/raid1/www/Hosts/bankrupt/TCRAP_Public/200429.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
Wednesday, April 29, 2020, Vol. 23, No. 86
Headlines
A U S T R A L I A
ABERDEEN HOLDINGS: First Creditors' Meeting Set for May 7
ARISTOCRAT LEISURE: Moody's Alters Outlook on Ba1 CFR to Negative
ARTHURS SEAT: Second Creditors' Meeting Set for May 6
EEMS TECHNOLOGIES: Second Creditors' Meeting Set for May 11
HOME & GIFTWARE: Second Creditors' Meeting Set for May 6
NARRABRI BOWLING: First Creditors' Meeting Set for May 6
STELLER HUB: Second Creditors' Meeting Set for May 6
C H I N A
CAR INC: S&P Lowers ICR to 'CCC' on Deteriorating Liquidity
CHINA HONGQIAO: S&P Alters Outlook to Stable & Affirms 'B+' ICR
HILONG HOLDING: Fitch Cuts LT IDR & Sr. Unsec. Rating to 'B'
LUCKIN COFFEE: Chinese Regulators Raid Offices as Scandal Widens
I N D I A
A H MALLICK AGRO: CARE Keeps D Debt Ratings in Not Cooperating
A.P.R. GINN: ICRA Keeps B on INR5cr Bank Loans in Not Cooperating
ACARA BIOHERB: CARE Keeps D on INR8.5cr Loans in Not Cooperating
ARCHEAN INDUSTRIES: CARE Reaffirms D Rating on INR9.80cr Loan
BAHRA EDUCATIONAL: ICRA Keeps 'D' Ratings in Not Cooperating
BALAJI COTTON: ICRA Maintains B+ Debt Ratings in Not Cooperating
BALAJI LITERARY: ICRA Keeps D on INR12cr Loans in Not Cooperating
CARAVAN OIL: ICRA Lowers Rating on INR6.50cr LT Loan to B+
CHANDITALA BLUE: ICRA Keeps C on INR0.2cr Loan in Not Cooperating
DAKSHIN BUDHAKHALI: CARE Lowers Rating on INR14.11cr Loan to D
DILIGENT MEDIA: ICRA Lowers Rating on INR250cr Loan to C-
GAURISANKAR ELECTRO: CARE Keeps D on INR8cr Debt in Not Cooperating
HKR ROADWAYS: Ind-Ra Affirms D Rating on INR15.25-Bil. Bank Loans
IL&FS LTD: Lenders to Meet This Week to Vote on Restructuring Plan
IL&FS LTD: Moves Closer to Restructuring of INR6,730cr Debt
INDIA: Mulls Proposal to Guarantee $39BB of Small-Business Loans
INDORE DEWAS: Ind-Ra Affirms 'D' Rating on INR5,698BB Bank Loans
JINDAL AGRO: CARE Keeps D on INR54cr Loans in Not Cooperating
KALYAN VAIJINATHRAO: CARE Hikes Rating on INR2.96cr LT Loan to B
KALYANPUR CEMENTS: Ind-Ra Keeps C Issuer Rating in Non-Cooperating
MAA GANGA RICE: CARE Lowers Rating on INR4.80cr LT Loan to 'C'
MODERN ENGINEERING: CARE Lowers Rating on INR15cr LT Loan to C
NARSINGH SINGH: CARE Lowers Rating on INR3cr LT Loan to 'C'
P.G. ICE: CARE Lowers Rating on INR7.19cr LT Loan to 'D'
PREMIER PLASTICS: CARE Lowers Ratings on INR13cr Bank Loans to C
PRERNA STRIPS: CARE Cuts Rating on INR10.65cr LT Loan to 'C'
PRIME URBAN: ICRA Assigns 'B-/A4' Ratings to INR21cr Loan
PURNAM: ICRA Keeps B on INR13.55cr Bank Loan in Not Cooperating
RAJ SNEH AUTO: CARE Keeps D Debt Ratings in Not Cooperating
RAM INDUSTRIES: CARE Lowers Rating on INR15cr LT Loan to C
SAI INDUSTRIES: ICRA Lowers Ratings on INR8.40cr Loans to B+
SEGNO CERAMICS: CARE Keeps D on INR33cr Loans in Not Cooperating
SHRIRAM EPC: CARE Keeps D Debt Ratings in Not Cooperating
SIMPLEX CASTINGS: Ind-Ra Lowers LongTerm Issuer Rating to 'D'
SKM BUILDCON: CARE Lowers Rating on INR5.75cr Loan to 'C'
SPRAY ENGINEERING: ICRA Keeps 'D' Debt Ratings in Not Cooperating
TARENDRA INFRASTRUCTURE: CARE Keeps 'D' Ratings in Not Cooperating
TRIVENI WIRES: CARE Maintains 'D' Debt Ratings in Not Cooperating
USHA IMPEX: CARE Keeps D on INR30cr Bank Loans in Not Cooperating
V.K. GOPAL: ICRA Maintains 'B' Debt Ratings in Not Cooperating
I N D O N E S I A
INDONESIA: Faces Recession as Virus Response Remains Fractured
S I N G A P O R E
HIN LEONG: Has High Profile Loans with Standard Chartered
KRISENERGY LTD: Rubicon Unit Demands US$5.4MM Payment
STRIDES PHARMA: Bank Debt Trades at 16% Discount
S R I L A N K A
SRI LANKA: Fitch Cuts LongTerm IDRs to 'B-', Outlook Negative
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A U S T R A L I A
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ABERDEEN HOLDINGS: First Creditors' Meeting Set for May 7
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Aberdeen
Holdings Pty Ltd will be held on May 7, 2020, at 2:30 p.m. via
teleconference only.
Ivan Glavas of Worrells Solvency & Forensic Accountants was
appointed as administrator of Aberdeen Holdings on April 27, 2020.
ARISTOCRAT LEISURE: Moody's Alters Outlook on Ba1 CFR to Negative
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Moody's Investors Service has affirmed the Ba1 corporate family
rating of Aristocrat Leisure Ltd. At the same time, Moody's has
affirmed the Ba1 foreign currency senior secured bank credit
facility rating of Aristocrat International Pty Limited. The
outlooks on both entities have been changed to negative from
stable.
RATINGS RATIONALE
The rapid and widening spread of the coronavirus outbreak,
deteriorating global economic outlook, falling oil prices, and
asset price declines are creating a severe and extensive credit
shock across many sectors, regions and markets. The combined credit
effects of these developments are unprecedented, and Moody's views
them as a social risk factor under its assessment of ESG
considerations.
Its rating affirmation reflects Aristocrat's strong liquidity and
market position, while the negative outlook reflects the impact on
revenue from coronavirus containment measures and uncertainty about
the duration of the associated economic disruption.
Moody's has affirmed the Ba1 rating reflecting Aristocrat's strong
market presence and distribution across a diversified geographical
footprint, as well as its history of developing products that
continue to prove popular amongst consumers. The company's credit
profile also benefits from increased recurring revenue and earnings
stability as a result of significant organic growth in the premium
gaming operations and digital businesses, and recent acquisitions.
Moody's expects Aristocrat's earnings will be supported by strong
growth in the Digital segment (40% of FY2019 revenues) as consumers
turn to social casino-style and social casual games during the
coronavirus lock-down period. Furthermore, the company's operating
cost initiatives, capital spending reduction, and decision to
temporarily suspend its progressive dividend policy (that is, not
indicate a dividend payout range) should all help to preserve cash
flow.
The company also has strong liquidity with around AUD730 million
cash, which includes a drawdown of its revolving credit facility.
Aristocrat recently upsized this facility from AUD150 million to
AUD286 million to boost liquidity.
However, coronavirus containment measures have severely impacted
Aristocrat's land-based earnings (60% of FY2019 revenues). As a
result, Moody's expects FY2020 EBITDA will reduce by around 45-50%
compared to FY2019, and net debt / EBITDA to exceed the tolerance
threshold of 3.0x for the firm's Ba1 rating.
The rating agency's base case assumes a shutdown of all tribal
casinos in North America until June 2020; and a shut-down of all
non-essential services in Aristocrat's other operating regions
until October 2020. However, there are high risks of more
challenging downside scenarios, and the severity and duration of
the pandemic and containment measures remain uncertain.
Furthermore, the impact of job losses is expected to continue to
weigh on consumers' discretionary spending, even after the current
virus containment measures have been phased out.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) CONSIDERATIONS
The ratings of Aristocrat take into account environmental, social
and governance factors as well.
It considers Aristocrat's operations are exposed to elevated social
risks as responsible gameplay is an increasing focus for gaming
regulation. However, Aristocrat aims to promote a sustainable games
industry. This includes seeking to mitigate social and reputational
risks by increasing transparency for digital game players, and
ensuring age minimums for social casino-style games.
The company's Global Information Security Policy aims to address
these risks and protect customers, partners and employees from
potential data breaches. Aristocrat is also focused on
strengthening its clear-web and dark-web threat intelligence
capabilities to proactively identify and manage potential issues.
Aristocrat's governance has been a supportive factor given that
Aristocrat is an ASX-listed company and is therefore subject to ASX
listing rules, in addition to other relevant laws and regulations.
Aristocrat's Board is responsible for maintaining a sound and
transparent governance framework and ensuring full compliance with
the company's stringent regulatory obligations. Six out of eight
members are independent.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's could change the outlook to stable if non-essential
services resume earlier than expected (that is, before June 2020
for tribal casinos and October 2020 for all other regions), and
social distancing measures are unwound quickly with earnings
returning to more normalized levels over the next 12 months (EBITDA
of around AUD1.3-1.6 billion).
The ratings could be downgraded if (1) the company uses its large
cash balances for major acquisitions or distributions; (2) debt
funds major acquisitions that aren't earnings-accretive; and/or (3)
operating conditions materially deteriorate such that adjusted
debt/EBITDA is sustained above 3.0x, and liquidity contracts
meaningfully.
The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.
COMPANY PROFILE
Aristocrat is a leading gaming provider and games publisher, with
more than 6,400 employees located in offices around the world.
Aristocrat offers a diverse range of products and services
including electronic gaming machines, casino management systems and
digital social games. The Company's land-based products are
approved for use in more than 300 licensed jurisdictions and are
available in over 80 countries.
ARTHURS SEAT: Second Creditors' Meeting Set for May 6
-----------------------------------------------------
A second meeting of creditors in the proceedings of Arthurs Seat
Eagle Pty Ltd has been set for May 6, 2020, at 11:00 a.m. via
teleconference facility.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 4, 2020, at 4:00 p.m.
Craig Crosbie and Robert Ditrich of PwC were appointed as
administrators of Arthurs Seat on March 23, 2020.
EEMS TECHNOLOGIES: Second Creditors' Meeting Set for May 11
-----------------------------------------------------------
A second meeting of creditors in the proceedings of EEMS
Technologies Pty Ltd has been set for May 11, 2020, at 2:30 p.m.
Due to the increased health risk of COVID-19, creditors can only
attend the creditors meeting by telephone or proxy. Please contact
Vince & Associates on 03 9793 5588 for further information.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 8, 2020, at 11:00 a.m.
Peter Robert Vince and Paul William Langdon of Vince & Associates
were appointed as administrators of EEMS Technologies on March 26,
2020.
HOME & GIFTWARE: Second Creditors' Meeting Set for May 6
--------------------------------------------------------
A second meeting of creditors in the proceedings of Home & Giftware
Pty Limited has been set for May 6, 2020, at 11:30 a.m. via
teleconference.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 5, 2020, at 4:00 p.m.
Antony Resnick and Riad Tayeh of de Vries Tayeh was appointed as
administrator of Home & Giftware on March 23, 2020.
NARRABRI BOWLING: First Creditors' Meeting Set for May 6
--------------------------------------------------------
A first meeting of the creditors in the proceedings of Narrabri
Bowling Club Ltd, trading as Narrabri Sporties and trading as Club
Motor Inn, will be held on May 6, 2020, at 11:00 a.m. via a virtual
meeting.
Alan Hayes of Hayes Advisory was appointed as administrator of
Narrabri Bowling on April 24, 2020.
STELLER HUB: Second Creditors' Meeting Set for May 6
----------------------------------------------------
A second meeting of creditors in the proceedings of Steller Hub Pty
Ltd (As Trustee For "Steller Hub") has been set for May 6, 2020, at
10:00 a.m. The meeting will be held virtually using telephone
conference facilities.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 5, 2020, at 5:00 p.m.
Timothy James Brace, Michael Carrafa and Peter Gountzos of SV
Partners were appointed as administrators of Steller Hub on Sept.
20, 2019.
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C H I N A
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CAR INC: S&P Lowers ICR to 'CCC' on Deteriorating Liquidity
-----------------------------------------------------------
On April 27, 2020, S&P Global Ratings lowered its long-term issuer
credit rating on China-based CAR Inc. and the long-term issue
rating on the company's U.S. dollar senior unsecured notes to 'CCC'
from 'B-'. S&P removed all ratings from CreditWatch, where they
were placed with negative implications on April 7, 2020.
CAR's liquidity channels are shrinking as bank funding conditions
weaken. As banks monitor the company's evolving shareholding
structure and operating performance, CAR may face difficulty in
rolling over existing bank loans or obtaining new credit lines. As
a result, CAR may face rising bank loan repayments in addition to
other debt maturities. This will further narrow the liquidity
headroom for its US$300 million (Chinese renminbi [RMB] 2.1
billion) senior unsecured notes due in February 2021.
CAR's remaining liquidity sources--used-car sales and operating
cash flows--may not be sufficient to cover its upcoming debt
maturities. CAR's plan to sell 30,000-35,000 units of used vehicles
in 2020 could provide some liquidity, in addition to the company's
operating cash flows. S&P notes that the used-car market has so far
remained resilient in the face of declining car sales in China.
However, there are still uncertainties related to the company's
disposal plans, including the pricing and its ability to offload
the cars. Moreover, the additional liquidity may not be sufficient
to cover its debt maturities over the 12 months ending March 2021.
Access to capital remains key for CAR after the divestment by
shareholder UCAR Inc. Whether CAR's access to capital markets and
bank funding will improve after Warburg Pincus LLC's acquisition of
its shares through Amber Gem Holdings Ltd. remains key, following
the change in shareholders. UCAR announced its plan to sell its
stake in CAR to Warburg Pincus on April 16. Actions taken by the
potential new largest shareholder to alleviate market concerns
about corporate governance or provide new capital could help
restore market confidence in the company.
UCAR's divestment also increases the risk of triggering the
change-of-control clause on CAR's U.S. dollar notes, potentially
leading to immediate repayment of the notes. The combined holding
of UCAR and Legend Holdings Corp. in CAR could drop to as low as
35.4%--near the 35.0% change-of-control threshold--after UCAR
completes the second tranche of its deal with Amber Gem.
S&P said, "The negative outlook reflects our view that CAR may not
have sufficient liquidity to meet its upcoming maturities. The
company has fewer options to refinance the U.S. dollar notes
maturing in February 2021, given its deteriorating banking
relationships.
"We could lower the ratings if CAR's liquidity worsens or its
ability to refinance ongoing maturities (especially the large
bullet maturity in February 2021) does not improve over the next
six months. This may happen if the company experiences further
deterioration in its operations, cash flow generation (from
used-car sales or car rental), or banking relationships.
"We could raise the ratings if CAR's liquidity strengthens through
improved access to capital markets, better relationships with
banks, or a sizable cash injection, such that the company can cover
its near-term maturities, including the U.S. dollar notes."
CHINA HONGQIAO: S&P Alters Outlook to Stable & Affirms 'B+' ICR
---------------------------------------------------------------
On April 27, 2020, S&P Global Ratings revised its outlook on
aluminum producer China Hongqiao Group Ltd. to stable from
positive. At the same time, S&P affirmed its 'B+' long-term issuer
credit rating on the company.
The uncertainty surrounding aluminum demand and price puts pressure
on China Hongqiao's leverage.
S&P said, "We revised our outlook because the COVID-19 pandemic and
tough economic conditions globally have cast a shadow on aluminum
demand and price. We expect the company's average selling price of
aluminum to decline 6.3% by Chinese renminbi (RMB) 800 per ton in
2020 and sales volume to drop by 6%. This will push China
Hongqiao's ratio of funds from operations (FFO) to debt down toward
20% in 2020. We expect aluminum prices to revive in 2021 on likely
recovered economic conditions both in China and globally, and lead
to an improvement in the ratio to close to 30%."
The new production plant in Yunnan will enhance China Hongqiao's
overall cost competitiveness.
S&P said, "In our view, this plant will go a long way in
diversifying the company's production assets. Also, the one million
tons of annual production capacity at the plant, which we expect to
commence operations in the second half of 2020, will further lower
unit production cost." This is because of a favorable hydropower
tariff of RMB0.25 per kilowatt hour (including value-added tax)
agreed to by the Yunnan government. The tariff is below the
company's existing power generation cost. However, uncertainty over
the tariff's implementation and sustainability over a longer term
will be key risks to China Hongqiao.
China Hongqiao will remain disciplined in capex and maintain
positive FOCF.
S&P expects the company's total capital expenditure (capex) to
increase to RMB4.5 billion in 2020, from RMB3.9 billion in 2019,
for plant construction in Yunnan and technological upgrades of
existing production facilities. It will invest RMB1.0 billion to
move capacity from Shandong to Yunnan. The Yunnan government will
also provide funding support and corporate income tax exemption to
facilitate the project. S&P forecasts China Hongqiao will maintain
positive free operating cash flow (FOCF) and largely stable total
debt.
The company will face substantial refinancing and liquidity
pressure in 2021, with RMB26 billion of public debt maturities.
S&P expects the improvement in industry conditions in 2021 to
support the company's refinancing. China Hongqiao's ample cash
balance also underpins its financial flexibility in meeting debt
maturities and liquidity needs. As of Dec. 31, 2019, the company
has RMB41.9 billion of unrestricted cash on its balance sheet.
S&P said, "The stable outlook on China Hongqiao reflects our
expectation that the company will maintain resilient financial
metrics over the next 12–24 months. We expect China Hongqiao's
FFO-to-debt ratio to decline to about 20% in 2020, owing to lower
average selling price of aluminum and alumina due to the COVID-19
outbreak. We then expect the ratio to recover to around 30% in
2021, driven by recovering prices as domestic economic conditions
improve. The recovery is also supported by our expectation that the
new plant in Yunnan will commence operations from the second half
of 2020 and that will reduce average unit production cost because
of favorable hydropower tariff.
"We could lower the rating on China Hongqiao if the company's
FFO-to-debt ratio falls below 20% over a sustained period. This
could happen if aluminum prices are lower than our expectation or
operating costs and capex are above our estimates. This could also
happen if the unit production cost of the Yunnan project turns out
to be much higher than we expect or if the favorable power tariff
in Yunnan is not sustainable in the long term.
"We could raise the rating on China Hongqiao if the company's
FFO-to-debt exceeds 30% over a sustained period and its liquidity
remains adequate. This could happen if the company further lowers
unit production cost, while maintaining disciplined capex."
China Hongqiao is one of the world's largest primary aluminum
producers, with annual production capacity of 6.5 million tons. The
company is an integrated producer with businesses such as bauxite
mining, alumina refinery, power generation, and production and
sales of molten aluminum, ingots, and alloy products. It is
headquartered in Shandong province, China.
China Hongqiao was listed on the Hong Kong stock exchange in March
2011.
HILONG HOLDING: Fitch Cuts LT IDR & Sr. Unsec. Rating to 'B'
------------------------------------------------------------
Fitch Ratings has downgraded Hilong Holding Limited's Long-Term
Issuer Default Rating to 'B' from 'B+'. The rating Outlook is
Negative. The senior unsecured rating has also been downgraded to
'B' from 'B+'. The Recovery Rating remains at 'RR4'. The ratings
have been removed from Rating Watch Negative.
The downgrade reflects Fitch's expectations of the impact on
Hilong's earnings and cash flows from the steep decline in oil
prices and that the downturn may be deep and lengthy. Fitch
believes that Hilong's credit metrics will be stretched under this
scenario.
Fitch expects the company to use its readily available cash and
undrawn credit facilities to redeem its USD165 million 7.25% senior
unsecured notes due June 2020, depleting its near-term liquidity.
The Negative Outlook primarily reflects the uncertainty on the
company's ability to replenish its liquidity.
KEY RATING DRIVERS
Industry Leader Pressured by Downturn: Hilong is an industry leader
in China in drill-pipe manufacturing and oil country tubular good
(OCTG) coating services. This is offset by its expectation of a
sustained decline in oil prices and decrease drilling activities.
Fitch believes Hilong's new orders and sales will decrease, its
margins will narrow and its cash conversion cycle will
deteriorate.
According to management, the near-term impact of lower oil prices
will be limited. Fitch recognizes that Hilong can reduce its capex
during an industry downturn and cut its dividends, and Fitch
expects a reduction in annual capex to CNY150 million and no
dividends in 2021. However, current industry conditions are not
likely to materially improve and capital market support is
uncertain.
Credit Metrics at Risk: Fitch estimates Hilong's FFO net leverage
declined to 3.1x in 2019 from 3.3 in 2018 due to improved sales and
capital discipline (2019 capex of CNY319 million). Fitch believes
oil prices may result in a longer-term deterioration in the
company's credit metrics as sales decline and margins contract.
Fitch believes Hilong's FFO net leverage may trend to 4.5x in
2022.
Tight Liquidity after Redemption: Management has indicated that the
company had about CNY850 million in unrestricted cash and CNY863
million in undrawn credit facilities at end-February 2020 available
to redeem its USD165 million note due in June. Fitch believes the
onshore credit facilities remain available due to Hilong's solid
onshore banking relationships. The use of the cash balance,
however, would deplete Hilong's near-term liquidity.
The company's management is in the process of exploring financing
options, including syndicated loans, bank borrowings and capital
market solutions that upon completion would improve the company's
liquidity position. The company continues to make progress in
longer-term, financing solutions.
DERIVATION SUMMARY
Hilong's ratings are primarily supported by its market position in
drill-pipe manufacturing and coating services for oil country
tubular goods in China and reflect its expanding international
presence. Hilong has a stronger financial profile in terms of
leverage and coverage than Honghua Group Limited (B/Stable,
Standalone Credit Profile: 'b-'). Hilong's ratings are constrained
by the expected impact on the financial profile from a sustained
decline in oil prices. Fitch believes that Hilong's credit metrics
will be stretched if the downturn is longer and deeper than
expected.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within its Rating Case for the Issuer
- Revenue to decline by 7.5% yoy in 2020 and 25% yoy in 2021
- EBITDA margin of 22% in 2020 and 20% in 2021
- Annual capex of CNY275 million in 2020 and CNY150 million in
2021
- No acquisitions in 2020 and 2021
Recovery Rating Assumptions:
Its recovery analysis is based on liquidation value. The
liquidation value is derived from the value of balance sheet assets
that can be realized in sale or liquidation process, and 10%
administrative claim.
The Recovery Rating assigned to Hilong's senior unsecured debt is
'RR4' because under Fitch's Country-Specific Treatment of Recovery
Ratings criteria, China falls into the Group D of countries in
terms of creditor friendliness. Recovery Ratings of issuers with
assets in this group are capped at 'RR4'.
RATING SENSITIVITIES
Factors That Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade:
- The Outlook will be revised to Stable if there is evidence of
stabilization of business operations and an improvement in Hilong's
liquidity profile
Factors That Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade:
- Hilong fails to repay or refinance the bond that matures in
June 2020
- A worsening in Hilong's debt maturity profile
- A significant deterioration in working capital requirement,
order book or industry outlook
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
LIQUIDITY AND DEBT STRUCTURE
Sufficient Liquidity to Redeem Bond: Hilong had CNY1.7 billion in
readily available cash and undrawn credit facilities in at
end-February 2020 to redeem its USD165 million senior unsecured
notes due in June 2020. The use of the company's cash balance would
deplete its near-term liquidity, unless it replenishes its
liquidity through fresh borrowings.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING
The principal sources of information used in the analysis are
described in the Applicable Criteria.
ESG CONSIDERATIONS
ESG issues are credit neutral or have only a minimal credit impact
on the entity(ies), either due to their nature or the way in which
they are being managed by the entity(ies).
LUCKIN COFFEE: Chinese Regulators Raid Offices as Scandal Widens
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Bloomberg News reports that Chinese investigators raided the
offices of Luckin Coffee Inc. as part of a multi-agency
investigation into its finances, according to a person familiar
with the matter, as pressure grows on the formerly high-flying
coffee chain at the center of an accounting scandal.
Bloomberg relates that the raid was carried out jointly by
officials from different government agencies on April 26 as part of
an investigation led by the China Securities Regulatory Commission
into the beleaguered startup, said the person who was not
authorized to speak publicly.
According to Bloomberg, the agencies also involved in the
investigation include the State Administration for Market
Regulation and the State Taxation Administration, said the person.
The CSRC, China's securities regulator, started the investigation
at the request of its U.S. counterpart the Securities and Exchange
Commission, which oversees the Nasdaq exchange where Luckin's
shares are traded, said the person.
Luckin's company representatives did not immediately respond to
calls and texts for comment, but posted on its Weibo account that
the company is cooperating with authorities and that store
operations are normal, Bloomberg says.
News of the raid and investigation was first reported by Dow Jones
Newswires, Bloomberg relates.
Fall-out from the scandal has widened: major lenders like Morgan
Stanley, Credit Suisse Group AG and Haitong International
Securities Group are now at risk of having to book losses on margin
loans to Luckin's founder Lu Zhengyao, Bloomberg says.
About Luckin Coffee
Based in China, Luckin Coffee Inc. (NASDAQ: LK) --
https://www.luckincoffee.com/ --- has pioneered a technology-driven
retail network to provide coffee and other products of high
quality, high affordability, and high convenience to customers.
Empowered by big data analytics, AI, and proprietary technologies,
the Company pursues its mission to be part of everyone's everyday
life, starting with coffee.
As reported in the Troubled Company Reporter-Asia Pacific on April
7, 2020, China Daily said that Luckin Coffee Inc, the so-called
rival to Starbucks in China, has exposed itself to the risks of
delisting and even bankruptcy due to severe fabrication of sales
data, experts said.
China Daily related that the Nasdaq-listed Chinese coffee chain saw
its share price crash more than 75 percent to $6.40 on April 2
after the company disclosed that its earnings results were
substantially inflated. It dropped nearly 15 percent more in the
first two hours of trading on April 3.
Liu Jian, chief operating officer and a director of the company,
and several employees reporting to him, had engaged in misconduct,
including fabricating transactions, a company statement said on
April 2.
The aggregate sales associated with fabricated transactions amount
to around CNY2.2 billion (US$310 million) during the April to
December period last year, according to Luckin's preliminary
internal investigation, the statement said.
=========
I N D I A
=========
A H MALLICK AGRO: CARE Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of A H Mallick
Agro Services and Cold Storage Private Limited (AMASCS) continues
to remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 8.56 CARE D; Issuer not cooperating;
Facilities Based on best available
Information
Short Term Bank 0.26 CARE D/CARE D; Issuer not
Facilities cooperating; Based on best
available information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from AMASCS to monitor the
ratings vide e-mail communications/letters dated April 7, 2020,
April 9, 2020 and April 13, 2020 and numerous phone calls. However,
despite CARE's repeated requests, the entity has not provided the
requisite information for monitoring the ratings. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the publicly available information which however, in CARE's
opinion is not sufficient to arrive at a fair rating. The rating on
AMASCS's bank facilities will now be denoted as CARE D; ISSUER NOT
COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Detailed description of the key rating drivers
At the time of last rating in February 15, 2019 the following were
the rating strengths and weaknesses; (Updated the information
available from Ministry of Corporate Affairs).
Key Rating Weaknesses
* On-going delay in debt Servicing: There are on-going delays in
debt servicing of the company.
A H Mallick Agro Services and Cold Storage Pvt. Ltd. (AMASCS) was
incorporated in January 2012 by Mallick family of Hooghly, West
Bengal to provide cold storage services with the facility being
located at village: Gholsara, Hooghly, West Bengal. However, the
commercial operation has been started from March 2013. The company
is currently engaged in the business of providing cold storage
facility at the same location primarily for potatoes and is
operating with a storage capacity of 15,650 metric ton (MT). This
apart, the company is also into potato trading business.
A.P.R. GINN: ICRA Keeps B on INR5cr Bank Loans in Not Cooperating
-----------------------------------------------------------------
ICRA said ratings for the INR5.00 crore bank facilities of A.P.R.
Ginn And Pressing Mills to remain under Issuer Not Cooperating
category. The long-term rating is denoted as [ICRA]B (Stable)
ISSUER NOT COOPERATING .
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 5.00 [ICRA]B (Stable); ISSUER NOT
Fund Based/CC COOPERATING; Rating continue
to remain under the 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis dated information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity.
A.P.R. Ginn & Pressing Mills is a proprietorship concern
established in the year 1985 by Mr. A.P. Rangasamy. The company
operates a cotton ginning and pressing unit in Coimbatore,
Tamilnadu with 24 ginning machines each with a production capacity
of 50 kg of ginned cotton per hour. APR mainly deals in DCH variety
of raw cotton which is procured directly from farmers. The company
produces cotton lint which is sold to various dealers.
ACARA BIOHERB: CARE Keeps D on INR8.5cr Loans in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of ACARA
Bioherb Private Limited (ABPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Short term Bank 8.50 CARE D; Issuer Not Cooperating;
Facilities on the basis of best available
information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated February 18, 2019, placed
the rating(s) of ABPL under the 'issuer non-cooperating' category
as ABPL had failed to provide information for monitoring of the
rating. ABPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails, phone calls
and email dated April 6, 2020 to April 13, 2020. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the public available information which however, in CARE's
opinion is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Detailed description of the key rating drivers
The rating assigned to the bank facilities of ACARA Bioherb Private
Limited continues to be tempered by ongoing delays in servicing
debt obligations.
Key Rating Weakness
* Ongoing delays in servicing interest: There are ongoing delays
in servicing debt obligations on time due to stressed liquidity
position.
Key Rating Strengths
* Experienced promoters in the trading of herbal aromatic oils,
extracts and incense sticks: The promoters, Mr H.R.Hanumantha
Kumar and Mr H.Pawan have an experience of more than four decades
in the business of trading of herbal aromatic and essential oils,
herbal extracts and incense sticks. The experience and knowledge
gained from this business helped the promoters in setting up of the
manufacturing of the herbal cosmetics and extracts and establishing
relationships with suppliers and customers.
Bangalore based Acara Bioherb Private Limited (ABPL) is a Private
Limited Company started by Mr. H.Pawan in the year 2012. ABPL is
involved in the business of manufacturing and exporting of herbal
cosmetics and herbal extracts.
ARCHEAN INDUSTRIES: CARE Reaffirms D Rating on INR9.80cr Loan
-------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Archean Industries Private Limited (AIPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Short-term Bank
Facilities 9.80 CARE D Reaffirmed
Detailed Rationale & Key Rating Drivers
The ratings assigned to the bank facilities of AIPL takes into
account the delays in debt servicing by the company, due to its
strained liquidity position. CARE has withdrawn the rating
assigned to the term-loan sanctioned by Axis Bank Limited with
immediate effect as the company repaid the said loan in full
through one time settlement and there is no amount outstanding
under the loan as on date.
Rating Sensitivities
Positive Factors
* Satisfactory repayment track record on a sustained basis
Key Rating Weaknesses
* Instances of delays in debt servicing due to poor liquidity
position: The company has term debt obligation towards SREI
equipment finance limited against which the company has negative
gross cash accruals. The company continues to report loss and
negative gross cash accruals over the last three financial year.
The company's interest coverage ratio continues remain below unity
at 0.87x in FY19. The company's operating cycle remained stretched
at 184 days in FY19 owing to its higher inventory period. The
company's inventory holding period has been generally high due to
the nature of business, wherein the bulk consignments are generally
made once in each quarter to meet the economic size of shipment.
Liquidity - Poor
The company has negative gross cash accruals against repayment
obligation. The company's working capital facility is 100% utilized
over the past twelve months ended March 2020. The company had a
free cash balance of INR0.30 crore and fixed deposit (more than 12
months maturity) as margin money of INR2.12 crore as on March 31,
2019.
AIPL was promoted in 1984 by Mr. P B Anandam, a first generation
entrepreneur. The company's main line of business is production and
export of landscape granite stones and products such as kerb
stones, cobblestones etc. primarily to the US and European markets.
AIPL is part of the Archean group, which has varied interests in
granites, industrial salt and other chemical
businesses.
BAHRA EDUCATIONAL: ICRA Keeps 'D' Ratings in Not Cooperating
------------------------------------------------------------
ICRA said ratings for the INR45.00 crore bank facilities of Bahra
Educational and Charitable Society continue to remain under Issuer
Not Cooperating category. The long-term rating is denoted as
[ICRA]D ISSUER NOT COOPERATING.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 5.25 [ICRA]D ISSUER NOT COOPERATING;
Rating Continues to remain under
the 'Issuer Not Cooperating'
category
Term Loan 24.48 [ICRA]D ISSUER NOT COOPERATING;
Rating Continues to remain under
the 'Issuer Not Cooperating'
category
Unallocated 15.27 [ICRA]D ISSUER NOT COOPERATING;
Rating Continues to remain under
the 'Issuer Not Cooperating'
category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis dated information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity.
Bahra Educational and Charitable Society (BECS) was formed in 2009
and has set up a state private university in Shimla named Bahra
University. Bahra University has six constituent colleges which
offer engineering, management, computer applications, pharmacy,
hospitality and law courses. The total student strength across the
six colleges during AY 2016-17 is ~1800 students.
BALAJI COTTON: ICRA Maintains B+ Debt Ratings in Not Cooperating
----------------------------------------------------------------
ICRA said ratings for the INR10.00-crore bank facilities of Sri
Balaji Cotton Agro Industries Continues to remain under 'Issuer Not
Cooperating' category'. The ratings are denoted as
"[ICRA]B+(Stable) ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 5.00 [ICRA]B+(Stable); ISSUER NOT
Fund Based– COOPERATING; Rating Continues
Cash Credit to remain under issuer not
cooperating category
Long Term- 0.80 [ICRA]B+(Stable); ISSUER NOT
Fund Based– COOPERATING; Rating Continues
Term Loan to remain under issuer not
cooperating category
Long term– 4.20 [ICRA]B+(Stable); ISSUER NOT
Unallocated COOPERATING; Rating Continues
to remain under issuer not
cooperating category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
information on the issuers' performance. Accordingly, the lenders,
investors and other market participants are advised to exercise
appropriate caution while using this rating as the rating may not
adequately reflect the credit risk profile of the entity.
Sri Balaji Cotton Agro Industries (SBCAI) was incorporated in year
2011 as a partnership firm and is engaged in cotton ginning and
pressing activities with a product mix of cotton lint and cotton
seed. The firm has a plant located at Bhainsa village of Adilabad
district of Telangana with 30 double roller gins with capacity to
produce 15000 Metric tons of cotton lint per annum. The firm
started its commercial production in January 2012.
BALAJI LITERARY: ICRA Keeps D on INR12cr Loans in Not Cooperating
-----------------------------------------------------------------
ICRA said ratings for the INR12.00crore bank facilities of Shri
Balaji Literary & Charitable Society Bahra Group of Institutions
and continue to remain under Issuer Not Cooperating category. The
long-term rating is denoted as [ICRA]D ISSUER NOT COOPERATING.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 3.00 [ICRA]D ISSUER NOT COOPERATING;
Rating Continues to remain under
the 'Issuer Not Cooperating'
category
Term Loan 9.00 [ICRA]D ISSUER NOT COOPERATING;
Rating Continues to remain under
the 'Issuer Not Cooperating'
category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis dated information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity.
Operational since 2009, SBLC is a part of Punjab based Rayat-Bahra
Group, which operates more than 35 colleges spread across 5
campuses and one Private University. SBLCS currently operates five
colleges through one campus which is located at Patiala (Punjab)
and offers engineering, management, computer applications, pharmacy
and diploma courses under various colleges in the campus. The total
student strength across the five colleges during AY 2016-17 was
~1700 students.
CARAVAN OIL: ICRA Lowers Rating on INR6.50cr LT Loan to B+
----------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Caravan
Oil Suppliers (COS), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 6.50 [ICRA]B+ (Stable); ISSUER NOT
Fund Based/CC COOPERATING; Rating downgraded
from [ICRA]BB (Stable) and
continues to remain under
'Issuer Not Cooperating' category
Rationale
The rating is downgraded because of lack of adequate information
regarding COS performance and hence the uncertainty around its
credit risk. ICRA assesses whether the information available about
the entity is commensurate with its rating and reviews the same as
per its "Policy in respect of non-cooperation by the rated entity".
The lenders, investors and other market participants are thus
advised to exercise appropriate caution while using this rating as
the rating may not adequately reflect the credit risk profile of
the entity, despite the downgrade.
As part of its process and in accordance with its rating agreement
with Caravan Oil Suppliers, ICRA has been trying to seek
information from the entity so as to monitor its performance, but
despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite information
and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119,
dated November 1, 2016, ICRA's Rating Committee has taken a rating
view based on the best available information.
COS was established in 1986 by Mr. Varghese. Currently, the firm is
owned and managed by Asher family who took over the firm in 1994.
The partners of the firm are namely, Mr. Sanjay Asher, Mrs. Preeti
Asher, Mrs. Nita Asher and Mrs. Yukti Asher. The firm is engaged
into the trading of industrial consumables ranging from industrial
lubricants, industrial tapes and adhesives, safety products, metal
working fluids, carbide cutting tools and abrasives. The firm is an
authorized distributor of Shell India Marketing Private Limited
(Shell), Houghton, 3M India Limited (3M), WIDIA and Dow Corning
India Private Limited (Dow Corning).
CHANDITALA BLUE: ICRA Keeps C on INR0.2cr Loan in Not Cooperating
-----------------------------------------------------------------
ICRA said rating for the INR0.20 crore bank facilities of
Chanditala Blue Print continue to remain under 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA]C; ISSUER
NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based 0.20 [ICRA]C ISSUER NOT COOPERATING;
Limit–Cash Rating continues to remain under
Credit 'Issuer Not Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
Incorporated in 2014, CBP is engaged in wholesale trading of
medicines. The partners have an experience of around two decades in
this line of business with its medical shop in Sonarpur, West
Bengal.
DAKSHIN BUDHAKHALI: CARE Lowers Rating on INR14.11cr Loan to D
--------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Dakshin Budhakhali Improvement Society (DBIS), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 14.11 CARE D; Issuer not cooperating;
Facilities Revised from CARE BB; Stable,
Issuer not cooperating on the
basis of best available
information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated December 5, 2018, placed the
rating of DBIS under the 'issuer non-cooperating' category as DBIS
had failed to provide information for monitoring of the rating and
had not paid the surveillance fees for the rating exercise as
agreed to in its Rating Agreement. DBIS continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter dated
February 04, 2020. In line with the extant SEBI guidelines, CARE
has reviewed the rating on the basis of the best available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The rating has been revised on account of delays in debt servicing
by the society.
Detailed description of the key rating drivers
Key Rating Weaknesses
* Delay in servicing of debt obligations: There are ongoing delays
in servicing of debt obligations by DBIS.
DBIS was formed in 1995 as a charitable society. DBIS started
micro-finance activity from May 2006 by lending to women borrowers
engaged in small businesses under 'Self Help Groups' model in rural
area of West Bengal. It also provides other technical support
services to its borrowers which enables them to achieve
self-sustainability.
DILIGENT MEDIA: ICRA Lowers Rating on INR250cr Loan to C-
---------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Diligent
Media Corporation Limited (DMCL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non-convertible 250.0 [ICRA]C- ISSUER NOT COOPERATING;
Debenture (NCD) revised from [ICRA]B (Negative);
Programme moved to 'Issuer Not
Cooperating'
Rationale
The rating downgrade is because of lack of adequate information
regarding performance of DMCL and hence the uncertainty around its
credit risk. ICRA assesses whether the information available about
the entity is commensurate with its rating and reviews the same as
per its "Policy in respect of non-cooperation by the rated entity".
The lenders, investors and other market participants are thus
advised to exercise appropriate caution while using this rating as
the rating may not adequately reflect the credit risk profile of
the entity, despite the downgrade.
As part of its process and in accordance with its rating agreement
with DMCL, ICRA has been trying to seek information from the entity
so as to monitor its performance, but despite repeated requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information and in line with SEBI's Circular
No. SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, ICRA's
Rating Committee has taken a rating view based on the best
available information.
ICRA has withdrawn the [ICRA]A4 rating assigned to the INR20 crore,
non-fund based facility of DMCL as there is no amount outstanding
against the rated instrument.
Until October 9, 2019, DMCL published DNA, an English daily
newspaper, which was circulated in Mumbai and Ahmedabad.
GAURISANKAR ELECTRO: CARE Keeps D on INR8cr Debt in Not Cooperating
-------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Gaurisankar
Electro Castings Private Limited (GECPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 8.26 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from GECPL to monitor the rating
vide e-mail communications/letters dated April 7, 2020, April 9,
2020, April 13, 2020 and numerous phone calls. However, despite
CARE's repeated requests, the entity has not provided the requisite
information for monitoring the ratings. In line with the extant
SEBI guidelines, CARE has reviewed the rating on the basis of the
publicly available information which however, in CARE's opinion is
not sufficient to arrive at a fair rating. The rating on GECPL's
bank facilities will now be denoted as CARE D; ISSUER NOT
COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
At the time of last rating in February 6, 2019 the following were
the rating strengths and weaknesses (Updated the information
available from Ministry of Corporate Affairs).
Detailed description of the key rating drivers
Key Rating Weakness
* Ongoing delays in debt servicing: There are on-going delays in
servicing of debt obligations of the company.
GECPL, incorporated in 2001 by Mr. Ramjeet Prasad and Mr. Sunil
Kumar based out of Jharkhand with the objective of manufacturing of
iron & steel products. Since inception, the company is engaged in
manufacturing of mild steel (MS) bars and the facility of the
company is located at Giridih, Jharkhand with an annual installed
capacity of 17000 Metric Tons per annum for M.S. Bar, 24,000 Metric
Tonnes per annum for M.S. Ingot and 2000 Metric Tons per annum for
M.S. Scrap.
HKR ROADWAYS: Ind-Ra Affirms D Rating on INR15.25-Bil. Bank Loans
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed HKR Roadways
Limited's (HKRRL) bank loans' rating as follows:
-- INR15.250 bil. Bank loans (long-term) affirmed with IND D
rating.
KEY RATING DRIVERS
The affirmation reflects continued delays in debt serving
obligations by HKRRL since the last rating action due to its tight
liquidity position.
RATING SENSITIVITIES
Positive: Timely debt servicing for three consecutive months will
be positive for the rating.
COMPANY PROFILE
HKRRL is a special purpose company incorporated to implement a lane
expansion (to four lanes from two lanes) project on a design,
build, finance, operate and transfer basis under a 25-year
concession from Andhra Pradesh Road Development Corporation.
IL&FS LTD: Lenders to Meet This Week to Vote on Restructuring Plan
------------------------------------------------------------------
The Economic Times reports that lenders to IL&FS Tamil Nadu Power
Company (ITPCL), which is undergoing insolvency proceedings, are
likely to meet this week to finalise a restructuring plan, a source
said. ITPCL is a special purpose vehicle (SPV) incorporated by the
IL&FS Group under its energy platform (IEDCL) for implementation of
a thermal power project at Cuddalore in Tamil Nadu.
ET relates that the company recently received RP4 rating from
Crisil, which is required for implementation of a resolution plan
for stressed companies. "The financial creditors of ITPCL are most
likely to e-vote on the proposal this week to conclude the
restructuring," the source said. ITPCL's consortium of lenders
include 19 banks and financial institutions led by the Punjab
National Bank, the report notes.
It owes over INR6,700 crore to its lenders and around INR900 crore
to IL&FS Group entities, ET discloses citing the affidavit
submitted by IL&FS before the National Company Law Appellate
Tribunal (NCLAT) in January. IL&FS had earlier initiated
restructuring of ITPCL, which also included selling its stake to
the Tamil Nadu government and other stakeholders, but it was
unsuccessful, the report adds.
About IL&FS
Infrastructure Leasing & Financial Services Limited (IL&FS) --
https://www.ilfsindia.com/ -- is an infrastructure development and
finance company based in India. It focuses on the development and
commercialization of infrastructure projects, and creation of value
added financial services. The company operates in Financial
Services, Infrastructure Services, and Others segments.
As reported in the Troubled Company Reporter-Asia Pacific, the
Indian Express related that the Indian government, in October 2018,
stepped in to take control of crisis-ridden IL&FS by moving the
National Company Law Tribunal (NCLT) to supersede and reconstitute
the board of the firm which has defaulted on a series of its debt
payments. This was said to be an attempt to restore the confidence
of financial markets in the credibility and solvency of the
infrastructure financing and development group.
IL&FS LTD: Moves Closer to Restructuring of INR6,730cr Debt
-----------------------------------------------------------
Outlook India reports that crisis-hit IL&FS inches closer to
restructuring its debt of over INR6,700 crore as its subsidiary
IL&FS Tamil Nadu Power Company (ITPCL) has received RP4 ratings for
its debt from Crisil.
According to the report, IL& FS spokesperson confirmed the company
having received RP4 rating for ITPCL, a precursor for moving
forward on the restructuring proposal involving over INR6,700 crore
debt.
Debt facilities or instruments with RP4 rating are considered to
have moderate degree of safety regarding timely servicing of
financial obligations, Outlook India relates.
This comes as another major development during the lockdown period
for IL& FS, after the successful completion of the sale of IL& FS
Wind Power Services (IWSPL), a wholly owned subsidiary of IL& FS
Energy Development Company Limited (IEDCL), to ORIX Corporation,
Japan, earlier this month, Outlook India says.
With this rating, ITPCL has called for a meeting of Lenders this
week to vote on a restructuring proposal.
Outlook India notes that in its January 2020 affidavit to the
Mumbai bench of NCLT, IL& FS said: "Once the (restructuring
approval) and rating by credit rating agencies is received, the
parties will implement the restructuring proposal after seeking
relevant approvals".
ITPCL has an overall debt of INR6,730 crore, as per company''s
latest filings in NCLT, from 19 banks and financial Institutions
led by the Punjab National Bank, Outlook India discloses.
According to the report, lenders of ITPCL have preferred
restructuring the debt, as against adopting other resolution
options, given its sustainable, ongoing and healthy operation
ratios.
Outlook India, citing the IL&FS affidavit, says the subsidiary was
unable to meet its debt obligations primarily on account of overdue
amount of over INR1,700 crore from Tamil Nadu Generation and
Distribution Corporation Limited (TANGEDCO) and PTC India. ITPCL
has power purchase agreements (PPA) with both TANGEDCO and PTC.
As per sources, IL& FS had forwarded the restructuring proposal
earlier this year to its lenders that envisaged part servicing of
debt over the 20 year life of the plant and treating balance with
various options, Outlook India relates.
About IL&FS
Infrastructure Leasing & Financial Services Limited (IL&FS) --
https://www.ilfsindia.com/ -- is an infrastructure development and
finance company based in India. It focuses on the development and
commercialization of infrastructure projects, and creation of value
added financial services. The company operates in Financial
Services, Infrastructure Services, and Others segments.
As reported in the Troubled Company Reporter-Asia Pacific, the
Indian Express related that the Indian government, in October 2018,
stepped in to take control of crisis-ridden IL&FS by moving the
National Company Law Tribunal (NCLT) to supersede and reconstitute
the board of the firm which has defaulted on a series of its debt
payments. This was said to be an attempt to restore the confidence
of financial markets in the credibility and solvency of the
infrastructure financing and development group.
INDIA: Mulls Proposal to Guarantee $39BB of Small-Business Loans
----------------------------------------------------------------
Siddhartha Singh at Bloomberg News reports that India is
considering a proposal to guarantee as much as INR3 trillion (US$39
billion) of loans to small businesses as part of a plan to restart
Asia's third-largest economy, which is reeling under the impact of
a 40-day lockdown, people with knowledge of the matter said.
Under the proposal, small firms will be eligible to borrow an
additional 20% of their credit limit, the people said, asking not
to be identified as the discussions are private. The extra debt
will be fully backed by Prime Minister Narendra Modi's
administration, the people said, Bloomberg relates. The government
will set up a special fund to pay for any defaults, they said.
India's government and regulators are slowly coming out with
programs as everyone, from companies to fund managers, struggle
under the world's biggest lockdown, which has halted manufacturing
and wiped out consumption, according to Bloomberg. With the economy
set to contract for the first time in four decades, Modi's
endorsement is the only way to make it attractive for banks, which
are concerned about rising delinquencies, to lend to small
businesses, Bloomberg says.
"A large part of the fiscal package of developed countries such as
the U.S. and U.K. have involved loan guarantees," Bloomberg quotes
Teresa John, an economist at Nirmal Bang Pvt, as saying. "If
targets are set for banks and shadow banks for availing refinancing
under such a scheme, along with credit guarantees this will, to an
extent, ensure credit flow to MSMEs and ultimately help in reviving
growth," she said, referring to micro, small and medium
enterprises.
Earlier on April 27, the country's central bank offered INR500
billion credit line to mutual funds to avoid distress sale of
assets and calm investor concerns after Franklin Templeton shut six
of them last week citing a lack of liquidity, Bloomberg reports.
Bloomberg relates that small businesses, which form the bedrock of
the $2.7 trillion economy, have been the worst hit by the lockdown
with their activity coming to a halt. An estimated 100 million
workers in mining, construction, manufacturing and services sectors
have been rendered jobless due to the lockdown, Subhash Chandra
Gar, a former top bureaucrat in the finance ministry, wrote in a
blog.
According to Bloomberg, governments across the world are rushing to
help small businesses. The U.S., earlier this month said it would
provide $320 billion to make new loans under the Paycheck
Protection Program, which provides forgivable loans to such
companies that keep employees on the payroll for eight weeks, while
the Philippines plans to give PHP35 billion (US$690 million) to
workers of shuttered small businesses.
INDORE DEWAS: Ind-Ra Affirms 'D' Rating on INR5,698BB Bank Loans
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Indore Dewas
Tollways Limited's (IDTL) bank loans' rating at 'IND D', as
follows:
-- INR5,698.53 bil. (increased from INR5,500.2 bil.)* Bank loans
(Long-term) affirmed with IND D rating.
*Outstanding as of March 31, 2020. The increase in debt level is
due to the changes in the adjustments of the earlier prepayments in
both principal and interest outstanding compared to the adjustments
being made only in the principal outstanding.
KEY RATING DRIVERS
The affirmation reflects IDTL's continued delays in serving debt
obligations due to a tight liquidity position, resulting from
lower-than-expected toll collection.
RATING SENSITIVITIES
Positive: Timely debt servicing for three consecutive months will
be positive for the rating.
NON-COOPERATION WITH PREVIOUS RATING AGENCY
IDTL is a special purpose vehicle incorporated to implement a lane
expansion (from four to six lanes) project on a design, build,
finance, operate and transfer basis under a 25-year concession from
National Highways Authority of India ('IND AAA'/Stable). IDTL is
owned by the Gayatri Group.
JINDAL AGRO: CARE Keeps D on INR54cr Loans in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Jindal Agro
Mills Private Limited (JAMPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 8.50 CARE D; Issuer not cooperating;
Facilities Based on best available
Information
Short term Bank 45.50 CARE D; Issuer not cooperating;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated November 22, 2018, placed
the ratings of JAMPL under the 'issuer non-cooperating' category as
JAMPL had failed to provide information for monitoring of the
ratings as agreed to in its Rating Agreement. JAMPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 16, 2020. In line with the extant SEBI guidelines, CARE has
reviewed the ratings on the basis of the best available information
which however, in CARE's opinion is not sufficient to arrive at a
fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of Jindal Agro Mills
Private Limited (JAMPL) continue to be constrained by the ongoing
delays in debt servicing, exposure to raw material price volatility
and foreign currency fluctuation risk, and highly
fragmented and competitive nature of the industry.
Detailed description of the key rating drivers
At the time of last rating on November 22, 2018, the following were
the rating weaknesses (updated for the information available from
Registrar of Companies):
Key Rating Weaknesses
* Ongoing delays in debt servicing: The company's bank accounts
have been classified as a Non Performing Asset.
* Exposure to raw material price volatility and foreign currency
fluctuations risk: The major raw materials required for the
operations of the company are non-ferrous metals prices of which
are highly fluctuating in nature. Limited ability to pass on
adverse fluctuations to the customer exposes the profitability
margins to volatility in raw material prices. Furthermore, while
the income is achieved from domestic sales, the company procures
its raw materials primarily via. imports. This exposes the
profitability margins to a foreign exchange fluctuation risk.
* Highly fragmented and competitive nature of the industry: The
non-ferrous metal industry is highly fragmented and competitive in
nature characterised by the presence of numerous players in India.
The trading of ferrous and non-ferrous raw materials industry is
highly fragmented and competitive with majority of the total number
of players being unorganized. This leads to low pricing power with
the entities engaged in the industry and a downward pressure on
profitability.
Incorporated in 1989, Jindal Agro Mills Private Limited (JAMPL) is
engaged in the trading and manufacturing & selling of nonferrous
metals at its single operating facility in Ludhiana, Punjab. In
FY17 (refers to the period April 1 to March 31), the company
derived majority of its income (about 65%) from the trading of
goods. Usha Impex (rated, 'CARE D; ISSUER NOT COOPERATING'), is a
group concern of JAMPL, which is engaged in the trading of
non-ferrous metals since 1998.
KALYAN VAIJINATHRAO: CARE Hikes Rating on INR2.96cr LT Loan to B
----------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Kalyan Vaijinathrao Kale (KVK), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 2.96 CARE B; Stable Revised
Facilities from CARE D
Detailed Rationale & Key Rating Drivers
The revision in the rating assigned to the long term bank
facilities of KVK takes into account the regularization of debt
servicing by the firm from December 14, 2019 and improvement in
total operating income, profit margins, and solvency position in
FY19 (Refers to the period from April 1 to March 31).
The rating, however, continues to remain constrained by its modest
scale of operations with moderate profitability margins, moderate
capital structure and debt coverage indicators, stretched liquidity
position and stabilization risk associated with the debt funded
expansion project undertaken. The rating is further constrained due
to susceptibility of margins to risk associated with price
volatility of raw material and its procurement in addition to
seasonal nature of the dairy industry, its presence in highly
fragmented industry and constitution of entity as a proprietorship
firm limiting financial flexibility in times of stress.
The rating however derive strength from the experience of promoters
albeit limited in milk processing industry and stable outlook of
the dairy industry.
Key rating sensitivities
Positive factors
* Increase in total operating income with resultant increase in PAT
and cash accruals on a sustained basis
* Improvement in the liquidity position by reduction in inventory
period on a sustained basis
Negative factors
* Any major debt funded capex, increased reliance on external
working capital borrowings or any withdrawal of capital resulting
in deterioration of capital structure
* Any environment and epidemic-related factors in the milk
procuring region of the firm having a significant impact on the
firm's operations for a long term.
* Any further elongation of its working capital cycle affecting its
cash flow from operations
Detailed description of the key rating drivers
Key Rating Weaknesses
* Modest scale of operations along with moderate profitability
margins: The total operating income (TOI) of the firm improved
with a y-o-y growth rate of 57.56% and stood at INR3.23 crore in
FY19 as compared to INR 2.05 crore in FY19 on account of increase
in sale of milk and stabilization of operations. Further, the total
capital employed was at INR6.99 crore as on March 31, 2019. The
small size restricts the financial flexibility of the entity in
times of stress and deprives it from scale benefits. Furthermore,
the firm has booked the revenue of INR3.70crore in 11MFY20
(Unaudited: refers to period from April 1 to February 29). Further,
the PBILDT margin improved and stood at 28.56% in FY19 on account
of increase in litres of milk sold during the year. PAT margin also
moved in same tandem and improved to 9.44% in FY19 on account of
higher increase in PBILDT level vis-à-vis capital charges.
* Moderate capital structure and debt coverage indicators: The
capital structure of the firm improved and stood moderate as marked
by an overall gearing of 1.06x as on March 31, 2019 (vis-à-vis
4.04x as on March 31, 2018) on account of scheduled payment of
loans. With moderate gearing levels and increased cash accruals,
the debt coverage indicators improved and stood moderate during the
year.
* Project stabilization risk: In 2019, KVK expanded its dairy farm
by increasing its installed capacity by 10,000 LPD (litres of milk
per day). The firm has completed the project and started in the
scheduled time lines i.e. April 2019. However, considering the
initial stage of operations, the firm will face teething problems
and will be further exposed to the stabilization risk.
* Susceptibility of margins to risks associated with raw milk
procurement, price volatility and seasonality associated: KVK
utilize milk from current livestock of approx. 225 cows (producing
approx. 3000 liters of milk daily). Furthermore, supply of milk and
prices is exposed to external risks like cattle diseases,
seasonality and others. Since, raw milk constitutes a very high
proportion of total sales any fluctuation in the procurement prices
are likely to impact the bottom-line of the firm. The dairy
industry is characterized by the short supply of milk during peak
of summers.
* Presence in a highly fragmented: KVK is present in a
highly-fragmented milk processing industry and faces competition in
the dairy segment from other established brands in the organized
market. The competition gets fiercer with presence of unorganized
players leading to pricing pressures. Intense competition limits
the pricing abilities of the players in the industry.
* Constitution as a proprietorship firm limiting financial
flexibility: KVK, being a proprietorship concern, is closely held
and is subject to limited disclosure norms. Further, owing to the
constitution of the entity, it is exposed to the risk of withdrawal
of capital as well as long-term existence of business operations
under the entity.
Key Ratings Strengths
* Experienced promoters albeit limited in milk processing industry:
KVK is promoted by Dr.Kalyan V Kale. He practiced medicine for
approximately 7 years. After which he completely focused his
attention to agriculture. The firm is likely to benefit from the
experience of promoters in running business. However, the promoters
have limited experience in milk processing industry and hence, the
firm might face project stabilization risk.
* Growing demand for milk and milk products: With growing
population and increasing purchasing power of the average consumer,
demand for milk and milk products is expected to continue growing
in the future. The future opportunities for the Indian dairy
industry are high in the exports market as well on account of
increased demand of Skimmed Milk Powder (SMP) in China and
South-East Asian countries and reduced supply of milk products from
New Zealand and China.
Liquidity Indicators: Stretched
Liquidity is marked by tightly matched accruals to repayment
obligations and modest cash balance of INR 0.17 crore as on March
31, 2019. The operations of the firm are characterized by gross
current asset of 89 days in FY19 with funds mainly blocked in
inventory. Further, the cash credit limit of the firm is utilized
on the higher side during last 12 months ended February 29, 2020.
Established in 2016, Kalyan Viajinathrao Kale (KVK) is an
Aurangabad (Maharashtra) based firm promoted by Mr. Kalyan
Vaijinathrao Kale. The firm is engaged in sale of milk with an
installed capacity of processing 10,000 litres of milk per day
(LPD). The dairy farm of the firm is located at Aurangabad
District, Maharashtra.
KALYANPUR CEMENTS: Ind-Ra Keeps C Issuer Rating in Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Kalyanpur
Cements Limited's (KCL) Long-Term Issuer Rating of 'IND C (ISSUER
NOT COOPERATING)' in the non-cooperating category and has
simultaneously withdrawn it.
The instrument-wise rating action is:
-- INR794.6 mil. Zero-coupon NCDs ISIN INE991E07037 issued on
November 28, 2008, due on June 30, 2019, maintained in non-
cooperating category and withdrawn.
KEY RATING DRIVERS
The ratings have been maintained in the non-cooperating category
because the issuer did not participate in the rating exercise
despite continuous requests and follow-ups by Ind-Ra.
The ratings have been withdrawn as KCL has been acquired by Dalmia
Cement Bharat Limited, as per the resolution plan approved by the
National Company Law Tribunal on January 31, 2018. Thus, it has
ceased to exist as a legal entity. Ind Ra will no longer provide
analytical and rating coverage for KCL.
COMPANY PROFILE
KCL commenced cement manufacturing in 1946. It has a total
installed capacity of 1 metric ton per annum in Banjari, Bihar.
MAA GANGA RICE: CARE Lowers Rating on INR4.80cr LT Loan to 'C'
--------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of Maa
Ganga Rice Mill (MGRM), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 4.80 CARE C; Issuer not cooperating;
Facilities Revised from CARE B+; Stable,
Issuer not cooperating on the
basis of best available
information
Short-term Bank 0.32 CARE A4; Issuer not cooperating;
Facilities based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from Maa Ganga Rice Mill to
monitor the ratings vide e-mail communications/letters dated April
6, 2020, April 8, 2020, April 9, 2020 and numerous phone calls.
However, despite CARE's repeated requests, the entity has not
provided the requisite information for monitoring the ratings. In
line with the extant SEBI guidelines, CARE has reviewed the ratings
on the basis of the publicly available information which, however,
in CARE's opinion is not sufficient to arrive at a fair rating. The
ratings of entity's bank facilities will now be denoted as CARE C;
Stable/CARE A4; ISSUER NOT COOPERATING. Further, the banker could
not be contacted.
Users of these rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The ratings take into account its constitution as a proprietorship
entity, seasonal nature of availability of paddy resulting in
working capital intensity and exposure to vagaries of nature,
fragmented and competitive nature of industry. However, the ratings
continue to derive strength from its long track record and
experienced proprietor and proximity to raw material sources.
Detailed Rationale & Key Rating Drivers
At the time of last rating in February 18, 2019 the following were
the rating strengths and weaknesses:
Key Rating Weaknesses
* Constitution as a proprietorship entity: MGRM, being a
proprietorship entity, is exposed to inherent risk of capital being
withdrawn at time of personal contingency and risk of dissolution
on account of poor succession planning. Moreover, proprietorship
entity has restricted access to external borrowing as credit
worthiness of proprietor would be the key factors affecting credit
decision for the lenders.
* Seasonal nature of availability of paddy resulting in working
capital intensity and exposure to vagaries of nature: Rice milling
is a working capital intensive business, as the rice millers have
to stock paddy by the end of each season till the next season since
the price and quality of paddy is better during the harvesting
season. Further, while paddy is sourced generally on cash payment,
the millers are required to extend credit period to their
customers. Also, paddy cultivation is highly dependent on monsoons,
thus exposing the fate of the entity's operation to vagaries of
nature.
* Fragmented and competitive nature of industry: MGRM's plant is
located in Burdwan district, which is one of the hubs for
paddy/rice cultivating region of West Bengal. Owing to the
advantage of close proximity to raw material sources, more than 350
units are engaged in milling and processing of rice in the region.
This has resulted in intense competition which is also fuelled by
low entry barriers. Given that the processing activity does not
involve much of technical expertise or high investment, the entry
barriers are low.
Key Rating Strengths
* Long track record and experienced proprietor: MGRM has been
engaged in rice milling business since 1996. Shri Rajendra Prasad
Agarwala, having an experience of more than three decades in same
line of business (by virtue of working in a partnership firm
engaged in rice milling before), looks after the overall day-to-day
affairs of the business since inception. He is adequately supported
by his son, Shri Rahul Agarwala having experience of around two
decades) and a team of experienced personnel.
* Proximity to raw material sources: MGRM's plant is located in
Burdwan District, West Bengal which is in the midst of paddy
growing region. The entire raw material requirement is met locally
from the farmers (or local agents) which helps the entity to save
substantial amount of transportation cost and also procure raw
materials at effective price.
Maa Ganga Rice Mill (MGRM) was set up as a partnership firm in the
year 1996 by Shri Rajendra Prosad Agarwala and his brother Shri
Tarak Nath Agarwala of Burdwan, West Bengal. Later on in 2000, it
has been converted into proprietorship entity in the name of
Rajendra Prasad Agarwala. The entity is engaged in the processing
and milling of rice. The milling unit of the entity is located at
Burdwan, West Bengal with processing capacity of 18,000 Metric
Tonne Per Annum (MTPA). MGRM procures paddy from farmers & local
agents and sells its products through the wholesalers and
distributors in the state of West Bengal.
MODERN ENGINEERING: CARE Lowers Rating on INR15cr LT Loan to C
--------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Modern Engineering Enterprise (MEW), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 15.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Revised from
CARE B+; Stable; Issuer Not
Cooperating; based on best
available information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from MEW to monitor the rating
vide e-mail communications/letters dated April 6, 2020, April 8,
2020, April 9, 2020 and numerous phone calls. However, despite
CARE's repeated requests, the company has not provided the
requisite information for monitoring the rating. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the publicly available information which, however, in CARE's
opinion is not sufficient to arrive at a fair rating. The rating of
MEW's bank facilities will now be denoted as CARE C; Outlook:
Stable; ISSUER NOT COOPERATING. Further, the banker could not be
contacted.
Users of these rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The rating takes into account as constitution as a proprietorship
entity, risk associated with participating in tenders and intense
competition in the industry, working capital intensive nature of
business and volatility associated with fluctuations in input
prices. The rating, however, continues to draw comfort from its
experienced management & long track record of operation.
Detailed Rationale & Key Rating Drivers
At the time of last rating in February 18, 2019 the following were
the rating strengths and weaknesses:
Key Rating Weaknesses
* Constitution as a proprietorship entity: Modern Engineering
Enterprise, being a proprietorship entity, is exposed to inherent
risk of the proprietor's capital being withdrawn at time of
personal contingency and entity being dissolved upon the
death/insolvency of the proprietor. Furthermore, proprietorship
entities have restricted access to external borrowing as credit
worthiness of proprietor would be the key factors affecting credit
decision for the lenders.
* Risk associated with participating in tenders and intense
competition in the industry: The entity has to bid for the
contracts based on tenders opened by the various governments and
public sector units. Upon successful technical evaluation of
various bidders, the lowest bid is awarded the contract. The entity
receives projects which majorly are of a short to medium tenure
(i.e. to be completed within maximum period of one to two years).
Furthermore, orders are generally tender driven floated by
government units indicating a risk of non-receipt of contract in
a competitive industry. The outlook of construction sector appears
challenging in view of slow execution of the existing order book in
view of hindrances related to land acquisition, obtaining requisite
clearances, labour shortage and liquidity issues with the clients,
etc. Additionally, the sector is plagued with elongated working
capital cycle leading to increase in debt level of construction
companies.
* Working capital intensive nature of business: The operations of
the entity remained working capital intensive as the entity
executes orders mainly for public sector units and government
departments. Due to its working capital intensive nature of
operations, the entity stretches its payments to its suppliers.
* Volatility associated with fluctuations in input prices: The
major input materials for the entity are cement, bitumen, steel
structure, angles etc. the prices of which are volatile. Further
the orders executed by the entity does not contain price escalation
clause. This apart, any increase in labour prices will also impact
its profitability being present in a highly labour intensive
industry.
Key Rating Strengths
* Experienced management & long track record of operations: Modern
Engineering Enterprise started its business from 1995 and thus has
satisfactory track record of operations. It is a professionally
managed Class 'A' and 'A1' entity managed by Smt. Khetoli Yepthomi
(Proprietor) who has a long experience in similar line of business.
They are ably supported by other engineers and professionals who
have long experience in the similar industry. Smt. Khetoli Yepthomi
(Proprietor) along with the team of experienced professionals looks
after the day to day activities of business.
Modern Engineering Enterprise was established in 1995 by Smt.
Khetoli Yepthomi with an objective to enter into undertaking
infrastructure and civil construction business. Since its
inception, the entity has been engaged in civil construction
business in the segment like roads, bridges and building works. The
entity is registered and enlisted by various Government Department
as PWD (Nagaland) class 'A', ministry of Telecom class 'A1' and
BSNL class 'A'. Class 'A' and class 'A1' contractor can bid for all
types and higher value of contracts of Public Works Department
(PWD) in Nagaland. The registered address of the entity is located
at H/ No. 129, Circular Road, Middle point, Dimapur, Nagaland.
NARSINGH SINGH: CARE Lowers Rating on INR3cr LT Loan to 'C'
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Narsingh Singh (NS), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 3.00 CARE C; Issuer not cooperating;
Facilities Revised from CARE B+; Stable,
Issuer not cooperating on the
basis of best available
information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from NS to monitor the rating
vide e-mail communications/letters dated April 6, 2020, April 8,
2020, April 9, 2020 and numerous phone calls. However, despite
CARE's repeated requests, the entity has not provided the requisite
information for monitoring the rating. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the
publicly available information which however, in CARE's opinion is
not sufficient to arrive at a fair rating. The rating on NS's bank
facilities will now be denoted as CARE C; Outlook: Stable/CARE A4;
ISSUER NOT COOPERATING. Further, the banker could not be
contacted.
Users of these rating (including investors, lenders and the public
at large) are hence requested to exercise caution while
using the above rating.
The ratings take into account as Constitution as a proprietorship
entity, small size of operations with moderate profitability
margin, risk associated with tender driven business, intense
competition in the industry, working capital intensive nature of
business, volatility associated with fluctuation in input prices.
The ratings, however, continue to draw comfort from its experienced
management and satisfactory track record of operation.
Detailed Rationale & Key Rating Drivers
At the time of last rating in February 25, 2019 the following were
the rating strengths and weaknesses:
Key Rating Weaknesses
* Constitution as a proprietorship entity: Narsingh Singh, being a
proprietorship entity, is exposed to inherent risk of the
proprietor's capital being withdrawn at time of personal
contingency and entity being dissolved upon the death/insolvency of
the proprietor. Furthermore, proprietorship entities have
restricted access to external borrowing as credit worthiness of
proprietor would be the key factors affecting credit decision for
the lenders.
* Risk associated with participating in tenders and intense
competition in the industry: The entity has to bid for the
contracts based on tenders opened by the various governments and
public sector units. Upon successful technical evaluation of
various bidders, the lowest bid is awarded the contract. The entity
receives projects which majorly are of a short to medium tenure
(i.e. to be completed within maximum period of one to two years).
Furthermore, orders are generally tender driven floated by
government units indicating a risk of non-receipt of contract in a
competitive industry. The outlook of construction sector appears
challenging in view of slow execution of the existing order book in
view of hindrances related to land acquisition, obtaining requisite
clearances, labour shortage and liquidity issues with the clients,
etc. Additionally, the sector is plagued with elongated working
capital cycle leading to increase in debt level of construction
companies.
* Working capital intensive nature of business: The operations of
the entity remained working capital intensive as the entity
executes orders mainly for public sector units and government
departments. Due to its working capital intensive nature of
operations, the entity stretches its payments to its suppliers.
* Volatility associated with fluctuations in input prices: The
major input materials for the entity are sand, cement, bricks,
bitumen, rods etc. the prices of which are volatile. Further the
orders executed by the entity contain price escalation clause on
all of the order and thus the entity mitigates price volatility of
the input materials to some extent. This apart, any increase in
labour prices will also impact its profitability being present in a
highly labour intensive industry.
Key Rating Strengths
* Experienced management & satisfactory track record of operations:
Narsingh Singh started its business from April 2005 and thus has
satisfactory track record of operations. It is a professionally
managed Class 'A' entity managed by Mr. Narsingh Singh (Proprietor)
who has a long experience in similar line of business. They are
ably supported by other engineers and professionals who have long
experience in the similar industry.
Narsingh Singh was established in April 2005 by Mr. Narsingh Singh
with an objective to enter into infrastructure and civil
construction business. Since its inception, the entity has been
engaged in civil construction business in the segment like roads
and bridges projects. Further, the entity is also classified as
class 'A' contractor in civil under the department of RWD
Government of Bihar. Class 'A' contractor can bid for all types and
higher value of contracts of Rural Works Department (RWD) in
Bihar.
P.G. ICE: CARE Lowers Rating on INR7.19cr LT Loan to 'D'
--------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of P.G.
Ice and Cold Storage Private Limited (PGICS), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 7.19 CARE D Revised from CARE B;
Facilities Stable
Detailed Rationale & Key Rating Drivers
The revision in the rating of PGICS takes into consideration delay
in servicing of its debt obligations during February.
Rating Sensitivities
Positive Factors
* Improvement in the liquidity position of the company as reflected
by the timely repayment of its debt obligations.
Detailed description of the key rating drivers
Key Rating Weaknesses
* Delays in debt servicing: There has been delay in the debt
servicing during the period of Feb'20 due to the tight liquidity
position. The company has its annual term loan instalment due on
February 29, 2020, which is not yet paid in full till end of
March'20. Since, annual term loan instalment is due on February 29,
2020, thus, the company is not entitled to avail the benefits of
moratorium period for term loan as it is enforced from March 1,
2020 and the same has been confirmed from the banker.
Liquidity: Poor
PGICS has poor liquidity position marked by lower accruals when
compared to repayment obligations, fully utilized working capital
limits during the past 12 months ending March, 2020. This
constrained the ability of the company to repay its debt
obligations on a timely basis.
Uttar Pradesh based P.G. Ice and Cold Storage Private Limited
(PGICS) (CIN No. U15435UP2015PTC070434) was incorporated in April,
2015 and started its commercial operations from February, 2017. The
company is currently managed by Mr. Mohan Datt & Mr. Ram Gopal. The
company is engaged in renting of its cold storage facility for
potatoes to the local farmers in Uttar Pradesh with multi chambers
having storage capacity of 136620.02 quintals as on March 31,
2019.
The company has one group associate namely; Lodhi Rajpoot Ice and
Cold Storage Private Limited (incorporated in June, 1996); engaged
in same line of business.
PREMIER PLASTICS: CARE Lowers Ratings on INR13cr Bank Loans to C
----------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Premier Plastics (PP), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 12.10 CARE C; Issuer not cooperating;
Facilities Revised from CARE B; Issuer not
cooperating on the basis of
best available information
Short-term Bank 0.90 CARE A4; Issuer not
Facilities cooperating; based on best
available information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated September 29, 2017, placed
the rating(s) of PP under the 'issuer non-cooperating' category as
PP had failed to provide information for monitoring of the rating.
PP continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated March 20, 2020, March 23, 2020. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the best available information which however, in CARE's opinion
is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The rating has been revised by taking into account non-availability
of requisite information and no due-diligence conducted due to
non-cooperation by Premier Plastics with CARE'S efforts to
undertake a review of the rating outstanding. CARE views
information avaibility risk as a key factor in its assessment of
credit risk. The rating takes into account small and fluctuating
scale of operation and elongated collection period. The rating
further continues to remain constrained by susceptibility of
margins to volatile raw material prices and high competition from
organized and unorganized. The rating, however, continues to take
comfort from the experience proprietor and moderate profitability
margin and capital structure.
Detailed description of the key rating drivers
At the time of last rating on January 4, 2019, the following were
the rating strengths and weaknesses:
Key Rating Weaknesses
* Small and fluctuating scale of operations: Despite being
operational for nearly two decades, the scale of operations of the
firm has remained small and fluctuating marked by total operating
income and gross cash accruals of INR9.78 crore and INR1.07 crore
respectively during FY15 (FY refers to the period April 1 to March
31). The small scale limits the firm's financial flexibility in
times of stress and deprives it of scale benefits.
* Elongated collection and inventory holding period: The average
collection period and inventory holding period stood elongated for
FY15. Further, the firm maintains inventory in form of raw material
for smooth flow of production. Being a manufacturers, the firm has
to maintain the finished goods inventory of different shapes and
sizes to meet the immediate demand of its customers. The same
resulted into high an average inventory holding days of 163 days
for FY15. Being present in a highly competitive industry, the
company has liberal credit policy resulting in high average
collection period of 134 days for FY15. The firm has able to
negotiate better on credit terms resulting into payable period
stood at 264 days for FY15.
* Industry risk and susceptibility of margins to the volatility in
the raw material prices: The main raw materials for PP are PVC
(Polyvinyl Chloride), leather, etc., the prices of which are linked
with crude oil prices and are very volatile. PP's profitability
depends to a large extent on the movement in raw material prices.
With intense competition in the footwear segment mainly on account
of significant presence of the unorganized sector and availability
of cheap imported products, it is not always possible to pass on
the entire increase in raw material prices to the customers, which
put pressure on the company's profitability. Further, footwear
sector is highly dependent on fashion trends, consumer spending
habits as well as economic cycles. Therefore, the companies need to
manage their inventories according to fashion and changing trends.
At times, a fashion is short-lived, thus there is a risk of
inventory getting obsolete and does not meet the taste and
preferences of the customers leading to losses.
* Competition from organized and unorganized players: There are
various unorganized players based domestically and internationally
operating in the industry which provides further competition on
scale and profitability to small companies like PP.
Key Rating Strengths
* Experienced proprietor: PP is being managed by Mr. Sudhir Gupta
who is a graduate by qualification and has overall experience of
nearly two decades in the industry through his association with
this entity and an associate concern "Royal Polymers". He looks
after the overall operations of the firm
* Moderate profitability margins and capital structure: The
profitability margins of the firm stood moderate for the past three
financial years (FY13-FY15). Debt equity and overall gearing stood
at 0.55x and 0.83x respectively as on March 31, 2015 as against
2.84x and 4.20x as on March 31, 2014 wherein the improvement in
debt equity was on account of repayment of term loan coupled with
higher partner's capital base owing to accretion of profits along
with infusion of capital by the proprietor. Also, lower utilization
of working capital limits as on the last balance sheet date aided
into improvement in overall gearing makes the capital structure
comfortable. However, during FY16, the capital structure is
anticipated to be leveraged on account of debt funded capex.
Agra based, Premier Plastics (PP), is a proprietorship concern
established in 1997 by Mr Sudhir Gupta. The firm is engaged in
manufacturing of TPR soles, leather soles, rubber sheet sole and
heels. The key raw material used in manufacturing are TPR compound,
PVC, leather and thermo plastic rubber which is procured
domestically from the manufacturers and distributors located in
Delhi-NCR, Jammu, Silvassa, Agra etc. The firm mainly sells its
products to manufacturers of leather and leather products located
in Agra, Chennai, and Noida etc. The products mainly show sole
manufactured by the firm is sold under the brand "Bugatti". The
firm has an associate concern i.e. Royal Polymers; also engaged in
manufacturing of sole.
PRERNA STRIPS: CARE Cuts Rating on INR10.65cr LT Loan to 'C'
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Prerna Strips (PST), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 10.65 CARE C; Issuer not cooperating;
Facilities Revised from CARE BB-; Stable,
Issuer not cooperating on the
basis of best available
information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated December 7, 2018, placed the
rating of PST under the 'issuer non-cooperating' category as Prerna
Strips had failed to provide information for monitoring of the
rating. PST continues to be non-cooperative despite repeated
requests for submission of information through e-mails, phone calls
and a letter/email dated April 7, 2020, April 6, 2020, April 3,
2020 and April 2, 2020. In line with the extant SEBI guidelines,
CARE has reviewed the rating on the basis of the best available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Detailed description of the key rating drivers
The long term rating of the firm has been revised on account of
proprietorship nature of constitution, susceptibility of margins to
fluctuation in raw material prices and fragmented and competitive
industry.
Key Rating Weaknesses
* Presence in a highly fragmented and competitive industry: PST is
exposed to high fragmentation in the steel industry, which has
numerous players at the bottom of the value chain due to low entry
barriers and technology requirements. Furthermore, the low lead
time for setting up a new plant and the lack of product
differentiation reduce the entry barriers for new entrants
resulting in overcapacity in the industry.
* Susceptibility of margins to fluctuations in raw material prices:
The main raw material of the firm is hot rolled steel coil which
constituted ~80% of the total cost of sales in FY16 (Provisional),
thereby making profitability sensitive to raw material prices. The
prices of steel are driven by the international prices which had
been volatile in past. Thus, any adverse change in the prices of
the raw material may affect the profitability margins of the firm.
* Proprietorship nature of its constitution: PST's constitution as
a proprietorship firm has the inherent risk of possibility of
withdrawal of the proprietor's capital at the time of personal
contingency and firm being dissolved upon the
death/retirement/insolvency of the proprietor.
PST was established as a proprietorship firm in 2011. PST is
engaged in the manufacturing of steel products at its manufacturing
facility located in Derabassi, Punjab. The product line of the firm
mainly includes strips and pipes which find usage in the auto
mobile and furniture industry. The process of the firm is ISO
9001:2001 certified for quality and manufacturing process.
PRIME URBAN: ICRA Assigns 'B-/A4' Ratings to INR21cr Loan
---------------------------------------------------------
ICRA has assigned rating to the bank facilities of Prime Urban
Development India Ltd (PUDIL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term and 21.00 [ICRA]B-(Stable)/[ICRA]A4;
short-term fund Assigned
based limits
Rationale
The assigned ratings of PUDIL is constrained by the weak financial
profile of the company, which is characterised by continuing losses
and sharp decline in turnover in 9M FY20201. The rating also
considers its leveraged capital structure with a gearing of 2.20
times as on March 31, 2019. The profitability is exposed to
volatility in cotton yarn prices and intense competition in the
textile sector. ICRA also notes that the company's real estate
business is exposed to execution and sales risks along with
geographical concentration risks.
The ratings, however, derive strength from the extensive experience
of promoters in the textile business. The Stable outlook on the
long-term rating of [ICRA]B- reflects ICRA's opinion that PUDIL
will continue to benefit from the experience of its promoters in
the textile and real estate sectors.
Key rating drivers and their description
Credit strengths
* Extensive track record of company in the cotton trading business:
PUDIL was incorporated in 1936, and it has an extensive track
record of around eight decades in the textile business, in
manufacturing and trading cotton yarn. In 2008, its management
closed the yarn manufacturing unit and ventured into real estate
business. However, the trading of cotton yarn continued. The
company is managed by the members of the Patodia family.
Credit challenges
* Financial profile characterised by continuing losses and sharp
decline in turnover in 9M FY2020: The company has registered
losses at the net level at INR10.48 crore and INR2.60 crore in
FY2018 and FY2019 respectively, due to high procurement cost of raw
materials and high interest cost. The losses continued in the
current fiscal, with the company recording net loss of INR4.89
crore in the nine-month period ended December 31, 2019. Also, there
was a sharp year-onyear decline of 53% in operating income this
fiscal, with PUDIL recording an OI of INR53.28 crore during the
nine-month period ended December 31, 2019, over an operating income
of INR114.31 crore for the corresponding period in the
previous fiscal.
* Leveraged capital structure with a gearing of 2.20 times as on
March 31, 2019: The net worth of PUDIL eroded in the last two
years due to net losses. The net worth was reported at INR14.46
crore as on March 31, 2019, as compared to INR31.92 crore as on
March 31, 2017. Along with high debt (mainly consisting of interest
bearing unsecured loans from corporates and related parties), this
deteriorated the capital structure, with the gearing at 2.24 times
as on March 31, 2019, which reduced marginally to 2.20 times as on
December 31, 2019 (due to reduction in debt).
* Profitability exposed to volatility in cotton yarn prices and
foreign exchange movements; intense competition limits pricing
flexibility: PUDIL remains exposed to forex fluctuations and
volatility in yarn price movements since its entire trading
revenues are derived from export sales. However, the risk is
mitigated to an extent by the order backed procurement mechanism
and the working capital borrowings through foreign currency-based
packing credit facilities. The fragmented industry structure
exposes the company to competition from other domestic and
international yarn manufacturers/traders and restricts its pricing
flexibility, which keeps margins under pressure.
* Geographic concentration risk with respect to real estate
projects under execution: PUDIL currently has two projects under
development. Both the projects are in Tamil Nadu: a land
development project at Kotagiri (Nilgiris district) and a
residential project, Prime Crest, in Coimbatore. Thus, the company
remains exposed to geographical concentration risk due to the
location of its projects.
* Real estate business exposed to execution and sales risks: Given
that 54% of the total cost is yet to be incurred for Prime Crest,
project execution risks remain high for the company. Furthermore,
out of the total 24 plots, three have so far been booked for sales,
while out of the 20 apartments in Prime Crest, the company has
received bookings for 10 units. Thus, the company remains exposed
to sales risk towards the balance unsold stock.
Liquidity position: Poor
The liquidity profile of the company has remained poor due
consistent net losses incurred by the company over the past three
years and significant amount of loans and investments in
associates/subsidiaries, which further restricts financial
flexibility. The average utilisation of the working capital limits
stood at 56% during the 15-month period ended January 2020. The
entity had long-term loans of INR0.69 core on its books as on March
31, 2019, which is to be repaid by FY2022. PUDIL has no major
capacity expansion plans in the near-to-medium-term.
Rating sensitivities
Positive triggers – An upward movement in rating could happen if
there is turnaround of operations resulting in increased turnover
and profitability on a sustained basis along with improvement in
liquidity.
Negative triggers – Negative pressure on the rating could arise
if there is further weakening of liquidity resulting in delay in
debt servicing, or any inadequate infusion of promoter's fund to
support the business. Any delay in sale of the real estate units or
timely collection of receivables may also warrant a rating
downgrade.
Incorporated in 1936, Prime Urban Development India Limited was
involved in cotton yarn manufacturing and trading. From FY2008, the
company ventured into the real estate sector and stopped
manufacturing cotton yarn. However, it is still involved in trading
of cotton yarn and exports to various markets like Bangladesh,
China, Pakistan and Egypt. In the real estate segment, PUDIL owns
land parcels in Kotagiri, which are developed and sold. Also, it
has taken up a residential project at Coimbatore for the
construction and sale of 20 apartments. Both the projects were
executed by Special Purpose Vehicles (SPVs). The company has
completed a housing project of 386 apartments and an independent
luxury villa project in Tamil Nadu. PUDIL's registered office is in
Tirupur (Tamil Nadu), while it has a marketing office in Mumbai.
The company is listed on the Bombay Stock Exchange (BSE).
PUDIL recorded a net loss of INR2.60 crore on an operating income
(OI) of INR151.89 crore in FY2019 and a net loss of INR4.89 crore
on an OI of INR53.28 crore for the nine-month period ended December
31, 2019 (provisional numbers).
PURNAM: ICRA Keeps B on INR13.55cr Bank Loan in Not Cooperating
---------------------------------------------------------------
ICRA said rating for the INR13.55 crore bank facilities of Purnam
(PM) continue to remain under 'Issuer Not Cooperating' category.
The rating is denoted as "[ICRA]B (Stable); ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based 12.75 [ICRA]B (Stable) ISSUER NOT
Limit-Term COOPERATING; Rating continues
Loan to remain under 'Issuer Not
Cooperating' category
Fund Based 0.80 [ICRA]B (Stable) ISSUER NOT
Limit–Cash COOPERATING; Rating continues
Credit to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
Established in August 2011, Purnam (PM), a part of the
Kolkata-based "Aparna" group, acquired an existing nursing home and
after significant renovation commenced operations in January, 2013.
PM was promoted by four partners - Mr. K.D. Paul, Mr Arpan Paul,
Mrs Manjusri Paul and Mrs Devika Paul. PM currently runs a 57
bedded multi-specialty nursing home, located at a prominent place
in south Kolkata. The nursing home provides treatment in various
departments viz. general medicine, orthopaedic, paediatric,
neurology, gastroenterology, gynaecology, oncology, cosmetic
surgery, cardiology, nephrology among others. In September 2015,
the firm has also opened a polyclinic cum diagnostic centre for
various departments viz. ENT, Dental, and Dermatology.
RAJ SNEH AUTO: CARE Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Raj Sneh
Auto India Pvt Ltd Ltd (RSAIPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 27.27 CARE D; Issuer not cooperating;
Facilities Based on best available
Information
Long-term/Short 34.10 CARE D/CARE D; Issuer not
term Bank cooperating; Based on best
Facilities available information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from RSAIPL to monitor the
ratings vide e-mail communications/letters dated March 31, 2020,
April 1, 2020, April 8, 2020, April 10, 2020, April 13, 2020 and
numerous phone calls. However, despite CARE's repeated requests,
the company has not provided the requisite information for
monitoring the ratings. In line with the extant SEBI guidelines,
CARE has reviewed the rating on the basis of the best available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating. The ratings on Raj Sneh Auto India Pvt
Ltd's bank facilities will now be denoted as CARE D; ISSUER NOT
COOPERATING/CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
At the time of last rating on December 7, 2018, the ongoing delays
in debt repayments were taken into account.
Raj-Sneh Auto India Private Limited (RSAIPL) promoted by Mr Ashok
Kumar Jain and Mr Manoj Kumar Gupta who have an experience of more
than two decade in auto dealership business was incorporated in
2005 and is an authorized dealer of Maruti Suzuki India Limited
(MSIL) vehicles. It is engaged in the sale of new cars, servicing
of vehicles, sale of spare parts, and sale and purchase of
pre-owned cars. RSAIPL operates four showrooms (all 3S), six
service and one True Value outlets in and around Meerut.
RAM INDUSTRIES: CARE Lowers Rating on INR15cr LT Loan to C
----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of Shri
Ram Industries (SRI), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 15.00 CARE C; Issuer not cooperating;
Facilities Revised from CARE B-; Issuer
not cooperating on the basis of
best available information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated September 20, 2017, placed
the rating of SRI under the 'issuer noncooperating' category as
Shri Ram Industries had failed to provide information for
monitoring of the rating. Shri Ram Industries continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and email dated March 20,
2020 and March 23, 2020. In line with the extant SEBI guidelines,
CARE has reviewed the rating on the basis of the best available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The rating has been revised by taking into account non-availability
of requisite information and no due-diligence conducted due to
non-cooperation by Shri Ram Industries with CARE'S efforts to
undertake a review of the rating outstanding. The rating remained
constrained mainly on account of small scale of operations, low
profitability margins, leveraged capital structure, weak debt
coverage indicators and highly fragmented industry leading to
intense competition. The ratings of the company draw comfort from
experienced promoters in trading and processing of rice and
moderate operating cycle.
Detailed description of the key rating drivers
At the time of last rating on January 04, 2019, the following were
the rating strengths and weaknesses:
Key Rating Weaknesses
* Small scale of operations with low partners' capital: The scale
of operations of SRI has stood small marked by total operating
income (TOI) of INR58.37 crore in FY15 (refers to the period
April 1 to March 31) with partners' capital of INR1.52 crore as on
March 31, 2015. The TOI has declined to INR42.19 crore in FY16
(based on provisional results). The small scale limits the firm's
financial flexibility in times of stress and deprives it of scale
benefits. Furthermore, in FY17, the firm has achieved total sales
of INR4.27 crore till June 30, 2016.
* Low profitability margins, leveraged capital structure and weak
coverage indicators: The profitability margin of the firm had
remained low for the past 3 financial years (FY13- FY15) due to low
value addition and highly fragmented nature of industry
characterized by intense competition. SRI has leveraged capital
structure as on past three balance sheet dates, i.e., March 31, '13
– '15 owing to high working capital bank borrowings coupled with
low net worth base. Further, Interest coverage and total debt to
GCA stood weak at 1.42x and 21.74x for FY15.
* Highly fragmented industry leading to intense competition:
Trading and processing of agro- products is an industry which is
highly fragmented and competitive in nature with a large
number of small and medium sized players having established brands
and marketing set ups. Presence of large number of entities in both
organised and unorganised sector with low entry barriers results in
intense competition in trading & processing of these products. The
same in turn limits the pricing flexibility.
Key Rating Strengths
* Experienced promoters in trading and processing of rice: Mr
Suresh Chand Singhal and Mr Amit Singhal are the partners SRI. Both
the partners are graduates by qualification. The partners of the
firm have an experience varying up to three decades in processing
and trading of agro products through their association with this
entity. They collectively look after the overall operations of the
firm.
* Moderate operating cycle: The firm allows an average credit
period of 5-10 days to its customers, resulting into an average
collection period of 7 days for FY15, whereas the firm purchases
traded goods and raw material mainly on cash or advance basis with
maximum credit period received of 10 days for FY15. The firm is
required to maintain adequate inventory in the form of finished
goods to meet the immediate demand of its customers, resulting into
an average inventory of 24 days for FY15.
Shri Ram Industries (SRI) was established as a partnership firm in
1983. The firm is currently being managed by the partners; Mr
Suresh Chand Singhal and Mr Amit Singhal sharing profit and loss
equally. SRI is engaged in trading and processing (milling) of
agriculture products such as paddy (rice), wheat, rice bran etc.
The manufacturing unit is located at Shahjahanpur, Uttar Pradesh
with a total installed capacity of 3 lakh quintals as on March 31,
2016. SRI procures raw material and traded goods such as wheat,
rice, paddy etc. from local farmers and registered dealers located
in U.P. and near regions. SRI sells its products in the states of
Punjab and Haryana through a network of commission agents and
brokers. The firm also exports to Middle East countries through
export brokers. M.C. Roller Flour Mills Private Limited is an
associate concern of SRI engaged in processing and trading of agro
products.
SAI INDUSTRIES: ICRA Lowers Ratings on INR8.40cr Loans to B+
------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Sri Sai
Industries (SSI), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 3.00 [ICRA]B+ (Stable); ISSUER NOT
Fund Based/CC COOPERATING; Rating downgraded
from [ICRA]BB- (Stable) and
continues to remain under
'Issuer Not Cooperating' category
Long Term- 5.40 [ICRA]B+ (Stable); ISSUER NOT
Fund Based/TL COOPERATING; Rating downgraded
from [ICRA]BB- (Stable) and
continues to remain under
'Issuer Not Cooperating' category
Rationale
The rating is downgraded because of lack of adequate information
regarding SSI performance and hence the uncertainty around its
credit risk. ICRA assesses whether the information available about
the entity is commensurate with its rating and reviews the same as
per its "Policy in respect of non-cooperation by the rated entity".
The lenders, investors and other market participants are thus
advised to exercise appropriate caution while using this rating as
the rating may not adequately reflect the credit risk profile of
the entity, despite the downgrade.
As part of its process and in accordance with its rating agreement
with Sri Sai Industries, ICRA has been trying to seek information
from the entity so as to monitor its performance, but despite
repeated requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated
November 1, 2016, ICRA's Rating Committee has taken a rating view
based on the best available information.
Incorporated in 1998, Sri Sai Industries (SSI) is primarily engaged
in manufacturing precision sheet metal enclosures that find
application in CNC machines and various electrical component
enclosures. It also manufacturers steel fabricated coffee vending
machines and the base frame for transformers. SSI has been promoted
by Mr. RV Subba Reddy, who holds prior experience in the mechanical
industry. The firm has three manufacturing units located in
proximity to the Peenya industrial area of Bangalore.
SEGNO CERAMICS: CARE Keeps D on INR33cr Loans in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Segno
Ceramics private Ltd. (SCPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 33.03 CARE D; Issuer not cooperating;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated December 21, 2018, placed
the ratings of SCPL under the 'issuer non-cooperating' category as
SCPL had not paid the surveillance fees for the rating exercise as
agreed to in its Rating Agreement. SCPL continues to be
non-cooperative despite repeated requests for submission of
information through emails, phone calls and a email dated April 7,
2020, April 8, 2020 and April 9, 2020. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the best
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while
using the above ratings.
Detailed description of the key rating drivers
Key Rating Weaknesses
* Delay in meeting the interest obligations on time: The company
has been delaying in meeting the debt obligations on time on
account of strain in the liquidity position.
Incorporated in 2011, Segno Ceramics Private Limited (SCPL) is
engaged in manufacturing and trading of ceramic vitrified tiles and
sanitary ware. The ceramic tiles produced are Nano finish using
single firing technology. The company started its commercial
operation from September 2013.The company is promoted by Mr N.
Narahari Prasad who has extensive experience with a proven track
record in the engineering industry. The company has wide dealer
network for marketing of its products in six states – Andhra
Pradesh, Telangana, Tamil Nadu, Karnataka, Odisha and Pondicherry.
The manufacturing plant is located in Prakasm District, Andhra
Pradesh. The unit has the certification of ISO 9001-2008 and
certification from Civil Aid Techno clinic Private Limited for its
quality of the products.
SHRIRAM EPC: CARE Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shriram EPC
Limited (SEPCL) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 548.71 CARE D; Issuer not cooperating;
Facilities Based on best available
Information
Short Term Bank 765.11 CARE D; Issuer not cooperating;
Facilities Based on best available
Information
Long-term/Short 48.00 CARE D/CARE D; Issuer not
term Bank cooperating; Based on best
Facilities available information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from SEPCL to monitor the ratings
vide e-mail communications dated January 14, 2020, January 28, 2020
and February 17, 2020. However, despite CARE's repeated requests,
the company has not provided the requisite information for
monitoring the ratings. In line with the extant SEBI guidelines,
CARE has reviewed the rating on the basis of the best available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating. Further, Shriram EPC Limited has not paid
the surveillance fees for the rating exercise as agreed to in its
Rating Agreement. The rating on Shriram EPC Limited bank facilities
will now be denoted as CARE D/CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
The ratings take into account the instances of delays in servicing
debt obligations.
Detailed description of the key rating drivers
At the time of last rating on April 5, 2019, the following were the
rating weaknesses. (Updated for the information available from
stock exchange)
Key Rating Weaknesses
* Delays in debt servicing with tight liquidity position: Being an
EPC contractor, the operations of Shriram EPC Limited (SEPCL) are
working capital intensive with the project cycle generally ranging
from six months to three years. The higher receivables position and
delays associated with projects have increased the pressure on the
cash flow position of the company compounded by the cash losses
incurred in the past three years ended March, 2017. This has
resulting in tight liquidity position of the company and instance
of delays in debt servicing. During FY19, the company registered
total operating income of INR813 crore and a PAT of INR29 crore.
SEPCL was incorporated in June 2000, after merging companies
engaged in similar businesses, consolidating their operations.
Initially, setup as an EPC contractor to carry out the construction
works of associate entities within the Shriram group, SEPCL has
been able to establish its presence in undertaking jobs for
external parties and government/quasi government entities. SEPCL
specializes in executing EPC contracts, providing integrated
solutions encompassing design, engineering, procurement,
construction and project management services. The company's
services are primarily spread across municipal services, process &
metallurgy, power and mineral processing segments. SEPCL is a part
of the Chennai-based Shriram group, which has varied business
interests.
SIMPLEX CASTINGS: Ind-Ra Lowers LongTerm Issuer Rating to 'D'
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Simplex Castings
Ltd's (SCL) 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 actions are:
-- INR500 mil. Fund-based limits (Long-term) downgraded with IND
D (ISSUER NOT COOPERATING) rating;
-- INR550 mil. Non-fund-based limits (Short-term) downgraded with
IND D (ISSUER NOT COOPERATING) rating; and
-- INR146.4 mil. Term loan (Long-term) due on April 2021
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 delays in debt servicing by the company,
according to the information released in the public domain by
another rating agency.
RATING SENSITIVITIES
Positive: Timely debt servicing for at least three consecutive
months would be positive for the ratings.
COMPANY PROFILE
SCL was established in 1970 and was reconstituted as a private
limited company in 1980. In 1993, SCL became a public limited
company and was listed on the Bombay Stock Exchange. The company
manufactures iron and steel casting products, which are used in
various industries such as railways, steel and defense, at its two
manufacturing units in Bhilai and Tedsara.
SKM BUILDCON: CARE Lowers Rating on INR5.75cr Loan to 'C'
---------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of SKM
Buildcon (SKM), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 5.75 CARE C; Issuer not cooperating;
Facilities Revised from CARE B+; Stable,
Issuer not cooperating on the
basis of best available
information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from SKM to monitor the rating
vide e-mail communications/letters dated April 6, 2020, April 8,
2020, April 9, 2020 and numerous phone calls. However, despite
CARE's repeated requests, the entity has not provided the requisite
information for monitoring the rating. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the
publicly available information which, however, in CARE's opinion is
not sufficient to arrive at a fair rating. The rating on SKM's bank
facilities will now be denoted as CARE C; Outlook: Stable;
ISSUER NOT COOPERATING. Further, the banker could not be
contacted.
Users of these rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The rating takes into account its partnership nature of
constitution, susceptibility of operating margin to volatility in
input prices, exposure to tender driven process risk and intense
competition within the industry owing to low entry barrier.
However, the rating continues to derive strengths by its
experienced partners with moderate track record of operations.
Detailed Rationale & Key Rating Drivers
At the time of last rating in February 22, 2019 the following were
the rating strengths and weaknesses:
Key Rating Weaknesses
* Partnership nature of constitution: SKMB, being a partnership
firm, is exposed to inherent risk of the partner's capital being
withdrawn at time of personal contingency and firm being dissolved
upon the death/retirement/insolvency of the partners. Moreover,
partnership firms have restricted access to external borrowing as
credit worthiness of partners would be the key factors affecting
credit decision for the lenders.
* Susceptibility of operating margin to volatility in input
material prices: The basic input materials for execution of
construction projects and works contracts are steel, stone chips,
bitumen and cement etc. The prices of which are highly volatile.
However, currently public works department contracts have price
escalation clause which mitigate price volatility risk to some
extent. Furthermore, the operating margin of the entity is exposed
to sudden change in the input material prices along with increase
in labour prices, being in labour intensive industry, which is
offset by the price escalation clause to some extent.
* Exposure to tender driven process risk and intense competition
within the industry owing to low entry barrier: The civil
construction space is highly competitive with many players
operating in the sector affecting the profitability of the
participants. Furthermore, the firm is largely dependent on
government authorities for orders and mainly procures its orders
through tender bidding and in a highly competitive scenario; risk
of non-receiving of contract in tender bidding is also high.
Key Rating Strengths
* Experienced partner with long track record of operation: SKM has
been in operation since 2008, accordingly has a moderate track
record of operation. Further, the entity is managed by Mr. Suresh
Kumar Mirghani having over one and a halfdecade of experience in
construction business.
M/s SKM Buildcon (SKM) was established in 2008 as a partnership
concern. M/s SKMB participates in the tender process of various
public works department contracts, government contracts and related
ancillary works. M/s SKMB has reputed client base primarily dealing
with public works department, government departments and clients
like Tarwani group and Fortune Recourse Private Limited
(Swarnbhumi). The day to day affairs of the firm are looked after
by Mr Suresh Kumar Mirghani with adequate support from the other
partner and a team of experienced personnel.
SPRAY ENGINEERING: ICRA Keeps 'D' Debt Ratings in Not Cooperating
-----------------------------------------------------------------
ICRA said rating for the INR43.77 crore bank facilities of Spray
Engineering Devices Limited continue to remain under 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA]D/[ICRA]D;
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based 25.96 [ICRA]D ISSUER NOT COOPERATING;
Rating continues to remain under
'Issuer Not Cooperating'
Category
Non-Fund Based 16.00 [ICRA]D ISSUER NOT COOPERATING;
Rating continues to remain under
'Issuer Not Cooperating'
Category
Unallocated 1.81 [ICRA]D/[ICRA]D ISSUER NOT
COOPERATING; Rating continues to
remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
SEDL was formed by the merger of two partnership firms- namely
Spray Engineering Devices and C&C Systems which came into effect
from December 1, 2004. The company is involved in the manufacturing
of equipment for sugar mills, mainly energy saving devices,
automation devices and condensers. The company's manufacturing
facilities are located at Baddi, Himachal Pradesh. The company is
promoted by Verma family and had received an investment of Rs 30
crore in the year 2006.
TARENDRA INFRASTRUCTURE: CARE Keeps 'D' Ratings in Not Cooperating
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Tarendra
Infrastructure Chennai Private Ltd. (TICPL) continues to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non-Convertible 30.00 CARE D; ISSUER NOT COOPERATING;
Debentures Based on best available
Tranche I Information
Non-Convertible 70.00 CARE D; ISSUER NOT COOPERATING;
Debentures Based on best available
Tranche II Information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from TICPL to monitor the ratings
vide e-mail communications dated January 17, 2020, January 28, 2020
and February 18, 2020 and letter dated March 20, 2020. However,
despite CARE's repeated requests, the company has not provided the
requisite information for monitoring the ratings. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the best available information which however, in CARE's opinion
is not sufficient to arrive at a fair rating. The rating on
Tarendra Infrastructure Chennai Private Ltd.'s
instruments will now be denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Detailed description of the key rating drivers
At the time of last rating on April 2, 2019 the following were the
rating weakness and strengths.
Key Rating Weaknesses
* Delay in interest payment for Tranche II: CARE notes that the
company has delayed to make payment towards interest which was due
on March 31, 2019. CARE also notes that the company is seeking for
an extension for making payment towards the same.
Key rating strengths
* Vast experience of promoters in real estate sector and
satisfactory track record: TVH group is in the business of real
estate development in Chennai since 1997 and the promoters have
long experience in the real estate development industry. The group
has been operational in Chennai since last 20 years and has also
forayed into Coimbatore market in 2008. The group has over 7.1
million sq. ft. of constructed residential and commercial space and
4.1 million sq. ft. of projects under construction. The group has
successfully completed over 30 projects in Chennai and Coimbatore.
* Moderate pace with regard to sale of plots: Out of the total
saleable area of around 6.11 lakh square feet (lsf), the company
has sold around 3.49 lsf (i.e. around 57%) valued at INR80.94 crore
as on March 3, 2019. The company has received bookings for 245
plots which constitute around 78% of phase1 sales.
TICPL is a special purpose vehicle (SPV) formed by the True Value
Homes (TVH) group, to develop a real estate residential project
(TVH Mannivakkam) at Mannivakkam, Chennai. The TVH Mannivakkam
project was initially conceived to be developed as plots,
independent villas, row houses, semi-independent housing units and
multi-storey apartments. Due to adverse market conditions and delay
in obtaining necessary approvals, the project has been converted
into sale of plots. Construction of villas/houses will take place
at the behest of the customers. The project was proposed to be
developed in two phases and the first phase has been launched in
May 2016. Out of the total saleable area of around 6.11 lakh square
feet (lsf), the company has sold around 3.49 lsf (i.e. around
57%).
TRIVENI WIRES: CARE Maintains 'D' Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Triveni
Wires Private Limited (TWPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 35.79 CARE D; Issuer not cooperating;
Facilities Based on best available
Information
Short Term Bank 4.00 CARE D; Issuer not cooperating;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from TWPL to monitor the ratings
vide e-mail communications dated January 3, 2020,February 8, 2020,
March 12, 2020,March 20,2020 and numerous phone calls. However,
despite CARE's repeated requests, the company has not provided the
requisite information for monitoring the ratings. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the best available information which however, in CARE's opinion
is not sufficient to arrive at a fair rating. Further, TWPL has not
paid the surveillance fees for the rating exercise as agreed to in
its Rating Agreement. The rating on TWPL's bank facilities will now
be denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
The ratings take into account delay in servicing of debt
obligations by the company.
Detailed description of the key rating drivers
At the time of last rating on March 1, 2019 the following were the
rating strengths and weaknesses (Updated for the available
information)
Key Rating Weaknesses
* Delays in debt servicing: As per the banker due diligence
conducted during last review, there were delays in repayment of
term loan and overdrawals in the cash credit facility for more than
30 days on account of stretch in liquidity position.
Incorporated in the year 1981, TWPL is engaged in the manufacturing
of galvanized iron wires, barbed wires, and chain links amongst
others. The company is using patented Electro Plasma Technology
(EPT) to clean and coat metals which uses electricity and benign
electrolytes for cleaning thereby eliminating the need for strong
acids. The manufacturing facility of the company is located at
Butibori, Nagpur with an installed capacity to manufacture 36000
MTPA.
USHA IMPEX: CARE Keeps D on INR30cr Bank Loans in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Usha Impex
(UI) continues to remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 6.00 CARE D; Issuer not cooperating;
Facilities Based on best available
Information
Short term Bank 24.00 CARE D; Issuer not cooperating;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated November 22, 2018, placed
the ratings of UI under the 'issuer noncooperating' category as UI
had failed to provide information for monitoring of the ratings as
agreed to in its Rating Agreement. UI continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 16, 2020. In line with the extant SEBI guidelines, CARE has
reviewed the rating on the basis of the best available information
which however, in CARE's opinion is not sufficient to arrive at a
fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of Usha Impex (UI)
continue to be constrained by the ongoing delays in debt servicing,
exposure to raw material price volatility and foreign currency
fluctuation risk and highly fragmented and
competitive nature of the industry.
Detailed description of the key rating drivers
At the time of last rating on November 22, 2018 the following were
the rating weaknesses:
Key Rating Weaknesses
* Ongoing delays in debt servicing: The firm's accounts have been
classified as a Non performing asset.
* Exposure to raw material price volatility and foreign currency
fluctuations risk: The prices of raw materials (traded products);
non-ferrous metals like Zinc, Nickel, Tin, Copper, Lead are highly
fluctuating in nature and move in tandem with global demand-supply
factors. Furthermore the firm procures its raw materials primarily
via imports. The profitability margins therefore remain exposed to
any adverse fluctuations in the prices of the raw material and
foreign exchange.
* Highly fragmented and competitive nature of the industry: The
spectrum of the non-ferrous metal industry in which the firm
operates is highly fragmented and competitive marked by the
presence of numerous players in India. The trading of ferrous and
non-ferrous raw materials industry is highly fragmented and
competitive with majority of the total number of players being
unorganized. Hence the players in the industry do not have any
pricing power and are exposed to competition induced pressures on
profitability.
Incorporated in 1998, Usha Impex (UI) is engaged in the trading of
non-ferrous metals from its main office in Ludhiana, Punjab. In
addition, the firm has three warehouse-cum-sales offices, one each
in Gurugram, Mumbai and Bangalore. The traded products include
non-ferrous metals like Zinc, Nickel, Tin, Copper, Lead etc. in the
form of wires, rods, bars, sheets, ingots, cathodes etc. The
products find application in automobile, bicycle and electrical
components with end users located throughout India. The firm has
Jindal Agro Mills Private Limited (rated, 'CARE D; ISSUER NOT
COOPERATING'), as its group concern, which is engaged in the
trading and manufacturing of non-ferrous metals since 1989.
V.K. GOPAL: ICRA Maintains 'B' Debt Ratings in Not Cooperating
--------------------------------------------------------------
ICRA said the ratings for the INR9.50-crore bank facilities of V.K.
Gopal Continues to remain under 'Issuer Not Cooperating' category'.
The ratings are denoted as "[ICRA]B(Stable) ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 3.75 [ICRA]B(Stable); ISSUER NOT
Fund based COOPERATING; Rating Continues
Cash Credit to remain under issuer not
cooperating category
Long-term– 2.00 [ICRA]B(Stable); ISSUER NOT
Non-Fund COOPERATING; Rating Continues
Based to remain under issuer not
cooperating category
Long-term- 3.75 [ICRA]B(Stable); ISSUER NOT
Unallocated COOPERATING; Rating Continues
to remain under issuer not
cooperating category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
information on the issuers' performance. Accordingly, the lenders,
investors and other market participants are advised to exercise
appropriate caution while using this rating as the rating may not
adequately reflect the credit risk profile of the entity.
V.K. Gopal Constructions was established by Mr. V.K. Gopal in 1995
as a proprietorship firm. Since the inception, the firm has been
involved in construction of civil works, formation of roads, and
asphalting. The firm has completed projects mainly in the state of
Karnataka and most of them have been done in and around Bangalore.
=================
I N D O N E S I A
=================
INDONESIA: Faces Recession as Virus Response Remains Fractured
--------------------------------------------------------------
The Jakarta Post reports that Indonesia's economy may enter a
recession and experience a much longer recovery than other
countries in Southeast Asia if the government's management of the
COVID-19 pandemic remains "slow" and "amateurish", economists have
warned.
A recession happens when a country sees its gross domestic product
(GDP) decline for two consecutive quarters in conjunction with
other monthly indicators, such as a rise in unemployment, the
report notes.
According to the Jakarta Post, University of Indonesia senior
economist Faisal Basri voiced concerns over the government's
handling of the health crisis, adding that with the current
containment measures, the country could see an economic contraction
of up to 2.5 percent, or 0.5 percent growth in a best-case
scenario.
"The sophisticated economic policy taken by the government will be
in vain if the government's COVID-19 containment measures remain
amateurish," the report quotes Faisal as saying during an online
discussion on April 24.
"The trajectory of Indonesia's economy is very hard to predict
right now, as the government has been late to ban mudik [exodus]
while the large-scale social restrictions have not had much of an
impact," he said, warning that the country's economic recovery
would take much longer and incur higher costs.
According to the report, the government's Idul Fitri mudik ban came
into effect on April 24 and will remain in place until May 31 with
travel restrictions to be enforced in COVID-19 red zones. The ban
comes after the government resisted calls from health experts since
late last month.
Fitch Solutions has downgraded Indonesia's economic growth
projection to 2.8 percent, down from its initial projection of 4.2
percent, as spending and investment are expected to slow, The
Jakarta Post notes. That compares with the government's 2.3 percent
GDP growth projection for this year, which would be the lowest rate
in 21 years. Under a worst-case scenario, the government foresees
an economic contraction of 0.4 percent.
"We assess that the contraction in the economy could be deeper if
the outbreak is not contained over the next quarter, and as such
further downward revisions to our 2020 growth forecast should not
be discounted," the researchers, as cited by the Jakarta Post,
added. "We believe that private spending will collapse later this
year as employment conditions continue to worsen."
=================
S I N G A P O R E
=================
HIN LEONG: Has High Profile Loans with Standard Chartered
---------------------------------------------------------
Bloomberg News reports that problem loans at some of Standard
Chartered's large clients may top US$600 million (SGD854 million)
as a string of corporate scandals coincides with woes at firms hit
by the coronavirus pandemic.
NMC Health, the hospital operator that's uncovered evidence of
fraud, and Hin Leong Trading, the Singapore oil trader being
investigated by police, represent nearly US$500 million of lending
for Standard Chartered, Bloomberg discloses citing public filings.
Separately, a South African farm bank that the London-based company
lends to has defaulted on some of its debt.
Loan-loss provisions have dominated banks' earnings reports this
quarter. With lockdowns in response to the pandemic devastating
entire industries, lenders are bracing for a spike in corporate
defaults and restructurings.
The exposures to problem companies are unlikely to lead to complete
write-offs of the loans. However, in the case of Hin Leong,
Standard Chartered and other banks may only get back 18 US cents on
every dollar lent, according to affidavits cited by Bloomberg.
Bloomberg says Hin Leong and the other exposures only represent
some of the highest-profile loans that could cause trouble for
banks as pressures from the pandemic ripple through the financial
system. While problems from the Singaporean firm will be
maneagable, banks are likely to be hit by bad loans to energy
producers hit by oil's crash, analysts at Bloomberg Intelligence
said in a report published on April 24.
Although headquartered in London, Standard Chartered makes its
money largely from doing business with companies and individuals
across Asia, Africa and the Middle East - where the bulk of its
operations and staff are also based. Together, the three regions
account for nearly 70 per cent of the bank's assets, according to
data compiled by Bloomberg.
Standard Chartered is among several banks facing losses related to
Abu Dhabi-based NMC. A committee has already been set up to
restructure the hospital operator's US$6.6 billion debt pile; other
lenders on the hook include Barclays and HSBC Holdings.
More recently, the implosion of secretive Singapore trading house
Hin Leong as oil prices cratered has left banks attempting to claw
back nearly US$4 billion in loans. Standard Chartered accounts for
about US$240 million of that total; HSBC is the biggest creditor,
with a US$600 million exposure, Bloomberg notes.
About Hin Leong
Hin Leong Trading (Pte.) Ltd. provides petroleum products and
transportation services. The Company offers oil, lubricants,
grease, and diesel products, as well grants storage, terminalling,
trucking, and marine logistics services. Hin Leong Trading serves
customers globally.
Hin Leong Trading and shipping unit Ocean Tankers (Pte.) Ltd. filed
for court protection from creditors on April 17, 2020, as the
former struggles to repay debts of almost US$4 billion.
Hin Leong posted a positive equity of US$4.56 billion and net
profit of US$78 million in the period ended October 31, according
to the people, who asked not to be identified as the matter is
sensitive, according to Bloomberg News.
But Hin Leong told its creditors this month that total liabilities
reached US$4.05 billion as of early April, while assets were just
US$714 million, leaving a hole of at least US$3.34 billion,
according to screenshots of the presentation to a group of bankers
seen by Bloomberg News.
The balance sheet of the company showed no equity at all as of
April 9, 2020, and warned that "figures obtained from the company
are subject to verification," Bloomberg News added.
As reported in Troubled Company Reporter-Asia Pacific on April 24,
2020, The Financial Times said that Hin Leong is seeking to appoint
PwC as an independent manager to run the business as it pursues a
debt restructuring of almost $4 billion. The company will withdraw
the bankruptcy protection filing it submitted on April 17 and
instead ask Singapore's High Court to appoint PwC as a third party
to run the company, a process known as judicial management.
KRISENERGY LTD: Rubicon Unit Demands US$5.4MM Payment
-----------------------------------------------------
The Business Times reports that KrisEnergy, which is undergoing
debt restructuring, on April 27 said an affiliate of Rubicon
Vantage International is seeking payment of about US$5.4 million.
According to BT, KrisEnergy said the affiliate, Maritime
International Services (MIS), "has sought to make a demand" against
it, in relation to a parent company guarantee from KrisEnergy under
an October 2014 contract.
This guarantee secures the performance of its Thai wholly-owned
subsidiary KrisEnergy (Gulf of Thailand)'s (KEGOT) obligations to
MIS under the contract for the operations and maintenance of the
"Rubicon Vantage" floating storage and offloading facility, BT
relays.
KrisEnergy said on April 27 that after consultation with legal
advisers, it is of the view that MIS is not entitled to claim under
the parent company guarantee.
"The company intends to vigorously resist and refuse any and all
allegations or claims made against it," it added.
BT relates that Rubicon has earlier also filed claims against
KrisEnergy and the Thai subsidiary in relation to a bareboat
charter dated October 2014. Under this charter, KrisEnergy had also
issued a guarantee to secure the performance of KEGOT's obligations
to Rubicon.
According to the report, Rubicon's claims included a statutory
demand for US$2.84 million filed against KEGOT in February this
year, as well as a letter of demand sent to KrisEnergy in August
last year for the repayment of US$2.6 million from a UK court
judgment.
On April 27, KrisEnergy said that KEGOT, as the charterer under the
bareboat charter, has issued legal proceedings against Rubicon in
the High Court of Justice - Business and Property Courts of England
and Wales.
KEGOT is seeking, among other things, damages for breaches of the
charter, damages for misrepresentation and an indemnity in respect
of the amount awarded by the English High Court for the claims
under the bareboat charter guarantee, the report says.
Last August, the Singapore High Court granted KrisEnergy a
moratorium to restrain Rubicon from taking any enforcement steps
including pursuing the winding up of KrisEnergy in any
jurisdiction, recalls BT. This is to allow KrisEnergy an
opportunity to restructure its debt obligations in a manner that
will be fair and equitable to all its stakeholders.
The moratorium has been extended till May 27, 2020, BT notes.
Trading in KrisEnergy shares has been suspended since August 2019.
About KrisEnergy Limited
KrisEnergy Limited -- https://krisenergy.com/ -- is a
Singapore-based investment holding company. The Company is an
independent upstream oil and gas company with a portfolio of
exploration, appraisal, development and production assets focused
on the geological basins in Asia. The Company operates through
exploration and production of oil and gas in Asia segment. The
Company holds interests in approximately 20 licenses in Bangladesh,
Cambodia, Indonesia, Thailand and Vietnam covering a gross acreage
of approximately 60,750 square kilometers.
In August 2019, the firm sought court protection from creditors'
legal action while it restructured its debts, according to The
Business Times. Keppel Corporation, a creditor and shareholder of
KrisEnergy, then publicly came out to support the application and
KrisEnergy's management in formulating a restructuring plan.
Total debts stood at around US$558.8 million as at June 30, 2019,
according to KrisEnergy's presentation slides for its Sept. 10
informal investor meeting for noteholders and shareholders.
STRIDES PHARMA: Bank Debt Trades at 16% Discount
------------------------------------------------
Participations in a syndicated loan under which Strides Pharma
Global Pte Ltd is a borrower were trading in the secondary market
around 84 cents-on-the-dollar during the week ended Fri., April 24,
2020, according to Bloomberg's Evaluated Pricing service data.
The USD71 million bridge term loan is scheduled to mature on March
28, 2026. As of April 24, 2020, the full amount has been drawn and
is outstanding.
The Company's country of domicile is Singapore.
=================
S R I L A N K A
=================
SRI LANKA: Fitch Cuts LongTerm IDRs to 'B-', Outlook Negative
-------------------------------------------------------------
Fitch Ratings has downgraded Sri Lanka's Long-Term Foreign- and
Local-Currency Issuer Default Ratings to 'B-', from 'B'. The
Outlook is Negative.
KEY RATING DRIVERS
The downgrade of Sri Lanka's IDRs reflects the following key rating
drivers.
The shock to Sri Lanka's economy from the coronavirus pandemic will
exacerbate already-rising public and external debt sustainability
challenges following tax cuts and an associated shift in fiscal
policy late last year. The pandemic will especially hurt the
tourism sector, which, combined with weaker domestic demand, will
further damage Sri Lanka's public and external finance metrics.
Sri Lanka's external financing challenges have increased in the
current environment of global risk aversion and financial market
volatility, with large upcoming external debt redemptions and
limited foreign-currency (FX) reserves. Its reserves are about
USD7.2 billion, while the sovereign's external debt payments from
May to December 2020 amount to USD3.2 billion, including a USD1.0
billion international sovereign bond payment due in October. Fitch
estimates Sri Lanka's external liquidity ratio, defined as liquid
external assets/external liabilities, at about 64%, among the
weakest in the 'B' rating category.
The authorities are seeking to meet external funding needs in 2020
through multilateral and bilateral support, but securing these
funds could be challenging due to the pandemic and its effect on
global liquidity and financing conditions. Its projections assume
the sovereign will not have access to international bond markets in
2020. Fitch understands that the government is in discussion with
various parties, including regional central banks on the use of
possible bilateral swap lines and the IMF on its Rapid Financing
Instrument for Covid-19-related funding. However, even after such
support, the country's FX debt service obligations and financing
challenges will remain substantial over the medium term. Official
figures suggest roughly USD13.8 billion of FX debt will come due
over 2021-2023.
Fitch expects the budget deficit to widen to 9.3% of GDP in 2020,
from an estimated 6.8% in 2019. This is weaker than the
authorities' forecast of 7.5%, as Fitch expects significantly lower
revenue due to the impact of the pandemic on economic activity and
the spillover of tax cuts announced late last year. Fitch also
anticipates that authorities may need to increase spending over
time to support the economy, although they have yet to formalize
any large-scale measures beyond 0.2% of GDP for relief to
vulnerable groups.
General government debt is high and the pandemic has increased
risks to public debt sustainability. Its baseline forecast is for
gross general government debt/GDP to rise to about 94% in 2020 and
96% in 2021, from an estimated 87% in 2019, and to continue rising,
increasing the risk of debt distress. This will see gross general
government debt stay far greater than the 'B' median of 52%.
Fitch forecasts GDP to contract by 1.0% in 2020, from 2.3% growth
in 2019, on account of the pandemic. Sri Lanka has so far recorded
a relatively small number of coronavirus cases, and authorities
have begun to loosen lockdown restrictions. Nevertheless, private
consumption, which makes up almost 70% of GDP, is likely to stay
muted as a result of partial lockdowns, domestic travel
restrictions, and other social distancing measures. Travel and
tourism, which the World Bank says accounts for 12.5% of Sri
Lanka's GDP, will be particularly hard-hit, with commercial flights
into the country suspended. Fitch expects GDP growth of 4% in 2021
on the basis of a gradual recovery in tourism receipts beginning in
late 2020. However, this forecast is subject to an unusually high
degree of uncertainty and downside risk, depending on the evolution
of the pandemic both within Sri Lanka and globally.
The Negative Outlook reflects its view that risks are skewed
clearly to the downside. The central bank has responded to market
pressures by ensuring liquidity and allowing the currency to
adjust, thereby protecting reserves. Nevertheless, capital outflow
pressure and market refinancing risks remain in the current
risk-averse environment. The potential for an economic recovery in
2021 hinges on an early return of tourism receipts and increasing
domestic activity, which is highly uncertain and is dependent on
the course of the pandemic. A second wave of infections that prompt
further periodic lockdowns would result in weaker GDP for 2020 and
2021.
Sri Lanka's 'B-' IDR also reflects the following key rating
drivers:
Parliamentary elections set for April 2020 have been postponed
because of health concerns from the pandemic and have been
provisionally rescheduled for June, but the timing could be further
delayed as circumstances warrant. The delay has prolonged policy
uncertainty. This, in turn, has made it difficult to complete the
seventh and final review under the IMF Extended Fund Facility
arrangement. Discussions over a new arrangement may be possible
only after the parliamentary elections and once next year's budget
is approved. The discussions could also be complicated by the
challenge of reaching an agreement on policies to place Sri Lanka's
public finances on a sustainable path.
A decline in tourism, lower remittances, and weaker exports are
likely to widen the current account deficit to 3.3% of GDP this
year - despite some relief from lower oil prices - from 2.2% in
2019, before narrowing to 2.3% in 2021, in line with its
expectations for a gradual recovery in the global economy.
Large interest payments as a share of revenue of around 65%,
according to Fitch estimates for 2020, a low fiscal revenue ratio
and high public debt/revenue ratio continue to highlight the weak
structure of Sri Lanka's public finances. The government
debt/revenue ratio was about 690% in 2019, significantly higher
than the 'B' median of 258%. FX debt continues to be about half of
total government debt, leaving Sri Lanka's public finances
vulnerable to renewed currency depreciation.
Sri Lanka's basic human development indicators, including education
standards, are high compared with the 'B' and 'BB' medians, based
on the UN Human Development Index Score, which positions Sri Lanka
in the 60th percentile, well above the 37th percentile for the 'B'
median. The country's per capita income of USD3,939 at end-2019 is
also modestly above the 'B' median of USD3,335.
Fitch's banking sector outlook was revised to negative in March,
reflecting a more challenging operating environment due to the
pandemic, which has pressured banks' asset quality and
profitability. Demand for credit is likely to remain muted in 2020
due to the weaker growth outlook. Authorities took a range of
measures since the Easter terrorist attacks in 2019 to accelerate
loan growth, including lending rate caps and policy rate cuts
totaling 100bp, but Sri Lanka's gross loans rose by just 5.6% in
2019, the slowest rate since 2009.
ESG - Governance: Sri Lanka has an ESG Relevance Score of '5' for
Political Stability and Rights as well as for the Rule of Law,
Institutional and Regulatory Quality and Control of Corruption, as
is the case for all sovereigns. These scores reflect the high
weight that the World Bank Governance Indicators have in its
proprietary Sovereign Rating Model. Sri Lanka has a medium World
Bank Governance Indicator ranking in the 46th percentile,
reflecting a recent record of peaceful political transitions, a
moderate level of rights for participation in the political
process, moderate institutional capacity, established rule of law
and a moderate level of corruption.
SOVEREIGN RATING MODEL AND QUALITATIVE OVERLAY (QO)
Fitch's proprietary SRM assigns Sri Lanka a score equivalent to a
rating of 'B' on the Long-Term Foreign-Currency IDR scale.
Fitch's sovereign rating committee adjusted the output from the SRM
to arrive at the final Long-Term Foreign-Currency IDR by applying
its QO, relative to rated peers, as follows:
External Finances: -1 notch to reflect high refinancing needs and
greater uncertainty surrounding financing availability in the short
term, as well as a low level of FX reserves that leaves the
external position vulnerable to adverse shifts in investor
sentiment.
Fitch's SRM is the agency's proprietary multiple regression rating
model that employs 18 variables based on three-year centered
averages, including one year of forecasts, to produce a score
equivalent to a Long-Term Foreign-Currency IDR. Fitch's QO is a
forward-looking qualitative framework designed to allow for
adjustment to the SRM output to assign the final rating, reflecting
factors within its criteria that are not fully quantifiable and/or
not fully reflected in the SRM.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade:
- Further increase in external funding stress, reflected in a
narrowing of funding options and weaker refinancing capacity that
threatens the ability to meet external debt repayments
- Prolonged policy uncertainty that contributes to a loss of
investor confidence
- Failure to arrest the upward trajectory of the general
government debt/GDP ratio, potentially reflecting an inability to
constrain the fiscal deficit
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade:
- Improvement in external finances, supported by higher non-debt
inflows or a reduction in external sovereign refinancing risks from
an improved liability profile
- Improved policy coherence and credibility, leading to more
sustainable public and external finances and a reduction in the
risk of debt distress
- Stronger public finances, underpinned by a credible medium-term
fiscal consolidation strategy
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Public Finance issuers have a
best-case rating upgrade scenario (defined as the 99th percentile
of rating transitions, measured in a positive direction) of three
notches over a three-year rating horizon; and a worst-case rating
downgrade scenario (defined as the 99th percentile of rating
transitions, measured in a negative direction) of three notches
over three years. The complete span of best- and worst-case
scenario credit ratings for all rating categories ranges from 'AAA'
to 'D'. Best- and worst-case scenario credit ratings are based on
historical performance.
KEY ASSUMPTIONS
The global tourism industry experiences a gradual recovery from
late 2020 or early 2021 after the initial, sharp shock from the
pandemic this year.
Global economic assumptions are consistent with Fitch's latest
Global Economic Outlook.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING
The principal sources of information used in the analysis are
described in the Applicable Criteria.
ESG CONSIDERATIONS
Sri Lanka has an ESG Relevance Score of 5 for Political Stability
and Rights as World Bank Governance Indicators have the highest
weight in Fitch's SRM and are highly relevant to the rating and a
key rating driver with a high weight.
Sri Lanka has an ESG Relevance Score of 5 for Rule of Law,
Institutional & Regulatory Quality and Control of Corruption as
World Bank Governance Indicators have the highest weight in Fitch's
SRM and are therefore highly relevant to the rating and are a key
rating driver with a high weight.
Sri Lanka has an ESG Relevance Score of 4 for Human Rights and
Political Freedoms, as strong social stability and voice and
accountability are reflected in the World Bank Governance
Indicators that have the highest weight in the SRM. They are
relevant to the rating and a rating driver.
Sri Lanka has an ESG Relevance Score of 4 for Creditor Rights, as
willingness to service and repay debt is relevant to the rating and
is a rating driver for the U.S., as for all sovereigns.
Except for the matters discussed, the highest level of ESG credit
relevance, if present, is a score of 3. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or to the way in which they are being
managed by the entity.
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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-
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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.
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