/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/210218.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, February 18, 2021, Vol. 24, No. 30 Headlines A U S T R A L I A JUCY GROUP: Collapse Left AUD40.87 Million Debt to ASB KARMA3 TECHNOLOGIES: First Creditors' Meeting Set for Feb. 26 MGW AUSTRALIA: First Creditors' Meeting Set for Feb. 25 PITT DEVELOPMENT: First Creditors' Meeting Set for Feb. 25 PRO FUNDRAISING: First Creditors' Meeting Set for Feb. 25 SA STRUCTURAL: Second Creditors' Meeting Set for Feb. 25 TRITON BOND 2021-1: S&P Assigns B (sf) Rating to Class F Notes [*] Court Suspends Peter Ivan Macks as Liquidator for 3 Years C H I N A IONIX TECHNOLOGY: Ratifies Shijirun (Yixing) Tech's Incorporation I N D I A ANTONY LARA: CARE Lowers Rating on INR105.50cr Loan to D ARENA SUPERSTRUCTURES: CARE Cuts Rating on INR100cr Loan to D BAJAJ AGRO: CRISIL Keeps D Debt Ratings in Not Cooperating BALAJI SAHAKARI: CARE Keeps D Debt Rating in Not Cooperating BEST IT: CARE Moves D Debt Ratings to Not Cooperating Category BIDAR SOLAR: CARE Keeps D Debt Rating in Not Cooperating Category CHANDRA AUTOMOBILE: CRISIL Reaffirms B- Rating on INR7.15cr Loan CORUSCATION VIDYUT: CARE Keeps D Debt Rating in Not Cooperating DEEN DAYAL: CRISIL Reaffirms D Rating on INR9.5cr Loans FEST HOMES: CARE Lowers Rating on INR127cr LT Loan to D HOTEL RAJ: CARE Lowers Rating on INR15cr LT Loan to B- J G AGRO: CRISIL Keeps D Debt Rating in Not Cooperating Category J J HI TECH: CARE Keeps D Debt Rating in Not Cooperating Category JABALPUR MSW: CARE Keeps D Debt Rating in Not Cooperating Category JAGDAMBA POULTRY: CARE Keeps D Debt Rating in Not Cooperating JAIPRAKASH ASSOCIATES: CARE Reaffirms D INR20,867.57cr Loan Rating JAYPEE CEMENT: CARE Reaffirms D Rating on INR2,362.94cr Loans JB PATEL: CRISIL Reaffirms B+ Rating on INR1.0cr Cash Loan JBR IMPEX: CRISIL Keeps D Debt Rating in Not Cooperating Category KISHANGARH BEAWAR: CARE Reaffirms D Rating on INR1,080.23cr Loan MAA SUBHALA: CARE Reaffirms B+ Rating on INR8.80cr LT Loan PRASHANT ENTERPRISES: CARE Moves D Debt Rating to Not Cooperating RAJASTHAN BAL: CARE Moves D Debt Rating to Not Cooperating RELIGARE ENTERPRISES: Hopes to Finalize Unit's Debt Restructuring RIDDHI PRINT: CARE Moves D Debt Rating to Not Cooperating Category SHANTI HOSPITAL: CARE Lowers Rating on INR15cr LT Loan to D THANGAMMAN TEXTILES: CRISIL Reaffirms B Rating on INR2.4cr Loan VASAVI PIPES: CRISIL Keeps B Debt Ratings in Not Cooperating VENKATESWARA ENTERPRISES: CRISIL Reaffirms B+ Loan Ratings VIZAG COMPANYS: CRISIL Keeps D Debt Ratings in Not Cooperating WOODVILLE PALACE: CRISIL Keeps D Debt Rating in Not Cooperating I N D O N E S I A BARITO PACIFIC: Fitch Affirms Then Withdraws 'B' LongTerm IDR J A P A N KEISEI ELECTRIC: Egan-Jones Lowers Sr. Unsecured Ratings to BB+ TOBU RAILWAY: Egan-Jones Lowers Senior Unsecured Ratings to BB- M A L A Y S I A [*] MALAYSIA: Listed Companies Gain Temporary Relief Measures N E W Z E A L A N D SIKA HOMES: Homeowner Fights for Master Builders Guarantee - - - - - ================= A U S T R A L I A ================= JUCY GROUP: Collapse Left AUD40.87 Million Debt to ASB ------------------------------------------------------ Stuff.co.nz reports that the Australian and New Zealand Jucy rental car and campervan group of companies owed AUD40.87 million to ASB bank when receivers were appointed late last year. According to Stuff, receivership documents said the group, which included Jucy Group, Jucy Rentals, Jucy Holdings and Jucy by Design, was heavily affected by the COVID-19 related border closures and travel restrictions. At the time of its receivership in November, the group's direct and guaranteed debt to ASB was about AUD40.87 million, and one unsecured creditor was owed AUD930,000, Stuff discloses. As of May 2020, the group's assets were valued at AUD18.58 million and most of them were sold to Polar Capital in November when it purchased a majority stake in Jucy's New Zealand and Australian rental car and campervan operations, leaving a shortfall to the bank, Stuff relates. "It is unlikely there will be funds available for distribution to unsecured creditors from the receivership," the receivers' report said. Stuff says to preserve cash, directors Tim and Dan Alpe had restructured the business in May 2020, putting it into hibernation, laying off staff and rationalising property and vehicle leases before attempting to raise equity for the group. This process led to negotiations with Colin Neal's Polar Capital which purchased a majority stake in Jucy Group's rental businesses in New Zealand and Australia. As well as its rental cars and campervans, the Jucy brand had short-stay tourist accommodation in Auckland, Wellington, Christchurch and Queenstown, ran cruises on Milford Sound, and had operations in Australian and the US. According to Stuff, the receivers said they continued to pursue the realisation of residual assets of the group that were not included in the sale. On top of the hit Jucy took from the pandemic, in April it had almost 100 vehicles stolen from a parking area where they had been left unlocked, and 29 people were arrested for the thefts. It also received a AUD464,400 grant from the New Zealand government's rescue package for strategic tourism businesses for its Jucy Cruise trips, Stuff notes. KARMA3 TECHNOLOGIES: First Creditors' Meeting Set for Feb. 26 ------------------------------------------------------------- A first meeting of the creditors in the proceedings of Karma3 Technologies Pty Ltd will be held on Feb. 26, 2021, at 11:00 a.m. at the offices of Romanis Cant, 2nd Floor, 106 Hardware Street, in Melbourne, Victoria. Anthony Robert Cant and Renee Di Carlo of Romanis Cant were appointed as administrators of Karma3 Technologies on Feb. 16, 2021. MGW AUSTRALIA: First Creditors' Meeting Set for Feb. 25 ------------------------------------------------------- A first meeting of the creditors in the proceedings of MGW Australia Pty Ltd, trading as SIZZLING SIZZLING, will be held on Feb. 25, 2021, at 11:00 a.m. via ZOOM Meeting. Danny Vrkic & Daniel O'Brien of DV Recovery Management were appointed as administrators of MGW Australia on Feb. 15, 2021. PITT DEVELOPMENT: First Creditors' Meeting Set for Feb. 25 ---------------------------------------------------------- A first meeting of the creditors in the proceedings of Pitt Development Pty Limited will be held on Feb. 25, 2021, at 10:30 a.m. via video conference. Ozem Kassem and Jason Tang of Cor Cordis were appointed as administrators of Pitt Development on Feb. 15, 2021. PRO FUNDRAISING: First Creditors' Meeting Set for Feb. 25 --------------------------------------------------------- A first meeting of the creditors in the proceedings of Pro Fundraising Services Pty Ltd will be held on Feb. 25, 2021, at 10:00 a.m. via ZOOM Meeting. Atle Crowe-Maxwell of DBA Reconstruction and Advisory was appointed as administrator of Pro Fundraising on Feb. 15, 2021. SA STRUCTURAL: Second Creditors' Meeting Set for Feb. 25 -------------------------------------------------------- A second meeting of creditors in the proceedings of SA Structural Pty Ltd has been set for Feb. 25, 2021, at 2:00 p.m. via virtual meeting. Details for the virtual meeting to be held via Zoom are: https://us02web.zoom.us/j/84808199131?pwd=UzFqeEJ3VDM0RG1QSzRTMEthSUhlZz09 Meeting ID: 848 0819 9131 Passcode: 092893 The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Feb. 24, 2021, at 5:00 p.m. Andrejs Janis Strazdins of BRI Ferrier was appointed as administrator of SA Structural on Jan. 20, 2021. TRITON BOND 2021-1: S&P Assigns B (sf) Rating to Class F Notes -------------------------------------------------------------- S&P Global Ratings assigned its ratings to 10 classes of prime residential mortgage-backed securities (RMBS) issued by Perpetual Corporate Trust Ltd. as trustee for Triton Bond Trust 2021-1 Series 1. The ratings reflect: -- S&P's view of the credit risk of the underlying collateral portfolio, including the fact that this is a closed portfolio, which means no further loans will be assigned to the trust after the closing date. -- S&P's view that the credit support is sufficient to withstand the stresses it applies. This credit support comprises mortgage insurance covering 34.0% of the loans in the portfolio, as well as note subordination for all rated notes. --S&P's expectation that the various mechanisms to support liquidity within the transaction, including an amortizing liquidity facility equal to 1.0% of the invested amount of all notes subject to a floor of 0.10%, principal draws, and a loss reserve that builds from excess spread, are sufficient under our stress assumptions to ensure timely payment of interest. -- The extraordinary expense reserve of A$150,000, funded from day one by Columbus Capital Pty Ltd., available to meet extraordinary expenses. The reserve will be topped up via excess spread if drawn. -- The benefit of a fixed- to floating-rate interest-rate swap provided by National Australia Bank Ltd. to hedge the mismatch between receipts from any fixed-rate mortgage loans and the variable-rate RMBS, should any be entered into after transaction close. -- That loss of income for borrowers because of COVID-19 might put upward pressure on mortgage arrears over the longer term. In 2020 S&P updated its outlook assumptions for Australian RMBS in response to changing macroeconomic conditions as a result of the COVID-19 outbreak. The collateral pool at close for this transaction will not include any loans where the borrower has applied for a COVID-19 hardship payment arrangement. S&P Global Ratings believes there remains high, albeit moderating, uncertainty about the evolution of the coronavirus pandemic and its economic effects. Vaccine production is ramping up and rollouts are gathering pace around the world. Widespread immunization, which will help pave the way for a return to more normal levels of social and economic activity, looks to be achievable by most developed economies by the end of the third quarter. However, some emerging markets may only be able to achieve widespread immunization by year-end or later. S&P said, "We use these assumptions 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 Assigned Triton Bond Trust 2021-1 Series 1 Class A1-MM, A$150.00 million: AAA (sf) Class A1-AU, A$945.00 million: AAA (sf) Class A1-5Y, A$180.00 million: AAA (sf) Class A2, A$105.00 million: AAA (sf) Class AB, A$61.50 million: AAA (sf) Class B, A$24.00 million: AA (sf) Class C, A$18.00 million: A (sf) Class D, A$7.80 million: BBB (sf) Class E, A$4.20 million: BB (sf) Class F, A$2.10 million: B (sf) Class G, A$2.40 million: NR NR--Not rated. [*] Court Suspends Peter Ivan Macks as Liquidator for 3 Years ------------------------------------------------------------- The Supreme Court of South Australia on Feb. 12, 2021, handed down its penalty decision that Peter Ivan Macks' liquidator registration be suspended for a period of three years, commencing on a date yet to be fixed. Mr. Macks' suspension will begin when His Honour Justice Doyle hands down final orders. Pursuant to the decision, orders are also to be made for the removal of Mr. Macks from all current appointments as liquidator or receiver and manager, that Mr. Macks be restrained from accepting any kind of corporate insolvency appointment during his suspension period, and that he pay 50 per cent of ASIC's costs of the proceedings. The penalty decision follows His Honour Justice Doyle's decision that, on or about Feb. 25, 2010, Mr. Macks fabricated memoranda and placed on them the initials of other persons working at his firm, in order to deceive ASIC during its investigation into Mr. Macks' conduct as liquidator of Bernsteen Pty Ltd and Newmore Pty Ltd. Mr. Macks did so to create the false impression that he had justified the commencement and continuation of legal proceedings against a third party that owed money to Bernsteen, and that others at his firm concurred with his view. Ian Burford of Macks Advisory will become the sole appointee for all companies where Mr. Macks was removed. In his judgment, His Honour Justice Doyle said, 'The position of liquidator is a repository of public trust; the public is entitled to trust a liquidator to perform their functions to a high standard and with scrupulous attention to obligations of candour, honest and integrity. 'When a liquidator falls short of the standards expected of them, the public's trust in the office of liquidator is eroded. That in turn has a corrosive effect on the administration of the body of insolvency law, and consequently on the administration of justice.' Background ASIC first became involved in the proceedings against Mr. Macks in December 2014 by intervening to support a private application made by Mr. John Viscariello to remove Mr. Macks as liquidator of two companies only, Bernsteen and Newmore. Mr. Viscariello first commenced proceedings against Mr. Macks in 2006, alleging that Mr. Macks engaged in improper conduct in his capacity as a liquidator for Bernsteen and Newmore. The matter was decided by the Honourable Chief Justice of the Supreme Court of South Australia Chris Kourakis in 2014. In April 2015, His Honour made orders by consent that Mr. Macks be removed as liquidator of Bernsteen and Newmore and a new liquidator be appointed. Mr. Macks appealed the Supreme Court decision. In May 2015, ASIC filed its own separate application against Mr. Macks seeking various orders, including that the court conduct an inquiry into Mr. Macks. ASIC agreed to adjourn its own application pending the determination of Mr. Macks' appeal in the action brought against him by Mr. Viscariello, on the basis that Mr. Macks was to expedite his appeal. The Court inquiry initiated by ASIC, the subject of the decision of Feb. 12, 2021, was heard before His Honour Justice Doyle in the Supreme Court of South Australia between May 11, 2020, and May 18, 2020. ========= C H I N A ========= IONIX TECHNOLOGY: Ratifies Shijirun (Yixing) Tech's Incorporation ----------------------------------------------------------------- The Board of Directors of Ionix Technology, Inc. approved and ratified the incorporation of Shijirun (Yixing) Technology, Ltd., a limited liability company formed under the laws of the Peoples Republic of China (PRC) on Feb. 7, 2021. Well Best International Investment Limited, a limited liability company formed under the laws of Hong Kong Special Administrative Region, and a wholly owned subsidiary of the Company, is the sole shareholder of Shijirun. As a result, Shijirun is an indirect, wholly-owned subsidiary of the Company. Shijirun will head up the Company's advance into the new energy industry focusing on developing and producing high-end intelligent new energy equipment from Yixing City Jiangsu Province, China. About Ionix Headquartered in Liaoning Province, China, Ionix Technology, Inc. -- http://www.iinx-tech.com-- is a holding company that is principally engaged in the photoelectric display and smart energy industries. The company has five operating subsidiaries: Changchun Fangguan Electronics Technology Co., Ltd, a company which has been focusing on R&D, manufacturing and marketing LCM and LCD; Changchun Fangguan Photoelectric Display Technology Co., Ltd, a company which specializes in developing, designing, and selling TN and STN LCD, STN, CSTN, and TFT LCD modules as well as other related products; Shenzhen Baileqi Electronic Technology Co., Ltd, a company which specializes in LCD slicing, filling, researching and designing, and selling of LCD Modules (LCM) and PCBs; Lisite Science Technology (Shenzhen) Co., Ltd., a company engaged in the marketing and selling of intelligent electronic devices; and Dalian Shizhe New Energy Technology Co., Ltd., a company engaged in the new energy support service, and operating the photovoltaic power generation, electric vehicles and charging piles with corresponding operation and maintenance and three dimensional parking. Currently, IINX has embarked on the layout of industrialization and marketization of front end materials and back end modules of liquid crystal displays and applications of flexible folding display technology by taking Fangguan Electronics as production bases, to seize the market share of OLED high technology. Ionix reported a net loss of $277,668 for the year ended June 30, 2020, compared to net income of $397,047 for the year ended June 30, 2019. As of Sept. 30, 2020, the Company had $17.12 million in total assets, $7.23 million in total liabilities, and $9.89 million in total stockholders' equity. The Company had an accumulated deficit of $270,108 as of Sept. 30, 2020. The Company incurred loss from operation and did not generate sufficient cash flow from its operating activities for the three months ended Sept. 30, 2020. The Company said these factors, among others, raise substantial doubt about its ability to continue as a going concern. ========= I N D I A ========= ANTONY LARA: CARE Lowers Rating on INR105.50cr Loan to D -------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Antony Lara Enviro Solutions Private Limited (ALESPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank Facilities 105.50 CARE D Revised from CARE BBB-; Stable Short Term Bank Facilities 5.00 CARE D Revised from CARE A3 Detailed Rationale & Key Rating Drivers The revision in the ratings assigned to the bank facilities of ALESPL is in line with CARE Ratings criteria on the 'Policy on Default Recognition'; issued in the month of June, 2020. Detailed description of the key rating drivers Key Rating Weaknesses CARE has received intimation of default regarding delay in the payment of overdue amount pertaining to moratorium dues which were due from September 2020. The asset manager had approved moratorium for the PMDO consortium of the company, however, one of the lenders had not approved the moratorium and had requested payment on Nov. 25, 2020 along with reminder on Dec. 5, 2020 as communicated by the aforementioned lender which was not fully paid by the company, however overdue amount has been fully remitted by the company by Feb. 5, 2021. Further, as per due diligence undertaken with other lenders, there are no outstanding dues for the other respective facilities. Liquidity: Adequate The company has maintained DSRA to the tune of INR6.5 crore in the form of fixed deposits as on Feb. 5, 2021 and cash and bank balance amounting to INR16.55 crore as on March 31, 2020. Incorporated in July, 2009, Antony Lara Enviro Solutions Private Limited (ALESPL) is a Joint Venture between Antony Waste Handling Cell Limited (AWHCL) and Lara Central De Tratamento De Residuous De Ltda (LARA) wherein AWHCL holds 63% stake. AWHCL is one of the leading players in the field of Solid Waste Management services in the country with a track record of more than 2 decades. Through an international competitive bidding process, MCGM has appointed ALESPL, an SPV formed to undertake the implementation of an Integrated Solid Waste Management (ISWM) plant at Kanjurmarg with total capacity of 5000 tonnes/day for which it has entered into concession agreement with MCGM till 2036 for collection and processing of waste. ARENA SUPERSTRUCTURES: CARE Cuts Rating on INR100cr Loan to D ------------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Arena Superstructures Private Limited (ASPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 100.00 CARE D; ISSUER NOT COOPERATING Facilities 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 December 27, 2019; placed the rating of ASPL under the 'issuer non-cooperating' category as ASPL had failed to provide information for monitoring of the rating. ASPL continues to be non-cooperative despite repeated requests for submission of information through e-mails dated January 25, 2021; January 14, 2021 and January 8, 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 ratings have been revised on account of delays in servicing of debt obligations by the company and initiation of Corporate Insolvency Resolution Process (CIRP) against ASPL in NCLT upon default of loan availed from a financial creditor. Detailed description of the key rating drivers At the time of last rating on December 27, 2019 the following were the rating strengths and weaknesses (updated for the information available from Registrar of Companies, NCLT): Key Rating Weaknesses * Delay in servicing of debt obligation: There are ongoing delays in servicing of debt obligation by the company related to long term bank facilities. Also one of the financial creditors has initiated CIRP proceedings against ASPL, which has been admitted in NCLT for further hearing. * Residual Project Execution Risk coupled with high dependence on customer advances: ASPL is developing a residential group housing project by the name of "Arena 1" with a total salable are of 19.29 lsf. The land and necessary approvals for the said project have already been obtained. As on April 30, 2018, out of the total project cost of INR545.49 cr, the company has incurred INR299.95 crore i.e. 58% of total project cost. Further, the company has incurred 61% if the total construction cost till the same period. With considerable project cost yet to be incurred; the project is exposed to project execution risk. Further, the total project cost is proposed to be funded through INR57.50 crore of promoter's fund, 100 crore of debt and the balance from the customer advances. As on April 30, 2018, the promoters have infused INR55.96 cr and have availed a debt of INR87 cr with balance funds from the customers. Due to subdued demand scenario, in the last 12 months ending Apr'18, the company has been able to sell 0.28 lsf and has collected INR96.41 cr with an average monthly collection of ~INR8 cr. With 71% of the project cost being funded from the customer advances; the timely receipt of customer advances becomes quintessential in the execution of the project. * Financial support to group company: One of the group companies of ASPL namely, Fest Home Developers Private Limited (FHDPL) has a debt of INR135 cr which has been utilized in the infrastructure development of its existing land bank in Noida. Presently, ASPL is providing financial support to FHDPL for its debt servicing, thereby putting pressure on its existing cash flows of ASPL. As on Aug 31, 2018, ASPL has serviced debt obligations of ~INR21 cr (including interest and principal). FHDPL intends to pay off the debt by selling the land to other developers for the construction of projects. Considering the uncertainty and time lag associated with the sale of land parcels, the financial support to FHDPL will continue to put pressure on the cash flows of ASPL. * Industry Risk: With the on-going economic conditions, the real estate industry is currently facing issues on many fronts, including subdued demand, curtailed funding options, rising costs, restricted supply due to delays in approvals, etc. thereby resulting in stress on cash flows of developers. The industry has seen low demand in the recent past, primarily due to factors like sustained high level of inflation leading to high interest rates and adverse impact on the buying power and affordability for the consumers. Key Rating Strengths * Experienced Promoters: ASPL is part of the Lotus group being promoted by Mr. Nirmal Singh having experience of more than 20 years in the real estate industry. Apart from Arena 1, the promoters of ASPL are developing many other projects in other companies in Noida and Gurgaon region. Presently Lotus Group is developing 5 projects in Noida and Gurgaon with total saleable area of approximately 100.43 lsf. Apart from this Lotus Group has already delivered 17.70 lsf of area in other projects. * Healthy sale status: Out of the total salable area of 19.29 lsf, the company has already sold 15.82 lsf till April 30, 2018 that is 82% of the total saleable area (PY: 83%). The significant parts of the sales were done at the launch of the project during Sep'15. Further the value of the area sold is INR754.60 cr of which the company has already realized INR347.25 cr till April 30, 2018. However, due to subdued demand scenario, in the last 12 months ending Apr'18, the company has been able to sell 0.28 lsf and has collected INR96.41 cr with an average monthly collection of ~INR8 cr. Thus, with significant portion of the salable area being sold; the project salability risk has been eliminated to a large extent. ASPL incorporated in June 2010 is into real estate development. It is a part of Lotus group engaged in real estate development in Noida and Gurgaon region. The group has successfully executed a number of projects including residential buildings, malls, office complex, etc. in Delhi NCR with the total saleable area of 17.70 lsf. Ongoing projects of the group include 5 residential projects with a total saleable area of 100.43 lsf. ASPL is currently developing residential project "Arena 1" located in sector-79, Noida with a total saleable area of 19.29 lsf. BAJAJ AGRO: CRISIL Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Bajaj Agro Industries (BAI) continue to be 'CRISIL D/CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 0.5 CRISIL D (Issuer Not Cooperating) Cash Credit 5.5 CRISIL D (Issuer Not Cooperating) Term Loan 2.51 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with BAI for obtaining information through letters and emails dated July 25, 2020 and January 19, 2021 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of BAI, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on BAI is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of BAI continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. Set up in 2011, Kurud (Chhattisgarh)-based BAI, a proprietorship firm of Mr Naresh Kumar Bajaj, is engaged in the processing and domestic sale of basmati rice. Its unit, with capacity to process 4 lakh quintal of paddy per annum, is currently utilised at 75-80%. BALAJI SAHAKARI: CARE Keeps D Debt Rating in Not Cooperating ------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Shri Balaji Sahakari Soot Girni Limited (SBSSG) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 7.18 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 27, 2019, placed the rating of SBSSG under the 'issuer non-cooperating' category as SBSSG had failed to provide information for monitoring of the rating as agreed to in its Rating Agreement. SBSSG continues to be non-cooperative despite repeated requests for submission of information through email letter dated January 18, 2021, January 20, 2021, January 27, 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 November 27, 2019 the following were the rating weaknesses Key Rating Weakness * Ongoing delays in debt servicing: As per the banker interaction during last review, the account had been classified as NPA (Non-performing Asset) on account of delays in repayment of debt obligations. SBSSG was established as a co-operative society on January 21, 1991, but commenced commercial operation from May 25, 2011 onwards. SBSSG is engaged in cotton spinning through open end spinning method with an installed capacity of 6,624 spindles for manufacturing of cotton yarn with end-user industries being power loom companies situated in and around thearea of Washim, Maharashtra. BEST IT: CARE Moves D Debt Ratings to Not Cooperating Category -------------------------------------------------------------- CARE Ratings has migrated the rating on bank facilities of Best IT World (India) Private Limited (BIWIPL) to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 80.00 CARE D; ISSUER NOT COOPERATING Facilities Rating moved to ISSUER NOT COOPERATING Category Short Term Bank 117.00 CARE D; ISSUER NOT COOPERATING Facilities Rating moved to ISSUER NOT COOPERATING Category Detailed Rationale & Key Rating Drivers 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. BIWIPL has not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. The rating on BIWIPL's bank facilities will now be denoted as CARE D/CARE D; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. The ratings take into account delay in debt/default in debt servicing primarily on account of slowdown in business performance and stretched working capital cycle, resulting in deterioration of liquidity position of the company. Detailed description of the key rating drivers At the time of last rating on April 15, 2020 the following were the rating weaknesses (updated for the information available from annual report FY20, shared by the client etc.): Key Rating Weaknesses * On-going delay/default in debt servicing: As per the 'Default if Any' statement shared by the company dated February 2, 2020, there are ongoing delays in debt servicing. Further, few of the bankers on interaction has confirmed that the account has been classified as NonPerforming Asset (NPA) by the banks due to delay in repayment of loans taken from the banks. The same is on account of stretched working capital cycle resulting from high debtor days. The low business performance combined with elongated working capital cycle has led to weak liquidity position. * Update on performance in FY20: BIWIPL has reported decline in total income to the extent of 35% to INR370crore in FY20 on account of lower trading activity. Further increase in operating expenses, specially selling cost led to operating loss in FY20. Adding to the above, increase in finance cost led to net loss of INR68crore in FY20. Overall gearing of the company deteriorated from 1.84x as on March 31, 2019 to 6.48x as on March 31, 2020 due to erosion of networth on account of huge loss incurred in FY20 Promoted by Mr. Sandeep Parasrampuria in 1996, Best IT World (India) Private Limited (BWIPL) is engaged in the distribution and marketing of computer hardware and peripherals and tablets. The company started marketing its products under the brand 'iBall' from 2001 and continued its dominance in the "Plug and Play Device" segment which constitutes of desk set (keyboard and mouse), speakers, headsets, webcam, microphones, Bluetooth wireless products, MP3 players, pen drives, pen tablets, USB products and various assembled products such as CPU, monitors, laptops; and mobile handsets as well as tablets. During FY11, the company entered into the mobile handset segment and subsequently diversified into tablet segment during FY12. Later in August 2016, the company announced its exit from mobile business due to competitive challenges faced by it which resulted in losses in this segment. The company operates in mainly 5 product segments – Computer peripherals, Networking, Audio, Tablets and Security devices. It has pan India presence with 100 suppliers and 240 SKU's. BIDAR SOLAR: CARE Keeps D Debt Rating in Not Cooperating Category ----------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Bidar Solar Power Private Limited (BSPPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 76.00 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 January 20, 2020, placed the rating of BSPPL under the 'issuer non-cooperating' category as BSPPL had failed to provide information for monitoring of the rating. BSPPL continues to be non-cooperative despite requests for submission of information through email dated January 11, 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 rating factors in stretched liquidity position with continued delays in debt servicing. Detailed description of the key rating drivers: At the time of last rating on January 20, 2020, the following were the rating strengths and weaknesses (updated for the information available from Registrar of Companies): Key Rating Weaknesses * Stretched liquidity: BSPPL has entered into PPA with Gulbarga Electricity Supply Company during July 2012, for sale of power upto 10 MW for the period of 25 years from COD. However, delay in receipt of payments from Gulbarga Electricity Supply Company Limited has resulted in stressed liquidity position for the company. The same has resulted in delays in servicing of debt obligation. Bidar Solar Power Private Limited (BSPPL), is a special purpose vehicle (SPV) sponsored by GKC Projects Ltd (GKCPL) for setting up Solar PV (Photovoltaic) power plant in the Bidar district of Karnataka on Design, Build, Finance, operate and Transfer (DBFOT) basis. The installed capacity of the plant is 10 MW. The project has achieved commercial operational date (COD) on August 28, 2014. CHANDRA AUTOMOBILE: CRISIL Reaffirms B- Rating on INR7.15cr Loan ---------------------------------------------------------------- CRISIL Ratings has reaffirmed its rating on the bank facility of Chandra Automobile India Private Limited (CAIPL) at 'CRISIL B-/Stable'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7.15 CRISIL B-/Stable (Reaffirmed) The rating continues to reflect CAIPL's weak financial risk profile and its exposure to intense competition in automobile dealership industry. These weakness are partially offset by its promoter's extensive experiences in the industry. Key Rating Drivers & Detailed Description Weaknesses: * Weak financial risk profile: The company's financial risk profile is marked by modest net worth and high gearing and total outside liabilities to tangible net worth (TOLTNW) ratio. The company had modest net worth of about INR 4.48 crore as on March 31, 2019. Its net worth is likely to remain modest over the medium term on account of low accretions to reserves because of low profitability on account of the trading nature of its operations. * Exposure to intense competition in automobile dealership industry: The passenger cars automotive sector is intensely competitive with a large number of players present in the mini, compact, mid-size, executive, premium and luxury passenger car segments. Also two wheeler automotive sector is intensely competitive with a large number of players present in the 100cc, 150cc and premium categories. Strength: * Promoters' extensive experience: The promoters have extensive experience in operating various auto dealerships. The promoters have initially set CAIPL in 1992 as a dealer of two wheelers for Hero Honda Motors Pvt Ltd. Later in 2005 they have taken up the dealership of HMSI. After the split of Hero and Honda, the company has taken the dealership of HMIL. Liquidity: Stretched Average bank limit utilization for the last 12 months ended on December 2020 is modest at around 90%. Net cash accruals along with cash balance and support from unsecured loans, meets repayment obligations. Current ratio continues to remain modest at 0.88 times in March, 2020. Outlook: Stable CRISIL believes that CAIPL will continue to benefit over the medium term from its promoters' extensive industry experience. Rating Sensitivity factors Upward Factors: * Strong revenue growth rate while maintaining operating margin of more than 3% * Efficient working capital management and maintenance of moderate capital structure. Downward Factors: * Decline in revenue growth rate or further fall in operating margin at less than 1.5% * Larger than expected working capital requirement or significant debt funded capex Set up in 1992, CAIPL is an authorised dealer for passenger cars of Hyundai Motor India Ltd and two-wheelers of Honda Motorcycle & Scooter India Pvt Ltd in Coimbatore (Tamil Nadu). The company is promoted by Mrs. R Nandini and her family members. CORUSCATION VIDYUT: CARE Keeps D Debt Rating in Not Cooperating --------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Coruscation Vidyut Vitaran (Ujjain) Private Limited (CVVUPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 62.50 CARE D; ISSUER NOT COOPERATING Facilities ISSUER NOT COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category CARE had, vide its press release dated July 9, 2019, placed the rating of CVVUPL under the 'Issuer Non-Cooperating' category as CVVUPL had failed to provide information for monitoring of the rating. CVVUPL continues to be non –cooperative despite repeated requests for submission of information through e-mails, phone calls and email dated January 21, 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 Key Rating Weaknesses CARE is unable to arrive at a fair rating on account of non-cooperation by CVVUPL in providing adequate information required to derive view on company's operational performance and debt servicing ability. However, as per the banker feedback, account has been classified as non-performing asset. Coruscation Vidyut Vitaran (Ujjain) Private Limited (CVVUPL), incorporated on April 24, 2012, as a special purpose vehicle (SPV) promoted by Essel group for functioning as the distribution franchisee (DF) for the Ujjain area. The SPV is held by Essel group Investment Company i.e. Pan India Network Limited (PINL) holding 74% and balance is held by Pan India Infraprojects Private Limited (PIIPL). CVVUPL was responsible for the purchase and distribution of power to the existing and future consumers in the prescribed area, maintenance of the distribution assets and all related activities subject to the terms and conditions as stipulated in the distribution franchise agreement (DFA) and various regulatory authorities. The Government of Madhya Pradesh vide order dated July 1, 2002 has incorporated Madhya Pradesh Paschim Kshetra Vidyut Vitran Company Limited (MPKVCL), Indore, as a wholly owned Government of Madhya Pradesh undertaking under the Companies Act, 1956 and a licensee under Electricity Act 2003 to undertake activities of distribution and retail supply for and on behalf of Madhya Pradesh State Electricity Board in Ujjain City. MPKVCL in an endeavour to improve operational efficiencies and quality of services provided to its consumers, wanted to bring in management expertise through public-private partnerships in the distribution of electricity without divestment of owned assets. On May 10, 2012, MPKVCL and CVVUPL entered into distribution franchisee agreement (DFA) for the sale of power in Ujjain area and for further retail distribution to consumers on behalf of the distribution licensee (MPKVCL). The distribution franchisee (DF) i.e. CVVUPL shall have right to use the existing distribution network within the designated distribution franchise area. The project was handed over to CVVUPL as on August 1, 2014; a delay of more than two years by MPKVCL due to political reasons. MPKVCL sent a termination notice dated October 1, 2015 to CVVUPL and terminated the project w.e.f. October 15, 2015 and took over the operations since October 16, 2015. Currently, the matter is sub-judice and there are no operations in the company. In March 2017, the company refinanced existing bank facilities in the company and the outstanding term debt [Working Capital Demand Loan (WCDL)] is INR62.05 crore as on January 31, 2018. The repayments are supported through infusion by promoters. DEEN DAYAL: CRISIL Reaffirms D Rating on INR9.5cr Loans ------------------------------------------------------- CRISIL Ratings has reaffirmed its 'CRISIL D' rating on the long-term bank facilities of Pt. Deen Dayal Upadhyay Sikshan Trust (DDUST). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 7.5 CRISIL D (Reaffirmed) Overdraft Facility 2 CRISIL D (Reaffirmed) The rating continues to reflect delay by the trust in meeting interest obligation on its term loan, because of cash flow mismatch. The trust is susceptible to geographical concentration in revenue and intense competition. However, it benefits from its established position in the education services sector. Key Rating Drivers & Detailed Description * Delay in servicing debt because of poor liquidity: Poor liquidity has led to cash flow mismatch causing a delay in meeting interest obligation on the term loan. Other rating drivers: Weaknesses: * Geographical concentration in revenue, and vulnerability to intense competition: As the entire revenue comes from colleges in Jhansi, Uttar Pradesh, there is high geographical concentration risk. These colleges face competition from several reputed universities and colleges in Uttarakhand, Himachal Pradesh, and the National Capital Region with students coming from across India. Strength: * Established position in the regional market: The trust has an established track record of over a decade in operating colleges in Jhansi. Over the years, it has built a reputation as a provider of quality education, with sound infrastructure facilities, research-based education, and well-trained and highly qualified faculty. Liquidity: Poor The liquidity remains poor as indicated by delay in interest servicing of term loans over the past few months ended December 2020. Rating Sensitivity factors Upward factors: * Timely debt servicing for more than 90 days * Sustainable increase in revenue, driven by higher intake of students DDUST was formed as a non-charitable trust at Jhansi in 2007. The trust operates five colleges in a single campus, offering undergraduate and postgraduate courses in different streams. The courses offering technical education are affiliated to UP Technical University, while other courses are affiliated to Bundelkhand University. The trust is managed by Mr Surendra Kumar Rai, who has around two decades of experience in the education sector. FEST HOMES: CARE Lowers Rating on INR127cr LT Loan to D ------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Fest Homes Developers Private Limited (FHDPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 127.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category and Revised from CARE B+ (CE); Stable Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated December 27, 2019; placed the rating of FHDPL under the 'issuer non-cooperating' category as FHDPL had failed to provide information for monitoring of the rating. FHDPL continues to be non-cooperative despite repeated requests for submission of information through e-mails dated January 25, 2021; January 14, 2021 and January 08, 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 rating assigned to the bank facilities of FHDPL takes into account the ongoing delays in servicing of debt obligations by FHDPL as well as the co-borrower i.e Arena Superstructure Private Limited (ASPL). The rating takes into cognizance the initiation of Corporate Insolvency Resolution Process (CIRP) against ASPL in NCLT upon default of loan availed from a financial creditor. Detailed description of the key rating drivers At the time of last rating on December 27, 2019 the following were the rating strengths and weaknesses (updated for the information available from Registrar of Companies, NCLT): Key Rating Weaknesses * Delay in servicing of debt obligation: There are ongoing delays in servicing of debt obligation by ASPL and FHDPL related to their respective debt obligation. Also one of the financial creditors has initiated CIRP proceedings against the co-borrower i.e ASPL which has been admitted in NCLT for further hearing. * Residual Project Execution Risk coupled with high dependence on customer advances: ASPL is developing a residential group housing project by the name of "Arena 1" with a total salable are of 19.29 lsf. The land and necessary approvals for the said project have already been obtained. As on April 30, 2018, out of the total project cost of INR545.49 cr, the company has incurred INR299.95 crore i.e. 58% of total project cost. Further, the company has incurred 61% if the total construction cost till the same period. With considerable project cost yet to be incurred; the project is exposed to project execution risk. Further, the total project cost is proposed to be funded through INR57.50 crore of promoter's fund, 100 crore of debt and the balance from the customer advances. As on April 30, 2018, the promoters have infused INR55.96 cr and have availed a debt of INR87 cr with balance funds from the customers. Due to subdued demand scenario, in the last 12 months ending Apr'18, the company has been able to sell 0.28 lsf and has collected INR96.41 cr with an average monthly collection of ~INR8 cr. With 71% of the project cost being funded from the customer advances; the timely receipt of customer advances becomes quintessential in the execution of the project. * Financial support to group company: One of the group companies of ASPL namely, Fest Home Developers Private Limited (FHDPL) has a debt of INR135 cr which has been utilized in the infrastructure development of its existing land bank in Noida. Presently, ASPL is providing financial support to FHDPL for its debt servicing, thereby putting pressure on its existing cash flows of ASPL. As on Aug 31, 2018, ASPL has serviced debt obligations of ~INR21 cr (including interest and principal). FHDPL intends to pay off the debt by selling the land to other developers for the construction of projects. Considering the uncertainty and time lag associated with the sale of land parcels, the financial support to FHDPL will continue to put pressure on the cash flows of ASPL. * Industry Risk: With the on-going economic conditions, the real estate industry is currently facing issues on many fronts, including subdued demand, curtailed funding options, rising costs, restricted supply due to delays in approvals, etc. thereby resulting in stress on cash flows of developers. The industry has seen low demand in the recent past, primarily due to factors like sustained high level of inflation leading to high interest rates and adverse impact on the buying power and affordability for the consumers. Key Rating Strengths * Experienced Promoters: ASPL is part of the Lotus group being promoted by Mr. Nirmal Singh having experience of more than 20 years in the real estate industry. Apart from Arena 1, the promoters of ASPL are developing many other projects in other companies in Noida and Gurgaon region. Presently Lotus Group is developing 5 projects in Noida and Gurgaon with total saleable area of approximately 100.43 lsf. Apart from this Lotus Group has already delivered 17.70 lsf of area in other projects. * Healthy sale status: Out of the total salable area of 19.29 lsf, the company has already sold 15.82 lsf till April 30, 2018 that is 82% of the total saleable area (PY: 83%). The significant parts of the sales were done at the launch of the project during Sep'15. Further the value of the area sold is INR754.60 cr of which the company has already realized INR347.25 cr till Apr 30, 2018. However, due to subdued demand scenario, in the last 12 months ending Apr'18, the company has been able to sell 0.28 lsf and has collected INR96.41 cr with an average monthly collection of ~INR8 cr. Thus, with significant portion of the salable area being sold; the project salability risk has been eliminated to a large extent. Fest Homes Developers Private Limited was incorporated in April, 2016 and the company is into real estate development. It is a part of the Lotus Group. About ASPL Arena Superstructures Pvt. Ltd. (ASPL) incorporated in June 2010 is into real estate development. It is a part of Lotus group engaged in real estate development in Noida and Gurgaon region. The group has successfully executed a number of projects including residential buildings, malls, office complex, etc. in Delhi NCR with the total saleable area of 17.70 lsf. Ongoing projects of the group include 5 residential projects with a total saleable area of 100.43 lsf. ASPL is currently developing residential project "Arena 1" located in sector-79, Noida with a total saleable area of 19.29 lsf. HOTEL RAJ: CARE Lowers Rating on INR15cr LT Loan to B- ------------------------------------------------------ CARE Ratings revised the ratings on certain bank facilities of Hotel Raj Mahal (HRM), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 15.00 CARE B-; Stable; ISSUER NOT Facilities COOPERATING Rating continues to remain under ISSUER NOT COOPERATING category and Revised from CARE B; Stable Detailed Rationale & Key Rating Drivers CARE has been seeking information from HRM to monitor the rating vide letters/e-mails communications dated January 12, 2021, January 14, 2021, January 15, 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 ratings on the basis of the publicly available information which however, in CARE's opinion is not sufficient to arrive at fair rating. The rating of Hotel Raj Mahal's (HRM) bank facilities will now be denoted as 'CARE B-; Stable; ISSUER NOT COOPERATING'. Further, banker could not be contacted. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. The rating assigned to the bank facilities of Hotel Raj Mahal (HRM) is constrained by its constitution as a proprietorship entity, project implementation risk, competition from other players in the industry, and seasonality associated with hotel industry. The aforesaid constraints are partially offset by its experienced management, strategic locational advantage of the hotel and high growth prospects of the industry. The ability of the firm to complete the project without any cost & time overrun, ability to achieve the projected scale of operations and profitability as envisaged and ability to manage its working capital effectively would be the key rating sensitivities. Detailed description of the key rating drivers At the time of last rating in December 10, 2019 the following were the rating strengths and weaknesses: Key Rating Weaknesses * Constitution as a proprietorship entity: Hotel Raj Mahal, being a proprietorship entity, is exposed to inherent risk of the proprietor capital being withdrawn at time of personal contingency and entity being dissolved upon the death/insolvency of the proprietor. Furthermore, proprietorship entities have restricted access to external borrowing as credit worthiness of proprietor would be the key factors affecting credit decision for the lenders. * Project implementation risk: Mr. Debi Prasad Mondal is setting up a luxury hotel cum restaurant under the name "Hotel Raj Mahal" in Birbhum, West Bengal. The hotel has proposed to provide services like multi-cuisine restaurant and swimming pool and banquet cum conference room among others. The hotel is expected to comprise of 109 rooms consisting of 93 double room (deluxe), 8 four bedded room and 6 suits. The total cost of the project is INR25.23 crore and the same is funded by promoters contribution of INR10.23 crore and term loan of INR15.00 crore. The hotel is expected to start in two phases with Phase-I being expected to start from April 2019 and Phase-II being expected to start from January 2020. The Phase-I is expected to be completed by March 2019 and the commercial operations expected to start from April 2019. The firm has already invested INR5.00 crore towards land & site development, building, civil works etc. till December 15, 2018 which is met through proprietor's contribution. The financial closure of the aforesaid term loan from the bank is yet to be achieved. The ability of the firm to complete the project without any cost or time over run will remain critical from the credit risk perspective of the entity. * Highly fragmented and competition from other players in the industry: The entity faces competition from a number of small and medium players since it is located in a tourist destination. Though there are other regional players offering services, the entity is able to withstand in the market through its satisfactory experience with continuous business promotion activities. Further, the hotel industry is region-based and is highly sensitive to the untoward events such as slowdown in the economy. * Seasonality associated with hotel industry: The demand for hotel and hospitality sector has direct relation to the overall health of economy. The hotel industry in the normally experiences high demand during March to June month, mainly on account of summer vacations and from October to November mainly on account of festive vacations all over India. However, this trend is seeing a change over the recent few years. Hotels have introduced various offerings to improve performance (occupancy) during the lean months. These include targeting the conferencing segment and offering lucrative packages during the lean period. Key Rating Strengths * Experienced management: Mr. Debi Prasad Mondal (aged 44 years) has almost two decades of experience in similar line of business. Apart from that, he owns a fooding and lodging facility in the name of "Hotel Mahaprabhu" Tarapith, Birbhum, West Bengal for more than last one decade. He is proposed to look after the overall management of the firm, with adequate support from a team of experienced personnel. * Locational advantage of the hotel: The proprietor is setting up a hotel in Birbhum district of West Bengal. The proposed hotel is proposed to be set up at a prime location in Tarapith. The place is with connected through Railway with nearest railway station being Rampurhat (9.7 Kms) which is well linked through Howrah and Sealdah railway stations. These stations are connected to most of the other major cities in the country as well. From Rampurhat one can avail a cab or a taxi to reach Tarapith. The place is also well connected by bus route from Kolkata. Moreover, Tarapith being a prime religious destination for Hindus at Tarapith it attracts huge number of pilgrims on a regular basis. * High growth prospects of the industry: The Indian tourism and hospitality industry has emerged as one of the key drivers of growth among the services sector in India. The Government of India is working to achieve 1 per cent share in world's international tourist arrivals by 2020 and 2 per cent share by 2025. Tarapith is a small temple town near Rampurhat in Birbhum district of West Bengal, which known for its Goddess Kali temple. Being a prime religious destination for Hindus at Tarapith it attracts huge number of pilgrims on a regular basis. Mr. Debi Prasad Mondal is setting up a luxury hotel cum restaurant under the name "Hotel Raj Mahal" in Birbhum, West Bengal. The hotel has proposed to provide services like multi-cusine restaurant and swimming pool and banquet cum conference room among others. The hotel is expected to comprise of 109 rooms consisting of 93 double room (deluxe), 8 four bedded room and 6 suits. The total cost of the project is INR25.23 crore and the same is funded by promoters contribution of INR10.23 crore and term loan of INR15.00 crore. The hotel is expected to start in two phases. The Phase-I is expected to be completed by March 2019 and the commercial operations expected to start from April 2019. The phase-II and Phase-II is expected to start from January 2020. The financial closure of the aforesaid term loan from the bank is yet to be achieved. Mr. Debi Prasad Mondal (aged 44 years) having almost two decades of experience in hotel and restaurant business. He is proposed to look after the overall management of the firm, with adequate support from a team of experienced personnel. J G AGRO: CRISIL Keeps D Debt Rating in Not Cooperating Category ---------------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of J G Agro Industries (JGAI) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 9 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with JGAI for obtaining information through letters and emails dated July 25, 2020 and January 30, 2021 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of JGAI, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on JGAI is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of JGAI continues to be 'CRISIL D Issuer Not Cooperating'. JGAI was established in 2008 as a partnership firm by the Jindal family in Patiala (Punjab). The firm was reconstituted as a proprietorship concern with Mr. Tejinder Mohan Jindal as proprietor in 2012-13. JGAI is mainly engaged in shelling of basmati and non-basmati rice. J J HI TECH: CARE Keeps D Debt Rating in Not Cooperating Category ----------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of J J Hi tech Foods Private Limited (JFPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 27.37 CARE D; ISSUER NOT COOPERATING Facilities ISSUER NOT COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated February 14, 2020 placed the rating(s) of JFPL under the 'issuer non-cooperating' category as J J Hi tech Foods Private Limited had failed to provide information for monitoring of the rating. J J Hi tech Foods Private Limited continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and email dated January 27, 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 February 14, 2020 the following were the rating strengths and weaknesses. Key Rating Weaknesses * On-going delays: The company has been facing liquidity issues due to which there are irregularities and delays in repayment of debt obligation. J J Hi Tech Foods Private Limited (JFPL) was promoted by Mr. Ravi and Ms. Parvathi in November, 2011 for processing of paddy with the installed capacity of 120 MT per day in Manachallur, Trichy. The commercial operations of the company commenced from February 1, 2014. Paddy is the main raw material which is procured from the farmers based in Tamil Nadu(mainly in and around Trichy), and through traders in Andhra Pradesh and Karnataka. JABALPUR MSW: CARE Keeps D Debt Rating in Not Cooperating Category ------------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Jabalpur MSW Private Limited (JMPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 117.36 CARE D; ISSUER NOT COOPERATING Facilities ISSUER NOT COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category CARE had, vide its press release dated July 9, 2019, placed the rating of JMPL under the 'Issuer Non-Cooperating' category as JMPL had failed to provide information for monitoring of the rating. JMPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and email dated January 21, 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 Key Rating Weaknesses CARE is unable to arrive at a fair rating on account of non-cooperation by JMPL in providing adequate information required to derive view on company's operational performance and debt servicing ability. However, as per the bankers feedback, the company has been classified as non-performing asset. Jabalpur MSW Private Limited (JMPL) is a special purpose vehicle (SPV) promoted by Essel Infraprojects Limited (EIL) and Arrow Ecology & Engineering Overseas (1999) Ltd. JMPL was incorporated on January 23, 2013 for development of a processing plant for conversion of municipal solid waste (MSW) into energy. The company is a direct subsidiary of EIL which holds 90% stake in the company. JMPL has set up a waste-to-energy plant of 580 TPD capacity, using incineration-based technology of Hitachi Zosen Group at village Kathonda, Jabalpur on Design, Build, Own, Operate and Transfer (DBOOT) basis. Pursuant to competitive bidding conducted by Jabalpur Municipal Corporation (JMC), the MSW project was awarded to consortium of EIL and Arrow Ecology & Engineering Overseas (1999) Ltd on Nov. 30, 2012. The concession agreement was executed between JMC and JMPL on Feb. 5, 2013. As per the Concession Agreement, JMC shall provide 450 TPD of MSW, progressively increasing to 580 TPD of MSW for a period of 20 years, in accordance with the Concession Agreement. Further, as per the terms of the Concession Agreement, JMC shall supply the unsegregated municipal solid waste free-of-cost to the Company at the plant site for a period of 20 years from the commercial operation date. The construction of the plant was completed on May 11, 2016 as against scheduled COD which was fixed at 24 months from the appointed Date i.e. Feb. 20, 2016. The total project cost is INR177 crore and funded in debt to equity ratio of 2.05:1. The debt repayment is for a tenor of 10.5 years, starting in May 31, 2017 and ending in Aug. 31, 2027, which gives the project a tail period of 9.5 years. On September 18, 2014, The JMPL has signed a Power Purchase Agreement (PPA) with M.P Power Management Co. Ltd (MPPMCL) at a fixed tariff of INR6.39 per KWh for a period of 20 years. JAGDAMBA POULTRY: CARE Keeps D Debt Rating in Not Cooperating ------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Shree Jagdamba Poultry Private Limited (SJPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 11.50 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 November 26, 2019, placed the ratings of SJPL under the 'issuer non-cooperating' category as SJPL had failed to provide information for monitoring of the rating as agreed to in its Rating Agreement. SJPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and emails dated January 18, 2021, January 21, 2021, 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. Detailed description of the key rating drivers At the time of last rating on November 26, 2019 the following were the rating weaknesses (Updated for the information available from Registrar of Companies): Key Rating Weaknesses * Delays in debt servicing: As per the banker interaction dated January 27, 2021 the account continues to remain under NPA category owing to continuous overdrawals in cash credit facility. Nagpur, Maharashtra based, SJPL was incorporated in 2001 as a private limited company by Mr. Rakesh Singh and Ms. Nutan Rakesh Singh, and is engaged in poultry farming business and trading of agro products like paddy, maize, wheat, rice, soyabean, animal and poultry feed amongst others. JAIPRAKASH ASSOCIATES: CARE Reaffirms D INR20,867.57cr Loan Rating ------------------------------------------------------------------ CARE Ratings reaffirmed ratings on certain bank facilities of Jaiprakash Associates Ltd (JAL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank Facilities 20,867.57 CARE D Reaffirmed Long Term/Short Term Bank Facilities 4,619.21 CARE D Reaffirmed Short Term Bank Facilities 1,475.00 CARE D Reaffirmed Non-Convertible Debentures 90.00 CARE D Reaffirmed Non-Convertible Debentures 100.00 CARE D Reaffirmed Non-Convertible Debentures 500.00 CARE D Reaffirmed Non-Convertible Debentures 500.00 CARE D Reaffirmed Non-Convertible Debentures 248.23 CARE D Reaffirmed Detailed Rationale & Key Rating Drivers The ratings of the bank facilities and instruments of JAL continue to factor in delays in debt servicing by the company due to its weak liquidity. Rating Sensitivities: Positive Factors: * Timely track record of debt servicing by the company for continuous 3 months * Sustainable improvement in the financial and business performance of the company Detailed description of the key rating drivers * Weak financial performance in FY20: During FY20 (standalone), the company reported loss of INR892.83 crore on total operating income of INR4670.45 crore as against loss of INR773.68 crore on total operating income of INR6976.41 crore during FY19. On account of deterioration in the company's financial performance over the past few years, the liquidity position of the company has continued to remain weak, leading to ongoing delays in debt servicing. * Approved restructuring exercise of debt: The lenders have approved a deep restructuring of the company's debt in Joint lender's forum dated 22.06.17 with the cut-off date being 30.09.16 for the outstanding amount of debt in JAL (including JCCL) as on September 30, 2016 of INR31,646 Cr (JAL INR29,037 Cr. and JCCL INR2,609 Cr respectively). With an objective to make debt sustainable, the total debt has been classified into 2 buckets- Bucket 1, consisting of debt already transferred to UTCL (Ultra Tech Cement Ltd) of INR11,689 crore, while bucket 2A, consisting of the amount of residual debt to be retained in JAL (INR6,367 crore) and bucket 2B, to be transferred to a new SPV (a specified Real Estate undertaking of JAL) of INR13,590 crore. Debt in bucket 2A is being retained in JAL and would be serviced as per the restructured terms. For the debt in bucket 2B, proposed to be transferred to Jaypee Infrastructure Development Limited (JIDL) upon approval of Scheme of arrangement by Hon'ble NCLT, Allahabad, Optionally convertible debentures (OCDs) shall be issued by JIDL for a tenor of 20 years, with redemption in 5 years commencing from the 16th year. The restructuring exercise is yet to be fully concluded. Master Restructuring Agreement (MRA) dated Oct 31, 2017 has been executed by lenders for sustainable portion of debt and since Q4 FY18; JAL has started servicing of debt under Bucket 2A as per the above restructuring plan. For Bucket 2B, NCLT approval is still awaited. Since the restructuring exercise has not been fully executed, the rated debt amounts are considered prior to giving the effect of restructuring. Jaiprakash Associates Ltd (JAL) is the flagship company of the Jaypee group and is engaged in engineering and construction, cement, real estate and hospitality businesses. JAL was one of the leading cement manufacturers with an installed capacity of ~28 million tonnes per annum (mtpa) and under implementation capacity of ~5 mtpa on a consolidated basis as on March 31, 2018. JAL is also engaged in the construction business in the field of civil engineering, design and construction of hydro-power, river valley projects. JAL is also undertaking power generation, power transmission, real estate, road BOT, healthcare and fertilizer businesses through its various subsidiaries/SPVs. JAYPEE CEMENT: CARE Reaffirms D Rating on INR2,362.94cr Loans ------------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of Jaypee Cement Corporation Limited (JCCL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank Facilities 2,312.94 CARE D Reaffirmed Short Term Bank Facilities 50.00 CARE D Reaffirmed Detailed Rationale & Key Rating Drivers The ratings of the bank facilities and instruments of JCCL continue to factor in delays in debt servicing by the company due to liquidity constraints. Rating Sensitivities: Positive Factors: * Timely track record of debt servicing by the company for continuous 3 months * Sustainable improvement in the operations of the company Detailed description of the key rating drivers * Weak financial profile in FY20: During FY20, the company's net loss stood at INR740.11 crore on the total operating income of INR166.59 crore as against net loss of INR143.73 crore on total operating income of INR178.59 crore. Decline in operating income, decline in PBILDT margin and high interest cost have been the key reasons for weak financial performance. Due to weak financial risk profile of the group coupled with JCCL's weak operating performance, the liquidity position continued to remain constrained, leading to delays in debt servicing by the company. Liquidity: Poor The liquidity of the company is poor, owing to delays in debt servicing. The company had cash and bank balance of INR5.01 crore as on March 31, 2020. JCCL, a wholly-owned subsidiary of Jaiprakash Associates Ltd (JAL, rated CARE D), is engaged in cement manufacturing. It has a 1.20 MTPA cement grinding unit at Shahabad District Gulbarga, Karnataka along with a 60 MW captive power plant. Another 1.20 MTPA cement capacity at Jaypee Shahabad Cement Project has been kept suspended temporarily. JB PATEL: CRISIL Reaffirms B+ Rating on INR1.0cr Cash Loan ---------------------------------------------------------- CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable/CRISIL A4' ratings on the bank facilities of J. B. Patel and Co (JBPC). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 0.7 CRISIL A4 (Reaffirmed) Cash Credit 1.0 CRISIL B+/Stable (Reaffirmed) The ratings continue to reflect the small scale of JBPC's operations, large working capital requirement and susceptibility to tender-based operations. These weaknesses are partially offset by the extensive experience of the proprietor in the civil construction industry and the firm's above-average debt protection metrics. Analytical Approach Unsecured loan provided by the proprietor as on March 31, 2020, has been treated as neither debt nor equity, as the loan is interest-free and is likely to be retained in the business over the medium term. Key Rating Drivers & Detailed Description Strengths: * Extensive experience of the proprietor: The decade-long experience of the proprietor, his strong understanding of the local market dynamics and healthy relationships with suppliers and customers should continue to support the business. * Above-average debt protection metrics: Debt protection metrics were above average, indicated by interest coverage ratio of 3.7 times in fiscal 2020. The metrics are expected to remain stable over the medium term. Weakness: * Small scale of operations: Scale of operations is small, as reflected in revenue of INR3.4 crore as on March 31, 2020. The firm's operations are largely confined to Gujarat. Revenue is expected to remain modest over the medium term because of the small order book. * Large working capital requirement: Operations are working capital-intensive, as reflected in estimated gross current assets (GCAs) of 242 days as on March 31, 2020, driven by large security deposits, retention money and inventory. The working capital cycle is likely to remain stretched over the medium term. * Susceptibility to tender-based operations: Business depends on the firm's ability to successfully win orders. Intense competition necessitates the need for aggressive bidding. Also, given the cyclicality inherent in the construction industry, maintaining profitability through operating efficiency becomes critical. Liquidity: Stretched Cash accrual is expected at a modest INR20-25 lakh per annum over the medium term. Bank limit utilisation averaged 93% over the 12 months through December 2020. However, liquidity will remain partially supported by timely, need-based funds from the proprietor. Outlook Stable JBPC will continue to benefit from the proprietor's extensive experience and healthy relationships with clients. Rating Sensitivity factors Upward factor * Moderation in bank limit utilisation * Cash accrual of above INR40 lakh Downward factors * Sizeable stretch in the working capital cycle, with GCAs of more than 450 days * Steep decline in profitability and cash accrual JBPC was set up in 2009 by the proprietor, Mr JB Patel. The Gujarat-based firm undertakes civil construction works. JBR IMPEX: CRISIL Keeps D Debt Rating in Not Cooperating Category ----------------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of JBR Impex India Private Limited (JBR) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 20 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with JBR for obtaining information through letters and emails dated July 25, 2020 and January 19, 2021 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of JBR, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on JBR is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of JBR continues to be 'CRISIL D Issuer Not Cooperating'. JBR, incorporated in April 2017, is based in Delhi and promoted and managed by Mr Nitin Gaur. The company has set up a dal processing unit in Mayapuri, Delhi, with a capacity of 14,400 tonne per annum. Currently, it trades in dal. KISHANGARH BEAWAR: CARE Reaffirms D Rating on INR1,080.23cr Loan ---------------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of Kishangarh Beawar NH- 8 Tollway Private Limited (KBTPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank Facilities 1,080.23 CARE D Reaffirmed Detailed Rationale & Key Rating Drivers The ratings of KBTPL take into account lower toll collections in comparison to operational expenses and debt servicing obligations of the company. The company has approached its lenders for a Onetime restructuring (OTR) scheme as per RBIs policy 'Resolution Framework for COVID-19 related stress' announced on August 6, 2020, stating that the impact of Covid-19 is expected to be seen in toll collections for the next 2-3 years as the economy is affected in general. While the lenders have invoked the OTR proposal submitted by the company, its implementation is expected by June 2021 subject to final approval of lenders based on the techno economic viability study and other compliances as per RBI guidelines. While, the company has regularized the account with no reported delays from March 12, 2020 onwards on the backdrop of moratorium permitted from March'20 to August'20 as per RBIs Covid-19 regulatory package, which resulted in build-up of liquidity during the said period, the ratings continue to be constrained due to high probability of delay/default in debt servicing owing to lower toll collections in relation to the quantum of debt servicing. Going forward, the company's continued ability to service its debt obligations in a timely manner with improvement in vehicular traffic and average daily toll collection shall be the key rating sensitivities. Rating Sensitivities Positive Rating Sensitivities * Increase in toll collections such that the DSCR improves to >1x Detailed description of the key rating drivers Key Rating Weaknesses * Lower toll revenues in comparison to operational expenses and debt servicing obligations on a sustained basis leading to high probability of default/delay in debt servicing: Due to lower than expected toll collections against relatively high debt obligations, the company's cash flows have remain stretched from the date of commencement of commercial operation. The same has further got impacted due to Covid-19 pandemic, wherein the company has now approached its lenders for a Onetime restructuring (OTR) scheme as per RBIs policy 'Resolution Framework for COVID19 related stress' announced on August 6, 2020. The lenders have invoked the OTR proposal submitted by the company and its implementation is expected by June 2021 subject to the final approval of lenders based on the techno economic viability (TEV) study and other compliances as per RBI guidelines. While, the account of the company has been regular with no reported instances of any delays from March 12, 2020 onwards due to moratorium permitted from March'20 to August'20 as per RBIs Covid-19 regulatory package, which also resulted in build-up of short term liquidity during the aforesaid period, the ratings continue to factor in the high probability of default in debt servicing as evident from DSCR of less than 1x in coming months, without the implementation of the resolution plan, which is under consideration of the lenders. * Exposure to O&M risk, traffic fluctuations: The O&M with respect to the routine maintenance and the periodic maintenance shall be carried out by the JV of Roadis Consessions S.A., Indus Concessions India Pvt. Ltd., Soma Enterprise Limited and Soma Tollways Pvt. Ltd. Since the project highway comprises commercial vehicles (both light and heavy commercial vehicles) in majority, the O&M assumes utmost importance. In absence of any provisions for appropriation of funds towards the major maintenance, the operational cash flows of that particular year may remain stressed. The company thus remains exposed to increase in operations and maintenance expenses. Further any deterioration in vehicular growth may adversely impact company's revenue and profitability which may further constrain company's liquidity. Liquidity: Stretched The company had INR34.01 crore in cash and cash equivalents available as on December 31, 2020. The company reported a GCA of INR51.20 crore in FY20 (including non-cash expenses towards MMRA to the tune of INR6.31 crore) against debt obligations of INR50 crore (adjusted to moratorium) in FY21. The company has debt obligations of INR120 crore (after changes post moratorium) in FY22. Liquidity as such appears to be stretched. The company had opted for moratorium from March'20 to August'20 as per RBIs Covid-19 regulatory package. Kishangarh Beawar NH- 8 Tollway Private Limited (KBTPL) (erstwhile Soma Isolux Kishangarh-Beawar Tollway Private Limited) is a Special Purpose Vehicle (SPV) joint venture promoted by Roadis Corsan Concessions SA (owned by Canadian Pension Fund Managers - PSPIB), Indus Concessions India Pvt. Ltd., Soma Enterprise Limited (SEL) and Soma Tollways Pvt. Ltd. (STL). The SPV was formed to undertake the development and operation of a road project awarded by National Highway Authority of India (NHAI – The Authority). Roadis is involved in development, operation and management of infrastructure concessions and the Group also has a strong international presence which, currently, extends to over 30 countries in five continents, in addition to its strong presence in Spain. STL is a closely held public company supported by team of civil engineers and project managers for executing large infrastructure projects. The company has rich experience in execution and maintenance of road projects. MAA SUBHALA: CARE Reaffirms B+ Rating on INR8.80cr LT Loan ---------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of Maa Subhala Cold Storage Private Limited (MSCSPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank Facilities 8.80 CARE B+; Stable Reaffirmed Detailed Rationale & Key Rating Drivers The rating assigned to the bank facilities of MSCSPL is constrained by its small scale of operations with moderate profitability margins, regulated nature of business, seasonality of business and susceptibility to vagaries of nature, risk of delinquency in loans extended to farmers and competition from local players and leveraged capital structure with moderate debt coverage indicators. However, the aforesaid constraints are partially offset by its experienced management, long track record of operations of the company and proximity to potato growing areas. Key Rating Sensitivities Positives * Sizeable increase in scale of operations from present level (Total Operating Income above INR15.00 crore) and improvement in cash profit level (Gross Cash Accruals of INR1.50 crore) of the entity on a sustained basis. Negatives * Any sizeable de-growth in scale of operations from present level (total operating income below INR3.00 crore on a sustained basis. * Deterioration in capital structure with overall gearing ratio reaching higher than the level of 2.00x on a sustained basis. Detailed Rationale & Key Rating Drivers Key Rating Weakness * Small scale of operations with moderate profitability margins MSCSPL IS relatively small player in the cold storage business a low PAT of INR0.12 crore (FY19: INR0.17 crore) on total operating income of INR3.81 crore (FY19: INR4.33 crore) in FY20. The TOI declined by around 12% in FY20 over FY19 mainly on account of low portion of income from trading of potato during the said period. The total capital employed was also low at around INR7.30 crore as on March 31, 2020.The small size restricts the financial flexibility of the company in times of stress and deprives it from economies of scale. The profitability margins remained moderate marked by PBILDT and PAT margins of 20.00 % (FY19: 22.16%) and 3.18% (FY19: 4.03%), respectively, in FY20. Further the company has achieved revenue of INR3.15 crore during 9MFY21. The company expects to achieve INR4.00 crore of turnovers during FY21. Moreover, the company has not availed moratorium of repayment of interest on working capital facilities for the months of March, 2020 to August 2020 which could be availed under the terms of recent RBI circular. * Regulated nature of business: In West Bengal, the basic rental rate for cold storage operations is regulated by the state government through West Bengal State Marketing Board. The rent of these cold storages is decided by taking into account political considerations, not economic viability. Due to severe government intervention, the cold storage facility providers cannot enhance rental charge commensurate with increased power tariff and labour charge. Seasonality of business with susceptibility to vagaries of nature MSCSPL's operation is seasonal in nature as potato is a winter season crop with its harvesting period commencing in March. The loading of potatoes in cold storages begins by the end of February and lasts till March. Additionally, with potatoes having a preservable life of around eight months in the cold storage, farmers liquidate their stock from the cold storage by end of season i.e., generally in the month of November. The unit remains non-operational during the period between Dec. to Feb. Furthermore, lower agricultural output may have an adverse impact on the rental collections as the cold storage units collect rent on the basis of quantity stored and the production of potato is highly dependent on vagaries of nature. * Risk of delinquency in loans extended to farmers: Against the pledge of cold storage receipts, MSCSPL provides interest bearing advances to the farmers & traders. Before the closure of the season in November, the farmers & traders are required to clear their outstanding dues with the interest. In view of this, there exists a risk of delinquency in loans extended, in case of downward correction in potato or other stored goods prices, as all such goods are agro commodities. * Competition from other local players: In spite of being capital intensive, the entry barrier for new cold storage is low, backed by capital subsidy schemes of the government. As a result, the potato storage business in the region has become competitive, forcing cold storage owners to lure farmers by providing them interest bearing advances against stored potatoes which augments the business risk profile of the companies involved in the trade. * Leveraged capital structure with moderate debt coverage indicators: The long term debt equity ratio of the company improved as on Mar.31, 2020 as against Mar.31, 2019 and remained comfortable. However, overall gearing ratio deteriorated from 0.82x as on Mar.31, 2019 to 1.81x as on March 31, 2020 mainly on account of increase in debt levels as on balance sheet date due to higher utilization of cash credit limits. Moreover, the debt coverage indicators represented by total debt to GCA also deteriorated to 12.49x in FY20 over 4.86x in FY19. However, the interest coverage ratio improved marginally from 2.14x in FY19 to 3.16x in FY20. Key Rating Strengths * Experienced management and long track record of operations: MSCSPL started its commencement from March 2004 and thus has long track record of operations. Mr. Asit Manna and Mr. Banamali Manna looks after overall management of the company. Both the directors more than two decades of experience in cold storage business and is supported by a team of experienced professionals who have rich experience in the same line of business. * Proximity to potato growing area: MSCSPL's storing facility is situated in the Paschim Medinipur district of West Bengal which is one of the major potato growing regions of the state. The favourable location of the storage unit, in close proximity to the leading potato growing areas provides it with a wide catchment and making it suitable for the farmers in terms of transportation and connectivity. Liquidity: Stretched – Liquidity position of the company remained stretched marked by high bank limit utilisation and low cash balance as on March 31, 2020. Cash balance stood low at INR0.19 crore as on March 31, 2020. The average utilization of working capital limit was around 100% during last 12 months ended Jan.2021. The current ratio remained at 1.60x as on March 31, 2020. However, the operating cycle remained high marked by 181 days as on March 31, 2020 as the company is primarily engaged in the cold storage business and also undertakes trading activities of potatoes; accordingly its operation is working capital intensive. The average inventory holding period remained high during FY20 mainly on account of closing stock of potatoes remained unsold as on March 31, 2020. Moreover, the company has not availed moratorium of repayment of interest on working capital facilities for the months of March, 2020 to August 2020 which could be availed under the terms of recent RBI circular. Maa Subhala Cold Storage Private Limited. (MSCSPL), incorporated in the year 2003, is a Paschim Medinipur (West Bengal) based company, promoted by theManna family. It is engaged in the business of providing cold storage services to potato growing farmers and potato traders, having an installed storage capacity of 183,000 quintals in Paschim Medinipur district of West Bengal. The company also engages itself in trading of potato and also provides loans to farmers. Mr. Asit Manna and Mr. Banamali Manna looks after overall management of the company. Both the directors more than two decades of experience in cold storage business and is supported by a team of experienced professionals who have rich experience in the same line of business. PRASHANT ENTERPRISES: CARE Moves D Debt Rating to Not Cooperating ----------------------------------------------------------------- CARE Ratings has migrated the rating on bank facilities of Prashant Enterprises to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Short Term Bank Facilities 59.32 CARE D; ISSUER NOT COOPERATING Rating moved to ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE has been seeking information from Prashant Enterprises to monitor the rating(s) vide e-mail communications/letters dated January 25, 2021; January 21 2021; January 18, 2021 among others; a letter dated January 29, 2021 and numerous phone calls. However, despite our repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The rating on Prashant Enterprises' bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings have been moved to Issuer not cooperating category on account of non-receipt of requisite information and hence CARE is not able to conduct appropriate analysis. Detailed description of the key rating drivers At the time of last rating on August 19, 2020 the following were the rating weaknesses: Key Rating Weaknesses * Delays in debt servicing: There have been instances of delays in debt servicing by the company attributable to its stretched liquidity position on account of delays in collections from export customers. The firm's operations are highly working capital intensive as reflected from operating cycle of 410 days as on March 31, 2019 (PY: 369 days) on account of high inventory period. It maintains high inventory of more than 8 months for smooth running of production facilities. The firm's inventory days increased to 320 days (PY: 270 days). The average creditors period increased to 48 days as on March 31, 2019 (PY: 37 days) and the average collection period remained constant at 137 days as on March 31, 2019. The firm's operating cycle further elongated to 415 days as on March 31, 2020. The collection period also stood elongated at 118 days as on March 31, 2020 and the inventory period increased to 353 days as on March 31, 2020. * Small scale of operations: Prashant Enterprises reported a decline of 18.81% in its total operating income to INR69.09 crore in FY19 (refers to the period from April 01, 2018 to March 31, 2019) (PY: INR86.11 cr) on account of decrease in the exports. The firm earns majority of its sales revenue through export sales. The PBILDT margins in FY19 stood at 11.55% (PY: 11.42%). During FY20 (Prov) (refers to the period from April 01, 2019 to March 31, 2020), the company has reported income of INR67.32 cr and marginal increase in PBILDT margin to 13.70 % owing to the increase in PBILDT due to the decrease in cost of raw materials consumed. * Client concentration risk: Prashant Enterprises has high customer concentration risk with majority of sales to its top 5 customers exposing the firm to various risks related to changes in procurement policy of its major customers. The sales to top 5 customers during FY19 stood at 63.17% (PY: 65.60%) of the total sales. However, the long standing association with its customers mitigates this risk to an extent as the firm has an experience for more than 40 years. * Exposed to foreign exchange fluctuation: The firm earns most of its revenue from exports whereas it procures its raw materials locally. With procurement in domestic currency and sales realizations in foreign currency, the firm is exposed to the fluctuation in exchange rates. However, the firm manages this risk partially (upto 50%) by hedging, through forward cover and might increase the cover on case to case basis. Therefore, it remains exposed to forex risk for the unhedged portion. During FY19, the firm reported a profit of INR1.56 cr due to foreign exchange fluctuation. * Highly competitive and fragmented nature of industry: Prashant Enterprises operates in highly fragmented building hardware items manufacturing industry wherein the presence of large number of entities in the unorganized sector limits the bargaining power with customers. Further, the firm is also exposed to competitive pressures from established players situated in its exports markets. The demand for brass building hardware is dependent on building construction industry which is cyclical in nature. At present, the real estate development has slowed down and hence performance of the industry has also been impacted. The residential sector has been gravely hit with the occurrence of pandemic as the imposition of nationwide lockdown has brought down the sales to almost nil for most of the developers, while the construction activity has been halted completely and the collections are limited to the milestones achieved prior to lockdown. Even, in the event of resumption of operations post lockdown, fresh sales is expected to remain marginal with subdued demand on the back of pessimistic sentiments of buyers and construction activity is expected to remain passive on account of slower approval processes, disruption in supply chain and weakening of cash flows in the near term. * Constitution as partnership: Prashant Enterprise's constitution as a partnership firm has the inherent risk of possibility of withdrawal of the partner's capital at the time of personal contingency and firm being dissolved upon the death/retirement/insolvency of partners. Further, there has been withdrawal of capital by the partners in the past. Liquidity: Stretched: The limit utilization remains high and there have been instances of delays in debt servicing due to delays in collection of bills. Although the firm has low repayment obligation of INR0.80 Cr as on March 31, 2020 with GCA of INR4.20 Cr, the actual cash flow generation remains constrained due to substantially higher working capital requirements as reflected from operating cycle of 410 days as on March 31, 2019 (PY: 369 days) on account of high inventory period. Set up in 1979 as partnership firm by Singhal family, Prashant Enterprises is a manufacturer and exporter of building hardware materials comprising doorknobs, door handle, ceramic glass, aluminum doors, window hardware fittings, curtains finials & rods, tiebacks, holdbacks, etc. The manufacturing facility of Prashant Enterprises is located in Aligarh (Uttar Pradesh) with total installed capacity of 2,400 tons of building hardware as on March 31, 2019. The firm procures its raw material (brass, aluminum, zinc, iron/steel) from suppliers located in nearby areas (e.g. Aligarh, Hathras, Moradabad etc), whereas it earns all its revenue from exports to retail chains as well as wholesale traders in UK, Europe, South Africa and USA. RAJASTHAN BAL: CARE Moves D Debt Rating to Not Cooperating ---------------------------------------------------------- CARE Ratings has migrated the rating on bank facilities of Rajasthan Bal Kalyan Samiti (RBKS) to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 4.24 CARE D; ISSUER NOT COOPERATING Facilities Rating moved to ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE has been seeking information from RBKS to monitor the rating(s) vide e-mail communications dated January 11, 2021, January 19, 2021, January 22, 2021 and January 25, 2021 among others and numerous phone calls. However, despite our repeated requests, the society has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The rating on RBKS bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Detailed description of the key rating drivers At the time of last rating on November 28, 2019 the following were the rating strengths and weaknesses. Key Rating Weaknesses * Irregularity in debt servicing: There were delays in debt servicing in the past. Udaipur (Rajasthan) based Rajasthan Bal Kalyan Samiti (RBKS) was registered as a trust in March 1983 under Rajasthan Societies Registration Act 1958 by Mr. Pandit Jeevat Ram Sharma with an aim to provide the benefit to poor and tribal community in India focusing for betterment of women and children. RBKS is mainly engaged into education to poor and tribal community and currently operating 9 graduation colleges, 1 nursing college, 1 training college and 6 schools in the backward of area of Rajasthan. RBKS is also engaged into rural development activities like Natural Resource Management (NRM) activities, plantation activities, watershed program, women and child development etc. and undertakes various projects for National Bank for Agricultural and Rural Development (NABARD). RELIGARE ENTERPRISES: Hopes to Finalize Unit's Debt Restructuring ----------------------------------------------------------------- The Hindu BusinessLine reports that Religare Enterprises Ltd is hopeful of finalising the debt restructuring of Religare Finvest Ltd by the end of the current fiscal, and is also looking at a possible listing of its health insurance subsidiary, possibly in the coming year. "We are at a very advanced stage of the resolution plan being discussed with the lenders. Within this fiscal year, we expect to have a clear roadmap for that business," BusinessLine quotes Nitin Aggarwal, Group Chief Financial Officer, Religare Enterprises Limited (REL), as saying. In an interaction with BusinessLine, Mr. Aggarwal said talks are on with the bankers on what option has to be taken for the restructuring. "We have investors ready to invest, and REL is also ready to hold the company and invest in the company," he said, when asked about the options available. According to BusinessLine, Mr. Aggarwal is optimistic about the revival of the lending businesses after the restructuring is done. "Lending will start after the restructuring. We are doing small-scale lending in the home finance business. SME lending we will be able to start lending only after the debt restructuring is completed and we have permission from the Reserve Bank of India," he said. Previously, the RBI had rejected a proposal to allow TCG Advisory, which is part of NRI investor Purnendu Chatterjee's The Chatterjee Group, to pick up a stake in the company, BusinessLine recalls. However, the other two arms of REL - health insurance and retail broking - are now on an upswing. "If RFL is put on track this fiscal year, then next fiscal all four businesses will be on a good growth path. That is what the entire Religare team is working towards," Mr. Aggarwal, as cited by BusinessLine, said. Religare Enterprises Ltd is a Core Investment Company (CIC) which owns and manages RFL (SME lending), Care Health Insurance, Religare Broking, and Religare Housing Development Finance Corporation (affordable housing finance). RIDDHI PRINT: CARE Moves D Debt Rating to Not Cooperating Category ------------------------------------------------------------------ CARE Ratings has migrated the rating on bank facilities of Riddhi Print and Pack Private Limited (RPL) to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 16.23 CARE D; ISSUER NOT COOPERATING Facilities Rating moved to ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE has been seeking information from RPL's to monitor the rating(s) vide e-mail communications/letters dated January 27, 2021, January 25, 2021, January 22, 2021, January 19, 2021 and January 5, 2021 and numerous phone calls. However, despite repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The rating on Riddhi Print And Pack Private Limited bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. The rating takes into account delays in debt servicing. Detailed description of Key rating drivers At the time of last rating on January 28, 2020, the following were the rating strengths and weaknesses: Key rating Weakness * Ongoing delays in debt servicing: As per the written feedback received from the banker, there has been delay of 10-15 days in servicing of its term loan obligation due to stretched liquidity position. However there are no continuous overdraws in cash credit account for 30 days. Incorporated in 1995, Riddhi Print & Pack Private Limited (RPL) is engaged in the business of manufacturing of printed corrugated cartoons and offset printers (viz. corrugated box, printed cartons, offset printers, and other packing box). It has its manufacturing facility located at Vasai and Valsad. SHANTI HOSPITAL: CARE Lowers Rating on INR15cr LT Loan to D ----------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Shanti Hospital (SH), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank Facilities 15.00 CARE D Revised from CARE BB-; Stable Detailed Rationale & Key Rating Drivers The rating assigned to the bank facilities of SH factors in the on-going delay in servicing its term loan debt obligations. The rating also continuous to be tempered by small scale of operations, high vulnerability to treatment-related risks and regulatory risks, highly competitive due to organized and established players and Constitution of the entity as a partnership firm with inherent risk of withdrawal of capital. Rating Sensitivities Positive Factors (Factors that could lead to positive rating action/upgrade) * Timely servicing of debt obligations for more than 90 days Detailed description of the key rating drivers Key Rating Weaknesses * Ongoing delays in servicing debt obligations: As per bank statement analysis, it is observed that there were delays of 1- 2 days in servicing term loan debt obligations along with penal charges. * Small scale of operations although increase in total operating income during FY20: The total operating income of the firm increased during the year FY20 and stood at INR10.65 crore as compared to INR10.05 crore in FY19 on back of increase in number of patients being served by the hospital during FY20. * High vulnerability to treatment-related risks and regulatory risks: Healthcare is a highly sensitive sector where any mishandling of a case or negligence on the part of any doctor and/or staff of the unit can lead to distrust among the masses. Thus, all the healthcare providers need to monitor each case diligently and maintain high operating standard to avoid the occurrence of any unforeseen incident which can damage the reputation of the hospital to a large extent. Further, the operations of hospital are subject to various rules and regulations laid by respective authorities at State and Central government level. Any instance of non-compliance of these rules and regulations would impact the operations of hospital resulting into deterioration of financial risk profile of the company. * Highly competitive due to organized and established players: The hospital industry is highly competitive with a large number of established organized players and their growing network. The healthcare and specialty hospitals sector mainly comprises of large national level players, organized regional players, government hospitals, charitable trusts and a large number of nursing home and Multi-specialty clinics making it highly competitive. * Constitution of the entity as a partnership firm with inherent risk of withdrawal of capital: The firm being a partnership firm is exposed to inherent risk of capital withdrawal by the partners, due to its nature of constitution. Further, any substantial withdrawals from capital account would impact the net worth and thereby the financial profile of the firm. The partners have withdrawn capital of INR0.46 crore during FY20. Key Rating Strengths * Qualified and experienced partners for more than three decades in medical professional services: SH is promoted by Dr. Rajendra Patil and Dr. Sunil Biradar Patil. Dr. Rajendra Patil and Dr. Sunil Biradar Patil both are Pediatricians, and have more than three decades of experience and more than one decade of experience respectively with this entity. The firm has well qualified and experience staff to serve its patients. * Satisfactory profitability margins: The PBILDT margin has improved by 30 basis points and stood at 29.19% in FY20 as compared to 28.89% in FY19. The PAT margin of the firm declined by 12 basis points and stood at 18.97x in FY20 as against to 19.09% in FY19 due to absorption of finance cost, depreciation costs albeit to increase of PBILDT in absolute terms. * Moderate Capital structure and comfortable debt coverage indicators: The overall gearing of the firm stood comfortable at 1.21x in FY20 against 1.29x in FY19. The debt profile of the firm consists of working capital borrowings of INR0.46 crore, interest free unsecured loans of INR0.30 crore and term loan of INR9.05 Crore as on March 31, 2020. The interest coverage ratio of the firm although deteriorated stood comfortable at 10.13x in FY20 as against 15.01x in FY19 due to increase in interest cost during the year. Further, total debt/GCA also deteriorated and stood at 3.52x in FY20 as against 3.07x in FY19 on account of increase in total debt as on March 31, 2020. Liquidity: Stretched- liquidity marked by tightly matched accruals to repayment obligations, low cash balance of INR0.10 Crore and below unity current ratio of INR0.11x as on March 31, 2020. Further, the firm had availed moratorium announced by RBI on its debt obligations from March 01, 2020 to August 31, 2020. Shanti Hospital (SH) initially started its operations in 1986, with a constitution of Hindu Undivided Family (HUF), and was then known as Shanti Children Hospital. Later, the entity was converted into Partnership firm in 2008. In 2011 the firm changed its name to current nomenclature. Currently, SH has 100 beds, operational in Bagalkot, Karnataka and is promoted by Dr. Rajendra Patil and Dr. Sunil Biradar Patil. It is a Multi-Specialty Hospital spread across a cumulative area of 35,000 sq. ft. with modern equipment and infrastructure. THANGAMMAN TEXTILES: CRISIL Reaffirms B Rating on INR2.4cr Loan --------------------------------------------------------------- CRISIL Ratings has reaffirmed its 'CRISIL B/Stable/CRISIL A4' ratings on the bank facilities of Thangamman Textiles - Coimbatore (TT). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 0.21 CRISIL A4 (Reaffirmed) Cash Credit 2.25 CRISIL B/Stable (Reaffirmed) Proposed Fund- Based Bank Limits 1.12 CRISIL B/Stable (Reaffirmed) Term Loan 2.40 CRISIL B/Stable (Reaffirmed) Working Capital Term Loan 1.02 CRISIL B/Stable (Reaffirmed) The ratings continue to reflect the firm's modest scale of operations, below-average financial risk profile, and large working capital requirement. These weaknesses are partially offset by the extensive experience of the partners in the textile industry. Key Rating Drivers & Detailed Description Weaknesses: * Modest scale of operations: The scale of operations remains modest, as reflected in estimated revenue of INR11.50 crore in fiscal 2020, mainly on account of the highly fragmented textile industry constraining the firm's ability to scale up. * Below-average financial risk profile: Networth is small, estimated at INR2.1 crore, and total outside liabilities to adjusted networth ratio is high, estimated at 2.7 times, as on March 31, 2020. Debt protection metrics were average, as indicated by estimated interest coverage and net cash accrual to adjusted debt ratios of 2.51 times and 0.14 time, respectively, for fiscal 2020. The financial risk profile is expected to remain below average, over the medium term. * Large working capital requirement: Gross current assets is estimated to be high at 143 days, because of inventory of 60 days as on March 31, 2020. It is expected to be at similar levels over the medium term. Strengths: * Extensive experience of the partners and their family members: The partners and their family members have experience of over 2 decades in the textile industry. This has helped them establish strong relationships with customers and suppliers. Liquidity: Stretched Cash accrual is tightly matched against term debt repayment. Cash accrual is expected to be INR0.8 to 1 crore, per annum, against term debt obligation of INR0.6 crore, per annum, over the medium term. Bank limit utilisation of the fund based limit of INR2.25 crore was high at around 90% for the 12 months ended January 2021. No major capital expenditure (capex) is planned over the medium term. Outlook Stable CRISIL Ratings believes that TT will continue to benefit from the extensive experience of its partners. Rating Sensitivity factors Upward factors * Sustained improvement in scale of operations by 20% and stable operating margin, leading to higher cash accrual * Improvement in the working capital cycle Downward factors * Significant decline in revenue or profitability margin, leading to lower net cash accrual to term debt repayment ratio of less than 1 time * Large, debt-funded capex or substantial increase in working capital requirement, weakening the financial profile Based in Coimbatore, Tamil Nadu, TT manufactures cotton yarn. The firm was established by the late Mr Gopalkrishnan in 2014 as a sole proprietorship concern, and was reconstituted as a partnership firm in 2018. Its daily operations are managed by the founder's wife, Ms S Maheswari, and son, Mr S Gopalakrishnan. VASAVI PIPES: CRISIL Keeps B Debt Ratings in Not Cooperating ------------------------------------------------------------ CRISIL Ratings said the ratings on bank facilities of Vasavi Pipes Private Limited (VPPL) continue to be 'CRISIL B/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL B/Stable (Issuer Not Cooperating) Proposed Long Term 5 CRISIL B/Stable (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with VPPL for obtaining information through letters and emails dated July 25, 2020 and January 19, 2021 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of VPPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on VPPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of VPPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'. VPPL, incorporated in 2006, is a part of the Vasavi group. It trades in PVC pipes and fittings. It is based in Guntakal (Andhra Pradesh) and is managed by Ms. S Sridevi. VENKATESWARA ENTERPRISES: CRISIL Reaffirms B+ Loan Ratings ---------------------------------------------------------- CRISIL Ratings has reaffirmed its ratings on the bank facilities of Venkateswara Enterprises (VE) at 'CRISIL B+/Stable'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6.5 CRISIL B+/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 14.0 CRISIL B+/Stable (Reaffirmed) The ratings continue to reflect a modest scale of operations in the fragmented veneers and plywood trading industry, and large working capital requirement. These weaknesses are partially offset by the extensive industry experience of the proprietor. Key Rating Drivers & Detailed Description Strengths: * Extensive industry experience of the proprietor: A presence of over a decade in the veneers and plywood trading industry has enabled the proprietor to establish a strong relationship with customers and suppliers. Weakness: * Modest scale of operations in a fragmented industry: Revenue was modest at INR17.78 crore in fiscal 2020. The scale of operations is constrained by the highly-fragmented nature of the industry due to a low entry barrier and limited capital requirement. There are a large number of unorganized players catering mainly to regional demands. * Large working capital requirement: Gross current assets were high at 207 days as on March 31, 2020, due to stretched receivables of 179 days. Against this, credit from suppliers is limited. Liquidity: Stretched Bank limit utilisation is high at around 98.99 percent for the past twelve months ended Dec-20. Cash accrual are expected to be over INR0.25 crores which are sufficient against nil term debt obligation over the medium term. Current ratio are moderate at 1.19 times on March31, 2020 Outlook: Stable CRISIL Ratings believes VE will continue to benefit over the medium term from proprietor's extensive experience. Rating Sensitivity factors Upward factor * Improvement in revenues at above 20%, leading to better margin above 9% and higher accruals. * Moderate bank limit utilisation at around 80% Downward factor * Decline in revenues at 15%, leading to fall in margin. * Any major withdrawals. Set up as a proprietorship firm in 2006 in Chennai by Mr Devender Goel, VE trades in veneer and plywood. VIZAG COMPANYS: CRISIL Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Vizag Companys Steel (VCS) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 15 CRISIL D (Issuer Not Cooperating) Proposed Long Term 3 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with VCS for obtaining information through letters and emails dated July 25, 2020 and January 19, 2021 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of VCS, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on VCS is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of VCS continues to be 'CRISIL D Issuer Not Cooperating'. VCS was set up in 2002 as a partnership firm by Mr. Ashok Chaudhary and Mr. Yashwant. The firm trades in thermomechanically treated bars and billets. It is based in Visakhapatnam, Andhra Pradesh. WOODVILLE PALACE: CRISIL Keeps D Debt Rating in Not Cooperating --------------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Woodville Palace Hotel (WPH) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 20 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with WPH for obtaining information through letters and emails dated July 25, 2020 and January 19, 2021 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of WPH, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on WPH is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of WPH continues to be 'CRISIL D Issuer Not Cooperating'. Established in 1980 as a proprietorship firm by Mr Raj Kumar Uday Singh, WPH operates a hotel, Woodville Palace, in Shimla. The property comprises 24 rooms, and is currently being renovated and expanded to 50 rooms. ================= I N D O N E S I A ================= BARITO PACIFIC: Fitch Affirms Then Withdraws 'B' LongTerm IDR ------------------------------------------------------------- Fitch Ratings has affirmed Indonesia-based PT Barito Pacific Tbk's Long-Term Issuer Default Rating at 'B' with a Stable Outlook. Fitch has simultaneously withdrawn the rating. Barito's rating benefits from its diversified presence across the petrochemical and energy sectors, its leading market position as Indonesia's largest petrochemical producer and strong record in geothermal operations, with long-term contracts driving stable revenue. The rating also reflects Barito's fractured shareholding in key operational subsidiaries and low holding-company interest cover. Barito, as a holding company, relies on cash from its subsidiaries, PT Chandra Asri Petrochemical Tbk (CAP, BB-/Stable) and Star Energy Group Holdings Pte Limited. Fitch assesses the Barito group's credit profile at 'b+' and rates Barito one notch below at 'B', with the two subsidiaries proportionately consolidated, in light of the fractured shareholding in CAP and Star Energy, its key businesses, and cash flow subordination arising from restrictive covenants on debt at the operating entities. Fitch is withdrawing the rating of Barito as it is no longer considered by Fitch to be relevant to the agency's coverage because the entity is no longer issuing offshore debt. KEY RATING DRIVERS Diversified Businesses: Barito's investments are diversified among petrochemicals through CAP, and power through Star Energy, the largest Indonesian geothermal energy producer. Fitch expects Barito to continue to benefit from CAP's dividends, which may be volatile, and improving dividends from Star Energy. Fractured Shareholding; Structural Subordination: Barito's access to CAP's and Star Energy's cash flow is limited by its shareholding structure. Barito effectively holds 47% of CAP and, through its 67% holding of Star Energy, effectively owns between 35%-40% of Star Energy's operating assets. The structure results in significant dividend leakage to minority shareholders, and the covenants on the debt at the operating entities limit cash leakage and lead to structural subordination. Fitch therefore rates Barito one notch below the group credit profile. Low Holding-Company Interest Cover: Fitch expects the Barito holding company's interest cover to weaken to 0.8x in 2021 (2020: 1.8x), driven by an increase in interest expense after the drawdown of USD184 million from a USD253 million term-loan facility for its share of a joint venture (JV) investment in the Java9 &10 power project under PT Indo Raya Tenaga. The interest cover is also affected by Fitch's expectation of lower dividends from CAP as tighter petrochemical spreads hit its profitability. The higher interest cover in 2020 was helped by the receipt of USD52 million in dividends from the Star Energy Geothermal (Salak-Darajat) Restricted Group (SEGSD RG, senior secured debt: BBB-/Stable) after its US dollar note issuance. Consolidated Leverage to Improve: Fitch expects the group's net leverage - measured by net debt/EBITDA with CAP and Star Energy proportionately consolidated - to decline to 4.1x in 2021 after rising to 5.0x in 2020 (2019: 3.7x) because of a recovery in CAP's operating performance. Net leverage in 2020 jumped due to an increase in borrowings at the Barito holding-company level and lower EBITDA generation at CAP. Stable Geothermal Operations: Star Energy's established operations and long-term contracts with PT Perusahaan Listrik Negara (Persero) (PLN, BBB/Stable), which have residual terms of 20 years or more, result in stable revenue and cash flow, enhancing Barito's consolidated credit profile. Star Energy's operations benefit from high availability, inherently low operating costs and the long operating history of its assets. Fitch expects Star Energy's financial performance to be stable with EBITDA generation of around USD410 million per annum. Weak Linkage with CAP: Fitch assesses the linkage between CAP and its largest shareholder, Barito, as 'Weak', due to a financial profile divergence and evidence of ring-fencing to prevent material cash leakage. CAP's capacity to make restricted payments under the bond covenants, based on 50% of consolidated net income, has dropped due to a net loss in 9M20. CAP did not pay final dividends in 1H20 due to weak product spreads and instead used part of its cash balance to prepay long-term borrowings, while Fitc expects the Barito holding company's borrowings to rise. Moderate Spreads at CAP: Fitch expects spreads to stay low for most petrochemical products affected by demand reduction amid the coronavirus pandemic and supply issues from global capacity additions. Average product spreads fell sharply in 9M20, resulting in CAP's EBITDA margin falling to 5.2%. Fitch estimates CAP's EBITDA margin remained low at 6.8% in 2020 (2019: 9.3%), before improving to 9.9% in 2021 with the stabilisation of supply and demand of petrochemical products. CAP2 Capex Delay: CAP expects capex to be delayed and the final investment decision (FID) for its second petrochemical complex, CAP2, to be pushed to 2022 because of coronavirus-related volatility. Fitch expects pre-FID CAP2 capex of around USD300 million to be incurred in 2021 and 2022. Fitch estimates total investment cost for CAP2 to be around USD5 billion, but have only factored in pre-FID capex - mainly land acquisition costs - in Fitch's analysis, as the project's ownership and funding structure have yet to be finalised. DERIVATION SUMMARY Barito's ratings reflect its diversified petrochemical and energy businesses - it has the largest petrochemical and geothermal operations in Indonesia. The ratings also factor in Barito's moderate financial profile (with CAP and Star Energy proportionately consolidated), its fractured shareholding in key operating subsidiaries and subordination due to cash flow restrictions arising from debt at its operating subsidiaries. Golden Energy and Resources Limited's (GEAR, B+/Stable) financial profile is stronger than that of Barito group's financial profile (with CAP and Star Energy proportionately consolidated), although the diversification of Barito's cash flow results in a similar assessment of their group credit profiles. However, Barito's fractured shareholding and structural subordination result in a rating that is one notch below its group credit profile. In comparison, GEAR is rated at the same level as its 67%-owned coal subsidiary, PT Golden Energy Mines Tbk (GEMS, B+/Stable), reflecting the absence of material debt at GEMS and stronger access to cash flow, as the subsidiary's policy of high dividend payouts explains the one-notch difference between GEAR and Barito. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: -- Marginal improvement in CAP's petrochemical product margins (spreads) in 2021 to USD83/ton -- (2020: USD51/ton) -- CAP's dividend payout ratio of 40% in 2021 and 2022, no payouts in 2020 -- Capex of around USD500 million until 2022, of which USD360 million will be incurred by CAP and the balance by Star Energy -- Star Energy's units operating at an average availability rate of around 94% -- Tariffs in line with PLN's long-term contracts -- Dividend received from Star Energy to range from USD25 million to USD30 million in 2021 and 2022 RATING SENSITIVITIES Rating sensitivities are no longer relevant as the rating has been withdrawn. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. LIQUIDITY AND DEBT STRUCTURE Manageable Holding-Company Liquidity: Fitch estimates the holding company's cash balance of about USD80 million at end-2020 and dividends of USD33 million from Star Energy and CAP will be sufficient to cover its scheduled debt repayment of about USD50 million and interest costs of about USD28 million over the next 12 months. Fitch expects Barito to be able to raise the funds as a result of its sound access to bank funding and record of timely fund raising from the debt and equity markets. Barito's liquidity was boosted by the receipt of USD114 million in June 2020 from the warrants exercised by two large shareholders. In addition to the USD253 million Bangkok Bank facility, Barito raised USD52 million from the rupiah bond market in 2020. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Following the withdrawal of ratings for Barito, Fitch will no longer be providing the associated ESG Relevance Scores. ========= J A P A N ========= KEISEI ELECTRIC: Egan-Jones Lowers Sr. Unsecured Ratings to BB+ --------------------------------------------------------------- Egan-Jones Ratings Company, on February 8, 2021, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Keisei Electric Railway Co., Ltd. to BB+ from BBB-. Headquartered in Ichikawa, Chiba, Japan, Keisei Electric Railway Co., Ltd. provides passenger rail and bus transportation services in the Metropolitan Tokyo and Chiba prefecture areas. TOBU RAILWAY: Egan-Jones Lowers Senior Unsecured Ratings to BB- --------------------------------------------------------------- Egan-Jones Ratings Company, on February 11, 2021, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Tobu Railway Co., Ltd. to BB- from BB. Headquartered in Tokyo, Japan, Tobu Railway Co., Ltd. mainly provides passenger rail and bus transportation services. =============== M A L A Y S I A =============== [*] MALAYSIA: Listed Companies Gain Temporary Relief Measures ------------------------------------------------------------- The Star reports that the Securities Commission and Bursa Malaysia will allow listed issuers more time to prepare their financial statements and put in place regularisation plans amid the Covid-19 pandemic. These temporary relief measures will be in addition to the measures announced in 2020. There will be an automatic one-month extension for the issuance of quarterly and annual reports for the Main and ACE markets as well as semi-annual and annual audited financial statements for the LEAP Market, said the regulators in a statement, The Star relays. The documents are due on Feb. 28, March 31 and April 30, 2021, respectively. "Notwithstanding the 1-month extension, listed issuers are reminded to comply with the disclosure obligations under the Listing Requirements, including making immediate announcements of any material information to ensure that shareholders and investors have access to information in a timely manner," the regulators, as cited by The Star, said. There will also be a relief period granted to listed issuers with unsatisfactory financial conditions and inadequate levels of operations. According to The Star, listed issuers that announce between Jan. 1 and June 30, 2021, that they have insignificant business or operations will be granted a 12-month relief period to reassess its condition before making the requisite announcements. There will be a 24-month regularisation timeframe instead of 12 months for listed issuers that announce between Jan 1 and June 30, 2021, that they have ceased all or major business or operations or are classified as a PN17/GN3 listed issuer, The Star relates. There will also be a continuation of the extended relief period for listed issuers that trigger the suspended PN17 or GN3 criteria. Listed issuers that trigger the criteria between April 17, 2020 and June 30, 2021 will have an 18-month relief period instead of 12 months to reassess their financial condition, adds The Star. ===================== N E W Z E A L A N D ===================== SIKA HOMES: Homeowner Fights for Master Builders Guarantee ---------------------------------------------------------- Stuff.co.nz reports that when the company Mark Gumbrell hired to build his new home went bust in June, the Auckland man was worried but assumed he could rely on its Master Builder backing to keep the project on track. Mr. Gumbrell's worry turned to anger, however, when he discovered that Sika Homes had failed to arrange the Master Builders' guarantee which would have covered the extra cost he faced to get his home completed, Stuff says. Master Builders is a private industry marketing and support association for builders, and its guarantee is designed to promote public confidence in its member building companies, including protecting them in case their builder goes bust before completing their homes. "I agreed to Sika building my home as they were a Master Builder and would provide a Master Builder Guarantee, which they confirmed they would both orally and via email, but when they went into liquidation, I had no such guarantee," Stuff quotes Mr. Gumbrell as saying. After being contacted by Stuff, Master Builders denied Mr. Gumbrell's claim had been turned down, and it promised to contact Mr. Gumbrell to re-start the claims process. "Master Builders remain open to continuing to talk and to finding a resolution," it said. "Master Builders believes there may be grounds for a claim, but require further information in order to make a decision," it said. "This is not a straightforward situation." According to Stuff, the media statement Mr. Gumbrell referred to was made 2016, in which Master Builders told TVNZ that its practice was to honour the guarantee, if a homeowner could show they had paid for it, even if one of its member builders had failed to apply for it. The interview happened after a couple's builder went bust, and they discovered their builder had not applied for the guarantee, Stuff relates. In earlier email correspondence, Master Builders told Mr. Gumbrell that the contract he signed with Sika warned him that he had to contact Master Builders within 14 days of signing a contract with his builder, if he hadn't heard from Master Builders. Mr. Gumbrell had not done that, it said, but he had initialled the page of the Master Builders' contract that contained the 14-day clause, Stuff relays. According to Stuff, Mr. Gumbrell estimated that by the time Sika failed he had paid for about $200,000 of building work that had not been completed. He hired a new builder, which had nearly completed the work, but he had spent so much, he did not now expect to ever live in it, and planned to sell it. Stuff relates that Mr. Gumbrell said work started on the home in Wai O Taiki Bay in Auckland's eastern suburbs in October 2019, but progressed slowly, and by the time Auckland went into Covid-19 lockdown in April, construction was behind schedule. Mr. Gumbrell has been in contact with his local MP Simon O'Connor from the National Party in a bid to get MPs to revisit the idea of requiring guarantees in law on every new build as a means of protecting the public. Stuff adds that liquidators Steven Khov and Kieran Jones said they had been advised Sika Homes' failed because excessive labour costs and other project cost overruns eroded profit and margins resulting in an unsustainable business model. ********* 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 publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. *** End of Transmission ***