/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/220404.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, April 4, 2022, Vol. 25, No. 61 Headlines A U S T R A L I A ADRIAN'S METAL: Rodgers Reidy Appointed as Administrator DEWPOINT AIR: Second Creditors' Meeting Set for April 8 LIBERTY SERIES 2018-1: Moody's Ups Rating on Class F Notes to Ba1 MARTIN BALL: First Creditors' Meeting Set for April 11 C H I N A AGILE GROUP: Moody's Lowers CFR to B2, On Review for Downgrade DEXIN CHINA: Moody's Alters Outlook on 'B2' CFR to Negative LANZHOU CONSTRUCTION: Moody's Cuts CFR to B1, On Further Review LIUZHOU DONGTONG: Fitch Lowers LT IDRs to 'B+', Outlook Stable MGM CHINA: Moody's Lowers Sr. Unsecured Notes to B1, Outlook Neg. H O N G K O N G [*] Trading in Over 30 HK-Listed Firms Halted on Results Delay I N D I A ADVANCE CROPCARE: Ind-Ra Assigns BB- Long-Term Issuer Rating AMBICA COATSPIN: Ind-Ra Assigns 'BB+' Long-Term Issuer Rating AMERICAN FEED: CRISIL Migrates B Debt Ratings to Not Cooperating APR CONSTRUCTION: Ind-Ra Moves BB+ Issuer Rating to Non-Cooperating ARYAN ISPAT: Ind-Ra Affirms 'D' Long-Term Issuer Rating ATHARVA AUTO: Insolvency Resolution Process Case Summary BELGAUM WIND: Ind-Ra Keeps B+ Bank Loan Rating in Non-Cooperating BHAFRA SPIRITS: Voluntary Liquidation Process Case Summary BIPICO INDUSTRIES: Ind-Ra Moves B+ Issuer Rating to Non-Cooperating BLUE STAR: CRISIL Migrates D Debt Rating to Not Cooperating CAMERICH PAPERS: Ind-Ra Moves 'D' Issuer Rating to Non-Cooperating CHIDANAND BASAPRABHU: Ind-Ra Hikes Long-Term Issuer Rating to 'BB' DIVYAM DEVELOPERS: Insolvency Resolution Process Case Summary FUTURE RETAIL: Reliance Defends Takeover of Future Stores GES INFOTEK PRIVATE: Voluntary Liquidation Process Case Summary GUNA POULTRY: CRISIL Moves B+ Debt Rating to Not Cooperating HYQUIP SYSTEMS: Ind-Ra Keeps B- Issuer Rating in Non-Cooperating JAI HANUMAN: CRISIL Keeps D Debt Ratings to Not Cooperating JALNA SIDDHIVINAYAK: CRISIL Moves D Ratings to Not Cooperating KANCHESHWAR SUGAR: CRISIL Moves D Debt Ratings to Not Cooperating KAYCEE INDUSTRIES: CRISIL Withdraws D Rating on INR7.5cr Loan KHWAHISH MARKETING: CRISIL Keeps D Ratings to Not Cooperating MAHAK SYNTHETIC: Ind-Ra Assigns 'BB+' Long-Term Issuer Rating MAHALAKSHMI COLD: CRISIL Moves B+ Debt Ratings to Not Cooperating MANAS GEO: CRISIL Moves B+ Debt Ratings to Not Cooperating MICRO DYNAMICS: Insolvency Resolution Process Case Summary MODERN SYNTEX: Insolvency Resolution Process Case Summary MOOG EM SOLUTIONS: Voluntary Liquidation Process Case Summary MYTRAH ENERGY: Ind-Ra Lowers Long-Term Issuer Rating to 'D' NORTH KERALA FOORTWEAR: Voluntary Liquidation Process Case Summary PREMSONS AND PODDARS: CRISIL Moves B+ Ratings to Not Cooperating RA FASHIONS: CRISIL Keeps D Debt Ratings in Not Cooperating RAJ BREEDERS: CRISIL Keeps D Debt Ratings in Not Cooperating RAJAMANICKAM POULTRY: CRISIL Moves B+ Rating to Not Cooperating RANI SATI: CRISIL Keeps B Debt Ratings in Not Cooperating REKHA CORPORATION: Ind-Ra Moves 'BB-' Rating to Non-Cooperating RKB GLOBAL: Ind-Ra Lowers Long-Term Issuer Rating to 'D' SANTASHA REAL: NCLT Orders Start of Insolvency Proceedings SATYASAI OIL: CRISIL Lowers Rating on INR8.8cr Cash Loan to B SEKISUI CHEMICAL: Voluntary Liquidation Process Case Summary SHITALPUR MOHINDER: CRISIL Withdraws B+ Rating on INR6.50cr Loan SHREEDHAR SPINNERS: Ind-Ra Gives BB Issuer Rating, Outlook Stable SIDDHIVINAYAK COTFAB: Ind-Ra Assigns 'BB+' Long-Term Issuer Rating SIPL TEXTILES: CRISIL Keeps D Debt Ratings in Not Cooperating SJV TEXTILE: CRISIL Moves B+ Debt Ratings to Not Cooperating SOUTHCO UTILITY: Ind-Ra Withdraws BB- Issuer Rating on INR720MM SPACK LAMINATORS: CRISIL Keeps B+ Debt Ratings in Not Cooperating SREEKARA ORGANICS: Ind-Ra Moves BB Issuer Rating to Non-Cooperating SRIKARA PARENTERALS: CRISIL Keeps D Ratings in Not Cooperating STAR BATTERY: CRISIL Keeps B+ Debt Rating in Not Cooperating SUDHEER BUILDERS: CRISIL Keeps B+ Debt Rating in Not Cooperating SUSHEEL ENGINEERS: CRISIL Keeps D Debt Rating in Not Cooperating SWADESHI TEXTILES: CRISIL Lowers Rating on INR10cr Loan to B TARA HEALTH: CRISIL Keeps D Debt Ratings in Not Cooperating TECHNO POWER: CRISIL Keeps B Debt Ratings in Not Cooperating UNDAVALLI CONSTRUCTIONS: Ind-Ra Moves BB+ Rating to Non-Cooperating ZIMIDARA PESTICIDES: CRISIL Moves B Rating to Not Cooperating J A P A N TOSHIBA: Bain Sounded Out Other Shareholders About Potential Offer M A C A U MACAO GOLDEN: Gambling Junket Operator Shuts Down M A L A Y S I A SAPURA ENERGY: Gets Deferment to Service MYR10.3-Bil. Facilities N E W Z E A L A N D BARMADE LIMITED: Creditors' Proofs of Debt Due on May 13 LHD MEDIA: Creditors' Proofs of Debt Due on May 30 OTAGO HOMES: Creditors' Proofs of Debt Due on May 30 REMARKABLE EXQUISITE: Creditors' Proofs of Debt Due on April 30 S I N G A P O R E ATLANTIC LABRADOR: Commences Wind-Up Proceedings IBC CAPITAL: Moody's Lowers CFR to B3, Outlook Negative PROLAND E&C: Placed in Provisional Liquidation SEA SOLUTIONS: Court to Hear Wind-Up Petition on April 22 SHINNPARK PTE: Placed in Provisional Liquidation VIKING 5050: Creditors' Proofs of Debt Due on May 4 S O U T H K O R E A SSANGYONG MOTOR: External Auditor Rejects 2021 Financial Report - - - - - ================= A U S T R A L I A ================= ADRIAN'S METAL: Rodgers Reidy Appointed as Administrator -------------------------------------------------------- David James Hambleton of Rodgers Reidy on March 31, 2022, was appointed as administrator of Adrian's Metal Management Pty Ltd, trading as Adrian's Scrap Metal and Jims Scrap Metal. DEWPOINT AIR: Second Creditors' Meeting Set for April 8 ------------------------------------------------------- A second meeting of creditors in the proceedings of Dewpoint Air & Energy Pty Ltd and Dewpoint Service Nsw Pty Ltd (previously trading as an entity of The Dewpoint Group) has been set for April 8, 2022, at 10:30 p.m. via electronic means only. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by April 7, 2022, at 5:00 p.m. Terry Grant Van der Velde and David Michael Stimpson of SV Partners were appointed as administrators of Dewpoint Air on March 4, 2022. LIBERTY SERIES 2018-1: Moody's Ups Rating on Class F Notes to Ba1 ----------------------------------------------------------------- Moody's Investors Service has upgraded the ratings on five classes of notes issued by Liberty Series 2018-1 Auto. The affected ratings are as follows: Issuer: Liberty Series 2018-1 Auto Class B Notes, Upgraded to Aaa (sf); previously on Dec 12, 2018 Definitive Rating Assigned Aa1 (sf) Class C Notes, Upgraded to Aa2 (sf); previously on Dec 12, 2018 Definitive Rating Assigned A1 (sf) Class D Notes, Upgraded to A3 (sf); previously on Jul 6, 2021 Upgraded to Baa1 (sf) Class E Notes, Upgraded to Baa3 (sf); previously on Jul 6, 2021 Upgraded to Ba1 (sf) Class F Notes, Upgraded to Ba1 (sf); previously on Dec 12, 2018 Definitive Rating Assigned Ba3 (sf) RATINGS RATIONALE The upgrades were prompted by an increase in note subordination available for the affected notes and performance of the underlying portfolio to date. Following the February 2022 payment date, the note subordination available for the Class B, Class C and Class F Notes has increased to 34%, 22.8% and 4.1% respectively, from 21%, 13.5% and 1% at closing. Note subordination available for the Class D and Class E Notes has increased to 15% and 7.1% respectively, from 13.7% and 5.6% at the time of the last rating action for these notes in July 2021. As of end-February, 8.7% of the outstanding pool was 30-plus day delinquent and 4.9% was 90-plus day delinquent. The portfolio has incurred defaults and losses of 3.1% and 1.4% (as a percentage of the original note balance) to date. All losses have been covered by excess spread. Based on the observed performance to date and loan attributes, Moody's has lowered its expected default assumption to 6.25% as a percentage of the current note balance (equivalent to 4.6% as a percentage of original note balance) compared with 6.75% as of the last rating action in July 2021. Moody's has also lowered the Aaa portfolio credit enhancement to 26% from 28%. The transaction is a securitisation of a portfolio of Australian consumer auto loans, secured by motor vehicles, originated by Liberty Financial Pty Ltd. The principal methodology used in these ratings was "Moody's Global Approach to Rating Auto Loan- and Lease-Backed ABS" published in September 2021. Factors that would lead to an upgrade or downgrade of the ratings: Factors that could lead to an upgrade of the ratings include (1) performance of the underlying collateral that is better than Moody's expectations, and (2) an increase in the notes' available credit enhancement. Factors that could lead to a downgrade of the ratings include (1) performance of the underlying collateral that is worse than Moody's expectations, (2) a decrease in the notes' available credit enhancement, and (3) a deterioration in the credit quality of the transaction counterparties. MARTIN BALL: First Creditors' Meeting Set for April 11 ------------------------------------------------------ A first meeting of the creditors in the proceedings of Martin Ball Holdings Pty Limited will be held on April 11, 2022, at 3:00 p.m. via Zoom. Atle Crowe-Maxwell of DBA Advisory was appointed as administrator of Martin Ball on March 30, 2022. ========= C H I N A ========= AGILE GROUP: Moody's Lowers CFR to B2, On Review for Downgrade -------------------------------------------------------------- Moody's Investors Service has downgraded Agile Group Holdings Limited's corporate family rating to B2 from B1 and its senior unsecured rating to B3 from B2. Moody's has also placed the ratings on review for further downgrade. The previous rating outlook was negative. "The downgrade reflects Moody's concerns over Agile's increased refinancing uncertainties and governance risks following its recent announcement of a delay in reporting its 2021 audited financials," says Kaven Tsang, a Moody's Senior Vice President. "The review for downgrade reflects the uncertainty over Agile's ability (1) to raise new funding, through new borrowing or asset disposals, to manage its refinancing needs in the next 6-12 months, and (2) to publish audited financial statements in a timely manner," adds Tsang. RATINGS RATIONALE On March 29, 2022, Agile announced that it will not publish its audited financials by March 31, 2022 [1]. However, the company said it will publish its annual unaudited preliminary financial results on March 31, 2022. The company also expects to publish its audited financial results by May 15, 2022. Moody's views that Agile's delay in its audited results announcement raises concerns over the company's corporate transparency and information disclosure. It could also worsen Agile's ability to raise new funding, and thereby, increase its liquidity and refinancing risks over the next 6-12 months in view of the company's sizable refinancing needs for its offshore bonds and bank loans in the next 6-12 months. Specifically, the company will have around USD600 million in offshore bonds coming due in August 2022. Agile had unrestricted cash of RMB46.5 billion as of June 30, 2021. However, Moody's expects the amount to have declined considerably as of the end of 2021. The rating agency also believes the company will not likely use all the cash to repay its debt as it has to keep a considerable amount at the project and operating companies' levels for operations. Agile's access to the offshore funding channels has weakened, as reflected by its weak bond prices and offshore financiers' increased risk aversion toward the Chinese property sector. Agile has been actively raising funds through asset disposals and exchangeable bond issuances over the past 3-6 months that would address part of its maturing debt in the next 6-12 months. However, the timing of further asset disposals to repay debt and improve liquidity is uncertain in view of the currently weak market sentiment and tight funding conditions. Potential buyers could also delay their purchases until the company publishes its audited financial statements to avoid contingent liabilities associated with the transactions. Agile's senior unsecured bond rating is one notch lower than its CFR because of the risk of structural subordination. This subordination risk reflects the fact that most of Agile's claims are at the operating subsidiaries and have priority over claims at the holding company in a bankruptcy scenario. In addition, the holding company lacks significant mitigating factors for structural subordination. As a result, the expected recovery rate for claims at the holding company will be lower. In terms of environmental, social and governance factors, Moody's has considered Agile's concentrated ownership by its key shareholder, the Chen family, who held a total stake of 66.3% in the company as of the end of June 2021. The delay in the release of audited financial results raises concerns over the company's transparency and information disclosure, which is part of Moody's governance considerations. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's review will focus on assessing (1) the timeliness and quality of Agile's 2021 full-year audited financial statements; (2) any further impact on its access to funding; and (3) its general corporate governance practice. The rating agency could confirm the ratings if Agile discloses its 2021 audited accounts in a timely manner without any adverse financial trends, the company's operations proved to be resilient, and its liquidity remained adequate amid difficult operating and funding conditions. On the other hand, Moody's could downgrade Agile's ratings if the company is not able to publish its 2021 annual audited results on a timely basis, or there are signs of weakening in its liquidity, credit metrics or general governance practice. The principal methodology used in these ratings was Homebuilding And Property Development Industry published in January 2018. Agile Group Holdings Limited (Agile) is one of China's major property developers. As of June 30, 2021, the company had a land bank with a planned gross floor area (GFA) of 53 million square meters (sqm). DEXIN CHINA: Moody's Alters Outlook on 'B2' CFR to Negative ----------------------------------------------------------- Moody's Investors Service has revised Dexin China Holdings Company Limited's rating outlook to negative from stable. At the same time, Moody's has affirmed Dexin's B2 corporate family rating and B3 senior unsecured debt ratings. "The change to a negative outlook reflects Dexin's weakened transparency and information disclosure following its announced delay in publishing audited financials, which could adversely affect its access to funding," says Alfred Hui, a Moody's Analyst. The negative outlook also reflects uncertainty over Dexin's ability to publish audited financial statements in a timely manner. "However, the rating affirmation reflects our expectation that Dexin will maintain its adequate liquidity and disciplined financial management over the next 6-12 months," adds Hui. RATINGS RATIONALE On March 29, 2022, Dexin announced that it is unlikely to publish its audited financials by March 31, 2022[1]. However, the company published its annual unaudited preliminary financial results on March 31, 2022. Moody's views that the delay in result announcement raises concerns over the company's corporate transparency and information disclosure. It could also weaken Dexin's fundraising ability to support its business operations and refinancing. Nevertheless, Moody's expects Dexin to maintain adequate liquidity. The company reported a total unaudited cash balance of RMB17.6 billion as of the end of 2021, including RMB5.8 billion guaranteed deposits for the construction of pre-sold properties and a RMB1.4 billion guaranteed deposit for bank borrowings and bank acceptance notes. Although part of the cash would have to be kept at the project level to support its operations, Dexin will have sufficient internal resources to meet its obligations and debt repayment needs in the next 6-12 months, including $200 million of offshore bonds due in April 2022 and $348 million of offshore bonds due in December 2022. Dexin's B2 CFR reflects the company's established operations in property development in Zhejiang province, its good-quality land bank in tier 2 and peripheral cities, and high exposure to joint ventures. Moody's also expects Dexin to exercise financial discipline in executing its business plans and control its land acquisition spending amid difficult operating and funding conditions. Dexin's senior unsecured bond rating is one notch lower than its CFR because of the risk of structural subordination. This subordination risk reflects the fact that most of Dexin's claims are at the operating subsidiaries and have priority over claims at the holding company in a bankruptcy scenario. In addition, the holding company lacks significant mitigating factors for structural subordination. As a result, the expected recovery rate for claims at the holding company will be lower. In terms of environmental, social and governance factors, Moody's has considered Dexin's concentrated ownership by its key shareholder and Chairman, Mr. Hu Yiping, who held a total stake of 70% in the company as of the end of June 2021. The delay in the release of audited financial results raises concerns over the company's corporate transparency and information disclosure, which is part of Moody's governance considerations. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Given the negative outlook, a rating upgrade is unlikely. However, Moody's could return the rating outlook to stable if Dexin discloses its 2021 audited accounts in a timely manner without any adverse financial trends, the company's operations proved to be resilient, and its liquidity remained adequate amid difficult operating and funding conditions. On the other hand, Moody's could downgrade Dexin's ratings if the company is not able to publish its 2021 annual audited results on a timely basis, or there are signs of weakening in its liquidity, credit metrics or general governance practice. The principal methodology used in these ratings was Homebuilding And Property Development Industry published in January 2018. Dexin China Holdings Company Limited is a Zhejiang-based residential property developer. As of December 31, 2021, its land reserves totaled 19.1 million square meters in gross floor area, with most of them in Yangtze River Delta, in cities such as Hangzhou, Wenzhou, Ningbo and Nanjing. LANZHOU CONSTRUCTION: Moody's Cuts CFR to B1, On Further Review --------------------------------------------------------------- Moody's Investors Service has downgraded to B1 from Ba2 the corporate family rating of Lanzhou Construction Investment (Holding) Group Co., Ltd. (Lanzhou Construction) and the senior unsecured rating on the bonds issued by City Development Company of Lan Zhou and guaranteed by Lanzhou Construction. The ratings are under review for further downgrade. At the same time, Moody's has revised the rating outlook of both to rating under review from negative. "The downgrade reflects Lanzhou Construction's weak debt management and heightened refinancing risks, given the company's tight funding access and substantial amount of debts due in the rest of 2022," says Ying Wang, a Moody's Vice President and Senior Analyst. The rating review reflects the uncertainties around the company's ability to stabilize its liquidity profile and re-establish its access to funding in next three to six months. RATINGS RATIONALE Lanzhou Construction's access to funding remains very limited, given the continued risk aversion among investors toward local government financing vehicles (LGFVs) in less developed regions. In 2021, issuances and net financing from such LGFVs declined in the onshore bond market, despite a record onshore bond issuance by the LGFV sector. It will therefore be challenging for Lanzhou Construction to issue new debt from the onshore bond market. Meanwhile, the company faces sizable maturing debts, including around RMB11.6 billion in bonds that will come due in the rest of 2022. Consequently, Moody's expects Lanzhou Construction will mainly rely on the Lanzhou city government and Gansu provincial government to mobilize resources, including the Emergency Fund set up at the city-level and provincial-level governments for its debt repayment in the short term. Moody's believes the Lanzhou city government and the Gansu provincial government have strong incentive to support Lanzhou Construction's liquidity needs, given that the company is the dominant LGFV in Lanzhou city that provides essential public services and develops public infrastructure projects, and one of the largest onshore bond issuers from the province. Nevertheless, there is execution risk associated with timeliness and adequacy of government support. Moody's also estimates that Lanzhou Construction's debt management is weak, as reflected by the company's concentrated debt maturity in the short term and lack of meaningful progress in addressing its intensifying refinancing pressure and difficulties in access to funding in the past six months. Lanzhou Construction's B1 rating is based on the Lanzhou city government's GCS score of baa3 and Moody's assessment of how the company's characteristics affect the Lanzhou city government's propensity to support, which results in a four-notch downward adjustment. Moody's assessment of Lanzhou's GCS reflects Lanzhou city's status as the capital of Gansu province, the city's relatively weak economic and fiscal metrics, the constraints faced by its local financial sector, and the limited disclosure requirements for local SOEs, which prevent a complete assessment of the contingent liability risks that could affect the city's capacity to provide support. The B1 rating also reflects the Lanzhou city government's propensity to support Lanzhou Construction because of its 100% ownership of the company, the company's status as the dominant LGFV that provides essential public services in the city, and its track record of receiving government cash payments. However, the four-notch downward adjustment from the Lanzhou government's GCS score reflects Lanzhou Construction's heightened refinancing risks, given its tight funding access, weak debt management and the contingent risk arising from the external guarantees it has provided to other companies. Lanzhou Construction's rating also considers the following environmental, social and governance (ESG) factors. The company bears high social risks as it implements public-policy initiatives by building public infrastructure in Lanzhou. Demographic changes, public awareness and social priorities shape the company's development targets and ultimately affect the Lanzhou city government's propensity to support the company. As for governance considerations, Lanzhou Construction is subject to oversight by the Lanzhou city government and has to meet several reporting requirements, reflecting its public-policy role and status as a government-owned entity. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's review will focus on Lanzhou Construction's progress in addressing its mounting debt obligations in the coming months and access to funding, as well as the timeliness of the company receiving government cash payments. Moody's could downgrade the rating if Lanzhou Construction fails to receive sufficient support from the government or other solid financing arrangements to meet its refinancing needs, or if its access to funding further deteriorates, thereby further weakening its liquidity profile. The rating could also be downgraded if the Lanzhou city government's propensity to support weakens because of changes in Lanzhou Construction's characteristics, such as (1) a decline in the company's position as the dominant public service provider in Lanzhou city; (2) a substantial expansion of its commercial activities at the cost of its public service functionalities, which changes its core business, or substantial losses by its commercial businesses; or (3) its debt and leverage rapidly increase, with fewer corresponding government payments. Given that Lanzhou Construction's rating is based on the Lanzhou city government's GCS score, Moody's could downgrade the rating if (1) China's sovereign rating is downgraded, or (2) the Lanzhou city government's capacity to support weakens, which could arise from a material worsening of the city government's economic or financial profile or its ability to coordinate timely support. Changes in the Chinese government's policies that prohibit regional and local governments from supporting their LGFVs will also affect the rating. An upgrade of the ratings is unlikely, given the review for downgrade. However, Moody's could confirm the rating if Lanzhou Construction alleviates its high liquidity pressure and strengthens its funding access. The principal methodology used in these ratings was Local Government Financing Vehicles in China Methodology published in July 2020. Established in 2016, Lanzhou Construction Investment (Holding) Group Co., Ltd. is 100% owned by the Lanzhou State-owned Asset Supervision and Administration Commission through a parent intermediary, Lanzhou Investment (Holdings) Group Co., Ltd. The company mainly engages in urban infrastructure construction, shantytown redevelopment, utilities, public services and transportation in Lanzhou city. LIUZHOU DONGTONG: Fitch Lowers LT IDRs to 'B+', Outlook Stable -------------------------------------------------------------- Fitch Ratings has downgraded China-based Liuzhou Dongtong Investment & Development Co., Ltd.'s (LDI) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) to 'B+' from 'BB-'. The Outlook is Stable. Fitch has also downgraded the ratings on LDI's USD180 million 7% senior unsecured bonds due 2022 to 'B+' from 'BB-'. The downgrade reflects Fitch's reassessment of LDI's Standalone Credit Profile (SCP) to 'b-' from 'b' on weak liquidity and high leverage. LDI had a negative liquidity cushion at end-2021, and Fitch estimates its leverage was over 50x in 2021. Fitch expects its leverage to remain at a high level in the next two years. KEY RATING DRIVERS SCP Revised Lower: The SCP was lowered to 'b-' under Fitch's Public Sector, Revenue-Supported Entities Rating Criteria. LDI's liquidity profile is assessed as 'Weaker' because of a weak liquidity cushion, which results in an asymmetric factor in Fitch's assessment of the SCP. LDI's cash at end-2021 was far below its short-term debt due in 2022. LDI's financial profile is assessed as 'Weaker' because of high leverage that Fitch expects to remain high in the next five years under Fitch's rating-case scenario. Fitch assesses revenue defensibility as 'Weaker', as the pricing of LDI's infrastructure projects is constrained by the government. Even so, LDI's revenue has remained stable in the past two years. Fitch assesses operating risk as 'Midrange', as the company has well-identified cost drivers with moderate volatility. 'Very Strong' Status, Ownership, Control: LDI is wholly controlled by the Liuzhou municipal government, which appoints its board members. Major events, including strategic development, acquisitions, disposals and large capex, require government approval. The government also monitors the company's operational and financing activities. 'Strong' Support Record and Expectations: LDI is a major government-related entity (GRE) with a solid government support record. The company has received asset and capital injections of around CNY20 billion from the government over the past few years, which accounted for 34% of its total assets at end-2020. In addition, the government provided a large amount of funding to LDI in 2021 to support LDI's ability to pay interest and debt. Fitch assumes the government will continue to provide support and takes this into consideration in Fitch's rating case. 'Moderate' Socio-Political Implications of Default: LDI plays an important role in the city's social housing, primary land development and urban infrastructure construction. However, Fitch believes its default may not immediately disrupt its business activity and would only have a 'Moderate' socio-political impact on the municipal government, as other local GREs could substitute LDI's role. 'Moderate' Financial implications of Default: The company has a strong policy role, but the 'Moderate' assessment reflects Fitch's observation of a tightening of the company's debt market access in recent years, which may have contributed to a rise in its funding costs. In addition, the Liuzhou municipality has several urban developers and LDI's asset and debt levels are smaller in comparison, leading us to believe there would be 'Moderate' financial implications should LDI default. DERIVATION SUMMARY LDI's rating is derived from the four factors under Fitch's Government-Related Entities Rating Criteria, combined with the 'b-' SCP under Fitch's Public Sector, Revenue-Supported Entities Rating Criteria. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- An upward revision in Fitch's credit view of the Liuzhou municipality's ability to provide subsidies, grants or other legitimate resources allowed under China's policies and regulations; -- A stronger assessment of the government's support record and the socio-political and financial implications of a default; -- A stronger SCP; -- An upgrade in LDI's IDRs would lead to similar action on its US dollar notes. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- A lowering of Fitch's credit view of the Liuzhou municipality's ability to provide subsidies, grants or other legitimate resources allowed under China's policies and regulations; -- A significant weakening of the socio-political or financial implications of a default, a weaker government support record or a dilution of the government's shareholding or control; -- A weaker SCP; -- A downgrade of LDI's IDRs would lead to similar action on its US dollar notes. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Sovereigns, Public Finance and Infrastructure 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 three 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 LDI is the major GRE in Liuzhou and is mainly responsible for social housing, primary land development and urban infrastructure projects. The city is in Guangxi Zhuang Autonomous Region, southern China. 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. MGM CHINA: Moody's Lowers Sr. Unsecured Notes to B1, Outlook Neg. ----------------------------------------------------------------- Moody's Investors Service downgraded MGM Resorts International's ("MGM") Corporate Family Rating to B1 from Ba3 and Probability of Default Rating to B1-PD from Ba3-PD. The company's senior unsecured notes were downgraded to B1 from Ba3. MGM China Holdings Limited's ("MGM China") senior unsecured notes were also downgraded to B1 from Ba3. MGM China Holdings Limited is a 55.95% owned discretely financed publicly traded subsidiary of MGM Resorts International ("MGM"). MGM's Speculative-Grade Liquidity rating of SGL-2 is unchanged. The outlook for MGM is stable and the outlook for MGM China remains negative. The downgrade reflects the slow recovery in Macau and the high leverage level the company is expected to carry following a number of deals completed or to be completed soon, including the acquisition of 50% of CityCenter, transaction with VICI for the redemption of the company's MGM Growth Properties ("MGP") operating units (MGP will no longer be consolidated), as well as the announced acquisition of The Cosmopolitan of Las Vegas. The recovery in the company's regional and Las Vegas operations has been strong and Moody's expects good earnings at these operations will continue under Moody's baseline economic forecast. However, the earnings are not enough to offset Moody's view that the planned transactions are leveraging and that MGM will maintain leverage significantly above pre-pandemic levels. Leverage is expected to be maintained over 7x debt-to-EBITDA in 2023, above Moody's 6x downgrade threshold level. The following ratings/assessments are affected by the action: Ratings Downgraded: Issuer: MGM Resorts International Corporate Family Rating, Downgraded to B1 from Ba3 Probability of Default Rating, Downgraded to B1-PD from Ba3-PD Senior Unsecured Regular Bond/Debenture, Downgraded to B1 (LGD4) from Ba3 (LGD4) Issuer: MGM China Holdings Limited Senior Unsecured Regular Bond/Debenture, Downgraded to B1 (LGD4) from Ba3 (LGD4) Outlook Actions: Issuer: MGM Resorts International Outlook, Changed To Stable From Negative Issuer: MGM China Holdings Limited Outlook, Remains Negative RATINGS RATIONALE MGM's B1 CFR reflects the improvement in the company's regional and Las Vegas operations. The rating is supported by the company's large scale, a diversified presence on the Las Vegas Strip across multiple customer segments, a solid position within several regional markets that are leading the company's recovery, and its presence in the large Macau market with favorable long-term prospects. The rating is constrained by the company's high lease adjusted leverage which is expected to improve but remain high given the expected sizeable increase in leases associated with recent transactions and the pending divestiture of the company's stake in MGP. Continued weakness in Macau, including reduced visitation levels and gaming revenue, continues to weigh on the company. MGM's liquidity rating is SGL-2 reflecting good liquidity. As of December 31,2021, the company, excluding MGM China and MGM Growth Properties LLC, had $4.8 billion of cash and cash investment balances, and an undrawn $1.675 billion revolving credit facility due November 2026. As of December 31, 2021, MGM China had total liquidity of $1.689 billion, including $399 million of cash and $1.29 billion of revolver availability between its two MGM China revolvers. Moody's estimates the company will generate over $400 million of positive free cash flow for 2022. The expected EBITDA recovery has varied among the company's Las Vegas, Macau, and regional US properties, with regional and Las Vegas operations performing well, while Macau is still lagging in the recovery. The coronavirus outbreak and the government measures put in place to contain it continue to disrupt economies and credit markets across sectors and regions. Although an economic recovery is underway, continuation will be closely tied to containment of the virus. As a result, a degree of uncertainty around forecasts remains. Moody's regards the coronavirus outbreak as a social risk under Moody's ESG framework, given the substantial implications for public health and safety. The gaming sector has been one of the sectors most significantly affected by the shock given its sensitivity to consumer demand and sentiment. More specifically, MGM remains vulnerable to a renewed spread of the outbreak. MGM also remains exposed to discretionary consumer spending that leave it vulnerable to shifts in market sentiment in these unprecedented operating conditions. MGM has very highly negative (S-5) exposure to social risks driven by changing demographic and consumer preferences that do not favor traditional casino gaming and increasing competition from online gambling activities. MGM is also exposed to customer relation and responsible production risks because the gaming business is deemed to be attractive to criminals for money laundering activities and it is often associated to the cause of problem gambling. Responsible marketing is also necessary to minimize exposure to youth and the company needs to maintain effective practices to limit problem gaming risks. Gaming is a highly regulated industry, and compliance with regulations, including customer relations around anti-money laundering and know your customer initiatives, is paramount to maintain compliance and good licensing status. In many markets, gaming machine payouts are regulated, and significant state taxes are a precondition to licensure. Governance risks are moderately negative (G-3) and linked primarily to financial policy with some risk related to use of high leverage and shareholder distribution policies. These practices create risk by increasing vulnerability to reductions in cyclical discretionary consumer spending on gaming, and lead to development projects that are financed heavily with debt. There is moderate organization risk because the properties in Macau are not wholly owned (majority 56% ownership) and governed by a concessionaire that expires in 2022 though is expected to be renewed. MGM thus must manage the property in concert with local partners and distributions from the Macau properties are subject to cash leakage to minority partners. Debt issued at MGM China Holdings Limited has a structurally senior claim on the Macau assets relative to debt at MGM Resorts International. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The stable outlook for MGM Resorts International considers the recovery in the company's US regional and Las Vegas operations and margin improvement exhibited since reopening. The stable outlook also incorporates the company's good liquidity which incorporates substantial cash balances. MGM remains vulnerable to unfavorable sudden shifts in discretionary consumer spending and the uncertainty regarding the sustainable EBITDA margin and the pace at which consumer spending at its casinos will continue. The negative outlook on MGM China Holdings Limited reflects that prolonged and weaker recovery in Macau will keep leverage on the Macau operations elevated. MGM's ratings could be downgraded if there is a decline in EBITDA performance from factors such as volume pressures, higher operating costs or competition, liquidity deteriorates, or the company is unable to sustain debt-to-EBITDA on an LTM basis below 8x. MGM China Holdings Limited's rating could also be downgraded if the recovery in Macau continues to be weak and leverage at the entity remains elevated. MGM's ratings could be upgraded if the company generates consistent positive free cash flow, debt-to-EBITDA is sustained below 6.0x, and the company maintains a balanced financial policy with respect to shareholder returns, including share repurchases. The principal methodology used in these ratings was Gaming published in June 2021. MGM Resorts International owns and operates integrated casino resorts across the US and MGM Macau resort and casino and MGM Cotai, through its majority ownership stake of MGM China Holdings Limited. MGM also owns a 42% stake in MGM Growth Properties LLC (MGP), a real estate investment trust formed in April 2016, though the company is in the process of divesting its MGP stake. MGM has entered into a long-term triple net master lease with MGP pursuant to which the company leases and operates 14 properties. The company additionally leases the real estate assets of the Bellagio, Mandalay Bay and MGM Grand Las Vegas, as well as the real estate assets of Aria (including Vdara). Consolidated net revenue for the year ended December 31, 2021 was approximately $9.68 billion. ================= H O N G K O N G ================= [*] Trading in Over 30 HK-Listed Firms Halted on Results Delay -------------------------------------------------------------- Reuters reports that the Hong Kong stock exchange suspended from trade on April 1 the shares of Chinese developers such as Sunac China, Shimao Group and Kaisa Group, and about 30 other firms for a delay in declaring annual results. According to Reuters, Hong Kong-listed firms usually have three months after the end of the financial year to publish results, though regulators in 2020 allowed trade to continue if companies whose audits were affected by pandemic curbs issued preliminary results without agreement with auditors, or published management accounts. "The exchange is committed to maintaining a fair, orderly and continuous market," the exchange operator, Hong Kong Exchanges and Clearing (HKEx), said in a statement. It would monitor developments to ensure suspensions were as short as reasonably possible, it added, Reuters relays. Of the 32 firms suspended for missing the March 31 deadline, 14 had audits affected by pandemic curbs, the exchange said. That compared with 57 suspended in the corresponding period last year, when two were related to COVID-19. Late on March 31, Shimao Group said its shares would be suspended from April 1 as it was unable to publish unaudited 2021 results in time, because of the outbreak, reports Reuters. Reuters relates that the pandemic had led to the lockdown of an office building at the firm's Shanghai headquarters and quarantine of some staff, with the date for curbs to be lifted still uncertain, Shimao added. On March 28, Sunac China had said trading in its shares would be halted for missing the HKEX deadline. On March 29, China Evergrande New Energy Vehicle Group Ltd, a unit of embattled developer China Evergrande Group, flagged a suspension for the same reason, Reuters relays. The firm would work with its auditor to publish results in about three months and seek to resume trading as soon as possible, it added. Other companies facing trading suspensions over the delay included Aoyuan Healthy Life Group, Fantasia Holdings and Kaisa Group. In Shanghai, more Chinese companies are halting domestic listing plans, as the coronvirus outbreak hampers due diligence and information-gathering, adds Reuters. ========= I N D I A ========= ADVANCE CROPCARE: Ind-Ra Assigns BB- Long-Term Issuer Rating ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has assigned Advance Cropcare (India) Private Limited a Long-Term Issuer Rating of 'IND BB-'. The Outlook is Stable. The instrument-wise rating actions are: -- INR40 mil. Term loan due on March 2024 assigned with IND BB-/ Stable rating; -- INR150 mil. Fund-based working capital limit assigned with IND BB-/Stable rating; and -- INR40 mil. Non-fund-based working capital limit assigned with IND A4+ rating. The ratings reflect ACPL's small scale of operations, weak credit metrics and tight liquidity. KEY RATING DRIVERS The ratings reflect ACPL's small scale of operations, as indicated by revenue of INR540 million in FY21 (FY20: INR525.02 million). The scale remained stable in FY21 due to muted sales during 1QFY21 owing to the nationwide lockdown, however, the revenue improved with increased sales in 4QFY21 until October 2021, the company achieved revenue of around INR360 million. Ind-Ra expects the revenue to improve in FY22, owing to normalization of business operations post the unlocking of economic activities. The ratings also factor in ACPL's modest EBITDA margin of 8.34% in FY21 (FY20: 7.38%) with a return on capital employed of 8% (7%). The increase in margin was due to the sale of high-margin products. In FY20, the company received Central Insecticides Board's certification for specific higher-margin insecticides, leading to higher operating margins in FY20 and FY21. In IHFY22, ACPL reported margins of around 8%. Thus, the company expects the margins to remain at similar levels in FY22. The ratings are further constrained by ACPL's weak credit metrics with the gross interest coverage (operating EBITDA/gross interest expense) of 1.5x in FY21 (FY20: 1.6x) and the net leverage (adjusted net debt/operating EBITDAR) of 6.9x (7.5x). The interest coverage remained almost stable in FY21 as the increase in absolute EBITDA was offset by an increase in long-term borrowings leading to an increase in interest costs. However, the net leverage improved on account of an increase in the absolute EBITDA and a decline in short-term borrowings. Ind-Ra expects the credit metrics to marginally improve in FY22 on account of a likely increase in absolute EBITDA and scheduled long-term loan repayments. Liquidity Indicator - Poor: The company's average maximum utilization of the fund-based and the non-fund-based facilities was around 98.3% and 100%, respectively, over the 12 months ended January 2022. The cash flow from operations turned positive to INR3.28 million in FY21 (FY20: negative INR62.56 million) owing to the higher EBITDA. Consequently, the free cash flow improved, although remained negative at INR8.71 million in FY21 (FY20: negative INR72.02 million). ACPL has cash and cash equivalents of INR12.46 million at FYE21 (FYE20: INR15.92 million). The company had a moderate working capital cycle of 48 days in FY21 (FY20: 52days). However, the ratings are supported by the promoters' over a decade of experience in the fertilizers and chemical business, leading to established relationships with its customers and suppliers. RATING SENSITIVITIES Positive: An improvement in the scale of operations, leading to an improvement in the credit metrics with the gross interest coverage remaining above 1.5x and an improvement in the liquidity position, all on a sustained basis, will be positive for the ratings. Negative: Any decline in the scale of operations, leading to deterioration in the credit metrics or the liquidity position, will be negative for the ratings. COMPANY PROFILE Incorporated in 2007, Indore-based ACPL manufactures bio fertilizers, micro nutrients, herbicides, weedicides, insecticides, pesticides and bio pesticides, and zinc sulphate. Ashish Tiwari, Hari Charan Tiwari, Abhishek Tiwari and Shekhar Babu are the promoters. The company has manufacturing units located in Madhya Pradesh and Gujarat AMBICA COATSPIN: Ind-Ra Assigns 'BB+' Long-Term Issuer Rating ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Shri Ambica Coatspin (SAC) a Long-Term Issuer Rating of 'IND BB+'. The Outlook is Positive. The instrument-wise rating actions are: -- INR100 mil. Fund-based limit assigned with IND BB+/Positive rating; and -- INR220 mil. Term loan due on February 2028 assigned with IND BB+/Positive rating. Analytical Approach: Ind-Ra has taken a consolidated view of SAC and its group companies Mahak Synthetics Mills Private Limited ('IND BB+'/Positive) and Shree Siddhivinayak Cotfab Private Limited ('IND BB+'/Positive), together referred to as the Mahak group hereafter, while assigning the ratings. This is because all the entities are under a common ownership and management, and have strong operational and strategic linkages among them. The Positive Outlook reflects Ind-Ra's expectation of an improvement in the group's revenue and operating EBITDA in FY22 on account of its strong operational performance in 9MFY22. The ratings reflect the group's medium scale of operations, modest operating EBITDA and credit metrics, and stretched liquidity. KEY RATING DRIVERS The group's revenue declined to INR2,596 million in FY21 (FY20: INR3,469 million) on account of COVID-19-led disruptions. During 9MFY22, the group achieved a higher revenue of about INR3,000 million owing to receipt of a higher number of orders. On a standalone basis, SAC achieved revenue of INR396 million in 9MFY22 (FY21: INR474 million, FY20: INR583 million). Liquidity Indicator – Stretched: The group's cash flow from operations turned negative to INR1.54 million in FY21 (FY20: INR197 million) due to unfavorable changes in working capital. Consequently, the free cash flow turned negative to INR15 million in FY21 (FY20: INR164 million). The group had an elongated net working capital cycle of 184 days in FY21 (FY20: 95 days) due to an increase in the inventory holding period to 87 days (62 days). The cash and cash equivalents stood at INR5.07 million at FYE21 (FYE20: INR4.86 million). It does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. On a consolidated level, the total debt stood at INR1,379 million at FYE21 (FYE20: INR1,419 million). The group has scheduled debt repayment of about INR129 million in FY22. The promoters had extended unsecured loans to the group in the past to meet its working capital requirements. As per management, in case of a further stress in liquidity, the promoters will continue to provide financial support to the group. The group's average use of the fund-based limits was 80% during the 12 months ended February 2022. On a standalone level, the company's average maximum use of the working capital limits was 66% during the 12 months ended February 2022. SAC's free cash flow declined to INR22.42 million during FY21 (FY20: INR66.05 million) owing to decrease in cash flow from operations to INR22.42 million (INR66.05 million), resulting from unfavorable changes in working capital. The company had a low cash balance of INR0.13 million at FYE21 (FYE20: INR0.18 million), against total outstanding debt of INR346 million (INR344 million). The ratings also reflect the group's modest credit metrics due to its modest EBITDA margins and high dependency on external debt. The interest coverage (operating EBITDA/gross interest expenses) deteriorated to 2.07x in FY21 (FY20: 2.19x), net leverage (total adjusted net debt/operating EBITDAR) to 4.8x (4.11x) and net leverage (excluding unsecured loans) to 4.19x (3.40x) due to a decrease in the operating EBITDA to INR284 million (INR344 million). During 9MFY22, the interest coverage was about 2.0x and the net leverage was about 4.0x. However, Ind-Ra expects the credit metrics to improve in FY22, due to an improvement in operating performance and partial repayment of debt. On a standalone basis, the interest coverage improved to 2.03x in FY21 (FY20: 2.29x) and the net leverage to 3.59x (3.67x), owing to an improvement in the operating EBITDA to INR96 million (INR93 million). The ratings also factor in Mahak group's modest EBITDA margins with a return on capital employed of 7.8% in FY21 (FY20: 7.8%). The margins increased to 10.9% in FY21 (FY20: 9.93%) owing to a decline in operating expenses. During 9MFY22, the group achieved EBITDA margins of 7%-8%. However, on a standalone basis, SAC's margins increased to 20% in FY21 (FY20: 16%) owing to a decrease in cost of sales. During 9MFY22, the EBITDA margins stood at 15%. The ratings are constrained by intense competition in the highly-fragmented textile industry, which largely has several unorganized small-sized players. Furthermore, the entry barriers are low on account of low capital requirement and technology intensity, and low differentiation in end product. However, the ratings benefit from the group's healthy operational synergies due to its vertically-integrated operations with presence in yarn manufacturing, weaving and processing. The group also benefits from the promoters' three decades of experience, leading to established relationships with its suppliers and customers. RATING SENSITIVITIES Negative: Any decline in the group's revenue and operating EBITDA, or a further elongation of the working capital cycle resulting in a further stretch in the liquidity position with the net leverage (excluding unsecured loans) remaining above 4.0x would be negative for the ratings. Positive: An increase in the group's revenue and operating EBITDA, improvement in the working capital cycle resulting in an improvement in the liquidity position with the net leverage (excluding unsecured loans) reducing below 4.0x, all on a sustained basis, would be positive for the ratings. COMPANY PROFILE SAC, a partnership firm, commenced operations in 2017. The firm is engaged in the manufacturing and trading of yarn. SAC mainly sells yarn to its group companies Mahak Synthetics Mills and Shree Siddhivinayak Cotfab. AMERICAN FEED: CRISIL Migrates B Debt Ratings to Not Cooperating ---------------------------------------------------------------- CRISIL Ratings has migrated the rating on bank facilities of American Feed Unit-II (AF) to 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 2.65 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Migrated) Proposed Cash 0.35 CRISIL B/Stable (ISSUER NOT Credit Limit COOPERATING; Rating Migrated) CRISIL Ratings has been consistently following up with AF for obtaining information through letters and emails dated February 26, 2022, March 8, 2022 and March 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 AF, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on AF is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of AF to 'CRISIL B/Stable Issuer not cooperating'. A proprietary concern, AF is engaged in the business of processing of poultry feed. APR CONSTRUCTION: Ind-Ra Moves BB+ Issuer Rating to Non-Cooperating ------------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated APR CONSTRUCTIONS LIMITED's Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR175 mil. Fund-based facilities migrated to non-cooperating category with IND BB+ (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR1.325 bil. Non-fund-based facilities migrated to non- cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last assigned on March 4, 2021. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE APR CONSTRUCTIONS was incorporated in 2004 and is engaged in engineering, procurement and construction contracts for central and state governments in irrigation, roads, railway bridges, industrial infrastructure, among others, mainly in the states of Andhra Pradesh and Telangana. ARYAN ISPAT: Ind-Ra Affirms 'D' Long-Term Issuer Rating ------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Aryan Ispat & Power Private Limited's (AIPPL) Long-Term Issuer Rating at 'IND D' and has simultaneously migrated the rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Thus, the rating is based on the best available information. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR921 mil. Term loan (Long-term) due on September 2025 affirmed and migrated to Issuer not-cooperating with IND D (ISSUER NOT COOPERATING) rating; -- INR444 mil. Proposed term loans (Long-term) affirmed and migrated to Issuer not-cooperating with IND D (ISSUER NOT COOPERATING) rating; -- INR150 mil. Term loan (Long-term) affirmed and migrated to Issuer not-cooperating with IND D (ISSUER NOT COOPERATING) rating; and -- INR340 mil. Fund-based & non-fund based working capital facility (Long-term/Short-term) affirmed and migrated to issuer not-cooperating with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information. KEY RATING DRIVERS The affirmation reflects continued delays in debt servicing by AIPPL since September 2020 and the written confirmation received from banker that the account has been categorized in NPA category on March 31, 2021. COMPANY PROFILE AIPPL, incorporated in 2003, primarily manufactures sponge iron. It also operates power plants with combined generation capacity of 18MW, owns a railway siding and provides transportation and logistics services for mining operations. ATHARVA AUTO: Insolvency Resolution Process Case Summary -------------------------------------------------------- Debtor: Atharva Auto Logistics Private Limited Flat No. 2, SN-199/204/206 Siddhant Classic Viman Nagar, Pune MH 411014 IN Insolvency Commencement Date: February 24, 2022 Court: National Company Law Tribunal, Pune Bench Estimated date of closure of insolvency resolution process: August 18, 2022 (180 days from commencement) Insolvency professional: Ugaykumar Bhaskar Bhat Interim Resolution Professional: Ugaykumar Bhaskar Bhat B-304, Goldville Dange Chowk Aundh Ravet Road Thergaon, Pune 411033 E-mail: udaybhat2805@gmail.com irp.atharvaauto@gmail.com Last date for submission of claims: March 9, 2022 BELGAUM WIND: Ind-Ra Keeps B+ Bank Loan Rating in Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Belgaum Wind Farms Private Limited's (BWFPL) senior project bank loan rating of 'IND B+ (ISSUER NOT COOPERATING)' in the non-cooperating category and has simultaneously withdrawn it. The detailed rating action is: -- INR700 mil. (INR399.4 mil. outstanding as of January 31, 2020) Senior project bank loan* maintained in non-cooperating category and withdrawn. *Maintained at 'IND B+ (ISSUER NOT COOPERATING)' before being withdrawn KEY RATING DRIVERS The rating has been maintained in the non-cooperating category as BWFPL did not participate in the rating exercise despite request from Ind-Ra to provide surveillance information and no default statement. Ind-Ra is no longer required to maintain the rating as the agency has received a no-objection certificate from the rated facility's lender. This is consistent with the Securities and Exchange Board of India's circular dated March 31, 2017 for credit rating agencies. COMPANY PROFILE BWFPL is a 24.8MW wind power project that is located in the Gadag plains near Belgaum, Karnataka. The project has been set up and promoted by the Indian Energy Group. BHAFRA SPIRITS: Voluntary Liquidation Process Case Summary ---------------------------------------------------------- Debtor: Bhafra Spirits Private Limited 33/22 2nd Floor, L'Sam Building 1st Cross, Victoria Road Xavier Layout, Bangalore KA 560047 Liquidation Commencement Date: March 21, 2022 Court: National Company Law Tribunal, Bengaluru Bench Insolvency professional: Devika Sathyanarayana Interim Resolution Professional: Devika Sathyanarayana No. B 106, Sai Siri Heritage Apartments B Block, Uttarahalli Road Kengeri, Bengaluru 560060 Mobile: 9620698482 Last date for submission of claims: April 20, 2022 BIPICO INDUSTRIES: Ind-Ra Moves B+ Issuer Rating to Non-Cooperating ------------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Bipico Industries (Tools) Pvt Ltd.'s Long-Term Issuer Rating of 'IND B+' to the non-cooperating category and has simultaneously withdrawn it. The instrument-wise rating actions are: -- INR185 mil. Fund-based working capital limits* migrated to non-cooperating category and withdrawn; and -- INR35.6 mil. Term loan** due on March 2023 migrated to non- cooperating category and withdrawn; *Migrated to 'IND B+ (ISSUER NOT COOPERATING)/IND A4 (ISSUER NOT COOPERATING)' before being withdrawn. ** Migrated to 'IND B+ (ISSUER NOT COOPERATING)' before being withdrawn. KEY RATING DRIVERS Ind-Ra has migrated the ratings to 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 BITPL was incorporated in 1972, engaged in the manufacture of hacksaw blades and bandsaw blades. BLUE STAR: CRISIL Migrates D Debt Rating to Not Cooperating ----------------------------------------------------------- CRISIL Ratings has migrated the rating on bank facilities of Blue Star Building Materials Private Limited (BSBMPL) to 'CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 12.5 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) CRISIL Ratings has been consistently following up with BSBMPL for obtaining information through letters and emails dated March 8, 2022 and March 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 BSBMPL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on BSBMPL is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of BSBMPL to 'CRISIL D Issuer not cooperating'. BSBMPL incorporated in 1996, is engaged in manufacturing and laying paver blocks and Readymade concrete (RMC). CAMERICH PAPERS: Ind-Ra Moves 'D' Issuer Rating to Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has migrated Camerich Papers Private Limited's Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR926 mil. Term loan (Long-term) due on March 2024 migrated to non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; -- INR250 mil. Fund-based facilities (Long-term/Short-term) migrated to non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR50 mil. Non-fund-based facilities (Short-term) migrated to non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last rated on March 8, 2021. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 2014, Camerich Papers set up a plant in Morbi (Gujarat) for manufacturing duplex and triplex paper board. The 90,000 metric ton per annum plant commenced commercial operations in June 2018. CHIDANAND BASAPRABHU: Ind-Ra Hikes Long-Term Issuer Rating to 'BB' ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has upgraded Chidanand Basaprabhu Kore Sahakari Sakkare Karakhane Niyamit's (CBKSSKN) Long-Term Issuer Rating to 'IND BB' from 'IND B+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR2.40 bil. (reduced from 2.60 bil.) Fund-based facilities upgraded with IND BB/Stable/IND A4+ rating; and -- INR420 mil. (reduced from 469.36 mil.) Term loan due on November 2027 upgraded with IND BB/Stable rating. The upgrade reflects CBKSSKN's better-than-Ind-Ra-expected financial performance in FY21 and the likelihood of it to continue in FY22. KEY RATING DRIVERS CBKSSKN's modest EBITDA margin improved to 17% in FY21 (FY20: 4.27%), due to improved realizations from the crushing and non-crushing segments. The agency expects the profitability to improve further in FY22, due to the continued improvement in realizations. The ratings also factor in an improvement CBKSSN's modest credit metrics. In FY21, the interest coverage (operating EBITDA/gross interest) and the net financial leverage (adjusted net debt/operating EBITDA) improved to 1.41x (FY20: 0.47x) and 5.54x (13.76x), respectively, due to a rise in the absolute EBITDA to INR557 million (INR203 million). The agency expects the company's credit metrics to improve further in FY22 owing to a further rise in the absolute EBITDA and a reduction in the overall financial commitments. The ratings factor the support from CBKSSKN's main institutional customer Hindustan Coca-Cola Beverages Private Limited (IND AAA/Stable) that contributes 40%-50% to the total revenue. Hindustan Coca-Cola Beverages has booked around 5,50,000 quintals sugar from CBKSSKN in FY22 at premium prices. However, there is no long-term agreement between the two parties. The ratings reflect CBKSSKN's medium scale of operations. CBKSSKN's revenues declined 31% yoy in FY21 to INR3,278 million, despite a higher recovery rate of 11.50% in sugar season (SS) 2020-2021 as compared to 10.36% of SS2019-2021, due to the low release of sugar quota in 2021 as against that in FY20. However, with the high release of sugar quota in 2022, backed by an increase in sugar demand, the agency expects an significant increase in the revenue. At end-February 2022, CBKSSKN had achieved revenues of INR5,300 million. Liquidity: Indicator - Stretched: The company's cashflow from operations turned negative at INR743 million in FY21 (FY20: INR505 million) due to a stretch in its working capital cycle. The cycle elongated to 434 days in FY21 (FY20: 183 days), due to a rise in the inventory days to 393 (103). However, Ind-Ra expects the cash flow from operations to improve in FY22 owing to an improvement in the working capital cycle. The cash and cash equivalents of the company stood at INR262 million in FY21 (FY20: INR280.88 million). The ratings continue to be supported by CBKSSKN's extensive operational track record of over four decades in the sugar industry, which has led to its established relationships with suppliers and customers. Moreover, CBKSSKN has taken various initiatives such as implementing lift and drip irrigation, the distribution of seeds, seedlings, compost, fertilizer and so on, free soil and water testing to improve yields, recovery, command area and water availability. RATING SENSITIVITIES Positive: An improvement in the liquidity and the interest coverage rising above 1.5x will be positive for the ratings. Negative: Substantial deterioration in the liquidity and the interest coverage falling under 1.25x will be negative for the ratings. COMPANY PROFILE CBKSSKN has an integrated sugar plant with a cane crushing, distillery and power generation capacity of 10,000 tons of cane crushed/day, 30,000 liter/day and 28.7MW, respectively, in Chikodi, Karanataka. The co-operative society has an integrated sugar plant with a cane crushing, distillery and power generation capacity of 10,000 TCD, 30 klpd and 28.7 MW in Chikodi, Karanataka. DIVYAM DEVELOPERS: Insolvency Resolution Process Case Summary ------------------------------------------------------------- Debtor: Divyam Developers Private Limited First Room Portion 9-10/3 3rd Floor, Laxman House ASAF Ali Road New Delhi, DL 110002 IN Insolvency Commencement Date: March 25, 2022 Court: National Company Law Tribunal, New Delhi Bench Estimated date of closure of insolvency resolution process: September 20, 2022 Insolvency professional: Ms. Rukhsana Choudhury Interim Resolution Professional: Ms. Rukhsana Choudhury 1080/1 Mehrauli New Delhi, South National Capital Territory of Delhi 110030 E-mail: rukhsanac@gmail.com ip.divyam@gmail.com Classes of creditors: Home Buyers Insolvency Professionals Representative of Creditors in a class: Rajeev Lochan Radhey Shyam Yadav Anil Kumar Mittal Last date for submission of claims: April 11, 2022 FUTURE RETAIL: Reliance Defends Takeover of Future Stores --------------------------------------------------------- Reuters reports that Reliance has privately defended an abrupt takeover of the stores of debt-laden rival Future Retail, saying mounting dues of $634 million compelled it to act beyond expectations, a company letter showed. Reuters relates that the takeover was part of the race to dominate a $900-billion retail sector that set off a bitter dispute in which India's Supreme Court will decide whether Reliance or Amazon.com Inc. gets to scoop up Future's assets. The March 8 letter, seen by Reuters, reveals for the first time Reliance's stance on the events of the night of Feb. 25, when staff suddenly showed up at many of its rival's stores to take control over missed lease payments. That move stunned not only Future but also Amazon, which has cited violation of certain contracts to legally block, since 2020, a $3.4-billion deal between the two Indian giants, Reuters says. In the letter, Reliance said it went "well and truly beyond what can be expected" to keep Future "out of harm's way," as it took "significant steps" to ensure business continuity at Future and make sure there was "no impediment" to their deal. These steps included financial support of INR48 billion (US$634 million), comprising INR11 billion of unpaid lease rentals and INR37 billion of working capital. Over months, Reliance had taken over the leases of more than 900 of Future's 1,500 stores, while still allowing the company to run them, according to Reuters. As Future proved unable to pay outstanding dues and losses in its retail operations swelled, Reliance faced "compelling circumstances" and decided to exercise its legal right to take over the stores, the letter added. Future, which is staring at bankruptcy as its losses grow, has previously called Reliance's move "drastic and unilateral". Before Amazon blocked it, Reliance, led by India's richest man, Mukesh Ambani, had proposed a $3.4-billion deal to buy Future's retail, wholesale and logistics operations, as well as some other businesses. But following Reliance's abrupt takeover of its stores, Future sought several assurances in a March 2 letter, also seen by Reuters, asking if Reliance would stick to the deal without changing its value or terms. In its response on March 8, Reliance said Future's request for assurances had to be seen "in the light of the rapidly evolving circumstances". It added, "As and when the scheme (deal) is implemented, it will be in accordance with its terms," Reuters relays. About Future Group Future Group operates multi-branded retail outlets. The company's retail chains include department stores, outlet stores, sportswear, home improvement and consumer durables, supermarket, and convenience stores as well as food parks. Cash-strapped Future Group owes around INR19,000 crore to banks and INR6,000 crore to the vendors. Future Retail Limited owes INR6,278 crore debt with 28 banks, including SBI, Union Bank, Bank of India, Bank of Baroda, Axis Bank, and IDBI Bank, among others. Future, India's second-largest retailer, has sought to complete its US$3.4 billion retail asset sale to Reliance Retail since 2020. The Indian Supreme Court has upheld the Singapore Emergency Arbitrator's award against Reliance Retail's takeover of Future group companies. GES INFOTEK PRIVATE: Voluntary Liquidation Process Case Summary --------------------------------------------------------------- Debtor: GES Infotek Private Limited First Floor, Padmanabham Technopark, Karyavattom P.O. Trivandrum 695581 Liquidation Commencement Date: March 25, 2022 Court: National Company Law Tribunal, Bangalore Bench Insolvency professional: Ganesh Panduranga Pai Interim Resolution Professional: Ganesh Panduranga Pai #68, Chitrapur Bhavan 6B, 6th Floor 8th Main, 15th Cross Malleshwaram Bangalore 560055 E-mail: pragnya.cas@gmail.com Mobile: 9845666596 Tel: 08023565641 Last date for submission of claims: April 24, 2022 GUNA POULTRY: CRISIL Moves B+ Debt Rating to Not Cooperating ------------------------------------------------------------ CRISIL Ratings has migrated the rating on bank facilities of Guna Poultry Feeds (GPF, part of Rajamanickam group) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL Ratings has been consistently following up with GPF for obtaining information through letters and emails dated March 8, 2022 and March 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 GPF, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on GPF is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of GPF to 'CRISIL B+/Stable Issuer not cooperating'. For arriving at the ratings, CRISIL Ratings has combined the business and financial risk profiles of GPF and Rajamanickam Poultry Farm (RPF). This is because both the entities, together referred as the Rajamanickam group, operate in the same industry and have significant operational and financial linkages. GPF was established as proprietorship firm in 2002. It is engaged in manufacturing of poultry feeds such as broiler feed, layer feed, etc. In addition firm involved in trading of eggs. It has a feed manufacturing plant in Namakkal-Tamilnadu and owned by R. Gunavathi. Rajamanickam Poultry Farm (RPF) was established in 2002 as partnership firm. It is engaged in running poultry farm with 3 lakh layer birds with produces & selling laying poultry birds (chickens) and eggs, which is located at Namakkal- Tamil Nadu. It is owned & managed by P Rajamanickam, R Gunavathi and R Revathi. HYQUIP SYSTEMS: Ind-Ra Keeps B- Issuer Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Hyquip Systems Limited's Long-Term Issuer Rating of 'IND B- (ISSUER NOT COOPERATING)' in the non-cooperating category and has simultaneously withdrawn it. The instrument-wise rating actions are: -- INR86.6 mil. Fund-based facilities* maintained in non- cooperating category and withdrawn; and -- INR102 mil. Non-fund-based facilities** maintained in non- cooperating category and withdrawn. *Maintained at 'IND B- (ISSUER NOT COOPERATING)'/'IND A4 (ISSUER NOT COOPERATING)' before being withdrawn **Maintained at 'IND A4 (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. COMPANY PROFILE Incorporated in 1987, Hyquip Systems is an engineering company engaged in the manufacturing of bulk material handling equipment and executes projects for steel, cement, sugar, paper and power industries. Its office and plant are located at Hyderabad. JAI HANUMAN: CRISIL Keeps D Debt Ratings to Not Cooperating ----------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Jai Hanuman Agrotech Private Limited (JHAPL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 1.5 CRISIL D (Issuer Not Cooperating) Overdraft Facility 0.18 CRISIL D (Issuer Not Cooperating) Term Loan 3.62 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with JHAPL 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 JHAPL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on JHAPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of JHAPL continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. JHAPL was set up by Mr. Santosh Kumar, Mr. Ajeet Kumar and Mr. Pramod Kumar for providing a multipurpose cold storage facility in Patna. The total capacity is 10,000 tonne and has been operational since March 2015. JALNA SIDDHIVINAYAK: CRISIL Moves D Ratings to Not Cooperating -------------------------------------------------------------- CRISIL Ratings has migrated the rating on bank facilities of Jalna Siddhivinayak Alloys Private Limited (JSAPL; part of the Jalna group) to 'CRISIL D/CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 6 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) Cash Credit 50 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) Cash Credit 18 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) Term Loan 20 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) CRISIL Ratings has been consistently following up with JSAPL for obtaining information through letters and emails dated March 8, 2022 and March 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 JSAPL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on JSAPL is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of JSAPL to 'CRISIL D/CRISIL D Issuer not cooperating'. For arriving at its ratings, CRISIL Ratings has combined the business and financial risk profiles of JSAPL and Roopam Steel Rolling Mills (RSRM). This is because these entities, together referred to as the Jalna group, have significant business synergies and fungible cash flows. JSAPL, incorporated in 1999, manufactures MS billets and thermo-mechanically treated (TMT) bars. The manufacturing facility at Jalna has MS billets and TMT bar capacity of 66,000 and 42,000 tonne per annum. The sales of the TMT bars are through large traders in and around central India under the brand Roopam. With effect from March 31, 2018, a group entity - Roopam Steel Rolling Mills (RSRM) having TMT capacity, was merged with JSAPL. KANCHESHWAR SUGAR: CRISIL Moves D Debt Ratings to Not Cooperating ----------------------------------------------------------------- CRISIL Ratings has migrated the rating on bank facilities of Kancheshwar Sugar Limited (KSL) to 'CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 50 CRISIL D (Issuer Not Cooperating; Rating migrated) Term Loan 45 CRISIL D (Issuer Not Cooperating; Rating migrated) Term Loan 28 CRISIL D (Issuer Not Cooperating; Rating migrated) CRISIL Ratings has been consistently following up with KSL for obtaining information through letters and emails dated March 8, 2022 and March 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 KSL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on KSL is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of KSL to 'CRISIL D Issuer not cooperating'. Incorporated in 2011, KSL manufactures sugar. Its plant is in Mangrul, Maharashtra, with an installed capacity for the crushing of 3500 tonne per day. It also has a 15 megawatt co-generation power plant. Mr. Dilip Mane, Mr. Ashwinkumar Bhopale, Mr. Pravin More, and their associates are the promoters. KAYCEE INDUSTRIES: CRISIL Withdraws D Rating on INR7.5cr Loan ------------------------------------------------------------- CRISIL Ratings has withdrawn its rating on the bank facilities of Kaycee Industries (KI) on the request of the company and after receiving no objection certificate from the bank. The rating action is in-line with CRISIL Rating's policy on withdrawal of its rating on bank loan facilities. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 0.12 CRISIL D (ISSUER NOT COOPERATING; Migrated from 'CRISIL D'; Rating Withdrawn) Cash Credit 7.50 CRISIL D (ISSUER NOT COOPERATING; Migrated from 'CRISIL D'; Rating Withdrawn) Inland/Import 0.25 CRISIL D (ISSUER NOT Letter of Credit COOPERATING; Migrated from 'CRISIL D'; Rating Withdrawn) Long Term Loan 0.88 CRISIL D (ISSUER NOT COOPERATING; Migrated from 'CRISIL D'; Rating Withdrawn) Proposed Long Term 4.75 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING; Migrated from 'CRISIL D'; Rating Withdrawn) CRISIL Ratings has been consistently following up with KI for obtaining information through letters and emails dated March 16, 2022 and March 21, 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 KI. This restricts CRISIL Ratings' ability to take a forward-looking view on the credit quality of the entity. CRISIL Ratings believes that rating action on KI is consistent with 'Assessing Information Adequacy Risk'. CRISIL Ratings has migrated the ratings on the bank facilities of KI to 'CRISIL D/CRISIL D Issuer not cooperating'. Established in 2007, KI, a partnership firm of Mr. Tarun Dave. The firm is engaged in manufacturing of reclaim Lead. The firm has a facility in at Saregam near Vapi, Gujarat with an installed capacity of smelting 500 tonnes per month. There are five partners in this partnership firm. KHWAHISH MARKETING: CRISIL Keeps D Ratings to Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Khwahish Marketing Private Limited (KMPL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Overdraft Facility 7.5 CRISIL D (Issuer Not Cooperating) Proposed Long Term 12.5 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with KMPL 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 KMPL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on KMPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of KMPL continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Incorporated in 2005 as private limited company, KMPL is a trader of iron and steel products. Based in Ghaziabad, Uttar Pradesh, the firm is managed and promoted by Mr. Prashant Sharma. MAHAK SYNTHETIC: Ind-Ra Assigns 'BB+' Long-Term Issuer Rating ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Mahak Synthetic Mills Private Limited (MSMPL) a Long-Term Issuer Rating 'IND BB+'. The Outlook is Positive. The instrument-wise rating actions are: -- INR350 mil. Fund-based working capital limit assigned with IND BB+/Positive rating; and -- INR60 mil. Term loan due on December 2025 assigned with IND BB+/Positive rating. Analytical Approach: Ind-Ra has taken a consolidated view of Mahak Synthetics Mills Private Limited and its group companies Shree Siddhivinayak Cotfab Private Limited ('IND BB+'/Positive) and Shri Ambica Coatspin ('IND BB+'/Positive), together referred to as the Mahak group hereafter, while assigning the ratings. This is because all the entities are under a common ownership and management, and have strong operational and strategic linkages among them. The Positive Outlook reflects Ind-Ra's expectation of an improvement in the group's revenue and operating EBITDA in FY22 on account of its strong operational performance in 9MFY22. The ratings reflect group's medium scale of operations, modest operating EBITDA and credit metrics, and stretched liquidity. KEY RATING DRIVERS The group's revenue declined to INR2,596 million in FY21 (FY20: INR3,469 million) on account of COVID-19-led disruptions. During 9MFY22, the group achieved a higher revenue of about INR3,000 million owing to receipt of a higher number of orders. On a standalone basis, MSMPL achieved revenue of INR3,157 million in 9MFY22 (FY21: INR2,595 million, FY20: INR3,281 million). Liquidity Indicator - Stretched: The group's cash flow from operations turned negative to INR1.54 million in FY21 (FY20: INR197 million) due to unfavorable changes in working capital. Consequently, the free cash flow turned negative to INR15 million in FY21 (FY20: INR164 million). The group had an elongated net working capital cycle of 184 days in FY21 (FY20: 95 days) due to an increase in the inventory holding period to 87 days (62 days). The cash and cash equivalents stood at INR5.07 million at FYE21 (FYE20: INR4.86 million). It does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. On a consolidated level, the total debt stood at INR1,379 million at FYE21 (FYE20: INR1,419 million). The group has scheduled debt repayment of about INR129 million in FY22. The promoters had extended unsecured loans to the group in the past to meet its working capital requirements. As per management, in case of a further stress in liquidity, the promoters will continue to provide financial support to the group. The group's average use of the fund-based limits was 80% during the 12 months ended February 2022. On a standalone level, the company's average maximum use of the working capital limits was 83% during the 12 months ended February 2022. MSMPL's cash flow from operations declined to INR32 million in FY21 (FY20: INR147 million) due to unfavorable changes in working capital. The company had a low cash balance of INR3.7 million at FYE21 (FYE20: INR3.57 million), against total outstanding debt of INR984 million (INR830 million). The ratings also reflect the group's modest credit metrics due to its modest EBITDA margins and high dependency on external debt. The interest coverage (operating EBITDA/gross interest expenses) deteriorated to 2.07x in FY21 (FY20: 2.19x), the net leverage (total adjusted net debt/operating EBITDAR) to 4.8x (4.11x) and net leverage (excluding unsecured loans) increased to 4.19x (3.40x) due to a decrease in the operating EBITDA to INR284 million (INR344 million). During 9MFY22, the interest coverage was about 2.0x and the net leverage was about 4.0x. However, Ind-Ra expects the credit metrics to improve in FY22, due to an improvement in operating performance and partial repayment of debt. On a standalone basis, the interest coverage deteriorated to 1.94x in FY21 (FY20: 2.04x) and the net leverage to 8.73x (5.07x) owing to a decrease in the operating EBITDA to INR112 million (INR163 million) and an increase in the total debt to INR984 million (INR830 million). The ratings also factor in Mahak group's modest EBITDA margins with a return on capital employed of 7.8% in FY21 (FY20: 7.8%). The margins increased to 10.9% in FY21 (FY20: 9.93%) owing to a decline in operating expenses. During 9MFY22, the group achieved EBITDA margins of 7%-8%. However, on a standalone basis, MSMPL's margins declined to 4.33% in FY21 (FY20: 4.97%), owing to increase in cost of sales. During 9MFY22, the standalone margins stood at 3.01%. The ratings are also constrained by intense competition in the highly-fragmented textile industry, which largely has several unorganized small-sized players. Furthermore, the entry barriers are low on account of low capital requirement and technology intensity, and low differentiation in end product. However, the ratings benefit from the group's healthy operational synergies due to its vertically-integrated operations with presence in yarn manufacturing, weaving and processing. The group also benefits from the promoters' three decades of experience, leading to established relationships with its suppliers and customers. RATING SENSITIVITIES Negative: Any decline in the group's revenue and operating EBITDA, or a further elongation of the working capital cycle resulting in a further stretch in the liquidity position with the net leverage (excluding unsecured loans) remaining above 4.0x would be negative for the ratings. Positive: An increase in the group's revenue and operating EBITDA, an improvement in the working capital cycle, resulting in an improvement in the liquidity position with the net leverage (excluding unsecured loans) reducing below 4.0x, all on a sustained basis, would be positive for the ratings. COMPANY PROFILE Established in 1981, MSMPL is engaged in the process of converting grey cloth into finished cotton and denim fabric. MAHALAKSHMI COLD: CRISIL Moves B+ Debt Ratings to Not Cooperating ----------------------------------------------------------------- CRISIL Ratings has migrated the rating on bank facilities of Mahalakshmi Cold Storage Private Limited (MCSPL) to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) Proposed Long Term 0.25 CRISIL B+/Stable (Issuer Not Bank Loan Facility Cooperating; Rating Migrated) Proposed Short Term 0.10 CRISIL A4 (Issuer Not Bank Loan Facility Cooperating; Rating Migrated) Working Capital 0.65 CRISIL B+/Stable (Issuer Not Loan Cooperating; Rating Migrated) CRISIL Ratings has been consistently following up with MCSPL for obtaining information through letters and emails dated March 8, 2022 and March 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 MCSPL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on MCSPL is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of MCSPL to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. MCSPL was incorporated in 1995 by Mr. Swapan Chandgar Kumar, Mr. Narayan Pada Khatua and Mr. Pradip Kumar Khatua. The company operates a cold storage unit for potatoes, with capacity of 125,000 quintals, in Paschim Medinipur, WB. It occasionally trades in potatoes to ensure optimum utilization of the cold storage unit. It also finances farmers' loans, which are refinanced by banks. MANAS GEO: CRISIL Moves B+ Debt Ratings to Not Cooperating ---------------------------------------------------------- CRISIL Ratings has migrated the rating on bank facilities of Manas Geo Tech India Private Limited (MGTIPL) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 3.35 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) Term Loan 4.65 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) CRISIL Ratings has been consistently following up with MGTIPL for obtaining information through letters and emails dated February 26, 2022, March 8, 2022 and March 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 MGTIPL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on MGTIPL is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of MGTIPL to 'CRISIL B+/Stable Issuer not cooperating'. MGTIPL was set up in 20154, by the promoter, Mr. Dinesh Kanodia. The company manufactures non-woven geotextile that is used in the construction of tunnels, dams and railways. MICRO DYNAMICS: Insolvency Resolution Process Case Summary ---------------------------------------------------------- Debtor: Micro Dynamics Private Limited T-178 MIDC Bhosari Pune MH 411026 IN Insolvency Commencement Date: February 28, 2022 Court: National Company Law Tribunal, Pune Bench Estimated date of closure of insolvency resolution process: August 23, 2022 (180 days from commencement) Insolvency professional: Anagha Anasingaraju Interim Resolution Professional: Anagha Anasingaraju C/o Kanjmag & Co Company Secretaries 1-2, Aishwarya Sankul 17 G.A. Kulkarni Path Opp. Joshi's Railway Museum Kothrud, Pune 411038 E-mail: rp.anagha@kanjcs.com Last date for submission of claims: March 14, 2022 MODERN SYNTEX: Insolvency Resolution Process Case Summary --------------------------------------------------------- Debtor: M/s Modern Syntex (India) Limited A-4, Vihay Path Tilak Nagar, Jaipur RJ 302004 IN Insolvency Commencement Date: March 28, 2022 Court: National Company Law Tribunal, Nagpur Bench Estimated date of closure of insolvency resolution process: September 24, 2022 Insolvency professional: Partha Sarathy Sarkar Interim Resolution Professional: Partha Sarathy Sarkar Office-1, 1st Floor Jalaram Krupa, Jammabhoomi Marg Fort, Mumbai 400001 E-mail: sarkarpartho@yahoo.com Last date for submission of claims: April 11, 2022 MOOG EM SOLUTIONS: Voluntary Liquidation Process Case Summary ------------------------------------------------------------- Debtor: Moog Em Solutions (India) Private Limited No. 41P, 99P & 100P KIADB Industrial Area Electronic City-II Bangalore 560100 Liquidation Commencement Date: March 25, 2022 Court: National Company Law Tribunal, Bangalore Bench Insolvency professional: Ganesh Panduranga Pai Interim Resolution Professional: Ganesh Panduranga Pai #68, Chitrapur Bhavan 6B, 6th Floor 8th Main, 15th Cross Malleshwaram Bangalore 560055 E-mail: pragnya.cas@gmail.com Mobile: 9845666596 Tel: 08023565641 Last date for submission of claims: April 24, 2022 MYTRAH ENERGY: Ind-Ra Lowers Long-Term Issuer Rating to 'D' ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Mytrah Energy (India) Private Limited's (MEIPL) Long-Term Issuer Rating to 'IND D (ISSUER NOT COOPERATING)' from 'IND B- (ISSUER NOT COOPERATING)'. The instrument-wise rating actions are: -- INR1.450 bil. Fund-based limits (Long-term/Short-term) downgraded with IND D (ISSUER NOT COOPERATING) rating; and -- INR3.370 bil. Non-fund-based limits (Long-term/Short-term) downgraded with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information. Analytical Approach: Ind-Ra continues to take a consolidated view of MEIPL and its subsidiaries for its analysis, given the strong operational and strategic linkages among them and MEIPL's dependence on the subsidiaries for its debt servicing. KEY RATING DRIVERS The downgrade reflects delays in the debt servicing of MEIPL's bank facilities based on information from public sources, reported on March 25, 2022. However, Ind-Ra has not been able to ascertain the reason for the delays, as the company has been non-cooperative. COMPANY PROFILE MEIPL is a holding-cum-operating company for various wind and solar power projects. It is one of the leading independent power producers of renewable energy in India. It implements and operates various wind and solar power projects in India through its subsidiaries and generates revenue from the engineering, procurement and construction business. NORTH KERALA FOORTWEAR: Voluntary Liquidation Process Case Summary ------------------------------------------------------------------ Debtor: North Kerala Footwear Consortium Private Limited NH 17, Kolathara P.O. Kozhikode, Kerala 673655 India Liquidation Commencement Date: March 25, 2022 Court: National Company Law Tribunal, Palakkad Bench Insolvency professional: Ms. Midhuna K.C. Interim Resolution Professional: Ms. Midhuna K.C. Door No. 23/1126, Old No. 18/21(16) 2nd Floor, Fort Centre Stadium Bye-pass Road Stadium Bye-pass Jn. Palakkad 678001 Mobile: +9995217298 E-mail: csmidhuna@gmail.com Last date for submission of claims: April 24, 2022 PREMSONS AND PODDARS: CRISIL Moves B+ Ratings to Not Cooperating ---------------------------------------------------------------- CRISIL Ratings has migrated the rating on bank facilities of Premsons And Poddars Trucking Company LLP (PPTCL) to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Inventory Funding 5 CRISIL B+/Stable (Issuer Not Facility Cooperating; Rating Migrated) Inventory Funding 2 CRISIL B+/Stable (Issuer Not Facility Cooperating; Rating Migrated) Inventory Funding 7.5 CRISIL B+/Stable (Issuer Not Facility Cooperating; Rating Migrated) Overdraft Facility 0.41 CRISIL A4 (Issuer Not Cooperating; Rating Migrated) Term Loan 1.09 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) CRISIL Ratings has been consistently following up with PPTCL for obtaining information through letters and emails dated March 8, 2022 and March 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 PPTCL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on PPTCL is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of PPTCL to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. PPTCL, set up in January 2017, is a Ranchi (Jharkhand)-based firm, owned and managed by Mr. Mohit Poddar and family. The firm is an authorized distributor of spare parts and CVs of ALL in Ranchi and Hazaribagh and commenced commercial operations from June 2017. RA FASHIONS: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of RA Fashions Private Limited (RAFPL; part of the Ashro group) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 2.50 CRISIL D (Issuer Not Cooperating) Long Term Loan 1.91 CRISIL D (Issuer Not Cooperating) Working Capital 2.59 CRISIL D (Issuer Not Term Loan Cooperating) CRISIL Ratings has been consistently following up with RAFPL 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 RAFPL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on RAFPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of RAFPL continue to be 'CRISIL D Issuer Not Cooperating'. CRISIL Ratings has combined the business and financial risk profiles of RA Fashions Pvt Ltd (RAFPL) and ATPL. This is because the companies, collectively referred to as the Ashro group, have common management and are in the same line of business, leading to operational and financial linkages. ATPL and RAFPL were incorporated in 2011 by Mr. Ravinder Agarwal. The group manufactures readymade garments for men and women. The weaving unit is in Wada (Thane) and the stitching unit in Bengaluru. RAJ BREEDERS: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------ CRISIL Ratings said the ratings on bank facilities of Raj Breeders and Hatcheries Private Limited (RBHPL; part of the Raj group) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 18.3 CRISIL D (Issuer Not Cooperating) Long Term Loan 4.1 CRISIL D (Issuer Not Cooperating) Long Term Loan 3.75 CRISIL D (Issuer Not Cooperating) Long Term Loan 1.35 CRISIL D (Issuer Not Cooperating) Proposed Long Term 0.90 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with RBHPL for obtaining information through letters and emails dated January 31, 2022 and February 28, 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 RBHPL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on RBHPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of RBHPL continue to be 'CRISIL D Issuer Not Cooperating'. For arriving at the rating, CRISIL Ratings has combined the business and financial risk profiles of RBHPL and Raj Chick Farms Pvt Ltd (RCFPL). This is because both these companies, together referred to as the Raj group, are under the same management, and have considerable operational and financial linkages with each other. The Raj group, which comprises RBHPL (up in 1998) and RCFPL (2002), is promoted by Mr. O P Khurana and his family. Both entities are is in the poultry farming business. RAJAMANICKAM POULTRY: CRISIL Moves B+ Rating to Not Cooperating --------------------------------------------------------------- CRISIL Ratings has migrated the rating on bank facilities of Rajamanickam Poultry Farm (RPF, part of Rajamanickam group) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL Ratings has been consistently following up RPF for obtaining information through letters and emails dated March 8, 2022 and March 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 PAIPL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on PAIPL is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of PAIPL to 'CRISIL B+/Stable Issuer not cooperating'. For arriving at the ratings, CRISIL Ratings has combined the business and financial risk profiles of RPF and Guna Poultry Feeds (GPF). This is because both the entities, together referred as the Rajamanickam group, operate in the same industry and have significant operational and financial linkages. RPF was established in 2002 as partnership firm. It is engaged in running poultry farm with 3 lakh layer birds with produces & selling laying poultry birds (chickens) and eggs, which is located at Namakkal- Tamil Nadu. It is owned & managed by P Rajamanickam, R Gunavathi and R Revathi. GPF was established as proprietorship firm in 2002. It is engaged in manufacturing of poultry feeds such as broiler feed, layer feed, etc. In addition firm involved in trading of eggs. It has a feed manufacturing plant in Namakkal-Tamilnadu and owned by R. Gunavathi. RANI SATI: CRISIL Keeps B Debt Ratings in Not Cooperating --------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Shri Rani Sati Foods and Grains Private Limited (SRFGPL) continue to be 'CRISIL B/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 8 CRISIL B/Stable (Issuer Not Cooperating) Proposed Long Term 2 CRISIL B/Stable (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with SRFGPL 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 SRFGPL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SRFGPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SRFGPL continue to be 'CRISIL B/Stable Issuer Not Cooperating'. Incorporated in 2009, SRFGPL is engaged in milling of non-basmati parboiled rice. Its manufacturing facility is in Ranchi. Its operations are managed by promoters-directors Mr. Susil Poddar and Mr. Anup Gupta. REKHA CORPORATION: Ind-Ra Moves 'BB-' Rating to Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Rekha Corporation Private Limited's Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR100 mil. Fund-based facilities migrated to non-cooperating category with IND BB- (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR10 mil. Term loans due on May-2024 migrated to non- cooperating category with IND BB- (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on March 23, 2021. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Hyderabad-based Rekha Corporation is an exclusive distributor of pesticides and seeds for Syngenta India Limited. RKB GLOBAL: Ind-Ra Lowers Long-Term Issuer Rating to 'D' -------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded RKB Global Limited's (RKBGL) Long-Term Issuer Rating to 'IND D' from 'IND B+', while resolving the Rating Watch Negative (RWN). The instrument-wise rating actions are: -- INR575 mil. Fund-based limit (Long-term/Short-term) downgraded; Off RWN with IND D rating; and -- INR1.150 bil. Non-fund-based limit (Short-term) downgraded; Off RWN with IND D rating. Analytical Approach: Ind-Ra continues to take a consolidated view of RKBGL and its 100% subsidiary RKB Steel Pvt Ltd to arrive at the ratings, due to the strong legal and operational linkages between them. KEY RATING DRIVERS The rating action reflects RKBGL's delays of 77 days in servicing its packing credit loan in foreign currency (PCFC) of INR148.6 million, which was overdue. The bank had provided an extension until December 31, 2021 and the loan was fully repaid on March 17, 2022. Furthermore, the company's bank account was classified as Special Mention Account 2 category by the bank until March 17, 2022 due to delays in servicing the PCFC. RATING SENSITIVITIES Positive: Timely debt servicing for at least three consecutive months will be positive for the ratings. COMPANY PROFILE RKBGL was established as a partnership firm named M/s Rajankumar and Bros. (Impex) in 1973. The partnership firm was converted into a private limited company named RKB Global Private Limited in December 2013 and was then converted to RKBGL (unlisted) in August 2018. The company is engaged in trading of bare galvalume coils, hot-rolled coils, among others and manufacturing of roofing sheets, galvanized & corrugated sheets and electric resistance welded pipes. It also undertakes mining activities at Kalne Mines. RKBGL's head office is located in Mumbai (Maharashtra). SANTASHA REAL: NCLT Orders Start of Insolvency Proceedings ---------------------------------------------------------- Business Standard reports that the National Company Law Tribunal (NCLT) has ordered the initiation of insolvency proceedings against Santasha Real Estate. The order came on a plea filed by Vani Advertising, an operational creditor to the company that has claimed a default of INR40.77 lakh, the report says. Admitting the plea, a two-member New Delhi bench of the NCLT appointed an interim resolution professional after suspending the board of the real estate firm, according to the report. Business Standard relates that Vani Advertising, in its petition filed through its counsel Namit Saxena, had submitted that an amount of INR40.77 lakh was due on the real estate firm in return for the advertising services provided by it. According to the report, the advertising company had completed the work within the stipulated time frame as per the contract. However, the payment was not made in time and remains pending, as per the plea. "In the given fact and circumstances, the present application is complete and the operational creditor is entitled to claim its dues, which remain uncontroverted by the corporate debtor (Santasha Real Estate), establishing the default in payment of operational debt beyond doubt. "The present application is admitted, in terms of section 9 of IBC 2016," NCLT said. Section 9 of the IBC 2016 gives power to the operational creditors of a company to initiate corporate insolvency resolution process in case of a default. NCLT conducted the proceedings ex-parte in the matter, Business Standard notes. SATYASAI OIL: CRISIL Lowers Rating on INR8.8cr Cash Loan to B ------------------------------------------------------------- CRISIL Ratings has revised the ratings on bank facilities of Shri Satyasai Oil Industries and Refinery (SSIR) to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB-/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 8.8 CRISIL B/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB-/Stable ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with SSIR 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 SSIR, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SSIR is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SSIR Revised to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB-/Stable Issuer Not Cooperating'. SSIR was set up as a partnership firm of Mr.Sanjeev Kolawar and his family. The Maharashtra -based firm refines soya crude oil and markets soya refined oil. SEKISUI CHEMICAL: Voluntary Liquidation Process Case Summary ------------------------------------------------------------ Debtor: Sekisui Chemical India Private Limited 310 A, Rectangle One D-4 District Centre Saket New Delhi, South Delhi DL 110017 Liquidation Commencement Date: March 24, 2022 Court: National Company Law Tribunal Insolvency professional: Arun Gupta Interim Resolution Professional: Arun Gupta S-34, LGF, Greater Kailash-II New Delhi 110048 E-mail: arungupta2211@gmail.com sekisui.vol.liq@gmail.com Tel: 011-41066313 Last date for submission of claims: April 24, 2022 SHITALPUR MOHINDER: CRISIL Withdraws B+ Rating on INR6.50cr Loan ---------------------------------------------------------------- CRISIL Ratings has withdrawn its rating on the bank facilities of Shitalpur Mohinder Kalimata Himghar Private Limited (SMKHPL) on the request of the company and after receiving no objection certificate from the bank. The rating action is in-line with CRISIL Rating's policy on withdrawal of its rating on bank loan facilities. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 0.18 CRISIL A4/Issuer Not Cooperating (Withdrawn) Working Capital 6.50 CRISIL B+/Stable/Issuer Not Demand Loan Cooperating (Withdrawn) Working Capital 0.85 CRISIL B+/Stable/Issuer Not Loan Cooperating (Withdrawn) CRISIL Ratings has been consistently following up with SMKHPL for obtaining information through letters and emails dated March 16, 2022 and March 21, 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 SMKHPL. This restricts CRISIL Ratings' ability to take a forward-looking view on the credit quality of the entity. CRISIL Ratings believes that rating action on SMKHPL is consistent with 'Assessing Information Adequacy Risk'. CRISIL Ratings has migrated the ratings on the bank facilities of SMKHPL to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Incorporated in May 2011, SMKHPL is engaged in providing cold storage facilities to potato farmers and traders and also act as a mediator between farmers and marketers of potato. SMKHPL is based in Hooghly (West Bengal) with storage capacity of 198450 quintals. SMKHPL is owned and managed by Mr. Tarun Kanti Ghosh and others. SHREEDHAR SPINNERS: Ind-Ra Gives BB Issuer Rating, Outlook Stable ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Shreedhar Spinners Private Limited (SSPL) a Long-Term Issuer Rating of 'IND BB'. The Outlook is Stable. The instrument-wise rating actions are: -- INR400 mil. Term loan due on October 2030 assigned with IND BB /Stable rating; -- INR120 mil. Fund-based working capital limits assigned with IND BB/Stable/IND A4+ rating; and -- INR100 mil. Non-fund-based working capital limits assigned with IND A4+ rating. Analytical Approach: The rating is supported by the moderate legal, operational and strategic linkages between SSPL, its parent company, Shreedhar Cotsyn Private Limited (SCPL) (holds 96.67% stake in SSPL), and other group companies, namely Siddhartha Super Spinning Mills Limited (SSSML) and Ramkrupa Properties Private Limited (RPL). SCPL, SSSML and RPL have provided corporate guarantees for the debt undertaken by SSPL. KEY RATING DRIVERS The rating reflects the under-construction status of SSPL's cotton yarn spinning mill at Amravati, Maharashtra. The mill would have an installed capacity of 16,416 spindles, translating into 4,815 metric tons per annum. The construction of the unit is underway, and the management has informed the agency that the trial run of the mill is likely to start from June 2022 and commercial operations are likely to commence from July 1, 2022. To fund the capex, which amounts to a total of INR614.1 million, SSPL has availed a term loan of INR400 million, of which capex letter of credit for INR240 million was issued in January 2022. The letter of credit is a sub-limit of the term loan. SSPL's parent company, SCPL has invested INR145 million in the project, while promoters and other group companies have infused INR5 million as equity shares. The remaining funding of INR64.1 million has been secured in the form of unsecured loans from promoters. Liquidity indicator - Stretched: SSPL has received sanction of working capital limits of INR120 million, which will be disbursed post the commencement of operations. In the event of a delay in the completion of the remaining capex, the expenses will be funded by promoters; however, it could impact the debt service coverage ratio. SSPL does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. The ratings reflect SSPL's potential profitability being vulnerable to the volatility in cotton and yarn prices and competition from established market players. The rating, however, benefit from the unit's geographical advantage, as it is located close to the cotton market (input), thereby giving easy access to the raw material, and the Amravati railway station. Furthermore, the unit is being set up in the Amravati Textile Park, and hence, the mill would not face issues related to infrastructure, such as roads, power, water, transportation, etc., and moreover, it is likely to witness sufficient availability of skilled/semi-skilled labor. The ratings are supported by the irrevocable and unconditional corporate guarantee given by SCPL, SSSML and RPL. The other companies in the Shreedhar group are SRM Spinners Limited, Shri Nagani Silk Mills Private Limited and Himtex Textile Private Limited. The ratings also benefit from the promoters' experience of three decades in the textile business. RATING SENSITIVITIES Negative: Any delay in the commencement of operations, and achieving stability in the operating performance post the commencement of commercial operations, affecting the company's debt servicing ability, could be negative for the ratings. Positive: The timely commencement of operations and the subsequent achievement of a stable operating profitability will be positive for the ratings. COMPANY PROFILE Incorporated in December 2020, SSPL is setting up a cotton spinning plant with an installed capacity of 16,416 spindles, translating into 4,815 metric tons per annum in Amravati, Maharashtra. The registered office is at Mumbai, Maharashtra. SIDDHIVINAYAK COTFAB: Ind-Ra Assigns 'BB+' Long-Term Issuer Rating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has assigned Shree Siddhivinayak Cotfab Private Limited (SSCPL) a Long-Term Issuer Rating of 'IND BB+'. The Outlook is Positive. The instrument-wise rating actions are: -- INR100 mil. Fund-based limit assigned with IND BB+/Positive rating; and -- INR160 mil. Term loan due on October 2025 assigned with IND BB+/Positive rating. Analytical Approach: Ind-Ra has taken a consolidated view of SSCPL and its group companies Mahak Synthetics Mills Private Limited ('IND BB+'/Positive) and Shri Ambica Coatspin ('IND BB+'/ Positive), together referred to as the Mahak group hereafter, while assigning the ratings. This is because all the entities are under a common ownership and management, and have strong operational and strategic linkages among them. The Positive Outlook reflects Ind-Ra's expectation of an improvement in the group's revenue and operating EBITDA in FY22 on account of its strong operational performance in 9MFY22. The ratings reflect the group's medium scale of operations, modest operating EBITDA and credit metrics, and stretched liquidity. KEY RATING DRIVERS The group's revenue declined to INR2,596 million in FY21 (FY20: INR3,469 million) on account of COVID-19-led disruptions. During 9MFY22, the group achieved a higher revenue of about INR3,000 million owing to receipt of a higher number of orders. On a standalone basis, SSCPL achieved revenue of INR1,043 million in 9MFY22 (FY21: INR907.88 million, FY20: INR822.78 million). Liquidity Indicator – Stretched: The group's cash flow from operations turned negative to INR1.54 million in FY21 (FY20: INR197 million) due to unfavorable changes in working capital. Consequently, the free cash flow turned negative to INR15 million in FY21 (FY20: INR164 million). The group had an elongated net working capital cycle of 184 days in FY21 (FY20: 95 days) due to an increase in the inventory holding period to 87 days (62 days). The cash and cash equivalents stood at INR5.07 million at FYE21 (FYE20: INR4.86 million). It does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. On a consolidated basis, the total debt stood at INR1,379 million at FYE21 (FYE20: INR1,419 million). The group has scheduled debt repayment of about INR129 million in FY22. The promoters had extended unsecured loans to the group in the past to meet its working capital requirements. As per management, in case of a further stress in liquidity, the promoters will continue to provide financial support to the group. The group's average use of the fund-based limits was 80% during the 12 months ended February 2022. On a standalone level, the company's average maximum use of the working capital limits was 84% during the 12 months ended February 2022. SSCPL's free cash flow remained negative at INR61.92 million during FY21 (FY20: negative INR17.29 million) owing to negative cash flow from operations of INR56.48 million (negative INR16.11 million), resulting from unfavorable working capital changes. The company had a low cash balance of INR1.16 million at FYE21 (FYE20: INR1.11 million), against total outstanding debt of INR315 million (INR244 million). The ratings also reflect the group's modest credit metrics due to its modest EBITDA margins and high dependency on external debt. The interest coverage (operating EBITDA/gross interest expenses) deteriorated to 2.07x in FY21 (FY20: 2.19x), net leverage (total adjusted net debt/operating EBITDAR) to 4.8x (4.11x) and net leverage (excluding unsecured loans) to 4.19x (3.40x) due to a decrease in the operating EBITDA to INR284 million (INR344 million). During 9MFY22, the interest coverage was about 2.0x and the net leverage was about 4.0x. However, Ind-Ra expects the credit metrics to improve in FY22, due to an improvement in operating performance and partial repayment of debt. On a standalone basis, the interest coverage deteriorated to 2.37x in FY21 (FY20: 2.4x) and the net leverage to 4.13x (2.78x) owing to a decrease in the operating EBITDA to INR76 million (INR87 million) and an increase in the total debt to INR315 million (INR244 million). The ratings also factor in Mahak group's modest EBITDA margins with a return on capital employed of 7.8% in FY21 (FY20: 7.8%). The margins increased to 10.9% in FY21 (FY20: 9.93%) owing to a decline in operating expenses. During 9MFY22, the group achieved EBITDA margins of 7%-8%. However, on a standalone basis, SSCPL's margins declined to 8.39% in FY21 (FY20: 10%) owing to increase in cost of sales. During 9MFY22, the EBITDA margins stood at 5.5%. The ratings are also constrained by intense competition in the highly-fragmented textile industry, which largely has several unorganized small-sized players. Furthermore, the entry barriers are low on account of low capital requirement and technology intensity, and low differentiation in end product. However, the ratings benefit from the group's healthy operational synergies due to its vertically-integrated operations with presence in yarn manufacturing, weaving and processing. The group also benefits from the promoters' three decades of experience, leading to established relationships with its suppliers and customers. RATING SENSITIVITIES Negative: Any decline in the group's revenue and operating EBITDA, or a further elongation of the working capital cycle resulting in a further stretch in the liquidity position with net leverage (excluding unsecured loans) remaining above 4.0x would be negative for the ratings. Positive: An increase in the group's revenue and operating EBITDA, an improvement in the working capital cycle, resulting in an improvement in the liquidity position with the net leverage (excluding unsecured loans) reducing below 4.0x, all on a sustained basis, would be positive for the ratings. COMPANY PROFILE Established in 2016, SSCPL is a weaving unit wherein it procures cotton yarn and polyester yarn and converts it into gray cloth. SIPL TEXTILES: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of SIPL Textiles Private Limited (SIPL; earlier Saurer Embroidery Systems India Pvt Ltd) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 1.1 CRISIL D (Issuer Not Cooperating) Cash Credit 3.75 CRISIL D (Issuer Not Cooperating) Proposed Long Term 3.59 CRISIL D (Issuer Not Bank Loan Facility Cooperating) Term Loan 1.2 CRISIL D (Issuer Not Cooperating) Term Loan 2.86 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SIPL 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 SIPL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SIPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SIPL continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Incorporated in 1997, SIPL embroiders fabric. It was the sole marketing and servicing agent for Switzerland-based Oerlikon Saurer (manufacturer of shuttle embroidery machines) products in India. However, this business was discontinued in fiscal 2016. SIPL's manufacturing plant is in Gurgaon, Haryana. SJV TEXTILE: CRISIL Moves B+ Debt Ratings to Not Cooperating ------------------------------------------------------------ CRISIL Ratings has migrated the rating on bank facilities of SJV Textile Mills to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Foreign Letter 3.00 CRISIL B+/Stable (ISSUER NOT of Credit COOPERATING; Rating Migrated) Long Term Loan 4.15 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Overdraft Facility 2.75 CRISIL A4 (ISSUER NOT COOPERATING; Rating Migrated) CRISIL Ratings has been consistently following up with SJV for obtaining information through letters and emails dated March 8, 2022 and March 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 SJV, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SJV is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of SJV to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. SJV set up in 2018, and commenced its operations in 2019, SJV is engaged into manufacturing of fabrics. The operations of the company is being managed by the partner Mr. Chandra Kumar who has an experience of over a decade in the industry. SOUTHCO UTILITY: Ind-Ra Withdraws BB- Issuer Rating on INR720MM --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn SOUTHCO Utility's Long-Term Issuer Rating of 'IND BB-' with Rating Watch Negative. The instrument-wise rating action is: -- INR720 mil. Fund-based/non-fund-based limits is withdrawn. KEY RATING DRIVERS Ind-Ra is no longer required to maintain the ratings, as it has received a no dues certificate from the rated facilities' lender, and the limits cease to exist. COMPANY PROFILE SOUTHCO Utility was formed in March 2015, after the revocation of the license of Southern Electricity Supply Company of Odisha Limited. SOUTHCO operated in 47,000 sq. km geographical area and provided electricity to about 1.6 million consumers in its licensed area. The license area of SOUTHCO was acquired by Tata Power Company Limited ('IND AA'/Stable), under TP Southern Odisha Distribution Limited ('IND AA-'/Stable), w.e.f. January 1, 2021, with no distribution business existing within the company. SPACK LAMINATORS: CRISIL Keeps B+ Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL Ratings the ratings on bank facilities of Spack Laminators Private Limited (SLPL) continue to be 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5.8 CRISIL B+/Stable (Issuer Not Cooperating) Cash Credit 1.2 CRISIL B+/Stable (Issuer Not Cooperating) Letter of Credit 1 CRISIL A4 (Issuer Not Cooperating) Term Loan 3 CRISIL B+/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SLPL for obtaining information through letters and emails dated January 22, 2022 and February 28, 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 SLPL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SLPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SLPL continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating'. Incorporated in 1991, SLPL, promoted by Mr. R K Gupta, Mr. Ritesh Bansal, and Ms Indira Gupta, manufactures multi-layer laminations and pouches (three-layer), used for packaging in various industries such as food & grain, pharmacy, confectionary, and fast moving consumer goods. The manufacturing facility at Ghaziabad, Uttar Pradesh has an installed capacity of 5840 tonne per annum. SREEKARA ORGANICS: Ind-Ra Moves BB Issuer Rating to Non-Cooperating ------------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Sreekara Organics' Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR75 mil. Fund-based working capital limits migrated to non- cooperating category with IND BB (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR10 mil. Non-fund-based limits migrated to non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last assigned on March 1, 2021. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Established in 2000, Sreekara Organics manufactures active pharmaceutical ingredients and related intermediates at its site in the Industrial Development Area Bollaram, Sangareddy district (Telangana). SRIKARA PARENTERALS: CRISIL Keeps D Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Srikara Parenterals Private Limited (SPPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 2 CRISIL D (Issuer Not Cooperating) Funded Interest 2.58 CRISIL D (Issuer Not Term Loan Cooperating) Long Term Loan 2.52 CRISIL D (Issuer Not Cooperating) Proposed Long Term 0.72 CRISIL D (Issuer Not Bank Loan Facility Cooperating) Working Capital 2.18 CRISIL D (Issuer Not Term Loan Cooperating) Ratings has been consistently following up with SPPL 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 SPPL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SPPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SPPL continue to be 'CRISIL D Issuer Not Cooperating'. Incorporated in 2006 and based in Vijayawada (Andhra Pradesh), SPPL manufactures intravenous fluids used in the healthcare industry. The company is promoted by Mr. Gorla Naga Manikyala Rao, and its day-to-day operations are managed by Mr. Prem Raj Rayepudi. STAR BATTERY: CRISIL Keeps B+ Debt Rating in Not Cooperating ------------------------------------------------------------ CRISIL Ratings the ratings on bank facilities of Star Battery Limited (SBL) continue to be 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 1.25 CRISIL A4 (Issuer Not Cooperating) Letter of Credit 2.00 CRISIL A4 (Issuer Not Cooperating) Proposed Long Term 8.75 CRISIL B+/Stable (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with SBL 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 SBL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SBL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SBL continue to be 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating'. SBL was set up in 1986, by the promoter, Mr. SK Kejriwal. The Kolkata-based company manufactures valve-regulated and flooded lead-acid batteries, which are used in industries such as the telecommunications, railways, and solar power. SUDHEER BUILDERS: CRISIL Keeps B+ Debt Rating in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings the rating on bank facilities of Sudheer Builders & Developers (SBD) continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Secured Overdraft 10 CRISIL B+/Stable (Issuer Not Facility Cooperating) CRISIL Ratings has been consistently following up with SBD 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 SBD, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SBD is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SBD continue to be 'CRISIL B+/Stable Issuer Not Cooperating'. Established in 2012 as a partnership firm, SBD is engaged in residential and commercial real estate construction business in Vijayawada, Andhra Pradesh. The firm has four ongoing projects currently - 2 each in residential and commercial. The firm is promoted and managed by Mr. N V Sheshagiri Rao. SUSHEEL ENGINEERS: CRISIL Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings the ratings on bank facilities of Susheel Engineers (SE) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Overdraft Facility 6.5 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SE 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 SE, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SE is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SE continue to be 'CRISIL D Issuer Not Cooperating'. SE was establish in 1994 by its proprietor Mr. Sidram. G. Sidrure and is based out of Pune (Maharashtra). It manufactures boiler components, steel casing, industrial chimney, collector columns, industrial duct etc. SWADESHI TEXTILES: CRISIL Lowers Rating on INR10cr Loan to B ------------------------------------------------------------ CRISIL Ratings has revised the ratings on bank facilities of Swadeshi Textiles Private Limited (STPL) to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB-/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 10 CRISIL B/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB-/Stable ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with STPL 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 STPL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on STPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of STPL Revised to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB-/Stable Issuer Not Cooperating'. Incorporated in 2001, STPL manufactures interlining fiber and wide width fabric, which is used as a raw material for readymade garments. TARA HEALTH: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Tara Health Foods Limited (THFL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 217.54 CRISIL D (Issuer Not Cooperating) Term Loan 84.46 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up THFL 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 THFL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on THFL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of THFL continue to be 'CRISIL D Issuer Not Cooperating'. THFL was incorporated in 1977 and was acquired in 2004 by the current promoter. The company is currently owned and managed by Mr. Balwant Singh, managing director, who is a first-generation entrepreneur with about nine years of experience in the cattle-feed industry. THFL produces and supplies compounded cattle feed and refines and processes edible oil, including olive oil and blended oil, primarily in northern India. TECHNO POWER: CRISIL Keeps B Debt Ratings in Not Cooperating ------------------------------------------------------------ CRISIL Ratings said the ratings on bank facilities of Techno Power Enterprises Private Limited (TPEPL) continue to be 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 12.5 CRISIL A4 (Issuer Not Cooperating) Bank Guarantee 65 CRISIL A4 (Issuer Not Cooperating) Bank Guarantee 10 CRISIL A4 (Issuer Not Cooperating) Bank Guarantee 20 CRISIL A4 (Issuer Not Cooperating) Cash Credit 0.5 CRISIL B/Stable (Issuer Not Cooperating) Cash Credit 12 CRISIL B/Stable (Issuer Not Cooperating) Cash Credit 4.5 CRISIL B/Stable (Issuer Not Cooperating) Overdraft Facility 4 CRISIL A4 (Issuer Not Cooperating) Proposed Long Term 11.49 CRISIL B/Stable (Issuer Not Bank Loan Facility Cooperating) Term Loan 10.01 CRISIL B/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with TPEPL for obtaining information through letters and emails dated January 31, 2022 and February 28, 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 TPEPL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on TPEPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of TPEPL continue to be 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating'. Incorporated in 2000, TPEPL undertakes projects to upgrade and modernize power sub-stations and grids, and sets up power stations and grids on a turnkey basis. The business is tender-based and the company executes contracts floated by the Nagaland, Manipur, Bihar, and Jharkhand governments. It also owns a warehouse that has been leased to Haryana State Co-operative Supply and Marketing Federation Ltd, which has leased it to Food Corporation of India. UNDAVALLI CONSTRUCTIONS: Ind-Ra Moves BB+ Rating to Non-Cooperating ------------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Undavalli Constructions Private Limited's Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will continue to appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- INR900 mil. Proposed term loan migrated to non-cooperating category with IND BB+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on February 9, 2021. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Established in March 2016, Undavalli Constructions is promoted by Undavalli Ramu. The company constructs residential and commercial complexes. It is developing a residential complex, a premium gated community project named Srivalli Pravas, having eight towers comprising 668 flats of 1,150 square feet (sqft) to 4,000sqft, with a total built-up area of approximately 12,98,455sqft. The project is situated in Kaza village, near Kaza toll plaza, Guntur-Vijayawada and is close to the Acharya Nagarjuna University. ZIMIDARA PESTICIDES: CRISIL Moves B Rating to Not Cooperating ------------------------------------------------------------- CRISIL Ratings has migrated the rating on bank facilities of Zimidara Pesticides (ZP) to 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6.7 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL Ratings has been consistently following up with ZP for obtaining information through letters and emails dated March 8, 2022 and March 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 ZP, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on ZP is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of ZP to 'CRISIL B/Stable Issuer not cooperating'. Established in 1990 as a proprietorship firm by Mr. Om Prakash, ZP trades in pesticides, seeds and fertilizers. It is an authorized dealer and distributor for around 42 pesticide companies in Abohar, Punjab. ========= J A P A N ========= TOSHIBA: Bain Sounded Out Other Shareholders About Potential Offer ------------------------------------------------------------------ Reuters reports that private equity firm Bain Capital has sounded out multiple Toshiba Corp shareholders in addition to Effissimo Capital Management about a possible offer for the Japanese conglomerate, two sources said. It was not immediately clear how many shareholders Bain had approached in total, the report cites. The sources declined to be identified because they were not authorised to speak publicly about the matter, Reuters notes. Effissimo, Toshiba's top shareholder, said on March 31 it had agreed to sell its stake to Bain if the U.S. buyout firm launched a tender offer, according to Reuters. Reuters relates that Bain said late on March 31 that nothing had been decided about a takeover bid and that there were many issues that needed to be resolved to launch a bid to take Toshiba private. About Toshiba Corp. Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/-- manufactures and markets electrical and electronic products. The Company's products include digital products such as PCs and televisions, NAND flash memories, and system LSIs (large-scale integrated), as well as social infrastructures such as power generators, medical equipment, and home appliances. As reported in the Troubled Company Reporter-Asia Pacific on Nov. 18, 2021, S&P Global Ratings has placed its 'BB+' long-term issuer credit rating on Toshiba Corp. on CreditWatch with negative implications. At the same time, S&P affirmed its 'B' short-term issuer credit and commercial paper program ratings. ========= M A C A U ========= MACAO GOLDEN: Gambling Junket Operator Shuts Down ------------------------------------------------- Caixin Global reports that Macao Golden Group became the latest junket operator to shut down in Macao as Beijing steps up oversight of cross-border online gambling. In a memo to staff on March 27, the junket operator said the decision followed "careful consideration" and went into effect March 30. An insider from the Macao casino industry confirmed the memo to Caixin. Golden Group was founded by Lee Wai Man, a gambling industry veteran who has close ties to local casino tycoon Stanley Ho. He started his fortune by operating high-roller rooms at Ho's casinos. =============== M A L A Y S I A =============== SAPURA ENERGY: Gets Deferment to Service MYR10.3-Bil. Facilities ---------------------------------------------------------------- Adam Aziz at theedgemarkets.com reports that Sapura Energy Bhd has secured a temporary deferment from lenders for outstanding interest and coupon payments for its MYR10.3 billion multi-currency financing (MCF) facilities. theedgemarkets.com relates that the deferment is provided throughout the three-month restraining order given to Sapura Energy by the court, which the group has secured on March 10, to sort out its restructuring plan. According to the report, the oil and gas firm received a formal notification of the deferment from Maybank Investment Bank Bhd on March 31, in the latter's capacity as inter creditor agent for the MCF financiers. The notification also includes a standstill on related claims for the effective period of the restraining order, Sapura Energy said in its company filing, theedgemarkets.com relays. Under the MCF facilities, Sapura Energy's unit Sapura TMC Sdn Bhd has interest due and payable on March 30, 2022 for term loan facilities amounting to US$602 million (MYR2.5 billion) and MYR906 million, the report discloses. theedgemarkets.com says Sapura TMC also has sukuk periodic profit payments due and payable on March 31 for unrated sukuk murabahah amounting to US$125 million (MYR518.5 million) and MYR6.38 billion. Financiers of the MCF facilities are not bound by the restriction order given by the court to Sapura Energy's creditors. This is because Sapura Energy and its affected subsidiaries "had entered into separate contractual arrangements with a significant majority of the MCF financiers for inter alia, a standstill on claims during the effective period of the restraining order", it said, the report notes. According to theedgemarkets.com, Sapura Energy and its subsidiaries have received a slew of winding-up petitions since February over non-payment issues, following which they successfully applied for the restraining order to engage with creditors for a proposed scheme of arrangement (SOA) as part of its debt restructuring plan. A total of 22 Sapura Energy subsidiaries are involved in the SOA, as well as Sapura Energy itself. Sapura Energy Berhad, formerly SapuraKencana Petroleum Berhad, is engaged in investment holding and the provision of management services to its subsidiaries. The Company's segments include Engineering and Construction (E&C), Drilling, Energy and Corporate. ===================== N E W Z E A L A N D ===================== BARMADE LIMITED: Creditors' Proofs of Debt Due on May 13 -------------------------------------------------------- Creditors of Barmade Limited are required to file their proofs of debt by May 13, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on March 29, 2022. The company's liquidator is: Garry Whimp Blacklock Rose Limited PO Box 6709 Victoria Street West, Auckland 1142 LHD MEDIA: Creditors' Proofs of Debt Due on May 30 -------------------------------------------------- Creditors of LHD Media Limited are required to file their proofs of debt by May 30, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Feb. 2, 2022. The company's liquidators are: Christopher Carey McCullagh Stephen Mark Lawrence PKF Corporate Recovery PO Box 3678 Auckland 1140 OTAGO HOMES: Creditors' Proofs of Debt Due on May 30 ---------------------------------------------------- Creditors of Otago Homes Limited are required to file their proofs of debt by May 30, 2022, to be included in the company's dividend distribution. Thomas Lee Rodewald of Rodewald Consulting was appointed liquidator of the company on March 30, 2022. REMARKABLE EXQUISITE: Creditors' Proofs of Debt Due on April 30 --------------------------------------------------------------- Creditors of Remarkable Exquisite Design Limited are required to file their proofs of debt by April 30, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on March 31, 2022. The company's liquidator is: Dennis Clifford Parsons D. C. Parsons 38 East Street Claudelands, Hamilton ================= S I N G A P O R E ================= ATLANTIC LABRADOR: Commences Wind-Up Proceedings ------------------------------------------------ Members of Atlantic Labrador Pte Ltd, on March 25, 2022, passed a resolution to voluntarily wind up the company's operations. The company's liquidators are: Ms. Oon Su Sun Mr. Lin Yueh Hung 8 Wilkie Road #03-08 Wilkie Edge Singapore 228095 IBC CAPITAL: Moody's Lowers CFR to B3, Outlook Negative ------------------------------------------------------- Moody's Investors Service has downgraded the corporate family rating of IBC Capital Limited (Goodpack) to B3 from B2. At the same time, Moody's has downgraded the senior secured rating to B3 from B2 on the $590 million first lien term loan due September 2023 and the senior secured rating to Caa1 from B3 on the $155 million second lien term loan due September 2024. These loans are issued by Goodpack as the parent borrower and IBC Capital US LLC as the US co-borrower, and substantially guaranteed by all of Goodpack's subsidiaries. The outlook on all ratings remains negative. "The downgrades reflect Goodpack's rising refinancing risk given its large debt maturity wall in 2023 and our expectation that Goodpack's operating performance will remain weaker than we had previously expected due to supply chain disruptions and elevated freight rates," says Stephanie Cheong, a Moody's Assistant Vice President and lead analyst for Goodpack. "The negative outlook reflects the material uncertainty over the company's ability to address all its 2023 debt maturities on a timely basis amid challenging funding conditions," adds Cheong. RATINGS RATIONALE Despite significant capital expenditure relating to container purchases, Goodpack faces capacity constraints due to lengthening supply chains as well as higher freight and trucking costs. Supply chain headwinds will continue to weigh on margins for at least the next six months. While Goodpack's recent contract negotiations with customers and price increases should help to offset some of its higher costs, the company's ability to fully pass on the higher costs to its customers and its ability to manage potential further significant inflationary pressure remain key challenges for the ratings. These issues will keep Goodpack's leverage high at around 6.5x-7.0x over the next 12-18 months and create heavy reliance on its working capital (WC) facilities - (revolver and letter of credit (LC) facilities), which the company uses to fund container purchases. As of December 31, 2021, Goodpack had around $63 million undrawn under its WC facilities, which has a maximum utilization of $225 million. The approaching maturity of Goodpack's revolver and LC facility in March 2023 and $590 million first-lien term loan in September 2023 present heightened refinancing risks for the ratings. While the company is negotiating refinancing arrangements, the timing of any refinancing is uncertain particularly given the volatile market conditions. In addition, Moody's expects Goodpack's free cash flow through fiscal years ending June 30, 2022 and 2023 to remain negative, thus requiring the continued reliance on external funding to meet its upcoming debt maturities. Goodpack's B3 CFR reflect its (1) high customer, channel and supplier concentration, which exposes its business to headwinds in the automotive industry; (2) aggressive financial policies, following its acquisition by Kohlberg Kravis Roberts & Co L.P. (KKR); and (3) small scale when compared with rated peers. These factors are balanced against the company's leading position in the niche logistics market for rubber and synthetic rubber and high EBITDA margins, which are typically at or above 45%. In terms of environmental, social and governance (ESG) factors, Moody's has considered governance risk arising from Goodpack's concentrated ownership and its aggressive financial policy as demonstrated by its heightened refinancing risk and tolerance for elevated leverage following the leveraged buy-out by KKR in 2014. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Given the negative outlook, the ratings are unlikely to be upgraded over the next 12-18 months. Moreover, for the outlook to return to stable, the company should have completed the refinancing and extension of its $225 million revolver and LC facility as well as its $590 million first-lien term loan, materially strengthening its liquidity position. Moody's could further downgrade the ratings if Goodpack fails to address its upcoming debt maturities by September 2022, or if the negative impact on earnings and liquidity becomes more severe than the rating agency currently expects, such that the company's (1) financial leverage sustains above 7.5x; or (2) EBITA/interest falls below 1.0x over a prolonged period; or (3) available liquidity, defined as cash plus committed revolving facilities availability, falls below $40 million. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. IBC Capital Limited (Goodpack) was acquired by KKR in September 2014 for $1.4 billion and is an indirect wholly-owned subsidiary of a fund affiliated and advised by KKR. Headquartered in Singapore, Goodpack owns a fleet of 4.06 million intermediate bulk containers used for the packaging, transportation and storage of cargo; primarily natural rubber and synthetic rubber. PROLAND E&C: Placed in Provisional Liquidation ---------------------------------------------- Tee Wey Lih of Acres Advisory Pte Ltd on March 21, 2022, was appointed as Provisional Liquidator of Proland E&C Pte. Ltd. The Provisional Liquidator can be reached at: Mr. Tee Wey Lih Acres Advisory Pte Ltd 531A Upper Cross Street #03-128 Hong Lim Complex Singapore 051531 SEA SOLUTIONS: Court to Hear Wind-Up Petition on April 22 --------------------------------------------------------- A petition to wind up the operations of Sea Solutions Services Pte Ltd will be heard before the High Court of Singapore on April 22, 2022, at 10:00 a.m. DBS Bank Ltd filed the petition against the company on March 23, 2022. The Petitioner's solicitors are: Kelvin Chia Partnership 6 Temasek Boulevard 29th Floor, Suntec Tower Four Singapore 038986 SHINNPARK PTE: Placed in Provisional Liquidation ------------------------------------------------ Tee Wey Lih of Acres Advisory Pte Ltd on March 25, 2022, was appointed as Provisional Liquidator of Shinnpark Pte Ltd. The Provisional Liquidator can be reached at: Mr. Tee Wey Lih Acres Advisory Pte Ltd 531A Upper Cross Street #03-128 Hong Lim Complex Singapore 051531 VIKING 5050: Creditors' Proofs of Debt Due on May 4 --------------------------------------------------- Creditors of Viking 5050 Pte Ltd, Viking 5089 Pte. Ltd, Viking 5296 Pte. Ltd, Viking 5531 Pte Ltd, and Viking 5794 Pte Ltd are required to file their proofs of debt by May 4, 2022, to be included in the company's dividend distribution. The companies commenced wind-up proceedings on March 23, 2022. The companies' liquidator is: Ong Kok Yeong David c/o 80 Robinson Road #02-00 Singapore 068898 ===================== S O U T H K O R E A ===================== SSANGYONG MOTOR: External Auditor Rejects 2021 Financial Report --------------------------------------------------------------- Yonhap News Agency reports that SsangYong Motor Co. said on March 31 its annual financial report was rejected by an external auditor after its takeover deal by Edison Motors Co. collapsed. SsangYong Motor, which is under court receivership, said in a regulatory filing that Samjong KPMG gave a disclaimer of opinion for its 2021 financial report for the second consecutive year, Yonhap relates. "We have doubt over SsangYong Motor's ability to continue its business," Samjong said in a report. According to Yonhap, the auditor said it was uncertain whether the bankruptcy court would accept the cash-strapped automaker's rehabilitation plan given its low feasibility. On March 28, SsangYong said it nullified a takeover deal after a domestic consortium led by electric car maker Edison Motors failed to make a full payment to acquire the carmaker and will find a new buyer, the report relays. The SUV-focused automaker logged KRW2.4 trillion (US$2.1 billion) in sales and KRW260.6 billion in operating losses last year. It has logged deficits since 2017, Yonhap notes. About SsangYong Motor Headquartered in Kyeonggi-Do, South Korea, Ssangyong Motor Co. Ltd. engages in the manufacture and sale of automobiles. The Company mainly manufactures and sells recreational vehicles (RVs), sports utility vehicles (SUVs), multi-purpose vehicles (CDVs) and passenger cars under the brand name of Rexton Sports, Korando, Korando Sports, Korando Turismo, Tivoli, Tivoli Air and others. The Company also provides automobile parts. The Company distributes its products within domestic market and to overseas markets. Mahindra & Mahindra Ltd. acquired a 70% stake in SsangYong for KRW523 billion in 2011 and now holds a 74.65% stake in the carmaker. On Dec. 21, 2020, SsangYong Motor filed for court receivership as it struggles with snowballing debts amid the COVID-19 pandemic, according to Yonhap News Agency. The decision comes after SsangYong Motor failed to pay KRW60 billion (US$54.8 million) worth of debts to its three creditor banks. On April 15, 2021, SsangYong Motor Co. was placed under court receivership as its Indian parent Mahindra & Mahindra failed to attract an investor amid the prolonged COVID-19 pandemic and its financial status is further worsening. SsangYong and its lead manager, the EY Hanyoung accounting firm, selected a local consortium led by Edison Motors Co. as the preferred bidder for the debt-laden carmaker. SsangYong on March 28, 2022, said it has canceled the deal to sell its controlling stake to Edison Motors due to the electric bus maker's payment failure. SsangYong announced the termination of the contract with a local consortium led by Edison Motors, under which it had offered to buy the SUV-focused carmaker for KRW304.8 billion (US$249.1 million). Edison has paid 10 percent of the acquisition money but failed to pay the remaining KRW274.3 billion by the March 25 deadline. ********* 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 ***