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       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

          Tuesday, December 21, 2021, Vol. 24, No. 248

                           Headlines



C H I N A

GUANGZHOU R&F PROPERTIES: S&P Cuts ICR to 'CC', Outlook Negative
GUANGZHOU R&F: Fitch Lowers LT ForeignCurrency IDR to 'C'


I N D I A

AGARWAL STEEL: Ind-Ra Assigns BB- Issuer Rating, Outlook Stable
AMBALIKA SUGAR: Ind-Ra Moves BB+ Issuer Rating to Non-Cooperating
BHAGWAN MAHAVEER: Ind-Ra Corrects October 7, 2021 Rating Release
GURU RAGHAVENDRA: Ind-Ra Moves 'BB+' Rating to Non-Cooperating
K P WOVEN: Ind-Ra Hikes Long-Term Issuer Rating to 'BB+'

KANEL INDUSTRIES: Insolvency Resolution Process Case Summary
MBS SERVICES: Ind-Ra Moves BB+ Issuer Rating to Non-Cooperating
MJM INDUSTRIES: Ind-Ra Withdraws 'B' Long-Term Issuer Rating
PEC LIMITED: Ind-Ra Keeps 'D' LT Issuer Rating in Non-Cooperating
RELCON INFRAPROJECTS: Ind-Ra Moves 'BB+' Rating to Non-Cooperating

SANVI MILK: Insolvency Resolution Process Case Summary
SEJAL PROPERTIES: Ind-Ra Corrects November 25, 2021 Rating Release
SHRIRAM TRANSPORT: S&P Affirms 'BB-' Long-Term ICR, Outlook Stable
VHV BEVERAGES PRIVATE: Insolvency Resolution Process Case Summary
VIJAI CONSTRUCTION: Ind-Ra Lowers Long-Term Issuer Rating to 'BB+'

VIJAYAA STEELS: Insolvency Resolution Process Case Summary

                           - - - - -


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C H I N A
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GUANGZHOU R&F PROPERTIES: S&P Cuts ICR to 'CC', Outlook Negative
----------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
Guangzhou R&F Properties Co. Ltd. and its subsidiary R&F Properties
(HK) Co. Ltd. (R&F HK) to 'CC' from 'B-'.

S&P said, "The negative outlook on Guangzhou R&F reflects our view
that the company is highly vulnerable to default on its upcoming
obligation, while the negative outlook on R&F HK reflects the
likelihood that we would lower the rating to 'SD' when the proposed
transaction is completed.

"We lowered the rating on Guangzhou R&F because we view the
proposed transaction as a distressed restructuring, given the
company is seeking the tender at a discount and extend the
maturity. In addition, we believe the company is vulnerable to
nonpayment on its U.S. dollar-denominated senior notes upon
maturity in January in the absence of the proposed restructuring."

Contrary to S&P's previous expectation, it believes Guangzhou R&F
does not currently have the offshore funds fully ready yet for the
imminent bond maturity and has less than one month left to prepare
funds for repayment. Although it has plans to raise more funds to
meet the repayment, the plans have varying visibility. Raising
sufficient funds is subject to a very tight timeline and execution
risks. The risk of conventional default is escalated if the
fund-raising plans won't sufficiently materialize and investors
reject the proposed transaction.

Under option A of the tender offer, bondholders will receive cash
of US$830 with accrued interest for each US$1,000 principal amount
validly tendered. Under option B, Guangzhou R&F will repay 50% of
the tendered amount in cash at par with accrued interest, and the
maturities on the remaining 50% extended. All tendered notes will
be deemed to vote in favor of the maturity extension to July 13,
2022.

S&P will review Guangzhou R&F's credit profile after the
transaction is completed. The exchange offer will likely be settled
on Jan. 10, 2022. The company still faces sizable onshore bonds
maturities and puttable of about Chinese renminbi (RMB) 9.5 billion
as well as offshore maturities of US$648 million in the rest of
2022, besides the US$725 million due in January. Even upon
successful completion of the proposed transaction, its resources
and liquidity position will likely be further reduced, making the
maturities thereafter vulnerable to nonpayment risks.

With capital market remaining largely closed to weaker Chinese
developers for refinancing, the company will need to continue to
rely on further asset disposals or other pledged borrowings to
generate sufficient resources for repayment needs, other than a
portion of its sales proceeds that can be truly mobilized.
Therefore, S&P believes Guangzhou R&F still faces a lot of
challenges to substantially improve its weak liquidity, and the
repayment for its July and December U.S. dollar-denominated senior
notes is highly uncertain.

Guangzhou R&F's November sales declined by about 45% from a year
ago and will likely remain weak over the next six to 12 months.
With only about RMB112 billion total contracted sale achieved in
the first 11 months, Guangzhou R&F's sales deterioration for 2021
is likely to exceed our original expectation of a 13%-15% drop, and
may decline by 20% or more. How much sales proceeds or cash at
project level a Chinese developer can upstream to the holding
company these days is also a question. Indeed, S&P has some cases
where financial institutions or joint venture partners have
requested developers not to upstream the cash as a means to protect
their interests and the viability of the projects. That is
especially true for developers under liquidity stress. Hence,
Guangzhou R&F's capacity to make repayments with internal resources
will likely be constrained.

S&P said, "The negative outlook on Guangzhou R&F reflects our view
that the company is highly vulnerable to default on its outstanding
obligations. The negative outlook on R&F HK reflects the likelihood
that we will lower our issuer credit rating to 'SD' (selective
default) when the distressed restructuring is completed.

"Following the conclusion of the transaction, we will reassess
Guangzhou R&F's and R&F HK's financial and liquidity position,
based on the amount tendered. The reassessment will also include
Guangzhou R&F's parent support to R&F HK."


GUANGZHOU R&F: Fitch Lowers LT ForeignCurrency IDR to 'C'
---------------------------------------------------------
Fitch Ratings has downgraded the Long-Term Foreign-Currency Issuer
Default Ratings (IDR) of China-based homebuilder, Guangzhou R&F
Properties Co. Ltd., and its subsidiary, R&F Properties (HK)
Company Limited (RFHK), to 'C' from 'B-'. The senior unsecured
ratings on the two companies have also been downgraded to 'C' from
'B-', and the Recovery Ratings remain at 'RR4'. The ratings have
been removed from Rating Watch Negative (RWN).

The downgrades follow Guangzhou R&F's announcement that it has
launched a tender offer and consent solicitation to either reduce
the price payable on the principal of its USD725 million senior
notes due 13 January 2022 or extend the maturity of the notes.
Investors have the option to be immediately paid USD830 plus
accrued interest per USD1,000 of principal amount of the notes.
Alternatively, only 50% of the principal payment will be repaid on
the due date and the remaining 50% will be extended by six months
to 13 July 2022.

The company is also seeking to shorten the notice period of
optional redemption of the bond at 100% of the principal amount to
seven business days.

Fitch considers the extension of the bond maturity by six months
with delayed 50% principal repayment and/or the reduction of the
price payable as a distressed debt exchange (DDE) as per its
criteria. If the proposed tender offer and consent solicitation is
successfully completed, the IDR will be downgraded to 'RD'
(Restricted Default). Fitch will then reassess Guangzhou R&F's
credit profile to determine an IDR consistent with the company's
post-consent solicitation capital structure and risk profile, which
would likely be within a very low speculative-grade range.

KEY RATING DRIVERS

Tender Offer Constitutes a DDE: The tender offer and consent
solicitation, if successful, will constitute a DDE under Fitch's
criteria. When considering whether the consent solicitation should
be classified as a DDE, Fitch expects both of the following to
apply: the consent solicitation imposes a material reduction in
terms compared with the original contractual terms; and the consent
solicitation is conducted to avoid bankruptcy, similar insolvency
or intervention proceedings, or a traditional payment default.

Consent Solicitation to Avoid Default: Fitch considers the consent
solicitation to be necessary for Guangzhou R&F to avoid default
given limited liquidity. The company had available cash balance of
around CNY13 billion at end-June 2021, but its ability to access
the cash for bond repayment is uncertain. The tender offer and
consent solicitation also state that the company may not be able to
fully redeem the notes upon maturity on 13 January 2022 if the
offer is not successfully consummated.

Material Reduction in Terms: Fitch believes the tender offer and
consent solicitation constitute a material reduction in the terms
of the existing notes as there is a reduction of price payable per
USD1,000 principal amount of the notes accepted for immediate
purchase to USD830, while 50% of the principal repayment will be
delayed for six months under the second option. There is no
reduction in the interest for the bond in the proposed tender offer
and consent solicitation.

Conditions of Tender Offer: The company's obligation to consummate
the consent solicitation is conditional upon the bondholders
tendering not less than 75% in aggregate principal of the
outstanding amount of the existing notes. The company reserves the
right to amend, modify or waive, at any time, the terms and
conditions of the consent solicitation.

Subsidiary's Rating Equalised with Parent: RFHK is Guangzhou R&F's
sole offshore financing and investment platform. Its ratings are
equalised with those of its parent based on Fitch's assessment of
their linkages under Fitch's Parent and Subsidiary Linkage Rating
Criteria.

DERIVATION SUMMARY

Guangzhou R&F's ratings reflect its tender offer and consent
solicitation and the proposed amendments to extend the maturity of
the notes due on 13 January 2022 or reduce the price payable per
USD 1,000 principal.

KEY ASSUMPTIONS

-- 4x EBITDA multiple to derive Guangzhou R&F's going-concern
    value;

-- Fitch applies a liquidation value approach, as asset
    liquidation results in a higher return to creditors.

Liquidation Approach

-- 10% administration claims;

-- 70% advance rate to accounts receivables;

-- 65% advance rate to adjusted net inventory to reflect our
    expectation of decrease in its EBITDA margin;

-- 54% advance rate to Guangzhou R&F's investment properties;

-- 60% advance rate to net property, plant and equipment;

-- 100% advance rate to restricted cash.

The resulting recovery corresponds to a Recovery Rating of 'RR2'
for Guangzhou R&F. However, the Recovery Rating is capped at 'RR4'
because, under Fitch's Country-Specific Treatment of Recovery
Ratings Criteria, China falls into Group D of creditor
friendliness, and instrument ratings of issuers with assets in the
group are subject to a soft cap at the issuer's IDR and a Recovery
Rating of 'RR4'.

RATING SENSITIVITIES

Guangzhou R&F:

Factor that could, individually or collectively, lead to positive
rating action/upgrade:

-- Fitch will reassess Guangzhou R&F's capital structure and cash
    flow after the completion of the consent solicitation and
    tender offer to determine its IDR and senior unsecured
    ratings. Fitch will do the same if the transaction is not
    completed.

Factor that could, individually or collectively, lead to negative
rating action/downgrade:

-- Fitch will downgrade Guangzhou R&F's IDR to 'RD' if the
    consent solicitation is completed, or if it fails to meet any
    of its debt obligations.

For RFHK:

Factor that could, individually or collectively, lead to positive
rating action/upgrade:

-- Upgrade of Guangzhou R&F's IDR.

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

-- A downgrade of Guangzhou R&F's IDR;

-- Weakened linkages with Guangzhou R&F.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.

ISSUER PROFILE

Founded in 1994, Guangzhou R&F is a property developer focusing on
medium- and high-end property development. The company also engages
in hotel development, commercial operations, property management
and architectural and engineering design.

SUMMARY OF FINANCIAL ADJUSTMENTS

Fitch's calculation of net property assets at end-2020 includes
property development inventory, investment property at cost, hotel
properties and joint venture investments. Customer deposits as well
as amounts due to non-controlling interests, joint ventures and
associates are deducted from the summation of items mentioned
previously.

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.



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AGARWAL STEEL: Ind-Ra Assigns BB- Issuer Rating, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Agarwal Steel
Private Limited (ASPL) a Long-Term Issuer Rating of 'IND BB-'. The
Outlook is Stable.

The instrument-wise rating actions are:

-- INR100 mil. Fund-based working capital limits assigned with
     IND BB-/Stable/IND A4+ rating; and

-- INR33.107 mil. Term loan due on July 2025 assigned with IND
     BB-/Stable rating.

The ratings reflect ASPL's small scale of operations, modest EBITDA
margin and weak credit metrics.

KEY RATING DRIVERS

The ratings reflect ASPL's small scale of operations as indicated
by revenue of INR734.89 million in FY21 (FY20: INR587.22 million),
due to increase in sales volume on account of increase in demand.
As of October 2021, the firm recorded  revenue of INR735.85
million. Ind-Ra expects the revenue to increase further in FY22,
owing to continuous order inflow and timely execution of orders.
FY21 financials are provisional in nature.

The ratings also factor in the ASPL's modest EBITDA margin of 4.74%
in FY21 (FY20: 3.90%) with a return on capital employed of 8.8%
(FY20: 8.4%). In FY21, the EBITDA margin improved due to decline in
the raw material prices. In FY22, Ind-Ra expects the EBITDA margin
to remain at similar levels due to risk of raw material price
fluctuation.

The ratings are also constrained by ASPL's weak credit metrics with
the interest coverage (operating EBITDA/gross interest expense) of
1.76x in FY21 (FY20: 1.41x) and the net financial leverage
(adjusted net debt/operating EBITDAR) of 7.20x (9.76x). The
improvement  was primarily on account of an increase in the
absolute EBITDA. The agency expects the firm's credit metrics to
improve marginally in FY22, owing to repayment of a term debt.

Liquidity Indicator - Poor:  ASPL  fully utilized its fund-based
limits during the 12 months ended October 2021 with few instances
of overutilization of up to five days. ASPL's net working capital
cycle improved marginally to 110 days in FY21 (FY20: 115 days),
mainly on account of an increase in the payable period to 13 days
(7 days). The cash flow from operations turned negative to INR22.07
million in FY21 (FY20: INR21.16 million) due to unfavorable changes
in working capital. The cash and cash equivalents stood at INR0.80
million at FYE21 (FYE20: INR1.43 million). Furthermore, ASPL did
avail the Reserve Bank of India-prescribed moratorium on the
principal repayment of term loan during March to August 2020. It
also availed a guaranteed emergency credit line facility of INR25
million to meet its working capital requirements.

However, the ratings are supported by the promoters' nearly more
than a decade of experience in the iron and steel trading
business.

RATING SENSITIVITIES

Positive: An increase in the scale of operations and liquidity,
along with an improvement in the credit metrics with the interest
coverage increasing above 1.8x, on a sustained basis, could lead to
a positive rating action.

Negative: A significant decline in scale of operations leading to
deterioration in the credit metrics or a further deterioration in
the liquidity position, all on a sustained basis could lead to a
negative rating action.

COMPANY PROFILE

Founded in 1973 as a small trading firm, ASPL manufactures
thermo-mechanically treated bars, slit coil, metal sheet, among
others. It has an installed capacity of 31,500 metric tons. The
company has its registered office in Kolkata, West Bengal and the
plant is located in Hooghly district. The company caters to the
domestic market only.


AMBALIKA SUGAR: Ind-Ra Moves BB+ Issuer Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Shri Ambalika
Sugar 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:       

-- INR1.150 bil. Term loans due on March 2026 migrated to non-
     cooperating category with IND BB+ (ISSUER NOT COOPERATING)
     rating; and

-- INR4.350 bil. Fund-based limits migrated to non-cooperating
     category with IND BB+ (ISSUER NOT COOPERATING)/IND A4+
     (ISSUER NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
November 10, 2020. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Shri Ambalika Sugar has an integrated facility to manufacture sugar
at 7,500 tons of cane per day, generate power at 38MW capacity and
produce ethanol at 12,000 liters per day. It is located in
Ahmednagar, Maharashtra. The promoters are Dilip Kadam and Jangal
Wagh.  


BHAGWAN MAHAVEER: Ind-Ra Corrects October 7, 2021 Rating Release
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) rectified Bhagwan Mahaveer
Memorial Jain Trust's (BMMJT) rating release published on October
7, 2021 to include details of sub-limits of the fund-based working
capital facilities.

The amended version is:

India Ratings and Research (Ind-Ra) has upgraded Bhagwan Mahaveer
Memorial Jain Trust's (BMMJT) bank facilities to 'IND BB' from 'IND
B+'. The Outlook is Stable.

The detailed rating actions are:

-- INR300.00 mil. (increased from INR219.80 mil.) Bank loans
     upgraded with IND BB/Stable rating;

-- INR100.00 mil. (reduced from INR137.70 mil.) Fund-based
     working capital facilities* upgraded with IND BB/Stable
     rating; and

-- INR5.00 mil. Non-fund-based working capital facilities
     upgraded with IND A4+ rating.

*includes sub-limit of letter of credit/bank guarantee of INR20
million

The upgrade reflects an improvement in BMMJT's coverage ratios and
debt burden during FY20-FY21. Ind-Ra expects it to improve further
in FY22 on account of an improvement in operating performance. The
upgrade also reflects a likely growth in the operating margin and
liquidity position in FY22 on account of pre-closure of bank
facilities with Punjab National Bank ('IND AAA'/Stable).

KEY RATING DRIVERS

The ratings reflect an improvement in BMMJT's debt burden and
coverage ratios. In FY21, the trust's debt/current balance before
interest and depreciation (CBBID) reduced to 4.42x (FY20: 5.69x)
and debt/income reduced to 49.00% (58.16%), owing to a 16% yoy fall
in the total debt to INR782.08 million and an 8.17% yoy increase in
CBBID to INR176.88 million. The interest service coverage ratio
(CBBID/interest expenses) improved to 2.03x in FY21 (FY20: 1.43x)
on account of the improvement in CBBID. The debt service coverage
ratio (DSCR) improved to 0.73x in FY21 (FY20: 0.59x), although
remained weak. BMMJT serviced its debt over FY17-FY21 through
unsecured loans and donations provided by the trustees. FY21
numbers are provisional in nature.

The ratings benefit from BMMJT's diversified revenue profile and
moderate revenue base of INR1,596 million in FY21. The hospital's
income continued to dominate the revenue profile with 77.24%
contribution to the total income in FY21, followed by the sale of
medicine (18.22%). The hospital income grew 13.48% yoy to
INR1,232.78 million and the revenue from the sale of medicine
increased 9.63% yoy to INR290.75 million in FY21.

The ratings are further supported by BMMJT's three decades of
operating experience and strong financial support from the trustees
in the form of unsecured loans (FY21: INR575.50 million, FY20:
INR514.46 million) and donations (FY14-FY21: INR600.68 million).
Ind-Ra expects the support from the trustees to continue, if
required.

The ratings also factor in an improvement in BMMJT's operating
profitability during FY20-FY21. The trust's operating margin
increased to 8.24% in FY20 (FY19: 4.36%), due to a 15.66% yoy
increase in the key operating income, partially offset by a 10.97%
yoy increase in the key operating expenditure. However, it declined
to 7.23% in FY21 owing to a 2.35% yoy fall in the operating income
due to COVID-19 outbreak. In FY21, the trust's CBBID margin
increased to 11.08% in FY21 (FY20: 10.21%). The net deficit reduced
to INR27.78 million in FY21 (FY20: INR74.95 million). Ind-Ra
expects the operating profitability to improve in FY22 on the back
of a likely growth in hospital income.

Liquidity Indicator - Stretched: BMMJT's available funds (cash and
unrestricted investments) were low at INR14.02 million at FYE21
(FYE20: INR14.41 million) and did not adequately cover the total
debt and operating expenditure. The funds available to cover the
total debt and operating expenditure stood at 1.79% and 0.99%,
respectively, in FY21 (FY20: 1.55% and 1.00%, respectively).
BMMJT's collection period remained moderate but increased to 36
days in FY21 (FY20: 30 days), due to delays in collection of
insurance claims on account of the COVID-19 pandemic. The average
utilization of the working capital limits was 53.26% for the 12
months ended August 2021.

BMMJT's debt service commitments amounted to INR242.18 million in
FY21 (15.17% of total income) and it is likely to be around
INR220.10 million in FY22. Ind-Ra expects the trust's cash flows to
provide moderate coverage for its debt servicing obligations in
FY21. The trust did not avail the Reserve Bank of India-prescribed
moratorium facility.

RATING SENSITIVITIES

Positive: Events that may collectively lead to a positive rating
action are:

- the operating margins increasing above 10% on a sustained
basis,

- debt burden (debt/CBBID) reducing below 4x on a sustained basis,
and

- an improvement DSCR above 1.10x on a sustained basis.

Negative: Events that may, individually or collectively, lead to a
negative rating action are:

- a 20% yoy fall in the total income,

- operating margin reducing below 3% on a sustained basis, and

- debt burden (debt/CBBID) increasing above 7.0x on a sustained
basis.

COMPANY PROFILE

Established in 1975 as a public charitable trust in Bengaluru,
Karnataka, BMMJT operates a super speciality hospital in Vasanth
Nagar, Bengaluru. The hospital offers a wide range of speciality
services which include pulmonology, nephrology, gastroenterology,
cardiology, neurology, oncology, vascular surgery and pediatrics,
among others. In 2016, the trust constructed a second hospital with
100-bed capacity in Giri Nagar, Bengaluru.


GURU RAGHAVENDRA: Ind-Ra Moves 'BB+' Rating to Non-Cooperating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Guru Raghavendra
Infrastructures' Long-Term Issuer rating to 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:

-- INR50 mil. Fund-based working capital limit migrated to non-
     cooperating category with IND BB+ (ISSSUER NOT COOPERATING)/
     IND A4+ (ISSUER NOT COOPERATING) rating; and

-- INR300 mil. Non-fund-based working capital limit migrated to
     non-cooperating category with IND A4+ (ISSUER NOT
     COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
October 15, 2020. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

GRI was established to produce gravel using stone crushers and also
supply Ready Mix Concrete.  The firm entered into civil work in
2017 and provides services in irrigation works, hydro power,
construction of bridges and road works on sub-contract basis.


K P WOVEN: Ind-Ra Hikes Long-Term Issuer Rating to 'BB+'
--------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded K P Woven Private
Limited's (KPW) Long-Term Issuer Rating to 'IND BB+' from 'IND BB'.
The Outlook is 'Positive'.

The instrument-wise rating actions are:

-- INR200 mil. Fund-based working capital limit Long-term rating
     upgraded; short-term rating assigned with IND BB+/Positive/
     A4+ rating; and

-- INR158 mil. (reduced from INR180 mil.) Term loan due on March
     2027 upgraded with IND BB+/Positive rating.

The upgrade reflects the substantial increase in KPW's revenue and
the improvement in its working capital cycle in FY21.  

The Positive Outlook reflects Ind-Ra's expectation of a continued
improvement in the revenue in FY22 along with an improvement in the
overall liquidity profile, though this would depend on the
enhancement in fund-based working capital limits, the sanction
request for which is under review.

KEY RATING DRIVERS

KPW's revenue rose sharply to INR1,189.6 million in FY21 (FY20:
INR392.5 million), backed by higher direct sales to end-customers.
The scale of operations remained small. The company booked revenue
of INR1,250 million in 7MFY22. The agency expects the revenue to
increase on a yoy basis in FY22, led by the acquisition of new and
reputed customers coupled with an increase in capacity utilization
(FY21: 67% of installed capacity of 12,000 metric tons; FY20: 12%
of installed capacity of 12,000 metric tons).

Furthermore, KPW's working capital cycle improved to 81 days in
FY21 (FY20: 108 days) on account of a decrease in the inventory
holding period to 57 days (130 days). In 7MFY22, the debtor days
improved to 20 days. Consequently, Ind-Ra expects the overall
working capital cycle to improve further in FY22.

The ratings reflect the average EBITDA margins due to the nature of
the business. Furthermore, the margins are volatile due to the
fluctuations in the prices of the key input, polymer granule, which
is derivative of crude oil. The margin declined to 9.1% in FY21
(FY20: 11.8%; FY19: 4.8%) due to an increase in the prices of
polymer granules. The ROCE was 12.3% in FY21 (FY20: 4.4%). In FY22
and over the medium term, the management expects the EBITDA margin
to improve marginally owing to the measures undertaken by the
company to enhance labor efficiency and also because power cost as
a percentage of sales would fall to 0.5% from 1% due to the
installation of a captive solar plant. Ind-Ra expects KPW's
profitability to grow in FY22, backed by the higher absorption of
fixed costs due to the likely growth in revenue.

Liquidity Indicator - Stretched: KPW's average maximum utilization
of the fund-based limits was around 98% over the 12 months ended
October 2021. In FY21, the cash flow from operations turned
negative at INR239.6 million in FY21 (FY20: INR67.8 million),
mainly on account of higher working capital requirements.
Consequently, the free cash flow also turned negative at INR280
million (FY20: neg INR4.2 million). The cash and cash equivalents
stood at INR0.8 million in FY21 (FY20: INR5.9 million). In FY22,
Ind-Ra expects the cash flow from operations to improve due to a
decline in working capital requirements.

The ratings continue to be constrained by forex risk. Exports,
which are denominated in foreign currency, accounted for 49% of the
company's sales in FY21. Hence, any significant movement in the
exchange rates could lead to volatility in the EBITDA margins.
However, KPW has been mitigating the risk involved in forex
transactions through forward contracts.

The ratings factor in KPW's moderate credit metrics. The company's
debt at FYE20 comprised interest-free unsecured loans of INR320.1
million, which will stay invested in the business until the
maturity of machineries loan in 2027. However, KPW availed a loan
of INR380 million in FY21, causing the total debt to increase to
INR650.3 million (FY20: INR321.4 million). Consequently, the
interest cost rose to INR26.9 million in FY21(FY20:INR0.3 million).
As a result, the interest coverage ratio (operating EBITDA/gross
interest expense) stood at 4x in FY21 (FY20: 144.6x). The net
leverage (total adjusted net debt/operating EBITDAR) was 6.2x in
FY21 (FY20: 7.0x). Excluding the unsecured loans, the net leverage
was 3.5x in FY21 (FY20: 1.3x). The agency expects the overall
credit metrics to improve in FY22 owing to an increase in the
operating profit along with the scheduled repayment of term loans.
The company plans to incur capex of INR20.3 million in FY22 for
importing fusion bag machines; this would be funded from internal
cash accruals. In FY23, KPW plans to install rooftop solar power
system at a capex of INR70 million. The installation is likely to
be completed by July 2023, and the benefit of the same is likely to
start accruing from 3QFY23.

The ratings continued to be supported by the promoters' experience
of over two decades in the packaging business. Also, the company
belongs to the Champalal group, which operates in various
businesses such as the manufacturing of flexible packaging, salt
processing, plastic recycling, logistics and timber trading. This
will help KPW establish its presence in the market and secure
orders.  

RATING SENSITIVITIES

Negative: A further stretch in the liquidity position or any
decline in the revenue, on a sustained basis, will be negative for
the ratings.

Positive: A substantial improvement in the revenue along with the
availability of additional working capital limits to the tune of
INR150 million, and subsequent lower utilization of the working
capital limits, thus keeping an adequate cushion, and leading to an
improvement in the liquidity, could lead to a positive rating
action.

COMPANY PROFILE

Incorporated in 2010, KPW commenced commercial operations in
April,2019 with manufacturing facilities located in Sanand,
Ahmedabad and Gandhidham. It manufactures flexible intermediate
bulk container bags for the food and pharma industries. KPW's
overall management is headed by Pritesh Parekh.

KANEL INDUSTRIES: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Kanel Industries Limited
        203/Abhijeet Buildings
        Near Mithakhali 6 Road
        Ellisbridge
        Ahedabad 380006
        Gujarat

Insolvency Commencement Date: December 3, 2021

Court: National Company Law Tribunal, Ahmedabad Bench

Estimated date of closure of
insolvency resolution process: June 1, 2022

Insolvency professional: Mr. Prashant Bharatkumar Patel

Interim Resolution
Professional:            Mr. Prashant Bharatkumar Patel
                         51, Hariom Villa
                         Near Iscon Flower Flats
                         Bopal Ghuma Road
                         Ahmedabad 380058
                         E-mail: prashant167@gmail.com

                            - and -

                         409, West Face
                         Nr Bagbhan Party Plot
                         Cross Road
                         Zydus Hospital Road
                         Thaltej, Ahmedabad 380059
                         E-mail: cirp.kanel@gmail.com

Last date for
submission of claims:    December 23, 2021


MBS SERVICES: Ind-Ra Moves BB+ Issuer Rating to Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated MBS Services'
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 action is:

-- INR160 mil. Fund-based working capital limits migrated to non-
     cooperating category with IND BB+ (ISSUER NOT
     COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
November 2, 2020. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Formed in 2005, MBS is engaged in leasing of commercial properties
in Chandigarh. Tarninder Singh is the promoter.


MJM INDUSTRIES: Ind-Ra Withdraws 'B' Long-Term Issuer Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn MJM Industries
Private Limited's Long-Term Issuer Rating of 'IND B (ISSUER NOT
COOPERATING)'.

The instrument-wise rating action is:

-- The 'IND B' rating on the  INR200.00 mil. Proposed term loan
     is withdrawn.

KEY RATING DRIVERS

Ind-Ra is no longer required to maintain the rating as the company
has been struck off from the Register of Companies and thus no
longer exists. This is consistent with the Securities and Exchange
Board of India's circular dated March 31, 2017 for credit rating
agencies.

COMPANY PROFILE

Incorporated in March 2013, MJM Industries is engaged in the
manufacturing of liquefied petroleum gas-operated iron boxes.


PEC LIMITED: Ind-Ra Keeps 'D' LT Issuer Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained PEC Limited's
Long-Term Issuer Rating in 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 suing the
rating. The rating will continue to appear as 'IND D (ISSUER NOT
COOPERATING)' on the agency website.

The instrument-wise rating actions are:

-- INR29.750 bil. Fund-based working capital limits (Long-term/
     Short-term) maintained in non-cooperating category with IND D

     (ISSUER NOT COOPERATING) rating; and

-- INR4.570 bil. Non-fund-based working capital facilities
     (Short-term) maintained in non-cooperating category with IND
     D (ISSUER NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
August 23, 2019. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Incorporated in 1971, PEC is a public sector undertaking under the
Ministry of Commerce and Industry, Department of Commerce, the
government of India. The company's primary business interests are
exports, imports, deemed exports, third-country trading of
agro-commodities, industrial raw materials, and bullion, and
arranging financing, logistics, project exports and management.  


RELCON INFRAPROJECTS: Ind-Ra Moves 'BB+' Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Relcon
Infraprojects Ltd.'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:      

-- INR2.090 bil. Non-fund-based limit migrated to non-cooperating

     category with IND A4+ (ISSUER NOT COOPERATING) rating; and

-- INR410 mil. Fund-based limits migrated to non-cooperating
     category with IND BB+ (ISSUER NOT COOPERATING)/IND A4+
     (ISSUER NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
November 25, 2020. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Relcon Infraprojects undertakes civil construction work in
Maharashtra (mainly Mumbai) and Gujarat and also manufactures ready
mix concrete.


SANVI MILK: Insolvency Resolution Process Case Summary
------------------------------------------------------
Debtor: Sanvi Milk and Milk Products Private Limited
        A/P-Mayani, Tal-Khatav
        Dist-Satara
        Maharashtra 417102
        India

Insolvency Commencement Date: November 18, 2021

Court: National Company Law Tribunal, Mumbai Bench

Estimated date of closure of
insolvency resolution process: June 4, 2022

Insolvency professional: Mr. Indrajit Mukherjee

Interim Resolution
Professional:            Mr. Indrajit Mukherjee
                         Flat No. B 405
                         Siddhivinayak Twins
                         Plot No. 9, Sector 17
                         Roadpali, Kalamboli
                         Navi Mumbai, Raigad
                         Maharashtra 410218
                         E-mail: indrajitmukherjee15@yahoo.com

                            - and -

                         Kanchansobha Debt Resolution Advisors
                         Pvt Ltd
                         1507-Wing, One BKC
                         Plot No. 66, G Block
                         Bandra Kurla Complex
                         Bandra East, Mumbai 400051
                         E-mail: sanvimilk@kanchansobha.com

Last date for
submission of claims:    December 22, 2021


SEJAL PROPERTIES: Ind-Ra Corrects November 25, 2021 Rating Release
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) rectified Sejal Properties
Private Limited's (SPPL) rating release published on November 25,
2021 to state the disclosures associated with the provisional
rating.

The amended version is:

India Ratings and Research (Ind-Ra) has rated Sejal Properties
Private Limited's (SPPL) proposed non-convertible debentures (NCDs)
as follows:

-- INR1.450 bil. Proposed NCDs* assigned with Provisional IND
     B/Stable rating.

*The rating is provisional on account of the impending transfer of
a 40.5 acres land parcel from a group company Srishti
Infrastructure Development Corporation Limited (SIDCL) to SPPL for
its yet-to-be launched residential project. SPPL will take over
Phase II of the project Srishtinagar township in Guwahati from its
sister concern SIDCL (admeasuring 40.5 acres) and develop it. The
final rating will be assigned on the receipt of the necessary
authority approvals and executed documents, signifying completion
of the transfer. In the absence of the approvals and documentation
considered while assigning the provisional rating, the agency would
not assign any rating to the proposed instruments.

ANALYTICAL APPROACH: Ind-Ra has taken a standalone view of SPPL's
financial profile, as the company intends to utilize all sales
proceeds from the project only to repay its debt, after meeting the
construction costs. Cash flows from the project are ring fenced
from the cash flows of other group entities.

KEY RATING DRIVERS

The rating is constrained by the recent financial difficulties
faced by some of group entities (including SIDCL).

The rating is also constrained by the small scale of SPPL's
operations. It has a total asset size of roughly INR1 million. The
company's ability to pay back the rated NCDs is a function of cash
inflows from Phase II of the project, which is not yet launched.

The company has obtained majority regulatory permissions and its
management expects to launch Phase II of the project in April 2022.
Ind-Ra expects SPPL to get the ownership of 40.5 acres of
residential land in a larger 250-acre Shristinagar township in
Guwahati, Assam as it takes over INR1,450 million NCDs from SIDCL.
The township has reported annual sales of roughly INR500 million in
Phase I under SIDCL.

According to a valuation exercise by Jones Lang LaSalle (JLL)
Property Consultants (India), the land has a market value of
INR2,196 million, as against the proposed NCDs of INR1,450 million.
Other than this, SPPL does not have any debt.

Liquidity Indicator – Poor: As at FYE21, SPPL had cash and cash
equivalents of INR1.3 million and no undrawn fund-based limits are
available for the entity.

However, the rating is supported by the proven location and sales
track record of Phase I of the project.

RATING SENSITIVITIES

Positive: Successful launch of the project with realization of
significant cash flows to comfortably service the proposed debt
could result in a rating upgrade.

Negative: Substantial delays in project commencement and/or a
sustained poor liquidity position could result in a downgrade.

COMPANY PROFILE

Established in 1995, SPPL is a Kolkata-based Kanoria Foundation
Limited real estate company.


SHRIRAM TRANSPORT: S&P Affirms 'BB-' Long-Term ICR, Outlook Stable
------------------------------------------------------------------
S&P Global Ratings affirmed its 'BB-' long-term issuer credit
rating on Shriram Transport Finance Co. (STFC). The outlook is
stable. At the same time, S&P affirmed its 'B' short-term issuer
credit rating on the finance company.

On Dec. 13, 2021 STFC announced a merger with Shriram City Union
Finance Ltd. (SCUF); the two entities are the listed lending units
under Shriram Group. S&P believes the merger will help to further
consolidate the financial profile on STFC.

STFC's proposed merger with Shriram City Union Finance Ltd. (SCUF)
will improve its business and funding profiles. S&P expects the
post-merger STFC to maintain its market leadership in financing
pre-owned commercial vehicles in India (25%-27% market share). The
additional business lines inherited from SCUF will help to
moderately diversify the company's revenue base with established
market presence in higher margin niches such as micro, small and
midsize enterprise (MSME) loans, and financing for two-wheelers.
The merged entity will also have more than 3,500 branches
nationwide, which are mostly located in semi-urban and rural India.
The merged entity will have access to more than 20 million Indian
customers, most from underpenetrated semi-urban and rural markets
where the growth potential is high. S&P said, "We also expect STFC
to have marginally increased access to bank loans and domestic
fixed deposits after its merger with SCUF. The merger is still
subject to various board and regulatory approvals and is expected
to take around 10-12 months to complete. We expect minimal
financial impact from the reverse merger of Shriram Capital's
current equity holdings in STFC and SCUF into the new entity."

The rating impact from this merger is neutral given the fractional
size of SCUF relative to STFC. SCUF only accounts for slightly more
than 20% of the merged company's balance sheet based on pro forma
financials. Accordingly, S&P believes the combined entity will
carry a similar portfolio mix that is in line with STFC's current
one, i.e. with most of its exposure toward used-vehicle financing
in the next two to three years. Likewise, the funding profile of
the merged company will stay diversified and continuously funded by
wholesale markets.

S&P said, "We also have an unaltered view on the risk profile on
the company post the merger, as both STFC and SCUF operate in
higher risk and higher return business lines that are targeting low
income, underbanked customers in semi-urban and rural areas of
India. The income and cash flows of those borrowers tend to be
erratic. The credit risk and loss experience of these portfolios
are higher than that of local nonbank financial institutions (NBFI)
peers that focus on low-risk gold loans, or on salaried workers in
urban areas. That said, both companies, especially STFC, have
accumulated many years' experience in lending to their particular
niche of client, and the granular ticket size of their lending
portfolio also helps contain the credit cost."

S&P's stable ratings outlook on STFC is further supported by the
company's steadily recovering business performance after the
retreat of India's highly disruptive second COVID wave. STFC's
business was less disrupted than that of its NBFI peers during
India's second COVID wave in the second quarter of 2021. Most of
STFC's truck-owner customers are involved in the transport of
essential goods and were allowed to operate as usual through many
regional lockdowns. The entity's collection rates had steadily
improved to 99.49% as of September 2021, from 87% as of May 2021.
Its asset under management also grew 7.32% year on year in the
first half of financial year 2022 (ending March 31, 2022),
supported by increased demand for used vehicles.

STFC's asset quality improved progressively in June-September 2021,
supported by a broad economic recovery in India. This has led to a
normalized credit cost of 227 bps (annualized) in the second
quarter of financial year 2022. This is from a very high level of
492 bps (annualized) in the first quarter of financial year 2022
when the company frontloaded provisioning to manage the potential
downside of the COVID second wave on the firm's business. S&P's
base case expects the full-year credit cost of financial year 2022
to be around 280 bps to 300 bps.

S&P said, "The stable ratings outlook reflects our view that STFC
will largely maintain its current financial profile after its
planned merger with SCUF. The stable outlook on STFC also reflects
our view that the likely deterioration in asset quality due to the
pandemic will be manageable over the next 12 months.

"We will lower our ratings on STFC if the company's asset quality
deteriorates significantly. This could curtail STFC's access to
funds, straining its liquidity.

"We could also lower the rating if STFC's risk-adjusted capital
ratio declines to below 10% on a sustained basis or if the
company's business position is hit such that credit growth is
reliant on securitizing assets.

"We don't see an upside to the rating over the next 12 months."


VHV BEVERAGES PRIVATE: Insolvency Resolution Process Case Summary
-----------------------------------------------------------------
Debtor: VHV Beverages Private Limited

        Registered office:
        14-B, 4th Floor, Front Side Flat
        Vijay Park, Najafgarh
        New Delhi 110043

        Also at:
        Khasra No. 151/16/3, 24/2, 25
        VPO Rohad 124501 Haryana

Insolvency Commencement Date: December 9, 2021

Court: National Company Law Tribunal, Bench-IV, New Delhi

Estimated date of closure of
insolvency resolution process: June 7, 2022
                               (180 days from commencement)

Insolvency professional: Rahul Khanna

Interim Resolution
Professional:            Rahul Khanna
                         110-B, Oriental Apartments
                         Plot No. 50, Sector-9
                         DC Chowk, Rohini 110085
                         E-mail: rk_3398@rediff.com

                            - and -

                         Immaculate Resolution Professionals
                         Private Limited
                         Unit No. 112, First Floor, Tower-A
                         Spazedge Commercial Complex
                         Sector-47, Sohna Road
                         Gurgaon 122018
                         E-mail: cirp.vhvbeverages@gmail.com

Last date for
submission of claims:    December 24, 2021


VIJAI CONSTRUCTION: Ind-Ra Lowers Long-Term Issuer Rating to 'BB+'
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Vijai
Construction (India) Private Limited's (VCIPL) Long-Term Issuer
Rating to 'IND BB+ (ISSUER NOT COOPERATING)' from 'IND BBB (ISSUER
NOT COOPERATING)'.

The instrument-wise rating actions are:

-- INR80 mil. Fund-based working capital limits downgraded with
     IND BB+ (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT
     COOPERATING) rating; and

-- INR440 mil. Non-fund-based limit downgraded with IND A4+
     (ISSUER NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information

KEY RATING DRIVERS

The downgrade is pursuant to the Securities and Exchange Board of
India's circular SEBI/HO/MIRSD/CRADT/CIR/P/2020/2 dated January 3,
2020. According to the circular, any issuer with an
investment-grade rating remaining non-cooperative with a rating
agency for over six months should be downgraded to a sub-investment
grade rating.  

The current outstanding rating of 'IND BB+ (ISSUER NOT
COOPERATING)' may not reflect VCIPL's credit strength as the
company has been non-cooperative with the agency since April 20,
2021. Therefore, investors and other users are advised to take
appropriate caution while using these ratings.

COMPANY PROFILE

Established in 2011, VCIPL is engaged in the construction of roads
and other allied works.


VIJAYAA STEELS: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Vijayaa Steels Limited
        Chinnathimmanapalya
        (Subbayyanapalya)
        A Hosahalli Dakale
        Kunigal Taluk, Tumkur
        Karanata 572130
        IN

Insolvency Commencement Date: December 9, 2021

Court: National Company Law Tribunal, Bengaluru Bench

Estimated date of closure of
insolvency resolution process: June 7, 2022

Insolvency professional: Mr. Hari Babu Thota

Interim Resolution
Professional:            Mr. Hari Babu Thota
                         #41/1, 2nd Floor, A Wing
                         11th Cross, 8th Main, 2nd Block
                         Jayanagar, Bangalore
                         Karnataka 560011
                         E-mail: csharibabuthota@gmail.com
                                 vijayaasteelsip@gmail.com

Last date for
submission of claims:    December 27, 2021



                           *********


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
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Information contained herein is obtained from sources believed
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                *** End of Transmission ***