/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/210408.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, April 8, 2021, Vol. 24, No. 65 Headlines A U S T R A L I A BLIGH ST: First Creditors' Meeting Set for April 15 MAX PRINT: Second Creditors' Meeting Set for April 15 MCKENZIE BULK: First Creditors' Meeting Set for April 15 PROJECT NOAH: Second Creditors' Meeting Set for April 14 SUPERWATT AUSTRALIA: First Creditors' Meeting Set for April 14 C H I N A BRILLIANCE AUTO: Faces Lawsuits Over $457 Million Unpaid Debt NINGXIA YUANGAO: Bourse Condemns Chair Who Fled Ahead of Default TD HOLDINGS: To File Restated Financial Statements I N D I A ANUNDAN PROPERTIES: Insolvency Resolution Process Case Summary BANSAL IRON: ICRA Keeps B+ Debt Rating in Not Cooperating BESTO MINING: ICRA Keeps B+ Debt Ratings in Not Cooperating BHASKARA MARKETING: ICRA Keeps B+ Debt Rating in Not Cooperating C.I. BUILDERS: CRISIL Migrates B- Debt Ratings to Not Cooperating DHURIA RICE: ICRA Keeps B Debt Rating in Not Cooperating ECO HEALTH: CRISIL Migrates B Debt Ratings to Not Cooperating GSH FACILITIES MANAGEMENT: Insolvency Resolution Case Summary INSPAN INFOTECH: Insolvency Resolution Process Case Summary JAK ASSOCIATES: ICRA Keeps B+ Debt Ratings in Not Cooperating KAMALA BOARD: ICRA Keeps B+ Debt Ratings in Not Cooperating KEVA IMPEX: CRISIL Keeps B+ Debt Rating in Not Cooperating KRISHNA GINNING: CRISIL Keeps B+ Debt Rating in Not Cooperating MA SARADA: ICRA Keeps D Debt Ratings in Not Cooperating Category MAA SHEETLA: ICRA Keeps B+ Debt Rating in Not Cooperating MAAVE ELECTRONICS: Insolvency Resolution Process Case Summary MOTOR WORLD: CRISIL Lowers Rating on INR18cr Loan to B NARAYANI STEELS: Insolvency Resolution Process Case Summary NAVEEN FILTERS: CRISIL Reaffirms B+ Rating on INR6.0cr Cash Loan NEERUS ENSEMBLES: ICRA Keeps B+ Debt Ratings in Not Cooperating OYO HOTELS: In Insolvency Process; Claims Due on April 15 OYO HOTELS: Insolvency Resolution Process Case Summary POPULAR SHOE: ICRA Keeps B+ Debt Rating in Not Cooperating PRAYOSHA HEALTHCARE: CRISIL Lowers Rating on INR8.0cr Loans to B RAM COTTEX: ICRA Keeps B Debt Rating in Not Cooperating Category REAL ASSAM: CRISIL Lowers Rating on INR5cr Cash Loan to B RHG CONSTRUCTIONS: CRISIL Moves B+ Debt Rating to Not Cooperating RIDDHI SIDDHI: CRISIL Keeps B+ Debt Rating in Not Cooperating ROHIT FABTEX: ICRA Keeps B+ Debt Rating in Not Cooperating RUDRA FLOUR: CRISIL Moves B+ Debt Ratings to Not Cooperating SARATHA ELECTRO: CRISIL Lowers Rating on INR3.62cr Loan to B SELECT CORPORATION: First Creditors' Meeting Set for April 14 SESHA SAILA: Insolvency Resolution Process Case Summary SONA PROCESSORS: ICRA Keeps B+ Debt Ratings in Not Cooperating SUDHA SESAMUM: ICRA Keeps B+ Debt Ratings in Not Cooperating SYNERGY COSMETICS: Insolvency Resolution Process Case Summary TATA STEEL: S&P Hikes ICR to 'BB-' on Deleveraging, Outlook Stable VVG PAPER: CRISIL Reaffirms B+ Rating on INR26.75cr Loans ZENICA CARS: Insolvency Resolution Process Case Summary [*] INDIA: Tests Water With Quicker Ready-Made Bankruptcy Process S I N G A P O R E 3CNERGY: Auditors Raise Going Concern Doubt AXINGTON INC: Now a Cash Company, Faces Risk of Delisting EAGLE HOSPITALITY TRUST: DBS Will Unlikely Recover $25 Million - - - - - ================= A U S T R A L I A ================= BLIGH ST: First Creditors' Meeting Set for April 15 --------------------------------------------------- A first meeting of the creditors in the proceedings of Bligh St Collective Pty Ltd, trading as Saint Pablo, will be held on April 15, 2021, at 11:00 a.m. via Microsoft Teams. Christopher Damien Darin of Worrells Solvency & Forensic Accountants was appointed as administrators of Bligh St Collective on April 1, 2021. MAX PRINT: Second Creditors' Meeting Set for April 15 ----------------------------------------------------- A second meeting of creditors in the proceedings of Max Print Group Pty. Ltd. has been set for April 15, 2021, at 2:30 p.m. at Restructuring Works, Level 8, 80 Clarence St, in Sydney, NSW. 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 April 15, 2021, at 4:00 p.m. Clifford John Sanderson of Restructuring Works was appointed as administrator of Max Print Group on March 10, 2021. MCKENZIE BULK: First Creditors' Meeting Set for April 15 -------------------------------------------------------- A first meeting of the creditors in the proceedings of McKenzie Bulk Haulage Pty Ltd will be held on April 15, 2021, at 10:30 a.m. The meeting will be held via the Zoom application with the login details: Meeting ID: 959 3088 2504 Meeting Password: 029625 Meeting URL: https://zoom.us/j/95930882504?pwd=YTRtRUc4T0xxRExJOVA2NXJBOTRKUT09 Steven Staatz at Vincents was appointed as administrator of McKenzie Bulk on April 5, 2021. PROJECT NOAH: Second Creditors' Meeting Set for April 14 -------------------------------------------------------- A second meeting of creditors in the proceedings of Project Noah Holdings Pty Ltd has been set for April 14, 2021, at 11:00 a.m. via Teleconference Only. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by April 13, 2021, at 4:00 p.m. Christopher John Baskerville of Jirsch Sutherland was appointed as administrator of Project Noah on March 1, 2021. SUPERWATT AUSTRALIA: First Creditors' Meeting Set for April 14 -------------------------------------------------------------- A first meeting of the creditors in the proceedings of Superwatt Australia Pty Ltd will be held on April 14, 2021, at 11:30 a.m. by telephone facilities. Travis Kukura and Greg Dudley of RSM Australia Partners were appointed as administrators of Superwatt Australia Pty Ltd on March 31, 2021. ========= C H I N A ========= BRILLIANCE AUTO: Faces Lawsuits Over $457 Million Unpaid Debt ------------------------------------------------------------- An Limin and Han Wei at Caixin Global report that China's state-owned carmaker Brilliance Auto Group Holdings Co. Ltd., which rattled the country's bond market last year with a high-profile default, faces a pile of lawsuits claiming unpaid debts totaling almost CNY3 billion (US$457 million), as the company struggles with a restructuring. A latest suit against Brilliance Auto was filed by Mianyang City Commercial Bank, involving CNY60 million of disputed debt, the company said last week in a statement, Caixin relates. The Sichuan-based bank sued Brilliance Auto along with two affiliated companies, Mianyang Huaxiang Machinery Co. and Mianyang Huarui Auto Co. Brilliance Auto Group Holdings Co., Ltd., manufactures automobiles. The Company produces passenger cars, commercial cars, and more. Brilliance Auto Group Holdings also sells spare parts. Shenyang-based Brilliance Auto started bankruptcy restructuring in November after it failed to repay money due creditors, Caixin notes. A local court determined that the company did not have sufficient assets to repay all its debts but that it "has value and could possibly be saved," Caixin said. NINGXIA YUANGAO: Bourse Condemns Chair Who Fled Ahead of Default ---------------------------------------------------------------- Wang Juanjuan and Luo Meihan at Caixin Global report that the Shanghai bourse has condemned a businessman who fled the Chinese mainland a few weeks before his company defaulted on a CNY100 million (US$15.2 million) bond, saying he displayed "a negative attitude toward resolving and dealing with bond credit risk." According to Caixin, the Shanghai Stock Exchange's public censuring of Gao Hongming and his son Gao Yuan comes as part of broader efforts to clean up the bond market after a wave of corporate defaults last year set off a financial earthquake. Last week, the exchange issued a disciplinary penalty to Ningxia Yuangao Industrial Group Co. Ltd. as well as to the father and son, who are the company's chairman and information disclosure chief, respectively, Caixin recalls. According to Caixin, the bourse said that they had committed a series of rule violations, including counterfeiting official documents to guarantee bond issuances, failing to disclose information that may affect the company's solvency and bond prices, and failing to manage credit risk around the bond default. Ningxia Yuangao Industrial Group Co.,Ltd produces metal products. The Company manufactures and sells wind turbine towers, steel structures, copper powders, silicon carbide, and other products. Ningxia Yuangao Industrial Group markets its products throughout China. TD HOLDINGS: To File Restated Financial Statements -------------------------------------------------- The Audit Committee of the Board of Directors of TD Holdings, Inc., after discussion with the Company's management, concluded that the Company's previously issued financial statements contained in its Quarterly Reports on Form 10-Q for the periods ended March 31, 2020, June 30, 2020, and Sept. 30, 2020, originally filed on June 26, 2020, Aug. 14, 2020, and Nov. 13, 2020, respectively, should no longer be relied upon. Similarly, related press releases, earnings releases, and investor communications describing the Company's financial statements for the Non-Reliance Periods should no longer be relied upon. The Company's review of the filings revealed that (1) in accordance with FASB ASC Topic 606, Revenue from Contracts with Customers, service revenues previously recognized for supply chain management services have been determined to not meet the definition of US GAAP; (2) sales revenues from commodity trading business may need to be amended since certain transactions shall be further evaluated whether the Company is a principal or an agent; and (3) in accordance with FASB ASC Topic 850, Related Party Disclosures, transactions with certain related parties shall be properly identified or disclosed. This does not affect the Company's cash position, cash flow or liquidity, but the potential reversal of recognition of supply chain management services may materially decrease the Company's revenue and net income, and the potential net presentation of sales from commodity trading business may materially decrease the Company's revenue. The Company intends to file restatements of its financial statements for the Non-Reliance Periods to amend and restate financial statements and other financial information. The restatements are expected to have an impact on the financial statements for the Non-Reliance Periods with changes reflected in the relevant financial statements, due to reversal of revenues from supply chain management and net presentation of revenues from commodity trading business, which impacted the Company's net income (loss) and earnings (loss) per share, and related disclosures and Management's Discussion and Analysis of Financial Condition and Results of Operations. In addition, the identification of related parties may change the footnote for related parties. Changes due to the restatement are expected to have significant impact on our operations. Management is assessing the effect of the restatements on the Company's internal control over financial reporting and its disclosure controls and procedures. The Company expects to report one or more material weaknesses following completion of its investigation of the cause of these restatements. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of a company's annual or interim financial statements will not be prevented or detected on a timely basis. The existence of one or more material weaknesses precludes a conclusion by management that a company's disclosure controls and procedures and internal control over financial reporting are effective. In addition, the Audit Committee, the Board of Directors, and management have begun evaluating appropriate remediation actions. The Company's remediation plans and changes to internal control over financial reporting will be disclosed in its future periodic filings. About TD Holdings Headquartered in Beijing, People's Republic of China, TD Holdings, Inc., (formerly known as Bat Group, Inc.) has become a used luxurious car leasing business as well as a commodities trading business operating in China since the disposition of its direct loans, loan guarantees and financial leasing services to small-to-medium sized businesses, farmers and individuals in July 2018. The Company's current operations consist of leasing of luxurious pre-owned automobiles and operation of a non-ferrous metal commodities trading business. For the year ended Dec. 31, 2019, the Company incurred net loss from continuing operations of approximately $6.94 million, and reported cash outflows of approximately $2.17 million from operating activities. The Company said these factors caused concern as to its liquidity as of Dec. 31, 2019. ========= I N D I A ========= ANUNDAN PROPERTIES: Insolvency Resolution Process Case Summary -------------------------------------------------------------- Debtor: Anundan Properties Private Limited 3rd Floor, Building No. R2 Rajmudra CHS Ramchandra Nagar No. 2 Kamgar Hospital Road Thane 400604 Insolvency Commencement Date: March 15, 2021 Court: National Company Law Tribunal, Mumbai Bench Estimated date of closure of insolvency resolution process: September 22, 2021 (180 days from commencement) Insolvency professional: Jayesh Natvarlal Sanghrajka Interim Resolution Professional: Jayesh Natvarlal Sanghrajka C/o Jayesh Sanghrajka & Co. LLP 405-407, Hind Rajasthan Building 95, Dada Saheb Phalke Road Dadar East, Mumbai 400014 Maharashtra, India E-mail: jayesh@jsandco.in cirp.anundan@gmail.com Classes of creditors: Allottees under a Real Estate Project as per clause (f) of section 5(8) Insolvency Professionals Representative of Creditors in a class: Mr. Hemant Mehta Mr. Vithal M. Dahake Ms. Hetal Kothari Last date for submission of claims: April 9, 2021 BANSAL IRON: ICRA Keeps B+ Debt Rating in Not Cooperating --------------------------------------------------------- ICRA has retained the ratings for the bank facilities of Bansal Iron & Steel Rolling Mills in the 'Issuer Not Cooperating' category. The rating is denoted as [ICRA] B+(Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based 9.00 [ICRA]B+(Stable); ISSUER NOT Limits-Cash COOPERATING; Rating continues Credit to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/ limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. BISRM is a partnership firm engaged in the rolling of steel ingots into girders and channels. The firm was promoted by members of the Bansal family in 1971 and its manufacturing facility is located in Mandi Gobindgarh (Punjab) with an installed capacity of 39,000 metric tonnes per annum. BESTO MINING: ICRA Keeps B+ Debt Ratings in Not Cooperating ----------------------------------------------------------- ICRA has retained the ratings for the bank facilities of Besto Mining India Private Limited in the 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]B+(Stable) ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 2.50 [ICRA]B+(stable); ISSUER NOT Fund Based/CC COOPERATING; Rating continues to remain under the 'Issuer Not Cooperating' category Long Term- 13.53 [ICRA]B+(stable); ISSUER NOT Fund Based TL COOPERATING; Rating continues to remain under the 'Issuer Not Cooperating' category Long Term– 3.07 [ICRA]B+(stable); ISSUER NOT Unallocated COOPERATING; Rating continues to remain under the 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Besto Mining (India) Private Ltd. (BMPL) was incorporated as private concern by Mr. Manoj Shetty, Mr. Roy Kurian, Mr. Alex PJ and Mr. Vincent Joseph in 2014. The company produces M (Manufactured) Sand & Aggregate from its 5 stage 300 tonnes per day (tpd) plant located at Yalganhalli village in Chikballapur district (Bangalore). BHASKARA MARKETING: ICRA Keeps B+ Debt Rating in Not Cooperating ---------------------------------------------------------------- ICRA has retained the ratings for the bank facilities of Bhaskara Marketing Services (BMS) in the 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]B(Stable) ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 6.00 [ICRA]B+(stable); ISSUER NOT Fund Based- COOPERATING; Rating continues Cash Credit to remain under the 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Bhaskara Marketing Services (BMS), established in the year 2001, is engaged in the trading of Aqua feed (Prawn feed). It is a partnership firm promoted by Mr. D. Veerabhadra Reddy & Smt. D. Madhuri Latha. The firm has 3 branches in East Godavari District, Andhra Pradesh. One of the branches is located in Kakinada town and the other two branches are at Amalapuram and Pithapuram respectively. C.I. BUILDERS: CRISIL Migrates B- Debt Ratings to Not Cooperating ----------------------------------------------------------------- CRISIL Ratings has migrated the rating on bank facilities of C.I. Builders Private Limited (CI) to 'CRISIL B-/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Mortgage Loan 6.44 CRISIL B-/Stable (ISSUER NOT Facility COOPERATING; Rating Migrated) Overdraft 17.50 CRISIL B-/Stable (ISSUER NOT Facility COOPERATING; Rating Migrated) Proposed Long 10.00 CRISIL B-/Stable (ISSUER NOT Term Bank COOPERATING; Rating Migrated) Loan Facility CRISIL Ratings has been consistently following up with CI for obtaining information through letters and emails dated February 27, 2021, March 9, 2021 and March 15, 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 CI, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on CI is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of CI to 'CRISIL B-/Stable Issuer not cooperating'. CI, incorporated in 1998, undertakes real estate projects in Bhopal. Mr Rakesh Malik and his family are the promoters. DHURIA RICE: ICRA Keeps B Debt Rating in Not Cooperating -------------------------------------------------------- ICRA has retained the ratings for the bank facilities of Dhuria Rice Mills in the 'Issuer Not Cooperating' category. The rating is denoted as [ICRA] B(Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based- 7.50 [ICRA]B(Stable); ISSUER NOT Cash Credit COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. DRM was established in the year 1978 as a partnership firm with Ashok Kumar, Krishna Devi and Surinder Kumar as partners. In the year 2007 partnership was re constituted with Mr. Arun Kumar, Mr. Ashok Kumar and Krishna Devi as partners. In 2012 the partnership firm was reconstituted again with Mr. Ashok Kumar and Mr. Arun Kumar as partners in equal ratios. All the partners are actively engaged in the management of the company. DRM is engaged in processing and trading of non-basmati rice in the domestic markets and to exporters in India. Head office as well as the manufacturing plant of the company is located at Fazilka, Punjab. The plant has a milling capacity of 2 tonnes per hour of paddy. ECO HEALTH: CRISIL Migrates B Debt Ratings to Not Cooperating ------------------------------------------------------------- CRISIL Ratings has migrated the rating on bank facilities of Eco Health Products Private Limited (EHPPL) to 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 1 CRISIL B/Stable ((ISSUER NOT COOPERATING; Rating Migrated) Proposed Long Term 4 CRISIL B/Stable ((ISSUER NOT Bank Loan Facility COOPERATING; Rating Migrated) CRISIL Ratings has been consistently following up with EHPPL for obtaining information through letters and emails dated March 9, 2021 and March 15, 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 EHPPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on EHPPL is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of EHPPL to 'CRISIL B/Stable Issuer not cooperating'. EHPPL was incorporated in 2008. It is owned & managed by Mr. K P Sunil (Chairman & Managing Director) and is engaged in manufacturing of herbal based (organic) reagents for diverse industrial application i.e., water treatment & pollution mitigants, agricultural development & health. GSH FACILITIES MANAGEMENT: Insolvency Resolution Case Summary ------------------------------------------------------------- Debtor: M/s. GSH Facilites Management Services Private Limited New No. 14, Old No. 20 Thiru-Vi-Ka IIIrd Street Royapetta High Road Mylapore, Chennai 600004 Insolvency Commencement Date: February 22, 2021 Court: National Company Law Tribunal, Coimbatore Bench Estimated date of closure of insolvency resolution process: August 19, 2021 (180 days from commencement) Insolvency professional: CA Pudukkarai Srinivasan Sitaram Interim Resolution Professional: CA Pudukkarai Srinivasan Sitaram 77, Ponnurangam Road (West) R.S. Puram, Coimbatore 641002 E-mail: pssitaram@gmail.com Last date for submission of claims: April 11, 2021 INSPAN INFOTECH: Insolvency Resolution Process Case Summary ----------------------------------------------------------- Debtor: Inspan Infotech Private Limited 278/5, 1st Floor OMR Main Road Opp to Thiruporur Main Bus Stand Kancheepuram Dist., Tamil Nadu Pin Code 603110 Insolvency Commencement Date: March 22, 2021 Court: National Company Law Tribunal, Chennai Bench Estimated date of closure of insolvency resolution process: September 18, 2021 Insolvency professional: V Senthilkumar Interim Resolution Professional: V Senthilkumar 171, 5th Street Murugu Nagar, Velachery Chennai 600042 Tel: 9444043673 E-mail: vsenthilkumar1993@gmail.com irp.inspan@gmail.com Last date for submission of claims: April 14, 2021 JAK ASSOCIATES: ICRA Keeps B+ Debt Ratings in Not Cooperating ------------------------------------------------------------- ICRA has retained the ratings for the bank facilities of Jak Associates in the 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]B+(Stable) ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 2.46 [ICRA]B+(stable); ISSUER NOT Fund Based- COOPERATING; Rating continues to remain under the 'Issuer Not Cooperating' category Long Term- 1.00 [ICRA]B+(stable); ISSUER NOT Non-Fund COOPERATING; Rating continues Based to remain under the 'Issuer Not Cooperating' category Long Term- 3.54 [ICRA]B+(stable); ISSUER NOT Unallocated COOPERATING; Rating continues Facilities to remain under the 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. JAK Associates is a partnership firm established in 2008. The firm runs a 4-star hotel property in Domlur, Bangalore under the brand 'Ramada Encore'. The firm is promoted by Mr. A.N Raju, Mrs. Kamalamma, Mr. A.S.N. Raju, Mrs. J. Sridevi, Mr. J. Krishna Chaitanya and Mr. J.S.R. Raju. The latter four partners are members of the founder family of NCC Limited (formerly Nagarjuna Construction Company Limited). The hotel is a G+7 structure, spread over a land area of ~16,700 sft and having a built-up area of ~5,600 0sft. The hotel has a franchisee agreement with Ramada International Inc. for 15 years. Ramada Encore has an inventory of 88 rooms, one restaurant, a bar, a lobby lounge, a conference room and a gym. The hotel is operational since April 2014. KAMALA BOARD: ICRA Keeps B+ Debt Ratings in Not Cooperating ----------------------------------------------------------- ICRA has retained the ratings for the bank facilities of Kamala Board Box Pvt. Ltd. in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA] B+(Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based 1.15 [ICRA]B+(Stable); ISSUER NOT limits- COOPERATING; Rating continues Term Loan to remain under 'Issuer Not Cooperating' category Fund Based 6.85 [ICRA]B+(Stable); ISSUER NOT Limit- COOPERATING; Rating continues Cash credit to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Kamala Board Box Private Limited (KBBPL) manufactures corrugated boxes and offset-printed duplex board cartons at its facility in Barasat, West Bengal, with an annual installed capacity of 12,000 metric tonnes (MT). Promoted by the Kolkata-based Das family, the entity was set up in 1984 as a proprietorship concern, Kamala Board Box, and was converted into a private limited company in 2006. The promoters have an experience of more than three decades in the packaging industry. KEVA IMPEX: CRISIL Keeps B+ Debt Rating in Not Cooperating ---------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Keva Impex continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit/ 7 CRISIL B+/Stable (Issuer Not Overdraft Cooperating) facility CRISIL Ratings has been consistently following up with Keva for obtaining information through letters and emails dated August 22, 2020 and February 16, 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 Keva, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on Keva is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of Keva continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. Based in Raipur and set up in 2012, Keva is a proprietorship firm of Mr Ravi Patel. The firm trades in iron and steel products. It also trades in timber; however, over 90% of the revenue is contributed from the iron and steel trading activity. KRISHNA GINNING: CRISIL Keeps B+ Debt Rating in Not Cooperating --------------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Krishna Ginning And Pressing Factory (KGPF) continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5.3 CRISIL B+/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with KGPF for obtaining information through letters and emails dated August 22, 2020 and February 16, 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 KGPF, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on KGPF is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of KGPF continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. KGPF, based in Bhavnagar (Gujarat), was founded in 2006 by the Patel family. The firm gins and presses cotton bales with a capacity of 200 bales of cotton per day. MA SARADA: ICRA Keeps D Debt Ratings in Not Cooperating Category ---------------------------------------------------------------- ICRA has retained the ratings for the bank facilities of Ma Sarada Cold Storage Private Limited. in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA] D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based 4.01 [ICRA]D; ISSUER NOT COOPERATING; Limits Term Rating continues to remain under Loan 'Issuer Not Cooperating' Category Fund Based 0.80 [ICRA]D; ISSUER NOT COOPERATING; Limit Working Rating continues to remain under Capital 'Issuer Not Cooperating' Category Fund Based 0.75 [ICRA]D; ISSUER NOT COOPERATING; Limit seasonal Rating continues to remain under cash credit 'Issuer Not Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Incorporated in 1987, Ma Sarada Cold Storage Private Limited is engaged in providing cold storage facility to potato farmers and traders on a rental basis. The facility of the company is located in Bankura district of West Bengal having an annual storage capacity of 21,052 metric tons. MAA SHEETLA: ICRA Keeps B+ Debt Rating in Not Cooperating --------------------------------------------------------- ICRA has retained the ratings for the bank facilities of Maa Sheetla Industries Private Limited in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA] B+(Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 6.50 [ICRA]B+(stable); ISSUER NOT Fund Based- COOPERATING; Rating continues to remain under the 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. MSIPL was incorporated in March 2014 and is engaged in the distribution of IMFL and beer in Uttarakhand. The company has two warehouses in Uttarakhand, in Haldwani and Rudrapur. MSIPL has two other group companies, Maa Sheetla Autowheels Private Limited (having dealership of Volkswagen) and BTC Industries Limited (engaged in manufacturing of Thermo Mechanically Treated bars). MAAVE ELECTRONICS: Insolvency Resolution Process Case Summary ------------------------------------------------------------- Debtor: Maave Electronics Private Limited Plot No. 192/B, IIRd Floor IDA Phase II, Cherlapally Hyderabad TG 500051 Insolvency Commencement Date: March 30, 2021 Court: National Company Law Tribunal, Hyderabad Bench Estimated date of closure of insolvency resolution process: September 26, 2021 Insolvency professional: Chakravarthi Srinivasan Interim Resolution Professional: Chakravarthi Srinivasan 1-4-211/42/1, Pradhamapuri Colony Sainikpuri, Hyderabad 500062 E-mail: csriniirp@gmail.com Last date for submission of claims: April 13, 2021 MOTOR WORLD: CRISIL Lowers Rating on INR18cr Loan to B ------------------------------------------------------ CRISIL Ratings has revised the ratings on bank facilities of Motor World Private Limited (MWPL) to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL B/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB+/Stable ISSUER NOT COOPERATING) Inventory 18 CRISIL B/Stable (ISSUER NOT Funding Facility COOPERATING; Revised from 'CRISIL BB+/Stable ISSUER NOT COOPERATING) Long Term Loan 17 CRISIL B/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB+/Stable ISSUER NOT COOPERATING) CRISIL Ratings has been consistently following up with MWPL for obtaining information through letters and emails dated August 22, 2020 and February 16, 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 MWPL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on MWPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of MWPL Revised to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB+/Stable Issuer Not Cooperating'. Incorporated in 2001, MWPL, promoted by Mr Saju Thomas, is an authorized dealer of Toyota passenger cars. NARAYANI STEELS: Insolvency Resolution Process Case Summary ----------------------------------------------------------- Debtor: Narayani Steels Limited 23A, N.S. Road 7th Floor, Room No. 31 Kolkata, West Bengal 700001 Insolvency Commencement Date: March 24, 2021 Court: National Company Law Tribunal, Hyderabad Bench Estimated date of closure of insolvency resolution process: September 19, 2021 Insolvency professional: Krishna Komaravolu Interim Resolution Professional: Krishna Komaravolu House No. 7-1-214, Flat No. 409 Vamsikrishna Apartments Dharam Karan Road, Ameerpet Hyderabad 500016 E-mail: kkvolu@gmail.com irp.nsl@gmail.com Last date for submission of claims: April 7, 2021 NAVEEN FILTERS: CRISIL Reaffirms B+ Rating on INR6.0cr Cash Loan ---------------------------------------------------------------- CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable' rating on the long-term bank facilities of Naveen Filters Private Limited (NFPL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6 CRISIL B+/Stable (Reaffirmed) Long Term Loan 0.31 CRISIL B+/Stable (Reaffirmed) Non-Fund Based Limit 2.50 CRISIL B+/Stable (Reaffirmed) The rating continues to reflect the company's modest scale of operations amid intense competition and large working capital requirement. These weaknesses are partially offset by the extensive experience of the promoters in the automotive (auto) filter industry, healthy relationships with reputed customers and moderate financial risk profile. Key Rating Drivers & Detailed Description Weaknesses: * Modest scale of operations: Despite presence of over 40 years, the scale of operations has remained small, as reflected in revenue of INR45.41 crore in fiscal 2020. Revenue is expected to decline to INR38 crores in fiscal 2021, due to delay in approval for BS-VI engines, because of the ongoing pandemic. Operating margin was low at 2.6% in fiscal 2020, which is expected to marginally decline in the current fiscal, however, in the medium term it is expected to remain in the 2.5-3% level. Intense competition will continue to constrain the scalability and bargaining power over the medium term. * Large working capital requirement: Gross current assets were 166 days as on March 31, 2020 and 145 days estimated for fiscal 2021, on account of inventory and receivables of 30-40 days and 70-90 days, respectively. The company provides credit of three months. It is expected that working capital operation will remain stretched over the medium term, on account of an elongated payments cycle in the automotive industry. Strengths: * Extensive experience of the promoters, and established relationships with reputed clientele: The promoters have experience of over four decades in manufacturing filters. Over the years, they have forged healthy relationships with customers and suppliers. The company has longstanding association with its clients including Mahindra & Mahindra Ltd (19 years), Tata Motors Ltd (21 years), TVS Motor Company Ltd (8 years) and Ashok Leyland Ltd (6 years). This is expected to continue to support the business, with the company's entrance to the BS VI segment of engines. * Moderate financial risk profile: Gearing was high at 1.18 times as on March 31, 2020, and is expected at 1.19 times a year later. Gearing should decline with gradual repayment of debt obligation and moderate accretion to reserve. Debt protection metrics were comfortable on account of low finance cost, and the same is estimated at 2.81 times in fiscal 2021 and at 4-4.5 times over the medium term. Net cash accrual to adjusted debt ratio is expected at 0.10 time in fiscal 2021. Liquidity: Stretched Bank limit utilization was low at 39% on average over the 12 months through December 2020. Cash accrual, expected above INR1 crore per fiscal, will just about cover yearly term debt obligation over the medium term. Current ratio is expected to be low at 0.84 time as of March 31, 2021. Cash and bank balance stood at INR6.6 crore as on March 31, 2020. The company had not availed moratorium. Outlook: Stable CRISIL Ratings believes NFPL will continue to benefit from the extensive experience of the promoters and established relationships with customers. Rating Sensitivity factors Upward factors * Increase in revenue to INR60 crore or above and stable profitability, leading to cash accrual of more than INR2 crore * Improvement in the financial risk profile due to deleveraging Downward factors * Decline in net cash accrual to INR70 lakh or below due to decrease in revenue or profitability * Weakening of the financial risk profile due to further leveraging NFPL was set up by Mr B D Kataria as a proprietary concern, Naveen Filter Industries, in 1979; it was reconstituted as a private limited company with the current name in 2005. The company manufactures oil, gas and air filters, which are used in the auto industry. It has manufacturing units at Baddi in Himachal Pradesh, Swaroop Nagar in New Delhi and Rai in Haryana. It is certified by the Association of State Road Transport Undertakings. NEERUS ENSEMBLES: ICRA Keeps B+ Debt Ratings in Not Cooperating --------------------------------------------------------------- ICRA has retained the ratings for the bank facilities of Neerus Ensembles Private Limited in the 'Issuer Not Cooperating' category. The rating is denoted as [ICRA] B+(Stable)/A4; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash credit 28.00 [ICRA]B+(Stable); ISSUER NOT COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Term Loan 6.84 [ICRA]B+(Stable); ISSUER NOT COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Unallocated 0.16 [ICRA]B+(Stable)/A4; ISSUER NOT COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Neerus Ensembles Private Limited (NEPL) was incorporated as a private limited company in the year 2005. Prior to this, it functioned as a partnership firm since 1979. The company is involved in the retailing of textile including women's wear, men's wear and kid's wear under the brand name "Neerus". NEPL focuses primarily on Sarees and Dress materials both stitched and unstitched. NEPL has 21 stand-alone stores as on date in Telangana, Andhra Pradesh, Karnataka and other states. Further, NEPL shares its presence with multi brand retail stores in India-Future Group's "CENTRAL", LANDMARK Group's "LIFESTYLE". As on date, NEPL has presence in 12 CENTRAL and 3 LIFESTYLE stores across India. OYO HOTELS: In Insolvency Process; Claims Due on April 15 --------------------------------------------------------- BloombergQuint reports that the National Company Law Tribunal has ordered the commencement of a corporate insolvency resolution process of OYO Hotels and Homes Pvt., according to a public announcement posted on the IBBI website. BloombergQuint relates that an OYO spokesperson said the proceedings are a result of a contractual dispute. It has filed an appeal, the spokesperson said in an emailed statement. BloombergQuint relates that the public announcement stated: * The NCLT has ordered the commencement of insolvency proceedings for OYO Hotels and Homes with effect April 1. * As per standard process, creditors have been called upon to submit claims with proof. * The last date for submission of claims is April 15. * The interim resolution professional appointed is Keyur Shah. The applicant for the filing is Rakesh Yadav, according to information on the website of the Insolvency and Bankruptcy Board of India, BloombergQuint discloses. No other details are currently available on the applicant or the reasons for the filing, BloombergQuint notes. The OYO spokesperson said the case is a contractual dispute of Rs 16 lakh against the subsidiary. "We are surprised to hear that the Hon'ble NCLT has admitted a petition against OHHPL a subsidiary of OYO for Rs 16 Lakhs in a contractual dispute, which dispute is not even with this subsidiary. We have filed an appeal. The matter is sub-judice and we would refrain from commenting further on the merits of the matter at this stage. We have strong faith and belief in our judicial system," BloombergQuint quotes an OYO Spokesperson as saying. According to BloombergQuint, OYO founder Ritesh Agarwal took to social media to clarify rumours that the company had filed for insolvency. OYO Hotels and Homes offers rooms and homes across 800 cities. OYO HOTELS: Insolvency Resolution Process Case Summary ------------------------------------------------------ Debtor: M/s. OYO Hotels and Homes Private Limited Ground Floor-001, Mauryansh Elanza Shyamal Cross Road Nr. Parekh Hospital Satelite, Ahmedabad Gujarat 380015 India Insolvency Commencement Date: April 1, 2021 Court: National Company Law Tribunal, Ahmedabad Bench Estimated date of closure of insolvency resolution process: September 27, 2021 Insolvency professional: Mr. Keyur Jagdishbhai Shah Interim Resolution Professional: Mr. Keyur Jagdishbhai Shah 1007, Sun Avenue One Near Shreyas Foundation Manekbaug Society Ambawadi, Ahmedabad Gujarat 380015 E-mail: cs.keyursah@gmail.com cirp.oyohotels@gmail.com Last date for submission of claims: April 15, 2021 POPULAR SHOE: ICRA Keeps B+ Debt Rating in Not Cooperating ---------------------------------------------------------- ICRA has retained the ratings for the bank facilities of Popular Shoe Mart in the 'Issuer Not Cooperating' category. The rating is denoted as [ICRA] B+(Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 12.00 [ICRA]B+(Stable); ISSUER NOT COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Popular Shoe Mart – 1 (PSM) was established in the year 1962 as a partnership firm by Mr. Chukkapalli Pitchaiah. It is engaged in retailing of footwear through 119 stores with total retail space of 1.1 lakh sq. ft. spread across the states of Andhra Pradesh, Telangana and Karnataka. The firm is currently being managed by two of the founder's sons – Mr. Ch. Arun Kumar and Mr. Ch. Vijaya Kumar. PRAYOSHA HEALTHCARE: CRISIL Lowers Rating on INR8.0cr Loans to B ---------------------------------------------------------------- CRISIL Ratings has revised the ratings on bank facilities of Prayosha Healthcare Private Limited (PHPL) to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4.0 CRISIL B/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB+/Stable ISSUER NOT COOPERATING') Long Term Loan 0.5 CRISIL B/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB+/Stable ISSUER NOT COOPERATING') Rupee Term Loan 3.5 CRISIL B/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB+/Stable ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with PHPL for obtaining information through letters and emails dated January 30, 2021 and February 27, 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 PHPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on PHPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of PHPL Revised to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB+/Stable Issuer Not Cooperating'. PHPL was incorporated in 2005, promoted by Mr. R.M. Patel, Mr. Tushar Patel and Ms. Chetnaben Patel. The company, based in Ankleshwar, Gujarat, is into manufacturing of Active Pharmaceutical Ingredient (API). RAM COTTEX: ICRA Keeps B Debt Rating in Not Cooperating Category ---------------------------------------------------------------- ICRA has retained the ratings for the bank facilities of Shree Ram Cottex Industries Private Limited in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]B (Stable) ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based 30.00 [ICRA]B (Stable); ISSUER NOT Cash Credit COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Shree Ram Cotton Industries was established in 2006 by Mr. Chandu Vasoya along with three other partners; however, the partnership firm was reconstituted in November 2011 and subsequently in April 2012, Mr. Ramnik along with two other partners took over the management. Later in July 2013 there was a reconstitution of the partnership firm and its name was changed to "Shree Ram Cottex Industries". In September 2013, the partnership firm was converted into private limited company – 'Shree Ram Cottex Industries Private Limited' (SRCIPL). SRCIPL is engaged in cotton ginning and pressing to produce cotton bales and cotton seeds. The manufacturing plant of the company is located at Gondal in Rajkot, Gujarat. REAL ASSAM: CRISIL Lowers Rating on INR5cr Cash Loan to B --------------------------------------------------------- CRISIL Ratings has revised the ratings on bank facilities of Real Assam Tea Industries (RATI) to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB-/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL B/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB-/Stable ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with RATI for obtaining information through letters and emails dated August 22, 2020 and February 16, 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 RATI, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on RATI is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of RATI Revised to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB-/Stable Issuer Not Cooperating'. Set up in 1997 and promoted by, Mr. Lekhak Koch.RATI processes tea in Dibrugarh, Assam. It has a processing capacity of 3 lakh kilogram per annum. RHG CONSTRUCTIONS: CRISIL Moves B+ Debt Rating to Not Cooperating ----------------------------------------------------------------- CRISIL Ratings has migrated the rating on bank facilities of RHG Constructions (RHGC) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Working 14 CRISIL B+/Stable (ISSUER NOT Capital Facility COOPERATING; Rating Migrated) CRISIL Ratings has been consistently following up with RHGC for obtaining information through letters and emails dated December 23, 2020 and January 29, 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 RHGC, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on RHGC is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of RHGC to 'CRISIL B+/Stable Issuer not cooperating'. Established in 1998 as a partnership firm, Punjab-based RHGC is engaged in civil construction works, such as construction of group housing, commercial buildings, institutional buildings, government projects, and other infrastructure projects Mr Rajesh Gupta and Mr Harish Gupta are partners in the firm. RIDDHI SIDDHI: CRISIL Keeps B+ Debt Rating in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Shree Riddhi Siddhi Buildwell Limited (SRSBL) continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 50 CRISIL B+/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SRSBL for obtaining information through letters and emails dated August 22, 2020 and February 16, 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 SRSBL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SRSBL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SRSBL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. SRSBL was established in 2010, promoted by Mr P K Jain and Mr Anuj Jain for developing real estate projects. The company is currently executing three residential projects (Padam Pride I, Padam Pride II, and Padam Eternity I) in Agra. These projects comprise residential blocks with 315 flats in a mix of three-BHK (bedroom, hall, and kitchen) and four-BHK flats. ROHIT FABTEX: ICRA Keeps B+ Debt Rating in Not Cooperating ---------------------------------------------------------- ICRA has retained the ratings for the bank facilities of Rohit Fabtex in the 'Issuer Not Cooperating' category. The rating is denoted as [ICRA] B+(Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 9.70 [ICRA]B+(stable); ISSUER NOT Fund Based- COOPERATING; Rating continues to remain under the 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Rohit Fabtex was established as a proprietorship firm in 2010 by Mr. Kishorilal Singhvi to carry out processing of fabric. The unit of the firm at Balotra, has an installed capacity of ~40,000 meters per day, to produce poplin fabric. RUDRA FLOUR: CRISIL Moves B+ Debt Ratings to Not Cooperating ------------------------------------------------------------ CRISIL Ratings has migrated the rating on bank facilities of Rudra Flour Mills (RFM) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 2.0 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Proposed Long Term 3.5 CRISIL B+/Stable (ISSUER NOT Bank Loan Facility COOPERATING; Rating Migrated) Term Loan 0.5 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL Ratings has been consistently following up with RFM for obtaining information through letters and emails dated December 23, 2020 and January 29, 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 RFM, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on RFM is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of RFM to 'CRISIL B+/Stable Issuer not cooperating'. Established in 2014 and promoted Mr Vishal Singh Charak and Mr Balraj Singh Charak, RFM processes wheat into atta, maida, sooji, and related products. Its manufacturing unit is in Samba district of Jammu & Kashmir and has capacity of 12,000 quintal per month. SARATHA ELECTRO: CRISIL Lowers Rating on INR3.62cr Loan to B ------------------------------------------------------------ CRISIL Ratings has revised the ratings on bank facilities of Saratha Electro Plater (SEP) to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB-/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Term Loan 3.62 CRISIL B/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB-/Stable ISSUER NOT COOPERATING') Proposed Term Loan 1.06 CRISIL B/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB-/Stable ISSUER NOT COOPERATING') Cash Credit/ 1.50 CRISIL B/Stable (ISSUER NOT Overdraft facility COOPERATING; Revised from 'CRISIL BB-/Stable ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with SEP for obtaining information through letters and emails dated August 22, 2020 and February 16, 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 SEP, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SEP is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SEP Revised to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB-/Stable Issuer Not Cooperating'. Established in 1998, SEP carries out electroplating works for Tier-1 suppliers of automobile original equipment manufacturers. The firm is promoted by Mr K Mahadevan. SELECT CORPORATION: First Creditors' Meeting Set for April 14 ------------------------------------------------------------- A first meeting of the creditors in the proceedings of Select Corporation Pty Ltd Formerly Trading As "Select Residential Solutions" and in its own right as Trustee for Select Investment Trust will be held on April 14, 2021, at 11:30 a.m. at the offices of WA Insolvency Solutions, Suite 6.02, Level 6, 109 St Georges Terrace, in Perth, WA. David Ashley Norman Hurt and Jimmy Trpcevski of WA Insolvency Solutions were appointed as administrators of Select Corporation on March 31, 2021. SESHA SAILA: Insolvency Resolution Process Case Summary ------------------------------------------------------- Debtor: M/s Sesha Saila Power and Engineering Private Limited Plot No. 16, R & D Difence Enclave Sikh Village, Secunderabad Hyderabad TG 500003 IN Insolvency Commencement Date: March 26, 2021 Court: National Company Law Tribunal, Hyderabad Bench Estimated date of closure of insolvency resolution process: September 22, 2021 Insolvency professional: Gonugunta Murali Interim Resolution Professional: Gonugunta Murali H.No. 16-11-19/4, G-1 Sri Laxmi Nilayam Saleem Nagar Colony Malakpet, Hyderabad Telangana 500036 E-mail: gmurali34@gmail.com speltd@gmail.com Last date for submission of claims: April 14, 2021 SONA PROCESSORS: ICRA Keeps B+ Debt Ratings in Not Cooperating -------------------------------------------------------------- ICRA has retained the ratings for the bank facilities of Sona Processors (India) Limited in the 'Issuer Not Cooperating' category. The rating is denoted as [ICRA] B+(Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 19.47 [ICRA]B+(stable); ISSUER NOT Fund Based/TL COOPERATING; Rating continues to remain under the 'Issuer Not Cooperating' category Long Term- 8.00 [ICRA]B+(stable); ISSUER NOT Fund Based/CC COOPERATING; Rating continues to remain under the 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Incorporated in 1994, Sona Processors (India) Limited (SPIL) is a Bhilwara (Rajasthan) based fabric processing house having an installed processing capacity of about 400 lac meter fabric per annum. In addition to the fabric processing business, the company has also invested in a 1.6 MW wind turbine generator, which is installed in Jaisalmer, Rajasthan. SUDHA SESAMUM: ICRA Keeps B+ Debt Ratings in Not Cooperating ------------------------------------------------------------ ICRA has retained the ratings for the bank facilities of Sri Sudha Sesamum Agro Foods and Exports Private Limited. in the 'Issuer Not Cooperating' category. The rating is denoted as [ICRA] B+(Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loan 0.04 [ICRA]B+(Stable); ISSUER NOT COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Cash Credit 12.00 [ICRA]B+(Stable); ISSUER NOT COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Unallocated 0.96 [ICRA]B+(Stable); ISSUER NOT COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Sri Sudha Sesamum Agro Foods and Exports Private Limited (SSS) was incorporated in the year 2010 and commenced operations in Q2 of fiscal year 2012. The company is engaged in manufacture and sales of mechanically-hulled autodried optically-sorted Sesame Seeds in Andhra Pradesh, Tamil Nadu and to countries such as Malaysia, Taiwan and Indonesia. The facility is in Tadepalligudam – 50 Km from Rajahmundry in Andhra Pradesh. The annual production capacity is 6900 MT. SYNERGY COSMETICS: Insolvency Resolution Process Case Summary ------------------------------------------------------------- Debtor: Synergy Cosmetics (Exim) Limited 806, Saffron Building Panchwati to Ambawadi Road Ambawadi, Ahmedabad GJ 380006 IN Insolvency Commencement Date: March 22, 2021 Court: National Company Law Tribunal, Mumbai Bench Estimated date of closure of insolvency resolution process: September 18, 2021 Insolvency professional: Ms. Dipti Mehta Interim Resolution Professional: Ms. Dipti Mehta 201-206, Shiv Smriti Chambers Above Corporation Bank Worli, Mumbai 400018 E-mail: dipti@mehta-mehta.com Last date for submission of claims: April 8, 2021 TATA STEEL: S&P Hikes ICR to 'BB-' on Deleveraging, Outlook Stable ------------------------------------------------------------------ S&P Global Ratings, on April 6, 2021, raised its issuer credit rating on Tata Steel Ltd. and its subsidiary ABJA Investment Co. Pte. Ltd. to 'BB-' from 'B+'. S&P also raised the long-term issue rating on the senior unsecured notes issued by its subsidiary ABJA Investment Co. Pte. Ltd. The stable outlook reflects S&P's expectation that Tata Steel will adequately deleverage over the next two years and build comfortable headroom at the current rating level. The benefits of strong cash flows and management's commitment to lower debt should help Tata Steel to materially deleverage over the next two years. S&P said, "We estimate our adjusted debt levels for Tata Steel will decline by about 30% by March 2023 from about INR1.1 trillion in March 2020. About half of this decline is expected to have been delivered in fiscal 2021 (year ended March 2021). Tata Steel has committed to reducing absolute debt levels by at least US$1 billion per year from fiscal 2022. Our base case shows that the company's free operating cash flows will be adequate to facilitate this reduction over the next two years, even with our revised capital expenditure (capex) estimates of about INR90 billion per year, up from INR50 billion-INR60 billion in fiscal 2021. We believe Tata Steel will moderate its investment plans, if required, so as to meet this objective. The company reported sizable debt reduction in fiscal 2021, thanks to stronger cash flow generation, recent equity raising of about INR33 billion, and working capital improvements of about INR120 billion. However, we treat as debt substitution some of Tata Steel's working capital-related debt reductions in fiscal 2021, such as INR60 billion in export advances and securitization of receivables at Tata Steel Europe (with a facility size of £475 million). This implies a comparatively lower level of deleveraging compared with the company's reported numbers." S&P said, "We expect strong operating momentum over the next 12-18 months to facilitate debt reduction. Tata Steel has guided to price increases of INR6,000-INR7,000 per ton in the fourth quarter of fiscal 2021, on the back of already high prices and margins in the third quarter. In the third quarter, the Indian operations reported average EBITDA/ton of about INR19,000, exceeding our mid-cycle estimate of about INR13,500-INR14,000. Consequently, we anticipate that the company can maintain strong operating momentum over the next couple of quarters at least. Our base case assumes moderation in steel prices over fiscals 2022 and 2023, such that the Indian operations' EBITDA/ton gradually will decline to about INR16,000 by fiscal 2023. In our view, steel prices could moderate over the next two to three years as output ramps up globally following disruptions due to COVID-19. Long product prices in India have already moderated following the resumption of smaller capacities. Under these assumptions, we estimate Tata Steel can generate aggregate EBITDA of more than INR600 billion and free operating cash flow of about INR150 billion over fiscals 2022 and 2023. "Volatility in earnings, and hence, credit metrics constrains a higher rating for now. We estimate Tata Steel's debt-to-EBITDA ratio will decline to 2.5x-3.0x in our base case by fiscal 2023 and the ratio of funds from operations (FFO) to debt should improve to 20%-25%, compared with our earlier estimates of 4.0x-4.5x and about 15%, respectively. A key risk to these estimates is the level of steel prices. If steel prices were to drop to mid-cycle levels by fiscal 2023, we estimate the company's FFO-to-debt ratio to be 15%-17%, and it has the potential to drop further to 13%-14% at the bottom of the cycle. We note the company's EBITDA in fiscal 2020 was about half our current estimates for fiscals 2021 and 2022, with a ratio of FFO-to-debt being 6%, indicating the extent of volatility seen lately. That said, material deleveraging has lowered downside rating risk, in our view. The likelihood is reducing that credit metrics will weaken to levels seen in previous downturns. "The stable outlook reflects our expectation that Tata Steel will significantly reduce debt over the next 12-24 months, supported by strong operational cash flow. The stable outlook also reflects our expectation that the company's debt reduction would result in lower volatility in its credit metrics compared with the previous steel cycle, with greater resilience during downturns. "In our base case, we see Tata Steel building adequate headroom at the current rating level. However, we could lower the rating if earnings decline or the company takes on additional debt, such that its FFO-to-debt ratio fails to remain well above 15% on a sustained basis. "We could raise the rating if Tata Steel deleverages beyond our expectations, such that we view the company's ratio of FFO to debt is likely to remain above 25% on a sustained basis. Factors contributing to this scenario include steel prices remaining stronger for longer than we now envisage. At current steel prices, the company's FFO-to-debt ratio may exceed the threshold of 25% over the next two years. However, its ability to maintain the ratio above 25% at mid cycle prices is less likely." VVG PAPER: CRISIL Reaffirms B+ Rating on INR26.75cr Loans --------------------------------------------------------- CRISIL Ratings has revised the ratings on certain bank facilities of V V G Paper Industry Pvt Ltd (VVG), as: Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 21.75 CRISIL B+/Stable (Reaffirmed) Working Capital Term Loan 5.00 CRISIL B+/Stable (Reaffirmed) CRISIL Ratings rating's on the long-term bank facility of VVG continues to reflect vulnerability to volatile raw material prices, cyclicality in the industrial paper industry and below-average financial risk profile. These weaknesses are partially offset by extensive experience of the promoters. CRISIL Ratings had on January 27, 2021, upgraded the rating on the long-term bank facility of VVG to 'CRISIL B+/Stable' from 'CRISIL B/Stable'. Analytical Approach Unsecured loans of INR4.94 crore, extended by the promoters as on March 31, 2020, have been treated as 75% equity and 25% debt, since these funds do not carry any interest, and are expected to be retained in the business. Key Rating Drivers & Detailed Description Weakness: * Vulnerability to volatile raw material prices and cyclicality in the industrial paper industry: Operating margin remains susceptible to volatile raw material (waste paper) prices, which are linked directly to international prices. Any adverse fluctuation in raw material prices can impact profitability. Kraft paper is used for tertiary packaging; thus, offtake depends on industrial production and other macroeconomic factors, such as gross domestic product growth and disposable income, due to their strong linkage with spending on consumer durables and fast-moving consumer goods. Steady demand is necessary to further ramp-up scale and earnings amid capacity expansion. * Below-average financial risk profile: Networth was small at around INR3.69 crore as on March 31, 2020 while gearing was high at 7.88 times. Going forward, with better accretions to reserves, the company is likely to improve its capital structure. Debt Protection metrics were negative in fiscal 2020 due to the initial stage of operation. However, with improved performance for this fiscal, the debt protection metrics are likely to improve Strengths: * Extensive experience of the promoters: The project is being promoted by the SR group, which has presence in various sectors such as cement and steel trading, construction and land development, and stone crushing. * Longstanding presence of the promoter in diversified operations should continue to support the business. Liquidity: Stretched Cash credit limit of INR6 crore was fully utilized and is expected to be enhanced to INR7.5 crore. Cash accrual, expected at INR1.75 crore and INR5 crore in fiscals 2021 and 2022, respectively, should cover debt obligation of INR1.57 crore and INR3.5 crore. A Covid loan of INR5.35 crore and unsecured loans from promoters of INR4.94 crore as on March 31, 2020 supports liquidity. Outlook Stable CRISIL Ratings believes VVG will continue to benefit from the extensive experience of its promoters. Rating Sensitivity factors Upward factors * Improvement in revenue and profitability leading to cash accrual of more than INR4.5 crore * Strengthening of the financial risk profile Downward factors * De-growth in revenue and profitability leading to lower cash accrual * Weakening of the interest coverage ratio to less than 1.5 times. VVG, incorporated in 2017, is a Hosur (Krishnagiri, Tamil Nadu)-based company that set up a plant to manufacture kraft paper. The plant commenced operations from November 2019. Ms G Neelima and Mr Dilip Kumar P are the promoters. ZENICA CARS: Insolvency Resolution Process Case Summary ------------------------------------------------------- Debtor: Zenica Cars India Private Limited Orchid Centre, Sector-53 Golf Course Road Gurgaon, Haryana 122001 Insolvency Commencement Date: March 22, 2021 Court: National Company Law Tribunal, Chandigarh Bench Estimated date of closure of insolvency resolution process: September 17, 2021 (180 days from commencement) Insolvency professional: Rajender Kumar Jain Interim Resolution Professional: Rajender Kumar Jain House no. 3698/1, First Floor Sector 46-C Chandigarh 160047 E-mail: amicusthe@gmail.com - and - SCO-818, 1st Floor NAC, Manimajra Chandigarh 160101 E-mail: zenicacarscirp@gmail.com Mobile: +91-73470-11150 Last date for submission of claims: April 7, 2021 [*] INDIA: Tests Water With Quicker Ready-Made Bankruptcy Process ----------------------------------------------------------------- Bijou George at Bloomberg News reports that India's move to allow smaller firms to use a more efficient bankruptcy filing system opens the door for the broader adoption of a process that may help the country to tackle one the world's worst bad debt problems. An executive order by the federal government on April 4 means that SMEs can now work out a resolution with creditors before they reach court, Bloomberg says. Market participants are pressuring authorities to allow larger companies to use this prepackaged system in order to speed up the process in India, where cases often languish for years. According to Bloomberg, the slow pace of helping troubled companies magnifies the challenges that Indian banks faces as they battle soured debt, especially amid a lingering credit crisis that claimed three lenders last year. The bad debt problem may grow as India grapples with the world's highest daily Covid-19 caseload, forcing curbs in its richest state, including in its commercial capital Mumbai. Bloomberg says the step toward a quicker process comes as India has recently allowed new bankruptcy filings, re-opening a key path for lenders to tackle bad debt, but threatening to flood the already overloaded court system with a wave of new insolvencies. ================= S I N G A P O R E ================= 3CNERGY: Auditors Raise Going Concern Doubt ------------------------------------------- The Business Times reports that auditors for investment-holding firm 3Cnergy, formerly known as HSR Global, have highlighted a material uncertainty related to the company's ability to continue as a going concern, according to an exchange filing on April 6. According to BT, Mazars LLP, the company's independent auditors, noted that 3Cnergy's current liabilities exceeded its current assets by nearly SGD18.9 million as at Dec. 31, 2020. In addition, the group incurred a net loss of SGD7.04 million and net operating cash outflows of almost SGD3.17 million for financial year 2020, BT discloses. "These conditions indicate that a material uncertainty exists that may cast significant doubt on the group's ability to continue as a going concern," the auditors, as cited by BT, said. "The ability of the group to continue as a going concern is dependent on its ability to continue to obtain support from (the) bank and to receive continued financial support from its substantial shareholders to pay their debts as and when they fall due," they said, adding that their opinion is not modified." Another key audit matter relates to the recoverable amount of land held for property development, BT notes. As at Dec. 31, 2020, the carrying amount of the group's land held for property development amounted to SGD86.3 million, net of impairment loss of SGD71.1 million. This valuation was performed by an independent external valuer to estimate the recoverable amount of the land held for property development, according to the filing. BT adds that the auditors said they determined this to be a key audit matter due to the high level of judgment involved in estimating the value and the significance of the carrying amount of the land held for property development. 3Cnergy is controlled by Tong Kooi Ong, owner of news publication The Edge. AXINGTON INC: Now a Cash Company, Faces Risk of Delisting --------------------------------------------------------- The Business Times reports that Catalist-listed Axington Inc, the company linked to the Bellagraph Nova saga last year, is now a cash company and faces the risk of delisting if it does not acquire a new business within a year, the company said in an exchange filing on April 6. This comes after the company notified the Singapore Exchange Securities Trading (SGX-ST) on April 1 of its cash company status according to Catalist listing rules, given that it does not currently have any "revenue-generating business", according to the filing cited by BT. BT relates that the company also noted that it has until Aug. 30 to submit a resumption proposal, given that the trading of its shares had been suspended since Aug. 31, 2020. Failure to do so would also result in delisting. "The company wishes to remind shareholders that there is no assurance that the SGX-ST will resume the trading of the shares or that the company will be able to acquire a business that meets the SGX-ST's requirements for a new listing within the timeframe prescribed by the SGX-ST," said Axington. BT meanwhile reports that the company intends to hold its annual general meeting for the financial year ended Dec. 31, 2020 by July 22. The Malaysia-incorporated company clarified that it is allowed to do so, according to rules set by the Labuan Financial Services Authority, BT relays. Formerly a professional-services group, Axington has been mired in difficulty after Singaporean businessmen and cousins Nelson Loh and Terence Loh, co-founders of Bellagraph Nova (BN) Group, bought out the firm in July, according to BT. BT says the Loh cousins came under the spotlight for their business dealings after they announced plans to make a takeover bid for English football club Newcastle United. It was later revealed that BN Group's marketing materials had been doctored, among other inconsistencies. Axington Inc. provides integrated professional services. The Company offers tax advisory solutions and process outsourcing activities. Axington serves customers in Asia. EAGLE HOSPITALITY TRUST: DBS Will Unlikely Recover $25 Million -------------------------------------------------------------- Chanyaporn Chanjaroen of Bloomberg Law reports that DBS Group Holdings Ltd. said it's unlikely to see any residual value from its SGD34 million (US$25.3 million) aggregate equity exposure to Eagle Hospitality Trust, which together with its entities, has sought Chapter 11 bankruptcy protection. Singapore's largest lender acted as the sole financial adviser and issue manager, as well as one of the underwriters of Eagle Hospitality's initial share sale in 2019. DBS Trustee Ltd., its unit, is also the trustee of Eagle Hospitality Real Estate Investment Trust. Apart from the business collapse, Eagle Hospitality Trust's current and former directors and officers are also being investigated for potential breaches. About Eagle Hospitality Group Eagle Hospitality Trust -- https://eagleht.com/ -- is a hospitality stapled group comprising Eagle Hospitality Real Estate Investment Trust and Eagle Hospitality Business Trust. Based in Singapore, Eagle H-REIT is established with the principal investment strategy of investing on a long-term basis in a diversified portfolio of income-producing real estate, which is used primarily for hospitality or hospitality-related purposes as well as real estate-related assets in connection with the foregoing, with an initial focus on the United States. EHT US1, Inc. and 26 affiliates, including 15 LLC entities that each owns hotels in the U.S., sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 21-10036) on Jan. 18, 2021. EHT US1 estimated $500 million to $1 billion in assets and liabilities as of the bankruptcy filing. The Debtors tapped Paul Hastings LLP and Cole Schotz P.C. as their bankruptcy counsel, FTI Consulting Inc. as restructuring advisor, and Moelis & Company LLC as investment banker. Rajah & Tann Singapore LLP and Walkers serve as Singapore Law counsel and Cayman Law counsel, respectively. Donlin, Recano & Company, Inc., is the claims agent. The U.S. Trustee for Regions 3 and 9 appointed an official committee of unsecured creditors in the Debtors' Chapter 11 cases on Feb. 4, 2021. The committee is represented by Morris James, LLP, and Kramer Levin Naftalis & Frankel, LLP. ********* 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 ***