/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/211008.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 Friday, October 8, 2021, Vol. 24, No. 196 Headlines A U S T R A L I A BUILT BY GUILD: First Creditors' Meeting Set for Oct. 14 COCONUT BROTHERS: Second Creditors' Meeting Set for Oct. 15 FUSION COOLING: First Creditors' Meeting Set for Oct. 15 STERLING FIRST: Gov't. Accused of Turning its Back on Victims C H I N A CHINA EVERGRANDE: Backer to Go Private After Share Plunge TTM TECHNOLOGIES CHINA: Fitch Affirms 'BB' LT IDRs, Outlook Stable I N D I A ADITYA INFRA: CARE Keeps B- Debt Rating in Not Cooperating ADITYA TRADERS: CARE Lowers Rating on INR0.50cr LT Loan to B ALLETARE BUILDS: CARE Lowers Rating on INR10cr Loan to B BRAVO AGENCIES: CARE Keeps D Debt Ratings in Not Cooperating DABANG METAL: CARE Keeps D Debt Rating in Not Cooperating Category DEEP LUMBERS: CARE Keeps C Debt Rating in Not Cooperating EATAGE AGRO: CARE Assigns D Rating to INR15cr LT Loan EVERSHINE SOLVEX: CARE Keeps D Debt Rating in Not Cooperating GMR WARORA: CARE Lowers Rating on INR75cr NCD to D GURU GRANTH: CARE Keeps D Debt Rating in Not Cooperating HARROW EDUCATIONAL: CARE Keeps D Debt Rating in Not Cooperating HIMANSHU INDUSTRIES: CARE Keeps D Debt Rating in Not Cooperating HUHTAMAKI FOODSERVICE: CARE Keeps B- Rating in Not Cooperating HUMBLE HOSPITALITY: CARE Keeps D Debt Rating in Not Cooperating J.B. GOLD: CARE Keeps D Debt Rating in Not Cooperating Category JKR TECHNO ENGINEERS: Insolvency Resolution Process Case Summary KAIVAL POLYPLAST: CARE Lowers Rating on INR17.50cr Loan to B- PUNE BUILDTECH: CARE Keeps D Debt Rating in Not Cooperating R M ENTERPRISE: CARE Keeps D Debt Rating in Not Cooperating R. K. MARKETING: CARE Keeps B- Debt Rating in Not Cooperating RAC EXTRUSIONS: CARE Keeps B+ Debt Rating in Not Cooperating SAI SUDHA: CARE Keeps B+ Debt Rating in Not Cooperating Category SATYA SRINIVASA: CARE Keeps B- Debt Rating in Not Cooperating SINGLACHERRA TEA: CARE Keeps C Rating in Not Cooperating Category SMT MACHINES: CARE Keeps D Debt Rating in Not Cooperating SOUTHERN FUEL: Insolvency Resolution Process Case Summary SREI INFRA: Promoters Move Bombay HC Over RBI Insolvency Action SUBRAMANYESWARA POLYMERS: CARE Cuts Rating on INR12cr Loan to B UNIVERSAL ENTERPRISES: CARE Cuts Rating on INR5cr LT Loan to B- UNNAT FEEDS: CARE Keeps B- Debt Rating in Not Cooperating VASUDEV KHANDSARI: CARE Keeps B- Debt Rating in Not Cooperating I N D O N E S I A SOECHI LINES: Fitch Withdraws 'B' IDR for Commercial Reasons N E W Z E A L A N D OPTIONS TRADING: SFO Opens Investigation Into Firm and Director S I N G A P O R E EAGLE HOSPITALITY: Ready for Chapter 11 Plan After Settlement - - - - - ================= A U S T R A L I A ================= BUILT BY GUILD: First Creditors' Meeting Set for Oct. 14 -------------------------------------------------------- A first meeting of the creditors in the proceedings of Built By Guild (Residential) Pty Ltd will be held on Oct. 14, 2021, at 3:00 p.m. via video teleconference. Mathew Gollant of CJG Advisory was appointed as administrator of Built By Guild on Oct. 5, 2021. COCONUT BROTHERS: Second Creditors' Meeting Set for Oct. 15 ----------------------------------------------------------- A second meeting of creditors in the proceedings of Coconut Brothers Pty Ltd has been set for Oct. 15, 2021, at 10:30 a.m. at the offices of Worrells, Suite 4, Level 3, Bryant House, 26 Duporth Avenue, in Maroochydore, Queensland. 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 Oct. 14, 2021, at 4:00 p.m. Paul Eric Nogueira of Worrells Solvency & Forensic Accountants was appointed as administrator of Coconut Brothers on Sept. 10, 2021. FUSION COOLING: First Creditors' Meeting Set for Oct. 15 -------------------------------------------------------- A first meeting of the creditors in the proceedings of Fusion Cooling and Heating Pty Ltd will be held on Oct. 15, 2021, at 12:30 p.m. at the offices of Rodgers Reidy, Level 3, 326 William Street, in Melbourne, Victoria. Neil McLean and Brent Morgan of Rodgers Reidy were appointed as administrators of Fusion Cooling on Oct. 5, 2021. STERLING FIRST: Gov't. Accused of Turning its Back on Victims ------------------------------------------------------------- ABC News reports that the federal government of Australia is being accused of turning its back on elderly victims of a failed housing scheme that has left them with heavy financial losses and has seen one couple evicted. Most of the 100 victims of the Sterling First collapse have been excluded from a federal government proposal for a long-awaited compensation scheme for victims of companies that go broke, ABC says. According to ABC, Queensland retirees Pam and Michael Hellen said they were devastated to find out they would not be eligible. "You feel powerless. It's something that is completely beyond your control," the report quotes Mr. Hellen as saying. "The rest of our years are going to be a big struggle, a big struggle." "I really think they need to reassess [the compensation scheme] and just be a little bit more compassionate to the fact that we're all elderly people," she said. ABC says the scheme - known as the compensation scheme of last resort - was a key recommendation of the banking royal commission because it would provide a crucial safety net for people who won an ombudsman decision at the Australian Financial Complaints Authority (AFCA) against companies that were unable to pay because they were insolvent. While the federal government has delayed the scheme's implementation multiple times, in July it released draft legislation for public consultation. According to the report, the scheme will cover financial advice, which accounts for the bulk of unpaid ombudsman determinations, mortgage and finance broking, securities dealing, credit provision and insurance broking. Compensation will be capped at $150,000 each, far less than what the Australian Financial Complaints Authority currently covers, and be funded by industry. However, it will exclude managed investment schemes and, therefore, leave out many of the Sterling First victims, ABC states. ABC adds that Minister for Financial Services Jane Hume declined to be interviewed, instead issued a statement: "The compensation scheme of last resort (CSLR) will ensure individuals and small business consumers have confidence that when a dispute is determined in their favour, that compensation will be awarded. By value, 92 per cent of unpaid . . . determinations were from financial advice. For this reason, the CSLR will not include managed investment schemes. Whether a Sterling Group customer will be covered . . . will depend on the nature of the relationship and contracts that individual customers entered into." The lengthy delays have resulted in the number of unpaid claims against insolvent companies doubling in the past year, ABC's 7.30 can reveal. There are currently 1,300 complaints on hold with the Australian Financial Complaints Authority, which is up from 620 at around the same time last year, ABC discloses. According to ABC, AFCA said it is waiting until legislation for the compensation scheme passes Parliament before it starts considering those complaints. More than 200 complaints relate to the Sterling Group, including one from Pam and Michael Hellen, the report notes. About Sterling First Sterling First (Aust) Pty Ltd is a property and funds management group. Martin Bruce Jones and Wayne Anthony Rushton of Ferrier Hodgson were appointed as administrators of Sterling First (Aust) Pty Ltd and related companies on May 3, 2019. The related entities are: -- Acquest Capital Pty Ltd -- Acquest Property Pty Ltd -- Gage Management Ltd -- Rental Management Australia Pty Ltd -- Rental Management Australia Developments Pty Ltd -- Sterling Corporate Services Pty Ltd -- Sterling First Projects Pty Ltd -- Sterling First Property Pty Ltd -- SHL Management Services Pty Ltd -- Silver Link Investment Company Ltd -- Silver Link Securities Pty Ltd ========= C H I N A ========= CHINA EVERGRANDE: Backer to Go Private After Share Plunge --------------------------------------------------------- Bloomberg News reports that Chinese Estates Holdings, controlled by a long-time backer of embattled developer China Evergrande Group, offered to take the company private after the stock plunged to an 18-year low. The Hong Kong real estate firm, owned by the family of billionaire Joseph Lau, agreed to buy out minority shareholders for HK$4 apiece, or HK$1.91 billion ($245 million) for the 25 per cent stake, Bloomberg relays citing a Hong Kong stock exchange filing on Oct. 6. The Lau family already controls about 75 per cent of the company. Bloomberg relates that the Lau family going private represents the biggest retreat yet by a long-time backer of Evergrande and its billionaire Chairman Hui Ka Yan - Mr. Lau is part of the so-called "Poker Club" of tycoons who have backed Mr. Hui's ventures over the years. Bloomberg says the developer's stock has spiralled on concern that an Evergrande collapse could spill over into the property sector in China and Hong Kong. Chinese Estates had been a major shareholder of Evergrande before paring its stake beginning in August, and said in its statement on Oct. 6 that it has concerns over whether the sliding Evergrande can correct course. "Directors are cautious and concerned about the recent development of China Evergrande Group including certain disclosures made by China Evergrande Group on its liquidity," said the statement. The group is considering possible consequences "in the event that the remedial measures said to have been taken and to be taken by China Evergrande Group could not be effectively implemented". According to Bloomberg, the company said it could realise a loss of HK$10.4 billion if it sells the rest of its shares in the battered mainland developer this year, after estimating the potential losses last month to be about HK$9.5 billion. Solar Bright, a British Virgin Islands company ultimately owned by Mr. Lau's wife Chan Hoi-wan, is making the offer to take the company private. The bid is in concert with parties including Ms. Chan's mother and Mr. Lau's brother and sister. "There are many uncertainties including higher interest rates in the real estate and financial markets, making the company's share price unpredictable," Bloomberg quotes Ms. Chan, who is chief executive officer of Chinese Estates, as saying in a statement on Oct. 6. "This has posed high risks for investors." Her decision to privatise the company is to "provide an opportunity for minority shareholders to cash out" and to transfer all the risks to herself, she said. Mr. Lau, who is worth US$6.7 billion, according to the Bloomberg Billionaires Index, resigned as chairman of Chinese Estates after he was convicted of bribery and money laundering in Macau in 2014. Mr. Lau's wife, a former entertainment reporter, was appointed chief executive in February. The firm that Mr. Lau took control of in 1986 develops homes in Hong Kong and commercial properties including office towers and shopping malls in the former British colony, mainland China and Britain. Its business has been hurt by the coronavirus and posted a loss in the first half of this year, but it also faces a major threat from its stake in Evergrande. Chinese Estates bought about 6.5% of Evergrande at an average cost of HK$15.80 a share between 2017 and 2018, when the housing giant was expanding, Bloomberg notes. The stock traded recently at HK$3. The group and Ms. Chan owned almost 9% of Evergrande combined at the peak. Ms. Chan also subscribed to share sales by Evergrande's property services unit last year and its new energy vehicle arm in March. The company still has a 4.4% stake. The market value of Chinese Estates stands at about US$710 million as at its last trading day. The privatisation proposal values its entire issued share capital at HK$7.63 billion, according to the filing cited by Bloomberg. About China Evergrande China Evergrande Group is an integrated residential property developer. The Company, through its subsidiaries, operates in property development, investment, management, finance, internet, health, culture, and tourism markets. As reported in the Troubled Company Reporter-Asia Pacific on Sept. 30, 2021, Fitch Ratings has downgraded to 'C' from 'CC', the Long-Term Foreign-Currency Issuer Default Ratings (IDRs) of Chinese homebuilder, China Evergrande Group, and its subsidiaries, Hengda Real Estate Group Co., Ltd and Tianji Holding Limited. Fitch has affirmed the senior unsecured ratings of Evergrande and Tianji at 'C', with a Recovery Rating of 'RR6', as well as the Tianji-guaranteed senior unsecured notes issued by Scenery Journey Limited at 'C', with a Recovery Rating of 'RR6'. The downgrades reflect that Evergrande is likely to have missed interest payment on its senior unsecured notes and entered the consequent 30-day grace period before non-payment constitutes an event of default. S&P Global Ratings' rating for China Evergrande Group and its subsidiaries Hengda Real Estate Group Co. Ltd. and Tianji Holding Ltd. was lowered to 'CC' from 'CCC' last September 15, 2021. S&P also lowered its long-term issue rating on the U.S. dollar notes issued by Evergrande and guaranteed by Tianji to 'C' from 'CCC-'. TTM TECHNOLOGIES CHINA: Fitch Affirms 'BB' LT IDRs, Outlook Stable ------------------------------------------------------------------ Fitch Ratings has affirmed the Long-Term Issuer Default Ratings (IDRs) of TTM Technologies, Inc. and TTM Technologies China Limited at 'BB' with a Stable Rating Outlook. Fitch has also affirmed the senior secured debt rating of 'BBB-'/'RR1' for the ABL facilities and the senior unsecured debt rating of 'BB'/'RR4'. Fitch has also affirmed the senior secured debt rating and revised the recovery rating for the term loans to 'BB+'/'RR2' from of 'BB+'/'RR1' and has removed TTM Technologies, Inc. from Under Criteria Observation (UCO). Fitch's actions affect approximately $1.2 billion of committed and outstanding debt. KEY RATING DRIVERS Improved End-Market Mix: TTM has executed well on its strategy to reduce operating volatility by seeking an increased mix of sales into end markets with advantageous characteristics. The company eliminated its exposure to deeply cyclical consumer electronic device markets following the 2020 sale of manufacturing plants that comprised its mobility business, while also discontinuing operations at the low margin EMS business. In place of these sales, TTM has increased its exposure to favorable end markets, such as automotive and aerospace and defense (A&D), which reached 13% and 37% of 2020 revenue respectively and which are characterized by longer product cycles, greater technological complexity, deeper customer engagement, lower threat of competitive displacement and decreased order volatility. Fitch believes the improved end-market mix contributes to lower revenue volatility through economic and product cycles, introduces new sources of secular growth, and presents opportunities for margin enhancement through customer collaboration, increased advanced product sales, improved production visibility and increased returns on capital investment. Reduced Customer Concentration: The divestiture of TTM's Mobility business significantly reduces customer concentration by nearly eliminating sales to the company's largest handset original equipment manufacturer (OEM) customer that represented 15%-20% of revenues during 2016-2019. While TTM's remaining OEM clients also operate in concentrated markets, such as A&D, wireless infrastructure and autos, the company's revenue exposure to its top five clients has been reduced to 29% from 32%-37% during 2016-2019. Fitch believes the remaining large customers improve revenue stability and visibility through favorable secular trends, longer product cycles and deeper design engagement. Commitment to Leverage Target: TTM management has expressly committed to a long-term net leverage target of 2.0x EBITDA. TTM underscored the commitment through a $400 million prepayment of the term loan and repayment of the $250 million convertible notes in 2020, funded by proceeds from the sale of the Mobility segment and FCF, which returned gross leverage to 2.9x in FY20 with net leverage well below the target at 1.3x. As strong FCF leads to continued accumulation of cash, the company instituted a modest $100m share repurchase program in order to progress upwards towards the target over time. As the company continues to experience robust demand trends in its end-markets, Fitch expects inflationary pressures from input costs and labor shortages will lead to moderate margin compression in FY21 and an increase in leverage to 3.5x before decreasing to below 3.0x in the following year, while net leverage is forecast to remain below management's target over the rating horizon. Previously the company has demonstrated willingness to exceed the target for M&A opportunities, but management historically prioritized debt repayment to return to the long-term target in two to three years following an acquisition. The 2015 Viasystems acquisition took pro forma net leverage (excluding synergies) to 4.1x and was followed by $220 million in voluntary debt prepayment, reducing net leverage to 2.1x by YE 2016. The 2018 Anaren acquisition was similarly followed by an initial $144 million in voluntary term loan prepayments. Product Necessity: TTM produces printed circuit boards (PCBs), which are used to connect the underlying circuitry in nearly all electronic and computing products. Given the product's necessity, long-term demand for PCBs is secure, despite short-term economic cyclicality. Fitch believes the ubiquitous nature of and sustainable demand for PCBs is supportive of the company's credit profile. Reliable FCF Generation: TTM generated FCF margins ranging from 5%-6% over the most recent four years and has demonstrated strong cash flow resiliency during adverse environments with minor deviation from the four-year historical range. Fitch believes the sale of the Mobility segment, increased sales of advanced technologies, opportunities to engage clients in complex design and engineering work, accelerated demand growth in attractive end markets such as A&D and automotive, longer product runs and lower upfront capital investment, may drive improved FCF margins over the long term. Fragmented Industry: The PCB industry contains nearly 2,600 manufacturers, with the top five, including TTM, accounting for 4%-5% market share each. Fitch believes the high fragmentation results in ongoing pricing pressure, limited margin expansion opportunity and revenue volatility. TTM has improved its competitive positioning through development of advanced technologies and with the acquisition of Anaren, which provides competitive advantages in A&D markets, as well as with its large-scale, global manufacturing footprint capable of fulfilling the high-volume needs of large OEMs. Weak Position in Value Chain: TTM often experiences low revenue visibility given its status as subcontractor, limited backlog of approximately 90 days, lack of volume commitments in contracts and short lead times for purchase orders that are typically subject to cancellation without penalty. Fitch believes the company's position reduces forecasting ability and contributes to revenue and EBITDA margin volatility. DERIVATION SUMMARY TTM continues to pursue the strategic goal of reducing operating volatility through increased exposure to markets with favorable characteristics. Following the Anaren acquisition in 2018, which increased exposure to A&D markets, during 2020 TTM completed the sale of its Mobility business unit a Chinese consortium, AKMMeadville Electronics (Xiamen) Co., Ltd., for $550 million plus the collection of certain outstanding accounts receivable. The transaction eliminated remaining exposure to consumer electronics markets, which have frequently experienced acute swings in production volumes due to short lead times, high customer concentration and elevated seasonality, while also presenting minimal further growth opportunity due to handset saturation. In addition, TTM discontinued operations at its the low margin and underscaled EMS business. TTM's increasing focus on attractive markets, such as A&D, automotive, medical/industrial and wireless infrastructure enable the company to benefit from the secular tailwinds driving these markets including, increased defense spending and strategic focus on radar and other advanced technology, rising electronic content in autos, 5G buildout, development of medical instrumentation and internet of things. Increased exposure to these end markets provides stronger long-term growth prospects, reduced economic sensitivity, improved predictability, deeper customer engineering engagement and longer product cycles. Fitch views the impacts of the sale and exit from the handset market positively, as it eliminates many of the adverse dynamics and risks TTM experienced in recent years, while increasing focus on stronger end markets and allowing the company to move up the value chain with more highly engineered products, resulting in a healthier operating profile. TTM is well positioned comparably among industry competitors given its top-five position in the PCB industry, global manufacturing scale, end-market diversification, focus on leading advanced technology PCBs, deep engineering engagement with customers and sole position as a U.S.-domiciled PCB manufacturer with the necessary capabilities to serve sensitive product areas in A&D and other technology markets. TTM has experienced similar operating volatility compared with credit peers Jabil Inc. (BBB-/Stable) and Flex Ltd. (BBB-/Stable) but has generated favorable FCF margins in the mid to high single digits with few periods of cash burn throughout cycles. TTM has also demonstrated greater willingness to absorb higher leverage for M&A transactions that fulfil strategic priorities, such as the Anaren acquisition, that along with deterioration in end markets at the time contributed to leverage elevated above Fitch and management targets for an extended period. However, the collection of proceeds from the disposition and subsequent repayments of $400 million on the term loan and $250 million on the convertible notes reduced gross leverage back to within Fitch's 3.5x negative sensitivity threshold. The ratings reflect the company's improved end-market mix, reduced customer concentration, gradual progress up the value chain, demonstrated commitment to prepaying debt to achieve leverage targets, reliable FCF and expectation for reduced operating volatility. No Country Ceiling or operating environment aspects affect the rating. Fitch applied its parent/subsidiary criteria and determined the IDRs of the parent and subsidiaries should be equalized due to strong legal, operational and strategic ties. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: -- Revenue: growth of 5% in 2021 due to partial recovery in automotive production volumes and strong demand from data center and semiconductor packaging and test markets, partially offset by pressures in commercial aerospace end-markets and weak 5G infrastructure spend in China; growth of 4% per annum thereafter due to strength in strategic Defense platforms, increasing electronic content in Automotive end-markets, 5G infrastructure buildout and continued Data center expansion; -- EBITDA margin of 12% in 2021 due to inflationary pressures from input costs and labor shortages, returning to 14% in FY22 and expanding of 50 bps per annum thereafter due to increased engineering engagement with customers, growth in advanced technology sales, increased mix from higher-margin Anaren revenues and operating leverage; -- Capex: capital intensity of 4%-5%, consistent management's target; -- Shareholder returns: gradual fulfilment of $100m stock repurchases program followed by $50 million of repurchases per annum; -- Debt: refinancing or extension of 2024 maturities. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- Expectation for total debt with equity credit/operating EBITDA to be sustained below 3.0x; -- Expectation for gross debt/FCF to be sustained below 6.0x; -- Improved diversification and increased exposure to more stable end markets results in reduced cyclicality and improved visibility. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- Expectation for total debt with equity credit/operating EBITDA to be sustained above 3.5x due to a change in financial policies and/or deterioration of growth and margin expansion opportunities; -- Expectation for gross debt/FCF to be sustained above 7.0x. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. LIQUIDITY AND DEBT STRUCTURE Robust Liquidity Position: The company's liquidity position has grown substantially, consisting of over $558 million of readily available cash and available borrowing capacity under the U.S. ABL and the Asia ABL facilities of $138 million and $116 million, respectively, pro forma for the transaction. Strong FCF during 2019-2020 and continuing into FY21, along with the sale of the Mobility unit, has led to significant growth in cash from $256 million at YE fiscal 2018. Liquidity is further supported by TTM's reliably consistent FCF that Fitch forecasts will total nearly $300 million over the ratings horizon. In addition, the recent repayments of the $375 million senior unsecured notes due 2025, improves the company's maturity schedule with the outstanding term loan due in 2024 and the new notes due in 2029. Total committed and outstanding debt, pro forma for the transaction, consists of: -- $150 million U.S. ABL facility due 2024, undrawn; -- $30 million outstanding on the $150 million Asian ABL facility due 2024; -- $406 million outstanding principal on the senior secured term loan due 2024; -- $500 million outstanding principal on the senior unsecured notes due 2029. ISSUER PROFILE TTM is a global manufacturer of printed circuit boards (PCBs) and of high-frequency radio frequency (RF) and microwave components. PCBs, which are ubiquitous in all electronic products, are laminated panels, or boards, that contain the electrical circuitry that provides connections between the components. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. ========= I N D I A ========= ADITYA INFRA: CARE Keeps B- Debt Rating in Not Cooperating ---------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Aditya Infra and Agri Business Private Limited (AIABPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 8.00 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated September 21, 2020, placed the rating(s) of AIABPL under the 'issuer non-cooperating' category as AIABPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. AIABPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated August 7, 2021, August 17, 2021 and August 27, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). AIABPL was incorporated in 2011 by Mr. U. Sadananda Nayak and Mr. U. Aditya Nayak and has been engaged in civil construction of roads, water drainages etc. The company operates as sub-contractor for a fixed set of contractors' viz. M/s Yojaka India Private Limited, M/s Liya Infratech Private Limited and M/s Iqbal Ahmed Infra Projects Private Limited. AIABPL mainly operates in the state of Karnataka; however, it has undertaken few contracts in Kerala and Assam as well. Moreover, the promoters are also engaged in agricultural commodity export activities through a group concern viz. Entrack Overseas Private Limited for over 4 years now. ADITYA TRADERS: CARE Lowers Rating on INR0.50cr LT Loan to B ------------------------------------------------------------ CARE Ratings revised the ratings on certain bank facilities of Aditya Traders (AT), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 0.50 CARE B; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category and Revised from CARE B+; Stable Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated September 25, 2020, placed the rating(s) of AT under the 'issuer noncooperating' category as AT had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. AT continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated August 11, 2021, August 21, 2021, August 31, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings for bank facilities of AT have been revised on account of non-availability of requisite information. Andhra Pradesh based, Aditya Traders (AT) was established in 2010 and promoted by Mr. Konjeti Ravi Kumar (Managing Partner) and Mr. Konjeti Anil Kumar (Partner) both are qualified graduates. AT is engaged in trading of spices like chillies, stemless chillies, dry chillies, etc. The firm procures the different varieties of chillies like stemless chillies, dry chillies, from Karnataka, Telangana, and Andhra Pradesh. The firm sells its products to customers located at Kerala, Tamil Nadu, Kolkata and Mumbai etc. ALLETARE BUILDS: CARE Lowers Rating on INR10cr Loan to B -------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Alletare Builds Private Limited (ABPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term/Short 10.00 CARE B; Stable; ISSUER NOT Term Bank COOPERATING; Rating continues Facilities To remain under ISSUER NOT COOPERATING category and Revised from CARE B+; Stable Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated August 26, 2020, placed the rating(s) of ABPL under the 'issuer non-cooperating' category as ABPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. ABPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated July 12, 2021, July 22, 2021, August 1, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. The ratings of ABPL have been revised on account of non-availability of requisite information. Alletare Builds Private limited (ABPL) was incorporated in September 2018 as a Private limited company, by Mrs. Rizwana Yusuf Mithaiwala and Mr. Mansoor Mithiawala to setup the business of printing solutions viz. barcode printing, multicolor printing labels, printing with lamination and UV varnishing and foil stamping which find its application in various industries viz. Beverage, Cosmetic, Confectionary, FMCG, Oil & Lubricant, Pharmaceutical etc. The company has its group entity namely Hutaib Interior (HI) which is engaged in providing Interior services & Self Adhesive Label Printing solutions (Barcode printing). ABPL is setting up manufacturing plant for providing printing solutions at its existing unit of HI. The raw material required viz. Face paper (Matte & Glossy), Adhesive, Liner 65 gsm, Ink, etc. and the same will be procured domestically from Mumbai. BRAVO AGENCIES: CARE Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Bravo Agencies Private Limited (BAPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 7.50 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 7.50 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated August 27, 2020, placed the rating(s) of BAPL under the 'issuer non-cooperating' category as BAPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. BAPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated July 13, 2021, July 23, 2021, August 2, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Delhi-based BAPL was incorporated in April 1995. The company is currently promoted by Mr. Balwant Jain and Mr. Pawan Mittal. BAPL is engaged trading of flat rolled steels like cold rolled steel, hot rolled steel, electrical steel, tin mill products, etc. The warehouses are located at Mundka, Delhi. The company procures steel from various mills throughout the country. The company undertakes only domestic sales wherein it sells the product to various other equipment manufacturers and traders of steel. DABANG METAL: CARE Keeps D Debt Rating in Not Cooperating Category ------------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Dabang Metal Industries (DMI) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 5.95 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated August 27, 2020, placed the rating(s) of DMI under the 'issuer non-cooperating' category as DMI had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. DMI continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated July 13, 2021, July 23, 2021, August 2, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Kotdwar (Uttrakhand) based, Dabang Metal Industries (DMI) was established as partnership firm in February 2012 by Mr. Vishal Tayal, Mr. Mahender Jain, Mr. Sachin Gupta, Mr. Sharad Alan and Mr. Sunil Gupta sharing profit and losses in ratio is 35%, 35%, 10%, 10%, and 10% respectively. The firm commenced its commercial operation from February 2013. The firm is engaged in drawing of copper wires of thickness of 1 mm to 6 mm which finds its application in electrical cable industry. The firm procures the key raw material i.e. copper rod from Hindalco Industries Limited, Sterlite Industries Limited, Birla Copper Limited and Hindustan Copper and the same is converted into wire of thickness of 1mm to 6 mm. DMI sells its product to companies like ADL ORBIT Cables, Asian Galaxy Private Limited and other companies situated in Uttrakhand and Uttar Pradesh. DEEP LUMBERS: CARE Keeps C Debt Rating in Not Cooperating --------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Deep Lumbers Private Limited (DLPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 1.50 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category Short Term Bank 7.50 CARE A4; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated September 4, 2020, placed the rating(s) of DLPL under the 'issuer non-cooperating' category as DLPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. DLPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated July 21, 2021, July 31, 2021 and August 10, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). DLPL was incorporated in 2013 and commenced operations in August 2013. The company is currently being managed by Mr. Kamal Deep Garg, Mr. Pradeep Garg and Mr. Chander Shekhar Garg. DLPL is engaged in trading and sawing of timber in form of timber blocks. The company has its trading cum processing facility located at Gandhidham, Gujarat. The company imports timber wood from Malaysia, Singapore, New Zealand, etc, and the finished products i.e. timber blocks are sold domestically. Furthermore, the company also engaged in trading of timber blocks domestically and the traded good is also imported from Malaysia, Singapore, New Zealand, etc. The company has one associate concern, namely, Deep Timbers Private Limited which is engaged in similar line of business since 2009. EATAGE AGRO: CARE Assigns D Rating to INR15cr LT Loan ----------------------------------------------------- CARE Ratings has assigned rating to the bank facilities of Eatage Agro Private Limited (EAPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank Facilities 15.00 CARE D Assigned Detailed Rationale & Key Rating Drivers The rating assigned to the bank facilities of EAPL takes into account delays in debt servicing of the company triggered by delay in commissioning of plant and liquidity issues faced due to disruption in operation post-commissioning in March 2021 in view of second wave of the pandemic. Rating Sensitivities Positive rating sensitivities * Default free track record of debt servicing as per CARE's policy. Detailed description of the key rating drivers Key Rating Weakness * Ongoing delays in debt servicing: The repayment of term loan was earlier scheduled to start from June 2020 or after 3 months from the scheduled Date of Commercial Operation (DCCO). However, the bank set a revised project implementation schedule as per which the commercial operation was scheduled to start from May 2021 and repayment of term loan was scheduled to start from June 30, 2021. However, due to second wave of Covid19, EAPL applied for restructuring of the account in June 2021. There were delays in repayment of term loan, pending approval of restructuring. Liquidity analysis-Stretched: As the entity has commenced commercial operations from March 2021, it is at nascent stage of operation. Further, the entity has availed term loan from Canara Bank for execution of the project. This apart, the average utilization of working capital borrowings was around 70% during last four months ended June 2021. EAPL is incorporated in April 2017 as a Private Limited Company by Mr. Binod Kumar and Ms. Poonam Kumari, reputed business name in Bihar. The company is engaged in milling of flour (Atta) on job-work basis for ITC Ltd. The company has set up a flour milling unit for this purpose with an installed capacity of 300 Tonnes per Day (TPD). The commercial operation of the unit has started from March 2021. EAPL processes flour on job work basis from ITC Limited and is the first such unit in Bihar to Process ITC flour under its renowned brand 'Aashirvaad'. EAPL has signed an MOU with ITC Ltd. on Feb.15, 2018, to process their product. Mr. Binod Kumar is a renowned businessman in the region having business experience of more than 10 years in the field of biscuit manufacturing (for PARLE), flour Mill, bakery business (for MODERN) under different associate entities like Lavanya Finvest Pvt. Ltd., Lavanya Purefood Pvt. Ltd., Brown Belly Products Pvt. Ltd (CARE B-; Stable) etc. EVERSHINE SOLVEX: CARE Keeps D Debt Rating in Not Cooperating ------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Evershine Solvex Private Limited (ESPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 14.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated August 26, 2020, placed the rating(s) of ESPL under the 'issuer non-cooperating' category as ESPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. ESPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated July 12, 2021, July 22, 2021, August 1, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Evershine Solvex Private Limited (ESPL) is a private limited company incorporated in September 1983 and commenced operations in April 1984. The company is currently being managed by Mr. Ravinder Kumar Kalra and Mr. Pankaj Kalra. ESPL is engaged in the extraction of rice bran oil at its processing facility located in Muktsar (Punjab) with an installed capacity to extract 86400 tonnes of rice bran oil per annum. ESPL has two associate concerns, namely, Ekam Agro Private Limited (CARE BB-; Stable) which is engaged in refining of oil since 2014 and Mithan Lal Kalra Rice Mills (MKRM) which is a partnership firm engaged in rice milling since 1977. GMR WARORA: CARE Lowers Rating on INR75cr NCD to D -------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of GMR Warora Energy Limited (GWEL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank Facilities 2,782.00 CARE D Reaffirmed Long Term/ Short Term Bank Facilities 325.00 CARE D/CARE D Reaffirmed Short Term Bank Facilities 227.00 CARE D Reaffirmed Non Convertible Debentures 75.00 CARE D Revised from CARE C Detailed Rationale & Key Rating Drivers CARE has revised the ratings for NCD of GWEL to 'CARE D' as there are delays in servicing of debt obligations by the company. The reaffirmation of rating for the bank facilities bearing S. No (i) to (iii) continues to take into account the delay in servicing of debt obligation. The rating continues to remain constrained by GWEL's weak financial risk profile characterized by high overall gearing. The rating is also constrained by untied capacity of the plant and a relatively weak credit risk profile of its off-takers. The ratings derive strength from the experience of its promoters in operating power projects and Fuel Supply Agreement (FSA) for coal supply with South Eastern Coalfields Ltd (SECL). CARE takes cognizance of development with respect to the company applying for implementation of a Resolution Plan (RP) in line with RBI circular dated June 7, 2019. The lenders have executed the Inter Creditor Agreement (ICA) as per the requirements under the RBI guidelines. Subsequently, GWEL has submitted a debt restructuring proposal to the lenders for their consideration. The final terms of the implemented RP shall remain a key monitorable. Rating Sensitivities Positive Factors - Factors that could lead to positive rating action/upgrade: * Timely servicing of debt obligations for more than 3 months. Detailed description of the key rating drivers Key Rating Weaknesses * Instances of delay in servicing of debt obligations: The company vide exchange announcement dated September 27, 2021 has reported that the interest and redemption amount which was due for the NCDs on September 25, 2021 could not be paid on the due date. Further, there are continued delays in servicing of debt obligations related to the bank facilities. The company continues to face delays in realization of receivables from its off-takers which has resulted in deterioration of the liquidity profile and consequent delays in servicing of debt obligations. * Weak financial risk profile marked by leveraged capital structure: GWEL has a weak financial risk profile characterized by high overall gearing and moderate debt coverage indicators. The overall gearing of the company deteriorated from 7.18x as of March 31, 2020 to 8.55x as of March 31, 2021, largely on account of increase in total debt and further due to erosion in net worth due to net losses reported during FY21. * Counterparty credit risks leading to delay in receivables: GWEL is supplying power to Maharashtra State Electricity Distribution Company Limited (MSEDCL) and Tamil Nadu Generation and Distribution Limited (TANGEDCO). Among the two utilities, TANGEDCO has a relatively weak financial profile with high AT&C losses, high power purchase cost and a relatively long payable cycle. The payments from the counterparties especially TANGEDCO are being received in a delayed manner and has resulted in piling up of receivables during FY21. Key Rating Strengths * Experienced promoter group with experience in developing power projects: GWEL is a part of GMR group which is a major player in the infrastructure sector through its flagship company GMR Infrastructure Limited (GIL). Over the years GMR group has successfully implemented various power projects and has substantial experience in developing and operating diversified fuel-based power projects. * Fuel Supply Agreement (FSA) in place with SECL: GWEL has FSA with SECL for feeding both the units of 300 MW each available only for long-term PPAs. The presence of FSA with SECL safeguards GWEL against any fuel supply risks. In case of any short supply from SECL, GWEL meets the same through e-auction and imported coal. Liquidity - Poor The liquidity position of the company continues to remain poor with ongoing delays in servicing of debt obligations related to both bank facilities and NCDs. The average utilization in the fund-based working capital limits stood above 95% during the past 12 months ended May 2021. The company had free cash and bank balance of INR9.56 crore as of March 31, 2021. GWEL was previously known as EMCO Energy Limited (EEL) - a Special Purpose Vehicle (SPV) promoted by the EMCO group on August 04, 2005 to set up a 2x135 MW coal-based power plant at Maharashtra Industrial Development Corporation (MIDC), Warora, Maharashtra. The promoters of EEL sold the entire stake to GMR Energy Limited in July 2009 making it a 100% subsidiary of GEL. After the acquisition, scope of the project was enhanced from 2x135 MW to 2x300 MW in view of the demand for power in western India. Unit 1 and Unit 2 (each having capacity of 300 MW) achieved COD on March 19, 2013, and September 1, 2013, respectively. GURU GRANTH: CARE Keeps D Debt Rating in Not Cooperating -------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Sri Guru Granth Sahib World University (SGGSWU) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 30.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated August 20, 2020, placed the rating(s) of SGGSWU under the 'issuer non-cooperating' category as SGGSWU had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. SGGSWU continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated July 6, 2021, July 16, 2021, July 26, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. The establishment of SGGSWU was announced in 2004, subsequent to the formation of the Sri Guru Granth Sahib Fourth Centenary Memorial Trust (SGGST) in the same year. The university was established by the trust under the Punjab State Act 2008 to provide higher education. The trustees of SGGST include some of the eminent members of the Shiromani Gurudwara Prabandhak Committee (SGPC). The university has its campus in Fatehgarh Sahib (Punjab) with Academic Year 2011-12 being the first academic session. SGGSWU is operating twenty-nine departments at its premises in Fatehgarh Sahib, Punjab, offering various graduate, post-graduate and doctoral programs in sciences, arts, languages, etc. The university is approved under section 2(f) of the UGC (University Grants Commission) Act, 1956. HARROW EDUCATIONAL: CARE Keeps D Debt Rating in Not Cooperating --------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Harrow Educational Society (HES) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 5.39 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated September 4, 2020, placed the rating(s) of HES under the 'issuer non-cooperating' category as HES had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. HES continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated July 21, 2021, July 31, 2021, August 10, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Uttar Pradesh based HES was established in 1981 with an objective to provide education services. The society is managed by Er. Navin Prasad Mathur (President), Mrs. Veena Mathur (Secretary) and Mr. Vinesh Pal Singh (Treasurer). HES provides undergraduate and post-graduate courses in various fields of Engineering, Computers Science, Management and Pharma. The colleges is affiliated to Gautam Buddha Technical University and is approved by the All India Council for Technical Education (AICTE). The society also operates a school in the name of Harrow School providing primary and secondary education from Nursery to class XIIth. The school is affiliated to Central Board of Secondary Education (CBSE). HIMANSHU INDUSTRIES: CARE Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Himanshu Industries (HI) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 10.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated September 4, 2020, placed the rating(s) of HI under the 'issuer non-cooperating' category as HI had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. HI continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated July 21, 2021, July 31, 2021, August 10, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Himanshu Industries (Himanshu) was established in January 2005 as a proprietorship firm by Mr. Himanshu Garg. The firm is engaged in the manufacturing of corrugated boxes, mono cartons and rigid boxes. The firm has its manufacturing unit at Faridabad, Haryana with an installed capacity of 10,00,000 pieces per month as on March 31, 2017. Prior to April 2016, the firm was engaged in leasing & renting services. The firm undertakes direct sales under the brand name "BigBox Inc" mainly to manufacturers located in the region of Delhi NCR wherein it caters to some large and reputed player viz. VLCC Health Care Limited, Panasonic India Private Limited, FieldFresh Foods Private Limited (DelMonte India), Intex Technologies (India) Limited, Karbonn Mobile India Private Limited, Magicon Impex Private Limited (JIVI Mobiles), etc. HUHTAMAKI FOODSERVICE: CARE Keeps B- Rating in Not Cooperating -------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Huhtamaki Foodservice Packaging India Private Limited (HFPIPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 23.00 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated September 3, 2020, placed the rating(s) of HFPIPL under the 'issuer non-cooperating' category as HFPIPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. HFPIPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated July 20, 2021, July 30, 2021, August 9, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. Huhtamaki Foodservice Packaging India Pvt. Ltd (erstwhile known as Valpack Solutions Private Limited (VSPL), incorporated in 2012 by Mr. Vaibhav Garg and Mr. Param Gandhi, is engaged in the manufacturing of paper products such as cups, buckets and lids which find its applications in Food & beverages (F&B), FMCG, Hospitality and other industries. HFP has its manufacturing facility located at Bhiwandi, Maharashtra having an installed capacity of 2448 lakhs units per annum for cups and 450 lakhs units for lids. HUMBLE HOSPITALITY: CARE Keeps D Debt Rating in Not Cooperating --------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Humble Hospitality (punjab) Private Limited (HHPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.85 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated August 26, 2020, placed the rating(s) of HHPL under the 'issuer non-cooperating' category as HHPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. HHPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated July 12, 2021, July 22, 2021, August 1, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). HHP, incorporated in February 2012, is being managed by Mr. Inderpreet Singh Chadha, Mr. Surjit Singh, Mr. Harpreet Singh Chadha, Mr. Harpreet Singh, Mr. Mayank Umat and Mr. Prabhpreet Singh Chadha. The company has constructed a four-star hotel under the name of "Humble - Una Hotels" in Amritsar, Punjab. The hotel is constructed on a total land area of 2,400 square yards and has 42 rooms (including suites and deluxe rooms), 3 banquet halls, 2 restaurants, a bar and a coffee shop. The business operations of the hotel started in February 2014. J.B. GOLD: CARE Keeps D Debt Rating in Not Cooperating Category --------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of J.B. Gold Private Limited (JGPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 9.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated August 25, 2020, placed the rating(s) of JGPL under the 'issuer non-cooperating' category as JGPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. JGPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and email dated July 11, 2021, July 21, 2021, July 31, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Delhi-based JB Gold Private Limited (JBGPL) was incorporated in 2011 as a private limited company by Mr. Rajnish Gupta and his wife Ms Nisha Gupta. JBGPL is engaged in the wholesale trading of gold jewelry, diamond jewelry and loose cut & polished diamonds, registered office being at Karol Bagh, Delhi. The company also started in-house manufacturing of gold & diamond jewelry in FY14 under its own brand name 'Kiyan'. Roshni Jewellers Private Limited (rated CARE D; INC) is a group associate of JBG and is engaged in the same line of business. JKR TECHNO ENGINEERS: Insolvency Resolution Process Case Summary ---------------------------------------------------------------- Debtor: JKR Techno Engineers Private Limited B-87/4, (F-1) Dilshad Colony New Delhi 110095 Insolvency Commencement Date: September 24, 2021 Court: National Company Law Tribunal, New Delhi Bench Estimated date of closure of insolvency resolution process: March 24, 2022 Insolvency professional: Kamall Ahuja Interim Resolution Professional: Kamall Ahuja A-5, Second Floor Defence Colony New Delhi 110024 E-mail: nclt.srassociate@lawmax.in - and - Lawmax Advocates & Solicitors D-251, Ground Floor Defence Colony New Delhi 110024 E-mail: cirp.jkr@gmail.com Last date for submission of claims: October 12, 2021 KAIVAL POLYPLAST: CARE Lowers Rating on INR17.50cr Loan to B- ------------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Kaival Polyplast LLP (KPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 17.50 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category and Revised from CARE B; Stable Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated September 24, 2020, placed the rating(s) of KPL under the 'issuer non-cooperating' category as KPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. KPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated August 10, 2021, August 20, 2021, August 30, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings assigned to the bank facilities of KPL have been revised on account of non-availability of requisite information. The ratings also factored in decline in profits as well as capital structure during FY20 over FY19. Anand-based (Gujarat) KPP; a limited liability partnership firm was established in April 2018 by Mr. Devang Shah and Mr. Dharmesh Shah along with Ms. Rupal Shah and Ms. Swati Shah. KPP is into manufacturing of plastic master batches, self-adhesive tapes, green agro nets and various other plastic products like chemical drum, pesticides bottles, containers etc. using blow molding and injection molding technologies. The manufacturing facility is located at Borsad, Anand with an installed capacity of 5,928 Metric tonnes per annum as of March 31, 2019. For the envisaged project of INR19.00 crore, the debt-equity mix remained at 1.92 times. KPP has already initiated trial runs during December 2018. KPP has two associates namely Devi Marketing Private Limited and Kaival Plast Industries operating in the same line of business. PUNE BUILDTECH: CARE Keeps D Debt Rating in Not Cooperating ----------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Pune Buildtech Private Limited (PBPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 286.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated September 21, 2020, placed the rating(s) of PBPL under the 'issuer non-cooperating' category as PBPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. PBPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated August 7, 2021, August 17, 2021, August 27, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). PBPL (formerly known as Dynamix Balwa's Resorts Pvt. Ltd.) is a wholly-owned subsidiary of Marine Drive Hospitality & Realty Pvt. Ltd. (MDHRPL), formerly known as DB Hospitality Pvt. Ltd. MDHRPL is a private limited company incorporated with an object of setting up chain of hotels across the country under five star deluxe, five star, four-star categories and construction of real estate buildings. MDHRPL has been promoted by DB Group, a diversified business group in India with interests in real estate and hospitality and currently operates two hotel properties. PBPL is developing a project 'DB Solitaire' with both residential and commercial use near Pune Airport. PBPL had initial plans to develop a residential project but to tap in the demand for the commercial space; PBPL is developing the project as a mix use - residential and commercial. Due to this change, the total saleable area potential of the project has reduced to 5.76 lsf from 6.1 lsf envisaged earlier. The project building consists of one tower having two wings – one residential and other commercial of 18 floors each. Total number of units for sale is 380. R M ENTERPRISE: CARE Keeps D Debt Rating in Not Cooperating ----------------------------------------------------------- CARE Ratings said the rating for the bank facilities of R M Enterprise (RME) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 7.50 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated September 24, 2020, placed the rating(s) of RME under the 'issuer non-cooperating' category as RME had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. RME continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated August 10, 2021, August 20, 2021, August 30, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Surat (Gujarat) based, RME was established as a partnership firm in 2015. RME is currently executing a residential with 3 BHK 51 flats at Surat named 'Kusum Heights' which comprises of 13 floors involving development of 1895.16 Square Feet area. The project implementation commenced in October 2015 and till April 2017, RME has incurred the total cost of INR8.81 crore (45% of total project cost) out of the total cost of INR19.43 crore. RME has received approvals for land and other relevant clearances for the project. R. K. MARKETING: CARE Keeps B- Debt Rating in Not Cooperating ------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of R. K. Marketing (RKM) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.00 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated August 26, 2020, placed the rating(s) of RKM under the 'issuer noncooperating' category as RKM had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. RKM continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated July 12, 2021, July 22, 2021, August 1, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Agra, Uttar Pradesh based R. K. Marketing (RKM) was established in September, 1997 as a proprietorship firm and is currently managed by Mr. Rakesh Kumar Agrawal. The firm has an authorized dealership of various companies i.e. Videocon Industries Limited, Whirlpool of India Limited, Carrier Midea India Private Limited, Symphony Comfort Systems Limited, Empire Home Appliances Limited, etc. RAC EXTRUSIONS: CARE Keeps B+ Debt Rating in Not Cooperating ------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of RAC Extrusions Limited (REL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.50 CARE B+; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated August 27, 2020, placed the rating(s) of REL under the 'issuer non-cooperating' category as REL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. REL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and email dated July 13, 2021, July 23, 2021, August 2, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Delhi-based, RAC Extrusions Limited (REL) (erstwhile known as Shiv Shakti Extrusions Ltd) was incorporated in 1996 as a public limited company. The company is currently being managed by Mr. Shiv Kumar Mittal. RAC is primarily engaged in the manufacturing and trading of aluminum angel, aluminum flats & aluminum pipes. The company procures raw material i.e. aluminum scrap and aluminum ingots from domestic traders and also imports the same. It sells its products directly to wholesaler, manufacturers and retail customers mainly in Northern India. SAI SUDHA: CARE Keeps B+ Debt Rating in Not Cooperating Category ---------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Sai Sudha Motors Private Limited (SSMPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 11.00 CARE B+; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated September 28, 2020, placed the rating(s) of SSMPL under the 'issuer non-cooperating' category as SSMPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. SSMPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated August 14, 2021, August 24, 2021, September 3, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). SSMPL, incorporated in 2012, is promoted by Odisha-based Mr. Suvendu Mohanty. The company is an authorized dealer for sale of Medium and Heavy commercial vehicles (M&HCV) as well as services and sale of spares of Tata Motors Limited (TML) in four districts of Odisha namely Cuttack, Jajpur, Kendrapara and Jagatsinghpur. SSMPL is a closely-held company with the directors representing the promoter's family. The day-to-day affairs of the company are looked after by Mr. Suvendu Mohanty, duly supported by his brother Mr. Bimalendu Mohanty. SATYA SRINIVASA: CARE Keeps B- Debt Rating in Not Cooperating ------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Satya Srinivasa Enterprises (SSE) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 8.00 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated September 7, 2020, placed the rating(s) of SSE under the 'issuer non-cooperating' category as SSE had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. SSE continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated July 24, 2021, August 3, 2021, and August 13, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Andhra Pradesh-based, Satya Srinivasa Enterprises (SSE) was established on October 16, 1992 as a partnership firm and promoted by Mr. Bhuma Srinivas, Mrs. Bhuma Adilakshmi and Mr. Bhuma Rama Rao. The firm is engaged in processing of cotton lint and cotton seeds. The manufacturing unit is spread in total area 0.66 acres located at Guntur, Andhra Pradesh. SSE purchases raw cotton (cotton kappas) from farmers and dealers located in and around Guntur, Andhra Pradesh. The firm processes the raw cotton and separates the lint and cotton seeds from raw cotton. Later on, pressing and compressing 3 CARE Ratings Limited Press Release cotton lint into bales. SSE also involves in trading of cotton lint. SSE sells bales to the customers in Andhra Pradesh and cotton seeds to oil mills located in Andhra Pradesh only. SINGLACHERRA TEA: CARE Keeps C Rating in Not Cooperating Category ----------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Singlacherra Tea Company Private Limited (STCPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 11.56 CARE C; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated September 22, 2020, placed the rating(s) of STCPL under the 'issuer non-cooperating' category as STCPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. STCPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated August 8, 2021, August 18, 2021, August 28, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). STCPL was incorporated in April 1962 for cultivation of tea at its tea garden at Karimganj (Assam). The aggregate area available for cultivation is 800 hectares. STCPL has been developing the available aggregate area for cultivation at aggregate project cost of INR1839 lakh, being financed at a debt equity ratio of 1.69:1. The present area under cultivation is only 336.70 hectares and the company is developing the balance 463.3 hectares of unutilised land at its garden. Along with tea plantation, the company also proposes to grow rubber and bamboo plants (to derive the benefits of rubber-tea intercropping) in the proposed cultivable land within the tea estate. SMT MACHINES: CARE Keeps D Debt Rating in Not Cooperating --------------------------------------------------------- CARE Ratings said the rating for the bank facilities of SMT Machines (INDIA) Limited (SML) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.20 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated August 28, 2020, placed the rating(s) of SML under the 'issuer non-cooperating' category as SML had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. SML continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated July 14, 2021, July 24, 2021, August 3, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The entity, an ISO 9001:2008 certified company, was incorporated in June 1992 as a private limited company by the name of Aman Multilateral Private Limited, however, in December 1994, the constitution and name was changed to SMT Machines (India) Limited (SMI). The company is currently being managed by Mr. Surinder Kumar Mittal and Mr. Raman Mittal. SMI is engaged in manufacturing of capital goods like shearing machines, conveyors, straightening machines, mill stands, gear boxes, cooling bed, etc. which find their application in steel and iron rolling mills at its manufacturing plant located in Mandi Gobindgarh, Punjab. SOUTHERN FUEL: Insolvency Resolution Process Case Summary --------------------------------------------------------- Debtor: Southern Fuel Ltd SF No. 108/2 Saravanampatti Road Vellakinar, Coimbatore TN 641029 Insolvency Commencement Date: September 28, 2021 Court: National Company Law Tribunal, Chennai Bench Estimated date of closure of insolvency resolution process: March 27, 2022 Insolvency professional: Tharuvai Ramachandran Ravichandran Interim Resolution Professional: Tharuvai Ramachandran Ravichandran G3, Block 2, Shivani Apts 40, East Coast Road Thiruvanmiyur Chennai 600041 E-mail: trravichandran@yahoo.com Last date for submission of claims: October 15, 2021 SREI INFRA: Promoters Move Bombay HC Over RBI Insolvency Action --------------------------------------------------------------- The Economic Times of India reports that SREI Group promoters on Oct. 6 moved the Bombay High Court challenging Reserve Bank of India's decision to supersede the board of two group companies, in preparation for sending them to bankruptcy courts. According to the report, Srei group promoters are seeking stay on any insolvency proceedings at group companies Srei Infrastructure Finance Ltd and Srei Equipment Finance Ltd, whose board the regulator sacked and appointed an administrator. The promoters are also seeking stay on the appointment of the administrator, ET relates. On October 4, the banking regulator superseded the board of directors of Kolkata-based Srei Infrastructure Finance and Srei Equipment Finance and said that it will initiate insolvency proceedings with the National Company Law Tribunal (NCLT), ET reports. The RBI move makes Srei the second non-bank lender to be referred to the bankruptcy courts after DHFL. ET relates that the RBI cited governance concerns and defaults by the company and appointed Rajneesh Sharma, former chief general manager, Bank of Baroda as an administrator of the company. "In exercise of the powers conferred under Section 45-IE (1) of the Reserve Bank of India Act, 1934, the Reserve Bank has today superseded the Board of Directors of Srei Infrastructure Finance Limited (SIFL) and Srei Equipment Finance Limited (SEFL), owing to governance concerns and defaults by the aforesaid companies in meeting their various payment obligations," the RBI had said. A consortium of lenders led by UCO Bank had classifying exposure to Srei group as non-performing. In June 2021, Srei companies reported to the exchanges that the RBI inspection had flagged loans worth INR8,576 crore as related party loans. These accounted for nearly 30% of the group’s consolidated debt of INR28,700 crore. Overall, the group has a debt of over INR35,000 crore, ET discloses. SREI Infrastructure Finance Ltd. is a non-banking financial institution. The company has three principal lines of business in financing: infrastructure equipment finance, infrastructure projects finance and renewable energy product finance. Infrastructure equipment finance is the largest business division of the Company. SUBRAMANYESWARA POLYMERS: CARE Cuts Rating on INR12cr Loan to B --------------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Sri Subramanyeswara Polymers (SSP), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 12.00 CARE B; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category and Revised from CARE B+; Stable Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated September 28, 2020, placed the rating(s) of SSP under the 'issuer non-cooperating' category as SSP had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. SSP continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated August 14, 2021, August 24, 2021, and September 3, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings assigned to the bank facilities of SSP have been revised on account of non-availability of requite information. Kurnool (Andhra Pradesh) based Sri Subramanyeswara Polymers (SSP) is a partnership concern and was established in the year 2007 by Mr. G. Suryanarayana Reddy along with his family members.. SSP is engaged in manufacturing of PP Woven Sacks in different sizes and colors as per customer specifications. The product finds its application in business segments like food grains packaging and cement industry. The firm currently has an installed capacity of manufacturing 84 million bags per annum. The day to day operations of the firm are taken care by the partners Mr. G. Suryanarayana Reddy, Mrs. G. Venkata Lakshmamma and Mr. G. Sudheer Reddy. UNIVERSAL ENTERPRISES: CARE Cuts Rating on INR5cr LT Loan to B- --------------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Universal Enterprises (UE), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 5.00 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category and Revised from CARE B; Stable Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated September 21, 2020, placed the rating(s) of UE under the 'issuer non-cooperating' category as UE had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. UE continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated August 7, 2021, August 17, 2021 and August 27, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings have been revised on account of non-availability of information. Nainital, Uttarakhand based Universal Enterprises (UE) is a proprietorship firm and was incorporated in 20 11, by Mrs. Deepa Agarwal who is a post graduate by qualification. It is a full-fledged turnkey solution provider for all information and technology solutions and products such as interactive digital board, panels, multimedia projectors, visualizers, digital teaching solution that are used in schools, colleges and universities. Further the firm also deals in providing CCTV solutions, body worn cameras which are used for on field patrolling. The overall operations of the firm are managed by Mrs. Deepa Agarwal. UNNAT FEEDS: CARE Keeps B- Debt Rating in Not Cooperating --------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Unnat Feeds Private Limited (UFPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 11.81 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated August 20, 2020, placed the rating(s) of UFPL under the 'issuer non-cooperating' category as UFPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. UFPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated July 6, 2021, July 16, 2021, July 26, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. Incorporated in August-2009, Unnat Feeds Private Limited (UFPL) is promoted by Mr. Ranpal Dhanda, Mr. Mahipal Singh Dhanda, Mr. Harpal Singh Dhanda and Mr. Tara Chand. The company is engaged in the manufacturing of nutritionally balanced formulation of animal feed for different phases of growth and reproduction of better quality chicken, at its plant located at Panipat, Haryana, having an installed capacity of 200 tonnes as of March 31, 2016. VASUDEV KHANDSARI: CARE Keeps B- Debt Rating in Not Cooperating --------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Vasudev Khandsari Udyog (VKU) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 4.00 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated October 1, 2020, placed the rating(s) of VKU under the 'issuer non-cooperating' category as VKU had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. VKU continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated August 17, 2021, August 27, 2021, September 6, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Narsinghpur (Madhya Pradesh) based Vasudev Khandsari Udhyog (VKU) is a partnership concern formed in April, 2019 by Mr. Mr. Vivek Mahajan, Mr. Vinod Nema and Mr. Sanjay Gupta sharing profit and loss in the ratio equally. VKU was established with an aim to manufacture Jaggery, and Khandsari with total crushing capacity of 500 Tons of cane per day (TCD). The Plant facility of the firm is located in Narsinghpur district of Madhya Pradesh. It will procure sugarcane from the local farmers of Narsinghpur. The project was started in April 2019 and envisaged to be completed till 1st week of December 2019. The total cost of project was INR4.75 crore and to be funded through term loan of INR2.75 crore and promoter's fund of INR2.00 crore. ================= I N D O N E S I A ================= SOECHI LINES: Fitch Withdraws 'B' IDR for Commercial Reasons ------------------------------------------------------------ Fitch Ratings has affirmed Indonesia-based tanker operator PT Soechi Lines Tbk's (Soechi) Long-Term Issuer Default Rating (IDR) at 'B' with a Stable Outlook. The rating on the 8.375% US dollar senior unsecured notes due 2023 has been affirmed at 'B-' with a Recovery Rating of 'RR5'. The notes were issued by Soechi's wholly owned subsidiary, Soechi Capital Pte. Ltd., and guaranteed by Soechi and all its operating subsidiaries. Fitch has simultaneously withdrawn the IDR and the rating on the notes. Soechi's rating is underpinned by its position as a major tanker operator in the domestic market, which has protection from foreign competition, and revenue visibility due to steady demand from its key customer, PT Pertamina (Persero) (BBB/Stable). These strengths are significantly offset by the old age and small size of its fleet, and sustained EBITDA losses at its shipyard. Soechi's EBITDA was weaker than Fitch's expectations in 2020 due mainly to a large loss at its shipyard and its funds from operations (FFO) adjusted net leverage ratio was higher-than-expected at 5.0x. Soechi has managed to reduce costs and Fitch estimates its leverage will decline and remain at around 4.0x over the next three years, despite a pick-up in capex. The company needs to address the maturity of its US dollar bonds in early 2023; however, Fitch expects Soechi to tap into its existing banking relationships to secure additional funding for bond repayment and finalise plans within the next six months. Fitch has chosen to withdraw the ratings for commercial reasons. KEY RATING DRIVERS Strong Shipping Business Fundamentals: Soechi's fleet capacity under time-charter contracts was sustained at a high level of 98% at end-June 2021 (end-June 2020: 98%). The average duration of the time-charter contracts, weighted by capacity, was less than two years, but contracts are often renewed. Soechi is the one of the largest independent tanker operators in a fragmented domestic shipping industry with many small players. Industry participants have protection from foreign competition through cabotage laws for domestic transportation - which mandate the use of Indonesia-flagged vessels and limit foreign ownership to 49% in joint ventures. Domestic tanker demand is likely to continue growing over the longer term, driven by increasing fuel consumption. These market characteristics also result in relatively stable day-rates. Shipyard Remains a Drag: Soechi's shipyard, which has struggled to earn new shipbuilding and ship-repair contracts, saw its revenue drop sharply and the EBITDA loss, as per Fitch's estimates, widen sharply to around USD14 million in 2020 (2019: USD2 million). The company has managed to cut costs based on 1H21 financials, but Fitch expects EBITDA losses at the shipyard to be sustained over the next three years due to limited revenue. Soechi expects to deliver an under-construction ship in 4Q21 and has no more shipbuilding orders. However, Fitch has assumed Soechi will continue to earn flat revenues from 2022 with the help of further contracts, potentially from the government. Old Fleet, Small Size: The average age of Soechi's fleet (weighted by capacity) is 21 years, against a typical useful ship life of 30 years. The company's fleet age matches its strategy of operating older ships, which is the norm in Indonesia's market. However, older vessels usually earn shorter time-charter contracts than more recently constructed vessels. In addition, they are generally costlier to maintain and are subject to lower utilisation rates due to more maintenance required and more operational issues. Soechi's fleet of 30 ships as of June 2021 is also small relative to global peers. Customer Concentration, but Low Risk: Pertamina and its shipping subsidiary are Soechi's largest customers, accounting for 77% of revenue in 1H21. This exposes Soechi to the risk of Pertamina not renewing or granting contracts, or defaulting on payments. However, Fitch believes these risks are alleviated significantly by Soechi's long-standing relationship with Pertamina (Soechi's predecessor companies have been contracted by Pertamina since 1981), Pertamina's investment-grade credit profile, and Soechi's strong market position and capex policy, which is tied to the likelihood of new contracts. Higher Capex Likely: Soechi has not acquired any vessels since 2020, focusing instead on using free cash flow (FCF) to increase its cash balance and cut net debt. The buyback of the US dollar notes at a discount has also allowed the company to reduce outstanding debt. However, Fitch expects Soechi to resume fleet growth from 2022 after four years of capacity contraction, which is likely to result in negative FCF and push its FFO adjusted net leverage ratio to above 4.0x by 2023, from 3.5x in 2021. Parent-Subsidiary Linkage Assessment: Fitch assesses overall linkages between Soechi and the parent, PT Soechi Group (PT SG), which holds a 79.9% stake, as weak based on weak legal and moderate operational ties. Fitch therefore assesses Soechi based on its Standalone Credit Profile (SCP). Fitch assesses the parent, which has a much smaller shipping fleet and EBITDA than Soechi, to have a weaker credit profile. There are no guarantees from Soechi to PT SG or cross-default clauses covering debt at the parent. There are no loans to the parent, and dividends and related-party transactions are relatively small. There are also some checks on related-party transactions under the local listing regulations and the US dollar bond indenture. Potential Rating Constraint: Soechi's rating may be affected if PT SG's SCP deteriorates significantly, as Soechi's rating will be constrained to two notches above the consolidated credit profile, including PT SG, as per Fitch's criteria. DERIVATION SUMMARY Soechi's rating can be compared with that of Russia-based PAO Sovcomflot (SCF, BBB-/Stable), whose rating benefits from a one-notch uplift from its SCP of 'bb+' due to links to the parent, Russia (BBB/Stable). SCF is one of Russia's largest shipping companies and a global leader in maritime transportation of hydrocarbons. SCF's business profile benefits from servicing a diversified customer base of large international and Russian oil and gas companies. SCF's EBITDAR in 2020 was more than 15x that of Soechi's and its fleet is also fairly young with an average age of 12 years. SCF has a significantly stronger business profile than Soechi and its leverage and coverage metrics in 2020 were better. This justifies SCF's higher rating. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: -- Soechi's deadweight tonnage to increase at a CAGR of 3% over 2021-2024; -- Tanker day-rates to stay flat over 2021-2024; -- Average EBITDA margin for shipping segment of 48% over 2021- 2024 (2020: 54%); -- EBITDA loss at shipyard of USD5 million in 2021, narrowing to USD3 million by 2023; -- Average annual capex, including upfront docking charges, of USD45 million in 2021-2024 (2020: USD8 million). The recovery analysis assumes that Soechi would be liquidated in case of bankruptcy. Fitch has also assumed a 10% administration claim. Liquidation Approach -- Fitch's liquidation value of around USD250 million lower than its previous assessment of around USD275 million and includes Fitch's estimate of recoveries from Soechi's current assets related to working capital and fixed assets related to the shipyard, in addition to its shipping fleet. Fitch has valued the shipping fleet based on an extrapolation of Soechi's latest sale of its 105,000 DWT tanker for USD8 million in 2Q21. Most of the remaining value is attributable to the land for Soechi's shipyard. -- Soechi had secured bank loans of USD210 million as of 30 June 2021. It also had USD57 million of US dollar senior unsecured notes outstanding. -- The debt waterfall results in a recovery of 25% for the note holders, corresponding to a Recovery Rating of 'RR5'. Therefore, the US dollar notes have been notched down by one notch from Soechi's IDR. RATING SENSITIVITIES No longer relevant, as the ratings have been withdrawn. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. LIQUIDITY AND DEBT STRUCTURE Manageable Liquidity, Some Risk: Soechi had total debt of USD267 million as of end-June 2021, compared with cash (included cash reported as restricted) of USD58 million. Of the total debt, USD31 million is due in 2022 and USD90 million, including USD57 million of US dollar notes outstanding, is due in 2023. Soechi is working to secure additional financing from banks to repay its outstanding bonds and Fitch expects the company to successfully conclude negotiations with banks within the next six months, helped by its existing relationships and operating profile. Fitch thinks the company should be able to address its remaining debt maturities over the next three years, by forgoing discretionary capex in case it is unable to secure new loans, unless the debt assumed for refinancing the US dollar notes has a steep amortisation schedule. ISSUER PROFILE Soechi is a major private tanker owner and operator in Indonesia, with a fleet of 30 ships as of end-June 2021. SUMMARY OF FINANCIAL ADJUSTMENTS Material non-standard financial statement adjustments include: -- Cash kept as collateral for loan facilities and for US dollar bonds' interest reserve account, but reported as "restricted", has been classified as readily available as it is usable for debt servicing (2020: USD12.7 million); -- Docking expenses, which are amortised after incurrence, have been added back to EBITDA (2020: USD5.6 million). Cash expense for docking has been deducted from capex and added to operating cash flow (2020: USD5.6 million); -- "Unbilled revenues" and "estimated earnings in excess of billings on contracts" have been included in working capital because of their conceptual similarity to trade receivables. Advances and prepaid expenses have also been included in working capital. However, financing and tax-related accrued expenses have been excluded from working capital; -- Unamortised debt transaction costs have been added back to debt (2020: USD3.2 million). ESG CONSIDERATIONS Soechi has an ESG Relevance Score of '4' for Management Strategy. The company made a large investment in its shipyard business but earnings generation has been significantly weaker than Fitch's and management's expectations. This indicates some weakness in management strategy development and implementation, which has a negative impact on the credit profile, and is relevant to the rating in conjunction with other factors. Further aggressive growth spending remains a risk to Soechi's credit profile. Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. ===================== N E W Z E A L A N D ===================== OPTIONS TRADING: SFO Opens Investigation Into Firm and Director --------------------------------------------------------------- The New Zealand Herald reports that the Serious Fraud Office (SFO) has opened an investigation into a failed investments firm and its director after a complaint from the company's liquidator. Options Trading and Investments NZ Limited and Tiavare Richard Curtis Joseph are now facing an official probe by the financial crime and corruption agency, a statement by the SFO confirmed on Oct. 5, the report relates. Anyone who has had dealings with Options Trading or its director, who is known in the community as Richard and Ritchie Wineera, and has information which could be relevant to the SFO's investigation was asked to contact optionstrading@sfo.govt.nz. No further comment was made by the often tight-lipped SFO while its investigation is under way, the Herald notes. Joseph did not immediately reply to requests for comment from the Herald. The Porirua company, incorporated in April 2015, purported to offer investment services to its clients. However, the Herald understands Options Trading investors grew concerned when payments were missed and found neither the director nor company was registered to provide financial advice or services after checking with the Financial Markets Authority. Waterstone Insolvency's Damien Grant was appointed as liquidator to the company by the High Court at Auckland last year, the Herald recalls. In his third report from July, Mr. Grant said he had lodged a complaint with the SFO "in relation to actions undertaken by the director of the Company". The report added Mr. Joseph has "failed to comply with statutory notices issued by the director to attend an interview under oath, provide the liquidator with information, and documents of the company". "As a consequence of this, the liquidator has filed proceedings in the High Court against the director of the company; the liquidator is in the process of obtaining subservice in relation to the above-mentioned legal proceedings," it reads. ================= S I N G A P O R E ================= EAGLE HOSPITALITY: Ready for Chapter 11 Plan After Settlement ------------------------------------------------------------- Leslie Pappas of Law360 reports that Eagle Hospitality Group has reached an agreement with prepetition lenders and unsecured creditors over funding of its Singapore affiliates, allowing the company to move forward on a restructuring plan that could wrap up its Chapter 11 by year's end, the parties told a Delaware bankruptcy judge Tuesday, October 5, 2021. The settlement with Bank of America NA and the Official Committee of Unsecured Creditors paves the way for Eagle Hospitality to put the finishing touches on the Chapter 11 plan and resolves their earlier objections about its timing. About Eagle Hospitality Group Eagle Hospitality Trust -- https://eagleht.com/ -- is a hospitality stapled group comprising Eagle Hospitality Real Estate Investment Trust ("Eagle H-REIT") 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 and/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, Inc., estimated $500 million to $1 billion in assets and liabilities as of the bankruptcy filing. The Debtors tapped PAUL HASTINGS LLP as bankruptcy counsel; FTI CONSULTING, INC., as restructuring advisor; and MOELIS & COMPANY LLC, as investment banker. COLE SCHOTZ P.C. is the Delaware counsel. RAJAH & TANN SINGAPORE LLP is Singapore Law counsel, and WALKERS is Cayman Law counsel. DONLIN, RECANO & COMPANY, INC., is the claims agent. ********* 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 ***