/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/191107.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, November 7, 2019, Vol. 22, No. 223 Headlines A U S T R A L I A HIRE FORCE: First Creditors' Meeting Set for Nov. 14 LEADING EDGE: Second Creditors' Meeting Set for Nov. 14 PLATO PROJECTS: First Creditors' Meeting Set for Nov. 13 RAYKIR HOLDINGS: Second Creditors' Meeting Set for Nov. 14 STRATEGIC REWARDS: First Creditors' Meeting Set for Nov. 14 TWO GUYS: Second Creditors' Meeting Set for Nov. 14 WENDTREV PTY: First Creditors' Meeting Set for Nov. 15 I N D I A ALUBEE DIE: CRISIL Lowers Rating on INR18cr Term Loan to B+ AMRR MAHARAJA: CRISIL Lowers Rating on INR8cr Cash Loan to B+ ARAVALI CYLINDERS: CRISIL Maintains 'B' Rating in Not Cooperating ARORA CONSTRUCTION: CARE Cuts Rating on INR5.0cr LT Loan to B+ ASTRA LIGHTING: CARE Keeps 'D' Rating in Not Cooperating BD AGRO: CARE Reaffirms 'B' Rating on INR13.41cr LT Loan CALPRO SPECIALITIES: CRISIL Cuts Rating on INR4.0cr Loan to B+ DEWAN HOUSING: Faces SFIO Probe Over Financial Irregularities DEWAN HOUSING: Resolution Expected to be Finalized by End of Dec. DOLPHIN OFFSHORE: CRISIL Maintains C Rating in Not Cooperating EARTH MOVER: Insolvency Resolution Process Case Summary FORT PROJECTS: Insolvency Resolution Process Case Summary G.S.R. MOTORS: CRISIL Lowers Rating on INR8.3cr Loan to B+ GUPTA EXIM: Insolvency Resolution Process Case Summary GUPTA FOODS: CARE Keeps 'B-' Rating in Not Cooperating Category HILLARY FASHION: Insolvency Resolution Process Case Summary ISCON CRAFT: CRISIL Maintains B+ Rating in Not Cooperating J S SPINTEX: CARE Lowers Rating on INR16.74cr LT Loan to B+ KIRPA RICE: CRISIL Maintains B+ Rating in Not Cooperating LAKSHMI BALAJI: CARE Reaffirms & Withdraws 'B' Rating on Bank Loans LOTUS WOODTECH: CRISIL Maintains 'B' Rating in Not Cooperating M B MOTOR: CRISIL Maintains B+ Rating in Not Cooperating Category MARK INFRASTRUCTURE: CRISIL Cuts Rating on INR5cr Loan to D MAXTAR BIO: CARE Lowers Rating on INR10cr LT Loan to 'B' MCCL PETROCHEM LIMITED: Insolvency Resolution Process Case Summary MEGHRAJ INTERNATIONAL: CARE Cuts Rating on INR6.15cr Loan to B NEELKANTH YARN: CRISIL Lowers Rating on INR17.80cr Loan to B+ OASIS GREEN: CARE Lowers Rating on INR18cr LT Loan to 'B' P. D. INDUSTRIES: CRISIL Maintains 'B' Rating in Not Cooperating POWER SPINNING: CRISIL Keeps B+ Rating in Not Cooperating PUNEET ENTERPRISES: CRISIL Lowers Rating on INR15cr Loan to B+ R.S. FOODS: CARE Maintains 'B' Rating in Not Cooperating RAJLAXMI AGROTECH: CRISIL Migrates B+ Rating from Not Cooperating SRI GANGA: CRISIL Maintains B+ Rating in Not Cooperating TWINKLE FASHIONS: CARE Assigns 'B' Rating to INR5.50cr LT Loan UTM ENGINEERING: Insolvency Resolution Process Case Summary VICTORY INFRATECH: Insolvency Resolution Process Case Summary VIRAJ SYNTEX: CRISIL Maintains 'B+' Rating in Not Cooperating VIVEK ENTERPRISE: CRISIL Migrates 'B' Rating to Not Cooperating WHITEROSE MICRONS: CRISIL Migrates B+ Rating to Not Cooperating YOGESH POULTRY: CARE Maintains B+ Rating in Not Cooperating M A L A Y S I A IRE-TEX CORP: Falls Under PN17 Category N E W Z E A L A N D EBERT CONSTRUCTION: Debt Balloons to More than NZ$123.5MM S I N G A P O R E DEBAO PROPERTY: Could Land on Watch-List Due to 3 Years' Losses - - - - - ================= A U S T R A L I A ================= HIRE FORCE: First Creditors' Meeting Set for Nov. 14 ---------------------------------------------------- A first meeting of the creditors in the proceedings of Hire Force Australia Pty Ltd will be held on Nov. 14, 2019, at 10:00 a.m. at the offices of Cor Cordis, Level 20, at 171 Sussex Street, in Sydney, NSW. Alan Walker and Andre Lakomy of Cor Cordis were appointed as administrators of Hire Force on Nov. 4, 2019. LEADING EDGE: Second Creditors' Meeting Set for Nov. 14 ------------------------------------------------------- A second meeting of creditors in the proceedings of Leading Edge Constructions Vic Pty. Ltd. has been set for Nov. 14, 2019, at 10:30 a.m. at the offices of B.K. Taylor & Co., Meeting Room, Level 8, at 608 St. Kilda Road, in Melbourne, Victoria. 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 Nov. 13, 2019, at 5:00 p.m. Paul Vartelas of B K Taylor & Co was appointed as administrator of Leading Edge on Oct. 21, 2019. PLATO PROJECTS: First Creditors' Meeting Set for Nov. 13 -------------------------------------------------------- A first meeting of the creditors in the proceedings of Plato Projects Operations Pty Ltd will be held on Nov. 13, 2019, at 11:00 a.m. at the offices of Sinisgalli Foster Legal, Level 7, at 224 Queen Street, in Melbourne, Victoria. Andrew Beck -- andrew@greyhouse.com.au -- of Greyhouse Partners Pty Ltd was appointed as administrator of Plato Projects on Nov. 1, 2019. RAYKIR HOLDINGS: Second Creditors' Meeting Set for Nov. 14 ---------------------------------------------------------- A second meeting of creditors in the proceedings of Raykir Holdings Pty Ltd has been set for Nov. 14, 2019, at 2:00 p.m. at the offices of Jirsch Sutherland, Level 27, 259 George Street, Sydney NSW. 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 Nov. 13, 2019, at 4:00 p.m. Daniel Jean Civil of Jirsch Sutherland was appointed as administrator of Raykir Holdings on Oct. 10, 2019. STRATEGIC REWARDS: First Creditors' Meeting Set for Nov. 14 ----------------------------------------------------------- A first meeting of the creditors in the proceedings of Strategic Rewards Pty Ltd will be held on Nov. 14, 2019, at 11:00 a.m. at Level 29, at 360 Collins Street, in Melbourne. Barry Wight of Cor Cordis was appointed as administrator of Strategic Rewards on Nov. 1, 2019. TWO GUYS: Second Creditors' Meeting Set for Nov. 14 --------------------------------------------------- A second meeting of creditors in the proceedings of Two Guys One Truck Pty Ltd has been set for Nov. 14, 2019, at 11:00 a.m. at Level 27, 259 George Street, in Sydney, NSW. 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 Nov. 13, 2019, at 5:00 p.m. Daniel Jean Civil of Jirsch Sutherland was appointed as administrator of Two Guys on Oct. 10, 2019. WENDTREV PTY: First Creditors' Meeting Set for Nov. 15 ------------------------------------------------------ A first meeting of the creditors in the proceedings of Wendtrev Pty Ltd, trading as Chicken Treat Forrest Lakes and Chicken Treat Gosnells, will be held on Nov. 15, 2019, at 10:30 a.m. at the offices of Worrells Solvency & Forensic Accountants, Level 4, at 15 Ogilvie Road, in Mount Pleasant, West Australia. Mervyn Jonathan Kitay of Worrells Solvency was appointed as administrator of Wendtrev Pty on Nov. 5, 2019. ========= I N D I A ========= ALUBEE DIE: CRISIL Lowers Rating on INR18cr Term Loan to B+ ----------------------------------------------------------- CRISIL has revised the ratings on bank facilities of Alubee Die Casters (ADC) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4 CRISIL B+/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB/Stable ISSUER NOT COOPERATING') Proposed Long Term 3 CRISIL B+/Stable (ISSUER NOT Bank Loan Facility COOPERATING; Revised from 'CRISIL BB/Stable ISSUER NOT COOPERATING') Term Loan 18 CRISIL B+/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB/Stable ISSUER NOT COOPERATING') CRISIL has been consistently following up with ADC for obtaining information through letters and emails dated September 23, 2019 and September 27, 2019 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of ADC, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on ADC is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of ADC revised to be 'CRISIL B+/Stable Issuer not cooperating'. Established in the year 2004 by the brothers Mr. G. Prabhuram Mr.G. Sairam and G. Veerarragavan, ADC is engaged in the business of designing and manufacturing die and high pressure die castings of aluminium alloys and zinc which finds its application in electrical, industrial, and automobiles. AMRR MAHARAJA: CRISIL Lowers Rating on INR8cr Cash Loan to B+ ------------------------------------------------------------- CRISIL has revised the ratings on bank facilities of AMRR Maharaja Dhall Mills (AMRR) to 'CRISIL B+/Stable Issuer not cooperating' Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 8 CRISIL B+/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB+/Stable ISSUER NOT COOPERATING') Long Term Loan 4.8 CRISIL B+/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB+/Stable ISSUER NOT COOPERATING') Proposed Long Term .2 CRISIL B+/Stable (ISSUER NOT Bank Loan Facility COOPERATING; Revised from 'CRISIL BB+/Stable ISSUER NOT COOPERATING') CRISIL has been consistently following up with AMRR for obtaining information through letters and emails dated September 23, 2019 and September 27, 2019 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of AMRR, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on AMRR is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of AMRR revised to be 'CRISIL B+/Stable Issuer not cooperating' CRISIL had taken a consolidated view of Kumar Dhall Mills, AMRR Maharaja Dhall Mills and A.M.R Rathinasabapathy & Bros. This is because all these entities, together referred to as the Kumar group, are in the same business, have common products, customers, and suppliers, and share the same brand, Maharaja. Set up in 1987 by Mr. Chandra Kumar and his family, AMRR processes lentils and pulses under the Maharaja brand. It sells to various distributers across Tamil Nadu. AMRB and KDL are also in the same business. ARAVALI CYLINDERS: CRISIL Maintains 'B' Rating in Not Cooperating ----------------------------------------------------------------- CRISIL said the ratings on bank facilities of Aravali Cylinders Private Limited (SEPL) continues to be 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee .3 CRISIL A4 (ISSUER NOT COOPERATING) Cash Credit 3.97 CRISIL B/Stable (ISSUER NOT COOPERATING) Letter of Credit .75 CRISIL A4 (ISSUER NOT COOPERATING) Proposed Term Loan .48 CRISIL B/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with SEPL for obtaining information through letters and emails dated September 23, 2019 and September 27, 2019 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SEPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on SEPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of SEPL continues to be 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Incorporated in 1984, SEPL, promoted by Mr Vimal Mahipal, manufactures LPG cylinders. The company undertakes tenders from oil marketing companies Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) for supply of cylinders across India. ARORA CONSTRUCTION: CARE Cuts Rating on INR5.0cr LT Loan to B+ -------------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Arora Construction Company Private Limited (ACCPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 5.00 CARE B+; Stable; ISSUER NOT Facilities COOPERATING; Revised from CARE BB; Stable on the basis of best available information Long-term/Short 15.00 CARE B+; Stable/CARE A4; term Bank Issuer not cooperating; Facilities Revised from CARE BB; Stable/ CARE A4 on the basis of best available information Detailed Rationale & Key Rating Drivers CARE has been seeking information from ACCPL to monitor the ratings vide email communications/letters dated October 15, 2019, October 14, 2019, October 11, 2019 and numerous phone calls. However, despite CARE's repeated requests, the firm has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The rating on ACCPL's bank facilities will now be denoted as CARE B+; Stable; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above ratings. The rating has been revised by taking into account no due-diligence conducted due to non-cooperation by ACCPL with CARE'S efforts to undertake a review of the rating outstanding. CARE views information availability risk as a key factor in its assessment of credit risk. The rating has been revised by taking into account sharp decline in scale of operations and profitability and elongated collection period. The ratings are further constrained on account of presence in highly competitive industry and risk associated with tender based orders. The ratings however, draw comfort from experienced partners and moderate coverage indicators. Detailed description of the key rating drivers At the time of last rating on September 6, 2018 the following were the rating weaknesses and strengths: Key Rating Weakness Significant decline in scale of operations: The total operating income of ACCPL has declined significantly from INR50.01 crore in FY17 to INR17.25 crore in FY18 owing to lower order received for execution couple with delay in clearance from customer side resulting into slow execution of existing order book. Further, small scale limits the company's financial flexibility in times of stress and deprives it from scale benefits. Decline in net profitability coupled with deterioration in capital structure Net profitability declined from 1.51 in FY17 to 0.24 in FY18 mainly on account of lower absorption of expenses. Further, deterioration in capital structure is marked by overall gearing from 0.24 as on March 31st 2017 to 0.48 as on March 31, 2018. Elongation of collection Period The company raises bills on milestone basis i.e. on the completion of certain percentage Post the inspection, department clears the payment within 1-2 months by deducting certain of work and the same is acknowledged by client after inspection of work. Percentage of bill raised (ranging from 5-10 per cent of bill amount) in the form of retention money. The collection period elongated to 139 days for FY18 delay in realization from one of its customers. The company executes orders at different sites and has to hold minimum inventory at different sites for smooth execution. Further, the company has inventory in form of work in progress with respect to order book under execution. The same resulted into average inventory of 70 days for FY18. Company pays its supplier once it get fund from its customer resulting into average credit period of 128 days. Business risk associated with tender-based orders: The company undertakes private projects which are awarded through the tender-based system. The company is exposed to the risk associated with the tender-based business, which is characterized by intense competition. The growth of the business depends on its ability to successfully bid for the tenders and emerge as the lowest bidder. Key Rating Strengths Experienced promoters: Due to sudden demise of one of the director, Mr. Gaurav Arora, there was change in directors of the company. At present, the directors are Mr. Vipin Arora and Mr. Sundar Lal Arora. The overall operations are managed by Mr. Vipin Arora and Mr. Sunder Lal Arora. Both of them have considerable experience in the construction industry through their association with ACCPL. Moderate coverage indicators: The coverage indicators stood moderate as marked by Total Debt/ GCA and interest coverage in FY18 (provisional). Total debt/GCA deteriorated but stood moderate 6.31x in FY18 as against 1.10x in FY17, Further, Interest coverage ratio remained moderate at 6.12x in FY18 against 6.18x in FY17 on account of lower finance cost. Faridabad (Haryana) based Arora Construction Co. Private Limited (ACCPL) was incorporated in 1990. The company is managed by Mr. Vipin Arora and Mr. Sunder Lal Arora. The company is class A contractor with CPWD (Haryana). It is engaged in the construction activities such civil construction work, construction of commercial buildings and finishing activities for buildings etc. for private companies and government departments. ASTRA LIGHTING: CARE Keeps 'D' Rating in Not Cooperating -------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Astra Lighting Limited (ALL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 10.73 CARE D; ISSUER NOT COOPERATING; Facilities based on best available Information Short term Bank 0.74 CARE D; ISSUER NOT COOPERATING; Facilities based on best available information Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated October 4, 2018, placed the rating of ALL under the 'issuer noncooperating' category as Astra Lighting Limited had failed to provide information for monitoring of the rating. Astra Lighting Limited continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and email dated August 26, 2019, August 22, 2019, August 21, 2019. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Detailed description of the key rating drivers The rating takes into account instances of delays in debt servicing and company's presence in a fragmented and competitive nature of industry. Key Rating Weaknesses Instances of delays in debt servicing There were instances of delays in servicing the debt obligations. The delays are on account of weak liquidity as the company is unable to generate sufficient funds on timely manner. Highly competitive and fragmented industry The electrical industry is extremely fragmented and competitive in nature and there is competition from unorganized sector, besides presence of other large players. Astra Lighting Limited (ALL) was incorporated in 1997 with promoters and directors: Mr Paramjit Singh Chahal, Mr Parmeet Singh Chahal and Mrs Gurbir Kaur. The company is engaged in the manufacturing of High Intensity Discharge (HID) lamps used in infrastructure projects, floodlighting of monuments, stadiums, lighting of streets, highways and parking areas at its manufacturing unit located at Solan, Himachal Pradesh with total installed capacity of 15 lakh units per annum as on March 31, 2015. ALL procures raw material which mainly includes arc lights, glass shells directly from manufacturers located in the near vicinity. The company sells its products i.e. HID lamps directly to various original equipment manufacturers (OEMs) such as Bajaj Electricals Limited, OSRAM India Private Limited and Wipro Enterprises Limited etc. BD AGRO: CARE Reaffirms 'B' Rating on INR13.41cr LT Loan -------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of BD Agro Foods (BDAF), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 13.41 CARE B; Stable Reaffirmed Detailed Rationale & Key Rating drivers The rating assigned to the bank facilities of BDAF continues to remain constrained by small scale of operations and elongated operating cycle. The rating is also constrained by raw material price fluctuation risk, firm's presence in highly competitive and fragmented nature of industry and partnership nature of constitution. The rating, however, derives strength from experienced partners, moderate profitability margins and moderate capital structure. Key Rating Sensitivity Positive Factor: Improvement in debt coverage indicators as marked by interest coverage and TDGCA beyond 3x and below 8x respectively. Negative Factor: Decline in profitability margins as marked by PBILDT and PAT margins below 10% and 1.50% respectively. Detailed description of the key rating drivers Key Rating Weakness Small scale of operations The scale of operations of the firm stood small marked by total operating income of INR18.74 crore in FY19 (Prov.). However, the total operating income of the firm increased from INR11.21 crore in FY18 to INR18.74 crore in FY19 (Prov.) on account of higher orders received from the customers. The small scale limits the firm's financial flexibility in times of stress and deprives it from scale benefits. Susceptibility to fluctuation in raw material prices and monsoon dependent operations Agro-based industry is characterized by its seasonality, as it is dependent on the availability of raw materials, which further varies with different harvesting periods. Availability and prices of agro commodities are highly dependent on the climatic conditions. Adverse climatic conditions can affect their availability and leads to volatility in raw material prices. Also, there is a long time lag between raw material procurement and liquidation of inventory, the firm is exposed to the risk of adverse price movement resulting in lower realization than expected. Fragmented nature of industry coupled with high level of government regulation The commodity nature of the product makes the industry highly fragmented with numerous players operating in the unorganized sector with very less product differentiation. There are several small scale operators which are not into end-toend processing of rice from paddy, instead they merely complete a small fraction of processing and dispose-off semiprocessed rice to other big rice millers for further processing. Furthermore, the raw material (paddy) prices are regulated by government to safeguard the interest of farmers, which in turn limits the bargaining power of the rice millers. Partnership nature of constitution BDAF's constitution as a partnership firm has the inherent risk of possibility of withdrawal of the partners' capital at the time of personal contingency and firm being dissolved upon the death/retirement/insolvency of partners. Key Rating Strengths Experienced partners BDAF has been in the cold storage industry for a decade and is currently being managed by Mr. Dheeraj Gupta, Mr. Puneet Gupta, Ms. Archana Gupta and Mr. Sanjay Gupta. All the partners have a work experience of around two decades through their association with BDAF and group entities The partners have adequate acumen about various aspects of business which is likely to benefit BDAF in the long run. Moderate profitability margins The profitability margins of the firm stood moderate marked by PBILDT and PAT margin of 16.56% and 3.17%, respectively, in FY19 (Prov.). The PBILDT margin of the firm moderated from 24.37% in FY18 due to increase in raw material cost that could not be passed onto the customers owing to firm's presence in highly competitive and fragmented industry. The PAT margin, however, improved from 0.67% in FY18 to 3.17% in FY19 (Prov.) on account of decline in interest and depreciation charges during the period. Moderate capital structure The capital structure of the firm stood moderate as reflected by overall gearing ratio of 1.26x as on March 31, 2019 (Prov.). Liquidity position: Stretched The operating cycle of the firm stood elongated at 389 days for FY19 (PY: 711 days). To ensure adequate raw material procurement and timely execution of orders the firm relies on bank borrowings thus the average utilization of working capital limit stood at ~90% utilized for the past 12 months period ending September, 2019. The liquidity position of the firm stood weak marked by current ratio of 1.35x and quick ratio of 0.89x, as on march 31, 2019. About BD Agro BD Agro Foods (BDAF) was established in August 2007 as a partnership firm. The firm runs an integrated cold storage unit by engaging in procurement, cold storage and distribution of agricultural products like peas, cauliflower, capsicum, sweet corn, baby corn, etc. at its facility located in Kapurthala, Punjab with an installed storage capacity of 3000 MT per annum. The firm is also engaged in trading of potatoes. The firm purchases the vegetables directly from the farmers in Punjab, Uttarakhand and Himachal Pradesh and also has its own farms in Punjab. BDAF sells these vegetables to wholesalers across PAN India and also to big retailers like Walmart India (Best Price), etc. Income from these reputed companies constituted 10% of the total sales in FY19. The firm has four group concerns namely – Dheeraj Cold Storage Private Limited (DCS), Balaji Cold Storage (BCS), Ganpati Cold Storage (GCS) and Dheeraj Farms (DFS). CALPRO SPECIALITIES: CRISIL Cuts Rating on INR4.0cr Loan to B+ -------------------------------------------------------------- CRISIL has revised the ratings on bank facilities of Calpro Specialities Private Limited (CFPL) to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee .5 CRISIL A4 (ISSUER NOT COOPERATING; Revised from 'CRISIL A4+ ISSUER NOT COOPERATING') Cash Credit 4.0 CRISIL B+/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB-/Stable ISSUER NOT COOPERATING') Foreign Letter 7.5 CRISIL A4 (ISSUER NOT of Credit COOPERATING; Revised from 'CRISIL A4+ ISSUER NOT COOPERATING') Foreign Letter 2.0 CRISIL B+/Stable (ISSUER NOT of Credit COOPERATING; Revised from 'CRISIL BB-/Stable ISSUER NOT COOPERATING') CRISIL has been consistently following up with CFPL for obtaining information through letters and emails dated September 23, 2019 and September 27, 2019 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of CFPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on CFPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of CFPL revised to be 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. CFPL was set up in 1984 as a proprietorship firm by Mr Arun Kumar Agarwal, and was reconstituted as a private limited company in 1989. It manufactures and distributes preservatives, emulsifiers, enzymes, pectin, and stabilisers for the food and beverage industry. The manufacturing unit is in Sohna District, Haryana. Operations are managed by key promoters, Mr Arun Kumar Agarwal and his sons, Mr Amit Agarwal and Mr Ayush Agarwal. DEWAN HOUSING: Faces SFIO Probe Over Financial Irregularities ------------------------------------------------------------- BloombergQuint reports that the government has ordered a Serious Fraud Investigation Office probe into alleged financial irregularities at mortgage lender Dewan Housing Finance Corporation Ltd. after finding instances of suspected fund diversions, according to a source. DHFL came under the scanner in the wake of allegations that the company had siphoned off INR31,000 crore worth bank loans through layers of shell entities, the report says. According to BloombergQuint, the Ministry of Corporate Affairs carried out a detailed examination of the allegations of financial misdoings against the company's promoters through the Registrar of Companies. BloombergQuint relates that the RoC report indicated suspected fund diversions at the company, following which the ministry has asked the SFIO to probe the case, as per the source. On Oct. 29, a senior official said there were good enough reasons to refer the DHFL matter to the SFIO. The probe agency comes under the ministry, BloombergQuint relays. BloombergQuint meanwhile reports that a forensic audit by KPMG has reportedly found massive fund diversion by the promoters. DHFL, the third largest mortgage lender in the country, had sought a INR15,000-crore lifeline from the lenders as they finalise the resolution plan, which may also include picking up 51 percent equity in the company by converting their debt into equity, according to BloombergQuint. About Dewan Housing Dewan Housing Finance Corporation Limited (DHFL) operates as a housing finance company in India. The company's deposit products include fixed deposit products for individuals, and trusts and institutions; and corporate, recurring, and Wealth2Health deposits products. It also offers home loans, which include home improvement loans, home construction loans, home extension loans, plot loans/land loans, plot and construction loans, and balance transfer of home loans, as well as home loans for the self-employed; small and medium enterprise loans, including property term, plant and machinery, medical equipment, and business loans; mortgage loans, such as loans against property, loan for purchase of commercial premises, and loan through lease rental discounting; and NRI home loans. As reported in the Troubled Company Reporter-Asia Pacific on Sept. 19, 2019, The Hindu BusinessLine said Dewan Housing Finance Corporation Ltd (DHFL) has defaulted on principal and interest payments on NCDs aggregating INR104.54 crore. These NCDs were issued to a single investor. DHFL, in a stock exchange notice, said the gross principal amount on which the above-mentioned default occurred is INR100 crore. These 10-year secured NCDs carry a coupon of 10.05 per cent. Also, the housing finance company defaulted on interest amount of INR9.43 crore on another NCD series issued to a single investor, BusinessLine related. The gross principal amount on which this default occurred is INR100 crore. These 10-year secured NCDs carry a coupon of 9.40 per cent. Further, DHFL defaulted on interest payments aggregating INR43 lakh on NCDs carrying four unique international securities identification numbers (ISINs), which were issued to 3,404 investors via a public issue. DEWAN HOUSING: Resolution Expected to be Finalized by End of Dec. ----------------------------------------------------------------- BloombergQuint reports that bankers expect the resolution of debt-ridden mortgage lender Dewan Housing Finance Corporation Ltd. to be finalised by the end of next month, according to a banker who is part of lenders' consortium. BloombergQuint relates that the Inter-Creditor Agreement is in place for the resolution of the account and banks are looking at it, the senior banker said. The resolution would be reached by Dec. 31, the banker expressed hope amidst Serious Fraud Investigation Office probe of alleged financial irregularities committed by DHFL, the report says. Asked if the NCLT route could be taken for resolution, the banker said that all aspects are being examined, it is pre-mature to comment at the moment. According to the Reserve Bank of India's June 7 NPA resolution framework, for a resolution plan to be passed, 75 percent of lenders by value and 60 percent by numbers must approve it and sign the ICA, BloombergQuint relates. According to BloombergQuint, the banker also said that mutual funds as a category of debtors are still not on the same page. In September, DHFL had proposed a resolution plan that converted debt to equity, following which lenders would acquire 51 percent of the company. It also sought a INR15,000-crore lifeline from the lenders as they finalise the resolution plan. BloombergQuint says the resolution plan offered by DHFL proposed to convert 2.3 percent of each lender's exposure into equity at INR54 per share. The beleaguered home financier owes INR83,873 crore as of July 6, 2019 to banks, the National Housing Board, mutual funds and bondholders, including retail bondholders. The beleaguered home financier owes INR83,873 crore as of July 6, 2019 to banks, the National Housing Board, mutual funds and bondholders, including retail bondholders, adds BloombergQuint. About Dewan Housing Dewan Housing Finance Corporation Limited (DHFL) operates as a housing finance company in India. The company's deposit products include fixed deposit products for individuals, and trusts and institutions; and corporate, recurring, and Wealth2Health deposits products. It also offers home loans, which include home improvement loans, home construction loans, home extension loans, plot loans/land loans, plot and construction loans, and balance transfer of home loans, as well as home loans for the self-employed; small and medium enterprise loans, including property term, plant and machinery, medical equipment, and business loans; mortgage loans, such as loans against property, loan for purchase of commercial premises, and loan through lease rental discounting; and NRI home loans. As reported in the Troubled Company Reporter-Asia Pacific on Sept. 19, 2019, The Hindu BusinessLine said Dewan Housing Finance Corporation Ltd (DHFL) has defaulted on principal and interest payments on NCDs aggregating INR104.54 crore. These NCDs were issued to a single investor. DHFL, in a stock exchange notice, said the gross principal amount on which the above-mentioned default occurred is INR100 crore. These 10-year secured NCDs carry a coupon of 10.05 per cent. Also, the housing finance company defaulted on interest amount of INR9.43 crore on another NCD series issued to a single investor, BusinessLine related. The gross principal amount on which this default occurred is INR100 crore. These 10-year secured NCDs carry a coupon of 9.40 per cent. Further, DHFL defaulted on interest payments aggregating INR43 lakh on NCDs carrying four unique international securities identification numbers (ISINs), which were issued to 3,404 investors via a public issue. DOLPHIN OFFSHORE: CRISIL Maintains C Rating in Not Cooperating -------------------------------------------------------------- CRISIL said the ratings on bank facilities of Dolphin Offshore Shipping Limited (DOSL, part of the Dolphin Group) continues to be 'CRISIL C Issuer not cooperating' Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 1.5 CRISIL C (ISSUER NOT COOPERATING) Fund & Non Fund 3.5 CRISIL C (ISSUER NOT Based Limits COOPERATING) Proposed Long Term 7.0 CRISIL C (ISSUER NOT Bank Loan Facility COOPERATING) CRISIL has been consistently following up with DOSL for obtaining information through letters and emails dated September 23, 2019 and September 27, 2019 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of DOSL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on DOSL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of DOSL continues to be 'CRISIL C Issuer not cooperating' Furthermore, the company has not paid the fee for conducting rating surveillance as agreed to in the rating agreement. Dolphin Offshore Shipping Ltd. (DOEIL) is the flagship company of the Dolphin group and is in the business of providing a complete range of offshore support services to the oil and gas industry. The services include diving and underwater engineering services, marine operations and management (vessel management), fabrication and installation, ship repairs, geo-technical services, Engineering, Procurement and Construction activities (EPC), etc. DOSL is DOEIL's wholly-owned subsidiary and engaged in chartering of vessels and tugs to oil and gas exploration companies. EARTH MOVER: Insolvency Resolution Process Case Summary ------------------------------------------------------- Debtor: Earth Mover Consultancy Private Limited Plot No. 3 & 5, Phase-V Adityapur, Kandra Road Usha More, Gamharia Jamshedpur 832109 Jharkhand Insolvency Commencement Date: October 21, 2019 Court: National Company Law Tribunal, Kolkata Bench Estimated date of closure of insolvency resolution process: April 18, 2020 (180 days from commencement) Insolvency professional: Pramod Kumar Singh Interim Resolution Professional: Pramod Kumar Singh R.No. 309, Vikash Bhawan Aiada, Adityapur Jamshedpur 831013 E-mail: pramodip09@gmail.com cirpemc@gmail.com Last date for submission of claims: November 11, 2019 FORT PROJECTS: Insolvency Resolution Process Case Summary --------------------------------------------------------- Debtor: Fort Projects Private Limited 7/1A, Hazra Road Kolkata 700026 Insolvency Commencement Date: October 24, 2019 Court: National Company Law Tribunal, Kolkata Bench Estimated date of closure of insolvency resolution process: April 21, 2020 Insolvency professional: Pradeep Kumar Goenka Interim Resolution Professional: Pradeep Kumar Goenka AV Insolvency Professionals Pvt. Ltd. Bajarang Kunj, Room No. 412 & 413 2B, Grant Lane, 4th Floor Kolkata 700012 E-mail: goenka.pradeep@gmail.com cirp.fortprojects@gmail.com Classes of creditors: Home Buyers Insolvency Professionals Representative of Creditors in a class: Mr. Animesh Mukhopadhay Mr. Manish Jain Mr. Sudipta Ghosh Last date for submission of claims: November 7, 2019 G.S.R. MOTORS: CRISIL Lowers Rating on INR8.3cr Loan to B+ ---------------------------------------------------------- CRISIL has revised the ratings on bank facilities of G.S.R. Motors Private Limited (GSRMPL) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 8.3 CRISIL B+/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB-/Stable ISSUER NOT COOPERATING') Proposed Long Term 1.0 CRISIL B+/Stable (ISSUER NOT Bank Loan Facility COOPERATING; Revised from 'CRISIL BB-/Stable ISSUER NOT COOPERATING') CRISIL has been consistently following up with GSRMPL for obtaining information through letters and emails dated September 23, 2019 and September 27, 2019 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of GSRMPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on GSRMPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of GSRMPL revised to be 'CRISIL B+/Stable Issuer not cooperating'. Incorporated in 2008 and promoted by Mr. Rajdhar Mishra and family members, GSRMPL is an authorised dealer for Ford's automobiles and has four showrooms in Varanasi. GUPTA EXIM: Insolvency Resolution Process Case Summary ------------------------------------------------------ Debtor: M/s Gupta Exim India Private Limited Registered office: 144, DLF Industrial Area Phase-1, Faridabad Haryana 121003 Insolvency Commencement Date: October 29, 2019 Court: National Company Law Tribunal, New Delhi Bench Estimated date of closure of insolvency resolution process: April 25, 2020 (180 days from commencement) Insolvency professional: Vivek Raheja Interim Resolution Professional: Vivek Raheja c/o M/s LSI Resolution Pvt. Ltd. JD-2C, 2nd Floor Pitampura, New Delhi 110034 E-mail: vivek@vpgs.in ip.guptaexim@gmail.com Last date for submission of claims: November 11, 2019 GUPTA FOODS: CARE Keeps 'B-' Rating in Not Cooperating Category --------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Gupta Foods (GF) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 9.50 CARE B-; ISSUER NOT COOPERATING; Facilities based on best available information Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated July 6, 2018, placed the rating of GF under the 'issuer non-cooperating' category as Gupta Foods had failed to provide information for monitoring of the rating. Gupta Foods continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and email dated September 25, 2019, September 24, 2019, September 23, 2019. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Detailed description of the key rating drivers At the time of last rating on February 6, 2019 the following were the rating strengths and weaknesses: Key Rating Weaknesses Partnership nature of constitution Gupta Foods' constitution as a partnership firm has the inherent risk of possibility of withdrawal of the partners' capital at the time of personal contingency and firm being dissolved upon the death/retirement/insolvency of partners. Moreover, partnership firms have restricted access to external borrowing as credit worthiness of partners would be the key factor affecting credit decision of the lenders. Fragmented nature of industry coupled with high level of government regulation The commodity nature of the product makes the industry highly fragmented with numerous players operating in the unorganized sector with very less product differentiation. The raw material (paddy) prices are regulated by government to safeguard the interest of farmers, which in turn limits the bargaining power of the rice millers. Gupta Foods (GF) is a Punjab based, partnership firm established in 2008 by Mr. Naveen Gupta, Mr. Avinash Gupta, Mrs. Anita Gupta and Mrs. Shruti Gupta sharing profit and loss in equal proportion. The company is engaged in processing of paddy at its manufacturing facility located in Tarn Taran, Punjab having an installed capacity of processing 20,000 metric tonnes per annum (MTPA) of paddy to rice, as on March 31, 2015. GF procures paddy directly from local grain markets through commission agents located in Punjab. The company sells its products i.e. Basmati and Non-Basmati rice in Punjab and Delhi through a network of commission agents under brand name "Radhika GF". Punjab based partnership firm, Jugal Kishore & Sons (JGS) is an associate concern of GF who are engaged as commission agents (since 1980) and being looked after by Mr. Naveen Gupta, Mr. Avinash Gupta and Mrs. Uma Gupta. The partners of firm share profit and loss in equal proportion. HILLARY FASHION: Insolvency Resolution Process Case Summary ----------------------------------------------------------- Debtor: Hillary Fashion Cotfab Limited S/230, Ranipur Patia Opp. Cozy Hotel, Narol Narol, Ahmedabad 382405 Gujarat, India Insolvency Commencement Date: October 31, 2019 Court: National Company Law Tribunal, Ahmedabad Bench Estimated date of closure of insolvency resolution process: April 28, 2020 (180 days from commencement) Insolvency professional: Mr. Chandra Prakash Jain Interim Resolution Professional: Mr. Chandra Prakash Jain D-501, Ganesh Meridian Opp. Gujarat High Court S.G. Road, Ahmedabad 380060 E-mail: jain_cp@yahoo.com Last date for submission of claims: November 13, 2019 ISCON CRAFT: CRISIL Maintains B+ Rating in Not Cooperating ---------------------------------------------------------- CRISIL said the ratings on bank facilities of Iscon Craft Paper Mill Private Limited (ICPM) continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee .5 CRISIL A4 (ISSUER NOT COOPERATING) Cash Credit 5.5 CRISIL B+/Stable (ISSUER NOT COOPERATING) Letter of Credit .5 CRISIL A4 (ISSUER NOT COOPERATING) Proposed Long Term 1.81 CRISIL B+/Stable (ISSUER NOT COOPERATING) Term Loan 6.69 CRISIL B+/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with ICPM for obtaining information through letters and emails dated September 23, 2019 and September 27, 2019 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of ICPM, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on ICPM is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of ICPM continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Established in 2011, ICPM manufactures kraft paper and has the capacity of around 24,000 tonnes per annum at the plant in Vadodara (Gujarat). The company is managed by Mr. Ishwarbhai Patel, Mr. Jayantibhai Patel, Mr Devjibhai K Patel and Mr. Bharatbhai Pokar. J S SPINTEX: CARE Lowers Rating on INR16.74cr LT Loan to B+ ----------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of J S Spintex Limited, as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 16.74 CARE B+; ISSUER NOT COOPERATING; Facilities Revised from CARE BB-; Issuer not cooperating; Based on best available information Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated January 11, 2019, placed the rating of J S Spintex Limited under the 'issuer non-cooperating' category as J S Spintex Limited had failed to provide information for monitoring of the rating. J S Spintex Limited continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and email dated October 1, 2019, September 27, 2019, September 26, 2019. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Detailed description of the key rating drivers The rating has been revised on account of highly competitive and fragmented nature of industry with susceptibility to government regulations and raw-material price fluctuation risk. Key Rating Weaknesses Susceptibility of operating margins due to raw-material price fluctuation risk Historical data shows that the prices of raw cotton and cotton yarn have moved in the same direction. It has been observed in the past that the raw cotton prices are susceptible to high price volatility owing to cotton being a seasonal crop and the availability is dependent upon vagaries of nature. Thus, the above factors exposes operating margin of cotton yarn manufacturers to price volatility risk. Highly competitive and fragmented industry with susceptibility to government regulations Cotton yarn business in India is highly fragmented with presence of a large number of small and medium scale units. Due to high degree of fragmentation, small players hold very low bargaining power against both its customers as well as its suppliers resulting in such companies operating at low profit margins. The yarn prices are regulated by demand-supply market position, which in turn limits the bargaining power of the yarn manufactures. J.S. Spintex Limited (JSSL), based in Samana (Punjab), was incorporated in August, 2012 as a public limited company. It commenced operations in January, 2014. The company is currently being managed by Mr. Parminder Singh and Mr. Amandeep Singh. JSSL is engaged in manufacturing of coarse cotton yarn at its manufacturing plant located in Samana, Punjab, with total installed capacity of 4,500 MT per annum, as on June 9, 2016. The company manufactures yarn of different counts ranging from 18's to 24's depending upon the customer requirement. The yarn supplied by the company is used as raw material for manufacturing bed sheets, terry towel, foot-mats, suiting cloth, etc. KIRPA RICE: CRISIL Maintains B+ Rating in Not Cooperating --------------------------------------------------------- CRISIL said the ratings on bank facilities of Kirpa Rice Mills (KRM) continues to be 'CRISIL B+/Stable Issuer not cooperating' Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 29 CRISIL B+/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with KRM for obtaining information through letters and emails dated September 23, 2019 and September 27, 2019 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of KRM, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on KRM is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of KRM continues to be 'CRISIL B+/Stable Issuer not cooperating' KRM, established in 1998, processes and sells basmati rice. Its facility in Ladhu Ka (district Firozpur), Punjab, has milling and sortex capacity of 4 tonne per hour. LAKSHMI BALAJI: CARE Reaffirms & Withdraws 'B' Rating on Bank Loans ------------------------------------------------------------------- CARE Ratings has reaffirmed and withdrawn the outstanding ratings of CARE B; Stable; Issuer not cooperating assigned to bank facilities of Lakshmi Balaji Constructions with immediate effect. The above action has been taken at the request of Lakshmi Balaji Construction and 'No Objection Certificate' received from the bank that has extended the facilities rated by CARE. Lakshmi Balaji Construction (LBC) was setup in 2009 as a partnership firm currently managed by Mr. K. Tejo Murthy (Managing Partner) along with his spouse Mrs. Devi Bhavani (Partner). The firm is engaged in construction and sale of residential apartments with all previous and ongoing projects located in Vijayawada. The day-to-day activities of the firm are managed by Mr. Tejo Murthy. The firm is engaged in real estate development activities which include construction and selling of residential and commercial establishment. LOTUS WOODTECH: CRISIL Maintains 'B' Rating in Not Cooperating -------------------------------------------------------------- CRISIL said the ratings on bank facilities of Lotus Woodtech Private Limited (LWPL) continues to be 'CRISIL B/Stable Issuer not cooperating' Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4 CRISIL B/Stable (ISSUER NOT COOPERATING) Proposed Long Term 0.2 CRISIL B/Stable (ISSUER NOT Bank Loan Facility COOPERATING) Term Loan 1.3 CRISIL B/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with LWPL for obtaining information through letters and emails dated September 23, 2019 and September 27, 2019 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of LWPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on LWPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of LWPL continues to be 'CRISIL B/Stable Issuer not cooperating' Established in 1995, LWPL, promoted by Mr Kailash Goyal and his family, manufactures pre lam particle board (PLBD) and plywood mainly for the construction industry. Its manufacturing unit is at Rohad, Bahadurgarh (Haryana). M B MOTOR: CRISIL Maintains B+ Rating in Not Cooperating Category ----------------------------------------------------------------- CRISIL said the ratings on bank facilities of M B Motor Body Builders (MBMOBB) continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 2 CRISIL A4 (ISSUER NOT COOPERATING) Cash Credit 3.5 CRISIL B+/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with MBMOBB for obtaining information through letters and emails dated September 23, 2019 and September 27, 2019 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of MBMOBB, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on MBMOBB is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of MBMOBB continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. MBMOBB is a proprietorship firm set up by Mr B S Sharma in 1997. The firm builds bodies of various types of buses ranging from inter-city luxury buses (standard and sleeper variety) to high-end city buses. It receives orders from GSRTC, other government organisations, and private entities. The firm is based in Gandhinagar, Gujarat. MARK INFRASTRUCTURE: CRISIL Cuts Rating on INR5cr Loan to D ----------------------------------------------------------- CRISIL has downgraded its ratings on the bank facilities of Mark Infrastructure Private Limited (MIPL) to 'CRISIL D/CRISIL D' from 'CRISIL BB-/Stable/CRISIL A4+'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 5 CRISIL D (Downgraded from 'CRISIL A4+') Cash Credit 4.5 CRISIL D (Downgraded from 'CRISIL BB-/Stable') Proposed Long Term 5 CRISIL D (Downgraded from Bank Loan Facility 'CRISIL BB-/Stable') The downgrade reflects delays in servicing of debt. The delays are caused by its weak liquidity, driven by large debt-funded working capital requirements. The rating continues to have large working capital requirements and exposure to intense competition. These weaknesses are partially offset by the extensive experience of MIPL's promoters in the construction industry. Key Rating Drivers & Detailed Description Weakness * Large working capital requirement: The working capital intensity is marked by estimated gross current assets (GCA) of 240-280 days over the last three years ended March 2019 owing to higher inventory and debtor levels. * Exposure to intense competition: The Company faces competition from larger players as well as small unorganized players. The margins remain susceptible to tender based business model. Strengths * Extensive industry experience of the promoter: The promoter has an industry experience of over 30 years, over which he has developed a strong relationship with customers and suppliers, thus supporting the business risk profile. Liquidity: Poor Liquidity profile is marked by high BLU of 100% due to stretch in working capital requirements. The company has delayed in repayment of debt owing to poor liquidity. Rating Sensitivity Factors Upward Factors * Track record of timely debt servicing for at least over 90 days * Sustained improvement in financial risk profile, especially liquidity. Incorporated in 1998 by Mr Vemuri Ravi Kiran, Hyderabad-based MIPL undertakes civil construction works related to construction of buildings. MAXTAR BIO: CARE Lowers Rating on INR10cr LT Loan to 'B' -------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Maxtar Bio Genics, as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 10.00 CARE B; ISSUER NOT COOPERATING Facilities Revised from CARE B+; Issuer not cooperating Based on best available information Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated December 11, 2018, placed the rating of Maxtar Bio Genics under the 'issuer noncooperating' category as Maxtar Bio Genics had failed to provide information for monitoring of the rating. Maxtar Bio Genics continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and email dated October 14, 2019, October 4, 2019, October 3, 2019. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Detailed description of the key rating drivers The rating has been revised on account of exposure to regulatory risk and partnership nature of constitution. Key Rating Weaknesses Exposure to regulatory Risk: The Pharmaceutical industry is a closely monitored and regulated industry and as such there are inherent risks and liabilities associated with the products and their manufacturing. Furthermore, issues like price control of essential medicines by the Government of India through the Drug (Prices Control) Order, 2013, pose regulatory risk for the Pharmaceutical industry. Partnership nature of its constitution: MBG's constitution as a partnership firm has the inherent risk of possibility of withdrawal of the partners' capital at the time of personal contingency and the firm being dissolved upon the death/retirement/insolvency of partners. Maxtar Bio Genics (MBG) was established as a partnership firm in 2007 and is currently being managed by Mr Madan Lal Bansal and Mr Jagdish Chand Bansal, sharing profit and loss equally. The firm is engaged in the manufacturing and selling of generic drug formulations at its manufacturing facility in Baddi, Himachal Pradesh with total installed capacity of manufacturing 2000 million tablets and 365 million capsules per annum as on June 30, 2017. The firm is present across various therapy areas including anti-diabetic, anti-infective, anti-fungal, neuropsychiatry, gastroenterology, cardiovascular, etc. MCCL PETROCHEM LIMITED: Insolvency Resolution Process Case Summary ------------------------------------------------------------------ Debtor: MCCL Petrochem Limited GC-22, Ground Floor Khosla House, Shivaji Encalve Near Shivaji College, New Delhi New Delhi DL 110027 IN Insolvency Commencement Date: October 23, 2019 Court: National Company Law Tribunal, New Delhi Bench Estimated date of closure of insolvency resolution process: April 27, 2020 Insolvency professional: Pankaj Khetan Interim Resolution Professional: Pankaj Khetan H-38, LGF Jangpura Extension Near Eros Complex New Delhi 110014 E-mail: pankaj.khetan@yahoo.com - and - K-37/A, Basement, Kailash Colony New Delhi 110048 E-mail: cirpmcclpetrochem@gmail.com Last date for submission of claims: November 13, 2019 MEGHRAJ INTERNATIONAL: CARE Cuts Rating on INR6.15cr Loan to B -------------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Meghraj International, as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 6.15 CARE B; Stable; ISSUER NOT Facilities COOPERATING, Revised from CARE B+; Stable; Issuer not Cooperating Based on best available information Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated February 6, 2019, placed the rating of Meghraj International under the 'issuer non-cooperating' category as Meghraj International had failed to provide information for monitoring of the rating. Meghraj International continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and email dated September 30, 2019, September 27, 2019, September 23, 2019. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Detailed description of the key rating drivers The rating has been revised on account of vulnerability of profit margins to fluctuation in the prices of commodities, firm's presence in a competitive nature of industry and partnership nature of constitution. Key Rating Weaknesses Vulnerability of profit margins to fluctuation in the prices of commodities The prices of agricultural commodities are volatile in nature and are linked to production in the domestic market and global demand-supply situation. The prices of agri-commodities are also affected by the changes in government regulations and vagaries of weather. Thus, the profitability of MGI is vulnerable to fluctuation in prices of the commodities in which it operates. Presence in a competitive nature of industry MGI operates in a highly competitive and unorganized market for agrocommodities with the presence of large number of small players. The industry is characterized by low entry barriers due to minimal capital required and easy access to clients and suppliers. The prices are driven primarily by the existing demand and supply conditions with strong linkage to the global market. Players in the industry face high competition on largely due to the presence of small job/contract manufacturer and fragmented nature of the industry. Constitution of the entity being a partnership firm MGI's constitution as a partnership firm has the inherent risk of possibility of withdrawal of the partners' capital at the time of personal contingency and the firm being dissolved upon the death/retirement/insolvency of partners. Meghraj International (MGI) is a partnership firm established in June, 2009 by Mr Ramesh Jindal and Mr Ashish Jindal, sharing profit and loss equally. The firm is engaged in manufacturing of guar gum and guar meal at its manufacturing facility located at Hisar, Haryana having an installed capacity of 180,000 metric ton per annum (MTPA) as on March 31, 2016. NEELKANTH YARN: CRISIL Lowers Rating on INR17.80cr Loan to B+ ------------------------------------------------------------- CRISIL has revised the ratings on bank facilities of Neelkanth Yarn (NY) to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee .05 CRISIL A4 (ISSUER NOT COOPERATING; Revised from 'CRISIL A4+ ISSUER NOT COOPERATING') Cash Credit 17.80 CRISIL B+/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB/Stable ISSUER NOT COOPERATING') Letter of Credit 6.15 CRISIL A4 (ISSUER NOT COOPERATING; Revised from 'CRISIL A4+ ISSUER NOT COOPERATING') Proposed Cash 1.00 CRISIL B+/Stable (ISSUER NOT Credit Limit COOPERATING; Revised from 'CRISIL BB/Stable ISSUER NOT COOPERATING') CRISIL has been consistently following up with NY for obtaining information through letters and emails dated September 23, 2019 and September 27, 2019 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of NY, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on NY is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of NY revised to be 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. NY was set up in 2009 as a partnership firm by Mr Anil Rungta and Mr Arun Aggarwal. The firm trades in all varieties of yarn. It has offices in Parwanoo and Nalagarh in Himachal Pradesh; Chandigarh; Ludhiana; and Delhi. OASIS GREEN: CARE Lowers Rating on INR18cr LT Loan to 'B' --------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Oasis Green Energy Private Limited (OGE), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 18.00 CARE B; ISSUER NOT COOPERATING; Facilities Revised from CARE B+; ISSUER NOT COOPERATING on the basis of best available information Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated July 6, 2018, placed the rating of OGE under the 'issuer non-cooperating' category as OGE had failed to provide information for monitoring of the rating. OGE continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and email dated August 26, 2019, August 22, 2019, August 21, 2019. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Detailed description of the key rating drivers The rating has been revised on account of small scale of operations with net losses and leveraged capital structure. Key Rating Weaknesses Small scale of operations coupled with net losses The total operating income of the company stood small at INR3.59 crore with net losses of INR0.68 crore in FY18. Weak capital structure The overall solvency position stood weak marked by overall gearing ratio of 6.32x as on March 31, 2018. Oasis Green Energy Private Limited (OGEPL), incorporated in March 2015, is setting up a 3.15 MW solar Photovoltaic (PV) Power Plant in Village Bahadarpur, District Mansa, Punjab. The company is promoted by Mr Mukesh Goyal and Mr Pawan Goyal who are also the promoters of Oasis Contractors and Consultants Pvt. Ltd. (OCCPL; engaged in the business of civil construction). P. D. INDUSTRIES: CRISIL Maintains 'B' Rating in Not Cooperating ---------------------------------------------------------------- CRISIL said the ratings on bank facilities of P. D. Industries Private Limited (PDIPL) continues to be 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 1.5 CRISIL A4 (ISSUER NOT COOPERATING) Cash Credit 13.0 CRISIL B/Stable (ISSUER NOT COOPERATING) Letter of Credit 13.5 CRISIL A4 (ISSUER NOT COOPERATING) Proposed Long Term 2.0 CRISIL B/Stable (ISSUER NOT Bank Loan Facility COOPERATING) CRISIL has been consistently following up with PDIPL for obtaining information through letters and emails dated September 23, 2019 and September 27, 2019 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of PDIPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on PDIPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of PDIPL continues to be 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. PDIPL was incorporated in 1992 and manufactures coal-based sponge iron. The company has a manufacturing plant in Raipur (Chhattisgarh) with an installed capacity of 60,000 tonnes per annum PDIPL purchases iron ore largely from iron ore mines in Orissa and NMDC Ltd and coal from South Eastern Coalfields Ltd. POWER SPINNING: CRISIL Keeps B+ Rating in Not Cooperating --------------------------------------------------------- CRISIL said the ratings on bank facilities of Power Spinning Mills (PSM) continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7 CRISIL B+/Stable (ISSUER NOT COOPERATING) Letter of Credit 6 CRISIL A4 (ISSUER NOT COOPERATING) CRISIL has been consistently following up with PSM for obtaining information through letters and emails dated September 23, 2019 and September 27, 2019 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of PSM, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on PSM is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of PSM continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Set up in 2003 as a partnership firm, PSM manufactures cotton yarn. The Tirupur-based firm is managed by Mr Murugaswamy and Mr Swaminathan. PUNEET ENTERPRISES: CRISIL Lowers Rating on INR15cr Loan to B+ -------------------------------------------------------------- CRISIL has revised the ratings on bank facilities of Puneet Enterprises - Aurangabad (PE) revised to be 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 15 CRISIL B+/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB+/Stable ISSUER NOT COOPERATING') CRISIL has been consistently following up with PE for obtaining information through letters and emails dated September 23, 2019 and September 27, 2019 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of PE, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on PE is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of PE revised to be 'CRISIL B+/Stable Issuer not cooperating'. PE, a sole proprietorship concern of Mr Rasdeepsingh M Chawla and set up in 2002, is engaged in ginning and pressing of cotton and also extracts oil from cotton seeds. Its manufacturing facilities are located in Sillod, Aurangabad (Maharashtra) and Gunupur (Odisha). The firm has ginning capacity of 8.01 lakhs quintals per annum and oil extraction capacity of 4.55 lakhs quintals per annum. R.S. FOODS: CARE Maintains 'B' Rating in Not Cooperating -------------------------------------------------------- CARE Ratings said the rating for the bank facilities of R.S. Foods continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 8.00 CARE B; ISSUER NOT COOPERATING; Facilities based on best available information Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated February 6, 2019, placed the rating of R.S. Foods under the 'issuer non-cooperating' category as R.S. Foods had failed to provide information for monitoring of the rating. R.S. Foods continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and email dated September 30, 2019, September 27, 2019, September 23, 2019. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Detailed description of the key rating drivers At the time of last rating on February 6, 2019 the following were the rating strengths and weaknesses: Key Rating Weaknesses Small scale of operations along with low profitability margins Owing to limited track record of operations, the firm's scale of operations has remained small marked by Total Operating Income (TOI) of INR 25.16 crore in FY17.The small scale of operations limits the firm's financial flexibility in times of stress and deprives it from scale benefits. Furthermore, the profitability margins of the firm continued to remain low marked by PBILIDT margin and PAT margin of 3.59% and 0.95% respectively in FY17 due to its presence in highly fragmented and competitive industry. Leveraged capital structure The capital structure of the firm stood leveraged with overall gearing ratio of 8.85x as on March 31, 2017. Furthermore, the total debt to GCA ratio stood weak at 23.84x for FY17 however, the interest coverage ratio stood moderate at 2.04x in FY17. Susceptibility to fluctuation in raw material prices and monsoon dependent operations Agro-based industry is characterized by its seasonality, due to its dependence on raw materials whose availability is affected directly by the vagaries of nature. Adverse climatic conditions can affect their availability and leads to volatility in raw material prices. Any sudden spurt in the raw material prices may not be passed on to customers completely owing to firm's presence in highly competitive industry. Partnership nature of constitution RSF's constitution as a partnership firm has the inherent risk of possibility of withdrawal of the partners' capital at the time of personal contingency and firm being dissolved upon the death/retirement/insolvency of partners. Fragmented nature of industry coupled with high level of government regulation The commodity nature of the product makes the industry highly fragmented with numerous players operating in the unorganized sector with very less product differentiation. Furthermore, the raw material (paddy) prices are regulated by government to safeguard the interest of farmers, which in turn limits the bargaining power of the rice millers. Key Rating Strengths Experienced partners RSF is currently being managed by Mr. Ram Lal Singla and Mr. Atul Singla. Mr. Ram Lal Singla has a work experience of around three decades in the rice industry as a partner in Anand Rice Mills and in the textile industry as a partner in Gupta Cloth House. Mr. Atul Singla has a work experience of two years through his association with RSF only. Location advantage RSF's manufacturing unit is located in Karnal, Haryana which is one of the hubs for paddy/rice, leading to its easy availability which is the key raw material for the processing of rice. The unit is also in proximity to the grain market resulting in procurement at competitive rates. R.S. Foods (RSF) was established in April, 2015 as a proprietorship firm by Mr. Satish Kumar. The constitution was converted into a partnership firm in April 2016 and is currently being managed by Mr. Ram Lal Singla and Mr. Atul Singla as its partners sharing profit and losses equally. The firm is engaged in processing of paddy and trading of rice at its manufacturing facility in Karnal, Haryana with an installed capacity of processing 2880 tonnes of paddy per annum as on November 6, 2017. RAJLAXMI AGROTECH: CRISIL Migrates B+ Rating from Not Cooperating ----------------------------------------------------------------- Due to inadequate information, CRISIL, in-line with the Securities and Exchange Board of India guidelines, had migrated its ratings on the bank facilities of Rajlaxmi Agrotech India Private Limited (RAIPL) to 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating'. However, the company has subsequently started sharing information necessary for carrying out a comprehensive review of the ratings. Consequently, CRISIL is migrating its ratings to 'CRISIL B+/Stable/CRISIL A4' from 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4.5 CRISIL B+/Stable (Migrated from 'CRISIL B+/Stable ISSUER NOT COOPERATING') Letter of Credit 9.0 CRISIL A4 (Migrated from 'CRISIL A4 ISSUER NOT COOPERATING') Warehouse Financing 7.5 CRISIL B+/Stable (Migrated from 'CRISIL B+/Stable ISSUER NOT COOPERATING') The ratings reflect modest scale of operations, working capital intensive operations and weak financial risk profile. These weaknesses are partly offset by the extensive experience of the promoters. Key Rating Drivers & Detailed Description Weaknesses * Modest scale of operations: Revenue of INR43.5 crore in fiscal 2019 and installed capacity of 60,000 tonne per annum reflect the modest scale of operations, which limits RAIPL's bargaining power with suppliers and customers. Demand for fertilisers is largely dependent on the timing and extent of monsoon. * Below-average financial risk profile: Financial risk profile is expected to remain below-average over the medium term. Networth was INR9.8 crore and total outside liabilities to tangible networth ratio 3.37 times as on March 31, 2019. Debt protection metrics were also weak, with interest coverage and net cash accrual to total debt ratios of 2.1 times and 0.1 time, respectively, for fiscal 2019. * Working capital-intensive operations: Gross current assets were 289 days as on March 31, 2019, driven by large inventory. Operations are likely to remain working capital intensive over the medium term. Strength * Extensive experience of the promoters: Benefits from the promoters' experience of over two decades, their strong understanding of local market dynamics, and healthy relations with suppliers, customers, and logistic providers, should continue to support the business. Liquidity: Stretched Liquidity is stretched on account of low cash accruals and high bank limit utilisation but is supported by unsecured loans from associate concern. Bank limit has remained fully utilised over the last 12 months. Unsecured loans of INR4.81 crore (as on March 31, 2019) are primarily from associate company and are likely to remain in the business. Outlook: Stable CRISIL believes RAIPL will continue to benefit from the extensive experience of its promoters. Rating sensitivity factor Upward factor * Sustained improvement in scale of operation with stable operating margin, leading to cash accruals of over INR4 crore. * Efficient working capital management. Downward factor * Fall in cash accruals to below INR1.5 crore * Fall in operating performance of the company Incorporated in 1995, RAIPL, promoted by Mr Sagar Shriram Chidrawar and Ms Sheela Shriram, manufactures fertilisers such as single super phosphate. The manufacturing facility is at Jalna, Maharashtra. SRI GANGA: CRISIL Maintains B+ Rating in Not Cooperating -------------------------------------------------------- CRISIL said the ratings on bank facilities of Sri Ganga Mills (SGM) continue to be 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee .03 CRISIL A4 (ISSUER NOT COOPERATING) Bill Discounting .05 CRISIL B+/Stable (ISSUER NOT COOPERATING) Cash Credit 4.00 CRISIL B+/Stable (ISSUER NOT COOPERATING) Key Cash Credit 1.15 CRISIL B+/Stable (ISSUER NOT COOPERATING) Long Term Bank .45 CRISIL B+/Stable (ISSUER NOT Facility COOPERATING) Proposed Long Term .57 CRISIL B+/Stable (ISSUER NOT Bank Loan Facility COOPERATING) CRISIL has been consistently following up with SGM for obtaining information through letters and emails dated September 23, 2019 and September 27, 2019 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SGM, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on SGM is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of SGM continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Setup in 1993, Aruppukotai (Tamil Nadu)-based Sri Ganga Mills (SGM) is engaged in manufacturing of cotton yarn. The operations of the company are managed by the partners, Ms. Vishnu Ganga, Ms. Aishwarya Ganga, Ms. Sudha Rani and Ms. Sudha Maheshwari. TWINKLE FASHIONS: CARE Assigns 'B' Rating to INR5.50cr LT Loan -------------------------------------------------------------- CARE Ratings has assigned rating to the bank facilities of Twinkle Fashions (TF), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 5.50 CARE B; Stable Assigned Short-term Bank Facilities 2.20 CARE A4 Assigned Detailed Rationale & Key Rating Drivers The rating assigned to the bank facilities of TF are primarily tempered by small scale of operations with fluctuating total operating income, leveraged capital structure and debt coverage indicators, working capital intensive nature of operations, competition due to fragmented nature of industry and constitution of the entity as proprietorship with inherent risk of withdrawal of capital. However, the rating derives comfort from long track record of operations and vast experience of the proprietor, healthy PBILDT margins albeit declining and thin PAT margins, reputed clientele base with healthy demand outlook for readymade garment industry. Going forward, the ability of the firm to improve its scale of operations, capital structure, debt coverage indicators and efficient to manage its working capital requirements will be the key sensitivities. Rating Sensitivities Positive Factor * Increase in Total operating income along with improvement in capital structure marked by overall gearing on a sustained basis by efficiently manages its working capital requirement by improving operating cycle. * Significant increase in gross cash accruals/reducing the debt levels to improve its TD/GCA on a sustained basis. Negative Factor * Decline in PBILDT margins on a sustained basis. Detailed description of the key rating drivers Key Rating Weaknesses Small scale of operations with fluctuating total operating income during the review period The scale of operations stood small marked by total operating income stood at INR22.59 crore in FY18 along with low networth base of INR1.74 crore as of March 31, 2018. In FY18, the firm derived 95% (FY17:80%) of its operating income from domestic sales while the remaining was driven from exports. The firm reported operating income of INR33.53 crore in FY16 on account of adequate orders received and executed. However, the operating income dropped to INR21.11 crore in FY17 on account of limited orders bagged and executed as a result of subdued condition in the market and further marginally increased to INR22.59 crore in FY18 on account of orders executed with higher margins. Financials risk profile marked by leveraged capital structure and weak debt coverage indicators The capital structure marked by overall gearing stood leveraged at 4.18x as of March 31, 2017 deteriorated from 1.99x as on March 2016 on account of increase in total debt in terms of working capital borrowings. The gearing further deteriorated to 5.53x as of March 31, 2018 on account of decrease in tangible net worth due to capital withdrawal. However, the debt equity remained below unity throughout the review period on account of schedule repayments of long term loans. TD/GCA stood weak at 23.33x in FY18 although it improved from 37.18x in FY17 due to decrease in total debt level coupled with increase in cash accruals. Interest coverage declined marginally at 1.29x in FY18 as compared to 1.35x in FY17 due to increase in interest and finance cost, however in FY16 it stood satisfactory at 2.40x on account of relatively lower bank borrowings as compared to other years. Working capital intensive nature of operations The firm is engaged in a working capital as well as labour intensive nature of operations. The inventory is stocked for 2-3 months for basic model; however the lead time for inventory may extend beyond 90 days for specialized garments in order to ensure quality of the fabric. The firm extends the credit period upto 90 days to its customers and makes the payment to its creditors upto 120 days depending on the realization of payment from its debtors. To bridge the above gap, the firm is highly dependent on working capital limits. Due to the above factors, the average utilization of the fund based limits remained at 95% for the last 12 months ended August 26, 2019. Competition due to fragmented nature of industry TF faces stiff competition in the business from large number of established and unorganized players in the market. Competition gets strong with the presence of unorganized players leading to pricing pressures. However, improved demand scenario of ready-made garment segment in domestic and international markets enables well for the entity. Constitution of the entity as proprietorship with inherent risk of withdrawal of capital Proprietorship nature of business has an inherent risk of withdrawal of capital by the proprietor at the time of their personal contingencies resulting in erosion of capital base leading to adverse effect on capital structure. Stretched Liquidity Liquidity is marked by tightly matched accruals to repayment obligations, highly utilized bank limits and modest cash balance. The firm had debt repayment of INR0.20 crore in FY17 met through the internal accruals generated during the year (GCA of Rs.0.87 crore in FY16). It had cash and bank balance that stood at INR2.45 crore of the firm as against term debt of INR0.27 crore as on March 31, 2018. The current and quick ratio stood below unity at 0.81x and 0.38x, respectively as of March 31, 2018 (PY: 0.80x and 0.40x, respectively). The unutilized portion of working capital borrowings stood at 5% on a 12 months (July 2019) average. Key Rating Strengths Long track record of operations and vast experience of the proprietor for nearly three decade in manufacturing of readymade garment industry TF is promoted by Mr. K. Chidambaram, who is qualified in B.com, CA (Inter) has extensive experience of more than two decades in ready-made garments industry. Prior to establishment of Twinkle fashions, he was engaged in textile processing on small scale basis. The long track record of operations and vast experience of the proprietor for nearly three decade in readymade garment segment is expected to benefit in future also. Healthy PBILDT margins albeit declining and thin PAT margins The profitability margin of the firm driven by nature and size of order received. The PBILDT margin increased from 5.64% in FY16 to 6.92% in FY17 and further to 8.71% in FY18 owing to execution of orders with higher margin. The PAT margins of the firm stood thin marked by 0.43% in FY18 declined from 1.31% in FY17 on the account of increase in interest and finance cost as a result of increased utilization of working capital limits during that year along with increase in depreciation cost, however in FY16 stood at 2.08% on account of relatively lower bank borrowings as compared to other years. Reputed clientele base The firm undertakes orders for customers in the textile industry which are having reputed brand name in manufacturing, wholesale and retail apparel segment. Due to increase demand from customers, the firm is selling their products through online platform in the name of Twinkle fashions. Healthy demand outlook for readymade garments segment The demand for garments has been growing, especially with digitization, social networking sites and apps ensuring that people look their best. Demand for textiles is also marked by a craze for "fast fashion" (phenomenon of production and sales of constantly renewed and generally cheap collections) on the Asian market. The sector is expected to grow strongly, at around 9.5% average growth per year, over the next five years. Population growth in the region should reinforce this trend over the longer term. Twinkle Fashions (TF) was established as a proprietorship firm in 1995 by Mr. K Chidambaram in Tirupur, Tamil Nadu. The firm is mainly engaged in manufacturing of readymade garments. The firm derives revenue from local (95%) and export sales (5%) such as sweat shirts, track pants, kids wear and women's wear. Twinkle fashions has an installed capacity of 300 seaters to manufacture one lakh pieces/month. On receipt of orders TF purchases the raw material such as yarn mainly from Bhuvaneswari Tex, Sri Kannapiran Mills Limited, Sulochana Cotton Spinning Mills Private Limited among others and it outsources for dyeing, knitting, bio wash. The firm collects the processed fabric for further cutting, threading, stitching and packing. UTM ENGINEERING: Insolvency Resolution Process Case Summary ----------------------------------------------------------- Debtor: M/s UTM Engineering Private Limited Registered office: (As mentioned in order dated October 17, 2019) Plot No. 28, KH.No. 154/14 Block C, Shiv Enclave Najafgarh, PPF No. NJF Delhi 110043 - and - (As per latest MCA record dated October 30, 2019) Plot No. 26/27/28, Gali no. 2 Block B Ugrasen Park Nangloi Road, Najafgarh Delhi South West Delhi DL 110043 IN Insolvency Commencement Date: October 17, 2019 Court: National Company Law Tribunal, New Delhi Bench Estimated date of closure of insolvency resolution process: April 14, 2020 (180 days from commencement) Insolvency professional: Mr. Rajesh Jangra Interim Resolution Professional: Mr. Rajesh Jangra The Chambers of Jangra & Associates ED-15 C, Pitampura Delhi 110034 E-mail: jangraadvocate@gmail.com utm.cirp@gmail.com Last date for submission of claims: November 12, 2019 VICTORY INFRATECH: Insolvency Resolution Process Case Summary ------------------------------------------------------------- Debtor: Victory Infratech Private Limited 208, Gupta Tower, Azadpur Azadpur Commercial Complex Delhi 110033 India E-mail: info@victoryinfra.com Insolvency Commencement Date: October 21, 2019 Court: National Company Law Tribunal, New Delhi Bench Estimated date of closure of insolvency resolution process: April 18, 2020 (180 days from commencement) Insolvency professional: Mr. Aishwarya Mohan Gahrana Interim Resolution Professional: Mr. Aishwarya Mohan Gahrana D-74-76, 2nd Floor BK Dutt Colony New Delhi, Delhi 110003 India E-mail: aishwaryam_gahrana@yahoo.com cirp.victory@gmail.com Classes of creditors: Real Estate Investors Insolvency Professionals Representative of Creditors in a class: Mr. Rakesh Kumar Jain Flat J-6, 2nd Floor Pocket 9A, Jasola New Delhi 110025 Mr. Suman Kumar B-106, Basement Amar Colony Lajpat Nagar IV 1100024 Mr. Vijay Kuamr Chopra Apartment Flat No. 264 Sector-8 Sector-23 Dwarka, New Delhi 110077 Last date for submission of claims: November 11, 2019 VIRAJ SYNTEX: CRISIL Maintains 'B+' Rating in Not Cooperating ------------------------------------------------------------- CRISIL said the ratings on bank facilities of Viraj Syntex Private Limited (VSPL) continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4.15 CRISIL B+/Stable (ISSUER NOT COOPERATING) Inland Guarantees .50 CRISIL A4 (ISSUER NOT COOPERATING) Inland/Import 1.00 CRISIL A4 (ISSUER NOT Letter of Credit COOPERATING) Packing Credit 1.35 CRISIL A4 (ISSUER NOT COOPERATING) Proposed Long Term 1.94 CRISIL B+/Stable (ISSUER NOT Bank Loan Facility COOPERATING) Term Loan 2.06 CRISIL B+/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with VSPL for obtaining information through letters and emails dated September 23, 2019 and September 27, 2019 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of VSPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on VSPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of VSPL continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. VSPL, incorporated in 1994 by the Kanpur based Kohli family, manufactures braided cords/ropes, personal protective equipment, material handling equipment, and load strapping equipment for the infrastructure, automotive, airforce, and defence industries. VIVEK ENTERPRISE: CRISIL Migrates 'B' Rating to Not Cooperating --------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Vivek Enterprise - Junagadh (VE) to 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 10 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Migrated) Long Term Loan 1 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with VE for obtaining information through letters and emails dated September 23, 2019 and September 27, 2019 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of VE, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on VE is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of VE to 'CRISIL B/Stable Issuer not cooperating'. Established in 2011, VE is a proprietorship firm promoted by Mr Jinesh Desai and is engaged in processing of ground nut and trading of agro commodities. WHITEROSE MICRONS: CRISIL Migrates B+ Rating to Not Cooperating --------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Whiterose Microns LLP (WML) to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 0.7 CRISIL A4 (ISSUER NOT COOPERATING; Rating Migrated) Cash Credit 2.25 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Rupee Term Loan 7.00 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with WML for obtaining information through letters and emails dated July 17, 2019, September 23, 2019 and September 27, 2019 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of WML, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on WML is consistent with 'Scenario 2' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BBB' category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of WML to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. WML, set up in 2017 at Morbi, manufactures soda and potassium-based feldspar powder. The manufacturing facility has installed capacity of 1.20 lakh tonne per annum. Mr Shailesh Ranchhodbhai Chapani and Mr Kalpeshkumar Mansukhbhai Rangpadiya are the promoters. YOGESH POULTRY: CARE Maintains B+ Rating in Not Cooperating ----------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Yogesh Poultry and Breeding Farm continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 8.04 CARE B+; ISSUER NOT COOPERATING; Facilities based on best available information Detailed Rationale & Key Rating Drivers CARE has been seeking no default statement from Yogesh Poultry and Breeding Farm to monitor the rating vide e-mail communications dated October 10, 2019, October 9, 2019, October 4, 2019, October 1, 2019, September 30, 2019, September 23, 2019, September 11, 2019, September 9, 2019, September 5, 2019, August 30, 2019, August 17, 2019, August 13, 2019, August 7, 2019, August 5, 2019, August 1, 2019, July 31, 2019, July 23, 2019 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information and surveillance fees for monitoring the ratings. The rating on Yogesh Poultry and Breeding Farm bank facilities will now be denoted as CARE B+; Stable; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above ratings. =============== M A L A Y S I A =============== IRE-TEX CORP: Falls Under PN17 Category --------------------------------------- The Sun Daily reports that Ire-Tex Corp Bhd has been classified as a Practice Note 17 (PN 17) company after its external auditors, Nexia SSY PLT expressed a disclaimer of opinion on the company's financial statements for the financial year ended June 30, 2019. According to the report, Ire-Tex failed to make the first announcement in accordance with Paragraph 4.1(a) of PN17 of the Main Market Listing Requirements (LR) and comply with Bursa Malaysia Securities Bhd’s directive vide its letter dated November 5, 2019 to make the first announcement immediately in accordance with Paragraph 4.1(a) of PN17 of the Main Market LR for triggering Paragraph 2.1(d) of PN17 of the Main Market LR. “Hence, in the exercise of the powers under Paragraph 1.03 of the Main Market LR, Ire-Tex is hereby classified as a PN17 company pursuant to PN17 of the Main Market LR with effect from November 6 and the company is required to ensure strict adherence with its obligations under PN17 of the Main Market LR,” it said in a filing with the stock exchange, Sun Daily relays. Sun Daily relates that Bursa Securities said it will continue to monitor the progress of the company in respect of its compliance with the Main Market LR. For the three-month period ended June 30, 2019, Ire-Tex posted a net profit of RM11.86 million against a net loss of RM988,000 in the same quarter a year ago, the report discloses. IRE-TEX Corp Bhd -- https://www.iretex.com.my/ -- is an investment holding company. The Company, through its subsidiaries, manufactures and sells protective packaging materials for the computer and electronics products. Ire-Tex also manufactures computer chassis. ===================== N E W Z E A L A N D ===================== EBERT CONSTRUCTION: Debt Balloons to More than NZ$123.5MM --------------------------------------------------------- Catherine Harris at Stuff.co.nz reports that the amount Ebert Construction owes unsecured creditors continues to soar, but liquidators have hinted action may be waiting for directors. Ebert went into receivership in August last year. Initial losses were put at just over NZ$24.5 million, but by April this year the debt had blown out to over NZ$119 million and it now stands at more than NZ$123.5 million, Stuff relates citing latest report from liquidators BDO. According to Stuff, liquidators Iain Shephard and Jessica Kellow said the liquidation process continued to pursue "numerous areas of investigation". They had formed a "preliminary view that there might have been a breaches of directors' duties and have put the directors on notice of a potential claim," Stuff relays. After the BNZ, which was owed just over NZ$6 million, Ebert's second secured creditor is NZ$3.5 million to former managing director Kelvin Hale and another shareholder. Stuff relates that BDO said it was waiting for a date in the High Court in Wellington next February to hear its request for a "preferential effect to a related party creditor" set aside. A notice of opposition had also been filed by the respondent. BDO recently successfully held four directors of Mainzeal Construction to account, with the High Court in Auckland ordering them to pay damages of NZ$36 million. Keith Hardie, a director of one of Ebert's many creditors, Accurate Concrete Cutting in Hamilton, said his company got off fairly lightly but some other creditors no longer existed, Stuff relays. "It wasn't a huge amount of money for us but I guess because I've been around for a while and put money away, it hasn't affected us the same. But it doesn't change the fact that you've done all the work and paid all your bills and then have nothing to show for it." As a director himself, he felt that Ebert's directors should "maybe feel a little bit of the pain" the collapse had caused. "You should know what's going on, within reason. It's not really that fair on all the people who have gone broke that some of those guys are still trundling around in flash cars and still have a wealthy lifestyle and that." According to Stuff, the latest report shows preferential creditors including staff are owed just over NZ$1.019 million. But staff remain out of pocket by NZ$757,056, because the sums they are owed exceed the Companies Act's preferential limit. All up, the company owes 338 unsecured creditors a total of NZ$123,586,750, Stuff discloses. About Ebert Construction New Zealand-based Ebert Construction Limited provided construction management services. It offered design management, value engineering, cost planning, programming, construction management, health and safety management, quality management, and project reporting services. Lara Bennett, John Fisk and Richard Longman from PwC were appointed receivers to Ebert Construction Limited in July 2018 as a result of a request made by the Ebert Board of Directors to its bank. At the time of PwC's appointment, the company was involved in 15 active projects, employed 100 staff and was forecasting turnover of NZ$171 million in the year through March 2019, according to NZ Herald. Some NZ$640,000 was owed to staff as preferential creditors, with a further NZ$1.3 million owed to employees on an unsecured basis, NZ Herald disclosed citing receivers' first report. NZ Herald said Ebert co-founder and managing director Kevin Hale is also a secured creditor, owed NZ$3.5 million, which he loaned to the business on July 24, 2018, as a short-term measure before new capital was raised from other shareholders. Ebert was placed in liquidation in October 2018. ================= S I N G A P O R E ================= DEBAO PROPERTY: Could Land on Watch-List Due to 3 Years' Losses --------------------------------------------------------------- Lynette Tan at The Business Times reports that Debao Property Development could end up on the Singapore Exchange's watch-list, after certain restatements meant it has now recorded pre-tax losses for the three most recently completed consecutive financial years. According to BT, certain restatements were made to the financial results for the financial year ended Dec. 31, 2017 by the company's auditors due to the adoption of the new Singapore Financial Reporting Standards during their audit of the company's financial statements for the following year. That resulted in Debao recording a FY2017 loss instead of profit under the previously issued FY2017 audited results, BT relays. In addition, Debao's latest six-month average daily market capitalisation as at Nov 4 is about SGD5.99 million, it said in a filing on Nov. 5. As a result, the consecutive losses and Debao's market capitalisation may land it on the Singapore Exchange's watch-list, according to the report. BT says SGX conducts quarterly reviews on the first market day of March, June, September and December of each year. Debao said it will make an immediate announcement should it be notified by the Exchange that it would be placed on the watch-list, adds BT. Debao Property Development Ltd. develops real estate in China. The Company develops integrated residential and commercial properties. ********* 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 2019. 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 ***