/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/230518.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, May 18, 2023, Vol. 26, No. 100 Headlines A U S T R A L I A AERCO MOUNT: Second Creditors' Meeting Set for May 22 CLADTECH AUSTRALIA: Second Creditors' Meeting Set for May 22 CONVERGENCE.TECH: Second Creditors' Meeting Set for May 23 GLOZA PTY: Second Creditors' Meeting Set for May 22 KUDOS GROUP: First Creditors' Meeting Set for May 22 LIBERTY FUNDING 2023-1: Moody's Assigns (P)B2 Rating to F Notes PROVIDOOR PTY: Owes AUD4.4 Million in Unredeemed Gift Cards I N D I A A C POLYCOATERS: CARE Keeps B- Debt Rating in Not Cooperating AMMA CONSTRUCTION: CRISIL Reaffirms B+ Rating on INR3.5cr Loan APOLLO POLYVINYL: Insolvency Resolution Process Case Summary ATUL BUILDERS: Ind-Ra Withdraws BB+ Long Term Issuer Rating BALAJI MOTORS: CARE Lowers Rating on INR12.19cr LT Loan to B- BALAJI SAHAKARI: CARE Keeps D Debt Rating in Not Cooperating BIYANI SHIKSHAN: CRISIL Moves D Debt Rating from Not Cooperating BLAZE PROMOTERS: Insolvency Resolution Process Case Summary BSCPL INFRA: CARE Reaffirms D Rating on INR393.29cr LT Loan DAS PROCESSORS: CARE Lowers Rating on INR4.0cr LT Loan to B- DEEM CONSTRUCTION: Insolvency Resolution Process Case Summary FIZA POLYMERS: Insolvency Resolution Process Case Summary GANPATI MOULDERS: CARE Keeps B- Debt Ratings in Not Cooperating GATI INFRASTRUCTURE: Insolvency Resolution Process Case Summary GEETA TEXTILE: CARE Keeps D Debt Rating in Not Cooperating GO FIRST: Lessor Seeks Directions From Court to Retrieve Aircraft HANUMAN TRUST: CRISIL Reaffirms B- Rating on INR59.5cr Term Loan HIND PLASTIC: CARE Lowers Rating on INR8cr LT Loan to B- J R MODI: Insolvency Resolution Process Case Summary JAI GURUDEV: CARE Keeps C Debt Rating in Not Cooperating JOHAR AUTOMOBILES: CRISIL Lowers Rating on INR6cr Loan to D KETAKI SANGAMESHWAR: CARE Keeps B- Debt Rating in Not Cooperating KRISHNENDU BHAKTA: CARE Keeps B- Debt Rating in Not Cooperating MADHYA BHARAT: CARE Reaffirms B+ Rating on INR8.10cr LT Loan MARVEL REALTORS: NCLAT Closes Insolvency Proceedings Against Firm MET-ROLLA IRON: CRISIL Hikes Rating on INR1cr Cash Loan to B+ METRO ECO: CARE Keeps D Debt Rating in Not Cooperating Category NAHAR LOGISTICS: CARE Lowers Rating on INR7.17cr LT Loan to B- NAMAN BROADCASTINGS: Insolvency Resolution Process Case Summary NAVNIT AUTOSPARES: CARE Keeps D Debt Rating in Not Cooperating PRASANTHI CASHEW: CRISIL Reaffirms B- Rating on INR50cr Loan PROGNOSYS MEDICAL: CRISIL Reaffirms B- Rating on INR4cr Cash Loan PUNJAB RENEWABLE: Ind-Ra Affirms BB+ Long Term Issuer Rating QUALIT AGRO: CRISIL Lowers Rating on INR13cr LOC to D SADGURU POLY: CARE Keeps B- Debt Rating in Not Cooperating SAKSHAM FOOD: CARE Lowers Rating on INR3.36cr LT Loan to B SULAV FLOUR: CRISIL Lowers Rating on INR5.5cr Term Loan to B THYME & REASON: Insolvency Resolution Process Case Summary VIKAS PROCON: Insolvency Resolution Process Case Summary VISHWANATH SINGH: CARE Keeps B- Debt Ratings in Not Cooperating ZESTMONEY: To Secure New Funding After Founders Resign N E W Z E A L A N D BTZQ LIMITED: Creditors' Proofs of Debt Due on June 3 CONSTRUCT CIVIL: Creditors' Proofs of Debt Due on July 10 HERKT BROZ: Creditors' Proofs of Debt Due on June 30 NEW ZEALAND: Construction Insolvencies up 53% Year-on-Year READY TO EAT: Court to Hear Wind-Up Petition on May 22 TAURUS INTERIORS: Court to Hear Wind-Up Petition on May 26 P H I L I P P I N E S DITO TELECOMMUNITY: PHP64 Billion in Loans Falling Due on May 26 S I N G A P O R E BARCLAYS CAPITAL: Members' Final Meeting Set for June 16 DIGITAL ALPHA: Court to Hear Wind-Up Petition on June 12 DRINIFINI BEVERAGES: Court to Hear Wind-Up Petition on May 26 GLOBAL ADVENTURE: Members' Final Meeting Set for June 15 SARAFIELD INVESTMENTS: Creditors' Proofs of Debt Due on June 19 V I E T N A M NGHI SON: At Risk of Shutdown With Debt Talks Stalled X X X X X X X X EKO AIR: Insolvency Resolution Process Case Summary - - - - - ================= A U S T R A L I A ================= AERCO MOUNT: Second Creditors' Meeting Set for May 22 ----------------------------------------------------- A second meeting of creditors in the proceedings of Aerco Mount Isa Pty Ltd has been set for May 22, 2023 at 10:30 a.m. at Level 1, 160 Brisbane Street in Ipswich and via Microsoft Teams. 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 May 21, 2023 at 5:00 p.m. Adam Francis Ward and Michael Griffin of Worrells Solvency & Forensic Accountants were appointed as administrators of the company on April 3, 2023. CLADTECH AUSTRALIA: Second Creditors' Meeting Set for May 22 ------------------------------------------------------------ A second meeting of creditors in the proceedings of Cladtech Australia Pty Ltd has been set for May 22, 2023 at 2:30 p.m. at the offices of Hamilton Murphy Advisory at Level 21, 114 William Street in Melbourne 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 May 19, 2023 at 4:00 p.m. Leigh Dudman of Hamilton Murphy Advisory was appointed as administrator of the company on April 14, 2023. CONVERGENCE.TECH: Second Creditors' Meeting Set for May 23 ---------------------------------------------------------- A second meeting of creditors in the proceedings of Convergence.Tech Australia (Aus) Pty Ltd has been set for May 23, 2023 at 10:30 a.m. via Microsoft Teams video conferencing. 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 May 19, 2023 at 4:00 p.m. Shane Justin Cremin and Brent Leigh Morgan of Rodgers Reidy were appointed as administrators of the company on April 6, 2023. GLOZA PTY: Second Creditors' Meeting Set for May 22 --------------------------------------------------- A second meeting of creditors in the proceedings of Gloza Pty Ltd has been set for May 22, 2023 at 11:30 a.m. at the offices of O'Brien Palmer at Level 9, 66 Clarence Street in Sydney. 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 May 19, 2023 at 4:00 p.m. Daniel John Frisken of O'Brien Palmer was appointed as administrator of the company on April 14, 2023. KUDOS GROUP: First Creditors' Meeting Set for May 22 ---------------------------------------------------- A first meeting of the creditors in the proceedings of Kudos Group Pty Ltd will be held on May 22, 2023, at 3:00 p.m. via virtual meeting only. Bruce Gleeson of Jones Partners Insolvency & Restructuring was appointed as administrators of the company on May 10, 2023. LIBERTY FUNDING 2023-1: Moody's Assigns (P)B2 Rating to F Notes --------------------------------------------------------------- Moody's Investors Service has assigned provisional ratings to notes to be issued by Liberty Funding Pty Ltd in respect of Liberty Series 2023-1 Auto. Issuer: Liberty Funding Pty Ltd in respect of the Liberty Series 2023-1 Auto AUD375.00 million Class A Notes, Assigned (P)Aaa (sf); AUD42.50 million Class B Notes, Assigned (P)Aa2 (sf); AUD22.50 million Class C Notes, Assigned (P)A2 (sf); AUD12.50 million Class D Notes, Assigned (P)Baa2 (sf); AUD19.00 million Class E Notes, Assigned (P)Ba2 (sf); AUD10.50 million Class F Notes, Assigned (P)B2 (sf); The AUD 18.00 million Class G Notes are not rated by Moody's. The transaction is a securitisation of a portfolio of Australian consumer and commercial auto loans originated by Liberty Financial Pty Ltd (Liberty, unrated). This is Liberty's thirteenth auto asset backed securities (ABS) transaction and its first transaction for 2023. Liberty is an Australian non-bank lender that started originating non-conforming residential mortgages in 1997. It subsequently expanded into prime residential mortgage origination, as well as, among others, auto loans, small commercial mortgage loans and personal loans. As of December 2022, Liberty had total receivables of AUD13 billion. RATINGS RATIONALE The provisional ratings take into account, among other factors: The evaluation of the underlying receivables and their expected performance; Historical loss data. Liberty provided vintage historical data on gross defaults and net losses from 2010 to 2022; The credit enhancement provided by note subordination, the guarantee fee reserve and excess spread; The liquidity facility in the amount of 2.00% of the principal balance of the rated notes, subject to a floor of AUD600,000; The interest rate swap provided by National Australia Bank Limited (NAB, Aa3/P-1/Aa2(cr)/P-1(cr)). According to Moody's, the transaction benefits from various credit strengths such as a high proportion of motor vehicles, a highly granular portfolio and a guarantee fee reserve account. However, Moody's notes that the transaction features some credit weaknesses such as the proportion of the portfolio extended to borrowers with prior credit impairment and the pro-rata amortisation of rated notes under certain conditions. Key transactional features are as follows: The Class A, Class B, Class C, Class D, Class E and Class F Notes are supported by 25.00%, 16.50%, 12.00%, 9.50%, 5.70% and 3.60% of note subordination, respectively. Principal collections will be at first distributed sequentially. Starting from the first anniversary from closing, all notes (excluding the Class G Notes) may participate in proportional principal collections distribution, subject to the step down conditions being satisfied. The step down conditions include, among others, no charge-offs on any of the notes, 90 days arrears ratio of less than or equal to 4.00%, the subordination percentage to the Class A Notes being greater than or equal to 35.0% as well as cumulative default ratio tests. The transaction will revert to a sequential principal repayment once the aggregate principal balance of the notes is 10.0% or less of the aggregate principal balance of the notes at closing, or on or following the payment date in May 2027. The guarantee fee reserve account, which is unfunded at closing and will accumulate to a maximum limit of the greater of 2.0% of principal balance of notes on determination date and 0.8% of the invested amount at issuance. The guarantee fee reserve account will firstly be available to meet losses on the loans and charge-offs against the notes. Secondly, it can be used to cover any required payment shortfalls that remain after liquidity facility and principal draws. Key model and portfolio assumptions: Moody's portfolio credit enhancement ("PCE") -- representing the loss that Moody's expects the portfolio to suffer in the event of a severe recession scenario -- is 26.0%. Moody's mean expected default rate for this transaction is 6.0% and the assumed recovery rate is 37.5%. Moody's assumed default rate and recovery rate are stressed compared to the historical levels of 4.86% (based on origination vintages from 2010 to 2022) and 53.01% respectively. In determining the mean default rate, Moody's gave more weight to the historical performance of recent vintages because these vintages are more reflective of the credit quality of the current portfolio with lower levels of credit impaired borrowers than vintages prior. The stress Moody's has applied in determining its mean default rate reflects the lack of economic stress during the historical data period. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Moody's Global Approach to Rating Auto Loan- and Lease-Backed ABS" published in November 2022. Factors that would lead to an upgrade or downgrade of the ratings: Factors that could lead to an upgrade of the notes include a rapid build-up of credit enhancement due to sequential amortisation or better-than-expected collateral performance. The Australian job market is a primary driver of performance. Factors that could lead to a downgrade of the notes is worse-than-expected collateral performance, poor servicing, error on the part of transaction parties, a deterioration in the credit quality of transaction counterparties, or lack of transactional governance or fraud. PROVIDOOR PTY: Owes AUD4.4 Million in Unredeemed Gift Cards ----------------------------------------------------------- SmartCompany reports that gourmet meal delivery platform Providoor reportedly owed nearly AUD4.4 million to gift card holders when it entered external administration late last month, highlighting the difficulty for unsecured creditors to recover funds after a company collapse. Providoor, founded in April 2020 to support high-end restaurants through COVID-19 restrictions, offered ready-made meals to customers across Melbourne, Sydney, Brisbane, and the Australian Capital Territory, SmartCompany says. Unlike platforms like Uber Eats, Providoor allowed big-name venues like Rockpool, Entrecote, and founder Shane Delia's own Maha to ship meals for customers to prepare at home. SmartCompany relates that the enterprise generated AUD74 million in revenue for its restaurant partners over its first 18 months. However, the wind-back of pandemic restrictions, changing market conditions, and what Delia described as dwindling investor sentiment saw the business stumble in April this year. "I created Providoor during lockdown, when the hospitality world was in disarray and we needed to find a way to survive," the report quotes Mr. Delia as saying after shuttering the business. "Providoor meant we could secure and create jobs as well as give people a little bit of restaurant joy during a pretty dismal time. "I just wish [Providoor] had been given the opportunity to work through the challenging economic conditions, the same facing so many in the restaurant and hospitality sector right now," he added. The business appointed Jonathon Colbran and Tristana Steedman of RSM as liquidators, who said Providoor's closure would affect 16 employees and 50 partner restaurants. An assessment of Providoor's financial situation revealed it held debts of up to AUD6.3 million at the time of its collapse, including AUD4.4 million in unredeemed gift cards, The Sydney Morning Herald reports, according to SmartCompany. Those card-holders are likely to classify as unsecured creditors, meaning major stakeholders in the business will see their debts recouped before everyday diners - if they regain those funds at all. "Based on our initial assessment of Providoor's financial position, there is presently insufficient money to pay a dividend to creditors or provide refunds to customers, including gift card holders," SmartCompany quotes Mr. Colbran as saying on April 28. Speaking to 3AW radio host Neil Mitchell on May 16, Delia apologised to Providoor customers left with vouchers they can't redeem. "It's not fair," Mr. Delia said. "It's definitely not fair. I'm outraged that people have been put in this position. I'm gutted that Providoor has been put in this position. According to SmartCompany, the Australian Competition and Consumer Commission (ACCC) states gift card holders can ask their banks to enact a charge-back on gift card payments in an attempt to claw back funds. However, charge-backs are generally subject to time limits. In a statement, RSM advised Providoor customers to immediately contact their financial institution to enquire about charge-backs. Gift card holders can also contact the liquidators directly, the report adds. Jonathan Colbran and Tristana Steedman from RSM Australia Partners on April 28, 2023, appointed Liquidators for Providoor (Aus) Pty Ltd, an online food preparation and delivery service operating in Melbourne, Sydney and Canberra. ========= I N D I A ========= A C POLYCOATERS: CARE Keeps B- Debt Rating in Not Cooperating ------------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of A C Polycoaters Private Limited (ACPPL) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.00 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 0.40 CARE A4; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Rationale and Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated May 18, 2022, placed the rating(s) of ACPPL under the 'issuer non-cooperating' category as ACPPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. ACPPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated April 3, 2023, April 13, 2023, April 23, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). A C Polycoaters Private Limited (ACP), an ISO 9001:2008 certified private limited company was incorporated in June, 2009 and is currently being managed by Mr. Narender Kumar Arora and Mr. Manmohan Chawla. The company is engaged in manufacturing of coated textile fabric at its manufacturing facility located at Bahadurgarh, Haryana Besides ACP, the promoters are also associated with group concern namely, Arora Vinyl Private Limited (AVP) is a private limited company, incorporated in 1996 and is engaged in manufacturing of coated textile fabric and Rajdhani Rexin Store (RRS) is a proprietorship firm established in 1980 and is engaged in manufacturing of coated textile fabric. AMMA CONSTRUCTION: CRISIL Reaffirms B+ Rating on INR3.5cr Loan -------------------------------------------------------------- CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable/CRISIL A4' rating to the bank facilities of Amma Construction India Private Limited (ACIPL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 6.5 CRISIL A4 (Reaffirmed) Cash Credit 3.5 CRISIL B+/Stable (Reaffirmed) The rating continues to reflect small scale of operations, large working capital requirement, customer and geographical concentration and susceptibility to tender-based operations these weaknesses are partially offset by reflect experience promoter in the civil construction segment. Analytical Approach Unsecured loans from promoters and related parties of INR6.62 crores as on 31st March 2022 are treated as neither debt nor equity (NDNE) as they will be maintained in the business over medium term. Key Rating Drivers & Detailed Description Weaknesses: * Small scale of operations in a competitive segment and large working capital requirement: Intense competition from small and medium-sized players keeps the company's scale of operations small, as reflected in revenue estimated of INR10.16 crore for fiscal 2022. Further the working capital requirements are large mainly because of stretched receivables and high inventory resulting in high gross assets. * Customer and geographical concentration: The revenue contributing significantly to topline through sales to a two customer. Also, the firm's operations are concentrated primarily in Karnataka, leading to geographical concentration and restricted scale of operation. Thus, business is likely to remain vulnerable to concentration risk, in terms of customers and geographic presence. * Susceptibility to tender-based operations: Revenue and profitability entirely depend on the ability to win tenders. Entities in this segment face intense competition, thus requiring to bid aggressively to get contracts, which restrict the operating margin to a moderate level. Also, given the cyclicality inherent in the construction industry, the ability to maintain profitability through operating efficiency becomes critical. Strength: * Experience of the promoters: The long experience of the promoters, in the civil construction business, has helped the firm establish a strong presence in Karnataka. Further, the partners have a keen understanding of local market dynamics and maintain healthy relationships with suppliers and customers. This is reflected in moderate order book of close to INR40 crore currently that provides moderate near to medium term revenue visibility to the company. Liquidity: Stretched Bank limit utilisation is high at around 100 percent for the past twelve months ended March 2023. Cash accrual are expected to be over INR0.70 Crore which are sufficient against term debt obligation of INR0.2-0.3 Crore over the medium term. Current ratio are healthy at 2.49 times on March 31, 2022. Outlook: Stable CRISIL Ratings believes, ACIPL will continue to benefit over the medium term from the promoter's experience in the civil construction business. Rating Sensitivity factors Upward Factors: * Healthy order execution leading to annual revenue of more than INR15 crore on sustainable basis * Improvement in working capital cycle and moderation in bank limit utilisation * Better working capital cycle, as reflected in reduction in GCAs and lower reliance on working capital debt Downward Factors: * Decline in revenue or operating profitability leading to cash accrual of less than INR0.50 crore * Higher than expected stretch in the working capital cycle putting pressure on its liquidity * Large, debt funded capital expenditure weakening financial risk profile Setup in 2010, Amma Construction India Pvt Ltd. (ACIPL) is engaged in civil construction, primarily road and building projects. The company undertakes projects for various government entities in the states of Karnataka, Maharashtra and Tripura. The company is based out of Bengaluru and is promoted by Mr. S Rama Krishna. APOLLO POLYVINYL: Insolvency Resolution Process Case Summary ------------------------------------------------------------ Debtor: Apollo Polyvinyl P Ltrl No.6, 3rd Street, Balaji Nagar Royapettah Chennai 600014 Insolvency Commencement Date: April 24, 2023 Estimated date of closure of insolvency resolution process: October 21, 2023 Court: National Company Law Tribunal, Chennai Bench Insolvency Professional: Ashok Velamur Seshadri A2, Dynamic Flats, Parangusapuram Street, Kodambakkam, Chennai 600 024 Email: ashokseshadrig@gmail.com Mobile: 9789672486 Email: resolution.apollopoly@gmail.com Last date for submission of claims: May 8, 2023 ATUL BUILDERS: Ind-Ra Withdraws BB+ Long Term Issuer Rating ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Atul Builders' Long-Term Issuer Rating of 'IND BB+' to the non-cooperating category and has simultaneously withdrawn it. The instrument-wise rating action is: -- INR1.2 bil. Term loan* due on April 2034 migrated to non- cooperating category and withdrawn. *Migrated to 'IND BB+ (ISSUER NOT COOPERATING)' before being withdrawn Key Rating Drivers Ind-Ra has migrated the ratings to the non-cooperating category because the issuer did not participate in the rating exercise despite requests and follow-ups by the agency and has not provided information pertaining to interim financials, sanctioned bank facilities, statements and utilization levels, business plans and projections for the next three years and 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 Ind-Ra's Policy on Withdrawal of Ratings. Ind-Ra will no longer provide analytical and rating coverage for Atul Builders. Company Profile Atul Builders is a partnership firm established by Ashok Choradia and Atul Choradia. The firm is engaged in real estate development. BALAJI MOTORS: CARE Lowers Rating on INR12.19cr LT Loan to B- ------------------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of Balaji Motors (BM), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 12.19 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category and Revised from CARE B; Stable Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated April 27, 2022, placed the rating(s) of BM under the 'issuer non-cooperating' category as BM had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. BM continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated March 13, 2023, March 23, 2023, April 2, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings assigned to the bank facilities of BM have been revised on account of non-availability of requisite information. Jagdalpur, Chhattisgarh based, Balaji Motors (BM) was established as a partnership firm in February 1, 2015. The firm is an authorised dealer of Mahindra and Mahindra Limited (M&M) for its passenger cars, commercial vehicles and spares & accessories. The showroom of the firm is located at five different places in the state of Chhattisgarh [i.e. 1) Jagdalpur, 2) NH-16 Geedam Road, 3) Near C.W.S NMDC Nandraj petrol pump, 4) Samrtanagar, 5) Vandana Complex] and workshop location at Jagdalpur, Bacheli and near CRPF Batalion where it also provides repair and refurbishment services for its all range of vehicles. Moreover, the firm has availed moratorium on interest repayment of cash credit as well as EMI's repayment of term loan from March 2020 to August 2020 from its lender as per the RBI circular. BALAJI SAHAKARI: CARE Keeps D Debt Rating in Not Cooperating ------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Shri Balaji Sahakari Soot Girni Limited (SBSSGL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 7.18 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated April 19, 2022, placed the rating(s) of SBSSGL under the 'issuer non-cooperating' category as SBSSGL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. SBSSGL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated March 5, 2023, March 15, 2023, March 25, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). SBSSGL was established as a co-operative society on January 21, 1991, but commenced commercial operation from May 25, 2011 onwards. SBSSG is engaged in cotton spinning through open end spinning method with an installed capacity of 6,624 spindles for manufacturing of cotton yarn with end-user industries being power loom companies situated in and around the area of Washim, Maharashtra. BIYANI SHIKSHAN: CRISIL Moves D Debt Rating from Not Cooperating ---------------------------------------------------------------- Due to inadequate information and in line with the Securities and Exchange Board of India guidelines, CRISIL Ratings had migrated its rating on the long-term bank facilities of Biyani Shikshan Samiti (BSS) to 'CRISIL D; Issuer not cooperating'. However, the society's management has subsequently started sharing the information necessary for a comprehensive rating review. Consequently, CRISIL Ratings is migrating its rating to 'CRISIL D'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Overdraft Facility 4 CRISIL D (Migrated from 'CRISIL D ISSUER NOT COOPERATING') Working Capital 7.52 CRISIL D (Migrated from Term Loan 'CRISIL D ISSUER NOT COOPERATING') The ratings reflect irregularities in the conduct of the account as per publicly available information. The ratings also factor in exposure to intense competition and vulnerability to stringent regulations. These weaknesses are partially offset by the extensive experience of the management and trustees in the education sector and diversified revenue streams. Key Rating Drivers & Detailed Description Weakness: * Irregularities in conduct of the account: There have been irregularities in the conduct of the account as per publicly available information. * Vulnerability to stringent regulations: Establishment and operations of educational institutions are regulated by various government and quasi-government agencies, such as University Grants Commission, Medical Council of India, All India Council for Technical Education, and state governments. Each body has detailed procedures for granting permission to set up institutions, and approvals need to be renewed every three or five years. Non-compliance may result in cancellation of affiliation or license, leading to loss of reputation and revenue for BSS. * Exposure to intense competition: BSS faces intense competition, especially in management and engineering courses, from other institutes affiliated with the University of Rajasthan. Sustained inflow of students will depend on the society's ability to offer placements by securing tie-ups with multinational corporations, provide quality education through continuous development in infrastructure and retain the best faculty. Strength: * Diversified revenue streams and extensive experience of the management and trustees: The management has experience of around two decades in the education sector. It has helped to diversify into various streams such as commerce, nursing, education, technology, information technology and management, leading to steady revenue intake throughout the year. Unlike educational institutes offering one or two courses, this kind of revenue intake leads to stable revenue for BSS. Liquidity: Poor Liquidity is poor as indicated by instances of irregularities in the conduct of the account. Bank limit utilization was high at 93.5% on average over the 12 months through December 2022. Rating Sensitivity factors Upward factors: * Track record of regular conduct of account for at least 90 days * Improvement in the financial risk profile and liquidity Set up in 1997 by Mr Rajeev Biyani, Dr Sanjay Biyani and Dr Manish Biyani, BSS was initially a coaching institute. The society set up its first institute, Biyani Girls College, in Jaipur, Rajasthan, in 2003. It currently operates six institutes under the brand Biyani in Vidhyadhar Nagar and Kalwar, Jaipur. The institutes offer courses in the fields of commerce, nursing, education, technology, information technology and management. BSS has more than 4,300 students. BLAZE PROMOTERS: Insolvency Resolution Process Case Summary ----------------------------------------------------------- Debtor: Blaze Promoters Private Limited Registered Office: 102, Antriksh Bhawan, 22, K.G Marg, Connaught Place, New Delhi 110001 Principal Office Address: Vatika Triangle, Seventh Floor, Sushant Lok, Phase-1, M.G Road, Gurgaon, Haryana - 122002 Insolvency Commencement Date: April 25, 2023 Estimated date of closure of insolvency resolution process: October 22, 2023 Court: National Company Law Tribunal, New Delhi Bench-II Insolvency Professional: Raj Kumar Dad 302, L Wing, Shree Sankeshwar Nagar Society, SV Road, Ashok Van Dahisar East Mumbai City, Maharashtra-400066 Email:rajkdad@gmail.com 532, 5TH Floor, Somdati Chamber-II, Bhkaji Cama Place, New Delhi-110066 Email: blazepromoters.ibc@gmail.com Last date for submission of claims: May 9, 2023 BSCPL INFRA: CARE Reaffirms D Rating on INR393.29cr LT Loan ----------------------------------------------------------- CARE Ratings has reaffirmed ratings on certain bank facilities of BSCPL Infrastructure Limited (BSCPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 393.29 CARE D Reaffirmed Facilities Long Term/ Short Term Bank Facilities 1,374.75 CARE D/CARE D Reaffirmed Rationale and key rating drivers The reaffirmation in ratings assigned to the bank facilities of BSCPL factors in stretched liquidity due to delay in realization of receivables resulting in ongoing delays in payment of debt obligation. The ratings are, further tampered by high exposure to group/associated companies through loans & advances and funding commitments, decline in financial performance during FY22 (FY refers to period April 1 to March 31) and 9MFY23, leveraged capital structure, elongated operating cycle with high reliance on working capital borrowings, slow-moving orders, fluctuation in input costs and intense competition in civil construction industry. The ratings, however, derive strength from experienced and resourceful promoters, long operational track record of the company, healthy order book position with majority of the projects funded by central and state government bodies. CARE has partially withdrawn the outstanding ratings of 'CARE D' assigned to the bank facilities (GECL Term Loans) of BSCPL with immediate effect. The above action has been taken at the request of BSCPL and 'No Dues Certificate' received from Bank of Baroda, Indian Bank, Union Bank of India, and State Bank of India that have extended the facilities rated by CARE. Rating sensitivities: Factors likely to lead to rating actions Positive factors * Improvement in liquidity position with subsequent regularization of debt servicing with delay free track record for a continuous period of at least 3 months. Analytical approach: Standalone Outlook: Not Applicable Detailed description of the key rating drivers: Key weaknesses * Delay in debt servicing: The company had delayed the interest payments in cash credit (CC) account which are subsequently regularised within a period of 30 days barring confirmation from one lender that the irregularities are more than a period of 30 days. Further, there are delays in few equipment loans availed from various NBFCs/banks and the same was qualified by the auditor in CARO report for FY22. The delays were mainly due to elongation in realisation of bills from counter parties resulted in stretched liquidity position leading to overdues in CC account. CARE takes cognizance of company regularizing the said overdrawals in cash credit account and over dues in equipment loans at the end of the day on March 31, 2023. Further, the company also reduced its fund based working capital limits to an extent of INR40 crore. * High exposure to group/associate companies albeit reduction in current fiscal: Despite considerable reduction as of March 31,2022 and further as on December 31, 2022, BSCPLs exposure towards its group and associate companies remained high. Majority of exposure is in the form of investments, equity and advances extended to the subsidiary, associate, and joint ventures. Such entities are involved in development/have developed road BOT projects etc which have become operational post achievement of COD. Further, the management had informed that BSCPL had entered into share purchase agreement (SPA) with Macquarie Asset Management to sell one of its subsidiaries i.e., BSCPL Aurang Tollway Limited (BATL) for an enterprise valuation of INR1672 crore and the same is expected to get materialised by end of Q2FY24. Receipt of the sale proceeds is expected to result in reduced leverage and improved liquidity position of the company. * Decline in Total operating income and profitability margins during FY22: The total operating income (TOI) of the company at a standalone level declined marginally to INR1362.96 crore from INR1387.39 crore during FY21 due to partial impact of COVID-19 second wave in first quarter of FY22. PBILDT level & margins have deteriorated at INR105.03 crore & 7.74% in FY22 from INR187.05 crore & 13.48%, mainly on account of increase in material expenses. BSCPL has eported reduced PAT level & margin of INR2.44 crore & 0.18% (as against INR30.24 crore & 2.18% in FY21). * Total operating income and profitability during 9MFY23: During 9MFY23, on standalone basis, company booked a TOI of INR867.24 crore due to slower execution of projects in hand. BSCPL reported PBILDT of INR29.50 crore, however, net loss of INR40.47 crore. Further, the PBILDT level & margins have been fluctuating owing to volatility in cost of sales. * Leveraged capital structure: The debt profile of the company comprises term loans, working capital borrowing, mobilization advances and unsecured loans from related parties. The overall gearing improved to 1.06x as on March 31, 2022 as against 1.17 as on March 31, 2021 on the back of healthy net-worth base, the adjusted overall gearing (factoring group exposure) stands leveraged at around 4.20x as on March 31, 2022. The debt coverage indicator marked by PBILDT to interest coverage ratio and Total Debt to GCA deteriorated and stands at 0.74x and 22.47x during FY22 against 0.96x and 20.12x in FY21, mainly due to decrease in GCA levels. * Stretched operating cycle albeit improvement with high reliance of working capital borrowings: The operating cycle though improved to 263 days in FY22 (297 days in FY21) continued to remain elongated. Elongated operating cycle is primarily due to delay realisation of bills for the work done resulting in high collection period however the same improved to 91 days in FY22 as against 132 days. Given the delay in realisation of debtors, the working capital utilization was fully utilised for the last 12 months period ended February 2023. To address the mismatch in cashflows, the promoters have been infusing funds to support the operational requirements and meet debt servicing obligations. * Slow movement of orders: Majority of the order book is concentrated with roads & bridges having 54.20% followed by irrigation & water supply having 40.80% and balance from railway works. Further, the company undertakes work for reputed central/state government backed entities like National Highway Authority of India (NHAI), Greater Hyderabad Municipal Corporation (GHMC), Ministry of Road Transport & Highways (MoRTH) etc., who have strong credit profile, thereby the company is exposed to low counter party risk with respect to payments. However, the company has been facing labour shortages on account of Covid-19 spread, which resulted delay in completing the project, and in turn delay in clearances from concerned authorities. BSCPL received extension of time from principal contractor & concerned authorities. * Volatile input costs: The raw material costs and sub-contracting costs form major portion for total cost of sales for BSCPL. During FY22, raw material cost constituted 39.08% of the total cost of sales as against 33.06% in FY21. The raw material expenses as a % of cost of sales have increased in FY22 due to revision in input costs (mainly steel, cement, and bitumen). The prices of majority of raw materials used (steel, cement, sand, bitumen, concrete etc.) are volatile in nature which could lead to cost overrun and hence, margins are protected to a considerable extent with price escalation clauses in all its contracts. * Tender-based nature of operations in intensely competitive civil construction industry: The Company receives all its work orders from central/state government companies and constituting 100% of its order book position. All these are tender-based, and the revenues are dependent on the company's ability to bid successfully for these tenders and complete the works within the envisaged timeline and cost. Profitability margins come under pressure because of competitive nature of the industry. However, the promoters' long standing industry experience of more than four decades and operating efficiency of the company mitigates this risk to great extent. Key Strengths * Well-established track record of operations: BSCPL incorporated in 1982, has been operating for almost four decades in the construction segment. BSCPL, the ultimate holding company is a diversified infrastructure developer with presence in the airport, railways, ports and road segments. Also, BSCPL has completed majority orders in the state of Rajasthan, Delhi-NCR, West Bengal, Uttar Pradesh & Bihar and is currently executing orders in Andhra Pradesh, Odisha, Assam, Telangana, Karnataka, Bihar, Tamil Nadu & Maharashtra. * Healthy order book position: As on May 31, 2022, BSCPL has an outstanding order book of INR3,857 crore indicating medium term revenue visibility with order-book to net sales ratio of 2.83x. The orders are spread across multiple states, hence, partially offsetting geographical concentration of revenue. BSCPL is currently executing orders in Bihar (39.56%), Andhra Pradesh (21.21%), Telangana (16.56%), Karnataka (8.68%), Maharashtra (6.82%), Uttar Pradesh (4.48%), Assam (2.20%) and Tamil Nadu (0.22%). Stable Industry outlook: The construction industry contributes around 8% to India's Gross domestic product (GDP). Growth in infrastructure is critical for the development of the economy and hence, the construction sector assumes an important role. Enforcement of nationwide lockdown against the spread of Covid-19 pandemic has adversely impacted the financial and liquidity profile of players in the industry. Government of India has undertaken several steps for boosting the infrastructure development and revives the investment cycle. The same is expected to gradually result in increased order inflow and movement of passive orders in existing order book. The focus of the government on infrastructure development is expected to translate into huge business potential for the construction industry in the long run. Massive outlay of USD 1.97 trillion under The National Infrastructure Pipeline (NIP) and large budgetary allocation corroborate the same. Union budget 2021 allocates capital outlay of INR5.5 trillion includes allocation of INR1.2 trillion to Roads, INR1.1 trillion to Railway, INR0.69 trillion to Marine, INR0.37 trillion to urban infrastructure. The same is expected to gradually result in increased order inflow and movement of passive orders in existing order book. The construction sector is likely to grow at 10.7 percent in FY22 in a rebound from a contraction of 8.6 percent last year, according to the Ministry of Statistics and Programme Implementation. Liquidity: Stretched The liquidity position is marked by stretched operating cycle, thereby resulting in high utilization of fund based working capital. Maximum utilization stood at 100% for the latest 12 months ended February 2023. To address the mismatch in cashflows the promoters have brought in unsecured loans and from Covid relief line of credit. The cash generated from operations were moderate in FY22 and during 9MFY23, the company has reported net loss of INR26.75 crore. Further, the management had indicated that BSCPL had entered into share purchase agreement (SPA) to sell one of its subsidiaries i.e., BSCPL Aurang Tollway Limited (BATL) and the same is expected to get materialised by end of Q1FY24. Receipt of the sale proceeds will likely result in improved liquidity position of the company. Improved liquidity position and regular debt servicing will remain key rating monitorable. BSCPL Infrastructure Limited (erstwhile B Seenaiah & Co Projects Limited; BSCPL) is the flagship and holding company of the BSCPL group. BSCPL acts as an investment vehicle of the BSCPL group for all its investments in the infrastructure sector and is ultimate holding company of diversified infrastructure assets of the group. BSCPL at standalone level is engaged in executing EPC contracts roads and irrigation projects. It also develops, operates and maintains national and state highways. On a consolidated basis, as on March 31, 2022, BSCPL's assets are divided into three major segments i.e., EPC for infrastructure projects (Roads, Bridges, Airports, Railways, Irrigation works etc.), real-estate and BOT (Build Operate Transfer) projects. DAS PROCESSORS: CARE Lowers Rating on INR4.0cr LT Loan to B- ------------------------------------------------------------ CARE Ratings has revised the ratings on certain bank facilities of Das Processors (DP), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 4.00 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category and Revised from CARE B; Stable Short Term 3.00 CARE A4; ISSUER NOT Bank Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated March 7, 2022, placed the rating(s) of DP under the 'issuer non-cooperating' category as DP had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. DP continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated January 21, 2023, January 31, 2023, February 10, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings assigned to the bank facilities of DP have been revised on account of non-availability of requisite information. Das Processors (DP) was set up as a partnership firm in 2012 by Das family of Rajnandgaon, Chhattisgarh. The firm undertakes civil construction projects, primarily building and road construction, for state and local government agencies in Chhattisgarh. DP secures all its contracts through tender driven open bidding process and has an order book position of INR38.99 crore as on July 31, 2018 which is 2.03x of FY18 revenue. Mr. Dushyant Das (Partner) is having more than two decades of experience in the construction industry. He looks after the day to day operations of the firm and is supported by a team of professionals. DEEM CONSTRUCTION: Insolvency Resolution Process Case Summary ------------------------------------------------------------- Debtor: Deem Construction Company Private Limited GI-262-263, EPIP, RIIC0, Sitapura, Jaipur 302022, Rajasthan Insolvency Commencement Date: April 19, 2023 Estimated date of closure of insolvency resolution process: October 16, 2023 (180 Days ) Court: National Company Law Tribunal, Jaipur Bench Insolvency Professional: Mr. Sandeep Kumar Jain E-252, Vardhaman Marg, Lal Kothi Scheme, Jaipur-302005, Rajasthan E-mail: sandeepjaincs@gmail.com E-mail: sandeepjainip@gmail.com Last date for submission of claims: May 9, 2023 FIZA POLYMERS: Insolvency Resolution Process Case Summary --------------------------------------------------------- Debtor: Fiza Ploymers Private Limited 1016, Hubtown Viva, Akruti Trade PT CTS 330 (PT) MTR, Room No. 2, Shankarwadi, W.E. Highway, Jogeshwari-E, Mumbai-400060, MH Insolvency Commencement Date: April 21, 2023 Estimated date of closure of insolvency resolution process: October 9, 2023 Court: National Company Law Tribunal, Mumbai Bench Insolvency Professional: Kiran Martin Golla Flat No.1704, T-3, Raheja Tipco Heights, Rani Sati Marg, Malad-E, Mumbai-400097, Maharashtra Email: fizapolymers.ibc@gmail.com Last date for submission of claims: May 9, 2023 GANPATI MOULDERS: CARE Keeps B- Debt Ratings in Not Cooperating --------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Ganpati Moulders Private Limited (GMPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 10.81 CARE B-; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Long Term/ 1.88 CARE B-/CARE A4; ISSUER NOT Short Term COOPERATING; Rating continues Bank Facilities to remain under ISSUER NOT COOPERATING category Short Term 1.00 CARE A4; ISSUER NOT Bank Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated May 9, 2022, placed the rating(s) of GMPL under the 'issuer non-cooperating' category as GMPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. GMPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated March 25, 2023, April 4, 2023, April 14, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Aurangabad based, Ganpati Moulders Private Limited (GMPL) was incorporated in the year 2005 and is engaged in plastic injection moulding of household appliances, like parts of refrigerators, washing machines and air conditioners. GATI INFRASTRUCTURE: Insolvency Resolution Process Case Summary --------------------------------------------------------------- Debtor: Gati Infrastructure Bhasmey Power Private Limited Registered Address: 104/105, 4th Floor, Surya Towers Sardar Patel Road, Secunderabad, Hyderabad, Telangana, Andhra Pradesh - 500003 Project At: Rangpo-Rorthang Road, Bhasmey, East Sikkim - 737132 Insolvency Commencement Date: April 24, 2023 Estimated date of closure of insolvency resolution process: October 21, 2023 (180 Days) Court: National Company Law Tribunal, Hyderabad Bench-I Insolvency Professional: Anshul Gupta 410, 4th Floor, Blue Rose Industrial Estate, Near Metro Mall, Borivali East, Mumbai City, Maharashtra-400066 Email: contactanshulgupta@gmail.com 532, 5th Floor, Somdatt Chamber-II Bhikaji Cama Place, New Delhi-110066 Email Id: gatiinfra.ibc@gmail.com Last date for submission of claims: May 13, 2023 GEETA TEXTILE: CARE Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Shree Geeta Textile Mills Private Limited (SGTMPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 43.81 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated March 10, 2022, placed the rating(s) of SGTMPL under the 'issuer non-cooperating' category as SGTMPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. SGTMPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated January 24, 2023, February 3, 2023, February 13, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). SGTMPL was established in 2008 by Madhya Pradesh based Mittal family. SGTMPL has completed its project in phase wise and started commercial operations of cotton ginning & pressing and spinning from November, 2015 and knitting of cotton yarn from February 2016. The company manufactures 100% cotton yarn of 28 counts (average) which finds application in the manufacturing of hosiery garments and bed sheets. The plant of the company has total installed capacity 10 tons per day for manufacturing of cotton yarn and 10 tons per day for knitting of cotton yarn. GO FIRST: Lessor Seeks Directions From Court to Retrieve Aircraft ----------------------------------------------------------------- The Hindu reports that as Go First undergoes insolvency resolution proceedings, an aircraft lessor moved the Delhi High Court seeking directions to the authorities to release the plane leased to the crisis-hit airline. Besides, two more aircraft lessors have moved the National Company Law Appellate Tribunal (NCLAT) opposing the airline's insolvency proceedings. Accipiter Invesments Aircraft 2 Ltd has filed a writ petition before the Delhi High Court against the Union government and others, according to a lawyer, the Hindu relays. It has requested the high court to direct DGCA to deregister its aircraft which is currently on lease with Go First. Besides, Accipiter Invesments Aircraft has moved the NCLAT. Another aircraft lessor Eos Aviation 12 (Ireland) Ltd has also filed a petition before the NCLAT against Go First. With moratorium on financial obligations and transfer of assets of Go First in the wake of the insolvency resolution proceedings, lessors are unable to deregister and take back the aircraft leased to the carrier, the report notes. A total of six entities have moved the NCLAT in the Go First case and earlier on May 16, the appellate tribunal heard the plea of Ireland-based Engine Leasing Finance, according to the Hindu. The Hindu relates that the appellate tribunal said it will pass the order on May 22 along with the other three petitions. "Orders on 22.05.2023. Short written notes may be filed within two days by both parties," it said. Three aircraft lessors -- SMBC Aviation Capital Ltd, GY Aviation and SFV Aircraft Holdings -- have moved the NCLAT against Go First's insolvency resolution proceedings. These three lessors have leased out around 21 aircraft to Go First, the report notes. So far this month, several lessors have approached aviation regulator DGCA for deregistration and repossession of Go First's 45 planes, adds the Hindu. About Go First Go First, formerly known as GoAir, was an Indian ultra-low-cost airline based in Mumbai, Maharashtra. Go First was incorporated in April 2004 as GoAir and commenced flight operations in November the following year. Its inaugural flight was from Mumbai to Ahmedabad. The airline is owned by the Wadia Group. As reported the Troubled Company Reporter-Asia Pacific on May 3, 2023, Go First filed an application for voluntary insolvency resolution proceedings before National Company Law Tribunal (NCLT) on May 2. The company said the filing with the NCLT comes after Pratt & Whitney, the exclusive engine supplier for the airline's Airbus A320neo aircraft fleet, refused to comply with an order to release engines to the airline that would have allowed it return to full operations. On May 10, the National Company Law Tribunal (NCLT) accepted Go First's voluntary insolvency petition. The NCLT bench appointed Abhilash Lal as the interim resolution professional to look after the affairs of Go First and also suspended its board as part of the insolvency resolution process. HANUMAN TRUST: CRISIL Reaffirms B- Rating on INR59.5cr Term Loan ---------------------------------------------------------------- CRISIL Ratings has reaffirmed its 'CRISIL B-/Stable' rating on the long-term bank facility of Shree Hanuman Trust (SHT). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 59.5 CRISIL B-/Stable (Reaffirmed) The rating reflects the trust's dependence on interest income on loan extended to a group entity engaged in real estate and below average debt service ratio. The weakness is partially offset by the prime location of the trust's property. Key Rating Drivers & Detailed Description Weaknesses: * High dependence on interest income from group company: The trust had extended loan of INR93 crore to group company Sea link Construction Co Pvt Ltd, of which, INR42 crore was outstanding as on March 31, 2022. The trust charges interest of 11.5% on the loan and funds any mismatch between its rental income and debt obligation through this interest, and is hence, dependent on the performance of the group entity for servicing debt. * Below average debt service ratio: DSCR is expected to remain below average due to premises being vacant and the repayment obligations being met through interest income from group company. Further occupancy of premises by new tenant leading to better revenues and improved DSCR will be a monitorable factor over the medium term. Strength: * Prime location of property: The property is located in the prime location of Nariman Point in Mumbai. The trust will be able to command a premium rental. Liquidity: Poor SHT has poor liquidity with expected DSCR of 1 time throughout the tenure of the loan, and given that debt servicing will continue to depend on interest income from group company. Outlook: Stable CRISIL Ratings believes SHT will benefit from steady cash flow from interest income Rating Sensitivity factors Upward factors: * Improvement in the DSCR to over 1.5 times, supported by change in lease rent rates leading to substantially higher cash flow * Increase in lease rates or prepayment of debt resulting in improved liquidity Downward factors * Drawdown of additional debt, leading to the DSCR below 1.0 time * Any delays in servicing debt due to delay in receipt of interest income from group company SHT, set up in 1982, owns an office in Mumbai, which was leased out. Currently the office remains vacant. The trust is owned by Mittal Group, which has interest in real estate development. HIND PLASTIC: CARE Lowers Rating on INR8cr LT Loan to B- -------------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of Hind Plastic Industries (HPI), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 8.00 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category and Revised from CARE B; Stable Short Term Bank 22.00 CARE A4; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Rationale and Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated May 18, 2022, placed the rating(s) of HPI under the 'issuer non-cooperating' category as HPI had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. HPI continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter dated April 3, 2023, April 13, 2023, April 23, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings assigned to the bank facilities of HPI have been revised on account of non-availability of requisite information. Hind Plastic Industries (HPI) was established in 1988 as partnership firm by Late Mr. Ramesh Goyal. The firm is currently being managed by Mr. Amit Goyal and Mrs. Kavita Goyal. The firm is engaged in the business of trading of poly vinyl chloride (PVC) resins & plastic granules. HPI mainly sells its products domestically across Punjab. J R MODI: Insolvency Resolution Process Case Summary ---------------------------------------------------- Debtor: JR Modi Associates Limited 26, Ground Floor, Sir Fort Road New Delhi South Delhi DL 110049 Insolvency Commencement Date: April 21, 2023 Estimated date of closure of insolvency resolution process: October 17, 2023 Court: National Company Law Tribunal, New Delhi Bench Insolvency Professional: Rajiv Bajaj B-269, Lower Ground Floor, Chhatarpur Enclave, Phase-2, New Delhi-110074 Email: rbajajip@gmail.com Email: cirpmodi@gmail.com Last date for submission of claims: May 5, 2023 JAI GURUDEV: CARE Keeps C Debt Rating in Not Cooperating -------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Jai Gurudev Food Product (JGFP) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 5.00 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Short Term 1.00 CARE A4; ISSUER NOT Bank Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated May 5, 2022, placed the rating(s) of JGFP under the 'issuer non-cooperating' category as JGFP had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. JGFP continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated March 21, 2023, March 31, 2023, April 10, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Sihora-based (Madhya Pradesh (M.P.)) JGFP was formed on July 17, 2018 as partnership firm by Mr. Nareshkumar Sehajwani and Mr. Inderkumar Sehajwani. The firm is currently into trading of rice and is envisaging to foray into manufacturing and processing of paddy and rice. The total cost of project was envisaged at INR4.70 crore (excluding working capital margin) to be funded via debt-equity mix of 1.14:1.00 times, while JGFP has completed 95% of its project till March 31, 2019. JGFP's processing unit is situated at Pherewa, Sihora, Madhya Pradesh having installed capacity of 38,400 Metric Tonne Per Annum (MTPA) for rice processing as on March 31, 2019. Commercial operations of JGFP's manufacturing facility was expected to commence from April, 2019. JGFP envisages procuring paddy from local traders of M.P. and Uttar Pradesh (U.P.) and will sell the parboiled rice domestically within India. JOHAR AUTOMOBILES: CRISIL Lowers Rating on INR6cr Loan to D ----------------------------------------------------------- CRISIL Ratings has downgraded its rating on the long-term bank facilities of Johar Automobiles (JA) to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B-/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Overdraft Facility 6 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B-/Stable ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with JA for obtaining information through emails dated February 28, 2022 and April 18, 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 JA, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on JA is consistent with 'Assessing Information Adequacy Risk'. JA, based in Noida (Uttar Pradesh), deals in commercial vehicles of TML. The firm is promoted by Mr. Charanpreet Singh Johar and Mr. Jaspreet Singh Johar. KETAKI SANGAMESHWAR: CARE Keeps B- Debt Rating in Not Cooperating ----------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Ketaki Sangameshwar Industries (KSI) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 10.00 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated May 4, 2022, placed the rating(s) of KSI under the 'issuer non-cooperating' category as KSI had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. KSI continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated March 20, 2023, March 30, 2023, April 9, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Telangana based, Ketaki Sangameshwar Industries (KSI) was established on April 3, 2017 and started commercial operat ions from November 20, 2017. The firm was established as a partnership firm by Mr. Raghavendra B Bacha (Managing Partner) along with his family members. Mr. Raghavendra B Bacha manages the overall business operations of KSI. The firm is engaged in the cotton ginning and pressing activity with a total installed capacity of 300 bales per day and 50 quintals for cotton seeds per annum. The firm procures raw cotton from farmers located at Sangareddy dist and final product (Bales) are sold to customers in Tamil Nadu, Mumbai, Gujarat, Hyderabad etc. The manufacturing unit of the firm is located at Sangareddy Dist, Telangana. KRISHNENDU BHAKTA: CARE Keeps B- Debt Rating in Not Cooperating --------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Krishnendu Bhakta (KB) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 7.15 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 4.85 CARE A4; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated April 27, 2022, placed the rating(s) of KB under the 'issuer non-cooperating' category as KB had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. KB continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated March 13, 2023, March 23, 2023, April 2, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Krishnendu Bhakta (KB) was established as a proprietorship entity in 1992 by Mr. Krishnendu Bhakta based out of West Bengal. Since its inception, the entity has been engaged in civil construction activities in the segment like construction of roads, canals, buildings etc. KB participates in tenders and executes orders for PWD West Bengal, Digha Development Authority, Haldia Development Authority etc. MADHYA BHARAT: CARE Reaffirms B+ Rating on INR8.10cr LT Loan ------------------------------------------------------------ CARE Ratings has reaffirmed ratings on certain bank facilities of Madhya Bharat Telecom Infrastructure (MBTI), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 8.10 CARE B+; Stable; Rating removed Facilities from ISSUER NOT COOPERATING category and Reaffirmed Long Term/ 10.40 CARE B+; Stable/CARE A4 Short Term Rating removed from ISSUER NOT Bank Facilities COOPERATING category and Reaffirmed Rationale and key rating drivers In the absence of receipt of surveillance fees, in line with the extant SEBI guidelines, CARE Ratings Ltd. had placed the rating of bank facilities of MBTI into 'ISSUER NOT COPERATING'. However, the entity has now paid the surveillance fees. Hence, CARE Ratings Ltd has carried out a full review of the rating and the rating stand at 'CARE B+; Stable/CARE A4. The ratings assigned to the bank facilities of Madhya Bharat Telecom Infrastructures (MBTI) continued to remain constrained on account of modest scale of operations, moderate profit margins, modest order book position, leveraged capital structure, weak debt coverage indicators and stretched liquidity position during FY22 (Audited; refers to the period from April 01 to March 31) and FY23 (Provisional; refers to the period from April 1 to March 31). Further, the ratings, continue to remain constrained on account of MBTI's constitution as a partnership concern and its presence in the highly competitive and fragmented civil construction industry. However, ratings are supported by experienced management. Rating sensitivities: Factors likely to lead to rating actions Positive factors * Increase in scale of operations marked by total operating income (TOI) more than INR40 crore with adequate orders on hand * Improvement in capital structure marked by overall gearing below 1.50x on sustained basis * Improvement in profitability margin marked by PBILDT margin of more than 10% on sustained basis Negative factors * Deterioration in liquidity position owing to delayed receipts from the department and subsequently leading to delay in execution of the projects. * Decrease in operating margin marked by PBILDT margin of below 5% * Any changes in the government policy which affects the operations of the firm * Deterioration in capital structure marked by overall gearing above 3x Analytical approach: Standalone Outlook: Stable CARE Ratings believes that the entity will continue to benefit from established relationship with the customers and receive orders on a regular basis. Detailed description of the key rating drivers: Key weaknesses * Decline in scale of operations and moderate profitability: The scale of operations as marked by TOI remained modest at INR24.30 crore in FY23 and INR24 crore in FY22 as against INR31.90 crore in FY21, mainly on account of lower number of contracts executed. The profitability position continued to remain moderate as marked by PBILDT margin at 7.37% in FY23 and 6.84% in FY22 as against 6.29% in FY21 mainly due to decrease in the cost of material consumed. PAT margin continued to remain thin at 0.58% in FY23 and 0.44% in FY22. * Modest order book position: As on April 1, 2023 the order book position of MBTI remained modest at INR23.87 crore (Rs.43.87 crore orders on hand as on March 24, 2022). The order book to TOI ratio also remained low at 1x translating into revenue visibility over short term since the orders are to be executed till June 30, 2023. * Leveraged solvency position and weak debt coverage indicators: The capital structure of the firm continued to remain leveraged marked by an overall gearing ratio of 2.91x as on March 31, 2022 as against 2.33x as on March 31, 2021. The overall gearing further continued to remain leveraged as on March 31, 2023 marked by low tangible net worth base vis-à-vis high debt level. The debt coverage indicators of the firm continued to remain weak marked by total debt to Gross Cash Accruals (TDGCA) of 25.72x as on March 31, 2023 as against 31.76x as on March 31, 2022 led by decline in total debt level on the back of repayment of term debt during the year. Further, the interest coverage ratio stood moderate at 1.25x in FY23 as against 1.23x in FY22. * Constitution as a partnership firm: MBTI's constitution as a partnership concern with moderate net worth base restricts its overall financial flexibility in terms of limited access to external fund for any future expansion plans. Furthermore, there is an inherent risk of possibility of withdrawal of capital and dissolution of the firm in case of death/insolvency of partner. * Highly competitive intensity in the government civil construction segment: The construction industry is highly fragmented in nature with presence of large number of unorganized players and a few large organized players coupled with the tender driven nature of construction contracts poses huge competition and puts pressure on the profitability margins of the players. MBTI is a regional player and all the projects are executed in Madhya Pradesh which reflects geographical concentration risk though it can take projects from all over India. Further, as the firm participates in tenders invited by large lead contractor, high competition and lower bargaining power restricts its profitability margins. Key strengths * Experienced management: Mr. Nishant Malaiya and Mr. Jaideep Wadia, partners, have experience of around two decades in the infrastructure industry and looks after overall affairs of the firm. Further, the partners of the firm are assisted by professionally qualified and experienced team in the field of civil engineering and construction. The firm has experienced technical team of 100 skilled employees for executing contracts on time. Liquidity: Stretched The liquidity position of the firm remained stretched as the firm is engaged in government civil construction industry and gets late payment from department which also results in almost full utilization of its working capital bank borrowing during past 12 month ended February 2023. Gross cash accruals remained inadequate at INR0.36 crore in FY22 as against debt repayment obligations of INR0.89 crore arising in FY23. Hence, the partners have infused funds in the form of unsecured loans to the tune of INR1.77 crore in FY23. Its current ratio remained stable at 1.08 times as on March 31, 2022 as against 1.11 times as on March 31, 2021. Further, cash flow from operations deteriorated and remained at INR1.72 crore in FY22 as against INR1.99 crore in FY21 on account of decrease in operating profits. Operating cycle of MBTI deteriorated at 25 days during FY22 as against comfortable operating cycle of 5 days in FY21 mainly on account of averaging effect of past years. Infrastructures (MBTI) was formed in 2006 as a partnership concern by Mr. Nishant Kumar Malaiya and Mr. Jaideep Wadia. Till FY14, the firm was engaged in the business of tower installation and laying of Optical Fibre Cables (OFC) for telecom infrastructure companies. From FY15, it is engaged in the construction & maintenance of roads, construction of sewage lines and sewage treatment plants, installation and commissioning of water supply lines and construction of Economically weaker section (EWS) houses and currently it is executing contracts of construction of EWS houses for Municipal Corporation in Madhya Pradesh. The firm is registered 'A' class approved contractor with Public Works Department (PWD), Madhya Pradesh. MARVEL REALTORS: NCLAT Closes Insolvency Proceedings Against Firm ----------------------------------------------------------------- Daily Pioneer reports that the National Company Law Appellate Tribunal (NCLAT) has closed the Corporate Insolvency Resolution Process (CIRP) against Marvel Realtors & Developers Ltd. after taking on record settlement with its financial creditor. Daily Pioneer relates that a two-member bench of NCLAT headed by Chairperson Ashok Bhushan said that the realtor has submitted a settlement letter dated May 8, 2023 with its financial creditor, IDFC First Bank. "We take the settlement letter dated May 8, 2023 on record, close the CIRP against the Corporate Debtor setting aside the Order dated December 23, 2022," said NCLAT order, Daily Pioneer relays. Moreover, it also rejected the plea of Catalyst Trusteeship, which had filed an intervention application opposing the withdrawal of CIRP against Marvel Realtors & Developers. "Intervener is at liberty to take its own proceeding in accordance with the law to protect it," it said. The appellate tribunal observed that in the present case, a Committee of Creditors has not been constituted. As reported in the Troubled Company Reporter-Asia Pacific in early January 2023, the bankruptcy court had admitted Marvel Realtors & Developers Ltd under the corporate insolvency resolution process (CIRP) and appointed Manoj Kumar Mishra as the interim resolution professional for the Pune-based realty firm. The Mumbai bench of the National Company Law Tribunal (NCLT) allowed the petition filed by company's lender IDFC First Bank to initiate the insolvency proceedings. MET-ROLLA IRON: CRISIL Hikes Rating on INR1cr Cash Loan to B+ ------------------------------------------------------------- CRISIL Ratings has upgraded its ratings on the long-term bank facilities of Met-Rolla Iron And Strips Company Limited (MRISCL) to 'CRISIL B+/Stable' from 'CRISIL B/Stable'. The short-term ratings have been reaffirmed at 'CRISIL A4'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 1 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') Letter of Credit 6 CRISIL A4 (Reaffirmed) Proposed Fund- Based Bank Limits 0.5 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') The rating action reflects an improvement in the company's business risk profile. While revenues remained stable and are estimated at INR43-45 crores for fiscal 2023, as compared to INR42.7 crore in fiscal 2022, profitability has turned positive in fiscal 2022 and is estimated to sustain around 1.5-2% in fiscal 2023. The improvement was driven by sustained increase in scale of operations and better fixed cost absorption. Consequently, the financial risk profile has also shown improvement with increasing networth and adequate debt protection measures. The ratings reflect the company's modest scale of operations in the fragmented steel industry, volatile operating margin and modest networth. These weaknesses are partially offset by the extensive industry experience of the promoters and moderate capital structure and debt protection measures. Key Rating Drivers & Detailed Description Weaknesses: * Modest scale of operations: While revenues have increased on a sustained basis and are estimated at INR43-45 crores in fiscal 2023, the scale of operations continues to remain modest. Modest scale of operations restricts bargaining power, pricing, and flexibility. Significant ramp up in scale of operations remains a key monitorable for the medium term. * Exposure to volatility in operating margin due to intense competition: Intense competition from several organised players—mid-sized players dealing in local and regional brands—and the commoditized nature of products impacts profitability as reflected in operating losses suffered in the previous fiscals ending March 2021. While operating profitability has improved in fiscals 2022 and 2023, it remains modest and sustained improvement in the same would be a key monitorable for the medium term. * Modest networth: Networth is small and estimated at over INR5.5-6 crores as on March 31,2023. Networth had eroded in the past due to operating losses suffered, however the same has strengthened in fiscal 2022 and 2023 with improvement in operating profitability. Networth should continue to improve in the medium term due to steady accretion to reserves, though continue to remain modest. Strengths: * Extensive experience of the promoters: The promoters' experience of almost two decades in the steel products industry has enabled their deep understanding of market dynamics and establish relationships with customers and suppliers. MRISCL should continue to benefit from the extensive industry experience of its promoters. * Moderate capital structure and debt protection measures: The capital structure is moderate as reflected in gearing and total outside liabilities to adjusted networth ratios of 0.05-0.1 times and 0.20-0.25 times as on March 31,2023 (0.01 times and 0.13 times as on March 31, 2022) due to controlled reliance on external debt. The debt protection measures are adequate as reflected in estimated interest coverage and net cash accruals to adjusted debt ratios of above 15 times and 1.5 times respectively for fiscal 2023 as compared to 23.15 times in fiscal 2022. In absence of any major debt funded capex expected in the medium term, the capital structure and debt protection measures are expected to continue to remain moderate. Liquidity: Poor Cash accruals are expected to remain modest around INR0.60- 0.0.70 crores for fiscal 2024 and 2025, against nil repayment obligation. Bank limit was utilized negligibly at 8% on average over the 12 months through March 2023. Unencumbered cash and cash equivalents were modest and stood at over INR5 lakhs as on March 31, 2023. Outlook: Stable CRISIL Ratings believes MRISL will continue to benefit from the extensive industry experience of the promoters. Rating Sensitivity factors Upward factors * Increase in revenue and sustenance in operating margin, leading to cash accrual of above INR1 crore per fiscal * Sustenance of capital structure, debt protection metrics and controlled working capital cycle Downward factors * Significant decline in revenue or operating profit resulting in lower net cash accruals below 0.40 crore * Any major debt funded capex, weakening the liquidity profile of the company Incorporated in 2000, MRISL, manufactures mild steel ingots at Puducherry. Operations are managed by Mr. Paul Varghese. METRO ECO: CARE Keeps D Debt Rating in Not Cooperating Category --------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Metro Eco Green Resorts Limited (MEGRL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 119.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated May 24, 2022, placed the rating(s) of MEGRL under the 'issuer non-cooperating' category as MEGRL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. MEGRL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated April 9, 2023, April 19, 2023, April 29, 2023 and May 5, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings assigned to the bank facilities of MEGRL have been revised on account of delays in debt servicing recognized from publicly available information i.e., FY22 audit report available from ROC Filings. Metro Eco Green Resorts Limited (MEGRL) was originally constituted as Continental Hatcheries Pvt. Ltd., in August 1985, to carry out the hatchery business. However, the same was discontinued in November-1990 and a fresh certificate of incorporation was issued in June-2008 vide which the name and objective of the company was changed. MEGRL has set-up a premium resort in Pallanpur (near Chandigarh), Punjab, by the name- 'Oberoi Sukhvillas'. The resort has 46 villas, 11 tents, one presidential suite and two executive suites. Besides, it also has a restaurant, a bar, a spa, swimming pool, a banquet facility and a business center. NAHAR LOGISTICS: CARE Lowers Rating on INR7.17cr LT Loan to B- -------------------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of Nahar Logistics Park Private Limited (NLPPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 7.17 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category and Revised from CARE B; Stable Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated May 12, 2022, placed the rating(s) of NLPPL under the 'issuer non-cooperating' category as NLPPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. NLPPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated March 28, 2023, April 7, 2023, April 17, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings have been revised on account of non-availability of requisite information. Nahar Logistics Park Private Limited (NLPPPL) was established in November, 2011 as a private limited company and is currently being managed by Mr. Jasdeep Singh, Mr. Jagdial Singh and Mr. Sanjay Sehgal, as its directors. The company is engaged in the providing leasing services of warehouses at its facility located in Ludhiana, Punjab. Besides this, the directors are also engaged in other group concerns namely, Reliant Tradelinks Private Limited and Nahar Enterprises, based in Chandigarh and is engaged in transportation and logistics business. NAMAN BROADCASTINGS: Insolvency Resolution Process Case Summary --------------------------------------------------------------- Debtor: Naman Broadcastings and Telecommunications Private Limited 24/27-28, 2nd Floor, West Patel Nagar, New Delhi - 110008 Insolvency Commencement Date: April 24, 2023 Estimated date of closure of insolvency resolution process: October 21, 2023 (180 Days) Court: National Company Law Tribunal, New Delhi Bench Insolvency Professional: Reetesh Kumar Agarwal Unit no 531, S.G. Shopping Mall, D.C. Chowk, Rohini Sector-09 Delhi -110085 Email: carkagarwal@gmail.com Email: resolvenbpl@gmail.com Last date for submission of claims: May 8, 2023 NAVNIT AUTOSPARES: CARE Keeps D Debt Rating in Not Cooperating -------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Navnit Autospares (Nagpur) Private Limited (NAPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 9.60 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated May 5, 2022, placed the rating(s) of NAPL under the 'issuer non-cooperating' category as NAPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. NAPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated March 21, 2023, March 31, 2023, April 10, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Navnit Autospares (Nagpur) Private Limited was incorporated in 2002 and is engaged in the distribution of commercial vehicle spare parts of Tata Motors Limited. PRASANTHI CASHEW: CRISIL Reaffirms B- Rating on INR50cr Loan ------------------------------------------------------------ CRISIL Ratings has reaffirmed its rating on the bank facilities of Prasanthi Cashew Company (PCC) at 'CRISIL B-/Stable'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 10 CRISIL B-/Stable (Reaffirmed) Export Packing 20 CRISIL B-/Stable (Reaffirmed) Credit & Export Bills Negotiation/ Foreign Bill discounting Proposed Fund- 50 CRISIL B-/Stable (Reaffirmed) Based Bank Limits The rating continues to reflect the firm's large working capital requirement and weak financial risk profile. These weaknesses are partially offset by the extensive experience of the promoter in the cashew industry. Key Rating Drivers & Detailed Description Weaknesses: * Large working capital requirement: The operations of the firm are working capital intensive as reflected by the gross current asset (GCA) days. The firm had GCA days of 609 days as on March 31, 2022, and are estimated 649 days as on March 31, 2023, on account of large pile up of inventory and stretched receivables. The debtor days and inventory days were 192 days and 309 days, respectively as on March 31, 2022, and are estimated to be 180 days and 270 days, respectively as on March 31, 2023. The operations are expected to remain working capital intensive over the medium term. * Weak financial risk profile: PCC's financial risk profile is constrained by small net worth of INR9.58 crore and moderate gearing at 2.87 times as on March 31, 2022. The same are estimated at INR10 crore and 2.6 times, respectively as on March 31, 2023. The debt protection metrics were moderate, reflected in interest coverage and net cash accrual to total debt ratio of 1.36 times and 0.01 times, respectively, for fiscal 2022. The same are estimated at 2.32 times and 0.04 times, respectively, for fiscal 2023. Strength: * Extensive experience of the promoter: The promoter's extensive experience in the industry and established relationships with suppliers and customers should support the business. Liquidity: Poor The bank limit utilisation is high at around 97.59 percent for the past twelve months ended December 2022. Cash accruals are expected to be over INR0.9-1.4 crore which are insufficient against term debt obligation of INR3.5 crore over the medium term. Current ratio is healthy at 2.95 times on March 31, 2022. The promoters are likely to extend support in the form of equity and unsecured loans to meet its working capital requirements and repayment obligations. Outlook: Stable CRISIL Ratings believes PCC will continue to benefit from the industry experience of its promoter. Rating Sensitivity factors Upward factors: * Increase in revenue by more than 25%, with profitability remaining above 2.5%, leading to increased cash accruals * Improvement in the working capital cycle with reduction in GCA days * Improvement in liquidity profile Downward factors: * Further stretch in the working capital days with GCAs more than 750 days * Stretch in liquidity, leading to delay in debt servicing * Decline in financial support from the proprietor PCC, established by Mr Mohan Chandra Nair in 1996 in Kerala, processes and exports cashew kernels. PROGNOSYS MEDICAL: CRISIL Reaffirms B- Rating on INR4cr Cash Loan ----------------------------------------------------------------- CRISIL Ratings has reaffirmed its 'CRISIL B-/Stable/CRISIL A4' ratings on the bank facility of Prognosys Medical Systems Private Limited (PMSPL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 2 CRISIL A4 (Reaffirmed) Bank Guarantee 9 CRISIL A4 (Reaffirmed) Cash Credit 2.5 CRISIL B-/Stable (Reaffirmed) Cash Credit 4 CRISIL B-/Stable (Reaffirmed) Letter of Credit 0.5 CRISIL A4 (Reaffirmed) Letter of Credit 1 CRISIL A4 (Reaffirmed) The ratings reflect PMSPL's presence in a highly fragmented industry with limited size, working capital-intensive operations and modest scale of operations amidst intense competition. These weaknesses are partially offset by the extensive experience of the promoters. Key Rating Drivers & Detailed Description Weaknesses: * Modest scale of operations amidst intense competition: With revenue of INR37.97 crore for fiscal 2022, scale remains modest in the intensely competitive business. The segment is highly fragmented and has numerous small-scale unorganised players catering to local demand, which may restrict significant improvement in scale of operations. * Subdued financial risk profile: Capital structure is aggressive, as reflected in total outside liabilities to tangible networth ratio of -92.35 times as on March 31, 2022, due to extensive dependence on external borrowings to meet working capital requirements. Continued operating losses have led to muted debt protection metrics. Financial risk profile is likely to remain weak over the medium term. * Working capital-intensive operations: Gross current assets have been 400-800 days over the last few fiscals. Receivables and inventory levels were high at 213 days and 162 days, respectively, as on March 31, 2022. Delayed payments by customers, primarily government undertaking companies, and revenue booking towards the last quarter resulted in stretched receivables. Strength: * Extensive industry experience of the promoters: Presence of more than two decades in the health equipment industry has enabled the promoters to understand market dynamics and establish strong relationships with suppliers and customers Liquidity: Stretched Bank limit utilisation is high at around 90.69 percent for the past twelve months ended December 2022. Current ratio is healthy at 1.63 times on March31, 2022. The promoters are likely to extend support in the form of equity and unsecured loans to meet its working capital requirements and repayment obligations. Negative net worth limits its's financial flexibility, and restrict the financial cushion available to the company in case of any adverse conditions or downturn in the business. Outlook: Stable CRISIL Ratings believes PMSPL will continue to benefit from its promoters' extensive experience Rating Sensitivity factors Upward factors * Steady improvement in scale of operations and sustenance of operating margin leading to higher cash accrual of INR0.5 crores * Improvement in working capital management Downward factors * Decline in revenue or profitability leading to lower cash accruals * Further stretch in working capital management leading to weakening of the financial risk profile and liquidity PMSPL was established in 2003 in Bengaluru (Karnataka) by Mr V KrishnaPrasad, Mr Kesava and Mr Sunil Monga. The company designs, manufactures, integrates and installs products related to digital radiology equipment. It also manufactures other related accessories and provides end-to-end solutions in the healthcare industry through the integrated delivery of medical devices, communication equipment, computers, servers, software supply, and installation and maintenance of the same on a turnkey basis. PUNJAB RENEWABLE: Ind-Ra Affirms BB+ Long Term Issuer Rating ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has revised Punjab Renewable Energy Systems Private Limited's (PRESPL) Outlook to Negative from Stable while affirming its Long-Term Issuer Rating at 'IND BB+'. The instrument-wise rating actions are: -- INR575 mil. (increased from INR200 mil.) Fund-based facilities affirmed; Outlook revised to Negative from Stable with IND BB+/Negative/IND A4+ rating; and -- INR175 mil. (reduced from INR550 mil.) Proposed term loan affirmed; Outlook revised to Negative from Stable with IND BB+/Negative rating. Analytical Approach: Ind-Ra has taken a consolidated view of PRESPL and its wholly-owned subsidiaries, PRES Clean and Green Energy Private Limited (PCGEPL), Punjab Renewable Power Private Limited (PRPPL), PRES Oorja Private Limited (POPL) and PRES Regenerative Private Limited (PRPL), owing to the strong operational and strategic linkages among them. PRESPL has extended a corporate guarantee to the debt of PCGEPL, PRPPL and PRPL. The Outlook revision reflects the continued EBITDA losses incurred by the company at the consolidated level during FY22-9MFY23, resulting in weak credit metrics. Furthermore, the liquidity position remained poor during this period, led by delays in the proposed equity infusion. Ind-Ra expects the company to continue to incur EBITDA losses over the short term. Key Rating Drivers On a consolidated basis, PRESPL continued to report EBITDA losses of INR173.05 million in FY22 (FY21: loss of INR0.95 million; FY20: loss of INR51.21 million) due to an increase in price of biomass and a delay in the execution of client contracts. During 9MFY23, it reported an EBITDA loss of INR120.47 million, due to the continued increase in the biomass prices and continued low absorption of fixed costs. The profitability margins remain susceptible to fluctuations in biomass prices, as the availability of the same primarily depends on the harvesting period and monsoon. Ind-Ra expects the company to continue to incur EBITDA losses over the short term and show an improvement over the medium-to-long term post infusion of the proposed equity and successful completion of the envisaged capex. The ratings also continue to reflect PRESPL's weak credit metrics due to the EBITDA losses. Ind-Ra expects the credit metrics to have remained weak in FY23 and will continue to do so in the medium term due to the debt-led capex plans and weak profitability. However, the extent of the impact shall depend upon the company's ability to expand its supply chain management (SCM) segment to minimize price fluctuations, along with its ability to pass on price fluctuations to its customers. Furthermore, the revision of the price escalation clause in the existing and new contracts will have a positive impact on the operational profitability. Liquidity Indicator – Poor: The average maximum utilization of PRESPL's working capital limit was 80.68% over the 12 months ended March 2023. On a consolidated basis, the cash flow from operations (CFO) had remained negative at INR284.79 million in FY22 (FY21: negative INR134.06 million, FY20: negative INR171.22 million). Ind-Ra expects the CFO to have declined further in FY23 due to unfavorable changes in working capital and continued EBITDA losses. In FY22, PRESPL infused fresh equity of INR300 million through the onboarding of Mitsui & Company Limited. There has been no equity infusion in FY23. PRESPL is planning to raise INR2,000 million through equity in FY24 which will provide some cushion to the liquidity. The net cash cycle improved to 140 days in FY22 (FY21: 187 days, FY20: 256 days) because of a decline in the inventory holding period to 118 days (169 days, 203 days) and a decline in the receivable period to 44 days (72 days, 72 days). PRESPL's cash balance stood at INR34.34 million at FYE22 (FYE21: INR34.89 million, FYE20: INR163.04 million). It has repayment obligations of INR230.66 million in FY24 and INR164.69 million in FY25, which are likely to be met through equity infusions and internal accruals. In FY22, PRESPL incurred capex of INR115.68 million, funded through the equity infusion. According to the management, PRESPL incurred around INR160.87 million of capex in FY23 and will incur around INR840 million in FY24 for steam, build-own-operate and transfer (BOOT), SCM and for the construction of briquette manufacturing units, which will be met through equity infusions and term debt. Hence, PRESPL's ability to raise funds through availing of debt and infusion of equity against the same remain critical growth aspects for the company. Moreover, the debt and equity raising against the capex projected for FY24 are yet to be tied up by the company. The ratings are also constrained by the continued small scale of operations. On a consolidated basis, the revenue grew to INR927.21 million in FY22 (FY21: INR670.98 million, FY20: INR341.85 million), although at a lower rate as the company unable to execute two/three contracts. During 9MFY23, the company achieved revenue of INR973.88 million. Ind-Ra expects the revenue to have increased further to above INR1,150 million in FY23, mainly on the account of an increase in briquettes sales. The successful implementation of the projects and the achievement of growth from new projects will remain a key rating monitorable. However, the ratings remain supported by PRESPL's presence in each stage of its industry value chain. PRESPL operates in various segments such as the manufacturing of briquettes and pellets, the supply of raw biomass and steam, and the operation and maintenance of boilers. In addition, PREPSL, through its subsidiaries - PRPPL, PRPL and PCGEPL, has entered into long-term BOOT contracts to supply steam. It has established POPL for operating its briquette manufacturing units. The ratings also benefit from PRESPL's strong customer base. The company caters to well-established players such as Sun Pharmaceutical Industries Limited, L'Oreal India Private Limited and Glenmark Life Sciences Limited ('IND AA-'/Stable) in the BOOT segment, and Pepsico India Holdings Private Limited and Cipla Limited ('IND AAA'/Stable) for steam generation in the operations and maintenance (O&M) segment. Furthermore, the company has signed various contracts with existing and new reputed clients such as Britannia Industries Limited, Aarti Group, JSW Cement Limited ('IND A+'/Stable), JK Cement Limited ('IND AA+'/Stable), and Ultratech Cement Limited ('IND AAA'/Stable) in the BOOT, O&M and SCM segments. The ratings also benefit from the government support offered to the biomass industry. Furthermore, as informed by the management to the agency, PRESPL is the only organized player with integrated operations in the domestic industry. The ratings continue to factor in the promoter's decade-long experience in the biomass industry. Also, PRESPL is backed by various financial and strategic investors, who hold around 77.53% stake in the company. The management expects continued funding support from strategic investors in the near term, which could lead to an improvement in its liquidity position. This has helped the company expand in the bio-energy sector. Furthermore, PRESPL is being led by personnel with a considerable experience in biomass aggregation and SCM, and the commissioning, O&M of biomass briquettes-based steam generation plants. On a standalone basis, in FY22, PRESPL reported revenue of INR908.02 million (FY21: INR731.17 million, FY20: INR353.96 million) and witnessed EBITDA losses of INR211.26 million (FY21: INR16.60 million). Rating Sensitivities Negative: Inability to infuse equity or continued EBITDA losses will be negative for ratings. Positive: A substantial improvement in liquidity through timely infusions of equity and an improvement in the profitability, all on a sustained basis, will be positive for the ratings. Company Profile PRESPL is engaged in the supply of biomass, briquettes and steam to various process plants through SCM, steam generation and O&M model, briquette manufacturing, and the BOOT model. QUALIT AGRO: CRISIL Lowers Rating on INR13cr LOC to D ----------------------------------------------------- CRISIL Ratings has downgraded its rating on the bank facilities of Qualit Agro processors (QAP) to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B/Stable Issuer Not Cooperating' due to delays in servicing debt obligation Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Line of Credit 13 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B/Stable ISSUER NOT COOPERATING') Packing Credit 7 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B/Stable ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with QAP for obtaining information through letters and emails dated December 24, 2022 and February 17, 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 QAP, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on QAP is consistent with 'Assessing Information Adequacy Risk'. QAP is a proprietorship firm engaged in the processing and trading of agro commodities. The firm is based out of Rajapalayam, TN. It was established in 2009 by Mr. Valliyin selvan. SADGURU POLY: CARE Keeps B- Debt Rating in Not Cooperating ---------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Sadguru poly Industries (SPI) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 7.14 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated March 7, 2022, placed the rating(s) of SPI under the 'issuer non-cooperating' category as SPI had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. SPI continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated January 21, 2023, January 31, 2023, February 10, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Morbi-based (Gujarat) SPI was established on August 1, 2016 by 12 partners. SPI is into the business of manufacturing Polypropylene (PP) Woven Bags and PP Woven Fabrics mainly from different types of plastic granules. SPI has completed greenfield project for manufacturing of PP Woven bags and fabrics in June 2017 with an installed capacity of 2,074 Metric Tonnes per Annum (MTPA) and a project cost of INR7.41 crore (including INR1.11 crore of working capital margin) via debt equity mix of 1.59:1.00 times. The final products of SPI i.e., PP Woven Bags and PP Woven Fabrics are used as packaging material for food products, pulverous materials, chemicals, fertilizers, grains, salt, sand etc. SPI commenced its operations from July, 2017 onwards, from its manufacturing facility located at Tankara, Morbi (Gujarat). The firm purchases majority of raw materials locally while few raw materials are also imported from various countries while it sells its final products to various states pan-India via its own sales personnel. SAKSHAM FOOD: CARE Lowers Rating on INR3.36cr LT Loan to B ---------------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of Saksham Food Industries (SFI), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 3.36 CARE B; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category and Revised from CARE B+; Stable Short Term Bank 4.00 CARE A4; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated April 29, 2022, placed the rating(s) of SFI under the 'issuer non-cooperating' category as SFI had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. SFI continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated March 15, 2023, March 25, 2023, April 4, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings assigned to the bank facilities of SFI have been revised on account of non-availability of requisite information. Established in July 2017, Saksham Food Industries (SFI) was promoted by Mr. Sandeep Agrawal to initiate business of rice milling and processing. The firm has successfully set up its rice milling and processing plant with aggregate project cost of INR9.31 crore funded at debt equity of 3.66 times. The rice milling and processing plant of the firm is located at Surajpur, Chhattisgarh with an installed capacity of 39,680 tons per annum. The firm has commenced commercial operations at its plant from August 2018 onwards. The firm mainly process non-basmati rice. It procures paddy from local farmers and traders and sells non-basmati rice to wholesalers. SULAV FLOUR: CRISIL Lowers Rating on INR5.5cr Term Loan to B ------------------------------------------------------------ CRISIL Ratings has downgraded its rating on the bank facilities of Sulav Flour Mill (SFM) to 'CRISIL B/Stable' from 'CRISIL B+/Stable'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 2.5 CRISIL B/Stable (Downgraded from 'CRISIL B+/Stable') Proposed Cash 1 CRISIL B/Stable (Downgraded Credit Limit from 'CRISIL B+/Stable') Term Loan 5.5 CRISIL B/Stable (Downgraded from 'CRISIL B+/Stable') The downgrade reflects lower than expected revenue generation due to operational challenges coupled with low demand in intensively competitive wheat flour and milling segment leading to stretched liquidity. The rating continues to reflect modest scale of operations and susceptibility of profitability of raw material prices and climatic conditions. These weaknesses are partially offset by extensive experience of the proprietor in the milling and agricultural industry. Key Rating Drivers & Detailed Description Weaknesses: * Modest scale of operations: Revenue of the firm is estimated to be around INR10 crore for fiscal 2023 against INR4.6 crore in fiscal 2022. Modest scale reflects delay in ramp up of operations leading to low profitability. Furthermore, firm has faced operational challenges as its commercial operations commenced only in last lag of fiscal 2020. Ramp up of operations leading to improvement in revenue and profitability remains key rating sensitivity factor. * Susceptibility of profitability to raw material prices and climatic conditions: The yield of agricultural commodities/crops are dependent on adequate and timely monsoon period. SFM is thereby exposed to the risk of limited availability of its key raw material during a weak monsoon. Also, production may be impacted by-pests or crop infection leading to higher unpredictability in production and pricing of Agri commodities and derived products. Strength: * Extensive experience of the proprietor in the milling and agricultural industry: With over 2.5 decades of participation in the industry, the proprietor has gained extensive understanding of the market dynamics, establishing strong relationship with customers and suppliers. Business risk profile is expected to improve over the medium term on back of experienced management. Liquidity: Stretched Bank limit utilization is high at around 99.4 percent for the past nine months ended December 2022. Cash accrual are expected to be around INR80 lakhs which are insufficient against term debt obligation of around INR96 lakhs per fiscal over the medium term. In fiscal 2023, promoter is estimated to have infused INR100 lakhs in form of capital to meet repayment obligation. Timely ramp up of operations or funding support of the proprietor remains critical for debt servicing. Current ratio is estimated to be comfortable around 1.5 times on March 31, 2023. Moderate cash and bank balance of around INR30-40 lakhs as on March 31, 2023 aid working capital requirement. Outlook: Stable CRISIL Ratings believes that SFM will continue to benefit from the extensive experience of the proprietor. Rating Sensitivity factors Upward Factors * Substantial improvement in scale of operations leading to net cash accruals to repayment obligation ratio of more than 1 time * Improved working capital management Downward Factor * Decline in revenue to below than INR10 crore along with lower operating margins * Increase in working capital requirement worsening liquidity position Established in 2017, Sulav Flour Mill is a proprietary concern of Mr. Latifuddin Biswas. The firm is engaged in milling and production of whole wheat flour. The firm has one unit located in Ramchandrapur, West Bengal and caters to whole sellers from the nearby districts such as Birbhum, Malda, Murshidabad, etc. THYME & REASON: Insolvency Resolution Process Case Summary ---------------------------------------------------------- Debtor: Thyme & Reason Hospitality LLP A-1503, Inez Tower A Co-Op. Hsg Society Ltd. Floor-I5, Mori Road, Sonawala Compound, Mahim (w) NA Mumbai 400016 Insolvency Commencement Date: April 19, 2023 Estimated date of closure of insolvency resolution process: October 16, 2023 (180 Days) Court: National Company Law Tribunal, Mumbai Bench Insolvency Professional: Gajesh Labhchand Jain 501, Clifton Society, Shastri Nagar, Raviraj Oberoi Marg, Andheri West, Mumbai -400053 Email: gajeshjain@gmail.com C-602, Remi Biz Court, Off Veera Desai Road, Azad Nagar, Andheri West, Mumbai -400053 Email: cirp.thymeandreasonhospitality@gmail.com Last date for submission of claims: May 9, 2023 VIKAS PROCON: Insolvency Resolution Process Case Summary -------------------------------------------------------- Debtor: Vikas Procon Private Limited Shop No.1, 3rd Floor, Building No.9/11, Old Hanuman Cross Lane, Kalbadevi Mumbai - 400 002 Insolvency Commencement Date: April 19, 2023 Estimated date of closure of insolvency resolution process: October 16, 2023 Court: National Company Law Tribunal, Mumbai Bench Insolvency Professional: Mr. Vinod Radhakrishnan Nair A-108, Om Rachana CHS, Sector-17, Vashi, Navi Mumbai - 400705 Email: vinod@nairca.com Email: cirpvikasproconpvtltd@gmail.com Last date for submission of claims: May 4, 2023 VISHWANATH SINGH: CARE Keeps B- Debt Ratings in Not Cooperating --------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Vishwanath Singh Enterprises (VSE) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 3.00 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Long Term/ 2.50 CARE B-/CARE A4; ISSUER NOT Short Term COOPERATING; Rating continues Bank Facilities to remain under ISSUER NOT COOPERATING category Rationale & Key Rating Drivers CARE Ratings Ltd. had, vide its press release dated May 5, 2022, placed the rating(s) of VSE under the 'issuer non-cooperating' category as VSE had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. VSE continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated March 21, 2023, March 31, 2023, April 10, 2023. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Rewa (Madhya Pradesh) based Vishwanath Singh Enterprise (VNS) was established in 1984 as a partnership firm and run by Mr. Vishwanath Singh, Mr. Rahul Singh and Mr. Prashant Singh, which is engaged into road construction services. VNS secures its major portion of tenders through open bidding from Government of Madhya Pradesh. The firm has successfully completed various road construction projects majorly in Madhya Pradesh. ZESTMONEY: To Secure New Funding After Founders Resign ------------------------------------------------------ Tech in Asia reports that India-based fintech firm ZestMoney said it is finalizing a new funding round from existing shareholders following the resignation of all three of the firm's founders. According to the report, ZestMoney said it's expected to receive new funding in the "next few weeks" from investors that include Flourish VC, Quona Capital, Zip, Omidyar Network India, and Scarlet Digital. To replace the three co-founders, the company has also introduced a new leadership team that includes vice president of finance Mohit Chhajer, chief banking officer Mandar Satpute, and senior vice president of growth Abhishek Sharma. ZestMoney said the leadership transition will take place over the next three to four months, Tech in Asia relays. Tech in Asia relates that the company claims to be one of India's first and largest digital EMI providers. Founded in 2015, the firm was valued at US$445 million last year, according to TechCrunch. In her LinkedIn post, outgoing CEO Lizzie Chapman said she and the other two founders will remain "significant" shareholders in the company. Tech in Asia notes that these developments come after an acquisition deal with PhonePe reportedly fell through, as ZestMoney failed to meet due diligence standards. Following this, the startup laid off over 100 people or 20% of its workforce in April. ===================== N E W Z E A L A N D ===================== BTZQ LIMITED: Creditors' Proofs of Debt Due on June 3 ----------------------------------------------------- Creditors of BTZQ Limited are required to file their proofs of debt by June 3, 2023, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 3, 2023. The company's liquidator is: Brenton Hunt PO Box 13400 City East Christchurch 8141 CONSTRUCT CIVIL: Creditors' Proofs of Debt Due on July 10 --------------------------------------------------------- Creditors of Construct Civil Holdings Limited are required to file their proofs of debt by July 10, 2023, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 10, 2023. The company's liquidators are: Christopher Carey McCullagh Stephen Mark Lawrence C/- PKF Corporate Recovery PO Box 3678 Auckland 1140 HERKT BROZ: Creditors' Proofs of Debt Due on June 30 ---------------------------------------------------- Creditors of Herkt Broz Limited are required to file their proofs of debt by June 30, 2023, to be included in the company's dividend distribution. The High Court at Auckland appointed Garry Whimp of Blacklock Rose Limited as the company's liquidator on May 5, 2023. NEW ZEALAND: Construction Insolvencies up 53% Year-on-Year ---------------------------------------------------------- Radio New Zealand reports that the number of business failures has jumped by more than a quarter from a year ago, according to a new report from an insolvency firm. RNZ, citing data from Auckland-based BWA Insolvency, discloses that there were 355 formal insolvency proceedings lodged in New Zealand in the three months ended March - a 28% increase from the 277 recorded for the same period in 2022. Construction led the way with 90 business failures, followed by property and real estate, with 39 insolvency proceedings. "Construction insolvencies were up 53% year-on-year and it's no surprise, really," RNZ quotes BWA Insolvency founder Bryan Williams as saying. He said businesses were feeling the pressure from various economic headwinds. "It is inevitable as the impact of price increases and reduced demand start to bite. In the construction sector, you might need the money from project B to finish off project A, but if project C doesn't come in, the whole thing starts to fall over." Many of the failed businesses would have already been facing issues for a number of years, Mr. Williams said. "I think again that is a sign of the economic circumstances - and Covid tak-ing that one as an example. Then, there was a significant flush of money that came into the economy and that camouflaged the fundamentals that were potentially frail inside a business," RNZ quotes Mr. Williams as saying. A rush of money at the time meant those issues were not of concern, he said. Total insolvencies fell 22% compared to the final quarter of 2022, which Mr. Williams believed was mainly due to timing. The retail sector saw a 21 percent jump in insolvencies compared to the first three months of 2022, while manufacturing recorded a 61 percent fall. Business services also recorded a fall in insolvencies, down 42 percent. RNZ relates that Mr. Williams said the year-on-year increase was not surprising given the economic pressures, but he felt the economy did not fare as badly as he thought. He said with inflation likely to have peaked, along with the Reserve Bank close to peak interest rates, and a likely boost to construction on the cards following the recent severe weather, he still expected insolvencies to rise this year. "Companies that have held on by the skin of their teeth through the Covid era now confront the headwinds of anti-inflationary measures." READY TO EAT: Court to Hear Wind-Up Petition on May 22 ------------------------------------------------------ A petition to wind up the operations of Ready To Eat Limited will be heard before the High Court at Tauranga on May 22, 2023, at 10:00 a.m. The Commissioner of Inland Revenue filed the petition against the company on March 7, 2023. The Petitioner's solicitor is: T. Saunders Inland Revenue, Legal Services 21 Home Straight PO Box 432 Hamilton TAURUS INTERIORS: Court to Hear Wind-Up Petition on May 26 ---------------------------------------------------------- A petition to wind up the operations of Taurus Interiors & Construction Limited will be heard before the High Court at Auckland on May 26, 2023, at 10:00 a.m. The Commissioner of Inland Revenue filed the petition against the company on April 22, 2023. The Petitioner's solicitor is: Cloete Van Der Merwe Inland Revenue, Legal Services 5 Osterley Way Manukau City Auckland 2104 ===================== P H I L I P P I N E S ===================== DITO TELECOMMUNITY: PHP64 Billion in Loans Falling Due on May 26 ---------------------------------------------------------------- Miguel R. Camus at Philippine Daily Inquirer reports that debt woes are mounting for Davao-based businessman Dennis A. Uy as his telecommunications venture with China Telecom seeks a fresh extension to a nearly PHP64 billion worth of loans falling due next week. Dito Telecommunity (DitoTel), which is in the midst of a network rollout, has several bank loans with Bank of China's overseas and domestic branches as well as China Minsheng Banking Corp. Ltd. that will mature on May 26, 2023 after an extension was granted last year, the Inquirer discloses citing May 15 financial report of listed parent firm Dito CME Holdings. Dito CME said the end-March carrying value of the loans with Bank of China Ltd.-Singapore branch stood at PHP10.87 billion; China Minsheng Banking Corp. Ltd Shanghai Pilot Free Trade Zone Branch, PHP25.96 billion; Bank of China-Hong Kong, PHP24.25 billion, and Bank of China-Manila worth PHP2.55 billion. Dito CME president Ernesto "Eric" Alberto told the Inquirer they were confident in getting another debt extension as the group finalizes a separate long-term loan facility worth $3.9 billon (PHP217 billion). "These bridge loans are to be paid and absorbed via the $3.9-billion project finance long-term loan facility currently being finalized by DitoTelecommunity's senior management, with target closing within the year," the Inquirer quotes Mr. Alberto as saying in a text message. "[F]unding for the telco greatly helped by partner ChinaTel, which has both the better financial muscle and creditor relationships to raise and arrange such magnitudes of funding requirement for the project," he added. The Inquirer relates that Dito CME said in the filing it was also planning potential fundraising exercises this year, including reviving a share sale that was cancelled in 2022. As of end-March, Dito CME had interest-bearing debt of PHP85.98 billion, down 2.5 percent from the level at the end of December last year. It also recorded a capital shortfall of PHP28.5 billion at the end of the first quarter. Last Feb. 13, the group sealed another Chinese currency (CNY) loan deal worth PHP5.2 billion loan with shareholders. At the end of March, it made drawdowns of CNY165 million or PHP1.3 billion, the filing showed. In a separate statement, Dito CME said it reduced operating losses during the quarter to PHP3 billion, the Inquirer relays. It said losses were blunted by "strict cost-containment initiatives" and a sharp increase in foreign exchange gains of PHP4.32 billion. This was a reversal of foreign exchange losses of PHP2.3 billion last year. Headquartered in Taguig, Philippines, DITO CME Holdings Corp. engages in the provision of telecommunications, multimedia, and information technology services. ================= S I N G A P O R E ================= BARCLAYS CAPITAL: Members' Final Meeting Set for June 16 -------------------------------------------------------- Members of Barclays Capital Futures (Singapore) Private Limited will hold their final general meeting on June 16, 2023, at 10:00 a.m., at 80 Robinson Road, #02-00, in Singapore. At the meeting, Tay Tuan Leng, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. DIGITAL ALPHA: Court to Hear Wind-Up Petition on June 12 -------------------------------------------------------- A petition to wind up the operations of Digital Alpha Group Pte Ltd will be heard before the High Court of Singapore on June 12, 2023, at 10:00 a.m. The Petitioner's solicitors are: Withers Khattarwong LLP 80 Raffles Place #25-01 UOB Plaza 1 Singapore 048624 DRINIFINI BEVERAGES: Court to Hear Wind-Up Petition on May 26 ------------------------------------------------------------- A petition to wind up the operations of Drinifini Beverages Pte Ltd will be heard before the High Court of Singapore on May 26, 2023, at 10:00 a.m. Airwallex (Singapore) Pte. Ltd filed the petition against the company on May 3, 2023. The Petitioner's solicitors are: K&L Gates Straits Law LLC 9 Raffles Place #32-00 Republic Plaza Singapore 048619 GLOBAL ADVENTURE: Members' Final Meeting Set for June 15 -------------------------------------------------------- Members of Global Adventure Pte. Ltd., Global Bravery Pte. Ltd, Global Conquest Pte. Ltd and Global Car Carriers Holdings Pte. Ltd will hold their final general meeting on June 15, 2023, at 9:00 a.m., 10:00 a.m., 11:00 a.m., and 12:00 p.m. at at 10 Anson Road, #29-16 International Plaza, in Singapore. At the meeting, Mick Aw Juay Sze Sin, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. SARAFIELD INVESTMENTS: Creditors' Proofs of Debt Due on June 19 --------------------------------------------------------------- Creditors of Sarafield Investments Pte. Ltd. are required to file their proofs of debt by June 19, 2023, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 8, 2023. The company's liquidator is: Goh Tiong Hong c/o 120 Robinson Road #16-01, Singapore 068913 ============= V I E T N A M ============= NGHI SON: At Risk of Shutdown With Debt Talks Stalled ----------------------------------------------------- Nikkei Asia reports that the company running Vietnam's largest oil refinery is at risk of defaulting on debt as soon as November, raising the specter of a shutdown as talks to bring the government on board with a restructuring plan remain stalled. Nghi Son Refinery and Petrochemical, operator of the refinery in the northern province of Thanh Hoa, is a joint venture led by Japanese oil major Idemitsu Kosan along with Kuwait Petroleum Europe, Mitsui Chemicals and state-run Vietnam Oil and Gas Group, also known as PetroVietnam, according to the Nikkei. The Nghi Son refinery, which opened in 2018, is designed to process 200,000 barrels of crude oil daily, the Nikkei says. It is operating about 10% above that capacity. The facility supplies 30%-40% of Vietnam's gasoline, and a shutdown would lead to severe shortages. The $9 billion project also serves as a symbol of economic cooperation between Japan and Vietnam. "We would like further support from the Japanese and Vietnamese governments," So Hasegawa, general director of NSRP, told visiting lawmakers from Japan's ruling Liberal Democratic Party on May 7, the Nikkei relays. According to the report, NSRP seeks an extension on a project finance loan from a group of banks led by the state-run Japan Bank for International Cooperation. When sales slumped during the pandemic, the company redirected operating capital toward repaying debt, leaving it strapped for cash, the Nikkei states. Though demand has recovered, the jump in crude prices sparked by Russia's invasion of Ukraine has driven up the refinery's procurement costs. And the company's interest burden is expected to rise, squeezing finances further. NSRP makes debt payments every May and November. It has secured the $375 million needed for this month, but the $277 million for its next payment will be difficult, the Nikkei says. The refinery is set to shut down for two months starting in August for regular maintenance, cutting off the company's income stream. In anticipation of a cash crunch, NSRP and its lenders are negotiating a debt restructuring plan, the Nikkei notes. The banks have proposed extending repayment of roughly $2 billion in loans for more than three years. But all four investors in NSRP need to agree on the proposal, and PetroVietnam has not done so, arguing that the Ministry of Industry and Trade must sign off on it. Other investors including Idemitsu have sent a letter to Vietnam's government seeking its approval, the Nikkei says. But Hanoi remains negative on the extension proposal, with talks at an impasse. Vietnam appears aware that the Japanese side cannot afford to let Nghi Son shut down, given the likely economic and diplomatic consequences. One insider speculated that some in Vietnam's ruling Communist Party want to pin the resulting turmoil on political opponents, or that officials are trying to avoid responsibility. Nghi Son, together with Dung Quat refinery in the central province of Quang Ngai, serves around 70% of Vietnam's demand for petroleum products. While Nghi Son is struggling for Hanoi's support, Dung Quat, operated by PetroVietnam, is making strides toward boosting output. Idemitsu faces over JPY90 billion ($659 million) in losses tied to the project. Its woes could lead other Japanese companies to reevaluate the risks of doing business in Vietnam. =============== X X X X X X X X =============== EKO AIR: Insolvency Resolution Process Case Summary --------------------------------------------------- Debtor: Eko Air Filtration India Private Limited Shop No. 01, Ground Floor, Regency Park CHS Ltd., Plot-02, Sector 05, Kharghar Navi Mumbai, Raigarh 410210 India Insolvency Commencement Date: April 19, 2023 Estimated date of closure of insolvency resolution process: October 16, 2023 Court: National Company Law Tribunal, Mumbai Bench Insolvency Professional: Satya Narayan Baheti Flat No.1804, Zinnia, Bldg No. 17, Vasant Oasis, Makwana Road, Marol, Andheri East, Mumbai-400059 Email: sn.baheti@rediffmail.com Email: cirp.ekoafipl@gmail.com Last date for submission of claims: May 9, 2023 ********* 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 ***