterol levels and the
tapioca flour has a high amount of fiber that helps maintain blood
sugar level and prevent constipation. Tapioca flour is a source of
calcium, folate, manganese, and iron which is beneficial for
pregnant women and helps metabolize carbohydrates. Moreover,
tapioca also extends the feeling of fullness and helps avoid
overeating. The increased awareness on the health benefits of
tapioca will be one of the major factors fueling the growth of the
tapioca market during the next few years.

Sri Venkatachalapathy Sago Factory (SVSF) was established in 2014
as a partnership firm. SVSF is engaged in manufacturing of sago.
The Sago manufacturing unit of the firm is located at Attur Main
Road, Mettala, Karkudalpatty, Salem. The lender has confirmed that
the entity has not availed moratorium announced by RBI on COVID-19
from March 2020 to August 2020.

[*] INDIA: Court Issues Notice in Appeal vs. NCLAT Order on NPA
---------------------------------------------------------------
India Legal reports that the Supreme Court on Feb. 10 issued notice
in an appeal against the NCLAT order which had held that entries in
the balance sheet of the company do not constitute an
acknowledgement of liability in terms of Section 18 of the
Limitation Act, 1963. This is for the purpose of filing an
application for initiation of the corporate insolvency resolution
process (CIRP) under the Insolvency and Bankruptcy Code, 2016.

According to India Legal, the bench comprising Justices R.F.
Nariman, Hemant Gupta and B.R. Gavai was hearing an appeal filed by
the Stressed Assets Stabilization Fund against the 5-bench NCLAT
judgment, which had turned down reference by a three-member bench
to reconsider the decision in V Padmakumar vs Stressed Assets
Stabilization Fund & Anr.

India Legal relates that the debt in question was incurred in March
2000, when Uthara Fashion Knitwear Limited (Corporate Debtor)
availed a loan of INR600 lakh from the Industrial Development Bank
of India (IDBI), the original lender. The loan was classified as a
Non-Performing Asset (NPA) on May 29, 2002.

In 2003, IDBI filed an application for recovery under Section 19 of
the Recovery of Debts and Bankruptcy, Insolvency Resolution and
Bankruptcy of Individuals and Partnership Firms Act, 1993 (RDB
Act), which was decreed on June 19, 2009, and a recovery
certificate was issued on August 31, 2009, India Legal says. The
debt was reflected in the Corporate Debtor's balance sheet for the
year ending March 31, 2012. The question before the bench was
whether the application filed under Section 7 of the IBC (by the
Respondent to whom the debt was assigned by IDBI) filed in 2019 was
barred by limitation. The bench answered the question in the
affirmative.

India Legal says placing reliance on the decision of the Supreme
Court in Gaurav Hargovindbhai Dave v Asset Reconstruction Company
(India) Limited and another (2019) 10 SCC 572 and V. Hotels Limited
v Asset Reconstruction Company (India) Limited, the NCLAT had
observed that for the purposes of computing the period of
limitation for an application under Section 7 of the IBC, the right
to sue occurs from the date of default. Accordingly, in this
regard, the date of classification as an NPA is crucial.



=================
I N D O N E S I A
=================

TOWER BERSAMA: S&P Upgrades ICR to BB+ on Business Resilience
-------------------------------------------------------------
On Feb. 10, 2021, S&P Global Ratings raised its long-term issuer
credit rating on PT Tower Bersama Infrastructure Tbk. (TBIG)  to
'BB+' from 'BB'. S&P also raised the long-term issue rating on the
company's guaranteed senior unsecured notes to 'BB+' from 'BB'.

S&P said, "The stable outlook reflects our expectation that TBIG
will maintain its solid market position and stable cash flows,
while managing its capital spending and shareholder distributions
to preserve its debt-to-EBITDA ratio at 5.0x-5.5x over the next
12-24 months.

"We raised our rating on TBIG because we believe the company will
maintain its resilient and high-quality cash flows, and strong
funding access over the next 12-24 months." TBIG has built a record
of financial discipline by balancing its shareholder-friendly
actions and capital spending with cash needs to maintain a
debt-to-EBITDA ratio of 5.0x-5.5x.

TBIG's recent liquidity boost has extended its debt maturity
profile and will reduce the company's reliance on funding sources
that are sensitive to market sentiment.  The company's liquidity
sources are now sufficient to meet liquidity uses over the next 12
months. TBIG has raised close to Indonesian rupiah (IDR) 12
trillion of fresh funds since Sept. 30, 2020. These funds will help
the company meet the IDR5.9 trillion of debt maturing in the 12
months to Sept. 30, 2021. At the same time, the US$275 million term
loan due in June 2021 has been pushed out to 2026 and the company
has announced an early redemption on Feb. 22, 2021 for the next
US$350 million bond maturing in February 2022. The fresh funds will
also support the IDR3.975 trillion acquisition of the PT Inti
Bangun Sejahtera Tbk. (IBST) tower portfolio.

S&P said, "We believe TBIG's ability to refinance at lower costs
reflects strong investor confidence and should improve the
company's interest coverage ratios.  In our opinion, the lower
refinancing costs also reiterate TBIG's ease of market access. We
estimate the company's EBITDA interest coverage will improve to
2.3x-2.5x in 2022, compared with 1.9x-2.1x over 2015-2019."

In January 2021, TBIG raised a US$300 million five-year bond at
2.75%. This is a significant 150 basis points lower than the 4.25%
that was priced for its US$350 million five-year bond issued in
January 2020. S&P believes the lower cost points to investor
confidence after the company's business resilience was tested and
proven in 2020. Despite the COVID-19 pandemic, TBIG's revenue in
the first nine months of 2020 was about IDR3.9 trillion, up 13.5%
from the same period last year. The company accessed debt capital
markets four times in 2020, with issuances of three
rupiah-denominated bonds and one U.S. dollar-denominated bond, even
though liquidity was tight in Indonesia. TBIG's strong liquidity
access was further bolstered by long-standing relationships with
its key banks.

TBIG's acquisition of the IBST tower portfolio will boost the
company's earnings base, with the quality of the resultant
portfolio remaining satisfactory.  S&P said, "We now project TBIG's
adjusted EBITDA will rise 13%-15% in 2021. This is better than our
previous forecast of an organic adjusted EBITDA growth of 6%-8%. We
expect the acquisition to be completed by the end of the first
quarter of 2021." Based on TBIG's sites as of Sept. 30, 2020, the
acquisition would increase sites by about 18.5%. Given that tower
leases are typically for 10 years and enjoy a high renewal rate,
this acquisition will likely translate into an enduring expansion
of TBIG's earnings base.

S&P said, "In our view, the overall quality of TBIG's enlarged
portfolio will remain satisfactory. This is despite our expectation
that the IBST portfolio will be of slightly weaker quality, with a
lower tenancy ratio and profitability than TBIG's. We now forecast
the enlarged portfolio's tenancy ratio will remain at 1.9x-2.0x
over the next two years. Although this is an improvement from 1.85x
in 2019, we had previously expected TBIG's tenancy ratio to move to
above 2x in 2021. In addition, we believe the addition of the IBST
portfolio will reduce the portion of revenue TBIG derives from the
top three telecom operators in Indonesia, PT Telekomunikasi Selular
Tbk., PT Indosat Tbk., and PT XL Axiata Tbk., which was about 78%
as of Sept. 30, 2020.

"We anticipate TBIG will continue to calibrate shareholder
distributions to keep leverage in check.  We believe TBIG will
continue to balance shareholder-friendly actions and necessary
capital expenditure (capex) such that its ratio of debt to EBITDA
will remain close to 5.0x-5.5x. This leverage level also provides
TBIG with some headroom against its financial covenants.

"We expect shareholder-friendly actions to be scaled back this year
from our previous expectations, due to the acquisition of the IBST
portfolio. In anticipation of the acquisition, TBIG's dividends and
share buybacks were rather muted in 2020, amounting to about IDR620
billion in the first nine months. No dividends were declared in the
last quarter. We now forecast dividends and share buybacks to be
IDR800 billion-IDR1 trillion in 2021, down from our previous
estimate of around IDR2 trillion."

Historically, the company's extent of dividends and share buybacks
has been a function of maintaining a steady debt-to-EBITDA ratio.
From 2015 to 2019, TBIG's dividends and share buybacks ranged from
IDR650 billion to IDR1.5 trillion, while its ratio of debt to
EBITDA remained at 5.0x-5.5x. For example, over the past five
years, the company's capex was the highest in 2019 at slightly over
IDR2 trillion. The combined amount of its dividend payout and share
buybacks was substantially scaled back and was the lowest that year
in several years.

S&P said, "The stable outlook on TBIG reflects our expectation that
the company will maintain its solid market position and good client
relationships, underpinning its stable cash flows. It also reflects
our view that TBIG will manage its discretionary cash outflows such
that the company maintains its debt-to-EBITDA ratio at below 5.5x
and its EBITDA interest coverage at well over 2x over the next
12-24 months. In addition, we believe TBIG will maintain sufficient
liquidity by actively refinancing debt well in advance of
maturities.

"We may lower the rating if TBIG's appetite for debt-funded
acquisitions, capex, or shareholder returns increases beyond our
expectations. A debt-to-EBITDA ratio of above 5.5x or EBITDA
interest coverage of close to 2x with no prospect of recovery would
indicate such deterioration.

"We could raise the rating if TBIG demonstrates a commitment to a
more conservative financial policy such that we expect the
company's debt-to-EBITDA ratio to remain close to 4x, while it
maintains its cash flow quality."




=====================
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=====================

PACIFIC AEROSPACE: Financial Issues Described as 'Tragic'
---------------------------------------------------------
Radio New Zealand reports that the financial problems facing
Hamilton's aircraft manufacturer are being described as tragic.

Pacific Aerospace has told the Civil Aviation Authority that it is
insolvent, the report relates.

RNZ says the authority has ruled that its 108 planes can continue
to fly while issues concerning the company's certification are
worked through.

RNZ relates that deputy Mayor of Hamilton Geoff Taylor said the
company has been a fixture in the region for decades.

"2007 they celebrated 600 aircraft and the first iteration of the
company I think was way back to the 1950s so they go way back and
they're a great source of pride in Hamilton."

Mr. Taylor said although it's early days, the council will do what
it can to support the business and its employees, RNZ relays.

STA TRAVEL: Court May Decide Fate of Money Owed to NZ Customers
---------------------------------------------------------------
Stuff.co.nz reports that STA Travel liquidators may seek court
direction on how to distribute money recovered after three related
companies collapsed last year owing NZD11 million.

In a statement posted on its website, liquidator Deloitte said it
was still investigating customer refunds and credits sitting with
airlines and third party suppliers, Stuff relates.

Although some money had been recouped and was being held in trust,
it was still pursuing a "large portion" outstanding.

It was now seeking funding to cover the cost of applying to the
Court for direction on how to distribute refunds to 1,100 STA
Travel Group customers registered as creditors, according to
Stuff.

"While the liquidators are dealing with this matter urgently, we do
not expect resolution of this matter until the first quarter of
2021."

According to Stuff, the delay and lack of information has been
frustrating for New Zealand customers, some of whom were owed
thousands of dollars for Covid-related travel cancellations when
STA Travel collapsed in August last year.

Lucie Langley's family had invested NZD12,000 in a trip to the UK,
and because she paid via a debit card and a bank transfer, action
by the liquidator appeared to be her only chance of getting any of
it back, Stuff says.

"It has just disappeared without a trace.  We lost all hope once
Westpac said they don't do chargebacks because of the way we paid,"
Stuff quotes Ms. Langley as saying.

Ms. Langley said she was disappointed with the lack of
communication from Deloitte, and was unaware of the possibility of
a court case.

Half a dozen other STA Travel customers voiced similar complaints
to Stuff about the lack of contact from Deloitte, Stuff notes.

STA Travel customers can apply for a chargeback from their credit
or debit card provider.

Stuff says Refund Club has developed software to help apply for
chargebacks, and chief executive Nick Bartlett said a few STA cases
were still coming through, but almost all of them had a departure
date more than 120 days ago, so they could not be refunded.

However, banks had approved 79 chargebacks, resulting in refunds of
NZD204,000.

Almost all the 74 applications rejected were because flight
departure dates were beyond the 120- day deadline, Stuff notes.

                         About STA Travel

STA Travel, which originally stood for Student Travel Australia,
but was later rebranded Student Travel Association, was founded in
1971, and specialised in long-haul, adventure and student travel.

Jason Mark Tracy and Timothy Bryce Norman of Deloitte were
appointed as administrators of STA Travel Pty. Ltd., STA Travel
Academic Pty Limited, and IEP Pty Limited on Aug. 21, 2020.

On Aug. 24, 2020, David Webb and Colin Owens of Deloitte were
appointed as administrators of STA Travel (NZ) Limited, IEP New
Zealand Limited, and NNS New Zealand Limited.

In August, the Zurich-based parent company of STA Travel, which has
52 UK stores, filed for insolvency and appointed an external
administrator.

Swiss holding company STA Travel Holding AG, which is owned by
Diethelm Keller Holding (DKH), said that the COVID-19 pandemic had
"brought the travel industry to a standstill", Business Sale said.



=================
S I N G A P O R E
=================

AVATION PLC: S&P Cuts ICR to 'CC', Remains on CreditWatch Negative
------------------------------------------------------------------
On Feb. 10, 2021, S&P Global Ratings lowered its long-term issuer
credit rating on Avation PLC to 'CC' from 'CCC-'. S&P also lowered
its long-term issue rating on the Singapore-headquartered aircraft
lessor's guaranteed senior unsecured notes to 'C' from 'CC' based
on the recovery rating of '5' on the notes. The ratings remain on
CreditWatch with negative implications.

S&P lowered the long-term issuer credit rating on Avation to 'CC'
because we expect the company's unsecured bondholders to receive
less than the original promise as part of the proposed debt
restructuring.

Avation has made an agreement in principle with bondholders to
extend the maturity of its US$342.6 million bond by 5.5 years to
October 2026. At the company's discretion, bondholders may receive
either an additional 2.5% payment-in-kind coupon or a 1.75% cash
coupon, on top of fixed coupon of 6.5%. The extension of the
maturity and the proposed revised terms are not in line with the
original terms of the bond.

S&P foresees a high likelihood of a conventional payment default in
the absence of the proposed transaction, given the sizable maturity
and Avation's low operating cash flow.

Over the next three months, the company will likely require over
US$350 million to cover its maturing debt and scheduled
amortizations. Avation has deferred some loan amortization with its
banks. S&P said, "However, we believe the company's liquidity
sources of US$125 million in cash and operating cash flow will be
insufficient, with a cash deficit we estimate to be over US$250
million. Avation repossessed 11 turboprops from Virgin Australia
Holdings Ltd. in 2020 while another client, Philippine Airlines
Inc., announced a restructuring in November, which we expect to
result in a reduction of lease rates. Further lease adjustments at
reduced rates, aircraft repossessions, and lease deferments will
eat into Avation's balance sheet and chalk up higher impairment
charges."

CreditWatch

The CreditWatch placement reflects the likelihood of a further
downgrade to SD once the debt restructuring is completed, targeted
by early March 2021.

Avation and its subsidiaries lease commercial passenger aircraft to
airlines worldwide. As of June 2020, the company managed a fleet of
48 aircraft. Avation was founded as a narrow-body aircraft lessor
in 2006 and is headquartered in Singapore. For fiscal 2020, the
company reported revenue of US$135 million and EBITDA of US$91
million.

As of June 2020, Avation had breached its covenant of maintaining a
ratio of minimum tangible net worth to net debt of 23%. The
carrying value of borrowings subject to this covenant of US$119.4
million was classified as a current liability as of June 30, 2020,
but the group obtained a waiver of the breach on Oct. 21, 2020. S&P
believes Avation will continue breaching this covenant and rely on
waivers from its senior lender.

The 'C' issue rating and recovery rating of '5' on Avation's
guaranteed senior unsecured notes reflect our expectation of modest
(10%-30%) recovery prospects for lenders in the event of a payment
default. S&P revised simulated scenario envisages a default as
early as 2021, considering the current trading environment and the
company's debt maturity profile.

In S&P's recovery analysis, it uses discrete values of Avation's
assets, in particular its aircraft. This approach is consistent
with its evaluation of recovery prospects for aircraft leasing
companies globally.

-- Simulated year of default: 2021
-- Jurisdiction: Singapore
-- Net value available to creditors (after 5% administrative
costs, rounded): US$724 million
-- Secured claims: US$669 million*
-- Unsecured claims: US$354 million*
-- Unsecured recovery expectation: 10%-30%

*Rounded. All debt amounts include six months of prepetition
interest.


HIN LEONG: Jurong Port to Take Over Lim Family's Stake in Terminal
------------------------------------------------------------------
Reuters reports that government-owned Jurong Port is set to take
over the shares in a major oil storage terminal held by the Lim
family behind collapsed oil trader Hin Leong, three sources with
knowledge of the matter told Reuters.

Reuters says the deal marks the sale of the crown jewel among oil
and shipping assets owned by oil tycoon Lim Oon Kuin, better known
as O.K. Lim, his son Evan Lim Chee Meng and daughter Lim Huey
Ching.

It comes nearly a year after Hin Leong, once Asia's largest oil
trader, racked up some US$4 billion (SGD5.3 billion) in debt and
entered court restructuring, followed by Ocean Tankers and Xihe
Group also owned by the Lim family, Reuters says.

According to Reuters, Jurong Port is set to take over the Lim
family's stakes in the terminal, the sources said, declining to be
named as they are not authorised to speak to the media. The Lim
family managed and owned 41% of Universal Terminal through
Universal Group Holdings.

"Jurong Port's participation was well received by existing
investors as it's a neutral partner as compared with commercial
parties such as a trading house," said one of the sources told
Reuters.

The investment details were not immediately clear but a previous
sale of a stake in the terminal in 2016 valued the whole terminal
at more than US$1.5 billion, industry sources said at the time,
Reuters relates.

China's state energy company Sinopec had previously been in talks
to buy the Lim family's stakes, Reuters notes.

Reuters says some of the fuel stored at the terminal is being
claimed by creditors including Sembcorp Cogen Pte Ltd, a unit of
Sembcorp Industries, and Cooperative Rabobank U.A. Singapore.

Jurong Port has appointed an interim chief executive for the
terminal and has started marketing the storage space informally,
said two other sources, Reuters relates.

PetroChina International (Singapore) owns 25 per cent of the
terminal while MAIF Investments Singapore, a unit of Australian
investment bank Macquarie Group, holds the remaining 34 per cent,
Reuters discloses.

                      About Hin Leong Trading

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.

SEN YUE: Chairman May Have Breached Fiduciary Duties, Review Finds
------------------------------------------------------------------
Claudia Chong at The Business Times reports that the executive
chairman of Sen Yue Holdings may have breached his fiduciary duties
as a director through the "wilful non-disclosure" of his
relationships with seven customers of the company, a final
independent review has suggested.

This caused Sen Yue to breach Catalist rules 905, 906 and 907
related to interested-person transactions, the review conducted by
Foo Kon Tan Advisory Services (FKT) said, BT relays.

FKT concluded that the breaches arose as a result of the chairman's
non-disclosures, which went undetected by Sen Yue's existing
internal controls, BT says.

According to BT, the report noted that executive chairman Koh Mia
Seng likely indirectly controlled seven customers with whom Sen
Yue's wholly owned subsidiary SMC Industries (SMCI) had business
transactions.

There are reasons to believe that the sale of Mr Koh's shares in
some of the customer companies were not bona fide transactions, and
that he indirectly controlled the companies through certain
employees and shareholders, the report, as cited by BT, said.

BT relates that the report also suggested that by causing Sen Yue
to extend large credit limits to the seven customers, Mr. Koh
caused the company to be exposed to potential large losses.

According to BT, Sen Yue said on Feb. 10 that the material and long
outstanding accounts receivables are currently not considered
recoverable, in light of the historical payment track record of
these customers for the past year.

Mr. Koh, who was also managing director of SMCI, was suspended from
all executive functions on Jan. 8, and redesignated as
non-executive chairman on Jan. 13, BT recalls.

BT adds that FKT reiterated its earlier stance - that there were
possible fraudulent and/or fictitious transactions between SMCI and
some customers. For instance, the total liabilities of one customer
- Foshan City Nanhai District Sea Sheng Waste Materials Recycling
Co, or FSS - as at Dec. 31, 2019 was stated as CNY2.1 million
(SGD413,200). However, SMCI's accounting records showed that the
amount due from the customer was SGD21.3 million.

"Such a huge difference between the financial information of FSS
and SMCI's accounting records is alarming, and suggests that the
bulk of the amount due from FSS as per SMCI's accounting records is
not recognised by FSS in its accounts," FKT wrote in a summary of
the review, BT relays.

The transactions between SMCI and the seven companies amounted to
SGD51.4 million in FY2020, based on FKT's collation of sales and
purchases, BT discloses.

BT relates that the review further found that criminal offences
might have been committed. The possible offences involved, among
other things, possible forgery of a bank remittance advice and a
possibly false sales-and-purchase agreement created for improper
purposes.

Sen Yue chief executive and executive director Neo Gim Kiong and
audit committee chairman Chim Suan Kit Mark filed a report with the
Commercial Affairs Department on Jan. 5 over the same matters
highlighted in FKT's independent review released in June, BT
notes.

Sen Yue's ability to operate as a going concern is partially
dependent on continued provision of bank facilities and extension
of time for repayment granted by SMCI's creditors, the group said,
BT relays. The steering committee of SMCI is currently driving
negotiations with the creditors.

Sen Yue called for a trading halt at the end of April 2020, before
converting it to a suspension in May. Its shares last traded at 2.2
Singapore cents on April 27, BT notes.

                            About Sen Yue

Sen Yue Holdings Limited is an investment holding company. The
Company is principally engaged in three business verticals: e-waste
management solutions, commodities trading, and surface coating and
related services. The Company provides holistic e-waste management
solutions to local and overseas customers. It offers e-waste
management solutions in Singapore to recycle lithium-ion batteries.
The Company's commodities trading and processing business
activities is an extension of its e-waste management business by
creating new value in metal scraps. Its surface coating and related
services offer protection from corrosion and extend the service
life of its customers' products and components, while staying
environmentally friendly.



=====================
S O U T H   K O R E A
=====================

[*] SOUTH KOREA: Public Transit Operators in Deep Financial Trouble
-------------------------------------------------------------------
The Korea Herald reports that Seoul's public transportation
operators are in serious financial trouble as the number of bus and
subway users sharply dropped last year due to the coronavirus
outbreak.

According to the report, the Seoul Metropolitan Government said
Feb. 10 that 1.45 billion passengers used regular city and local
"maeul" buses last year, down 23.6 percent from 1.95 billion a year
earlier. The number of airport bus users dropped 85.4 percent
on-year to 2.12 million passengers.

The sharp decline in passengers caused the city government's
transit income to fall 29.1 percent to KRW473.8 billion ($425.7
million), the report says.

Maeul buses, which are run by private companies, saw a sharp fall
in number of passengers as many of them are based on routes near
college campuses, which remained largely empty last year due to the
switch to online classes, the Korea Herald says.

Many transit operators for maeul buses are facing a liquidity
crisis, as they are already struggling to pay for gas and wages of
their workers, the city government said, the report relays.

Airport buses likewise experienced a huge drop in their number of
passengers as demand for domestic and international flights
remained weak. The city government said a vast majority of airport
bus operators have stopped operating their routes to avoid
bankruptcy, according to the Korea Herald.

It was reported that regular city bus operators are in need of
additional KRW560.8 billion to cover the losses they made last
year.

"Support for the bus industry under trouble from COVID-19 has been
largely the role of local governments, but that is not enough for
the bus industry, which is on the brink of insolvency," a bus
industry representative said in a statement, the Korea Herald
relays.

"If the COVID-19 pandemic continues, the public transportation
ecosystem could be demolished, and central government support is in
dire need."

The situation is much similar for subway lines in Seoul, as people
increasingly avoided using public transit due to virus fears and as
social distancing rules diminished the demand for overall travel,
the report notes.

Seoul Metro, which manages eight subway lines in the greater Seoul
area, said Feb. 10 that its number of subway users last year
dropped 27.4 percent from a year earlier to 1.98 billion.

The subway operator's transit income likewise fell 27 percent to
KRW1.22 trillion last year, recording a net loss of KRW1.09
trillion, the Korea Herald discloses. The city government forecasts
that Seoul Metro will incur another KRW1.6 trillion of debt by this
year's end.

The city government said Seoul Metro had been in the red for years
as fares have stayed the same since 2015, the Korea Herald adds.


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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 2021.  All rights reserved.  ISSN: 1520-9482.

This material is copyrighted and any commercial use, resale or
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