/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/211025.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 Monday, October 25, 2021, Vol. 24, No. 207 Headlines A U S T R A L I A ELITE PRIME: First Creditors' Meeting Set for Oct. 29 GN RESIDENTIAL: Second Creditors' Meeting Set for Oct. 29 GREENSILL CAPITAL: Creditors Say Plan Releases Too Broad LGM NSW: Second Creditors' Meeting Set for Oct. 29 LIBERTY SERIES 2021-1: Moody's Ups Rating on Class F Notes to Ba3 PE CAPITAL: First Creditors' Meeting Set for Oct. 29 PINDAN GROUP: Administrators Tap Squire Patton Boggs as Advisors SALT LAKE POTASH: First Creditors' Meeting Set for Nov. 1 C H I N A CENTRAL CHINA REAL: Fitch Lowers LT FC IDR to 'B+', Outlook Neg. CENTRAL CHINA REAL: Moody's Lowers CFR to B1, Outlook Remains Neg. CHINA HUARONG: Wins Nod to Sell Bonds, Assets to Replenish Capital LUCKIN COFFEE: Coffee Sold at Higher Prices Helped Stem Losses SINIC HOLDINGS: Fitch Cuts IDR to 'RD' Then Withdraws All Ratings I N D I A ARVIND AND RAJAN: ICRA Keeps B+ Debt Rating in Not Cooperating C.G. CHANDRAPPA: ICRA Keeps B+ Debt Rating in Not Cooperating COMPULINK INDIA: Insolvency Resolution Process Case Summary DEEPTHY FENISHERS: ICRA Keeps B Debt Rating in Not Cooperating DREAM HOME: ICRA Moves B+ Debt Rating to Not Cooperating Category FAIRYLAND FOUNDATIONS: ICRA Keeps B+ Rating in Not Cooperating HAMSA MINERALS: ICRA Keeps D Debt Ratings in Not Cooperating KARNATAKA STATE: ICRA Reaffirms D Rating on INR500cr Term Loans KOYENCO AUTOS: Insolvency Resolution Process Case Summary LOF CONSTRUCTIONS: ICRA Keeps B Debt Rating in Not Cooperating NARENDRA SOLVEX: Insolvency Resolution Process Case Summary NESTOR HR SERVICES: Insolvency Resolution Process Case Summary NEW CONSOLIDATED: Insolvency Resolution Process Case Summary POWER CAR: Insolvency Resolution Process Case Summary PRATHAM MOTORS: ICRA Reaffirms B+ Rating on INR40cr LT Loan PRUDENTIAL HOTELS: Insolvency Resolution Process Case Summary RADIANT SOLAR: ICRA Keeps D Debt Ratings in Not Cooperating RAGHULEELA INFRAVENTURES: Insolvency Resolution Case Summary RAJAMAHAL INTERNATIONAL: ICRA Keeps B Rating in Not Cooperating RIGA SUGAR: Insolvency Resolution Process Case Summary ROCKLAND CERAMIC: ICRA Keeps D Debt Ratings in Not Cooperating RSJ DEVELOPERS: Insolvency Resolution Process Case Summary RUDRANI HEALTH: Insolvency Resolution Process Case Summary S. S. OVERSEAS: CARE Keeps D Debt Ratings in Not Cooperating S.S. AGRO: CARE Keeps D Debt Ratings in Not Cooperating Category SAGAR AUTOTECH: CARE Keeps D Debt Rating in Not Cooperating SARASWATI UDYOG: Insolvency Resolution Process Case Summary SAVAIR ENERGY: CARE Keeps D Debt Ratings in Not Cooperating SHEETAL AGRO: CARE Keeps D Debt Rating in Not Cooperating SMS CONSTRUCTIONS: ICRA Keeps B Debt Ratings in Not Cooperating SOUTHASIAN DIGITAL: Insolvency Resolution Process Case Summary SRINIVASA RICE: CARE Keeps C Debt Rating in Not Cooperating SWASTIK COLD: ICRA Keeps B Debt Ratings in Not Cooperating SWASTIK TRADELINK: ICRA Keeps D Debt Ratings in Not Cooperating TREE HOUSE: CARE Keeps D Debt Rating in Not Cooperating Category VEDAMATHA ENTERPRISES: ICRA Keeps D Rating in Not Cooperating VIKRAM INDIA: ICRA Withdraws D Rating on INR36cr LT Loan WALL CERA: ICRA Keeps B+ Debt Ratings in Not Cooperating Category WEST QUAY: CARE Keeps D Debt Ratings in Not Cooperating Category I N D O N E S I A INDIKA ENERGY: Moody's Affirms Ba3 CFR & Alters Outlook to Stable M A L A Y S I A SABAH FOREST: Receivers Seek Buyer for Assets S I N G A P O R E CENTRA JAYA: Court Enters Wind-Up Order DRILLSCAN ASIA: First Creditors' Meeting Set for Nov. 11 S O U T H K O R E A SSANGYONG MOTOR: Edison Motors likely to Emerge as Preferred Bidder - - - - - ================= A U S T R A L I A ================= ELITE PRIME: First Creditors' Meeting Set for Oct. 29 ----------------------------------------------------- A first meeting of the creditors in the proceedings of Elite Prime Pty Ltd will be held on Oct. 29, 2021, at 10:30 a.m. via virtual teleconference. Con Kokkinos of Worrells Solvency & Forensic Accountants was appointed as administrator of Elite Prime on Oct. 20, 2021. GN RESIDENTIAL: Second Creditors' Meeting Set for Oct. 29 --------------------------------------------------------- A second meeting of creditors in the proceedings of GN Residential Construction Pty Ltd has been set for Oct. 29, 2021, at 11:00 a.m. via virtual meeting technology. 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. 28, 2021, at 4:00 p.m. Morgan Kelly and Phil Quinlan of KPMG were appointed as administrators of GN Residential on Sept. 23, 2021. GREENSILL CAPITAL: Creditors Say Plan Releases Too Broad -------------------------------------------------------- Vince Sullivan of Law360 reports that Greensill Capital's official committee of unsecured creditors objected late Tuesday, October 19, 2021, to the supply chain financing firm's Chapter 11 plan, saying releases of nondebtor affiliates go too far without providing any compensation to creditors. The committee said it supports the plan as a whole but called proposed releases of Greensill's United Kingdom affiliates too broad because the bankruptcy estate would give up potentially valuable causes of action without being given any material consideration. About Greensill Capital Greensill is an independent financial services firm and principal investor group based in the United Kingdom and Australia. It offers structures trade finance, working capital optimization, specialty financing and contract monetization. Greensill Capital Pty is the parent company for the Greensill Group. Greensill began to unravel in March 2021 when its main insurer stopped providing credit insurance on US$4.1 billion of debt in portfolios it had created for clients including Swiss bank Credit Suisse. Greensill Capital (UK) Limited and Greensill Capital Management Company (UK) Limited filed for insolvency in Britain on March 8, 2021. Matthew James Byrnes, Philip Campbell-Wilson and Michael McCann of Grant Thornton were appointed as administrators. Greensill Capital Pty Ltd. filed insolvency proceedings in Australia. Matt Byrnes, Phil Campbell-Wilson, and Michael McCann of Grant Thornton Australia Ltd, were appointed as voluntary administrators in Australia. Greensill Capital Inc. filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 21-10561) on March 25, 2021. Jill M. Frizzley, director, signed the petition. In the petition, the Debtor listed assets of between $10 million and $50 million and liabilities of between $50 million and $100 million. The case is handled by Judge Michael E. Wiles. In the Chapter 11 case, the Debtor tapped Segal & Segal LLP as bankruptcy counsel, Mayer Brown LLP as special counsel, and GLC Advisors & Co., LLC and GLCA Securities, LLC as investment bankers and financial advisors. Matthew Tocks is the chief restructuring officer of the Debtor. The official committee of unsecured creditors is represented by Arent Fox LLP. Greensill Capital (UK) Limited filed a Chapter 15 petition (Bankr. S.D.N.Y. Case No. 21-11473) to seek U.S. recognition of its UK proceedings on Aug. 18, 2021. ALLEN & OVERY LLP, led by Laura R. Hall, is the Debtor's counsel in the Chapter 15 case. LGM NSW: Second Creditors' Meeting Set for Oct. 29 -------------------------------------------------- A second meeting of creditors in the proceedings of LGM NSW Pty Ltd, formerly Trading As PMG Stone, has been set for Oct. 29, 2021, at 10:00 a.m. via Zoom teleconferencing. 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. 28, 2021, at 4:00 p.m. Daniel Frisken of O'Brien Palmer was appointed as administrator of LGM NSW on Sept. 2, 2021. LIBERTY SERIES 2021-1: Moody's Ups Rating on Class F Notes to Ba3 ----------------------------------------------------------------- Moody's Investors Service has upgraded the ratings on seven classes of notes issued by two Liberty Series residential mortgage-backed securities (RMBS) transactions. The affected ratings are as follows: Issuer: Liberty Series 2020-4 Class C Notes, Upgraded to A1 (sf); previously on Dec 29, 2020 Definitive Rating Assigned A2 (sf) Class D Notes, Upgraded to Baa1 (sf); previously on Dec 29, 2020 Definitive Rating Assigned Baa2 (sf) Class E Notes, Upgraded to Ba1 (sf); previously on Dec 29, 2020 Definitive Rating Assigned Ba2 (sf) Class F Notes, Upgraded to Ba3 (sf); previously on Dec 29, 2020 Definitive Rating Assigned B2 (sf) Issuer: Liberty Series 2021-1 Class D Notes, Upgraded to Baa1 (sf); previously on Mar 31, 2021 Definitive Rating Assigned Baa2 (sf) Class E Notes, Upgraded to Ba1 (sf); previously on Mar 31, 2021 Definitive Rating Assigned Ba2 (sf) Class F Notes, Upgraded to Ba3 (sf); previously on Mar 31, 2021 Definitive Rating Assigned B2 (sf) RATINGS RATIONALE The upgrades were prompted by better-than-expected collateral performance to date, with a moderate level of loans in arrears and no losses to date. Both deals are currently within their two-year substitution period, whereby additional loans can be sold into the portfolio on a monthly basis, subject to substitution parameters and portfolio performance triggers being met. As such, there has been no principal repayments or increase in note subordination since closing. The fully-funded and non-amortising Guarantee Fee Reserve Account provides additional credit support of 0.3% of the current note balance to the deals. The account can be used to cover charge-offs against the notes and liquidity shortfalls that remain uncovered after drawing on the liquidity facility and principal. Liberty Series 2020-4 As of August 2021, 0.7% of the outstanding pool was 30-plus day delinquent. The deal has incurred no losses to date. Based on the observed performance to date and loan attributes, Moody's has lowered its expected loss assumption to 1.2% of the original note balance, compared with 1.5% at closing. Moody's has decreased its MILAN CE assumption to 8.1% from 9.0% at closing, based on the current portfolio characteristics. Liberty Series 2021-1 As of August 2021, 0.5% of the outstanding pool was 30-plus day delinquent, and 0.1% was 90-plus day delinquent. The deal has incurred no losses to date. Based on the observed performance to date and loan attributes, Moody's has lowered its expected loss assumption to 1.2% of the original note balance, compared with 1.3% at closing. Moody's has decreased its MILAN CE assumption to 7.3% from 8.2% at closing, based on the current portfolio characteristics. The transactions are Australian RMBS originated and serviced by Liberty Financial Pty Ltd, an Australian non-bank lender. A small portion of the portfolios consists of loans extended to borrowers with impaired credit histories or loans made on a limited documentation basis. The principal methodology used in these ratings was "Moody's Approach to Rating RMBS Using the MILAN Framework" published in December 2020. Factors that would lead to an upgrade or downgrade of the ratings: Factors that could lead to an upgrade of the ratings include: (1) performance of the underlying collateral that is better than Moody's expectations, and (2) an increase in credit enhancement available for the notes. Factors that could lead to a downgrade of the ratings include: (1) performance of the underlying collateral that is worse than Moody's expectations, (2) a decrease in credit enhancement available for the notes, and (3) a deterioration in the credit quality of the transaction counterparties. PE CAPITAL: First Creditors' Meeting Set for Oct. 29 ---------------------------------------------------- A first meeting of the creditors in the proceedings of PE Capital Funds Management Ltd will be held on Oct. 29, 2021, at 10:00 a.m. via virtual meeting technology. Bruno Anthony Secatore and Neil Cussen of Cor Cordis were appointed as administrators of PE Capital on Oct. 21, 2021. PINDAN GROUP: Administrators Tap Squire Patton Boggs as Advisors ---------------------------------------------------------------- Squire Patton Boggs said Restructuring and Insolvency partner Masi Zaki and his team recently advised Mr. Sam Freeman, Mr. Colby O'Brien and Mr. Vincent Smith of Ernst & Young, in their capacities as external administrators of a number of entities in the Pindan group of companies, on a successful refinance of the secured debt of BankWest Ltd across the Pindan group. The negotiations involved BankWest, Oxley Holdings Ltd, Pindan's external administrators and Committees of Inspection. The court approval processes took place in the Supreme Court of Western Australia. The transactions were novel in that they involved related Pindan entities in liquidation, voluntary administration, recently restructured via Deed of Company Arrangement or under the control of third party directors and shareholders, all transacting with outgoing and incoming financiers. The transactions facilitated key benefits across various pools of Pindan creditors including by: * Maximizing the financial outcome of the realization of secured properties via non-enforcement processes. * Releasing existing circulating and non-circulating secured assets from the outgoing financiers' security for the benefit of unsecured creditors. * Contracting on more commercially favourable terms including in respect of limited recourse and agreed forbearance periods with the incoming financier. * Securing the compromise or release of third party security interests registered against secured properties. The refinance paves the way for Pindan's external administrators to continue administering the various estates they control including in respect of companies which remain in administration. Pindan Group is a construction company based in Perth that services a number of Western Australian government projects. Samuel John Freeman, Vincent Smith and Colby O Brien of Ernst & Young were appointed as administrators of Pindan Group on May 18, 2021. SALT LAKE POTASH: First Creditors' Meeting Set for Nov. 1 --------------------------------------------------------- A first meeting of the creditors in the proceedings of: - Salt Lake Potash Limited; - Australia Salt Lake Potash Pty Ltd; - IRVE Holdings Pty Ltd; - Two Lake Holdings Pty Ltd; - SO4 Fertiliser Holdings Pty Ltd; - Piper Preston Pty Ltd; - IRVE Developments Pty Ltd; - Two Lake Developments Pty Ltd; and - SO4 Fertiliser Developments Pty Ltd will be held on Nov. 1, 2021, at 11:00 a.m. via virtual meeting. Martin Bruce Jones, Thomas Birch and Hayden White of KPMG were appointed as administrators of Salt Lake et al. on Oct. 20, 2021. ========= C H I N A ========= CENTRAL CHINA REAL: Fitch Lowers LT FC IDR to 'B+', Outlook Neg. ---------------------------------------------------------------- Fitch Ratings has downgraded the Chinese homebuilder Central China Real Estate Limited's (CCRE) Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'B+' from 'BB-'. The Outlook is Negative. Fitch has also downgraded the senior unsecured rating and the ratings on CCRE's outstanding US-dollar senior unsecured notes to 'B+' with a Recovery Rating of 'RR4', from 'BB-'. The downgrade reflects CCRE's weakened business profile and limited funding access; CCRE is highly reliant on offshore bonds for funding. The Negative Outlook reflects Fitch's view that there are uncertainties about the stability of the company's sales collection amid a slowdown in the property market, which may affect the business and financial profile. KEY RATING DRIVERS Weaker Scale than Peers: Fitch expects CCRE's attributable contracted sales to remain below CNY50 billion in 2021 (2020: CNY48 billion). Total contracted sales peaked in 2019, but demand in the Henan property market was weaker in 2020. Heavy flooding in Zhengzhou, the capital city of Henan, in July 2021 also hurt demand. CCRE's attributable sales scale in 2020 and 2021 year-to-date was lower than Fitch's 'BB-' rated peers, but similar to Fitch's 'B+' rated peers. Plans to Address Maturities: US dollar bonds made up 65% of CCRE's total debt at end-June 2021, but the maturities are spread out in November 2021, August 2022 and April 2023 onwards. CCRE's available cash as of end-June 2021 was sufficient to repay the USD400 million due in November 2021. It also redeemed a CNY1.5 billion onshore corporate bond in July. CCRE plans to repay its upcoming US-dollar bond maturities using internal cash, as the company has suspended new land acquisitions since July and plans to accelerate cash collections in 3Q21. Geographical Concentration Constrains Rating: CCRE's geographical concentration in Henan makes its operational profile riskier than peers with a more diversified land bank. Fitch does not expect CCRE to achieve multi-regional diversification in the near term. The company has been developing residential properties almost entirely in Henan for nearly 30 years, and had projects in 79 cities and over 200 projects in 1H21. CCRE's lower average selling price (ASP) of CNY7,000-8,000 a square metre (sqm), compared with peers' ASP of above CNY11,000/sqm, reflects its wide product exposure, including projects in smaller cities. High Leverage to Trend Down: Fitch expects CCRE's leverage - defined by net debt/net property assets - to trend down, after rising to 47% by end-June 2021 from 30% at end-2020. Cash collection weakened while it increased land acquisitions in 1H21. However, it expects to accelerate cash collections, and has suspended land acquisitions, to improve its liquidity and leverage by end-2021. CCRE maintained a moderate leverage profile of below 40% in 2018-2020, supported by its fast churn business model. Decent Return Efficiency: CCRE had a strong return efficiency of about 16% in 2020, among the highest in the industry, as its high capital turnover compensated for its low EBITDA margin. Fitch expects the return efficiency to normalise to the low-teens, after the spinoff of the high margin project management business in 1H21. The return efficiency at this level remains satisfactory among 'B+' peers. Adequate Land Bank: CCRE's attributable land bank of around 40.8 million sqm, with an estimated sales value of CNY200 billion, can sustain its sales scale for about three years. This takes into account that some large projects may take time to churn. Fitch estimates CCRE will incur cash outflow for land acquisitions of about CNY10 billion a year, in view of the weaker offshore funding access. Guarantees to Related Parties: CCRE provided a CNY500 million financial guarantee to Henan Hongdao for a five-year bank loan, which has been included in Fitch's leverage calculation. Henan Hongdao is owned by CCRE's chairman and largest shareholder, and Henan Hongdao's subsidiary is a supplier to CCRE. Fitch would consider negative rating action if there is an increase in related-party transactions and financial guarantees. DERIVATION SUMMARY CCRE's land bank concentration in Henan makes its business profile weaker than the majority of peers, which have more diversified land banks and less focus on low-tier cities. Its attributable sales scale of CNY45 billion-50 billion is in line with 'B+' peers, such as Redsun Properties Group Limited (B+/Stable). CCRE's business profile risk is mitigated by its higher return efficiency than peers due to its fast churn business model, and its leverage of around 47% as of 1H21 is also comparable with Redsun's around 45%. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: -- Total contracted sales of CNY60-70 billion a year in 2021-2023 (2020: CNY68 billion); -- Cash collection rate at about 80% in 2021-2023 (2020: 89%); -- Gross profit margin of about 15%-17% in 2021-2023 (2020: 19.9%); -- Annual land acquisition budget to be about 20%-30% of contracted sales proceeds in 2021-2023 (2020: 22%). Key Recovery Rating Assumptions -- The recovery analysis assumes that CCRE would be liquidated rather than reorganised as a going concern in bankruptcy, as the former yields a higher value. -- Fitch uses a multiple assumption tool to derive a 4x EBITDA multiple to estimate the going-concern value. -- Fitch has assumed a 10% administrative claim. Liquidation Approach The liquidation estimate reflects Fitch's view of the value of balance sheet assets that can be realised in sale or liquidation processes conducted during a bankruptcy or insolvency proceeding and distributed to creditors. -- 70% advance rate to accounts receivable; -- 50% advance rate to investment properties, as the rental yield was about 3%; -- 60% advance rate to land and buildings; -- 60% advance rate to adjusted net inventory to reflect CCRE's EBITDA margin of below 20%. In view of its fast churn business model and significant amount of contract liabilities, Fitch has applied a 15% discount to contract liabilities when calculating adjusted net inventory to reflect the around 15% gross profit margin. For joint venture (JV)-adjusted net inventory, Fitch calculates investment in JVs + amount due from JVs - amount due to JVs; -- CCRE's available cash is lower than its trade payables, and therefore Fitch gives 100% advance rate to its cash and allocate the trade and bills payables as first priority in the debt waterfall; -- The allocation of value in the liability waterfall results in recovery corresponding to 'RR4' for the senior unsecured offshore bonds. RATING SENSITIVITIES Factor that could, individually or collectively, lead to positive rating action/upgrade: -- The Outlook may be revised to Stable if the negative sensitivities are avoided. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- Leverage, measured by net debt/net property assets, sustained above 50%; -- Deterioration in liquidity or continued interruption to bond market access; -- Sustained deterioration in sales proceeds; -- Any increase in financial guarantees to related parties on non-property development businesses. 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: The company had available cash of CNY10.9 billion (excluding restricted cash of CNY5.6 billion) as of end-June 2021, sufficient to cover short-term debt of CNY8.5 billion. The company redeemed its onshore corporate bond of CNY1.5 billion in July. Its unrestricted cash appears to be able to cover its upcoming USD400 million maturity due on 8 November 2021. ISSUER PROFILE CCRE, established in 1992, is a leading residential developer in Henan province, with about 7.3% market share for its heavy asset business in 1H21. This excludes the asset light business. It is run by Central China Management Company, which was spun off as a separately listed entity from CCRE in 1H21. SUMMARY OF FINANCIAL ADJUSTMENTS Fitch's calculation of CNY47 billion in net property assets at end-June 2021 includes: CNY94 billion in properties under development; CNY13 billion in prepayment for acquisition of land; CNY7 billion in investment in JV and associates; CNY4 billion in investment properties; CNY7 billion in land and buildings; CNY1 billion due from JV and associates; CNY3 billion restricted cash on bills payables and presale deposits; less CNY61 billion in contract liabilities adjusted by its gross profit margin of around 15%; and CNY33 billion in payables and CNY7 billion due to JV and associates. Fitch includes the CNY7 billion in guarantees to JV and associates and related parties in net debt and net property assets. 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. CENTRAL CHINA REAL: Moody's Lowers CFR to B1, Outlook Remains Neg. ------------------------------------------------------------------ Moody's Investors Service has downgraded Central China Real Estate Limited's (CCRE) corporate family rating to B1 from Ba3 and the company's senior unsecured rating to B2 from B1. The outlook remains negative. "The downgrade reflects CCRE's weakened funding access, and reduced operational and financial flexibility amid challenging market conditions," says Kaven Tsang, a Moody's Senior Vice President. "The negative outlook reflects our expectation that CCRE's contracted sales will fall over the next 6-12 months and uncertainty over the company's ability to secure new funding at reasonable costs to reduce its reliance on offshore funding, given the tight funding environment for the property sector," adds Tsang. RATINGS RATIONALE CCRE's B1 CFR reflects its leading market position and long operating track record in Henan province. The rating also takes into consideration its adequate liquidity. However, CCRE's geographic concentration in Henan limits its operational flexibility and exposes it to regional economic and regulatory risks. The B1 CFR is also constrained by its weakened funding access to the offshore bond market and its high reliance on funding from this market. Moody's expects CCRE's contracted sales to decline over the next 6-12 months, driven by weaker homebuyer confidence amid tight funding conditions, though it has sizable saleable resources of around RMB68.8 billion in the second half (H2). These factors will weaken the company's operating cash flow and add pressure to the company's profit margin, which will weaken its credit metrics and liquidity. In the first nine months, the company's contracted sales declined 2.5% to RMB44 billion. CCRE's access to the offshore bond market, which is its major funding channel, has also weakened. Moody's expects the company to use its internal cash to repay some of its maturing debt. As such, the company's exposure to offshore funding will decline, but the repayment will reduce the funding available for its operations over the next 12-18 months. While CCRE's land bank is sufficient to support its operations over the next 3-4 years, the company's operational and financial flexibility will reduce if the weakness in debt capital markets persists. Nevertheless, CCRE's liquidity will remain adequate, reflecting Moody's expectation that its cash holdings and operating cash flow are sufficient to cover its short-term debt and committed land premiums over the next 12-18 months. Moody's expects CCRE's revenue to grow moderately, supported by its unrecognized contracted sales of RMB67.6 billion (at the consolidated level) as of June 30, 2021. However, its EBIT/interest coverage will trend lower over the next 12-18 months from 3.2x for the 12 months ended June 2021 because of Moody's expectation of an increase in the company's interest costs and a potential decline in profit margins over the period. CCRE's senior unsecured bond rating is one notch lower than its CFR because of the risk of structural subordination. This subordination risk reflects the fact that most of CCRE's claims are at the operating subsidiaries and have priority over claims at the holding company in a bankruptcy scenario. In addition, the holding company lacks significant mitigating factors for structural subordination. As a result, the expected recovery rate for claims at the holding company will be lower. In terms of environmental, social and governance (ESG) factors, Moody's has taken into account the concentration of CCRE's ownership in its controlling shareholder, Wu Po Sum, who had a 69.64% stake in the company as of June 30, 2021. The company's provision of financial guarantees to related parties will also increase its contingent liabilities and the risk of potential fund leakage. Moody's has also considered the presence of special committees — in particular, the audit and remuneration committees — that are chaired by independent nonexecutive directors to oversee corporate governance; and the application of the Listing Rules of the Hong Kong Stock Exchange and the Securities and Futures Ordinance in Hong Kong SAR, China in governing related-party transactions. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's could downgrade CCRE's ratings if the company's contracted sales, profitability, credit metrics or liquidity weaken. Deteriorating credit metrics that could trigger a rating downgrade include EBIT/interest coverage below 2.25x-2.5x, a gross profit margin below 17.5%-20.0% or unrestricted cash/adjusted short-term debt below 1.0x-1.25x. Any sign of an inability to refinance maturing debt, restore its offshore funding access or balance its exposure to different types of funding channels while maintaining reasonable funding costs could also strain the company's ratings. Downgrade pressure could also emerge if the company's contingent liabilities associated with JVs or the risk of providing funding support to JVs increases significantly. This could result from a significant deterioration in the financial strength and liquidity of its JV projects or a substantial increase in investments in new JV projects. An upgrade of CCRE's ratings is unlikely over the next 12 months, given the negative outlook. However, Moody's could change the outlook to stable if CCRE (1) secures new term funding, (2) restores its offshore funding access at reasonable funding costs, (3) balances its funding channels with lower reliance on offshore funding, and (4) maintains stable sales, profitability and credit metrics, and adequate liquidity through the next 12-18 months. The principal methodology used in these ratings was Homebuilding And Property Development Industry published in January 2018. Founded in 1992, Central China Real Estate Limited (CCRE) is a leading property developer in China's Henan province. As of June 30, 2021, the company's land bank totaled 56.21 million square meters in attributable gross floor area (GFA). The company was listed on the Hong Kong Stock Exchange in June 2008. CCRE's chairman, Wu Po Sum, owned a 69.64% stake in the company as of June 30, 2021. CHINA HUARONG: Wins Nod to Sell Bonds, Assets to Replenish Capital ------------------------------------------------------------------ Bloomberg News reports that China Huarong Asset Management Co.'s shareholders approved a plan to sell assets and raise capital at its long-delayed annual general meeting, two months after the financial giant unveiled a state-led rescue package that ended speculation over its fate. Shareholders passed resolutions to extend the period in which it can issue the remaining CNY10 billion ($1.6 billion) of its capital bond quota and grant the board a mandate to issue up to 20% of its outstanding shares, Huarong said in a filing on Oct. 21 after the meeting at its Beijing headquarters, Bloomberg relays. They also agreed to sell a 72% stake in its securities unit and raise as much as CNY70 billion by selling bonds on the nation's interbank market. According to the report, the firm secured a rescue package in August from some of the nation's biggest financial firms, including state-owned conglomerate Citic Group. After a long delay in releasing its 2020 earnings that had spooked investors, the firm revealed a record loss of $15.9 billion and a 85% plunge in shareholder equity. Its plight had become the biggest test in decades of the willingness in Beijing to support state-owned borrowers as overall debt defaults have hit records. If implemented, the strategic investment will replenish Huarong's capital, consolidate its foundation for sustainable operations and ensure it meets regulatory requirements, Huarong said in late August, Bloomberg relays. No details have been announced so far. Huarong may receive about CNY50 billion in fresh capital as part of an overhaul plan, people familiar with the matter have said, adding that control of the company would shift to Citic, though details were still being finalized and could change. Trading of Huarong shares will remain suspended, according to the statement. Bloomberg says Huarong's fate has been the subject of intense speculation, though it has so far paid all its bonds on time. In addition to its close link to China's central government and complex web of connections to other financial institutions, Huarong is also one of the country's biggest issuers of offshore bonds that sit in portfolios from Hong Kong to London and New York. Huarong bonds have recovered most of their value since late August. Its 5.5% note due 2025 trading above par as of Oct. 21, compared with a record low of 62.3 cents on the dollar in April. Together with China Cinda Asset Management Co., China Great Wall Asset Management Co. and China Orient Asset Management Co., the company was created to buy bad loans from banks in the aftermath of the late 1990s Asian financial crisis, when decades of government-directed lending to state companies had left China's biggest lenders on the brink of insolvency. The bad-debt firms later expanded beyond their original mandate, creating a labyrinth of subsidiaries to engage in other financial businesses and borrow billions from the bond market. Huarong was the most aggressive of the four under former Chairman Lai Xiaomin, who was executed in January for crimes including bribery. About China Huarong China Huarong Asset Management Co Ltd is a China-based company mainly engaged in asset management business. The Company operates through three segments. The Distressed Asset Management Operations segment is engaged in distressed asset management, debt equity swap asset management, the management of non-performing assets carried out by subsidiaries distressed asset management business conducted by its subsidiaries, distressed asset-based special situations investments business and distressed asset-based property development business. The Financial Services segment mainly includes securities and futures business, financial leasing business, banking services business and consumer finance business. The Asset Management and Investment Operations segment is mainly engaged in trust business, private equity funds business, financial investments business, international business, and other businesses. LUCKIN COFFEE: Coffee Sold at Higher Prices Helped Stem Losses -------------------------------------------------------------- Caixin Global reports that scandal-dogged Luckin Coffee Inc. said it managed to pare its losses by over CNY1 billion during the first half of this year, as it sold more coffee at higher prices, eased off on its previously breakneck expansion and increasingly tapped the franchise model. In its exchange filing on Oct. 21, the embattled coffee chain reported a net loss down 86% yearly to a CNY211.4 million ($33 million) deficit while the net revenue was 106% higher than previously reported figures at CNY3.18 billion. This upbeat performance comes after a scandal one year ago in which the firm was caught faking financial numbers, leading to its delisting from the Nasdaq, Caixin notes. About Luckin Coffee Luckin Coffee Inc., was a Xiamen, Fujian-based coffee chain. In July 2020, Luckin Coffee called in liquidators to oversee a corporate restructuring and negotiate with creditors to salvage its business, less than four months after shocking the market with a US$300 million accounting fraud, South China Morning Post said. The Company hired Houlihan Lokey as financial advisers to implement a workout with creditors. The start-up company also named Alexander Lawson of Alvarez & Marsal Cayman Islands and Tiffany Wong Wing Sze of Alvarez & Marsal Asia to act as "light-touch" joint provisional liquidators (JPLs) under a Cayman Islands court order, it said in a regulatory filing in New York. The move was in response to a winding-up petition by an undisclosed creditor. The Joint Provisional Liquidators of Luckin Coffee, Alexander Lawson of Alvarez & Marsal Cayman Islands Limited and Wing Sze Tiffany Wong of Alvarez & Marsal Asia Limited, on Feb. 5, 2021, filed a verified petition under chapter 15 of title 11 of the United States Code with the United States Bankruptcy Court for the Southern District of New York. The Chapter 15 Petition seeks, among other things, recognition in the United States of the Company's provisional liquidation pending before the Grand Court of the Cayman Islands, Financial Services Division, Cause No. 157 of 2020 (ASCJ) and related relief. SINIC HOLDINGS: Fitch Cuts IDR to 'RD' Then Withdraws All Ratings ----------------------------------------------------------------- Fitch Ratings has downgraded Chinese property developer Sinic Holdings (Group) Company Limited's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'RD' (Restricted Default) from 'C' as the company failed to repay its USD250 million senior notes due 18 October 2021. There is no grace period for the bond repayment. At the same time, Fitch has affirmed Sinic's senior unsecured rating and the ratings on its US dollar bonds at 'C' with a Recovery Rating of 'RR5'. Fitch has also withdrawn all the ratings. Fitch is withdrawing the ratings as Sinic has chosen to stop participating in the rating process. Therefore, Fitch will no longer have sufficient information to maintain the ratings. Accordingly, Fitch will no longer provide ratings or analytical coverage for Sinic. KEY RATING DRIVERS Non-Payment of Notes: Sinic's failure to make payment on the US dollar bonds due on 18 October 2021 is consistent with Fitch's definition of an 'RD' rating, as the company has experienced an uncured payment default on a material financial obligation, but has not yet entered into bankruptcy filings, administration, receivership, liquidation, or other formal winding-up procedures, and has not otherwise ceased operating. Cross Default with Notes: The non-payment of Sinic's October 2021 US dollar bonds triggered events of default on the company's other US dollar notes, which will become immediately due and payable if the bond trustee or holders of at least 25% in aggregate principal amount of the offshore notes declare so. ESG - Governance: Sinic has an ESG Relevance Score of '4' for Management Strategy because its repayment plans for its maturing capital-market debt have not been effectively executed. This has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Sinic has an ESG Relevance Score of '4' for Financial Transparency due to lack of communication over its repayment plans for its capital-market debt and the sharp fall in its bond and equity prices. This has a negative impact on the credit profile, and is highly relevant to the rating, resulting in the rating downgrade. DERIVATION SUMMARY Sinic's IDR has been downgraded to 'RD' in line with Fitch's definition of an uncured payment default but no initiation of bankruptcy filings, administration, receivership, liquidation, or other formal winding-up procedures as yet and continuity of business operations. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: -- Attributable contracted sales of CNY50 billion-60 billion a year in 2021-2023; -- Land premium accounting for 25% of sales proceeds in 2021, and 40% in 2022-2023 (2020: 39%); -- Land-bank life of 2.0-2.5 years during 2021-2023; -- Construction expenses accounting for 45%-55% of sales proceeds during 2021-2023 (2020: 40%). KEY RECOVERY RATING ASSUMPTIONS -- The recovery analysis assumes that Sinic would be liquidated in a bankruptcy rather than operate as a going-concern due to the asset-heavy nature of the homebuilding sector. -- Fitch assumes a 10% administrative claim. Liquidation Approach The liquidation estimate reflects Fitch's view of the value of balance-sheet assets that can be realised in a sale or liquidation process conducted during bankruptcy or insolvency proceedings and distributed to creditors. -- 40% haircut to adjusted net inventory, as Fitch anticipates potential for lower recovery from inventory, given higher probability of default; -- 93% haircut to investment properties, given low rental yield of less than 1%. Fitch estimates the value of Sinic's investment properties at CNY185 million based on a 6.5% rental yield assumption, or less than 10% of the CNY2.8 billion book value at end-1H21; -- 30% haircut to account receivables; -- 40% haircut to buildings under net property, plant and equipment; -- No haircut on restricted cash and a 0% advance rate for available cash because it is insufficient to cover minimum cash requirements or three months of attributable contracted sales (1H21: around CNY13 billion). The allocation of value in the liability waterfall results in recovery corresponding to an 'RR5' Recovery Rating for the senior unsecured debt. RATING SENSITIVITIES Not applicable 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. ISSUER PROFILE Sinic, which is based in Shanghai, is the largest property developer in Jiangxi province. It has expanded into the Yangtze River Delta region and the Greater Bay Area, as well as core cities in central and western China. SUMMARY OF FINANCIAL ADJUSTMENTS Fitch's calculation of adjusted property assets used in the leverage calculation includes: inventory, net deposits and prepayments for projects, investment properties, property, plant and equipment (land and buildings), land-use rights, investments in JVs, net amounts due from JVs, and net amount due from non-controlling interests, less contract deposits and deposits received. The value of investment properties is based on book value. ESG CONSIDERATIONS Sinic has an ESG Relevance Score of '4' for Management Strategy its repayment plans for its maturing capital-market debt have not been effectively executed. This has a negative impact on the credit profile, and is highly relevant to the rating, resulting the rating downgrade. Sinic Holdings (Group) Company Limited has an ESG Relevance Score of '4' for Financial Transparency due to lack of communication over its repayment plans for its capital-market debt and the sharp fall in its bond and equity prices. This has a negative impact on the credit profile, and is highly relevant to the rating, resulting the rating downgrade. 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 ========= ARVIND AND RAJAN: ICRA Keeps B+ Debt Rating in Not Cooperating -------------------------------------------------------------- ICRA has retained the ratings for the bank facilities of Arvind and Rajan Constructions in the 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]B+(Stable)/[ICRA]A4; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 2.50 [ICRA]B+ (Stable) ISSUER NOT Fund Based/CC COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Short Term- 2.50 [ICRA]A4 ISSUER NOT Non Fund Based COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Based in Bangalore, Arvind and Rajan Constructions (ARC) was established as a proprietorship firm in 2009. Mr. Arvind Gopalakrishnan, who is a civil engineer by profession, has experience of more than nine years in the field of construction. ARC is involved in the business of civil construction and takes up work related to construction of residential and commercial buildings, with its scope of work including civil, sanitary and electrical work as per the terms of the contract. The operations of the firm are confined to Bangalore and the firm has completed work for various reputed real estate developers. C.G. CHANDRAPPA: ICRA Keeps B+ Debt Rating in Not Cooperating ------------------------------------------------------------- ICRA has retained the ratings for the bank facilities of C.G. Chandrappa in the 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]B+(Stable)/[ICRA]A4; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 5.00 [ICRA]B+ (Stable) ISSUER NOT Fund Based/CC COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Short Term- 6.40 [ICRA]A4 ISSUER NOT Non Fund Based COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. C.G.Chandrappa., based in Bangalore, Karnataka is a proprietorship firm incorporated in 1980 and is involved in civil contractor work majorly in construction of roads, bridges and asphalting works. The firm's clientele comprises of government entities like PWD. The firm is registered as "Class 1 PWD Contractor", Karnataka. The areas of operations mainly limited in and around Karnataka. The firm over the years has executed many projects as a prime contractor as well as sub-contractor. The plant is located at Hennur, Bangalore with 60/90ton per hour manufacturing capacity. COMPULINK INDIA: Insolvency Resolution Process Case Summary ----------------------------------------------------------- Debtor: Compulink (India) Private Limited AVMS Premises, 4th Floor Shree Niwas House 27th Somani Marg Mumbai, MH 400001 Insolvency Commencement Date: September 30, 2021 Court: National Company Law Tribunal, Nagpur Bench Estimated date of closure of insolvency resolution process: March 29, 2022 Insolvency professional: Mrudula Brodie Interim Resolution Professional: Mrudula Brodie Flat No. A-403 Silver Estate Appt Raghukul Creation Manish Nagar Nagpur 440015 E-mail: camrudulkejdiwal@gmail.com cirp.compulink@gmail.com Last date for submission of claims: October 21, 2021 DEEPTHY FENISHERS: ICRA Keeps B Debt Rating in Not Cooperating -------------------------------------------------------------- ICRA has retained the ratings for the bank facilities of Deepthy Fenishers in the 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]B(Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 5.00 [ICRA]B (Stable) ISSUER NOT Fund Based COOPERATING; Rating continues Facilities to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Deepthy Fenishers is a partnership firm established in 1997 and is providing fabric processing services on job-work basis. The firm is located in Tirupur (Tamil Nadu) with capabilities for tubular and open width compacting. The firm was promoted by Mr. Subramaniam and currently has four partners. Mr. Subramaniam is the managing partner of the firm having experience of more than a decade in the textile industry. The firm caters to garment manufacturers located in and around Tirupur providing fabric processing services. DREAM HOME: ICRA Moves B+ Debt Rating to Not Cooperating Category ----------------------------------------------------------------- ICRA has moved the ratings for the bank facilities of Dream Home Carpets Private Limited to the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]B+(Stable)/[ICRA]A4 ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based 13.00 [ICRA]B+ (Stable) ISSUER NOT Packing Credit COOPERATING; Rating Moved to the 'Issuer Not Cooperating' category Fund-based- 10.00 [ICRA] A4 ISSUER NOT Foreign Bill COOPERATING; Rating Moved to Purchase the 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. DHCPL was incorporated in 2013 by Mr. Mohit Jain and Mr. Vinay Jain. The company manufactures handwoven and hand-tufted carpets, rugs (leather and fabric), bathmats, floor cushion, bean bags, etc. However, most of the revenues come from carpet sales, primarily to overseas buyers. FAIRYLAND FOUNDATIONS: ICRA Keeps B+ Rating in Not Cooperating -------------------------------------------------------------- ICRA has retained the ratings for the bank facilities of Fairyland Foundations Private Limited in the 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]B+(Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 10.00 [ICRA]B+ (Stable) ISSUER NOT Unallocated COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Fairyland Foundation Private Limited is a real estate company operating in Tamil Nadu. Fairyland was started as a partnership concern by Mr. T.N. Vijaykumar and Mr. S. Saravanan in 2000 and later in 2005 it was converted into a private limited company. The company has till date completed 21 residential projects with a total saleable area of ~5.8 Lakh sq ft. All the projects are located in Chennai and Coimbatore in Tamil Nadu. The construction for the projects is completed in-house and Mr. T. N. Vijayakumar who is a civil engineer with more than 15 years in the construction industry heads the execution team. Mr. S. Saravanan has been in the real estate industry for more than 12 years and he leads the marketing team and is also in charge of identification of new projects for development. HAMSA MINERALS: ICRA Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------ ICRA has retained the ratings for the bank facilities of Hamsa Minerals & exports in the 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 3.50 [ICRA]D; ISSUER NOT COOPERATING; Fund based/CC Rating Continues to remain under 'Issuer Not Cooperating' Category Long-term– 3.35 [ICRA]D; ISSUER NOT COOPERATING; Fund based/TL Rating Continues to remain under 'Issuer Not Cooperating' Category Short Term- 10.00 [ICRA]D; ISSUER NOT COOPERATING; Fund Based Rating continue to remain under the 'Issuer Not Cooperating' category Long Term/ 2.35 [ICRA]D/[ICRA]D; ISSUER NOT Short Term- COOPERATING; Rating continue Unallocated to remain under the 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Incorporated in 2004, Hamsa Minerals & Exports is a partnership firm engaged in granite quarrying and exporting dressed granite blocks to countries such as China, Hong Kong, Taiwan and Switzerland. Initially, the firm was into iron ore exports business and subsequently got 100 per cent EOU (Export Oriented Unit) certificate from Vishakhapatnam SEZ to export squared and dressed granite blocks. KARNATAKA STATE: ICRA Reaffirms D Rating on INR500cr Term Loans --------------------------------------------------------------- ICRA has reaffirmed ratings on certain bank facilities of Karnataka State Road Transport Corporation (KSRTC), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based- Term Loans 500 [ICRA]D; reaffirmed Rationale The rating reaffirmation reflects the delays and irregularities in servicing of long-term loans by KSRTC since May 2021, which continued in subsequent months and were also witnessed in the last three months. Nonetheless, the entity remains important to the state government as a provider of passenger road transport services, which is also reflected by the support received, though not timely, from the Government of Karnataka (GoK) in the recent past. As per ICRA's Policy on Default Recognition, to qualify for an upgrade to within non-investment grade, generally at least 90 days should have passed from the date of regularization of the most recent default. KSRTC's financial performance is likely to remain weak in FY2022 owing to bleak performance in the first quarter of FY2022, impeded resumption of operations post relaxation in lockdown and significant increase in fuel prices. As per ICRA estimates, the corporation would continue to record large operating losses, which would keep it liquidity position stretched in the near to medium term. Consequently, KSRTC's dependence on the state government is likely to increase in order to meet its critical expenses such as salaries and fuel. Moreover, large fresh borrowings without any significant increase in its revenues would stretch the cash flows and strain the liquidity position of KSRTC even further. Key rating drivers and their description Credit strengths * Strategic importance to the state government; financial flexibility as state-owned entity: The KSRTC is owned by the GoK (87% shareholding) and the Government of India (17% stake). The corporation has strong financial linkages with the state government, with the GoK part-funding a considerable portion of its capital expenditure program through grants. Moreover, in the recent past, the GoK has also released revenue grants in the form of advance subsidies for payment of salaries to the KSRTC's employees on account of the complete shutdown in operations due to the Covid-19 pandemic, albeit with some delay recently. Credit challenges * Delays in debt servicing: The corporation started delaying the repayment of its long-term loans from May 2021 owing to complete shutdown of traffic operations because of employee strike and the subsequent strict lockdown imposed by the Government of Karnataka (GoK) from the last week of April 2021 to check the second wave of the Covid-19 pandemic. While with gradual resumptions of operations, the traffic revenue improved, the corporation continued to delay repayment of its term loans during the last three months due to continuing operating losses and poor liquidity. * Impeded resumption of operations post lockdown in Q1FY2022; sharp increase in fuel prices is likely to widen the losses further during FY2022: Owing to the second wave of the Covid-19 pandemic, the GoK has announced a state-wide lockdown from the last week of April 2021, which impacted the traffic revenues of KSRTC. Subsequent to the gradual relaxation of restrictions by the state government, the operations of the corporation have resumed, however, with relatively lower passenger load. Additionally, the fuel prices have increased significantly, resulting in high cost of operations. Consequently, the corporation continues to make large operating losses leading to poor liquidity position. ICRA notes that the one-time revenue support from the GoK to meet its critical fixed expenses like salaries, provides comfort to an extent. However, as per ICRA estimates, the KSRTC's liquidity position is likely to remain stretched in the near term on account of large operating loses owing to high fuel prices during FY2022, high repayment obligations and weak traffic revenues. Liquidity position: Poor The corporation has substantial annual debt repayments of INR93.36 crore due in FY2022. Its liquidity position remains poor, as reflected by the delays in the repayment of long-term loans during the current fiscal. Rating sensitivities Positive factors - Regularisation of debt servicing on a sustained basis may lead to a rating upgrade. Negative factors – Not Applicable The KSRTC was established in August 1961 under the provisions of the Road Transport Corporation (RTC) Act, 1950 to provide adequate, efficient and economic passenger road transport services in Karnataka. The operational jurisdiction of the KSRTC (headquartered in Bengaluru) covers 17 districts in southern Karnataka, with most of its operations spanning across tier-II and tier-III cities, and rural regions. Additionally, it provides connectivity to various other cities and towns in the adjoining districts/state through inter-state operations. As of March 31, 2021, the KSRTC had a fleet strength of 8,272 buses, operating about 7,486 schedules daily through 83 depots, two regional workshops and 37,202 personnel. KOYENCO AUTOS: Insolvency Resolution Process Case Summary --------------------------------------------------------- Debtor: Koyenco Autos Private Limited 53 C, Koyenco House West Hill PO Kozhikode Kerala, PIN 673005 Insolvency Commencement Date: October 6, 2021 Court: National Company Law Tribunal, Ernakulam Bench Estimated date of closure of insolvency resolution process: April 4, 2022 Insolvency professional: Sankar P Panicker Interim Resolution Professional: Sankar P Panicker Panicker and Panicker Advocates Jaikunj, Chittoor Road Koci 682035 E-mail: sankarpanicker@gmail.com cirp.koyenco@gmail.com Last date for submission of claims: October 20, 2021 LOF CONSTRUCTIONS: ICRA Keeps B Debt Rating in Not Cooperating -------------------------------------------------------------- ICRA has retained the ratings for the bank facilities of LOF Constructions in the 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]B(Stable)/[ICRA]A4; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 3.50 [ICRA]B (Stable) ISSUER NOT Fund Based/CC COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Short Term- 2.50 [ICRA]A4 ISSUER NOT Non Fund Based COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. LOF Constructions was started as a proprietorship concern by Mr. P. M. Mohammed Kunhi and later converted into a partnership firm by including his family members. In the past, the firm has executed civil construction contracts for roads, culverts and bridges for Public Works Department (PWD) of Kerala and Karnataka, Public Health Engineering Department (PHED) and other private players. The operations of the entity are concentrated in North Kerala and South Canara and Shimoga districts of Karnataka. NARENDRA SOLVEX: Insolvency Resolution Process Case Summary ----------------------------------------------------------- Debtor: Narendra Solvex Private Limited Deegee House, Jaistambh Chowk Rallies Plot Amravati Maharashtra 444601 Insolvency Commencement Date: September 16, 2021 Court: National Company Law Tribunal, Raipur Bench Estimated date of closure of insolvency resolution process: March 15, 2022 Insolvency professional: Mr. Jagdish Kumar Interim Resolution Professional: Mr. Jagdish Kumar B56, Wallfort City Bhatagaon Ring Road No. 1 Raipur, Chhattisgarh 492001 E-mail: jkparulkar.ip@gmail.com cirpnarendrasolvex@gmail.com Last date for submission of claims: October 21, 2021 NESTOR HR SERVICES: Insolvency Resolution Process Case Summary -------------------------------------------------------------- Debtor: Nestor HR Services Private Limited SCO-18, 2nd Floor Sector-16, Faridabad Haryana 121003 Insolvency Commencement Date: September 20, 2021 Court: National Company Law Tribunal, Delhi Bench Estimated date of closure of insolvency resolution process: March 19, 2022 Insolvency professional: Alok Kaushik Interim Resolution Professional: Alok Kaushik G-105 Sai Baba Apartments Sector-9, Rohini Delhi 110085 E-mail: alok_kaush@yahoo.com cirp.nestor@gmail.com Last date for submission of claims: October 13, 2021 NEW CONSOLIDATED: Insolvency Resolution Process Case Summary ------------------------------------------------------------ Debtor: New Consolidated Construction Company Limited Registered office: Rahimtola House 7 Homji Street Fort Mumbai, Maharashtra 400001 Other office: Marathon Innova B-1/101, 1st Floor Opp Peninsula Park Off Ganpatrao Kadam Marg Lower Parel (W) Mumbai 400013 Insolvency Commencement Date: October 7, 2021 Court: National Company Law Tribunal, Pune Bench Estimated date of closure of insolvency resolution process: April 5, 2022 (180 days from commencement) Insolvency professional: Pramod Kumar Dokania Interim Resolution Professional: Pramod Kumar Dokania Tower 54, Flat 1101 Future Towers, Amanora Park Town Hadapsar Pune 411028 E-mail: ippramod.dokania@gmail.com Last date for submission of claims: October 21, 2021 POWER CAR: Insolvency Resolution Process Case Summary ----------------------------------------------------- Debtor: M/s Power Car India Private Ltd No. 2/398, Mount Ponamalle Road Iyyappanthangal Chennai 600056 Insolvency Commencement Date: September 3, 2021 Court: National Company Law Tribunal, Chennai Bench Estimated date of closure of insolvency resolution process: 180 days from commencement Insolvency professional: CA. V. Venkata Sivakumar Interim Resolution Professional: CA. V. Venkata Sivakumar No. 10/11, Dr. Subbarayan Nagar Main Road Kodambakkam, Chennai 600024 E-mail: vsk.insolvencyprofessional@ gmail.com Last date for submission of claims: September 18, 2021 PRATHAM MOTORS: ICRA Reaffirms B+ Rating on INR40cr LT Loan ----------------------------------------------------------- ICRA has reaffirmed ratings on certain bank facilities of Pratham Motors Private Limited (PMPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term– Fund-based TL 18.52 [ICRA]B+ (Stable); Reaffirmed Long term– Fund-based CC 40.00 [ICRA]B+ (Stable); Reaffirmed Long Term- Unallocated 14.48 [ICRA]B+ (Stable); Reaffirmed Rationale The reaffirmation of the rating of PMPL takes into account its established market position as a dealer of Maruti Suzuki India Limited's (MSIL) passenger vehicles (PV) in the Bangalore region and its diversified revenue streams, as well as the extensive track record of the management in the auto dealership business. The ratings continue to factor in the strong brand recognition of its principal, MSIL, in India, and the continued market leadership of MSIL as the largest domestic passenger car manufacturer with 47% market share in FY2021. However, the ratings continue to remain constrained by the moderate financial performance of the company, with thin margins and weak return indicators as is typical in the dealership business. Moreover, scale of operations has deteriorated sharply over the past two fiscals to INR256.2 crore in FY2021 from INR487.6 crore in FY2019 due to slowdown in the automobile industry and the Covid-19 outbreak. Nevertheless, despite the moderation in revenues during FY2021, the company was able to improve operating profitability, supported by cost control measures, discontinuation of sales to aggregators, and lower discounts. The ratings also factor in the company's exposure to the cyclical nature of the Indian PV industry and the intense competition among the dealers of various original equipment manufacturers (OEMs). The Stable outlook reflects ICRA's opinion that the company will continue to benefit from long-term demand prospects as an established dealer for MSIL's passenger vehicles. Key rating drivers and their description Credit strengths * Proven track record of PMPL as an authorized dealer of MSIL's PVs: The company has been an authorized dealer of MSIL's PVs since 2006. MSIL remains the market leader in the passenger car segment in India with a market share of 47.0% in FY2021. The healthy demand for MSIL's vehicles along with the company's proven track record and presence in the Bangalore market, supports its long-term growth prospects. * Extensive experience of promoters in auto dealership business: The promoters have been involved in the automobile dealership business in India since 1998. With 14 showrooms, 13 true value outlets and six service outlets in Bangalore, the company has a healthy presence in the Bangalore market. * Diversified revenue streams: In addition to revenues from the sale of new cars (70% of revenues in FY2021), the company's revenue stream comprises service income from workshops, sales of spares and accessories, pay-out from financiers and commission from insurance companies, which provides stability to its revenues to some extent. Sales of spares and service income drove 20.0% of the company's revenues in FY2021 against 15.5% in FY2020. Besides, it derived 7.1% of its operating income (OI) from the sale of used cars in FY2021. Credit challenges * Covid-19 and associated lockdowns impacted business prospects over FY2021 and Q1 FY2022; ongoing semi-conductor chip shortage issues likely to constrain growth momentum further: The company's revenues were adversely impacted in Q1 FY2021 and FY2022 by the lockdown imposed to contain the spread of the pandemic. Despite pick-up in sales post the lifting of lockdown in May 2020, the operating income of the company witnessed a steep decline of 37% in FY2021. Furthermore, revenue growth prospects for the current year also remain constrained by the ongoing semi-conductor shortage. Resolution of these challenges would remain critical for supporting overall growth prospects. * Intense competition from other MSIL dealers and dealers of other OEMs in the region: The dealership business is characterized by thin margins and low bargaining power of the dealer as margins on vehicles are determined by the principal. Further, its sales and profitability remain susceptible to intense competition from dealers of other OEMs in the region. * Exposure to cyclical nature of the Indian PV industry: The PV industry is cyclical in nature with higher demands during festive seasons and year ends. While the shift towards personal mobility from public transport in the pandemic scenario augurs well for the sector, headwinds persist. Such impediments include high fuel prices, the chip shortage and an inflationary environment, which impact first-time buyers as well as the supply chain. Liquidity position: Stretched The company's liquidity position is expected to remain stretched as it has high repayment obligations in FY2022 and FY2023. While the cash accruals from operations are expected to support to some extent, the company is likely to remain dependent on additional funding sources such as promoter funds or undrawn lines of credit over the near-to-medium term. The company's current ratio has also remained weak as reflected by 0.6 times in FY2021 (0.7 in FY2020). Rating sensitivities Positive Factors – ICRA could upgrade the ratings if the company is able to scale up operations and improve profitability. Additionally, the company's ability to correct the asset-liability mismatch and improve credit metrics, such as DSCR > 1.1 times on a sustained basis, could be considered favorably. Negative Factors – Negative pressure on the company's rating could arise if the scale of operations or margins deteriorate sharply, leading to further weakening of profitability and coverage metrics. Incorporated in 2002, PMPL, promoted by Mr. Shivy Bhasin, operates as an authorized dealer for MSIL in Bangalore. The company operates from 14 sales outlets located in and around Bangalore, with a focus in the southern region of Bangalore. Along with the fourteen sales outlets, the company has six service outlets, seven driving school outlets, thirteen True Value (pre-owned cars) outlets and one stockyard. The main showroom is located along the IT corridor area in South East Bangalore (Sarjapur) with sales, service, spares, True Value sales and Maruti Driving School (MDS) facilities (called as a '5S' facility). In FY2021, on a provisional basis, the company reported a net profit of INR1.5 crore on an operating income (OI) of INR256.2 crore compared to a net profit of INR4.9 crore on an OI of INR407.6 crore in the previous year. PRUDENTIAL HOTELS: Insolvency Resolution Process Case Summary ------------------------------------------------------------- Debtor: Prudential Hotels Private Limited No. 5, E-Block Local Shopping Centre Masjid Moth, Greater Kailash-II New Delhi 110048 Insolvency Commencement Date: October 1, 2021 Court: National Company Law Tribunal, Bench-VI, New Delhi Estimated date of closure of insolvency resolution process: March 30, 2022 (180 days from commencement) Insolvency professional: Rahul Jain Interim Resolution Professional: Rahul Jain 27/33, Ground Floor, Gali No. 9 Pandav Road, Vishwas Nagar Shadara, New Delhi 110032 E-mail: ca.rahuljain.2005@gmail.com cirp.prudentials@gmail.com Last date for submission of claims: October 20, 2021 RADIANT SOLAR: ICRA Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------- ICRA has retained the ratings for the bank facilities of Radiant Solar Private Limited in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA] D/[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 3.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category Long-term– 1.40 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Term Loan 'Issuer Not Cooperating' Category Short Term– 2.25 [ICRA]D; ISSUER NOT COOPERATING; Non Fund Based Rating Continues to remain under 'Issuer Not Cooperating' Category Long Term/ 2.35 [ICRA] D/[ICRA] D; ISSUER NOT Short Term- COOPERATING; Rating continues Unallocated to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. SSR Crest Engineers and Constructions Limited ("SSR") was established in the year 1999 by Mr Pavan reddy who is the managing director of the company. The operations of the company are taken care by Mr Naveen Reddy and Mr Kiran Kumar Reddy who are sons of Mr Pavan Reddy. The company operates as EPC contractor for R&B and PWD projects. The company has vast experience in Bridge and Culverts, Rail over bridge, dredging, engineering and fabrication works and holds registered special class status for Bituminous and Asphalt works in PWD and R&B departments of Telangana. The company is also a class I contractor with PWD, Karnataka. RAGHULEELA INFRAVENTURES: Insolvency Resolution Case Summary ------------------------------------------------------------ Debtor: Raghuleela Infraventures Private Limited One BKC, A Wing 1401 Plot No. C-66, G Block Bandra Kurla Complex Bandra (East) Mumbai Bandra Suburban 400051 Insolvency Commencement Date: October 6, 2021 Court: National Company Law Tribunal, Navi Mumbai Bench Estimated date of closure of insolvency resolution process: April 4, 2022 (180 days from commencement) Insolvency professional: Sujata Chattopadhyay Interim Resolution Professional: Sujata Chattopadhyay 710, Mayuresh Cosmos Sector 11, CBD Belapur Navi Mumbai 400614 E-mail: sujata@scassociates.co.in cirp.ripl@gmail.com Last date for submission of claims: October 20, 2021 RAJAMAHAL INTERNATIONAL: ICRA Keeps B Rating in Not Cooperating --------------------------------------------------------------- ICRA has retained the ratings for the bank facilities of Rajamahal International Pvt. Ltd. in the 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]B(Stable)/[ICRA]A4; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 5.00 [ICRA]B (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Cash Credit to remain under 'Issuer Not Cooperating' category Long Term/ 3.00 [ICRA]B(Stable)/[ICRA]A4; Short Term- ISSUER NOT COOPERATING; Unallocated Rating continues to remain Under 'Issuer Not Cooperating' Category Long Term/ 7.00 [ICRA]B(Stable)/[ICRA]A4; Short Term- ISSUER NOT COOPERATING; Interchangeable Rating continues to remain Not a sub Under 'Issuer Not Cooperating' limit-Others Category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Rajamahal International was established in the year 1991 and is primarily engaged in the trading of silk waste, fabrics, granites, TMT bars etc. The group is under the leadership of Mr. Aslam Pasha who has rich experience in mining and marketing activities. The company is based out of Koramangala, Bangalore. It has also established offices at Hospet, Sandur, and Vizag & Karwar to facilitate the export of various products. RIGA SUGAR: Insolvency Resolution Process Case Summary ------------------------------------------------------ Debtor: Riga Sugar Co. Ltd. Registered office: 14, Netaji Subhas Road 2nd Floor P.S. Hare Street Kolkata Factory address: Dhanuka Gram PO: Riga 843327 District: Sitamarhi Bihar Insolvency Commencement Date: October 8, 2021 Court: National Company Law Tribunal, Kolkata Bench Estimated date of closure of insolvency resolution process: April 6, 2022 Insolvency professional: Neeraj Jain Interim Resolution Professional: Neeraj Jain 4 Synagogue Street Suite # 205, 2nd Floor Facing Brabourne Road Kolkata 700001 E-mail: reachneerajjain@gmail.com cirp.rigasugar@gmail.com Last date for submission of claims: October 22, 2021 ROCKLAND CERAMIC: ICRA Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- ICRA has retained the ratings for the bank facilities of Rockland Ceramic LLP in the 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based- 5.00 [ICRA]D; ISSUER NOT COOPERATING; Cash Credit Rating Continues to remain under 'Issuer Not Cooperating' Category Fund Based- 12.45 [ICRA]D; ISSUER NOT COOPERATING; Term Loan Rating Continues to remain under 'Issuer Not Cooperating' Category Non-Fund- 2.40 [ICRA]D; ISSUER NOT COOPERATING; based–Letter Rating continue to remain under of Credit the 'Issuer Not Cooperating' category Long term/ 0.15 [ICRA]D/[ICRA]D; ISSUER NOT Short term COOPERATING; Rating continue Unallocated to remain under the 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Incorporated in 2001, Rockland Ceramic LLP (STPL) is engaged in trading of grey cloth, chemicals, paper, steel and cement. STPL is also a distributor of LG mobile phones and Reliance 'Jio' in Gujarat state. The company is promoted by Mr. Sandeep Jain and his family members. RSJ DEVELOPERS: Insolvency Resolution Process Case Summary ---------------------------------------------------------- Debtor: RSJ Developers Private Limited 5 E-Block Local Shopping Centre Masjid Moth, Greater Kailash II New Delhi 110048 Insolvency Commencement Date: October 6, 2021 Court: National Company Law Tribunal, New Delhi Bench Estimated date of closure of insolvency resolution process: April 3, 2022 (180 days from commencement) Insolvency professional: Naresh Kumar Munjal Interim Resolution Professional: Naresh Kumar Munjal 125, 2nd Floor, Kailash Hills New Delhi 110065 E-mail: nkmunjalcacs@yahoo.co.in Last date for submission of claims: October 20, 2021 RUDRANI HEALTH: Insolvency Resolution Process Case Summary ---------------------------------------------------------- Debtor: Rudrani Health Care Services Limited 267/3 Anandmayee Marg Udgir, Maharashtra 413517 Insolvency Commencement Date: October 6, 2021 Court: National Company Law Tribunal, Mumbai Bench Estimated date of closure of insolvency resolution process: April 5, 2022 (180 days from commencement) Insolvency professional: Mr. Sachin Shrinivas Bhattad Interim Resolution Professional: Mr. Sachin Shrinivas Bhattad Flat No. 1A, 1st Floor Vijay Towers 139, Railway Lines Next to Iyer Hospital Solapur, Maharashtra 413001 E-mail: sachinbhattadca@gmail.com - and - Stress Credit Resolution Private Limited B 1305-6, Dosti Elite Road No. 29, Sion Mumbai 400022 E-mail: sachin@stresscredit.com admin@stresscredit.com Last date for submission of claims: October 21, 2021 S. S. OVERSEAS: CARE Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------ CARE Ratings said the ratings for the bank facilities of S. S. Overseas (SSO) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 20.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 5.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated October 1, 2020, placed the rating(s) of SSO under the 'issuer noncooperating' category as SSO 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. SSO 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). S. S. Overseas (SSO) belongs to the S.S. Group, founded in 1990. The group primarily comprises of three entities - SSO, S. S. Agro (SSA; rated CARE D/CARE D; Issuer Not Cooperating) and S. S. Timber Traders Both SSO and SSA are engaged in the processing of paddy/rice to rice (basmati and non-basmati rice) and also sell its byproducts like bardana, bran, husk, etc. Both SSA and SSO have their manufacturing units located in Jalalabad, Punjab with an installed capacity of processing 8TPH (tonnes per hour) each. S.S. AGRO: CARE Keeps D Debt Ratings in Not Cooperating Category ---------------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of S.S. Agro (SA) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 20.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 5.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated October 1, 2020, placed the rating(s) of SA under the 'issuer noncooperating' category as SA 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. SA 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). S. S. Agro (SSA) belongs to the S.S. Group, founded in 1990. The group primarily comprises of three entities - SSA, S. S. Overseas (SSO; rated CARE D/CARE D; Issuer Not Cooperating) and S. S. Timber Traders. Both SSA and SSO are engaged in the processing of paddy/rice to rice (basmati and non-basmati rice) and also sell its by-products like bardana, bran, husk, etc. Both SSA and SSO have their manufacturing units located in Jalalabad, Punjab with installed capacity of processing 8TPH (tonnes per hour) each. SAGAR AUTOTECH: CARE Keeps D Debt Rating in Not Cooperating ----------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Sagar Autotech (Jabalpur) Private Limited (SAPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 9.10 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated October 20, 2020, placed the rating(s) of SAPL under the 'issuer non-cooperating' category as SAPL 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. SAPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 5, 2021, September 15, 2021, September 25, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Jabalpur (Madhya Pradesh) based Sagar Autotech (Jabalpur) Private Limited (SAJPL) was incorporated in December 2016 by Jain family. SAJPL is an authorized dealer of Skoda Auto India Private Limited (Skoda) and operates two showrooms at Jabalpur. Further, all the showrooms of the company are equipped with 3-S facilities i.e. Sales, service and spare parts. SARASWATI UDYOG: Insolvency Resolution Process Case Summary ----------------------------------------------------------- Debtor: Saraswati Udyog India Limited Registered office: 163, Thirunagar Colony Erode, Tamil Nadu 638003 Principal office: Thidumal Road Kabilarmalai, Namakkal Tamil Nadu 631204 Insolvency Commencement Date: October 4, 2021 Court: National Company Law Tribunal, Chennai Bench Estimated date of closure of insolvency resolution process: April 2, 2022 (180 days from commencement) Insolvency professional: Mr. Muthusamy S Interim Resolution Professional: Mr. Muthusamy S H4/6 Woodworks Compound Barathidasan Colony 6th Street K K Nagar, Chennai Tamil Nadu 600078 E-mail: subbiahms1952@gmail.com Last date for submission of claims: October 18, 2021 SAVAIR ENERGY: CARE Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of Savair Energy Limited (SEL) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 21.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Long Term/ 47.00 CARE D/CARE D; ISSUER NOT Short Term COOPERATING; Rating continues Bank Facilities to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated September 25, 2020, placed the rating(s) of SEL under the 'issuer non-cooperating' category as SEL 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. SEL 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. Incorporated in the year 2001 by the name of Energy Logistics Private Limited, the Company was subsequently renamed as Savair Energy Limited (SEL). The company was setup to provide services related to Energy Audits. Subsequently in the year 2007, the company started undertaking EPC, turnkey projects, erection, installation and execution for various projects in the energy sector. SEL is promoted by Mr. Saji Antony who is a Mechanical Engineer by qualification and has worked in various Oil & Gas companies for 20 years before starting the business in 2001. The company now focuses in providing EPC services in the Energy and Infrastructure space, SKID & Packages for the Air filtering, fuel filtering, Gas Conditioning and Heat Exchanges systems, project management consultancy in the field of Energy & Infrastructure. The manufacturing facility is located in Ambernath MIDC. SHEETAL AGRO: CARE Keeps D Debt Rating in Not Cooperating --------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Sheetal Agro Food Park Private Limited (SAFPPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 5.00 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 08, 2020, placed the rating(s) of SAFPPL under the 'issuer non-cooperating' category as SAFPPL 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. SAFPPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated July 25, 2021, August 04, 2021, August 14, 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). Kanpur (U.P) based Sheetal Agro Food Park Private Limited was incorporated in January, 2010 and is currently being managed by Mr. Mehboob Alam and Mr. Masroor Alam. The company is engaged in renting of its cold storage facility for potatoes to the local farmers in Kanpur, Uttar Pradesh having storage capacity of 5000 metric tonnes. SMS CONSTRUCTIONS: ICRA Keeps B Debt Ratings in Not Cooperating --------------------------------------------------------------- ICRA has retained the ratings for the bank facilities of SMS Constructions in the 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]B (Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 3.00 [ICRA]B (Stable) ISSUER NOT Fund Based/CC COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Long Term- 3.00 [ICRA]B (Stable) ISSUER NOT Non Fund Based COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Long Term- 4.00 [ICRA]B (Stable); ISSUER NOT Unallocated COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. SMS Constructions (SMS) is a Bangalore-based partnership firm incorporated in February 2013 that is engaged in the business of civil and electrical contracts for KPTCL. The promoter is registered as Class I electrical contractor by the PWD, Karnataka. SC's areas of operations include erection and commissioning of HT & LT substations, transmission lines, internal & external electrification and underground cabling works in South Karnataka districts. The firm has executed one project till date which was completed in January 2016. The promoter, Mr. Umesh Gowda who has been in this business for nearly past two decades through a proprietorship firm, M/s Lekhashree Electricals whose operations were wound up after the formation of SMS Constructions. SOUTHASIAN DIGITAL: Insolvency Resolution Process Case Summary -------------------------------------------------------------- Debtor: M/s. Southasian Digital Media & Entertainment Private Limited #7, 3rd Floor, Ganapathy Colony III Street Teynampet Chennai, TN 600018 IN 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: E. Santhanalakshmi Interim Resolution Professional: E. Santhanalakshmi Plot No. 42B, Sree Krishna Flats S-1, 2nd Floor LIC Nagar 2nd Street Madipakkam, Chennai Tamil Nadu 600091 E-mail: advocate.santhanalakshmi@ gmail.com Last date for submission of claims: October 14, 2021 SRINIVASA RICE: CARE Keeps C Debt Rating in Not Cooperating ----------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Srinivasa Rice Industry (SRI) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.80 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 October 27, 2020, placed the rating(s) of SRI under the 'issuer non-cooperating' category as SRI 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. SRI continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 12, 2021, September 22, 2021, October 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). Srinivasa Rice Industry (SRI) was established in 2013 as a partnership firm. It was promoted by Mr. M Surya PrabhakaraRao, Mr. M. VenkataRatnam, Ms. M. Suji and Mr. D VenkateswaraRao. SRI is engaged in milling and processing of rice. The rice milling unit of the company is located at East Godavari District, Andhra Pradesh, with an installed capacity to process 15400 metric tons per annum Apart from rice processing, the firm is also engaged in selling by-products such as broken rice, husk and bran. SWASTIK COLD: ICRA Keeps B Debt Ratings in Not Cooperating ---------------------------------------------------------- ICRA has retained the ratings for the bank facilities of Swastik Cold Storage in the 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]B(Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based 2.20 [ICRA]B (Stable) ISSUER NOT Cash Credit COOPERATING; Rating continues Pledge to remain under 'Issuer Not Cooperating' category Fund Based 0.25 [ICRA]B (Stable) ISSUER NOT Cash Credit COOPERATING; Rating continues Clean to remain under 'Issuer Not Cooperating' category Fund Based 4.00 [ICRA]B (Stable) ISSUER NOT Term Loan COOPERATING; Rating continues Clean to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Swastik Cold Storage (SCS) was established in May 2015, as a partnership firm owned by nine partners. SCS is involved in providing cold storage facilities to potato farmers and traders on a rental basis. The firm started commercial operations in mid of February 2016. The cold storage facility is located in Deesa, Gujarat, with a storage capacity of 150,000 bags of 50 kilogram (kg) each. SWASTIK TRADELINK: ICRA Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------------- ICRA has retained the ratings for the bank facilities of Swastik Tradelink Private Limited in the 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based– 8.00 [ICRA]D ISSUER NOT COOPERATING; Cash Credit Rating continues to remain under 'Issuer Not Cooperating' Category Non-Fund-based– (2.00) [ICRA]D/[ICRA]D;ISSUER NOT Letter of Credit- COOPERATING; Rating continues sublimit to to remain under 'Issuer Not cash of credit Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Incorporated in 2001, Swastik Tradelink Private Limited (STPL) is engaged in trading of grey cloth, chemicals, paper, steel and cement. STPL is also a distributor of LG mobile phones and Reliance 'Jio' in Gujarat state. The company is promoted by Mr. Sandeep Jain and his family members. TREE HOUSE: CARE Keeps D Debt Rating in Not Cooperating Category ---------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Tree House Education & Accessories Limited (THEAL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 102.80 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated October 20, 2020, placed the rating(s) of THEAL under the 'issuer non-cooperating' category as THEAL 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. THEAL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and email dated September 09, 2021, September 13, 2021 and September 14, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Detailed description of the key rating drivers At the time of last rating on October 20, 2020 the following were the rating strengths and weaknesses (updated for the information available from stock exchange): Key Rating Weaknesses * Delay in debt-servicing obligations: The ratings of Tree house Education & Accessories Ltd continue to reflect on-going delays in servicing of debt obligations by the company. Tree House Education & Accessories Ltd was incorporated on July 10, 2006, as a private limited company by Mr. Rajesh Bhatia and his wife Ms. Geeta Bhatia, is primarily engaged in pre-school education across various locations in India. As of date, there are 524 pre-school centers across the country. TEAL also operates in K12 segment with 24 schools under its management. VEDAMATHA ENTERPRISES: ICRA Keeps D Rating in Not Cooperating ------------------------------------------------------------- ICRA has retained the ratings for the bank facilities of Vedamatha Enterprises Pvt Ltd in the 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 12.50 [ICRA]D; ISSUER NOT COOPERATING; Fund based/CC Rating Continues to remain under 'Issuer Not Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Vedamatha Enterprises Pvt Ltd ("VPPL") was incorporated in 2002, and is currently involved in the decorative laminations business as a distributor of Greenlam Industries Ltd for Bangalore, under a partnership firm named as "Vishaka Enterprises". The company also trades in silk sarees through its retail show room 'Devanad Silks' in Chichpet, Bangalore through a partnership firm named "Devanand Marketing". Since inception till June 2015, the company has been a distributor of HUL's FMCG products for the Bangalore City area. VIKRAM INDIA: ICRA Withdraws D Rating on INR36cr LT Loan -------------------------------------------------------- ICRA has withdrawn the ratings on certain bank facilities of Vikram India Limited (VIL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term– 36.00 [ICRA]D; downgraded from Cash Credit/ [ICRA]BB+ (Stable) and Packing Credit Withdrawn Long term– 14.00 [ICRA]D; downgraded from Fund Based [ICRA]BB+ (Stable) and Withdrawn Short term– 25.00 [ICRA]D; downgraded from Non-Fund Based [ICRA]A4+ and withdrawn Rationale The downgrade in the ratings reflect irregularities in servicing of packing credit facility by the VIL, based on the feedback received from the banker. Also, the ratings are withdrawn at the company's request and based on the no objection certificate provided by its lender as per ICRA's Policy on Withdrawal of Credit Ratings. Key rating drivers and their description Credit strengths: * Experience of the promoters and diversified client base: VIL benefits from the extensive experience of its promoters in the tea processing machinery industry, spanning over four decades. VIL produces a complete range of tea processing machinery. It has a diversified clientele comprising some of the established bulk tea producers in India and abroad. Credit weaknesses: * Delays in debt servicing: There have been irregularities in servicing of packing credit facility as per the feedback received from the lender. Liquidity Position: Poor VIL's liquidity remains poor, as reflected by the delays in servicing the debt obligations by the company. Rating sensitivities Positive factors – Regularisation of debt servicing on a sustained basis may result in a rating upgrade. Negative factors – Not applicable Established in 1974, VIL has more than 4 decades of experience in the tea machinery industry. It started as Vikram Forging and Allied Industries Ltd. Manufacturing stainless steel segments for CTC rollers used in Indian tea manufacturing units. It was later named as Vikram India Limited and has manufacturing units in Ghusuri, Howrah near Kolkata. It is one of the leading manufacturers and exporters of complete line of tea processing machinery- from plucking to packaging to clients across the nation and abroad. VIL also offers customized Project Consultancy Services and Training Packages to its clients. It has successfully completed prestigious turnkey projects from concept to commissioning covering civil, electrical and tea blending equipment and also provided technical know-how for various projects in India and all over the world. In November 2016, the company has commissioned the Module Mounting Structure facility. WALL CERA: ICRA Keeps B+ Debt Ratings in Not Cooperating Category ----------------------------------------------------------------- ICRA has retained the ratings for the bank facilities of Wall Cera Tiles Pvt. Ltd in the 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]B+(Stable)/ [ICRA]A4; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based 3.46 [ICRA]B+ (Stable) ISSUER NOT Term Loan COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Fund Based 4.00 [ICRA]B+ (Stable) ISSUER NOT Cash Credit COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Unallocated Limit 3.54 [ICRA]B+(Stable)/[ICRA]A4; ISSUER NOT COOPERATING; Rating continue to remain Under the 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Incorporated in June 2013, Wall Cera Tiles Private Limited (Wall Cera) is engaged in manufacturing ceramic wall tiles at its facility in Morbi (Gujarat). The company commenced its operations from July 2014 with an installed manufacturing capacity of 38,250 MTPA. The operations of the company are managed by promoters who have past experience in the ceramic industry. One of the directors Mr. Manish Savsani is also a director in Acer Granito Private Limited which is into manufacturing of vitrified tiles. WEST QUAY: CARE Keeps D Debt Ratings in Not Cooperating Category ---------------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of West Quay Multiport Private Limited (WQMPL) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 116.50 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 25.00 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 17, 2020, placed the rating(s) of WQMPL under the 'issuer non-cooperating' category as WQMPL 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. WQMPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated August 3, 2021, August 13, 2021, August 23, 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. West Quay Multiport Private Limited (WQMPL) is a Special Purpose Vehicle (SPV) incorporated to implement the project for development of West Quay Berth-VI (WQ6) for handling bulk cargo up to 4.5 million tonnes per annum at Visakhapatnam Port on Design, Build, Finance, Operate and Transfer (DBFOT) basis. The port would exclusively handle Pet Coke, CP Coke, LAM Coke, steel and Granite for the first five years. WQMPL has been promoted by Alba Asia Private Limited (AAPL, erstwhile ABG-LDA Bulk Handling Pvt. Ltd) (AAPL holds 49%) and ABG Infra-logistics Ltd. (ABG Infra, holds 51%). AAPL is a Joint Venture (JV) in which ABG Infra through its majority-owned subsidiary, ABG Ports Pvt. Ltd. - holds 51% equity stake and LDA holds balance 49% of the equity. ================= I N D O N E S I A ================= INDIKA ENERGY: Moody's Affirms Ba3 CFR & Alters Outlook to Stable ----------------------------------------------------------------- Moody's Investors Service has affirmed the Ba3 corporate family rating of Indika Energy Tbk (P.T.), the Ba3 ratings on the $575 million backed senior secured notes due 2024 issued by Indika Energy Capital III Pte. Ltd., and the $675 million backed senior secured notes due 2025 issued by Indika Energy Capital IV Pte. Ltd. At the same time, Moody's has revised the outlook to stable from negative. "The outlook revision to stable reflects our expectations that Indika's credit metrics will improve and remain within the parameters of its Ba3 ratings over the next 12-18 months, amid an increase in thermal coal prices from the low levels observed in 2020," says Maisam Hasnain, a Moody's Vice President and Senior Analyst. "The affirmation of Indika's Ba3 ratings reflects the company's diversified operations, long operating track record, solid liquidity and continued adherence to prudent financial policies," adds Hasnain, who is also Moody's lead analyst for Indika. RATINGS RATIONALE Amid record high thermal coal prices, Moody's estimates Indika's adjusted leverage -- as measured by adjusted debt/EBITDA - will decline to around 2.3x in 2021 from around 7.3x in 2020, due to stronger earnings particularly at its 91%-owned coal mining subsidiary, Kideco Jaya Agung (P.T.). Kideco's cash profit per ton (net of royalties) has already jumped to around $14 in the six months ended June 2021 (1H 2021) from around $7.5 in 1H 2020. While historical prices suggest the current high Newcastle thermal coal price of around $240 per ton is unlikely to be sustained for a prolonged period, based on Moody's medium-term price assumptions for Newcastle thermal coal of $75-$83 per ton, Indika's adjusted leverage of 3.0x-3.5x over the next two years will remain within the 4.0x ratings downgrade trigger at the Ba3 rating level. Moody's expectations for Indika include its contract mining subsidiary Petrosea Tbk (P.T.) and engineering subsidiary Tripatra Multi Energi (P.T.), which contributed 14% and 7% of consolidated revenue in 1H 2021, executing new contracts with external customers over the next 12-18 months. Indika's scale and business diversity will weaken if these subsidiaries are unable to sign new contracts to replenish their declining order book. Moody's also expects Indika to take a conservative approach toward new investments as the company diversifies its operations and reduces its earnings reliance on thermal coal. As such, Moody's does not expect Indika to prioritize its stated target to generate 50% of its revenue from non-coal businesses by 2025 (14% in the first half of 2021) at the expense of weakening its credit profile. Indika's ability to reach this target will also depend on external factors, including the prevailing coal prices, which are outside the company's control. As part of its diversification strategy, Indika announced in October 2021 that it had acquired the remaining 72% stake it did not own in Nusantara Resources Limited, which owns a greenfield gold mine in South Sulawesi, Indonesia, for $42.7 million. The project requires capital costs of at least $233 million and will likely start operations by end-2024. Therefore, Indika's thermal coal operations at Kideco will likely continue to generate most of the company's earnings over the next few years and underpin Indika's Ba3 ratings. Kideco has a long track record of stable production and profitable operations, with large coal reserves. Indika's Ba3 ratings also incorporate Moody's expectation that Kideco's coal contract of work (CCoW) mining license, which expires in March 2023, will be extended on broadly similar terms. Regulatory uncertainty around the extension of Kideco's mine license has decreased following PT Arutmin Indonesia's 10-year license extension in November 2020. Arutmin, which is owned by Bumi Resources Tbk (P.T.) (Caa1 negative), was one of the first large Indonesian coal miners to have its CCoW expire and will likely serve as a precedent for other CCoW license holders, including Kideco. Indika will maintain very good liquidity, as its large consolidated cash balance and projected operating cash flows will be sufficient to meet its cash needs over the next 12-18 months. Moody's expects Indika to continue to proactively repay debt ahead of scheduled maturities, including its large $1.25 billion US dollar notes, which will mature during 2024-25. ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS Indika's ESG Credit Impact Score is highly negative (CIS-4). The score reflects Indika's very high exposure to environmental risks and high exposure to social risks stemming from its coal mining operations. The company's strategy to diversify its earnings away from coal could reduce some of these risks over time. The company's exposure to environmental risk is very highly negative (E-5 issuer profile score), driven by very high carbon transition risks for thermal coal, Indika's key earnings driver. This risk could decline over the next 2-3 years if Indika grows its non-coal related businesses and reduces its earnings reliance on thermal coal. Indika's exposure to social risk is highly negative (S-4 issuer profile score), driven primarily by the high exposure of its coal mining activities to human capital, health & safety, responsible production, and demographic and societal trend risks. To address these risks, Indika initiates sustainability initiatives under its health, safety and environment programs, and carries out corporate social responsibility activities via the Indika Foundation. Indika's exposure to governance risk is moderately negative (G-3 issuer profile score), driven by challenges associated with its growth and diversification strategy, which will require incremental debt and entail execution risk. These risks are somewhat mitigated by Indika's track record of managing its operations through multiple commodity price cycles and its adherence to prudent financial policies, including the proactive refinancing of its debt maturities, modest shareholder returns, and maintaining its good liquidity with large cash balances, and its demonstrated access to capital markets. OUTLOOK The outlook is stable, reflecting Moody's expectation that Indika will maintain (1) profitable and cash-generative operations; (2) a conservative approach to investments and shareholder returns; and (3) strong liquidity and proactively refinance debt maturities. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade of the rating is unlikely over the next 12-18 months, given Indika's current scale and risks associated with its diversification strategy. Nonetheless, upward rating pressure could arise over time if Indika (1) increases its scale and diversifies its business while maintaining a strong credit profile; (2) extends the Kideco coal mining license beyond its 2025 bond maturity, with no material changes to the existing terms; and (3) maintains very good liquidity, while proactively refinancing or repaying its large debt maturities due in 2024-25 well ahead of the scheduled maturity. Specific financial indicators Moody's would consider for an upgrade include adjusted debt/EBITDA below 2.5x and adjusted EBIT/interest above 3.0x, both for an extended period. Moody's could downgrade the ratings if (1) Indika's credit metrics weaken; (2) Kideco fails to extend its CCoW mining license on substantially similar terms; or (3) Indika engages in aggressive shareholder distributions or investments, demonstrating a departure from its track record of preserving liquidity. Specific financial indicators Moody's would consider for a downgrade include adjusted debt/EBITDA above 4.0x or adjusted EBIT/interest below 2.0x, both for an extended period. The principal methodology used in these ratings was Mining published in September 2018. Indika Energy Tbk (P.T.) is an Indonesian integrated energy group listed on Indonesia's Stock Exchange, with a market capitalization of around IDR12 trillion ($850 million) as of October 19, 2021. Its principal investment is a 91% stake in Kideco Jaya Agung (P.T.), one of Indonesia's largest domestic coal producers. =============== M A L A Y S I A =============== SABAH FOREST: Receivers Seek Buyer for Assets --------------------------------------------- Grant Thornton Consulting, the Receiver and Manager of Sabah Forest Industries Sdn Bhd (SFI), are inviting bids to acquire one of Southeast Asia's largest pulp and paper mill with an integrated timber complex located in Sabah, Malaysia. Interested parties are invited to submit offers for acquisition of all the assets as a whole on an "as is where is basis". Assets for sale include: * Forest Estate; * Pulp & Paper Plant; * Power Plant; * Integrated Timber Complex; and * Jetty. Interest parties who wish to participate in this tender are required to purchase the Information Memorandum at USD1,000 (excluding good and services tax) per copy. The Information Memorandum contains brief particulars of the assets, conditions of sale and access to data room containing details such as the independent professional valuation report and other information. Payment shall be made by way of cash/banker's draft in favor of Grant Thornton Consulting Sdn Bhd. For further details, please contact Ms. Syazwani and Mr. Yong How Ching at contact details below. All offers are to be submitted in a sealed envelope marked with reference number (Ref: GTCTDR 10/21) on the top left-hand corner of the envelope and are to reach the Receiver and Manager by 12:00 p.m. on Nov. 15, 2021. The Receiver and Manager can be reached at: Grant Thornton Consulting Sdn Bhd Level 8-3, Sheraton Imperial Court Jalan Sultan Ismail 50250 Kuala Lumpur Malaysia Tel. No: +603 2692 4022 About Sabah Forest Sabah Forest Industries, Sdn, Bhd (SFI) is a forest reserve and pulp and papermill. The Company owns and operates forest plantations, natural forest management areas, sawmills, and a plywood factory. SFI has a variety of products including uncoated wood-free paper, sawn timber, plywood, and tropical hard round logs. SFI has been under receivership since at 2017, with Maybank Trustees Bhd appointing Grant Thornton Consulting (M) Sdn Bhd as the receiver and manager. ================= S I N G A P O R E ================= CENTRA JAYA: Court Enters Wind-Up Order --------------------------------------- The High Court of Singapore entered an order on Oct. 15, 2021, to wind up the operations of Centra Jaya (S) Pte. Ltd. Maybank Singapore Limited filed the petition against the company. The company's liquidator is: Mr. Gary Loh Weng Fatt c/o BDO Advisory Pte Ltd 600 North Bridge Road #23-01 Parkview Square Singapore 188778 DRILLSCAN ASIA: First Creditors' Meeting Set for Nov. 11 -------------------------------------------------------- A first meeting of the creditors in the proceedings of Drillscan Asia & Middle East Pte Ltd will be held on Nov. 11, 2021, at 8:05 p.m. via video-conference and/or tele-conference. Mr. Saw Meng Tee of EA Consulting was appointed as provisional liquidator of the company on Oct. 15, 2021. ===================== S O U T H K O R E A ===================== SSANGYONG MOTOR: Edison Motors likely to Emerge as Preferred Bidder ------------------------------------------------------------------- The Korea Herald reports that Edison Motors, a little-known electric bus manufacturer, seems likely to emerge as the preferred bidder for SsangYong Motor, South Korea's longest-running car brand, which has experienced debt troubles in recent years. According to the report, the Seoul Bankruptcy Court said a consortium led by Edison Motors is the only remaining bidder, effectively making it the preferred buyer. Its competitor, another consortium led by EV firm Electrical Life Business and Technology, was excluded from the list as it failed to prove that it had the necessary funds to acquire SsangYong Motor, the court said, the Korea Herald relates. EL B&T had sought to acquire the automaker for KRW500 billion ($425.61 million), when Edison Motors bid KRW280 billion. Edison Motors' consortium includes homegrown activist fund Korea Corporate Governance Improvement, Keystone Private Equity and electric vehicle component maker Semisysco, the report discloses. Kang Young-kwon, chief executive officer of Edison Motors, had said previously in an interview with The Korea Herald that his consortium could channel about KRW800 billion to KRW1 trillion for the acquisition and post-acquisition revival program. Mr. Kang, a TV producer-turned-entrepreneur, said he wanted to transform SsangYong into a major EV brand to rival global automakers such as Tesla, Volkswagen and General Motors. His stated goal was to have the company turn a profit within three to five years by tripling its annual production volume to 300,000 vehicles, including 150,000 EVs and 50,000 hybrid EVs. "Edison Motor's battery technology would benefit SsangYong to produce more competent electric vehicles," the report quotes Mr. Kang as saying. While SsangYong's electric SUV has a driving range of some 300 kilometers on a single charge, Edison Motors' third-generation battery pack with its smart battery management system could pull that figure up to 450 or even 800 kilometers, Mr. Kang said. Mr. Kang dismissed skeptics, pointing out that even conglomerates with far greater funding power had failed to revive SsangYong over the years, the report relays. "I would not be considering acquiring SsangYong if I did not believe in its potential. There is no reason to put my company at risk," Mr. Kang said, adding that Edison Motors was already competitive in its own field, with interested investors. SsangYong said it will follow through with the necessary procedures for court approval and will sign a memorandum of understanding with Edison Motors around the end of this month, the Korea Herald adds. About SsangYong Motor Headquartered in Kyeonggi-Do, South Korea, Ssangyong Motor Co. Ltd. engages in the manufacture and sale of automobiles. The Company mainly manufactures and sells recreational vehicles (RVs), sports utility vehicles (SUVs), multi-purpose vehicles (CDVs) and passenger cars under the brand name of rexton sports, korando, korando sports, korando turismo, tivoli, tivoli air and others. The Company also provides automobile parts. The Company distributes its products within domestic market and to overseas markets. Mahindra acquired a 70% stake in SsangYong for KRW523 billion in 2011 and now holds a 74.65% stake in the carmaker. SsangYong Motor Co. on Dec. 21, 2020, filed for court receivership as it struggles with snowballing debts amid the COVID-19 pandemic, according to Yonhap News Agency. The decision comes after SsangYong Motor failed to pay KRW60 billion (US$54.8 million) worth of debts to its three creditor banks. On April 15, 2021, SsangYong Motor Co. was placed under court receivership as its Indian parent Mahindra & Mahindra Ltd. failed to attract an investor amid the prolonged COVID-19 pandemic and its financial status is further worsening. Under court receivership, SsangYong's survival depends on whether there will be a new investor to acquire a streamlined SsangYong after debt settlement and other restructuring efforts, Yonhap said. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman, Editors. Copyright 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 ***