/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/200102.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, January 2, 2020, Vol. 23, No. 2 Headlines A U S T R A L I A BOUNTY MINING: Receivers Shut Down Cook Colliery BTNM TRADING: Second Creditors' Meeting Set for Jan. 8 SWC MANAGEMENT: 400 Jobs Axed Following Company's Collapse C H I N A ANBANG INSURANCE: Plans to Sell 55.5% Stake in Rural Bank HNA GROUP: Offloads Another Big Asset as Liquidity Crisis Persist I N D I A ASHOKA MANUFACTURING: CRISIL Cuts Rating on INR5.85cr Loan to D BALASON TEA: CRISIL Assigns 'B' Rating to INR7.75cr Loan BASE ELECTRICAL: Insolvency Resolution Process Case Summary BHASKAR CONTRACTORS: Ind-Ra Lowers LongTerm Issuer Rating to 'D' BHATTACHARYYA BOTTLING: Insolvency Resolution Process Case Summary BULLAND BUILDTECH: Insolvency Resolution Process Case Summary DEWAN HOUSING: Creditors Submit Claims Worth Nearly INR87,000cr DHARAM PAUL: CRISIL Moves B+ on INR14.7 Loans to Not Cooperating EGWOOD BOARDS: Ind-Ra Migrates B+ Issuer Rating to Non-Cooperating ELYSIUM PHARMACEUTICALS: Ind-Ra Raises LT Issuer Rating to 'B+' EXCEL OVERSEAS: CRISIL Lowers Rating on INR33.99cr Loan to 'D' INDIA: Airlines Likely to Post Huge FY20 Losses Amid Low Fares KGS DEVELOPERS: Insolvency Resolution Process Case Summary LAKSHMI MINI: CRISIL Moves B+ on INR4.5cr Credit to NonCooperating LAXMI LUMBER: CRISIL Moves B on INR3.5cr Credit to Not Cooperating LUCKNOW INFRASTRUCTURES: CRISIL Rates INR2cr Cash Loan 'B+' MACONNS INFRA: CRISIL Assigns B+ Rating to INR200cr LT Loan OMKAR ENGINEERS: CRISIL Reaffirms B+ Rating on INR7.5cr Loan P RAMESH: CRISIL Moves B+ on INR3.4 Loans to Not Cooperating PEARL MINERAL: CRISIL Moves B+ on INR10cr Loans to Not Cooperating PRASANA TEX: Ind-Ra Lowers LongTerm Issuer Rating to 'D' R. K. RICE TECH: CRISIL Moves B+ on INR8cr Loan to Not Cooperating RAJAPUR MINERALS: Ind-Ra Migrates B+ LT Rating to Non-Cooperating RAM TRADERS: CRISIL Cuts Rating on INR8cr Cash Loan to 'D' RENGAS AVITTA: CRISIL Moves B+ on INR6cr Loans to Not Cooperating RUTUJA INDUSTRIES: CRISIL Moves B+ Debt Rating to Non-Cooperating SAI SHIPPING: CRISIL Lowers Rating on INR16.3cr Term Loan to D SHREE NILKANTH: CRISIL Moves B+ on INR15cr Debts to Not Cooperating SHRI AMBIKA: CRISIL Migrates 'B+' Ratings to Not Cooperating SIDDHIVINAYAK POLYTEX: CRISIL Moves B Ratings to Not Cooperating SRI LAKSHMI VENKATESWARA: CRISIL Moves B+ Ratings to NonCooperating STA-CO NUTRA: CRISIL Moves D on INR7cr Loans to Not Cooperating SUNSHINE INFRABUILD: Insolvency Resolution Process Case Summary TAIPACK LIMITED: Insolvency Resolution Process Case Summary TAMPRA ESTATE: CRISIL Assigns 'B' Rating to INR10cr Overdraft THRIMATHY CONTRACTING: CRISIL Moves B+ Rating to Not Cooperating TRIDENT FLEXIBLE: Insolvency Resolution Process Case Summary TRIVANDRUM SPECIALISTS: Insolvency Resolution Process Case Summary UMACHI FOODS: Insolvency Resolution Process Case Summary VATSIN INFRASTRUCTURE: Insolvency Resolution Process Case Summary VIKRAM NUVOTECH: Ind-Ra Affirms & Withdraws 'D' LT Issuer Rating VISHNUSHIVA INFRASTRUCTURES: CRISIL Cuts INR7cr Loan Rating to D VISHWAS TUBES: Ind-Ra Lowers LongTerm Issuer Rating to 'D' VISIONINDIA SOFTWARE: CRISIL Cuts Rating on INR22.77cr Loan to B VIVAANA DESIGNERS: Ind-Ra Lowers LongTerm Issuer Rating to 'D' ZECO AIRCON: CRISIL Withdraws B+ Rating on INR45cr Cash Loan S I N G A P O R E HYFLUX LTD: NEA Expects TuasOne to be Operational in January 2021 - - - - - ================= A U S T R A L I A ================= BOUNTY MINING: Receivers Shut Down Cook Colliery ------------------------------------------------ ABC News reports that the miners union said hundreds of workers have been left unemployed a week before Christmas as central Queensland firm Bounty Mining Limited enters into voluntary administration. Bounty took over the Cook Colliery near Blackwater in the Bowen Basin in 2017, following the collapse of the colliery's previous owner, Caledon Coal, ABC recalls. In an announcement to the Australian Stock Exchange (ASX), Bounty Mining said it had entered into voluntary administration with KordaMentha after a period of depressed coking coal prices and production shortfalls, ABC discloses. "It is the intention of the receivers to place the Cook Colliery's operations into care and maintenance whilst they undertake a review and develop a plan to sell the business and/or restructure the group," ABC quotes receivers PricewaterhouseCoopers as saying in a statement. The drop in production came after a mining roof fall in October that buried the company's primary excavator, the report states. Last month, the company told the ASX the collapse caused a direct fall in production of 23,000 tonnes and an indirect loss of 150,000 tonnes, ABC discloses. At the time, 21 workers were laid off. The miners union is estimating up to 250 workers and contractors would be impacted by the latest shutdown, ABC discloses. The CFMEU said most of the remaining workforce was employed on a casual basis, meaning they have few entitlements, the report adds. BTNM TRADING: Second Creditors' Meeting Set for Jan. 8 ------------------------------------------------------ A second meeting of creditors in the proceedings of BTNM Trading Pty Ltd has been set for Jan. 8, 2020, at 10:00 a.m. at the offices of Jirsch Sutherland, Level 9, at 120 Edward Street, in Brisbane, Queensland. 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 Jan. 7, 2020, at 4:00 p.m. Marcus Watters of Jirsch Sutherland was appointed as administrator of BTNM Trading on Nov. 29, 2019. SWC MANAGEMENT: 400 Jobs Axed Following Company's Collapse ---------------------------------------------------------- Elias Clure at ABC News reports that four hundred people have lost their jobs after a group of building supply businesses in Melbourne's west went bust. The SWC Management group, which operates out of a massive newly redeveloped warehouse in Melbourne's western suburbs, announced it was going into voluntary administration on Dec. 17, 2019, with advisory firm KordaMentha taking over operations, ABC News relates. The group manages a number of subsidiaries that supply and install stone, tile and glass. Its most prolific business, Baron Forge, has installed marble and granite projects at Melbourne's Crown Casino, Monument Park, The Royal Children's Hospital and several other well-known CBD high-rise buildings. According to ABC, most of SWC's employees were stonemasons and project managers and more than half were based at its headquarters in the Melbourne suburb of Brooklyn, but it also employed workers in Sydney, Brisbane, Perth and Adelaide. The company turned over AUD120 million last financial year, but ABC understands that no cash was left in the business and it would have been unable to continue paying its staff. It is understood the projects the company took on board had small financial margins which forced the company to operate while withstanding significant losses, the report notes. The incoming administrators added that the business was also suffering from dwindling sales. According to ABC, KordaMentha's Craig Shepard said SWC had tried to improve sales and revenue but its plans were not working. "The [Christmas] timing's awful, it was a real shock," the report quotes Mr. Shepard as saying. "Staff didn't expect it, management's been pursuing a turnaround plan, they've been making some really good inroads and achievements dealing with some legacy contracts which were unprofitable, but really it's just run out of steam." ABC relates that Mr. Shepard said the lack of cash meant administrators were left with no choice but to terminate all the staff immediately. He added if nobody could be found to take over the business soon, the closure could have flow-on effects to the business's customers, including major construction projects in Melbourne's CBD, the report relays. "Obviously this week is the week that the building industry finishes up on Friday but when they come back in the new year, hopefully we've got a solution for them," Mr. Shepard, as cited by ABC, said. ========= C H I N A ========= ANBANG INSURANCE: Plans to Sell 55.5% Stake in Rural Bank --------------------------------------------------------- Wu Hongyuran and Timmy Shen at Caixin Global report that Anbang Insurance Group Co. Ltd. has put its 55.5% stake in a rural bank up for sale, as China's insurance regulator continues to sell off the fallen financial giant's assets. Anbang plans to sell its 5.55 billion shares, including those held by related companies, in Chengdu Rural Commercial Bank Co. Ltd. for nearly CNY26.2 billion (US$3.8 billion), Caixin discloses citing a post published Dec. 30, 2019, on the Beijing Financial Assets Exchange (BFAE). The post showed that Anbang is selling 3.5 billion of its own shares. The remaining 2.05 billion shares, put up for sale by Anbang's regulatory restructuring team and owned by 10 other shareholders, are actually controlled by Anbang, sources told Caixin. Caixin notes that the sale is part of efforts by China's insurance regulator to dismantle Anbang. It has been systematically selling off the company's assets since taking over the indebted, scandal-ridden conglomerate in February 2018. According to Caixin, the regulator has vowed to dispose of unnecessary financial licenses held by Anbang that don't do much to augment its core insurance business. In May 2018, Anbang's founder Wu Xiaohui was sentenced to 18 years in prison for fundraising fraud and embezzlement. Chengdu Xingcheng Investment Group Co. Ltd., an investment vehicle controlled by the government of the southwestern city of Chengdu, is expected to lead the acquisition of Anbang's 35% stake in Chengdu Rural Commercial Bank, Caixin previously reported. Last year, Anbang tried to sell its 35% stake in the bank for CNY16.8 billion, but failed to reach a deal. At the end of September, Chengdu Rural Commercial Bank had CNY550 billion in total assets and CNY43.3 billion in net assets, Caixin discloses citing the BFAE post, which cited the bank's audited financial statements. About Anbang Insurance Anbang Insurance Group Co., Ltd., through its subsidiaries Anbang Property Insurance Inc., Anbang Life Insurance Inc., Hexie Health Insurance Co., Ltd, and Anbang Asset Management Co., Ltd., offers property insurance, life insurance, health insurance, asset management, insurance sales agency, and insurance brokerage services. The company provides car insurance, accident insurance, cargo transportation insurance, credit insurance, life-long insurance, and medical insurance services. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 26, 2018, The Strait Times related the Chinese government had seized control of Anbang Insurance, the troubled Chinese company that owns the Waldorf Astoria hotel in New York and other marquee properties around the world, and charged its former chairman with economic crimes. The Strait Times noted that the move is Beijing's biggest effort yet to rein in a new kind of Chinese company, in this case, one that spent billions of dollars around the world over the past three years buying up hotels and other high-profile properties. The rise of these companies illustrates China's growing economic might, but Chinese officials have grown increasingly concerned that they were piling up debt to make frivolous purchases. In a statement posted on its website on Feb. 23, the China Insurance Regulatory Commission said the government was taking over to ensure the "normal and stable operation" of the company. "Illegal operations at Anbang may have seriously endangered the company's solvency, prompting the government to take control," the statement read. The Strait Times noted the move also caps the downfall of Anbang leader Wu Xiaohui. Mr. Wu had married a granddaughter of Mr. Deng Xiaoping, China's paramount leader in the 1980s and a towering figure in Chinese politics, and was widely considered politically connected. Mr. Wu Xiaohui was later sentenced to 18 years in prison for fraud and embezzlement, according to Reuters. HNA GROUP: Offloads Another Big Asset as Liquidity Crisis Persist ----------------------------------------------------------------- Caixin Global reports that cash-strapped HNA Group Co. Ltd. has decided to sell off another multi-billion-yuan asset as the conglomerate continues to grapple with a long-running liquidity crisis. Caixin relates that Shanghai-listed HNA Infrastructure Investment Group Co. Ltd., an HNA unit focused on infrastructure investment and operation, plans to sell its entire stake in Hainan Golden Bay Investment and Development Co. Ltd. for CNY10.1 billion ($1.43 billion), the former announced on Dec. 27, 2019, in a statement. The buyer is a state-run real estate developer in South China's Hainan province, Hainan Development Holdings Real Estate Group Co. Ltd, the report says. Golden Bay runs a land reclamation project in Hainan's capital of Haikou, Caixin discloses. Construction was completed in 2018, but it has yet to begin operating. Golden Bay had invested CNY3.75 billion of its own capital in the project, but the fact that it hasn't made any money has left the company teetering on the verge of collapse, adds Caixin. About HNA Group China-based HNA Group Co. Ltd. offers airlines services. The Company provides domestic and international aviation transportation, air travel, aviation maintenance, and aviation logistics services. HNA Group also operates holding, capital, tourism, logistics, and other business. As reported in the Troubled Company Reporter-Asia Pacific on Sept. 17, 2018, the Financial Times related that HNA Group defaulted on a CNY300 million (US$44 million) loan raised through Hunan Trust. According to the FT, the company is already under strict supervision by a group of bank creditors, led by China Development Bank, following a liquidity crunch in the final quarter of 2017. The default came despite an estimated $18 billion in asset sales by HNA in 2018 that have done little to address its ability to meet its domestic debts, the FT noted. ========= I N D I A ========= ASHOKA MANUFACTURING: CRISIL Cuts Rating on INR5.85cr Loan to D --------------------------------------------------------------- CRISIL has downgraded its ratings on the bank facilities of Ashoka Manufacturing Limited (AML) to 'CRISIL D/CRISIL D/Issuer Not Cooperating' from 'CRISIL BB-/Stable/CRISIL A4+ Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 3.5 CRISIL D (ISSUER NOT COOPERATING; Downgraded from CRISIL A4+ ISSUER NOT COOPERATING') Cash Credit 5.85 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL BB-/Stable ISSUER NOT COOPERATING') Letter of Credit .90 CRISIL D (ISSUER NOT COOPERATING; Downgraded from CRISIL A4+ ISSUER NOT COOPERATING') Fund-Based Bank Limits 0.66 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL BB-/Stable ISSUER NOT COOPERATING') Term Loan 1.24 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL BB-/Stable ISSUER NOT COOPERATING') CRISIL has been consistently following up with AML for obtaining information through letters and emails dated March 7, 2019 and March 12, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Investors, lenders, and all other market participants should exercise due caution while using ratings assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as they are arrived at without any management interaction and are based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL has not received any information on either the financial performance or strategic intent of Ashoka Manufacturing Limited, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on the company is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with 'CRISIL B' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation coupled with adverse banker feedback, CRISIL has downgraded its ratings on the bank facilities of AML to 'CRISIL D/CRISIL D/Issuer Not Cooperating' from 'CRISIL BB-/Stable/CRISIL A4+ Issuer Not Cooperating'. The downgrade reflects delay in servicing debt obligation, due to stretched liquidity. However, the company benefits from the extensive experience of its promoters. Incorporated in 1997, AML manufactures and supplies spare parts used for defence arms and ammunition. The company is promoted by Kolkata-based Mr Anil Patodia and family. BALASON TEA: CRISIL Assigns 'B' Rating to INR7.75cr Loan -------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the bank facilities of Balason Tea Company Pvt Ltd (BTCPL; part of the Rheabari group). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term Bank Loan Facility .25 CRISIL B/Stable (Assigned) Bank Guarantee .50 CRISIL A4 (Assigned) Fund-Based Facilities 7.75 CRISIL B/Stable (Assigned) The ratings reflect the Rheabari group's average debt protection metrics, exposure to risks related to seasonal production, and susceptibility to climatic conditions. The weaknesses are partially offset by the extensive experience of the promoters in the tea industry, and their continued funding support. Analytical Approach For arriving at the ratings, CRISIL has combined the business and financial risk profiles of Rheabari Tea Co Pvt Ltd (RTCPL), BTCPL, Coochbehar Agro Tea Estates Pvt Ltd (CATEPL), Jalpaiguri Duars Tea Co Ltd (JDTCL), Chandan Tea Industries Pvt Ltd (CTIPL), and Atal Tea Co (1943) Ltd (ATCL). This is because the companies, together referred to as the Rheabari group, have operational and financial links. CRISIL has treated unsecured loans from the promoters of INR55.23 crore as 75% equity and 25% debt, as the loans are expected to remain in the business at least for the next five years. Key Rating Drivers & Detailed Description Weakness: * Exposure to risks related to seasonal production, and susceptibility to climatic conditions: Tea is a seasonal product and its yield depends on weather conditions. Tea production and quality could be significantly affected by any variation in rain, humidity, and temperature, leading to volatile realisations for the group. Moreover, plantation operations have fixed cost, with labour accounting for 50-60% of total expenses. Labour laws and unions make reducing manpower difficult, increasing the rigidity in cost. This means that lower production or reduction in realisations will lead to a drop in profitability. * Average debt protection metrics: Debt protection metrics are constrained by high interest (of 11%) on the unsecured loan. However, the interest amount is ploughed back into the business and does not cause any significant cash outflow. Interest coverage was 0.53 time in fiscal 2019 and is expected at a similar level over the medium term. Strengths: * Promoters' extensive experience in the tea industry: The promoters' experience of more than five decades, and deep understanding of local market dynamics should continue to support the business risk profile. Capital expenditure (capex) to acquire plantations, and for replantation and refurbishing old machinery has helped the group establish a strong market position and maintain growth in revenue. * Funding support from the promoters: The promoters and related parties have extended unsecured loans to the group to facilitate capex and support working capital management, and are likely to continue providing need-based financial assistance. Liquidity Stretched The group had a cash loss of around INR4 crore in fiscal 2019 against debt obligation of around INR4 lakh. The group is likely to have a cash loss over the medium term on account of high interest outgo. Bank limits were utilised 95% on an average over the five months through November 2019. Financial assistance is expected from the promoters whenever necessary, as in the past. The current ratio remained weak at 0.7 time as on March 31, 2019. Outlook: Stable CRISIL believes the Rheabari group will continue to benefit from its promoters' extensive experience. Rating Sensitivity factors Upward factors * Increase in revenue to more than INR200 crore along with increase in operating margin, resulting in a cash profit * Reduction in interest on unsecured loans or increase in operating profit, resulting in interest coverage of more than 1.5 times Downward factor * Fall in revenue to less than INR100 crore, and decline in operating margin, resulting in deepening cash loss * Increase in interest, weakening interest coverage About the Group The Rheabari group manufactures CTC (crush, tear, curl) black tea, and is managed by the Agarwal and Bansal families based in Kolkata Incorporated in 1985, RTCPL has one tea garden named Rheabari Tea Estate in Jalpaiguri, West Bengal, and six CTC lines with annual installed capacity to produce 12 lakh kilogram (kg) of black tea. Tea is marketed under the Shahzadi brand. Incorporated in 2012, CATEPL has one tea garden and a factory in Coochbehar, West Bengal. The company has seven CTC lines with annual installed capacity to produce 21 lakh kg of black tea. The company markets tea under the Teen Bigha, Moynaguri, and Holong brands. Incorporated in 2001, BTCPL no plantation facility and depends entirely on purchased green leaves for production of black tea. Its factory is in Darjeeling, West Bengal, and has annual installed capacity of 20 lakh kg of black tea. BTCL sells its own produce in the domestic market and exports tea procured from tea auction centres. The company markets tea under the London Royal, Kolkata Royal, and Balason Tea brands. JDTCL, incorporated in 1920, has one tea garden named Thanjhora Tea Estate and one factory in Darjeeling. It has six CTC lines with annual installed capacity to produce 15 lakh kg of black tea, and sells under the Thanjhora Tea Estate and Salbari brands. Incorporated in 1942, ATCL has one tea garden named Atal Tea Estate and a factory in Darjeeling. The company has six CTC lines with annual installed capacity to produce 18 lakh kg of black tea. The company markets tea under the Atal Tea and Satbhaiya brands. Incorporated in 1989, CTIPL has one tea garden named Chandan Tea Estate and a factory in Uttar Dinajpur, West Bengal. It also has six CTC lines with annual installed capacity of 20 lakh kg of black tea. The company markets tea under the Jiaguri and Chandan Tea brands. BASE ELECTRICAL: Insolvency Resolution Process Case Summary ----------------------------------------------------------- Debtor: Base Electrical and Electronic Solutions Private Limited 40B, SMS Layout-North Ondipudur, Coimbatore 641016 TN Insolvency Commencement Date: December 11, 2019 Court: National Company Law Tribunal, Puducherry Bench Estimated date of closure of insolvency resolution process: June 8, 2020 (180 days from commencement) Insolvency professional: Vengetrao Interim Resolution Professional: Vengetrao 107, Petit Canal Street Puducherry 605001 E-mail: kvengetrao@gmail.com Last date for submission of claims: January 3, 2020 BHASKAR CONTRACTORS: Ind-Ra Lowers LongTerm Issuer Rating to 'D' ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Sri Bhaskar Contractors Company's Long-Term Issuer Rating to 'IND D (ISSUER NOT COOPERATING)' from 'IND B+ (ISSUER NOT COOPERATING)'. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Thus, the rating is based on the best available information. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR20 mil. Fund-based working capital limit (Long-term) downgraded with IND D (ISSUER NOT COOPERATING) rating; -- INR105 mil. Non-fund-based working capital limit (Short-term) downgraded with IND D (ISSUER NOT COOPERATING) rating. KEY RATING DRIVERS The downgrade reflects the company's delays in debt servicing for more than 90 days, the details of which are not available. RATING SENSITIVITIES Positive: Timely debt servicing for at least three consecutive months would be positive for the ratings. COMPANY PROFILE Sri Bhaskar Contractors Company was established in 1996. The firm is a civil contractor and executes work orders in Andhra Pradesh and Telangana. BHATTACHARYYA BOTTLING: Insolvency Resolution Process Case Summary ------------------------------------------------------------------ Debtor: Bhattacharyya Bottling Plant Private Limited Wellesley House 7 Red Cross Place, 3rd Floor Kolkata 700001, WB Insolvency Commencement Date: December 20, 2019 Court: National Company Law Tribunal, Kolkata Bench Estimated date of closure of insolvency resolution process: June 16, 2020 Insolvency professional: Beena Jajodia Interim Resolution Professional: Beena Jajodia 862, Jessore Road Block A, Ground Floor Kolkata 700055, W.B. E-mail: bjajodia73@gmail.com - and - 14, S.P. Mukherjee Road, 3rd Floor Kolkata 700025, W.B. E-mail: ipbjajodia@gmail.com Last date for submission of claims: January 3, 2020 BULLAND BUILDTECH: Insolvency Resolution Process Case Summary ------------------------------------------------------------- Debtor: Bulland Buildtech Private Limited D-138, Flat No. 4 First Floor Krishna Park Khanpur New Delhi South Delhi DL 110080 IN Insolvency Commencement Date: November 29, 2019 Court: National Company Law Tribunal, New Delhi Bench Estimated date of closure of insolvency resolution process: May 27, 2020 Insolvency professional: Mr. Kanti Mohan Rustagi Interim Resolution Professional: Mr. Kanti Mohan Rustagi E-7, Kailash Colony New Delhi 110048 E-mail: kanti.rustagi@ patanjaliassociates.com - and - Resurgent Resolution Professional LLP 905, 9th Floor, Tower C Unitech Business Zone The Close South, Sector-50 Gurugram, Haryana 122018 E-mail: cirpbullandbuildtech@gmail.com Last date for submission of claims: December 27, 2019 DEWAN HOUSING: Creditors Submit Claims Worth Nearly INR87,000cr --------------------------------------------------------------- BloombergQuint reports that financial creditors to Dewan Housing Finance Corporation Ltd. have submitted claims worth INR86,892 crore against the mortgage lender taken to insolvency courts by the central bank. R Subramaniah Kumar, the administrator appointed by the Reserve Bank of India, has so far admitted claims worth nearly INR80,980 crore before the insolvency proceedings begin, according to information available on the DHFL website. Mutual funds and other bondholders have claimed INR45,550 crore. The administrator admitted most of these claims, BloombergQuint says. According to BloombergQuint, State Bank of India, including its Singapore-based unit, has claimed dues worth INR10,083 crore, the highest among individual lenders. Of this, the administrator has admitted claims worth INR7,131 crore. Bank of India has submitted the second-biggest claims worth over INR4,000 crore. Operational creditors to the company have claimed more than INR60 crore so far, while workers and employees have claimed over INR2 crore, BloombergQuint relates. Other creditors have claimed over INR950 crore. These include four real estate companies—HM Tower Pvt. Ltd., MAN Realty Ltd., Merino SheltersPvt Ltd. and Neelkamal Realtors Tower Pvt. Ltd. Neelkamal Realtors has been asked to analyse its claims better and resubmit with necessary proof. The RBI, last month, initiated insolvency proceedings against DHFL after the government amended the Insolvency & Bankruptcy Code to include financial services companies. The housing finance company and its insolvency proceedings are the test case for the evolving bankruptcy framework for such companies. Lenders to DHFL have been trying to find a resolution since June when they signed the inter-creditor agreement. It was delayed because mutual funds and other bond holders couldn't participate. Creditors also suggested a plan to carve out the company's assets into three parts and sell them to investors, with banks holding equity stake in the interim. That was rejected by the RBI, says BloombergQuint. As reported in the Troubled Company Reporter-Asia Pacific on Dec. 5, 2019, Deccan Herald said the Mumbai bench of the National Company Law Tribunal (NCLT) on Dec. 2 admitted an RBI petition seeking bankruptcy proceedings to resolve the mortgage player Dewan Housing Finance (DHFL). The move came in after the Reserve Bank on Nov. 29 made an application for bankruptcy proceedings to resolve the credit and liquidity crisis at the company, which became the first financial sector player being sent for bankruptcy. Dewan Housing Finance Corporation Limited (DHFL) operates as a housing finance company in India. The company's deposit products include fixed deposit products for individuals, and trusts and institutions; and corporate, recurring, and Wealth2Health deposits products. It also offers home loans, which include home improvement loans, home construction loans, home extension loans, plot loans/land loans, plot and construction loans, and balance transfer of home loans, as well as home loans for the self-employed; small and medium enterprise loans, including property term, plant and machinery, medical equipment, and business loans; mortgage loans, such as loans against property, loan for purchase of commercial premises, and loan through lease rental discounting; and NRI home loans. DHARAM PAUL: CRISIL Moves B+ on INR14.7 Loans to Not Cooperating ---------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Dharam Paul Rice Mills (DPRM) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 12 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Rupee Term Loan 2.7 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with DPRM for obtaining information through letters and emails dated November 26, 2019 and December 2, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of DPRM, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on DPRM is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of DPRM to 'CRISIL B+/Stable Issuer not cooperating'. DPRM was established in 1999, by Mr Ashok Kumar, Mr Mahendra Pal and Mr Sandeep Kumar. The firm undertakes rice milling and rice shelling at its plant located in Budhlada, Punjab. The plant as an installed capacity of 4 tons per hour. The firm processes basmati rice and by-products such as bran, which are sold to both merchant exporters and domestic traders. EGWOOD BOARDS: Ind-Ra Migrates B+ Issuer Rating to Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has migrated Egwood Boards & Panels Private Limited's (EBPPL) Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR142.7 mil. Fund-based working capital limits migrated to non-cooperating category with IND B+ (ISSUER NOT COOPERATING) / IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on December 26, 2018. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 1994, EBPPL manufactures industrial plywood. Initially established as a small scale furniture manufacturing unit, the company later began focusing only on the manufacturing of industrial plywood. EBPPL sells products under its own brand Egwood. ELYSIUM PHARMACEUTICALS: Ind-Ra Raises LT Issuer Rating to 'B+' --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has upgraded Elysium Pharmaceuticals Limited's (EPL) Long-Term Issuer Rating to 'IND B+' from 'IND D'. The Outlook is Stable. The instrument-wise rating actions are: -- INR249.87 mil. (reduced from INR267.36 mil.) Term loans due on June 2024 upgraded with IND B+/Stable rating; -- INR150 mil. Fund-based limits upgraded with IND B+/Stable rating; and -- INR32 mil. (reduced from INR62 mil.) Non-fund-based limits upgraded with IND A4 rating. KEY RATING DRIVERS The upgrade reflects EPL's timely debt servicing for the three months ended November 2019. The upgrade also reflects a 29.7% yoy increase in EPL's revenue to INR728.63 million in FY19 on the higher execution of work orders during the period. Furthermore, the company's EBITDA improved to INR162.75 million in FY19 (FY18: INR104.30 million) due to a decline in the raw material cost during the period. However, the ratings remain constrained by EPL's modest credit metrics even as its net financial leverage (net debt/operating EBITD) improved to 3.2x in FY19 (FY18: 4.9x) on an increase in the absolute EBITDA levels. However, EBITDA interest coverage (operating EBITDA/gross interest coverage) deteriorated to 3.9x in FY19 (FY18: 4.8x) on higher interest expenses due to an increase in the total debt. Liquidity Indicator - Stretched: EPL's liquidity was tight as indicated by the multiple instances of over-utilization of its fund-based limit during the 12 months ended November 2019. However, the over-utilization instances were regularized within 1-53 days. The company's cash flow from operations increased to INR97.94 million in FY19 (FY18: INR77.55 million) on account of a rise in the absolute EBITDA levels along with positive changes in working capital requirement. Moreover, the net working capital cycle days improved to 78 days in FY19 (FY18: 111 days) due to a decline in the receivable and inventory days. The cash and cash equivalents stood at INR1.26 million at FYE19 (FYE18: INR2.56 million). The ratings continue to be supported by the promoter's significant experience of over two decades in generic drug manufacturing and in exporting to the US market. RATING SENSITIVITIES Negative: A decline in the revenue and the overall credit metrics, all on a sustained basis, will be negative for the ratings. Positive: An increase in the revenue along with an improvement in overall credit metrics and liquidity profile, all on a sustained basis, would lead to a positive rating action. COMPANY PROFILE Incorporated in 1995 by Yashwant Patel, EPL is a formulation company based in Dabhasa, 19km from Vadodara, Gujarat. The company commenced commercial operations in 1997, manufacturing sterile formulations such as liquid and dry parenteral and non-sterile formulations such as tablets, capsules, liquid orals, ointment and dry syrups under third-party and contract manufacturing agreements for established pharmaceutical firms. It produces own drugs under the ethical segment. EXCEL OVERSEAS: CRISIL Lowers Rating on INR33.99cr Loan to 'D' -------------------------------------------------------------- CRISIL has downgraded its rating from 'CRISIL BB+/Stable' to 'CRISIL D' on the long term bank facilities of Excel Overseas Private Limited (EOPL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Packing Credit 33.99 CRISIL D (Downgraded from 'CRISIL BB+/Stable') Post Shipment 74.01 CRISIL D (Downgraded from Credit 'CRISIL BB+/Stable') The downgrade reflects instance of delay in realization of trade bill financed under the post shipment credit facility beyond 30 days. This was on account of delayed realization from some of its overseas customers. The ratings continue to reflect stretched liquidity scenario on back elongated receivables period, significant exposure to few customers, large working capital requirement with high bank limit utilisation and susceptibility to volatile diamond prices amidst intense competition leading to reduction in scale of operations and operating profit margins. These rating weaknesses are partially offset by the extensive experience of promoters in the diamond industry. Analytical Approach The unsecured loans of INR6.7 crores from the promoters which is non-interest bearing and is expected to remain in business has been treated as neither debt nor equity. Key Rating Drivers & Detailed Description Weaknesses: * Delays in Servicing of Debt: There have been instances of delay in realization of trade bill financed under the post shipment credit facility beyond 30 days. This was on account of delayed realization from some of its overseas customers. * Large working capital requirement: Operations have been working capital intensive, with gross current assets, inventory, and receivables at 178 days, around 103 days, and 72 days, respectively, as on March 31, 2019. The working capital requirements is expected remain large despite reduced scale of operations. * Significant exposure to few customers: EOPL is exposed to customer concentration risk as its top five customers accounted for nearly 80% of its revenues for fiscal 2018. Further as on March 31, 2018, top 2 debtors contributes around 61% of the total debtors. * Susceptibility to volatile diamond prices amidst intense competition resulting in moderate operating profit margins: The diamond industry is highly fragmented because of low entry barriers on account of relatively low capital and technology requirements, attracting numerous un-organized players across the country. EOPL is also exposed to risks related to volatility in diamond prices. The company maintains inventory of rough and polished diamonds, of which rough diamonds are usually procured from the international market. This makes the company vulnerable to fluctuations in rough and polished diamond prices and with relatively limited value addition operating profitability has been moderate at around 2% to 5% over the last three fiscals through 2019. The operating margin is expected to remain under pressure over the medium. Strengths: * Established market presence backed by experience of promoters: Supported by extensive experience of the promoters, EOPL has established its position in domestic and international cut and polished diamond markets for over four decades. The promoters have maintained longstanding relations with customers while successfully navigating through several business cycles over the years. The company primarily an export house and operates majorly in Hong Kong. Liquidity Poor The liquidity of EOPL is poor on account of elongation in its receivable cycle resulting in delay in realization of trade bills. Rating Sensitivity factors Upward factors: * Track record of more than one quarter without any delays in debt servicing * Improvement in financial risk profile and liquidity. EOPL was set up in 1988 as a proprietary concern in 1988 by Mr. Ramesh Shah, and was reconstituted as a private limited company in 2007. The company trades in rough and polished diamonds and is also engaged in cutting and polishing of diamonds. INDIA: Airlines Likely to Post Huge FY20 Losses Amid Low Fares -------------------------------------------------------------- Livemint.com reports that Indian carriers are likely to end this fiscal year through March with huge losses, hampered by their ability to raise fares even during the traditionally strong October-December quarter because of cut-throat competition, said three airline officials, requesting anonymity. Livemint.com relates that the collapse of Jet Airways (India) Ltd in April because of a severe cash crunch and a large debt pile has failed to lift industry fares as other airlines jumped to add capacity. The over-eagerness resulted in other airlines adding capacity lost due to Jet's grounding, forcing carriers to offer incentives to lure customers, the report says. "We are all held captive to the actions of the stupidest competitors, whoever they may be on a given day. They set the price and other airlines have no option but to follow," said a senior airline executive on condition of anonymity, Livemint.com relays. "This has been causing a lot of financial distress in the sector." "All it takes is one discount, and the entire pricing discipline collapses like a pack of cards," the executive said. "And of late, the pricing discipline closer to the date of departure (0-7 day window and 0-15 day window) has vanished." Livemint.com relates that the country's sluggish economic growth has added to demand pressures, forcing airlines to offer lower fares, said the second airline official mentioned above. "This is not a feasible model. Casualties in terms of closure of airlines are bound to happen," the official said. High oil prices that have been hovering in a band of $66-67 a barrel have also added to cost pressures, given jet fuel makes up about a third of a carrier's expenses, the report says. "If the oil prices hit over $70 a barrel, I will not be surprised if one or two airlines find it an uphill struggle to continue their operations," the second official, as cited by Livemint.com, added. Livemint.com says brent crude prices have risen by more than 30% in the last one year, while the Indian rupee has slipped against the dollar, which has further fuelled cost pressure given India is dependent on fuel imports. Taxes on aviation fuel in India continue to be one of the highest in the world. "Most Indian airlines are comfortable when oil price stays at about $60-65 a barrel, and rupee at 60-65 per dollar. When the rupee or oil prices breach this mark, airlines find it difficult to control costs," Livemint.com quotes the third airline official as saying. Indian airlines are expected to lose over $600 million (INR4,273 crore) in FY 2019-20 as compared to a previous estimate of full-year profit of $500 million to $700 million (INR3,561 crore to INR4,985 crore), aviation consultancy Capa India said in a recent report, according to Livemint.com. "The cash position of the industry remains under pressure, with corresponding risks. Most carriers other than IndiGo continue to be precariously placed, with cash balances available—in some cases—to cover only a few days or weeks of expenses," it added. The situation is grim and airlines with financially strong promoters, who have the ability to infuse cash from time to time, will survive, while weaker airlines may shut shop in the near future, said the second official, adds Livemint.com. KGS DEVELOPERS: Insolvency Resolution Process Case Summary ---------------------------------------------------------- Debtor: KGS Developers Limited No. 63, Kamaraj Avenue First Street, Adyar Chennai 600020 Tamil Nadu Insolvency Commencement Date: December 18, 2019 Court: National Company Law Tribunal, Chennai Bench Estimated date of closure of insolvency resolution process: June 15, 2020 (180 days from commencement) Insolvency professional: Mr. Anil Kumar Khicha Interim Resolution Professional: Mr. Anil Kumar Khicha 6 FF, 1st Floor, Golden Enclave 184, Poonamallee High Road Kilpauk, Chennai 600010 E-mail: knpchennai@gmail.com kgs@aaainsolvency.com Classes of creditors: A. Unsecured Financial Creditors B. Home Buyers Insolvency Professionals Representative of Creditors in a class: Class A. Unsecured Financial Creditors: Mr. K Sivalingam Mr. S Palaniappan Mr. Radhakrishnan Dharmarajan Class B. Home Buyers: Mr. V Sadhasivam Mr. M Raguram Mr. B Ramana Kumar Last date for submission of claims: January 2, 2020 LAKSHMI MINI: CRISIL Moves B+ on INR4.5cr Credit to NonCooperating ------------------------------------------------------------------ CRISIL has migrated the rating on bank facilities of Sri Lakshmi Mini Rice Mill (SLMRM) to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4.5 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Letter Of Guarantee .71 CRISIL A4 (ISSUER NOT COOPERATING; Rating Migrated) Long Term Loan 3.75 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with SLMRM for obtaining information through letters and emails dated November 26, 2019 and December 2, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SLMRM, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on SLMRM is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of SLMRM to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. SLMRM was set up in 2000 at Bankura (West Bengal) as a partnership between Mr Nanigopal Dalui, Mr Swapan Chandra Koner, Mr Rajkumar Dalui, Mr Subir Kumar Dalui, and Ms Padmarani Koner. The firm mills non-basmati parboiled rice from paddy. Mr Rajkumar Dalui manages the daily operations. LAXMI LUMBER: CRISIL Moves B on INR3.5cr Credit to Not Cooperating ------------------------------------------------------------------ CRISIL has migrated the rating on bank facilities of Laxmi Lumber Industries Private Limited (LLIPL) to 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 3.5 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Migrated) Inland/Import 6.25 CRISIL A4 (ISSUER NOT Letter of Credit COOPERATING; Rating Migrated) Proposed Long Term 2.25 CRISIL B/Stable (ISSUER NOT Bank Loan Facility COOPERATING; Rating Migrated) CRISIL has been consistently following up with LLIPL for obtaining information through letters and emails dated November 26, 2019 and December 2, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of LLIPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on LLIPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of LLIPL to 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Established as a private-limited company in 2008 by Mr Ganga Ram Patel and Mr Dhanna Ram Patel, LLIPL took over the operations of Laxmi Timber Industries, a partnership firm set up in 1976. The company processes (cuts and saws) and trades in timber with capacity of around 600 cubic feet per day. The firm processes teak wood, saal wood, oak wood, ash wood and pinewood. LLIPL has three processing facilities-cum-warehouses, two in Delhi and one in Ghandidham, Gujrat. Daily operations are managed by Mr Kishore Patel. LUCKNOW INFRASTRUCTURES: CRISIL Rates INR2cr Cash Loan 'B+' ----------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of Lucknow Infrastructures (LI). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Cash 2 CRISIL B+/Stable (Assigned) Credit Limit Proposed Bank 3.2 CRISIL A4 (Assigned) Guarantee Bank Guarantee 2 CRISIL A4 (Assigned) Cash Credit 2.8 CRISIL B+/Stable (Assigned) The ratings reflect LI's susceptibility to tender-based operations, modest scale of business and large working capital requirements. These weaknesses are partially offset by the extensive industry experience of the partners and firm's moderate debt protection metrics. Key Rating Drivers & Detailed Description Weaknesses: * Susceptibility to tender-based operations: Revenue and profitability entirely depend on the ability to win tenders. Also, entities in this segment face intense competition, thus requiring to bid aggressively to get contracts, which restricts the operating margin. Also, given the cyclicality inherent in the construction industry, the ability to maintain profitability margin through operating efficiency becomes critical. * Modest scale of business: Business is constrained by the modest scale of operations with revenue of INR13.97 crore in the intensely competitive civil construction industry. LI's small scale of operations will continue limit its operating flexibility. * Large working capital requirements: The gross current assets days stood at 231 as on March 31, 2019 driven by inventory of 91 days and security advances for procuring tenders with government departments. The working capital requirements are expected to remain large over the medium term due to the very nature of the industry. Strengths: * Extensive experience of the partners: The partners' experience of over 8 years in the civil construction industry, their understanding of the dynamics of the market, and healthy relationships with suppliers and customers should continue to support the business. * Healthy debt protection metrics: Debt protection measures have been at a comfortable level despite leverage due to moderate profitability. The interest coverage and net cash accrual to total debt ratios were 3.15 times and 0.19 time, respectively, for fiscal 2019. Debt protection measures are expected to remain at similar level over the medium term. Liquidity Stretched The bank limits have remained fully utilized due to large working capital requirements, however supported by modest accruals against minimal repayment obligations. Timely enhancement in working capital limits will remain critical over the medium term. Outlook: Stable CRISIL believes LI will continue to benefit from the extensive experience of its partners, and healthy relationships with clients. Rating sensitivity factors: Upward Factors: * Sustained improvement in scale of operations by 20% and stable operating margin, leading to higher cash accruals * Improvement in working capital cycle Downward Factors: * Drop in revenue or margins leading to lower-than-expected accruals of less than INR40 lakh * Stretch in working capital cycle LI was established in 2010, it is located in Lucknow, Uttar Pradesh. LI is owned and managed by Mr Santosh Dwivedi and Mr Arvind Dwivedi. LI is engaged in civil construction works, such as construction of roads and bridges, buildings, irrigation works and electrification works. MACONNS INFRA: CRISIL Assigns B+ Rating to INR200cr LT Loan ----------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term bank facility of Maconns Infra Private Limited (MIPL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term Bank Loan Facility 200 CRISIL B+/Stable (Assigned) The rating reflects the company's exposure to project-related risks as operations are yet to commence, and to risk pertaining to customer concentration. These weaknesses are partially offset by the promoter's extensive experience in the real estate business and healthy industrial relationship. Key Rating Drivers & Detailed Description Weaknesses: * Exposure to project-related risks: Since construction is yet to commence, business risk profile will remain exposed to timely commencement and completion of the project. The company also faces funding risk as term loan has not been sanctioned. Arrangement of funds on time will remain a key monitorable. * Susceptibility to customer concentration risk: The Company is currently constructing a commercial and retail space which will be majorly leased to one party, hence exposing the company's revenue profile to customer concentration risk. However, this risk is mitigated by promoter's association of over 14 years with the lessee, which has a track record of timely payment. Strength: * Promoter's extensive industry experience: The promoter (Mr RK Manocha) has been in the real estate development industry since the past three decades, and enjoys a strong repute, especially in Noida. Over these years, he has successfully executed various projects and forged healthy industrial relationship. Liquidity Stretched Liquidity shall remain constrained on account of funding risk as term loan is yet to be sanctioned. However, it will be partly aided by equity and unsecured loans from the promoter and sizeable customer advances. Outlook: Stable CRISIL believes MIPL will continue to benefit from its promoter's extensive experience. Rating Sensitivity factors Upward Factors: * Timely completion of project * Maintenance of debt service coverage ratio (DSCR) of over 1.5 times Downward Factors: * Delayed funding leading to delay in project completion * DSCR declining below 1 time Incorporated in 2007 and promoted by Mr RK Manocha, MIPL is engaged in real estate development. The company is currently constructing a commercial and retail space, the first phase of which is expected to commence in fiscal 2021. OMKAR ENGINEERS: CRISIL Reaffirms B+ Rating on INR7.5cr Loan ------------------------------------------------------------ CRISIL has reaffirmed its 'CRISIL B+/Stable/CRISIL A4' ratings on the bank facilities of Omkar Engineers and Contractors (Omkar). CRISIL has also withdrawn its rating on the proposed long-term bank facility of INR12.5 crore at the firm's request. This is in line with CRISIL's policy on withdrawal of bank loan ratings. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 7.5 CRISIL A4 (Reaffirmed) Cash Credit 7.5 CRISIL B+/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 2.5 CRISIL B+/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 12.5 CRISIL B+/Stable Withdrawn The ratings continue to reflect the firm's modest scale of operations in the intensely competitive construction industry, and the high customer and geographical concentration in revenue. The weaknesses are partially offset by the extensive experience of the promoters in civil construction. Key Rating Drivers & Detailed Description Weakness: * High customer and geographical concentration in revenue: The high revenue concentration exposes Omkar's business and financial risk profiles to risks related to changes in investment plans or policies by government agencies in Maharashtra. * Modest scale and susceptibility to intense competition: Revenue of INR25.32 crore in fiscal 2019 reflects the firm's subdued scale, which will continue to limit negotiating power with suppliers and customers and render the firm vulnerable to business downturns. Strength: * Extensive experience of the promoters: The promoters have experience of over two decades in the civil construction industry, which will support growth over the medium term. Liquidity Stretched Cash accrual, expected at INR0.85-1.5 crore per fiscal, should sufficiently cover yearly debt obligation of INR0.04 crore over the medium term. Bank limit utilisation averaged 46% over the 12 months through October 2019. Liquidity is further supported by timely, need-based unsecured loans provided by the promoters. Outlook: Stable CRISIL believes Omkar will continue to benefit from the extensive experience of its promoters in the civil construction industry. Rating Sensitivity factors Upward factors * Continuous increase of above 15% in revenue and sustenance of profitability * Improvement in working capital cycle Downward factors * Significant capital withdrawal leading to deterioration in financial risk profile with gearing rising above 4 times * Stretch in working capital cycle Omkar, a proprietorship firm, was set up in 1990 by Mr Dhanpal Shah. The firm was reconstituted as a partnership firm in 2013, with Mr Narendra Shah joining as partner. Omkar undertakes government contracts and is mainly involved in the construction of roads, bridges, drainage systems, and platforms for municipal corporations in Maharashtra. P RAMESH: CRISIL Moves B+ on INR3.4 Loans to Not Cooperating ------------------------------------------------------------ CRISIL has migrated the rating on bank facilities of P Ramesh And Co (PR) to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 10 CRISIL A4 (ISSUER NOT COOPERATING; Rating Migrated) Cash Credit 3 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Standby Line of Credit 0.4 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with PR for obtaining information through letters and emails dated November 26, 2019 and December 2, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of PR, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on PR is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of PR to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Initially, PR was set up as a proprietorship firm in 1989 by Mr P Ramesh. Later changed its constitution to P Ramesh And Co. The firm is engaged in civil construction works Based on Hyderabad and it is registered as a special class contractor. PEARL MINERAL: CRISIL Moves B+ on INR10cr Loans to Not Cooperating ------------------------------------------------------------------ CRISIL has migrated the rating on bank facilities of Pearl Mineral And Mines Private Limited (PMMPL) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 8.5 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Proposed Long Term 1.5 CRISIL B+/Stable (ISSUER NOT Bank Loan Facility COOPERATING; Rating Migrated) CRISIL has been consistently following up with PMMPL for obtaining information through letters and emails dated November 26, 2019 and December 2, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of PMMPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on PMMPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of PMMPL to 'CRISIL B+/Stable Issuer not cooperating'. Incorporated in 2010 and based out of Prakasam district, Andhra Pradesh, PMMPL is engaged in mining and export of granites, particularly black galaxy granites. The company is promoted by Mr. Ch. Venkata Nagaraja and his family. PRASANA TEX: Ind-Ra Lowers LongTerm Issuer Rating to 'D' -------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Sri Prasana Tex's Long-Term Issuer Rating to 'IND D (ISSUER NOT COOPERATING)' from 'IND B (ISSUER NOT COOPERATING)'. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Thus, the rating is based on the best available information. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- INR30 mil. Fund-based working capital limit (Long-term) downgraded with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information KEY RATING DRIVERS The downgrade reflects Sri Prasana Tex's delays in servicing of fund-based limits for more than 180 days. RATING SENSITIVITIES Positive: Timely debt servicing for three consecutive months could result in a rating upgrade. COMPANY PROFILE Sri Prasana Tex, founded by JR Bhubaneshwari and K Vasuki in 2011, is engaged in the trading of yarns and fabrics. R. K. RICE TECH: CRISIL Moves B+ on INR8cr Loan to Not Cooperating ------------------------------------------------------------------ CRISIL has migrated the rating on bank facilities of R. K. Rice Tech Private Limited (RKRTPL) to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 1 CRISIL A4 (ISSUER NOT COOPERATING; Rating Migrated) Cash Credit 8 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with RKRTPL for obtaining information through letters and emails dated November 26, 2019 and December 2, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of RKRTPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on RKRTPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of RKRTPL to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Incorporated in 2008, Raipur-Chhattisgarh based RKRTPL, promoted by Mr Lalit Agarwal and Mrs Reena Agarwal, processes and sells parboiled non-basmati rice. RAJAPUR MINERALS: Ind-Ra Migrates B+ LT Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Rajapur Minerals' (Rajapur) Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR21 mil. Term loan due on January 2020 migrated to non- cooperating category with IND B+ (ISSUER NOT COOPERATING) rating; and -- INR29 mil. Fund-based facilities migrated to non-cooperating category with IND B+ (ISSUER NOT COOPERATING) / IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on 27 December 2018. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. KEY RATING DRIVERS Incorporated in 2002, Rajapur is promoted and managed by Satish Rajapur. The company is engaged in the extracting, crushing, screening and transportation of iron ore. COMPANY PROFILE Incorporated in 2002, Rajapur is promoted and managed by Satish Rajapur. The company is engaged in the extracting, crushing, screening and transportation of iron ore. RAM TRADERS: CRISIL Cuts Rating on INR8cr Cash Loan to 'D' ---------------------------------------------------------- CRISIL has downgraded its rating to the long-term bank facilities of Sri Ram Traders - Namakkal (SRT) to 'CRISIL D' from 'CRISIL B+/Stable'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 8 CRISIL D (Downgraded from 'CRISIL B+/Stable') The downgrade reflects delays by the company in servicing its debt obligations on account of liquidity issues. The rating reflects the modest scale of operations and exposure to intense competition. These weaknesses are partially offset by extensive experience of the proprietor in the poultry feed industry and the firm's moderate financial risk profile. Key Rating Drivers & Detailed Description Weakness * Below average financial risk profile: Capital structure is moderate, marked by gearing of 1.8 times and networth of INR4.85 crore as on March 31, 2019. Debt protection metrics are average because of modest operating margins and modest accruals. Strengths * Extensive experience of the proprietor: The proprietor has been in the poultry feed industry for over 25 years, and has established strong relationships with various stakeholders, which has helped SRT and its sister concerns scale up operations. Liquidity Poor Liquidity is weak on account of high bank limit utilization and stretch in working capital management. Bank limits were highly utilized at above 98% till November 2019. Rating sensitivity factor Upward factor * Timely servicing of debt obligation for at least 3 months. * Improvement in overall working capital management with Gross Current Asset days of less than 80. Based in Namakkal (Tamil Nadu), SRT trades in poultry feed such as maize, soya, rice, and jowar. All its supplies are to sister concern Aishwarya Feeds, which manufactures poultry feed. RENGAS AVITTA: CRISIL Moves B+ on INR6cr Loans to Not Cooperating ----------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Sri Rengas Avitta Garments (SRA) to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 3.75 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Foreign Bill Discounting 2.50 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Letter of Credit .25 CRISIL A4 (ISSUER NOT COOPERATING; Rating Migrated) Proposed Long Term .50 CRISIL B+/Stable (ISSUER NOT Bank Loan Facility COOPERATING; Rating Migrated) CRISIL has been consistently following up with SRA for obtaining information through letters and emails dated September 30, 2019, November 26, 2019 and December 2, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SRA, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on SRA is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of SRA to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. SRA was established in 2015 by Mrs Preeti and Mrs Ritisha Nivedha as a partnership firm. It manufactures RMG for men, women, and children at its facility in Tiruppur, Tamil Nadu. RUTUJA INDUSTRIES: CRISIL Moves B+ Debt Rating to Non-Cooperating ----------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Rutuja Industries (RI) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 16 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with RI for obtaining information through letters and emails dated November 26, 2019 and December 2, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of RI, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on RI is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of RI to 'CRISIL B+/Stable Issuer not cooperating'. Set up as a partnership firm in 2003 by Ms Sangita Sharad Sarda, Mr Narsing Somani, and Mr Sachin Musale, SI gins cotton and extracts and refines cotton seed oil at its unit in Beed, Maharashtra. SAI SHIPPING: CRISIL Lowers Rating on INR16.3cr Term Loan to D -------------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Sai Shipping Company Private Limited (SSCPL; part of Sai Shipping group) to 'CRISIL D' from 'CRISIL B/Stable'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Overdraft 1.5 CRISIL D (Downgraded from 'CRISIL B/Stable') Proposed Long Term 11.2 CRISIL D (Downgraded from Bank Loan Facility 'CRISIL B/Stable') Term Loan 16.3 CRISIL D (Downgraded from 'CRISIL B/Stable') The downgrade reflects the pressure on liquidity as reflected in the delay in the term loan repayments. The ratings continue to reflect SSCPL's subdued operating performance, susceptibility to cyclicality in the shipping industry and below-average debt protection metrics. These weaknesses are partially offset by the extensive experience of the promoters. Analytical Approach For arriving at the ratings, CRISIL has combined the business and financial risk profiles of SSCPL, Sunrise Maritime Pte Ltd (Sunrise), Sai Shipping Co (Gujarat) Pvt Ltd, and Sai Maritime & Management Pvt Ltd, collectively referred to as the Sai group. All the entities have common promoters and management, and fungible cash flows. Please refer table 1, which captures the list of entities considered and their analytical treatment of consolidation. Key Rating Drivers & Detailed Description Weaknesses: * Subdued operating performance: The group has reported negative operating margin of 1.3% in fiscal 2019 owing to pricing pressure because of intense competition. Margin is expected to gradually improve but remain low below 2%, over the medium term. * Susceptibility to cyclicality in the shipping industry: The sea cargo industry is cyclical, and characterized by volatile freight prices and a highly fragmented structure. Revenue and profitability will remain exposed to such volatility over the medium term. * Below-average debt protection metrics: Interest coverage is low at 0.52 time for fiscal 2019, however, net cash accrual to total debt ratio was 0.04 time owing to cash profit of INR0.59 crore. The metrics are expected to remain muted over the medium term. Strength: * Extensive experience of the promoters: More than three-decade long experience in the shipping industry has helped the group to build a strong reputation at major ports in the country and abroad. Liquidity Poor Liquidity is poor as reflected in recent instances of delay in the term loan repayments. Non availability of adequate funds in a timely manner owing to large working capital requirements has resulted in poor liquidity. Incorporated in 1977, SSCPL undertakes chartering and freight forwarding, and stevedoring of bulk cargo and is expected to acquire a vessel for operations. The other entities of the Sai group are also in the same line of business and the group has diversified into the ship-owning business through Sunrise Maritime Pte Ltd. SHREE NILKANTH: CRISIL Moves B+ on INR15cr Debts to Not Cooperating ------------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Shree Nilkanth Polytex (SNP) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Long Term Loan 10 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with SNP for obtaining information through letters and emails dated September 24, 2019 and October 14, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SNP, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on SNP is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of SNP to 'CRISIL B+/Stable Issuer not cooperating'. SNP, incorporated in 2018 at Morbi, will be manufacturing plastic woven bags and fabrics; operations are set to commence from December 2018. Mr Hiteshbhai Ghanshyambhai Adroja and Mr Damjibhai Becharbhai Kakasaniya are the promoters. SHRI AMBIKA: CRISIL Migrates 'B+' Ratings to Not Cooperating ------------------------------------------------------------ CRISIL has migrated the rating on bank facilities of Shri Ambika Agro Private Limited (SAPL) to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 7 CRISIL A4 (ISSUER NOT COOPERATING; Rating Migrated) Cash Credit 0.08 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Long Term Loan 1.28 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Proposed Long Term 3.64 CRISIL B+/Stable (ISSUER NOT Bank Loan Facility COOPERATING; Rating Migrated) CRISIL has been consistently following up with SAPL for obtaining information through letters and emails dated November 26, 2019 and December 2, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SAPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on SAPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of SAPL to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Incorporated in 2007, Raipur, Chhattisgarh-based SAPL is engaged in rice milling. Mr Pradeep Agrawal manages the operations. SIDDHIVINAYAK POLYTEX: CRISIL Moves B Ratings to Not Cooperating ---------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Siddhivinayak Polytex Private Limited (SPPL) to 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7.6 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Migrated) Term Loan 6.5 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with SPPL for obtaining information through letters and emails dated September 30, 2019, November 26, 2019 and December 2, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SPPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on SPPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of SPPL to 'CRISIL B/Stable Issuer not cooperating'. Incorporated in 2012 and promoted by Mr Sunil Agarwal, SPPL manufactures PP fabric and bags, and aluminium extrusion products. SRI LAKSHMI VENKATESWARA: CRISIL Moves B+ Ratings to NonCooperating ------------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Sri Lakshmi Venkateswara Rice Industry (SLVRI) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6.25 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Proposed Long Term 1.75 CRISIL B+/Stable (ISSUER NOT Bank Loan Facility COOPERATING; Rating Migrated) CRISIL has been consistently following up with SLVRI for obtaining information through letters and emails dated November 26, 2019 and December 2, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SLVRI, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on SLVRI is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of SLVRI to 'CRISIL B+/Stable Issuer not cooperating'. Incorporated in 2000 as a partnership firm, SLVRI mills and processes paddy into rice, rice bran, broken rice, and husk. It has an installed paddy milling capacity of 8 tonnes per hour. It is located at Nellore (Andhra Pradesh). The promoter, Mr. T Venkateswarlu Naidu, has close to two decades of experience in the rice industry. STA-CO NUTRA: CRISIL Moves D on INR7cr Loans to Not Cooperating --------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Sta-co Nutra Products Private Limited (SNPPL) to 'CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 1.5 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) Proposed Long Term 0.1 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING; Rating Migrated) Term Loan 5.4 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with SNPPL for obtaining information through letters and emails dated November 26, 2019 and December 2, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SNPPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on SNPPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of SNPPL to 'CRISIL D Issuer not cooperating'. Established in 2013 by Mr Shivaji Sankpal and Ms Rohini Satkar, SNPPL is setting up a unit in Ranjangaon, Pune, to manufacture allopathic and ayurvedic lozenges and oncology active pharmaceutical ingredients. SUNSHINE INFRABUILD: Insolvency Resolution Process Case Summary --------------------------------------------------------------- Debtor: Sunshine Infrabuild Corporation Limited Royal Palace Complex First Floor G-55, Vikas Marg, Laxmi Nagar New Delhi 110092 Insolvency Commencement Date: December 17, 2019 Court: National Company Law Tribunal, New Delhi Bench Estimated date of closure of insolvency resolution process: June 14, 2020 (180 days from commencement) Insolvency professional: Pawan Kumar Goyal Interim Resolution Professional: Pawan Kumar Goyal 304, D.R. Chambers 12/56, D.B. Gupta Road Karol Bagh, New Delhi 110005 E-mail: ca.pawangoyal@gmail.com cirplsicl@gmail.com Classes of creditors: Debenture Holders Insolvency Professionals Representative of Creditors in a class: Mr. Amit Sharma E-mail: amit2002_shr@rediffmail.com Mr. Dharm Vir Gupta E-mail: dvgupt@gmail.com Ms. Maya Gupta E-mail: fcsmayagupta@gmail.com Last date for submission of claims: January 3, 2020 TAIPACK LIMITED: Insolvency Resolution Process Case Summary ----------------------------------------------------------- Debtor: Taipack Limited 40, Hanuman Lane Flat No. 4, Connaught Place New Delhi, Central Delhi DL 110001 IN Insolvency Commencement Date: December 17, 2019 Court: National Company Law Tribunal, Gurugram Bench Estimated date of closure of insolvency resolution process: June 13, 2020 Insolvency professional: Brij Nandan Kalra Interim Resolution Professional: Brij Nandan Kalra B-001, Bestech Park View Ananda Sector-81, Gurugram 122004 Haryana E-mail: bnkalra1954@gmail.com bnktaipackltd@gmail.com Last date for submission of claims: January 3, 2020 TAMPRA ESTATE: CRISIL Assigns 'B' Rating to INR10cr Overdraft ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term bank loan facilities of Tampra Estate Private Limited (TEPL) Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Overdraft 10 CRISIL B/Stable (Assigned) Proposed Long Term Bank Loan Facility 2.5 CRISIL B/Stable (Assigned) The rating reflects the company's exposure to risks inherent in the real estate industry, and to geographical concentration and demand risks. These weaknesses are partially offset by promoter's extensive experience and funding support. Key Rating Drivers & Detailed Description Weaknesses: * Exposure to project related risk: Since construction of four units out of six units is yet to be completed, business risk profile is exposed project related risks. Demand risk is high on account of no sale of constructed unit till date. Since proceeds of one unit would be utilized in construction of other units, any delay in sale of unit may adversely impact completion of other units. * Exposure to geographic concentration: Majority of the units being constructed by the company are in Ludhiana, Punjab. Any slowdown in the real estate market there will affect demand. Strengths: * Promoter's extensive experience and funding support: The promoters' experience of over a decade in land development should help complete construction of units on time. Furthermore, need-based and timely financial support from the promoters is expected over the medium term. Unsecured loans from them stood at INR1 crore as on November 30, 2019. Liquidity Stretched Liquidity will be constrained by modest cash accrual expected over the medium term. However, the company has no debt obligation. Bank limit of INR10 crore was utilised moderately at 58.6% on an average over the 12 months through September 2019. Liquidity is also supported by unsecured loans from the promoters and their family members. The loans are expected to remain in the business over the medium term. Outlook: Stable CRISIL believes TEPL will continue to benefit from the extensive experience of its promoters. Rating Sensitivity factors Upward factors: * Timely construction of units * Sale of 50% of the constructed units in fiscal 2020 Downward factors: * Delayed construction of units * No unit sold in fiscal 2020 Incorporated in July 2016, TEPL builds bungalows and houses for high networth individuals in Model Town, Ludhiana. THRIMATHY CONTRACTING: CRISIL Moves B+ Rating to Not Cooperating ---------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Thrimathy Contracting Company (TCC) to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 10 CRISIL A4 (ISSUER NOT COOPERATING; Rating Migrated) Cash Credit 13 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with TCC for obtaining information through letters and emails dated November 26, 2019 and December 2, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of TCC, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on TCC is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of TCC to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Incorporated in 2001 as a proprietorship concern by late Mr V P Thrimathy, Malapuram (Kerala)-based TCC is a civil contractor that primarily constructs roads and bridges for Public Works Department, Kerala. Operations are managed by proprietor's son, Mr V P Harshad. TRIDENT FLEXIBLE: Insolvency Resolution Process Case Summary ------------------------------------------------------------ Debtor: Trident Flexible Private Limited Registered office: A-138, 1st Floor Vikas Puri New Delhi, DL 110018 Site office/Unit: Plot No. 72/Khasra No. 61 Matiala Village, Uttam Nagar New Delhi 110059 Insolvency Commencement Date: December 13, 2019 Court: National Company Law Tribunal, New Delhi Bench Estimated date of closure of insolvency resolution process: June 16, 2020 (180 days from commencement) Insolvency professional: Satish Joshi Interim Resolution Professional: Satish Joshi F-207, Aditya Trade Tower Plot No. 4, Local Shopping Complex Pocket O & P, Dilshad Garden Delhi 110095 E-mail: recourse2018@gmail.com Last date for submission of claims: January 2, 2020 TRIVANDRUM SPECIALISTS: Insolvency Resolution Process Case Summary ------------------------------------------------------------------ Debtor: The Trivandrum Specialists Hospital Private Limited P O Box No. 1052 Pattom, Trivandrum Kerala 695004 India Insolvency Commencement Date: December 19, 2019 Court: National Company Law Tribunal, Cochin Bench Estimated date of closure of insolvency resolution process: June 17, 2020 Insolvency professional: Mr. Renahan Vamakesan Interim Resolution Professional: Mr. Renahan Vamakesan Villa 23, Skyline Rosemount Homes Kunjan Bava Road Vyttila PO, Ernakuam Kerala 682019 E-mail: renahanv@gmail.com Last date for submission of claims: January 3, 2020 UMACHI FOODS: Insolvency Resolution Process Case Summary -------------------------------------------------------- Debtor: Umachi Foods and Commodities Pvt. Ltd. Khasra No. 13/21, Ground Floor Main G.T. Karnal Road Khammpur, New Delhi 110036 Insolvency Commencement Date: August 19, 2019 Court: National Company Law Tribunal, New Delhi Bench Estimated date of closure of insolvency resolution process: February 15, 2020 Insolvency professional: Suman Saini Interim Resolution Professional: Suman Saini 903, Belur CGHS Plot No. 1, Sector 18A Dwarka, New Delhi 110078 E-mail: suman62saini@gmail.com Last date for submission of claims: December 27, 2019 VATSIN INFRASTRUCTURE: Insolvency Resolution Process Case Summary ----------------------------------------------------------------- Debtor: Vatsin Infrastructure Limited Plot No. 460, Sector 30 Faridabad, Haryana 121003 Insolvency Commencement Date: December 13, 2019 Court: National Company Law Tribunal, Chandigarh Bench Estimated date of closure of insolvency resolution process: June 10, 2020 Insolvency professional: Vinod Kumar Mahajan Interim Resolution Professional: Vinod Kumar Mahajan Flat No. 309, RCS Society Sector 48-A, Chandigarh 160047 E-mail: vkmahajan586@gmail.com ip.vatsin@gmail.com Mobile: 7042277309 Classes of creditors: Investors for Assured Return/Home Buyer Insolvency Professionals Representative of Creditors in a class: Ravinder Goel Ashok Kumar Gupta Satish Kumar Goyal Last date for submission of claims: December 27, 2019 VIKRAM NUVOTECH: Ind-Ra Affirms & Withdraws 'D' LT Issuer Rating ---------------------------------------------------------------- Ind-Ra-Chennai-xx December 2019: India Ratings and Research (Ind-Ra) has affirmed Vikram Nuvotech India Private Limited's (VNI, erstwhile Pioneer Syntex Private Limited) Long-Term Issuer Rating at 'IND D (ISSUER NOT COOPERATING)' and simultaneously withdrawn it. The instrument-wise rating actions are: -- INR180.00 mil. Fund-based working capital limits (Long- term/Short-term)* affirmed and withdrawn; -- INR915.56 mil. Term loan (Long-term)* due on March 2025 affirmed and withdrawn; -- INR42.50 mil. Non-fund-based working capital limits (Short- term)* affirmed and withdrawn; -- INR105.00 mil. Proposed term loan limits (Long-term)* affirmed and withdrawn; and -- INR150.00 mil. Proposed fund-based working capital limits (Long-term/Short-term)* affirmed and withdrawn. *Affirmed at IND D (ISSUER NOT COOPERATING)' before being withdrawn KEY RATING DRIVERS The affirmation reflects VNI's ongoing delays in making term loan repayments, as on November 7. The details are not available. Ind-Ra is no longer required to maintain the ratings as the agency has received no-objection certificates from the rated facilities' lenders. This is consistent with the Securities and Exchange Board of India's circular dated March 31, 2017, for credit rating agencies. COMPANY PROFILE Incorporated in 1987, VNI is engaged in dying and printing all kinds of fabrics on job-work basis and manufacturing of polyethylene films. VISHNUSHIVA INFRASTRUCTURES: CRISIL Cuts INR7cr Loan Rating to D ---------------------------------------------------------------- CRISIL has downgraded the ratings on Vishnushiva Infrastructures (VI) to 'CRISIL D/CRISIL D Issuer Not Cooperating' from 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') Letter Of 0.75 CRISIL D (ISSUER NOT Guarantee COOPERATING; Downgraded from 'CRISIL A4 ISSUER NOT COOPERATING') Proposed Long Term 2.25 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING; Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') CRISIL has been consistently following up with VI for obtaining information through letters and emails dated June 29, 2019 and December 9, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company'. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of VI, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on VI is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower' Due to overdrawal in cash credit account continuously for more than 30 days, CRISIL has downgraded the ratings to 'CRISIL D/CRISIL D Issuer Not Cooperating' from 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating'. VI, incorporated in March 2008, is a partnership firm, promoted by Mr. B S Rana and family members and engaged in mining of coal. VISHWAS TUBES: Ind-Ra Lowers LongTerm Issuer Rating to 'D' ---------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Vishwas Tubes India Limited's Long-Term Issuer Rating to 'IND D (ISSUER NOT COOPERATING)' from 'IND B (ISSUER NOT COOPERATING)'. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Thus, the rating is based on the best available information. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The instrument-wise rating action is: -- INR220 mil. Fund-based limits (Long-term/Short-term) downgraded with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information KEY RATING DRIVERS The downgrade reflects Vishwas Tubes India's delays in debt servicing, the details of which are not available. RATING SENSITIVITIES Positive: Timely debt servicing for at least three consecutive months would be positive for the ratings. COMPANY PROFILE Vishwas Tubes India was incorporated in September 1997. It manufactures galvanized steel tubes, galvanized steel pipes, welded black pipes/tubes, and mild steel tubes and pipes. VISIONINDIA SOFTWARE: CRISIL Cuts Rating on INR22.77cr Loan to B ---------------------------------------------------------------- CRISIL has revised its ratings on the bank facilities of Visionindia Software Exports Limited (VSEL) to 'CRISIL D/CRISIL D' from 'CRISIL BB/Stable/CRISIL A4+'. Also, the rating has been simultaneously upgraded to 'CRISIL B/Stable/CRISIL A4'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 3.23 CRISIL A4 (Revised from 'CRISIL A4+' to 'CRISIL D' and simultaneously upgraded to 'CRISIL A4') Cash Credit 4.00 CRISIL B/Stable (Revised from 'CRISIL BB/Stable' to 'CRISIL D' and simultaneously upgraded to 'CRISIL B/Stable') Proposed Long Term 22.77 CRISIL B/Stable (Revised Bank Loan Facility from 'CRISIL BB/Stable' to 'CRISIL D' and simultaneously upgraded to 'CRISIL B/Stable') The rating revision to 'CRISIL D/CRISIL D' reflects instances of overdrawals in the fund-based limit and devolvement of the non-fund-based limit for more than 30 days prior to August 2019. The simultaneous upgrade reflects no instances of overdrawals or irregularity in any of the bank facilities for more than 30 days from August 2019 to November 2019. The rating is constrained by VSEL's stretched working capital cycle, modest scale of operations, and weak liquidity. These weaknesses are partially offset by the extensive experience of the promoters in the information technology (IT) industry. Analytical Approach Unsecured loans of INR22.05 lakh provided by the promoters as on March 31, 2019, have been treated as debt, as they are need-based and may be withdrawn from the business if not needed. Key Rating Drivers & Detailed Description Weaknesses: * Stretched working capital cycle: Operations are working capital-intensive, as reflected in gross current assets (GCAs) of 169-274 days over the three years through March 31, 2019, driven by large receivables. As a result, liquidity remains under pressure. * Modest scale of operations: Although revenue recorded a healthy compounded annual growth rate of 30% in the past three fiscals, the scale of operations remains small. VSEL's modest scale will continue to restrict its operating flexibility. Strength: * Extensive experience of promoters: Benefits from the decade-long presence of the promoters in the IT industry and their strong relationships with key customers should continue to support the business risk profile. Liquidity Poor VSEL's bank limit was overdrawn for more than 30 days in June-August 2019. Bank limit remains fully utilised post August 2019, with instances of overdrawals; however, this has been regularised within 30 days. Cash accrual, expected at INR5.03 crore per fiscal, is tightly matched with yearly debt obligation of INR4.5 crore in fiscal 2020. Outlook: Stable CRISIL believes VSEL will continue to benefit from the promoters' extensive experience. Rating Sensitivity Factor: Upward Factors: * Improvement in liquidity profile backed by 20% growth in revenue and profitability * Improvement in working capital cycle with timely receipt of receivables Downward Factors: * Consistent utilisation of bank lines above 95% weakening liquidity profile * Weakening of business risk profile due to revenue de-growth or steep fall in operating profitability Incorporated in 2000, Pune-based VSEL provides software solutions for e-governance projects and provides banking solutions for financial inclusion. Mr Sunil Umrani is the promoter. VIVAANA DESIGNERS: Ind-Ra Lowers LongTerm Issuer Rating to 'D' -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Vivaana Designers Private Limited's (VDPL) Long-Term Issuer Rating to 'IND D (ISSUER NOT COOPERATING)' from 'IND B- (ISSUER NOT COOPERATING)'. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Thus, the rating is based on the best available information. Therefore, investors and other users are advised to take appropriate caution while using the rating. The instrument-wise rating action is: -- INR84 mil. Fund-based working capital limits (Long term/Short- term) downgraded with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information KEY RATING DRIVERS The downgrade reflects Vivaana Designers' delays in debt serving, the details of which are not available. RATING SENSITIVITIES Positive: Timely debt servicing for at least three consecutive months could result in an upgrade. COMPANY PROFILE Established in 2010, VDPL manufactures textile products such as embroidery works on sarees and suits. ZECO AIRCON: CRISIL Withdraws B+ Rating on INR45cr Cash Loan ------------------------------------------------------------ CRISIL has withdrawn its rating on the bank facilities of Zeco Aircon Limited (Zeco) on the request of the company and after receiving no objection certificate from the bank. The rating action is in-line with CRISIL's policy on withdrawal of its rating on bank loan facilities. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 45 CRISIL B+/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB+/Stable ISSUER NOT COOPERATING'; Rating Withdrawn) Letter of credit 15 CRISIL A4 (ISSUER NOT & Bank Guarantee COOPERATING; Revised from 'CRISIL A4+ ISSUER NOT COOPERATING'; Rating Withdrawn) Long Term Loan 7 CRISIL B+/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB+/Stable ISSUER NOT COOPERATING'; Rating Withdrawn) Proposed Long Term 2 CRISIL B+/Stable (ISSUER NOT Bank Loan Facility COOPERATING; Revised from 'CRISIL BB+/Stable ISSUER NOT COOPERATING'; Rating Withdrawn) CRISIL has been consistently following up with Zeco for obtaining information through letters and emails dated September 30, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Zeco. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Zeco is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. Based on the last available information, CRISIL has revised the ratings on the bank facilities of Zeco to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Zeco was incorporated in 1995 as a private company and was later reconstituted as a closely held public limited company in 2010. The company manufactures air-handling units, hollow ducts, coils, pre-insulated pipes, ventilation/exhaust units, and other such products. It has a presence in the value chain of the HVAC (heating, ventilation and air conditioning) industry where it supplies products to contractors and consultants undertaking projects for manufacturers of commercial and industrial applications. The manufacturing units are in Bahadurgarh, Bengaluru, and Thane. ================= S I N G A P O R E ================= HYFLUX LTD: NEA Expects TuasOne to be Operational in January 2021 ----------------------------------------------------------------- The Strait Times reports that Hyflux Ltd's TuasOne waste-to-energy facility is expected to be operational in January 2021, said the National Environment Agency (NEA). According to the report, the agency said it has been monitoring discussions among the stakeholders of the TuasOne project and "is supportive of the stakeholders' actions taken to complete the project expeditiously". The Strait Times relates that Hyflux said in a bourse filing on Dec. 30 that the new agreement to ensure continued funding for the TuasOne waste-to-energy project will have an "overall material adverse impact" on Hyflux's financial performance. The water treatment company announced the transfer of the remainder of the TuasOne engineering, procurement and construction (EPC) contract to Mitsubishi Heavy Industries Asia Pacific through a deed of novation on Dec. 26, the report recalls. It remains the majority shareholder of the TuasOne project with a 75 per cent stake, while Mitsubishi Heavy Industries holds the other 25 per cent. The Strait Times notes that the TuasOne facility is at least 96 per cent completed and was slated for completion in May this year, but funds dried up for Hyflux. The report says the firm teamed up with Mitsubishi Heavy Industries to sign an agreement with NEA in October 2015 to build Singapore's sixth and largest waste-to-energy plant. TuasOne was intended to provide waste-to-energy services to NEA over a 25-year period from 2019 to 2044 and was designed to add 3,600 tonnes of incineration capacity per day to Singapore's waste disposal system. In a filing on Dec. 30, 2019, Hyflux said that while the termination of the previous settlement agreement with Mitsubishi Heavy Industries would discharge certain liabilities of the group, the novation of the EPC contract and the division of the remaining payments are expected to result in the group giving up "certain rights to a portion of the proceeds from the construction revenue earned". However, the new agreement will "create a more stable condition for the present debt restructuring exercise" for Hyflux, it added, the Strait Times relays. The home-grown firm has found itself saddled by a mountain of debt after it expanded into the energy business through water and power plant Tuaspring, which has since been taken over by national water agency PUB, adds The Strait Times. About Hyflux Singapore-based Hyflux Ltd -- https://www.hyflux.com/ -- provides various solutions in water and energy areas worldwide. The company operates through two segments, Municipal and Industrial. The Municipal segment supplies a range of infrastructure solutions, including water, power, and waste-to-energy to municipalities and governments. The Industrial segment supplies infrastructure solutions for water to industrial customers. It has business operations across Asia, Middle East and Africa. As reported in the Troubled Company Reporter-Asia Pacific on May 24, 2018, Hyflux Ltd. said that the Company and five of its subsidiaries, namely Hydrochem (S) Pte Ltd, Hyflux Engineering Pte Ltd, Hyflux Membrane Manufacturing (S) Pte. Ltd., Hyflux Innovation Centre Pte. Ltd. and Tuaspring Pte. Ltd. have applied to the High Court of the Republic of Singapore pursuant to Section 211B(1) of the Singapore Companies Act to commence a court supervised process to reorganize their liabilities and businesses. The Company said it is taking this step in order to protect the value of its businesses while it reorganises its liabilities. The Company has engaged WongPartnership LLP as legal advisors and Ernst & Young Solutions LLP as financial advisors in this process. ********* 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 2020. 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 ***