/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/220311.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 Friday, March 11, 2022, Vol. 25, No. 45 Headlines A U S T R A L I A BB INTERIOR: Second Creditors' Meeting Set for March 18 BUCHANAN INVESTMENT: First Creditors' Meeting Set for March 18 FIRSTMAC MORTGAGE 2022-1: S&P Assigns BB (sf) Rating to E Notes FORUM FINANCE: Papas Associate's Luxury Yacht Up for Auction MIDDLE COVE: First Creditors' Meeting Set for March 21 PEARLLARGO PTY: First Creditors' Meeting Set for March 21 WE ARE THE BARONS: First Creditors' Meeting Set for March 18 C H I N A CHINA EVERGRANDE: Secures Funding to Complete Some Projects LANZHOU CONSTRUCTION: Fitch Withdraws 'BB' IDRs SUNING.COM: Bank of Nanjing Buys 41% Stake in Consumer Finance Arm YUZHOU GROUP: Inks Formal Deal to Sell Property Mgmt Services Unit H O N G K O N G GENTING HONG KONG: Dismisses More Than 60 Employees in Singapore I N D I A A2Z INFRA: CARE Reaffirms D Rating on INR271.25cr LT Loan AMISH DAIRY: CARE Reaffirms B+ Rating on INR5.77cr LT Loan BHAGWATI AIR: CARE Moves C Debt Rating to Not Cooperating BLUE CROSS: CARE Keeps D Debt Ratings in Not Cooperating CHAMPION GROUP: CARE Lowers Rating on INR17cr LT Loan to B+ CHOMU CHANDWAJI: CARE Keeps D Debt Ratings in Not Cooperating COCHIN FROZEN: CARE Keeps D Debt Rating in Not Cooperating DIACTINIC DEVELOPERS: CARE Moves B Debt Ratings to Not Cooperating IL&FS SECURITIES: CARE Reaffirms D Rating on INR525cr ST Loan IL&FS TRANSPORTATION: CARE Keeps D Debt Ratings in Not Cooperating INFUTEC HEALTHCARE: CARE Reaffirms D Rating on INR49.09cr Loan INTERNATIONAL TRADE: CARE Keeps B Debt Rating in Not Cooperating LARS ENVIRO: CARE Lowers Rating on INR8cr LT Loan to B MAHAGANAPATHI CASHEW: CARE Lowers Rating on INR13.17cr Loan to B MAHIMA GEMS: CARE Reaffirms B+/A4 Rating on INR12cr LT/ST Loan MALLAIAH AND SONS: CARE Reaffirms B Rating on INR7.79cr Loan MANGLAM FOODS: CARE Keeps C+ Debt Rating in Not Cooperating MARUTI CONSTRUCTION: CARE Lowers Rating on INR2cr LT Loan to B NECO HEAVY: CARE Reaffirms B/A4 Rating on INR2.53cr LT/ST Loan RAJENDRA ISPAT: CARE Reaffirms B+ Rating on INR26.50cr LT Loan RAVELS APPARELS: CARE Reaffirms B Rating on INR1.77cr LT Loan SHIV SHAKTI: CARE Keeps C Debt Rating in Not Cooperating Category SREI EQUIPMENT: CARE Reaffirms D Ratings on Bank Debts SREI INFRASTRUCTURE: CARE Reaffirms D Ratings on Bank Debts TIRUMULA INDUSTRIES: CARE Moves B Debt Rating to Not Cooperating TIRUPATIBAALAJI FIBERRS: CARE Ups Rating on INR24.43cr Loan to B+ TULIP MARKETING: CARE Lowers Rating on INR10cr LT Loan to B+ VELLOCITY: CARE Reaffirms B+ Rating on INR15.50cr LT Loan J A P A N TOSHIBA CORP: Proxy Adviser Rejects Split Proposal Plan M A L A Y S I A DOLOMITE CORPORATION: Court to Hear Wind-Up Petition on May 24 HIBISCUS PETROLEUM: S&P Discontinues Preliminary 'B+' ICR JERASIA CAPITAL: Court to Heart JM Order Application on April 21 N E W Z E A L A N D ANNAPOORNA NZ: Creditors' Proofs of Debt Due April 18 DAISY 2018: Creditors' Proofs of Debt Due April 8 HALL & SONS: Creditors' Proofs of Debt Due April 19 HEWITT BUILDING: Creditors' Proofs of Debt Due April 10 TAKAHE CONSTRUCTION: Creditors' Proofs of Debt Due April 7 P H I L I P P I N E S HANJIN HEAVY: Former Hanjin Subic Bay Shipyard Sold to Cerberus S I N G A P O R E MICROSOFT SINGAPORE: Creditors' Proofs of Debt Due April 10 S R I L A N K A SRI LANKA: Inches Closer to IMF Aid Option After Rupee Plunge - - - - - ================= A U S T R A L I A ================= BB INTERIOR: Second Creditors' Meeting Set for March 18 ------------------------------------------------------- A second meeting of creditors in the proceedings of BB Interior Design Pty Ltd has been set for March 18, 2022, at 3:00 p.m. via teleconference only. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by March 17, 2022, at 4:00 p.m. Gavin Moss of Chifley Advisory was appointed as administrator of BB Interior on BB Interior Feb. 11, 2022. BUCHANAN INVESTMENT: First Creditors' Meeting Set for March 18 -------------------------------------------------------------- A first meeting of the creditors in the proceedings of Buchanan Investment Solutions Pty. Ltd. will be held on March 18, 2022, at 11:00 a.m. via Zoom meeting. Andrew Juzva of G S Andrews Advisory was appointed as administrator of Buchanan Investment on March 9, 2022. FIRSTMAC MORTGAGE 2022-1: S&P Assigns BB (sf) Rating to E Notes --------------------------------------------------------------- S&P Global Ratings assigned ratings to six of the seven classes of prime residential mortgage-backed securities (RMBS) issued by Firstmac Fiduciary Services Pty Ltd. as trustee for Firstmac Mortgage Funding Trust No.4 Series 2022-1. The ratings assigned to the prime floating-rate RMBS reflect the following factors. The credit risk of the underlying collateral portfolio and the credit support provided to each class of notes are commensurate with the ratings assigned. Credit support for the rated notes is provided by subordination, excess spread, and lenders' mortgage insurance (LMI). The credit support provided to the rated notes is sufficient to cover the assumed losses at the applicable rating stress. S&P's assessment of credit risk takes into account Firstmac Ltd. (Firstmac)'s underwriting standards and approval processes, which are consistent with industry-wide practices, and the strong servicing quality of Firstmac, and the support provided by the LMI policies on 14.5% of the loan portfolio. The rated notes can meet timely payment of interest--excluding the residual interest due on the class B, class C, class D, and class E notes--and ultimate payment of principal under the rating stresses. Key rating factors are the level of subordination provided, the LMI cover, the liquidity reserve, the principal draw function, the interest-rate swap, and the provision of an extraordinary expense reserve. S&P's analysis is on the basis that the notes are fully redeemed by their legal final maturity date, and we do not assume the notes are called at or beyond the call date. S&P said, "Our ratings also take into account the counterparty exposure to Westpac Banking Corp. as bank account provider and National Australia Bank Ltd. (NAB) as interest-rate swap provider. NAB will provide an interest-rate swap to hedge the interest-rate risk between any fixed-rate mortgage loans and the floating-rate obligations on the notes. The transaction documents for the swap and bank account include downgrade language consistent with S&P Global Ratings' counterparty criteria. "We also have factored into our ratings the legal structure of the trust, which is established as a special-purpose entity and meets our criteria for insolvency remoteness." Ratings Assigned Firstmac Mortgage Funding Trust No.4 Series 2022-1 Class A-1, A$1020.00 million: AAA (sf) Class A-2, A$108.00 million: AAA (sf) Class B, A$42.00 million: AA (sf) Class C, A$13.20 million: A (sf) Class D, A$6.60 million: BBB (sf) Class E, A$5.40 million: BB (sf) Class F, A$4.80 million: Not rated FORUM FINANCE: Papas Associate's Luxury Yacht Up for Auction ------------------------------------------------------------ Australian Financial Review reports that the luxury yacht previously owned by an associate of Forum Finance founder Bill Papas is being auctioned this week as liquidators seek to recoup hundreds of millions of dollars owed to Westpac and other lenders. The 27-metre Mangusta yacht is docked in Florida and was not initially disclosed by Vincenzo Tesoriero in court submissions, until its existence was reported by The Australian Financial Review. Mr. Tesoriero, who sought to prevent the sale, is alleged by Westpac to be involved in a conspiracy along with Mr. Papas, AFR says. Sydney-based Forum Group was a managed services provider offering integrated B2B solutions, including IT, print, environment, fleet and security. Forum Group and associated company Forum Finance are just two of the many businesses owned by Basile Papadimitriou - a.k.a Bill Papas - who is reported to have fled to Greece following Westpac's investigation and subsequent civil proceedings, according to ARN. Jason Preston and Jason Ireland of McGrath Nicol were appointed as provisional liquidators on July 15, 2021, by the Federal Court. MIDDLE COVE: First Creditors' Meeting Set for March 21 ------------------------------------------------------ A first meeting of the creditors in the proceedings of Middle Cove Enterprises Pty Ltd will be held on March 21, 2022, at 1:00 p.m. via Teleconference/Webinar only. Philip Campbell Wilson and Said Jahani of Grant Thornton Australia Limited were appointed as administrators of Middle Cove on March 21, 2022. PEARLLARGO PTY: First Creditors' Meeting Set for March 21 --------------------------------------------------------- A first meeting of the creditors in the proceedings of Pearllargo Pty Ltd will be held on March 21, 2022, at 10:00 a.m. via virtual meeting only. Malcolm Field of SV Partners was appointed as administrator of Pearllargo Pty on March 9, 2022. WE ARE THE BARONS: First Creditors' Meeting Set for March 18 ------------------------------------------------------------ A first meeting of the creditors in the proceedings of We Are The Barons Pty Ltd, trading as The Park Darlinghurst; Staunton St. Hospitality Group and The Green Parque Hotel, will be held on March 18, 2022, at 11:00 a.m. via virtual meeting only. Philip Raymond Hosking and Stephen Wesley Hathway of Helm Advisory were appointed as administrators of We Are The Barons on March 8, 2022. ========= C H I N A ========= CHINA EVERGRANDE: Secures Funding to Complete Some Projects ----------------------------------------------------------- Caixin Global reports that with local government support, cash-strapped China Evergrande Group has secured money to finish a number of housing developments from banks, state-owned enterprises, and local partners weighing their best options, sources close to the company told Caixin. In Northeast China's Liaoning province, the developer has reached an agreement with the local government and contract builders, with the contractors promising to finish the projects with their own funds, Caixin relates. Evergrande has agreed to use some of the projects' properties and proceeds from housing sales as collateral to repay the contractors under government supervision, the sources said, Caixin relays. China Evergrande Group is an integrated residential property developer. The Company, through its subsidiaries, operates in property development, investment, management, finance, internet, health, culture, and tourism markets. Evergrande had CNY1.97 trillion (US$311 billion) of liabilities at the end of June 2021. Once China's biggest developer by sales, Evergrande fell into distress as cash dried up and the group overstretched itself on borrowings and ventures into car manufacturing. Evergrande hired outside financial advisers Houlihan Lokey and Admiralty Harbour Capital in September 2021 to engage with creditors soon after it ran into a liquidity squeeze. It has since worked with more advisers in the past two months by turning to China International Capital Corp, BOCI Asia and Zhong Lun Law Firm on its debt workout plan. As reported in the Troubled Company Reporter-Asia Pacific in December 2021, S&P Global Ratings lowered the issuer credit ratings on China Evergrande Group and Tianji Holding Ltd. to 'SD' from 'CC'. S&P also lowered the issuer rating on Tianji's bonds due 2022 and 2023 to 'D' from 'C'. S&P subsequently withdrew all its ratings on Evergrande, its subsidiary Hengda Real Estate Group Co. Ltd., and Tianji, at the group's request. The TCR-AP also reported that Fitch Ratings has downgraded to 'RD' (Restricted Default), from 'C', the Long-Term Foreign-Currency Issuer Default Ratings (IDR) of China Evergrande Group and its subsidiaries, Hengda Real Estate Group Co., Ltd and Tianji Holding Limited. Fitch has affirmed the senior unsecured ratings of Evergrande and Tianji at 'C', with a Recovery Rating of 'RR6', as well as the Tianji-guaranteed senior unsecured notes issued by Scenery Journey Limited at 'C', with a Recovery Rating of 'RR6'. The downgrades reflect the non-payment of coupons due Nov. 6, 2021 for Tianji's USD645 million 13% bonds and USD590 million 13.75% bonds after the grace period lapsed on 6 December. The non-payment is consistent with an 'RD' rating, signifying the uncured expiry of any applicable grace period, cure period or default forbearance period following a payment default on a material financial obligation. LANZHOU CONSTRUCTION: Fitch Withdraws 'BB' IDRs ----------------------------------------------- Fitch Ratings has withdrawn China-based Lanzhou Construction Investment (Holding) Group Co., Ltd.'s (LZJT) Long-Term Foreign- and Local-Currency Issuer Default Ratings of 'BB' with a Negative Outlook. The rating on the USD300 million 4.15% senior unsecured notes due 15 November 2022, issued by City Development Company of Lan Zhou and guaranteed by LZJT, has also been withdrawn. Fitch is withdrawing the ratings as LZJT has chosen to stop participating in the rating process. Therefore, Fitch will no longer have sufficient information from the issuer to maintain the ratings. Accordingly, Fitch will no longer provide ratings or analytical coverage for LZJT. KEY RATING DRIVERS No longer relevant, as the ratings have been withdrawn. RATING SENSITIVITIES No longer relevant, as the ratings have been withdrawn. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Sovereigns, Public Finance and Infrastructure issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of three notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. ISSUER PROFILE The Lanzhou municipal government in north-west China established LZJT in 2016 as a policy government-related entity. It has injected assets and equity into LZJT, the major municipal platform for urban development that also provides essential public services and operates key state assets. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Following the withdrawal of ratings for LZJT, Fitch will no longer be providing the associated ESG Relevance Scores. SUNING.COM: Bank of Nanjing Buys 41% Stake in Consumer Finance Arm ------------------------------------------------------------------ Yicai Global reports that Bank of Nanjing is preparing to buy an additional 41 percent equity in Suning.com's consumer finance arm to become the majority shareholder as consumer credit increasingly represents an important area of growth for Chinese lenders. Bank of Nanjing will fork out CNY388 million (USD61 million) to hike its stake in Suning Consumer Finance to 56% from 15%, the Nanjing, eastern Jiangsu province-based bank said on March 7, Yicai Global relates. The deal, signed on March 4 and which is still subject to regulatory approval, will give the lender access to the company's coveted consumer finance license. According to the report, Bank of Nanjing will pay Suning CNY341 million for 36% equity, reducing the Nanjing-based retailer's holdings to 10%, and CNY47.3 million to another shareholder, Jiangsu Yanghe Brewery JSC, to buy out its 5 percent stake. Yicai Global relates that the bank's majority shareholder French banking group BNP Paribas will also invest CNY28.4 million (USD4.5 million) to increase the stake of its unit BNP Paribas Personal Finance to 18% from 15%, the Chinese lender said. Bank of Nanjing and BNP Paribas were two of the original five backers when Suning Consumer Finance was set up in 2015. Caught up in a liquidity crisis, Suning brought in strategic investors including Jiangsu province state-owned assets and industrial capital twice last year, raising more than CNY12 billion (USD1.9 billion), the report recalls. Founder Zhang Jindong stepped down as chairman last July. Suning.Com Co., Ltd., operates consumer electronic products and appliances sales stores. The Company sells telecommunication equipment, telecommunication components, household appliances, digital equipment, refrigerators, washing machines, and other products. Suning.Com also provides equipment installation and repairing services. YUZHOU GROUP: Inks Formal Deal to Sell Property Mgmt Services Unit ------------------------------------------------------------------ South China Morning Post reports that Yuzhou Group Holdings said on March 8 that it had entered a formal agreement with a subsidiary of China Resources Mixc, which is controlled by state-owned China Resources Land, to sell its property management services company for CNY1.06 billion (US$168 million). The announcement came after Yuzhou said the same day that its bond due in 2023 was suspended from March 9, as it had missed a coupon payment for the notes, the Post relays. The Post adds that Yuzhou also said trading in its shares was suspended until further notice. "The company is reviewing possible options to implement a holistic solution to the current situation, with a view to secure the long-term future of the company for the benefit of all stakeholders," it said. According to the report, the Shenzhen-based company has missed payments for other notes, and sought exchange offers for untendered notes. It warned at the end of January that coupon payments totalling US$110 million on five other notes due within the next seven weeks were likely to be delayed as well. About Yuzhou Group Yuzhou Group Holdings Company Limited is a property developer that focuses on residential housing in the Yangtze River Delta and the West Strait Economic Zone. Established in Xiamen in the mid-1990s, Yuzhou is one of the city's largest developers. The company moved its headquarters to Shanghai in 2016. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 11, 2022, Fitch Ratings has downgraded China-based property developer Yuzhou Group Holdings Company Limited's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'RD' (Restricted Default) from 'C' on the completion of an exchange offer. The rating actions are in accordance with Fitch's rating definitions. The senior unsecured rating of Yuzhou has been affirmed at 'C', with a Recovery Rating of 'RR4'. ================= H O N G K O N G ================= GENTING HONG KONG: Dismisses More Than 60 Employees in Singapore ---------------------------------------------------------------- Marketing Interactive reports that Genting Hong Kong has dismissed at least 60 employees in Singapore, with many of them being Singaporeans and permanent residents. In January, Genting Hong Kong filed to close the business and a few weeks later, its subsidiary Dream Cruises also filed to wind up the business. The layoffs at Genting Hong Kong reportedly began in January and were done in phases, Marketing Interactive relates citing The Straits Times. The latest round of contract termination was completed this week and impacted employees received an email informing them that their employment had been terminated. They were also asked to return company property at the office, ST said. Earlier this year, Genting Hong Kong filed to close down the business as it had "exhausted all reasonable efforts" to negotiate with relevant counterparties under its financing arrangements. The company, however, failed to reach an agreement with various creditors and other stakeholders. Genting Hong Kong also initially stated that Dream Cruises Holdings will continue operating. While most employees were not owed wages, ST reported that Genting Hong Kong still owed them pro-rated salary and compensation for unused annual leave days, Marketing Interactive relays. No retrenchment benefits were offered to employees. Genting Hong Kong and Dream Cruises are not unionised companies, ST said. According to the Ministry of Manpower, non-unionised employers should provide a lump sum retrenchment benefit. Instead of linking retrenchment benefits to employees' years of service, a lump sum of between one and three months of salary could be provided, taking into consideration the Jobs Support Scheme pay-outs that employers have received and their financial position, Marketing Interactive discloses. Aside from the retrenchment, Malaysian billionaire, Lim Kok Thay, also resigned from his position as chairman and CEO for Genting Hong Kong following the announcement in January, Marketing Interactive relates. Deputy CEO and president, Au Fook Yew has also resigned from his post. Meanwhile, Dream Cruises officially ceased the operation of its World Dream vessel on March 2. About Genting Hong Kong Genting Hong Kong Limited is a Hong Kong-based investment holding company principally engaged in cruise businesses. The Company operates through two segments. Cruise and Cruise-related Activities segment is engaged in the sales of passenger tickets, the sales of foods and beverages onboard, shore excursion, as well as the provision of onboard entertainment and other onboard services. Non-cruise Activities segment is engaged in onshore hotel businesses, travel agency, aviation businesses, entertainment businesses and shipyard businesses, among others. The Company operates businesses in Asia Pacific, North America and Europe, among others. As reported in the Troubled Company Reporter-Asia Pacific on Jan. 20, 2022, Genting Hong Kong has filed a winding-up petition in Bermuda, after the bankruptcy of its shipyard in Germany triggered US$2.78 billion of debt and forced Asia's largest operator of sea cruises to be liquidated. The owner of Dream Cruise Holding appointed Alvarez & Marsal's Edward Simon Middleton and Tiffany Wong Wing-sze as provisional liquidators, South China Morning Post disclosed citing a filing on Jan. 19 to the Hong Kong stock exchange. Dream Cruises Holding Ltd., an indirect non-wholly owned unit of Genting Hong Kong that has also filed a winding up petition, will continue to operate its fleet in the region, the company said. ========= I N D I A ========= A2Z INFRA: CARE Reaffirms D Rating on INR271.25cr LT Loan --------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of A2Z Infra Engineering Limited, as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank Facilities 271.25 CARE D Reaffirmed Short Term Bank Facilities 528.77 CARE D Reaffirmed Detailed Rationale and Key Rating Drivers The rating assigned to the bank facilities of A2Z Infra Engineering Limited continues to factor in delays in debt servicing by the company. Key rating sensitivities Positive: Factors that could lead to positive rating action/upgrade * Timely track record of debt servicing by the company for continuous 3 months * DSCR improves to >2x on a sustained basis Key Rating Weakness * Delay in Debt servicing obligation: The liquidity position of the company continues to remain weak on account of weak operational and financial performance leading to delay in debt servicing. Liquidity: Poor The liquidity of the company is poor, leading to delays in debt servicing. Incorporated in January 2002 as A2Z Maintenance Services Private Ltd, the company was renamed 'A2Z Maintenance & Engineering Services Private Ltd' in June 2005. Subsequently, the company became a public limited company in March 2010. A2Z came up with an IPO in October 2010 and raised INR776.2 crore. The company got its present name in December 2014 and is primarily engaged in providing Engineering, Procurement and Construction (EPC) services in power transmission and distribution sector. AMISH DAIRY: CARE Reaffirms B+ Rating on INR5.77cr LT Loan ---------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of Amish Dairy & Foods Private Limited (ADFPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank Facilities 5.77 CARE B+; Stable Reaffirmed Detailed Rationale & Key Rating Drivers The rating assigned to the bank facilities of ADFPL continues to remain constrained on account of small scale of operations, low profitability margins, leveraged capital structure with moderate debt coverage and stretched liquidity. The rating is further constrained on account of risk due to product concentration, exposure to intense competition and susceptibility to changes in regulations and epidemics affecting the dairy industry. The rating, however, continues to draw comfort from experienced and qualified promoters and comfortable operating cycle. Rating Sensitivities Positive Factors * Increase in the total operating income (TOI) of the company above INR50.00 crore on sustained basis. * Improvement in capital structure as marked by overall gearing of below 1.00x on a sustained basis. Negative Factors * Elongation in operating cycle to more than 50 days on a sustained basis. * Deterioration in debt coverage indicators marked by interest coverage ratio below 1.00x and total debt to GCA of above 8.00x on a sustained basis. Detailed description of the key rating drivers Key Rating Weaknesses * Small scale of operations with low profitability margins: ADFPL commenced commercial operations from FY18 onwards thus making FY21 only its fourth full year of operations. The company's scale of operations continued to remain small marked by a TOI of INR28.58 crore given its limited presence in various districts of Bihar and Uttar Pradesh. However, with covid restrictions easing the company has been able to expand its customer reach. This has resulted in total sales worth INR44.12 crore in 10MFY22(Provisional). ADFPL is not able to pass the price rise in entirety to its customers due to little control over its cost structure as it follows the end product prices set by the major industry players such as Amul and Mother Dairy which cater to the same target market. Thus, profitability margins of the company continued to remain constrained as marked by low PBILDT and PAT margins. The PBILDT margin marginally declined and stood at 6.43% in FY21 compared to 8.27% in FY20 on account of increase in cost of material consumed specifically rise in costs of raw milk, packaging as well as transportation cost. Moreover, with proportionately high interest and depreciation cost incurred during the year, PAT margin also declined marginally and stood at 0.07% in FY21 as against 0.16% in FY19. Consequently, gross cash accruals also remained low at INR1.06 crore in FY21. * Leveraged capital structure and moderate debt coverage indicators: The company's capital structure continues to remain leveraged marked by overall gearing of 4.51x as on March 31, 2021 (3.05x in FY20). An uptick in overall gearing was on account of covid loans (GECL) taken up by the company during the review period. Further, the company's net worth also declined on account of decline in unsecured loans which are considered as quasi equity. Unsecured loans considered as quasi capital stood at INR0.35 crore as on March 31, 2021 as compared to INR2.36 crore as on March 31, 2020. Further, as a result of low profitability, ADFPL's debt coverage indicators also remained moderate marked by TDGCA ratio of 7.37 crore and an interest coverage of 2.63x in FY21 against TDGCA of 5.77x and interest coverage of 2.68x in FY20. * Product concentration risk: ADFPL has set up a milk processing unit with installed capacity of 1,00,000 litres of milk per day. ADFPL procures raw/unprocessed milk and converts this milk into pasteurized form. Although, the company's product line includes various milkbased sweets like rasgulla and gulab jamun, which reduces the product concentration risk to some extent. As of now, the company does not plan to venture into milk products like Sweet and Condensed Milk (SCM), Skimmed Milk Powder (SMP), etc. which are high margin products vis-a-vis pasteurized milk. * Competition from the organized and unorganized sector and environmental risk: The company faces competition in the dairy segment from other established brands in the organized market. The competition gets fiercer with presence of unorganized players leading to pricing pressures. Other major dairy companies are also entering into the manufacturing of value-added milk products on account of increasing demand in the domestic market. Further, ADFPL is exposed to environmental risks (such as outbreak of epidemics/ bovine diseases) since its entire milk collection is from farmers and villages located near the processing plant. Key Rating Strengths * Experienced & resourceful partners: ADFPL is managed and promoted by Dr. Pradeep Tiwari and family who possess moderate experience in the dairy industry. Comfortable operating cycle Operating cycle of the company stood comfortable at 18 days for FY21. The operations of ADFPL are less working capital intensive in nature on account of the product being highly perishable in nature and having a limited shelf life. The company procures the raw milk on a daily basis from the dairy farmers and processes it regularly. Generally, these dairy farmers operate on cash basis, however, when the purchases are made in bulk by the customers, the credit period gets stretched to 20-25 days. Similarly, the company enjoys credit period of 10 to 15 days from its suppliers, however when it procures the raw milk in bulk quantity, it gets further relaxation in making payment to its suppliers. Liquidity: Stretched The liquidity position of the company remained stretched as marked by tightly matched cash accruals vis-s-vis repayment obligations of INR1.39 crore for FY22. Further, Overdraft limit utilization remained close to 100% during past one year ended January 2022. Furthermore, the company has low unencumbered cash & bank balances of INR0.52 crore as on March 31, 2021. In addition to the same, cash flow from operating activity also remained low at INR0.86 crore in FY21. Amish Dairy & Foods Private Limited (ADFPL) was incorporated as a private limited company in March 2015. However, the operations started in April 2017. The company is promoted by Mr. Pradeep Tiwari and is engaged in processing of milk and milk products viz. sweet curd, lassi, buttermilk, ghee, paneer, sweet items like peda, etc. They procure the milk from the local dairy farmers on a daily basis and process it into pasteurized milk at its processing plant located at Siwan, Bihar, with current installed capacity of 1,00,000 litres of milk per day as on March 31, 2021 and post the processing and packaging, it is dispatched to the market in Bihar and Uttar Pradesh through distributors, under the brand name 'Gopad'. The milk is available in five variants viz. full cream milk, toned milk, standard milk, tea milk and cow milk. ADFPL has certifications and approvals namely Food Safety License, Pollution Board Approvals and Broiler Inspection in place. BHAGWATI AIR: CARE Moves C Debt Rating to Not Cooperating --------------------------------------------------------- CARE Ratings has migrated the rating on bank facilities of Bhagwati Air Express Private Limited (BAEPL) to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 15.00 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating moved to ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE has been seeking information from BAEPL to monitor the rating(s) vide e-mail communications/letters dated December 01, 2021, December 7, 2021 and February 25, 2022 etc. among others and numerous phone calls. However, despite repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The rating on BAEPL's bank facilities will now be denoted as CARE C; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Detailed description of the key rating drivers At the time of last rating on March 9, 2021 the following were the rating weaknesses and strengths: Key Rating Weaknesses * Delay in servicing of debt obligations (Not rated by CARE): The company has reported instance of delay in servicing of its debt obligations on commercial vehicle loan (not rated by CARE) owing to delay in receipt of receivables from the customers. There was a delay in generating E-way bill during January 2021 which subsequently resulted in delay in receipt of payment from the customers. This led to timing mismatch and the due debt obligation of INR0.08 crore on February 22, 2021 was serviced on Feb 27, 2021 with a delay of five days. However, there was no overutilization in the cash credit facility and the average utilization remains more than 90% over the past 12 months February 2021. * Low profitability margins: Profitability margins of BAEPL remained low due to competitive and fragmented nature of the industry with company offering better rates to its clients for acquiring business. The PBILDT and PAT margins of the company remained low at 3.50% and -0.22% respectively during FY20 (A) as against 3.26% and -0.37% respectively during FY19(A). * Leveraged capital structure: The capital structure of the company stood leveraged with overall gearing of 2.33x in FY20(A) which increased moderately from 2.28x during FY19(A). The high overall gearing is largely due to increase in vehicle loans for buying fleet of trucks which increased from 81 trucks in FY19 to 108 trucks in FY20. * Working capital intensive nature of operations: As the company is engaged in deliveries across the country, the delivery time add to the receivable cycle of the company. The company gets payment in 30 days after presenting bill to its clients. The company has to incur some upfront operational expenses for security check and advance payments which along with time lag in collection of receivables results in higher working capital requirements for BAEPL. The company has to rely more on cash credit for financing its working capital needs and its cash credit limits remain utilized more than 90% over the past 12 months February 2021. * Highly fragmented and competitive industry: The logistics industry is highly fragmented with large number of operators owing to low entry barriers. Presence of various players results in intense competition within the industry. High fragmentation and intense competition lead to unhealthy price wars and discounts resulting in pressure on margins and depressed freight rate. Key Rating Strengths * Experienced promoters: BAEPL is currently being managed by Mr. Dinesh Kumar Digga and Mr. Roopchand Baheti both promoters have vast experience of more than a decade in the logistics solutions through their association with BAEPL. They collectively look after the operations of the company. BAEPL has been operational for more than a decade, which has enabled company to establish relationship with its clients. * Growing scale of operations: Total operating income of BAEPL grew on y-o-y basis from INR109.57 crore during FY19 (A) to INR194.99 crore during FY20 (A) owing to higher demand from domestic logistics sector. Several government initiatives like Make in India, Skill India, Digital India and Start up India etc. had resulted in big boost to E-Commerce and manufacturing sector in India, which derived the demand in logistics sector in past few years. Diversified client base across various industries and presence in both surface and air freight forwarding BAEPL provides domestic freight services through both airway (Air Freight Forwarding services) and surface channel to its broad and diversified customer base in the verticals of E-commerce, pharmaceuticals and healthcare industry, automobile, Industrial companies, courier companies etc. Liquidity: Stretched The liquidity of BAEPL is stretched with tightly matched cash accruals vis-à-vis repayment obligations. The cash and balance available with company stood at INR0.45 crore as on March 8, 2021. The company also has FDR with bank which stood at INR3.45 crore as on March 8, 2021 of which INR3.00 crore is lien marked with bank. Company has to rely on cash credit limit for its working capital requirements which remains utilized for more than 90% over the past 12 months February 2021. BAEPL was incorporated in 2010 by Mr. Dinesh Kumar Digga and Mr. Roopchand Baheti. The company provides domestic freight services through airway channel (air freight forwarding services) and surface transportation. The company has tie up with domestic air carrier for transportation of goods through air and for surface transportation the company has its own fleet of more than 108 trucks with capacity ranging from 9 tons to 18 tons. BLUE CROSS: CARE Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Blue Cross Commodities Private Limited (BCCPL) continues to remain in the 'Issuer Not Cooperating ' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 32.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 0.75 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated January 11, 2021, placed the rating(s) of BCCPL under the 'issuer non-cooperating' category as BCCPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. BCCPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated November 27, 2021, December 7, 2021, December 17, 2021. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Incorporated in November 2009, Blue Cross Commodities Private Limited (BCCPL), promoted by Mr. Prakash Bihani and his son Mr. Siddharth Bihani (MD), is engaged in the manufacturing & trading of bitumen & bitumen related products like cold bitumen, emulsion, etc. CHAMPION GROUP: CARE Lowers Rating on INR17cr LT Loan to B+ ----------------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of Champion Group of Company, as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 17.00 CARE B+; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category and Revised from CARE BB-; Stable Detailed Rationale & Key Rating Drivers CARE Ratings Ltd. has been seeking information from Champion Group of Company to monitor the rating(s) vide e-mail communications/letters dated September 10, 2021, February 11, 2022 among others and numerous phone calls. However, despite repeated requests, the firm has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Further, Champion Group of Company has not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. The rating on Champion Group of Company'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 rating(s). The rating has been revised on account of non-availability of the information from the public domain, uncertainty regarding the impact of COVID 19 on the operation of the firm and non-cooperation from the firm. The rating takes into account the proprietorship nature of constitution, susceptibility to price volatility in traded goods and regulatory changes and high competition amidst fragmented nature of industry. The rating factors in the experienced proprietor with long operational track record of the firm. Detailed description of the key rating drivers At the time of last rating on January 28, 2021 the following were the rating strengths and weaknesses: Key Rating Weaknesses * Small scale of operations with low profitability margins: The scale of operation of the firm remained relatively small marked by total operating income of INR80.86 crore in FY20 vis-à-vis INR95.71crore in FY19. It has booked a turnover of INR31.35 crore during 9MFY21. The small size restricts the financial flexibility of the firm in times of stress and deprives it from benefits of economies of scale. The profitability margins of the firm remained low marked by PBILDT margin of 5.16% and PAT margin of 2.40% during FY20. * Proprietorship nature of constitution: CGC, being a proprietorship firm, is exposed to inherent risk of withdrawal of capital by the proprietor, restricted access to funding and risk of dissolution on account of poor succession planning. Furthermore, proprietorship firms have restricted access to external borrowing as credit worthiness of proprietor would be the key factors affecting credit decision for the lenders. * Susceptibility to price volatility in traded goods and regulatory changes: The firm participates in government tender for mining and lifting of sand and stone chip and accordingly it is exposed to change in government regulation with respect to mining activities from time to time. Further, the firm remained exposed to availability and price volatility in agro commodities trading segment. * Leveraged capital structure with moderate debt coverage indicators: The overall gearing ratio has deteriorated and remained leveraged at 2.68x as on March 31, 2020. The debt coverage indicators remained moderate marked by interest coverage of 2.15x and total debt to GCA of 16.41x in FY20. * High competition amidst fragmented nature of industry: Trading industry is a very fragmented and competitive space with presence of huge small players operating in the same region due to low capital requirement. In such a competitive scenario smaller entities like CGC in general are more vulnerable on account of its limited pricing flexibility. Key Rating Strengths * Experienced proprietor with long track record of operation: The proprietor Mr. Amit Kumar Singh has more than a decade of experience in mining and trading activities and he looks after the overall management of the firm. Furthermore, CGC ois into same line of business since 2000 and accordingly has a long track record of operations. Champion Group of Company (CGC) was established as a proprietorship firm in the year 2000 by Mr. Amit Kumar Singh. Since its inception, the firm has been engaged in mining, lifting and trading of sand and stone chip. Later on the firm has also started trading of agro commodities like rice, paddy, jute bags, and other products depending on their economic viability. The firm participates in government tenders for procurement of sand and stone chip. CHOMU CHANDWAJI: CARE Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Chomu Chandwaji Tollways Private Limited(CCTPL) continues to remain in the 'Issuer Not Cooperating ' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 20.66 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 2.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE Ratings Ltd has been seeking information from CCTPL to monitor the ratings vide e-mail communications/letters dated February 2, 2022, February 15, 2022, February 23, 2022, February 24, 2022, February 25, 2022 and numerous phone calls. However, despite repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the ratings on the basis of the best available information which however, in CARE Ratings Ltd's opinion is not sufficient to arrive at a fair rating. The rating on CCTPL's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING/CARE D; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings of Chomu Chandwaji Tollways Private Limited (CCTPL) takes into account various instances of delay in debt servicing of interest and instalment of term loan furnished from annual report available from public domain. Detailed description of the key rating drivers At the time of last rating on March 10, 2021 the following were the rating strengths and weaknesses (updated from information available from registrar of companies): Key Rating Weaknesses * Delay in debt servicing: Due to mismatch in cash flow, there are various instances of delay in repayment of installments and payment of interest during the year and as on balance sheet of term loan furnished from annual report available from public domain. Jaipur (Rajasthan) based CCTPL was incorporated in 2016 as a Special Purpose Vehicle (SPV) created by two groups - N.G. Projects Limited and M/s Murarilal Agarwal with a purpose to engage in road construction. CCTPL was awarded a contract by Public Work Department (PWD), Rajasthan for development of a State Highway (SH No.08 B) at Chomu-Chandwaji section having total length of 15.45 kilo meters (KMs) on Design-Built-Finance-Operate and Transfer (DBFOT) basis. It entered into contract of 18 years starting from March 2017 (One year construction year and 17 year of operations) with PWD. It completed its project and started commercial operations from February 25, 2018. COCHIN FROZEN: CARE Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------- CARE Ratings has migrated the rating on bank facilities of Cochin Frozen Food Exports Private Limited (CFFEPL) to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Short Term Bank 46.94 CARE D; ISSUER NOT COOPERATING Facilities Rating moved to ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE has been seeking information from CFFEPL to monitor the rating vide e-mail communications dated January 25, 2022, January 28, 2022 & February 3, 2022 and numerous phone calls. However, despite repeated requests, the company has not provided the requisite information for monitoring the rating. In the absence of minimum information required for the purpose of rating, CARE is unable to express opinion on the rating. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of best available information which however, in CARE's opinion is not sufficient to arrive at fair rating. The rating on CFFEPL facilities will now be denoted as 'CARE D ISSUER NOT COOPERATING.' Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The rating takes into account the non-availability of requisite information due to non- cooperation by CFFEPL with CARE's efforts to undertake a review of the outstanding ratings as CARE views information availability risk as key factor in its assessment of credit risk profile. The rating assigned to the bank facilities of CFFEPL factors ongoing delays in packing credit facilities. Detailed description of the key rating drivers Key Rating Weaknesses * Ongoing delays in servicing debt obligations: CARE as part of its due diligence exercise interacts with various stakeholders of the company including lender to the company and as part of this exercise has ascertained that there are ongoing delays in packing credit facilities sanctioned by the bank, and account has been classified as Non-Performing Asset. Cochin Frozen Food Exports Private Limited (CFFEPL) was established in the year 1989 and is engaged in processing of the seafood, mainly prawn and fish varieties with its corporate base in Aroor, 15 kms to the south of Cochin. The promoter, Mr. K. Prabhakaran, who is the founder chairman of the group is in the field of seafood exporting from the year 1974. The company normally exports its entire produce to the major markets of USA, Europe, Japan, China and the Middle East. DIACTINIC DEVELOPERS: CARE Moves B Debt Ratings to Not Cooperating ------------------------------------------------------------------ CARE Ratings has migrated the rating on bank facilities of Diactinic Developers Private Limited (DDPL) to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 9.57 CARE B; Stable; ISSUER NOT Facilities COOPERATING; Rating moved to ISSUER NOT COOPERATING Category Short Term Bank 0.68 CARE A4; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE has been seeking information from DDPL to monitor the rating(s) vide e-mail communications/letters dated February 10 2022, February 24 2022 among others and numerous phone calls. However, despite repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Further, Diactinic Developers Private Limited has not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. The rating on Diactinic Developers Private Limited's bank facilities will now be denoted as CARE B; Stable; Issuer Not Cooperating/CARE A4; Issuer Not Cooperating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings take into account lack of information and uncertainty around the credit risk profile of the company. Detailed description of the key rating drivers At the time of last rating on June 1 2021, the following were the rating strengths and weaknesses: Key Rating Weaknesses * Small scale and short track record of operation with low profitability margins: DDPL has a relatively small scale of operation and a very short track record of operation. Moreover, the total operating income of the company witnessed gradual increase over the last three financial years FY18 to FY20 mainly on account of higher execution of orders in hand. However, the same remained small at INR21.14 crore in FY20. The relatively small size restricts the financial flexibility of the company in terms of stress and deprives it from benefits of economies of scale. Due to its relatively small scale of operations, the absolute profit levels of the company also remained low. PBILDT level and PAT levels have also remained small at INR1.15 crore and INR0.53 crore, respectively in FY20. The tangible net worth of the company was at INR0.17 crore as on March 31, 2020.The capital employed of the company remained low at INR11.52 crore as on March 31, 2020. However, the profitability margins remained low marked by PBILDT and PAT margins of 5.42% and 2.53% respectively, in FY20. Furthermore, the company has booked revenue of INR5.89 crore during 11MFY21. There was restriction on the construction activities since the lockdown was imposed on March 25, 2020 so the firm has not been able to operate. However, the company has resumed some construction works after October, 2020. The construction industry; being a labour intensive; the firm has resumed operations with limited manpower due to low labour availability owing to COVID issue. However, the firm is expecting to operate smoothly from December, 2020 and the company has booked revenue of INR5.89 crore during 11MFY21. * Susceptibility of operating margin due to volatility in input material prices and labor charges: The basic input materials for execution of construction projects and works contracts are structure steel, stone chips, bitumen, cement etc. The prices of which are highly volatile and the contracts executed by the entity does have price escalation clause in most of the contract. Therefore, the company is exposed to volatility in the prices of input materials. The labour prices are not volatile. Majority of laborers are of unskilled category and are available in abundant. * Risk associated with participating in tenders and intense competition in the industry: The company has to bid for the contracts based on tenders opened by the Government of West Bengal. Upon successful technical evaluation of various bidders, the lowest bid is awarded the contract. The company receives projects which majorly are of a short to medium tenure (i.e. to be completed within maximum period of one to two years). Furthermore, orders are generally tender driven floated by government units indicating a risk of non-receipt of contract in a competitive industry. The outlook of construction sector appears challenging in view of slow execution of the existing order book in view of hindrances related to land acquisition, obtaining requisite clearances, labour shortage and liquidity issues with the clients, etc. Additionally, the sector is plagued with elongated working capital cycle leading to increase in debt level of construction entity. * Leveraged capital structure and weak debt coverage indicators: The capital structure of the company remained leveraged marked by long term debt-equity ratio of 14.21x and overall gearing ratio of 66.29x, as of March 31, 2020 on account of low accumulation of profits into reserve, availment of term loan and vehicle loan and higher working capital utilization as on account closing date. Further, the debt coverage indicators remained weak marked by total debt to GCA of 15.84x in FY20 on account of high total debt position as well as lower cash accruals of the company. Furthermore, the interest coverage ratio deteriorated in FY20 on account of rise in interest cost and remained moderate at 2.64x. Despite infusion of equity capital of INR1.0 crore, the overall gearing will remain high. * Working capital intensive nature of operation: The operations of the company remained the working capital intensive as the company executes orders mainly for West Bengal government departments. Due to its working capital-intensive nature of operations, the operating cycle remained moderate at 82 days during FY20 due to its amount of security deposits and delay in payment from the West Bengal Govt. Moreover, the average utilization of working capital was almost fully utilised during the last 12 months ended on Feb.2021. * Experienced management: Diactinic Developers Private Limited (DDPL) was incorporated in March 2017, at Kasba in West Bengal. The entity is engaged in civil construction business in the segment like roads, bridge and building. DDPL secures work contracts through tender and executes orders mainly for various departments of West Bengal Government. The major clients of the company include reputed names like Public Works Department (PWD) West Bengal, Mackintosh Burn Limited (MBL) and contracts for South 24 Parganas (West Bengal). Mr. Debasis Ghosh has more than three decades of experience in civil construction industry. They look after the day-to-day operations of the entity along with other technical and non-technical professionals who are having long experience in this industry. * Reputed clientele resulting in minimal default risk with customers: DDPL executes orders for Public Works Department (PWD) government of West Bengal, Mackintosh Burn Limited (MBL) and for South 24 Parganas (West Bengal) which exposes it to client concentration risk. However, the promoter has long-standing relationship with these clients for around two decades which offsets the risk to some extent. Further as the clients of the entity are government units thus the default risk is minimal. * Satisfactory order book position representing revenue visibility: The firm has moderate order book position of INR67.99 crore (which is 3.22x of FY20 Turnover) as on March 15, 2021 which is expected to be complemented by March 2022. Liquidity: Not Applicable Diactinic Developers Private Limited (DDPL) was incorporated in March 14, 2017, with its office located at Kasba in West Bengal. It has started operation since April, 2019 and the entity has been engaged in civil construction business in the segment like roads, bridge and building. DDPL secures work contracts through tender and executes orders mainly for various departments of West Bengal Government. The major clients of the company include reputed names like Public Works Department (PWD) West Bengal, Mackintosh Burn Limited (MBL) and contracts for South 24 Parganas (West Bengal). Mr. Debasis Ghosh has more than three decades of experience in civil construction industry. They look after the day-to-day operations of the entity along with other technical and non-technical professionals who are having long experience in this industry. IL&FS SECURITIES: CARE Reaffirms D Rating on INR525cr ST Loan ------------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of IL&FS Securities Services Limited (ISSL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Short Term Bank Facilities 525.00 CARE D Reaffirmed Detailed Rationale & Key Rating Drivers The reaffirmation of rating of bank facilities of ISSL considers continued instances of irregularities in servicing of debt by the company. In August 2019, CARE had revised the ratings of ISSL to 'CARE D (Single D)' due to the company defaulting on its payment obligations towards its trading members following inability to find resolution related to certain disputed trades. ISSL's inability to make payments led to disabling of the trading terminal by the stock exchange and invocation of guarantee by the exchange clearing house. The non-fund-based facilities have now got converted into fund based and continue to be out of order. The operations of the company are solely dependent on the outcome of the ongoing litigation going on in the court of law and resolution plan of the company. Rating Sensitivities: Positive Factors- Timely servicing of debt for a period of three consecutive months Negative Factors- Not Applicable Liquidity: Poor The liquidity profile of the company is severely constrained leading to the company continuing to default on its debt obligations. Analytical approach: CARE has taken a view based on the standalone financial profile of ISSL, factoring in the parentage and operational linkages with IL&FS Ltd. ISSL, incorporated in July 2006, is a subsidiary of Infrastructure Leasing & Financial Services Limited (IL&FS), rated ['CARE D' (Single D)] which currently holds a stake of 81.24% in the company. It was a Strategic Business Unit of IL&FS offering Securities & Transaction advisory services before it was hived off as a separate company in FY 2007. The other shareholders are IL&FS Employee Welfare Trust (9.01%), Orix Corporation, Japan (4.75%) and a private equity fund, Croupier Prive Mauritius (5.00%). ISSL is a Professional Clearing Member (PCM) for the equity derivatives and currency derivatives segment on various exchanges like BSE, NSE and MSX. It also offers capital market services like custodial services, depository services, transaction processing, etc. IL&FS TRANSPORTATION: CARE Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of IL&FS Transportation Networks Limited (ITNL) continues to remain in the 'Issuer Not Cooperating ' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 2,241.50 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Long Term/ 890.00 CARE D; ISSUER NOT COOPERATING Short Term Rating continues to remain Bank Facilities under ISSUER NOT COOPERATING category Short Term Bank 230.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Non Convertible 225.00 CARE D; ISSUER NOT COOPERATING Debentures Rating continues to remain under ISSUER NOT COOPERATING category Non Convertible 200.00 CARE D; ISSUER NOT COOPERATING Debentures Rating continues to remain under ISSUER NOT COOPERATING category Non Convertible 390.00 CARE D; ISSUER NOT COOPERATING Debentures Rating continues to remain under ISSUER NOT COOPERATING category Non Convertible 200.00 CARE D; ISSUER NOT COOPERATING Debentures Rating continues to remain under ISSUER NOT COOPERATING category Non Convertible 425.00 CARE D; ISSUER NOT COOPERATING Debentures Rating continues to remain under ISSUER NOT COOPERATING category Non Convertible 250.00 CARE D; ISSUER NOT COOPERATING Debentures Rating continues to remain under ISSUER NOT COOPERATING category Non Convertible 200.00 CARE D; ISSUER NOT COOPERATING Debentures Rating continues to remain under ISSUER NOT COOPERATING category Non Convertible 200.00 CARE D; ISSUER NOT COOPERATING Debentures Rating continues to remain under ISSUER NOT COOPERATING category Non Convertible 100.00 CARE D; ISSUER NOT COOPERATING Debentures Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated March 27, 2019, placed the ratings of ITNL under the 'issuer non-cooperating' category as ITNL had failed to provide information for monitoring of the rating as agreed to in its Rating Agreement. ITNL continues to be non-cooperative despite repeated requests for submission of information through e-mails dated January 24, 2022, February 03, 2022 and February 13, 2022. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above ratings. The rating factors in continued delays in debt servicing. Detailed description of the key rating drivers At the time of last rating on March 10, 2021, the following were the rating strengths and weaknesses: Key Rating Weaknesses * Delay in debt-servicing obligations: As per disclosures on stock exchanges, there have been continuous delays in servicing of debt obligations. CARE has also not received NDS since June 2018. IL&FS Transportation & Networks Limited (ITNL) incorporated in 2000, is a part of the IL&FS group. It is involved in the development, operations and maintenance of surface transportation infrastructure projects encompassing national and state highways, roads, tunnels, flyovers and bridges with expertise in development of Build Operate Transfer (BOT) road projects. ITNL also renders services in the areas of project advisory and management, supervisory in the capacity of lenders' engineer, operation and maintenance (O&M) and toll collection services. On a standalone basis, ITNL has incurred a loss (including other comprehensive income) of INR974.57 crore for FY20 and has net liabilities of INR14859.70 crore for FY20. As per FY20 audited report, matter is still pending with NCLT. INFUTEC HEALTHCARE: CARE Reaffirms D Rating on INR49.09cr Loan -------------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of Infutec Healthcare Limited (IHL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank Facilities 49.09 CARE D Reaffirmed Long Term/ Short Term Bank Facilities 14.50 CARE D/CARE D Reaffirmed Detailed Rationale & Key Rating Drivers The ratings assigned to the bank facilities of IHL continue to factor in on-going delays in servicing of debt obligation owing to its poor liquidity arising due to weak financial performance. Rating Sensitivities Positive Factors - Factors that could lead to positive rating action/upgrade: * Establishing a track record of timely servicing of debt obligations for a period of at least 90 days Detailed description of the key rating drivers Key Rating Weaknesses * On-going delays in debt servicing: As per lender interaction and information received from the company, its debt servicing remained irregular due to poor liquidity followed by weak financial performance marked by negative profitability in FY21 (FY refers to period April 1 to March 31). IHL reported 22% y-o-y dip in its total operating income during FY21 with losses at operating level. Tangible net worth of the company depleted on the back of accretion of loss into reserves and remained negative as on March 31, 2021. Liquidity: Poor IHL's liquidity position remained poor on the back of its loss-making operations during FY21 resulted into cash loss of INR20.81 crore which led to on-going delays in its debt servicing. Further, the company has reported negative cash flow from operations (CFO) of INR19.66 crore as against scheduled debt repayment obligation of INR17.80 crore in FY22. Unencumbered cash and bank balance remained low at INR0.05 crore as on March 31, 2021. IHL's gross current asset days elongated to 258 days in FY21 [PY:191 days] owing to increase in debtors as on March 31, 2021. Current ratio of the company remained modest at 1.06 times as on March 31, 2021. IHL (erstwhile Goa Formulations Ltd, CIN: U24230MH2005PLC155962) was a wholly-owned subsidiary of Indore-based Parental Drugs India Limited (PDIL). As on July 10, 2018, one of the investors i.e. Mahaganpati Investment Private Limited (MIPL) converted preference share of INR48.50 crore (book value) into equity share leading to dilution of the shareholding of PDIL. As on March 31, 2021, PDIL holds 12.24% equity stake in the company whereas the majority holding of 87.76% equity stake is held by MIPL. IHL is engaged in manufacturing of pharmaceutical products mainly into intravenous fluids at its plant located at Hoshiarpur, Punjab. INTERNATIONAL TRADE: CARE Keeps B Debt Rating in Not Cooperating ---------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of International Trade Links Private Limited (ITLPL) continues to remain in the 'Issuer Not Cooperating ' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 24.55 CARE B; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category Short Term Bank 0.30 CARE A4; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated December 8, 2020, placed the rating(s) of ITLPL under the 'issuer non-cooperating' category as ITLPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. ITLPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated October 24, 2021, November 3, 2021 and February 25, 2022. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Detailed description of the key rating drivers Incorporated in January 1991, Kolkata based International Trade Links Private Ltd (ITLPL) was promoted by two brothers Mr Sanjay Chowdhury and Mr Bijoy Chowdhury. Since its inception, the company has been engaged in the business of manufacturing and export of readymade garments. ITLPL is an export-oriented unit (EOU) recognized since 2006. It exports 100% of its products like collared and polo-neck T-shirts to USA and Germany. ITLPL is associated with brands like Surf Style, Alvins Island, Cute, Soa Print, and BB Tropics. The manufacturing facility of the company is located at Bodai, West Bengal with an aggregate installed capacity of 47.8 lakh pieces per annum. The unit is well integrated for knitting, cutting, stitching, sewing, ironing and packing of readymade garments. However, dyeing, bleaching and washing activities are being outsourced on job work basis. LARS ENVIRO: CARE Lowers Rating on INR8cr LT Loan to B ------------------------------------------------------ CARE Ratings reaffirmed ratings on certain bank facilities of Lars Enviro Private Limited (LEPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 8.00 CARE B; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category and Revised from CARE B+; Stable and moved to ISSUER NOT COOPERATING category Long Term/Short 5.00 CARE B; Stable/CARE A4; Term Bank ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category and Revised from CARE B+; Stable/CARE A4 and moved to ISSUER NOT COOPERATING category Short Term Bank 3.00 CARE A4; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE has been seeking information from LEPL to monitor the rating(s) vide e-mail communications/letters dated October 13, 2021, November 11, 2021, November 29, 2021, February 17, 2022, February 24, 2022 among others and numerous phone calls. However, despite repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Further, Lars Enviro Private Limited has not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. The rating on Lars Enviro Private Limited bank facilities will now be denoted as CARE B; Stable/CARE A4; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings have been revised on account of modest scale of operations with losses booked during the year, weak debt coverage indicators, susceptibility of profitability margins to foreign exchange fluctuation risk and presence in highly fragmented and competitive industry. The rating, however, continues to derive strength from established track record with experienced promoters, association with reputed suppliers and customers, comfortable capital structure moderate order book position. Detailed description of the key rating drivers At the time of last rating on February 12, 2021, the following were the rating strengths and weaknesses (updated for the information available from Registrar of Companies): Key Rating Weaknesses * Modest scale of operations and losses booked during the year: TOI remained at INR37.59 crore in FY21 vis-à-vis INR44.15 crore in FY20. The company has booked operating loss of INR0.15 crore in FY21 vis-a-vis operating profit of INR1.70 crore in FY20. Furthermore, debt coverage indicators remained weak owing to losses booked during FY21. * Susceptibility of profitability margins to foreign exchange fluctuation risk: LEPL exports its products to Kenya, Dubai and Philippines which amount to approximately 6% of TOI in FY20 (as against approximately 5% in FY19). Furthermore, the company imports some of raw material from Italy, Germany and USA (approximately 1% of purchases in FY20). The exports and imports are made in different currencies. In absence of any hedging policies adopted by the company, its profitability margins are exposed to foreign exchange fluctuation risk. However, the company has not incurred any foreign exchange loss during last five financial years ended FY20. During FY20, the company has net gain of INR0.01 crore on foreign currency transactions. * Presence in highly fragmented and competitive industry: LEPL operates in highly fragmented and competitive waste water treatment industry, which is marked by presence of large number of small sized players operating on wafer thin margins on account of low entry barriers in the industry. Key Rating Strengths * Established track record with experienced promoters: The directors of LEPL have gained an experience of around four decades in providing environmental engineering services through their association with LEPL and local entities engaged in similar line of business. Being in the industry for such a long period has helped the promoters in gaining adequate acumen about the industry which aids the company in running its operations smoothly. * Association with reputed suppliers and customers: The company caters to well reputed domestic and international players, comprising of both government and private players. Major customers of the company comprise of refineries, petrochemical plants, power plants, metallurgical industries, and nuclear power plants in India. The long track record of operations of LEPL has helped it in gaining repeated orders from reputed clientele which limits the counterparty risk Comfortable capital structure and moderate debt coverage indicators: The capital structure remained comfortable with overall gearing remained at 0.44 times as on March 31, 2021 vis-à-vis 0.32 times as on March 31, 2020. * Moderate order book position: The company has a moderate outstanding order book (OB) position reflecting 0.85x of total operating income of FY20, to be executed over a period of 3-6 months. The moderate order book position indicates revenue visibility over the near term, whereas mixed order book position from diversified industry cushions the company against slowdown operating in single industry. Liquidity: Stretched Liquidity is marked by adequate accruals to repayment obligations and modest cash balance of INR1.89 crore as on March 31, 2020. Its fund based limits are utilized to the extent of 40% during last twelve months ended December 31, 2020. The company has availed moratorium for the period of 6 months from March to August 2020 for interest payments of cash credit account as per Covid-19 Regulatory Package announced by RBI and the same was repaid in two phases in June and September 2020. Further, the company has availed covid assistance term loan of INR0.76 crore (repayments will start in August 2021). LEPL was incorporated in 1997 and is based out of Nagpur (Maharashtra). The company is engaged in offering environmental engineering services which involves providing solution for waste water treatment on turnkey basis. Apart from this LEPL is also engaged in providing consultancy services to the clients after installation of project. MAHAGANAPATHI CASHEW: CARE Lowers Rating on INR13.17cr Loan to B ---------------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of Sri Mahaganapathi Cashew Industries (SMCI), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 13.17 CARE B; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category and Revised from CARE B+; Stable and moved to ISSUER NOT COOPERATING category Short Term Bank 0.12 CARE A4; ISSUER NOT Facilities COOPERATING; Rating moved to ISSUER NOT COOPERATING Category Detailed Rationale and key rating drivers CARE Ratings Ltd has been seeking information from SMCI to monitor the ratings vide e-mail communications/letters dated December 12, 2021, January 3, 2022, January 10, 2022, February 1, 2022, February 2, 2022, February 7, 2022, February 24, 2022 and numerous phone calls. However, despite repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the ratings on the basis of the best available information which however, in CARE Ratings Ltd's opinion is not sufficient to arrive at a fair rating. The rating on SMCI's bank facilities will now be denoted as CARE B; Stable; ISSUER NOT COOPERATING/CARE A4; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings assigned to the bank facilities of SMCI have been revised primarily due to non-availability of requisite information to carry out the review. Detailed description of the key rating drivers At the time of last rating on March 12, 2021, the following were the rating weaknesses and strengths: Key Rating Weaknesses * Small scale of operations: The firm's scale of operations continued to be small in nature with TOI of INR26.37 crore in FY20. Further, the firm had short track record of business operations, however long term presence of partners in the market was expected to benefit the business at large. Further, the firm had achieved turnover of INR22 crore for the 10MFY21. * Susceptibility of profits to volatile price fluctuation of cashew kernel and fluctuation in foreign exchange prices: The products dealt by the firm are cashew kernel which includes cashew and other related products etc. The products being cultivation based are highly volatile by nature and affected by regular fluctuations in the prices. However, the firm being engaged in manufacturing of the same, the fluctuating cost of the cashew kernel is passed on to the customers to a larger extent. * Constitution of the entity as a partnership firm with inherent risk of withdrawal of capital: Sri Mahaganapathi Cashew Industries, being a partnership firm, is exposed to inherent risk of the partner's capital being withdrawn at time of personal contingency and firm being dissolved upon the death/retirement/insolvency of the partners. Moreover, partnership firm business has restricted avenues to raise capital which could prove a hindrance to its growth. Further, there has been decrease in the capital account balances due to cash losses being shared as per their loss sharing ratios. Also, there has been no instances of capital withdrawal during the year. Key Rating Strengths * Experience of partners for three decades in the cashew processing business: SMCI is promoted by Mr. P Ganesh Kamath along with his family members. The managing partner has three decades of experience in cashew business. Due to long term presence of partner in the market, the firm has established good relation with customers and suppliers. * Comfortable capital structure and debt coverage indicators during review period: The capital structure had improved with net worth of INR4.27 Cr as on March 31, 2020. Also, the debt coverage ratio had improved on account of profit earned and increase in capital and lower debt. The debt comprised of CC o/s of INR1.86 Cr, term loans of INR1.19 Cr and unsecured loans INR0.65 Cr. Sri Mahaganapathi Cashew Industries (SMCI) was established in the year 2014 as partnership firm and promoted by Mr. P Ganesh Kamath, Ms. Mamatha G Kamath, Ms. K Smitha Kamath and Mr. Rajesh Kamath. The firm is engaged in processing of raw cashew kernels. The firm sells the processed cashew kernels in Bangalore, Mangalore, Mumbai, Delhi and Punjab. The firm procures raw cashew kernels from international market places like Benin (West Africa) and Tanzania (East Africa). The firm exports 25% of cashew kernels to international markets like Dubai and Europe. Currently, the day to day operations of the firm are managed by Mr. P Ganesh Kamath (Managing Partner). MAHIMA GEMS: CARE Reaffirms B+/A4 Rating on INR12cr LT/ST Loan -------------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of Mahima Gems (MG), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term/ 12.00 CARE B+; Stable/CARE A4 Short Term Reaffirmed Bank Facilities Detailed Rationale & Key Rating Drivers The reaffirmation of the ratings assigned to the bank facilities of MG takes into account the growth momentum in revenues and profitability in 10MFY22 (refers to the period from April 1, 2021 to January 31 2022) albeit continuation of subdued financial performance and presence of elongated operating cycle in FY21 as well as in the current fiscal due to significant increase in receivables and inventory levels. The ratings remain tempered by the firm's overall small scale of operations with moderate profitability margins, geographical and client concentration of revenues, susceptibility to volatility in raw material prices and foreign exchange fluctuations risks. Furthermore, the partnership constitution of the entity imparts limited financial flexibility. However, the ratings continue to derive strength from the longstanding experience and established track record of the promoters in the cut and polished diamonds industry. Rating Sensitivities Positive Factors * Improvement and sustenance of the TOI above 100.00 crores. * Improvement and sustenance of ROCE above 6.5% in a sustained manner. * Improvement in operating cycle to normal levels of being around 100 days. Negative Factors * Deterioration in the gearing exceeding 1.5x. * Further deterioration in the liquidity profile of the entity owing to any significant increase in receivables or inventory Levels Detailed description of key rating drivers Key Rating weakness * Small scale of operations: The firm's scale of operations continues to remain relatively small as the business faced disruption in FY20 and FY21 owing to the outbreak of the corona virus pandemic, exports to Hong Kong/China has been impacted severely. During FY21, the firm reported TOI of INR39.04 crores and ~INR48.40 crore in 10MFY22. The firm has a modest networth base of INR36.77 crore. * Geographic and Client concentration risk prevails: The firm derives major revenue from export markets. Around 83% of its revenues is derived from exports with major sales derived from key G&J markets like Hong Kong (~82%) and USA contributing ~15%. Further, out of INR39.04 crore of revenue achieved in FY21, the firm has around 59% of receivables from one of its key client. This indicates that the firm's revenues is exposed to geographic as well as client concentration. Going forward, growth in revenues coupled with diversification to other G&J markets as well as broadening its client base is crucial from credit perspective. * Elongated operating cycle: Significant exposure to Hong Kong has affected the timely receipt of payments for Mahima Gems. The firm's outstanding receivables remain more or less at similar levels as in FY20. Operating cycle of the firm deteriorated from 301 days in FY20 to 415 days in FY21, on account of lower creditor days and increase in receivable days in FY21. However, the operating cycle has shown signs of recovery and it has started improving in the current fiscal. * Susceptible to volatility in the prices of the diamonds and foreign exchange fluctuation: The firm procures rough diamonds from non – DTC sources and other local suppliers which are further processed into cut and polished diamonds. As the firm procures majority of roughs from the open market, it runs an inherent risk of volatility in rough diamond prices. Besides, MG continues to derive major revenue from export sales, so operational performance of the company is exposed to foreign exchange fluctuation risks. * Constitution as a partnership firm: The credit risk profile of the entity is also tempered by its constitution as partnership firm as there is an inherent risk of withdrawal of the capital which limits its financial flexibility. Key Rating Strengths * Established and experienced promoters with proven track in diamond processing business: Mahima Gems (MG) is promoted by Mr. Hitesh Shah, Mr. Shrenik Shah, Mr. Suvir Shah and Mr. Chintan Shah and is into manufacturing and trading of CPD and rough diamonds. Mr. Hitesh Shah with an experience of over four decades is involved in the procuring of rough diamonds. Mr. Shrenik Shah with an experience of over 14 years looks after the managerial and financial functions. Mr. Suvir Shah with an experience of over one and half decade and looks after the sales and marketing functions. Mr. Chintan Shah has an experience of over a decade and oversees the manufacturing and operational activities. * Industry Prospects: India's diamond exports are expected to grow past the $20 billion mark in FY22, with demand rebounding after the first wave of the Covid-19 pandemic. Towards the second half of last fiscal, pent-up demand and stimuli had buoyed consumption of diamonds and jewellery in the US and China, which account for around 75% of India's polished diamond exports. With the pandemic said to be contained in China, and the US inoculating ~40% of its population, consumer confidence has improved in both countries. Demand will also be bolstered by improving economic growth and declining unemployment. Additionally, restrictions on other spending areas such as overseas travel and lower spending on hospitality mean celebrations are largely restricted to spending on gifting, including diamond jewellery. That is a positive for India's diamond demand outlook. The pandemic has also improved the management of rough diamond inventory. Earlier, prices of roughs moved sharply versus polished diamonds, leading to stocking-up of the former. The pandemic then led to a correction in the inventory of roughs last fiscal, and this trend continues. Companies now tend to purchase roughs when there is visibility in polished-diamond sales. The receivables-collection cycle has also been regularised from the second half of last fiscal, leading to overall net current asset days declining to ~150 from historical levels of 175. Further waves of the pandemic, and working capital management will bear watching. Liquidity: Stretched The average working capital limits utilization continues to remain high at~99%. The firm has a low cash and bank balance of INR0.17 crores. The firm does not have any repayment obligations and have no plans for any debt-funded capex in the near future. Mahima Gems (MG) was established in 1989 as a proprietorship concern by Mr. Hitesh Shah. Later it was converted into a partnership firm which specialized in manufacturing of polished diamonds and trading of rough and polished diamonds. MG has four partners- Mr. Hitesh Shah, Mr. Shrenik Shah, Mr. Chintan Shah and Mr. Suvir Shah. The manufacturing facilities are located in Surat through an associate firm namely Yashvi Diamonds (YD). YD does major job work for MG. Yashvi Diamonds is owned by the promoters of MG and their friends/relative. MALLAIAH AND SONS: CARE Reaffirms B Rating on INR7.79cr Loan ------------------------------------------------------------ CARE Ratings reaffirmed ratings on certain bank facilities of Mallaiah And Sons Edible Oils Private Limited (MSEOPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank Facilities 7.79 CARE B; Stable Reaffirmed Short Term Bank Facilities 3.00 CARE A4 Reaffirmed Detailed Rationale & Key Rating Drivers The ratings assigned to the bank facilities of MSEOPL continues to be constrained by small scale of operation coupled with a net loss reported in FY21 (Audited, refers to period April 1 to March 31), leveraged capital structure with weak debt coverage indicators and elongated operating cycle with stretched liquidity. The rating also factors the company's existence in a highly fragmented industry along with high level of competition with low entry barriers. The rating, however, to derive its strengths from the vast experience of the directors. CARE has also withdrawn the short term rating assigned to the Bank Guarantee facility amounting to INR0.50 crore with immediate effect, as the company has repaid the aforementioned bank facility and there is no amount outstanding under the said facility rated by CARE as on date. Rating Sensitivities Positive Factors * Consistent increase in the company's scale of operations by more than INR50.00 crores with resulting increase in profitability. * Improvement in capital structure and debt coverage indicators marked by a sustained decline in overall gearing below 2x. * Improvement in average collection period to less than 60 days on sustained basis resulting in improvement in liquidity and lower dependence of external borrowings. Negative Factors * Decline in profitability margin marked by PBILDT margin below 4%. Detailed description of the key rating drivers Key Rating Weaknesses * Small scale of operation coupled with net loss reported in FY21: The scale of operations of the company remained relatively small marked by total operating income of INR37.60 crore in FY21 compared to INR35.38 crore in FY20. The key reason for continued subdued performance was significant decline in demand from its core consumers such as schools, colleges and roadside eateries which remained closed due to the COVID-19 restrictions and lockdowns. Further, MSEOPL has clocked sales worth INR31.00 crore in 10MFY22(Provisional). Further, given the highly fragmented and competitive nature of the industry the company is unable to pass on the increase in inputs costs of edible oils to its customers. This impacted the PBILDT margin of the company which deteriorated by 138bps from 6.15% in FY20 to 4.77% in FY21. Moreover, with a high fixed repayment obligation, the company reported a net loss of INR0.37 Cr. in FY21 (as against net profit of INR0.02 Cr. in FY20). Resultantly, MSEOPL has booked cash loss of INR0.21 crore in FY21. * Leveraged capital structure and weak debt coverage indicators: Given the company's low networth base and high overall debt; the company's capital structure remained highly leverage marked by an overall gearing 13.98x as of March 31, 2021 as compared to 17.84x as of March 31, 2020. Debt coverage ratio also deteriorated and remained weak marked by a below unity interest coverage as a result of decline in operating profitability as against fixed finance costs. * Elongated operating cycle: The company purchases the refined oils from manufacturers located in Andhra Pradesh, Kerala and Tamil Nadu. Palm oil and Sunflower oil are purchased from intermediaries who import them from foreign countries. The oil sold has an expiry of 90 days and hence the inventory is stocked between 40-55 days in the warehouse. The main customers being retailers, the company extends credit up to 3-4 months on sales and on purchases avails credit up to 30 days. Due to elongated collection period, the operating cycle also stood stretched at 135 days in FY21 as against 140 days in FY20. Further, the average utilization levels of working capital facility stood at ~90% for the 12 months ended January 2022. * Highly fragmented industry along with high level of competition with low entry barriers: The edible oil industry in India is characterized by intense competition and fragmentation, with the presence of a large number of units attributable to low entry barriers such as low capital and low technical requirements of the business. As a result of this, high competition and fragmentation, profit margins in the edible oil business tend to be thin. Key Rating Strengths * Vast experience of the directors: The managing director, Mr. Gopisetty Mallaiah has about four decades of experience in the edible oil industry. Prior to establishing MSEOPL, Gopisetty Mallaiah S/O VSR & Co. (GM) was established as a partnership concern in 1950s and was engaged in direct trading of edible oils. Mr. Gopisetty Mallaiah has been associated with GM since 1970s. Mr. GV Sanjeev Kumar has been associated with MSEOPL since 2000 and looks after the day-to-day operations of the company. The vast experience of the key managerial personnel is expected to benefit MSEOPL at large. Liquidity: Stretched The company has stretched liquidity position characterized by expectation of inadequate cash accruals to meet debt repayment obligation for FY22. However, promoters are resourceful enough and will fill the liquidity gap by infusing funds. During 10MFY22(Provisional), promoters have infused fund of INR1 crore to meet repayment as well as fulfil working capital need. MSEOPL has also availed covid loans of INR3.30 Cr. during the FY22 to meet its working capital requirements. Further, cash balance of MSEOPL was low at INR0.27 Crore as on March 31, 2021, while company's cash flow from operations stood at INR 2.46 crore for FY21. Furthermore, Average utilization of working capital limit for the last 12 months ended i.e., January 31, 2022 remained high at ~90%. Andhra Pradesh-based, Mallaiah and Sons Edible Oils Private Limited (MSEOPL) was incorporated on July 08, 1996 as a Private Limited Company by Mr. Gopisetty Mallaiah and Mr. Garre Venkateswara Rao in Vijayawada. Presently the company has four directors namely, Mr. Gopisetty Mallaiah, Ms. Gopisetty Radha Devi, Mr. GV Sanjeev Kumar and Mr. GVSNK Chaitanya. MSEOPL is engaged in packing and trading of edible oils. The company procures the oil in tankers, from the suppliers located in Andhra Pradesh and Kerala and further repacks and markets them in the brand name of 'GM' to the retailers and wholesalers located in Andhra Pradesh and Telangana. The products of MSEOPL include Palm oil, Sunflower oil, Groundnut oil, Rice bran oil and Coconut oil. The packaging facility is located at Gollapudi, Vijayawada. MANGLAM FOODS: CARE Keeps C+ Debt Rating in Not Cooperating ----------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Manglam Foods (MF) continues to remain in the 'Issuer Not Cooperating ' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 8.83 CARE C+; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated January 29, 2021, placed the rating(s) of MF under the 'issuer non-cooperating' category as MF had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. MF continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated December 15, 2021, December 25, 2021 and January 4, 2022. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Detailed description of the key rating drivers Jabalpur (Madhya Pradesh) based Manglam Foods (MF) was formed in 2013 as a proprietorship concern by Mrs. Sapna Agrawal. Earlier MGF was mainly engaged in the processing of rice for government department on job work basis and was also engaged in trading of agricultural commodities such as rahar, urad, wheat, murgi dana etc. MARUTI CONSTRUCTION: CARE Lowers Rating on INR2cr LT Loan to B -------------------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of Maruti Construction Co. (MCC), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 2.00 CARE B; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category and Revised from CARE B+; Stable and moved to ISSUER NOT COOPERATING category Short Term Bank 7.95 CARE A4; ISSUER NOT Facilities COOPERATING; Rating moved to ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE Ratings Ltd has been seeking information from MCC to monitor the rating vide e-mail communications dated October 8, 2021, October 12, 2021, January 31, 2022, February 9, 2022, February 14, 2022 and numerous phone calls. However, despite repeated requests, the firm has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE Ratings Ltd has reviewed the ratings on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. The rating on MCC's bank facilities will now be denoted as CARE B; Stable; ISSUER NOT COOPERATING /CARE A4; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The revision in the rating assigned to the bank facilities of MCC is on account of non-availability of requisite information. Detailed description of the key rating drivers At the time of last rating on March 17, 2021 the following were the rating strengths and weaknesses: Key Rating Weaknesses * Significant decline in scale of operations coupled with moderate profitability: During FY20, MCC's scale of operations declined by 42% marked by TOI of INR45.92 crore (INR78.80 crore during FY19) on the back of slow pace of execution of work on hand as well as lower billing in the months of February and March 2020. Further, its scale of operations declined in 11MFY21 (Prov.) marked by TOI of INR23.68 crore due to lockdown and cessation of work for few months due to Covid pandemic. The firm continued to report moderate operating margin at 8.17% in FY20 as compared to 6.93% in FY19 which is on account of lower cost of sales. Net profit margin declined in line with the fall in revenue and stood at 3.14% in FY20 as against 5.09% in FY19. GCA also declined and stood at INR2.22 crore in FY20 (INR4.57 crore in FY19). * Proprietorship nature of constitution: MCC being a proprietorship entity, the risks associated with withdrawal of proprietor's capital exists. The firm is exposed to inherent risk of the capital being withdrawn at a time of personal contingency as it also has limited ability to raise capital and poor succession planning may result in dissolution of the firm. * Presence in competitive construction industry and tender driven nature of business: MCC participates in the tender invited by government departments of various states. Hence, the entire business prospects are highly dependent on successful accepted bids. Further, the construction industry is fragmented in nature with a large number of medium scale players present at the regional level coupled with the tender driven nature of the construction contracts poses huge competition and puts pressure on the profitability margins of the players. Key Rating Strengths * Experienced proprietor with established track record of operations: MCC was formed in the year 2006 as a partnership firm and later converted into proprietorship firm in year 2008 by Mr. Dhiraj Gorasia. The firm is engaged in civil construction works for various government departments. Mr. Dhiraj Gorasia has experience of over two decades in the civil construction industry and looks after the overall management of the firm. The firm has established track record of operations of over a decade and half which helps the firm to pocket the tenders invited by various government entities. * Moderate capital structure and debt coverage indicators: MCC's capital structure continued to remain moderate marked overall gearing of 1.70x (1.75x in FY19) on the back of marginal decline in total debt level. The firm's debt coverage indicators declined in line with the fall in PBILDT as well as gross cash accruals, albeit remained moderate. Interest coverage and TD/GCA stood at 3.63x and 10.14 years respectively as on March 31, 2020. (6.14x and 5.12 years as on March 31, 2019). * Moderate order book position: MCC's has an unexecuted order book position at INR98.38 crore as of February 28, 2021. These orders are mainly from government entities including urban local bodies and state government undertakings, thus limiting the counter-party credit risk for the firm. However, order book concentration remained high with top five orders forming around 79% of the unexecuted order book. MCC was formed in the year 2006 as a partnership firm, promoted by Mr. Dhiraj Gorasia and Mr. Pankaj Kevadiya, later on converted into proprietorship firm managed by Mr. Dhiraj Gorasia since 2008 and is engaged into the business of civil construction work. The firm undertakes civil construction work and also sublet to sub-contractors majorly pertaining to construction of road, drainage and water supply largely for State Government authorities of Gujarat, Madhya Pradesh and Odisha. MCC is Class 'AA' registered contractor with state governments of Gujarat and Madhya Pradesh. The execution time line of its orders on hand largely remains in the range of 6 – 12 months. NECO HEAVY: CARE Reaffirms B/A4 Rating on INR2.53cr LT/ST Loan -------------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of Neco Heavy Engineering and Castings Limited (NHECL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term/ 2.53 CARE B; Stable/CARE A4 Short Term Reaffirmed Bank Facilities Short Term Bank Facilities 1.00 CARE A4 Reaffirmed Detailed Rationale & Key Rating Drivers The reaffirmation of the ratings to long-term and short-term bank facilities of NHECL continue to remain constrained on account of deterioration in the financial risk profile of the company marked by decline in total operating income, loss registered by the company, increased debt levels during FY21 (refers to the period from April 1 to March 31) & during 9MFY22 (Unaudited, refers to April 1 to December 31). The ratings, further, takes into account the elongation in operating cycle, risk associated with volatility in raw material price and project execution risk associated with manufacturing of DI Casting (ARPA-450) and pipe fittings project. The ratings, however, continue to derive strength from vast experience of the promoters and long-established track record of the company's operations. Further CARE also takes a note of deteriorated financial profile of one of the Group Company. Rating Sensitivity Positive Sensitivity: Factors that could lead to positive rating action/upgrade: * Improvement in scale of operation of the company from its current level to above INR30 crore on sustainable basis. * Reduction in inventory holding period of the company from its current level of 298 days to below 150 days. Negative Sensitivities: Factors that could lead to negative rating action/downgrade * Continued losses at PBILDT Level on a sustained basis. * Any un-envisaged increase in debt resulting in significant deterioration of overall gearing ratio from its current level. Detailed description of the key rating drivers Key Rating Weaknesses * Financial risk profile marked by decline in the total operating income and losses at PBILDT level during FY21: The total operating income of the company declined during FY21 from INR23.60 crore to INR13.80 crore on account of slowdown at end user industry. Further, the company reported a loss at PBILDT level of INR0.21 crore as against profit of Rs.0.38 crore at PBILDT level during FY20, as a result of higher fixed cost and sharp decline in revenue. The company continued to report losses at net level in FY21 at INR2.54 crore (PY: INR2.26 crore loss). Further, the company registered a TOI of INR16.33 crores in 9MFY22 as compared to INR8.43 crore during 9MFY21. The improvement was on account of increase in demand and opening up of economy. * Moderation in capital structure coupled with wakened debt protection: Increased debt levels and decline in profitability resulted in deterioration in solvency position of the company. The overall gearing deteriorated to 1.39x as on March 31, 2021, as against 0.91x as on March 31, 2020, while the interest coverage was negative in FY21 as against 0.21x in FY20. The company had availed GECL of INR2.15 crore and CECL of INR1.15 crore. Further the unsecured loan also rose to INR3.71 crore as on March 31, 2021, as against INR0.96 crore from related parties to fund its ongoing capex. While the working capital borrowing reduced to INR7.84 crore as on March 31, 2021, as against INR11.41 crore as on March 31, 2020.However, the gearing continues to remain moderate. Further, the tangible net worth of the company declined owing to the loss registered by the company over last few years. * Working Capital intensive nature of operations: NHECL operates in a working capital-intensive nature of business with funds being blocked in inventory. NHECL had an elongated operating cycle of 477 days during FY21 from 288 days during FY20, majorly on account of inventory holding period of 486 days (work in progress contributes 75% of inventories for FY21). Receivables and Creditor's days were 76 days and 85 days respectively. * Risk associated with volatility in raw material price: The key raw material of NHECL comprises of Pig Iron, Mild steel scrap, Iron scrap, Coal and Coke, etc which are generally procured from the domestic market. NHECL operates in an industry where the raw material cost is one of the major cost components (constituting around 47% of total operating income during FY21). The company is sensitive to any adverse movement in prices of raw materials and ability of the company to pass on the same to its customers is limited with existing competition. * Project Execution Risk: The company is currently undertaking an expansion project for manufacturing of DI manhole and iron pipe project. The total cost of the project is INR4 crore which is to be funded by unsecured loans from promoters. As on December 31, 2021, the company has incurred INR3.65 crore towards purchase and installation of machinery. The commercial production in expected to commence from April 2022. The ability of the company to complete the planned capex on time without any cost overrun will be the key rating sensitivity. * Deteriorated financial profile of one of the Group Company: NHECL is part of NECO group of industries. One of the group companies of NECO group of Industries, Jaiswal Neco Industries Limited rated default rating by other domestic CRA, has deteriorated financial risk profile. During FY21, around 33% of TOI, i.e., INR4.65(PY: INR3.47 crore) crore sale of goods and services contributed by above group company. Key Rating Strengths * Experienced promoter: NHECL was promoted by Shri. Basant Lal Shaw. He has an experience of more than three decades in the steel and casting industry. The company is currently managed by second generation of the family Mr. Arbind Kumar Jaiswal and Mr. Ramesh Jaiswal who has an experience of more two three decades in the steel industry. The promoters are well supported by professionally qualified management team. * Long established track record in the steel and casting business: NHECL was promoted by Shri. Basant Lal Shaw in the year 1987. The company sells its products to large players such as Steel authority of India, Bharat Heavy Electricals Limited among other public sector undertakings. NHECL enjoys a relationship of more than a decade with the companies. Being in the industry for so long has helped the promoters in gaining adequate acumen about the business. Accordingly, company is adding new products with its sales portfolio namely ductile iron manholes and iron pipes. Liquidity Analysis - Stretched The liquidity position is marked by elongated working capital cycle, high utilization of bank limits and modest cash balance. The elongated operating cycle of the company was of 477 days during FY21, the major portion is blocked with inventories of 486 days. Current ratio of the company stood at 1.61x as on March 31, 2021. The average utilization of the fund based working capital limits continues to be high and was above 90% for last twelve month ended January 2022. The company had availed moratorium for payment of interest on cash credit facility for the period March 2020 to August 2020. Further, the company had availed additional working capital facilities of INR1.15 crore under COVID-19 relief scheme - CECL (around 10% of working capital limit) and INR2.15 crore under COVID-19 relief scheme – ECGCL scheme (around 20% of working capital limit. The timely payment of funded interest term loan and instalment of additional working capital term loan will be a key rating monitorable. NHECL was established by Shri. Basant Lall Shaw during 1987 in Nagpur, Maharashtra, as Neco Castings Limited (NCL). During April 2006, Ashutosh Castings Limited (ACL) was merged with NHECL. Further during 2009 company added fabrication facility and changed its name to NHECL. NHECL has an installed capacity of 20,000 Tonnes per annum (TPA) and has facilities to undertake single casting of around 25 Tonne. The company manufactures the products required for heavy engineering sector like, Steel Plants, material handling equipment manufacturers, Crane manufacturers, Sugar crushing mills etc. Also, the company has facility of fabrication of brackets, and other industrial fabrication as per requirements of the customer. RAJENDRA ISPAT: CARE Reaffirms B+ Rating on INR26.50cr LT Loan -------------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of Rajendra Ispat Private Limited (RIPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 26.50 CARE B+; Stable Reaffirmed Detailed Rationale & Key Rating Drivers The rating assigned to the bank facilities of RIPL continues to remain constrained by its small scale of operations, weak financial performance in FY21 (refers to the period April 1 to March 31), volatility in raw material prices, working capital intensive nature of operations, weak debt coverage indicators and presence in a highly competitive industry. However, the aforesaid constraints are partially offset by its experienced promoters with satisfactory track record of operations and satisfactory capital structure. Key Rating Sensitivities Positive factors- Factors that could lead to positive rating action/upgrade: * Increase in the scale of operations (turnover above INR120 crore) with improvement in operating margin on a sustained basis. * Improvement in gross current asset days to below 120 days and its reduced reliance on external borrowing for funding its working capital requirement on a sustained basis. Negative factors- Factors that could lead to negative rating action/downgrade: * Any sizeable decline in the scale of operations (turnover below INR25 crore) with deterioration in operating margin on a sustained basis. * Any further deterioration in gross current asset days and increased reliance on external borrowing for funding its working capital requirement on as sustained basis. Detailed description of key rating drivers Key Rating Weaknesses * Small scale of operations with weak financial performance The scale of operations of the company remained small marked by total operating income of INR50.29 crore (INR76.30 crore in FY20) with a PAT of INR0.21 crore (INR0.23 crore in FY20) in FY21. The total operating income of the company witnessed a declining trend during the past three years (FY19-FY21). Furthermore, the net worth has also remained at INR32.41 crore as on March 31, 2021. The small size restricts the financial flexibility of the company in times of stress. The profitability margin of the company also remained low marked by PBILDT margin of 4.77% (3.92% in FY20) and PAT margin of 0.41% (0.30% in FY20) in FY21. * Volatility in raw material prices: The company does not have backward integration for its basic raw materials (iron and steel alloys), and it procures the same from open market at the spot price. Since the raw material is a major cost driver, the prices of which are volatile in nature, resulting in profitability of the company being susceptible to fluctuation in raw material prices. * Working capital intensive nature of operations: RIPL's business, being dismantling and trading of scrap metals and manufacturing of mild steel round bars, is working capital intensive in nature marked by high average inventory and collection periods. The average inventory period was high at 343 days in FY21 mainly due to its long processing period in dismantling of plants and trading of scrap metal segment. The average collection period also remained on the higher side at 93 days in FY21. This led to highly stretched operating cycle of 346 days in FY21. Moreover, the average bank limits utilisation remained moderately high at around 70% during the last 12 months ended December 2021. * Weak debt coverage indicators: The debt coverage indicators of the company remained weak marked by interest coverage of 1.22x (FY20: 1.19x) and total debt to GCA of 77.27x (FY20: 74.97x) in FY21. Moreover, the interest coverage has remained stable during FY21 as against FY20 due to lower operating profit achieved and lower interest expenses during FY20. * Highly competitive and fragmented industry: The industry in which the company operates is highly fragmented and competitive, marked by the presence of numerous players in northern and eastern India. Hence, the players in the industry do not have pricing power and are exposed to competition induced pressures on profitability. Further, RIPL's products being steel related, are subject to the risks associated with the industry like cyclicality and price volatility. Key Rating Strengths * Experienced promoters with satisfactory track record of operation: Mr. Rajendra Kumar Modi, having more than five decades of experience in same industry, looks after the overall operations of the company. He is supported by director, Mrs. Rajeshwari Modi, who also has more than two decades of experience in similar type of industry. * Satisfactory capital structure: The capital structure of the company continues to remain satisfactory marked by debt equity and overall gearing ratios of 0.58x and 0.85x respectively, as on March 31, 2021, as compared with debt equity and overall gearing ratios of 0.25x and 0.93x respectively, as on March 31, 2020. Liquidity: Stretched The liquidity position of the company remained stretched as reflected by high operating cycle of 346 days in FY21 due to higher inventory holding in view of working capital-intensive nature of business. Moreover, the unencumbered cash balance was low at Rs.0.32 crore as of March 31, 2021. The company has generated low cash accruals of INR0.36 crore during FY21 as against fixed repayment obligation of INR0.84 crore in FY22. Further, the average utilisation of working capital limits was high, at around 70% during last 12 months ended December 2021. The company has not availed any moratorium under the RBI regulatory packages last year. However, it has taken a GECL loan of INR4.80 crore, to tide over the COVID-19 pandemic situation. Moreover, the current ratio stood at 2.70x as on March 31, 2021. RIPL, incorporated in December 2004, is being managed by Mr. Rajendra Kumar Modi and Mrs. Rajeshwari Modi. Since its inception, the company has been engaged in dismantling of abundant plants and trading of scrap metals; however, from December 2017 onwards, the company has also started manufacturing mild steel round bars. The manufacturing unit of the company is located at Belur, Howrah, West Bengal with an installed capacity of 31200 metric tons per annum (MTPA). RAVELS APPARELS: CARE Reaffirms B Rating on INR1.77cr LT Loan ------------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of Ravels Apparels Private Limited (RAPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank Facilities 1.77 CARE B; Stable Reaffirmed Short Term Bank Facilities 8.00 CARE A4 Reaffirmed Detailed Rationale & Key Rating Drivers The ratings assigned to the bank facilities of RAPL continues to be constrained by small scale of operation coupled with a net loss as well as cash loss reported in FY21(Audited, refers to period April 1 to March 31), leveraged capital structure with weak debt coverage indicators and elongated operating cycle with stretched liquidity. The rating also factors the company's existence in a highly competitive industry with low entry barriers, foreign exchange fluctuation risk and fortunes linked to textile industry. The rating, however, to derive its strengths from the vast experience of the directors. Rating Sensitivities Positive Factors * Increase in the total operating income (TOI) of the company above INR60 crore on sustained basis. * Improvement in profitability margins as marked by PBILDT and PAT margins above 7% and 3% respectively on a sustained basis. Negative Factors * Deterioration in capital structure marked by overall gearing of above 5.00x. * Any cash flow mismatch from operations affecting repayment capability of the company. Detailed description of the key rating drivers Key Rating Weaknesses * Small scale of operations and net loss reported in FY21: The scale of operations of the company dropped by 46% and continue to remain small marked by total operating income to Rs.15.27 crore in FY21 as compared to INR28.43 crore during the previous year. The decline in TOI is mainly attributable to continued covid related disruption in which saw a decline in new export orders inflow as well as cancellations of existing orders. Further, RAPL derived ~88% of its total revenue through exports and remaining through domestic sales in FY21. Consequently, RAPL reported an operating loss of INR2.80 crore as the relative drop in TOI was higher compared to drop in cost of sales. Resultantly, RAPL also posted a net loss of INR3.80 crore and cash loss of INR3.43 crore in FY21 as against PAT and GCA of INR0.02 crore and INR0.51 crore in FY20. * Leverage capital structure and weak debt coverage: RAPL's capital structure of RAPL deteriorated and stood leveraged marked by an overall gearing of 4.30x as on March 31, 2021 as compared to 1.59x as on March 31, 2020 due to accretion of losses to reserves along with increase in debt level led uptake of Covid-19 GECL loan. Further, despite a stable finance cost RAPL's debt coverage indictors were impacted negatively and remained weak as result of losses reported during the FY21 at operating as well as cash level. * Elongated operating cycle: The operating cycle of the company stood elongated at 182 days for FY21 as against 118 days for FY20. This is primarily because of high inventory holding period which stood at 160 days and elongation in collection days to 157 days in FY21. The inventory holding is mainly in the form of raw materials and work in process. The company manufactures garments for different genre (women and kids) resulting in high requirement of raw materials (different type of fabric, color etc.). Furthermore, the company is required to maintain adequate inventory at each processing stage for smooth running of its production processes like checking, washing, steam pressing and packaging. Further, RAPL generates a large portion of its revenue in the Q4 of the financial year and offers its customers a credit period ranging from 45-60 days which leads to build up of receivables at the end of March. This along with along a low base of gross sales resulted in an extension in the company's receivables period from 113 days in FY20 to 157 days in FY21. * Foreign exchange fluctuation risk: RAPL's operations are majorly dependent on the export market. However, the raw material is mainly procured from domestic markets. With initial cash outlay for procurement in domestic currency and sales realization in foreign currency, the company is exposed to the fluctuation in exchange rates. However, some comfort can be drawn from the fact that the company is hedging its foreign currency exposure through forward purchase contract which is able to cover and mitigate 20-25% of the total exposure to exchange fluctuation risk associated with exports. * Intense competition in the industry due to low entry barriers: RAPL operates in a highly competitive industry marked by the presence of a large number of players in the organized and unorganized sector. Further, with presence of various players, the same limits bargaining power which exerts pressure on its margins. * Fortunes linked to the textile industry: Indian textile industry which is the second largest employer after agriculture and inherently cyclical in nature. Any adverse changes in the global economic outlook as well as demand-supply scenario in the domestic market directly impacts demand of the textile industry. Textile industry as a whole remains vulnerable to various factors such as fluctuations in prices of cotton, mobilization of adequate workforce and changes in government policies for overall development of the textile industry. Any significant changes in such factors will have direct impact on the business operations of the company. Key Rating Strengths * Experienced management: The operations of RAPL are currently being managed by Mr. Nakul Kapahi, Mr. Sanjai Soni, Ms. Neelam Kapahi, Mr. Kapil Kapahi and Ms. Mridula Soni. All the directors are graduates by qualification and have an experience of more than one and a half decades of experience in the manufacturing industry through their association with RAPL and other family run businesses. Liquidity: Stretched The liquidity position of the firm remained stretched marked by tightly matched accruals vis-à-vis repayment obligations of FY22. Its packing credit limit remained almost fully utilized to the extent of 98% during past 10 months ended January 31, 2022. Further, the also avails an export bill discounting facility where utilization remains close to 50%. The cash and bank balance stood at INR0.34 crore as on March 31, 2021. Whereas, the company had a negative cash flow from operating worth INR0.82 crore (vis-à-vis a positive cash flow of INR2.19 crore in FY20). The firm has availed additional Covid-19 GECL term loan worth INR2.00 crore. Gurgaon, Haryana-based Ravels Apparels Private Limited was incorporated in 1993. The company has succeeded erstwhile partnership firm Ravels International established in 1983. The company is currently managed by Mr. Sanjai Soni, Ms. Neelam Kapahi, Mr. Kapil Kapahi, Mr. Nakul Kapahi and Ms. Mridula Soni. RAPL is engaged in the manufacturing of readymade garments for women and kids at its unit located in Haryana having an installed capacity of 8,00,000 units per annum. SHIV SHAKTI: CARE Keeps C Debt Rating in Not Cooperating Category ----------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Shiv Shakti Monolithics Private Limited (SSMPL) continues to remain in the 'Issuer Not Cooperating ' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 5.00 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated January 15, 2021, placed the rating(s) of SSMPL under the 'issuer non-cooperating' category as SSMPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. SSMPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated December 1, 2021, December 11, 2021, December 30, 2021. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Shiv Shakti Monolithics Private Limited (SSMPL) was incorporated in July, 2004 by Mr. Sunil Kumar Seth, Mr. Radha Krishan Purbey and their family members. Since its inception, the company has been engaged in manufacturing of refractory materials like calcined MAG carbon, refractory grog, castable, bed material, fire clay, refractory bricks etc. which mainly find applications in iron and steel industry. The manufacturing facility of the company is located at Adityapur Industrial Area, Jamshedpur with aggregate installed capacity of 21760 metric ton per annum. SREI EQUIPMENT: CARE Reaffirms D Ratings on Bank Debts ------------------------------------------------------ CARE Ratings reaffirmed ratings on certain bank facilities of Srei Equipment Finance Limited (SEFL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank Facilities 15,854.21 CARE D Reaffirmed Short Term Bank Facilities 1,058.00 CARE D Reaffirmed Non-Convertible Debenture issue (Series VII, XII, XIV and XV) 352.15 CARE D Reaffirmed Proposed Non- Convertible Debenture issue 0.30 CARE D Reaffirmed Unsecured Subordinated Tier II NCDs (Series IV, V, VII & IX) 109.80 CARE D Reaffirmed Perpetual debt (Series I) 37.50 CARE D Reaffirmed Detailed Rationale & Key Rating Drivers The ratings assigned to the bank facilities and instruments of SEFL continue to remain constrained by the continuing delays in debt servicing by the company. The Board of SEFL and its holding company Srei Infrastructure Finance Limited (SIFL) was superseded by the Reserve Bank of India (RBI) on October 4, 2021 and it is presently being managed by the Administrator appointed by the RBI. Also, SEFL and SIFL have been admitted under Corporate Insolvency Resolution Process (CIRP) vide Hon'ble National Company Law Tribunal (NCLT) order dated October 8, 2021. SEFL had earlier approached Hon'ble NCLT, Kolkata with two Schemes of Arrangement which proposed for restructuring of its debt and also obtain formal consent from required majority of lenders for the slump exchange transaction of assets/liabilities from SIFL. Both the schemes of arrangement have been rejected by majority of the lenders. Based on application filed by the Administrator, Hon'ble NCLT, vide Order dated February 14, 2022, has directed consolidated insolvency resolution process for SEFL and SIFL. The ratings take note of the significant losses incurred by the company in FY21 (refers to the period April 1 to March 31) and H1FY22 and erosion of networth. Rating Sensitivities Positive Factors – Factors that could lead to positive rating action/upgrade: * Successful restructuring of debt and sustained improvement in liquidity leading to timely debt servicing. * Improvement in asset quality and profitability. * Capital Adequacy Ratio (CAR) remaining above regulatory requirement on sustained basis. Negative Factors: Not Applicable Detailed description of the key rating drivers Key Rating Weaknesses * Delays in servicing of debt obligations: The collections of the company were significantly impacted on account of disruptions caused by the Covid-19 pandemic and large proportion of borrowers applying for one-time restructuring of their loans. This resulted in significant cash flow mismatch. The company had applied for restructuring of its liabilities through the schemes filed in NCLT. The schemes were rejected by the lenders. The company is presently under CIRP. * Significant losses reported in FY21 and H1FY22: SEFL reported net loss of INR7,136 crore in FY21 and INR2,955 crore in H1FY22 due to significant increase in provisions amidst lower interest income. The same has resulted in negative networth. Liquidity: Poor There are on-going delays/default on the borrowings availed by the company and the company is under CIRP. SEFL was incorporated on June 13, 2006, under the name of 'Srei Infrastructure Development Ltd.' as a subsidiary of SIFL for financing and development of infrastructure projects. In April 2008, SEFL was converted into a 50:50 JV company with BNP Paribas Lease Group (BPLG; a 100% subsidiary of BNP Paribas Bank) and SIFL divested its equipment financing and leasing business along with all the assets & liabilities to SEFL as on January 1, 2008. In June 2016, SIFL acquired the 50% stake of BPLG in SEFL and it became a 100% subsidiary of SIFL. SEFL is engaged in leasing and hire-purchase financing/hypothecation of construction & mining and allied equipment, tipper & allied equipment, IT & allied equipment, medical & allied equipment, farm equipment and loans against property. The Lending Business, Interest Earning Business & Lease Business of SIFL was transferred to SEFL w.e.f October 1, 2019 pursuant to a slump exchange transaction. SREI INFRASTRUCTURE: CARE Reaffirms D Ratings on Bank Debts ----------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of Srei Infrastructure Finance Limited (SIFL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank Facilities 10,772.71 CARE D Reaffirmed Short Term Bank Facilities 345.00 CARE D Reaffirmed Long Term Infrastructure Bond 20.22 CARE D Reaffirmed Non-Convertible Debenture issue (Series II, IV, V) 95.90 CARE D Reaffirmed Unsecured Subordinated Tier II NCDs (Series IV-VI) 594.51 CARE D Reaffirmed Detailed Rationale & Key Rating Drivers The ratings assigned to the bank facilities and instruments of SIFL continue to remain constrained by the continuing delays in debt servicing. The Board of SIFL and its subsidiary Srei Equipment Finance Limited (SEFL) was superseded by the Reserve Bank of India (RBI) on October 4, 2021 and it is presently being managed by the Administrator appointed by the RBI. Also, SIFL and SEFL have been admitted under Corporate Insolvency Resolution Process (CIRP) vide Hon'ble National Company Law Tribunal (NCLT) order dated October 8, 2021. SEFL had earlier approached Hon'ble NCLT, Kolkata with two Schemes of Arrangement which proposed for restructuring of its debt and also obtain formal consent from required majority of lenders for the slump exchange transaction of assets/liabilities from SIFL. Both the schemes of arrangement have been rejected by majority of the lenders. Based on application filed by the Administrator, Hon'ble NCLT, vide Order dated February 14, 2022, has directed consolidated insolvency resolution process for SEFL and SIFL. The ratings take note of the significant consolidated losses incurred by the company in FY21 (refers to the period April 1 to March 31) and 9MFY22 and erosion of networth. Rating Sensitivities Positive Factors – Factors that could lead to positive rating action/upgrade: * Successful restructuring of debt and sustained improvement in liquidity leading to timely debt servicing. * Improvement in asset quality and profitability. * Capital Adequacy Ratio (CAR) remaining above regulatory requirement on sustained basis. Key Rating Weaknesses * Delays in servicing of debt obligations: SIFL had given effect to the slump exchange for the transfer of its Lending Business, Interest Earning Business & Lease Business including external borrowings thereon, to its wholly owned subsidiary SEFL in its accounts for the quarter ended December 31, 2019 with appointed date of October 1, 2019. Though SIFL has transferred the rated debt to SEFL in the financial statements, CARE continued to rate the debts under SIFL due to the continuing uncertainty involved with the slump exchange in view of consent from all the lenders not being obtained. The collections of SEFL (including transferred book of SIFL) were significantly impacted on account of disruptions caused by the Covid-19 pandemic and large proportion of borrowers applying for one-time restructuring of their loans. This resulted in significant cash flow mismatch. The company had applied for restructuring of its liabilities through the schemes filed in NCLT. The schemes have been rejected by the lenders. Both the companies are presently under CIRP. * Significant losses reported in FY21 and H1FY22: SIFL reported consolidated net loss of INR7,338 crore in FY21 and INR2,869 crore in 9MFY22 due to significant increase in provisions amidst lower interest income. The same has resulted in negative networth. Liquidity: Poor There are on-going delays/default on the borrowings and both SEFL and SIFL are under CIRP. SIFL, a three-decade old Kolkata-based NBFC, was engaged in leasing and hire-purchase/hypothecation financing of heavy construction equipment and financing of infrastructure related projects. Pursuant to forming a 50:50 joint venture (JV) with BNP Paribas Lease Group (BPLG), SIFL divested a major part of its equipment financing and leasing business to SEFL. Post divestment, SIFL was engaged in project financing and infrastructure project advisory. In June 2016, SIFL acquired the 50% stake of BPLG in SEFL, resulting in SEFL becoming a 100% subsidiary of SIFL and BPLG acquiring 5% stake of SIFL against its shareholding in SEFL. The Lending Business, Interest Earning Business & Lease Business of SIFL was transferred to SEFL w.e.f October 1, 2019 pursuant to the slump exchange. TIRUMULA INDUSTRIES: CARE Moves B Debt Rating to Not Cooperating ---------------------------------------------------------------- CARE Ratings has migrated the rating on bank facilities of Tirumula Industries Private Limited (TIPL) to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 10.00 CARE B; Stable; ISSUER NOT Facilities COOPERATING; Rating moved to ISSUER NOT COOPERATING Category Detailed Rationale and key rating drivers CARE Ratings Ltd has been seeking information from TIPL to monitor the ratings vide email communications/letters dated October 19, 2021, October 27, 2021, December 7, 2021, January 5, 2022, February 1, 2022, February 9, 2022, February 14, 2022, February 24, 2022 and numerous phone calls. However, despite repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the ratings on the basis of the best available information which however, in CARE Ratings Ltd's opinion is not sufficient to arrive at a fair rating. The rating on TIPL'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 rating(s). The rating assigned to the bank facilities of Tirumula Industries Private Limited (TIPL) is constrained by its small scale of operations with low profitability, leveraged capital structure, weak debt coverage indicators, elongated operating cycle and presence in a highly fragmented and competitive nature of industry. The rating, however, derive comfort from experienced promoters. Detailed description of the key rating drivers At the time of last rating on February 12, 2021, the following were the rating weaknesses and strengths (updated from information available from registrar of companies): Detailed Rationale and key rating drivers Key Rating Weaknesses * Small scale of operations with low profitability, weak capital structure and weak debt coverage indicators: The scale of operation of the company has improved but remained small marked by TOI of INR33.87 crores during FY21 against INR3.06 crore during FY20 due to increase in sale of products. Further, profitability has also improved but remained low as company has started to report profits unlike losses in previous year. During FY21, the company has reported PBILDT Margin of 4.55% (PBILDT in absolute terms: INR1.54 crore) and PAT Margin of 0.50% (PAT in absolute terms: INR0.17 crores). Resultantly gross cash accruals also turn positive but remained low at INR0.36 crore during FY21 as against cash losses during FY20. * Leveraged capital structure and weak debt coverage indicators: Capital structure has improved on account of improved tangible net worth level as of March 31, 2021 due to profit accretion but remained leveraged marked by overall gearing ratio of 1.93x as against 3.48x as of March 31, 2020. Debt coverage indicators have improved and turned positive but remained weak marked by TDGCA ratio of 29.21 years during FY21 due to low GCA levels against total debt. Further, interest coverage ratio remained at 1.39x during FY21 due to higher interest and finance charges. * Elongated operating cycle: Operating cycle of the company has improved but remained elongated at 83 days during FY21 as against 434 days during FY20. Improvement was on account of declined inventory holding period as well as collection period. * Highly fragmented and competitive nature of industry: The Indian trading industry is highly unorganized and fragmented in nature. Further, based on product type, the spices and pan asala industry can be segmented into variety of products and features a fragmented and competitive landscape owing to the presence of many small-scale entities. The industry also features some large companies holding prominent positions, making the market intensely competitive. Key Rating Strengths * Experienced promoters: The key promoter; Mr. Polaki Gopalkrishna has over two decades of experience in diversified line of business. He looks after the day-to-day operations of the company supported by other directors Mrs. Polaki Anita, Mrs. Polaki Tirumula and Mr. Rajesh Polaki. Tirumula Industries Private Limited (TIPL) was incorporated in June 2001 by Mr. Polaki Gopalkrishna, Mrs. Polaki Anita, Mr. Polaki Tirumula and Mr. Rajesh Polaki. The company is into manufacturing and sales of spices and pan masala. The manufacturing unit of the company is located at Berhampur, Orissa with a production capacity of 2520 metric tons per annum. The company sells its pan masala and spices under the brand name of "K909 pan masala", "Kishanji Mawa" and "Gopalji Delux Mix" in the state of Orissa and Andhra Pradesh. Moreover, the company has started trading business of gold and gold jewellery from January 2021. However, the operation with respect to spices and pan masala of the company is on hold temporarily since the countrywide lockdown was imposed on March 25, 2020. Currently, the company is expanding the storage capacity of its godown from 1000 metric tons to 1600 metric tons which will cost INR8.80 crore and the same will be financed through term loan of INR5.00 crore and balance of INR3.80 crore through promoters contribution. The company has already spent INR3.80 crore on the aforesaid expansion till January 31, 2021, funded by promoters' contribution and the expansion is estimated to be completed by March, 2021. Moreover, the financial closure for the debt portion of the expansion is yet to achieve. TIRUPATIBAALAJI FIBERRS: CARE Ups Rating on INR24.43cr Loan to B+ ----------------------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of Tirupatibaalaji Fiberrs Private Limited (TBFPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 24.43 CARE B+; Stable Revised from Facilities CARE B; Stable Short Term Bank Facilities 2.55 CARE A4 Reaffirmed Detailed Rationale & Key Rating Drivers The revision in the long-term rating assigned to the bank facilities of TBFPL factors in the growth in total operating income and profitability during FY21 (refers to period April 1 to March 31). The ratings continue to derive strength from the moderate operating cycle and financial risk profile of the company characterized by moderate overall gearing and debt coverage indicators. The ratings also continue to take comfort from the extensive experience of promoters in paper industry. The ratings however continue to remain constrained by highly competitive nature of paper industry and susceptibility of margins to volatility in raw material prices and foreign exchange fluctuation. Rating Sensitivities Positive Factors - Factors that could lead to positive rating action/upgrade: * Ability of the company to profitably scale-up its operations while maintaining its PBILDT margins above 10% * Further improvement in financial risk profile thus improving debt coverage indicators of the company Negative Factors - Factors that could lead to negative rating action/downgrade: * Elongation in collection and payable period thereby impacting liquidity position of the company * Any higher than envisaged debt funded capex impacting overall financial risk profile of the company Detailed description of the key rating drivers Key Rating Weaknesses * Highly competitive paper industry: The paper industry is highly fragmented with the presence of many organized and unorganized players leading to stiff competition amongst them. The demand in paper industry is largely derived from advertising, education, FMCG, retail, consumer durables and pharmaceutical sectors. The highly fragmented and competitive nature of the industry may have a bearing on overall profitability of the players. * Susceptibility of margins to volatility in raw material prices and foreign exchange fluctuation: The key raw material of TBFPL is waste- paper/scrap which constitutes 45% to 50% of total cost and approx. 33.57% (PY: 48.93%) of total raw material consumed was imported from U.S.A, European countries and South Africa and the remaining procured domestically, the prices of which remains volatile. Procurement of raw material in foreign currency which the company does not hedge and sales largely booked in domestic currency, the profitability margins of the company remain highly susceptible to changes in the raw material prices and foreign exchange fluctuation exposed to the fluctuation in exchange rates. The company reported forex loss of INR0.11 crore during FY21 (PY: Nil). Key Rating Strengths * Growth in total operating income and profitability during FY21: The total operating income of the company increased to INR86.02 crore in FY21 (PY: 56.38 crore) registering growth of approx. 53%. The growth is attributable towards enhanced capacity and increased market demand of kraft paper post covid. The company has shifted its focus from writing & printing paper to kraft paper now due to stiff competition and adverse impact of covid on paper industry, though Kraft paper yields lower margins compared to printing & writing paper. Further due to covid restrictions, import of wastepaper from outside India reduced to nearly 20% of total paper requirement of company from 40% earlier while domestically procured waste paper's availability is low and is relatively costlier than import paper. Though the profitability improved in absolute terms, but all of the above factors have a bearing on profitability margins. Hence PBILDT margin of TBFPL moderated to 6.88% in FY21 from 9.02% in FY20 due to significant increase in raw material cost and also due to increased proportion of trading sales commanding lower margin of 2 to 3%. During 9MFY22 (refers to period April 1 to December 31), TBFPL has achieved total operating income of INR91.43 crore. * Moderate financial risk profile: TBFPL's financial risk profile remains moderate with overall gearing of 0.93x as of March 31, 2021 (PY: 0.90x) and interest coverage of 2.34x in FY21 (PY: 2.04) on account of accumulation of profits thereby strengthening of net worth and further improved due to conversion of 8% convertible debentures into equity capital including security premium during the year FY21. TBFPL has utilized incremental unsecured loans from directors and covid loan along with cash accruals from business to meet the debt repayment obligations and has already paid INR4.13 crore till December 2021 out of scheduled repayment of INR4.54 crore for full year FY22. * Moderate operating cycle: TBFPL has renegotiated credit terms with its customers and now offers average credit period of 7 to 10 days (earlier 30 to 45 days) to its customers (mainly traders and distributors) and avails credit of 45 to 60 days from its suppliers. The working capital cycle of the company improved to 59 days in FY21 from 73 days in FY20 mainly on account of improved collection period from 72 days in FY20 to 63 days in FY21 and inventory holding of 56 days (PY: 73 days). The working capital requirement is met by fund- based limits of INR9.00 crore with elevated utilization levels above 95% for the trailing twelve months ending with December 31, 2021. * Extensive experience of the promoters: TBFPL managed by Mr. Naveen Agarwal and Mr. Pankaj Agarwal with extensive experience of over two decades in the industry of running paper mills and has also promoted companies such as Silvertoan Papers Limited, Bindlas Duplux Limited (rated CARE BB+; Stable/ CARE A4+; Issuer non cooperating) and Annapurna Imports. Liquidity analysis: Weak Liquidity is weak marked by high working capital utilization of around 95% apart from scheduled repayment obligations of INR4.54 crore against expected GCA of INR4.66 crore, out of which INR4.13 crore has already been paid during 9MFY22. The liquidity position of the company is partially supported by unsecured loans from directors and free cash and cash equivalents of INR0.84 crore as on December 31, 2021. With a gearing of 0.93 times as of March 31, 2021. TBFPL has some gearing headroom, to raise additional debt for future exigencies. Tirupatibaalaji Fiberrs Private Limited (TBFPL) was originally incorporated in 1995 as Balaji Cellulose Products Limited by Mr. Salekchand Agarwal. Subsequently in 2007, the company was taken over by members of 'Garg' family post which name of the company was changed to its Tirupati Balaji Fibres Ltd on April 17, 2007. Later in August 2011, the present promoters Mr. Naveen Agarwal, Mr. Pankaj Agarwal and Mr. Prashant Agarwal took over the management of the company. The company is engaged in manufacturing and trading of kraft paper with an installed capacity of 41,250 MTPA as on March 31, 2021 (PY: 33,000 MTPA) at its manufacturing facility located at Muzaffarnagar, Uttar Pradesh. Kraft Paper is used for many industrial and commercial applications. The material is used in packaging operations for packing, wrapping individual items, bundling and void fill. TULIP MARKETING: CARE Lowers Rating on INR10cr LT Loan to B+ ------------------------------------------------------------ CARE Ratings has revised the ratings on certain bank facilities of Tulip Marketing (TM), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 10.00 CARE B+; Stable; ISSUER NOT Facilities COOPERATING; Revised from CARE BB-; Stable and moved to ISSUER NOT COOPERATING category Detailed Rationale and key rating drivers CARE has been seeking information from TM to monitor the rating vide e-mail communications dated November 15, 2021, December 31, 2021, January 3, 2022, January 6, 2022, January 10, 2022, February 3, 2022 and February 25, 2022. However, despite repeated requests, TM 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 OE'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 rating(s). The ratings have been revised on account of non-availability of information regarding the business and financial performance of the company in FY21. Tulip Marketing (TM) is a partnership firm was established on May 2, 2013 by Mr. Bhavya Dave and Mr. Sadik Sayed. TM is primarily engaged in trading of mobile handsets and accessories in the retail market through to various stores spread across western suburb of Mumbai. TM is an authorized distributor of Karbon, Vivo India which covers area like Kandivali, Borivali and Dahisar, Micromax India covers area like Andheri, Goregaon and Jogeshwari.TM has its corporate office and warehouse located at Borivali, Mumbai spread over 700 sq. feet. VELLOCITY: CARE Reaffirms B+ Rating on INR15.50cr LT Loan --------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of Vellocity, as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank Facilities 15.50 CARE B+; Stable Reaffirmed Detailed Rationale & Key Rating Drivers The rating assigned to the bank facilities of Vellocity are primarily tempered by small scale and nascent stage of operations, losses reported during the last two years, highly leveraged capital structure and proprietorship nature of business constitution. The rating, however, derives strength from experienced promoter and healthy operating margins. Rating sensitivities Positive Factors - Factors that could lead to positive rating action/upgrade: * Improvement in overall gearing below 10x Negative Factors- Factors that could lead to negative rating action/downgrade: * Non-renewal of lease agreements after the lock-in period * Delay in infusion of funds by promoter Detailed description of the key rating drivers Key Rating Weaknesses * Risk of non-renewal of lease agreements after the lock-in period: Lease agreements of the mall have a rental tenure due to which there is a likelihood of tenants exiting out of the same if the mall does not get the desired response. Hence, there exists a risk of non-renewal of rent agreements or renegotiation of lease agreements at lower rentals. However, with the occupancy rate of 95% of the total leased area have tenure in the range of 20 years with a residual lock in of three years which to some extent mitigates the risk of non-renewal. * Small and nascent stage of operations with losses incurred in last two years: The firm is in the nascent stage of operations with operating track record of three years. On account of this scale of operations remained small measured by total operating income of INR1.25 Crore in FY21 viz a viz INR4.87 Crore in FY20. The property caters to entertainment companies and is currently occupied with 85% occupancy rate with rental income has highly concentrated. Apart from rental receipts from commercial space, the firm also generates revenue from bus transport services through three different routes across Vellore district and also rent from multiple residential apartments. The firm has reported cash loss of INR1.38 Crore in FY21 owing to impact of COVID – 19 and non-receipt of rental income. * Highly leveraged capital structure and weak debt coverage indicators: The capital structure of the firm remained highly leveraged marked by overall gearing of 26.34x as on March 31, 2021 (Prov.) owing to high in debt levels majorly comprising term loan availed for construction of mall coupled with withdrawal of capital by the promoter during the review period. The debt coverage indicators marked by TD/GCA stood negative at 16.50x in FY21(Prov.) owing to cash loss reported by the firm during the corresponding period. * Proprietorship nature of business constitution: Vellocity is a proprietorship nature of business wherein the inherent risk of withdrawal of capital by the proprietary at the time of their personal contingencies resulting in erosion of capital base leading to adverse effect on capital structure. However, the risks associated with proprietorship nature of the firm is outweighed by the significant experience of the promoter in the multiple sectors and their ability to bring in capital to support the operations. Key Rating Strengths * Experience promoter: Vellocity was established as a proprietorship firm in the year 2018 by Ms. S. Anusha who holds graduate in law has overall experience in different business sectors of around two decades. She started her career as a law consultant and runs an intercity bus transport service. Further in 2018, she started engage in business of leasing commercial space in the name Vellocity at the total leasable area of 37758 Sq.ft. Ms. S. Anusha gains support from her spouse Mr. V Selvam who have various business interests viz BPCL outlet services and hotel industry etc. He is Vice- President of one of the renowned higher educational institutions in India, viz Vellore institute of Technology, who is a son of Dr. G. Viswanathan founder of Vellore Institute of Technology. Further she also assisted with well qualified and professional management personnel. * Healthy operating profit margins: The PBILDT margin of the firm stood healthy at 41.77% in FY21 majorly due lower operating expenses as the mainline of business is involved in renting & leasing of freehold premises, however dropped from 51.77% in FY20. The operational expenses majorly involve maintenance service, power and fuel and employee cost. Liquidity: Stretched The liquidity position of the firm is stressed with relatively low monthly rental income vis-à-vis the debt servicing obligation and limited cushion available for meeting other expense. However, the debt servicing is supported by fund infusions in promoter's personal capacity. The timely infusion of funds by the promoter for servicing the debt obligation shall remain a key monitorable. Vellocity is a proprietorship concern established by Ms. S. Anusha in the year 2018. The concern engaged in leasing out space on medium term to long term commercial leasing arrangements in Vellore, Tamil Nadu. It is a commercial shopping cum multiplex screen mall, has a leasable area of 37758 sq.ft and commenced operations in the year 2018. Under the proprietorship of Ms. S. Anusha, there are businesses viz transport services, rental of residential properties, legal consultancy services apart from commercial space lease outs. ========= J A P A N ========= TOSHIBA CORP: Proxy Adviser Rejects Split Proposal Plan ------------------------------------------------------- Scott Deveau at Bloomberg News reports that Toshiba Corp.'s proposal to split into two companies has been dealt a blow after a prominent shareholder advisory firm came out against the plan. In a report dated March 9, Institutional Shareholder Services Inc. urged investors in the Japanese conglomerate to reject the proposal, Bloomberg relates. "The spin-off option offers upside to the status quo, but the associated execution risks do not allow for an inescapable conclusion that the split is superior to a privatization," ISS said in the report on March 8, Bloomberg relays. According to Bloomberg, the proxy adviser also went against a proposal from one of Toshiba's largest investors, 3D Investment Partners Pte, for the company to review other options, including the sale of the company. ISS described the proposal as "premature." The matters are set to be put to a shareholder vote on March 24, the report notes. Toshiba will continue to make every effort to explain its proposal to shareholders to gain their support, a spokeswoman said. Last month, Toshiba scrapped a proposal to divide into three listed companies, deciding to separate into two instead. The original plan faced stiff opposition from large shareholders including 3D. Instead, the company intends to spin off its devices business, which includes semiconductors, and list it, arguing a two-way split would be cheaper and smoother than the original plan, the report says. Toshiba will also sell a 55% stake in air-conditioning business Toshiba Carrier Corp. to its U.S. joint venture partner Carrier Global Corp. for about JPY100 billion, the company said at the time. Chief Executive Officer Satoshi Tsunakawa resigned earlier this month in the latest twist in a turbulent time for the company, recalls Bloomberg. His replacement, Taro Shimada, has vowed to push ahead with the breakup plan, with Toshiba positioning the change of leadership as a way to prepare for the split. Before he resigned, Mr. Tsunakawa said he opposed going private because it could result in the company losing orders from utilities and local governments and would force it to sell sensitive technology in areas such as nuclear, defense and cybersecurity, Bloomberg relays. Toshiba, once among Japan's most revered companies, has been in crisis mode for years due to repeated scandals and management missteps. It invented flash memory for computing, but had to sell control of its crown jewel semiconductor business to pay for a disastrous expansion in nuclear power, the report states. About Toshiba Corp. Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/-- manufactures and markets electrical and electronic products. The Company's products include digital products such as PCs and televisions, NAND flash memories, and system LSIs (large-scale integrated), as well as social infrastructures such as power generators, medical equipment, and home appliances. As reported in the Troubled Company Reporter-Asia Pacific on Nov. 18, 2021, S&P Global Ratings has placed its 'BB+' long-term issuer credit rating on Toshiba Corp. on CreditWatch with negative implications. At the same time, S&P affirmed its 'B' short-term issuer credit and commercial paper program ratings. =============== M A L A Y S I A =============== DOLOMITE CORPORATION: Court to Hear Wind-Up Petition on May 24 -------------------------------------------------------------- A petition to wind up the operations of Dolomite Corporation Berhad will be heard before the High Court of Kuala Lumpur on May 24, 2022. Maybank International Labuan Branch filed the petition against the company on Sept. 21, 2021. Dolomite Corporation is principally involved in property development, construction and sand mining activities. As reported in the Troubled Company Reporter-Asia Pacific on Oct. 6, 2021, Dolomite Corporation has been classified as an affected listed issuer under Practice Note 17 after it was unable to pay its debts as its liabilities have far exceeded its assets. The company has been classified as an affected listed issuer under Practice Note 17 after it was unable to pay its debts as its liabilities have far exceeded its assets. As of Dec. 31, 2020, the investment company, which is the parent of 14 subsidiaries has net liabilities of MYR59.57 million, The Star said. The PN17 classification followed the Judicial Management Order made on Sept. 23, 2021. HIBISCUS PETROLEUM: S&P Discontinues Preliminary 'B+' ICR --------------------------------------------------------- S&P Global Ratings discontinued the preliminary 'B+' issuer credit rating on Hibiscus Petroleum Bhd. At the same time, S&P discontinued the preliminary 'B+' issue credit rating on the proposed senior unsecured notes issued by Hibiscus Capital Ltd. and guaranteed by Hibiscus Petroleum. S&P discontinued the ratings because Hibiscus Petroleum completed its acquisition of a portfolio of oil and gas assets from Repsol S.A. on Jan. 24, 2022, and no longer intends to issue the notes. S&P discontinued the ratings at Hibiscus Petroleum's request. JERASIA CAPITAL: Court to Heart JM Order Application on April 21 ---------------------------------------------------------------- The Board of Directors of Jerasia Capital Bhd (JCB) on March 9 said that the application for Judicial Management Order for its three wholly owned subsidiaries have been fixed for hearing on April 21, 2022 at 9:00 a.m. As reported in the Troubled Company Reporter-Asia Pacific on March 8, 2022, Jerasia Capital said that three of its wholly owned subsidiaries have applied for Judicial Management Order (JM Order) to facilitate restructuring and regularize its finances. In a filing with Bursa Malaysia, JCB said Jerasia Fashion Sdn Bhd, Jerasia Apparel Sdn Bhd and Canteran Apparel Sdn Bhd have been operating under adverse financial and operational conditions since the Covid-19 pandemic, Sun Daily related. It said the JM Order would enable the involvement of an independent professional to facilitate the restructuring of Jerasia Group, with the assistance of the board of directors and management. About Jerasia Capital Jerasia Capital Berhad is an investment holding company which provides management consultancy services. The Company, through its subsidiaries, manufactures, exports, wholesales, and retails fashion garments and accessories. Jerasia Capital also provides haulage services. On Jan. 28, 2022, Jerasia Capital Bhd was classified as an affected listed issuer under Practice Note 17 (PN17) of the Main Market Listing Requirements (Main LR) of Bursa Malaysia Securities Berhad as the Company triggered the prescribed criteria pursuant to Paragraph 8.04 and Paragraph 2.1(a) of PN17 of the Main LR of Bursa Securities, where the shareholders' equity of the Company on a consolidated basis is 25% or less of the share capital (excluding treasury shares) of the Company and such shareholders' equity is less than MYR40 million. ===================== N E W Z E A L A N D ===================== ANNAPOORNA NZ: Creditors' Proofs of Debt Due April 18 ----------------------------------------------------- Creditors of Annapoorna NZ Holdings Limited, which is in voluntary liquidation, are required to file their proofs of debt by April 18, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on March 9, 2022. The company's liquidator can be reached at: Pritesh Patel Patel & Co 344 Great South Road Papatoetoe, Auckland 2215 DAISY 2018: Creditors' Proofs of Debt Due April 8 ------------------------------------------------- Creditors of Daisy 2018 Limited (trading as The Donut Dispensary) are required to file their proofs of debt by April 8, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on March 2, 2022. The company's liquidator can be reached at: Brenton Hunt PO Box 13400 City East, Christchurch 8141 HALL & SONS: Creditors' Proofs of Debt Due April 19 --------------------------------------------------- Creditors of Hall & Sons Limited, which is in voluntary liquidation, are required to file their proofs of debt by April 19, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on March 8, 2022. The company's liquidator can be reached at: Geoff Brown Rodgers Reidy (NZ) Limited PO Box 39090 Harewood, Christchurch 8545 HEWITT BUILDING: Creditors' Proofs of Debt Due April 10 ------------------------------------------------------- Creditors of Hewitt Building Limited are required to file their proofs of debt by April 10, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on March 4, 2022. The company's liquidators can be reached at: Damien Grant Greg Sherriff Waterstone Insolvency PO Box 352, Auckland 1140 TAKAHE CONSTRUCTION: Creditors' Proofs of Debt Due April 7 ---------------------------------------------------------- Creditors of Takahe Construction Limited, which is in voluntary liquidation, are required to file their proofs of debt by April 7, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on March 7, 2022. The company's liquidator can be reached at: Brenton Hunt PO Box 13400 City East, Christchurch 8141 ===================== P H I L I P P I N E S ===================== HANJIN HEAVY: Former Hanjin Subic Bay Shipyard Sold to Cerberus --------------------------------------------------------------- The Maritime Executive reports that the former U.S. naval base at Subic Bay in the Philippines, which had been converted into a commercial shipyard in the 1990s, is set to be sold to U.S. equity investment firm Cerberus Management Capital with Agila Naval becoming operators of the sprawling facility. The newly appointed chairman and administrator of the Subic Bay Metropolitan Authority announced the agreement during a ceremony taking office on March 7 saying that Cerberus was given the go-ahead to assume the operation on February 25. Philippine's officials had been leading the negotiations with competing shipyards and investors, the report says. The commercial shipyard operated by South Korea's Hanjin Heavy Industries ceased operations in 2019 after defaulting on a total of $1.3 billion in outstanding loans, including $400 million due to Philippine banks and $900 million in loans from South Korean lenders, The Maritime Executive recalls. The shipyard, which at its peak had employed about 30,000 workers, went into court receivership. In 2019, at least eight foreign companies reported expressed interest in the shipyard to officials in the Philippines, the report notes. Among the rumored bidders were two Chinese firms, but the Philippines reportedly wanted to keep the yard out of Chinese control. Australian shipyard operator Austal had reportedly emerged as the leading bidder, but fell out and is no longer a tenant at the facility. By the summer of 2021, the Subic Bay Metropolitan Authority was reporting that a U.S. firm had been selected. According to The Maritime Executive, the Philippine Navy reported that it signed a terms sheet in 2021 for the North Yard, which covers about 250 acres of the site that is in total more than 700 acres. The Subic Bay Metropolitan Authority reports the Philippine Navy will start ramping up its operations with included docks and general ship operations as well as shore support operations. Media reports from the Philippines indicate that Cerberus has agreed to pay approximately $300 million which will be used to settle the debts of the five Philippine banks, The Maritime Executive relays. Hanjin will hand over the 50-year lease of the facility to Cerberus. The Maritime Executive says the South Yard will be restarted as a commercial shipyard with Agila seeking tenants. They expect to lease portions of the facility to international tenants. During the first phase of resuming operations, they expect as many as 3,000 jobs will be created at the facility. Other sections of the former U.S. Naval base were turned into an economic development zone operated by the Philippines. Working with the U.S. International Development Finance Corporation, Agila has already issued a scope of work assessment calling for upgrading buildings at the site to modern operational and safety standards. This includes providing adequate facilities and procedures to manage ship waste and ballast water and response capabilities for potential spills of hazardous materials. They are also planning a broad range of infrastructure improvements at the yard facilities, The Maritime Executive notes. About Hanjin Shipping Hanjin Shipping Co., Ltd., is mainly engaged in the transportation business through containerships, transportation business through bulk carriers and terminal operation business. It is a stock-listed corporation with a total of 245,269,947 issued shares (common shares, KRW 5000 per share) and paid-in capital totaling KRW 1,226,349,735,000. Of these shares 33.23% is owned by Korean Air Lines Co., Ltd., 3.08% by Debtor and 0.34% by employee shareholders' association. The Company operates approximately 60 regular lines worldwide, with 140 container or bulk vessels transporting over 100 million tons of cargo per year. It also operates 13 terminals specialized for containers, two distribution centers and six Off Dock Container Yards in major ports and inland areas around the world. The Company is a member of "CKYHE," a global shipping conference and also a partner of "The Alliance," another global shipping conference to be launched in April 2017. Hanjin Shipping listed total current liabilities of KRW 6,028,543 million and total current assets of KRW 6,624,326 million as of June 30, 2016. As a result of the severe lack of liquidity, Hanjin applied to the Seoul Central District Court 6th Bench of Bankruptcy Division for the commencement of rehabilitation under the Debtor Rehabilitation and Bankruptcy Act on Aug. 31, 2016. On the same day, it requested and was granted a general injunction and the preservation of disposition of the Company's assets. The Korean Court's decision to commence the rehabilitation was made on Sept. 1, 2016. Tai-Soo Suk was appointed as the Debtor's custodian. On Sept. 2, 2016, Hanjin Shipping Co. filed in the U.S. a voluntary petition under Chapter 15 of the Bankruptcy Code. The Chapter 15 case is pending in New Jersey (Bankr. D.N.J. Case No. 16-27041) before Judge John K. Sherwood. Cole Schotz P.C. serves as counsel to Tai-Soo Suk, the Chapter 15 petitioner and the duly appointed foreign representative of Hanjin Shipping. ================= S I N G A P O R E ================= MICROSOFT SINGAPORE: Creditors' Proofs of Debt Due April 10 ----------------------------------------------------------- Creditors of Microsoft Singapore Investments Pte Ltd, which is in voluntary liquidation, are required to file their proofs of debt by April 10, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on March 3, 2022. The company's liquidator can be reached at: Aaron Loh Cheng Lee EY Corporate Advisors Pte Ltd c/o One Raffles Quay North Tower 18th Floor Singapore 048583 ================= S R I L A N K A ================= SRI LANKA: Inches Closer to IMF Aid Option After Rupee Plunge ------------------------------------------------------------- Bloomberg News reports that Sri Lanka's painful decision to effectively devalue its currency this week could pave the way for the island nation to get help from the International Monetary Fund as a $1 billion debt payment looms in four months. Bloomberg relates that the country's dollar bonds due July 2022 gained 1.6% on March 9 to halt five days of losses, while the rupee advanced 0.3% after plunging as much as 12% -- the most in more than four decades -- in reaction to the central bank's announcement that it was letting the currency float as international reserves dwindle. According to Bloomberg, tightening global credit conditions brought about by a hawkish Federal Reserve as well as higher fuel costs exacerbated by the war in Ukraine mean a more challenging environment for Sri Lanka. The war could also further hit tourism revenues as almost a quarter of all tourist arrivals into Sri Lanka this year were from Russia and Ukraine, while Russia was the third-biggest buyer of Sri Lankan tea over the past two years, the report says. "The policy that Sri Lanka has taken aligns with some of the recommendations suggested by the IMF," the report quotes Wang Ting Seah, country risk analyst at Fitch Solutions in Singapore, as saying. Negotiations with the lender will be easier "if Sri Lanka chooses to undergo an IMF program," he said. The South Asian nation of about 22 million people has shunned a bailout from the IMF because of the strict conditions involved, Bloomberg notes. The Washington-based lender said last week that Sri Lanka needs to urgently adopt a "credible and coherent strategy" to cope with its foreign-exchange crisis. Foreign currency reserves shrank to just $2.31 billion last month, the report relays. Bloomberg says the rupee had been trading in a narrow range of 201-203 per dollar since October as the central bank sought to rein in the fastest-growing consumer prices in Asia. Monetary authorities also raised interest rates for a second meeting last week. "External help is inevitable," the report quotes Carl Wong, head of fixed income at Avenue Asset Management in Hong Kong, as saying. "IMF will be the ultimate solution and this is another step closer to that," he said, referring to the greater flexibility in the exchange rate. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman, Editors. Copyright 2022. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. *** End of Transmission ***