/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/220314.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Monday, March 14, 2022, Vol. 25, No. 46 Headlines A U S T R A L I A DUNDAS MINING: Mallee Resources to Buy Avebury Nickel Mine FORWARD MINING: First Creditors' Meeting Set for March 21 MEGACRANE HOLDINGS: First Creditors' Meeting Set for March 21 MORTGAGE HOUSE NO.1: S&P Assigns B (sf) Rating to Class F Notes PLENTI PL-GREEN 2022-1: Moody's Assigns B2 Rating to Class F Notes PROBUILD: Administrators Probe AUD50MM Transferred to WBHO Infra SHIFT 2022-1PP: Moody's Assigns B2 Rating to AUD4.8MM Cl. F Notes SUPERIOR WINDOWS: First Creditors' Meeting Set for March 22 TOKYO SUSHI: First Creditors' Meeting Set for March 23 YOUPLA GROUP: First Creditors' Meeting Set for March 23 C H I N A LEADING HOLDINGS: Fitch Withdraws 'B' LT IDR NN INC: Amends $150-Mil. Term Loan With Oaktree-Managed Funds REMARK HOLDINGS: Receives Noncompliance Notice From Nasdaq TD HOLDINGS: Gets 180-Day Extension to Regain Nasdaq Compliance TIMES CHINA: Fitch Lowers Long-Term FC IDR to 'B+', Outlook Neg. TSINGSHAN HOLDING: Gets Loans from Lenders to Meet Margin Calls I N D I A AASTHA SPINTEX: Ind-Ra Assigns BB+ Long Term Issuer Rating ARCHIT ORGANOSYS: Ind-Ra Assigns BB- Issuer Rating, Outlook Stable BALLARPUR INDUSTRIES: NCLAT Stays Liquidation Order BATHSHA MARINE: CRISIL Assigns B+ Rating to INR0.50cr Loans BHIMA AND BROTHER: Ind-Ra Cuts Long Term Issuer Rating to 'BB' BOLA RAGHAVENDRA: CRISIL Lowers Long/Short Term Rating to D BOY SCOUTS: Justice Law, et al. Represent Unsecured Claimants BR DESIGNS: CARE Moves D Debt Ratings to Not Cooperating COTTON BLOSSOM: Ind-Ra Keeps 'D' Issuer Rating in Non-Cooperating DAS PROCESSORS: CARE Lowers Rating on INR4.00cr LT Loan to B GH REDDY: CRISIL Withdraws B Rating on INR13.5cr LT Loan GOLD PLUS: Ind-Ra Keeps 'BB+' LT Issuer Rating in Non-Cooperating GPR INFRA: Ind-Ra Keeps 'D' LT Issuer Rating in Non-Cooperating GUJARAT CONSTRUCTION: CRISIL Lowers Long/Short Term Rating to D GURU RAGHAVENDRA: Ind-Ra Lowers Long Term Issuer Rating to 'D' HIM CHEM: CRISIL Raises Rating on INR5cr Term Loan to B+ HOME ZONE: CRISIL Withdraws B- Long Term Rating JAI GANESH: Ind-Ra Lowers Long Term Issuer Rating to 'BB' JORABAT SHILLONG: Ind-Ra Affirms 'D' Non-Convertible Debts Rating KARSHANBHAI GANGARAM: CRISIL Assigns B+ Rating to INR3cr Loan KONER FOOD: CARE Lowers Rating on INR8.90cr LT Loan to B- KYS MANUFACTURORS: CARE Cuts Rating on INR14cr LT Loan to B NAFREF ENGINEERS: CARE Keeps C Debt Rating in Not Cooperating NJR CONSTRUCTIONS: Ind-Ra Assigns 'BB+' Long Term Issuer Rating PHOTON ENERGY: CRISIL Cuts Long/Short Term Rating to D RAIPUR DEVELOPMENT: Ind-Ra Keeps 'D' Loan Rating in Non-Cooperating RAJI MATHEW: Ind-Ra Affirms BB LT Issuer Rating, Outlook Stable RELIANCE CAPITAL: CARE Keeps D Debt Ratings in Not Cooperating RUBY MICA: CRISIL Withdraws B+ Rating on INR2.5cr Cash Loan RYATAR SAHAKARI: CRISIL Lowers Rating on INR26cr LT Loan to D SAI TRADERS: Ind-Ra Assigns 'BB' Issuer Rating, Outlook Stable SANTIMOYEE COLD: CRISIL Assigns B+ Rating to INR10cr Loans SREELEKSHMI CASHEW: CRISIL Assign B+ Rating to INR9cr New Loan SREESHA EDUCATIONAL: CRISIL Withdraws D Rating on INR15cr Loan SURYADIPTA PROJECTS: CRISIL Lowers Rating on INR2.9cr Loans to B+ TARA EDUCATIONAL: CRISIL Cuts Long/Short Term Rating to D TROIX CHEMICALS: CARE Moves B+/A4 Debt Rating to Not Cooperating VELAMMAL EDUCATIONAL: Ind-Ra Assigns BB Bank Loan Rating VENKATESWARA & COMPANY: Ind-Ra Assigns B- Long Term Issuer Rating VIMAX CROP: CRISIL Withdraws B- Rating on INR15cr Loans J A P A N TAKATA CORP: Appeal From Airbag Suit Dismissal May Proceed M A L A Y S I A CAPITAL A: No Danajamin Loan After Top Duo Refuse to Be Guarantors N E W Z E A L A N D CLOUD M: Creditors' Proofs of Debt Due April 15 CO CONTRACTING: Court to Hear Wind-Up Petition on April 7 NORTH AUCKLAND: Creditors' Proofs of Debt Due April 13 REX CONSTRUCTION: Creditors' Proofs of Debt Due April 19 WESTERN COMPASS: Court to Hear Wind-Up Petition on May 6 S I N G A P O R E ALPHA DX: Receives Compliance Notice After 4 Directors Quit EAGLE HOSPITALITY: Seeks Recognition of Liquidation Order for Units EZION HOLDINGS: Creditors' Meeting Set for March 22 LEBARA MEDIA: Commences Wind-Up Proceedings PRECISION SPINE: Nexia TS Appointed as Liquidators TRUST-LINK FREIGHT: Court Enters Wind-Up Order XIHE HOLDINGS: Court to Hear Wind-Up Petition on March 24 - - - - - ================= A U S T R A L I A ================= DUNDAS MINING: Mallee Resources to Buy Avebury Nickel Mine ---------------------------------------------------------- Lisa Simcock at The Market Herald reports that Mallee Resources (MYL) now has a clear path to purchase the Avebury nickel sulphide project in western Tasmania after executing its deed of company arrangement (DOCA) with Hartree Metals. Under the agreement, Mallee can buy Allegiance Mining which owns the Avebury project for AUD85.9 million, through cash and shares, the report says. Market Herald relates that Malle will also reimburse an estimated AUD23.2 million in expenditure incurred in the development of Avebury during the DOCA term. Notably, Avebury is host to an established underground mine development, processing plant and mine infrastructure. According to the report, Managing Director John Lamb said this purchase is a "transformative opportunity" and said he was a former General Manager of Avebury and knows "the great potential of this mine". "It stands amongst the best nickel sulphide projects in Australia in terms of scale and grade and it comes with an established underground mine, processing plant and site infrastructure," the report quotes Mr. Lamb as saying. "There has rarely been a better time to acquire a nickel sulphide project with a clear path to near-term production. MYL is pleased to work with Hartree Metals as financiers and off-takers to successfully commercialise the Project and their products." Mallee is now reviewing the existing Avebury mine re-start plans, the report says. Once these plans have been finalised, the company will make further announcements about the work programs, schedules, key commercial agreements and financial plans, Market Herald adds. About Dundas Mining Dundas Mining offers non-ferrous metal mining services. The Company serves customers in Australia. Richard Tucker and John Bumbak of KordaMentha were appointed as administrators of Dundas Mining Pty Ltd, AGG Fortune Pty Ltd, Allegiance Mining Pty Ltd, Colour Metal Pty Ltd and Winched Investment Pty Ltd on Nov. 30, 2021. FORWARD MINING: First Creditors' Meeting Set for March 21 --------------------------------------------------------- A first meeting of the creditors in the proceedings of Forward Mining Limited will be held on March 21, 2022, at 2:30 a.m. via virtual meeting technology. Philip Campbell Wilson and Said Jahani of Grant Thornton Australia were appointed as administrators of Forward Mining on March 9, 2022. MEGACRANE HOLDINGS: First Creditors' Meeting Set for March 21 ------------------------------------------------------------- A first meeting of the creditors in the proceedings of Megacrane Holdings Pty Ltd and Hyrise Holdings Pty Ltd will be held on March 21, 2022, at 11:00 a.m. at the offices of O'Brien Palmer, Level 9, 66 Clarence Street, in Sydney, NSW. Liam Bailey of O'Brien Palmer was appointed as administrator of Megacrane Holdings on March 9, 2022. MORTGAGE HOUSE NO.1: S&P Assigns B (sf) Rating to Class F Notes --------------------------------------------------------------- S&P Global Ratings assigned its ratings to nine classes of prime residential mortgage-backed securities (RMBS) issued by Perpetual Trustee Co. Ltd. as trustee for Mortgage House Capital Mortgage Trust No.1 - Mortgage House RMBS Series 2022-1. Mortgage House RMBS Series 2022-1 is a securitization of residential mortgages originated by Mortgage House of Australia Pty Ltd. The ratings reflect: -- S&P views of the credit risk of the underlying collateral portfolio, including its view that the credit support provided to each class of notes is commensurate with the ratings assigned. Credit support for the rated notes comprises note subordination, lenders' mortgage insurance (LMI) on 6.6% of the loans in the portfolio, and excess spread. -- The underwriting standard and centralized approval process of the seller, Mortgage House of Australia. -- S&P's expectation that the various mechanisms to support liquidity within the transaction, including a liquidity facility equal to 1.2% of the outstanding balance of the notes, principal draws, and a loss reserve that builds from excess spread, are sufficient under our stress assumptions. -- The benefit of a fixed- to floating-rate interest-rate swap provided by Westpac Banking Corp. to hedge the mismatch between receipts from any fixed-rate mortgage loans and the variable-rate RMBS. Ratings Assigned Mortgage House Capital Mortgage Trust No.1 - Mortgage House RMBS Series 2022-1 Class A1-S, A$101.00 million: AAA (sf) Class A1-L, A$324.00 million: AAA (sf) Class A2, A$35.00 million: AAA (sf) Class AB, A$8.80 million: AAA (sf) Class B, A$12.60 million: AA (sf) Class C, A$7.85 million: A (sf) Class D, A$4.90 million: BBB (sf) Class E, A$2.80 million: BB (sf) Class F, A$1.60 million: B (sf) Class G, A$1.45 million: Not rated PLENTI PL-GREEN 2022-1: Moody's Assigns B2 Rating to Class F Notes ------------------------------------------------------------------ Moody's Investors Service has assigned the following definitive ratings to the notes to be issued by Perpetual Corporate Trust Limited in in its capacity as trustee of the Plenti PL-Green ABS 2022-1 Trust. Issuer: Plenti PL-Green ABS 2022-1 Trust AUD147.80 million Class A1 Notes, Assigned Aaa (sf) AUD65.00 million Class A1-G Notes, Assigned Aaa (sf) AUD21.70 million Class B Notes, Assigned Aa2 (sf) AUD13.30 million Class C Notes, Assigned A2 (sf) AUD7.00 million Class D Notes, Assigned Baa2 (sf) AUD8.40 million Class E Notes, Assigned Ba1 (sf) AUD9.80 million Class F Notes, Assigned B2 (sf) AUD7.00 million Class G Notes is not rated by Moody's Plenti PL-Green ABS 2022-1 Trust is a static cash securitization of personal loans, renewable energy loans and renewable energy buy-now-pay-later (BNPL) receivables, extended to consumer obligors located in Australia. All receivables were originated by Plenti Finance Pty Limited (Plenti, unrated). Plenti is an Australian non-bank lender providing consumer loans, including unsecured personal loans, renewable energy loans, secured auto loans and renewable BNPL contracts, to prime borrowers in Australia. Plenti is 100- owned subsidiary of Plenti Group Limited, established in 2014 and listed on the Australian stock exchange. As of December 2021 Plenti has originated circa $1.2 billion in personal and renewable energy loans. RATINGS RATIONALE The definitive ratings take into account, among other factors, Moody's evaluation of the underlying receivables and their expected performance, an evaluation of the capital structure and credit enhancement provided to the notes, the availability of excess spread over the life of the transaction, the liquidity facility in the amount of 1.5% of the rated notes' balance, the legal structure, the experience of Plenti RE Limited as servicer; and the presence of Perpetual Corporate Trust Limited (Perpetual) as a back-up servicer. According to Moody's, the transaction benefits from the high level of excess spread available to cover losses arising from the portfolio. The key challenge in the transaction is the limited historical data available for the portfolio. Plenti is a relatively new originator, with historical default data for its personal loan book only available from 2014 and for its renewable energy receivables from 2015. As such, the pool's performance could be subject to greater variability than the observed data indicates. The transaction's key features are as follows: Once stepdown conditions are satisfied, all notes, excluding the Class G notes, will receive their pro-rata share of principal. Step-down conditions include, among others, 35% subordination to the Class A notes and no unreimbursed charge-offs. A swap provided by National Australia Bank Limited (Aa3/P-1/Aa2(cr)/P-1(cr)) will hedge the interest rate mismatch between the assets bearing a fixed rate of interest, and floating rate liabilities. The notional balance of the swap will follow a schedule based on amortization of the rated notes assuming a certain prepayment rate. Perpetual is the back-up servicer. If Plenti RE Limited is terminated as servicer, Perpetual will take over the servicing role in accordance with the standby servicing deed and its back-up servicing plan. Key model and portfolio assumptions: Moody's Portfolio Credit Enhancement ("PCE") — representing the loss that Moody's expects the portfolio to suffer in the event of a severe recession scenario — is 28%. Moody's mean default for this transaction is 5.5%. The assumed recovery rate is 7.5%. Expected defaults, recoveries and PCE are parameters used by Moody's to calibrate its lognormal portfolio loss distribution curve and to associate a probability with each potential future loss scenario in Moody's cash flow model to rate consumer ABS. Key pool features are as follows: The weighted average interest rate of the portfolio is 9.1%, with interest rates ranging from 3.9% to 25.6%. The weighted average Equifax credit score of the portfolio is around 798. The weighted average remaining term of the portfolio is 62.0 months. The weighted average seasoning of the initial portfolio is 6.1 months. Renewable energy receivables constitute 26.4% of the portfolio. Renewable energy receivables are loans and buy-now-pay-later (BNPL) contracts extended to obligors for the purchase of and installation of residential renewable energy equipment such as solar panels and home batteries. Renewable energy receivables have historically displayed lower loss rates than other consumer personal loans. The principal methodology used in these ratings was "Moody's Approach to Rating Consumer Loan-Backed ABS" published in September 2021. Factors that would lead to an upgrade or downgrade of the ratings: Up Levels of credit protection that are greater than necessary to protect investors against current expectations of loss could lead to an upgrade of the ratings. Moody's current expectations of loss could be better than its original expectations because of fewer defaults by underlying obligors. The Australian job market is a primary driver of performance. Down Levels of credit protection that are insufficient to protect investors against current expectations of loss could lead to a downgrade of the ratings. Moody's current expectations of loss could be worse than its original expectations because of more defaults by underlying obligors. The Australian job market is a primary driver of performance. Other reasons for worse performance than Moody's expects include poor servicing, error on the part of transaction parties, a deterioration in credit quality of transaction counterparties, lack of transactional governance and fraud. PROBUILD: Administrators Probe AUD50MM Transferred to WBHO Infra ---------------------------------------------------------------- Guardian Australia reports that administrators of the collapsed Probuild Constructions building empire said they will investigate a transaction last year in which almost AUD50 million was transferred from other parts of the business to the group's struggling civil construction division. Company documents show Probuild's civil construction company, WBHO Infrastructure, borrowed AUD48.7 million from other parts of the group last year as it struggled to survive massive losses caused by one of its key projects, the western roads upgrade in Melbourne, Guardian Australia relays. Guardian Australia relates that the loan included AUD29.2 million from Probuild's building arm, Probuild Constructions (Aust), sparking industry fears money that could have been used to pay subcontractors was instead used to prop up the infrastructure arm of the business, and leading to renewed calls from the construction union for reforms protecting payments to subbies. An additional AUD19.5 million came from the head company of the Australian Probuild group, WBHO Australia. According to the report, industry sources said that only about AUD5 million of the loan has been repaid. Through a spokesperson, Probuild's administrators, Deloitte partners Sal Algeri, Jason Tracy, Matt Donnelly and David Orr, said they could not comment on the group's finances because they were focused on "stabilising the businesses and securing sales to maximise the outcome for employees and all creditors". "But yes the issue will be examined," the spokesperson said, notes the report. On March 7, the administrators said they had reached an "in principle agreement" to sell most of Probuild's Victorian assets to NSW company Roberts Co, resumed work on a hotel project in East Melbourne and handed the Westside Place Ritz Carlton project in Melbourne's CBD back to its developer, Far East Consortium. Probuild's directors called in the administrators early in March after the group's owner, South Africa's WBHO, decided to stop financially supporting it, despite previously providing a letter to the Australian companies promising support until the end of June. In a statement to the Johannesburg Stock Exchange, WBHO blamed the collapse on factors including Covid-19 restrictions and a decision by the Foreign Investment Review Board in January last year to block the sale of the business to China's state-owned China State Construction Engineering Corporation for a reported AUD300 million, saying the Australian businesses "have not being able to complete projects on time and not been able to recover variation and delay claims". According to the report, the company's statement was "not short on self-justification", federal court judge Jonathan Beach said in a ruling allowing the administrators more time before they have to call a meeting of Probuild's creditors. Dave Noonan, the national secretary of the construction division of the CFMEU, said the circumstances of the AUD50 million loan should be established, Guardian Australia relays. "The industry is rife with rumours that Probuild was compelled to provide cash to the failing WBHO civil business," he told Guardian Australia. "We'd like to see this cleared up. "This is a builder that's had a good reputation for a long time and it's very disappointing to see them go down in this way." Mr. Noonan said he was speaking only as a union official and could not comment on behalf of the development arm of super fund Cbus, Cbus Property, where he is a director. Cbus Property is the developer of one of Probuild's worst-performing projects, a residential skyscraper in Brisbane on which Probuild has chalked up AUD42 million in losses over the past two years. Financial reports show that both Probuild Constructions (Aust) and WBHO Australia were in poor financial shape when they made the loan to WBHO Infrastructure, Guardian Australia notes. Weighed down by the Brisbane losses, Probuild Constructions last year declared a profit of AUD3.1 million but had significant negative operating cashflow of AUD85 million. WBHO Australia declared a AUD31.6 million loss and was also haemorrhaging cash, with negative operating cashflow of AUD225 million, Guardian Australia discloses. About Probuild Melbourne-based Probuild Constructions Australia operates as a building contractor. The Company focuses on commercial, educational and institutional, industrial, residential, retail and entertainment, sport, and leisure contractions. David Orr, Sal Algeri, Jason Tracy and Matt Donnelly of Deloitte were appointed as administrators of Probuild Constructions and related entities on Feb. 23, 2022. SHIFT 2022-1PP: Moody's Assigns B2 Rating to AUD4.8MM Cl. F Notes ----------------------------------------------------------------- Moody's Investors Service has assigned definitive ratings to notes to be issued by BNY Trust Company of Australia Limited, as trustee of Shift 2022-1PP Trust. Issuer: Shift 2022-1PP Trust AUD97.50 million Class A Notes, Assigned Aaa (sf) AUD15.60 million Class B Notes, Assigned Aa2 (sf) AUD9.00 million Class C Notes, Assigned A2 (sf) AUD6.60 million Class D Notes, Assigned Baa2 (sf) AUD9.30 million Class E Notes, Assigned Ba2 (sf) AUD4.80 million Class F Notes, Assigned B2 (sf) The AUD7.20 million of Class G Notes are not rated by Moody's. The transaction is a securitisation of a portfolio of commercial auto and equipment loans and leases originated by Shift Financial Pty Ltd (“Shift”, formally known as Get Capital Pty Ltd). Shift will act as servicer of the transaction. This is Shift's inaugural ABS transaction. Shift is an Australian SME lender providing working capital facilities, term loans and asset finance to Australian businesses since 2014. As of 31 December 2021 Shift has lent circa AUD1.2 billion to over 60,000 Australian businesses. RATINGS RATIONALE The definitive ratings take into account, among other factors, Moody's evaluation of the underlying receivables and their expected performance, an evaluation of the capital structure and credit enhancement provided to the notes, the availability of excess spread over the life of the transaction, the liquidity facility in the amount of 1.5% of the rated notes' balance, the legal structure, the experience of Shift as servicer; and the presence of BNY Trust Company of Australia Limited as a standby servicer. According to Moody's, the transaction benefits from the high level of excess spread available to cover losses arising from the portfolio. The key challenge in the transaction is the limited historical data available for the portfolio. Shift is a relatively new originator, with historical default data for its auto and equipment commercial loan book only available from 2016 and for its unsecured business loans and line-of-credit facilities from 2015. As such, the pool's performance could be subject to greater variability than the observed data indicates. The transaction's key features are as follows: Initially, the Class A, Class B, Class C, Class D, Class E and Class F Notes benefit from 35.00%, 24.60%, 18.60%, 14.20%, 8.00% and 4.80% of note subordination, respectively. Once stepdown conditions are satisfied, all notes, excluding the Class G notes, will receive their pro-rata share of principal. Step-down conditions include, among others, minimum 45% subordination to the Class A notes and no unreimbursed charge-offs. Once Class G stepdown criteria are satisfied, all notes, including the Class G notes, will receive their pro-rata share of principal. Class G Step-down criteria include all stepdown conditions plus a Class F minimum subordination requirement of 17%. A swap provided by National Australia Bank Limited (Aa3/P-1/Aa2(cr)/P-1(cr)) will hedge the interest rate mismatch between the assets bearing a fixed rate of interest, and floating rate liabilities. The notional balance of the swap will follow the schedule amortization of the portfolio. BNY Trust Company of Australia Limited (BNY) is the back-up servicer. If Shift is terminated as servicer, BNY will take over the servicing role in accordance with the standby servicing deed and its back-up servicing plan. BNY has delegated the standby servicer function to Verofi, a specialist third-party standby servicer, however BNY retains legal responsibility for the standby servicer's contractual obligations. Key portfolio features are as follows: The portfolio is highly diversified both at an obligor level and a geographical level. The largest obligor concentration is 0.3%. The portfolio has a high yield of 11.3% which provides excess spread to cure portfolio losses. Heavy commercial vehicle loans are the largest component making up 36.4% of the portfolio, intangible tertiary assets such as installations and fit outs are the second largest component making up 19.6% of the portfolio. Key model assumptions: Moody's assumptions are an expected portfolio loss rate of 7.00%, and a portfolio Aaa credit enhancement (“PCE”) — representing the loss that Moody's expects the portfolio to suffer in the event of a severe recessionary scenario — of 40.00%. To address the limited historical loss data on Shift's portfolio, Moody's have benchmarked the historical performance observed to historical data from and assumptions from comparable Australian commercial auto and equipment ABS originators. Moody's have also overlaid additional stresses into Moody's expected loss and PCE assumptions. Methodology Underlying the Rating Action The principal methodology used in these ratings was "Equipment Lease and Loan Securitizations Methodology" published in August 2021. Factors that would lead to an upgrade or downgrade of the ratings: Factors that could lead to an upgrade of the notes include a rapid build-up of credit enhancement, due to sequential amortization or better-than-expected collateral performance. The Australian job market is a primary driver of performance. A factor that could lead to a downgrade of the notes is worse-than-expected collateral performance. Other reasons that could lead to a downgrade include poor servicing, error on the part of transaction parties, a deterioration in the credit quality of transaction counterparties, or lack of transactional governance and fraud. SUPERIOR WINDOWS: First Creditors' Meeting Set for March 22 ----------------------------------------------------------- A first meeting of the creditors in the proceedings of Superior Windows Pty Limited will be held on March 22, 2022, at 11:00 a.m. via virtual meeting technology. Chad Rapsey of Rapsey Griffiths Turnaround + Advisory was appointed as administrator of SUPERIOR WINDOWS on March 10, 2022. TOKYO SUSHI: First Creditors' Meeting Set for March 23 ------------------------------------------------------ A first meeting of the creditors in the proceedings of Tokyo Sushi Kitchen Franchising Pty Ltd will be held on March 23, 2022, at 10:30 a.m. via virtual teleconference. Con Kokkinos of Worrells Solvency & Forensic Accountants was appointed as administrator of Tokyo Sushi on March 11, 2022. YOUPLA GROUP: First Creditors' Meeting Set for March 23 ------------------------------------------------------- A first meeting of the creditors in the proceedings of Youpla Group Pty Ltd, formerly Trading as ACBF Group Holdings Pty Ltd, will be held on March 23, 2022, at 10:30 a.m. David Michael Stimpson and Terrence John Rose of SV Partners were appointed as administrators of Youpla Group on March 11, 2022. ========= C H I N A ========= LEADING HOLDINGS: Fitch Withdraws 'B' LT IDR -------------------------------------------- Fitch Ratings has withdrawn China-based homebuilder Leading Holdings Group Limited's Long-Term Foreign-Currency Issuer Default Rating (IDR) of 'B' with Stable Outlook. Fitch is withdrawing the ratings as Leading has chosen to stop participating in the rating process. Therefore, Fitch will no longer have sufficient information to maintain the ratings. Accordingly, Fitch will no longer provide ratings or analytical coverage for Leading. KEY RATING DRIVERS No longer relevant, as the ratings have been withdrawn. RATING SENSITIVITIES No longer relevant, as the ratings have been withdrawn. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. ISSUER PROFILE Leading was set up in 1999 and listed on the Hong Kong Stock Exchange in December 2020. It had total contracted sales of CNY23 billion and an attributable saleable land bank of 9.2 million sqm at end-2020. 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. Following the withdrawal of ratings for Leading, Fitch will no longer be providing the associated ESG Relevance Scores. NN INC: Amends $150-Mil. Term Loan With Oaktree-Managed Funds ------------------------------------------------------------- NN, Inc. has amended its 5.5-year $150 million term loan with funds managed by Oaktree Capital Management, L.P. The amendment increases the maximum total leverage ratio covenants for all quarters of 2022 and 2023. "We are pleased to complete this amendment with Oaktree, which allows us to remain focused on our operations and our strategic initiatives towards transformational growth," said Warren Veltman, president and chief executive officer of NN. "The amendment provides us time and flexibility to continue to make the right long-term decisions for the business as we return to a normal operating environment. In 2022, we expect the unprecedented impacts of supply chain disruption for semiconductor chips and other key inputs as well as inflation that we have experienced in 2021 to stabilize. These developments, coupled with the pricing actions we have taken with customers to recover inflation is expected to result in improved profitability in 2022." Transaction Highlights: * Increases quarterly maximum leverage ratio in a range of 0.25x to 0.75x for 2022 and 2023 as specified in the amendment * No change to interest rate Mike Felcher, NN senior vice president and CFO, commented, "We engaged in proactive discussions with Oaktree to reset our leverage ratios at levels that provide us adequate flexibility given the uncertain and challenging macroeconomic conditions our business is facing. We appreciate Oaktree's continued support as an investment partner that understands our business and is committed to our long-term growth strategy." About NN Inc. NN, Inc. -- www.nninc.com -- is a global diversified industrial company that combines advanced engineering and production capabilities with in-depth materials science expertise to design and manufacture high-precision components and assemblies primarily for the electrical, automotive, general industrial, aerospace and defense, and medical markets. The Company has facilities in North America, Europe, South America, and China. NN, Inc. reported a net loss of $100.59 million for the year ended Dec. 31, 2020, a net loss of $46.74 million for the year ended Dec. 31, 2019, and a net loss of $262.99 million for the year ended Dec. 31, 2018. As of Sept. 30, 2021, the Company had $594.71 million in total assets, $318.49 million in total liabilities, $51.38 million in Series D perpetual preferred stock, and $224.83 million in total stockholders' equity. REMARK HOLDINGS: Receives Noncompliance Notice From Nasdaq ---------------------------------------------------------- Remark Holdings, Inc. received written notice from the Listing Qualifications Department of The Nasdaq Stock Market LLC on Feb. 25, 2022, notifying the Company that, for a period of 30 consecutive business days, the bid price of its common stock closed below the minimum of $1.00 per share required for continued listing on the Nasdaq Capital Market pursuant to Nasdaq Listing Rule 5550(a)(2). In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company has 180 calendar days, or until Aug. 24, 2022, to regain compliance with the minimum bid price requirement. If, at any time during the 180-day grace period, the closing bid price of the Company's common stock is at least $1.00 per share for a minimum of 10 consecutive business days, the Company will have regained compliance and Nasdaq will provide it with written confirmation of such. If the Company fails to regain compliance before Aug. 24, 2022, but meet the continued listing requirement for market value of publicly-held shares and all other initial listing standards for the Nasdaq Capital Market, the Company may be eligible for additional time to regain compliance with the minimum bid price requirement. The Company's common stock will continue to be listed and traded on the Nasdaq Capital Market during the 180-day grace period, subject to its compliance with the other continued listing requirements of the Nasdaq Capital Market. About Remark Holdings Remark Holdings, Inc. (NASDAQ: MARK) -- http://www.remarkholdings.com-- delivers an integrated suite of AI solutions that enable businesses and organizations to solve problems, reduce risk and deliver positive outcomes. The company's easy-to-install AI products are being rolled out in a wide range of applications within the retail, financial, public safety and workplace arenas. The company also owns and operates digital media properties that deliver relevant, dynamic content and ecommerce solutions. The company is headquartered in Las Vegas, Nevada, with additional operations in Los Angeles, California and in Beijing, Shanghai, Chengdu and Hangzhou, China. Remark Holdings reported a net loss of $13.68 million for the year ended Dec. 31, 2020, compared to a net loss of $25.61 million for the year ended Dec. 31, 2019. As of Sept. 30, 2021, the Company had $93.08 million in total assets, $24.38 million in total liabilities, and $68.70 million in total stockholders' equity. Los Angeles, California-based Weinberg & Company, the Company's auditor since 2020, issued a "going concern" qualification in its report dated March 31, 2021, citing that the Company has suffered recurring losses from operations and negative cash flows from operating activities and has a negative working capital and a stockholders' deficit that raise substantial doubt about its ability to continue as a going concern. TD HOLDINGS: Gets 180-Day Extension to Regain Nasdaq Compliance --------------------------------------------------------------- TD Holdings, Inc. received notice from the Listing Qualifications Department of the NASDAQ Stock Market LLC, indicating that while the company has not regained compliance with the minimum bid price requirement, the staff has determined that the company is eligible for an additional 180 calendar day period, or until Aug. 29, 2022, to regain compliance. The staff indicated that its determination is based on the company meeting the continued listing requirement for market value of publicly held shares, and all other applicable requirements for initial listing on the Nasdaq Capital Market with the exception of the bid price requirement, and the company's written notice of its intention to cure the deficiency during the second 180-day compliance period by effecting a reverse stock split, if necessary. TD Holdings previously received a letter from NASDAQ notifying the company that it was not in compliance with the Nasdaq Listing Rule 5550(a)(2) because the closing bid price for the company's common stock had closed below $1.00 per share for the previous 30 consecutive business days. The company was provided an initial grace period to regain compliance, which ended on Feb. 28, 2022. If at any time during the second 180-day compliance period the closing bid price of the company's common stock is at least $1.00 per share for a minimum of 10 consecutive business days, the staff will provide written confirmation of compliance. The company will continue to monitor the closing bid price of its common stock and may, if appropriate, consider implementing available options, including but not limited to, implementing a reverse stock split of its outstanding securities, to regain compliance with the minimum bid price requirement. If the company does not regain compliance within the allotted compliance period, Nasdaq will provide notice that the company's common stock will be subject to delisting. The company would then be entitled to appeal that determination to a Nasdaq hearings panel. There can be no assurance that the company will regain compliance with the minimum bid price requirement during the second 180-day compliance period. About TD Holdings TD Holdings, Inc. is a service provider currently engaging in commodity trading business and supply chain service business in China. Its commodities trading business primarily involves purchasing non-ferrous metal product from upstream metal and mineral suppliers and then selling to downstream customers. Its supply chain service business primarily has served as a one-stop commodity supply chain service and digital intelligence supply chain platform integrating upstream and downstream enterprises, warehouses, logistics, information, and futures trading. For more information, please visit http://ir.tdglg.com. TD Holdings reported a net loss of $5.95 million for the year ended Dec. 31, 2020, compared to a net loss of $6.94 million for the year ended Dec. 31, 2019. As of June 30, 2021, the Company had $186.59 million in total assets, $37.33 million in total liabilities, and $149.26 million in total equity. TIMES CHINA: Fitch Lowers Long-Term FC IDR to 'B+', Outlook Neg. ---------------------------------------------------------------- Fitch Ratings has downgraded Times China Holdings Limited's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'B+' from 'BB-'. The Outlook is Negative. Fitch has also downgraded the Chinese homebuilder's senior unsecured rating to 'B+' from 'BB-'. The downgrade reflects weakened financial flexibility due to slower cash collection in 2H21 and limited access to capital markets. The Negative Outlook reflects Fitch's uncertainty about its ability to refinance its capital-market maturities due in 2023 as the offshore bond market remains inaccessible to the company. Times China appears to have sufficient cash at the onshore holdco level to repay most of its maturities for the remainder of 2022. KEY RATING DRIVERS Weakened Liquidity: Fitch expects Times China's liquidity ratio - as defined by unrestricted cash covering short-term debt - to have weakened by end-2021 from 2.0x as of end-June 2021, due to lower cash collection and more construction cost outflows for property delivery before the Chinese New Year. Sales collection may improve subsequently after end-2021, but there is uncertainty as to whether the improvement can be sustained, in view of the continued weak property sales. Manageable Near-Term Maturities: Fitch expects Times China to have sufficient cash at the onshore holdco level to repay the outstanding bonds of USD342 million maturing in April, and most of its onshore bond maturing or puttable of CNY2.7 billion in 2H22. Times China also has significant capital-market maturities in 2023 (CNY5.1 billion in offshore bonds and CNY6.9 billion in onshore bonds maturing or puttable). Limited Capital Market Access: Times China may need to rely mostly on its operational cash inflows to repay its capital market debt. On 27 January 2022, the company announced a share placement at HKD3.4 per share for 117.7 million shares, with proceeds of around HKD400 million. The proceeds are small compared with its near-term maturities. Sales Decline: Times China's contracted sales began to drop yoy in August 2021, similar to the industry trend. Its total 2021 sales fell by 5% to CNY95.6 billion, and January-February 2022 sales were down 20%. Apart from property sales, Times China's primary development business may also generate some cash inflow from refunds from local governments for the conversion of land parcels completed in previous years. High NCIs: Times China's NCI/total equity ratio was 52% at end-1H21 and NCI net claims/net property assets was 35%, which was high among Fitch-rated Chinese developers. Times China relies on capital contributions from minority shareholders - mostly developers - to finance expansion. This limits its need for debt funding, but creates potential cash leakage. Sustainable Business Profile: Fitch expects Times China's leverage (as defined by net debt/net property assets) to stay at 45%-50%. Fitch estimates that the company can sustain its scale as it has unsold land bank life of around three years, although Fitch expects fewer land acquisitions in 2022. Times China also has a stronger pipeline in urban redevelopment projects (URPs), and is less reliant on public auctions in new land acquisitions, leading to better profit margins than its peers. DERIVATION SUMMARY Times China's credit profile is no longer consistent with a 'BB-' rating due to continued limited access to the capital market, a shrinking liquidity buffer, and large capital-markets maturities in 2023. Its contracted sales are likely to decline in 2022, with a scale similar to other 'B+' rated peers such as China SCE Group Holdings Limited (B+/Stable). China SCE has lower refinancing risks than Times China, as it has remitted funds offshore for bonds due on 10 March, with no other offshore maturities in 2022. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: -- Total contracted sales of CNY85 billion-100 billion a year in 2022-2023 (2021: CNY96 billion); -- Cash collected as a percentage of consolidated sales at 70% 75% in 2021-2023 (2020: 75%); -- Land premium outflow of around 25%-30% of sale proceeds in 2021-2023 (1H21: 29%); -- Overall EBITDA margin, after land appreciation tax, at 18%-19% in 2021-2023 (2020: 18.6%). Key Recovery Rating Assumptions The liquidation estimate reflects Fitch's view of the value of balance-sheet assets that can be realised in a sale or liquidation process conducted during bankruptcy or insolvency proceedings and distributed to creditors. Advance rate of 80%, applied to accounts receivable. This treatment is in line with Fitch's recovery rating criteria. Advance rate of 14% applied to the book value of self-owned investment properties. The portfolio has an average rental yield of TSINGSHAN HOLDING: Gets Loans from Lenders to Meet Margin Calls --------------------------------------------------------------- South China Morning Post reports that Tsingshan Holding Group, the Chinese nickel company at the centre of a historic short squeeze, has secured a package of loans from local and international banks to help it meet a wave of margin calls, according to people familiar with the matter. The Post relates that Tsingshan Holding Group, which faces billions of dollars in potential losses on short positions in nickel futures, won credit promises from banks including JPMorgan Chase and China Construction Bank in meetings that ran into the predawn hours of Wednesday morning [March 6], the people said, asking not to be named since the matter is private. Some of the terms, such as how much extra collateral Tsingshan needs to pledge, are still under discussion, the people said. Chinese authorities directed Tsingshan's domestic banks to offer more credit lines to the company, two of the people said. A majority of these new loans will be used for margin calls on its existing positions on the London Metal Exchange (LME), the people said, the report relays. According to the report, the bank loans are expected to help Tsingshan address its immediate liquidity squeeze. With large nickel production facilities in Indonesia and China, coupled with surging prices and strong demand, the firm's owner, Xiang Guangda, told bankers at the meetings that he is confident his company can meet its obligations, according to the people. He is also reviewing his hedging strategy and is considering exiting the bets against nickel, one of the people said. The Post says the deals come after the price of nickel, the metal used to produce stainless steel and electric batteries, rocketed to above US$100,000 a tonne on March 8 before the LME suspended the market and cancelled all trades that took place during Asian hours. Nickel has been rising for weeks on fears of disruptions to supplies from Russia, the largest exporter of refined nickel. The rally intensified last week, with prices surging as much as 250 per cent in little more than 24 hours, as traders with short positions rushed to cover their bets. The Post says Xiang and his firm hold a position of about 100,000 tonnes of nickel on the LME, people familiar with the matter said. It could be larger when bets through intermediaries are taken into account. His mark-to-market losses would be in the billions of dollars even at US$48,063 a tonne, which is where the price now stands after it was halted and trades were cancelled. On March 7, CCBI Global Markets, one of Tsingshan's brokers, failed to pay hundreds of millions of dollars in margin calls on its nickel positions, the report relates. The LME refrained from putting it into default, giving it more time to pay. The broker was able to settle the margin calls on March 8 after several clients, including Tsingshan, got loans to cover their positions, one of the people said. Traders must deposit cash, known as margin, with their brokers on a regular basis to cover potential losses. Brokers in turn must hold margin at the clearing house, LME Clear. If the market moves against those positions, they receive a margin call for further funds – and if they fail to pay, they can be forced to close their position, the report notes. Tsingshan Holding Group Co., Ltd. manufactures and distributes stainless steel products. The Company produces stainless steel castings, steel bars, steel wires, steel plates, and other products. Tsingshan Holding Group exports its products to Southeast Asia, Europe, America, and other countries and regions. ========= I N D I A ========= AASTHA SPINTEX: Ind-Ra Assigns BB+ Long Term Issuer Rating ---------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Aastha Spintex Private Limited (ASPL) a Long-Term Issuer Rating of 'IND BB+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR275.50 mil. Term loan due on November 2024 assigned with IND BB+/Stable rating; -- INR230 mil. Fund-based limit assigned with IND BB+/Stable/IND A4+ rating; and -- INR35 mil. Non-fund-based limit assigned with IND A4+ rating. KEY RATING DRIVERS The ratings reflect ASPL's medium scale of operations as indicated by revenue of INR1,815.24 million in FY21 (FY20: INR1,927.26 million). The decline in revenue was due to closure of the ginning unit for 11 months during FY21 due to Covid-19, leading to lower production and sales. Till 8MFY22, ASPL booked revenue of INR1,549.89 million; it had an order book of INR93.19 million as of 24 December 2022. Ind-Ra expects the revenue to improve in FY22 due to full-year operations. The ratings also factor in ASPL's modest EBITDA margin of 10% in FY21 (FY20: 9.04%) with a return on capital employed of 10.3% (10.2%). In FY21, the EBITDA margin improved due to a decline in employee cost. In FY22, Ind-Ra expects the EBITDA margin to decline as indicated by year-to-date margin of 4.99%, due to an increase in raw material price. Liquidity Indicator - Stretched: ASPL's average maximum utilization of the fund-based limits was 83.58% and the non-fund-based limits was 61.71% during the 12 months ended November 2021 with an instance of overutilization of up to 15 days. The cash flow from operations increased to INR119.90 million in FY21 (FY20: INR35.43 million),due to favorable changes in working capital. Consequently, the free cash flow stood increased to INR106.07 million in FY21 (FY20: INR26.12 million), partially offset by capex of INR13.83 million (FY20: INR9.31 million). However, the net working capital cycle elongated to 89 days in FY21 (FY20: 72 days) due to an increase in the inventory holding period to 110 days (79 days). The cash and cash equivalents stood at INR170.87 million at FYE21 (FYE20: INR4.25 million). Furthermore, ASPL does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. It had availed of the Reserve Bank of India-prescribed moratorium over March-August 2020. However, the ratings are supported by ASPL's comfortable credit metrics as reflected by interest coverage (operating EBITDA/gross interest expenses) of 2.12x in FY21 (FY20: 2.05x) and net leverage (total adjusted net debt/operating EBITDAR) of 3.41x (3.88x). The improvement in the credit metrics was due to an increase in absolute EBITDA. However, Ind-Ra expects the credit metrics to deteriorate in the short term due to an increase in debt to fund capex. The company is setting up a windmill (likely to become operational from December 2022) and solar modules (likely to become operational from August 2022), which will be funded by a term loan of INR150 million and the remainder through promoter contribution. The ratings are also supported by the promoters' decade-long experience in the textile industry, leading to established relationships with its customers as well as suppliers. RATING SENSITIVITIES Positive: Timely completion of the ongoing capex resulting in an increase in the scale of operations, along with an improvement in the overall credit metrics and liquidity profile, all on a sustained basis, could lead to a positive rating action. Negative: A decline in the scale of operations, leading to deterioration in the overall credit metrics with the net leverage exceeding 5.0x and a further stretch in the liquidity position, could lead to a negative rating action. COMPANY PROFILE ASPL was set up in 2014 by members of the Patel and Sitapara families. The company manufactures cotton yarn used for knitting and weaving with bulk production of combed yarn of count 30. The manufacturing facility is located in Halvad, Morbi. ARCHIT ORGANOSYS: Ind-Ra Assigns BB- Issuer Rating, Outlook Stable ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has assigned Archit Organosys Limited (AOL) a Long-Term Issuer Rating of 'IND BB-'. The Outlook is Stable. The instrument-wise rating actions are: -- INR155 mil. Fund-based working capital limit assigned with IND BB-/Stable/ IND A4+ rating; -- INR47.5 mil. Non-fund-based limit assigned with IND A4+ rating; -- INR131.9 mil. Term loan due on March 2025 assigned with IND BB-/Stable rating; -- INR89.6 mil. Proposed term loan assigned with IND BB-/Stable rating; and -- INR60 mil. Proposed fund-based working capital limit assigned with IND BB-/Stable/ IND A4+ rating. KEY RATING DRIVERS The ratings reflect AOL's small scale of operations with revenue of INR945.1 million in FY21 (FY20: INR766.9 million; FY19: INR846.7 million) that grew 23.2% yoy, on account of a rise in realization prices due to an increase in demand of AOL's products in the pharma and agricultural industry. Ind-Ra expects the revenue to further improve in FY22, based on its revenue of INR985.7 million during April to November 2021. The ratings also reflect AOL's volatile EBITDA margins, due to the nature of its business, intense competition leading to low bargaining power, fluctuations in forex rates and the prices of the key inputs such as acetic acid, acetic anhydride, sulphur powder. The margins improved significantly to 11.7% in FY21 (FY20: 4.6%; FY19: negative 3.8%), owing to an increase in the realization prices of its chemical products. AOL has been mitigating the risk through forward contracts. The return on capital employed was moderate at 10.7% in FY21 (FY20: 0.1%; FY19: negative 8.2%). In FY22, Ind-Ra expects the growth in the EBITDA margins to normalize to a single digit, due to a marginal rise in raw material prices. Liquidity Indicator - Stretched: In FY21, AOL's net cash cycle was elongated at 54 days in FY21 (FY20: 52; FY19: 48), mainly due to an increase in debtor days to 97 (94; 62), owing to the increase in its turnover. The cash flow from operations was at INR84 million in FY21 (FY20: INR51.8 million; FY19: negative INR2.7 million), mainly on account of higher operating profits. Moreover, the free cash flow was INR49.5 million (INR36.8 million; negative INR13.4 million) in the same order, due to the capital expenditure of INR34.6 million (INR14.9 million). The cash and cash equivalents stood at INR38.1 million in FYE21 (FY20: INR25.2 million). AOL's average maximum utilization of the fund-based limits was around 72% of the sanctioned limits in the 12 months ended November 2021. For FY22, Ind-Ra expects a reduction in cash flow from operations due to a slight decline in its operating profit. In addition, the ratings factor in AOL being involved in a legal dispute with HDFC Bank ('IND AAA'/Stable) after the company failed to repay the bank liabilities worth INR14.7 million (inclusive of interest up to January 2013) on account of losses in derivative contracts. Also, AOL has been facing a production ban at its Naroda (Ahmadabad) unit since 2020, due to a continuing delay in renewing the pollution clearance certificate from the Gujarat Pollution Control Board (GPCB). Hence, the company is generating all its production and revenue from its Bhavnagar unit. The ratings also factor in AOL's moderate credit metrics with the interest coverage ratio (operating EBITDA/gross interest expense) of 3.4x in FY21 (FY20: 1.1x; FY19: negative0.9x) and net leverage (total adjusted net debt/operating EBITDAR) of 2.5x (8.7x; negative 14.6x). In FY21, the interest coverage and net leverage improved, on account of an increase in absolute EBITDA and a reduction in total debt to INR326.6 million (FY20: INR336.3 million), due to a decrease in working capital debt to INR95.9 million (INR143.0 million). The agency expects the overall credit metrics to remain at the same level in FY22, owing to a slight increase in the operating profit along with the scheduled repayment of term loans. Also, AOL plans to incur a capex of INR250 million in FY22 for expanding its Bhavnagar unit. As per the management, the company has funded the capex with INR80 million from internal cash accruals and a bank loan of INR150 million where machinery term loan would be around INR60 million and working capital term loan of INR90 million. Moreover, the company has applied for a loan which is under process. The ratings, however, are supported by the promoters' over three decades of experience in the chemical industry. This provides them an understanding of the dynamics of the market, and enables them to establish strong relationships with suppliers and customers. RATING SENSITIVITIES Negative: Any deterioration in the scale of operations and the profitability and/or a deterioration in the liquidity and credit metrics, all on a sustained basis, will be negative for the ratings. Positive: A further improvement in the revenue with the successful completion of the ongoing capex while maintaining the profitability and liquidity profile, will be positive for the ratings. COMPANY PROFILE Incorporated in 1989, AOL, erstwhile Shri Chlochem Ltd, is a BSE-listed company situated in Ahmedabad, Gujarat. The company manufactures and trades organic chemicals, pigments, adhesives and sealants and specialty derivatives such as monochloroacetic acid, sodium chloroacetate that are used in the synthesis of various agricultural chemicals, cosmetic surfactants, oil drilling chemicals, and plastic additives, among others. The company has two manufacturing plants, one each in Naroda and Bhavnagar, with a combined installed capacity of 9,600MTPA. BALLARPUR INDUSTRIES: NCLAT Stays Liquidation Order --------------------------------------------------- The New Indian Express reports that the National Company Law Appellate Tribunal (NCLAT) has stayed liquidation of Ballarpur Industries Ltd (BILT), and ordered the committee of creditors (CoC) to reconsider the revised resolution plan submitted by Finquest Financial Solutions within six weeks. The Mumbai bench of the National Company Law Tribunal (NCLT) had on Jan. 25, 2022, ordered liquidation of Gautam Thapar-owned BILT after the CoC rejected the only resolution plan submitted by Finquest Financial Solution, one of the financial creditors, the report relates. Staying the liquidation order, the appellate tribunal said that it is of the view that ends of justice be served in issuing direction to the CoC to reconsider the Revised Resolution Plan within a period of six weeks from today, according to the report. "It goes without saying that resolution professional should convene a meeting of CoC for reconsideration of the revised plan forthwith," said the bench of Justice Alok Bhushan. Finquest Financial, which had appealed against the liquidation order, argued before the NCLAT that while the order of liquidation was made on Jan. 25, 2022, the order was uploaded on NCLT website only on Feb. 22, the report notes. In the meanwhile, the resolution applicant had submitted its revised plan on Feb. 7. Ballarpur Industries Limited (BILT) is engaged primarily in the business of manufacturing of writing and printing (W&P) paper, pulp and paper products. The Company operates through two business blocks: one under BILT and one under its step-down subsidiary Bilt Paper. Under the standalone entity, BILT, the direct assets include Specialty paper business operating from the Shree Gopal facility in Haryana; Rayon Grade Pulp business operating from Kamalapuram in Andhra Pradesh, and Tissue paper business operated through its subsidiary, Premier Tissues (India) Limited. The Company's other block of businesses comes under Bilt Paper BV, which focuses on the woodfree printing and writing paper, coated and uncoated. The Company's manufactured products are sold primarily within India. Its writing and printing paper manufacturing operations has over four production units across India, including Ballarpur (Maharashtra), Bhigwan (Maharashtra), Sewa (Odisha) and Ashti (Maharashtra). BATHSHA MARINE: CRISIL Assigns B+ Rating to INR0.50cr Loans ----------------------------------------------------------- CRISIL Ratings has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of Bathsha Marine Exports Private Limited (BMEPL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Foreign Bill Purchase 5 CRISIL A4 (Assigned) Packing Credit 4.5 CRISIL A4 (Assigned) Proposed Fund- Based Bank Limits 0.36 CRISIL B+/Stable (Assigned) Term Loan 0.14 CRISIL B+/Stable (Assigned) The rating reflects BMEPL's modest scale of operation, working capital intensive operations, and exposure to risks inherent in the seafood industry. These weaknesses are partially offset by its extensive industry experience of the promoters. Key Rating Drivers & Detailed Description Weakness * Modest scale of operation: BMEPL's business profile is constrained by its scale of operations in the intensely competitive Marine products industry. BMEPLs scale of operations will continue limit its operating flexibility. * Working capital intensive operations: Gross current assets were at 140-450 days over the three fiscals ended March 31, 2021. Its intensive working capital management is reflected in its gross current assets (GCA) of 450 days as on March 31, 2021, as against over 88 days GCAs of some of its peers. Its's large working capital requirements arise from its high debtor and inventory levels. It is required to extend long credit period. Furthermore, due to its business need, it holds large work in process & inventory. * Exposure to risks inherent in the seafood industry: Shrimp prices depend on the availability of shrimp during a particular period, and the company's margins are exposed to volatility in the prices of shrimp. The seafood export segment is marked by stringent regulations and quality requirements. Many of the export destinations implement regulations from time to time (including anti-dumping duty, food safety regulations, and quality requirements) that need to be met. Adverse regulatory changes, such as the levy of anti-dumping duties by importing countries, can have an adverse impact on the profitability of the players. Strength * Extensive industry experience of the promoters: The promoters have an experience of over 20 years in marine products industry. This has given them an understanding of the dynamics of the market and enabled them to establish relationships with suppliers and customers. Liquidity: Stretched Bank limit utilization is moderate at around 60 percent for the past twelve months ended December 2021. Cash accruals are expected to be over INR0.60 crore which are sufficient against term debt obligation of INR0.1-0.30 crore over the medium term. Current ratio is healthy at 1.69 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. Outlook: Stable CRISIL Ratings believe BMEPL will continue to benefit from the extensive experience of its promoter, and established relationships with clients. Rating Sensitivity Factors Upward Factor * Sustained improvement in scale of operation by 20% and sustenance of operating margin, leading to higher cash accruals * Improvement in working capital cycle Downward factor * Decline in net cash accruals below INR0.3 crore on account of decline in revenue or operating profits. * Large debt-funded capital expenditure weakens capital structure BMEPL was incorporated in 1997. It is engaged in processing and exporting of seafood products such as shrimp, cuttlefish, Indian mackerel, yellowfin tuna, etc. Also provides storage facility of for seafood. The company has processing unit located in Aroor- Kochi- Kerala and owned by Mr. Akbar Bathsha, Mrs. Sunitha Bathsha and Mr. Yazar Bathsha. BHIMA AND BROTHER: Ind-Ra Cuts Long Term Issuer Rating to 'BB' -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Bhima and Brother Bullion Private Limited's Long-Term Issuer Rating to 'IND BB (ISSUER NOT COOPERATING)' from 'IND BBB (ISSUER NOT COOPERATING).' The instrument-wise rating action is: -- INR1.320 bil. Fund-based working capital limits downgraded with IND BB (ISSUER NOT COOPERATING)/ IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer not cooperating; 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. As per the circular, any issuer with an investment-grade rating remaining non-cooperative with a rating agency for more than six months should be downgraded to a sub-investment grade rating. The current outstanding rating of 'IND BB (ISSUER NOT COOPERATING)' may not reflect Bhima and Brother's credit strength as the company has been non-cooperative with the agency since August 2021. Therefore, investors and other users are advised to take appropriate caution while using these ratings. COMPANY PROFILE Bhima and Brother Bullion began its operations as a partnership firm in 1925 and was converted into a private limited company in 2012. The company is engaged in the retail of gold and diamond jewelry, gold bullions and silver articles. BOLA RAGHAVENDRA: CRISIL Lowers Long/Short Term Rating to D ----------------------------------------------------------- CRISIL Ratings is downgrading its ratings on the bank facilities of Bola Raghavendra Kamath and Sons (BRK) to 'CRISIL D/CRISIL D' from 'CRISIL BB-/Stable/CRISIL A4+'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Rating - CRISIL D (Downgraded from 'CRISIL BB-/Stable') Short Term Rating - CRISIL D (Downgraded from 'CRISIL A4+') The downgrade reflects the company's overdues on the packing credit facility for more than 30 days due to poor liquidity, and consequently the account has been classified under SMA-1 by the bank. The ratings also reflect the company's below average financial risk profile and volatility in cashew prices. These weaknesses are partially offset by the extensive experience of the partners. Key Rating Drivers & Detailed Description Weaknesses: * Account remaining Overdrawn: Working capital limits has overdues which has remained pending for more than 30 days, since January 15th, 2022 due to which the account is classified under the SMA-1 account due to weak liquidity. * Susceptibility to volatility in cashew prices: BRKS's operating margin is constrained by the commodity nature of its products. The low margin limits the firm's ability to absorb unanticipated adverse price movements. Presence in a segment with limited value addition and negligible differentiation in products of different players also constrains the margin. * Below average financial profile: BRKS has below average financial profile marked by gearing of 5.79 times and Total Outside Liabilities to Tangible Networth (TOL/TNW) of 6.05 times for the year ending on 31st March 2021. Debt protection metrics are average with interest coverage ratios at 2.2 times for fiscal 2021. Strengths: * Established market position supported by extensive industry experience of the partners: The partners have an extensive experience of more than six decades in Cashew industry. This has given them an understanding of the dynamics of the market, and enabled them to establish relationships with suppliers and customers. Liquidity: Poor Poor liquidity resulting in packing credit facility remaining overdrawn by more than 30 days. Operations are working capital intensive, leading to dependence on external debt for meeting working capital requirement. Rating Sensitivity factors Upward factors * Track record of timely debt servicing for at least 90 days * Efficient working capital management leading to moderation in bank limit utilization Established in 1958, BRKS is engaged in processing and trading of cashew nuts, raw cashew nuts, cashew nut shell liquid (CNSL), coffee beans etc. The firm is based in Kukkundoor (Karnataka) with an installed capacity of 30000 kg per day of cashew. BRKS is owned & managed by Mr. Bola Raghavendra Kamath and family. BOY SCOUTS: Justice Law, et al. Represent Unsecured Claimants ------------------------------------------------------------- Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure, the law firms of Justice Law Collaborative, Wagstaff Law Firm, and Jacobs & Crumplar, P.A., submitted a verified statement to disclose that they are representing the unsecured claimants in the Chapter 11 cases of Boy Scouts of America and Delaware BSA, LLC. The names and contact details of the Clients were redacted from publicly available filings. The Claim Numbers are: 60218 76772 76750 72762 118797 72729 55081 59993 41321 56969 76867 118800 The Clients each hold general unsecured claims against BSA, certain non-debtor Local Councils, or Chartered Organizations arising from childhood sexual abuse at the time the Clients were Scouts with the BSA and the applicable Local Councils and Chartered Organizations. The Firm can be reached at: JACOBS & CRUMPLAR, P.A. Raeann Warner, Esq. Thomas C. Crumplar, Esq. 750 Shipyard Drive, Suite 200 Wilmington, DE 19801 Tel: (302) 656-5445 Fax: (302) 656-5875 E-mail: Raeann@jcdelaw.com Thomas@jcdelaw.com JUSTICE LAW COLLABORATIVE Kimberly A. Dougherty, Esq. 19 Belmont Street South Easton, MA 02375 Tel: (508) 230-2700 Fax: (888) 875-2889 E-mail: kim@justicelc.com - and - WAGSTAFF LAW FIRM Sommer D. Luther, Esq. Albert W. Northrup, Esq. 940 Lincoln Avenue Denver, CO 80203 Tel: (303) 376-6360 E-mail: sluther@wagstafflawfirm.com anorthrup@wagstafflawfirm.com A copy of the Rule 2019 filing is available at https://bit.ly/34zyi8B at no extra charge. About Boy Scouts of America The Boy Scouts of America -- https://www.scouting.org/ -- is a federally chartered non-profit corporation under title 36 of the United States Code. Founded in 1910 and chartered by an act of Congress in 1916, the BSA's mission is to train youth in responsible citizenship, character development, and self-reliance through participation in a wide range of outdoor activities, educational programs, and, at older age levels, career-oriented programs in partnership with community organizations. Its national headquarters is located in Irving, Texas. The Boy Scouts of America and affiliate Delaware BSA, LLC, sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-10343) on Feb. 18, 2020, to deal with sexual abuse claims. Boy Scouts of America was estimated to have $1 billion to $10 billion in assets and at least $500 million in liabilities as of the bankruptcy filing. The Debtors have tapped Sidley Austin LLP as their bankruptcy counsel, Morris, Nichols, Arsht & Tunnell LLP as Delaware counsel, and Alvarez & Marsal North America, LLC, as financial advisor. Omni Agent Solutions is the claims agent. The U.S. Trustee for Region 3 appointed a tort claimants' committee and an unsecured creditors' committee on March 5, 2020. The tort claimants' committee is represented by Pachulski Stang Ziehl & Jones, LLP, while the unsecured creditors' committee is represented by Kramer Levin Naftalis & Frankel, LLP. BR DESIGNS: CARE Moves D Debt Ratings to Not Cooperating -------------------------------------------------------- CARE Ratings has migrated the rating on bank facilities of BR Designs Private Limited (BRDPL) to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 9.04 CARE D; ISSUER NOT COOPERATING Facilities Rating moved to ISSUER NOT COOPERATING category Long Term/ 16.67 CARE D/CARE D; ISSUER NOT Short Term COOPERATING; Rating moved to ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE Ratings Ltd. has been seeking information from BRDPL to monitor the ratings vide e-mail communications/letters dated November 18, 2021, December 2, 2021, March 1, 2022, March 2, 2022 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 Ratings Ltd. has reviewed the ratings on the basis of the best available information which however, in CARE Rating Limited's opinion is not sufficient to arrive at a fair rating. The rating on BRDPL's bank facilities will now be denoted as CARE D/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(s). Detailed description of the key rating drivers At the time of last rating on June 16, 2021, the following were the rating strengths and weaknesses. Key Rating Weaknesses * Delays in debt repayment: BRDPL has exhibited delays in servicing Cash Credit account interest for more than 30 days due to poor liquidity position of the entity. The account is classified as NPA. BRDPL was originally established as a firm in 1991 and subsequently changed its constitution to a private limited company under its current name from May 2013. BRDPL is promoted by Mr. Dilip Kumar T Shah and his wife Mrs. Bharti D Shah. It is engaged in the designing and manufacturing of variety of diamond, gold, silver, gemstone, and jadau jewellery using dazzling diamonds to exquisite emeralds, rubies, and sapphires. BRDPL manufactures its jewellery using state-of-the-art technology, which it then sells pan-India as well as to few overseas nations. Further BRDPL has also won many national jewellery awards for their handcrafted luxury jewellery pieces and has verticals in retail, B2B and e-commerce segments. BRDPL designs and manufactures exclusive collections using Forevermark Diamonds- a DeBeers Brand and supplies to Asia Pacific Region (APAC). It operates one retail showroom in Surat and two owned outlets at Taj Gateway and Airport at Surat. Status of non-cooperation with previous CRA: ICRA has suspended ratings assigned to the bank facilities of BRDPL vide Press Release dated May 28, 2014 on account of non co-operation by BRDPL with ICRA's efforts to undertake a review of the ratings outstanding. COTTON BLOSSOM: Ind-Ra Keeps 'D' Issuer Rating in Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Cotton Blossom (India) Private Limited's (CBIPL) Long-Term Issuer Rating of 'IND D (ISSUER NOT COOPERATING)' in the non-cooperating category and has simultaneously withdrawn it. The instrument-wise rating actions are: -- INR77.9 mil. Long-term loans (Long-term)* due on June 2024 maintained in non-cooperating category and withdrawn; -- NR900 mil. Fund-based facilities (Long-term/Short-term)* maintained in non-cooperating category and withdrawn; and -- INR100 mil. Non-fund-based facilities (Short-term)* maintained in non-cooperating category and withdrawn. *Maintained at 'IND D (ISSUER NOT COOPERATING)' before being withdrawn. KEY RATING DRIVERS Ind-Ra has maintained the ratings in the non-cooperating category because the issuer did not participate in the rating exercise, despite requests by the agency and has not provided information pertaining to full-year financial performance for FY21, sanctioned bank facilities and utilization, business plan and projections for the next three years, information on corporate governance, and management certificate. Ind-Ra is no longer required to maintain the ratings, as the agency has received no-objection certificates from the lenders. 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. COMPANY PROFILE CBIPL was established as a partnership firm in 1999 and was reconstituted as a private limited company in 2004. The company manufactures garments and exports to markets such as Germany, the US, the UK and Dubai. CBIPL as backward integrated spinning, knitting, dyeing, printing and embroidery divisions. DAS PROCESSORS: CARE Lowers Rating on INR4.00cr LT Loan to B ------------------------------------------------------------ CARE Ratings has revised the ratings on certain bank facilities of Das Processors (DP), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 4.00 CARE B; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category and Revised from CARE B+; Stable Short Term Bank 3.00 CARE A4; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated January 25, 2021, placed the rating(s) of DP under the 'issuer non-cooperating' category as DP 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. DP continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated December 11, 2021, February 28, 2022 and March 2, 2022. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'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 DP have been revised on account of non-availability of requisite information. Das Processors (DP) was set up as a partnership firm in 2012 by Das family of Rajnandgaon, Chhattisgarh. The firm undertakes civil construction projects, primarily building and road construction, for state and local government agencies in Chhattisgarh. DP secures all its contracts through tender driven open bidding process and has an order book position of INR38.99 crore as on July 31, 2018 which is 2.03x of FY18 revenue. Mr. Dushyant Das (Partner) is having more than two decades of experience in the construction industry. He looks after the day to day operations of the firm and is supported by a team of professionals. GH REDDY: CRISIL Withdraws B Rating on INR13.5cr LT Loan -------------------------------------------------------- CRISIL Ratings has withdrawn its ratings on the bank facilities of GH Reddy And Associates (Construction) Private Limited on the request of the company and receipt of a no objection certificate from its bank. The rating action is in line with CRISIL Ratings' policy on withdrawal of its ratings on bank loans. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 11 CRISIL A4/Issuer Not Cooperating (Withdrawn) Overdraft Facility 0.5 CRISIL A4/Issuer Not Cooperating (Withdrawn) Proposed Long Term 13.5 CRISIL B/Stable/Issuer Not Bank Loan Facility Cooperating (Withdrawn) CRISIL Ratings has been consistently following up with GH Reddy for obtaining information through letters and emails dated January 11, 2022 and January 15, 2022, 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 GH Reddy. This restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on GH Reddy is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the rating on bank facilities of GH Reddy continues to be 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating'. GH Reddy was set up as a partnership firm between Mr A Murali Krishna Reddy, Ms Indira Priyadarshini, and their families in 1981, and reconstituted as a private limited company in 2005. The Hyderabad-based company undertakes irrigation projects, including construction of dams and canals. GOLD PLUS: Ind-Ra Keeps 'BB+' LT Issuer Rating in Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Gold Plus Glass Industry'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: -- INR4,114.1 bil. Term loan* due on March 2022 maintained in non-cooperating category and withdrawn; -- INR811.4 mil. Non-convertible debentures* INE920Q07014 issued on December 22, 2016 with coupon rate 9.65% due on March 2024 maintained in non-cooperating category and withdrawn; -- INR540.9 mil. Fund-based working capital limits# maintained in non-cooperating category and withdrawn; and -- INR345 mil. Non-fund-based working capital limits# maintained in non-cooperating category and withdrawn. * Maintained at 'IND BB+ (ISSUER NOT COOPERATING)' before being withdrawn # Maintained at 'IND BB+ (ISSUER NOT COOPERATING)'/'IND A4+ (ISSUER NOT COOPERATING)' before being withdrawn KEY RATING DRIVERS The ratings have been maintained in the non-cooperating category because the issuer did participate in the rating exercise, despite requests by the agency. Ind-Ra is no longer required to maintain the ratings, as the agency has received a no objection certificate from the lenders. This is consistent with the Securities and Exchange Board of India's circular dated March 31, 2017 for credit rating agencies. COMPANY PROFILE Gold Plus Glass Industry, incorporated in 2009, produces float, mirror reflective, frosted, toughened, insulated and laminated glasses for automotive, architectural and industrial applications. GPR INFRA: Ind-Ra Keeps 'D' LT Issuer Rating in Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained GPR INFRA's Long-Term Issuer Rating of 'IND D (ISSUER NOT COOPERATING)' in the non-cooperating category and has simultaneously withdrawn it. The instrument-wise rating actions are: -- INR90 mil. Fund-based working capital limit (Long term/short term)* maintained in non-cooperating category and withdrawn; and -- INR300 mil. Non-fund-based working capital limits (short term)* maintained in non-cooperating category and withdrawn. * Maintained at 'IND D (ISSUER NOT COOPERATING)' before being withdrawn KEY RATING DRIVERS The ratings have been maintained in the non-cooperating category before being withdrawn because GPR did not participate in the rating exercise despite requests by the agency and has not provided information pertaining to full-year financial performance for FY21, sanctioned bank facilities and utilization, business plan and projections for the next three years, information on corporate governance, and management certificate. Ind-Ra is no longer required to maintain the ratings, as the agency has received no-objection certificates from the lenders. This is consistent with the Securities and Exchange Board of India's circular dated March 31, 2017 for credit rating agencies. COMPANY PROFILE Established in December 2013, GPR is an engineering, procurement and construction firm. GUJARAT CONSTRUCTION: CRISIL Lowers Long/Short Term Rating to D --------------------------------------------------------------- CRISIL Ratings has downgraded its ratings on the bank facilities of Gujarat Construction Co (GCC) to 'CRISIL D/CRISIL D' from 'CRISIL BB/Stable/CRISIL A4+'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Rating - CRISIL D (Downgraded from 'CRISIL BB/Stable') Short Term Rating - CRISIL D (Downgraded from 'CRISIL A4+') The ratings reflect the delays by GCC in meeting its term loan obligation and overutilisation of its cash credit facility. The firm is susceptible to risks related to tender-based business and modest scale of operations. However, it benefits from the extensive experience of its partners in the civil construction industry and its moderate financial risk profile. Analytical Approach CRISIL Ratings has considered the standalone business and financial risk profiles of GCC. Key Rating Drivers & Detailed Description Weaknesses * Delays in debt servicing: The firm delayed servicing of its term loan till February 2022. Also, its bank limit was overutilised during the 12 months through December 2021 because of poor liquidity. * Susceptibility to risks inherent in tender-based business: Revenue and profitability depend entirely on the ability to win tenders. Also, intense competition necessitates aggressive bidding to win contracts. Moreover, given the cyclicality inherent in the construction industry, the ability to maintain profitability through operating efficiency becomes critical. * Modest scale of operations: Revenue remained modest at INR85 crore in fiscal 2021 on account of tenders-based operations. Revenue is estimated at INR38 crore during the nine months of fiscal 2022. Intense competition also limits scale and profitability. Strengths: * Extensive experience of the partners: Presence of more than two decades in the civil construction industry has enabled the partners to understand market dynamics and establish healthy relationships with suppliers and customers. * Moderate financial risk profile: Gearing and total outside liabilities to adjusted networth ratio were moderate at 0.98 time and 2.80 times, respectively, as on March 31, 2021, and are expected at similar levels over the medium term. Liquidity: Poor Cash credit limit was overutilised due to monthly interest. Cash accrual is expected to remain insufficient against term debt obligation. Current ratio remained moderate at 1.55 times as on March 31, 2021. Rating Sensitivity factors Upward factors * Track record of timely debt servicing for at least over 90 days * Significant improvement in operating performance, with adequate cash accrual and enhancement in liquidity Established in 1992 as a partnership firm by Mr Janek Patel, Mr Navin Patel and Mr Jay Patel, Mehsana (Gujarat)-based GCC constructs water supply pipelines and drainage systems and undertakes other environmental projects. GURU RAGHAVENDRA: Ind-Ra Lowers Long Term Issuer Rating to 'D' -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Guru Raghavendra Infrastructures' (GRI) Long-Term Issuer Rating to 'IND D' from 'IND BB+ (ISSUER NOT COOPERATING)'. The instrument-wise rating actions are: -- INR100 mil. (increased from INR50 mil.) Fund-based working capital limit(Long term/ Short term) downgraded with IND D rating; and -- INR250 mil. (reduced from INR300 mil.) Non-fund-based working capital limit (Short term) downgraded with IND D rating. KEY RATING DRIVERS The downgrade reflects GRI's delays in debt servicing during the three months ended December 2021. RATING SENSITIVITIES Positive: Timely debt servicing for at least three consecutive months could result in a rating upgrade. COMPANY PROFILE GRI was established as a partnership concern in Hyderabad, Telangana on 25 June 2006. The firm is promoted by Venkata Krishna Reddy Daggumati along with his wife, Sreelatha Daggumati. The firm 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. GRI also operates a fuel station on retail basis. HIM CHEM: CRISIL Raises Rating on INR5cr Term Loan to B+ -------------------------------------------------------- CRISIL Ratings has upgraded its rating on the long-term bank loan facilities of Him Chem Limited (HCL) to 'CRISIL B+/Stable' from 'CRISIL B/Stable' and reaffirmed its 'CRISIL A4' rating on the short-term facility. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 1 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') Letter of Credit 3 CRISIL A4 (Reaffirmed) Proposed Fund- 2 CRISIL B+/Stable (Upgraded Based Bank Limits from 'CRISIL B/Stable') Term Loan 5 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') The upgrade takes into account the improved business risk profile of HCL as indicated by revenue growth of 10% to INR50.84 crore in fiscal 2021 and expected increase of 26% in fiscal 2022. Operating margin improved to 6.77% in fiscal 2021 from 6.18% in fiscal 2020 and is expected around 6% over the medium term. The revenue, however, remains modest. While the capital structure remained moderate, debt protection metrics stayed weak with interest coverage at 2.37 times and net cash accrual to total debt ratio at 0.01 time in fiscal 2021. Liquidity is supported by low bank limit utilization and cushion of 1.37 times between cash accrual and debt obligation. The ratings continue to reflect HCL's modest scale of operations and exposure to intense competition. These weaknesses are partially offset by the extensive experience of the promoters in the yarn industry and the company's moderate capital structure. Analytical Approach Unsecured loan of INR90.82 lakh as on March 31, 2021, is treated as debt as the loan is extended on need basis and will be withdrawn subsequently. Key Rating Drivers & Detailed Description Weaknesses: * Modest scale of operations: Despite improvement, the scale of operations remains modest, as indicated by revenue of INR50.84 crore in fiscal 2021, up from INR46.2 crore in fiscal 2020. The company has booked revenue of INR53 crore till January 2022 this fiscal. * Exposure to intense competition: Intense competition in the textile industry, especially from unorganised players, restricts bargaining power with suppliers and customers. Moreover, given the volatility in cotton prices, large raw material inventory renders HCL vulnerable to any adverse price movement. Strengths: * Extensive experience of the promoters: The promoters' experience of over 40 years and their in-depth understanding of the industry should support the business. Need-based funding support from the promoters is expected to continue. * Moderate capital structure: The capital structure is supported by adequate networth of INR19.95 crore, and healthy gearing of 0.39 time and total outside liabilities to tangible networth ratio of 0.77 time as on March 31, 2021. Liquidity: Poor Cash accrual is expected at INR2.4 crore in fiscal 2022 against debt obligation of INR1.8 crore. Cash credit facility of INR1 crore was utilised 35% on average over the 12 months through December 2021. Proposed enhancement in the bank limit to INR1.5 crore will support liquidity. Current ratio was moderate at 1.09 times as on March 31, 2021. Outlook: Stable CRISIL Ratings believes HCL will continue to benefit from the extensive experience of its promoters. Rating Sensitivity Factors Upward factors: * Sustained revenue growth of over 25% along with stable operating margin * Efficient working capital management leading to gross current assets below 75 days Downward factors: Decline in operating margin below 5% resulting in low cash accrual Further stretch in working capital cycle above 100 days leading to stretch in liquidity Incorporated in September 1975 and promoted by Mr Manish Negi, Mr Harish Chander and Mr Sham Sunder, HCL manufactures dope dyeing yarn and knitted cloth. It has manufacturing plants at Solan in Himachal Pradesh and Ludhiana in Punjab, with combined installed capacity of 10,000 tonne per annum. HOME ZONE: CRISIL Withdraws B- Long Term Rating ----------------------------------------------- Due to inadequate information, CRISIL Ratings, in line with SEBI guidelines, had migrated the rating of Home Zone Stainless Private Limited (HZMPL) to 'CRISIL B-/Stable/CRISIL A4/Issuer not cooperating'. CRISIL Ratings has withdrawn its rating on bank facility of HZMPL following a request from the company and on receipt of a 'no dues certificate' from the banker. Consequently, CRISIL Ratings is migrating the ratings on bank facilities of HZMPL from 'CRISIL B-/Stable/CRISIL A4/Issuer Not Cooperating to 'CRISIL B-/Stable/CRISIL A4'. The rating action is in line with CRISIL Ratings' policy on withdrawal of bank loan ratings. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Rating - CRISIL B-/Stable (Migrated from 'CRISIL B-/Stable ISSUER NOT COOPERATING; Rating Withdrawn) Short Term Rating - CRISIL A4 (Migrated from 'CRISIL A4 ISSUER NOT COOPERATING; Rating Withdrawn) HZMPL, set up in June 2012, processes coils, and mainly caters to utensil manufacturers and fabricators. The company, which commenced operations in January 2013, has been promoted by Mr Ramesh Agrawal and his son, Mr Jitendra Agrawal. JAI GANESH: Ind-Ra Lowers Long Term Issuer Rating to 'BB' --------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Jai Ganesh Ispat and Ferro Alloys Pvt Ltd.'s Long-Term Issuer Rating to 'IND BB (ISSUER NOT COOPERATING)' from 'IND BBB (ISSUER NOT COOPERATING).' The instrument-wise rating action is: -- INR270 mil. Fund-based working capital limits downgraded with IND BB (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer not cooperating; 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. As per the circular, any issuer with an investment-grade rating remaining non-cooperative with a rating agency for more than six months should be downgraded to a sub-investment grade rating. The current outstanding rating of 'IND BB (ISSUER NOT COOPERATING)' may not reflect Jai Ganesh Ispat' credit strength as the company has been non-cooperative with the agency since August 2021. Therefore, investors and other users are advised to take appropriate caution while using these ratings. COMPANY PROFILE Jai Ganesh Ispat and Ferro Alloys was established in 2004 by its promoter-directors, Siddharth Goyal and Sonia Goyal, in Goa. The company is an authorized distributor of JSW Steel Limited's (IND AA/Stable) products in Goa. The core products comprise galvalume roofing sheets, hot rolled plates, cold rolled close annealed sheets, galvanized sheets, thermo -mechanically treated bars, and structural steels among others. It also trades in steel products of other suppliers on a small scale. JORABAT SHILLONG: Ind-Ra Affirms 'D' Non-Convertible Debts Rating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed the ratings of Jorabat Shillong Expressway Limited's (JSEL) senior and subordinated non-convertible debentures (NCDs) at 'IND D'. The detailed rating actions are: -- INR6.412 bil. Senior NCDs* affirmed with IND D rating; and -- INR2,421.6 bil. Subordinated NCDs* affirmed with IND D rating. * Details in annexure KEY RATING DRIVERS The affirmation reflects continued non-servicing of debt by JSEL as confirmed by the debenture trustee. JSEL received 12 annuities until January 31, 2022 from the National Highway Authority of India (NHAI, 'IND AAA'/Stable) in a timely manner. Although there was a deduction of 3% in the 11th annuity, but the 12th annuity was received in full. Of the gross value of INR725.1 million of 11th annuity, the approved amount was INR703.5 million and JSEL received INR694.2 million on July 28, 2021, and INR710.6 million adjusted for statutory taxes towards the 12th annuity on January 28, 2022. Management has confirmed a debt service reserve balance of INR600 million and free cash balance of INR860 million as on January 31, 2022. Furthermore, the project has INR6,660 million in the form of other reserves and investments in mutual funds, which includes encumbered cash. JSEL has been classified under the 'Amber' category according to the National Company Law Appellate Tribunal order dated February 12, 2019, which defines 'Amber Entities as Domestic Group Entities which are not able to meet all their obligations (financial and operational), but can meet only operational payment obligations and payment obligations to senior secured financial creditors'. Ind-Ra continues to seek clarity on the resolution of Infrastructure Leasing & Financial Services ('IND D') and its group companies (including JSEL) in accordance with the National Company Law Appellate Tribunal orders. RATING SENSITIVITIES Positive: Timely debt servicing for three consecutive months will result in an upgrade. ESG ISSUES ESG Factors Minimally Relevant to Rating: Unless otherwise disclosed in this section, the ESG issues are credit neutral or have only a minimal credit impact on JSEL either due to their nature or the way in which they are being managed by the entity and sponsor. For more information on Ind-Ra's ESG Relevance Disclosures, please click here. COMPANY PROFILE JSEL is a special purpose vehicle that was incorporated to implement a lane expansion project under the build-operate-transfer annuity model. JSEL has a 20-year concession (expiring in January 2031) from the National Highways Authority of India to design, construct, develop, finance, operate and maintain a 61.8km stretch between Jorabat (Assam) and Barapani (Meghalaya) on National Highway 40. KARSHANBHAI GANGARAM: CRISIL Assigns B+ Rating to INR3cr Loan ------------------------------------------------------------- CRISIL Ratings has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of Karshanbhai Gangaram Parmar (KGP). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Bank 12 CRISIL A4 (Assigned) Guarantee Proposed Cash Credit Limit 3 CRISIL B+/Stable (Assigned) The ratings reflect the firm's susceptibility to tender-based business and modest scale of operations. These weaknesses are partially offset by the extensive experience of the partners in the construction industry and healthy debt protection metrics. Analytical Approach Unsecured loans (INR3.16 Cr as on March 31, 2021) extended by the promoters and their family members have been treated as neither debt nor equity because these loans may remain in the business over the medium term. Key Rating Drivers & Detailed Description Weaknesses: * Susceptibility to tender-based operations: Revenue and profitability depend entirely on the ability to win tenders. Also, entities in this segment face intense competition, thus requiring them to bid aggressively to procure contracts, which restricts the operating margin to a moderate level. Also, given the cyclicality inherent in the construction industry, the ability to maintain the profitability margin through operating efficiency becomes critical. * Modest scale of operations: The business risk profile of KGP is constrained by its modest scale in the intensely competitive civil construction industry. The small scale will continue limit the operating flexibility. Total revenue was modest at INR4.5 crore in fiscal 2021 but is expected to improve in the near term as a result of increased orders and their faster execution. As a result of COVID 19, operations were impacted by lockdown and the revenue reduced by 21% in FY 21. Strengths: * Extensive experience of the partners: The 25-year-long experience of the partners, their strong understanding of the market dynamics and healthy relationships with suppliers and customers will continue to support the business risk profile. * Healthy debt protection metrics: Debt protection metrics have been comfortable despite leverage because of moderately healthy profitability. Interest coverage and net cash accrual to total debt ratios stood at 3.19 times and 0.35 time, respectively, in fiscal 2021. Gearing was 0.20 time as on March 31, 2021. The metrics are expected to remain stable over the medium term. Liquidity: Stretched * Bank limit was utilised at 65.31% on average over the 12 months through January 2022. Cash accrual, expected at INR1.17 crore per annum, will sufficiently cover yearly debt obligation of INR11.8 lakh over the medium term. Current ratio was healthy at 4.28 times and cash and bank balance was moderate at INR11.8 crore as on March 31, 2021. Liquidity is further supported by equity and unsecured loans from the partners. Low gearing and moderate networth provide the financial cushion to withstand any adverse conditions or downturns in the business. Outlook: Stable KGP will continue to benefit from the partners' extensive experience and healthy relationships with clients. Rating Sensitivity factors Upward factors * Steady increase in revenue and stable operating margin leading to higher cash accrual * Efficient working capital management, with gross current assets improving to 300 days Downward factors * Decline in operating profitability * Large, debt-funded capital expenditure weakening the financial risk profile, with interest coverage ratio of less than 2 times KGP, established in November 2005 as a partnership firm, is engaged in the construction of water management works, such as pipeline works, water treatment services, water tanks and drinking water supply plants. Mr Anilkumar K Parmar and Mr Harikrishna K Parmar are partners in the firm. KGP is a an 'AA' government contractor. It undertakes construction work for the state and central governments through a bidding process. KONER FOOD: CARE Lowers Rating on INR8.90cr LT Loan to B- --------------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of Koner Food Product (KFP), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 8.90 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category and Revised from CARE B; Stable Short Term Bank 0.45 CARE A4; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated January 25, 2021, placed the rating(s) of KFP under the 'issuer non-cooperating' category as KFP 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. KFP continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated December 11, 2021, February 28, 2022 and March 02, 2022. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'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 KFP have been revised on account of non-availability of requisite information. Koner Food Product (KFP) was established in the July 2015. The firm is engaged in manufacturing of raw rice and parboiled rice. The milling unit of KFP is located at Burdwan, West Bengal with processing capacity of 5,400 Metric Ton Per Annum (MTPA). The firm is promoted by Burdwan based Mr. Uttam Koner, who has a long experience in the rice milling industry. KFP procures paddy from farmers & local agents and sells its products through the wholesalers and distributors located in West Bengal. The Firm sells the products under the brand name 'Trishool'. The firm was engaged in the expansion of its rice milling unit with an additional proposed installed capacity of 14,400 metric tonne per annum (MTPA). The project was estimated to be set up at a cost of INR8.03 crore, to be financed by way of partner's contribution of INR3.13 crore and term loan of INR4.90 crore. The term loan was under consideration by the banker. The project was expected to be operational from February, 2019. Mr. Uttam Koner (aged, 58 years) having more than two decade of experience, Mr. Priyabrata Koner (aged, 32 years) having 06 years of experience and Mr. Arnab Koner (aged, 25 years) having 04 years of experience in similar line of business, looks after the day to day operations of the firm along with other partners and a team of persons who have rich experience in the similar line of business. KYS MANUFACTURORS: CARE Cuts Rating on INR14cr LT Loan to B ----------------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of K.y.s. Manufacturors & Exporters Private Limited (KMEPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 14.00 CARE B; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category and Revised from CARE B+; Stable Detailed Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated January 21, 2021, placed the rating(s) of KMEPL under the 'issuer non-cooperating' category as KMEPL 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. KMEPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated December 7, 2021, December 17, 2021, December 27, 2021. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'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 KMEPL have been revised on account of non-availability of requisite information. The ratings also factored decline in scale of Operations, Profitability as well as debt coverage indicators during FY20 over FY19. KYS Manufacturers and Exporters Private Limited (KMPL) incorporated in March 1997, was promoted by Mr. Sandeep Malhotra and Mr. Mahesh Kumar Sharma, Jamshedpur with Mr. Sandeep Malhotra being the main promoter. KMPL is engaged in manufacturing of TMT bars and sectional products like angles, rounds, channels etc.at its manufacturing facility in Jamshedpur (Jharkhand) and is currently running with an installed capacity of 37500 MTPA. KMPL sells its products mainly in the states of Jharkhand, Bihar, Uttar Pradesh and West Bengal. NAFREF ENGINEERS: CARE Keeps C Debt Rating in Not Cooperating ------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Nafref Engineers Private Limited (NEPL) continues to remain in the 'Issuer Not Cooperating ' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 3.50 CARE C; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 2.70 CARE A4; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE Ratings Ltd has been seeking information from NEPL to monitor the rating vide e-mail communications/letters dated January 12, 2022, January 13, 2022, January 14, 2022 February 3, 2022, February 10, 2022, February 15, 2022, February 24, 2022 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 Ratings Ltd has reviewed the ratings on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. The rating on NEPL's bank facilities will now be denoted as CARE C; ISSUER NOT COOPERATING /CARE A4; 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(s). The rating assigned to the bank facilities of NEPL factors in the company's weak financial profile and elongated operating cycle in FY21 (Audited, refers to period from April 1 to March 31). The rating further remains constrained on account of the presence of NEPL in a highly fragmented and competitive industry. The rating, however, draw comfort from experienced promoters. Detailed description of the key rating drivers At the time of last rating on February 19, 2021 the following were the rating strengths and weaknesses (updated from information available from registrar of companies): Key rating weakness * Weak Financial Risk profile with elongated operating cycle: The scale of operations of the company continued to remain small with total operating income at INR3.53 crore in FY21 against INR4.11 crore in FY20. However, the company did post a nominal net profit worth INR0.16 crore as compared to a net loss of INR0.80 crore in FY20 due to lower cost of sales. Despite, this the capital structure stands leveraged as on March 31, 2021 owing to erosion of networth caused by losses in the past two years. Further, debt coverage parameters also remained weak owing to thin profitability marked by total debt to gross cash accruals ratio of 46.78 years as on March 31, 2021 and interest coverage ratio of 1.32 times in FY21. Further, NEPL's operating cycle continues to stand elongated at 201 days for FY21 (PY: 131 days) owing to elongated inventory holding days. * Highly competitive and fragmented industry: The spectrum of the industry in which the company operates is highly fragmented and competitive marked by the presence of numerous players in India. Hence, the players in the industry do not have any pricing power and are exposed to competition induced pressures on profitability. As such good customer relation and quality maintenance are significantly important for business growth. Key Rating Strengths * Experienced promoters with long track record of operations: The company commenced operations in 1979. NEPL is currently being managed by Mr. Sital Singh Bal, Mr. Amanpreet Singh Bal and Mr. Jashanjeet Singh Bal as directors. The directors have a total work experience ranging between four years to four decades which they have gained through NEPL. The directors Mr. Amanpreet Singh Bal and Mr. Jashanjeet Singh Bal are engineering graduates which is likely to benefit NEPL in the long run. Furthermore, the long track record has aided the company in having established relationship with customers and suppliers. Nafref Engineers Private Limited (NEPL), based in Amritsar, was established as a proprietorship firm in 1979, later incorporated in 2013 as a private limited company. The company is currently being managed by Mr. Sital Singh Bal, Mr. Amanpreet Singh Bal and Mr. Jashanjeet Singh Bal. NEPL is engaged in procurement, designing and commissioning of Air conditioning and heating plants. The firm gets 100% of its business orders through the tendering process. Post 2013, the company has also started to undertake civil construction work; however, has now suspended undertaking the same. NEPL procures Air conditioning and heating components from reputed manufacturers like Voltas, Daikin, Delta Cooling tower, Rapid Cool etc. and installs the system as per requirement of the client. NJR CONSTRUCTIONS: Ind-Ra Assigns 'BB+' Long Term Issuer Rating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned NJR Constructions Private Limited a Long-Term Issuer Rating of 'IND BB+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR284.1 mil. Fund-based working capital limits assigned with IND BB+/Stable/IND A4+ rating; and -- INR550 mil. Non-fund-based working capital limit assigned with IND A4+ rating. KEY RATING DRIVERS The assignment reflects NJR's medium scale of operations, as indicated by revenue of INR3,197 million in FY21 (FY20: INR4,853.70 million). The revenue increased due to the execution of a higher number of orders. As of November 2021, NRJ had an unexecuted order book of INR6,613 million (2.1x FY21 revenue), which provides moderate revenue visibility for the company. The company achieved a revenue of INR2,026 million in 8MFY22. Ind-Ra expects the revenue to increase on a yoy basis in FY22, backed by the unexecuted order book. The ratings are constrained by the geographical concentration of the order book. 90% of the unexecuted orders are concentrated in Telangana and Andhra Pradesh, with most of the orders being in the form of building work. As of November 2021, Telangana accounted for 47.9% of the total unexecuted order book, Andhra Pradesh accounted for 42.2%, and Karnataka constituted 8.7%. However, as the company only takes up orders from the state governments, it has not faced any payment issues in these projects to date, with the debtor days remaining comfortable at 24 days in FY21 (FY20: 18 days). The company is developing a residential project, Sukhii-9, in Bachupally, Hyderabad, with 239 flats and a total saleable area of 0.36 million square feet. The project is being developed at a total cost of INR1,300 million, out of which INR1,122.6 million (86.4% of the total cost) had been incurred as on 30 November 2021. The project is being funded by term loan of INR243 million, promoters' contribution of INR60 million, and customer advances of INR820 million. As of November 2021, 94% of the project, worth INR1,339.7 million, had been booked/sold, and of this amount, NJR had received INR1,230.8 million. Furthermore, the project is in the advanced stages of completion and the company has fully repaid the term loan in FY22. In addition, NJR is planning to execute new real estate projects over the medium term. The ratings are supported by NJR's healthy EBITDA margins. Despite a marginal increase in the cost of goods sold and personnel expenses, the margin remained stable at 6.5% in FY21 (FY20: 6.5%) as the company was able to reduce its administrative expenses. The ROCE stood at 21.5% in FY21 (FY20: 24.5%). The EBITDA margin of the company was 5.9% in 8MFY22. The agency expects the company's profitability to marginally decline on a yoy basis in FY22 due to an increase in employee expenses. The ratings benefit from NJR's strong credit metrics due to the healthy margins. The gross interest coverage ratio (EBITDA/interest cost) was 4.0x in FY21 (FY20: 5.8x) and the net leverage (net debt/ EBITDA) was 1.1x (0.8x) . The metrics deteriorated in FY21 owing to an increase in total debt to INR295.43 million in FY21 (FY20: INR262.19 million) and consequent increase in interest expense to INR52.3 million (FY20: INR30.91 million) . The credit metrics are likely to remain strong but weaken slightly in FY22 owing to the likely fall in profitability. Liquidity indicator - Adequate: NJR had free cash and cash equivalents of INR72.3 million in FY21 (FY20: INR120.1 million). Its average fund-based limit utilization was around 70% for the 12 months ended October 2021. The utilization is likely to have remained at the same level over the quarter ended January 2022. The net working capital cycle of NJR remained volatile and elongated to 20 days in FY21 (FY20: 3 days; FY19: 27 days) on account of an increase in inventory days to 45 days (FY20: 33 days). The company's cash flow from operations turned positive at around INR162 million in FY21 (FY20: negative INR36 million) due to favorable changes in the working capital and higher absolute EBITDA. The total investment of the company in illiquid asset increased to INR440.35 in FY21(FY20: INR59.5 million). Any substantial reduction in the investments would create an additional buffer for the company's liquidity. The ratings ae also supported by the promoters' experience of over three decades in civil construction. RATING SENSITIVITIES Negative: Future developments that may, individually or collectively, lead to a negative rating action are: - substantial deterioration in the scale of operations - substantial deterioration in the liquidity profile - increase in the investments - substantial deterioration in the credit metrics, with the interest coverage falling below 2.0x Positive: Future developments that may, individually or collectively, lead to a positive rating action are: - a substantial increase in the scale of operations - an improvement in the profitability margin - a substantial reduction in the investments - continued comfortable credit metrics COMPANY PROFILE NRJ is a contractor engaged in the construction of buildings, roads, bridges, and other civil works. Initially started as a proprietorship concern in 1990, the company was incorporated in 2009. PHOTON ENERGY: CRISIL Cuts Long/Short Term Rating to D ------------------------------------------------------ CRISIL Ratings has downgraded the ratings on the bank facilities of Photon Energy Systems Limited (PESL; part of Photon group) to 'CRISIL D/CRISIL D' from 'CRISIL B-/Negative/CRISIL A4'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Rating - CRISIL D (Downgraded from 'CRISIL B-/Stable') Short Term Rating - CRISIL D (Downgraded from 'CRISIL A4') The ratings downgrade reflects delay in the regularization of Guaranteed Emergency Credit Line (GECL) loan of INR60 lakhs which was used towards regularization of the overdrawn Cash Credit (CC) limit. The CC limit was overdrawn due to invocation of Bank Guarantee of INR1.14 crore on February 4, 2022. Post this, the GECL limit (forced loan) was supposed to be regularised before March 6, 2022 (30 days from the date of BG invocation). The rating continues to reflect the working capital-intensive operations and susceptibility of profitability to volatility in raw material prices. These ratings weaknesses are partially offset by the promoters' extensive experience in the industry, and group's longstanding relationships with customers. Analytical Approach For arriving at its ratings, CRISIL Ratings has combined the business and financial risk profiles of PESL and Photon Solar Power Pvt Ltd (PSPPL). Both entities, together referred to as the Photon group, have common management, operational synergies as they are in similar businesses, and also have significant financial linkages. Key Rating Drivers & Detailed Description Weaknesses: * Delays in Debt Servicing: The invocation of a bank guarantee (on February 4, 2022) for INR1.12 crore by one of the customers due to a dispute led to overdrawals in the cash credit for about 20 days. The same was regularized on 24-Feb-2022 using funds infused by the promoters to the tune of Rs.40 lakhs and a newly sanctioned GECL loan of INR60 lakhs by the bank. However, the company didn't pay off the GECL loan before March 6, 2022. * Working capital intensive operations: Operations remain working capital intensive as indicated by gross current asset (GCA) days of over 300 days for fiscal 2022. Working capital cycle is elongated due to elongated collection period from the customers under PPA agreements. Given the nature of the business, operations are expected to remain working capital intensive. * Susceptibility of turnover and margins to volatility in raw material prices and fluctuations in foreign exchange rates: Although the long-term demand and growth prospects for the industry are bright, CRISIL believes that there could be medium-term imbalances in the demand-supply situation, with many players, especially in Asia, setting up fresh capacities, resulting in surplus solar cell production. Furthermore, the group is also exposed to fluctuations in forex rates as some of the components being imported. Strength: * Established presence in solar energy systems market aided by promoter's extensive industry experience: Photon has been manufacturing solar water heating systems, sells solar power under PPA with authorities like TSGENCO, TSSPDL etc, and executing Engineering Procurement Construction (EPC) model projects in the space of solar energy system. The promoters' extensive experience in providing end-to-end solutions, its established relationship with customers and suppliers and Photon's geographical reach will support in marketing as well as managing the business. Liquidity: Poor Bank limit utilisation was moderate at around 75 percent for the past twelve months ended Oct-21. However, the CC limit was overdrawn for around 20 days due to invocation of BG which was regularised using company funds and a newly sanctioned GECL loan. Cash accruals are expected to be around Rs.7 crore which are tightly matching term debt obligation of around INR5-6 crores over the medium term. Current ratio is expected to be healthy at 1.81 times in fiscal 2022, however delayed collections weaken the liquidity. Rating Sensitivity Factors Upward factors: * Repayment of GECL loan and timely track record of debt servicing for more than 90 days * Improvement in debtor collection cycle and increase in cash surplus Photon Group was set up by Mr N Purushottam Reddy and his family members in 1995. The group manufactures and assembles solar energy systems and has solar power plants. Manufacturing facility of the group is located in Hyderabad. RAIPUR DEVELOPMENT: Ind-Ra Keeps 'D' Loan Rating in Non-Cooperating ------------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Raipur Development Authority's bank facilities 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 using these ratings. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating action is: -- INR4.863 bil. Bank loans (Long-term) maintained in the non- cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on January 4, 2019. Ind-Ra is unable to provide an update as the agency does not have adequate information to review the rating. COMPANY PROFILE Raipur Development Authority is a statutory body constituted by the state government for the integrated development of Raipur under the Town and Country Planning Act 1973 of the Chhattisgarh state. It functions under the provisions of Section 38 (1) of the CG Nagar Tatha Gram Nivesh Adhiniyam 1973. RAJI MATHEW: Ind-Ra Affirms BB LT Issuer Rating, Outlook Stable --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Raji Mathew & Co.'s (RMC) Long-Term Issuer Rating at 'IND BB'. The Outlook is Stable. The instrument-wise rating actions are: -- INR250 mil. Fund-based limits affirmed with IND BB/Stable rating; and -- INR450 mil. (increased from INR150 mil.) Non-fund-based limits affirmed with IND A4+ rating. KEY RATING DRIVERS The affirmation reflects RMC's continued small scale of operations, despite an increase in the revenue to INR818.6 million in FY21 (FY20: INR543.3 million). The growth in revenue was due to the execution of higher number of orders. The company booked revenue of INR401.2 million in 9MFY22 (9MFY21: INR505.98 million). As of December 31, 2021, it had an order book of INR2,160 million (2.58x of FY21 revenue), to be executed in the next 20 months. Management expects the revenue to decline in FY22 as most of the orders are in the initial stage of execution. Liquidity Indicator - Stretched: The company's maximum utilization of the fund-based limits was around 53.1% of its drawing power over the 12 months ended December 2021. However, the utilization increased to 92.5% in December 2021 due to seasonality of business, where execution of orders are at peak. The cash and cash equivalents stood at INR4.9 million at FYE21 (FYE20: INR3.0 million). The cash flow from operations turned positive to INR160.1 million in FY21 (FY20: negative INR10.9 million) mainly on account favorable changes in working capital. Consequently, the free cash flow turned positive to INR130.2 million in FY21 (FY20: negative INR37.6 million), despite a capex of INR29.9 million (INR26.8 million). However, Ind-Ra expects the cash flow from operations to decline in FY22, due to an increase in working capital requirement. RMC's working capital cycle improved to 76 days in FY21 (FY20: 340 days) on account of a decrease in the inventory holding period to 102 days (397 days) due to expedited verification process by the government and approval of bills, leading to a significant reduction in time taken to convert work-in-progress orders to sales. However, the agency expects the working capital cycle to elongate in FY22 due to a likely delay in payments from customers as well as piling up of inventory since most of the orders are in the initial stage of execution. The ratings remain constrained by geographical concentration risk as RMC undertakes road construction projects solely in Kerala. The ratings remain susceptible to tender-based operations and intense competition in the industry where revenue and profitability are entirely dependent on the ability to win tenders. The companies in this segment bid aggressively to secure contracts due to intense competition, which restricts the operating margin to a moderate level. However, the ratings benefit from RMC's healthy EBITDA margins of 13.9% in FY21 (FY20: 15.8%) with a return on capital employed of 22.4% (14.1%). The decline in margins was due to an increase in the cost of goods sold as a percentage of revenue to 45.96% in FY21 (FY20: 26.7%). The price of RMC's key raw material Bitumen is volatile as it is directly linked to crude oil price. Ind-Ra expects the margins to marginally decline further in FY22, given the increase in crude oil price. The ratings are also supported by the company's comfortable credit metrics with the interest coverage (operating EBITDA/gross interest expense) of 3.8x in FY21 (FY20: 2.9x) and the net leverage (total adjusted net debt/operating EBITDAR) of 1.3x (3.1x) on account of an increase in the absolute EBITDA to INR114.1 million (INR85.8 million) and a decrease in the total debt to INR153.6 million (INR271.3 million). Ind-Ra expects the credit metrics to deteriorate marginally in FY22 on account of lower-than-expected operating profits and increase in working capital requirements, along with additional disbursement of equipment and guaranteed emergency credit lines in October 2021. The rating remains supported by RMC's managing partner's more than three decades of experience the construction industry, leading to established relationships with its suppliers and customers. The ratings are no longer constrained by the partnership nature of the business. There was a substantial withdrawal of capital by the partners in FY20-FY21; however, RMC has infused capital of INR73.4 million till February 2022. Ind-Ra understands that this will be followed in the foreseeable future. RMC's disclosure standards are in line with the agency's corporate governance criteria for its rating level; this is likely to continue. RATING SENSITIVITIES Negative: Any deterioration in the scale of operations, leading to deterioration in the credit metrics with the interest coverage falling below 2.0x and/or weakening of the liquidity position would lead to a negative rating action. Positive: An improvement in the scale of operations, leading to an improvement in the credit metrics, along with an improvement in the liquidity position, all on a sustained basis, would lead to a positive rating action. COMPANY PROFILE RMC is a registered partnership firm engaged in construction activities for more than 18 years. Raji Mathew is the managing partner of the company; while Cini Mathew, Aleena Raje and Amala Raje are the other partners. The firm undertakes contracting work for Road Works of Kerala PWD, Ministry of Road Transport & Highways, Kerala State Transport Project, Kerala Road Fund Board, among others. RELIANCE CAPITAL: CARE Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Reliance Capital Limited (RCL) continues to remain in the 'Issuer Not Cooperating ' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term 15,000.00 CARE D; ISSUER NOT COOPERATING Instruments Rating continues to remain under ISSUER NOT COOPERATING category Long Term 1,500.00 CARE D; ISSUER NOT COOPERATING Instruments Rating continues to remain under ISSUER NOT COOPERATING category Market Linked Debentures 500.00 CARE PP-MLD D; ISSUER NOT COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE has been seeking information from RCL to monitor the rating(s) vide e-mail communications/letters dated February 12, 2022, February 2, 2022 and January 23, 2022 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. Further, RCL has not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. The rating on Reliance Capital Limited's long-term debt programme and instruments continues to be denoted as CARE D/CARE PP-MLD D; ISSUER NOT COOPERATING. On December 2, 2021, RBI filed applications for initiation of corporate insolvency resolution process (CIRP) against RCL. Pursuant to order dated December 6, 2021, of the NCLT, CIRP has been initiated as per the provisions of the Insolvency and Bankruptcy Code, 2016. The estimated date of closure of insolvency resolution process is June 4, 2022. 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 take into account continuous delay in servicing of debt obligations and continuous reporting of net loss. However, Debenture Holders at their meeting held on January 5, 2021 approved Asset Monetization plan of RCL with 100% majority. Detailed description of the key rating drivers At the time of last rating on March 9, 2021, delay in servicing of debt obligations and delay in asset monetization and poor liquidity were the rating weaknesses. Key Rating Weaknesses * Delay in servicing of debt obligations: There has been continuous delay in servicing of debt obligations on account of stretched liquidity. The liquidity profile of the group continues to be under stress However, Debenture holders approved monetization plan with 100% majority. * Continue weaknesses in Profitability profile: As 100% of the loan book is NPA, the interest income has sharply decline to Rs 3 crore in 9MFY22 from INR541 crores in 9MFY21. With decline in operating expenses by 15 % Y-o-Y and provisioning reversal of 0.81 crore, the company has reported net loss of INR1078 crores in 9MFY22 as against INR7,107 crores in 9MFY21. RCL was converted into a 'Core Investment Company' subject to necessary approvals from RBI on September 7, 2018. Reliance Capital has interests in life and general insurance; commercial and home finance; equities & commodities broking; investment banking; wealth management services; distribution of financial products; private equity; asset reconstruction; proprietary investments and other activities in financial services. RUBY MICA: CRISIL Withdraws B+ Rating on INR2.5cr Cash Loan ----------------------------------------------------------- CRISIL Ratings has withdrawn its ratings on the bank facilities of Ruby Mica Company Limited (RMCL) on the request of the company and receipt of a no objection certificate from its bank. The rating action is in line with CRISIL Ratings' policy on withdrawal of its ratings on bank loans. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 2.5 CRISIL B+/Stable/Issuer Not Cooperating (Withdrawn) Export Packing 1.9 CRISIL B+/Stable/Issuer Not Credit Cooperating (Withdrawn) Post Shipment 0.6 CRISIL A4/Issuer Not Credit Cooperating* (Withdrawn) Proposed Long Term 2.41 CRISIL B+/Stable/Issuer Not Bank Loan Facility Cooperating (Withdrawn) Standby Line 0.37 CRISIL B+/Stable/Issuer Not of Credit Cooperating (Withdrawn) Term Loan 0.68 CRISIL B+/Stable/Issuer Not Cooperating (Withdrawn) CRISIL Ratings has been consistently following up with RMCL for obtaining information through letters and emails dated November 13, 2021 and January 12, 2022, 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 RMCL. This restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on RMCL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the rating on bank facilities of RMCL continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating'. Set up as a partnership firm in 1968 by Jharkhand-based Bagaria family and reconstituted as a closely held public limited company in fiscal 2010, RMCL manufactures and exports synthetic mica paper and other products. RYATAR SAHAKARI: CRISIL Lowers Rating on INR26cr LT Loan to D ------------------------------------------------------------- CRISIL Ratings has downgraded its rating on the bank facilities of Ryatar Sahakari Sakkare Karkhane Niyamit (RSSKN) to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B-/Stable Issuer Not Cooperating' based on publicly available information. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit-Stock 20 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B-/Stable ISSUER NOT COOPERATING') Long Term Bank 26 CRISIL D (ISSUER NOT Facility COOPERATING; Downgraded from 'CRISIL B-/Stable ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with RSSKN for obtaining information through letters and emails dated January 22, 2022 and February 7, 2022 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 RSSKN, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on RSSKN is consistent with 'Assessing Information Adequacy Risk'. RSSKN, set up in 1999, is a co-operative society manufacturing sugar. The society is based in Bagalkot (Karnataka). Its operations are managed by Chairman Mr. R S Talewad who has more than three decades' experience in the industry. SAI TRADERS: Ind-Ra Assigns 'BB' Issuer Rating, Outlook Stable -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Sri Sai Traders (SST) a Long-Term Issuer Rating of 'IND BB'. The Outlook is Stable. The instrument-wise rating actions are: -- INR250 mil. Fund-based working capital limits assigned with IND BB/Stable/IND A4+ rating; and -- INR10 mil. Term loans due on FY25 assigned with IND BB/Stable rating. KEY RATING DRIVERS The ratings reflect SST's medium scale of operations, as indicated by revenue of INR1980.40 million in FY21 (FY20: INR2254.89 million). In FY21, the revenue declined due to the impact of COVID-19-led disruptions. During 1HFY22, SST booked revenue of INR1,539.804 million. In FY22, Ind-Ra expects the revenue to improve due to higher exports and increased domestic demand. The ratings factor in SST's modest EBITDA margins due to the trading nature of the business. The margin improved slightly to 1.59% in FY21 (FY20: 1.47%) due to higher realizations. The ROCE was 11.8% in FY21 (FY20: 12.2%). Ind-Ra expects the EBITDA margin to remain at similar levels in FY22 The ratings also reflect SST's modest credit metrics due to the modest margins. The interest coverage (operating EBITDA/gross interest expenses) improved slightly to 1.39x in FY21 (FY20: 1.37x) due to a decrease in interest expenses. The net leverage (total adjusted net debt/operating EBITDAR) improved marginally to 4.71x in FY21 (FY20: 4.78x), backed by an increase in the cash balance.. Ind-Ra expects the credit metrics to weaken in FY22, due to an increase in debt levels and the resultant rise in interest expenses. Liquidity Indicator - Poor: SST almost fully utilized the fund-based limits during the last 12 months ended December 2021, with an instance of overutilization up to 15 days in April 2021. The cash flow from operations declined to INR6.26 million in FY21 (FY20: INR65.33 million) due to unfavorable changes in the working capital. The free cash flow stood at INR6.49 million in FY21 (FY20: INR65.28 million). The net working capital cycle remained comfortable but stretched to 39 days in FY21 (FY20: 33 days) due to an increase in inventory days to 13 days (four days). The cash and cash equivalents stood at INR47.04 million at FYE21 (FYE20: INR1.72 million). SST does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. The ratings, however, are supported by the promoters' experience of two decades in the agricultural trading industry. RATING SENSITIVITIES Negative: A decline in the scale of operations, leading to deterioration in the overall credit metrics and/or a further pressure on the liquidity position could lead to a negative rating action. Positive: An increase in the scale of operations, along with an improvement in the overall credit metrics, with the interest coverage exceeding 1.7x, and an improvement in the liquidity profile, all on a sustained basis, could lead to a positive rating action. COMPANY PROFILE Established in 2000, SST is a partnership firm that is based in Chennai, Tamil Nadu. The firm is involved in the trading of agricultural commodities such as maize, rice, bajra and chillies. SANTIMOYEE COLD: CRISIL Assigns B+ Rating to INR10cr Loans ---------------------------------------------------------- CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating to the long-term bank facilities of Santimoyee Cold Storage Private Limited (SCSPL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL B+/Stable(Assigned) Long Term Loan 4 CRISIL B+/Stable(Assigned) Overdraft Facility 1 CRISIL B+/Stable (Assigned) The rating reflects the company's susceptibility to regulatory changes in the cold storage industry in West Bengal and modest scale of operations. These weaknesses are partially offset by the extensive industry experience of the promoters and moderate financial risk profile. Key Rating Drivers & Detailed Description Weaknesses: * Susceptibility to regulatory changes in the cold storage industry: The cold storage industry is regulated by state cold storage associations. Rental rates are fixed by the Department of Agricultural Marketing. In addition to rentals, the company receives marketing, drying and insurance charges per quintal. As part of the initiative of the central government to support agriculture, banks extend financial assistance to farmers storing produce in private cold storages against pledge of cold storage receipt. The cold storage takes loans from banks on behalf of the farmers and extends these loans to them. However, the primary responsibility of repaying the bank loan along with interest remains with the cold storages. Farmers have to clear their dues (loans and storage charges) before withdrawing their stock. However, if the material is not lifted by farmers or traders due to low prices of the commodity, the loss has to be borne by the cold storage. * Modest scale of operations: SCSPL is a relatively small player in the cold storage business with revenue of INR4.91 crore in fiscal 2021. Networth was modest at INR4.19 crore as on March 31, 2021, which limits the credit risk profile of the company in adverse situations. Strength: * Extensive experience of the promoters: The promoters' experience of almost two decades in the cold storage business, healthy relationships with traders and farmers and strong understanding of the industry, should continue to help the company to ensure healthy utilisation of its storage capacity. Liquidity: Stretched Cash accrual, expected at INR0.6-0.9 crore per annum over the medium term is tightly matched against yearly debt obligation of INR0.57 crore. Bank line utilisation averaged 50% for the 12 months through January 2022. Outlook: Stable CRISIL Ratings believes SCSPL will continue to benefit from the extensive industry experience of its promoters and healthy relationships with clients. Rating Sensitivity Factors Upward Factors * Sustained increase in operating margin and revenue (20%), leading to cash accrual of over INR1 crore * Efficient working capital management Downward Factors * Decline in revenue (20%) and profitability, leading to lower net cash accrual * Substantial increase in working capital requirement, weakening the liquidity and financial risk profiles SCSPL was incorporated in 2016 in Bankura district of West Bengal to provide cold storage facility to potato farmers and traders. The company, which also trades in potatoes, has a facility with a capacity of 26248 quintals. Mr Dilip Kr Chatterjee and Mrs. Santi Chatterjee are the promoters. SREELEKSHMI CASHEW: CRISIL Assign B+ Rating to INR9cr New Loan -------------------------------------------------------------- CRISIL Ratings has revoked the suspension of its rating on the bank facilities of Sreelekshmi Cashew Enterprises Private Limited (SCEPL) and has assigned its 'CRISIL B+/Stable' rating to the bank facilities of SCEPL. CRISIL Ratings had suspended the ratings on Oct 12, 2012, on account of non-cooperation by SCEPL with CRISIL Rating efforts to undertake are view of the ratings. SCEPL has now shared the requisite information enabling CRISIL Rating to assign its ratings. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Working 9.0 CRISIL B+/Stable (Assigned; Capital Facility Suspension Revoked) Term Loan 7.5 CRISIL B+/Stable (Assigned; Suspension Revoked) Working Capital 26.5 CRISIL B+/Stable (Assigned; Facility Suspension Revoked) The rating reflects the modest scale of SCEPL's operations, large working capital requirement and leveraged capital structure. This weakness is partially offset by the experience of the promoter in cashew business. Key Rating Drivers & Detailed Description Weaknesses: * Modest scale of operations: The modest scale, marked by revenue at INR69 crore in fiscal 2021, may continue to constrain pricing power and profitability. The business remains exposed to economic downturns or adverse development specific to the cities. * Large working capital requirement: The working capital cycle is likely to remain stretched. Gross current assets were over 278 days as on March 31, 2021 on account of its high inventory at 197 days. The overall working capital cycle is expected to remain at similar levels over the medium term. * Leveraged capital structure: The firm's capital structure was leveraged, reflected by gearing of 2.65 times as on 31 March, 2021. This is largely on account higher reliance on bank borrowings to fund working capital requirements. Further, the firm's total outside liability to tangible networth (TOLTNW) was at 3 times as on same date. Going forward, despite increasing accretions to reserves support the net worth, the total indebtedness will remain high. Strength: * Extensive industry experience of proprietor, and established customer relationships: SCEPL's promoter, Mr. Sundaran. P has experience of over 25 years in the cashew processing industry, which has helped the firm establish a strong distribution network and market its product in several states across India. It has also helped the firm survive adverse business conditions and build relationships with major customers and suppliers, resulting in consistent order flow and raw material supply at favorable prices. Liquidity: Stretched Bank limit utilization is high at around 88 percent for the past twelve months ended Dec 2021. Cash accruals are expected to be around INR2-3 crores which are sufficient against term debt obligation of INR0.60-2.4 crores over the medium term. In addition, it will be act as cushion to the liquidity of the company. 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 SCEPL will continue to benefit from its strong track record in the cashew industry. Rating Sensitivity factors Upward Factors: * Significant improvement in liquidity with moderation in bank limit utilization to below 75%. * Improvement in gearing to less than 2 times. * Growth in revenue and steady operating margin, leading to higher cash accrual Downward Factors: * Higher than expected stretch in the working capital cycle over 300 days, putting pressure on its liquidity * Decline in revenue or operating profitability, lower than estimated cash accrual SCEPL, a private limited company, processes raw cashew nuts of various grades into cashew kernels. The firm also trades in raw cashew nuts and cashew kernels. SREESHA EDUCATIONAL: CRISIL Withdraws D Rating on INR15cr Loan -------------------------------------------------------------- CRISIL Ratings has downgraded its rating on the long-term bank facility of Sreesha Educational Services LLP (Sreesha; part of the Sreesha group) to 'CRISIL D' from 'CRISIL B-/Stable' and has subsequently withdrawn the ratings at the company's request and on receipt of a no-objection certificate from the bankers. This is in line with the policy of CRISIL Ratings regarding withdrawal of bank loan ratings. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 15 CRISIL D Downgraded from 'CRISIL B-/Stable'; Rating Withdrawn) The downgrade reflects instances of delays in payment of the term loan interest in January 2022 and February 2022 owing to weak liquidity. Lower occupancy and stretch in fee receipts resulted in weak liquidity. The rating continues to reflect modest scale of operations of the group and exposure to intense competition, stringent regulations and weak financial risk profile. These weaknesses are partially offset by the extensive experience of the promoters in the education services industry. Analytical Approach For arriving at the ratings, CRISIL Ratings has combined the business and financial risk profiles of Sreesha and Usha Educational Foundation (Usha). This is because both the entities, together referred as the Sreesha group, are in the same industry and have operational and financial linkages. Key Rating Drivers & Detailed Description Weaknesses: * Modest scale of operations and exposure to intense competition: The business risk profile of the group is constrained by its modest scale in the intensely competitive education services industry. The schools are based out of Bengaluru and face competition from many other institutions in the city. The group generated revenue of INR3.52 crore in fiscal 2021. The group's scale of operations will continue to limit its operating flexibility. * Exposure to stringent regulations: Establishment and operations of educational institutions are regulated by various governmental and quasi-governmental agencies, such as the University Grants Commission, All India Council for Technical Education, Central Board of Secondary Education, universities and state governments. Each body has detailed procedures for granting permission to set up institutions, and approvals need to be renewed every three or five years. Any non-compliance will result in cancellation of affiliation and/or license, leading to loss of reputation for the college and revenue for the group. * Weak financial risk profile: The schools have been operational since 2019 and are yet to become profitable; this has resulted in erosion of networth. Furthermore, the group has availed of external debt for funding the capex. With low accretion to reserve and high reliance on external borrowings, the financial risk profile is expected to remain weak over the medium term. Strength * Extensive experience of the partners: The decade-long experience of the partners and their strong understanding of the market dynamics has enabled them to establish visibility for the group's schools in Bengaluru. Liquidity: Poor The group has delayed servicing of term loan interest for the month of January 2022 and February 2022 owing to weak liquidity. Rating Sensitivity factors Upward factors * Track record of timely debt servicing for at least over 90 days * Improvement in operating resulting in improvement in liquidity position Established in 2018 as a limited liability partnership, Sreesha runs a school from grades 1-8. It is based in Bengaluru. Mr Mahesh Reddy and Ms Usha Reddy are partners in the firm. Established in 2017, Usha operates a pre-primary school in Bengaluru, which commenced operations in June 2019. SURYADIPTA PROJECTS: CRISIL Lowers Rating on INR2.9cr Loans to B+ ----------------------------------------------------------------- CRISIL Ratings has downgraded its ratings on the bank facilities of Suryadipta Projects Private Limited (SPPL) to 'CRISIL B+/Stable/CRISIL A4' from 'CRISIL BB-/Stable/CRISIL A4+'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 7.1 CRISIL A4 (Downgraded from 'CRISIL A4+') Cash Credit 2.6 CRISIL B+/Stable (Downgraded from 'CRISIL BB-/Stable') Working Capital 0.3 CRISIL B+/Stable (Downgraded Term Loan from 'CRISIL BB-/Stable') The downgrade reflects the deterioration in business risk profile in fiscal 2021 as revenue and operating margin deteriorated significantly from INR16 crore and 7.7% in fiscal 2020 to INR11.crore and 5.4% in fiscal 2021 respectively. This was due to disruption in order execution because of lockdown, labor issues and lesser new orders leading to reduced demand. While revenue is expected to improve in the current fiscal, margin will remain subdued due to higher steel prices and lower margins from the on-going projects due to intense competition. Liquidity is also stretched with cash accruals expected to be tightly matched against repayment obligations and high bank limit utilization. The ratings reflect the modest scale of operations of SPPL, volatile operating margin, working capital-intensive operations and modest financial risk profile. These weaknesses are partially offset by the extensive experience of the promoter, wide end-user industry base, and high product diversity. Analytical Approach Unsecured loans of INR1.11 crore as on March 31, 2021, from the director have been treated as neither debt nor equity as these are expected to remain in the business. Key Rating Drivers & Detailed Description Weaknesses: * Modest scale of operations: Business risk profile is constrained by small scale in the intensely competitive industrial machinery and consumables industry as reflected in the revenues of INR11 crore for fiscal 2021 Though the revenues are expected to increase in the current fiscal it would continue to remain modest. Subdued scale will continue to limit operating flexibility over the medium term. * Volatile operating margin: Operating profitability has fluctuated at 2.3-7.6% for the few fiscals through 2021 because margin varies depending on type of project and relations with customers; profitability also changes with volatility in the prices of key raw material, steel. The company now has price escalation clause in its project terms, and sustenance of margin would remain a key monitorable over the medium term. * Working capital-intensive operations: The GCAs were 579 days as on March 31, 2021, because of high receivables and inventory levels of 98 days and 355 days, respectively. Receivables are expected to improve as the company is now demanding higher advance payments. Inventory is large primarily due to high turnaround time of work order leading to higher work in progress inventory. It was stretched in fiscal 2021 because of pandemic-related disruptions. Inventory is expected to reduce over the medium term but will remain sizeable. Hence, working capital requirement will also remain large. * Modest financial risk profile: Networth was small and total outside liabilities to adjusted networth (TOLANW) weak at INR3.7 crore and 3.77 times, respectively, as on March 31, 2021, due to high reliance on advances from customers to support working capital requirement and high reliance on external debt to support working capital requirement.. TOLANW will remain high over the medium term. Debt protection metrics were muted, as reflected in interest coverage and net cash accrual to adjusted ratios of 1.59 times and 0.05 time, respectively, for fiscal 2021. The metrics declined in fiscal 2021 due to decrease in revenue and hence fall in operating profits, it is expected to improve over the medium term with ramp-up in operations. Strengths: * Extensive experience of the promoter: Presence of over 40 years in the industrial machinery and consumables industry has enabled the promoter to understand market dynamics and establish healthy relationships with suppliers and customers. This is reflected in their steadily increasing revenue for the few fiscals through 2020. Though turnover declined in 2021 due to pandemic-related restrictions, it is expected to increase over the medium term. * Diversified end-user industry base and high product diversity: Clientele includes players from the ship building, cement machinery, chemical equipment, food processing equipment, steel plant machinery, offshore equipment, and special project segments. This shields revenue and profitability from slowdown in a particular end-user industry. Liquidity: Stretched Expected cash accrual of around INR45 lakh would be insufficient to meet debt obligation of INR49 lakh in fiscal 2022; accrual of INR60 lakh would be just sufficient to repay debt of INR37 lakh in fiscal 2023. Bank limit utilisation was moderate at 77% for the 12 months through November 2021. Unsecured loans of INR1.1 crore (as on March 31, 2021) from the director support liquidity. Cash and bank balance stood at INR1.1 crore while current ratio was 1.38 times. Outlook: Stable The company will continue to benefit from the extensive experience of its promoter and established client relationship. Rating sensitivity factors Upward factors: Increase in revenue while sustaining operating margin, leading to cash accrual of more than INR1 crore Better working capital management with GCAs less than 400 days Downward factors: * Decline in revenue or operating margin resulting in cash accrual of less than INR40 lakh, thus affecting liquidity * Further weakening of liquidity with bank limit utilization above 95% Incorporated in 1998 in Thane, Maharashtra, and promoted and managed by Mr Shyamashish Ghosal, SPPL manufactures ship vessel and process equipment for diversified industries at Mumbai, Maharashtra. TARA EDUCATIONAL: CRISIL Cuts Long/Short Term Rating to D --------------------------------------------------------- Due to inadequate information, CRISIL Ratings in line with Securities and Exchange Board of India guidelines, had migrated its ratings on the bank facilities of Tara Educational Trust (TET) to 'CRISIL BB-/Stable/CRISIL A4+ Issuer Not Cooperating'. However, TET has subsequently started sharing requisite information, necessary for carrying out comprehensive review of the rating. Consequently, CRISIL Ratings is downgraded its ratings on the bank facilities of TET to 'CRISIL D/CRISIL D' from 'CRISIL BB-/Stable/CRISIL A4+ Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Rating - CRISIL D RISIL D (Downgraded from 'CRISIL BB-/Stable ISSUER NOT COOPERATING') Short Term Rating - CRISIL D (Downgraded from 'CRISIL A4+ ISSUER NOT COOPERATING') The downgrade reflects NFSEL's poor liquidity, as evidenced by instances of delay in servicing of its debt obligations. The rating also reflects exposure to risks related to intense competition and geographical concentration in revenue profile. These weaknesses are partially offset by extensive experience of the trustees in the education sector, Key Rating Drivers & Detailed Description Weaknesses: * Delay in Debt Servicing: The trust has been incurring delays in serving of debt obligations with respect to the term loan facilities. The trust has not yet paid the debt obligation with respect to term loan for the month of February 2022 and certain portion of amount is still overdue for the month of January 2022 as well * Exposure to risks related to intense competition and geographical concentration: TET's schools and college are all in the Gajjan Majra village in Punjab, thereby exposing the trust to risk of geographical concentration. Further, TET faces competition from many other reputed institutes in the state. Any increase in competition or slowdown in student intake because of shift in student preferences to other competing institutes can significantly impact the trust's business risk profile. Revenue was modest at INR14.98 crore in fiscal 2020. Strengths: * Extensive experience of the trustees: TET has 10 trustees, with Ms Rajbeer Kaur as the Chairperson, who have an extensive experience of around two decades in the education sector. The extensive experience of the trustees has enabled the trust to operate three schools and one college, and also offer a wide range of, and increase the number of, courses offered in them. Liquidity: Poor Bank limit utilisation averaged 99% in the 12 months ending Jan-22. Liquidity is likely to remain weak, marked by delays in servicing of its debt obligations for the term loan facility availed. The trust has incurred delays in servicing of its debt obligations in the month of January and February 2022. Rating Sensitivity factors Upward factors: * Regularisation of timely debt repayment with a track record of 90 days * Improvement in scale of operations with timely receipt of fess payment providing support to the liquidity profile Set up in 1998 as Pioneer Public School Management Committee by Mr Jaswant Singh, the trust got renamed as TET in 2010. It runs three schools -- Pioneer Public School, Pioneer Convent School and Tara Convent School -- and one college -- Tara Vivek College -- in Sangrur, Punjab. TROIX CHEMICALS: CARE Moves B+/A4 Debt Rating to Not Cooperating ---------------------------------------------------------------- CARE Ratings has migrated the rating on bank facilities of Troix Chemicals Private Limited (TCPL) to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term/ 12.00 CARE B+/CARE A4; ISSUER NOT Short Term COOPERATING; Rating moved to ISSUER NOT COOPERATING Category Detailed Rationale & Key Rating Drivers CARE Ratings Ltd has been seeking information from TCPL to monitor the rating vide email communications dated January 11, 2022, January 14, 2022, February 1, 2022, February 9, 2022 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 Ratings Ltd has reviewed the ratings on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. The rating on TCPL's bank facilities will now be denoted as 'CARE B+; Stable; ISSUER NOT COOPERATING/CARE A4; 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(s). The rating assigned to the bank facilities of TCPL factors in leveraged capital structure with weak debt coverage position in FY21 (refers to period from April 01 to March 31). The rating further remains constrained on account of presence in fragmented industry. The rating, however, draw comfort from experienced management and increase in its scale of operation coupled with improvement in profitability in FY21. Detailed description of the key rating drivers At the time of last rating on March 16, 2021 the following were the rating strengths and weaknesses (updated from information available from registrar of companies): Key Rating Weaknesses * Modest in scale of operation with low profit margin: TCPL's total income although increased by 39.01% in FY21 but stood modest at INR112.56 crore against INR80.97 crore in FY20. Given the trading nature of operations, profitability margin remained constrained despite an improvement in scale of operations and stood low at 1.76% in FY21 against 2.19% in FY20. Consequently, PAT margin also remained low at 1.06% in FY21 as against 0.14% in FY20. * Leveraged capital structure and weak debt coverage indicators: Despite an improvement, TCPL's capital structure continued to remain leveraged marked by overall gearing of 6.27x as on March 31, 2021 against 9.29x as on March 31, 2020 as a result of a low networth vis-à-vis high overall debt. Debt coverage remained weak marked by an interest coverage of 1.11x during FY21 against 1.09x in FY20 on account of high fixed finance costs relative to operating profitability of TCPL. Further, total debt to gross cash accruals(GCA) ratio improved as a result of increase in ash profit; however, remains weak at 14.10 years as on March 31, 2021 against 86.75 years as on March 31, 2020. * Presence in highly competitive and fragmented industry: Chemical trading industry is a highly fragmented industry and there are large numbers of organized and unorganized players which has led to high competition in the industry. The company faces competition from few large players as well as numerous players in the unorganized segment. Also, on account of its trading nature of business, the entry barriers are low leading to stiff competition for the company. Key Rating Strengths * Long track record of operations along with experienced promoters: TCPL has been in existence for over three decades in the chemical trading industry in which it has established long term relationships with its customers and suppliers. TCPL is promoted by the Jain and Punamiya families. The promoters have been involved with the business for over three decades and established strong business relations. Further, they have sustained authorized dealership with Andhra Petrochemicals Limited and receive repeat orders from its customers as well. Established in the year 1984, Troix Chemicals Private Limited (TCPL) is a private limited company engaged into trading and distribution of petrochemicals i.e. solvents (Ethyl Hexanol, Iso-Butanol and n-Butanol) which find application primarily in the coatings (viz. paints, thinners and varnish), elastic and pharmaceutical industry. It is an authorized distributor of Andhra Petrochemicals Limited (APL) for all over India and operates out of its office in Mumbai. VELAMMAL EDUCATIONAL: Ind-Ra Assigns BB Bank Loan Rating -------------------------------------------------------- India Ratings and Research (Ind-Ra) has rated Velammal (Madurai) Educational Trust's (VMET) bank facilities as follows: -- INR1,000.00 bil. Fund-based working capital limit assigned with IND BB/Stable rating; -- INR466.32 mil. Bank loans assigned with IND BB/Stable rating; and -- INR1,733.68 bil. Proposed bank loans* assigned with IND BB/ Stable rating. *includes term loans outstanding of INR869.40 million availed from Indian Overseas Bank (debt rated at 'IND AA-'/Stable). The said loan was borrowed by Velammal Educational Trust (main trust of Velammal Group) towards creation of assets for Velammal Medical College Hospital & Research Institute (VMCH). The assets and liabilities of VMCH were transferred to VMET and repayment towards the loans is being serviced by VMET. However, in the bank's records the loans are still remain with Velammal Educational Trust and are yet to be transferred to VMET. The ratings reflect VMET's stretched liquidity position, and moderate coverage metrics and debt burden. However, the ratings are supported by the trust's diversified revenue profile and strong financial support from the trustees. KEY RATING DRIVERS Liquidity Indicator – Stretched: The trust has an overdraft facility of INR1,000 million, the average utilization of which was high at 80.57% during the 12 months ended January 2022. However, VMET's payable days increased to 211 days in FY21 (FY20: 35 days) owing to delay in payments for purchase of medicine from group entities. Furthermore, the receivable days remained short below 20 days during FY18-FY21. Its available funds (cash and unrestricted investments) stood moderate at INR323.25 million in FY21 (FY20: INR206.93 million), which covers 11.38% of total debt (2.39%) and 26.55% of operating expenditure (13.37%). FY21 financials are provisional in nature. The ratings also reflects VMET's moderate coverage metrics and debt burden. The trust's debt burden (debt including rent/current balance before interest, depreciation and rent) improved to 2.96x in FY21 (FY20: 10.45x) owing to the transfer of unsecured loans of INR4,994.67 to the corpus fund at FYE21. During FY18-FY21, the trustees and group entities provided about INR5,876.69 million in the form of unsecured loans and donations to VMET. VMET was able to maintain debt service coverage ratio (DSCR) above 1.1x and interest service coverage ratio above 2.3x during FY18-FY21. However, the DSCR is likely to reduce below 1.1x during FY22-FY23 due to its high debt service commitments during the same period. The trust is likely to depend on unsecured loans from the trustees to meet its debt servicing obligations of about INR900 million during FY22-FY23. However, the ratings are supported by VMET's diversified revenue profile. On an average, hospital income accounted for 58.81% of the total income during FY18-FY21, while tuition fee income accounted for 37.90%. The trust's total income grew at a CAGR of 9% over FY18-FY21. However, the total income declined 8.38% yoy to INR2,176.72 million in FY21, mainly due to a 17.43% yoy decrease in the hospital income to INR1,166.18 million on the back of a drop in the number of patients visiting the hospital due to the Covid-19 pandemic. This was partially offset by a 10.33% yoy increase in the tuition fee income to INR919.49 million in FY21 on account of increased student headcount. The trust has increased its hospital bed capacity to 2,100 in FY22 (FY21: 1,770 beds). Thus, Ind-Ra expects income from the hospital and medical college to drive revenue growth in the medium term. The operating margin excluding rent expanded to 43.96% in FY21 (FY20: 34.84%), mainly due to a reduction in staff salary during March-August 2020 on account of the pandemic. VMET reported a net surplus of INR138.87 million in FY21 (FY20: INR154.08 million) and net cash accruals of INR541.21 million (INR537.28 million). VMET's total student headcount grew at a CAGR of 20.62% during the academic year 2015-16 to 2020-21. The trust has projected to achieve student headcount of 1,477 for the academic year 2021-22 as admissions for medical college are under process. The ratings are further supported by VMET's three decades of operating experience and strong financial support from the trustees and group entities in the form of unsecured loans and donations. Ind-Ra expects the support from the trustees to continue, if required. RATING SENSITIVITIES Positive: Events that may collectively lead to a positive rating action are: - revenue increasing above INR2.500 billion on a sustained basis, - coverage (DSCR including rent) sustaining above 1.2x, and - an improvement in the liquidity profile. Negative: Events that may, individually or collectively, lead to a negative rating action are: - a 5% yoy fall in student strength for two consecutive years, - operating margin reducing below 30% on a sustained basis, and - leverage increasing above 4.0x on a sustained basis. COMPANY PROFILE Established in 1993, VMET is a public charitable trust registered under Section 12A of the Income Tax Act. VMET was promoted by M. V. Muthuramalingam (Chairman and Managing Trustee) and is a part of the Velammal group. It manages a medical college with a 2,100-bed hospital, a nursing college, an allied health sciences college and a trade center in Madurai, Tamil Nadu. Apart from VMET, Velammal Group has three other trusts named, Velammal Educational Trust, Veeramakali Memorial Welfare Trust and Velammal (Chennai) Educational Trust. VENKATESWARA & COMPANY: Ind-Ra Assigns B- Long Term Issuer Rating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Sri Venkateswara and Company (SVC) a Long-Term Issuer Rating of 'IND B-'. The Outlook is Stable. The instrument-wise rating action is: -- INR250 mil. Non-fund-based working capital limit assigned with IND A4 rating. KEY RATING DRIVERS The rating reflects SVC's small scale of operations as indicated by its revenue of INR351.45 million in FY21 (FY20: INR 423.63 million). In FY21, its revenue declined due to the COVID-19-led lockdowns and disruptions in international markets. As of 9MFY22, the company booked revenue of INR231.978 million. For FY22, the management expects its revenue to improve, on account of the relaxations in government regulations. The rating also factors in SVC's weak EBITDA margins of 2.09% in FY21 (FY20: 1.99%) with a return on capital employed of 6.90% (9.10%). In FY21, its EBITDA margins improved marginally because of the lower cost of goods sold. For FY22, Ind-Ra expects the EBITDA margins to remain at the similar levels given the nature of its business. The rating reflects SVC's modest credit metrics as reflected by the interest coverage (operating EBITDA/gross interest expenses) of 1.13x in FY21 (FY20: 1.24x) and the net leverage (total adjusted net debt/operating EBITDAR) of 6.26x (5.65x). In FY21, the interest coverage declined because of the lower operating income, and the net leverage increased to 22.57x in FY21 (FY20: 19.90x). For FY22, Ind-Ra expects the credit metrics to remain at the similar level as it has no major debt-funded capex in the pipeline Liquidity Indicator - Stretched: SVC's average maximum utilization of the fund-based limits was 92.16% and non-fund-based limits was 67.02% in the 12 months ended in December 2021. The cash flow from operations stood at INR2.60 million in FY21 (FY20: negative INR52.14 million) due to the positive changes in the working capital. Furthermore, the free cash flow stood at INR2.91 million (FY20: negative INR52.14 million). The net working capital cycle stood at 83 days in FY21 (FY20: 67 days), due to an increase in the inventory and receivables days. The cash and cash equivalents stood at INR2.09 million at FYE21 (FYE20: INR1.53 million). Furthermore, SVC does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. However, the ratings are supported by the promoter's four decades of experience in the timber trading industry, helping the company establish strong relationships with customers and suppliers. RATING SENSITIVITIES Negative: A significant decline in the scale of operations, leading to a deterioration in the credit metrics with the interest coverage falling below 1.1x, or a further deterioration in the liquidity position could lead to a negative rating action. Positive: Any substantial increase in the scale of operations and liquidity, and the interest coverage exceeding 1.30x, along with an improvement in the credit metrics on a sustained basis, could lead to a positive rating action. COMPANY PROFILE Located in Tenkasi (Tamil Nadu), SVC is a partnership firm trading timber logs and sawn sizes, and purchasing them domestically and internationally. VIMAX CROP: CRISIL Withdraws B- Rating on INR15cr Loans ------------------------------------------------------- CRISIL Ratings has downgraded its rating on the bank facilities of Vimax Crop Science Limited (VCSL) to 'CRISIL B-/Stable' from 'CRISIL B/Stable' and subsequently withdrawn the rating at the company's request and on receipt of a no-objection certificate from the bankers. The withdrawal is in line with CRISIL Ratings' policy on withdrawal of bank loan ratings. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4.4 CRISIL B-/Stable (Downgraded from 'CRISIL B/Stable'; Rating Withdrawn) Proposed Long Term 10.6 CRISIL B-/Stable (Downgraded Bank Loan Facility from 'CRISIL B/Stable'; Rating Withdrawn) The downgrade reflects lower than expected revenue over INR11 during FY21 and expecting to remain modest over the medium term. Operations were working capital operations which led to higher reliance on external bank lines and as a result, bank lines were utilised in range of 97-99% in past. Aside this, financial risk profile of company remains weak and expecting to be so over the medium term. The rating reflects modest scale of operations and volatile operating margin, and large working capital-intensive operations. These weaknesses are partially offset by the promoters' extensive experience in agrochemical industry and established relationship with customers and suppliers. Key Rating Drivers & Detailed Description Weakness: * Large working capital requirement: Operations are working capital intensive, as reflected in gross current assets of 301 days in FY21 against 381 days in FY20 led by receivables of 166 days and inventory of 170 days. However, the portion of working capital requirement is being met through creditors of 88 days in FY21. Over the medium term, the operations are expected to remain working capital intensive. * Modest scale of operations and volatility in operating margin: Revenue has remained volatile, ranging between INR8 crore to INR40 crore in past 5 fiscals on account of agriculture being dependent on rainfall and change in the crop pattern of farmers. Operating margin has also fluctuated due to change in product mix as per the demand scenario. Strengths: * Promoters' extensive experience in agrochemical industry and established relationship with customers and suppliers: The promoters have an experience of close to a decade in agrochemical industry, which enables them to innovate the products as per customer requirement. VCSL has rapidly expanded its distribution network, with over 1700 dealers in eight states. The promoters' extensive experience will continue to help VCSL over the medium term. Liquidity: Stretched Liquidity is stretched, with utilization of bank limit of INR4.4 crore averaged at 98% in the twelve months through December 2021. Outlook: Stable CRISIL Ratings believes the company will continue to benefit from the experience of the promoter. Rating Sensitivity Factors Upward factor * Significant growth in revenue, and better operating margin, leading to net cash accrual of over INR2-3 crore * Improvement in financial risk profile Downward factor * Decline in revenue by 30% * Further stretch in working capital Incorporated in 2010, VCSL manufactures insecticides, fungicides, herbicides, organic products, and other such products. The company's manufacturing facility is at Rajkot, Gujarat. ========= J A P A N ========= TAKATA CORP: Appeal From Airbag Suit Dismissal May Proceed ---------------------------------------------------------- The appeals case captioned ERIC D. GREEN, TRUSTEE, Appellant, v. MITSUI SUMITOMO INSURANCE COMPANY, LIMITED, Appellee, C.A. No. 22-9-RGA. Bankr. BAP No. 22-1 (D. Del.), is brought by Eric D. Green, in his capacity as trustee of the PSAN PI/WD Trust d/b/a the Takata Airbag Tort Compensation Trust Fund. The Bankruptcy Court dismissed the Trustee's complaint for declaratory relief by the Trustee for the Takata Airbag Tort Compensation pending in an adversary proceeding where the Bankruptcy Court held that: (1) the Trustee's claim for declaratory relief was not a core proceedings, and (2) the form selection clauses in the MSI insurance policies must be enforced in this matter. After meeting and conferring, the parties were unable to agree regarding mediation. The Trustee strongly believes the parties would benefit from a mediation that provides the opportunity to reach a global settlement of their dispute, the benefit of which avoids unnecessary costs and time involved in protracted litigation, and would delay the recoveries available to the beneficiaries of the Trust, who include those individuals who have been allegedly injured or killed by Takata's defective airbags. The Trustee offered mediation in Japan, which MSI declines. Therefore, the parties should work together to resolve their issues. MSI argues this appeal relies on a legal analysis of whether the Bankruptcy Court was correct in its finding that it lacked jurisdiction over the adversary proceeding because this proceeding is an insurance coverage dispute and is not a core proceeding; and any coverage dispute must be resolved by a Japanese court consistent with Japanese law under the forum selection and designation of law clauses in the MSI insurance policies. It contends that because this matter represents a binary legal issues, it maintains that this appeal is not amenable to mediation and would not be a productive exercise. It further contends that no settlement is likely without a final appellate decision addressing the jurisdiction issues adjudicated by the Bankruptcy Court. Although the parties have not been involved in formal mediation, they have discussed and briefed the legal questions for the past four years. The parties did not propose a briefing schedule. Chief Magistrate Judge Mary Pat Thynge of the United States District Court for the District of Delaware recommends that, pursuant to paragraph 2(a) Procedures to Govern Mediation of Appeals from the United States Bankruptcy Court for this District and 28 U.S.C. Section 636(b), this matter be withdrawn from the mandatory referral for mediation and proceed through the appellate process of the District Court. The parties were advised of their right to file objections to the Recommendation pursuant to 28 U.S.C. Section 636(b)(1)(B), FED. R. CIV. P. 72(a) and D. DEL. LR 72.1. A full-text copy of the Recommendation dated February 25, 2022, is available at https://tinyurl.com/3pcbnmwk from Leagle.com. About TAKATA Corp. Japan-based Takata Corporation (TYO:7312) -- http://www.takata.com/en/-- develops, manufactures, and sells safety products for automobiles. The Company offers seatbelts, airbags, steering wheels, child seats, and trim parts. Headquartered in Tokyo, Japan, Takata operates 56 plants in 20 countries with approximately 46,000 global employees worldwide. The Company has subsidiaries located in Japan, the United States, Brazil, Germany, Thailand, Philippines, Romania, Singapore, Korea, China, and other countries. Takata Corp. filed for bankruptcy protection in Tokyo and the U.S., amid recall costs and lawsuits over its defective airbags. Takata and its Japanese subsidiaries commenced proceedings under the Civil Rehabilitation Act in Japan in the Tokyo District Court on June 25, 2017. Takata's main U.S. subsidiary TK Holdings Inc. and 11 of its U.S. and Mexican affiliates each filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 17-11375) on June 25, 2017. Together with the bankruptcy filings, Takata announced it has reached a deal to sell all its global assets and operations to Key Safety Systems (KSS) for US$1.588 billion. Nagashima Ohno & Tsunematsu is Takata's counsel in the Japanese proceedings. Weil, Gotshal & Manges LLP and Richards, Layton & Finger, P.A., are serving as counsel in the U.S. cases. PricewaterhouseCoopers is serving as financial advisor, and Lazard is serving as investment banker to Takata. Ernst & Young LLP is tax advisor. Prime Clerk is the claims and noticing agent. The Debtors Meunier Carlin & Curfman LLC, as special intellectual property counsel. Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel, KPMG is serving as financial advisor, Jefferies LLC is acting as lead financial advisor. UBS Investment Bank also provides financial advice to KSS. On June 28, 2017, TK Holdings, as the foreign representative of the Chapter 11 Debtors, obtained an order of the Ontario Superior Court of Justice (Commercial List) granting, among other things, a stay of proceedings against the Chapter 11 Debtors pursuant to Part IV of the Companies' Creditors Arrangement Act. The Canadian Court appointed FTI Consulting Canada Inc. as information officer. TK Holdings, as the foreign representative, is represented by McCarthy Tetrault LLP. The U.S. Trustee has appointed an Official Committee of Unsecured Trade Creditors and a separate Official Committee of Tort Claimants. The Official Committee of Unsecured Creditors has selected Christopher M. Samis, Esq., L. Katherine Good, Esq., and Kevin F. Shaw, Esq., at Whiteford, Taylor & Preston LLC, in Wilmington, Delaware; Dennis F. Dunne, Esq., Abhilash M. Raval, Esq., and Tyson Lomazow, Esq., at Milbank Tweed Hadley & McCloy LLP, in New York; and Andrew M. Leblanc, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in Washington, D.C., as its bankruptcy counsel. The Committee has also tapped Chuo Sogo Law Office PC as Japan counsel. The Official Committee of Tort Claimants selected Pachulski Stang Ziehl & Jones LLP as counsel. Gilbert LLP will evaluate the insurance policies. Sakura Kyodo Law Offices is serving as special counsel. Roger Frankel, the legal representative for future personal injury claimants of TK Holdings Inc., et al., tapped Frankel Wyron LLP and Ashby & Geddes PA to serve as co-counsel. Takata Corporation ("TKJP") and affiliates Takata Kyushu Corporation and Takata Services Corporation commenced Chapter 15 cases (Bankr. D. Del. Case Nos. 17-11713 to 17-11715) on Aug. 9, 2017, to seek U.S. recognition of the civil rehabilitation proceedings in Japan. The Hon. Brendan Linehan Shannon oversees the Chapter 15 cases. Young, Conaway, Stargatt & Taylor, LLP, serves as Takata's counsel in the Chapter 15 cases. In February 2018, the U.S. Bankruptcy Court confirmed the Fifth Amended Chapter 11 Plan of Reorganization filed by TK Holdings, Inc. ("TKH"), Takata's main U.S. subsidiary, and certain of TKH's subsidiaries and affiliates. =============== M A L A Y S I A =============== CAPITAL A: No Danajamin Loan After Top Duo Refuse to Be Guarantors ------------------------------------------------------------------ Malaysia Now reports that AirAsia Group Bhd, which recently rebranded itself as Capital A Bhd, on March 10 said that it is unable to proceed with its acquisition of a RM500 million club facility under Danajamin Nasional Bhd's Prihatin Guarantee Scheme as its founders will not act as guarantors. According to the report, Capital A said in a filing with Bursa Malaysia that it would not be proceeding with the club facility as it was unable to accept and/or fulfil certain conditions including a joint and several guarantee from Tony Fernandes and Kamarudin Meranun. It also said that it could not meet Danajamin's requirement for a regularisation plan and obtain approval to remedy its consolidated shareholder equity to above RM40 million and 25% of its share capital exclusing treasury shares, or to obtain an extension of time to provide the regularisation plan from Bursa Malaysia for the matching tenure of the Danajamin club facility, Malaysia Now relays. "Capital A is exploring other available debt financing alternatives with acceptable terms suitable to the operations and financing requirements of the company," it said. Malaysia Now notes that Capital A as AirAsia received approval from Danajamin on Oct. 5 for an 80% guaranteed loan of up to RM500 million under its Danajamin Prihatin Guarantee scheme. This was part of the government's economic stimulus packages to cushion the impact of the Covid-19 pandemic. AirAsia was classified as PN17 on Jan. 13 after Bursa Malaysia dismissed its appeal to extend by 18 months its clearance period ending Jan. 7. Speaking on Jan. 28 at the launch of Capital A, though, Mr. Fernandes brushed aside the label, calling it "an accounting issue," Malaysia Now recalls. "The solution has nothing to do with liquidity," he said, notes the report. "PN17 was caused by a lease which we never paid, so it shouldn't be in the profits and losses. "It's related to accounting and structuring, which mentions the consolidation of a RM5 billion deficit. If you remove these two factors, we would not be classified as PN17." About Capital A Capital A Bhd, formerly known as AirAsia Group Bhd, provides low-cost air carrier service. The company provides services on short-haul, point-to-point domestic and international routes. AirAsia, headquartered in Malaysia, operates from hubs in Malaysia, Thailand, Indonesia, Philippines and India. The airline's Malaysia and Thailand operations are undertaken via AirAsia Bhd and Thai AirAsia Co Ltd while AirAsia Group's Indonesia and Philippines operations are managed under PT Indonesia AirAsia and Philippines AirAsia Inc. As reported in the Troubled Company Reporter-Asia Pacific on Jan. 18, 2022, AirAsia Group Bhd (AAGB) is in the midst of formulating a plan to regularize its financial condition to address its Practice Note 17 (PN17) status. According to The Star, Bursa Malaysia on Jan. 13 dismissed AAGB's appeal seeking to extend an 18-month relief period from being classified as a PN17 company that ended on Jan. 7, 2022. AirAsia triggered the PN17 suspended criteria in July 2020 after its external auditors, Ernst & Young PLT, issued an unqualified audit opinion with material uncertainty relating to going concern in respect of its audited financial statements for the financial year ended Dec. 31, 2019 (FY19) and its shareholders' equity on a consolidated basis was 50% or less of its share capital. AirAsia also triggered the prescribed criteria pursuant to Paragraph 8.04 and Paragraph 2.1(a) of PN17 of Bursa's Main Market Listing Requirements (Main LR), where AirAsia's shareholders' equity on a consolidated basis was 25% or less of its share capital and the shareholders' equity is less than MYR40 million based on the audited financial statements for FY20. Following relief measures introduced by Bursa and the Securities Commission Malaysia, AirAsia was not classified as a PN17 listed issuer and was not required to comply with the obligations under Paragraph 8.04 and PN17 of the Main LR for a period of 18 months from the date of the first relief announcement, theedgemarkets.com said. The date of the first relief announcement was July 8, 2020, and the 18-month period ended on Jan. 7, 2022. Under the relief measures, companies that triggered any of the suspended criteria between April 17, 2020 and June 30, 2021, would not be classified as a PN17 and Guidance Note 3 (GN3) company for 12 months. ===================== N E W Z E A L A N D ===================== CLOUD M: Creditors' Proofs of Debt Due April 15 ----------------------------------------------- Creditors of Cloud M Limited, which is in voluntary liquidation, are required to file their proofs of debt by April 15, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on March 8, 2022. The company's liquidators can be reached at: Rachel Mason-Thomas Jeffrey Philip Meltzer Meltzer Mason, Chartered Accountants PO Box 6302 Victoria Street West, Auckland 1141 CO CONTRACTING: Court to Hear Wind-Up Petition on April 7 --------------------------------------------------------- A petition to wind up the operations of Co Contracting Limited will be heard before the High Court at Christchurch on April 7, 2022, at 10:00 a.m. Isaac Construction Limited filed the petition against the company on Dec. 2, 2021. The Petitioner's solicitor is: Grant Lewis Wilkin Crown Collections Limited 9 Good Street Rangiora 7440, Canterbury NORTH AUCKLAND: Creditors' Proofs of Debt Due April 13 ------------------------------------------------------ Creditors of North Auckland Steel Fixers Limited, which is in voluntary liquidation, are required to file their proofs of debt by April 13, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on March 9, 2022. The company's liquidators can be reached at: Iain Bruce Shephard Jessica Jane Kellow BDO Wellington, Business Restructuring Level 1, 50 Customhouse Quay Wellington 6011 REX CONSTRUCTION: Creditors' Proofs of Debt Due April 19 -------------------------------------------------------- Creditors of Rex Construction Limited, which is in voluntary liquidation, are required to file their proofs of debt by April 9, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on March 7, 2022. The company's liquidator can be reached at: Brenton Hunt PO Box 13400, City East Christchurch 8141 WESTERN COMPASS: Court to Hear Wind-Up Petition on May 6 -------------------------------------------------------- A petition to wind up the operations of Western Compass Properties Limited will be heard before the High Court at Auckland on May 6, 2022, at 10:00 a.m. Russell McVeagh filed the petition against the company on Jan. 26, 2022. The Petitioner's solicitor is: Matthew Kersey Level 30, Vero Centre 48 Shortland Street, Auckland ================= S I N G A P O R E ================= ALPHA DX: Receives Compliance Notice After 4 Directors Quit ----------------------------------------------------------- The Business Times reports that the Singapore Exchange Regulation (SGX RegCo) has issued a notice of compliance to learning-solutions company Alpha DX Group after 4 directors of the firm quit over the span of just 2 weeks. Under SGX RegCo's directives, Alpha DX will have to obtain and disclose "detailed explanations" from each of the 4 directors who have resigned - namely Chang Chi Hsung, Max Ng Chee Weng, Chew Yean Nee and Fabian Sven Bahadur Scheler - by March 16, BT says. BT relates that these explanations should include the detailed reasons for their resignation, whether there are any other material reasons or concerns behind the resignation, actions taken by each of these former independent directors in relation to areas of concerns that resulted in their resignations, as well as why each director considered it proper and appropriate to resign at this particular juncture. According to the report, Alpha DX is in the middle of responding to SGX RegCo's queries, and the board of directors is assessing the group's ability to operate as a going concern, noted the bourse regulator. Based on the responses to be provided by each of these directors, SGX RegCo said it will make an assessment of the suitability of each of these individuals for the appointment as a director or executive officer for any issuer listed on the Singapore Exchange. BT says SGX RegCo also ordered Alpha DX to appoint new independent directors to its board, but said that the company is required to obtain prior approval from SGX for such appointments. With these 4 resignations, the company only has 3 remaining directors, including an independent director. Its audit committee does not have any members presently, the report notes. BT adds that SGX RegCo also said trading in the company's shares should be suspended until there is clarity on its affairs, including the ability to operate as a going concern. The regulator also asked the company to respond to the queries it had earlier issued by March 14. BT says SGX RegCo noted that there have been a string of events after the company's shares resumed trading on June 8, 2021. Prior to this, trading of Alpha DX shares was suspended in November 2019 due to going concern issues. Among other things, Alpha DX had received a letter of demand dated Feb. 18 from Kydon Holdings regarding the payment of SGD1,900,937.75 for the remaining consideration and interest charges linked to the acquisition of equity interest in Zionext, while PrimePartners Corporate Finance (PPCF) had on March 1 terminated its continuing sponsorship agreement with the firm, BT discloses. According to the report, the company said on March 2 that it had received a writ of summons and statement of claim filed in the High Court by PrimePartners Corporate Finance for the sum of SGD604,844.76 in unpaid sums payable under agreements between the 2 companies, and SGD111,789.75 for late interest charges. BT relates that SGX RegCo said that where warranted, it may issue further directives to Alpha DX to further look into any areas of concern or to take appropriate regulatory actions. In a bourse filing on March 10, Alpha DX said it has requested for a trading suspension, until there is "clarity on the affairs in the company", including its ability to operate as a going concern, BT reports. Alpha DX also said that it had on March 9 made an application to Singapore's High Court for the grant of a moratorium under Section 64 of the Insolvency Restructuring and Dissolution Act, and will update shareholders on the status of the moratorium in due course, BT relays. The company added that it is in the process of identifying potential candidates to be appointed as independent directors to its board, BT notes. Singapore-based Alpha DX Group Ltd operates as a holding company. The Company, through its subsidiaries, engages in providing digital transformation services in the learning and educational sectors. Alpha DX Group serves clients worldwide. EAGLE HOSPITALITY: Seeks Recognition of Liquidation Order for Units ------------------------------------------------------------------- The Business Times reports that a Singapore court application has been filed for the recognition of the order issued by the United States Bankruptcy Court to liquidate Eagle Hospitality Trust's (EHT) entities. EHT is a stapled trust comprising Eagle Hospitality Reit (EH-Reit) and the currently dormant Eagle Hospitality Business Trust (EH-BT). In October last year, EHT's units in the US had filed for liquidation, with the trust's bank lenders set to mop up the bulk of the proceeds. Under the confirmed Chapter 11 plan, the liquidation trustee will be authorised to dissolve the entities, other than EH-Reit and the Singapore entities Eagle Hospitality Trust S1 and Eagle Hospitality Trust S2, BT relays. Meanwhile, the Reit trustee will be authorised to dissolve EH-Reit, Eagle Hospitality Trust S1 and Eagle Hospitality Trust S2. According to the report, the application to the Singapore High Court sought for the recognition of the liquidating trustee as a foreign representative of the Singapore Chapter 11 entities and for the liquidating trustee to be entrusted with the administration and realisation of all or any part of the property and assets of the entities in Singapore, said DBS Trustee, in its capacity as trustee of EH-Reit on Friday (March 11). It is also seeking the authorisation of the Reit trustee to take all appropriate and necessary steps to wind down the Singapore Chapter 11 entities in accordance with and subject to Singapore law, and perform other duties and obligations as set out under the confirmed plan, BT relates. A pre-trial conference for the court application has been fixed on March 24 at 2:30 p.m., BT discloses. The date for the substantive hearing has yet to be fixed. Stapled securityholders who intend to attend the substantive hearing or object to the application should inform solicitors of the liquidating trustee by March 21, BT adds. 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. EZION HOLDINGS: Creditors' Meeting Set for March 22 --------------------------------------------------- Ezion Holdings Limited will hold a meeting for its creditors on March 22, 2022, at 2:00 p.m., through electronic means. Agenda of the meeting includes: a. to provide an update to creditors on the status of liquidation of the Company; b. to appoint a committee of inspection, if thought fit; and c. to discuss other business. The company's liquidators can be reached: Ng Kian Kiat Goh Wee Teck c/o 8 Wilkie Road #03-08, Wilkie Edge Singapore 228095 LEBARA MEDIA: Commences Wind-Up Proceedings ------------------------------------------- Members of Lebara Media Singapore Pte. Limited on March 7, 2022, passed a resolution to voluntarily wind up the company's operations. The company's liquidator is: Jason Kardachi Kroll Pte. Limited One Raffles Place, Tower 2 #10-62 Singapore 048616 PRECISION SPINE: Nexia TS Appointed as Liquidators -------------------------------------------------- Mr. Chan Yee Hong of Nexia TS Risk Advisory on March 8, 2022, was appointed as liquidator of Precision Spine Pte Ltd. The liquidator may be reached at: Mr. Chan Yee Hong Nexia TS Risk Advisory 80 Robinson Road, #25-00 Singapore 068898 TRUST-LINK FREIGHT: Court Enters Wind-Up Order ---------------------------------------------- The High Court of Singapore entered an order on Feb. 25, 2022, to wind up the operations of Trust-Link Freight & Trade Pte. Ltd. Trust-Link Logistics Pt. Ltd. filed the petition against the company. The company's liquidators are: Lim Soh Yen Tee Wey Lih c/o Acutus Advisory Pte. Ltd. 133 New Bridge Road #24-01/02 Chinatown Point Singapore 059413 XIHE HOLDINGS: Court to Hear Wind-Up Petition on March 24 --------------------------------------------------------- A petition to wind up the operations of Xihe Holdings (Pte) Ltd will be heard before the High Court of Singapore on March 24, 2022, at 10:00 a.m. Seshadri Rajagopalan and Paresh Tribhovan Jotangia of Grant Thornton Singapore (the judicial managers of the company) filed the petition on Feb. 18, 2022. The Petitioner's solicitors are: WongPartnership LLP 12 Marina Boulevard Level 28, Marina Bay Financial Centre Tower 3 Singapore 018982 ********* 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 2022. 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 ***