/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/230126.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, January 26, 2023, Vol. 26, No. 20 Headlines A U S T R A L I A BALCROSS PTY: Second Creditors' Meeting Set for Feb. 3 DIGITAL SURGE: Saved After AUD1.25 Million Loan From Creditors HOUSE OF WINE: Second Creditors' Meeting Set for Feb. 2 METHOD CONSTRUCTIONS: Second Creditors' Meeting Set for Feb. 2 POLITIS CENTRAL: Second Creditors' Meeting Set for Feb. 2 WA HOUSING: Building Firm Collapses Into Liquidation XING GROUP: Second Creditors' Meeting Set for Feb. 2 C H I N A FARADAY FUTURE: Plans to Relocate Future China HQ to Huanggang ORIGIN AGRITECH: Delays Filing of Annual Report QUTOUTIAO INC: Receives Non-Compliance Notice From Nasdaq QUTOUTIAO INC: Shandong Haoxin Replaces PwC as Auditor ZHONGYU ENERGY: Fitch Affirms Then Withdraws 'B+' LongTerm IDR I N D I A ACB LIMITED: Ind-Ra Cuts Long Term Issuer Rating to 'C' ADANI GROUP: Hindenburg Held Short Positions, Cites High Debt AGARWALLA TIMBERS: Ind-Ra Moves BB Rating to Non-Cooperating AGRO FRESH: CRISIL Keeps D Debt Ratings in Not Cooperating ANIL CORNER: CRISIL Moves B Debt Rating to Not Cooperating ANU TECH: Ind-Ra Moves B Issuer Rating to Non-Cooperating BABA NAGA: CRISIL Keeps D Debt Ratings in Not Cooperating BALASORE MARINE: CRISIL Lowers Rating on INR12cr Loan to D CENTENARY ARCADES: CRISIL Keeps D Debt Rating in Not Cooperating CHANDRA ENGINEERS: CRISIL Keeps D Debt Ratings in Not Cooperating CHHAJED FOODS: CRISIL Keeps D Debt Ratings in Not Cooperating COARSER SPINNING: CRISIL Assigns B+ Rating to INR53.75cr Loan CORROSION ENGINEERS: CRISIL Keeps D Ratings in Not Cooperating DEEPIKA INFRATECH: CRISIL Keeps D Debt Ratings in Not Cooperating DESWAL HATCHERIES: CRISIL Hikes Rating on INR7.50cr Loan to B DOLBIS GRANITE: CRISIL Keeps D Debt Ratings in Not Cooperating ELECTRA ACCUMULATORS: CRISIL Keeps D Rating in Not Cooperating ELECTRA GLOBAL: CRISIL Keeps D Debt Ratings in Not Cooperating JAYPEE INFRATECH: Consortium Lenders Assign Their Debt to NARCL KIRAN INDUSTRIES: Ind-Ra Affirms BB+ Long Term Issuer Rating KISSAN HATCHERIES: CRISIL Hikes Rating on INR12cr Loan to B LEBEN LABORATORIES: CRISIL Withdraws B Rating on INR7cr Loan MOHAN MOTOR: CRISIL Keeps D Debt Rating in Not Cooperating PADAM CARS: CRISIL Lowers Rating on INR30cr Cash Loan to D PUNEET AUTOMOBILES: Ind-Ra Withdraws BB Long Term Issuer Rating RAJURI STEELS: Ind-Ra Assigns BB+ Long Term Issuer Rating RICON INDUSTRIES: Ind-Ra Moves BB Issuer Rating to Non-Cooperating S A MULLA: CRISIL Keeps D Debt Ratings in Not Cooperating SATSANGI SAKET: CRISIL Keeps C Debt Ratings in Not Cooperating SENAPATI MOTORS: CRISIL Keeps D Debt Rating in Not Cooperating SINGH CYCLE: CRISIL Keeps D Debt Ratings in Not Cooperating SKATE TRADES: CRISIL Keeps D Debt Rating in Not Cooperating STAR ORGANIC: CRISIL Keeps D Debt Ratings in Not Cooperating SUN ARK: CRISIL Keeps D Debt Ratings in Not Cooperating Category THERMOSOL GLASS: CRISIL Keeps D Debt Ratings in Not Cooperating ULTRA TRUST: CRISIL Keeps D Debt Rating in Not Cooperating VBS TEXTILES: CRISIL Withdraws B+ Rating on INR43cr Term Loan VENKATA SRINIVASA: CRISIL Withdraws B Rating on INR8.4cr Loan VENUS GARMENTS: CRISIL Keeps D Debt Ratings in Not Cooperating [*] INDIA: Centre Looking at Decriminalising Some IBC Offences I N D O N E S I A CIPUTRA DEVELOPMENT: Fitch Ups LT IDR to 'BB-', Outlook Stable N E W Z E A L A N D AUTHENTIC BEVERAGE: Creditors' Proofs of Debt Due on March 1 CITY & SUBURB: Court to Hear Wind-Up Petition on Feb. 7 PROVEN CONCEPTS: Creditors' Proofs of Debt Due on Feb. 20 Q CARD TRUST: Fitch Affirms 'Bsf' Rating on Class F Notes SKY STONE: Court to Hear Wind-Up Petition on Feb. 24 STREAMLAND TECHNOLOGY: Court to Hear Wind-Up Petition on March 31 S I N G A P O R E ERC PRIME: Creditors' Proofs of Debt Due on Feb. 24 KIAUW HIN: Creditors' Proofs of Debt Due on March 1 NEW MILLENIUM: Court to Hear Wind-Up Petition on Feb. 10 XYPHER PTE: Court to Hear Wind-Up Petition on Feb. 10 S R I L A N K A SRI LANKA: China Offers Debt Moratorium; IMF Help Still in Doubt - - - - - ================= A U S T R A L I A ================= BALCROSS PTY: Second Creditors' Meeting Set for Feb. 3 ------------------------------------------------------ A second meeting of creditors in the proceedings of Balcross Pty Ltd has been set for Feb. 3, 2023 at 10:00 a.m. at the offices of Rodgers Reidy at Level 11, 385 Bourke Street in Melbourne. 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 Feb. 1, 2023 at 4:00 p.m. Brent Leigh Morgan and Neil Stewart McLean of Rodgers Reidy were appointed as administrators of the company on Dec. 19, 2022. DIGITAL SURGE: Saved After AUD1.25 Million Loan From Creditors -------------------------------------------------------------- Guardian Australia reports that Digital Surge will continue to operate after creditors agreed to a long-term plan from administrators keep the business going in an attempt to recover from the global collapse of FTX. Digital Surge went into administration in December last year as a result of the company having transferred AUD33 million worth of its assets to global platform FTX just two weeks before that company's spectacular collapse in November. In a report released last week by administrators KordaMentha - which is also handling the Australian administration of FTX - it was revealed Digital Surge had 22,545 customers with more than AUD0.01 cent in their account at the time the company went into administration, Guardian Australia discloses. Some of the self-managed superfunds listed as creditors for the business had between AUD140,000 and AUD233,000 invested on the platform. At the second meeting of creditors, which ran over four hours in Brisbane on Jan. 24, creditors ultimately agreed to a plan to keep Digital Surge operating, and pay back most customers what they are owed over the next five years, according to Guardian Australia. Guardian Australia relates that the proposal, from Digico and Digital Surge directors Daniel Ritter and Joshua Lehman, will see Digico loan AUD1.25 million to Digital Surge to keep the company running. Customers with under AUD250 in their digital wallets will be repaid in full, while the remainder will receive 55% of their balance in the next few months, the report says. Customers will be paid in cryptocurrency or regular currency depending on how much they had of each. The rest will be paid back over the next five years in regular currency out of any quarterly profits Digital Surge makes. Any funds obtained from FTX's administration process will also be distributed to Digital Surge creditors from the administrators. All employees will retain employment with entitlements preserved, Guardian Australia adds. The administrators had recommended this option as it allowed the company to keep operating, and will result in a better return of funds for the creditors. According to Guardian Australia, the administration report reveals that between FTX going into bankruptcy on November 11, 2022, and Digital Surge's platform being suspended, AUD6.5 million was withdrawn from Digital Surge's platform, including more than AUD31,000 by five employees. While the administrators found that the directors had not breached any of their duties, questions were raised about the actions of one employee, Guardian Australia notes. The administrators found that an employee or someone acting on their behalf for their self-managed super fund, withdrew AUD1.6 million-worth in Australian dollars and bitcoin. Guardian Australia relates that the administrators said the unnamed employee confirmed he was aware that Digital Surge had exposure to FTX. They argued that the employee received a direct benefit over other creditors through the withdrawal based on that information, and it had a "significant impact" on the company's ability to repay customers in full. A lawyer for the employee told administrators that he was acting in good faith, and knowing that Digital Surge had exposure to FTX was not enough to infer that the employee had reason to suspect Digital Surge would become insolvent. The administrators disagreed. On why Digital Surge signed up with FTX just weeks before the company's collapse, the creditors report reveals the directors held the view FTX was reputable due to their personal experience with using the platform, the venture capital firms behind FTX, the company's marketing, and because FTX held an Australian Financial Services Licence (AFSL), Guardian Australia relays. Guardian Australia revealed last year that the regulator, the Australian Securities and Investment Commission, did not assess FTX's suitability to hold the licence at the time it acquired the licence when taking over another company. The company's reasoning for transferring such a large amount to FTX at the time was due to the lower transaction fees it would offer for customers, the report notes. FTX's disgraced chief executive, Sam Bankman-Fried, has pleaded not guilty to criminal charges that he defrauded investors and is currently at his parents' home in California on AUD250 million bail. About Digital Surge Digital Surge is a cryptocurrency trading company. It provides trading and exchange service for Bitcoin. It offers to sells Bitcoin with fiat currencies to traders, investors, and individuals. It also provides bill payment service in Austria using Bitcoin. David Johnstone, Scott Langdon and John Mouawad of KordaMentha were appointed as administrators of the company on Dec. 8, 2022. HOUSE OF WINE: Second Creditors' Meeting Set for Feb. 2 ------------------------------------------------------- A second meeting of creditors in the proceedings of The House of Wine & Food Pty Ltd has been set for Feb. 2, 2023 at 11:00 a.m. at the offices of Jirsch Sutherland at Level 30, 140 William Street in Melbourne and via Zoom meeting. 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 Feb. 1, 2023 at 11:00 p.m. Malcolm Kimbal Howell of Jirsch Sutherland was appointed as administrator of the company on Nov. 29, 2022. METHOD CONSTRUCTIONS: Second Creditors' Meeting Set for Feb. 2 -------------------------------------------------------------- A second meeting of creditors in the proceedings of Method Constructions Australia Pty Ltd has been set for Feb. 2, 2023 at 2:00 p.m. at via online meeting 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 Feb. 1, 2023 at 4:00 p.m. Brent Leigh Morgan and Neil Stewart McLean of Rodgers Reidy were appointed as administrators of the company on Dec. 19, 2022. POLITIS CENTRAL: Second Creditors' Meeting Set for Feb. 2 --------------------------------------------------------- A second meeting of creditors in the proceedings of Politis Central Services Group Pty Ltd has been set for Feb. 2, 2023 at 10:00 a.m. at the offices of Pitcher Partners Perth at Level 11, 12 The Esplanade in Perth and via virtual meeting technology. 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 Feb. 1, 2023 at 12:00 p.m. Michael Oscar Basedow of Pitcher Partners Advisory was appointed as administrator of the company on Oct. 21, 2022. WA HOUSING: Building Firm Collapses Into Liquidation ---------------------------------------------------- News.com.au reports that two more construction companies in Western Australia have gone under due to labour shortages and increasing construction costs. WA Housing Group, founded in 2019 and focused on custom builds and remodelling, was forced into liquidation on December 7, while Individual Developments WA (IDWA), which had prior agreements with the Department of Housing and Communities, has also collapsed, news.com.au relates. WA Housing group reportedly owes around AUD1 million to crediors and has 13 unfinished projects. Liquidator Mathieu Tribut, from GTS Advisory, told The West Australian that both companies ran into trouble as constuction costs rose while they were tied to fixed-term contracts, news.com.au relays. "The reason (WA Housing Group) ceased trading is because they were, in my view, trading whilst insolvent and they were incurring losses every month so they had no choice but to close down the door," the report quotes Mr. Tribut as saying. "They took a bank loan, everyone lost, even themselves." According to news.com.au, Individual Developments attempted to renegotiate a contract with the Department of Housing and Communities, but a compromise on the new price could not be reached. The company was contracted by the state Government to build a AUD2.4 million social housing development. That project was practically completed in December 2021 but still requires some work, the report says. A WA Government spokesman said the Department of Communities had been in touch with IDWA and will work with the State-Wide Builders Panel to reassign these properties and complete them. "Prior to being advised of the appointment of liquidators, the Department has been in regular communication with IDWA regarding progressing their active projects and the documentation required to substantiate their claim under the builder support package," news.com.au quotes the spokesman as saying. "The State Government works to support the industry and works closely with contracted residential builders in the current construction market while ensuring sensible and appropriate expenditure of taxpayer funds." XING GROUP: Second Creditors' Meeting Set for Feb. 2 ---------------------------------------------------- A second meeting of creditors in the proceedings of Xing Group Holdings Pty Ltd has been set for Feb. 2, 2023 at 11:00 a.m. at the offices of Jirsch Sutherland at Level 30, 140 William Street in Melbourne and via Zoom meeting. 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 Feb. 2, 2023 at 5:00 p.m. Bill Karageozis of Mcleods Accounting was appointed as administrator of the company on Dec. 19, 2022. ========= C H I N A ========= FARADAY FUTURE: Plans to Relocate Future China HQ to Huanggang -------------------------------------------------------------- Faraday Future Intelligent Electric Inc. announced that the company has signed an Amended and Restated Shareholder Agreement with FF Top LLC, the wholly owned subsidiary of FF Global Partners LLC. The Company and the China Huanggang Government have also reached a non-binding Cooperation Framework Agreement for promoting its US-China dual-home market strategy. The newly signed Shareholder Agreement solidifies FF Top as an important shareholder with 1:10 super voting rights, subject to shareholder approval, and 1:20 super voting rights when FF's market cap reaches $3 billion, also subject to shareholder approval. FF Top will also have the right to nominate four FF Top designees among seven board seats on the terms and conditions set forth in the Shareholder Agreement, which would provide FF Fop with control of the FF board of directors together with certain financing approval rights. The appointment or nomination for election to the FF Board of any FF Top designee shall be subject to the prior reasonable verification and/or reasonable approval of the Nominating and Corporate Governance Committee of the FF Board subject to certain criteria (and no other verifications or approvals). FF Top has informed the Company that the additional proposals in the Shareholder Agreement are expected to be submitted to shareholders for approval. According to the Framework Agreement with the City of Huanggang, FF intends to relocate its future FF China Headquarters there which will support its US-China dual home market and US-China Dual DNA strategy. In accordance with the Framework Agreement, and in furthering complementary advantages, mutual benefit, and common development, both parties are expected to contribute their respective advantages in investment, scientific and technological innovation, industrial transformation, location, and policy. Huanggang is expected to actively assist FF with the industrial layout in Huanggang City, deployment of relevant resources, while providing support for FF's business ventures in Huanggang City, including but not limited to financial and policy support. Faraday Future intends to relocate its FF China headquarters in Huanggang City, while maintaining its global headquarters in Los Angeles, California. The China headquarters is expected to be jointly funded by the Huanggang Government guide fund, industrial fund, and FF. The Framework Agreement was signed in Q3 of 2022. "I am very grateful to the FF global partners for their help during the most difficult period of the company in the past, and I also hope to continue to receive help from FFGP in future company financing and other aspects," said Chen Xuefeng, the Global CEO of FF. FF expects to start production of a saleable FF 91 Futurist at the end of March 2023, coming off the assembly line in early April, with deliveries before the end of April. The Company has completed manufacturing milestone #6 of FF 91 Futurist, the completion of construction and equipment installation in vehicle assembly areas. This marks six of the seven milestones (the 7th milestone being SOP) to mark its manufacturing achievements towards the start of production of the FF 91 Futurist. In addition, the FF 91 Futurist has also completed significant upgrades of systems and core components from both the vehicle, and I.A.I area the advanced core, which stands for Internet, Autonomous Driving, and Intelligence. About Faraday Future Gardena, CA-based Faraday Future -- www.ff.com -- is a luxury electric vehicle company. The Company has pioneered numerous innovations relating to its products, technology, business model, and user ecosystem since inception in 2014. Faraday Future aims to perpetually improve the way people move by creating a forward-thinking mobility ecosystem that integrates clean energy, AI, the Internet. Faraday Future reported a net loss of $516.50 million for the year ended Dec. 31, 2021, compared to a net loss of $147.08 million for the year ended Dec. 31, 2020. Los Angeles, California-based PricewaterhouseCoopers LLP, the Company's auditor since 2018, issued a "going concern" qualification in its report dated May 13, 2022, citing that the Company has suffered recurring losses from operations and has cash outflows from operating activities that raise substantial doubt about its ability to continue as a going concern. ORIGIN AGRITECH: Delays Filing of Annual Report ----------------------------------------------- Origin Agritech Limited filed a Form 12b-25 with the Securities and Exchange Commission regarding the delay in the filing of its Annual Report on Form 20-F for the year ended Sept. 30, 2022. The Company said the verification and review of the information required to be presented in the Form 20-F has required additional time rendering timely filing of the Form 20-F impracticable without undue hardship and expense to the Company. About Origin Agritech Headquartered in Beijing, China, Origin Agritech Limited, along with its subsidiaries, is focused on agricultural biotechnology and an agricultural oriented e-commerce platform, operating in the PRC. The Company's seed research and development activities specialize in crop seed breeding and genetic improvement. The e-commerce activities will focus on delivering agricultural products to farmers in China via online and mobile ordering and tracking the source of the agricultural products via blockchain technologies. Origin Agritech reported a net loss of RMB127.08 million for the year ended Sept. 30, 2021, compared to a net loss of RMB102.84 million for the year ended Sept. 30, 2020. As of March 31, 2022, the Company had RMB93.86 million in total assets, RMB280.01 million in total liabilities, and a total deficit of RMB186.15 million. Lakewood, Colorado-based B F Borgers CPA PC, the Company's auditor since 2020, issued a "going concern" qualification in its report dated Feb. 4, 2022, citing that the Company incurred recurring losses from operations, has net current liabilities and an accumulated deficit that raise substantial doubt about its ability to continue as a going concern. QUTOUTIAO INC: Receives Non-Compliance Notice From Nasdaq --------------------------------------------------------- Qutoutiao Inc. announced it has received a written notification from the staff of the Listing Qualifications Department of The Nasdaq Stock Market LLC dated Jan. 13, 2023, indicating that the Company is not currently in compliance with Nasdaq's Listing Rules for continued listing due to the Company's failure to file an interim balance sheet and income statement as of the end of its second quarter ended June 30, 2022 on Form 6-K with the Securities and Exchange Commission. Pursuant to Nasdaq Listing Rule 5250(c)(2), the Company was required to file its Interim Financials no later than six months following the end of its second quarter ended June 30, 2022, or Dec. 31, 2022. The Company has not yet filed the required Interim Financials. The Company is working diligently on its plan to regain compliance and intends to comply with the time periods afforded in the Notice. This notice received from Nasdaq has no immediate effect on the listing or trading of the Company's shares. Nasdaq has provided the Company with 60 calendar days to submit a plan to regain compliance. If Nasdaq accepts the Company's plan, then Nasdaq may grant the Company up to 180 days from the prescribed due date for the filing of its Interim Financials, or until July 3, 2023, to regain compliance. As previously announced, the Company also received two separate notices from Nasdaq, including a notice indicating the Company's deficiencies in meeting the continued listing requirement on minimum Market Value of Publicly Held Shares of US$15,000,000 on Sept. 13, 2022, and a notice indicating the Company's deficiencies in meeting the continued listing requirement of minimum bid price of US$1.00 per share of the closing bid price for a period of 30 consecutive business days on Sept. 26, 2022. About Qutoutiao Inc. Qutoutiao Inc. -- https://ir.qutoutiao.net -- operates a mobile content platform in China with a mission to bring fun and value to its users. The eponymous mobile application, Qutoutiao, meaning "fun headlines" in Chinese, applies artificial intelligence-based algorithms to deliver customized feeds of articles and short videos to users based on their unique profiles, interests and behaviors. Qutoutiao has attracted a large group of users, many of whom are from lower-tier cities in China. Qutoutiao reported a net loss attributable to the Company of RMB1.24 billion in 2021, a net loss attributable to the Company of RMB1.10 billion in 2020, and a net loss attributable to the Company of RMB2.68 billion in 2019. Shanghai, the People's Republic of China-based PricewaterhouseCoopers Zhong Tian LLP, the Company's auditor since 2017, issued a "going concern" qualification in its report dated May 2, 2022, citing that the Company's accumulated and recurring losses from operations, net cash used in operating activities, negative working capital as of Dec. 31, 2021, and uncertainties on the repayment of a convertible loan raise substantial doubt about the Company's ability to continue as a going concern. QUTOUTIAO INC: Shandong Haoxin Replaces PwC as Auditor ------------------------------------------------------ Qutoutiao Inc. announced it dismissed PricewaterhouseCoopers Zhong Tian LLP on Jan. 3, 2023 and engaged Shandong Haoxin Certified Public Accountants Co., Ltd. as its independent registered public accounting firm, effective Jan. 17, 2023. The change of the Company's independent auditor was made after careful consideration and was approved by the Audit Committee and the Board of Directors of the Company. The Company said its decision to change its auditor was not the result of any disagreement between the Company and PwC on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure. The Company is working closely with PwC and Shandong Haoxin to ensure a seamless transition. The Board of Directors of the Company would like to express its sincere gratitude to PwC for its professionalism and quality of services rendered to the Company over the past few years. About Qutoutiao Inc. Qutoutiao Inc. -- https://ir.qutoutiao.net -- operates a mobile content platform in China with a mission to bring fun and value to its users. The eponymous mobile application, Qutoutiao, meaning "fun headlines" in Chinese, applies artificial intelligence-based algorithms to deliver customized feeds of articles and short videos to users based on their unique profiles, interests and behaviors. Qutoutiao has attracted a large group of users, many of whom are from lower-tier cities in China. Qutoutiao reported a net loss attributable to the Company of RMB1.24 billion in 2021, a net loss attributable to the Company of RMB1.10 billion in 2020, and a net loss attributable to the Company of RMB2.68 billion in 2019. Shanghai, the People's Republic of China-based PricewaterhouseCoopers Zhong Tian LLP, the Company's auditor since 2017, issued a "going concern" qualification in its report dated May 2, 2022, citing that the Company's accumulated and recurring losses from operations, net cash used in operating activities, negative working capital as of Dec. 31, 2021, and uncertainties on the repayment of a convertible loan raise substantial doubt about the Company's ability to continue as a going concern. ZHONGYU ENERGY: Fitch Affirms Then Withdraws 'B+' LongTerm IDR -------------------------------------------------------------- Fitch Ratings has revised China-based Zhongyu Energy Holdings Limited's Outlook to Stable from Positive and affirmed its 'B+' Long-Term Issuer Default Rating. Fitch has simultaneously withdrawn the rating. The Outlook revision reflects its expectation that Zhongyu's Fitch-defined EBITDA net leverage may be sustained above 5.5x, a positive rating sensitivity, over the next four years, driven by slower profit growth from the value-added service (VAS) and smart-energy business segment. Fitch has lowered its forecasts materially for the non-gas business segment's profit growth over the next four years, as the company's top-line and profitability underperformance in 1H22 suggests it faces challenges in achieving the targets it previously set. Fitch has chosen to withdraw the rating for commercial reasons. KEY RATING DRIVERS Non-Gas Business Growth Below Expectation: The gross profit of Zhongyu's non-gas smart-energy and VAS business declined by 2% yoy in 1H22, worse than Fitch's expectation of a 10% rise. The gross profit margin (GPM) for the smart-energy business was 32% in 1H22, much lower than its estimate of 70% due to slow ramp-up of solar power projects. VAS revenue dropped by 31% yoy in 1H22 as new connections remained weak. Fitch now expects the company to miss its smart-energy GPM target of 70%-90%, its previous guidance to Fitch, in 2022-2025 as the ramp-up of solar power plants has been much slower than expected, while other non-gas businesses such as the provision of integrated energy, heating and cooling services have lower margins. Fitch has also lowered its forecast for VAS revenue growth due to uncertainties in the domestic property market. Difficulty in Deleveraging: Fitch expects Zhongyu's Fitch-defined EBITDA net leverage to reach 5.5x-5.8x in 2022-2025 from 4.8x in 2021 after incorporating its revised assumptions for the smart-energy and VAS business. Fitch expects capex to gradually decline on lower investment in rural coal-to-gas projects, although this will depend on the pace of capacity addition for smart energy. Slide in New Connection Revenue: Fitch estimates a decline of 28% and 7% in new connections during 2022 and 2023, respectively, as China's property market remains weak. The decline in connections will be a drag on Zhongyu's EBITDA, and the segment contribution will drop to below 20% by 2025 from 40% in 2021. On the other hand, Zhongyu's earnings visibility will improve over the medium term on the lower profit contribution from one-off connections. Improved Dollar Margin: Zhongyu's dollar margin improved by CNY0.015 yoy to CNY0.55/cubic metre in 1H22, while most rated peers suffered a margin decline due to high gas costs. Zhongyu has set up a centralised gas procurement centre and the completion of its gas pipeline network has allowed it to increase the procurement of lower-cost piped gas from Chinese oil majors and other sources. The gas is cheaper than the spot price of liquefied natural gas (LNG). Fitch estimates Zhongyu's yoy dollar margin improvement continued in 2H22. Soft natural gas sales consumption in China during 2022 alleviated gas supply tightness and enabled city-gas distributors to procure a higher proportion of lower-cost contracted gas from oil majors. Spot LNG prices during November and December 2022 fell 11.5% yoy, and the peak season city-gate prices charged by oil majors only increased by 10% yoy. As a result, Fitch expects Chinese city-gas distributors' cost pass-through to be smoother in the 2022/2023 winter season. Slower Gas Sales Volume Growth: Fitch estimates Zhongyu's retail gas sales volume growth moderated to 4% in 2022, from 16% in 2021. China's gas sales growth slowed in 2022 due to weaker economic growth and higher gas costs. However, Fitch expects gas sales growth to recover in 2023 on the removal of pandemic control measures. Fitch expects Zhongyu's gas sales volume to achieve a CAGR of 8% in 2022-2025. Rising Interest Rates: Zhongyu's offshore loan proportion reached 76% by end-June 2022, mostly in floating-rate borrowings. Fitch believes rising global interest rates will weaken the company's interest coverage ratio, reducing financial flexibility to some extent. Fitch expects Fitch-defined EBITDA interest coverage to weaken during 2022-2025 from 4.4x in 2021, but remain commensurate with the 'B+' rating level. Fitch believes Zhongyu remained compliant with its loan covenants in 2022. Zhongyu plans to refinance some maturing offshore debt with onshore debt over the next 12 months, which may improve its funding cost and financial flexibility. DERIVATION SUMMARY Zhongyu's 'B+' rating reflects its elevated leverage against a relatively stable and resilient business profile as a city-gas distributor in China. Fitch compares Zhongyu with Concord New Energy Group Limited (CNE, BB-/Stable) and ReNew Power Private Limited (BB-/Stable). Concord's renewable business faces lower price and volume risk with minimum guaranteed grid off-take. It also has no fuel cost exposure. Both Concord and Zhongyu used to have receivable collection issues, which pressured operating cash flow generation. However, the collection risk has dropped for both as Concord rebalanced its portfolio with more subsidy-free projects and Zhongyu cut back on its rural coal-to-gas project expansion. ReNew Power is much larger than Zhongyu as a leading renewable-power producer in India. ReNew, like Concord, has higher earnings visibility, but it faces much higher counterparty risks than Zhongyu from weak state power-distribution companies, leading to higher risks in receivable collection. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer: - Retail gas sales volume CAGR of 8% during 2021-2025, supported by increasing sales volume from rural projects and higher gas sales penetration in China. - Steady retail dollar margin in 2022, despite higher gas costs as the company continued to optimise its gas supply mix through its gas procurement management centre. Dollar margin to increase slightly in 2023-2025 on lower gas costs. - New connections dropping by 28% in 2022 due to the property market turmoil, and decline by another 7% during 2023-2025. - Smart-energy business' installed capacity to reach 550MW by 2025 with average utilisation hours of 1,350. - Capex to decline to about HKD1.08 billion-1.47 billion a year in 2022-2025 from HKD1.54 billion in 2021, as lower gas-related capex is offset by rising investments in the smart-energy business. RATING SENSITIVITIES Not applicable as the rating has been withdrawn. LIQUIDITY AND DEBT STRUCTURE Manageable Refinancing Risks: Zhongyu reported available cash of HKD1.8 billion at end-June 2022 and unused credit facilities of HKD3.7 billion against short-term debt of about HKD6.1 billion. Fitch expects the working-capital loan portion of the short-term debt, roughly HKD2.4 billion, to be rolled over due to the company's solid refinancing record and the stable nature of the city-gas business. Its sound banking relationships and record of refinancing will also help in obtaining additional working-capital loan facilities, if needed. The company also has large encumbered assets, which can be used to secure bank financing. ISSUER PROFILE Zhongyu was established in 2002 with dual headquarters in Shenzhen and Zhengzhou. The company is mainly engaged in the development and operation of city-gas projects in China. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Entity/Debt Rating Prior ----------- ------ ----- Zhongyu Energy Holdings Limited LT IDR B+ Affirmed B+ LT IDR WD Withdrawn B+ ========= I N D I A ========= ACB LIMITED: Ind-Ra Cuts Long Term Issuer Rating to 'C' ------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded ACB (India) Ltd.'s (ACBIL) Long-Term Issuer Rating to 'IND C' from 'IND BB' while resolving the Rating Watch with Negative Implications. The instrument-wise rating actions are: -- INR20.221 bil. (reduced from 22.021 bil.) Term loan due on December 2030 downgraded; off Rating Watch with Negative Implications with IND C rating; -- INR4.550 bil. Fund-based working capital limits Downgraded; off Rating Watch with Negative Implications with IND C/IND A4 rating; and -- INR12.084 bil. Non-fund-based working capital limits Downgraded; off Rating Watch with Negative Implications with IND C/IND A4 rating. The downgrade and the resolution of the Rating Watch with Negative Implications reflect a weaker-than-Ind-Ra-expected turnaround of ACBIL's operating performance during year-to-date (YTD) FY23, which is likely to lead to continued poor liquidity position. The company has already undergone a one-time restructuring (OTR) under the Reserve Bank of India's COVID-19 restructuring scheme, under which there was no debt repayment over September 1, 2020 - September 30, 2021. The restructuring scheme involved the funding of interest on term loans and working capital limits for the said period. However, the asset monetization planned during the OTR has not materialized as envisaged. The debt servicing started from October 31, 2021. The downgrade also reflects the risk associated with the possibility of invocation of the shortfall guarantee provided by ACBIL to the lenders of its stepdown subsidiary TRN Energy Private Limited (TRNEPL; ACBIL holds 74%; 'IND D (ISSUER NOT COOPERATING)'. Key Rating Drivers Washery Utilization Remained Weak in FY22 and YTDFY23: ACBIL's washery utilization remained weak at 18% during 1HFY23 (FY22: 23%; FY21: 11%, FY20: 43%, FY19: 57%) with volumes of 5.27 million tons (mt; 13.34mt, 6.31mt. 25.2mt, 33.2mt). In 1HFY23, the washery volumes were low on account of a ban on operations in Chhattisgarh during 2QFY23. ACB has annual washery contracts of 27.24mt. The management of the company expects the washery volumes to grow to 15mt-18mt annually only FY24 onwards, due to improved utilization. During FY21 and FY22, the washery volumes were impacted due to the reduced power demand owing to COVID-19, along with delays in the finalization of washing contracts with power-generating companies as the Ministry of Environment, Forest and Climate Change eliminated the mandatory coal washing requirement for power generating companies. Given the integrated nature of ACBIL's operations, the lack of beneficiation volumes impacts power and coal trading segments. The coal offtake volume reduced to 0.5mt (FY22: 1.44mt; FY21: 0.29mt). Furthermore, the shortage of coal rejects due to lower washery utilization is not allowing the company to increase the profits from the power segment. Credit Profile Remains Weak: ACBIL's EBITDA for 1HFY23 declined to INR1.4 billion (FY22: INR3.4 billion; FY21: negative INR1.0 billion; FY20: INR3.3 billion) due to the ban on operations in Chhattisgarh. However, the EBITDA generation was supported by the realization of coal and power sale. The revenue from coal operations declined to INR2.9 billion during 1HFY23 (FY22: INR6.2 billion; FY21: INR2.2 billion). The average realization from the coal sold during 1HFY23 increased to INR1,466/tons (FY22: INR1,090/tons; FY21: INR1,491/tons). ACBIL's realization for the power sold improved to INR5.2/unit in 1HFY23 (FY22: INR3.39/unit: FY21: INR2.56/unit) on account of an increase in the power prices at the exchange. The overall revenues from the power segment remained at INR3.3 billion in 1HFY23 (FY22: INR6.7 billion; FY21: INR4.9 billion). The total debt during 1HFY23 reduced marginally to INR25.6 billion before increasing to INR26.8 billion at FYE22 (FYE21: INR25.3 billion). The total term debt of the company was INR23.5 billion at end-1HFY23 (FYE22: INR24.5 billion; FYE21: INR21.7 billion). The total working capital debt of the company reduced to INR2.0 billion at end-1HFY23 (FYE22: INR2.2 billion; FYE21: INR3.6 billion). The total debt includes a funded interest term loan for term debt and a working capital debt accumulated during the period of Sep 2020 and Sep 2021 (restructuring period). The company also has a non-fund-based outstanding of INR10 billion in the form of bank guarantee/letter of credit. The net leverage of the company remained elevated at 7.41x for FY22 (FY21: not meaningful) and the interest coverage remained stretched at 1.09x (FY21: not meaningful). Furthermore, ACBIL has provided a shortfall guarantee for servicing TRNEPL's debt of around INR31.5 billion, which has been under continuous default from September 2021 and has been declared a non-performing asset by its lenders. As per the management, the shortfall undertaking has not been invoked and lenders of TRNEPL yet and TRNEPL is working on a long-term resolution plan to make its operations sustainable. Liquidity Indicator – Poor: ACBIL's liquidity remains poor given its high debt servicing obligations and the company not meeting the asset monetization envisaged during the restructuring plan. ACBIL's debt servicing till September 2021 was funded under the OTR scheme. However, its interest servicing started from October 2021, along with the principal repayment from December 2021. During FY23, ACBIL has a term debt repayment of INR2.4 billion (FY24: INR2.6 billion), of which, the last quarter repayment of INR540 million is pending. Additionally, it has a monthly interest servicing of around INR250 million. The company has serviced three (June, September and December) repayments during FY23, partly funded through the income tax refunds and the receipt of inter-corporate deposits (ICDs) from group companies. For the balance payments, the company has around INR136.9 million of cash balances in the trust and retention account as of January 19, 2023, along with around INR607 million in the debt service reserve account with various banks. According to the management, ACBIL is also exploring other means of monetization, including planned proceeds from the sale of 50% of its Talcher Washery for around INR1.2 billion and INR1.4 billion from the sale of land in ACBIL's subsidiary Aryan M.P. Power Generation Private Limited to ensure the availability of funds, which shall remain a key monitorable. Furthermore, liquidity support can come in from the recovery of cash from the loans and advances and non-current investments to related parties which remained at INR5.1 billion in 1HFY23 (FYE22: INR5.9 billion; FYE21: INR6.9 billion; FYE20: INR6.8 billion, FYE19: INR8.6 billion). The majority of the support is towards Maruti Clean Coal Pvt Ltd (associate company) and TRNEPL. Given that the liquidity remains poor, the absence of a significant pickup in business income leading to sound levels of cash flow generation and/or significant money receipts from monetization can continue to lead to debt service coverage ratio (FY22: below 1x) remaining stretched in FY23-FY24. Incomplete Asset Monetization as Envisaged during OTR: ACBIL had opted for restructuring under the COVID-19 scheme due to a decline in the power demand, which impacted its washery utilization. The OTR was implemented in June 2021 with an overall debt at INR27.31 billion, including the funded interest on term loans and working capital facilities over September 1, 2020 to September30, 2021. This had led to no debt servicing until September 2021 since the interest was serviced by the funded interest on term loans on existing loans. ACBIL's promoter had infused INR470 million of equity as part of the OTR plan to fund the 10% of equity share for the funded interest on working capital and term loans. The OTR plan also assumed around INR1.5 billion of investments and loans and advances to be realized by September 30, 2021 and another INR8.5 billion to be recovered until March 2022. However, the liquidity is under pressure as only INR1.1 billion of the envisaged INR9.6 billion monetization was realized in December 2022. The company has been able to meet its monthly interest service and quarterly repayment requirements through income tax refunds of INR0.7 billion and INR1.1 billion ICDs received from investments in group companies during FY22 and 1HFY23. ACBIL further plans to receive INR1.25 billion from the sale of its Talcher Washery, which is under approval from lenders. Furthermore, the company plans to sell its 15MW wind power plant. However, its monetization depends on lender approvals. Rating Sensitivities Positive: The minimum debt service coverage ratio being above 1x, a substantial increase in the liquidity funded through asset monetization and the resolution of the status of the sponsor's support undertaking provided by ACBIL in conjunction with the timely repayments by TRNEPL will lead to a positive rating action. Negative: Any adverse action on account of the sponsor support undertaking provided by ACBIL or any other event hampering timely debt servicing can result in a rating downgrade. Company Profile ACBIL, a flagship company of the Aryan Group, was incorporated in March 1997. ACBIL has nine coal washeries, with an installed capacity of 59.19mt. ACB is also operating coal washery of 1.60mt at Dahibari for Bharat Coking Coal Limited. In addition, ACBIL is engaged in power generation. It has three power plants with a 493MW thermal plant and a 15MW wind farm. ADANI GROUP: Hindenburg Held Short Positions, Cites High Debt ------------------------------------------------------------- Reuters reports that Hindenburg Research said on Jan. 25 it held short positions in Adani Group, accusing the Indian conglomerate of improper extensive use of entities set up in offshore tax havens and expressing concern about high debt levels. Reuters relates that the group, which is led by Gautam Adani, the world's third richest man according to Forbes, dismissed the U.S. short-seller's claims as baseless. The report, which comes days ahead of a $2.5 billion share offering by flagship firm Adani Enterprises, sparked sharp falls in shares of Adani group firms. Hindenburg, which has short positions in Adani companies through U.S.-traded bonds and non-Indian-traded derivative instruments, said key listed companies in the group had "substantial debt" which has put the entire group on a "precarious financial footing," according to Reuters. It also said that seven Adani listed companies have an 85% downside on a fundamental basis due to what it called "sky-high valuations." Reuters relates that Adani Group's Chief Financial Officer, Jugeshinder Singh, said in a statement that the company was shocked by the report, calling it a "malicious combination of selective misinformation and stale, baseless and discredited allegations." "The timing of the report's publication clearly betrays a brazen, mala fide intention to undermine the Adani Group's reputation with the principal objective of damaging the upcoming follow-on Public Offering from Adani Enterprises," it added. "The Group has always been in compliance with all laws." According to Reuters, Hindenburg said its report was based on an investigation over two years that involved speaking with dozens of individuals, including former Adani Group executives as well as a review of documents. Adani has repeatedly dismissed debt concerns, Reuters says. Singh told media on Jan. 21 "Nobody has raised debt concerns to us. No single investor has." In the wake of the Hindenburg report, shares in Adani Ports and Special Economic Zone fell 7.3% to their lowest level since early July, the report notes. Adani Enterprises dropped 3.7% to a near three-month low. Adani-owned cement firms ACC and Ambuja Cements, which it acquired from Switzerland's Holcim last year in a $10.5 billion deal, fell 7.2% and 9.7% respectively on Jan. 25, Reuters says. Reuters adds that Hindenburg's report said that five of seven key listed Adani companies have reported current ratios - a measure of liquid assets minus near-term liabilities - below 1. This, the short-seller said, suggested "a heightened short-term liquidity risk". Adani Group's total gross debt in the financial year ending March 31, 2022, rose 40% to INR2.2 trillion, Reuters discloses. Reuters, citing Refinitiv data, discloses that debt at Adani Group's seven key listed Adani companies exceeds equity, with debt at Adani Green Energy Ltd exceeding equity by more than 2,000%. CreditSights, part of the Fitch Group, described the group last September as "overleveraged" and said it had concerns about its debt, Reuters rlays. While the report later corrected some calculation errors, CreditSights said it maintained its concerns about Adani's leverage. Hindenburg is known for shorting electric truck maker Nikola Corp and Twitter though it later reversed its position in Twitter, Reuters says. Shares in Adani Enterprises surged 125% in 2022, while other group companies, including power and gas units, rose more than 100%. AGARWALLA TIMBERS: Ind-Ra Moves BB Rating to Non-Cooperating ------------------------------------------------------------ India Rating and Research (Ind-Ra) migrates Agarwalla Timbers Pvt. Ltd.'s (ATPL) to non-cooperating category and withdraws rating. The instrument-wise rating actions are: -- INR60 mil. Fund-based working capital limits migrated to non- cooperating category and withdrawn; and -- INR710 mil. Non-fund-based working capital limits migrated to non-cooperating category and withdrawn. Key Rating Drivers Ind-Ra has migrated the ratings to the non-cooperating category because the issuer did not participate in the rating exercise, despite continuous requests and follow-ups by the agency and has not provided information pertaining to full-year financial performance for FY22, sanctioned bank facilities and utilization levels, business plans and projections for the next three years, information on corporate governance, and management certificate. Ind-Ra is no longer required to maintain the ratings, as the agency has received a no-objection certificate from the lender. This is consistent with the Securities and Exchange Board of India's circular dated March 31, 2017 for credit rating agencies. Company Profile Incorporated in 1999 by Subash Goel and Bhim Sain Goel, Agarwalla Timbers is engaged in importing, processing and trading of timber. The company has saw mills located at Gandhidham, Gujarat with its registered office in Delhi. AGRO FRESH: CRISIL Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Shree Agro Fresh Ulo Cold Storage (SAFUCS) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term 0.25 CRISIL D (Issuer Not Bank Loan Facility Cooperating) Term Loan 8.75 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SAFUCS for obtaining information through letters and emails dated October 21, 2022 and December 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of SAFUCS, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SAFUCS is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SAFUCS continues to be 'CRISIL D Issuer Not Cooperating'. SAFUCS was set up in June 2014 by Mrs Sadhana Maloo, Mr S K Singh, Mr Dineshchandra Maheshwari, and Mr Narendrakumar Sharma. The firm has a cold storage facility at Hallol, Gujarat. ANIL CORNER: CRISIL Moves B Debt Rating to Not Cooperating ---------------------------------------------------------- CRISIL Ratings has migrated the rating on bank facilities of Anil Corner (AC) to 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6.5 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL Ratings has been consistently following up with AC for obtaining information through letters and emails dated January 6, 2023 and January 11, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of AC, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on AC is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of AC to 'CRISIL B/Stable Issuer not cooperating'. AC, set up in 1990, is a sole proprietorship firm of Mr Dinesh G Bhojwani. The firm trades in hardware fittings, bathroom fittings, and modular kitchen fittings, and has three showrooms in Nagpur, Maharashtra. ANU TECH: Ind-Ra Moves B Issuer Rating to Non-Cooperating --------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Anu Tech Infra Private Limited's standalone rating to the non-cooperating category. As per Reserve Bank of India, every credit enhancement (CE) rating needs to be complied with its guidelines i.e. Guidance Note dated April 22, 2022. The agency does not have sufficient information whether the outstanding 'IND BBB (CE)'/Stable/'IND A3+(CE)' rating of the proposed fund-based limits will comply with the Reserve Bank of India's guidelines or not. Therefore, Ind-Ra has re-assigned 'IND BBB(CE)'/Stable/'IND A3+(CE)' rating to 'IND B'/'IND A4' in line with the unsupported rating and has simultaneously migrated it to the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will now appear as 'IND B (ISSUER NOT COOPERATING)' on the agency's website. -- INR200 mil. Proposed fund-based limits reassigned and migrated to non-cooperating category with IND B (ISSUER NO COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating; and -- Unsupported rating migrated to non-cooperating category with IND B (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on November 23, 2021. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. Company Profile Incorporated in July 2021, Jaipur, Rajasthan-based , Anu Tech Infra provides infrastructure solutions and supplies raw material for infrastructure projects to its group company, Dara Engineering and Infrastructure Private Limited and other infrastructure companies. Dharmesh Bishnoi holds about 55% stake in both the companies. DEIPL was incorporated as a proprietorship in 2001 and was later converted into a private limited company by Papu Ram. The company undertakes engineering, procurement and construction projects in the water pipelines and road construction segments. BABA NAGA: CRISIL Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Baba Naga Rice and General Mills (BNRGM) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 8 CRISIL D (Issuer Not Cooperating) Proposed Working 4 CRISIL D (Issuer Not Capital Facility Cooperating) CRISIL Ratings has been consistently following up with BNRGM for obtaining information through letters and emails dated October 21, 2022 and December 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of BNRGM, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on BNRGM is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of BNRGM continues to be 'CRISIL D Issuer Not Cooperating'. BNRGM was incorporated by Mr. Rajpal Chadha in 1983.The firm is currently managed by Mrs. Surestha Rani & his son Mr. Saurav Chadha & daughter in law Ms Anchal Chadha. Since beginning, firm is engaged in milling and sorting of basmati as well as nonbasmati rice. It sells 1121 variety of basmati rice. The firm has a rice milling and sorting facility based in Amritsar, Punjab with an installed capacity of 12 tonnes per hour. BALASORE MARINE: CRISIL Lowers Rating on INR12cr Loan to D ---------------------------------------------------------- CRISIL Ratings has downgraded the rating of Balasore Marine Exports Private Limited (BMEPL) to 'CRISIL D; issuer not cooperating' from 'CRISIL B+/Stable; issuer not cooperating'. The downgrade reflects stretched liquidity position of the company resulting in export bills outstanding for more than 180 days. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Export Packing 12.0 CRISIL D (ISSUER NOT Credit COOPERATING; Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') Proposed Long Term 0.2 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING; Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with BMEPL for obtaining information through email dated March 14, 2022 and January 17, 2023, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non-co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward-looking component. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of Balasore Marine Exports Private Limited, which restricts CRISIL Ratings's ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on BMEPL's is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has downgraded the rating to 'CRISIL D; issuer not cooperating' from 'CRISIL B+/Stable; issuer not cooperating' The downgrade reflects stretched liquidity position of the company resulting in export bills outstanding for more than 180 days. BMEPL processes and exports sea food especially prawns. The unit has an installed processing capacity of 20 metric tonne per day. It is promoted and managed by Mr Gyana Ranjan Dash and Mr Manoranjan Panda. CENTENARY ARCADES: CRISIL Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Centenary Arcades Private Limited (CAPL) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Lease Rental 25.55 CRISIL D (Issuer Not Discounting Loan Cooperating) CRISIL Ratings has been consistently following up with CAPL for obtaining information through letters and emails dated October 21, 2022 and December 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of CAPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on CAPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of CAPL continues to be 'CRISIL D Issuer Not Cooperating'. CAPL is promoted by Mr N L Nagendra. It has commercial space in Mysore which has been occupied by Big Bazaar since 2008; CAPL has signed a 15-year agreement with Big Bazaar. CHANDRA ENGINEERS: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Chandra Engineers (CE) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit/ 4.45 CRISIL D (Issuer Not Overdraft facility Cooperating) Rupee Term Loan 7.55 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with CE for obtaining information through letters and emails dated October 21, 2022 and December 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of CE, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on CE is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of CE continues to be 'CRISIL D Issuer Not Cooperating'. Set up as a proprietorship firm in 1967, CE is promoted by Mr Satish Chandra. The firm manufactures various electrical and metal sheet stamping components, which majorly find application in the automotive, engineering and electronics industries. CE has manufacturing facilities at Manesar, Haryana and Alwar, Rajasthan. CHHAJED FOODS: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Chhajed Foods Private Limited (CFPL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 4 CRISIL D (Issuer Not Cooperating) Cash Credit 7 CRISIL D (Issuer Not Cooperating) Cash Credit 3 CRISIL D (Issuer Not Cooperating) Inland/Import 5 CRISIL D (Issuer Not Letter of Credit Cooperating) Proposed Long Term 7.73 CRISIL D (Issuer Not Bank Loan Facility Cooperating) Proposed Term Loan 9.4 CRISIL D (Issuer Not Cooperating) Term Loan 8.87 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with CFPL for obtaining information through letters and emails dated October 21, 2022 and December 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of CFPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on CFPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of CFPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Incorporated in 1996 and promoted by Chhajed family, CFPL manufactures ready-to-fry and ready-to-boil food pellets at its facility in Ahmedabad. Operations are managed by Mr. Rajesh Chhajed. COARSER SPINNING: CRISIL Assigns B+ Rating to INR53.75cr Loan ------------------------------------------------------------- CRISIL Ratings has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of Coarser Spinning Private Limited (CSPL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 1 CRISIL A4 (Assigned) Cash Credit 10 CRISIL B+/Stable (Assigned) Proposed Short Term Bank Loan Facility 0.25 CRISIL A4 (Assigned) Proposed Term Loan 53.75 CRISIL B+/Stable (Assigned) The rating reflects CSPL's susceptibility to volatility in raw material prices and exposure to risks related to ongoing project. These weaknesses are partially offset by its extensive industry experience of the promoters and adoption of latest machinery in steady industry. Key Rating Drivers & Detailed Description Weaknesses: * Susceptibility to volatility in raw material prices: The textile spinning industry has several unorganized players with small capacities. The entry barriers to the industry are low due to limited capital and technology requirements and little differentiation in end products. These factors will continue to exert pricing pressure over the medium term. Moreover, revenue and profitability will remain susceptible to volatility in the price of raw material, cotton. * Exposure to risks related to ongoing project: CSPL is scheduled to commence its operations in August 2023. Demand risk is also expected to be moderate as the industry is highly fragmented marked by low entry barriers with small capital and technological requirements. Also, will be exposed to intense competition from other players in the segment. Timely completion and successful stabilisation of its operations at the new unit will remain a key rating sensitivity factor. * Expected leveraged capital structure: CSPL is expected to have an average financial risk profile with high gearing along with moderate debt protection metrics in absence of commercialization of operations. The project is aggressively funded through a debt-equity ratio 1.99 times, any cost over run or delay in commercialization can lead to high leverage position. Strength: * Extensive industry experience of the promoters: The promoters have an experience of over 15 years in Textile industry. This has given them an understanding of the dynamics of the market and enabled them to establish relationships with suppliers and customers. Additionally, the experience of the promoters will also aid the company in understanding of technological risk related ongoing installation. * Adoption of latest machinery in steady industry: CSPL is currently in process of setting a new unit, the unit installed is equipped with latest equipment & technology. Therefore, the adoption of latest machinery in steady textile industry would support its business profile. Liquidity: Stretched Liquidity of the company is marked stretched as the company is into nascent stage of implementation, with commercialization of project to happen in August'23. Timely execution of project leading to healthy inflow of cash will remain a key monitorable. Company's liquidity is supported by availability of support provided by the promoters in form of USL. Outlook: Stable CRISIL Ratings believes that CSPL will benefit over the medium term from its promoter extensive industry experience. Rating Sensitivity factors Upward factor * Timely completion of project without any time or cost overrun * Reports significant revenue and profitability leading to cash accruals of Rs 1.5 crore or more. Downward factor * Delay in project completion or commencement of operations * More than planned debt infusion leading to debt-to-equity ratio of more than 2.5 times. Incorporated in 2021, CSPL is setting up a spinning facility to manufacture cotton yarn at Amreli, Gujrat. The company is promoted by Mr. Niravkumar Rameshchandra Patel, Mr. Dharmendra Valjibhai Hirpara, Mr. Dharmesh Maganlal Patel, Mr. Himanshu Jagubhai Patel and Mr. Atulbhai Pravinchandra Parekh. CORROSION ENGINEERS: CRISIL Keeps D Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Corrosion Engineers Private Limited (CEPL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 3 CRISIL D (Issuer Not Cooperating) Letter of Credit 8 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with CEPL for obtaining information through letters and emails dated October 21, 2022 and December 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of CEPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on CEPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of CEPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Incorporated in 1974, Delhi-based CEPL is owned and managed by Mr Sanjay Kumar and Mr Narender Kumar. It trades poly-vinyl-chloride (PVC) resin, plasticiser, ethylene vinyl acetate, PVC heat stabilisers, waxes, rubber additives and other chemicals that are used in manufacturing plastics and auto components. DEEPIKA INFRATECH: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Deepika Infratech Private Limited (DIPL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 29.14 CRISIL D (Issuer Not Cooperating) Bank Guarantee 18.16 CRISIL D (Issuer Not Cooperating) Bank Guarantee 30.51 CRISIL D (Issuer Not Cooperating) Bank Guarantee 31.3 CRISIL D (Issuer Not Cooperating) Bank Guarantee 21.39 CRISIL D (Issuer Not Cooperating) Cash Credit 10 CRISIL D (Issuer Not Cooperating) Cash Credit 10 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with DIPL for obtaining information through letters and emails dated October 21, 2022 and December 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of DIPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on DIPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of DIPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Incorporated in 2004, Hyderabad-based DIPL, promoted by Mr Kandala Vijaya, is engaged in civil construction works mainly irrigation projects. DESWAL HATCHERIES: CRISIL Hikes Rating on INR7.50cr Loan to B ------------------------------------------------------------- CRISIL Ratings has upgraded its rating on the long-term bank facilities of Deswal Hatcheries Private Limited (DHPL; a part of the Kissan Hatcheries group) to 'CRISIL B/Stable' from 'CRISIL D'. The upgrade reflects regularisation of debt servicing by the company. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term 4.65 CRISIL B/Stable (Upgraded from Bank Loan Facility 'CRISIL D') Cash Credit 7.50 CRISIL B/Stable (Upgraded from 'CRISIL D') Long Term Loan 2 CRISIL B/Stable (Upgraded from 'CRISIL D') The rating reflects the modest scale of operations of the Kissan Hatcheries group amid intense competition and its vulnerability to risks inherent in the poultry industry. The weaknesses are partially offset by the extensive experience of the promoters and the above-average financial risk profile of the group. Analytical approach CRISIL Ratings has combined the business and financial risk profiles of DHPL and Kissan Hatcheries (KH). This is because both the entities, together referred to as the Kissan Hatcheries group, are in the same business and derive significant synergies owing to business linkages, and common clients and brand. Key rating drivers and detailed description Weaknesses: * Modest scale of operations amid intense competition: Net sales are expected to remain modest at INR94-95 crore in fiscal 2023 with full capacity utilisation, constraining the business risk profile. * Vulnerability to risks inherent in the poultry industry: The poultry industry is susceptible to outbreak of diseases, which could lower sales volume and selling price, and impact production of healthy chicks. Strengths: * Extensive experience of the promoters: Presence of more than a decade in the poultry industry has enabled the promoters to establish healthy relationships with key customers, resulting in substantial offtake of products. * Above-average financial risk profile: The networth and total outside liabilities to tangible networth ratio are expected to remain moderate at INR20-21 crore and 2.0-2.10 times, respectively, for fiscal 2023. Debt protection metrics are comfortable, with interest coverage ratio expected above 3 times and net cash accrual to adjusted debt ratio at 0.17 time for fiscal 2023. The metrics should remain comfortable over the medium term in the absence of any major debt-funded capital expenditure (capex). Liquidity: Poor The liquidity remains stretched as indicated by full bank limit utilisation and the management availing of temporary overdraft over the 12 months through December 2022. Net cash accrual is expected at INR5 crore against debt obligation of INR1-2 crore in the medium term. Current ratio was moderate at 1.24 times as on March 31, 2022. Need based funding support in the form of unsecured loans from the promoters will continue to support the business. Outlook: Stable CRISIL Ratings believes the Kissan Hatcheries group will continue to benefit from the extensive industry experience of the promoters. Rating sensitivity factors Upward factors * Increase in revenue by more than 20% per fiscal along with stable operating margin * Improvement in the liquidity risk profile indicated by moderation in bank line utilisation Downward factors * Decline in the operating margin to below 6% * Stretched working capital cycle leading to deterioration in the liquidity risk profile About the group The Kissan Hatcheries group, promoted by Mr Shubham Deswal and Mr Karan Singh, is engaged in the poultry business and deals in day-old chicks. KH and DHPL were established in 2006 and 2012, respectively, in Jind, Haryana. DOLBIS GRANITE: CRISIL Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of DolbiS Granite Exports Private Limited (DGE) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4 CRISIL D (Issuer Not Cooperating) Long Term Loan 5 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with DGE for obtaining information through letters and emails dated October 21, 2022 and December 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of DGE, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on DGE is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of DGE continues to be 'CRISIL D Issuer Not Cooperating'. DGE, is a Chennai based company, is involved in processing and export of granite. The company has manufacturing facility based in Tamil Nadu. ELECTRA ACCUMULATORS: CRISIL Keeps D Rating in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Electra Accumulators Limited (EAL) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 17.5 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with EAL for obtaining information through letters and emails dated October 21, 2022 and December 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of EAL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on EAL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of EAL continues to be 'CRISIL D Issuer Not Cooperating'. Established in 1962 by the late Mr Shantilal Sanghavi and his family, EAPL manufactures automotive batteries, tubular batteries, and solar batteries. It has its manufacturing units in Vapi (Gujarat). The operations are managed by Mr Chetan Sanghvi. ELECTRA GLOBAL: CRISIL Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Electra Global Resources Private Limited (EGRPL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5.5 CRISIL D (Issuer Not Cooperating) Letter of Credit 3.5 CRISIL D (Issuer Not Cooperating) Proposed Long Term Bank Loan Facility 0.5 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with EGRPL for obtaining information through letters and emails dated October 21, 2022 and December 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of EGRPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on EGRPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of EGRPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. EGRPL erstwhile known as Priti International Pvt Ltd was incorporated in 1995 by Mr. Chetan Sanghvi and Mr. Bhaumik Sanghvi. The company is engaged in trading of motorcycle batteries and lead. The company had started with trading of lead in July 2015 whereas trading of batteries started from September 2015. JAYPEE INFRATECH: Consortium Lenders Assign Their Debt to NARCL --------------------------------------------------------------- Deccan Herald reports that debt-ridden Jaypee Infratech, which is facing insolvency proceedings, on Jan. 24 said that all the consortium lenders -- excluding ICICI Bank -- have assigned their debt to National Asset Reconstruction Company Ltd (NARCL). Jaypee Infratech Ltd (JIL) is currently undergoing Corporate Insolvency Resolution Process (CIRP) under the provisions of the Insolvency & Bankruptcy Code (IBC) following an order dated August 9, 2017, by the Allahabad-Bench of National Company Law Tribunal (NCLT). The case has been reserved for orders on the approval of the resolution plan in respect of JIL before the NCLT, Principal Bench, Delhi, the report notes. Deccan Herald relates that in a regulatory filing, JIL said the company has been financed by a consortium of lenders comprising IDBI Bank Ltd, India Infrastructure Finance Company Ltd, Union Bank of India, Life Insurance Corporation of India, State Bank of India, Canara Bank, Bank of Maharashtra, IFCI Ltd, J&K Bank Ltd and ICICI Bank -- which also form part of the Committee of Creditors (CoC). "IDBI Bank Ltd acting as lenders' agent of the said Consortium, vide its letter dated January 21, 2023, has intimated JIL through its Interim Resolution Professional (IRP) that all the consortium lenders, excluding ICICI Bank, have assigned their debts to National Asset Reconstruction Company Ltd (NARCL) . . . vide assignment deed dated January 20, 2023," JIL said in the filing. JIL's lenders have submitted a claim of INR9,783 crore and CIRP was initiated over an application by an IDBI Bank-led consortium. It was among the first list of 12 companies against whom, the Reserve Bank of India (RBI) had directed the banks to approach the NCLT to get insolvency proceedings initiated. KIRAN INDUSTRIES: Ind-Ra Affirms BB+ Long Term Issuer Rating ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has affirmed Kiran Industries Private Limited's (KIPL) Long-Term Issuer Rating at 'IND BB+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR278 mil. (increased from INR247 mil.) Term loans due on September 2025 affirmed with IND BB+/Stable rating; -- INR270 mil. (increased from INR240 mil.) Fund-based working capital limits affirmed with IND BB+/Stable/IND A4+ rating; and -- INR2 mil. Non-fund-based working capital limits affirmed with IND A4+ rating. Key Rating Drivers The ratings reflect KIPL's continued medium scale of operations as indicated by revenue of INR2,458.30 million in FY22 (FY21: INR1,474.42 million). The growth in revenue was owing to an increase in capacity utilization to 1,1152 million tons per annum in FY22 (FY21: 8,040 million tons per annum) and higher sales realization. The company booked revenue of INR1,501.34 million in 1HFY23. Ind-Ra expects the revenue to remain at a similar level in FY23 as the company is already operating at near-full capacity, due to which the volumes are unlikely to see any significant growth. The ratings continue to factor in the company's modest EBITDA margins of 5.52% in FY22 (FY21: 7.38%) with a return on capital employed of 9.1% (6.30%). The decline in margins was on account of high cost of cotton yarn, which is the key raw material in the production of dyed polyester yarn, as well as the highly fragmented nature of the textile industry. In 1HFY23, the EBITDA margins decreased marginally to 3.37%. Ind-Ra expects FY23 margins to remain at FY22 level. The ratings also factor in KIPL's continued moderate credit metrics. The gross interest coverage (operating EBITDA/gross interest expense) improved to 2.43x in FY22 (FY21: 1.86x) and the net leverage (total adjusted debt/operating EBITDA) to 4.56x (6.37x) owing to an increase in the EBITDA to INR135.69 million (INR108.88 million) as well as repayment of term loans. The agency expects the credit metrics to remain at a similar level in the short term on the back of low interest expense and absence of any debt-led capex plan. Liquidity Indicator - Stretched: KIPL's average peak use of the fund-based and the non-fund-based working capital limits was 94.16% and 14.70%, respectively, over the 12 months ended December 2022. The cash flow from operations turned positive to INR67.84million in FY22 (FY21: negative INR53.25 million), on account of favorable changes in working capital. Furthermore, the net working capital cycle improved significantly to 81 days in FY22 (FY21: 171 days) due to a decrease in the inventory holding period to 60 days (130 days) and receivable period to 52days (68 days). The inventory days improved due to higher revenue and normalization of operations post subsiding of COVID-19 infections. The company's cash and cash equivalents remained low at INR6.45 million at FYE22 (FYE21: INR14.34 million, FYE20: INR14.39 million). The unsecured loans of INR110 million were subordinated to bank debt. The company does not have any major debt-led capex plans in the near term. The company has scheduled debt obligations of INR89.36 million and INR86.27million for FY23 and FY24, respectively. Furthermore, the company does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. However, the ratings remain supported by KIPL's promoters' three-decade-long experience in the textile industry, leading to longstanding relationships with its customers. Rating Sensitivities Negative: A decline in the revenue or the EBITDA margins, resulting in the net leverage exceeding 4.5x and deterioration in the liquidity position, all on a sustained basis, would be negative for the ratings. Positive: An improvement in the revenue and the EBITDA margins, resulting in an improvement in the liquidity and credit metrics, all on a sustained basis, would be positive for the ratings. Company Profile Incorporated in 1986, KIPL manufactures polyester dyed yarns, embroidery threads viscose/polyester and metallic yarns. The company has its registered office in Udhana, Surat, Gujarat. It has offices and dealers in all major Indian textile centers such as Surat, Mumbai, Delhi, Kolkata, Bengaluru and Tirupur. It is promoted by Amit Sekhani, Ratanlal Sekhani and Anand Sekhani. KISSAN HATCHERIES: CRISIL Hikes Rating on INR12cr Loan to B ----------------------------------------------------------- CRISIL Ratings has upgraded its rating on the long-term bank facilities of Kissan Hatcheries (KH; part of the Kissan Hatcheries group) to 'CRISIL B/Stable' from 'CRISIL D'. The upgrade reflects regularisation of debt servicing by the firm. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 12 CRISIL B/Stable (Upgraded from 'CRISIL D') Long Term Loan 1.77 CRISIL B/Stable (Upgraded from 'CRISIL D') The rating reflects the modest scale of operations of the Kissan Hatcheries group amid intense competition and its vulnerability to risks inherent in the poultry industry. The weaknesses are partially offset by the extensive experience of the promoters and the above-average financial risk profile of the group. Analytical approach CRISIL Ratings has combined the business and financial risk profiles of Deswal Hatcheries Pvt Ltd (DHPL) and KH. This is because both the entities, together referred to as the Kissan Hatcheries group, are in the same business and derive significant synergies owing to business linkages, and common clients and brand. Key rating drivers and detailed description Weaknesses: * Modest scale of operations amid intense competition: Net sales are expected to remain modest at INR94-95 crore in fiscal 2023 with full capacity utilisation, constraining the business risk profile. * Vulnerability to risks inherent in the poultry industry: The poultry industry is susceptible to outbreak of diseases, which could lower sales volume and selling price, and impact production of healthy chicks. Strengths: * Extensive experience of the promoters: Presence of more than a decade in the poultry industry has enabled the promoters to establish healthy relationships with key customers, resulting in substantial offtake of products. * Above-average financial risk profile: The networth and total outside liabilities to tangible networth ratio are expected to remain moderate at INR20-21 crore and 2.0-2.10 times, respectively, for fiscal 2023. Debt protection metrics are comfortable, with interest coverage ratio expected above 3 times and net cash accrual to adjusted debt ratio at 0.17 time for fiscal 2023. The metrics should remain comfortable over the medium term in the absence of any major debt-funded capital expenditure (capex). Liquidity: Poor The liquidity remains stretched as indicated by full bank limit utilisation and the management availing of temporary overdraft over the 12 months through December 2022. Net cash accrual is expected at INR5 crore against debt obligation of INR1-2 crore in the medium term. Current ratio was moderate at 1.24 times as on March 31, 2022. Need based funding support in the form of unsecured loans from the promoters will continue to support the business. Outlook: Stable CRISIL Ratings believes the Kissan Hatcheries group will continue to benefit from the extensive industry experience of the promoters. Rating sensitivity factors Upward factors * Increase in revenue by more than 20% per fiscal along with stable operating margin * Improvement in the liquidity risk profile indicated by moderation in bank line utilisation Downward factors * Decline in the operating margin to below 6% * Stretched working capital cycle leading to deterioration in the liquidity risk profile About the group The Kissan Hatcheries group, promoted by Mr Shubham Deswal and Mr Karan Singh, is engaged in the poultry business and deals in day-old chicks. KH and DHPL were established in 2006 and 2012, respectively, in Jind, Haryana. LEBEN LABORATORIES: CRISIL Withdraws B Rating on INR7cr Loan ------------------------------------------------------------ CRISIL Ratings has withdrawn the ratings on certain bank facilities of Leben Laboratories Private Limited (LLPL), as: Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Letter of Credit 2 CRISIL A4/Issuer Not Cooperating (Withdrawn) Letter of Credit 0.15 CRISIL A4/Issuer Not Cooperating (Withdrawn) Packing Credit 7 CRISIL B/Stable/Issuer Not Cooperating (Withdrawn) Packing Credit 5 CRISIL B/Stable/Issuer Not Cooperating (Withdrawn) CRISIL Ratings has been consistently following up with LLPL for obtaining information through letters and emails dated January 22, 2022 and February 7, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of LLPL. This restricts CRISIL Ratings' ability to take a forward looking view on the credit quality of the entity. CRISIL Ratings believes that rating action on LLPL is consistent with 'Assessing Information Adequacy Risk'. CRISIL Ratings has Continues the ratings on the bank facilities of LLPL to 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. CRISIL Ratings has withdrawn its rating on the bank facilities of LLPL on the request of the company and after receiving no objection certificate from the bank. The rating action is in-line with CRISIL Rating's policy on withdrawal of its rating on bank loan facilities. LLPL was founded in 1980 by Mr Bharat Shah, who manages current operations, and his brother, Mr Haresh Shah. The company manufactures pharma formulations in the form of tablets, syrups, capsules, ointment, and injections. It caters to therapeutic segments including anti-allergic, antibiotics, antiviral, analgesic, and antihistaminic. The manufacturing unit is in Akola, Maharashtra, and the corporate office in Mumbai. From fiscal 2017, the domestic business unit has been separated as a new company and LLPL now caters only to the overseas markets. MOHAN MOTOR: CRISIL Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Mohan Motor Udyog Private Limited (MMUPL) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 65 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with MMUPL for obtaining information through letters and emails dated October 21, 2022 and December 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of MMUPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on MMUPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of MMUPL continues to be 'CRISIL D Issuer Not Cooperating'. Incorporated in 1986 and promoted by Mr Sandip Kumar Bajaj and Mr Gaurav Bajaj, MMUPL was an authorised dealer for Maruti Suzuki India Ltd till March 2014, when it acquired dealership of Hyundai Motor India Ltd vehicles. It has two exclusive showrooms with three extension counters and one workshop in Kolkata. PADAM CARS: CRISIL Lowers Rating on INR30cr Cash Loan to D ---------------------------------------------------------- CRISIL Ratings has downgraded its rating on the long-term bank facilities of Padam Cars Private Limited (PCPL) to 'CRISIL D; Issuer not cooperating' from 'CRISIL B/Stable; Issuer not cooperating' due to delay in servicing of term debt obligations, as confirmed by the banker of the company. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 30 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B/Stable ISSUER NOT COOPERATING') Inventory Funding 16 CRISIL D (ISSUER NOT Facility COOPERATING; Downgraded from 'CRISIL B/Stable ISSUER NOT COOPERATING') Inventory Funding 10 CRISIL D (ISSUER NOT Facility COOPERATING; Downgraded from 'CRISIL B/Stable ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with PCPL for obtaining information through letters and emails dated April 20, 2022 and June 9, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non-co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward-looking component.' Detailed Rationale Despite repeated attempts to engage with the company's management, CRISIL Ratings has not received any information on the financial performance or strategic intent of PCPL, which restricts the ability of CRISIL Ratings to take a forward-looking view on the entity's credit quality. The rating action on SGIL is consistent with the criteria detailed in 'Assessing information adequacy risk'. PCPL, based in Amritsar, is promoted by Mr. Amarijt Mehta and his wife Ms. Babita Mehta. The company is a dealer for passenger cars of Renault and GM. It has 10 showrooms spread across Punjab. PUNEET AUTOMOBILES: Ind-Ra Withdraws BB Long Term Issuer Rating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Puneet Automobiles Private Limited's (PAPL) Long-Term Issuer Rating of 'IND BB' in the non-cooperating category and has simultaneously withdrawn the same. The instrument-wise rating actions are: -- INR470 mil. Fund-based limits* maintained in non-cooperating category and withdrawn; and -- INR31.53 mil. Term loan^ issued on September 2020 maintained in non-cooperating category and withdrawn. *Maintained at 'IND BB (ISSUER NOT COOPERATING)'/'IND A4+ (ISSUER NOT COOPERATING)' before being withdrawn ^ Maintained at 'IND BB (ISSUER NOT COOPERATING)' before being withdrawn Key Rating Drivers Ind-Ra has maintained the ratings in the non-cooperating category because PAPL did not participate in the rating exercise despite requests by the agency and has not provided information pertaining to the full-year financial performance in FY22, sanctioned bank facilities and utilization, business plan and projections for the next three years, information on corporate governance. Ind-Ra is no longer required to maintain the ratings, as the agency has received a no-objection certificate from the lender. This is consistent with the Securities and Exchange Board of India's circular dated March 31, 2017 for credit rating agencies. Ind-Ra will no longer provide analytical and rating coverage for the company. Company Profile PAPL was incorporated in 2002 by Prabhat Mishra, Harish Mishra and Subash Mishra. PAPL is an authorized 3S dealer of Tata Motors. The company operates out of Varanasi. RAJURI STEELS: Ind-Ra Assigns BB+ Long Term Issuer Rating --------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Rajuri Steels and TMT Bars Private Limited (RSTPL) a Long-Term Issuer Rating of 'IND BB+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR200.0 mil. Fund-based working capital limits assigned with IND BB+/Stable/ IND A4+ rating; -- INR400.0 mil. Non-fund-based working capital limits assigned with IND A4+ rating; -- INR200.0 mil. Term loans due on March 2027 assigned with IND BB+/Stable rating; -- INR400.0 mil. Proposed fund-based working capital limits assigned with IND BB+/Stable/ IND A4+ rating; and -- INR600.0 mil. Proposed term loans due on December 2029 assigned with IND BB+/Stable rating. Key Rating Drivers Liquidity Indicator- Stretched: RSTPL's peak average utilization of its fund-based limits stood high at 91.03% while that of its non-fund-based limits was 67.99% for the 12 months ended November 2022. The company is planning to enhance its fund-based limits by INR400.0 million, which is currently under process. As of March 2022, the company had cash and cash equivalents of INR30.67 million. The free cash flow from operations remained negative at INR850.06 million in FY22 (FY21: negative INR116.65 million; FY20: negative INR335.06 million), due to capital expenditure and unfavorable changes in its working capital. The net working capital days improved to 22 days in FY22 (FY21: 42 days; FY20: 63 days), on account of an improvement in the inventory days to 23 (38; 44). The company has scheduled repayments of INR46.50 million in FY23 and INR98.8 million in FY24 as against net cash accruals of INR136.29 million in FY22. The company expects to receive an industrial promotion subsidy of INR165.46 million by March 2023. Partially Integrated Manufacturing Facility: RSTPL is a partially integrated player, manufacturing TMT bars (with a total installed capacity of 1,50,000 metric tons per annum (MTPA) as of December 2022), billets (with a total installed capacity of 84,000MTPA), leading to an efficient cost-structure. Billets are captively consumed for the production of TMT bars. The company, which has its plant at Daregaon in Jalna (Maharashtra), is currently operating at 100% capacity utilization for billets and 65% capacity utilization for TMT bars. Fluctuating and Low Operating Margins despite Improving Revenue: RSTPL's revenue expanded at a CAGR of 37.74% over FY19-FY22. In FY22, the total revenue increased 58.43% to INR7,318.06 million (FY21: INR4,619.10 million; FY20: INR3,181.07 million), led by a significant improvement in the per metric ton realization of TMT bars to INR51,000 (INR37,618; INR33,001). TMT bars constituted 88.6 % of the total sales in FY22 (FY21: 79.6%; FY20: 82.9%), while trading in commodities contributed 9.46% to its total sales (18.37%; 13.65%). The company booked revenue of INR4,727.622 million till 7MFY23. The scale of operations remained large. Despite the increase in its revenue, RSTPL's EBITDA margins fluctuated between negative 3.13% and 2.8% over FY19-FY22. In FY22, the EBIDTA margins declined to 0.23% (FY21: 2.8%; FY20: negative 3.13%), as the company used non-hot roll process, leading to an increase in overall cost of material consumed. Its raw materials accounted for more than 98% of the total cost of sales over FY19- FY22.The absolute EBIDTA stood at INR16.94 million (FY21: INR129.44 million; FY20: negative INR99.49 million). Ind-Ra expects the margins to improve in the near term as the company is planning a capex for hot roll process which would result in a decline in overall cost of production. Deteriorating Credit Metrics: RSTPL's credit metrics deteriorated in FY22, with its gross interest coverage (operating EBITDAR/gross interest expense) falling to 0.36x (FY21:2.83x; FY20: negative 2.54x) and the net leverage including unsecured loans (total adjusted net debt/operating EBITDAR) soared to 65.90x in FY22 (FY21: 6.68x), due to a decline in absolute EBIDTA. The net leverage excluding unsecured loans (total adjusted net debt/operating EBITDAR) was at 22.85x in FY22 (FY21: 2.59x). Ind-Ra expects the credit metrics to deteriorate over the medium term, owing to additional debt requirement for capex plans. Income Tax Search and Seizure: As per the audit report of FY22, a search was conducted by the income tax department in September 2021, wherein an excess scrap of INR97.58 million was declared as unaccounted income in FY22. Inherent Industry Risk: The steel sector is characterized by highly cyclical demand, and volatility in input prices and product realizations. The company's profitability and internal accruals are characterized by the volatility in raw material prices, partially offset by the management's proper purchase planning. Capex Plans: RSTPL plans to set up the capacity expansion project adjacent to its exiting TMT unit, thereby enhancing overall billet capacity to 2,84,000MTPA from 84,000MTPA and its TMT capacity to 3,30,000 MTPA from 1,50,000 MTPA. The overall project cost is estimated to be around INR1,600 million and the commercial operations of the project would start on February 1, 2023. Of the total project cost, the company proposed to fund around INR600.0 million by term loans (which is currently under process) and the balance by internal accruals, unsecured loans and share application money. The company incurred INR1,172.9 million as of September 30, 2022 and the funding arrangement has been done for the same. Experienced Promoters/Directors, Established Business Operation and Distribution Network: RSTPL has a track record of more than 18 year of operations and has network with more than 1,200 dealers in Maharashtra (45%), Karnataka (35%) and the balance in Gujarat, Madhya Pradesh, Andhra Pradesh and Rajasthan. The company sells around 85% of its products to its dealers/distributors and the remaining 15% to the infrastructure projects. The company is managed by Kailash Loya (managing director) along with other directors namely Santosh Mundada, Shivkumar Lohiya, Purushottam Toshniwal and Vijay Bharadiya. The directors have wide experience in different industries such as steel, fertilizers, agriculture, among others. Rating Sensitivities Positive: Completion of its capex on time, receipt of the subsidy in FY23, an improvement in liquidity and the scale of operations, leading to the interest coverage rising above 2.0x and the net leverage falling below 4x, on a sustained basis, could be positive for the ratings. Negative: Any further deterioration in its liquidity and/or the credit metrics or the scale of operations or a delay in the commencement of the project could lead to a negative rating action. Company Profile Incorporated in 2004, RSTPL (earlier known as Saptashrungi Alloy Private Limited), manufactures TMT bars under the brand name "Rajuri TMT Bar" and billets which is captively used for manufacturing TMT bars. The company has a manufacturing plant at Jalna, Maharashtra. RICON INDUSTRIES: Ind-Ra Moves BB Issuer Rating to Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has migrated Ricon Industries' Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR566.90 mil. Term loan due on February 2027 migrated to non- cooperating category with IND BB (ISSUER NOT COOPERATING) rating; -- INR225 mil. Fund-based limits migrated to non-cooperating category with IND BB (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR34.2 mil. Non-fund-based limits migrated to Non- Cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on November 25, 2021. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. Company Profile Ricon Industries is one of the group companies under R&B Denims which commissioned 30 tons of a cotton yarn production facility in June 2017. The company manufactures various quality and fancy cotton yarns. It has a strong presence in the domestic and exports markets. S A MULLA: CRISIL Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of S A Mulla (SAM) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 5 CRISIL D (Issuer Not Cooperating) Cash Credit 5 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SAM for obtaining information through letters and emails dated October 21, 2022 and December 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of SAM, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SAM is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SAM continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. SAM, set up in 1986 as a proprietorship, was converted into a partnership in fiscal 2018. The Kolhapur-based firm constructs roads and canals for the Karnataka and Maharashtra governments. Mr Saifuddin A Mulla and Mr Mainuddin S Mulla are the partners. SATSANGI SAKET: CRISIL Keeps C Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Shree Satsangi Saket Dham Ram Ashram (SSSDRA) continue to be 'CRISIL C/CRISIL A4 Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Overdraft Facility 2.66 CRISIL A4 (Issuer Not Cooperating) Proposed Long Term 0.82 CRISIL C (Issuer Not Bank Loan Facility Cooperating) Rupee Term Loan 6.67 CRISIL C (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SSSDRA for obtaining information through letters and emails dated October 21, 2022 and December 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of SSSDRA, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SSSDRA is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SSSDRA continues to be 'CRISIL C/CRISIL A4 Issuer Not Cooperating'. SSSDRA was set up as a trust in 2001 by Mr. Bharatbhai Rao and his family. It operates KJ College of Pharmacy, KJ Institute of Management, and KJ Institute of Engineering and Technology, offering bachelors and masters courses in pharmacy, management, and engineering. SENAPATI MOTORS: CRISIL Keeps D Debt Rating in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Senapati Motors (SM) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5.5 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SM for obtaining information through letters and emails dated October 21, 2022 and December 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of SM, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SM is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SM continues to be 'CRISIL D Issuer Not Cooperating'. An Orissa-based dealer, SM is involved in the trading of two-wheelers of TVS Motor Company. The manufacturing facility is in Jagatsinghpur, Orissa. SINGH CYCLE: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Singh Cycle & Motor Co. (SCMC) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 2.25 CRISIL D (Issuer Not Cooperating) Cash Credit 1.5 CRISIL D (Issuer Not Cooperating) Inventory Funding 4.25 CRISIL D (Issuer Not Facility Cooperating) Term Loan 3.5 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SCMC for obtaining information through letters and emails dated October 21, 2022 and December 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of SCMC, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SCMC is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SCMC continues to be 'CRISIL D Issuer Not Cooperating'. Incorporated in 1955, Singh Cycle and Motor Co (SCMC) is promoted by Mr. Palvinder singh Bedi based in Pune. The firm is having automobile dealership of Chevrolet range of vehicles and Hero Motorcorp Ltd. (HML) for two wheelers.The firm has two showroom of HML, and two of Chevrolet and specialized work shop across Pune. SKATE TRADES: CRISIL Keeps D Debt Rating in Not Cooperating ----------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Skate Trades and Agencies Private Limited (STAPL) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 13 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with STAPL for obtaining information through letters and emails dated October 21, 2022 and December 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of STAPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on STAPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of STAPL continues to be 'CRISIL D Issuer Not Cooperating'. STAPL, established in 2003, manages a hotel and restaurant in Punjab. In 2015-16 (refers to financial year, April 1 to March 31), STAPL obtained license for liquor wholesale distributorship and retailing of Indian-made foreign liquor (IMFL) and country liquor. STAR ORGANIC: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------ CRISIL Ratings said the ratings on bank facilities of Star Organic Foods Inc (SOFI) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Foreign Bill 3 CRISIL D (Issuer Not Discounting Cooperating) Letter of Credit 1 CRISIL D (Issuer Not Cooperating) Long Term Loan 1.85 CRISIL D (Issuer Not Cooperating) Packing Credit 5 CRISIL D (Issuer Not Cooperating) Proposed Long Term 0.15 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with SOFI for obtaining information through letters and emails dated October 21, 2022 and December 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of SOFI, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SOFI is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SOFI continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Star Organic Foods Inc. (SOFI) is a partnership firm incorporated in 2011 and engaged in exports of shrimps, providing cold storage facilities for the group entities and shrimp pre-processing in addition to sale to local traders for shrimp exports. The entity was initially involved in trading of organic fruits in addition to shrimps till April 2011. The firm is located in Nellore, Andhra Pradesh (AP). SUN ARK: CRISIL Keeps D Debt Ratings in Not Cooperating Category ---------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Sun Ark Aluminium Industries Private Limited (SAIPL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 3 CRISIL D (Issuer Not Cooperating) Letter of Credit 9 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SAIPL for obtaining information through letters and emails dated October 21, 2022 and December 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of SAIPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SAIPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SAIPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Established in 2007, Sun Ark Aluminium Industries Private Limited (SAIPL) manufactures aluminium powder, which find its application in manufacturing refractory moulds and explosives. The operations are currently being managed by Mr. Sivakumar. THERMOSOL GLASS: CRISIL Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Thermosol Glass Private Limited (TGPL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 1 CRISIL D (Issuer Not Cooperating) Bank Guarantee 1.5 CRISIL D (Issuer Not Cooperating) Cash Credit 5 CRISIL D (Issuer Not Cooperating) Cash Credit 8 CRISIL D (Issuer Not Cooperating) Long Term Loan 21.58 CRISIL D (Issuer Not Cooperating) Long Term Loan 7.78 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with TGPL for obtaining information through letters and emails dated October 21, 2022 and December 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of TGPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on TGPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of TGPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. TGPL was incorporated in March 2011 to set up a glass-processing unit in the Kutch district of Gujarat, primarily to supply parabolic mirrors to CSP plants. The unit is estimated to have installed capacity of 1.1 million square metres (sqm) per annum. The project has been commissioned at an estimated cost of INR86.4 crore, funded through debt of around INR46.0 crore, promoters' contribution of around INR28.0 crore, and the remaining through credit from suppliers. External debt is likely to be replaced with contribution from promoters over the medium term. TGPL is a part of Ahmedabad-based Cargo group, and a wholly-owned subsidiary of flagship company, Cargo Motors Pvt Ltd (CMPL). The Cargo group is promoted by Mr Jayant Nanda and his family members. CMPL, established in 1959, is one the largest dealers of commercial vehicles of Tata Motors Ltd (rated 'CRISIL AA-/Stable/CRISIL A1+') in Gujarat. ULTRA TRUST: CRISIL Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Ultra Trust (UT) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 5 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with UT for obtaining information through letters and emails dated October 21, 2022 and December 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward-looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of UT, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on UT is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of UT continue to be 'CRISIL D Issuer Not Cooperating'. UT was set up by Mr K R Arumugam in 1981. Based in Madurai, Tamil Nadu, it offers undergraduate, post-graduate, and diploma courses in pharmacy, nursing, physiotherapy, and engineering. VBS TEXTILES: CRISIL Withdraws B+ Rating on INR43cr Term Loan ------------------------------------------------------------- CRISIL Ratings has withdrawn the ratings on certain bank facilities of VBS Textiles Private Limited (VBS), as: Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 0.25 CRISILA4/Issuer Not Cooperating (Withdrawn) Bank Guarantee 3.86 CRISILA4/Issuer Not Cooperating (Withdrawn) Cash Credit 3 CRISIL B-/Stable/Issuer Not Cooperating (Withdrawn) Term Loan 43 CRISIL B-/Stable/Issuer Not Cooperating (Withdrawn) CRISIL Ratings has been consistently following up with VBS for obtaining information through letters and emails dated January 3, 2023 and January 7, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of VBS. This restricts CRISIL Ratings' ability to take a forward looking view on the credit quality of the entity. CRISIL Ratings believes that rating action on VBS is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the ratings on the bank facilities of VBS to 'CRISIL B-/Stable/CRISIL A4 Issuer not cooperating'. CRISIL Ratings has withdrawn its rating on the bank facilities of VBS on the request of the company and after receiving no objection certificate from the bank. The rating action is in-line with CRISIL Rating's policy on withdrawal of its rating on bank loan facilities. VTPL, incorporated in 2016, is owned and managed by Mr Sukoon Vipool Shah, Mr. Chandu Narandas Patel, Mr Dhiren Kiran Shah, and Ms Shanna Sukoon Shah. The company undertakes processing, dyeing, and printing of fabric with majority being job-work. Facilities are located in Narol, Ahmedabad. VENKATA SRINIVASA: CRISIL Withdraws B Rating on INR8.4cr Loan ------------------------------------------------------------- CRISIL Ratings has withdrawn the ratings on certain bank facilities of Sri Venkata Srinivasa Polymers Private Limited (SVSPL), as: Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 1.2 CRISIL A4/Issuer Not Cooperating (Withdrawn) Cash Credit 8.4 CRISIL B/Stable/Issuer Not Cooperating (Withdrawn) Cash Credit 2.6 CRISIL B/Stable/Issuer Not Cooperating (Withdrawn) Inland/Import 2.0 CRISIL A4/Issuer Not Letter of Credit Cooperating (Withdrawn) Proposed Long Term 0.05 CRISIL B/Stable/Issuer Not Bank Loan Facility Cooperating (Withdrawn) CRISIL Ratings has been consistently following up with SVSPL for obtaining information through letters and emails dated March 14, 2022 and May 9, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of SVSPL. This restricts CRISIL Ratings' ability to take a forward looking view on the credit quality of the entity. CRISIL Ratings believes that rating action on SVSPL is consistent with 'Assessing Information Adequacy Risk'. CRISIL Ratings has continued the ratings on the bank facilities of SVSPL to 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. CRISIL Ratings has withdrawn its rating on the bank facilities of SVSPL on the request of the company and after receiving no objection certificate from the bank. The rating action is in-line with CRISIL Rating's policy on withdrawal of its rating on bank loan facilities. Incorporated in 1996 in Rajam, Andhra Pradesh, SVSPL manufactures plastic packaging material. Operations are managed by the promoters Mr. Janardhana Rao Inuganti, Mr. Rajagopal Chelikani, and Mr. Ramakrishna Inuganti. VENUS GARMENTS: CRISIL Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Venus Garments India Limited (VGIL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Letter of credit 14.91 CRISIL D (Issuer Not & Bank Guarantee Cooperating) Proposed Long Term 3.17 CRISIL D (Issuer Not Bank Loan Facility Cooperating) Term Loan 73.83 CRISIL D (Issuer Not Cooperating) Working Capital 69 CRISIL D (Issuer Not Facility Cooperating) CRISIL Ratings has been consistently following up with VGIL for obtaining information through letters and emails dated October 31, 2022 and December 15, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of VGIL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on VGIL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of VGIL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Incorporated in 1999 and promoted by Mr Anil Jain, VGIL manufactures and exports ready-made garments such as polo shirts, T-shirts, jogging suits, sweat shirts, thermal wear, and sweaters. The company mainly exports to the US, Europe, Mexico, Canada, and other countries. [*] INDIA: Centre Looking at Decriminalising Some IBC Offences -------------------------------------------------------------- The Economic Times of India reports that the government has proposed the decriminalisation of several violations under the Insolvency and Bankruptcy Code (IBC) to further improve the ease of doing business and speed up corporate failure resolution. ET relates that the move is in line with the government's initiative to clean up the statute book to decriminalise minor offences and switch to monetary penalties. A similar process has been carried out in the laws for companies and limited liability partnerships. In a discussion paper floated last week, the ministry of corporate affairs proposed to empower National Company Law Tribunals (NCLTs) and Debt Recovery Tribunals (DRTs) with powers to penalise anyone who violates the IBC, ET says. These violations are currently handled by special courts through criminal proceedings. According to the report, the proposed amendments will apply to violations falling under Section 235A of the IBC, which says criminal proceedings can be initiated against anyone over contraventions for which the code doesn't specify the penalty. Violations such as promoters not cooperating with liquidators or resolution professionals (RPs) filing frivolous cases don't have any penalty prescribed in the code. "In furtherance of the central government's policy to decriminalise offences in business law statutes wherever feasible, it is felt that Section 235A should be converted into a civil penalty," said the discussion paper. Legal experts welcomed such a move, the report notes. ================= I N D O N E S I A ================= CIPUTRA DEVELOPMENT: Fitch Ups LT IDR to 'BB-', Outlook Stable -------------------------------------------------------------- Fitch Ratings has upgraded Indonesia-based property developer PT Ciputra Development Tbk's (CTRA) Long-Term Issuer Default Rating (IDR) to 'BB-' from 'B+'. The Outlook is Stable. Fitch has also upgraded the senior unsecured rating on CTRA's SGD150 million unsecured notes due 2 February 2026 to 'BB-' from 'B+'. The 'BB-' Long Term IDR and Stable Outlook reflects its view that CTRA will maintain its annual attributable contracted sales, excluding minorities' share, above IDR5 trillion over the medium term. This is supported by CTRA's well-diversified contracted sales mix and land bank across several key cities, projects and price points, allowing CTRA to nimbly cater to changing consumer preferences. Consequently, Fitch expects the company can navigate softer housing-demand this year amid rising inflation and interest rates. The rating is also supported by CTRA's exceptionally strong balance sheet, which provides the company with significant financial flexibility. KEY RATING DRIVERS Steady Contracted Sales: Fitch forecasts CTRA to achieve attributable annual contracted sales of around IDR5.3 trillion-5.5 trillion in 2023-2024, despite a moderating outlook for housing demand amid rising interest rates and higher inflation in the next 12 months. Domestic banks have so far remained supportive of mortgage loans with mortgage interest-rates rising by around 25bp in 2022, against a 200bp hike in Bank Indonesia's reference rates. The majority of contracted sales in 2022 were paid through mortgages (62%), with cash (21%) and instalments (18%) making up the rest. Fitch thinks CTRA's exceptionally low leverage (net debt/net property assets) in the low single digits, positions it well to mitigate a slowdown in mortgage-funded contracted sales if domestic banks' appetites wane in the near term. The company can offer customers in-house instalment schemes instead to finance home sales, which will raise leverage somewhat but should allow CTRA to remain well within the sensitivities for its 'BB-' rating. VAT Rebate Expiry Neutral: Fitch thinks CTRA's contracted sales will be resilient after the expiry of the Indonesian government's VAT rebate on home sales in September 2022. The majority of CTRA's strong contracted sales performance in 3Q22 did not use the incentive, which supports its view that increases in underlying housing demand are less reliant on government incentives. Diversified Sales Mix: Fitch believes that CTRA's geographic and product diversification increase the stability of its contracted sales. Geographic diversification benefited contracted sales in 2022, with declining contracted sales in Greater Jakarta offset by increased sales in Sulawesi and Greater Surabaya. CTRA's exposure to low, mid and high-end products also provides flexibility to tailor its housing supply to market demand. Mid to high-end products greater than IDR2 billion were responsible for the majority of sales growth in 2022. Leverage Remains Low: Fitch forecasts CTRA's leverage to rise but remain below 10% in 2023 (end-September 2022: 3%). The consolidated cash balance was significant at around IDR8.4 trillion at end-September 2022, and Fitch estimates it was about IDR8 trillion excluding the share of minorities. However, Fitch expects the company to remain disciplined when deploying this cash. Uses of cash will include a measured development of new shopping malls and hospitals in its existing townships, a moderate increase in dividends and a gradual repayment of gross debt. Negative Free Cash Flow: Fitch expects CTRA will generate negative free cash flow (FCF) in 2023 and 2024. This is based on Fitch's estimates of a moderation in contracted sales, higher capex and slower cash collections, assuming that some customers switch from mortgage funding to cash instalments. Increasing Non-Development Revenue: Fitch forecasts non-development revenue will increase to 21% of total revenue in 2024 from 17% in 2021. Fitch forecasts shopping mall and hotel revenue will continue to improve in 2023. Shopping mall revenue rose by 38% yoy to end-September 2022 as Covid-19-related rental discounts were removed, and hotel revenue rose by 84% yoy on the return of domestic business travel, the main driver of demand for CTRA's hotels. Fitch expects hospital-related revenue will normalise to a lower level as result of the reduction in Covid-related healthcare services. Large Land Bank, Joint-Operations: CTRA owns a land bank of over 2,200 hectares, with a larger presence in the main urban areas of Greater Jakarta and Greater Surabaya. The large land bank provides CTRA with the flexibility and assurance that it can continue to develop projects in the long term. The company also develops projects with other land owners on a profit- or revenue-sharing basis. It reports joint operations on a proportionally consolidated basis, while Fitch proportionally consolidates its key joint ventures (JV) - reported using the equity method - when calculating credit metrics. DERIVATION SUMMARY CTRA's rating compares well with that of Indonesia-based PT Pakuwon Jati Tbk (PWON, BB/Stable) and PT Bumi Serpong Damai Tbk (BSD, BB-/Stable), as well as Vietnam-based BIM Land Joint Stock Company (B/Stable). PWON is one of Indonesia's leading shopping-mall owners and is also a mixed-use property developer. The majority of its operating cash flow is derived from its portfolio of shopping malls, hotels and offices. PWON is rated one notch higher than CTRA because of its substantial non-development cash flow, which supports its credit metrics during periods of weak property demand. This recurring income offsets risks stemming from PWON's smaller property development business, which is also prudently managed, with most of the construction funded by contracted sales rather than debt. CTRA and BSD are rated at the same level. Fitch forecasts CTRA's attributable contracted sales of between IDR5.3 trillion-5.5 trillion in 2023 and 2024 will remain below BSD's attributable contracted sales of around IDR6 trillion. CTRA's somewhat smaller scale is offset by its greater geographic diversification, as the majority of BSD's contracted sales are generated from the Tangerang region in Greater Jakarta. Both BSD and CTRA maintain low leverage and have strong liquidity. CTRA is rated two notches higher than BIM Land which reflects CTRA's exposure to residential development cash flow and its greater diversification. Around 30%-40% of BIM Land's sales are derived from tourism-led properties, such a condotels and rental villas, where the demand is more cyclical than residential units. In addition, BIM Land's geographic diversification is weaker with contracted sales mostly concentrated in northern Vietnam in the next few years. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer: - Attributable contracted sales (excluding minority interests' share) of IDR5.3 trillion in 2023 and IDR5.4 trillion in 2024; - Attributable land acquisition spending of around IDR400 billion in 2023 and 2024; - Capex of around IDR600 billion in 2023 and IDR1 trillion in 2024; - Dividends increasing to between IDR400 billion-450 billion in 2023 and 2024. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: - Fitch does not expect positive rating action in the next 24 months, as CTRA's attributable contracted sales should remain steady. Over the longer term, a significant and sustained increase in attributable contracted sales while maintaining a conservative financial profile could lead to a rating upgrade. Factors that could, individually, or collectively, lead to negative rating action/downgrade: - Annual attributable contracted sales sustained below IDR5.0 trillion; - Net debt/net property assets above 40% for a sustained period. LIQUIDITY AND DEBT STRUCTURE Strong Liquidity, Diversified Funding: CTRA reported IDR8.4 trillion of consolidated cash and cash equivalents as of end-September 2022 and a Fitch-estimated IDR8 trillion excluding minorities' share, as well as significant committed undrawn construction lines. This is more than sufficient to cover the IDR1.2 trillion of short-term debt maturities. The short-term maturities include working capital funding of IDR620 billion, which Fitch expects will be rolled over by lenders in the normal course of business. CTRA has good access to its domestic bank market and its funding sources are well diversified. Only 17% of its outstanding debt is foreign currency denominated, consisting of its SGD150 million of medium-term notes maturing in February 2026. The foreign currency debt is partially hedged using call spread options with strike rates between IDR/SGD 10,720 and 12,350 (end-2022: SGD1=IDR11,608). ISSUER PROFILE CTRA is a leading Indonesian homebuilder with a land bank of over 2,200 hectares well-spread across several areas in the country. It is also one of the most diversified Indonesian homebuilders with over 80 projects in 34 cities, and contracted sales spread across low, mid and upper-income customer segments. 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. Entity/Debt Rating Prior ----------- ------ ----- PT Ciputra Development Tbk LT IDR BB- Upgrade B+ senior unsecured LT BB- Upgrade B+ ===================== N E W Z E A L A N D ===================== AUTHENTIC BEVERAGE: Creditors' Proofs of Debt Due on March 1 ------------------------------------------------------------ Creditors of Authentic Beverage International Limited are required to file their proofs of debt by March 1, 2023, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Jan. 19, 2023. The company's liquidators are: Simon Dalton Benjamin Francis Gerry Rea Partners PO Box 3015 Auckland CITY & SUBURB: Court to Hear Wind-Up Petition on Feb. 7 ------------------------------------------------------- A petition to wind up the operations of City & Suburb Property Inspections (2014) Limited will be heard before the High Court at Wellington on Feb. 7, 2023, at 10:00 a.m. Daniel Paul Wai-Poi and Catherine Migden-Ostrander filed the petition against the company on Nov. 18, 2022. The Petitioner's solicitor is: Michael Wolff Morrison Kent Lawyers Floor 19, 105 The Terrace Wellington PROVEN CONCEPTS: Creditors' Proofs of Debt Due on Feb. 20 --------------------------------------------------------- Creditors of Proven Concepts Limited are required to file their proofs of debt by Feb. 20, 2023, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Jan. 17, 2023. The company's liquidator is: Brent Thomas Dickins CS Insolvency c/ Coombe Smith (PN) Limited 168 Broadway Avenue PO Box 788 Palmerston North Q CARD TRUST: Fitch Affirms 'Bsf' Rating on Class F Notes --------------------------------------------------------- Fitch Ratings has affirmed the ratings on notes issued by The New Zealand Guardian Trust Company Limited in its capacity as trustee of Q Card Trust. The transaction, a securitisation of New Zealand credit card receivables, is an asset-backed note programme featuring a multiclass structure that purchases eligible receivables from related entities of Humm Group Limited (hummgroup) on a revolving basis. Entity/Debt Rating Prior ----------- ------ ----- Q Card Trust A-2021-1 NZFPFD1040R2 LT AAAsf Affirmed AAAsf A-2021-2 NZFPFD1041R0 LT AAAsf Affirmed AAAsf A-2021-3 NZFPFD1042R8 LT AAAsf Affirmed AAAsf A-2021-4 NZFPFD1043R6 LT AAAsf Affirmed AAAsf A-2022-1 NZFPFD1044R4 LT AAAsf Affirmed AAAsf B-2018-1 NZFPFD1025R3 LT AAsf Affirmed AAsf B-2019-1 NZFPFD1031R1 LT AAsf Affirmed AAsf B-2019-2 NZFPFD1035R2 LT AAsf Affirmed AAsf C-2018-1 NZFPFD1026R1 LT Asf Affirmed Asf C-2019-1 NZFPFD1032R9 LT Asf Affirmed Asf C-2019-2 NZFPFD1036R0 LT Asf Affirmed Asf D-2018-1 NZFPFD1027R9 LT BBBsf Affirmed BBBsf D-2019-1 NZFPFD1037R8 LT BBBsf Affirmed BBBsf E-2018-1 NZFPFD1028R7 LT BBsf Affirmed BBsf E-2019-1 NZFPFD1038R6 LT BBsf Affirmed BBsf F-2018-1 NZFPFD1029R5 LT Bsf Affirmed Bsf F-2019-1 NZFPFD1039R4 LT Bsf Affirmed Bsf VFN LT AAAsf Affirmed AAAsf KEY RATING DRIVERS Stable Steady-State Performance: Historical performance has been stable over the last 12 months. As of end-December 2022, 12-month average gross charge-offs were 3.8% compared with 4.1% at end-December 2021. The monthly payment rate (MPR), a measure of how quickly consumers are paying off their credit-card debt, increased slightly to 11.2% in the last 12 months, from 11.0%. Yield has decreased slightly to a 12-month average of 20.2% from 20.9% for the previous period. Fitch expects card performance to be supported by New Zealand's continued economic growth. Fitch forecasts GDP to expand by 2.1% in 2022. GDP growth should normalise to 1.5% in 2023. A summary of the steady states and rating stresses is shown below, these remain unchanged from the last review: Charge-offs: 4.5% MPR: 7.5% Gross yield: 17.00% Purchase rate: 100% Rating Stresses: Ratings: AAAsf / AAsf / Asf / BBBsf / BBsf / Bsf Charge-offs (increase): 4.75x / 4.00x / 3.10x / 2.40x / 1.90x / 1.30x MPR (% decrease): 35.00% / 30.00% / 25.00% / 20.00% / 10.00% / 5.00% Gross yield (% decrease): 35.00% / 30.00% / 25.00% / 20.00% / 15.00% / 10.00% Purchase rate (% decrease): 90.00% / 85.00% / 75.00% / 65.00% / 55.00% / 45.00% Originator and Servicer Risk Mitigated: Fitch reviewed hummgroup's originating and servicing capabilities and found that the operations were comparable with those of other credit card providers in Australia and New Zealand. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: The transaction's performance may be affected by changes in market conditions and the economic environment. Weakening asset performance is strongly correlated with increasing levels of delinquencies and defaults that could reduce credit enhancement available to the notes. Downgrade Sensitivity: Fitch evaluated the sensitivity of the ratings to decreased yields, increased charge-offs and decreased MPRs over the life of the transaction. The model indicates that note ratings are sensitive to an increase in defaults and a reduction in MPRs, with less sensitivity to lower yields. Factors that could, individually or collectively, lead to positive rating action/upgrade: An improvement in long-term asset performance, such as decreased charge-offs, increased MPR or increased portfolio yield, driven by a sustainable positive change of underlying asset quality, would contribute to positive revisions in Fitch's asset assumptions. This could positively affect the notes' ratings. Increased credit enhancement ratios, which are able to fully compensate for credit losses and cash flow stresses commensurate with higher rating scenarios, all else being equal, would also be positive for the ratings. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information or reviewed that origination files as part of its ongoing monitoring. As part of its ongoing monitoring Fitch reviewed a small targeted sample of hummgroup's origination files and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the agency about the asset portfolio. 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. SKY STONE: Court to Hear Wind-Up Petition on Feb. 24 ---------------------------------------------------- A petition to wind up the operations of Sky Stone Sunnynook Central Limited will be heard before the High Court at Auckland on Feb. 24, 2023, at 10:45 a.m. Xiuzhi Liu filed the petition against the company on Sept. 30, 2022. The Petitioner's solicitor is: Vivian Zhang Room 4A, Block 5010 Lane 1881, Huqingping Road Qingpu District Shanghai China STREAMLAND TECHNOLOGY: Court to Hear Wind-Up Petition on March 31 ----------------------------------------------------------------- A petition to wind up the operations of Streamland Technology Service Limited will be heard before the High Court at Auckland on March 31, 2023, at 10:45 a.m. Qian Yu filed the petition against the company on Dec. 20, 2022. The Petitioner's solicitor is: K. H. Morrison Meredith Connell Level 7, 8 Hardinge Street Auckland ================= S I N G A P O R E ================= ERC PRIME: Creditors' Proofs of Debt Due on Feb. 24 --------------------------------------------------- Creditors of ERC Prime Pte. Ltd. and ERC Prime III Pte. Ltd. are required to file their proofs of debt by Feb. 24, 2023, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Jan. 18, 2023. The company's liquidators are: Timothy James Reid Ng Yau Yee Theresa c/o Baker Tilly Reid 600 North Bridge Road #05-01 Parkview Square Singapore 188778 KIAUW HIN: Creditors' Proofs of Debt Due on March 1 --------------------------------------------------- Creditors of Kiauw Hin & Company (Pte) Limited are required to file their proofs of debt by March 1, 2023, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Jan. 18, 2023. The company's liquidator is: Ng Suan Chiok C/O Wee Koon San & Co Pac 2 Venture Drive #11-18 Vision Exchange Singapore 608526 NEW MILLENIUM: Court to Hear Wind-Up Petition on Feb. 10 -------------------------------------------------------- A petition to wind up the operations of New Millenium Construction Pte Ltd will be heard before the High Court of Singapore on Feb. 10, 2023, at 10:00 a.m. Maybank Singapore Limited filed the petition against the company on Jan. 18, 2023. The Petitioner's solicitors are: M/s Advent Law Corporation 111 North Bridge Road #25-03 Peninsula Plaza Singapore 179098 XYPHER PTE: Court to Hear Wind-Up Petition on Feb. 10 ----------------------------------------------------- A petition to wind up the operations of Xypher Pte Ltd will be heard before the High Court of Singapore on Feb. 10, 2023, at 10:00 a.m. Maybank Singapore Limited filed the petition against the company on Jan. 18, 2023. The Petitioner's solicitors are: Shook Lin & Bok LLP 1 Robinson Road #18-00, AIA Tower Singapore 048542 ================= S R I L A N K A ================= SRI LANKA: China Offers Debt Moratorium; IMF Help Still in Doubt ---------------------------------------------------------------- Reuters reports that the Export-Import Bank of China has offered Sri Lanka a two-year moratorium on its debt and said it would support the country's efforts to secure a $2.9 billion loan from the International Monetary Fund, according to a letter reviewed by Reuters. Regional rivals China and India are the biggest bilateral lenders to Sri Lanka, a country of 22 million people that is facing its worst economic crisis in seven decades, Reuters says. According to Reuters, India wrote to the IMF earlier this month, saying it would commit to supporting Sri Lanka with financing and debt relief, but the island nation also needs the backing of China in order to reach a final agreement with the global lender. However, China's Jan. 19 letter, sent to the finance ministry, may not be enough for Sri Lanka to immediately gain the IMF's approval for the critical loan, Sri Lankan sources with knowledge of the matter said. According to the letter, China EximBank said it was going to provide "an extension on the debt service due in 2022 and 2023 as an immediate contingency measure" based on Sri Lanka's request, Reuters relays. "You will not have to repay the principal and interest due of the bank's loans during the above-mentioned period," the letter said, adding China EximBank wanted to expedite the negotiation process with your side regarding medium and long-term debt treatment in this period. By end-2020, Sri Lanka owed China EximBank $2.83 billion or 3.5% of the island's external debt, Reuters discloses citing IMF data. In total, Sri Lanka owed Chinese lenders $7.4 billion, or nearly a fifth of public external debt, by end-2022, calculations by the China Africa Research Initiative showed. "The bank will support Sri Lanka in your application for the IMF Extended Fund Facility (EFF) to help relieve the liquidity strain," China's letter added. An IMF spokeswoman confirmed the IMF's management received India's commitment but did not comment on the Chinese letter, Reuters adds. Sri Lanka's foreign and finance ministries and China's foreign ministry did not respond to questions from Reuters. One Sri Lankan source, who asked not to be identified because of the sensitivity of the confidential discussions, said the country had hoped for a clear assurance from Beijing along the lines of what India provided to the IMF, according to Reuters. "China was expected to do more," the source said, "This is much less than what is required and expected of them." In a letter directly addressed to the IMF, India said last week that the financing or debt relief provided by Export-Import Bank of India would be consistent with restoring debt sustainability under the IMF-supported program, Reuters says. Another government source with direct knowledge of the talks told Reuters that Sri Lanka would likely share China's letter with the IMF and seek their opinion on its contents to gauge if stronger assurances were needed. Comparing the letters showed that India's was "comprehensive" in acknowledging debt restructuring parameters from the IMF for middle-income countries such as Sri Lanka, another person with knowledge of the debt discussions added. Meanwhile China's letter only points to a rebuilding of foreign exchange reserves being key for Sri Lanka without referencing ratios for debt and financing needs, the person said. "The fact that China's letter could be acceptable to the IMF will be watched very closely by all private creditors," said the person on condition of anonymity, Reuters relays. It is unclear what debt relief major lenders such as China - the world's largest bilateral lender - and India are willing to make further down the line. According to Reuters, western countries such as the United States and multilateral lenders are pressing Beijing to offer debt relief to emerging economies in distress, and have criticised Beijing for slow progress. However, news from Zambia on Jan. 23 suggests China could be playing a more proactive role. Speaking in the capital Lusaka, the head of the International Monetary Fund Kristalina Georgieva said the lender had reached an understanding in principle with China about a debt restructuring strategy. China will de facto accept NPV (net present value) reduction on the basis of significant stretching of the maturities and reduction of interest, Ms. Georgieva said. Sri Lanka's central bank chief P. Nandalal Weerasinghe said on Jan. 24 the country hoped to complete its debt restructuring in six months, Reuters notes. About Sri Lanka Sri Lanka, formerly known as Ceylon and officially the Democratic Socialist Republic of Sri Lanka, is an island country in South Asia. It lies in the Indian Ocean, southwest of the Bay of Bengal, and southeast of the Arabian Sea; it is separated from the Indian subcontinent by the Gulf of Mannar and the Palk Strait. Sri Lanka shares a maritime border with India and the Maldives. Sri Jayawardenepura Kotte is its legislative capital, and Colombo is its largest city and financial centre. Sri Lanka has been mired in turmoil amid surging inflation, a plummeting currency and an economic crisis that has left the country short of the hard currency it needs to import food and fuel, according to Bloomberg News. Public anger has boiled over into violent protests and led the government to announce in April 2022 it would halt payments on its US$12.6 billion pile of foreign debt to preserve cash for essential goods. That marks the nation's first sovereign debt default since it gained independence from Britain in 1948, Bloomberg said. Its bonds are among the worst performers in the world in 2022 and trade deep in distressed territory, with holders bracing for losses approaching 60 cents on the dollar. Sri Lanka's crisis sparked months of mass protests and eventually forced then president Gotabaya Rajapaksa to flee the country. On July 20, 2022, Ranil Wickremesinghe was elected as Sri Lanka's new head of state backed by a majority of lawmakers from ousted leader Gotabaya Rajapaksa's party. Sri Lanka is in talks with the International Monetary Fund for a bailout and needs to negotiate a debt restructuring with creditors. As reported in the Troubled Company Reporter-Asia Pacific in December 2022, Fitch Ratings has downgraded Sri Lanka's Long-Term Local-Currency Issuer Default Rating (IDR) to 'CC', from 'CCC', and has affirmed the Long-Term Foreign-Currency IDR at 'RD' (Restricted Default). Fitch typically does not assign Outlooks to ratings of 'CCC+' or below. Fitch has also removed the Long-Term Local-Currency IDR from Under Criteria Observation, on which it was placed on July 14, 2022, following the publication of the updated Sovereign Rating Criteria. ********* 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 2023. 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 ***