/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/211125.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, November 25, 2021, Vol. 24, No. 230 Headlines A U S T R A L I A MALIVER PTY: Court Orders Financial Services Company Wound Up MYSTIQUE PRINT: Placed in Voluntary Liquidation PL TOWN: First Creditors' Meeting Set for Dec. 2 QUENCH NATURAL: First Creditors' Meeting Set for Dec. 2 WEISMAN GROUP: First Creditors' Meeting Set for Dec. 2 C H I N A SUNRISE REAL ESTATE: Incurs $919,000 Net Loss in Third Quarter I N D I A AGARWALLA TIMBERS: Ind-Ra Affirms 'BB' Long-Term Issuer Rating BAJORIA AGRO: CARE Keeps D Debt Rating in Not Cooperating Category BELGAUM WIND: Ind-Ra Keeps B+ Bank Loan Rating in Non-Cooperating BHARTI AIRTEL: Moody's Alters Outlook on Ba1 CFR to Positive BHAVANAM TEXTILES: CARE Keeps B- Debt Rating in Not Cooperating CLAVECON PRIVATE: Ind-Ra Moves B+ Issuer Rating to Non-Cooperating DAS ASSOCIATES: Ind-Ra Moves 'B+' Issuer Rating to Non-Cooperating DHROOV RESORTS: CARE Keeps D Debt Rating in Not Cooperating EMSON GEARS: CRISIL Withdraws B+ Rating on INR45.24cr Loan to B+ GAJANAN AGRO: CARE Keeps B Debt Rating in Not Cooperating GARG ISPAT: CARE Keeps D Debt Ratings in Not Cooperating GENGA MILLS: CARE Moves D Debt Rating to Not Cooperating Category GOLDSTAR POLYMERS: CARE Keeps D Debt Ratings in Not Cooperating GREENWAY CLOTHING: CARE Keeps B- Debt Rating in Not Cooperating GSM MEGA: CRISIL Downgrades Rating on INR60cr Loans to D JAGANNATH EDUCATIONAL: CARE Keeps D Debt Rating in Not Cooperating KAMAL IDEAL: CARE Keeps D Debt Rating in Not Cooperating Category KASHIPUR SITARGANJ: Ind-Ra Keeps 'D' Loan Rating in Non-Cooperating LGW INDUSTRIES: CARE Assigns B Rating to INR27.00cr LT Loan LYOPHILIZATION SYSTEMS: CARE Cuts Rating on INR2.50cr Loan to B+ M. S. ENGINEERING: CARE Keeps B- Debt Rating in Not Cooperating MEENAKSHI ENERGY: Ind-Ra Affirms 'D' Bank Loan Rating OSHO FORGE: CRISIL Withdraws B+ Rating on INR15cr Cash Loan PERICHI GOUNDER: Ind-Ra Keeps 'D' Loan Rating in Non-Cooperating RAJCHANDRA AGENCIES: CRISIL Cuts Rating on INR20cr Loan to B+ RAKE POWER: CARE Keeps D Debt Rating in Not Cooperating Category RIYARA TRADING: CARE Lowers Rating on INR12.00cr LT Loan to B+ ROSA POWER: Ind-Ra Hikes Bank Loan Rating to 'BB' SEASON RUBBERS: CRISIL Hikes Rating on INR7cr Cash Loan to B+ SHAH SPONGE: Ind-Ra Keeps 'BB' LT Issuer Rating in Non-Cooperating SHRIKRISHNA AVDHOOT: CARE Keeps D Debt Rating in Not Cooperating SIDHARTHA BUILDHOME: CARE Keeps D Debt Rating in Not Cooperating SIVAKAME TRADING: CRISIL Reaffirms B Rating on INR7cr Loans SPR BUILDTECH: CARE Keeps B- Debt Rating in Not Cooperating SWASTIK COAL: Ind-Ra Affirms 'D' Long-Term Issuer Rating TAJSHREE CARS: CARE Keeps D Debt Rating in Not Cooperating TAJSHREE MOTORS: CARE Keeps C Debt Rating in Not Cooperating TECHNO DRUGS: CARE Lowers Rating on INR6.85cr LT Loan to B- TRIJAL ENTERPRISE: Ind-Ra Moves 'BB-' Rating to Non-Cooperating UDAIPUR BEVERAGES: Ind-Ra Withdraws 'BB' Long-Term Issuer Rating UNIVERSAL TRADERS: CARE Keeps B- Debt Rating in Not Cooperating UNNATI FORTUNE: CARE Keeps D Debt Rating in Not Cooperating VRINDAA CRAFTS: CARE Keeps B- Debt Rating in Not Cooperating I N D O N E S I A LIPPO KARAWACI: Moody's Alters Outlook on B3 CFR to Positive J A P A N TOSHIBA CORP: Shareholder Objects to Break-up Plan M A L A Y S I A 1MALAYSIA: COA Junks Najib's Bid to Move Decision on SRC Appeal N E W Z E A L A N D COLLECTIVE CONSTRUCTION: Leen Promises to Repay Creditors NZD260K J AND K PERFORMANCE: Court to Hear Wind-Up Petition on Dec. 7 ORMISTON RISE: Court to Hear Wind-Up Petition on Dec. 3 ZHERO LIMITED: Creditors' Proofs of Debt Due on Dec. 22 S I N G A P O R E AGV GROUP: Flags Going Concern Uncertainty EAGLE HOSPITALITY: Judge Weighs Ch. 11 Relief Money Sanction HYFLUX LTD: Unsecured Creditors Likely to Receive Small Dividend LUX DESIGN: Court to Hear Wind-Up Petition on Dec. 10 SINYAP INTEGRATED: Court to Hear Wind-Up Petition on Dec. 10 SMALLWORLD DEVELOPMENTS: Creditors' Proofs of Debt Due on Dec. 23 - - - - - ================= A U S T R A L I A ================= MALIVER PTY: Court Orders Financial Services Company Wound Up ------------------------------------------------------------- ABC News reports that dozens of investors who were swindled out of millions of dollars by missing Sydney businesswoman Melissa Caddick are a step closer to getting some of their money back. The 49-year-old, who posed as a financial adviser, went missing from her eastern suburbs home on November 12 last year, leaving investors almost AUD24 million out of pocket, the report says. Her Dover Heights house was raided a day before her disappearance as part of an Australian Securities and Investments Commission (ASIC) investigation into her finances and her boutique financial services company Maliver, according to ABC News. A court in July heard Ms. Caddick misappropriated investors' money to buy real estate, holidays, and luxury goods over a period of eight years and sent them fictitious portfolio evaluations, the report recalls. ABC News says two campers found a foot, which DNA testing showed belonged to Ms Caddick, on Bournda Beach near Tathra months after she went missing. According to the report, ASIC has been pursuing court action to try to recover as much money as possible for her 72 clients, but the court has previously heard arguments her assets shouldn't be liquidated until a Coroner has declared her dead. ABC News relates that Justice Brigitte Markovic found that Ms. Caddick and her company both broke the law by operating without the required Australian financial services licence. Justice Markovic ordered the company be wound up and permanent receivers appointed to Ms Caddick's property, the report notes. But she said owing to the unusual circumstances of the case, the receivers must approach the court for direction before taking possession of Ms. Caddick's property or distributing any funds, the report relays. Justice Markovic's judgment was published on Nov. 23 to allow the parties 48 hours to consider redactions. Liquidator and Receiver Bruce Gleeson said it was positive news for those who were seeking to recover their investments, the report relays. "Until now we have only been able to investigate and also safeguard and secure assets," the report quotes Mr. Gleeson as saying. "It's the next step and indeed a critical and beneficial step for investors who have lost money with Melissa Caddick. "I think the investors have continued to be in regular contact with us and obviously they are looking for some sense of progress in the matter and hopefully today is a step in the right direction." ABC News says Ms. Caddick left her home for a run in November last year but without taking her mobile phone, wallet or keys and hasn't been seen since. The corporate watchdog dropped all charges against Ms Caddick more than five weeks after her foot washed up more than 400 metres from her home to enable the civil case to proceed, the report notes. The mother was facing 38 charges, including falsely claiming she had a financial services licence and other fraud-related offences. In December 2020, Bruce Gleeson and Daniel Soire Jones Partners were appointed by the Federal Court of Australia as provisional liquidators of her wealth management company, Maliver Pty Ltd. MYSTIQUE PRINT: Placed in Voluntary Liquidation ----------------------------------------------- Wayne Robinson at Print21 reports that carbon neutral operation Mystique Print is in voluntary liquidation, with the company, which operated out of Rowville in Melbourne and Surry Hills in Sydney, set to be wound up. Unsecured creditors are owed AUD681,000, with AUD173,000 due to preferential creditors, including AUD118,000 owed in staff entitlements, and there is AUD91,000 in secured debt to NAB, Print21 discloses. Print 21 understands the customer list has been bought by another Melbourne print business, with Mystique's 13 staff moving over to the buyer. Of the AUD681,000 owed to unsecured creditors the ATO is owed almost half at AUD305,000, the two big paper merchants are owned AUD93,000 between them, various Greene family members are owed AUD143,000, with AUD110,000 owed to 33 trade suppliers, along with AUD30,000 to Amex, according to Print21. Print21 relates that the business, which ran two B2 offset presses, suffered along with the whole Victorian commercial sector during Covid, and then had issues with its landlord of 15 years, who wanted to significantly increase the rent. Mystique was founded by Darren Greene in 1990, and he is, or was, still at the helm of the company, which ran offset, digital and wide format presses when it went down, the report says. It also offered creative services and marketing for its clients. According to Print21, the company made a name for itself as an eco-pioneer in the industry, and claimed to be "Australia's only government certified 100 per cent carbon neutral full service provider", and said it was the first carbon neutral printer in the country. Mystique was the subject of a question in federal Parliament to Julia Gillard when she was prime minister, from local member Alan Tudge, in regard to the carbon tax, with Tudge questioning why Mystique should have to pay it when it was so environmentally advanced, Print21 notes. The PM brushed aside the question, but the carbon tax never eventuated. PL TOWN: First Creditors' Meeting Set for Dec. 2 ------------------------------------------------ A first meeting of the creditors in the proceedings of PL Town Hall Pty Ltd will be held on Dec. 2, 2021, at 10:00 a.m. via virtual facilities only. Graeme Robert Beattie of Worrells Solvency & Forensic Accountants was appointed as administrator of PL Town on Nov. 22, 2021. QUENCH NATURAL: First Creditors' Meeting Set for Dec. 2 ------------------------------------------------------- A first meeting of the creditors in the proceedings of Quench Natural Spring Water Pty Ltd ATF Quench Natural Spring Water Trust will be held on Dec. 2,, 2021, at 10:30 a.m. via teleconference only. Kathleen Vouris, Richard Albarran and Richard Lawrence of Hall Chadwick were appointed as administrators of Quench Natural on Nov. 22, 2021. WEISMAN GROUP: First Creditors' Meeting Set for Dec. 2 ------------------------------------------------------ A first meeting of the creditors in the proceedings of Weisman Group Australia Pty Ltd will be held on Dec. 2, 2021, at 10:00 a.m. via teleconference only. Kathleen Vouris, Richard Albarran and Richard Lawrence of Hall Chadwick were appointed as administrators of Weisman Group on Nov. 22, 2021. ========= C H I N A ========= SUNRISE REAL ESTATE: Incurs $919,000 Net Loss in Third Quarter -------------------------------------------------------------- Sunrise Real Estate Group, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss $918,568 on $5.60 million of net revenues for the three months ended Sept. 30, 2021, compared to net income of $21.96 million on $108,523 of net revenues for the three months ended Sept. 30, 2020. For the nine months ended Sept. 30, 2021, the Company reported net income of $29.94 million on $14.30 million of net revenues compared to net income of $18.87 million on $802,194 of net revenues for the nine months ended Sept. 30, 2020. As of Sept. 30, 2021, the Company had $401.45 million in total assets, $239.77 million in total liabilities, and $161.68 million in total shareholders' equity. A full-text copy of the Form 10-Q is available for free at: https://bit.ly/3DRYmby About Sunrise Real The principal activities of Sunrise Real Estate Group, Inc. and its subsidiaries are real estate development and property brokerage services, including real estate marketing services, property leasing services; and property management services in the People's Republic of China. The Company reported a net loss of $4.24 million for the year ended Dec. 31, 2020, compared to a net loss of $4.52 million for the year ended Dec. 31, 2019. As of June 30, 2021, the Company had $391.59 million in total assets, $228.31 million in total liabilities, and $163.28 million in total shareholders' equity. ========= I N D I A ========= AGARWALLA TIMBERS: Ind-Ra Affirms 'BB' Long-Term Issuer Rating -------------------------------------------------------------- India Rating and Research (Ind-Ra) has affirmed Agarwalla Timbers Pvt. Ltd.'s (ATPL) Long-Term Issuer Rating at 'IND BB' with a Stable Outlook. The instrument-wise rating actions are: -- INR60 mil. Fund-based limits affirmed with IND BB/Stable/IND A4+ rating; and -- INR710 mil. Non-fund-based limits affirmed with IND A4+ rating. KEY RATING DRIVERS The affirmation reflects ATPL's continued medium scale of operations, as reflected by a decline in the revenue to INR1,541.5 million in FY21 (FY20: INR1,735.3 million) on account of the operational disruptions caused by COVID-19 lockdown. The management, however, expects the revenue to improve in the medium term due the economic rebound being witnessed in the country. The ratings factor in the company's modest EBITDA margin of 3.5% in FY21 (FY20: 2.9%). The margin expanded in FY21as the company was able to procure the raw material at favorable prices amid the pandemic. Its return on capital employed stood at 4.1% in FY21 (FY20: 4.2%). The ratings are also constrained by ATPL's weak credit metrics. The company's adjusted net leverage (total adjusted net debt/operating EBITDA) deteriorated to 14.2x in FY21 (FY20: 13.2x) on account of an increase in the total debt in the form of increased exposure towards letter of credit (LC)-backed creditors. Its interest coverage (operating EBITDA/gross interest expense), however, improved to 3.4x in FY21 (FY20: 2.6x) due to a marginal improvement in the EBITDA to INR53.9 million (INR50.3 million) coupled with a decline in the interest expenses. Liquidity Indicator - Stretched: ATPL's average peak utilization of the fund-based facilities remained nil during the 12 months ended September 2021. However, the major requirement for the company has been the non-fund-based limits where the average peak utilization during the 12 months ended September 2021 stood at 96%. The company further availed of an adhoc LC facility of INR75 million over February-August 2021 with an average maximum utilization of 78%. The company's working capital cycle deteriorated to 191 days in FY21 (FY20: 173 days) owing to an increase in the receivable period (FY21: 135 days; FY20: 116 days) and inventory period (71 days; 61 days) while the creditor days witnessed a marginal increase (15 days; three days). The cash flow from operations turned positive to INR11.5 million in FY21 (FY20: negative INR152 million) owing to the improved EBITDA. ATPL's debt repayments for FY22 are INR1.24 million against cash and cash equivalents of INR28.3 million at FYE21 (FYE20: INR20 million). The ratings, however, are supported by the company's diverse customer base. The final product of the company is customized with the products finding application in real estate, construction, furniture, packaging and industrial purposes catering through diverse wholesalers, dealers and builders across India. The company has an extensive track record of more than a decade with various customers. Further in FY21, the top five customers accounted for around 5.1% while the top 10 customers accounted for around 12.7% of the total sales, indicating a low customer concentration risk. The ratings further factor in the locational advantage of the factory being located at Gandhidham (Gujarat), the timber hub of India. Most of the timber merchants based out of North India operate in Gandhidham for timber processing and distribution, given its proximity to the Kandla port. ATPL benefits from its long relationships with various timber suppliers from South East Asia (mainly Malaysia) and its own saw mills at Gandhidham in Gujarat for processing and storing timber inventory. The ratings also continue to be supported by the extensive experience of the management (Subash Goel and Bhim Sain Goel) of more than two decades in the industry. RATING SENSITIVITIES Negative: A further decline in the scale of operations and further elongation of net working capital cycle leading to deterioration in overall credit metrics, on sustained basis, coupled with decline in the liquidity profile will be negative for the ratings. Positive: A sustained improvement in the overall scale of operations and liquidity profile, along with improvement in credit metrics and reduction in debtor days on a sustained basis, would be positive for the ratings. COMPANY PROFILE Incorporated in 1999 by Subash Goel and Bhim Sain Goel, Agarwalla Timbers Private Limited (ATPL) is engaged in importing, processing and trading of timber. The company has 27 saw mills located at Gandhidham, Gujarat with its registered office at Delhi. The company sells to wholesalers, dealers and builders across North, South and West India. The company imports different type of woods from Malaysia, Solomon Islands, New Zealand, Australia, Uruguay and USA. BAJORIA AGRO: CARE Keeps D Debt Rating in Not Cooperating Category ------------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Bajoria Agro Processing Private Limited (BAPPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 32.00 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 30, 2020, placed the rating(s) of BAPPL under the 'issuer non-cooperating' category as BAPPL 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. BAPPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 15, 2021, September 25, 2021, October 5, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Rajasthan based Bajoria Agro Processing Private Limited (BAPPL) was incorporated in 2013 and is currently being managed by Mr. Mahender Gopal Bajoria and Mr. Ankur Bajoria. BAPPL manufactures wheat-based products including maida, sooji, rava and atta at its manufacturing facility at Abohar, Punjab having a production capacity of about 240 tonnes per day. The company procures it's raw material i.e wheat from manufactures located in Delhi, Punjab and Harayana.The company sells it's products to ITC, Bonn, Mrs. Bectors (Cremica) & SS Foods ITC, Bonn, Mrs. Bectors (Cremica) & SS Foods. BELGAUM WIND: Ind-Ra Keeps B+ Bank Loan Rating in Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Belgaum Wind Farms Private Limited's senior project loan rating in the non-cooperating category. The issuer did not participate in the surveillance exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating action is: -- INR700 mil. (INR399.4 outstanding as of January 31, 2020) Senior project bank loan maintained in non-cooperating category with IND B+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING; The rating was last reviewed on April 7, 2020. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the rating. COMPANY PROFILE Belgaum Wind Farms is a 24.8MW wind power project that is located in the Gadag plains near Belgaum, Karnataka. The project has been set up and promoted by the Indian Energy Group. BHARTI AIRTEL: Moody's Alters Outlook on Ba1 CFR to Positive ------------------------------------------------------------ Moody's Investors Service has revised Bharti Airtel Ltd.'s (Bharti) and its subsidiary Bharti Airtel Int'l (Netherlands) B.V.'s ratings outlook to positive from stable. At the same time, Moody's has affirmed Bharti's Ba1 corporate family rating and senior unsecured rating, as well as the Ba1 rating on the backed senior unsecured notes issued by Bharti Airtel Int'l (Netherlands) B.V. "The outlook change to positive reflects Bharti's improving operating performance and credit metrics which, if sustained, could support an upgrade to investment grade within the next 12-18 months," says Annalisa Di Chiara, a Moody's Senior Vice President. "The continued expansion of profitability, particularly at its core Indian mobile business, together with a steady reduction in its balance sheet debt, is needed to mitigate the potential effect on Bharti's credit metrics of significant investments in 5G and the compounding growth of deferred liabilities during the moratorium period," added Di Chiara, who is also Moody's lead analyst for Bharti. RATINGS RATIONALE Bharti's Ba1 CFR considers the company's position as one of the largest telecom service operators globally in terms of subscribers (471 million), its solid market position in India's (Baa3 stable) high-growth mobile market and its large spectrum holdings. Bharti's proven ability to access capital markets and the benefits of its strong and supportive shareholder base are also reflected in the ratings. The company reported a 27% increase in its consolidated reported EBITDA to INR272 billion for the six months ended September 30, 2021 compared with the same period in 2020. Moody's expects Bharti's consolidated adjusted EBITDA to increase toward INR570 billion -INR585 billion by the end of fiscal 2022, which ends March 31, 2022 -- around a 25% increase over fiscal 2021's. This expectation is based on its continued expansion of its 4G subscriber base and the increase in average revenue per user (ARPU) at the company's core Indian mobile services segment -- which contributes around 53% of consolidated EBITDA. The company's recently announced tariff increase is a meaningful step to drive ARPUs higher and supports Moody's expectation of rising profitability over the next 12-18 months. At the same time, Moody's forecasts stable EBITDA growth in the 10%-15% range for Bharti's African operations, which are held through its 56%-owned subsidiary, Airtel Africa Limited, and contribute around 30% of consolidated EBITDA. In August 2021, Bharti announced a INR210 billion rights issue that included an upfront payment and two tranches to be raised over the next three years. The company raised the upfront amount of INR52.5 billion in October 2021, the proceeds of which Moody's expects will be used to reduce debt. Bharti has said it will close on additional tranches to support debt reduction and its 5G investments as needed. Moody's believes the Government of India's recently announced reform package for the financially stressed telecommunications industry will not only help strengthen Bharti's cash flow, but will help ensure the longer-term health of the sector. Bharti has accepted the four-year moratorium for payment of its statutory dues payable to the government comprising around INR500 billion of spectrum liabilities and INR280 billion of annual gross revenue (AGR) dues (both amounts as of March 31, 2021). Moody's estimates that the deferment option saves the company around INR400 billion - INR 450 billion of cash payments to the government over the same period. However, the moratorium is only up to September 30, 2025. The deferred amounts will be spread equally over the remaining instalments to be paid, without any increase in the existing time period specified for making the instalment payments, such that the net present value of the payable amount is protected. As a result, the compounding effect over the moratorium period means that the aggregated deferred liability could grow considerably from the current INR785 billion as of March 2021, while the annual cash payments to the government would also increase significantly beginning in 2025. As a result, Moody's expects Bharti to redeploy cash flow savings over the moratorium period, together with organic cash flow generation, to permanently reduce balance sheet debt at its Indian operations. In addition, the extended moratorium helps boost Bharti's capacity to invest in its 5G networks in efforts to solidify its competitive position against potential competition when 5G services are commercially launched in India over the next 18-24 months. Moody's also expects investments in 5G spectrum, should an auction occur in the first half of 2022, will not worsen the company's leverage profile. This is based on Moody's assumption of a spend of around INR370 billion at the auction, to be partially funded by proceeds from additional calls for the rights issue. That said, uncertainty remains regarding the timing of the auction and Bharti's ultimate participation -- which could be higher than Moody's assumed amount. Moody's expects Bharti's leverage, as measured by adjusted debt/EBITDA, to decline toward 3.2x by fiscal 2022 from 3.7x for the 12 months ended September 30, 2021. Moody's includes Bharti's perpetual securities as debt in its calculations. A permanent reduction in its balance sheet debt, including its deferred liabilities, would also preemptively build additional financial capacity at the core Indian mobile operations. The positive outlook reflects Bharti's improving operating profile credit metrics, including Moody's expectation of growing free cash flows and liquidity over the next 12-18 months, particularly at the core Indian operations. Moody's expects consolidated adjusted debt/EBITDA to steadily decline, even with investments in 5G spectrum, and that cash flow savings from the moratorium are redeployed to reduce debt permanently. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's may upgrade the rating if Bharti delivers on further improvement in profitability leading to solid free cash flow generation and permanent debt reduction - particularly at the Indian operations -- such that consolidated leverage trends below 2.5x on a sustained basis. To that end, Moody's will also look for further clarity around 5G investments, particularly related to spectrum spend and funding thereof, in the upcoming auction and its competitive positioning and readiness in advance of 5G rollout. A downgrade is unlikely over the next 12-18 months, given the recovery in Bharti's operating performance and the positive outlook. However, Moody's could return the outlook to stable if there is a reversal in the company's profitability, a significant deterioration in its liquidity position or any adverse changes in the competitive or regulatory environments that would derail the continued improvement in profitability, cash flows and leverage. The principal methodology used in these ratings was Telecommunications Service Providers published in January 2017. Founded in 1994, Bharti Airtel Ltd. is the third-largest telecommunications service provider globally, based on total number of subscribers. As of September 30, 2021, it had around 471 million customers across operations in 18 countries in South Asia and Africa. BHAVANAM TEXTILES: CARE Keeps B- Debt Rating in Not Cooperating --------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Bhavanam Textiles India Private Limited (BTIPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 12.23 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 10, 2020, placed the rating(s) of BTIPL under the 'issuer non-cooperating' category as BTIPL 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. BTIPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 26, 2021, October 6, 2021, October 16, 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). Bhavanam Textiles (India) Private Ltd. (BTIPL) was incorporated on February 27, 2013 by Mr Bhavanam Rama Koti Reddy and Mrs Bhavanam Adi Lakshmi after the promoters took over the operations of another company i.e., Pujita Spinning Mills Limited. The commercial operations of the company commenced from April 1, 2013 and FY14 was the first full year of operation. The company is engaged in the manufacturing of cotton yarn through its manufacturing unit at Thimmapuram village, Guntur district, Andhra Pradesh, with an installed capacity of 13,644 spindles. CLAVECON PRIVATE: Ind-Ra Moves B+ Issuer Rating to Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has migrated Clavecon (India) Private Limited's Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are as follows: -- INR37.85 mil. Term loan due on August 2022 migrated to non- cooperating category with IND B+ (ISSUER NOT COOPERATING) rating; -- INR35 mil. Fund-based working capital limits migrated to non- cooperating category with IND B+ (ISSUER NOT COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating; and -- INR5 mil. Non-fund-based working capital limits migrated to non-cooperating category with IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on November 5, 2020. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 2013, Clavecon (India) manufactures autoclaved aerated concrete and concrete blocks. It has an installed capacity of 15,000 cubic meters per month. DAS ASSOCIATES: Ind-Ra Moves 'B+' Issuer Rating to Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has migrated A.K. Das Associates Limited's (AKDAL) Long-Term Issuer rating to non-cooperating category. The Outlook was Stable. The issuer did not participate in the rating exercise despite continuous requests and follow ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are as follows: -- INR174 mil. Fund-based working capital limits migrated to non- cooperating category with IND B+ (ISSUER NOT COOPERATING) rating; and -- INR470 mil. Non-fund-based working capital limits migrated to non-cooperating category with IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on October 8, 2020. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 1996, Odisha-based AKDAL constructs transmission lines and substations, and related electrical and civil works. The company is promoted by Amiya Kanta Das, Sovarani Das and Pranati Das. DHROOV RESORTS: CARE Keeps D Debt Rating in Not Cooperating ----------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Dhroov Resorts (DR) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 11.00 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 November 9, 2020, placed the rating(s) of DR under the 'issuer non-cooperating' category as DR 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. DR continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 25, 2021, October 5, 2021, October 15, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). M/s Dhroov Resorts, a sole proprietary concern of Mr. Balbir Singh Verma, is constructing a 4- star hotel project by the name of "Dhroov Resorts" in Shimla, H.P. Mr. Verma is a MLA (Member of Legislative Assembly) from the Chopalarea (in Shimla district) and is also a certified builder and civil contractor in the region. The total project cost of INR23.57 crore is expected to be funded through a debt of INR15 crore and promoter's capital of INR7.21 crore and other borrowings of INR1.36 cr. As on December 31, 2015, the firm has incurred a total cost of INR 20.87 crore. The hotel is expected to start commercial operations from April 2016 onwards. Status of non-cooperation with previous CRA: Brickwork Ratings has conducted the review and has classified Dhroov Resorts as "Not Cooperating" vide its press release dated September 23, 2021. EMSON GEARS: CRISIL Withdraws B+ Rating on INR45.24cr Loan to B+ ---------------------------------------------------------------- CRISIL Ratings has withdrawn its rating on the bank facilities of Emson Gears Limited (EGL; part of the Emson group) on the request of the company and after receiving no objection certificate from the bank. The rating action is in-line with CRISIL Rating's policy on withdrawal of its rating on bank loan facilities. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 45.24 CRISIL B+/Stable/Issuer Not Cooperating (Withdrawn) CRISIL Ratings has been consistently following up with EGL for obtaining information through letters and emails dated September 30, 2019, and March 9, 2020 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of EGL. This restricts CRISIL Ratings' ability to take a forward looking view on the credit quality of the entity. CRISIL Ratings believes that rating action on EGL is consistent with 'Assessing Information Adequacy Risk'. CRISIL Ratings has Continues the ratings on the bank facilities of EGL to 'CRISIL B+/Stable Issuer not cooperating'. For arriving at the rating, CRISIL Ratings has combined the business and financial risk profiles of EGL and Osho Forge Ltd (OFL). This is because these companies, collectively referred to as the Emson group, operate in the same line of business and are under a common management. OFL manufactures gears, crown wheels and pinions, all of which are used as raw material by EGL. CRISIL Ratings also used to consolidate Osho Gears and Pinion Ltd (OGPL), but it has now merged with EGL. The Emson group comprises EGL and OFL. EGL was established in 1981 as a partnership firm, Emson Sales, by Mr. Ashok Kumar Dhall and Mr. Vimal Dhall, and was reconstituted as a limited company in 1981. It manufactures gears. In 1993, the group established OFL to implement vertical integration into the forgings segment. In the same year, it set up another facility to manufacture gears and pinions under OGPL, which is now merged with EGL. GAJANAN AGRO: CARE Keeps B Debt Rating in Not Cooperating --------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Shri Gajanan Agro Industries (SGAI) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.41 CARE B; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category Short Term Bank 0.05 CARE A4; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 11, 2020, placed the rating(s) of SGAI under the 'issuer non-cooperating' category as SGAI 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. SGAI continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 27, 2021, October 7, 2021, October 17, 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. SGAI, was established as a partnership concern in the year 2012. The firm is engaged in ginning and pressing of cotton and extraction of oil from cotton seed. SGAI has a group concern namely Shri Gajanan Trading Company (SGTC) which is engaged in the same business as of SGAI. GARG ISPAT: CARE Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Garg Ispat Udyog Limited (GIUL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 9.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 6.00 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 28, 2020, placed the rating(s) of GIUL under the 'issuer non-cooperating' category as GIUL 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. GIUL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 13, 2021, September 23, 2021, October 3, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Delhi based, Garg Ispat Udyog Ltd. (GIUL) was incorporated in 1987 and is being managed by Mr. Manish Gupta, Ms. Nidhi Gupta, Ms. Alka Gupta and Ms. Kamini Goyal. GIUL is engaged is manufacturing of MS black pipes, scaffolding, PPG fabricated sheets for Buildings, MS fabrications etc. GUIL procures key raw-material viz. HR-coil, aluminum extrusion, aluminum form work from traders. The company sells its products domestically to real estate developers and construction contractors. GENGA MILLS: CARE Moves D Debt Rating to Not Cooperating Category ----------------------------------------------------------------- CARE Ratings has migrated the rating on bank facilities of Sree Genga Mills Private Limited to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 9.94 CARE D; ISSUER NOT COOPERATING Facilities Rating moved to ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE has been seeking information from Sree Genga Mills Private Limited to monitor the ratings vide e-mail communications dated August 4, 2021, September 30, 2021 October 29, 2021, among others and numerous phone calls. However, despite repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The rating on Sree Genga Mills Private Limited's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. The rating assigned to bank facilities of Sree Genga Mills Private Limited are constrained by delays in servicing debt obligations due to stressed liquidity position, small scale of operations, weak capital structure and debt coverage indicators, susceptibility of profits at volatile price fluctuation and seasonality associated with availability of cotton and highly fragmented industry with intense competition from large number of players. Detailed description of the key rating drivers At the time of last rating on November 4, 2020 the following were the rating strengths and weaknesses (updated for the information available from Registrar of Companies): Key Rating Weaknesses * Delays in servicing debt obligations: The company was unable to generate sufficient cash flows leading to strained liquidity position resulting in delays in meeting its debt obligations. * Small scale of operations: The scale of operations of the company continues to remain small albeit marginally improved to INR21.31 crore in FY20 from INR21.25 crore in FY19 due to improved sales of cotton yarn. * Weak capital structure and debt coverage indicators: The capital structure of the company remained weak albeit improved with overall gearing at 2.70x as of March 31, 2020 as against 2.73x as of March 31, 2019. The debt coverage indicators remained weak with Total debt/GCA at 17.64x as of March 31, 2020 as against 15.98x as of March 31, 2019. * Susceptibility of profits at volatile price fluctuation and seasonality associated with availability of cotton: The cotton industry is highly fragmented in nature with several organized and unorganized players. Prices of raw cotton are highly volatile in nature and depend upon the factors like area under cultivation, crop yield, and demand-supply scenario. The cotton processing operators procure raw materials in bulk quantities to avail discount from suppliers to mitigate the seasonality associated with availability of cotton resulting in higher inventory holding period. Further, the profitability margins of the company are susceptible due to fluctuation in raw material prices. * Highly fragmented industry with intense competition from large number of players: The company is engaged in manufacturing of cotton yarn which is highly fragmented industry due to the presence of large number of organized and unorganized players in the industry resulting in huge competition. * Poor liquidity: The liquidity position of the company remains stretched to service the repayment obligations along with fully utilized WC limits and moderate with cash balance of INR0.02 crore as on March 31, 2020. The operating cycle had elongated to 114 days in FY20 as against 99 days in FY19 due to stretched inventory of 143 days in FY20 (PY:133days). The company holds sufficient raw material as stock to meet its continuous demand from customers. The company has availed moratorium on its existing bank facilities as relief measure for covid pandemic from March to August 2020 and availed GECL of INR 0.60 crore on October 2020 with tenure of 24 months including moratorium of 6 months. Tamil Nadu-based, Sree Genga Mills Private Limited (SGMPL) was established as a partnership firm in 1993 by 9 partners and later in 2005, the constitution of the entity was changed to private limited. The company is managed by R. Srinivasan. The company is engaged in spinning of cotton yarn (20 to 60 counts) with a total installed capacity of 12,096 spindles with a total production capacity of 3200 kg/day as on October 2020. Located at Sattur, Tamil Nadu, SGMPL has its customer base in Tamil Nadu and Maharashtra. SGMPL purchases raw cotton mainly from dealers based at Warangal (Telangana) and Raichur (Karnataka). GOLDSTAR POLYMERS: CARE Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Goldstar Polymers Limited (GPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term/ 7.00 CARE D/CARE D; ISSUER NOT Short Term COOPERATING; Rating continues Bank Facilities to remain under ISSUER NOT COOPERATING category Short Term Bank 0.25 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 2, 2020, placed the rating(s) of GPL under the 'issuer non-cooperating' category as GPL 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. GPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 18, 2021, September 28, 2021, October 8, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. Established in 1990 as a proprietorship concern by Mr. Prem Prakash Saraogi, Goldstar Containers (GC) was later converted into a public limited company as Goldstar Polymers Limited (GPL) in 2006. The company is engaged in manufacturing of plastic drums which find application in carriage of various materials across different industries viz. oil & petroleum, lubricants, inks, chemicals, etc. The manufacturing facility of the company is located in Daman, equipped with an installed capacity of 2,500 MTPA utilized at ~65% during FY18. The products manufactured by the company are entirely sold in the domestic market, whereas the primary raw material viz. HDPE is sourced locally from domestic market and also import from UAE [imports comprise 13.07% in FY18 (prov.)]. GREENWAY CLOTHING: CARE Keeps B- Debt Rating in Not Cooperating --------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Greenway Clothing (GC) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 8.73 CARE B-; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 0.75 CARE A4; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 11, 2020, placed the rating(s) of GC under the 'issuer non-cooperating' category as GC 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. GC continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 27, 2021, October 7, 2021 and October 17, 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). Greenway Clothing (GC) was established in the year 2005 as a proprietorship entity by Mr. A. Sivabalan of Tirupur for manufacturing and export of knitted readymade (hosiery) garments (that includes T-Shirt, nightwear, pyjamas & kids wear) to USA, Netherlands, UK, Germany, Italy, Belgium and Poland. The production is against confirmed orders. The unit has facilities for cutting, stitching, sewing, ironing, packing & printing, while knitting, washing & embroidery is done on job work basis. Mr. A. Sivabalan and Mrs. Rajeswari (wife of Mr. A. Sivabalan) are the directors of M/s Greenway Clothing India Private Limited (GCIPL) which was established in December 2014 and is engaged in manufacturing of hosiery garments (predominantly for domestic sales). GSM MEGA: CRISIL Downgrades Rating on INR60cr Loans to D -------------------------------------------------------- CRISIL Ratings has downgraded the rating on the bank facilities of GSM Mega Infrastructures Pvt Ltd (GSM) to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B/Stable Issuer Not Cooperating' due to delays in servicing debt obligations. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 25 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B/Stable ISSUER NOT COOPERATING') Long Term Loan 35 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B/Stable ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with GSM for obtaining information through letters and emails dated August 19, 2021 and October 6, 2021 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of GSM, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on GSM is consistent with 'Assessing Information Adequacy Risk'. Based on available information, CRISIL Ratings has downgraded the rating on the bank facilities of GSM to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B/Stable Issuer Not Cooperating' due to delays in servicing debt obligations. GSM was set up in 2011 by Mr. M V S Seshagiri Rao, Mr. Murali Mohan Reddy, Mr. Siva Shankar Reddy, and Mr. Veera Sekhar Reddy. The company develops real estate. Its ongoing commercial real estate project, comprising a mall and a multiplex, is at Serilingampally in Telangana. JAGANNATH EDUCATIONAL: CARE Keeps D Debt Rating in Not Cooperating ------------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Shri Jagannath Educational Health and Charitable Trust (SJEHCT) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 14.29 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 9, 2020, placed the rating(s) of SJEHCT under the 'issuer non-cooperating' category as SJEHCT 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. SJEHCT continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 25, 2021, October 05, 2021 and October 15, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). SJCET is a non-minority, charitable trust registered under Section 12A of the Income Tax Act. SJCET was established in 2008 by Mr S. A. Subramanian, along with Mr O. M. Manivelu and Mr S. SatheeshKrishnaraj. However, Mr. SatheeshKrishnaraj resigned from the Trusteeship and was replaced by Mr. Durgashankar (a BE graduate, son-in-law of Mr. Subramanian), in AY 2011-12. Mr Arul Selvan, (Mr Durga Shankar's brother) is the Vice Chairman and Joint Managing Trustee (BE, MBA).The dayto-day activities of SJCET are managed by the executive committee, headed by Mr S. A. Subramanian (Managing trustee). The trust operates an engineering college under the name of JCT College of Engineering & Technology (JCTET) at Coimbatore, Tamil Nadu, established in AY11-12. JCTET, in its fifth year of operation, had student strength of 3,800 in AY15-16 (including ME). In AY14-15, SJCET commenced JCT College of Polytechnic (JCTP) with a sanctioned intake of 300 students offering Mechanical (120), Petrochemical (60), Civil (60) and Electrical and Electronic Engineering (60) courses. KAMAL IDEAL: CARE Keeps D Debt Rating in Not Cooperating Category ----------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Kamal Ideal Infratech Private Limited (KIIPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 0.79 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 4, 2020, placed the rating(s) of KIIPL under the 'issuer non-cooperating' category as KIIPL 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. KIIPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 20, 2021, September 30, 2021 and October 10, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Incorporated in 2012, Kamal Ideal Infratech Pvt Ltd (KIIPL) is engaged in real estate development. The company is currently developing a group housing project in Nangal Kalan village, sector-64, Kundli, Sonepat. The company was promoted by Mr. Ravi Sharma and Mr. Shekhar Grover. Prior to KIIPL, the promoters have been involved in the real estate development of residential and commercial properties in the NCR region. KASHIPUR SITARGANJ: Ind-Ra Keeps 'D' Loan Rating in Non-Cooperating ------------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Kashipur Sitarganj Highways Pvt Ltd.'s bank loan rating in the non-cooperating category. The issuer did not participate in the surveillance exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating action is: -- INR4.220 bil. Senior long-term rupee loans (long term) due on March 2029 maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on October 24, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Kashipur Sitarganj Highways is a special purpose vehicle that was incorporated to implement a 77.2km two-to-four lanes' expansion project between Kashipur and Sitarganj in Uttarakhand on NH74, under a 21-year concession from the National Highways Authority of India ('IND AAA'/Stable). LGW INDUSTRIES: CARE Assigns B Rating to INR27.00cr LT Loan ----------------------------------------------------------- CARE Ratings has assigned rating to the bank facilities of LGW Industries Limited, as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank Facilities 27.00 CARE B; Stable Assigned Detailed Rationale & Key Rating Drivers The rating assigned to the bank facilities of the LGW constrained by relatively small scale of operations, vulnerability of margins to volatility in prices of traded goods, significant dependence on a handful of customers, weak financial risk profile characterized by thin profitability, negative net worth and working capital intensive nature of operations. However, the rating derives strength from experienced promoters with satisfactory operational track record and stable demand of cotton over the medium term. Rating Sensitivities Positive Factors - Factors that could lead to positive rating action/upgrade: * Sharp improvement in scale of operation and profitability margin. * Increase in net worth coupled with efficient management of working capital leading to improvement in capital structure and debt protection metrics Negative Factors- Factors that could lead to negative rating action/downgrade: * Decline in profitability due to higher advertisement spending leading to losses. * Elongation in working capital cycle Detailed Rationale & Key Rating Drivers Key Rating Weaknesses * Relatively small scale of operations: LGW is a small-sized player in trading industry. During FY21, the firm achieved a PAT of INR0.78 crore on a total income of INR43.13 crore. The total capital employed was low at INR7.94 crore as on March 31, 2021. The small size acts as a hindrance to achieve economies of scale for the firm. Further, the trading industry is highly competitive and fragmented in nature which in turn limits the bargaining power of LGW with customers. * Vulnerability of margins to volatility in prices of traded goods: The prices of traded goods depend on the demand-supply situation of the same in the domestic market. LGW source the miscellaneous item like, imitation Jewelleries, machineries, and other items from domestic players and exports it directly to the customers in Bangladesh or through the intermediaries on commission basis. Prices of these goods are volatile in nature. * Significant dependence on a handful of customers: LGW sells its products to various traders in the overseas market. Top five customers accounted for above 70% of the total export in FY21 and hence, it is prone to customer concentration risk. However, LGW gets a good number of repeat orders from most of its existing customers due to its earlier involvement thus mitigating this risk to an extent. * Weak financial risk profile characterized by thin profit margins, negative net worth and working capital intensive nature of operations: LGW has a leveraged capital structure marked by negative net worth as on Mar 31, 2021. Debt profile of the company primarily comprised of term loan against property and unsecured loan from corporate bodies, promoters and relatives. LGW has a relatively long inventory holding period of 73 days in FY21 on account of high level of inventory required to be maintained to ensure ready availability of stock to dispatch. This apart, LGW also allowed moderate credit period to its customers resulting in moderate average collection period of 28 days in FY21. High inventory period coupled with moderate debtor collection period has resulted in high working capital intensity of its business. The firm does not have any working capital facilities, and all of its working capital requirements are met through creditors and secured/unsecured loans. Furthermore, Interest coverage ratio remained moderately comfortable 2.42x in FY21. The total debt to GCA remained high at 12.93x as on March 31, 2021. Key Rating Strengths * Experienced promoters and satisfactory operational track record: Shri Abhay Kumar Gupta (aged 52 years), the promoter of the LGW, has been in same line of business for more than last 25 years and has immense knowledge of the raw cotton trading business in domestic as well as international market. He is supported by his son Shri Bharat Gupta who also has around 10 years of experience in the same line of business. * Stable demand of cotton over the medium term: The company is engaged in merchant trading of miscellaneous item like, imitation Jewelries, machineries, FMGC products and other items to the international market majorly Bangladesh. Going forward, the company is planning to explore into the export of raw cotton and has applied for fresh working capital limits. Cotton plays an important role in the Indian economy as the country's textile industry is predominantly cotton based. India is one of the largest producers as well as exporters of cotton yarn. The states of Gujarat, Maharashtra, Telangana, Andhra Pradesh, Karnataka, Madhya Pradesh, Haryana, Rajasthan, and Punjab are the major cotton producers in India. Liquidity analysis: Stretched The liquidity position of company is stretched due to tightly matched cash accrual and term debt obligation over the medium term. In FY22, the company expects to generate GCA of INR1.5-2 crore as against repayment obligation of INR1.3 crore. However, LGW is in discussion with a lender for new working capital limit which would improve company's liquidity. LGW, a public limited company, formed in 1998 by one Shri Abhay Kumar Gupta of Kolkata, West Bengal is engaged in merchant trading of miscellaneous item like, imitation Jewelries, machineries, FMGC products and other items to the international market majorly Bangladesh. Previously, the firm was involved in merchant trade of raw cotton, which was later terminated in 2016 owing to unanticipated losses in the past. LYOPHILIZATION SYSTEMS: CARE Cuts Rating on INR2.50cr Loan to B+ ---------------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Lyophilization Systems India Private Limited (LSIPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 2.50 CARE B+; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category and Revised from CARE BB-; Stable Short Term Bank 4.00 CARE A4; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 5, 2020, placed the rating(s) of LSIPL under the 'issuer non-cooperating' category as LSIPL 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. LSIPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 21, 2021, October 1, 2021, October 11, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Lyophilization Systems India Private Limited (LSIPL) was established in May 2003 by Mr. M S Prasad and Mr. D Narendar. LSIPL is engaged in manufacturing of industrial freeze drying equipment which are called as Lyophilizers. LSIPL's scope of activities include designing, assembling, testing, supplying, installation of this customized freeze-drying equipment at customer's site, commissioning and validation of the same. The Lyophilisers are used in high-end pharmaceutical, biotech and research laboratories. LSIPL's engineering and designs staff have decades of experience in freeze-drying. Apart from the above, company also provides the yearly servicing of equipment and supply of spares. LSIPL's list of clients includes some of the well-known names such as Cadila Health Care Limited and Dr. Reddy's Laboratories Private Limited, Simson Lifesciences Private Limited, Intervet India Private Limited, Natco Pharma Limited and Hester Biosciences Nepal Private Limited. M. S. ENGINEERING: CARE Keeps B- Debt Rating in Not Cooperating --------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of M. S. Engineering (MSE) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 4.48 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category Short Term Bank 1.50 CARE A4; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 20, 2020, placed the rating(s) of MSE under the 'issuer non-cooperating' category as MSE 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. MSE continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated October 6, 2021, October 16, 2021, October 26, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). M. S. Engineering (MSE) was established on November 30, 1986 as a partnership firm by two partners Mr. Debabrata Das and Mr. Satyabrata Das. The registered office of the firm is situated at Purba Medinipur, West Bengal. Since its inception, the firm has been engaged in civil construction business in the segments like construction of road, bridges etc. The firm procures orders through tenders and executes orders floated by the various Govt. entities. MEENAKSHI ENERGY: Ind-Ra Affirms 'D' Bank Loan Rating ----------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Meenakshi Energy Limited's (MEL) bank loans' rating at 'IND D (ISSUER NOT COOPERATING)'. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Thus, the rating is based on the best available information. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The detailed instrument-wise rating actions are: -- INR10.570 bil. Senior bank loan phase I (Long-term) affirmed with IND D (ISSUER NOT COOPERATING) rating; -- INR23,311.7 bil. Senior bank loan phase II (Long-term) affirmed with IND D (ISSUER NOT COOPERATING) rating; and -- INR11.310 bil. Additional term loan (Long-term) affirmed with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information. KEY RATING DRIVERS The affirmation reflects MEL's continued delays in debt servicing. MEL has been admitted into the insolvency process in accordance with the National Company Law Tribunal's order dated November 7, 2019. The company is undergoing the corporate insolvency resolution process and is being managed by a resolution professional. As per the Central Electricity Authority, the company's 300MW capacity operated at a plant load factor of 32.06% in 1HFY22 (FY21: 4.83%). The construction of additional capacity of 700MW has been stalled. RATING SENSITIVITIES Positive: Clarity on business continuity and timely debt servicing for at least three consecutive months will lead to a positive rating action. COMPANY PROFILE MEL, founded by the Meenakshi Group of companies, is setting up coal-based thermal power plants of 300MW (2 X 150MW) and 700MW (2 X 350MW) in two phases in the coastal area of Thaminappatnam in Andhra Pradesh at a cost of INR14,280 million and INR50,050 million, respectively. The phase I of the project has been operational since April 2013, while the phase II is under construction. OSHO FORGE: CRISIL Withdraws B+ Rating on INR15cr Cash Loan ----------------------------------------------------------- CRISIL Ratings has withdrawn its rating on the bank facilities of Osho Forge Limited (OFL; part of the Emson group) on the request of the company and after receiving no objection certificate from the bank. The rating action is in-line with CRISIL Rating's policy on withdrawal of its rating on bank loan facilities. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 15 CRISIL B+/Stable/Issuer Not Cooperating (Withdrawn) CRISIL Ratings has been consistently following up with OFL for obtaining information through letters and emails dated September 30, 2019, and March 9, 2020 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of OFL. This restricts CRISIL Ratings' ability to take a forward looking view on the credit quality of the entity. CRISIL Ratings believes that rating action on OFL is consistent with 'Assessing Information Adequacy Risk'. CRISIL Ratings has Continues the ratings on the bank facilities of OFL to 'CRISIL B+/Stable Issuer not cooperating'. For arriving at its ratings, CRISIL Ratings has combined the business and financial risk profiles of Emson Gears Limited (EGL) and OFL. This is because these companies, collectively referred to as the Emson group, operate in the same business and are under a common management. OFL manufactures gears, crown wheels and pinions, all of which are used as raw material by EGL. CRISIL Ratings used to consolidate Osho Gears and Pinion Ltd (OGPL), but this is now merged with EGL. The Emson group comprises EGL and OFL. EGL was established as a partnership firm, Emson Sales, in 1981. The firm, founded by Mr. Ashok Kumar Dhall and Mr. Vimal Dhall, manufactures gears and was reconstituted as a limited company in 1981. In 1993, the group established OFL to implement vertical integration into the forgings segment. In the same year, OGPL was set up to manufacture gears and pinions. This company is now merged with EGL. PERICHI GOUNDER: Ind-Ra Keeps 'D' Loan Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained the ratings on P. Perichi Gounder Memorial Charitable Trust's (PPG) bank facilities in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-up by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The ratings will continue appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR66.42 mil. Bank loans (Long-term) maintained in non- cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR65.00 mil. Fund-based working capital facility (Long-term) maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The rating was last reviewed on November 8, 2019. Ind-Ra is unable to provide an update as the agency does not have adequate information to review the rating. COMPANY PROFILE Founded in 1992, PPG is a public charitable trust based in Coimbatore, Tamil Nadu. The trust, managed by Dr. L. P. Thangavelu, has a cancer hospital and nine educational institutions and offers primary to higher education. RAJCHANDRA AGENCIES: CRISIL Cuts Rating on INR20cr Loan to B+ ------------------------------------------------------------- CRISIL Rating has downgraded its rating on the long-term bank facility of Rajchandra Agencies (RA) to 'CRISIL B+/Stable' from 'CRISIL BB-/Stable'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 20 CRISIL B+/Stable (Downgraded from 'CRISIL BB-/Stable') The downgrade reflects firm's weakening financial risk profile due to unanticipated increase in term debt to INR5.25 crores as on March 31, 2021 compared to INR0.09 crores in the previous fiscal. Repayments of these loans are expected to create a pressure on the liquidity of the firm over medium term with cash accruals expected to remain insufficient against repayment obligations. The business risk profile remains steady with stable revenues and operating margins. The rating continues to reflect firm's below average financial risk profile, and high geographical concentration in revenue. These weaknesses are partially offset by the extensive experience of RA's partners in distribution of fast-moving consumer goods (FMCG), the diverse product portfolio, and longstanding relationships with customers. Key Rating Drivers & Detailed Description Weaknesses: * Below average financial risk profile: Financial risk profile is average with net worth and total outside liabilities to adjusted net worth ratio of INR7.32 crore and 3.37 time respectively as on March 31, 2021. Debt protection metrics are weak with interest cover of 1.16 time and net cash accruals to adjusted debt ratio of 0.01 time as on March 31, 2021. * Geographical concentration in revenue profile: RA has a limited geographical reach for its distributorship business. The firm is a distributor for Airtel's prepaid products (for Dahisar, Borivali, Mira Road and Bhayander), ITC's products (Dahisar and Borivali) and Vivo mobile's handsets (Nalasopara to Dahanu) all within Western Mumbai region. With the entire revenue generated from few western suburbs of Mumbai, the firm faces high geographic concentration risk. Strengths: * Extensive experience of partners: RA's partners, Mr. Mukesh Gupta and Mr. Hari Gupta, have been engaged in distribution of FMCG products for nearly two decades. Over the years, they have built strong relationships with key suppliers and customers. Partners have maintained association with its major principals- ITC and Airtel, for almost a decade which has supported business risk profile of the firm. * Diverse product portfolio: The firm is wholesale distributor for Bharti Airtel Ltd, ITC (cigarettes, confectionaries, noodles, aata, soaps, deodorants etc), and Vivo (mobile handsets). The diversified product range reduces dependence on any particular brand. Liquidity: Poor Bank limits are fully utilized with instances of overdrawing albeit for less than 30 days during past twelve months ended August 2021. Cash accrual are expected to be over INR0.50-0.93 crores which are insufficient against term debt obligation of INR1.1-1.7 crores over the medium term. Liquidity is supported by enhancement in CC lines of INR3 crores received in September 2021 and emergency covid loan of INR5.25 crores. Current ratio is low at 1.38 times on March 31, 2021. Outlook Stable CRISIL Rating believes RA will continue to benefit from its established relationship with customers and suppliers, and the extensive experience of its partners. Rating Sensitivity factors Upward factors * Sustained increase in revenue or profitability leading to Net cash accruals to repayment obligation ratio (NCA/RO) of over 1.5 times * Improvement in financial risk particularly debt protection metrics Downward factors * Decline in revenues or profitability, resulting in net cash accruals to remain low * Large capital withdrawals from partners or stretch in working capital cycle resulting in deterioration in financial risk profile with bank limit utilization continuing to remain high * Weaker debt protection metrics; especially interest coverage ratio of less than 1.1 times Set up in 2004 as a partnership concern by Mr. Mukesh Gupta and Mr. Hari Gupta, RA is an authorized distributor for Bharti Airtel Ltd's prepaid products; ITC's cigarettes, foods, and personal care products; and Vivo's mobile handsets for western suburbs of Mumbai. RAKE POWER: CARE Keeps D Debt Rating in Not Cooperating Category ---------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Rake Power Limited (RPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 7.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Long Term/ 10.00 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 November 5, 2020, placed the rating(s) of RPL under the 'issuer non-cooperating' category as RPL 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. RPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 21, 2021, October 1, 2021, October 11, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Rake Power Limited (RPL) incorporated on June 20, 2000, is a subsidiary of Shalivahana Green Energy Limited (SGEL) and has Setup a biomass-based 10.00 MW power plant at Ramtek Tehsil, Nagpur, Maharashtra. The project achieved Commercial Operations Date (COD) on July 25, 2008 and the project was completed at total cost of INR41 crore. The company has entered in to Energy Purchase Agreement (EPA) with Maharashtra State Electricity Distribution Company (MSEDCL) for a period of 13 years from COD. At present, the company is billing as per the tariff of INR6.73 per kWh. Hyderabad based Shalivahana group has multiple business operations in construction, real estate, power generation and education. RPL is currently in talks for liquidation, however, the same has not been finalized yet. RIYARA TRADING: CARE Lowers Rating on INR12.00cr LT Loan to B+ -------------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Riyara Trading (RT), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 12.00 CARE B+; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category and Revised from CARE BB-; Stable Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 9, 2020, placed the rating(s) of RT under the 'issuer noncooperating' category as RT 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. RT continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 25, 2021, October 5, 2021 and October 15, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings assigned to the bank facilities of RT have been revised on account of non-availability of requisite information. Riyara Trading (RT) was established on April 1, 2014 by Mr. Saravanan C (Proprietor). RT established in 2014 is involved mainly in trading of bulk Cement. RT deals in various grades of cement such as OPC43, OPC53, PPC, Slag cement which is used for general constructions, RCC Structures, Multi storied buildings etc. ROSA POWER: Ind-Ra Hikes Bank Loan Rating to 'BB' ------------------------------------------------- India Ratings and Research (Ind-Ra) has upgraded Rosa Power Supply Company Limited's (RPSCL) debt facilities as follows: -- INR32.760 bil. (outstanding INR4.720 bil. as of September 30, 2021) Rupee term loan due on September 30, 2024 upgraded with IND BB/Stable rating; and -- INR14,414.25 bil. (USD192.19 mil.) (outstanding INR1925.25 mil. as of September 30, 2021)External commercial borrowing* due on December 31, 2023 upgraded with IND BB/Stable rating. *converted to INR at USD1 = INR75 The upgrade reflects the substantial reduction in RPSCL's term loans, external commercial borrowings (ECBs), and fund-based working capital limits, its stable operational track record, the absence of any instances of inter-company transactions with group companies (other than management fees and some expenses) during FY21 and its timely debt servicing since FY20, according to the monthly no-default statements submitted to Ind-Ra and the audited annual reports of FY20 and FY21. While the cost-plus nature of the project and the escrow mechanism provide adequate visibility of cash flows over the medium-to-long term, the ratings are constrained by the company's stretched liquidity, which provides limited cushion for any reduction in collection efficiency over the ensuing six months. The weak financial flexibility of RPSCL's sponsor, Reliance Power Limited (R-Power), is also a constraining factor. KEY RATING DRIVERS Reduction in Borrowings: RPSCL's outstanding term loans and ECB dropped to about INR6.65 billion as of September 30, 2021 from about INR16.16 billion as of March 31, 2020, in line with the amortization schedule. This would alleviate stress on the company's cash flows, and would lead to an improvement in the debt coverages FY22 onwards. The remaining debt will be repaid fully by June 2024. Furthermore, RPSCL utilized its surplus generated during FY21 to repay and reduce its fund-based working capital limits by about INR5.3 billion. The fund-based working capital limit currently available to the company amounts to about INR7.5 billion, which was fully utilized as of September 2021. Stable Operational Track Record: RPSCL's two phases of 600MW each have been operational for over 11 and nine years, respectively. The plant availability during FY21 was about 91% (FY20: 98%), higher than the stipulated normative availability of 85%. This enabled the plant to recover entire fixed charges under the power purchase agreement (PPA) with Uttar Pradesh Power Corporation Limited (UPPCL). The project's plant load factor increased to 64% in FY21 (FY20: 57%) as power demand increased on a yoy basis during the year. Coal stocks, while being low during 1HFY22 as seen across thermal plants in the country, have been adequate for plant operations. The project's long-term fuel supply agreement with Central Coalfields Limited addresses the supply risk to an extent. Plant availability and coal stock will be key monitorables for the rating. Favorable PPA Structure: RPSCL's ratings are supported by a take-or-pay clause in its PPA with UPPCL. All the major costs, including landed fuel costs, are pass-through in nature, mitigating any revenue risk. According to the PPA, in case of a payment default by UPPCL under the escrow account mechanism, RPSCL will have recourse to the government of Uttar Pradesh's guarantee after 30 days of the default from the due date of payment (only for phase 1 of 600MW), which provides some surety to payments from the offtaker. Additional Capex Approval: An Uttar Pradesh Electricity Regulatory Commission (UPERC)-appointed expert committee had recommended granting approval for an additional capex of INR4,215.5 million incurred by RPSCL during FY14-FY17. Against this, the UPERC provided approval for INR2,737 million (lower than Ind-Ra's earlier expectations), vide its tariff order dated 4 February 2020. RPSCL has filed a petition with the Apellate Tribunal for Electricity for the balance unapproved amount. Ind-Ra will continue to monitor the same. The management has also informed the agency that undischarged liabilities for FY11-FY15 have been discharged by the company and a petition for claiming the same in the multi-year tariff order has been filed with the UPERC. The management expects the capex approval order and the discharge of the undischarged liabilities to translate into additional revenue (FY22: INR580 million, FY23: INR550 million, and so on, reducing for the remainder of the PPA term) in addition to the arrears of about INR1,780 million. While these developments are favorable for the company, there is some uncertainty regarding the timelines that will be required for their realization. Extension of Flue Gas Desulphurization (FGD) Timeline Provides Relief: According to the new environmental norms for thermal plants announced by the ministry of environment, forest and climate change, the government of India, RPSCL has to install an FGD system in its plants to meet the new emission standards. The deadline for the installation process has now been extended to December 2024 from December 2021, providing relief to the project with respect to funding of the required capex. The management estimates capex of about INR7,500 million to be required for the installation. Given that the debt obligations of RPSCL will sharply reduce from FY23, the management expects to be able to meet the capex requirements from the company's internal accruals. The cost incurred for FGD installation will be a pass-through under the PPA with UPPCL. RPSCL is seeking an in-principle approval of the capital cost before incurring the capex and has challenged an UPERC order stating that cost approval would be considered post the incurring of the same. Ind-Ra will continue to monitor the status of FGD installation, and any significant delays, resulting in possible penalties on RPSCL, will be credit negative. Liquidity Indicator - Stretched: RPSCL's cash balance was about INR320 million as on 31 October 2021 (FYE21: INR513 million). The company utilized its surplus in FY21 to reduce the working capital limits by about INR5.3 billion, resulting in considerable savings in terms of future interest. While RPSCL has a drawing power higher than its existing working capital utilization, reduction in the commensurate limits has reduced its financial flexibility. Furthermore, its existing liquidity position continues to be a cause for concern, given the limited liquid cash and the absence of a debt service reserve. Given the lower debt remaining on the books of RPSCL, the debt service coverages are comfortable, with a projected debt service coverage ratio of above 1.3x from FY22. Collection Efficiency Impacted by COVID-19: The project's receivables improved to about INR3,180 million at FYE21 from about INR8,300 as on 30 June 2020. However, it deteriorated again during 1QFY22 due to the impact of the second wave of COVID-19 as RPSCL had a collection efficiency of about 50% during the quarter. Consequently, the receivables rose to about INR6,900 million as of September 2021. Given the absence of liquidity buffers, any severe dips in collection (as seen during the peak of the two COVID-19 waves) during 2HFY22 will impact the company's debt servicing ability. Single Counterparty Risk, Partly Mitigated by Escrow Mechanism Under PPA: RPSCL is exposed to single counterparty credit risk, as it sells electricity only to UPPCL. The gap between the average revenue realized and the average cost of supply on subsidy booked basis for the distribution companies of Uttar Pradesh decreased to INR0.34/kWh in FY20 (FY19: INR0.56/kWh FY18: INR0.45/kWh) and payable days rose to about 269 (217; 174), according to the Report on Performance of State Power Utilities 2019-20. The volatility in UPPCL's payment cycle is mitigated, to an extent, by the default escrow mechanism of the PPA. According to the mechanism, UPPCL's end-consumers will directly deposit the billed amounts into collection centers of UPPCL, post which the entire collections will be escrowed to the accounts of RPSCL. UPPCL has identified various revenue circles with an average monthly revenue of about INR3,570 million. The escrow cover is sufficient to cover the monthly billing for the entire project capacity of 1,200MW. Weak Financial Flexibility of Sponsor: The ratings are constrained by the deteriorating financial flexibility of the project's sponsor, R-Power. RPSCL's outstanding inter-corporate deposits given to R-Power remained unchanged on a yoy basis at INR30.15 billion at FYE21. In FY20, a sum of INR70 million had been given to the sponsor in the form of intercorporate deposits. The chances of recovering the same in the near term continue to be remote, given the sponsor's weak liquidity profile. Any further fund movements from RPSCL to its sponsor/group companies prior to senior debt servicing will continue to constrain the ratings. The management has stated that there are no plans of taking out any funds from RPSCL until the debt is fully repaid, which provides comfort. In addition to the trust and retention account mechanism, Ind-Ra also derives comfort from the presence of an agency for specialized monitoring appointed by the lenders for monitoring RPSCL's cashflows. RATING SENSITIVITIES Negative: The following factors, individually or collectively, could lead to a rating downgrade: - plant availability below the normative level of 85% for a sustained period of time - debt service coverage ratio below 1.15x for a sustained period of time as per audited annual accounts - any delay or any adverse action on the multi-year tariff approval for the control period (FY19-FY24) by the regulator - a significant increase in the receivables from the offtaker - intercompany fund movements to the sponsor or any other group company and a further reduction in cash liquidity available with the project Positive: The following factors, individually or collectively, could lead to a rating upgrade: - sustained operational and financial performance in line with Ind-Ra's base case estimates, and the timely debt servicing for a sustained period - sustained liquidity build-up equivalent to at least three months of debt servicing - a significant improvement in the sponsor's credit profile COMPANY PROFILE RPSCL is a coal-fired thermal power plant located at Rosa, Shahjahanpur District, Uttar Pradesh. It has set up a 1,200MW (4 X 300MW) power plant in two phases of 600MW (2 X 300MW each) capacity. The project site is located 4km from the Rosa railway station, about 160km from Lucknow. The phase I commenced commercial operations in July 2010, while the phase II came online in April 2012. R-Power's generation capacity is about 6,000MW, mainly in thermal power and some renewable capacity. Apart from RPSCL, its operational projects include the Butibori project in Nagpur, Maharashtra (600MW), an ultra-mega power project in Sasan, Madhya Pradesh (3,960MW), a solar PV project in Dhursar, Rajasthan (40MW), a concentrated solar power project in Pokhran, Rajasthan (100MW) and a wind project in Vashpet, Maharashtra (45MW). In January 2020, Yes Bank Limited ('IND BBB'/Stable) acquired 29.97% of the post-issue paid up share capital of RPSCL, pursuant to the invocation of pledge of RPSCL's shares provided by R-Power to Yes Bank. SEASON RUBBERS: CRISIL Hikes Rating on INR7cr Cash Loan to B+ ------------------------------------------------------------- CRISIL Ratings has upgraded its rating on the long-term bank facilities of Season Rubbers Private limited (SRPL) to 'CRISIL B+/Stable' from 'CRISIL B/Stable'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') The upgrade reflects CRISIL Ratings belief that SRPL will sustain the improvement in the business risk profile and liquidity profile over the medium term. The company has moderate scale of operations and operating margins. In fiscal 2021, the operating margins improved to 2.92% from 2.01% in fiscal 2020, supported by steady demand and favorable rubber prices. The bank limit utilisations have been moderate at around 80%, along with increased net cash accruals from INR0.95 crore in fiscal 2020 to INR1.13 crore in fiscal 2021. The company also maintains cash and bank balances to support their liquidity cushion. The rating reflects modest scale of operations in the highly fragmented rubber processing business and the company's weak financial risk profile. These rating weaknesses are partially offset by promoters' extensive industry experience. Analytical Approach Unsecured loans from sister concern has been treated as debt as the company plans to repay the loans. Key Rating Drivers & Detailed Description Weaknesses: * Modest scale of operations: The scale of operations is modest in the highly fragmented rubber processing industry marked by numerous unorganized players. With low value addition from the processing of rubber into latex the profitability has remained constrained. Scale of operations will remain exposed to high competition in rubber processing segment. Revenue in FY 2021 is around INR92.31 crore. Also, amidst suspension of operations during Covid 19 lock down, revenue growth rate is expected to remain muted in the current fiscal. * Weak financial risk profile: Financial risk profile was marked by weak debt-protection metrics and low value addition nature of operations leading to modest net worth. Gearing was around 11.10 times as on March 31, 2021. The gearing is high as it also includes the unsecured loans from sister concerns, which has been treated as debt. Interest coverage continues to remain modest at around 1.72 times as on March 31, 2021. Strengths: * Promoters' extensive experience in rubber processing industry: The promoters' experience of over 30 years and their understanding of the latex processing industry and established relationship with suppliers and customers are expected to support business profile of SRPL over the medium term. Liquidity: Stretched Bank limit utilization is high at around 80.15% percent for the past thirteen months ended September 2021. Cash accrual are expected to be over INR1.29-INR1.52 crores which are sufficient against term debt obligation of INR1.06-INR1.29 crore over the medium term. In addition, it will be act as cushion to the liquidity of the company. Current ratio is moderate at 1.31 times on March 31, 2021 The promoters are likely to extend support in the form of unsecured loans to meet its working capital requirements and repayment obligations. The company also has cash and bank balances of around INR0.66 crores as of March 31, 2021 which supports liquidity. Outlook: Stable CRISIL Ratings expects SRPL to benefit over the medium term, backed by its promoters' longstanding experience in latex processing segment. Rating Sensitivity Factors Upward factors: * Strong revenue growth while maintaining EBITDA margin of more than 2.8% * Improvement in financial risk profile by reduction in the gearing levels Downward factors: * Major decline in revenues or operating margin falling below 1.8% * Stretch in working capital cycle * Undertaking any major debt-funded capex, which would further worsen the financial risk profile. Incorporated in 1976, Kottayam (Kerala)-based SRPL engaged in processing of raw latex to centrifuged latex. The operations of the company were taken over by Mr. Mathew Mathew of Royal Latex group and their family since November 2015. SHAH SPONGE: Ind-Ra Keeps 'BB' LT Issuer Rating in Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has maintained Shah Sponge & Power Limited's Long-Term Issuer Rating of 'IND BB (ISSUER NOT COOPERATING)' in the non-cooperating category and has simultaneously withdrawn it. The instrument-wise rating actions are as follows: -- INR130.80 mil. Non-fund based working capital limit** maintained in non-cooperating category and withdrawn; -- INR99.20 mil. Term loan*,# maintained in non-cooperating category and withdrawn; and -- INR100 mil. Fund-based working capital limit*,# maintained in non-cooperating category and withdrawn. **Maintained at 'IND A4+ (ISSUER NOT COOPERATING)' before being withdrawn *,#Maintained at 'IND BB (ISSUER NOT COOPERATING)' before being withdrawn KEY RATING DRIVERS The ratings have been migrated to the non-cooperating category as the company did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Ind-Ra is no longer required to maintain the ratings, as the agency has received no-objection certificates from all the issuer's lenders. This is consistent with the Securities and Exchange Board of India's circular dated March31, 2017 for credit rating agencies. COMPANY PROFILE Shah Sponge & Power was formed by Raj Kumar Shah for the production of sponge iron and billets in 2005. SHRIKRISHNA AVDHOOT: CARE Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Shrikrishna Avdhoot Agro Private Limited (SAAPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 4.75 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 04, 2020, placed the rating(s) of SAAPL under the 'issuer non-cooperating' category as SAAPL 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. SAAPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 20, 2021, September 30, 2021, October 10, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). SAAPL is a Latur (Maharashtra) based, Private Limited Company and was incorporated in year 2012. However, the company commenced its commercial operation as on September 2016. SAAPL is in the business of cultivation of Button Mushrooms. SAPL procures raw materials i.e. wheat straw, natural rye berries, agricultural grade gypsum, coconut coir and mushroom seeds from Pune-based dealers. The company sells its button mushrooms to Mumbai, Hyderabad, Pune, Nagpur based dealers. SIDHARTHA BUILDHOME: CARE Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Sidhartha Buildhome Private Limited (SBPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 129.00 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 28, 2020, placed the rating(s) of SBPL under the 'issuer non-cooperating' category as SBPL 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. SBPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 13, 2021, September 23, 2021 and October 3, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Incorporated in November 21, 1995, SBPL is engaged in the development of residential/group housing project in Gurgaon (Haryana). SBPL (formerly Pashupati Buildwell Pvt Ltd) is promoted by Mr. Sidharth Chauhan and Mr. Randhir Singh Chauhan. Mr. Sidharth Chauhan had been into consolidation and aggregation of land for more than 15 years for companies like Adani Group, DLF, NYK Logistics, and Panacea Biotech etc. Mr. Randhir Singh is the father of Mr. Sidharth Chauhan and is a graduate with experience of over 45 years. He has served the Indian Army for 15 years and has more than 20 years of experience in banking sector. SIVAKAME TRADING: CRISIL Reaffirms B Rating on INR7cr Loans ----------------------------------------------------------- CRISIL Ratings has reaffirmed its 'CRISIL B/Stable' ratings on the bank facilities of Sivakame Trading Company (STC). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6 CRISIL B/Stable (Reaffirmed) Cash Term Loan 1 CRISIL B/Stable (Reaffirmed) The rating continues to reflect small scale of operations, exposure to competition and below-average financial risk profile. These weaknesses are partially offset by the extensive experience of the partners. Key Rating Drivers & Detailed Description Weaknesses: * Small scale of operations and exposure to competition: Scale of operations is moderate as reflected in revenue of INR20 crore, in fiscal 2021. Revenue had declined in fiscal 2021 on account of COVID induced lock down and its impact on business. The firm also operates in the highly competitive agro-commodities industry, which is marked by numerous organized and unorganized players leading to intense competition. * Below-average financial risk profile: The financial risk profile is below-average, marked by modest networth and total outside liabilities to tangible networth of INR0.65 crore and 16.41 times, as on 31 March 2021. The debt protection metrics are average marked by an interest cover of 1.40 timesin fiscal 2021. Financial risk profile is expected to be at similar levels in near term. Strength: * Extensive experience of partners: The promoter, Mr. Govindaraja Perumal has an experience of more than three decades in the agro-commodities industry. This should continue to benefit STC over the medium term. Liquidity: Stretched Liquidity is stretched. Bank limit utilisation is moderate at around 70 percent for the past twelve months ended March 2021. Cash accrual are expected to be in the range of INR40 to 50 lacs over the medium term against repayment obligation of INR25 lacs per annum. Current ratio is just adequate at 1 time on March 31, 2021. The promoters are likely to extend support in the form of equity and unsecured loans to meet its working capital requirements and repayment obligations. Outlook: Stable CRISIL Ratings believes that STC will maintain its credit profile marked by the promoter's experience in the agro-commodities business. Rating Sensitivity factors Upward factors: * Sustained increase in scale of operations and profitability TOLTNW of less than 5 times Downward factors: * Net cash accrual to repayment of less than 1 time * Large decline in scale of operations and profitability STC is a partnership firm established in 1986 by Mr. Govindaraja Perumal in Virudhunagar. It is an importer of green peas and pulses from countries such as USA, Canada and Ukraine. It is involved in the wholesale of these commodities. SPR BUILDTECH: CARE Keeps B- Debt Rating in Not Cooperating ----------------------------------------------------------- CARE Ratings said the rating for the bank facilities of SPR Buildtech Limited (SBL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 5.50 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 12, 2020, placed the rating(s) of SBL under the 'issuer non-cooperating' category as SBL 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. SBL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 28, 2021, October 8, 2021, October 18, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Established in 2006 by Mr. Sanjeev Saluja and Mr. Sudesh Gupta, SPR Buildtech Limited (SBL) is engaged into development of residential and commercial project in Faridabad, Haryana. SBL had undertaken development of residential project in Sector 82, Tigaon Road, Faridabad, Haryana, viz. 'Imperial Estate' admeasuring 10.256 acre. The company had undertaken the construction work of the said project in three phases. SWASTIK COAL: Ind-Ra Affirms 'D' Long-Term Issuer Rating -------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Swastik Coal Corporation Pvt. Ltd.'s (SCCPL) Long-Term Issuer Rating at 'IND D (ISSUER NOT COOPERATING)'. The issuer did not participate in the rating exercise despite requests and follow-ups by the agency. Thus, the ratings are on the basis of the best available information. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR425 mil. Fund-based working capital facilities (Long- term/Short-term) affirmed with IND D (ISSUER NOT COOPERATING) rating; -- INR3.035 bil. Non-fund-based working capital facilities (Long- term/Short-term) affirmed with IND D (ISSUER NOT COOPERATING) rating; and -- INR290 mil. Proposed bank facilities (Long-term/Short-term) affirmed with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information KEY RATING DRIVERS The affirmation reflects confirmation from SCCPL's lenders that the company is continued to be categorized as a non-performing asset. RATING SENSITIVITIES Positive: Timely debt servicing for at least three consecutive months would lead to a positive rating action. COMPANY PROFILE Indore-based SCCPL, the flagship company of Swastik Group, is engaged in coal import and trading. The company is promoted by Hitesh Bindal and Vishnu Bindal. TAJSHREE CARS: CARE Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Tajshree Cars Private Limited (TCPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 14.85 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 11, 2020, placed the rating(s) of TCPL under the 'issuer non-cooperating' category as TCPL 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. TCPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 27, 2021, October 7, 2021, October 17, 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. TCPL was established in the year 2013. The company is an authorized dealer for the four-wheelers of Honda Cars India Limited (Honda) in Nagpur region. TAJSHREE MOTORS: CARE Keeps C Debt Rating in Not Cooperating ------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Tajshree Motors Private Limited (TMPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 5.00 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 11, 2020, placed the rating(s) of TMPL under the 'issuer non-cooperating' category as TMPL 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. TMPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 27, 2021, October 7, 2021, October 17, 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. TMPL was incorporated in the year 2006. The company is an authorized dealer for the two wheelers of Yamaha Motors Private Limited (Yamaha) and Chevrolet Sales India Private Limited). TECHNO DRUGS: CARE Lowers Rating on INR6.85cr LT Loan to B- ----------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Techno Drugs and Intermediates Private Limited (TDIPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.85 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category and Revised from CARE B; Stable Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated October 30, 2020, placed the rating(s) of TDIPL under the 'issuer non-cooperating' category as TDIPL 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. TDIPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 15, 2021, September 25, 2021, October 5, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. Established in March 1992, Techno Drugs & Intermediates Private Limited (TDIPL) as a private limited company and is engaged in manufacturing of intermediates and bulk drugs. The promoters of the company are Dr. Vipin Chandra Gandhi and Mr. Sameer Gandhi. TDIPL's manufacturing unit admeasuring 17000 sq. feet is situated in GIDC Panoli, Ankleshwar, District Bharuch, Gujarat and employs around 50 workers. The company has installed capacity to manufacture intermediates and bulk drugs around 15 tons per annum. Its product profile includes Meloxicam, Sibutramine, Sodium Picosulphate, Alendronate Sodium, Chlrobutanol, Bisacodyl, Cetyl Pyridine Chloride, Ibuprofen, Sodium Formadihide Sulperoxine etc. The company is equipped with Research & Development facility along with Effluent Treatment Plant. The company's earns its revenue by exporting its products to Germany, Hong Kong, Brazil, Colombia, Spain, Uruguay, Vietnam, Thailand, Slovenia, Cambodia etc. TRIJAL ENTERPRISE: Ind-Ra Moves 'BB-' Rating to Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Trijal Enterprise Private Limited's Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR219.40 mil. Fund-based working capital limit migrated to non-cooperating category with IND BB- (ISSUER NOT COOPERATING) rating; -- INR280 mil. Non-fund-based working capital limit migrated to non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR50.6 mil. Term loan due on February 2035 migrated to non- cooperating category with IND BB- (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on September 8, 2020. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Trijal Enterprise manufactures gold and silver jewelry in Odisha. The business was initially started as a partnership in the name of M/s Trijal Enterprise and the same was converted to a private limited company effective April 1, 2017. The company is managed by Rajesh Polaki, Tirumala Polaki and Chetan Patra. UDAIPUR BEVERAGES: Ind-Ra Withdraws 'BB' Long-Term Issuer Rating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn Udaipur Beverages Limited's Long-Term Issuer Rating of 'IND BB (ISSUER NOT COOPERATING)'. The instrument-wise rating actions are: -- The 'IND BB' rating on the INR45 mil. Fund-based limit is withdrawn; -- The 'IND BB' rating on the INR45 mil. Non-fund-based limit is withdrawn; and -- The 'IND BB' rating on the INR30 mil. Term loan is withdrawn. KEY RATING DRIVERS Ind-Ra is no longer required to maintain the ratings, as the agency has received a no-dues certificate from the lender. This is consistent with the Securities and Exchange Board of India's circular dated March 31, 2017 for credit rating agencies. Ind-Ra will no longer provide analytical and rating coverage for the entity. COMPANY PROFILE Udaipur Beverages was incorporated in 1996. It has bottling and distribution franchisee rights for Coca Cola India's soft drinks for the Madhya Pradesh region. Its unit is located in Jabalpur with an installed capacity of refilling 400 bottles per minute with soft drinks, manufacturing 180 pet bottles and manufacturing 600 Maaza bottles. UNIVERSAL TRADERS: CARE Keeps B- Debt Rating in Not Cooperating --------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Universal Traders (UT) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 10.00 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category Short Term Bank 1.50 CARE A4; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 5, 2020, placed the rating(s) of UT under the 'issuer non-cooperating' category as UT 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. UT continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 21, 2021, October 1, 2021, October 11, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Uttar Pradesh-based, Universal Traders was incorporated in April 2019. The firm is currently being managed by Mr. Vishnu Kumar Saraswat, Mr. Abhishek Gautam (S/O Mrs. Lata Devi) and Mr. Punit Kumar. Firm is involved in authorized wholesale of foreign liquor and beer. Firm purchases liquor from different liquor companies by placing its order through Central Excise Portal and receives the stock in span of 3 to 4 days. The firm can only sell liquor to authorized liquor retailers and Bars (post inspecting their respective licenses). UNNATI FORTUNE: CARE Keeps D Debt Rating in Not Cooperating ----------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Unnati Fortune Hotmart Private Limited (UFH) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long 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 November 2, 2020, placed the rating(s) of UFH under the 'issuer non-cooperating' category as UFH 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. UFH continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 18, 2021, September 28, 2021 and October 8, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Ghaziabad (Uttar Pradesh) based Unnati Fortune Hotmart Pvt Ltd (UFH), a private limited company was incorporated by Mr. Anil Mithas and Mrs. Madhu Mithas in June 2011 and is part of Unnati Fortune group. The group consists of 25 companies however, only few of them are operational. UFH is setting up a four star hotel in Vaishali near Ghaziabad (Uttar Pradesh). The proposed hotel is being developed on a land parcel of 3,902 sq. mtrs. The proposed hotel consists of 30 rooms, convention centre, fitness centre, restaurant, banquet and other facilities (which include pool, Terrace Garden and Meditation room). Apart from the mentioned facilities the company is also constructing anchor shop (12,002 sqft) and retail shop (15,003 sqft). Initially the hotel was expected to start by July, 2016 but due to delays in disbursement of loan the construction activity was delayed. The hotel will be operational by May 2017. VRINDAA CRAFTS: CARE Keeps B- Debt Rating in Not Cooperating ------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Vrindaa Crafts Private Limited (VCPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 11.00 CARE B-; 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 14, 2020, placed the rating(s) of VCPL under the 'issuer non-cooperating' category as VCPL 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. VCPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated August 30, 2021, September 9, 2021, September 19, 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). Established in 2013, Vrindaa Crafts Private Limited (VCP) is promoted by Mr Sanjeev Gupta, Mr Rajeev Gupta, Ms Anju Gupta and Ms Neeru Gupta. VCP is engaged in the designing and wholesale trading of gold and diamond jewellery and started its commercial operations in August 2013. The company mainly caters to the Delhi-based wholesale traders and retailers. The gold jewellery supplied by the company is hallmarked by BIS (Bureau of Indian Standards). The company operates through its office located in Karol Bagh, New Delhi and gets its jewellery manufactured on job work basis as per the designs and specifications given by the company. The company has another branch office in C.R. Park, Delhi. ================= I N D O N E S I A ================= LIPPO KARAWACI: Moody's Alters Outlook on B3 CFR to Positive ------------------------------------------------------------ Moody's Investors Service has affirmed the B3 corporate family rating of Lippo Karawaci Tbk (P.T.). At the same time, Moody's has affirmed the B3 backed senior unsecured rating of the bonds issued by Theta Capital Pte. Ltd., a wholly-owned subsidiary of Lippo Karawaci. The bonds are guaranteed by Lippo Karawaci and some of its subsidiaries. Moody's has also changed the outlook on all ratings to positive from stable. "The rating affirmation with a change in outlook to positive reflects our expectation of an improvement in Lippo Karawaci's operating cash flow at the holding company level over the next 12-18 months, mainly driven by strong growth in its core marketing sales, the construction completion of its legacy projects and a reduction in rental payments to First REIT," says Jacintha Poh, a Moody's Senior Vice President. "We expect Lippo Karawaci's net cash flow from its property development business and dividend cash flows from its key operating subsidiaries to be sufficient to meet rental and interest payments at the holding company level over the next 12-18 months, such that it does not need to rely on one-off asset sales," adds Poh. RATINGS RATIONALE Lippo Karawaci's marketing sales were IDR4.4 trillion in the first 10 months of 2021 (10M 2021), comprising IDR3.2 trillion of sales at the holding company level. This marketing sales achievement has exceeded Moody's initial estimate of around IDR3.5 trillion; hence, Moody's now estimates Lippo Karawaci's 2021 marketing sales to be around IDR4.7 trillion. Given most of Lippo Karawaci's projects are focused on the mass-market residential segment, which Moody's expects demand from homebuyer to remain strong, the company's 2022 marketing sales will increase to around IDR5.2 trillion. Around 75% of Lippo Karawaci's marketing sales in 10M 2021 are from projects held at the holding company level, and Moody's expects the same proportion in 2021 and 2022. The rise in marketing sales will lead to growth in cash flow from the company's property development business, such that the company does not need to rely on one-off asset sales. Lippo Karawaci's liquidity at the holding company level will be good over the next 12-18 months. As of September 30, 2021, Lippo Karawaci had cash and cash equivalents of around IDR2.3 trillion at the holding company level and Moody's expects it will generate positive operating cash flow of around IDR100 billion in 2022. Lippo Karawaci will also have sufficient cash to repay its short-term loan facilities, although the company will likely continue to roll over the loans and keep a larger cash buffer. The positive operating cash flow in 2022 is supported by stronger cash collection given the growth in marketing sales and lower construction spending following the completion of its legacy projects; higher dividend cash flows because Lippo Karawaci's key operating subsidiaries, 55%-owned Siloam International Hospitals Tbk (P.T.) and 84%-owned Lippo Cikarang (P.T.), have started to pay dividends; and a reduction in rental payments to First REIT. In terms of environmental, social and governance (ESG) risks, Moody's has considered Lippo Karawaci's weak execution track record, which resulted in liquidity pressure that was relieved by an IDR11.2 trillion rights issue backed by the Riady family in 2019. The current management team, led by John Riady, was put in place following the rights issue. Over the past two years, this management team met all the milestones it set in 2019, but the track record remains short. Moody's has also considered the founding family's concentrated ownership of Lippo Karawaci. However, this risk is mitigated by the oversight exercised through the presence of strategic minority shareholders on the board and partially balanced by demonstration of support from its key shareholder. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Lippo Karawaci's rating could be upgraded if the company continues to improve its core property development business, such that operating cash flow at the holding company level is positive without relying on any one-off asset sales; the company reduces debt at the holding company level; and liquidity stays good over the next 12-18 months. Lippo Karawaci's rating could be downgraded if operating cash flow deteriorates at the holding company level, weakening liquidity; and if there are signs of cash leakage from Lippo Karawaci to affiliated companies, for example, through intercompany loans, aggressive cash dividends or investments in affiliates. The senior unsecured bond rating could also be downgraded if debt is incurred at its subsidiaries. The principal methodology used in these ratings was Homebuilding And Property Development Industry published in January 2018. Lippo Karawaci Tbk (P.T.) and its subsidiaries are engaged in the development, management and operation of retail malls, hospitals, hotels, condominiums, and residential townships across multiple cities in Indonesia. Lippo Karawaci also manages Lippo Malls Indonesia Retail Trust (B1 negative), a real estate investment trust (REIT) listed on the Singapore Stock Exchange, in which it owned a 58% stake as of September 30, 2021. ========= J A P A N ========= TOSHIBA CORP: Shareholder Objects to Break-up Plan -------------------------------------------------- Reuters reports that Toshiba Corp's second-largest shareholder on Nov. 24 objected to the Japanese conglomerate's plan to split itself into 3 companies and called on it to instead solicit offers from potential buyers. Reuters relates that hedge fund 3D Investment Partners, which owns more than 7 per cent of Toshiba, laid out its objections in a 3-page letter to the company's board, becoming the first major shareholder to formally oppose the break-up plan outlined this month. The letter, seen by Reuters, highlights shareholder discomfort over Toshiba's proposal - an unease reflected in the company's recent weak stock performance - and raises the possibility that the break-up may struggle to win approval at a shareholder meeting early next year. The proposed break-up is "extremely unlikely" to resolve any of Toshiba's current problems and "is instead very likely to create 3 underperforming companies in the image of today's Toshiba", Singapore-based 3D said in the letter, Reuters relays. Some other hedge fund shareholders have also told Reuters, on condition of anonymity, that they were disappointed Toshiba had turned down the idea of going private. In its letter, 3D said Toshiba should "open a formal process, develop a compelling plan for each of the businesses, provide detailed diligence materials and management meetings to interested financial and strategic parties, encourage and enable stretch proposals from those parties and evaluate the best path forward." According to Reuters, Toshiba launched its strategic review after pressure from investors following a governance scandal over management's alleged collusion with Japan's trade ministry to pressure foreign shareholders. During the 5-month review, Toshiba's review committee held talks with 6 private equity firms, which sources said included KKR & Co and Brookfield, seeking strategic ideas including going private, Reuters relates. While the review committee never conducted an auction process with due diligence for a possible sale, it has said talks with private equity firms suggested potential offers were "not compelling relative to market expectations". Reuters relates that the review committee, which consists of 5 external board directors, has said it did not receive any bona fide proposals to take the company private. The idea of going private, it has said, raised concerns inside Toshiba. However, in its letter - which was also addressed to the review committee - 3D criticised the committee for what it said was a failure to ask for proposals for the sale of Toshiba, or the partial disposition of some of its businesses. "Overly reliant upon an intransigent management team's uninspired projection model and dubious claims of regulatory, employee morale and customer concerns about a different ownership structure, the (committee) appears to have compromised its review and relented," the fund said. 3D, founded by former Goldman Sachs banker Kanya Hasegawa in 2015, was one of dozens foreign hedge funds that participated in a US$5.4 billion capital injection Toshiba received during a crisis stemming from the bankruptcy of its US nuclear power unit in 2017. Toshiba plans to complete the overhaul by March 2024, the report notes. Founded in 1875, Toshiba plans to house its energy and infrastructure divisions in one company while its hard disk drive and power semiconductor businesses will form the backbone of another. A third will manage Toshiba's stake in flash-memory chip company Kioxia Holdings and other assets. About Toshiba Corp. Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/-- manufactures and markets electrical and electronic products. The Company's products include digital products such as PCs and televisions, NAND flash memories, and system LSIs (large-scale integrated), as well as social infrastructures such as power generators, medical equipment, and home appliances. As reported in the Troubled Company Reporter-Asia Pacific on Nov. 18, 2021, S&P Global Ratings has placed its 'BB+' long-term issuer credit rating on Toshiba Corp. on CreditWatch with negative implications. At the same time, S&P affirmed its 'B' short-term issuer credit and commercial paper program ratings. =============== M A L A Y S I A =============== 1MALAYSIA: COA Junks Najib's Bid to Move Decision on SRC Appeal --------------------------------------------------------------- theedgemarkets.com reports that the Court of Appeal (COA) on Nov. 24 rejected Datuk Seri Najib Razak's application for an adjournment of the date fixed for Dec. 8 for the court to deliver its decision on the former premier's appeal to set aside his conviction and 12 years jail sentence and a MYR210 million fine with regard to the SRC International Sdn Bhd case. Deputy registrar Mohd Khairi Haron in a letter directed all parties to come on that day (Dec. 8), the report says. According to theedgemarkets.com, the Federal Court's registrar office on Nov. 23 issued an announcement that the COA will deliver its decision on Dec. 8. A three-member bench led by Justice Datuk Abdul Karim Abdul Jalil that also comprised the appellate court's judges Datuk Has Zanah Mehat and Datuk Vazeer Alam Mydin Meera heard Najib's appeal for 15 days before adjourning on May 18 to decide on the appeal, theedgemarkets.com relates. Later on Nov. 23, Najib's solicitors Shafee & Co wrote in to apply for an adjournment, stating that the Pekan Member of Parliament is scheduled to return from Singapore on Dec. 6 and face a seven-day quarantine. Furthermore, his lead counsel Tan Sri Muhammad Shafee Abdullah is also facing his MYR9.5 million money laundering and income tax trial in the Kuala Lumpur Hgh Court before Justice Datuk Muhammad Jamil Hussin on the same day. Hence, the defence team suggested that the COA deliver its decision between Dec. 13 and Dec. 17. According to the report, Shafee sent letters to Justice Abdul Karim, Justice Jamil and presiding judge Justice Datuk Collin Lawrence Sequerah who had scheduled the 1Malaysia Development Bhd (1MDB)-Tanore trial for dates between Dec 13 and 17. On July 28 last year, Justice Mohd Nazlan Mohd Ghazali found Najib guilty of all seven counts of charges in relation to SRC. theedgemarkets.com says the former Umno president, who was also the finance minister at that time, was charged with abusing his power with regard to approving the MYR4 billion Retirement Fund (Incorporated) (KWAP) loans for SRC in 2011 and 2012, and also three counts each of criminal breach of trust and money laundering of MYR42 million of the company's funds. He allegedly received a total of MYR42 million in three tranches of MYR27 million, MYR5 million and MYR10 million between Dec 26, 2014 and Feb 10, 2015. For this, Justice Nazlan sentenced him to 12 years' jail and fined him MYR210 million or in default another five years jail if the fine is unpaid, the report discloses. Najib, who was the highest-level political executive in the country to be convicted, managed to obtain a stay of the sentence and fine, but the court ordered him to produce a higher bail of MYR2 million, according to the report. A judgment in the SRC case is seen pivotal to the 68-year-old politician's career as if Najib succeeds in overturning this conviction, he will be able to contest in the next general election, where he would likely stand in Pekan, where he has contested and won since 1976 after succeeding his late father, Tun Abdul Razak Hussein, in the Pahang-based parliamentary seat, the report notes. If the conviction is upheld, he will be out of the running - at least pending his next appeal - as an elected representative as under Article 48(1)(e) of the Federal Constitution, he would be disqualified for being convicted of an offence by a court of law and sentenced to imprisonment for a term of at least one year or a fine of at least MYR2,000, and for not receiving a free pardon, the report adds. About 1MDB Kuala Lumpur-based 1Malaysia Development Bhd (1MDB) is an insolvent Malaysian strategic development company, wholly owned by the Malaysian Minister of Finance. 1MDB was established in 2009 to foster long-term economic development for the country by forging global partnerships, particularly in energy, real estate, tourism, and agribusiness. The Company was founded shortly after Dato Sri Najib Razak became Prime Minister of Malaysia in July 2009. Najib said the establishment of 1MDB into a federal entity was to benefit a majority of Malaysians. 1MDB is said to have raised billions of dollars in bonds, for investment projects and joint ventures, between 2009 and 2013. Among those projects are the Tun Razak Exchange, Tun Razak Exchange's sister project Bandar Malaysia, and the acquisition of three independent power producers. The Company came into heavy scrutiny in 2015 for suspicious money transactions and evidence pointing to money laundering, fraud and theft. The corruption scandal in 1MDB has implicated high-level officials, including Prime Minister Najib Razak, as wells as banks and financial institutions around the world. In 2016, the U.S. Department of Justice filed a lawsuit, alleging that at least US$3.5 billion has been stolen from 1MDB. In September 2020, the alleged amount stolen had been raised to US$4.5 billion and a Malaysian government report listed 1MDB's outstanding debts to be US$7.8 billion. Malaysia has been filing lawsuits over the years in an effort to recover the missing billions of dollars. Among others, in May 2021, Malaysia filed 22 civil suits against entities and people involved in the corruption scandal, including units of Deutsche Bank and JP Morgan. Malaysia said in September 2020 it has so far recovered about $3.24 billion in assets linked to the 1MDB matter. This amount includes about US$600 million cash and assets returned by U.S. authorities; about $2.5 billion paid by Goldman Sachs as settlement; as well as $780 million in settlement amounts from Malaysian banking group AmBank and audit firm Deloitte. ===================== N E W Z E A L A N D ===================== COLLECTIVE CONSTRUCTION: Leen Promises to Repay Creditors NZD260K ----------------------------------------------------------------- Anne Gibson at The New Zealand Herald reports that a builder on The Block NZ television series has promised to repay creditors of a company that went under nearly half a decade ago. Dan Leen, whose new business is Southern Collective, and wife Meg Stallard featured on the Three series with the Pt Chevalier townhouses. But now Mr. Leen said he will use some of his winnings from the television series to partly pay out people who lost money when a building company he was involved in went under. Last decade, Mr. Leen was one of two directors of building business Collective Construction which he and another put into liquidation. When it failed, it had 33 unsecured creditors who claimed more than half a million dollars. According to the Herald, Waterstone Insolvency said the directors, including Mr. Leen, put the company into liquidation in February, 2017, because it couldn't survive financially. The business had been registered in 2014 and directors were Glenn James Edwards of Christchurch and Daniel Heward Leen of Lincoln. Shareholders were Mr. Edwards, Mr. Leen and Mark Stuart Tutty of St Albans. A partial distribution to a secured creditor was made of NZD90,000, the Herald discloses. "The business specialised in commercial construction, fitouts and restoration. The liquidators' initial investigations indicate that the company was unable to pay its debts as they fell due," Waterstone's liquidators Damien Grant, Steven Khov and Brenton Hunt said, the report relays. The company had debts of around NZD650,000 but unsecured creditors owned NZD526,000 got nothing. On the Three series The Block NZ, Mr. Leen and Ms. Stallard got NZD478,000 after their place was auctioned, the Herald discloses. Mr. Leen told the Herald: "Following the success of the auction and after an in-depth discussion with Meg, I have made the decision to pay my share of the outstanding creditors who were not paid through the liquidation process of Collective Construction. Further to this, I wish to again extend my apologies to all those affected by the liquidation process." Half of the money that was not paid to creditors at the time of liquidation will be paid by Mr. Leen. "There were two liable directors of the company, myself being one of them. That amount is approximately NZD260,000. I am not legally obliged to make these payments but I want to," the report quotes Mr. Leen as saying. He complained about publicity on Stuff. "Since the story was published, the ambiguity around Meg's involvement has been incredibly hard for us, so it is very important to me to clear Meg's name from this story. She was categorically not involved in Collective Construction in any way. I met Meg six months prior to the business going into voluntary liquidation. I was effectively unemployed and Meg separately decided to start her own small business, using her own money, and employed me. The company has now grown into a team of six people and is successful," Mr. Leen, as cited by the Herald, explained. He said he also wanted to address the purchase of the family home in 2018. "Using money from the sale of Meg's previous home, we were able to purchase our dream property for considerably less than its current valuation. It was purchased in Meg's name for lending purposes only due to myself being unable to take on lending as a side effect of the liquidation. Meg and I married the following year in 2019," Mr. Leen said. He expressed regret about the company failure last decade, the report relays. "I was financially devastated by the liquidation and have tried to get back on with life and be a good corporate citizen, but the last two weeks have been extremely difficult and it has caused a great deal of stress to ourselves and our family. So if you would like to do a story, then getting some clarity around Meg's involvement and our house purchase would mean a great deal to us," he said. Brenton Hunt from Insolvency Matters was one of the liquidators who had offered to assist with the process for no fee. "If creditors want to contact him he can arrange the paperwork for the payment," he said on Nov. 17. Mr. Hunt said: "Creditors already started to contact me. Doing this for NZD0 as bit worried about Daniel." The Herald sought comment from Discovery about Mr. Leen, the report on his promise to make a partial repayment and his troubled former business. "It's not really to do with us. It's Dan's situation. You can talk to Dan about it," the Herald quotes a Discovery spokesperson as saying. J AND K PERFORMANCE: Court to Hear Wind-Up Petition on Dec. 7 ------------------------------------------------------------- A petition to wind up the operations of J and K Performance Limited will be heard before the High Court at Wellington on Dec. 7, 2021, at 10:00 a.m. The Commissioner of Inland Revenue filed the petition against the company on July 5, 2021. The Petitioner's solicitor is: Julia Snelson Legal Services 11 Jepsen Grove Wallaceville, Upper Hutt 5018 PO Box 1462, Wellington 6140 New Zealand ORMISTON RISE: Court to Hear Wind-Up Petition on Dec. 3 ------------------------------------------------------- A petition to wind up the operations of Ormiston Rise Development Limited will be heard before the High Court at Auckland on Dec. 3, 2021, at 10:00 a.m. Platform Homes Limited filed the petition against the company on Sept. 15, 2021. The Petitioner's solicitors are: Duncan Cotterill Level 2, Duncan Cotterill Plaza 148 Victoria Street Christchurch 8013 New Zealand ZHERO LIMITED: Creditors' Proofs of Debt Due on Dec. 22 ------------------------------------------------------- Creditors of Zhero Limited, Koru NZ Limited, Korupak NZ Limited, Prachi Indian Cuisine Limited, and Palmerston North Auto Detailers Limited, which are in liquidation, are required to file their proofs of debt by Dec. 22, 2021, to be included in the company's dividend distribution. The company's liquidators are: Greg Sherriff Damien Grant Waterstone Insolvency PO Box 352 Auckland 1140 New Zealand ================= S I N G A P O R E ================= AGV GROUP: Flags Going Concern Uncertainty ------------------------------------------ The Business Times reports that AGV Group warns that the lack of financial support amid Covid-19's impact on its business has resulted in a material uncertainty over its ability to continue as a going concern. This comes amid the termination of its October share placement, and notice from its controlling shareholder who said he would not provide financial support for the company's cash gap in full, BT says. As such, AGV does not intend to lift the trading halt on its shares, which has been in effect since Nov. 19, 2021, and will request a voluntary trading suspension until the issues can be addressed, BT relates. On Nov. 10, the provider of hot dip galvanising services had said that 53% of its production workers at its galvanising plant in Tuas have tested positive for Covid-19. As the number of workers able to work are significantly reduced, AGV expected a material reduction to the production tonnage of its Singapore operations, the report says. Then, AGV had said the probable decline in revenue and net income will likely not affect its ability to continue as a going concern and its ability to fulfil its near-term obligations, as it still had the share placement and it was making arrangements to allow for materials to be galvanised at the group's Malaysia plant instead, BT relates. But placees of AGV's share placement have since requested the termination of the share placement as they were not agreeable to a direct allotment and issue of shares. AGV had proposed the direct placement as its lender did not agree to effect the share lending agreement. Furthermore, the company's controlling shareholder Chua Wei Kee said he would not provide for the company's cash gap up to March 2022, despite his earlier undertaking to provide financial support. According to the report, AGV said its board had reiterated that this would result in AGV becoming insolvent, but Chua said he would only be willing to directly provide less than 25 per cent of the estimated 4-month cash gap, and was firm in the amount of financial support that he is willing and able to provide. BT adds that AGV said it was working with its creditors, suppliers and customers "to endeavour to continue its business operations with minimal disruption while it sorts out this state of affairs". AGV Group Limited provides hot dip galvanizing services. The Company offers its products and services to the steel and iron industries in Singapore. EAGLE HOSPITALITY: Judge Weighs Ch. 11 Relief Money Sanction ------------------------------------------------------------ Vince Sullivan of Law360 reports that the Delaware bankruptcy judge presiding over the Eagle Hospitality Group Chapter 11 case said late Friday, November 19, 2021, that he is weighing whether jail time might be needed to compel two men to give a full accounting of COVID-19 relief money intended for the floating Queen Mary Hotel that they allegedly diverted. During an in-person hearing in Wilmington, U.S. Bankruptcy Judge Christopher S. Sontchi said he had already issued a judgment against Howard Wu and Taylor Woods - executives of debtor affiliate Urban Commons LLC - for their roles in obtaining a $2.4 million loan under the Paycheck Protection Program without proper authority. About Eagle Hospitality Group Eagle Hospitality Trust -- https://eagleht.com/ -- is a hospitality stapled group comprising Eagle Hospitality Real Estate Investment Trust ("Eagle H-REIT") and Eagle Hospitality Business Trust. Based in Singapore, Eagle H-REIT is established with the principal investment strategy of investing on a long-term basis, in a diversified portfolio of income-producing real estate which is used primarily for hospitality and/or hospitality-related purposes, as well as real estate-related assets in connection with the foregoing, with an initial focus on the United States. EHT US1, Inc., and 26 affiliates, including 15 LLC entities that each owns hotels in the U.S., sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 21-10036) on Jan. 18, 2021. EHT US1, Inc., estimated $500 million to $1 billion in assets and liabilities as of the bankruptcy filing. The Debtors tapped Paul Hastings LLP as bankruptcy counsel; FTI Consulting, Inc., as restructuring advisor; and Moelis & Company LLC, as investment banker. Cole Schotz P.C. is the Delaware counsel. Rajah & Tann Singapore LLP is Singapore Law counsel, and Walkers is Cayman Law counsel. Donlin, Recano & Company, Inc. is the claims agent. HYFLUX LTD: Unsecured Creditors Likely to Receive Small Dividend ---------------------------------------------------------------- The Business Times reports that the liquidators for water-treatment company Hyflux Ltd said on Nov. 18 that unsecured creditors, including medium-term noteholders, are likely to receive a "small dividend" following the sale of assets. However, Hyflux shareholders and holders of the perpetual securities and preference shares (P&Ps) are unlikely to recover any part of their investments, the report says. "The P&P claims are subordinated to the claims of ordinary unsecured creditors and are unlikely to be eligible for a dividend," the liquidators said. They said they have received total proofs of debt amounting to around SGD1.5 billion, but the realisations from the asset sales are unlikely to exceed SGD100 million, BT relates. BT says the size and timing of any dividend to unsecured creditors will be assessed after the sale of all assets is completed. However, the liquidators said that it is impossible to know when this will be completed. "It is too early to provide any estimates for the completion of the liquidation," it added. About Hyflux Ltd Singapore-based Hyflux Ltd -- https://www.hyflux.com/ -- provides various solutions in water and energy areas worldwide. The company operates through two segments, Municipal and Industrial. The Municipal segment supplies a range of infrastructure solutions, including water, power, and waste-to-energy to municipalities and governments. The Industrial segment supplies infrastructure solutions for water to industrial customers. It has business operations across Asia, Middle East and Africa. On Nov. 17, 2020, the High Court of Singapore appointed Hamish Alexander Christie and Patrick Bance of Borrelli Walsh Pte. Limited as joint and several judicial managers of Hyflux Ltd. Borrelli Walsh is the financial adviser of an unsecured working group of banks comprising Mizuho, Bangkok Bank, BNP Paribas, CTBC Bank, KfW, Korea Development Bank, and Standard Chartered Bank, according to The Business Times. The group had applied to put the ailing water treatment firm under judicial management, BT said. The High Court of Singapore approved the company's winding up on July 21, 2021. LUX DESIGN: Court to Hear Wind-Up Petition on Dec. 10 ----------------------------------------------------- A petition to wind up the operations of Lux Design Pte Ltd will be heard before the High Court of Singapore on Dec. 10, 2021, at 10:00 a.m. Maybank Singapore Limited filed the petition against the company on Nov. 16, 2021. The Petitioner's solicitors are: Tito Isaac & Co LLP 1 North Bridge Road #30-00 High Street Centre Singapore 179094 SINYAP INTEGRATED: Court to Hear Wind-Up Petition on Dec. 10 ------------------------------------------------------------ A petition to wind up the operations of Sinyap Integrated Pte Ltd will be heard before the High Court of Singapore on Dec. 10, 2021, at 10:00 a.m. Maybank Singapore Limited filed the petition against the company on Nov. 17, 2021. The Petitioner's solicitors are: Tito Isaac & Co LLP 1 North Bridge Road #30-00 High Street Centre Singapore 179094 SMALLWORLD DEVELOPMENTS: Creditors' Proofs of Debt Due on Dec. 23 ----------------------------------------------------------------- Creditors of Smallworld Developments Pte Ltd, which is in voluntary liquidation, are required to file their proofs of debt by Dec. 23, 2021, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Nov. 15, 2021. The company's liquidator is: Ho Lon Gee c/o 80 Robinson Road #02-00 Singapore 068898 ********* 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 ***