Rationale

 As per media articles, Enforcement Directorate (ED) officials conducted search operations at various locations of Chowgule & company Private Limited (CCPL), Chowgule Steamship Limited (CSL) and PP Mahatme & Company and seven residential premises of Chowgule family members and few other current and past employees of the company. The search operations as indicated to ICRA are pertaining to a police complaint filed by the company against an ex-director of CCPL. The police complaint was related to a transactions that were undertaken by CCPL in the period of 2009 to 2014 for advancing funds to offshore subsidiaries. These loans and advances were later written-off as the investments did not yield the desired results. Currently, there has been no impact of the search operations on the business operations or financial flexibility of the group. However, ICRA will continue to monitor the developments on this front going forward and will take an appropriate rating action depending on incremental developments if any.